Chapter 554: Hope's Revenge
"Actually, this fish and salted meat aren't bad at all." The Duke of Leeds meticulously carved the meat on his plate. "When I served in the navy, I once ate salted meat for two months straight—and certainly not this prime cut. You had to soak that stuff for two hours, then pound it with a hammer just to chew it."
He gestured with his fork. "Perhaps you're not accustomed to this fare, but it will be much better once we reach Petersburg. The Russian court is full of French chefs."
Grenville chuckled. "To be frank, while the French are rather detestable, no one can refuse their chefs."
"Especially the Russians," the Duke of Leeds added, taking a sip of wine. "It's a regulation in their court that the head chef must be French. Indeed, the Tsar confidently entrusts his stomach to them.
"Oh, I should mention, your journey this time will likely not be easy."
"Yes, I'm prepared for that," Grenville nodded. "After all, the Tsar's granddaughter is still apparently in Paris."
He let out a breath and smiled again. "However, I also have confidence. And speaking of which, your side is equally fraught with challenges."
The Duke of Leeds finished his last piece of bread, then picked up a napkin to wipe his mouth. "These old bones of mine can only help pave the way for you. After all, I still have a few old friends in Vienna.
"But whether an agreement can ultimately be signed will depend on young talents like yourself."
"When I lost 300,000 Pounds Sterling in North Africa, those fellows in Parliament hounded me like rabid dogs. Now, he expects us to invest nearly 500,000 Pounds Sterling here."
He leaned forward, lowering his voice. "Have you ever considered that he might have made some sort of deal with Vienna's merchants?"
"It's possible," Grenville conceded. "However, the potential returns make the risk worthwhile. Moreover, 170,000 Pounds Sterling of this sum comes from a loan provided by Hope's bank. I hear he's offering a very low interest rate."
"The poor wretch, blinded by hatred," the Duke of Leeds muttered, then added, "Another issue is that Vienna's merchants might not be willing to betray their reputations for such a paltry sum."
"It's a substantial sum," the Foreign Secretary corrected. "Even divided among fifty merchants, they would each receive more than two or three years' worth of their usual earnings.
"More importantly, you may be overlooking the Austrian merchants' animosity towards France. That alone would make them quite eager to see the French suffer a setback."
"Oh? If I recall correctly, wasn't Austria one of the initiators of the Rhine-Seine Treaty?"
"That 'marvelous' agreement is precisely the source of their animosity," Grenville replied, having finished his own lunch. He rose and gestured towards the door. "Would you care to go up on deck for some fresh air?"
"An excellent suggestion. Such fine sunshine is a rare sight in London."
The two men ascended the winding staircase to the deck, and Grenville continued, "When the Austrians initially signed this agreement, they believed that France's promised low tariffs would significantly boost their trade volume within France.
"Indeed, they achieved that; their trade with France rose by 35% last year. Yet, simultaneously, French exports to Austria nearly doubled.
"Even more significantly, France's trade volume with other South German States that joined the agreement increased by far more. Baden saw a 120% rise, while Württemberg's increased by 105%.
"These regions were originally Austrian markets. Ultimately, the Austrians discovered that the money they earned in France was far less than what France earned from them. Concurrently, the South German market grew increasingly fond of French goods.
"In fact, many merchants in Vienna are already calling for withdrawal from the Rhine-Seine Treaty, or for it to be renegotiated after excluding France."
The Duke of Leeds chuckled. "Then where does the 'Seine' in the treaty's name come from?"
"Who knows," Grenville smiled, "Perhaps they'll bring Switzerland into it. In any case, rest assured that you will find many supporters in Vienna. Your only concern must be secrecy."
"The president of the Vienna Chamber of Commerce and I are old acquaintances, so you can rest easy on that front," the Duke of Leeds affirmed. "Finally, do you truly believe the Dutchman's predictions will come to pass?"
"I can only say there's a strong possibility," Grenville nodded. "Frankly, Hope truly understands France, and he's seized this moment with remarkable precision.
"France has just implemented tax system reform, meaning their Finance Minister has not collected the massive tax farming revenue as in previous years.
"This leaves their treasury extremely vulnerable. And the newly appointed government tax officials, lacking experience, will only exacerbate their revenue collection issues.
"Oh, I just received word from Mr. Hartley last week that France's tax collection for January only met 83% of its original target. Poor Mr. Hartley, his work is actually quite outstanding, but he's about to be dismissed due to the renegotiation of the Eden Treaty. It's truly unfair."
The two British officials walked past the saluting sailors on deck and made their way to the bow of the ship.
"At the same time, Hope also brought up a crucial issue: the French reliance on their 'Industrial Development Fund'."
The Duke of Leeds gazed at the tranquil sea in the distance, a note of confusion in his voice. "That seems to be merely an institution the French government uses for industrial investment, doesn't it?"
"Yes," Grenville confirmed, "But it also has a more critical role: it is the debtor to many French nobles.
"The French utilized this institution to complete their previous banking sector restructuring, channeling a significant amount of debt into industrial investments."
The Duke of Leeds finally caught the underlying implication. "So, if this fund runs into trouble, the nobles at Versailles will go mad?"
"Precisely. Hope mentioned that while the Development Fund's capital is substantial, the vast majority has been invested in French industries like textiles, steel, and coal, leaving it with very limited liquid cash.
"If your operation proceeds successfully, French factories will face widespread capital shortages. The Development Fund, as a major shareholder, will be unable to provide them with financial support. When these factories inevitably go bankrupt, it will lead to enormous losses for the fund.
"This will buy us considerable time during the preparatory phase of our strategic plan and serve as a brilliant start."
The Duke of Leeds patted the railing. "Alright then, I'll ensure the Austrian merchants place as many orders as possible."
...
A day later, the Polyphemus docked at Mecklenburg's port, and from there, the Duke traveled by carriage to Vienna.
Grenville continued with the ship, disembarking in Riga, and several days later, he was granted an audience with Catherine II, as he had hoped.
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