Chapter 1530 - 49: Set Up

Chapter 1530: Chapter 49: Set Up

The current economic situation in all of Europe, including Russia, is not optimistic. Post-war reconstruction has been delayed, and economic recovery faces significant hindrances.

Due to the First World War, Europe’s wealth has flowed out in large quantities, especially from the governments of the participating nations, leaving them penniless and heavily indebted. Russia, being rather straightforward, directly chose to default, but had to endure the collapse of its international reputation and image, as well as global sanctions.

The situation is equally dire for the UK, France, Germany, and Austria. If possible, they too would like to emulate the Russians and default. Now, the most troubled is the United States, the world’s largest creditor nation. As the saying goes, those who owe are like a lord, so the United States must put in some effort to recover Europe’s debts.

November 23, 1923.

The first League of Nations conference was officially convened, and the mainstream nations of the world were basically invited. Besides discussing post-war configurations, world economic recovery, anti-Labor Party issues, the debt problem was also a central focus.

Thus, after discussing the reconstruction of Europe’s post-war order and how to deal with the European Labor Party,

"The current progress of post-war reconstruction in Europe is slow, with severe damage to production and living facilities. This means Europe is now incapable of repaying its debts substantially, so countries like the United States, East Africa, and Japan should empathize with the difficulties faced by European nations today." The UK representative made the first move at the League of Nations conference.

Among the three countries named, the representatives of the United States and East Africa looked visibly displeased.

Although East Africa and the United States are still not sure whether to join the League of Nations, they sent special envoys to attend its first conference.

Regarding the debt issue, the American delegate, Smith, retorted bluntly, "Europe, as an important center of world civilization, should more so have a spirit of contract, after all, the wealth of us Americans didn’t come from the wind."

"As the world’s richest country, the UK shouldn’t say such things. Your contribution during the First World War may not be significantly greater than that of the United States, and your homeland wasn’t affected by the war at all. Where is this post-war reconstruction coming from?"

"Moreover, the UK’s national wealth is definitely the highest in the world. The UK itself is the world’s economic center, holding the most colonies and the largest global market share."

"As the world’s number one Great Power, the UK should be more proactive in taking responsibility rather than just enjoying the privileges the international system gives to the UK, which, to other countries, is unfair."

The Americans bluntly refuted the UK’s attempt to dodge debt. Among the major European countries that instigated the war, the UK’s economic strength was the most robust, and it suffered the least damage.

Admittedly, to support the war, the UK borrowed a large amount in US Dollars from the United States, but objectively speaking, this was the UK’s own fault, and the United States would not be lenient because of it.

The East African delegate, Gers, also chimed in, "As Lord Smith stated, European countries should emphasize the importance of contractual spirit, or else it would be a significant destruction of the existing social order and international rules. Clearly, no country can bear the consequences of such an approach."

In reality, what Europe owes East Africa is not substantial, almost negligible compared to the United States. It wasn’t until the mid and late war that East Africa truly benefited, as before the war, East Africa owed Europe a significant amount of money.

Even though Europe’s debt to East Africa is small, it does not mean East Africa can ignore this debt. After all, nobody finds excess money troublesome, and fundamentally East Africa has never been a wealthy country. In terms of national income levels, East Africa is only ranked mid-level among the Great Powers.

Therefore, expecting East Africa, a nation that isn’t particularly prosperous, to bear responsibilities for traditionally wealthy European nations like the UK, France, Germany, and Austria is simply laughable.

The UK representative continued, "We, the UK, are naturally a nation of integrity, but you should also recognize the difficulties faced by the UK and Europe."

"Thus, we should delay the repayment deadlines and even consider generously reducing some non-essential debt issues."

Of course, the UK cannot overthrow the current international order, as the UK is the greatest beneficiary of it. Hence, it strives to maintain the old international order diligently, which does not conflict with the UK’s wish to dodge debt repayment.

Moreover, without overturning the old international order, neither the United States nor East Africa can do anything against the UK as the rule maker.

Overturning the old international order requires substantial military strength, and the military power disparity between the United States, East Africa, and Europe on European issues is quite pronounced, comparably against all of Europe, of course.

If Europe were a single country, undoubtedly, Europe could still hold the position of World Overlord and maintain it for at least another hundred years.

But Europe is not a single country, internally fragmented and diverse, yet individually, the major nations like the UK, France, Germany, Austria, and Russia are formidable in their own right.

Take Germany, for instance; if based on Germany’s performance during the First World War, confronting the United States and East Africa alone, the probable outcome would be Germany’s defeat. But if, toward the end of the war, another major European country suddenly joined?

Therefore, both the United States and East Africa are quite apprehensive about Europe as a whole, and allowing Europe to truly unite is beyond their consideration.