Chapter 761 - 349: Secret Franco-Russian Talks (Part 2)

The Russian ambassador with full diplomatic authority naturally kept nodding in agreement to the demands of the French Government.

This money was originally provided by the French, so it was only reasonable for them to dictate how Russia should use it. Moreover, upgrading the army’s weaponry was also a beneficial move for Russia, once re-equipped, Russia would become the true bulldozer of Europe.

To demonstrate their sincerity to their ally, this enormous loan of 10 million Pounds was interest-free. This was also why Tsar Alexander III sent diplomatic representatives with full authority and was eager to establish an alliance treaty with France.

After all, France was incredibly wealthy at this time. Although not as financially prosperous as the United Kingdom, the British funds were heavily invested in domestic factories and businesses, while French capital did not face as many such constraints.

Compared to investing in domestic enterprises, French capital preferred lending money to other countries, earning interest on loans effortlessly.

Currently, France was known as the empire of usury, with countless nations having had loan collaborations with France, even Spain had such financial dealings.

Indeed, at this time, Spain was a golden client in the eyes of French capital. The rapid growth of the Spanish economy and industry led to significant French investments in Spain, from which they soon profited generously in principal and interest.

Furthermore, due to Spain’s proximity to France, these French investors were not averse to investing in Spain, even eagerly participating in some of their construction projects.

It wouldn’t be an exaggeration to say that the rapid development of Spain’s economy could not have happened without the support of French capital.

In fact, it’s not that French capital was reluctant to invest in domestic enterprises, but rather that the frequent changes in the French Government seriously affected the execution of some of its policies.

Economic and industrial growth thrives only under political stability. Clearly, compared to the tumultuous politics of France, Spain was the more stable nation.

With the influx of French capital, the Spanish Government was also paying close attention. Currently, the industries most favored by French capital were agriculture, chemical industry, and machinery production, with investments reaching several billion francs.

French investments in agriculture focused primarily on the vegetable and fruit industries, which were characteristic of Spain.

Currently, Spain’s total vegetable production accounted for one-fifth of Europe’s total, and its fruit production accounted for one-third, making it Europe’s main exporter of fruits and vegetables.

In the production of olives and olive oil, Spain accounted for 35% and 42% of Europe’s total, respectively, and this scale was continuously growing.

It wouldn’t be an exaggeration to say that half of the olives and olive oil in the European market came from Spain, which is why Spain is known as the Kingdom of Fruits and Vegetables.

In terms of citrus fruits, Spain’s total production accounted for nearly half of all of Europe, and the citrus produced in Spain was famous for its sweet and delicious taste and aromatic fragrance, selling briskly across Europe and even America.

Carlo’s investments in Pepsi-Cola and Coca-Cola also led to the launch of citrus and lemon flavors, with these uniquely flavored sodas selling well across Europe and even establishing subsidiaries in America.

One factor behind the substantial scale of the Spanish vegetable and fruit industries was the agricultural development of the West Africa Colony, which transformed domestic land from grain cultivation to vegetable and fruit farming, together with various policy support and subsidies from the local government, as well as substantial investments from French capital.

Due to Spain’s dominance in vegetable and fruit production, its export companies wielded considerable power in pricing.

This nearly monopolistic position could generate several times the revenue of non-monopolistic enterprises, which was one of the reasons French investors were willing to pour money in.

Notably, after investing in the vegetable and fruit industries in Spain, French capital then transported these Spanish-produced vegetables and fruits back to France for sale.

While France’s agricultural scale was rather impressive, due to its larger population, its per capita vegetable and fruit production couldn’t match that of Spain.

Moreover, with various promotions from French capital, fruits produced in Spain became more popular in France.

Owing to the promotional efforts of French capital, Spanish wine also quickly expanded its market in France, gradually integrating into the daily lives of the French public.

Regarding the significant investments made by French capital in Spain, Carlo not only didn’t reject them but warmly welcomed them.

In truth, if it weren’t for the French interest in Morocco, there would be significant potential for an alliance between France and Spain.

Spain could become a staunch supporter of France, and France could aid Spain in better constructing the Iberian Fortress.

If France were an ally of Spain, the geographical advantage of the Iberian Peninsula where Spain was located would be immensely enhanced, and other countries trying to invade Spain would only be able to attempt an attack through sea landings.

Naval landings have never been an easy task, not to mention the construction of the Spanish land and naval forces has seen certain success.

To invade Spain from the sea, it would require a navy that is stronger than Spain’s and an equally superior army.

The navy would need to suppress Spain’s, giving the army a chance to land on the coast. Each coastal landing would come at a significant cost of casualties, a task that even the United Kingdom and Germany might not be able to accomplish perfectly.

The reason Spain hesitated to take a stance was, in actuality, to await the wooing from the Franco-Russian Alliance and the German-Austrian Alliance.

As a nation with strong land and naval forces, Spain had its options. Spain could even remain neutral; as long as it chose not to engage in European affairs, no nation could force Spain to declare its position.

If France could provide substantial financial and industrial support to Spain and express willingness to abandon its claims on Morocco, supporting Spain in annexing Morocco, Carlo would indeed be open to forming a series of cooperative treaties with France.

Because, aligning with the German-Austrian side would mean Spain had to face the dual pressures of England and France if it wished to take Morocco.

While England and France’s main forces were restrained by the German-Austrian Alliance, should Spain also enter the fray, it was possible England and France might focus their efforts on Spain first.

Regarding Italy, known for its historical indecisiveness, Carlo did not place much hope.

Even though Carlo hailed from the Italian Royal Family, he couldn’t be certain if Italy would side with the German-Austrian camp during a war. If it were the current Italian King Umberto I, perhaps Italy would be the more steadfast ally.

But unfortunately, Carlo’s brother didn’t reign for long and didn’t hold out till the outbreak of the First World War. His son, Carlo’s nephew, lacked his father’s firm resolve, which is why Italy wavered during World War I.

Of course, even if Italy remained consistent, its role in the war would be quite limited.

When considering the two major military blocs of Europe, Carlo usually only considered the scenario of France and Russia vs. Germany and Austria.

The United Kingdom was strong, but it wasn’t a major player in the early stages. The main players were indeed France and Germany, the two most formidable land military powers on the European Continent in the truest sense.

Looking at it from a historical perspective, Spain had a fair chance no matter which side it joined.

The Allies, being the historical victors, certainly had a greater chance of winning. By joining France and Russia, Spain could drag Germany to its knees just by stalling.

If siding with Germany, they would need to defeat Russia swiftly, then focus on France to stand a hope of winning this war.