Holy Roman Empire - Chapter 498

Chapter 498: Chapter 71, Trickery and Deceit
 

After preparing to cut losses, the French government immediately organized an asset list and sent it to various European countries, looking for prospective clients.

The key targets were naturally England and Austria, other countries simply did not have the capacity to absorb the Mexican Empire. Prussia and Russia might have had the military might, but with empty pockets, they were not good buyers.

In Vienna, since the news of France’s intention to sell its assets in Mexico had spread, the Austrian Government also conducted an in-depth analysis.

The result was naturally self-evident: decidedly subpar assets. Don’t be fooled by the series of privileges that the French had obtained, virtually monopolizing Mexico’s mineral resources; the problem was that these assets were difficult to liquidate.

To turn these real estates into real assets, one must first help the Mexican Government stabilize the situation. As long as the civil war does not cease, these mines are worthless.

With the local population having no purchasing power, the commercial privileges were also useless. Surely one couldn’t be expected to spend money and effort to help the Mexican public prosper and achieve moderate wealth?

This isn’t the 21st century; resources at this time held little value. In this era, the most valuable aspect of the Mexican Empire was its silver mines; however, the silver extracted had to be used first to repay the debts of the French.

True, the French are now selling at a tearful discount, but the required investment is too large and potential gains unclear.

To put it bluntly, only the money in hand is truly yours. No matter how attractive the prospects of future gains are painted, if they’re not in your hands, it’s all idle talk.

Everyone understood this, and the French’s bottom line kept dropping. From their initial hope of getting back their loans and selling a few trifles, now they would be content just to recover the principal.

If that still didn’t work, the terms could be further negotiated; Napoleon III might even accept recouping 70 to 80 percent of the investment.

It’s not that Napoleon III’s bottom line is low; it’s mainly because he had lost faith in Maximilian I. Continuously pouring money into a bottomless pit, even the wealthy France could not endure it.

Once Maximilian’s regime collapsed, their investment would be completely lost. The Mexican Republicans were overthrown exactly because they defaulted on debts, so expecting them to continue to fulfill their obligations was exceedingly improbable.

Regrettably, perhaps due to the formidable reputation of the French in Europe, others were reluctant to touch what even the French couldn’t swallow.

Despite the Paris Government repeatedly lowering the conditions – the loans wouldn’t require immediate payment by the takers, only a guarantee that the Mexican Government would fulfill its obligations, they even offered commissions.

Simply put, the French would recover most of the loan principal, and any interest or earnings from the various privileges would go to the new holder.

The result was still the same: no one was willing to take over. In case the Mexican Government failed to repay the debts, it would be the new holder who had to pay.

It turned out that all countries had their own bottom line and were unwilling to risk their credibility, with nobody willing to provide this guarantee to the French.

Actually, there were many who were interested in Mexico, but most only wanted to make a quick profit and were really not willing to make a large-scale investment.

For example, the Spaniards have always wanted to turn Mexico back into a colony. After the outbreak of the American Civil War, they also took concrete actions, only to be squeezed out by the French in the end.

Now because of a succession dispute, Spain exploded into a civil war. The French had a hand in this too; if not for Napoleon III forcefully vetoing the military’s nominee with martial threats, things wouldn’t have escalated to this point.

With civil war underway, it was naturally impossible for Spain to expand into Mexico again. The Spaniards’ overseas colonies were currently on edge, fearing they would be swallowed up at any moment.

And then there were the British, they too were expanding in Mexico, but their investment was insufficient; they could not outcompete the French.

If they were unwilling to invest before, there’s even less to say now. The British had too many colonies and could not manage them all, making the Mexican Empire hardly arousing their interest.

Additionally, the Kingdom of Prussia showed interest in Mexico. Unfortunately, they had no money; they couldn’t even afford the initial investment needed to suppress the Mexican rebellion.

Such paupers were naturally not quality clients. It’s estimated that even if it were offered for free, Prussia wouldn’t have the funds to send troops to intervene in the Mexican civil war.

To stop losses, the French government has secretly been in contact with the Republicans. As long as Juarez is willing to continue honoring the treaties signed with Maximilian, letting them take power is also negotiable.

…

Late at night, the Mexican Revolutionary Army’s headquarters was brightly lit, with Juarez still convening a military meeting to discuss the next combat plans.

Fighting despite multiple defeats befits the Mexican Revolutionary Army. Since Juarez initiated the uprising, it had continued to this day, enduring hundreds of battles, big and small, which mostly ended in failure.

Thanks to the reform policies of Maximilian I, the Rebel Army, instead of disbanding, grew progressively stronger through these failures.

War is the best teacher; from initially clashing head-on with the French to their current strategy of widespread guerrilla warfare, the Rebel Army had matured significantly.

Although they still couldn’t beat the French, when facing the Mexican government army, they held their own. Without French support, Maximilian I would have been overthrown long ago.

Foreign Minister Hadro said, “Mr. President, the Americans have sent a message; the Paris Government’s position has changed—they plan to sell the privileges obtained from that tyrant.”

The Mexican Revolutionary Army also had a government, as they did not recognize the legitimacy of Maximilian I’s administration and had formed their own Republican Government, which could be considered a continuation of the previous Republic.

With financial backing, the Rebel Army’s situation improved, and this makeshift government progressively developed, now fully established.

The leaders were almost all political prisoners pardoned by Maximilian I initially, which was somewhat awkward.

The provisional government was also rife with internal conflicts. To prove there was no collusion with Maximilian I, they branded him with the title of tyrant.

Honestly, the accusation was extremely unfair. At worst, Maximilian I was a negligent ruler, definitely not a tyrant.

But these were the key points; they were all Republicans, and no one would defend him. Since he was the enemy, the darker the portrayal, the better.

Juarez said joyfully, “It seems the French can no longer bear it, the day of victory for the revolution is not far off.”

Upon hearing this good news, everyone’s spirits lifted. After all, being at enmity with France brought immense pressure.

In this era, France was at the height of its power, and its influence in Mexico was exceptional. If it were not for significant damages to their interests, many would not have joined the revolution.

Even among those who joined the Revolutionary Army, many doubted whether victory could be achieved. To drive out the French, they had launched many decisive battles, each concluding in failure.

The shadow of defeat lingered deep within everyone’s hearts; all were aware that the French had committed less than a tenth, perhaps not even a twentieth, of their capacity to Mexico.

With just this small investment, they had them gasping for breath, so naturally, everyone had deep reservations about the French. Now that they heard the French might give up, they were naturally very happy.

A middle-aged officer asked with concern, “Is anyone taking over?”

If the French withdrew and someone else took their place, that would become their new enemy. It would be tragic if, just as they were repelling the wolf at the front door, they found a tiger entering from the back.

The idea of “driving off wolves and chasing away tigers” sounded good, but in reality, it would be difficult. The strength of the Revolutionary Army was limited; they couldn’t fulfill such a grand task.

Their greatest fear lay with Austria, with the Emperor coming from the Habsburg Family. If the intervention switched from France to Austria, the cooperation between them would surely become tighter.

Next door was the Austrian Central American Colony, and it would be all too easy for the Vienna Government to meddle in Mexican internal affairs.

Minister of Foreign Affairs Hadro replied energetically, “The French have failed, how could there be anyone taking over?”

The tension in everyone’s expressions eased instantly. If there was no foreign power intervention, they were still very confident about overthrowing the rule of Maximilian I.

After a pause, Hadro continued, “Mr. President, why don’t we agree to the French’s terms first, and then renege once we have expelled Maximilian I?”

Contact with the French was conducted in secret, but those present were senior officials and naturally understood that there were clandestine links between the Revolutionary Army and the French.

This was not surprising. The French held too much power, and without confidence in victory, everyone was prepared to compromise with the French even while rising in armed rebellion.

The deal had not been struck because the conditions between the two sides were too far apart, but this channel was still retained, considered an option for retreat.

“Cheating the French,” Hadro suggested, and everyone’s faces changed color.

They had just been waiting for the French to be unable to persist and prepare to withdraw their forces. Now, if they were to provoke the French again, who knew if the French would fly into a rage out of humiliation?

Juarez shook his head and said, “No, France is a major country; even if they are defeated here, it would hardly affect their power. If we seriously offend them, our future would be filled with never-ending troubles.”

This was not Juarez being overly cautious; he simply lacked the power to act and speak firmly. Even if the French gave up on Mexico, they could still create a multitude of problems for them.

Hadro argued reluctantly, “Mr. President, the dealings with the French have been kept strictly confidential.

Even if they trade with us, the Paris Government wouldn’t dare to sign a written treaty. If the news of betraying Maximilian I becomes public, Napoleon III cannot bear the political impact either.

With just a verbal agreement, even if we breach it, the French can’t publicly hold it against us.

As for retaliation, at this point, can our relationship with the French get any better?

Unless we continue to fulfill the treaty signed by Maximilian I, there is no possibility of appeasement between us.”

Juarez fell into hesitation. To achieve revolutionary victory in the shortest time, tricking the French was the best option.

Not to mention the absence of a treaty, even with one, it would be possible to default. But retaliations from the French would be tough to endure, and Juarez did not dare underestimate the strength of the French.

The prior default on debts was a profound lesson. Aside from the government’s financial collapse and inability to pay, Mexico had assumed European countries wouldn’t go to war over such a small amount of money. However, England, France, and Spain all intervened, with the French becoming entrenched here.

After years of civil war, the economic losses brought to Mexico were many times that of the debts.

Even if no one pointed fingers at him, Juarez was acutely aware of his responsibility in this matter. With this lesson learned, he had naturally become more cautious.

Juarez inquired, “What do others think?”

Finance Minister Anderson was the first to answer, “I think it’s worth a try. Not long ago, the French annexed Italy and are busy digesting their gains.

They will likely contract strategically for the short term. This is a matter of national policy, and the Paris Government is unlikely to change it just for us.

This period could last for ten or more years. That’s our opportunity. As long as we complete internal reforms and the country grows stronger during this time, we needn’t fear French retaliation.”

Army Minister Grover added, “We’ve come this far; why care about the French? They’re the enemy anyway, and deeply offending them doesn’t matter.

As long as we can quickly overthrow the corrupt tyrant’s regime, we can establish a strong Mexican Republic and need not worry about French retaliation.”

…

They were all optimists, believing that simply by overthrowing Maximilian I’s rule, Mexico could instantly become strong.