Holy Roman Empire

Chapter 442: Dream of Being a Strong Nation

Unable to obtain everything they wanted in Austria, the Japanese delegation conducted some investigations and then left, leaving behind a newly established Japanese embassy in Vienna.

One must admire the foresight of the Japanese. Despite being extremely poor, they gritted their teeth and set up embassies in several major European countries.

The cost of living in Vienna was high, especially compared to Japan, with housing prices being particularly astronomical. This wasn’t due to real estate speculation but was entirely the result of market self-regulation.

As Vienna’s largest, and essentially only, land supplier, Franz responsibly stated that speculating in real estate in Austria had no future.

The rise in Vienna’s housing prices was significantly contributed to by the words “city that never sleeps.” Just for this reputation alone, people were eager to buy property in Vienna.

With more people buying houses, the market supply couldn’t keep up with demand, and prices naturally went up. Currently, there was nothing in Vienna for less than 800 guilders, doubling from the same period last year.

Ordinary residential properties had seen significant increases, but the most dramatic rises were in luxury homes, with higher-end properties seeing the most substantial price hikes.

Especially in the noble districts, most estate prices had increased seven or eight times, with the cheapest ones costing over ten thousand guilders. Don’t think it’s too expensive; without noble status, you couldn’t buy them no matter how much money you had.

To save on expenses, the Japanese did not move into the Vienna embassy district but instead chose to buy and renovate several houses two kilometers away.

Moreover, playing poor had its advantages—it could reduce the great powers’ inclination to pry. If one’s own strength was insufficient yet they tried to put on a facade of power, wouldn’t that just be an invitation for others to come and take advantage?

As for face, Japan never had much of it, to begin with. In this era, which European country respected them?

Given this, there was no need to put on airs. From the very beginning, the Japanese were prepared to act humbly, and they maintained this stance for decades.

This is also why Japan was able to complete the Meiji Restoration without interference from the great powers. They behaved so well that no one considered them a threat.

By the time Franz returned to Vienna, the Japanese delegation had already left. Such minor matters were not worth his attention, and the officials who stayed behind only mentioned it in passing during their reports.

Had he known that Hirobumi Ito and others had visited, Franz might have struggled with the decision of whether to eliminate them. This wasn’t about interests; the memories from his past life alone would have been enough for him to make that decision.

Since he didn’t know, there was no need to worry. Hirobumi Ito and his group were currently investigating in the Kingdom of Prussia, probably never dreaming how close they came to losing their lives.

Even though they were a diplomatic mission and would be protected by various countries, there were plenty of potential accidents at sea—storms, pirates, and other dangers.

They were not yet allies of the British, and before the Meiji Restoration, they weren’t even significant enough to be considered pawns. If an accident happened, no one would care.

Without Franz’s intervention, history resumed its course. The Japanese government learned about the navy from the British and about the army from Prussia, and they brought back “Monarchism” with them.

As for learning from France and Austria, it was impossible because maritime countries couldn’t emulate continental ones. France and Austria were already European powerhouses, merely suffering a temporary setback akin to a cold, which they have now overcome with such ease.

Being the underdog, the Kingdom of Prussia’s defiant comeback against the mighty Russian Empire served as an iconic inspiration for the Japanese, so profoundly motivating that failing to learn from it was simply unacceptable.

Learning from Britain was out of necessity. How could a maritime nation survive without a navy? The 19th century was the era of sea power, and all the great powers were racing to conquer the oceans.

Franz was unaware of these minor episodes. He was currently troubled by the recently reclaimed Prussian-controlled regions of Saxony and Silesia, having been outmaneuvered by the Prussians this time.

Although the land was successfully handed over, the population had left. The initial plan to limit the development of the Kingdom of Prussia by reducing the core ethnic population was only half successful.

The total population of the Kingdom of Prussia had already surpassed the twenty million mark, with about 13.5 million being of the core ethnic group and Germanized population. This ratio was sufficient to ensure the stability of the country.

Nevertheless, at least East Prussia had been depopulated, so the effort wasn’t entirely in vain. Silesia also still had around 60,000 to 70,000 people who remained.

This was the result of proactive intervention by the Austrian government, which managed to retain this portion of the population. It wasn’t that the Prussian government was willing to give them up; these people simply didn’t want to move.

The attachment to one’s homeland is always strong. No matter how much the Prussian government promised, these people just wouldn’t move.

They had no psychological barrier to staying under Habsburg rule. If they didn’t want to move, they would not move, and with Austrian intervention, the Prussian government couldn’t use force and had to accept it.

Although the land was transferred to Austria, the property on it still had owners. This was not a major concern, and Franz wasn’t worried. It was the property owners who should be anxious.

If Silesia remained undeveloped, Austria would still be Austria. However, for the property owners, if Silesia wasn’t developed, many of their assets would become worthless.

For example, if the land was left uncultivated, it would soon be overgrown, yet taxes would still need to be paid.

Similarly, commercial properties and factories wouldn’t generate any income for their owners if they couldn’t operate normally.

What was needed now was for these property owners to calm down and understand how to cooperate in the future. Unless the Prussian government bought these assets and operated them behind the scenes, these owners wouldn’t last long.

Franz’s biggest headache was the Saxon government constantly submitting proposals to the central government, demanding that the new Holy Roman Empire sanction the Kingdom of Prussia.

They had spent a lot of money to reclaim the Prussian-controlled Saxon region, and now there were only a few thousand residents left. Developing this area would require significant investment and immigration.

The Kingdom of Saxony couldn’t tolerate being outmaneuvered. If not for the vast disparity in military strength, Franz suspected they would have taken direct action.

Instead of using force, the Kingdom of Saxony resorted to its own methods of retaliation, such as closing trade routes between the two countries and banning the sale of Prussian goods in Saxony.

But this wasn’t enough for them; they wanted the entire new Holy Roman Empire to sanction Prussia. Even though they knew this would be a mutually damaging approach, the Saxon people were fearless and determined to take a stand.

Franz naturally found this situation headache-inducing, as such sanctions were meaningless. Even if the new Holy Roman Empire blockaded Prussia, they could still obtain goods from Britain and France.

Moreover, after the economic crisis, tariffs between countries had almost halted import and export trade. The total foreign trade between Prussia and Austria was less than ten million guilders, less than a third of what it was before the crisis.

Policies cannot be crafted on a mere whim; haphazardly enacting them out of spite will inevitably impair the interests of businesses. What if it leads to increased unemployment and exacerbated social conflicts? The repercussions would far outweigh any perceived benefits.

There was no rush to retaliate against Prussia—there would be plenty of opportunities in the future. Acting blindly and damaging public relations would be detrimental.

There was no choice; if the Kingdom of Saxony wanted to act on its own, it had the right to do so, and Franz couldn’t be bothered to interfere.

Every family has its own troubles. Comparing his situation, Franz felt more at ease. The British were still dealing with troubles in Ireland and Scotland, and the French were creating their own problems. By comparison, Austria was doing quite well.

The constituent states were relatively obedient, with none clamoring for independence. The current outburst from the Kingdom of Saxony was also understandable.

The recently reclaimed Prussian-controlled Saxon region accounted for more than forty percent of their total area, originally home to a million people, now reduced to just a few thousand.

Any country that suddenly lost 30-40% of its population would be infuriated. Saxony was relatively restrained, merely demanding economic sanctions against Prussia.

…

After placating his allies, Franz turned his attention to the Balkans. Industrial development was out of the question; the French treated the region as a colony, so high-end industrialization was nonexistent.

The remnants of the Ottoman Empire’s industry had already collapsed, first due to the Near East War, then under French colonial rule.

In a way, this was beneficial. Purely agricultural areas were easier to govern, and radical ideas were less likely to spread in conservative rural areas.

Thanks to the French, many hardline elements had been exiled. Although the French left behind many hidden problems, there was little chance for these to manifest.

Franz’s inspection of the Balkans wasn’t a leisurely tour. It was an excuse for major reforms in the region.

With the emperor personally inspecting the area, security naturally had to be tightened, leading local governments to investigate safety issues. This scrutiny exposed many problems.

Under Austrian law, there were many criminal offenders. Regardless of the severity of the crime, any offense meant facing legal consequences.

Why did Austria wait so long to take action in the former French-controlled Balkans? To allow the locals to commit crimes.

The legal differences between French colonial rule and Austrian direct rule were vast. Actions permissible under French rule might be illegal under Austrian law.

Illegal activities had to be punished, so anyone caught had to face severe legal consequences. There was no such thing as collective immunity: if an entire village committed crimes, the entire village would be held accountable; if a whole town did, the whole town would be held accountable.

The French holdovers were undoubtedly removed, and the local ruling class was largely replaced.

Everything was done according to the law, so no one could complain. Regardless of the number of people implicated, the dignity of the law had to be upheld—it was definitely not about suppressing dissent.

Political prisoners spreading illegal ideas were sentenced to lifelong labor, while others were punished according to the severity of their crimes. Instead of being exiled, they were made to stay and work on improving the transportation infrastructure in the Balkans.

Franz was still very hesitant about whether to develop the newly acquired previously French-held Balkan territories. Austria’s resources were limited, and investing in the Balkans felt like it might be a waste.

The newly acquired territory in the previously French-held Balkans was not small, encompassing future Albania, Kosovo, Macedonia, half of Greece, and half of Istanbul.

However, the population was less than three million, with even fewer able-bodied workers. This was largely the fault of the French, as the French government had long realized that the French-held Balkans, being contiguous with Russian and Austrian territory, were indefensible militarily and thus not worth developing seriously.

As a colony, it naturally received no special treatment. To develop the African continent, the French had relocated many people from the Balkans. Compared to the native African population, Balkan residents were considered high-quality labor.

The successful completion of the Suez Canal owed much to the contribution of Balkan labor, which was a major reason for the labor shortage in the Balkans.

Due to Franz’s butterfly effect, the scale of the project increased, naturally leading to a higher demand for labor. Egypt, with a population of only 3.5 million, simply could not provide sufficient labor.

In the later stages, the enormous number of casualties exceeded Egypt’s limits, forcing France and Austria to find solutions from their colonies.

Austria’s African colonies contributed 400,000 laborers, while the Balkans provided another 200,000. The heavy casualties from such a large project were inevitable.

Moreover, the project’s completion did not mean the laborers could return home. Especially after France sold the Balkans to Austria, there were no more ships sent to return them, and Austria did not promptly dispatch ships to retrieve them.

Subsequently, the Franco-Egyptian War broke out, leaving the surviving laborers stranded in Egypt. With no one providing for them, their whereabouts became unknown, and no one could ascertain how many remained.

Austrian troops stationed on the Sinai Peninsula now only protect the Suez Canal. If someone reaches the canal and seeks help, arrangements are made to bring them back on passing ships.

Gradually, around ten thousand laborers have been brought back. Perhaps the harshness of war or the grueling work conditions subdued them, making these individuals quite compliant.

Of course, their gratitude for being rescued also played a role, leading them to accept Austrian rule. Experiencing the harsh realities of the world firsthand highlighted the importance of a strong homeland.

The lack of sufficient labor significantly increased the cost of developing the Balkans. For long-term stability, Franz was wary of introducing foreign populations.

Additionally, with the potential future rise of the Russian Empire, if they aimed to enter the Mediterranean, they would need to take the Dardanelles Strait.

In the event of encountering a negotiable Tsar, trading the Balkans for territories in Ukraine would be highly advantageous.

The Ukrainian borderlands are rich with fertile black soil, making any acquisition there highly valuable. Given the Russian disregard for these areas, the possibility of hoodwinking them is quite high.

Since the land might be used for future transactions, investing in its development now would be wasteful. Maintaining local stability is sufficient for the time being.

Of course, this plan hinges on Russia winning the next round of Eastern European conflicts, reclaiming Ukrainian territories occupied by Poland.

Without such victories, the Russian government is unlikely to develop ambitions for the Mediterranean. Having been previously beaten down, the Russians would be cautious not to repeat past mistakes.