Holy Roman Empire

Chapter 620: Dominance

Taking advantage of the situation wasn’t so easy, especially when it involved national strategic security. President Aquileo Parra Gómez dared not make a hasty decision.

“Apologies, Mr. Nino. If the safety of the Panama region cannot be guaranteed, we will not restart the canal project.”

…

Unable to reach an agreement, Nino frowned as he left. He was certain that President Aquileo Parra Gómez had been tempted when the loan was discussed, but ultimately, he still refused the negotiations.

Indeed, the 100 million francs of interest-free loans were not the French bottom line but merely a bait. Unfortunately, the Colombian government didn’t bite.

After exiting the presidential palace, Nino climbed into a luxurious carriage and instructed the driver, “To the French Embassy.”

The earlier experience made it clear: without official involvement, the Colombian government would not take the risk.

Since tasting the benefits of the Suez Canal, the French financial sector had become keen on canal projects. After careful consideration, they ultimately chose the Panama Canal.

Nino was the executor of the Panama Canal project. He had initially believed that convincing the Colombian government to restart the canal during an economic crisis would be easy. However, he hadn’t expected to fail even at obtaining authorization.

Now, he had no choice but to seek government assistance. Deep down, Nino was reluctant to involve the French government because it meant more people would want a share of the pie.

While the economic crisis was a disaster for many, it was also a feast of capital for a select few.

Having feasted, it was now time to digest. Limited resources and frequent protests made domestic investment in France less appealing, with returns being far too low.

Without the indemnity from the original timeline’s Franco-Prussian War, France’s capital surplus was even more pronounced, and the empire of high-interest loans was emerging.

Loans weren’t handed out recklessly. For instance, in cases like Russia, which dared to default on debts, the French financial sector wouldn’t risk lending them money.

High-quality clients were few, and capital surplus had become a shared problem for both British and French financial sectors. The Panama Canal project, however, was undoubtedly a promising endeavor with a bright future.

French capitalists weren’t monolithic. They had long been divided into factions, with complex and intertwined relationships. If the government didn’t intervene, they would monopolize the project.

Now that government involvement was needed, it meant that major domestic aristocrats and even royal capital would get involved, reducing the share of profits for everyone.

Nino was well aware that monopolizing such a massive project was highly unlikely. In the future, the French government would inevitably need to provide support and protection for the venture.

This was similar to entrepreneurship. The earliest participants in a project secured the founder’s shares, while later entrants represented funding rounds.

The former could acquire large amounts of shares with minimal capital investment, while the latter had to consider paying a premium to obtain a stake.

Unquestionably, acquiring canal authorization marked the first surge in the company’s valuation. Before that, this empty shell canal company was just a placeholder.

…

French Ambassador Tom said, “Mr. Nino, your plan is overly ambitious. You have no real understanding of Colombia. The political situation in this country is extremely unstable.

Perhaps you’ll reach an agreement with them today, but tomorrow there could be a new government. In my three years here, Bogotá has seen thirteen coups where three succeeded, and ten failed.

Based on Colombia’s history, I’ve done the math. From 1830 to now, they’ve changed presidents 31 times, with an average government tenure of less than a year and a half.”

Nino shook his head, “Ambassador, the instability of Colombia’s government has nothing to do with us. Do you think they would dare to deny the agreements they’ve signed with us?”

Nino had no interest in Colombia’s political turmoil. During this era, most South American countries were politically unstable, but no matter how often governments changed, no one dared to infringe on the interests of the great powers.

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To him, Tom’s words seemed like a way to inflate his own importance, trying to prove his value and secure a share of the benefits.

French Ambassador Tom frowned, “Mr. Nino, it’s not as simple as you think. While they might not dare to openly deny agreements signed by previous governments, they can make the terms effectively void.

Without cooperation from the locals, are you certain the Panama Canal could operate smoothly? Don’t forget how much labor the Suez Canal required.

If you have to hire workers from abroad, think about how much that will increase costs. You should understand the implications.

Moreover, the bigger issue isn’t even the Colombian government, it’s the Austrians.

In recent years, Austria has been increasingly infiltrating Colombia, particularly the Panama region, where half the population is of German descent.

France might be able to intimidate the Colombian government, but it won’t scare Austria. If you don’t handle these issues properly, once you’ve dug the canal, Austria might swoop in to reap the rewards.

All it would take is a well-orchestrated coup, and Panama could become an Austrian colony. Then, your canal would be on Austrian territory. Are you sure you’d still retain control over it?”

Nino’s face changed dramatically. If the canal ended up being built on Austrian colonial territory, forget about retaining control, recovering the investment costs would become questionable.

After pausing to collect himself, Nino asked, “If Austria’s influence here is so great, why hasn’t the Colombian government taken any action?”

French Ambassador Tom shook his head, “It’s not that the Colombian government hasn’t acted, it’s that every government that dared to act was overthrown.

Right now, multiple warlord factions in Colombia are receiving Austrian support. If the government dares to make any rash moves, they’ll be removed from power immediately.”

It wasn’t just Austria supporting proxies, France also had its representatives in the region. However, Austria’s Central American colonies were much closer, giving it a geographical advantage that allowed it to dominate.

The word “cooperation” briefly flashed through Nino’s mind. However, given Austria’s overwhelming local power, any collaboration would likely see control of the canal falling entirely into Austrian hands.

The financial capitalists backing Nino weren’t just after a canal, they wanted the broader benefits it would bring.

Controlling this golden waterway would mean controlling the economic lifeline of much of the Americas. With the canal as a hub, French capitalists could extend their reach into countless industries.

Anyone who dared refuse their investments would face retaliation. Even a minor blockade at the canal could ruin a business.

This would be especially devastating for shipping companies operating on Pacific routes, leaving them with no room for resistance.

The French financial world was playing a grand chess game. If the plan succeeded, they would control the economic lifelines of multiple countries in the Americas.

After hesitating for a moment, Nino promised, “Ambassador, what solutions do you have to address our current problem? Rest assured, we would never let a friend suffer losses. Once this is successful, there will definitely be generous rewards. We’ve always believed you have the potential to become France’s Foreign Minister.”

This was a blatant temptation. Not only money but also a promise of support for his career, suggesting he could rise to the position of Foreign Minister.

Of course, the latter was just an empty promise. While the capital forces backing Nino were substantial, they didn’t have the power to dictate the appointment of a Foreign Minister.

Their “support” would merely amount to helping build momentum and increasing the likelihood of success.

Tom’s heart leaped with joy but quickly returned to reality. While the promised rewards were enticing, the task itself wasn’t easy.

He replied candidly, “Mr. Nino, for the canal project to proceed smoothly, it would be best to bring Austria on board. Given our current capabilities, completing this task alone will be very difficult.

Of course, finding other partners is also an option. If the British were willing to go all in, a joint effort between our two countries might succeed, but the price we’d have to pay would be much greater.”

Upon hearing this, Nino’s brow furrowed, and his expression turned grim.

France’s power in the Americas was insufficient to compete with these two rivals. Whether partnering with Austria or the British to develop the canal, France would not hold the dominant position.

Without control, merely receiving a share of the canal’s profits, even though the returns would still be good, it was not worth the immense effort they were putting in.

After a moment of silence, Nino said, “Ambassador, this matter is significant, and I must report it to my superiors. Let’s temporarily set aside the idea of joint development.

For now, we need your help to secure canal development authorization from the Colombian government as quickly as possible.”

“No problem. Supporting enterprises in overseas endeavors and securing maximum benefits for France is my duty,” replied French Ambassador Tom.

…

Leaving the embassy, Nino felt even more conflicted. Based on the current situation, the original plan was no longer feasible, and now he had to seek partners to share the burden.

The most suitable options, Britain and Austria, were ruled out first, leaving few remaining choices for potential collaborators.

Spain was barely a possibility, given its notable presence in the Caribbean. However, Spain was already in decline, and even a Franco-Spanish alliance might not be enough to intimidate Austria.

Moreover, the political implications needed to be considered. If France and Spain aligned, it would trigger alarm across Europe, with Britain likely being the first to react.

The French government would not risk driving Britain and Austria closer together just to promote the Panama Canal project. Without the French government’s backing, the plan stood no chance of success.

Aside from these options, the only other influential powers in the Americas were the United States of America (Union) and the Confederate States of America.

Bringing these two countries on board seemed like a viable solution, but it was impossible.

By now, the enmity between the Union and the Confederacy was irreconcilable. If their governments dared to cooperate, they would face accusations of treason at home.

On the international stage, whatever the Union supported, the Confederacy opposed, and vice versa. For the sake of political correctness, both sides opposed each other purely out of principle. Aligning with one would inevitably put them in opposition to the other.

This division was precisely what Britain, France, and Austria sought to maintain. The animosity between the Union and the Confederacy was fueled not just by their own history but also by the covert maneuvering of these three powers.

Furthermore, neither the Union nor the Confederacy would join blindly. Without sufficient incentives, they wouldn’t even consider it.

Undoubtedly, these benefits would have to come from the canal company. Dilution of shares would be inevitable, and the proportion would not be small. They might even have to give up some control.

Essentially, the Panama Canal project was a scheme to fleece the countries of the Americas.

The more Nino thought about it, the more his head ached. Given the current circumstances, securing control of the Panama Canal seemed an incredibly difficult task.