Chapter 294: Suez Canal Equity

Royal palace of paris
Napoleon III couldn't say for sure: "Auvigne, are you sure that the Vienna government is really willing to join us to lead the canal project, rather than deliberately disrupt it?"
Foreign Minister Auvergne replied affirmatively: "His Majesty, the Vienna government should be sincere and they are willing to contribute to the excavation of the Grand Canal with us.
No one would joke tens of millions of francs, as long as they invested in the Canal Company, they would support us for their own benefit.
However, the Austrians have always been conservative. They were worried that according to our plan, the final traffic volume could not meet the demand, so they asked to deepen the canal design depth by four meters. "
Napoleon III rubbed his forehead and asked, "I remember that the design depth of the Canal Company was nine meters, and the world's largest ships were freely navigable. The Austrians were not enough?
Don't they know that every additional meter will increase huge investment? The increase of four meters now means that the budget will be significantly increased. "
The planned funding for the Suez Canal is 200 million francs, which is already challenging investors' affordability. Before the canal was opened, no one knew that this golden waterway would be so profitable.
Now most people don't think that the Suez Canal can be profitable. After all, there are free shipping lanes to go, and the Suez Canal can't be too expensive.
With such a high investment, no one can guarantee how long it will take to recover the cost. Capitalists naturally have little interest in such long-term investments with uncertain returns.
Auvergne explained: "We have passed this issue many times with the Vienna government. But they are thinking more about strategic value, which has something to do with the emergence of armored ships.
The Vienna government believes that the tonnage of ships is about to rise sharply. The newly established Austrian Royal Shipyard is already building 10,000-ton freighters.
It is said that there were designers who raised the tonnage design of the ship to 20,000 tons. The Vienna government believes that the mainstream ships in the future will all exceed 20,000 tons, which is not a technical problem anymore.
The Vienna government believes that the tonnage of warships will also increase significantly. If investment is saved now and the future traffic volume is insufficient, the strategic value of this canal will no longer exist. "
Napoleon III fell into meditation. With the arrival of the iron armored ship, the keel that restricted the size of the ship was no longer a problem. In theory, a large increase in the tonnage of the ship was inevitable.
However, the larger the ship is, the better it is, and the market demand must be taken into account. The subsequent million-ton giant ships were useless in this era, and there were not so many cargoes loaded inside.
However, the 10,000-ton ship has already been competitive in this period. At least Austria's export of agricultural products needs such a big guy.
Secretary of the Navy Dike said, "Sir, from a strategic point of view, the traffic volume of the Suez Canal is indeed as large as possible.
If Austria joins, the funds for the Grand Canal will be shared between the two of us, and the problem is not too big. Even if the private sector can't raise it, we can still buy the government. "
There is no doubt that the Paris government's plan for the Suez Canal also has a strategic value that exceeds economic value, otherwise they would not have lost money at all.
After hesitating, Napoleon III said arrogantly: "Just add, since Austrians dare to invest in such a large amount, we have no reason to be afraid!"
The strategic vision of the French in this era is really not bad. The Suez Canal and the Panama Canal were first developed by them. Unfortunately, they were not able to keep it.
...
On May 10, 1858, the two countries signed the "Suez Canal Cooperation Letter". The treaty stipulates that each country will invest half of its capital to dig the Grand Canal, with the French as the initiator country holding 51% and Austria 49%.
There's nothing to say about this. France's initial investment for the Suez Canal is not small. Dominance is inevitable.
With the design changes, the canal budget was raised to 340 million francs. Franz is dismissive of this amazing number, not to mention 340 million francs, even 540 million francs may not be enough.
Of course, with free labor, construction costs have been saved by more than half, and the final cost is not clear to Franz.
After all, the two countries are now joining forces. They will not be forced to abandon the use of slave labor because of the British's destruction, which will greatly increase the construction cost.
Looking at the agreement in his hand, Franz smiled and said, "Hurry up the French and let them start work as soon as possible."
Since joining the canal project, it is naturally impossible to grind like the French in history. It took more than ten years to dig the Grand Canal.
"Yes, Your Majesty!" Metternich replied.
Chancellor of the Exchequer Carl asked, "Your Majesty, are we investing in the Canal Company by learning the French and raising funds in the capital market?"
The Suez Canal is a steady investment, but only a few people can see it.
In the eyes of most people, this is a long-term investment with unknown returns and is not so favored in the capital market.
Historically, the Suez Canal has been shut down due to insufficient funds. If it was not for the support of the French government, the canal company would have gone bankrupt before the canal was dug.
Franz, who is accustomed to making a lot of money, naturally will not know that the whole world knows that others are unwilling to invest, and he just picks up the cheap.
In view of the dangers of eating alone, Franz decided to let the government take the lead, or else the future financial resources would go into the royal pockets, which would easily cause criticism.
"The economic crisis has not passed yet, and the market's tolerance is limited. The government subscribes for half and the remaining shares are put into circulation."
There is no doubt that all the shares in circulation need only the right to dividends, and the right to vote is still in the hands of the governments of Vienna and Paris.
There was an inflection point in history. The Suez Canal, which was dominated by private capital, is now full of political significance.
London
The joint excavation of the Suez Canal by France and Austria has brought a huge impact on the British government's railway plan. After all, the cost of water transport is lower.
Once the Suez Canal is opened, the geographical advantage of the British will decline, and France and Austria will enter the Indian Ocean closer than the British Isles.
The Prime Minister of Granville is not only concerned about the Grand Canal, but also the improvement of relations between France and Austria, which makes the London government uncomfortable.
Unlike in history, the Russians have not lost continental hegemony, and France and Austria are only potential competitors, not to the point of directly competing for hegemony.
Without enough interest, the two governments will naturally restrain each other. Austria is now much stronger than in history. It suffered a loss in the Near East War, and the French became cautious.
"Dear friends, the relations between France and Austria are heating up. This has brought a huge impact on our European balance strategy. What do you think?"
Chancellor of the Exchequer John Russell said: "Her Prime Minister, you are too sensitive.
France and Austria have also cooperated on the issue of the Suez Canal. There are still many conflicts elsewhere, and it is unlikely that the two countries will actually join hands. "
There are indeed conflicts between France and Austria. For the time being, European hegemony does not mention that the two sides have clashed on the issue of African colonies.
It's just that such a small conflict exists between almost all colonial empires, and has not risen to the point of hostility between the two countries.
Foreign Minister Thomas analyzed: "Under the Vienna system, relations between the two countries have been very good over the past few decades.
It was not until the February Revolution that relations between the two countries became cold. The breakdown of relations between the two countries is still in the German reunification war. Now they are standing together because of common interests.
However, this does not affect our interests. As long as France and Austria have the ambition to conquer Europe, the relationship between the two countries will sooner or later break.
Even the Russia-Austria alliance, which is now close to each other, will part ways sooner or later on the issue of continental hegemony. I don't believe that the Vienna government has no ambitions. "
This is a real problem. Allies are unreliable in the face of interests. Unless the strength of various countries has been balanced, sooner or later they will go to confrontation.
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