Persian Empire 1845

Chapter 298 Trade Patterns
After the Foreign Minister resigned, Abdullah took over the Ministry of Foreign Affairs. This marked him as the fastest-rising official to hold this position.

The Iranian government's every move is influencing other countries' foreign policies toward Iran, and Abdullah is generally considered a conservative, with many believing Iran will continue to exert influence in the region. Britain and Russia, in particular, are paying close attention to the situation in Iran.

Abdullah, who had been inexplicably promoted, told the Shah about Araukania's situation, and then he got the answer he wanted: that he was indeed one of their Iranians, and a highly respected figure in the religious community.

"Shah, is this true?"

"From the characteristics they described, you should know that they are from our country."

Abdullah looked grim. After recounting his conversation with the Chilean ambassador to the Shah, he seemed to be pondering the situation. But Nasserdin thought he was afraid.

"What, you want to make concessions to Chile? That's not something you can do."

Abdullah then revealed his thoughts: "Shah, Chile is very far from our country. We used force against Japan before because we were prepared in Saigon, but if we want to support Araucania, it will take a lot of time. It's not worth it."

His mind raced, calculating the distances by sea from the Persian Gulf to South America. While Chile's copper mines were tempting, Araucanía's missionary activities were like a ticking time bomb, potentially igniting tensions between the two countries at any moment.

Naserdin Shah put down his magnifying glass, a meaningful smile playing on his lips. "Abdullah, do you think I care about that barbaric land of Araucania?" He turned and pointed to the huge world map on the wall, his fingertip tracing the confluence of the Indian and Pacific Oceans. "Abdullah, do you think I care about copper mines? No, what I want is Chile's port in the Pacific."

He turned and pointed to another map on the wall, a railway plan connecting the Persian Gulf and the Mediterranean: "When our railway reaches the Mediterranean and then connects to the Pacific Ocean, Iran will become a hub connecting East and West. I've heard that France has plans to build a canal in Egypt, which could improve transportation options. It's just a pity I won't let them succeed."

Abdullah then understood what the Shah wanted: to restore Iran's dominance in East-West trade, which required wresting control back from Britain. This was no easy task.

With the arrival of 1860 and the advent of free trade policies, the main players on the British economic stage shifted from industrial giants to bankers. Finance and currency, international trade, and raw material advantages constituted the three pillars of British power.

In the world's oceans, the British Navy's dominance was unparalleled. British fleets sailed to all corners of the globe, laden with British steel, coal, and Manchester textiles for export. British manufacturing led the world for decades.

At this time, Britain stood at the pinnacle of the world, holding an absolute monopoly in industry, trade, and shipping. Its industrial share exceeded one-third of the world's total. London was the heart of the global economy, and the world served Britain.

Standing at the pinnacle, Britain considered itself the ruler of the world. So, Britain said, "Let's have free trade!"

Beginning in 1841, Britain significantly reduced tariffs. In 1842, import duties on raw materials were reduced to 5%, and import duties on manufactured goods were reduced to 20%.

Subsequently, the Corn Laws were formally repealed on June 6, 1846, and many industrial goods were exempt from customs duties starting in 1849. The Navigation Acts were also repealed in the same year.

This wave of free trade, spearheaded by the world's superpower, Great Britain, was the first large-scale wave of free trade in world history. Initially, Britain reaped the full benefits of free trade, further strengthening its economy. Britain even proposed unilateral free trade policies, unilaterally reducing or even eliminating foreign trade tariffs. Products exported from other countries to Britain were exempt from tariffs. As for British products exported to other countries, whether or not tariffs were levied was of no concern to the British Empire.

Iran naturally resented Britain's sudden wealth. Therefore, it sought to restore Iran's trading position, and the first step was to attempt to control a portion of the Suez Canal. Due to the isthmus of Suez, direct sea transport between Britain and its eastern colonies was impossible; sailing ships laden with goods from the East could only circumnavigate the African continent, around the Cape of Good Hope. These long sea voyages were fraught with peril; statistics indicate that as many as 600 British ships were lost at sea each year.

The French had identified Britain's Achilles' heel. Charles Magalion, then the French Consul General in Egypt, wrote to French Foreign Minister Talleyrand, pointing out that "opening up the Suez Canal route would cut off Britain's lifeline to India... the impact would be comparable to the devastating blow to Genoa and Venice after the opening of the Cape of Good Hope route." This was one of the reasons why France later launched its expedition to Egypt.

It's a pity that Suez Canal shares are not currently for sale. Otherwise, Nasser al-Din would really like to buy some.

“Shah, if the Suez Canal is opened, it will greatly boost trade. Even if we can’t control the canal, if we control Aden, the canal will become useless.”

Yes, the Suez Canal isn't everything. It needs to be considered in conjunction with the Bab el-Mandeb Strait to maximize its value. That's why Yemen's location is so important.

"You have an idea?"

"It's not a big deal, but based on the information we have so far, Britain and France haven't completely taken control of the area. If we can get in touch with the local tribes, we'll be halfway there."

Yemen is predominantly mountainous, particularly the Shia tribes in the northern mountains, who posed a significant challenge to the Ottoman Empire. Meanwhile, in the south, Britain already controlled the crucial port of Aden. The opening of the Suez Canal would be a game-changer for Britain.

"Historically, our country has also provided assistance to local tribes. They have indeed caused trouble for the Ottomans. Now, let them make things difficult for the British first."

After talking for a while, Naserdin realized he had gone off on a tangent and returned to the issue with Chile.

"I don't know if they are interested in the northern territories. I don't think it's very useful for Bolivia to have a sea outlet."

The Shah planned to use this to shut Chile up; after all, the south didn't have many minerals, but the north had plenty of good stuff. Such an exchange shouldn't be a problem.

“Shah, I will do as you say.”

No sooner had Abdullah finished speaking than Nasser al-Din stopped him, saying, "That's not what I meant. I didn't say anything."

"Oh, yes, yes, it's all my guess. It's all for the better of Iran."

"That's right. Remember, everything is for Iran."

(End of this chapter)