Persian Empire 1845

Chapter 317 Sicily is settled

This case has attracted the attention of both Britain and Russia, but Iran is currently focusing all its attention on Russia, indicating that they are not yet prepared to completely break ties with Britain. In any case, Russia has done its fair share of such things, so one more won't make a difference.

Naser al-Din is meeting with Maximilian's envoy, who should now be called the King of the Two Sicilies.

He was indeed welcomed by liberals, and upon entering Naples, he announced the upcoming convening of parliament. He also announced a series of policies that stabilized local morale. Garibaldi's attack on Naples failed, and with Austria continuing to send troops, they were forced to leave Naples and move on to Sicily.

“It sounds like your new king is quite astute,” Nasser al-Din said slowly. “However, I’m more curious about what impact these reforms will have on our cooperation.”

The envoy's expression turned serious: "Your Majesty, this is precisely the purpose of my trip. King Maximilian wishes to strengthen trade relations with Iran, particularly in the trade of silk and spices. We are willing to offer more favorable tariffs in exchange for your country's support."

Naserdin nodded. "Our country supports your country's legitimate demands. Our two countries should work together to safeguard the security of the Mediterranean."

The meeting with the envoy from the Two Sicilies was not only about trade cooperation, but also about borrowing money from Iran. The Kingdom of the Two Sicilies is in dire financial straits, with a deficit of 4000 million ducats, equivalent to about 800 million pounds.

The kingdom's tax system was unfair and inefficient. It relied heavily on indirect taxes, which placed a heavy burden on the poor. Furthermore, the tax exemptions enjoyed by nobles and the church limited the nation's revenue sources.

The previous Bourbon dynasty was rife with corruption, with rampant embezzlement among government officials. This led to the misuse of public funds, further weakening the country's financial capacity and forcing the Two Sicilies to resort to loans to survive.

Furthermore, the debt of the two Sicilies has exceeded 1 million ducats. The government has been forced to borrow new money to repay old debts in order to keep operating, further exacerbating the fiscal crisis.

To borrow money, Maximilian turned to Iran. As for why he didn't turn to Austria, it was naturally because the latter also had no money.

Naserdin was also facing a dilemma, as the government's finances were somewhat strained, and the confiscated assets in the east had not yet been deposited into the coffers. However, the other side offered many incentives, including the port operating rights in Taranto, the railway construction rights and sulfur mining rights in Sicily, and the establishment of the Bank of Sicily in conjunction with Austria.

The fact that they're offering this much means their finances are truly on the verge of collapse. Maximilian still needs funds to launch his reforms, and he doesn't want to seek loans from Britain and France, so he has no choice but to turn to Iran.

The Kingdom of the Two Sicilies possesses abundant agricultural, mineral, and fishery resources, as well as a favorable geographical location and port advantages. However, due to mismanagement and structural economic problems, these resources have not been fully utilized, leading to a severe financial crisis for the country. It now hopes to obtain a loan from Iran to save itself.

Therefore, Naser al-Din decided to lend them royal funds. At this time, the royal treasury was much more prosperous due to investments around the world, and calculations showed that the royal family could provide 1000 million rials for the loan. Of course, the interest rate would be higher, around 3.5%. The two countries formally signed the loan agreement, and Maximilian would undoubtedly be very pleased with this money. Moreover, the two Sicilies possessed good resources, including sulfur, salt, and marble, and its central location in the Mediterranean controlled a vital shipping route between the eastern and western Mediterranean. This made it a strategically important location for trade and military purposes.

The changes in the Two Sicilies brought an end to Italian unification. Maximilian's reforms and liberalization policies, while winning the support of some people, also exacerbated internal conflicts and aroused the vigilance of neighboring powers.

Garibaldi and his Redshirts did not cease their activities. Taking advantage of the turmoil within the two Sicilies, they secretly organized an uprising, attempting to overthrow Maximilian's rule and continue the unification of Italy.

But Austria pressed its advantage again, unable to tolerate a unified Italy on its southern border. Franz ordered reinforcements to the Venetian region and amassed a large force on the border, sending a clear warning to the Kingdom of Sardinia-Piemont: any attempt to unify Italy would be seen as a direct provocation against Austria. Austrian diplomats lobbied courts across Europe, emphasizing that Italian unification would disrupt the balance of power in Europe.

Napoleon III was displeased with Austria's forceful intervention, but he was also unwilling to engage in direct conflict with Austria. France instead adopted a wait-and-see approach, attempting to gain an advantage in future developments.

Faced with military threats and diplomatic pressure from Austria, King Victor Emmanuel II of Sardinia and Piedmont was forced to compromise. He announced a suspension of all unification efforts and ordered the disbandment of the Redshirts.

At this time, Sardinia occupied the entire north except for Venice, while the Papal States continued to exist under French protection. The political fragmentation of the Italian peninsula once again became the focus of Europe.

Austria's status improved somewhat, but it was still not enough. Franz and Maximilian had to become more reliant on Iranian investment and trade. In Transylvania, Iranian funds were used to build railways and develop mineral resources, especially local coal and iron ore.

After much wrangling, Transylvania finally separated from Hungary. The local Romanians were deeply grateful to the Austrian Emperor. However, Hungary remained resentful of Transylvania's independence, and tensions between the two countries could erupt into conflict at any moment.

Iran's investments in these two regions are second only to the United States, and the US election is now in full swing. The Republican Party and the Southern Democrats are neck and neck, and whoever wins will likely reignite the current problems. Iran, meanwhile, needs to protect its investments, and neighboring Ottoman Russia is one option.

At this time, the Ottoman Empire faced a severe financial crisis. Prolonged wars, corruption, and an inefficient tax system had led to an empty treasury. This was the perfect opportunity for these foreign investors to thrive.

Iran and the Ottoman Empire signed an agreement, securing control of the railway construction in Syria and the Hejaz region. Furthermore, a Mediterranean Trading Company, spearheaded by members of the royal family, was jointly established to handle business between the Ottoman Empire and Egypt. At this time, Iran controlled 99% of the kerosene market and 55% of the silk market in both countries, and even in ordinary textiles, Iran held a 15% share. Importing cotton from Egypt and ore from the Ottoman Empire further strengthened trade relations between the two countries and Iran. If this continued, both countries would soon become economic vassals of Iran.

(End of this chapter)