Persian Empire 1845

Chapter 62 Diplomatic Strategy
Iran's loan request reached British bankers, and the £300 million sum would make them comfortable for a while.

The news reached Istanbul first, and Barings Bank wanted to take the order in one go, but they only had £40 in their accounts and could only watch helplessly as their rival Rothschild Bank won the loan.

Entering the 19th century, Jewish bankers experienced explosive growth. Not only were they numerous, but they were also widely distributed, leaving their mark in Britain, France, the United States, and Central Europe. However, in Iran, Jews did not achieve the same level of prominence, generally engaging in industry and commerce.

Following the allocation of land to farmers, the Iranian government immediately announced laws to increase taxes on sugar and tea, and to impose monopolies on tobacco and salt. These measures are expected to increase revenue by 500 million rials annually.

Alas, given the current situation, let's let the common people suffer for now.

Naser al-Din's foreign hires have begun to play a role throughout the country. Some are exploring for minerals, while others serve as consultants, helping the nation modernize.

“We need to establish normal diplomacy with other countries, so we need to send ambassadors to Britain, France, Prussia, Austria and the Ottoman Empire.”

Nasser al-Din is proposing to the Shah a proposal for normal diplomacy, emphasizing the need to improve relations with Europe. This includes developing relations with countries like Prussia based on an alliance with Britain against Russia, and establishing normal trade with other nations to open up markets for exports.

The friendly contacts between Iran and Britain yielded their first reward: London felt they had too many countries to protect, and in order to better protect more people, they decided to hand Bahrain over to Iran for protection, simply providing them with a foothold.

At this time, Bahrain was not the few small islands that would become known later, but a landmass that included Qatar. It had a population of nearly 100,000, and its economy was mainly based on pearl exports and fishing.

In 1820, Britain signed a treaty with Bahrain, bringing Bahrain under its protection. But the place was so poor that it offered nothing but shelter and pearls.

To demonstrate friendship with Iran, ceding this territory to Tehran was no big deal; compared to Bahrain, the Qing Dynasty in the East and the trade profits from around the world fascinated him more.

Moreover, even if it were given to Iran, Britain could indirectly control it through local investments, and in the event of unrest, they wouldn't have to spend a single penny.

This matter still needs final confirmation, because it was done entirely behind the back of the King of Bahrain, and if he finds out, he will definitely cry and make a scene.

"Sigh, I wonder how Abbas the Great dealt with foreigners? Back then, British merchants were all very respectful."

The answer is simple: when Britain first entered the East, it naturally submitted to the behemoth that was Persia. Now times have changed, and Iran has become the lagging nation, so it naturally needs to catch up.

"While we need to learn from Britain, we can also develop our own land. Oman's territory in Zanzibar is a good example."

Speaking of Oman, they feel a sense of envy. This country once vied with Portugal and Britain for trade and control in the Persian Gulf and the Indian Ocean. At its peak, it stretched across the Strait of Hormuz, extending beyond the coasts of Iran and India, and reaching as far south as Madagascar. The current Sultan of Oman led his army to conquer Mombasa. He built an army and navy fleet, defeated Portugal, a traditional power in the Indian Ocean, and seized all its strongholds north of Mozambique. Under his rule, Oman's colonies in the Great Lakes region of Africa developed, and the country profited from the slave trade.

"The Sultan of Oman is currently in Zanzibar and won't be returning from Muscat. If only Britain would allow us to annex this place."

Pezeshkian then continued, "Shah, there are also Ottoman vassal states on the other side of India, which would be a good option if we could take them over."

Muhammad suddenly realized that things weren't so bad after all; all he needed to do was accumulate strength. He also needed to develop maritime trade, as the number of merchant ships coming from ports like Bushehr should start to increase.

"Naser al-Din, are you saying that Iran wants to improve relations with Prussia?" the Shah began to inquire.

"Yes, Father, Prussia has great potential, especially their army. I think the two countries can improve their relations."

“Yes, that’s true.” Muhammad nodded. “But as you know, France is a world-renowned power, and its army is the best in the world. I tried to get the King of France to send two officers to train the army, but unfortunately, the timing wasn’t very good.”

Muhammad recalled the past, but he quickly stopped himself. He felt he had no confidence in Prussia's potential, but France was indeed not a country worth befriending. This country exuded a ruthless streak; while other countries exiled their kings, France directly beheaded both the king and queen.

Moreover, France is now in dire straits itself. Since last year, France has been in a general recession, and at the beginning of this year, a financial crisis broke out. If no action is taken, then the French king's reign will come to an end.

“Shah, Your Highness is right. We need to build good relations with other European countries, but not necessarily Prussia. Austria is also a good choice. It has a larger population and a larger scale, and our country has been in contact with Austria for two hundred years.”

Pezeszkian preferred to maintain good relations with Austria. Although the Prussian army was strong, Austria was good in other aspects as well. More importantly, Austria had historically had contact with Iran and had even formed an alliance.

During the Ottoman-Persian Wars, Persia invaded the Ottoman Empire five times, each time weakening it to some extent. Furthermore, Persia was able to open a second front while the Ottomans were preoccupied with their European campaigns, thus supporting the Habsburgs. This relieved pressure on the Habsburgs, clearly a strategic move within the alliance.

The first contact between the two sides was over the issue of fighting the Turks. Shah Ismail I maintained communication with Charles V of the Holy Roman Empire and Joseph II of Hungary. Charles V, who later became King of Spain, sent envoys to Persia within three years, hoping to establish an alliance.

The success of the mission is unknown, but Ismail I wrote a letter in Latin to Charles V proposing a military campaign against the Ottomans.

Iran subsequently sent delegations to Europe twice, consolidating the alliance between the two countries. However, with the onset of a period of turmoil, this alliance gradually disintegrated, with only the blasphemous alliance between France and the Ottoman Empire remaining. Restoring the alliance with Austria would be beneficial for Iran.

(End of this chapter)