Time was a butcher's knife. No matter how much Prussia and Russia persisted, they had no choice but to bow to time.
After more than two months of negotiations, on July 18th, 1881, Prussia and Russia finally reached an agreement reluctantly.
It was really reluctant. Both the Tsarist government and the Government of Berlin were not satisfied with the agreement.
However, there was not much food left at home. In order to avoid starvation, they had no choice but to compromise.
The end of the war did not mean that they did not have to spend money. Pensions for the dead and disabled soldiers, arrangements for the retired soldiers, and post-war economic reconstruction all required a large amount of funds.
Prussia and Russia did not dare to spend all their money. The government did not have emergency funds, and it was not as simple as financial bankruptcy.
If they did not arrange for the soldiers, there would be a big mess. Mutiny was a small matter. The most frightening thing was that someone would raise their arms and call for a "revolution".
Britain, France, and Austria made it clear that the international community would only consider providing assistance after a truce treaty was signed.
These days, the three countries were the international community. The three countries had the same stance, and the rest of the countries combined were not enough.
Post-war reconstruction could be delayed, but disarmament and resettlement were imperative. Without the financial support of the international community, even the Russian Empire could not withstand the war.
Both Prussia and Russia made concessions, or rather, the three countries made concessions for them. The contents of the agreement:
1. The Kingdom of Prussia admitted defeat and took responsibility for the war;
2. Cede the regions of East Prussia, West Prussia, and Poznan to the Russian Empire;
3. The Kingdom of Prussia will pay 360 million DND to the Russian Empire as war reparations, paid over 30 years at an annual interest of 6%;
(Note: The first payment will be 60 million DND. After that, interest and 1798652 DND will be paid every month, totaling 707.51 million DND.)
4. After the Government of Berlin pays the first batch of reparations, the Russian Army must withdraw from the territory of the Kingdom of Prussia within a month;
5. Both sides will complete the exchange of captives within a month; no ransom will be collected;
…
The apologies and the like were not the main point. The real core was these few, especially the ceding of land and reparations.
The land had already been taken over by the Russians, so there was no need for a handover. Now, all that was left was money. It was Hannover's turn to play.
On July 19, 1881, the Government of Hanover and the Government of Berlin jointly announced the Land Transaction Agreement between the Kingdom of Prussia and the Kingdom of Hanover, which stipulated:
The Kingdom of Prussia sold the duchies of Schleswig and Holstein and the territory west of the Elbe River to the Kingdom of Hanover for a whopping price of 210 million pounds.
Before everyone could recover from this shocking news, on July 20, 1881, the Hanoverian government and the British financial community signed a 150 million pound loan agreement. (Approximately 300 million Divine Shields)
With the 150 million borrowed and 60 million raised by themselves, at the end of July 1881, the Government of Hanover and the Government of Berlin completed the most expensive territorial transaction in history.
It should have been a gratifying thing to get the money, but unfortunately, the money only passed through the hands of the Government of Berlin.
The 150 million pounds provided by the British were to be used to prioritize the repayment of the debt owed by the Government of Berlin. Obviously, this was not enough, so it was directly gone.
It was obviously a tyrannical clause, but unfortunately, there was no place to complain, so the Government of Berlin could only accept it.
The remaining 60 million pounds were in their hands. After paying the first batch of war reparations to the Russians, the number immediately shrunk by half.
The last 30 million pounds, the Government of Berlin still could not keep it. The disarmament and compensation for the casualties were almost spent, and no one knew where the funds for post-war reconstruction were.
One loan for two, while reducing the risk of funds, at the same time earning two sums of interest. The British let everyone know what the financial operation was.
…
In the Palace of Vienna, looking at the British operation, Franz could not help but want to imitate them, but in the end, he helplessly realized that there was no one to do it on.
Putting down the document in his hand, Franz sighed and said, "The Government of Hanover was able to raise 60 million pounds on their own. It seems that we have underestimated their financial resources all along. These small states in the German Region may be much richer than we thought."
Prime Minister Felix replied, "The performance of the Government of Hanover is indeed a bit unexpected, but this is also reasonable.
After entering modern times, the economy of North Germany developed rapidly, especially after taking over the Rhineland region. The overall economy of the German Federal Empire went up a level.
Hanover controlled the central government. Although it was not able to control the small states in the country politically, it still influenced each other economically.
The Government of Hanover raised 60 million pounds, which could also be considered as the Government of the German Confederation raising 60 million pounds.
This was the result of the central government not having enough control over the local areas. Otherwise, with the economic situation of the German Federal Empire, this number would have no problem doubling.
However, the price of this territory transaction is still too high and has greatly exceeded the actual value. It may not be possible to rely on these new territories to recoup the cost in a hundred years.
For a long time in the future, the Government of Hanover will have to bear a huge debt, which will greatly affect their economy. "
The German Federal Empire occupied the most prosperous area in the German Region, and the natural conditions were very good. More than 70% of the original industry of the two empires was here.
With such a foundation, as long as the ruling class did not do anything stupid, the economy would not be too bad.
It was precisely because of the developed economy that there were so many people in the Government of Austria who could not forget this place.
If it was really a remote and backward place, with the cultural traditions of Europe, it was estimated that people would have long forgotten this place.
The most typical example was the Swiss region, which was also the ancestral land of the House of Habsburg. It was just that because the mountainous area was too poor, people chose not to see it.
The Foreign Affairs Minister Wesenberg said, "Although the price is a little high and they are still carrying a huge debt, the Kingdom of Hanover is not losing out.
They paid such a huge economic price, and the Government of Berlin must have made concessions in other areas.
If there are no accidents, the two countries have secretly reached an agreement, and they are only waiting for the right time to announce the news to the public.
In theory, after the unification of Germany and Prussia, they will have the opportunity to truly control the German Federal Empire and establish the North German Empire.
After the unification of North Germany, these debts are nothing. "
Everyone said it was expensive, and Franz was embarrassed to say it was cheap. Reality told him that when he did not agree with the majority, it was best to remain silent unless it was necessary.
Everyone's experiences were different, so they had different ways of looking at problems. It was normal for them to come to different conclusions.
Franz waved his hand and said, "Well, it doesn't matter whether Hanover made a profit or a loss.
Their so-called big plan still needs a long time to be implemented, and we have plenty of time to think about it.
Now, everyone, let's discuss the loan application of 50 million Divine Dukes from the Tsarist government. "
War was really scary, and the Russians were still short of money after receiving the war reparations.
It was not that the Tsarist government was wasting money. Although the amount of reparations Prussia had to pay was not small, the first installment was only 60 million Divine Dukes.
This number seemed large, but it was insignificant when compared to the millions of troops mobilized by the Tsarist government, as well as the number of people killed and injured in the war.
Most of the soldiers in the Russian Army were paid very little, almost negligible. They only received a small amount of subsidies during times of war.
Now that they had won the war and wanted everyone to be discharged, a sum of severance pay was indispensable.
Based on the calculation of 3 million Divine Dukes per person, 60 million Divine Dukes would be gone in one fell swoop. Even with a 50% discount, it would still be 30 million Divine Dukes.
In fact, 30 million Divine Dukes was definitely not enough. The treatment of officers was not comparable to that of ordinary soldiers, and the standard of severance was naturally different.
Reducing the standard?
This was already a huge underestimation. In Austria, this was only two months' salary for an ordinary worker. They had sacrificed their lives on the battlefield, and this price could be said to be extremely low.
The survivors had been dealt with, but the dead and injured could not be treated so carelessly. Otherwise, no one would work for the Tsar.
1,433 million dead and 671,000 injured would be impossible to deal with without a few hundred million Divine Dukes. Fortunately, it could be paid in installments. Otherwise, the Tsarist government would not be able to gather the sum even if they went bankrupt.
Finance Minister Carr suggested, "Your Majesty, the financial situation of the Russians is very bad. Even after receiving the war reparations from Prussia, they are still not out of the crisis.
If we give them loans now, there is still a huge risk. Unless the Tsarist government can give us conditions that we can't refuse, I don't recommend accepting loans from Russia. "
It was not just a huge risk; it was a huge trap. The end of the war did not mean the end of the crisis.
Without the orders brought about by the war, the excess production capacity in the market was consumed. The inventory of enterprises was constantly rising, and the economic crisis was already brewing.
Once the crisis broke out, the Kingdom of Prussia would definitely not be able to withstand it. The Government of Berlin would declare bankruptcy, and the Russians would not receive the war reparations.
No one knew if the Tsarist government could still hold on after this income was cut off.
Foreign Minister Wesenberg objected, "Purely from an economic point of view, it is indeed very unwise to lend to the Russians now.
But from another perspective, this is also an opportunity. We can offer higher terms in order to get more benefits.
If the Tsar is willing to fully support us in annexing the Osman Empire, I think this loan can still be given. "
"Looting a burning house." This word appeared in Franz's mind and could not be erased.
The Osman Empire was Austria's next strategic goal. It was easy to defeat the Osman Empire, but it would be difficult to annex them.
The United Kingdom, France, and Russia were the biggest obstacles. Due to geopolitical reasons, the Russians had more say in this issue than the United Kingdom and France.
Before this, Franz's plan was to divide the Osman Empire with the Russians, but how could dividing be compared to monopolizing it?
Monopolizing the Osman Empire would not only connect the mainland with the Middle East, but it could also extend Austria's influence to Central Asia. It was of great strategic significance.
Soon, Franz came to his senses. Such a great benefit wouldn't be so easy to swallow.
The Russians were not fools. Having the United Kingdom as an opponent was enough for them. If they added Austria, it would be even more difficult for them to recapture Central Asia.
Franz shook his head, "We can test the Russians, but don't have too much hope. The Tsarist government is not at the end of its rope yet."
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