Chapter 305: Chapter 54, Seizing the Cotton Market
 

Prime Minister Felix handed Franz a document and said, “Your Majesty, considering the rich resources and the considerable number of immigrants in the African Colony, we have formulated an economic development plan for the colonies. Please take a look.”

An economic development plan for the colonies? This concept was very avant-garde; in Franz’s memory, this should have appeared only after the emergence of dominions, where autonomous governments would formulate systematic economic development plans.

In the current mindset of most people, the purpose of establishing colonies was to plunder wealth. Concerning the economic development of the local areas, there was essentially a laissez-faire attitude with no long-term planning.

Despite his doubts, Franz received the document and began to read it seriously. It wasn’t long before he understood why such a plan existed.

It was not because the Vienna Government was particularly prescient or pushed by interest groups; it was simply an instinct of the ruling class.

When the ruling class framed policies, they naturally leaned towards their own interests. Now, it was the nobility who dominated colonization in Africa, and it was also the nobility who reigned over the Austrian Government.

Before the success of the farms and plantations, many were skeptical. Now, with the early plantations beginning to turn a profit and successful examples laid out in front of everyone, the level of attention given had changed dramatically.

In the eyes of many traditional nobles, these were the riches bestowed upon them by God, assets that could be passed down through the family. The better the development of the colonies, the more their wealth would appreciate.

The ruling class naturally wanted to protect its interests. Without anyone’s prompting, the Vienna Government had drawn up a colonial development plan.

Franz asked with concern, “Building a railway from Guinea to the Congo Region, has the terrain been surveyed? Are there any technical difficulties? And how will the funding issue be resolved?”

Alright, he decisively ignored the fact that there were many regions along the way that were not within Austria’s control.

In that era, might made right, and since Vienna had devised this plan, they naturally must be prepared to seize those regions.

Prime Minister Felix explained, “The topography and terrain have already been preliminarily surveyed by the colonial government. Theoretically, our current railway construction technology is sufficient to complete this railway project.

Considering economic needs, this railway must pass through most cities. Including branch lines, the total length could exceed ten thousand kilometres. We plan to construct it in segments, leaving the areas with harsh geographical conditions and high construction difficulty for later.

The construction funding will mainly come from public stock subscriptions, with the government making up any shortfall.”

And to stimulate everyone’s enthusiasm for investment, we plan to grant the land within twenty kilometres on either side of the railway, which is currently unclaimed, to the railway company.”

Franz knew this railway would not be an easy project to complete. Many technologies theoretically feasible could, in practice, result in costs that were exorbitantly high.

The African Colonies were not like the homeland; most regions were undeveloped, and many raw materials had to be imported, which would definitely lead to a significant increase in construction costs.

Given the economic development of the African Colonies, this railway, which served both strategic and economic purposes, might not see a profit for decades to come.

The railway company’s profit would come from the land on either side of the railway. Whoever took on this railway would become the biggest landlord.

This was a strategy learned from the construction of the American railroads. Land like this might be worthless now, but once the railway is completed, its value would increase.

The railway company could simply build a station after a certain distance and reach out to surrounding areas. By solving transportation issues, whether opening plantations or starting mining operations in these areas, a decent return on investment could be attained.

If this were in later times, such a business deal would likely have people scrambling over each other. Twenty kilometres on either side of the railway – that’s forty kilometres in total – upon completion of the railway, ownership of over four hundred thousand square kilometres of land could be obtained.

Even without any resources, just selling timber could recoup the construction costs given such a vast area.

Unfortunately, at this time, whether it was timber or minerals buried underground, none were of much value. Unless deposits of gold or silver were found, whether this investment would be profitable remained an unknown.

After a careful calculation, Franz discovered that this railway project was still a premium choice.

In Africa, the cost of labor could be saved. Even with the Labor Protection Law in place, local natives wouldn’t know where to lodge a complaint.

Of course, even if they found a place to complain, it wouldn’t do any good. Complainants would have to learn German first; otherwise, their cases would not be accepted.

Natives who could learn German wouldn’t be low-level workers; those individuals would have already been promoted to foremen. If they went to complain, they would be the first to suffer repercussions.

Everyone wanted to save face, and it was the foremen who would be responsible for mistreating workers. No high-ranking official would demean themselves by personally going to the railway construction site to whip people.

Basic raw materials such as gravel and sleepers could be sourced locally, and there was no need to purchase cement from outside. A cement factory could be built locally, saving a large part of material costs.

Even if machinery and rails needed to be transported from the home country, the only increase would be the cost of transportation. Overall, construction costs were within a controllable range.

With such a large tract of land owned by the railway company, even if development were poor, profiting just from selling resources was possible.

Franz said calmly, “Since these problems have been resolved, let’s build the railway! However, remember to control costs, the government cannot invest a large amount of financial resources into this railway.

It’s a good strategy to focus on the development of the plantation economy in the African Colony, but we still need to have a focal point.

The Colonial Government can organize experts to conduct field inspections, and determine what crops are suitable for which areas; then, guide everyone on what to plant.”

The Government could compile data on local soil, climate, and hydrology, then list the suitable economic crops for cultivation and distribute this information to the public.

As for what specifically to plant, let everyone choose freely. The government will not force anyone.

Given the current international situation, with the American Civil War being imminent, their exports of cotton and tobacco were bound to be affected, so preparations could be made in advance.”

This railway was consistent with everyone’s interests. Once land transport issues were resolved, more land could be developed, unlike now where development was limited to coastal and riverside areas.

As one of the beneficiaries, Franz naturally would not object. He even wanted to participate and take his share of the profits.

As for when the railway would be completed, or whether it would become an unfinished project, Franz was not worried at all.

The Colony was not the home country; if they encountered areas with harsh terrain and excessive construction costs, it wouldn’t matter if the work stopped for a few years. After all, there was no rush for the deadline.

The main focus on cotton plantations was to capture the American cotton market. Once the Civil War broke out, American cotton exports were definitely going to be affected.

It is worth noting that during this era, American cotton exports were close to 190 million US Dollars, making up two-thirds of the global market share.

In history, the American Civil War led to a cessation of cotton exports, which heavily damaged the United Kingdom’s cotton textile industry. To avoid being strangled, John Bull forcibly introduced cotton cultivation in India.

When the war was over and trade resumed normally, American cotton exports had dropped to 6 million US Dollars and never again regained its dominant position in the cotton market.

There were also many regions in the Austrian Colony suitable for cotton cultivation. If they could capture a third of the American market share, the Colonial Government’s finances would be turned around.