Chapter 407: Chapter 94, Arms Race
 

Europe’s political landscape is in turmoil; how could the United Kingdom possibly be absent? France and Austria’s conflict not flaring up has been a great disappointment for the London Government.

However, Prime Minister John Russell was not worried, for where there is a first, there will be a second. Regardless of their pretext, the French reaching into Austria’s backyard is a fact.

The seeds of conflict between the two nations have been sown, and for the British, that is enough. Fomenting discord between France and Austria, ensuring they oppose and constrain each other, is the option most in line with British interests.

Actually having them go to war would not be a good thing. Or to put it another way, the London Government wouldn’t want to see any war that disrupts the balance of Europe.

Especially at the point when the Russian Empire is about to decline, a war breaking out between France and Austria would result in a new hegemon on the European Continent, regardless of the victor.

Any European hegemon is Britain’s greatest enemy; there is no need for justification, as the London Government’s national policy has always been consistent.

At 10 Downing Street, Foreign Minister Reslin walked into the meeting room with a smile on his face, clearly in a good mood.

John Russell spoke evenly, “Everyone is here; let the meeting begin. Sir Reslin, do you have any good news?”

Foreign Minister Reslin responded with a smile, “We have just received news that the Tsarist Government is inclined to allow the unification of the Nordic three countries.”

This is something the London Government has wanted to do for years but has not managed to achieve. The unification of the Nordic three countries is definitely not good news for the Russian Empire.

Just promote nationalism to them, and once unified, the North will inevitably stand against the Russians. After all, who can ignore their own glorious history?

Flip through the history books, and you will find that vast territories like Finland and the Baltic region were once their lands, now occupied by the Russians. Can the radicals sit still?

Of course, the population of the Nordic three countries is not large, and they are not a threat to the Russian Empire, but they can still distract some of Russia’s focus.

This is why the British are willing to support them; regardless of how the Nordics develop, they will not affect Britannia’s interests.

Under normal circumstances, the Russians would not allow the Nordics to unify. Doing so now means that the Russians can’t hold on much longer and are forced to compromise.

John Russell, uncertain, asked, “Could the Russians be intending to entice Sweden and Norway into waging war against the Prussians, to alleviate their pressure on the battlefield?”

Foreign Minister Reslin answered, “That would be the ideal situation, but in reality, the Tsarist Government should be very aware that this scenario is almost impossible.

The Berlin Government has already made concessions, promising to withdraw from the Jutland Peninsula, with territorial demands on Denmark limited to two German Duchies.

For Sweden, this is already sufficient. If those two German Sub-States also joined, Denmark’s voice would be too strong, leaving Sweden without a leading role.

The Tsarist Government only wants to stabilize Sweden now. Otherwise, with war reigniting in the north, they really won’t be able to hold out. We can preliminarily conclude that the Russians are already running on fumes.”

That the Russians are spread thin is the best news. After this wave, for decades to come, Russia won’t be able to trouble them anymore.

If the following plan proceeds smoothly, they might be able to eradicate this threat once and for all.

Prime Minister John Russell made his decision without hesitation, “We will exert our greatest influence, delivering a fatal blow to the Russians.

Increase our support to Prussia, hasten the Ottoman Empire’s entry into the war, and stir up action in the Far Eastern region.

If we can incite Sweden to stab Russia in the back, our plan would be perfect.”

Clearly, John Russell’s expectations for Sweden’s participation in the war are not high. If the Russians continue to oppose the unification of the Nordic three countries, then it is very likely that the Swedes would stab Russia in the back.

Now it’s almost impossible. The Swedish Government must consider the feelings of the Danish people. Since Denmark and Russia are allies, their common enemy is the Kingdom of Prussia, which means Sweden cannot possibly collaborate with Prussia.

…

“Since the implementation of the two-power standard, the Royal Navy has faced severe challenges. At present, our naval funding is seriously insufficient, and we can no longer suppress the navies of both France and Austria.

Recently, the Paris Government allocated an additional 120 million Francs to shipbuilding funds, with the specific plans for shipbuilding still unclear, but clearly aimed at our two-power standard.

The Austrians have not yet responded, but according to past practice, the Vienna Government will allocate a budget amounting to eighty or ninety percent of France’s shipbuilding funds.

Our budget for shipbuilding this year has already been exhausted. To maintain our current advantage, we must allocate an additional ten million British Pounds,” said Navy Minister Edward.

At this time, ten million British Pounds is not the same as ten million British Pounds of later times. There are fewer than ten countries in the world with an annual fiscal revenue exceeding ten million British Pounds.

No one other than the British Royal Navy would dare to ask for so much shipbuilding funds at once.

France and Austria could indeed produce the funds, yet as predominantly land powers, they also needed to address the needs of their armies while expanding their navies.

Had it not been for the British calling for a two-power standard, the Paris Government would not have suddenly increased shipbuilding funds, triggering this arms race.

In this era, the combined tonnage of the France-Austrian Navy was almost equal to that of the Royal Navy, with even a greater number of ironclad ships.

The British taunts made Napoleon III feel insulted, and even Franz in Vienna couldn’t tolerate such provocations.

Oh, it wasn’t just their personal feelings—more accurately, it was a sentiment shared by the people of both nations.

Everybody cared about saving face, and the radical groups among the populace were clamoring to surpass the Royal Navy. Well then, it was settled—an arms race it was!

Napoleon III needed a distraction for the public, to prevent them from dwelling on the unpleasant matters of the Two Sicilian Kingdom.

Napoleon III instigated the arms race with confidence. Over the past dozen years or so, the French economy had been on the fast track, and last year’s fiscal revenue exceeded the British by more than eighteen million British Pounds (including the Kingdom of Sardinia).

Of course, this was just the domestic fiscal revenue. If the colonies were factored in, the British were still more formidable, with just India’s revenue amounting to over fifty million British Pounds, a testament to the British’s largess.

However, Napoleon III wasn’t intimidated; he wasn’t aiming for the French Navy to surpass the Royal Navy right now. As long as the navies of France and Austria together could break the British two-power standard, that would suffice.

Behind this act of defiance was also the matter of international political status. If the two-power standard of the Royal Navy were to be realized, the British would gain absolute dominance in overseas affairs.

This was something neither France nor Austria could tolerate. As the second-ranked global naval power, the proud Parisians petitioned daily. Napoleon III had no choice but to step forward.

Finance Minister Agawar glared fiercely at Edward, silently cursing his entire household in his mind.

In his view, the Ministry of the Navy was typical of those who didn’t handle household affairs and didn’t know the cost of essentials. The “two-power standard” seemed enticing at first glance, but in reality, it was nothing but trouble-seeking.

The British were indeed the strongest financially in the world, but France and Austria were no weaklings either, and the gap in power was not so vast.

Just like in the original timeline, where the British’s two-power standard was challenged, here the situation was even more pressing.

Either France or Austria had the potential to challenge the Royal Navy’s dominance. If it weren’t for the need to develop their armies, the Royal Navy’s maritime hegemony would have already been unstable.

With a grim expression, Agawar asserted, “No, this year’s financial budget has already been set. Suddenly adding ten million British Pounds to the budget is impossible for the Treasury. If you want funds, go convince Parliament yourself!”

Ten million British Pounds was indeed a substantial sum, but for the London Government, it was actually manageable. Clearly, Agawar was not going to cut corners and scrimp for the sake of the Navy.

Minister of the Navy Edward argued angrily, “The Royal Navy is critical to the fortunes of Britannia. If we cannot ensure an absolute advantage, once France and Austria catch up, we’ll regret it when it’s too late!”

There were no more excuses; the main goal of the Navy to promote the “two-power standard” was to secure funding. The threat of the France-Austrian Navy was actually quite remote.

Both were colonial empires whose navies were scattered across the globe, with every region suppressed by the Royal Navy—there was no real threat to speak of.

Even if the France-Austrian Navy joined forces, in reality, they were mostly no match for the Royal Navy. The issues with naval coordination on the battlefield made them unfit to challenge the Royal Navy when fighting independently.

Finance Minister Agawar didn’t play along, “So, go ask Parliament for the money! The Treasury does not have this budget now. To increase the budget by a substantial amount suddenly requires parliamentary approval.”

Without the support of the Cabinet, the Ministry of the Navy would not find it easy to persuade Parliament. Even if they reasoned and appealed emotionally with those lords, by the time they agreed, the French-built warships would already be in service.

Just as Edward was about to retort, he was stopped by Prime Minister John Russell. Disputes over funding were common, and almost every year the Treasury had to spar with various departments.

Agawar’s behavior was not wrong; he was simply following procedures. A sudden increase in the Navy’s budget certainly required a round through Parliament. It was also in accordance with the rules for the Treasury to be reluctant to request the funds from Parliament itself.

“The issue of increasing shipbuilding funds will be submitted to Parliament by the Ministry of the Navy. The date is set for next Monday, and we will support the motion.

Sir Edward, the Ministry of the Navy must be fully prepared to face the inquiries of the Members of Parliament. Any problems with that?” John Russell said.

This was a necessary procedure. As long as Parliament agreed to increase the budget, the Treasury could resolve the funding issue through loans, bond issuance, or tax increases.

The arms race was just beginning, and the London Government hadn’t yet felt the pressure. It wouldn’t be long before they would find it not so easy.

Minister of the Navy Edward replied, “No!”

…