Empire Rising: Spain

Chapter 120: Chapter 108: Industrial Aid

Indeed, things unfolded just as Carlo had anticipated. For these passionate young individuals about to transition from the military academy into the army, nothing is more exhilarating than making their country greater.

Carlo’s presence had already excited the graduates, and under the encouragement of this fervor, the excitement and zeal in the young men’s eyes could hardly be contained, as if they were ready to sacrifice their lives for Spain’s greatness and rise.

Of course, things hadn’t reached that point.

Carlo’s aim was to ensure that these outstanding graduates from the Royal Military Academy remember their mission and whom they should serve allegiance to.

To put on a full show, Carlo certainly wouldn’t leave it halfway. Before the brief graduation ceremony concluded, Carlo personally conferred military ranks of the Royal Spanish Army to more than 400 military academy graduates and awarded them diplomas.

The graduates who performed well in school could receive the rank of Captain, while the remaining graduates were all given the rank of Lieutenant.

Don’t underestimate the rank of Lieutenant, as it commonly holds the role of platoon-level military leader in the Spanish Army.

These 400-plus graduates start their military careers as platoon leaders or deputy platoon leaders, showcasing significant future potential.

Although among the 400-plus, there may not be many Generals, a notable number can still climb to the threshold of field officers, namely Majors.

But to grow from an officer to a General, apart from seniority, certain accomplishments are indeed necessary.

Carlo has high expectations for these officers emerging from the Royal Military Academy, and naturally will fully support their promotions within the army.

As long as they do not make trouble in the army, steadily accumulate their seniority and accomplishments, there will be no obstacles to their promotions in rank.

After the graduation ceremony, Carlo personally inquired about the future destinations of these more than 400 military academy graduates.

Considering the development of his Guard Army, Carlo selected a dozen or so outstanding candidates from these 400-plus graduates for promotion and growth within the Guard Army.

Although the current size of the Guard Army is only a regiment, as the military force Carlo can currently control, it is certain to undergo expansions in the future.

Now, they cannot serve as platoon-level officers in the Guard Army, but they can accumulate certain seniority and experience.

When the Guard Army expands in the future, it will be the true moment for these young officers to lead the troops. The future Guard Army is bound to expand to at least a division, and preparing some military academy graduates now is to fill officer vacancies after the expansion.

The graduates who performed outstandingly and received opportunities to serve in the Guard Army were naturally full of excitement.

Compared to the ordinary Royal Army, the Royal Guard is clearly the more elite force. Every expansion of the Guard Army is carefully selected from the army, so it can be said every soldier in the Guard Army is the elite of the elites.

Moreover, as the king’s personal troops, moving to the Guard Army definitely presents a more promising prospect than remaining in the Royal Army.

Although the Royal Military Academy does not forcibly indoctrinate every graduate, subtle ideological influences constantly occur.

These military academy graduates had long deepened this impression during their extended learning, serving His Majesty the King is naturally the rightful duty.

Of course, Carlo also encouraged the remaining graduates unable to join the Guard Army.

Carlo expressed that regardless of which army they serve, it is all in preparation for the greatness of Spain. Whether Royal Guard or Royal Army, there is essentially no difference, both are trustworthy and excellent Spanish military forces.

Seeing that such subtle indoctrination is indeed effective, Carlo even plans to implement this indoctrination method throughout Spain’s entire educational system, gradually letting the next generation of Spain firmly believe in loyalty to the king and patriotism.

The notion of loyalty to the king and patriotism, naturally, is to be loyal to the king first, and then love Spain as a country. Who comes first is indeed important, as Carlo certainly doesn’t want his arrangements to ultimately serve as a wedding dress for the government.

Of course, such indoctrination cannot be conducted in all schools immediately. It can start with some places as pilots and then expand to the entire country’s educational system, achieving penetration from points to surface.

While Carlo was concerned with his Royal Military Academy’s first graduation ceremony, over on the Spanish Government side, Prime Minister Prim was also constantly following the upcoming relations with the Austro-Hungarian Empire.

Since the two royal families chose to form an alliance through marriage, naturally, the governments of both countries must gradually move closer in subsequent diplomacy.

Franz Joseph I still holds significant prestige in the Austro-Hungarian Empire, and with the marriage between the two royal families, Spain is likely to receive considerable support from the Austro-Hungarian Empire.

Without much thought, Prime Minister Prim instructed the Spanish ambassador to the Austro-Hungarian Empire to strengthen ties with the Austro-Hungarian Empire Government and facilitate a preliminary agreement of cooperation between Spain and the Austro-Hungarian Empire as much as possible.

Compared to Spain, the Austro-Hungarian Empire is naturally a more industrially strong and economically developed country. Naturally, Prime Minister Prim would not miss this great opportunity. He not only planned to seek some industrial technology assistance from the Austro-Hungarian Empire but also intended to borrow some funds from the private capital of the Austro-Hungarian Empire to aid Spain’s industrial development.

Simply put, the Austro-Hungarian Empire would provide money and technology to help the Spanish Government develop its industry and economy.

Would the Austro-Hungarian Empire agree to do this? The probability is actually quite high.

After all, industrial technology assistance and financial support are not offered for free, and Spain also needs to give something in return.

First and foremost is the interest on the loans, which is essential. It’s almost impossible for the Austro-Hungarian Empire to offer Spain interest-free loans, especially considering domestic capital attitudes within the Austro-Hungarian Empire.

Currently, the Austro-Hungarian Empire is facing competition with Russia on the Balkan Peninsula, so it naturally wants to win over more allies.

Although Spain is not very powerful, it still has some function, and the Austro-Hungarian Empire would naturally not resist forming an alliance with Spain.

Through negotiations between the two governments, the Austro-Hungarian Empire Government and the Spanish Government quickly reached a cooperation agreement.

Prime Minister Prim also reported this finalized cooperation agreement to Carlo, which garnered high praise from Carlo.

One can’t help but marvel at how much stronger the economy and industry of the Austro-Hungarian Empire are compared to Italy. Simply in terms of finances, the Spanish Government borrowed over 1.2 billion Crowns from the private capital of the Austro-Hungarian Empire.

The Crown is the official currency of the Austrian Empire, with an exchange rate to the Spanish Pesseta of approximately 1:1.08. The loan obtained from the Austro-Hungarian Empire, when converted to Spanish Pesseta, amounted to a staggering 1.296 billion, equivalent to one-third of Spain’s total fiscal revenue last year.

Of course, borrowing this money isn’t easy. The annual interest on the loan is about 3.1%, with a repayment period of 15 years. If the loan is fully repaid right at the 15-year mark, the total accumulated interest would amount to around 60 million Pesseta.

While the interest is somewhat high, the good news is that there are no additional conditions. The Spanish Government simply needs to repay the loan and all interest within the specified time frame, and it would be satisfactory for all parties involved.

However, if the Spanish Government fails to repay the principal and all interest within 15 years, the annual interest will rise to 5.5% post that period, with an additional overdue penalty of 5.5 million Pesseta for every year delayed.

This requirement is also normal; after all, the Austrian capital doesn’t want its money to end up like water in a basket, all gone to waste.

Despite the involvement of the Austro-Hungarian Imperial Family, since it is ultimately their money, taking precautions is necessary.

Carlo never worried about this aspect. 1.296 billion Pesseta is indeed substantial. Adding in the high interest of 60 million Pesseta, the Spanish Government needs to repay a total of 1.896 billion Pesseta in 15 years.

But considering inflation and Spain’s economic development over 15 years, such interest won’t amount to much.

The investment of 1.296 billion Pesseta will undoubtedly present returns for the Spanish Government far greater than this sum.

Carlo never contemplated the Spanish Government failing to repay this amount and even considered the possibility of repayment within a few years.

After all, large-scale infrastructure development catalyzes rapid economic development. Spain’s total fiscal revenue last year was just over 3 billion Pesseta, and it’s sure to increase this year, potentially surpassing 4 billion Pesseta, which is hardly a concern.

With sustained economic growth, the Spanish Government won’t find itself short of money after a few years, at least in domestic development, eliminating the need for foreign financial assistance.

Apart from this sum of 1.296 billion Pesseta of financial aid, the Spanish Government also signed an aid treaty with the Austro-Hungarian Empire Government concerning industrial technology.

Over the next five years, the Austro-Hungarian Empire will provide the Spanish Government with steel smelting technology, chemical technology, and some military technology to aid in the development of Spain’s industry.

In return, Spain’s advancements in these three technologies over the next ten years must also be shared with the Austro-Hungarian Empire, with both nations conducting joint research.

Furthermore, the Spanish Government signed a trade agreement with the Austro-Hungarian Empire, employing tariff reductions to encourage import and export trade between both nations, strengthening economic ties.

Spain’s overall grain production naturally doesn’t surpass that of the Austro-Hungarian Empire, but with fewer people domestically, the per capita resources are not fewer than those of the Austro-Hungarian Empire.

Additionally, with an extensive coastline rich in aquatic resources, a portion of the grain can be annually exported to the Austro-Hungarian Empire in exchange for foreign exchange used to purchase other technologies from the Austro-Hungarian Empire, further enhancing economic exchanges between the two nations.