African Entrepreneurship Record

Chapter 429: Chapter 106 Different Positioning

Regarding the procurement of East African warships, Ernst himself is not one to make a loss in business. This time, Grand Duke Ferdinand went to Austria to investigate, primarily to first add East Africa’s preferred products to the shopping cart.

Ernst, on the other hand, will wait until the economic crisis erupts before beginning procurement work. Historical changes have made Ernst unclear about when this global crisis will occur, but the cyclical nature of economic crises determines that this crisis will certainly occur within the current time frame.

So Ernst continued to say to Grand Duke Ferdinand: ”The issue of purchasing ships cannot be rushed. There is no room now, so we can wait. After all, my requirement is to complete the expansion of the East African navy before 1880, which means seven years of ample time, which means a bit more hard work for you, Father-in-law, in selecting warships.

We cannot blindly purchase ships produced by Austria-Hungary but must raise more requirements based on the characteristics of the East African waters. These need to be fully demonstrated. Father-in-law, you can discuss this with your former subordinates, now senior officials in the Austrian navy. After all, the situation in our East African waters is different from the Adriatic Sea, which means that the strategic positioning of the two countries’ navies will have some differences.”

The Austro-Hungarian navy is blocked in the Adriatic Sea by the Otranto Strait; even if they can break out of the Adriatic Sea, they will come across the Mediterranean Sea next. Although the Mediterranean Sea is large, it is still a closed sea, and the strength of England and France in the Mediterranean Sea is still stronger than that of the Austro-Hungarian navy.

Of course, these geographical conditions also have advantages. The Austro-Hungarian navy cannot go out, and other national navies find it difficult to come in. Previously, the biggest threat to the Austro-Hungarian navy was the Italian kingdom navy, which had said goodbye to the Adriatic Sea altogether after losing Venice and the coast of the Pope Country and the Kingdom of Naples, so the biggest threat to the empire’s navy no longer exists.

So the Austro-Hungarian navy is not active or proactive strategically and is more inclined to defense and counterattack in ship design. Defeating the Italian navy under the command of excellent generals was a complete surprise, so the current strategic and tactical vision of the Austro-Hungarian navy’s senior management can be guaranteed.

If they come to demonstrate the development direction of the East African navy, it will be of great benefit to the East African kingdom. The scenarios faced by the East African navy are completely different from those of Austria-Hungary, although Ernst emphasizes building a defensive navy. East Africa faces the vast Indian Ocean directly to the east, so the East African navy should naturally be more proactive in strategy and tactics; waiting for the enemy at the doorstep is impossible.

Grand Duke Ferdinand: ”Alright! What you said makes sense. I was a bit anxious, after all, the current East African navy is indeed somewhat undisplayable. It seems that my perseverance is not enough.”

As the former Navy Commander of Austria, falling to the position of Navy Commander of East Africa, the gap is indeed too big. Most people might directly give up, but Grand Duke Ferdinand is different because the blow from Mexico was greater to him. Now, switching tracks and returning to the naval road actually makes Grand Duke Ferdinand somewhat eager, especially after East Africa proposed expanding the navy. Ferdinand is keen for the East African navy to directly surpass the former employer, at least in scale.

Ferdinand continued: ”In fact, for warship procurement, we don’t have to focus solely on Austria; other countries can also be considered. France and England are also good choices.”

Ernst: ”That’s what you’re saying, but I personally believe it’s better to have unified standards for the navy. After all, our navy and the Austrian navy are closely linked, which also facilitates logistical support and technical coordination.”

Despite saying this, Ernst’s continued support for the Austrian shipbuilding industry is not entirely from an economic perspective but more from military requirements and political considerations.

After all, just as the East African navy can make demands on Austria, it can likewise make demands on the shipyards of France and England. They can be fully commissioned to build ships to East African standards.

In this era, the most cost-effective ship dealers, especially for warships, are certainly British in the priority. There’s no question about the quality, and military products are not something that can be just addressed casually.

But speaking purely from an emotional standpoint, Ernst feels that if the British were to earn this money, it would be more painful than dying for him. Ernst is most active in anti-English, fooling Americans, and resisting Japanese efforts.

So when the economic crisis occurs, Ernst naturally hopes for Britain to suffer the greatest loss possible. If he were to send orders, wouldn’t that be aiding the enemy!

As for France, it is similar to Britain; the threats to East Africa are not small. Both are top players on the African continent and don’t naturally align with the East African kingdom.

Moreover, it’s not that our own resources are lacking; there’s no reason for foreign entities to earn the money. Our own resources refer to the entire German cultural circle.

Among them, Austria-Hungary is Ernst’s most trusted partner. The peculiarities of Austria-Hungary are strong yet not too strong, with its industry, economy, diplomacy, military, and other fields being top-tier globally, yet never able to exert full strength.

Speaking from a naval perspective, although the Austro-Hungarian navy is not given much attention, its strength cannot be underestimated, with two recent world-class naval battles showcasing excellent performance.

Although Austria’s shipbuilding industry has thrived, largely due to contributions from the Heixinggen consortium, even without their input, today’s Austrian shipbuilding industry is still world-class, surpassing Germany currently.

What’s lacking in the Austro-Hungarian navy is the cost of trial and error. To progress, the navy must pay the cost of trial and error. Like the well-funded British navy, even if it took a wrong turn, it could quickly turn back. The Austro-Hungarian navy couldn’t afford that.

Ernst is willing to share some of the trial and error costs with Austria-Hungary, as their strong shipbuilding industry equates to a strong East African shipbuilding industry. Among the four shipyards of the Heixinggen Ocean Trade Company, two are located within Austria-Hungary.

Moreover, cooperating with a country like Austria-Hungary allows Ernst to put a hundred hearts into two hundred stomachs. Not only is the relationship between the two families very close, even if Austria-Hungary wanted to interfere in East Africa’s development, they would be powerless.

Germany, on the other hand, is slightly less in this regard. Although both are Hohenzollern family, there is some conflict in national interests. It’s better when William I and Bismarck are in power, as they emphasize international cooperation.

Looking at pre-World War I Germany from the previous life, driven by national interest groups, it ultimately pursued colonizing Africa, eventually using force to break the world order under the pressure of England and France.

Now that East Africa occupies nearly a third of Africa, it’s truly worrisome that some individuals within Germany might harbor ill intentions toward East Africa, which is a threat on the level of national interest.

After all, German industry and commerce also need markets and raw material sources, which is something William I and Bismarck cannot suppress. To the left of Germany is France, to the right is Tsarist Russia, both of whom are not easy to provoke, leaving little maneuvering space. Austria-Hungary is much stronger in this regard, with the Balkans, this tempting piece of roasted meat, lying right next to it. Gaining the Balkans would make realizing a revival of the Eastern Roman Empire a highly likely outcome. Though this is also Tsarist Russia’s goal, both believe they have the better chance of victory.

Grand Duke Ferdinand: ”Since you think this way, I won’t say anything more. This will somewhat limit the choices for the East African navy, but we can still play the foreign card and have Austria-Hungarian enterprises give us more concessions.”

Ernst exclaimed: ”Indeed, Father-in-law, you’re the professional. I hadn’t considered this level previously.”

In an economic downturn, businesses worldwide are enduring hard times, with their pursuit of orders becoming increasingly fierce. If East Africa uses this as a bargaining chip, Austrian shipyards will certainly offer further discounts.

Originally, the money invested in the navy might just be enough in normal years, but with an economic crisis and leveraging opportunistic purchasing, the funds could become suddenly abundant.

Of course, during an economic crisis, great powers’ governments will surely not do nothing, often actively expanding military preparation, solving employment issues while being ready to transform the crisis into a war, like the American Civil War caused by the 1857 US economic crisis.

It seems one must remain vigilant about such changes, especially in not relaxing the construction of the army, although there doesn’t currently seem to be a need for major changes in the East African army, just optimizations of certain details on the current basis.