African Entrepreneurship Record

Ernst naturally couldn’t tell his subordinates, ”I am a time traveler, openly stating that the United States will clash with Spain...” such foolish words.

Ernst said, ”Of course, we don’t intend to offend Spain, after all, my relationship with the Spanish royal family is quite good.”

The Heixinggen Royal Family had previously contributed greatly before Alfonso XII ascended the throne, so the relations between the two countries have always been very friendly. Of course, now that Alfonso XII has passed in November 1895, the King of Spain is his son, Alfonso XIII. The relationship between the two countries has not changed due to the change of kings, not to mention the connections between the two; the power of East Africa also warrants Spain’s attention.

After the South African War, the relationship between East Africa and Spain became even closer. After all, Spain doesn’t get along well with neighboring Portugal, and Alfonso XII even wrote a letter to congratulate Constantine at the time.

”Therefore, how we acquire Mindanao Island requires your Ministry of Foreign Affairs to play a role,” Ernst continued.

”Your Highness means?” Herman asked a bit puzzled.

”The Ministry of Foreign Affairs will negotiate with Spain to purchase the ownership of Mindanao Island,” Ernst explained.

Indeed, this is a potential solution, but Herman was not optimistic. Although there is a precedent for selling national territory, the most classic being the royal family’s purchase of the Alaska colony, is Spain the same as Tsarist Russia back then? Herman naturally did not believe Spain would consider selling its colony, as when Tsarist Russia sold Alaska, certain messages had already surfaced.

However, trying wouldn’t hurt; it’s more reliable than the National Defense Security Bureau staging a coup on the island.

Herman then asked, ”Your Highness, how much should we spend to purchase Mindanao Island?”

In Herman’s view, whether they can acquire Mindanao Island depends on how much is spent. If the price is right, not just Mindanao Island, but even India would be for sale; it’s just that no one can afford it.

To Herman’s question, Ernst didn’t state directly but extended two fingers.

”Twenty million? In pounds or dollars? Isn’t it too high, given that such a vast land like Alaska was bought for only a few million dollars back in the day? Even if there’s some currency depreciation, it still seems unreasonable.”

Ernst said, ”It’s Rhine Shields, not pounds or dollars, and it’s the maximum price; anything beyond that is impossible.”

Twenty million Rhine Shields is approximately three million US dollars. If we compare it to the twenty million USD the United States paid Spain in the past, this price for purchasing Mindanao Island is indeed quite sincere, since East Africa is not buying Luzon Island.

Of course, the calculation can’t just stop there; after the Spanish-American War, the United States gained not only the Philippines but also Cuba, Guam, Puerto Rico, and other colonies.

As for twenty million, which seems substantial, it’s actually far less than just Cuba’s value. It’s more of a little ”consolation” from the United States to Spain, considering Spain is a major power, and even though it lost to the up-and-coming United States, the United States, being sensible, didn’t want to completely offend Spain.

And using three million USD to acquire Mindanao Island seems insincere, given that Mindanao Island constitutes nearly one-third of the Philippines’ area. If East Africa offers this price, why should Spain accept? Spain hasn’t been defeated by East Africa, forced to cede territory.

At this time, Herman’s thoughts were that even if Mindanao Island had little value, Spain would be unlikely to sell its colony. However, Herman didn’t say much, for a twenty million Rhine Shield offer from East Africa seemed sincere enough to him, even if not used for purchasing territory, it could accomplish a great deal.

Ernst actually believed Spain wouldn’t accept East Africa’s conditions either, as the Philippine colonies were important to Spain mainly due to their location, with the Far East Empire’s huge market to the north. After centuries of development by Spain, the Philippines itself was relatively developed.

”Alright, your Ministry of Foreign Affairs shall first make contact with the Spanish government. If it works out, great; if not, we’ll have to consider other methods. Of course, twenty million Rhine Shields is our bottom line, don’t offer it immediately. Start negotiating at a lower price with Spain, provided they’re willing to sell Mindanao Island,” Ernst concluded decisively.

According to Ernst’s thinking, even if Spain won’t sell now, once Spain and the United States start fighting next year, East Africa can make another offer. By then, the Spaniards won’t have much choice, and as for offending the United States by trading during wartime, so what!

In fact, historically, Germany was another beneficiary in the Spanish-American War. Germany opportunistically purchased Palau Islands and Mariana Islands excluding Guam from Spain after the war.

Before the Spanish-American War, Germany had already considered purchasing the Philippines and surrounding islands from Spain, but Spain did not agree.

Thus, Ernst presumed Spain wouldn’t agree to East Africa’s terms either. Even if East Africa made an offer, it wouldn’t surpass the wealthy Germany.

...

However, the actual situation is always unexpected; what Ernst and the East African Government thought impossible happened.

”What? Spain agreed to our terms?” Ernst asked Herman, somewhat disbelievingly.

Herman was also very excited but managed to stabilize his emotions to explain to Ernst: ”First, we expressed to the Spanish government our intention to purchase Mindanao Island. This matter caught the attention of Alfonso XIII, and they actually agreed. However, we had some disputes over the price with the Spanish government. As you instructed, we initially quoted ten million Rhine Shields. Spain thought this price was too low, and after some bargaining, both sides eventually settled on a final price of seventeen million Rhine Shields.”

Ten million Rhine Shields is equivalent to a price of over two hundred sixty thousand US dollars, nearly forty thousand US dollars lower than Ernst’s expectation.

”It shouldn’t be!” Ernst couldn’t believe, ”Why would the Spaniards agree!”

Herman thought the same: ”Our Ministry of Foreign Affairs was also surprised, but later got an answer from Count Rols in Spain.”

”What did he say?” Ernst asked curiously.

Herman: ”It was still about the barren state of Mindanao Island. If we were like Germany asking to buy Luzon Island and other islands, Spain certainly would not agree, since Luzon Island is the essence of the Philippines.”

”Of course, there’s another important reason. In Spain’s view, Mindanao Island is a hot potato. They haven’t established effective control there. The local Moros are followers of the Green Sect and have been fiercely resisting Spain. So, the Spanish government only had a few fixed strongholds on Mindanao Island without any real governance over the place.”

Indeed, there’s no such thing as a free lunch; Spain wouldn’t willingly sell Mindanao Island unless they didn’t see its prospects as favorable.

Of course, there could also be other factors at play, like Alfonso XIII’s attitude and East Africa’s offer.

East Africa’s offer was indeed low, but Spain had its calculations: firstly, East Africa was only purchasing Mindanao Island, which didn’t involve Luzon Island, the core of the Philippines; otherwise, Germany’s past experience would serve as a lesson.

Secondly, the Spanish government thought that if they didn’t sell Mindanao Island to East Africa, would East Africa not have other means? East Africa had made some achievements in the Pacific Region over the years, such as the Lan Fang Overseas Province, Northern Ryukyu Islands, North Hawaiian Kingdom, and Balabac Island, becoming a new player in the Pacific Region.

So, the Spanish government thought selling Mindanao Island, a place they couldn’t control effectively, which couldn’t generate economic value and faced fierce resistance, to East Africa would do no harm.

Of course, this also means the problems Spain encountered with Mindanao Island would transfer to East Africa as it becomes an East African colony.