African Entrepreneurship Record

Chapter 1269: Chapter 278: Shifting the Focus of Trade Southward

Subsequently, the discussions on the active development plan of the Kra Isthmus by the East African Government came to a halt, mainly because aside from its strategic value, there is not much to discuss economically.

And the main focus is still on the population aspect; resolving the population issue in the Kra Strait Territory ensures that in the future, neither Siam nor any other country can reclaim the Kra Strait Territory.

Ernst stated: ”The population policy of the Kra Strait Territory involves two aspects: one is the immigration policy led by us, and the other is the policy of assimilation and integration.”

”The future immigrant population in the Kra Strait must not be less than two hundred thousand, thereby changing the local population structure. For citizens willing to live and work in the Kra Strait Territory, support and preferential policies must be given.”

”Siamese locals who are willing to accept East African governance and become Germanized can undergo screening.”

The East African Government is ultimately not a complete butcher; citizens willing to integrate into the Rhine people are actually acceptable, after all, East Kalimantan has been home to tens of thousands of indigenous people taken in by East Africa.

Of course, there is a limiting condition: populations such as those of Hinduism and the Arabian Sect are certainly not considered by the East African Government.

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In late 1916, the East African Government once again dispatched envoys to The Hague in the Netherlands.

Frier stood at the bow of the ship and sighed: ”This return visit can be said to be somewhat dangerous, as the naval engagements between England and Germany in the North Sea might spread to coastal areas, not far from our destination.”

From the outbreak of war to now, three years have passed; the German Navy and the Royal Navy have constantly probed each other, leading to frequent small-scale skirmishes in the North Sea.

However, this also resulted in the infamous Battle of Jutland not breaking out; the German Navy’s commander is very aware of the gap between the two sides. Moreover, the blockade Germany suffers, due to the existence of East Africa, has not yet reached a point where Germany’s economy cannot be sustained, so most of Germany’s High Seas Fleet is temporarily shrinking into the Baltic Sea or near the Atlantic Ocean, maneuvering with the Royal Navy.

Of course, another important factor is that currently Germany is focused on the eastern front, with the primary goal of defeating Russia, hence remaining defensively on the western front.

This means the High Seas Fleet does not need to risk a decisive battle with the Royal Navy; however, in this stalemate situation, the most unlucky are Denmark and possibly the affected Netherlands, as the sea territories of both countries are on the front line of Anglo-German naval confrontations.

This is also why Frier is somewhat nervous; this time Frier’s destination is The Hague, the political center of the Netherlands, not close to the combat area.

But no one knows if England and Germany might cause collateral damage, after all, there are only two routes for the High Seas Fleet to break out, the most important being the English Channel.

Frier’s deputy, Rogers, said: ”Sir Frier, you don’t need to worry about this; at the beginning of this year, Germany launched a submarine tactic but was halted by William II. Unless Germany restarts this indiscriminate tactic, based on previous experience, the German Navy will certainly inform the Empire before using submarine tactics. Our safety will not be threatened, so on this trip to the Netherlands, you can set your mind at ease.”

Frier said with some helplessness: ”I’m worried about Germany? Wrong, it’s England, because England is currently in a high state of alert regarding the North Atlantic sea areas. Who knows if they might secretly pull some tricks.”

Frier says this because currently, Germany is the least likely country in the world to offend East Africa; ever since its trade with the United States was cut by England, East Africa has become its largest trading partner.

Though East Africa now cannot travel through the Atlantic Ocean, it can still transport goods to Germany through land channels like the Baghdad Railroad.

The Baghdad Railroad can be considered Germany’s lifeline; if this channel is cut off, Germany would spare no expense to attack England and France.

In fact, currently, Germany’s logistics situation is not as dire as imagined; after all, Germany can basically self-supply essentials such as food and steel, with significant gaps only in strategic materials like rubber, copper, cotton, sugar, and tobacco.

The alleviation of Germany’s food issue is understandable, as Germany’s great advantage on the eastern front has allowed it to gain a lot of Russia’s former grain-producing areas.

However, these lands cannot produce tropical crops like cotton, tobacco, or rubber, but this has reduced the transportation pressure on the Baghdad Railroad, allowing the Allies more railway capacity to import scarce resources from East Africa.

The British, although keen to block the Baghdad Railroad, are powerless; the Baghdad Railroad is completely controlled by the Allies, and on maritime aspects, the Indian Ocean is East Africa’s home turf.

In the North Atlantic, the British might make East African merchant ships ”make a wide detour,” but they cannot do so in the Indian Ocean.

The East African Indian Ocean Fleet organized numerous warships to maintain the open Persian Gulf route, escorting East African merchant ships.

And the British cannot fully digest East Africa’s industrial capacity like placating the Americans, so East Africa cannot make concessions in the Indian Ocean area for a British victory.

In fact, Britain has already cut off trade channels between the Suez Canal and the North Atlantic for East African merchant ships and the Allies.

This led to a sharp reduction in trade volume between East Africa and the Allies after 1916; however, fortunately, East African trade has now shifted towards southern countries, namely South America, the Far East, the South Sea Region, the Middle East, and West Africa, leading to a clear southern shift in East African trade patterns after 1916.

Of course, Europe and North America still occupy an important position in East African foreign trade, as the consumption capacity of other regions is ultimately limited.

But East Africa is in a surplus in trade with southern countries, with very lucrative profits, and trade with North America is more about mutual supply, with no absolute winner.

And because Europe is currently at war, East Africa holds an advantage in European trade, even if export volumes have declined, but still not comparable to other regions.

However, the notable trade advantage with Europe is clearly just short-term benefit; long-term benefit would be if stable trade with southern countries could be maintained.

This is why East Africa has expanded aggressively in the South Sea Region, West Africa, and other areas in recent years, building overseas bases.

Frier’s return to the Netherlands this time is to further expand East Africa’s advantage in the South Sea Region, supplementing the Kra Strait Territory as a colony first.

East Africa’s next focus is on the Netherlands, the ”big stronghold” of the South Sea region, because, looking across the entire South Sea Region, only the Netherlands’ colonies can be compared with England, France, and East Africa.

Even the United States’ colonial holdings in the South Sea Region cannot compare to these four nations, because the United States only has half of the Philippines, appearing somewhat isolated.

The Dutch East Indies, whether in terms of area, scale, or strategic points controlled, are clearly at the forefront among South Sea countries.

But the national power of the Netherlands is clearly not at the same level as England, France, and East Africa, and naturally, the Netherlands will be targeted by East Africa again, as East Africa excels at picking the soft targets.

”How much longer until we reach The Hague?” Frier asked.

”About three to four hours,” Rogers replied.

The city of The Hague should really be considered the actual capital of the Netherlands, though Rotterdam or Amsterdam is the economically most developed region of the Netherlands and is recognized as its capital.

Yet, the administrative center of the Netherlands is The Hague because the Dutch Central Government, Parliament, Supreme Court, and other institutions are all established in The Hague.

Frier grasped the railing, gazing at the sea, saying: ”I wonder if our arrival this time will make the Dutch happy, given we just took their East Kalimantan, and now covet other parts of the East Indies.”

Rogers, with some schadenfreude, said: ”This is not up to the Dutch but depends on the Empire’s development strategy, and the Dutch do not have the confidence to refuse us.”