African Entrepreneurship Record

Chapter 1358: Chapter 359: Magellan Strait (Part 3)

”We hope that the future Magellan Strait route, like the current Cape of Good Hope, although its status declined due to the emergence of the Suez Canal, can be revived because of your country’s rise.”

Cape of Good Hope once fell sharply in status due to the opening of the Suez Canal, while at that time, East Africa was beginning to make a mark on the African Continent, but the economic level was not high.

However, the turning point appeared in the 1990s, as East Africa seized a large amount of West Coast territory from Portugal, and to develop the west, the Cape of Good Hope became the main passage for ships between the two sides of East Africa, which once again promoted the revival of Cape of Good Hope shipping.

Entering the twentieth century, the trade demand between the two sides of East Africa further increased, and the cost advantages of shipping made East African ships traverse the Cape of Good Hope more frequently. Today, the Cape of Good Hope route has become more prosperous, even regaining some of its former glory.

Minister Reini said, ”Naturally, the Empire values trade with countries in America, and Chile is an important country on the Pacific coast of America. In recent years, we have imported a large amount of minerals and agricultural products from your country, so restarting the Magellan Strait route has become an urgent task to meet the trade demands of our two countries.”

”Moreover, if possible, we hope your country can provide us a base in the Magellan Strait, to serve as a haven and maintenance base for our ships.”

Regarding Reini’s proposal, Rigaldo delayed, saying, ”As for this matter, since it involves territorial issues, our government needs to study it further. It is not something that a small figure like me can decide.”

To Rigaldo, Reini’s request is like Zhang Liang dancing the sword to get attention, aiming at Pei Gong, not an economic collaboration, but a preparatory act for the East African Navy.

The economic value of Magellan Strait is just so-so, but its strategic value is quite high. If the East African Government and Chile reach an agreement, then in the future, the East African Navy might be able to use the Magellan Strait to move directly from the Atlantic Ocean into the Pacific Ocean.

Besides the Magellan Strait, the East African Navy wants to achieve this with only two other options: one is through the Panama Canal controlled by the United States, and the other is taking a risk through the Drake Passage.

The former is almost impossible to achieve. After all, the only country that can threaten East Africa’s interests in the Pacific is the United States, so how could the Americans let East Africa pass?

As for the latter, although the Drake Passage is international waters, its environment is even harsher than the Magellan Strait, and ships trying to cross face almost certain death. Even the namesake of Drake Passage, Drake himself, never crossed it. If the East African Navy dared to take the risk across Drake Passage, it might reenact the tragic scene of the Yuan Dynasty navy’s assault on Japan, swallowed by stormy waves.

Of course, the East African Government’s intention to use Drake Passage for military purposes is not without negotiation space, which is also the reason Rigaldo said the Chilean government is researching it.

It is known that the whole length of the Magellan Strait extends over five hundred kilometers, and if East Africa were to only establish one or two military bases, it would actually be insignificant, unless East Africa, like Chile, controls the entire land on both sides of the Magellan Strait.

Facing Rigaldo’s gentle refusal, Reini showed no sign of disappointment, as he was merely bringing it up.

Reini said, ”If your country makes a decision, you can contact us, and we can provide rent according to normal standards.”

”However, if your country doesn’t have any plans for now, let’s talk about the economic development of the Magellan Strait. At present, the Empire has already become Chile’s second-largest trading nation, and we hope to further expand the scale of trade with your country.”

”Especially in establishing a stable transportation channel for copper ore and nitrate, which is beneficial to both countries.”

As early as 1908, Chile had already become East Africa’s largest copper ore import country. Although East Africa itself is the largest copper-producing country, the development of industries such as East African electricity still leaves East Africa’s demand for copper unmet.

Nitrate, even less needs to be said, as during this period of World War I, the global demand for nitrate is enormous. After importing nitrate from Chile, East Africa can process it into explosives and other industrial products, and export them to Europe, earning considerable profits.