While the British government was busy with internal reforms and the Austrian government was focused on domestic development, international conflicts showed no sign of stopping. Following the principle that preventing the enemy from achieving their goals is itself a victory, the two great powers once again began trying to undermine each other. But digging traps wasn’t easy. In the art of scheming, both Britain and Austria were masters, and ordinary tricks couldn’t hurt either side. Because of the ongoing reforms, the British government was now mired in fierce internal strife. Yet that didn’t mean the Austrian government could take advantage of the situation. After years of confrontation, both Britain and the Holy Roman Empire had long since united in their perception of each other as the enemy. By now, there were no pro-British factions left within Austria, nor any pro-Austrian ones in the British government. Traditional friendship had long been exhausted by repeated clashes of interest. If the Austrian government rashly tried to interfere, it might even backfire, since faced with an external threat, the British government could end up reconciling its internal divisions early. Still, doing nothing and letting such a rare opportunity slip away was something Frederick could not accept. After all, while the Austrian government hadn’t taken any hostile action against the British, the British government had never stopped making small moves against the Holy Roman Empire. The so-called “Holy Roman threat,” “anti-dumping rhetoric,” and “freedom and security doctrine,” all of these international talking points were manufactured by the British. Rumors, once repeated often enough, take on the illusion of truth. Once the crowd starts believing, there’s no easy way to clear one’s name. To be fair, Frederick wasn’t overly concerned about gossip. For great powers, international opinion only mattered so much. The real issue was that the British weren’t merely spreading baseless lies, since there was a grain of truth in what they said, only heavily exaggerated. Take the so-called “dumping problem,” for example. It did exist. Under the free trade system, the industrially advanced Holy Roman Empire indeed had the advantage and had engaged in dumping in certain sectors. Ironically, the first country to carry out large-scale dumping was none other than Britain itself, and its behavior had once been far more excessive than anything the Holy Roman Empire had done. Back then, the British used cotton cloth as a weapon to flood markets around the world, destroying the textile industries of many nations. They made enormous profits, yet that still was not enough, and soon after they turned to the opium trade. In a sense, Britain’s former glory was built on three pillars: colonization, dumping, and drugs. Now that this truth was being exposed, it was not because the British had suddenly grown a conscience. It was simply that, under the harsh reality of market competition, they had gone from being the ones doing the dumping to being the ones dumped on. You reap what you sow. Having fallen behind in the Second Industrial Revolution, Britain was thoroughly outmatched by the Holy Roman Empire in emerging industries, with entire sectors where it had been left far behind. Even its once-dominant cotton textile industry had come under heavy pressure from rising national industries across the world, and its development in recent years had been anything but smooth. It could not be helped, since the first step in industrialization for every country was the textile industry. Rather than saying the Holy Roman Empire was competing with Britain, it would be more accurate to say that every newly industrialized nation was competing with Britain. In contrast, the situation of the Holy Roman Empire was much stronger. Whether in electricity, internal combustion engine vehicles, petrochemicals, pharmaceuticals, or machinery manufacturing, its industries all required strong technological foundations, natural barriers that made entry far harder than in textiles. For countries just beginning to industrialize, developing deeply in these high-tech sectors was impossible, so they posed no real competition. Since Britain could no longer earn its living in those traditional industries, it began acting like a spoiler, determined to overturn the table. On the surface, Britain appeared to be opposing product dumping, but in reality, it was laying the groundwork for dismantling the free trade system. Destroying the system, even at one’s own expense, was not something only Britain had done. The Austrian government had done it too. After all, Franz had been the first emperor to publicly call for an opium ban, leading a global movement against the drug trade. That single move caused Britain’s drug-based empire to collapse ahead of its time. Otherwise, its foreign trade deficit would never have become as severe as it was now. According to the original historical timeline, Britain’s drug empire only began to collapse after other nations developed their own opium cultivation industries, using poison to fight poison and driving down profits. Now the tables had turned, and it was the Austrian government’s turn to face headaches. As the world’s leading industrial nation, its need for export markets was self-evident. Once the free trade system collapsed and an era of trade barriers arrived, import and export trade would inevitably suffer, dealing a major blow to the Holy Roman Empire’s economy. By comparison, other rumors hardly mattered. In this era of the strong preying on the weak, the so-called “Holy Roman threat” not only stirred suspicion among nations but also inspired genuine fear. If others would not submit, making them fear you was just as effective. In a sense, this shameless attitude was something the Empire had learned from the British. Times change people, and they also change nations. Every great power in its age has aspects worth studying. No matter how deep the conflict between the Holy Roman Empire and Britain ran, it did not stop the Austrian government from learning from the British how to act as a true hegemon. More precisely, it was Crown Prince Frederick who needed to learn from them. Emperor Franz, now semi-retired, was past the age of lessons. Once the Holy Roman Empire fully secured its dominance, Franz would formally retire. The question of how to rule as a global hegemon was one that Frederick would have to answer. “When you don’t know where to start, just wait.” This was a lesson Frederick had been taught since childhood, so patience was never something he lacked. In fact, anyone who had served as crown prince for over forty years would have an abundance of it. A glance through history shows that impatient heirs rarely lived long. Compared to many others in similar positions, Frederick was already fortunate, at least he had begun to exercise power early. Consider Edward VII, who was not allowed to take part in politics until after the age of fifty. As for the later Charles, famous for his seemingly endless wait, no one knew whether he would outlast his long-reigning mother. Worse still, that unfortunate prince would never truly rule, all he could look forward to was a ceremonial crown. … Palace of Vienna Foreign Minister Frankl reported, “Your Highness, the United States has sent a diplomatic note, requesting the right to construct the Panama Canal.” The “Panama Canal” project had actually been started decades earlier by the French. Unfortunately, when Napoleon III became preoccupied with expanding into the Italian region, Panama fell under Austrian control. With an uncooperative colonial government, progress on the canal was anything but smooth. After years of intermittent effort, the project ended in the bankruptcy of the canal company. But the departure of the French did not mean the end of the Panama Canal. In fact, many within the Holy Roman Empire were eager to see this golden waterway completed. However, no matter what kind of proposal was presented, once it reached the Austrian government, it was always rejected. Anyone with sense could tell this was a political matter. The Holy Roman Empire’s capitalists had learned their lessons from harsh experience and no longer had the courage to challenge the government. For years afterward, the Panama Canal was all but forgotten, as if erased from memory. That was until recent years, when the booming capitalist economy made transportation a critical issue for the development of America’s western states. Rail transport could no longer meet demand, and sea routes required ships to sail halfway around the globe. The United States urgently needed a canal that could shorten the distance between its east and west coasts. Hearing the unsurprising news, Frederick smiled and said, “What terms did the Americans offer? Surely they don’t think they can just walk in and get something for nothing.” Negotiations were inevitable. Keeping the Panama Canal undeveloped had always been a way for the Holy Roman Empire to restrain American growth. Now that the Union government had made its approach, even if it was only a test of the waters, there was no way they would make no offer at all. Trying to get something for nothing might work on a small country, but doing that to a great power was asking for trouble. It would not only fail but would also harm diplomatic relations between the two nations. Foreign Minister Frankl smiled slightly and said, “The Americans have not offered explicit terms, but during our discussions, their Secretary of State made a suggestion. If we are willing to hand over the Panama Canal Zone, they will support us in the coming struggle for global dominance. Of course, that’s likely only part of the deal so they probably want more. After all, great power rivalries are rare opportunities. The Americans likely see themselves as important players and want to seize the chance to carve off a piece for themselves.” The United States was not making such a proposal without purpose. Judging purely by economic output, the United States was already the world’s fourth-largest power, behind only the Holy Roman Empire, Britain, and the Russian Empire. Its total industrial output even surpassed that of Russia, ranking just below the Holy Roman Empire and Britain. Because it still had to counter the Confederate States of America, the United States of America also maintained a continental army. According to the generally accepted view of the time, the United States was the world’s fifth strongest nation, just after Spain, though many believed it was already stronger than Spain. With such a solid foundation, the United States naturally had the confidence to choose sides in the coming struggle between the Holy Roman Empire and Britain for global dominance. At least in the Americas, whichever side the U.S. supported would gain an advantage in regional competition. In recent years, the British government’s persistent efforts to court Washington had further made the Americans aware of their growing importance, and they were eager to profit from it. There was no doubt that for the seller, the more bidders the better. If only Britain made an offer, the price would be lower than if both the Holy Roman Empire and Britain were bidding against each other. Frederick nodded and said, “The Americans’ appetite isn’t too large. They didn’t demand that we support them in annexing the Confederate States, which shows some restraint. Unfortunately, we have no need for them at the moment, nor any interest in carrying them on our shoulders to bargain for benefits from their British masters.” It was clear that Frederick had no fondness for such opportunists. The closer he came to global supremacy, the more deeply he studied the art of power. When it came to choosing allies, Frederick preferred partners capable of long-term cooperation rather than those destined to betray their side. The Austrian government had never sought to win over the United States, not because it lacked strength, but because their interests fundamentally conflicted. The reason was simple. Once the Holy Roman Empire became the world’s leading power, its global influence would far surpass that of Britain. After all, Britain was merely a maritime power, while the Holy Roman Empire wielded both land and sea power. Its military might was stronger, and its overall national strength even greater. For small or weak nations, this was not necessarily a bad thing. At least the Austrian government was far more decent than the British government and did not enjoy stirring up trouble, so ordinary people could live better lives. For regional powers like the United States, however, the situation was far less pleasant. “America for the Americans,” better to go back to sleep, because in dreams everything was possible. In reality, unification was hopeless. When Britain wanted to prevent the United States from reuniting, it could only impose economic sanctions or supply weapons to the South. But if it were the Holy Roman Empire in charge, it would send troops itself. Against a limited-power rival like Britain, America could still rely on steady development to catch up. But if it had to face a giant like the Holy Roman Empire, it would be permanently suppressed. The facts were clear, which was why the Austrian government took such a relaxed approach to courting foreign allies. In general, they simply waited for the British government to recruit its supporters, then welcomed Britain’s enemies directly. For instance, when the United States was drawn in by Britain, the Confederation naturally turned to the Holy Roman Empire, saving Austria the trouble and cost of building alliances. Although the Confederation was somewhat weaker, the Austrian government had never intended to rely on allies for the coming struggle for supremacy. As long as there were nations willing to wave their flags and cheer, that was enough. Prime Minister Chandler reminded him, “Your Highness, we should still reach out to the United States, at least show some sincerity so the Confederation feels pressure. From what I’ve heard, the Confederation hasn’t been very restrained lately. They’ve already extended their influence into northern Mexico. If we don’t warn them, they might invade again one of these days.” Ambition was something every nation had, it was only a matter of degree. The United States wanted reunification, and the Confederation wanted to grow stronger. In recent years, their domestic lands had been nearly exhausted, and the plantation owners had begun setting their sights overseas. A glance at the map showed that the Confederation didn’t have many neighbors, they simply had no other options. Frankly, farmers’ appetite for land is far stronger than that of capitalists. For a farmer, land itself is wealth. By contrast, capitalists care less about land and focus more on economic returns. Of course, this also relates directly to willingness to use force. Generally speaking, capitalists are more afraid of dying. Asking them to take up arms and go to war is asking too much. After a moment of thought, Frederick said slowly, “If that is the case, then we might as well grant the United States the right to dig the Panama Canal. The canal will not be completed in a day, so we can attach restrictive conditions to delay the project. By the time the canal is navigable, the contest between us and the British will likely be over. If the United States truly sides with us, fine. If they flirt with the British instead, then it will be only natural to take the Panama Canal back as punishment for choosing the wrong side.” All of this depends on the Holy Roman Empire winning this struggle for hegemony. Only the victor has the authority to make such decisions. If they lose the game, the Panama region will be lost as well. This is not the first time the Austrian government has taken control of a canal. The Suez Canal used to be jointly held by France and Austria, but after a continental war, the canal ceased to have anything to do with the French. In the long run, the Panama Canal will be opened sooner or later. Once the Holy Roman Empire’s hegemony is secure, the Austrian government will also build the canal. This is a matter of interest. The golden waterway carries not only wealth but also the economic lifeline of the Americas. Holding that lifeline, together with the Empire’s strength, will leave the Americans little choice but to obey.
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