Chapter 348: Chapter 35, The Most Valuable and The Least Valuable
 

The Central American region, after three years of management, Governor Hummel had almost completely subdued the local power brokers.

Those willing to be incorporated naturally continued to hold high positions, while the stubborn resisters were harmoniously dealt with, an area where Austria had accumulated rich experience.

Take Nicaragua as an example, with a total population of over three hundred thousand, most of whom were Indians, white immigrants and mixed-race individuals only numbered a few tens of thousands. What could they use to confront Austria?

In all the countries of Central America, it was the same situation: the land wasn’t vast, and on top of that, the population was sparse. If there was any thought of turning to guerrilla warfare, it wouldn’t require Austria to step in, the local Indian tribes would have snuffed them out.

The Habsburg Family had once been their sovereign, and their ancestors had once pledged allegiance to Charles V. Arguably, there was a slender thread of legal continuity, and coupled with a strong fist that had already quelled those who resisted, the rest continued to support the rule of Emperor Franz.

As the interests of the ordinary people were not harmed, there naturally wasn’t any talk of hatred.

The main reason for the independence movements back then was because Spain had been crippled by the French, mine owners and capitalists did not want to pay taxes to Spain, and the bureaucrats wanted more power, so they went with the flow and declared independence.

Perhaps it’s not appropriate to use the term “they,” as how could a small country have so many capitalists and mine owners? In reality, it was just one or a few families that wanted independence, otherwise the Central American region would not have fragmented into so many countries.

None of this matters now, as with the influx of immigrants, even if there were those who were discontented, they couldn’t cause much trouble.

Inside the Central American governor’s mansion in San Jose, the immigration officer John-Radford reported, “Governor, Colombia has refused to let immigrants enter the Panama area, and they also demand that the immigrants be dispersed and not concentrated together.”

Undoubtedly, since Mexico paid its ‘intelligence tax’ to the United States, everyone had learned their lesson and become wary of foreign immigrants.

Colombia naturally lacked immigrants. Panama had not yet gained independence, and the current territory spanned over 1.2 million square kilometers, with just over two million people, of which the Panama area had about 100,000.

If immigration wasn’t restricted, who knew when the Republic of Colombia would change hands?

This was also the reason the countries of South America had not developed. Because the native population was so scant, they dared not recklessly accept large numbers of immigrants.

For example, the Republic of Colombia only needed four to five hundred thousand immigrants to become a German descendant country.

Under these circumstances, everyone, of course, became vigilant. Denying German descendant immigrants access to the Panama area was due to the fear that Austria would turn the region into a colony one day.

There was nothing to blame here, as Governor Hummel was indeed eyeing the Panama area; it would be unfair to deny others the right to resist, right?

The Panama area in Central America is the most suitable for digging a canal, an indispensable part of Austria’s strategy for the Americas, which must be kept firmly in hand.

Governor Hummel asked, “Didn’t the legislators we bribed help to speak up for us?”

In this era, corruption was a common feature of all countries, especially in emerging republics like Colombia, which were rife with both good and bad elements.

Immigration officer John-Radford explained, “Our public relations efforts are facing resistance from foreign powers, and preliminary assessments suggest that the British are behind it, and the French might be involved as well.

Several Pro-British faction legislators have publicly opposed us; they have put forward the Austrian threat theory, arguing that once we secure a foothold in Latin America, we will inevitably seek expansion, and Colombia will be the first to be impacted.”

Hummel had nothing more to say; he admitted he was interested in Colombia, even though there was no definite plan yet, but the voices calling for expansion into Colombia had already arisen.

There was no other reason but that Colombia was too weak. In this era of survival of the fittest, being the target of everyone’s hunting was not at all surprising.

Of course, it was impossible to directly attack the Republic of Colombia. The high cost of waging war in the South America region and such a campaign would be enough for the Vienna Government to be discouraged.

Austria was not Spain; if Franz were the King of Spain, then without question, he would have had to march back to South America.

During this era, the feudal cancer had not been entirely eradicated, and all the South American countries had forces loyal to the king. With these Royalist Party forces in place, as long as the military defeated the enemy, they could re-establish control.

Then, even if the cost of war was a bit higher, trading it for a larger development space would be worth it.

Let Austria forget about it. Spanish descendants and German descendants were completely different ethnicities, and to win their allegiance would require, as with the other Central American countries, an initial military defeat followed by enforced rule, and then organizing a large number of immigrants to dilute them into a minority before it could be resolved.

After a moment’s hesitation, Governor Hummel made a decision, “Bribe local officials in Panama to create an accomplished fact with the immigrants.

Fabricate immigrant identities; French, British, Spanish, Belgian, Dutch, etc.—all are possible. Send someone to handle things, we must make sure to settle these immigrants down.

If we can’t settle them in the Panama area, then have them placed inland in Colombia; the government will finance the purchase of land for them.

If anyone tries to mess with us, figure out a way to get rid of them. This is related to our future national policy and cannot be undermined by anyone.”

This was not Austria’s first batch of immigrants to Colombia. However, previously it had all been minor, sending about ten thousand people each year, and because of the American Civil War, it was regarded as normal immigration and did not attract the attention of the Colombian Government.

Over time, the number of immigrants surged, and this covert immigration activity was eventually exposed.

The number of German descendants had rapidly increased, accounting for one-fifth of the white population. Without restrictions, it would only be a matter of time before they comprised over half the population.

Oh, don’t be misled by the significant figure of one-fifth. In reality, it amounted to only a few tens of thousands. With a small population base, there was no way around it.

In the Panama area alone, there were now twenty-thousand German descendants, and the Colombian Government, having realized this, naturally sought to stop it.

Considering that the total population in the Panama area was only around one hundred-thousand, the German descendants were close to being one-fifth. This was one-fifth of the total regional population, not just one-fifth of the white immigrants, and they had already surpassed the total of the other white immigrants.

Theoretically, within a decade, the local ruling power would fall into the hands of German descendants. This is a characteristic of democratic electoral nations, where the ethnicity with the majority of votes naturally gains the upper hand.

John-Radford replied, “Certainly, Governor, our immigration bureau will do its utmost to complete the task.”

Governor Hummel nodded, then sighed deeply. He wouldn’t have wanted to make such a major move if the American Civil War wasn’t about to conclude.

Immigration is easy, but settlement is hard. The land in America is cheap, but it’s not just about dividing a parcel of land, it also requires ensuring the immigrants’ normal livelihood.

In less than four years, 380,000 immigrants were settled in the Central American region and over 60,000 were sent to Colombia, an incredible achievement.

This is now the final wave of immigrants. Once the civil war is over, all walks of life in the United States will be looking to rebuild, and the number of those wanting to leave will certainly reduce drastically.

Having no alternative, Hummel had to make a big move. And not long after it began, the Colombian Government detected it.

No matter how you look at it, the immigration strategy was successful. Austria established its rule in the Central American region, and the populace who obtained land became the foundation of this rule.

Once the final wave of immigration ends, the number of German descendants locally will exceed 500,000. This number already surpasses 20 percent of the total population and is 1.5 times the number of other white immigrants.

If the Vienna Government wishes, it could immediately stir up a Central American kingdom.

Of course, Franz would definitely not do that, even if he were to support a kingdom, that would be a matter for the future.

Having just experienced a civil war, it would cause the American people to reflect for twenty years, during which time they should be fairly well behaved.

…

Governor Hummel asked, “Mr. Klaus, how much is our financial revenue this year, and how much will the budget deficit increase by?”

While strategically successful, the economic reality was a serious loss. Even though the colonial government worked very hard and the Central American region was quite prosperous, with the immigration black hole, the government’s financial revenue was truly insufficient to fill it.

Finance Director Klaus calculated and said, “This year’s financial revenue is about 7 million Divine Shield, an increase of 21 percent from last year, mainly from mining and tariffs, and the transaction tax has also grown rapidly.

This year’s budget deficit will depend on the number of immigrants later. Virtually all the immigrants have applied for interest-free loans, and even though they will repay the money, we must bear the interest.

Preliminary estimates indicate that this year’s budget deficit will be between 6 and 7 million Divine Shield. If we were to launch an attack on the Native Tribes, an additional 700,000 Divine Shield in military expenses would be added.”

A budget deficit of 100 percent, such a colony, I estimate few countries would dare to take on. Unfortunately, that’s the cost of large-scale immigration.

With an interest-free loan of 200 Divine Shield per person, for a hundred thousand immigrants, that’s 20 million Divine Shield. Even if the banks charge the government a modest 3% annual interest, that’s still 600,000 Divine Shield in interest every year.

Not counting other expenses, just the interest costs alone are astronomical. Luckily, this will only last for two years, as the colonial government definitely couldn’t bear it if it were to be any longer.

Hummel considered and said, “This will be the last year of large-scale immigration, and we’ll only have to deal with the cost of loan interest for a maximum of another two years.

Starting next year, there will be no further costs for immigration and settlement. Mr. Klaus, calculate for us when we can achieve a balanced budget, and how long it will take to recover the investment.”

Hummel could not help but be concerned. For the Central American Colony, the Vienna Government had invested tens of millions of Divine Shield, and they were still in the stage of continuing investment.

Considered Austria’s most expensive colony to establish, the returns, however, were not as optimistic.

Apart from being able to mine a few tons of gold, along with a hundred and eighty tons of silver annually, they could only sell timber and export some agricultural products.

As for resources like copper, iron, lead, zinc, and aluminum, their current extraction value is not high, and raw ores have a hard time fetching good prices on the international market.

To refine industrial products, let’s just forget it. It would require substantial capital investment, something the colonial government is not willing to lavish.

Planting cash crops, mining precious metals, and selling industrial raw materials is the correct path for a colonial economy.

After considering, Klaus said, “After the immigration work ends, it will take another five years to initially balance the budget.

To recover the invested capital costs, the time frame is a bit longer, possibly needing twenty years, or even longer.”

This is the big challenge facing the colonial government. The high investments made in the Central American Colony have already provoked a lot of opposition at home.

Unlike the development of African Colonies where there are many beneficiaries at home, and the losses are not so severe.

Immigrants coming from the motherland to the Central American Colony are the minority, with the majority absorbed from the United States, this part of the population are the true beneficiaries.

Many within the government criticize the Central American strategy and demand that the efforts invested into the Central American region be withdrawn and invested into the African Continent.

However, under the strong insistence of Franz, these criticisms were repressed. Nevertheless, the voices attacking the Central American colonial government have never stopped. Hummel was in urgent need of presenting results to prove the correctness of opening up the Central American Colony.

Accomplishing this was incredibly difficult, firstly the strategic value couldn’t be realized in the short term, otherwise, there wouldn’t be so many objections.

As for economic value, it’s a pity but it is currently a net loss. Even calculating the invisible profits, the colonial government still operates at a deficit.

They can’t even provide industrial raw materials for the domestic market, as Austria does not lack the industrial raw materials produced in these regions.