章 226: Chapter 304 The Cost
After brief pleasantries, Eden got straight to the point. "Comrade Stalin, with your wisdom, you must have sensed the threat posed by Germany. If Germany unifies the entire Europe, its next target will likely be the Soviet Union."
Stalin listened impassively to Eden's lengthy discourse on the German threat. Even Eden himself felt a bit awkward monologuing and paused to take a sip of tea before asking in a subdued tone, "So, what price is your country willing to pay to have us join the war?" The implication was clear – Britain was inviting the Soviet Union to enter the conflict, and it would need to offer substantial concessions for the Soviets to consider.
Setting down his teacup, Eden spoke with gravity, "Comrade Stalin, our two nations are built on mutual assistance and mutual benefit..."
Before he could finish, Stalin coldly chuckled, stood up, and said, "Mr. Ambassador, you must be weary from your journey. Rest well today." With these words, he left the drawing-room without waiting for Eden's reaction.
Eden couldn't help but wryly smile. It seemed that bringing the Soviet Union into the conflict wouldn't be possible without paying a certain price.
If it were the pre-World War I Britain, perhaps they could have lavishly spent money, literally throwing it at the Soviet Union until they begged for mercy. However, the post-World War I Britain was in a state of decline, facing an overall downward trajectory.
Before World War I, Britain's military expenditure generally hovered around £200 million. However, the world hadn't fully entered industrialization at that time, and lower military spending was quite normal. During World War I, major powers engaged in modern warfare with various new weapons, all of which required substantial funds. Naturally, military expenditures surged during wartime. From March 1915 to March 1916, in a single fiscal year, Britain spent £1.56 billion. This amount was already the lowest spending during a fiscal year in Britain throughout World War I. In the subsequent years, Britain had to allocate nearly £2.5 billion annually.
For the relatively small area of Britain, this was a substantial sum.
To raise such a large amount, the British government had to be creative. Initially, they increased the domestic issuance of government bonds. Before the outbreak of World War I, Britain had issued £70 million in government bonds. After the war began, this figure increased at least tenfold.
However, even this enormous sum was not sufficient, prompting Britain to seek loans from various sources.
The country with which Britain had the closest ties lately was the United States. Interestingly, at that time, Britain was still a creditor to the United States, with the U.S. owing £400 million to Britain.
However, Britain needed more than £400 million, so it had to swallow its pride and ask the United States for a loan. The United States also understood that it couldn't let Britain fall during the war, as that would jeopardize the strategic barrier of the Atlantic. Therefore, as long as Britain asked, the United States was very accommodating. How much did Britain borrow? According to the post-war situation, Britain owed the United States £850 million, indicating that Britain had borrowed at least £1.2 billion from the United States.
The creditor nation before the war became a debtor nation after the war. The post-war economy remained depressed and sluggish, and the international financial center shifted from London, Britain, to New York, USA. The United States urged Britain to repay the debt promptly.
Given the strong power of the United States, Britain couldn't afford to offend it and had no choice but to grit its teeth and repay the debt.
How to repay it? Britain had already spent a considerable amount of its gold reserves in the years of World War I and had no spare money. The only option Britain could use was to collect taxes from its citizens. Britain said to the United States, "I'll allocate 1% of the national tax revenue each year to repay the debt. If you don't agree, I might have to sell London."
The United States did some calculations, and the result was that Britain would need until 1965 to completely repay the debt. The United States initially disagreed but considering the special relationship with Britain, they had to accept it reluctantly.
Now, what made it even more troublesome was the recent setbacks of the British Empire. The need for replenishing weapons and equipment required astronomical funds. In this situation, how could they satisfy the appetites of the Soviets?
Eden spent a restless night in such anxiety and unease. The next morning, instead of meeting Stalin, he was greeted by the People's Commissar of Foreign Affairs, Molotov. "Did the Ambassador rest well last night?"
"Very well. What about Comrade Stalin?"
Molotov smiled apologetically. "Comrade Stalin is busy with official matters, so he sent me to discuss matters with you."
Eden frowned inwardly. What was this? A show of authority?
But he couldn't express this dissatisfaction. After all, he was in need, so he could only smile and nod. "Understood. Shall we begin?"
Both sides took their seats, and Eden went straight to the point. "Comrade Molotov, please tell me your terms, so we can discuss them openly."
Molotov nodded as if he had been prepared and straightforwardly stated a figure. "Your side needs to pay 5,000 tons of gold. Of course, this is just an advance payment, and depending on the war's consumption, we reserve the right to adjust the cost accordingly."
5,000 tons of gold? A twitch appeared at the corner of Eden's mouth. Was this outright robbery? "I'm sorry, we don't have that much gold in reserve."
Molotov continued, "Then steel, 20 million tons of steel will do."
Eden shook his head dismissively. It's worth noting that the steel production of the British Empire in the first half of this year was not even 7 million tons. 20 million tons were an exorbitant demand.
"How about grains? Your country exporting 30 million tons of grains to us, what do you think?"
"Sorry, our grain supply is also very tight." With a population of 48 million, Britain imported two-thirds of its essential food from abroad, with only one-third being domestically sourced.
Every condition presented by the Soviet Union was impossible for Britain to accept. Eden even began to suspect that the Soviets had colluded with the Germans beforehand, specifically to toy with him.
After several rejections, Molotov remained composed and said slowly, "Well, how about this? The next item is something your country should be able to afford."
A slight feeling of unease flashed through Eden's mind as he stared directly at Molotov.
"If your side agrees to cede the Indian colonies to us, we can immediately send troops."
The Indian colonies?!
"!!" Eden's face changed, and a hint of anger flashed in his eyes.
Since the Age of Discovery, Britain had risen to prominence, becoming the unquestionable global hegemon. Leveraging its maritime advantage, it seized numerous colonies, establishing the empire on which the sun never set, spanning five continents and four oceans.
However, among these colonies, there were clear distinctions. The importance of colonies to the British Empire varied, and there were evident differences in the degree of attention Britain paid to them.
Among the colonies, the one most valued by Britain was British India in South Asia. At that time, India was referred to as the brightest jewel in the Queen's crown. To consolidate British rule over the Indian colonies, the British monarch even went to India to be crowned as the Emperor. The British government's direct investment in the Indian colonies was significantly higher than in other colonies.
Britain considered India its lifeline, referring to it as the shining gem on the Queen's crown.
週次パワーステータス
-- 推薦
ランキング 
-- 推薦
チケット