Holy Roman Empire

Chapter 619: The Canal Issue

After the balance of power was disrupted, the chaos many anticipated did not occur. The only nations actively vying for colonial territories were Britain, France, and Austria.

It wasn’t that other colonial empires didn’t want to compete—they simply lacked the strength. Most were barely able to hold onto their existing territories, let alone participate in the scramble for new ones.

With fewer competitors, the situation was naturally more favorable. If these disputes had been resolved through negotiations, Britain, France, and Austria likely wouldn’t have been able to monopolize the spoils.

The British government’s seemingly reckless behavior was, in fact, the result of careful calculation. At present, the only losers are the smaller nations. While they may harbor resentment, they had no choice but to swallow their discontent.

Vienna Palace

Foreign Minister Wessenberg reported, “Your Majesty, news has just arrived from South America. The French are in talks with the Colombian government to revive the Panama Canal project.”

Franz frowned, “Do we know France’s true intentions?”

The Panama Canal has long been a troubled endeavor, with plans existing for centuries but making little progress.

As early as 1534, the Spanish conducted surveys and even built a trail to facilitate canal construction. However, the plan was abandoned when war erupted in Europe.

In 1814, the Spanish once again revisited the canal project, only for it to be interrupted by the outbreak of colonial uprisings.

The Republic of Colombia also proposed a canal project, but when Austria established control over Central America, the plans were shelved yet again.

From the perspective of the Republic of Colombia, the opening of the Panama Canal could indeed bring substantial economic benefits, but strategically, it would greatly increase the pressures they face.

Treasure always invites trouble.

Before the canal’s construction, the Panama region held limited value and wasn’t worth coveting. Once the canal becomes operational, the situation will change drastically. What could the Republic of Colombia rely on to secure Panama?

Rely on the French?

That would be akin to inviting a wolf into the house. If the canal became a reality, France would undoubtedly be among those vying for control of the Panama region.

Foreign Minister Wessenberg said, “At present, our intelligence is insufficient to determine France’s true intentions. On the surface, it appears to be the independent initiative of capitalists, with no overt involvement from the French government. This could very well be a test.”

Franz nodded. This seemed to be the most reasonable explanation.

Austria had been operating in Central America for two decades, firmly entrenching its influence, which had already extended into the Panama region.

Since the French strategic failure in Mexico, their influence in the Americas had plummeted, making it nearly impossible for them to compete with Austria.

While the prospect of building the Panama Canal offered immense benefits, it also carried significant risks. If Austria decided to deploy its military and seize the Panama region, the French investment would likely suffer a massive loss, if not become entirely worthless.

After some thought, Franz remarked, “No matter what the French are planning, we will ignore them. If the canal project is initiated, we will fabricate an excuse to declare war on Colombia and directly take over the Panama region.”

Under Franz’s “butterfly effect,” the international situation had become completely unrecognizable. The advantage of familiarity with historical events had long since vanished.

Without the benefit of foresight, the only option was to adapt to changing circumstances. Whatever France’s intentions, one thing was certain: ensuring the Panama Canal never becomes operational is the right course of action.

…

Since the French proposed opening the Panama Canal, President Aquileo Parra Gómez of the Republic of Colombia has been plagued with headaches.

The immense economic value that the Panama Canal could bring was obvious to him. But the prerequisite was that Colombia had the strength to secure it.

Austria’s infiltration into Colombia was no secret, especially in the Panama region, where the largest demographic group was German immigrants.

With so many local collaborators, should war break out, the Panama region would likely fall within days. Everyone was aware of this underlying threat, but no one dared address it.

The Republic of Colombia was mired in internal strife, having gone through twelve presidents in the past thirteen years, averaging almost one president per year.

Originally, President Aquileo Parra Gómez had no plans to deal with this issue. The fact that Austria hadn’t yet targeted them was already a stroke of luck. Who would dare provoke trouble?

However, the arrival of the French exposed this buried problem. Domestic capitalists were enthusiastically promoting the benefits of opening the Panama Canal, paying no mind to the accompanying risks.

Of course, from the standpoint of the capitalists, opening the Panama Canal was indeed advantageous. Even if the Panama region were lost, it wouldn’t stop them from conducting business.

Colombian capitalists were not purely local nationalists and compradors dominated, with influences from Britain, France, Austria, the United States, and Spain all present.

Aquileo Parra Gómez said, “Mr. Nino, I cannot approve your canal proposal. Unless your government can convince the Austrians, we cannot restart the Panama Canal project. It is a matter of our territorial and strategic security.”

Nino smiled faintly, “Mr. President, the Austrians are pressing aggressively and have already infiltrated the Panama region. Don’t you want to free yourself from the Austrian threat?

Once the Panama Canal is opened, your country will have the canal as a bargaining chip. The major European powers won’t sit idly by and let Austria control this golden waterway.

By introducing the involvement of various powers, even if Austria wanted to act, they would have to consider the positions of the other European nations.

The Austrian government isn’t reckless. A single Panama Canal isn’t enough to make them take such risks. The danger isn’t as great as you imagine.”

No matter how much Nino tried to persuade him, Aquileo Parra Gómez remained unmoved. No matter how enticing the French made it sound, it was nothing but castles in the air.

Indeed, once the Panama Canal was opened, other powers might prevent Austria from monopolizing the canal, but that didn’t mean they would let the Republic of Colombia control it either.

And let’s not forget, wasn’t all this French effort aimed at securing the dominant role over the Panama Canal for themselves?

Aquileo Parra Gómez was well aware of Colombia’s limitations. Given its strength, the Republic of Colombia would have no way to gain control over the canal, nor even claim much economic benefit from it.

Without sufficient benefits, why take the risk? Austria wasn’t an easy target. If they provoked the Austrian government and it retaliated by crushing them, what would they do then?

In these times, might makes right and weakness is a sin. Aquileo Parra Gómez certainly didn’t believe the French would go to war with Austria over Colombia’s interests.

Aquileo Parra Gómez said, “Mr. Nino, that is merely your personal judgment and does not represent the positions of the governments of European nations.

The Panama Canal is still only a theoretical concept. We have sent people to conduct surveys, and it is far from simple to dig a large canal in Panama.

Your country has excavated the Suez Canal, so you should understand the difficulty of such a project. The conditions in Panama are even worse and would require massive investments.

Without Austria’s consent, this canal might never become navigable if they chose to interfere. European countries would not oppose Austria over an unnavigable canal. Even your nation might not be willing to support us in such a scenario.”

This was the crux of the issue: the value of the Panama Canal could only be realized after it became operational. At this stage, when nothing yet existed, hoping to win support through rhetoric alone was an insult to everyone’s intelligence.

The Panama region wasn’t the only place in Central America where a canal could be dug. However, compared to other locations, Panama offered the narrowest land passage.

This was its advantage, but it also came with disadvantages. For instance, Panama was rife with venomous insects, which would pose a severe threat to the safety of the workers.

In this era, human lives might be cheap, but widespread casualties would still increase costs significantly.

These issues might not have been apparent to the French, but they were impossible to hide from the local power, the Republic of Colombia. Otherwise, Colombia wouldn’t have given up on developing this golden waterway themselves.

Nino realized that trying to get something for nothing was out of the question. Without substantial benefits, it would be difficult to gain the cooperation of the Colombian government.

“Mr. President, if your nation grants us the rights to develop the canal, these problems will no longer be issues.

You can rest assured. Given the immense investment required for the canal project, we would never risk wasting our own funds.

As a return, we are willing to persuade the Banque de Paris to provide your nation with an interest-free loan of 100 million francs to help you weather the economic crisis.”

Aquileo Parra Gómez’s face darkened. This was no offer of assistance. It was clearly an attempt to exploit their situation and strike while the iron was hot.

Following the spread of the economic crisis, European countries such as Britain, France, and Austria flooded overseas markets with their surplus goods at low prices. South America was among the hardest-hit regions, and the Republic of Colombia was no exception.