Chapter 58: G3 Order
The United States and Britain needed Datang's gold to support currency reform, and Zhang Meng saw this opportunity to deliberately manipulate Britain and force the British to buy dozens of small islands in the Pacific Ocean before the MacDonald government succumbed.
The trade dispute between Britain and the United States is very serious, because both countries have carried out large-scale competitive currency devaluation, although they were able to increase their foreign trade income for a time, but the victims of unfair competition for a long time are the people of both countries, which is also the fundamental reason why Britain and the United States have to sit down and negotiate to rebuild the monetary system.
But neither the United States nor the United Kingdom could come up with enough benchmark gold, and rebuilding the bank's credibility became a hollow talk, forcing the two countries to turn to the Tang Empire, which currently had one-third of its gold reserves in the Tang Empire's coffers.
Britain and the United States obviously want to unite to pull Datang into the gang and use Datang's gold reserves to restore bank credit, which Zhang Meng has already seen, but he can't afford to make a profit, and Britain and the United States want him to help, so they have to pay the price. And Zhang Meng had already bought the Pacific islands he wanted from the United States, so the Pacific islands controlled by the British became Zhang Meng's target.
Zhang Meng was not in a hurry, so he deliberately delayed, if Britain did not agree to sell the island, then there was no need to talk about it, anyway, the export quota of the Tang Empire was very small, and the depreciation of competitive currencies did not have much impact on it. Hoover was the most anxious, because one of his re-election promises was to rebuild bank credit, which was still a trick given to him by Zhang Meng, the purpose of which was to make Hoover have to turn to Datang for help.
Now Zhang Meng's plan has succeeded, and under the pressure of the Hoover administration to the British government, MacDonald had to transfer more than a dozen islands in the British Central and South Pacific to the Tang Empire.
Although MacDonald was very unhappy in his heart. But in the face of the country's core interests, he had to make concessions, only sighing that Zhang Meng was too cunning.
"Your Highness, this is an island transfer agreement signed by the British government. Please stamp the jade seal, and the islands will be ours. ”
Foreign Minister Liu Kaiwei handed over the transfer agreement to Zhang Meng, and according to the regulations, as long as Zhang Meng signed the jade seal on it, the transfer agreement would take effect immediately.
Zhang Meng looked at the various transfer terms above, and only spent a dozen yuan symbolically, and one dollar and an island were like giving them away for nothing.
Zhang Meng smiled slightly. I didn't expect MacDonald to be quite generous, but he gave it away for nothing but it was the most clever means.
Zhang Meng signed and stamped the jade seal, and the agreement took effect immediately.
As stipulated in the agreement. Britain transferred its colonies in the Pacific, except for Australia and New Zealand, to the Tang Empire for one dollar. In this way, Britain completely withdrew from the struggle for hegemony in the Pacific region, just as Britain voluntarily ceded hegemony in the Caribbean during the Spanish-American War in 1898. It was originally to avoid conflict with the United States. Now, in order to avoid a military conflict with the Tang Empire, this marks a further contraction of Britain's maritime supremacy, and it is no longer the super maritime supremacy of the past.
However, in return, the Tang Empire will also formally join the negotiations between Britain, the United States and Tang on the reconstruction of the financial and monetary system.
"Your Highness, now that the Empire has purchased the American colonies and the British colonies in the Pacific region, there are still more than a dozen islands in the absolute defense circle of the Empire that are currently under French control. The next step is not to submit a note to France to buy the islands. ”
Zhang Meng nodded and said, "You can talk to them." But I'm afraid they won't be so easy to say yes. ”
Liu Kaiwei said: "The French navy is not as good as Italy's now, and it is not an opponent of the imperial navy in the Pacific, even if the empire sends troops to seize the islands of the French, I am afraid they will have no choice." ”
Zhang Meng waved his hand and said, "Don't worry!" Although the French navy is similar, it has a great influence in the international community. Most of those islands they control are in the South Pacific, in our strategic rear. At present, the potential opponents of the empire are all in the North Pacific, and there is no pressure in the South Pacific, so it is better not to provoke France for the time being. ”
Liu Kaiwei said: "The minister obeys the order, but can he take other more covert means to take it?" ”
Zhang Meng asked, "What do you mean?" ”
Liu Kaiwei explained: "The minister means that the inhabitants of the French islands can be instigated to revolt, and we will secretly provide funds and weapons, just like the seizure of the Fiji Islands. ”
Zhang Meng thought for a while, and then said: "Yes, put some pressure on the French appropriately, so that they understand our attitude, if they can sell it to us peacefully, it will be the best, otherwise we will eventually annex it by force." ”
Zhang Meng discussed with Liu Kaiwei for a long time, and ordered a think tank to participate in the formulation of negotiation conditions in line with the economic interests of the Tang Empire.
These think tanks have advised Zhang Meng on Wall Street and in Paris, and they are all Shijie-level masters in the field of finance and currency.
Liu Kaiwei continued to serve as the negotiating minister, and the next day he flew to Washington to consult and negotiate with the British and American negotiating ministers on the reconstruction of the financial and monetary system.
After more than a dozen rounds of negotiations, the three parties bargained and found a balance between their respective interests, and thus formulated a new international financial and monetary order -- the G3 group was born.
The G3 group represents the international financial and monetary system composed of the central banks of the United States, Britain and Tang Dynasty, which determines that the Federal Reserve, the Bank of England and the Datang Bank will form a joint supervisory committee to supervise the scale of the central banks of the three countries to print money and issue money, and to achieve a stable monetary system in which the US dollar is pegged to gold and the British pound and Tang Yuan are pegged to the US dollar.
In order to balance the respective interests of the three countries, the Federal Reserve depreciated the US dollar to 55% again and the British pound to 45% in accordance with the G3 regulations, and Tang Yuan maintained a one-to-one relationship with the US dollar, which also depreciated to 55%. The price of gold per ounce was set at US$35, and Datang Bank lent 3,000 tons of gold to the Federal Reserve and 1,500 tons of gold to the Bank of England respectively to guarantee the international payment credit of the Federal Reserve and the Bank of England, and to help the United States and Britain restore the credibility of their banks and resolve the financial crisis.
In fact, the Tang Empire's 15,000 tons of gold reserves have already spread throughout Shijie, and everyone in Shijie knows that only the Tang Empire's currency, Tang Yuan, is a store of value, so when the United States, Britain and Tang announced the establishment of the G3 group, and the Tang Empire announced the credibility guarantee for the central banks of the United States and Britain, the dollar and the pound have actually restored their credibility.
However, for the sake of safety, the Federal Reserve still pledged 3.75 billion US dollars in banknotes to Datang Bank in the form of long-term Treasury bonds with high interest rates, and shipped back 3,000 tons of gold from Datang Bank to meet the needs of major domestic banks to exchange gold and US dollars, so that the American people can restore confidence in banks.
The Bank of England directly took back the 1,500 tons of gold and did not pledge any long-term British pound bonds to Datang Bank, because Datang Bank already owed money to the Bank of England. Originally, Datang Bank would not begin to repay the Bank of England's borrowings until five or six years later, but with the establishment of the G3 monetary system, the pound will not depreciate anymore, and it will not be cheap, so Datang Bank deliberately used this gold to pay off the debt owed to the British. In this regard, the Bank of England knows that it has suffered a big loss, but there is nothing it can do.
The establishment of the G3 group and the establishment of the G3 monetary system have made the United Kingdom, the United States and Tang Tang become the new formulators of the rules of the game in the global financial and monetary system.
The British are a little sad, knowing that before the First World War, the rules of the game were only set by the British, who controlled the global monetary and financial system and grabbed countless profits. Now that the United States and Datang have been added, this big cake is no longer exclusive to the British.
The Tang people are the most happy, because they can become the rule-makers of the global monetary system, the international status of the Tang Empire suddenly skyrocketed, not only a military power, but also an economic power that affects the Shijie economy, which marks that the Tang Empire officially ranks among the first-class powers of Shijie, for the entire Chinese nation, it is a thing worth celebrating. (To be continued......)