Chapter 497 - Control of the European Economy

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[Today's first update, the second one may be very late, friends who can't wait, just wash and sleep first, and watch it tomorrow]

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The Oriental War dragged down France, Indochina gained **, and the Chinese Empire restored control of Indochina since the Sino-French War, completely expelling France from Asia. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½

However, the contest between East and West is not over, it is only the beginning.

The Soviet Union played a large role in French Indochina and became a tool of the Chinese Empire against France. However, the activities of the Soviet Union in the British colonies failed to develop, and were brutally suppressed by the British colonial authorities, and finally failed to form the situation of establishing a Soviet state in French Indochina, so that the Chinese Empire could not subvert the British colonial regime under the pretense of the Soviet Union.

But this did not mean that the Chinese Empire had given up its peeping into the British colonies, and even without the Soviet Union as its gunner, the Chinese Empire would always be able to find excuses and opportunities.

Britain spent so much money to suppress the revolutionary uprisings in its colonies that it was financially overwhelmed, and it was not much better off than France. In particular, the outbreak of non-violent non-cooperation in British India dealt a heavy blow to British rule over the Indian colonies.

On August 1, 1920, Gandhi used his letter of resignation as a signal to start a non-cooperation movement? Gandhi's movements had an immediate impact? Many civil servants resigned with him, students left the school, and the government and the school were empty? The All-India Parliament held a special session in Kolkata in September and voted by a majority of votes to approve of Gandhi's proposal? Gandhi and his friend Mullah Na Shakot Ali traveled the country together and were warmly welcomed everywhere?

Under the influence of the First World War and the Russian Revolution, India launched a national liberation movement**. In order to consolidate colonial rule, Britain prepared constitutional reforms on the one hand. Pacify and co-opt the Indian upper classes, and on the other hand, enact the Lorat Act (February 1919) to intensify repression. April 13ri, 1919. The Amritsar massacre and the anti-British struggle quickly increased. In September 1920, Gandhi proposed a non-violent non-cooperation plan. Gandhi declared that the aim of the struggle was to achieve self-government, "within the empire if possible, and independence from the empire if necessary." At Gandhi's call, the people staged strikes, school strikes, market boycotts, and rallies and marches, forming an anti-British torrent.

On February 5, 1922, 2,000 peasants from Choricola Village, Gorakpur County, United Province (present-day Uttar Pradesh) sent 22 Jingcha together with the Jingcha Bureau. Burned. The movement went beyond non-violent struggle, and Gandhi rushed to stop it when he heard about it. On 12 February, the Congress Party adopted a Gbardoori resolution condemning the "deviant" behavior of the masses and deciding to stop the non-violent non-cooperation movement indefinitely. On March 10, Gandhi was imprisoned. The movement was brutally suppressed.

Although the non-violent non-cooperation movement has been suppressed, its impact has been significant. It shook British rule over the Indian colonies and at the same time pinned down most of the British overseas colonial forces. As a result of the signing of the Five-Power Pact, the strength of the British Army was drastically reduced. The British army, which was already outnumbered, was deployed two-thirds of its forces to suppress the Indian revolution, making the British army very weak in other colonies.

In the post-war world economy, although bankers in various countries did not suffer losses, they made a fortune and accumulated huge wealth. But their wealth can only be maintained by national credit, and without the support of hard currencies such as gold and silver, the currency can easily depreciate. The stock market is also volatile.

Countries want to restore financial stability, but they lack gold and silver as financial cornerstones. The only big winner in the world war was the Chinese Empire, whose gold and silver reserves accounted for 90% of the world's hard currency reserves, and countries could only spend huge sums of money to buy back gold and silver from the Chinese Empire, which was the only country with a stable gold standard, and the repurchase of gold from the Chinese Empire, in addition to the issuance of treasury bonds, could only buy the dragon coins of the Chinese Empire, which relied on the introduction of investment from the Chinese Empire.

The Chinese Empire was well funded after the war, and the huge war reparations allowed the Chinese Empire to invest inexhaustible funds. Although the capitalist development of the Chinese Empire has only been more than 20 years, after the primitive accumulation of predatory capital, the Chinese Empire has entered the stage of imperialism, and the export of capital has become one of the main means for the capitalists of the Chinese Empire to plunder the world's wealth.

In order to reshape the financial system of the gold standard, European and American countries had to open their doors and grant the Chinese Empire the most favored nation status to attract investment from the Chinese Empire.

The abundant capital of the Chinese Empire quickly entered the major companies and enterprises in Europe and the United States, some of the Chinese Empire businessmen directly invested in the establishment of factories, and some of the Chinese Empire businessmen set up joint ventures with local businessmen, but more often than not, the Chinese Empire businessmen directly paid money to control the key enterprises of various countries, and then achieved the purpose of controlling the company.

By the beginning of 1925, the Chinese Empire had exported 23 billion dragon coins to European and American countries, and many well-known large enterprises in Europe and the United States had become Chinese Imperial holding companies or joint ventures, making the Chinese Empire grasp the economic lifeline of European and American countries and reap huge returns.

The Chinese Empire, with gold and silver in its hands, was the most important instrument of economic plunder of Europe and the United States. The European and American countries were deeply envious and jealous of this, but as far as the situation of each country was concerned, accepting the capital plundering of the Chinese Empire was the only way out, although the European and American countries were scraped several layers of skin by the Chinese Empire during this time, but all countries obtained the gold they rebuilt the gold standard by introducing the capital of the Chinese Empire.

Italy was the fastest country to restore the gold standard among the participating countries in Europe, because Italy's economy was small, and the gold reserves to maintain the gold standard only needed 1,200 tons, so Italy borrowed from the Chinese Empire to exchange a part of the gold, plus absorbed a part of the Chinese Empire's investment in Italy, and soon restored the gold standard. In Italy, where the gold standard was restored, the Bank of Zhongyang controlled inflation and currency depreciation, and the 1,322 to 1 dragon during the Lira War fell to 202: "And the stability of the exchange rate was maintained, so that the Italian economy began to recover."

However, Italy also paid a high price for this. In order to recycle the over-issued Italian lira banknotes. Italy has borrowed 3.2 billion dragon coins from the Chinese Empire, of which 22 large banks of the Chinese Empire used 2 billion dragon coins to recover Italian lira banknotes, and the price of recycling at that time was 1,000 lira for 1 dragon coin. As a condition for the purchase of Italian treasury bonds by the Chinese Empire. Five years later, when the Italian currency stabilized, the Imperial Bank of China held about 2,000 billion lira of Italian national debt, which was equivalent to the Chinese Empire's frenzied plundering of 8 billion dragon dollars worth of wealth from Italy in five years. This does not include the Chinese Empire's investment and holding of Italian companies, and the Italian economist Moore Siscoe pointed out that although the Italian economy has recovered, more than half of the 200 billion lira created by the Italian people every year has gone into the pockets of the Chinese Empire. It is equivalent to the Italian people contributing 2% of the GDP growth of the Chinese Empire free of charge. For every bottle of beer consumed by the citizens of the Chinese Empire, the Italians contributed three hours of wages for free.

Germany was the least devastated country in Europe by the Great War, and its industrial system was well-developed, so it recovered quickly. Germany returned to the gold standard in 1923, but as a result, it owed 5 billion dragon dollars to the Chinese Empire, and many well-known German companies became Chinese-funded companies. Deutsche Zhongyang Bank in order to restore the purchasing power of the mark. The Chinese Empire was allowed to hold 150 billion German marks in government bonds, but in fact, more than 50 banks in the Chinese Empire secretly bought large quantities of Deutsche marks from the German market. Because these bankers received official assurances from the Chinese Empire, that is, the German Zhengfu would continue to increase the value of the mark until the pre-war 10 marks to the Chinese Empire 1 dragon coin. Therefore, the bankers and merchants of the Chinese Empire gambled heavily on the appreciation of the mark. Naturally hoarding marks on a large scale.

By the time the German gold standard was restored in 1923, the Chinese Empire actually held 750 billion German marks, becoming Germany's largest creditor. Because it holds a huge amount of Deutsche Marks, not only does it extract billions of marks of huge profits from Germany every year, but once the Chinese Empire releases these marks, the German economy will collapse immediately. For this reason, Germany is obedient to the Chinese Empire, and even the political elections in Germany must first ask about the attitude of the Chinese Empire, only pro-China German politicians have a career, and any German politician who has a bad attitude towards the Chinese Empire will be ruthlessly suppressed.

Italy and Germany were the first countries in Europe to restore the gold standard, although they paid a huge price for this, their finances were controlled by the Chinese Empire, and their economies were influenced by the Chinese Empire's economy, and they became vassals of the Chinese Empire's economy. However, the two countries succeeded in stabilizing the economic turmoil brought about by the war, and the society gradually stabilized, and on the whole the gains outweighed the losses, and the sacrifice was worth it.

However, for other European countries that participated in the world war. It is still in a state of economic chaos and social turmoil. France, in particular, was the worst victim of the world war, with half of its country's cities and industrial areas destroyed by the war and its economy collapsed. After the war, although France received emergency economic assistance from the Chinese Empire, it was dragged into the whirlpool of the Turkish Revolution and the Indochina Revolution at the beginning of the war, and the three-year Greco-Turkish War and the four-year Oriental War made France's already fragile economy worse, and by 1925, France not only did not restore economic stability, but the economy was on the verge of collapse again.

The newly inaugurated French President Alexandre abandoned French Indochina to avoid a collision with the Chinese Empire. Alexander then implemented the New Deal, which focused on economic reform. Although France lost its colony in Indochina, the Chinese Empire, out of political, economic, and military considerations, feared that excessive French weakening would cause Germany to lose its balance, and that European balance was the strategic goal of the Chinese Empire.

Therefore, in order to save the French economy from controlling the lifeblood of France, Tang Shaoyi, the prime minister of the Chinese Imperial Cabinet, proposed a new round of aid to France, which was officially called the French part of the European revival plan, and France called it the "Tang Shaoyi plan".

Tang Shaoyi plans to provide a loan of 3 billion dragon dollars to France based on the population of France, which will be disbursed in five years. France used dragon coins to buy essential supplies from the Chinese Empire, the Bank of France recovered 2.5 trillion francs in banknotes, and the Central Bank of China bought 1 trillion francs of treasury bonds. The loan directly curbed the huge inflation in France, and the new franc was issued by the Banque de France, which quickly recovered the excess banknotes on the market at the exchange of 1 new franc for 420 old francs. Currency depreciation is suppressed. The Central Bank of the Imperial Republic of China sent special personnel to supervise the amount of money printed by the Bank of France.

The restoration of the French gold standard was directly under the responsibility of the Chinese Empire, and 22 very large banks, including the Imperial Bank of China and the Royal Bank, guaranteed the new franc currency, and the new franc stabilized at the ratio of 20 francs to 1 dragon coin. Direct exchange of corresponding gold and silver is allowed. The Imperial Bank of China urgently exported 1,500 tons of gold to France, which was kept by the branches of the Imperial Bank of China and the Royal Bank in Paris, France, and the gold and silver required by the Bank of France to exchange the new franc banknotes every day were checked and disbursed by the Imperial Bank of China and the Royal Bank to ensure the restoration of the gold standard.

With the urgent assistance of the Chinese Empire, France completed the restoration of the gold standard as quickly as possible, and the new franc was recognized by the French people because of the financial support of the Chinese Empire.

Tang Shaoyi planned to use the Chinese Empire's four fiscal years to help France reform the gold standard and stabilize the economy, but eight months after the implementation, France completed the gold standard restoration plan because Chinese officials far underestimated the influence of the dragon coins in France.

The French people hailed and were grateful for the large-scale assistance of the Chinese Empire to the French economy. The strong economic strength and national influence of the Chinese Empire have made all walks of life in France very confident in economic recovery, and various investors have said that under the strong financial rescue of the Chinese Empire, the French economy will definitely recover, and this confidence has made the French stock market stop falling, and investors who were originally worried about economic instability can also invest with peace of mind.

It can be said that even if the Chinese Empire only verbally aided France. It will have a positive impact on the French economy, which shows that the Chinese Empire has become an omnipotent and powerful state.

Of course. The Chinese Empire spent so much effort to save France, and the benefits were far greater than the investment in France. First of all, politically, the Chinese Empire established a close strategic cooperative relationship with France. Supporting France's economic recovery is actually used to balance the rapid recovery of the German economy and maintain the balance of Europe. Through its assistance to France, the Chinese Empire gained the affection of the French people and the French people, and Sino-French relations quickly warmed from the coldness of the Turkish question, the Suez Canal issue, and the Indochina issue.

Economically, the Chinese Empire established strong bilateral trade relations with France. Because France received a large amount of borrowing from the Chinese Empire, this money existed in the form of dragon coins, which could only be used for trade with the Chinese Empire. Of course, in the later period, the dragon coin was used as an international currency, and all countries circulated it, so part of the loan was used by France to trade with other countries, but this did not affect the total trade between China and France, and the Chinese Empire became the largest trading country in France. France has set up a separate MFN treatment for the Chinese Empire, in which the goods of the Chinese Empire enjoy ultra-low tariffs and zero tariffs (mainly to reduce the price of goods entering France), and the investors of the Chinese Empire enjoy super-national treatment for their investment in France (refer to the super-national treatment of foreign capital in China). Of course, the most striking economic is naturally the 200 billion new franc French national debt held in the hands of the Chinese Empire, which is like an aneurysm in the lifeblood of the French economy, held by the Chinese Empire, and only needs a slight pinch to deal a fatal blow to France.

At the same time, the large-scale economic aid of the Chinese Empire to France was like a shot in the arm for the national economy of the Chinese Empire, because every year after that, France's economic growth would bring good news to the GDP growth of the Chinese Empire. If for every bottle of beer consumed by the citizens of the Chinese Empire, the Italian people contributed three hours' wages for free, then for every car purchased by the citizens of the Chinese Empire, the engine of the car was given free of charge by the French people.

On the whole, the Chinese Empire's economic assistance to France undoubtedly controlled the French economy, which in turn influenced France's decision-making so that it could not have policies that threatened the Chinese Empire.

For France, Alexander Zhengfu solved France's biggest economic problems, allowing the 14th Zhengfu to be preserved. Before Alexander came to power, the opposition joked that Alexander would be ousted by the French people if he held out for less than three months.

Alexander and his cabinet of responsibilities were naturally grateful to the Chinese Empire, although they knew that the Chinese Empire had made more money in this plan, but for France, the Chinese Empire was the great benefactor of the French people, and the French people's favorability towards the Chinese Empire soared, becoming one of the most Chinese-friendly countries in the West. And President Alexander also knew that with the help of the power of the Chinese Empire, maintaining all-round cooperation with the Chinese Empire could ensure the smooth maintenance of his Zhengfu. In order to win the next general election, Alexander strengthened his cooperation with the Chinese Empire, knowing that the Chinese Empire had acquired the Greek island of Crete as a military base in order to control the western Mediterranean, so France provided the Vicchio naval base on Corsica to the Chinese Empire as a military base for the Mediterranean Fleet of the Chinese Empire.

In this regard, the Chinese Empire was naturally very happy and quickly completed the handover with the French Navy. In this way, the main sphere of activity of the Mediterranean Fleet of the Chinese Empire rapidly expanded from the western Mediterranean to the entire Mediterranean. The strategic location of Corsica is self-evident, with control of Toulon, France's largest naval base and shipyard to the north, the Italian peninsula and Sardinia to the east, a springboard to North Africa to the south, and the eastern Mediterranean to the east.

France did not have good intentions in handing over such an important naval base to the Chinese Empire. France promised to give Corsica to Italy in World War I, but it did not fulfill it until after the war, and the conflict between France and Italy was very fierce. Italy is obsessed with Corsica and has never given up the idea of occupying it, because this island is too close to the Italian peninsula, and Italy, as a peninsula country, exaggerates that the main guns of super battleships can hit from the west coast to the east coast, so Italy needs a strategic depth, and Corsica is a natural barrier, and if you get it, it is very important for Italy's national defense. After the war, Italy was very close to Germany, and at many meetings of the League of Nations, Italy did not occupy the Entente camp, but abstained from voting. The Entente was also not at ease with Italy, so France's surrender of the Corsica naval base to the use of the Imperial Chinese Navy was tantamount to directly erecting a powerful barrier of the Imperial Chinese Navy in France and Italy, and at the same time transferring Italy's ambitions and threats to Corsica to the Chinese Empire.

After the Chinese Empire obtained Corsica as a naval base, the entire Mediterranean Sea was effectively controlled, and the only obstacle was the Gibraltar base controlled by the British Navy, which was the eastern exit of the Mediterranean Sea.

France, Italy, and Greece in the Entente camp were all economic vassals of the Chinese Empire, but Britain was not. Although Britain also borrowed from the Chinese Empire on a large scale, Britain was a trading country with vast overseas colonies, and after the war Britain resumed its international merchant fleet, but the losses in the world war were too great, and the scale was far less than before the war, and it was much worse than the Chinese Empire, the world's largest merchant fleet (in 1925, the registered gross tonnage of the Chinese Empire's commercial fleet was 22.5 million tons, and the registered gross tonnage of the British commercial fleet was 7.25 million tons). Despite this, Britain had a vast colonial market, especially India, where the consumption of 200 million people was monopolized, which allowed British trade to develop rapidly.

During the World War, Britain was severely devastated by the German Navy and Air Force, and after the war, Britain's economic development was slow, but it was still faster than Germany. Because in addition to the huge colonial market, Britain also has a treasure trove of wealth, South Africa. The British colonial forces intensified their plundering of gold and diamonds in South Africa, and the British gold standard was restored by the end of 1923, only a few months later than the German declaration of the restoration of the gold standard. Originally, Britain's economic recovery was faster than Germany's, but it is a pity that Britain participated in the Russian Civil War, the Turkish Revolution, the Egyptian Revolution, and spent huge military expenditures to suppress the colonial revolution, resulting in a serious drag on the British economy