Chapter 803 Trade Deficit

Failing to leave the main force of the French army, Hutier and others did not have the interest to continue chasing down the Egyptian colonial army. After the end of the battle, the Eighth Division immediately began a large conscription campaign.

In just one week, the establishment of the Eighth Division has tripled, and all the young men in the surrounding area have been recruited.

Finally, there is still a conscience, and there is no real school rogue who integrates men, women and children into the army as cannon fodder.

The army marched forward mightily along the Nile River, turning a blind eye to the cities along the way, and choosing to start with the plantations in the countryside.

While destroying the manor, he recruited enslaved Egyptians into the army and spread the idea of ​​national independence.

Relying on bullying the soft and fearing the hard, the Eighth Division was smooth sailing, expanding rapidly like a snowball.

In contrast, the progress of the main force of the insurgent army is much worse. Unlike Hutier and others who just voted and left, the upper echelons of the rebel army still have pursuits.

If you want to be a warlord, you naturally have to have a site. Mahdi, the leader, could no longer hold the ground, and all the powerful factions were dispatched to grab the territory.

Even in order to grab the site, they fought a lot. If it weren't for the threat of the French, it is estimated that the rebels themselves would have split up.

In order to unite the insurgents and jointly fight against the French counterattacks, Lieutenant General Gerret has repeatedly coordinated the relations between all parties.

However, the mess is still going to be messy. The composition of the rebel army was too complex, and internal contradictions emerged one after another. It was only under the threat of the French that an empty unity was maintained.

Mahdi, the leader of the rebel army, was very dissatisfied with this situation. However, the matter of blowing up the Aswan Dam earlier made his prestige within the rebel army plummet.

If it weren't for the support of the British, whether he would still be able to sit firmly in the position of the boss is still unknown.

At this time, if he didn't know that he was tricked by the British, Mahdi would not be able to leave a splendid name in the original time and space.

Facts have once again proved that any pot can be carried, but the black pot cannot be touched.

With the reputation of being ruthless and ruthless, Mahdi has difficulty recruiting younger brothers. Everyone really does not like this boss who may betray their own people at any time.

Affected by this, Lei Tings, the No. 2 figure in the uprising army, directly took his troops and set off to the valley plain, preparing to separate one side.

There was nothing Mahdi could do about it. Although he won the first round of the anti-encirclement and suppression war, his political popularity also plummeted.

Without substantial constraints, the insurgent army, which is only based on personal prestige, is itself a loose alliance.

Out of desperation, Mahdi could only join the ranks of the turf. This made Lieutenant General Jarrett who wanted to attack Huanglong very dissatisfied.

At the headquarters of the uprising army, Lieutenant General Jarret said righteously: "Everyone, the crisis has just begun, and it is far from the time to enjoy the fruits of victory.

The French are not going to fail, and it won't be long before they make a comeback, and we won't be dealing with the rabble of the colonies.

The name of the world's first army, you must have heard of it. This was not blown out by the French, but shot from the battlefield one by one.

One victory was won by fluke, but the same tactics could not be used a second time. After playing once, the French can't play a second time.

In the future, we will face an unprecedented struggle. To gain the upper hand in the next battle, we must take this place first. "

Looking at the position where Lieutenant General Jarrett's baton was pointing, it was not unexpected that it was Cairo.

This ancient city, which has political, economic and military value at the same time, is crucial to the next battle of the rebel army.

After winning Cairo, the rebels had a chance of independence from the French.

A middle-aged man asked suspiciously, "Your Excellency Lieutenant General, hasn't the Eighth Division already set off for Cairo?"

In his opinion, the French army in Cairo had suffered heavy losses in the battle not long ago, and now it was at its most emptied time, and could not stop the Eighth Division at all.

Jarret shook his head: "Esson, you are too optimistic, Cairo is different from the small towns you have encountered.

In fact, the reason why the rebel army was going well was that the French in these small towns were so frightened that they did not organize a decent confrontation at all.

Cairo is not the same, here is the center of Egypt, the French will certainly not give up.

The news of the defeat on the front line has been passed back, and the French who stayed behind estimated that a new garrison had been organized at this moment.

In the absence of heavy firepower, the Eighth Division wanted to capture the city of Cairo, which the French were strictly guarding. "

Frankly speaking, Gerret was still very satisfied with the Eighth Division commanded by the Austrians.

Whether destroying cotton plantations along the way, or heading straight for the delta, was very much in Britain's interest.

Judging from the current situation, Egypt's cotton production capacity is destined to plummet this year, and it will be difficult to recover in the next few years.

This is undoubtedly the greatest good news for British cotton spinning enterprises. This is the best time to seize the market.

Although this was not planned by Jarrett, it did not prevent him from taking the credit for himself.

Politics is also about equal exchange. As the leader of this Egyptian rebellion, after returning to China, he will naturally receive a return from domestic enterprises.

It may be economic, or it may be political. In short, Lieutenant General Jarrett made a lot of money this time.

Inciting the insurgents to attack Cairo was only part of Lieutenant General Jarrett's plan, and if possible he would

The hope is that the insurgent army will approach the Suez Canal.

It is best to block the navigation of the canal, and then the British Empire can use the opportunity to defend the navigation of the canal to deepen its power into the Suez Canal area.

...

The capital market is sensitive. Affected by the defeat in the Egyptian battlefield, the share prices of textile companies in Paris plummeted, and many companies engaged in the operation of Egyptian plantations went bankrupt.

In just one week, the Paris stock market fell by 11.4%, and the market value of billions of francs was evaporated.

International cotton prices also fluctuated violently. In London's cotton futures market, cotton prices soared by a third.

Under this double blow, the French cotton textile industry ushered in the biggest cold winter.

Affected by the reduction in the supply of raw materials, countless companies announced layoffs and production cuts. For a time, the social unemployment rate soared, and the French economy faced challenges again.

Although he had been prepared in his heart, when all this happened, Napoleon IV was still like a lifetime.

No matter how bitter my heart is, we still find a way to solve the problem, otherwise a new round of economic crisis will break out again.

Having experienced the Paris Revolution, Napoleon IV was wary of an economic crisis that might shake the foundations of his rule.

"The domestic economy continues to deteriorate, what plans does the Ministry of Economy have?"

After some thought, Elsa, Minister of Economic Affairs, replied cautiously: "This economic turmoil is mainly affected by the rebellion in Egypt, and the cotton production capacity has dropped significantly.

With the drought in North America this year, cotton production capacity has declined, and cotton prices in the international market have risen sharply.

The Ministry of Economy suggested that the government temporarily exempt cotton import duties, reduce the cost of imported raw materials for textile enterprises, and at the same time provide them with low-interest loans to tide over the difficulties. "

Is it possible to reduce tariffs?

the answer is negative.

The supply of cotton in the international market is insufficient, which means that there must be companies that cannot purchase enough cotton.

Capital cooperation is also about first-come, first-served. Capitalists engaged in cotton wholesale will definitely choose to cooperate with reliable old customers at similar prices.

Many supply partnerships have lasted for years, or even decades, and are simply not something that latecomers can easily leverage.

Most of these enterprises are concentrated in Britain. As a rising star, the French cotton textile industry developed after occupying the cotton producing area of ​​Egypt.

Unless they can buy at a high price, French textile companies will not be able to buy enough cotton in the international market.

It is precisely because of knowing all this that many companies announced layoffs and production cuts in advance before the cotton reserves were exhausted to deal with the next crisis.

Foreign Secretary Terence Burkin reminded: "It's not that simple, international cotton wholesalers are not fools, and it's impossible for them not to take such a good opportunity.

If nothing else, they may use this as a threat to permanently repeal import tariffs on cotton. "

Tariff barriers are also one of the main reasons why the French cotton plantation economy can develop.

The high tariffs made the originally cheap cotton lose its competitiveness after entering the French market, and local plantation merchants made a fortune.

Driven by interests, the number of capitalists investing in cotton plantations in recent years is also increasing, and the French have basically achieved cotton self-sufficiency.

This damages the interests of overseas cotton growers and wholesalers, and everyone is eager to see this market.

In normal times, it is naturally nothing. With the strength of France, these interest groups cannot be shaken.

But now it is different. There is a problem with the cotton supply chain in France, and it has to find a way from the international market.

Elsa, the economy minister, objected: "It is impossible to abolish import duties on cotton. Without sufficient incentives, domestic capitalists simply will not put money into cotton plantations.

Moreover, this is not just a cotton issue, but also involves other industries.

Once we compromise here, there will be endless calls for us to abolish tariffs.

With domestic economic development, we must adopt tariff barriers to protect domestic national industries for a long time to come. "

This is a fact that has been demonstrated in previous economic crises. Participating in international competition, France really can't do it right now.

Chancellor of the Exchequer Roy Vernon: "Not only that, but our foreign reserves have fallen sharply in recent times.

Now it is necessary to purchase a large amount of cotton from the outside world, which is bound to consume a large amount of foreign exchange, and the foreign exchange reserves of the empire have fallen into a very dangerous level.

As of now, our holdings of GBP 31.876 million, Aegis 65.423 million, plus other niche currencies, total about 1.78 billion francs. "

Since the Paris Revolution was shot, the French economy has been running a trade deficit for many years. Relying on tariff barriers, we managed to achieve a balance of trade. After a few days of good times, we are now in deficit again.

Long-term capital outflow is obviously not conducive to the development of the national economy. Finding a way to reverse the trade deficit has become a major problem for the French government right now.

Economy Secretary Elsa: "The Marquis is right, in order to restore the domestic economy, we must find a way to get rid of the trade deficit.

There is no need to think about increasing exports for the time being. Even if there are no tariff barriers, our industrial and commercial products lack international competition.

Competitiveness.

In a short period of time, the best way to solve the problem is to reduce foreign exchange spending.

At present, the large comprehensive commodities we import are mainly: grain and coal.

Indigenous coal production is insufficient, and no large coal mines have been found in North Africa. The only large coal mine under our control is still far away in the Indo-China Peninsula.

However, to meet local needs, the production capacity is still far from enough, and it has to bear high transportation costs, and self-sufficiency is simply impossible.

The only thing that can be figured out is food. Algeria, Tunisia, and Morocco all have areas suitable for agricultural production. As long as they are developed to meet domestic needs, it is not a problem at all.

The return on investment in grain planting is too low, and capitalists will not participate, and can only rely on government investment.

This is also a good thing. As long as we control this level well, we can ensure that we can achieve food self-sufficiency without harming the interests of domestic farmers.

Not only can it save a lot of foreign exchange expenses, it can also fight against our competitors on the European continent and ensure the strategic security of food. "

Ever since she came up with the African Farms program, Elsa has become an advocate for the policy, touting its benefits.

Of course, this is just an outside view. In fact, Elsa did this, and it was more of a last resort.

Withdrawing from the free trade system also has advantages and disadvantages. While gaining benefits, it also needs to bear the disadvantages brought about by this policy.

You limit me, and I naturally limit you. Affected by high tariffs, French industrial and commercial exports have dropped sharply.

This is just a small problem. Relying on trade protection, international competitors are driven away, and the share left in the local market is enough for the capitalists to make up for the loss.

But France is still a big importer of industrial raw materials?

The African development strategy of that year was one of the measures that the French government wanted to get rid of its dependence on the outside world.

Although the development of North Africa has been slow due to insufficient capital investment, it can be considered a success in terms of results.

In a variety of economic crops, including cotton, France has basically achieved self-sufficiency, and even if it is not self-sufficient, its demand for imports has also decreased.

However, this is not enough. Not all resources are capable of self-hematopoiesis, and coal and food are still flawed.

Elsa is naturally powerless against non-renewable coal. Faced with the trade deficit, he can only choose the food that can be solved.