novelSusiti Chapter 22: Buying Greece's Present with Future Orders
Chapter 22: Buying Greece's Present with Future Orders
"A stable, prosperous, and benevolent Greece..."
Sir Harding pondered Constantine's words in his heart.
He had to admit that the other party was right.
A Greece that sided with Russia, granting the Black Sea Fleet access to Aegean ports, was a disaster.
A Greece controlled by the French, a cash cow for Parisian financiers, is a problem.
The British Empire would have preferred a Greece that was close to Britain, could act as a geopolitical counterbalance, and could provide commercial convenience.
The young man before him had clearly shown him the possibilities of two other paths.
Sir Harding knew he had to offer something concrete and immediately appealing to the man to nip his idea of siding with Russia or France in the bud.
"Your Highness," Sir Harding's tone became more pragmatic, "direct financial aid, in such a substantial amount, requires going through complex parliamentary procedures. You know, our parliament... isn't always that efficient."
This is diplomatic language; the subtext is: giving money directly is difficult, and there's always the risk of complications.
Constantine gave him an "I understand" look.
He knew, of course, that even if Harding promised ten million pounds today, by the time the news reached London, after cabinet discussions, parliamentary debates, and wrangling in the Treasury, he might not even receive a million pounds in the end, and it would take forever.
From the very beginning, he never expected the British to readily hand over cash.
What he wanted was something more valuable than cash.
Constantine leaned forward, his expression turning serious, and, seizing the opportunity, presented the plan he had already considered a hundred times in his mind.
"Sir, I fully understand your concerns. Moreover, a direct loan could indeed provoke criticism and obstruction from certain pro-French factions within our Parliament."
He cleverly brought up the power of Deriples and the French, making Sir Harding realize that he, Constantine, was also facing pressure at home and needed stronger support from the British.
"So, I have a better suggestion."
"Oh?" Sir Harding's interest was piqued.
"We don't want money directly," Constantine said, each word like a precisely calculated weight on a scale. "We hope that the Greek government will issue a 'National Recovery Bond' to the whole of Europe."
"Bonds?" Sir Harding frowned.
Issuing bonds is nothing new these days. But given Greece's current near-bankruptcy credit rating, its bonds are practically worthless. Who would buy them except an unsuspecting fool?
"Yes, bonds." Constantine nodded, then stated the core of the plan, "The total amount of these bonds is tentatively set at ten million pounds. They will be used for twenty years to repair the port, build railways, reform the army, and... repay some of the old debts."
"What we need is not for the British Empire to directly buy these bonds."
His gaze was like the sharpest dagger, piercing Harding's heart.
"What we need is for the British government to provide a 'sovereign credit guarantee' for this bond!"
Sovereign credit guarantee!
These six words, like a thunderclap, exploded in Sir Harding's mind!
He instantly understood Constantine's entire intention!
What a genius, and what a bold idea!
Greece's credit is a pile of junk, but the credit of the British Empire is the world's most solid hard currency! More reliable than gold!
Once this £10 million "Greek National Recovery Bond" is labeled "guaranteed by the British Empire," it will no longer be a Greek bond, but a British bond!
It will instantly transform from a piece of worthless paper that no one cares about into a hot commodity that bankers and tycoons across Europe are scrambling to buy!
Constantine didn't need the British government to spend a single penny in cash!
He simply borrowed the prestigious name of the "British Empire" to openly and legitimately "make money" in the market!
That was a brilliant move – getting something for nothing!
A look of hesitation appeared on Sir Harding's face.
Sovereign guarantees are no joke. This essentially ties Britain's credit to Greece's future. If Greece is unable to repay the principal and interest after twenty years, the British government will have to bail it out.
The political risk is too great!
Constantine keenly noticed the hint of hesitation on Hardin's face.
He knew it was time to throw out the real bait.
“Of course, Sir.” Constantine’s tone became relaxed, as if he were discussing a routine business deal. “We don’t let our friends help us for nothing.”
He held up one finger.
"First, in return, I, as Crown Prince of Greece, pledge that, starting today, for the next ten years, all naval ship orders of the Kingdom of Greece, including capital warships, cruisers and destroyers, will be given priority and will only be considered to be undertaken by British shipyards such as Armstrong and Vickers."
This condition was like a red-hot branding iron, branding hard into Harding's heart!
Ten years! All naval orders!
What does this mean in today's increasingly fierce naval competition?
This means a stable, continuous, and potentially massive deal totaling millions or even tens of millions of pounds!
This means that the British shipbuilding industry will reap a steady stream of profits and provide tens of thousands of jobs!
This was too tempting for an empire whose lifeline was its navy and sea transport!
Seeing the gleam in Sir Harding's eyes, Constantine knew the fish had taken the bait.
He held up his second finger.
"Secondly, Greece possesses one of the largest merchant fleets in Europe, with captains and sailors throughout the Mediterranean. I pledge that the Royal Greek Merchant Marine will establish a strategic partnership with the British Mediterranean Fleet. We will provide priority escort and resupply services to all British merchant ships flying the Union Jack and transiting the Suez Canal."
"Especially in some sensitive waters where it is inconvenient for British warships to be present."
That was a very well said statement.
The phrase "inconvenient to appear" alludes to regions that could potentially trigger diplomatic disputes, while the presence of Greek merchant ships in a civilian and neutral capacity perfectly avoids these risks.
This is tantamount to adding an unofficial, yet extremely effective, security guarantee to the Suez Canal, the most important lifeline of the British Empire, without using a single soldier of the Royal Navy!
These two conditions are related to two things: one is about huge commercial interests, and the other is about core strategic security.
All Britain needs to do is provide a "credit guarantee".
They used a seemingly risky promise, but one that would likely be kept as long as Greece didn't collapse completely, to lock in commercial interests and strategic advantages for the next few decades.
This deal...
Sir Harding's breathing began to quicken.
He realized that he was no longer assessing risks, but calculating... profits!
This young man was neither a threat nor a beggar.
He is a top-notch designer!
He devised a "win-win" trap that Britain could not refuse!
Sir Harding's eyes lit up completely.
He looked at Constantine with the same gaze he would give a rare treasure.
"Your Highness, your suggestion... is truly constructive!"
His voice carried a hint of barely concealed excitement.
"I will report your proposal, verbatim, to London as quickly as possible!"
"I believe that His Excellency the Prime Minister and the Foreign Secretary will certainly show sufficient importance to your 'friendship'!"