Chapter 237: France-italy Cooperation Again
It had to be admitted that since the Franco-Prussian War, German development had been put on fast forward.
After unification, the German Empire leaped to become the world’s second industrial power, and the speed of industrial development was not affected at all by the country’s unification.
In 1871, Germany’s steel output was only 251,000 tons. But last year, Germany’s annual steel output had already broken through 400,000 tons.
Although surpassed by the equally rapidly developing United States, Germany’s steel output still ranked third in the world, far exceeding France’s 300,000 tons.
It was worth mentioning that after nearly ten years of hard work, Spain’s steel output had finally reached a scale of 201,000 tons.
Although this did not seem like much, it had already surpassed the steel output of the Austro-Hungarian Empire and Russia. Even looking at the world, Spain’s steel output could rank after Britain, America, Germany, and France, claiming to be the world’s fifth largest steel producer.
However, steel output could only represent the scale in heavy industry and could not represent a country’s overall industrial level. Although Spain had surpassed the Austro-Hungarian Empire in steel output, there was still a certain gap compared to the Austro-Hungarian Empire in terms of overall industrial scale and industrial level.
It could only be said that the former Spanish colonial empire was too glorious; even after weakening for so long, it still had a certain foundation.
After several years of development, although Spain had not yet recovered its posture from its peak period, in terms of industry compared to the five great powers like the Austro-Hungarian Empire and Russia, it was not too far behind.
Spain’s industrial scale had even surpassed Russia’s, but Carlo had not done much propaganda about it, which was why the public and governments of European countries were not very aware.
In fact, during these years of economic crisis, Spain had been developing quietly, and it was currently absolutely the strongest country in Europe besides the five great powers.
Led by German officials, Carlo and Spanish officials visited several important cities in the Ruhr Area.
After completing the visit, Carlo met the controllers of famous German companies such as Krupp Company under the introduction of the German Government.
In addition to being a famous arms company, Krupp was also a technologically advanced steel company.
At the 1862 London International Exhibition of Industry and Art, the Bessemer acid converter steelmaking method, which could conveniently smelt low-quality iron ore into high-quality steel, made its debut.
In the following six years, more than 70 Bessemer acid converters were put into use in Europe, most of which were built in Germany.
Krupp Company, led by Alfred Krupp, was not only the first steel company in Germany to adopt the Bessemer acid converter, but also leaped to become a famous high-quality steel producer in Germany.
The steel produced using the Bessemer acid converter was also called “Krupp steel” within Germany, making Krupp Company famous, and it received strong support from King of Prussia Wilhelm I and Chancellor Bismarck at the time.
With the support of government power, Krupp Company quickly expanded its scale and began researching in military industry and chemical industry.
The Krupp cannon produced with Krupp steel was Alfred Krupp’s best reciprocation to the trust from Wilhelm I and Chancellor Bismarck, and it was also the trump card that led Krupp Company to prosperity.
The reason Carlo wanted to meet Alfred Krupp was not only to introduce Krupp Company’s artillery technology, but also to introduce Krupp Company’s steelmaking technology.
Steelmaking required chemistry, and the country with the most reserves of chemical talent was definitely the British Empire. In fact, many famous steelmaking methods were invented by British scientists, but the ones making heavy use of these steelmaking methods might not necessarily be the British Government.
Alfred Krupp’s talent in steelmaking technology was beyond doubt. He successively learned the Bessemer acid converter steelmaking method and the Thomas steelmaking method, keeping Krupp Company’s steelmaking technology at the forefront of the world, which was one of the reasons for Krupp Company’s prosperity.
The strength of German artillery technology was largely due to the advanced steelmaking methods. The barrel of the world-famous Krupp cannon was made of Krupp steel, and the durability of Krupp steel also created the powerful and very stable Krupp cannon.
Because Krupp Company was a private enterprise, this also increased the possibility of Spain obtaining steelmaking methods and artillery technology from Krupp Company.
Under the premise that the German Government did not oppose, Carlo was confident of reaching cooperation with Krupp Company, using the steelmaking methods mastered by Krupp Company to further increase Spain’s total steel production.
As expected, when Carlo met the famous Alfred Krupp, the other’s attitude was very respectful, and he expressed willingness to reach cooperation with the Spanish Government.
Because the economic crisis had not completely ended, Krupp Company, as a steel company, was also affected. More importantly, the other major source of income for Krupp Company, the military industry, lacked orders at this time, and the company’s finances were still relatively tight.
Although Krupp Company was willing to cooperate with Spain, when Alfred Krupp heard that the cooperation Carlo mentioned was purchasing Krupp Company’s artillery technology and steelmaking technology, even Alfred Krupp was somewhat shocked and hesitant.
Steelmaking technology and artillery technology were the foundation of Krupp Company’s existence, let alone introducing both technologies at the same time.
But considering that it was still in the stage of economic crisis, plus cooperating with Spain would basically not affect Krupp Company’s business in Germany, this made Alfred Krupp himself somewhat hesitant.
After all, although Krupp Company’s steelmaking method was advanced, it was learned and improved from British steelmaking methods.
Krupp Company had hardly paid any research and development costs; if disguising himself to enter British factories to learn steelmaking technology counted for Krupp himself, that might be Krupp Company’s only cost.
If these steelmaking technologies could be exchanged for sufficient funds to help the company survive the economic crisis, it would not be too much of a loss for Krupp Company.
After thinking it over, Alfred Krupp still could not make up his mind. He could only express apology to Carlo, saying that such a major matter needed discussion with the company’s internal management, and it would take some time to give Carlo a reply.
Carlo naturally had no objection. During the stage when Krupp Company was discussing internally, Carlo visited some factories in the Ruhr industrial zone again and had Spanish officials record the planning of the German Ruhr Area and the advantages of some factories.
Alfred Krupp did not keep Carlo waiting long. Just the next day, he invited Carlo to visit Krupp Company again and held a long discussion on the cooperation to be reached by both sides.
Of course, the one responsible for the discussion was Carlo’s subordinate brought over. Carlo’s main task was to visit Krupp Company’s steel mills and armories to see what unique features the famous Krupp Company had.
To welcome Carlo’s arrival, Krupp Company’s preparations were very adequate. Perhaps it was also to showcase the company’s capabilities in order to obtain more funds and benefits during technology transfer.
Krupp Company directly prepared a room exceeding 300 square meters to display its achievements. What was shown to Carlo included models of the production processes in pig iron and cast steel workshops, steel ingots, train axles, and samples of Krupp cannons.
These products represented Krupp Company’s most advanced steelmaking technology and artillery technology, and they were also the advanced technologies that Carlo had been yearning to introduce to Spain.
Although these industrial products were not advanced compared to later industrial and military products, for Carlo, these were things Spain dreamed of.
A room of only three hundred square meters surprisingly kept Carlo browsing for several hours, until both sides had reached certain compromises on the cooperation content, and Carlo ended the visit.
After Spanish officials and the management of steel mills and armories argued forcefully, both sides finally reached a consensus on the cooperation.
Carlo’s Royal Steel Mill invested 12 million pesetas to purchase a complete set of steelmaking equipment from Krupp Company. This complete set of steelmaking equipment was expected to achieve an annual output of 10,000 tons of crude steel and 40,000 tons of pig iron.
At the same time, Krupp Company would dispatch at least 30 technical experts in steelmaking to Spain, who would stay in Spain for at least two years to help Spain’s steel mills master Krupp Company’s steelmaking technology.
Of course, all expenses of these experts in Spain would be borne by the Spanish side, and Krupp Company would not pay a single penny for it.
Regarding artillery technology, Krupp Company would not sell it directly. But Krupp Company could sell 500 cannons to Spain in the form of normal trade, and allow Spain’s armories to disassemble these cannons to learn Krupp cannon technology.
To make Krupp Company agree to transfer steelmaking technology, Spain also needed to pay an additional 20 million pesetas in learning fees.
All in all, the expenditures added up to Spain needing to spend 32 million pesetas to purchase Krupp Company’s steelmaking technology, and the cannons would still need to be researched and imitated by themselves.
Although it did not reach his expected outcome, such a result was acceptable to Carlo.
With Krupp Company’s steelmaking technology, Spain’s steel output could also achieve further growth. For a very long time in the future, steel output in European countries would usher in explosive growth, and Europe and even the whole world would truly enter the industrial era.
Carlo did not expect Spain to keep up with the development speed of the three industrial powers Britain, Germany, and America, but he also hoped that Spain’s industrial development could rank just behind France, or even surpass France in some cases.
France’s comprehensive strength was not bad, but compared to Britain and Germany, France did not pay as much attention to its own industrial development.
This had to come back to the impact of the Franco-Prussian War on France. Although France had a large population, most of France’s population were farmers.
The smallholder economy hindered France’s industrial development, making France’s industry overall biased towards small and medium-sized enterprises.
After the defeat in the Franco-Prussian War, France faced huge indemnities. These indemnities also restricted France’s industrial development and made it difficult for these small and medium-sized enterprises in France to adopt new industrial technologies and equipment.
In such a situation, France’s industrial development speed naturally lagged far behind countries like Britain, Germany, and America. This led to French private capital not willing to invest funds in domestic industrial development, but rather preferring to invest funds in other countries to earn more profits through their faster development speeds.
This created the glorious usury empire at the end of the 19th century and the beginning of the 20th century, but at the same time buried France’s domestic development.
Data from history also showed that France’s development had fallen into stagnation since the Franco-Prussian War.
In 1875, France’s steel output reached as high as 256,000 tons. In comparison, Britain’s steel output at this time was only 719,000 tons, and Germany and America’s steel outputs were also less than 400,000 tons each.
At this time, France’s industry had not fallen too far behind Germany and America, and it was still a powerful industrial nation.
But in the following years, France’s industrial scale did not grow much.
By 1880, Britain and America’s steel outputs had successively broken through one million tons, and Germany’s steel output had an exaggerated 624,000 tons.
While France’s steel output was only 389,000 tons, this data was about one-third of Britain and America, and two-thirds of Germany.
This was not yet France’s most backward time. In 1885, Britain’s steel output had reached 917 million tons, and America’s steel output also reached 739 million tons.
Germany’s development was not weak at all, with steel output almost doubled compared to five years ago, reaching 202 million tons.
While France’s steel output was only 554,000 tons; it was two-thirds of Germany’s a few years ago, but by 1885 it was not even half of Germany’s.
It was precisely the poor performance of the French during this period that allowed Carlo to see the hope of Spain surpassing France in industry.
Last year, Spain’s steel output was around 200,000 tons, and the French’s steel output reached 300,000 tons. If the third phase construction of the Barcelona Industrial Base could be completed, Spain might really have hope of surpassing France in steel output in the next few years.
Although steel output did not represent the overall industrial scale, it was closely related to the overall industrial scale. After all, only if the domestic industrial scale and demand were relatively large would steel mills have enough orders to produce steel.
After signing the cooperation agreement with Krupp Company, Carlo’s purpose in the Ruhr Area could be considered more than half completed.
The steelmaking technologies owned by other steel mills in the Ruhr Area were either similar to Krupp Company or worse than Krupp Company, so there was no need for Carlo to make another trip.
Cooperating with Krupp Company had already fulfilled Carlo’s needs in steelmaking technology and artillery technology; this visit to Germany was an unexpected joy for Carlo.
After the contract was signed, Carlo did not stay too long in Germany.
After all, the upcoming visit to France was the main event, and the aid obtained from the French was what Carlo truly cared about.
France gradually turning into a usury empire did affect France’s own development, but for Spain, it was actually a good thing.
Germany’s private capital was not necessarily weaker than France’s, but Germany’s capital needed to be invested domestically to help Germany’s industry develop faster.
This also led to Germany being industrially powerful but lacking sufficient funds to help Spain develop.
France was different. France had a selfless attitude, with ample funds to help Spain develop, which was also the reason why Carlo was more willing to cooperate with France.
Regardless of how the relationship between Spain and France would develop in the future, at this time France was the country in Europe most likely to provide Spain with the most loans; this reason alone was enough.
For the trip to France, Carlo did not choose train travel like going to Germany via Austria, but went north from the Ruhr Area and then took a ship from the port to a French port.
The reason, naturally, was the competitive relationship between Germany and France. If he took the train openly from Germany to visit France, it would be embarrassing for the Germans, and France would also suspect Carlo’s intentions.
Because France had become a republic, there would naturally be no crown prince or king to receive him.
After Carlo arrived in Paris, he was arranged by the French Government to stay in a manor in Paris.
Among the three countries visited this time, besides the Austro-Hungarian Empire, France might be the country with the best attitude towards Carlo.
The main reason among them was that France needed Spain to break through Germany’s blockade.
In conversations with the French Government, Carlo mentioned wanting to obtain more interest-free and low-interest loans from France, and requested more industrial and other aid from France.
The French naturally would not refuse this, but they also put forward their own conditions; after all, the French were not fools and would not give for nothing.
Among all the conditions proposed by the French, the first was to prohibit Spain from reaching any agreements with Germany regarding diplomacy and military affairs.
The purpose of this was to prevent Spain from joining the alliance of isolating France organized by Germany; Carlo also knew the French’s purpose and naturally nodded in agreement.
The French’s second request was to establish a closer trade relationship with Spain.
Carlo naturally had no objection to this; after all, the French’s huge grain yield was a good choice for Spain to avoid grain crisis, and trade with France would not be a loss for Spain.
Of course, protection of Spain’s industry was also very necessary. Spain was less affected by the economic crisis, and the prices of domestic industrial products were still relatively high compared to European industrial products.
Due to the economic crisis, industrial products in European countries, especially steel products and machining products, had prices fallen to the bottom; if these products flooded into the Spanish market, it would definitely impact Spain’s factories.
Under the premise that the quality of these industrial manufactured goods was similar, the public would definitely choose cheaper products.
This also meant that Spain’s native factories would either lower selling prices or face the problem of continuously shrinking market share.
Carlo was unwilling to let Spain’s industry suffer huge impacts due to the influx of foreign industrial products, so in agreeing to the French proposal to deepen trade cooperation, he specifically mentioned that Spain would temporarily not import French industrial manufactured goods.
The French Government did not intend to force Spain to import industrial manufactured goods. After all, the purpose of their proposal to deepen trade cooperation was to influence the Spanish Government at the economic level.
As long as Spain further deepened cooperation, plus the reason of massive influx of French funds into Spain, French capital was destined to gain certain right to speak.
This could also ensure that Spain was closer to France; this was the French’s true purpose and also the method carefully considered by the French Government to ensure Spain would not lean towards Germany.
5200-word two-in-one chapter, seeking support!
