Holy Roman Empire

After extensive research and discussions, Franz finally reached an unexpected conclusion: the British were starting to feel the strain.

This “strain” didn’t mean the British Empire was on the verge of collapse. In fact, the empire was at its peak, with no one yet capable of threatening its global dominance.

However, the core purpose of a colonial empire is to generate profit. Now, with frequent international conflicts, countries were constantly undermining each other and setting traps, which significantly increased the costs of maintaining colonies.

As investments rise, the returns have not kept pace and, at times, have even diminished due to unrest. In this context, it is understandable that the British government would seek to halt unnecessary conflicts and reduce colonial expenses.

In the original timeline, there was also a colonial conference (the Berlin Conference), initiated by the Belgians, where King Leopold II successfully capitalized on the rivalries among powers to acquire the Congo region.

Now that the Congo region has long fallen under Austrian control and most of Africa has been divided, Leopold II would naturally refrain from engaging in futile efforts. Without the Berlin Conference, the major colonial empires lack a significant opportunity to communicate deeply and mediate their conflicts.

Although Britain, France, and Austria have formed an alliance, they’ve only reached agreement on core issues, and there hasn’t been time to discuss the details of every single colony.

Just because the three powers hold an advantage in the division of colonies doesn’t mean they can act with impunity. In reality, none of the colonial empires are easy to deal with.

While their military strength may not match that of the three nations, they can still discreetly undermine them by promoting nationalism and supporting independence movements in the colonies.

The recent surge of uprisings in colonies serves as clear evidence of this trend. Statistics would reveal a year-on-year increase in the frequency of colonial revolts.

If this situation persists, no one should expect to profit easily, especially the British, who possess the most colonies and thus incur the highest costs of governance.

The Austrian government does not feel the impact significantly, which is due to Austria’s colonial policies and its unique geographical situation.

Although Austria has a considerable colonial land area, the indigenous population is relatively small. With so few people, how much chaos can they really create?

Rebellions that can be suppressed by the police are hardly worth mentioning. In contrast, the British face a tragic situation. Not only do they have the largest territories, but also the highest populations.

In recent years, nearly half of the colonial uprisings have occurred in British colonies, so it would be problematic if the British government were not concerned.

This situation is a result of the resentment the British have fostered everywhere. On the surface, other nations may not dare to confront them, but they feel little hesitation in secretly undermining them.

For instance, Austria invests millions annually to promote various ideologies and thoughts abroad, with a significant portion aimed specifically against the British.

The British government has attempted to retaliate, but the issue lies in their inability to find suitable allies. Otherwise, they wouldn’t be so determined to support the Ottoman Empire.

The British have benefited the most from colonial endeavors but have also offended the most people. Now, it’s not just Austria, almost all major European colonial empires are secretly plotting against them.

Such matters, as long as there is no solid evidence, leave the British government powerless except for covert retaliation.

Even if they wanted to find an excuse to apply diplomatic pressure on smaller nations, France and Austria would step in to mediate, leaving them with no outlet for their frustrations.

This is a downside of having a large population. The British colonies have a total population of around 400 to 500 million, while the French colonies only have about 40 to 50 million, and the Austrian colonies have fewer than 30 million—these figures are not even comparable.

In colonial ventures, the British receive the most substantial returns but also incur the highest governance costs.

The saying “population is wealth” is not always true. It requires a process of transformation. Only by effectively utilizing the population can wealth be created.

Undoubtedly, the British cannot fully leverage the vast population of their colonies. Otherwise, not just France and Austria, but even all European countries combined would not be their match.

In terms of labor utilization in colonial development, Austria has made the most efficient use of its workforce. This is not due to any exceptional ability of Franz or superior management by the Austrian government, but rather due to the quality of the population.

Although the Austrian colonies have a small population, European immigrants and their descendants make up more than half of the total population.

This figure cannot be matched by France or Britain as their larger populations do not allow for such a high number of immigrants. Without enough immigrants and with local indigenous productivity being very low, the wealth created is naturally limited.

The French should feel this most acutely. Purely from a financial perspective, French colonies have been losing money for many years.

Such situations are not surprising. The financial losses in colonies are not unique to France but have been experienced by nearly all colonial empires.

Typically, these losses occur during the initial stages of colonial development, and once a certain level of development is reached, many colonies become profitable. Colonies that continue to operate at a loss are the exception rather than the rule.

Austria serves as a prime example, having incurred annual losses of tens of millions of guilders at its peak. Even today, many areas still operate at a loss, and overall, they have only achieved a balance between income and expenditure.

Of course, this is purely based on the direct fiscal revenue of colonial governments. If one were to consider the contributions of colonies to the domestic economy, the situation would change significantly.

The British are widely disliked because they occupy the most fertile lands. Even with the most primitive forms of governance, they can still turn a profit and earn more than anyone else.

In contrast, the French have fared poorly. Compared to the same period in history, they have managed their “Desert Empire” even more thoroughly.

Given that it is a desert empire, one cannot expect the land to be particularly fertile. Until the natural resources underground were developed, French Africa was essentially a collection of wastelands.

If it weren’t for Napoleon III moving immigrants from the Balkans and Italy to North Africa to develop it to some extent, it would have been even more disastrous.

However, having many deserts does have its advantages. At least in terms of governance costs, the French spend relatively little.

In other regions, bandits could roam everywhere and hide in ravines, but in the desert, as long as they were far from the oases, they would just perish. Therefore, French rule in North Africa remains quite stable.

After clarifying his thoughts, Franz realized: negotiating to mediate international disputes and reduce conflicts has become an inevitable trend.

Driven by interests, almost all colonial empires have a desire to lower the costs of colonial governance. In this context, any obstruction would put one at odds with everyone else.

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Franz disliked futilely resisting the tide. Since this was a common goal, he might as well participate.

Austria, as a member of the colonial empires, would also benefit from reducing disputes, even if it wouldn’t profit as much as the British.

Franz stated, “Easing international conflicts and reducing colonial maintenance costs benefits everyone. There’s no need for us to be the villains here. Now, let’s think about what regions we can acquire this time.”

Can the costs of maintaining colonies really be reduced? Deep down, Franz did not believe it!

Perhaps there could be a short-term reduction, but in the long run, costs are bound to rise. Especially in densely populated areas where governance expenses will inevitably increase significantly.

Most matters can be managed, but ideologies and beliefs are uncontrollable. Once they are spread, they cannot be retracted.

The seeds have already been sown, and no one knows when they will take root, sprout, and eventually bear fruit.

Prime Minister Felix said, “Your Majesty, at this colonial division conference, we have essentially become spectators. There are too few territories that are suitable for us and that we can actually acquire.

The regions available for colonization now are limited to the Ottoman Empire, Persia, parts of the Far East, parts of the Indochinese Peninsula, and some areas in East Africa.

South America is barely included, but they have already gained independence. Considering the costs of governance, these areas are only suitable as economic colonies.

The Ottoman Empire is the most suitable for us. Other regions either have competitors that are too strong or are too far away for us to reach effectively. Even if we acquired them, it would not be worth the effort.

The British and French will not allow us to annex the Ottoman Empire, so it will be difficult for us to gain anything from this colonial feast.”

The term “economic colony” is a new concept proposed by European scholars in response to the rising costs of colonial governance.

In simple terms, when direct governance becomes too costly, it shifts to supporting proxy rule and extracting wealth through unequal trade agreements.

There are quite a few supporters of this idea. In everyone’s understanding, colonies exist primarily for profit. As long as money can be made, the method of governance is not important.

Prime Minister Felix suggested large colonial territories. Besides that, there are many smaller scraps that are overlooked simply because they are too small or lack significant economic value.

Among the regions up for division, the Far East is undoubtedly the wealthiest, but it is also the most complex, with great powers vying for influence.

Austria has no established foothold there and has already missed its chance to participate. Furthermore, the distance exceeds Austria’s capacity for investment.

Persia is viewed by the British as theirs for the taking, and being close to India, it is closely monitored by John Bull. Anyone who touched it would incur their wrath.

In the Indochinese Peninsula, the Kingdom of Prussia occupies a corner, while the British and French are fiercely competing. At this point, if Austria were to get involved, it would surely be pushed out.

The East African region is already a “chicken rib” for Austria—something that is dispensable. Its economic value is limited and will likely incur losses for a long time. Strategic locations have already been seized by the British, making acquisition nearly impossible.

While the South American countries were suitable as economic colonies, due to the distance factor, the influence of Britain and France was greater. Austria’s influence was limited to the colonies near Central America such as Colombia.

Franz nodded helplessly. Austria was no longer a major player in this colonial feast. Rushing in would only lead to being jointly excluded.

“I was too greedy. Austria has already gained enough benefits and has become quite unpopular. Now it’s time to digest what we have.

In this colonial division feast, preserving our existing interests is sufficient. Any gains would be a pleasant surprise. If not, we shouldn’t be upset. It’s not worth getting worked up over scraps.”

With this timely adjustment in mindset, Franz felt much more relaxed. Greed is humanity’s original sin. If one cannot control their desires, they will inevitably walk down an irreversible path.

There were quite a few countries participating in this colonial distribution feast. While it may seem that there are substantial benefits left over, in reality, when distributed to any specific country, there isn’t much to go around.