Building an empire which the sun never set-Chapter 56: The Economic Grip on Nefara

The following morning, Arthur rose early, fully aware of the significance of today's government meeting. The agenda was set: discussing the recent agreement with Nefara. After completing his morning exercise, he swiftly ate breakfast before heading toward the council chamber.

Upon entering the room, the gathered ministers and Mathew stood to formally greet him. Moments later, King Cedric arrived, and the meeting commenced. The primary subject was the evolving situation in Nefara. As the discussion began, the King turned to Mathew for his observations on the region.

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"Your Majesty, esteemed ministers," Mathew began, "based on my assessment, Ali Pasha holds firm control over Nefara. The central government of the Usman Empire has little remaining influence there. Ali Pasha has secured the loyalty of powerful local tribes, effectively forming his own domain. He has systematically removed Usmani officials from key military and political positions, replacing them with his own loyalists. Furthermore, he exercises significant economic control. Nearly all state-owned agricultural land, apart from small plots held by independent farmers, is under his administration. He has also seized lands from dissenters, redistributing them to his allies. Commerce is likewise dominated by tribes aligned with him, with only a few large factions remaining outside his influence."

King Cedric, though aware of Ali Pasha's dominance, had not anticipated the full extent of his autonomy. He now understood more clearly why the Usman central government had failed to reassert its authority over Nefara.

Mathew continued, shifting to economic matters. "Nefara is a crucial trade hub, possessing a major western port city and serving as a gateway for overland trade with the East. A variety of exotic goods that arrived from the East flow through its markets. Additionally, securing financial support for the sale of agricultural tools to Nefara and the construction of irrigation canals will significantly boost cotton production in the region. This could provide an ample supply of raw cotton for Pendrallis's textile industry.""

At this, King Cedric's expression grew serious. The realization dawned upon him that their nation's dependence on foreign raw materials, particularly cotton, could become a significant vulnerability. He turned to the Foreign Minister.

"What is the current situation between the Usman Empire and the Syvatoslav Kingdom?"

The Foreign Minister responded promptly. "Your Majesty, tensions continue to escalate. Our intelligence reports indicate that both sides are preparing for war. They are expected to be fully mobilized by the coming spring."

At this point, Arthur, who had been silent throughout the discussion, spoke up. "Syvatoslav's primary objective is to gain access to the White Sea, as their current ports freeze for much of the year. Since we control the White Sea, it would be in our best interest to support the Usman Empire in the upcoming conflict. Unlike Syvatoslav, which is centralized and expansionist, the Usman Empire is weakening and struggling to maintain control even over its own territories. It would be preferable for us to have a weak Usman Empire as a neighbor rather than an aggressive Syvatoslav. Therefore, we should provide financial assistance to the Usman Empire, enabling them to better resist Syvatoslav's advances."

Henry, the Minister of Finance, interjected. "The Usman Empire's financial state is in complete disarray. They will not be able to repay any debts we extend to them."

Arthur nodded. "I am aware. That is precisely the point. When they fail to repay their debts after the war, we will use their financial crisis to gain leverage. We will negotiate an agreement granting us control over their customs duties—particularly reducing tariffs on our textile exports. Furthermore, we will establish a financial oversight commission to co-manage their revenue streams. In addition, we will ensure that Ali Pasha is replaced with a governor loyal to us in Nefara. Once in control, we will restructure Nefara's economy to prioritize raw material production for our industries.

"For instance, we will implement policies compelling local farmers to shift from food crops to cotton cultivation, as it has higher commercial value. Any food shortages that arise will be addressed by importing grain from regions where wheat is produced more cheaply. This will ensure that Nefara's economy becomes entirely dependent on us, solidifying our economic control over the region. We will also invest in railroads and infrastructure to facilitate the transport of raw materials to coastal trade hubs. Over time, not only will Nefara's economy become entirely dependent on us, but we will also set a precedent for reorganizing the economies of other territories we bring under our influence.

Arthur's proposal left the room in silence. The ministers weighed the implications of his plan. If they intervened in the war and helped the Usman Empire secure victory, they would successfully keep Syvatoslav away from the White Sea. At the same time, by indebting the Usman Empire, they would gain privileged access to its massive internal markets. Moreover, with the empire weakened, they could assume control over Nefara without facing serious opposition.

After a moment, King Cedric spoke. "Arthur's proposal is sound. However, we will not act immediately. We will monitor the war's progress, and if the Usman Empire begins to falter, we will intervene at the opportune moment." He then turned back to the Foreign Minister. "Instruct our intelligence services to keep a close watch on both sides. I want regular updates on the war's development."

Finally, the King addressed Daniel, the Minister of Defense. "What is the status of our military modernization efforts?"

Daniel replied, "Your Majesty, we expect to complete the modernization of our land forces by next spring. Our naval shipbuilding program is also progressing steadily. Each completed vessel is replaced in the shipyards by a new one. However, as you know, warship construction is a long process. Still, by next spring, more than half of our fleet will consist of steam-powered vessels."

King Cedric nodded. "Assign the newly commissioned ships to the Maraz Strait Fleet to reinforce our presence in the White Sea."

With that, the discussion turned to domestic matters, including gas lighting expansion, infrastructure development, and internal policies. The meeting continued for another hour before concluding, setting the stage for the empire's next strategic moves.