The Rise Of Australasia-Chapter 1261 - 929 Loan Arrives

Chapter 1261: Chapter 929: Loan Arrives

Chapter 1261 -929: Loan Arrives

From the reaction of the British Government, it was very likely that they would choose to compromise with Australasia.

Just over one week before Winston Schmidt returned to London, the British Government contacted the Australasian ambassador in Britain to discuss the 1 billion Australian Dollar loan that Arthur had mentioned.

According to the current exchange rates, 1 billion Australian Dollars was approximately 534.7 million Pounds, almost one-third of the Island Nation’s total GNP.

Seeing the British move so swiftly ahead, Arthur also had to admire the economic scale of Britain and the endless wealth brought about by its vast colonies.

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Based on the economic scales of the British mainland and Australasia, there shouldn’t be much difference in income between the two.

However, in reality, the income of the British Government was more than twice that of the Australasian Government’s annual financial revenue. The 1 billion Australian Dollar loan was just under a year’s revenue for the British Government.

What caused such a huge gap in fiscal revenue between Britain and Australasia? Of course, it was Britain’s vast colonies, such as India, Canada, and South Africa, among others.

According to information from Australasia regarding India, India had produced over 40 million tons of grain last year, an extremely terrifying figure.

In comparison, the food production on the British mainland was only one-tenth of India’s, and Canada’s food production was about a quarter of India’s.

Such massive food production almost brought the British an endless stream of income. Merely with such developed food production, India could be considered Britain’s most important colony.

Not to mention, India also had a huge population and other abundant mineral resources, and more.

However, because India had a huge population, even though its grain production surpassed 40 million tons, it still could not meet the entire Commonwealth’s food consumption.

Australasia, being a major food exporter worldwide, also took some advantages in this aspect.

The population of Australasia was maintained at the same level as the British mainland population, but Australasia’s food production had already reached almost eight times that of Britain.

According to data compiled by the Ministry of Agriculture, in the entire year of 1936, Australasia’s cultivated land area had exceeded 49.25 million Acres, which is a vast land area of 199,000 square kilometers.

How exaggerated is a nearly 200,000 square kilometers of land? To put it in perspective, the four major parts that make up the British mainland – England, Scotland, Wales, and Ireland – have a combined land area of less than 300,000 square kilometers.

The largest two parts, Scotland and Ireland together have a land area of just over 200,000 square kilometers, roughly equivalent to Australasia’s land area.

Using land equivalent to nearly half of Britain for farming, this is also why Australasia’s grain production continues to increase. After all, having a vast land area really allows for considerable freedom, and nearly half of Britain’s land area is just a fraction of Australasia’s total territory.

The vast cultivated land area brought a grain production that is unimaginable for ordinary countries. In 1936, Australasia’s grain production reached an impressive 31.575 million tons, with a yearly total grain export of over 14.5 million tons.

Thanks to a domestic population of just over 40 million, nearly half of Australasia’s grain production was used for exports, making it one of the top three food export countries in the world.

Currently, the income of Australasian farmers is maintained above the per capita annual income level, making agricultural workers quite popular.

However, due to the overall population limit, the growth of cultivated land area is very slow. But such a growth rate also matches the population growth rate, and currently, Australasia essentially does not face a food shortage situation.

With high grain production, naturally, the price of grain also lowers. Coupled with extremely developed animal husbandry, people of all income levels in Australasia can afford meals, which Arthur believes is the most important achievement in his over thirty years of governance.

At least in current Australasia, there really isn’t a concept of starvation. As long as one is willing to work, they can obtain sufficient income from the Royal Relief Committee and various enterprises and factories to purchase a large amount of cheap grain.

Also, because of the large amount of grain exported each year, the price of grain can be maintained at a level, ensuring that the income farmers receive is not too low.

How exaggerated is Australasia’s grain production? According to current estimates by the Ministry of Agriculture on the national per capita grain consumption, the current 31.575 million tons of grain production can essentially ensure consumption for over 100 million people for more than a year.

Because Australasia’s population is under 50 million, the current grain production can assure that the whole nation of Australasia can eat for more than two years.

Together with strategic grain reserves, even if no grain is produced for two years, Australasia’s population of over 40 million will not face famine.

Ambassador John quickly reported to Arthur the loan scheme offered by British capital.

Out of the total 1 billion Australian Dollar loan, about 690 million Australian Dollars came from British civilians. This portion of the loan is a low-interest loan with a repayment period of 15 years.

The remaining approximately 310 million Australian Dollar loan came from the British Government and royal family, of which 160 million Australian Dollars are interest-free loans, and the remaining 150 million Australian Dollars are low-interest loans with a repayment period of 20 years.