Chapter 332: Chapter 19, Autonomous Province
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The Kingdom of Prussia’s shipbuilding plan took Franz by surprise. He could never have imagined that Prussia, which had been entirely focused on its army, would suddenly turn to developing a navy.

However, after reviewing the recent developments within the Kingdom of Prussia, Franz understood their actions.

Domestic industry needed cheap raw materials and markets. Stability on the European Continent meant that the Kingdom of Prussia saw no more prospects for significant growth.

Given the current situation, if they continued to delay, even if the Germany Region were united, they would be the ones being united.

No one wanted to wait for death. By capitalizing on the peacetime to build up a navy, they might just find a way to survive against all odds.

To make the Junker aristocracy accept this harsh reality, Wilhelm I personally acted as a persuasive speaker and promised them benefits.

Whether or not the government could profit from overseas colonial expansion remained uncertain, but domestic capitalists were sure to profit.

If the nobility were willing to take the lead in colonization, they would most certainly get a share.

This is also the reason why many Colonial Empires would appear to be financially unprofitable. Those with vested interests took too much, were reluctant to pay taxes to the government, and left the administrative costs to the government.

This situation was even more pronounced in the established empires, where the government was unable to suppress these interest groups and collect taxes. Along with the corruption of bureaucratic groups that devoured wealth, deficits emerged.

Short-term deficits were acceptable, but over time, if they exceeded the government’s financial tolerance, domestic interest groups would refuse to continue footing the bill and would rather let the colonies become independent.

The most typical example was the self-governing dominions fabricated by the British. Who would have thought that the Colonial Governments of places like South Africa, Australia, and India would actually be running at a loss?

The Americans initially suffered the same problem. The Philippines and Cuba, profitable under the Spaniards by tens of millions a year, constantly hemorrhaged money once in their hands.

After losing over a billion, they couldn’t bear it anymore and simply let go. It was the joint effect of capitalists and the bureaucratic group.

Following this lesson, the United States Government clearly recognized its shortcomings, barely able to control domestic capitalists, let alone Overseas Colonies.

This was why Franz had defined the African Colony as the Second Home of Germany from the start.

Since it was meant to be a second home, it couldn’t just be a place for plain colonial rule; once the number of immigrants reached a certain level, it would become localized.

The timing was also quite favorable as telegraph technology had made breakthroughs, with the submarine cables towards the African Continent nearly all laid out.

Convenient communication was a crucial factor for localized management. This was effective only for newly established colonies, where regional interest groups hadn’t had time to form and grow, and where the bureaucratic groups had not yet become corrupt.

For older colonies with entrenched interest groups, you’d have to rely on military force or a great purge.

To achieve this, you needed a powerful government capable of suppressing rebellions.

…

The head of intelligence, Tyren, handed over a document to Franz and whispered, “Your Majesty, the French are brutally extorting in the Balkan Peninsula and have purged many who oppose them. This is the detailed information for your review.”

After skimming the document, Franz looked bewildered. He wondered which genius had given Napoleon III such a brilliant idea to develop Overseas Colonies using Balkan migrants.

It really was a smart move. The peoples of the Balkan Peninsula were fierce—left in their homeland, they would not be easily governed. But once in the colonies, unfamiliar and isolated, they had no choice but to depend on the French.

After all, the French had plenty of colonies, and scattering these migrants across them, they couldn’t become the majority in any of them.

Franz had first-hand experience of this—nothing was abundant on the Balkan Peninsula except for the number of ethnic groups. This also meant that each ethnic group wasn’t large in numbers.

A population of a million was considered a large ethnicity, and currently, only the Bulgarians and Romanians were at that level. The Greek people were also close to a million.

Aside from the biggest factor of war, the Vienna Government’s immigration policies had also directly allowed the Bulgarians to become the top ethnic group on the Balkan Peninsula.

The French-Balkan Peninsula was even more fragmented, with over twenty ethnic groups totaling less than four million people, fraught with internal conflicts, one could see that these people had no chance of banding together.

Franz hesitated over whether he should stir things up a bit and add to the French’s chaos.

After all, the French immigration tactics were somewhat trashy; relying on poll taxes to increase migration could easily cause backlash. A slight nudge behind the scenes, and an armed uprising could erupt.

“Keep an eye on the French actions, and if there’s a chance, provoke the conflict between Montenegro Duchy and them.”

Franz wasn’t John Bull—he didn’t shy away from inflicting harm for no personal gain. Migrations from the Balkans by the French also benefited Austria, sparing it from the source of turmoil that could erupt again at any moment and spill over into Austria.

Yet, the instincts of a great power remained—he wouldn’t hinder French immigration, but that didn’t mean he couldn’t stick a knife in their back.

Montenegro Duchy wasn’t exactly peaceful; its ambitions were merely contained for now because its two neighboring powers were too terrifying.

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For the stability of the Austro-Balkans, Franz decided without hesitation to redirect the trouble eastward.

This was only a minor issue and would not affect the plans of the French. Even if a conflict occurred, it was believed that Napoleon III would be able to handle it.

Perhaps there was no need for incitement, as there were inherent contradictions. The arrival of the French thwarted Montenegro Duchy’s opportunity to annex Albania, and the relationship between the two had always been fraught.

…

On Kalimantan Island, an event was occurring that shocked the Southeast Asia region. On September 12, 1861, the flag bearing the double-headed eagle was hoisted over the Lanfang Republic.

Anyone with a basic understanding of international affairs knew what this flag signified.

The Lanfang Republic was demoted to become the Lan Fang Autonomous Province under the New Holy Roman Empire, and the term ‘Republic’ was cast into the long river of history.

No, the name Lanfang Republic was given by Europeans, while in the Chinese community, it had always been referred to as the Lanfang Company.

Changing from a privately owned company to an autonomous province was essentially being annexed. Liu Asheng was appointed the first Governor-General.

While a grand celebratory banquet was being held outside, Governor-General Liu was notably absent for the first time. He was still poring over the sub-state legislation of the New Holy Roman Empire, truly unsure in his heart despite having joined their ranks.

Eastern and Western cultures are different. Things that are very normal for Europeans can be quite shocking for those from the East.

To many Easterners, were these sub-states not akin to feudal princes? Even the government rights of a sub-state were greater than those of a prince, approaching that of a feudal lord under the Zhou dynasty.

A young man walked in and said with a smile, “Father, you are studying these laws again.”

Governor Liu nodded and said, “Chun, the more I read these laws, the more alarmed I become. Does the Emperor not intend to reduce the power of the nobility?”

The young man said confidently, “Father, rest assured, Europe places great value on legality. When I studied in the United Kingdom, I learned about the history of the Holy Roman Empire. This system has been in place for hundreds of years.

Even during the unification war that erupted a few years ago, when the King Bavarian stood on the opposite side of the Emperor, he was only transferred the territory of Lombardy.

If the Emperor truly wished to reduce the power of the nobility, there would be no need for such actions. The strength of Austria is much greater than that of these sub-states combined, yet His Majesty Franz still strictly adheres to the laws.

We have even less to worry about. If this is the case in the homeland, why would the Emperor violate his own laws for a single overseas autonomous territory?”

People are driven by self-interest, and without sufficient benefits, the higher-ups of Lanfang Company would not have joined the New Holy Roman Empire.

Beyond receiving protection, the most important aspect was that their interests were secured. Aside from sharing military expenses and paying an annuity to the royal family, their substantial interests were not compromised.

On the contrary, they could now raise the flag of Shinra in international dealings to ward off other Colonial Empires’ coveting eyes.

At least the Dutch, who had been pressuring them, had now halted their advance. The Vienna Government’s representative also made a promise that the privileges of other nations within Lanfang would be handled by the Imperial Foreign Ministry.

Governor Liu spoke, “It is best if that’s the case; otherwise, we would be paying protection fees for nothing.”

Perceptions do not change easily. In the mind of the older generation, this was akin to paying for safety by leveraging Austria’s strength to protect their own security.

In any case, they managed all their affairs themselves and still had their own army, with their autonomy fully preserved.

Leaving diplomatic matters to others was ideal as they were reluctant to deal with foreigners, having suffered losses almost every time they had contact with them.

The younger generation, educated in the Western style, knew how to use the rules to protect their interests. They were the strongest supporters of joining the New Holy Roman Empire.

Initially, they had wanted to join the Manchu Qing Dynasty, even willing to offer allegiance, but unfortunately, the Qing Government feared the trouble and dared not accept them.

In that era, Chinese people in Southeast Asia all had a sense of crisis, fearing that they could inadvertently bring about their own downfall.

Without strength, wealth was just a magnet for disaster.

As some of the earliest to recognize the plight of the world, they were acutely aware that the Lanfang Company was on the brink of collapse. Without a powerful sponsor, they simply could not survive on their own strength.

That was why after signing the agreement with the Vienna Government, a lavish celebration ensued outside.

It wasn’t that they were particularly fond of joining the New Shinra Empire; fundamentally, it was all about using its name for protection. The bigger the show, the greater the benefits it would bring.

This time, the Lanfang Government sent invitations to representatives from various nations in Southeast Asia to signal that the Lanfang Republic was now the Lan Fang Autonomous Province of the New Roman Empire, and anyone looking for advantages should address their issues with the Vienna Government.

Governor Liu’s absence at the banquet also had a political purpose—to show the representatives of the other nations that as an official of the New Roman Empire, he had the authority to say no.