Holy Roman Empire
Chapter 263: The Integrity of the Great Powers

Cairo

After mediation by the British and French, negotiations finally made some progress, with Jonas agreeing to make limited concessions. But these concessions were only what he saw as such — the Egyptians would not feel them.

“Mr. Mahmoud, we can choose not to hold your country responsible, but you must pay adequate compensation, otherwise I cannot explain it to my people.

You must pay 1 million guilders for lost cargo, 2 million guilders for pensions, and another 2 million guilders for emotional distress. That is the bottom line of the New Holy Roman Empire,” Jonas demanded extortionately.

5 million guilders was equivalent to 2.5 million pounds or about 18.3 tons of gold. This amount already exceeded the annual income of the Egyptian government, making it a difficult demand to accept.

Mahmoud angrily replied, “Impossible! This is extortion! What do you mean, a million guilders worth of lost cargo? This caravan was only carrying some jars and pots. They were hardly worth anything. The total value of all the goods wouldn’t even exceed 5,000 guilders.

Your side only had three deaths, and you demand 2 million guilders in compensation? This is simply a joke, it should only be 500 guilders at most.

The losses suffered by the Arikus Tribe are ten times greater, should your country not pay their compensation as well? Our demands are not excessive, just offsetting the losses is enough.

As for the emotional distress fees, it’s even more ridiculous. Clearly, we are the ones who have suffered losses. Even if there were claims, they should be made by the Egyptian government against your country!”

Jonas explained seriously, “Mr. Mahmoud, you seem to be uninformed. The jars and pots in the caravan are all valuable antique artifacts, each one priceless. The 1 million guilders is a wholesale price; if sold individually, it could easily reach 3 to 5 million guilders.

The three unfortunate victims were the most outstanding talents in the empire. Had they not met with an accident, they could have become great nobles in the future. Therefore, their families are demanding compensation from your government based on the potential nobility status of the deceased.

Considering the emotions of the victims’ families, we believe that such a reasonable request should be supported.

The unlawful actions of officials of your government have deeply wounded the hearts of over 50 million citizens of the New Holy Roman Empire. Is a mere 2 million guilders for emotional distress too much?”

Jonas’ explanation enlightened the British and French representatives. It seems that they were prepared to learn from this exemplary experience.

Why fear sophistry? In this era, when had the powers ever spoken reason in their overseas actions?

Mahmoud was so angry that he was speechless for a while. How could there be any discussion with such nonsense?

The enemy could lie shamelessly, but they could only speak reason. They had to have enough reasons to get British and French support to keep the Austrians in check.

The French representative De Lesseps persuaded: “Mr. Jonas, your demands are too high, far beyond the capacity of the Egyptian government.”

It’s okay to start with a high offer because negotiations require some haggling. After all, if you don’t haggle, how can you lower the price? But if you insist on it as the bottom line from the start, how can there be any negotiation?

Jonas chuckled and said, “That’s okay, if you don’t have the money, you can use tariffs, mineral rights, rights to roads or land to pay off the debt.

We’re not here for the money; we just want a fair outcome. The Egyptian government can negotiate how the compensation will be paid.”

Sensing his opponent’s weaknesses, Jonas was a businessman first and a diplomat second. The French did the best business in the Egyptian region and were involved in most industries. The British were second, gaining the right to build roads and expanding their influence.

Austrian businessmen are in an awkward position; they cannot enter many industries, and Austrian goods exported to Egypt are heavily taxed.

Whether others could tolerate it or not, Jonas, who felt the pain directly, could not. He also wanted a share of the privileges enjoyed by British and French businessmen.

Of course, this must be done under the premise of fulfilling the orders of the Austrian government.

Mahmoud roared, “This is impossible! The Egyptian government will never accept your extortion. If you don’t want to leave, feel free to stay and eat sand!”

Are they kidding? For a small oasis with no real value, and to pay such a high price for it, do they really think that the Egyptian government is that easy to bully?

Hearing Mahmoud’s words, Jonas was ecstatic inwardly, but still said expressionlessly: “The Sinai Peninsula is not worth 5 million guilders. Your country must lower tariffs, abolish restrictions on Austrian goods, and treat Austrian businessmen in Egypt equally!”

Mahmoud, still unaware that he had been duped, thought that Jonas had made concessions. After pondering for a moment, he replied: “Mr. Jonas, your demands are too much. Setting tariffs freely is our sovereignty, we cannot give it up under any circumstances.”

Mahmoud had no choice but to worry, for the British and the French also had their eyes on Egyptian tariffs. They would not dare to make any concessions.

Jonas frowned and said, “It’s late already, let’s all calm down for now. As for the tariffs, we can discuss that tomorrow. What about the other conditions? Are they approved?”

This was the first time in the long negotiations that Jonas had actively asked for a recess. Although confused, Mahmoud did not object.

As he left the conference room, Jonas immediately instructed the recorder sent by the Austrian government: “Will, organize the content of today’s meeting and send it back. The Egyptian government has agreed to cede the Sinai Peninsula.”

The man named Will frowned and said: “Mr. Jonas, the Egyptian government did not agree to cede the Sinai Peninsula. Isn’t what you’re doing deceiving the country?”

Jonas scoffed: “How can this be considered deception? Send back the entire contents of the meeting. Based on the interpretation that is most favorable to us, doesn’t that fool Mahmoud agree to cede the Sinai Peninsula to us?

Don’t be silly, Will, international politics is that sinister. All we have to do is affirm what is favorable to us and ignore what is not.

In negotiating with these indigenous countries, ambiguous agreements or memorandums are the best way to obtain benefits.

Don’t be fooled just because the French seem to be supporting the Egyptian government. When we proposed reducing tariffs, that fellow De Lesseps was also tempted.

No one is a philanthropist in the face of interests. Without sufficient benefits, they will not stand up for the Egyptian government.

Now let our people in the Sinai Peninsula declare our sovereignty. In the future, the Egyptian government will either choose war, or they’ll have to continue struggling at the negotiating table.

These meeting minutes are just an excuse to make our actions look more presentable. In essence, this is an invasion!”

Will nodded thoughtfully. Without creating a fait accompli, no matter what the Egyptian government said, they would not cede territory! The Sinai Peninsula had little economic value, but that was no reason to give it up, right?

Although the Egyptian government was influenced by Western culture at this time, its enthusiasm for land was not as great as it would be in later generations. The Egyptian government also feared that making concessions would set off a chain reaction that would lead to being carved up by European countries.

……

On June 26th, 1855, Austrian colonizers raised the flag of the New Holy Roman Empire over the Sinai Peninsula, declaring sovereignty.

This was met with strong protests from the Egyptian government. Jonas used the minutes of the meeting as a pretext for diplomatic extortion. Eventually, with British and French mediation, the Austrian government agreed to pay 50,000 guilders as redemption money for the Sinai Peninsula.

Under heavy pressure from England and France, the Austrian government made concessions and promised not to seek further expansion in the Egyptian region and to immediately cease colonial activities in the area.

On July 21, 1855, Jonas signed the Sinai Peninsula Land Transaction Treaty on behalf of the New Holy Roman Empire and the Egyptian government. The next day, Austria, Great Britain, and France signed the Convention of Cairo, formally ending Austrian colonial activities in the Egyptian region.

The acquisition of the Sinai Peninsula gave them a foothold at the Suez Canal. The Austrian government was pleased.

They succeeded in excluding Austria from the Egyptian region only by giving up the worthless Sinai Peninsula. Great Britain and France were also satisfied.

The only tragedy was for the Egyptian government, which lost a piece of territory in exchange for a nominal 50,000 guilders as a land redemption fee. This amount was actually returned to them as compensation for the Arish incident and given to the colonial expedition team.

This sum also served as a bounty from the Austrian government to the colonial expedition team, compensating them for the risks they took during their six-month adventure in the desert. As leaders of the colonial expedition team, Leo Haval and Andrea were given the honorary title of knights.

Overall, the matter was concluded satisfactorily.