The Rise Of Australasia

Chapter 663 - 504: Russian Capital Floods In



The allocation of Australasia’s military expenditure is determined by the Ministry of Defence in cabinet meetings and then distributed among the three armed services.

Without the financial decision-making power, it is difficult for the General Staff to seek opportunities using military power.

This structure is more stable, ensuring that the military power of Australasia is balanced between the two institutions, posing no threat to Arthur’s monarchical authority. n/ô/vel/b//in dot c//om

The first request from Arthur for the reorganized Ministry of Defense is to increase naval investment and create smaller fleets to protect the maritime security of Australasia.

The naval fleets and maritime patrol teams do not conflict; after all, most naval vessels range from hundreds to thousands of tons, while most patrol boats weigh only dozens to hundreds of tons.

The army’s budget is fixed after expansion, there is little expenditure without war, and the training costs become the major expense.

The air force and the army’s needs are similar; the upcoming changes in aircraft technology and large-scale aircraft procurement seem uneconomical.

Under these conditions, a large-scale construction of the navy is the most cost-effective. Australasia’s current lack of naval restrictions is the best opportunity to build a navy.

As the four-year development plan sets the tone in the cabinet meetings, Australasia’s development and construction have officially begun.

The announcement of Australasia’s first four-year plan immediately attracted the attention of domestic and international media and the public.

This is normal since there are not many countries in the world that are so aggressively developing.

Britain and France are nursing their wounds, the United States’ reputation is tarnished, and they dare not be bold. Russians are busy with civil war, and Italians are caught in the intoxicating victory of the war.

Germany, which is eager to develop, will not voice its opinions due to pressure from the Allies.

Consequently, Australasia’s development becomes uniquely significant. This large-scale four-year development plan, the international bidding for various projects, and the invitation for foreign investment for the Leonora Industrial Base have attracted attention from many international financial groups and capitalists.

Among the international financial groups, Russian capital deserves attention.

Indeed, it is Russia, which is half-destroyed by war and industrial decline.

The Russian government may be impoverished, but it has nothing to do with Russian capital. This is the current state of Russian capital.

Centuries of accumulation under the Tsars in Russia have enabled numerous grand nobility and capitalists to have substantial capital.

Russia’s civil war has resulted in the loss of a large number of industries for these capitalists, forcing them to look for opportunities abroad as Russia is not peaceful enough for industrial development.

Among many countries, the high-profile development of Australasia attracts the attention of Russian capital.

What attracts them is the presence of millions of Russians in Australasia. As the bourgeois who exploited these people for centuries, Russian capitalists know the advantages of these Russians: hardworking, willing to bear greater exploitation.

Of course, besides this, Australasia’s excellent environment also attracts these capitalists’ attention.

Compared to the tarnished reputation of the United States, Australasia seems to have greater development potential. Furthermore, the last war proved that a large-scale conflict did not affect Australasia’s native land. Isn’t such a country capable of ensuring peace ideal for Russian capital?

After Australasia opened for public tenders, a large amount of Russian capital poured in; they crave a stable investment environment in Australasia rather than the horror of Russia, where any war would destroy their hard-earned accomplishments.

Capitalists are changeable. On one hand, they collude with the government and officials in their homes to oppress the poor and commoners, exercising exploitation to the utmost degree.

On the other hand, when they go abroad, they crave a place with integrity and clean governance.

This can be explained easily: only capitalists who collude with the government and officials are the most powerful, while a single capitalist pales in comparison to a country’s government machine.

Under these circumstances, these foreign capitalists prefer regions with fair political environment, which can protect their interests justly and not collude with their local counterparts to devour them.

Australasia meets their requirements: firstly, a considerable number of Russians live in Australasia, making them feel like family.

Secondly, the political environment in Australasia achieves fairness since it is an immigrant country without any exclusion of foreign ethnicities and capital.

Moreover, the marital ties between the Australasian Royal Family and the Russian Monarchy have attracted many former Tsarist nobles.

After all, if they are in Australasia, their noble status could be protected, and the royal family recognizes the status of Russian nobility even though they have already fled and lost their power and status in Russia.

If they were to go to a republic like the United States, while their capital would still hold significant power, their noble identity would dissipate.

For these and other reasons, the influx of Russian capital into Australasia was rapid after the announcement of its four-year development plan.

These capitals generally choose to establish or acquire industries. The industries they enter range from heavy industry, chemical industry, light industry to food industry.

Among them, Russian capital chose not a few light industries and food industries.

This is actually easy to understand, since these Russian capitals still possess some power and connections within Russia Nation.

In Australasia, they can set up factories, produce a lot of light industrial products and food, and then sell them at high prices inside Russia Nation, would they not make a huge income?

Although this would generate a lot of tax revenue for the Australasian Government, these capitalists can also make profits, with little risk of loss.

Keep in mind, the impact of this civil war on the domestic environment in Russia Nation is enormous. This impact is not only on industry and economy, but also on agriculture and animal husbandry.

Russian food production has decreased by almost half compared to before the civil war, threatening the food demand of the Russian people.

Because under the request of the British Empire, all World Alliance members have signed a treaty prohibiting trade with Soviet Russia.

As a result, Soviet Russia was able to establish a comprehensive centralized distribution system of supplies to ensure that the vast majority of people have some food to eat.

Although they may not be completely full, they can avoid the situation of starvation as much as possible, which is a silver lining in the misfortune.

On the other hand, Tsarist Russia naturally does not fall in the trade restrictions proposed by Britain. Tsarist Russia has treaty on food trade with many European countries and Australasia. Just by exporting food alone, these Russian capitalists can make a large sum of money.

Arthur welcomed the influx of these Russian capitals because they could promote the rapid development of Australasian industry and various sectors.

Although these people might not be on the same side as the Australasian Government, their industries are established in Australasia and will be subject to the control of its government.

Especially under the influence of the Russian civil war, these Russian capitalists have no one to protect them.

If they behave well, Arthur would be willing to treat them as native enterprises.

Otherwise, if these Russian capitalists are disobedient, they would learn how powerful the royal financial group is, which could rapidly acquire and dissolve the businesses established by these Russian capitalists in a short period, and let their investments go down the drain.

It is believed that these capitalists are wise, as no one would want to miss out on money, and no one would want to give up their hard-earned investments to others.

Please note that these capitalists have invested in all tangible industries in Australasia.

Whether it’s heavy industry, light industry, chemical industry or food industry, it has a significant stimulus effect on Australasia’s economy.

It can be predicted that, with the participation of these Russian capitals, the economic growth this year should not be small in scale.

Moreover, this year is only the beginning. In the next few years, these Russian capitals will play a crucial role in the economic growth of Australia.

With the participation of these Russian capitals, the Prime Minister’s pledge in the Four-Year Plan of an annual 9% growth rate in the economy could not only be achieved but also exceeded.

To show the importance of these Russian capitals, Arthur also personally received a Russian aristocrat.

This is a count from Russia Nation, not part of the core decision-making of Tsarist Russia, but still has a considerable influence on capital.

Arthur’s reception greatly boosted the confidence of Russian capital, as everyone knows that in Australasia, Arthur’s opinion is still very crucial.

Although Arthur personally received some Russian capital, it does not mean that officials can recklessly contact these capitalists.

After all, Arthur sees these capitalists very clearly. No matter which country they are from, most of them are not good people.

That’s why Australasia has never had any provisions to favor capitalists, and some industries even have heavy tax burdens to limit the size and number of capitalists.

For Australians, becoming a nobleman is a better choice than becoming a capitalist.

After all, the nobility is the class strongly favored by the government, they not only enjoy some tax relief but also can be a role model for the whole country to learn from, as advocated by Arthur.

After all, compared to capitalists, these less powerful noblemen are more likely to unite closely around Arthur to strengthen Australasian monarchism and to ensure their positions.

All their privileges and status come from Arthur, which also means that they must remain loyal to him. As long as Arthur exists, their power and status will exist.

Such a situation would certainly not only occur during Arthur’s reign. Even future Australasian monarchs would still hold the destiny of these new nobles.

New nobles are the best weapon for every Australasian monarch. These new nobles can work in any direction for the monarch, including military, economic, and political matters.

The aristocratic schools founded by Arthur are designed to cultivate the offspring of these new nobles, ensuring that the nobles’ descendants are not useless and better serve Arthur and the future monarchs of Australasia.

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