Chapter 203: Investments in Spain
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18-December-1921
“Well, as we agreed, King Alfonso, I have already ordered the establishment of the investment fund needed to build those two joint ports in northern Spain. They must meet our construction standards to ensure that Baltic cargo ships can dock there and that their cargo can be unloaded by crane. A company will also be established to manufacture these containers, ensuring that Spain has its own domestic production of this means of transporting goods” I said, pointing to the plans I had given the Spanish so they could build the ports to the necessary specifications.
“For my part, I have already ordered the designated sites cleared for construction of the new ports. As agreed, the Baltic Duchy will sell us twenty cargo ships capable of carrying these containers, but I would like to know when they will be ready” King Alfonso asked as he lit one of his cigars after clipping its tip.
“Before the ports are finished, although much will naturally depend on how diligently construction proceeds. It is very important to us that the work be completed as soon as possible, since these will be the only ports outside the Baltic Duchy capable of accommodating ships of their size and equipped with the facilities needed to handle the containers. Spain would therefore become our most important trading partner, even ahead of the United Kingdom, for the simple reason that our ships would have greater incentives to dock here. With that in mind, I would like to propose a reduction in tariffs between our states” I said, looking at King Alfonso, who took a few puffs on his cigar as he surveyed our surroundings. We were on one of the king’s private estates in the countryside outside Madrid.
“That would depend very much on what you intend to bring into Spain, and in what quantities. We cannot stifle our domestic industry to make way for foreign products, however superior they may be. There are still the Cortes to persuade, and although it could be done, we would have to present a sensible proposal” Alfonso said after exhaling a cloud of cigar smoke.
“We were considering bringing in some eight thousand trucks next year, around thirty tons of assorted tools, roughly four thousand tractors, and some six hundred tons of industrial and natural fertilizers. We would also offer you six hundred Baltic crop-dusting aircraft, which are marvels of aeronautical engineering” I said with a faint smile, waving away the cigar smoke drifting toward my nose.
“The fertilizers would be most welcome, but the trucks and tractors would undoubtedly place the little domestic industry we have in serious difficulty. I know that many of your machines are of the highest quality, since they were designed for military service and must therefore meet far more stringent requirements than civilian models. However, much of our industry relies on small-scale workshop production and specializes in luxury automobiles. There are also Ford automobiles, whose manufacturer is in the final stages of establishing itself here in Spain” Alfonso said, glancing at several advisers who were watching us.
“We can compete with Ford. We are not asking for much. We could also establish a company of our own in Spain, if you wish, to encourage local employment, although that would delay matters considerably. Our factories are already in place, and we mass-produce a truck sold in Germany, Hungary, Bulgaria, Romania, the United Kingdom, and Ukraine. It is a proven model, and as I understand it, it would face scarcely any domestic competition. As for tractors, I know there are Spanish manufacturers, although much of their production is carried out in small workshops. I could offer to establish a company here in Spain, bring over my engineers to manufacture tractors, and incorporate some local manufacturers by purchasing their facilities and offering employment to their workers” I said, surveying the countryside around us.
“The second option interests me far more. We can reduce tariffs so that whatever you bring arrives at a favorable price and helps stimulate domestic industry, but I need factories established here, providing jobs here and paying their taxes” Alfonso said. We both noticed one of his advisers approaching.
“Regarding the aircraft, Duke Karl, I would like to know whether it would be possible to purchase military models, since our air service relies on very outdated machines. We would like more modern aircraft to continue our campaign against the rebels in northern Morocco. Your machines could prove useful, if you could supply a model more advanced than those currently at our disposal” said one of the Spanish officers who had approached us.
“We were coming to that. As we understand it, the Baltic Germans possess some of the best aircraft available for purchase. We have examined the plans for the crop-dusting machines you are offering, but I assume your military aircraft incorporate even greater advances. We would like to acquire machines of that kind and employ them in the campaign against Abd el-Krim” Alfonso said, looking for a few seconds at the Spanish officer who had spoken.
“Well… We could restore our crop-dusting aircraft to the configuration for which it was originally designed. Instead of carrying fertilizers or insecticides, we could equip it to carry bombs or fit it with machine guns or light cannons, allowing it to fly missions over Morocco and provide air support for ground forces” I said, looking at King Alfonso.
“We were thinking of the most modern aircraft you possess. We would like to purchase the best your aircraft factories can produce to fight the rebels. Now that we have ample funds to modernize Spain’s armaments, we can pay quite well” King Alfonso said, taking another deep puff on his cigar.
“That is complicated. It would seriously jeopardize the secrecy of our research, since nothing would prevent you from copying our aircraft and beginning to mass-produce them. I am afraid we cannot offer you our best models at present. We could, however, provide something superior to what we would offer others, considering that you will be granting us that tariff reduction, will you not?” I said with a smile, bringing my hands together and interlacing my fingers as I looked at Alfonso, who held the cigar between his own.
“Let us say we set tariffs at five percent for all products from the Baltic Duchy. What do you think?” King Alfonso said with a smile that accentuated his mustache.
“Oh, that would be very good. I would have preferred an agreement on free trade, without tariffs, but so be it. I had intended to make Spain, for a time, our largest trading partner among the countries with which we share no land border” I said, looking at Alfonso.
“They are considerably lower than British tariffs, in truth, given their strict regulations on industrial goods entering the country. I believe our agreement is exceedingly favorable” Alfonso said.
“The thing is, we have already negotiated preferential treatment. The Baltic Duchy is exempt from those industrial tariffs the British imposed. We pay only a flat rate of eight percent. Since they represent the largest market in the world, thanks to their extensive colonial possessions, I thought Spain might offer something better to draw our goods toward the lands of the Catholic Monarchs” I replied calmly.
“You have Germans in your ranks who fought in the desert, do you not?” King Alfonso asked.
“Yes. You are looking at one” I replied almost immediately.
“Ah, of course. You fought in the Sinai Desert, did you not?” Alfonso said.
“Indeed. Blowing British heads apart from more than fifteen hundred meters away. And now we do business, after I killed hundreds of them” I replied with a faint smile.
“Ha, ha. It has become clear that our colonial forces lack the training needed for the kind of war Abd el-Krim is waging against us. One of the things this rather impatient gentleman wishes to know is whether the Baltic Duchy could send instructors to help us hunt him down. As you yourself have said, Duke Karl, you can put a bullet through someone’s head from a considerable distance” King Alfonso said, tapping the ash from his cigar into an ashtray.
“I do not think my men would be the best choice for that task, King Alfonso. Remember that France is not on good terms with me. The French issued a warrant for my arrest over supposed war crimes they pulled out of their asses so they could arrest me, after I kicked their asses so hard at Dijon that seeing my face still stings, to say nothing of the humiliation I inflicted on them in Poland. If their troops see my men near the border of the French protectorate in Morocco, we could have a serious incident. They will be upset enough that we are now neighbors in Africa. Having my men train the Spanish along their border as well could provoke a conflict, since Abd el-Krim probably takes refuge near the boundaries of the French protectorate” I replied, shaking my head.
“Well, then I am afraid it will not be possible to grant what you ask. Five percent is the best I could secure through negotiations with the politicians. Nor can I intervene personally in every aspect of the matter, since you would have to negotiate with our government” Alfonso said.
“Yes, I understand, but that is beyond what I can offer for the moment. First, we must see how France reacts to having a Baltic colony as its neighbor” I said with a nod.
“Well… We shall see. But the reason we are here is that I would like to witness for myself that skill of yours that so many describe as legendary. According to numerous accounts, you are the deadliest man anyone could face, with more than a thousand confirmed kills during the Great War” Alfonso said, pointing toward something in the distant field.
“Alexander, my binoculars” I said, looking at my assistant, who promptly handed them to me.
“Ah… Targets at roughly fifteen hundred to eighteen hundred meters. Difficult” I said with a broad smile.
“Fairly routine for you, I imagine” Alfonso said as he rose. The other officers accompanying him gathered around him.
“Alexander, my rifle” I said, holding out my hand.
Alexander soon brought over the closed case in which I kept my sniper rifle and handed it to me.
One of my men acted as my spotter, and we began preparing to fire.
“Wind from the west. Target at fifteen hundred twenty-three meters. Compensate for bullet drop” my spotter said as he assessed the wind direction and calculated the distance.
I began adjusting my rifle’s scope and calculating the bullet’s drop. Then I waited for my spotter’s confirmation.
“Fire, fire, fire” the spotter said. I squeezed the trigger and felt the rifle’s recoil, with time to watch the target as the bullet covered the distance between us.
“We hit the arm. Adjust left” my spotter said as I worked the bolt and made the adjustments.
“Damn… He hit it” I heard Alfonso say beside me.
After making the corrections and hearing my spotter’s cue, I fired again. The bullet cut through the air and struck the dummy squarely in the chest.
“Now I understand why you caused the Russians so many headaches” King Alfonso said, studying the practice dummies through his binoculars.
“Yes, I am good, but I have a few prodigies among my men who surpass even me” I replied, preparing to fire at the most distant target.
Our conversation continued in that fashion, gradually becoming friendlier as we set business aside.
We discussed a few more personal matters until the conversation eventually turned to King Alfonso’s eldest son, who suffered from none other than hemophilia and was experiencing complications.
I promptly offered to share the medical knowledge Maximilian had gathered thus far, so the king could better understand his son’s condition and the care he needed. I also invited him to send his son to Riga, in the Baltic Duchy, where Maximilian could treat him, since his research into the treatment of hemophilia was the most advanced in Europe. Sharing that knowledge was important, as this was not a field of science that ought to be kept secret. The more doctors engaged in research, the sooner we could achieve.
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