Empire Rising: Spain

Chapter 544 - 267: Second Colonial Exchange

The Pink Map Plan was not something the Portuguese suddenly proposed; it was a Great African Colonization Plan put forth by Portugal based on the conditions of its African colonies after the European powers accelerated colonization in Africa.

The establishment of Portugal’s West Africa Colony and Mozambique Colony had been a long-standing process, and the topic of merging these two colonies had always been a matter secretly planned by the Portuguese Government and the Royal Family.

The Portuguese have also been exploring the geographical environment of the Congo Basin. Unfortunately, Spain was completely ahead of Portugal, establishing the Congo Territory even before the Portuguese.

This seriously disrupted the Portuguese plans, leaving Portugal to retreat and seek alternatives by conducting colonial development south of the Congo Basin, attempting to establish a Great African Colony between the Spanish and British colonies.

The difficulty of this is imaginable. Spain’s Congo Territory has been expanding southward, while the British Cape Colony has also been expanding northward.

Portugal’s target location lies between the Spanish and British colonies, making it the most awkward position. A slight misstep could offend both Spain and the United Kingdom, which significantly slowed down Portugal’s colonial progress, and the proposal for the merger of West Africa Colony and Mozambique Colony almost came to a standstill.

Upon hearing Prime Minister Canovas’s proposal, the Portuguese ambassador was first taken aback, and then somewhat pleasantly surprised and unexpected.

The plan that Portugal was about to abandon domestically was unexpectedly brought up by the Spanish Government, which was also willing to help Portugal complete the merger of the two colonies.

Though inwardly joyful, the Portuguese ambassador did not show it, instead displaying a rejection attitude: "Please forgive me, Your Excellency the Prime Minister. Matters concerning the colonies are very significant; I need to consult with my country first."

Prime Minister Canovas was not in a hurry; he nodded and said, "That is only natural. This is merely a thought of mine, and regardless of whether this idea can be realized, it will not affect the relationship between our two governments."

To prevent the Portuguese from discovering that Spain’s goal was to acquire Portugal’s West Africa Colony, Prime Minister Canovas, after a brief pause, proposed another idea, namely a customs union between Spain and Portugal.

So-called tariffs are actually the taxes involved in import and export trade between countries and regions. Due to the relatively isolated nature of the Iberian Peninsula, apart from depending on supplies from its colonies, most of the time Portugal needs to import from Spain, with only a small portion being imported from other European countries.

If Portugal and Spain could establish a customs union, it would have both advantages and disadvantages for both countries.

For Spain, Spanish industrial products and agricultural products could enter Portugal at lower prices, potentially even achieving economic control over Portugal.

Since Spain dominates both industrial and agricultural production, a customs union would bring far more benefits than disadvantages for Spain.

As for Portugal, establishing a customs union would allow for a continuous import of more affordable industrial and agricultural products from Spain.

The downside is also evident: Portugal’s industrial and agricultural development would be restricted. The lower the price of the imported products from Spain, the more it would affect the domestic market environment in Portugal.

In terms of agriculture, it’s not too troublesome; Portugal’s grain production is not high, but the population is also small, so not a lot of grain needs to be imported.

The imports needed are vegetables and fruits, areas where Portugal’s production is not high, so it would hardly affect the income of farmers and related cultivators.

However, in the industrial sector, the impact of a customs union is still significant. Once a large number of cheap Spanish industrial products flood Portugal’s market, there would be no chance for the Portuguese industry to rise.

More importantly, Portugal and Spain are neighboring countries; such an economic impact would be even more fatal. Once Spanish industrial products completely overrun the Portuguese market, wouldn’t that essentially amount to Spain controlling the Portuguese economy indirectly?

It is precisely because of this that when Prime Minister Canovas mentioned a customs union between the two countries, the Portuguese ambassador exhibited a more definite rejection attitude.

Although a customs union would have some benefits for Portugal, it does not want to be led by Spain. Portugal has a large number of colonies and can also import supplies from other European countries; the shortage of goods is not as severe as imagined.

This also indicates that the benefits of a customs union with Spain are limited, while the drawbacks are very obvious and limitless.

After the Portuguese ambassador rejected Prime Minister Canovas’s proposal, the two discussed some unimportant topics before quickly ending the meeting.

The Portuguese ambassador left expressionless, but as soon as he returned to his carriage, his mood immediately became excited.

"Quick, return to the embassy; I have important news to report to my country," the Portuguese ambassador hastily instructed.

The attendant responsible for driving the carriage nodded respectfully, and with a flick of the whip, the entire carriage began to move.

On the Spanish side, after Prime Minister Canovas made the proposal regarding the exchange of colonies, the Spanish Government no longer paid attention to Portugal’s movements.

If the Portuguese Government is interested in exchanging colonies, they will naturally propose relevant suggestions. If the Portuguese side doesn’t have any ideas for the moment, there’s no point in the Spanish Government being anxious.

Visit and read more novel to help us update chapter quickly. Thank you so much!

Report chapter

Use arrow keys (or A / D) to PREV/NEXT chapter