Empire of the Ring Chapter 553 - Gold Exchange (2)

Chapter 553: Gold Exchange (2)

As the U.S. protectionist trade policy caused U.S. led world order, China picked Central Asia as a stopover for its One Belt One Road project to tap into Europe and the Southwest Asian market, but as Kazakhstan, which was a secret partner of China, turned into a constitutional monarchy after the revolution. China could not do anything without Kazakhstan’s cooperation.
For China, there was no other way but to persuade or force Kazakhstan to support its project, but it was not easy because of the strong air power and air defense system of the U.S. and Kazakhstan.
For that reason, Youngho had been focusing on air power and air defense expansion after taking power. That was the only way to overwhelm China’s conventional weapons and its 2 million troops.
By the time there were voices of complaints that Kazakhstan was focusing too much on airpower, it had a deal with South Korea to produce self-propelled guns and tanks locally in Kazakhstan, and now the Army was able to be armed with weapons that were produced in Kazakhstan.
On top of that, Germany had proposed a technology partnership in the defense industry as a means to secure gold.
Prime Minister Kasim and other related ministers seemed to welcome Germany’s proposal.
“Your Highness. Germany is also increasing its gold holdings, so shouldn’t we also do the same?”
“We consume about 20 tons of gold a year. And the weight of gold against the foreign exchange reserves is over 60 percent. If we can have a strong relationship with Germany, giving away 40 tons a year is not an overwhelming amount to spend. Instead, you can rest assured that the gold produced by royal mines will be preserved.”
Everyone seemed relieved that the royal family would keep its gold separately.
This was because they believe that the royal family’s gold was an asset to the country.
“Well, why don’t we ask for precision machinery or electronics technology this time? We already have a technical partnership with Korea’s defense industry.”
“However, it’s a great opportunity to introduce superior weapons of Germany. There’s no need to refuse it. I at least want to get some of the finished products.”
“Of course, you should get some, but if you turn to private sector cooperation, you’ll get more out of it. That’s what the German government has in mind when it mentioned about a private submarine enterprise. It’s more beneficial for us to receive many technology transfers from the general industry instead of getting a few from the defense industry. It’s also a great opportunity to develop Western Kazakhstan.”
“Are you saying we should attract an assembly plant?”
“Yes, sir. Starting with an assembly plant, we can naturally learn advanced technology.”
China had also learned cutting-edge technology while serving as a factory of the advanced countries. The world was now almost completely lost without Chinese products.
“First of all, we have to decide how much gold we’re going to supply to Germany.”
“300 tons in five years is a little bit too much for us. Why don’t you make a counterproposal to provide 400 tons in a period of ten years?”
If the contract period was extended, Kazakhstan would be able to take advantage of Germany to the full extent. And if the production of gold increased dramatically, it could supply more gold to Germany.
“That’s a good idea. Then let’s send our government officials to finalize the gold deal.”
“And do you have any intention of receiving a loan from Germany to use it for Kurdish settlement funds?”
“I have rejected it, but I will accept it if Germany insists. If the officials go to Germany this time, they should also discuss that.”
There was no reason to refuse loans since Germany was offering it on humanitarian grounds. It was a debt, but it would work as a safety device for Kazakhstan if a lot of foreign capital came in because no country wanted its debtor country to go wrong as a creditor.
***
Around the time the German officials left the royal territory, Youngho heard that China was bent over to buy Uzbek gold mine. Uzbekistan was known as the country that had the world’s best gold deposits.
China had been producing 500 tons of gold a year, but because it also consumed a lot of gold, it’s gold holdings were only about 1,700 tons. Some economists believed that China had 10,000 tons of gold holdings, but officially, it took the world’s fifth place in gold holdings.
Since Youngho was concerned about China’s movement, he discussed it with Eriksson.
“Eriksson, the G7 countries’ movements are suspicious. They’re all over the place to secure gold.”
“Your Highness, we already have foreseen this and prepared in advance. We don’t have much to worry about.”
“I know that, but China’s drooling over Uzbekistan’s gold. I’m afraid Uzbekistan is going to sell a gold mine to China or something. We should do something about it, shouldn’t we?”
“The Uzbeks should be aware of the circumstances of the world, but will they be swayed by the Chinese government?”
It was questionable how long the Uzbek officials would be able to hold out against China’s pork-barrel offers and bribes.
It was already well-known that Central Asian countries had less integrity than Africa. Since the Soviet era, officials who had been rampant in bribery had cared nothing about national interests, but only about individual wealth.
“I don’t want to regret it later, so I’ll have to do something in advance.”
“Shall I go to Uzbekistan then?”
“By yourself, Eriksson?”
“Now that I’ve heard what you said, I think it’s better to give a word of warning to Uzbekistan. We need to share information as an ally.”
“Then, why don’t you go there as a royal special envoy? Let’s inform Uzbekistan why other countries are so busily seeking gold. If Uzbek officials don’t listen to their friend’s advice, I’ll think of a stronger method to deliver the message.”
Eriksson had never moved this directly. He must have felt something fishy, too.
Youngho continued,
“In the worst case, I’ll consider adding more troops to the Uzbek border.”
“Your Highness!”
Eriksson was stunned by the word that he would even use force. Given Youngho’s character, he was a man who could easily do so.
“Do you know how much money Uzbekistan owes China? China will threaten Uzbekistan to pay it back immediately. If necessary, we should also consider offering Uzbekistan a loan.
But if it still doesn’t listen, we’ll have to do something about it.”
Uzbekistan’s gold mine must not be taken away by China no matter what.
China would be furious if Kazakhstan pressured Uzbekistan, but that was something that Kazakhstan could do as the head country of Central Asia.
Youngho intended to protect the Uzbek gold mine even if he had to drag Russia in it. If Russia wanted some gold, he was willing to give it since stability in Russia was directly linked to the stability of Kazakhstan.
30 percent of Kazakhstan’s population was Russian, and if it became uncomfortable with Russia, Russian people in Kazakhstan would be shaken.
Moreover, maintaining good terms with Russia was necessary in order to continue the Siberian project, the Arctic route, and the canal project.
***
Eriksson immediately went to Uzbekistan after Youngho informed the Uzbek president that he would send a special envoy.
It was only a two-hour flight from the royal territory to Tashkent in Uzbekistan, so his trip did not take long.
His face was bright as he came to report about his trip to Youngho.
“Eriksson, you came back.”
“I had a cup of coffee on the royal jet and I arrived at Tashkent. I came here in a hurry because I didn’t want to keep you waiting.”
“Oh, I could wait for another day. Since you’re already here, why don’t we have dinner together and talk?”
“My stomach isn’t feeling well because I’ve been nervous the whole time. How about a drink instead?”
“Sure. I’ve been nervous too.”
Since Uzbekistan’s fate was at stake on Eriksson’s visit, Youngho had been nervous too.
“Your Highness, I’m glad that I hurried to visit there today. The Uzbek government was about to exchange memorandums of understanding with China soon.”
“What kind of offer did China make?”
“It offered ten billion dollar worth of loans in addition to the purchase of the gold mine.”
“That’s a big offer. When you get that money, you’ll be reduced to a Chinese puppet…”
“I think the Uzbek government wanted to accept it for the sake of national economic development. Fortunately, the officials decided to put it on hold after receiving your letter and listening to my explanation.”
“You mean they can change their mind depending on what we offer them?”
“Yes, they said that they don’t want to lean on China, but they can’t afford to lose the opportunity to develop their national economy. So, I warned them a little bit.”
“You bluffed?”
“Don’t be so surprised. How dare can I interfere in international affairs? I’ve only hinted them about what you were thinking.”
“You didn’t say we are going to use force, did you?”
“Hahaha… So you had no intention of using force at all?”
Since the two were talking in a private setting, they were joking about using force, but using force was the very last means when nothing would work and Uzbekistan still decided to deal with China.
“The Uzbek president and the economic officials know your character very well, as a humanitarian who decided to accept nearly a million Kurdish refugees.”
“Then do Uzbek people expect us to give them something for free as well?”
“I told them Your Highness has stepped up to help Uzbekistan, but if they continue to do business with China, they won’t get any benefit from us.”
“How are we going to help Uzbekistan?”
It was more of a sweet talk than a bluff. It meant that Kazakhstan would not overlook Uzbekistan’s economic difficulties.
“There’s nothing to worry about. We need to ask to share the burden with advanced countries that fear China’s advance. We should request them to contribute since we’re trying to protect Uzbekistan from China.”
“Will they step up for Central Asia?”