Chapter 297: The Finest Son-in-Law
What was most noteworthy was that Joseph had not mentioned France's largest export commodity—wine.
In comparison, products like glass and fur goods were pillars of Austria's economy.
He chuckled to himself. The young nephew was still inexperienced. While adding a large number of French goods with reduced tariffs to the trade agreement could make the treaty appear more appealing, these combined would not amount to the export value of wine.
Therefore, he nodded generously. “Then, we’ll set the tariff on paper at 15%, and the others at 5%. How does that sound?”
Joseph immediately countered, “Look, I’ve reduced tariffs on Austria’s linen goods to zero. At the very least, could you further lower tariffs on steel products or chemical goods?”
The Holy Roman Emperor smiled, took a sip of his wine, and said, “Alright, since my dear nephew insists, let’s set the tariff on chemical goods to zero.”
Austria still had some steel industry, with significant exports to the German states. But chemical goods? To be honest, he wasn’t even sure what those included—probably something like sulfuric acid. Their annual trade value might not even reach 10,000 florins.
Joseph put on a youthful and innocent smile, bowing to his uncle. “You are truly a generous elder. This makes our trade agreement appear much fairer.”
He quickly followed up, “Dear Uncle, to facilitate trade between France and Austria, perhaps we could include a clause allowing mutual free navigation of each other’s inland waterways in the agreement.
“Oh, of course, necessary boarding inspections prior to passage would still be permitted.”
Joseph II was nearly exhausted and weakly waved his hand. “I’ll seriously consider this.”
Joseph seized the last opportunity and hastily said, “Could we extend the mutually beneficial trade agreement between France and Austria to the entire German region?
“We could include Bavaria, Salzburg, Württemberg, Baden, and other states in the treaty. In the future, even Saxony, Thuringia, and Hesse could join as well.”
Joseph II shook his head tiredly. “They are all worried that French and Austrian goods will overwhelm their markets. They likely wouldn’t be willing to sign such a tariff-free agreement.”
Even relatively larger German states like Bavaria and Saxony struggled to resist the influx of Austrian goods, let alone the smaller states. In this era of underdeveloped market economy theories, tariff rates were astronomically high.
Joseph’s eyes flashed with a sly smile. “Then we could offer them concessions.”
The Holy Roman Emperor summoned his strength and asked, “But why do that?”
Joseph thought to himself, "Of course, it’s to leverage Austria’s influence among the German states. It’s much easier than France negotiating with each one individually."
But what he told his uncle was: “This could reduce their trade volume with Prussia.
“And reduced trade means less contact, which would positively impact Austria’s prestige among the German states.
“In fact, as long as the negotiation strategy is appropriate, Austria won’t really suffer losses. Austria’s sheer size guarantees that, even if the treaty terms are not entirely favorable, the country will still benefit from a larger market as it develops.”
Though Joseph II was incredibly fatigued, his eyes suddenly brightened at these words.
He was a clever man and immediately grasped his nephew’s meaning.
Take small states like Thuringia and Württemberg, for example. Even if they excelled in a specific industry, how strong could they truly be? Even with advanced technology, their small size limited their export capacity. Furthermore, Austria could generally find alternative sources for the specialties of these small states.
However, for a major power like Austria, any industry it dominated would inevitably see smaller nations subjected to a flood of its products.
Thus, short-term benefits should be ignored. First, bind the smaller nations to Austria, expanding Austria’s market and making them dependent on Austrian goods. That was the most critical strategy!
Perhaps the long-cherished dream of a unified Germany, unattainable through warfare, could be realized through this method.
The emperor’s gaze at his nephew was filled with astonishment. This couldn’t possibly be a strategy devised by his sister; he knew her too well.
Was this the work of this young "Son of God" or one of France’s capable ministers?
In truth, Joseph had simply applied the concept of economic colonialism from future eras. Which major power in the future didn’t surround itself with smaller nations, establishing unified markets?
What the Holy Roman Emperor failed to realize was that, while he believed Austria was leading the German states and tying them to itself—with France reaping only minor benefits—in Joseph’s eyes, Austria and Thuringia, Württemberg, and others were no different. They all bore the label of markets for French industrial goods.
Finally, Joseph II could no longer endure, signaling for his brother Leopold II to continue the negotiations with their nephew. With the assistance of his servants, he retired to his chambers for rest.
By the time the banquet concluded, Leopold II and Joseph had already delved into the specifics of the trade agreement.
Leopold had far more energy than his brother, allowing him to think more thoroughly and anticipate industries in which France might pose a threat to Austria. He proactively sought to safeguard Austria’s interests in these sectors.
What he did not anticipate was the rapid development of French industry, which would soon turn nearly every valuable industry into a French stronghold.
As Leopold II and Joseph, surrounded by noble attendants, left the banquet hall and headed toward the music hall, Maria Louisa discreetly signaled to a noble on Joseph’s left, then quickened her steps to take his position.
She was nearly as tall as Joseph and tilted her head to remark, “My dear, the emperor looked at you earlier with such admiration and satisfaction.
“Sigh, he has never shown such fondness for Clementine.”
Joseph hesitated for a moment before replying, “Cousin Clementine is the kindest and most charming lady. I’ve heard the emperor favors her above all his younger relatives.”
Maria Louisa covered her mouth with her fan and laughed. “Clementine has only one flaw—she can be terribly jealous and overly attentive to those she fancies.”
She suddenly lowered her voice. “So, if you avoid having other mistresses in the future, oh, like your father did, I believe she’d be delighted.”
Joseph froze again, not expecting the conversation to take such a turn. He began to sweat slightly and hurriedly changed the subject. “Ahem, well, I heard that Mr. Mozart will perform shortly?”