599 tit for tat 1
"We have attached great importance to your country's concerns. We need more funds to complete combat readiness in order to deal with the unexpected future. We understand this very well, so we decided to increase the annual loan amount to US$80 million and keep the deadline unchanged." After a brief greeting, Roosevelt proposed the revised negotiation conditions.
"President Roosevelt, we are not concerned about how much money we should be very clear. Even if the United States doubles the amount of loans, we still have the ability to pay. What we lack is working capital, and after limiting a lot of materials can only be purchased from the United States, currency is actually just a symbol. Even if we ask for a loan of 200 million US dollars per year, Germany is still able to repay. Do you admit this?" Ruprecht asked impatiently.
Is Germany rich? If the government may have less working capital, but if it comes to fixed assets, it is quite a lot. Not to mention domestic assets, even if it is simply invested in foreign assets, it is a very large number. Even if it takes out a very small part of it, it is enough to wipe out American loans and interest.
In 1900, Germany's total foreign investment amounted to 15 billion marks! By 1911, there were 35 billion marks! Although it was still not as good as the old empires such as Britain and France, the amount of foreign investment was half that of Britain and two-thirds of France. Don't forget that Britain and France have accumulated foreign investment over hundreds of years, and the foreign investment of the German Empire only started after the founding of the Second Empire.
Because of the frequent economic and trade activities between the United States and Germany, Germany also invested a lot in the United States. During the war, these assets could be used to make up for the expenses of foreign procurement. The 35 billion mark was nearly 1.75 billion pounds. Even if only one-quarter of them could be accepted by the Americans, it would be enough to compensate Americans for loans and interest. Therefore, it seems that Americans have great risks, but in fact they are not big at all. They can even take advantage of the war to acquire German foreign assets at a low price.
"I'm afraid you, the US Congress behind you and those capitalists have begun to consider how to allocate the assets of the German Empire overseas after the outbreak of the war? All you need is our transfer agreement, and you can take advantage of the situation and acquire various assets from us at half or even lower prices. You used a little liquidity to exchange for the great expansion of the US economy. I understand this." The prince's words revealed a strong sense of disdain.
"But we still solve the liquidity problem that your country needs most now, which is already an important support, right?" said Rut, who was standing beside him.
"With the overseas assets of the German Empire as guaranteed, we can also raise enough funds from your country's consortium and banks. If we only make money, this negotiation is not attractive to us. So, I want to talk about something else." Ruprecht said staring at Ruth opposite.
"I have talked to Secretary Rut about this issue. I need a guarantee, a tangible political guarantee. When the German Empire and the Allies are at war, the United States can at least remain neutral, but this is a simple, minimum requirement for allies. You and your government have not given it. You are waiting for the price. As long as the situation is right and the profit is reasonable, you will stab us in the back without hesitation. Maybe it is not you, but it may be someone else."
Chapter completed!