While the American and French ministers were trying to get Brazil to accept the loan, British Minister Edmund sent telegrams to the London government many times, reporting changes in the situation in Brazil and asking the London government to give the embassy in Brazil greater autonomy.
Edmund's request again was not agreed to as it was the first time. After two days of discussion, the London government sent a telegram to the Embassy in Brazil stating that the United Kingdom must maintain Brazil's status as the largest trading country. At the same time, the Embassy is responsible for negotiating with the Brazilian government.
The British-led "Committee for the Management of Brazil's Debt" was established to be responsible for the exclusive handling of Brazil's foreign debt and loan transactions.
Monopolizing Brazil's foreign debt market and loan business is the bottom line for transactions set by the London government for the embassy in Brazil. Although on this basis, the London government agreed to coordinate with the Brazilian government on the issue of warship defects, Edmund was still very disappointed.
Before the Paraguay War, the United Kingdom acted as Brazil's exclusive debt broker. Most of the Brazilian army's army and naval equipment were provided by the United Kingdom, and most of the various industrial facilities built in Brazil were purchased from the United Kingdom.
But now, with the addition of two strong competitors, the London government, without truly understanding the situation in Brazil, is still trading with Brazil with a can-do mentality, and sooner or later it will suffer big losses.
Edmond had a long history of dissatisfaction with the bureaucrats who filled the foreign affairs department. After communicating with the locals to no avail, at noon on August 22, Edmond was invited to enter the palace to interview Pedro II.
In terms of several major principles for the transaction between the two parties, although Edmund deliberately downplayed the content emphasized by the London government, Pedro II politely refused to negotiate with the British after personally verifying the authenticity of what Witte said.
trade.
In the afternoon, Bernard and Vitte, who entered the Royal Palace of Rio de Janeiro again, had a frank negotiation with Pedro II.
At the request of Pedro, the French Minister Bernard agreed to reduce the price of the warships from 400,000 pounds to 370,000 pounds. The American Minister Witte took the opportunity to sell the surplus warships at half price on the grounds that Pedro, who served in the Civil War, would
The ironclad HMS Arnock,
Sold to the Brazilian Navy at a low price of 180,000 pounds.
The ironclad USS Roanoke has a displacement of 6,300 tons.
With a speed of 8.5 knots and a standard configuration of 340 naval personnel, it is a warship with relatively complete performance.
The Roanoke has only been in service for six years and has not yet reached the time of retirement. According to normal warship trading procedures, the Roanoke ironclad is sold for about 300,000 pounds. Naturally, the Americans would rather sell it at a loss to reach a deal.
There are other compensation benefits.
The matter did not exceed the estimate of American Minister Witte. After seeing the offer and the performance of the warship, Pedro II was very moved, but considering that he had been deceived by the British once, he was much more cautious this time and asked in advance
: "Your Excellency, Minister, the Roanoke doesn't have the same flaws as the Sovereign-class ironclad, does it?"
"Your Majesty, please rest assured that the Roanoke has superior performance. In the battle with the Confederate Navy in 1865, the Roanoke relied on the warship's flexible maneuverability and powerful artillery weapons to successfully sink a Confederate ironclad. The warship itself
Suffered only minor trauma."
The Roanoke has experienced actual combat tests and has the result of sinking enemy ships. In Pedro II's heart, the combat effectiveness of the warship that he is most concerned about is basically guaranteed. Therefore, his attitude is much more straightforward and he directly throws out
The last condition is that we hope that the United States will allow the Brazilian Navy to send specialized personnel to the United States to inspect the performance of warships. If Witte agrees to this condition, all remaining commodity transactions can be discussed slowly.
It wasn’t too much of a request to inspect the goods first and then pay. After a moment of consideration, Witte made the decision and agreed.
American products have some shortcomings in the initial stage, but Witt is still relatively confident about the Roanoke, which he learned about in advance. The Roanoke is made of all steel and has two 15-inch Dahlgren guns installed on the upper part of the warship.
Smoothbore guns, two 11-inch Dahlgren smoothbore guns and two 150-pound Parrott rifled guns. The entire warship not only has strong armor protection, but also has a strong artillery attack system.
The United States was later than Britain, France, and Austria in the development of ironclads, but in terms of modern warship manufacturing, the United States was the first country to try to manufacture all-steel warships. Therefore, the ironclads manufactured in the United States are closest to the main battleships of the twentieth century.
American warships have their advantages and specific shortcomings. For example, the biggest shortcoming of the ironclad USS Roanoke is its short range and its inability to conduct ocean voyages and deep-sea combat missions. Of course, in the eyes of Witt, this shortcoming is not a big problem. The Brazilian Navy
The newly established navies of China and the Chinese are both novices. It would be good if both parties can carry out regular maritime operations in the offshore area. As for ocean operations, that is an issue that only established maritime powers such as Britain and France should consider.
After successfully selling his own short-legged warships, Vitte first reached a preliminary consensus with Pedro II on three major aspects: loans, mining rights and railway construction rights.
In terms of loans, the United States provided Brazil with two tranches of a total of US$7 million. The first tranche of US$2 million was delivered within one month after the contract was signed, and the second tranche of US$5 million was delivered over one year.
The interest on the loan of US$7 million is calculated based on the low interest rate standard of 3% per year, and the repayment period is extended to ten years.
In terms of minerals, the Brazilian government authorized American businessmen to explore mineral resources in Mato Grosso do Sul and Pará in the north. At the same time, it sold a state-owned iron ore mine in Minas Gerais for 200,000 pounds to
An American businessman, the mine is jointly funded and held by three American banks.
In terms of railways, American and French businessmen will be responsible for jointly constructing the railway from Sao Paulo to Ribeirão Punas. After the railway construction is completed, the three countries will establish the Sao Paulo-Ribeirão Punas Railway Management Company, with Brazil accounting for 10% of the shares.
Forty-five, France holds 25% and the United States holds 20%.
French and American businessmen obtained considerable commercial contracts during the transaction process, but in Brazil, British companies still had superior control over Brazil's economic interests.
Brazil's iron ore resources are mainly distributed in Minas Gerais state accounting for 70%, Mato Grosso do Sul state accounting for 21.5%, Pará state in the north accounting for 7.3%, and other states accounting for 1.2%.
Among the three major iron ore producing areas, American and French businessmen have only obtained exploration and iron ore mining rights in the states of Pará and Mato Grosso do Sul. Minasgi has the largest proportion of iron ore reserves.
The iron ore exploration and mining rights in Las Vegas are mainly concentrated in the hands of British businessmen. The French and Americans can only rely on the executive order of Pedro II to accept several state-owned mines that have been mined for many years.
In terms of businessmen's competition, the United States and France have temporarily won a victory, but are still at a disadvantage in the overall situation.
