Chapter 341: The Anglo-Australasian Pact
After several days of negotiation, on February 28, 1913, the last day of the month, the government of Australasia and the British delegation reached a certain consensus regarding British assistance to Australasia.
Both sides had a strong desire to cooperate. Australasia wanted more assistance to accelerate its rise by gaining more land and benefits from World War I. The British Empire, on the other hand, needed a country like Australasia, which already possessed the strength of a major power in many aspects, and could provide various logistical resources such as minerals, food, meat, medical supplies, and other resources.
The Australasia Navy could also patrol the Indian Ocean and other regions jointly with the British Navy to protect the British colonies in Africa and India.
With this, a complete shipping route would be formed, covering the British Empire's colonies: the Mediterranean, the Suez Canal, the Indian Ocean, Oceania, the South Pacific, Chile, and the Atlantic. This route would almost cover all the British Empire's colonies, with important resource providers like Australasia and Chile, and it would block Germany's access to external resources.
At the same time, if Australasia's Navy could help share the pressure on the British Navy in the Indian Ocean and South Pacific, the British Empire would be able to dispatch more fleet power to the Atlantic and Europe to block Germany's supply lines.
If this plan succeeded, even if Germany remained strong, the lack of logistical sources would weaken Germany, eventually causing it to be dragged down by the Entente Powers through the human-wave tactics.
To fully bring Australasia into its camp, Minister Grey received instructions from the British Cabinet to be very generous during these negotiations.
In the preliminary agreement on aid, Minister Grey agreed to provide financial support to Australasia amounting to about 30 million pounds, paid over seven years. For the first three years, 5 million pounds would be provided annually, and for the remaining four years, 3.75 million pounds per year.
While this financial aid might not seem like much, the advantage was that it was completely free, with no repayment required from Australasia. The total amount of 30 million pounds was substantial. Even compared to the most advanced super-dreadnoughts, it could build more than ten ships.
Even though the payment would be spread over seven years, the British government would still provide enough each year to build a super-dreadnought and a battleship, which was essentially free money that Arthur had no reason to refuse. Both the British and Australasian governments were satisfied with the financial aid.
For the British government, while the total aid lasted for seven years, the highest annual cost, 5 million pounds, was not a significant amount given their annual fiscal income of nearly 400 million pounds.
For Australasia, whether the 10 million AUD for the first three years or the 7.5 million AUD for the next four years, it was a significant sum. After all, Australasia's total fiscal revenue in the previous year didn't even reach 100 million AUD. This aid would provide the government with more financial reserves, which would be beneficial for the people and the military.
Both sides were happy with the financial aid, so it quickly became the first item in the Anglo-Australasian Pact.
Of course, financial aid was just a preliminary matter. Both sides knew that 30 million pounds would not be enough to elevate Australasia's military and industrial capabilities to a higher level; it was just a small addition.
In order to have Australasia willingly join the future European war, the British would need to provide more support, perhaps even more land.
As March began, the discussions continued, and the next step of the negotiations focused on the support from the British Empire in terms of technology, personnel, and industrial equipment.
For any country, advanced technology, equipment, and talent are essential for development. Advanced technology and equipment are the present of a nation, while abundant and excellent talent is the future. With the British Empire's vast resources, Arthur certainly wouldn't miss the opportunity to secure more from them.
Currently, Europe accounts for at least 80% of the world's top talents, with the U.S. holding 10% and other regions the remaining 10%. Despite the large loss of talent due to the looming European war, Europe remains the brightest jewel in the world, with the most advanced technology, the largest industries, the most prosperous economies, and the most advanced systems.
As the strongest nation in Europe, the British Empire had an unmatched talent pool, particularly when it came to naval expertise, where no other country came close.
Australasia's naval technology had received help from both Germany and Britain, and was now world-class, but there was still a considerable gap when compared to the British Empire. Arthur was keen to secure more of Britain's technological and personnel resources.
At Arthur's behest, the Australasia government specifically discussed the second round of negotiations, aiming to secure as much aid as possible in terms of technology, talent, and industrial equipment.
The more aid Australasia received, the more it could increase its current strength and future potential. Thanks to Arthur's support, the government officials were bold in their requests. Several cabinet departments put forward significant demands for technology, equipment, and personnel, even asking for hundreds of experts from Britain.
In just a few minutes, the ministers had outlined requests for thousands of personnel from Britain annually, which even the British government found overwhelming.
Minister Grey, though confident in the wealth of the British Empire, could not agree to such vast demands. If these were to be met, Australasia's strength would likely surpass the top five powers. This clearly conflicted with the British Empire's strategic goals.
The British needed a nation with some strength, able to provide logistical support and help protect their rear during the upcoming European war. If Australasia was able to counterbalance the U.S. in the Pacific, it could easily become a formidable adversary for Britain.
After ten days of intense negotiation, on March 11, 1913, the second key point of the agreement was finalized.
The pact stated that from 1913 to 1919, the British Empire would provide large amounts of industrial machinery, modern technology, and skilled personnel to Australasia. The equipment and technology would be sold to Australasia at prices slightly below market value, with British experts providing instruction on these technologies.
This would allow Australasia to skip over the long period of learning and directly gain British expertise, rapidly advancing their technological capabilities.
Although purchasing the equipment and technology would require money, for Australasia, whose budget was consistently in surplus, funding was the least of their worries.
Minister Grey's next demand was that after the outbreak of the European war, Australasia should send at least three battleships to patrol the Indian Ocean alongside the British Navy.
The Indian Ocean, which bordered both India and Africa—important British territories—needed to be patrolled during the war to protect these regions. By having Australasia's Navy participate, the British Navy would save valuable warships that could be redeployed to the Atlantic for European naval combat.
Without hesitation, Prime Minister Kent immediately agreed to this condition, as it was not difficult for Australasia to send three battleships to assist Britain.
Minister Grey's second request was that if the European war broke out, Australasia should send at least 200,000 troops, with at least a quarter of them being regular troops. In return, Britain would provide logistical support for Australasia's military in Europe, and the British Empire would cover half of the military expenses for Australasia's troops in Europe.
This was a common condition the British had also imposed on their other allies, France and Russia. For Russia, whose financial situation was particularly dire, Britain's support was essential to maintaining the army's operational capacity.
Prime Minister Kent, after consulting with Arthur, modified the request. Australasia would send at least 250,000 combat troops to Europe in the event of war, with over 50,000 of them being regular forces. However, the command over these forces would remain under the control of the Australasian Ministry of Defense, meaning the British, French, and Russian forces could request cooperation, but could not give direct orders.
Arthur's thinking was simple. While he was confident in the combat abilities of his own army, he knew that untested armies could never reach their peak potential. If the Australasian forces could participate in the war, it would not only satisfy Britain but also strengthen their own military capabilities.
However, Arthur was also determined to ensure that his troops would never become cannon fodder for Britain, France, or Russia. The final command would rest with the Ministry of Defense in Australasia, not with any foreign powers.
With these agreements in place, the Anglo-Australasian Pact was solidified, ensuring that both nations would move forward as allies, with both sides benefitting from their mutual cooperation.
(End of Chapter)
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