Chapter 93

In the beautiful spring of Colonia, the grassy plains, like a green canopy, stretched from underfoot to the horizon. A winding river flowed in from the distant horizon, and the grass along its banks was dotted with brightly colored wildflowers. A gentle breeze brought the fresh scent of the wildflowers.

Xiaobaitu lay by the riverbank, his bare feet splashing in the clear, flowing water, creating small ripples. The warm sunlight shone on his face, making him drowsy. A magnificent warhorse nearby snorted contentedly, occasionally licking Xiaobaitu's face with its wet tongue.

"Xiao, what a leisurely afternoon," Lieutenant Leo loosened the collar of his splendid uniform, plopped down beside Xiaobaitu, and threw a stone into the river, smiling as he spoke.

"Instead of fulfilling your duties in your sheriff's office, you come to the riverbank to idle away your time, Mr. Leo. Do you know how much money you're losing?" Xiaobaitu pushed away his horse's tongue and teased Lieutenant Leo in fluent Spanish.

"Alvaro's chamber of commerce controls most of the trade here. As long as he's around, my share won't be lacking." Lieutenant Leo tossed another stone into the river, gazing at the splashes on the surface, and continued, "Maybe you're worried about law and order? My dear Xiao, I think you're overthinking it. The new Italians may be clumsy, but they can still handle security."

"You're wrong, Leo. In fact, the Italians are very shrewd and cunning. Perhaps in the time you've been away, they've already earned enough extra to cover a month's wages."

"Then you must be talking about the Lombards, not these foolish Sicilians." Leo lay down comfortably and stretched lazily.

"By the way, a lot of Italians have come to Colonia recently." General Xiaobaitu placed his hat over his face to stop his horse's tongue from further mischief and said in a muffled voice.

"There's no harm in telling you. In fact, not only in Colonia, but over 3,000 Italian immigrants came to the entire La Plata region last month. They are scattered around the Buenos Aires area, cultivating the land and raising cattle and sheep." Lieutenant Leo said with a peculiar tone, "More immigrants will come, Sicilians, Lombards, Catalans, and so on. The Viceroy of Peru and the Council of the Indies have been deeply shaken by this failure, and even His Majesty the King has begun to pay attention to the vast La Plata region, which he has long neglected. Xiao, to be frank, you might be in for some serious trouble."

Xiaobaitu whistled and exaggeratedly said, "Wow, what a grand move. 3,000 immigrants at once, and the 'Master of Land and Sea'—the great King Philip IV has the courage. Is he planning to develop La Plata? How many people live in La Plata now? 30,000 or 40,000? Ah, perhaps in a year, the population of La Plata will double, and thousands of Italians and Catalans will flood into the eastern region looking for job opportunities?"

"Xiao, that's not a funny joke," Lieutenant Leo said seriously, "The kingdom is involved in too many wars. We are at war with the Dutch, in a semi-war state with the Swedes and German Protestant princes, and we are extremely hostile to the French and English. I don't think the kingdom needs to get involved in another inappropriate war, especially when the kingdom's fragile finances are on the brink of bankruptcy. And the Eastern Republic, do you think it's necessary to risk a long-term blockade of the coastline and fight a war that will cost more than it's worth?"

"Alright, dear Lieutenant Leo." Xiaobaitu sat up and spat out the grass stem he had been chewing, "No one wants war. Look, how prosperous the trade in Colonia is now. We can freely exchange the goods we need here without having to deal with those greedy monopolists. The majority of people benefit, and only a few big merchants suffer. We are acting according to God's will. The previous war was truly a tragedy. The nobles and big merchants hijacked your country's policies, sacrificing the lives of innocent soldiers just to protect their interests. Leo, think about it, are these corrupt people worth fighting for? The rich and vast La Plata region doesn't need these blood-sucking kings, nobles, and monopolists. The affairs of La Plata should be handled by the people of La Plata themselves, without interference from the Peninsula."

"Xiao, you're instilling dangerous ideas in me," Lieutenant Leo said, but there was no anger on his face, "Perhaps the affairs of La Plata should be left to the Peninsula, but I also think you Easterners should stay out of it."

"No, no, no! Leo, listen to me." Xiaobaitu bared his white teeth and smiled, "Do you remember the 'Southern Common Market' I told you about? La Plata has abundant cattle, sheep, and timber, Brazil has coffee, cocoa, sugar, and iron ore, Chile has copper and saltpeter, Peru has silver and spices, New Granada has coal and dyes, and we can provide various industrial products. See, what a perfect market..."

"Maybe, but I always find you Easterners untrustworthy," Lieutenant Leo said, shaking his head as he looked at Xiaobaitu's innocent face, "Let's not talk about this. Xiao, Alvaro is coming, he might need something from you."

Xiaobaitu turned his head and saw Alvaro Rodriguez waving his arms as he walked over, followed by a young man, his son Alvaro.

"Xiao, I heard you're not planning to buy more cattle this month. Is that true?" Alvaro shouted from a distance.

"That's right, Alvaro, my friend," Xiaobaitu replied, "You know, our financial situation is very bad. The previous war drained our wealth, and we can no longer afford such large transactions. Perhaps when our financial situation improves, we will resume purchases."

"I see." Alvaro nodded, as if he had already known the situation. Indeed, he quickly continued, "Xiao, listen to me. You actually have a great fortune, a huge fortune. Not many people know this, but my family happens to know. There is a vast, lush cinnamon forest along the Atlantic near your Duck Lake. It's a staggering fortune, and you just need to develop it."

"Ah, Alvaro, it seems you've had your eye on our forest for a while," Xiaobaitu joked, "Well, I admit, it's a forest of gold. But first, our country doesn't have enough manpower to develop it, and second, cinnamon can only fetch a good price in Europe. The market in La Plata isn't big enough to provide us with sufficient profit. As you know, trade between the Eastern Republic and Europe has been interrupted for months and hasn't resumed. We can't determine how long it will take to restore these trade links. It could be a week, a month, half a year, or even longer. Therefore, I can't convince the executive committee to mobilize a large amount of manpower and resources to develop this wilderness. It's that simple, my friend. This month, we will buy some gunpowder, cotton, and wool, but that's it. Perhaps next month, when our funds are a bit more relaxed, we will resume purchases. You need to be patient."

"Xiao, our cattle have already been transported from distant Buenos Aires to Colonia. We can't wait indefinitely. But it's also not practical to transport the cattle back. I think we can temporarily sell the cattle to you on credit. Similarly, I have collected a large amount of wool from Buenos Aires, which I can also sell to you on credit," Alvaro calmly said, stunning everyone.

"What?!" Xiaobaitu was shocked, "Why such favorable terms? What do you want?"

"Simple. If you decide to develop that cinnamon forest, please inform me first, and grant my family exclusive trading rights for cinnamon in the La Plata and Chile regions," Alvaro looked into Xiaobaitu's eyes and said.

"Can you sell it in Chile?" Xiaobaitu was surprised, then laughed, "Alvaro, your family is more powerful than I imagined. However, I need to consult my superiors, as such large-scale development is not within my authority. But to be honest, within my power, I can give you a three-year trading monopoly. Also, I hope that all transactions in Colonia will be settled in the legal currency of the Eastern Republic of China, the 'yuan.' Any merchant carrying currencies like pesos, ducats, francs, pounds, florins, or rubles must exchange them into 'yuan' before trading."

"Deal!" Alvaro agreed readily.

Xiaobaitu also smiled. The chamber of commerce, representing the elite of the native-born whites of La Plata, monopolized almost all the trade in Colonia. Xiaobaitu had no doubt that Alvaro could fulfill his promise. Moreover, the 'yuan' was already popular among merchants due to its exquisite craftsmanship, high quality, and ease of calculation. Setting it as the sole settlement currency in Colonia was a natural choice.

For Lieutenant Xiaobaitu, who was sent by the army to manage the Eastern Republic of China's affairs in Colonia, this deal would significantly increase his standing in the executive committee. With the official exchange rate of 1:10 between the yuan and the real, for every 9-10 yuan worth of goods traded, the Eastern Republic of China would earn an additional 1 yuan from the mint. In November, the total trade volume in Colonia, due to the presence of many smugglers from other countries, reached a new high of over 30,000 yuan. This alone would add over 3,000 yuan to the treasury of the Eastern Republic of China each month, a significant achievement.

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