Arc 46East Africa Enters the Great War

After the assassination of Archduke Ferdinand sparked a European war, East Africa used its industrial and commercial strength to secure German colonies, expand its influence, and supply the Central Powers. The arc leaves East African fleets promoting trade and arms abroad while businesses pursue wartime profits.

  • Bob and Li Laite tested radio sales, earned far more than factory wages, and resolved to grow their business.
  • Gavrilo shot Archduke Ferdinand in Sarajevo, but Juno subdued him and doctors saved the wounded archduke.
  • Ernst warned Archduke Ferdinand that the assassination could bring Russia into a war and revealed East Africa’s preparations to supply the European powers.
  • Franz chose to pressure Serbia before resorting to war, but Serbia rejected the ultimatum and Austria-Hungary declared war as other European powers entered the conflict.
  • Wilhelm II approved selling Germany’s overseas territories to East Africa for war materials, and Ernst took control of German Central Africa and the Pacific islands.
  • Potiorek hosted East African military observers, while East African officials prepared for instability in the Neretva region and Belgian refugees arrived in the Belgian Congo.
  • East African businesses pursued opportunities in the Belgian Congo, while John Liar described the country’s shipping, industrial capacity, and arms trade with the Central Powers.
  • The East African Navy sent a large fleet on a South American tour, and Rhodes and Paul discussed the profits and limits of Argentina’s wartime trade.
Chapters 1131–1155 Vol. 12 Read

Ch. 1131Hand-Built Radios

Bob assembled a working radio from factory components and planned to sell handmade radios with Li Laite, hoping to start a business instead of taking his assigned factory job. Li Laite urged caution, and Bob remained unhappy with his placement at a hemp textile mill.

  • Bob brought electronic components to Anthony Park and told Li Laite he had obtained them through his second uncle.
  • Bob assembled a working radio, and Li Laite suggested pricing the handmade radios below factory-made ones.
  • Bob asked Li Laite to join his small business, but Li Laite advised them to keep stable jobs while testing radio sales.
  • Bob explained that he disliked his assigned hemp textile mill and hoped to earn startup capital by selling radios.

Ch. 1132Startup Team

Bob persuaded Li Laite to test a radio-selling business, and their strong sales convinced them to pursue entrepreneurship. Their success reflected how East Africa’s New Economic Policy boosted private enterprise and industrial growth while also bringing unemployment and other manageable social problems.

  • Bob persuaded Li Laite to try selling radios with him, agreeing to review the results after three days.
  • Bob assembled radios overnight, and Li Laite sold them in Dar es Salaam city for prices well below those of market radios.
  • The pair sold eight radios in three days and earned far more than they would have from factory wages.
  • Bob and Li Laite resolved to grow their business, which would later become an electrical-appliance company.
  • Private businesses and foreign capital helped East Africa’s economy and industry grow, while market competition caused some state-owned enterprises to struggle and unemployment to emerge.
  • Ernst accepted the New Economic Policy’s side effects as manageable and valued its contribution to growth ahead of a future world war.

Ch. 1133The Beginning

In 1914, East Africa’s New Economic Policy took hold as Europe moved closer to war, with its leaders and people confident that any conflict would be brief. As East African merchants entered European markets to sell goods amid domestic overproduction, Europeans began encountering East Africans just before the continent plunged into war.

  • East Africa’s government established a New Economic Policy that combined planned economic guidance with market freedom.
  • An East African journalist warned that European leaders were steering the continent toward war, while Europeans broadly expected a quick victory.
  • Britain, France, and Germany remained confident in their strength and treated war as a route to national glory.
  • East African industry expanded rapidly, creating overproduction and prompting private merchants to seek overseas markets.
  • In 1914, East African merchants traveled to Europe, especially Germany and Slavic regions, to sell industrial goods.
  • European customers encountered East Africans in large numbers and learned more about East Africa as war drew near.

Ch. 1134Dancing on a Powder Keg

As Europe’s economic crisis and Serbian-Austro-Hungarian tensions worsened, Black Hand member Graves urged Gavrilo to retaliate against Austria-Hungary. The chapter left Gavrilo ready to attempt an assassination in Sarajevo during Archduke Ferdinand’s visit.

  • Economic hardship and Serbian nationalist agitation heightened tensions with Austria-Hungary over Bosnia and Herzegovina.
  • At the Karamon Beer Hall, Graves and other Black Hand members discussed Austria-Hungary’s military exercises with Gavrilo.
  • Gavrilo said Serbia could not accept the perceived humiliation, while Graves encouraged him to strike back.
  • Graves revealed that Archduke Ferdinand was visiting Sarajevo and proposed making him pay in blood.
  • Gavrilo agreed that the attack would demonstrate Serbian resolve.

Ch. 1135Sarajevo Streets

East African agents Roger Li and Hulot watched Archduke Ferdinand’s visit to Sarajevo and discussed the threat posed by the Black Hand. As Ferdinand’s motorcade reached a bend, assassin Gavrilo prepared to shoot, leaving the attack imminent.

  • Roger Li taught Hulot how to gather intelligence from newspapers, merchants, and public meeting places in Sarajevo.
  • Roger Li warned Hulot not to underestimate the Black Hand and told him to observe what happened as part of his internship.
  • Archduke Ferdinand rode through Sarajevo with his wife and Austro-Hungarian officials while armed Black Hand members watched from the crowd.
  • Gavrilo moved ahead to a bend where Ferdinand’s motorcade would slow down and positioned his hand on the gun’s trigger.

Ch. 1136Assassination Failed

Gavrilo and another Black Hand member attacked Archduke Ferdinand’s car in Sarajevo, but Ferdinand survived thanks to quick medical care and the car’s bulletproof protection. Juno captured Gavrilo, and Potiorek learned that Ferdinand’s life had been saved.

  • Gavrilo shot Ferdinand in the chest and fired two more shots at the car as another Black Hand member opened fire.
  • Juno struck Gavrilo with his rifle, disarmed him, and helped subdue him before he lost consciousness.
  • Potiorek sent Ferdinand and Sophie to a nearby hospital while he stayed behind to oversee the arrests.
  • Potiorek learned that Juno, an ethnic Chinese soldier from the Neretva River downstream valley region, had captured Gavrilo.
  • Doctors saved Ferdinand, whose bullet had missed his heart, and the car’s bulletproof protection prevented the other shots from injuring its passengers.

Ch. 1137Royal Family Deliberations

Ernst and his family discussed the survival of Archduke Franz Ferdinand after the Sarajevo assassination attempt and the likely fallout between Austria-Hungary and Serbia. Ernst warned that Austria-Hungary was poorly prepared for war, while his father-in-law doubted Serbia could withstand the empire’s superior resources.

  • Ernst read an East African intelligence report on the assassination attempt and kept quiet about the information East Africa had gathered beforehand.
  • Karina grieved for her cousin Franz, and Ernst and Archduke Ferdinand, Maximilian I, reassured her that the wounded archduke was expected to survive.
  • Archduke Ferdinand, Maximilian I, asked Ernst whether the attempt would worsen tensions between Austria-Hungary and Serbia.
  • Ernst predicted that tensions would be difficult to ease but argued that Austria-Hungary was unprepared for war and that Serbia’s battle-tested army could inflict serious losses.
  • Archduke Ferdinand, Maximilian I, countered that Serbia’s small population and weak economy would leave it unable to withstand Austria-Hungary’s greater national strength.

Ch. 1138Final Preparations

Ernst explained to Archduke Ferdinand why Russia would likely support Serbia if war broke out, then reviewed East Africa’s preparations to supply Europe with strategic goods. East Africa had stockpiled medical supplies, gas masks, and controlled drugs while taking on heavy debt, leaving its businesses dependent on a European war to repay their loans.

  • Ernst told Archduke Ferdinand that Russia’s ties to Serbia and ambitions in the Balkans made Russian intervention likely if Serbia fought the Austro-Hungarian Empire.
  • Ernst argued that conquering Serbia would burden the Austro-Hungarian Empire unless it resolved its ethnic problems.
  • Svit reported that East Africa had spent three years stockpiling war supplies at its ports for rapid shipment to Europe.
  • Svit described East Africa’s reserves of battlefield medical supplies and gas masks, along with its capacity to produce more for the warring European powers.
  • Ernst’s government had financed expanded production of controlled drugs, leaving East African firms and the state heavily indebted and reliant on war-driven exports to repay their loans.

Ch. 1139Internal Disputes Within the Austro-Hungarian Empire

Franz consulted his ministers and Crown Prince Rudolf on how to respond to Archduke Ferdinand’s assassination, while Conrad urged a forceful war against Serbia. Rudolf warned that the Empire was unprepared for a conflict that could draw in Russia and other powers, leaving Franz’s decision unresolved.

  • Franz asked his ministers what stance the Empire should take in negotiations with Serbia after Ferdinand’s assassination.
  • Conrad urged severe punishment for Serbia, arguing that it had funded the Black Hand and that war would defend the Empire’s dignity.
  • Rudolf argued that war might be necessary but required thorough preparation, citing Serbia’s experienced troops, Slavic support in Bosnia and Croatia, and the risk of international intervention.
  • Conrad said Germany’s guarantee would protect the Empire if Russia entered the war, but Rudolf warned that France would constrain Germany and that Russia could withstand both powers.
  • Rudolf stressed that the Empire’s limited military spending, weak reserves, ethnic divisions, and multiple potential fronts made a prolonged war with Russia especially dangerous.

Ch. 1140The Outbreak of World War I

Rudolf and Franz pushed the Austro-Hungarian Empire toward confronting Serbia, and the July Crisis escalated into a European war after Serbia refused the empire’s demands and Russia mobilized. As the great powers went to war, East Africa restarted its naval expansion and began negotiating with Germany to take over its overseas territories.

  • Rudolf argued that the empire should increase military spending and declare war on Serbia, while Franz chose to pressure Serbia first and leave war as a last resort.
  • Serbia’s military government rejected the Austro-Hungarian Empire’s demands, and Rudolf won concessions from Hungary by lobbying its government.
  • The Austro-Hungarian Empire delivered an ultimatum to Serbia, declared war on July 28, and was followed by Russia, Germany, France, and Britain entering the conflict.
  • East Africa restarted its Naval Expansion Plan and began looking toward German overseas territories as Germany’s ability to defend them diminished.
  • The East African Embassy in Germany opened discussions with the German government about taking over German Central Africa and the German Pacific Islands.

Ch. 1141Wilhelm II's Troubled Mind

Wilhelm II brooded over how his assurances had helped Austria-Hungary drag Germany into a war against Russia, France, and Britain, while East Africa refused to join Germany and proposed taking over its colonies. The German government weighed the proposal despite its anger, knowing the crisis left it little choice but to accept East Africa’s demands.

  • Wilhelm II blamed his careless assurances to Conrad for giving Austria-Hungary a blank check and binding Germany to war against three great powers.
  • Wilhelm II hoped Austria-Hungary would hold Russia back while Germany defeated France first.
  • Wilhelm II resented East Africa’s refusal to join Germany’s camp, though Germany depended on its resources and petroleum.
  • Wilhelm II was angered by East Africa’s proposal to take over German colonies, including German Central Africa, but recognized Germany might have to accept.
  • Wilhelm II asked the German government for its view of East Africa’s proposal, and Foreign Minister Artur condemned it as extortion.

Ch. 1142Territorial Transaction

Germany agreed to transfer its overseas colonies to East Africa in exchange for war supplies, deciding that securing East African support mattered more than retaining costly territories. Ambassador Burs offered fifty million Rheinland Shields for all the colonies, and the two sides moved toward signing the agreement.

  • Moltke persuaded German officials that trading overseas colonies for East African support was worthwhile, and Wilhelm II called Ambassador Burs to sign an agreement.
  • Burs affirmed East Africa’s friendly stance toward Germany and praised the Germanic ties between the two countries.
  • Wilhelm II told Burs that East Africa had to offer fair value for the colonies, and Burs proposed fifty million Rheinland Shields for all German overseas territories.
  • Burs argued that the colonies were difficult and unprofitable to develop, while Germany wanted payment in war materials.
  • Germany accepted East Africa’s proposal and required the purchase price to be supplied entirely as war materials.

Ch. 1143Disposition of the German Colonies

East Africa took over Germany's overseas colonies and planned how to govern German Central Africa and Togoland. Ernst left the officials with plans for rail expansion, strategic ports, and mass immigration to the new territories.

  • Germany's focus on the war left its overseas colonies vulnerable, and East Africa gained control of them.
  • Ernst ordered German Central Africa divided, with the former Gabon Colony incorporated into the homeland and Cameroon retained as a colony.
  • Ernst proposed developing the southern region first and extending the Northern Railway to connect East Africa's inland territories with the coast.
  • Ernst instructed officials to build Lomé into a military outpost and port serving East Africa's interests in the Gulf of Guinea.
  • Ernst set a goal of relocating one million people to Togoland, drawing immigrants from East Africa, Europe, and the Far East Empire.

Ch. 1144The Tricolor Falls

Ernst and the East African government discussed taking over Germany’s African and Pacific colonies, setting aside immigration plans while prioritizing local administration and strategic island garrisons. In Libreville, German rule ended as Governor Xavier and the colonial troops departed for the European war, leaving the territory to East Africa.

  • Hermann warned that wartime shipping demands made relocating a million immigrants to Togoland impractical, so Ernst postponed the immigration plan and called for establishing local rule.
  • Ernst and Svit discussed using Germany’s Pacific islands as footholds near Australia, and Ernst ordered a small troop presence on Nauru to protect its phosphate deposits.
  • The East African government considered German New Guinea and other Pacific possessions but lacked the resources to develop them.
  • In Libreville, the German flag was lowered and the Rhine Empire’s flag was raised as East Africa took control of German Central Africa.
  • Xavier asked Ander to treat the territory well, and then led more than sixteen hundred colonial troops aboard ships bound for Germany.

Ch. 1145Serbian Battlefield

East African officials debated how their modernizing army compared with the world’s military powers, while an East African observation group arrived at Austro-Hungarian headquarters to study the Serbian campaign. The group was left to observe command operations from behind the battlefield under Potiorek’s strict rules.

  • Ander asked Hlaid to compare East Africa’s army with the German and French armies, and Hlaid said he could not judge its current strength without modern combat experience.
  • Hlaid argued that East Africa’s military was developing in a positive direction and likely stood above other countries’ forces.
  • Wang Lade introduced the East African Military Observation Group to General Potiorek at the Austro-Hungarian camp.
  • Potiorek warned the young observers to remain at headquarters, obey orders, and avoid criticizing his command.
  • Potiorek confined the group to studying how he and his staff directed forces in the Serbian campaign.

Ch. 1146Learning

Potiorek directed Austro-Hungarian forces advancing through Serbia while teaching Wang Lade and the East African Military Observation Group about battlefield command. He invited the trainees to participate in the campaign as the war continued to go smoothly.

  • Potiorek ordered the 104th Infantry Brigade to capture Moka Village before ten o'clock and advance toward Zladipol.
  • Potiorek assured Crown Prince Rudolf that the Austro-Hungarian Army was advancing unimpeded and would reach Belgrade within three days.
  • Potiorek described the demands of battlefield command to Wang Lade, who said observing the war had taught him what classroom study could not.
  • Potiorek invited the East African Military Observation Group to participate in the war and offered to advise them based on their performance.

Ch. 1147Mostar Parliament

As the Austro-Hungarian Empire struggled against Serbia, Mostar’s parliament addressed the strain that incoming troops were placing on the city and planned to keep soldiers separate from civilians. Meanwhile, East Africa prepared the wider Neretva region for possible setbacks on the front.

  • After the Second Army Group was transferred away, Potiorek’s forces suffered reversals against Serbia, and the East African Military Observation Group withdrew with his headquarters.
  • Li Yue proposed wartime regulations and law-enforcement units to control soldiers and protect public order in Mostar.
  • Klaidovic supported Li Yue’s proposal and recommended building a barracks area north of Mostar Station.
  • The Mostar parliament approved plans for a military zone, temporary facilities, and a local body to negotiate with the military and handle disputes.
  • The city government began preparations the next day, while East Africa mobilized elsewhere in the Neretva region against the possibility of Austro-Hungarian defeat.

Ch. 1148Belgian Refugees

As war reached Belgium, Belgian Congo became a refuge for Belgians fleeing the fighting, with Black Point City serving as a major destination. Hermann Dekro reunited with his younger brother Hughes at the docks, where Hughes welcomed his family and described their new home.

  • Belgian Congo's economy and population grew after Belgium invested in the colony and relocated nearly 130,000 Belgians there between 1908 and 1913.
  • After the war began, Belgian families arrived in Black Point City seeking refuge.
  • Hughes Dekro found his brother Hermann at the docks and greeted Hermann's wife and three children.
  • Hermann was surprised by Hughes's muscular appearance and East African-style clothing.
  • Hughes told Hermann that Belgian Congo offered opportunities and might become as developed as Cabinda.

Ch. 1149Leaning Against East Africa's Big Tree Brings Cool Shade

Hughes welcomed Hermann’s family to Black Point and explained how East Africa’s growth had enriched the Belgian Congo and created opportunities for them. Hermann remained wary that East Africa might exploit Belgium’s wartime weakness, and the chapter left that concern unresolved.

  • Hughes took Hermann’s family by taxi to his residence, where Hermann was surprised by Black Point’s many automobiles.
  • Hughes explained that East Africa’s development and nearby cities like Cabinda and Kinshasa had benefited the Belgian Congo and made Black Point a prosperous place to work.
  • Hermann asked how closely East Africa was tied to the Belgian Congo, and Hughes described East African investment and a planned regional transport project that the war had halted.
  • Hermann told Hughes that Germany had occupied Brussels and threatened Antwerp, prompting his family to seek refuge in Black Point.
  • Hermann voiced his fear that East Africa might take advantage of Belgium’s weakness and seize influence in the Belgian Congo.

Ch. 1150Opportunities

Hughes reassured Hermann that Belgian Congo was safer than war-torn Belgium and explained how East African trade and investment were creating opportunities for the colony. With the Belgian Central Government unable to govern the Congo, the colony gained autonomy and pursued closer economic ties with East Africa, including a proposed railway.

  • Hughes told Hermann that Belgian Congo could not resist East Africa but would likely surrender quickly, and that the colony was safer than the Belgian homeland.
  • Hughes gave candy to Hermann's three sons and explained that goods and living costs in Belgian Congo differed from those in Europe.
  • Hughes described how East African trade and investment supported Belgian Congo's development.
  • After Brussels fell, Belgian Congo lost contact with the Belgian Central Government and its colonial government gained substantial autonomy.
  • East Africa discussed a railway route linking Cabinda City through Belgian Congo to Libreville, while refugees from Belgium brought potential capital and talent to the colony.

Ch. 1151Taking Advantage of Weakness

Philip planned to expand Carson Department Store from Cabinda into Belgian Congo while war disrupted European supplies and created new markets. He proposed a low-cost chain of sales outlets, focusing on towns and mining districts and making only limited investments in Black Point.

  • Philip argued that Belgium’s wartime trade disruptions made Belgian Congo an opportunity for Carson Department Store.
  • Leven warned that Belgian Congo’s sparse, scattered population made expansion risky, and Philip pointed to population growth and mining districts as promising markets.
  • Philip said Belgian Congo had few competitors and that local shoppers would welcome stores closer to home instead of traveling to Cabinda or Kinshasa.
  • Philip proposed shifting funds from domestic expansion, borrowing from a bank, and building a chain of small outlets rather than large supermarkets.
  • Philip planned two large supermarkets in Black Point but acknowledged that East African state-owned businesses already had a strong foothold there.

Ch. 1152Trade Boom

East Africa’s booming wartime trade strained its transport network as its merchant fleet and container system moved vast quantities of goods to Europe and other markets. John Liar reported that East Africa had become Germany’s leading supplier and had gained an early advantage over American businesses, while shipping and steel output continued to expand.

  • Companies from East Africa and nearby cities competed to enter the Belgian Congo market, which East Africa regarded as a minor opportunity.
  • John Liar reported that East Africa had more than five million tons of registered merchant shipping and that roughly thirteen million tons of global shipping supported its trade.
  • East African ships carried much of the trade between East Africa and the German territories, including wheat imports that helped cover Germany’s wartime food shortfall.
  • John Liar described pressure on East African ports and explained how standardized containers supported transport from ports toward German front lines.
  • East African military suppliers gained early business over unprepared American companies by providing abundant, reliable goods such as medical supplies.
  • East African steel production exceeded thirty million tons, placing it ahead of the United States and far above Germany.

Ch. 1153Arms Trade

John Liar explained how East Africa’s shipping network enabled its growing arms trade with the Central Powers, especially the Austro-Hungarian Empire, Bulgaria, and the Ottoman Empire. East Africa expected Bulgaria to enter the war and viewed its army as a showcase for East African weapons.

  • John Liar described East Africa’s large share of global merchant shipping and how its varied sea routes helped it evade British and French restrictions on arms exports.
  • John Liar explained that East Africa shipped weapons to the Central Powers through Ottoman ports in Iraq and the Baghdad Railway.
  • John Liar said the Austro-Hungarian Empire had ordered rifles, ammunition, and artillery because its military production could not keep up with its expanded army and mounting threats.
  • John Liar identified Bulgaria and the Ottoman Empire as stable arms customers and said Bulgaria had become East Africa’s third-largest weapons importer after Germany and the Austro-Hungarian Empire.
  • East Africa expected Bulgaria to join the war against Serbia and hoped its army would demonstrate the strength of East African weapons on the European battlefield.

Ch. 1154South America Again

John Liar argued that East Africa should exploit Europe’s war to expand its arms trade in markets beyond Europe. In October 1914, the East African Navy began a sweeping South American tour to assert East African influence against the United States, ending with Bolivia beyond its reach.

  • John Liar identified Asia, Africa, and Latin America as key arms markets while European powers were occupied, with the United States as East Africa’s main competitor.
  • East Africa’s exports benefited from its prior debts to Europe and America, which let trading partners pay with goods and grow dependent on East African products.
  • On October 1, 1914, the East African Navy launched a South American tour with five battleships, one battlecruiser, and ten cruisers.
  • East Africa deployed much of its Atlantic Fleet to protect trade and challenge the United States’ efforts to take over British and French influence in South America.
  • The fleet’s planned route covered coastal nations from Mexico to Argentina and included Paraguay via the Paraguay River, but Bolivia could not be visited because it was landlocked.

Ch. 1155Rhodes Company

Rhodes and his secretary Paul discussed Rhodes Company’s growing profits from wartime exports and Argentina’s limits as a trading power. Rhodes focused on securing orders and profits, leaving Argentina’s future uncertain.

  • Rhodes reviewed the company’s accounts and celebrated an eight percent increase in monthly profits.
  • Paul warned Rhodes that rising ranch prices and shipping costs were squeezing profits despite soaring European demand.
  • Rhodes lamented that Argentina could not trade freely with the Central Powers as the United States and East Africa could.
  • Paul argued that Argentina’s small population prevented it from becoming a world power, and Rhodes agreed that the company should prioritize earning money.
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