On March 22, 1872, the United Kingdom and Russia signed the Anglo-Russian Bilateral Trade Agreement, the Anglo-Russian Grain Mortgage Loan Agreement, and the Anglo-Russian Financial Mutual Trust Agreement...
Aside from not forming an alliance, the Tsarist Government's economic alignment with the British had become an established fact.
Under the treaties, the Russians had become part of the Pound Sterling-gold system, and the Pound Sterling's position as the dominant international currency was formally established.
In return, the British were to provide the Tsarist Government with £150 million in interest-free loans over the next five years, with the Russians repaying all debts in agricultural products.
Anyone with eyes could see that the so-called loans were merely a pretext. The loans issued each year happened to equal the value of the agricultural products exported by the Russians; in essence, it was simply a massive procurement contract.
It was merely that these agricultural products from Russia were cheaper, while the London Government had also waived import tariffs. Through low prices, they seized the markets of other countries exporting agricultural products to the United Kingdom.
Austria was the first to bear the brunt. As the world's largest exporter of agricultural products, Austria undoubtedly suffered the greatest losses. Of all the agricultural products imported by the British each year, 65 percent came from Austria. Now, this market could practically be declared gone.
"Free trade"—fine words to listen to, but anyone who took them seriously was doomed. The British shouted their slogans loud enough to shake the heavens, yet when concrete interests were involved, they cast them aside without hesitation.
If Austria wanted to hold on to its British market, agricultural prices would now have to be cut by at least half for it to stand a chance in the competition.
Affected by the Anglo-Russian treaties, international