Dissolution of the Russo-Austrian Alliance

Chapter 646: Dissolution of the Russo-Austrian Alliance

Choosing sides in diplomacy could sometimes be very simple. Ever since the British decided to support Chile, Peru and Bolivia had no choice but to seek backing from France and Austria.

International trade was only a minor issue. The South American countries were all very small at this time; if not for their abundant resources and the need to promote currency hegemony, the great powers would not have paid them any attention at all.

One only had to look at their populations: Chile had roughly 2.2 million people, Peru about 2.75 million, and Bolivia around 1.3 million.

With so few people, and all three being agricultural nations, it was obviously impossible to expect much of an internal market.

Chile was relatively prosperous, mainly thanks to nitrate exports, and possessed the strongest military of the three.

Peru had silver, but unfortunately silver prices had fallen year after year in recent years, and the Peruvian Government's purse had shriveled accordingly.

Bolivia could be said to be the most miserable. It had only just discovered nitrate deposits and enjoyed a few good years before war broke out.

Without question, none of the three countries could produce enormous war funds at once. Loans were unavoidable.

At Vienna Palace, Franz was reviewing a special loan. The debtor had generously offered the mineral resources of the Atacama Desert as collateral.

"From the current situation, how likely are Peru and Bolivia to win the war?"

Chief of the General Staff Albrecht replied, "Judging purely by their military strength on paper, the General Staff conducted a quantitative analysis based on such factors as the three countries' troop numbers, weaponry and equipment, training, past records, and logistical support capabilities.

"Their military strengths are respectively: Bolivia 1, Peru 1.8, Chile 2.1.

"In theory,