Chapter 50

Chapter Fifty: Complications in Domestic Affairs

Now, regarding matters of import and export, a treaty has been established.

Next, the second point concerns the debt that the former Kingdom of Rocha owed to the Empire.

"Since the Rocha Kingdom has perished, there should be no need for the Empire to return what was lent, correct?"

"Absolutely not! The debts possessed by the former nation must be paid by the country that ruled over it. Otherwise, who would be willing to lend money to any nation?"

I glance briefly at Princess Parubela and the others. Princess Parubela maintains an oblivious expression, and Famiris wears an unsurprised look.

It seems that Funsaloya's words are considered commonplace in this world.

If that's the case, there's no other choice.

"As for the detailed amount, it wasn't written in the treaty, but how substantial is the debt?"

"Regarding that, it's all summarized here, please take a look."

Upon receiving and reading it, I felt dizzy from the enormous debt. Roughly estimated, it was nearly equal to one year's tax revenue of the former Kingdom of Rocha.

"The largest portion of this debt, called trade fees, what is it?"

"When the former Kingdom of Rocha engaged in trade with the Empire, it refers to the tariffs paid to the Empire for both imports and exports. It's calculated based on weight."

The former Kingdom of Rocha exported iron ore and weaponry while importing mainly foodstuffs from the Empire. Both were significantly heavy items.

To tax based on their weight seems like quite an unreasonable tariff.

"Could it be that this item also applies to trade with the Nonette Kingdom?"

"No. We haven't made any agreements with the Nonette Kingdom. This contract was established when the former Kingdom of Rocha entered an exclusive agreement with the Empire for weaponry."

"In other words, it's now expired, and it won't increase any further."

"Yes. However, since it's a debt, it accrues annual interest, so the amount will increase due to that."

"...What's the rate?"

"Compound interest, 30% annually. The Empire is generous, opting to add the interest all at once at the end of the year."

If it's all paid within this year, the interest won't increase, I see.

But is a 30% annual interest rate high or low? I'm not entirely sure. I understand that money accrued through interest can become substantial in the case of national debt, though.

"I understand the matter regarding the debt. Considering it won't be feasible to address this within a year, I assume it will span over several years."

"That's perfectly fine. In fact, it's quite admirable. Foolish kings or lords would burden their subjects to repay the debt all at once."

"Through increased taxation, I presume?"

"That's one way, but they would also sell off their subjects to obtain immediate cash."

"Sell them as slaves?"

"Of course not. A knightly nation wouldn't tolerate such behavior. However, the military and major trading companies are always in need of labor. They would gladly pay a reward if someone were to arrange individuals for them. Even if those individuals happened to be lords or kings."

Just a change in terminology from soldiers and apprentices to what is essentially slaves, I'm saying.

Yet, the noble cause appears to justify it, as neither of the two knights from the knightly nation raises any objections.

"Just to make it clear, I won't sell off the people from the Rocha region."

"Despite being a new lord, you have no attachment to your subjects?"

"I'd rather not incur people's resentment in exchange for a paltry sum."

I'm just an amateur who doesn't understand anything about managing territories, so I don't have the intention to establish a good government or believe that I can run things smoothly. However, I don't want to do things that would make people resent me.

Although there are times when it's emotionally difficult, being resented could potentially become a matter of life and death. Calculating pragmatically, my future life is more important than resolving the immediate financial and territorial debt problems.

"To repay the debt, we'll prepare roads to make transporting iron ore easier and furthermore, revitalize industries."

"Is the goal to mass-produce magical swords?"

"Magical weapons come with many challenges. Alongside research, I plan to create a market for regular weapons. For now, we need to establish communication with either the eastern or southern countries."

I've heard that the country to the east of the Rocha region is mostly covered in forests. Tools for logging, like axes and saws, would likely sell well there.

To the south is a desert region. The country there has a habit of defeating sand-dwelling monsters for food, so weapons should sell well.

One of the countries in the desert region is where my eldest sister, Sorerina, is married. I've heard rumors that her husband holds an important position in that country, so we might be able to negotiate favorably.

While I've made these calculations, whether they'll actually work out is uncertain.

"So, I understand the debt situation. I'm thinking of using the proceeds from selling iron ore to cover the interest."

"It's troublesome to keep repaying small amounts every time you buy iron ore. The interest accumulates at the end of the year—after the next winter—so it would be more helpful if you could repay more at that time."

"In that case, I'll make sure to set aside funds for repayment."

"After paying the wages of those mining iron ore, there wouldn't be enough to repay. Please take care to avoid such a situation."

As we exchange light banter, I sign the treaty. This decision determines that the enormous debt will fall on Nonette Kingdom—or rather, on my territory.

In any case, negotiations are concluded.

"Lord Funsleroya. Thank you for teaching me various things."

"Not at all. I have high hopes for Prince Millimos. I'm willing to go to great lengths for this much. While I'd like to stay longer, my schedule is packed, so please excuse me."

We shake hands, and Hunsleroya leaves the office in a hurry.

As I sit in the chair, I start planning what needs to be done.

"General Durba should set out on a journey to tighten the soldiers in various regions and check for any signs of rebellion. We also need to gather skilled blacksmiths to reproduce the iron patterns on the Empire's magical swords. Additionally, we must visit the countries to the east and south to pitch our tools and weapons. Oh, and we need to gather workers for road construction—no, using engineering troops might also be an option."

Murmuring to reinforce my plans, I stand up from the chair.

First, I need to give orders to General Durba, then request the management team of my territory to visit other countries for sales, and personally gather blacksmiths to learn about the magic technology possessed by Narnette Kingdom.

As I leave the office to fulfill my plans, Princess Parvera and Familis silently follow me. Their roles are to monitor me, so this behavior is natural, but it ends up dragging them around everywhere, making me feel a bit guilty.