[1861] - El Reino de España

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The State of the Kingdom of Spain​

 

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History of the Kingdom of Spain (1861- )​

 

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The Government of Spain

Leopoldo O’Donnell y Jorris, 1st Duke of Tetuan
Prime Minister of Spain, Minister of War

Pedro Salaverría Charitu, Minister of Economy and Finance (Unión Liberal)
Saturnino Calderón de la Barca y Collantes, Minister of State (Unión Liberal)
Santiago Fernández Negrete, Minister of Justice (Unión Liberal)
José de Posada Herrera, Minister of the Interior (Unión Liberal)
Rafael de Bustos y Castilla-Portugal, Minister of Public Works and Transport (Unión Liberal)

The Political Parties of Spain:

Partido Moderato (Moderate Party) - Liberal Conservativism, Centre-left
Partido Progresista (Progressive Party) - Social Liberalism, Centre-right
Unión Liberal (Liberal Union) - Royalism, Liberalism, Centre​

 

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Ministry of War​

 

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Ministry of State

Ambassadors of Spain:

Leopoldo Augusto de Cueto, 1st Marquis of Valmar - Ambassador to Austria
Alejandro Mon y Menéndez - Ambassador to France
Narciso García-Loygorri - Ambassador to Russia
Luis González-Bravo y López de Arjona - Ambassador to the United Kingdom

Treaties in Effect:

The Iberian Economic Cooperation Treaty (Signed here)

Correspondences between Spain and Foreign Powers:

The Empire of France
1861: (From the French Minister of Foreign Affairs, Reply)
1861: (From the French Minister of Foreign Affairs, Reply)

The United Kingdom
1861: (From the British Foreign Secretary)
1861: (To the British Foreign Secretary)

The Kingdom of Prussia
1861: (To the King of Prussia)

The United Mexican States
1861: (From the Acting President of Mexico)

The Kingdom of Portugal
1861: (From the Portuguese Foreign Minister, Reply)​

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Reserve

 

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Reserve

 

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The Spanish Embassy is now open to foreign dignitaries​

 

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A Letter from acting Mexican President Benito Juarez​

It is with my deepest apologies that I must announce that any interest we are paying towards loans made from your country will be cancelled. Our country is ravaged by Civil War and funds must be devoted elsewhere so that the Conservatives can be defeated. We hope that you understand.

 

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Spoiler: Private communiqué to the Spanish Foreign Office from Édouard Thouvenel, French Minister of Foreign Affairs

I have received worrying correspondence from Mexico of their government‘s intent to halt, if not cancel, their payments to European interests. Knowing that both our governments and the British would be affected, I have been entrusted to seek out a unified response to this issue.

 

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A letter is passed from the foreign office into the Italian court, intending to provide the inclusive steps necessary for Italian support.

Spoiler: Reply to the French ambassado from the Foreign Secretary.

Mr. Ambassador,

The Prime Minister is of a similar mind regarding the recent incident with British credit to the Mexican government. We understand that the governments of France and Spain are occupied with identical concerns; therefore, we will subscribe to a joint-proposition to the Mexican government, with strict but reasonable terms to restore fiscal confidence in Mexican debt. I have been in conversation with the Chancellor of the Exchequer, Mr. Gladstone, and he is in agreement; the sovereign intake must be reproduced to European investors.

Sincerely,
John Russell, 1st Earl Russell, Secretary of State for Foreign Affairs

 

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Minutes from Prime Minister Leopoldo O’Donnell’s Cabinet Meeting
(Dated: March 6, 1861)

~ START OF TRANSCRIPT ~​

Prime Minister: Alright, now. If everyone is ready, we can get started.

Saturnino Calderón de la Barca: Sir, I would like to begin by addressing the messages the Ministry of State has received from both the Mexicans and our friends in France and Britain. I know have there have been some rumors concerning these messages circulated by certain individuals in recent days, and I just wanted to clear –

Salaverría: So it is true? They have declared all their debts to be forfeit? Their debts to all the major European powers, including us?

Calderón: Yes, it is true. However, we are working with France and –

Salaverría: This is outrageous! The gall of these Mexicans, to simply brush aside the great debt they owe to us as if it were a trifle! And in this time of need! Mr. Prime Minister, sir, as I am sure I have no need to remind you, our treasury – ”

PM: If you are so sure you do not need to remind me, then please refrain from doing so. I am quite aware of our economic situation, Mr. Salaverría. As Minister of Finance I am sure your analysis of the financial importance of the Mexican letter is pertinent, but I’d like hear our Foreign Minister’s thoughts on its political significance first.

Salaverría: Yes, yes, of course. My apologies.

Calderón: As I was saying, we are at present working with the French and British to produce an official, unified response to the Mexican government’s declaration. We’ve made steady progress, and I am confident that a draft of a document shall be produced relatively soon – a document that will accurately reflect Spain’s interests, as well as those of the French and British.

PM: Excellent. If there is one good thing that has resulted from this, it is that we can continue to work with our esteemed European friends and play a role on the international stage … in spite of our present difficulties domestically. Speaking of which, I would be most interested to hear your thoughts on the matter, Mr. Salaverría. What shall this mean for our kingdom’s finances?

Salaverría: Nothing good, I am afraid. Our income is improved over last year, yes, but not by enough – and especially if things like these keep happening. First we have the disaster with the grain shipments, now countries are refusing to pay back their debts to us … it is worrying. Fortunately, Mexico is nowhere near our most important debtor, and I predict that this blow will be softened by a slight lowering our tariffs – which I loathe to do, of course, but desperate times call for desperate measures. However, we must better protect the few sources of significant income that remain to us. If we were to slip into bankruptcy, the effects would be … beyond disastrous.

José de Posada Herrera: I think a lowering of our tariffs would be wise regardless, Minister. I have been consulting with a few friends of mine who are experts on the subject, and their judgement was not flattering. They tell me that these tariffs are staggering our economic recovery, not assisting it as you claim.

Salaverría: I beg your pardon? I am the Minister of Finance and Economy, sir, not you. I personally instituted those tariffs, sir – I will not have them challenged!

Herrera: Well, I’m challenging them. Mr. Prime Minister, I have been hearing disturbing news from our country’s east. Despite the close availability of cheap Italian grain, it appears that due to the high tariffs instituted by Mr. Salaverría domestic imports have become almost impossible. As a result, the eastern provinces have been forced to pay high costs for grain transported all the way across the peninsula. I would opine that this beneficial to the economic prosperity of the people of Spain.

PM: Is this true, Mr. Salaverría?

Salaverría: I have heard … similar news from my tax agents, Mr. Prime Minister, but I assure you that these high tariffs are for the best. While there may be some trouble in the short term, it is the only long-term solution to our current crisis. We cannot allow foreign competitors to dominate us in our home markets, as the British have already done with our textile industry.

PM: Mr. Herrera, thank you for this information – it has proved most enlightening to me, and to the Queen too I suspect. Mr. Salaverría, while I agree with portions of your argument, I must ask you to significantly lower the tariffs you have put in place. While some are needed to protect our own businesses, it is pointless if these businesses fail because the people have no money to spend.

Salaverría: … Of course, Mr. Prime Minister. I will do as you say.

PM: Now, I’m famished. Anyone interested in joining me for lunch in the gardens? It's such a beautiful day.

~ END OF TRANSCRIPT ~​

 

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Official Statement from the Portuguese Foreign Ministry​

Dom Pedro V has requested that the country of his grandfather and the country of his father become closer economically and diplomatically. His Majesty has suggested to the Portuguese government that they make attempts to create good economic and diplomatic relations with the Kingdom of Spain. The Portuguese government has approved the following treaty to be presented to the Spanish government:

The Iberian Economic Cooperation Treaty​

I. The Kingdom of Spain and Portugal will be in an alliance with each other, to protect each other from foreign threats, and to expand economic investment in both countries.

II. An open border will be declared on the border of Portugal and Spain, allowing citizens of both countries to move freely between each country on the Iberian Peninsular, allowing Portuguese to find work in Spain, and Spaniards to find work in Portugal.

III. Spanish investors will be allowed to invest their money in Portuguese industry, and Portuguese investors may invest in Spanish industry.

IV. Spain will get be able to invest in the Crown Colonies of Portugal, including Angola, Mozambique, East Timor, and Macao. Portugal will be able to invest in the Crown Colonies of Spain, including Spanish Caribbean, and the Philippines.

V. Spanish Ships may freely dock in Portuguese Ports, while Portuguese Ships may freely dock in Spanish Ports.

[X] - His Most Faithful Majesty Dom Pedro V, The King of Portugal and the Algarves, of either side of the sea in Africa, Lord of Guinea and of Conquest, Navigation and Commerce of Ethiopia, Arabia, Persia and India, etc.

 

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Official Statement from the Portuguese Foreign Ministry​

Dom Pedro V has requested that the country of his grandfather and the country of his father become closer economically and diplomatically. His Majesty has suggested to the Portuguese government that they make attempts to create good economic and diplomatic relations with the Kingdom of Spain. The Portuguese government has approved the following treaty to be presented to the Spanish government:



[X] - His Most Faithful Majesty Dom Pedro V, The King of Portugal and the Algarves, of either side of the sea in Africa, Lord of Guinea and of Conquest, Navigation and Commerce of Ethiopia, Arabia, Persia and India, etc.

[X] - Her Majesty Isabella II, By the grace of God and the Constitution of the Spanish monarchy, Queen of the Spains

 

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Spoiler: Private communique, draft response to the Mexican government, copied to both the Spanish and English courts

The representatives of England, France and Spain on behalf of their government authorise the following:

Acknowledging that the United Mexican States has unilaterally declared its loans to the United Kingdom of Great Britain and Ireland, the Kingdom of Spain, and the Empire of France (hereafter referred to as the 'Allied Powers') as void the Allied Powers thus:

• That as a gesture of conciliation, expect that the previous declaration by acting President Juarez be rescinded, and the repayment of finances recommence after a period of 12 months, with all interest accrued within this period to be repaid upon its end.
  
• That if the above is not met, the Allied Powers reserve the right to occupy the ports of Mexico, with the aim that all customs income be redeemed by the Allied Powers to meet the obligations of Mexico pertaining to the financial claims of the Allied Powers.
  
• That none of the Allied Powers seek territorial, political or financial advantage from any operations that are a consequence of this treaty.
• That within all reason and ability, any operations that are a consequence of this treaty shall not impede or affect the maritime commerce of the Allied Powers or neutral states.
  
• That a commission of three men, one representing each of the Allied Powers, be empowered to enforce the financial claims of the Allied Powers and oversee the distribution of any and all reparations