War Never Again #5: The Empire's Hidden Gold
In truth, there was more to the British consul not reporting back to his homeland than just thinking, "These bastards could use a loan, huh?"
First off, the consul couldn't wrap his head around why these poor Koreans looked so damn happy despite their poverty. Poor countries—or more precisely, poor people—have a certain vibe, a telltale look about them. Wretched, miserable, hungry, tormented, exhausted expressions and behaviors. It was a scene he often saw in Britain's factory districts, especially areas thick with Scottish dialects.
But these Koreans? They seemed genuinely thrilled about Korea's development, their faces lit up with pure happiness. As a consul, he couldn't conceptually grasp it. So he didn't report it home. What was he supposed to say? "We must teach these poverty-stricken Koreans about the world"? Sadly, the British consul failed to understand that humans are usually happy when their backs are warm and their bellies full. He came from a country where such simple joys were impossible. And he had no clue that well-fed, warm people often work even harder. Well, he was British, after all.
Truth be told, these curiosities were secondary. Just personal whims. The real question nagging him as consul to Korea was something else entirely. A classic British one, a predator's instinct: How much could he gouge the other side for? Valuation. That was it.
Britain had pressured Japan to join the gold standard while never slacking on intel gathering about them. Their special focus? Japan's overseas investments. Specifically, how Japan was freeloading on the global trade chain Britain had pioneered—siphoning wealth abroad without even joining the gold standard. They were tracking it closely. If Japan refused to join till the end, Britain planned to make them pay for the unauthorized ride first, then force them in.
But lately, something unexpected pinged on their radar: Daehan.
The consul's lingering suspicions about Korea solidified into certainty after reports from home. So he boldly sought out the Supreme Leader and cut straight to the chase.
"Your Excellency, is it really true that Daehan has no gold?"
"Of course. Is that all you're curious about?"
"Hardly. Take a look at this."
The document he handed over was a report stating that, since Joseon days, Daehan had leased land in Indonesia from the Dutch to build rubber plantations.
"Word from the Dutch is, payments were all in gold and silver. And on deferred terms."
"And just the other day, they say you paid up right on schedule—in gold—to the Dutch."
"Yes, that's correct."
"You really have no gold?"
"Yes, that's correct. As you see, the contract specifies payment in gold and silver. It's a hedge against shortages."
"You even recently forgave most of China's reparations."
We barely got anything anyway, for real.
"Is that so... But it doesn't add up. I distinctly heard Your Excellency state the exact amount of gold Daehan has available for the gold standard."
"Yet the total gold and silver owed to the Dutch in Indonesia—no, just the Dutch—is way more than that figure."
State-level plantations in Indonesia.
"Quite the large rubber plantations you've leased. By the gold amounts you mentioned, this isn't a normal contract."
Not Britain but the Dutch, not Japan but Korea, and not buying but leasing—that's why it took Britain so long to notice. If they hadn't been digging deep into Japan's overseas assets like this, they might never have spotted it.
The consul's mustache twitched with the certainty he'd landed a big one on this enigmatic Supreme Leader. His British instincts were firing on all cylinders.
"Hmm... You're right. But there's one flaw in that reasoning."
"What's that?"
"That money isn't Daehan's money."
"Pardon?"
(What, is he asking us to seize it or something?)
If so, this Korean would truly be a gift to British greed.
"It's the Empire's money. His Imperial Majesty's personal funds, amassed by ceding palace treasuries and all royal assets."
"In the East, the old 'king's land' ideology blurred private property lines for ages. I've been rectifying that since Joseon days—ceding domestic royal assets for compensation, and continuing to do so."
It was deeper than the consul expected.
"But as you know, in this modern age, gold and silver preserve value unlike land, but they're poor investment vehicles."
"So we've been converting royal assets into 'overseas investments' since Joseon times."
"Those rubber plantations you mentioned? They're royal assets. All profits revert to the royal house."
A structure even a Briton from a constitutional monarchy could grasp.
"In my view, private property must be respected. Especially not collateralizing the royal family's private holdings."
Damn, what a way to shut someone down without a leg to stand on.
The consul felt his momentum deflate. Reality hit hard. What could he do if it was private property? Denying property rights here would paint him in a terrible light—he knew it. A poor nation respecting its own royal property rights? Hard to argue against that.
Now he got how they'd pushed land reform—buying land with gold. That must've been the Supreme Leader's plan all along.
The issue was where that gold flowed next... Regrettably for Japan, the consul had a pretty good idea. And at this point, whether it actually flowed there didn't matter. This circumstantial evidence alone would justify Britain bashing Japan's head in if they balked at the gold standard.
Just that. But first, he needed confirmation from Korea.
The consul wrapped up the dull tale and pivoted to something more "constructive"—the big picture.
"I understand Your Excellency's position. We'll await instructions from home, but I doubt it'll come to what you fear."
"Thank you, Sir Arthur."
"However... As consul, and full negotiator for this matter, I still have questions about Korea."
"Ask away."
Sir Arthur stroked his mustache and spoke.
"Ahem... I've heard Korea's gold and silver outflows are quite severe."
"Gold's one thing, but silver's definitely bad. Getting worse by the day."
From Joseon to now, I'd always sold silver to Japan to buy industrialization. Silver's value only drops anyway. I knew it well, so outwardly I'd feign concern over outflows while quietly allowing it. Japan needed a thriving economy to hesitate before war, at least once. Plus, it tanked our trade balance on paper.
"So you're joining the gold standard hand-in-hand with Japan?"
Coming in hot, huh? Sharp.
If it wasn't an official answer he wanted, no issue.
"This is a matter of treaty between our two nations, still under discussion, so I can't officially say 'no'."
"Agreed. Just gauging intent. Our side worries it might be a 'secret pact' to boost bargaining power, as some voices claim."
What the hell 'worry'? Worry my ass.
"Home fears Daehan might fall too deeply under Japanese sway due to our gold standard demands."
"I understand the concern. But if a treaty happens, its terms will be equal—that I promise here."
"We're not after promises."
"?"
"If you need a Korea-Japan treaty, we can frame it as a 'Korea-Japan-Britain' treaty, giving Korea whatever weight you desire."
True to form as a meddlesome power, trying to stir the pot. Wedge between Korea and Japan, prevent Korea becoming Japan's lackey? Shift blame to Korea? Let Korea drag Britain in for diplomatic leverage over Japan? What benefit to Korea?
Korea could torpedo these talks anytime, any excuse. Bilateral treaty, after all. But with Britain involved, no backing out—referee's there. And if it pisses off Japan? Double loss.
My goal isn't rabid anti-Japan; it's making them chew the bullet for Greater East Asia Co-Prosperity.
But yeah. Rejecting British involvement outright looks bad diplomatically. On the surface, they're offering to "help" Korea.
Pure sabotage.
The textbook play here? "Sure sure, we'll see after elections." Brush it off.
But he's snuck in as full negotiator on a pretext, and I'm a dictator elected democratically. Checkmate. No pausing in chess—answer now.
The Supreme Leader pondered in that instant. If he dodged? Rejection. So accept the cup.
At least for now's Daehan: "Care for some fine new tea?"
"Of course, Your Excellency."
Just that. He'd already poisoned Japan. He knew it too well.
No need to rush, as always.
Japan's dream of community with Korea, advancing to China, Eurasia, India? Britain's meddling snuffed it early. Left with stagnant Korea market (sales suck), China boycott, new Southeast Asia (now importing raw materials). No future momentum—fatal for economy.
Public expecting boom? Boiling over.
"Korea betrayed Japan!"
"Korea rejected Japan's proposal(!). War—only war remains!"
Is this treaty—deformed single economy, currency, mutual defense—a shadow of the original proposal?
Japan's economy looked grim to any Japanese. Exit strategy? Korea only.
Failed. World-class saboteur summoned by Korea herself.
Result: In global downturn, Japan's stuck with gold standard—the downturn's root.
Like Theseus's ship: Not even the statue left.
But despite grim future and raging public, Japan's cabinet was ultra-cautious. Facing a bomb to defuse.
Britain—erstwhile patron—sabotaged. And per Britain, Korea demanded it? But Korea gained zilch.
Banks in Jeju/Okinawa, interest-free gold loan from Britain? Not received, borrowed—and not Korea-exclusive. Biggest demand, Korea-Japan mutual defense? Swapped for Britain's mutual independence guarantee.
Korea: Zilch gained, suddenly tied to Japan under Britain, buried in gold standard.
Wasn't this, per Ito, Korea's initiative? Why drag Britain in, turning it into toxic scrap paper?
Folks recalling Ito's initial flip started digging old quotes. Maybe Ito was right. Silent at head table now, but...
Japanese unearthing Ito's words—cabinet intellectuals—reached a conclusion.
'We have a Brit spy among us.'
Rabid public didn't know treaty details. Just "Korea-Japan brothers to great future."
But Britain's reaction? Knows exactly the goal—from opposite world side.
Bargaining via gold standard escape? Britain nailed it.
Only possible if cabinet leaked.
Even sans gold standard, better loose Korea-Japan ties with mutual checks—subservient gains? Western powers... Britain specifically. Others just Britain's deputies in East Asia.
Long silence. Navy modeling Royal Navy, cabinet chasing rice-dump industrialization like British bourgeois, army revving imperial engine like Britain, Korea-hawks. All mum.
Japan-Britain honeymoon no recent fling. Not one or two days as queen's handmaiden.
Pipelines exist. Someone snitched Korea's big decision to Britain.
Result: Korea threatened by Britain's big battleships.
Too plausible—chills all around. Smart folks here thought it. Instinctual.
Ito PM probably fretting, mouth shut. Pro-Britain label scary, and who's the spy?
Spy's goal? Escape current mess.
All eyes darted. Too much lost for mere "purposeful" insertion. Unless facing death tomorrow.
Most Korea-hawks backed economic community with Korea grandly.
Japan hadn't forgotten the fervor.
And the trapped faction knew. Furious public scooped elite cabinet whispers/thoughts.
'Imperial Army—no, Japan Army's the Brit spy.'
Japan's Korea-faction: Preemptively police internals first, post-Korea resolution.