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Chapter 60 - Trade War Plans, Free Port

The air in the new administrative building at Karl's Harbor, though still smelling of fresh-cut pine and damp earth, hummed with a different kind of electricity. It was late August of 1670, and Count João, his posture as commanding as the newly risen quays outside, stood before his most trusted lieutenants. 

Gathered around a large map of the Baltic were Elias Lindgren, the sharp-eyed manager of the Baltic Trade Company, and Dr. Henrik Karlsson, the meticulous manager behind the Stockholm Textile Company's groundbreaking operations. 

A stern-faced Major Erikssen, commander of the Swedish battalion, also attended, his presence a stark reminder of the venture's strategic weight. 

"Gentlemen," João began, his voice cutting through the soft murmur of the nearby river, "the foundations are laid. The harbor rises from the rock, the town takes root on the land. 

But this is merely the crucible. Now, the true alchemy begins. 

We are here to finalize the battle plan for the Baltic Trade Company, for the Stockholm Textile Company, and for the very core of Karl's Harbor." 

He gestured to Dr. Karlsson. 

"Dr. Karlsson, the textile operations are central to this. What is your assessment of our output and supply?" 

Dr. Karlsson adjusted his spectacles, a flicker of pride in his eyes. 

"Count, our looms in Stockholm are performing beyond expectation. From September to April, operating 22 days a month, we project an output of approximately 800,000 meters of fabric. This is a conservative estimate, accounting for our standard 'two-thick' fabric. And yes, Count, to your standing order: a significant portion of this output will easily meet the stringent sail-standard specifications. Quality is paramount." 

He paused, then continued, 

"But the true genius, if I may say so, lies in the integration with our new town. Come winter, when the fields sleep and agricultural work ceases, our Polish, Swedish andother settlers will find year-round purpose. Raw flax and hemp, sourced directly by Master Lindgren's teams from the fertile plains of Russia and Livonia, will be distributed from our Karl's Harbor warehouses to every home. 

The town, Count, will transform into a vast, decentralized 'winter weaving playground.' Each family, invested not just in their new land but in our Company's interests, will become a vital loom in this great enterprise, boosting our overall textile output dramatically while ensuring loyalty and prosperity." 

João nodded, turning to Elias Lindgren. 

"Master Lindgren, this influx of fabric, combined with all our other commodities... how do we ensure it leaves our quays, and that the world's merchants flock here?" 

Lindgren, ever pragmatic, spread his hands over the map. "Count, our strategy is multifaceted. 

Firstly, the goods themselves are the bait. We will centralize what no other single port can offer in such quality and volume: 

The finest furs from Russia, bypassing traditional middlemen. Our very own, Stockholm textiles company, including the vital sail-standard canvas. Sweden's backbone: our exceptional iron and copper bars, mined and smelted with new efficiency. The unmatched ship timber, masts, and salvaged reclaimed wood, essential for every navy and merchant fleet in Europe. And, of course, the durable tools from our own forge." 

"Secondly," Lindgren continued, "we will market this fact aggressively across the continent. Our agents will visit London, Hamburg, Paris and more, broadcasting Karl's Harbor's advantages. We offer security, efficiency, and a direct source unlike any other." 

Major Erikssen interjected, his voice gravelly. 

"My battalion will ensure that security, Master Lindgren. No opportunistic pirate or envious rival will dare disrupt our operations. This is Swedish territory, and it is protected." 

João smiled. "Indeed, Major. And now, Master Lindgren, to the delicate part. Our competition. The Dutch." 

Lindgren gave a slight, knowing smirk. 

"Ah, the Amsterdammer. Some may question our open arms, Count. But consider this: they possess the largest, most efficient merchant fleet in Europe. To rapidly establish Karl's Harbor as a major hub, we need their distribution network. Let them come. Let them see the quality, the volume, the seamless operation. Let them carry our goods, sourced from our port, to their markets. They will unknowingly sow the seeds of their own obsolescence, making our products ubiquitous even as we build the capacity to one day challenge their very control." 

"And it's not just the Dutch," Lindgren added, his gaze sweeping across the table. "We will extend a particular welcome to the French Royal North Company. France, with Colbert, hungers for direct access to Baltic resources, seeking to diminish its reliance on Dutch shipping. Karl's Harbor offers precisely that, making us a vital partner in their own imperial ambitions." 

"And any other who can compete with the Dutch in the Channel," João finished, his eyes meeting Lindgren's. "The English. We will court them aggressively. Let the great powers vie for our commodities. Let them fund our growth while we build the alternative." 

"For this first year," João concluded, rising to his feet, "the Baltic Trade Company's immediate goal is to enact the feasibility of this grand scheme. 

Every transaction, every shipment, every satisfied merchant must prove the overwhelming economic logic of Karl's Harbor. This harbor, gentlemen, is not merely a port or a town. It is a declaration. 

A declaration that Sweden, and the Sith Company, will forge their own destiny, not just in wealth, but also in power." 

The resolute silence that followed was heavy with understanding. 

The battle lines were drawn, not with cannons, but with contracts, timber, and cloth. The war for the Baltic's future had begun. 

 

"Master Lindgren," João said, his gaze shifting to the map, tracing the lines of the Baltic. 

"We have detailed how goods will leave Karl's Harbor, how we will entice the fleets of Europe. But how do we ensure these goods arrive? 

What are the Baltic Trade Company's own capabilities for carrying the furs from Russia, the flax from Livonia, the iron and timber from Sweden's interior, to our quays?" 

Elias Lindgren stepped forward, a confident glint in his eye. "Count, we anticipated this. The feasibility of the hub rests as much on consistent inbound supply as it does on efficient outbound distribution. The Baltic Trade Company will not rely solely on the goodwill or capacity of others for our vital raw materials and domestic products." 

He pointed to various points on the map. "For the long-distance hauls, especially the furs from Russia and the critical flax and hemp from Livonia, the BTC has commissioned a core fleet of sturdy, purpose-built merchant vessels. These are not the largest ships on the Baltic, perhaps, but they are modern, efficient for their size, and importantly, they are ours. They are designed for reliable and swift passage across these northern waters, capable of navigating our own Swedish archipelago to reach remote collection points if necessary." 

"Their crews," Lindgren continued, "are loyal, well-paid, and disciplined, trained to the Sith Company's rigorous standards for loading, cargo management, and navigation. We expect them to establish unparalleled reliability on these routes within the first year." 

He then traced lines inland on the Swedish map. "For our domestic produce – the iron and copper from Bergslagen, the vast timbers from the forests – our approach adapts to Sweden's geography. We've invested heavily in establishing efficient riverine and land transport networks. Barges on the major waterways will carry metals and cut timber to nearest coastal collection points, where our smaller, more nimble coastal vessels will then ferry them directly to Karl's Harbor. For regions not served by water, we've organized extensive teams of ox-carts and wagons, ensuring a steady, protected flow." 

"The emphasis, Count, is on control and consistency," Lindgren concluded. "While we welcome other carriers to export from Karl's Harbor, the initial, crucial phase of bringing these goods into our hub rests firmly within the BTC's own, dedicated capabilities. This guarantees the quality of incoming cargo, the predictability of supply, and fundamentally, the proof that Karl's Harbor can indeed centralize and manage a supply chain of this unprecedented complexity." 

João nodded, a satisfied expression on his face. "Excellent, Master Lindgren. Reliability. And patience." 

" Where are the others?" 

" Most are in vacations or on some trip in the baltic " 

" Seems like they found what they wanted at laugh tale... but i did not..." sigh.... 

" Sir ?" 

" Ha! it's a trick, a hat trick, " Joao said while moving his hat in a salute motion... " Well, have france, england and other countries from more south been invited to trade in Karls'Harbor ?" 

" Yes, france was the most receptive,especially with their " Compagnie Royale du Nord", despite thatsweden is at theocre of the inquisition scandal, england is interested, and mostly: whatever country who can send some merchantships will do so, as long as it's hinders the dutch overwelming advantage in trade, they want to participate" 

" Ha ....those dutch, they are quite formidable, the best strategic position in europe, and they used it, but some of their methods have transformed the mutual win win trade, in a ... we are the center of the world !!- using a pseudo dutch accent intonation- You know....;well not like they won't put pressure on us even in karl's harbor, but we have some funds, to maintain a 3 years total monopoly over iron ingots, and that..... is to be comprehended by them ... " 

" It would represent quite the warehouses ...." 

" Yeah but it's the most important part, due to dutch intervention, the iron ingots from sweden are so.. Costly to everyone: buying from the dutch, not the swedish..., anyways, except for religious aspect, they all look for casus belli to hinder the dutch trade almost monopoly on too much ressources..." 

" Well, may be not that aggressive of an approach, sir, I think sweden need to be ready first" 

" Of course , Major, if need be, I will take the loss, and sweden can still continue to devellop, not like we currently have the possibility to defy the dutch navy anyways ...., the important part is that we work with each other in that endaevor, that can decide the future of sweden,,. while even if they lose some market parts, it wouldn't be such a hassle to the dutch " 

The little council paused for a moment, before Joao continued:" 

" Ha and what about the ... other textile companies? The model's already effective as far as i know, do nobles, wealthy merchants or guilds got interested ?" 

" It seems guilds are quite reluctant, even with the structure proposed, and the nobles even more, precisely because of the shareholding structure" 

" sigh... they uncovered a major scandal inside the inquisition, who was preaching order without any discpline, and still they more or less have the same mindset ? Sigh .. i definitly did not find what i was looking for in laugh tale...." 

" What is laugh tale ?" 

" Ha it's a trick,a hat trick " like a parrot saluting again with his hat 

"...." 

" Héhéhéhé, it's something with my team all of them seems to have found what they looked for ..." 

"....." 

' Well ok: i will narrate a story ,i am sure those english engineers can achieve those kind of ships..: 

Imagine : 

 

At the heart of Karl's Harbor's bustling port, a "Swedish fluyt" is preparing to leave the quay, loaded with precious cargo en route to the great Baltic trade routes. 

On board, the sailors are busy preparing the mainmast sail, that imposing main sail that captures the wind's force and propels the ship at high speed. But this fluyt is not one of those miserable Dutch fluyts, no, it's a Swedish fluyt: it is equipped with an ingenious and innovative system: the tacking system, so common in the Baltic, finally mastered after years of tacking right and left, and..." ahem, before resuming his marvelous story. 

"Suspended from its stay, the main sail looks classic, wide and square-rigged like traditional sails, but its frame conceals a rare possibility. High up on the mast, the main ropes – the halyards and reefs – are skillfully connected by a network of pulleys, forming a dual-control system. 

When the wind stiffens or a precise maneuver becomes necessary, the master sailmaker springs into action. 

With a steady hand, he detaches a specific portion of the ropes that allows the controlled lowering of a section of the main sail. 

Slowly, this upper part slumps down, folding the large surface into a new shape. Simultaneously, a second set of ropes and pulleys, finely tensioned and prepared in advance, is pulled forward, re-erecting the lowered sail into a compact, streamlined triangular sail. 

This triangular sail, more efficient against headwinds or unstable winds, offers increased maneuverability to the Swedish fluyt. 

Where the square main sail excels in following winds, this "integral jib" allows the ship to advance directly into the wind without hindrance, reducing the force on the masts and increasing stability. 

Added to this is an innovation below the waterline, or on one of the gunports: removable leeboards, fastened by sturdy attachments, which the crew can lower or raise depending on the situation. 

They act like lateral keels, preventing the ship from drifting sideways under the effect of the wind, and improving its ability to maintain a precise course. 

In calm waters, these leeboards can be raised to reduce the draft and allow the fluyt to venture into narrower passages or shallow ports. 

So there you have it, gentlemen, the Swedish fluyt, with its modular sail and adjustable leeboards, offers exceptional adaptability, capable of both transporting heavy cargo over long distances and maneuvering agilely in the changing winds of the Baltic. This system offers a definite advantage, in my opinion, for all merchant ships in the Baltic." 

"A Swedish fluyt... Hmm, that sounds interesting. Is it already under construction?" 

"Ahem, no. For now, it's just the idea... but if we manage to get a fully functional vessel, then these ships will truly be able to compete with Dutch ships in the Baltic, and even in the North Sea," he said, before continuing his speech. 

"So the whole strategy seems to me like an almost military organization; that's what we need to fight with Holland. I'm going to consult the naval engineer about the feasibility of such a ship; the first shipyard to launch should be ready soon," said João, leaving abruptly with his idea like a thief. 

 

Somewhere in France, August 1670 

"Oh no!!!" 

"It's just a mini ship of the line!" 

"A mini ship of the line that doesn't even have broadside cannons!!!" 

"Yes, yes, it's a practical icebreaker for urgent trade in the north. Ah... it's not too difficult for a naval engineer of your caliber, is it?" 

"No, but seriously: what do you hope to do with that? Three cannons at the front, under some kind of thick plank, and 80cm thick hull ? First, I need a bigger sail for it to have at least some semblance of speed... and then in the Baltic?" 

"Ah, speaking of that, a possible partial lowering of part of the main sail would be interesting." 

"What???" 

"Well, the wind often blows from the west. When I'm in Riga, I don't want to have to tack all the way back, or at least less. So, a partial lowering of the sail to make it gaff-rigged? I mean, triangular." 

"Oh, you could make a technical effort when you speak, after all, you have experience!!" 

"Ah, when I met Molière, he had a lot more... sympathy..." 

"...You met Molière? Ah, a coincidence, nothing more." 

"So, you want a miniature warship, but for what exactly?" 

"For icebreaking." 

The naval engineer looked Luis straight in the eyes, squinting, as if saying: "Oh, come on..." 

"Oh, I swear it's a surprise." 

"Another attempt to make a boarding ship, hmm... In any case, construction has already begun." 

"So, about the sail?" 

"A few more pulleys and a few ropes, and boom, it's done. That's the easy part. However, the crew will need to know how to operate them, I'm warning you..." 

"And for boarding?" 

"Given that I'm building it, its troop-carrying capacity, its structural stability... the only limit is the state of the sea. But no worries about taking a few full broadsides without sinking. However, the design isn't made for that kind of possibility to happen easily, especially with this sail change; it will increase maneuverability, perhaps even allow it to slip through enemy lines and board anyway... The only limit is the state of the sea; too rough and it's unusable unless you have an exceptional captain at the helm..." 

"We have that, we have at least 10 like that right now." 

"10? Not eleven?" 

"Oh, you know them?" 

"Who doesn't know the 11 captains who gave the VOC (Dutch East India Company) a beating in the Indies?" 

"That was almost 10 years ago, you know?" 

"Maybe 10 years, but still, it's like 'De Ruyter'; one or two daring battles, and you're etched into the history books... like me if this ship works. Anyway, it will be finished by the beginning of next year. If you want more, it might be problematic. Our order book is less full now, but royal commissions could resume quite quickly." 

"I understand," said Luis. 

 

 

______ 

 

September 1670 

Request for "Free Port" Privileges from the Swedish Crown 

 

To His Royal Majesty's Most Illustrious Regency Council, 

Representing His Majesty King Charles XI, by the Grace of God, King of Sweden, of the Goths and Wends, Grand Prince of Finland, Duke of Estonia, Karelia, Bremen, Verden, Stettin, Pomerania, Kashubia and Wendia, Prince of Rügen, Lord of Ingria and Wismar, and also Count Palatine of the Rhine, Duke of Bavaria, Jülich, Cleves and Berg, etc., etc. 

From Count João de carrasca, Governor of Karl's Harbor. 

Karl's Harbor, 29 August 1670 

Subject: Proposal for Granting Karl's Harbor "Free Port" Privileges to Secure Swedish Economic Supremacy in the Baltic 

Your Illustrious Councilors, 

I write to you today from Karl's Harbor, a nascent but strategically vital outpost, now bustling with the promise of Sweden's future prosperity. The foundations of a thriving port are laid, and the vibrant spirit of commerce already stirs among its new populace. 

To accelerate Karl's Harbor's as the unrivaled mercantile hub of the Baltic, and thereby significantly augment the Crown's revenues and influence, I humbly propose the granting of "Free Port" privileges. 

This status would entail a substantial reduction, from traditional customs duties and excises on goods entering and departing Karl's Harbor. 

The benefits of such a bold measure are manifold and immediate: 

Unleashing Commerce: By lowering the cost of trade, Karl's Harbor would become an irresistible magnet for merchants from all corners of Europe – particularly those currently reliant on the Dutch. It would allow our own Swedish materials, such as iron, copper, and timber, along with the high-quality textiles from Stockholm and our new decentralized weaving operations, to reach international markets at an unmatched competitive price. Challenging Dutch Dominance: The Dutch Republic, through its overwhelming mercantile efficiency, currently monopolizes too much of the Baltic trade. A free port at Karl's Harbor would provide a crucial alternative, fostering direct trade routes that circumvent Dutch intermediaries. This strategic move would incrementally erode their control, allowing Swedish goods to command greater profits for our own merchants and the Crown. Rapid Population Growth and Development: The allure of reduced taxation would draw skilled laborers, craftsmen, and trading families to Karl's Harbor at an accelerated pace, ensuring the rapid development of the town and its infrastructure without the need for extensive Crown investment. A thriving population means increased local consumption and, eventually, a broader tax base. Strategic Rapprochement: As we seek to draw merchants from France (like the Compagnie Royale du Nord) and England, offering preferential tax treatment would cement these crucial relationships, aligning their economic interests with Sweden's strategic goals and fostering alliances against common commercial rivals. 

The precedent set by successful historical models, such as Danzig's privileged status, clearly demonstrates the immense economic vitality unleashed by such policies. 

While there may be an initial reduction in direct customs revenue from Karl's Harbor itself, this would be swiftly and overwhelmingly offset by: 

Increased volume of trade: More goods moving means more profits for Swedish merchants and indirect taxes elsewhere. Strengthened Swedish industries: Our own mining, timber, and textile sectors would flourish with improved market access. Enhanced national prestige and power: A major trading hub directly in Swedish control translates into greater political leverage in Europe. 

I am prepared to present a detailed financial projection to demonstrate the long-term profitability and strategic necessity of this endeavor. Granting Karl's Harbor "Free Port" status is not merely a fiscal adjustment; it is an act of economic warfare that will secure Sweden's prosperity and power for generations to come. 

I await your Illustrious Council's most judicious consideration of this vital matter. 

Respectfully and Loyally, 

Count João 

Governor of Karl's Harbor 

After reading the correspondance, like all the regency council, Hedvig Eleonora de Holstein-Gottorpturn to her son 

" What do you think about this proposal Karl ? ". 

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