Chapter 341: New Terms

Lynch sat on the sofa in a room filled with light music. Opposite him was Governor Drag.

Besides the governor, several aides quietly approached Lynch.

Though such private meetings weren’t exactly illegal, they were risky and easily misunderstood. Neither Mr. Truman’s side nor the Nagaryll delegation cared.

The situation had grown complicated. After Preyton deployed the Gephra Royal Navy, his passive stance didn’t improve; it veered into unknown territory.

Within Gephra, discussions had begun about an inevitable naval war. Some even proposed a patriotic war on Nagaryll’s land against the Federation.

Those proposing this idea, like Lynch and his faction, were greedy for Nagaryll’s resources.

Whether or not a war broke out, the idea was to fight first. If victorious, they could recoup military expenses from the spoils. If not, Gephra’s imperial ambitions meant turning Nagaryll into a cash cow was easy enough.

This idea gained support within Gephra, as Nagaryll could restore lost wartime interests.

Still, hesitation remained over how strong the Federation really was.

They instinctively believed their navy was superior but had doubts—understandably, no one could guarantee victory before war’s outcome.

Gephra’s mindset was conflicted: eager to know Federation strength and covet Nagaryll’s resources, yet unwilling to drag itself into a prolonged war draining its limited capacity.

This indecision mirrored Nagaryll’s own predicament—small nations lack true sovereignty, forced to shift stance according to powerful states’ whims.

The room was silent. News from Nagaryll urged patience, but Drag and others were growing restless—this torment underscored their urgent need for change. Only by becoming strong could they stand without fear.

Drag, the main proponent of establishing ties with the Federation, now bore the responsibility of negotiation. Though Nagaryll’s government wanted to delay, the delegation had to consider its own interests.

Nagaryll wasn’t unified, though it appeared so.

For example, Governor Drag cared little about Nagaryll’s fate. His concern was how war would affect his family and the Magulana province.

As for others? Their survival was irrelevant.

Lacking contacts in Gephra, Drag had no communication base except Lynch.

“We and those present support diplomatic relations with the Federation,” Drag began. Others nodded, representing various provinces and districts.

He looked back at Lynch. “Before formal negotiations resume, we want to discuss what we can gain if a friendly, cooperative relationship is established.”

This was a show of good faith—already discussing post-establishment matters. Nothing more sincere than this.

It was also a reluctant choice—if forced to choose, this was preferable.

Compared to Preyton’s offer of higher profit shares and lower import prices, they still preferred ties with the Federation.

If not for Preyton’s Royal Navy presence, Nagaryll might already have sent its credentials.

Preyton’s company effectively controlled Nagaryll’s customs—subtly, without causing resentment—but the fact remained.

Regaining customs and receiving Federation technology support seemed a good deal.

Lynch shook his head slightly. “Our offer is the best it will get. And these terms…” He chuckled softly, “…may change because of your arrogance.”

Drag looked confused. “I don’t quite understand.”

Sometimes, when you give face, others mistake it for fear.

Lynch set down his glass. “Frankly, we and the Federation government are unhappy with your wavering stance. Some have taken advantage to stir trouble, putting the Federation in a difficult position—all because you didn’t stand firm.”

“All previous agreements are void. New terms will come, less generous than before.”

Watching Drag’s shifting expression and eyes, Lynch continued, “Between us, the Federation government now leans toward you refusing ties—so we can wage a revenge war with Gephra over Nagaryll’s seas and land.”

“You and your people—Nagaryll’s land, resources, everything—will ultimately be divided and controlled by the victor.”

“Your constant flip-flopping is infuriating, Governor. Truman and I are both tired of it.”

Though harsh, Drag didn’t react angrily—his face showed emotion but he controlled himself.

“I understand,” he said, making Lynch smile. Drag grasped the bitterness and the diplomatic stance shifts.

Ultimately, it was because Nagaryll lacked strength. They couldn’t do anything.

“I will try to persuade the delegation, but how can I convince them?” Drag asked, his tone steady despite Lynch’s pressure. Whether self-control or genuine, he endured.

Lynch thought for a moment. “If you’d held this attitude from the start, disputes wouldn’t have arisen. Preyton is just one man, a pirate merchant who represents no one—not a country.”

“When the Federation fleet destroys his last naval stronghold, his only fate is hanging as a pirate.”

Pausing, Lynch added, “What we’ve discussed won’t change much, though some details will.”

“First, Federation aid funds can only pay for Federation personnel, build factories and facilities we designate, and import approved goods and materials. They cannot be used elsewhere and must be fully supervised by us.”

This was much stricter than before—previously only half the funds were supervised and earmarked; now it was all.

But this change mattered little to Drag and the others.

They would receive only a small share of the profits; the majority would still belong to the central government, which, after all, remained the nominal highest authority of Nagaryll.

The others nodded in agreement with Lynch’s view without much discussion.

“Second,” Lynch held up two fingers, “more than seventy percent of the workers involved in building the factories and facilities we agreed on must be Federation citizens.”

“During production, Federation workers must make up at least thirty percent of the workforce.”

This condition was somewhat strict, but after consulting, Governor Drag and the others found it acceptable. Although they would have to pay wages to many Federation workers monthly, the money came from the Federation itself, so they suffered no real loss and naturally wouldn’t refuse.

Lynch smiled more. “Third, the Federation’s Sol must become the official legal currency of the Kingdom of Nagaryll.”

When Lynch made this third major demand, Governor Drag didn’t immediately agree. The group deliberated for a while, with Lynch closely watching their reactions.

Except for Drag and a younger governor or representative, most seemed indifferent.

Some even thought the proposal was good—after all, the Federation Sol was an internationally accepted currency, usable in many countries, unlike their own Valier, which was difficult to exchange at official rates anywhere.

Drag hadn’t yet grasped any hidden significance in the demand. He only instinctively suspected there might be a trap.

In truth, if it was a trap, it was more like a huge surprise.