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Chapter 555: Gold Exchange (4)

The ownership of the gold mine of Uzbekistan was finally transferred to the Kazak royal family. Strictly speaking, the Uzbek government and the royal family each held a three to seven stake of the mine. The stake purchase was 2.1 billion dollars. Since the Chinese government had offered 4.5 billion dollars for it, there was some difficulty convincing the Uzbek government as it wanted to receive an amount of money that was close to what the Chinese government offered.

However, because of the investment that Youngho brought from European countries and the United States, the Uzbek government did not insist to receive such a huge amount anymore. Moreover, having 30 percent of the mine stake could be more profitable for the Uzbek government in the future.

When the ownership of the gold mine was transferred to the royal family, the geological survey team led by Doctor Park Young-sun immediately wanted to see why China offered such a large amount of money. Also, without knowing the number of gold deposits, Youngho could not offer gold to the countries that were providing loans to Uzbekistan.

Whatever the annual production might be, the royal family would not sell 30 percent of its production but keep it in the royal family. At first, Youngho planned to pass all of the produced gold, but Eriksson convinced that he should hold at least 30 percent of the production.

“Your Highness, the 40 tons sold to Germany every year should also include the production of the Uzbek gold mine. You can’t offer more even if Germany asks for separate gold.”

“One of the reasons Germany is offering loans to Uzbekistan is to buy more gold. How can we ignore that? The German government must be looking forward to it.”

“The reserves and production there should be kept secret. We don’t have any reason to open it to the public. If you can be stern for a moment, soon, it’ll go away. Germany is lucky to be able to buy 40 tons of gold every year, and that’s enough. Would the German government insist and ruin its relationship to a stable supplier to get a couple more tons of gold? I don’t think so.”

“You seem to be crazy about gold much more than me, these days.”

“We also need to stock up on more gold. In the next few years, there will be a financial crisis that we’ve never experienced before. We have to be prepared for that.”

If Eriksson was making such a fuss, economists and governments of other countries must also know about it. Developing countries would not be able to prepare because they could not afford to buy gold, but Russia, China, and other developed countries were preemptively collecting gold for such a crisis.

“We have only resources to trust. I’m afraid the new era is coming in which resources will become weapons. In particular, if the key currency collapses, gold may become a means of payment. That’s why we need to develop the gold mine in Kyrgyzstan as well.”

“I’m scared to hear that. Are you saying that the gold we produce now alone is not enough for us?”

“The royal gold holdings are enough, but we need to increase the Central Bank’s gold reserves further.”

Kazakhstan had 260 tons of gold, and it was an overwhelming amount for its size of economy. However, if President Nazarbayev had not stolen gold bars, there would have more than 700 tons of gold.

Those gold bars were now under the custody of the royal family. 700 tons was equivalent to Japan’s gold holdings, which was the world’s eighth-largest gold holder.

Kazakhstan’s gold holdings ranked 21st in the world with 260 tons of gold. Youngho was puzzled to hear that such an amount was not enough.

“We’ve got strong gold reserves compared to our foreign exchange reserves. Why do you say that it is not enough?”

“Over the next few years, our economy will grow three times more than what it is now. We should be prepared for that.”

“Shouldn’t we reduce the amount of gold sold to Germany, then?”

“Exporting gold to Germany is also helpful for our country. Our gold trade gives us a chance to learn about advanced technology and culture in Germany. Furthermore, we can possibly make a currency swap with Germany. Germany would be willing to do so with us because there are only a few countries in the world with an annual production of nearly 200 tons of gold.”

Even if it was not for Eriksson’s suggestion, Youngho was going to explore the whole Kazakhstan and find hidden gold. Now there was a compelling reason to do so as Eriksson said that there would be a global financial crisis. And Kyrgyz gold mine would be also developed gently so that it would not damage nature.

***

April was still winter in the Kyrgyz-Chinese border area of 1,500 meters above sea level.

Except for the sunny places, it was snow and ice that made it seem difficult for soldiers to guard. On the other hand, the tactical armored vehicles of Turkey’s Otokar, which moved its headquarters to Kazakhstan, were prevalent in the area that soldiers’ mobility was dramatically enhanced.

The border line with China was more than 2,400 kilometers. Except for the 1,100 kilometers of the Tian Shan Mountains section, where it did not need to be guarded, 1,300 kilometers of the borderline should be guarded. Despite that fact, only 12 regiments under the province’s four brigades were deployed and soldiers were located sparsely that it was hard to spot one at the border. This was because the area that bordered China was too long.

Before Kazakhstan became a constitutional monarchy, only five regiments stood on the border. Back then, Kazakhstan had a more friendly relationship with China.

Since Youngho took control of Kazakhstan, the border troops at the Russian Border and Kyrgyz border were moved to China’s border areas, creating a slightly tight border.

The Russian border area had no regular army as they were replaced with combat police. After that, Russia also replaced their border soldiers with combat police as well.

It was because it was funny that the military would be deployed against a country that was not an enemy. Besides, whether Kazakhstan’s relationship with Russia was good or not, there was no way to protect Kazakhstan with its long, 6,800-kilometer border against Russia, so Youngho sent 50,000 troubled police officers to the Russian border.

The only armed means to target Russia were three air defense networks introduced by Sweden in the royal territory. In other words, Kazakhstan’s gesture was a promise that it would not provoke Russia.

Youngho visited the headquarters of the four brigades at the Kyrgyz-Chinese border region and was now about to visit the last regiment. The unit was located at the far end of the northeast of Kazakhstan, and the area bordered Russia, Mongolia, and China in parts.

“Your Highness, this is the last unit.”

“It must be hard to keep a close eye on this place because it’s an open land.”

“It’s the other way around. It’s very easy to work because they’re on the lookout with Russian forces.”

“You mean the Russians are guarding our territory?”

“It’s a battle of pride with the Chinese military.”

“What do you mean?”

“This is where there was a border conflict with China during the Soviet era. The Chinese army was defeated at that time. So the Chinese troops here are at their best and heavily armed. During the period of independence, our forces were so terrible that we kept the Russian army stationed here, and that tradition still continues in this place.”

“The Chinese side doesn’t make a problem out of it?”

“Including Mongolia, it’s where four countries are facing each other. Russia and Kazakhstan are Commonwealth of Independent States, so there’s nothing strange about joint security. Also, since China deployed a lot of troops to make up for its past shame, it can’t say anything about it.”

There was a strange area in the front line of the northern part of Kazakhstan. It was a place where one could feel a heavy tension that it would not be strange if one heard a gunfire at any moment.

The commander of the Russian military’s regiment came to greet Youngho. When Youngho spoke in sound Russian, he excitedly explained the troop deployment situation.

It was a little weird that the Russian commander had stepped forward to greet Youngho despite the Kazakh unit commander, but it was a natural move for the commander because Russia and Kazakhstan were maintaining an amicable relationship now.

This scene most definitely would be seen by the Chinese troops, and it would be reported immediately to the military headquarters in Xinjiang Uyghur. The Russian military commander was probably aiming for this.

Rather than provoking the Chinese military, it was more like showing off Russia’s relations with Kazakhstan.

Youngho wondered how China would interpret the fact that the Duke of Kazakhstan was briefed by a Russian commander at the border during this time of peace.

“Isn’t it a breach of agreement for Chinese troops to be so close?”

“So the Russians are forward-deployed as well.”

“Since when did the Chinese armed forces were deployed this close?”

“The agreement has not been kept since the very beginning. It is a place where the pride battle between China and Russia was so intense that they don’t budge an inch.”

“Please don’t deploy our border troops forward because Russia and China had done so. We should observe the agreement for our justification. You should pay close attention, Commander.”

“I’ll keep that in mind.”

The brigadier general responded with a loud voice. He was relieved that he did not listen to the commander of the Russian military.

“Have you had any clashes with each other?”

“There have been occasional physical clashes between China and Russia, but we haven’t had any clashes yet.”

If it did, a report would have been posted immediately. There was no way it could have been hushed. Had Youngho not traveled around the border area this time, he would not have known that such a place existed.

He wondered if the Russian government in Moscow knew about this. This was a place where a minor clash could lead to big battles.

This was the right place if China decided to pay back Kazakhstan for stopping its purchase of the Uzbek gold mine. If the road to Europe was also blocked, it would use this place as an opportunity to provoke pressure on Kazakhstan.

Youngho had been careless, but his visit to this place alerted him. He was certain that something could happen here, the northeast front.

He thought that he should persuade Russia to retreat to a certain distance since this was an important time when Kazakhstan could not be involved in any dispute. Until all Kurds moved and settled down, the country should be in a stable state.