1977: The beginning of the blind date with the daughter of the king

Chapter 668 Using the Governor's House as a springboard!
In the study, Bao Yugang and Li Changhe were sitting across from each other at the desk, chatting idly.

“Ah Yang, you now have two problems in front of you. The first is your relationship with the Governor’s Office.”

"Over the past few years, you have maintained a distant attitude towards the Governor's House. Although I can help you navigate this situation, I'm afraid I'll have to use up all my influence in the future."

"Especially after your large-scale investment in the mainland, the Hong Kong government has become somewhat dissatisfied with your attitude."

"As far as I know, London has already put the issue of Hong Kong Island on the agenda for consultation. The next point of contact will not be the Governor's House, but Downing Street."

"In this situation, the priority for the Governor's Office is to win over the wealthy people on Hong Kong Island and get them to stand on the same side as the British."

"Given your current position, you are a particularly important figure here. The Governor's Office will definitely pressure you to make a statement, so you should be mentally prepared."

At this moment, Bao Yugang spoke earnestly to Li Changhe.

Because of Li Changhe's special status, he has not been willing to have much contact with people from the Governor's Office in recent years, and Bao Yugang also doesn't want him to have much contact with them.

To put it bluntly, he has patriotism, but he also has his own businesses. If Li Changhe were exposed, it would be a huge blow to his businesses, which is something he also has to consider.

So in recent years, Bao Yugang has been helping Li Changhe alleviate this pressure by acting as an elder and by catering to the people on the Governor's side.

However, now that the secret contacts between China and Britain regarding Hong Kong Island have repeatedly failed, the Governor's Office has begun to make final plans and exert pressure. Under these circumstances, Bao Zeyang's statement is crucial.

After all, he is now one of the largest real estate developers in Hong Kong Island, holding the behemoth that is Hongkong Land, and from it, many other important industry leaders have emerged in Hong Kong Island.

For example, Wellcome in the retail sector is now showing a trend of dominating Hong Kong Island, forcing Hutchison Whampoa's ParknShop supermarkets to retreat step by step, only able to shrink to the new towns and remote areas around Hong Kong Island, barely surviving by relying on price advantages.

This year, Li Changhe did not attend the Lunar New Year celebrations, and the Hong Kong government's attitude showed dissatisfaction, which indirectly put pressure on Bao Yugang.

Therefore, Bao Yugang had to give Li Changhe a reminder.

Hearing Bao Yugang's words, Li Changhe smiled and nodded: "Uncle, actually, I don't have any problems on my end. I've already made all the arrangements back home. From now on, I'll be using the identity of Bao Zeyang as my main identity."

"So dealing with Government House is not a problem, but I don't want to deal with Government House right now."

"why?"

After listening to Li Changhe's explanation, Bao Yugang was somewhat puzzled.

Li Changhe laughed and said, "To put it bluntly, I don't think the Governor's House is qualified. It's just occupying the name of the British on Hong Kong Island. This kind of righteousness may be intimidating to others, but it means nothing to me."

"Given Hongkong Land's current size on Hong Kong Island, I don't think the Governor's Office can offer me any terms to negotiate."

"If you want to recruit me as your leader, you can't do it without making some sacrifices."

Perhaps the Governor's House still held considerable power for people like Bao Yugang, but for Li Changhe from later generations, it held little real power.

The most important deterrent force of a regime comes from its military power, but in Hong Kong, the British military power has been almost completely abolished, even though it still has nearly 10,000 troops stationed there today.

However, given the context of the Sino-British negotiations, these British troops dared not make any rash moves. Moreover, Li Changhe was not without his own people. His security company now had more than two thousand people scattered across various industries, but that did not mean he could not cause trouble.

Aside from the use of force, the Governor's Office's control over Hong Kong Island was primarily commercial, but this was precisely its weakness.

Hong Kong Island inherited the British system and has always been located overseas, making it a typical colonial governance model. An important characteristic of the colonial governance model is small government and large society.

In a sense, this place has long been the kind of "neoliberalism" promoted by Thatcher and Rigne.

The "small government, big society" model means that the government's functions are reduced while the powers of commercial capital are expanded. In the past, on Hong Kong Island, this sharing of commercial capital was given to trading companies like Jardine Matheson and Swire.

Therefore, Jardine Matheson was known as the "uncrowned king" of Hong Kong Island, which also means that many of the powers Jardine Matheson obtained were extraordinary powers granted by the Governor's Office.

Just like the properties under Hongkong Land, the leasehold rights are all for 999 years. Once these lands have been approved, the Governor's Office has almost no influence over these plots.

Looking at Li Changhe's assets, they mainly fall into two categories on Hong Kong Island: land and clothing. The Governor's Office had little control over the land assets, but as for the clothing business, even setting aside the fact that it was a joint venture with Europeans, the fact that these clothing items were supplied to the US market was something the Governor's Office had to consider.

After all, the Bosac Clothing Group is now incredibly famous in the United States and Europe. Under these circumstances, the Hong Kong Government would not easily do anything to it. Even if they did, Li Changhe would not be afraid of lawsuits, and it might even attract international attention.

Not to mention, Bao Zeyang is now on good terms with the US government.

In this context, Li Changhe really didn't need to give face to the Governor's Office.

“I know you have good relations with the US government, but as the saying goes, a local official is more powerful than a distant one. In any case, Hong Kong Island is still in British hands, and you can’t afford to offend the Governor’s Office.”

"It's still necessary to make contact when appropriate. These people may not have the ability to destroy you now, but they still have the ability to annoy you."

Bao Yugang whispered words of advice to Li Changhe.

Li Changhe nodded, then said earnestly to Bao Yugang, "Uncle, this is actually what I think."

"Since HSBC was able to sell Hutchison Whampoa to Li Ka-shing to win him over, then the Governor's Office must also make a gesture on my side."

"I actually wanted to use the Governor's House to help me negotiate with Downing Street for my interests."

"Trying to gain benefits from Downing Street? What do you want?"

At this moment, Bao Yugang asked Li Changhe curiously.

Li Changhe smiled slightly, then uttered two words: "Car!"

Upon hearing Li Changhe's words, Bao Yugang suddenly realized what was going on.

This kid actually wants to get involved in the automotive industry?
But thinking about it, it makes sense. For a country, industrial capacity is the most direct demonstration of its national strength, and the automotive industry is one of the most important industrial categories.

Any powerful industrial nation is inevitably accompanied by a powerful automobile industry, which is a very important part of the industrial system.

As for the automotive industry on the mainland, it can now be said to be insignificant.

Li Changhe has money, and since he needs to consider the mainland, the automotive industry is indeed a worthwhile area to invest in.

However, this direction is also very difficult.

On the one hand, the investment is huge; on the other hand, many countries attach great importance to the transfer of the automotive industry, because everyone knows that it can rapidly enhance a country's industrial strength. "You want to get automotive technology from Britain?"

At this moment, Bao Yugang asked Li Changhe seriously.

Li Changhe nodded: "That's right, Uncle, I think now is an opportunity."

"Britain was once the birthplace of the automobile, but after World War II, the British automobile industry began to decline rapidly, and it continues to do so to this day."

“Currently, all car brands in the UK are under Leyland, and almost all of them are losing money. I think this is an opportunity!”

Since he wanted to acquire automotive technology from Britain, Li Changhe had done serious research over the past two years and gradually understood why Britain privatized automotive technology—simply put, the losses were too great.

After World War II, in order to counter the rise of American and Japanese automobiles, the British automotive industry began a rather peculiar practice: mergers and acquisitions.

They continuously acquire other car brands, grow the company, and seize market share.

By the 1960s, this series of mergers and acquisitions had left only two car companies in the entire UK: Leyland and British Motors.

However, this merger did not have a good effect, and both car companies were still losing money. So they decided to continue merging.

As a result, Leyland Motors merged with British Motors, thus becoming a dominant force in the UK and a behemoth that integrated the vast majority of car brands.

Leyland's portfolio includes not only passenger cars, but also 35 car brands across various industries such as trucks, buses, and special-purpose vehicles, which has resulted in losses that have made it a behemoth.

When Leyland Company realized it had no other options, it went to the British government, saying, "You were the one who made me merge, so how are we going to resolve this now?"
Then the British government could not stand by and watch Leyland go bankrupt, so it simply acquired it, turning Leyland Motors into a state-owned enterprise. Not only that, it also announced that it would invest £1 billion over eight years to support Leyland Motors.

This was done by the British government in 1975, when the Labour Party was in power.

Now, seven years later, almost all of the British government's investment of pounds has gone down the drain, and Leyland Motors is in an even worse situation.

However, according to the information Li Changhe received, at least for now, the British government and Margaret Thatcher's side have no plans to privatize Leyland. For them, perhaps Leyland can still be saved, or perhaps Leyland is not yet ready to go bankrupt.

But Li Changhe couldn't wait, because he knew very well that by the time the British government actually announced the privatization of Leyland, he might not be able to make a living.

After all, back then, giants like Ford, Mercedes-Benz, and BMW would all be eyeing Leyland, and Li Changhe didn't have much of an advantage over these automotive giants.

Moreover, by the mid-1980s, it would be difficult for Li Changhe to focus on the automotive industry, since both Japan and the Soviet Union were on the verge of collapse at that time.

Therefore, for Li Changhe, the best course of action is to strike first, and now may be an opportunity.

“Uncle, I think that with your personal relationship with Thatcher, we have a chance to acquire one of the car brands in Leyland, but that is on the premise that Leyland is sold on a large scale.”

“Right now, Leland has no intention of selling, so we can’t make a move. I think that using Government House as a springboard might be a good solution at this time.”

Without the British government explicitly granting ownership of Leyland Motors, it would be extremely risky for Li Changhe to rashly approach the British government to buy the car brand. Even with Bao Yugang's good relationship with Thatcher, the success rate of such a deal would be very low.

However, nowadays, if Li Changhe were to approach Downing Street or Thatcher through the Governor's Office, he felt that there might be room for negotiation.

Because this would transform from an economic and trade transaction into a political deal, Downing Street and Thatcher would be considering the political rewards Britain could gain in this direction, rather than the economic ones.

At this point, if Bao Yugang's relationship with Thatcher were to be added, then for Li Changhe, the matter would have a chance of success.

Even if it didn't work out, Li Changhe felt he could still demonstrate the Bao family's interest in the automotive industry to Downing Street, so that when the British government privatized Leyland Motors, Li Changhe could openly interfere.

"You want the Governor's Office to make the first move for you, offering a car brand as a bargaining chip in exchange for your support on Hong Kong Island? Do you think the Governor's Office will agree?"

Bao Yugang asked hesitantly.

Li Changhe smiled and said, "That depends on how much Hong Kong Island holds in their hearts."

According to Li Changhe's understanding from his previous life, Hong Kong Island really held a high position in the eyes of the British government. Asking them to sell a car brand in exchange for the support of a top family on Hong Kong Island was a deal that they might not be unable to make.

Conversely, Li Changhe also has connections with the United States, which may be a bargaining chip for Downing Street.

"This matter."

Bao Yugang hesitated.

Well, it sounds like a fantasy, but just like Li Changhe's previous plans, upon closer examination, it actually makes a lot of sense.

Although it's ridiculous, it's not impossible.

"You can discuss this, but I have to tell you that after you finish discussing it, you can't immediately cooperate with the mainland. That would make your intentions too obvious. If you do that, not only Britain, but also the United States might become suspicious of you, and your risks would be much greater."

Bao Yugang thought for a moment and then gave Li Changhe some pointers.

Li Changhe smiled and nodded: "Uncle, I'm not just thinking about the domestic situation. The country is so big, it can't develop an industry by relying on just one car brand. Not to mention, major Japanese car companies are eyeing the mainland market."

"I'm simply optimistic about the development of the domestic market, especially the automotive market. Just think about it, once a car market with a population of one billion is developed, it can completely rival the combined markets of the United States and Europe."

"Such a market can support several world-class giant car companies at the same time. My plan to enter the market is to bet on this."

Li Changhe knew very well that even if he acquired the British car brand, he wouldn't be in a hurry to enter the domestic market.

Let's focus on developing the technology first. We need to build strong defenses and stockpile resources. After all, the domestic automobile industry can't be built up overnight.

Hearing Li Changhe's words, Bao Yugang nodded: "Since you have this idea, then I'm relieved."

"It seems you have a plan regarding the Governor's House and the British side, so I won't say any more for now."

"Let's talk about another matter of yours now, which you also need to seriously consider."

"That's your marital problem. To be honest, I'm finding it hard to handle this myself."

At this moment, Bao Yugang smiled wryly and said to Li Changhe.

(End of this chapter)