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

Chapter 680 Aviation Planning!

Zhu Lin stayed at Peking Union Medical College Hospital for seven days before leaving, and underwent a comprehensive examination before departing.

After Zhu Lin returned home with her child, Li Changhe began preparing for the banquet.

It's easy to invite family and friends, but there are some people that Li Changhe has to personally invite.

In the evening, at Director Lu's home.

Director Lu was full of surprise when he heard the purpose of Li Changhe's visit.

"This is great! I have to participate. I'm free of any worries right now, so I can go."

"But Changhe, where do you plan to hold this banquet?"

Director Lu then asked with a smile.

Li Changhe said softly, "I plan to hold the regular banquet at the Jianguo Hotel, mainly because my parents and in-laws have too many colleagues and friends, and a small place wouldn't be enough."

"As for you and your companions, I'm thinking of having a table at the Beijing Hotel. What do you think?"

Upon hearing Li Changhe's arrangement, Director Lu nodded: "That's a good arrangement. I'll arrange the rooms at the Beijing Hotel. I'll let you know when the time comes."

"Then thank you, Elder Lu."

"There's one more thing, Mr. Lu. I heard some news in Hong Kong."

"It's been coming from Downing Street in the UK that they plan to use their post-Falklands victory to negotiate with us about the Hong Kong issue. It seems that Downing Street has already decided on this strategy."

At this point, Li Changhe took the opportunity to tell Director Lu what he knew.

After listening, Director Lu couldn't help but shake his head.

"The power of victory?"

"I've heard that the British are having a very difficult time fighting in the Falklands. I've heard that their diplomats have even gone to France and the United States."

With China's opening up to the outside world and the start of exchanges with Western countries, some intelligence work has gradually begun, and the efficiency of transmitting news from the outside world has become very high.

The domestic understanding of how well the British were doing in the Falklands is now being developed.

Originally, the whole world thought that Britain would win easily by taking military action against Argentina this time, but the reality has given everyone a big surprise.

That feeling was like the later Mao Zedong's attack on the Second Mao Zedong; what was initially thought to be an overwhelming victory turned out to be a series of difficult steps.

The fig leaf of the old empire was torn to shreds in an instant, and the once rampant Royal Navy was now almost buried at the bottom of the Atlantic Ocean.

As a result, Britain had to resort to military tactics and begin cutting off Argentina's "logistics," that is, contacting the United States and France to stop selling weapons to Argentina.

So far, Britain has made a laughing stock of itself in this battle.

"I doubt Downing Street itself expected their army to be so weak, but the US and France will definitely support Britain, and they should ultimately be able to defeat Argentina."

"The next step is probably to use the momentum of the victory to negotiate with us."

“In addition, when I was on Hong Kong Island, the outgoing Governor Murray MacLehose approached me. His implication was that he wanted to win me over to stand on the same side as them.”

“I estimate that besides myself, many wealthy Chinese people have also been courted, and the other side may use Western-style public opinion to hold us hostage.”

Li Changhe continued earnestly.

Director Lu nodded in agreement: "What you said makes sense. I will report this matter to my superiors. In fact, we are already aware of this information. Your report confirms some of our judgments."

"Mr. Lu, there's one more thing I hope you can report to your superiors!"

"It's a business idea of ​​mine on Hong Kong Island, but I think it should also be helpful to the mainland."

Li Changhe then spoke seriously.

"Oh? You tell me!"

Director Lu looked at Li Changhe with some curiosity.

Li Changhe rarely seeks help from the mainland in business matters. This should be considered the first time he has asked to use the mainland's resources to develop his business in Hong Kong.

"That's right, I want to open an airline on Hong Kong Island."

Li Changhe said seriously.

"An airline? That's a huge investment!"

Upon hearing Li Changhe's words, Director Lu said in surprise.

Airlines are a capital-intensive industry. A single commercial passenger aircraft can cost tens of millions of US dollars, and the number of passenger aircraft required by an airline is not small.

It's not something that can be done with just ten or eight passenger planes; it requires at least dozens or even hundreds.

In addition to passenger planes, there are also various other types, such as cargo planes.

Therefore, the investment required by an airline is an astonishingly large sum. Director Lu was still shocked when Li Changhe suddenly announced his intention to get involved in the aviation industry.

However, on the other hand, Director Lu also realized the benefits of Li Changhe's involvement in the aviation industry.

For the country, having an airline based on Hong Kong Island is very advantageous.

Due to the stagnation of the past few years, the development of China's aviation industry has been very slow, especially in terms of connecting with Western countries' air routes, which is currently in the initial stage of expansion.

After all, due to the nature of our countries, we are still in the initial stages of contact with the West, and we cannot fully trust each other.

Air routes are not something that can be agreed upon by two countries in a single negotiation. In addition to opening up air routes, it is also necessary to have one's own aircraft and pilots.

The biggest problem in China right now is that, as the saying goes, even a skilled cook can't cook without rice; there aren't enough airplanes and international pilots.

China's current foreign exchange reserves are insufficient to support the country's large-scale purchase of aircraft to open international routes.

Therefore, many people from the country now have to transfer through Hong Kong Island when traveling abroad, mainly because there are not enough domestic planes and many routes are not available.

However, nowadays, most of the planes on Hong Kong Island are British-owned, such as Cathay Pacific.

This creates a significant security risk.

For example, important Chinese personnel transiting through the country will report their travel information to the airline, and the airline can easily keep track of the whereabouts of many of our scientific and technological personnel and even government officials.

The intangible loss of intelligence, and even the resulting loss of personnel, is incalculable.

Therefore, when Li Changhe said he wanted to open an airline on Hong Kong Island, Director Lu was shocked, but he quickly realized the benefits.

For the country, during a period when national aviation cannot be developed vigorously, the intangible benefits of having an airline in Hong Kong that stands by their side are immeasurable.

What do you want the country to help you with?

Director Lu asked seriously at this moment. Li Changhe replied softly, "Old Lu, I'm not afraid of ordinary business competition. I have ample funds, and I can withstand even initial losses."

"What I'm most worried about is that the Governor's House will take sides!"

"If they stop providing flight routes, it's a death sentence for an airline!"

Li Changhe then spoke seriously.

"No flight routes? You mean..."

“I’m worried that the British will favor Cathay Pacific. If they come up with some policy of one airline per airline, not only me, but all the new airlines following Cathay Pacific will be powerless to resist.”

At this moment, Li Changhe decisively revealed the shady tactics employed by the British in his previous life.

In the previous life, the country also established an airline in Hong Kong, namely Dragonair. Dragonair's initial registered capital was jointly established by China Merchants Group, China Resources, Bank of China, Bao Yugang, Cao Guangbiao, the Huo family, and others.

However, the British first expelled Chinese investment under the guise of politics, and then introduced the "one company per line" policy, which dragged Dragonair down.

The so-called "one airline per route" means that only one airline can operate a single air route. For example, Cathay Pacific already operates the route from Hong Kong Island to Los Angeles, so the Hong Kong government does not allow other airlines to operate the same route.

As a result, Dragonair was almost unable to secure premium routes like Hong Kong Island to London, Hong Kong Island to Paris, and Hong Kong Island to Los Angeles, and could only apply for routes to second- and third-tier cities in Europe and America.

However, the passenger traffic on these routes is incomparable to that of those premium routes. As a result, Dragonair suffered losses year after year during the era of the global aviation industry boom.

Even when the government opened up routes to Beijing and Shanghai to Dragonair, it still couldn't reverse Dragonair's decline, since Shanghai and Beijing weren't considered world-class cities at that time.

Ultimately, Bao Yugang and Cao Guangbiao could not withstand the losses of Dragonair. In addition, Cathay Pacific pretended to join forces with CITIC to acquire Dragonair, with CITIC still nominally holding the largest shareholder. As a result, Dragonair was acquired by Cathay Pacific and eventually disappeared completely.

What Li Changhe wants to do now is to make sure that the country closes this loophole for the British during the Sino-British negotiations.

As long as the British can't compete with top-tier companies, Li Changhe has enough means to compete with Cathay Pacific.

After all, don't forget that he had already guided Bao Yugang to acquire 20% of Cathay Pacific's shares.

These shares certainly don't affect the Swire family's control over Cathay Pacific right now, but one thing is certain: Cathay Pacific isn't publicly listed yet.

Once Cathay Pacific goes public and its shares become publicly traded, Li Changhe can then take action against Cathay Pacific.

Of course, this is on the premise that he must first save his own airline.

"I see. That is indeed a problem. However, if there are negotiations between China and Britain, they will not be conducted in such a one-sided manner. How to intervene is something we need to think about carefully."

Director Lu pondered for a moment before speaking.

Li Changhe nodded: "Yes, these negotiation terms cannot be in the name of our Chinese-funded enterprises, because that would make us vulnerable to being targeted. At that time, not only the British, but even the Americans probably wouldn't support it."

On the surface, the Hong Kong Island negotiations were a matter between China and Britain, but in reality, the Americans were also involved, although they did not show any participation on the surface.

Otherwise, if Americans support Hong Kong not returning to China, the British will arrogantly ignore them unless the mainland forces them at the gates.

The premise for the British to talk to the mainland now is the issue of Hong Kong's return to China, and the British have almost no international support.

Whether it was the United States, France, or Germany, these Western countries tacitly accepted the mainland's choice regarding Hong Kong's return to China, and did not voice their support for Britain.

This is why Britain is honestly preparing to sit down at the negotiating table.

“Mr. Lu, I think you could give feedback to the higher-ups, for example, by adding an anti-monopoly treaty to protect the interests of Chinese capital. This treaty could be seen as a protection for the interests of Chinese capital throughout Hong Kong Island.”

"And what Americans hate most is monopoly. Their aversion to monopoly far exceeds that of the British. So such terms will most likely be tacitly approved by the Americans, who will not allow Britain to erode our interests."

Li Changhe then shared his thoughts.

Hong Kong Island will serve as a platform connecting the mainland and the West, and will not only benefit the British but also the Americans. Therefore, many clauses in the Sino-British negotiations, while ostensibly protecting the British side, actually ceded the interests to the entire West.

Therefore, in many ways, they reject the entry of Chinese capital and set up invisible barriers.

Li Changhe's proposed approach is to abandon the concept of Chinese capital and instead focus on the interests of all Chinese people in Hong Kong. In this sense, it can be seen as a way for the mainland to win over and protect Chinese capital in Hong Kong, thus disguising their intentions.

"Your idea is quite novel. I'll give it feedback to my superiors later, but I can't guarantee the specific terms at that time."

"Let me first discuss your idea with the higher-ups."

"By the way, regarding the petrochemical matter you mentioned before, the higher-ups have already given a response. You can send someone over to Ninghai to cooperate with the oil refinery there."

"But with your investments in petrochemicals and airlines, can you afford to keep them going?"

Director Lu then asked with a smile.

Li Changhe nodded: "The airlines aren't doing it right now. I estimate it will take about two to three years to start. Firstly, I want to wait until our negotiations are over before starting."

"Secondly, I set up a club in Hong Kong Island and recruited many wealthy Chinese scions from Southeast Asia. I plan to use them to expand the airline's capital."

"On the airline side, I want to unite several Chinese capital groups from Hong Kong and Southeast Asia to form a joint venture, and get things started in the early stages."

"If the country needs it in the future, the shares can be resold."

An airline needs strong political backing behind it, so Li Changhe never intended to monopolize and control the airline indefinitely.

His main purpose in starting an airline is actually to support his own cultural tourism projects. He envisions combining hotel accommodations, air travel, overseas intermediaries, and other elements to form a vertically integrated industrial chain, which is his core objective.

In addition, airlines are also a channel for him to maintain relations with Europe and the United States. For example, Dassault Aviation, which is supported by the Rockefeller family, and Boeing, which is implicitly controlled by the Rockefeller family, are all giants in the aviation industry.

Li Changhe's airline procurement can actually be considered an intersection with their subordinate industries.

"Well, now that you have a plan, we will definitely do our best to help you. I'll see and give you an answer in a few days!"

At this point, Director Lu gave Li Changhe a serious reply.

Of course, it's easy to agree to this, but it's actually quite difficult to actually carry it out. The main challenge is that the person in charge of the negotiations must be contacted.

Or rather, he alone isn't qualified; he'd probably need to involve Lao Liao, or perhaps ask someone higher up to speak on his behalf.

However, there was no need to tell Li Changhe about these difficulties.

To them, Li Changhe has already done so much for the country, and this time when he speaks up, the higher-ups will definitely take it seriously. Moreover, this is not only for Li Changhe's own benefit, but also for the national interest.

After all, a reliable air transport network is something that countries currently have a great need for.

"Okay, thank you so much!"

"Alright, you go ahead with your work, I'll go out and visit a few more places to invite Mr. Liao and the others."

Having finished discussing business, Li Changhe also got up to take his leave, as there were still some people he needed to personally invite later.

He personally visited all the high-ranking veterans, such as Liao Lao, Zhang Guangnian, and Xia Yan.

(End of this chapter)