Republic of China: Ace Pilot

Chapter 210, Page 209: Aerial Pursuit, Silver Acquisition Act
The two aircraft swooped down, the seaplane in front and the Hawk-2 behind, the distance between them constantly closing.

The seaplane's maneuverability and burst speed are significantly weaker than the Hawk-2, so it's only a matter of time before it gets overtaken.

The Hawk-2's machine gun was already aimed.

Suddenly, the seaplane controlled by Fang Wen pulled up in a U-shape. The buoyancy of the high-wing monoplane allowed the aircraft to quickly complete the transition from a dive to a climb.

They separated instantly, greatly increasing the distance between them.

Fang Wen had used this tactic against the Japanese air force during the January 28 Incident air battle, and it was even more effective this time due to his improved abilities.

However, the Hawk-2 fighter jet then turned and caught up.

Li Tiezhu loudly instructed, "General Manager, it's here again."

Fang Wen smiled and said, "This guy's engine can't support high-speed endurance. If he does another tactical evasion, his engine won't be able to handle it."

After saying that, the seaplane suddenly raised its nose and completed a steep climb.

This is a maneuver that a biplane cannot perform; the assistance provided by the wings would cause damage to the wings during a steep climb.

But the Hawk-2 had another way to deal with it; it flew forward and made a preemptive pursuit.

This means that the Hawk-2 pilot predicted that after the seaplane climbed at a steep angle, it would fly in the direction he predicted.

Unfortunately, he didn't know that a steep climb was just a starting move; it could evolve into a somersault and a cobra maneuver.

It can also be climbing and turning.

Somersaults and cobra maneuvers were obviously impossible. Even if they could be done, Fang Wen would have to consider the four action team members who were about to fall apart.

Therefore, he was just using the steep climb as a feint; the other plane went in the direction he wanted to go, but the seaplane flew in the opposite direction.

This flight took them right across the Thai border. If the other side chased after them, they would have to explain themselves to the British.

Thus, the aerial chase came to an end, and the Hawk-2 fighter jet returned to base in a fit of rage.

Fang Wen then turned around and asked the four people in the cabin behind him, "Are you all alright?"

vomit!
Li Tiezhu wiped the foam from the corner of his mouth. "The general manager is fine. We're all doing well."

Young people, they have to be ambitious.

Fang Wen chuckled to himself, said nothing, and continued flying the plane northeast.

This time, we didn't enter Thai territory, and nothing went wrong.

An hour later, the plane entered Chinese airspace and continued flying for a while before finding the river called the Lancang River.

This river extends all the way abroad, where it is known as the Mekong River.

The river flows swiftly and gently, sometimes turbulent, sometimes calm, depending on the terrain.

Flying upstream along the river, you'll reach Jinghong.

Jinghong was called Cheli in ancient times, and it was an official place that existed as early as the Yuan Dynasty.

The city is small, but it is very imposing.

The plane circled in the air for a while, drawing out a group of people who guided the landing site along the Lancang River.

Fang Wen glanced at the direction they were pointing. The river was calm, with rafts passing by. It was wide enough to be a good landing spot.

The plane then descended, and as it continued to drop, two ripples appeared on the water's surface.

Immediately afterwards, the buoy landed on the water, rubbing against the surface and drawing long white lines.

Many people came to the shore to watch the spectacle.

After taxiing for a while, the plane came to a stop, and Fang Wen turned the plane around and headed towards the shore.

Propelled by the propellers, the plane slowly moved toward the shore. When it was a few meters away, a roll of rope was thrown over from the shore.

Using ropes, the plane docked at the shore, and Fang Wen and the other four disembarked to negotiate with the people who were there to greet them.

The other party introduced himself: "I am the manager of Asia Tobacco Company. Taishan Airlines is an important partner of ours. They specifically requested that we treat you well. I have been waiting for you for a long time. Come on, let's go to the city. The banquet has been prepared."

Fang Wen said, "You guys go ahead, I'm going back."

"No, please. Airplanes are rarely seen in Jinghong. This gentleman next to me is Young Master Zheng Hanlong. He would like to have a chat with you." The manager said, introducing the young man beside him as he tried to stop him.

Wu Yingzong and his three companions turned cold and were about to make a move, but Fang Wen stopped them.

"It's not impossible, but the plane is on the river, and there's a risk of problems."

"It's alright, my Zheng family will guard it for you, no one will dare to touch it." The young man waved, and a group of local men carrying long guns walked to the side of the plane and stood guard.

Now, whether I like it or not, I have to go.

Immediately afterwards, Fang Wen and his group went to Jinghong City.

In the best restaurant in the city, a table was indeed set with fine food and wine.

As the host, Zheng Hanlong offered a toast and then took the initiative to introduce the dishes.

"This is beef tendon, which is usually too tough to chew. Only by braising it with our special braising sauce can it become soft and delicious. We also have sour meat, pineapple rice, and our Dai ethnic group's special grilled fish."

Since they were so enthusiastic in introducing the dishes, Fang Wen couldn't refuse, so he took the lead and tried some of the food.

The beef tendon was really easy to bite through, with a chewy texture, and the spices permeated the tendon—it was truly excellent.

Sour meat is also made by the Miao people near Xiangxi Airport. It is made with glutinous rice and fermented fatty meat, and can be eaten after being fried.

But is the sour meat here the same?
It's completely different. The sour meat here is made in a similar way to sauerkraut, and it can't be sour without meat.

Boiled beef tendons are mixed with salt, chili peppers, wild Sichuan peppercorns, garlic cloves, and minced ginger, then placed in an earthenware jar and sealed to marinate.

This is called sour beef tendon.

You can also make sour dishes using beef head and beef feet, after boiling them and adding other ingredients.

How strange, this is the first time Fang Wen has ever eaten this kind of food.

But if Kwong Ming-chu comes, she must have eaten it before. Kwong Ming-chu said that Thailand also has sour meat, which should be similar to this.

After a few rounds of drinks and a bowl of rice, Zheng Hanlong revealed his true intentions.

“I think your plane is quite interesting; it can land on the river. Our Zheng family is rich and powerful, but we are stuck in this small place. If we had a plane, we could travel all over the Lancang River.”

Fang Wen chuckled to himself, thinking that having airplanes wasn't enough; the world outside was vast.

But this man seemed to have the potential to become his customer, so he smiled and asked, "Young Master Zheng, are you looking to buy a plane?"

"Yes, don't say anything yet, let me make an offer and see if it's right."

Zheng Hanlong actually offered to help Fang Wen quote a price; let him handle it.

With a slightly flushed face, Zheng Hanlong said, "Some time ago, I went to Kunming and met with Chairman Long's Yunnan Air Force. They bought five new P-26 fighter jets; those are really good stuff."

Chairman Long bought five P-26s? Fang Wen was stunned.

Wasn't the Nationalist government supposed to buy 10 P-26s?

How did it become the Yunnan King who bought it?

He asked around and then he understood.

The Nationalist government did indeed order 10 aircraft, and they even specially produced them to prepare for delivery.

As a result, the Nationalist government couldn't afford it, so Chairman Long bought half of it, and the other half was shipped to British India.

So that's how it is. Fang Wen felt he had changed part of history.

Without the Shrike's Eurasian flights, the performance of these aircraft would not have been disseminated.

But that's alright, Fang Wen felt that the plane wouldn't be of much use once it was in the hands of the Nationalist government.

He raised his glass to drink with Zheng Hanlong: "So, what's the price?"

“A P26 costs $45,000, so yours is worth at most $30,000.”

"Forty-five thousand?" Fang Wen was stunned.
Then he realized that with the dollar depreciating by 40%, the price of exported products had naturally increased by 3%, and the P26, which originally cost less than $4, now cost $5000. But his own plane was completely cobbled together, and he hadn't expected the other party to give him such a high price.

He asked, "Are you sure?"

"Of course I'm sure. I checked, and it can carry four people, fly from Yangon to here, and land on the river. Not to mention the P-26, there isn't a single plane in the entire Yunnan province that can do that."

So that's how it is. They're looking at it from their own needs. In Xishuangbanna, they do need seaplanes because they're easy to land and take off, and they don't need an airport.

Fang Wensheng felt a sense of sudden enlightenment.

He discovered the enormous market potential in the aviation industry.

In this era, land-based aircraft are the main battleground for competition among various aircraft manufacturing companies.

However, land-based aircraft require airports, and even with the use of particularly durable Goodyear tires for landing in the wild, there are limitations.

Seaplanes, however, can land and take off on various calm water surfaces.

The Yangtze River is fine, as are Dongting Lake, Poyang Lake, and Taihu Lake; all major water systems can be used for landing.

China has no shortage of waterways, but plenty of places for airplanes to take off and land.

Furthermore, the ocean, South Asia, and Southeast Asia are all surrounded by the sea, making them a paradise for seaplanes.

But there are also problems.

Fang Wen's excitement subsided.

Because seaplanes need to balance buoyancy and stability on water, their fuselage and power systems are often quite large, which limits their flight speed to some extent. Compared to other types of military aircraft, seaplanes are at a disadvantage in high-speed flight, making it difficult for them to quickly reach the battlefield or carry out rapid strike missions.

Seaplanes also have shortcomings in terms of weapon carrying capacity and combat capabilities. Due to limitations in their fuselage structure and takeoff and landing characteristics, seaplanes cannot easily carry weapons externally on their wings or design internal weapons bays, which limits the types and quantities of weapons they can carry. Therefore, when performing combat missions, the strike capability and fire support capability of seaplanes may be relatively weaker than those of land-based aircraft.

These two reasons prevent seaplanes from becoming mainstream military fighter jets.

Insufficient speed and weak weapon systems greatly reduce the opportunities available for combat.

These weaknesses cannot be compensated for by simply rising and falling on water.

Therefore, seaplanes are a huge pitfall in war; whoever invests in them is doomed.

Fang Wen laughed nonchalantly. "If it doesn't work, then don't do it. There are so many airplanes in the future. As long as you have money, you can buy anything."

Yes, money is king. Seaplanes have no future in the military field, but they can be promoted in the civilian field.

Surprisingly, there were very few competitors in this market, which allowed Taishan Aviation to enter the aircraft manufacturing industry.

He smiled and started talking business with Zheng Hanlong.

"$3, are you really going to buy it?"

"I'll buy it. But I don't know how to drive it, what should I do?"

"No problem if you can't drive. Come to Yangon, I'll teach you. Once you've learned, you can drive straight home."

"Really? I'm really stupid."

Fang Wen laughed and said, "How about I take you on a flight later?"

Zheng Hanlong's eyes lit up; that was exactly what he wanted.

Then, the two left the city and boarded a seaplane on the riverbank. He was in the pilot's seat, while Zheng Hanlong lay on the pilot's seat, watching curiously.

As the engine started, the plane bounced up and down.

"It feels like being on a ship."

"Stand still, we're about to take off." Fang Wen accelerated, the plane gliding across the river, white waves passing over the line, red birds soaring into the sky.

Zheng Hanlong found the airplane takeoff to be easy, which piqued his interest.

"Okay, I'll buy this plane. Take me to Yangon for a flight now."

Fang Wen did not agree, but asked, "Wait a minute, I want to know where you got so many US dollars."

“Some people exchange dollars for silver. My family exchanged a lot of them, but they’re useless. We might as well exchange them for airplanes.”

Zheng Hanlong revealed the real reason, which made Fang Wen realize that the price of silver was about to skyrocket.

In the face of the impending silver crisis, selling an airplane for $30,000 is just a small business.

Fang Wen did not immediately accept Zheng Hanlong's cash transaction, but told him to wait two months.

He immediately flew back to Yangon to begin preparing to stockpile more silver.

Meanwhile, in order to boost his confidence, Fang Wen was also analyzing the matter.

After consulting with a professor in the economics department of Tsinghua University, he gained a better understanding of silver.

The entire world has shifted to the gold standard due to colonization and international trade.

A little over a decade ago, British India used silver currency; now it has switched to the gold standard pound sterling.
Now only China remains as a country using silver as currency.

Therefore, silver has been in a weak position over the years.

From 1928 to 1932, the international price of silver fell by more than 50%, and a large amount of silver flowed into the Republic of China.

In other words, China currently has the world's largest silver reserves.

Will China, with its vast silver reserves, benefit from this surge in silver prices?

Or did all the profits go to bureaucrats, compradors, and wealthy merchants?

……

In June 1934, following the Gold Purchase Act, Roosevelt enacted the Silver Purchase Act.

Fang Wen, who had been preparing for this for a long time, couldn't wait to check the contents of the bill.

1. Increase the value of silver as a monetary reserve to one-third the value of gold as a monetary reserve;

2. The U.S. Treasury Department decides on the timing and terms of purchasing silver in domestic and international markets based on whether it is in the public interest of the United States.

3. When the price of silver rises to $1.2929 per ounce, or when the value of silver used as a monetary reserve reaches one-third of the value of gold used as a monetary reserve, the acquisition of silver should be stopped.

4. Currently, the price of silver in the United States must not fall below $0.50 per ounce;

5. Silver should be sold when the value of silver reserves exceeds one-third of the value of gold reserves;
6. The Ministry of Finance can control import, export, and other transactions related to silver;

7. The president announced the nationalization and acquisition of silver;
8. A 50% income tax will be levied on other profits from buying and selling silver.

These eight points made Fang Wen's head buzz.

Things turned out differently than Fang Wen had expected.

The Americans have changed the rules of the game, and now there is only one buyer in the entire US silver market: the US Treasury Department.

Article 8 stipulates that a 50% income tax will be levied on profits from trading silver, effectively blocking the entry of most foreign participants.

While they cannot profit from buying and selling silver domestically in the United States, they can circumvent this law by selling it abroad as American silver producers.

This is good news for US silver companies and also prevents foreign silver from flowing into the US and maliciously manipulating silver prices during the US Treasury's acquisition of silver.

What does this mean for the gold company established by Fang Wen?

This means that the silver in those vaults can only be sold in markets outside the United States.

Outside of the US market, there is no demand except in China. Silver prices in Shanghai will definitely rise, but not as much as in the US.

This doesn't align with Fang Wen's vision.

Is it really going to end like this?

Impossible. Fang Wen recalled the saying, "A thousand-mile dike can be destroyed by an ant hole." They could control the overt silver transactions, but they couldn't control the covert ones.

Perhaps Americans have their own ways of dealing with this.

Fang Wen then made transoceanic telegram contact with the United States.

(End of this chapter)