Republic of China: Ace Pilot

Chapter 217, Section 216: Negotiations, Er Dongchen's Investment, Red Army's Food Procurement via Airdrop.
After the third brother in red reported, Fang Wen and his group were unsurprisingly allowed to enter.

In the lobby on the first floor, a man in a tuxedo greeted us with a big smile.

He introduced himself: "Hello Mr. Fang, I am the head manager of Swire Group. Please come upstairs with me to discuss equity matters with that person."

"No rush, we haven't had breakfast yet. I heard that Taikoo Li has a chef who can cook all kinds of delicious food. We can't let ourselves go hungry."

Fang Wen smiled.

"Yes, yes, let's go get something to eat first."

The tycoon led the group into the elevator and headed to the tenth floor.

There, a sumptuous meal was prepared by a chef specially hired by the trading company.

It can be said that this completely dispelled Fang Wen's stereotypes about British food.

After they had eaten and drunk their fill, Fang Wen didn't move: "My men aren't coming with me to negotiate. Are there any entertainment activities you can arrange for them?"

The manager suppressed his displeasure and went to report the situation, and then actually arranged for the five bodyguards that Fang Wen had brought.

At this point, Fang Wencai got up and followed the other person to the top floor.

On the top floor, someone was already waiting for Fang Wen.

Two British people and one Chinese person.

Fang Wen didn't recognize any of them.

He walked over with a smile, shook hands with the three men, and introduced himself: "Fang Wen from Taishan Airlines, it's a pleasure to meet you."

Since he had already explained everything, the other party naturally couldn't refuse to answer.

"Martini of Swire Group, nice to meet you."

“Trian of Swire Group, nice to meet you.”

The last person grasped Fang Wen's hand firmly: "It's a pleasure to meet you. I'm just a talented athlete. I have no official position or rank, I just help people deliver messages and do odd jobs. General Manager Fang's invitation is truly rare."

He is a man who hides a knife behind his smile and is sharp-tongued.

Fang Wen felt no pressure and replied nonchalantly, "You want my family fortune? Of course I don't want that. It's already good enough that you came."

"Haha, General Manager Fang is too kind. Please sit down, let's sit down and talk slowly."

Quan Yuncai and the two senior executives of the foreign firm sat down, and Fang Wen also took his seat.

"Tell me, how do you want to divide it?"

Quan Yuncai remained silent; instead, the explanation was given by a representative from Swire Group.

“We have spoken with your company’s original shareholders. The Ministry of Transport is willing to give up that portion of the dividend shares, while Fuxing Society’s shares remain unchanged. In other words, 90 percent of the shares will be redistributed. Mr. Quan Yuncai’s side will receive 50 percent of the shares, your shares will become 30 percent, and Swire Group will receive the remaining 10 percent.”

Fang Wen's heart was pounding. Even though he was well prepared, he still felt uncomfortable facing this kind of division.

He said coldly, "You just divided up my company like that? What did you give up? And what did I get in return?"

This time, it was only during the National Games that they replied: "You are safe now. From now on, I guarantee you will no longer be wanted and you can return to China. As for the sacrifices, with our support, Taishan Airlines will develop even better in China. In the future, it will not be limited to 5 routes, but 10, 20 routes. As long as you can do it, we will."

Fang Wen sneered: "Do you think I'm your slave? The more I do, the more you earn. What if I don't want to?"

Quan Yuncai got up, opened the door, and asked the waiter outside to bring him a bottle of wine and a wine glass.

He poured Fang Wen a glass and pushed it in front of him.

“We have thoroughly investigated your plans. Taishan Airlines is just an empty shell; without you, the company has no value. Therefore, we must cooperate with you for a win-win situation. If you agree, we will not touch Taishan Airlines' overseas operations, and we will fully support its domestic business. If you want to buy aircraft, we can provide bank loans; if you want to add routes, we can support you from all over the country. Our only requirement is that you continue to manage Taishan Airlines and make it bigger and stronger.”

That's very honest.

This shows that they only want Taishan Airlines' domestic business, and they can't touch its overseas business.

Furthermore, they were also aware that they couldn't manage the airline themselves, so they could only use 3% of the shares to bring Fang Wen back to continue in charge.

In addition, although the people behind the scenes did not invest any funds, they opened up the banks' lending authority, giving Taishan Airlines a financing channel, which enabled it to develop rapidly.

But all of this is not enough.

Fang Wen touched the bottom of the wine glass and spun it around.

"The air distribution branch is mine, you can't touch it."

Quan Yuncai discussed the air distribution company with two senior executives from Swire Group.

Airline distribution companies are currently concentrated in five cities in China. Although their business is booming, the actual money they earn is still far less than that of airlines.

Giving up this benefit to allow the negotiations to succeed is not impossible.

Quan Yuncai immediately replied, "Agreed."

Fang Wen's demands didn't stop there: "The company's management and rules and regulations must remain unchanged, everything must be as it is, and you cannot send anyone into the company to interfere with my work."

"No." All three refused in unison.

Quan Yuncai replied, "Other departments don't need to send anyone, but the finance department must have people from both of our companies involved. Otherwise, if you make some changes to the accounts, our share of the profits will be reduced."

This guy is much smarter than the previous white glove. Fang Wen thought about the negotiation results and considered whether to agree.

Through this negotiation

The controlling stake in Taishan Airlines' domestic branch has changed hands, and the company has become the second largest shareholder.

However, the reduction in equity only affects dividends.

The company's personnel are still under their control.

It can be said that he still controls the domestic company and has access to large-scale, low-interest loans.

Aside from the changes in status and profit-sharing rights, the losses don't seem to be significant.

Fang Wen couldn't help but wonder whose white gloves were these, being so lenient with him.

He asked in a low voice, "I can arrange for your finance staff to supervise, but you have to tell me who's behind you?"

While Quan Yuncai hesitated, Fang Wen was not in a hurry. He picked up his wine glass and leisurely drank his wine.

After a while, Quan Yun poured some wine on the table and used it to outline the shape of an ear.

Fang Wen understood.

He raised his glass, signifying the conclusion of the negotiations.

Such a smooth process surprised Quan Yuncai, and after clinking glasses and drinking together, he asked.

"Don't you feel resentful? If I were you, I would throw a tantrum and drag it out for a month or two before making a decision."

Fang Wen smiled and said, "I am unwilling to accept this. If you are willing to make up for it, please help me contact universities in China. I want to recruit a group of people from these universities."

Quan Yuncai asked warily, "What are you going to do?"

"To build airplanes, I need engineering talents who can understand charts and data and also have practical skills," Fang Wen replied.

"You want to build airplanes?" Quan Yuncai couldn't believe it, and neither could the people from Taikoo & Co. They all thought it was Fang Wen's wishful thinking. At present, China was in dire need of reconstruction. Apart from tung oil, silk, tea, and ceramics, there was nothing else to show for it. With such a foundation, could it really build airplanes?
Perhaps, just like those domestically produced airplanes from a few years ago that could flutter a few times in the air but had no practical use whatsoever.

They didn't believe Fang Wen could succeed, and some even wanted to see him make a fool of himself.

However, appearances must be maintained, which is why the National Games agreed to help Fang Wen with his request to recruit recent graduates from various universities.

The Hong Kong negotiations were successfully completed, and Quan Yuncai became the company's major shareholder, but Fang Wen's losses were not significant.

The new major shareholder even urgently demanded the expansion of Taishan Airlines' Huaxia branch's business.

This matter cannot be rushed. Fang Wen and his team, who have already opened up multiple air routes, have begun preparations for the inspection. Another reason for the delay is the procurement of rice from South Asia.

The fact that Shu Zhitao, a Red Army liaison officer using the pseudonym Bai Yunfei, was able to purchase grain through Taishan Airlines' channels is enough to demonstrate their urgent need for food.

Therefore, Fang Wen did not return to China after the negotiations ended, but flew directly to South Asia.

End of March 1934.

The Shrike landed again at the French military airfield.

He was greeted not only by the airport commander, but also by Fang Shouxin, Manager Liu, Sun Debiao, and Kuang Anming.

"Brother-in-law," Kuang Anming said first.

"It's been a year, and you've grown a beard," Fang Wen said with a smile. Kuang Anming had grown a beard and was no longer the pale-faced scholar he used to be.

“I participated in demonstrations in France and also visited a meeting of the French Communist Party,” Kwong On-ming replied in a low voice.

Fang Wen couldn't help but remind his brother-in-law, "Don't tell anyone about these things when you get back to China, not even your sister. I'm afraid she'll worry."

"I understand, brother-in-law. I won't tell," Kuang Anming replied solemnly. Clearly, what he had seen over the past year had matured him.

After this little incident, everyone went to the airport dormitory. After seeing off the airport commander, Fang Wen began to learn about the rice procurement situation.

Manager Liu said first, "This place is simply a treasure trove. Rice can be harvested three times a year. The annual yield is enough for them to eat for several years. They don't lack food at all."

Sun Debiao added, "In the north of China, we can only harvest one crop. In some parts of the south, the climate is suitable and there is enough rainfall to harvest two crops. But here, the four seasons are the same, and there is rain every season. We can harvest three crops without doing anything."

Fang Shouxin, however, explained the situation from another angle: "We inquired about the grain trade. There are multiple parties involved, mainly rice merchants from Southeast Asia and rice merchants from Guangzhou and Hong Kong. There is a saying among Chinese merchants engaged in the rice business: Rice is the main commodity in Southeast Asian trade, and it cannot be done without tens of millions of capital."

"Oh, why do you say that?" Fang Wen asked.

Fang Shouxin continued to explain: "Most local farmers are not good at business. After the rice harvest, they send their rice to rice mills to sell. These rice mills are established by rice merchants from various places. Large rice mills can process 500 to 1000 tons of rice every day. The processing and transportation alone require a lot of manpower, as well as large storage warehouses. In addition, purchasing rice also requires a lot of capital. Furthermore, the rice business is a long-term business. Rice merchants also need to lend money to farmers and purchase agricultural supplies on their behalf so that farmers can continue to sell their grain to this rice mill in the next season."

As he listened, Fang Wen couldn't help but look at Fang Shouxin.

Yes, Fang Shouxin worked for the Fang family for 20 years, rising from a waiter to the manager, so he's a professional in this field.

After Fang Shouxin finished speaking, he asked, "Uncle Fang, what do you think is the best course of action?"

“The rice mills rarely sell their grain to outsiders. They can make a profit as long as they load it onto ships, and we can’t get their goods. Building a rice mill is too late. We can only buy grain from the local people. Every household here has enough stored grain, and they will sell it as long as the price is right,” Fang Shouxin replied.

"What acquisition price are they willing to accept?" Fang Wen continued to ask.

"0.5 francs per kilogram, which is one cent more than the normal purchase price," Fang Shouxin replied.

Fang Wen immediately began to make a plan in his mind.

With the rise in the price of silver, the exchange rate between silver dollars and francs has changed; one silver dollar is now equivalent to ten francs.

In China, a dan (a unit of weight) of rice cost about 4.5 silver dollars, and a dan was 50 kilograms.

In other words, 0.09 silver dollars per kilogram of rice is equivalent to 0.9 francs.

The gross profit margin is now 80%.

Fang Wen was surprised to find that the rice business was so profitable.

But he wasn't very interested in this business. His family was in this business, and he knew very well that this kind of traditional rice business was extremely complicated.

"Okay, we'll buy it at your price. I'll go back first and get the plane and the money."

After the communication, Fang Wen left the French military airport that same day, flew to Guangzhou, and then returned to Shanghai.

In Shanghai, Kuang Mingzhu has returned home and is helping him undress and fetch water.

"You're back. You can rest now."

After washing his face, Fang Wen shook his head: "Not yet. We need money for the grain purchase, and I need to go there too."

"How much do you need? I'll go get it."

"No need. I came back from the United States with a sum of money, $600 million, which I haven't given to you yet."

The figure of $600 million startled Kwong Ming-chu; that's a lot of money!
But then she remembered that she hadn't seen Fang Wen with this money since he came back; 600 million yuan in banknotes couldn't be contained in a bag.

He couldn't help but ask with concern, "Where did you put it?"

"In the plane, aircraft number A3, I've already had Howard ground and inspect it."

Even with Fang Wen saying that, Kuang Mingzhu was still worried about what might happen to so much money.

At her urging, Fang Wen and she arrived at the Shanghai Airport aircraft maintenance yard.

There, aircraft number A3 sat quietly in the hangar.

Fang Wen took out his tools and entered the cabin.

After a few movements, he removed the floorboards, then made a hook out of a stiff wire and pulled the three bags out from the hollow gap under the floorboards.

One bag costs 200 million, which is exactly 600 million US dollars.

The money has been retrieved.

Fang Wen immediately sent a telegram to Xiangxi Airport.

Telegraph room at Xiangxi Airport.

This telegraph room differed from other telegraph rooms at Taishan Airport; it was only responsible for receiving Morse code and did not translate it.

After receiving the telegram code, the telegraph operator ran to the door of Fang Shun, the newly appointed supervisor of Xiangxi Airport.

After a knock, Fang Shun opened the door, looking annoyed, and asked, "Who is it, so late at night?"

"Supervisor, special telegram."

The telegraph operator's words immediately silenced Shunzi's anger. He took the coded telegram, closed the door, and went back inside to translate it.

His wife neither disturbed nor watched; the two respected each other's fidelity.

After translating the coded message, Shunzi looked up at his wife and said, "You need to go out and contact Bai Yunfei. We need detailed information on the number of airdrops and the approximate airdrop area so we can make food purchases."

Without saying a word, Long Yumei changed into Miao ethnic clothing and left the airport under the cover of night.

A few miles from the airport, there is a place called Shiwanping, where a battle had recently taken place. A part of the Third Red Army defeated a joint attack by local armed forces and secured control of the area.

That was also the location of a secret liaison point.

Long Yumei quickly arrived there and reported the situation through the local liaison officer.

In the middle of the night, Bai Yunfei, dressed in a long robe, arrived at the rendezvous point.

Upon meeting, Shu Zhitao, using the alias Bai Yunfei, said seriously:

"Your identity is special, and the organization requires you to keep it as secret as possible and not to act rashly. Remember, if my contact is lost, you will be the other line to restore contact with Taishan Airlines."

“I understand. Shunzi sent me here this time. He said he needs detailed information on the amount of food to be airdropped, as well as the approximate airdrop area, so that he can make food purchases,” Long Yumei explained.

Shu Zhitao was stunned: "They're going to airdrop grain into the base area?"

This was a major event, and it was safer to transport grain to the base areas than any other method. You must know that as the Kuomintang intensified its encirclement and suppression efforts, any act of selling or transporting grain to the base areas would be punished as a crime of colluding with the Communists.

This made transporting grain even more difficult, but unexpectedly, Taishan Airlines was willing to transport grain by airdrop.

Thinking about the successful airdrop of bullets, Shu Zhitao couldn't help but feel excited. He quickly told Long Yumei to wait while he went to report to his superiors.

(End of this chapter)