Republic of China: Ace Pilot

The arms deal continues to proceed at a rapid pace.

During the day, military trucks shuttle back and forth in the Port of Los Angeles, driving into the port area one after another.

A shipment of this scale could not be concealed, and people of all kinds in Los Angeles were trying to find out what was going on.

Three days later, the news that "a large-scale arms deal was taking place at the Port of Los Angeles" spread like wildfire throughout the city.

Bartenders in bars, sailors and ship owners in the harbor, and even office workers would gather together during their lunch breaks to speculate about the situation.

However, amidst these rumors, no one knew who the buyer was, nor where the weapons were ultimately destined for.

But in well-informed circles, such as local Los Angeles gangs and state legislators, they can glean some of the truth through clues in the port area or by inquiring through their own connections.

The most obvious signs were the cargo ships moored in designated berths, all bearing the "Taishan International" logo. The ships were enormous, and the crew and cranes on deck were ready to go. Anyone with a discerning eye could guess that Taishan International was the ultimate carrier for such a massive arms deal.

The news quietly spread to New York like an undercurrent. At the New York Stock Exchange, the stock price of Taishan International suddenly fluctuated – the previously stable stock price suddenly rose slightly after the afternoon opening, and the trading volume nearly doubled compared to the previous day.

This unusual activity quickly reached Fang Wen's ears. He was checking the supply list with Lieutenant Colonel Le Maire when he heard this. He was slightly taken aback, then chuckled and thought to himself that he had overlooked the connection at the capital level.

He immediately stopped what he was doing and made two long-distance calls, asking Lin Shuiwang, the manager of Taishan International in New York, and Zhao Jiu, the manager of Taishan Amusement Park in Las Vegas, to come to Los Angeles immediately to discuss the specifics of capital operation.

Long-distance calls in this era were very troublesome, requiring manual transfers via a switchboard. A long-distance call from Los Angeles to New York would require several manual transfers.

The following afternoon, Lin Shuiwang and Zhao Jiu took a plane and rushed to the suite at the Biltmore Hotel where Fang Wen was staying.

In the living room, Fang Wen asked the two to sit down first and slowly explained his plan:
"Lin Shuiwang sent a telegram yesterday mentioning the sudden rise in Taishan International's stock price. This was indeed my oversight. Taishan International undertakes such a large-scale arms transport, so its financial statements this year must be impressive, and its stock price will rise accordingly. Not to mention, the US stock market is currently very sensitive to war dividends. Anything related to war business that can bring profit growth will be highly sought after by funds. Therefore, I want to carry out a short-term capital operation."

Lin Shuiwang and Zhao Jiu listened attentively, each taking out their notebooks.

Fang Wen continued, "According to my plan, Shui Wang, after you go back, don't release any related information to any media or securities institutions. Keep quiet. In the quarterly reporting period one month later, officially release the announcement that Taishan International has undertaken a large-scale arms transportation order, and fully release the positive news. Before that, Zhao Jiu, use the funds from Taishan Amusement Park to quietly acquire a large number of our company's shares. When the announcement is released and the stock price soars, then cash out in batches."

After he finished speaking, he looked at his two subordinates.

Zhao Jiu frowned, a troubled look on his face: "General Manager, this is a bit complicated. After Taishan Amusement Park was acquired, all the funds were incorporated into Taishan International's financial statements, and now we can no longer use our funds as we used to."

Upon hearing this, Fang Wen gently patted the sofa armrest, lost in thought.

His strategic plan was to have Taishan International acquire Taishan Amusement Park, thereby increasing the market value of this US-listed company.

However, market value cannot be easily converted into cash, and because Taishan Amusement Park has become a listed company asset, it can no longer freely control the company's cash flow as before.

This is indeed a bit of a problem. The arms deal wasn't completed, and they couldn't get their share of the difference in price and shipping fees. It was also inconvenient to bring funds from Asia to the United States.

Should we ask a conglomerate for help?

Fang Wen didn't want to do that; not everything had to be related to conglomerates.

He quickly came up with a solution.

“Zhao Jiu, when you get back, go find those gangs from all over the country that run the casinos at Taishan Amusement Park: the Capone family in Chicago, the Gambino family in New York, and the Cohen gang in Los Angeles. These people make a fortune off our casinos and have been wanting to strengthen their ties with us, but haven’t found a suitable opportunity. This time, you act as a go-between and tell them to put money into the business and we’ll handle the purchase of Taishan International’s stock. I guarantee they’ll get a fixed 30% return.”

"30% a month? Isn't that too much?" Zhao Jiu asked.

Fang Wen laughed and said, "That depends on how much we can earn. If we earn a lot, 30% is nothing. Let's just give them a taste of the sweetness."

The two then got up, said their goodbyes, and left to begin preparations.

Five days later, with the funds ready, Zhao Jiu personally led a group of his men to New York.

After arriving in New York and having brief contact with the local gangsters, the group went to Wall Street.

These subordinates, each carrying a briefcase, entered different brokerage firms and opened personal accounts.

Subsequently, they had brokerage firms buy stocks from the exchange every day, including Taishan International.

Unlike other stocks that can be bought and sold, Taishan International's stock can only be bought and never sold, resulting in a continuous accumulation of shares in the account.

at the same time.

The transport of firearms and ammunition is nearing completion, with 850 military trucks arriving one after another, filling the warehouse to capacity.

After the last batch of rifle ammunition was moved into a special warehouse and double-sealed, convoys carrying aircraft parts, complete tanks, and fuel arrived one after another.

Unlike firearms and ammunition, which are neatly packed in boxes, the M2A4 light tank is fixed to a specially made flatbed trailer. The body is covered with a thick waterproof tarpaulin, with only the edges of the tracks exposed. Soldiers keep watch along the way to prevent any accidents from happening.

The oil tanker was already docked at its designated berth. The tanker truck slowly drove to the docking point. The operators, wearing anti-static uniforms, carefully connected the oil pipeline. Aviation gasoline, tank diesel, and machine lubricating oil were slowly injected into the sealed tanker's compartments through the pipeline. Professional personnel monitored the entire process to prevent any potential leaks.

On the other side, on the deck of the cargo ship Hetu, the crane has been debugged and the staff are busy laying anti-slip mats and fixing ropes to prepare for the subsequent hoisting of P-40C fighter jets.

Fang Wen was not in the port area at this time.

Fang Wen led Gong Xiuneng to the Curtiss Corporation's laboratory in the suburbs of Los Angeles.

Ten days prior, Fang Wen's conversation with the general manager of Curtiss at a banquet further solidified his idea of ​​technological cooperation. Taishan Aviation's improved Xiluo aero-engine, after several optimizations, has entered the first tier of piston-type aero-engines, boasting strong power and high adaptability, surpassing Curtiss's mainstream products in performance. However, Taishan's own engine manufacturing plant is limited in scale and has low production efficiency, making it impossible to meet the needs of Taishan Military Industry's large-scale production of fighter jets. This has become the biggest bottleneck restricting its development.

Technological cooperation is beneficial to both parties.

But it seems the general manager of Curtiss doesn't see it that way.

Out of respect for Fang Wen, he summoned the technical director of Curtiss Corporation to hear Fang Wen explain Taishan's aero-engine technology.

After listening to Fang Wen's words, the technical director and general manager of Curtis Company had the same attitude.

“Mr. Fang, it’s not that we don’t trust you, but Curtiss has been deeply involved in the field of aero engines for decades, with countless researchers and a well-established production system. To say that your engines are more advanced than ours is something I find hard to agree with.”

The technical director sat at the conference table in the laboratory, his tone laced with arrogance and skepticism. Several core researchers beside him nodded in agreement, their eyes filled with disapproval.

In their view, Taishan Military Industry is just an emerging force. It is understandable that it has some technological advantages in certain aspects, but it is impossible for it to surpass industry giants like Curtis in core technologies.

Fang Wen did not argue, but simply smiled and said, "Empty talk is useless. Let's speak with facts. I can disassemble the amphibious aircraft engine I brought and send it to you for on-site testing. The data won't lie."

The Curtiss representatives briefly discussed this and indicated that they were interested in seeing what Taishan's aircraft engines were like.

Subsequently, a sleek, silver-gray, modified Shiro aircraft engine was disassembled and transported into the laboratory.

This engine is a core achievement of Taishan Aviation. After multiple improvements, it is not only smaller and lighter, but also greatly optimized in terms of power output and fuel economy.

Curtiss's technicians approached with a dismissive attitude to disassemble and test the equipment. At first, their movements were casual, but as the readings on the instruments kept fluctuating, their initially nonchalant expressions gradually turned serious, and they frowned as they repeatedly checked the data.

"Impossible... How is this possible?" a researcher exclaimed, pointing to the numbers on the instrument panel, his tone full of disbelief. "The maximum power is 12% higher than the latest Pratt & Whitney R-1830 engine we use, but the fuel consumption is reduced by 8%, and the fuselage vibration is smaller, and the stability is far superior to our product!"

The laboratory fell silent instantly. The technical director strode to the instrument and personally checked the data, again and again, his arrogance gradually replaced by shock.

He had been engaged in aero-engine research for decades and had seen countless top-notch products, but he never imagined that a newly emerging Chinese military industrial enterprise could produce such an advanced piston aero-engine.

“Mr. Fang, I was rude.” The technical director put away his disdain and his tone became sincere. “Taishan Airlines’ engine is indeed very advanced. If you are willing to cooperate on this technology, I think our company would be very happy to do so.”

Fang Wen smiled and said, "Really? I also think we can talk, but it's not necessarily a must to cooperate with you."

Seeing Fang Wen's attitude, the technical director immediately went to see the general manager.

Less than an hour later, the general manager of Curtiss arrived in a hurry, his face no longer showing the composure he had during the day, but instead showing urgency and importance.

He walked straight up to Fang Wen, extended his hand, and said sincerely, "Mr. Fang, to use a phrase from your Chinese culture, I was blind to the true value of Taishan Airlines and overlooked its technological strength. Please forgive me. We are willing to seriously discuss the technical cooperation you proposed."

Fang Wen grasped his hand, understanding in his heart that technical strength was the strongest foundation at the negotiating table.

Everyone sat back down at the negotiating table.

This time, Fang Wen seized the initiative: "Actually, the reason I sought cooperation with Curtiss was because I saw your weakness in aircraft engines. Your current main aircraft models still use Pratt & Whitney engines, making it impossible to improve engine performance based on your own aircraft designs. However, by cooperating with us, this situation can be improved, and future aircraft performance will be better, thereby gaining a larger market and more orders."

These words struck a chord with the Curtiss executives.

Curtiss's military fighters were the undisputed leaders in the biplane era. As early as World War I, 6000 JN-4s were produced, along with 1100 HS-2L anti-submarine aircraft, and the Hawk series of fighters were the top exporters.

However, in the era of monoplanes, it was quickly surpassed by other aircraft companies, and its technological advantage was gone.

They also desperately want to get out of this predicament.

In response, the general manager of Curtis asked, "Mr. Fang, how would you like to cooperate?"

Fang Wen explained his plan.

"Taishan Aviation will contribute its technology for the improved Shiro aero engine to cooperate with Curtiss Corporation; Curtiss Corporation will use its well-established production system to manufacture the engine on behalf of the company, and may even cooperate in the development of new fighter jets based on the engine; Taishan Aviation will contribute its technology as equity, without participating in Curtiss Corporation's daily management, but will demand low-cost procurement prices for the engine and the complete aircraft, priority purchase rights, and a share of the profits from the cooperative project."

The general manager and technical director of Curtiss exchanged a glance, quickly weighing the pros and cons of the collaboration. Taishan Aviation's technology was advanced enough to help Curtiss optimize its existing products and widen the gap with other arms manufacturers; while Curtiss's production capacity could solve Taishan Aviation's production capacity problems. The collaboration was undoubtedly a win-win situation.

The only concern is the issue of technology confidentiality.

“Mr. Fang, we strongly agree with the cooperation plan,” the general manager said after a moment’s thought. “However, we need to reach a clear agreement on the issue of keeping the core technology confidential to avoid technology leakage and damage to the interests of both parties. In addition, we need to further discuss the specific figures for the profit-sharing ratio and the purchase price.”

“Of course.” Fang Wen nodded, his tone frank. “We can draft a technology confidentiality agreement on the spot, clearly defining the responsibilities and obligations of both parties. Any breach of contract by either party will result in substantial compensation. As for the profit-sharing ratio and procurement price, we can discuss them gradually, aiming only for fairness and a win-win situation for both parties.”

After consultation between the two parties, the preliminary negotiations concluded smoothly.

Fang Wen and Gong Xiuneng left and drove back to the port area.

Gong Xiuneng asked, puzzled, "Commander, wouldn't it be a waste to give such good stuff to the Americans?"

While driving, Fang Wen smiled and said, "It's worth it. The potential of the improved Shiro has been fully developed. For us, it is a transitional aircraft engine, but it is very useful in wartime. If we go into mass production, we will need to make secondary investments in the new engine later, which is a huge waste. It is better to use American factories, workers, and resources to produce it. Our factories can directly jump to the production line of the new engine."

Gong Xiuneng suddenly realized, "Commander, what's wrong with your brain? You've outsmarted all the Americans!" (End of Chapter)