However, there is another weakness: Nanyang has a large territory, nearly 30,000 square kilometers, and a large population. With so many people migrating westward, the number has long exceeded ten million, including a significant proportion of intellectuals and workers.
There's no shortage of workers or factory machinery, but a lack of essential raw materials, such as steel…
However, while Nanyang lacks materials, the north does not... As far as he knew, although the north was barren on the surface, it was full of treasures underneath, with no shortage of coal, steel, or oil. Moreover, further north in northern Shaanxi were Ordos and Baotou, both of which also had countless energy and mineral resources buried underground.
Not only in northern Shaanxi, but also in the Shaanxi-Gansu-Ningxia Border Region, although grain production is not high, there are many good things buried underground, such as the Yumen Oilfield now controlled by the government, and the area in Gansu with its excellent iron ore, which are all excellent raw material bases.
The north was responsible for raw materials, while Nanyang was responsible for production; the collaboration was seamless.
After the two sides communicated, the North was naturally very happy. However, oil fields, metal mines, and coal mines were all things that people envied, especially since they were in the hands of the North. Could the Guo family really stand by and watch?
Ultimately, whether or not it can be defended depends on military force.
Coincidentally, the weapons Li Mu had procured began to arrive one after another. Whether for the purpose of resisting Japan or for laying the foundation for the country's industrialization, strengthening the northern frontier was essential.
Li Mu directly allocated 100,000 Mauser 98k rifles, 2,000 grenade launchers, and a batch of M2 heavy machine guns, Czech light machine guns, mortars, howitzers, etc., and sent them over.
Along with it, two gun production lines, three bullet production lines, one mortar production line, and two grenade production lines were also sent to bolster the war potential and self-sufficiency capabilities of the north.
Given the quality of the troops in the north, with these weapons and production lines, even if we can't drive away the Japanese invaders and resist the threat from the Kuomintang government, it wouldn't be a problem to take over control of parts of Shaanxi, Gansu, and Ningxia from the Ma family in the northwest.
.........
Chapter 456 Industrial Foundation
Two months later, astonishing news came from the north: the exploration team had discovered two oil fields and several large metal mines in the Far East, only a hundred or two kilometers away from the Kwantung Army's base. If troops were dispatched, they could take them in a day.
Faced with the oil fields right before their eyes, which made the Japanese drool, the Kwantung Army began to stir, eager to send troops to occupy them. The Russians also became nervous and dispatched troops to the areas where the oil fields and metal mines had been discovered.
For a time, the domestic war was at a standstill and stagnant, but in the Manchurian region, Russia and Japan deployed troops to the border, tensions were high and the smell of gunpowder was getting stronger.
This is exactly the situation Li Mu wanted to see; otherwise, why would he have gone to such lengths to expose these oil fields and metal mines?
Domestically, Li Mu continued to launch fighter jet sorties at night to bomb any small Japanese airfields and aircraft that appeared within the combat radius.
Not only aircraft, but any exposed artillery and armored units of the Japanese army are within his strike range. In just the last few months, he has destroyed hundreds of Japanese artillery pieces and hundreds of armored vehicles, not to mention countless other military supplies.
This caused a climate of fear and unease among the Japanese forces in North and Central China. They became increasingly cautious, keeping their artillery and armored units well hidden except in important battles, for fear of being exposed and bombed one day.
Without air power and lacking heavy firepower, the offensive became increasingly weak, and the domestic battlefield could only remain in a stalemate.
After the standoff in northern Manchuria, Li Mu, after careful consideration, reduced the frequency of bombing. As long as it ensured that Japan no longer had any intact airfields or aircraft in North and Central China, that was sufficient.
Try to get the little notebook to focus its attention on the north and concentrate on fighting the big Mao.
Li Mu then began to accumulate resources, using the huge amount of money generated from selling medicine to purchase various foreign machines and equipment on a large scale, in order to build a complete basic industrial system in the Nanyang area as much as possible.
In northern Shaanxi, along with the oil extraction and refining equipment, Li Mu also hired a group of technical personnel to travel to the Yanchang Oilfield to carry out large-scale development work.
Not only oil fields, but according to his memory, he also targets large-scale high-quality coal mines and iron mines in the Shaanxi-Gansu-Ningxia border region, as well as other high-quality mineral resources. Currently, he is cooperating with the north to conduct exploration.
The results were naturally gratifying, with one piece of good news after another, and large mineral deposits being discovered.
Therefore, in addition to providing a large number of weapons, a large amount of supplies and equipment also poured northwards. The north already had an extremely strong talent pool, especially in the military field; it was only the lack of supplies and weapons that had prevented it from developing and expanding.
The arrival of so many weapons, supplies, and equipment allowed the potential of the north to be rapidly unleashed, resulting in significant progress in both economic and military strength.
With the strength secured, and given the tense atmosphere in northern Manchuria, it was best not to provoke the Japanese, lest it draw their attention away.
Therefore, they had to target another enemy.
In the Northwest region, besides the Ma family, there is no one else with the greatest enmity with the north. If you want to develop these oil fields, coal fields, and metal mines peacefully… the Ma family is an obstacle you can't avoid. Who knows, one day they might covet these mines and send troops to forcibly seize them.
And so, they quickly found a target to test their skills.
Li Mu strongly supported this. With the Ma family eliminated, the Northwest region was now under the control of the North, and the various resource mines built there were secured, giving Nanyang a strong rear base.
Li Mu sent another 1,500 grenade launchers, and 2,000 Sten submachine guns, which had only been in mass production for a few months.
In addition, hundreds of light trucks, dozens of tanks, and a large quantity of military supplies, including sugar and compressed biscuits, were also sent over.
In addition, with the 100,000 Mauser 98k rifles, various light and heavy machine guns, and mortars that were sent as support some time ago, the war potential in the north is gradually being unleashed.
When equipped with the right weapons, this is one of the most powerful armies in the world, especially in terms of fighting spirit and morale, which is unmatched worldwide.
Thus, the seemingly powerful Ma family, the so-called Northwest Kings, truly armed themselves in the north and mobilized 70,000 to 80,000 troops at once for a large-scale encirclement and suppression.
In just two or three months, the Ma family, which had dominated the Northwest for many years, vanished without a trace.
With all the territory falling into the hands of the North, its strength grew increasingly solid, and the development of various oil fields, coal fields, and metal mines could finally begin.
With the arrival of a large number of instruments and machines purchased by Li Mu in the north, the mining operations of several large oil fields, coal fields, and metal mines officially got on track.
With a large supply of raw materials and energy, factories in the Nanyang area finally achieved mass production and self-sufficiency in some industrial products.
It complements the advantages of the north.
In addition, in the eastern Henan region, the scale of the Anti-Japanese United Army has also expanded rapidly with the support of Li Mu's large amount of logistics and weapons. Its total strength now exceeds 150,000.
In the north, a large number of enthusiastic young people and propaganda personnel were also dispatched, and a complete grassroots organization was basically established throughout the eastern Henan region. By using the strategy of encircling the cities from the countryside, the entire eastern Henan region was brought under complete control, and the rule of the Guo family here can be said to have been disintegrated.
However, the entire eastern Henan region is a vast plain with a large population. Coupled with natural disasters and man-made calamities, famines often occur here, and many goods and supplies are extremely scarce.
Although the Anti-Japanese United Army tried its best to maintain the local people's livelihood and develop the area into a solid revolutionary base, it still seemed somewhat powerless.
Li Mu did frequently transport some supplies and food there, but it was unlikely that he could develop the area and maintain a good standard of living with just these supplies.
The Anti-Japanese United Army now occupies a vast territory, including not only eastern Henan, but also parts of Xinyang near the Huai River in southern Henan, parts of Xinxiang along the Yellow River in northern Henan, parts of Heze in southern Shandong, and parts of Bozhou and Fuyang in northern Anhui... spanning three provinces with a total population of over 20 million.
With such a large area and such a large population, much of which is still within the Yellow River floodplains, it's not easy to develop the economy and improve people's livelihoods.
Li Mu did have some ideas. In the past year, since the opening of his private air route, he had made a lot of money through penicillin and had also transported a large amount of supplies and food back to China.
The weapons and various machinery and equipment needed for building factories were for his own use, needless to say. The vast quantities of grain, various domestically scarce commodities, and military supplies flowed into the market through Muwu Trading Company and other channels, earning him enormous sums of money.
Now, he has all these huge sums of money in his hands, and as he continues to ship various supplies back to China, more and more money is accumulating in his hands. It can truly be said that the more he spends, the more he gains.
Although Li Mu only accepted gold and foreign exchange for some scarce military supplies, the domestic military supply market was limited after all. With the air routes opened, the round-trip time was greatly shortened, and he could meet the domestic market demand by making one or two trips a month.
On the contrary, the civilian market, including food, medicine, oil, sugar, meat and other scarce commodities, has a very large market.
However, these items could not be traded in foreign exchange and gold like military supplies. The amount of foreign exchange and gold in the country was limited, and ordinary people didn't possess these; they held mostly silver dollars and legal tender.
As a result, these supplies earned Li Mu a huge amount of silver dollars and legal tender. In particular, Li Mu had tried his best to use and collect as little legal tender as possible, but he still managed to accumulate more than 50 million legal tender.
This was even with him constantly exchanging legal tender for silver dollars, gold, and foreign currency from other places through the Muwu Trading Company.
Otherwise, it wouldn't just be over 50 million; he would hold even more fiat currency.
With so much legal tender, if it wasn't spent quickly, it would only depreciate if left in hand. Now it was 1939, and the depreciation of legal tender had already begun to accelerate; holding onto it was simply not worthwhile.
It's better to spend the money, even if it's just to do something meaningful.
Given that he had more and more money in his hands, and that wealth only has value when it circulates, Li Mu had begun to improve the treatment of his subordinates. For example, even ordinary soldiers in the security army received eight silver dollars a month in military pay, and officers received even more. High-ranking officers could live a relatively wealthy life just from their military pay.
The workers employed by the company's various factories and major projects have seen a comprehensive improvement in their treatment, with salaries increasing by about 50% and various benefits gradually catching up.
Nowadays, compared to the various private enterprises in Nanyang, being able to enter a factory under Li Mu's name is definitely something to be envied.
Not only are the welfare benefits of various factories and construction sites increasing, but the operating funds of major universities that have moved to Nanyang are also increasing significantly.
The funding Li Mu allocated to them this year is 50% higher than last year, which can be described as sufficient.
These universities also frequently exchange ideas with other universities that have relocated westward, and have now become the envy of all other universities. In fact, many universities have recently been in discussions with Nanyang about the possibility of relocating their campuses there…
After all, with Japan's air force destroyed and its offensive capabilities significantly hampered across China, the Nanyang region was unlikely to be engulfed in war. Furthermore, its excellent security, low prices, thriving commerce, and highly desirable living conditions made it very attractive.
Even the Southwest Associated University in Kunming was tempted. The conditions there were too harsh. Not only was the funding for running the school dwindling, but the conditions were also extremely poor. The students' dormitories were basically thatched huts, and the classrooms were just covered with a sheet of iron.
Currently, we are actively communicating with them. After all, Kunming is also the territory of warlord Yunlong, and its financial resources are limited, so its support for them is also limited. It is a normal choice to move to a place with better conditions.
Li Mu naturally welcomed this. The Nanyang region will be building a large number of factories to improve the industrial system of various sectors, which will require a large number of talents, especially universities that cultivate high-end talents.
Zhejiang University, which is still on its westward relocation route, is also in contact with Nanyang. Since the fall of Hangzhou two years ago, Zhejiang University has been relocating westward, stopping and starting along the way, and continuing to operate as it goes.
Ultimately, they traversed six provinces in southern China, covering a distance of 2600 kilometers, and arrived in Zunyi, Meitan, and Yongxing in Guizhou in 1940. They persisted in running the school until the victory of the War of Resistance against Japan, after which they returned to Hangzhou.
Today, while they are still running schools and relocating westward, they have heard that Nanyang has such good conditions, is far from the war, and strongly supports universities, and they are also tempted.
We are actively communicating with Nanyang...
To support their education and to show his sincerity, Li Mu has donated one million yuan to each of the two universities to alleviate their difficulties.
On the other hand, with over 50 million yuan in legal tender in hand, as various goods were sold, even though less legal tender was accepted and mostly silver dollars were accepted, legal tender was still flowing into his hands in a steady stream.
The exchange of legal tender for gold, foreign exchange, and silver dollars through Muwu Trading Company became increasingly difficult, as everyone realized the devaluation of legal tender and was unwilling to accept more.
The situation in Nanyang is somewhat better. Last year, Li Mu began to promote silver dollars and gradually reduce the use of legal tender. For example, silver dollars and grain coupons are used to pay military salaries and wages, and legal tender has long been discontinued.
Following the example set by those above, in the Nanyang region today, the market for legal tender has shrunk repeatedly, and people have basically started using silver dollars to combat the inflation and devaluation of legal tender.
The various goods sold in the Nanyang area are mostly returned in silver dollars. However, merchants from other places who come here to purchase goods often use legal tender. This will be restricted in the future, and a complete de-fiatization process will begin.
Li Mu had also considered how to use the more than 50 million yuan in legal tender. He decided to do more things that would benefit the people, help preserve the nation's vitality, lay a solid foundation for future full-scale industrialization, cultivate more talent, and do what he could.
Fortunately, the large area controlled by the Anti-Japanese United Army, mainly in eastern Henan, was an excellent target. The people there were poor, but the population was large and more receptive to the ideology. This area could be transformed into a revolutionary demonstration zone.
As for the security of this area, there is no need to worry. Not to mention that the Anti-Japanese United Army is extremely powerful now, with Li Mu taking action behind the scenes, even if the Japanese invaders attack eastern Henan again, they will not achieve anything and may even suffer a defeat and lose a large area of occupied territory.
After communicating with the north, they were naturally overjoyed, as this was indeed a good thing for the country and the nation.
Li Mu implemented universal basic compulsory education in Nanyang, which only included primary school and lasted for four years. His aim was to enable people at the bottom of society to learn to read and write and avoid becoming illiterate.
Through selection, a small number of outstanding students go on to secondary school for further studies. After selecting the best of the best, the most outstanding group goes to university.
There's no way around it. These days, given the current conditions, even if Li Mu had the money to build a large middle school and recruit more students, there wouldn't be enough qualified teachers.
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