Chapter 217: Negotiations, Er Dongchen Invests Shares, Red Army Airdrop Grain Procurement
After the “Red Head Third Brother” reported, Fang Wen and his entourage were, as expected, allowed to pass.
In the lobby on the first floor, a man in a tuxedo greeted them with a smile.
He introduced himself: “Hello, Mr. Fang. I am the manager of Tai Gu Foreign Firm. Please follow me upstairs to negotiate equity matters with that person.”
“No rush, I haven’t had breakfast yet. I heard Tai Gu Foreign Firm has a chef who can prepare all sorts of delicacies. You can’t possibly let us go hungry, can you?”
Fang Wen said with a smile.
“Yes, yes, let’s go eat something first then.”
The manager led the group into the elevator, heading to the tenth floor.
There, a chef specially hired by the firm prepared a lavish meal.
It could be said that Fang Wen’s preconceived notions about British cuisine were immediately dispelled.
After eating and drinking their fill, Fang Wen didn’t move: “My people won’t be going to the negotiation with me. Are there any entertainment activities arranged for them?”
The manager, suppressing his displeasure, went to report the situation, and subsequently arranged activities for the five bodyguards Fang Wen had brought.
Only then did Fang Wen get up and follow the other party 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 of them, and introduced himself: “Taishan Airlines, Fang Wen. A pleasure to meet you.”
Since he had introduced himself, it was naturally difficult for the other party not to respond.
“Martini from Tai Gu Foreign Firm. A pleasure to meet you.”
“Trian from Tai Gu Foreign Firm. A pleasure to meet you.”
The last person grasped Fang Wen’s hand firmly: “A pleasure to meet you. I am Quan Yuncai. I hold no official position and merely act as a messenger, handling miscellaneous tasks. President Fang’s invitation is truly quite rare.”
The man smiled cryptically, engaging in verbal sparring.
Fang Wen felt no pressure and replied nonchalantly: “You want my family’s assets, and naturally, I’m not willing. It’s already good that I could come.”
“Haha, President Fang, you jest. Please sit, let’s talk it over slowly.”
Quan Yuncai and the two executives from the foreign firm sat down, and Fang Wen also took his seat.
“Speak, how do you want to divide it?”
Quan Yuncai remained silent, allowing someone from Tai Gu Foreign Firm to explain.
“We have spoken with your company’s existing shareholders. The Ministry of Communications is willing to give up their portion of dividend equity, while the Revival Society’s remains unchanged. This means 90% of the shares will be redistributed. Mr. Quan Yuncai’s side will receive 50% of the shares, your shares will become 30%, and we, Tai Gu Foreign Firm, will receive the remaining 10%.”
Fang Wen’s heart pounded rapidly. Even though he was prepared, facing such a division was still difficult to bear.
He said coldly: “You’re just dividing up my company like this? What did you contribute? And what did I get?”
This time, Quan Yuncai answered: “You gain safety. From this point onward, I guarantee you will no longer be wanted, and you can return to China. As for our contribution, with our support, Taishan Airlines will develop better in China. In the future, it won’t be limited to 5 flight paths, but 10, 20, as long as you can manage it.”
Fang Wen sneered: “Do you take me for your pawn? The more I do, the more you earn. What if I refuse?”
Quan Yuncai stood up, opened the door, and motioned for the waiter outside to bring in a bottle of wine and wine glasses.
He poured a glass for Fang Wen and pushed it towards him.
“We have investigated your entire setup. Taishan Airlines is just a shell; without you, this company has no value. Therefore, we must cooperate with you for a win-win situation. If you agree, we will not touch the overseas operations of Taishan Airlines. We will fully support its domestic business. If you want to buy airplanes, we can provide bank loans. If you want to add flight paths, all domestic locations can be supported. Our only requirement is that you continue to manage Taishan Airlines and make it bigger and stronger.”
These words were very candid.
It indicated that they only wanted the domestic business of Taishan Airlines, and they couldn’t touch the overseas operations.
Furthermore, they also understood that they themselves couldn’t manage an airline company, so they could only offer 30% of the shares to entice Fang Wen back to preside over it.
Additionally, although the people behind the scenes had not invested funds, they had opened up bank loan permissions, providing Taishan Airlines with financing channels to facilitate rapid development.
But all of this was still not enough.
Fang Wen touched the bottom of the wine glass and spun it.
“The Air Distribution Branch Company is mine, you cannot touch it.”
Regarding the Air Distribution Company, Quan Yuncai and the two senior executives from Tai Gu Foreign Firm discussed.
Currently, the Air Distribution Company’s operations in China are mainly concentrated in five cities. Although the business is booming, the actual profits pale in comparison to those of an airline company.
If giving up this interest would lead to a successful negotiation, it wasn’t entirely impossible.
Immediately, Quan Yuncai replied: “Agreed.”
Fang Wen’s demands did not stop there: “The company’s management and rules and regulations must remain unchanged. Everything as it is, you cannot send people into the company to affect my work.”
“No.” The three refused simultaneously.
Quan Yuncai replied: “We can refrain from sending people to other departments, but our personnel must be involved in the Finance Department. Otherwise, if you manipulate the accounts with certain items, our dividends will be reduced.”
This person was much more astute than the previous “White Gloves.” Fang Wen pondered the negotiation outcome, considering whether to agree.
Through this negotiation.
The controlling stake in Taishan Airlines Domestic Branch changed hands, and he became the second largest shareholder.
However, the reduction in equity only affected dividends.
The company’s personnel were still under his control.
It could be said that he still effectively controlled the domestic company and also had access to large, low-interest loans.
Apart from changes in his status and dividend rights, the losses didn’t seem significant.
Fang Wen couldn’t help but be curious, whose front was this that was so lenient with him.
He asked in a low voice, “I can agree to having your financial staff supervise, but you have to tell me who the person behind you is.”
While Quan Yuncai hesitated, Fang Wen was not in a hurry. He picked up his wine cup and leisurely drank.
After a while, Quan Yuncai poured some wine onto the table and used the liquid to outline the shape of an ear.
Fang Wen understood.
He raised his cup, signaling the confirmation of this negotiation.
The smooth progress surprised Quan Yuncai. After they clinked glasses and drank, he asked.
“Don’t you feel any resentment? If I were you, I’d throw a tantrum and delay making a decision for a month or two.”
Fang Wen smiled, “I do feel resentful. If you are willing to compensate me, help me contact domestic universities. I want to recruit a group of people from these universities.”
Quan Yuncai was cautious, “What do you want to do?”
“Build airplanes. I need engineering talents who can understand charts and data, and also perform actual operations,” Fang Wen replied.
“You want to build airplanes?” Quan Yuncai couldn’t believe it, nor could the people from Tai Gu Foreign Firm. They all dismissed it as Fang Wen’s wishful thinking. China was in ruins and rebuilding, with nothing to boast about except tung oil, silk, tea, and ceramics. With such a foundation, could they build good airplanes?
Perhaps, like those planes built domestically a few years ago that could flap their wings a few times but had no practical use.
They didn’t believe Fang Wen could succeed; they even wanted to see him make a fool of himself.
However, they had to maintain appearances. For this reason, Quan Yuncai agreed to help Fang Wen with his request to recruit recent graduates from various universities.
The negotiations in Hong Kong were successfully concluded. Quan Yuncai became the major shareholder of the company, but Fang Wen’s losses were not significant.
Even the new major shareholder was eager to expand the business of Taishan Airlines China Branch.
This matter could not be rushed. Fang Wen and his team, who had successfully opened numerous flight paths before, had already begun preparations for an investigation.
Another reason for the delay was the procurement of rice from South Asia.
Shu Zhitao, a Red Army Liaison Officer using the alias Bai Yunfei, could purchase grain through Taishan Airlines’ channels, which indicated their urgent need for food.
For this reason, Fang Wen did not return to China after the negotiations but flew directly to South Asia.
Late August 1934.
The Shrike Hao landed again at the French military airport.
Greeting him were not only the Airport Commander but also Fang Shouxin, Shopkeeper Liu, Sun Debiao, and Kuang Anming.
“Brother-in-law,” Kuang Anming spoke first.
“Haven’t seen you for a year, and you’ve grown a beard,” Fang Wen said with a smile. Kuang Anming had actually grown a beard and no longer looked like the fair-faced scholar he once was.
“I participated in demonstrations in France and attended a meeting of the French Communist Party,” Kuang Anming replied in a low voice.
His brother-in-law had become a progressive. Fang Wen couldn’t help but caution him, “Don’t mention any of these things to anyone when you return to China, not even your sister. I’m afraid she’ll worry.”
“Understood, brother-in-law. I won’t say a word,” Kuang Anming replied earnestly. Clearly, the experiences of the past year had matured him.
After this brief interlude, everyone went to the dormitory at the airport. After seeing off the Airport Commander, Fang Wen began to inquire about the situation regarding grain procurement.
Shopkeeper Liu spoke first, “This place is practically a treasure land. They can get three harvests of paddy a year. The annual output is enough for them to eat for several years, so there’s no shortage of grain.”
Sun Debiao added, “In our northern China, we only get one harvest. Some southern regions, with suitable climate and ample rainfall, get two harvests. My goodness, here the seasons are unchanging, and there’s rain every season, so they get three harvests without doing anything.”
However, Fang Shouxin explained the situation from another perspective, “We’ve inquired about the business of trading grain. There are multiple parties involved here, mainly two types: Nanyang rice merchants and Guangzhou and Hong Kong rice merchants. There’s a saying among Chinese Merchants engaged in the rice business: ‘Rice is the main commodity in Nanyang trade; without capital in the tens of millions, it cannot be done.'”
“Oh, why is that said?” Fang Wen asked.
Fang Shouxin continued to explain, “Most local farmers are not good at management. After the paddy harvest, they send their paddy to rice mills for sale, and those rice mills are established by rice merchants from various regions. Large rice mills can process 500-1000 tons of rice daily. Just the processing and transportation require a lot of manpower, as well as large storage warehouses. Furthermore, purchasing paddy requires substantial capital. In addition, the rice business is a long-term undertaking. Rice merchants also provide loans to farmers and purchase farming supplies for them, ensuring that farmers will continue to sell their grain to the same rice mill in the next season.”
As he listened, Fang Wen couldn’t help but look at Fang Shouxin.
Indeed, Fang Shouxin had worked in the Fang family for 20 years, rising from employee to shopkeeper. He was an expert in this area.
After Fang Shouxin finished speaking, he asked, “Uncle Fang, how do you think we should handle this matter most appropriately?”
“Few rice mills sell their products externally. As soon as they load the ships, they are guaranteed to make a profit, so we can’t get their goods. Building a rice mill would take too long. We can only collect grain from individuals. Every household here has enough stored grain, and they will sell if the price is right,” Fang Shouxin replied.
“What acquisition price can they accept?” Fang Wen continued to ask.
“0.5 francs per kilogram, which is one mao more than the normal purchase price,” Fang Shouxin responded.
Fang Wen immediately began to calculate in his mind.
With the recent rise in silver prices, there had been some changes in the exchange rate between silver dollars and francs. 1 silver dollar was equivalent to 10 francs.
Domestic rice was approximately 4.5 silver dollars per dan, and a dan was 50 kilograms.
This meant that rice was 0.09 silver dollars per kilogram, which converted to francs was 0.9 francs.
The gross profit has reached 80%.
Fang Wen was surprised that the rice business was so profitable.
However, he was not very interested in this business. His family was in this trade, so he knew very well that this kind of traditional grain business was the most complex.
“Alright, we’ll acquire it at your price. I’ll go back first to get the airplane and the money.”
After communicating, Fang Wen left the French military airport that day and flew to Guangzhou, and then back to Shanghai.
In Shanghai, Kuang Mingzhu had already returned and was preparing clothes and water for him at home.
“You’re back. Can you rest now?”
After washing his face, Fang Wen shook his head: “Not yet. The grain procurement needs money, and I need to go over there.”
“How much do you need? I’ll get it.”
“No need. I brought a sum of money back from the United States. There’s 6 million US Dollars, which I haven’t given you yet.”
The amount of 6 million US Dollars startled Kuang Mingzhu. That was so much money!
But she also thought that she hadn’t seen him with this money since he returned. 6 million in banknotes couldn’t fit in just one bag.
She couldn’t help but ask with concern: “Where did you put it?”
“It’s in the airplane, airplane number A3. I’ve already asked Howard to ground and inspect this airplane.”
Even with Fang Wen saying this, Kuang Mingzhu was still worried about so much money being at risk.
At her urging, Fang Wen and she went to the airplane repair area at Shanghai Airport.
There, airplane A3 was parked in the hangar, waiting quietly.
Fang Wen took out his tools and entered the cabin.
With a series of operations, he removed the floor, then used a hard wire to make a hook and pulled out three bags from the hollow gap beneath the floor.
One bag contained 2 million, totaling 6 million US Dollars.
The money was retrieved.
Fang Wen immediately sent a telegram to Xiangxi Airport.
At Xiangxi Airport, in the telegraph room.
This telegraph room was different from those at other Taishan Airlines airports; it only handled receiving Morse code and did not translate.
After receiving the code, the telegraph operator ran with the coded telegram to the door of the new director of Xiangxi Airport, Fang Shun.
After a few knocks, Fang Shun opened the door with annoyance and asked, “Who is it, this late at night?”
“Director, it’s a special telegram.”
The telegraph operator’s words immediately made Shunzi lose his temper. He took the coded telegram, closed the door, and went back inside to translate.
His wife did not disturb him or show any interest in looking. Between them, they respected each other’s loyalty.
After finishing the translation of the coded telegram, Shunzi looked up at his wife: “You need to go out and contact Bai Yunfei. We need the detailed airdrop quantity and the approximate airdrop area for grain procurement.”
Long Yumei said nothing more, changed into her Miao ethnic group clothing, and left the airport under the cover of night.
A few miles from the airport was a place called Shiwanping. A battle had occurred there not long ago, where a unit of the Red Third Army had defeated the combined attack of local armed forces, establishing regional control.
That was also the location of the secret liaison point.
He is very much against this.
In the middle of the night, Bai Yunfei, dressed in a long gown, arrived at the rendezvous point.
Upon meeting, Shu Zhitao, who was using the alias Bai Yunfei, said sternly:
“Your identity is special. The organization requires you to maintain secrecy as much as possible and not act rashly. Remember, if my line is broken, you are the other line to re-establish contact with Taishan Airlines.”
“I understand. Shunzi sent me this time. He said we need the detailed airdrop quantity of grain and the approximate airdrop area for grain procurement,” Long Yumei explained.
Shu Zhitao was stunned: “They want to airdrop grain to the base area?”
This was a major matter, and it was safer than transporting grain to the base area by other means. With the Kuomintang’s encirclement and suppression efforts intensifying, any act of selling or transporting grain to the base area would be punished as aiding the Communists.
This made transporting grain even more difficult, but they didn’t expect Taishan Airlines to be willing to transport grain via airdrop.
Thinking of the successful airdrop of bullets, Shu Zhitao became excited. He quickly asked Long Yumei to wait while he went to report to his superior.
