Chapter 188: 187, Establishing Red Army Trade Routes, Taishan Brand Cigarettes
A letter and a stack of US Dollars.
These two items were packed in an ammunition box that was not fully loaded with bullets.
The colorful US Dollars, the Regiment Commander did not recognize them, he first opened the envelope.
“30,000 bullets, plus a gift of 10,000 US Dollars to tide over the difficulties. If more bullet supplies are needed, contact us.”
The Regiment Commander was excited and took the letter, US Dollars, and some bullets to the Military Department.
Meanwhile, the f.220 executing the airdrop returned to base and parked on the Xiangxi Airport runway.
Airport staff held torches to guide the airplane into the hangar.
After parking the airplane, it was already 4 a.m., Fang Wen and Huo Duanyang, full of fatigue, walked out of the hangar to the house opposite.
Before resting, Fang Wen said: “Tomorrow when Fang Shouxin and the others return, hold a meeting to discuss the division of labor for management between Xiangxi Airport and Yangon Airport.”
Huo Duanyang nodded, yawned, and went into the room to rest.
September 18, at noon.
Fang Wen, who had slept for 8 hours, got up, stretched, and then took out the toiletries his wife had prepared.
He went out to fetch water from the water room.
The water in this water room came from mountain stream spring water, piped down from the mountain through sealed rubber tubes.
The spring water was very cold and could be used for washing and brushing teeth; next to it was a large jar of cooled boiled tea water, and if you wanted to drink, you poured it yourself by removing the stopper.
Finishing washing with the ice-cold spring water was the most refreshing thing in this scorching summer day.
He packed away the toiletries, went out, and walked around the airport, which counted as inspecting the work situation at Xiangxi Airport.
Everything here was orderly; the 100 members of the Security Brigade had already begun their drill.
Under instructor William’s training, they were practicing throwing grenades.
The Security Team was equipped with two models of Mills bombs, No. 5 and No. 23; now they were practicing with No. 23.
When purchasing them initially, Fang Wen saw the grooves at the bottom of the No. 23 Mills bomb and thought they were for wooden handles.
Actually not; the grooves at the bottom of the No. 23 Mills bomb were for attaching the grenade launcher.
But here, there was no such thing, so they simply attached wooden handles to the rear grooves, turning them into more convenient-to-throw wooden-handled grenades.
Fang Wen learned that the Security Brigade members all liked using the wooden-handle throwing method.
Because it threw farther and more accurately; throwing the fist-sized British grenades directly was prone to slipping from the hand, with unstable accuracy and distance.
Therefore, William adapted to the soldiers’ habits and conducted new throwing training.
After inspecting the Security Team’s training, Fang Wen went to the bomb factory and around the airport.
Huo Duanyang had also gotten up by now and was working in the airport office.
Shunzi was commanding production at the bomb factory.
Fang Shouxin had nothing much to do and accompanied Fang Wen everywhere.
While walking, Fang Shouxin brought up Shunzi’s matter.
“General Manager, my Shunzi wants to get married.”
“Really?” Fang Wen stopped: “He’s of age, you arrange it for him.”
“He chose her himself, a Miao girl from a village 30 kilometers northwest of the airport; Shunzi has his eye on her and won’t change.” Fang Shouxin explained.
“Any problems?”
“Yes, that girl’s family works for the Communist Party, and I hear they have strict discipline there; I don’t know how to handle it.”
“Isn’t it just going to her home to propose?” Fang Wen laughed.
“Her mom and dad say to listen to the girl, and the girl says to listen to the organization.” Fang Shouxin replied helplessly.
So that’s how it was; Fang Wen didn’t know how to solve this problem either, so he decided to hold the work meeting first.
Immediately, Huo Duanyang, Fang Shouxin, and Shunzi attended the meeting.
The meeting had only one agenda: how to keep the relationship with the Red Army confidential.
This was a very serious issue; once leaked, it would be a disaster for all involved, and for Taishan Airlines.
Fang Wen said: “The matter with the Red Army is currently known only to our four people. I hope everyone keeps it strictly confidential and does not leak it; everyone knows the consequences, no need for me to say more.”
Huo Duanyang, Fang Shouxin, and Shunzi nodded, indicating they understood.
Huo Duanyang asked: “General Manager, do you plan to send all the bullet production line output to them?”
This was also something Fang Wen had considered.
Cost of 1.5 cents per bullet, monthly production capacity of 100,000 bullets was just 1,500 US Dollars in cost; even if the production line potential was fully developed later, doubling capacity to under 5,000 US Dollars in expenditure, Taishan Airlines could bear it.
But giving it away indefinitely would seem too suspicious.
It would be better to build a trade system with the Red Army, giving them economic self-sufficiency, which would be healthy development.
In this era, there were industries the Red Army could easily access that could generate high profits.
That was the tobacco business.
He remembered seeing reports online in the past; during the War of Resistance, the New Fourth Army had run a tobacco factory and made a lot of funds.
And that was doing tobacco business domestically.
Fang Wen had better conditions; not only could he sell domestically, but also take the tobacco business overseas, from South Asia to Europe.
As long as the Red Army base area could provide large quantities of high-quality cigarettes, these cigarettes could be sold domestically and overseas through Taishan Airlines’ distribution channels.
He shared part of this idea and instructed Fang Shouxin to handle it.
Fang Shouxin was very enthusiastic about this; he wanted to meet Shu Zhitao, discuss business, and by the way, ask about his son’s marriage.
Thus, after the meeting ended, he couldn’t wait and pulled his son to leave the airport.
Fang Shouxin took Shunzi and five Security Team members, disguised again as traveling merchants, and headed to the village 30 kilometers northwest.
There, Shunzi knocked on the door of his beloved Miao girl’s home.
The Miao girl opened the door, saw Shunzi, and immediately blushed: “What are you here for?”
“I, I’m looking for…” Shunzi was a bit incoherent.
The Security Team members behind couldn’t hold back: “He’s looking for a wife.”
“Pah, yellow teeth and stinky mouth, what business is it of yours.” The Miao girl glared angrily at the Security Team member.
Shunzi hurriedly explained: “Don’t listen to his nonsense, we’re looking for Brother Shu, we have serious business.”
This time, the Miao girl withdrew her glare from the Security Team member, said something to her family, and went out.
By the afternoon, she brought Shu Zhitao back; Fang Shouxin and Shu Zhitao talked business in the inner room.
“The bullets are okay?” Fang Shouxin asked.
“We tested them in guns, much better than our reloaded bullets, basically no duds. Even if you hadn’t come to find me, I would have gone to the airport to find you.” Shu Zhitao replied; from his eager expression, it was clear the Red Third Army approved of this batch of bullets’ quality.
He asked again: “Thank you for the bullets and US Dollar support. I want to ask about what the letter left in the airdrop said: what about subsequent bullet supplies?”
Fang Shouxin took out several packs of cigarettes from his bundle; these cigarette brands were all popular in the United States.
Camel, Lucky Strike, Chesterfield, and Marlboro.
“If you can make cigarettes with the same taste, we’ll acquire as many as you produce; the profits generated can be directly exchanged for bullets or silver dollars.”
Shu Zhitao was stunned; this was something he hadn’t thought of.
The other party actually wanted to do tobacco business with the Red Army.
Economy was currently a huge problem facing the Red Army.
Under the encirclement by surrounding Kuomintang army and local militias, it was hard to establish economic order, let alone income-generating industries.
Now, the other party provided bullet supplies and also sources of income.
This was too important.
Shu Zhitao himself was a heavy smoker, and there were many in the base area planting tobacco, as it was the best stimulant they could get.
But growing and smoking it themselves produced no economic value.
If they could meet the other’s requirements, the base area would have money! And bullets and equipment!
Now the question was whether they could make tobacco that met the requirements.
Shu Zhitao put away the packs of cigarettes, stood up and said: “I’ll report this back; if we succeed, we’ll bring it to the airport for you to see.”
Just as Shu Zhitao was about to leave, Fang Shouxin held him back: “Friend Shu, don’t rush off, I have one more thing.”
“What is it?” Shu Zhitao asked in surprise.
“My son likes your intelligence agent Long Yumei; I want to help him propose, but I’m afraid you won’t agree.”
“This matter? We have free love; as long as Comrade Long Yumei is willing, no one will stop her.” Shu Zhitao laughed.
Fang Shouxin breathed a sigh of relief, but he didn’t understand free love, so he chatted more with Shu Zhitao to figure it out.
For the cigarette trade cooperation with the Red Army, Fang Wen thought it would take some time to see results.
After all, figuring out the manufacturing process of a good cigarette was not easy.
But he underestimated the Red Army’s collective creativity.
Once they realized cigarettes could create economic value and exchange for bullets, how to make tobacco similar in taste to those foreign cigarettes became a very important matter in the base area.
They quickly discovered the difference between their roasted tobacco and those foreign cigarettes.
The Red Army’s roasted tobacco was mainly for quick processing to avoid insufficient time for sun-drying after harvest.
Roasted tobacco was strong, stimulating, more suitable for the smoking soldiers than sun-dried or air-dried tobacco.
The foreign cigarettes Fang Wen provided were different, not made from the same tobacco.
These cigarettes had composite flavors, more commercialized, to suit a broader user base.
Among these blended tobaccos were strong roasted tobacco, as well as sun-dried and air-dried types; mixed together, they formed different cigarette tastes.
Although they didn’t perfectly imitate any foreign bestseller, they developed a uniquely flavored cigarette.
This cigarette was mellow, with body, and long-lasting taste.
Something never seen on the current market.
After successful development, Shu Zhitao brought the first batch of trial products to Xiangxi Airport.
After delivering the cigarette type, he left; Fang Wen piloted an airplane to Xiangxi Airport to pick it up and brought it back to Shanghai.
Fang Wen didn’t know how good this batch of cigarettes was, so he specially invited a group of tobacco connoisseurs and held a tasting session.
The invitation said “Taishan Brand Cigarettes, initial sample trial smoke.”
Among these people were smokers from all walks of life; after smoking the Taishan Brand cigarettes, reactions varied.
Not everyone liked them, heavy smokers didn’t, but the remaining 70% gave good reviews.
Seventy percent approval was broad data, enough to prove this cigarette had market potential.
Immediately, the Red Third Army tobacco trade officially began.
Large bundles of cigarette sticks were carried by mules and horses from the base area to the trading point outside the airport.
After receiving the cigarette sticks, that night or soon after, bullets would be airdropped to the designated location.
Early October 1933, Taishan Airlines completed its first cigarette trade.
Subsequently, at nearly 10 cigarettes per bullet price, 40,000 bullets were exchanged for 400,000 cigarettes.
These cigarette sticks still needed packaging before sale.
Immediately, a tobacco processing factory was established outside Shanghai Airport, and tenders were placed with Shanghai’s paper shell and printing factories for cigarette case paper production.
Two specifications: cigarette cans and cigarette cases.
The recruited workers only needed to do two things: pack cigarettes into cans and cases, then seal them.
Taishan Brand Cigarettes were thus made.
The cans were 50 sticks per can, sold for 50 cents silver dollar; now the US Dollar exchange rate was 1 US Dollar to 3.5 silver dollars, equivalent to 0.14 US Dollars.
The cases were 20 sticks per case, sold for 20 cents silver dollar, equivalent to 0.06 US Dollars.
Roughly 0.28 cents per cigarette; if successful, it would be a win-win long-term trade for the Red Army and Taishan Airlines.
Finished cigarettes were out, now for sales.
These cigarettes were directly stocked to domestic airport aviation distribution companies and designated for sale.
Per Taishan Airlines Distribution Company requirements, every 5 packs of other cigarettes had to be paired with 1 pack of Taishan cigarettes.
Retail shops accustomed to Taishan Airlines Distribution Company channels, though reluctant about bundled sales of Taishan cigarettes, raised no objections.
Leveraging the aviation distribution channels, Taishan Brand Cigarettes completed stocking in five cities.
After stocking these cigarettes, time was needed to verify if consumers would like them.
At this time, events in China and the world attracted Fang Wen’s attention.
Early October 1933.
In the Taishan Airlines Headquarters General Manager’s office, while handling various company matters, Fang Wen was also waiting for the intelligence package from Shanghai.
As a premium client of Shanghai intelligence dealers, Fang Wen received every half month a summary of intelligence from that period; this was also the information channel Fang Wen preferred, as intelligence was more timely than newspaper news, and some even included special analysis.
At 9 o’clock, a man got off the airport shuttle, carrying a bundle into Taishan Airlines Headquarters.
Chun Cao carried the bundle to knock outside the General Manager’s office.
“Mister, your things have arrived.”
“Come in.” Fang Wen paused work, stood to take the package, and used scissors to cut the wax seal.
He pulled out the first piece of intelligence.
【October 3, the National Government decided to issue 100 million tariff treasury coupons, backed by Republic of China year 23 tariffs for 100 million treasury coupons.】
Looking at this intelligence, Fang Wen frowned.
These years the National Government kept borrowing money, but the things they did were too outrageous.
This May, Song Ziwen went to the United States to negotiate the next cotton-wheat loan, borrowing 50 million US Dollars from the US “Reconstruction Finance Corporation”.
Such a huge loan, yet the agreement content raised suspicions of graft.
The loan contract stipulated using four-fifths of the loan amount to buy US cotton, and the remaining one-fifth for US wheat flour.
Borrowing money to buy US agricultural products made no sense; not a single airplane, ship, or cannon in return, yet saddled with huge debt, buying piles of Great Depression stockpiled cotton far more expensive than domestic—utterly useless.
Who knows how many kickbacks were generated here.
And this tariff treasury coupon to be implemented next year was definitely another great opportunity for National Government executives to make money.
He wanted to see what tricks these people would pull.
Fang Wen flipped past this intelligence and looked at the next.
