Chapter 120: Taking Office
The next day, Gu Yansheng was busy handling Judicial Department matters.
Ling Xianwen came to visit.
“Busy?”
“Busy, extremely busy. The chaos in SH urban area has peaked and calmed down a bit, but overall, it’s only slightly better than the peak. There are still many disputes.
Small cases don’t reach me, but big cases involving foreign merchants or requiring the government to pay money—people below simply don’t dare to decide and can’t decide. In the end, well.”
Gu Yansheng slapped the files and walked out: “They all end up in my hands, piled up like a mountain.”
“No rice in hand, even chickens won’t come.” Ling Xianwen smiled helplessly. “Mine’s about the same. Every day a bunch of foreign merchants block the door. No money stumps even a hero.”
“Sit. What would you like to drink?”
“No drink. You stop too. The new commander’s special plane arrives at noon. Mr. Hase means the city government should send someone to welcome him. There might be some arrangements.”
“He’s coming?”
He sure knows how to pick the time. Gu Yansheng pondered the impact of this on Military Statistics Bureau’s next actions.
Good news is a bunch of Japanese should be drawn to this, paying less attention to other things. For example, definitely a bunch of gendarmes will be transferred for airport reception and guard duty. There might even be a banquet in the evening. Stronger security at the banquet means looser elsewhere, convenient for Military Statistics Bureau actions.
Bad news too. New boss arrives, others will work more diligently no matter what. Japanese Army units’ checks today will definitely be stricter.
“Leaving now?”
“Leaving now.”
“Alright.” Gu Yansheng took his coat from the rack. The two went out. As he walked, he asked: “Coming at this time, does it mean negotiations there are about done? He must have brought the latest instructions from Japanese high-level.”
Ling Xianwen nodded: “Actually, the negotiation has been going on for more than a day or two. It’s just hammering out specific details. If Vice Chairman Wang didn’t get any conditions, he wouldn’t publicly declare support for the Japanese. It’s been several rounds. The Japanese side should show their attitude by now.”
Gu Yansheng leaned closer and asked: “So, Secretary-General, you think if these people come, is it good or bad for us?”
Ling Xianwen paused and said: “I feel it’s slightly good.
The Japanese seeking him is just hoping to prop up a new government to confront the Chongqing Government.
Japanese hitting China is called invasion, called colonization. New government hitting old government is called what? Revolution, internal strife.
Since Wang agrees to do this, he definitely got conditions. The Japanese must cede power.
Wang himself has a group of die-hard loyalists. If a big new government is really established, key positions will definitely be his people. Shanghai will be under the new government, he definitely wants positions here too, but he can’t take our positions.
Like Fu Xiao’an, Nanjing Command Headquarters people. Can he move him? Impossible.
But if you say financial power, I estimate he can definitely get a portion.
Look at us now with no money, having to ask Gendarmerie Headquarters for it. If he comes, when we have no money, we ask him.
Communicating with Japanese, changed to communicating with him, definitely more convenient with higher-ups. At least something like last meeting where someone was held at gunpoint to give ideas definitely won’t happen. If it happens, it’ll be his people the Japanese point guns at. That’s the reason, right?
For us, it’s more convenient.”
Gu Yansheng chuckled. “That’s the reason. If so, I’m looking forward to him coming. Hurry and finish the talks. We’re all poor to death.”
A convoy headed to the airport. They met up at the airport and saw the ailing Fu Xiao’an. Gendarmerie Headquarters and consulate people arrived one after another. City government other officials were also there.
“Mayor Fu, you’re here too. Feeling better?” Gu Yansheng greeted with a smile.
“Thanks to Director Gu’s concern, much better.” Fu Xiao’an coughed twice. Clearly, he was badly upset by Mr. Sassoon’s scheme last time, so his health hadn’t fully recovered.
After a few casual words, Gu Yansheng and Ling Xianwen spoke quietly with Mr. Hase, mainly discussing recent Shanghai matters.
An hour later, the airplane arrived.
So-called welcome is just being green leaves, clapping onlookers. Don’t expect to say a few words. Everyone meets face-to-face, then the group gets back in cars to Gendarmerie Headquarters.
The new Gendarmerie Commander is called Miura Jiro, rank Major General.
“Shanghai’s economic development has really disappointed General Headquarters. Shanghai as one of Far East’s most important ports should provide military expenses for the Empire, but now, unbelievably, the Military Department has to subsidize Shanghai’s construction.
I know this isn’t necessarily the fault of everyone present. The Military Department has also punished Iwasa Taro’s stupidity to a certain extent. But you as persons in charge of Shanghai’s important departments, no problem? Equally hard to escape blame.
Gentlemen needn’t worry. I’m not here to assign blame, because blame itself is meaningless for Shanghai’s situation.
The Military Department’s demand for me is to stabilize Shanghai’s economy and develop the economy. So I inform you here: the Military Department’s demands are my demands. Whoever can do it is a meritorious official.
I particularly like a Chinese ancient saying: great rewards under must have brave men.
Whoever can boost Shanghai’s economy can have supreme power in Shanghai, even all of China!
Want money, give money. Want women, give women. Whatever I can do, I can give you whatever you want—even His Majesty the Emperor’s medal, I can help you get!
You should know we’ve contacted Vice Chairman Wang of Chongqing. He’s about to form a new government. Then China’s vast lands will be under this brand-new government’s rule. Power is men’s romance, also men’s highest supreme pursuit!
Boost Shanghai’s economy, I can give you whatever you want.”
These words were mainly for city government officials. Some were moved.
Though not knowing this Miura Jiro person, from his style, at least completely different character from Iwasa.
Miura Jiro continued: “The Military Department has also summarized Shanghai’s problems this time and knows many of you aren’t professional economic talents, so specially sent Lieutenant Colonel Kobayashi Nobuo from the economic guidance section to handle Shanghai economic recovery.”
Kobayashi Nobuo stood and bowed slightly to everyone.
Twenty-seven or twenty-eight, very young, wearing glasses, refined and gentle.
Miura Jiro continued introducing: “Mr. Kobayashi is an economics doctorate from Tokyo Imperial University and studied in Germany. An invaluable talent in economics. But on Shanghai, he definitely isn’t as familiar as you Chinese.
So if you have suggestions, bring them up. As long as good ideas Mr. Kobayashi deems feasible, even if you don’t participate, the merit after implementation counts as yours. Suggestions are fine, contact him anytime.
Next, Mr. Kobayashi, please share your views on Shanghai’s current economy.”
Kobayashi Nobuo bowed slightly: “I’ve preliminarily reviewed Shanghai’s economic development these days. Lieutenant General Iwasa’s strategy I think has no problem, just the implementation was indeed unprofessional.
Like the drug plan and Military Note Plan, the two plans actually shouldn’t be pushed together. Simply pushing the Military Note Plan first, things wouldn’t be this bad.
The Military Note Plan’s implementation problem was rushing too much. Japanese Yen as a long-lasting currency, I believe not just Chongqing, countries worldwide have research on making counterfeit currency. Basing military scrip on Japanese Yen—that was the biggest problem this time.
So next, Shanghai’s military scrip must continue to be pushed, but the military scrip design must change. These days I’ve contacted relevant agencies to produce a new version of military scrip, urgently rushed, first batch should arrive at port within 5 days. Then need everyone to help promote it.”
“What about the previous military scrip?” Ling Xianwen asked.
Kobayashi Nobuo looked over and smiled: “All exchanged within the deadline, then all invalidated.”
“Isn’t that the same as before?” Ling Xianwen didn’t get it.
Other directors also felt they didn’t understand.
Kobayashi Nobuo smiled faintly: “I know this method was exploited by Chongqing elements before, but no matter. This exchange, do it slowly. We only accept real military scrip. As long as real military scrip, one-to-one exchange. Foreign enterprises want to exchange to foreign currency? Fine, at the original fixed ratio. Within seven days, unlimited exchange. Want to exchange, exchange anytime.
After seven days, rest assured, still exchange. Just that I’ll establish a dedicated exchange rate exchange. That is, Shanghai military scrip exchange rate will be floating henceforth.
This should be easy to understand. Originally our exchange ratio is fixed, but legal tender isn’t issued by us, legal tender itself has no value. So to counter legal tender’s impact, that’s why floating exchange rate.
Deeper, international situation always changes, countries’ ratios change too. So change fixed to floating, that’s all.
But one point to state upfront: the money I brought back from headquarters this time is absolutely enough for everyone to weather this exchange crisis. After military scrip credit is established, I’ll take this money back. Equivalent to me lending to the city government.”
Since the Japanese are willing to pay, everyone had no problem.
As for lending or not, they didn’t care.
“Then I’ll continue.”
Kobayashi Nobuo bowed and smiled: “The military scrip problem was not being resolute enough. Even with counterfeit currency, as long as slowly exchange, honor promises, bear the exchange funds, it still wouldn’t be a problem.
Actually that day, if gritted teeth, loan money from Japanese banks, exchange all counterfeit currency, then withdraw this version of military scrip—wouldn’t the credit still stand?
We want to develop Shanghai’s economy. Destroying credit is a very stupid act, killing the chicken for eggs. So in future everyone can rest assured: military scrip exchange to any currency can definitely be done anytime.
Done with military scrip, now drugs.
Drugs as a hugely profitable business, Lieutenant General Iwasa hard-turned into small business. That I didn’t expect.
Of course, maybe not Lieutenant General Iwasa’s problem. Sheng Wenyi, is that the name?
Too stupid.
Next, drug business still follow the agreement drafted by Director Gu and major businessmen, but Director Gu, you need to communicate with major businessmen. All businessmen, hand over a bit more profit. And this portion isn’t forced requisition.
It’s that we’ll help them develop national market. As long as they’re willing to expand out, Shanghai’s drugs can sell to all China, even the world. And Shanghai becomes Far East’s biggest drug distribution center.
This is win-win. Director Gu, please.”
Gu Yansheng nodded: “Sounds like they make money too. I’ll do my best.”
“Good. Next, your city government’s current problems. Let me see if I can help with ideas.”
Ling Xianwen said: “Mayor Fu has been recuperating these days. Let me speak. City government’s biggest problem now is no money.
Military scrip issue mostly solved by Lieutenant Colonel Kobayashi, but still some enterprises hold counterfeit military scrip, possibly not small amount. It was exchanged out by Economic Department back then. How to solve this portion?
Also due to Shanghai unrest, many smashings occurred. Many enterprises demand city government resolve their losses, many foreign enterprises. How to solve this portion?
Finally, foreign enterprises leaving. Due to recent conflict between Gendarmerie Headquarters and concession, led to death of Sassoon Firm Chairman Mr. Sassoon’s second son falling from building.
Sassoon has huge influence in Shanghai. His own departure took away many industries in SH urban area. His influence also made many foreign enterprises leave. To develop economy, we must bring foreign enterprises back. How to solve this problem?”
Kobayashi Nobuo nodded: “Three problems, I give solutions. First, future customs taxation goes to city government as operational funds. Compensation or counterfeit military scrip, solve these yourselves. Persuade or fund solution.
Gendarmerie Headquarters gives you decision-making power, but likewise, except customs taxation, Gendarmerie Headquarters no longer provides funds to you. Hope you achieve self-sufficiency.
Second, drug profit cash flow deposited in bank, as loan reconstruction funds. Loan to major enterprises. Their building losses, city government bears, but compensation not now. Not not repaying, just temporarily no ability. Repay after economy improves.
They have production demand, so drug profit funds are their startup loan funds.
If early funds insufficient, I can have Japanese banks loan to city government to tide you over.
This way, both ensures they continue business operations, and since loans, they won’t close again. Loan qualification review strict, use shops as mortgage.
And this bank will also be under city government’s name. Can clearly tell everyone: we’re negotiating with Chongqing’s Vice Chairman Wang, and negotiations mostly done.
If no accident, new great unified government will be established. This bank first trial-operated by us, later become new government’s Central Bank. So credit very important.
Third, foreign enterprises leaving more because Shanghai economic environment changes gave them uncertainty. As long as Shanghai’s economy stabilizes, I believe they’ll definitely return.
As for your mentioned Sassoon, killing his son is indeed serious. Can talk to him first, but we won’t admit, won’t concede.
Others return, if he unwilling, then no need for him. Use reasonable means to cripple all his enterprises, his market share naturally someone will take.
Shanghai isn’t non-negotiable without him.”
Kobayashi Nobuo adjusted his glasses and smiled: “Do you think what I said is right?”
