Beiyang Dream

Chapter 99 The "Wagner" of Southeast Asia and the Crushing of 1 Taels

April 23, Tianjin, Changfu Flower Hall.

On a sweltering day, a long table made of four large rosewood tables was set up in the flower hall, covered with a snow-white foreign tablecloth. On the tablecloth was a large porcelain bowl of mung bean soup, with some crushed ice floating in it; there were also two large plates of watermelon, all with the rind on, cut into slices.

Seven or eight old men sat around like this, each holding a large palm-leaf fan, waving it loudly.

Chang Desheng sat in the main seat, fanning himself while calculating in his mind: Everyone here is a god of wealth, and their combined net worth is far greater than the national treasury of the Qing Dynasty!

Luo Zhenxing, Chang Desheng's prospective father-in-law, was the richest man in Borneo, the governor of Pontianak, and owned silver, property, and two thousand guns. He was awarded the Orange-Nassau Medal.

Today, all the Chinese Kapitans in the Dutch East Indies take him as their role model!

Luo Xinglan, Chang Desheng's brother-in-law, is a fifth-rank candidate for prefect, an associate of the Nanyang Bank, and in charge of the Tianjin branch. If this matter is handled well, he will become the "central bank governor" of Beiyang!

Zhang Bishi, the richest man in Southeast Asia, had just received the highest rank in the imperial court and was the nominal general manager of the Nanyang Bank, the leader of the Southeast Asian financial magnates. He had also received the Order of Orange-Nassau and was appointed Kapitan of Penang by the British, making him a powerful figure whom both Britain and the Netherlands sought to win over.

Zhang Zhensheng had just returned from Germany, and Zhang Bishi planned to appoint him as the co-director of the Luanzhou Coal and Iron Corporation. He also intended to move Schneider Electric's mortar business to Luanzhou and gradually expand the arms business in the Beiyang and Nanyang regions.

After all, smuggling goods out of Germany is still too troublesome.

Huang Zhonghan, the Sugar King of Java, is in his thirties, with a round face, big eyes, and a friendly demeanor. He is a "second richest man" in Southeast Asia, a leader of the Hokkien gang, with a net worth of no less than 20 million, and also a candidate for the position of Daoist official in the Qing Dynasty.

Chen Xiulian, the "King of Tin" and "King of Rubber" in Malaysia, was a Teochew native and a second-generation rich kid. Along with Chen Jinzhong, the "King of Rice" in Siam, they were leaders of the Teochew clique in Southeast Asia. He held a lower official position, a fifth-rank candidate for prefect.

Chen Yinzhong, the younger brother of the King of Siam, was chubby and had a smile that resembled that of Maitreya Buddha. A guest of the King of Siam, his family controlled half of Siam's rice exports, and their net worth exceeded ten million taels of silver. He was also a candidate for the fifth rank.

The seven individuals represent the three major Chinese merchant groups and five wealthy families in Southeast Asia.

Chang Desheng picked up the chilled mung bean soup and took a sip.

"Gentlemen," he put down his bowl and said with a smile, "I invited you all here today for no other reason than that the Grand Secretary would like to borrow some money from you all for the Luanzhou Coal and Iron Joint Venture."

“Taking something isn’t called borrowing,” Zhang Bishi chuckled. “It’s called investing.”

"Yes, let's invest!" Chang Desheng slapped his thigh. "Third Uncle is right, let's invest! This is a government-supervised, merchant-run business, not a government-borrowed loan. Investing money makes you a shareholder, and you'll receive dividends at the end of the year according to your share."

He expected to be met with a chorus of agreement after he said that.

But the reaction in the flower hall was not quite what he had expected.

Chen Xiulian put down her fan, ignoring his words, and instead turned to look at Huang Zhonghan. Huang Zhonghan, holding his teacup, didn't look up. Chen Yinzhong, holding a piece of watermelon, didn't put it in his mouth either.

Chang Desheng thought to himself: Something's not right here!

Sure enough, Chen Xiulian cleared her throat and spoke: "Observer Chang, we heard about the Luanzhou factory incident on the way here. Logically speaking, we can't ignore Governor Luo's and Director Zhang's influence. However..."

He paused, his tone still polite, but his words were anything but: "Before we left Shanghai, a Mr. Gu from the Zhang Xiangshuai residence in Huguang sent a telegram to each of us."

Chang Desheng's heart sank. Mr. Gu? Gu Hongming? Zhang Zhidong's most capable assistant in the Westernization Movement? He seemed to come from the wealthy circles of Southeast Asia. "Mr. Gu said in the telegram," Chen Xiulian continued unhurriedly, "that the court has already set the tone, prioritizing the use of rails from the Hanyang Steel Plant. Luanzhou..." After all, it's not the court's favored son; it hasn't received official approval yet, has it? What if the court's policy changes in the future, and the rails from the Luanzhou plant can't be sold, and the invested money goes down the drain... We have to weigh this risk carefully."

He spoke politely, but his meaning was clear: Zhang Zhidong, through Gu Hongming, had given advance notice to the financial magnates of Southeast Asia.

The imperial court supports Hanyang, but Luanzhou Factory lacks the court's backing and is therefore unreliable!

Huang Zhonghan then put down his teacup and slowly added, "Observer Chang, it's not that we don't trust you. But a deal worth millions of taels can't be decided based solely on a few words of friendship. Don't you think so?"

Chang Desheng cursed inwardly: "That old bastard Zhang Zhidong, he's got a hand that's too far! The Luanzhou Factory project hasn't even been officially approved yet, and he's already using Gu Hongming to steal it!"

He remained outwardly calm, smiling as he picked up the mung bean soup and took a sip, his mind racing.

He glanced at Zhang Bishi. Zhang Bishi held his teacup, remaining silent and expressionless. Clearly, he already knew about this, but he had no intention of speaking up for Chang Desheng.

Luo Zhenxing wanted to speak, but a glance from Zhang Bishi made him swallow his words.

Chang Desheng put down his bowl and smiled. "Gentlemen, I heard what Mr. Gu said. He's right, the court does indeed favor Hanyang at present. However, you are all experts in business. What's the key to business? Cost. And the cost of a steel mill lies in its location." He sneered a few times. "The Hanyang Ironworks transports iron ore from Daye, a 300-mile waterway. Where does the coal come from? Zhang Xiangshuai tried Wang Sanshi, but the coal he dug up was flooded; he tried Ma'anshan, but the coal had too high a sulfur content to coke. They're still searching for coal everywhere, even coal from Kaiping has to be transported by sea, going around half of China... Gentlemen, do the math, just the transportation costs alone, how much more expensive is it per kilogram of steel compared to Luanzhou?"

He glanced at the crowd and said, "We're all businessmen here. Don't you all understand which factory in Hanyang and Luanzhou will make money and which will lose money?"

Chen Xiulian didn't reply, but her expression relaxed a little.

Chang Desheng pressed his advantage: "As for the imperial decree, the Grand Secretary has already given his approval. As soon as your plans are finalized, the Grand Secretary will immediately submit a memorial to the court requesting permission to proceed. I have also personally reported this to the Empress Dowager, and she said four words: 'Go ahead and do it.'"

He emphasized the words "go ahead and do it".

The flower hall was quiet for a few moments.

Chen Yinzhong put down the watermelon, wiped his hands, and said slowly, "Regarding the regulations, we can discuss them slowly. However... we do have a few things we'd like to talk to you about privately."

Let's talk privately?

Are they trying to force Sheng Xuanhuai?

He stood up with a smile: "Perfect timing, there's a small pavilion in the backyard, it's cool there, let's go sit down."

Chen Xiulian and Chen Yinzhong exchanged a glance and stood up together.

The three of them left the flower hall one after the other, walked through the corridor, and arrived at the small pavilion in the backyard.

Chen Xiulian cut to the chase: "Observer Chang, there were some things that were inconvenient to say in the flower hall earlier, in front of Lord Sheng. Now that it's just the three of us, I'll speak frankly..."

He paused for a moment, then continued, "To be honest, we don't really care whether the Luanzhou Ironworks can make money or not. We can afford to lose a few million taels of silver."

Chang Desheng was stunned. You don't care about making money? Then what do you care about?

Chen Xiulian looked at him and continued, "What we care about is Governor Luo's approach."

The "official Luo" he mentioned is Luo Zhenxing.

"Governor Luo has territory, an army, and political power in Pontianak. The Dutch don't dare touch him, and the British have to give him some face. As for us," he gave a bitter smile, "in the eyes of foreigners and natives, we're nothing more than goose that lays golden eggs. If they're in a good mood today, they'll feed you a handful of rice; if they're in a bad mood tomorrow, they'll slaughter you and eat your meat."

Chen Yinzhong nodded beside him and added, "I've observed this closely, and to be honest, the situation in Southeast Asia has been quite turbulent these past few years. The Dutch are intensifying their exploitation in Java, and the British are tightening restrictions on Chinese merchants in Malaya. We may seem to have large and prosperous businesses, but we don't sleep soundly at night... fearing that one morning we'll wake up to find our estates occupied, our mines robbed, and our entire families unable to even save their lives."

He took half a step forward and lowered his voice: "We also want to follow Governor Luo's path. But we don't have a helper like you." Chang Desheng understood.

They didn't come here to invest in the ironworks.

They came looking for "Wagner".

Seeing that he didn't speak, Chen Xiulian continued, "Governor Luo told us that in the battle of Pontianak, you fought against thousands of men with only a few hundred, and the tactics, equipment, and training methods you used were all German-style. We would like to ask... could you teach us those skills as well?" Chang Desheng took a deep breath, his mind racing.

Southeast Asian Chinese merchants wanted private armed forces. This matter was neither a major nor a minor one. On a small scale, it was about training henchmen for a few wealthy merchants; on a larger scale, it was about sowing the seeds for Chinese armed forces in the colonies.

He hesitated for a moment, about to say, "I need to ask His Excellency's opinion first," but then swallowed the words back.

wrong.

This matter cannot be discussed with Li Hongzhang.

Li Hongzhang was a court official, and the court would not allow wealthy Han Chinese merchants to possess private armies. If the matter reached Li Hongzhang, it would be ruined. Moreover, the reason the Southeast Asian financial magnates approached him instead of Li Hongzhang was precisely because he was "one of their own." If he lacked even this basic sense of responsibility and had to consult his superiors on everything, why would the Southeast Asian financial magnates trust him?

He raised his head, looked at Chen Xiulian and Chen Yinzhong, and said solemnly:

"Mr. Chen, Mr. Chen the Second, I understand why you've come. I won't hide it from you... I can make you a promise!" He paused, then continued, "Once I arrive in Korea and establish myself, I will set up a... 'Nanyang Escort Agency'! It will provide four services specifically for Chinese merchant groups in Southeast Asia."

"First, train the servants. Train them according to the German military manual, teaching them everything from drills, shooting, tactics to command."

"Second, defensive deployment. We will help you design the defensive fortifications for your manors and mines, including trenches, bunkers, and barbed wire. We will plan out the layout and defenses in detail."

"Third, equipment supply. Procure weapons from Germany and the Beiyang Army—rifles, pistols, gunpowder, bullets, even artillery—anything I can get my hands on, I'll get it for you."

"Fourth, export mercenaries. If you encounter a large-scale attack and your own manpower is insufficient, I can transfer trained soldiers from North Korea to the south to provide support."

Chen Xiulian and Chen Yinzhong exchanged a glance, their eyes shining.

Chen Xiulian cupped his hands in greeting: "Observer Chang, we are relieved to hear your words. We accept the shares in the Luanzhou factory."

Chang Desheng was secretly pleased, but he didn't show it on his face. He was about to say a few polite words.

Chen Yinzhong waved his hand and added with a smile, "Observer, you haven't finished speaking yet."

He took a step forward and lowered his voice: "We believe everything you just said. We also understand your current difficulties. You need to train troops, open mines, and deal with the Japanese in Korea, and you need money for everything. Can you tell us... how much do you need?" Chang Desheng thought to himself: This chubby brother of the Rice King looks like Maitreya Buddha, but he is actually more shrewd than anyone else.

He's asking: How much money do you want to be our "military contractor"?

Chen Xiulian, who was standing to the side, nodded and continued, "Observer Chang, Brother Yinzhong's meaning is also our meaning. We understand your difficulties. Name your price, and we will not haggle."

Chang Desheng's mind raced for a moment, then he held out a hand, fingers spread wide: "The first payment is 500,000 taels. It's not a loan, it's an investment... an investment in my 'Zhenzi Battalion.' Once I've established myself in Korea and the Nanyang Escort Agency is up and running, you'll all be shareholders."

Chen Yinzong didn't reply, but turned to look at Chen Xiulian.

Chen Xiulian pondered for a moment, then nodded: "Deal."

He stretched out his hand.

Chang Desheng shook hands with him.

When they returned to the main hall, Zhang Bishi glanced at them, his gaze sweeping over the three faces. Then, he picked up his teacup and said slowly, "Zhenbang, draft a proposal regarding the official-supervised, privately-run regulations for the Luanzhou Coal and Iron Joint Venture. We'll take a look at it first."

Chang Desheng knew in his heart that Zhang Bishi and the two Chens were in cahoots! He exchanged glances with the two Chens, knowing that he had satisfied them... ...But the silver from Southeast Asia was really tempting!

Thinking of this, Chang Desheng smiled and replied, "Don't worry, Third Uncle, the manuscript will be delivered to you within three days."

Zhang Bishi nodded, then looked at Sheng Xuanhuai: "Lord Sheng, regarding the Luanzhou factories and mines, what about the Grand Secretary's situation..."

"His Excellency has already given his approval," Sheng Xuanhuai said hastily. "As long as you all agree on the procedures, and His Excellency deems it feasible, he will immediately submit a memorial to the court and request permission to proceed. Moreover, you need not worry that the court will not approve; that is impossible."

Zhang Bishi grunted in response and said nothing more.

Chang Desheng picked up the mung bean soup, took a big gulp, and exclaimed, "It feels so good!"

Well, the big project worth hundreds of millions of taels of silver has been finalized.

He had the money to set up the ironworks, the bridge loan secured by the mining rights, and even the pay for the opening of his "Zhenzi Battalion"...

More importantly, the seeds of the Nanyang Escort Agency were sown.

At this very moment, outside the flower hall, under the eaves.

Luo Jingrou was pulling Qingzi along as they peeked inside.

"That's the Zhang family from Penang, Zhang Bishi, my third uncle. Next to him is my fifth uncle, who just returned from Germany."

"That's the Wong family of Java, Wong Chung-han, the Sugar King."

"That's the Chen family of Kuala Lumpur, Chen Xiulian, the tin mining tycoon."

"That's the Chen family of Siam, Chen Yinzhong, the younger brother of the Rice King."

Each time she pointed to one, Haruko nodded slightly. The girl in the kimono was wearing a light purple patterned kimono today, her hair was neatly combed, and she wore light makeup, looking gentle and lovely.

"Are they... all incredibly wealthy people with assets exceeding ten million taels of silver?" Haruko asked softly.

"That's right." Luo Jingrou laughed. "Compared to them, my father is considered poor."

Haruko glanced at the wealthy Southeast Asian merchants in the flower hall, who were fanning themselves, drinking mung bean soup, and chatting and laughing. She was utterly shocked! Any one of them had a net worth several times to ten times that of her adoptive father, Kihachiro Okura!

Moreover, she knew that these Southeast Asian Chinese tycoons had very low debt-to-equity ratios, unlike Japanese zaibatsu, which were centered around banks and used depositors' money for their own expansion. Therefore, the total assets of Japanese zaibatsu were actually inflated by banks.

Haruko took a deep breath: "They've all come to your wedding with Brother Zhenbang?"

"Not entirely," Luo Jingrou lowered her voice, "They're mainly here to discuss business with the Beiyang government—a huge deal worth ten million taels!" Qingzi's eyes widened slightly: "Ten million taels? What kind of deal is that?"

"It seems to be an ironworks that produces 50,000 tons of steel a year, and a coal mine that sells 500,000 tons of coal a year," Luo Jingrou said casually. "And there's also a well-capitalized bank."

Haruko's heart sank.

Did the Chinese tycoons in Southeast Asia follow the example of the Japanese zaibatsu and establish the Nanyang Bank, intending to use it to amplify their capital and invest in the industries of Beiyang?

And this 50,000 tons of steel...

"Steel isn't easy to forge," Haruko asked tentatively. "The Germans must have been involved too, right?"

"Of course!" Luo Jingrou smiled. "Krupp will provide the technology and key equipment."

Haruko fell silent.

Krupp. Not just a steel mill, but also Germany's largest arms manufacturer. If Krupp is involved, it won't just be a steel mill issue; later on, they'll definitely be manufacturing guns, cannons, and warships!

"The Qing Dynasty's strength is indeed the greatest in Asia," Haruko said softly. "Once they get serious..."

Before she could finish speaking, a servant from the Luo family rushed over, bowed, and said, "Miss, the carriage from the Okura Group's Tianjin branch has arrived. They say they're picking up Miss Qingzi." Luo Jingrou took out a bright red invitation from her sleeve and handed it to Qingzi: "My wedding is on the first day of the fifth lunar month. You must come."

Haruko accepted the invitation and bowed her head, saying, "Hello..."

She turned to leave, then paused, glancing out of the corner of her eye towards the flower hall. The people inside were chatting and laughing, the atmosphere relaxed and harmonious. She looked away, lowered her head, and boarded the carriage.

Japanese-style room at the Okura Group Tianjin branch, in the British Concession of Tianjin.

The paper door was half-open, and the scent of sandalwood wafted through the air. The second-in-command of the Okura Group, the managing director, the head of the Tianjin branch, and Haruko's uncle, who had just arrived from Japan, knelt on the tatami, holding the bright red invitation card in his hand, turning it over and over to examine it.

Opposite her, Haruko knelt with her head bowed, her hands neatly placed on her knees.

"Beiyang...Nanyang...ten million taels..." Okura repeated these words in a low voice.

Ryohei Uchida sat in the corner, adjusted his glasses, and remained silent.

Kijuro Okura gently placed the invitation on the low table and pushed it back in front of Haruko.

"Keep this invitation safe," he said gently. "Dress nicely for May 1st. It's the wedding I've been observing; we'll go together." Haruko bowed her head: "Yes, sir."