Beiyang Dream

Chapter 45: Warlords Set a Trap, Capital Manipulates a Scheme

Berlin, Tiergarten district, 18 Bendlerstrasse, Zhang Mansion, small living room.

The room was warm and cozy, filled with the aroma of tea and fried snacks, much like the smell of fried dough sticks during the Spring Festival in Tianjin.

Chang Desheng and Guo Shigui sat on a soft sofa, opposite Zhang Zhensheng, also known as Zhang Wuye. Luo Jingrou didn't sit down, but stood by the mahogany coffee table pouring tea for everyone, looking just like a diligent housewife.

On the coffee table were five or six plates: white rice cakes, golden fried dumplings, round fried glutinous rice balls, square sweet rice cakes, and wide-mouthed smiling rice cakes—all Hakka tea snacks.

"Mr. Chang, Counselor Guo, please have a taste." Zhang Zhensheng pointed to the coffee table and said with a smile, "These were all made by Arou this morning. Her mother, who is also my older sister, taught her this skill. It's not easy to get these ingredients in Berlin. The rice was brought from Southeast Asia, the sugar is from Cuba, and the oil is local rapeseed oil. It'll do for now."

Luo Jingrou placed the teacup in front of Chang Desheng, smiled, and said softly, "Brother Zhenbang, please don't mind, it's not very good."

Chang Desheng picked up a fried glutinous rice ball (a type of sesame ball) and took a bite. The outer skin was crispy, and the inside was filled with glutinous rice and red bean paste, which was sweet, sticky, and hot to the touch.

He thought to himself: A rich young woman who studied in Britain and Germany and can "throw" people with a Patek Philippe can actually make sesame balls... her skills are not bad.

Marrying her is definitely worth it!

Alright, let's talk about big business first. Once the Nanyang and Beiyang are firmly bound together, a marriage alliance will be a natural progression.

He swallowed the sesame ball and glanced at Guo Shigui.

Guo Shigui understood and cleared his throat: "Fifth Master Zhang, Miss Luo, we've come today to report some incredibly joyous news... Guess what it is?"

Zhang Zhensheng picked up his teacup and blew on the floating tea leaves: "Oh? Counselor Guo, please go on."

"Your Majesty," Guo Shigui leaned forward, speaking in Tianjin dialect, "you've approved the purchase of that new 8,200-ton ironclad warship from Germany for our Beiyang Fleet. The name has been bestowed upon it: 'Changyuan.' Auspicious meaning, signifying enduring stability and a long and prosperous nation!"

Zhang Zhensheng nodded: "This is great news. With this powerful weapon added to the Beiyang Fleet, the coastal areas can be secured and peaceful. Congratulations, congratulations."

Luo Jingrou sat down next to Zhang Zhensheng. She picked up her teacup and asked casually, "Lord Guo, is this 'Changyuan' warship... impressive? How does it compare to the Dutch ironclads in the East Indies?"

Chang Desheng thought to himself: "Comparing them to the Dutch East Indies Fleet, are they trying to intimidate the Dutch by waving the banner of the Beiyang Fleet? If they have this kind of idea, things will be much easier to handle."

He laughed and took over the conversation.

"Jingrou," he put down his teacup, speaking in a storyteller's tone, "this 'Changyuan' warship is far superior to those old, worn-out Dutch ships."

"Let me put it this way. The best ironclads the Dutch had in the East India Company had 210mm main guns, old-fashioned recoilless guns, which couldn't fire a single shot per minute. Our 'Changyuan' ship has 240mm semi-rapid-fire guns, with a rate of fire three times that of the former. Its armor is twice as thick, and its speed is five knots faster."

He paused, looked at Luo Jingrou, and grinned:

"This isn't war, it's adults beating children. We could wipe out the entire Dutch East Indies fleet with this ship, it would be a piece of cake. Even if the entire Dutch mainland fleet came together, they wouldn't be a match for the 'Changyuan' alone."

He added in his mind: "That's the step-ship I negotiated with the Germans for a month, forcing them to build it to the 'pre-dreadnought' standard. It's a bit smaller in tonnage and has smaller main guns, but against those old Dutch ships... it'll wipe them out in one go!"

Guo Shigui then picked up the conversation, sighed, and his smile faded, replaced by a worried expression.

"This ship is great, except... it's damn expensive."

Zhang Zhensheng: "Oh? How much?"

"Two million three hundred thousand taels." Guo Shigui held up two fingers, then three more, "Kuping silver."

Zhang Zhensheng frowned. He put down his teacup and looked at Guo Shigui.

"Two million three hundred thousand taels... Is the Beiyang government a little short of funds?"

He paused, as if weighing his options, and then said:

"How about this? This is the Empress Dowager's birthday celebration ship, a joyous occasion. My Zhang family will offer ten thousand taels of silver as a small token of our respect, what do you say?"

Luo Jingrou softly replied, "I can also send some money to my father. Five thousand taels is no problem."

Chang Desheng waved his hand.

"No need, no need."

Zhang Zhensheng and Luo Jingrou were both taken aback.

Zhang Zhensheng thought to himself: Something's not right. Sai Jinhua's note said that the Empress Dowager Cixi was only willing to take 500,000 taels from the coastal defense donation, while the Beiyang government would have to raise 1.08 million taels, leaving a shortfall of at least 720,000 taels. This doesn't even include exchange rate losses. Half of that 720,000 taels would have to be "begged" from Southeast Asia by Li Hongzhang. My family and the Luo family were both targets for Li's begging. We asked for 15,000 taels, waiting for them to haggle; 100,000 or 200,000 taels was still negotiable, as long as they could get us a 100,000 mark arms contract... Why isn't he playing by the rules?

"Zhenbang," Zhang Zhensheng asked tentatively, "Are you... being too polite?"

"It's not just politeness." Chang Desheng smiled, leaned back, and adopted the air of a big client. "I just feel that 15,000 taels is too small a price."

He looked at Guo Shigui.

Guo Shigui understood, and his speech quickened, as if he were discussing business in a teahouse:

"Master Zhang, Miss Luo, we in Beiyang don't lack the 15,000 taels of tribute. What we lack are long-term friends, friends who can do big business together."

Zhang Zhensheng narrowed his eyes, tapping his fingers lightly on his knees as if he were using an abacus.

He thought to himself: It's not that simple after all!

"What I mean is," Guo Shigui continued, spitting as he spoke, "that your Zhang and Luo families should lead the way, bringing together a group of wealthy Southeast Asian businessmen willing to align themselves with the Beiyang government. We won't do 'donations,' we'll do 'investments.' This will be a three-step process, each step interconnected, like a construction project, where not a single step can go wrong."

"The first step is for Nanyang to invest in Beiyang." Guo Shigui counted on his fingers, "Nanyang will provide the funds to buy a portion of the government shares in Kaiping Coal Mine. The shares of Kaiping Coal Mine were already traded in Shanghai, so this deal was just a matter of the Grand Secretary's approval. At the same time, Nanyang will also contribute funds to participate in the increase of shares and expansion of Kaiping Coal Mine, so that Nanyang and Beiyang can jointly mine coal in Kaiping, thus binding the interests of both sides together."

Zhang Zhensheng thought to himself: This Kaiping coal mine is one of the lifelines of the Beiyang government. Are they trying to turn us into "their own people" by asking us to invest? Or are they setting a trap to lure these wealthy Southeast Asians in?

"The second step is a bridge loan," Guo Shigui continued, getting more and more excited. "The Nanyang side will establish a 'Nanyang Bank' in the Shanghai concessions. This bank will provide a low-interest loan to the China Merchants Steam Navigation Company. Then, the Zhili Governor-General's Office will 'borrow' from the China Merchants Steam Navigation Company, transferring this money to the Beiyang government's account. The procedure is compliant, and it looks respectable—isn't this just the same principle as how we shuffle silver around in Tianjin!"

Luo Jingrou looked at Zhang Zhensheng.

Zhang Zhensheng remained silent, but raised an eyebrow slightly, clearly indicating that he was tempted.

Opening a bank in the Shanghai International Settlement and lending money to the China Merchants Steam Navigation Company... this bait is much more attractive than investing in the Kaiping Coal Mine. It's like having the Beiyang government's official power endorse the Nanyang bank!

"The third step is to pay off the loan by mining coal." Guo Shigui spoke with increasing enthusiasm, his voice brimming with excitement, as if he had struck gold. "The Southeast Asian side will establish a coal sales company in Singapore. This company will sign long-term agreements with the Kaiping Coal Mine and the China Merchants Steam Navigation Company—the China Merchants Steam Navigation Company's ships will transport Kaiping coal to your sales company in Southeast Asia for sale. With a market for the increased coal production in Kaiping, you can also earn a profit from the price difference in Southeast Asia. The principal and interest on the loan will be gradually repaid from the profits of selling coal!"

After he finished speaking, he looked at Zhang Zhensheng, and the smile on his face returned.

"Master Zhang, look at this. In this way, money from Southeast Asia goes into shares in Beiyang, and coal from Beiyang goes into the Southeast Asian market. This 720,000 tael hole is filled, and there will be a steady stream of business in the future. Southeast Asia and Beiyang, aren't they now a family bound together? This business is worthwhile, isn't it?"

The small living room fell silent.

Zhang Zhensheng and Luo Jingrou both fell into thought.

After a while, Luo Jingrou leaned close to Zhang Zhensheng's ear and spoke in Hakka, her voice extremely low and her pace very fast:

"Fifth Uncle, don't listen to his empty promises! The most important thing right now is the 100,000 mark arms deal! Without guns and cannons, our empire in Southeast Asia will be nothing more than meat on the Dutch chopping block!"

(Fifth Uncle, don't listen to his empty promises! The most important thing right now is the 100,000 Mark arms deal! Without guns and cannons, our business in Southeast Asia will be nothing more than meat on the Dutch chopping block!)

Zhang Zhensheng did not turn around.

He squinted and thought for a good half minute.

Then, in Hakka, his voice barely audible, he replied to Luo Jingrou:

"Cast a long line to catch a big carp. Set the trap first. When the Beiyang Army is desperately waiting for my money to settle accounts with the Germans, how many arms deals will be left unsigned?"

(Play the long game. Set the trap first. When the Beiyang Army is eager for our money to settle accounts with the Germans, how many arms orders will they be unable to secure?)

When he looked up, a hearty smile was on his face, showing no trace of a cunning businessman.

"Excellent! Excellent! You two aren't here to beg for alms, you're here to bring wealth and prosperity to us overseas Chinese merchants in Southeast Asia!"

He stood up, walked to the window, then quickly walked back, rubbing his hands together as if he had gotten a great deal.

"Leave this to me! I'll send a telegram to Southeast Asia right away and discuss it thoroughly with my third brother and my brother-in-law—Arou's father! As long as it's a profitable business, let alone 720,000 taels, there are plenty of people in Southeast Asia willing to pay 7.2 million taels!"

Chang Desheng and Guo Shigui exchanged a glance.

Guo Shigui laughed, his eyes narrowing into slits. He could almost see himself gaining favor with Li Zhongtang because of this "great fundraising achievement," securing the case, getting promoted, making a fortune... a bright future ahead.

Chang Desheng breathed a sigh of relief.

He thought to himself: "I'm hooked. This financial backer in Southeast Asia has now been initially tied to the Beiyang war machine. From now on, training troops, buying guns, rebelling... we'll have a 'financial backer,' no, a 'financial backer's father-in-law."

"Then thank you very much, Master Zhang." Chang Desheng smiled and cupped his hands in thanks.

Zhang Zhensheng laughed heartily: "Why call me Fifth Uncle Zhang? Call me Fifth Uncle!" As he spoke, he glanced at his niece.

Chang Desheng smiled, took out the exquisite sandalwood box from his side, and handed it to Luo Jingrou.

"Jingrou, this is a small token of my appreciation."

Luo Jingrou blushed slightly as she took the wooden box. The box was heavy.

She opened the box.

It was lined with dark blue velvet. On the velvet lay a small revolver. It had an ivory handle, and the gun barrel gleamed like a mirror. Six bright yellow bullets were neatly stacked beside it.

On the ivory gun handle are engraved two exquisite cursive letters: C&J—the Wade-Giles spelling, symbolizing the "Zhen" in "Zhenbang" and the "Rou" in "Jingrou".

Luo Jingrou picked up the pistol. Her fingers gripped the handle, her thumb gently tracing the two letters. Then, with a flick of her wrist, she smoothly opened the cylinder, checked the magazine, closed it again, and placed her index finger on the trigger guard. With a soft "click," the bolt returned to its original position.

The movements were skillful, clean, and efficient.

It's obvious this isn't the first time he's handled a gun.

Chang Desheng looked at her.

Luo Jingrou raised her eyes, met his gaze, and smiled slightly.

"Brother Zhenbang," she said softly, "Nanyang...is not peaceful. With your gun, I feel at ease."

Chang Desheng nodded.

"Just be down-to-earth."

He paused, looking at her: "Jingrou, what do you think of that 'three-step' plan?"

Luo Jingrou put down her gun, raised her eyes, and looked at Chang Desheng.

"This pancake," she said softly, "is very big and very round."

She paused, then said:

"But whether it can be cooked through depends on the heat, the firewood, and the person in charge of the pan."

Chang Desheng smiled.

"We'll control the heat together. As for the firewood, we'll each contribute a portion from the North and South."

"Let's cook together..."

Luo Jingrou's cheeks flushed slightly, and she nodded gently: "Mm."