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Volume 2: Three Pillars Chapter 12: Good things come in pairs

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    "It's not that I don't agree with the loan, it's just that I think the amount is too large. This is not 400,000, 4 million, 40 million, or even 400 million, but 4 billion U.S. dollars. This is the annual fiscal revenue of our federal government.  If we use one billion as an investment in the stock market, the income will be far greater than it is now!"

    James Johnson is a shareholder of Star Flag Bank. Although he was dissatisfied with the bank's loans to China from the beginning, he was unwilling to interfere too much with the bank's normal business.  To his surprise, the amount of the loan increased, and he finally lost his composure and followed Kergen to China.  Although he has seen some positive aspects in China, he does not think this is a reason to continue to provide China with a loan of US$4 billion.  This rate of return is really too low. If you put your money in the stock market, you will definitely earn much more than you do now.

    "Mr. Johnson, you should understand that although we are Star Flag Bank, we also have businesses in other fields. Interest is only one aspect of loans to China. What is more important is the Chinese market, a market with hundreds of millions of people. Even if  If each of them contributes one dollar of profit to us, we can earn hundreds of millions of dollars. They are also rich in minerals. The tungsten, antimony, and tin produced in China are among the most important strategic materials. We don¡¯t need to worry at all.  The Chinese can't repay their loans. What's more, I originally hope that China can't repay their loans. Only in this way can we get more privileges in China, and more privileges mean higher profits." I have always had a close relationship with James Johnson.  Wallace, who was across the street, didn't wait for Kergan to speak.  He immediately retorted.

    ¡°I don¡¯t think China¡¯s current leaders will give us many privileges. Judging from the consistent words and deeds of their leader Zhang Anle, he is not the kind of person who can sell out national rights and interests casually.¡± James Johnson said not to be outdone.

    "This is not about whether he is willing to sell the country's rights and interests. If he wants to lend money, he must pay something. You are right, this is not 400,000, 4 million, or 40 million. If he wants to lend billions from us, he must give us something first.  Sweetness. China is so big, and if they give us some mineral mining rights, we can get rich harvests. If they can give us more preferential treatment in building factories and trade, we will get more." Wallace.  I am very dissatisfied with James' statement.

    "No need to argue, I decided to pass the loan plan to China. Although China is poor now, it has great potential for future development. If we help China now, it will be of great benefit to our future business development in China. We  When doing business, you cannot just focus on immediate profits. Our bank is not just a bank for three to five years. In the long run, maintaining a good relationship with a big country like China will play an immeasurable role in the development of our banking business."

    "It is said that the stubborn British Parliament has passed a loan bill amounting to 100 million pounds, and the target of the loan is China. This shows that the UK is also quite optimistic about China's future, and we cannot lose this good opportunity. Otherwise, wait  We can only regret it." Kergen looked around everyone and continued.

    "What's more, during this month's inspection, you can also find that China is developing very fast. The industrial parks in Xi'an and Mongolia left a deep impression on me. The Chinese government has done its best to develop the national economy. This  According to the ancient Chinese saying, lending to China is a timely help. I believe this is the right decision." Kergen said, stood up and turned to leave.

    When everyone here saw this situation, they all knew that this was the only way to handle the matter.  Even though the head of the consortium is a woman and a young woman, the things she decided have never changed.

    "You all know that the things decided by the president will not change. Okay, let's all leave." Wallace looked at the people who were still discussing, waved his hand and said.

    The executive government

    "They asked us to use customs taxes as a guarantee, and the repayment method can also be replaced by minerals and agricultural and sideline products. If there is really no money by then, the mineral mining rights can also be used to repay the debt. In addition, they want  Privileges for trading and setting up factories." Gu Weijun looked at Zhang Anle's expressionless face and told him the conditions proposed by the other party in the past two days of negotiations with Star Flag Bank.

    "Then do you think these conditions are acceptable?" Zhang Anle couldn't tell Gu Weijun's true thoughts from his words, so he asked directly.

    "In fact, some of the conditions proposed by the other party are quite reasonable, such as customs tax as a guarantee, and the use of minerals and farmers' products to repay the debt. But some conditions are not so reasonable. They want mineral exploration and mining rights, rights in some cities  Trade and factory privileges." Seeing that Zhang Anle did not express his position, Gu Weijun expressed his thoughts.

    ¡°Some things can be discussed as long as they are not excessive, such as mineral exploration and mining rights.I think we can talk about it.  Of course, the premise must be that when the conditions of both parties are similar, they have priority.  For another example, taxes can be appropriately reduced in terms of trade and factory establishment.  Naturally, they are willing to give us such a large loan because they want to make a lot of money.  If you just want to earn that little interest, it's a bit uneconomical, so I've already expected them to have other requirements.  "Zhang Anle did not comment on Gu Weijun's statement. Instead, he directly expressed his thoughts.

    "Don't put any psychological burden on you. After this matter is settled, we can convene a standing committee of the National Conference of Representatives from all walks of life to discuss it. For the rapid development of the country, I think it is okay to sacrifice the interests of the country appropriately.  After all, we are here to obtain greater benefits." Zhang Anle knew that Gu Weijun might have a psychological burden. After all, the country has signed too many unequal treaties with foreign countries in recent years.  Gu Weijun didn't know how the public would react to this loan. He was afraid of being called a traitor.

    "It is indeed a good way to discuss it in the Standing Committee. It is a thoughtful approach to governing. In this case, I will continue to negotiate with the United States. When the two sides are almost done talking, we will hand it over to the Standing Committee for discussion." Gu Weijun heard Zhang  If you are happy, you will be relieved.  Hearing him talk about the Standing Committee, he suddenly felt that it might become a tool to restrict Zhang Anle.

    After Zhang Anle¡¯s promise, the negotiations between the two parties progressed rapidly.  Gu Weijun showed Zhang Anle a sample of the loan agreement, and Zhang Anle nodded in agreement.

    Gu Weijun¡¯s impassioned speech at the Standing Committee meeting that was held shortly left several members of the opposing committee speechless. The Standing Committee approved the loan agreement with a unanimous vote.

    On January 19, 1927, Gu Weijun and Kergen signed a loan agreement in the auditorium of the State Council.

    The main contents of the agreement are:

    Star Flag Bank of the United States will provide China with loans of US$800 million per year for five years, with a total loan amount of US$4 billion.

    The loan was repaid in 10 years starting in 1932, totaling US$5.2 billion including principal and interest. China has the right to repay in advance.

    All legal businesses of Star Flag Bank in China are recognized by the Chinese government and guarantee the safety of Star Flag Bank¡¯s property in China.

    Under the same conditions, Star Flag Bank has priority in bidding for projects, equipment, products and services.

    See the appendix for details of other rights and obligations of both parties.

    Of course, a lot of the content here is very detailed, and this is also a non-public version. There are only the first two items in the official public version.

    After the loan agreement was signed, Gu Weijun took over the first-year loan check from Kergen - US$800 million.

    "People's Daily" headlines commented on this loan and believed that this loan from Star Flag Bank has made a huge contribution to China's economic development.  The Chinese government welcomes all companies or individuals willing to come to China to conduct legitimate business and guarantees the safety of their property.

    The "New York Times" in the United States reported this incident under the title of Kergan's huge gamble. They believed that Kergan was gambling. Of course, if he won, he would make a lot of money. If he lost, it would be enough for these people to drink.  Of the pot.

    Teahouses in the streets and alleys across the country are also discussing how much 4 billion US dollars is, and the whole country is excited by this 4 billion US dollars.

    It was in this environment that the British delegation came to China.

    After hearing the news, Zhang Anle smiled and said to Lin Changmin: "The money sender is here again."

    The British were obviously much faster than the Americans. A few days later, a low-interest loan agreement of 100 million pounds was signed.

    During the Chinese New Year, Zhang Anle happily wrote: Good things come in pairs.  (To be continued)

    s

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