Chapter 47

Li Xu's intention was very clear: whether it was joint development with the other side or setting up a research and development center there, it all boiled down to making them pay for Northrop.

This was not without precedent. As previously mentioned, the Pahlavi dynasty not only spent $1 billion to purchase 80 F-14s but also provided Grumman with a $75 million loan for working capital. This was an excellent example.

Unfortunately, the Pahlavi dynasty was overthrown last year, and the 79 F-14s already delivered by Grumman ended up benefiting the current Iranian government.

Even if it were joint development, the other side would not obtain core technology. In terms of taking money and betraying allies, American arms dealers were quite adept. As for the protests from the mainland to the north, that was no big deal. Even if the 8.17 Communique appeared on schedule, there would still be loopholes to exploit.

After all, the other side would also develop a second-generation half aircraft, the X-country model, in a few years. General, Grumman, and Northrop had all provided technical support. It would be better to take the initiative and secure this order.

First, it could help Northrop, as Grandpa still held a board position there, although it wouldn't help the F-20 much. Second, through Northrop, they could make the other side more compliant. One Intel production line wasn't enough; arms deals in this era were of utmost importance. Third, if they went to the mainland in the future, this intelligence could be sold for a good price.

"I admit, your lobbying is very persuasive, little Edward, but doing it this way... it's too much trouble," Mars said at this point.

"The board prefers to send a vice president to talk to them first, listen to their demands, and it's not suitable to let them participate in the development of the new aircraft," Johnson added.

"Oh?" Li Xu raised an eyebrow. These words were full of meaning. If it was so clear that they wouldn't give the core technology, why the preference? Could it be...

He looked at Grandpa, who sipped his tea calmly without saying a word.

Alright, he got it.

"Is Northrop planning to compete with General and Grumman for the Air Force contract?" Li Xu suddenly asked.

"Yes," Mars nodded.

"Then how much kickback will you give the Air Force?" Li Xu asked straightforwardly.

"950,000 dollars," Johnson replied without any awkwardness, and Mars was the same. This was already a surface-level unwritten rule.

"Just 200,000 more than the F-16." Li Xu smacked his lips and shook his head, seemingly finding it insufficient.

"This price is appropriate. Any more would affect our profit," Mars said.

"But isn't Northrop a Navy company?" Li Xu immediately countered.

Both men were taken aback, then Johnson shook his head: "You can't calculate it that way..."

"The F-18 has always been in the Navy and is the main fighter." Li Xu interrupted, "Gentlemen, we know what you want to say, but whether Northrop is a Navy company or not is not important. What matters is whether the Air Force thinks so, or rather... whether someone has made the Air Force think so."

He paused, leaned back in his chair: "General Curtis LeMay said it himself, the Soviet Union is the opponent, but the Navy... is the enemy."

Mars and Johnson's faces both turned grim. The military-industrial complex of this era was not the one 30 years later, which was cut to pieces by the lords of Capitol Hill with the big axe of "budget."

In this era, as long as the arms dealers claimed it was for the Cold War, they could even get money from Capitol Hill with the design of a transforming tank from "StarCraft." The competition and intrigue between the different branches of the military were constant.

The Army looked down on the Marine Corps, and the First Red Division looked down on other Army units. However, the most intense conflict was between the Army and Air Force on one side and the Navy and Marine Corps on the other.

The roots of this conflict dated back to 1775. The lords of Capitol Hill were always ruthless in cutting military budgets, and the different branches of the military constantly competed for human, material, and financial resources.

After the establishment of the Air Force during World War II, the situation became even more intense. The Army knew it couldn't control the Air Force, so they separated it and pushed for a merger. First, they wanted to concentrate all aircraft, regardless of whether they were for the Army or Navy, under the Air Force. Then, they wanted to merge the Marine Corps into the Army.

However, the Marine Corps, the only armed force directly controlled by the President, would never be handed over to the Army, which was under the command of the Joint Chiefs of Staff.

With the Army's activities, the Navy didn't sit idle. In the end, neither the Army nor the Navy retained land-based aircraft, but they kept the carrier-based aviation units and the Marine Corps, whose size did not shrink.

The Army, having failed to achieve its goals, became even more hostile towards the Marine Corps, and the Air Force was also unhappy with the Navy retaining its aviation units. Thus, the conflict between the Army and Air Force on one side and the Navy and Marine Corps on the other was thoroughly formed, leading to LeMay's statement.

So, Li Xu's point was that if Northrop's opponents used this to persuade the Air Force to unite against them, it would be too easy to make moves, and any negative points would be magnified.

Again, the military-industrial complex of this era was not the one 30 years later, which could only rely on "Fat Electric" to get by. In the peak of the Cold War, no expense was spared for military equipment.

With the Air Force's influence, if they really turned against Northrop, Northrop would have no chance.

The F-20 of the previous life, despite its many problems, was not bad. The short combat radius was its biggest weakness, but the two crashes were not related to the aircraft itself. However, it was ultimately abandoned, and Northrop's investment was lost.

"Besides, Northrop has mostly developed aircraft for the Navy. Is it clear that they have the technical reserves to suddenly cross over and develop aircraft for the Air Force?" Li Xu pressed on, "What you rely on is that the F-16 currently cannot be exported, and you want to take advantage of the time difference. But what if the F-16 gets export approval before you complete development, and your new aircraft cannot outperform the F-16?"

Mars and Johnson's faces became even grimmer, and the latter coughed: "It shouldn't happen so quickly..."

"Can you guarantee that, Mr. Johnson?" Li Xu immediately interrupted rudely.

"No, but business is business..." Mars interjected.

"Business is never just business, Mr. Mars!" Li Xu interrupted again, "Business is business, used to shut others' mouths, not your own!"

Indeed, "business is business" is just like "refined selfishness," a tool to placate the golden-collar workers. If you don't talk it up and make them believe it, how can you make these people work diligently for you?

Business is never a simple matter. The success of a business is the result of multiple factors, such as the perception of one party by the other, the relationship between the two parties, someone intercepting or sabotaging the deal, natural disasters, and if the decision-maker is a woman, even her menstrual cycle.

Profit is indeed an important factor, but it is a necessary condition, not a sufficient one. Or, after the necessary conditions, it is just one of the sufficient conditions, unable to absolutely determine a business deal.

This is like an actress sleeping with a director or producer to get a role. No actress would be foolish enough to immediately beg for a role or ask to be considered after rolling in bed.

Because they all know that the intimate relationship is just one of the factors, and often a minor one, not enough to tip the balance.

But at the right moment, this minor factor can play a decisive role.

Only those with water in their heads, who are fooled into being fools, would take "business is business" as their motto. Who would enslave such people if not them?

Spitting at the sky, the spit will only land on your face, just like the election that shocked everyone 30 years later.

Mars and Johnson were silent, facing Li Xu, who clearly understood the intricacies. They had no excuses, and they also realized that not considering the conflict between the Air Force and Navy was their biggest mistake.

"My goal from the beginning has been to minimize the risks of this project," Li Xu continued, "If the Air Force is persuaded by General, and they stand on their side, once the F-16 gets export approval, the Air Force will definitely make moves against Northrop, and the investment of hundreds of millions of dollars could be lost. So, why not find a partner to share the risk from the beginning?"

"I think we need to seriously discuss this," Mars said after a while.

"Yes, we need to discuss it again," Johnson added with a bitter smile, "You hit our weak spot, little Edward."

"But what are your demands?" Mars suddenly asked directly.

"Previously, Eddie told me that Intel intended to move its production line to Southeast Asia, and that place is one of the options," Grandpa finally spoke, "But he doesn't plan to take the lead, and neither do I."

Mars and Johnson were enlightened, and Li Xu mentally gave a thumbs up. Clearly, Grandpa had shared some of his thoughts, such as wanting to make a move on that island, with them.

This is why Johnson previously said that the Northrop board preferred to send a vice president to negotiate, as the big order on the island was not as important as developing a new generation of export aircraft, and they were not interested in doing the work for others.

But now that Li Xu had convinced them, Grandpa changed the subject, hinting that this was a test for Li Xu and his father. The Northrop board would have to seriously consider it.

This way, it tested Li Xu's preparation and gave him a push at the right time, truly leveraging the situation. Grandpa was indeed experienced.

"So, Pippin must be given sufficient respect," Grandpa concluded.

The two men exchanged glances, whispered a few words, and then Mars spoke: "We will report today's conversation to the board verbatim, Mr. Li. Please rest assured."