Chapter 57

"Done!" John pulled out a piece of paper, glanced at it, and said affirmatively.

"It's done, but what does this mean!" Habi still looked bewildered. In the past hour, he had truly experienced the Chinese way of doing business. What was supposed to be a straightforward business discussion turned into talk about the weather and the moon, and every time he tried to steer the conversation back, he was rudely interrupted, turning his face red with frustration. But the other party didn't seem to care and left after more than an hour, unsuccessful. Yet, they sent a piece of paper, claiming it was a success. What kind of business was this?

John, who was well-versed in Chinese culture and the ways of the bureaucracy, glanced at Habi with a hint of disdain. Habi clearly understood nothing, not just about Chinese culture but even about reading the room. He had given several hints, but Habi ignored them. However, what could he do? Habi had good luck and had met a benefactor, becoming the head of a major trading company overnight. Suppressing his annoyance, John said calmly, "This piece of paper means a kickback of 30,000!"

"A kickback of 30,000, why? I didn't agree to a price reduction!" Habi's face turned sour, and he said angrily. The installment payment was already a stretch, and now a further reduction was being asked for, which he found completely unacceptable.

"Don't worry, they've already agreed. Besides, this kickback isn't coming out of your pocket. You can increase the price. Go back and calculate the cost, add 30,000 to the guns, and choose the reason yourself. Do I need to explain more?"

John finished speaking and walked away on his own, leaving Habi staring at the piece of paper, dazed, for a long time before he finally left.

This lesson was deeply profound. Habi realized that the Chinese bureaucracy was truly unfathomable. When he returned and told Yang Yuanzhao, Yang laughed heartily. The complexity of the Chinese bureaucracy far exceeded that of the West. It was precisely through a series of internal struggles that China had fallen behind. As for Habi's concerns, Yang didn't care at all. It seemed that besides hiring a large number of foreign employees, De Mei needed to secure some seasoned officials or experienced mentors who were well-versed in the bureaucracy. They could often get things done and save money.

That night, Habi invited the fleet and the guards to load all the equipment onto the ship and send it to Nanjing. The next evening, the fleet arrived in Nanjing, and Xu Shaozhen, who had been waiting, had his people receive the arms. After the inspection, the transaction was completed. The first payment of 170,000 taels of silver was made that day and directly deposited into the Nanjing branch of Citibank.

Habi had originally planned to have them deposit the money into a German bank. In China, German banks were slightly weaker compared to British and American banks. Fortunately, they were all foreigners, so everything was manageable. The exchange of silver proceeded smoothly and would be converted into pounds within a week.

Remarkably, from the initial contact to the completion of the transaction, it only took three days, a win-win situation. Getting the money was one thing, but the first deal represented a significant influx of funds. In total, they recovered over 150,000 silver dollars. This money couldn't be used immediately, but Citibank increased their credit limit, allowing them to use part of it indirectly.

The swift completion of this major deal confirmed De Mei's strength once again. When Habi came back, John thought Habi was there to pay the referral fee. The referral fee was indeed paid, 400 pounds in full, much earlier than the expected 10 days. However, the conditions Habi mentioned next stunned him. Habi's request was simple: to help him make more connections.

To help again? Had he underestimated De Mei's strength? De Mei had not only provided a full set of military equipment but also had the capacity to do more business.

From the perspective of Lihe Trading Company, John should have refused this request. However, the greed that had crept into his heart made him unable to refuse. Often, he had orders but no goods. The powers' control over firearms was much stricter than imagined. A populous, resource-rich, and wealthy China, if fully armed, would be a disaster. Even with the full support of Britain and France, Yuan Shikai took 20 years to establish seven divisions, totaling 70,000 men, with only the strongest fully equipped. It wasn't that he didn't want to, but the prices were too high.

Satisfied with John's response, Habi returned to the trading company. Before he could catch his breath, a large number of low-level officials arrived, all with the same purpose: to buy weapons.

The Chinese bureaucracy was always a market for information. The news that someone in Shanghai had a large number of weapons spread quickly. At that time, the provincial governors and governors-general had a lot of money. From Zhang Zhidong's efforts in modernization, the Hanyang Iron Works, though a money-losing venture, had drained the taxes of the entire Wuhan region, a vast fortune. The Hanyang Iron Works cost tens of millions of taels, but Zhang Zhidong had made several times that amount. The new army had become the mainstream in the bureaucracy, and even if they couldn't match the Beiyang Army, most chose to establish a new army as a show of strength.

Previously, they had no way to get the weapons, but now, hearing the news, they flocked to Shanghai to inquire. Most found De Mei Trading Company, but the high-level officials went directly to John. Lihe Trading Company was the largest German trading company in China, and its status was very high. Some provincial governors, financial commissioners, and admirals sent people directly to John. John felt that this was wrong, but the 400-pound commission, equivalent to 100 ounces of gold, was already in his hands. He referred almost all of them to Habi.

Habi also became busy. The provincial governors wouldn't complete transactions as quickly as in Nanjing, which was an exception. Jiangsu was a wealthy region, and Rui Fang was not a greedy official, so many things progressed quickly, and even the kickbacks were not excessive. However, some were quite greedy.

Fortunately, Yang Yuanzhao was well-prepared. During the days Habi was delivering the goods, the Yang family's chamber of commerce had recruited some people, including a Shaoxing mentor who had served the Hubei financial commissioner for decades. After his master retired, he moved to Shanghai. The Yang family offered a generous salary, and he agreed. With his help, the subtle hints and nuances of the bureaucracy were handled skillfully, making Habi's interactions with local officials smoother and more harmonious.

People had different abilities, but being suitable was key. In just a few days, a long list of preliminary agreements was reached. Each was different, with prices ranging from 150 silver dollars per gun at the high end to 80 at the low end. Habi couldn't help but sigh at the greed.

In summary, the deal in Nanjing was a good start. The agreements would soon be put into practice, accounting for almost half of the inventory, equivalent to the total quota of five to six divisions.

In addition, daily retail sales were continuous. The low-level officials, mostly military officers, drove these sales. They had household troops and personal guards, and their purchases, though small, added up. The daily transactions, involving German-made new guns, set new records.

Almost every day, the transactions exceeded 50,000 silver dollars. In just 10 days, the trading company had achieved an astonishing 1 million silver dollars, equivalent to 100,000 pounds, a significant fortune in that era. Large amounts of cash were deposited into Citibank daily. Yang Yuanzhao kept only a small portion and saved the rest for a trip in one or two months.