AWB Chapter 44 Negotiation: Every Word is a Battle
Chapter 44 Negotiation: Every Word is a Battle
The negotiations were arranged in a conference room at the Palm Palace.
On one side of the long negotiating table were Chen Feng's Lanfang team: Wang Bo, Li Mingyuan (representing the Ministry of Commerce), Liu Yongfu (technical advisor), and two translators and recorders. On the other side were the entire French delegation.
The atmosphere was a bit more relaxed than in the afternoon, but it was still serious.
"Mr. Chen," Dubois began, "let's get straight to the point. We've seen the design of the 'Courbet-class' ships, and it's very impressive. The French Republic is interested in purchasing them. Please provide a price."
Chen Feng did not answer immediately. He opened the folder in front of him, took out a pre-prepared price list, and pushed it across the table.
Dubois took it, glanced at it, and his expression changed.
"Four million pounds... for one ship?"
A collective gasp filled the conference room. Louis Moreau exclaimed in shock, "This is outrageous! The British 'Dreadnought' only cost 1.8 million!"
"But the 'Dreadnought' only has ten main guns and a displacement of 18,000 tons," Chen Feng calmly retorted. "The 'Courbet' class has twelve main guns and a displacement of 25,000 tons. Firepower is increased by 20%, and displacement by 38%. Moreover, our design is more advanced, with unique features in turret layout, protection scheme, and power system."
He paused, then added:
"More importantly, this is a ready-made product—or rather, a near-ready-made product. The British ships have to wait until 1909, and the Germans won't sell to you. But we can guarantee delivery of the first Courbet-class ship within twelve months of signing the contract."
"Twelve months?" Dubois frowned. "Are you sure?"
"Confirmed." Chen Feng nodded. "The prerequisite is that your country can provide the technology and materials we need in a timely manner—this is also part of the quote."
He gestured to Li Mingyuan to distribute another document.
"This is the list of technical support we need from your country," Chen Feng explained. "It includes: complete technology and production equipment for optical rangefinders, formulation and smelting technology for special alloy steel, precision machining technology for large bearings, radio communication equipment technology... a total of twenty-three items."
The members of the French delegation quickly flipped through the list, their expressions growing increasingly grim.
"Mr. Chen, this is outrageous!" Jean-Marc Bertrand, a diplomat in the delegation, protested. "These are core industrial technologies of France! Some even involve defense secrets!"
"Mr. Bertrand," Chen Feng looked at him, "the 'Courbet-class' battleship also involves Lanfang's core technologies. We are willing to share the battleship design, and your country will share some industrial technology; this is a fair trade."
"But four million pounds a ship, plus so much technology transfer..." Dubois shook his head. "Paris won't approve it."
"Then," Chen Feng leaned forward, "we can try another way."
He gestured for Uncle Wang to bring out the third document.
"If cash payments are difficult, we can accept partial resource deductions," Chen Feng said. "France has colonies in Southeast Asia and Africa, and abundant mineral resources: coal and tin from Vietnam, iron ore from Algeria, phosphate mines from Morocco... We can accept using these resources to pay for part of the goods."
This proposal caught the eye of the French.
Paying with colonial resources, rather than cash, would place far less strain on French finances. Moreover, these resources were inexpensive to extract in the colonies and had little value when transported to Europe, but were much less valuable when shipped to the Persian Gulf…
"We need to do some calculations," Dubois said. "Moro, Durand, you estimate the actual construction cost of the Courbet-class."
The two technical experts were calculating rapidly, exchanging ideas in hushed tones.
Chen Feng waited patiently. He knew, of course, the actual construction cost of the Courbet-class destroyers—approximately £2.2 million per ship. His offer of £4 million left ample room for negotiation.
"General," Louis Moreau finally reported in a low voice, "according to our estimates, the construction cost of such a warship should be between two and a half million and three million pounds. Four million is indeed too high, but if technology transfer and rapid delivery are included..."
Dubois understood. He turned to Chen Feng:
"Mr. Chen, four million is too high. We can accept three and a half million per ship, with 50% cash and 50% resources as a deduction. The technology transfer list needs to be reduced to no more than ten items, and they must be civilian technologies."
"Three million eight hundred thousand," Chen Feng countered. "The technology list has been reduced to fifteen items, five of which can be 'limited technology transfer'—meaning we can send people to France to learn, but they won't take the equipment and blueprints with them."
"Three million seven hundred thousand. Twelve technologies, three of which are subject to limited transfer."
"Three million seven hundred and fifty thousand. Thirteen technologies, four of which are subject to limited transfer. In addition, your country needs to commit to giving Lanfang 'de facto recognition' in international forums—not legal recognition, but at least in trade and diplomatic contacts, to treating us as a normal political entity."
Dubois hesitated. The first few conditions were negotiable, but this last one involved diplomatic recognition…
"Mr. Chen, you know this is a sensitive issue," Bertrand interjected. "If the French Republic recognizes an entity that is not recognized by the international community, it will provoke diplomatic protests from other countries, especially the Netherlands and the United Kingdom."
"So what I'm asking for is 'acknowledgment of facts,' not legal recognition," Chen Feng emphasized. "For example, allowing Lanfang to set up a trade office in France, granting us the basic courtesy of a diplomatic mission, and consulting with us on matters involving Chinese people... These don't require public statements, just concrete actions."
Dubois exchanged glances with members of the delegation.
"I need to consult Paris about this condition," he finally said. "But we can continue to discuss the other conditions."
Negotiations have moved into technical details.
Price: The final price was set at £3.8 million per ship, payable in two installments: 50% in cash (in pounds or gold) and 50% offset by mineral resources from the colony. The resource price was calculated at 90% of the international market price to control costs.
Quantity: Five vessels. Delivery schedule: The first vessel will be delivered within twelve months of the contract signing, the second and third vessels within twenty-four months, and the fourth and fifth vessels within thirty-six months.
Technology transfer: Thirteen technologies, four of which are subject to "limited transfer". Specific projects need further negotiation, but optical rangefinder and special alloy technologies must be included.
Additional terms: France promised to grant Lanfang "de facto recognition," including allowing the establishment of trade offices, granting diplomatic privileges, and negotiating matters concerning Chinese people. Lanfang pledged not to transfer its "Kuba-class" technology to any third country, particularly Germany and the United Kingdom.
Confidentiality Clause: Both parties must maintain strict confidentiality regarding this transaction. France is prohibited from disclosing the origin of the warships, and Lanfang is prohibited from disclosing transaction details.