Chapter 107 Bargaining
The government departments are very clear about these things, but Liu Haoran is a little aware of them. After all, he considers the problem, and most of them are based on business perspectives.
The Kara Canal is a replacement for the Strait of Malacca. Once the Kara Canal is completed, even if all ships passing through the Strait of Malacca will be diverted, it will be reduced by at least by more than half.
Among them, most tankers may give up the Melaka route and choose to pass through the Kara Canal.
The reason why Singapore has today's prosperity is largely due to its advantage in the throat area of the Strait of Malacca, which has just emerged from Malaysia. Its economic development relies entirely on maritime trade and on the Strait of Malacca
Since China has become an industrial power, hundreds of millions of tons of goods pass here every year. Singapore has now become one of the seven major commodity trading centers in the world. The marine transportation and trade industries are very developed and have become an important pillar of the local economy.
Although due to historical reasons, Singapore is a pro-revolutionary Chinese country and has a strong resistance to the Chinese Federation, so it is not favored by the current government.
For the sake of reputation and principle, the Hualian government did not impose sanctions on this country with Chinese as the main body, but instead adopted an economic and cultural infiltration method.
Economically, Qingzhu Chemical is undoubtedly the one who invests the most here. Yi Zhongming is building a large-scale oil smelting industry here. More than 90% of the crude oil transported from the Arabian Peninsula will be refined in Singapore and then transferred to the market.
If Xinghua News Agency wants to dig the Kara Canal, it will undoubtedly declare war on Qingzhu Chemical
You should know that the reason why the Thai government has vigorously promoted the Kra Canal plan is because it is jealous of the huge profits Singapore has obtained from oil reexport trade
As early as the 1950 plan, the Thai government proposed to rely on the Kra Canal to build a southern industrial zone, including fertilizers, steel, petrochemicals, export processing trade, ship repair and other industries. All of these industries are alternatives to Singapore's existing industries.
In the previous year's plan, the Thai government made it unabashedly proposed to build large refineries, oil storage facilities and other facilities at both ends of the Kara Canal, which is the basis for building an oil trading center.
Inspired by the Thai government, multinational energy giants such as Unicorn, Mobil, and Shell in the United States expressed their intention to invest in the construction of oil trade and refining centers to Thailand.
Faced with the Thai government's "robbery" behavior, the political and business circles in Singapore were shocked. While they denied the Kara Canal plan in the media, saying that this plan actually does not make money.
Even threatened that if a country wants to invest in the Kra Canal plan, it must prepare for funds to be embezzled by Thai officials.
On the other hand, it launched a shuttle diplomacy, and jointly resisted the Kra Canal plan with other Southeast Asian countries and even the entire Asia.
As the overlord of Asia, China is no less interested in the Kra Canal than anyone else, so it has become an important goal for Singapore to lobby.
In order to maintain the so-called "China-friendly relations", the Hualian government adopted a silent attitude towards the Kra Canal plan, that is, it did not clearly object to it, nor did it publicly support it. As for the Chinese investment expected by the Thai government, there was no news.
Liu Haoran had never heard of the Kara Canal before, and it was also because of the country's deliberate and low-key handling of public opinion.
In addition, there are some professors in China who are paid by Singapore and the newly sprouted pens, who are constantly pouring cold water on the Kra Canal plan, which also makes it impossible for discussion of this plan to form a climate in China.
However, after receiving a report from the Xinghua News Agency Intelligence Department, Liu Haoran decided to come to Thailand in person to see if there was any chance to intervene. The first time he came to Thailand was to inform Xinghua News Agency's "friend" Jirapon in the local area, a native of pro-China Thai government official who was born and raised.
As a senior official of the Thai government, Jilapeng always has the string of the Kra Canal in his mind. Now, when Liu Haoran talks about the defeat in Singapore, he will certainly not miss such an excellent opportunity.
Liu Haoran is Liu Yongzhuo's father. Gilapeng dared not neglect the customer in front of him because of his "funding" dealings with Huayang Heavy Industry.
He knew that Liu Haoran was an entrepreneur with some energy in China, so he hoped to take this opportunity to instill the idea of the Kra Canal into the other party
Seeing Liu Haoran's confused look, Chen Tian couldn't help but pull him aside, and introduced the causes and consequences of this matter to him. Liu Haoran was stunned when he heard it all. After hearing it all, he let out a long sigh and asked, "Chen Tian, it turns out that you have always known that this is the case?"
Chen Tian is from the Foreign Trade Department of the Government and has an official identity. This time he is sent to Thailand, but it is just a way. Anyway, the two have known each other for a long time and have a good relationship.
"Nonsense, what am I doing? The Kra Canal is both an economic issue and a very sensitive international political issue. How could I not know?" Chen Tian said dissatisfiedly.
Liu Haoran said: "Since you have known it for a long time, why haven't I heard you talk about it? If Jilapeng didn't mention it, would you not want to mention this matter at all? I'm still in the dark."
This time it was Chen's turn, Chen Tian was stunned. He asked, "Haoran, don't you want to say that you are really interested in this plan?"
"Why not?" Liu Haoran asked back
Chen Tian thought for a while and said, "The construction of the Isthmus of Kra will bring a devastating blow to Singapore's economy, which will inevitably lead to strong dissatisfaction from the Singapore government. Moreover, Qingzhu Chemical is a large group standing behind Singapore, and its economic interests are one with Singapore, so..."
"So we should be afraid, we should retreat?" Liu Haoran said bluntly: "The reason why the Singapore government dares to call it so fiercely is not because the Hualian government has been giving in and compromising? The cabinet is concerned about the pressure of Qingzhu Chemical. I am not afraid. Although Zhongming and I have been friends for many years, business is business."
"Our government's policy is to coexist peacefully and not to interfere in the internal affairs of other people at will. This principle was proposed since the first generation of heads of state, and it is still timeless today," Chen Tian explained
This is basically nonsense. The so-called non-discipline of interfering in other countries' internal affairs is entirely based on China's strength and interests. Are there few so-called "democraticly elected" countries supported by the Hualian government throughout Asia and Eastern Europe?
But even though that is the case, Liu Haoran still understands that he needs to do enough face.
"Chen Tian, I remember you said it myself two days ago. If someone doesn't offend me, I won't offend others. If someone offends me, I will offend others. Now that Singapore has bullied the government, why do we still mention peaceful coexistence? Isn't this self-deception?" Liu Haoran said this on purpose.
Chen Tian frowned and began to realize that Liu Haoran's words might be right.
The government strives to show the image of a magnanimous and generous country in many things. It has always adopted a patient attitude towards some forces in the system. When making major decisions, it must also strive to avoid deteriorating their relationship.
As an overseas Chinese country and with the support of Qingzhu Chemical Group, Singapore does not need to look too far from the face of the Hualian government and even has an aggressive attitude in some key interests.
"However, our country does not participate in the construction of the Kra Canal. In addition to political considerations, there are also economic considerations?" Chen Tian himself found a step for himself and the Hualian government.
"We have asked experts to conduct an argument. Experts believe that after the completion of the Kara Canal, it can only save more than 1,000 kilometers of transportation routes, compared with a voyage of tens of thousands of kilometers, the savings are not large. The investment in building the Kara Canal is not small. It may take decades to recover these investments and is not economically feasible."
"I'm a pussy" Liu Haoran said contemptuously, "Your security department will check the old evidence of these experts. I guess one of them is calculated. How big is the investment of 20 billion yuan for commercial literati who are all funded by Singapore or Qingzhu Chemical? "
"How do we calculate the safety value of this using 20 billion to open a channel for our country? According to their theory, the fuel cost consumed by the navy to escort the Gulf of Aden is greater than the loss of merchant ships being robbed by pirates. Wouldn't we go?"
"What you said makes sense," Chen Tian nodded and said
He is a government official. When he thinks about problems, he is greatly constrained by the rules and regulations of national policies and unknowingly he will fall into a fixed mindset.
Liu Haoran is a market-oriented person, and with the innate advantage of the helmsman of a large group, he is unconventional in thinking about problems. This is also the reason why Chen Tian is willing to do business with Liu Haoran.
After hearing Liu Haoran's statement, Chen Tian had to admit that Liu Haoran's idea was correct.
As for why Liu Haoran said this, it was nothing more than trying to take on this project with the government. Instead of taking over all the benefits themselves and then endorsing the joint counterattack between Qingzhu Chemical and Singapore, it would be better to drag the Hualian government into the water and serve as a shield.
Hearing Chen Tian's approval, Liu Haoran was excited and continued, "Chen Tian, I tell you how much freight can be saved, secondly. As long as the 20 billion yuan we spent can cure a disobedient child wolf, I think it is worth defending the dignity of the government. Do I need to be so petty?"
"This... is a bit too radical," Chen Tian said with a wry smile, "Haoran, this is not something that you, a company, can decide. We at least need to go back and ask our superiors before we talk about it?"
"How to make a decision is your business. I'll go and chat with Jilapeng first." Liu Haoran waved his hand indifferently, making a joke, he was not in a hurry
Chen Tian pulled Liu Haoran aside for a secret talk, and Jilapeng stood there waiting for them.
Jilapeng knew that the other party would definitely have to discuss something like this. If it really was to make this happen, I'm afraid the two sides would have to negotiate for several years.
The Thai government has been promoting the Kra Canal internationally for many years, and has not made a substantial breakthrough yet. What is the other party’s secret conversation for a few minutes?
Compared to unreliable Americans, Jirapon is still willing to trust Chinese friends
When Liu Haoran appeared in front of Jilapeng again, his face was already confident. He asked Jilapeng: "Minister Jilapeng, Mr. Chen has some understanding of this. He has introduced it to me just now. I want to ask, what is Thailand's current consideration for this plan and how much benefits are planned to share with partners?"
This is Liu Haoran's style of speaking. Someone needs to go around a few circles to say it. He directly revealed that Jilapeng is quite familiar with Liu Haoran's style and does not think there is anything abrupt.
"According to the results of the research conducted by the United States, Germany, and Britain and other countries in the Kra Canal Planning Office, the plan we have launched now, called the Southern Line, is from Songkhla on the Andaman Seashore to Satun on the Gulf of Thailand, with a total length of 102 kilometers."
"This route is 12 kilometers more than the North Line plan, but the whole terrain is flat and digging is less difficult. We estimate that the entire project requires an investment of 20 billion Huayuan, and the construction cycle is about 15 years." Jilapeng introduced that they have also found European and American companies and do not listen to everything.
"15 years is too long. Looking back, I will give you a few people from China to re-evaluate and invest more mechanized equipment. I think 5 years is enough." Liu Haoran said domineeringly.
Such confidence is well-founded, and the progress of some foreign projects is really painful.
If the same project is placed in China, half or one-third of the time may be enough to be completed, but abroad, it will take several times more time.
Liu Haoran has high expectations for the Kra Canal plan, and of course he is unwilling to spend 15 years waiting for a result.
"Mr. Liu, are you saying that you plan to invest in this project?" Jilapeng heard the subtext in Liu Haoran's words and couldn't help but be overjoyed.
Liu Haoran's own company can certainly be completely won by a 20 billion Chinese-yuan multinational project, but as long as Liu Haoran's mind is not broken, he will not want to take over this hot potato.
Since the Hualian government intends to participate, it is not difficult to raise 20 billion with the energy of the state power, Liu Haoran is willing to share the risks with the country.
Liu Haoran said: "I am indeed a little interested in this project, but whether to invest or not needs to listen to what conditions you can give me. I am a businessman, and I will never do anything that is not good."
"There are benefits, there are benefits," said Jilapeng. "The Kra Canal adopts a joint share operation method. Each investor allocates the tolls of the canal according to the investment ratio. According to the calculation of 50,000 ships per year, all investments can be recovered in about 10 years. After 10 years, the canal can provide shareholders with an investment return of no less than 3 billion Chinese yuan each year."
Liu Haoran is not very good at calculating investment returns. In the company, other specialized economics experts are responsible for doing things like this.
However, Chen Tian had already given him the final report. If the Kara Canal wants to recycle investment by relying solely on tolls, the entire project recycling fee will be at least 20 years. In order to attract his investment, Jilapeng obviously exaggerated the returns seriously.
Liu Haoran did not expose Jilapeng's lies either. He just smiled slightly and said, "Minister Jilapeng, we will wait for detailed calculations in the future for the return on investment. I am not as optimistic as you."
Having said that, Liu Haoran did not refuse at all, but changed his tone: "I intend to invest in the construction of this canal mainly for the convenience and safety of overseas transportation of our Xinghua community. Therefore, I may not care much about the return on investment, but I need absolute control of the canal."
"Absolute control?" Jilapeng was stunned, "You mean, do you want to take control?"
"Yes, controlling rights" Lin Zhenhua said, "at least 51% of the power"
Jilapeng said with a bitter face: "Mr. Lin, for projects like this, there is no need for 51% of the controlling stake. In fact, you only need to occupy more than 15% to ensure that you have the right to decide on the board of directors."
Liu Haoran asked curiously: "What do you mean? Are you unwilling to pay more if we want to pay more? We want 51% of the equity, which means we have to bear at least 51% of the investment. You don't want such a large investment?"
"Of course I want it," said Jilapeng. "In fact, it is very difficult for us to raise funds now. There are many countries and enterprises that express their investment intentions, but there are very few that really pay. If China can afford 51%, or even more, then we can start construction without waiting for other investments to be in place. How could we not want such a good thing?"
"What do you mean?" Liu Haoran asked
Jila Peng looked at Shen Tian, and seemed a little hesitant
Liu Haoran pointed at Chen Tian and said, "Minister Jilapeng, the wise man will not talk about secret celebration. Mr. Shen, the upper class of the Chinese Federation is quite influential, everything we say between us will eventually rely on him to convey to the upper class of the Chinese Federation. You think about it. Do you really don't want him to participate?"
Jilapeng shook his head quickly: "No, no, when I saw Mr. Shen, I thought he was a very trustworthy friend. If there was anything, I naturally wanted to ask Mr. Shen for advice... I mean, Chinese companies want to hold shares in Kra Canal, and this matter may encounter some obstacles in Thailand."
Liu Haoran wants to control the Kara Canal. Not to mention Jila Peng feels embarrassed, even Shen Tian listens on the side, and it feels incredible.
The significance of the Kara Canal compared to Thailand is no less than the significance of the rocket project to China. This canal is related to Thailand's economic development and Thailand's national security. How can such a project be handed over to foreigners to manage? To be continued)
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Chapter completed!