Chapter 798: The One Being Restricted Is the Supplier
"Mm, good, you continue." Even though Baifeng was earnestly explaining the use of wax to Xuanyuan, Xuanyuan still felt that wax did not have much use for the Xuanyuan Tribe. In this current era, there were too many things that could be used to start a fire; they were not lacking a wax, and as for sealing things, the Xuanyuan Tribe had no need for that either.
"Mm, given the uses of this wax and its production volume, we certainly cannot offer a very high price. After all, we in Huaxia also have enough substitutes. So, the price I can offer is fifteen to one, but that is the ratio of wax to grain—fifteen catties of wax in exchange for one catty of grain, and the grain would be Bean Dregs. How do you find this price?"
Once Xuanyuan thought of the lush white Wax Seed on the Chinese Tallow Trees, he felt this price was quite acceptable. Because the yield was high and it could also fall off naturally, birds would not eat this stuff either; whatever amount there was would all fall to the ground, and in the end, wouldn't it all belong to his Xuanyuan Tribe? It only required the expenditure of labor, and specifically, cheap female labor, to pick it up under the trees, or at most, to climb the trees to pluck it.
Just like Tea Leaves, it could be considered a transaction with no cost. The price and such were no longer very important, as long as it did not make the expenditure greater than the income. Moreover, the season for harvesting wax could be placed entirely after the Autumn Harvest, when there was not much work to do and no food to collect, so one could go do it then. This was entirely an extra income during the agricultural slack season.
"Fine, this price is no problem, but I still need you to guarantee that for a period of five years, you will not change this price; it cannot be lowered. As long as you agree to this requirement, I believe the cooperation can be reached." Xuanyuan was still afraid that this deal might not go through, so he added an extra condition.
"Fine, regarding the price, I can guarantee that within five years, it will not be lowered again. But I also have a requirement, which is that every year, you must provide a minimum quota of wax to us in Huaxia. As for what that quantity is, it will depend on how much you are able to collect this year so that we can judge the production capacity of the Xuanyuan Tribe. How about that?" Baifeng also gave the Xuanyuan Tribe a restrictive condition. The price could remain stable, but it also had to be restricted; what if the Xuanyuan Tribe discovered that wax was truly useful and prioritized their internal needs, thereby reducing the supply to Huaxia?
Xuanyuan did not hesitate: "Good, I can also satisfy your condition. But, this kind of wax, like all other trees and plants, might suffer from reduced yields due to the influence of other factors. If that happens, even if we search the entire Xuanyuan Tribe, we might not be able to collect the minimum quota of wax seeds you require. What should be done in such a situation?"
Hiss... This was indeed another problem, and it was not just about wax; other crops that Huaxia needed might also face such a situation. Sure enough, problems could only be discovered during the specific process of operation. Fortunately, no similar problems had appeared yet; otherwise, it would be a trouble for both sides. Perhaps the greater trouble lay with Huaxia, because the Xuanyuan Tribe was the supplier, and only Huaxia was in urgent need.
Baifeng raised his hand to call for a pause: "This problem might be a bit complicated. I have a preliminary idea now, which is a guaranteed minimum system. That is to say, we in Huaxia will set a particularly low quota, which is a minimum standard for production that will not be affected no matter how severe the damage the Xuanyuan Tribe suffers."
Under this standard, it is the goods that the Xuanyuan Tribe must provide to Huaxia every year. If they cannot meet it, then the entire contract is void. And if it is because the Xuanyuan Tribe unilaterally simply does not want to provide them to Huaxia, then all our transactions will be affected, because this is a manifestation of not keeping one's word.
If this minimum quota is not met, Huaxia will not provide payment, which is equivalent to the Xuanyuan Tribe giving it for free. If it is met, then the minimum price is paid. After that, it is a tiered progression: the more goods you provide, the higher the price we offer. Then, we set a maximum quota; for the quantity of goods exceeding this quota, all goods will be calculated according to this highest price.
In this way, I think it is the best method. It proposes restrictions for both of our tribes. You cannot refuse to provide us with goods because of your subjective thoughts; the more you give, the more price you can get. At the same time, it also guarantees your interests. It can be considered a supplementary condition for all transactions. I think this clause can be added to all goods transactions, not just wax. Of course, you must approve it first."
After Xuanyuan chewed on it and thought it over carefully, he felt somewhat dissatisfied: "In this way, the restriction on our Xuanyuan Tribe is too great. We are the ones being restricted, while for you in Huaxia, it is all advantageous. I think this is not good."
Baifeng waved his hand: "No, no, things are not looked at this way. This treaty does not restrict your Xuanyuan Tribe, but simply the supplier. This supplier can also be us in Huaxia. Your Xuanyuan Tribe always has a need for things from our Huaxia, right? You can similarly use this treaty to restrict us in Huaxia."
"With the restrictions of the treaty, the interests of your Xuanyuan Tribe can also be guaranteed. Furthermore, it is not just between our two tribes; when you trade with other tribes, you can also restrict them this way. Think about it, isn't that the logic?"
Zhishou cast an approving look at Xuanyuan. Xuanyuan thought for a moment; it was indeed that logic. Huaxia was purchasing various things in large quantities from the Xuanyuan Tribe, among which various seeds and plants were the most important. The Xuanyuan Tribe also needed to purchase various products here in Huaxia; the demand for things like paper, which only Huaxia could produce, would only grow larger and larger for the Xuanyuan Tribe in the future.
The Xuanyuan Tribe did not have the production technology for these things. If they became completely dependent on these things but had no ability to manufacture them themselves, and if Huaxia suddenly said they would not provide them for some reason, their previous treaties would have no sufficient binding force to restrict them. If one looked at this newly proposed treaty, then the interests of the Xuanyuan Tribe could also be guaranteed.
Having thought through the pros and cons, Xuanyuan no longer hesitated and agreed immediately, but also stated: "I agree with your plan, but the previously signed treaties need to be supplemented according to this clause. Only in this way can we truly achieve the goal of restricting the supplier and guaranteeing the interests of the purchaser, rather than simply restricting our Xuanyuan Tribe."
Baifeng was naturally happy, but his plan was still too sloppy, so he proposed: "That is fine, but this plan was thought up by me on the spur of the moment. There might still be many loopholes and it is somewhat sloppy. For now, let us rest first. I will have our officials supplement and correct this plan, and then you can take a look at it. How about that?"
"No problem."
End of Chapter
