Chapter 431: Cairo Meeting 4

The waiter removed the soup bowl and brought out the main course—roast lamb chops with mint sauce. But at this moment, no one cared about the food.

Sir Gray took the floor: "Speaking of the loan agreement, President, this is one of the issues we wish to discuss with you in depth. Your country's loan agreement with Deguo seems… to have been fulfilled in an unusual way."

Chen Feng sliced a piece of lamb, his movements unhurried: "Unusual? I don't quite understand Sir Gray's point. The agreement stipulates that if Lanfang cannot repay in cash, it may offset with equivalent products. Deguo urgently needs naval equipment, and we provide the finest battleships. This is a purely win‑win commercial transaction, fully in line with the spirit of the agreement and international practice."

"But those warships are currently moored at William Port, about to join Deguo's high‑seas fleet," the Navy Department representative, a silver‑haired Admiral, could not help but speak, "They will be used against the Royal Navy, against our merchant ships, prolonging this damned war!"

Li Te responded in a deep voice: "General, weapons have no stance. Just as your country sold warships to the Sakura Nation, which were also used in the Russo‑Japanese War. Commercial transactions should not be given moral judgments."

"This is different!" the Admiral raised his voice, "This is a European war, a clash of civilized worlds! Lanfang, as a non‑belligerent, should strictly maintain neutrality, not supply the warring sides with weapons that can shift the balance of power!"

Chen Feng set down his knife and fork, wiped his mouth corner with a napkin. His movements were slow, exuding a deliberately composed demeanor.

"General," he looked at the Admiral, voice calm but each word clear and forceful, "First, Lanfang has never declared neutrality. We simply have not taken part in the war. Second, if supplying weapons breaches neutrality, then may I ask, do the steel, oil, and grain the United States exported to Yingguo and Faguo count? Does the iron ore Sweden exported to Deguo count? Does the financial service the Netherlands provided to both sides count?"

He scanned the Yingguo delegation: "Since this war began, which major industrial nation in the world has truly remained completely neutral? Or, isn't neutrality itself a condition that can be traded and interpreted?"

The Admiral was at a loss for words. Sir Gray frowned inwardly—Chen Feng's debating skill was formidable; he sidestepped moral accusations, steering the issue toward universality, thereby diffusing the specificity of the charge.

King George V cleared his throat and steered the discussion back to the core: "President, we do not intend to debate the definition of neutrality. But the fact is, the two warships your country supplied to Deguo have indeed had a significant impact on the balance of power in the North Sea. At the same time, your loan agreement with Yingguo has been delayed in fulfillment. This inevitably raises doubts whether Lanfang is … selectively honoring its commitments."

Chen Feng smiled. The smile was faint, yet loaded with meaning.

"Your Majesty has misunderstood," he said, "Lanfang has never delayed performance of the agreement with Yingguo. On the contrary, we have been actively preparing. It was only that previously, your country had not explicitly expressed a desire to settle with in‑kind payment."

He turned to Wang Wenwu. Wang Wenwu immediately retrieved two thick documents from his briefcase and placed them on the table.

"This is an official communiqué from the Lanfang Republic government," Chen Feng pushed the documents toward the center of the table, "regarding the repayment plan for the fifty‑million‑pound loan Lanfang borrowed from the British Empire back then."

Everyone's gaze focused on those two documents.

Chen Feng continued: "According to Supplementary Clause Three of the loan agreement: if, upon maturity, the Lanfang Republic government cannot fully repay principal and interest in cash, it may, with the creditor's consent, offset with equivalent military‑industrial products or strategic materials. We now formally propose: to settle the entire fifty‑million‑pound principal and accrued interest up to August 31, 1916, with Lanfang Navy's active‑service Hood class battlecruisers 'Revival' and 'Restoration Ship'."

He paused, adding: "The two ships have a standard displacement of 42,000 tons, full load 46,000 tons, equipped with eight 15‑inch Main Guns, and a top speed of 31 knots. They are currently at full combat readiness, in excellent condition, with well‑trained crews. Once your country receives them, they can be immediately incorporated into the Royal Navy's battle order."

The hall fell into dead silence.

Everyone on the Yingguo side was stunned. They had anticipated Chen Feng might propose warships as payment, but they did not expect "active‑service vessels," and moreover two complete, combat‑ready capital ships.

Sir Gray was the first to react: "'Revival' and 'Restoration Ship'… are the ones that defeated the Sakura Nation's combined fleet in the East Sea battle? And the one that later roamed the Indian Ocean, letting the Royal Navy drift like a dog!" However he did not utter the latter half. That was so damn embarrassing!

"Exactly," Chen Feng nodded, "They have been battle‑tested and are reliable. If Your Majesty and the gentlemen here are interested, I can provide detailed tactical parameters and combat records."

The Navy Department Admiral eagerly flipped open the documents, scanning the technical data. His eyes widened, his fingers trembled slightly with excitement.

"31 knots… God, that's faster than any of our battlecruisers! 15‑inch Main Guns, armor belt thickness… here it says a 12‑inch inclined arrangement, equivalent thickness…"

King George V watched his naval officers' reactions, feeling a mixture of emotions. On one hand, he indeed coveted these two powerful warships, especially now that Deguo had acquired Bismarck Class vessels. On the other hand, it resembled a transaction—using the empire's loan to obtain weapons that might otherwise have been used against the empire.

"President," the king began slowly, "in principle we can consider this proposal. However, there are several issues that need clarification."

"Please proceed."

"First, price. The fifty‑million‑pound loan, with accrued interest of about six million, totals fifty‑six million. Are the two warships truly equivalent in value?"

"Your Majesty, in 1914 Yingguo's self‑built Elizabeth Queen Class battleship cost about 2.4 million pounds per ship. 'Revival' and 'Restoration Ship' are at least a generation ahead in technology, with superior construction. Adjusted for wartime inflation, each ship's actual value is no less than eight million pounds. Two ships amount to sixteen million. That's only the construction cost! You must understand I am a merchant! Moreover—"

He leaned forward, emphasizing: "—These are active‑service vessels that can immediately generate combat power. If your country were to order comparable ships now, from laying the Keel to commissioning would take at least two years, costing over six million, and would occupy precious dockyard space and skilled labor. How do you account for time cost and opportunity cost?"

Sir Gray exchanged glances with the Navy Department representative. Chen Feng's calculations were forceful yet not without merit. In wartime, time is blood, production capacity is blood. Securing two top‑tier battlecruisers instantly is indeed a huge temptation for the Royal Navy.

"Second," King George V continued, "the reception procedure. Where will the warships be transferred? How will the crews be accommodated? Are the weapons systems and fire‑control equipment on board to be handed over in full? Or, like with the Germans… retain a hand?"

The final sentence carried obvious sarcasm.