Chapter 44: Negotiation: Every Sentence Is a Contest

The negotiations were arranged in the conference room of the Palm Palace.

Along the long negotiation table, on one side was Chen Feng's Lanfang team: Wang Bo, Li Mingyuan (representing the Ministry of Commerce), Liu Yongfu (technical advisor), plus two translators and clerks; on the other side were all members of the French delegation.

The atmosphere was a bit more relaxed than in the afternoon, but still solemn.

"Mr. Chen," Dubois spoke first, "Let's be frank. We've seen the design of the Isolated-class; it's very impressive. The French Republic is interested in purchasing. Please quote a price."

Chen Feng did not answer immediately. He opened the folder in front of him, took out a prepared quotation sheet, and pushed it across the table.

Dubois took it, glanced at it once, and his expression changed.

"Four million pounds... per ship?"

A sound of sharp intake of breath filled the conference room. Louis Moro exclaimed directly, "This is too expensive! The British 'Fearless' costs only 1.8 million!"

"But the 'Fearless' has only ten main guns and a displacement of 18,000 tons." Chen Feng calmly rebutted, "The Isolated-class has twelve main guns and a displacement of 25,000 tons. Firepower increased by 20%, displacement by 38%. Moreover, our design is more advanced, with distinctive features in turret layout, protection scheme, and propulsion system."

He paused, then added:

"More importantly, this is ready stock—or rather, near-ready stock. The British ships have to wait until 1909, and the Germans won't sell to you. But we can guarantee delivery of the first Isolated-class within twelve months after signing the contract."

"Twelve months?" Dubois frowned, "Are you certain?"

"Certain." Chen Feng nodded, "Provided your country can promptly supply the technology and materials we need—which is also part of the quotation."

He gestured for 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 the optical rangefinder, formulas and smelting technology for special alloy steel, precision machining technology for large bearings, radio communication equipment technology... a total of twenty-three items."

The French delegation members quickly flipped through the list, their faces growing grimmer.

"Mr. Chen, this is outrageous!" the delegation's diplomat Jean-Marc Betrand could not help but protest, "These are France's core industrial technologies! Some even involve national defense secrets!"

"Mr. Betrand," Chen Feng looked at him, "The Isolated-class battleship also involves Lanfang's core technology. We are willing to share the warship design, and your country shares some industrial technology—that is a fair trade."

"But four million pounds per ship, plus all this technology transfer..." Dubois shook his head, "Paris will not approve it."

"Then," Chen Feng leaned forward, "we can try another approach."

He gestured for Wang Bo to take out the third document.

"If cash payment is difficult, we can accept partial offset with resources," Chen Feng said. "France has colonies in Southeast Asia and Africa, rich in mineral resources: Vietnam's coal and tin, Algeria's iron ore, Morocco's phosphate... we can accept payment of part of the price with these resources."

This proposal made the Frenchmen's eyes light up.

Paying with colonial resources instead of cash greatly reduces France's financial burden. Moreover, these resources have low extraction costs in the colonies, their value is not high when shipped to Europe, but when shipped to the Persian Gulf...

"We need to calculate this," Dubois said. "Moro, Duran, estimate the actual construction cost of an Isolated-class."

The two technical experts quickly calculated, whispering to each other.

Chen Feng waited patiently. He of course knew the actual construction cost of the Isolated-class—about 2.2 million pounds per ship. Quoting four million left ample negotiating room.

"General," Louis Moro finally reported in a low voice, "According to our estimate, the construction cost of such a battleship should be between 2.5 million and 3 million pounds. Four million is indeed high, but if it includes technology transfer and swift delivery..."

Dubois had figured it out. He turned to Chen Feng:

"Mr. Chen, four million is too high. We can accept 3.5 million per ship, with fifty percent cash and fifty percent resource offset. The technology transfer list needs to be cut to ten items or fewer, and must be civilian technology."

"3.8 million," Chen Feng countered. "The technology list can be compressed to fifteen items, of which five can be 'limited technology transfer'—meaning we can send personnel to France to study, but without taking equipment or drawings."

"3.7 million. Twelve items of technology, three limited transfers."

"3.75 million. Thirteen technology items, four limited transfers. Moreover, your country needs to commit to granting Lanfang 'de facto recognition' in international settings—no legal recognition required, but at least in trade and diplomatic contact, to regard us as a normal political entity."

Dubois hesitated. The earlier conditions could be discussed, but this last one involved diplomatic recognition...

"Mr. Chen, you know this is sensitive," Betrand the diplomat interjected, "If the French Republic recognizes an entity not recognized by the international community, it will provoke protests from other countries, especially the Netherlands and the United Kingdom."

"So I am asking for 'de facto recognition,' not legal recognition," Chen Feng emphasized. "For example, allowing Lanfang to set up a trade office in France, granting our diplomatic mission basic courtesies, consulting with us on Chinese affairs... these do not require public announcements, only actual practice."

Dubois exchanged glances with the delegation members.

"This condition, I need to seek instructions from Paris," he finally said, "but the other conditions we can continue to discuss."

The negotiations moved into technical details.

Price: finally set at 3.8 million pounds per ship, payment method fifty percent cash (pounds or gold), fifty percent offset with colonial mineral resources. Resource prices calculated at ninety percent of international market prices to control costs.

Quantity: five ships. Delivery schedule: first ship delivered within twelve months after contract signing, second and third within twenty-four months, fourth and fifth within thirty-six months.

Technology transfer: thirteen items, four of them "limited transfer." Specific items to be further determined, but the optical rangefinder and special alloy technology must be included.

Additional clauses: France commits to granting Lanfang "de facto recognition," including allowing the establishment of a trade office, extending diplomatic courtesies, consulting on Chinese affairs, etc. Lanfang commits not to transfer Isolated-class technology to third countries, especially Germany and the United Kingdom.

Confidentiality clause: both parties must strictly keep this transaction confidential. France may not disclose the warship's origin, and Lanfang may not disclose the transaction details.