Chapter 6: 28 Million Pounds

The list is long, with detailed categories:

1. Industrial equipment:

Skoda Armaments – two large gantry milling machines.

Four 5‑ton class steam hammers.

Twelve precision lathes (suitable for machining gun barrels).

Six 200‑kilowatt generator sets.

One medium‑size steel rolling machine.

Three chemical reaction vessels (usable for producing sulfuric and nitric acids).

2. Raw materials:

5,000 tons of high‑quality steel (Krupp standard).

200 tons of copper ingots.

50 tons of aluminum ingots (in 1905 aluminum was still a rather precious metal).

100 tons of special alloy steel (for armor).

3. Other supplies:

20,000 tons of food (wheat and corn).

5,000 bolts of fabric (cotton and canvas).

10 tons of leather (usable for military supplies).

A batch of medical equipment and medicines.

The list concludes with an estimated total price of about £3.2 million.

"These supplies, at international market prices, are worth roughly £3.2 million," Haus explained. "We intend to use them to offset the cost of two battleships, i. e., £5.6 million. We'll cover the shortfall with cash, about £2.4 million, payable in two annual installments."

He paused, then added, "Mr. Chen, I know this plan is somewhat complicated. But you may be aware of the Austro‑Hungarian Empire's finances… The parliament quarrels endlessly each year over naval appropriations, ethnic issues, political struggles… If we were to request a cash outlay of £8.4 million, the proposal would never pass. However, framing it as 'exchanging surplus domestic industrial capacity for advanced warships' would encounter far less opposition."

Chen Feng did not answer immediately. His fingers lightly tapped the table as his mind raced.

This list was practically tailor‑made for him!

Industrial equipment—exactly what he needs most right now. Although a basic industry has been established, high‑end processing capacity remains lacking. Skoda's machine tools and Krupp steel are the kind of quality that even wealth cannot always secure.

Raw materials—can be fed straight into production, eliminating procurement and transport steps.

Food and fabric—300,000 immigrants need to eat and clothe themselves; these supplies can greatly ease logistical pressure.

More importantly, this barter method can bypass the oversight of the international financial system. Directly receiving cash in the millions would quickly attract the attention of the London and Paris financial markets. But goods transactions—especially dispersed, multi‑type ones—are far more covert.

"Your Excellency the Admiral," Chen Feng finally said, "I'm interested in this list, but I have two conditions."

"Please, go on."

"First, every piece of industrial equipment must come with an operating manual, a maintenance guide, and… if possible, two technical instructors per unit to work here for at least six months, ensuring our workers become proficient."

Haus glanced at his accompanying industrial consultant, who nodded in agreement.

"Second, the delivery of food and fabric must be phased and completed within twelve months. We need time to build storage facilities."

"That's acceptable," Haus exhaled, "Now, regarding price…"

"For the goods offset, I'll calculate at a 10 % discount to market price," Chen Feng said. "That's £2.88 million. The two ships total £5.6 million, leaving a £2.72 million cash gap. You may pay that over two years: £1.5 million the first year, £1.22 million the second, at an annual interest of 4 %, lower than Deguo's terms."

Haus quickly did the math. A 10 % discount is reasonable, given the costs of transporting and delivering massive supplies. An interest rate of only 4 % is even more favorable.

"Deal," he said, extending his hand.

Chen Feng grasped his hand: "A pleasant cooperation. However, I have another suggestion."

"Please, go ahead."

"Could the Austro‑Hungarian Empire consider selling some… less sensitive military technologies?" Chen Feng lowered his voice. "For example, non‑core patents from Skoda Armaments on artillery manufacturing, or certain metallurgical formulas? We could exchange them for a more favorable price."

Haus was stunned. He hadn't expected the young man's focus to be so sharp—no money, but technology.

"That… I'll need to consult Vienna," he replied without an immediate refusal. "But in principle, if the technology doesn't involve the latest military secrets, it may be negotiable."

"Very well," Chen Feng smiled. "Then let's finalize the battleship contract first. The technology transfer can be discussed gradually."

Next is Argentina.

General Lu Han's proposal was the simplest: "One ship, full cash payment. We have the funds ready—partly from state finances, partly from donations by private patriots." He paused, "but I have a special request."

"Please, continue."

"This battleship must be delivered within one month," Lu Han said firmly. "Moreover, I want it to fly the Argentine flag, be crewed by Argentine sailors, and sail directly from the Persian Gulf back to Buenos Aires. It will be a… demonstration."

Chen Feng understood immediately. The arms race between Argentina and Chile had reached a fever pitch; whoever first obtained a modern battleship could showcase power to the populace and gain leverage at the negotiating table.

"Agreed," Chen Feng nodded. "But the training period will be compressed to two months. Moreover, I must remind you that even the best crew needs at least six months of combat training to fully master such a modern battleship. Two months can only guarantee basic navigation and combat operations."

"That's sufficient," Lu Han said. "As long as it can sail back to Argentina, fire a few shots off the coast, and let those Chileans in Santiago hear the cannon fire, that will do."

The bluntness made everyone in the conference room laugh. Even the usually stern Tirpitz showed a faint, understanding smile—international rivalry can be that straightforward.

"One more question," Lu Han added. "Can you guarantee that the ship's design plans won't be leaked to Chile?"

"I guarantee it in the name of the Lanfang Revitalization Project," Chen Feng said solemnly. "We have no contact with Chile now or in the future. Moreover, Argentina is purchasing an active‑service vessel, and we will ensure all technical data is exclusively provided to your country."

"Thank you," Lu Han extended his hand. "Then, £2.8 million, delivery within one month. Training fees separate?"

"The training fee is included in the total price," Chen Feng was generous this time. "Consider it a concession for the first client paying the full amount in cash…"

"Deal."

That evening, three draft contracts were preliminarily prepared.

Deguo: six Dauntless‑class battleships, total £16.8 million. 50 % down payment, the balance payable over three years at 5 % annual interest. Training fees separate.

Austro‑Hungarian Empire: three ships, total £8.4 million. Two ships offset by goods (discounted £2.88 million), one paid in cash (£2.8 million), the remaining £2.72 million payable over two years at 4 % interest.

Argentina: one ship, cash £2.8 million, delivery within one month.

The three contracts total £28 million. In 1905, that was a sum large enough to shake the economies of medium‑sized nations.