Chapter 6

£2800 million

The list is long and categorized in detail:

I. Industrial Equipment:

Two large gantry milling machines produced by Skoda Arms Plant

4 steam hammers (5-ton class)

12 precision lathes (for machining gun barrels)

6 sets of generator sets (200 kW)

One set of medium-sized rolling mill

3 sets of chemical reaction kettles (for producing sulfuric acid and nitric acid)

II. Raw Materials:

5000 tons of high-quality steel (Krupp standard)

200 tons of copper ingots

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

100 tons of special alloy steel (for armor)

III. Other supplies:

20000 tons of grain (wheat, corn)

5000 bolts of cloth (cotton, canvas)

10 tons of leather (which can be used to make military supplies)

A batch of medical equipment and medicines

The list ends with an estimated total price: approximately £320 million.

"These supplies, according to international market prices, are worth approximately £320 million," House explained. "We hope to use these supplies to offset the cost of the two warships, which is £560 million. The difference will be covered in cash, approximately £240 million, which can be paid in installments over two years."

He paused, then added, "Mr. Chen, I know this proposal is somewhat complicated. But the finances of Austria-Hungary... you may be familiar with them. Parliament argues endlessly every year about naval funding, ethnic issues, political struggles... If we propose an expenditure of £840 million in cash, the proposal will absolutely not pass. But if it's about 'exchanging excess domestic industrial capacity for advanced warships,' there will be much less opposition."

Chen Feng did not answer immediately. He tapped his fingers lightly on the table, his mind racing.

This list is practically tailor-made for him!

Industrial equipment—that's exactly what he urgently needs right now. Although basic industry has been established, high-end processing capabilities are still insufficient. Skoda machine tools and Krupp steel are high-quality items that money can't always buy.

Raw materials can be directly used in production, eliminating the need for procurement and transportation.

Food and cloth – these supplies would greatly alleviate logistical pressures for 300,000 immigrants who needed food and clothing.

More importantly, this barter system allows them to bypass the monitoring of the international financial system. Directly receiving millions of pounds in cash would quickly attract the attention of the London and Paris financial markets. However, the trade of goods, especially dispersed and diverse trades of goods, is far more discreet.

"General," Chen Feng finally spoke, "I am very interested in this list. But I have two requests."

"Speaking."

"First, all industrial equipment must come with an operation manual, maintenance guide, and... if possible, two technical instructors for each piece of equipment, who will work here for at least six months to ensure our workers are proficient in operating it."

House glanced at the accompanying industrial consultant, who nodded in agreement.

"Secondly, the delivery of grain and cloth needs to be completed in batches over twelve months. We need time to build storage facilities."

"That's acceptable." House breathed a sigh of relief. "So, regarding the price..."

"I'll calculate the cost of the goods at 90% of the market price," Chen Feng said. "That's £288 million. The total price of the two ships is £5.6 million, so the difference is £272 million. You can pay this cash in two installments: £1.5 million in the first year and £122 million in the second year. The annual interest rate is four percent, which is lower than the German terms."

House quickly did the calculations. A 10% discount was reasonable, considering the costs of transporting and delivering large quantities of supplies. And the interest rate of only four percent was even more favorable.

"Deal." He held out his hand.

Chen Feng shook his hand: "It's been a pleasure working with you. However, I have another suggestion."

"Please speak."

"Could Austria-Hungary consider selling some... less sensitive military technologies?" Chen Feng lowered his voice. "For example, some non-core patents of Skoda Arms Factory in artillery manufacturing? Or some metallurgical formulas? We can exchange them for a more favorable price."

House was stunned. He hadn't expected this young man to have such a sharp eye—he wanted technology, not money.

"Well... I need to consult Vienna." He didn't immediately refuse, "but in principle, if it doesn't involve the latest military secrets, perhaps we can talk."

"Very good." Chen Feng smiled. "Then, let's finalize the warship contract first. We can discuss the technology transfer later."

Next up is Argentina.

General Luhan's proposal was the simplest: "One ship, entirely in cash. We have the funds ready—partly from the national treasury, partly from donations from private patriots." He paused, "but I have one special request."

"Speaking."

"This warship must be delivered within a month," Luhan said firmly. "And I want it to fly the Argentine flag, be piloted by Argentine crew, and sail directly from the Persian Gulf back to Buenos Aires. This will be a...showcase."

Chen Feng immediately understood. The arms race between Argentina and Chile had reached a fever pitch; whoever acquired new warships first would be able to demonstrate their strength to their people and gain an advantage at the negotiating table.

"Okay," Chen Feng nodded, "but the training time will be compressed to two months. Moreover, I need to remind you that even the best crew members need at least six months of combat training to fully master such a new type of warship. Two months of training can only guarantee basic navigation and combat operations."

"That's enough," Luhan said. "As long as it can sail back to Argentina, fire a few shots off the coast, and let the Chileans in Santiago hear the gunfire, that's enough."

The words were blunt, and everyone in the meeting room laughed. Even the usually serious Tirpitz showed a hint of understanding – competition between nations can sometimes be this direct.

"There's one more question," Luhan added, "This ship...can you guarantee that its design blueprints won't be leaked to Chile?"

"In the name of the Lanfang revival cause, I solemnly guarantee," Chen Feng said, "that we have had no contact with Chile, nor will we in the future. Moreover, Argentina is purchasing active-duty warships, and we will ensure that all technical data is exclusively provided to your country."

"Thank you." Luhan extended his hand. "Then, £280 million, to be paid within a month. Training fees are separate?"

"The training fee is included in the total price." Chen Feng was generous this time, "consider it a discount for the first customer who pays in full in cash."

"make a deal."

That evening, three draft contracts were initially prepared.

Germany: Six Dreadnought-class battleships, total price £1680 million. 50% down payment, balance to be paid in installments over three years at 5% annual interest. Training fees are separate.

Austro-Hungarian Empire: Three ships, total price £840 million. Two were paid for with goods (valued at £288 million), one was paid in cash (£280 million), and the remaining £272 million was to be paid in installments over two years at an annual interest rate of 4%.

Argentina: One ship, £280 million in cash, to be delivered within one month.

Three contracts, totaling £2800 million. In 1905, this was a huge sum of money that could shake the economies of small and medium-sized countries.