1905: Beer Hall Speaker

Page 133

Wang Dingyun also called on his junior brother Zhang Xinghua, asking him to contact the southern provinces of Hunan, Guangxi, and Guizhou. They had recruited many bandits and were having a lot of trouble with them, so they could send them to Xinjiang. They could take as many as they wanted.

Finally, I wrote to my mentor, Zhao Yan, asking for his help to send a strategic development working group to Xinjiang as well. We've sent them to the Northeast before, so we need one for Xinjiang too.

Chapter 221 It's that time of year again to pay off debts.

December 1910, Beijing.

Inside the Ministry of National Defense, Wang Chongshan was meeting with Mr. Yuan Shikai, a nationally renowned tomb raider, accompanied by Major Sun Dianying, an outstanding officer from the military archaeology team.

For their contributions to archaeology, the two were awarded the annual "Outstanding Archaeological Officer" honor and were also personally summoned by General Wang Chongshan, the Minister of National Defense.

"Old Yuan, you've done a great job. The Führer is aware of your hard work and achievements." Wang Chongshan sat in a chair, while Yuan Shikai and Sun Dianying sat against the wall.

"Minister, you flatter me. These are just minor achievements. I am content to have contributed to the country and dare not take credit for them!" Yuan Shikai sat in a relatively relaxed posture, leaning back in his chair and sitting with his buttocks fully on the chair. After all, he was a major general and had made some contributions, so there was no need for him to be overly modest.

Sun Dianying, on the other hand, simply placed his hands on his knees, only daring to sit on one-third of his buttocks, sitting there with his back ramrod straight, and dared not utter a word.

"No need to be modest. The higher-ups are very satisfied with your achievements. In the past three years, your archaeological work has contributed more than 40 million yuan to the treasury, which is quite remarkable."

"Therefore, the higher-ups have decided to reward you handsomely. The Führer said that glory should never be enjoyed alone, and what is rightfully yours will certainly not escape you."

Wang Chongshan turned his head to look at Sun Dianying and said, "Major Sun, right?"

Sun Dianying immediately stood up and saluted: "Yes, Minister!"

Wang Chongshan nodded and said, "Congratulations, Major Sun. The Ministry of National Defense has decided to recommend you to participate in the annual overseas student program. You will report to the Nanjing Comprehensive National Defense University next year, where you will first study the basics for two years before going to Germany for further studies."

"After the students return, I'll specifically arrange a key battalion commander position for you. Do a good job and don't let me down!"

Sun Dianying was brimming with passion: "Yes, Minister! I will absolutely not let you down!"

Studying at the National Defense University in Nanjing and being recommended for overseas study was a reward for Sun Dianying's archaeological achievements. If he returned after completing his studies, his future would be limitless, if not limitless.

"Go back and make preparations. The notification could be issued at any time."

"Yes, Minister!"

Sun Dianying got what he wanted and left Wang Chongshan's office satisfied, while Yuan Shikai looked at Wang Chongshan with burning eyes.

He can't be dismissed with just a military academy degree. Old Yuan has even abandoned all shame, doing so many despicable things, and has fully pledged his loyalty, hoping for this last wave of gains.

Yuan Shikai now has little hope of remaining on the front lines of the military; he must retire completely, otherwise his old subordinates from the Beiyang clique will never be promoted.

Only when Yuan Shikai completely withdrew from the military will the Beiyang Army become history, and only then will the officers who came from the Beiyang Army be able to obtain equal opportunities for promotion.

"Old Yuan, the Ministry of National Defense and the Supreme Governing Council have approved your promotion order, deciding to promote you to Lieutenant General. However, considering your advanced age and poor health, we have specially approved your retirement after the promotion."

Wang Chongshan revealed the high-level arrangements for Yuan Shikai. After hearing this, Yuan Shikai looked as if he had expected it. For a former general like him, who had even once ambitiously challenged Zhao Yan, to survive was a testament to Zhao Yan's magnanimity.

Being able to retire as a lieutenant general is already a pleasant surprise, and I have nothing to complain about.

"Old Yuan, I heard you spent some time in North Korea, right?"

"Yes, Minister. I spent some time there this morning and went with the head of state, so I'm quite familiar with the area."

"It's good that you're familiar with North Korea. I wonder if the Yuan family would be willing to continue contributing to North Korea after you retire?"

"Of course the Yuan family is willing!"

"very good!"

Wang Chongshan didn't mince words; he directly stated that the central government might arrange for Yuan Shikai to retire and serve as the vice governor of Korea Province, with the Yuan family also having to go with him.

Du Qingwu was determined to permanently govern Korea. Although the central government tacitly approved, there could not be no checks and balances. The central government sent the Yuan family there to support a new force, to fight a "pengpenghu" (a type of gambling game) in Korea, without pursuing a "qingyise" (another type of gambling game). This was the central government's intention.

Yuan Shikai had no reason to refuse and readily agreed. He then left the Ministry of National Defense satisfied, awaiting the subsequent promotion and retirement procedures.

Wang Chongshan tallied the findings of the military archaeological team this year, and as usual, kept 30% for himself, handing over the remaining 70% to the Ministry of Finance.

After the military archaeological team finished its work at the end of this year, it was also disbanded. All the tombs of the Manchu imperial family, whether they were those of emperors, princes, empresses, or empress dowagers, have been excavated.

Although reluctant, it was inappropriate to continue digging, unless we continued to excavate the tombs of Han emperors, but that would be too outrageous, so we had to give up the idea.

The Republic's finances have recovered from the post-war crisis and are gradually normalizing, so there is no need for such despicable means to continue accumulating wealth.

Wang Chongshan finally signed his name at the end of the archaeological work summary report, then stamped and sealed it, thus bringing the matter to a close.

After receiving the annual transfer from the military, the Ministry of Finance scraped together more than 70 million in hard currency and began the repayment of principal and interest on its debts for the year.

Domestic debt can be repaid with cash, but international government debt must be repaid with real hard currency or foreign exchange.

What you borrow, you must repay. If you borrow US dollars, pounds, or francs, you must repay them in the same way. If you don't have enough foreign exchange, you must repay with gold or silver.

In the most dire situation, the Ministry of Finance directly used cultural relics, antiques, minerals, and timber to offset debts with international creditors. After the fiscal situation improved this year, we finally don't have to do those messy operations anymore; all the repayments are now made with foreign exchange and precious metals.

After this year's debt is paid off, the Ministry of Finance will only owe long-term international loans. The five-year war debt has been completely repaid. With such a large deficit gone, the fiscal situation next year should be much easier.

After those international debtors received full repayment of war bonds, China's national credit rating improved significantly.

These days, there aren't many countries that keep their promises, repay their debts, or default on them. They are extremely rare. In the past, only countries like the UK, the US, and the Netherlands had established a solid international reputation.

There's no need to say much about the British. During the anti-French coalition, the British were no match for the French in terms of national strength or resource mobilization capabilities, but they were the victors in the end, simply because the British were able to borrow money.

The British have a stable parliament and political system, and the Royal Navy to defend their homeland. No one is worried about the collapse of Britain, so they dare to lend money with peace of mind.

The Dutch were among the founders of European finance. When they were wealthy, they possessed vast resources and a long history, and their credit was excellent whether they were borrowing money from others or lending money to others.

While the United States may not have a great reputation in other areas, it has never defaulted on its debts. From its founding to the present, every single debt has been repaid on schedule.

Now China has been added to the list of countries with high creditworthiness. Since the late Qing Dynasty, the Chinese people have been models of fulfilling treaty obligations. Although the Qing Dynasty fulfilled unequal treaties, it at least maintained basic credibility.

After the establishment of the republic, Zhao Yan also attached great importance to the country's credibility and strictly enforced the protection of the legitimate property of foreigners in China.

The unequal indemnities and territorial concessions abolished by Zhao Yan were not considered breaches of contract by any of the countries, because they were originally seized by force, and the countries ultimately took them back by their own strength, which was entirely in accordance with morality.

The Republic acknowledges all loans that are legally and legitimately obtained and repays them as agreed. Even if it is unable to repay, it will grit its teeth and go bankrupt to do so.

Even if it is an enemy country, or even during wartime, when it is time to repay the money, the Republic will never default on its debts.

It seemed like a huge loss, but now it has yielded enormous gains.

Internationally, the interest rates on newly issued Chinese government bonds have fallen to around 1.3% to 2.5%, a drop of more than half compared to the previous rates that often started at 5%. This reflects international recognition of the safety and stability of Chinese government bonds; with lower risk, interest rates naturally decrease.

Foreign banks have also lowered their loan interest rates for China from over 7% per annum to around 4%.

A large number of foreign investors began to pour into China to invest and build factories, becoming an extremely important capital force in the First Five-Year Plan of the People's Republic of China. A large amount of advanced technology and equipment were also brought in by foreign capital.

Previously, countries like Britain, France, and the United States wanted to impose some blockades, but seeing Germany going all in on various high-end technologies, importing them into China, and continuously reaping huge profits in the Chinese market, other countries were also extremely envious and abandoned the blockades, retaining only the most core technologies while opening up everything else.

In early 1910, the first International Summit on Human Rights and Freedom was held in Paris, France, and foreign ministers from various countries attended the meeting.

The conference expanded the Geneva Conventions and added many new provisions, and many major countries, including China, signed and joined the convention system.

Subsequently, at the initiative of Chinese Foreign Minister Gao Dewu, the International Security Council, or League of Nations for short, was established, and countries readily participated and became members of the League of Nations.

The League of Nations was headquartered in Paris, and its first plenary meeting of member states discussed international human rights and freedoms, as well as the security of international trade and investment.

The first issue discussed was the designation of Japan as an extremist terrorist regime. The League of Nations, with an overwhelming majority and a minority of votes against, approved the designation of Japan as an extremist terrorist regime.

However, the resolution to impose a blockade on Japan was not passed, mainly due to strong opposition from the UK and the US, who argued that it violated free trade principles.

China did not react much to this, as it had already anticipated that the West would not abandon its policy of balancing Asia, especially given China's obvious rise and Japan's already weak position; they were even less likely to give up their support.

It was only because of China's unilateral blockade that Japan's southward trade routes were almost paralyzed.

At the end of the summit, Chinese Foreign Minister Gao Dewu reiterated in Paris the Republic's government's policy of absolute protection of foreign investment and legitimate property in China, promising that foreign investment and property in China will not be affected by war or hostile stances, and that the Republic's government always recognizes the inviolability of legitimate property.

This round of public endorsement, coupled with the timely repayment of debts at the end of the year, has at least established the Republic's international credibility, regardless of its international standing.

In the second half of 1910, foreign capital flowing into the Chinese market reached 370 million Han Yuan, and the total foreign capital absorbed throughout the year reached 550 million Han Yuan. It is expected that another wave of growth will be ushered in the following year.

The government has made its intentions clear: regardless of your country, region, or even colony, as long as you bring your money and invest it in the Chinese market...

The Republic will then provide equal protection and recognition, and even if the two sides are enemies and war breaks out, the Republic promises not to engage in any acts of embezzlement against legitimate enemy assets within China.

The Republic government had done this during the previous Far East War, when both sides were exhausted, but the Republic still did not take action against Britain's legitimate assets in China.

Now that things are going even better, international capital's willingness to invest in the Chinese market has increased even more.

Even within Japan, considerable capital has entered the Republic's territory under the guise of British investment, and Jewish financial groups from Europe and America have also begun to invest heavily in the Chinese market.

The top leadership of the Republic retained only the last state-owned enterprises as the ballast in the core sectors, while opening up all market sectors.

Domestic capital is very unhappy, but it can only endure it. Relying solely on domestic capital is far from enough to meet the needs of 400 million people and tens of millions of square kilometers of land. For such a huge market, relying solely on domestic capital and fiscal investment for construction is simply too slow.

Zhao Yan wants to attract global capital to participate in China's development and construction. As long as the domestic economy and people's livelihood are developing, employment is guaranteed, and national income is increasing, everything else is secondary.

Currently, the prevailing international opinion is conservative, and countries have serious trade barriers, all wanting to retain their own core territory while encroaching on others'.

But China completely opened itself up in exchange for the world to open up to it in return, offering its market of 400 million people in exchange for the global market of over a billion people.

More importantly, it can attract global capital. A hundred years from now, which country wouldn't want to bring capital from other countries into its territory? A large part of Wall Street in the United States is supported by capital from other countries around the world.

Zhao Yan now wants to make China a global hub for capital, but openness and promises alone are far from enough; it also needs the hard power of a world superpower.

Chapter 222 Summary of 1910

Inside the Imperial Study, Zhao Yan was currently working on an abacus, calculating accounts from reports. The floor below the kang (a heated brick bed) was filled with accountants from the audit department, all helping with the calculations.

Zhao Yan remained skeptical of the data reported by his subordinates, since the data reported at the end of this year was indeed somewhat exaggerated, even outrageous.

It's not acceptable. It's only been a few years since the founding of the country, and the people below are already so extravagant, playing the Great Leap Forward mode with Zhao Yan. Each province is making wild claims, and the audit department has even approved them and sent them to the imperial study.

According to rough statistics across the country in 1910, the Republic's annual gross national product reached 12.7 billion yuan, and its fiscal revenue reached 800 million yuan.

Grain production exceeded 77 million tons (cereals), steel production reached 3.2 million tons, and pig iron production exceeded 10 million tons.

Coal production reached 47 million tons, railway mileage exceeded 30,000 kilometers, and highway mileage reached 120,000 kilometers.

The total tonnage of ships manufactured was 187,000 tons, 140 vehicles were manufactured, and the annual output of petroleum was 210,000 tons and fertilizer was 11,000 tons.

Other commodities such as cotton, oil, sugar, paint, and raw silk have also increased exponentially.

When Zhao Yan first saw this data, his eyes almost popped out of their sockets. He simply couldn't believe it. How could there be such an outrageous growth rate?

"Your Majesty, we've done almost all the calculations. There are slight discrepancies, but not significant. We can basically confirm that the data is accurate."

"After cross-comparison, this is almost the same as what the inspection teams in various places reported."

The audit minister, sweating profusely, handed over the results after repeated confirmation.

Zhao Yan looked at the data in his hand. Reality told him that it was all true, but reason reminded him that he still had to have doubts.

Waving his hand, Zhao Yan scratched his thinning hair and said, "Really? Is our country developing that fast?"

The Auditor General nodded and said, "1910 was the year when we were shaking off the effects of the war, and various policies began to take effect, marking a year of accumulating strength and finally unleashing its potential."

"Before this, the central government gritted its teeth and invested huge amounts of resources and finances, almost to the point of overspending to pursue development and growth."

"If this still doesn't work, I'll start to suspect that everyone under me is a corrupt official and a bunch of good-for-nothings."

"With 420 million people working hard to create value, this result and data are not surprising. On average, each person creates about 40 yuan of labor productivity, which is consistent with the hardworking nature of our people."

The whole country is under your watchful eye, Zhao Yan, working like crazy. Moreover, taxes and levies are light, and there are various policies and orders to urge people to work hard. Chinese people are not lazy to begin with. Now that they have the opportunity to work and create their own wealth, who isn't working their hardest?

The audit minister felt there was nothing to question. At most, the subordinates would only slightly overstate the data by two or three percent. They wouldn't dare to overstate it themselves.

Ultimately, all the data must be reflected in specific fiscal revenue. If the GDP and fiscal revenue don't match, it will cause even more problems.

Zhao Yan asked in confusion, "But why do I still feel like I'm living in such poverty?"

The Auditor General replied, “Your Majesty, you are exempting taxes everywhere. Farmers with less than ten mu of land per capita are exempt from agricultural tax, and newly built factories in the industrial sector are subject to three reductions and two exemptions.”

There are other preferential policies as well. The GDP has gone up, but many taxes have been waived, so of course we're poor.

"Moreover, in the past few years we have carried out so much infrastructure construction, promoted education, worked desperately to pay off debts, and also had to support an army of 800,000. How can we not be poor?"

"Alright, since it's true, I won't hold it against you. Take your people to rest, and also ask Premier Zhang to come over!" Zhao Yan breathed a sigh of relief. As long as the data was true, there was no problem. It was definitely a good thing.

As long as the country is developing and the economy is growing, Zhao Yan can rest assured. No matter how much growth or how fast development occurs, as long as there is no regression, Zhao Yan is satisfied.

At least the country isn't collapsing under my leadership, but rather improving. Even if I'm overthrown in the future, I can at least rest easy, knowing that I won't be leaving a mess for future generations.

After a long while, Zhang Mingqi arrived at the Imperial Study and immediately complained, "What is it now? I'm so busy at the end of the year that I don't even have time to breathe. What's this all about?"

"Can't I talk to you about anything?" Zhao Yan brewed some hot tea and placed a cup on the table for each of them.

Zhang Mingqi was furious: "If you have something to say, say it now. If not, I'm leaving! There are dozens of provincial governors and other officials waiting for me in a meeting. I'm not in the mood to joke around with you!"

Zhao Yan smiled and said, "Have you seen all the year-end summary data submitted by the audit department?"

Zhang Mingqi nodded: "Of course I've seen it. Although the data is a bit outrageous, it's all true, which is a good thing. It proves that our new reform policies are correct and we haven't gone down the wrong path."

Zhao Yan agreed, saying, "I'm also much relieved. Before, I was worried that the more we messed things up, the more the country would regress. Now that I see the results, I can finally put my mind at ease."

"I called you here to discuss next year's plans. Let's get our heads together, have a small meeting to set the tone, and when the Supreme Executive Committee meets, we'll follow the tone we've set."

Hearing this, Zhang Mingqi finally sat down calmly. Big matters are discussed in small meetings, and small matters are discussed in large meetings. Many major policies are decided by a very small number of people, or even just one or two people.