Chapter 768 – Conditions

Li Luoyou's business network and economic strength far exceeded that of the scattered petty merchants, and his channels ran deeper than those of Gao Ju, who relied mainly on trafficking foreign goods. Not only was his supply volume larger, but he also commanded significant price advantages. Consequently, Qionghai House had swiftly become the largest mainland supplier within the Lingao commercial system. Gu Baocheng's role was largely that of a money handler. Still, Li Luoyou granted him considerable autonomy in purchasing. Of Qionghai House's monthly procurement budget in Lingao, Gu Baocheng could decide half of it himself, choosing goods he believed would turn a profit on the mainland.

The encirclement campaign launched by the Guangdong authorities had interrupted Qionghai House's operations for a time. But not long after the Great Victory at Chengmai, Gu Baocheng—who had remained in Lingao throughout—quickly resumed bilateral trade and turned a tidy profit. This gave Li Luoyou some confidence in his nephew's managerial abilities.

Li Luoyou placed great importance on Qionghai House's development. The funds to establish it had come from his "private purse." Though his family possessed immense wealth, those were Li clan assets, and Gu Baocheng was, after all, an outsider. To avoid clan gossip and to provide his nephew with security should anything happen to himself, Li Luoyou needed to give Gu Baocheng a foundation of his own. The clan eyed his existing assets—whether business operations or investment shares—with predatory hunger. Even his own son might not inherit everything intact, let alone a nephew.

Now the Australians had fully demonstrated their capability and their resolve to defend themselves. From this perspective, present-day Lingao—and the future Qiongzhou Prefecture—could serve as a viable refuge. Li Luoyou had grown increasingly pessimistic about conditions in the Central Plains and the Great Ming's future. The shadow of approaching chaos weighed heavily on him.

His trip to Lingao this time served dual purposes: to carry out Li Fengjie's negotiation mission and to put Qionghai House in order. If the world descended into chaos, this southern island might prove a sanctuary.

The carriage arrived at the entrance of Qionghai House. Two servants hurried out to take the horses. Because of the steps, the carriage had to stop outside the gate—unlike a sedan chair, it could not be carried into the courtyard. Li Luoyou made a mental note: Remind Baocheng to renovate the entrance so carriages can enter.

He had already instructed Gu Baocheng to purchase a carriage from the Australians for his own use. As for horses or mules, he would send them from the mainland.

"Nephew, using such a vehicle... isn't it too ostentatious?" Gu Baocheng had been startled by the order. The "Red Flag" carriages were rarely seen on Lingao's streets; even the Australian elders seldom used them. They didn't ride carriages or sedan chairs—they either walked or rode "iron-wheelers." For a mere shop manager to parade around in one seemed inappropriate.

"It matters not," Li Luoyou said. "You are the manager of Qionghai House now. You must maintain the necessary appearance."

Qionghai House stood relatively far from the center of East Gate Market—in modern terms, on the outer ring. They had chosen the location for its cheap land and ample room for expansion. Moreover, since the firm focused on wholesale trade, a prime storefront was unnecessary.

Though the location was somewhat remote and the frontage modest, the compound's renovation was extremely fastidious. It followed the traditional Yingzao Fashi—the Building Standards—while incorporating many Australian comforts: glass windows, bathrooms with hot and cold water, and flush toilets. Li Luoyou particularly admired Australian sanitary equipment. In traditional residences, no matter how luxurious, the latrine remained a place one dreaded entering. No amount of expensive incense could fully mask that lingering stench.

A small garden had been built within the compound—a "modern-style" classical garden designed by Li Xiaolü. It suited Li Luoyou's taste perfectly. After changing clothes, the two men sat in the garden's waterside pavilion to talk.

Li Luoyou had already reviewed the account books Gu Baocheng had given him. The ledgers showed a large surplus of circulation notes, currently deposited in Delong Bank. Gu Baocheng proposed reducing exports to Lingao and increasing imports from Lingao, thereby spending down the bank deposits quickly.

He remained deeply skeptical of paper currency's creditworthiness. No matter what anyone said, it wasn't gold or silver. Even copper coins felt more substantial.

Li Luoyou listened to his nephew's thoughts and pondered for a long while.

"There is no rush to spend this surplus," he finally said. "You must have a plan. Qionghai House will be your property in the future—this is your domain. Think more carefully about how to invest this money locally."

Gu Baocheng could not imagine how to spend the money beyond increasing stock. The Qionghai House premises were spacious enough, and he felt the land he had already accumulated was sufficient. Large tracts of wasteland he had purchased around the compound were now growing vegetables. Though vegetables sold easily in Lingao, they weren't worth much. Spending huge sums on land just to let it bask in the sun seemed wasteful.

"It is not wasteful," Li Luoyou smiled. "Has the value of the land you bought not risen?" He leaned forward slightly. "The Australians are just beginning to exert their strength in Lingao. Land prices will only rise—never fall."

He instructed Gu Baocheng to keep a portion of the circulation notes from sales on hand rather than converting everything into goods for the mainland. A share of the retained cash should continue to be used to buy land. Land prices in Lingao were rising faster than anywhere else in the Australian-controlled zone, especially near East Gate Market. This castle town, originally intended for trade with natives outside Bairen City, was expanding so rapidly it threatened to swallow Bairen City itself. Many elders had already grown tired of living inside Bairen City—too crowded and periodically plagued by industrial exhaust and noise.

"Uncle, though the price is rising, we cannot sell immediately," Gu Baocheng said. "It's a market with prices but no buyers..."

"Naturally. Vacant land still exists in the inner ring of East Gate Market, so land out here is hard to move. But when the inner ring fills up? If you buy abundantly, land will grow scarce. When demand exceeds supply, people will come to buy your land."

"Uncle teaches wisdom," Gu Baocheng said quickly.

As for the remaining money, it was to be saved for now, awaiting the right opportunity—though exactly how to deploy it, Li Luoyou had not yet decided.

"In addition, do more charity," Li Luoyou continued. "Donate to the church—the Lingao parish is young. Though it has Jesuit support, it lacks roots and property. Father Wu runs a seminary and charities; his expenses must be considerable."

"Yes. Nephew donates a sum to the church every month..."

"And the various benevolent societies run by the Australians—and their schools—you must donate to them as well. The amounts need not be large, but you must give to all of them. Miss none."

"Nephew understands."

Li Luoyou nodded. "It is easy to make money in Lingao. Therefore, one must cultivate good karma broadly to live here long and peacefully."

As they spoke, word came that Australians had arrived to visit. Li Luoyou's spirits lifted: presumably the Senate had finally reached a conclusion regarding the negotiations. He had been in Lingao for over ten days, waiting for a formal audience to begin talks.

"Quickly—invite them in!" he ordered. "Serve tea in the main hall!"

As the servant turned to go, he added, "Who has come?"

"Among them is Elder Liu. I do not recognize the others."

Elder Liu was Liu San. Liu San obviously had not come to negotiate—he was there to make the atmosphere more relaxed as a familiar face.

The person in charge of negotiations was Xu Tianqi of the Ministry of Foreign Affairs. The transmigrators' interests in Guangdong had already been specified in the Treaty of Macau; this negotiation was merely follow-up work. Xu Tianqi's task was simply to inform Li Luoyou of the conditions discussed by the Senate and the Ministry.

Xu Tianqi was an acquaintance of Li Luoyou's—back when they were first received, Xu Tianqi had been primarily responsible for negotiating with Kwak Chung.

After the exchange of pleasantries, servants served tea. Xu Tianqi glanced around and decided the main hall was too open for confidential discussion.

Seeing him look about, Li Luoyou knew he likely carried the negotiation terms and needed somewhere private. He immediately ordered the group led to his study—the deepest courtyard of Qionghai House, off-limits to ordinary servants and clerks except for Gu Baocheng.

The conditions Xu Tianqi presented on behalf of the House of Elders were as follows:

The Guangdong authorities would tacitly consent to the Transmigrator Group occupying the entire Qiongzhou Prefecture and exercising control. In return:

First, the House of Elders guaranteed that the Great Ming's personnel appointments for Qiongzhou Prefecture and its subordinate counties could continue—in other words, the Great Ming could still appoint and remove officials in Qiongzhou as normal. At the same time, the House of Elders guaranteed the personal safety and property of these officials and their families.

Second, the House of Elders guaranteed full payment of the official tax quota for the entire Prefecture—including the surcharges and additional levies from the Ministry of Revenue. However, provincial surcharges would not be paid.

Third, Ming garrisons in Qiongzhou could remain, provided their presence was benign. The House of Elders guaranteed the personal safety and property of the Baisha Water Fortress, the Haikou Battalion, and Tang Yunwen himself together with his subordinates.

Fourth, starting from the date the treaty was signed, the Australian-Song Navy would repatriate all civil and military officials and soldiers trapped in Qiongshan County to the mainland in batches. The drop-off point would be designated by Guangdong. Officers and soldiers of the Baisha Water Fortress, Haikou, and other local Qiongzhou garrisons would return to their respective units; the Fubo Army would not impede them.

Fifth, repatriated personnel could carry weapons, baggage, banners, and ten days' rations. They were not permitted to carry gunpowder, cannons, livestock, or fodder. Officers of guerrilla rank and above could bring their own horses. Everyone—officer or soldier—could bring their private property, limited to ten kilograms. Abandoned government vessels belonging to the Baisha Water Fortress would be returned; all other vessels would be confiscated.

(End of Chapter)