Chapter 20: Operation Liu

Saoye, encountering a bailiff who refused money for the first time, was so surprised he even forgot to call for the sedan chair bearers to lift the chair. Secretary Han quickly gave the order, and the party set off again.

The sedan chair entered the city. There were no traces of the Australians in the county town itself, but upon closer inspection, one could see their handiwork: for example, the newly paved, flat main street, and the drainage ditches still being dug on both sides.

What surprised Li Luoyou more was the cleanliness of the streets here. Not only were there no puddles or ponds of stagnant water, but there was also no litter strewn about, and even the ubiquitous traces of urine and feces at the corners of walls were gone—these were common sights even in Guangzhou city, let alone a remote small county like Lin’gao.

There were very few shops along the street, just a few grocery stores and teahouses. The shops were small, but their storefronts were neat and clean. Li Luoyou could see that these houses had all been recently repaired; the walls had not only been painted but also had their bricks and tiles patched.

The county town seemed deserted, but the atmosphere was calm and peaceful. Li Luoyou wondered to himself: how did the county magistrate of Lin’gao get along with the Australians? Could he really be hiding in the county yamen, feigning ignorance? His self-control was truly admirable!

The county town of Lin’gao was small. After walking no more than two or three hundred paces, the sedan chair turned into a side street and arrived at the storefront of Runshitang. The sedan chair did not enter through the main gate but went around the corner and was carried in through a side door, directly to the second hall of the residence. A manager with servants was already there to welcome them.

The carrying poles were removed, and the armrest board was taken away. Saoye quickly took a few steps forward and lifted the sedan chair curtain.

“Greetings to the Master,” the welcoming steward and his servants immediately kowtowed.

Li Luoyou saw that Runshitang was quite large and that the servants acted with the demeanor of a great household, which put him at ease. The lack of respect for hierarchy among the Australians was something he found very annoying.

Li Luoyou’s arrival had already been reported to the Executive Committee by Liu San. The basic information about this merchant had been entered into the intelligence department’s files ever since Liu San’s trip to Foshan. Subsequently, his file level was raised due to his large-scale purchases of pig iron in Guangdong. However, Li Luoyou’s file was still quite simple. The transmigrator group had no other intelligence sources on the mainland besides the Guangzhou and Leizhou stations.

After the establishment of the Foreign Intelligence Bureau, a supplementary investigation was conducted on the files of important native figures established during the time of the Intelligence Committee, and Li Luoyou was among them. The Guangzhou station collected a great deal of information about him from various public channels, and gradually, a clearer picture of this figure emerged.

The Foreign Intelligence Bureau did not know the extent of Li Luoyou’s relationship with the Later Jin, but they knew at least that he had trade relations with the areas controlled by the Later Jin, and that this relationship was not shallow.

“Gentlemen, please consider what this Li Luoyou is selling,” Yu E’shui said. “It’s Liaodong goods, and especially ginseng. A person who can trade in ginseng is definitely someone who has a say in the Later Jin regime.”

Since Nurhaci’s rise, the Later Jin had placed great importance on the medicinal herb ginseng. They had even established the position of “Wolhuoda Zhangjing” to specifically manage the collection, storage, and sale of ginseng—this was their main export product for purchasing various goods from within the pass, and its importance was no less than that of oil to the Gulf countries.

For Li Luoyou to be able to transport and sell ginseng, he not only needed certain connections in the Later Jin but also had to have colluded with the local military commanders in the various border towns of Liaodong. Otherwise, with the court’s ban on trade with Liaodong, it would be impossible for him to transport goods back and forth over a thousand li.

In other words, if they could gain Li Luoyou’s cooperation, it would be equivalent to opening up a communication line from Hainan to Liaodong. Trade and intelligence networks could be established from there.

And Li Luoyou was not just an adventurous merchant who traded with Liaodong; he also had many commercial networks within the pass. The transmigrator group could very well use his connections to expand their intelligence and commercial networks.

In the past, the transmigrator group had not expanded its network on the mainland. The shortage of manpower was one aspect, but the lack of local contacts and unfamiliarity with the area were also problems. The local society of ancient times was quite closed. It was very difficult for an outsider to open up a situation in a certain place without the introduction and protection of local connections. Although Gao Ju’s influence was great, outside of Guangdong, he could only get by in the capital. His influence was negligible elsewhere.

They were not in a hurry to go to the capital, but Jiangnan was a region that the transmigrator group was eager to infiltrate. In the future layout of the transmigrator group, Jiangnan would be their main market for selling goods and purchasing materials.

In particular, the rice, cloth, and silk of Jiangnan were all trade goods coveted by the transmigrator group, and the prosperous commerce there provided the best market for the transmigrator group’s financial industry.

Thus, while Li Luoyou was still waiting in Foshan to set off, the various departments in Lin’gao were already in motion for him.

Although they were not yet clear about Li Luoyou’s intentions, it was clear that his purpose in coming to Lin’gao was to do business. And the most likely business to be done was weapons and ammunition.

The Foreign Intelligence Bureau had already learned that Li Luoyou was lobbying the governor-general and governor’s yamen in Guangdong, hoping to cast cannons for the government. His coming to Lin’gao was very likely for a similar purpose, as the transmigrators were known for their “sharp firearms.”

However, the transmigrator group was not keen on exporting weapons. Although the arms trade was the most profitable, it consumed the transmigrator group’s “strategic materials”: metal and coal. To export large quantities when the reserves of both were not abundant was difficult to accept.

As for the technological gap and the possibility of the weapons being copied by the Ming or the Later Jin, the industrial department believed there was no need to worry too much. Given the level of the weapons made in Lin’gao, it was almost impossible to copy them by purely manual means. At most, they could copy the appearance and structure, but the difference in material properties and processing level would be enough to degrade the performance of the copies to a very low level.

In the end, it was decided not to mention weapons for the time being, but to try to sell him other industrial products. Through his channels, they could be distributed to all parts of the country and Liaodong. Li Luoyou would hardly refuse a profitable business. In particular, the transmigrator group also hoped to use his commercial network to promote its financial products: Delong Bank’s drafts, to all major cities, and to wait for the opportune moment to export the transmigrator group’s currency.

All of this depended on Li Luoyou’s impression of the transmigrator group. To this end, a special working group was set up to handle him, temporarily composed of personnel drawn from the intelligence, political security, trade, and administrative departments. The work concerning Li Luoyou was codenamed “Operation Liu.”

Liu San was chosen as the person in charge of “Operation Liu.” Li Luoyou had come to Lin’gao through the line of Yangrun Kaitang and Runshitang. Liu San was both an elder and a shareholder of Runshitang, as well as Yang Shixiang’s sworn brother. He had also met Li Luoyou once before. Whether from a logical or emotional standpoint, he was the most suitable and convenient person to make contact.

Liu San received all the intelligence on Li Luoyou. To avoid making his sworn brother too nervous, the matter of “Operation Liu” was not revealed to him. Liu San thought it was best to make contact as naturally as possible, preferably with the other party speaking first, so that he could gain a certain initiative in the negotiations.

Yang Shixiang was already waiting at the eaves of the flower hall. After they met, there was naturally a round of courtesies, with a few polite words like “long admired” and “heard of your fame.” Li Luoyou couldn’t help but compliment him a few times on “reviving the family business.” This was Yang Shixiang’s proudest achievement, and being complimented on it was like having an itch scratched. He had been curious about this merchant introduced by his cousin. In his letter, his cousin had only said that the visitor was very curious about the “Australians” and hoped to visit Lin’gao to see for himself, and by the way, to see if there was any possibility of doing business with the Australians.

Although his cousin’s letter was vague, Yang Shixiang knew that a man like his cousin would not write to him specifically for an ordinary merchant. This person must be very important, perhaps even a government official.

Yang Shixiang saw that this man was about forty years old, of medium height, with a long face and a short beard, and had the air of a wealthy merchant. Upon closer inspection, his eyes were quite sharp, a man who had seen the world.

However, at first sight, he felt a sense of familiarity, as if he had seen him somewhere before. He couldn’t help but feel a little puzzled. Seeing that the servants had already served tea, he asked, “Is the guest room for Master You ready?”

“It’s ready. Master You will be staying in the east guest courtyard,” the steward quickly replied. “How should we arrange for that red-haired master? Please give your instructions, Master.”

“Please have him rest in the east guest courtyard for now,” Yang Shixiang said. He had already known from the letter that a red-haired merchant would be coming.

The east guest courtyard was a recent extension of Runshitang. Since Runshitang had prospered, the number of visiting merchants and colleagues had increased daily. The original guest courtyard was no longer sufficient, so this new one was built specifically for receiving distinguished guests. It had five bays with front and rear wings, enough to accommodate Li Luoyou’s party. All furnishings were provided.

Li Luoyou’s luggage was counted piece by piece by Saoye and sent to the guest courtyard, where someone would arrange it. Li Luoyou also brought four kinds of local specialties from Foshan as a meeting gift.

The gift was not too heavy, to show it was a friendly exchange, but it was not light either, as he was a stranger in a strange land and would have to rely on the other party for everything.

“Master You’s gift is too generous,” Yang Shixiang said, a little uneasy. Given their relationship, this gift was indeed a bit too generous.

“It’s nothing. I will have to trouble Shopkeeper Yang for your care,” Li Luoyou said. Seeing that the irrelevant people in the flower hall had withdrawn one by one, leaving only himself and the other party’s personal servants, he finally spoke.

“My surname is not You.” In fact, he had met this shopkeeper and Liu San before—although it was a brief encounter at the time, there was no need to keep his true identity from them. “My humble surname is Li. The Liaohai Trading Company in Guangzhou is my humble business.”

“So it is the great Shopkeeper Li! My apologies! My apologies!” Yang Shixiang was greatly surprised. He remembered everything at once. Wasn’t this great Shopkeeper Li the great merchant he had met at his cousin’s banquet when he and his sworn brother went to Foshan?

He hadn’t paid much attention to this great merchant’s background before, but as Runshitang’s status in the Guangdong pharmaceutical industry grew, he had come to know a little about this influential Shopkeeper Li. This man was a legendary figure in the Guangdong business world. In his youth, he had been an errand boy for the Portuguese in Macau and had learned to speak fluent Portuguese. He later went to Liaodong to manage his family’s business. When Guangning was evacuated, he fled from Guangning, enduring hardships and nearly losing his life. The Li family’s century-old business in Liaodong was destroyed in a single day. He returned to within the pass and, relying on a small property left in the capital, went down to Guangdong to engage in foreign trade. In less than ten years, his family’s fortunes were restored, and he became a famous great merchant in Guangdong.

It was an open secret in the Guangdong business world that Li Luoyou traded in Liaodong goods, and the official circles would naturally not be unaware of it. If he only had money and no background or means, it would be impossible for him to live comfortably as a wealthy merchant.

“I have come this time with a few matters to request,” Li Luoyou said, getting straight to the point, without hiding his intentions.

“Of course, of course,” Yang Shixiang nodded gravely. This great Shopkeeper Li of the Guangdong business world had come here under an alias. It must be for an important matter. And this matter most likely involved the Australians. In that case, he had to be cautious.

Amidst his caution, he couldn’t help but feel a little proud. He had originally been guarding this small, half-dead pharmacy. How could he have had the honor of a visit from a great figure like Li Luoyou!

But for this person to suddenly come to Lin’gao alone to visit him, the matter he wanted to discuss must also be of great importance.

“I would like to meet with the Australians, and I would like to trouble Shopkeeper Yang to act as a go-between.”

Yang Shixiang was very hesitant. This was not outside his expectations, but there were at least five hundred, if not a thousand, Australians in Lin’gao. Who exactly did he want to meet? If he wanted to meet the big bosses, like “President Wen” or “Duke Ma,” it was uncertain whether his sworn brother’s words would even be effective.

“I will do my best,” Yang Shixiang nodded. He decided not to reveal Liu San’s true identity for the time being. He would discuss it with Liu San first before making a decision.

That evening, he had someone summon Liu San and relayed Li Luoyou’s request.

“Your humble brother did not dare to promise him first, nor did I say you were an Australian. This matter is of great importance and must be handled with caution,” he specifically reminded Liu San. Li Luoyou was very likely sent by the government to probe the situation in Lin’gao. He might also be representing the government to negotiate something.

“At that banquet in Foshan where we first met Li Luoyou, there were officials present.”

Of course, Liu San knew about this. Not only did he know, but he also knew that this official was a probationary centurion of the Jinyiwei. But there was no need to tell his sworn brother this. It would only frighten him.

“Big brother’s advice is well-taken,” Liu San said. “Since he wants to see us, you can promise him.”

“Your humble brother does not know the hierarchy among you Australians. I don’t know what kind of person this Master Li wants to see. What if he wants to see your big boss?”

“I will handle this matter,” Liu San said. “If he wants to see President Wen, I will relay the message. Whether he gets to see him is another matter.”

“Good,” Yang Shixiang nodded, then added, “Worthy brother, you should still inform your people to come up with a plan.” Yang Shixiang warned him, “You are building fortifications and training troops here. The court will sooner or later take action. If a large army arrives, it will inevitably lead to devastation. You should make plans early.”

Liu San was not concerned. He just told him to entertain this distinguished guest well. As for himself, he would be staying at Runshitang frequently recently. For the convenience of his work, he hoped Yang Shixiang would provide him with a courtyard that was easy to access and inconspicuous.