Chapter 70: Return to Guangzhou
Wu De strongly opposed the Guangzhou Great World project at the Executive Committee meeting. Besides him, Cheng Dong was also against it. Their reasons were the same: the 1631 budget and resource allocation plan had already been finalized, and suddenly adding a large-scale project meant that all existing plans would have to be overturned. Cheng Dong’s opposition was particularly fierce; 1631 was the first year the Ministry of Finance had prepared a formal annual budget. In 1630, the second anti-encirclement campaign had caused economic turmoil, leading to a sharp decline in imports and exports and a series of problems like currency over-issuance. The Ministry of Finance’s policy for 1631 was “moderately tight.”
“We may have multiple unforeseen events in 1631 that will require additional budget allocations,” Cheng Dong pointed out. Analysis reports from the Foreign Intelligence Bureau, the General Military Staff, and the Planning Institute indicated that the Senate would likely face several major military operations in 1631. Highly probable events included military action on the southwestern frontier, a war against Liu Xiang, and a war against Zheng Zhilong. On Hainan Island itself, the pacification war in the north was nearing its end, and the next step was for the army to enter the southern region to begin military operations, which would also be a considerable expense. The current war budget was definitely insufficient.
“We haven’t specifically budgeted for a deficit, but it’s entirely conceivable that this year’s budget will run a deficit,” Cheng Dong warned. “This will have a significant impact on the stability of the circulation coupon’s value.”
The inflation of the circulation coupons was temporarily concealed—the transmigrators’ military victories had greatly expanded their territory, and the coupons were being promoted by the bayonet in the counties of northern Qiongshan. The social wealth of these counties absorbed the expanded purchasing power of the coupons, indirectly supporting their stability and preventing a collapse. The most critical period had been at the end of a 1630, when two-thirds of Lingao’s silver reserves were transferred to Leizhou to purchase sugar, putting the Ministry of Finance under immense pressure.
Si Kaide was extremely supportive of the project. “But once this project is launched, the returns will be substantial. Most importantly, we will break free from our current extreme dependence on Lingao’s industry. We can process raw materials, hire labor, and sell goods locally in Guangdong.”
“Since we were already planning to open light industrial enterprises in Hong Kong and Guangdong to utilize local manpower and resources, building a large-scale sales base for our goods can’t be considered a waste,” Zhan Wuya also expressed his approval from an industrial perspective.
“As for the financial and material resources needed for construction, I think we can find solutions locally in Guangzhou. We shouldn’t rely solely on full government funding,” Li Mei once again brought up her idea of joint-stock companies.
She proposed that the Guangzhou Great World, like the Da Bo Shipping Company, should absorb private capital. Li Mei suggested that state capital should hold 51%, leaving 49% for public subscription. Specifically, they could either directly attract funds from the local gentry and wealthy households in Guangzhou or use the Delong Bank’s Guangzhou branch as an institutional investor to absorb private funds. Whether to issue stocks or corporate bonds could be discussed separately.
Before the second anti-encirclement campaign, the Delong Guangzhou branch had absorbed a large amount of deposits through the Zi-brand enterprises and its own operations. A significant portion of these deposits was used as working capital for the Guangzhou Station’s trade and to support the development of the Leizhou sugar industry. Delong Guangzhou had established considerable credibility during its years of operation in the city, and with its current financial situation, investing in the Guangzhou Great World was entirely feasible.
As for the large amount of materials needed for construction, they could be purchased locally in Guangdong, including timber, bricks, tiles, and stone. They could even consider building a building materials factory in Guangzhou or Hong Kong, using Lingao’s advanced technology to manufacture construction materials. This way, even cement could be produced locally in Guangzhou.
Cement production was an industry that required a large amount of raw materials. Lingao’s cement industry relied on external transport for coal, which was not very economically advantageous. Although Guangzhou had no coal mines, there were many small and medium-sized coal pits in Guangdong at the time, making it easy to obtain cheap coal nearby. As for limestone, clay, and other materials, they were readily available near the Pearl River Delta, which was much better than Lingao’s cement factory, which often had to burn oyster shells for lime.
Ultimately, the proposal was also approved by the Executive Committee. It was decided to add the Guangzhou Great World project to the 1631 Planning Institute’s material production and allocation table and the fiscal budget as an additional project. Of course, a considerable portion of the funding would have to be raised by the project team itself.
“Master, we have arrived at the Tianzi Pier in Guangzhou,” a respectful voice came from outside the door.
Guo Yi nodded. His life secretary standing beside him, Yi Liu, answered loudly, “The Master knows.” His two maids had undergone political review and “re-education” after returning to Lingao and were now officially on the Guangzhou Station’s payroll. Yi Liu was his secretary, and Zhi Tao was his confidential clerk.
He stood up. Yi Liu quickly removed the silk cover from a large mirror on the cabin wall for him to check his appearance. The man in the mirror was dignified and imposing, his every move exuding the noble air of a man of wealth and power. The feeling made him feel a sense of unreality. Was this still him? Recalling his appearance when he worked in the security department, Guo Yi felt as if he were looking at a different person.
“How is Mr. Lü?” he asked. The others were not a concern; they were either transmigrators or naturalized citizens. But Lü Yizhong needed to be watched closely. Although he had fully exposed his lack of integrity in the POW camp and had a series of “blemishes” on his record, such as writing a letter of appeasement to the governor-general, he now had no choice but to follow the transmigrators faithfully. The Guangzhou Station planned to use him as a liaison with the Guangdong officialdom, but the transmigrators were not entirely confident in his reliability.
“Mr. Lü changed his clothes earlier. He is waiting in his cabin to disembark. Nothing seems amiss.”
“Good,” Guo Yi nodded.
Zhi Tao straightened the wrinkles on his clothes while he stood motionless, waiting for the women to complete their final touches. Then, Yi Liu lifted the door curtain for him.
Guo Yi stepped out onto the deck. The wind from the river made him shiver slightly. Looking out, he saw a crowd gathered at the Tianzi Pier, with musicians and instruments arranged. The pier had been cleared beforehand, and unrelated people and boats had been driven to one side.
As soon as he emerged from the cabin, the music at the pier struck up. Firecrackers popped and crackled. Guo Yi smiled, waved slightly to the crowd on the pier, and then descended the gangplank.
Among the welcoming crowd on the pier were many local gentry. Guo Yi spotted Liang Cunhou at a glance, his face wreathed in smiles. Then he saw Gao Ju, his prosperous face filled with the joy of reunion. A group of young masters who frequented Ziminglou were gathered together, fanning themselves and chatting… But the leader of this group was Li Xijue. Although he put on no official airs, everyone knew he was there to welcome “Master Guo” on behalf of the Governor of Guangdong, Li Fengjie.
As if afraid that a mere advisor to the Governor of Guangdong was not grand enough, the Guangzhou Prefecture and the Nanhai and Panyu counties had all sent yamen runners to maintain order. The pomp and circumstance were almost on par with that of a retiring high-ranking court official.
Three large, four-man sedan chairs covered in blue woolen cloth and more than ten two-man small sedan chairs were lined up on the pier. The large chairs were for Guo Yi, Pei Lixiu, and Zheng Shangjie. The small chairs were for their maids.
One of them was the luxurious sedan chair Guo Yi had originally used. After the Guangzhou Station’s withdrawal, it had been seized by Tian Da, who planned to take it back to the capital as a gift for his master. After Tian Da was “70-yarded,” the chair was left to fall into disrepair. This time, Li Xijue had specifically sought it out and had skilled craftsmen restore it to its former glory. Except for the glass on the windows, which had been pried off and could not be replaced—bead curtains made of fine pearls were used instead—everything else was repaired.
Li Xijue, all smiles, came forward to offer greetings and speak. Then, the assembled gentry also came forward to pay their respects. Most of the gentry present were either business associates of the Guangzhou Station or regular patrons of Ziminglou, already considered “pro-Australian.” When the government launched its punitive expedition, they had suffered somewhat. Young masters like Dong Jizhong and Wu Zhixiang, in particular, had been reprimanded by their fathers and elder brothers for their close association with the “Australian rebels.” Now, they were exultant, each one in high spirits.
Gao Ju, beaming, cupped his hands in a salute. “The clouds have parted to reveal the sun! Has the Master been well?”
“Many thanks to the great official Gao for your help!” Guo Yi knew that after the Guangzhou Station left, Gao Ju had done much to protect its interests and was a partner who had stood the test.
“Not at all, not at all. With the Master’s return to Guangzhou, it is like a dragon escaping the shallows, ready to soar to great heights.” Gao Ju’s mouth was full of compliments. Only then did he say in a very low voice, “I wonder when I might be able to pay a visit to your residence?”
“You are too kind. Please give me three days, and I will personally pay you a visit.”
“Good, good,” Gao Ju said with a smile, stepping aside.
After the gentry had paid their respects, there was another flurry of activity. Everyone got into their sedan chairs. The luggage would be transported to the Huifu Street residence by the men of the Qiwei Escort Agency who had accompanied the boat—on Li Xijue’s orders, the residence had been unsealed, cleaned, and tidied.
Led by a “vanguard horse,” the procession of sedan chairs made its way towards Huifu Street with a large entourage. Not only were there yamen runners from the Guangzhou Prefecture and the Nanhai and Panyu counties clearing the way, but personnel from several other government offices in the city were also there to assist. This attracted crowds of citizens along the streets to watch the spectacle.
“That’s Guo Yi!” someone said. “Look at this display, what a grand style!”
“Weren’t the Australian rebels said to be traitors…”
“Shh! How can you call them traitors! He is the legitimate Master Guo!”
“The officials really change their tune faster than one can flip a book…”
“This is called ‘different times, different circumstances.’ Besides, whether they are Australian rebels or masters, it has little to do with us common folk. But now that he’s back, the Zi-brand shops can all reopen, and we’ll have a place to buy Australian goods again.”
Sitting in his sedan chair, Guo Yi thought back to the desperate situation when the Guangzhou Station had hastily fled more than half a year ago. It felt like a lifetime ago. Guangzhou was still a land of great opportunity for him.