1982 Started from Hong Kong

Chapter 456 China, Hong Kong, and Mount Kinabalu

10 month 2 day,
Zhai Yuan returned to Hong Kong for about half a month, while the Seoul Olympics in South Korea officially closed.

Despite the behind-the-scenes manipulation, the mainland sports delegation won 5 gold medals, ranking eleventh on the medal table.

Hong Kong badminton players Chen Zhicai and Chen Nianci form a mixed doubles pair.

They won a historic Olympic bronze medal in Hong Kong.

At that time, badminton was only used as a demonstration sport by the Olympic Committee. The medals won by the two Chens were not as valuable as the gold medal won by Lee Lai-shan, the "Queen of Winds," in windsurfing. However, they enabled the city to stand out on the international stage and become historic representative figures in the sports world. Before they even returned to Hong Kong, Chen Zhicai and Chen Nianci had already made headlines in major newspapers.

Immediately afterward, the September 1st Daily, which had been silent for some time, dropped a bombshell:
Principal Zhai Yuan of Chunqiu Performing Arts Academy recently contacted Chen Zhicai and Chen Nianci in South Korea, sincerely inviting these two world-class sports stars to join the academy as faculty members, to cultivate athletes, and to contribute to the all-round development of the academy in morality, intelligence, physical fitness, and aesthetics…

Riding on the wave of popularity generated by the Chen brothers, Spring and Autumn College's influence has expanded once again. In less than half a year since its founding, it has become one of the most well-known colleges in Hong Kong.

This is also good news for Jiu Yi Entertainment Group, as it unexpectedly boosted the stock price.

Another reason that contributed to the stock price increase
This news came from the fact that Zhai Yuan, the head of the group, was directly appointed by the Governor of Hong Kong as a Justice of the Peace in the New Territories.

Countless high-ranking officials in the Hong Kong government were wide-eyed with disbelief. Police Commissioner Lee Kwan-ha had only been discharged from the hospital not long ago, and Wei Yixin not only failed to appease this top officer, but also blatantly continued to support Zhai Yuan.

Is economic development more important than the reputation of the disciplined forces? This has become a recurring question that Wei Yixin has been asked by those around him recently.

"There are tens of thousands of police officers in Hong Kong. What is everyone's attitude towards the top cop? The guys just treat being a cop as a job. Now, Zhai Yuan has injected HK$800 million into the Police Officers Foundation to give their children priority access to the education fund. Do you think that even if this matter is exposed, people will stand up for Li Junxia?"

Inside Government House, William H. said to the Chief Secretary for Administration and the Secretary for Justice, “Besides, who leads the disciplined forces is up to you, Chief Secretary for Administration. I am merely exercising the Governor’s power to appoint a JP. Besides, I haven’t retired yet, so there’s no need for you two to come here personally to hold me accountable.”

“There’s no need to talk about accountability so seriously.” Secretary for Justice Tang Mingzhi smiled and said, “I just received news that Inspector Wai has recently been impeached again at the Zu family’s house. I’m worried that you won’t be able to explain it when you go back, so I’m just showing my concern.”

Wei Yixin smiled dismissively: "Since I took office, I have been receiving impeachments without stopping. But I must stand firm to the end. In short, I have a clear conscience. When Sir Edward Youde was alive, he often said, 'Don't let this city become a political sacrifice.' I think he was right."

"That's true, but we still have to consider the family's reputation. The appointment of a Justice of the Peace is enough..."

Chief Secretary for Administration, Hodd, said, "But the Eastern Telegraph Company is a British-owned enterprise, and its communications business has always been operated by the state. I cannot accept, in any way, Mr. Wei's attempt to cancel their franchise."

"It was only during my trip to South Korea that I realized that Hong Kong's telecommunications business has become what it is today because it is run by the state, which does not give private operators a chance to stand out and creates a monopoly."

Wei Yixin looked at Huo De and said seriously, "You should have read the proposals I sent to you two. Da Dong's business capabilities are obvious to all. Besides, it's not about canceling their operating rights. It's just about having one more company compete. The rest will be decided by the market. What's wrong with that?"
Earlier this year, I was invited to attend a symposium on economic reform in mainland China, held at the China Merchants Building in Shenzhen. A heated clash of old and new ideas took place. The older generation of experts unanimously agreed that individual business owners should contribute the majority of their wealth to the state for unified planning and management. However, the younger generation believed that they should enjoy the fruits of their labor, arguing that in a globally integrated trade environment, survival of the fittest is essential for continuity and stability. After the symposium, the older generation of experts unilaterally declared that these young people had gone astray. However, when the meeting minutes were later released, the incident sparked widespread commentary around the world, and the experts were severely criticized, facing condemnation from hundreds of mainland media outlets.

What I meant by this was that if Secretary Hodgson felt the Eastern Telegraph Company should maintain its monopoly and that private operators had no right to interfere in communications, we could easily hold a similar symposium in Hong Kong and solicit opinions from around the world. Secretary Tang, the Department of Justice has always championed democracy; this matter is certainly democratic in itself. Why not entrust the preparations to you?"

Huo De/Tang Mingzhi: "..."

They were persuaded by the Eastern Telegraph Company to put pressure on Wei Yixin, but unexpectedly they were outmaneuvered. They held a symposium in Hong Kong for international media to judge. If it weren't for Zhai Yuan's advice, neither of them would believe that the usually mature and prudent Wei Yixin could come up with such a despicable idea.

"It's our own business, there's no need to let outsiders laugh at us."

After a moment of silence, Tang Mingzhi chuckled and said, "According to the regulations, the telecommunications franchise of the Cable & Wireless is subject to regulation by the Hong Kong government to ensure service quality and social interests. Because there has never been a precedent for private enterprises to get involved, the legal provisions in this regard are not yet clear. If Inspector Wei insists on supporting Zhai Yuan, the Department of Justice will convene a Legislative Council meeting as soon as possible to draft new regulations..."

Wei Yixin interrupted, asking, "How long will it take?"

"About six months."

"Director Tang, has the Department of Justice always been this efficient?"

Wei Yixin was amused and said bluntly, "Zhai Yuan has already brought technical personnel from South Korea. They have surveyed the terrain and can start construction. So I will give you at most half a month. If you can't get it done in half a month, I will immediately establish a special government agency to serve the Hong Kong government's communications, take over the function of supervising the telecommunications industry from Hong Kong Post, and be directly led by the Governor of Hong Kong. Any problems?"

Having worked together for so long, this was the first time Tang Mingzhi had heard Wei Yixin speak in such a forceful tone. He glanced helplessly at Huo De beside him, nodded, and said in a muffled voice, "Understood, I will get it done as soon as possible."

“There’s more.” Wei Yixin looked at Huo De again and said, “I just received an invitation from the mainland to go to Beijing to discuss the revision of the basic regulations. Coincidentally, the head of the Great Eastern Telegraph Bureau is also coming from England to see me. Due to the difference in importance, I’ll trouble you to entertain the Great Eastern head when he arrives in Hong Kong. Also, please convey to them that if Zhai Yuan’s communications company doesn’t succeed in Hong Kong, they will consider transferring its business to Central and South America, starting with Panama, the registration location of the Natural Selection. I believe the President of Panama will welcome him with his funds and technology…”

…………

At the end of last month, as the South Korean Olympics were drawing to a close, China successfully conducted its first neutron bomb test, becoming the fourth major power to possess neutron bomb technology after the United States, France, and the Soviet Union. Following this, the electron collider at the Yenching Laboratory achieved its first successful collision, and China's first high-energy accelerator was successfully built… All negotiations are based on strength.
The drafting of the basic regulations also accelerated during this period, with the mainland taking the lead and gradually finalizing many details.

Wei Yixin, who had just returned from South Korea a few days earlier, rushed to the mainland again.

Before leaving, I called Zhai Yuan and we chatted for a bit about what happened at Government House and that the Department of Justice would announce the cancellation of the Eastern Telegraph Company's monopoly on communications in two weeks.

At that time, Zhai Yuan was surveying the terrain in the New Territories with a professional team from South Korea. After receiving a positive reply from Wei Yixin, he immediately informed He Zilang that he could proceed with the formal registration of his communications company in Hong Kong.

With all projects yet to be finalized, the employees were still Tao Zongyi and the original staff from Kuaibo Technology, all offering suggestions on naming the new company.

'Hong Kong Communications', 'Mars Communications', 'Global Telecom', 'SmarTone'...

They mostly referenced the naming conventions of international companies, and their intention to target Taiwan was particularly obvious, especially the Great Eastern Telegraph Bureau.

Xiangjiang Communications vs. Da Dong's Xiangjiang Telecom, Mars Communications vs. Da Dong's Mercury Communications in the UK.

Zhai Yuan listened to each of them, but was dissatisfied with all of them, shaking his head repeatedly.

Looking back at the history of Hong Kong's communications, from the earliest Sino-Japanese Telephone and Electricity Company in Japan, to Hong Kong Telephone established by Hong Kong Land Group after acquiring Sino-Japanese Telephone and Electricity Company, and then to the three companies that were reorganized by Hong Kong Telephone and then by the Eastern Telegraph Company, namely Hong Kong Telecom, Macao Telecom and Pengcheng Telephone Company, the whole lineage is quite clear. In terms of domestic and foreign communications business, Chinese capital has no advantage in any way.

"So this time I plan to overstep my bounds and change the name of the new company to include the Chinese character '中' (zhong), to commemorate this historic moment."

Zhai Yuan smiled and said something, then wrote a bold stroke on the registration form – Zhonggang Communications.

After all, it is a social enterprise, unlike companies under an entertainment group, so making jokes at this time would be somewhat inappropriate.

After Zhai Yuan finalized the establishment of the new company 'Zhonggang Communications', he then restructured the Dongyang Semiconductor business that Tao Zongyi was in charge of.

In the past, Toshiba was used to ride the wave of popularity and boost orders, but now Toyo Semiconductor can remove the Toshiba name from its name.

Officially renamed – Shenshan Electronics.

Future new orders, especially this business deal with South Korea's Samsung Group, will be exported through the company "Kamisan" in the contract. Although 90% of the employees are still from Toshiba Semiconductor, Toshiba's influence has been completely wiped out from this point on.

Throughout October,
China Communications started its survey in the New Territories, beginning in Sheung Shui, which is adjacent to Shenzhen.

It extends from Sai Kung in the east to Yuen Long in the west, from Chai Wan in the south to Tai Po in the north.

This forms a large network that encompasses the entire Hong Kong Island and Kowloon New Area.

A rough estimate suggests that at least seven base stations are needed to provide full digital signal coverage. If areas such as Lantau Island, Lamma Island, and Cheung Chau are taken into account, the number would need to be increased. Laying submarine optical cables is an even larger and more costly project.

Hong Kong is roughly the size of two Seouls. This year, Seoul has over two million telephone lines, with a fixed-line telephone penetration rate of 70 per 100 people and a mobile phone penetration rate of 20 per 100 people. In contrast, Hong Kong's fixed-line telephone penetration rate is still around 50 per 100 people, and its mobile phone service is barely in its infancy, lagging behind Seoul.

"According to a survey conducted by a South Korean team, if the main mobile phone business is located in Hong Kong Island and Kowloon, the development speed in the New Territories is slowed down, and fixed-line telephone lines are the main focus, while internet digital lines are concentrated in the business district centered on Admiralty and major university communities, the cost will be reduced by more than half."

At the end of the month, Tao Zongyi met with Zhai Yuan and informed him of the results the South Korean team had obtained during this period.

Zhai Yuan casually flipped through the investigation report, glanced at the key points, and asked, "Is there any technical difficulty in the entire project?"

Tao Zongyi shook his head: "Telephone business experience is relatively mature, so there are no difficulties. As for the Internet, everyone learned the technology from the United States. After the infrastructure is built, it will still need to be connected to the network center in the United States. After all, no country can develop its own network center at present."

At that time, the five network centers in the United States encompassed almost all of the world's data transmission.

Zhai Yuan nodded in understanding, pondered for a long time, and continued, "The new mobile and landline lines in Hong Kong and Kowloon should all be laid out. The internet coverage can be slowed down in the New Territories, but it still needs to cover Hong Kong Island and Kowloon. If we're going to do it, we should be comprehensive. There's no point in being stingy and squeezing out incremental improvements."

Tao Zongyi smiled upon hearing this, and then reminded him, "However, this will increase the cost beyond what we originally agreed upon with Samsung, and we will have to make up the difference with real money."

"Let's get started as soon as possible," Zhai Yuan said, putting his arm around Lao Tao's shoulder. "I'll take care of the money. These kinds of projects take at least a year to complete, so we have plenty of time..."

(End of this chapter)