A century-old wealthy family that rose from Shanghai

Chapter 400 Victory or Defeat?

On the eve of the Spring Festival in 1954, The New York Times in the United States and the South China Morning Post in Hong Kong simultaneously reported a news story—according to a revelation from Jardine Matheson, Chen Guangliang had transported a large amount of 'embargoed materials' to the mainland during the Korean War and was a war profiteer.

The news caused a sensation throughout the Western world, especially in the United States, where the media even threatened to "ban Chen Guangliang".

The 'British American' superyacht.

After learning of this news from the wireless telegram, Chen Guangliang's face turned ashen.

He never dreamed that Jardine Matheson would step in and get involved at this time.

It should be noted that Jardine Matheson itself was the biggest smuggler, transporting far more British supplies than Chen Guangliang during the war. Unexpectedly, Jardine Matheson is now turning the tables, smearing Chen Guangliang.

"shameful"

However, Chen Guangliang felt that he was in big trouble, much bigger than he had been in the previous month.

In the preceding month, the United States mobilized various media outlets and forces, uniting shipowners from multiple camps to retaliate against Chen Guangliang; Chen Guangliang had anticipated all of this and was prepared to face it.

Now, Jardine Matheson's accusations have put Chen Guangliang in a somewhat passive position—if he is listed as a 'banned person' by the United States, it will undoubtedly be a huge loss.

"Yihe, don't let me find a chance to deal with you!"

Yan Renmei walked to Chen Guangliang's side and said worriedly, "Won't we make things too big? Should we back down?"

The husband rarely showed such a troubled expression, but the pressure from all sides was indeed immense these days.

Chen Guangliang waved his hand and said, "No! I will not beg for mercy. I believe that Jardine Matheson's accusations cannot become law, and the US government will not make a decision so easily, even if I offend the United States this time."

During the Korean War, Chen Guangliang chartered a large number of cargo ships to Japan—this is an undeniable fact. Jardine Matheson's accusations, however, were merely one-sided at that time. Crucially, after the war, the US government had no concrete evidence against Chen Guangliang, and it was even less likely that they would convict him based on such public opinion.

Moreover, Chen Guangliang believed that this was a conspiracy by American oil giants, a desperate tactic they were resorting to.

Sure enough, a few days later, George, the head of the U.S. consulate, arranged to meet with Chen Guangliang.

Upon meeting, George said, "Mr. Chen, first of all, we deeply regret your smuggling of prohibited supplies during the Korean War. The U.S. Department of Commerce is currently discussing penalties against you!"

To interrogate? To exert pressure?
Chen Guangliang stated directly, "Mr. George, at this time, your decision to listen to Jardine Matheson's one-sided account raises serious doubts about the intentions and fairness of the US government. You know my performance during the Korean War, Mr. George. I am just a businessman who only does things that do not violate laws and regulations. Therefore, I will not admit to any of Jardine Matheson's accusations. My lawyer will explain later."

He bet the U.S. Department of Commerce was just bluffing. Not only did he not directly participate in the 'smuggling of goods' at the time, but the fact that he wasn't listed as a 'prohibited person' immediately after the war also indicated that it was a form of intimidation.

George shrugged and said regretfully, "Mr. Chen, some things are not up to you, and some things are up to you. So as long as you make concessions, I believe this storm will end."

Chen Guangliang firmly stated, "Mr. George, I only believe in justice. Jardine Matheson's slander is nothing more than an attempt to clear their own name as smugglers."

Seeing that Chen Guangliang remained unmoved, George said nothing more.

In reality, as the head of the Hong Kong consulate, he still believed in Chen Guangliang's 'innocence,' but this time he was just on assignment.

Since he's already made the trip, the rest isn't his problem.

For a period of time, Chen Guangliang withstood the pressure, but the young Saudi king ultimately could not withstand it.

After the Spring Festival, two media outlets simultaneously reported that a Saudi official stated that Chen Guangliang had obtained the "Jeddah Agreement" by bribing officials with large sums of money and forging documents.

The official named two Saudi Arabian ministers, saying they accepted huge commissions from the shipping magnate and worked tirelessly to influence the king. He also revealed that Chen Guangliang may have paid a huge commission to another sheikh, but used a faded signature dye to make it disappear, preventing the sheikh from claiming the money. The official admitted to acting as an intermediary for the shipping magnate, tasked with maneuvering among Arab royalty and using numerous fraudulent methods; he himself was also a victim.

These accusations shocked the entire Western world, and the Saudi Arabian king was suddenly put in a completely passive position, with all the news pointing to the Arab palace that had been "fooled and deceived".

This development was completely unexpected for Chen Guangliang, because he had never done such a thing. But now, any explanation or rebuttal would be futile; he had no choice but to remain silent.

Finally unable to withstand the criticism from all sides, the Saudi king tore up the already signed "Jeddah Agreement" one morning, calling it an incident of "deception and treachery."

The king's every move was reported in the newspapers, and the "Jeddah Agreement" ceased to exist without any practical effect, causing only a great struggle.

The commercial battle for control of Arab oil transportation rights has come to an end, and Chen Guangliang lost a fortune of 'one billion US dollars' in the process.

But he still wanted to be a shipping magnate and depend on the international shipping industry for survival; he couldn't keep fighting against the whole world indefinitely.

Spring has come again (1954).

Starting in 1954, land prices in Hong Kong's prime commercial areas began to soar.

On this day, Chan Kwong-leung arranged to meet Kadoorie at the Hong Kong Hotel in Central, Hong Kong.

Today, the two families are rivals: one owns the Peninsula Hotel, the most luxurious hotel in Kowloon, and the other owns the Shangri-La Hotel, the most luxurious hotel on Hong Kong Island.

Even if they are rivals, they can still be 'friends'—business friends, of course, learning from each other.

But today, Chan Kwong-leung came on business. He said directly, "This hotel in Central is old and its business seems to be greatly affected."

Kadoorie said calmly, "It has already fulfilled its historical mission, even without the opening of the Shangri-La Hotel."

The implication is that he doesn't value this hotel much, after all, this Hong Kong Grand Hotel, a mere six-story tenement building, has been in operation for thirty years. Its construction itself didn't require a large investment, and it has already generated many times its initial investment in profits.

Chen Guangliang laughed and said, "In that case, how about Kadoorie transfers this territory to me?"

Kadoorie immediately became serious and asked, "What are you planning to do?"

Chen Guangliang said, "Office buildings."

Kadoorie has no doubt that the Chan family already owns three major properties in Central: the Ping An Bank Tower, the Global Group Centre, and the Shangri-La Hotel, which fully demonstrates their emphasis on properties in Central.

"Mr. Chen, these properties have only just begun to recover after the war, so the subsequent price increase is bound to be considerable!"

“It’s very simple. I can offer you a Central property at the previous highest transaction price of HK$300 per square foot, plus 20%, which is HK$360 per square foot. This price is about 50% higher than the market price, which is my way of showing my sincerity.” During the Korean War, Hong Kong property prices shrank significantly. Currently, commercial land in Tsim Sha Tsui is around HK$100 per square foot, while on the main island it’s only around HK$200 per square foot. This piece of land is relatively high-quality, but it should only be worth around HK$250 per square foot.

But Chen Guangliang understood that commercial land in Hong Kong was bound to experience a surge in prices in 1954-1955.

Kadoorie isn't stupid; he wouldn't sell at a low price at this time.

However, upon hearing the price of HK$360 per square foot, he readily agreed, saying, "That's feasible, but I have one condition: after signing the contract, we must continue operating for another year."

"Can"

Soon, another transaction worth HK$720 million was completed.

Chen Guangliang's acquisition of the Hong Kong Hotel on Pedder Road was not purely for the purpose of building office buildings, but rather to teach Jardine Matheson a lesson.

The site of the Hong Kong Grand Hotel is located in the heart of Central, which is also the home of Landmark.

If he bought this land and only built a first-class Grade A office building, it would be no different from the Zhongjian Building (the famous doctors' building) built by Xu Aizhou in later years. This would not be considered a 'blow' to Jardine Matheson.

Therefore, Chen Guangliang's next goal is to acquire Lane Crawford, one of the two high-end department stores in Hong Kong, the other being Inchcape; while Wing On and Sincere are only mid-to-high-end department stores.

Chen Guangliang's real purpose in intending to acquire Lane Crawford was not to enter the department store industry, but to take a liking to the properties under Lane Crawford's ownership. The most important of these properties is the Lane Crawford Building on Pedder Road, which is located on one side of the Hong Kong Hotel; on the other side of the Hong Kong Hotel is the Gloucester Building (9 floors).

Once Chen Guangliang completes the acquisition of Lane Crawford, he can build a commercial complex in the area, including office buildings and a shopping mall.

In reality, it is a combination of the later Landmark and Gloucester Tower.

This time, Jardine Matheson betrayed its Hong Kong counterparts, and Chan Kwong-leung also decided to use a sword to plunge into the heart of Hongkong Land.

On this day, Chen Guangliang convened a secret meeting with plastics industry talents from the Yangtze River Industrial Group.

In recent years, Huatai Plastic Toys Factory of Yangtze River Industrial Group has mainly produced various plastic toys.

Of course, this industry is only a small industry for Cheung Kong Industrial Group, with an annual output value of only two or three million Hong Kong dollars; for Chen Guangliang, it is an insignificant little business.

Of course, that's only relative to Chan Kwong-leung and Cheung Kong Industrial Group, but Wah Tai Plastic Toys Factory's scale is already among the top three in Hong Kong.

Today, Chen Guangliang invited the "plastics talents" from Huatai Toys Factory, as well as some management personnel from Yangtze River Industrial Group and Huatai Plastics, clearly preparing for a big move.

"Everyone, the reason I've gathered you all here today is because I've come up with a novel idea that I believe could be sold all over the world. As you all know, families in Europe and America love to decorate their homes with fresh flowers, right?"

Everyone nodded, looking at the big boss with some suspicion.

This is truly a super big boss; this is a world-class businessman who almost scared the US to death.

Chen Guangliang continued, “These plants and flowers often require watering, fertilizing, pruning, and weeding. With the increasingly fast pace of modern life, many housewives have become working women, leaving these families with little leisure time to tend to flowers. Furthermore, the flowering period of plants is limited, requiring the replacement of flower varieties every season, which is quite troublesome. Therefore, I hope to use plastic materials to make various flowers. Modern people take pride in keeping up with trends, and the introduction of plastic flowers will trigger a revolution in the plastics market, with extremely optimistic prospects.”

Everyone was drawn to it!
A technician then said, "Plastics can be made into many things. Over the years, we have accumulated considerable experience in plastics through developing toys. Now, making flowers out of plastic requires more sophisticated technology. Of course, if we can replace them with better plastic equipment, we can also improve efficiency."

Chen Guangliang laughed and said, "As long as you develop it, purchasing the most advanced plastic equipment will not be a problem. In fact, all the R&D personnel involved in this team must keep it a secret. Once we successfully develop plastic flowers, our first consideration will be selling them all over the world, so we need to prepare the quality, variety, and scale in advance. I can boldly predict that this will be a pillar industry of Hong Kong, equivalent to textiles and garments, with a global market size of at least several hundred million Hong Kong dollars."

In his previous life, Li Jiacheng needed to go to Italy to study, but his companies obviously didn't.

In fact, Italy had just successfully developed the product in its previous life and published it in the magazine "Plastics" (a global magazine), and it was about to be sold to European and American households. Li Jiacheng happened to see this news and went to learn the craft from them. That was around the end of 1956.

Now, Chen Guangliang hopes that his company can successfully develop the technology by the end of the year.

At this moment, everyone in the conference room became excited and couldn't wait to get started on the research.

One of the technicians immediately said, "We need to select one variety first and focus our research and development on it, including the manufacturing process and color matching."

Chan Kwong-leung also joined the discussion, saying, "There must be a wide variety of plastic flowers. Hydrangeas are definitely the most popular, followed by grapevines, roses, and so on. Preferences vary from region to region, and we can investigate that later. The most urgent task is to mobilize R&D resources and even recruit plastics talent from all over Hong Kong. After all, we can't just throw away toys, and there's great potential for future development."

"Yes, Mr. Chen."

Everyone enthusiastically threw themselves into the project, because they understood that once the research and development was successful, the global market worth hundreds of millions, even if they only captured one-tenth of it, would be enough to make Huatai Plastics Factory the third largest enterprise in the Yangtze River Industrial Group, second only to Xinfeng Textile and Rongchang Heavy Industry.

Shortly after the plastics meeting ended, Chen Guangliang summoned Guo Deming, the deputy general manager of the Yangtze River Industrial Group.

"There's another matter. Cheung Kong Industrial Group is going to establish a subsidiary to develop 'wig' products. Currently, the main manufacturers of these products are in France, with blonde hair being more common and black hair being rare. East Asians generally have black hair, which makes it easier to dye, and Hong Kong has a geographical advantage in making wigs. The buyers of wigs are mainly bald people and entertainers (for performance props), but a new type of trendy youth has emerged in the United States. They are cynical and pursue the bizarre, so the demand for wigs will inevitably become stronger. What you need to arrange is to build a management team, go to Europe and the United States for research, and then return to Hong Kong to conduct research and development. This is also a huge industry, and we want to be the pioneers in Hong Kong."

Although Guo Deming is the deputy general manager of the Yangtze River Industrial Group, Xinfeng Textile and Rongchang Heavy Industry are actually part of the group, so he only serves as a liaison officer and financial coordinator. Now that the boss has decided to develop in the field of plastic flowers and wigs, he has more work to do, since the boss is only responsible for assigning tasks and supervising the process.

“Okay, I understand what the boss means. Set up the wig business unit as soon as possible. In addition, we will secretly conduct research and development and organize large-scale production of both plastic flowers and wigs. We are determined to occupy most of the market before other factories in Hong Kong can react.”

Chen Guangliang waved his hand and said, "There's no need to force it. We could foresee the prospects of the two products from the beginning, so we will definitely make some preliminary arrangements. As for the later stages, when the Hong Kong factory reacts, we can become the industry leader again, so there's no need to be too concerned about the details."

"Um"

This is a technique used in operations.

In the early stages, they made many preparations to try to capture a large share of the market.

Hong Kong has the most copycat companies, and once they discover something is profitable, they naturally flock to follow suit. At that point, Cheung Kong Industrial Group won't need to be so meticulous about patents or strictly guarding its technology; it's unnecessary, since these aren't exactly advanced technologies.

However, Chen Guangliang could choose to prioritize entrepreneurs from Ningbo and Shanghai, allowing factory owners from these areas to occupy the majority of the market share in these two industries.

After all, in his previous life, Li Jiacheng was the first to make plastic flowers in Hong Kong, and later entrepreneurs from Chaoshan occupied the main share of this industry.

Although Chan Kwong-leung has always emphasized being a "Hong Konger," he also hopes that in the future, there will be a balance between Cantonese and Shanghai businessmen in Hong Kong, and that he will be the leader of these entrepreneurs.

It's just a neutralization, not discrimination against people from Guangdong. After all, if the real estate industry develops, people from Guangdong can rise to prominence.

(End of this chapter)