Spy Wars: Red Shopkeeper

Chapter 265 Claim
"What do we do now? What do we do now?"
The Japanese are playing dead now, and all those merchants are coming to me asking for cotton yarn. Where am I supposed to get cotton yarn for them? What does it have to do with me?

In the teahouse, Fu Xiao'an pounded on the table in front of Gu Yansheng, so anxious that blisters appeared on his lips.

I originally thought the Japanese would either return the cotton yarn or pay me, it was just a matter of a few days, and the Japanese would eventually come forward to resolve the issue once they made their money.

It's impossible to let so many pro-Japanese businessmen suffer losses.

But now that they've heard about what happened in the concessions, the Japanese have lost everything, they're furious!
Those cotton yarn merchants were also well-informed; they came to the city government building in a panic, crying and shouting, and even brought a large group of reporters with them.

They were convinced that Fu Xiao'an was an easier nut to crack than the Japanese, so they abandoned their efforts to conquer the loss-making Japanese Chamber of Commerce and instead put Fu Xiao'an in charge.

What the fuck.

Really good at reading people.

For a businessman, the most important thing is reputation. How can you do business if you lose your reputation?
Now that the cotton yarn war has come to an end, reporters are interested in the inside story, and a group of foreign reporters are eager to interview him.

We can't even get into the municipal government; there's no way to solve this problem.

There's no cotton yarn, and if he wants money, why should Fu Xiao'an compensate him?

"Take your anger out on the Japanese, why are you banging on my mahogany table?" Gu Yansheng glanced at Fu Xiao'an, secretly amused. He guessed that the old scoundrel had probably done a lot of short selling, and now he'd been wiped out by the people in the concession.

However, the outcome of this cotton yarn war was indeed unexpected.

The strong stance of the concession capital thwarted Gu Yansheng's two plans.

One possibility is that the plunge in futures prices could trigger a stock market crash, causing Shanghai's entire economy to collapse once again.

One reason was that the crash in futures prices wiped out Gao Zhongwu's wealth. With both money and power gone, the Military Intelligence Bureau offered him benefits, leading him to defect to the rebel Wang Jingwei.

Now, according to Chen Mo, Gao Zhongwu is actually quite talented; by chasing highs and selling lows, he actually makes a decent profit.

Ding-ling-ling. Ding-ling-ling.

"Have some tea, things can always be resolved," Gu Yansheng comforted him, then answered the phone, "Who is this?"

“Mr. Gu, it’s me, Lu Bowen.” Lu Bowen’s voice came through the phone.

"Mr. Lu, what's wrong?"

“I just received a call from the factory saying that the British sent a lawyer to our door, demanding that we fulfill the agreement and hand over the cotton yarn, otherwise they will sue us in court and demand ten times the compensation.”

"He actually came to ask for compensation?" Gu Yansheng was surprised to hear this and scoffed, "He's made so much money, yet he won't even let go of a little bit of it. He's a bit greedy."

"Mosquito meat?" Lu Bowen was surprised. "This is not mosquito meat. Our factories are supposed to deliver 13,000 bales of cotton yarn on time, but we can't produce a single bale. According to the agreement, we have to compensate him 9.1 million silver dollars."

"He requested a delivery date."

"The goods must be delivered today, or he will sue tomorrow."

"Okay, I got it. Come to me in half an hour. That's all for now."

Gu Yansheng put down the phone and said to Fu Xiao'an, "The debt collectors are here. Sassoon wants ten times the compensation."

Upon hearing this, Fu Xiao'an's anger flared up instantly. "He's already made so much money! And he's still fixated on that little bit? Does he really not want to stay in Shanghai anymore?"

“They withdrew from Chinese-controlled areas a long time ago.”

Gu Yansheng's words caused Fu Xiao'an to become withdrawn.

"That scoundrel, I should have known he was up to no good by offering 90 units of cotton yarn!"

"He'll pay 90 for your cotton yarn?" Gu Yansheng paused when he heard this, as he was about to dial a number for Sassoon.

“Yes, isn’t that right?” Fu Xiao’an cast a questioning glance his way.

Gu Yansheng only asked the question casually, but now isn't this making things awkward?
That would be awkward.

He said quietly, "This is my 100."

"Damn it! My cotton yarn is contaminated with poison, isn't it? And you still deducted ten yuan from the price! Huh?" Fu Xiao'an glared at Gu Yansheng, his temper about to explode.

Don't look at me, look at Sassoon. Who told you to have a grudge against Sassoon?

Gu Yansheng picked up the phone and the call connected.

“Hello, Mr. Sassoon.” Gu Yansheng said with a smile.

"Haha, Mr. Gu, what brings you to call me?" Sassoon was even more delighted.

Gu Yansheng said with a faint smile, "Congratulations on making a fortune. You must have made a lot of money, killing Japanese people crying for their fathers and mothers at the exchange."

"Hahaha, Mr. Gu is very well-informed, but I didn't make much. My business is not doing well right now, and I don't have much cash. I just participated for a bit."

"Why are you being so modest? I'm not here to freeload. I'm asking you something. I heard from factory owners in western Shanghai that you're planning to sue them?"

Sassoon stated bluntly, "Yes, that's right. The tenfold penalty for breach of contract was set up for this day. Some people knew that the Japanese had no goods and might reach out to factories in the Japanese-occupied areas. So we used a high price to gamble on the compensation the Japanese would receive later, it's that simple."

"You won the bet, but didn't you put me in a bad position? I was the one who helped them get the factory, and now you want ten times the price? That's not fair."

Don't worry.

I certainly wouldn't do that to my friends.

Don't worry, I won't actually claim compensation from the factory you introduced, but I will pursue tenfold compensation from all other Shanghai factories besides the one you introduced.

Let me be frank: most of the cotton yarn factories in Shanghai are in the hands of Fu Xiao'an, and I'm targeting him.

He made a lot of money this time. We know exactly what we gave him, and he can afford to lose it.

"Aren't you a good friend?"

If that's the case, then Gu Yansheng could continue being friends with him.

However, there are some things that are not easy to say in front of Fu Xiao'an.

Gu Yansheng looked at Fu Xiao'an and said, "So that's how it is. Actually, you could have told me in advance."

"I can't say."

Although I asked you for help with the cotton yarn issue, the actual investors were not me, but the Rothschild family and the Morgan family behind HSBC.

They offered to fund the acquisition, and I stepped in to communicate. At that time, no one's goal was compensation; our aim was to acquire the cotton yarn so that the Japanese would be unable to deliver the goods on the futures market.

At that time, no one could be sure what the Japanese would do. They might choose not to deliver the goods and simply close out their short positions at a loss.

If that's the case, the Japanese won't come to buy cotton yarn. If Morgan and Rothschild buy cotton yarn from all over the city at high prices, won't they lose money?

From a business perspective, this is a gamble for them; every business has to yield a return.

I've tried my best to exclude you and ensure that this matter won't affect your interests. But shouldn't I also ensure their interests?
So you have to understand my situation; I really can't say.

Gu Yansheng was understanding. "I understand. So, what about the goods here?"

"We will continue to fulfill the contract as scheduled, and the missing goods during this period will be replenished later."

"You still want cotton yarn? What use is cotton yarn to you now?"

"Hehe, it's very useful. Have you forgotten that there is no cotton yarn left in SH City? To be precise, Japanese companies sold all of their military cotton yarn this year, and all of that yarn was destroyed in a fire in the concession."

But they still have to deliver cotton yarn to the military. What can they do if there's no yarn?
"I have to buy this; it's a necessity!"

Gu Yansheng admired them; these businessmen were truly shrewd, having outmaneuvered the Japanese with a series of elaborate schemes.

"Okay, let's do this first."

Gu Yansheng hung up the phone and looked at Fu Xiao'an. Fu Xiao'an frowned and asked, "What did Sassoon say?"

“He said that it was not him who made the demands, but the Morgan and Rothschild families behind HSBC, so they will definitely sue and demand ten times the compensation. He cannot change that.”

"It's still him!" Fu Xiao'an said angrily. "His whole family are major clients of HSBC, and his uncle is the son-in-law of the Rothschild family! Who are they trying to fool?"

"His uncle?" Gu Yansheng asked, intrigued. "He has connections to the Rothschild family?"

“Of course.” Fu Xiao’an said with a long face, “In his early years, he served in the British Air Force. Later, he became lame and came to Shanghai to make a name for himself. All the connections he made were said by him to put on a show.”

Why do you think he's so influential in the British upper class? Do you really think it's just because of his lame leg from the bombing?
That's because his uncle, Philip Sassoon, was the private secretary to British Field Marshal Hague during World War I and later became the Deputy Secretary of State for the Royal Air Force.

That's when he went to serve in the Air Force.

His uncle's wife was a daughter of the Rothschild family.

A marriage alliance, you understand now?
Otherwise, why would he represent Britain and make a living from the arms trade?
Now he's acting all high and mighty, thinking everyone's forgotten, and he's pretending not to recognize them. Does he really think Shanghainese people have no memory? Who does he think he's fooling?

"Those foreigners, not a single one of them is any good!"

There's such a connection? Gu Yansheng was enjoying the gossip, but the matter still needed to be resolved.

"Now he's demanding ten times the compensation, what are you going to do?"

"I have no money, but I'll take your life if you dare!" Fu Xiao'an glared. "I'm so indebted now that everyone's asking me for cotton yarn. Where am I supposed to get cotton yarn? Even if I turn the machine upside down, it'll still take time."

Gu Yansheng chuckled; there was a loophole in this matter.

Fu Xiao'an actually had businesses in the concession, but it's obvious that the people who signed the contracts were his factory managers or similar individuals.

If the British sued in the concession, at most they would confiscate the assets under the factory manager's name, not Fu Xiao'an's.

If someone were to file a complaint in the Chinese-speaking region, unless Gu Yansheng gave his approval, who would dare to take on Fu Xiao'an's case?

After half an hour.

Lu Bowen came to find Gu Yansheng with a worried expression.

Gu Yansheng immediately criticized him upon seeing his expression, "Why are you panicking? It's just a little bit of cotton yarn."

"Nine million one hundred thousand! My brother, they have a contract in hand. If they sue us, we're finished." How could Lu Bowen not panic when he thought of that price? It's all the fault of the Japanese.

"Who's finished? Are you finished or am I finished?" Gu Yansheng laughed. "I have the power to interpret the law, so what use is a contract?"

Lu Bowen stared blankly at Gu Yansheng with eyes full of admiration. "My god, you look so cool when you act like a scoundrel."

How could he not have thought of that?
"What if they file a complaint in the foreign concession?"

"He could sentence the Japanese Emperor to death if he wanted, but would it make a difference?"

"Hiss!" Lu Bowen suddenly realized, "So this contract is completely useless?"

"Nonsense, otherwise would I let you sign a tenfold contract that's obviously suspicious?" Gu Yansheng smiled faintly: "Don't worry, even if it's ten thousandfold, it's fine."

I've spoken with Sassoon; he won't pursue the matter against you.

"Sassoon is so easy to talk to?" Lu Bowen was completely relieved now. "You still have a lot of influence. Nine million one hundred thousand, and he just said he didn't want it."

“He wants it too, and he has to get it. He’s not stupid. He’s offended the Japanese, he’s offended Fu Xiao’an, and he’s offended the 76th Division. He’s the only one left. It’s not worth risking not getting the money by fighting me.”

Actually, I'd love for them to have a fight.

Gu Yansheng raised his head and gave Lu Bowen a smile, "I still have cotton yarn here, more than enough for the 13,000 bales I give you."

"Where did you get this cotton yarn?" Lu Bowen was even more surprised than before. There shouldn't be any cotton yarn left in Shanghai, or even in Suzhou and Nanjing.

“I have too much cotton yarn.” Gu Yansheng took stock of it for him. “At the beginning of the year, when the Wang Jingwei faction came to Shanghai to forcibly requisition cotton yarn, the 30,000 bales prepared for the army are still sitting in the municipal government’s warehouse.”

"It hasn't been used yet?" Lu Bowen was taken aback.

"For whom?"

At the time, Zhou thought the new government would be established soon, but it still hasn't been established. The cotton yarn collected for making clothes for the army is just gathering dust now.

"Have you gone to see it? It's practically moldy by now."

"Whether it gets moldy or not, it's still cotton yarn."

Gu Yansheng was truly unafraid of the British forcing him to give it to him. If they did, he would have it. "I still have some that haven't gone moldy. Remember the prison? I still have thousands of workers helping me in prison."

Although Gu Yansheng hadn't been to the prison for a while, the people there had been there for a year, so the quality of their cotton yarn should be pretty good.

This is a revenue-generating matter, and the two section chiefs of the judicial department and the prison wardens below them should be keeping a close eye on it.

Actually, it doesn't matter if the quality is a little poor, since it's still called cotton yarn.

Moreover, because there are many workers, the output is also large.

"Sell it!" Lu Bowen's eyes lit up. "What Shanghai is lacking right now is cotton yarn. A bunch of out-of-town merchants are practically begging for it; they just need rice to cook."

With the concessions' actions this year, cotton yarn should be in short supply in Shanghai, Suzhou, and Nanjing, which will definitely fetch a high price.

"You reminded me."

Gu Yansheng picked up the phone and called Sassoon.

"Hey, I need your help."

"I'd be happy to, just say so."

"I want to exchange some cotton yarn with you."

“You still have cotton yarn?” Sassoon was also surprised.

"Yes, tens of thousands of packs, but they might not be in very good condition. They were produced at the beginning of the year, so there might be some mold or other issues. Could you please replace them with better ones?"

"How do we replace this moldy cotton yarn? The clothes made from it will smell bad and make us sick. Sigh, didn't the Japanese receive this batch of stockpiled cotton yarn? How did you manage to avoid it?"

"Let's not talk about it anymore. Don't you have target customers who urgently need the goods? If you disperse these cotton yarns and mix them with the ones in good condition, no one should notice, right?"

Sassoon immediately understood Gu Yansheng's idea and chuckled, "That's not impossible. You find someone to transport it to western Shanghai, and I'll send someone to pick it up. I won't charge you the handling fee, but you'll have to reimburse the transportation cost."

"no problem."

Easily resolved, Gu Yansheng put down the phone, looked at Lu Bowen and smiled, "Did you understand?"

Lu Bowen sneered, "Isn't it obvious? If you don't sell, you can only offer it as tribute to the Imperial Army, right?"

"The Imperial Army is in dire need of it. If the moldy cotton yarn could be made into bandages, that would be interesting."

Let Sassoon sell it; he doesn't care whether he offends the Japanese or not, but Gu Yansheng must not get involved.

"I've already called the warehouse, you can arrange a car to pick me up."

"Row."

Gu Yansheng made a phone call and gave a few instructions, then chatted with Lu Bowen for a while.

Ma Shiqi hurriedly went upstairs.

"Minister, I just received news that the 76th Division's men shot and killed Keswick, the British director of the Municipal Council, at the gate of the Municipal Council in the foreign concession."

(End of this chapter)