Prime Minister

Chapter 297, Section 296: [Watching the Sea]

In a courtyard deep within the shipyard, Xue Huai and Qiao Wangshan discussed various details of near-shore freight, while Sang Chengze listened quietly and attentively.

Over the course of 120 years since its founding, the Great Yan Kingdom's attitude toward opening up the seas has been in a constant state of flux.

As early as the reigns of Emperor Taizu and Emperor Taizong, the imperial court implemented a very strict maritime ban policy. This was because the borders were not peaceful at the beginning of the dynasty, and in order to prevent coastal people from secretly communicating with foreign countries, as well as because of the national policy of emphasizing agriculture and suppressing commerce, and because the imperial court needed to monopolize the trade of valuable goods such as spices and treasures, the construction of ships by the private sector was strictly prohibited.

When Emperor Gaozong ascended the throne, the situation had changed drastically. The political situation of the dynasty was stable, and private commerce was booming. The demand for overseas trade was constantly increasing. After several years of back-and-forth debate, Emperor Gaozong finally issued an edict to open more Maritime Trade Offices in Zhejiang, Fujian and Guangdong, allowing the government to manage maritime trade and permitting a very small number of private companies to become brokers.

In short, during the entire reign of Emperor Gaozong, the maritime trade of the Great Yan was barely worth mentioning. After all, the Great Yan was at the height of its power at that time, and the officials in the court did not care about such small amounts of silver. Moreover, they were more worried that once the maritime ban was completely lifted, the stability of the coast would be difficult to guarantee.

From the reign of Emperor Xuanzong to the present, for nearly sixty years, although the imperial court has never fully lifted the maritime ban, the number of brokers under the jurisdiction of the various maritime trade offices has been increasing.

"When it comes to the coastal merchant groups today, Zhejiang merchants, Fujian merchants and Guangdong merchants each have their own strengths, but among them, Fujian merchants are the most powerful."

Shen Bingwen looked around at everyone and slowly said, "As early as the reign of Emperor Taizong, Fujian merchants had already begun maritime smuggling trade. After decades of development and accumulation, they gradually formed a pattern of seven major families, with the Xu family of Zhangzhou and the Li family of Quanzhou at the head. Their trading partners ranged from Japan, Korea, and Ryukyu all the way to Southeast Asia. Today, they almost monopolize the raw silk and spice trade. In comparison, Zhejiang merchants' main trading partners are Japan and Ryukyu, while Guangdong merchants focus on Southeast Asia. Neither of them can compare with the strength of Fujian merchants."

Compared to others, Shen Bingwen was more knowledgeable about the situation of the coastal merchants of the Great Yan. This was because before Xue Huai took office in Yangzhou, he was planning the voyage of the Guangtai ship and had made a special trip to Hangzhou to visit several elders of the Zhejiang Chamber of Commerce to conduct a detailed investigation into the current state of maritime trade.

Later, due to the oppression of Xu Guanlan, Liu Fu and others, Shen Bingwen had to temporarily shelve his plans to go to sea, but now they have come in handy.

Upon hearing this, Qiao Wangshan pondered for a moment and said, "I've heard that the struggles between maritime merchants are exceptionally fierce?"

"Yes."

Shen Bingwen nodded, and said with a slightly solemn expression, "The dangers at sea far surpass those on land. Not to mention the high winds and turbulent waves that can change in an instant, the man-made disasters are even more shocking. More than twenty years ago, Huizhou merchants also ventured into maritime trade, but their fleet, built with a large sum of gold and silver, sank unexpectedly at sea. Their goods were looted, and all the sailors they had painstakingly trained perished. If it weren't for their deep-rooted foundation, this incident might have crippled them."

Upon hearing this, everyone's expressions turned serious.

Although the Great Yan Navy was not weak, its strength was limited to coastal defense and patrol. It was unable to effectively control the open seas. Once the merchant ships left the navy's patrol range, they not only had to guard against the threat of pirates, but also against their own people's sabotage. Therefore, there was a saying among the people: "Be a merchant near the sea, a pirate at sea."

At this moment, Sang Chengze asked in bewilderment, "Since the Salt Association is forming a fleet for near-sea freight and not to compete with the Grand Canal for short-term gains, it should not have any direct conflict of interest with the maritime merchants. Why are you all so worried?"

The group exchanged glances, and finally Qiao Wangshan said cryptically, "Young Master Sang, the interests at sea are also deeply intertwined, and this cannot be clearly defined by simply saying 'we'll keep to ourselves'."

After thinking it over carefully, Sang Chengze suddenly realized, "I understand now. Even if the Salt Association has no intention of interfering in the maritime trade, the merchants won't think that way. In their eyes, the Salt Association bringing dozens of brand-new ships into the sea is itself a disruption and challenge to the existing maritime trade order. They won't care what goods you're transporting; they'll only see you as a potential threat and an object that needs to be suppressed. This is a way of making an example of someone to deter others, thereby consolidating their monopoly position."

Qiao Wangshan nodded and said, "That's exactly right."

Although Sang Chengze guessed the reason, his expression became even more serious. He understood that for the Lianghuai Salt Association, the sea route seemed to be fraught with difficulties.

Thinking of this, he couldn't help but look at Xue Huai with worry.

"For now, there is no need to worry too much about the threat from maritime merchants. We are starting with the northern coastal route, which is under the supervision of the imperial navy. Maritime merchants will not dare to openly obstruct or scheme against us."

Xue Huai's calm and composed tone instantly eased the tense atmosphere in the hall. He smiled and said, "This shipping route is relatively short, and the frequency of strong winds and waves is far lower than that of the open sea. Moreover, it is not the core area of ​​influence of the major coastal merchant groups. Once the route is opened, you can mainly transport grain, salt, cloth, northern specialties, and handicrafts from the south. The demand for these goods is stable, the quantity is large, and they are not easily perishable. As far as I know, maritime merchants are not very interested in this type of business. As long as we do not actively compete with them for high-profit goods, the possibility of encountering their full-scale suppression in the early stages will be greatly reduced."

Qiao Wangshan echoed, "Your Excellency's insight is profound. What the North lacks is precisely the grain, cloth, porcelain, and so on from the South. These kinds of goods are produced in large quantities but have low profit margins, and the large merchant ships of the South disdain to do so. They are precisely the foundation upon which we can establish ourselves."

Xue Huai nodded and said, "This is what I wanted to tell you all: do not be overly ambitious, but be down-to-earth. For a long time to come, the Grand Canal will remain the mainstream of domestic freight transport, with coastal freight only as a supplement. Don't think that having your own fleet will allow you to bypass the Grand Canal authorities and the transport guilds; on the contrary, you must have a clear understanding of this." Everyone agreed. Huang Dezhong asked with some curiosity, "Your Excellency, with so many problems arising from the Grand Canal authorities this time, shouldn't the court push for reform of the Grand Canal system?"

Xue Huai picked up the teacup on the table without commenting. Qiao Wangshan immediately glared at Huang Dezhong and said, "Old Huang, don't ask questions that are not our business. How can we merchants have the right to interfere in important matters of the court?"

Huang Dezhong's heart skipped a beat, and he quickly smiled apologetically, "It's all my fault for being so talkative, please don't be offended, Your Excellency."

Xue Huai smiled and indicated that it was alright, continuing the previous topic: "The reason I asked you to repair your relationship with the Grand Canal is not to return you to the state of being oppressed and exploited as before, but to take advantage of the Grand Canal's inability to target the Salt Association in the short term to establish an efficient inland cargo transportation and distribution network to the ports. Once the fleet is ready and the shipping routes are successfully opened, Salt Association members will not only be able to reduce their own transportation costs, but also provide transportation capacity for other merchant groups in Jiangnan. Only by binding interests together can we form a united force."

Everyone was greatly encouraged by this, and Qiao Wangshan couldn't help but praise, "Your Excellency's vision and thoughtful consideration are truly remarkable. I cannot wait any longer."

The rest all echoed this sentiment.

Xue Huai shook his head and said, "Elder Qiao, you flatter me. I just told Chengze that I asked him to select a group of honest, reliable, and skilled sailors from the canal gangs to strengthen the fleet. In addition to recruiting boatmen and sailors, the Salt Association also needs to establish a complete and strict fleet management system, ensuring that everyone from the manager to the sailors obeys orders and that rewards and punishments are clear. Regarding this matter, I will seek help from General Xu of the Canal Army and ask him to select a group of reliable people from among the retired officers and soldiers of the Canal Army to be responsible for establishing the fleet management system and training the necessary guards for the fleet."

Everyone respectfully agreed.

Xue Huai and Shen Bingwen exchanged a glance, then Xue Huai said earnestly, “Gentlemen, the steps I have set for you are to establish yourselves in coastal waters through differentiated competition, to unite your forces through alliances of interests, and to forge your fleet with strict systems. However, I am unable to be in two places at once and cannot monitor the fleet's condition at all times. Therefore, whether this fleet can be forged into a formidable force ultimately depends on your own efforts. In other words, whether the Huaiyang merchants can gain a share of the market in the future depends entirely on how much effort you are willing to put in.”

Shen Bingwen immediately replied, "Thank you for your guidance, Your Excellency. Today, I would like to ask Your Excellency to clarify our rights and responsibilities to avoid future disputes."

As Xue Huai's future father-in-law and the vice president of the Salt Association, his statement at this moment was reasonable and justified, and Qiao Wangshan and others had no objections.

"it is good."

Xue Huai did not refuse and looked around at everyone, saying, "The Qiao and Shen families accounted for the largest share of the costs for the purchase and construction of the ships. Therefore, you two will be in charge of the fleet's operations and should draft detailed internal regulations as soon as possible. Huang and Wang, you two will be responsible for the fleet's external communications. Xu, you will be in charge of the fleet's internal supervision."

Everyone accepted the order.

Inspired by the solemn yet uplifting atmosphere, Sang Chengze suddenly remembered something and quickly asked, "Lord Xue, should we first apply to the Hangzhou Maritime Trade Office for a sea freight quota?"

Shen Bingwen smiled and said, "Young Master Sang, don't worry. The Director had already asked someone to talk to Ma Shun, the Eunuch in charge of the Maritime Trade Office, a month ago, and the ship licenses for the first batch of forty-five ships have been obtained."

Sang Chengze was immediately filled with admiration for Xue Huai. At this moment, he finally understood that Xue Huai had never placed his hopes on the reform of the canal transport system from the beginning, but rather used the salt and canal dispute to secure a new way out for the Lianghuai Salt Association.

Despite the praise and flattery from the crowd, Xue Huai remained calm, because he knew that the Salt Association fleet still needed a protective talisman from the imperial court, and now everything was ready except for the final push.

Whether this favorable wind will arrive smoothly depends on whether his mentor, Shen Wang, can achieve perfect harmony with him in the upcoming court power struggles.

After boarding a fast ship at the dock and returning to Yangzhou, Sang Chengze, carrying the business plan for the canal gang that Xue Huai had given him, excitedly returned to the branch headquarters to discuss it with Wang Kui, while Xue Huai went straight back to the Tongzhi official residence.

"Second Aunt is here?"

Xue Huai looked at Su Erniang, who had a respectful expression, and was slightly surprised.

After listening to Su Erniang relay Jiang Li's request, he remained silent for a moment, then nodded slightly and said, "Please tell Your Highness that I should do my duty as a host."

(End of this chapter)