Father of France

Chapter 165 Show Your Fist

“Do you know what you’re talking about? That’s a huge number.” Ava Gardner felt that it wasn’t her who was sick, but this man.

“Of course I know, but my stance will not change.” Coman’s expression remained unchanged. One billion dollars represented one-third of France’s share in the U.S. Marshall Plan.

The total amount of US aid during the War of Resistance against Japan was still more than that. If it were given to Chiang Kai-shek now, his army might have been able to hold out for another year, but it wouldn't change the final outcome.

But what good is knowing? The oil consumption needs of 40 million people in France are far more important than his personal billion-dollar profit.

Even if he agreed, Dachanliu wouldn't agree, nor would George Pidul.

At most, the oil extraction companies might give the US some technology shares. But when the oil is extracted, it still has to meet France's needs; that's already the biggest concession they can make.

As a French soldier, Koeman prioritizes French interests above all else and has no bias towards any country other than France.

He felt that Eastern handicrafts could help France enhance the prestige of its own handicrafts, so he sent Gu Qing to find people there.

Now he feels that France needs this oil well more, and a billion dollars is worthless in his eyes. There is no reason why; soldiers always have to have a stance.

To stop Ava Gardner from dwelling on the issue, Koeman pulled the woman into his arms. "In America, you're just an unknown actress, but in France, you can become another DuPont in this country. Is there even a choice? It's just an oil well, and half of Africa is in the hands of the French army. Your loyalty now is for a greater reward in the future."

Despite his unprecedented act of noble character, Coleman also realized one thing: drug trafficking was truly a low-class, unsavory activity. Martin had worked hard for several months, carefully saving up only $50 million, enough to build an oil company valued at a billion dollars from a single oil well.

Therefore, opium poppies are something that should not be touched. If a country is even concerned about such petty gains, that country is probably nearing its end.

Preserving ownership of the oil well also plays a significant role in maintaining the franc's weak exchange rate. The essence of exchange rates is not an external issue, but rather an external characteristic exhibited by the institutional arrangements for the distribution of internal benefits.

There are two extremes here: one extreme is that the distribution of benefits is heavily biased towards workers and disadvantageous to asset owners, in which case asset owners will tend to transfer their assets abroad.

International capital is even less willing to enter, resulting in capital outflows exceeding capital inflows in the foreign exchange market, which in turn leads to the depreciation of the local currency.

If the distribution of benefits heavily favors asset holders, domestic capital will be unwilling to flow out, while international capital will eagerly enter to share in this favorable distribution of benefits. In this case, the inflow of international capital will exceed the outflow of domestic capital, ultimately resulting in the appreciation of the local currency.

Both extremes will hinder economic development. The former leads to capital outflow and weakens the foundation of economic development, while the latter dampens labor enthusiasm, reduces social consumption capacity, and makes growth unsustainable.

Since the franc currently lacks an anchor, any large commodity would be advantageous to the franc.

Although the gold standard in the United States under the Bretton Woods system negated the pricing power of the pound for commodities, it does not mean that commodity pricing had no effect.

Petrodollars are a form of commodity pricing, and France must now ensure exchange rate stability. Only by preventing large fluctuations in the exchange rate and maintaining a fixed exchange rate can French products gain strong competitiveness in the world and successfully enter the markets of more countries. Meanwhile, domestic prices in France are stable, the economy is booming, and the overall situation is very promising.

France is currently under significant pressure from the US dollar, and the franc must increase its stability. This dependence on the dollar stems from a dispute between Britain and France before the Great Depression. Ultimately, the US suggested that France retain a portion of its pound sterling reserves, while the other portion would be exchanged for gold in the London market by the Federal Reserve Bank of New York and the Bank of England, with the US committing to investment.

There are only a few conditions: France's future foreign exchange reserves must increase by shifting from pounds sterling to dollars.

When the representative of Standard Oil of New Jersey arrived in Saigon, Coman was making terms with a traditional Chinese medicine practitioner from Fujian: "Once we get to North Africa, I will invest in building a factory for you. As long as your formula is effective, the whole of Africa will benefit from your products in the future. There is only one condition: leave Saigon immediately."

After Gu Qing gave him a few bottles of loquat syrup, Coman became interested in Saigon's traditional Chinese medicine. He never expected that these Southeast Asian Chinese immigrants would have hidden talents among them.

Since that's the case, it must play a greater role. More than anything else, Coman wanted to know if wind essential oil existed.

The reason, of course, was that this was of great use to the French army, whose colonies in Africa, especially French Equatorial Africa, faced extremely harsh environments. Although advancements in modern medicine meant that Europeans no longer faced the same life-threatening risks when venturing into Africa as before, the tropical rainforest environment was still unbearable.

The effects of wind essential oils are particularly well-suited to the African environment. In the 21st century, its main export destinations were Southeast Asia and tropical regions. As for the export volume, it's best not to mention it.

As for ethical issues such as intellectual property rights, Coman didn't steal it, and the drug doesn't belong to anyone.

He only needs to respect the ownership of the Chinese medicine practitioners on the embankment in front of him, which is to say, respecting intellectual property rights, since they have the formula.

"Am I dreaming?" The traditional Chinese medicine doctor named Li Ji still felt like he was dreaming. He never expected that a Frenchman would suddenly appear and say that the prescription he had was valuable and that he wanted to invest in building a factory. What was the difference between this and finding gold on the street?
"Of course not." Coman's attitude was absolutely mild. He didn't care about the profits from medicated oils, and he had no intention of forcibly taking them from a traditional Chinese medicine practitioner.

However, as a French soldier, he had to consider his comrades in equatorial Africa.

If Li Ji, this traditional Chinese medicine practitioner, were to make a name for himself in the future, he wouldn't be jealous of him.

As Koeman shifted his focus from promoting African cuisine with Chinese food to the adaptation of French troops in Africa, representatives from Standard Oil of New Jersey and Kerr-McGee had already approached Ava Gardner.

Upon seeing Ava Gardner's face, the two representatives' eyes flashed with amazement, and they couldn't help but compliment her, "Ms. Ava is the most beautiful woman I have ever seen. Many Hollywood stars are not as beautiful as you."

“I have indeed acted in a few movies.” Ava Gardner said with an air of self-deprecation. Her striking appearance, which was quite strong for a woman, caught the attention of the representatives from both companies.

However, while people were stunned by Ava Gardner's beauty, this factor became negligible when it came to actual conversation.

An oil well producing ten million tons a year could bring in any kind of profit that no woman could resist. Not to mention MGM actresses, even the entire box office of an MGM movie wouldn't be worth that much.

Holt loosened his tie, his fingertips tracing the lines of the negotiating table, seemingly a little overwhelmed by the Saigon heat, and went straight to the point, "According to preliminary forecasts, the extraction cost per barrel of oil is 22 percent higher than in the Persian Gulf. This premium doesn't make sense in the current market. Not to mention, France doesn't even have the technology for marine exploration yet."

Eva Gardner stirred her black coffee with a silver spoon, speaking calmly. "The oil in the Persian Gulf is far from the United States. How do you calculate the transportation costs? Meanwhile, the Texas oil fields have been producing oil for years. This is a new well. The French are selling not just oil, but the certainty honed by time. Even the potential of the nearby waters. The French agreeing to take a stake is already a huge concession. In fact, from a macro perspective, the French government is unwilling to give up even one percent of its shares."

“Ms. Ava, you are American,” Holt couldn’t help but remind her. Although using nationalistic sentiments to blackmail the other party was not something to be proud of in negotiations, he just wanted to say it.

“Mr. Holt, this is a French colony. Whether I am American or not is irrelevant to this matter.”

Ava Gardner had to remind her to face reality: was she an American, and what role could she play in the oil well's location in the French colony? How could an oil well possibly end up on American soil?

Holt opened his mouth, then reiterated his terms: "Based on the standard valuation plus an 18% premium, plus a dual-chairmanship for the technology-sharing committee. France isn't losing out."

He paused for a moment, trying to convey each word accurately, "But Standard Oil New Jersey wants joint operating rights for a new exploration area in the nearby waters. Ms. Ava, you need to know the location of this well. The United States can acknowledge France's interests, but it can also choose not to. From an international law perspective, a location 100 kilometers from land doesn't mean anything. And the world's oceans are currently in the hands of the U.S. Navy."

"How lively." Koman appeared in his military uniform, sat down brazenly next to Ava Gardner, and looked at her with an unfriendly tone, "Are you bullying my woman?"

“Sir, please be serious. This is a business negotiation.” Holt was surprised by the sudden appearance of Coleman, but that was all.

Whenever he thought about the city atop the mountain's status in this world, he couldn't help but puff out his chest with pride.

“Successful businessmen cannot escape politics. I’ve heard you mention the U.S. Navy just now.” Koeman bluntly accused the other party of double standards. “This oil well involves France’s energy security and the energy consumption of 40 million French people. We’re only talking to you because of the unity of our allies. If anyone else had spoken like that, I would have kicked them out long ago.”

This American even put on airs in front of Coman, saying that no matter how capable Standard Oil of New Jersey is, it cannot ignore France's energy security strategy.

(End of this chapter)