Bob Board took the paper from the outstretched hand and quickly read it. Finishing, he looked up, intrigued. This was serious stuff.
Unable to control his surprise at what seemed a firm order for millions of metric tons of his product, Mr. Park’s jaw dropped open for a moment before he recovered his composure. “How soon?”
“We would like you, Mr. Park,” said Qiang, “to begin delivery within 60 days, and also would like to ensure you do not lose additional business by moving all your capacity to us. Have you enough capacity to deliver this entire order within 60 months? That is our schedule. Or do you need to build additional capacity to ensure against the loss of your current customers? And, if so, can you bring that new capacity online quickly enough to fill our needs and those of your current customers?”
Without waiting for Park’s answer, Qiang turned to the head of BNSF. “Mr. Board? Can you lay that track within five years?”
“Yes,” replied Board. He looked at the Korean, who obviously was running numbers and thinking high-level manufacturing and delivery logistics. Board looked back to Fang, a skeptical look on his face, and then over at Minister Qiang. “If this is real, and if you can indeed get the rail – and the timber, though we would prefer concrete cross-ties. If our engineers can start within thirty days and you have enough workers. Have you?”
“Yes,” replied Qiang. “We are organizing and planning right now the necessary timbering and concrete to provide you all the resources you will need for ties, stations, crossings, etc. Regarding the rail…” He turned to Park.
“Sir?” Qiang queried.
The automakers watched and listened, intrigued.
Park thought a moment and replied, “We can deliver this within your timeframe. We have unused capacity in the current economic climate and can build some additional if needed, but not so much it would be a problem once this order has been completed. Will there be additional orders in the future?”
“Yes,” Qiang replied. “Please give us a good price for this if you would, and the necessary deposit. Please do not have the deposit exceed 15% of the project. That should be enough money to get you going, yes? Should you need to contract for additional raw material, you will get them from us at then-current market prices. Please allow this in your calculations. We are not going to bid this competitively as it takes too much time, but we would like to ensure an honest business arrangement based on this price. Do not bankrupt yourselves, but do not take advantage, either. Thank you.”
Qiang turned back to Board as Park began thinking.
“Mr. Board? We would like you to bring as many of your people – and their families – as you can to do this work. We would not ask your people to come alone. We wish happy, productive workers. You just read the arrangement made with the other company. We are making the same offer to you. We are hiring, of course, many Chinese on this project. But we want as many experienced railroad workers from America as we can find – and as you can bring. We also ask that you subcontract all concrete work – likely all local mineral extraction, mixing, delivery – to an American company you identify to whom we can make the same offer. ” He paused and looked at Premier Fang.
Looking at the Americans in the room, Fang said calmly, “We need – the world needs – America moving forward again, and the salaries we pay – and the taxes your government takes – are required to pay-down your debt and get America moving. We will be paying in dollars and using your country’s tax tables to withhold the correct amounts, which we will deliver to your tax authorities. The world needs a free-market, innovative and producing America, perhaps now more than ever. You cannot be so when you lack jobs. We want to put you to work.”
Mr. Board quietly considered what Fang said.
Qiang watched Board think for a long minute and then asked, “Mr. Board? What is your preferred deposit to begin planning and executing this project? And when can I expect to know how many of your team will be coming with you? I will need to arrange additional workers for your crew if you cannot supply enough.”
Board decided to see if he was really serious. “I need a deposit of $50,000,000. Once I have that I’ll begin meeting with my teams. I can provide a rough estimate within 24 hours of workers, families to be moved, and a very high-level initial schedule. Costs will be rough because you want the estimate so quickly. We will need to re-examine the schedule and budget in detail as soon as we can, but if you want this rail built in the stated timeframe, we’ll need to have men on-site within weeks. Are you paying men at Chinese scales or American?”
“We are asking for your sole-source bid, Mr. Board, and we want you to make your normal profit, plus a markup for the location. We will be adding bonuses for making the schedule to which we will both agree. We will pay your company for the entire project. We are hiring your company; you pay your workers. We would like you to estimate it at the same rates you would if you were building it in America – as quickly as possible. There will be reviews of these estimates as we progress to ensure you are profiting from the work. We have no interest in your not making a profit. I am sure your people will find that they will be making relatively far more than in America, given our much lower cost-of-living. They may lack some amenities, but we think that the housing and schooling and work we are providing will make up for those things. The agreement will be for five years at a minimum. We will extend it should we find we need additional track mileage, and for maintenance workers, as well. You will hire Americans at standard labor rates. If you wish to lower your costs through foreign low-cost labor rather than bringing Americans with you, we will immediately go to your competitors in America. Is that understood?” Board nodded and began thinking logistics, costs and schedules.
Qiang turned back to the Korean steel man. “Mr. Park?” he asked.
Park seemed to complete his mental calculations, nodded, wrote two numbers on the card, a project estimated total and a deposit amount to begin planning and working, and handed it to the Interior Minister. Qiang examined the card and nodded. It was a good number, just about what he had expected. A bit higher, but not enough to quibble over.
“What is the interest of China in America paying-down its debt?” Board asked.
Ignoring him for the moment, Qiang picked up his briefcase and placed it on the table. He unlatched it, opened it and removed a large business checkbook. Turning to the first page of checks in the book, Qiang wrote a check and handed it to Park. “Is this the deposit amount you just told me?”
“Yes,” said the dumbstruck man.
“You will notice it is drawn on the Korea Exchange Bank. If you would like, you may check with them now to assure yourself that the funds are on-deposit for this check.”
Park looked at Qiang, then the premier, and then at the others assembled, nodded, and placed the check in the inside breast pocket of his suit coat. “I have no reason to mistrust you for something so large and so public. One assumes you have something even larger in mind, and that being dishonest with me will not help you achieve your goal, whatever it may be.”
“Thank you, Sir,” said the minister, nodding.
Jackson had worked railroads in college and understood something of that industry. He looked at Qiang and asked, “Minister, ten thousand kilometers of right-of-way would seem to require quite a fleet of trucks for the movement of men and supplies.”
“Yes, Mr. Jackson, and if you would be so good as to begin trusting me and filling-out the cards requested, we will get to that in a moment. We also will need quite a bit of heavy construction equipment – bulldozers, loaders, scrapers, dump trucks, etc. We are meeting with Caterpillar and Deere tomorrow morning. If you also would like to attend that meeting – we know your company also produces some of those items, as well as long-haul trucks we will need to transport supplies for building and servicing the towns we will create, you will be welcomed.”
Jackson began writing on his card.
Qiang