The rise of a great power: starting with military industry

Chapter 142: Tacit Understanding between the Two Parties (asking for monthly tickets)

The two-day weekend helped Liu Tao recover from his fatigue.

On Monday, Liu Tao came to the Fifth Ministry of Machine Building.

In Liu Zhenbang's office, the two were making tea. They had to wait in line for at least an hour to see Wang Baoguo.

The two chatted about Afghanistan.

Since Liu Tao made a suggestion last year, the two parties have reached a tacit understanding and reached a cooperation.

One side provides the money and the other side provides the weapons.

The Americans spent a lot of money and bought millions of Type 63 automatic rifles, more than 54 Type 6 pistols, and a large number of bullets and grenades in less than a year. The total order exceeded US$ million.

These weapons and ammunition did not need to be specially produced; they could be directly transported from storage and continuously transported overland into the hands of various guerrilla forces.

This is much more convenient and more cost-effective than the Americans manufacturing and transporting them from Europe or abroad.

The Americans are willing to spend any amount of money to prevent the polar bear from moving further south to open up a passage to the Indian Ocean and increase its influence in the Middle East, thereby affecting energy security and causing the collapse of the newly established petrodollar system.

Even in Afghanistan, Stinger air defense missiles have appeared.

"This time, the Americans have ordered millions of Type 63 automatic rifles and a large amount of bullets, worth more than $4 million." Liu Zhenbang lowered his voice.

As the head of the foreign trade working group, Liu Zhenbang was responsible for coordinating the transportation of weapons and ammunition: "We even spent $5 million to purchase a batch of weapons for Pakistan."

"Americans are so rich!" Liu Tao couldn't help but admire.

You should know that since the second half of last year, the second oil crisis broke out and oil prices soared, which severely hit the US economy, aggravated the US trade deficit, deepened the stagflation trend, and the number of corporate bankruptcies increased sharply, plunging the United States into an economic crisis.

But even in the face of an economic crisis, Americans are still willing to spend huge sums of money to prevent polar bears from moving south.

But it is normal to think about it. Since the 70s, the Soviet Union has been attacking and the United States has been defending in the bipolar competition. If the polar bear is allowed to open up a passage to the south to the Indian Ocean, its influence will quickly radiate to the South Asian subcontinent, the Middle East, and then to most of Africa. The polar bear can then firmly control the oil in its hands. For Europe and the United States, this is a disaster like the sky falling.

As long as they can stop the polar bears from moving south, the Americans will not hesitate to spend even a billion dollars, even if it's ten times the amount.

But it's also good this way. Both parties have a tacit understanding. One side provides the money and the other side provides the weapons. China just takes this opportunity to clear out its inventory.

You should know that in those years, more than six million Type 63 automatic rifles were manufactured, and more than 54 million Type 3500 pistols were also produced.

Whether it is the Type 63 automatic rifle or the Type 54 pistol, we have as many as you want.

Even if the existing ones are sold out, the military factories can start production immediately if there are orders.

"With this money, the reform and development of the third-line factories will be much smoother," said Liu Tao.

Liu Zhenbang also agreed: "Yes, if there is no money, everyone will be in a mess."

Discussions on the reform and development of "third-line factories" began last year.

After all, now that the international situation has warmed up, coupled with the "Red Dragon's Roar" in February last year, the possibility of war has been greatly reduced. In addition, the country has proposed reform and opening up and a development plan centered on economic construction, and small and medium-sized military factories have instantly become a burden. These military factories can only produce various weapons and ammunition. Without war, they have no production tasks and can only survive on state subsidies. They can't even be self-sufficient.

Since May last year, the Third Line military factories have been facing hard times.

As a pilot province for the reform and development of third-line factories, Yunnan Province was the first to start.

Panshan Machinery Factory was the first pilot factory. With the help of the rapid development of Panshan Machinery Factory, the Yunnan Provincial Defense Management Office continuously assigned some third-line factories to Panshan Machinery Factory. In addition, driven by Panshan Machinery Factory, although provinces across the country were troubled by third-line factories, Yunnan Province was the first to solve the problem.

But Yunnan Province is not replicable, because everyone knows that there is no Panshan Machinery Factory in other provinces!

The Panshan Machinery Factory alone absorbed more than half of the employees of the third-line military factories in Yunnan Province. Some of them received orders from the Panshan Machinery Factory, thus solving the problems of the third-line factories.

Regarding the third-line factories in Guizhou and Guangxi provinces, the Fifth Ministry of Machine Building is now discussing with the National Defense Management Offices of the two provinces and Panshan Machinery Factory to transfer some of the third-line military factories to Panshan Machinery Factory.

But you have to know that Panshan Machinery Factory alone cannot absorb the employees of the third-line military factories in the entire Southwest, let alone the entire country.

After many rounds of meetings and discussions, a consensus has been reached on the military-to-civilian conversion of the Third Line Factories.

The higher-ups want to push the third-line factories to convert from military to civilian use, allowing them to enter the civilian industrial field. While achieving self-sufficiency, they should retain a certain level of military production capacity in case of future wars.

But that's easier said than done.

After all, for a factory that only produces weapons and ammunition, without additional investment, it is doubtful whether it can produce any civilian products. Even if it produces them, whether it can be sold is still a question, not to mention that there are more than 200 factories with such problems across the country!

This refers to military factories. If it refers to all third-line factories, the number will increase tenfold!
Although more than 200 small and medium-sized military factories are under the jurisdiction of the provincial defense management offices, the actual reform and development issues need to be resolved by the Fifth Ministry of Machine Building.

Without money, it would be extremely difficult!
But since last year, the Fifth Ministry of Machine Building has had money.

Even if you just make a profit from the price difference, you can still make a lot of money.

He even suspected that the settlement between the Fifth Ministry of Machine Building and him was 1 RMB for every US dollar, and perhaps the settlement between the Fifth Ministry of Machine Building and the bank was 1.75 RMB for every US dollar, or even more.

As for orders for 54 pistols, 56 gun bullets and the like, the profit will only be more, not less.

Money makes things easier. At the very least, we can allocate some money to help the third-line factories tide over the difficulties.

Or settle the workers' debts so that the third-line factories can go into battle with less burden.

Liu Tao is also trying to find a solution to the reform and development issues of the third-line factories, because he knows that the employees of those third-line military factories are worthy of respect. They are saving the country and developing the country through military industry. Now that they are facing the changes of the times, they should not turn a blind eye and turn a deaf ear. Even if their ability is limited, they should try their best to solve the problems. If one more third-line military factory is solved, the relevant departments will have more strength to help other third-line military factories.

This is why, when Wang Tiezhu approached him, he agreed without hesitation, even if it meant paying the workers' wages and material fees owed by the original factory.

"Are you ready to receive distinguished guests tomorrow?" Liu Zhenbang brought up the business.

This is also the important purpose of Liu Tao's return to Beijing this time, that is, to welcome distinguished guests from Saudi Arabia to China.

Liu Tao waited for a long time and finally the distinguished guest came!
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(End of this chapter)