The rise of a great power: starting with military industry
Chapter 45 Big Order
Chapter 45 Big Order
On the shooting range.
Rashid watched reluctantly as the soldiers closed the box and carried it away.
The gun had been tested on site and Rashid was satisfied.
I am very satisfied with the performance of the gun, and I am also very satisfied with the price of the gun and bullets.
Good quality and cheap!
"Mr. Al, Major Rashid, I think we should talk about this business next." Liu Tao said straight to the point.
Now that the guns have been tested, the next step is naturally to talk about business. Only when the business is done will the gun testing be meaningful.
If the deal is not done, then it will be useless no matter how much you praise the gun.
Al said, "This is not the place to discuss business. How about coming to my place?"
Liu Tao thought about it, felt it made sense, and nodded slightly.
After leaving the military camp, we soon returned to No. 25 Xiushui North Street.
At this time, it had already darkened and everyone was talking about business while eating.
"A pistol is $180, and the bullet is $0.5 per bullet. A rifle is $700, a machine gun is $2500, and the bullet is $0.7 per bullet. A heavy machine gun is $6000, and the ordinary bullet is $2 per bullet, and the special bullet is $30 per bullet. A heavy sniper rifle is $2, and the bullet is $100 per bullet." Al hesitated for a moment, "This price is acceptable, but we want to take a 10% commission for the order."
remuneration!?
Liu Tao laughed immediately.
It is said to be a reward, but in fact it is a kickback.
He was mentally prepared for this. After all, kickbacks are inevitable in the global arms market.
A 10% kickback is already very generous. Liu Tao once read in the news that the kickbacks of the neighboring Indian military trade were terrifying, so people never ask for the best but the most expensive!
"No problem!" Liu Tao agreed without hesitation, "As long as every sum of money arrives, I will pay you 10% of the reward!"
Al Rashid immediately laughed.
It seems that not every Chinese person is so rigid, there are still some people with flexible brains.
"Two thousand pistols, five thousand rifles, five hundred light machine guns, five hundred heavy machine guns, two hundred heavy sniper rifles, one hundred and twenty thousand pistol bullets, six million rifle and machine gun bullets, two million and two hundred and fifty thousand heavy machine gun bullets, twenty thousand sniper bullets, fifty thousand heavy machine gun special-seed bullets, and two thousand sniper special-seed bullets." Rashid said in a deep voice, "We require the fastest delivery, preferably in October, when one of our transport ships will return to our country from Japan, which will be safer."
Liu Tao's eyes flashed with excitement, and he nodded without hesitation and said, "No problem, but you must pay half of the deposit in advance, and the rest will be paid after the goods are on the ship!"
Then some more details were discussed.
When Liu Tao left No. 25 Xiushui North Street, it was already dark.
Although he was very tired after a busy day, Liu Tao's heart was filled with joy.
If this deal is successful, it will be a big order for Panshan Machinery Factory, and the total contract value will reach US$2129 million.
There were no buses at this late hour, so Liu Tao naturally would not leave on foot. Instead, he was taken to the dormitory area of the Fifth Ministry of Machine Building by the embassy driver.
Early the next morning, Liu Tao went to the Fifth Ministry of Machine Building to visit Wang Baoguo.
"What?" Wang Baoguo stood up suddenly after listening to Liu Tao's words. He could no longer sit still and asked in shock, "You and Iraq have already reached an agreement on cooperation. All that's left is to sign the contract?"
It only took one day, and Liu Tao accomplished it?
"Yes, now we need someone in the department who knows English and Arabic to draft order contracts, and help set up a bank account." Liu Tao shrugged.
Procurement contracts require three languages: Chinese, Arabic, and English. Liu Tao's English is limited to communication, but not enough to draft professional contracts. As for Arabic, Liu Tao is learning it, but he hasn't mastered it yet.
As for the account, Panshan Machinery Factory is not without a bank account, but because China's foreign exchange management is now very strict, even some large state-owned factories are not qualified to accept and retain foreign exchange.
If you want to use foreign exchange, you have to apply to your superior. As for whether your superior will approve it or how much he will approve, you don’t know.
It is precisely because of this that Al and Rashid feel relieved, because in the end it all has to be a public-to-public transaction, otherwise it would be easy to get all the money back through official channels.
In this era, there is no need to worry about being cheated when doing business with the Chinese, because when it comes to foreign exchange, you can get it back as soon as you find out.
"Boss, this order is worth 2467 million US dollars, which is definitely a large order." Liu Tao said, "And this is just the first order. Who knows, if the customer is satisfied, they may place additional orders in the future."
Wang Baoguo felt dizzy. He was overwhelmed by Liu Tao's large order.
"Wait a moment, I'll call other leaders." Wang Baoguo paused, motioned Liu Tao to sit down first, and then picked up the phone.
After making several phone calls in succession, Wang Baoguo took Liu Tao out of the office and went to a conference room.
Then, leaders came one by one.
Liu Tao knew some of the leaders, but not others, a total of seven leaders including Wang Baoguo.
"Lao Wang, was what you said on the phone true?" Zhang Zhen asked hurriedly, his eyes full of anticipation.
It is embarrassing to say that since the country stopped providing free military aid to other countries, it has not completed a single military equipment export order so far.
Talking about money hurts feelings.
Now Wang Baoguo actually got an arms order worth 2467 million US dollars over the phone.
"Lao Zhang, this is Liu Tao, the director of Yunnan Panshan Machinery Factory. His parents both work in our Fifth Machinery Department, and he was the one who got the order." Wang Baoguo pointed at Liu Tao, "He knows the most about this matter. Why not let Comrade Liu Tao tell everyone about it."
"Is it the kid from Old Liu's family? He has grown up so fast. If Old Liu were still alive, he would definitely be pleased to see his grandson doing so well." Zhang Zhen glanced at Liu Tao and said with emotion.
Others spoke up one after another. They were all from the same unit and would see each other every day.
They are not strangers.
"Liu Tao, tell me." Zhang Zhen looked at Liu Tao.
Liu Tao explained the whole story, and then emphasized: "Leaders, this is only the first order. If the customer is satisfied, we will place additional orders."
You know, the Iraqi army is now known as the third largest military power in the world, with a military force of over one million. Not to mention replacing all of them, even if only one-tenth of them are replaced, it would be a huge order.
Not to mention, next year is when the Iran-Iraq War breaks out.
In war, the consumption of weapons and ammunition is extremely alarming, and that is the time to make a fortune.
Now it is in the early stage of market development and the money earned is just a small amount.
Liu Tao hopes to complete the deal as soon as possible to lay the foundation for subsequent transactions.
However, all of this requires the approval of the Fifth Ministry of Machine Building. Otherwise, the approval of the Yunnan Provincial Defense Management Office alone will be useless, because in order to export, the weapons and equipment must be transported to seaports, and Yunnan Province lacks seaports.
Besides, the foreign exchange account of Panshan Machinery Factory is not eligible for foreign exchange transactions, and even the Yunnan Provincial Defense Management Office may not be qualified.
(End of this chapter)
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