Rise of the Argentine Empire

At least three hundred people attended the meeting. Most of them were the backbone of Argentina, including some political figures, heads of the country's three major steel plants, and some investors. The largest group, however, consisted of reporters from major newspapers—this was big news.

Saint Hilaire appeared confident, though the atmosphere wasn't particularly enthusiastic. He began his speech directly, and the room quieted down.

"Welcome, everyone, to Argentina's first Steel Fortune Conference. Today, we gather to celebrate and cheer for our steel dreams!

Grain and steel are the two most important raw materials. Grain ensures survival, while steel enables a good life."

Saint Hilaire quoted a statement as his opening, capturing everyone's attention and transforming into a dream mentor. However, the atmosphere remained lukewarm.

"Actually, as you all know, the recent establishment of the Argentine Import and Export Trade Association marks the reopening of our country's trade. By lobbying the parliament,

We, Argentina, are an agricultural nation. Compared to industrialized nations, the competitive strength is vastly different, like a child competing against an adult. Our nation's nascent industries struggle to compete equally with similar industries in industrialized countries, so we must lower export tariffs."

Saint Hilaire didn't forget to promote the purpose of tariff reform, mentioning it again in passing, referring to the infant industry argument.

"Now, let me tell you that last year's steel production was 400,000 tons, while imports totaled 200,000 tons, mostly from Brazil. In contrast, the world leader, the United States, produced 90 million tons—more than 20 times our output. This is why our country needs to protect its small steel industry."

Saint Hilaire had his assistant unfold a large chart displaying the growth data of various industrialized countries in the six years since World War II. Argentina wasn't even on the list. Besides several European countries, Japan, the United States, Brazil, Canada, and others all produced over 1.5 million tons.

This made the Argentinians present, who prided themselves on being a major South American power, lose face. Particularly, Perón's representative's face darkened. Others also looked displeased; the gap seemed quite significant.

"Steel is the fundamental raw material for industrial development. Almost all machinery and equipment are made of steel, and almost all daily necessities also require steel. Without high steel production, industrial development is impossible."

Several steel plant heads, including representatives from the Ministry of Industry and Perón, expressed their agreement. Perón himself supported industrialization, but due to inherent shortcomings and poor implementation, the First Five-Year Plan didn't go well. In recent years, the rapidly developing sectors have been light industries like textiles, with much of the equipment imported, such as telephone lines from General Electric.

"The steel industry is the core of the economy, the lifeblood of the nation, and the material guarantee for national survival and development. It's the 'grain' of industry, the most used metal by mankind, with wide applications in all areas of social production and life. It's an indispensable strategic basic industrial product.

The industrial progress of the United States, Britain, France, the Soviet Union, Germany, and Japan all started with investments in steel plants. Without steel, there are no other industrial products, no tall buildings, no guns, cannons, vehicles, or ships."

He displayed charts showing the steel growth data of several major countries from the 19th century, highlighting key milestone years.

Saint Hilaire wasn't exaggerating. The rise of all modern industrialized nations essentially began with investments in steel.

After World War II, an East Asian nation emerged as a global steel giant—South Korea. The funds for building its steel plants came from 300 million US dollars in war reparations from Japan.

This led to the establishment of the Pohang Iron and Steel Company (POSCO) and the Yangguang Steel Plant. South Korea's true emergence as a major economic power began with the first blast furnace at POSCO.

POSCO's first blast furnace had a capacity of 1 million tons and took five years (1968-1973) to build. Saint Hilaire's goal was to build three large blast furnaces and five converters, along with other supporting facilities, in three to five years, creating a large steel conglomerate with an annual output of 5 million tons. This was a long-term development goal, ambitious in scope.

"I wonder if anyone has read the book 'How the Steel Was Tempered.' I won't discuss the book today, but simply draw inspiration from it."

"This novel tells people, through the protagonist's growth path, that only when a person connects their pursuits with the interests of the nation and its people can they create miracles and grow into a steel warrior."

The people present didn't know why Saint Hilaire mentioned this book, and they were somewhat confused. Most hadn't read it; it was written by a Soviet author.

"So, I'm focusing on steel plants, which represent our national interests, and are actually highly aligned with the interests of everyone present. Why do I say this? Only when the country is strong can its people be prosperous. Does everyone agree with this statement?"

The people present thought about it secretly and agreed, but no one answered. Saint Hilaire continued to speak eloquently, and even his planted supporters didn't need to speak up, as Saint Hilaire was hitting his stride.

"In my opinion, the steel industry is the most important basic industry, the foundation for the development of all other industries. As everyone knows, Argentina is actually an agricultural country, but with steel, we can become an industrial nation…"

Saint Hilaire continued to tout the importance of steel, linking steel development with national development, making the Radical Civic Union and military figures feel that this young man, though prone to exaggeration, was still very patriotic.

"Let me briefly introduce the four major parts of steel production: mining, ironmaking, steelmaking, and steel rolling…"

Naming it the LD converter after the initials of the city where it was invented. This was a huge contribution of VOEST-ALPINE to the progress of the metallurgical industry, and the converter became VOEST-ALPINE's sharpest weapon. This was Saint Hilaire's confidence, as this technology would dominate the steel industry for the next sixty to seventy years and was very advanced.

As for building blast furnaces, the technology was already mature. The difficulty lay in the equipment and the construction period, but that could also be resolved.

"Now, we finally come to the purpose of today's meeting. We are cooperating with two of the most advanced steel plants in Europe, which can provide production technology and equipment to everyone present. They are now preparing to return home to help with the construction of Argentina's steel industry. This is a great step forward…"

Saint Hilaire suddenly stood up, tears welling in his eyes, and vigorously waved his fist, his voice somewhat hoarse.

"I believe we will soon be able to build more advanced steel plants, far surpassing the Brazilians, and become a world-class steel power, realizing Argentina's national revival…"

Saint Hilaire was addressing these words to the three major steel plants. He wanted to start a steel plant arms race and expand Argentina's steel production.

"Currently, a 500,000-ton steel plant requires an investment of 5 million US dollars. After mass production, the selling price of one ton of steel is 220 US dollars, and with a profit margin of 30%, the cost can be recovered in two years, and everything after that is pure profit…"

After so much groundwork, Saint Hilaire finally revealed his fangs, aiming to raise funds to build steel plants and embrace Argentina's future.

Saint Hilaire was painting a rosy picture without informing the people present of the risks. He was just exaggerating wildly, using some of the traditional sales techniques of later generations, and frantically promoting his idea, with the air of a con man.

The atmosphere suddenly became狂热, and everyone was somewhat癫狂. If the profits from steel were so high, why bother farming? Only a few people could calmly think of the difficulties behind it.

"We offer three cooperation methods: first, investing in bonds, investing in the La Plata Steel Plant; second, we provide resources and technology for you to build your own factories; third, we only provide channels for you to cooperate directly… Investing in steel plants is investing in our country's future…"

This speech quickly reached its climax. Saint Hilaire spoke for over an hour on stage, and the atmosphere exploded. Everyone became irrational, eager to make a fortune. This was a golden opportunity, and even if they didn't understand business management, they could invest in bonds.

This allowed Saint Hilaire to see the simple Argentinian tycoons who had been exploited by the Perón government for too long, and he became merciless, like a devil tempting them to take action.

Saint Hérse immediately dispatched personnel to negotiate cooperation, backed by the National Tax Bureau, the Stock Exchange, and banks, as well as the reputation of Raine Military Industries, the Radical Party, and the military, clearly indicating that this was a genuine investment in the steel project.

Saint Hérse underwrote a total of 18.76 million US dollars in corporate bonds, far exceeding the target, and also sold 7 steel plants and 6 cooperation opportunities.

This steel wealth conference was a complete success, marking the first large-scale financial event in Argentine history, and it also allowed Saint Hérse to see the terrifying private wealth of Argentina; as long as it wasn't plundered, they had plenty of idle funds.

The dignitaries present, like Arturo and others, all had one thought in their minds:

"This kid is a talent, too good at boasting, we can try to win him over; who knows, he might be another spicy skin?"

......

With the success of this conference, the banks were also persuaded, and funds were in place to immediately begin building their own steel plant. A telegram was sent to the rolling mill and contact was made with the Port of La Plata to ensure the construction of the ore transport terminal was completed, and mineral reserves were stockpiled in advance.

Saint Hérse was determined to develop the Argentine steel industry, and two negotiations with Europe had reached new goals.

After the completion of the Prarie International negotiations, he chartered a freighter to transport the necessary production facilities from Austria, and the Austrian United Steel Plant also sent a luxurious team.

The first batch of deposit had already been wired into the Austrian's account. The Austrians now possessed the world's most advanced steel technology.

They had a new invention for steel converters, and Little Knicks had caught up with a good time. Moreover, Austrian United Steel was also eager to monetize these technologies, as Austria needed funds to rebuild Vienna's factories, and American aid was not enough.

Because Austria was occupied by Germany during World War II, after the Soviets entered Vienna, they first dismantled everything that could be dismantled in the Soviet-occupied zone and transported it back to their country. Then, the Soviet Union demanded that Austria, as a "defeated country," pay the Soviet Union 250 million US dollars in reparations, to be paid in kind within 6 years.

The Americans were certainly unwilling to do so. The Soviet Union was trying every means to stay in Eastern Austria and turn it into a Soviet satellite state.

Currently, the Soviet Union has 600,000 troops stationed in Eastern Austria, posing a great pressure on the West, but the situation is improving. The Americans disagree with the Soviets' views, especially Stalin's strong stance. Western and Central Europe could never fall into the hands of the Soviets, even if the United States suffered a huge defeat in Asia.

Many factories in Austria are being rebuilt and are now working hard to restore production. The Viennese people expressed great appreciation for the friendly hand extended by the Argentinians, and Prarie International had also contacted Raine Military Industries, which secretly went to West Germany.

Therefore, progress in Austria was relatively smooth. As a result, Austrian United Steel sent a technical team of several hundred people, who passed through the border from Vienna by waterway and then went to Argentina. Prarie International also recruited thousands of Austrian workers locally and directly chartered a freighter, which was approved by Saint Hérse.

On the Belgian side, their steel plant also agreed to negotiations and prepared to go to Argentina for assistance. The Belgians were very advanced in blast furnace ironmaking.

And they are good at various supporting facilities construction such as more advanced coal chemical industry, electricity, coking, etc. The La Plata Steel Plant recruited more than 500 people at one time, and used railway transportation to dismantle various steel plant equipment.

Belgium's steel industry is currently suppressed by both powerful France and the resurgent West Germany, and Belgium's coal and iron mainly come from the Ruhr area.

The cost limit is very large, so they are willing to cooperate with the Argentinians. After all, Belgium also wants to eliminate some old equipment. These second-hand equipment are very advanced for Argentina.

In contrast, other countries are unwilling to lose their own steel industry. Fortunately, Europe is not a country, otherwise Saint Hérse would only be able to find technology from Japan.

Although the European Coal and Steel Community has been established, the main influence is still the French and the Germans, and the other four small countries are only supporting roles. Even if the treaty stipulates that Belgian steel plants can obtain cheaper raw materials, the priority is still not as good as Germany and France, which makes the Belgians helpless.

......

The work during this period was very simple, that is, raising money to do things. Bank loans are not so easy to get, and fundraising is not so easy to raise, even if there is someone to guarantee, the bank is still not at ease, so Saint Hérse also needs a wealth conference to boost the confidence of these people.

Obviously, he succeeded.

Argentina's business environment is actually very general, and the development of the financial industry is even more general. Everyone is unwilling to invest money in the industrial aspect. Saint Hérse cannot put all his cash flow into this huge investment in the steel plant, and he still needs to use external forces.

Currently, it generally takes two to three years to invest in the construction of a large steel plant, and he still needs to keep some money for backup. After calculations by several financial officers, this investment requires at least 50 million US dollars or more. The funds raised by Saint Hérse this time far exceeded 45 million US dollars, but instead 57.78 million US dollars, far exceeding the target.

In fact, the original 45 million US dollars was not enough. This is only the funds needed to build the steel plant and supporting facilities. Raw materials can only come from abroad. Saint Hérse has two goals in mind: one is the iron ore in Bolivia, which is enough to cope with the iron ore needs for the next few decades, but the investment is huge.

The second is the undiscovered iron ore in Western Australia, which requires less investment, but transportation is a challenge, and the grade of Australian coal mines is also high, which can be dealt with together.

Brazilian iron ore is only the third choice, but it is currently the only choice. Prarie has signed a contract with Vale do Rio Doce in Brazil, because Brazil and Argentina are naturally at odds, so we must also guard against it.

Speaking of raw materials, there is also port construction. At present, the draft depth of the Port of La Plata is only less than 10 meters, and it can only berth freighters of less than 20,000 tons, which is very unreliable. If you want to safely berth a freighter of 50,000 tons, then the draft depth is best to be 12 meters, which is also a sum of money.

Argentina lacks deep-water good ports in terms of shipping, which is also a pity, but if there is money in the future, building a few more artificial ports, or even land reclamation, and building a bay is not a problem.

This steel conference also had an unexpected gain, that is, to promote the infant industry protection theory, at least to have a few more allies, and to gain the recognition of many people, so that Saint Hérse's subsequent preparation for customs tariff goals has a lot more voice.

These two things are actually in progress simultaneously. The steel plant is a pleasant surprise and has also become a breakthrough in tariff reform.

This speech was widely publicized by major newspapers, and Saint Hérse's popularity has also increased a lot. Such a patriot should be respected and loved by many people. Saint Hérse himself blew himself up, and a series of carefully selected photos were selected, and articles began to spread widely.

"An Argentine's Steel Empire Dream" quickly spread throughout the country.

"Investing in Steel is Investing in Argentina's Future" This article has also been reprinted a lot.

"'Steel Power Theory', the Concept of Young Saint Hérse Cohen"

"Don't Let Patriots Down, We Need More Steel Warriors"

"On the Importance of Steel and Argentina's Industrialization"

The Radical Party has also begun to speak out intensively, bombarding the unreasonable customs tariffs of the Perón government. The New Argentina Newspaper followed up and reprinted it in the first time. A public opinion storm has unfolded again, and this time it is going to be real.

The military Blue faction has also begun to speak out, dissatisfied with the tariff policy of the Perón government.

Economics professors have begun to throw out various new economic research data,

The Socialist Vanguard newspaper followed up,

The Radical Party's Buenos Aires Daily followed up… …

Industry associations followed up,

Finally, the labor union followed up,

The short-term balance was broken again, and the national public opinion suddenly turned, becoming critical of Perón's customs tariff policy.

It profoundly pointed out that the time has come for Argentina to change, and the existing customs tariff policy can no longer meet the needs of Argentina's industrial and commercial development.

The tariff amount is increasing, but the annual customs revenue is decreasing.

"Ten Sins of High Customs Import and Export Tariffs" This article was shocking and truly shocked all Argentines.

"The Disadvantages of Excessive Customs Tariffs"

"Perón Doesn't Understand Economics, the Time Has Come for Customs Tariff Reform"

Unlike the previous praise, now more intensive criticism of public opinion has arrived!