Chapter 366 - The Foshan Journey (Part 19)

"There is such a theory. Only the language isn't quite similar." Li Luoyou recalled Liu San's strange Mandarin. Suddenly something stirred in his mind—Liu San's Mandarin pronunciation bore a certain resemblance to that of Liaodong Han Chinese. He frowned. "Still, if they mean to colonize and settle, aren't they afraid the court will dispatch troops to exterminate them? And that county magistrate in Lingao must be a complete wine-bag and rice-sack—what manner of incompetent is running that place?" He slapped the table in frustration.

"Mr. Li, please don't get agitated." Quark Qiong said. "The Australians should harbor no hostile intentions. We've heard nothing of them harming maritime trade—you know, with their iron ships, robbing coastal merchants would be quite easy."

"That's true."

"Look, you even purchased their medicines—the Australians don't seem malicious. They observe rules and order around here. They're decent merchants." Quark Qiong spoke with enthusiasm. "I'd very much like to trade with them."

"You'll certainly have ample opportunity to trade with them." Li Luoyou had no doubt about this.

"But I still don't know what they want," Quark Qiong said with some regret. "They need medicinal ingredients, but they've already signed contracts with Shopkeeper Yang. If I knew what they required most, I could bring a cargo when we visit Lingao next month."

"You truly are a shrewd merchant." Li Luoyou smiled. "I believe they need iron and coal—especially coal."

"Why?"

"My clerk reported—the craftsmen they're recruiting are mainly ceramic workers and founders. Both require coal. I recall Lingao produces no coal."

"Coal?" Quark Qiong shook his head regretfully. "Too dirty, and I've no source." He thought a moment. "How about pig iron? If they've recruited founders."

"That's possible." Li Luoyou thought this Englishman reacted quickly.

"I believe they also need cloth." Quark Qiong thought of the Indian cotton cloth he'd shipped from Surat, still sitting in Li Luoyou's warehouse with little sold... Suddenly he remembered something:

"Mr. Li," Quark Qiong asked. "Do you truly intend to establish a foundry?"

"Yes." Li Luoyou found this puzzling—hadn't they discussed this matter just days ago?

"But as I see it, manufacturing firearms isn't a lucrative business."

"Correct." Li Luoyou calculated mentally. Looking purely at profit-making, casting cannons wasn't an attractive venture—troublesome, tedious, requiring government dealings. Dealing with the government meant costs that might far exceed the project investment itself. And the Ming government was notoriously stingy about paying for "national uses." Its procurement was essentially robbery.

The Ming's "Licensed Merchant Procurement" system required all trade shops to rotate mandatory service purchasing goods for the government. Funds were nominally provided, but rarely paid in full—how much depended on the official's character, with enormous room for manipulation—prime opportunities for officials to profit. Shortfalls were borne by the rotating merchants.

Moreover, by mid-dynasty, government procurement prices often remained at Zhu Yuanzhang-era rates. Unchanged for one or two centuries—even if the government paid every wen, merchants suffered enormous losses.

Merchants feared government power and could only absorb the losses. Years of this system had made commercial citizens cry in desperation. Wealthy merchants with connections escaped through bribery; middle and small merchants without resources often faced bankruptcy and ruin.

The court recognized the accumulated abuses and made adjustments, changing "Licensed Merchant Procurement" to "Commissioned Merchant Procurement." But despite the name change, local governments continued operating as they pleased.

Li Luoyou knew the current Foshan cannon-casting was nominally "Commissioned Merchant Procurement." But how much this commissioned procurement would actually pay remained highly uncertain. He possessed some standing in Liangguang and a few court officials for backing—local officials wouldn't brazenly underpay him. But indefinite delays were quite likely.

"Quark," Li Luoyou sighed. "You know—if I merely wanted to make money, any business here would be easier and more profitable than manufacturing firearms for the court. But the court needs these weapons to suppress local rebellions and fight the barbarians beyond the passes. These barbarians are no less savage than the Mongols. They're pressing ever southward toward the court's final defense line. I cannot imagine—" Li Luoyou cradled his head. Memories of the Guangning evacuation chaos flooded back, dizziness washing over him. "The scene of these barbarians entering the Central Plains—it would mean the destruction of Chinese civilization..."

He glanced at Quark Qiong. The Englishman's gray-blue eyes were fixed on him. Quark Qiong had never seen this great merchant so agitated. But his comparison of the barbarians to Mongols was something the Englishman fully understood: Mongols—destroyers of civilization.

"...By then, China would degenerate into something like present-day Russia—a barbarous country that others mock." Li Luoyou said quietly. "I must do everything in my power to prevent that day from coming."

Quark Qiong possessed no visceral understanding of the Later Jin, but witnessing Li Luoyou's patriotic devotion, he felt moved.

"I understand." Quark Qiong nodded. "This isn't merely a business venture."

He continued: "Mr. Li, how then do you plan to establish this foundry?"

"Naturally I'll hire local foremen who'll recruit local craftsmen." Li Luoyou said. "I know nothing of casting and smelting techniques."

"Mr. Li, have you considered hiring English craftsmen and building a workshop entirely according to English methods?"

"English methods?"

"Yes." Quark Qiong nodded. "Though I haven't seen local foundries, since the court so values English East India Company ship cannons as superior weapons, clearly firearms technology here lags behind Europe considerably."

"True. In this regard, our technology is indeed more backward." In Li Luoyou's view, China was resource-rich but technologically increasingly obsolescent. Especially having traded in Guangdong and frequently sailing to Southeast Asia—seeing European full-rigged ships with towering sides and rows of gun ports—though clumsy in coastal waters, on the high seas their handling and speed far surpassed traditional Guangzhou or Fujian vessels.

This gap had troubled Li Luoyou deeply. He wasn't given to self-deprecation, but he could feel the Great Ming growing stagnant and decadent in many areas. Now Quark Qiong was proposing European manufacturing methods for cannons—Li Luoyou was intrigued.

"What exactly does a European foundry look like?"

"Specialized iron-heating furnaces, boring machines, drilling equipment, blower furnaces—all water-wheel powered..." He added: "We can also cast hollow explosive shells. And matchlock muskets superior to any your court possesses."

"These..." Li Luoyou was startled. "This machinery—must it be purchased from England? And the craftsmen recruited from Europe?"

"For machinery, aside from a few specialized items, most can be substituted locally or manufactured on-site without great difficulty. Just a few European craftsmen for guidance would suffice. Father Ma mentioned that Chinese casting workers are no worse than European craftsmen. With guidance, they'll perform even better..."

Li Luoyou hesitated. This was a deeply tempting idea. Such a foundry, once operational, would outclass all current Western cannon imitation workshops. And according to Quark Qiong, production efficiency would be high.

But such a workshop would require far greater investment than local foundries, plus complications involving foreigners entering China. Government officials might not prove cooperative. And if court orders were limited or prices insufficient, such a heavily-invested foundry might lose everything.

He voiced these concerns.

"Sales won't be a problem." Quark Qiong said. "In all of East and Southeast Asia, only Macao and Goa can cast European-style cannons—both with very low output. But places wanting firearms aren't few. Not just China—Siam and the Lê dynasty are also building foundries and manufacturing weapons. If the Chinese court doesn't buy, selling to them would suffice to keep the workshop operating."

This "if we lose here, we gain there" thinking offered a possible way forward.

"But English craftsmen and equipment," Li Luoyou said. "Round trip would take at least a year and a half."

"Generously speaking, two years. But if you're manufacturing firearms at scale, that's not particularly long." Quark Qiong shrugged. "Once built, a workshop can operate for many years."

Quark Qiong volunteered: if this could be decided, he would immediately write to friends at the Surat English trading post, asking them to return to England and arrange everything.

Li Luoyou considered the proposal carefully and found it feasible.

"However, until your equipment and craftsmen set foot on Chinese soil, I won't pay you a thing." Li Luoyou said. "You may first calculate your costs and anticipated profits from this trade, then provide me a quote."

For Quark Qiong, this represented an enormous opportunity, but also enormous risk. If his purchased equipment sank en route to China, all his upfront investment would be completely lost.

After careful deliberation, the Englishman nodded: "Agreed! I shall give you a price within a few days."

(End of Chapter)