Beiyang reactionaries

So immediately tell Duan Xun what he thinks.

"Tell me carefully."

"Prime Minister, at present, our country needs funds, a large amount of funds, to solve our current problems. Moreover, the funds we need are not the currency we issue ourselves, but real money. Only when real money appears can we It can continue to promote China's economic development, and can also digest our country's inflation. After these years of private gold and silver exchange, private gold and silver have bottomed out, so our country's current funds are limited. Therefore, the only way to solve our country's funds The most important thing is foreign countries. Originally, our country had a lot of foreign debts, and the current interest rates are also high, which puts us under considerable financial pressure. According to normal circumstances, we should not continue to lend. But if war is imminent, then we have no problem with loans. On the contrary, in Before the war comes, we can borrow as much as we can regardless of future problems.”

Duan Xun frowned slightly.

Duan Xun is also aware of the current economic problems in China.

If it is a peaceful age, the current Chinese economy is very dangerous.If it is not resolved quickly, it is very likely that a Great Depression will break out in a few years, like the United States, and a large number of unemployment will break out.

First of all, the government used the policy of exchanging banknotes for gold and silver to seize a large amount of private wealth.However, folk wealth is limited, and the government has almost exhausted the gold and silver that has been looted by the folks for ten years.Even these looted gold and silver are almost used by the government.In the current situation, the government can no longer produce much real money such as gold and silver. In order to maintain the economy, it can only continue to print a large amount of money.And continue to print money, the result is that China's current inflation is very serious.

In terms of economics, China's current situation is quite dangerous.However, because of the special circumstances, the third five-year plan focuses on the development of the military industry.Therefore, China is currently developing the military industry toughly.

A lot of money has flowed into the military industry.

The military industry developed vigorously.

Just look at China's current production of military products.The production of aircraft and tanks has increased rapidly, including a large amount of money currently flowing into the Chinese Navy.With the end of the "Sino-Japanese Naval Limitation Treaty", China began to build a large number of aircraft carriers, destroyers, and submarines.China's military spending has soared, and it is currently on par with Germany and the Soviet Union in the world.

However, the sharp increase in military spending has led to a snowballing expansion of government debt.Although China's finances have increased rapidly, the increase in debt far outpaces the increase in finances.Therefore, China's current finances are becoming more and more dangerous.Although China's loans to Europe and the United States in the past two years have been much less than the second five-year plan, they are still not a small amount.

This is because Duan Xun knew that war was inevitable, so he did not object to loans from the great powers.But what Wang Yongjiang means now is to make a large amount of loans again before the war breaks out.Use these loans to solve current domestic funding problems.

"Prime Minister, once a war breaks out, all the countries participating in the war will need a lot of materials and more military products. The same is true for our country. Once a war breaks out, our country also needs to quickly increase production capacity. At present, our country's industrial base is already very good, just in time Take advantage of the current opportunity. Use a large number of loans from Europe and the United States, and then carry out a wave of large-scale construction. This can alleviate the aftermath of inflation, and can also use inflation to relieve the government's internal debt. More importantly, the large amount of loans before the war, once There are many ways to delay the repayment time when the war breaks out. Once this happens, these loans become our own money and become our country’s construction funds. After the war is over, there will be a lot of buffer time for repayment. "

Inflation also varies.

Inflation caused by the government's excessive currency issuance is completely different from inflation caused by increased domestic and foreign investment.The introduction of a large amount of foreign capital will also cause domestic inflation.But this is inflation in the process of development.In any developing economy, there will be inflation.This kind of inflation, on the contrary, is conducive to diluting government debts and is conducive to the development of China's economy.

"How much loan do you think is appropriate?"

"At least 40 billion U.S. dollars within two years. It would be even better if there were 50 billion U.S. dollars. China is currently negotiating trade agreements with most European and American powers, and their financial institutions are also very willing to cooperate with us. From the second five We are very happy to cooperate with their financial institutions. Therefore, as long as there is collateral for loans with them, there is not much problem. Now our country has a lot of items that can be mortgaged. Now our country is close to Germany and Italy and has become their The largest supplier of raw materials. Pledging the raw materials we export to them in the future, we can also borrow a lot of money from these two countries. Prime Minister, if we can borrow 40 billion US dollars, or even 50 billion US dollars, it will definitely be beneficial to our current economy cardiac."

40 billion US dollars, more than 150 billion French currency. 50 billion US dollars, that is nearly 200 billion French currency.

In the past few years, the currency has been flooded, and the exchange rate of China's legal currency has also dropped rapidly. 40 billion US dollars, the official exchange rate has exceeded 150 billion French currency.Because China's currency is not a world currency, and currency exchange is strictly controlled.Therefore, in black market transactions, the exchange rate of US dollars to legal tender far exceeds the official exchange rate.With so much money flowing into China, it will continue to promote the development of China's economy.

Of course, if it is in peacetime, such a loan is also a practice of drinking poison to quench thirst, and it is a very dangerous practice.

Because the borrowed money has to be repaid.

The financial institutions of those great powers are not charities.If you borrow money from others, you have to pay back the money at the loan interest rate.For the Chinese government, which currently has a staggering debt ratio, such loans are likely to cause financial collapse.

But in special times, this is a good way.As Wang Yongjiang said, once there is a war, these loans are nothing.If it is a hostile country, what kind of money will you pay during the war? It would be good if your assets are not confiscated.Even if they are allies, they will delay the repayment time during wars.

In other words, if a large amount of loans can be made in the past two years, China will not need to repay the money for a long time.The repayment will not continue until the war is over.This has a long buffer time for China's finances.

"It can be operated."

Duan Xun nodded slowly, supporting Wang Yongjiang's idea.

Duan Xun just didn't stop borrowing from the big powers before, but Wang Yongjiang wanted to consciously borrow a lot from them.If it is operated consciously, it will be another situation of the second five-year plan.

40 billion US dollars, 50 billion US dollars, such a large amount of loans, how many machines, equipment and technologies of the great powers can be introduced.How many key projects can China carry out again.

"However, you should have a detailed plan on how to use the money."

"Yes."

Seeing Duan Xun's support, Wang Yongjiang was very happy.

Wang Yongjiang knows that this is his last term, let alone his age, his body cannot allow him to continue in this position.Therefore, before leaving, Wang Yongjiang hopes to do more things.

"Giving preferential policies to foreign businessmen, what do you think about this?"

"Prime Minister, a special policy in a special period. Since we promulgated the 'Foreign Investment Law' and the 'Chinese Entrepreneurs Investment Law' in April this year (1936), the effect has begun to appear in less than three months. Many people are concerned about asset security. Hesitant foreign and Chinese businessmen began to flow into our country. In particular, the savings rates of Oversea-Chinese Banking Corporation and Commercial Bank of China began to increase rapidly, all because our country formulated laws and regulations in this area, which reassured many foreign and Chinese businessmen. But this is Protect their property rights at the legal level. If you want to attract more foreign capital into our country, you should also give them some support in terms of policies. Especially for the factories they invest in, it is the best way to introduce some preferential terms. For example, in land use In terms of taxation and other formalities, we can give them more benefits. Only in this way can we attract more funds to flow into our country faster."

For foreign investment, in fact, China has always existed in the early years.Even overpriced.In terms of tariff rates, and foreign goods are not taxed in the country, etc., have severely hit the development of national capital.

Therefore, with the start of the second five-year plan, or with the rise of China's national capital and the rise of nationalism, many people in China are very dissatisfied with the preferential treatment of foreign capital.Therefore, under such an atmosphere of public opinion in China, many previous preferential conditions were slowly abandoned.

After all, those are just some policy stuff.

As long as the government doesn't care, it will be gone easily.

"The use of foreign capital, especially foreign direct investment, will never be outdated. A country can receive a large amount of foreign investment, which itself shows that the country's economy is stable, and everyone is optimistic about the country's future."

Even after 100 years, the countries that can stably receive a large amount of foreign investment are all countries with stable political and economic stability.At that time, the United States and China were the largest users of foreign capital in the world.

Therefore, do not refuse foreign investment.

"We promulgated the 'Foreign Investment Law' and the 'Chinese Entrepreneurs Investment Law', mainly to protect their property safety in our country. Take this opportunity to standardize the policy issues of foreign investment. Form a clear national policy document. Central Without a clear attitude, foreign businessmen will be confused, local governments will be confused, and they will not be able to figure out the intention of the central government. This is a bad thing for the continuous and stable acceptance of investment. Only stable policies and regulations can make them completely at ease. Prime Minister Wang, you should start studying this matter immediately and issue the clearest policy document as soon as possible."

"Yes."

"Tap-tap-"

"Prime Minister, Prime Minister Wang, just received news from Palembang (capital of the Sumatra Autonomous Government)."

"Prime Minister, Prime Minister Wang, just received news from Palembang (capital of the Sumatra Autonomous Government)."

"whats the matter."

"The Ministry of Foreign Affairs of the Republic of Indonesia held a press conference two hours ago, stating that two fishing boats of the Republic of Indonesia sank last night. It was identified as the Dutch Far East Fleet. The Republic of Indonesia asked the Dutch Far East Fleet to accept their inspection and find out the culprit of the incident. , and deliver the person to the Republic of Indonesia for trial."

"Oh?"

Duan Xun was taken aback.

Then they looked at Wang Yongjiang, and both of them couldn't help shaking their heads and laughing dumbfoundedly.Since the joint fleet of China and Japan wiped out the main force of the Dutch Far East Fleet last year (1935), China and Japan have divided up the Indonesian colony of the Netherlands.

Japan took control of Java Island and established the Republic of Indonesia.China took control of Sumatra Island and established the Sumatra Autonomous Government.Of course, the current Sumatra Autonomous Government is nominally under the leadership of the Republic of Indonesia.However, the Sumatra Autonomous Government is only nominally outside the Republic of Indonesia, but in fact almost all powers are completely autonomous.

The Sumatra Autonomous Government has its own army, its own administrative system, and even its own independent foreign ministry.Therefore, it can be said that the Sumatra Autonomous Government is actually an independent country in fact, except that it is not independent in name.

The four major islands in Indonesia in history, Java Island, Sumatra Island, Kalimantan Island, and Sulawesi Island.At present, Java Island is in the hands of Japan, Sumatra Island is in the hands of China, and Kalimantan Island is in the hands of the British.So only the island of Sulawesi remained under the control of the Netherlands.

In fact, the Netherlands also controlled Irian Island before.

But it was later taken by Germany and became a German colony.During the First World War, it was managed by Australia and is currently controlled by Australia.Therefore, the colonies controlled by the Netherlands in the Nanyang region are getting smaller and smaller, and their strength is getting weaker and weaker.

In the naval battle last year, the main force of the Dutch Far East Fleet was wiped out, so the Dutch Far East Fleet has only a few broken ships left, huddled in Sulawesi.Moreover, given the current situation in the Netherlands, there is no strength to develop the Far East Fleet for a while.Therefore, the Dutch Far East Fleet has been cautious since last year.On the contrary, Japan has made great moves in Java Island, its military power has grown rapidly, and it has also established a Nanyang Fleet.

The strength of the Japanese Nanyang Fleet is very strong, and it can be described as a dominant force in Nanyang.In terms of the current fleet size, it is not inferior to the British Far East Fleet in Singapore.Coupled with the Japanese naval fleets in Taiwan and Qiongya (Hainan), the strength is already stabilizing the British Far East Fleet.In other words, Japan's current naval strength in Nanyang is already ranked first.

At this time, if Japan does not provoke the Netherlands, the Netherlands is already Amitabha, so how dare they provoke Japan.The few remaining broken warships in the Netherlands live in fear every day.Especially when they watched the Japanese warships swaggering in front of them, they were even more aggrieved.But even so, they did not dare to offend Japan at all.