Chapter One Hundred Sixteen: The Plan Comes into Effect (Part II)

The next meeting took place in the afternoon. The leaders from the aviation sector arrived cheerfully, all hoping for a peaceful adjournment. General Nie’s temper at midday had been formidable, leaving an oppressive impression—truly a man shaped by the years of war, possessing an extraordinary presence.

Once everyone was seated, General Nie began to speak again. Over lunch, he and Yang Hui had discussed the manufacturing issues facing the aviation sector. After hearing Yang Hui’s account, General Nie spent much time reflecting.

“Alright, everyone’s here, let’s continue. The two points we discussed at noon pertained to the designer system. However, the issue of product quality raised by Pakistan remains unresolved. After the meeting, I reviewed some materials and compared them to the problems faced by the aerospace industry in previous years. It turns out the issues are much the same. Now that the quality concerns in aerospace have been addressed, I’ll elaborate further.”

At that time, the aerospace system was exceptionally secretive, with a confidentiality level far higher than the aviation sector. In the 1980s, the State Council gradually took over, eventually assuming direct leadership of all major mechanical industries.

It began with the fourth and sixth industrial ministries—the shipbuilding and electronics sectors were the first to be absorbed. Next came the third and fifth ministries, namely aviation and ordnance. Finally, the second and seventh ministries were taken over, marking the transition of nuclear and aerospace industries.

During the decade of major upheaval, industrial development suffered greatly, and quality issues were widespread. The aviation sector was troubled, and the aerospace sector was no exception.

The difference lay in the timeline: the aerospace sector was transferred to the State Council later, while the military still oversaw its affairs. Problems left over from the decade of revolution were swiftly dealt with through the military’s forceful measures.

In contrast, when the aviation sector was fully handed over to the government, the military had not yet rectified its issues. Thus, it was transferred directly to the State Council, severing all ties with the military. With a host of lingering problems, it came under government control, yet the administration lacked the means for effective reform, leaving those issues unresolved.

Thus, General Nie currently had no authority over the aviation industry’s problems. But this time, the chief designer had summoned him to oversee project negotiations, and since the foreign party had raised concerns, it fell to General Nie to solve them. If necessary, he was ready to consult the designer directly for solutions.

With a reform plan in mind, General Nie found matters easier to handle. He combined the points raised by Yang Hui with his own insights from years of reviewing aviation production data and spoke.

“The designer system’s problems are now resolved, so we must address production issues. Some factory leaders simply do not take quality seriously. The money they receive does not match the quality of their products—some even take payment without doing the work. This drags down the entire system, and I see this as the most severe issue, directly tied to the product quality concerns raised by our partners.”

Now the matter of the manufacturing factories was on the table. The factory directors below sat as if on pins and needles, none daring to speak—a sign that the reforms would indeed be carried out.

The personnel from the National Defense Science Committee showed no reaction, but Madad and Sultan were thoroughly satisfied. Seeing their concerns taken seriously and now addressed, they looked forward to the coming reforms.

With the issues laid bare, General Nie turned to others for their views: “Comrades from the Science Committee, what are your thoughts on this? Speak up—you have jurisdiction over these matters.”

Director Yang, who led the delegation from the Science Committee and was also Deputy Director in charge of personnel and institutional reform, knew he had to respond.

“General Nie, rest assured—these three issues are our responsibility. Our preliminary plan is to use the 0011 base, which is part of this foreign cooperation, as a pilot for institutional reform. If it proves effective, we will proceed with broader reforms across the aviation system.”

Director Yang’s words reflected the spirit of the era, fitting the context of the 1980s: reform is the engine of progress; cross the river by feeling the stones, trial first, then expansion.

With the deputy director in charge of reform saying as much, the factory directors at the base had no choice but to comply and carry out the reforms as instructed.

Yang Hui, Director Bai, and Chief Engineer Yu were delighted—they no longer needed to worry about unity after the base’s reform. The Science Committee was taking charge; it was no longer their concern.

General Nie, seeing that the deputy director was adept at handling matters, nodded silently and proceeded to share his proposed improvements, determined to eradicate each issue.

“Good, since the Committee has committed to reform, and the 0011 base will be used as a pilot, I believe this is an excellent approach. As for the solution to the quality problem I mentioned, I have some ideas.”

He tapped the table rhythmically and outlined his solution: “I suggest establishing an ‘economic responsibility system.’ Each finished product must undergo a principle test, a single-product test, a ground system test, installation tests, and flight tests. In other words, if the product fails to meet standards, no payment will be made.”

This was also the reform plan later proposed by Chief Designer Song. Yang Hui knew it was a solid approach and was eager for General Nie’s endorsement.

The factory directors practically exploded at this suggestion. Such a proposal would make future production very difficult. Back in the 1980s, it was customary to receive payment first and then proceed with production. Now, suddenly, payment would come only after the work was done—this was unheard of.

Ignoring decorum, several directors began whispering among themselves.

“This system General Nie proposes isn’t right—doing the work before receiving payment? That’s never happened before.”

“Yes, yes, we always get paid first, then make plans and buy materials, and finally produce. If our factories have to cover all upfront costs, our funds will be tied up.”

“That’s exactly the issue…”

Their voices grew louder, so much so that anyone with decent hearing could catch their words. The entire room heard them, including General Nie, who realized his proposal was indeed too harsh, not taking into account the funding situation. After some thought, he decided to ease the policy somewhat.

Relaxing the rule was one thing, but General Nie felt compelled to address their whispered discussions: “If there are issues, bring them up directly. What’s the point of whispering? Besides, you’re not just whispering—you’re so loud everyone in the conference room can hear you.”

The room burst into laughter. The factory directors’ faces flushed a deep purple, forced to endure the embarrassment.

Seeing their predicament, General Nie decided not to dwell further on the issue.

“Alright, regarding your funding concerns, I’ve thought it over. If funds are insufficient, you may collect a deposit, but you must sign a contract. If you take the money and fail to deliver, you’ll have to pay compensation—and pay heavily, from your factory’s own coffers. The state fully supports this.”

With the introduction of a contractual system, common in capitalist economies, the factory directors fell silent. Things had been spelled out so clearly—further resistance would be unwise.

Sultan was very pleased with the introduction of contracts. This, he felt, was a step toward proper practice; future joint projects would be safeguarded.

“This contract system is excellent. We, in Saudi Arabia, are very satisfied. Western aviation firms have long operated this way. If you continue with planned production, product quality will never be assured.”

…

The meeting deepened, moving from selection of designers, to reforming systems, to the authority of foreign oversight, and finally to coordinating the development of supporting test equipment. One issue after another was tackled.

According to the pace of negotiations, the contract would soon be formally signed. Meanwhile, as news of the imminent conclusion reached the South Sea, the application to establish the company was finally approved by higher authorities.