Chapter 84: Sincerity Must Precede Cooperation

A new channel for importing weapons—this indeed should be put on the agenda. After all, the world is not limited to Western countries when it comes to arms manufacturing. It’s time to look eastward; one should never tie oneself to a single tree.

“Hello, Mr. Yang. What you said makes perfect sense. At the very least, you’ve convinced me for now. But there’s another issue that Saudi Arabia is more concerned about, which we need to discuss.”

What concerns could Saudi Arabia have at this moment, apart from arms deals? Right now, what Saudi needs most is a formidable weapon—something so intimidating that any country contemplating military action would have to think twice.

Since the end of the Fifth Middle East War in 1982, Saudi Arabia had been tirelessly seeking to purchase advanced tactical ballistic missiles from the West, specifically the United States and France. The Pershing and Pluto missiles they sought were, after all, tactical ballistic missiles with ranges of only a few hundred kilometers. Yet, even so, Saudi Arabia found no way to acquire them.

Now, a new possibility had emerged—one that must be seized.

“Mr. Yang, are you suggesting that your country is willing to sell us weapons that Western countries refuse to provide?”

Upon hearing this, Yang Hui knew that Prince Sultan had come around. But just because the prince had figured things out, did that mean Yang Hui should immediately say, “Yes, we’re willing”? That was impossible. Yang Hui was only engaged in the trainer aircraft business—aircraft meant for pilot training. When it came to weapons, he had to proceed with caution.

“Prince Sultan, here’s the situation. We are only involved in trainer aircraft, but we do have channels to relay your country’s needs to the higher authorities. Our nation’s arms exports have always been free from any political agenda. That’s why our arms sales generally proceed quite smoothly.”

No attached political conditions—usually, as long as one is satisfied with the performance, a sale can be made. That was excellent news. It seemed there was a real chance of acquiring the big-ticket weapon Saudi Arabia needed. As for performance—at this stage, having the weapon at all was good enough; who could afford to be picky?

He immediately pressed further. “Would your side be able to help us convey our needs to your higher authorities? What we require is a formidable weapon, something that can command respect.”

Up to this point, both Director Ma and Madad had been unable to guess what Yang Hui and Prince Sultan were actually negotiating. The two were speaking in riddles, yet somehow understood each other perfectly.

As if it could be so easy to relay their needs to the higher authorities just like that! With a wealthy client passing through, this was the perfect moment to extract maximum value. Why else had they been so careful, speaking in riddles and half-truths? It was precisely to set up the opportunity to make some off-the-record requests now.

“If it were for ordinary weapons, we could help submit your request directly. But since your country is looking for something truly formidable, that does make things a bit more complicated.”

Complications? No problem—let’s hear what they are first. “Whatever the difficulties, just say it. Saudi Arabia can overcome any obstacle, as long as your side puts it forward.”

That was exactly the line he’d been waiting for.

“Let’s analyze this. So far, your country hasn’t established diplomatic relations with ours. We don’t know each other well. For a purchase of such magnitude, you’d at least want to deal with a trustworthy friend, right? Our two countries have never cooperated before, so it’s hard for me to report this request.”

Prince Sultan pondered this and realized it was true—without prior cooperation, how could such a major deal be negotiated with ease?

Seeing both sides at an impasse, Madad—still thinking only about trainer aircraft—suddenly had an idea.

“A cooperative track record? That’s easy enough. This trainer aircraft project is the perfect opportunity. Once we settle on this, everything else will fall into place.”

Ah, Madad truly was a natural-born salesman. Yang Hui had been about to drop a hint himself, seeing that Prince Sultan hadn’t caught on, but Madad had grasped it at once. Impressive—this man clearly had sharp instincts. Yang Hui silently praised him.

Prince Sultan, who had been perplexed, suddenly saw the light after Madad’s prompt. Indeed, the trainer aircraft project was an ideal opportunity. Through this, they could establish a relationship and familiarity, making it easier to raise further requests in the future.

“Very well. After hearing you out, I realize this trainer aircraft could indeed be of use to Saudi Arabia. We will invest in this project. As long as the development costs do not exceed $600 million, we can bear up to 50% of the expenses.”

Incredible—such is the style of a true tycoon. With a single sentence, everyone in the small meeting room was stunned. Fifty percent of $600 million—what does that amount to? At the current foreign exchange rate of 2.8 to 1 for foreign trade companies, that’s 1.68 billion yuan. Even half of that is nearly 840 million yuan.

What could 840 million yuan accomplish? For example, when the research institute in the Northeast began developing the J-8 (I) in 1976, the cost was only 137 million yuan. The early model of the J-8 (II), launched in 1980 (prior to the initiation of Project 82), cost just 540 million yuan. By this calculation, 840 million yuan offered enormous latitude for use.

Why did Saudi Arabia propose such a high budget? The answer is simple. Saudi Arabia’s military uses Western aircraft, so they are familiar with Western development costs. Let's look at what it cost the West to develop a fighter jet.

The earliest third-generation American F-14 entered service in 1972, but its development cost was a staggering $1.214 billion. The F-15, just two years later, cost $2.745 billion to develop—both in the early 1970s. By the early 1980s, the cost of developing a new plane would be even higher.

Though this was merely a trainer, it was still a military aircraft, and one needed to train third-generation pilots—so, naturally, it would be seen as a high-tech project. By such reckoning, $600 million for developing a trainer seemed about right.

Yet, for all Prince Sultan’s calculations, he had not anticipated the enormous disparity in development costs between East and West. Yang Hui was nearly moved to tears with joy; this was the generosity of a true tycoon.

“Very well. If Saudi funding is injected into the trainer project, development will certainly proceed both quickly and efficiently. Rest assured, Prince. As soon as our three parties finalize this project and sign a formal contract, I will immediately submit it to the higher authorities, paving the way for the next phase of military cooperation.”

Let’s run the numbers: 840 million yuan from Saudi Arabia. If Pakistan covers 25%, that’s another 420 million. Given the current situation, the institute’s model aircraft project could easily earn another 420 million yuan. If the country suspends the JJ-7 project, allocates extra funds, and pools resources, raising a total of two billion yuan shouldn’t be a problem.

Moreover, if the project continues as Yang Hui expects, there will be two more rounds of funding, providing a double layer of security. Not only could the trainer be well developed, but the supporting power systems could also be funded from the same budget.

To think that the domestic practice of pairing engine and aircraft development in a single project, a system long criticized by Yang Hui in his thesis, would actually be realized under his own hand! He felt almost embarrassed—after all, he’d lambasted the practice in his writing, and now here he was, doing the very same thing.

Still, with funding in hand, who cared about saving face? The priority was securing the money.

“Mr. Madad, now that we’ve secured funding, the trainer aircraft project should be feasible. I hope you’ll explain the benefits of this endeavor in detail to President Zia-ul-Haq when you return. We must ensure this cooperation succeeds.”

Madad understood that the project was now tantalizingly close to being approved. He would have to convince the president—there was no way he would allow such a promising project to be delayed.

“Very well, Your Highness Prince Sultan. Let’s tentatively agree on this for now. We will immediately begin lobbying our superiors upon our return, so that together, we may ensure the project’s success.”

“Excellent, Mr. Yang. We will still need your assistance with follow-up issues. You are both an outstanding negotiator and Saudi Arabia’s best friend.”

With the main issues settled, it seemed they had successfully won over Saudi Arabia. From now on, with this wealthy benefactor on their side, the possibilities were endless.