1186 Beef exchanged for Su-27, offal canned and exported to Africa (5/5)
"Everyone is short of foreign exchange, so that everyone's needs will be solved. There will be no losses due to changes in foreign exchange rates..." After Xie Kai finished explaining, he looked at General Lin's surprised expression and continued.
These days, it’s not possible without foreign exchange.
Argentina does not have enough foreign exchange, but wants China's investment and equipment; China does not have enough foreign exchange, but also wants the Soviet Su-27; the Soviet Union's foreign exchange is also not enough, but also needs to import a large amount of meat products...
How could General Lin not be surprised by the most primitive bartering to play such a huge deal?
"Can this work?" General Lin squeezed out a sentence for a long time.
He was really shocked by Xie Kai.
Why is this kid always so whimsical?
"It's OK, it's OK! Canned beef can't do it, beef can be done, too." Xie Kai nodded affirmatively and said.
At least, canned beef is much better than the instant noodles that have become popular in China.
At that time, there is no need to collect dog skins everywhere in the country to exchange for Soviet fighter jets.
Xie Kai knew that there were only 24 Su-27s bought from the Soviet Union. Except for paying a portion of foreign exchange, the rest were paid out of light industrial products. For example, 200,000 boxes of instant noodles were exchanged for Su-27, and tens of thousands of dog skins were exchanged for another...
In order to collect complete dog skins from the Soviet Union, dogs were almost no longer seen in the north at that time. Even instant noodles were not used to eating spicy flavors, so the other party asked to terminate the trade. In the end, a batch of seafood sauce was directly transported in China to solve the problem.
In the era of lack of foreign exchange, the bartering method is actually the best.
From the beginning, Xie Kai was planning to use light industrial products to exchange aircraft in the Soviet Union. He originally thought that he would have to wait until the Soviet Union collapsed before he had a chance. Who would have thought that it would be easier to have an Argentina now.
"How many cans do you have?" General Lin asked, "We can ask there, there is no negotiation on the price now."
"It's worth at least 500 million US dollars, maybe more." Xie Kai thought for a while, thinking that no matter how poor Argentina is, 500 million US dollars can still be paid.
They used their large-scale production of beef in China and were not very valuable to exchange for China's military equipment and technical production lines.
There is no shortage of light industrial products in China, and you can use this thing to find the Soviets to exchange fighter jets...
Very good deal.
"The Chinese will not agree to our cooperation requirements. No one will agree to such conditions. General Ibrahim is right, it is a loss-making deal..." Walila and his men were anxious and angry.
Originally, they thought that Chinese military factories would be very happy to accept their orders when they cancel a large number of military orders in their country.
But Ibrahim's words made them understand that the Chinese took extremely great risks and did not get any benefits in the early stage to give them money to produce weapons and equipment, and no one felt it was impossible.
"If the country has enough foreign exchange, it will not be like this!" Raul Caoto sighed, "The Chinese are far faster than ours in some industries. Even many technologies have thrown us away."
Once upon a time, some areas of Argentina were advanced than China.
However, Argentina's economic development speed is far less than that of China.
"Did you give up like this? If the Chinese don't help us, which country is willing to help us?" Carlos's face was a little desperate.
After contacting Xie Kai, and the intermediary Ibrahim came to find the Chinese in person, it was useless.
If cooperation is achieved, not only will their military strength be greatly improved, but their economy can also develop with China.
"Use canned beef to mortgage? Thank you, can you exchange anything?" Ibrahim thought he had heard Xie Kai's request for a moment.
Canned beef is exchanged for Chinese equipment.
This is so whimsical...are you too whimsical?
It is reasonable to exchange oil for something, but the demand for oil is very large.
But changing beef cans to tanks, fighter jets, or even warships is definitely something that has never happened before.
"The minimum advance payment of $1 billion, of which $500 million is paid in cash, and the remaining $500 million is paid in canned beef..." Xie Kai ignored Ibrahim's surprise.
How can a person like Ibrahim understand the pain of a country lacking foreign exchange?
If you don’t have money and have supplies, then just be more primitive, use bartering, and at most, use US dollars as a tool to measure the value of various supplies.
Sha Damu has no money and is ready to launch a war and he is paying for his debts.
"Okay, I will notify them. Thank you, you have thought about how much beef you can buy for $500 million..." Ibrahim felt that it was necessary to remind Xie Kai, "I'll agree first. If you give me my commission, it will be considered beef. It's absolutely not possible. I can't eat that much!"
"..." Xie Kai was speechless.
This guy is definitely not a joke.
"Thank you, canned beef products do not seem to be very popular in your country..." Ibrahim reminded Xie Kai.
The international beef price is only more than one dollar per kilogram, and only more than one thousand per ton. Even if it is processed into canned food, it will be up to 2,500 US dollars per ton of 50 million US dollars, which requires 200,000 tons of beef beef!
With such a huge amount, how long does it take to digest it in China?
"You don't have to worry about this. Cannery can cooperate with them and choose their domestic food machinery suppliers... but the canning formula must be as per our requirements." Xie Kai just asked Ibrahim to tell the other party, and he didn't have the heart to explain too much to him.
Two hundred thousand tons of beef, is it a lot?
And this is not a one-time delivery.
According to the current situation, it will take one or two years to build a cannery factory, which is still very fast.
When it was produced, it was almost the time when the Soviet Union collapsed.
The Soviet Union was originally an agricultural powerhouse, with the largest land area in the world, with a vast land area and sparse population, and the agricultural planting area and pasture area are the largest in the world.
Unfortunately, the Soviet Union invested all its funds in the development of heavy industry, and there was insufficient investment in agriculture, and economic reforms in recent years have failed.
The entire Soviet Union had the most powerful industrial system in the world and the most top technological and military power in the world, but the domestic supply of daily necessities was severely scarce.
It was not until the collapse of the Soviet Union that the Russian government carried out a twenty-year economic structural adjustment and gradually increased investment in agriculture that gradually improved these problems.
The 200,000 tons of canned beef looks a lot, but not much for the huge Chinese market and the Soviet market, which was extremely scarce.
"At least 500,000 and 600,000 cattle, can Argentina provide it?" Zheng Yucheng was a little worried.
Xie Kai shook his head, "Their domestic beef is not exported much now, and it has squeezed too much. Moreover, these hundreds of thousands of tons will definitely not be delivered at one time, nor will it be delivered."
“There is not much profit here.”
"The profit is very high." Xie Kai said with a smile, "For foreigners, only beef can be eaten on the beef, but for us, nothing will be wasted. Then, you can also make the internal organs into cans and export them to Africa..."
"You..." Zheng Yucheng widened his eyes.
Indeed, when eating meat in China, you will eat everything you can eat, and many things are delicious.
"At least one billion US dollars in advance?" Argentina was overwhelmed. "If there was such a large amount of foreign exchange, we..."
The meaning is very obvious. With this money, you don’t have to buy Chinese equipment at all.
The government owes $70 billion in foreign debt.
"The minimum cash of 500 million US dollars, the remaining 500 million US dollars can be paid with your unsold domestic beef. General Carlos, Minister Raul, I have also put a lot of effort into convince them... You should know that China does not lack these products. China has always been a traditional agricultural power. They have supported the largest population in the world..." Although Ibrahim could not understand the reason why Xie Kai proposed that Argentines could pay for products with canned beef, he also hoped to promote cooperation between the two sides as soon as possible.
Xie Kai took the initiative to exchange materials for it, and there was definitely a reason why he said that.
It is even more impossible to have no high profits, just like they used oil to make up for the difference.
The international price of beef is not very high, and the European and American markets are filled with meat products from countries such as the United States, Canada, Australia and New Zealand, which have good relations with Europe and the United States.
Suppressed by international prices, Argentina's agricultural products are even cheaper in the international market.
"Pay with canned beef?" Raul Caoto looked puzzled. He was the deputy minister of the Ministry of Industry, not the minister of agriculture.
"China and your country jointly set up a beef canned factory, and they will provide the recipes, etc...." Ibrahim did not understand these requests made by Xie Kai.
"If this is the case, there is no big problem. Then about the others..." Carlos felt that this was not a problem.
What Argentina lacks the most is beef.
Since fighting with Britain, Britain has almost stopped importing beef from Argentina, Australia and New Zealand, other Commonwealth member states. Even Europe has refused to import Argentina's agricultural products because of its alliance with Britain.
Needless to say, the United States is still exporting agricultural products.
"The production equipment of the canned factory can be purchased directly from your country by you. After the contract is signed, it will start operating..." Ibrahim told the other party about the Chinese's request. "The total amount of equipment of 2 billion US dollars and the advance payment of 500 million US dollars is the minimum requirement they can accept."
In fact, Xie Kai asked him to tell the Argentinians that they could use canned beef to pay for the goods.
He didn't know how Xie Kai would work specifically.
If I knew Xie Kai’s crazy thoughts, what else could I do besides scolding Xie Kai?
Chapter completed!