Chapter 136 Comprador
Chapter 136 Comprador
Saturday, November 12, 1988.
Seven o'clock in the morning.
Bunkyo District, Saionji Headquarters.
The morning mist of late autumn had not yet dissipated, and glistening dewdrops clung to the red leaves in the courtyard.
Compared to the raging waves at Xiaguan last night, this place is so quiet it feels like another time and space.
Inside the study, the black encrypted telephone receiver sat on the table.
Satsuki wore a loose white morning robe and walked barefoot on the thick carpet. She held a cup of black coffee in her hand, her gaze fixed on the old pine tree in the dry landscape garden outside the window.
The person on the other end of the phone spoke English with a distinct California accent, very fast, and with a sense of excited anxiety.
"Ms. Saionji, are you serious? Clearing out our Asian inventory? Do you know how many AGS routers that is? That's all the stock we had in our Singapore and Hong Kong warehouses, originally intended for..."
That's Sandy Lerner, the co-founder of Cisco.
Even across the Pacific Ocean, you could hear the shock in her voice.
Satsuki took a sip of coffee, the bitter taste spreading across her tongue.
"Sandy, I don't want to hear that inventory management stuff."
Listen.
"Last night, I just pried open the door to the most closed and stubborn market in the world for you. That door was only a crack open, and it could close at any moment."
"I need the goods. Immediately, right now."
"Whether it's something floating at sea, gathering dust in a warehouse, or even a half-finished product that's just come off the production line, as long as it has power and can run the TCP/IP protocol, load it all onto a ship and ship it to Tokyo."
There was a few seconds of silence on the other end of the phone, followed by the rustling sound of papers being turned over.
"But...the specific purchase contracts and payment methods..." Sandy was still hesitant. For a startup seeking an IPO, such large-scale cross-border procurement was extremely risky.
There is no contract.
Satsuki interrupted her.
"I'll have Frank from SA Investment transfer the money to you right now. Full amount, cash."
"Is a five million dollar advance payment enough to shut your logistics manager up?"
"...That's enough." Sandy's voice instantly became crisp and decisive. "I'll arrange it right away. Also, Ryan (another Cisco founder) asked if Ms. Suzuki Amy is still at the university, given the sheer number of devices and the involvement of backbone network construction... Should we have her handle the coordination?"
"She is in seclusion."
Satsuki glanced at the corner of the table, where a draft of the "Saionji Information System Network Topology Architecture," which Shimomura Tsutomu had rushed out overnight, was laid out and covered with red revision marks.
"Right now, I only have one CTO, Tsutomu Shimomura. He's a genius, but he only has two hands."
"So, Sandy."
Satsuki's voice turned serious.
"I need not only the goods, I also need the people."
"I want your top-notch systems integration team from headquarters. Pack all the engineers who know best how to connect thousands of machines together onto a flight to Tokyo."
Satsuki's fingers tapped lightly on the table.
"NTT is watching us closely. If there are any problems on the first day the system goes live, they'll tear us apart. So I need the best technical support. I want American engineers to sit in the server room in Tokyo and show those Japanese bureaucrats what 'world standards' really mean."
Sandy took a deep breath on the other end of the phone.
"Understood. I will have Ryan lead the team personally. This is Cisco's first battle in Asia, and we can't afford to lose."
"very good."
Satsuki's lips curled into a satisfied smile.
"Send them over. All-inclusive food and lodging, stay at the Akasaka Prince Hotel, and a stipend of five hundred dollars per person per day. Tell them this is a war, and I am their only commander."
"It's a pleasure working with you, Saionji."
"beep--"
The phone hangs up.
Satsuki put down the receiver and let out a long sigh of relief.
She walked to her desk, picked up the dark blue Montblanc pen, and wrote a long list on a piece of stationery bearing the Saionji family crest.
Cisco, Sun Microsystems, Oracle, IBM...
Each of these names represents a tech giant that will dominate the world in the next decade.
At this moment, they were merely barbarians lingering outside Japan's borders.
"Fujita."
Satsuki called softly.
Fujita, who had been waiting at the door like a shadow, walked in.
"Young Miss".
"After this group of American engineers arrived, they were received with the highest standard of hospitality."
As Satsuki folded the letter, she casually gave the instructions, her tone carrying a sweet yet dangerous undertone.
"I want them to feel that a day in Tokyo is more exciting than a year in the dull Silicon Valley. Give them the best wine, the softest beds, and the highest praise."
"When the project is finished, I want half of them to voluntarily resign and stay here to work for me."
"Also, tell Shimomura Tsutomu to pick a few bright young men and have them follow these Americans around, even if it's just serving tea and water. They need to learn all their technology, processes, and even their habits of debugging machines."
Satsuki tossed the folded envelope onto the table with a soft thud.
"We're buying a 'teacher,' not a 'nanny.' Once you've learned the skills, you can get rid of the teacher."
Fujita Tsuyoshi felt a chill run down his spine and lowered his head deeply: "Yes, I understand what to do."
"very good."
Satsuki turned around and looked at herself in the mirror.
"Please come here, Father. Prepare the car; we're going to the American Embassy."
"Ambassador Mansfield helped us a lot yesterday. Today, it's time to return the favor."
……
Two o'clock in the afternoon.
Minato-ku, Akasaka.
U.S. Embassy in Japan.
The sky after the rain was a clear, deep blue, and the Stars and Stripes fluttered in the wind.
The lawn in the embassy's back garden was neatly trimmed, and several white wrought-iron round tables were scattered under the shade of the trees. This is one of the few "enclaves" in Tokyo that are absolutely not governed by Japanese law.
Ambassador Mike Mansfield was not dressed in formal attire, but rather in a dark blue wool cardigan, looking like a kind grandfather you might encounter anywhere. He was sitting at a round table, holding an English newspaper, with a silver tea set beside him.
"Mr. Ambassador."
Shuichi Saionji entered the garden, guided by Marine Corps guards.
He wore a well-tailored dark gray striped suit, carried a black top hat, and walked with a steady gait. After several years of experience, this once somewhat indecisive former head of the Chinese family now exuded a convincing authority.
"Oh, Mr. Shuichi."
Mansfield put down his newspaper, took off his reading glasses, and stood up with a smile.
"It's nice to see you. Did you sleep well last night?"
"Thanks to you, I slept very well."
Shuichi bowed slightly, grasped the ambassador's outstretched hand, and then sat down in the chair opposite him.
"I heard that the Ministry of Posts and Telecommunications has revoked the administrative penalty and issued that special license." The ambassador personally poured Xiu Yi a cup of black tea. "It seems that Mr. Yutt's (the U.S. Trade Representative) phone call was very effective."
"It's not just effective, it's absolutely devastating."
Shuichi took the teacup but didn't drink from it. Instead, he gently placed it on the table.
"But, Mr. Ambassador, I know there's no such thing as a free lunch in this world."
He raised his head and looked directly at the veteran diplomat who had been a prominent figure in politics for decades.
"The reason the US government is willing to intervene is not to protect a small Japanese convenience store, but to protect US interests. It's about opening up the closed Japanese market."
Mansfield's smile deepened. He appreciated this directness.
"You're very smart, Shuichi-kun. Or rather, the 'advisor' behind you is very smart."
The ambassador leaned back in his chair, his hands clasped together.
"Those people in Washington have reached their limit of tolerance for Japan's 'non-tariff barriers.' They need a breakthrough, a Trojan horse that allows American technology to penetrate unimpeded."
"The Saionji family is willing to be that guide."
Shuichi took a white envelope from his pocket and pushed it in front of the ambassador.
"This is our sincerity."
Mansfield picked up the envelope, opened it, and pulled out the letter.
He glanced at it, raising his eyebrows slightly.
That was a purchasing list.
It contained not only Cisco routers, but also IBM mainframes, Motorola communication modules, and Sun workstations.
At the very bottom of the list is a promise:
Saionji Information Systems Co., Ltd. (SIS) has committed that, over the next five years, all its subsidiaries will prioritize the procurement of core network architecture and data processing equipment that meets US technical standards. The total procurement amount is expected to be no less than…
The ambassador looked at the number.
One hundred million US dollars.
In this era of intense trade friction between Japan and the United States, this order is a pledge of allegiance.
"A big investment."
Mansfield put down the list and tapped his fingers lightly on the paper.
"But, Mr. Shuichi, simply buying things isn't enough. Major Japanese trading companies can buy, and even more. Why should we support you?"
"Because they buy them to disassemble, imitate, and then create cheaper alternatives, ultimately driving American goods out of the market."
Shuichi's voice was calm as he repeated the words Satsuki had taught him.
"That's how NEC does it, and that's how Fujitsu does it. This is how Japanese companies survive."
He leaned forward, his refined eyes gleaming.
"But we are different."
"The Saionji family doesn't manufacture hardware, routers, or chips. We're just an application provider."
"What we need is the best, fastest, and most stable technology to support our business empire. As for whether this technology was made by Americans or Japanese, I don't care."
"But..." Xiu paused, "Unfortunately, in this field, American technology is indeed ten years ahead of Japan's."
"Therefore, we will continue to use American products. Moreover, we will establish a set of standards."
Xiuyi extended one finger.
"S-Food, Lawson... these companies that control the Tokyo convenience store market, their back-end systems are now in the hands of the 'Saionji Information System'."
"If we stipulate that the system's interface is only compatible with Cisco's protocols and only supports IBM's data formats."
"Then, this is not just my purchasing activity anymore."
"This will force the entire Japanese retail, logistics, and even financial industries to follow this standard."
"Mr. Ambassador."
Shuichi looked at Mansfield and said in a deep voice.
"I'm helping you... set the rules."
The garden was completely silent.
Occasionally, a few birdsongs could be heard from the treetops.
Mansfield looked at the man before him. He had met countless politicians, businessmen, and lobbyists, but few could play the role of "comprador" with such confidence and even a grand strategic sense as Mansfield.
What he wants to do is become the gatekeeper of Silicon Valley in Asia.
Any American high-tech company that wants to enter the Japanese market, if it doesn't want to be played to death by the bureaucrats of Kasumigaseki, or have its technology stolen by Japanese zaibatsu, has no choice but to follow his path.
Mansfield remained silent for a long time.
He picked up the cup of black tea, which had gone cold, took a sip, and then put it back on the table.
"very good."
A satisfied, even approving smile appeared on the old man's face.
He folded the list and put it in his shirt pocket.
"Mr. Shuichi, I will have this list faxed directly to Representative Yutt in Washington."
"I think seeing this will calm him down."
"in addition……"
The ambassador stood up and extended his hand to Shuichi.
"Next month, the U.S. Chamber of Commerce will be hosting a 'Japan-U.S. High-Tech Cooperation Forum' in Tokyo. The president of IBM and several Silicon Valley investors will be attending."
"I hope you can attend as a special guest."
"I'd like to introduce you to a few friends."
Shuichi also stood up and grasped the wrinkled hand.
"It would be my great honor."
……
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