Chapter 77: Tapping Machine

Demons kept things mysterious, piquing Liu Yu’s curiosity: “What exactly is it?”
“Follow me!” Demons already knew Liu Qing’s plans: “I’ll make sure you’re satisfied!”
With that, he bowed, turned around, and led Liu Yu outside. “I’ll take you to see something amazing!”
His “amazing” item was stored in a warehouse a hundred meters away. Hong Kong in that era hadn’t yet reached the point where every inch of land was priceless, so Demons easily rented a large warehouse surrounded by a wall and guarded by several watchmen.
Now, there were two extra watchmen at the door, including a Dutchman who served as the chief supervisor. They kept a tight watch on the surroundings.
There was a French consul in Hong Kong, but even he didn’t dare scheme against Liu Yu. Demons was more concerned about the safety of the goods: “Don’t worry, these goods will arrive in Shanxi without any problems. Guess what they are?”
The warehouse door was opened. The poor lighting made Liu Yu’s eyelids twitch. He saw several machine tools inside, all lubricated with butter, with critical parts covered in oilpaper. “Amazing stuff.”
Over the years, Xiliuying had acquired many advanced machine tools, including some quite good models. Thus, they developed a small engineering system, from forging pig iron to producing steel, which was then used to make entrenching tools, military equipment, and more. Now, they could even produce a highly complex product—bayonet steel.
However, Xiliuying still lacked advanced machines, especially high-end tools like hydraulic presses. Therefore, Liu Yu needed more machine tools, particularly boring machines. But Demons took off his hat and said proudly, “These aren’t ordinary machine tools! Ask again.”
Holding his hat in his hand, he spoke with enthusiasm. Liu Yu could tell that these machine tools seemed different from ordinary lathes and punch presses, but upon closer inspection, he couldn’t figure out their purpose.
It wasn’t the hydraulic press Xiliuying urgently needed, so he asked, “Could it be a boring machine?”
“No!” Looking at the uniquely shaped machine tool, Demons smiled and said, “This is… a tapping machine.”
He added with a smile, “Not an ordinary tapping machine, but a military one!”
As soon as he finished speaking, Liu Yu blurted out, “Bullets!”
Demons smiled even wider. “Behind that is a milling machine, and also…”
He summarized, “This is a complete set of machine tools for making bullets—the best, the most advanced. Even the Jiangnan Shipyard in Shanghai probably doesn’t have such advanced military machine tools.”
Liu Yu let out a long sigh of relief. Just for coming to Hong Kong, this alone was worth it.
It should be noted that in the field of light weapons, manufacturing bullets is crucial, with bullet casings being the most difficult to produce. Among rifles, the barrel is the most challenging to make.
The Eighth Route Army spent eight years in the war before they could produce qualified rifle cartridges near the end of the conflict. Even then, it took great effort to create usable rifle barrels.
Barrels couldn’t be compromised—especially since threading them in that era added even more complexity to production.

In another timeline, the renowned Hualong Zao could manufacture all parts of firearms on his own, except for barrels. If ordinary machine tools were used to craft barrels, they would become jammed and deformed after just a couple of shots, rendering them unusable. The barrels used by Hualong Zao were produced by several laid-off workers from Zhongzhou Machinery Factory, a weapons plant. The case was dubbed “Project 3677” by the police, as 3,677 barrels had ended up in Qinghai. Each barrel was 53 centimeters long, enough to make four Type 54 pistols. During this period, after Li Hongzhang reluctantly signed the Sino-French Treaty, the Vietnamese launched a major uprising a month later. One of the rebel groups even managed to replicate the 1874 French rifle with great success—except that the barrels lacked rifling, resulting in a very short range. Producing qualified barrels with rifling is one of the most difficult tasks in small arms manufacturing. Before the Civil War, many people had to drill the rifling manually, but now Desmond had acquired a complete set of military machine tools. “Dear Liu, I have good news for you—with this, you can manufacture Snider barrels.” The reason for redesigning the old Enfield 1853 rifle into a Snider was that Liu Yu couldn’t produce qualified barrels; his industrial capabilities were only sufficient to make barely usable bayonet steel. But now it was different. Liu Yu understood what this meant: “So, I can make new Snider barrels?” “Exactly!” Desmond loved talking to smart people. “With this equipment, I believe you can produce a hundred qualified barrels per month, not including defective ones.” Liu Yu thought further. With qualified steel tubes, he could try to replicate any type of rifle, even the most advanced ones. But before that, he had a major problem to solve: “What about the barrel steel?” “Don’t worry! I’ve already bought the barrel steel for you.” To produce qualified barrels, one needed specialized equipment such as broaching machines and milling machines, as well as skilled technicians. Additionally, high-quality barrel steel was required—a thing Liu Yu also couldn’t obtain. Throughout the Qing dynasty, no good barrel steel was produced until the Beiyang era, when only a small amount was manufactured. During the so-called “Golden Decade,” the steel industry under the Nationalist government declined significantly, and barrel steel became another major issue. So Liu Yu resolved to buy it: “How much? I need enough to manufacture three thousand barrels, plus accounting for defects.” Even with advanced machine tools, it wasn’t guaranteed that barrels could be made in one go; defects had to be taken into account. But Desmond had thought of everything: “Good heavens, three thousand barrels—where would I get that much? But I’ve worked hard to secure a thousand barrels of steel for you.” Equipment like broaching machines, milling machines, and barrel steel were not only produced in small quantities but were also classified as controlled items in any country. Everyone knew that with these, new rifles could be manufactured—while the other components of rifles required far less precision, and Liu Yu’s bayonet steel was barely adequate.

Moreover, to manufacture gun barrels, ordinary broaching and milling machines are not sufficient; specialized military-grade machines are required. It took Desmond a great deal of effort to obtain these machines. Since the rise of the Heavenly Kingdom Army, Hong Kong has been the largest arms distribution center in the Far East. For the prosperity of the colony, the British turned a blind eye to this situation, which only temporarily ended with the ten-year embargo imposed by the Beiyang government. It soon flourished again with the establishment of the Nanjing government. In the early days of the War of Resistance, Hong Kong was one of the main sources of arms imports for China. However, military broaching and milling machines were also under control in Hong Kong. After some attempts, Desmond finally ordered a batch of specialized machine tools and gun barrel steel in the name of a Japanese person, while making various connections along the way. The stories behind this are enough to fill an adventure novel. “Importing machine tools and steel shouldn’t be difficult, right?” Nowadays, the coastal defense authorities have relaxed restrictions on Liu Yu’s imports, even allowing a certain amount of sulfuric acid and nitric acid to be imported. Xiliuying even imported 100 tons of picric acid, but they would never allow such military machine tools to be imported. Since all machine tools look similar and gun barrel steel isn’t much different from ordinary steel, Desmond made up his mind: “I’ve already taken care of Hong Kong Customs, and I’ve also found an expert to help you manufacture gun barrels.” So everything was taken care of, and Liu Yu was very satisfied. With these machine tools and gun barrel steel, he now had a self-sufficient military industry system. Even if the French blocked all his sea exits in the future, he wouldn’t be worried. The laboratory could produce military materials like nitric acid and sulfuric acid, the armory could manufacture rifles, bayonets, and entrenching tools, and there was an abundance of military uniforms and whips. He had also stockpiled enough supplies for the war. Ten thousand units of medical supplies, 100 tons of picric acid, a certain amount of nitric acid, sulfuric acid, and other military materials, plus these 1,000 pieces of gun barrel steel—“I still need 3,000 gun barrels. Right, considering defects, please handle it for me!” “Sure!” Desmond replied, “Although this is an extremely difficult task, your friend Desmond will do everything possible to meet your needs. By the way, let me mention the price.” “Hmm, including those 3,000 gun barrels, 500,000 francs!” Desmond said it as casually as if discussing a trivial deal: “You can pay with a draft from the Oriental Bank of Commerce.” Scoundrel! How heartless! That was all Liu Yu could think. Just a few machine tools and 3,000 pieces of gun barrel steel cost him 500,000 francs. You see, 500,000 francs would be enough in France for a Frenchman to live comfortably as a rentier, relying solely on interest without having to work. In China, that amount was equivalent to over 70,000 taels of silver. If Liu Yu used this money to buy guns in Hong Kong, he could acquire nearly 10,000 Remington rifles, and even more of the inferior Snider rifles.

But now, Desmond assured him that Remington might not be available, yet Snider’s gun barrels would definitely be available, with almost no risk of receiving defective products—this was the power of machinery. In late Ming times, it took several months to manufacture a good gun barrel.
“Too expensive!” Liu Yu had to shake his head. “I hope to buy other goods too. We’ve been friends for a long time—don’t take advantage of me.”
Desmond replied with a smile, “You have a one-million franc authorization from the Oriental Bank of Commerce. This is only half of it. Besides, don’t you think these machine tools and gun barrel steel are worth half a million francs?”
They were worth it! Liu Yu had to admit that Desmond’s plan was tailored for Xiliu Camp, so they indeed were worth half a million francs—but the price was still too high!
Gun barrels were hard to come by, but that didn’t mean they were extremely expensive. Workers laid off from Zhongzhou Machinery Factory sold gun barrels at rock-bottom prices—just a few dozen yuan each, with the lowest price once reaching ten yuan per barrel.
These lathes, milling machines, and gun barrel steel were also hard to obtain, but not at exorbitant prices. Yet Desmond was determined to get Liu Yu to agree: “How about this? I’ll give you those 2,000 tons of gun barrel steel for free. Think about it—that’s 3,000 rifles.”
The problem was that, according to Desmond’s estimate, producing 100 barrels per month would take 30 months to use up all 3,000 tons of steel. By then, the Sino-French War would already be in full swing. So Liu Yu counteroffered, “200,000 francs. This time, I’ll only give you one million francs—it’s not enough.”
“If it’s not enough, I can lend you the money. The cost of 3,000 tons of gun barrel steel plus the machine tools will be nearly 400,000 francs. At least help me recoup my investment.”
Who would believe Desmond would sell at a loss? Liu Yu knew he would surely make enough profit: “Impossible. 200,000 francs is my bottom line.”
Desmond looked pitiful. “That won’t even cover half of the cost. How about I give you a discount of 3,000 francs…”
“Impossible! 210,000 francs.”
Desmond gritted his teeth. “I’ve always been a legitimate businessman and never engaged in unfair deals. This is my first time taking such a high-risk business venture—just let me make some profit!”
“210,000 francs, final price…”
……
This time, Liu Yu didn’t bring Jiang Ningxue with him. As a result, he was no match for Desmond in bargaining and quickly reached Desmond’s desired price: “500,000 francs is my bottom line. But I’ll give you those telephones and telephone lines, plus six telegraph machines, so you won’t have to spend money on them.”
Liu Yu’s mind was a bit confused. It seemed good to get so many telephones, switches, and telegraph machines. After thinking for a moment, he raised the price slightly: “Add another 100,000 meters of telephone line.”
“Deal!”
“Deal!”
It wasn’t until they returned to the hotel that Jiang Ningxue learned Liu Yu had suffered a huge loss. “How much are those telephones worth… At most 12,000 yuan. Let me negotiate with him.”
But it was too late. Jiang Ningxue could only get an additional 25 magnetophone telephones from Desmond. After that, both sides discussed the details.
Now, wherever Liu Yu went, he had to take Jiang Ningxue with him. All bargaining was now left to her.

He estimated that his bargaining with Demons this time had cost him at least 12,000 taels of silver. Half of the order for one million francs had already been fulfilled, and the remaining rifles and pistols came with official permits, so they wouldn’t take up these precious foreign currencies. Liu Yu wanted to make progress in acquiring artillery instead. The large foreign firms in Hong Kong had a wide range of cannons, from Krupp’s field guns to Gras guns. But unlike rifles, which could be shipped without permits, cannons required official government documents. Of course, Liu Yu didn’t have Huang Zuoyan’s second order; he only had 100 blank licenses jointly signed by the governor of Shanxi and the provincial administrator—after all, Shanxi was already under the control of Xiliu Camp, so such documents could be obtained in any quantity needed. Yet even with licenses issued by the Shanxi government, buying cannons wasn’t easy. They were too large, and any hint of trouble would prompt someone to report them to the French. Moreover, all foreign firms insisted that Xiliu Camp handle the transportation itself. Liu Yu wasn’t interested in front-loading cannons, while back-loading cannons like field guns were too heavy to transport under the open sky. As for the so-called lightweight Gras guns, they still weighed sixty to seventy kilograms and would immediately attract the attention of the French once they arrived at the port. The price of cannons was exorbitant too—each Gras gun cost over a thousand taels of silver. Even with the license issued by the Shanxi governor, they raised the price by another 30%, which left Liu Yu extremely disappointed. High prices were one thing, but Demons’ exorbitant rates were something he could tolerate. However, being forced to handle the transportation himself was truly a problem. Everyone knew that the customs at Haiphong and Hanoi were under French control, and without a license, he couldn’t bring in any arms. He visited several foreign firms several times with no success, and this time his actions caught the attention of the French consul. In response to the arrival of a famous Vietnamese Black Flag bandit leader, the Hong Kong consulate launched a full-scale effort, mobilizing even every Frenchman in Hong Kong. The French consul seriously considered even plotting an assassination. Now, the French consul sat in his office, writing diplomatic letters to the Ministry of Foreign Affairs and the Governor-General of Indochina. “Dear Governor and Minister, Since receiving your orders, I have been tasked with monitoring the activities of Liu, the leader of the Liu bandits, in Hong Kong. He has been there for eight days, visiting several foreign firms that sell weapons. I must say that our diplomatic efforts have suffered a serious setback. According to the latest intelligence, Prince Huang Zuoyan issued a license to these bandits allowing them to purchase 200 rifles and several pistols. The Black Flag Army will also receive a similar number of permits, which is extremely detrimental to our planned expedition. The Liu bandits will purchase these arms through the Dutch firm of Desmon. I asked an old Dutch friend to persuade him, but Desmon does not respect French friendship. He has already obtained these weapons along with sufficient ammunition from other firms. Therefore, I suggest that customs conduct strict inspections upon entry to prevent them from increasing the quantity.”

These weapons have created significant problems for us in governing the protectorate. After these two transactions, the Black Flag Army’s rapid-fire rifles have almost doubled (they originally had about 400 such rifles, with the Liu bandits having 300 and the Black Flag Army having 100; any claim that they possess 500 rifles is untrustworthy). I suggest increasing the expeditionary forces to some extent.

The parliament is considering raising funds for the Vietnamese army. I recommend keeping this information secret to avoid attracting the attention of trivial individuals like that “Tiger” sir, who have always lacked sufficient enthusiasm for France’s colonies and tend to exaggerate the difficulties of the expedition.

However, I must point out to the Governor-General of Indochina that since the bandits have acquired these rapid-fire rifles, the expeditionary forces must be increased. According to the plans outlined by the Governor-General, we could rely on 1,500 soldiers to conquer the entire Tonkin region, which might be somewhat optimistic.

The combat strength of the Black Flag bandits is not great; they are merely a group of untrained bandits who intimidate the populace. Yet they have occupied the upper reaches of the Red River for ten years and are in large numbers. It will be difficult to control the entire Tonkin region with only 1,500 soldiers and a few ships.

But we need not exaggerate the significance of these weapons. My friend Nguyen Huu Minh once suggested to me that the Yellow Flag Army remains loyal to our cause and to France, and I also believe they are trustworthy.

Therefore, my suggestion is to hire two companies of the Yellow Flag Army, along with two to three companies of native Annamese infantry from Indochina (this will not affect order in Indochina), or we can recruit locally in Tonkin. We can arm them with Remington rifles, which cost about $8 to $9 each in Hong Kong. Including uniforms and other military supplies, it will cost only around $10,000. With these auxiliary forces, we will be sufficient to conquer the Tonkin region.

In addition, I must report on Liu’s activities. He is a 16-year-old boy who relies entirely on the inheritance of his predecessors, so he lacks both wisdom and the funds to acquire more weapons. For fun, he and his representatives spend their days playing with telephones, indulging in this toy even all night long. But any sensible Frenchman knows it is merely a toy. They even purchased some obsolete, completely useless machines. I’m glad they waste money on this.

As for war and military affairs, he lacks sufficient understanding. He tried to contact several arms dealers to obtain powerful artillery and machine guns, but was quickly deterred by the prices. He doesn’t realize that artillery is the god of war, nor does he understand the power of machine guns. All he cares about is his wife, seemingly obeying her completely. She is a formidable woman, but her vision is limited.

From them, we can see that the Black Flag bandits are a ragtag bunch with no tomorrow and no future.

We only need 2,000 soldiers (half of whom can be local Vietnamese soldiers and the Yellow Flag Army to save costs) to take control of this country with tens of millions of people. Lord An Ye’s experience has shown us that we need not fear any enemies in this land.
Therefore, I suggest that an expedition is imperative. There is no need to send reinforcements from home; with just authorization, we can rely on our forces in Indochina.
The consul neatly finished writing the report, signed his name on it, then placed it in an envelope and sealed it properly, a smile appearing on his face.
An expedition must be undertaken—the era of conquering Vietnam and thereby allowing French influence to spread into Yunnan and Guangdong and Guangxi is approaching.
He was an old friend of An Ye and remembered clearly that loyal French captain and the great achievements he had made, only to die in an ambush by the Black Flag bandits.
Old friend, France owes you an explanation, an expedition—one that has been delayed by eight years.
Although that was because, after the Franco-Prussian War, France’s colonies had to yield to revenge, times have changed now.
You conquered half of Tokyo with less than 200 men, and now France will use 2,000 men to take control of entire Vietnam, he thought confidently.
The era of conquering Vietnam is upon us.