Chapter 176: The British Conspiracy (Part 2)

Sir Paul Bowen, the Governor of Hong Kong, agreed with all the suggestions. However, when he heard the last one, he shook his head. “We can strengthen oversight, but a complete embargo is impossible. Hong Kong is a free port; too strict controls would harm our interests.”
“Everything here is free. If the French need it, they can pay to buy the supplies the Chinese require. We can only state that all transactions within Hong Kong are completely legal.”
The British commander in Hong Kong was surprised that the Governor opposed a complete embargo on the Black Flag Army. “We must learn from the French. The Black Flag Army still owes them ten million francs for goods.”
“We don’t interfere in specific business matters,” the Governor insisted, unchanged in his stance. “This is a free port.”
In those times, although the great powers were on the same side, their conflicts remained irreconcilable. The British and French were not yet strategic allies; they competed fiercely in many colonies. Their ability to unite was entirely due to the efforts of the British King and his team.
Hong Kong and Saigon were also rivals, so the British commander emphasized, “The French and we share common interests in this regard. If we continue to sell arms, they may be used by our enemies against us. The French have learned a harsh lesson in this regard.”
“I understand, Major General,” said Sir Paul Bowen, an Irish-born Britishman. “It seems we can take action, but as far as I know, the Black Flag Army has its own armory.”
“They have a considerable supply of supplies and can hold out for over half a year even without any aid.” The Governor’s intelligence was accurate: “More importantly, they can manufacture mortars and rifles themselves and produce rifle bullets. Though in small quantities, their quality exceeds that of any armory in the Empire.”
“That’s right. A Dutchman here helped them establish this armory, and he still supplies them in large quantities.”
“Does he evade taxes?”
“No. He’s a law-abiding citizen in that regard.”
“Yes, we protect law-abiding citizens who pay their taxes.”
The Governor had financial concerns. Complete control over military supplies would bring Hong Kong’s trade to a halt, and even control over arms alone would shrink the arms trade.
Among those buying arms from Hong Kong’s foreign firms, there were many gray-market buyers who guaranteed the weapons wouldn’t be used in Hong Kong but still held them illegally.
War had already affected the region, severely disrupting normal trade. The arms trade and its associated military needs had become the backbone of Hong Kong’s economy.
Over the past few years, the Black Flag Army had imported one million pounds’ worth of military supplies from Hong Kong. The French also used Hong Kong as their main supply hub, spending lavishly on everything from mules to cannons.

To cut off supplies to the Black Flag Army and the Chinese, they have recently undertaken a futile effort to purchase in large quantities the rapid-fire rifles, rifle bullets, and other supplies urgently needed by the Chinese. However, this has only caused financial difficulties for the Black Flag Army and had little actual impact. The governor welcomed this competition; even though the French firms demanding the sale of supplies refused to provide military equipment to the Black Flag Army, he saw such wise actions as beneficial in these turbulent times. “Major General, I can request two more infantry battalions from the homeland, so that when you defend Guangdong, you will have eight infantry battalions along with a strong artillery unit. But I must make the homeland understand that Hong Kong is worth defending, and its trade is on the rise,” Sir Baoyun continued. “When the enemy attacks Guangdong, our estimates suggest they can at most send twelve exhausted infantry battalions. Although they are far below European standards, they are still superior to any army of the Qing Dynasty. Therefore, we need more troops.” In Europe at that time, there was a common prejudice against Asians and Easterners. Despite the French suffering successive defeats in Vietnam, the governor and his officers blamed their failures on French incompetence. They still held onto the impressions from the Franco-Prussian War, believing the French to be weak and delicate. If the British were to take part, eight infantry battalions would be enough to solve everything. “Two British battalions? No problem,” the commander decided to concede. “I need British battalions.” “At least one British battalion.” “I need two British battalions to eliminate the enemy. They will send around ten infantry battalions, and eight battalions alone won’t be enough to defeat them.” “I’ll do my best. After wiping out this Black Flag Army force, we can gain complete control.” It must be admitted that their plans were quite close to how things would actually develop. … Desmon’s Trading Company. “I won’t cut off ties with the Black Flag Army. If you don’t buy this batch of rifles, they will definitely end up in their hands.” Many suppliers had signed exclusive agreements with the French and would no longer engage in any business with the Black Flag Army or its agents. But among them, the Dutchman Desmon was extremely stubborn. “It’s not just a business relationship between us; we’re also friends!” “Friends!” he emphasized. “True friends!” A French diplomat also raised his voice. “Mr. Desmon, your support for the Black Flag bandits has seriously harmed France’s interests. The French consulate in Hong Kong will protest to the governor of Hong Kong and demand that you be expelled.” “But even if I leave Hong Kong, I won’t stop my friendly relations with the Black Flag Army.” Contrary to his words, Desmon had bet too much on the Black Flag Army and was now too deeply involved to withdraw. Any trading firm that mentioned him immediately thought of the Black Flag Army behind him, and his company held the largest share in the Black Flag Army’s purchases in Hong Kong.

“The rifles and bullets you sell are killing French soldiers, and the uniforms you sell have become the standard attire of the rebels… Don’t you feel ashamed?”
“No! I won’t feel ashamed. I’m proud of my friends,” Demons said confidently. “You can’t win on the battlefield, and you won’t win in business either.”
Demons glanced at the list on the counter. “This is all the supplies we have for sale. You can buy them, or we can sell them to the Black Flag Army.”
“Shameless!” An envoy rushed forward, ready to strike. “You’ve betrayed the interests of the whites!”
The list Demons showed contained only surplus goods from the warehouse. Even the Black Flag Army, desperate for supplies, showed little interest. Among them were second-hand rifles with serious quality issues, outdated weapons, and some equipment at exorbitant prices.
Yet Demons offered high prices. “I’m a businessman. When dealing with the enemies of my friends, I must ensure I make a sufficient profit.”
“Damn you!” the envoy continued to curse. “Don’t expect to get any orders from France again.”
“Thank you! The orders from the Black Flag Army are enough to support me.”
Desmon said gracefully, “By the way, due to the depreciation of the franc, I only accept Hong Kong dollars and pounds. Dollars can be considered if available.”
The massive issuance of franc banknotes, coupled with the Black Flag Army printing poorly made francs in various controlled areas, severely damaged the franc’s credibility, creating a vicious cycle. Due to the weak value of the franc, French troops in Vietnam had to carry more francs, forcing them to trade at extremely high prices. They spent millions of francs each month in Vietnam, a burden Vietnam couldn’t bear. Combined with the impact of Black Flag currency, large amounts of francs had to flow into Hong Kong.
Foreign firms in Hong Kong openly admitted that the franc might face a severe devaluation, but they didn’t publicly refuse to accept it. Yet Demons openly attacked the French. “I’m not sure if, faced with another defeat like the Battle of Xishan, the franc will become worthless.”
“Even after the defeat at Sedan, France still stood back up.”
A relatively calm diplomat placed his hand on the counter. “France will remember your kindness.”
His words would become historical fact.
Demons ignored his threats until the capable diplomat said the final words: “We’ll buy your goods.”
…
A few hours later, those diplomats left Demons’ firm with murderous looks in their eyes. They had no choice but to buy the inferior, expensive military supplies—otherwise, they would fall into the hands of the Black Flag Army.
It must be said that their operations in Hong Kong were quite successful. At least the Black Flag Army’s access to arms was no longer unrestricted, and they had managed to restrict the Black Flag Army’s access to certain critical supplies.

But led by Desmond & Co. and the China Merchants Steam Navigation Company, there were many trading firms in Hong Kong that maintained relations with the Black Flag Army. What angered the French even more was that this port city had accumulated an excessive amount of picric acid and explosives. The Black Flag Army needed large quantities of picric acid, and their demand was endless. All foreign firms, regardless of their stance, were desperately stockpiling picric acid—even if not for sale to the Black Flag Army, the French would buy it at high prices. The same pattern of stockpiling applied to all materials needed to make explosives and gunpowder, allowing the Black Flag Army to easily obtain whatever they needed—even with exclusive agreements in place, illegal trade still occurred. But for arms dealers, this was the best of times. For Desmond as well, it was a pretty good time. Looking at the money in his account, he said to one of his associates, “Once the money arrives, let’s go to the Governor’s residence.” … “Since we were unaware of Hong Kong’s and Britain’s laws, we accidentally sold a small amount of military supplies to the Black Flag Army. It was completely unintentional, and we are willing to pay a fine.” The French were unaware that their payment had become bribes and a huge fine to the Hong Kong government, but Desmond’s self-awareness won high praise from the governor. “No! Mr. Desmond, I heard you and Liu Yu of the Black Flag Army have been good friends for years. Providing some convenience to old friends isn’t a big deal, as long as the law is followed.” The Hong Kong government had already dealt with several smugglers who tried to sell hundreds of pounds of picric acid and hazardous chemicals to the Black Flag Army at the border; they were severely punished. But Desmond only had to pay a huge fine. This was common in any era. During the war of resistance, the Japanese repeatedly dealt a devastating blow to merchants who sold arms and supplies to the liberated areas and the Eighth Route Army, but they were powerless against large puppet armies that had dealings with the Eighth Route Army, let alone powerful merchants with influential connections. In Beijing, for example, in 1945, the Japanese forces uncovered an unprecedented case of aiding the enemy. Several firms had sold millions of yuan worth of important supplies to the Eighth Route Army over the past few years—a case said to be unprecedented. To save lives, the Japanese forces imposed severe punishments and resorted to their ultimate measure—fines. Desmond also managed to stay safe by paying a protection fee. Of course, he didn’t forget to give generous gifts to all the officials involved, whether Chinese or British. Such is the fate of those who betray their country. Now, Hong Kong’s top arms smuggler was invited to the Governor’s residence to meet with the governor. “Yes, we used to be friends, very good friends,” he said. “I heard you’ve been in contact with them?” “Yes, once.” Sir Baoyun straightforwardly stated his purpose: “Mr. Desmond, the Imperial Government has decided to act as an intermediary in negotiations between the French and you as their friend. The French have agreed, and our friends in Guangxi have also expressed goodwill toward your friends, but…”

He smiled and said, “But I believe you can play a greater role in this regard. Both I and the Imperial Government firmly believe that the Black Flag Army, as an important force in East Asia, deserves the Imperial Government’s attention. I also believe the Cabinet will support your friends in playing a more significant role on the East Asian stage.”
Desmond was somewhat flustered; he hadn’t expected his plans to become clear so quickly. This was support from the British Government! His voice lost some confidence as he said, “I will immediately convey your kind words to my friends.”
“Good!” Baoyun highly appreciated him. “We believe the French are likely to suffer a defeat in Vietnam, and any attempt to stop the rise of the Black Flag Army will be futile.”
“For that reason, I personally assure you that as long as you pay the required taxes and fines, your goods can pass through this port without hindrance.”
“Thank you for your kindness,” Desmond stammered. “Thank you so much! This is the best news I’ve heard.”
Although it required a significant amount of money, Desmond understood what it meant—being able to smuggle arms unimpeded was fantastic.
“Here…” Baoyun lowered his voice. “Can your friends deal with the French in Tokyo as soon as possible?”
“That’s not very realistic; it will take at least half a year.”
No matter how many defeats they suffered, the French still had a terrifyingly strong presence throughout Vietnam. To completely drive the French out of Tokyo and Central and Southern Vietnam would take at least a year, even under the assumption that the French wouldn’t send more troops.
But neither Liu Yu nor anyone else had much doubt that they could win this war.
Baoyun said with a smile, “After achieving victory, we have no objection to the Black Flag Army entering Guangxi, but we don’t want them to enter Guangdong. In return, they must acknowledge all the agreements we’ve signed with the Celestial Empire government and ensure that Britain’s interests in China are not harmed.”
“No problem,” Desmond spoke on behalf of the Black Flag Army. “If they defeat the French, the Celestial Empire’s troops in Guangxi won’t be a match for them. But I can’t guarantee they won’t cross the border—they’re loyal subjects of the Celestial Empire.”
“Given that the current Celestial Empire government cannot protect all of Britain’s interests in China, the Imperial Government has always advocated for negotiations with an efficient and honest new government. For this reason…”
“We propose a division of spheres of influence. The Black Flag Army must not enter areas under our control, and we will also provide them with some financial support.”
“We reiterate that the existing system regarding Britain’s interests cannot be changed. For example, in terms of customs taxes, if the Black Flag Army takes control of certain customs posts, we will send British officials to manage them.”
“I believe my friends will cooperate more closely with you.”
Gradually, Baoyun steered the conversation toward his desired direction.
The Taiping Civil War and the Second Opium War laid the foundation for Britain’s interests in China today, while a new civil war would lay the foundation for Britain’s new interests in China—a Chinese government that only knew how to obey was in Britain’s interest.

“If a humanitarian crisis occurs in Guangzhou, I suggest that the Black Flag forces send no more than six infantry battalions—that’s the limit we can tolerate.” An English army of eight infantry battalions could easily defeat an enemy force of twelve infantry battalions, but if the Black Flag forces sent six infantry battalions, it would be an ideal outcome. The Black Flag forces only had twenty to thirty combat-ready infantry battalions, with about half of them available for mobility; eliminating half of their mobile forces and a quarter of their main force at once would be an ideal outcome. In the subsequent negotiations, the imperial government could let the Tianchao government and the Black Flag forces bid against each other to see who offers the highest price. It would be days of sunshine.