Extraordinary Genius - Chapter 263 – Zhang Ruiqiang’s Questioning
After signing the contract, Feng Yu starts to send Kirilenko all sorts of popular daily necessities by train. Kirilenko also promised Feng Yu that the first batch of Tupolev Tu-154 will arrive at Bing City airport on New Year Eve,
The procedures for receiving the aircraft were troublesome. First, the Aviation Factory have to send someone to the factory to check on the planes, and Kirilenko got to settle the paperwork on his side before the aircraft can take off.
When the planes are entering China’s airspace, the aircraft got to contact China’s Aviation department and still needed permission from Bing City’s airport before they could land. There were also lots of minor and complicated details. But Feng Yu does not need to worry about all these procedures as Hou Haitao will be doing everything for him.
When the first batch of 10 Tupolev Tu-154 arrived at Bing City’s airport, staffs from the airline companies were waiting there. All of them were eager to get their hands on the planes.
The people from the airline company based in Shen City arrived first. They took away two aircraft first and transferred the payments to Feng Yu’s Wind and Rain Consulting company account in Hong Kong.
The other airlines took away one or two aircraft each. Those companies that got lesser planes keep rushing Feng Yu for the remaining stocks.
Feng Yu was relieved that the airline companies made full payments and did not try to default. He patiently explained to them that the remaining planes can only arrive next week as Bing City’s airport was not big enough for all the aircraft to come at the same time.
Those airline companies’ leaders start to grumble. Why was Bing city’s airport so small? Why didn’t they build a bigger airport?
The people from Bing City Airport were speechless. The airport size was planned by the provincial government and was not up to them to decide.
Even if the local government approved it, the Party committee also have to give its approval. Now, Bing City only have a few flights a day and why was there a need for the bigger airport?
The representative from Shen City’s airlines was glad that there were there first and got two aircraft. He ignored the complaints of other representatives. Anyway, when the Ilyushin Il-76 arrives at Bing City’s airport, he would also be the first one to get the planes.
One week later, the second batch of Tupolev Tu-154 arrived, and all the airline companies’ representative was satisfied. There were no problems with the planes. Feng Yu also did not sell them second-hand planes as new ones.
Bing City government knew about this business deal, and even some of the provincial government knew about it too. Someone from Bing City was able to procure passenger planes for the country, and they were proud of it. But there were also some areas that the officials were unhappy about. The Provincial government instructed Bing City’s government to speak with Feng Yu.
This task naturally was handed over to Zhang Ruiqiang. Everyone in the City knew that Feng Yu was Zhang Ruiqiang’s man!
“Feng Yu, you are getting more capable, and your business is getting bigger. From the Soviet Union’s industrial machinery to aircraft.” Zhang Ruiqiang didn’t expect Feng Yu to be selling aircraft. It seems that Feng Yu’s connections in the Soviet Union were more powerful than he expected.
“Mayor Zhang, this is just some small businesses to make a living.” Feng Yu smiled.
Zhang Ruiqiang replied in a harsh tone: “A few hundred million RMB worths of deals are considered small business? If this is considered making a living, then shouldn’t I be begging or eating tree bark?”
Feng Yu said: “Mayor Zhang, you are our Bing City’s leader and if you have to eat tree bark, then what will Bing City become?”
“You……” Zhang Ruiqiang pointed out Feng Yu. “Do you know why I call you over?”
Feng Yu blinked and replied: “Didn’t you call me over to have a chat?”
Zhang Ruiqiang: “……” This brat was making him angry. It was almost year-end, and this was the busiest period for him. Who will be so free to have a chat with you?
“I want to ask you two questions. First, where did you get the money for the aircraft? Did you cheat anyone? Second, why did you register a company in Hong Kong and why didn’t you use Tai Hua Trading?”
“Mayor Zhang, don’t accuse me of doing anything illegal. The planes I sold to the airline companies were cheaper than the market rate and were all in good condition. If not, the airlines would have rejected them and not make payments. I had used our Chinese goods to exchange for the planes and then sell to the airlines. How can this be considered cheating? The airline companies are the ones who had gotten the most advantage in this deal!”
“Also, I registered a company in Hong Kong is for the convenience. You should also know that my company exports a lot of products. The traffic condition in Hong Kong was better, and it uses the English legal system. This way, I will not be cheated by foreigners. This aircraft deal is also the same. I am worried that I will be cheated by the Soviets and was prepared to sue them if they cheated me!”
Feng Yu told Zhang Ruiqiang partial truth. Feng Yu was actually worried that the airlines would cheat on him, and he must be prepared to sue them.
“I am guessing that you registered this Hong Kong company was for to reason. First, it is the foreign exchange issues. I had heard that recently, Tai Hua Trading does not have any transactions in Rubles. Secondly, you are afraid that the airline companies will default their payments. Right?”
Zhang Ruiqiang was spot on. But he did not know that this Hong Kong Company was set up for investing in the international financial market.
Feng Yu smiled: “Mayor Zhang, what’s wrong is there to be worried about these things?”
“Why do you not trust your country? You think the country will cheat you of your money?” Zhang Ruiqiang was feeling hurt.
Feng Yu replied earnestly: “If I am doing business with you, I will not be worried. But I am apprehensive when I deal with others. All these money are from the loans I took from overseas banks. If the airline companies default payment, they will be fine, but I will be finished.”
“Money from loans? Which country is willing to loan you so much money?” Zhang Ruiqiang smiled.
“Soviet Union banks. Mayor Zhang, if you don’t believe me, I can show you a copy of the loan agreements.”
Zhang Ruiqiang thought about Feng Yu’s connection with the Soviet Union. He could even get such a significant amount of loan from the Soviet Union.
“There’s no need for that. I trust you, but the higherups are not happy. You had used your Hong Kong company in this deal, how can the government tax you?”
Feng Yu’s eyes widen: “Taxes? It is stated in the contract that the airline companies will have to pay all the taxes. What has it got to do with me?”
But you are selling passenger aircraft, and you get income. You have to pay taxes.”
The Provincial Government Officials were unhappy as this was a few hundred million RMB deals, and the taxes will not be a small amount. But in the end, Feng Yu used a Hong Kong company, and all these taxes went to other countries. Hong Kong was still a British Colony.
Feng Yu walked over to Zhang Ruiqiang’s side and secretively said: “Mayor Zhang, these taxes also will not go to Bing City Government. Why not share with you some information that will make you shine in from of the higherups and we forget about this tax thingy?”