Secretary Steinway spoke for the hosts. “At present the President is planning a televised speech to the nation next Wednesday. Formal legislation will arrive that afternoon. Chairman Coleman will be briefing the Federal Open Market Committee in full at their meeting the previous day. I want to thank you all for being here. May this day mark a new milestone in co-operation in doing what is best for our country.
“And let me reiterate this. Cooperation in this matter is of utmost importance. There is no room for grandstanding. The President will not tolerate that, nor will he tolerate addenda. I speak for him personally when I say that he doesn’t want to resort to strong arm tactics on this matter, but if need be he can and will take the gloves off. It’s that important.”
Then, with a curt nod, Steinway rose and shook hands around the table as he headed for the door. There was nothing more to say.
CHAPTER SEVENTEEN
GRAHAM AND EDITH SPENSLEY WELCOMED Ben into their home as if he had seen them only last week. That was the thing about old friends. He and Bernadette always dropped by whenever they came to London, but only imposed as house guests when Edith insisted. And this time she had insisted that Ben stay with them. It made things so much easier. Ben was here relatively incognito and a meeting with Governor Li at the Spensley’s home would not attract a gaggle of reporters.
After the requisite kisses on each cheek, Edith said, “Ben, I know you have to grab a nap and a shower. Those overnight flights are so tiring. And the jet lag is horrendous, especially flying east. Your room is at the top of the stairs on the right, as usual. I do insist that you make yourself right at home.”
“Edith, I can’t thank you enough. And you were most generous in hosting Governor Li for tea this afternoon. And of course, Bernadette sends her love.”
“Yes, I know. A pity she couldn’t make it, but I know how frustrating it is when illness changes your plans.” Edith knew better. Being Lord Covington’s daughter let her sniff out a ruse in an instant. But that same pedigree meant she would stay quite discreet about it. “Tell me, Ben, I do hope she is not working too hard. These are very curious times. I did see in the papers that she and the First Lady are now the best of friends and that you and the Turners dine regularly together. That must be a good source of information for her novel.”
“Edith, how can I carry on a conversation with you? You know everything already.”
“Well, almost everything. You know one of my proudest achievements is introducing you and Bernadette? Oh, but do listen to me go on. You must be exhausted. I’ll leave you to your nap. We won’t bother you until two. I believe a Bank of England car is picking you up at three-thirty, though there is more to it than that. Dinner is planned for eight.”
Actually, a Bank of England car was driving, but it contained Governor Li. The same car would then depart from the Spensley’s garage and return to BOE. Governor Li had arranged it all. This was to be a truly personal meeting between Coleman and Li, who would be coming to the Spensley’s for dinner.
* * *
Li Xue, Governor of the People’s Bank of China, arrived at the Spensleys at three-thirty. Edith was at the door to greet her guest, who entered through the pantry from the garage. “Governor Li, so wonderful to see you.”
“It is my pleasure, Mrs. Spensley,” Li said. “Your hospitality is much appreciated. A venue for a discreet and candid conversation is hard to come by.” He bowed slightly.
Edith hid her surprise. That was a remarkably direct comment with no diplomatic niceties. He might as well have said, “Let’s get on with the meeting.”
Ever the good hostess, she obliged and led him to the library where Graham and Ben were seated. After pleasantries Graham and Edith gave their apologies and left the two men alone.
Li began by punctuating the urgency of the meeting. “Thank you for accommodating me, Ben. I asked you here in part for personal reasons, for which I must apologize. But I also hope that we can have a free and frank exchange on what is going on within our two governments.”
“Certainly,” said Ben. “You know that I value candor when it comes to our profession.”
Li smiled in understanding. “And may I express my regrets that your lovely wife was not able to make the trip with you.”
“She sends her regrets as well,” Ben said. “Unfortunately, viruses have no respect for friendships or personal schedules.”
“Well,” Li said, acknowledging the lie, “please send my wishes for her recovery.”
“I most certainly will.”
“Let me now begin with a personal request as it will help you understand the gravity of what is happening. My daughter, Jun, has applied to a number of major universities in the United States for graduate studies. She is following in my footsteps and hopes to be an economist. Her original intent was to work in one of the Western financial companies that are opening in Beijing. But events have caused her to change her plans.
“The situation in our government has become quite fragile. A group you Americans call “hardliners” is ascendant. They sense the current uneasiness in global markets as an opportunity not only for economic gains but for military ones as well.
“I know that there are hardliners in every government, yours included. We central bankers tend not to be among them. Our profession is first geared toward maximization of economic well-being. The goal of hardliners tends to be maximization of national power. Those are not totally incompatible, but we tend to believe that national power stems from economic power, or, as Adam Smith noted, the wealth of the nation. The hardliners believe the reverse.
“As central bankers, we also understand risk. It is part of our professional training. Hardliners tend to be ideological and believe that history is on their side. Again, we are both patriots who believe in our nations. So I am speaking very generally.”
He paused, waiting so long that Ben thought for a moment he had missed a cue to reply. But then he could see it in the man’s eyes. This next part was going to be difficult, and he was composing himself.
“I fear,” Li finally continued, “that current events are getting out of hand. The level of risk being undertaken by both sides is far too great. This can only end badly. It may be one side or the other that bears most of the loss, but neither side will escape unscathed. And it very well could be that both sides will lose disastrously.”
Li paused again, this time to gauge Ben’s reaction. The look he saw was sympathetic, but not one that indicated that a sale had been made.
“This brings me to my personal request. I mentioned that my wife could not travel with me. I am sure you surmised why. The hardliners do not want both of us out of the country at the same time. They feel themselves ascendant. And I fear that I share that assessment. You see, if China were to win this conflict, they will be in a position to claim the credit. And if China should lose, then the reason will be given that we technocrats are too Western in our thinking and that a purge may be in order.
“Which brings me to my daughter. I would like her safely out of the country as soon as possible to study in America. Whatever happens to me and my wife, she is all we have. Our one child policy was very much still in force when we were in our childbearing years. Jun is all we leave to posterity.”
Li sat forward, his eyes staring straight into Ben’s. “I know you have connections, particularly at Yale. I was wondering if you could arrange a special letter from one of the senior professors asking her to come over and begin some kind of internship before entering the formal program in September. I know what I am asking is highly unusual. And I am a bit embarrassed to be in this situation. But I am sure you can appreciate the predicament I am in.”
Ben remembered Bernadette saying this day would come. That Li Xue would ask for a favor and that how Ben responded might determine the course of events. Ben decided to proceed in a slow and careful way to obtain what he needed the most—information about Chinese thinking.
“Xue, thank you for being so honest and candid wit
h me. As I am sure you know that is how we Americans like, or at least claim to like, to do business. I am sure Jun will be an excellent economist and has a remarkable pedigree. She will be an asset to any graduate program she will enter. I will be happy to make inquiries and to recommend her.
“But if I may be equally direct, the timing you are talking about does raise some interesting questions. Why so sudden? Are events moving so quickly that she cannot simply come over in August or September when the academic year begins?”
“Ben, you can see what is going on in global markets. Gold is rising more than $100 on some days. The yuan is dropping by nearly two percent per day. These are hardly normal times.”
“No,” Ben said. “They are not. Markets are moving quickly, and we should discuss that. But that is not what I meant. Is your personal situation and that of your family deteriorating that quickly? This trip to London happened very suddenly. And your daughter’s need to leave the country so quickly? The urgency seems extraordinary.”
“Ben, I envy your closeness to the President. I also envy your lovely wife’s closeness to the First Lady. That story about the Chinese restaurant made news in our country as well. Not the part about the spy, but the honor the two ladies bestowed on China by lunching at a Chinese restaurant. All news is manufactured in both our countries. That snippet, properly edited, appeased the hardliners as a bow to the Middle Kingdom and us modernizers as an olive branch for peace.
“I carry no such closeness. I was a compromise choice. Supposedly safe. A technocrat. But I argued against the sale of Treasuries from the start. I warned that it would wake the sleeping dragon. A bit like General Yamashita opposing Pearl Harbor, I suppose. China has made tremendous gains under reform and America has been very tolerant. I know the history. Washington and Tokyo decided that the surest path to peace was to allow us to get rich. And we did.
“As I said, we central bankers appreciate risk. Risk has propelled us from a poor nation, maybe twelfth in GDP, to number one or two depending on how you count it. We are now your economic equal. In another twenty years we will completely dwarf you.
“Perhaps I stated my opposition to the Treasury sale a bit too vehemently. It made me a marked man. Then last weekend our intelligence agency sent a memo to the Politburo that I might be disloyal. There was nothing definitive, no actual charges, no real evidence. But the sort of whisper campaign that goes on constantly. The same thing happens in Washington. But the stakes are higher in Beijing.”
Ben felt a lump in his throat. He had agreed to the deal with Bernadette. Now he was having tea with the man he helped to condemn.
“Xue,” he said, trying to sound settled, “you have never been anything but a total patriot to your country. Your advice was always sound and on the international stage you were a formidable spokesman for China. I can’t believe this is happening.” Except for the last line, it was all true. Ben hoped that the truth in what he said helped camouflage his deception.
“Thank you. But when has truth ever governed the course of politics?”
Ben chuckled. In this context Xue’s comment was a bit of gallows humor. He knew at that point that he would have to actually make the offer that he and Bernadette had established in return for the forbearance on removing the bugs. But first he needed a bit more information. “I will see what I can do. I have learned that in this kind of political situation targeting the right person is always the best policy. Would it happen that the man who was advancing those charges of disloyalty be linked to your military intelligence operation? I believe his name is Deng?”
Ben could see his counterpart’s Adam’s apple move in what was obviously a hard swallow. Li Xue need say nothing more.
* * *
Bob and Tom were met at the Chiang Mai airport by Boonsri, a gorgeous woman with the affectation of a tour guide. But in spite of her beauty and the way she carried herself, both men knew she was Lopez’s way of keeping an eye out for them.
“Welcome to Thailand,” she said. “It’s about a two-and-a-half-hour drive to Golden Triangle Park and the bridge to Laos. Customs formalities should be pretty straightforward.”
She put them in a van with a Let It Happen to You in Laos logo. It was an old advertising slogan, but suitably appropriate for the modern version of the area’s tourism.
Safely in the van, Boonsri continued, “Good news, gentlemen. Our information has it that your friend is arriving tomorrow for a little stress-reducing R&R. I am told you have a free hand tactically and I will not interfere. But I do know that you may well need extraction from the situation. I will be here for you. There are closer airports, but none with regular commercial service. If an emergency departure is required, we will do it from there.”
The two men nodded. Then Tom Butler spoke. “Any chance you know of a past victim of our friend? I’ve seen one young man being helped out of the hotel, so I have a sense of things. I’d love to show Bob the sort of stuff we’re getting into. It will be both cautionary and motivating. It would be even better if we could get some pictures.”
“Thought that might be something you wanted,” Boonsri said. “I have arranged for three young men to meet you at one of their homes about ten minutes outside of town. It isn’t pretty, but then, you’re not here for the scenery.”
Minutes after crossing the bridge they pulled onto a side road that led them up a hill lined with small houses made from a combination of whatever was available. Most had roofs of corrugated metal, some were covered with thatch. Small children ran everywhere. Sanitary facilities were generally out back and the town showed no sign of open sewers.
“What do these people do?” asked Bob.
“Work in the fields. Most families used to own their own plot of land but the government took it. They called it “collectivization.” Now the land is owned by Chinese. Native Laotians are not allowed to buy. The landlords live in Ton Pheung. Zhao Wei and his wife Su Guiqin were granted a ninety-nine-year lease on most of this land—10,000 hectares in all. A Laotian family could support itself on one hectare of rice fields. So you get the size of how much they took.”
Bob Franks did the mental math. “That’s almost forty square miles. And a single Chinese couple owns the whole thing? That’s outrageous. How do the people stand for it?”
“Welcome to Laos,” Boonsri said. “The government in Vientiane is bought and paid for by China. Did you notice the patrol boats in the Mekong when we crossed the bridge? Those are owned and manned by the People’s Liberation Army. The casino itself is not the only revenue source. This is also a center for the smuggling of endangered species.
“And opium has not exactly disappeared. It is just out of sight, mostly farmed in small patches in the jungle. The locals do it to support themselves. God help them, though, if they are caught farming on Zhao’s land. They are usually pressed into indentured servitude.”
“Virtual slaves,” said Tom. “That’s why the boys sell themselves. It helps support the family. I can’t imagine being in such need that you could submit to that for a month’s worth of groceries.”
They stopped the van in front of one of the houses along the dirt road and got out slowly, not exactly looking forward to seeing their enemy’s handiwork.
* * *
Edith Spensley knocked on the door to the study where the two men were meeting. She was carrying a multilayered rack of plates that contained everything needed for an English afternoon tea. There were scones with strawberry jelly, a sweetened whipped cream that had just turned to butter, and little sandwiches made of cucumber, tuna salad, and rolled asparagus, each with a heavy dose of mayonnaise. In general, it was an understatement that the British were not particularly good in the culinary arts, but Ben had always thought an exception to that rule had to be made for tea.
“I hope I am not interrupting,” she said.
Spotting the tray, Ben waved her to enter. “Edith, you are a mind reader. Xue, you’re probably familiar with the tradition of an English tea, but I’m not s
ure you’ve seen one at the level that our gracious hostess has presented.”
Xue said, “I have had the pleasure whenever I have been in London. But I doubt I have seen an array as tempting as this.”
Edith simply smiled in acknowledgment. “Do let me know if I can get you anything else,” she said.
“Thank you,” Xue said.
“It’s my pleasure,” Edith said, and made her exit.
Ben looked at Xue. “Edith can arrange just about anything. Do you think she could pull off inserting some common sense into the heads of politicians?”
Xue laughed. “Sometimes I would settle for competence at math.”
Ben realized that since pressing personal matters were finished, this was the time for the business part of the meeting.
“Xue, you are right. The one thing politics can’t change are the laws of math. I’ve done them. And I am sure that you have too. I don’t think you have enough reserves to get to your target. You are not going to be able to truthfully tell your people that the yuan is gold-backed. I calculate you are even going to miss the fifty percent gold-backed threshold that is needed even for plausibility.” It was a dangerous gambit, almost a fishing expedition. But if Xue confirmed it, he would know that the Metropolitan Plan would succeed beyond all expectations.
“Ben, you must be using a Japanese-made calculator, not one of our finer products made in China.”
“Actually, I used a Hewlett-Packard.”
“HP manufacturers its chips in Taiwan. An integral part of China but one still run by a bunch of renegade bandits.”
Ben frowned. Then he sat back in his seat signaling a withdrawal from the personal rapport the two men had established. It was a ploy, but it worked.
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