CH26 : Construction or Port

"Shall we start with the highway? What do you think?"

Van Flint, who had suggested doing a puzzle, suddenly changed his tone. It meant he acknowledged me as a negotiating partner.

"Sir, may I answer?"

"Do as you see fit."

As I slightly bowed my head, President Park crossed his arms and watched leisurely. It seemed he decided to trust me this once.

Good, I just need to stay focused.

"You'll be using Korean asphalt, right?"

"Is there even such a thing?"

"A joint venture between Gulf in Ulsan and the Republic of Korea."

We can set up a joint venture to produce asphalt. Historically, joint investments resulted from the US-Korea summit. In this timeline, the Gulf branch manager will be more proactive, so there will be no problem.

"A joint venture, huh? Okay, then does Korea have the technology to build highways?"

"Korean construction companies have paved US Air Force runways multiple times. Highways are a piece of cake."

It would be sufficient to leave it to Hyeonsan Construction. I won't involve myself in highway or apartment construction. The technological barrier isn't high, but there are many non-construction variables that could lead to losses if mishandled. Besides, I did that exhaustively in my previous life.

"Alright, we'll procure asphalt from Ulsan and give Korean companies a chance to bid. So, where will the highway be located?"

"The section connecting Pattani and Narathiwat in Thailand! It's a transportation corridor that pokes into Vietnam's National Route 1. The Thai border is relatively safe, making it optimal for securing a land transport route across Vietnam."

The Pattani-Narathiwat section was Hyeonsan Construction's first major overseas project. While the media claimed it was commissioned by the Thai government, the actual client was the US military.

Van Flint closed his eyes for a moment, seemingly picturing the map in his head. After a while, he opened his eyes with a satisfied smile. Did he memorize the geography of Southeast Asia near Vietnam?

"That's a good idea. So, have you roughly estimated the construction cost?"

"A 100-kilometer stretch of dual carriageway will cost about 6.5 million dollars. The construction period should be about 36 months."

I inflated the estimate by 25% compared to historical figures. This is the normal price and construction period that American companies would consider. If we win the bid under these conditions and shorten the construction period, we can receive a premium.

"For a rough estimate, it's quite detailed."

"I've been thinking about it for a long time."

Van Flint looked at me with a serious expression. Did he think I had been paying attention to the Vietnam War all along? Let him think what he wants.

"Alright. So, where do you think the port should be?"

"Promise to use Korean cement for port construction, provide free steel and other materials from the US military, and rent construction equipment for free. Of course, I'd like Korean companies to handle the military logistics services too."

"We should support that much. However, the construction company should be American."

"Of course."

Honestly, the US will be immensely grateful later if Korean companies handle all the subcontracting. The diligence and sincerity of Koreans are second to none.

"So, where will the port be?"

"We should first build supply ports in Saigon and Da Nang. Of course, the US military has probably anticipated these locations."

"First? Does that mean more supply ports are needed?"

"Of course. At least two more are needed. Especially, it would be disastrous to build fuel storage tanks in Saigon or Da Nang. They wouldn't be safe from Viet Cong terrorism."

"Where then, is the safe location?"

Excited, Van Flint didn't even question the source of my information. That was because what I said so far was top-secret information from the US military's logistics procurement plan. He believed I had reached the same conclusion as the US military intelligence through pure inference.

"This is it."

"This is it?"

"Sir, from here on, an agreement must come first. Once an agreement between the US and Korean governments is reached, I'll submit an official report through the Economic Planning Board."

I spoke as if I were a state secret agent.

"Naturally."

"President Park, let's conclude today's negotiations..."

"General Flint, let's stop here for today. It seems the working-level officials should discuss the agreements first."

The president himself postponed the negotiations. He spoke more like a 21st-century construction project manager than a president.

"If the president says so, then let's do that."

"General Flint, is your stay comfortable? Do you enjoy Korean food?"

"Everything is great. The Korean bulgogi I had for lunch today was delicious. It would have been even better with this champagne."

After that, the two switched topics like politicians, chatting endlessly about trivial matters.

Time dragged on. It had been a while since I could enjoy such fine champagne, so I felt good.

"Sir, you startled me earlier."

"I apologize."

After Van Flint left the Blue House, round two with the president began.

"Apologize? That's right. Because of you, the loan negotiations fell through, so you'll have to pay the price, right?"

The president spoke half-jokingly. He knew well that receiving a written agreement for military modernization and allowing domestic companies to participate in US procurement projects was far more beneficial than a lump-sum loan. Historically, we received quite a few American tanks and fighter jets through this negotiation.

"Just give the order. I'll work to pay it off."

It was obvious why the president was saying this. He had something he wanted me to do.

"I wish everyone could understand like you. So, let me ask you one thing first. How large should the Ulsan petrochemical complex be? I'll negotiate directly with the US president."

"It's simple. Make it ten times the size suggested by the World Bank delegation."

"Ten times?"

The larger the petrochemical industry, the better, and considering it's the 1960s, it should be at least a million tons of naphtha capacity. Gulf's current naphtha capacity is about 90,000 tons per year, so we need to increase it by ten times.

"Yes, ten times."

"Is that realistic? Would the US really make such a large-scale investment?"

"Secure a $150 million loan from the US government and attract joint ventures with companies like Gulf or Dow Corning."

"A commercial loan!"

I suggested involving private companies, and the president immediately thought of a commercial loan.

"That's the way it must be done. Only by pursuing such economies of scale will we gain international price competitiveness and be able to export our products."

"Economies of scale?"

"Yes, as production volume increases, costs decrease. If the production of petroleum products increases tenfold, the unit cost will drop to 50%."

There's no industry where economies of scale work as well as in petrochemicals. From construction costs to maintenance costs, it's no joke.

"If we build a large plant, we can make products at half the cost. Exports will increase, and so will profits."

"Not only that, but power plants and water and sewage facilities will also have to be built larger, improving the living standards of nearby residents."

"Power plants! They will also get bigger!"

The president reacted most strongly to the mention of power plants. The power situation was dire in this era. I was surprised to experience the 1960s firsthand. In Seoul, power was limited by the hour, and even neon signs and street lights were turned off. Show windows had only one fluorescent light, making the streets dark at night. This was one reason why I couldn't conduct night construction in Ulsan due to safety concerns.

"We must expand it tenfold. Will the US accept it?"

"They will. Van Flint is responsible for military supplies, isn't he? Considering the need for gasoline for military vehicles, fuel oil for navy ships, and asphalt for highways, they will invest in Ulsan."

I spoke confidently. The hard part was starting the project. Once it begins, it will prove that the demand forecast wasn't excessive.

"Push confidently, and they'll accept it out of necessity. Is that what you mean?"

"Yes, if you don't want to see Japan supplying gasoline and asphalt."

"Japan? Absolutely not! They took so much during the Korean War!"

President Park stomped his foot and raised his voice. The Vietnam War is our business, he thought. Good attitude.

"When forming a joint venture, there's a crucial clause. Split the shares 49:51 with foreign companies and ensure the Korean government holds the management rights."

"Good point. If they do business on our land, they must follow our laws."

"Yes."

He knew that giving up management rights would allow the joint venture to act extrajudicially. The conversation flowed smoothly. If history unfolds like this, the contract I made with Gulf will be a major success. If I monopolize 900,000 tons of naphtha annually, we can easily surpass Japanese companies.

"Alright. We're on the same page. So, what do you want to take on? Highways? Or ports?"

"Excuse me?"

What are you talking about? Why derail the conversation now? Highways? Ports? I'm a petrochemical plant expert. I'm the president of Daese Industries and Daese Chemicals.

"What? Were you speaking so confidently without any intention of going to Vietnam?"

"I'm a merchant selling nylon fabric. Wouldn't it be most efficient to handle military supplies procurement, particularly uniforms?"

Historically, Hyeonsan Construction led the construction in the Vietnam War. There's no need for me to intervene. Although I'm a 21st-century engineer, I lack the equipment and capital to enter the construction industry. It's wiser to gather capital through the petrochemical business and ride the Middle Eastern construction boom in the 1970s. That's more profitable and safer. Why go to Vietnam when the path to becoming a chaebol is clear?

"That's disappointing. If Korean companies don't lead Vietnam's infrastructure projects, Japanese companies will take over. Should we just watch that happen? We need as many Korean companies involved as possible."

"..."

It's a profitable business, sure. But even participating in the US military procurement project domestically would be a huge success. Why intervene in the military infrastructure project when we're unprepared? I have about $50,000 in spare funds and only around 200 personnel, none of whom are construction workers. It's better to pursue realistic goals than to be greedy.

"Taking over the military uniform business from Japan is the same. Selling 250,000 military uniforms annually starting next year will be a big success."

"Really? Then sell the uniforms and do the construction."

He was surprised by the prospect of selling 250,000 uniforms annually but didn't retract his order to go to Vietnam.

"That's not all. Jungle boots, sandbags, helmets, parachutes, mosquito nets, instant packaging, jet fuel—the export volume of petrochemical products alone is enormous. Let me focus on petrochemicals."

"Do petrochemicals and construction. Choose between highways and ports. Which do you prefer?"

"Sir! Assign other construction companies. I'm..."

"I'm the president. If I order something, there's a reason. Participate in US military construction. By placing our dispatched soldiers under the pretext of construction site security, our soldiers will be safer. They won't have to go to the front lines. Isn't that right?"

"Gasp!"

Why was he so stubborn? Now I understood his reasoning. He wanted to send as many Korean companies as possible to secure the justification for deploying our troops nearby. It was a brilliant idea, one that even I, from the 21st century, hadn't considered.

"Are you going or not?"

He asked again, his face flushed.

"..."

I understood his intention but lacked the courage. Must I risk my life? The scariest thing in the world is a stray bullet.

Bang!

"Answer! It's an order!"

The president slammed the reception table, furious. In this era, no one dared defy the president. If I continued to resist, I wouldn't live to see tomorrow.

"I'll go. I'll go. But I have conditions."

No matter what the president says, this life is mine. I can agree with his intentions, but the final decision is mine.

"Conditions? Speak!"

"There's someone coveting my company. There's also a cooperating prosecutor. Destroy them."

"Really? I'll shatter them to pieces."

"And there's one more condition."

"One more?"

He looked as if saying, "This guy," but I couldn't end it with just one condition. Risking my life and disrupting all my plans required adequate compensation.

"I'll have full authority over contracts with the US military. From establishing the construction company, choosing personnel, and executing the business, I'll make all decisions. The government must withdraw all influence."

"Withdraw government influence?"

"Yes, I'll cooperate with the government when necessary. I'm concerned that political interference will hinder my ability to earn dollars."

"Focus on earning dollars?"

"Yes, if I'm going, I should earn as much as possible."

I needed to distance myself from politics as much as possible, even if I had to be assertive. No more people exerting power over me.

"Alright. That's a commendable attitude. I'll grant everything you ask. Be ready to depart in a month."

"A... a month, sir?"

What? Even in dynamic Korea, asking me to go to Vietnam in a month is too much. How am I supposed to prepare in a month?