NCCnovel Chapter 266 Happy Cooperation
Chapter 266 Happy Cooperation
Washington, D.C., USA. K Street.
A violent summer thunderstorm is ravaging this city of politics and power.
The rain, like a dense barrage of bullets, pounded hard on the roof of the extended Lincoln armored limousine, producing a series of dull thuds.
Keigo Saionji sat in the spacious back seat.
Only a dim reading light was on inside the carriage.
He held a thick English legal document, dozens of pages long, and was checking the terms one last time by the dim light.
My gaze lingered on the supplementary terms page of the contract.
According to the final instructions from the Tokyo headquarters, this investment of up to two billion US dollars came with a concession that was extremely unusual in traditional business mergers and acquisitions.
As the investor, SA Global Engineering & Logistics Group will unconditionally relinquish all voting rights in the target defense private equity fund and voluntarily divest itself of all technical access rights related to Pentagon defense outsourcing projects.
As an elite bureaucrat who had cultivated his career in the heart of North American politics for a decade, Keigo knew the devastating impact of such a concession on K Street in Washington.
Those defense industry private equity partners, comprised of retired generals and former cabinet aides, have always been wary of infiltration by funds with Asian conglomerate ties. This is typically a formidable national security barrier within the Pentagon's compliance review network.
However, this agreement, which proactively severed all control, bypassed all administrative barriers through a pure exchange of interests.
Once the control and auditing rights at the lower levels are handed over, this two billion dollars becomes a politically risk-free "blind fund." The partners can then use this massive amount of non-voting capital to secure lucrative outsourcing contracts from the Pentagon, comfortably earning high management fees and profit sharing.
What the Saionji family really wanted was simply to use these partners' political connections on Capitol Hill to obtain a few legitimate war zone logistics stamps for the "Asian engineering and medical relief employees" who were about to be sent to the Middle East.
Keigo closed the heavy legal documents.
This is really crazy... but very efficient.
"Sir," the driver in the front seat slowed down, "we've arrived."
The Lincoln limousine was parked in front of a classical building with an extremely understated exterior.
This is a private office location of The Carlyle Group in Washington, D.C.
Security personnel opened the car door while holding up black umbrellas.
Keigo, carrying a black leather briefcase, stepped into the rain and through the heavy revolving glass door.
Ten minutes later.
A private meeting room on the top floor of a military-industrial private equity consortium located in the middle of K Street.
Keigo sat upright on one side of the conference table.
Sitting across from him were two white senior partners with deep Pentagon connections. They had previously held key positions in the Department of Defense and the Senate Armed Services Committee, respectively, and now represented the top military-industrial lobbying force on the street.
The partner on the left flipped through the preliminary letter of intent for investment that Keigo had submitted. His gaze lingered for two seconds on the name of the investor at the top of the document. Then, he placed the thin pages back on the marble coffee table and leaned back in his leather chair.
"Mr. Saionji, before we discuss this letter of intent, we need to confirm a basic premise." The partner on the left crossed his arms, looking directly at Keigo across from him. "You are based in Washington, and your resume identifies you as a senior bureaucrat in the Japanese Ministry of Foreign Affairs. Sitting in this conference room today, do you represent the will of the Tokyo Cabinet, or the private interests of the Saionji Zaibatsu?"
Keigo remained expressionless. He removed his gold-rimmed glasses from his nose, took a velvet handkerchief from his suit pocket, and very slowly wiped the lenses.
"I am currently on a one-month private leave. My bureaucratic status is temporarily on hold."
He put his clean glasses back on, placing them flat on the smooth mahogany table with his hands folded over each other.
"Today, I am speaking only on behalf of the funder – SA Global Engineering & Logistics Group."
The partner on the left nodded slightly. He extended his index finger and tapped the cover of the letter of intent on the coffee table twice, neither too lightly nor too heavily.
"Very good. Purely commercial capital, which makes our conversation much simpler."
His fingers hovered over the paper, his body leaning slightly forward. His elbows rested on the armrests, his gaze sharpening instantly, and his speech slowing accordingly.
"Mr. Saionji. A cash injection of two billion US dollars... that's certainly a figure that's hard to refuse."
"But in Washington, massive Asian capital is often accompanied by extremely high national security barriers. The Pentagon has always maintained the highest level of vigilance regarding the equity penetration of military-industrial private equity."
He looked at Keigo with a cold, hard gaze.
"If you are trying to use this huge sum of money to gain a seat on the board of directors of the fund, or the right to access classified projects... I don't think this transaction will get approval from the Committee on Foreign Investment in the United States (CFIUS)."
Keigo remained unmoved by his partner's blunt questioning.
"We were well prepared for the concerns regarding compliance review."
Keigo unfastened the brass clasp on his black leather briefcase and took out the formal limited partner (LP) agreement bearing the seal of a top Washington law firm.
He smoothly pushed the heavy agreement across the smooth mahogany tabletop.
"Gentlemen."
"We will unconditionally relinquish all voting rights and confidential auditing rights of the fund. All management fees generated during the operation of this two billion US dollars, as well as subsequent performance-based compensation, should rightfully be enjoyed by an institution like yours with domestic confidentiality qualifications."
The air in the conference room seemed to freeze for a moment.
The two partners' eyes immediately fell on the harsh terms that proactively severed control.
"Our only compliance requirement."
Keigo pushed up his gold-rimmed glasses and spoke in a deep voice.
"We hope that you can use your resources on Capitol Hill to help us obtain legal war zone logistical clearances and identity registrations for our Asian civilian engineering and medical relief employees who will soon be deployed to the outskirts of the Middle East."
Quiet.
Upon hearing these extremely unequal terms, the partner on the left stopped flipping through the papers.
Their gazes met briefly and discreetly in mid-air.
His polite smile remained unchanged, but his gaze was fixed on Keigo's glasses.
"Mr. Saionji".
His tone remained polite and gentlemanly.
"From a business perspective, your decision to relinquish such substantial control and profit sharing in exchange for a few peripheral labor permits seems to lack a reasonable motivation."
He looked at Keigo with a smile.
"You must explain to us the true intentions behind this move."
Keigo stared at the two of them expressionlessly and slowly uttered two words.
"Political hedging."
Keigo's tone was neither hurried nor slow.
"And... to buy a ticket for a geopolitical situation that could deteriorate at any time."
He looked at the two people opposite him.
"As you both know, the recent unusual troop buildup and movements on the Middle East border are far from normal. If a regional conflict breaks out, it will inevitably endanger the lifeline of global oil, and Japan, which is extremely dependent on oil imports, will be the first to be affected."
"To be honest, based on our intelligence, the possibility of third-party intervention is extremely small. At that time, your government, as a model of maintaining international peace, will surely take the lead in forming a multinational force for armed intervention."
"However, constrained by our country's Peace Constitution, even though Japan is one of the biggest beneficiaries of this operation, the Tokyo cabinet is unable to send a single soldier overseas. If this were to happen, not only would Japan's international image be severely damaged, but your government would also find it difficult to explain to its domestic voters, wouldn't it?"
"This is something neither of us wants to see."
Keigo leaned forward slightly.
"Therefore, in order to avoid a situation that neither side wants to see."
"The Saionji family decided to fund and send a group of civilian employees who are not in military uniform to undertake dangerous engineering and rescue work on the outskirts of the war zone at this critical juncture."
"This can both silence public criticism for the Tokyo cabinet and alleviate some of the risk of injury and public pressure on the citizens of Washington for politicians."
"At the same time, securing entry by identifying ourselves as a 'civilian aid' organization in advance is also a way to gain an advantage in infrastructure cooperation during the potential post-war reconstruction market."
Keigo crossed his arms in front of him.
"This two billion dollars in profit concession is the deposit we paid for this ticket."
After listening, the partner on the left picked up the black tea in front of him. He didn't drink it immediately, but instead gently stirred the floating leaves on the surface of the water with the lid.
"Spending money to take the fall for politicians, gaining political capital for yourself... and incidentally securing a good position in future reconstruction projects." He placed the teacup back on the tray, a smile playing on his lips. "Mr. Saionji, this is indeed a very classic script. Politicians in Washington love to hear stories like this."
He extended his index finger and tapped it lightly twice on the mahogany table.
"However, giving up all two billion dollars in profits..."
The partner leaned forward slightly, his gaze fixed on Keigo's face.
"Just to buy a few work permits for the outskirts of the war zone? This 'toll' is far too high a premium. If we just submit the agreement like this, those difficult guys in the compliance department won't buy into this high-sounding political story."
The smile on his face did not fade.
"We need a motivation that can completely convince them and that truly appeals to capital."
Keigo's expression darkened.
He frowned slightly, reached out, and pulled the limited partnership agreement back from the table.
"Gentlemen, the contents of the agreement and our demands are all written down. I have nothing more to say."
"Since you show no sincerity, we need not force you to do anything."
Keigo stood up decisively, deftly buttoning his dark suit jacket. He shoved the agreement back into his briefcase and turned to walk towards the conference room door.
"Mr. Saionji, please wait a moment."
The partner on the right spoke up. He gently placed the burning cigar on the edge of the ashtray.
"We highly value our friendship with the Saionji family. However, if you cannot clearly explain the strategic intent behind this funding today..."
The partner leaned back in his chair, watching Keigo's retreating figure.
"For the safety of the fund itself, we can only submit a risk report to the Securities and Exchange Commission. We are requesting a comprehensive compliance review of the Saionji family's recent cross-border fund movements in North America."
Keigo's steps abruptly stopped in his tracks.
The partner smiled, looking at Keigo's slightly clenched fist.
Still young after all...
A full five seconds passed.
He slowly turned around and walked back to the negotiating table to sit down.
"call……"
Keigo took a deep breath.
"Even if you force me, it won't help."
"This is beyond my authority; I must ask for permission."
The American partners exchanged a smile, and the partner on the right extended his right hand, making a "please go ahead" gesture.
Keigo gave the other person a deep look, and in front of the two of them, he took out a heavy cell phone from his briefcase.
With a solemn expression and a furrowed brow, he dialed the local number of his secretary stationed in the United States.
The line is connected.
Keigo straightened his back instinctively. He lowered his head slightly, adopting a respectful posture.
He switched to Japanese, which is spoken very slowly and has complicated honorific suffixes.
「はっ……このようなfoldに元尊聴をianoわせますこと、成に Fear Extremely Joyful Savingsじます. (Yes...it’s really scary to alarm you at this time.)”
Keigo's brows were furrowed tightly.
"Regarding the bottom line concessions for Plan B... Yes. I implore the head family to approve a compromise with the traditional Japanese landmark at the fourth coordinate point of the special zone."
There was a two-second pause on the other end of the phone.
Keigo closed his eyes, his Adam's apple bobbing with difficulty.
"It's simply irreplaceable. We must use a Kanto-style formulation, and... I humbly request your approval for double the amount of protein supplements."
The two American partners opposite him leaned back in their leather chairs, quietly watching the Japanese bureaucrat.
What's this? Is it some kind of internal code?
Their Japanese wasn't very good to begin with, and Keigo used a lot of outdated honorifics, making it even harder for them to understand.
Judging from his posture, the other party must be a high-ranking member of the Saionji family.
A full five seconds passed.
"...Thank you very much for your understanding and decisiveness. Then, please deliver the goods within thirty minutes. Yes...excuse me."
Keigo took the phone away from his ear and pressed the hang-up button.
He exhaled a long breath, closed his eyes, and rubbed his temples.
"Japan's large trading companies and heavy industry giants have huge investments in oil refineries, desalination plants and infrastructure in the Middle East."
Keigo's voice was very low.
"Once war breaks out, multinational insurance companies will immediately refuse to provide coverage, and regular commercial security personnel will flee the war zone en masse. The overseas assets of Japanese companies will be completely unprotected, becoming high-net-worth abandoned assets without any protection mechanisms."
Keigo's lips curled into a cold smile.
"As long as the Saionji family holds the only legitimate 'logistical support' permit in Japan backed by the Pentagon, we can take over and 'protect' the assets of these domestic colleagues in the Middle East."
"In the extreme circumstances of war, the Saionji family collected protection fees from their domestic counterparts, and profited from acquiring valuable assets that couldn't be taken with them at a significant discount..."
He looked at his two partners across from him.
"It will far exceed this mere two billion US dollars in entry fees."
The muscles in the two partners' faces completely relaxed. They looked at each other.
The partner on the right raised his whiskey glass and gave Keigo a slight toast.
"Mr. Saionji. In Washington think tank reports, large Japanese corporations have always been known for their 'escort fleet' model of sticking together for mutual support." He took a sip of whiskey, his gaze lingering on Keigo's face. "But now it seems the Saionji family prefers the Wall Street way of eating."
The partner on the left smiled and picked up the pen from the table.
"The Carlyle Group is very willing to provide a compliant pathway for such business plans with high expected returns."
He removed the pen cap.
The iridium nib of the fountain pen glides swiftly across the thick paper.
The rustling sound was extremely clear in the quiet meeting room.
Two English signature letters in a cursive style landed at the end of the agreement.
Keigo leaned back in his chair, watching the other person sign the document.
Finally... they fell for the trap.
The three reasons he revealed were all authorized in advance and could be made public.
What truly needs to be covered up remains hidden behind these three real reasons.
This security team is tactically positioned internally as a "Highly Mobility Field Medical Service." Its deployment to the edge of a real war zone aims to provide this private armed force with initial combat experience.
Furthermore, in the event of a large-scale armed conflict, if high-value coalition personnel are trapped in dire straits, this elite force, unconstrained by cumbersome official procedures, possesses the prerequisite for conducting frontline rescue operations.
The young lady's arrangement seems to be an intentional attempt to establish a good friendship with the Americans.
As for the two billion US dollars of private equity investment in the military industry, it was indeed just a legal container for establishing the limited partner (LP) status.
Once the Middle East war breaks out, the call options that the Saionji family has established in advance in the over-the-counter (OTC) crude oil derivatives market will translate into enormous profits. These profits, gained from the bloodshed of the United States war, will inevitably invite transnational repercussions from Washington regulators.
This military-industrial private equity firm, which voluntarily relinquished all control, served as the highest level of cover.
The offshore dollars, tainted with the smell of crude oil, will be injected into this fund in batches, legally transforming into underlying shares of the US military-industrial complex. The massive amount of non-voting capital will generate substantial management fees and performance-based pay, flowing steadily into the pockets of K Street politicians and retired Pentagon generals.
They welded the vested interests of Washington's elites together with the Saionji family's funds.
In the future, when the Commodity Futures Trading Commission (CFTC) attempts to delve deeper into the true source of this oil price gouging, those interest groups, driven by a protective instinct, will proactively use their political privileges to block any sanctions bills targeting the Saionji family on Capitol Hill.
This is the complete picture of the Satsuki Project.
The aim is to achieve multiple predetermined goals through a single action.
The partner on the left looked at his signature with satisfaction.
He stood up and extended his right hand across the mahogany conference table.
Keigo also stood up and extended his right hand.
The two held hands tightly, both smiling.
"It's a pleasure working with you."