Chapter 279: Cooperation with the Hong Kong Government
Yang Wendong replied with a smile, "You can rest assured, Governor. Everything with the Hong Kong Museum is proceeding smoothly. At present, the joint teams have more or less settled on selecting a site near Admiralty."
Over the past weeks, a three-party team — composed of experts from the mainland, the UK, and Changxing Group — had been conducting surveys all over Hong Kong to determine the most suitable location for the museum.
Although it wasn't a massive infrastructure project, Yang had taken a particular interest in it and regularly followed up on progress reports.
Initially, the mainland team had proposed building the museum on the Kowloon Peninsula, mainly considering the convenience of logistics — transporting artifacts between Hong Kong Island and Kowloon required ferrying, which posed additional complications.
However, Yang had directly rejected that suggestion. He knew full well that once the Hung Hom Cross-Harbour Tunnel was completed, this problem would become irrelevant. And even without a tunnel or bridge, a ferry crossing was nothing more than a minor inconvenience.
Eventually, all parties agreed to build the museum near Admiralty, although the specific plot had yet to be finalized.
"Haha, Admiralty is a fine location," Governor Blackie said, nodding with satisfaction. "Densely populated and central. Once the spot is confirmed, I'll fast-track the land transaction process."
Even though he hoped the museum would be completed within his term, he also understood that public projects like this took time and planning.
"Of course. I hope to see the museum completed as soon as possible," Yang replied.
This was a rare window of opportunity — with everything lining up perfectly. At any other time, even if Yang had proposed the museum and the government had agreed, the mainland wouldn't have been ready to supply sufficient cultural relics.
Once it was built, there likely wouldn't be a second museum of this scale in Hong Kong, given the city's size.
"Very well," the Governor nodded.
Yang continued, "Governor, the main reason I've come today is actually to discuss the ongoing drought and water transport issues from the mainland."
"Ah yes, this is becoming a real problem," Blackie said, frowning. "I never expected the drought to become so severe."
In the final years of his term, Blackie had hoped for a smooth ride. A natural disaster like this was the last thing he wanted.
Compared to an economic crisis — which was part of the market's natural cycle and usually didn't require direct government interference — a drought was far worse. An economic downturn might correct itself, but a water crisis threatened basic survival. The colonial administration couldn't afford to stand by and do nothing.
And if the British couldn't ensure water access in Hong Kong, it would not only spark domestic backlash but might also destabilize other parts of the Commonwealth.
Yang nodded. "Precisely why I'm preparing to invest additional funds to purchase more second-hand cargo ships from overseas — to assist with water transportation from the mainland."
"Thank you, Mr. Yang. On behalf of myself, the colonial government, and three million Hong Kong citizens, I sincerely thank you," the Governor said earnestly.
Having the full support of a shipowner made all the difference. With enough vessels, they could transport hundreds of thousands of tons of water per month — maybe not enough to fully supply industrial needs, but enough to ease the burden on residential areas.
Yang smiled. "It's only right. After all, I owe everything to Hong Kong and its people. Now that the city is in trouble, of course I should help."
"I deeply respect that attitude," Blackie replied. Then, after a moment's thought, he said, "I'll make you a promise. If, after the drought ends, you find yourself with too many ships and suffer financial losses, I'll authorize the tax department to grant your shipping company certain tax relief.
This policy will be issued while I'm still in office, under the justification of assisting with drought relief. I doubt my successor would overturn something like that."
The colonial government had long sought to cultivate local Chinese elites — especially those who helped the government or contributed to society. Offering tax incentives was a reasonable, and very effective, gesture.
"Thank you, Governor," Yang replied gratefully.
Low taxes didn't mean zero taxes — and any reduction was welcome.
Blackie added, "Alternatively, the government might compensate you in other areas, such as land. That would be easier to arrange. Once the crisis is over, we'll negotiate further."
The drought wasn't over yet, and no one knew how much Yang would ultimately contribute. Only once the situation was resolved could those details be fairly discussed.
"Absolutely," Yang agreed. "That's a conversation for later. For now, though, I'll need a significant amount of capital to purchase those second-hand ships.
What the Governor may not be aware of is that banks generally dislike financing second-hand vessels. That means I'll need to use my own funds, which puts tremendous pressure on my cash flow."
"You want HSBC or Standard Chartered to provide you with loans for this?" Blackie was no fool — he immediately saw where this was going.
But it was reasonable. When businesses partnered with the government — especially for public-interest projects — it was normal for the government to ask major banks to assist.
Yang was buying ships to transport water and alleviate a public crisis. That absolutely counted as a "public project."
"Yes. If we can get their support, things will move much faster. I could double the shipping capacity in no time," Yang replied.
He could use his own assets as collateral to secure loans from HSBC or Standard Chartered — but doing so would consume his personal credit. And if he leaned on it too much, the banks might become hesitant, especially since they weren't fond of using second-hand ships as collateral.
But if the colonial government made the request, the banks would have to oblige. After all, institutions like HSBC had become de facto central banks precisely because of their cozy relationship with the administration.
Even more important — a government-backed loan would come with lower interest rates. Previously, HSBC had agreed to lend because of the high returns. But with official support, the terms would be far better.
"I'll speak with HSBC and Standard Chartered," Blackie said. "There shouldn't be any problem.
However, any ships purchased using loans guaranteed by the government must be used for water transportation — and the payment terms should remain as they are now."
"No problem," Yang agreed readily.
If he was getting favorable loan terms, then of course there would be strings attached. He had planned to use those ships for water transport anyway — this just added a formal clause to the agreement.
When the drought ended and Hong Kong's water supply stabilized — especially after Dongjiang water arrived in 1965 — those ships would be free to use as he pleased. That's when they'd become part of his long-term global shipping fleet. And by then, the real profits would begin.
"Alright," Governor Blackie said with a sigh, "If only all Hong Kong Chinese tycoons were like you, Mr. Yang, thinking about the well-being of the people.
You don't know — recently, water transport demand has surged, and many shipping companies have used the opportunity to raise prices. Some claim they don't have ships available. I've had no choice but to accept their conditions during critical shortages."
"That's understandable," Yang Wendong said calmly. "They're businessmen, and they're just doing what businessmen do."
This was not something one could blame them for. After all, no one was obliged to help in a crisis.
Especially considering that most of Hong Kong's shipping companies were still British-owned, and those owners had little concern for the lives of ordinary locals. If something similar happened in another country, Yang himself would likely approach it from a business-first perspective too.
As for the few Chinese shipping magnates, they probably couldn't help even if they wanted to — most of their ships were leased out, and without the expiration of those contracts, they had no control over their fleets.
"Still," Blackie shook his head, "I can't help but feel that in a time like this, people should think beyond profit."
"I agree," Yang said sincerely. "Governor, I will continue to do everything I can to support the government's efforts to supply water. But there's also something I'd like to ask for your help with."
"Oh? What is it?" Blackie asked.
"I've established a charity foundation," Yang explained. "Its first mission is to help Hong Kong's poorest citizens get access to basic necessities — food and water.
Among the most disadvantaged groups in Hong Kong, apart from some unregistered refugees, the largest is the population living in the squatter settlements."
In this era, Hong Kong did have refugees, but they were scattered, undocumented, and hard to identify — even the colonial government couldn't keep track of them, let alone help them in any meaningful way.
The squatter communities were mostly made up of earlier waves of refugees who had managed to settle down, build makeshift housing, and form relatively stable neighborhoods. Compared to those without shelter, they were slightly better off.
"That's a wonderful initiative, Mr. Yang," Blackie nodded. "And how can I assist?"
"I need to work with the city's waterworks department," Yang said. "I want to lay pipelines to the squatter zones. Not house-to-house hookups — just communal taps nearby.
My team will manage distribution on-site, ensuring basic access to clean water for those communities."
Using trucks to deliver water might be the most immediate solution, but it was also incredibly inefficient and expensive.
In the short term, yes, it worked. But long term, it was unsustainable. The logistics costs — fuel, vehicle maintenance, manpower — were all higher than the value of the water itself.
Not to mention, Hong Kong simply didn't have enough trucks to spare. And the longer distances, the more the waste. If the drought got worse and more people came out to collect water, truck distribution would be like throwing buckets into a forest fire.
Pipelines, on the other hand, could move water with a hundred times the efficiency.
"That would require a lot of money," Blackie said, clearly troubled. "And the waterworks department is already running low on supply."
"Water isn't the issue," Yang reassured him. "I'm already sourcing water from the mainland. One of my ships will be dedicated to supplying water for this pipeline system.
As for funding — I'll cover it. But I'll need the waterworks team to provide technical assistance. I can't build the pipeline network without them."
The problem wasn't a lack of water — not really.
The real issue was inequality in distribution.
Even during the 1963 drought, the total volume of water in Hong Kong wasn't absolutely insufficient. The government bought large quantities from the mainland, but most of it went to Hong Kong Island and Kowloon's business districts, where residents could afford to pay high prices — to bathe, wash clothes, water their gardens.
Meanwhile, the poor couldn't even drink or cook with what little they got.
The global food crisis worked the same way — it wasn't a matter of absolute shortage, but of unequal access.
Now that Yang was the one transporting water, he was going to prioritize these underserved groups. They didn't need water to bathe five times a day — just enough to survive. Dozens of squatters could consume less than a single family in Central.
Blackie asked, "The water, you can control. But what about the pipeline infrastructure? Who owns it?"
"It should belong to me," Yang said frankly. "If I'm investing, I can't just hand it over for free, can I?
That said, I understand that the waterworks is a public utility. I won't interfere in their operations. Once the crisis is over, if they want the infrastructure, I'm happy to sell it to them at a reasonable price."
Blackie chuckled. "And if they don't want it?"
"They will," Yang said confidently. "Those settlements will eventually be connected to the city water system anyway. This just gives them a head start."
As Hong Kong's economy grew and industry developed in the 1960s, the squatter areas would either be upgraded or demolished. Either way, integrating them into the broader water supply network was inevitable.
Blackie nodded. "Alright. I can approve this plan. And when the drought ends, I'll speak to the waterworks about formally taking over your pipelines."
"Maybe I'll even donate a segment of that pipeline to the museum," Yang said with a smile. "A little piece of history to remember the drought of '63."
Not a bad idea. In fact, by the time of Yang's original life, very few young people in Hong Kong even knew about the 1963 drought.
He had already ordered Oriental Daily to document the crisis — with news reports and photographs — not just for immediate coverage, but to archive it as part of Hong Kong's historical memory.
Blackie nodded with approval. "That's an excellent idea."
Yang added, "And of course, Governor, your name will be mentioned in the historical record of this event."
"Haha, thank you, Mr. Yang." Blackie was clearly pleased.
A drought was an act of nature — not something any official could be blamed for. But if that official took effective action and left a mark during such a crisis, that would be a true legacy.
The museum memorial was just a lucky coincidence of timing. But if Blackie's name became linked with successfully navigating a water crisis, that would be a real historical achievement.
One day, children visiting the museum would read about the great drought — and see his name included among those who helped solve it.
"You're very welcome," Yang said. "This is exactly the kind of thing the museum should preserve for future generations."
Yang had no intention of being a political enemy of the colonial government. Even twenty years later, the mainland's handover negotiations with Britain would be peaceful and based on diplomacy.
As a businessman, Yang understood the importance of building and maintaining good relationships — especially with people in power.
And for a colonial Governor, the best way to win his favor wasn't with money, but with the promise of legacy.
Blackie said, "Very well. I'll hold a closed-door meeting with my internal team. Once everything's clear, I'll get back to you."
"Understood," Yang replied with a nod.
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