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164: Dragon Country’s offensive posture changes the situation in the Middle East!
Inside the lounge of Jingxi Hotel, Saddam stared at the map of the Middle East on the wall.
His gaze swept across the Arabian River as he pondered silently.
“Mr. President, isn’t it too high for us to directly promise Dragon Country 50% of the oil field development profits?”
“After all, looking at all the Middle Eastern countries, there is probably no cooperation model with such a high proportion of joint development!”
The presidential assistant looked at Saddam and asked, somewhat puzzled.
Saddam had never revealed to anyone about jointly developing oil fields in Iraq with Dragon Country.
So when he proposed this cooperation agreement at the negotiating table, the entire presidential team was very shocked.
“Hmph, what do you know?”
“It’s not that the share we’re giving Dragon Country is too high, but that we need Dragon Country to bind its interests to our Iraq!”
“Moreover, given Dragon Country’s influence on OPEC countries like Saudi Arabia and Kuwait, cooperating with Dragon Country will not only not reduce our oil revenue, but will increase it to a greater extent!”
“And this is a test for Dragon Country; the benefits are laid out before Dragon Country, and it depends on whether Dragon Country has the courage to extend its influence into the Middle East…”
Saddam glared at his private assistant and said.
He never liked to discuss his decisions with others, and even less liked anyone questioning his decisions.
Furthermore, these people in the presidential team simply lacked long-term vision and could not understand his profound strategic layout and multi-layered considerations.
“Due to oil, the Middle East has always been the battleground where the USA and the Soviet Union, two superpowers, contend!”
“Although we are willing to cede a portion of the benefits to Dragon Country, as long as Dragon Country dares to extend its hand into the Middle East, it will inevitably be suppressed by the two superpowers!”
“The two superpowers will never allow a third major power to encroach upon their interests and shares in the Middle East!”
“This tests the courage and strategic vision of Dragon Country’s decision-makers, to see if they have the confidence to contend with the USA and the Soviet Union in the Middle East… If they want to become the third world superpower, cultivating their sphere of influence in the Middle East is only a matter of time…”
“Furthermore, this cooperation also tests whether Dragon Country’s military will truly step in to protect us at a critical moment!”
“If we put tens of billions of dollars in annual benefits at Dragon Country’s doorstep, and Dragon Country doesn’t even have the courage to accept it, then if something happens to us in the future, they will be even less likely to protect us…”
Saddam explained to his assistant and the presidential team with a poker face.
After listening to his strategic analysis, Saddam’s presidential assistant and government team were all profoundly shaken by his far-reaching plan.
The assistant and the government team had initially harbored doubts about the high concession of profits, but at this moment, they finally understood that the President was using oil field interests as a medium to test Dragon Country’s ambition and strength, while simultaneously binding the interests of both sides to secure future support!
This audacity, linking the nation’s destiny to a superpower’s game, left the entire team in awe, completely won over by his heroic courage and precise strategic vision!
Saddam had not only engaged in deep contact with Dragon Country’s military two years prior, forming the National Guard to defeat Iran and reclaim sovereignty over the Arabian River.
And now, he had made an even more profound strategic arrangement!
Everyone firmly believed that under Saddam’s leadership, Iraq and Baghdad would surely become the leaders of the Arab world!
The crowd couldn't help but become even more loyal to him!
...Two hours later, the break ended.
Representatives from both sides re-seated themselves in the conference room.
Saddam looked intently at Peng Lin, tapping his fingertips lightly on the table.
Peng Lin, meanwhile, calmly opened his documents.
His proposal had received approval from Dragon Country’s high-level officials and military, and they were officially expanding their interests in the Middle East!
Although Dragon Country’s conventional military power was not yet sufficient to deploy and deter in the Middle East.
However, the J-16 heavy fighter and Y-20 strategic transport aircraft, which were currently under development, were the source of Dragon Country’s military strength and confidence!
Once these two crucial national assets were developed, Dragon Country would not only compete with the two superpowers for air supremacy, but its heavy combined arms brigades could also be strategically projected to the Middle East to defend its core interests!
Therefore, Dragon Country was now fearless in contending with the two superpowers in the Middle East!
“Regarding the relevant matters of oil field cooperation, our Dragon Country agrees!”
“However, we have two additional conditions!”
“First, we propose that the company jointly invested and established by Dragon Country and Iraq be given priority in obtaining exploration rights for new oil fields within Iraq!”
“Second, we hope that Iraq will open its low-tariff market to Dragon Country’s civilian automobiles!”
Peng Lin broke the silence first, getting straight to the point.
And upon hearing Peng Lin’s words, a smile finally appeared on Saddam’s face, and he let out a sigh of relief.
This young negotiator from Dragon Country had a bigger appetite than he had imagined!
However, this was not a bad thing!
Because the bigger Dragon Country’s appetite, the more confident it proved to be in its own strength, and the more common interests the two sides shared!
“No problem!”
Saddam smiled at Peng Lin, showing goodwill, and nodded in agreement without hesitation.
“Your Excellency, Mr. President, please do not be too quick to agree. Regarding the detailed matters of cooperation in the civilian automobile sector, we also have two proposals!”
“The first proposal is for the Iraqi government to commit to granting Dragon Country’s civilian automobile enterprises the lowest import tariff rate for imported cars!”
“The second proposal is for the two countries to jointly establish an automobile brand enterprise within Iraq, managed by Dragon Country, with all parts imported from Dragon Country at zero tariff, but with assembly and joint sales and profit sharing completed in Iraq!”
Peng Lin looked at Saddam and explained in detail.
Currently, Dragon Country’s per capita GDP was only 195 US dollars, but the average price of cars in the international civilian automobile market was around 10,000 US dollars.
This proved that the market for civilian automobiles in Dragon Country was very limited, and an export strategy was necessary.
In contrast, Iraq not only had a per capita GDP of 12,000 US dollars, but more importantly, its domestic automobile industry was almost non-existent.
According to the demand of the Iraqi market, it needed to import 300,000 cars from the international market every year.
The average selling price of these civilian economy cars was 10,000 US dollars, mid-range comfort cars averaged 20,000 US dollars, and high-end brands averaged over 30,000-50,000 US dollars!
Furthermore, in Iraq, the sales volume of mid-to-high-end brands was significantly higher.
Automobiles are products that place great emphasis on brand value. Dragon Country’s civilian automobile industry was nascent, and even with low tariffs to enter the Iraqi automobile market, it did not have complete confidence to compete with established Western car manufacturers.
Therefore, the best way for Dragon Country’s civilian automobile industry to fully capture the Iraqi market was to leverage the help of the Iraqi government!
Since Iraq did not have a domestic automobile industry, Dragon Country would provide parts, and then both parties would jointly assemble and sell in Iraq, ceding a portion of the profits to the other party in exchange for a larger market!
It was even possible to use this to open up the entire Middle Eastern market!
Although Middle Eastern countries were small, their consumption capacity was extremely strong!
And when these small countries were added together, the market of the entire region was also very vast!
If it could gain a foothold in the Middle Eastern market, then Dragon Country’s national automobile industry would have survived!
The take-off of industry and economy would then be just around the corner!
Saddam, hearing Peng Lin’s plan, showed a rare expression of surprise!
He was even somewhat shocked!
Dragon Country’s strategic courage was far greater than he had imagined!
The other party not only wanted to enter strategic resource sectors like arms and oil in the Middle East, but even had its sights set on the entire consumer market!
This clearly indicated that they were preparing to compete with the Soviet Union and the USA, the two superpowers!
What impressed him even more about this young man was the win-win cooperation strategy he proposed!
The national automobile industry had always been an area Saddam wanted to develop!
Because the rise of any great power is inseparable from the rise of its automobile industry!
But unfortunately, Iraq’s automobile industry had not even reached a nascent state, which had always been a concern for Saddam.
Now, Dragon Country not only wanted to enter the Iraqi market but was also willing to cooperate for mutual benefit. How could this not excite him?
“Good!”
“Since Dragon Country has this courage, our Iraqi government is naturally willing to engage in deep cooperation with Dragon Country’s civilian automobile enterprises!”
“The Iraqi government is not only willing to replace all official vehicles with the jointly established automobile brand, but will also call on its citizens to support cars produced and assembled in Iraq!”
Saddam took a deep breath, trying to calm his excited emotions, and said.
Dragon Country’s long-term strategic vision deeply shocked him at this moment!
Once both sides engaged in high-level cooperation from military to civilian sectors, this would mean that Dragon Country’s influence would officially take root, sprout, grow, and spread in the Middle East!
Dragon Country not only saw through his intention of exchanging oil for security but also leveraged the situation to propose conditions such as automobile exports and exploration rights for new oil fields, expanding military cooperation into a full industrial chain layout!
This layered strategic planning made him realize with a start that his seemingly generous concessions had long been incorporated into a grander game by the other party!
He took a sharp intake of breath; Dragon Country, without a sound, had turned Iraq into a fulcrum for its advance into the Middle East. This profound strategic planning far exceeded his calculations!
He suddenly had a feeling that the Middle East was about to change.