“If you please,” Bolcke replied.
“Very well. Let me find our chief spymaster, and we’ll speak in private.”
Jintai scanned the crowd until locating a slight, bespectacled man drinking a Heineken beer. Tao Liang was a directorate head in the Ministry of State Security, the agency that handled China’s intelligence and counterintelligence activities. Tao stood talking with Zhou Xing, the field operative from Bayan Obo, who calmly studied the assembled dignitaries. The peasant-faced man subtly alerted Tao that Jintai was stalking him while the general was still halfway across the room.
“Tao, there you are,” the general said. “Come, we have a business proposal to evaluate with our old friend Edward Bolcke.”
“Our old friend Bolcke,” Tao said with an acid tone. “Yes, I am curious to hear his latest offerings.”
With Zhou following, the men crossed the hangar to a small private office. It had been prepared for them with a portable liquor cabinet and a platter of dim sum. Jintai poured himself a whiskey and sat down with the others at a teak conference table.
“May I offer my congratulations, gentlemen, on your latest deployment,” Bolcke said. “It is an admirable day for China’s guardians. In a small way.”
He paused, letting his insult register. “I would propose that tomorrow, however, may bring a revolutionary day to your country’s defense.”
“Are you going to emasculate the Russian and American military for us?” Jintai said, chuckling to himself as he downed the last of his whiskey.
“In a manner of speaking, yes.”
“You are a miner and a petty thief, Bolcke. What are you saying?”
Bolcke peered at the general with narrowed eyes. “Yes, I am a miner. I know the value of important minerals, such as gold and silver . . . and rare earths.”
“We understand the value of rare earth elements,” Tao said. “That is why we manipulate the price by using you as a broker to make acquisitions on the open market.”
“It’s no secret that China holds a near monopoly on the production of rare earth elements,” Bolcke said. “But that monopoly has been put at risk by activity at two large mines outside your country. The Americans recently reopened their Mountain Pass Mine, while Australia’s Mount Weld operations are undergoing expansion.”
Jintai puffed out his chest. “We will always be dominant.”
“Perhaps. But you will no longer control the market.”
Bolcke removed a large photo from his attache case. It showed an aerial view of some smoldering buildings in a desert setting next to an open-pit mine.
“This is the remains of the American facility at Mountain Pass,” Bolcke said. “Their processing operations were destroyed by a fire last week. They will be unable to produce an ounce of rare earth elements for the next two years.”
“You know something about the fire?” Tao asked.
Bolcke stared at him in silence, his lips upturned in a smug grin. He placed a second photo on the table. It showed another open-pit mine in a desert setting.
“This is the Mount Weld Mine in western Australia. It’s owned by the Hobart Mining Company, in which I have recently become a minority shareholder.”
“I understand the Australians have temporarily halted production while they modernize the facility,” Tao said.
“You are correct.”
“That is all very interesting,” Jintai said, “but what does this have to do with us?”
Bolcke took a deep breath and looked down his nose at the general. “It has to do with two actions that you are about to undertake. First, you will underwrite five hundred million dollars so I may purchase outright the Australian mine at Mount Weld. Second, you will institute an immediate ban on Chinese exports of rare earths.”
The room fell silent a moment before Jintai chuckled. “Anything else you desire?” he said, rising to fetch himself more whiskey. “Chief Executive of Hong Kong, perhaps?”
Tao stared at Bolcke, intrigued. “Tell us why we will do these two things.”
“Economics and security,” Bolcke said. “Together, we can control the entire market in rare earth elements. As you know, I broker much of the remaining world output—from places like India, Brazil, and South Africa—which I sell to you, bolstering prices. I can easily contract for long-term delivery from these sources before you announce a halt in exports, locking in those supplies. As for Mount Weld, if you fund my purchase, I will repay you in ore, which you can quietly resell to select trading partners at exorbitant profits, if you so desire. With the Americans out of commission, China will control virtually the entire global output of rare earth.”
“We already control the bulk of the market,” Jintai said.
“True, but you can control it
“You have been a valued trading partner for both minerals and American defense technology,” Tao said. “So—prices are driven up, and we ultimately profit from the sale of the minerals . . .”
“No,” Bolcke said, “you can do better than that. With full control of the market, you can force every global company that uses rare earth elements to consign their manufacturing and technology to China. Every smartphone and laptop, every wind turbine, every space satellite, will be yours. And technology’s the key. Nearly every cutting- edge technology today makes use of rare earth elements, and that will place you in a dominant position for tomorrow’s advances in consumer products and, more importantly, defense weaponry.”
He stared at Jintai. “Wouldn’t you rather introduce the most advanced attack helicopter yourself rather than copy somebody else’s?”
The general simply nodded.
“Instead of playing catch-up with Western technology, China will lead the way. By totally controlling the supply of rare earths, you put an immediate halt to a multitude of Western military advances. New generations of American missiles, lasers, radars—even ship propulsion systems—rely on rare earth elements. By shutting off the supply, you can erase the technology gap. Rather than China copying Western defense technologies, they will be copying you.” Bolcke casually collected the photos and returned them to his briefcase. “As I said, it’s a matter of economics and security. They go hand in hand—and you can dominate the world in both arenas.”
The comments struck a nerve with Jintai, who constantly decried the inferior weapons the People’s Liberation Army fielded. “Perhaps it would be an appropriate time to act,” he said to Tao.
“Perhaps,” Tao said, “but wouldn’t it create havoc with our Western trading partners?”
“It’s possible,” Bolcke said, “but what can they really do? To maintain their own shaky economies, they will have no choice but to partner with you and share in their developments.”
The spymaster casually lit a cigarette with an expensive lighter. “What is in all this for you, Mr. Bolcke?”
“Your actions will increase the profitability of my mineral brokering business. And I trust you will allow me to sell a portion of the Mount Weld output to friendly trading partners at a healthy profit.” He said nothing of his intent to supply the growing black market in rare earth elements from the mine, nor the fact that he could purchase the property for two hundred million dollars less than he demanded.
Tao nodded. “We will take the matter up with the politburo as an urgent priority,” he promised.
“Thank you. In hope of arriving at a mutually beneficial outcome, I have one other item to offer. In the past, I’ve been able to pass along a few military technologies from my U.S. security firm, for which you have generously compensated me.”
“Yes,” Jintai said. “We have already fielded the crowd-control device to quell some incidents of unrest in the western provinces.”
“I have installed units aboard two of my ships, which have been modified to an impressive level of lethality. I will be happy to share these modifications if you are interested. But that technology is inconsequential compared to what I can now offer you.”
He spread two more photos on the table.
“This is an artist’s rendering of the
Jintai gave a curious look, and Tao nodded in recognition.
