The specific negotiation work was handled by the officers of the Navy Command, who arrived only the next morning, because he had to negotiate with many manufacturers, and Tan Renhao was too busy alone, so he could only grasp the general direction and only come forward when other officers encountered problems and problems that could not be solved.

Overall, the first few days of negotiations were not very smooth, but they were not so bad that Tan Renhao wanted to return to the Navy command immediately. The overall feeling of these manufacturers to Tan Renhao is that they have not given up any glimmer of hope for profiteering, and are struggling to the death, but all the representatives of the manufacturers know one thing, that is, under the influence of the domestic trend, it is impossible for them to obtain excess profits, at least the laws that the imperial prime minister is establishing will not give them any benefits, and the navy, after getting the full support of the prime minister, will not give in easily, in the end, there will always be someone who will soften first!

This is actually very much like interrogating a prisoner on the front line, and Tan Renhao also got the hang of it, and from the third day of the negotiations, he instructed to negotiate with each manufacturer's representatives individually, rather than bargaining collectively with them. In Tan Renhao's eyes, these dozen or so manufacturer representatives are like more than a dozen prisoners of war, they are all isolated and interrogated separately, and whoever first confesses useful information can get the hope of survival. This is a very effective trick, as long as one is loose, then the other manufacturers can only follow the price reduction, and it must be lowered even lower, to ensure that it can continue to stay in the list of suppliers of the Navy, rather than being eliminated, anyway, the Navy will eliminate a batch of suppliers every year!

Of course, the negotiation work itself was still very difficult, and Tan Renhao did not know that this was only the first time he had come forward to negotiate on behalf of the Imperial Navy, and this was by no means the last. If the future of negotiations is like competing against your opponent in a competition, now is just a warm-up exercise. And talk about the experience and lessons learned by Renhao in this negotiation. It will be of great help to him in other negotiations in the future. At the same time, Tan Renhao also used some of the experience of the previous negotiations between the German Navy and the Persian Navy, such as reaching a package agreement with the manufacturer, not just reducing the price.

Tan Renhao's proposed methods have been approved by the principal, more precisely, by the principal. Because later Gan Yongxing also used this method in negotiations with shipyards. Fundamentally, the Navy and these suppliers are in a symbiotic relationship, not just a relationship of interest. Suppliers are inseparable from the Navy's orders, and the Navy also needs them to provide local weapons and equipment, ammunition and supplies. This determines that the cooperation between the Navy and the supplier should be a win-win situation. And not zero-sum. The method proposed by Tan Renhao fundamentally solves the problem of conflict of interests, the navy needs to obtain weapons and ammunition at a cheaper price, and as long as the price drops, the navy can purchase more weapons and ammunition, which can also give suppliers more profits. The same. Suppliers must be guaranteed profits, otherwise they will not be able to pay for the purchase of raw materials, pay wages to workers, replace old equipment in a timely manner, expand the scale of production, and produce more and better weapons and equipment. Price reduction is not the only solution, and at the same time, the Navy has to try to make suppliers aware that they can do something else. including the navy, as well as some help from the imperial government to obtain practical benefits. In this way, a win-win situation can be formed, and in the end both parties will get benefits, and ensure that both parties can develop normally.

Because there are already some things that are decided by the government, such as the price of raw materials. the maintenance price of the machine tool, and even the preferential tax policy, etc. The negotiations were temporarily halted after less than ten days, and Tan Renhao also returned to Zhoushan at this time to get the government's final attitude from Nie Renfeng. By early November, Tan Renhao had returned to Harbin again, this time with a "gift" from the government. After Nie Renfeng's support and Yan Dingyu's corresponding measures, Prime Minister Xue Xiyue adopted a partially effective proposal, or a proposal that did not have much to lose for the government. The door to negotiations was reopened.

Relatively speaking, the second round of negotiations will be much easier. By November 7. The Navy first reached a package agreement with Hafei, which also sent a clear signal to several other major manufacturers that if they do not make substantial concessions and a final decision, then it is very likely that they will lose the Navy's order in FY27.

The content of the agreement with Hafei is quite complex, and the Navy has even arranged for several legal experts to do an appraisal to determine that there are no legal loopholes. Of course, in the end, both sides were satisfied.

Hafei guarantees that in FY27, the price of all aircraft supplied to the Navy, as well as supporting spare parts, will be reduced by two to five percent, which is mainly determined by the proportion of Hafei's own production in specific types of aircraft. Among them, the most critical are two kinds of combat aircraft, one is the "Peng" heavy bomber, the unit price of which will be reduced by 30 percent, and there is still room for further reduction. The second is the "Peregrine Falcon" fighter, because the navy has settled the property rights of the "Feng 20" engine, and Hafei directly produces this engine, instead of buying it from Shen Fei, so the price has been reduced by half.

The Navy also made a commitment to Hafei that in the 27th year, Hafei will give priority to obtaining strategic raw materials, including aluminum, rubber, steel and other raw materials closely related to the aircraft industry. In addition, Hafei will give priority to electricity and water distribution to keep the plant running at full speed. Third, the government will reduce the personal tax of Hafei workers by one-third to increase the actual income of workers, and at the same time, if Hafei can complete the navy order according to the contract, the government will also partially reduce Hafei's corporate taxes, which can be regarded as a reward.

The most important of all the Navy's commitments is not these preferential terms, but the Navy's commitment to market their aircraft for Hafei, including the Peng-type heavy bomber, the "Peregrine Falcon" fighter, and the new tactical bomber, which is likely to be designed and flown by the end of '27 and officially put into production. And the target of the sales is Germany, Persia and other allies. The Navy will take 20 percent of the export profits, and the rest of the profits will be used to cover the losses when Hafei supplied combat aircraft to the Navy at a price below cost.

The most critical aspect of this is the price differential between domestic purchases and exports. According to the development and exhibition method of the Imperial Navy, most of the research and development expenses of any kind of combat aircraft are paid by the Navy, and it is only when some manufacturers see that a certain aircraft has huge market potential, they will privately fund the development of new aircraft, such as the "Peregrine Falcon". About half of the R&D funding was provided by Hafei himself. Therefore, when the Navy procures aircraft, it will not calculate the R&D cost evenly for each fighter or the first few batches of fighters ordered. In addition, the cost of raw materials, labor costs, depreciation of plant equipment. In terms of the price of the factory premises, it is basically calculated on a cost basis. In this way, domestic procurement is actually purchasing at cost price. Provided, of course, that no one thinks of making windfall profits from their own army, or from their own government.

Exports are completely different, when any country exports military products. Design and R&D expenses will be taken into account, as well as the profits of the factories and the local tax rates levied by the government. As a result, the price of weapons and equipment for export will be much higher than for domestic purchases. In most cases, countries such as the Tang Empire, which have world-leading technology, export military products. It will also reduce the performance of weapons and equipment to ensure that the armies of other countries cannot obtain better weapons and equipment than their own armies. But even if the performance is reduced and the equipment is simplified, the price is still prohibitively high.

Taking the quite successful "Falcon" fighter as an example, the purchase price of the Imperial Navy was 170,000, and it was reduced to 165,000 in the later period. The models used by the army and shore-based aviation are lower because they reduce the structural strength of the fuselage and cancel the parts of the catapult system and landing on the aircraft carrier, so the price is lower, and the simplest model is only about 150,000, and even the advanced model that has strengthened some parts in the later stage is only 160,000. Can be at the same time. The price of the Empire's exports of simplified versions of the Falcon to Germany, Persia, and other allies was 310,000 yuan, almost double the purchase price of the Imperial Army. These simplified versions of the Falcon fighters were cheaper, for example, the German model had only two 20-mm guns, and the other two were replaced by four 50-inch aviation machine guns. The "Falcon", which was exported to the Persian Empire, simplified the navigation system and at the same time simplified the structure of the airframe. On the contrary, the speed is much faster than the models used by the Tang Imperial Navy, but the cost is much lower.

Considering that the manufacturers had already made a lot of profits when they supplied weapons and equipment to the imperial army, then when exporting weapons and equipment, what they earned was not ordinary usury, but completely profiteering!

It is precisely because of this that Hafei attaches so much importance to this commitment of the navy, which even makes Hafei make more concessions. Of course, Feng Xiangchu's vision is very shrewd, and he knows one thing very well. Whether it's "Peng" or "Peregrine Falcon". Even the new tactical bombers that are still being designed, as long as the Imperial Navy is equipped in large quantities and has excellent performance in battle, then export orders will continue to be sent far away, and the Imperial Government does not care how much money manufacturers make when exporting, because export taxes can also bring more revenue to the Imperial Government. Judging from Feng Xiangchu's own calculations at that time, the profit earned from exporting one "Peregrine Falcon" was enough to make up for the losses incurred when supplying 20 "Peregrine Falcons" to the Navy, and the profits of the "Peng" bomber were even higher. According to the general situation, the proportion of exported fighters is generally about 20%. Export profits can not only make up for losses, but also allow manufacturers to make a lot of money.

Of course, there was an export policy involved, and the basic policy of the Empire was never to provide first-class combat aircraft to other countries, including the Allies. For example, after the appearance of the "Falcon", the "Vulture" was included in the export list, and after the "Golden Eagle" began to equip the Imperial Army, the "Falcon" was included in the export list. Therefore, after the "Peregrine Falcon" is equipped, the "Golden Eagle" can be exported. But Feng Xiangchu is not worried about this problem, if there is a navy lobbying, plus the army will also help their suppliers to persuade the government, then the government is very likely to allow the export of first-class combat aircraft when it sees a huge export tax.

After Hafei's "turn", Shen Fei and Nanfei also quickly reached a package agreement with the navy. The terms of the agreement were essentially the same, except that a clause was added later, namely the minimum purchase quantity promised by the Imperial Navy, which was the basis for ensuring that the factory could continue to operate, rather than allowing the workers to be paid and not work.

After the "compromise" of the three major aircraft manufacturers, the attitude of those downstream manufacturers soon weakened. Several downstream suppliers with large scale and long cooperation with the Navy were the first to "turn" and reached a package agreement with the Navy one after another. Because downstream manufacturers generally only provide spare parts for the maintenance of aircraft directly for the Navy, and also have to deal directly with aircraft manufacturers, these downstream manufacturers have also reached relevant agreements with three aircraft manufacturers, and the Navy is the guarantor, so as to ensure that downstream manufacturers can get orders from aircraft manufacturers to maintain production. In the end, those smaller downstream manufacturers also reached agreements with the Navy one after another, and only five downstream manufacturers were finally kicked out of the list of Navy suppliers because they were too small and their performance in the first 10 months of '26 was too poor, and they lost the opportunity to get orders from the Navy in '27.

In the end, the Navy got much more than it could have imagined. Because downstream manufacturers have greatly reduced their profits, some suppliers have even supplied the navy at a price lower than cost in order to maintain the cooperative relationship with the navy, of course, the quality must be guaranteed, and these will be written into the contract. This makes the purchase price of spare parts reduced a lot, maybe this will not have a great impact on the unit price of the aircraft, but it can greatly reduce the repair and maintenance costs of the troops, and reduce the life cycle of the aircraft.

At that time, Tan Renhao made a simple calculation, taking the "Peregrine Falcon" as an example, Hafei's initial offer was 300,000, and the navy expected to reduce it to 250,000, but in fact, the price of the "Peregrine Falcon" could be completely controlled below 120,000, which was even cheaper than the "Golden Eagle" purchased in 26 years! And the Navy plans to purchase at least 3,000 Peregrine Falcons in 27, and perhaps eventually 5,000, which alone will save the Imperial Navy 390 million to 650 million in procurement costs, or more than double the number of fighters under the same point!

Tan Renhao returned to Zhoushan with a satisfactory result, and as far as he knew, Gan Yongxing must have returned to Zhoushan with the same satisfactory result.