`My fellow Americans. I wish that I could appear before you in happier circumstances. But events far from our borders have conspired otherwise. As all of you know the Government of China launched an unprovoked attack on Vietnam last Saturday, at the same time seizing the South China Sea. This illegal action was followed three days later with the sinking of the USS Peleliu, a United States naval vessel engaged on a humanitarian mission to save oil workers manning oil rigs in the South China Sea. Since then we have come to the brink of nuclear war. Indeed, over the past days, Chinese submarines have been preparing to attack America. One reached the Californian coast. I do not wish to sound melodramatic but I am told these submarines are at a high state of readiness. Should the Chinese President so order, our nation's capital could be reduced to rubble within minutes. I have told President Wang that if he does so order we in retaliation would have no option but to destroy every Chinese city of consequence.
`So what does the moment require of us? I have to tell you, friends, that my advisers are divided.
`Some say we should fight at all costs. To give in now to the Chinese state would be a mistake. It would send a signal to every tinpot dictator that all they have to do is kill some Americans and the United States will fold. This is a powerful argument. It goes to the heart of what sort of world we, and our allies, have been trying to shape since our historic victory over Fascism in 1945 and Communism in 1989. The lessons of those two great wars was that it is the bullies who fold if you have the courage to stand firm. Democracy, freedom, free markets have triumphed. Evil empires have crumbled.
`Yet there is an alternative view. This holds that the conflict in which we became embroiled is only of regional significance. Our interests in China are greater than the concerns of a frightened and paranoid leadership hanging on to power well after its "sell by" date. Our great corporations have put down roots in China and are agents of significant political change. Our regional role is best suited when we adopt the posture of honest broker, rather than global policeman enforcing our will wherever we might find it questioned. As the events of the last few days graphically demonstrate, we have a lot to do.
`But my job is not to arbitrate between two contending schools of thought. It is, with the guidance of God, to govern wisely. That's what you elected me to do last November. That's what I pledged to the nation in my inaugural address last month. Then I warned of the uncertainties facing our nation and of the need for clarity of vision and single-mindedness of purpose. To govern is to choose. The choice I have made is for peace. I am tonight issuing orders for the immediate recall of all US forces west of Japan. We are not, however, walking away from the battlefield. That is not the American way. We have not come to the brink of nuclear war simply to capitulate.
`I have told President Wang that withdrawal of US forces is conditional upon the cessation of all hostilities by China, and by that I mean all hostilities. During these past days China has not only launched attacks on Vietnam but has also occupied islands in the Taiwan Straits formerly held by the Taiwanese government. I call upon China to restore those islands to their lawful and legitimate government. And I have also told President Wang to submit China's claim to sovereignty over that area to international arbitration. Provided certain guarantees are made concerning free access of international shipping to the South China Sea I can see little reason for the United States to raise any objections. We are confident that these guarantees will be forthcoming. The Chinese government has agreed to allow Japanese naval vessels to escort merchant shipping.
`If China agrees to our terms, the very real threat of nuclear war will have been averted. For that we should give thanks to God. For this is not a time for false triumphalism. As Nikita Khrushchev observed at the end of an earlier international crisis: they talk about who won and who lost. Human reason won. Mankind won.'
Wang Feng called the meeting at short notice. Present were Jamie Song, General Zhao — the wheeler-dealing soldier who commanded the People's Liberation Army's vast financial and industrial assets known simply as Multitechnologies — and Zhang Zhi, Politburo member responsible for security. Wang was agitated. He kept on referring to `some people' who were questioning the course upon which he had set the country but a week before. He was not a man to show emotion and this uncharacteristic outburst underlined to those present the pressure he was under and the extent to which others in the leadership the `some people' he obliquely referred to re ready to pick up the baton should he drop it. He had finished his telephone conversation with Bradlay only hours before. It was a conversation mediated by interpreters at either end that prevented a nuclear exchange and effectively brought Dragonstrike to a conclusion. Yet far from feeling elated, he was moody and dejected.
`So what have we achieved?' he asked rhetorically.
`A financial success beyond our expectations,' General Zhao said. `We ought to be able to rebuild our navy with the proceeds of oil and currency market trading.'
`Really!' he retorted.
`Yes, Comrade,' General Zhao said. `May I be permitted to explain?' He met no resistance and proceeded. `I would ask that what I am about to say does not leave this room. This operation has been known to only three people. Briefly, Multitechnologies exploited its foreknowledge of Dragonstrike to make money for the PLA. We always knew our attack against Vietnam and the sequestration of the South China Sea would come at a price — the loss of important capital assets — and the President thought it prudent to provide for that contingency by some judicious investments. Excluding fees, Multitechnologies has done very well out of oil. Profits taken so far amounted to some $1.6 billion; this has been parked, temporarily, in the US Treasury bond market in short-dated T-bills. The biggest single trade we conducted was on Wednesday in Singapore, for $600 million. It was a special trade booked through the SIMEX exchange: our agent unloaded 30,000 oil futures contracts at $45 a barrel. We sold 80,000 of the original 160,000 IPE April contracts in the London futures market on Tuesday at a profit of more than $600 million, and still hold 50,000. Since the entry price into the market was $25 a barrel these 50,000 contracts mean we have $1 billion of paper profits to cash in. We plan to do so at the earliest opportunity. We also did quite well out of the yen. Deals in London and Tokyo netted $466 million. In short, Multitechnologies has made $2 billion in cash and has another $1 billion of profits still locked up in the London oil futures market. The bottom line, sir, is that Multitechnologies has doubled its money. We could buy a fully fitted-out aircraft carrier for that and still have change for a couple of submarines.'
There was a gasp from Song and Zhang. Wang brightened. Although he had been kept informed throughout the week of Zhao's progress he had no idea he had been so successful. Song, a former businessman, gave Zhao a slight bow in recognition of his skilful trading. Zhang, who was bowled over by what he had heard, soon recovered his composure and indicated that he too had some good news.