Test Writing - 9

Bordes-Aitcheson toyed with the idea he had put to Dillon as he drove his white Mercedes 300DL up Gardener Road, past the American Embassy. He was running a little later than usual because he went to get the evening papers to glance through the business and social columns to see if there was any reference to the OUT bank or Harry Chang. There was not even a mention, let alone any gossip. 

So he was still able to proceed with his plan but first a number of pitfalls had to be circumnavigated and the first one was George Archibald. He felt that he had flushed Archibald out into open conflict with him by dismissing John Sing. Surely Archibald couldn't resist the temptation of another opportunity to try and trip him up. He had to confront now, to try and defend his position of support for John Sing and Bordes-Aitcheson hoped it would be sooner rather than later. So it was with joy that he greeted the sight of the Silver Rolls parked in his driveway when he got home.

Bordes-Aitcheson had his plan of attack ready when he entered the hallway to be greeted by Stephanie.

   "Hi Jeff" her twanging Texan voice greeted him. It always amused him that after 25 years in Hong Kong, she still kept her accent but then she did have her circle of American friends and she knew everybody at the American Embassy where her father had been Ambassador up until ten years ago.

   "George Archibald is in the library, sorry honey, but he insisted on waiting for you."

   "That's Okay, Steff, I've been expecting this and I dismissed John Sing this afternoon."

   "Was that wise?"

   "It had to be done; I'll explain it to you later. Come on."

She went with him into the library. Archibald greeting was polite, but they both knew that pressure was building up.

   "Sorry for coming up here like this, but I felt I'd miss you at the bank."

He glanced at Stephanie.

   "Would you like a drink, George?" she enquired.

   "Perhaps I may need it. Yes, I'll have a beer."

   "Same for me, Steff."

She nodded and left to get the drinks.

George Archibald was younger than Jeff, at 44 years old Archibald was worth perhaps 400 million.  But word had it around town that the shipping collapse of the early ’80s had greatly reduced George’s net worth. At one stage in the ’70s, George and his partners controlled 18 super tankers but with the recession, there had been a considerable drop in the charges for shipping freight and their income fell rapidly.

George was known around town as 'Flash Arch' because when things were going well for him he showed it, the Rolls was just one of four cars that  he used, he had a Ferrari, a Range Rover and a Merc’ parked outside his mansion on the westerly side of the peak. His wife was part English, first generation, and daughter of an Earl. She threw some of the best 'bashes' in Hong Kong and was the 'Queen Pin' of social life, she knew the governor and was proud to say they were related.

George himself was healthy, fat and proud of it. He wore his clothes slightly tight so he always looked as if he 'had' just eaten well. He was around 5' 6" and was always well dressed.

Over the years Bordes-Aitcheson had learned to tolerate him, but this evening he was ready for confrontation.

   "The weather is positively oppressive these last few days." George said.

   "It's the time of year for it" Jeff made the standard reply.

   "Yes possibly, actually I thought it may be certain development at the bank was causing the heat."

   "Oh?" Bordes-Aitcheson enquired.

   "I've heard that you've taken exception to John Sing’s behaviour. What do you plan to do to discipline him?"

   "It's already been done actually" Bordes-Aitcheson was somewhat surprised to learn that George didn't already know.

   "Oh, and what action have you taken?"

   "I've asked him for his resignation, he can not stay on now."

Archibald showed his surprise but contained his disbelief. "Resignation, that's a little harsh?" 

"Not harsh enough, he failed to report to his immediate superior, he failed to report to the executive officer. Instead of that, he reported to a minority board member, namely you. You took unilateral action by hiring two thugs to follow Tina Bolger without consultation with me, the chairman of the board. And in so doing, you jeopardised this banks chance of being approved a reputable organization to transact business in the overseas market. Your actions are far more reprehensible than John Sing’s so I have no option but to ask you for your resignation from the board."

Archibald just sat there looking at Bordes-Aitcheson; he was completely dumb-struck by the request that confronted him. He knew that if this went to a board meeting he did not have enough support to survive a vote. Unless he would talk his way out of this he would loose his place on the board and thus his source of information of what was happening in the financial market and a lot of inside knowledge.

   "For Gods sake, Jeff, don't take it so seriously. I was only thinking of the bank. So what if we get turned down by the IMF, it’s not the end of the world. We can still continue to trade and grow."

   "Growth is not the great aim in life George, survival is. And we will not survive unless we open new markets overseas, to open new markets we need the approval of the IMF. To do that, we have shown a structured organization. We can not say that we are above board when a board member who takes actions like you do. We have no choice but to ask for your resignation, if you do not oblige, I will be forced to inform the other board members of your actions. I'll have you voted off the board."

   "You wouldn't do that." Archibald’s face was riddled with shock.

   "If you don't offer your resignation right now, I will bring the matter up at the monthly board meeting tomorrow morning and you know that the board will side with me in which case you will be disgraced before all Hong Kong. You know what will happen to you. If that happens? A lot of business will leave you; it will be in the papers. Your credibility will be doubted, chances are that you will be ruined."

Archibald was in dire trouble and Jeff knew it. Archibald only had 7% and control of a further 8% that was not enough to take on someone with 40%. Of course Jeff was right if it became a boardroom battle, it would be public knowledge and, undoubtedly, Archibald would loose business that he could ill afford.

   "Okay, Jeff, I'll give you what you want, but I'll also give you a warning. You have reached the end of your reign as Chairman and your 40% will not save you for much longer, a big fall is coming maybe much sooner than you think and when that fall comes, you will not have the resources to beat off the challenge that will be mounted for control of AAB. The way forward is into China and you cannot accept that. You will have to stand down, eventually. When you do, I will be waiting in the wings. Our people are ready for 1997 and this bank will lead the way for Hong Kong into the new Middle Kingdom. There's only a year left, count down to the end of your reign."

Archibald stood up satisfied that he had suitably confused Bordes-Aitcheson; he turned on his heels and stomped out.

Stephanie came in with the two beers.

   "Join me." Jeff asked, but despite the joy of having shifted George he was physically shaken. The open threat was more than he had anticipated, and what was all that crap about joining the Middle Kingdom.

   "That was some little outburst, I heard it as I was coming up. But what did he mean, 'our people will be ready for 1997?" She handed him the beer noticing that his hand trembled slightly.

   "Huh, that was a rather peculiar statement and it would seem to confirm that he had ambitions above and beyond that of an ordinary board member. He is actually looking forward to Hong Kong being returned to China, and it just doesn't make sense."

   "I got the impression that he was part of an organised plot to bring about the takeover of the bank." she pointed out.

   "Makes me wonder if Archibald knows who the people behind Narrow Investment actually are and he is part of it. If that's the case, then they control 15% of the stock already."

The full implication of that thought worried him. Fifteen percent in the bag?

Another five or ten percent here and there to be of 25 or 30% stock revolt. Jesus if they could get that type of voting block together against him then board members he trusted could be swayed. It became even more imperative to tie up those loose ends, in particular Sir Percy Penderville. He wanted to retire to England and his seven percent could be bought out. He was most likely to sell and Archibald knew that and if he was tied up with Narrow Investments, they would know too in which case, now that a die of sorts, was cast, they may go for the shares most likely to move.

   "Is there a danger of them owning more than 15% between them?" Steff was obviously thinking along the same lines.

   "It's a possibility, I've gotta check the register and see if anything has changed hands lately."

   "Just how healthy are we if there's an open share battle?"

   "We're very badly fixed, to be quite honest. We'd be fully stretched to buy a further two percent."

   "Oh my gosh! That bad? What are you going to do?"

   "Well," He decided suddenly to tell her about the offer to the WTB. She listened carefully as he laid out his energetic plans for the take over of Harry Chan's bank and the sell off of one third of the shares of AAB including 20% of the shares he held.

   "Will it work?" she asked the simplistic question that had a thousand 'if's' in the answer but no definite one.

   "I'm assuming that Chan's bank will go belly up, and that Narrow Investments don't know about it and that there will be a general stock exchange fall and that Penderville will sell to us and that WTB will go for the idea and that they wont just go for Chan's bank on its own and that I can trust this guy Dillon. There's a lot of hope involved, this is far more risky than anything I've ever done, but that's the way I've gotta do it."

   "Why not just sell out and to hell with it?"

He sighed, not a usual habit of his for it meant defeat, and in a way he was defeated because his options were limited. "To sell out would mean conceding everything I've worked for, everything that dad and granddad worked for. It would mean conceding to the likes of George. This is another task that God has placed before me and it’s personal. I hate saying things like this, but I have to win, my way. I just can't give in to the likes of George Archibald."

  "Jeff, now don't get mad, but," she began, "Why not let daddy help?"

Jeff hated old man Howell, the ex ambassador, ex congressman and vice president of one of America’s largest photocopier manufacturers. Jeff and her father had fallen out over a silly allegation about ten years ago. At the time Andrew Howell was the American Ambassador to Hong Kong and word had it that IBM were to set up a manufacturing plant in the New Territories. Even though it was only a rumour, Howell refused to comment one way or the other and several electronic companies ran away with themselves making plans for expansion to meet the expected demands from IBM. Some of the suppliers had accounts with the AAB and came looking for loans to fund the expansion plans. Although he told them to wait and see, they went elsewhere as the expectations quickly got out of control. The whole thing ended when IBM announced that it was opening a new plant in Malaysia. Howell retired having dumped his entire shares portfolio during the height of the speculations. Naturally the reporters now turned their attention on Howell and began running stories that he had refused to comment to increase speculation and drive up the value of the shares he held.

Howell was in London when the story broke and rang Jeff to see if he could trace the source of the story, so that pressure could be brought to bear to have it retracted and an apology printed. Jeff was furious with Howell's audacity in calling him. Jeff politely pointed out that he had asked Howell to issue a clarification statement which would have prevented the speculation in the first place. And he had lost customers over the incident, his anger boiled over and he said that he wouldn't be surprised if the allegation story was not the truth. Those were the last words the two men had ever spoken to one another. Howell had tried on several occasions to rectify matters with his son-in-law but despite Stephanie's pleading, he refused to speak to old man Howell.

After what seemed like an age to her he finally spoke. "Steff, I'm staring defeat right in the face, and if I go to that man I'm excepting defeat, I'm not sure I could live with myself if that happens."

            Jeff was filled with indecisiveness and knew that he was in serious trouble. Could there be a way that Howell could help him out? And if there was, would he be willing to swallow his pride and accept Stephanie’s father’s help?

Just then the phone rang.