The Italian Divide (21 page)

Tyler woke up with a start and sprang to his feet looking embarrassed. He straightened the gold chain running across his vest. “Long flight,” he said. “I can never sleep on them. The plane was late so I came here right from the airport.”

“I understand. Come in to my office. Would you like some coffee?”

“No thanks. I’ve had quite a bit.”

When they were seated at the conference table, Zhou said, “You were very mysterious about the reason for this meeting. What do you have in mind?”

Tyler coughed and cleared his throat. “The United States has a large quantity of bonds maturing on August 1st.”

“I’m aware of that. It’s 3.3 trillion dollars worth, to be precise. The Chinese government owns 65 percent of those bonds.”

“We plan to roll the maturing bonds over with new issues totaling the same face amount.”

“I anticipated that. You’ve made no strides in reducing your deficit. So you have to continue borrowing to keep your government operating.”

Zhou loved goading Tyler, who looked annoyed but didn’t respond to the barb. Instead, he said, “I wanted you to know about our plans. I was hoping to obtain a commitment from you that China would roll over its holdings, investing the amounts coming due in the new issues.”

“If we didn’t,” Zhou said, “your government would be in big trouble. We’re by far your largest creditor. If we took the cash from the maturing issues and didn’t invest in the new ones, you couldn’t pay your bills.”

“We’d find another purchaser,” Tyler said. His words had a hollow ring.

“Perhaps, but only at a much higher rate of interest, which would damage your economy. You may act as if you’re in control of your financial destiny, but we both know you’re not. So let’s not play games.”

For a moment, Tyler looked flustered. Then he recovered. In a bold tone, he responded, “The leverage you believe you have is meaningless. Our two economies are so interwoven. I’m sure you read the book I wrote on the subject when I was still a professor at Princeton. If you damage our economy, it will boomerang back to yours. I don’t have to remind you that the United States is far and away the largest consumer of goods manufactured in Chinese plants, which employ millions. If our economy suffers, your factories will have to lay off people, and you will face massive unrest. So for better or for worse, our economies are joined together.”

“The difference is we could manage unrest caused by economic decline. You could not,” Zhou said confidently.

“You mean with tanks in the streets again. We still remember what happened in Tiananmen Square.”

“And we have gone on from there to a massive economic surge, while your economy has barely expanded. It’s only a matter of time until we pass you in GDP.”

Tyler coughed and cleared his throat again. “This isn’t the kind of talk we should have among friends. Let’s return to the purpose of my visit. I would like your commitment to invest in the new issue at the same level of your maturing bonds. It’s in both of our economic self-interest.”

Zhou was ready to use his leverage on Tyler who was here as a bond salesman. “On two conditions. First, your new issue must primarily be short term. We fear inflation and increased interest rates and do not want the value of our investment eroded.”

Tyler hesitated for a second, and then said, “I can live with that. Most of the bonds will be five years or less. What’s your second condition?”

“You may have heard about investments in three banks in Italy by foreign banks.”

“Yes. The ones in Milan, Bologna, and Verona.”

“Precisely. And there maybe others as well. I want you to make certain your government does not intervene or work with the EU to stop these purchases. Rather, you will let the free market take its course.”

Tyler looked bewildered. “Are you behind these purchases?”

When Zhou didn’t immediately respond, Tyler answered his own question. “Of course you are. Or you wouldn’t have raised the issue. But these matters are outside my jurisdiction as treasury secretary. I’m not the president or the secretary of state, and I can’t control them. If they decide to become involved, then—”

Angrily, Zhou pounded his fist on the table. “If you want the People’s Republic of China to purchase your bonds on August 1st, then you had better make certain that the US government does not intervene in Italy. Am I making myself clear?”

Zhou was bluffing. He was well aware of the damage that would be done to China’s economy and resultant civil unrest in the country if the American economy were to go into a tailspin. The consequences for China would be devastating. Zhou could never let it happen, but Tyler didn’t know that. Zhou stared hard at Tyler to reinforce the bluff. He wasn’t sure how Tyler would respond.

The American tapped his fingers on the table. “You have to understand how our government works. These are issues of foreign policy, and I only deal with—”

“Are you telling me, Professor, that you never meet with the president or the secretary of state?”

“Yes, but,” Tyler sputtered.

“Then talk to them. Persuade them.”

Tyler puckered up his lips. For a full minute he didn’t respond. He’s weak, Zhou decided from Tyler’s anguished expression. This man is a university professor. He doesn’t belong in a powerful position as treasury secretary.

“I’m not sure,” Tyler finally said, “they’ll listen to me.”

“Then I’ll give you an incentive to make them listen.”

“What’s that?”

“If you don’t persuade them to listen, and your government intervenes in Italy, China will not buy your bonds.”

Tyler looked pale. “I’ll do my best to keep them from intervening in Italy.”

“Doing your best is not enough. You must succeed. Otherwise you can find another customer for your bonds.”

Washington

C
raig met Betty in her CIA director’s office on the seventh floor of the agency’s Langley complex. The office Craig had occupied for a few short weeks, twenty-one months ago.

When he signed in at the reception desk as Enrico Marino and showed his ID. George Thomas, the broad-chested African American with whom Craig frequently discussed the Nationals, didn’t bat an eye. Craig had avoided saying anything for fear George would recognize his voice.

“Someone will escort you to the director’s office, Mr. Marino,” he said.

Craig nodded. He followed his escort along the corridor to the elevator and then to the director’s office.

Betty was waiting for him at the entrance to the suite. With her secretary watching, and listening, she said, “Well, well, it’s Enrico Marino. The famous race car driver.”

Again, he nodded.

She led him into her office and closed the door. She was shaking her head and smiling as they sat on a sofa and chair in the sitting area in one corner.

“Listen Craig,” Betty said, “I understand you had a good dinner in Paris with Elizabeth.”

Craig was flabbergasted. “You already heard from her.”

“To use one of your favorite expressions, the sisterhood at work. I like Elizabeth.”

“I like her, too! What else did she tell you we did together?”

“She didn’t. I can only imagine. What brings you to Washington?”

“I’m surprised Elizabeth didn’t tell you that, too.”

“Not a word. I’m anxious to hear.”

“I need your help in saving Italy.”

Craig felt as if he had dropped a live grenade into Betty’s lap. Her expression was grim.

“I didn’t know that Italy was in danger.”

“Well it is.”

“That’s what I like about you, Craig. You never deal with the normal small issues I’m used to facing, like a terrorist planning to hijack an airplane or blow up an embassy, or the Russians spying on our embassy in Moscow. With you, it’s always whole countries at risk.”

“Actually, if we don’t do something, other countries in Europe could be as well.”

“Okay. I’m ready to listen. Start at the beginning and take it slow. After twenty-one months in this job and forty-four trips to the Hill to testify before congressional committees, my brain neurons are beginning to calcify.”

“They don’t calcify. They just stop reproducing.”

“Thanks for pointing that out. It makes me feel much better.”

Craig talked for almost an hour about Federico’s murder, Italian bank takeovers, and Chinese involvement in Parelli’s campaign. At the end he said, “I know Zhou is heavily involved in the bank takeovers. I suspect he may be supporting Parelli.”

“But you don’t have any evidence of that.”

“Correct. However, based on Elizabeth seeing a Chinese man in Parelli’s suite in Venice, there is some Chinese involvement.”

“He could have been delivering carryout for all you know.”

“No delivery man ends up in the boss’s bedroom.”

She sighed.

God, she seems to be tired, he thought. The job must be getting to her.

“What would you like me to do?” she asked.

“You sent me to Argentina as your special representative. Now I’d like you to send me to Singapore—as your personal representative, in order to compel Lin Yu, a Singapore banker, to tell me who was behind his investment in the bank in Milan and who was responsible for Federico’s murder.”

“And you don’t have any personal motives here. Do you? You’re not hoping Lin Yu points the finger at your old enemy Zhou Yun so you can nail Zhou for Federico’s murder and gain revenge for Francesca’s death and for disrupting your life.”

“That thought never even crossed my mind.”

“I figured as much.”

“But now that you mention it, I guess it could be a by-product of saving Italy.”

Betty took a deep breath, stood up, and paced around the office for a moment.

“I can’t send you to Singapore without President Worth’s approval. My relationship with him is different than what I had with Treadwell. Worth’s a good man, although a little timid sometimes. Have you ever met him?”

“No.”

“He’s heard of Craig Page. And he’s grateful for what Craig Page did in Argentina. So you have that going for you. Also, he’s worried about increasing Chinese power. He doesn’t want us to drop to second place on his watch. So that’s a plus.”

“You want me to go with you to meet with Worth about this?” Craig was hoping the answer was, “yes.”

“That’s what I was thinking. We’ll have to tell him about your Enrico Marino new ID.”

“That’s okay with me. I’m not worried about Worth selling me out to Zhou.”

Betty picked up the red phone on her desk. He was impressed at how easily she got through on a direct line to President Worth. No secretary involved. At the end of the conversation, he heard her say, “Thirty minutes is good, Mr. President. We’ll be there.”

They took the chopper to the White House.

Once the three of them were in the Oval Office, standing on the royal blue carpet with the presidential seal in the center, Worth pointed to Craig and said to Betty, “You told me you were bringing Craig Page with you, but he doesn’t look like the pictures of Craig Page I’ve seen. In fact, he looks a lot like Enrico Marino, the Italian race car driver.”

Worth winked at Craig and pointed to the living area where the three of them sat down.

“Would you like to tell me how Craig Page, America’s super spy, became Enrico Marino, the race car driver?” Worth said.

“It’s a long story, Mr. President.”

“I’d love to hear it. I have a great deal of appreciation for what you did for our country in Argentina as well as in past missions.”

Mindful of the time demands of the president, Craig compressed his story to a ten-minute summary. At the end, Worth said, “Are you still worried about Zhou Yun seeking revenge?”

Craig was impressed that Worth immediately cut to the heart of the matter.

“I am, Mr. President, but I don’t live my life in fear. If he finds out who I am, and comes for me, I’m prepared to defend myself.”

“I don’t doubt that at all. Now what’s this about today?”

Craig glanced at Betty to see if she wanted to make the presentation to Worth, but she nodded to him. So Craig told Worth what was happening in Italy and why he wanted to go to Singapore as an American representative. He decided to omit Chinese involvement with Parelli because, as Betty had pointed out, that had not yet been established. Even without Parelli, and merely dealing with the Milan bank transaction, Zhou and the Chinese were involved, which should be enough for Worth.

When Craig was finished, Worth was nodding. Craig took this as a positive sign.

“You’ve presented me with a troublesome set of facts,” Worth said. “I’d like to know if you’re right about Zhou and the Chinese trying to take over Italian banks. They might then try to take over other banks in Europe. We can’t let that happen. On the other hand …”

Oh, oh, Craig thought. What’s coming next.

“On the other hand, the Europeans should be out front on this. Perhaps, Craig should brief them on what he’s learned.”

Betty had that special look in her eyes, which Craig recognized meant that she had just been served a pitch she planned to hit out of the park.

“With all due respect, Mr. President, lately the Germans and French have been rejecting everything we suggest.”

Worth ran a hand through his hair. “I guess that’s right.”

Craig exhaled with relief. “Thank you, Betty. Does that mean I can go to Singapore as a presidential envoy to try to get the facts from Lin Yu, the Singapore banker?”

“Absolutely,” Worth said. “Pick another false name. Betty will give you an ID. I would like you to involve Jennifer Nelson, our ambassador in Singapore. Have her go with you to your meetings. She’s smart, politically savvy, and knows the country.”

“I’ll do that Mr. President.”

“Good. I want you to pull out all the stops. Threaten that the United States will blacklist Lin Yu’s bank and put it on a list like Iranian banks that US firms won’t be able to do business with. I want you to find out who was responsible for the transaction with Federico’s bank and his murder. Was it Zhou Yun or someone else.”