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Chapter 421 - Chapter 421: Sharpening the Knife

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Hardy convened a meeting with a group of think tank experts to discuss the future of Malaya. Their consensus was that Malaya would definitely become independent, as Britain could no longer prevent it. The focus was on how this independence would be achieved, the potential changes involved, and what benefits Hardy could derive from it.

The possibility of merging Singapore with the Dominion of Penang was considered feasible. The situation in Singapore mirrored that of Penang and Malacca before they became dominions. The method for this merger was up for discussion.

One social analyst proposed, "Mr. Hardy, with Princess Margaret expecting a baby soon, have you considered requesting the UK grant Singapore to your children in the future?"

Hardy's eyes brightened at the suggestion. It was a good idea.

The discussion on how to respond to a potential military conflict with Indonesia was driven by lessons learned from the Johor conflict. Hardy Investment Company had absorbed many Chinese assets in Malaya before the conflict with Johor, which led to the downfall of the Sultan of Johor.

Six months ago, Hardy began establishing a presence in Indonesia, investing in the market and initiating acquisition activities. Anticipating potential conflicts, the team was tasked with studying how to handle any disputes with Indonesia.

The conflict with Indonesia was inevitable. Whether due to interest disputes or other disagreements, Hardy was prepared to provoke tensions. The goal was to create economic friction, a tactic similar to those used in Johor.

Some might argue that Indonesia, with its vast size and population, was not like Johor. Hardy's strength seemed insufficient against such a large country, but Hardy was undeterred. He intended to confront Indonesia head-on.

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**Six Months Ago**

Hardy entered the Indonesian market through formal channels and set up investment companies. At that time, Indonesia was friendly with the United States, pursuing an independent foreign policy. Although pro-Soviet, Indonesia did not fully rely on it, maintaining a balanced stance.

The Indonesian government welcomed foreign investment as it was in the early stages of development. Wealth in Indonesia was largely held by Chinese individuals. However, as stability increased, the government began to suppress Chinese assets. The Finance Minister noted that although Chinese made up only 5% of the population, they owned 70% of the country's assets, which needed to change.

The government introduced policies to restrict Chinese capital, such as mandating that the rice milling industry be operated only by Indonesians. This led to many Chinese-owned rice mills closing and being acquired by Indonesians at low prices. New regulations required major shareholders to be Indonesians, making it difficult for Chinese-owned companies to operate or sell their assets.

Hardy's investment company found a workaround by turning Chinese-funded enterprises into foreign-funded joint ventures. This strategy kept Indonesians from taking over these companies and allowed Hardy's company to provide resources and channels for integration into Hardy's economic sphere.

Initially, the Indonesian government was indifferent, but as Hardy's company acquired many enterprises, the government began to react. The legal framework did not prohibit Chinese from selling their assets to foreigners, but the sight of substantial wealth leaving the country fueled discontent. The government planned to implement new policies to curb this trend, viewing Chinese assets as their own and attempting to reclaim them through national power.

Hardy's intelligence network in Indonesia kept him informed of these developments. As news of potential restrictions spread, Chinese investors rushed to join Hardy's investment company, seeking security and opportunity amidst growing uncertainty. This influx led to a surge in the population of Penang and Malacca.

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Colonel James, a former senior U.S. military staffer and conflict expert, assessed the Indonesian situation as a likely point of conflict.

"Explain in detail," Hardy requested.

Colonel James presented a chart and outlined the potential impacts. "If the Indonesian government issues restrictions or seizes property, it will affect Hardy Group's interests. We can protest, but the government may not agree. Our response would involve highlighting Indonesia's economic destruction and violations to the international community."

"We can also use force intimidation," he continued. "Indonesia's military is substantial, with an army of about 150,000, an air force with over 100 aircraft, and a navy with eight ships. We could create friction or engage in a small-scale battle, then seek assistance from the U.S. and British governments. This would include weaponry and political support, allowing us to strengthen our dominion's armed forces."

"The real conflict with Indonesia should be delayed by about a year and a half to ensure we are fully prepared and can deliver a decisive blow," Colonel James concluded.

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Recently, HD Defense Company initiated large-scale conscription in the Hadi Dominion, raising concerns among neighboring regions. The Sultan of Malaya was particularly anxious about the rapidly expanding armed forces, fearing they might be overpowered in the future. The presence of a powerful military force in a British colony pursuing independence raised alarms.

Indonesia, although close by and politically unified with a large landmass and population, was wary of Hardy's growing power.

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The Dominion of Hardy was actively recruiting and training, building new air and naval bases, and expanding its military capabilities. Concurrently, factories and enterprises sprang up, with machinery from the U.S. and Japan, and large-scale production commenced. The entire Dominion was bustling with activity.

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By mid-March, Hardy returned to Cayman. Princess Margaret was heavily pregnant and expected to give birth in two or three weeks.

"Shall we go to America or England?" Hardy asked.

"I miss my sister," Margaret replied.

"Then we'll go to England," Hardy decided.

After preparations, they flew to England. Queen Elizabeth was delighted to have her sister back and arranged for Margaret to give birth at St. Mary's Hospital in Paddington, London. The hospital was renowned for delivering members of the royal family, including Prince Charles and Princess Anne.

Prince Charles, now six and a half years old, stood nearby, observing Hardy. Princess Anne, three and a half years old, was lively and curiously touching Margaret's belly.

"Is there a baby in there?" Princess Anne asked.

"Yes, Annie. Do you think it will be a brother or sister?" Margaret inquired.

"I hope it's a little sister," Annie responded.

Margaret had brought gifts for the children. Charles received a battleship series from Hardy Toys, and Anne got a complete set of Barbie dolls, including a special edition of Princess Margaret.

Two weeks later, at St. Mary's Hospital, Margaret gave birth to a healthy baby boy, which disappointed Annie. Margaret was thrilled.

The following day, they moved back to their castle. Margaret marveled at the newborn, exclaiming, "Oh my God, I actually gave birth to a person. It's incredible."

Hardy, slightly amused, helped decide on the baby's name. They chose "David" for the child, a name Margaret liked.

Half a month later, the British royal family celebrated David Hardy's birth with a grand birthday party. Although David was a newborn, he had the right to inherit the British royal family's throne, ranking fifth in line.

Queen Elizabeth accepted David as her godson and bestowed upon him the title of Viscount. The Queen also granted a fiefdom of Singapore to David, making it a dominion.

The announcement caused shock and speculation. With Malaya's ongoing push for independence and the UK's inability to suppress it, the transfer of Singapore to a royal family member with a nearby dominion stirred many theories.

This move was perceived as a strategic deal rather than a conspiracy. Hardy's visit to the UK had involved extensive discussions with Queen Elizabeth and Prime Minister Churchill, resulting in an agreement for Hardy to invest over $500 million in the UK over the next three years. In return, Hardy's son received a title and Singapore was granted to him.

This arrangement effectively transferred Malaya's rights to Hardy, with the UK satisfied to relinquish control. The sultans in Malaya were particularly concerned, recognizing the aggressive nature of Hardy and the expansion of his armed forces.

The Hadi Dominion's increasing military strength and Hardy's strategic maneuvers were seen as sharpening the knife against the sultans and neighboring regions.