Echoes Of Honor

"That’s an awfully impressive sight, High Admiral," Caparelli said. "And I don’t mean just that you’ve gotten the new design into actual series production while we were still arguing about whether or not to build the thing at all! I’m talking about the sheer activity level out there." He gestured at the view port. "I don’t believe I’ve ever seen that many people working on a single ship at once."

"We almost have to do it that way, Sir Thomas," Matthews replied. "We don’t have all the mechanical support you have back in the Star Kingdom, but we do have lots of trained deep space construction crews. In fact, the old-fashioned nature of our pre-Alliance industry actually gives us more trained perso

"Oh?" Caparelli turned to raise an eyebrow at White Haven. "Lucien Cortez said something like that to me last week, while I was getting ready to come out here, but I didn’t have time to ask him what he meant," the First Space Lord admitted.

"It’s simple enough, really," Matthews told him. "Even before the Alliance, we had an enormous commitment to our orbital farms, asteroid extraction industries, and the military presence we needed against those fanatics on Masada. It may not have been all that impressive on the Manticoran scale, but it was certainly more extensive than you’d find in most star systems out this way. But the important point was that we’d put that all together with an industrial base which was maybe twenty percent as efficient as yours. Which meant we needed four or five times the manpower to accomplish the same amount of work. But now we’re almost up to Manticoran standards, and it’s actually easier to train—or retrain—people to use your hardware than it was to teach them to use ours in the first place. So we took all those people who used to do things the old-fashioned way, trained them to do them the new way, gave them the tools they needed to do it with, and then got out of their way." The High Admiral shrugged. "They took it from there."

"Somehow I don’t think it was quite that simple, High Admiral," William Alexander said. "I’ve certainly had enough experience of the sort of financial strain this level of activity—" he waved a hand at the armorplast "—would entail back home. You’ve got—what? Three hundred billion Manticoran dollars worth of warships?—building out there, Sir, and this is only one of your yards." He shook his head. "I would dearly love to know how you manage that."

"Actually, we’ve got closer to seven hundred billion dollars worth of to

"My God," Caparelli said quietly. He turned to stare back out the view port for several seconds, then shook his head in turn. "I’m even more impressed than I was a few moments ago, High Admiral. You’re talking a good chunk of the Royal Navy’s construction budget there."

"I know," Matthews agreed, "and I’m certainly not going to tell you that it’s easy, but we do have some offsetting advantages. For one thing, your civilian standard of living and the economic and industrial commitment required to sustain it are much higher than ours." He waved a hand with a crooked smile. "I’m not saying your people are ‘softer,’ or that ours wouldn’t love to have the same standard of living yours do. But the fact is that we never had it before, and we don’t have it now. We’re working on bringing ours up, but our people understand about making sacrifices to defend themselves—we had enough practice against Masada—and we’ve deliberately chosen to expand our military capacity at several times the rate at which we’ve expanded our civilian capacity. Even at the rate of civilian expansion we’ve allowed, our people’s standard of living has gone up by something on the order of thirty percent—that’s a planet-wide average—in just the last six years, so we’re not hearing a lot of complaints.

"In the meantime," he flashed a smile at Caparelli, "we’re actually showing a profit selling warships and components to the Star Kingdom!"

"You are?" Caparelli blinked, then looked sharply at Alexander, who shrugged.

"I haven’t looked at the figures lately, Sir Thomas. I do know that whether Grayson is showing a profit or not, we’re saving something like fifteen percent on the hardware we buy from them."

"I’m sure you are, Lord Alexander," Matthews said. "But when you crank our lower wages into the equation, our production costs are also much lower than yours. In fact, one of the reasons Lady Harrington was able to interest your Hauptman Cartel in investing in Blackbird was to get us more deeply involved in civilian construction, as well." He nodded at the view port again. "You can’t see it from here, but over on the other side of the yard, we’re building half a dozen Argonaut —class freighters for Hauptman. We happen to be building them at cost—as the down payment on a process which will end up allowing Grayson and Sky Domes to buy out Hauptman’s share of the yard—but if it works out half as well as we expect it to, we should see orders start to come in from the other cartels over the next T-year or two."

"You’re building all this and civilian ships too? " Caparelli demanded.

"Why not?" Matthews shrugged. "We’re close to the limit of what the government can afford on our current warship programs, but thanks to Hauptman’s initial investment—and Lady Harrington’s, of course—our total building capacity is considerably higher than that. So we divert some of our labor force to civilian construction and build the ships for about sixty percent of what it would cost to build them in the Star Kingdom—assuming that any of your major builders could find the free yard capacity for them—and then Hauptman gets brand new freighters from us for eighty percent of what they would have paid a Manticoran builder. The cartel’s actual out-of-pocket cost is only forty percent—the other forty percent goes towards retiring their investment in the yard—but that’s enough to cover Blackbird’s actual expenses, since the Sword has exempted the transaction from taxes in order to accelerate the buy-out. Meanwhile, the workers’ wages go into the system economy, and everyone’s happy."

"Except, perhaps, the Manticoran builders who aren’t building the ships," Alexander observed in slightly frosty tones.

"My Lord, if you could find the free civilian building slips back home, then you might have a point," Matthews said without apology.

"He’s got you there, Willie," White Haven observed with a smile. "Besides, isn’t it still Her Majesty’s Government’s policy to help ‘grow’ Grayson industrial capacity?"

"Yes. Yes, it is," Alexander said after a moment. "If I sounded as if I meant otherwise, I apologize, High Admiral. You simply surprised me."

"We know how much we owe the Star Kingdom, Lord Alexander," Matthews said seriously, "and we have no desire whatsoever to gouge you or suck your financial blood. But our economic starting point was so far behind yours that it provides us with opportunities we’d be fools not to exploit. And for the foreseeable future, it works in both of our favors. The volume of our interstellar trade has risen by several thousand percent in less than a decade, which has produced a boom economy for us despite the cost of the war effort. At the same time, and even allowing for all the loans and trade incentives your government extended to us at the time of the Alliance, you’re actually saving money by buying ships and components from us. And speaking strictly for the Grayson Navy," the high admiral’s grin bared even white teeth, "I’d like to think that our increased presence adds a little something to the military security of both our nations."