Chapter 130: Radar Selection (Part Two)

Choosing the radar was indeed a difficult task. Yang Hui was aware of a radar model available at the time but was reluctant to mention it.

Back in 1983, General Electric in the United States had already designed a highly capable multifunction radar intended for the ill-fated Northrop F-20 Tigershark light fighter. Although the radar was successful, the F-20 project ultimately failed, leaving the radar without an aircraft to equip. The U.S. government then stepped in to continue its development.

Designed to meet the F-20’s export requirements, the radar was made as simple, reliable, and inexpensive as possible. But with the F-20’s cancellation, the associated radar program was also slated for termination. However, the government funded its continuation, rebranding it as the AN/APG-67. At this point, the government stipulated that the new radar must outperform the F-16’s AN/APG-66 radar while maintaining size constraints.

In other words, what later became known as the AN/APG-67 was essentially an upgraded version of the F-20 radar. Given the cost limitations of the F-20 airframe, achieving superior performance to the AN/APG-66 while keeping the radar compact seemed impossible—who could possess such prowess?

Granted, in 1983 this radar was not as powerful as it would be in later years, but it already had the essentials, including the much-needed downward-looking capability for new aircraft. Its only drawback was the lack of reliable anti-ship attack capability.

These facts indicated that the F-20 radar was suitable solely for the Air Force, while the Navy urgently required strong anti-ship capabilities. Coupled with the Americans’ typical unreliability, the technology of this radar was advanced but impossible to fully domestically produce before 1989. Thus, importing the AN/APG-67 seemed entirely impractical.

No matter how advanced, an unreliable system was useless. During the noon negotiations, Yang Hui overheard Chief Engineer Yu’s indecision regarding the radar choice, but Yang Hui never mentioned this radar. Although it had been showcased alongside the Northrop F-20 model at the Paris Air Show in 1983, it remained unspoken.

After concluding the call, Chief Engineer Yu waited for hours before receiving calls from the Navy, Air Force, and General Staff, all concerning radar selection.

As negotiations resumed, Chief Engineer Yu had already reached a conclusion: the focus now must be on technology transfer. The minimum acceptable condition domestically was that the technology be importable, preferably enabling full indigenous production.

The new round of talks began, each party immersed in their own considerations.

George needed to know if the new aircraft would indeed abandon the Blue Fox radar, which was the largest foreign procurement project and undoubtedly the most lucrative.

“Hello, Mr. Yu. Are you really planning to give up the Blue Fox?”

Giving up Blue Fox was not considered; what was being negotiated was the importation of Blue Fox. Chief Engineer Yu, armed with new information, sought the most favorable terms.

“George, after discussion, we find the Blue Fox radar’s cost control quite satisfactory and fitting our current needs. As long as your price is reasonable, Blue Fox will be our choice.”

A sudden turn of events, indeed. It was once thought the new trainer aircraft wouldn’t use Blue Fox, but now it was suddenly proposed to be equipped with it.

George was eager to agree. Although Blue Fox was not a Marconi product, with the British Royal Navy abandoning it, Blue Fox’s prospects looked bleak. Marconi’s assistance in selling such a large order would surely bring hefty commissions to Ferenti Corporation.

“No problem, absolutely no problem. After so many cooperations, our sincerity is well known. We will certainly offer a fair international price. Rest assured, it will not exceed $400,000 per set.”

Four hundred thousand dollars per unit was not expensive by 1980s standards when radars often cost millions. However, compared to other second-generation fighter radars of the same era and capability, this was quite pricey.

Chief Engineer Yu was well informed about second-generation radars and knew this price could be further negotiated.

“That’s impossible. Saying that shows no sincerity. Blue Fox, as a second-generation radar, cannot be sold for $400,000. With that attitude, we will have no choice but to look for other suppliers.”

As businessmen do, even manufacturers of sophisticated aviation radars were no exception. George went on to extol Blue Fox’s excellent performance.

“No, you can’t say that. Our Blue Fox radar was finalized in 1981 and is absolutely the king of second-generation radars. Its performance far surpasses others. The $400,000 quote is entirely reasonable.”

After sitting silently for a long time, Yang Hui finally spoke: “That’s not quite right. While I don’t doubt Blue Fox’s excellence among second-generation radars, it remains a second-generation radar. It evolved from your country’s Seaspray radar, with low development costs and components that are now quite cheap.”

Since the matter was laid bare, there was no need to beat around the bush. George presented a new offer, which was Marconi’s anticipated price.

“$350,000. That’s it. We reduce the price by $50,000, but you must guarantee to purchase 150 units. Only then will we make a profit.”

Three hundred fifty thousand dollars sounded like a significant reduction, but Yang Hui felt there was still room to bargain and prepared to push further.

At this moment, Chief Engineer Yu spoke: “$350,000 is not unacceptable.”

Yang Hui was astonished by Yu’s generosity; clearly, the price could be pushed down further. Meanwhile, Marconi’s side was delighted, convinced that $350,000 guaranteed a handsome profit. The team was ready to push ahead vigorously.

Glancing sideways at their expressions, Yu continued: “$350,000 and 150 units are possible. But we have one condition: we require technology transfer.”

“Impossible! Absolutely impossible. Technology transfer is out of the question. We have no precedent. Blue Fox was only finalized two years ago—how could we transfer technology now?”

George’s eyes reddened; he stood abruptly, ready to withdraw from the talks.

At this point, Yang Hui finally understood Yu’s intention: if they could purchase 150 sets at $350,000 each and acquire Blue Fox technology, the deal could be justified.

After all, technology transfer and setting up a production line are entirely different. Establishing a production line is merely local manufacturing, with production volume and profits still controlled by the technology owner. Technology transfer, on the other hand, means full ownership of the technology, severing all ties with Marconi and Ferenti thereafter. In simple terms, it is a one-time buyout, far more advantageous than setting up production lines or purchasing finished products.

George rose to leave but moved slowly, indicating there was still room for negotiation. Republic and Britain had engaged in technology transfers before; the Spey MK202 was a clear and typical example.

At this critical moment, Chief Engineer Yu refrained from making any conciliatory remarks. To do so would be to concede defeat, ending any hope of technology transfer.

Yang Hui watched George’s performance with inward amusement but outwardly said, “Not necessarily. Technology transfer—remember the Spey 202 is the best precedent. So, wouldn’t your side reconsider?”

Hearing this, George found a way to step back and slowly sat down.

There were many troubles today; Yang Hui planned to work overtime tonight to continue writing. There was no need to wait for Chapter Two now; it would be ready by tomorrow morning.