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California-China deal quietly signed

Diplomatic action

1966

On the surface, it's a trade agreement. In truth, it's an arms deal.


The state budget is stretched to its breaking point, and social welfare programs, already overtaxed by victims of the flood, have been slashed to the bone by various Goldwater-approved austerity measures. It’s a bad wildfire season. Homelessness rates remain high. Goldwater, ever-vocal in his opinion that California is a rogue socialist state, seems patently unwilling to help.   Amid this chaos, and ostensibly to give the state a new source of income, Auburn (via Xu, his lieutenant governor) begins quietly negotiating with the Chinese government for discounted rates on imported industrial products, like steel and prefabricated housing, in exchange for agricultural products – or so it might appear. China, hungry for a prosperous Western ally with which to trade, drafts a long-term formal trade agreement, which Auburn signs. Goldwater is furious. The Party sponsors cultural exchange activities, including inviting cadres of Chinese children to tour the state. The federal government threatens draconian funding cuts if relations are not immediately terminated.   Under the table, Auburn and Xu start quietly arranging an arms deal with the Chinese.

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