The Chinese Massacre of 1603

The massacre of 1603: Chinese perception of the Spaniards in the Philippines Jose Eugenio Borao National Taiwan University From a historiographic point of view, the incident of 1603 acquires special significance in the long and tragic history of Chinese massacres in the Philippines. For compared to all the rest, this has been the best chronicled, not only in Spanish, but also in Chinese sources. Moreover, both coincide in the presentation of facts and are alike in the ordering of events.When these sources—especially the Chinese—begin their account of the massacre, they refer to a remote, perhaps even unrelated, incident that is, nevertheless, significant. The tension started in 1593, when 250 Chinese were forcibly recruited to row the ships which Gomez Perez Dasmarinas, then Philippine governor general, sent to conquer the Moluccas Islands. Soon after they set sail, the Chinese in the flag ship staged a mutiny, assassinated Dasmarinas, and took over the vessel. Weeks la ter, the son of the murdered governor, Luis Perez Dasmarinas, then based in Cebu, sought vengeance to fall on the heads of the culprits.To do this, he asked for assistance from the Chinese authorities of Fujian, who welcomed the young Dasmarinas’ ambassadors and offered them their help as well. The second episode happened 10 years later, in the spring of 1603, when â€Å"three mandarins† arrived in Manila on a strange mission: to reconnoiter a â€Å"mountain of gold† abundant with trees that bore gold. This visit raised the suspicion of the Spaniards in the Philippines, already so accustomed to intermittent threats of conquest, particularly from the Japanese. They concluded that this was probably an advance party for a future invasion of Manila.At that time, the Chinese in this city were almost 10 times the number of Spaniards. The third event, the Sangley uprising, happened in autumn of that same year. The reasons for this uprising remain unclear. The motives r ange from the desire of the Chinese to dominate Manila, to their wanting to abort the Spaniards' moves that seemed to lead to their elimination. After initial uncertainty as to who would eventually win out, the rebellion was quelled by the Spaniards who, together with Filipino and Japanese troops, massacred some 20,000 Chinese.Both our sources also point to a more or less common epilogue. After the Spaniards’ first attempts at reconciliation and China’s indignant reactions, both parties reached a new compromise and the agitation easily vanished as though nothing had happened. Former trade relations were resumed, allowing the Chinese to settle again in Manila, even if both sides harbored grudges against each other for what had happened earlier. What I now propose is to try to bring together reports on the massacre, both from the known Spanish sources and from the Chinese founts.The comparison may allow us to better understand the remote and proximate causes of the trage dy of 1603. Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 1 The sources The Spanish manuscript sources which document the massacre are found in their entirety in the General Archive of the Indies and were published almost completely in the â€Å"Colin & Pastells,† that is to say, the new edition of the work of Colin, done by Pastells in 19001. Some of them were reproduced immediately afterwards and translated to English, in Blair & Robertson,2 and again soon after by Pastells in his joint work with Navas. These sources may be classified into two: those released during the event—which served as â€Å"news updates†Ã¢â‚¬â€or shortly after the incident, giving a global view of what had happened; and those that appear in the books that came out around that time, situating the incident within the general context of Philippine history, as Morga4 does in his book, or as part of the conquest of the Moluccas, as Argensola5 approached it in his. The letters and reports fro m the officers of the Royal Audiencia of Manila, and those of the superiors of the various religious orders belong to the first type.These documents intend to give personal viewpoints which, despite the fact that they contest each other, are not contradictory but rather complimentary. Of course, all deplore the massacre even if they deem it a justified, though exaggerated, measure. At the same time, they differ mainly in the analysis of the means that could have been taken to avoid it, or of the actions that indirectly provoked it. Argensola tries to consolidate all the information that reached the court during the years immediately after the massacre (he published his work six years after the event), and personal reports from the main players of the said event.Argensola may have had the Augustinian Diego de Guevara as his principal source, because this priest moved to Madrid to attend to some of his order’s concerns shortly after the incident. The work of Dr. Morga, eyewitne ss of the events, is briefer and simpler in tackling the topics and conclusions that were being formulated in Manila immediately after the uprising (Morga left Manila in 1606). The Chinese sources, on the other hand, are official and therefore anonymous. They are briefer than those of the Spaniards, and seem to be less defensive, even if they also seem to reflect partisan tendencies. They usually acknowledge provocation on the part of the Chinese expatriates, and yet refuse to be judged by foreigners. These documents sometimes cite specific words or actions of an officer from Fujian, although they Francisco Colin, S. J. Labor evangelica, ministerios apostolicos de los obreros de la Compania de Jesus, fundacion y progresos de su provincia en las Islas Filipinas. Nueva edicion ilustrada con copia de notas y documentos para la critica †¦ por el P. Pablo Pastells, S. J. , Vol. II, Barcelona, Imprenta y Litografia de Henrich y Cia, 1900, pp. 18-441. 2 Blair & Robertson, The Philippi ne Islands (vol. XII, pp. 83-97). 3 Pablo Pastells & Francisco Navas, Catalogo de los documentos relativos a las Islas Filipinas (vol. 5, Barcelona, 1929, pp. LXXVI-CVIII). 4 Antonio Morga, Sucesos de las Islas Filipinas, Mexico, 1609. We used here the version annotated by Jose Rizal, offset reprinting by the National Commission for the Centenary of Jose Rizal, Manila, 1961. 5 Bartolome & Leonardo Argensola. Conquista de las Islas Malucas, Imprenta del Hospicio Provincial, Zaragoza 1891. We have used the following references: Ming Shi (â€Å"The History of the Ming Dynasty â€Å"), Ed. Ding Wen, Taipei, 1975, Vol. 11 (pp. 8370-8375); Ming Shi Lu (â€Å"The True History of the Ming Dynasty†), prepared by the Academia Sinica, Ed. Zhongwen, Volumes 12 and 13, Taipei, 1961 (pp. 12090, 123030, 12371); Dong Xi Yang Kao (â€Å"Studies on the Eastern and Western Oceans†), Ed. Taiwan Shang Wu, Taipei, 1971 (pp. 57-60); Ming Ching Shi Wen Bien (â€Å"Anthology of the Official Documents of the Ming Dynasty†), Vol. 6, Ed. Zhunghua, Beijing, 1962 (pp. 4727-4728); Huang Ming Xiang Xu Lu; Guo Que (â€Å"National tolls†), Ed.Ding Wen, Taipei, 1978, Vol. 8 (p. 4917). I wish to thank Prof. Zhang Kai for his invaluable help in pointing out these sources, and my research assistant Lin Li-pin for his help in the translation of these materials. 1 Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 2 generally present themselves as part of an official investigation that was also transmitted officially. Also, since the events happened outside China, it is difficult for the imperial officers to verify them, which is why they put forward brief and detached explanations.Nevertheless, the massacre of 1603 happened during a period of stability in the Ming Dynasty; thus, their capacity to inquire into and annotate an event that happened outside their shores was much greater than, for example, the time when the massacres of 1639 or of 1662 took place. The former happe ned on the eve of the fall of the Ming Dynasty, while the latter was more associated with the Ming resistance—at that time, Koxinga7 was dying in his Taiwanese hideout—than with the Manchus, the new powers in China, who were still trying to establish themselves in the country.The incident of October 25, 1593 Let us now take a brief look at Argensola’s account in Chapter 6 of his book. 8 He states that Governor Gomez Perez de Dasmarinas prepared four galleys to attack the Moluccas but had difficulty finding soldiers to man them. When the flagship was the only one left to be filled, â€Å"he ordered that of the Chinese contract workers who were entering the Philippines, 250 were to be taken to man the flagship. The Royal Treasury was to pay each one two pesos a month†¦ and, in the best of cases, they were only to row in calm weather. The Governor forced the governor of the Chinese to get these 250 men who set sail against their will. Finally, on October 17, the naval crew left for Ternate. However, as soon as the flagship moved a short distance off, and the Chinese oarsmen were put to work—unaccustomed as they were to the task and spurred on by brutal and menacing foremen—the said workers decided to stage an uprising, preferring to die in the attempt than to continue rowing for the Spaniards. The rebellion took place on the night of October 25, claiming the lives of the Governor himself and a great part of the 80member Spanish crew.The bad weather persisted, which was why the mutineers only went as far as the Ilocos region, where they were assaulted by the natives. They left behind the surviving Spaniards, among them, Juan de Cuellar, secretary of the Governor and the Franciscan Montilla, both of who managed to reach the coast. Afterwards, the Chinese decided to sail to China, but landed in Vietnam instead, where â€Å"the king of Tunquin seized their cargo†¦ and left the galley to sink in the coast. The Chinese wer e dispersed and they fled to the different provinces. †9 The Spanish survivors informed Manila of what happened.The rest of the navy based in Cebu under the command of the governor’s son, Luis Perez Dasmarinas, returned to Manila. There, he was appointed interim Governor of the islands. Then a strange thing happened in 1594. In retrospect, this incident seems to have served as a â€Å"rehearsal† for what was to happen next. That year, the Chinese presumed that the Spanish navy had left for the Moluccas Isles. As Argensola puts it, â€Å"There appeared in Manila a great number of ships from China, without the customary goods, but rather loaded with men and weapons.On board were seven mandarins, counted As regards this massacre and the problems of interpretation that arise from consulting and comparing Chinese and Spanish sources, see my recent paper â€Å"Consideraciones en torno a la imagen de Koxinga vertida por Victorio Ricci en Occidente. † Encuentros en Catay, n. 10, 1996. 8 There are discrepancies between Argensola and Morga, although these are more a question of details than of arguments. 9 Argensola, Conquista de las†¦, p. 210 7 Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 3 among the senior Viceroys or Governors of their provinces†¦ nd they went to visit Don Luis with great pomp and an escort of men†¦ saying that they were on the lookout for Chinese who were going about those lands without license. †10 Dasmarinas welcomed them and gave each one a gold chain. In the end, he concluded that they had come either to conquer or to sack Manila, but changed their minds when they saw the presence of the Spanish armada. Argensola adds that since the Chinese who killed Dasmarinas’ father were from Quan Chou, he sent Fernando de Castro, a cousin of his, to that province to give an account of the mutiny.However, the trip was forestalled due to the bad weather. It is noteworthy that neither Argensola nor Morga says that the Dasmarinas took advantage of the situation to take up the matter with the mandarins (although it seems that he did, as deduced from the Chinese sources that we shall now see). For example, the Dong Xi Yang Gao is more exhaustive in this respect. It states that Luis Dasmarinas (called Maulin here), immediately after replacing his father, sent some priests to inform the Chinese authorities in Macao about the uprising.These priests bore a letter, the translation of which is conserved in the Chinese sources. It also adds that the magistrates of Fujian continued to send merchant vessels to bring back the Chinese who had been living in Luzon for too long. According to Argensola, this detail coincides with what the mandarins explained to Dasmarinas. The Chinese chronicle continues: â€Å"The governor of Luzon provided these ships with food and also gave them a letter (addressed to the Chinese government). He verbally aired his complaints about the way the Chinese treated the murdered governor, his father.And he gave them an edict, sealed in a gold box which, together with the abovementioned letter, was wrapped in red silk and sent to China on a merchant vessel. †11 The â€Å"three mandarins† arrive in Manila (May 1603) We have said that the abovementioned incident does not seem to have anything to do with the one that took place nine years later. However, the parallelism is great, as we shall now see. The events arising from the arrival of another group of mandarins are well documented in the Spanish sources. There are three types of information that are all complimentary.Those from the royal officials, that is, those from the Governor, Don Pedro de Acuna, as well as the listeners of the Audiencia, Jeronimo de Salazar and Tellez de Almazan, who show themselves to be hostile to and suspicious of the governor. The sources of the ecclesiastics, and in the third place, the information that the Chinese themselves give, and which they offer in c onsideration of the Spanish authorities. In particular, a letter written four days before in the sea by Chanchian, the head of the Chinese expedition, and which is submitted to the governor who sends it immediately for translation.Likewise, two more documents corresponding to some â€Å"petitions of Chinese to the Chinese emperor†, which ended up in the hands of Archbishop Benavides who translated them. He sent the king his own letter where—â€Å"enriched† after his own 10 11 Idem, p. 212. The Dong Xi Yang Kao contains the Chinese translation of Dasmarinas’ letter which he gave to the mandarins. Here, the same facts are given, except that the apparent motive of the uprising was more of greed (the ship was loaded with much gold and silver) than of the cruelty received in the hands of the foremen of the ship, as Argensola would have put it.Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 4 inquiries—he makes a very complete analysis of the situation12. T hough actually we do not know if Benavides made them Public or not, and therefore if they have to be considered as part of the information that the Spaniards had then. Gathering together all the reports (Argensola’s and those of the two judges of the Audiencia, Jeronimo de Salazar and Tellez de Almazan, both hostile toward the governor, Pedro de Acuna), this series of events might have had taken place as follows: Friday, May 23. Three mandarins landed in Manila, displaying their insignias as judges.With great pomp and an entourage of 50, they sought an audience with the Governor and gave him a letter written four days earlier in the high seas. In the said letter, signed by Chanchian, military chief of Fujian, the mandarins expounded the reason for this trip. They wished to verify the existence of a fabulous mountain in Cavite, believed to yield 100,000 taeles of gold and 300,000 taeles of silver a year. They claimed that everyone could go and dig there and that the Chinese ha ve already taken a great quantity of these metals back to China.Chanchian also indicated that he had with him a fellow named Tio Heng, the man who reported to the emperor of the existence of the said mountain, as well as a eunuch called Cochay, who received specific orders from the emperor to investigate the matter. Another mandarin was present, besides Cochay and the immediate chief of Chanchian. 13 He added that he did not believe in the existence of such a mountain, and presumed it to be a lie. Nevertheless, the Governor had nothing to fear, since it was his duty to look into the matter.Afterwards, the Governor had them housed in special lodgings inside the city. The fact that they flaunted their insignias as judges and that the Governor allowed them to do so, incurred the ire of the members of the Audiencia. From May 24 to May 26 (Saturday to Monday), the mandarins begin to mete justice on their countrymen. Meanwhile, Salazar, the fiscal of the Audiencia, carries out his own inv estigation. Within this period, the governor allows the mandarins to bring their entourage to Tondo, where the Christian sangleys live. May 27 (Tuesday).Salazar presents a report in a public session of the Audiencia. The report is approved and the governor requested to stop the operations of the mandarins so that the investigations may continue. The friction between the Audiencia 12 It does not remain clear how Benavides obtained the two documents, and if he made them known to the governor or not. The first (document) is similar in structure to the letter which the governor received from the mandarins, the translation of which he sent to the King, but much more extensive and detailed.Therefore the said document perhaps may be a different version from the letter, made by memory (since he possibly helped in the verbal translation of that thing) and completed a posteriori with his own investigations, since at the end of that letter he said: â€Å"I am a man who knows the language of t hese Chinese and I know a lot about their things and customs of China by having lived with them for many months and I made it also because I take up this business with suspicion and care as these can be advisors who advise badly on it because of not understanding it† (Colin & Pastells, II, p. 415).The second document, different from the letter, is a remonstrance of the emperor by one of his officials. The mandarins presented it to the governor with the intention of giving more credibility to his own letter. Given that the Spaniards did not seem to take it into account, we will not deal with it now, but we will go back to it at the end of our study for its clarificatory value. 13 Note that the spelling of the names correspond to the free style of transcribing that the Spanish translator had of the Fujianese pronunciation of the names ( the translation of the document that appears on Blair & Robertson, vol.XII, pp. 83-97, points out in the heading which was made by a Dominican). As will be seen later , the correspondence in mandarin is as follows: Chunchian seems to correspond to Gan Yi-chen, Tio Heng to Zhang Yi and Cochay to Gao Tsai. Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 5 and the Governor worsens. Moreover, the judges of the Audiencia complain of being relegated to the sidelines. In the following days, the Audiencia desisted its moves because the Governor finally published an edict prohibiting the mandarins from administering their justice and from flaunting their insignias.On the eve of their departure, they go to Cavite to see the said mountain. With them are Second Lieutenant Cervantes, as well as by the governor of the sangleys, Juan Bautista de Vera,14 who seems to have been around all the while. There, Tio Heng, unable to satisfactorily clear himself of the deception, had the Spaniards bearing down on him with threats of death. However, the mandarins intercede for his pardon. The Spaniards grow even more suspicious. On the day of their dep arture, the Governor receives the mandarins and honors them with some gifts.As he sends them off, they apologize for the mix-up they have caused and thus sailed back to China. We can better know the identities of these mandarins and further clarify the case by examining complimentary data from the Chinese sources. In this attempt to consolidate diverse information, we can conclude that the speaker of the group was the mandarin Gan Yi-chen (Chanchian in the letter), a centurion and was probably the military chief of Fujian. The second mandarin (not mentioned in the letter) was Wang Shi-ho, the magistrate of the Hai Cheng district, where many of the Chinese immigrants came from.The third mandarin must have been the eunuch Gao Tsai (who appears in the letter as Cochai). Accompanying these three dignitaries were Zhang Yi (Tio Heng) and Yang Ying-long, who were the ones who informed the emperor in Beijing of the said mountain of gold. Yang Ying-long was another centurion whom the Chinese sources accuse of collaborating with Zhang Yi (who probably used the former’s clout to get an audience with the emperor and consequently win his favor).The emperor actually allowed the said expedition despite opposition from various people in his court who not only thought it a ridiculous project, but which could also be a source of trouble. According to these sources, one might think that the two magistrates Gan Yichen and Wang Shi-ho were also of the same opinion. In fact, the latter was so vexed that he died soon after they arrived in Fujian. The other magistrates reported Zhang Yi’s behavior to the emperor, demanding that he be punished for trying to deceive the imperial government and for bringing about its humiliation in a foreign land.The role of Gao Tsai, on the other hand, is more difficult to interpret. Some sources picture him as the superintendent of the said Beijing expedition, while others show him as Fujian’s quartermaster general for taxes, who makes a living off the Chinese maritime trade. The Ming Shi Lu gives its version of the conduct of these three: â€Å"The diabolical Fujianese Zhang Yi, came up with an evil plan to propose the excavation of a gold mine in Luzon. But his real intention was to conspire with the eunuchs and provoke the barbarians.Yang Ying-long was his partner†¦Zhang Yi was beheaded and [his head] shown to the coastal provinces as a warning to people of his kind. † 15 Lastly, it is worth pointing out that the Chinese sources coincide with those Spanish ones in indicating that this entire trip had been the proximate cause of the Spanish suspicions and the subsequent massacre which took place four months afterwards. 14 A Chinese who arrived in Manila during the times of the pirate Limahon, whom he had served. At that time, he was appointed governor of the sangleys and was â€Å"respected by the Spaniards and loved by the sangleys† (Argensola, p. 30. He was also known as â€Å"Eng Kan g† (Rizal), â€Å"Encan† (Argensola) and â€Å"Encang† (Tellez de Almazan). 15 MSL, Chapter 404 (Vol. XII. P. 12090). Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 6 But, the question is if the dispatch had been an advance party or not, and if it came to study the possibility of invasion of Manila—whether it was piratical or in an organized form. At the moment, the Spaniards could not know it, although an excess of suspicions could turn itself into an untenable situation that might end up out of control. It was precisely what happened.The massacre of 1603 a) The preparation On December 18, 1603, once the incident that we are about to see had ended, Governor Pedro de Acuna wrote the king an account wherein he explained in retrospect his behavior during the whole event. He begins by saying that the arrival of the mandarins had made him suspect a possible invasion from China. This was why his eventual moves, preventive and defensive in nature, were limited to the following: 1. – To create space, he ordered the demolition of the houses in the Parian that was adjacent to the walls of the city.This, at the same time, corrected some of the wall’s defects. 2. – He asked the mayors of the district and the magistrates of the Parian to submit to him a list of immigrants under their jurisdiction and of the weapons in their possession. They were also asked to indicate whether these people were to be trusted or not. The order was fulfilled. 3. – He carried out regular inspections of the artisans (blacksmiths, etc. ) in particular, and commissioned the manufacture of bows, arrows, pikes, etc. for the royal storehouse.At the same time, he ordered that all these weapons be collected and transported. 4. – Just in case, he had provisions stored. 5. – He hired sangleys to build a canal with the end of creating a moat for the city, if ever the need arises. Acuna also points out a distinction that is also mentioned in other Spanish sources: that between the Chinese merchants, who have settled for years in the Parian, and the recent arrivals who were vagabonds and troublemakers who had nothing to lose and who could not return to China due to the crimes they had committed. 6 Acuna hangs the blame of the succeeding events on these Chinese, since they were the ones who paved the way for everything, â€Å"in order to bring the merchants and the peaceful people to their side, convincing them that the measures that were being taken were meant to kill the Chinese. † 17 The Chinese sources, on the other hand, also echo some of Acuna’s positions, but presenting these under an offensive point of view, coloring the thing differently and relating these to what directly affected them. For example, the Huang Ming Xiang Hsu Lu shows that the Spaniards repared for the massacre way ahead of time, since â€Å"they began to buy from the Chinese all the metal objects that they had. The Chinese, on the other hand, sold all the iron they found because they saw that they could profit from it. † (point 3 from Acuna). 18 This same idea is found in the Ming Shi, which also adds that â€Å"the Chinese were obliged to register their names and to be divided into groups of 300†19 (point 2 from Acuna). 16 To better differentiate the Chinese groups, see Edgar Wickberg, The Chinese in Philippine Life, 18501898 (Yale University Press, 1965), pp. 6-11. 17 Blair & Robertson, vol. XII, p. 154 18 HMXHL, Chapter 5, Luzon. 9 MS, Chapter 323 (p. 8372) Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 7 b) The beginning: Sangley uprising or Chinese pogrom? Another interesting issue to consider is that of who started it first. The Spanish sources (Morga, Argensola, Acuna, etc. ) emphatically state: the Chinese staged an uprising. Benavides, the bishop of Manila, noted in a letter to the king that â€Å"the multitude of Chinese was so great, among them, base and vicious men who spread the r umor (which is absolutely false, but not for them) that the Spaniards were going to kill every one of them, which was why they provoked a rebellion on the night of the eve of St.Francis. They armed themselves and on that day killed several Spaniards who pursued them, among them, Luis Perez de Dasmarinas. †20 On December 18, when everything was over, Governor Pedro de Acuna told the king that â€Å"according to the investigations†¦ and what some of those involved had declared, it goes without saying that the uprising was instigated from China, and the stage set by all, if not some, of the mandarins who had been here. † 21 According to the Spanish sources (since the Chinese are silent about it), the Chinese had also been girding themselves for it.The Chinese Juan Bautista de Vera had been constructing a more or less fortified zone half-a-league from Tondo (which Argensola calls a â€Å"sugar refinery†), where some provisions and arms were stored. c) The unfold ing of events The actual struggle is already well known because it is what was most interesting to relate to the Spaniards. To summarize, we basically follow Morga’s account: The evening of October 3 (Friday). The uprising was scheduled to take place on the last day of November, but realizing that they were going to be discovered, the sangleys move it to the third of October.On this day, at 11 pm, about 2000 men (or â€Å"according to the sangley who was under torture, 40 captains to 150 men†), begin to gather in the â€Å"fort† of Tondo. That night, Juan Bautista de Vera visits the governor to inform him of what was happening. Thinking that de Vera was in cahoots with them, the governor throws him into prison. The Chinese, noting de Vera’s absence, appoint another Christian sangley, Juan Untae, de Vera’s godson, to replace him. 22 That same night, Luis Dasmarinas secures himself in the monastery of Binondo with a small group of soldiers.The Chines e fly into action, burning some houses and then returning to their â€Å"fort. † The morning of October 4 (Saturday). The sangleys of the Parian (that is, the peaceful old-timers identified with the Spaniards, some of whom are Christian) are asked to enter the city, but they refuse to do so due to doubts as to who would be the victor in this conflict. They decide to remain in the Parian. Dasmarinas leaves Binondo for Tondo to fortify himself in the church with 140 harquebusiers. A thousand and five hundred Chinese rebels show up. There is a fight to take over the church.Five hundred Chinese die, while the rest retreat to the â€Å"fort†. Dasmarinas pursues them and dies in the attempt. The Spaniards are thrown into confusion. October 5 (Sunday). Realizing that de Vera was not going to come, the rebels kill Untae and coerce the Parian residents into joining forces with them. As they make for Manila, they ravage everything that comes their way. The city puts up a tough r esistance and many men die. In the evening, they retreat to the Parian and to Dilao. The 20 21 Blair & Robertson. Vol. XII, p. 143. Idem, vol. XII, p. 155. 2 Sangley general Hontay (Argensola), or Juan Ontal (Tellez de Almazan). Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 8 Spaniards likewise press the Parian residents to side with them. Overcome by this psychological stress, some Chinese—among them, a relative of de Vera—hang themselves. Both sides brace themselves for a second attack. October 6 (Monday). Another assault and renewed resistance. A Spaniard, with the help of a Japanese corps, launches an unsuccessful offensive. An armada of Pintados suddenly makes its way through the river and blasts the Chinese lines with canons.They divide themselves into three and penetrate the inland. One group makes for the Tingues of Pasig, another for Ayonbon [Bayombong] and the third, the most numerous, for Laguna de Bay, the mountains of San Pablo and the province of Batangas. October 8 (Wednesday) and the succeeding days: The Chinese abandon the city. The Spaniards are hot in their pursuit. It seems that the first two groups are easily annihilated, since nothing more is said of them. The third group, starving and unarmed, leave a path of devastation. Luis de Velasco with 70 of his men is at their heels, killing many each day.Finally, Velasco perishes at the hands of the Chinese who set up fort in San Pablo. Argensola adds that the native Filipinos, instead of siding with the Chinese, lent a hand in the massacre. October 20. A new detachment of Spaniards, Japanese and 1500 natives of Pampanga and the Tagalog provinces is formed in Manila. They soon finish off all the Chinese who secured themselves in San Pablo and Batangas. The rebellion is quelled. October 22 (Argensola’s date). Juan de Vera faces trial. In the succeeding days, other Chinese meet the same fate. Only 300 are pardoned, but the rest are sent to the galleys.The Chinese sources are le ss detailed in describing the operations, perhaps due to the handful of sangleys who survived. It is thus more difficult to establish a clear parallelism between the two accounts, since they cite actions that are not mentioned in the Spanish sources. Consequently, there is much discrepancy. The Ming Shi relates that when the Chinese discovered the Spaniards’ plot to massacre them, they â€Å"retreated to Tsai Yuen (which may be translated as â€Å"the plantation† and which may refer to Juan Bautista de Vera’s strategic â€Å"fort† and to Argensola’s â€Å"sugar refinery†). 3 Then, the Spanish â€Å"chief† sent soldiers to go after them (this may well refer to Luis Dasmarinas’ move or to the arrival of the army of Pintados). The Chinese were unarmed. Many were killed and the survivors fled to the Talun Mountain. 24 The Spaniards attacked the mountain once more, while the Chinese put up a desperate defense. The Spaniards suffere d momentary defeat, which their â€Å"chief† (probably the captain of the expedition or the Governor himself) regretted, moving him to negotiate a truce. The Chinese, thinking that this was some trick, killed the messengers, thus driving the Spanish â€Å"chief† to exasperation.He abandoned their mountain camp and retreated to the neighboring town, simultaneously setting up ambush parties in the surrounding areas. The Chinese rebels were starving and so decided to go down the mountain and plunder the town,25 only to be ambushed by the Spanish troops. Twenty five thousand Chinese perished in the mas23 CHEN, Mattew. O. P. â€Å"The Ming Records of Luzon,† in The Chinese in the Philippines, Historical Conservation Society, Manila, 1966, p. 250. According to the translator’s note, this place is the presentday San Miguel district, although we do not see any further proof to this. 24 Ibid.Matthew Chen, in another note, indicates that this place was close to wha t is now known as the city of Makati. The rest of the account probably recounts the travails of the first or second group of the three groups of Chinese who fled, since we know nothing more of their fate from the Spanish references. The data does not seem to refer to the third group that went to San Pablo de los Montes and Batangas. Moreover, this reference is unusual, since there are no mountains close to the Makati area. 25 Matthew Chen seems to assume that this town was none other than Manila. But neither is this clear. Itinerario, vol. 3, No. 1, 1998, pp. 22-39. 9 sacre26. The Dong Xi Yang Kao offers a different denouement to this final massacre, coloring it with superstitious, even apocalyptic visions. It says that when the Chinese descended the Talun Mountain to attack the town, 10,000 of them were killed in an ambush, while others fled to the valleys and died there of starvation. Then it adds: â€Å"There was a strong downpour while they were on the Talun Mountain, and as th ey stood beneath the rain, they saw something shine out in the midnight sky. There was an earthquake. The Chinese panicked and began to kill each other by mistake.The Spaniards, taking advantage of the situation, were able to kill many of them. That same month, a flood in Chang Chou took the lives of over 10,000 families. †27 The aftermath After the massacre, the Spaniards carried out three steps. First, the attempt to clarify if the uprising had been in connivance with China or not, and in connection with the coming of the three mandarins. Various testimonies given by the Governor seem to indicate this, but their validity is doubtful since they were obtained through torture. The royal officials insist on the same idea, e. g. , Argensola.Nevertheless, it is something which is never presented as sufficiently proved and that he insists that with the principal aim of justifying the killing. In this way, Juan Bautista de Vera would have been more of a scapegoat than the one respon sible for a conspiracy (Rizal’s thesis). Secondly, the Spaniards made an inventory of the goods of the massacred rebels, which they placed at the disposition of their families. This was made known through a mission to Fujian; second, an attempt to resume the necessary trade relations. As regards the latter, Argensola (who seems to have occasionally copied Morga in this point), explains that Capt.Marco de la Cueva was sent to Macao with the Dominican Luis Gandullo to inform the Portuguese of what had happened and so that they might be forewarned of â€Å"rumors of war† from China. At the same time, they brought letters for the â€Å"tutones, aytaos and visitadores† of the provinces of Guangdong and Fujian, explaining the conduct of the Chinese and the Spaniards’ response. What happened was not only known in Macao; news of Spaniards in Macao and the reason for their presence there soon reached Quan Chou, which was why â€Å"the wealthy Captains Guansan, Si nu and Guanchan, who regularly traded in Manila,† went to see them.They gave their own conjectures about what really happened, brought letters to the mandarins, and encouraged the merchants and ships of Quan Chou to go to Manila. Cueva’s mission was a success, for soon after his return—in May of 1604—13 ships from China arrived, filling up two ships bound that same year for New Spain with their cargo. Thus end the Spanish accounts. The Chinese sources, besides being very detailed (in this case, they were interested in formulating a more complete evaluation of the event), also coincide with the Spanish references.For example, the inventory of goods is mentioned in the Dong Xi Yang Kao: â€Å"The Spanish governor had all the possessions of the Chinese immigrants stored in big warehouses, marked with the names of their owners. Then he wrote the magistrate of Fujian, urging the relatives of the deceased to go to Manila to collect their belongings. But there w as a Chinese 26 27 MS, Chapter 323 (p. 8373). DXYK, Chapter 5: Luzon (p. 59) Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 10 called Huang, a good friend of the governor, who, pretending to be a relative of one of the massacred, fraudulently went off with some goods. 28 However, what is even more interesting is the final evaluation made by the emperor and officials of Fujian who were then deciding on whether or not they should resume trade relations with the Spaniards. We came across two versions of the official act, the first of which is found in the Ming Shi: â€Å"The Magistrate Xu Xue-ju29 sent a report to the court. The emperor was shaken and began to mourn for the dead. On the 12th month of the year 32 (1604), he called on his official magistrates to investigate the case. These officials presented their conclusions in the court. The emperor said: â€Å"Zhang Yi, etc. ave deceived the imperial court and brought about conflict in a foreign land. Twenty thousand people and commo ners have been massacred. They have disgraced our Empire. Their execution is not deemed an excess. They must be beheaded and their heads shown to all seas. But the governor of Luzon murdered people without license. We shall leave the officials to decide his punishment and they shall inform us of this. Hsu Hsue-ju wrote the authorities of Luzon, accusing the governor of massacre and demanding that the widows and children of the victims be sent back to China. For the moment, China did not launch a punitive attack on Luzon.Afterwards, the Chinese began to return to Luzon in trickles, and the Spaniards, seeing the profitability of commerce with China, did not prevent the Chinese from reestablishing themselves there. The Chinese population began to grow once more. †30 The second more extensive report is found in the Ming Jing Shi Wen Pien, which contains the report made by the said Administrative Commissioner of Fujian, Xu Xue-ju, who explains his move, and the memorandum he sent t o the emperor, particularly the so-called â€Å"Report to Emperor Wan-li regarding the recall of Chinese merchants in Luzon,† of the Ming Jing Shi Wen Pien31.Here, Xu Xue-ju begins to speak for himself, situating the problem, and declaring afterwards that he sent an edict-letter to Luzon after having reviewed the problem from its early stages. He acknowledges that Zhang Yi’s deception caused the massacre, and takes the blame for it. However, he considers the Spanish intervention, as unacceptable, unlicensed by the Emperor (up to here, the anterior document is repeated almost verbatim).Consequently, the magistrate of Fujian clamors for vengeance, citing that what is most unjust in the Spanish maneuver is their non-recognition of the fact that the development of Luzon was greatly due to the hard work of the Chinese living there. There was no response from the Emperor, and so he was sent another communication bearing the same message. The emperor ultimately rejected the m ove, basing his decision on these five points: 1. – Due to their long tradition in trade and commerce, the people of Luzon were practically their subjects. 2. – The antagonism, as well as the confrontation, took place outside of China. . – The merchants are humble folk and, therefore, not worth waging battle for. 4. – These merchants, upon going to Luzon, abandoned their families without considering their filial ties. 5. – An expedition to Luzon will only drain their armed forces. The theme was certainly discussed 28 29 DXYK, Chapter 5: Luzon (p. 60) The figure of Xu Xue-ju is both well known and respected (Dictionary of the Ming Biography, Vol. I, pp. 582-585). In 1591, he was appointed Assistant Commissioner for Surveillance in Hukuang and was soon after named Administrative Commissioner in Fujian, a post which he held until 1607.Consequently, he was able to gather first-hand information on all the happenings, from their very beginnings. 30 MS, C hapter 323 (p. 8373). 31 MJSWB, Chapter 433 (p. 4728). Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 11 in the court, creating a great tension, and its reverberations were prolonged for a long time, even until 1605, when Mateo Ricci made some comments about it. 32 Thus, Xu Xue Ju was left with no other recourse than to end this letter with a warning to the Spaniards: they should be grateful to the emperor, they must change their attitude, and they should restore the properties of those who perished in the massacre.Only with this shall trade be resumed. On the other hand, if they do not comply with these demands, then they would send thousands of warships with the families of the deceased aboard, along with mercenaries from the vassal states to conquer and divide Luzon among themselves. 33 Thus ends the letter sent to the Philippines. Conclusions To better understand the general process of the massacre, particularly, that of â€Å"the three mandarins,† in Manila, the proximate cause of the massacre, we must make four contexts. Besides, they were perfectly alluded by Benavides in that letter he sent the King dated 5 July 1603, which was accompanied by those two singular documents already cited in the beginning of this paper. ) In the first place, it is proper to point out that the time in which these events took place was marked by a rampant increase of piracy in Chinese waters, as well as by the express prohibition that Chinese subjects engage in maritime commerce at a time when it was gaining popularity in the international arena. Consequently, it was common practice for Chinese patrons to seek alternative and profitable solutions.Under such circumstances, Manila was considered an important center for the export of silver in Southeast Asia (thanks to the coming of ships from New Spain), just when the demand for this metal was on the rise in China. Because of this, it is not surprising that Manila’s neighbors take interest in this fragile colony, o r that new risks arise: principally, the unexpected invasion of Japanese pirates and, from 1600 onwards, the appearance of Dutch pirates. (Olivier de Noort). Taken within this context, Manila was regularly flooded with Chinese with eyes set on establishing themselves there.Now, even if this meant a contribution to the city’s progress via their artisan skills, they increasingly posed themselves as a threat to the Spanish populace, who made up only 10% of the total number of Chinese in the city. The Chinese menace was certainly confirmed in 1593, when 250 hired Chinese contract workers assassinated the governor of the Philippines; and also, presumably, in 1594 when seven mandarins appeared with great pomp and veiled motives at the helm of a fully-equipped armada; and was indeed alarming when more mandarins reappeared in 1603 to mete justice on their compatriots.Authors like Argensola do not doubt their intentions. In their accounts, they throw in descriptions of how eight Chine se trade junks arrived in Manila while the mandarins were there, assuring the Spaniards of the real purpose of the Chinese conquest. Besides, he adds, while the mandarins pressured Zhang Yi to explain the existence of the mountain of gold, he would whisper— according to the interpreters or naguatatos (Argensola said)—that what he had wanted to say was that Luzon had so much gold that it was worth conquering. 32In the beginning of 1605, Ricci pointed out in a letter: â€Å"It was spoken much in the cort, and we feared that some harm could come from all these [due to the possibility that it might be associated with the Spaniards. ]† See Jonathan Spence, The Memory Palace of Mateo Ricci, Penguin Books, 1985, p. 216. 33 This same letter was sent to the Spaniards who translated it. Argensola published it shortly afterwards. It is interesting to note that the two versions closely coincide with each other, but of the five points indicated by the emperor, Argensola†™s translation only gathered numbers 1, 2 and 4.Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 12 The figure of Zhang Yi (a carpenter, according to Benavides) probably brings together the images of fortune hunter, pervert (as the Chinese sources put it) and dreamer who see in Manila’s regular influx of traders from Quan Chou and Chang Chou, the possibility of Chinese expansion and personal gain. Here is a man capable of conjuring his own utopia—a place where mountains produce gold. He not only ends up believing the tale, but also manages to persuade the emperor himself to authorize an exploration. 4 Although the Chinese magistrates accused him of â€Å"going out with all this to look for people to steal and to rob and to be a corsair† (Chinese documents of Benavides). The conflict that was bound to take place with the Spaniards—men also accustomed to pursuing an El Dorado—had no other alternative but to erupt. In the second place, we should conside r another fact that made possible the increasing acceptance of Chinese in Manila. The Spaniards, in particular, the Provincials of the religious orders, admitted that they have gone too far disobeying the royal ordinances that prohibited the growth of the Chinese population beyond 6000.This norm was obliterated by the profits gained from the granting of each new license. The Bishop of Nueva Segovia, Fr. Diego de Soria, thus commented: â€Å"†¦ it was a generally said that the number of Chinese in the uprising reached 23-24,000, even if the judges declare that they hardly came up to 8000, a figure which these same judges further reduced, because they are primarily responsible for the uprising through the liberal granting of licenses to Chinese who wish to remain in Manila. These licenses were sold at five tostones each.There was a judge who was able to collect a total of 60,000 tostones, or the equivalent 30,000 pesos, out of the said licenses. †35 In the third place, and now setting our sights back to China, it is worth considering Wan Li’s style of government—concretely, his politics of assigning eunuchs as revenue agents and quarter master generals of the mines. 36 The system saw its beginnings in 1596; by 1599, it was already widely practiced. This procedure was meant to correct deficient tax legislation which, in turn, brought about a lax and corrupt administration.Entrusting this function to eunuchs imposed a certain kind of general auditing system. But as the eunuchs carried out their jobs, they also interfered with the regular government functions. Besides, the posts were usually occupied by fortune hunters and scalawags, owing to the absence of a precedent and a clear-cut process of organizing a regular staff. Sometimes, tax collection at the mines would be reduced to a form of extortion that would then be sabotaged by rival officers; and more often than not, this reated social problems. 37 34 A brief observation: A Frenchman, Rene Jouglet, passing by the Philippines in 1931, hearing about the treasures of the pirate Limahon, published in Paris, in 1936, an imaginative book called La ville perdue, where he mentions that the treasures of the pirate —which may have been hidden in Cavite or Pangasinan thirty years before the massacre— had been the cause of various Chinese expeditions, the last of which was in 1603.See Cesar Callanta, The Limahon Invasion, New Day Publishers, Quezon City, 1989, p. 69. 35 For this, see the letter of Fray Bernardo de Santa Catalina, Provincial of the Dominicans and Commissioner of the Holy Office (Blair & Robertson), as well as the adjoining note of the translator who comments on the Royal Decree of June 13 (Barcelona), which restricted the presence of Chinese nationals in Manila. 36 See RAY HUANG, â€Å"Lung-ch’ing and Wan-li reign, 1567-1620† in The Cambridge History of China, Vol. , Part I, pp. 530-532. 37 We may sight the following examples. In 1599: inspector Ma Tang so provoked the merchants of Linqing (Changdong) that they burned down his house and left him half-dead; Cheng Feng, assigned as tax and mines inspector of Huguang, caused a mutiny among the inhabitants of Wuchuang; textile mill work- Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 13 Taking into account these circumstances, it is easy to come up with a final, fitting interpretation of the figure of the eunuch Gao Tsai.For one, among the many diverse possibilities one could think of, he might have been the one who defended the ambitious projects of fortune hunters like Zhang Yi or the corrupt behavior of officials like Yang Ying-long, against the courtiers of Beijing and the magistrates of Fujian, like Gan Yi-chen, Wang Shi-ho and, most specially, Xu Xue-ju. Benavides saw it clearly since the first moment: â€Å"Because the Emperor has â€Å"men of gold and women of silver made† and invited them to drink, so he sent a eunuch to each of their kingdoms; an d these eunuchs, to get gold and silver for the Emperor, impose a lot of taxes on he vassals, and the empire of Chine felt so oppressed with all this that publicly the Chines here [the Philippines] tell us that within two years more or less there 38 will be communities and uprisings in China. † The figure of Gao Tzai appears again in the following year (1604), when the Dutch were in the Pescadores islands trying to establish trade with China. He sent a mission to the Dutch in the aforementioned islands, trying to solicit gifts of high value for himself and for the Emperor.Dong Xi Yang Kao and Ming Shi notified the governor, Xu Sue-ju, and the officials of Fujian province to oppose the actuation of the eunuch by sending the touzy (Admiral), Shen You-rong, with a battleship to the coast of the province in order to stop the plans of the eunuch, Gao Tzai. 39 It is evident that the recent happenings in Manila had been the last vindication which Xu Xue-ju encountered in order to opp ose the politics of the eunuch—this time with force, as shown in the presence of Shen You-rong. 40 ers of Suzhou staged a demonstration against revenue agent Sun Long.In 1603: Wang Zhao, coal mines inspector of Xishan (Beijing), encountered opposition from among the miners who held a demonstration in Beijing. In 1606: Yang Rong found the revenue office burnt down by the miners of Yunnan. See also Bai Shouyi and others. In A Brief History of China, Vol. I, with editions in other languages, Beijing, 1984, pp. 348-349. 38 Colin & Pastells, Op. cit. , vol. II, p. 415. In fact, it is not strange the clarity of the observations of the Dominican Benavides about the eunuchs, since he knew in detail the recent experience of another Dominican, Diego de Aduarte, which preceded the ones cited in the previous note.In effect, Aduarte left Manila for Macao on September 6, 1598, with the aim of paying the ransom for the â€Å"Gentleman Don Luis† in Canton. He arrived there 20 days aft er, and coincided with the eunuch, Liculifu (sic), who — upon knowing the presence of the foreigner— tortured him and extorted from him most of the money he carried. In the end, Aduarte had no other remedy but to borrow the money. The entire story is related by Aduarte himself in his autobiographical work entitled, Historia de la Provincia del Santo Rosario de la Orden de Predicadores de Filipinas, Japon y China, Zaragoza, 1693, pp. 14-219. At the same time, Mateo Ricci himself recounts how one of the catholic servants who acted as a mail carrier, also in 159899, was robbed, murdered and thrown into a river because he denied paying commissions, everything was probably made in connection with the legal pressure—according to Spence—which were provoked by the eunuchs. See Jonathan Spence, Op. cit. , p. 215. 39 This theme was studied by Leonard Blusse in â€Å"Inpo, Chinese Merchant in Pattani: a Study in early Dutch-Chinese relations† (1977), p. 294.B lusse mentions —the Chinese sources and Gao Tzai mentioned as well— how a strange individual â€Å"with exotic tales such as the eating of live children’s brains;† how Shen You-rong, an exemplary Confucian official who wrote a book collecting the panegyrics which his friends dedicated to him. 40 You can read the resume of this person already cited in the Dictionary of the Ming Biography, vol. II, pp. 1192-1194. Shen You-rong gained prestige through this action, but Gao Tzai, resenting him, opposed whatever compensation to be given to him, and in the autumn of 1606, obtained that he be sent to a secondary military post in the province of Zhejiang.Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 14 In the fourth place, and so that we may understand why the local magistrates of Fujian could not act on this problem according to their own standards, we are now going to consider the figure of Emperor Wan Li himself and his style of government, many times branded as indolent, irresponsible and indecisive, making him disregard any unpleasant advice and the remonstrations of his officers. 41 His inaction encouraged partisanship which fostered antagonism between the emperor and his court.The emperor became more withdrawn and his court dealings increasingly confined to written communication which, more than once, he would intentionally refuse to read. These descriptions of Wan Li perfectly explain the difficulties encountered by his officers, as culled from the Chinese sources: their inability to put a stop to the exploration of the â€Å"mountain of gold,† their forced collaboration with this expedition out of pure call of duty, even if they knew that they were indirectly protecting detestable fortune hunters.Consequently, during the reign of Emperor Wan Li, the coastal provinces seemed to be very much cut off from Beijing, which was why the mandarins had to choose between loyalty to the emperor and petty conflicts of local concern. And wh en the situation became out of hand, even persons like Xu Xue-ju (an honorable magistrate) sought pragmatic solutions to put an end to a hopeless predicament.This, at least, seems to be confirmed in Chapter 47 of Guo Que which makes a general summary of all that had happened in the months after the massacre: â€Å"The barbarians are afraid that China launches a punitive act against Luzon, which is why they sent some spies to Macao. However, the magistrates of Fujian and Guangdong did not want to report this. They only told the emperor half the truth, which is why the emperor only ordered the 42 people of Luzon: stop creating more problems! And thus the things remained as they were. † 41 See Ray Huang, Op. cit. , pp. 514-517.We have a most valuable testimony corresponding to the second document which Benavides translated and sent to the King of Spain, which carried a title he himself explains, â€Å"Copy of the petition which the supreme magistrate of the province or the reig n of hongkong gave to the King of China in order to persuade him not to listen to some Chinese who, in the year 1603, wanted to come from China to do battle and take the land of Luzon (Philippines) and that the King gave license and consent. † Cf. Colin & Pastells, vol. II, pp. 416-417. 42 GQ, Chapter 79 (vol. 8, p. 4917) Itinerario, vol. 23, No. 1, 1998, pp. 22-39. 15

Conflict Process Analysis

My thesis is a story of a dispute about a mobile phone and phone expenses between Telecommunication (a Chinese mobile telephone operation company) and me. I will use some organizational conflict theories, several types of conflicts and methods to handle with them to finish my dissertation. Telecommunication offered considerable discounts, while the rules were harsh. Staffs did not know the specific regulations, and I lost the best opportunity to undo the damage. The conflict occurred because of those things.Finally we overcame these obstacles with a good alternative. Handing with mobile phone affairs is close to our daily life. Moreover, it includes interest between the customer, Telecommunication and its staffs. My counterparts and I were strangers originally. Then we became game rivals through the event, and after that we became friends. Describe the situation of this dispute, the analysis of the situation and evaluations for Telecommunications are integral to my paper. Description of the Situation The owner of a branch of B & you, Flavor, two staffs, Julie and Sophie were involved in the conflict.Flavor is the boss of Julie and Sophie, and I was their customer. In August 2010, I got an admission to the university. Meanwhile, I received two discount coupons from Telecommunication (for you easy to understand, I use the B &you replacing the Telecommunication, and Flake and Julie replacing the owner's and the staffs original names). At the end of August, I went to university and went to B , planning to use the two discount coupons. One of them is for a new smart phone with which I can use it as 1700 RMI cash, and another one is for phone expenses with which I can use it as RHOMB.Julie, as a staff off branch of B (as most of TTS colleagues, she has a high quit rate because of low salary), told me that, with the voucher 1700 RMI, I could only pay 800 RMI and got a brand new Samsung phone whose price Is RHOMB. In addition, the voucher RHOMB can be sent to my phone account Into 24 months, 37. 5 RMI per month. This means that If I choose 68 ARM'S package (including mobile phone calls, text messaging, Internet), I can only pay 68 mines 37. Arm's part, which is 30. 5 RMI. Meanwhile, the contracts of the smart phone and the package were for two years.I had four years of college life. Obviously, this combination was very worthwhile. I signed a contract, paid REARMS in cash, got the phone. In the end of August, I had missed a strange call, and I did not put that In mind. On September 2nd, Julie called me to Inform me to go to B with my mobile phone. Intuition told me that something wrong happened, so I came to B with my phone and the contract. Julie told me B requested the customers to buy a mobile with the voucher in your hometown-City Changes, and to use the phone expenses voucher in your university city- Nanjing.I didn't meet the requests simultaneously, so I have to give up one discount. Due to the mobile phone cannot to e back, so I have to pay the whole package fee 68 RMI without any discount. That telecommunication company. And the regulation was too sudden for me to accept it. There was no such rule cited on our contract. Because it involves the interests of the owner of B &you branch, Flavor, she also came forward. She gave rise to the conflict. I asked to cancel the contract, however, Julie explained it was impossible. Because all the data about me has been uploaded to corporation, and the contract has been activated.She added that on the last day of August, she tried to inform about it and anted to ask me if I accept it or not, but the call was not connected. We cannot comprise with each other. Flavor insisted the contract can not be cancelled. If it was cancelled, she had to compensate for this phone (this phone belonged to B &you company). At the same time, I cannot accept the full price of the bill. For a student, 68 RMI per month was expensive. And B &you are not the most popular mobile companies. My friends tend to use Orange, whose services are better.If there had not been two vouchers, I would have not considered to use B &you. From my point of view, there are three reasons contributed to the conflict. The rules of you were harsh. Staffs do not know the specific regulations. And I lost the best opportunity to undo the damage. Julie would view the event as a big mistake, complaining about the complex rules of company. Flavor would regard the conflict as a loss in business. Apparently, the main issue was that we should we cancel the contract which the company added some rules in or not. Who should be the compromiser?The situation was deadlocked. Clerk Julie distressed. She did several things wrong. Firstly, she was not familiar with the company policy, not following the company's rules. Secondly, she id not contact me successfully at the critical moment when we can limit the damage. 1700 Arm's damage was almost half a month of her salary. I could see that she wanted to escape from the situation. Flavor did not understand the actual regulations, and she asked me blindly to compromise to reduce her loss, regardless of our contract. My feelings were angry and frustrated.At that time, another staff Sophie came over. She came up with a solution. She provided a very favorable B &you card, only 20 RMI per month, including telephone calls, text messaging, Internet. If I use this card, I still continue to use the B &you hone and SIMI card, and reach a two-year contract period. Meanwhile, owner Flavor losses can be minimized, because I follow the regulations, I only use the phone vouchers and do not cancel the contract. We have come to an agreement. After several hours' debate, we agreed with Sophie's proposal to resolve the conflict.Flavor, Julie, Sophie and I became friend from then on. We chat happily when I go to B &you branch for doing cellophane's affairs. I was lack of experience at that time, but I should say to myself for sticking to it and not compromising easily Just because the rival was a competitor. Analyzing the situation Obviously, the whole matter was an organizational conflict rather than an interpersonal conflict , as it focused on the matter itself than the relationships between the staffs and me. When Sophie supplied her free phone card, the entire conflict entered a controlled phase.If we did not enter the controlled phase, we would fail to reach any consensus. The owner may be forced to take the phone out of me, and my friend and I may be fight for it. Flavor has run a B shop at my university for almost five years, enjoying a certain reputation. She cannot make things wrong as a businesswoman, continuously asked us to comprise. , as a student, would not be allowed to use violence to resolve this conflict. The relationship between the owner and the customer restricted the conflict, and a good proposal ended the dispute. We all wanted to solve this conflict, because we were all stakeholders.In fact, there is no right or wrong in this conflict, and it is B complicated rules that resulted to the conflict. Flavor, Julie and I wanted to minimize our own losses. Flavor did not understand the actual regulations, and she asked me blindly compromise to reduce her loss, and regardless of our contract expressly provided. Apparently, she an be defined to be a competitive negotiator. Flavor only believed in something specific and credible, for instance, her less cost about the phone. So she adopted Sophie' proposal, it cost her little. Obviously, Julies response to the dispute can be defined as an avoiding approach.The avoiding approach (uncooperative, unassertive) neglects the interests of both parties by sidestepping the conflict or postponing a solutions. She was under great pressure. When conflict happened. Her body appeared compressive reaction, accelerating the secretion of adrenaline, showing rapid breath and a flushed face. She had a tendency to break down. Such reactions were bound to damage her health. When conflict was resolved, we were very satisfied. Apparently, Flavor, Julie and I will be the first three persons who observed the conflict resolved.At the time, the other staffs would notice that. This matter would bring to our friends and family later. In this conflict, no one will benefit from our conflict unresolved, so no one would want to keep the conflict. Finally, our outcomes were good. We did not lose a cellophane or paying high-priced charges. We minimized our lost and maintained a very good staff-customers relationship. Julie embedded this fault and spent more time in learning company's rules. Wrong interpretation of company policy caused this conflict between shopkeepers and the customer. Roles determine the ideas and behavior.We all tend to meet our own personal goals, as an assertiveness rather than cooperativeness when faced with the conflict. There is some potential opposition between us. They are businesswomen, paying attention to their profits and reputation, and I am a student, trying to get more discount. When conflict happened, we tend to a win- lose situation. Sophie was a mediator. Bonuses for collaboration reduced the conflicts. With her help, the estimation became an integrative bargaining rather than a distributive bargaining. We accepted the new proposal and created a win-win situation.It seems that providing a less expensive SIMI card was the best alternative to a negotiated agreement. To be honest, without the help of Sophie, I had no better way to resolve this matter. Such weakness will only make the problem deadlocked. Maybe I will consult the teacher or my parents to see if they have any good way. Recommendations The conflict was all about an up-to-dated contract should be canceled or not, including the shopkeeper Flavor, the staff Julie and the customer me' s interests. We signed a contract about two discount coupons at first. Then B & you added some harsh rules about it.

The likely implications of a large country engaging in loose monetary Essay

The likely implications of a large country engaging in loose monetary policy for exchange rates - Essay Example The central banks of the economies play a pivotal role in the economic systems for prescribing the monetary policies in the respective nations. The fiscal authorities are in turn checked by the governments of different nations (Gerlach and Wensheng, 2004). In order to efficiently trade in the global economies, the countries in the modern economies use the purchasing power parity conditions to analyze the relative worth of different currencies in an economy. Exchange rate is the modern jargon used by the contemporary economies to judge the terms of trade conditions of nation. This essay will show how the monetary authorities of large economies in the modern world have liberalized or loosened their economies in order to adjust their exchange rates according to the market and sustain a favourable value of their terms of trade in the long run (Keohane, 2013). Situation Analysis Exchange Rate Issues Exchange rates are the rate that defines the value of the currency of a country in terms o f the value of the currency of another country. Exchange rates are either measured in nominal or are measured in real terms. In real terms, it is the ratio of the aggregate price level in the foreign economy to the value of the aggregate price level in the home currency. ... On the other hand, the goods and services available in the foreign markets tend to become expensive to the country. In such situations, the exports of the country become cheaper in terms of value than the imports. The country would demand for less foreign exchange (lesser imports) and possesses an excess supply of the foreign exchange (higher exports). This would thus induce the price of the value of the exchange rate (supply > demand) in the market to fall. A fall in the exchange rate would actually imply the fall in the value of currency of a nation in terms of the currency of another country. Thus in the modern world, monetary authorities constantly try to manipulate and keep the exchange rates suitable to the economic environment of the respective nations (GBM, 2013). Macroeconomic Imbalances The countries in the contemporary world are found to have macroeconomic imbalance conditions. The causes behind the imbalances have been associated with both the internal and external affair s of economies. In some nations like Netherlands, the economy is facing high surplus in the current account but the household debt of the country is increasing at a rapid rate. Moreover, the property bubble (rise in the real estate prices) in the economies of Spain, U.S., Ireland etc have resulted in the heightening of the level of government debt and crisis in the economy. Since 2009, the global financial crisis in the economies of the western world has created a trickledown effect in the less developed economies in the world like India, Brazil etc. As after the emergence of globalization and liberalization, economies in the contemporary world have become entangled with each other. Thus, the macroeconomic imbalances in the form of

Child Soldiers in West Africa on Security in Europe Article - 1

Child Soldiers in West Africa on Security in Europe - Article Example In West Africa, human security has become a serious issue. The security maintenance has been spoiled in past few years, the reason might be any external or internal. (Diallo and Possà ©mà ©-Rageau, pg. 8) An estimated value of the world child labor report shows that 246 million children between the ages of 5-17 are under child labor category. The highest number of working children is found in Asia, then Africa and then in US, Middle East, and other countries. Although the greatest number of working children exists in Asia, Africa has greatest child labor ratio according to its population. (Finken, pg. 4) The aim of this paper is not to focus on the child labor issue but specifically child labor in form of soldiers’ issue. Throughout the world, about 87 countries have such a setup in which children are used as soldiers. A number of children are under training and many have been passed all the training and actively participating in wars, combats and certain other actions. According to the child soldier report 1379 report; child soldiers are defined as: â€Å"†¦any person under 18 years of age who is a member of or attached to the armed forces or an armed group, whether or not there is an armed conflict. Child soldiers may perform tasks ranging from direct participation in combat; military activities such as scouting, spying, sabotage, acting as decoys, couriers or guards; training, drill and other preparations; support functions such as pottering and domestic tasks; sexual slavery and Forced labor.† â€Å"Not surprisingly, the laws of war, the rules that govern how conflict is waged, and even human rights law, do not go far enough, and children, women and the family must bear the cost, precisely because they are together essential pillars in society. War today just simply does not match the traditional conception of two opposing armies; or even of an internal conflict pitting an armed opposition force against the established government, in which each side generally abides by the â€Å"rules of the game†, respecting the basic inviolability of civilian non-combatants and the special protection due to the young.’

Application of concept Analysis to Clinical Practice Essay

Application of concept Analysis to Clinical Practice - Essay Example Teamwork is considered a major facilitator for effective communication in various clinical settings. However, the meaning and nature of teamwork requires an in-depth research for effective translation of the concept into practice. As healthcare systems are regarded as organizations, teamwork helps to create more adaptive and productive working environments facilitating positive and cost-effective outcomes. Healthcare institutions throughout the world advocate the need for development of effective healthcare teams. Many researchers have even warned that lack of teamwork amongst healthcare individuals can lead to unsafe patient care practices. Better communication and understanding among healthcare professionals may reduce medication errors and effect patient outcomes positively. The lack of conceptual clarity with regards to actual representation of the concept is one of the major hindrances in clinical practice. ... thod as a concept may imply number of meanings in different contexts and it is important for clarification of concept to be explored according to its unique context. As the understanding of teamwork concept was merely addressed in healthcare theories, the authors compared their findings with theories from organizational theory literature. In first two steps of the process, the concept of team work was identified and purpose of the analysis was established. The study aimed at providing useful definition for the concept within healthcare, which also has implications for future research. Along from nursing, other literature was also searched to prevent biasness of opinion. Various databases including, Medline, CINAHL, Web of Science and Cambridge Scientific Abstracts were searched for terms ‘team working’, ‘teamwork’, ‘team’ and ‘team working’ to screen titles. Existing definitions for the concept were also deeply researched from liter ature published in the last few decades. In the next step, the uses of the concept were identified. It is critical to note here that though the concept should be examined across different disciplines, but complete explorations can sometimes also render the results impractical. For instance, in human resource management, teamwork increases the expertise and skills of the employees. Learning capabilities are nourished and enhanced through team work in educational settings. In healthcare, team work reduces medical errors to a greater extent improving patient outcomes. Multiple definitions for ‘Team’ and ‘Work’ were both combined and separately sought and analyzed from various English as well as medical dictionaries for better understanding of the combined term. Some attributes of teamwork were also determined in the next

Immigration in the United States Essay Example | Topics and Well Written Essays - 750 words

Immigration in the United States - Essay Example Through out the world people strive to maintain and higher their standards of living and thus America being an attractive country for standards is a ideal place for people to immigrate to. These illegal immigrants are both beneficial and harmful to the United States of America. This article would further discuss the topic of illegal immigration in the United States of America. Neighboring countries of Mexico and Cuba have mainly created the wave of illegal immigration currently prevailing in the United States. These illegal immigrants have a great effect on the internal structure of the country and also have an effect on the economy of the country. People immigrating to the United States have a basic reason of maintaining their living standards or get united with their families currently living there (Dudley, 2002). Illegal immigrants have yet not been allowed by the government of United States to live and work on the land with their consent. This is mainly because of the damages caused by these immigrants through out the country. The immigrants currently living on the land of United States is increasing rapidly and is making the situation alarming for the authorities. The population of the whole country is increasing day by day and thus the problems in the country are increasing. Illegal immigrants have a direct impact on the employment rate of the Nativ e Americans. This is because of the cheap labor provided by these illegal immigrants to the employer. And naturally due to the cheap labor provided by these illegal immigrants they are preferred by the employers. It is estimated that these immigrants have dislocated 730,000 jobs in this process (Hazen & Lane, 1998). On the other hand these illegal immigrants add up to the already congested traffic in the United States of America. The required formalities before driving are not met by these illegal immigrants and thus these illegal immigrants are involved in more fatal accidents on the road. These illegal immigrants not only break the rules of the state but also destroy the image of the state. However on the other hand these illegal immigrants have been of a great benefit to the whole economy of the United States. The jobs done by the illegal immigrants through out United States are solely done by them and are not done by any other Native American. These illegal immigrants are specia lly being called upon by employers so that they can work on particular jobs which can only be done by them. This helps to fill the requirements of the United States in terms of labor. Similarly it is also commonly said that the illegal immigrants are not openly paying taxes to the government and are therefore affecting the whole economy of the United States. However with the help of a massive research campaign it was found out the illegal immigrants are paying taxes in accordance to the states policy. Illegal immigrants helped to make $428 dollars to the states gross domestic product in the year of 2006 (Newman, 2006). This shows that even without the documents these illegal immigrants are partially paying the taxes of the state. It is shown through extensive research that immigrants play a vital role in stabilizing the economy of the United States (Flash, 1965). They also play a varying role in different work fields and bring both skilled and unskilled labor to

Annotated Bib Bibliography Example | Topics and Well Written Essays - 250 words

Bib - Annotated Bibliography Example Study asserted that the impact of violence affected human resources, their employment, and their economic activities, thus, resulting to losses in the gross domestic products (GDP). Power fixes the outcome of political decisions. The theory of political movements illustrated that those who are able to wield power imposes to opponent the strategy that must be adopted. As such, the underpowered is compelled to comply terms or be punished. Dobbs argued that Cuban missile crisis is a case of presidential power and security management. He argued that the issue is better understood within the context of the limits of presidential power and of crisis management. Since this involved nations, it is personality-based politics is significant for negotiations. 8. Blight, J. (2004).The Cuban Missile Crisis: Considering its Place in Cold War History. Choices for the 21st Century Education Program. Watson Institute for International Studies. Brown University. pp 1-55. The world was almost unleashing nuclear war amid Cuban Missile Crisis in October 1962. The United States under former president John F. Kennedy discovered the weapons by the use of U-2 spy planes which created tensions between Americans, Cubans and Soviets. The document proposed recommended readings for academic studies. Good for

LEGAL IMPLICATIONS IN HUMAN RESOURCES CASE ASSIGNMENT 1 EMPLOYMENT LAW Essay

LEGAL IMPLICATIONS IN HUMAN RESOURCES CASE ASSIGNMENT 1 EMPLOYMENT LAW - Essay Example There have been a number of changes in terms of the industrial environment and employment laws due to the changes in terms of the global economic environment. It is the responsibility of the company to ensure that all human resources are managed and work in sync with the labor laws and employment laws. Here this plan includes detailed explanation of the changes in the laws and this will prove to be beneficial for the human resources team to deal with the various employment laws across the various locations. The next sections will deal with the changes in the employment and labor law. Changes in Employment and Labor Law: There have been a number changes and amendments in the employment labor laws. The subsections below detail these changes. a) Equal Employment Opportunity and Health and Safety Act: The government has implemented laws like EEOQ and OSHA in order to control issues like age and gender discrimination. All the states where the company operates including the two locations i n India follow the federal labor department regulation (The U.S. Equal Employment Opportunity Commission). Here it has been set down by law that the countries cannot discriminate among employees based on the age, gender, nationality, race, color, or disability. Also, it is mandatory for the firms to provide the employees with sufficient health and safety benefits. Here it has been altered to ages of 18 to 55 (United States Department of Labour). b) Human Trafficking: One of the most recent changes in the employment law was the human trafficking. The issue of human trafficking has been intense and here people are forced to move out of their home or country and are forced to work for low or no pay at all (Students & Artists Fighting to End Human Slavery). This law has been revised and the law now states that people below the age of 18 if exploited for profits through different means like prostitution will be severely punished under the first degree punishments. Locations like India, I ndiana, Kansas and Florida do not allow people to be pressurized or manhandled to work without pay. India has taken a number of steps to help reduce the issue of human trafficking and the country has strengthened its human trafficking law to a great extent (Students & Artists Fighting to End Human Slavery). The state of Kansas has also included a strict penalty for human trafficking. It is crucial for the firms to be clear about the law and to pay the employees correctly based on the regulations set down by the employment law. c) Minimum Wages: The minimum wage has also been increased as of 1st January 2011 and now companies are expected to pay a minimum of $7.35 per hour (United States Department of Labour). However in terms of other locations like India and Tennessee there are no set minimum wages. d) Prevailing Wages: There have not been major changes in terms of the prevailing wages. The companies are expected to pay the fringe benefits and also the bonus activities as per the l ocal going rate (Employee Issues). The main change occurred in this employment law is related to the equal pay and fringe benefits for the private sector employees as the government sector employees are gaining. It is crucial for the company to provide the employees with the minimum wages and the prevalent benefits as per the different locations like Hawaii, Indiana, India and

Pig Growth Rates in Vietnam Article Example | Topics and Well Written Essays - 2000 words

Pig Growth Rates in Vietnam - Article Example The data of litter mortality, birth weight, farm of origin, year of birth, and weight of big after twenty one days concerning a sample of one thousand pigs were collected and recorded. The purpose of the study is to compare growth performance of these two breeds of pigs by analyzing the effect of the different factors monitored in isolation and combined on the growth of pigs represented by their average weight after twenty one days of their birth. To determine the relationship between the Day 21 average piglet weight and the various influences monitored during the experiment such as breed, farm of origin, year of birth, litter mortality and birth weight, the following Ordinary Least Squares (OLS) regression analyses were examined: The non-numerical value of Breed was coded numerically so that Breed equals one for Landrace (L) piglets and equals to zero for Yorkshire (Y). Regression analysis was applied with the numerical representation of breed as the independent variable and the dependent variable Day 21 average weight. Table 1 summarizes the results of the regression analysis. Table 1 shows adjusted R-squared of -0.00078 which means the independent variable breed predicts 0.07% of the dependent variable Day 21 average piglet weight. T-stat for this variable is 0.46674 so it is statistically insignificant. Both values indicate changes in breed do not affect the Day 21 average piglet weight. Regression analysis was applied... 0.000218 Adjust R2 -0.00078 Standard Error 0.793569 Observations 1000 Table 1 shows adjusted R-squared of -0.00078 which means the independent variable breed predicts 0.07% of the dependent variable Day 21 average piglet weight. T-stat for this variable is 0.46674 so it is statistically insignificant. Both values indicate changes in breed do not affect the Day 21 average piglet weight. 4.2 Analysis II: Relationship between Day 21 Average Piglet Weight and Farm of Origin The non-numerical value of the farm-of-origin variable is numerically encoded to allow statistical analysis of the variable using the following code shown in table 2. Table 2: Encoding of Farm of Origin into Number Farm of Origin Numerical Code A 1 B 2 C 3 D 4 E 5 F 6 G 7 Regression analysis was applied with the numerical representation of farm of origin as the independent variable and the dependent variable Day 21 average weight. Table 3 summarizes the results of the regression analysis. Table 3:Regression results for Day 21 Average Piglet Weight as a function of Farm of Origin Independent Variable Enumerated Farm of Origin Dependent variable: Day 21 Average Piglet Weight Constant 5.038045 Coefficient -0.04348 T Stat -2.87992 R2 0.008242 Adjust R2 0.007248 Standard Error 0.790379 Observations 1000 Table 3 shows adjusted R-squared of 0.007248 which means the independent variable farm of origin predicts 0.7% of the dependent variable Day 21 average piglet weight which is still a small influence but with more effect than the breed variable. T-stat for this variable is -2.87992 so it is statistically significant. Both values indicate the limited effect of breed in Day 21 average piglet weight. The Day 21 weight can be predicted to some limited extent using the equation: Day 21 Average Weight

Science Fiction Project Term Paper Example | Topics and Well Written Essays - 1000 words

Science Fiction Project - Term Paper Example Though, it was difficult to detect them with naked eye, but advanced technological tools made it possible for the governments to know of their presence. Aliens from Jupiter landed on Earth. They were imperceptible, swift in movements, famished for Earth’s deeply hidden mineral resources and liked to breed in isolated locations. Hence, their presence was unobtrusive until the global environment changed drastically towards demotion. 12 year old Clare in her small trailer house began to wonder the change in the weather of Southern Rocky mountains of Colorado. She has always been intrigued by the natural resources of Earth and the spiritual ability of it to produce more and more for the sake of human welfare. She preferred life close to nature and hence, never let go a chance to see and feel the mysterious hidden and ignored beauties on Earth. The feeling of being close to nature gave her powers to feel the indescribable feelings, which left her speechless and full of undeniable strength. Although, she never shared it with anyone, but whenever she came back from mountain hiking trips, ocean swimming voyages, surfing desserts and roving in forests, her connection with nature was beyond description. The strength and connection she felt, the strange myths she heard in the air and the soft melodies of night told her all the secret stories of mysterious Earth. But this time her hiking trip in Colorado was different, she could feel the presence of Earth and someone else. Often, she was distracted and disturbed by the swift passage of heat and air. Earth was telling her something, but she couldn’t comprehend it yet. Moreover, weather was immensely warm despite of the fact that these hills were supposed to be cold due to their tropical climatic attribute. Clare could feel the presence and the change, and the inevitable was not a likable prospect; a coming of danger she sensed at all times. Lately, Umer could see abundance of

Unanswered Prayers Essay Example for Free

Unanswered Prayers Essay Some people claim that when they pray, they can feel God’s presence, and that he is listening. These people are usually Christians. However, other people say that when they pray in church and at home, they cannot feel God’s presence. This can sometimes make them feel like they are doing something wrong, such as they are not praying correctly, or just that God simply does not exist, so there is no God to listen to the prayers. This may lead them to ask for advice from people who are strong and faithful Christians, and try harder when they are praying. However, if they still don’t feel the presence of God when praying, they may begin to question the actual existence of God. This can sometimes lead to agnosticism or atheism. Another reason that may lead people to believe that there is no God; are unanswered prayers. Christians believe that God answers their prayers, and loves and cares for everyone. In church, they may be given examples of answered prayers. For example; many Catholic Christians believe that St Jude is the patron saint for those who have no other hope of help. However, when some people pray, their prayers are not answered and they may begin the wonder about a God who answers some people’s prayers, but not others. For example; a young missionary couple asked the members of their church to pray that they would have a safe journey to their new posting in Nepal. However, the plane crashed killing them and their three young children. Examples like this may make people ask why God answers only some peoples prayers, and not everyone’s prayers. They may come to the conclusion that God is in fact bad, and does not care for everyone on Earth. It might make them believe that God just can’t answer everyone’s prayers, as some prayers are selfish, and answering them would come with great consequences. However, it might trigger them to come to the conclusion that God just simply does not exist. They might believe that, if someone prays for their child to be cured of cancer, then surely it would be a good enough cause for their prayer to be answered. If the child still dies, the child’s parents might believe that God does not exist, because the God they were told of would not let a small child die. This leads to atheism, as they will eventually come to the conclusion, that if prayers are unanswered regularly, then there must be no God.

Accomplished Senior Level Accountant Resume Essay Example for Free

Accomplished Senior Level Accountant Resume Essay SENIOR ACCOUNTANT / AUDITOR Accomplished Senior Level Accountant with exceptional analytical skills and in-depth knowledge of internal controls concepts.   Expertise in conducting operational and financial audits and identifies and implements business process improvements.   Effectively writes recommendations to strengthen internal controls resulting in improved operational efficiencies.   Excellent communication skills. Fluent in English Chinese   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   CORE KNOWLEDGE AREAS à ¼Ã‚   Internal Controls à ¼Ã‚   Superb Organizational /Analysis Skills à ¼Ã‚   Staff Development Training à ¼Ã‚   Policies / Procedures à ¼Ã‚   Operational / Financial Audits à ¼Ã‚   Team Leadership RELEVANT PROFESSIONAL EXPERIENCE ILLINOIS DEPARTMENT OF INSURANCE, Chicago, IL  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2001-Present Auditor-in-Charge (2006-Present) Staff Auditor (2001-2006) As Auditor-in-Charge, conducts audits through formal walkthroughs of accounting processes, internal control evaluation and testing, risk assessments high level analytical review, business organization and strategy analysis, and consideration of fraud. Develops audit procedures. Developed and maintains the audit budget, tracking any deviation and reporting it to the Supervisor. Prepares audit summary reports with documented audit findings and recommendations. Facilitate information requests from audit team members to accounting personnel ensuring a smooth workflow process. Mentors new hires on career development through on-the-job training. In the capacity of Staff Auditor, conducted financial audits of large insurance companies such as Allstate Insurance Company, Zurich Life Insurance Company and Country Insurance Company. Successfully audited over 30 various companies and performed substantive audit procedures to test the validity of financial information. Documented audit procedures and testing conclusions. Analyzed/validated financial data regarding material assets, net worth, liabilities, income and expenses. Verified large amounts of asset and liability account balances in excess of $1 billion. Provided corrective actions for companies to avoid fines and license suspensions. ADDITIONAL WORK EXPERIENCE CENTER FOR ECONOMIC PROGRESS, (City/State)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2003-Present Voluntary Tax Preparer Prepared federal and state income tax returns using TaxWise for hundreds of low income families. COMPUTER SKILLS Microsoft Word  ¨ Excel    ¨Ã‚   ACL   Ã‚ ¨ TeamMate Audit Management System EDUCATION UNIVERSITY OF ILLINOIS-CHAMPAIGN, Champaign, Illinois Bachelor of Science, Accounting, 2001 CERTIFICATIONS Chartered Property Casualty Underwriter (CPCU), 2005 Fellow, Life Management Institute (FLMI), 2004 Certified Financial Examiner (CFE), 2004 Certified Public Accountant (CPA), 2003

Jetblue Airways SWOT and Financial Analysis

Jetblue Airways SWOT and Financial Analysis Executive summary In this report, the financial position of JetBlue Airways Corporation, a low-fare, low-cost passenger Airline Company serving the US market, is studied in order to provide recommendations to the company with regards to its investments plans. By the year 2003, the company is intending to support its growth through the acquisition of several new aircraft over the coming 13 years. The company will thus need a high capital expenditure to support those acquisitions, as well as several related investments. For the purpose of this study, a SWOT analysis of JetBlue as by its position in June 2003 is performed. A background research is conducted in order to assess how other airline companies are financing their aircraft acquisitions and other investments, and in a broader aspect, study the specificities of their financial structures. The different financing alternatives available to the company are presented and studied in relation to the financial position of the company. A non-financial analysis of the debt and equity options is conducted, in order to assess the relevance of each of those options with regards to all areas of the business other than finance. The outcomes of those analyses are combined and a recommendation is issued to the Chief Financial Officer of JetBlue: It is recommended that the company issues common stock in order to finance the needed investments in the second half of 2003. In a longer-term perspective, it is recommended to the company to use leases and secured debt for the upcoming aircraft acquisitions when favorable terms are available to the company, and to finance the remaining parts of the investments through cash generated from operations and through issuance of new equity, in order to compensate for the increasing financial and operational risks of the company. Problem Definition JetBlue Airways Corporation is a low-fare, low-cost passenger airline company serving the US market. The company completed an IPO in April 2002, around two years after it was founded. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. The company, as by July 2003, is seeing several opportunities to grow by adding new markets and new flights to existing destinations. To accomplish this growth, the company is seeking to purchase 65 new Airbus A320, with an option to buy additional 50 ones, and also committed to purchase 100 Embraer E190 aircraft, with the option to purchase 100 additional ones. The company needs thus to think about a way to finance those acquisitions, as well as other needed investments such as spare parts, new engines, additional hangars and a flight training center. John Owen, the Chief Financial Officer of JetBlue, is in charge of finding the best financing scheme for the company. The problem facing John Owen is twofold: First, he needs to finance the acquisitions planned for the second half of 2003. Indeed, for the period from July 1 to December 31, 2003, the company has committed to purchase 8 Airbus A320 aircraft, for a total amount of $305 million to be paid in 2003 (Exhibit 8). The company is generating cash from its operating activities that amounted to $129,725 thousand for the first half of 2003, and already generated $238,989 thousand from financing activities (Exhibit 6). This will cover for part of this capital expenditure estimated at $570 million for 2003 (Exhibit 9). So John Owen needs to finance the remaining part of this capital expenditure. Second, John Owen needs to think about a long-term financing strategy. Indeed, JetBlue is committed to the purchase of 207 additional aircraft for a total amount of $6.86 billion over 8 years. Owen has to think about the best capital structure for the company and thus the best financing strategy for JetBlues investments, including the aircraft acquisitions and the related investments. SWOT Analysis Strengths The first strength of JetBlue is its founding teams background. Indeed, the company was founded by a veteran in the low-fare airline industry, backed by a group of private equity firms. The management of the company has also the expertise of leading a publicly held company, following the IPO in 2002. The company has a successful business model and exhibits strong financial results, as well as strong revenue growth despite the downturn in the industry following the terrorist attacks of September 11, 2001. Thus, JetBlue is a perceived as a solid and growing company by the investors. The low operation costs of JetBlue are one of the most important strengths of the company. The company is utilizing aircraft efficiently generating more revenue per plane. The company is also operating one type of aircraft, the Airbus A320, thus lowering maintenance and training costs and spare parts needs. The workforce of JetBlue is non-unionized and does not benefit from strict work regulations. The distribution costs of JetBlue are also low. Indeed, the company does not provide any paper tickets. The company operates only new airplanes, thus minimizing maintenance costs and offering a good â€Å"flying experience† to its customers. The company also benefits from its reliable on-time performance, comfortable airplanes, and friendly flying personnel to attract and secure its customer base. The company serves densely populated cities in underserved airports, with high fares. This strategy helps the company capture market share in these segments. The company is financing its existing aircraft through secured debt and operating leases, on favorable terms. Those financing possibilities are still available for the company for additional aircraft purchase. Weaknesses A considerable weakness of JetBlue is its small size. The company is operating 42 aircraft, for 73 flights per day and annual revenues of $635 million. The company can probably not rely on its personnel loyalty, due to the non-advantageous working conditions and regulation. The company is operating only one type of airplane, the Airbus A320. This represents a weakness for the company as well. Indeed, the planes have the same age and might all suffer at the same time from an eventual recurrent technical problem on this type of aircraft, which should be catastrophic for the company. JetBlue does not have a line of credit, or short-term borrowing facility. Therefore, the company depends on its operating cash flow to finance its short-term and working capital obligations. The balance sheet of the company also needs to be strengthened. JetBlue also faces one of the airlines principal risks which is the rising fuel price. The company is spending a considerable amount of money in hedging for fuel prices volatility. In addition, as the company is relatively consuming low volumes of fuel, it can suffer from significantly higher prices in case of fuel shortage. JetBlue is a levered company. With a short-term debt of $26,580 thousand and a long-term debt of $731,740 thousand as by June 2003, and equity of $480,594 thousand, the companys leverage ratio is 157.8%, whereas the industry average is around 129.46% (Infinancials). Opportunities Internal The purchase of the new 100-seat Embraer E190 aircraft would allow JetBlue to enter smaller markets while maintaining low operating costs, and increase flight frequency on existing routes. The private placement of convertible debt proposed by JetBlues investment bankers would provide sufficient capital at relatively low interest rates. JetBlue is a fast growing company, and should thus bear having less debt. The company has thus the opportunity to raise additional equity. External The low fares offered by JetBlue would allow it to attract new passengers who might otherwise not fly. The mid-sized market that JetBlue intends to enter will represent a new opportunity for growth to the company. By expanding its activities, the company will purchase larger volumes of jet fuel and would thus have more leverage in procuring fuel than today. The company will thus suffer relatively less from fuel shortages. Threats Internal The company is intending to grow and become an airline company â€Å"like the others†. JetBlue might thus lose its advantages from being low-cost, small and highly profitable. The company is clearly departing from its strategy, which has been the source of its strengths up to 2003. JetBlue plans to purchase a new type of aircraft, the Embraer E190. This is again a departure from the companys initial strategy which is to operate only one type of aircraft. JetBlue might thus incur higher maintenance and training costs, higher spare parts and engines costs, and some negative impact on the maintenance scheduling. JetBlue plans to increase its aircraft fleet from 45 to 252. In addition, the company plans to invest in other domains such as spare parts, new engines, additional hangars and a flight training center. This represents a very big investment and thus a consequent threat for the company. Such an investment will let the company more exposed to financial distress and raises the question of the management ability to cope with such a rapid expansion. The company board members are very concerned about dilution. There is a threat that they will not support John Owen, the CFO, if he recommends to raise new equity capital. With the rapid expansion of the company, the jet fuel expenses, as well as the cost of their hedging will grow rapidly. The company will be more exposed to both the fuel price volatility and the growing cost of hedging it. As the company will get bigger, with higher manpower, those might want to be unionized. External The fuel price is also an external factor due to its non-predictable volatility. JetBlue plans to be the launch customer for the new Embraer E190 aircraft. Although this allowed probably the company to have a price discount, it is also a threat. JetBlue might be exposed to technical and/or non-technical problems that have been not detected by the manufacturer or other users of the jet. The reason for the company to go public was to wean off its dependence on the venture capital and private equity industries. Issuing private debt securities represent a threat for JetBlue as this might lock back the company to such private investors. In addition, those investors and the private investors in general might not be interested by the eventual convertible debenture issued by the company. JetBlue is a small client of Morgan Stanley, the investment bank in charge of proposing financing alternatives for the company. Morgan Stanley might thus charge heavily JetBlue, and/or try to bias the companys choice for its benefit. The competition from other low-cost and regular airline companies which might try to counter JetBlues expansion. The revenues of the company and its growth aspirations are subject to the economic conditions. An economic downturn or additional terrorist attacks might impact negatively JetBlues ability to finance its debt obligations. The company will also have to secure additional airport gates which will represent a threat for the company in case it cannot negotiate advantageous conditions as with underserved airports. The alternatives In order to finance the acquisitions planned for the remaining part of 2003, JetBlue received two financial propositions from the investment banks. The first alternative is to issue additional 2.6 million shares at an estimated $42.50 per share. JetBlue will thus be able to raise up to $110.5 million. The fees and commissions of the bank for this proposal amount to $3,591,250 which represents a cost of 3.25%. The second proposal from the investment banks is to issue $150 million in a private placement of convertible debentures. The debentures will be a 30-year convertible debt with a coupon rate of 3.5%. In addition, the debt will be convertible into shares of JetBlue at $63.75 per share, which represents a conversion rate of 15.6863 shares per $1,000 principal amount of notes. The notes will be unsecured obligations and will rank equal in right of payment with all other unsecured debt. Currently, all of JetBlues debt is secured. The bank will not charge any additional fees for this alternative. JetBlue can consider some other alternatives as well. Indeed, the company can issue some preferred stock. This stock might be considered as equity in accounting, to strengthen the balance sheet of the company, but will at the same time accommodate the board members concern about dilution. This preferred stock option might however fail to attract investors. Another alternative might be the issuance of simple corporate bonds. The coupon rate for those will however be higher than the 3.5% of the convertible bonds. This option will thus cost more for JetBlue than convertible bonds, especially before the companys shares price eventually exceeds $63.75. Issuing public corporate bonds will have higher cost for the company as well. Indeed, those need to be ranked by some ranking agencies and will have higher coupon rates (Exhibit 12). Two other alternatives exist for JetBlue, for the aircraft acquisitions financing: The operating lease and the secured debt (each acquisition debt is secured by the acquired aircraft). Those two options are available for JetBlue at advantageous conditions. Thus, the alternatives that will be retained for the remaining of the analysis are the operating lease and secured debt for the aircraft acquisitions, and the equity issuance and the convertible private bonds for the acquisitions and the other investments. Background Research Some background research has been performed in order to assess how other airline companies are financing their aircraft acquisitions and other investments, and in a broader aspect, study the specificities of their financial structures. This study included some regular as well as low-cost airline companies. British airway, for example, is financing its aircraft acquisitions through debt, all of which being asset related. The group is principally using finance leases and hire purchases contracts to acquire aircraft (British Airways Annual Report 2010, p.104). Delta Airlines, on its side, is using pass-through certificates to finance aircraft (Delta Airlines Annual Report 2010, p.34). In addition, the company has $5.2 billion of loans secured by 287 aircraft (Delta Airlines Annual Report 2010, p.72). United Continental Holdings has a high amount of obligations, including debt, aircraft leases and financings (United Continental Holdings Annual Report 2010, p.53). A substantial portion of the companys assets, principally aircraft, are pledged under various loans and other obligations. The company also uses secured notes, equipment notes, pass-through certificates and multiple financings secured by certain aircraft spare parts, aircraft and spare engines (United Continental Holdings Annual Report 2010, p.55). United Continental Holdings also raises cash from issuance of common stock (United Continental Holdings Annual Report 2010, p.56). The low-cost airline companies seem to be, on their side, more conservative. Indeed, EasyJet is adopting a conservative capital structure policy, including a liquidity target of  £4 million cash per aircraft, and a 50% limit on net gearing (EasyJet Annual Report 2010, p.9). All of the companys debt is asset related (EasyJet Annual Report 2010, p.85). The company holds 62 aircraft under operating leases and 8 aircraft under finance leases, out of 196 total aircraft, principally Airbus (EasyJet Annual Report 2010, p.87). RyanAir, another low-cost airline company, has a fleet of 232 Boing 737-800s. The company makes its firm-order purchases through a combination of bank loans, operating and finance leases and cash flow generated from the companys operations (RyanAir Annual Report 2010, p.42). Both RyanAir and EasyJet exhibit a capital structure that relies less on debt than the regular companies counterparts, as illustrated by the following table: It is important to mention that some small airline companies choose to issue bonds for their investments as well. SpiceJet, an Indian airline company operating to Mumbai, Bangalore, Ahmedabad, Pune, Goa and Delhi issued in 2005 foreign currency convertible bonds worth $90 million to fund aircraft acquisitions (IndiaAviation, 2005). All in all, airline companies are using both debt and equity (together with other financing means, including cash flows generated from operations) to raise money. In its ‘Airlines return to capital markets article, David Knibb (2009) summarizes the ways several companies found financings: Lufthansa, Air-France KLM, British Airways, Air Canada, Australias Virgin Blue, Avianca and Indian carrier Kingfisher all issued bonds during 2009. AMR used private lenders to borrow money. Some other companies, smaller, chose to issue shares: SAS, Virgin Blue, AirAsia, Kingfisher, and Icelandair. From this study, it appears that the majority of airline companies are financing their aircraft acquisitions, apart from using cash flow generated by operations, through debt, either leases or secured debt. Other investment needs are financed either through debt or equity, depending on the companies. However, a common trend to low-cost companies seems to be their conservative financial structures, in comparison to bigger, regular airline companies. Financial Analysis of the Alternatives As per June 2003, JetBlue Corporation has a short-term debt of $26,580 thousand, a long-term debt of $731,740 thousand and equity of total $480,594 thousand (Exhibit 5a). In order to compute an average interest rate for the company, data from 2002 are used: The interest expenses for this year equaled $10,370 thousand (exhibit 4), for a total long-term debt of $690,252 thousand (Exhibit 5a), thus an interest rate of 1,5%. The tax expenses as per June 2003 are of $40,188 thousand for a total earnings before tax of $95,503 thousand (exhibit 4), thus a corporate tax rate of 0.42. From exhibit 1, the JetBlues equity beta during the period from April 2002 to June 2003 is 0.69. As per the data from Exhibit 5a for June 2003, the financial structure of the company was as follows: From the Hamadas formula, we can compute the unlevered beta of JetBlue as follows: Beta(u)=Beta(l)/[1+(1-T)*(Wd/We)] With Beta(l)=0.69, T=0.42, Wd=61.21 and We=38.79 Thus Beta(u)=0.36 In addition, from exhibit 12, the Treasury bill interest rate as of June 30, 2003 is 1.09%, this will be used as the risk-free rate of return. Assuming a market rate of return 9 points higher than the risk-free return, we can use the WACC spreadsheet in order to estimate the financial structure of JetBlue that minimizes the WACC of the company: Appendix 1. It turns out that the company has an optimal financial structure, minimizing its weighted average cost of capital, following those estimated figures. Any of the two options, either the convertible debt or the equity, will probably pull the financial structure from its current optimal position. For the first alternative, the convertible debenture, the coupon rate of this bond is 3.5%, for a total amount of $150,000 thousand. The weighted average cost of debt for JetBlue, if they issue such bonds, will be: [(3.5%*150,000)+(1.5%*731,740)]/(150,000+731,740), thus 1.84%. The financial structure of JetBlue will be as follows: Using the WACC spreadsheet, we can see the companys financial position with regards to the optimal financial structure of JetBlue following the new cost of debt: Appendix2. If JetBlue chooses the debt option, the financial structure of the company will no more be the one offering the minimal WACC. The same analysis can be done for the second alternative. Following the shares issuance, the financial structure of JetBlue will be as follows: Using the WACC spreadsheet, we can see the companys financial position with regards to the optimal financial structure of JetBlue following the raise in equity: Appendix3. From this analysis, it can be noted that JetBlue will still have a financial position that minimizes the companys weighted average cost of capital, thus maximizing the overall value of the companys stock. It can be concluded, from a financial point of view, that the best alternative for the investments planned for 2003 is the equity issuance. Non-Financial Analysis JetBlues passenger revenues knew a steady growth from 2000 ($101,665 thousand) to 2002 ($615,171 thousand). The revenues are forecasted to continue to grow up to a level of $1,796.9 million in 2005 (Exhibit 9). This revenue stability and expected high growth provide a strong confidence to JetBlue in its ability to meet its financial obligations, thus having the opportunity to issue either debt or equity. The companys assets amount to $1,565,322 thousand as per June 2003. Those assets are principally composed by operating property and equipment, which are pledged under the operating leases and secured debt of the company. If JetBlue chooses to finance its future aircraft acquisitions by debt, the acquired aircraft can be used to secure the corresponding debt. JetBlue, as any airline company, incurs very high fixed costs due to its high value operating property and equipment. The company has thus a very high operating leverage and is greatly exposed to the risk of cash flow projections errors in case it does not meet the projected revenues figures. Any variation in the estimated revenues, might lead the company to a position where it could not meet its financial obligations related to debt. From this point of view, JetBlue needs to secure its cash flows. As stated earlier, the company revenues knew a high growth for the precedent years and are expected to continue growing steadily. This high level of growth allows the company to rely on equity. JetBlue is a profitable company, in comparison to peers, as stated in the following graph: JetBlue exhibits good levels of gross margin and operating margin. Furthermore, the companys return on sales, return on assets and return on equity are higher than industry averages and the company can be said to be quite profitable in comparison to company peers. This offers some flexibility to the company to rely on debt. JetBlue has a high level of tax rate (0.42), this allows the company to have an even lower cost of debt and offers the company the advantage of being able to rely more on debt in order to minimize its weighted average cost of capital. All of the companys debt is secured. In addition, the company does not have any line of credit, or short-term borrowing facility. The company does therefore not have any control restrictions or obligations towards its creditors. The shareholders of the company are on their side very concerned about any dilution. This fear of losing the control of the company limits the possibility of the CFO to issue new equity. The founding and managerial team of JetBlue is issued from the airline industry. They are used to manage a highly leveraged and public company. They should thus have a positive attitude towards high levels of debt. They should be able to deal with the opposite aspect (issuing more equity) as well. JetBlue does not need any rating agency for the issuance of the bonds, as those are private. The alternative of issuing public bonds has been eliminated as this one will incur higher costs for the company. The lenders of the company seem on their side to have a positive attitude towards the company, which should be able to issue additional secured debt for its aircraft acquisitions with advantageous conditions. The company has been performing well in the recent years. However, many major US air carriers struggled between 2000 and 2003, and some of them filed for bankruptcy protection. The market is impacted by a general economic slowdown caused partly by the terrorist attacks of September 11, 2001. The market is also subject to big variations depending on several unpredictable factors, like political stability, weather conditions, natural disasters, terrorist attacks etc. All of this calls for some financial conservatism for the airline industry. The internal stability of JetBlue will probably continue to hold, unless the company faces some financial distress, or if the shareholders are no more supporting the management team. From a short-term point of view, John Owen might lose the shareholders support if he goes for equity issuance. From a mid to long-term point of view, he might as well negatively impact the internal stability of the company if he is not conservative enough to avoid any financial distress situation. The debt offering will afford JetBlue less financial flexibility, especially due to the jet fuel prices. If fuel prices rise, this will incur less operating income and thus some difficulties to the company to meet its additional debt service payments. Owen has also to review his hedging strategy of the fuel prices volatility: If the company chooses to hedge more of its fuel consumption, it will incur much higher hedging costs. If on the contrary the company chooses to reduce hedging costs, it will be more exposed to financial distress when the prices increase. Conclusion: The best solution JetBlues market capitalization can be estimated at around $3.12 billion (74,423,693 * $41.98) as per June 30, 2003. The company is intending to grow heavily in the following years, and has plans to acquire 207 new aircraft for a total $6.86 billion up to 2011,