Mexico's Difficulties

Hatano's expression changed.

It wasn't polite awkwardness. It was a genuine wry smile.

"You've hit the nail on the head."

He rubbed his hands together, as if organizing his words.

"Sometimes I'm quite envious of Terauchi."

Hatano let out a soft sigh and continued.

"I've been to China with Terauchi a few times. Over there in China, whether it's the mainland, Hong Kong, or Taiwan, the industrial foundation is there, and government efficiency is passable too. Even if policies are adjusted, the local communication channels are clear. Give them a heads-up in advance, prepare contingency plans, and basically you won't be caught flat-footed."

"Mexico is different."

Hatano counted on his fingers.

"Power supply. That industrial zone in Tijuana loses power three times a month. It's not maintenance. It's a real outage. The power company says the equipment is aging and they've scheduled repairs. They scheduled them half a year ago, and there's still no sign of movement. We bought diesel generators ourselves, and that pushed costs up another notch."

"Water supply is still fine. Industrial water is enough for now. But the local government replaced a batch of people this year, and the newly appointed water officials hinted that we should 'strengthen cooperation.' You know what that means."

"As for labor—" Hatano paused. "Mexican workers aren't clumsy. Once you teach them, they work pretty efficiently too."

"The problem is poor stability. They work for three months, feel they've saved enough, go back to their hometown for two months, then come back. The training cost just goes down the drain. Or the factory next door offers fifty more pesos, and the person vanishes the next day."

"And unions." When Hatano said that word, the wry smile on his face deepened again. "Last time they went on strike over an extra ten