Danzo was deliberately pressuring the nobles, exploiting their weaknesses. With the Five Great Villages now having permanent representatives in the Iron Country's Five Kage Council, most coordination matters could be handled there, leaving fewer opportunities for high-level A-rank missions.
At this point, the Daimyo stepped in and said, "Alright, let's settle this. Konoha's situation isn't easy, and this amount of money is nothing to those who want a stake in this. Let's move forward with the decision. Tonight, the Daimyo's mansion will host a banquet to celebrate the Hokage's visit—everyone, come and enjoy."
Since Hiruzen had no objections, the matter was set aside for the time being. That evening, the atmosphere at the Daimyo's banquet was pleasant, and everyone seemed to get along well.
Later that night, after returning to their quarters, Hiruzen highly praised Danzo. He hadn't expected Danzo to secure an annual revenue of 500 million ryo. This mission to the Daimyo's mansion had been extremely profitable— Kagami had previously brought back 1 billion, and now the Daimyo had contributed another 1 billion. Adding Danzo's 500 million and the 630 million received from Sunagakure, the total exceeded 3 billion, an amount equivalent to Konoha's six-year budget from the Daimyo's mansion.
With such financial backing, the idea of educational reform could finally be put on the agenda. Could Konoha implement a nine-year compulsory ninja education system? It would require significant investment, and it would take years before graduates could contribute to the village. Could Konoha's finances sustain it?
Currently, Konoha generated 400 million annually from its own revenue, with an additional 500 million allocated by the Daimyo's mansion. If the promised budget increase from the Daimyo went through, Konoha could have around 1 billion per year for discretionary spending. However, the newly reorganized Security Department also required a substantial budget, and implementing a long-term education reform would be another major expense. No matter how much money they had, it would never be enough. Expanding revenue sources was necessary, and increasing Konoha's share in trade deals with the Daimyo's trading companies would be a key strategy.
"Danzo, the Daimyo and I discussed forming a joint-stock company to manage the Fire Country's official trade caravans. There are many competing interests involved, and we'll be negotiating the shares tomorrow. I'll leave this matter to you. Keep up the good work—I trust you," Hiruzen said.
"Leave it to me. What's the minimum stake we're aiming for?" Danzo asked confidently. He knew that he was Hiruzen's right-hand man, consulted on major decisions and relied upon to handle difficult situations.
"The bottom line is 25%, but the higher, the better," Hiruzen replied. He understood that the Daimyo's administration wouldn't allow Konoha to operate unchecked. While a lower share might be acceptable, the nature of the agreement was more important—Konoha had to be a decision-maker, not just a hired force taking orders.
Homura, concerned about the Daimyo's growing involvement, voiced his thoughts, "Hiruzen, the Daimyo's mansion has always been the one commissioning Konoha's missions. If we take a share in their business, will they start treating us differently?"
"Homura, Konoha has always relied on the Daimyo's mansion for financial support. While this generation's Daimyo is favorable toward us, we cannot predict the stance of his successors. Since our founding, Konoha has remained under the Daimyo's authority, and if this continues unchecked, the influence and independence of the village will erode. Over time, ninjas will be reduced to mere enforcers for the Daimyo, rather than protectors of the nation. Right now, our ties to the Daimyo's mansion are largely ceremonial, but in the future, we will risking ourselves becoming nothing more than his personal military force—completely subservient to his rule."
"We're fortunate that Konoha is still in its early years—only two decades since its founding—which gives us an opportunity to reshape our future. The relationship between the Hidden Villages and the Daimyo's government must remain one of mutual cooperation, not subjugation. When the First Hokage established Konoha, his intent was never for us to become mere extensions of the Daimyo's rule. His vision was to bring an end to the constant wars of the ninja world and secure a better future for shinobi. If we fail to address this issue now, we will risk of losing that vision entirely—and history will remember us as 'the ones who allowed Konoha's independence to slip away'."
Hiruzen's powerful words stirred both Danzo and Homura. As the students of the Second Hokage, they had inherited his ideals. They weren't meant to be the Daimyo's enforcers—they were supposed to be shaping Konoha's future.
"Hiruzen is right. We are the inheritors of the First Hokage's will," Danzo declared firmly. "Tomorrow, I will do everything in my power to safeguard Konoha's interests."
"I will stand with Danzo in this effort," Homura affirmed. When the Hokage had spoken, there was no place for doubt.
This exchange highlighted the fundamental difference between Danzo and Homura. Danzo was a strategist—when given a goal, he would use any means necessary to achieve it. Homura, on the other hand, needed clear instructions and would follow them to the latter.
Hiruzen understood the strengths and limitations of his own subordinates. Danzo's ruthless methods were sometimes necessary, especially since there were no other individuals within Konoha who could act independently without prioritizing their own clan's interests. This was likely why Danzo would later amass so much power in Konoha.
Wanting to ease the tension, Hiruzen shifted the conversation, "Shinya, last time you had some trouble on the way to Sunagakure. This time in the capital, take the opportunity to relax—but don't embarrass Konoha."
"Lord Hokage, I will ensure that Konoha's reputation remains untarnished," Shinya vowed.
"Good. Lets get some rest and be ready for tomorrow."
In the following days, negotiations between Konoha and the Daimyo's administration were intense. Both sides argued fiercely, highlighting their own strengths while pointing out the other's weaknesses, each trying to secure the best possible deal.
The official name of the joint venture was decided: [Fire Country Trading Co Ltd or Fire Trade Co Ltd] for short. Hiruzen and his team didn't argue over the name—it was just a formality. Hiruzen himself had introduced the idea of calling it a "company," though it wasn't a common term in the Land of Fire yet.
The Daimyo's administration suggested that Fire Trade Co. Ltd. be structured with 50% ownership under the Daimyo's government, 30% shared among the nobles, and that Konoha be given priority for all escort missions.
Danzo, now experienced in negotiations, immediately saw through their ploy. The so-called "priority access" to missions was a trap that went against Konoha's strategic shift.
Without a moment's pause, he replied, "Konoha has no benefit in this arrangement. The Daimyo's administration and the nobles are free to manage it on their own—we will not participate." With that, he gathered his belongings, preparing to depart for Konoha.
The meeting room fell into chaos. One of the noble, his face turning green and quickly stopped Danzo, "Konoha is still responsible for coordinating with the other ninja forces. You can't just walk away!"
Danzo smirked. "Oh? I was under the impression that Konoha was only meant to receive priority for your missions. Your discussion seemed quite heated, yet I didn't hear a single mention of Konoha being responsible for managing ninja world affairs."
With that, the pressure was back on the Daimyo's administration.
The nobles were caught off guard by Danzo's response, struggling to come up with a reply. Their hesitation was obvious as they stammered, unable to form a coherent argument.
Sensing the tension, someone stepped in to smooth things over. They proposed an additional 20% payment to Konoha for each mission, in exchange for Konoha helping Fire Trade Co. Ltd manage and navigate sensitive relationships within the ninja world.
Danzo remained indifferent, "That's fine, we're not too particular. Our role is simply to carry out missions. However, there will be times when we're engaged elsewhere, and if we lack available personnel, we trust you'll understand."
The nobles immediately caught on—Konoha was setting up a trap. If they accepted this arrangement but Konoha later claimed to be short on personnel, important missions could go unfulfilled, resulting in significant losses.
Desperate to secure Konoha's cooperation, the nobles continued increasing the mission fees. However, Konoha remained unmoved, refusing to commit.
The standoff dragged on. The nobles were determined not to let Konoha walk away, while Konoha seized the opportunity to push for better terms.
Eventually, the Daimyo himself stepped in, urging Konoha to consider the bigger picture.
Homura, the Konoha's Hokage assistant, immediately voiced his grievances, "It's not that Konoha isn't thinking about the big picture," he explained, "but we simply can't guarantee that we'll always have available shinobi. The recent reorganization of the Guard Department has already stretched our manpower thin. Where are we supposed to find more people?"
The Daimyo's expression darkened. He was visibly frustrated, feeling that Konoha was being uncooperative. Just as he was about to direct his anger at Hiruzen, Hiruzen acted swiftly. He pulled the Daimyo aside and whispered something to him.
Moments later, the Daimyo's demeanor shifted. He turned back to the group and declared, "Konoha Village is an inseparable part of the Land of Fire."
With the Daimyo's intervention, a final agreement was reached:
° Konoha would receive 30% of the company's shares.
° The Daimyo himself would take 20%.
° The Daimyo's administration would receive another 30%.
° The remaining 20% would be split among the nobles.
Fire Trade Co. Ltd. would not establish its own caravan; instead, all transportation of goods would be handled by noble-run caravans.
The Daimyo was satisfied with the outcome, and Konoha had secured an excellent deal. The nobles, however, were left disgruntled. In the end, the Daimyo had to make additional promises to appease them.
With this, Hiruzen and his delegation had successfully completed their mission. After a few days of rest in the capital, they began their journey back to Konoha.
On the Road Back —
As they left the city, Homura couldn't contain his curiosity. "Hiruzen, how did you convince the Daimyo so quickly?" he asked.
Danzo also glanced over, clearly eager to hear the answer. Shinya and the others, intrigued by the exchange, listened closely.
Hiruzen smirked at their expressions and simply said, "I told him that Konoha has no interest in the position of Daimyo."
Shinya frowned, unable to grasp the significance of that statement. He mulled over it as they traveled.
Danzo, however, quickly understood.
Homura, on the other hand, thought about it for a long time but remained puzzled.
During a break, Hiruzen noticed Homura's conflicted expression. Turning to Danzo, he said, "Danzo, explain it to him."
Hearing this, Shinya immediately rushed over, eager to listen.
Danzo as always direct, began his explanation:
"Throughout history, the rule of Daimyo has been anything but stable. During the Warring States Period, many Daimyo families were overthrown by conflict, and even in recent decades, power shifts have continued. For instance, the Wind Country saw its Daimyo replaced by a former noble family, while the Water Country's ruling lineage was completely eradicated. Yet, despite these upheavals, one fact remains unchanged—the Daimyo has never been a shinobi."
"This means that the Hidden Villages have never been the true threat to a Daimyo's rule. Throughout history, the greatest danger has always come from within—a nation's own noble families, whose ambitions and rivalries have led to internal power struggles. The rise and fall of Daimyo families are often the result of these internal conflicts, not interference from the shinobi. In reality, a strong Hidden Village serves as a stabilizing force, ensuring that the Daimyo's authority remains unchallenged. As long as the Daimyo maintains a cooperative relationship with his own Hidden Village, his position will be far more secure against the political maneuvering of his own court."
"If the Daimyo oversteps his bounds, however… Well, let's just say he would be wise to tread carefully. I trust you can grasp the implications."
Danzo's words trailed off, leaving an unspoken warning hanging in the air. Homura finally understood.
By subtly highlighting the Daimyo's fragile position, Hiruzen reinforced the idea that Konoha was not a rival but a crucial ally. With just one sentence, he had turned the negotiations entirely in Konoha's favor.