NationStates Jolt Archive

[OOC: The move I've been thinking about and pondering for a long, long time is finally at hand. Reaction posts are welcome within reason.]

PIW To Acquire Military Companies

PORTLAND (ASP) -- The Portland Iron Works announced yesterday that it has agreed in principle to a combined $135 billion U.S. deal to acquire the Avalon Aerospace Corporation, the Incorporated Ordnance Company and the Portsmouth Munitions Corporation and create a new military conglomerate. The new company will operate under the name Portland Iron Works.

"This is a step that has been long in coming," an industry analyst said on condition of anonymity because negotiations are in the early stages. "The companies are very well integrated to begin with, so the transition should be fairly smooth once it happens."

PIW managing director Barbara Tucker, a retired rear admiral in the Incorporated Sarzonian Navy, declined to comment on the story, referring reporters to Public Affairs. However, a source close to her said the attempted buyout by We Buy Stuff! Inc. "played a role.

"This was at least in part a statement that PIW is as robust as ever," the source said. "Tucker took the attempted acquistion personally and that provided the exigence for the buyout process."

Early speculation centered on the establishment of a headquarters approximately five kilometres from the PIW's current headquarters for the new conglomerate with Tucker serving as the company's CEO. Deputy Managing Director Jamie Wilson, a former ISN commodore, would serve as the managing director of the naval company, which may be renamed the Portland Naval Works.

"The move makes perfect sense," industry analyst Geoff Baker said. "PIW footed the bill for IOC's acquisition of Pomentane Ballistics and they've got more than enough money to acquire the other two companies." Because of its specialised market, the Portsmouth Munitions Corporation would not be included in the merger.

A source familiar with the negotiations said Tucker was "adamant" that company operations for AAC, IOC and PMC under the new Sarzonian conglomerate would remain largely unchanged.

"We're not going in and ripping up everything and starting over," the source said. "Everyone's going to keep their jobs. It's just that there'll be one voice at the top. And it will just reiterate what's been happening all along. Each of the other Sarzonian companies follows PIW's lead anyway. This just makes it official."

According to the Gray House press office, President Mike Sarzo is expected to give the measure his blessing, with formal approval by the Federal Commerce and Trade Committee being considered "a formality."

"This deal is a good deal for the companies involved," FCTC spokesman Lyle Cheneyworth said. "Everyone's going to keep their jobs and PIW increases its value. Barbie Tucker will probably be the richest person in Sarzonia when this is approved."

(OOC): One huge store for all the goodies? Sounds good to me! *hands you an official Thumbs Up sticker*
I'll probably write up an IC reaction later/tomorrow.

Report: NTIC will attempt re-acquisition of PB

TIMIOCATO (PPA) -- After news out of Woodstock suggested the serious possibility of a blockbuster deal to integrate Sarzonia's major munitions and defence contractors into a single, major corporation, the National Trade and Industry Commission cried foul and its head warned that the Federal Central Government will most likely attempt to reacquire Pacitalia's second-largest munitions/defence-related manufacturer and place it under Pacitalian hands.

Pomentane Ballistics was purchased by the Incorporated Ordnance Company of Sarzonia, one of the companies mentioned in the amalgamation deal, for SZ$100bn (Đ37.59bn) this past May. The NTIC was perfectly fine with the move, but their heads have been aflurry ever since it was discovered that Portland Iron Works had a major hand in the merger-acquisition.

"We've said it before, and we'll say it again," Commission president Francesco Porantabano announced at a press conference this morning. "We do not like the way Portland Iron Works does business, and how it controls Sarzonian markets. A company that size made even bigger is just too dangerous to a domestic economic base, and if that venture fails, we would feel safer if Pomentane Ballistics had no responsibility in any possible crumbling of the Sarzonian economy."

The Pacitalian government still has its 15% share in Pomentane Ballistics and was intending to sell it, but now has apparently changed its mind while it weighs the options. Most Pacitalians, furious with Sarzonian foreign policy over the past few months, are on the NTIC's side -- 77% support any initiatives by the NTIC to bring Pomentane Ballistics back under full Pacitalian control. The move would then most likely see the government sell the 85% remanded from the Sarzonian conglomerate sold to interested private parties in Pacitalia.

PB's stock price fell dramatically on the news of the move in Sarzonia, but fully recovered, and even gained slightly on the subsequent countermove by the NTIC. One stock of PB on Mandragora's PAX800 stock exchange closed Tuesday at Đ36.52 (9.4/10R/5-06), up Đ2.19 (+5.99%) from Monday. Apart from the NTIC, the FCG had no comment on any possible economic movement on this side of the pond.

-- PPA

PIW 'open' to offer for Pomentane Ballistics
Government may be roadblock

PORTLAND (ASP) -- Reacting to a recent media report from Pacitalia about the government's intent to reacquire Pomentane Ballistics from the Portland Iron Works, company managing director Barbara Tucker said the company is "open" to selling off the unit to the Pacitalian government and was preparing an offer that included production, sales, and distribution rights for the F-530 6.76 mm special operations submachine gun.

"At the time of the acquisition by [the Incorporated Ordnance Company], Pacitalian-Sarzonian relations were much better than they are now," Tucker said. "With the erosion of diplomatic relations between the two nations, it doesn't make sense for us to have what amounts to a golden albatross."

However, government officials reacted harshly to comments by National Trade and Industry Commission Chairman Francesco Porantabano slamming PIW's business practices, with Federal Commerce and Trade Committee Chairman Lyle Cheneyworth calling it "a potential dealbreaker."

"If they want PIW to sell Pomentane Ballistics back to them, they're going to have to propose a deal that makes sense," Cheneyworth said. "Barbie Tucker's not going to gouge them but she's not going to sell it at a cut rate just because diplomatic relations are pretty much non-existent."

"Frankly, I resent the implications that we did or are doing anything untoward," Commodore Jamie Wilson (ISN-Ret.), the shipbuilding company's deputy managing director said. "Since this is now a matter of contention, all we did was float IOC the money to purchase Pomentane Ballistics. Nothing changed about the arrangement, nor would anything have changed."

President Mike Sarzo issued a statement through Gray House Press Secretary Heather Lloyd saying that Porantabano "is lying through his teeth.

"It's no secret that our countries no longer see eye to eye," Sarzo said. "However, rather than pursue a course of healing, which has been previous Pacitalian practice, they seem to be treading down a path of economic hostility. Porantabano is deliberately twisting the facts."

"We have provided all information required to the company when we initiated the acquisition," Major General David Wade (ISA-Ret.), managing director of IOC. "All negotiations were above the board and we also provided them with information leading toward PIW's acquisition of us and Avalon before the plans were finalised. They seem to be saying anything they'd like to get the company out of our hands and to sully our reputation in the international community."

Sources close to the FCTC said the commissioners are "extremely tight-lipped" about the prospects for approval of a demerger.

"On the one hand, they're eager to get Pomentane out of Sarzonian hands and sever the links between Sarzonia and Pacitalia," one source said. "On the other hand, they're not impressed with the statements by Porantabano."

"That's just hypocritical," said a highly-placed government official who spoke on condition of anonymity. "They accuse us of being too aggressive and of being arrogant with our military, but they're being just as arrogant, if not more so with their economic might."

Most sources agree that before any deal to demerge with Pomentane Ballistics goes forward, the Pacitalian government would have to make concessions. However, they disagree about the extent of concessions needed.

"That's probably going to have to be negotiated," another source familiar with the FCTC's debate said. "As much as both sides don't want anything to do with each other right now, it's going to be as ugly as any divorce."

NTIC head: "My words have been taken incorrectly"

TIMIOCATO (PNN) -- Francesco Porantabano shot back at comments made by Sarzonian officials, particularly those of his counterpart in Sarzonia, saying they "misconstrued" and "misunderstood" his comments. This comes only hours after the agency Porantabano heads, the National Trade and Industry Commission, announced it would most likely seek a reconstitution-injunction and divestiture of Pomentane Ballistics to put the company back in Pacitalian control.

"When I said [the NTIC] doesn't like how PIW does business, it wasn't a remark about their corporate practices," he said over the phone to PNN. "As far as the NTIC is concerned, Portland Iron Works is a very legitimate member of the international business community. I explained what I meant by 'how they did business' after I said that, and that is that they have too much control over the Sarzonian economy. Sarzonians, of all people, would know that Pacitalians, by their very nature are uneasy about that much contribution to the GDP and control over the economy. Just look at our nation's biggest company - Acis; it only contributes 3.41% of the national GDP."

He's not kidding about the massive control over the Sarzonian economy this move by PIW would create - already, 17-18% of Sarzonia's GDP comes from PIW's production. Acquisition of Avalon Aerospace Corporation, Incorporated Ordnance Company and Portsmouth Munitions Corporation would increase PIW's share to at least 21.75%, a conservative estimate in itself. And, according to Dr. Alberto Perrotta, head of the economics department at the National University of Timiocato, that is a dangerous mix.

"No country is safe from a recession or economic weakening as a result of internal and external factors," Dr. Perrotta said. "If PIW does, at any time, crumble from the inside, that will be a severe blow to the Sarzonian nation, and one from which the Sarzonians would probably never be able to recover. It's never safe to devote that much of a nation's gross domestic product to one single corporate entity."

Porantabano was pleased with the reactions of R-Adm. Barbara Tucker (ISN-Ret.) to the NTIC's move. "I am actually surprised that Signora Tucker was the one to react positively to my comments, as the comments about PIW directly concern her. I am happy to see that she is open to a divestiture of Pomentane Ballistics."

However, he added that the Pacitalian government will not pay any amount above the amount the company was sold for in May (SZ$100bn, or Đ37.59bn), plus or minus the current value of the company, estimated at just slightly lower than the original sale value. Porantabano said he was "ambivalent" about PIW deputy managing director Commodore Jamie Wilson's and IOC director David Wade's comments, saying "once again, I believe, and my colleagues believe, my comments were clear. Sarzonian officials have said they weren't, so I have clarified. Again, I would expect Sarzonians, of all people, to know that Pacitalians are not 'economically hostile' and 'looking to sully reputations'. They should be giving us more credit than that."

Prime Minister Ell had no comments earlier, but released a short statement saying he was "worried the procedure will be unnecessarily blown out of proportion". He strongly cautioned both sides of the dispute to "act responsibly", to "negotiate any possible settlement with all hands above the table", and to not "find excuses to add fuel to an already red-hot fire".

"This does not need to be an ignorant economic muscle-flexing contest," Ell said. "Pacitalia may be much stronger economically, but we will not use that to take advantage of Sarzonian officials. I expect the same neutral responsibility of the Sarzonians in this dispute. Anonymous sources will contribute nothing but suspicions, doubts and further misunderstanding of a simple situation that can be resolved just as simply."

Meanwhile, Porantabano doubted the honesty of the comments of the first source in an earlier Associated Sarzonian Press wire report. "I would seriously doubt a Sarzonian commission would be looking to 'sever ties' with us, unless the echelons of the Incorporated Government seriously doubt relations can be restored."

Outgoing Agustinate of International Relations Dr. Martina Mazunta-Porunobari Samothera said discussions with the Sarzonians regarding restoration of relations to their earlier levels were going "smoothly" and that there was "a two-way street of very friendly and benevolent statements", referring to the fact that there are obviously genuine intentions in both governments to return relations to their once rock-solid state.

Porantabano, however, scoffed at the comments of the second anonymous source in the ASP report. "We are not hypocrites - nobody in this dispute is, if I may say. We're going to do this honestly and with good intentions, and I'd never dream of forcing any nation to bend to our requests. The Prime Minister has made it clear that he does not want to see any sort of economic muscle-flexing from either side, and I respect those words."

WorldTech Setting Eyes on Pacitalia

WESLYN (HNN) --- Sir Clyde Thurbourne, WorldTech Industries (http://ns.goobergunch.net/wiki/index.php/WorldTech_Industries) CEO and Chairman, made his way to Pomenigiura, Pacitalia today in an effort to bring Hamptonshire's largest company into the recent action surrounding Pomentane Ballistics.

"WorldTech Industries is definitely interested in this situation," Sir Clyde said to HNN reporters on a flight to the Pacitalian city. "WorldBank Inc has several trillion kroner that it has ear-marked for 'mid-level' acquisitions. The Board feels that it would be in our best interest to explore exactly how we can help Mister Franconi and Mister Brandutto Serra. We're also interested in the Sarzonian weapons industry but, alas, only one step at a time."

As one of the world's largest companies, WTI has the financial reserves of a large nation. WorldBank Inc, WTI's main financial division, surpasses the market capitalization of the top twenty Pacitalian banks. Over the past decade, WTI has sought to expand its presence into both Pacitalia and Sarzonia through small acquisitions and joint-ventures. With Sir Clyde's trip to Pacitalia and the willingness of WorldBank to help fund the Pomentane Ballistics buyback, it seems that WTI is moving more agressively into two previously closed foreign markets.

It was also revealed that while in Pacitalia Sir Clyde will meet with several "notable" government officials. When asked for comment Sir Clyde only said, "I've got some old friends that I want to see. It just happens to be that they're in Timiocato."

Minister of Trade and Industry Decries "Monopolistic Machinations" of Sarzonia

Breningrad (ANN) - Arthur Birch blasted a Sarzonian report that declared Portland Iron Works was set to absorb Sarzonia’s remaining major arms companies in a mega-merger while Prime Minister Tetley slightly distanced himself from his minister’s non-Cabinet remarks.

Speaking at the monthly congress of the Communist Party, Minister of Trade and Industry Arthur Birch – the Communist Party’s only representative in the Prime Minister’s Cabinet – decried the merger reported by the Sarzonian press as “monopolistic machinations” certain to harm both the working class and international consumers. Birch’s criticism of the merger culminated in his announcement that he would bring before the Cabinet plans to outlaw any trade with the new monopoly and he hinted at perhaps the whole of Sarzonia.

On a tour of secondary schools in New Ireland, the Prime Minister found his education mission superseded by questions regarding the row between Pacitalia and Sarzonia. In large part deferring to his lack of information on the subject, the Prime Minister stressed that “the Right Honourable Mr. Birch was speaking solely as a member of the Communist Party and not as a member of my Cabinet.” The Prime Minister, however, added that he would be investigating the claims made by Mr. Birch as well as seriously considering his proposals “as I would any proposals by my Cabinet.”

At a second stop on his tour, following word out of Timiocato, the Prime Minister stated his “unwavering support for my colleague and friend… who is a most honourable and fair chap… who carries with him to his governance of Pacitalia the same honour, justice, and fairness.” When asked if the United Kingdom would come out in open support of Pacitalia over Sarzonia, the Prime Minister affirmed that the recent admittance of the United Kingdom into the Union of World Powers only solidified the UK’s alliance with Pacitalia but that in lieu of his statement calling for peace between the UK and Sarzonia, he would “take into consideration the views of the Sarzonian government.”

Asked about the Prime Minister’s plan for peace between the UK and Sarzonia, an official within the Tetley administration stated on the condition of anonymity that the timing by the Sarzonian press, in “obvious collaboration” with the Sarzonian government, points to the Sarzonian government’s desire to “poison the peace process.” On that, Citadel Press Secretary Victoria Clarke offered no comment and that “responding to anonymous officials, who could very well be the janitor, is neither the responsibility nor the intention of the Citadel.”

It is also rumoured that Winston Appington, the chairman of the Royal Arms Factory, is planning a trip to Timiocato, although his office could not be reached for comment.

Row angers Tucker, government

WOODSTOCK (ASP) -- With a backdrop of comments by several nations, including Azazia and Pacitalia about the proposed acquisition of three Sarzonian military companies, the Incorporated Sarzonian Government lashed out at "highly inappropriate" reactions, including proposals to sever all ties by the United Kingdom of Azazia.

"The idea that we're participating in 'monopolistic practices' is laughable in its face," said Rear Admiral Barbara Tucker (ISN-Ret.), the managing director of the Portland Iron Works. "The fact is that we are not just competing on a national stage. We're attempting to compete with a shipbuilding industry that includes companies such as the Royal Shipyards of Isselmere-Nieland and the Imperial Praetonian Shipyards.

"All this move does is centralise operations and ensure that there is one voice at the top," Tucker said. "Nothing else changes. Our companies all share the same databases, operate the same discounts, and place the same customers on our respective black lists."

Since the inception of the Avalon Aerospace Corporation and later, Incorporated Ordnance Company, the companies have essentially operated as one even though all three companies had their own boards of directors and managing directors.

"If a customer makes two purchases at the Portland Iron Works and then purchases from us, we give them the discount they would receive as if they purchased from us all along," said Major General Stephen C. Wilcox (ISAF-Ret.), the Avalon Aerospace Corporation's managing director. "Our policies have all pretty much been the same. This just formalises it."

The Sarzonian government didn't comment on rumours that Sarzonia was interested in mending fences with Azazia, but suggested that the comments by Azazian Minister of Trade and Industry Arthur Birch blasting the move "are counterproductive to say the least.

"That sticks a monkey wrench into any plans to repair relations between our governments," a source within the External Affairs office said. "We appreciate the fact [Prime Minister Alasdair] Tetley didn't wholeheartedly support those comments, but you can bet we'll have second thoughts about diplomacy now."

President Mike Sarzo reacted sharply to comments by Porantabano questioning the honesty of the Federal Commerce and Trade Committee and his attempt to clarify his remarks.

"It's just the same old political excuse, 'my comments were taken out of context'," Sarzo said. "I played that tape over and over again and you could see the hostility oozing out of every fibre of his being." Sarzo also reacted to Prime Minister Timothy Ell's efforts to restore relations to prewar levels by saying "it would take a miracle.

"There are too many hard feelings right now between Pacitalians and Sarzonians for the tensions between us to be resolved by anything other than a major undertaking that would involve maximum effort by both governments," he said. Outgoing Agustinate of International Relations Martina Mazunta-Porunobari Samothera "doesn't seem to recognise the new reality," with her comments that negotiations were going smoothly.

"We hadn't even gotten to the negotiating table," Sarzo said. "Since our initial efforts to restore relations, much has happened to create further injury.

"They say we should give them more credit," Deputy Senior Vice President and External Affairs Officer Grant Haffner said. "Frankly, after all that's gone on between us, they've blown whatever diplomatic capital they once had. It's back to the ground floor as it relates to damage control."

"We've bought from PIW before and must say we're impressed with the quality of their items. We congratulate them on this move and hope that their acquiring of more military companies will bring them more success than ever before."

President Rothbard

Prime Minister blows his top at Sarzonian 'idiocy'

TIMIOCATO (PPA) -- Neutral and silent for the past few days, Prime Minister Timothy Ell finally let the heat out of the oven after what he calls the ill-timed and ill-presented comments of Sarzonian President Mike Sarzo and Deputy Senior Vice President / External Affairs Officer Grant Haffner. He released a statement saying today how shocked he was at the blatant insults thrown towards the Pacitalians by a man in such a position as Sgre Sarzo.

"Relations are not going to be fixed by levying low-blow insults at the Pacitalian people and government," Ell said. "I am deeply unimpressed by the poorly-chosen words of my colleague, and the fact that he is brazen enough to label us as apologists is absolutely absurd. Porantabano did the right thing by clarifying his remarks: he was trying to keep a minor situation minor, and the Sarzonians still chose to attack him for it. That is a clearly immature and counterproductive move."

Ell was livid over the comments of Mr Haffner as well. "For a nation that has never had diplomatic capital, especially after being ejected from the Union of World Powers for their own stubborn idiocy, that's a pretty untoward comment to make. To suggest that we've blown ours on just one nation is laughable. Grant Haffner is a man openly bent on keeping relations between Pacitalia and Sarzonia permanently damaged, and I treat that with the utmost scorn and disappointment. The ignorance of the Incorporated Government towards our honest intentions of restoring relations will no longer be tolerated. It is Sarzonia's responsibility to restore relations with us, and we are waiting for that day to come, however, with fools like Grant Haffner in the way, the restoration of relations will never come. The fact that my calls for neutral, diplomatic solutions to this economic dispute have been ignored and thrown in the mud by Mr Haffner only shows how truly uninterested the Sarzonian executive is in restoring relations. That is a true shame."

A source inside the Pacitalian government said President Sarzo "should be picking those he puts into powerful positions more carefully"; another added, "the Sarzonians are trying to hide their own self-shame by unsuccessfully patronising us and lowering themselves to insult us. If they're that paranoid about people sullying their reputations, they should stop taking the bait thrown at them. It's ridiculous."

Ell was asked about the comments of Azazian MoIT Arthur Birch, to which he replied: "Although I do not support the ideology of communism, it is good to know we have some support in this issue."

In addition, he commented on the talks between Hamptonian corporate giant WorldTech Industries (PAX800: WTI) and the former owners of Pomentane Ballistics. "I am in talks with Signore Franconi and Signore Brandutto Serra as to how we can get this accomplished without government involvement. With WTI involved, I'm confident a solely private-sector solution can be attained."

Finally, Ell summed up Pacitalian sentiments towards Sarzonia in simple sentences: "It's not hard for the international community to tell that it’s clearly not our fault we're not at the negotiating table. We're waiting for Sarzonia to make the move, being their responsibility. Sarzonians need to swallow their pride, realise that they are primarily responsible for the 'further injuries' to Pacitalian-Sarzonian relations, and also realise that, obviously, their 'initial efforts' are not sufficient enough. We are waiting."

Students at the National University of Timiocato generally agreed: "After Ell's comments, which were right on the mark, you can bet the Sarzonians will just make it worse by continuing to blow this out of proportion."

Phoenix Defense Expresses Interest

Canton (INN) -- Phoenix Defense Industries CEO March Rong Tzu stated that in the wake of the brawl of words between Pacitalia and Sarzonia, PDI might be interested in taking Pomentane Ballistics off the hands of Portland Iron Works. Said Tzu, "Phoenix Defense already supplies almost all of the small arms and cannons to the Imperium's armed forces and adding Pomentane Ballistics to our stable could add valuable technology and value to Phoenix Defense."

The comments come as a surprise to most, the Imperium's defense corporations has largely stayed out of the Sarzonian market and for PDI to all of the sudden show interest has sparked some concern. At 55% of the Imperium's defense market, PDI could concieveably gain on Arkangel'skie Voennye Sistemy (40% of market share) to an even greater extent. If this comes to pass, there could be rumblings of anti-trust investigations from the Progressive and Liberal corners of the Imperial Senate.

Tzu later expanded on his earlier comments by saying, "PDI is prepared to offer up to 300 billion Sarzonian Dollars if Portlan Iron Works is interested in dealing. While we realize that this is over three times its current market value, we want to make clear that the Pacitalians are going to have to bargain hard to get Pomentane Ballistics back into their hands."



[Sorry, I couldn't resist. Btw, March is a title derived from the German nobility during the Holy Roman Empire age. Nobles who carried such a title usually held land on the volatile border regions, called Marches, and their importance was such that they warranted a special title.]

NTIC removes trademarking and copyright reservance rights for PB

POMENIGIURA (PNN) -- The National Trade and Industry Commission, following the cessation of ties with Sarzonia today, officially ordered the removal of trademarks and copyrights for Pomentane Ballistics, meaning that the current form of the company no longer legally exists. Workers at PB picketed today in support of Pacitalian government officials who were standing up against what they call "Sarzonian economic imperialism". The NTIC also ordered the now ex-company to hand over all documents, personnel files, research & development information and other files.

Most likely, WTI head Sir Clyde Thurbourne and the two previous owners of Pomentane Ballistics, Angelo Franconi and Califoglio Brandutto Serra, will work on a deal to create a new Pomentane Ballistics, in which a mass majority, if not 100% of the workers from the old PB will jump ship to.

Sarzonian government takes over SNN

WOODSTOCK (ASP) -- Following the Pacitalian government's removal of trademarks and copyrights for Pomentane Ballistics, the Federal Commerce and Trade Committee announced they were undertaking the same measure against SNN and its holdings, including the Woodstock Daily Mail, thus closing the company as it stands.

Chairman Lyle Cheneyworth said the Sarzonian employees of the company told him they would refound the company "away from the shackles of Pacitalian control" and said the move by Pacitalia was "in extreme bad faith.

"From the looks of it, [Rear Admiral Barbara] Tucker [(ISN-Ret.), the managing director of the Portland Iron Works] was willing to sell Pomentane Ballistics back to the Pacitalian government at a considerable loss in light of the Phoenix Defense Industries' offer," $300 billion Sarzonian for the Pacitalian munitions company.

"Barbie Tucker was willing to sell it back unconditionally, which meant that Sarzonia wouldn't have access to the F-530 special operations assault rifle her people cherished," a source within the Incorporated Sarzonian Government said. "Yet, they chose to pull the rug out from under us. And this is an example of a country that prides itself on sound business sense and negotiating skill?"

Economists at Joe Gibbs University pointed to a gradual decline in exports and imports with the last recorded figures pointing at nine percent of all Pacitalian imports coming from Sarzonia, saying that "the signs were there all along. They've obviously chosen other sources of imports and exports. It's time we did the same."

UK Government Remains Silent as Row Escalates

Imperium (ANN) – With the economic row between Pacitalia and Sarzonian, the words of Minister of Trade and Industry Arthur Birch have only added fuel to the rapidly growing wildfire that threatens to consume the three nations.

With Prime Minister Alistair Tetley away from the capital, reports abound that chaos reigns within the Citadel, despite harsh criticism of such reports high-places sources within the Citadel. Nevertheless, ANN can report that Mr. Birch has been recalled from Breningrad to the capital to meet with the senior staff of the Prime Minister in an apparent attempt to provide a single diplomatic front.

Conservative Party leader Daniel Collins has blasted the Tetley administration in Parliament, calling the Prime Minister “incapable of running his own government,” going further to add that a no-confidence vote may be in order.

At his last public stop for the afternoon, the Prime Minister called for a quick and civil resolution to the dispute. Yet, with the Prime Minister on his return to Imperium, reports are coming from Pacitalia that Prime Minister Ell has recalled Pacitalian diplomats.

This leaves the United Kingdom in a tough spot, say political analysts. With the recent announcement by the Prime Minister that he is looking for a peaceful, diplomatic solution to the disagreements between the UK and Sarzonia, the escalation between the UK’s strong ally, Pacitalia, and Sarzonia may ultimately derail these talks if both the UK and Sarzonian foreign ministry come to exact blows over the developing situation.

Commerce Service Announces Blacklist Additions

New Copenhagen (INN) -- Today the Commerce and Trade Service announced a complete blacklisting of all Pacitalian Corporations and the removal of trademarks from Pacitalian goods in the Imperium. Such a move signifies the sanction, in efficio, of a trade war between Imperial Corporations and those of Pacitalia. While the move is not expected to significantly effect the Imperial economy, indeed total trade with Pacitalia amounted to no more than 0.001% of total imports, the strong action makes more of a political and psychological impact.

Sir Edward Black, Director of Commerce and Trade, explained, "The move by the Pacitalian government represents poor trade practices and childishness coupled with a disinclination towards fair economic competition. Even when they were given the chance to buy the company back free and clear, the Pacitalians chose the route that allowed them the best of both worlds. At no point was there any give and take often associated with trade."

An unnamed source noted a strong feeling of resentment toward the Pacitilians within Commerce and Trade. This stems from what many believe to be a simple fact; no Pacitalian or group of Pacitalian was willing or able to compete with the offer from Phoenix Defense and therefor they did the only thing they could to be assured of regaining the branch from Portland Iron Works. The fact that such tactics are illegal within the Imperium gives the Commerce and Trade Service the legal grounds for their retaliation.

HIFEX NEWS AGENCY: MYRLE, SCHULTARIA PRIME (16:34 SCT)


Available for international release...


Electors of the Federal Reserve and CHIMDEX Directors Hold Emergency Joint Session to Discuss Pacitalian, Sarzonian, Economic Affairs

Second Emergency Session in Five Days Focuses on International Capital Reserves in Midst of Impending Financial Disruption Between the Two Nations

While popular attention in all levels of government and society are still focused on the immediate agricultural disaster in the northern Central Plains region of Schultaria Prime, members of the Central Directorate's Finance Ministry, Schultarian Federal Reserve, and the CHIMDEX Stock Exchange met late Tuesday evening for several hours in the offices of Schultaria Prime's largest stock exchange. The meeting, while closed to the public and international media for the duration of its proceedings, was categorized as an "essential step in insuring Schultaria Prime's international economic interests in light of Political events in surrounding Portland Iron Works," according to CHIMDEX Director Qua'xoi Rogent in a live press release to Hifex reporters.

This gathering of leading economic officials, the second of its kind in less than one week, comes at a time when Schultaria Prime's economic futures are considered to be tenuous at best according to many leading economic indicators. Citing the need to reassess the Schultarian economy outside of rash or otherwise panicked decision making, the thirty member panel of economists, sociologists, business leaders, and Directorate bureaucrats, imposed a mandatory two week moratorium on all mass bid purchases and international trading under the auspices of the CHIMDEX and subsidiary Stock Exchanges nationwide. ”While our efforts have proven phenomenally successful in localizing the economic damage to just the immediate areas affected by the Central Plains fire, we’ve had serious concerns regarding our international economic status by a variety of government agencies,” replied Federal Reserve Chairwoman Dr. Jillian Wanfwy, ”Central to this concern are the current problems between Sarzonian and Pacitalian corporate interests.”

”It’s an unfortunate thing, given our recent internal crisis, that such an event between Sarsonia’s Portland [Iron Works] and the Pacitalians has transpired,” noted Rogent, citing that although economic trade between the two nations was certainly very small, its effects would ”hold long standing implications following the Schultarian Stock Market’s revival.” When asked for comment on how much Schultarian investment is currently tied up in foreign businesses in Sarzonia and Pacitalia, the gathering of officials denied official comment. However, in a typewritten response by Central Director Schultz to Hifex reporters, he included the following: ”While we can’t give any of you exact numbers today, let’s just say that including contracts with the Schultarian Defense Forces, strategic scientific partnerships, and various sundry private investments, there’s enough merlons invested in both of these nations to provide some significant impact on the merlon’s exchange rate both positively or negatively.”

According to sources within the Central Directorate, total trade between Schultaria Prime and Sarzonia stands at approximately 3.5%, or 309.88 billion Sm (560.89 billion USD), of all Schultarian export revenues while trade with Pacitalia currently resides at less than 2.195%, or 194.34 billion Sm (351.78 billion USD). Schultaria Prime’s Defensive Forces – Naval Division currently has one outstanding contract with Portland Iron Works rumored to be in excess of 2.75 Trillion dollars concerning the development of a new Superdreadnaught line to replace the venerable, but aging, four-ship Kerga Naskehdex Class. Details on these, and other critical economic statistics, are available for public view courtesy of the USSSP Federal Reserve located in Schultaria Prime, Schultaria Prime.

Ell notes Scandinavian 'trigger-happiness'

Prime Minister Timothy Ell lashed out at Scandavian legislation to economically sanction Pacitalia, calling a trigger-happy move.

"It's a shame that nobody seems to realise this is getting way too complicated for its own good," Ell said, pointing to the latest development from Pacitalia's OMP ally, Scandavian States. "We understand that nations may take sides - this was bound to happen. However, I have felt all along that this needs to be resolved diplomatically, not economically. That is not happening. Don't misunderstand me, I would love to see it happen. But there are many roadblocks both sides of the dispute need to address before such events occur. I am giving the world my word that I will lead the way in restoring at least cordial relations between Pacitalia and Sarzonia."

However, he noted that Scandinavian Commerce and Trade Service sanctions, though legal and 'understandable', have once again painted a black picture of Pacitalia that is unfair.

"Sir Clyde [head of Hamptonian WorldTech Industries] was going to Pomenigiura to work out a non-governmental deal to buy PB back legally," Ell said. "Now a different situation has arisen from the escalation of tensions, and this has caused quite a bit of misunderstanding from all involved parties."

WTI Still Looking

SEABURG (HBC) --- Despite the day's drastic turn of events, Sir Clyde remained in Pacitalia and was hopeful that WTI could expanded into two new foreign markets. "It was certainly a shock," the WTI CEO and Chairman said in reference to the Pacitalian and Sarzonian economic sanctions, "but WorldTech is in this for the long haul."

With the dissolution of the Sarzonian-owned incarnation of Pomentane Ballistics, WTI will now focus on reforming a new jointly owned Hamptonian-Pacitalian "rebirth" of the former arms company. Any such venture would be majority Pacitalian owned and run, however with WBI putting up most of the initial capital WTI will want to hold on to at least a sizeable portion of the new company.

The response to the punitive actions undertaken by both the Sarzonian and Pacitalian governments sent the Hamptonshire Merchantile Exchange (Hamptonshire's index of foreign owned companies) into a nose dive. Daniel Pederson, Commerce and Transport Minister, said shortly after the actions of the governments of Sarzonia, Pacitalia and Scandavian States that "These actions send a dangerous message to the international business community. Foreign investors will have to carefully examine this situation and they may find that they no longer will want to do business in some of those countries."

Back in Pacitalia, Sir Clyde has announced that he will leave Pomenigiura later today for a meeting with Prime Minister Ell in Timiocato. The agenda for the meeting hasn't been released by certain senior sources within WTI say that the meeting has to deal with a multi-trillion kroner deal that will be announced in relation to the current situation.

President Harsimran, "Foreign Leaders Acting Like Children!"
Yadi Accords Newspaper

Yadi, Capital of Space Union-

Following the burst of sanctions by the Pacitalian and Sarzonian governments and severing of diplomatic ties, President Harsimran has for the first time opened up about his opinion on the matter.

Early today, President Mann held a Press Conference in the Chita House. He remarked, "I find the current events being unleashed by the governments of Pacitalia, Sarzonia, Azazia, and Scandinavian States quite irresponsible, unnessessary, and childless. The leaders of these countries are acting like children!"

Following up on his comments and other sources pressuring him to take a stance Harsimran has released the following statement for the foreign leaders, "If you wish to act like 2 year olds then you may keep on bickering and you will find that we will not stand for it nor stay with it. If you wish to act like Gentlemen and have a spine of some sort, we welcome you to Yadi for a conference to discuss the matter and even the more general relations between the country. If you do not take a course of action to help your country, then I will have to question the true wisdom of your leaders and if they are truely qualified to run such great nations!" The President has repeated although his words are harsh, he wants the best for both countries. If both nation's agree to President Mann's proposal for a conference, the leaders of both nation would be housed in the Chita House while their visit and would have the Presidential Room all to themselves.

Meanwhile, in the Parliment of Space Union, Foreign Minister Harman Sidhu has released the following statement after Harsimran, "Any nation's that wish to take advantage of the situations are noneless than cowards in a barrel. Space Union does not tolerate the actions that some nation's are taking to get involved and disrupt the already agile condition of the matter." The Foreign Minister was not open for comments afterwards.

In the mean time, polls have showed that the status of both Pacitalia and Sarzonia have plummetted in the eyes of Space Union citizens. Current polls show that only 54% of pollers said that they think Sarzonia was following the right policy, while 62% said that they wish to remain allies with the nation of Sarzonia. This was down from 78% and 89%, respectively, a month earlier. Pacitalia has fared no better. Current polls say that only 48% of Space Union citizens say that they think Pacitalia is following the right policy, down from 87%, and only 57% say that Space Union should remain an ally of Pacitalia, down from 86% a month earlier.

While polls plummet, stocks of PIW and other Sarzonian companies have collapsed totally in the Union Stock Index (USI), as foreign investors loss their faith with Sarzonia and Pacitalia. Meanwhile, Space Union investments in Sarzonia and Pacitalia have hit a record low as patients shrink and confidence dries up with the news of ongoing disputes. This comes as the Economic Minister, Yerisah Conmas, has said, "Because of ongoing bitterness, Space Union has warned of a possible loss of Space Union's economic confidence in both countries." This has triggered anaylists to predict that the trade deficit with both countries will collapse into a giganitic trade surplus in the near future with short-term economic impact on Space Union as buyers will shift to homemade products instead of foreign products or even other nation's products.

From the Daurmont Times-Chronicle

Government expresses shock, dismay
Edward Nickelby

Daurmont, ISSELMERE (NPA) - Sir George Fredericks spoke for the Government when he commented on the rapid disintegration of diplomatic relations between the Pacitalian Republic and Sarzonia.

"His Majesty's Government is alarmed that the amalgamation of Sarzonian owned industries would cause such consternation internationally," Sir George stated. "The government is similarly concerned that these matters will lead to a decline in Hamptonian-Sarzonian relations as well."

Sir George refused to indicate what the government might do should diplomacy fail completely. "Only time will tell."

From: Trouw - a centrist Knootian newspaper.

Pro-Pacitalian Daatman calls for calm in economic row

THE HAGUE – in a joint press conference, Prime Minister Jan Willem Daatman and State-Secretary of Foreign Economic Policy David Davinci urged for calmness and diplomacy to prevail in the recent row between the Pacitalian and Sarzonain governments over a corporate dispute.

Davinci emphasised that the DDR shares Pacitalian alarm at the closed nature of the amalgamation of Sarzonian owned industries, also condemning the 'trigger-happy' response of the Scandavians as ‘a dangerous exaggeration’. Daatman called upon the involved parties to re-evaluate any retaliatory actions before committing themselves to ‘an antagonistic dialogue of escalation’. Daatman suggested that he could visit Pacitalia for an official visit to his counterpart, Prime Minister Timothy Ell, to “build upon good relations and deepen economic ties, while working to promote international stability”, emphasising a “shared commitment to Free Trade and Liberty at home and abroad.”

Pacitalia and Knootoss enjoy historically close relations, including deep economic ties. Several important Multinational Corporations, such as Pink Bunny Cola, are based in both nations and other corporations are of cross-national origin. National sentiments run with the Pacitalians, and the State-Secretariat of Foreign Economic Policy is under tough pressure from Conservatives, Liberals and MNCs to take a stronger stance in favour of the Capitalist Republic. Minister Femke Vologdov (Green) of the Foreign Affairs Ministry emphasised however that this was “not primarily a Knootian dispute”.

The following morning's Daily Dispatch (http://kfox.gamehorizons.net/Daily%20Dispatch%20Nov%203.pdf), distributed within Imperium, the capital of the UK.

From: Sir George Fredericks, Minister for Foreign Affairs and International Development, UKIN

An End to Foreign Involvement

Lords, ladies, and gentlemen, please bear with me,

His Majesty's Government formally requests all nations not immediately involved in this dispute, namely Sarzonia and Pacitalia, or with an advocated interest in resolving this dispute amicably, to desist in publishing inflammatory denunciations of one side or the other. It would be for the best of all nations not to fertilise the seeds of discord further.

Sincerely,

The Hon. Sir George Fredericks, KL, MP, CS, PC
Minister for Foreign Affairs and International Development
United Kingdom of Isselmere-Nieland

RE: Pac-Sarz Sit.

It's the best policy to use this as an area in which to shore up relations with both nations. Since the deal cannot seriously hurt either nation economically, the doors are wide open for any number of actions: purchase from PIW, adaption of deal with Pomentane, etc...

In reality, the best idea is to sit back and wait. As the situation either expands in scope or detracts, it will be the opportunity to swoop in and build the economic links previously discussed, with one or either...


"...WE question totally the veracity of the documents shown by the Scribner. They have been proven to have misinterpreted documents released in the past and stooping so low as to fabricate documents entirely would not be a stretch of the imagination. Indeed, look at the dwindling circulation! That document is a total fabrication and merely a publicity tactic for a paper on its last legs..."

Official Samtonian Statement
We urge both sides to settle their dispute in an amicable and legal way. Due to Samtonia's history with both nations, no Samtonian sanctions or support will be resulting for either side in the dispute. We also echo the sentiments of our colleagues in Isselmere. This is both a private matter between OMP members and a highly divisve issue. Publishing denunciations of either side before being allowed to see the entire range of documents and hear both sides of the story is nothing less than journalistic sin.

Samtonian Council of Thirteen


We suggest that the entire situation be stepped back upon and cooler heads be allowed to prevail in your Commerce and Trade Service. We do remind you that this is a matter which is the point of contention between two member nations of the OMP- ergo, it shall be solved in that same group. It is a regret that your aquisition of PBW did not work out, however this issue is now firmly beyond your control and we strongly urge you, as a former ally in a number of organizations, to drop the matter and let it be solved by consensus of the two nations involved.

We strongly suggest you rescind earlier punitive settlements levied aganst Pacitalia, which are tantamount to economic warfare upon Pacitalia and would provide ample opportunity for Pacitalia to respond in kind against you and be fully within the right.

Communication is requested in this matter.

Dept. Minister Rosenzweig, Ministry of Economics
Dept. Minister Appelbaum, Ministry of Justice (Intl. Law)
Samtonian Council of Thirteen

..::Class 1 Diplomatic Message, Encrypted (1024kb)::..
TO: Dept. Minister Rosenzweig, Dept. Minister Appelbaum
FR: Duchess Asiya Saleh, Director of Foreign Affairs
SUB: RE: Cooler Heads

The decision by the Trade and Commerce Service was not unilateral but one thought through during a strategy board between the various Directors of Service on the subject. The meeting was attended, and the strategy decided upon was approved, by Her Imperial Majesty Lien I Larsen. The fact is that according to Imperial law the Pacitalian government engaged in illegal trade practices; specifically theft of intellectual and actual property, violating contractual obligations, impeding negotiations through means other than legal acquisition, and a strong case could probably be made for violating Guild Law. This policy is written in stone until such time as the Empress no longer wishes it to be such, which will probably be never unless Pacitalia reviews and corrects its business practices.

As for the punishment; it isn't tantamount to economic warfare, [i]it is. We will not do business with the Pacitalian government and we will encourage the Imperium's corporations to use whatever legal means necessary to make life difficult for their Pacitalian counterparts. Also, this acquisition was not a government one, but it was attempted by a private corporation within the Imperium. And if we were to rescind this decision, the laws that cover trade practices within the Imperium wouldn't be worth the paper they're written on.

As for your assertion that Pacitalia would respond in kind, I honestly don't know what the purpose would be. At this point in time, it is already illegal for any Imperial corporation or government entity to conduct trade or enter into contract with any entity within Pacitalia, private or public.
..::End Class 1 Message, End Encryption::..

[OOC- See, I didn't know that you weren't in the OMP any longer. I'll edit my post a bit, and if you could do the same that'd be peachy.]

[I don't belong to any mutual defense pacts, not even NATO. But yeah, I'll go ahead and do that.]