NationStates Jolt Archive

[OOC: Note, this RP is mostly closed. If you want in, please TG me with your interest and your proposed role and I'll let you know.]

With President Mike Sarzo and First Partner Jay Tyler flying to Baltimore-Washington International Airport to visit the country that Sarzo once called home, Lieutenant President Nicole Lewis was wrapping up a Cabinet meeting where mostly routine matters had been discussed. She was ready to go home to examine her son Jaden's report card and get the house in shape for her parents to visit.

Before she could shut the door to her office in the Executive Office Building, she heard a loud rap that could only mean one person. Janis. Specifically, the Vice President for Business and Commerce, Janis Hedge. She was known for a number of traits, chief among them a workaholic's reputation that rivalled Sarzo's -- and a not so gentle way with knocking on a door.

"Yes, Janis?" Lewis hoped her impatient tone would get the point across to Hedge that she wanted to be out of the office yesterday.

"Did you see this report about the Manston Naval Works?"

"What about it?"

"Namely, Portland Iron Works' bid for Manston?"

"What about it? Wasn't it like $8 billion?"

"Try $975 billion."

"What?" Lewis's eyes widened at the report and she looked at the report. Her background as a financial analyst made her stare at the numbers and the bid history.

"How did that company go from a $4 billion value to $975 billion," Lewis asked.

"That's a question you're going to have to ask Barbie Tucker."

I intend to Lewis thought. I fully intend to. She grabbed a piece of paper and began scribbling down notes as she hurriedly made her way to the Gray House Press Room. She walked in as Vice President for Health and Athletics Jimmy Marshall was completing his press briefing.

"Madame Lieutenant President!"

"Sorry to interrupt."

"Don't worry, we're done," Marshall drawled, smiling slightly as he watched Lewis surge toward the podium.

"As most of you know," Lewis said, not bothering to wait for niceties or banter. "The Portland Iron Works placed an enormous bid for the Manston Naval Works. Economic figures pinned the foreign company's value at $4 billion, yet the Portland Iron Works bid close to one trillion dollars.

"Obviously, something is seriously wrong with this. Unless someone discovered enough carbon nanotubes in that company's assets to make that the base armour for our next-gen main battle tanks, that company is not worth sinking nearly $1 trillion into, especially since the company is announcing they are freezing foreign assets in 'low intensity' production facilities. That's a band aid measure and we need to fix the problem before there's some amputation going on here."

It was the start of Prime Minister Timothy Ell's last days in office as he prepared to hand over power to his successor, the victor in the elections on 25th January. He had been a little concerned as of late - foreign companies, even Pacitalian companies, had been sinking huge amounts of raw currency into Space Union holdings through bids that, in some cases, reached 50,000% the original market value of the company.

He was poring over the latest news, including Guffingford's massive bid to counter the outrageous Sarzonian bids for the naval works, though Sarzonia had also bid a similar overdraw for a uranium mining corporation. All this money would have spelled the end of the Sarzonian economy if the bids had been successful, but thankfully, Sarzonia's bid for the naval works had been withdrawn, so the blow would be softened considerably. Still, Sarzonia's bids would be scaring off investors, left, right and centre, and a lot of the capital proposed to be invested would be lost anyway. The beginning stages of a recession in Sarzonia were becoming more and more apparent, whether the world liked it or not. It wasn't going to just be up to Sarzonia to fix this problem. There were a lot of economies that would need to close off and then help Sarzonia recover.

But the ship was sinking, and fast.

Earlier in the day, the Pacitalian Trade and Industry Commission (a source of ire for many Sarzonians) had downgraded the national credit rating of Sarzonia from 8.0 to 7.0, and pegged the douro at a safety rate of 1 : US$2.15 and 1 : SZ$1.33. The National Bank of Pacitalia had purchased millions of doura back from foreign reserves to help stabilise the doura against any possible future economic negativity. Some Pacitalian companies had begun selling off their interests in Sarzonian companies, but most were ready to stick around and wait and see how things went. After all, it would be out of character for Pacitalians not to help the Sarzonians out - they were still friends, despite the diplomatic bitching of the past few months.

Luckily, Sarzonia had smart people running the administration. Unluckily, the same apparently could not be said for PIW, and the world was about to find out why such outrageous bids had been made and permitted. Somebody, or something, was about to take the fall. In a big way.

Admiral Barbara Tucker just turned off Interstate 26 at the exit marked for the Portland Iron Works. Her satellite radio was shut off because she viewed it as a distraction, though she would have known about the backup on Sambuco Blvd. had the all news station been on.

The only thing she was thinking about was getting in and meeting with the production managers at the Incorporated Ordnance Company. The bunker buster munitions she'd ordered fast-tracked were anything but as other projects seemed to take centre stage over a project she personally wanted to see brought to fruition. When she finally pulled into her parking space, she grabbed her briefcase and glanced in the rear view mirror.

Looks like I've got to freshen up she thought as a "laugh line" began to make its presence known along her eyes. She knew she had more foundation than she could ever want covering the bags under her eyes. She knew the one way to cure that would be sleep, which seemed to be a rarer commodity in Tucker's life than petroleum was in Sarzonia these days. As the elevator opened and she began to walk into the giant suite that led to her private office, she saw her receptionist and secretary with frazzled looks on their normally fresh and eager faces.

Something's not right here, Tucker thought. She knew there was bidding going on for the Manston Naval Yards, but she was always under the impression that PIW would go no higher than perhaps $20 billion in an investment and benefits package with $10 billion devoted to the purchase of the space itself. She was in for a rude shock, but she didn't know how rude it would be until her secretary pushed a button on the phone and hung up the receiver.

"Admiral Tucker," her secretary said sharply. Tucker looked up with a perturbed expression. Gladys never called her Admiral Tucker. It was always Barbie. If she needed to show some shred of formality, she'd sometimes say Barbara. Gladys would even get away with Tucker or Tuck from time to time. But Admiral Tucker?

"Gladys, in the 34 years we've known each other, you've never addressed me by rank, and certainly not with that formality. Something's clearly wrong. What is it?"

"You know the bidding for the Manston Naval Works," Gladys asked. Tucker's brow furrowed in concentration, surprised that Gladys was mentioning the bidding and was sounding so hostile.

"What about it Gladys?"

"Are you aware that we bid $975 billion dollars for that company?"

"We did what?"

"I've got reporters from SNN, the Woodstock Daily Mail, the Portland Press-Herald, and the Associated Sarzonian Press all calling me looking for you, Admiral. They want to know why you allowed irresponsible bidding to take place and what you are going to do about it."

"But I never authorised $975 billion bidding!"

"I know that Admiral and you know that. But they don't. And they don't give a flying fuck." Tucker's eyes widened at the sudden use of profanity by her longtime secretary. Even though the two women occasionally went out to grab a drink after work and Grace would drop her office decorum and cuss like a sailor, the secretary never said a word stronger than "crap" when she was on the clock and in the office. "As far as they're concerned, you're the CEO and it's your responsibility."

"What are you telling them?"

"I've told them we'll have a comment for the record when you're ready to give one," Gladys said. "I've literally taken a full eight hour day's worth of calls and I've only been in the office for an hour."

"Is that working?"

"No," Glady said, exasperated. "The five outlets I've mentioned are just the tip of the iceberg. They're the ones who've all called at least twice. And those are just the domestic outlets. We've even had people from The Economist on the line."

"Well that's just fucking great," Tucker said. She rarely cussed, a surprise given her status in the Sarzonian admiralty, but this right now, her mental censor was on bank holiday. "How long can we keep blowing them off."

As if to answer her question, the phone rang despite the secretary's hitting the hold button. Both women looked down at the line indicator and at each other. It was Tucker's private line.

"Admiral Tucker's office." Gladys looked up with a glare that suggested she was ready to accuse Tucker of bloody murder.

"Admiral, it's the Lieutenant President." Tucker closed her eyes and sighed. She slowly reached for the telephone and took a long, slow breath, trying to train a few seconds more time to steel her courage to the sticking place.

"Barbara Tucker."

"And we're live in 5, 4, 3, 2..."

Lisa Bridger plastered on her best on air smile but she knew this story was going to be the biggest she'd reported in her nine years on air. She also knew her business degree wasn't much help to her this time. The numbers were just too staggering.

"Good evening everyone, and welcome to tonight's broadcast. Our top story tonight is the growing scandal involving the Portland Iron Works and their aggressive bid for Manston Naval Works. A move some would say is too aggressive. We go live to Rob Turner in Woodstock with the latest news from the Gray House. Rob?"

"Thanks Lisa. The Gray House has been surprisingly quiet about this whole situation, but Lieutenant President Nicole Lewis spoke out about the situation."

**Cut to Lewis**

"Earlier today, I called the Special Prosecutor's office to begin a full investigation into the conduct of the Portland Iron Works. Their conduct has brought dishonour to their reputation and has called into question government policies with respect to corporate law in general and the Portland Iron Works in particular."

**Cut to Turner**

"The special prosecutor's office has announced a trial will begin, in his words, 'as soon as is practicable.' He said that would be as soon as he's able to personally deliver a subponea to Admiral Tucker. Reporting live from Woodstock, I'm Rob Turner."

**Cut to Cynthia West in Portland**

"Here at the Portland Iron Works, the situation can only be described as sheer chaos."

**Cuts to scene of normal hallway behaviour**

"The Portland Iron Works offices are usually bustling with activity as development plans and production contracts regularly move from department to department."

**Cuts to scene of bedlam in the office**

"But today, the activity in these offices was panicked."

**Cuts to PR person putting his head in his hands**

"The Portland Iron Works hasn't announced employee layoffs, but a source high in the company's decision making chain said that wasn't far off. The investigation has turned a normally chatty company CEO, Admiral Barbara Tucker into a sombre, withdrawn woman.

"It's clear the effects of this investigation will have an effect on Portland Iron Works. The only question is what. Reporting live from Portland, I'm Cynthia West, SNN News. Back to you in the studio."

"Thanks Cynthia. The investigation is expected to start within two weeks and the Woodstock Daily Mail has filed a Federal Open Records Act request to access the company's financial statements and meeting minutes relating to the bids that went haywire. We'll have more on this developing story as it unfolds. We'll be back after this."

"And we're off air."

"Holy shit," Bridger said. That only began to tell the story.

Chris Carroll woke up that morning and stifled a yawn as he shuffled off to the shower. His job as a stockbroker wasn't the most exciting in the world, though he made more than enough with his commissions to put his daughter through university. That is, if university weren't already free thanks in large part to generous donations by the government.

He stared into his reflection on the Portland Metro as he adjusted his tie. He hated the long commute from home and was looking forward to the day his automobile finally left the shop and he was ready to start driving to work again.

Carroll had no inkling today was going to be any different from any other day. He made his usual plans to meet his friends at the local bar after work and wait until his wife got out of her job as a school teacher since tonight was PTA meeting night. He figured he'd kick back with a few Blue Fox Ales and watch the World Cup match and unwind after another steady day.

That was until the opening bell rang.

"Sell! Sell! Sell!"

All of a sudden, the day was a bustle of activity and screaming and Carroll running around as if he were actually playing football instead of planning to watch the match after work. Today was one of the busiest days in many months for Carroll, and it was looking like an endless stream of panicked customers trying desperately to sell their shares of stock. Especially the one stock that seemed to be the exchange's rock of Gibraltar: The Portland Iron Works.

Things got so busy for Carroll, in fact, that he didn't even have time to eat his lunch. It didn't matter. As soon as the bell rang at four o'clock, he'd probably have ended up losing it anyway. With the constant activity and with Carroll growing more and more tired by the minute as four o'clock sped on its way, the ending bell's normally shrieking monotone became blissful relief.

It was short lived.

"We're live from the Portland Stock Exchange after the exchange took its biggest one day decline in history. Stocks dropped 11,487 points to close at 59,432, a drop of 16.2 percent of its value on a day analysts are quickly calling Black Monday."

That report came from reporter Clayton Benson of Channel 6 News, but it could have been anyone. The important thing was that the stock market experienced a crash the likes of which hadn't been seen in Sarzonia. Ever.

As for Carroll, he was finally able to eat his lunch. At two o'clock in the morning. After he called in sick the next morning. For most people, Black Monday was the day the stock market took a nosedive. For Chris Carroll, his calling in sick might as well have been a symbol of the nation's economic health.

Minister of Commerce Theodore Brumby packed the papers into the envelope and placed it in his briefcase. It was time to go home. He had managed to get everything important to his Ministry’s daily operations finished soon enough that he might actually make it home in time to get a decent night’s rest. Maybe he could…

His phone rang. He made no attempt to stop the loud sigh that came. He should’ve known it was too good to be true.

He picked up the phone.

“Brumby here,” he said.

“Ted,” said the voice of Minister of Foreign Affairs Jamie Bladen. “This is Bladen. There is urgent business to see to. You, Minister Plantz and I are needed at the Capital Building to meet with the Regent."

Brumby sighed once more.

“I’ll be there in two hours,” he said.

“Good enough,” Bladen replied. “I’ll tell you more when you arrive. Goodbye.”

Brumby hung up the phone without a word. He stood in silence a moment and then called in his secretary.

“Eloise,” he said when she entered the office. “Minister Bladen just called. It seems like a little emergency has cropped up, and I am needed."

“Do you want me to brew some strong coffee while you’re gone?” she inquired seriously.

“I suppose you should,” Brumby replied. “I’ll probably be here a while once this meeting is finished. Be ready to do some serious work once I get back.”

OOC: I told you I'd post in here. I'll post more soon, provided the whole thing doesn't die.

~ Romandeos.

The Parliamentarian
(Page 1 - Sarzonia Spirals Downwards - Recession on the Horizon?)

The financial world was shaken yesterday as the Sarzonian stock exchange lost 16.2% of its value in a single day, as investors panic-sold shares in the Portland Iron Works. The fiasco was allegedly caused by the questioning by prominent Sarzonian financial figures of bids for Space Union companies described by the CPI as 'ludicrous, bizarre and absurd' and the company's financial competence as a whole.

Praetonian markets took a hit yesterday too, with the Imperial Central Index list of 100 top shares (ICI100) dropping 3.2% with companies heavily involved in Sarzonia taking the sharpest drops. A CPI spokesman speaking earlier today said that the Praetonian markets 'have weathered this storm relatively well - a major financial centre losing such a massive chunk of its value is big news, but thankfully our economy is not so uni-centric as the Sarzonian economy appears to be, and only companies with extensive dealings with Sarzonia took a significant hit.'

The CPI was not, however, happy that the Sarzonian crash had happened at all, claiming that it was 'ineptly handled and completely unnecessary'. The CPI spokesman stated that the Portland Iron Works had not actually paid out any money, its finances were not in jeapordy and that 'a simple call for calm from both the Portland Iron Works and the Incorporated Sarzonian Government could have averted this whole thing.'.

Regardless of how the situation came about, many in Sarzonia now fear a recession is on the horizon, with many Sarzonian investment companies taking massive and probably irrecoverable losses. A chain reaction of falling share prices, reduced investment, reduced profit and yet more fall in share prices could 'cascade catastrophically across the entire Sarzonian financial landscape' warned the CPI spokesman.

Many businesses are seeing this as a good time to invest in Sarzonia, however, with solid companies like the Portland Iron Works receiving strong investment. Weaker companies, however, are being left out in the cold with Praetonian investors wary of losing their investment if they fold. 'The Portland Ironworks is essentially backed by the Sarzonian Government,' said the manager of ICI100 listed investment firm, Docklands Investment & Bonds, '- it is economically, politically and strategically unthinkable for a Sarzonian government to allow the PIW to cease trading or even substantially downsize. Many of these other companies, however, could well be allowed to fail if the economic situation becomes bad enough.'

In addition to business concerns, many in Sarzonia fear that the quest for economic recovery will lead the government to cut taxes and with them Sarzonia's extensive and extremely generous benefits system. 'It may be hard for a Praetonian to comprehend, with what taxes there are primarily in place to fund the police, military and elections, but Sarzonians are used to extensive state help, and many of them may be unprepared for cut-backs if the Sarzonian Government is forced to lower taxes,' said a social analyst when interviewed. For people in all walks of life, Sarzonia's recent economic decline is on everybody's mind and many are fearful of the future.

Woodstock Daily Mail

'Black Monday' impact still being felt
by Jennifer Halloran
Daily Mail Staff Writer

Portland -- The bleak financial picture for the Portland Iron Works took another turn for the worse today when the company announced it was laying off 15,000 white collar workers at its two shipyards in Acastia. An additional 7,500 workers in Portsmouth have been furloughed for one month without pay and 10,000 employees in North Portland have had their benefits cut back.

"We undertake these measures with regret," said company chief executive officer Barbara Tucker, a former admiral in the Incorporated Sarzonian Navy. "We are examining every aspect of our operational structure and are striving to ensure the full recovery of the Portland Iron Works as a worldwide standard bearer."

Despite the sound of optimism, the Portland Stock Exchange suffered a 600 point drop in trading yesterday. Though yesterday's drop was less than one percent, the damage caused by Black Monday's crash has yet to be contained. The layoffs follow 10,000 layoffs by PIW's Avalon Aerospace Corporation subsidiary and a reduction in the company's research and development budget.

"We're still looking to provide new and better products for our customers," Tucker said in a press release by the company. "But we are tightening our belt to ensure that we are in compliance with government regulations."

Such posturing by the company wasn't necessary just a few short weeks ago. The company's influence in the Incorporated Sarzonian Government was unrivaled by any Sarzonian company, and the company was arguably among the most influential of any company in the world. However, the stock market crash and layoffs suggest something else entirely.

Senator Brian Delgado (Conservative-Cooke) has just proposed a bill, the Corporate Accountability Act, that would require all companies to report prospective bids to the ISG and require all companies over 25,000 employees to pay taxes on their profits. However, a source close to Delgado said, "it's plainly obvious who the target of this bill is. Portland Iron Works.

"Every other company in Sarzonia is subject to governmental regulation and PIW has been given a free hand to operate however they choose. It's a recipe for corruption and Senator Delgado is trying to stop the bleeding."

"Delgado's overreacting," said Senator Courtney Forbes (Progressive-New Isselmere). "All of this could have been stopped dead in its tracks if someone from PIW or the ISG had just appealed for calm. And we need to examine why the Portland Stock Exchange was allowed to keep hemorrhaging value. Once the market lost five percent of its value, it should have automatically shut down. That's what happens in other countries."

An investigation into the Portland Stock Exchange's automated software controls is underway. According to a source within the Exchange's office staff, the software "should have kicked in. I don't know why it didn't." Speculation has centred on the possibility that the software was down for its usual maintenance cycle.

"That's possible. According to the schedule, though, it should have finished its maintenance the previous Thursday night."

Delgado's bill also includes an effort to cut taxes and eliminate the top 10 percent of the Old Age Pension programme, for citizens over the age of 70 who earn more than $100,000 annually. Other options include increasing the retirement age to 75 years and ending unemployment insurance benefits after six months instead of the one year period previously approved by Parliament.

The only thing that's certain about the effects of Black Monday is that there will be change.

"You will see a very different economic picture in Sarzonia," Delgado said. "One way or another, something is going to have to change."

From La Repubblica Oggia

http://www.ilo.org/public/italian/region/eurpro/rome/newsletr/romenews_0306/images/maroni.jpg
Pacitalian Trade & Industry Commission (PTIC) president
Francesco Porantabano says, like the Praetonian economy,
damage on the Pacitalian markets was, luckily, minimal after the
Portland Stock Exchange dropped 16% of its value on what
the Sarzonians are calling 'Black Monday'.

Porantabano: Damage minimal, but "we must be vigilant"


by Alessandro Spinodore, Mandragora

Pacitalia's top government economist says, after close and vigilant watch of the Pacitalian investment community this past week, damage to the Pacitalian economy has proved minimal after "Black Monday" decimated the largest stock exchange in Sarzonia. The crash sent both domestic and international investors with involvement in Sarzonian companies into a panicked frenzy.

"Like Praetonia, our economy is the anathema of a unicentric industrial base," PTIC president Francesco Porantabano said Thursday. "This was the primary catalyst in the collapse of the Sarzonian stock exchange on Monday - too much capital and resources invested in one company and one industry, and it just happened to be the one that fell under the guillotine."

He warned it would only be too easy for Sarzonia to fall into recession, saying "the catalysts are all there, waiting to negatively impact the attempt at recovery", but says all countries need to be vigilant in watching their markets. Porantabano added: "The states involved must take this one step at a time - there must be absolutely no rushing to sell out. There is no doubt and no question that most of PIW's interests will change hands or end up dead weight, but the blow would be lessened if investors showed the rest of the financial community they were even minimally confident in an emergent recovery scenario."

Porantabano says Tuesday's 1,45% drop on the PAX800 Mandragora Stock Exchange was only partly because of the previous day's Sarzonian market crash. He said "heavy investigation of the Tuesday drop concluded that most of it was due to premature negative reaction" to the Pacitalian government's expected Economic Assistance Recommendation Platform for neighbour Amarenthe. The Pacitalian International Development Commission will release the report Monday.

Mr Porantabano admitted "[the PAX800] would have shut down for the day had Pacitalia and Sarzonia still had import/export of previous years, but now that total exports and imports are down around 9-10%, and since we lowered the Sarzonian corporate credit rating from eight points to seven, making investors a little more cautious, the blow has been lessened significantly."

Praetonian markets saw a 3,20% drop in trading the immediate day after Black Monday, a scratch on the armour compared to the Sarzonian trading massacre. Speculation is still rampant about how the Portland Stock Exchange allowed a sixteen percent drop in one day of trading. The PAX800 immediately shuts down trading after a one-day drop of four percent, a similar system in place in other markets and one that was supposed to be set up on the Portland Stock Exchange. PSE officials blamed Monday's ultradrop on faulty computer software that would have automatically shut trading down past a five percent loss.

Sarzonian government figures, especially those of the country's Progressive Party, are complaining the entire economic mess could have been avoided had the companies of Sarzonia bidding for Space Unionist corporate selloffs urged calm in the bidding process. Instead, PIW continued to bid outrageous amounts for companies worth substantially less, until the last offer, when Space Union officials suspended bidding. But Porantabano says that is not so.

"Portland Iron Works was not just in it to invest capital and gain assets," he said. "The magnanimity of the bids is a very realistic display of how Portland Iron Works has thrown its weight around so much that their overconfidence in international markets has now thrown them down a dead-end road with the only exit now shut off."

Porantabano, who has been head of the PTIC since 1988, has seen all types of what he calls "egobidding".

"Every country has at least one company that does it," Porantabano added. "When a rival corporate group counters with a higher bid but is not as well known or does not carry the same prestige, the first company sees it as a challenge to its reputation and feels forced to bid higher. Most companies like this would see being outbid in a competition over a for-sale interest a total embarrassment."

Lewis didn't wait a beat to launch into her tirade.

"Admiral Tucker, you have a hell of a lot of explaining to do. What did you do, decide you were going to turn into Kenneth Lay?"

Tucker took a deep breath, trying hard to disspiate the sudden anger she was now feeling toward the Lieutenant President. Even though she personally wasn't involved in the irresponsible bidding which forced Space Union to suspend the auction, she was the CEO of the company and as such, it was her responsibility.

However, Lewis didn't wait for Tucker to begin explaining herself.

"You bid nearly $1 trillion for a company that wasn't worth even five percent of what you bid. Money doesn't grow on trees, you know. If you've got $1 trillion stashed away that you can just throw around like a pillow at a slumber party, there's something wrong with your accounting practices."

Still trying to keep from snapping, Tucker replied before Lewis could get in another biting remark.

"With all due respect, Lieutenant President Lewis, we are beginning our investigation of what exactly happened and how the bidding got so far out of control."

"I don't think you need to be a rocket scientist to figure that out," Lewis interjected. "You got an ego trip when Marinoceta began bidding and you couldn't stand to be outbid by a company you by alli rights could buy out without a blink. Never mind what that would do to Paci-Sarzonian relations if that slimeball Porantabano opens his yap again."

"Nicole," Tucker snapped. "If you don't have something constructive to say, don't say anything."

"All right," Lewis said. "I'm going to request that President Sarzo place the Portland Iron Works under receivership." Lewis's next sentence was interrupted for a brief moment by the sound of Tucker gasping. "And unless you start coming forward with some real news about what's going on over there, I'm going after your job missy."

Tucker hung up angrily, but instead of finding the nearest wall to pulverise, she sank down to the floor and sobbed like she hadn't done since her plebe days at the Naval University. While it was anyone's guess what the outcome of the Portland Iron Works going under receivership would be, the fact that a company that heretofore had operated under a far more lenient rule set than any other company in Sarzonia would now be controlled by the government until its structure was exhaustively reevaluated was enough to shake anyone.

The drastic move had only happened once, during World Cup qualifying when the Incorporated Football Federation, Sarzonia's governing body for associaiton football, tried to fire national team coach Barry Owens for refusing to support its attempt to withdraw the team from the World Cup. That shakeup resulted in legendary coach Dave Wilson returning to the fold as both IFF chairman and national team coach and the disbanding of the IFF's Board of Governors.

The only thing that was certain about the Portland Iron Works' future is that now everything was uncertain.

From Hoogenbosch Finansieel...
HOT OFF THE PRESSES:

ESTABLISHED NON-GUFFINGFORDIAN FINANCER ANNOUNCES HOSTILE TAKE OVER BID FOR PORTLAND IRON WORKS

A JJ&J Co. Ltd. representative responds: "We have, after discussing this issue of utmost importance with the senior executives Mr. John Law, Mr. Jay Gould and Mr. James Fisk and all of our shareholders to bring about a substantial bid for the Sarzonian naval company Portland Iron Works, an amount of X Sarzonian Dollars [whereas X represents the current share value of PIW] and added a $1250.- to each share, to compensate the loss of value over the past days. We bid for 67.5% of all circulating PIW shares, making this our first official take over bid."

IA Administrative District, Today -- JJ&J, a most respected member of the IA Banking Association and starter of many joint venture with various other banks of the Imperial Armies region, JJ&J announced bid on the most unpleasant time for PIW and Sarzonia as well, as the nation slides down into a real recession. When we asked JJ&J to comment, they said that this is the time to invest, and to look onwards, forwards and upwards in the global economy. "If we cannot invest in the future" the spokesperson said, "we might as well pack our bags and go home."

While JJ&J is not very certain about the political ending of this bid, JJ&J is willing to 'check the water's temperature', before leaping in. Noting the representative making this statement said that this is the first bid, we can only assume more will follow - should shareholders decide to decline this most generous offer. The Sarzonian parliament can always block this offer a stock analyst of Hoogenbosch Finansieel assured me this morning, but since Sarzonia rejects doing business with the National Socialist regime of Guffingford - while JJ&J is a multi-national company with only a handful of offices within Guffingford - and having no political affiliation with said blacklisted nation.

Moreover, JJ&J holds an extremely strong position in national banking affairs, after presenting the Q4 statistics and company overview of 2005. All national loans were repaid in due time with interest, completely fulfilling the predictions made by senior executive Mr. John Law. JJ&J Has proved to be a very efficient and reliable financer of large inter-IA government projects, as well as a major money lender to smaller and poorer nations globally. We will keep you updated on this story.

Woodstock Daily Mail

Sarzo: PIW placed under receivership
Government, PIW reject hostile takeover bid

PORTLAND (7 February) -- The future of Sarzonia's dominant company became more uncertain when President Mike Sarzo electronically submitted his signature announcing that the scandal-wracked Portland Iron Works arms manufacturing company has been placed under government receivership, thus placing PIW under direct government control "for the foreseeable future." Following the move, Sarzo announced that the government "will not entertain any bids, hostile or otherwise" for the Portland Iron Works.

"The Portland Iron Works is not for sale. Period. End of discussion," Sarzo said as the executive jet Sarzonia One was en route back to Woodstock for an emergency cabinet session. "We will not allow any company, especially not a foreign company to have a controlling interest in Sarzonia's preeminent industry. Let me make this perfectly clear: The Portland Iron Works is not for sale. Sarzonia is not for sale. At any price."

Sarzo said his meeting with Cabinet Vice Presidents would go a long way toward determining what the administration would do about the controversy that made PIW the second company to go under government receivership. He said he would meet with Federal Commerce and Trade Committee Chairman Lyle Cheneyworth before the meeting to determine what economic steps the government's commerce regulatory body recommends.

"Basically, what Lyle's telling me is that the commission is dead set against a foreign government or business having more than incidental control of the Portland Iron Works, or any Sarzonian company for that matter," Sarzo said.

The use of "incidental control," by Cheneyworth suggests that any chance of any single entity not based in Sarzonia or under Sarzonian control having more than a five percent stake in the company, or any combination of entities having more than a 25 percent stake in PIW, would be looked at "with extreme prejudice," according to a memorandum released shortly after Pacitalia severed diplomatic relations with Sarzonia.

"That's a strong indicator there isn't a snowball's chance for that bid," John Peters, an economics professor at Joe Gibbs University said when reading the memorandum. "Had Cheneyworth or Sarzo simply said 'with prejudice,' there would have been an outside chance if there were enough assurances. If he'd said 'with significant prejudice,' a company like [Imperial Praetonian Shipyards] might have a chance. But 'with extreme prejudice' even excludes Praetonians from acquiring a controlling stake in PIW. That's huge."

Sarzo sharply dismissed speculation that the move was a sign of thawing relations between Sarzonia and Praetonia. He also moved to assure nervous investors and citizens that Sarzonia would emerge from the recession "healthy as ever."

"One of the lessons of our break in relations with Pacitalia is that we can take nothing for granted," he said. "At one time, Paci-Sarzonian relations were on a par with those of Praetonia or Isselmere-Nieland. The reality is that now that is not the case.

"We've dug ourselves a hole through reactionary economics," Sarzo said. "We will bring ourselves out of this trouble spot and when we come through this recession, we will be as healthy as ever once we take necessary corrective measures to address the real problems extant with the irresponsible bidding of the Portland Iron Works."

Sarzo declined to address the future of company CEO and former ISN admiral Barbara Tucker, saying "once we have the full set of facts available to us, we will be in a far better position to determine the appropriate course of action." However, a source close to the President said he had to be talked out of firing her and he declined her offer to resign from the company.

"She needs to be given the appropriate chance to put things back together," the source said. "If she can come up with an appropriate remedy in house, the penalties may be more of a reminder than a punitive measure. But the ball is clearly in Admiral Tucker's court."

From Hoogenbosch Finansieel...
In response to the Woodstock Daily Mail

JJ&J: "The Sarzonian government lacks economic insight and can only come up with nationalization of companies as a means of damage control - expectations of Sarzonian economy drastically lowered for the forthcoming year(s)."

Although it has not been said, but JJ&J has been anticipating PIW being placed under 'chapter 11', but instead the Sarzonian government has decided to take firm control over the doomed company, leaving many panicking shareholders in its wake. What happens to the many shareholders, who are just as puzzled at these events as we are, and their investments remains an unsolved riddle. It is clear the Sarzonian government has never dealt with such situations before, and their economy is best described as "the Titanic after she hit the iceberg, but the crowd continues dancing."

IA Administrative District, Today -- "What people don't understand is the following" says Mr. John Law, senior executive of JJ&J Co. Ltd., "the Sarzonian economy is only kept afloat because of its national relations with stable, and might if I add, quite robust economies such as the Praetonian and Pacitalian, who do not entirely rely on a single industrial sector, or even worse, a single almighty company led by a single person." These comments rocked the financial world of IA, especially Guffingford when Mr. Law added that he'd expect to see the Sarzonian economy degrade even further, spiralling towards - perhaps - a depression.

"You must remind," Mr. Law continues "that PIW isn't the only company placed under the 'protective' blanket of state ownership. I also believe Avalon Aerospace and Incorporated Ordnance Company are indirectly placed under government ownership. Three major companies. Think about it. And you know, without joking, Mr. Sarzo greatly showed his own emotions when he said, and without knowing telling the bleak truth: 'Sarzonia is not for sale'. Next to unsmart and lacking tact, they just show the world a nation is up for grabs because of one person, ex-admiral Tucker."

"They call it receivership, but Mr. Sarzo told the international press 'for the foreseeable future.', before 'thus placing PIW under direct government control'. These are extremely dangerous ways to express and explain yourself." Mr. Law commented further. "I fail to see the logic behind this bold and absurd move. Not only the shareholders must be upset about this, it's also a clear sign the Sarzonian government will do everything to block any honest bid any company might make - thusly giving off a sign any bid is a potentially lethal one for the ill economy of Sarzonia. I simply cannot understand why this has happened, there are many sound plans to make PIW healthy again, and the Sarzonian government refuses all, and bounces them back to the makers.

More on page 4

The Parliamentarian
(Page 1 - 'Portland Iron Works collapse on the horizon' say CPI)

A few weeks ago, it may have seemed unthinkable, but Sarzonian shipbuilding giant Portland Iron Works appears on the brink of collapse today as the government is forced to step in to protect the company from bankrupcy and takeover bids. The company, which also owns most if not all of Sarzonia's defence-related industrial base, could well collapse in short order, bringing vast swathes of the Sarzonian economy crashing down with it, alleged a spokesman for the Confederation of Praetonian Industry.

'The Portland Iron Works is skating on thin ice, and the Sarzonians are perhaps beginning to realise that concentrating so much of their capital, investment and, yes, GDP in one single mammoth organisation was not such a good idea,' he continued. The CPI has long criticised the Portland Iron Works pseudo-monopoly and Imperial Praetonian Ordnance as it was under the Liberal-Imperialist administration. 'The fact is that in this paranoid world, defence pays. We should be glad our defence industry is spread over several powerful and diversified companies'.

Following revelations that a consortium of companies based in the Imperial Armies region was making a swipe for the Portland Iron Works, Praetonian money has been pouring out of Sarzonia as the Portland Iron Works headed for down-sizing and nationalisation, anihilating at a stroke a huge percentage of the Portland Stock Exchange. Conversely, now has never been a better time for Praetonian business to expand into Sarzonia with unemployment set to send the average wage plummetting. Imperial Oil & Gas has expressed interest in opening a massive engine-manufacturing complex in Sarzonia, with more Praetonian giants set to follow.

'Perversely, this situation is good for Praetonian industry. As Sarzonian companies collapse, there will be a massive gap in their labour market. With labour prices plummetting, any company that can operate independently of Sarzonian domestic pressures and unassociated with their tumbling stock exchange can do extremely well. Imperial Oil & Gas, which primarily exports, is such a company.' However, when asked about the positive impact on the Sarzonian economy, the spokesman stated that, 'This is also good for the Sarzonians, to an extent. It creates jobs and salaries that can be taxed. It gets money flowing. However, it replaces Sarzonian companies with primarily foreign ones.'

If Sarzonia is to recover from this economic catastrophe, everyone in the financial world is agreed that it will need large sums in investment and a great deal of goodwill. Sarzonia is likely to have ready access to Sarzonian, Pacitlian and Isselmerian investment, as well as capital from other nations, but many in the Praetonian financial world and some in politics are critical of the Sarzonian Government's handling of the situation. 'They are interfering with the free market by essentially nationalising the Portland Iron Works,' said a spokesman for the Imperial Libertarian Party, 'This is not the way to handle the situation, nor is threatening companies with government regulation.'

Many in the Liberal-Tory Party secretly agree, according to an unnamed back-bench source, but the Government has been hesitant to pass comment on their allies' policy. The nationalisation of the Portland Iron Works has, however, antgonised several groups within Praetonia, with Imperial Oil & Gas and the Imperial Central Bank threatening to lodge an official complaint with the Sarzonian Embassy and the Foreign & Colonial Office if the Sarzonian Government does not reimburse them for lost share value. 'We are very upset that we have not be assured that our money will be returned. If we end up losing money invested in good faith in a flagging company, we will take a very dim view of the Sarzonian Government.'

[OOC: Im assuming that IOG and the ICB were able to buy small percentages of PIW shares, but considering the overall value of PIW they are still likely to be worth millions - billions.]

From PNN.pc

http://www.adnkronos.com/Assets/Imgs/M/Maroni2.Inf--200x150.Jpg
Pacitalian Trade & Industry Commission (PTIC)
president Francesco Porantabano slammed
the gavel down on the Sarzonian government's
nationalisation of PIW, calling it "seriously
counterproductive" and "potentially damaging".

Porantabano's commission highly critical of PIW nationalisation


By Mario Battistuta, Puntafora

The president of the Pacitalian Trade & Industry Commission was forced to lower the corporate credit rating of Sarzonia from seven to six after the government there effectually nationalised PIW by placing it under receivership. The scandal-plagued and corruption-wracked Iron Works is now facing an inevitable collapse, according to top Praetonian economists.

Francesco Porantabano had already lowered the Sarzonian CCR from 8.0 to 7.0 after it was discovered PIW, a company that makes up 23 percent of the Sarzonian gross domestic product, had continued to make outrageous bids for already overvalued companies in Space Union. That was down from an original rating of 9.0 before the Pomentane Ballistics debacle.

Today, Porantabano lowered it by one more point, to 6.0, saying he was "forced to act".

"The operation of capitalism is strongly hampered when companies are nationalised or otherwise subject to massive interference by the government," president Porantabano said today in a typed statement. "The PTIC cannot support this move... it truthfully nationalises a large section of the Sarzonian economy at a time when it is crucial that the free market have more liberty to operate."

The corporate credit rating is a useful tool for investors because it tells them what countries will provide favourable investment environments in terms of the level of welcome an investment will receive and the results it will yield. Countries with more government interference will not score high on the ten-point rating scale, and countries that are hostile to Pacitalian investment will do the same. Like-minded countries, especially those with strong ties to Pacitalia, also use the PTIC-CCR to a lesser extent as an unofficial guide. Knootoss, Hamptonshire and the United Kingdom are all tied at the top at nine points.

Praetonian economists similarly slammed the move, with the Confederation of Praetonian Industry (CPI) reminding the global financial community of its committal to free market economies, and its continual disapproval of Sarzonian protectionist trade tactics and mass industry conglomerations. The CPI warned the Portland Iron Works could be heading for bankruptcy.

"When a government puts a company under receivership even if it's not really financially bankrupt, it still gives the wrong impression," PTIC senior economist Giancarlo Andofanzo said. "People are going to think PIW is actually bankrupt and make a run for it, causing a bankruptcy or a major company collapse anyway."

The PTIC's official statement cemented its opinion that the Sarzonian move was the wrong one, calling the nationalisation of PIW a "seriously counterproductive" move. "This potentially damaging act could have even more serious consequences for a Sarzonian economy that prides itself on protectionist principles and, by choice, a mostly domestic industrial base."

The CPI sees a huge opening of opportunity for foreign investors, particularly Praetonian and Pacitalian, as the need to fill the gap left by dying domestic companies widens.

"Praetonia and Pacitalia will be increasing their economic cooperation in the near future as they try to keep other nations away from open Sarzonian wounds as much as possible," Andofanzo added. "Perhaps even Isselmere-Nieland will join this unofficial triumvirate."

from Seaburg Independent


Sarzonia's Cold, Dark Winter


Over the past week Hamptonian investors have quietly pulled nearly twenty billion kroner out of the Sarzonian economy. With rising instability, questions of Sarzonian market resilience, and the widely condemned government takeover of Portland Iron Works market analysts predict even further declines in Hamptonian investment.

The investment house Fitzwalters, Price and Howard lowered the credit rating of the Sarzonian Government to BBB, their second lowest rating with similar actions taken later by other investment and credit firms. The Securities, Commerce and Trade Directorate (SCTD), Hamptonshire's national regulatory body, formally issued a warning yesterday that stated, in part, that "the SCTD cannot advise capital investment in the Sarzonian market at this time or in the foreseeable future." Newly appointed SCTD Director-General Margrethe Cirmos-Varcolik, a former Division Vice President of WTI-Sarzonia, is believed to be deeply interested in restoring Hamptonian investor confidence in Sarzonian industry.

The recent tumble in Sarzonian-based investment was more than off-set by a huge upswing in both large and nervous investors pouring kroner into other foreign companies. Tenatura Corp announced yesterday that it was going to invest two billion kroner from the sale of Sarzonian stocks into Pacitalian treasury bills. WorldTech Industries announced that it has begun to look into expanding its current energy and agriculture ventures in Sarzonia along with the possible acquisition of "dying domestic firms." On this news the Seaburg Stock Exchange alone rose by thirteen points with heavy trading in Pacitalian, Praetonian and Isselmerean stocks.

The Lord Protector said in a short interview with HNN, "Sarzonia has, in its own way, dug itself into its own hole. The effective nationalization of the Portland Iron Works has done much more harm than it was worth. All that we can hope to do now is to mitigate the after-effects." Lord Rosecrans, who is still in the process of recruiting the Triumvirate Council, signed an Executive Order releasing up to one hundred billion kroner from the Royal Treasury to help combat the effects of a Sarzonian recession. The funds would be used to purchase government and corporate bonds in an effort to prevent a wholesale collapse of the Sarzonian economy.

Sarzonia's Defense Industry Plummets; Satpul Fears for the "Worst!"

Ayadi, Space Union - Earlier today, in a surprise move, Space Union's close ally, Sarzonia declared that it will be nationalizing its main defense corporation, Portland Iron Works after a debacle in Space Union over overbidding on companies resulting in an ego-bidding all over the board.

Today, Sarzonian President Mike Sarz declared that the corporation, Portland Iron Works, Sarzonia's main defense corporation and accounting for over a quarter of the GDP of that nation, was being nationalized for the "foreseeable future" according to him. This comes as the company is faced with a crisis that resulted from poor bidding in Space Union's companies during the economic recession that rocked it.

This move has also effected Space Union's economy as well as Space Union's largest arms manufacturer, SUNACS, a subsidary of PIW, is fallen under the Sarzonian control. Government officials have called upon the Federate to act earlier today to respond to this problem as this gives a foreign nation a grip on the Union economy that is "uneasy" considering the problems that occured. The Federate has declined to answer on this subject but earlier he said, "I will do whatever in my power to solve this issue. This problem is not Sarzonian only, it is Space Union now too." Economist agree with this as a foreign government has gained control of a large amount of the economic power of Space Union. Reports are coming that the Federate may order the SUNACS division to just seperate from the company now, but it is likely that he may not do that. In his own words, "My upmost affair right now is to contact Mike Sarz and deal with this problem. It is a threat to both of our economies, something that Space Union has just cleared."

Meanwhile, foreign economist continue to critise the move by the Sarz's government as a "detrimental" act for their economy. We can only watch and wait as this continues to unfold at this speed.

OOC: Hey, Sarz, I'll need to talk to you on MSN when you get on.

The Silver Sky International News Network

"Laughable Bidding by PIW Sinks Sarzonian Economy"

By: Norman Jackson
Comberth Harbor, The Silver Sky - Just yesterday the Sarzonian Economy hit a massive recession. Although details are sketchy due to the fact that Silver Sky Citizens still aren't allowed into Sarzonia, however the main cause seems to be ego-enduced overbidding by Portland Iron Works. This comes on the heels of a recession in Space Union, although the two seem to be unrelated.

The stock market opened today with many foreign investors trying to pull out investments in Sarzonia with minimal loss. Although The Silver Sky was shielded from most of the effects due to the embargo that had been inplace on Sarzonia from several months ago. However, due to heavy investments in Space Union industries a few investors were hit hard, We Buy It Inc. reportedly lost 3.2% of their foreign value on top of the monthly loss of 1.3% after the SU recession.

Rumor has it that many companies with facilities are planning to lay off many works. WBI Inc. has alone said they would be laying off 10,000 full time workers in Space Union in at least two months, along with the closing of 2 naval yards and several factories

But the situation in SU is not totally lost, production of several ships of the newest class of naval vessel, the Ravager-Class will be reportedly moved to the SU based Naval Yards to help make up for some of the loss of jobs.

It has also been reported that within the last few hours that the Sarzonian Government has placed PIW under government control after the company received an offer to buy it out. It seems the Sarzonian Government is more stubborn then previously thought.

However, as this economic earthquake his Sarzonia many a Silver Sky Citizen turns an unsympathetic eye towards the Sarzonian problem.

On another note however, WBI and many economic experts expect many of the investors that pulled out of SU to invest that money into the booming naval industry of WBI and the expanding rail and electric companies.

Many an investor has said this quote, "PIW destroys more nations then their ships do!"

From La Repubblica Oggia and the Seaburg Independent (Online Editions)

http://www.ogdenfinancial.com/images/global%20currency.jpg
Scrambling investors have forced the respective
treasuries of Hamptonshire and Pacitalia to sell off
substantial holdings of Sarzonian dollars.

Hamptonshire and Pacitalia sell off SZ$ in financial abandon-ship


By Alessandro Spinodore, Mandragora, and Jessica Kelly, Weslyn

Hamptonshire's Royal Treasury and the Central National Bank of Pacitalia each released SZ$500bn in Sarzonian dollar currency reserves Tuesday evening as further moves to protect against the effects of an inevitable Sarzonian recession. The move showed further signs of a possible unity in the future of Hamptonian and Pacitalian monetary operations.

The mass selloff, yet another attempt to block any carryover effects from widely expected massive damage to the Sarzonian economy, will drain the value of the Sarzonian dollar by at least fifty cents, according to preliminary estimates. The implosion of the Sarzonian dollar was similarly inevitable, as a highly-valued Sarzonian dollar would not have been able to pass muster alongside a national economy that is about to sink into major trouble. The new, much lower value of the Sarzonian currency is shocking, but will be more proportionate.

Analysts expect the Sarzonian dollar will fall to a trading level not seen in years, or levels between SZ$2.00-2.50 to Đ 1,00 and K 1.00. Foreign financial institutions within the Incorporated States are also expected to increase interest rates while cutting back in personal and small business loans, and the PTIC may end up further lowering the corporate credit rating of Sarzonia.

Meanwhile, it has been reported that the two treasuries will be reinvesting the money gained back from the massive exodus of Sarzonian dollars into the Space Union currency, the Spaco dollar. In addition, the CNBP will buy some kroner while the Hamptonian Royal Treasury is expected to buy doura. The move will protect the Space Union industrial sector against a recession relapse (SUNACS, the country's largest arms manufacturer, is nearly wholly owned by the Portland Iron Works) and will shore up Hampto-Pacitalian investment in Pacitalia's northeastern neighbour.

"Tonight's move was absolutely necessary," CNBP vice-president and spokesman Kemal Bezir Araz said of the mass selloff. "We must protect three economies and try to salvage a fourth by guiding the readjustment of the proportionality of the Sarzonian dollar to a more realistic rate. This may help to avoid a massive deflation of that currency, but the signs are so negative right now that we will have to play it by ear."

Sarzonian financial institutions have not responded to this news yet.

From the Georgetown Gazette (online)

United Kingdom Offers a Helping Hand to Sarzonians

While the Chancellor Slaps Sarzo With the Other

By Charlotte Cruise
The Georgetown Gazette, Imperium
________________________________________

Just before the close of the business day in Imperium word arrived from the Citadel that the United Kingdom would be offering a small hand to the Sarzonian people as their economy continues to accelerate in its downward spiral. The announcement, however, came only after a day that saw the leading financial institutions formally warn investors to avoid the Sarzonian economy and scathing words from the Chancellor Stephen McKay.

At the evening press briefing, usually held by the press secretary, Prime Minister Alistair Tetley announced that the United Kingdom would be opening its borders to the Sarzonian population, a people previously heavily scrutinized before entry into the UK and required to obtain several valid identification documents and visas for even short stays. Lord Salisbury detailed plans he had issued to Foreign Secretary Emily Deveraux that would allow for “aid to be expeditiously rendered to those in need,” adding that, “although there are real and significant differences between His Majesty’s Government and that of President Sarzo, our political – and economic – differences must be, and shall be, cast aside for we Azazians truly are a compassionate people.”

The plans laid out by the Prime Minister call for the Foreign Office to revisit the refugee system, which still maintains archaic sub-classifications of refugees. In particular, the Foreign Office is to open to Sarzonians the option of applying for temporary status as Economic Refugees – an application not used since the collapse of the East Datrian economy in the early 1980s, a time when thousands of immigrants flooded the Home Islands as the East Datrian economy crumpled under a collapsing sugar and spice commodity market.

Following this announcement by the Prime Minister came late news from Pacitalia, yet to be confirmed, that the Pacitalian government is considering similar measures although far stricter in nature – reportedly only covering Pacitalian expatriates.

Earlier in the day, leading investment firms throughout the nation followed the steps of their Pacitalian and Hamptonian colleagues and slashed the credit ratings of the Sarzonian government while releasing statements warning Azazians from investing in the Sarzonian economy, with the prestigious firm Hawke and Yardley bluntly stating in their report that “Sarzonia no longer can offer the private, or even corporate, investors the confidence necessary that the market will dictate the economy.”

At a morning meeting at HM Treasury, Chancellor of the Exchequer Stephen McKay addressed reporters who raised questions regarding the Sarzonian nationalization of Portland Iron Works. In what were unusually brief remarks for the Chancellor, he called for the United Kingdom to “investigate the possibility of black-listing Sarzonia.” Pressed, McKay added that “the Sarzonian government frequently black-lists foreign nations for what are breeches of political, cultural, and economic mores of liberal and enlightened countries; and then turn right about on their heels and start nationalizing their economy – and I daresay that as a percentage of the Sarzonian GDP Portland Iron Works has all but become the Sarzonian economy. Perhaps black-listing Sarzonia should be a course of action this government considers.”

Concluding the business day, the UK markets closed up after a day of heavy trading that saw the few Sarzonian shares held by UK investors dumped in favour of Pacitalian, Hamptonian, and Praetonian companies. The Philadelphia Exchange closed up twenty-seven points and the Barents Exchange was up by twenty-two.

[OOC: Geoffrey Middleton is the Prime Minister of Isselmere-Nieland, Sir George Fredericks is the Minister for Foreign Affairs..., and Mr Colwan the head of the Royal Shipyards.]

If I have to look at these bloody figures one more time, I'll go blind, thought Henry as he examined the printed spreadsheet that lay before him. "Can it be done, Mr Middleton?"

"With great difficulty, Your Majesty," answered the Prime Minister, "but we might be able to remove some of the burden upon Sarzonia using the emergency contingency fund, and by floating further government bonds."

"This is almost as bad as that sodding war the Sarzonians had with the Panterans," Sir George Fredericks muttered, uncharacteristically sullen, burdened by the thought of releasing so much money during the United Kingdom's own economic crisis.

"You're not the one who'll be blamed for this, we are," Alexandra uí-Nechtaen, the Minister of Finance, grumbled, pointing to Middleton and herself.

Horace Laederbeck, Minister of Defence, was unusually upbeat. "You needn't worry about Andvari. The situation is well in hand," he said, smiling broadly at Middleton, who could not fail to reply in kind.

"Then perhaps the offer should be made before Parliament," suggested the King. "Allowing for the success of Mr Colwan's visit."

"Yes, Your Majesty," the Prime Minister answered.

***

From Daurmont's Financial Journal

Mr Middleton's tangled web
Daurmont, ISSELMERE - Neville Colwan's life has become a little stranger. After being chastised in Parliament and the media for his perceived failure to keep the Andvari Shipyards (http://forums.jolt.co.uk/showthread.php?t=466598) open, Mr Colwan is being asked to go to Woodstock to meet with the Sarzonian Lieutenant President.

Opposition Leader Andrew Wotheringham (LDP, Tortshill-S.) believes it is a simple ruse to distract Parliament and the people from the real calamity. "20,000 jobs lost and he becomes ambassador to one of our closest allies; is this how the Rt Hon Member punishes failure?" Mr Wotheringham declared bemusedly yesterday.

Prime Minister Middleton replied that Mr Colwan, "was not an ambassador, and was merely on stress leave," after which pandemonium broke loose on both sides. When asked what he knew about Mr Colwan's visit, Sir George [Fredericks] answered that he "was unaware Mr Colwan had left his post, and was most saddened to learn the news."

Mr Colwan's odd holiday is not the only mystery surrounding the closure of Andvari Shipyards. Strangely, whilst some of the workforce has been displaced, official unemployment figures for Anguist have not increased. Most bizarre of all, apparently work is still going on at the Shipyards, with one of the Royal Navy's Europa-class super dreadnoughts reputed to be entering the facility and dock being prepared.

Perhaps in light of the Azazian offer the Union government wishes to lure Sarzonian workers northward? Only time will tell.
--Stuart Morgan

Novacom Diplomatic Directive

From: Novacom Economy Minister Beckett Jalenza
To: President Mike Sarzo, Sarzonia

Greetings,

We have recently heard of your current economic troubles and I would like to make a proposal, I would make this clear now however, this is not a takeover attempt. The Proposal I have entails a series of investments and Joint projects between Portland Iron Works and our own Novacom Manufacturing, on a variety of Technological, Military, Civilian and another project that will be of great historic importance.

Upon Completion of these Projects there would be several lucrative contracts available, during the course of these projects Investor confidence would likely be restored, if not the investments we would make would help considerably in stabilizing the situation.

Signed,
Economy Minister Beckett Jalenza (http://img.photobucket.com/albums/v619/DK_Viceroy/Novacom/EconomyMinisterBeckettJalenza.jpg)
The Message is signed in an indecipherable language, probably Novan

Hoogenbosch, Ministry of Financial Affairs

"Mr. Sweet, you are the minister of fianance and economy, surely you have some vengeful idea's how to ruin Sarzonia even further. And might I add, I have to thank you for your contact with JJ&J. Absolutely brilliant, and I knew they'd be very willing to do it." Maximillian Kalba, the head of state sat on his desk sipping from a glass of tonic. Carefully assessing Sweet's reaction, Kalba wanted to know how far he could take this little adventure.

"Of course Mr. Kalba. So far others have been doing our dirty work. Hamptonshire and Pacitalia are doing more damage by dumping Sarzonian dollars than they think. JJ&J's bid upped the pressure on Sarzonia even further, and our dramatized newspaper articles did the rest. Still, we need to do more. Dumping their dollar is a sign people do not trust Sarzonia anymore. We could do the same."

"We could..." Kalba mumbled. Dumping a silly currency! Is that all that fool Sweet can think of? What needs to be done it completely undermining confidence in a happy ending. "Sweet, what we need are economic sappers. People who dig beneath Sarzonia, dig so damn deep they hit prehistoric layers of shit and then blow it up. I don't want a partial collapse, I want ground-zero. You know what I mean?"

"Of course. Well..." Sweet paused.

"Well what?" Kalba asked anxiously. When Sweet said well, you can bet on your life he's making some kind of very nasty plan. This time it'll be good, Kalba feels it.

"We can invest Sarzonian dollars on the Guffingfordian stockmarket, create bubbles and let them burst. We need to... Remember Sarzonia was being busy with investing on our platinum market to make fuel cells for environmentally friendly cars?"

"Yes, why?" Kalba asked.

"We can create a financial story around that. Suppose Sarzonian private companies and indirectly their government invested and bought claims in Guffingfordian platinum mines. We both know, but the public doesn't, that many mines around Änglenbach have begun to yield less platinum over the past few years. While new ones have opened around the city, Sarzonia never invested in those."

"I see, please go on." Kalba interrupted.

"Yes, when we release our annual mining report in a few days, we can tell the world we see a significant drop in the platinum production, it will render much - if not all - of their investments useless. When we publically announce Sarzonia, the beacon of anti-national socialism appears to be willing to trade with us after all, we also punch them in their moral face. The damage might be minimal, but its a psychological effect."

"I say we do this. If it ain't working out like it should, we can also resort to dumping the Sarzonian dollar."

"Yes, we hold quite a lot of those for our standards really, nearly 390 billion in securities."

From Seaburg Independent


http://img.photobucket.com/albums/v114/hamptonshire/NS%20Pictures/cv3.jpg
SCTD Director-General Margrethe Cirmos-Varcolik
calls for a meeting of central bankers shortly after
being named the new President of the Kongelig
Nationalbank (Royal Central Bank of Hamptonshire)
and Acting Director of The Royal Treasury

Cirmos-Varcolik calls for Bankers' Meeting

Following moves by Praetonian, Pacitalian and Azazian officials, the SCTD issued its sternest warning to date concerning the mounting Sarzonian Crisis. The statement warned all private and small to medium institutional investors to refrain from investing in "troubled industries" until further notice. The mounting questions facing the Sarzonian Government threaten to overwhelm any attempts made by allied governments to lessen any possible financial collapse.

Margrethe Cirmos-Varcolik, partly in response to the rapidly deteriorating situation in Sarzonia, was appointed by Lord Rosecrans to take over the top jobs at both the Royal Central Bank and The Royal Treasury. Mrs. Cirmos-Varcolik will now have nearly unfettered authority to guide Hamptonian monetary and regulatory policy.

"For the sake of our domestic economies as well as the situation in Sarzonia," Cirmos-Varcolik said in a speech shortly after becoming President, "I am asking that my fellow central bankers from Praetonia, Pacitalia, Isselmere-Nieland, Azazia, Space Union and any other primary affected nation come to Seaburg for an emergency conference. Up until now we've all been moving around in the dark without a real idea of where we need to go," she added, "All of our nations wish to stablize the Sarzonian economy while protecting our own economies. By coming together we will be able to root out any redundancies."

It is not known if all the invited nations would attend the conference but with the recent sale of Hamptonian and Pacitalian Sarzonian dollar reserves and the threat of Azazian "blacklisting" hanging in the air, a meeting of central bankers could be useful for at least keeping other nations aware of anti-recession measures.

"Your Majesty, have you read this?" Ms uí-Nechtaen asked King Henry V as he pulled at his ermine robes of state in preparation for his entrance. She handed him a print-out from the day's electronic copy of the Seaburg Independent.

From his immediate reaction, it was obvious to the Minister of Finance he hadn't; the King lips formed the briefest of snarls before he regained his composure. "Minister uí-Nechtaen, please inform Ms Cirmos-Varcolik and the Hamptonian government that you and representatives of the Central Bank will meet with them. Our Audience will proceed."

---

Official Journal of the Parliament of Isselmere-Nieland
Royal Audiences
(The Horrocks)

9 February 2006
Hall of Congregation, Pechtas Castle
Isling, Daurmont, Isselmere, UKIN

...

President of the Senate: My Lords, Ladies, Honourable Senators, Members of the House of Assembly, and Honoured Governors of the Union Bank of Isselmere-Nieland, I bid you rise for His Majesty, the King.

(Parliament rises as HM King Henry V enters with HM Queen Christine, preceded by the Gentleman Usher of the Silver Rod, escorted by the Lord Steward (Lord President of the Council of Peers), the Lord Chamberlain, and the Lord High Chancellor, and pages bearing the royal train. The Gentleman Usher holds the Mace of the Senate (the Silver Rod) before him. In his right, the King bears the scabbarded sword of Alfred I, the Orb of Isling in his left. The Queen carries the Sceptre of Edmund across her chest. The Lords Royal bear the scabbarded swords of the Knight Grand Cross of the Tern (Lord Steward) and the Knight Grand Cross of the Linen (Lord High Chamberlain). The Lord High Chancellor holds the Grand Roll on which rests the Mace of the Supreme Court. Resting the sword on his lap, His Majesty grants the Lord High Chancellor leave to bid the Audience to sit.)

Lord High Chancellor: As Lord President of the Royal Audience, I hereby address Parliament. His Majesty, King Henry the Fifth of the Isselmere-Nielanders, Keeper of the Constitution, calls His Loyal Parliament and Councillors of State to Audience.

(The Lord Steward sits before and to the right of HM the King, the Lord Chamberlain before and to the left of HM the Queen. The Lord High Chancellor sits before and between them all.)

HM the King: Lords, Ladies, Councillors of States, Loyal and Honourable Senators, Members of Our Loyal Assembly, and Our Honoured Governors of the Union Bank, We bid you welcome to Our Hall. We have convened this Audience to request Our beloved Parliament give Us leave to assist Our Sarzonian siblings in this time of economic turmoil.

(There are mutterings amongst members of the Government and Opposition benches.)

HM the King: Very well, We shall be brief. We wish the Union Bank to secure up to one-eighth of a billion* Sarzonian dollars released by Praetonian, Pacitalian, and Hamptonian investors, to be used to relieve the present burdens upon the health of Sarzonian industry.

(Shouts of dismay from both sides of the Hall. Calls of "What of Andvari?" from Opposition benches.)

Lord High Chancellor: Parliament shall be silent whilst His Majesty speaks. (Awaits quiet.) Your Majesty.

HM the King: Our thanks, Lord High Chancellor. We request this extreme measure of Our Loyal Parliament in the hope that the Sarzonian government might accept it, and upon the understanding of new orders being
placed at the Royal Shipyards' Andvari facilities.

(Gasps of astonishment from both sets of benches. Several Councillors look astonished.)

HM the King: To fund these measures, We request Our Honoured Governors of the Union Bank to offer a further domestic release of government bonds, and We shall offer funds from Our Royal Treasury as well as a surety.

(Parliament is aghast.)

HM the King: We thank you, Our Lords, Ladies, Loyal and Honourable Members of Parliament, Cherished Councillors of State, and Honoured Governors of the Union Bank, for hearing Our request.

(The Royal Entourage rises and departs.)

*1 billion = 1 million million or 1 trillion; thus, 1/4 trillion NS dollars are being offered.

[OOC: I noticed that Space Union's and The Silver Sky's posts came in spite of not TGing me beforehand. The rules of this thread were pretty clear from what I remember: If you want in, TG me. I'll allow their participation, but the next person to do so without clearing it with me first will have their participation ignored.]

Woodstock Daily Mail

Eight arrested after recession-fuelled riots
by Jennifer Halloran
Daily Mail Staff Writer

WOODSTOCK (9 February 2006) -- After a series of condemnations and threats by the United Kingdom of Azazia and by Pacitalian Trade & Industry Commission president Francesco Porantabano, smouldering anger and resentment among a populace facing a largely silent government reached a breaking point when a riot broke out in front of the former Pacitalian embassy.

Chants of "stay out" and "shut up" rang out as Woodstock Police Department dressed in full riot gear tried in vain to prevent violence. Eight protesters were arrested after Porantabano was burned in effigy in front of PNN cameras.

"We want to tell that [expletive] Porantabano he needs to take his vendetta against the Portland Iron Works and Sarzonia and shove it," said now-unemployed PIW call centre operator Nell Willard. "He's doing more damage to the Sarzonian economy than our sworn enemies are."

A source within the Incorporated Sarzonian Government said on condition of anonymity that Porantabano "is doing significant damage to our economy and to the fragile state of Paci-Sarzonian relations."

"The way things are going, [President Mike] Sarzo is considering cancelling his trip to Praeton," where he was scheduled to meet with former Pacitalian Prime Minister Timotaio Ell, the source said. "Resentment toward Porantabano is at an all-time high. I don't think even [former Hamptonian Prime Minister Mel Ziller] is as reviled in Sarzonia at the moment.

"Don't forget that man removed copyrights and trademarks from Pomentane Ballistics. He's completely unprincipled. I'd trust him as far as I can throw him."

According to a recent Daily Mail/Gallup poll, Porantabano was voted the man most responsible for fragile Paci-Sarzonian relations by 68 percent of those polled. Ell came in a distant second with 19 percent of the vote followed by Sarzo at 11 percent. Deputy Senior Vice President Grant Haffner received 1.7 percent of the vote.

Lieutenant President Nicole Lewis blasted Azazian Chancellor of the Exchequer Stephen McKay's call for black-listing Sarzonia after Prime Minister Alistair Tetley offered Azazian assistance for dealing with the recession.

"The Incorporated Sarzonian Government does not appreciate the tenor of the remarks made by Chancellor McKay and such a move would be responded to in kind," Lewis said. "If that is the prevailing attitude of the Azazian government, we'll be sure to watch our backs."

Meanwhile, House Speaker Connie Jacobi (Progressive-Somerset) introduced a bill called the Economic Recovery Act aimed at bringing Sarzonia out of its recession. The legislation calls for several measures: Lowering the national income tax from 26 percent to 20 percent; further cuts in welfare and unemployment insurance payments with more stringent requirements to earn benefits; and a federally-mandated breakup of the Portland Iron Works.

"The lack of diversification of our nation's industries is a central reason we are in this predicament," Jacobi said. "Until such time as our economy recovers from this economic downturn, we must undertake some painful decisions that will benefit the nation in the long run and enable us to work our way out of the economic morass."

Former House Speaker Josh Williams, now a law professor at Joe Gibbs University in Nicksia, blasted Jacobi's bill, saying it "hurts the very people it needs to help.

"People are losing jobs and going on the unemployment lines and we're slashing benefits? Is she trying to ensure her defeat in November," he asked.

A spokesman for Senator Brian Delgado (Conservative-Cooke) said he and Jacobi were discussing combining the Corporate Accountability Act with the Economic Recovery Act as a two-pronged measure meant to address the economic woes plaguing Sarzonia once and for all.

"Jacobi's bill deals with the immediate problems of the recession and Delgado's bill takes on the biggest culprit," the spokesman said. "If those bills get passed, they could go a long way toward restoring consumer confidence and increased investment into Sarzonia."

Despite the economic troubles afflicting the country and the recent move to place PIW under government receivership, the company just received its largest order from an export customer as Sarzonian allies Skinny87 placed a massive order totalling over $30 trillion.

"If Portland Iron Works can get their ship righted, we'll go a long way toward getting back on our feet," said Senator Courtney Forbes (Progressive-New Isselmere). "If we can restore consumer and investor confidence in Sarzonia and Sarzonian products, we will go a long way toward restoring our economy to its previously robust conditions."

"As massive as that order is, and as wonderful a measure as that is considering our current economic situation, that only addresses one symptom of a disease," Delgado said. "Trust me, we're not going to look a gift horse in the mouth, but we're also not going to proclaim that one order the solution to our problems, no matter how terrific it is."

From PNN.pc

http://portland.indymedia.org/icon/2004/11/302275.jpg
Increasingly militant Sarzonian protesters burned
an effigy of PTIC president Francesco Porantabano
in front of the Pacitalian embassy in Woodstock
Thursday as countries around the world continued
to enact defensive measures to soften the blow
of a Sarzonian recession on their economies.

Sarzonian political instability grows; stock value further depressed


by Alberto Quintanilla, Woodstock

Trading on the PAX800 Mandragora Stock Exchange continued to show signs of lost confidence in Sarzonian economic ability Thursday, after riots outside the Pacitalian embassy proved the situation within the Incorporated States was becoming much too difficult to handle for the Sarzo administration.

Protesters burned an effigy of Porantabano and attempted to trash the Pacitalian embassy but were just barely held back by a combined force of Pacitalian military police and Sarzonian anti-riot squads. Protesters and anonymous sources within the Sarzonian government continued to assert that Pacitalian Trade and Industry Commission president Francesco Porantabano was singlehandedly responsible for starting the recession, and that he was "deliberately seeking the downfall of PIW". One protester charged that Porantabano had a "vendetta" while others called for the Pacitalian government to "stay out" and "shut up".

Prime Minister Constantino Sorantanali called for cooler heads in Sarzonia in this dispute, saying "Mr Porantabano has as much control over the Sarzonian economy as a ladybug" and that "the messages being broadcast by the Sarzonian government and media are giving a false impression that we are out to cause considerable harm to their economy and its integrity."

"Frankly, I do not see how they can reason something like that," Sorantanali said. "Yes, our relations are quite substandard in comparison to previous years, but make no mistake about it - we are still friends, and the Pacitalian people most definitely want to help out in this crisis to prevent any further damage."

He reiterated last night's massive dumping of Sarzonian dollar reserves by the Central National Bank of Pacitalia and the Hamptonian Royal Treasury "as defensive, purely and simply". He added there may be some confusion among Sarzonians as to the structure of the financial bureaucracy in the Democratic Capitalist Republic, saying "Mr Porantabano did not and cannot give the order to dump currency reserves. The CNBP and PTIC are separate entities."

He added: "Mr Porantabano also does not speak for the federal government. The PTIC is not a government organisation and his views do not necessarily reflect my administration's."

Mr Sorantanali expressed his concern that mounting Sarzonian opposition to a nonexistent Pacitalian "insurrection" would possibly cause Pacitalian taxpayers to oppose sending economic aid to Sarzonia. "This government is committed to helping, but we cannot justify that if the people who voted for us and will be forking over the majority of the funding for an aid package do not want to. We simply cannot aid a nation that appears hostile to our genuine attempts to help them emerge from this crisis."

The prime minister also said he was concerned over a poll that shows Sarzonians widely believe the Pacitalian government and the PTIC are responsible for the slacking in Sarzonian-Pacitalian relations. An overwhelming 68 percent said Porantabano was singlehandedly responsible, while former prime minister Dr Timotaio Ell placed a distant second at 19 percent. No Sarzonian government figure placed above 15 percent in the vote, a sign of the hatred Sarzonians have harboured toward Pacitalians since November.

Sorantanali said "the misconception or assertion, by anyone, that any Pacitalian, or any member in Dr Ell's administration was in any way committed to the destruction of Sarzonian-Pacitalian relations is preposterous. We have, despite the incident in November, continued to consider the Sarzonian state among our greatest friends in the international community. Any assertions that we wish to force a recession or depression in Sarzonia and see the destruction of the Sarzonian economy are false."

Mr Sorantanali said officials from the Ministry of Finance had phoned him and offered to look over the Sarzonian legislative acts proposed by prominent government figures there and provide input and suggestions on how to speed up the process of recovery from a devastating recession that is now in full swing in the Incorporated States. The Sarzonian economy has lost an estimated US$2,3tn since the recession began last week.

Meanwhile, investors continued to abandon ship, massively selling off their interests in Sarzonian companies after the news that political instability was growing in the Incorporated States. Investors redirected their money to Azazian, Knootian and Space Unionist companies, with the stock exchange dropping 18 points after gaining back much of their initial morning loss from the selloff.

Investing firms have said "investors are scared to death of the, up to now, government inaction, and political instability of the people", saying they have "never seen anything like it".

Taxpayers did express concern, as expected.

"If [the Sarzonian people] are really that hostile to the prospect of Pacitalian assistance," Marco Azzurgano, 58, said, "how can we feel comfortable with sending them that assistance? It would just be a waste. I would certainly like to help them, but it seems like we are not wanted, and that is a shame."

From the Georgetown Gazette (online)

Chancellor McKay to Visit Seaburg

While Sarzonia Rattles its Increasingly Rusty Saber

By Charlotte Cruise
The Georgetown Gazette, Imperium
________________________________________

Days of frustration at the continuing collapse of Sarzonia have finally spilled out into unbridled violence and mob-like behaviour as the Sarzonian people have begun to let loose their frustrations and resentments regarding the implosion of their nation’s economy. The focus for today’s violence was Francesco Porantabano, the president of the Pacitalian Trade and Industry Commission.

At a demonstration outside the Pacitalian embassy, rioters burned Porantabano in effigy while Sarzonian riot police proved impotent and incapable of securing the situation – instead preferring to remain silent until after the event to arrest eight individuals. The public reaction came after an announcement by the Pacitalian National Bank that it would be dumping SZ$500bn in Sarzonian dollar currency reserves.

In response to the violence, and the earlier inability of the Sarzonian police to contain it, Prime Minister Tetley called for the Sarzonian government “to enact stricter measures to protect diplomatic personnel and the property of foreign governments – no matter the level of tension between the governments involved.” When pressed by reporters about his confidence about President Sarzo’s ability to control the situation, the Prime Minister responded, “while I must say I do harbour some doubts about his government’s ability to control the situation I would like to focus on the positive aspects of today: I’ve not heard of any reports stating significant injuries or deaths and the sovereignty of the Pacitalian embassy was maintained.” Lord Salisbury’s comments come despite a lack of diplomatic presence in Sarzonia as the UK and Sarzonia have yet to exchange embassies.

Following the live footage of the protests the government announced that Chancellor Stephen McKay would be attending an emergency conference in Seaburg, offered by the Hamptonians to help form a unified and strong reaction to the Sarzonian collapse – one that would both help the Sarzonian people while protecting the economies of those other nations involved. Also thought to be attending are the Pacitalian Agustinate of Finance and financial leaders of Praetonia, the UKIN, as well as Space Union.

McKay’s trip, however, comes on the heel of what the Citadel is calling “a series of unprepared remarks… not fully representative of the position of His Majesty’s Government.” Following a meeting at HM Treasury yesterday, McKay called for the United Kingdom to investigate the possibility of “black-listing” Sarzonia.

These statements have incensed the Sarzonian government, their Lieutenant President Lewis lashing out saying McKay’s comments were “unappreciated” and more importantly that “such a move would be responded to in kind.” It should be factually noted, however, that Lewis condemned McKay for his call after Lord Salisbury’s offer of assistance – although the Prime Minister’s offer came several hours after the morning Treasury meeting.

Confronted in the House of Commons by Conservative MP Howard Livingstone, McKay defended his statements after what witnesses describe as a possible nod of approval from the Prime Minister, saying that “the Sarzonians should feel free to black-list whoever they please,” going on to add that “though they should take note the black-listing of the United Kingdom carries with it a far darker stain nowadays than that of Sarzonia.”

The markets reacted positively, though just barely so, to today’s news as UK investors took heart at the Hamptonian offer and the continuing shift of foreign capital out of Sarzonia and into the United Kingdom. Additionally, news of above-expected productivity in the colonial markets also boosted the markets as the Philadelphia Exchange closed up by seventeen points and the Barents finished up by nine.

Woodstock Daily Mail

Sarzo calls for calm as tensions rise

by Jennifer Halloran
Daily Mail Staff Writer

WOODSTOCK (10 February 2006) -- President Mike Sarzo pleaded for calm among Sarzonians and worldwide investors in a rare midday speech from his office in the Gray House following riots in front of the former Pacitalian embassy compound.

"Reacting with unremitting hostility in a time when our financial house is in disarray is not conducive to our need for true healing," Sarzo said. "We are in a difficult way economically. No one is denying that. But we need to be able to pull ourselves out of this crisis and we can only do that if we are united.

"Signore Porantabano is doing his job to ensure that Pacitalia's interests are secured economically. It is not his job to mollycoddle us and tell us what we want to hear when we need to address our fiscal problems with restraint and with intelligent decision-making, both of which have been regrettably lacking in the past few days."

Sarzo's speech also touched on several other subjects, notably the offers of financial asylum by Azazia and the prospect of Pacitalian assistance.

"We are not a country that very easily asks for help," Sarzo said. "We are not a country that willingly looks to a country with whom we have limited relations as a source of financial healing. However, now is not the time to smack the hand that is offering aid that the Sarzonian people need."

Sarzo also made his first direct public statement about the status of the Portland Iron Works since the company was placed under government receivership several days ago.

"Once the investigation into the bidding practices of Portland Iron Works is complete, we will take the necessary and appropriate steps," Sarzo said. "When consumer and government confidence is restored in Portland Iron Works' ability to do business, we will allow them to be removed from receivership.

"However, they will depart government supervision a changed company. It is clear that the status-quo ways of doing business simply do not work. The Sarzonian business world can not operate under two sets of rules: One for the Portland Iron Works and one for every other company. The Portland Iron Works must be accountable to the Sarzonian people and to corporate law. It must remain fiscally responsible as it has been for a number of years.

Sarzo would not say whether he would sign either of the bills working through Parliament designed to address the ills laid bare by the past several days. However, Sarzo said the Corporate Accountability Act "goes at least part of the way toward the sort of parity we need to ensure in our economy for the future." He said the Economic Recovery Act proposed by Jacobi "may result in short-term financial difficulty, but we are seeking long-term solutions rather than an economic band aid."

Vice President for Business and Commerce Janis Hedge reacted positively to the prospect of $250 billion Sarzonian in aid being considered by the Isselmere-Nielander government.

"We thank His Majesty for making the request of his Parliament and his Eschequer," Hedge said. "Such an offer would be a tremendous show of solidarity by a country who has traditionally been among our greatest friends." She also noted the Novacom offer of assistance as another sign that "there is light at the end of the tunnel."

"In a time of fiscal crisis, they are showing an intent to restore consumer confidence in the economy," Lieutenant President Nicole Lewis said. "That is a positive in and of itself."

Speculation is centering on the possibility that Sarzo may sign an executive order dissolving the Portland Iron Works into the four companies that comprise the conglomerate. That would mean four companies, the Portland Iron Works, Avalon Aerospace Corporation, Incorporated Ordnance Company, and Space Union National Aerospace Corporation Storefront, would emerge from the executive order. However, a source close to Sarzo said he wants to wait and see before taking "drastic measures."

"If the Economic Recovery Act passes both houses of Parliament, [Sarzo] won't have to sign that order," the source said on condition of anonymity. "He's hoping that the unusual bedfellows pushing that legislation can get a multi-partisan piece of legislation through."

Indeed, Senator Brian Delgado (Conservative-Cooke) and House Speaker Connie Jacobi (Progressive-Somerset) have both made speeches calling for their bills to clear Parliament, including rare endorsements of each other's legislation.

"The fact that we can both stand here as ideological opposites and both say these measures are what we need speaks volumes about what our goals are," Delgado said. "And our goals are to restore consumer confidence in the Incorporated States of Sarzonia and to bring our nation out of this recession."

From Capital Cities Times (Online Edition)


http://img.photobucket.com/albums/v114/hamptonshire/NS%20Pictures/rosecrans.jpg
Lord Rosecrans appeals for calm and unity in the rapidly
deteriorating crisis. He is said to be interested in going to
Sarzonia to personally help rebuild foreign confidence in
the Incorporated States.


Lord Protector Reaches Out


Lord Rosecrans called for calm from both investors and ordinary citizens over the "drastically escalating crisis before us". Reacting to news about riots in Sarzonia the Lord Protector made his first primetime address to the nation (to be aired later in Sarzonia).

Quotes from the address selected by the Capital Cities Times:

"While it is paramount that we protect ourselves and our economies, we must not forget that the Sarzonians are the ones that are feeling the tangible effects of this so-called recession. For every krone, douro and dollar pulled out of Sarzonia there is that much less that is unavailable to go into the hands of the hardworking people of that fine nation..."

"I directed the Royal Treasury to release one hundred billion kroner ($200 billion USD) in order to purchase Sarzonian Government and corporate bonds. Earlier this mourning the Finance Ministry placed orders for ninety billion kroner worth of Sarzonian Government Bonds and Treasury Notes and ten billion kroner worth of various Corporate Bonds. I want the world to note, without any confusion, that the Federal Government of the Grand Duchy of Hamptonshire has full confidence in the ability of the Sarzonian Government to reform itself and, in due time, come out of this recession stronger than before."

"To show that I truly believe in the Sarzonian economy and that I am ready to stand shoulder to shoulder with our Sarzonian friends, I have personally purchased fifty million kroner in various Sarzonian securities over the past twenty-four hours. This is money from my own personal accounts. Make no mistake about it, I have full faith in a long term recovery."

"Sarzonians young and old, poor and rich, working and retired are going to have to make some very difficult decision over the coming years. This crisis was caused because of the inherent instability of the Sarzonian economy. The Sarzonian market must diversify and liberalize. Unfortunately the path to reform will not be smooth, there will be many hardships and some of the welfare policies so beloved by the Sarzonian people may have to be curtailed or otherwise modernized. But whatever sacrifices are made by the current generation will pay dividends for the future generations of Sarzonians. I know the Sarzonian people, when they are motivated by a common interest there is no force in this world that can stop them. What I ask now is that Sarzonians stop looking to others to blame and insult and start looking to themselves, and to all of us, for solutions."

The Lord Protector's speech came after Director-General Cirmos-Varcolik called for a meeting of central bankers in Seaburg. As of publishing, the Governments of Azazia and Isselmere-Nieland have announced their intention to send their finance chiefs to the city. It is expected that the Pacitalians and Praetonians will soon accept the offer as well. Senior sources within the Lord Protector's Office have told CCT that once Lord Rosecrans appoints the Triumvirate Council, expected within the next two days, he intends to travel to Sarzonia in order to personally allay the fears of Sarzonians and present methods for assistance.

From the 'Staas Courant', an official source for non-propaganda and trustworthy news items.

Staas Courant
[State Newspaper]

For immediate release

Ladies and gentlemen of the international press, last annum’s mining figures have came in a month, in due time as usual. The following figures have shown the Guffingfordian mining sector is growing steadily, to ensure a stable export rate of copper, zinc, tungsten and silver. The only problem child of this promising family is platinum, which, according to the statistics we have here, has been falling in production for the past 6 years. This decease occurs in the mining sectors 74-74b, 74-74c and 75-74h. Primarily the sectors around the mining city Änglenbach.

The following message has been confirmed by the Ministry of State, and the content of this has not been approved by Truth Media, due to the highly important information discussed here. The investment companies, both state owned and private who have been pouring money in platinum extraction as a means to construct fuel cells for hydrogen cars, this is very unfortunate news. Due to the falling amount of platinum extracted from the earths crust, we were unable to reach the quota’s set out in January 2004.

Though not confirmed, and still rumors, but many insiders claim Sarzonia invested large sums of their dollars into a very similar platinum project for their own hydrogen powered vehicles. After serious consideration, we decided not to lower the quota’s already set, and carefully awaited how the market would respond should this news ever hit the official mainstream media. We did not lower them because the expectations remained the same, yet demand increased and offer became less. This proved to be a very valuable decision, considering none of these numbers or forecasts for that matter have been inflated in any way.

On another note, today the First National Banking & Trust, First City Banking & Trust, C. Birch, Crisp & Co, Wellis & Rothschild Mutual and the Hoogenbosch-Redmound Banking Corporation decided collectively to start selling off Sarzonian government securities, dollar holdings and other Sarzonian monetary assets. Though no official explanation has been given, but many bankers fear a sudden sharp drop of the Sarzonian dollar, and inflation will increase dramatically, some even dare to compare it to the Weimar Republic’s hyperinflation in 1923. As many other nations have decided to sell off the Sarzonian dollar, Guffingford was reluctant at first, but decided to follow suit after market rumors about Preaton and their reputed near-term sale of the Sarzonian dollar.

The total amount of Sarzonian monetary holdings in Guffingford range around 300 to 350 billion $.

From the Daurmont World-Times

Anguist in arms as Parliament spends
Gillian Barnsley, legislative correspondent
Mithesburgh, ANGUIST - Members of the Partei Cenedlaedhol an hÓenghu (Anguistian National Party) shut down the Regional Assembly today to protest the continued closure of the Andvari Shipyards and the United Kingdom's proposed offer of over 250,000 million lethses (IN£; SZ$250,000 million) to the Sarzonian government to stave off the threat of dangerous recession.

The Rt. Hon. Brude máp Dérile greeted the protestors with the news the Royal Navy was ordering new vessels from those very Shipyards, only to be met by thrown foodstuffs and books. The small crowd was swiftly dispersed by the local constabulary.

Ardath uí-Banpó, leader of the Opposition Liberal Democrats, decried the crowd's behaviour as "appalling and reprehensible." He continued, "There are proper channels to address one's grievances; assaulting the His Majesty's Representative is not one of them." Mr uí-Banpó refused to comment on the King's involvement in the Union government's plan.

Upon the King's request, Parliament has tabled and swiftly passed a resolution to grant the Sarzonian government IN£130,000 million whilst the Royal Treasury and His Majesty's Treasury Office (HMTO) intend to secure a further IN£130,000 million in Sarzonian currency and government securities released by various governments. The Governors of the Union Bank of Isselmere-Nieland (UBIN) have announced they will follow suit, bringing the possible total investment to IN£390,000 million (approximately SZ$360,000 million).

The Sarzonian recession isn't the only expenditure that sailed through Parliament today, however, as an order for two new large vessels was placed with the RSIN, placing the UKIN's budget in the red for the first time in 20 years.

From PNN.pc

https://secure.finishlinestudios.com/v3/clients/magnumradiogroup_net/files/common/H2OTOGO_RELIEF_FUND/waterkeepscomingin1.jpg
Sarzonian volunteers unload pallets of
bottled water from Pacitalia after Cafigola
SpA donated five million 50cl bottles to
needy Sarzonians in the Portland area.

Pacitalian bottled water shipment arrives; residents thankful


by Alberto Quintanilla, Portland

One day after riots in the Sarzonian capital that burned effigies of PTIC president Francesco Porantabano, a shipment of five million half-litre bottles of water from Pacitalian beverage producer Cafigola SpA arrived in Portland, Sarzonia's economic heart, where hundreds of residents are suffering after being laid off from Portland Iron Works following Black Monday.

Many of these residents were lower-end employees in the company and now cannot afford basic utilities. At least 3,000 of these residents have had their cable television, natural gas and water supplies shut off by the municipal government in Portland because they were unable to pay their bills. However, today, Cafigola's 2,5 million L shipment of pure drinking water was widely welcomed by the people who needed it most.

Cafigola CEO Alessandra Marona said the company was "disturbed by the economic suffering of Sarzonians and wanted to do something to help. We thought this was the best capacity within which we could assist the Sarzonian people during their time of need," Marona said. "It makes me quite happy to see all these people be so relieved and grateful."

She says that Cafigola was advised not to carry through with the shipment by the Pacitalian Ministry of Foreign and Diplomatic Affairs after Sarzonian protesters showed maximum hostility to Pacitalian political figures in Thursday afternoon riots. Marona said senior staff "feared for our safety" and offered to have the military send the shipment. However, Cafigola executives responded in kind, saying Portland was a much different city than Woodstock and that they were "determined to see the shipment get through".

Marona also said that Cafigola plans to send equal sized shipments to Nicksia, Woodstock and Tacoma, "as long as we had the Sarzonian government's assurance we are continuously welcome to do so". She added that "if the Sarzonian government wished us to send more shipments to any areas of concern other than the cities we have already listed, we would gladly do that".

Portland residents that turned up at the supermarket to receive a 24-bottle pallet of water appeared enormously relieved and grateful for Cafigola's shipment.

"I can't even describe it," one customer who wished not to be named, and was on the verge of tears, said. "To know that someone out there... cares about your wellbeing, and wants to help you in such a simple way... but what they give you still means a lot... it's just wonderful. Really fantastic."

Cafigola volunteers shared candy and also offered hot dogs and fries to the customers for nearly three hours. Many of the volunteers even offered a "free hug service".

This is Cafigola's second major participation in international aid. Early last year Cafigola sent 28 million bottles of water to Hiroshiko after the Pacitalian forces defeated the country in a brief war.

The Parliamentarian
(Page 1 - Sarzonia tumbles into civil dissent as Praetonia dumps the Dollar)

Crowds of angry Sarzonians have found in the Pacitalian embassy a target upon which they can vent their anger at their dire economic situation as Pacitalian and Sarzonian security forces clash with protestors whilst crowds burn effigies of Pacitalian central bankers in the streets. At the same time, the Treasury has decided to sell all of Praetonia's SZ$ reserves as the price is set to plummet. Making a brief statement outside the Treasury last night, the Chancellor of the Exchequer said that 'This wasnt a move we wanted to make, but it was inevitable and foreign governments selling their currency reserves have forced our hand.'

Currency worth several hundred billion Praefelis was dumped last night and reinvested in more stable currencies such as the Hamptonian Kroner, the Pacitalian Douro and the Neilander Pound. The CPI's Chief Financial Advisor voiced worries of 'massive inflation' caused by 'a vicious cycle of sale and inflation, followed by further sales and further inflation.' Adding that 'The downward spiral may be unstoppable in the short term,' for the first time the CPI has declared that 'We may no longer be looking at a recession. With the Sarzonian stock market and currency crashing, and foreign investor confidence utterly destroyed, we could well be looking at a depression.'

Sarzonian Government plans to split up the Portland Iron Works in a similar manner to the break-up of Imperial Praetonian Ordnance by the Liberal-Tory Party have been met with mixed reactions from the CPI. A spokesman for the Confederation said that 'Although this is the right sentiment, history has shown that larger companies are more robust than smaller ones. When IPO was split up, its finances were very good. Im not sure how well the products of PIW split-up would survive with their finances as they are.'

In an attempt to help the ailing Portland Iron Works, Imperial Oil & Gas and Imperial Atomworks Directors have issued a joint proposal whereby the two companies would purchase the Portland Iron Works's engine-making branch under a joint subsidiary to be called Imperial & Sarzonian Engineworks.

'The Portland Iron Works are going through great difficulties right now. This move would not only take one major worry off their hands, but it would also signify that the Sarzonian market is truly open to foreign investment and purchases,' stated a joint spokesman yesterday evening. The companies were, however, quick to promise 'extremely favourable prices' for the Portland Iron Works in purchasing engines from the new company, no Sarzonian job losses and the ability for the Portland Iron Works to buy the company back at 'an appropriate price' when their finances are back in order.

The Imperial Government backed the move, stating that 'This is the kind of situation where direct aid just disappears. A collapsing economy wracked by inflation will simply eat money like a black hole with no appreciable returns. What we need is Praetonian investment in Sarzonian companies, and Praetonian business creating jobs in Sarzonia. That is a forumla for success.' The Government plans to reduce regulation and make it much easier for Praetonian business to trade with and in Sarzonia, and is encouraging the Sarzonian government to follow suit.

[OOC: OK, I'm a bit late to the party, as it were, so some of this may seem outdated, but I'll attempt to get a more relevant article up sometime soon.]

HAL500 takes hit at news of Sarzonian market crash
Consolidated Arms comes under fire as "Halberdgardia's PIW-in-waiting"

WASHINGTON, D.C. -- The HAL500 Stock Exchange saw its greatest loss in several years yesterday as news of worsening economic fortunes in Sarzonia hit the trading floors and Halberdgardian officials laid scathing accusations and threatened new legislation against the country's premier arms manufacturing firm.

After news that Sarzonian defense conglomerate Portland Iron Works (PIW) had been effectively nationalized by directive of President Mark Sarzo and Praetonian, Pacitalian, and Hamptonian firms were dumping Sarzonian assets as fast as possible in an effort to soften the inevitable blow to their own economies, the HAL500 plummeted, with investors selling off shares in Sarzonian corporations, including the ill-fated PIW, by the millions.

The mass sell-offs eventually lurched to a halt at the end of the day, with the HAL500 finishing at 9,943.21 points, down a staggering 257.74 points. The loss was easily the greatest in more than a decade, seriously shaking investor and consumer confidence alike.

The Sarzonian downturn, while not predicted to affect Halberdgardian markets as significantly as Sarzonian neighbors, will still negatively impact trade, as trade with Sarzonia is estimated to be at 7% of the Imperium's imports. Analysts say exports are likely to take a similar hit.

The possibility of a break-up of PIW has raised concerns about the Imperium's largest, and still rapidly-growing, arms manufacturer, Consolidated Arms, Inc. The issue has even made its way to the floor of the Senate itself.

"We cannot sit idly by and watch as Consolidated Arms grows into a conglomerate that threatens to consume our GDP like PIW," said Senator Gordon Sutorius (Liberal, W.H.) yesterday in a passionate speech on the Senate floor calling for legislation similar to Sarzonia's proposed Corporate Accountability Act. "Something must be done about Halberdgardia's PIW-in-waiting."

Political analysts dismissed the move as mere posturing.

"Sutorius has taken some serious hits since the presidential election, and these latest remarks from him aren't exactly going to help," analyst Andrew Bradshaw said. "Asking for a Halberdgardian equivalent of the [Corporate Accountability Act] from the Conservatives is like asking a mother to give up her only child to the government for brainwashing. It's just not going to happen."

The Supreme Court, due to the retirement of several judges from the Kanos administration and the confirmation of Conservative-leaning judges, has repeatedly ruled in favor of big business in the past, and some analysts have speculated that they could possibly strike down any counterpart to the Corporate Accountability Act, should it somehow make its way past the largely Conservative Senate.

A source close to the White House said that the possibility of increased investment and financial aid to the Incorporated Government was "strong." President Kil's office could not be reached for comment.

From Daurmont's Financial Times

PIW: Beware the crashing giant

Daurmont, ISSELMERE - When word came out on Portland Iron Works' bid for the Manston Naval Yards, many in Daurmont's Bírsa were astonished. As the scandal deepened and Adm. Barbara Tucker's position as head of the massive conglomerate became increasingly desperate, amazement rapidly became panic. Announcing what amounted to a loss of approximately one billion* Sarzonian dollars (SZ$), foreign markets immediately began dumping their Sarzonian currency reserves and government securities as well as corporate bonds fearing, and consequently increasing the likelihood of a massive depression.

Among those nations experiencing this switch from the safe "Buy Sarzonian" investments of the past were several of the Incorporated States' strongest allies - Pacitalia, Hamptonshire, and Praetonia - as well as two nations with which Sarzonia has in the past shared animosities, Azazia and Guffingford. Margrethe Cirmos-Varcolik, the recently appointed head of Hamptonshire's Royal Central Bank and Royal Treasury, recommended a summit for the affected nations, including Isselmere-Nieland, to devise a scheme to save the Sarzonian economy.

Faced with the economic ruin one of the United Kingdom's closest friends and competitors, His Majesty and Parliament jointly sought to reverse the bearish trend by purchasing 400,000 lethses (IN£) worth of SZ$. Initially, the King's gambit seemed to have worked. Lord Rosecrans, Lord Protector of Hamptonshire, released 100,000 Hamptonian kroner (about IN£130,000) from the Royal Treasury to invest in Sarzonian government and corporate securities. The recent decision by the Imperial Praetonian Government to sell all of its Sarzonian dollar reserves will likely leave His Majesty's plan at nought.

Ms uí-Nechtaen [Minister of Finance] admitted in Parliament that the situation looked untenable, but that she would again recommend to the Governors of the Union Bank to bolster the Sarzonian dollar. Bertram Creighley-Muilsen, Governor-General of the Union Bank, has yet to respond.

--Stuart Morgan

*1 billion (Isselmere-Nieland) = 1 trillion (US)

From La Repubblica Oggia and the Seaburg Independent (Online Editions)



http://batr.org/sitebuildercontent/sitebuilderpictures/currency.gif
The treasuries of Hamptonshire and Pacitalia
were forced to sell of their remaining Sarzonian currency
reserves after a round of similar sell offs over the past
twenty-four hours

Hamptonshire and Pacitalia dump Sarzonian Dollar


By Alessandro Spinodore, Mandragora, and Jessica Kelly, Weslyn
With the Sarzonian dollar threatening to plummet as low as SZ$10 : Đ1/K1, the Royal Treasury and Central National Bank of Pacitalia have mutually agreed, in response to the Praetonian move, to sell off their remaining Sarzonian dollar reserves. The move was made after intense consultations between the two national reserve bodies.

The final sell off is the latest of a long string of efforts to prevent the collapse of the Sarzonian economy and currency from impacting Hamptonshire and Pacitalia. The Royal Treasury officially projected that without serious government intervention the rate of inflation in Sarzonia may approach as much as eighty-five percent within six months.

This move, seeing the Central National Bank of Pacitalia sell off 418.5 billion SZ$ and the Royal Treasury sell off 1.2 trillion SZ$, while radical has been hailed as "necessary and proper" by economic analysts in both countries. When asked if the sell off is damaging the efforts being pushed by Lord Rosecrans, Director-General Cirmos-Varcolik simply said "We've pumped a hundred billion kroner into Sarzonia with probably untold billions more going in. Right now I'm taking the steps necessary to protect our economy."

The sell off has also been celebrated as a sign that a possible future unity of purpose and policy between the financial institutions of Hamptonshire and Pacitalia may be closer than expected. The announcement that Agustinate of Finance Sebastiano Sigurimasso has decided to participate in the Seaburg Conference was also welcomed. It has yet to be seen how Sarzonian political and financial institutions will respond to this latest news.

Space Union Offers a Helping Hand to Ally In Need!

Ayadi, Space Union - As Space Union's close ally, Sarzonia, plunges further into a recession, Federate Satpul Singh has announced that the Space Union government will not leave its ally in darkness and is willing to offer a helping hand.

The Federate announced earlier today that he would offer any help that he could to Sarzonia and its people in the form of soft and hard aid. "I will not leave an ally in need in darkness. Many nations have left Sarzonia, but we will stand with them," said Satpul in a conference earlier. He has noted that Space Union's Chamber of Electorates approved a Emergency Aid of $240 billion for Sarzonia.

The Federate has also announced that he will be going to Seaburg for a conference with top economist of other nations such as Pacitalia, Azazia, Hamptonshire, Praetonia, and others. "We believe that helping Sarzonia is an important goal, but at the same time we must protect our own people, no matter what." The Federate is expected to leave within days, though, an exact day has yet to be set.

Meanwhile, the Monetary Reserve of Space Union has begun to sell of Sarzonian Dollars, following suit other nations, in order to limit its affect on the economy. "Although we wish to help, doing this will be better for both of our nations," said the Chairman of the Reserve.

But in a stern voice of power, the Federate has warned Mike Sarz, "I strongly disagree with nationalizing Portland Iron Works. It is Space Union policy to not allow foreign governments to have any say in our economy, yet the Sarzonian government now has that." To follow this, he commented, "if Mike does not get rid of this nationalized order, Space Union's government will take action to seperate SUNACS from PIW, though, I wish it not to come to this."

http://i35.photobucket.com/albums/d197/Pacitalia/coatofarms_Pacitalia.jpg
Transcript of Legislative Session, Constazione Ampoliticato Federali
Democratic Capitalist Republic of Pacitalia
Session ID: R281-73E | Date: 10th February, 2006

This transcript is available online at http://www.caf.gov.pc/archives/sessions/showpage.aspx?id=02102006qp


SPEAKER OF THE CONSTAZIONE, THE HONOURABLE SIGNORA PAOLA MACCHIANESTA
This session is officially called to order. Please rise for the entrance of The Right Honourable Prime Minister of the Democratic Capitalist Republic of Pacitalia, Mr Constantino Sorantanali, and the Leader of the Honourable Opposition to the Pacitalian Government, Mr Fernando Chiovitti.

--Sorantanali and Chiovitti enter, shake hands and take their seats--

SIGNORA SPEAKER
I hereby address this parliament as in session. The first order on today's list of legislations is the primary vote on Bill M-192 L30 S838.4 2/2006, titled "Marazulan Marine Security Package", and proposed by the honourable Agustinate of National Defence, Signore Admirali Moreno-Cruz. The honourable Agustinate will now make his closing remarks on the legislation.

THE HONOURABLE AGUSTINATE OF NATIONAL DEFENCE, ADMIRAL RODRIGO MORENO-CRUZ (FPD, RAGANZO-MARGONI)
Graziela, Signora Speaker. Ladies and gentlemen, my security package is only a solid start to rectifying a growing problem with our military. We have become regretfully complacent, having fought three wars successfully and rather unintentionally transforming into one of the most unfortunately docile military superpowers on this Earth as our talented and well-trained and equipped troops sit there doing absolutely nothing. Our military forces are slowly becoming worse equipped as our technology becomes outdated. How will they defend our sovereign territories against possible attacks, or defend freedom or liberty in places that seek to challenge it?

--PSC and Green members begin catcalling--

Signora Speaker, it would be an embarrassment to our place as a keystone in the international community to ignore the fact that we must begin reevaluating the technology our forces use. Updated and top of the line equipment will ensure better odds of victory in either an offensive or defensive situation. It would certainly be an embarrassment for any future Pacitalian forces to be defeated in combat because the government has not exercised its responsibility to provide properly for our troops.

Signora Speaker, when was it acceptable for the Pacitalian Naval Forces to use satellites put into orbit twenty-eight years ago when these satellites are not even capable of accepting and processing commands made by ships not even an eighth of that in age?

My new spending package, honourable ladies and gentlemen, will provide itself as the catalyst for future military spending. Four new submarines will greatly increase Foringanan naval security, as will updated sensory and radar technology. Spending this conservative amount of money on one branch of the armed forces, and mainly on one coast, is just the tip of the iceberg. This government will be working hard over the next few months to ensure our defences are up to speed and on par with that of our friends and allies to solidify our international defence protocols in the long term. I implore you all to pass this naval spending package. It is truly in the best interest of the country to do so.

SIGNORA SPEAKER
Thank you, Agustinate of National Defence. The honourable National Defence Critic of the Official Opposition Party will now make a rebuttal.

MARIO ANZANOGORI, NATIONAL DEFENCE CRITIC (PSC, POMENIGIURA-SOUTHEAST)
Graziela, Signora Speaker. Ladies and gentlemen, the fact that this naval spending package is coming from a decorated naval admiral should not deceive you into ratifying this bill and sending it to the Senatoro. In fact, if the honourable Agustinate did not have his status as an admiral I would automatically knock this down as another ultraconservative proposition from a man that is absolutely out of touch with our defensive needs.

--Boos, hisses and shouts from the FPD and PdT--

Signora Speaker, no man that was responsible for ordering naval assaults on innocent Hiroshikans should be even given ten seconds to flay the intelligent minds of this chamber with his legislative indiscretions! It is absolutely pre--

--Louder booing and hissing, catcalls from the FPD at the mention of Hiroshiko--

It is absolutely preposterous that the Agustinate is telling us we need to spend more money on national defence! Where is the money for the contract to AeroNexus SpA to build 628 new MR-380 fighter jets? Where is the money for the contract to Assultaterra for the 519 new MBT tanks? These were all projects promised by the government during the campaign and it is clearly not a priority for a government that has lost its moral conscience, frittering away money into useless contingencies to departments that already operate perfectly well! I urge the CAF to strike down this legislation for good!

--Deafening booing from the FPD--

SIGNORA SPEAKER
Silence, please. Thank you, honourable critic - we will now call the bill to order. I remind the chamber that a legislative document pertaining to matters of national defence or security require 55 percent, not 50.1, to pass. All those in favour of ratifying Bill M-192, please vote now.

--FPD and PdT members press the green button on their desks, along with some of the NPA and PSC, and two Greens--

All votes in favour are in. Now, all those against the ratification of M-192, please vote.

--All the rest of the CAF votes--

In favour: 397. Against: 242. Abstained: 8. There are 61.4 percent in favour of this bill, thus by law it has cleared the CAF and will now go to the Senatoro.

--Applause and cheers from the FPD--

Our next order of business is a new legislation, Bill I-878b, titled "Sarzonian Economic Assistance Contingency Plan". The bill has been introduced by the honourable Agustinate of Commerce and Trade, Félix Almendralejo. Each member has been provided with a summary sheet of the legislation, and may request a full print of the legislation if they so wish. Mr Almendralejo will now stand and make opening remarks to commence the floor debate on the bill.

THE HONOURABLE AGUSTINATE OF COMMERCE AND TRADE, FÉLIX ALMENDRALEJO (FPD, CANUZORITA-WESTERN PEAKS)
Signora Speaker, thank you. It is my pleasure to introduce to the Constazione a package to help the Incorporated States of Sarzonia emerge from the recession. While we, as one nation, cannot do that alone, our new package will make a significant portion of foreign economic aid to Sarzonia in the years to come and will help solidify our route to restoring relations with the Incorporated States.

SIGNORA SPEAKER
Mr Cansomati.

ENZO CANSOMATI (PSC, AMARENTINA-NORUESTA)
For shame, honourable Agustinate! Do you mean to imply that this aid package is just a backdoor attempt at restoring relations? This is a scandal!

--Cheering from the PSC--

SIGNORA SPEAKER
Honourable Agustinate, your rebuttal.

FÉLIX ALMENDRALEJO
Any attempt, honourable member of the Opposition, at restoring relations will go through the [Ministry of Foreign and Diplomatic Affairs] first and foremost. Our intentions are purely economic because that is our jurisdiction, sir. I would appreciate a little more foresight on your part in the future, and certainly more cooperation in assisting our dear friends in Sarzonia. Signora Speaker, the true scandal here is the ignorance of the Opposition in international economics and diplomacy!

--Catcalling from the PSC, cheering from the FPD--

Now, as I was saying, Signora Speaker, our aid package is simply a component of a multilateral attempt to pull the Incorporated States out of the depression they are ultimately facing without proper economic oversight and management. Hamptonshire, Isselmere-Nieland, Praetonia and Azazia are all chomping at the bit to help with a Sarzonian aid package, and this is those respective states' legislative counterpart. This government's legislation will call for at least fifty billion doura to be spent over the next 24 months on various economic programmes pertaining to Sarzonian restructuring. The legislation scatters a total funding allocation of one hundred and seventy five billion doura over a five-year period.

Our package also includes a reserved amount of funding for humanitarian aid such as blankets, bottled water, non-perishable food and medical supplies. However, we do not expect the situation in Sarzonia will deteriorate that much. We are merely bringing the option of reserving that funding if such a crisis does occur. This package legislation ensures Pacitalian commitments to our friends in Sarzonia and will show them all that we are genuinely seeking to aid them in their time of crisis.

SIGNORA SPEAKER
Questions from the floor? Honourable Leader of the Opposition.

THE HONOURABLE FERNANDO CHIOVITTI, LEADER OF THE PACITALIAN SOCIAL COALITION
Signora Speaker, while we support an attempt to resuscitate the Sarzonian economy wholeheartedly, the spending package is much too liberal. We should be focusing on social aid to these people, not economic aid. We must certainly encourage investment by Pacitalians in Sarzonian companies and the creation of jobs there, but the government's responsibility in this situation is to ensure the people get what they need on top of getting a job! That, Signora Speaker, is paramount! That is necessary and it is going to become a massive failure of this government if they do not make a stand socially!!

--PSC and Greens loudly cheer while FPD boos--

SIGNORA SPEAKER
The honourable Signore Constantakis.

THE HONOURABLE NEROS CONSTANTAKIS, LEADER OF THE GREEN PARTY OF PACITALIA
Signora Speaker, I am reminded very easily of how damaging to the environment mass re-economisation in the Incorporated States will be. No environment can handle such massive industrialisation, and the attempt to reindustrialise Sarzonia after this trouble will be extreme on the scale. And why not make an effort to provide green housing and green electricity? The government must take environmental and green economic factors into account when dealing with economic policy!

--Heavy cheering from the Greens, booing from the PdT--

SIGNORA SPEAKER
The honourable Signora Speranza.

THE HONOURABLE ARIA SPERANZA, LEADER OF THE PACITALIAN NON-PARTISAN ASSOCIATION
Signora Speaker, this government cannot afford to engage in foolish partisan hackery at this time! We must find a solution that benefits every Sarzonian and takes into account the views of everyone!

--cheers and applause from the NPA--

SIGNORA SPEAKER
The honourable Signore Quirinamo.

THE HONOURABLE MARCO QUIRINAMO, LEADER OF THE PARTIA DI TRADITIONALE
Signora Speaker, I think the real question here is: why are we even helping the Sarzonians?

--loud cheers from the PdT, Quirinamo grins--

I mean, I am truly sorry, but I, firstly, do not see how blowing billions of doura on people that hate our guts is fiscally responsible...

--laughs from most of the chamber--

...and secondly, I cannot see how the government can justify spending that sort of money on a nation that turned its back on us long ago. The fact remains that the Sarzonian government refuses to accept any blame for the breakage in relations and continues to blame poor old Francesco Porantabano, a man who was just doing his job, for this mess. I ask you all - do we really have the ability to justify wasting our money on that kind of nation? The best thing we can do is show them the door to hell and hope they have a nice time.

--more laughs, cheers from the PdT and more right-wing FPD members--

I am afraid the Sarzonians stopped deserving our help long ago.

--heavy applause from the PdT--

SIGNORA SPEAKER
And finally, Mr Prime Minister.

THE RIGHT HONOURABLE CONSTANTINO SORANTANALI, PRIME MINISTER OF PACITALIA
The fact remains, ladies and gentlemen, that the Sarzonians may not like to admit they need our help, but they do. And I would hope Mr Quirinamo became a little more understanding to the Sarzonian plight. Certainly they did not help us in our recession in the 1980s but their nation did not exist. A two year old nation does not need to be mollycoddled but the lessons they are learning now will humble them greatly. Regardless of that, the Sarzonian people are still counting on foreign powers to help where their own government cannot. And, ladies and gentlemen, that is why we are in front of you today with this aid package. I urge you to look carefully over it tonight with your caucuses and staffers - this is certainly not groundbreaking, but it is historical, and thus, we must tread cautiously but optimistically.

I hope you all have not forgotten, above all, that Pacitalia and Sarzonia are still friends. Let us take the moral high ground, forget our differences with them even if they may not return the favour, and help them in their time of despair.

SIGNORA SPEAKER
Thank you, ladies and gentlemen. That draws a close to today's debate. Prime ministerial question period will begin at five-fifteen. This session is now closed. You are dismissed.

--gavel bangs--

Partial Transcript from the Afternoon Session of
The Right Honourable The Lords Spiritual and Temporal of the United Kingdom of Azazia, Juristan, and the Indian Islands in Parliament Assembled

Date: 10-February-2006

Marquess of Salisbury: My Lords, it has been put to my attention that our friend in Pacitalia has put forth a proposal for an economic stimulus and recovery package to alleviate the ills of the Sarzonian people in their hours of tribulation.

Low murmur of discontent

And my noble friends, we are all aware of my previously established position wishing to offer the hand of the United Kingdom to the Sarzonian people.

Slightly louder murmuring of discontent

Yesterday the Chancellor of the Exchequer found himself the unfair recipient of remarks stemming from the speaker’s complete misunderstanding of not only the situation, but of the United Kingdom as a whole. And while my friend’s initial remarks were rather cumbersome and unwieldy in nature, the Rt. Hon. Gentleman from Essington managed to hit at a diamond of truth by slicing down a forest of facades; that is that certain governments are built upon hypocrisy and attack their enemies through the most specious of arguments – and remain unchallenged.

Rancourous applause and cheering

The civilisation that has blessed this archipelago counts the English language amongst its most valued gifts and in our decades of isolation and through our kilometers of separation we have become true masters of its use, save perhaps a few of my noble friends across the way.

Laughter

And yet the incident I speak of wounds me deeply because we see that the leaders of foreign governments and their junior grade lieutenants are able to grasp neither our beautiful language nor the concept of time – or at least the difference between breakfast and supper.

Laughter

In this world we must know the thousands of faces of various heads of state. Although I must confess that at times I find it most difficult; especially when certain heads of state have their likeness on both sides of their currency. And yet one face is unrecognizable from the other.

The Rt. Hon. Gentleman from Essington pointed out an economic hypocrisy; and the fact of the matter is that he came under attack because the subject of his admittedly pointed criticism cared not to hear the truth. Well here is another truth, my Lords, one cannot call themselves a democracy, one cannot call themselves a defender of democracy, one cannot even call themselves a defender of human rights if the people are not given the chance to routinely and regularly vote upon their chief executives.

The whole of the House of Lords stands in applause

Lord Chancellor: We shall have order in this House.

Bangs gavel several times until members quiet

Marquess of Salisbury: Then again, my Lords, I suppose that in the 94 years of our independence it is only natural we should have a better understanding of democracy than those nations who are but toddlers.

Laughter

Lord Chancellor bangs the gavel once more until order is restored

However, my noble friends, I come to you today to explain why we cannot follow so closely the footsteps of the most honourable Pacitalian government and how it is that the United Kingdom cannot give an economic aid package to the Sarzonian government.

While I am certain that the people of the United Kingdom harbour no malice against the ordinary Sarzonian, this government cannot finance a government that has proven to the international community it has not the wherewithal to properly manage not only its economy but now not even their economic recovery. For an avowedly capitalist nation a nation guided by the free-market and laissez-faire economics to nationalize a corporation that provides nearly a quarter of the nation’s GDP only proves that the current administration of Sarzonia cannot be entrusted with the capital of private UK investors.

And so given said circumstances the United Kingdom shall be limiting its aid to the Sarzonian people to that which I have henceforth established, namely opening the borders to economic refugees. Indeed, I wish the Sarzonian people well. However, until I see, as an economist and as a Prime Minister, the necessary steps to ensure that UK capital would not be squandered I cannot authorise and I will not propose the release of any funds from His Majesty’s Treasury to flow into Sarzonia.

The House of Lords once more stands in loud cheering

My Lords, we need not cheer at this hour for we should be doing more to help those in need. However, my first obligation and responsibility is to that of the safety and security of the people of the United Kingdom – and any aid package to Sarzonia would cause me to be in breach of that obligation.

Lord Chancellor, I yield the floor.

End Transcript

BLACK FRIDAY IN GUFFINGFORD, from Hoogenbosch Finansieel:


Hoogenbosch Stock Exchange drops like a stone after mass Praetonian sales of "safe" Sarzonian securities

Most significant drop since '87: HSE down 11.32% to 5289 points. Insiders say: sales of Sarzonian security will harm Guffingford too - we have been relying too much on foreign assets, a pretense of our ill-gotten financial security - silver and platinum are on the rise

Hoogenbosch, Friday February 10th -- After an initial prosperous start of the last business day of this week, unrest began to master itself of the traders on the HSE, causing large sales of foreign stock, bonds and options. The repo market took also major hits, with a spike in sales of repos during the times when the sales turned to panic, and many traders hastened to sell their remaining Sarzonian holdings, in every shape and form as they come and go.

The Guffingfordian administration has long denied it, but now Mr. Rudyard Sweet our Minister of Financial Affairs confirmed it: "Long have we been buying Sarzonian currency and other securities in case our own economy went bust, and we anticipated ours would go first - somehow. Though this does not show us having a great deal of confidence in our own, but we have to admit we are deeply troubles and surprised how these events turn out. Because of Hamptonshire's kronor and Pacitalia's douro gaining value to the SZ$, we cannot stay behind and let loose of the fixed gold/currency ratio between us and Sarzonia." After Mr. Sweets announcement, the exchange rate between the ÐG and SZ$ took a nose dive, dropping to historical depths, following Pacitalia and Hamptonshire.

In layman's terms, Mr. Sweet says this situation cannot be sustained when only Guffingford retains the pre-recession currency rate between Guffingford and Sarzonia. Mr. Sweet's comments calmed the rally for a while, but after good two hours, the panic sales resumed, even worse than before. Master Banker of FNB&T, tried his best to calm everyone down, and signed a decree to close down the HSE on 4PM, instead of 5:30PM west pacific standard time.

"What people do not understand is the following: foreign investment in Sarzonia does not pay off. How can a recession, a cancerous economy such as Sarzonia be pumped up to a healthy state when nations continue to pour financial means into the country. None of their citizens can do anything with kronors, guldens, reichsmarks or anything you throw at them. When you give people directly or indirectly this money, the demand for SZ$ will grow even more rapidly, especially when you consider the insanity of those amounts. When nearly a trillion SZ$ has been released by governments around the world - not counting all other Sarzonian assets - and then nations send financial aid, you need to exchange them to SZ$'s. A greater demand for currency, and thus a higher risk for a dangerous inflation." - Hoogenbosch Finansieel.

The Daily Dowland
The Only Place For News!

Sarzonian Recession Worsens - No Word From Skinnian Government

Saturday, 11th February. As the Sarzonian economic situation seems only to worsen with every passing day, no official word has yet to come from either the government or the King himself on the official attitude to the crisis that grips the Grand Monarchy's closest ally. Despite reports of allied countries, including Praetonia, dumping vast amounts of Sarzonian Dollars onto the market and reinvesting in safer currencies, there has been no movement from the Skinnian government.

Failing to elicit any response from the Ministerial Press Agency, the Dowland was forced to turn to an independant economic advisor, Sir Charles Fortesque. In a statement prepared for the Dowland, Fortewsque stated that "The only sensible course of action for the government would be to mimick the actions of other countries and dump the Sarzonian Dollar, allowing for the price to continue to drop; this would eventually allow the Sarzonian government to begin the long rebuilding progress."

[OOC: Please keep any further OOC posts out of this thread. SU, please delete your posts.]

Woodstock Daily Mail

Multi-partisan acts pass Parliament, President

by Jennifer Halloran
Daily Mail Staff Writer

WOODSTOCK (11 February 2006) -- The Corporate Accountability Act and Economic Recovery Act sailed through both chambers of Parliament yesterday and were signed into law by President Mike Sarzo after hours of debate over an amendment to the Economic Recovery Act to establish a gold standard for a Sarzonian dollar currently in freefall as several nations sell off the currency. Ultimately, the amendment passed and was signed into law when Sarzo declined to invoke the line item veto.

The measure also breaks up the Portland Iron Works conglomerate back into its original four companies: The Portland Iron Works naval shipyard company, Avalon Aerospace Corporation, Incorporated Ordnance Company, and Space Union National Aerospace Corporation Storefront. According to sources within the Incorporated Sarzonian Government, Admiral Barbara Tucker (ISN-Ret.) formerly the CEO of the conglomerate, will retain her job as the managing director of the naval storefront at a price.

"She will have to agree to the breakup as it stands without having the apperance of a conglomerate controlling Sarzonian industry," said a high-ranking member of the Sarzo administration who declined to give her name. "She also agreed to accept personal responsibility for the out-of-control bidding even though she made it clear she didn't personally authorise it."

Avalon Aerospace Corporation managing director Stephen C. Wilcox, a former major general in the Incorporated Sarzonian Air Force, said Tucker tendered her resignation, but Sarzo personally refused her offer to "wash her hands" of the mess.

"He told her, 'you got yourselves in that mess with irresponsible bidding and it will be up to you to extract yourselves from it.' He also said he was willing to accept personal responsibility for not doing more to prevent the company from becoming too big for its britches, so to speak."

The decision to tie the Sarzonian dollar to the gold standard, long considered but dismissed as an antiquated measure with an increased focus on platinum and other more expensive metals, came with some controversy, but Vice President for Business and Commerce Janis Hedge said "it was absolutely necessary to create immediate stablilty.

"We can no longer allow the free float economic system that has been standing by whilst we have spiraled into this recession," Hedge said. "Fixing the value of the Sarzonian dollar to the gold standard will go a long way toward bringing needed stablility to this country when we need it the most."

From Capital Cities Times


http://img.photobucket.com/albums/v114/hamptonshire/NS%20Pictures/NT_zedillof.jpg
Acting Finance Minister, and member of the
Triumvirate Council, Luis Santiago attacks the
'dangerous and ill thought out' scheme to
switch the Sarzonian dollar to a fractional
gold standard.

All That Glitters is Not Gold


Director-General Cirmos-Varcolik today denounced the Sarzonian government's move toward the gold standard. "It is a simple impossibility for any current nation to have on hand enough gold to back all available currency. The current move by the Sarzonians is nothing more than empty words." The strong words from the normally demure Cirmos-Varcolik come as she prepares to host the Seaburg Conference.

"A fractional gold reserve only invites catastrophe," newly named Acting Finance Minister Luis Santiago said to the press this afternoon, "a currency backed with gold relies on having available stockpiles of gold. With a fractional reserve, investors will exchange Sarzonian dollars for gold thus sapping whatever strength would have been gained from the gold standard". Hamptonian economic analysts are puzzled by the actions of the Sarzonian Parliament. Minister Santiago warned that unless the current powers that be in the Incorporated States stopped making "reactionary" policy changes, the current recession could become a full blown depression. In a move sure to invoke controversy both in Woodstock and Obsidia, Minister Santiago said, "The massive aid packages currently being planned by allied governments will dry up unless the Sarzonians start making common sense policy decisions."

While the passage of the Corporate Accountability Act and Economic Recovery Act signals that Sarzonia has begun the long path to recovery, the holes in the reform package show that much more effort is needed to overhaul the current economic system.

SUNACS Reborn in New Identity; Federate Announces More Aid for Sarzonia

Ayadi Accords Newspaper Corporation

Ayadi, Space Union - After a long series of waiting, the Parliment of Sarzonia has passed the Economic Recovery Act, which effectively disinegrated the Portland Iron Works conglomerate, once and for all. Born from the ruins are four new companies: Portland Iron Works, Avalon Aerospace Corporation, Incorporated Ordance Corporation, and Space Union's National Arms Corporation Storefront.

Earlier today, President Mike Sarz and the Sarzonian Parliment met an agreement and passed the Economic Recovery Act, which split Portland Iron Works once more into four seperate companies, ending the conglomerate's life.

When news of this arrived in Space Union, the Federate had this to say, "I'm glad that the President of Sarzonia has realised that the danger of such a large company having control of an economy is not healthy. Hopefully this seperation will help solve Sarzonia's economic problems." The Federate had this to say about the new corporation of SUNACS, "it is pleasing to hear that SUNACS has seperated from the Portland Iron Works and our economy is no longer under foreign government influence, even if albeit a close ally."

The new corporation of SUNACS is currently under government jurisdiction for a short period till it can find executive leaders to run it and make it self-sufficient. The new company is likely to be renamed United Aerospace Enginneering Corporation (UAEC) after this mess. The new corporation is intended to be lead by none other than former Tylon Aerospace Industries's CEO/Chairman Raja Tylon's son, Jeevan Tylon. He will be appointing the companies new executives in the coming weeks.

Meanwhile, the Federate has announced that coupled from the first donations, the Chamber of Electorates has authorized the donation of a package of aid. This aid package will include $2.5 trillion in hard cash, $500 billion worth in food and water, 20 of Space Union's best economist to work alongside Sarzonian economist to help devise a plan, and up to $5 trillion more as a loan from an alliance between Yectin and Shiv Banking Corporations. A fleet of C-360 Stormbringers will bring the aid to the Sarzonian people to airports across that country once the greenlight is given by the Sarzonian government to procede.

In a more indirect way to help the Sarzonian economy, the Federate has announced a massive naval purchase from Portland Iron Works again that is expected to go in the $40 trillions together. Earlier, Space Union put in an order worth over $30 trillion in the Phase I of Space Union Navy's Future Expansion Program. This $40 trillion deal is expected to be won by the Portland Iron Works' corporation for the Phase II of that plan. More info will be released once it comes on.

The National Union Stock Exchange rose 230 points today after Pacitalian and Hamptonshire investors took their money from Sarzonia and invested them in Space Union corporations. But investors continue to sell off Sarzonian shares while pushing them into other foreign companies. The Spaco Dollar has also seen an increase in its exchange rate as foreign nations buy it up for their reserves to take the place of the Sarz Dollars that are being dumped internationally.

From the Independent Financier (online)

A Spiraling Yellow Brick Road

Sarzonia Adopts a Gold Standard

By Alan White
The Independent Financier, Philadelphia

________________________________________

In response to the Sarzonian government pegging the Sarzonian Dollar to the precious medal gold, Chancellor of the Exchequer Stephen McKay called the move “deeply worrisome” and “reckless.” Already in trouble with Sarzonian officials for his unabashed criticism of their fiscal policy, McKay spoke at a previously-scheduled economic conference unrelated to the Sarzonian economic collapse.

McKay’s comments echoed those of his colleagues and peers in Obsidia and yet were most surprising for their reservation and level-headedness in light of the rift between the Chancellor and the Sarzonian Lieutenant President. Political analysts highlight the televised speech given by Prime Minister Tetley yesterday before the House of Lords as the reason.

“The people of the United Kingdom are largely dissatisfied with the Sarzonian government and what is perceived as unwanted meddling and interference in domestic UK policies,” said Daniel Lombard, Professor of International Relations at Hillcrest University. “Heretofore the Prime Minister has made clear his intention to restore some degree of normalcy to the relations between the UK and Sarzonia – but he has to walk a very fine line between his electorate and international opinion. Yesterday was perhaps a vocal expression of the people’s anger and resentment of Sarzonia. It’s quite clear that since Lord Salisbury’s meeting with the Chancellor that Mr. McKay has been far more reserved in his criticism of Sarzonia.”

Indeed, in his speech McKay refrained from any direct criticism of individuals within the Sarzonian government, instead stating that “the current financial policies of the administration in power seem designed only to intensify the collapse.” He went on to comment that in the midst of a recession, a sudden shift to a gold standard “will only harm consumer confidence in the Sarzonian economy, triggering bank runs and bank riots that will deplete the gold reserves of the nation’s banks and of Sarzonia itself. Such an event would only exacerbate the problems facing Sarzonia.”

On the topic of UK aid to Sarzonia McKay reiterated the statements of Prime Minister Tetley that “the United Kingdom cannot stand with foreign governments in offering aid that, if issued, would be used in fashions to shore up an inherently weak foundation.”

In the Philadelphia precious metals market, the price of gold rose to 388 Azazia pounds per troy ounce while those few investors continuing to hold Sarzonian dollars dumped them as the exchange rate hit a new low of SZ$10 : A£1. UK investors have instead shifted to a number of currencies that are proving their durability in this crisis: the Azazia pound, the instead prefer to purchase the Azazia pound, the duoro, and the kroner in addition to smaller, but still significant, purchases of the Nielander pound and the praefeli.

Portland Press-Herald

Sarzo: 'Painful decisions' remain

by Geoff Carlson
The Press-Herald

WOODSTOCK (11 February 2006) -- Despite the news that Space Union has announced a massive aid package to help Sarzonia out of a recession that is having increased impact worldwide, President Mike Sarzo said in a primetime address to the nation that the Incorporated Sarzonian Government will need to make "painful decisions" in the days ahead as it works to bring economic recovery to a nation wracked by the throes of the worst economic recession in Sarzonian history.

"We have taken the first, difficult steps in the long road to recovery," Sarzo said in his speech following signing the Corporate Accountability Act and the Economic Recovery Act. "For us to ensure that the remedies we approach work as we hope for the long-term health of the Incorporated States, we must be ready to make more painful decisions in the immediate future to ensure the recovery proceeds apace."

Sarzo also announced the government receivership of the Portland Iron Works "ended when the PIW as it was ceased to be." Thus, the Portland Iron Works and its former subsidiaries are no longer under government control. However, they're not out of the government's watchful eye just yet. The companies were placed under federal probation, a step most political and economic scientists call "two steps below full government receivership" until the investigation into the PIW's bidding practices was "fully realised."

"The Portland Iron Works leadership as it was before the new acts must answer to the Sarzonian people and must fully cooperate with the investigation into their bidding practices," Attorney General Jonathan Cochrane said. "The penalties for non-compliance or for anything other than full cooperation will be far more severe than any penalty for their actions until this point."

Portland Iron Works officials declined to comment on Sarzo's or Cochrane's speeches, referring reporter's calls to the legal department. The legal department declined to comment on the speeches because the matter is currently in litigation.

Lieutenant President Nicole Lewis expressed disappointment at comments made by Hamptonshire's acting foreign minister Luis Santiago in response to Sarzonia's planned implementation of the gold standard to back up the Sarzonian dollar.

"Simply criticising our actions without a well-considered alternative does nothing to address the problems we are facing," Lewis said. "We are aware of their concerns that the current economic situation could have a disasterous effect on the worldwide economic picture. We do not share those concerns."

Deputy Senior Vice President and External Affairs Officer Grant Haffner expressed "no surprise" that the United Kingdom of Azazia refused to offer aid to the Sarzonian government after they attacked Sarzonian "hypocrisy" for the government's reactions to comments made by Chancellor of the Exchequer Stephen McKay suggesting that Azazia blacklist Sarzonia.

"In the end, our governments can't get past the fact that we dislike each other," Haffner said. Reacting to the stated desire of Azazia to normalise relations with Azazia, Haffner said, "I don't want to speculate about the chances of that. If they wish to normalise relations, they know how to contact us."

The Portland Stock Exchange took another hit today, shutting down yesterday at 1:30 p.m. after it lost seven percent of its value and the automated software designed to close the exchange in the event of a five percent loss didn't activate.

"We're investigating the software mixup," a spokeswoman for the PSE said. "If it weren't for [Chairman Dan Andrews], it would have dropped even more." Andrews invoked rarely-used emergency powers by the PSE chairman to shut down trading early to prevent a further decline in the PSE. Before the shut down, a few investors began selling off the Pacitalian douro and the Hamptonian kroner in what some stock brokers described as "purely reactionary tripe."

"The politics of revenge are not appropriate at this time," Sarzo said in his speech, addressing the issue of douro and kroner sell-offs. "We need to approach our national recovery with intelligent decisions and do it with the help of our true friends, people like Isselmere-Nieland and Space Union, who have already come through with aid."

Sarzo also had harsh words for the rioters who burned effigies and protested in front of the Pacitalian embassy and warned against future riots.

"Anyone who uses violence as a means of getting their point across will run afoul of the Sarzonian government," Sarzo said. "Any repeats of those riots will result in dire consequences and will require the people involved to take part in financial reparations for any damages inflicted.

"We are approaching a state of emergency," Sarzo said, though he declined to sign an executive order declaring a federal state of emergency or invoke the Wartime Powers Act to prevent dissent. "Peaceful protests are a necessary and proper element of a representative form of government. Violence has no place in the Incorporated States of Sarzonia."

OOC: I apologise for this OOC post, but right now, this whole thread is going around in circles with no resolution in sight. I'd like to move toward resolution sooner rather than later and there are only so many ways you can say "my government condemns Sarzonia's government." I'm also considering retconning the thread and saying this never happened.

[OOC: Will delete this post if it's unnecessary.]

The Prime Minister Middleton viewed the latest reports from the Foreign Office and the news services with great alarm. Contrary to modern fiscal trends, the Sarzonian government had adopted the gold standard, inevitably sending ripples of fear throughout the business community. Bertram Creighly-Muilsen, Governor-General of the Union Bank, immediately recommended ceasing Isselmere-Nieland's infusion of funds into the Sarzonian economy. The only reason the United Kingdom's currency, the Lethian pound or lethse, was not following the Sarzonian dollar into oblivion was the continued willingness of foreign investors to exchange SZ$ for Isselmere-Nielander and Azazian pounds, Hamptonian kroner, Praetonian praefelis, and Pacitalian douros. Most worryingly, Creighly-Muilsen hinted at the Union Bank pursuing the example established by those other nations, although for the moment, Sarzonian dollars remained within the Union Bank.

Alexandra uí-Nechtaen's distressed expression reflected those of Middleton and Sir George. "There's nothing we can do now short of abandoning them as well," she muttered, rising from her chair to sneak a peek out of the bulletproof curtains and window upon Daurmont. It was strangely beautiful, a powerful North Atlantic wind having brushed the usual steel grey clouds aside allowing an astonishingly warm February sun to fool the Finance Minister for a moment that the situation could be restored without much upheaval. But only for a moment.

"We won't cast them to the wind," declared Sir George, his flinty resolve detectable within the whispered utterance.

"No, Sir George, we won't," Middleton agreed. "But we must accept that we cannot force a fiscal aid programme through Parliament at the present time. In the present climate, there would be a vote of confidence, and I don't believe Mr Watson can guarantee the support of the Liberal Democrats, nor our Chief Whip our own members."

"What shall we do then, Geoff?" Sir George wondered as he refilled his glass of whiskey.

"Alex will be off to Hamptonshire with Creighly-Muilsen and you will have to go to Woodstock, see what can be done there."

From La Repubblica Oggia

http://i35.photobucket.com/albums/d197/Pacitalia/Constantino_Sorantanali_7.jpg
Prime Minister Constantino Sorantanali looks on
as a proposed aid package from his Agustinate of
Commerce and Trade, Félix Almendralejo, is soundly
defeated in the Constazione Ampoliticato Federali.

Almendralejo aid package thrown out; Sarzonians fix dollar to gold


by Manti Soratina-Murana, Timiocato

An aid package designed to help Sarzonia recover from its self-imposed recession was soundly defeated, in an emergency session of the Constazione Ampoliticato Federali Saturday morning. The defeat came after two major developments: members of the CAF concerned the spending was too liberal, and news that the Sarzonian government was fixing their dollar to the gold standard.

"These two pieces of legislation that the Sarzonian government passed would have been very productive," PTIC president Francesco Porantabano said, "if they did not suddenly turn around and fix their dollar to a gold supply they do not even have. So, instead of getting on the path to recovery, they are simply squandering their chances of doing so. We can all agree that finding a correct solution will be difficult because of the existing circumstances, but this one was simply too hasty and makes no economic sense."

Agustinate of Commerce and Trade Félix Almendralejo's bill called for Đ 175bn to be spent on aiding the Sarzonian economic recovery over five years. However, PSC MPPs denounced the move as "frivolous" and "wasteful" while more rightist FPD MPPs joined Marco Quirinamo's PdT in calling the package "much too generous". The Sarzonian government's decision to fix their dollar to an insufficient gold reserve only seemed to fuel the desire to defeat Almendralejo's aid package -the bill was defeated 503-121, with 23 members absent or abstaining from the vote.

Almendralejo said he was "disappointed my package did not clear the CAF", but that he "understood the many fiscally irresponsible moves of the Sarzonian government are contributing to a sense that they need foreign advice and help but refuse to take it", adding "that may be contributing to a revelation that we should all hold off on aid until the Sarzonian government starts making the right decisions.

News of the Sarzonian currency fixation hit the ForEx market in Mandragora hard - the Sarzonian dollar, continuing to be mass-sold from reserves, plummeted to an exchange rate of SZ$11.18 : Đ 1,00 : K 1.00. The Sarzonian currency also passed the ten-dollar mark on the Azazian pound and the praefeli, a sign that foreign investors are not buying into the fixation scheme.

Reports suggest the Hamptonian and Pacitalian governments will offer to fix the Sarzonian dollar at $15 : Đ 1,00 : K 1.00 could not be confirmed, but with the prospects of a sliding Sarzonian dollar falling even further, this could be the Sarzonians' saving grace. However, the Central National Bank of Pacitalia notes that any sort of dollar-douro fixation is still up the air.

"The fact remains," an anonymous high-ranking source in the CNBP said, "that should the Sarzonian government continue to make poor economic decisions that may affect economic integrity in other countries despite certain controls to promote a contrary effect, it will be more realistic to continue letting the Sarzonian dollar slide in foreign markets as opposed to fixing it."

The source added: "President Sarzo is doing a good job trying to bring back social order but the mood in foreign markets suggests he is not doing nearly enough to rectify the economic recession."

"It is clear we need solutions, but the Sarzonian government cannot afford to criticise foreign governments at this time," CNBP vice-president and spokesman Kemal Bezir Araz said Saturday. "They need to show they have control over their own economic integrity, or at least that they are gaining some semblance of control. The conference in Seaburg will most definitely give us all the direction we need, but it is truly up to Sarzonian politicians to do much more than they are."

Bezir Araz said he was concerned with further anti-capitalist moves by the Sarzonian government, adding "fixing the currency to a precious metal and not to another currency is not as lucrative as it might sound. In fact, this may just cancel out the effectiveness of the Economic Recovery Act and Corporate Accountability Act, making them just drops in the bucket when they were intended to be so much more than that."

Agustinate of Finance Sebastiano Sigurimasso has left for Seaburg with two of his senior staff. The United Kingdom's Chancellor of the Exchequer, Stephen McKay, will also be attending, along with financial figureheads from Praetonia, Isselmere-Nieland and Space Union.

[ OOC: Sarz, we need to talk on AIM. ASAP. ]

http://img.photobucket.com/albums/v419/msarzo/GreatSeal.jpg

Official Statement
Incorporated Sarzonian Government

The Incorporated Sarzonian Government notes with some disappointment the rejection of the aid package offered by the Democratic Capitalist Republic of Pacitalia; however, we fully understand their reasons for doing so.

We wish to reiterate that our government's disappointment is directed toward the government and the hostility shown by our government does not extend to the people of Pacitalia itself. I wish to extend my personal apology that our relationship has deteoriated to the point where we have reached what seems to be a diplomatic impasse with the Pacitalian government.

Once more, I plead for calm; however, this time I ask for restraint not just among the Sarzonian people, but from my own government. Reactionary policies are doing far more harm to our own cause than a careful approach would have, as we have seen from the refusals of the United Kingdom of Azazia and of Pacitalia to approve aid packages. It is time for our government to stop shooting itself in the foot and for us as a nation to collectively grow up. And, yes, that includes your President.

In closing, I have consulted with the lawmakers who have implemented the gold standard and with members of my own government and they have proposed legislation to reconsider the gold standard. Should a viable and practicable alternative cross my desk, I am willing to sign it once the majesty of the representative system of government has demonstrated itself fully and completely.

The events of this recession have shown that we do not live in a vacuum and we are not able to pull ourselves out of this fiscal morass without a greater sense of cooperation. In this financial crisis, we have to realise that the only enemies we have are ourselves.

Mike Sarzo
President
Incorporated States of Sarzonia

[OOC: Ditto to Isselmere's comment.]

Consolidated Arms announces "Reisner Plan"
Controversial proposal likely to garner criticism at home, abroad

AURORA -- In an effort to shore up declining Sarzonian industry, Consolidated Arms, Inc. CEO Derek Reisner today announced his company's proposal to invest heavily in the Sarzonian defense industry, which was severely affected by the temporary nationalization, and recent break-up, of defense conglomerate Portland Iron Works.

The proposed deal, dubbed the "Reisner Plan," would have Consolidated Arms investing some $50 billion in Sarzonian defense firms over a period of ten years, which could help stabilize a Sarzonian economy that has been rapidly sliding from recession to possible depression, particularly in light of Pacitalian, Hamptonian, and Azazian mass sell-offs of Sarzonian currency.

"We encourage the Incorporated Government to consider our proposal," Reisner said yesterday at a press conference held at Consolidated Arms' headquarters in Aurora. "We strongly believe that our proposal would help create badly-needed jobs in the Sarzonian defense industry."

When questioned if the Reisner Plan would be in violation of comments made by Sarzonian President Mike Sarzo stating that "Portland Iron Works is not for sale," Reisner immediately dismissed the concern.

"We recognize and respect the Incorporated Government's mandate that no foreign corporation attempt to seize control of Portland Iron Works, and we will, of course, act in accordance with the Incorporated Government's wishes."

When reminded that Sarzo's comments apparently extended to all Sarzonian corporations, Reisner remained optimistic.

"That particular comment was made nearer to the beginning of this crisis, when Sarzonia's economic straits did not appear so dire," Reisner said. "We believe that the worsening of this crisis could have changed President Sarzo's mind regarding foreign investments." He added, "However, we will again comply with the Incorporated Government's requests, and if they do not wish our plan to go through, then so be it."

Despite words from analysts to bank on a long-term Sarzonian recovery, jittery investors continued their large sell-offs of Sarzonian currency. The sell-offs were largely credited by traders on the floor as the primary reason the HAL500 finished at 9,974.17, up 30.96 points from yesterday's record low of 9,943.21. Consolidated Arms' stock was also up at the news of the Reisner Plan, rising to $61.78 from yesterday's $59.56.

[OOC: Sarz, just FYI -- per NSEconomy's exchange rate of approximately $1 = $1.73 -- $50 billion = $86.5 billion USD.]

The Gardens of the Citadel
Imperium, New Britain

In a stiff northern breeze the flag of the United Kingdom snapped back and forth, the red cross of St. George dazzling the eyes against the dark blue field that represented the ocean that both bound and isolated the Home Islands and the remainder of the Kingdom. Looking up into the clear and brilliant skies of the Pacific – peculiar today for the almost complete lack of even a single cumulus cloud – Alistair Tetley pulled a hand to his forehead to block the glare of the sun.

Not finding an answer he shook his head behind the privacy of the Citadel walls while he strolled about the small yet well-kept flower gardens that proffered some solitude to a man who knew he all but lived far beyond his years. And though Tetley wished for nothing more than a day of quiet nothingness the walls of the Citadel could not hold back the world, they could not hold back information – information that now besieged his mind with a ferocious headache that went unabated by pharmaceuticals.

Glancing down the walkway he saw a familiar man approaching, dressed in a grey suit whose fibers shone like silver in the glint of the sun while the black shirt and tie absorbed the insolation to warm him in spite of the cool air descending from the New Brittany Mountains just to the west of Imperium. Tetley rose his hand, beckoning his friend to approach and the two smiled as a sign of acknowledgment, neither wishing to be so ungentlemanly and shout over the distance.

Good afternoon, Stephen, Tetley began, his quiet voice both warm and reassuring. I take it you got my message?

Yes, Mr. Prime Minister, Geoffrey was good enough to pass it right along.

Very good then, care to walk with me for a few minutes?

Certainly, sir. Stephen McKay took a moment to readjust his stride to mirror the shorter gait of the Prime Minister. At forty-two years of age, McKay fell into line with Tetley’s concept of government: youth bringing fresh ideas into a stagnant institution. Born in New Britain but now calling Essington home, McKay had been a member of the Democratic Socialist Party since the age of twenty and had participated in numerous activities including several protests during his days at Hillcrest, where he had obtained a degree in finance. Under Tetley’s first administration he had served as a deputy minister to Dr. Garrett Jackson, then Minister of Trade and Industry, before moving to the Chancellery as a deputy to Liam O’Connell, now awaiting trial on the charge of treason.

In his years in Parliament on the backbench he had become known for often lengthy speeches where simpler more concise statements would suffice as well as becoming known for having a short fuse, which the international community was only now beginning to understand. These were all, of course, reasons why the talented Emily Deveraux continued to serve in the role of Foreign Secretary and why she did not move up to what UK politicians and analysts considered the number two role in the UK government. And so to McKay the sudden jump from an assistant to the Chancellor to being the Chancellor himself had come as quite a surprise – though a surprise he had readily accepted.

We both know the stakes, Stephen, and I daresay that we cannot afford to muck things up at this late stage in the game. For his part Tetley felt pulled in two different directions over Sarzonia. They had unquestionably thrust themselves into the sovereign domestic affairs of the United Kingdom by so vehemently opposing the UK’s application to join the Union of World Powers because a Sarzonian ally had fallen to the might of the UK during a justifiable war. And while they had hammered away at the imperialism of the United Kingdom they seemingly ignored their own colonies and their own imperial structure – the Woodstock Pact. The two sides had also been hurt by having a series of diplomatic tussles between deputies and ministers and vice presidents who knew not how to behave as diplomats and persons of state.

And yet there remained the fact that Sarzonia was, despite its faults, committed to humanity. And that, in this world, Tetley found admirable. As much as neither side would care to admit it there was a common ground and a lingua franca upon which relations could be repaired to a point where perhaps both parties could stand together as friends – though such days were at the best many, many years away. Nonetheless, he had to give them something for the Sarzonian people were truly suffering and the United Kingdom could not simply abandon people in need.

Turning to face McKay, Tetley stopped walking and stretched out his arm, running his fingertips slowly over the cool waxy surface of a fern. You leave for Seaburg when?

An hour, sir, from Emperor’s Field.

When you get there your mission is two-fold. Firstly, help secure some sort of aid package to Sarzonia that is contingent upon the Sarzonians enacting prudent and practical economic reforms – we are not going to throw our money into a black hole, and that’s all Sarzonia is for the moment.

Do you have anything specific in mind, Your Lordship?

Sir, will do, Stephen, but not necessarily. We should not kid ourselves, and nor the Sarzonians themselves – the UK and Sarzonia are not allies, not even friends and as such I think it’s best to let their friends deal out most of the money. At the current exchange rates even a fifty billion pound aid package will be of enormous value to the Sarzonians – and it shall likely be smaller than that of most nations. Additionally, we can offer that the UK government would consider purchasing Sarzonian dollars – again only on the condition of economic reforms that hold promise. If they insist on this gold standard non-sense there will be no UK deal. If they attempt to renationalize companies, there will be no deal. Any unnecessary and unwanted government interference in the Sarzonian economy and there will be no deal. You understand all that, Stephen?

I do, Mr. Prime Minister.

Very good, then number two, we have a singular opportunity here to reach out to several governments with whom relations would be beneficial – not just for us but for them as well. We have minimal contacts with Isselmere-Nieland as well as Space Union but none so far with the Hamptonians or Praetonians. I want you to make the most of this opportunity, Stephen. I don’t expect anything significant, you’re not a diplomat after all. The two men laughed politely at Tetley’s jibe. But these coming days could be pivotal for the history of UK foreign and economic relations.

I shall do my best, sir.

Tetley pulled his hand away from nature, away from his only source of true solitude and pulled up his sleeve to find his titanium watch and the time. Now, if you’ll excuse me, Stephen, I have a phone call to make to Prime Minister Sorantanali about this whole affair. Godspeed, Stephen.

Thank you, sir.

[OOC: Sorry about the OOC post but I just can't write an IC post. The Seaburg Conference (http://forums.jolt.co.uk/showthread.php?t=468325) has started. Participants, please begin posting immediately. Thank you.]

Speculation Increases on Mysterious Co-operation
Economy Minister Jalenza Coy on Details

Technopolis -- Earlier today a message was sent from the Novacom Manufacturing Headquarters here in Technopolis to Sarzonia, the contents of the message remain unknown however a fair deal of speculation has been heavy on the ground, from the mundane to the most radical, some citing the increased amount of Launches at Trinarigungo of unknown payloads into space as possible evidence of some clandestine joint project, however in an official statement today the Economy Minister stated, "I have always acted in the best Interests of the economy, although we have until now had no financial interests in the Incorporated States it is in our best interests, as well as theirs to begin working more closely together, such idle speculation as well as the highly improbable rumors flying round Technopolois and Novesia as well as the other cities lately are counter-productive and I would request that instead of wasting time speculating, that you instead focus on other issues," shortly afterwards the Minister headed into the Technopolis Tower, Novacom Manufacturing's Headquarters and has at time of print not yet emerged.

The Economic Situation in Sarzonia has been worsening steadily, with several prominent analysts going so far as to even publicly state that unless drastic action is taken there may not be a Sarzonian Economy left to rejuvenate, in spite of heavy buying of Sarzonian bonds, earlier today several further blows came down upon the Sarzonian Economy with their investments in Platinum in Guffingford now all but worthless as well as what is seen as a frantic attempt to stem the rot by pegging the Sarzonian Dollar at Gold Prices, already several shrewd investors are buying gold and selling Sarzonian Dollars, however many question if this in the long term is truly wise business sense. Surely a Company as robust as Portland Iron Works cannot forever continue to drag down the Sarzonian Economy, not when it this year reported high foreign sales in excess of several nations GDP per Annum.

Despite the Ministers statements something is indeed up in Technopolis and Novesia as well, with earlier a meeting of the Council of Ministers was called, the subject of the meeting was unknown however we expect to see a basic transcript at the usual time later on this evening. One of the results of the meeting seems to have been some sort of preparation here in Technopolis, Capitol Enforcers have been seen upping ID checks and a section of Technopolis International has been sealed off, ostensibly for maintenance, however though we can confirm a heavy security presence, and our reporters upon nearing the area were promptly ushered off the premises. Whatever is happening we should know later on in the week when whatever is being prepared for occurs.

A short article from the Hoogenbosch Finansieel frontpage.


Mining Co's and Government willing to support Sarzonia's need for gold

Critics and supporters of the 'Financial Support Act' agree about one thing: a healthy Sarzonian economy benefits Guffingford greatly. How to make Sarzonia healthy again remains a topic of debate, but the flow of Guffingfordian gold to Sarzonia will surely create much needed monetary stability, says master banker James Thaddick of FNB&T.

Hoogenbosch, Today -- after the initial drop on the HSE traders received the news of another fine nation adopting a gold standard with applause. Suddenly the old grudges were forgotten, and Mike Sarzo received an overwhelming applause from the stockbrokers and traders. While Pacitalia remains in doubt about the usefulness of gold to stabalize the SZ$, Guffingfordian officials already announced their plans to propose fixed rate between the SZ$ and Gulden once the Sarzonian economy is worthwhile again to trade with.

The Territorial Mining Corporation [stock symbol TMC] sent a message to the Sarzonian ministry of finance about a deal which concerns an annual shipment lasting five years of 100 tons of gold bars. The same government and mining corporation already announced no gap between supply and demand have been created with this proposal, since many new gold mines are opening in the upper north of Nord-Neuland, and various other locations in the same Freestate. Even the banking titan JJ&J said "this is a very good step in the right direction. While we still believe Sarzonia needs more than just gold, but this is very promising indeed."

The Parliamentarian
___________________________
Chancellor backs Seaburg as Imperial Metallurgy backs the Gold Standard

The Chancellor of the Exchequer has put his full confidence behind the Seaburg conference to find a resolution to the Sarzonian financial crisis and has stated that he will use 'Every ounce of influence available at his command' to ensure that the Sarzonians accept the conference's recommendations.

Speaking from the Treasury yesterday evening, His Grace declared that 'Some of the greatest treasurers and financial minds will be at work, and Mr Sarzo can rest assured that a solution shall be found. As hard as it may be to swallow, a solid course of action must be undertaken before Sarzonia is swallowed up by the ravages of economic decline.' The Chancellor is due to set off for the conference this morning.

Meanwhile, the [ICI-100] has reported strong trading with the exchange up 2.3% on pre-Sarzonian-crash levels as foreign investment withdrawn from Sarzonian companies pours into Praetonia. The [ICI-500] list of the next 500 top shares reported a 1.4% increase on pre-crash levels.

Takeover bids made by Praetonian companies for foreign business is predicted to be up 85% over last quarter, with many of these takeover bids concerning Sarzonian companies and almost all of them based on the recent stock market rises. 'What we have here is a rather perverse situation where Sarzonian companies are having to fend off hostile takeover bids from Praetonian companies fuelled by what was until a week ago Sarzonian money,' commented a CPI spokesman.

However, many are worried that this period of growth will not last, with a 'recovered Sarzonia sure to suck money out of the Praetonian markets as a vacuum of excellent oppurtunities emerges,' according to the CPI Director of Long-Term Finance. 'On the other hand, investment withdrawl from the industrial sector should be matched by profit increases within the investment sector of the [ICI-100].

At the same time as the Chancellor of Exchequer is advising the Sarzonian government to take up the Hampto-Sarzonian linked currency plan, Imperial Metallurgy is celebrating the new gold standard which has been widely criticised by foreign accountants. 'We believe that with the aid of the Territorial Mining Company, with whom we intend to work with closely, we can satisfy the Sarzonian demand for gold. 'The Praeton Peninsular mountains are full of the stuff, so why not sell it to the Sarzonian treasury as well as our own?' Commented the Director-General.

The Confederation of Praetonian Industry, however, has strongly criticised the move, claiming that the plan is 'sheer financial lunacy.' A CPI spokesman said in a scathing statement that 'The Sarzonian government clearly doesnt have the gold, so they will have to buy it. To do that they will need to spend the sum of the value of their entire currency purchasing foreign gold. This will wipe out much of their GDP. The plan is absurd, and should never have been proposed.'

Woodstock Daily Mail

Aid packages face uncertain fate in Parliament

by Jennifer Halloran
Daily Mail Staff Writer

WOODSTOCK (12 February 2006) -- An economic aid package currently under debate in Seaburg created for the explicit purpose of dealing with the country's worst economic crisis in its history faces a fierce battle in a Parliament that some say has contributed to the crisis.

"It's beginning to look more and more like the assembled ministers are favouring the equivalent of economic blackmail," Senator Brian Delgado (Conservative-Cooke) said. "Tying our currency to the douro and kroner is a dangerous affront to Sarzonian sovereignty."

Delgado isn't alone in Parliament. An informal survey of fellow Conservative Party members in both houses of Parliament overwhelmingly suggests they will mostly vote against the proposed aid package, with some Delegates saying the package would have to be amended "before we even get to the table."

"It's foolhardy to expect to force us to accept an aid package under those conditions," House Minority Leader David Bradley (Conservative-Endymion) said. "They [the Seaburg ministers] may say their compassion has limits, but so does our ability to accept anything that compromises our nation's independence from a bunch of foreigners."

With the recession nearing its second week, the Portland Iron Works announced further layoffs of 10,000 white collar workers, most of whom were in upper management, as the company was looking to pick up the pieces from its role in the recession. Admiral Barbara Tucker (ISN-Ret.) said the investigation into the bidding practices for the Manston Naval Works is progressing "slowly."

"We are in the process of trying to get to the bottom of it," Tucker said. "I have instructed our staff to cooperate fully with federal investigators and open the books. We can't begin the long and difficult road toward restoring consumer confidence in us or our products until we complete this investigation."

The Portland branch of the Sarzonian Federal Bureau of Investigation said that most of the company's workers are "cooperating to the extent we are hoping for," however, assistant vice president for finance Lleyton Somersby has "thrown roadblocks along the way." The FBI has gone to the Second Circuit Court of Sarzonia based in Portland to request a subponea and the Portland Press-Herald and this newspaper have filed National Open Records Act requests, which the company must comply with within 10 days.

When told of the lack of cooperation by Somersby, Tucker "went ape[expletive]," according to a company spokesman. Somersby was detained by federal police after he was personally given his walking papers by Tucker.

Day three of protests in front of the former Pacitalian embassy continued with more violence. This time, the President himself was directly involved. According to footage acquired from SNN Tonight, the President shouted "leave that flag alone!" when a protestor was about to put a torch to the Pacitalian flag. When the protestor said, "what are you gonna do about it Mr. President," Sarzo punched the protestor and wrestled the flag out of his hands. The Sarzonian Secret Service converged on the protestors before Sarzo was personally endangered.

The protestor, identified as 33 year old Stephen Marcus Chatman, said Sarzo's "[damn] lucky he's immune from prosecution as President or I'd sue his [rear]."

The Gray House has not confirmed the incident, but a spokesman for Sarzo said "the onset of further violence directed at the Pacitalian people will not be tolerated any further." Sarzo is said to be discussing options with the Department of Defence and Vice President for the Home Guard Bill Lighton, including nationalising the state militias and calling on them to prevent violent protests.

From the Georgetown Gazette (online)

Seaburg Sparking a Seachange?

Tetley and McKay Question Violations of Sarzonian Sovereignty

By Sean McGrath
The Georgetown Gazette, Imperium
________________________________________

As negotiations continue in Seaburg regarding the economic situation in Sarzonia, the position of the United Kingdom and Sarzonia have echoed an odd harmony that resounds if only because of the distrust that exists between the two states.

While the discussions between the financial leaders of the Seaburg Group continue, several parties have expressed concerns over forcing the Sarzonian government to accept austere measures regarding their fiscal policy. Expected among the group is Isselmere-Nieland; however, Chancellor Stephen McKay has also communicated his worries about violating Sarzonian sovereignty.

In Imperium, Prime Minister Alistair Tetley offered a short response to the ongoing meeting and the developments so far. Through a brief statement he admitted that he “harbour[s] some concerns” regarding the possible solution to tie the Sarzonian dollar to the douro and the kroner. “The issue of sovereignty over domestic affairs can be considered the catalyst that accelerated the decline in relations between our two states,” Tetley stated in the Citadel briefing room. “And if this government were to impose such drastic actions upon Sarzonia, we would be, quite frankly, guilty of the offences over which we chastised the Sarzonian government. I cannot commit the United Kingdom to following such a path and so we shall refrain from forcing any new policies upon our legislative peers in Sarzonia.”

These comments signal all but a complete reversal in the opinion of the UK government towards Sarzonia; all but because Lord Salisbury went on, when questioned about a report of President Sarzo assaulting a protestor, to say that “while I commend the President for his brawling prowess, I can condone neither the assault nor the immunity granted by the Sarzonian law – though their own legal system is wholly their own affair.”

In financially related news, the Philadelphia Exchange closed down by nine points today largely due to corporate earnings reports unrelated to the Sarzonia crisis. Noteworthy, however, is the continual upward trend of the price of gold and other precious metals as the Sarzonian government appears set to continue on its implementation of a gold standard.

[OOC: I don't know where you're getting the idea that I don't have enough gold. According to my factbook, gold is one of my nation's exports. Silver and platinum are among my imports.]

Portland Press Herald

Strange bedfellows may bury aid offer

WOODSTOCK (ASP) -- Coalitions among Sarzonia's five major political parties often do not include the Conservative Party and the Moderates agreeing on much of anything. However, both the party that passes for Sarzonia's right wing and the party representing Sarzonia's political centre are coming out against the proposed aid package from Seaburg.

"My opinion of the proposal to tie the acceptance of the tie in of the kroner and the douro by Sarzonia to whether or not we receive aid is emphatically clear," Senator Brian Delgado (Conservative-Cooke) said. "On its face, that is a recipe for disaster for the Sarzonian people far worse than our current economic plight."

A straw poll of Senators suggest a bill to accept such a recommendation by the Seaburg conference could go either way with the possibility of a tie that would be broken by Sarzonian Lieutenant President Nicole Lewis. Lewis has indicated to close friends and associates she's "dead set" against the Seaburg conference agreement, but "I'll vote at the pleasure of the President."

The decision by Sarzonia to tie its financial future to the gold standard resulted in near-unanimous condemnation by foreign governments, notably Pacitalia, Hamptonshire and Azazia. However, experts questioned the Pacitalian assertion that Sarzonia does not have enough gold reserves to back the Sarzonian dollar.

"That's ridiculous," said a source within the Division of Finance who asked not to be identified. "Gold is among our nation's exports. We don't have enormous stores of silver or platinum, but we don't have a gold shortage."

President Mike Sarzo declined to comment on persistent media reports that he has cancelled his trip to Praeton to conduct negotiations with former Pacitalian Prime Minister Timotaio Ell regarding restoring diplomatic relations between the countries, but a source close to Sarzo said "that's not in the cards at the moment."

"If the so-called Democratic Capitalist Republic of Pacitalia chooses to compromise Sarzonian sovereignty by directly interfering with the way we run our government as they have accused us of doing in the past, there can be no normalisation of relations between our countries," the source said.

The Office of External Affairs announced that they have sent notices to diplomatic and consular offices in Hamptonshire to "rev up their engines," with the possibility that Sarzonia may recall its embassy and consular staffs to Woodstock. Senior Vice President and External Affairs Officer Mark Lorber has written a letter of protest to the Democratic Imperium of Praetonia, saying the government's decision to support the "Seaburg ultimatum" was "a warning sign" that Praeto-Sarzonian relations "could strain at a troubling rate."

"We have been convinced that Praetonia had our best interests at heart. Now we're in a position where we need to examine our relations closely."

Lorber praised Isselmere-Nieland and, surprisingly, Azazia for their expressions of concern over Sarzonian sovereignty.

"We will remember who our true friends are when, not if, when we recover from this economic downturn," Lorber said. "Isselmere-Nieland have stood steadfastly by us while other nations have let us down. And even though our relations with Azazia have been far from harmonious, we appreciate the fact that [Chancellor of the Eschequer Stephen] McCay has objected to the compromise to Sarzonian sovereignty. We will not forget that."

However, Lorber's top deputy had harsh words for "the linchpins" of the Seaburg conference.

"The proposal to tie the possible granting of aid to Sarzonia to the requirement to adopt a tie in with the douro and the kroner are nothing short of economic terrorism," Deputy Senior Vice President and External Affairs Officer Grant Haffner said. "We don't negotiate with terrorists and we condemn the convening of a conference involving our nation's economy at which we have no voice.

"Sarzonia will make it emphatically clear to the Seaburg conference that we will not be coerced by any nation or any group of nations."

[OOC: Sorry about this OOC comment but I don't see where else it could be posted. Sarz, do you have any idea physically how much gold you'd need to back up trillions upon trillions of dollars in currency?

Let's say that Gold is at $750 a troy ounce (which is too high with NS gold production levels). If you were to back $10 trillion of currency in gold, which would only be a fraction of what you have out there, that would be 13.333 billion troy ounces. That comes out to about 914,285,923 pounds or 457,142 TONS. And that is less then a tenth of the actual gold you'd need to have a proper gold standard.

Even if, for some ungodly reason, you were to have physcially that much gold simply having that much would make it near worthless. Gold is only valuable because it is rare. If a single nation has 5 million tons of gold in their treasury alone, gold would be about as valuable as stainless steel.]

OOC IN A NORMAL FONT:
20 to 25% of your monetary portfolio is enough to guarantee stability. The Swiss have been doing it with 40% since I-don't-know-when. Contary to what people say, 20 is sufficient. And it's meant to stabalize, not making the SZ$ stronger. Maybe you should investigate these matters before you conclude a 100% gold backing is the only alternative. And talking about size, this is the NationStates world. Everybody here has oil, gas and what-not to last till infinity & beyond.

PS: why the brackets?

[OOC: Conventions regarding OOC comments, which tend to be in brackets, as well as size for longer OOC comments that might otherwise be too distracting. That written, I have to agree with Hamptonshire that the amount is immense, and frankly alarming, but I must also agree with Guffingford that a ratio between 20-40% in gold reserves might provide sufficient stabilisation, albeit at great cost to the world economy.]

In Woodstock...
Mr Colwan waited patiently outside of the Lieutenant President's office, hoping to speak with Her Excellency regarding a possibly unhelpful plan he was to advance on behalf of His Majesty and the Defence Procurement Agency: the reacquisition of a shipyard facility within Sarzonia.

... Elsewhere in Woodstock
With the Finance Minister in Seaburg, the Foreign Minister had travelled to Sarzonia. His flight had just arrived...

Singh Cautious of Gold Standard But Remains Behind Sarz; Space Union Providing More Aid

Ayadi Accords Newspaper Corporation (AANC)

Ayadi, Space Union - Today, Federate Satpul Singh has made it clear that he is cautious of Sarzonia's switch to the gold standard but says that he will nevertheless continue to support Sarzonia in its economic recovery.

The Federate, for the first time since Sarz's announcement, commented on the gold standard by saying, "I must act cautious toward Sarzonia's sudden change to the gold standard. Such a transition in such a fast pace is likely to do more damage before it helps." The Federate has warned that if the government does not show confidence in its own currency then investors will neither.

Nevertheless, the Federate has announced bodly, "Space Union will remain behind its allies in Sarzonia. I will not allow an ally to die such a horrible death." Singh commented, "If Space Union were to leave an ally in times of need, then we are no better than an enemy."

Meanwhile, Space Union's Chamber has announced that it will appropriate more help to Sarzonia. Earlier at the Seaburg conference, leaders from other countries suggested that until Sarzonia takes up their proposal, all allied nations were to not give aid to them, something the Federate has critized boldly, "I do not agree with my peers to force a nation to do something in return of aid. There are people suffering and politics seems to cloud their judgement. I will not allow innocents to suffer for the sake of politics. This is the time you have to learn to make a line between saving lives and playing politics."

The Federate also had this to say about the plan that Pacitalia and Hamptonshire proposed, "Although I must agree that the plan is quite a good one and if accepted it would help Sarzonia, but forcing on them is no better than infringing on their soverignty. A more diplomatic method must be used." The Federate currently is in Seaburg, Hamptonshire were he along with leaders from Praetonia, Isselmere, Pacitalia, Azazia, and Hamptonshire are meeting to formulate a plan to help the Sarzonian people and economy.

In the aid package, the Federate has already asked for more emergency funding from its "Protection Fund" that it keeps to help foreign nations in need. Stockpiled at over $10 trillion, just the immediate funding that can be accessed in 48 hours, the Federate has announced that he will be sending over $2.8 trillion to the Sarzonia, "that I hope they will use wisely."

Lewis took a step outside her office and saw Colwan sitting patiently. She shook her head and looked at her calendar, noting nothing there. She wasn't slated for any meetings, but she traditionally had a meeting with Sarzo at this time of the day. This time, however, Sarzo had called to tell her he was having lunch with First Partner Jay Tyler.

Now why didn't anyone tell me someone was here to see me, she grumbled to herself before turning with a smile to Colwan.

"My apologies, sir," she said. "I didn't realise you were in the building waiting for me. But no worries. Step into my office," she said, motioning toward the office door. She followed Colwan as he walked in. She knew that Colwan could tell her smile was forced, but she hoped he understood it was because of the country's economic plight that she was putting on her best acting performance.

"Please, have a seat," Lewis said. When Colwan took the seat directly across from her chair, she decided to take the chair next to his. She was aware of the power play that sitting behind her desk would have been and she deliberately sat at the seat directly across from his.

"So, what brings you here to Woodstock," she asked.

**************************************

Hedge waited nervously as the flight from Daurmont received its clearance to land at Woodstock International Jetport. Traffic in the Central Airport area in Saugerties was too great and with a foreign dignitary on the way to Sarzonia, they were going to land at the Jetport anyway. She looked around at the terminal, wondering if the City Council would ever approve a spending bill to expand the Jetport.

She shook her head. Projects like that one were among the first to get the axe in Sarzonia. The only construction projects that were being fast-tracked were considered Priority One contracts, usually military goods and supplies. The layoff of 10,000 workers, albeit white collar ones, had a ripple effect as Windham & Green Defence Industries laid off 1,400 workers across the spectrum of its personnel and also reduced the salary of its CEO by two-thirds. Memphis Mining announced it was lowering its earnings forecasts for the third quarter by 35 percent.

The Portland Stock Exchange dropped another three percent in active trading, though the safeguards shut the exchange at 3 p.m. before it could slip any further. All of that played heavily into Hedge's mind as the UKIN's foreign minister began his approach toward her.

The Parliamentarian
___________________________
Prime Minister speaks out over Seaburg debacle - Page 1

The Prime Minister entered the rapidly growing fray yesterday evening when, speaking from Empire Square outside Parliament, he called for 'reasonable discussion and review of the proposals on the table from all sides, unobscured by nationalist sentiment or intense patriotic feeling.'

The Prime Minister disputed claims that linking the SZ$ to the Kroner and Douro would not lead to an 'infringement of Sarzonian sovereignty' saying that, 'Such a linking of currencies would be entirely voluntary and can be withdrawn from whenever the Sarzonians wish. I do not understand why this is becoming such a problem.'

'The Sarzonian Dollar as it is is worthless. Sarzonia has a choice - they sit by whilst their economy spirals into collapse, blinded by a sense of nationalist feeling they have destroyed any entitlement to themselves, or they can take up this offer and rebuild the very bedrock upon which their nation is based. Nationalism at the expense of pragmatism is a luxury of propserous times,' he continued.

This is the first time that the Prime Minister has seriously criticised the Sarzonian Government since the Sarzo-Pacitalian rift some time ago, in which he played a part in reunifying the two then erstwhile allies. The firm tone is believed to be in response to a protest lodged against His Majesty's Government by the Incorporated Sarzonian Government following the Chancellor's stated support for the Seaburg conference.

The Prime Minister's speech ended with a warning for the Sarzonians, saying that 'Although a strong Sarzonia is in our long term interests, and aiding our allies is a moral imperative that I hold dear, in the short term it is perfectly acceptable for the survival and prosperity of the Praetonian state for Sarzonia to languish in economic and consequently geo-political obscurity.

'The Seaburg conference should not be seen as a threat to sovereignty, but the only real way that the Sarzonian economy can claw itself out of the mess it is in. Ultimately it is up to the Sarzonians to make a decision, and the outcome of that decision matters precious little to the Seaburg states at a fundamental level - it is they who are in this mess, not we.'

It is thought that the Prime Minister is mobolising the sum of his influence with the Sarzonians to get them to accept the recommendations of Seaburg, with the CPI making a similar statement to the Prime Minister's just hours after meeting with treasury officials. Sources close to the Prime Minister say that he is 'utterly committed to getting Sarzonia out of the depression, and he believes this is the way. He will fight as hard as is humanly possible to persuade them to accept it.'

In response to allegations that the position of his government was leading to a strain in Praeto-Sarzonian relations, the Prime Minister replied that, 'I will always give the utmost support for the Incorporated States of Sarzonia. Whether or not they choose to interpret my support as such is really up to them. I refuse to be cowed by opinions which I believe to be wrong, especially where the long-term strategic interests of both Sarzonia and Praetonia are concerned.'

Recent Sarzonian government statements indicate that Woodstock is yet to make up its mind on the proposals, but early indications are that President Sarzo as well as significant elements of the Sarzonian Parliament are opposed on sovereignty grounds.

___________________________
The face of Sarzonian democracy - Page 21

http://img.photobucket.com/albums/v387/Praetonia/PNN.jpg
President Mike Sarzo lashes out at an
anti-Pacitalian protestor in the Sarzonian
capital Woodstock yesterday.

President Sarzo was yesterday caught on camera punching a protestor in the face after he refused to abandon his attempt to set light to a Pacitalian flag, before setting Secret Service agents on the remaining protestors whilst making his escape. Mr Sarzo has not yet commented on the event, but the protestor concerned indicated that he would have liked to have brought a civil case against Mr Sarzo were it not against Sarzonian law.

Flag burnings have become commonplace in post-depression Sarzonia, with many choosing to blame Pacitalia rather than their own government, businesses or stock exchange authorities for their misfortune. The Imperial Government has refused to comment on the brawl, but it is believed that the Prime Minister himself has ordered his Government not to dwell on the brawl which many civil rights groups have condemned as 'a most unprofessional act.' The fate of the flag is as yet unknown.

[OOC: Sarz, sorry for using a picture of Prescott as Sarzo, but it was the only one I could find of a politician punching someone in the face.]

A fairly large package would arrive at the office of Janis Hedge, stamped on it would be a single Novacom Emblem and an address label as well as assorted postmarks, upon opening there would be a letter and 2 packages,

Dear Miss Janis Hedge,
In order to proceed ahead with our offer we invite you and Admiral Barbara Tucker, as well as any other personell you wish to bring to Technopolis to finalise details and make our offer a reality, enclosed you will find a set of one time use Transponder codes clearing your aircraft for entry into Novan airspace, as well as a disc that will ensure your safety within the unpredictable weather conditions inherent in Novacom Territory, it is quite harmless, it will however allow if needed for Novacom Air Regulatory Division to re-reoute your plane through a safer approach.

Please confirm your attendance using one of the communication encrypts included within, upon confirmation the meeting is shceduled for 10AM (Novacom Aligned Time) 15th Feburary,

Respectfully,
Beckett Jalenza
Novacom Economy Minister.

Indeed within the first package would be a delicately printed list of numbers along with a DVD marked clearly with "Transport Route", in the Second Package would be a large magnetic tape with a Novacom Emblem on one side and printed in blue letters on the other one word, Cyberax.

From the Georgetown Gazette (online)

A Potential Thaw Skids on Ice

Tetley Welcomes Warming But Is Cold to Pacitalians as “Terrorists”

By Anna Copland
The Georgetown Gazette, Imperium
________________________________________

Surprising many political analysts in the United Kingdom, the Sarzonian government offered a statement supportive of the United Kingdom in what some analysts think could lead to an eventually thawing of currently icy relations. However, at the same time Prime Minister Tetley publically distanced himself from such a position in lieu of what he called “ill-timed and inappropriate insinuations” regarding the Pacitalian people and their government.

Senior Vice President Mark Lorber publicly stated his government’s appreciation of remarks made by Chancellor McKay in a move that has stunned many in Imperium – even some within the Foreign Office. One anonymous source placed close to Foreign Secretary Emily Deveraux responded to the comment by stating that the Prime Minister found the comment “encouraging” and hoped that it could be the start of a “serious dialogue” between the two governments.

Concurrent with Mr. Lorber’s remarks, the External Affairs Officer of Sarzonia, Grant Haffner, emphatically stated that Sarzonia does not “negotiate with terrorists,” in a remark clearly aimed at the Pacitalian and Hamptonian delegations in Seaburg. Such statements come as anonymous sources from within the conference have leaked the possibility of demanding certain preconditions before economic aid will be released to Sarzonia.

The Sarzonian government views such preconditions and the necessity of their being enacted as a violation of their sovereign right to govern their own economy and financial situation. To this end they have seen elicited some sympathy from the Isselmere-Nieland delegation as well as from Chancellor McKay, in another astonishing move. Mr. Haffner went on to condemn the Seaburg Conference for not including the Sarzonian government in their discussions of how to best resurrect the Sarzonian economy, which by all accounts continue to fall as the nation continues to experience massive corporations shedding its workforce in desperate attempts to keep a positive cash flow.

However, Prime Minister Tetley made quite clear his position that the United Kingdom could not accept the “rash” and “reactionary” statements made by a man Lord Salisbury called “one of the most untactful diplomats” in the “top tiers of international relations.” The Prime Minister called Mr. Haffner’s comments inflammatory and called for an official apology and retraction over “unjustified” and “wholly baseless” assaults on the “character of a nation” that “is simply trying to lend a hand” in a situation where the offer of aid “could very well pull both into the deepening hole.”

And as Azazi-Sarzonian relations continue along their unpredictable path it remains to be seen how important both governments will see the comments; comments that appeared to call the Pacitalian people and government a nation of terrorists. It is worth nothing that the two nations were only recently considered inseparable allies and that in the wake of the collapse of Pacitalian-Sarzonian relations the United Kingdom has expanded its friendship and alliance with Pacitalia, a nation that the Prime Minister recently called the United Kingdom’s “best friend and strongest ally.”

From PNN.pc

http://i35.photobucket.com/albums/d197/Pacitalia/SarzoProtester.jpg
PNN coverage Sunday evening shows Sarzonian president
Mike Sarzo punching a protester after the 33-year-old attempted
to light a Pacitalian flag on fire. Sarzo, under the terms of the
Sarzonian constitution, is immune from prosecution.

Sorantanali demands apology for terrorist comparison
PM warns Sarzonian government that further remarks will stop Pacitalian aid attempts


by Mario Battistuta, Timiocato

Pacitalia's prime minister was breathing fire Monday, extremely angered after a Sarzonian official called the Pacitalian people "terrorists". The remarks come as Sarzonians continue to reject Pacitalian aid as an attack on their sovereignty, most notably a joint Hampto-Pacitalian proposal to fix the increasingly worthless Sarzonian dollar to the douro and krone in order to stabilise future economic direction.

Sarzonia's Deputy Senior Vice President and External Affairs Officer, Grant Haffner, lashed out at the joint plan, adding it up to "sheer economic terrorism". He continued by saying "[Sarzonians] don't negotiate with terrorists", and added his government "condemned the convening of a conference involving our nation's economy".

Constantino Sorantanali shot back quickly, calling the comments "irresponsible" and "highly detrimental to Sarzo-Pacitalian relations".

"Whatever diplomatic capital the Sarzonians had is, most certainly, now gone," Sorantanali said at a press conference, where the anger over the remarks clearly showed in his facial expression. "Insulting an entire nation in such a manner, especially without a precedent, is absolutely unacceptable. Any nation that still wishes to cooperate with a government that is clearly just out for blood, not caring about the consequences, will not be able to receive an effective audience with the Pacitalian government unless they make their intentions regarding this situation very explicit."

Sorantanali finished by emphasising "any nation that is willing to betray its allegiances to us and to our sound fiscal policy, which has been approved by actual experts, in order to appease a government that has lost its moral authority to govern by referring to an entire nation as terrorists, will not receive an audience at all. I warn with regret, but the stakes are becoming absolutely impossible."

The prime minister also made it clear the Pacitalian government would cease seeking aid options for the Sarzonian people if the government continued to engage in "reckless diplomacy" and continued to show it was "unable to control misplaced dissent against a nation that is innocent of all charges".

Agustinate of Foreign and Diplomatic Relations Dr. Rabastano Sancatto Serra was also questioning of the comments of the Office of Finance. "Questioning the integrity of Pacitalian democracy when Sarzonians are denied the right to elect their president, and denied some of the fundamental freedoms of a democracy, was most definitely a poor call. Furthermore, it was certainly odd to hear that comment coming from a department that should not even be concerned with diplomacy."

Dr Sancatto Serra said he was "shocked" at the comments of Mr Haffner and the Office of Finance, but "praising governments that ignored what has been proven sound fiscal policy in order to please the Sarzonian aim in this situation is deeply concerning to the entire Pacitalian government". He also said "it is concerning to us to hear ourselves compared to terrorists, as that is certainly an insensitive remark to citizens whose lives were strongly affected by the menace that was the [Gruppo Liberacione di Norte Pacitalia]."

The forex market once again responded negatively to the comments, as the Sarzonian dollar dropped to its lowest exchange rate ever against the douro - as of Monday's close it will take SZ$15.46 to buy one douro. The decline in Sarzonian dollar value had slowed after well-timed comments made by President Sarzo, but the rate of decline was sped up by three events: Sarzo's assault of a protester, the ratification of the domestically envisioned and, according to financial experts, poorly thought-out policy to fix the Sarzonian dollar to gold, and, the poorly-chosen words of certain Sarzonian officials.

In addition to the sharp decline in dollar value, Sarzonian gold commodity prices in Pacitalia also fell Monday, in response to both the ratification of the domestically envisioned gold standard policy and another three percent drop on the Portland exchange. The commodity's value fell nearly one half in one day of open trading, to Đ 89,19 per 31,1 grams* as of Monday's close. Further declines in the value of Sarzonian gold are expected in Tuesday trading.

[ * 31.1g is one troy ounce. Pacitalians do not use imperial measurements, so any commodity metals are listed per 31.1g, but it is essentially the same thing. ]

From Capital Cities Times

Lord Rosecrans Demands Retraction and Apology

A visibly angered Lord Rosecrans denounced several Sarzonian Government officials who labeled the Grand Duchy as "economic terrorists". The Sarzonian attack came as their Parliament and Presidential Administration continued to flounder in their efforts to prevent a full blown depression.

Deputy Senior Vice President and External Affairs Officer Grant Haffner denounced the Seaburg Conference as an effort of economic terrorism and a subversion of Sarzonian national sovereignty. The infamous Mister Haffner, who has no relevant academic or professional background, attempted to point to the lack of a Sarzonian representative to the Seaburg Conference as proof of his dubious claim. When asked about Sarzonian representation at Seaburg, Finance Minister Santiago said "If they would have asked, we would have considered."

Lord Rosecrans said to reporters that the latest remarks are, "evidence that the Sarzonian government resorts to its reactionary tendencies in all situations." He added, "If the Deputy Senior Vice President can't even show restraint in labeling a nation that's trying to save Sarzonia a 'terrorist state', how can they even begin to reform themselves?"

Newly appointed Foreign Minister Wolfgang Hayek sent the Sarzonian Government an official demand for an apology and retraction of the comments. "This is entirely unacceptable behavior for a modern democracy and a civilized nation," Minister Hayek wrote in the demand, "and if these actions continue by your government, the Grand Duchy of Hamptonshire will reevaluate its relationship with the Incorporated States."

While government officials are hopeful that the current rift can be healed, they are mindful of the current state of the Incorporated States. "They are a wounded animal biting at whatever comes near them. They just don't know any better" said a senior aide at the Foreign Office.

Dear President Sarzo

It is my pleasure to salute you, fellow leader, and to give you my best wishes for a successful presidency.

Recent news from your nation has come to my attention, and it occured to me that we could help each other a great deal. My nation has recently recovered from the absolute insanity of the previous government, but our taxes are still prohibitively high and we have little means to make proper use of the vast resources our country is heir to. Among other things we have discovered an estimated at least 5 billion barrels of oil. In fact it might be a greater amount but we need a nation which can support a higher tech level of exploration to help us. Perhaps we could work out some kind of arrangement. I have sent a copy of the facts and figures in an eyes only file for you to look over.

Looking greatly forward to communicating with you soon:

John Grimm
Protector, Holy Republic of Rosi Crucis
Crossville, Rosi Crucis

Portland Press-Herald

STATE OF EMERGENCY

by Jon Conway
Special to the Press-Herald

WOODSTOCK (14 February 2006) -- President Mike Sarzo today made his first public comments following the latest row involving his nation and those involved in the Seaburg conference, calling Deputy Senior Vice President and External Affairs Officer Grant Haffner's comments "indefensible" and announcing that Haffner would be sent on a leave of absence.

"The comments by Mr. Haffner have only served to anger countries that have expressed some desire to help us in our hour of need," a visibly shaken Sarzo said. I have discussed the situation with Mr. Haffner and have expressed my personal displeasure with his remarks and have advised him that any further transgressions will result in his being removed from his post.

"I apologise for the specific remarks he made; however, I wish to reiterate that our country takes any threats to its sovereignty seriously, be they real or perceived."

Sarzo stopped short of calling proposals to require Sarzonia to adopt certain economic measures before receiving even minimal aid "ignorant," which some expected the President might do, but he said, "if our reports on the events of the Seaburg conference are correct, they show a surprising lack of understanding of Sarzonian culture."

Reports of recent riots in Portland with some protestors burning the Pacitalian flag and shouting "death to Pacitalia!" have led Sarzo to declare a federal state of emergency. The continued violence led to Parliament passing a bill to invoke the Wartime Powers Act, which marks the first time Sarzonia has enacted the measure without a formal declaration of war.

"We are at war right now," Sarzo said. "That war is with ourselves. The Incorporated Sarzonian Army is now being tasked with maintaining order and preventing the onset of violent protests. I condemn the burning of the Pacitalian flag in the strongest possible terms and I ask that those responsible be prosecuted to the fullest extent of the law."

Sarzo reiterated that "protests in and of themselves are part of a democratic society." However, "violence can not and shall not be condoned, in particular when it is directed against people who should not be viewed as our enemies.

"The Pacitalian people have not shown any of vitriol toward us the way we have shown animosity toward them. I wish to reiterate that our government has a quarrel with their government. Our peoples have been friends."

"We can not say that our peoples are friends now," Sarzo said. "But that fault lies with us, not with the Pacitalian people." Following the speech, Sarzo announced he is resigning his titles of nobility from the Grand Duchy of Hamptonshire and he and Lieutenant President Nicole Lewis have vacated their Caposications awarded by Pacitalia.

"We feel very strongly that we do not deserve these," Lewis said. "Admiral of the Navy Marcus Patinkin has offered to vacate his own if the government of Pacitalia asks him to, but since he is not a member of Sarzonian government, he isn't as responsible for this crisis as we are."

Neville Colwan had seen better days, but then so had Sarzonia. Unease was evident upon his face before he began speaking, more so because the Lieutenant President decided to sit across from him. Strangely, he would have felt more comfortable treating the entire matter as an impersonal business arrangement. In spite of these misgivings, Colwan appreciated the kind gesture immensely, smiling politely as he thought of what to say.

He had been amazed by the furor wrought by the burning of Pacitalian flags. Before the gates of the Royal Shipyards, Anguistian nationalists had taken to burning the Union flag for several months protesting against the name of the Crown corporation and the percentage of "native Anguistians" on the firm's board of directors under the seemingly bored gaze of the local constabulary. "Misguided agitators," he had called such people, and Colwan felt that similar people, feeding off the misfortune of the recently unemployed, were at work here. Hopefully, his proposal would solve both of their problems.

"Madam Lieutenant President, you might find it strange that I have come to you with this offer, but I should wish that any approval or refusal for what I am about to suggest to remain behind closed doors to alleviate any concerns your government might have regarding further, erm, public displays." He hoped that the euphemism was not taken as a slight against the Sarzonian police or government. Not waiting for a possible negative reaction to the term, he advanced on to the main subject.

"Your Excellency, the Royal Shipyards would like to reacquire the Nicksia Shipyards at pre-crisis cost, including the cost to remove any such tooling and improvements the esteemed Portland Iron Works have made that might be required for specific PIW products. The RSIN proposes re-opening the plant for the construction of escort vessels, which, as you know, are consistently in demand."

[OOC: Apologies for not getting to Sir George and Hedge right now.]

Lewis smiled again, this time with a warmth that meant to assure Colwan that she was not trying a power play with him. The fact she sat across from him was intended to show her respect for a man who, like her country, had been through great difficulty. The shipyard closure that set off the Anguistians was on a much smaller scale similar to the difficulties faced by the Portland Iron Works.

She knew that the government was going to insist that the Nicksia Shipyards close down first. The famed shipyards had become too hot to handle for a company that was about to initiate mandatory furloughs of all employees for two weeks. Each employee would be directed to not take consecutive weeks and would lose half a paycheck from a two week pay period. In addition, employees would be directed to consult with their supervisors to minimise the impact on the office.

The company's generous benefits package, long the envy of companies throughout Sarzonia, would have to be revisited. It was clear that the government was looking to trim fat from the PIW's coffers and do so in a way that they could move the company off government receivership with assurances that the sort of behaviours that led to the investigation of the company's business practices would not occur. The government had been providing basic health care for all its citizens and company-provided health insurance filled in many secondary gaps left behind by the government.

However, that was going to change. For Portland Iron Works to continue to operate with some semblance of the independence it had before the calamitous events that led to the Panic of 2006, PIW would have to tighten its belt. One of the first things to go would be the Nicksia Shipyards.

"While it pains me greatly to part with the Nicksia Shipyards," Lewis began, "especially in light of our government's newfound mistrust of foreigners, I remember that Nicksia Shipyards was originally a RSIN partner shipyard. And in our financial state, I don't think we're in a position to refuse that offer. Especially since other offers we're getting are considerably less attractive than this one would be.

"I have a feeling Mike's going to need to approve this before it goes to the FCTC, but before I bring it to Mike's attention, I'd like to find out what turning over the Nicksia Shipyards to the RSIN would entail, both for us and for the RSIN. I want us to be fully aware of what's going to happen with a prospective sale of the shipyards before we proceed.

"Don't get me wrong, Mr. Colwan. I definitely trust you a damn sight better than I trust the Hamptonian government right now. I just need to be sure we've covered all our bases. Not doing so is what got us in this mess to begin with."

"I can understand that you and your government might have concerns regarding such a buy-out by a foreign company, especially a government-owned company," Colwan admitted. "Let me reassure Your Excellency that the Isselmere-Nielander government prefers to keep most of its Crown corporations, especially the Royal Shipyards, at arm's distance. Other than my firm's privileged position with regard to domestic naval contracts and its close ties to domestic naval planning departments, the RSIN is operated as a private corporation, and must follow the same requirements regarding commercial, social, and environmental policies as an ordinary private firm. Partnered and satellite yards can, to an extent, be operated as little parts of Isselmere-Nieland within a country, depending upon existing social policies. In other words, Your Excellency, the Royal Shipyards tend to follow the most, erm, beneficial policy scheme for our employees."

Colwan raised and opened his briefcase, handing Lewis an official company report outlining Works Administration departments in other countries. "As you can see within that document, our satellite and partnered yards have established schools that abide by local curriculum requirements and scholarships for further education, hospitals to serve the workers and their families, and health insurance benefit plans as well. Workers will also be paid a competitive wage, and there is no hindrance to local employees rising to senior management levels. The personnel, at least initially, will comprise a mixture of Isselmere-Nielander supervisors and management, along with skilled Sarzonian managers and forepeople, and an entirely Sarzonian workforce. The Sarzonianisation - if I might be so bold to use such a term - of the Yards would progress as familiarity with the RSIN's methods and practices increases."

With the briefcase still in his lap, Colwan gave the Lieutenant President another document - the contract that sold the Nicksia Shipyards back to Sarzonia. "In due course, once PIW regains its footing, I think it fair to say that the RSIN would be willing to return the Nicksia Yards for terms similar to those presented herein.

"I would, of course, like to inspect the Yards prior to any acquisition."

[OOC: I've asked people specifically NOT to make solely OOC posts on this thread. The next time someone makes a OOC post without any IC content, they're going to be asked to leave the RP. If you've got questions or concerns, that's what my TG box is for.]

Lewis nodded in an effort to assure Colwan that she wasn't dismissing his request. She then spoke up.

"I believe this would pass muster with the President or the FCTC," Lewis said. "The fact that the Nicksia Shipyards were once a part of the RSIN Corporation and were sold to Portland Iron Works during your company's troubles isn't lost on me or the rest of the Sarzonian Government. Besides," Lewis said. "This isn't a takeover of a company that's a major player in our economy. I'll certainly ask if this will pass muster. Excuse me for a moment."

Lewis stood up and paged Sarzo and Cheneyworth and informed them of the proposed terms. When they heard that Colwan had a contract selling the Nicksia Shipyards back to Sarzonia, Lewis heard the muffled discussion take place, then an in-unison "agreed."

"Looks like we have a deal," Lewis said. She looked at the text message from Cheneyworth. "The vote on the FCTC was 4-0 in favour with one abstention. I suppose I can sign the transfer of the Nicksia Shipyards to the RSIN. Of course you would be most welcome to inspect the shipyards."

Whether this deal marked merely another Band Aid or the true light at the end of the tunnel remained to be seen, but at least Sarzonia was getting something positive to stem the tide of sell-offs of the dollar and declining consumer confidence.

************************************

"We interrupt this radio broadcast for a special report."

"Oh fuck. Just as Brian Wilson is lining up a corner."

"Thirteen people have been arrested and eight injured in a riot outside the Portland Stock Exchange. Incorporated Sarzonian Army troops in full riot gear used water cannons and tear gas to disperse the crowd. "The 13 people arrested are being charged with creating a public disturbance under the Wartime Powers Act. During non-emergency conditions, this carries a fine of up to $1,000 Sarzonian, but in a federal state of emergency, it could include a two year jail sentence.

"We now return you to our regularly scheduled programme, already in progress."

[Sound of whistle].

"And that's it, the Stars have been eliminated from the World Cup in the Round of 16 for the first time since World Cup 21. The final score from Oliverry, Hockey Canada 1, Sarzonia 0. We'll have more after this."

"Goddamn it. Bad day all around."

OOC: Since I can't be part of Hamp's 'wow-amazing-cool-and-no-Guffingford' Seaburg conference, I'll post some communique's here from Guffingford to some other participants. Kinda short and pointless, only to let the big fish know what I'm gonna do.

IC:
The Presidential Office, Hoogenbosch

Wow, what a great day for news! Not a damn thing that catches my interest. The President of Guffingford threw down the papers on an already steadily growing stack marked 'to do', and promptly ignored it. Finances he thought, was something meant for Sweet, not me. Okay, what's left for me to do. Pondering about political stuff? How can I think about politics when there's only a parliament in Guffingford which dances to my tune?

The whole thing between Sarzonia and Pacitalia seems normal considering the whole situation. However, it seems to me this is an excellent oppertunity to create a better relation between Guffingford and Pacitalia. Business or just politics? There must be some way to benefit from this, or not? Guffingford did not try to help the Sarzonian economy. Pacitalia didn't make a positive move towards a happy outcome either. I need to exploit that, but a mere political statement won't do... Now this is worth pondering about.

*****

'Sarzonia is a great place to do business. Never had any trouble with people who went down there.'

'You probably heard the governments plans haven't you? Instead of taking a break from regular politics and try to start up some positive political ties with Sarzonia, but no... Instead Watermont wants more of the same and he made an announcement saying Pacitalia did the right thing, lavish praise, praise praise...'

'How unexpected' the man scoffed. 'It certainly comes as a shock to me. A shocking development indeed.'

'Now that you mention Pacitalia, it is also a great place for business. Never had any trouble with people who went over there...'

Woodstock Daily Mail

Foul play alleged in stock crash

by Greg Bonner
Daily Mail Staff Writer

PORTLAND (23 February 2006) -- The computer malfunction that caused the Portland Stock Exchange to lose 16.2 percent of its value on Black Monday was not a defect in the system, police investigators and Federal Bureau of Investigations agents said after an investigation that took longer than most of the higher ups in the organisation projected.

"It's looking rather conclusive that this wasn't some random malfunction," said Portland police lieutenant Cliff Dillon, the lead investigator on the case. "There were too many events happening at once for this to be a problem with the system itself."

Dillon wouldn't elaborate on the exact events, but said the system was hacked and the safeguards used to shut the Portland Stock Exchange after a five percent drop in value were disabled.

"Whoever did it knew what he was doing and wanted to make sure the damage was severe," Dillon said. "I.T. spent a lot of time on this to make sure that the PSE's encryption codes were kept up to date and were strengthened to make sure this doesn't happen again. They tell me they've built in additional protections so that not just anyone can override the failsafes."

The upgraded security worked Thursday as a stock market drop caused the PSE to shut down at 3 p.m. after a five percent drop. Reports of possible sabotage initially caused panic among already rattled investors, but stocks increased 0.7 percent yesterday in moderate trading.

Dillon wouldn't speculate on the source of the sabotage, but said "no possibilities are being ruled out. We think it's most likely an attack by a political enemy of the Incorporated Government and the FBI has taken this on as a case of suspected terrorism. By whom, we just haven't been able to pin it down yet, but it seems to be a case of information warfare."

That son of a bitch.

Sarzo fumed as he listened to the Isselmerian-Nielander prime minister outline the details of the Paci-Hamptonian proposals which amounted to demands that Sarzonia accept a tie-in with the douro and the kroner before the nation received even a penny of aid. However, it got worse from there. When he heard the plan to essentially demand that Sarzo call for a Presidential election – in direct violation of the nation’s constitution – he got even angrier.

That motherfucker is going to pay for this bullshit, Sarzo thought. He angrily slammed his right fist onto his desk and glowered toward the shut door of his private office. Not even Tyler was in the office, so no one had to be subjected to Sarzo’s tirade.

The short of it was that Sarzonia needed financial aid if it was going to begin an economic recovery sooner, rather than later. However, as Sarzo began swirling the facts in his mind, the more obvious it became that Pacitalia and Hamptonshire were making demands that were obvious affronts to Sarzonian sovereignty. That had to end now.

Before Sarzo could call the Press Office, he heard a tap on his door.

“What!” Tyler poked his head in gingerly, as if he were expecting Sarzo to bite it off like a ravenous alligator.

“Is something wrong?”

“What isn’t wrong Jay,” Sarzo asked. “The Seaburg conference is about to demand that we tie the dollar to the douro and the kroner.”

“What’s so bad about that? If we do that, we immediately restore lost value to the currency.”

“That’s just it, Jay. It’s not a suggestion. It’s a demand. It’s a condition before they’ll even give us a penny.” Tyler leaned back and grimaced. That wouldn’t go over very well. It would especially not go over very well in Sarzonia.

“And get this,” Sarzo said. “They’re also calling for me to hold presidential elections. They’re claiming we’re not a real democracy if we don’t. And they criticise us for allowing their flag to be burned.”

“What are you going to do?”

“Demand they get the hell out of the Woodstock Pact. If I have to break the charter, I’ll do it.”

“Now wait a minute, Mike.”

“Jay, it’s all but a declaration of war.”

“Mike, if it’s a declaration of war, it’s an economic and diplomatic war. We’re not calling up troops to fight the Pacitalians or the Hamptonians. Nor should we.”

“Then what do you suggest?”

“For one thing, we’ve gotten into this mess in part because we haven’t thought things through. The first thing you should do is rightly blow the lid off this. If I were you, I’d remind Pacitalia that our nation’s constitution has a codified procedure for calling elections when you leave office. I’d also inform them that their claim of democracy while blasting us for flag burning is…” Tyler began.

“Hypocritical,” Sarzo snapped. “They claim to be the true guardians of democracy, yet they attack people for burning their flag. What the fuck does that tell you about that asshole Sorantanali?” Tyler scowled slightly at the interruption and spoke in a tone that told Sarzo don’t do it again.

“Duplicitous. I would remind the Pacitalians that burning the flag is a longtime expression of dissent against a government and that any nation that bans it, if that’s what they suggest we do, is making a mockery of freedom of speech. That has been a hallmark of Sarzonian democracy for years. Even when we’ve invoked the Wartime Powers Act, we’ve towed the line on protecting our people’s rights.”

“And what about the Hamptonians?”

“I’d remind them of their distasteful conduct in the blockade of Praetonia.”

“And sever relations?”

“No, Mike. Let them be the bad guys. Recall our embassy and consular staffs. If they want to escalate it, let them. You’ve already made enough of a statement by vacating your titles of nobility. Let that stand on its own.

“I think if you project a moderate response to those actions, that will win you more respect than lashing out will. Besides, the Seaburg conference has given us a good idea of just who our real friends are.”

Sarzo sighed.

“Thank you Jay.” He turned to his computer monitor and began typing. When he was done, he took the printed document to the Gray House press office.

That Sorantanali ought to go back to being the premerati of Sambuca. He’s no Timotaio Ell, Sarzo thought in the second before he heard the words he always hated.

“And you’re on.”

“My fellow Sarzonians,” he began. “We have been informed of the goings on of the Seaburg conference. According to informed sources within the conference, the nations of Pacitalia and Hamptonshire have been pushing a measure that would tie a condition that Sarzonia be required to accept a tie in with the douro and the kroner before we would receive even a penny of aid.” Sarzo waited for a moment to let the information sink in before he continued.

“In addition, the Pacitalian government delegation has pushed forward a ‘recommendation,’ as they seem to be wording it that I violate the terms of our constitution and call for a Presidential election in Sarzonia in yet another shot at our national sovereignty.

“Let’s call this what it really is, this demand on the part of the Pacitalian government on top of their criticism of our nation for allowing their flag to be burned in protest of their government’s political and economic actions toward our nation shows them to be highly duplicitous.

“The burning of a nation’s flag is an act of dissent that citizens the world over have used for years. It is part and parcel of a truly free and democratic society to allow such a display of dissent against one’s own government or the government of a nation against whom you wish to redress grievances. That is why the burning of a national flag is not prohibited by our Constitution and why I will or would veto any attempt to add such a ban into our Constitution.

“If the Democratic Capitalist Republic of Pacitalia truly values the freedom of expression and democracy they claim to hold dear, they will see these proposals for what they are. We can only hope they will be as enlightened as we have long viewed them to be.

“With respect to the Hamptonian government, we find parallels between their government’s decision to invoke a quarantine of our loyal allies in the Democratic Imperium of Praetonia following the terrorist strike by Jaxus Nine. Their attempt to paint their nation as a bellwether of safety, security, and human rights in light of their history of actions that could directly lead to the loss of millions of Sarzonian lives calls their commitment to the principles of freedom and democracy into question.

“To express my government’s extreme displeasure with their actions, I am recalling all Sarzonian diplomatic and consular staffs within the Grand Duchy. In addition, all civilian and military personnel with Sarzonian citizenship must depart the Grand Duchy or her territories within 72 hours. Finally, I am calling upon the government of the Grand Duchy to voluntarily withdraw any and all military assets from Sarzonia or her sovereign territories.

“Make no mistake. The Incorporated States of Sarzonia will recover from these difficult economic times. The only question about or recovery is not if, but when. When we do, we will be stronger than ever for having gone through adverse times as one nation, indivisible. Whether we do so with the help of our friends depends partly upon the actions of those who are our true friends and allies.

“But it also requires all of us to make difficult decisions and to work to bring ourselves out of this morass. If we work together as a people united in strength and determination, there is nothing we can’t accomplish.”

Sarzo punctuated the last words with a look of determination that was the last vision people saw when the camera had until it stopped rolling.

From PNN.pc

http://www.rainews24.rai.it/ran24/immagini/casini_camera3.jpg
Prime Minister Constantino Sorantanali slammed
the "wild, rash arrogance" of the Sarzonian gov't
after President Mike Sarzo announced in an on-air
speech that he was severing ties with the Grand
Duchy of Hamptonshire in response to developments
at the controversial Seaburg Conference.

Sorantanali, insulted by Sarzo's words, brings down the hammer
Urges other nations to follow lead, warns Sarzonia "will pay a huge price for incompetent decision-making"

Prime Minister Constantino Sorantanali was visibly outraged by the Sarzonian president's move to cut ties with the Grand Duchy of Hamptonshire, calling it "yet another counterproductive move that only harms the Sarzonian people in the end and shakes that nation's faith in its people".

The prime minister also enacted retaliatory economic moves, saying that "until the Sarzonians begin acting maturely and responsibly in this situation, and accepting that other countries have genuinely beneficial solutions to their self-inflicted problems, this will not stand."

"The Sarzonian government is showing a total lack of ability to govern their own people, to think clearly, to act multilaterally, to work positively and to use diplomacy," Sorantanali said in response to the Sarzo speech. "Recalling diplomatic staff is a totally unacceptable move in terms of where we want to go with the recovery process. If President Sarzo is deliberately throwing salt in the wound, I ask him to come forward and say so. Stop hiding behind your desk, and start being a leader."

Sorantanali also slammed Sarzo's comment that Pacitalia was not a real democracy because his government "was apparently criticising the Sarzonian government for letting our flag burn".

"That sort of despicable vitriol gets you nowhere," Sorantanali replied. "Burning a flag is a perfectly legitimate form of protest. People do it all the time in Pacitalia, so seeing it happen somewhere else does not bother me or my government in the slightest. Let's get serious, ladies and gentlemen. Do you really think my government will seriously take into account criticisms of our democracy from a de jure dictatorship?"

In response to the "intolerable" comments of President Sarzo, Sorantanali has been forced to follow in the footsteps of his predecessor by enacting economic punishments against Sarzonia. He has ordered Pacitalian ships and civilian aircraft carrying goods to Sarzonia to turn around and head for their home ports, and enacted an immediate 40 percent tariff on Sarzonian goods.

Sorantanali is also in talks with private banks to freeze all Sarzonian assets, and has consulted with Agustinate of Foreign and Diplomatic Relations Dr. Rabastano Sancatto Serra, who is reportedly going to place Sarzonia on the "Enemies of Democracy" list. Dr. Sancatto Serra is also tendering a Pacitalian resignation from the Woodstock Pact, which will reportedly state clearly "the Pacitalian government does not see how it can logically cooperate in a pact claiming to defend democracy when it is headed by a dictatorship."

Another possible scenario may have the Pacitalian delegation tabling a resolution asking for members of the Pact to eject Sarzonia, on the principle that a dictatorship should not be allowed to participate in the Woodstock Pact.

Sorantanali ended by saying, "the whole world is falling down around the Sarzonians now. And whose fault is that?"

http://img.photobucket.com/albums/v114/hamptonshire/NS%20Pictures/rosecrans10.jpg
Lord Rosecrans, speaking from the Cicero Institute,
addresses the world in a primetime address. He
responded to comments made by Sarzonian
President Mike Sarzo earlier in the day.

Transcript:

It is wholly unfortunate that President Sarzo and the Sarzonian Government have taken their most recent actions. Instead of focusing on the root of the problems of the Sarzonian economic collapse, they have found scapegoats on whom they try to thrust the weight of the world upon. In their frustration and disorientation they are lashing about trying to find their way.

Sarzonia must come to realize that a nation that must rely on the goodwill of its friend and allies for its continued survival is in desperate straights. Time and again when the Incorporated States have run into trouble, friends and allies have been there to bail it out. Now when the trouble is the most severe and when those friend and allies still wish to help, with due stipulations placed upon aid, your government demands virtually free assistance. If a man were to be on the verge of bankruptcy and financial ruin, a bank would not lend him money without conditions.

It is true that some of the ideas being proposed in the Seaburg Conference are rather controversial. However, and I must stress this, they are only ideas at this point. No official list of conditions has been issued, no documents printed ready for any signatures. Instead of trying to compromise or even trying to discuss these ideas with the Seaburg participants, the Sarzonian government has outrightly rejected the very idea of any sort of qualifications attached to potential aid packages. With tens of trillions of dollars in the queue waiting to be sent to the ailing Sarzonian financial markets, President Sarzo and others have refused to even entertain the notion that changes need to be made. If the current system was fine as it was then this economic collapse would not have happened. History has proven this system broken.

In his address President Sarzo mentioned an incident, several years past. It is an entirely faulty example with no relevance to this situation whatsoever except to highlight the aggressive nature of the Sarzonian government. The quarantine instituted was done under the aegis of the Interior Ministry of the New Commonwealth, the regional government that both Hamptonshire and Praetonia belonged to at the time. The quarantine was necessary to protect the tens of billions of innocent lives of those that lived in the New Commonwealth. It was reluctantly done by the Grand Duchy but it had to be done, it was our duty. If Sarzonia is as great a nation at it, at times, claims to be then it should know the burden of duty. There are consequences to every action, some good and some bad. The Grand Duchy is willing to make the tough and unpopular decisions that preserve democracy and civilization. To date, I can think of little to show of Sarzonian initiative in the same area.

The Sarzonian government has the right, and responsibility, to voice and show its disapproval with the actions of foreign governments. They have chosen to, in theory if not in fact, sever diplomatic relations with the Grand Duchy of Hamptonshire. Sarzonian diplomatic staff and private citizens have been "ordered" to leave all territories of the Hamptonian League within 72 hours. I, along with all Hamptonians, am deeply saddened by this tragically misguided act. However, we will not be following the Sarzonians' lead. Our embassy and consulates will remain open and our personnel will stay on the grounded until the Sarzonian government officially asks us to remove them. I have ordered the Royal Armed Forces units currently deployed within five hundred miles of the Sarzonian coastline to withdraw to the nearest Hamptonian or allied military base. We will maintain this five hundred mile zone that will not be violated by the Royal Armed Forces. While President Sarzo may no longer be keen to keep open the lines of peaceful dialogue, it is my intention to stay the diplomatic course until the last possible moment.

Sarzonian citizens and nationals have also been ordered by their government to leave the League within the next three days. While forcing citizens to move against their will may seem undemocratic and, dare I say, authoritarian, we will not officially protest this move. We will, however, grant immediate amnesty to all Sarzonian citizens and national that wish to remain in our territories. Sarzonians unable, but willing, to leave the Grand Duchy before the deadline may contact the Foreign Ministry and it will provided all interested with free passage to their nation of residence or citizenship.

It is an undeniable fact that unless lead into disaster, the Incorporated States will emerge from this economic collapses stronger than it was before. What is also requires is a realization that the past order has partially failed the Sarzonian nation. No one person, no one nation, can stand alone in the dark night and face all the terrible that is out there in the world. Only by standing together, by leaning on the shoulders of your friends and realizing when to admit that one has made a mistake can any advancement be made.

OOC: Hamp, I recall you said that ignores do not get in the way of any RP. Well, here's your chance to prove it.

IC:
From the Hoogenbosch Berig, a Guffingfordian newspaper...
Hoogenbosch Berig

President Watermont: unacceptable and intolerable acts by the "corrupt" Pacitalian regime, acts that will only increase tensions, almost a game he planned prior to the Seaburg facade. Many insiders comment: 'it certainly smells like foul play around here, something fishy's going on. That's for sure.' 'Mr. Ell would've never pulled a cheap scam like this on Sarzonia.'

Hoogenbosch, today -- Economists and political analysts around the globe monitor the developing political powderkeg between Sarzonia and Pacitalia anxiously, and heavy speculation about the possible outcome endures. Many claim it will end as suddenly as it started, but others tend to think less positive. Such is Guffingfordian President Watermont, who opposed the Pacitalian plans from the beginning. He comments:

'Pacitalia and Hamptonshire are clearly only in it for the money. Business deals, quick cash and putting Sarzonia in financial chains is all part of a much larger plan. While I cannot give a reason that supports my suspicion, I sense that the recession was the first - and quite likely the best - oppertunity that came across the two symbiots [Hamptonshire and Pacitalia] in a while. For us, and I speak on behalf of the whole parliament, I say this is an excellent oppertunity to find and seek new allies. Our relations with Praetonia are improving, and have improved vastly over the years. I say we can make a first sign as Guffingford by denouncing this unilateral treaty and to present Guffingford from a different side.'

These words have not fallen on deaf ears in Guffingford, and many a banker and invester praised Watermont for his wise new policy direction he's taking. President Watermont also talked about ''substantial financial aid, and other programmes that will really help the common Sarzonian, not the CEO or CFO". Critics claim the President only says this to increase his international status as a peace-maker, but many oppose this view. "A legitimate and honest attempt" a member of the People's Assembly called this, adding: "I am fully confident Sarzonia will pick this up as a positve sign, and we are more than willing to back our words with hard labour and investment."

Furthmore, the President has decreed that the ban on non-financial Sarzonian products to be lifted at once, and Sarzonian citizens are free to enter and leave Guffingford again, provided they are in possession of the necessary visa for tourists or businessmen/women. The President notes, however, that these are merely the first steps to what he calls "thawing relations between various nations". Hoogenbosch Berig will keep you up to date as the story continues.

[OOC: The following was transmitted by secure communications to the governments of Hamptonshire, Pacitalia, and Sarzonia and delivered by official representatives.]

Official Communiqué from His Majesty's Government

Your Lordship and Excellencies,

This day brings great sadness to my heart, indeed to the hearts of all members of His Majesty's Government, one which sees bridges burnt and declarations made that seem to cast irretrievable doubt upon old alliances and friendships. Let it not be so.

On behalf of His Majesty, I have sent the Minister for Foreign Affairs and International Development, Sir George Fredericks, to Woodstock to propose an alternative fiscal linkage, of attaching the Sarzonian dollar to the lethse. Although the Isselmere-Nielander economy will have to bear the burden of the Sarzonian depression, together I hope both of our economies shall soldier through.

It is a cruel thing to impose restrictions, indeed unconstitutional demands, upon an ally. I take heart from His Lordship's statements that matters discussed at the Seaburg Conference were proposals and were not to be acted upon by fiat by certain representatives within that Conference.

However, I do not view all members of the Conference to be acting with such enlightened principles in the interest of the Sarzonian people, but more for personal gain, perhaps upon some political vendetta. It is not for me to say what the motives of such people are, or by what right they arrogate to themselves the liberty of defining democracy. In light of such occurrences, I must request the withdrawal of the Minister for Economic Affairs and of the Governor-Governor of the Union Bank from the conference proceedings. Should the Conference be willing to return to a discussion of possible remedies to the Sarzonian economic crisis, the Isselmere-Nielander ambassador to the Grand Duchy may be contacted in the Hamptonian capital.

Thus I am left with one final matter. The inflammatory remarks and threats made by the Pacitalian prime minister, Mr Sorantanali, regarding the removal of Sarzonia from the Woodstock Pact as an undemocratic entity shows a distinct disregard for the constitution of several states within that Pact. Should Hamptonshire, Isselmere-Nieland, or Praetonia be ejected next from that body for being constitutional monarchies? Or perhaps the removal of a constitutional head of state is far too much to ask for a few burnt flags and singed egos.

Sincerely,

The Rt. Hon. Geoffrey Middleton, MP, CS, PC
Prime Minister
UKIN

_____________________________________________________
Office of the Lord Chancellor - Public Clarification

Inquisitive readers,

It has come to the attention of the Office that some substantial domestic, Commonwealth and international confusion has arisen with regards to the ability of the Incorporated Sarzonian Government to unilaterally and arbitarily legally eject nations from the Woodstock Pact of nations. As the Office which originally drafted the current charter (which may be viewed on Schedule 1 (http://s4.invisionfree.com/Woodstock_Pact/index.php?showtopic=279)), we seek to comprehensively dispell confusion and state the truth on the true legal power of the Incorporated Sarzonian Government.

Under the terms of the current charter it is easy to see and therefore declare that no member state of the Pact currently has any greater power than any other, and no member currently possesses the power to unilaterally expell any other. The Incorporated Sarzonian Government holds no greater power in the Pact than any other nation and, regardless of any other state of affairs that may once have existed, the Sarzonian Executive does not possess the power to do what has been threatened. Any move by the Incorporated Sarzonian Government to expell any other member state of the Pact can be safely ignored as illegal and not based in any kind of Constitutional fact or power.

It is, however, possible for a member to be expelled conventionally through a 75% affirmative vote of the Pact as a whole. Furthermore, it is possible for the Incorporated Sarzonian Government to ammend the charter to grant the founder greater powers, although this would require a unanimous vote in favour. It is the current position of the Crown to block, to the best of the ability of the nation & Commonwealth, either move against any current memberstate of the Pact.

The Parliamentarian

_____________________________________________________
'Utter Lunacy!' Declares PM

In an impassioned display of oratory, the Prime Minister of the nation & Commonwealth, the Rt. Hon. Sir Tiberius Polax, MP, scathingly attacked the Sarzonian, Pacitalian and Hamptonian Governments.

Speaking in The House yesterday, the Prime Minister declared that 'The Incorporated Sarzonian Government has proved the largest obstacle to the prosperity, power and economic stability of the nation and people of Sarzonia since the foundation of their state many centuries ago. I cannot think of any worse example of economic mismanagement in the history of that great nation.'

The Prime Minister continued by demanding that economic liberalisation took place immediately 'if there was to be any real future for the Sarzonian economy,' explaining that, 'Current protectionist attitudes are blocking foreign investment and regulation is stifling and destroying already floundering Sarzonian business. It could well be the beginning of the end for Sarzonia as an economic leader, and the rot set in long ago. Difficult decisions have to be taken if disaster is to be averted, and the Incorporated Sarzonian Government has to take them before it's too late.'

The Prime Minister's wrathful gaze was not, however, fixed solely upon the Sarzonian government. The Prime Minister branded what he called 'some dangerously economicly Imperialist' elements of the Seaburg conference for 'harmful mishandling of the Sarzonian situation which has lead only to the Sarzonian Government seeing us as aggressors and Imperialists instead of concerned friends and helpful allies.'

He said that the 'Silly and utterly pointless yet seemingly unstoppable barrage of insults between the Sarzonian and Pacitalian Governments which has been continuing now for a worryingly large amount of time, even since before the Sarzonian Depression even began.' The Prime Minister is thought to be unhappy with every nation's handling of the situation including, it is thought, his own.

Speaking to a select group of CPI Officials, the Prime Minister is reported to have said that he was 'disappointed with the failure of the Praetonian delegation to the Seaburg Conference to restrain attempts to present the 'tied aid' as a kind of economic threat. At the time we were so pleased with the deal on offer that we overlooked the presentation of this deal. The Pacitalian Government especially appears to have gone a little overboard with pressing the deal. We will not allow it to happen again.'

Controversially, the Prime Minister has hinted that he may withdraw Praetonia from the Seaburg proceedings and position the nation behind the Guffingford proposal for sustained financial aid. Speaking at a press conference this morning, the Prime Minister said that 'The Guffingford deal is beginning to look more and more appealing. The Sarzonians have probably left it too long to create a stable fiat currency, at least in part because of wranglings over unnecessary sovereignty issues.' and that 'Seaburg is increasingly being seen as an anti-Sarzonian Imperialist convention. Regardless of the truth behind this, we cannot be seen to be opposed to the Sarzonian government and people, even if we end up proposing a very similar solution.'

"Admiral Tucker?"

"Janis, I don't have time for a social call. What is it?" Hedge grimaced at Tucker's curt response, but realised the stress of dealing with the spectre of seeming to be the source for the Panic of 2006 wasn't exactly the bext elixir for someone's mood.

"Have you seen the invitation from Beckett Jalenza?"

"Who?"

"The Economy Minister of Novacom, that's who," Hedge said. "They're offering us a deal."

"No takeovers, hostile or otherwise," Tucker snapped.

Someone's got a bug up her ass, Hedge thought. Poor damn bitch.

"That's not the purpose of the meeting Admiral[/i], Hedge said. "What they're proposing is that we work with them on some projects and that will give us some financial support to help us inch our way out of the recession. But here's the catch: You're going to have to go with me to Novacom. And we can't get there any other way but Sarzonia Five."

Despite Tucker's best efforts to keep her reaction under wraps, Hedge could clearly her spit the word "shit," and chalked it up to Tucker's known hatred of flying.

"Do you want to help us get out of this recession or not," Hedge asked, turning Tucker's hostility back on her. "Because if you don't, I'm sure I can convince the President that your services are no longer required."

"When's the flight," Tucker said quickly. She knew PIW would have to make some hard sacrifices if the economy was ever going to recover. She figured talking a long flight to a strange country was the least of the sacrifices she'd be asked to make.

***********************************

"And in financial news, the Portland Stock Exchange finished a busy day of trading down a fraction of a point on news of a sharp increase in tariffs by Pacitalia. The stock market closed at 53,108.2 after yesterday's close of 53,108.8 points."

"Lisa!"

Bridger looked out of the corner of her eye as Trish Brocail began the weather report. She grimaced at the report, but it at least was a discernible answer to speculation.

Circumstantial evidence pointed to the stock market crash being anything but a simple computer malfunction, but until the police or the FBI could come back with anything, tongues were wagging about all manner of possibilities. Some of that rumourmongering even found the Gray House.

"I'll bet it's those damn Pacitalians," Vice President for Employment Services Arthur Trautwig said.

"That's preposterous," Lewis said. "There's no way the Pacitalians could be committing an act of terrorism like that. It's got to be the RSTF."

"Are you so sure Nikki," Trautwig said, seemingly in an effort to get under Lewis's skin, knowing she hated all but her closest friends calling her Nikki. Even though she and Sarzo were close and she made it known she didn't mind if he called her Nikki, he always called her Nicole. It was the name he'd gotten used to. "I wouldn't put it past those fucking wops."

"Enough," Tyler shouted. "That's quite enough Art."

"What the fuck can you do about it little man," Trautwig said.

"Doesn't matter what he can do, it's what I can do that counts."

Trautwig jumped. He saw the one man who could do just about anything short of kill him.

"Mike, I."

"Save it Art. One more word of disrespect to my partner or my lieutenant president and you'll be sent packing. Capisce?"

When Trautwig began to open his mouth in protest, Sarzo walked up and intoned angrily. "Do you understand little man?" Trautwig sighed. He knew Sarzo had the authority to fire him on the spot and wasn't afraid to use that authority. The trail of former intelligence chiefs and dismissed cabinet officials spoke for itself.

"Yes, sir," Trautwig said, suddenly humbled. "But we shouldn't dismiss any possibility."

"Indeed we shouldn't, Artie," Sarzo said, drawing a scowl from Trautwig. Like Trautwig with Lewis, Sarzo knew what buttons to push with Trautwig. "But let's be realistic. The Pacitalians have at least some grasp of sublety, even though they didn't seem to demonstrate that with Sorantanali's latest statement. They'd prefer to do something far more passive aggressive than that. I'll bet it's the Doomies."

With that, Tyler tuned on the tele and Bridger's face was on the screen instead of Lou Broadnax and his sports report.

"This just in, Portland police and the FBI broke into an abandoned warehouse just outside the city limits and made several arrests in what PPD officials are calling the biggest bust in Sarzonia's war on terror. They arrested several members of the Restore Sarzonia Task Force." As Bridger intoned that info, Lewis looked at Trautwig with a "told you so," glance.

"After several hours of what some FBI officials are calling "intense" questioning, we have reports that the leader of the RSTF cell has confessed that they planned the attack with help from Doomingslandi conspirators." Sarzo looked at Trautwig with the same sort of glance Lewis just did.

"Police have also taken several items into custody that Department of Defence officials have identified as Doomingslandi equipment."

"Figures!" Tyler said.

"The RSTF? But I thought Allenby was behind them?"

"We also thought the end of the Second Civil War was the end of them too. Obviously, they're not completely out of the picture just yet."

Seaburg, Grand Duchy of Hamptonshire

Chancellor, I have the Prime Minister for you.

McKay had excused himself from the conference when his lead staffer informed him of the fireworks launched from Sarzonia. Without a word the same staffer had directed him to a secure line so he could make contact with Tetley.

Good afternoon, Mr. Prime Minister, how is Reloria?

Very nice, Stephen. Next time you have a chance I’d advise you to swing out this way, a very fine country indeed. However, I imagine you didn’t call for a travel report – I take it you’d like to discuss the, shall we say situation.

The two men chuckled at the mild assessment of the deteriorating crisis. Yes, Mr. Prime Minister, that is why I have called. What sort of response do you want to prepare?

We have been presented an opportunity that we ought to seize, Stephen. None of the other governments have brought the United Kingdom into this most recent discourse – and with good cause I believe as we have thus far played our cards fairly close to our vests, excepting your well-calculated gambit. Very well played, by the way Stephen.

Thank you, sir.

However, the international media and leaders of the involved nations have preferred to exchange blows within their clique and we remained relatively unscarred and it this obscurity to which we have been relegated that I intend to seize upon. As we speak I have Victoria polishing some talking points for me and I intend to speak to the press before leaving the airport to meet with the Matriarch. In the meanwhile, Stephen, continue to quietly press our case in Seaburg. I think it plainly obvious that we have a lot at stake here, though most of it remains far from being directly under threat. Continue to play the game as you have been and I believe we shall arrive at the end with an outcome favourable to the United Kingdom and her people.

Very good, sir.

Now, if you’ll excuse me, Stephen, I have a meeting with an official from the host country and a small speech to give.

The two enjoyed another brief laugh as both knew that Tetley’s more spur-of-the-moment speeches tended to be longer rather than shorter. Nonetheless his words carried a great deal of weight in the UK and within some international circles and as such the speech would lead the news programmes in the UK. As the laughter subsided McKay wished Tetley the best before the Prime Minister cut the connection.

Official Transcript
Office of the Prime Minister

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Location: Mukasus City, Constitutional Matriarchy of Reloria

[Lord Salisbury]: My fellow citizens of the United Kingdom, and all those around the world who share both the hopes and fears of the people I lead about the crisis in Sarzonia, there must be no doubt, no hesitation, and no faltering in our resolve to help the innocents affected most directly by the dreadful circumstances that continue to play out before us, namely the people of Sarzonia.

In the past year His Majesty’s Government, under my explicit direction, has made quite clear its objections to the policies of the Sarzo Administration. Most importantly, I harbour doubts about the commitment of the Sarzonian political institution to Democracy, a fear stemming from the unchecked powers granted to the first president of the Incorporated States, Michael Sarzo.

Understandably the international community, not to mention the Sarzo Administration, Sarzonian press and general public, finds the comments made by Chancellor McKay and Prime Minister Sorantanali about the indisputable fact of a technical Sarzonian dictatorship both shocking and unsettling. However, all nations and all persons must, at some time or another, face the devils they hide so discreetly, so carefully from the rest of the world. The largest such devil is that which we call Sarzonian democracy.

I remain firmly behind my position that the world must revisit Sarzonian democracy before we can realistically expect to see any significant improvements in Sarzonia. Strength, be it personal or economic, develops from facing and overcoming those conflicts that push all of us to our absolute limits. Democracy embodies that drive to betterment far more fully than dictatorship as the push and pulls between great leaders forces a nation to rethink its collective outlook and way of life through free and fair elections. Contrast that to dictatorship where the rule of one man or woman forces a nation to blindly follow what one person perceives as the best option. Of course in the rule of the many there are faults and failures to which all democracies must admit top among them being that before a consensus born out of elections there may very well be a period of indecision and inaction. However, in dictatorship a state runs the risk of blindly following the erroneous opinions of one individual who can neither be questioned nor held responsible for those opinions and actions taken upon those opinions through the process of elections. Such is the case in Sarzonia.

Surely, many in this world can and are questioning nations such as the United Kingdom; where we are united under His Majesty King George. How can a nation ruled by a monarch claim to be a democracy when the rule of one man appears paramount? This question deserves a fair and just answer before I or any of my most esteemed peers continue on this course of action.

In the United Kingdom, the government’s executive functions are prudently split between two individuals: the head of state and the head of government. While many of my fellow citizens and citizens of nations of like-mind to the UK may find what follows pedantic, I feel that we must, as a nation, revisit our own commitment to Democracy. Contemporary political theory holds the head of state as an individual who best represents the people and the state of the people to both the domestic and international community. Contrast this to the head of government, who oversees the functioning of the political institution in addition to the direction of Parliament’s legislative assembly as well as enacting and enforcing those bills passed into acts of Parliament. Government is thusly controlled by officials who must put themselves before the populace at least every five years where their peers hold them accountable for the direction in which they’ve led the country. Accountability and transparency logically follow and what we witness is the development of the aforementioned conflict that drives progress.

However, in Sarzonia we see none of this. The executive functions of the Sarzonian government are held neither accountable nor responsible and what should be a breeding ground for healthy conflict and interactive discourse stagnates, withers, and dies.

It is essential, unequivocally and absolutely essential, that this atmosphere of unilateral decision making within the Sarzonian government change before any real hope can emerge for the Sarzonian people. I have no doubt that the Sarzonian people shall overcome this crisis and that they shall emerge the stronger; however I do acknowledge that I hold concerns over whether the fundamental political and economic institutions of Sarzonia will emerge for the stronger as I have yet to see any movement by the Sarzonian government in a positive direction.

Instead the discourse has soured and become bitter while our governments play tit-for-tat in denouncing the other and partaking in punitive measures that ultimately fail to realise the ultimate aim of helping the people of Sarzonia. Let me make clear, though, that the United Kingdom cannot provide its ascent to any economic recovery plan that forces Sarzonia to accept conditions that seemingly violate its sovereignty. Last year the Sarzo Administration admonished the United Kingdom for infringing upon the sovereignty of the Royal Crown Colony of Novikov; and while the situations are far different we then responded by frowning upon attempts by Sarzonia to infringe upon the sovereignty of the United Kingdom.

And so in light of those historical precedents I cannot in good conscience support a plan that would appear to violate Sarzonian sovereignty. The changes needed in Sarzonia must come through the pressure of Sarzonians and not of foreign governments; but in that light, the Sarzonian government must also recognise that foreign governments have every right to warn their investors away from a nation that has no solid economic foundation. Sovereignty works both ways, so to speak, and as such the United Kingdom will not be providing any aid until we see what the Chancellor views as the establishment of conditions and institutions that support a large, healthy, and robust economy.

I fear, however, that I cannot make abundantly clear my utter disapproval for the reactions taken by the Sarzo Administration in response to news leaked from the Seaburg Conference. The participatory nations have been presented with an opportunity to directly observe the rifts and gulfs between national political and economic philosophies, differences placing each nation in conflict with another. Nonetheless, if progress is to be made it depends on the continued discourse and dialogue of all nations; the move by Sarzonia to recall its diplomatic staff from the Grand Duchy disheartens me because in doing so the Sarzonian government places in jeopardy the goodwill of the international community that is directed, most assuredly, towards the civilians caught between the rhetoric of some of the world’s most powerful countries.

Indeed the UK is not innocent of such radical decisions that lead to inappropriate comparisons and fallacious arguments and statements. The esteemed Prime Minister of Pacitalia, Signore Sorantanali has requested for other nations to enact tariffs and trade regulations - I can only say that the United Kingdom enacted such measures during the height of the UK’s negotiations to enter into the Union of World Powers and furthermore that said measures have not been revoked. No party can wash its hands and so we must cease trying to do so and agree to continue to meet and discuss possible solutions to this economic disaster. It is my hope that once Sarzonia does enact prudent and responsible reforms I can put before Parliament legislation that would remove said tariffs and grant to Sarzonia the financial aid it so desperately needs.

Yet none of this can happen if the leaders of all the respective nations do not cool their heated tongues. While assuaging flared tempers and bruised egos may prove difficult, it is important that we all attempt to seek some level of civility and dialogue for, as noted above, the Sarzonian people need the help of the fortunate – and it is unfortunate that all the governments involved cannot move beyond their comparatively petty differences and focus on helping those who truly need our help.

And so I urge President Sarzo to reconsider his severance of diplomatic ties with the Grand Duchy. While the specific plan of linking the Sarzonian Dollar to the Kroner as well as the Douro may be untenable for the Sarzonian government, no good can come from ceasing all discussion because the first plan offered is not to one’s liking. What we need is true discourse and debate, the very hallmarks of democracy, which is itself the cornerstone of healthy economies.

My thanks to the people of the United Kingdom and those around the world who see fit to offer assistance to our fellow man and womankind in Sarzonia.

[Reporter]: Mr. Prime Minister, can you comment on—

[Lord Salisbury]: I’m sorry Ted, but I have a meeting with the Matriarch of Reloria to attend, no questions at this time.

End

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Official Statement, Incorporated Sarzonian Government

The Incorporated Sarzonian Government notes with considerable disappointment the continued lack of accountability on the part of the Democratic Capitalist Republic of Pacitalia by refusing to admit its role in the disintegration of relations between our nations. Neither party is completely blameless, as several of my colleagues in other nations have pointed out; yet Mr. Sorantanali continues to seek to pin complete blame on the Incorporated States.

We find their attacks, and now those on the part of the United Kingdom of Azazia, on Sarzonian democracy to be particularly appalling. It is not Sarzonia who has chosen to call Pacitalia an Enemy of Democracy. It is not Sarzonia who has demanded a change in government in Pacitalia. It is not Sarzonia who is pursuing an apparent vendetta against Pacitalia. Let's face facts. Pacitalia is in no position to declare Sarzonia an Enemy of Democracy, nor does it have the moral authority to decide unilaterally what sort of government or economic system is best for the Incorporated States of Sarzonia.

Mr. Sorantanali so readily and hastily labels us a de jure dictatorship when Pacitalia, too is a de jure dictatorship. The only difference is this: Instead of being under the jackboot of one man, they are are under the figurative jackboot of the douro. Frankly, Mr. Sorantanali, you disappoint me. I figured you to be a man of integrity and honour like the man you replaced, Dr. Ell. However, a man of honour and integrity does not conduct a campaign of satisfying a political vendetta against my nation.

It is now that we in the Incorporated States of Sarzonia have seen the true colours of a government we at one time considered among our closest friends and allies. It is now that we have seen demonstrated emphatically which national governments truly deserve to count themselves as friends of the Sarzonian government. Mr. Sorantanli, your predecessor made the mistake of alienating your nation's government from my own a few scant months ago, to paraphrase Dr. Ell's words, leaving our people to wonder what happened. You have taken your nation down that same road and you are nearing a point where Paci-Sarzonian relations can never recover.

Finally, Prime Minister Tetley, I have not forgotten you. For a nation that seemingly harbours desires of repairing the frayed relations between our governments, your attempt to interject your government's views of our sovereign government have set any such efforts back enormously. There is a time and a place to address or to redress grievances about other nations through means other than war. Your nation has undertaken such an effort the wrong way.

Has my government been completely blameless? Absolutely not. I -- and we -- have made mistakes that we will rue for years. However, continued attempts to pin the blame solely on my government and my administration without acknowledging your own missteps will only lead to continued resentments between our governments, and eventually, by our people. It is not a road I have wanted our nation to travel, but it seems as though the die has already been cast.

Mike Sarzo
President
Incorporated States of Sarzonia

To: Incorporated Sarzonian Government
From: Khailfah al Muslimeen Government
Topic: Loan

The KLM has been watching your nation plunge into recession state, we wish to offer your nation economic aids in terms of loans to help your nation recovering from its current state of recession, our government as approve a interest free loan package of 50 billion dinars, which can be pay over a period of 15 years by your nation. We offer your nation this olive branch of aid in the hopes of building more fruitful relations and in hopes of helping your nations in its time of need.

Sign
Sultan Suleiman Al Bashir II

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Official Statement, Ministry of International Relations and Foreign Affairs
Democratic Capitalist Republic of Pacitalia

To: Michael A. Sarzo
President, Incorporated States of Sarzonia
Geoffrey Middleton
Prime Minister, United Kingdom of Isselmere-Nieland
Lord Philip Rosecrans
Lord Protector, Grand Duchy of Hamptonshire
Sir Tiberius Polax
Prime Minister, Democratic Imperium of Praetonia
Alistair Tetley, Lord Salisbury
Prime Minister, United Kingdom of Azazia

From: Dr. Rabastano Sancatto Serra, MPP, RPAg
Agustinate of Foreign and Diplomatic Affairs
Democratic Capitalist Republic of Pacitalia


Dear sirs --

I have grown weary and disgusted with the behaviour of every nation involved in this crisis. Are we children, or adults? Are we diplomats, or common fools? Simply put, the efforts we have all put forth in the last few weeks have been nothing short of pathetic. I ask you all, when will we stop bickering and get down to the business at hand? Have we forgotten the basic premise behind the problem? Have we forgotten that people are suffering? God forbid, that is not true.

Such is the folly of being a leader - it is extremely difficult to say the right thing and do the right thing. I shall now speak frankly and openly, and I do not wish to see a rebuttal. This is simply my ministry's opinion of the situation. In the eyes of this government and the people it serves, most of the things the Sarzonian government has said since this mess began have been negative, untimely, insulting, slanderous and absolutely unbecoming. In a situation like this, I ask how one nation in such a crisis can afford to make such comments, especially when the help offered is truly benevolent? How can a president call a federal parliamentary democracy within a constitutional republic a dictatorship crushed under the jackboot of a currency, influential as it may be? How can a diplomatic officer unfoundedly refer to an entire nation as terrorists and not offer an apology? How can a desire to help be so swiftly ignored and put under suspicion?

Yes, I admit, this government has certainly been a bit too pushy with the aid package. And, yes, our frustration at how the Sarzonian government handles basic diplomacy is most certainly starting to overpower our desire to help. However, the uncanny knack of certain governments to repeatedly misunderstand our intentions is the primary catalyst for the increase in diplomatic tension. We are hurt by the fact that our continuously genuine attempts to help the Sarzonian people have once again been forgotten, spun into untruthful fables that have unfairly painted Pacitalians as terrorists, heartless capitalists and scheming slaves in a dictatorship. Portraying aid as a threat to sovereignty cannot possibly help the situation.

You may choose to forget who your friends are in the international community, Mr Sarzo, but we do not. That is the mark of a mature government. Your nation may still be in its toddler years, but from our close relations I expect you know this. We may not appreciate being blatantly spurned by various senior officials in your government, yourself included, but you have failed to notice one thing: we are still here. Even through the ridiculous insults, the poor decisions, the fallacious arguments and the tripe being spewed by basically every government involved, the Pacitalian government is still looking to help.

Furthermore, Mr Sarzo, I can assure you, in my position as a close friend of the prime minister, that he is not seeking a personal or a political vendetta against the Incorporated States, nor will he ever, unless his hand is forced by threat. The Pacitalian government does not work that way, and you know it. Everyone here should know that - this government would not have the influence it does, the friends it does, the connections it does, if its interests were not genuine, if its interests were not seeking the common good of all parties. Our strength is our economy and our diplomacy. We have seen it spitballed by various parties. We have seen our economic methods, which are quite obviously successful, criticised by numerous foreign government officials. The proof is there - we do know what we are doing. I ask you, how does throwing up a red flag at our attempts to help, help you? How can you possibly explain to the Sarzonian people that you refused the help of a nation which has the highest standard of living in the industrialised world? It is still there for the taking, and you are ignoring it.

And so, from this point on, I humbly request friendly cooperation in this matter. I ask the Sarzonian government to kindly reconsider their untimely decision to sever ties with the Grand Duchy. I ask the Isselmerian-Nielander prime minister to kindly submit an official version of his plan to tie the lethse and the Sarzonian dollar together. I ask all other leaders involved, including my own prime minister, to draw together an aid package that benefits everyone, but most of all, the people who need it the most - the Sarzonians.

Let us work constructively, amicably, like the friends we are supposed to be. No more insults, no more working behind each other's back. The lack of trust among our governments is a blatant slap in the face to the Sarzonian people, who still sit waiting for aid and wondering why it has been basically impossible for any multilateral cooperation to occur. Yes, the developments of the past three weeks, not just the recession but the deepening gash in our relations, has been troubling, but there is still time to salvage the sinking ship. It is not time to scuttle the fleet, as it were, just yet.

I ask every leader involved: please do not respond to this unless you plan to respond constructively. If you do not, it clearly means you are unwilling to participate in the new direction of recovery I have requested.


Sincera in domina bene,

Dr. Rabastano Sancatto Serra, MPP, RPAg
Agustinate of Foreign and Diplomatic Affairs
Democratic Capitalist Republic of Pacitalia

OOC: Secure memo delivered by the UKIN ambassador to Pacitalia

To: Dr Rabastano Sancatto Serra, Agustinate of Foreign and Diplomatic Affairs, DCR of Pacitalia
From: Geoffrey Middleton, Prime Minister, UKIN
Subject: Sarzonian Depression

Your Excellency,

It ill behooves one to speak ill of others when one assumes the mantle of diplomacy. All nations involved in this conflict of words have made mistakes; I find it most unfortunate Your Excellency has not taken it upon yourself to examine the faults caused by your countrymen at Seaburg and within your parliament.

There is no established policy to link the Isselmere-Nielander currency with the Sarzonian dollar. There cannot be a definitive plan until negotiations have been completed with the Sarzonian government, and the meetings betwixt our mutual officials have not yet begun.

Should Your Excellency wish to recommence these discussions upon a more stable footing than that upon the great charger that is the Pacitalian economy, His Majesty's Government will certainly find it a most fruitful experience.

Sincerely,

The Rt. Hon. Geoffrey Middleton, MP, CS, PC
Lord President of the Council of State and First Minister of the Treasury (Prime Minister)
UKIN

To: Geoffrey Middleton, Prime Minister, United Kingdom of Isselmere-Nieland
From: Dr Rabastano Sancatto Serra, Agustinate of Foreign and Diplomatic Relations, Pacitalia

Dear sir --

I appreciate your quick response. It is a relief to know that you are willing to cooperate with all parties involved in order to create a suitable recovery plan for the Sarzonians.

I understand your concern in regards to the way that the Pacitalian government handled itself at Seaburg, but I must say that it is unfortunately not in my authority to order a review of such actions. Agustinate Sigurimasso must be the one to admit any shortcomings he created, and while I can call on the Ethics Commission to investigate, the process would end up with an irrelevant and oversighted result that would leave many unsatisfied.

The Pacitalian government is far from innocent in this situation, but it is frustrating to be continuously victimised by the Sarzonians, and to a lesser extent, your government. We are frustrated that our desire to help is being turned into an apparent desire to seek the downfall of the Sarzonian economy, and in turn, its government and people. That is never and will never be our intention. You must understand that, for our government, since about November, attempting to communicate diplomatically with the Sarzonian government is akin to trying to yell through a brick wall. Communication with the Sarzonians has not been practical for nearly four months. They are not solely to blame for that. We will not sacrifice our ideals and our beliefs as a nation in order to appease the Sarzonian government, but we are not naïve in that we may ignore the cold truth that Sarzonia and Pacitalia are better off friends than enemies.

Next, even though your government's plan to tie the lethse and the dollar together is just an idea, I remind you that the douro-krone plan is that as well, an idea. No signatures have been recorded, no official paperwork drawn. Any ideas that could constructively aid the situation are welcome, in my eyes. I would certainly be interested in reading your plan if it were given an avenue in which it could come to fruition. Perhaps my government would even support your plan if it were fiscally realistic and responsible, which I trust it would be. We need cold, hard suggestions that benefit everyone, and not speculation and suspicion. Your plan, if released publicly, I guarantee would help form the foundation for more recovery ideas.

I agree that we need to focus less on how influential the Pacitalian economy is on other states, and instead, focus just on aiding the Sarzonians. But that brings me to my final point in this telegram, one with which I hope you will not end offended. The prime minister has expressed concern that your government is conspiring with the Sarzonians to expedite a retributionary downfall of the Pacitalian economy, or possibly the Hamptonian as well, because of Mr Sigurimasso and Ms Cirmos-Varcolik's plan. We would prefer to instantly call such an idea laughable, but I am afraid relations between the UKIN and Pacitalia have never been cosy enough to justify our dismissing that idea as ludicrous and impossible. I am aware you would not tell me if it were true, but I hope that in the interest of multilateral cooperation we can put all our cards on the table instead of holding them all to our vests, and be totally open with our intentions.

Good day to you, sir.


Sincera in domina bene,

Dr. Rabastano Sancatto Serra, MPP, RPAg
Agustinate of Foreign and Diplomatic Affairs
Democratic Capitalist Republic of Pacitalia

[OOC: Secure communiqué between the parties delivered once more by the UKIN ambassador to Pacitalia]


To: Dr Rabastano Sancatto Serra, Agustinate of Foreign and Diplomatic Relations, DPR of Pacitalia
From: Geoffrey Middleton, Prime Minister, UKIN
Subject: Pacitalian and Hamptonian economies

Your Excellency,

Neither is it nor has it ever been the policy of His Majesty's Government to undermine either the Pacitalian or Hamptonian economies, even if such was possible, nor is it the intention of His Majesty's Government to sow dissent between the formerly close countries of Sarzonia and Pacitalia. Instead, it is and has ever been this government's policy to defend the liberty and prosperity of our Sarzonian allies since the creation of that state.

HM Government concerns lie in certain volatile public comments made by senior officials of your government that threatened to exacerbate difficulties between Pacitalia and Sarzonia, and of policies that were presented to His Majesty's plenipotentiary at Seaburg as faits accomplis whether such was the desire of the Pacitalian government or not. Whilst it is refreshing to read that both you and the Lord Protector of Hamptonshire have both indicated that the policies advanced at Seaburg were proposals with some measure of planning behind them, other topics were advanced that fell far outside the scope of that Conference.

I bid you remind your fellow agustinates that the Seaburg Conference was meant to deal with economic and not political issues, and certainly not issues that contravene the constitution of the afflicted state.

I thank Your Excellency for your candour and for permitting me to voice my worries.

Sincerely,

The Rt. Hon. Geoffrey Middleton, MP, PC, CS
Prime Minister
UKIN

To: Sultan Suleiman Al Bashir II
Khailfah al Muslimeen Government
From: Mike Sarzo
President, Incorporated States of Sarzonia
Subject: Loan

First of all, thank you for taking the time to contact my government in the midst of trying economic times for my country. It does my heart proud to know there are nations out there who are interested in helping our nation through our economic crisis without trying to tear her apart.

While my nation is normally highly reluctant to place itself in the debt of other countries, I would be remiss if I did not gratefully accept your nation's offer of $50 billion, which will be used to help the neediest Sarzonians by helping provide for their essential needs. We are also in the process of discussing various economic reforms in the effort to implement true long term solutions to allow us to emerge from this morass a stronger nation than we were before we entered it.

Once again, I thank you on behalf of the people of the Incorporated States of Sarzonia. May the Khailfah al Muslimeen Government find great success in the years to come.

Sincerely,

Mike Sarzo
President
Incorporated States of Sarzonia

------

[The following is a secure transmission to Prime Minister Geoffrey Middleton of the UKIN. Please consider it secret IC; in other words, only Isselmere's character(s) and mine know about it.]

To: The Right Honourable Geoffrey Middleton
Prime Minister, United Kingdom of Isselmere-Nieland
From: Mike Sarzo
President, Incorporated States of Sarzonia
Subject: Conference arrangements

Firstly, I would like to express to you that Minister for Foreign Affairs and International Development Sir George Fredericks is more than welcome to come to Woodstock to discuss matters regarding establishing a possible link between the dollar and the lethse in an effort to allow our economy to rise out of the depths of despair it has plummeted toward.

It might be best if we discussed an arrangement whereby one nation isn't solely burdened with the responsibility of ensuring our economic recovery. If you believe we can invite a particular nation to join us in such a plan, we would be more than willing to listen to your proposal.

Secondly, I must note my deep appreciation for your staunch defence of my nation in light of the savage attacks against its reputation by the dastardly Pacitalian government and its ministers. It is unfortunate; however, we have come to the realisation that Paci-Sarzonian relations will never be mended after the last communicade from Dr. Sancatto Serra and the recent incendiary remarks from Prime Minister Sorantanali. Frankly, I no longer see any benefit to an allegiance between Sarzonia and Pacitalia. Thus, I must ask for your nation to support my call for Pacitalia to resign from the Woodstock Pact and the Organisation of Maritime Powers.

Both alliance charters call for each nation to agree to a mutual defence of other member nations; however, the state of Paci-Sarzonian relations precludes my government from willingly taking part in the defence of the Pacitalian state under any circumstances. In addition, allowing Pacitalia to remain in the Woodstock Pact after it has called for the expulsion of its founding country is an arrogant step that must not go unpunished.

We hope that the future will bring an economic recovery to my people, but it is increasingly evident that we must do so without the "help" of the Pacitalian government and its people.

Mike Sarzo
President
Incorporated States of Sarzonia

The recriminations from various "sides" in what seemed to become a multilateral war of words between Sarzonia and several other nations were wearing heavily on Sarzo. He retreated from his office in the Gray House after a long day of watching the economic news show no signs of improving.

"Mr. President, we've just got a dispatch from Doom City."

Sarzo scowled when he heard that name. Doomies, he thought bitterly. He looked at it. Typical. The Doomingslandi government was denying responsibility for what was now being termed a terrorist attack on the Portland Stock Exchange's computer system. Even though the captured RSTF agents confessed they did it with Doomie help. Irritated, Sarzo crumpled the end of the paper and thrust it down onto his desk.

At least we have some concrete help, Sarzo thought sombrely as he looked at the $50 billion loan being sent by the Khailfah al Muslimeen. He did a double-take for a moment. Sarzonia had some minor agreements with the Khailifah, but relations between Sarzonia and the Khalifah al Musilmeen were little more than somewhat friendly neutrals. Sarzo thought they might be angling for improved relations somewhere down the line, but that was a matter for another day. Right now, a nation was stepping to the plate when Sarzonia needed someone.

Sarzo heard a knock on the door. He looked up at the man whom some considered his chief political rival: Delgado.

"Brian, what brings you to these parts," Sarzo asked. Pretty damn sure it isn't a social call, he thought as he tried to run several scenarios in his mind. He was sure Delgado was going to ask him to resign and then call for a presidential election, continuing the pressure on Sarzo to take that action that stemmed from the Pacitalian and Azazian governments.

"I just wanted to tell you I have a bill for you to look at," Delgado said. "It's being called the Emergency Banking Act of 2006. Here," he said, slowly moving the paper forward in his right hand. With a raised eyebrow, Sarzo slowly clutched the paper with his right hand and looked at it. The Act called for the President to declare a four day bank holiday while a joint committee on Finance and Recovery established a review of the nation's banks.

"Mike, it's essentially the same deal as the Emergency Banking Act of 1933 that FDR called for," Delgado said. "What that measure did was give Congress a chance to review the banks and reopen the ones that passed inspection. We're basically going for the same thing."

Sarzo looked at the proposal for a moment then turned to ask Delgado a question. Almost as if reading his mind, Delgado spoke first.

"We may not agree on much, Mike, but we do agree on one thing. It's time for us to come together and dig our nation out of this economic mess. I may not like you politically, but I'll do what I think is right for this country, partisanism be damned. Hopefully, you can take heed of my example." Delgado turned and walked out of the room, leaving Sarzo to stare down at the paper.

The issue of whether Delgado wanted Sarzo to call for a Presidential election was not even touched. What Sarzo didn't know but likely suspected was that Delgado proposed an amendment calling for Sarzo to resign, but the amendment was killed. It was dubbed too controversial with the ongoing discontent, but the important thing was Parliament was doing something with the goal of increasing confidence in Sarzonia to overcome the Panic. The question remained whether Sarzo would make the right choice.

[Once more unto the breach...]


The Imperial government had watched the events surrounding Portland Iron Works with concern and, in some cases, a little amusement. The concern came from the fact the way the Sarzonian stock market had reacted to an attempted buy, it proved yet again that real world economic had little to do with the brain and more to do with the heart. The reported way the Pacitalians and Hamptonians had behaved dismayed some in the government, but there was little surprise where the Pacitalians were concerned. In the end, it had all led to some quiet chats and the current strategy session at New Copenhagen Palace.

"... At the most basic level the weakening of the Sarzonian economy has left us with a golden opportunity. We've been looking forever to find a way into that market and while the aggressive purchase of some Sarzonian corporation would be the preferred strategy, the Sarzonians might see it as yet another nation looking to play the shark to their economy's mackerel. In this case, I think that offering the horse a nice, sweet apple would work wonders. I'm prepared to authorize a 450 billion USD loan and to discreetly snap up the dumped Sarzonian reserves. Asiya, have you spoken to Caspar?" Inquired Lady Chyou

Duchess Saleh, known internationally as the Director of Foreign Services, replied, "Yes, he was amicable to your suggestion but he pointed out that much of our naval and air technology is liscenced. He thinks the best he can do without approval from either the Omzian and Freethinker government is to let them have a peak at our sensor software and be a conduit to Ascension Nuclear to maybe get a deal for their pebblebed technology. He also thinks ANI might be amicable to letting the Sarzonians into the Alternative Nuclear Energy Program."

Lien froze in shock for a moment, "Are you sure? They were adament about locking even the Omzians and Freethinkers out of that. They'd need approval to do it anyway."

"Yes, he's positive. That's a potentially huge market and leaving aside what can be sold now, research into cheap energy is always a favorite for nations with rebounding economies. Besides, the Sarzonians could bring a fresh perspective, from what I understand they've been hitting their heads against a brick wall with the fusion power curve. I think I have that right, don't I Azura?" Asiya asked.

Azura was the Duchess of Ascension and deeply involved in the projects of her Duchy's largest corporation, "Yes, that is essentially correct. The large reactors do well in delivering the power they should, but even minute changes seem to make the reactors behave way outside of spec. It's frustrating to them, but I suppose that is why it's called research. C'est la vis. At any rate, I believe your brother to be right, ANI would very much welcome a new market to sell or even build reactors in and, even more, would love some new insight."

The Empress nodded at that, "Very well, assuming the Imperial Senate approves I have no problem with any of the proposals so far. Also, I've been notified that AVS is... most eager to show the Sarzonians some of their newer toys. They think they can get an exemption for the damned defense acquisition law, especially if they see the new battlearmour and TAS. Since both are already fielded and funded I can, and have, granted unilateral permission for them to seek the exemption. They're making noises about R&D as well, but that's going to have to go throug the Senate with the rest of this."

Lady Chyou cleared her throat, "Actually, You Highness, the appropriations I spoke of would come out of the Emergency Relief Fund. It's already been paid into this years and what's more, the amount I specified, including the buying of the Sarzonian currency, wouldn't mean more than a 20% decrease from the ERF. You can authorize that on your own cognizance."

Lien acknowledged the point, "Very well, you may release the money. Draw up the papers. Asiya, I want you to make the general announcement, which should give Chyou enough time to file the papers and announce the immediate relief package. Oh, and be sure to take Pacitalia to task for their behavior, something just short of fire and brimstone will do nicely."

Duchess Saleh's only response was to smile in anticipation.


--------------------------------------------------------------------------


Half an hour later the Press Room of the palace was filled with reported from every internet, paper, and holovid agency in the Imperium, plus not a few based outside the nation.

Duchess Saleh walked onto the stage and stood before the podium, neatly folding her hands in front of her and obviously without any kind of prepared speach in front of her. "Ladies and gentlemen of the press, citizens of the Imperium and Sarzonia, I come before you today to speak of the relatively minor bidding war that Portland Iron Works was involved in that turned into so much more. On the face of it there is no reason for the nation of Sarzonia to be facing a recession, despite the massively outsized bid by PIW no money actually changed hands and indeed the corporation up for bidding was never even sold. Yet again panic, and not rational thought, has caused harm to an economy that in real terms never lost a penny. Understand that this is not a condemnation of either the government of Sarzonia or Portland Iron Works, neither is to blame for the harm that economic institutions regularly inflict upon themselves. Such happens everywhere that a free market exists and nobody has yet found a way to do away with the lemur-like habits of that institution.

"However, there can be no excuse for the way the Hamptonians and, especially, the Pacitalians have kicked the Sarzonian people and economy while they are down by seeking an advantage they could not have at any other time. What is worse, their demands to the Sarzonians to artificially tie their currency to their own and then have the gall to demand a fundamental change to the government of Sarzonia as a condition for aid make both parties as culpable for the continued down trend of the Sarzonian economy. Let us call it what it is: blackmail and warfare by means other than armed conflict against a nation that is supposed to be an ally. What is perhaps most dispicable, however, is the manner in which Azazia has used this opportunity to attack the government of Sarzonia, totally ignoring the most pertinent issue.

"With that in mind, Empress Lien has authorized the following measures to be taken immeidately: the Trade and Commerce Service will release several billion dollars from the Emergency Relief Fund to the Sarzonian government to invest in their economy and help those most directly impacted by this unfortunate turn of events and will also buy all Sarzonian Dollars dumped by foreign governments as a result of the recession. Further, the Empress has also authorized Arkangel'skie Voennye Sistemy to look into the possibility of directly investing into the economy of Sarzonia. Other corporations have also expressed interest in similar deals, however their packages will require approval by the Imperial Senate.

"On a final note, the Empress extends her compliments to President Sarzo and invites him to New Copenhagen Palace to discuss the proposals I have laid forth in more detail. With that, I hand over the podium to the Director of Trade and Commerce, Lady Chyou, who will give a short address to disclose the figures involved in the immediate relief package."

The short woman with distinctly Asiatic features stepped forward, "Good evening, as Duchess Saleh has stated I will be giving a brief statement on the level of relief the Imperium is to provide. Concerning the buy out of all dumped Sarzonian Dollars as a result of the recession, the Imperium is prepared to acquire all funds so far dumped at 85% of pre-recession value; the Imperium believes this to be a fair price that reflects what we believe to be the true worth of the Sarzonian Dollar at this time. Exact figures will need to be worked out between myself and my Sarzonian counter-part, but I believe that this buy up represents a significant infusion of hard currency into the Sarzonian economy and also represents the Imperium's confidence in the same. As to the immediate, non-flexible relief, it will be valued at $450 billion, nearly half of the bid that has paralyzed the Sarzonian economy. Thank you, at this time I will be taking no questions; please direct those to my office, my assistants will take them down and forward them to me for addressing when the situation becomes more clear."

To: Mike Sarzo
President, Incorporated States of Sarzonia
From: Sultan Suleiman Al Bashir II
Khailfah al Muslimeen Government
Subject: Gift

KLM government is pleased that your nation has accept our offer for help for your nation. Also we have heard that your nation recently has went to the gold standard, we offer a gift of 12,000 gold bars to help your nation stabilize its currency and hopefully lead to the path of rebuilding your nation economy to pre recession levels. Also our nation willing to offer your nation reduces rates for gold and sliver from our mining companies, if you should need more gold or sliver to back your currency.

Sign
Sultan Suleiman Al Bashir II
Khailfah al Muslimeen Government

Parliament House
Imperium, New Britain

With a darker skin than most officials in Tetley’s cabinet, George Rodriguez stood out as the Secretary of State for Juristan. That and his height that put him several heads above the Prime Minister, who happened to be out of country on a foreign visit, but Rodriguez was thankful for satellites and telecommunication networks.

This is insulting, Mr. Prime Minister. Flat out insulting and it shows that the international body still has on comprehension of the diversity and social complexity of the United Kingdom.

At the other end came an exasperated sigh before any coherent words. I know, George, we’ve discussed this several times now and I think that it still is in our best interest to not push the issue but rather—

Excuse me, Mr. Prime Minister, but I am not an Azazian and I do not live in a country called Azazia. I am Juristanian and I live in the United Kingdom of Azazia, Juristan, Kingsland, and the Indian Islands. I am not an Azazian nor do I live in some country simply called Azazia. If you will not speak up for the rights of the other half of this multi-national state, sir, I will.

Rodriguez had come to a full and upright position in his leather chair, his free left hand balled into a fist that stood ready to smash his oak desk to tiny shards and pieces. The issue of nationality was indeed a touchy subject in the United Kingdom – especially since the acquisition of the nations of Juristan and the Indian Islands, whose populations were not entirely of British ancestry. Of course, before the ascendance of Juristan and the other home countries into the then Commonwealth there had been no second thought given to the actual name and adjective given to the country and its government. Indeed, it made sense as the government ran a country that incorporated all of the Azazian Archipelago, including the aboriginal Azazians.

However, since the 1980s that had changed with Juristan (a former Golencian territory), Kingsland (another former British colony), and the Indian Islands (most populated by Indians and descendants of pre-Chinese Southeast Asians.) Since the late 1990s, the issue of nationality and ethnicity had begun rising to the surface of UK politics not seen since the times of the two civil wars in the mid 20th century. But as the UK stepped hesitantly onto the world stage under the guidance of Prime Minister Tetley, himself a British-Oceanian or alternatively a British-Azazian, the world seemed unable to grasp the simple, but significant differences between Azazia and Juristan, and the rest of the United Kingdom.

I understand your concerns, George, but this is neither the time nor the place to raise such issues. We will likely have more appropriate opportunities than now.

Sir, with all due respect, we have said that several times now and we still do nothing, Rodriguez added quickly and defiantly.

George, we both know that I cannot be dragged into such semantics as a Prime Minister, Tetley responded his voice sounding tired. But I will give you this much: I have to draft a statement in response to President Sarzo and a few other heads of state and government – and if I can find the proper wording I will attach your concerns, and make them noted as wholly your concerns. Will that suffice?

Rodriguez paused long and hard before answering, knowing that in truth such details would likely fall between the cracks during ongoing disputes of this magnitude. But then it was also necessary to make clear that the United Kingdom consisted of a great deal more than just the Home Islands. Yes, sir, I believe that shall suffice. For the moment.

Official Statement from the Prime Minister

I would like to thank the esteemed Dr. Sancatto Serra for reiterating my concerns that while this depression wears on the people of Sarzonia suffer and that it is imperative all nations involved establish a true discourse that attempts to resolve what I see as significant, but not insurmountable differences.

While philosophical differences will continue to divide the United Kingdom and the Incorporated States of Sarzonia I see no reason why our two governments cannot begin to build the foundations of a bridge between the gap distancing our two states and our two great peoples. While the peoples of both states may not wish to here it, there remains a great deal in common between the people of the United Kingdom and the Incorporated States and that our two governments continue to throw mud only reinforces the artificial gulf between our two countries.

Ultimately, there must be no mistake made about this situation. The return of a strong and vibrant Sarzonian economy is in the best interest of all parties involved and as such I regret that some foreign governments may very well be taking full advantage of this situation to further harm the Incorporated States. Any government attempting to sow the seeds of fear through acts of terror against Sarzonia shall find itself facing the hard, cold scrutiny of my government and any actions that may entail from the conclusion of any investigations.

It is my sincere hope that all our governments can work together to find an agreeable solution that will bring comfort and real assistance to the people of Sarzonia.

Alistair Tetley
First Marquess of Salisbury
Prime Minister of the United Kingdom

Addendum

Upon the concern of the Right Honourable George Rodriguez, the need has arisen to elucidate the specifics on the adjectival form and proper name of the country I lead.

Although long-accepted throughout the 20th century, since the late 20th century onwards the simple name of “Azazia” is wholly inappropriate for a simplified form of the country’s actual title: The United Kingdom of Azazia, Juristan, Kingsland, and the Indian Islands.

Azazia refers to an aboriginal proto-empire that extended across the southern islands of the Azazian Archipelago. Azazian refers to said aboriginal group.

While not upset myself, the populace and select members of His Majesty’s Government have expressed their desire for me to make clear to the international body that in formal government statements, such as the uninformed statement offered by Duchess Saleh, the simple moniker of Azazia is wholly inappropriate and shows great disrespect and irreverence for the unique culture and ethnicity of over two billion individuals.

Alistair Tetley
First Marquess of Salisbury
Prime Minister of the United Kingdom of Azazia, Juristan, Kingsland, and the Indian Islands

[ OOC: I remind everyone that this absolutely, purely IC. Nothing more, nothing less. ]

Constantino Sorantanali paced through his office at the top of the New Prado. His chief of staff, Gianpiero Dovunanto, sat in the chair facing the large pewter and glass desk that served as the centrepiece in the office. Light filtered in through the thick glass windows and enhanced the sheen of the spinnable bronze globe in the middle of the library area.

His aged face was visibly screwed up in frustration and anger. Sorantanali began to read off the printout he had just received from MIRFA.

"Look at this tripe," he said, laughing. " 'The difference is, you're a dictatorship under the jackboot of the douro'. And you're absolutely sure this guy's the president? No wonder Ell had such a difficult time keeping this jerkoff under control."

"Please calm down, sir," Dovunanto replied. He had never seen Sorantanali this angry or this sarcastic before in his life, and now was probably not a good time to do so. Though ranting in private did have its benefits. "Let's just think of a way to subtly get back at these two."

"Oh, don't even get me started on those Scandavians," Sorantanali scoffed. "Come on, Gian, you know they're just bitter that we singlehandedly blocked their readmission into the OMP. They have the worst timing in the world for basically everything they do - look at this, it's no different. All the governments are starting to admit they were wrong on a lot of things and a few are starting to see their relations warm back up. And then, like a bull in a china shop, here comes the Scandavians to save the day..." Sorantanali said, giving Dovunanto a sceptical, unimpressed and disgusted look. "Or whatever they want to call their feigned heroist idiocy. And we're back to the drawing board because these retards--"

Dovunanto bristled at the word and Sorantanali quickly rebounded.

"Sorry, Gian. These... figliati di puttana vonescuta can't keep it in their pants." He stopped to take a breath and Dovunanto interjected.

"Yes, I agree, the Scandavians appear to be on some sort of drug most of the time, because either their statements are incoherent, or they are baseless. Most of the time I'm irked by the fact that they are so unnecessarily and unfairly anti-Pacitalian. However, the Scandavians are doing exactly what we want them to. Look at how much money they're prepared to blow in one drop. Almost a trillion dollars. Let them mess up their own economic situation. Signore Prime Minister, I ask you - who honestly trusts Scandavian judgment? One race. That's it. The Scandavians. That's it, that's all. Let's watch them crash and burn, and laugh it off. Our offer to help the Sarzonians is still on the table, so we will just wait for the Scandavians to make their usual blunders and move in like angels. They've already made a huge one by misnaming the United Kingdom."

Sorantanali stopped, considering it. "Gian, they don't want our help. Sarzo has made it perfectly clear we are worthless. It is an insult to the Pacitalian people. What makes you think anything would be different?"

"Well, if the so-called saviours are out of the race as quickly and unwieldly as they entered," Dovunanto responded easily, "what makes you think the Sarzonians will not be desperate to accept our help? Yes, we're now officially a last resort in their minds, and yes, it's offensive, since we were trying to help right from the start, but we can easily turn around this 'bad guy' rep we have been getting from the Sarzonians by saying, 'look, guys, our offer is still there'."

"You have a point," Sorantanali said. "Perhaps..."

He paused a moment.

"Perhaps we should take the moral high road. Rise above this mess of insults and mud the Scandavian-Sarzonian bloc is throwing at the Hamptonians, Azazians and us, and still play the 'aid is still there, despite the fact that you keep spitting in our faces' angle. Say everyone has made mistakes, and it's time to move on. We need to use our statesmanship ability, not keep rebutting all the baseless insults the Scanda-Sarzo bloc are throwing at us. We're better than them. They know it. That's why they keep insulting us. Gian, they're too proud to say it explicitly. We've been too arrogant, there's no question about it, but we've been doormats on a lot of issues. We need to take the initiative away from the Sarzonians in some way and restore the world's confidence that we are the good guys. Because we are, Gian. Though I'm surprised there's been no outcry to the "jackboot of the douro" comment by Sarzo. It's ridiculous enough that people just aren't listening anymore, probably."

"Let's draft some sort of statement, sir," Dovunanto replied. "We should make it clear that we are committed to aiding the Sarzonians, even though this will be the tenth time we have done so, and at the same time politely grill the bitter Scandavians for once again being their usual politically destitute selves. What's in the statement's up to you, since you'll be the one reading it."

"Right, I'll put it in my to-do pile," Sorantanali joked. The two men chuckled. "But right now, I need to call Lord Rosecrans and see what the Hamptonian government is going to do in terms of reaction to the Scandavian plan."

"Call me if you need anything," Dovunanto replied. He rose from his chair and exited the office. Sorantanali went back to his computer screen and began browsing the Sarzonian and Scandavian communicades. He once again lapsed into a fit of chuckles and doubled over on his desk. Recovering slowly, he picked up the phone and dialed, not the Hamptonian government, but an old friend whose advice would come in handy much later down the road.

[Yays! Diplomatic wrangling! Oh, and Pacitalia, what communiques and how did your minister come into possession of them?]


..::Class 5 Diplomatic Message, No Encryption::..
TO: Alistair Tetley, Prime Minister of the United Kingdom
FR: Duchess Asiya Saleh, Director of Foreign Services
SUB: From a Trumbone To A Piccolo

I note with some amusement the change in the tune of your government's message. First you manage to attack and insult one of the Imperium's more important allies and then when called to task for it, it's as if your government doesn't remember its previous stance. Do you have a doppelganger, Mr. Prime Minister, or do you merely suffer from short-term amnesia? Either way, you certainly have gall asking the people you've insulted to observe your cultural tootsie-footing, ne? Oh, silly me, slipping into Japanese patois again, however that brings me to me next point.

The Imperium has fifteen distinct and very large ethnic groups that make up its population, never minding the dozens of smaller groups that mix in with the larger ones. By ethnicity I am Persian and by residence I am Alexandrian; by law I am Alexandria where any government matter is concerned. Yet, if anybody were to ask what I view myself, I would either say human or Scandavian, depending on how the question was phrased. My point is this: in the end a person is what they swear allegience to. Either your people are unduly sensitive about something so petty, they can't decide which flag they salute, are supremacists of some manner, or any combination of the three. That tells me some interesting things that are, from my point of view, all uncomplementary and none respectable. So, if in the future you find that I refer to your nation as a whole as Azazia, rest assured it isn't folly; I simply don't care.

Now, if you don't mind, I must be about the work of arranging the logistics that will help put back together the pieces of the economy you and yours broke. If there's any confusion about the above, I'm sure the Assistant Director or my secretary can clarify.

..::End Class 5 Message::..

Lord Rosecrans sat in his office reading the latest agricultural projections from the Manium colonies. He was happy to be dealing with something besides the lunacy around the Sarzonians. The silence of the office was broken by his chief of staff, Sir Geoff Kirkssen.

"The Scandavians have decided to get in on the mess in Sarzonia," he said with a hint of exasperation in his voice, "and you won't believe what they are prepared to do."

Rosecrans took the folder from Kirkssen and read began to read its contents. He sat silently, not betraying any emotion, until he finished.

"Are they purposefully being morons or is it just genetic?" Lord Rosecrans asked while chuckling.

Kirkssen turned serious as he took the seat on the opposite side of the desk from Rosecrans. "I think they honestly think that they are 'in the right'. If they only had a single person in their entire godforsaken nation that had a degree in economics or finance they'd see just how crackpot their scheme is."

"This is exactly the problem. Exactly." Rosecrans stressed the last word, "The Sarzonians demand a free deal. When they are refused one, they cry and pout and them some know-nothing "ally" comes in and saves the day. I tell you Geoff, all this does is reinforce the utter Sarzonian dependence on foreign aid."

"Sir," Kirkssen paused to collect his thoughts, "we had indications from our sources within Sarzonia that they were on the verge of actually accepting some measure of reform in their finance system. With this new offer on the table, I highly doubt that the Sarzonians will think they have any reason to reform."

Both men looked at each other. Lord Rosecrans nodded.

"Our official position," he said, "should be that while this plan is seriously, critically and mortally flawed it is in the powers of the governments of the Imperium and the Incorporated States to hang themselves."

"Our unofficial position, which we will make known to the Pacitalians and Azazians," Rosecrans leaned in close to his chief of staff, "is that, from our perspective, the Imperium is now nothing more than the whore of President Sarzo and his anti-reformist gang. They are arrogant, naive and, just maybe, clinically stupid."

Kirkseen turned and walked out of the room. When he reached the door Rosecrans called out to him. "Geoff, if you would be so kind could you please arrange for a teleconference with Sorantanali. Oh, and perhaps its time that I finally had a one on one talk with Tetley."

Sarzo sat down and carefully examined the Emergency Banking Act, as well as the text of the Scandavian offer and the gift from the Kalifah al Musilmeen government. He realised that with one fell swoop on the parts of both the Kalifah al Musilmeen and the Imperium, Sarzonia could already be on the road to recovery.

He turned on the television and saw the Portland Stock Exchange numbers: The exchange soared up 185 points, roughly two percent of its value. It was obvious that some investors were beginning to see light at the end of the tunnel. He turned to look once again at the Emergency Banking Act, realising that with a few key measures, the economy could stagger back onto its feet and Sarzonia could do something concrete, even if the Emergency Banking Act weren't approved.

However, that would only cure the symptoms and Sarzo knew it. It was obvious that a measure of oversight was needed to ensure that the banks were capable of doing their jobs. Sarzonia had a store of its own gold, but it couldn't muster more than 3,000 bars of gold in its Financial Reserve Building. With the influx of gold now totalling 15,000 bars, it would at least make a symbolic impact on consumer confidence.

Sarzo pulled out his veto pen as well as the pen he used to sign legislation. He looked at both, stared at the veto pen for a moment, then opened his drawer and lowered it into the drawer and shut it. He then picked up the other pen and signed the legislation into law.

With Monday's trading coming to a close, the bank holiday would start with what would otherwise be the opening of business Tuesday. The Act would mean that the joint committee would immediately begin its review of the banks and keep open the ones that fit the criteria.

But try as he might, he could not get Sorantanali and his ministers' drivel out of his mind. Fucking prick, Sarzo thought as he started glaring at the picture in the Woodstock Daily Mail of Sorantanali.

"To presume you have the right to demand a change in our nation's government and make threats that smack of a declaration of economic war is the height of arrogance," Sarzo said out loud as Tyler walked toward him. Tyler gave him a look as if to say, "calm down, Mike." He took a deep breath. Sarzonia still had a few cards left to play and if forced to do so, it would. But right now, the politics of omission would have to suffice. Still, Sarzo allowed himself to whisper, "go to Hell" and "hijo de puta" about his Pacitalian antagonists.

Sarzo then walked to the press room to address the media and the public.

"My fellow Sarzonians, in the wake of what has been a round of good economic news, I come before you to announce that I have approved a measure that was borne from our malaise. The timing of this decision may strike some as unusual; however, an influx of $500 billion into our coffers in the form of loans or grants and a gift of gold bars from the Kalifah al Musilmeen government are temporary measures that must be the beginning of our long road to true healing.

"I have just signed a piece of legislation called the Emergency Banking Act. This act will begin a four day bank holiday wherein all banks in the country will close pending a joint Parliamentary review. The banks who have the financial wherewithal to survive and are sound enough to shall be allowed to reopen on Monday. Those who are not will be closed until such time as they can pass inspection. The joint Finance and Recovery Committee will be tasked with the mission to conduct the governmental inspections of the banks and for establishing a long-term foundation for our nation's fiscal health.

"We thank Prime Minister Tetley for his comments calling for calm, especially in light of our respective national histories of simply not liking each other. The United Kingdom has had a long history of espousing the sort of views that we have supported over the years and it's a shame that our governments and peoples have not yet seen eye to eye.

"With respect to the Pacitalian and Hamptonian governments, the difference between severing diplomatic relations in theory and doing so in practice may be a slight one, but it is a significant one nonetheless. Had we moved to completely sever ties, we would have expelled more than just their military assets from Sarzonian territory. Nations recall their diplomatic corps frequently. Is it always the right move? No. In this case, it was not. However, considering the circumstances, I would question whether your governments would not do the same.

"Both the Sarzonian government and the Pacitalian government have committed egregious sins in the annals of diplomacy and both of us have conducted ourselves shamefully. That much is not in dispute. What is in dispute is who is more in the wrong. Let's be realistic here. We both are. It's time for us both to move past the blame game and start getting to the business at hand, which is to make sure the people who need help get it.

"I am calling for a direct end to the insults and name callings and will launch no further from my end. I call upon the representatives of my government to do the same and will make emphatically clear that anyone who violates this directive will face dire consequences.

"We have an interesting proposal from the Scandavian Imperium that we will need to study more closely, but I will be pleased to accept the Empress's offer to visit New Copenhagen personally and discuss the details of their economic package. We also have a meeting scheduled with officials in the United Kingdom of Isselmere-Nieland about a proposal to link the dollar with the lethse. We would need to discuss fully the ramifications of such a move, but those would again be temporary measures until such time as our economy can fully recover from this morass.

"Finally, I wish to announce that upon the demonstration of concrete reform in the Portland Iron Works that originates from the company itself, I will sign an executive order removing the company from receivership. However, the company that regains its independence will do so in full compliance with the laws of the Incorporated States. The status quo for the Portland Iron Works can not continue as it had before the bidding for the Manston Naval Works. That much has been made clear.

"Once again, we are facing a test of our resolve as a nation. We must work together to recover as a people. We can do this if we are united and if we put partisan politics behind us to come together. May we travel down that road together as a nation united in determination."

[Yays! Diplomatic wrangling! Oh, and Pacitalia, what communiques and how did your minister come into possession of them?]

[ OOC: The prime minister was watching Duchess Saleh's speech, and had a transcript of it, as well. ]

[OOC: *Ahem (http://forums.jolt.co.uk/showpost.php?p=10436394&postcount=76)*.

OOC: I've asked people specifically NOT to make solely OOC posts on this thread. The next time someone makes a OOC post without any IC content, they're going to be asked to leave the RP. If you've got questions or concerns, that's what my TG box is for.

Let's get back on topic please.]

From the Foreign Office of the United Kingdom

Attn: Duchess Asiya Saleh, Director of the Foreign Services of the Scandinavian States

Your letter was delivered to the Office of the Prime Minister, however, he regrets that at this time he is unable to respond personally as matters of state detain him from responding to your communiqués. Thusly I have been directed to respond to your queries and concerns as an agent of the Foreign Office.

His Majesty’s Government has made categorically clear its support for the people of Sarzonia while clearly distinguishing the people from the government, something perhaps we should make more clear for your government in more diluted press releases. And so for Her Imperial Majesty of the Scandinavian States I shall reiterate the position of the United Kingdom – and should you not understand I am quite certain that the Department of Information Design can arrange for some visual aid to be attached as an addendum to any further communication.

The peoples of the Incorporated States and the United Kingdom share a love for democracy and political liberalism, at least in theory. While the Sarzonian Constitution provides for the eventual transformation to democracy, even an entry level law student would be able to discern that the first clause of said constitution creates, as Prime Minister Sorantanali succinctly stated, a de jure dictatorship.

And while the Sarzonian government equivocates and mitigates its own constitution and commitment to democracy, we remain of firm resolve to stand fast and not backtrack from our position that the Sarzonian government should be run by a head of government elected by the people and then held responsible in regularly scheduled elections.

Lord Salisbury continues to advocate for such constitutional changes that will democratize Sarzonia while continuing to express his support for aid packages aimed at the Sarzonian people. Again, I must stop and make clear our distinction between the Sarzonian people and the Sarzonian government – two wholly separate and distinct bodies in the Incorporated States.

Now, in response to your concerns about our recognition of the unique cultures within the United Kingdom I must more bluntly state that your analysis is wholly mistaken and entirely misguided. While the Scandinavian States and its inhabitants may not take their nationality seriously, by which I mean the definition of a nation as a body of peoples sharing a culture, values and languages, we here in the United Kingdom are rather proud of the ethnic diversity that promotes and fosters a national dialogue in the truest spirit of Democracy.

As you may personally be unable to grasp the strength of national determinations within a multinational state and the consequential strength in cultural, economic, scientific, and political spheres I will expend no more ink on the subject. Suffice to say that should you require further elucidation of the arguments presented by His Majesty’s Government we shall be willing to make time to explain to the government of the Scandinavian States our positions clear yet again.

Wendy Howard
Deputy Undersecretary of State for Foreign Affairs, Department of International Communciations
United Kingdom of Azazia, Juristan, Kingsland, and the Indian Islands

Kyle Stewart was known throughout his family as a computer nerd. His propensity to stay logged on for hours at a time caused great concern among his parents and his grandmother. He had an avid fascination with cracking security matrixes throughout Sarzonia -- and internationally. Usually, he'd do nothing with the information but use it to brag to his few friends. But the word got around that he knew what he was doing.

He took the Portland Metro to the PIW headquarters so he could meet his grandmother for lunch since school was dismissed early that day. He strode into her office, he found out later she was in a meeting, and began "toying" with her laptop. He knew pretty much everyone there, so it was no big deal, and PIW's security system was among the hardest in the nation to crack. He knew that since he's tried several times to get in and he was always headed off at the pass.

Not today. Today, after a few keystrokes, he found his way into the secure network. But instead of just writing down information for bragging to his friends, he saw something that made him search further. He saw one document marked "SECRET" and opened it.

His eyes widened. A memorandum from PIW Chief Financial Officer Dylan Barker that specified not telling his grandmother anything about negotiations he'd conducted with several members of his staff about the bidding for the Manston Naval Works. He read through several encrypted documents and took notes, secretly sending screen captures of the information to his e-mail account and then sending a quick e-mail to the FBI.

"Hi Kyle," his grandmother said as she came back from her office.

"Grandma! Look at this!" She did and her mouth widened, soon to start quivering in equal measures of shock and anger.

"How dare he!" She picked up her phone.

"Dylan Barker."

"Dylan, this is Admiral Tucker. Get your ass to my office NOW!"

"What's wrong Barbie?"

"Don't call me Barbie you fucking criminal! Get down here now or you're going to find yourself not only fired, but in jail!"

Within one hour, the FBI had Barker and several members of his staff in handcuffs and SNN had a huge story: An elaborate plot to keep Admiral Barbara Tucker in the dark about the bidding for Manston Naval Works and the man people now seem to believe was single-handedly responsible for the Panic of 2006.

Sarzo shook his head with a grimace when he saw the news that the Portland Iron Works CFO was arrested because of what was now being brought to light as a conspiracy to keep Tucker in the dark about the bidding process. Among the details that was also coming to light was one that jolted Tucker: Gladys signed off on the note from Admiral Tucker about Guffingford without Tucker being aware of it.

"Looks like someone's going to have some 'splainin' to do," Sarzo said in a morbid impression of Ricky Ricardo during I Love Lucy. He walked to his office and found Delgado and Jacobi standing outside waiting for him.

"Yes?"

"We have the full text of the Economic Recovery Act," Delgado said. "It's a bi-partisan measure between me and my wing of the Conservative Party and Jacobi and the Progressive Party. It wasn't easy, but we got it through the House and the Senate."

"What's in it?"

"For starters, there will be new rules on foreign investments in Sarzonia," Jacobi said. "We've a list of companies that play a direct role within our national security interests that will be protected by law from a takeover. PIW will be among those companies. But other companies can be purchased up to 60 percent by foreign investors, pending approval by Cheneyworth and his crew."

"Go on."

"Companies that are vital to our strategic interests can be purchased up to 45 percent of their value. That keeps them in Sarzonian hands, but also opens up greater opportunities for investing. Another aspect of this law is that regulations against other companies will be more relaxed than they have been."

"Isn't that how we got in this mess in the first place?"

"Well, no," Delgado said. "In our minds, the laissez faire rules for PIW contributed, but so did stringent rules against other companies. Some of what PIW did before the bidding into Manston Naval Works was good. That's the kind of success we should be fostering in other companies besides PIW."

"All right, what else is in here?"

"It's going to require you to lift the receivership of PIW and revert it to private control. We're also going to have to release the shares that we seized to prevent a hostile takeover. But now that the cat's out of the bag about what exactly happened, we won't be releasing them with a slap on the face. They won't have the same authority they once did. The playing field is more level now for all of Sarzonia's companies."

"You're convinced it will work?"

"Encouraging sensible foreign investment will go a long way toward restoring lost confidence in our economy," Delgado said. "That's what we've been trying to do all along. If other governments see that we're serious about reform, that will be the most direct way we can restore investor confidence in Sarzonia."

"All right," Sarzo said. "I'll take a look."

Eight hours later, Sarzo signed the Economic Recovery Act into law, and made an announcement.

"My fellow Sarzonians, your Parliament has come together in a sense of multi-partisanship and has sent to me the Economic Recovery Act. I have just signed this into law. What it will do is it will allow greater foreign investment with those companies that are vital to Sarzonian national security protected from majority ownership by foreign investors. However, we have increased the threshold of allowable foreign investment into all companies.

"Companies such as the Portland Iron Works will be allowed foreign investment up to 45 percent of their value. Thus, they will remain in Sarzonian hands. But any foreign investment will require approval by the Federal Trade and Commerce Committee, of which Lyle Cheneyworth is the chairman. Other companies that aren't on the exempted list can be bought at up to 60 percent of their value.

"As a result of some needed reforms by the Portland Iron Works and by the government itself, the Portland Iron Works shall be removed from government receivership. It was intended to be a temporary measure to ensure that needed reforms were put in place and that is what it shall be. With the revelation of a complex plot to leave the Portland Iron Works leadership out of the loop, it no longer makes sense for us to maintain government control of the company.

"In my last act with PIW under governmental receivership, I must make the sad announcement that former Incorporated Sarzonian Navy Admiral Barbara Tucker has retired as the CEO of the Portland Iron Works. The company will be operated in the interim by Commodore Jamie Wilson, another former Sarzonian naval officer, until such time as a new leader steps forward. The decision to name a new company managing director will be made by the Portland Iron Works itself, but we bid Godspeed to Admiral Tucker."

[Hey guys, how much of Sarzonia's currency was dumped?]


Asiya Saleh opened the door to her main office and stopped. Her niece and designated heir, Sadira, was sitting in a chair next to the fireplace with a large stack of papers next to the chair. In her left hand was an ornately engraved and obviously old lighter and in her right a slowly burning piece of paper. The Duchess of Alexandria asked the only thing she could, "What are you doing?"

The reply was almost trance-like, "It's mesmorizing, isn't it? Fire, I mean. It dances with the unfelt current of the air and has such a wide variation of color."

"Yes, I quite agree, but that doesn't answer my question. What are you doing?" Asiya repeated.

"Burning copies of that letter from Azazia. I was bored, so I found an assistant that was obviously unoccupied and had him make a hundred copies of that letter. I think this is number twenty-four, but I'm unsure," replied the younger Saleh in what was a decidedly more clear state of mind.

"Well, throw that one in the fire, I want you to see something," ordered the Duchess.

Walking over to her desk she picked up the remote to her high definition holovid projector and turned it on. The channel was already on SNN and the top news story of the hour was the arrest of Dylan Barker, who was supposedly the primary party responsible for the recession in Sarzonia. Both Salehs were smiling; the master for the justice done and the protege for an entirely different reason.

"So, it worked. Your timing was splendid and now not only does the Imperium see one of its allies recover from a stupid economic crisis, but the Imperium profits. How quickly do you think their currency will recover?" The question was almost rhetorical in that it was obvious Sadira had her own ideas, but she also recognized who the better stateman was.

"Quickly enough for our purposes. If they tie their currency to anybody's, it won't be for long. Once it does, we'll be able to partially subsidize whatever new factories our companies build in Sarzonia, assuming we can get a deal done," replied Asiya.

"Did Commerce and Trade ever tell you how much was dumped? We could have made a real killing if we'd gone lower, say at a value of two Sarzonian Dollars to every USD, but no, we had to be all noble about it," Asiya' niece was obviously irked at the opportunity wasted.

"You know we couldn't have afforded doing that. Nobody was really sure the Sarzonian economy would recover at all and if had gone lower we would've just looked like currency speculators instead of friends. Remember, managing economies is as much art and psychology as it is science. Not that you'll ever have to worry about it much. The important thing is this: our timing was spectacular because now their economy is sure to recover with this arrest and because we acted like friends instead of economic kidnappers, we get to share in the good news. The other guys, the ones acting like blackmailers, will have a lot of egg on their face," explained the girl's aunt.

"Good, they deserve it. Damned nâmard, one and all. Will you be making an address later?"

Asiya nodded, "Yes. Now, be gone, I have work to do."

From PNN.pc - Breaking news

http://www.nordicwirelesswatch.com/newspics/RelanderKajErik150.jpg
Sarzonian officials arrested Dylan Barker, CFO of Portland
Iron Works, on Sunday morning, and charged him with economic
conspiracy, fraud and committing improper document filing after
he conducted meetings over the bidding of Space Union's Manston
Naval Works without the prior knowledge of PIW CEO Barbara Tucker.


Barker arrested; documents seized thanks to Tucker
PM commends "quick work of Sarzonian authorities"; says arrest is "a great boost for confidence"


By Alfredo Quintanilla, Woodstock

In a stunning development, Sarzonian authorities arrested Portland Iron Works' CFO Dylan Barker, implicating him in multiple incidences of fraud and conspiracy in regards to the massive overbidding that took place nearly two months ago over the Space Union company Manston Naval Works. The disgraced former senior officer admitted PIW's CEO Admiral Barbara Tucker had no knowledge of his actions, something that should help to exonerate the head of the massive corporation.

Tucker was directly responsible, however, for the release of multiple documents which she discovered implicated Barker. After reprimanding and dismissing Barker, she reportedly handed over the evidence to authorities immediately along with the deposed now-former CFO. Tucker did not comment to the media about the incident, and in addition, no one else from PIW is willing to make a statement to major international and domestic media on the issue, except for an unnamed source.

"We're pleased that we have taken a step in the right direction toward the restoring of confidence in Sarzonia in general and the Portland Iron Works in particular," the source said.

"This is great news for the company," an anonymous Pacitalian military analyst said. "[Admiral Barbara] Tucker did the right thing, and nobody can question that at all. The fact that she expedited Barker's detainment, and handed over verifiable proof immediately, was the right move on her part."

Prime Minister Constantino Sorantanali also lauded the retired Admiral, saying "it should turn into a great boost for confidence among Sarzonians in regards to the integrity of the Portland Iron Works," and adding "the quick work of both [Admiral Tucker] and Sarzonian authorities was pleasing to hear". He finished by saying, "this is a great leap in terms of international confidence in Sarzonian ability," and that he "hope[s] this will lead to other, equally positive developments in the grand scheme of things".

Sorantanali also said he was "very pleased to see the cooperation that allowed the Sarzonian government to enact their new economic recovery legislation".

News of the arrest brought currency futures on-line with the Sarzonian dollar instantly rebound in futures trading to a rate of around SZ$21.72 to the douro. Whether that jump (about SZ$4.15) holds Monday in open forex trading remains to be seen, but analysts predict it will. However, analysts expressed marked concern "the Scandavian States economic assistance plan to dump hundreds of billions of dollars on a struggling economy in one drop would simply cancel out the good caused by the arrest."

The prime minister said he was also concerned but did not speculate on it any further.

Woodstock Daily Mail

Stocks expected to jump at news of arrest, reforms

by Jennifer Halloran
Daily Mail Staff Writer

PORTLAND -- While analysts are preaching caution with rampant speculation that Sunday's arrest of Portland Iron Works CFO Dylan Barker would help restore confidence in the Portland Iron Works, international reaction to the arrest suggests that Sarzonia may be seeing "the light at the end of the tunnel."

"We're pleased that the facts are starting to be uncovered," said one source within the Incorporated Sarzonian Government, who asked not to reveal her name. "It's time for us to move past the destructiveness that has marked our economy for the past month-plus and start undertaking the real work that's ahead of us."

Lieutenant President Nicole Lewis said Barker would "have the book thrown at him," and said the Federal Bureau of Investigations would consider charges including treason.

"What he did almost single-handedly wrecked our economy," Lewis said. "We're going to put all the facts out there and let the facts speak for themselves."

Reports from the Portland Police Department suggest that Barker has been "cooperative," and has lead them to evidence of further wrongdoing that has been kept away from Admiral Barbara Tucker, the former CEO of the Portland Iron Works. He's been "helpful," but hasn't answered questions when investigators asked him why he did what he did.

"That's going to come eventually," one officer said. "We're going to get it out of him."

Duchess Saleh sat in front of her desk and the now undarkened glass behind her offered a panoramic, torch-lit view of the Necropolis. Every part of this Necropolis was substantially larger than the real thing had been, but then again so was the glass pyramid that made up the capitol build of Duchy Alexandria.

"Good evening, or morning, depending on where you are, I speak tonight to address the arrest of one Dylan Barker, former Chief Financial Officer of Portland Iron Works. First, I would like to congratulate not only the Federal Bureau of Investigations on a successful arrest of a criminal, but also Barbara Tucker on finding and disclosing the evidence that redeemed herself and her company. Doing so was probably the most important step in beginning the healing process that is sure to take place. It has sutured shut the wounds that have been rendered to the bone, now those wounds need but heal over. There will be scars, let there be no doubt about that, but what is important is how they are worn. Do not hide those scars, display them as you would skin that has been unmarred, to say, 'I have fought and been injured but I bested my adversary and I am not ashamed.'"

"As for Dylan Barker. There can be no doubt that he is a criminal, he has admitted such. He is a nâmard and an ahmaq for having hid his crimes as he did. But, traitors are always such. As a traitor he deserves to die a coward's death, with a noose around his neck and his feet hanging above the ground. Had he been forthwrite in admitting crimes, perhaps he would rate a more honorable death, or even life in prison. Such is my opinion, at least.

"I must also take this time to condemn the Pacitalian 'analysts' as fools and speculators. They do not know the breadth or depth of the Imperium's plan for financial assistance to the Incorporated State of Sarzonia, short of some very illegal activities. However, speculators are often wont to take what is not said and spin it into a golden yarn for the purview of those bought into their schemas and forumulae. As such, it is not surprising that they have extended their guessing games into arenas that they have very little business, but no less worthy of condemnation even so.

"May the friends of the Imperium have dreams of a land of milk and honey, the enemies of the Imperium fitful rest, and those who do not know us to one day be greeted as friends."

Portland Press Herald

Sarzo calls for 'end to recriminations'

by Jon Conway
Special to the Press-Herald

WOODSTOCK (5 March 2006) -- Reacting to what he called "an unfortunate display," President Mike Sarzo called for people "on both sides of this war of words" to pursue a "fast end to recriminations that are doing little to address the real problems we face," as Sarzonia looks to piece together the events that led to the arrest of former Portland Iron Works CFO Dylan Barker.

"Now is not the time to fight a war of reproach," Sarzo said in a nationally televised address from his office in the Gray House. "Now is not the time to pin the blame on foreign powers for our downfall or pass credit along for our eventual rise from the ashes. Right now, we need to focus on the real task at hand, and that is to decide which methods are the most effectual ones to bring this nation back from its economic nadir."

Sarzo said the comments by Dutchess Saleh about the Pacitalian economic analysts were "unfortunate."

"The state of Paci-Sarzonian relations being what they are, the timing of the comments by Dutchess Saleh makes any possibility of restoring a measure of cordiality between our nations that much more difficult." Sarzo refused to confirm or deny reports that he has privately written off Paci-Sarzonian relations as "permanently severed," saying that such speculation was "highly unwise."

Sarzo said the trial of Barker on charges including treason includes the possibility of the death penalty for Barker. Barker is currently being held without bond at the J. Edgar Hoover Correctional Facility in Woodstock, where he is awaiting trial.

Sarzo said he, former Portland Iron Works CEO Barbara Tucker, and Vice President for Business and Commerce Janis Hedge would travel to New Copenhagen to discuss the possible relief package with Empress Lien Larsen and her economic and military advisors. Sarzo wouldn't confirm or deny the tenor of the talks, but some officials within the Gray House are saying the offer would be "carefully evaluated."

"We need to make sure that we're not dragging their economy down with ours," the official said. "We want to make sure that our economy recovers intelligently and that we don't exert undue strain on the backs of any one people."

From the Georgetown Gazette (online)

Lien to Sink Sarzonian Recovery

Tetley calls Sarzonian Economic Recovery Act a “positive step”

By Robert Rocca
The Georgetown Gazette, Imperium
________________________________________

After the arrest of a senior Portland Iron Works official in relation to the company’s failed bid for Manston Naval Works UK investors have begun to see the first signs of positive actions taken by the Incorporated States of Sarzonia to restoring investor confidence through the targeting of high-level executives and senior officers who are alleged to have committed massive and numerous instances of fraud

Speaking at a small press conference while on a state visit to Reloria, Prime Minister Tetley called news of the arrest of a cadre of Sarzonians as “positive” and added that he was “hopeful” that the Sarzonian economy would soon be on “the fast track to recovery,” although he cooled any notion of a rapid reversal saying that “significant” damage had been done that would take “some time” to reverse.

However, news of the offer by the Scandavian States quickly chilled the currency markets in the United Kingdom, which had seen the Sarzonian Dollar stop its fall and begin to slightly reverse its trend. From Seaburg, Chancellor McKay responded via e-mail to questions from the UK press expressing his doubts over the “Scandinavian’s ill-conceived” offer adding that their abrupt entrance into the crisis “illuminated the opaque veil that covers their faces, obscuring reality and the ramifications of their actions.”

For the moment the possibility of UK investment into the Sarzonian markets seems “unlikely”, according to Clifford Woolery of the Royal Bank of Azazia. Woolery noted that the recently passed Economic Recovery Act signified a “firm commitment” to the “liberalisation of the Sarzonian economy,” which Woolery added was the most important aspect for attracting international investment. In his interview he noted, however, that despite what “seem to be good intentions” the offer by Empress Lien would serve only to “arrest the recovery” and “potentially reverse the encouraging first steps… towards a Sarzonian recovery.”

To the address of Duchess Saleh, Chancellor McKay in his interview defended his Pacitalian peers saying that the economic strength enjoyed by Pacitalia was “superior to that of the Scandinavians” and that such successes owed nothing to “neither fluke nor folly” but to the “superior acumen of Pacitalian ‘fools and speculators.’” He went on to add that “if Pacitalians are ‘fools and speculators,’ than the Scandinavians are but toddlers at the helm of a massive ship of state steering towards a massive minefield.”

From PNN.pc

http://www.kfilmu.net/obrazky/herci/dustin-hoffman.jpg
Agustinate of Foreign and Diplomatic Relations
Dr Rabastano Sancatto Serra agreed with Sarzonian
president Mike Sarzo, repeating his message that it
is "time to move on and try our best to reconcile".

Sancatto Serra sides with Sarzo, urges diplomacy
Agustinate careful to ignore inflammatory comments of Scandinavian duchess

PNN staff compilation

Dr Rabastano Sancatto Serra encouraged hope of a rebound in Sarzonian-Pacitalian relations Sunday evening as he came to the proverbial side of the Sarzonian president, calling for "cooler heads and friendly dialogue as Sarzonia begins its visible rebound thanks to the earlier arrest of Mr [Dylan] Barker".

The Agustinate of Foreign and Diplomatic Affairs was careful to ignore the comments of one Duchess Asiya Saleh, the interlocutor handling Scandinavian diplomacy during the Sarzonian recession. Saleh remarked that certified Pacitalian financial analysts were "fools and speculators", in response to those analysts expressing concern the Scandinavian aid offer would be too much at once for the Sarzonians to swallow.

The Scandinavians are proposing to drop $450bn instantly on the Sarzonian economy, but analysts far and wide, not just those in Pacitalia, are criticising the move as "nonsensical" and "the ultimate anathema of sound economics". Duchess Saleh has claimed the Scandinavian government has a much deeper form of aid in the works but that is yet to be proven.

Agustinate Sancatto Serra said he sent an electronic communication to the Sarzonian president, and that he expects a response will come. Meanwhile, Prime Minister Sorantanali is rumoured to be telephoning the president later to discuss whether or not the shipwreck that is now Sarzonian-Pacitalian relations cannot be mended. All signs point optimistically, but the government appears cautious in this first stage of the Sarzonian rebound.

No Pacitalian officials commented on the comments of the Scandinavian duchess, but Sancatto Serra said his ministry was "looking forward to engaging in sound dialogue and diplomacy over the next few days with the major involved parties".

Naysayers Lack Something Critical
By Catarina Gallego
GaliciaSunTimes.GLC


Ask any basic trainee in any decently-trained armed force in the world, and probably not a few poorly-trained ones, what the most important thing about not only being a soldier is, but being a person, and they will reply with "attention to detail." Unfortunately, that is what those in charge of the governments of Azazia and Pacitalia lack, and in a big way. That, or they are purposefully misleading their citizens in order to defend broken positions. Either way, they need to reexamine something; eyes or soul.

The "other side", as they are being called in polite circles, continuously cite the intention of Empress Lien to drop 450 billion USD in on go into the Sarzonian economy. To quote the Pacitalia News Network, "The Scandinavians are proposing to drop $450bn instantly on the Sarzonian economy, but analysts far and wide, not just those in Pacitalia, are criticising the move as 'nonsensical' and 'the ultimate anathema of sound economics'. Duchess Saleh has claimed the Scandinavian government has a much deeper form of aid in the works but that is yet to be proven."

Of course, if one examines a transcript of the conference one will find that this does not even being to be the case. To quote Lady Chyou, "As to the immediate, non-flexible relief, it will be valued at $450 billion, nearly half of the bid that has paralyzed the Sarzonian economy."

At no point does Lady Chyou outline under what timeline this measure would be undertaken, merely that 450 billion USD was the proposed, non-flexible amount to be delivered to the Sarzonian government as soon as possible. How soon that happens, or if it happens at all, depends entirely upon whether or not President Sarzo feels the need to accept that level of relief. In light of that, it seems that Duchess Saleh's assertion about speculators weaving gold yarn from nothing is quite justified and perhaps should be extended to the government of the "other side."

In a somewhat amusing sidenote to this entire episode Chancellor McKay seems to believe that the Pacitalian economic strength is, “superior to that of the Scandinavians.”

Leaving aside the fact that nobody on the "other side" seems unable to spell or pronounce, "Scandavian," it appears the good Chancellor is either misinformed or that ugly lack of attention to detail is rearing its head again. The GDP per capita for every year for the last five hundred years has been hovering around 50,000 USD and the economic worth of the nation is a little over two hundred and ninety-three trillion USD. If the Chancellor keeps it up, his little piece of golden yarn is going to be a mile long. Maybe his nose will grow with it.

Seaburg, Grand Duchy of Hamptonshire

McKay had taken some time to stroll about the city that hosted the conference and thus the government of the UK for the time had come to do some intelligence gathering. About the local cuisine. Trailing him at a small distance was a gaggle of reporters from Imperium who had been quietly informed that McKay would provide them lunch and, more importantly for them, a casual interview.

When the group found an acceptable location they strode inside and presented their orders, not a one familiar with the items on the menu. McKay smiled while he found a large enough table for after speaking to Lord Salisbury he had been given free reign to answer as he saw fit. And so everyone slowly returned to the table, placing their food and drink upon the table, one reporter sliding over McKay’s choices.

Well, ladies and gentlemen, thank you for coming. I assure you that as long as you provide me some opportunity to eat my lunch here I shall be as forthcoming as I can – and I’ll be on the record. He took a bite of his sandwich while the reporters laughed, and the one who had brought over McKay’s sandwich leaned in first.

Have you read this article, it comes from a Scandavian outlet and criticises both you personally and His Majesty’s Government?

McKay shook his head, Come on, Alex, you know I have far better things to do than read such garbage. Why? Is there something you’d like a response to?

It says here that your criticisms of the Saleh Plan are unsound and that you personally are in error with regards to your comparison of Scandavia and Pacitalia. How would you answer such charges?

While I’m normally not one to respond to charges put forth by a lowly press outfit, no offence ladies and gentlemen, I think that in such an informal gathering I can give you a small response. Would you mind if I read the article for myself real quick?

McKay took the offered printout and quickly read through the article, grinning and laughing at several points. Finally he placed the item on the table and took a drink from his glass of water. Well suffice to say this article is more proof positive that Scandinavia doesn’t understand economics and their meddling will only hurt the future of the Sarzonian economy.

Chancellor, you just called the Scandavians “Scandinavians”, something this article here points out as your being “misinformed” or an “ugly lack of attention to detail.”

McKay smiled while he chewed on a succulent bite of his lunch. I assure you Danielle, that any such identifications of a national government and people are not folly, but His Majesty’s Government just doesn’t care.

The whole group laughed politely and so interjected a moment of levity into the conversation. Washing down his bite with some water, McKay continued, To return to the matter at hand, we have here the Scandinavians being proud of an economy that, McKay paused while he reached across the table to pick up the news item. Ah, yes, their GDP per capita has been “hovering around 50,000 USD for every year of the last five hundred years.” Well, sure, five hundred years ago that would have been great but quite simply that isn’t impressive in the modern era. And I’m afraid that once more the Scandinavians are woefully ill-prepared in this discourse as the Pacitalians boast a GDP per capita of near 60,000 while our own figure in the UK is likely to reach between 56 to 58,000 when we unveil the new economic figures later this month. I urge you all to cover such fascinating and in-depth number crunching.

Pausing for laughter and some of their meal, the reporters knew full well that actual coverage of the statistical growth of the UK’s economy would be light as the public would simply dismiss numbers and figures. Anyhow, McKay continued, those figures from Scandinavia directly conflict with any claim of economic strength, and I’ll tell you why.

Quite simply, they are proud that their economy hasn’t actually grown in five hundred years. Their GDP per capita has remained near constant for five hundred years and so you combine that with a growing population it means their economy only grows enough to keep up with population growth. There hasn’t been any real growth in over five hundred years. Take the UK for example and we’ve surged up from 30,000 in the mid-20th century to near 60,000 by this coming fiscal year. The same can be said for Pacitalia and I’d imagine for the Grand Duchy that hosts us. That, that is proof positive of healthy, vibrant, strong and growing economies – exactly the type that the Sarzonians should be looking for as investors. Economics isn’t about politics, and I’d advise the Sarzonians against accepting aid from nations just because they enjoy warm diplomatic relations. The Sarzonians need real results indicative of a recovery; results they won’t likely see if they accept aid from nations such as Scandinavia, itself a stagnant economy that investors of which investors should be wary.

McKay nodded he had finished and continued to nibble at his sandwich while the reporters quickly scribbled down the whole discussion of what McKay saw as the economic impotence of Scandinavia. He smiled while he wiped some crumbs from his lips, Lien’s government should have taken more time to review all the facts before jumping into an already delicate situation. Things had begun to settle to allow for a Sarzonian recovery and now that very recovery was in jeopardy because of ill-timed comments and ill-advised and so-called “aid.”

As the lunch wrapped up McKay wondered to see what the headlines from the interview would be. By the time he reached his temporary office in Seaburg the first headline was streaming out of the Georgetown Gazette: McKay: “Scandinavians woefully ill-prepared” in offering aid to Sarzonia”

Lost in the mess of the Panic of 2006 and the efforts of the Sarzonian government to pull the nation out of its economic morass was the state of the Incorporated Sarzonian Military. Wartime acquisitions and expansions for what was projected to be a long and brutal war against Pantera but turned into a much shorter affair than expected were suddenly starting to look like the remnants of a Thanksgiving Day feast after one had eaten far too much turkey and stuffing.

The lessons of Inkana, and later, the Panteran war resulted in major technological advances and drasticly increased stores of vehicles, weapons, and supplies. However, that also meant that each branch was still operating at a near wartime footing. The nation had never really stood down from DEFCON 1 or 2 despite a period of relative calm after the Seastone Accords ended Sarzonia's direct involvement in the Gholgoth Wars. Now, that ramped up alert status was beginning to be evident in the nation's bottom line.

Even though the Z-34 Bonham Main Battle Tank had been ruled by the Incorporated Sarzonian Military as the successor to the Z-33 Jaguar, thousands of the older tank model, including the overwhelming majority that did not have their 125 mm ETC guns replaced with the ultramodern 120 mm ETC gun on the Bonham. By now, such a conversion was deemed prohibitively expensive, especially since the downarmed Jaguars would otherwise be relegated to a reserve defensive role.

The situation was much the same in the other branches of the military. Highly-advanced aircraft that came about as a result of a rush to modernise were now becoming more than just a golden albatross for a Sarzonian nation that now could ill afford to keep many thousands of aircraft that it was no longer using on the front lines. They were becoming a logistical nightmare as well. Several variants and aircraft types were straining a support chain to its maximum. Air Force Chief Greg Rodgers planned to simplify logistics by reducing the types of aircraft to just a few base models and then using variants of each, but that also meant that many old -- and relatively new -- aircraft could no longer remain in commission.

The Navy was also bloated, but a nation that made its reputation as a master of the seas was almost expected to have a large number of ships. However, with ship types that were falling out of favour in the ISN buttressing its numbers, the Navy could not implement its "leaner and meaner" programme that would allow it to maintain its mission profiles of protecting Sarzonian interests as well as perform its traditional role as a worldwide projection of Sarzonian power. The Navy would have to make some cuts of ships that were now considered obsolescent by the ISN.

The branch chiefs gathered with Vice President for Defence John Newman, Vice President for Naval Operations Kathy Bunhall, and Vice President for the Home Guard Bill Lighton with a plan for selling off assets and converting the amount received for scrap into a dollar amount that would provide at least a momentary salve for a depressed economic condition. Ultimately, with the status of possible mass sales of equipment that would still be powerful in the hands of the right ally not a certainty, the plan that came about would result from the scaling back of the military was expected to bring $25 billion to a struggling economy.

"Is that the best we can do," Newman asked, exasperated.

"That's the best we can do without changing our mission profile," Bunhall said. "The way I see it, this brings us down to our bare bones assets. If we cut any further, we're going to have to revise our white paper."

"Perhaps we should consider revising our white papers," Rodgers said. "It's plainly obvious that we're not going to be able to afford to keep all the thousands of aircraft we have that are contributing to our logistics nightmare. And scrapping them is only going to bring about limited fiscal relief."

"Ladies and gentlemen, I'm well aware of that," Newman said. "But if we can save at least this amount of money, we can show Parliament that we're able to help them conserve some of the money they'd been allocating. Besides that, if we can go back to peacetime staffing proportions, we can save a bit more money."

Lighton nodded.

"The way I was calculating it, sacrificing equipment alone would have accounted for less than $10 billion. Revising staffing requirements downward might be worth another $5 billion. Besides that, I don't know what good it's going to do. It's still a drop in the bucket."

"Perhaps it can be more if we can find a buyer for this equipment," Newman said.

"At this late stage of the game? Who can we find to buy all this equipment," Rodgers asked with skepticism weighing heavily on his words.

"I'll see if I can drum up a few contacts."

"Minister Beckett Sir, Your Guests will be arriving soon, according to NARD they are about to enter our airspace," that voice, ah yes it's Jeffery, What's he doing in here, I thought I'd said I didn't want to be disturbed, heaving a sigh and shifting his broad shoulders he turns away from the great window that afforded his Office such a wonderful view of the city below to turn to face his assistant.

"Is there another reason for this Interruption" stringing out the final word somewhat ominously, "Daphusa?" slowly padding his way across the hard floor of his large office and past his wide desk to the young man before him, "Well what is it then?"

Jeffery swallows somewhat tentatively before hastily rustling through a sheaf of papers in his arms, "Ah, Well um yes," he stammers frantically searching through the papers, "Ah here it is, Today's Production reports," nervously extending an arm forward with the thick booklet towards the angered Minister.

"And is that all?" Demands Beckett, his voice rising slowly.

"AH yes, NARD asked me to inform you due to unforeseen Circumstances they've had to reroute the Sarzonians slightly, something about a danger to the flight." trailing off as the Minister assumed a thoughtful look at that, "Sir If there's not anything Else I have some filing to take care of," spinning on his heel and making for the door.

Interesting, I'll find out there original route, I do wonder if they were going to stray to close to Damocles, not that it matters, you'd have to be blind to miss that thing in action, well the damage is done, and this boy needs to learn a few things, snapping out of his reverie he clears his throat, "Yes I think there is one more thing, your to take the rest of the day off and relax, I don't know why your cringing, I'm not gonna bite ya now scram." A smirk plays about his face as he watches the young man with great relief hurry out of the room, taking up his left hand to scratch the back of his head while wandering back over to his desk he drops the report without ceremony onto it.

"I suppose I'd better make a move, I wouldn't want to be late in greeting them, Cyberax, is my escort ready?" his voice echoes out in the great expanse of an office, the black onyx like floor as well as the light from the window and lights overhead stretch out before him, on the wall closest to him on a large monitor a segment of a hectic screen detaches itself from the rest of the background enlarging itself and moving to the fore.

"Affirmative Minister, They await you at the Monorail station, The Sarzonians are expected at Techopolis International in 1 hour 15 minutes and 53 seconds, Be advised however, their flight has passed near Damocles and you shall be required to find out how much they have seen. Addendum, The Board of Directives will be ready to meet with the representative's in 7 hours 27 minutes and 2 seconds." The silver skull of the Machine, Cyberax finishes, it's eerie mechanical voice still filling the room with it's echoes, the thing had been installed in most civilian installations to help improve efficiency, sometimes too much efficiency can be counterproductive,

"Thank you Cyberax that will be all, and in future I prefer estimations to approximations, remember it well," he responds shortly staring up at the screen with a sharp eye.

"Of Course Minister, Farewell," the Machine returns before the image shrinking back down to the small square it had occupied earlier, the monitor displayed a multitude of happenings, from images of the Stock market, to the happenings of the great Foundries and many other things as well. Turning on his heel pulling at the collar of his Tunic he stalks out of his office, turning back for a moment to regard the view out of the window, and the sculpture of Viginias he kept for luck in the corner, this is certainly going to be an experience.

He emerges from his office the doors sliding back together with a silent hiss, turning left down the wide high walled bannered corridor his boots make an audible thud with each step, as he passes others in the Corridor they nod their heads in respect, and a polite, "Morning Minister," plunging his left hand into his tunic pocket as he nears the entryway to the Monorail station for the building he rummages round for his ID card, as his fingers alight upon their goal and pluck it out he reaches the door, without preamble he slides it through the reader, almost instantly the door opens wide permitting him entry to the station, in front of him stand a quartet of stern looking Enforcers as well a representative from the Foreign Ministry, not someone he recognized but the introduction would come later.

"This Way Minister," the Enforcers would motion forward and form up around him leading him into a monorail car, this particular route was reserved for government officials there were other routes leading to the station, however this one was off-limits to civilians not part of the government. The doors slide closed behind them with a thrum as the Monorail whirrs away.

"Minister Beckett, I am Attaché Damen Porvael, I've been assigned to the Sarzonians while they are in Novacom Territory, while their visit may primarily be to meet with you, they may wish between or afterwards to have a period of recreation." he inclines his head politely and clasps his hands in front of him as the monorail car speeds on.

Half an hour later the car pulls into the Airports Monorail Station, the group swiftly stalks out to await the Sarzonians, lead by a Squad of Capitol Enforcers, the Internal Security force of Novacom, they lead the Minister and his group through the massive Airport complex to the Governmental area, there they would await the arrival of the Sarzonians, it would be quite a low key affair, a group of reporters from the press were at hand as well as additional Capitol Enforcers should anything untoward happen, once a quick yet thorough check was done then things could really begin, althrough the procedures seemed overbearing, they were in reality quite hassle free.

A mere formality, why would anybody want to Impersonate my guests? well it's procedure, and they need to be registered on the ID system during their stay, not a bad thing really, if they come again they won't need to repeat it, The Minister sighs gently to himself, it wouldn't be long as he cast an eye up to one of the mounted monitors on the pillar as it began it's descent, not long now, only half an hour before they arrive.

PM welcomes liberalisation, expects more
With the CPI criticising 'endursing economic statism', will Sarzonia's reforms prove enough?

http://www.eere.energy.gov/industry/petroleum_refining/images/profile_image.gif
___________________
From 'The Parliamentarian'
Page 2

The Prime Minister has announced that his Government is 'mostly satisfied' with Sarzonia's plans to liberalise their economy, but states that there is 'much more still to be done' if Sarzonia is to become a truely free market state. New Sarzonian economic regulations will mean that foreign ownership of Sarzonian companies will become a reality, but the new legislation will require every transaction involving shares in Sarzonian 'protected' companies being sold abroad to be approved by a government agency, and foreign investment in any company will be capped at a maximum of 60%.

The Confederation of Praetonian Industry made an official statement yesterday, welcoming what they called 'necessary concessions to economic realities' but criticising the Sarzonian government for no going further in eliminating what they have termed 'economic statism'. It is thought that many CPI memberstates are interested in acquiring Sarzonian companies cheaply before they recover their full projected value, and are angry that Sarzonia is currently exempted from economic 'reciprocation' rules designed to encourage a free market in dealings with Praetonia.

'In essense, we want an end to exemptions from reciprocation. A policy of Total Reciprocation is in order - any state which refuses to operate on a level playing field does not deserve special patronage. We believe that removing Sarzonia's exempted status in particular will encourage them to drop their trade barriers at least in bilateral terms,' said an representative of the CPI on Questiontime this morning. Under current rules, Sarzonian business may invest to whatever extent they wish in Praetonian firms (with the exception of those protected by 'golden shares') but Praetonian business is still subject to Sarzonian regulation.

The Prime Minister has refused to comment on removing Sarzonia's exempted status but has said that 'we welcome what has been done by the Sarzonian government and expect more deregulation to follow. It is quite possible that we may take active steps to encourage such deregulation, at least with respect to trade with Praetonia'. The Treasury has reclassified Sarzonia from a level 1 ('extremely poor') trading environment to a level 5 ('average'). Before the PIW-fuelled stock market crash, Sarzonia was rated at level 2 ('very poor') largely because of its 'protectionist trade barriers and stringent regulation'. The same ratings currently list Praetonia as level 8 ('very good') and Pacitalia as level 10 ('excellent').

CPI companies are currently putting together a massive investment package worth http://img.photobucket.com/albums/v387/Praetonia/PraefeliSymbolL.png210bn ($400bn) which will most likely entail to purchase of several non-protected Sarzonian companies and buying up of shares in dozens more, including PIW. It is hoped that this investment package will stimulate the Sarzonian economy without necessitating gifts of Praetonian taxpayers' money to Sarzonia and Sarzonian companies.

Official Department of Defense Memorandum

TOP SECRET – NOFORN

Under Subsection 11(D), Paragraph 3 of the 1989 Official Secrets Act, and Subsection 1(A) of the 2006 Department of Defense Official Secrets Act Addendum, it is a criminal offense to obtain, read or in any way access this document without proper CODE INDIGO Security Clearance as detailed in Paragraph 34 of the 2006 DoD OSA Addendum. Anyone found in possession of this document, a copy of this document, or in possession of any details found in this document without prior security clearance will be sentenced to Life Imprisonment in Fort Galileo without the possibility of Parole.

From: General Leo Fairfax, Joint Chief Of Staff – Army
To: Secretary of Defense Paul Hoover
CC: Strategic Reserve Chairman Oliver Harten

It has come to the attention of the Joint Chiefs of Staff that in the wake of the Sarzonian economic crisis over the bidding of the Sarzonian company Portland Iron Works (PIW) in the Space Union catastrophe, the Incorporated Sarzonian Military is willing to sell off large amounts of military equipment that the ISM has but is no longer needed in the face of the economic downturn and various strategic decisions.

With the end of the Civil War, it has come to the attention of the Joint Chiefs of Staff, particularly the Army, that the equipment that the military of the Grand Monarchy is substandard in comparison to that of the Sarzonian Armed Forces and of many other countries outside of Haven, and indeed inside of Haven. The use of M1A2 Abrams MBTs and F/A18 Fighters is no longer sufficient to allow the Armed Forces of the Grand Monarchy sufficient tactical flexibility in the field, as well as to engage enemy forces on an equal or superior basis.

It is the finding of the Parliamentary Committee on Defense Requirement, jointly taken with the Pentagon and the Joint Chiefs of Staff, that all available reserve military funding be allocated and presented to the Sarzonian government for the express purpose of purchasing as much military equipment as can be afforded, and more if economic loans can be promised to the Sarzonian government in gold or other economic assets of the Grand Monarchy.

(Handwritten Appendix Follows)

Paul, Oliver, you’ve read the memo, but I don’t think you realise quite what the situation is with our armed forces. Even before the Civil War, our military equipment wasn’t exactly state of the art, for which I blame your predecessor Oliver – not your fault. It was only by the grace of god that we didn’t get into any major wars that would have put our equipment against any power with more than a basic military. Hell, Nerotika was bad enough on our equipment, especially with the breakdowns in the tanks out there, and the Bradley’s were practically useless as times. If we’d ever gotten into a real shooting war before the Civil War, we would have been hard pressed to win it with the stuff we had.

The situation now, after the Civil War, is even worse. I don’t think I need to remind you of the god-awful abilities of the Abrams and Bradley’s in the Battle of Portsmouth and Port Stanley. If Martin had pulled in some new technology from a sympathetic ally and bought it forward at the Battle of Chatham, our losses would have been tremendous. I’ll be blunt now; the ISM is selling off all of it’s equipment, and we need it. Badly. All of it, whatever it is, we should get it. Hell, it’s not a good thing when those Volunteer Brigades have better equipment than the main forces have.

Leo

(Appendix II Added, 7/3/2006)

I agree, and I’ve discussed it with the King. He’s agreed to allocate all available funding to purchase whatever equipment the ISM is selling – and will allocate more funds and promissory notes to the Sarzonian government if they have any more equipment than our present funds can cover. He was at Chatham, and he knows we need this stuff urgently. We’ve sent a message to the Sarzonians asking if this will be acceptable, and now we wait.

Paul



To: President Mike Sarzo, Incorporated States of Sarzonia
From: King Alexander I, Grand Monarchy of Skinny87
RE: Equipment Purchase

It has come to the attention of the Grand Monarchy and its Armed Forces that the ISM is selling off large amounts of military equipment. The Grand Monarchy and the Royal Armed Forces are desperately in need of this equipment and any more that you may possess; to this end, His Majesty’s government will pay for all surplus equipment you currently possess, as well as extend promissory notes to your government to cover further purchases if needed. I personally will ensure that these funds and notes are fulfilled, and hope that this transaction will prove profitable for both of our nations.

Alexander I

[OOC: Strong language warning.]

Shit, it's wearing off.

Hedge eyed Tucker warily as she began to wake up from the sedative injected in her to keep her from going on her usual rampage about how much she hated to fly. Having a company CEO, especially one whose company had fallen so dramatically from grace, create a scene in a foreign country where they don't exactly welcome visitors with welcome arms was even worse for business than a modern-day Enron.

Tucker awoke from her stupor and peered out at the sky. She took a deep breath, conscious of her reputation for being somewhat of a diva when it came to flights. She was also aware that whatever it was that was injected into her gave her a rare chance for sleep. That sleep seemed to be all too rare in the wake of news reports of a plummeting economy and not so veiled calls for her head.

"Where are we," Tucker asked.

"We're on the way to Techopolis, Novacom," Hedge said. "We're going to be discussing a deal that could help us begin a recovery from this recession."

"You mean depression," Tucker all but whispered. It was impossible for anyone in the plane to know, but even if she'd been awake from the start of the flight, she would have cast a sombre figure for its duration. Much as she hated to fly, she hated what people perceived as her role in the Sarzonian economy's steep decline more than she would a flight to a strange land.

"Well, it's technically called the Panic of 2006 by most of the media, but yeah," Hedge said. "All I know is it's time to put our best faces on and see if we can accomplish something from this deal. Maybe we can create some jobs and start making a dent on those unemployment rolls."

Both women stared straight ahead as they waited for Techopolis to come into view.

******************************

"Mr. President! Mr. President!"

"Okay, George. Let's have it."

"What is your reaction to the Parliamentarian report on the Economic Recovery Act?"

"I haven't had a chance to read the article yet so there's no reason for me to react to something I haven't read."

"Basically, they're calling for increased liberalisation of our economy and removing barriers to reciprocation, at least where Praetonia is concerned."

"We'll study any potential amendments to the Economic Recovery Act," Sarzo said. "Right now, that measure is going to buy us some time to begin the long road to recovery. As it stands, however, I can understand if our lawmakers are leery about casting too much of our lot with foreign entities with the decline in Paci-Sarzonian relations fresh on everybody's minds."

"Are you saying that because Pacitalia's relations with Sarzonia have declined that you're not going to consider reciprocation?"

"Let's not get into another round of recriminations," Sarzo said. "The fact remains that we still need to ensure that Sarzonians remain employed and that Sarzonian economic fortunes are not tied to a trading partner only to find out that we end up having to sever diplomatic and economic ties with that nation."

"Are you saying you're concerned that Praeto-Sarzonian relations could head south?"

"No, George. What I am saying is that we need to ensure that the right safeguards are in place to prevent us from being financially crippled if we tie our fortunes with a nation and then end up severing ties with them. I don't think Praeto-Sarzonian relations are at issue, and if they were, I'm sure Tiberius [Polax, the Praetonian prime minister] would be on the phone with me right this moment outlining his nation's problems with us and I'd be telling him what I find wrong.

"Praetonia and Sarzonia have long enjoyed a special relationship," Sarzo said. "The FCTC have assured me that Praetonian investments would most likely have no problems being approved and they've said the term 'foreign investors' is, quote, end quote, 'open to interpretation'.

"As it stands, the current Economic Recovery Act does not include provisions for exempt nations or further liberalisation, but the Act was put in place to instigate immediate reform. I encourage Parliament to study the prospect of adding amendments that will further bolster our economic outlook or present new legislation that will continue where the Economic Recovery Act leaves off."

"Any other questions? No? Thank you for your time."

[Sarzonia, 10,000 shares doesn't look right. Sony has 3.6 billion shares on the global market, given the PIW's profits equal the GNP of some third world nations I think something along the lines of a billion shares would be more appropriate. I'll edit my post if you agree.]

The announcement by the Praetonians caused the Scandavian corporations waiting in the wings to pre-empt their own purchasing plans. For that reason, the Bureau of Business and Trade was to be flooded with requests for acquisitions. However, a mere four letters would start the avalanche.


-----------------------------------------------------------------------------


..::Galicia Mineral Extraction Inc, 256QKb Encryption (Embedded Key)::..
TO: Janis Hedge, Vice President for Business and Commerce
FR: Alexandre Gutierrez, Chief Financial Officer of GMEI
SUB: Share Acquisition of Memphis Mining

In light of the recent relaxation of trading laws within your nation, Galicia Mineral Extraction is interested in acquiring the maximum allowed shares at the current trading price of $59.54. We have already been cleared by the Trade and Commerce Service for this transaction and now need only seek your approval before we begin buying shares.
..::End Message, End Quantum Encryption (Embedded Key Good For One Reply)::..


..::Library of Alexandria Publishing, 64Kb Encryption (Embedded Key)::..
TO: Janis Hedge, Vice President for Business and Commerce
FR: Jasmine Madari, Chief Financial Officer of LAP
SUB: Majority Share Acquisition of Houghton-Mifflin Publishing House

My company, Lirbary of Alexandria Publishing, is interested in acquiring 60% of all shares for Houghton-Mifflin at the current trading price of $34.82. Obviously such diversification can only lead to increased sales and profits for both companies, given the fact that both of our nations contain quite the collection of readers. The acquisition has already been cleared by the Trade and Commerce Service and need only be cleared by your office before purchasing can begin.
..::End Message, End Encryption (Embedded Key Good For One Reply)::..


..::Arkangel'skie Voennye Sistemy, 1024QKb Encryption (Embedded Key)::..
TO: Janis Hedge, Vice President For Business and Commerce
FR: Olena Bader, Chief Financial Officer of AVS
SUB: Acquisition of PIW Shares

AVS is interested in purchasing 15,000,000,000 (20%) shares of Portland Iron Works at the present trading price of $79.80, which sould come to a total cost of $1,197,000,000,000. This acquisition has already been approved by the Trade and Commerce Service and now AVS seeks your approval as well. The reason we do not buy more is two-fold: one, we are aware that PDI wishes to buy into PIW as well; two, the bit remaining after the purchase should leave plenty to be snapped up by other corporations.
..::End Message, End Quantum Encryption (Embedded Key Good For One Reply)::..


..::Phoenix Defense Industries, 1024QKb Encryption (Embedded Key)::..
TO: Janis Hedge, Vice President For Business and Commerce
FR: Wai-Ling Tse, Chief Financial Officer of PDI
SUB: Acquisition of PIW Shares

PDI is interested in purchasing 15,000,000,000 (20%) shares of Portland Iron Works at the present trading price of $79.80, which sould come to a total cost of $1,197,000,000,000. This acquisition has already been approved by the Trade and Commerce Service and now AVS seeks your approval as well. If it were not for the fact that PDI believes that only competition can bring Sarzonia's economy out of the gutter, so to speak, we would also purchase the remaining 5%.
..::End Message, End Quantum Encryption (Embedded Key Good For One Reply)::..

[OOC: No offence, but I dont think you can just assert that you pre-empted my companies, especially as I kind of posted first, although I don't mind some sort of bidding war. Out of interest, are those posts public? I assume they are not intended to be, as they are encrypted, but generally share acquisitions legally have to be made public (otherwise there isnt much point in a market, since no one can really outbid anyone else since they dont have a clue what's happening until it's too late.

<reserved for IC post once above is cleared up>]

Portland Press Herald

Stocks soar on Nedalian buy in

by Jon Conway
Press Herald Staff Writer

8 MARCH 2006 -- In one of the most visible signs that the nation's economy could be inching its way toward a recovery, the Portland Stock Exchange closed trading with its biggest one day improvement since Black Monday, with the market up 1,200 shares, gaining 1.8 percent in value following the announcement (http://www.3wideracing.com/forums/index.php?showtopic=1040) of an agreement with regional neighbours Nedalia.

The move would create jobs in retail and manufacturing by opening computer component and construction plants along with retail and warehouse space that is expected to provide thousands of jobs nationwide. In addition, Nedalia also announced a massive order at the Portland Iron Works, which is expected to confirm the order and hire thousands of workers to handle the massive construction.

"That was a major shot in the arm," said Vice President for Business and Commerce Janis Hedge. "We are seeing concrete signs that investors are beginning to return to Sarzonia after the events of Black Monday. Hopefully now, we'll be able to move forward with the business at hand, ensuring that our recovery is for the long term."

The Portland Iron Works have also lifted their anti-production rights stance in the wake of the Nedalia order, opening the door to the prospect of friendly nations being granted domestic production rights to several PIW products. The newly de-merged Avalon Aerospace and Incorporated Ordnance Companies are expected to follow suit.

"We have been concerned in the past with proliferation of weapon designs," said PIW's acting managing director, Commodore Jamie Wilson (ISN-Ret.). So long as we ensure that the right sort of nations are able to produce the weapons in question, we should be able to allow production rights so long as we are able to ensure our own people are able to remain employed in manufacturing."

Hedge also said the Incorporated Sarzonian Government has declined to comment on reports that Praeton is considering removing Sarzonia's exempt status due to "protectionist" trade barriers, but a source familiar with her thinking pointed to President Mike Sarzo's "offhand remark" that "foreign may be in the eye of the beholder."

"We've seen the best of bilateral alliances fall by the wayside," said Deputy Senior Vice President and External Affairs Officer Grant Haffner when asked about Sarzonia's seeming reluctance to grant exemptions to Praetonia. "That said, our relationship with Praetonia is one of the strongest bilateral allegiances in the world. We'll be happy to discuss the possibility of granting them an exemption to some of our regulations on foreign companies."

A spokeswoman for Lieutenant President Nicole Lewis said that possible exemptions for Praetonia and other nations being considered would "most likely," not apply to companies considered strategically vital to Sarzonia. She mentioned Portland Iron Works and Memphis Mining Company in particular as two companies that would remain no less than 55 percent under Sarzonian control.

"If they are interested in establishing themselves as above and beyond the restrictions, they're welcome to come to Woodstock to discuss that possibility," the spokeswoman said. "I'm sure Sarzo wouldn't mind seeing them come." The spokeswoman added that with representatives of the United Kingdom of Isselmere-Nieland's government en route to Woodstock to propose what some analysts are predicting would be a link between the lethse and the dollar, Sarzo would most likely welcome the Praetonians to the same discussions.

"They're the two nations that would most fit the profile," of nations who would merit an exemption to the act," the source said. "Those are two of our longest-standing allies and friends and both nations have been supportive of us where others fell away." While the Incorporated Sarzonian Government remains non-committal about possible exemptions for both Isselmere-Nieland and Praetonia, a source close to the Administration said they were the two nations Sarzo had in mind when he said "the term 'foreign investors' is 'quote, end quote open to interpretation'."

"Technically, they're foreign since they're sovereign nations under different governments," the source said. "But I doubt the law would be applied strictly to either nation. Yes, there'll be some discussion and some formal shaking of hands and signing of contracts, but that comes with the territory."

Vice President for Defence John Newman was waiting for the report on the equipment sell off when he was sent a copy of Alexander I's letter to Sarzo. He scanned his list of equipment and looked through it for items that were most capable of being sold rather than scrapped outright. The lists in front of him included everything from a ready reserve list that could be pressed back into service immediately upon a declaration of war to items that no longer fit into Sarzonia's plans to items that just weren't worth saving.

Looks like the Skinnians are interested in getting whatever they can from us," Newman said as he saw Vice President for the Home Guard Bill Lighton walk into his office. Lighton brought his own list of equipment that could be sold or scrapped and presented it to Newman.

"Oh?"

"Didn't you get a copy of the memo?"

"No."

"Becky must still be forgetting that you're in the Cabinet," Newman said. He raised the letter up to let Lighton read it. "Have a look." Lighton scanned it and smiled slightly.

"Looks like we may get something for all this stuff after all," he said.

"That's what I'm hopin'. Then we can focus on keeping our newer stuff without worrying about the old shit."

Lighton smiled. The good news was beginning to roll in now.

***********************************

"Janis, have you had a chance to study the proposal yet?"

"I'm still working on it, Mike," Hedge said as Sarzonia One was taxiing on the runway preparing to take off for the flight to New Copenhagen. "I don't think a $450 billion donation now would be good for long-term stability," she said.

"What do you mean?"

"You're aware that even a massive donation to help an economy could bring it more instability, right," Hedge asked.

"I've had that pounded into my head thanks to those damn wops," Sarzo grumbled.

"Mike!" Sarzo grimaced in response, so Hedge continued. "We can discuss with them a more modest economic relief package now that new investments are starting to come in and the new deal with Nedalia is on its way to being ratified in the House."

"Janis, need I remind you that we're only now beginning to crawl out of the Grand Canyon here? We're going to need more than what we're getting so far."

"Look at it from this perspective Mike," Hedge said. "We're close to the cat being let out of the bag about the PIW investigation now that Barker's in Hoover. We've just inked a massive deal with Nedalia that's going to provide some badly-needed jobs in our IT and retail sectors. We've got a meeting with Isselmere-Nieland and hopefully Praetonia and perhaps that'll mean we'll be able to recover sooner, rather than later.

"Any of those things on their own would be good signs. Combine those things together and you have all signs pointing to an economic recovery. If things continue to look up, I doubt very seriously that we'll need the $450 billion in aid from the Imperium. I'm not saying we reject that amount out of hand, but if their investments combined with other investors ponying up, they could provide a much more modest inflexible aid package."

"I'm not sure about that Janis," Sarzo said.

"I'm proposing what we do is set out our own aid proposal, but we can downgrade it to a more modest amount, say $150 billion combined with some of the investments they've offered. We could use the new armour and if they can shed some insights into addressing our energy needs, that'll have a greater benefit than just helping us recover from the depression. And, we won't have to worry nearly as much about dragging their economy down with ours."

As the G-forces began to push the occupants of the jet back into their seats to begin the physical journey to New Copenhagen, the negotiations between Sarzonia's official government business person and its chief executive were just beginning their journey toward a united stance on just what kind of aid package the Sarzonians were going to ask for.

As they Approached Technopolis, they would see a great light in the distance, presumably they would have been closer until redirected. As they descend through the clouds they would see the coast in the Distance, as they near they would begin to make out a great cliff wall, and below that nestles a great lake, in the center of it rests a large isles, upon it a city reaches for the sky, around the great rim of the lake the city stretches, covering Isle and shore it stands tall, with many a tall building of strange construction, in the distance, on the Cliff Wall would be a great Canyon Entrance and at it would be seemingly guarded by two gigantic statues, rising majestically bearing great spears in their massive mountain hands, at the base of the canyon entrance a great ruckus was in seeming progress as many banners were waved and people garbed in primitive amour marched forwards.

Technopolis shined at them, the light of the sun shining brightly upon the cities many tall spire like towers, on the island at the very center, raises the tallest tower of them all, and around it the buildings seemingly bow down before it. The wide streets of the city are seemingly devoid of traffic as many people walk freely down them, and many street side cafe's are open for business as Novans laugh in the sun dining out in the sun, while lovers walk down the streets gently nuzzling each other, and Personnel clad in Black and Yellow went down the streets in machinery diligently cleaning the streets of the strangely sparse amount of litter around. The Airport itself rests at the foot of the great Cliff, huddling into it the terminals seemingly carved into the rock itself, a massive set of runways dotted with towers stretches out from them and several planes are waiting on the runways.

A Trio of Tokons would swoop in close cawing crazily, their birdlike forms easily keeping pace with the craft, they glimmered brightly in the sunlight as they flew around the plane, slowly going down the plane's entire length, before forming up on the left wing and cackling as they flew away, transmitting only one thing, "Physical Inspection complete Cleared for landing," as they soared over to another aircraft and began to circle that.

As the plane would begin it's final descent a closer view of the city could be seen, many flags would be hung from the buildings, the streets were wide and well kept, the air was pure and clean and great many parks dotted the city, on isle and shore, the lake itself was alive with activity, with a great many boats dotted around idly sailing round, to the south of the city stretches a great forest and beyond that only distinguishable by a distant glare is a legendary desert. The Airport Terminals would jut sharply out of the cliff face, many faceted and crystal like they would reach for the skies, as if grasping fingers from gigantic hands poked out of the cliff, a present day so far with bright sunshine and a gentle breeze and birds only depicted in ancient mythology flew freely through the skies, Phoenixes, it was fairly warm at a agreeable 32 degrees.

Once Landing would be complete, directions being shown in great detail from NARD and something known as Cyberax the plane would be linked to a Skybridge.

"Minister Beckett, Sir, they'll be landing shortly, I think it's time we go down to the disembarkation point," An Enforcer would briskly salute finishing, the minister would merely nod and be lead through the great expansive hall like halls favored in Novan Arcihecture, the groups shoes echoing throughout the great cavern like expanse as they descended down a set of wide stairs, the black marbled walls swirled with Green and the great White, almost needle like pillars pleasing to the eye as they descended, to enter another area with a great deal many pillars, arrays of benches around the pillars as Monitors ascended and descended the pillars and Personnel milled round attending to duties, not a scrap of litter graced the floor as a Cleaner went round with a buffer thrumming away on the floor, the part of the building facing out to the runway, a great wall of glass showed a clear blue, almost cloudless sky as the sun shone highly from above, the only Obstruction were the Blocks of Black marble like wall surrounding the Entrance to the skybridge, in front of it was a set of desks manned by Capitol Enforcers armed with computers ready to perform customary security checks, in between a pair of the desks the Minister and his group awaited, a fairly low key event the Minister reflected as he idly ruffled his tight head of ginger curls.

[Novacom, unless I totally missread his post he's flying to New Copenhagen, my capitol. Praetonia, if you go back to my initial post you'll note that my corporations were already waiting in the wings, it was just a matter of moving up the timetable. While I don't mind a bidding war, keep in mind that presently I'm just attempting to clear the buy with Sarzonia's version of the SEC. AND WHY HAS NOBODY ANSWERED ME ABOUT THE FOREIGN RESERVE DUMPING?!]


Once word had come down that Sarzonia One was in the air and heading for New Copnehagen, something very strange happened. Half of the Imperial air defense radars in Haven stopped their constant frequency hopping and simply began aggressively searching for targets, every "ghost" retun resulted in such a hard increase in gain on such a narrow beam that had the ghost been a stealth aircraft, its electronics would have likely been fried. Of course, the other radars continued to frequency hop in a very unpredictable manner and put out much weaker signals comparatively, which made them all but indistinguishable against the background.

Naval patrols, mostly destroyers and cruisers, but every now and then a squadron of battlecruisers, roved everywhere in Haven that was considered regional waters. No territorial waters were violated and the freedom of the seas respected, but ships coming into Imperial ports or Imperial waters were vigorously and thoroughly inspected, where possible. Ports were closed to foreign warships, except those belonging to close allies, as a general security precaution

In New Copenhagen, preparations were being made to properly welcome President Sarzon and his delegation. A feast in his honor was being prepared, with every duke and duchess to be present with their families, the various service heads (those that weren't dukes or duchesses) with their families, and the Royal Family itself. Rooms for Sarzo and all his staff were being prepared; however luxiurious some of New Copenhagen's hotels could be, they were nothing compared to New Copenhagen Palace. Besides, it was a matter of honor and hospitality.


[EDIT: Er, been talking to Sarzonia and he cleared something up about the travelling arrangments. Consider this a pre-emptive post.]

[OOC: I strongly suggest someone provide some *answers* to SS's question about exactly how much currency got dumped. Forget it. It's not a suggestion. It's a requirement for your continued participation in this thread.]

"I hear the place is supposed to be beautiful," Hedge said as Sarzonia One slowly began its descent toward Technopolis. She looked off admiringly in the distance as the jet started its initial approach to the landing site.

"Uh huh," Sarzo said. He wasn't paying that much attention to scenery. At least not now. Not while he was still preoccupied with his nation's efforts to scramble out of its worst economic crisis. Besides, appreciating the scenery was Tyler's job and he was puttering around the Gray House. Sarzo's responsibility was to examine the offer and, if he liked it, bring it to the House of Delegates for a vote on a measure that could help Sarzonia crawl out of its economic depression once and for all.

He looked on the Internet for information on the PSE's reaction to the latest economic news, but the exchange had just closed for the day and the market closed only two tenths of a percent up from yesterday. He looked at the briefing provided by the Sarzonian Secret Service about Novacom and noticed the comment "somewhat xenophobic" with a grimace. The fact that a large delegation of Sarzonians was about to land in Novacom in a scene befitting Matthew Calbraith Perry's opening of Japan wasn't lost on anyone in the SSS.

"We've been cleared for landing. Everyone get freshened up. We don't want to look like shit on our first visit to Novacom," Sarzo said. He glanced in the mirror and quickly washed his face. Hopefully, that'd be enough to get him through the negotiations.

[ooc: Hamptonshire dumped slightly more than 5 trillion with Pacitalia dumping a smaller, but similar, amount.]

ooc: I figure I best at least answer the question in an ooc matter and so the magic number is (drumroll please) a whopping 113.6 billion, okay so not a large amount I know, but sensible given the IC dislike between the UK and Sarzonia. And it was all dumped, just to make clear.

[OOC: All participants please move your OOC posts to this thread (http://forums.jolt.co.uk/showthread.php?t=472460). Any future OOC posts should go there too.

Also, the letter in this post is set prior to Pacitalia resigning from the Woodstock Pact.]

Nicole Lewis was shifting through her papers when she saw one that had somehow slipped her mind. She raised her eyebrow as she opened the envelope labelled "for your review." She opened it and saw it was a letter that was addressed to The Economist. The note attached to it said, "Nicole, please forward with your up or down vote. Grant."

Sir -

It is altogether unfortunate that I must write this letter to you regarding the state of Paci-Sarzonian relations as they currently stand in the wake of their prospective resignation from the Woodstock Pact by Pacitalia. Some of the statements from Prime Minister Constantino Sorantanali suggest that he may be taking steps to repair the fractious state of bilateral ties between our countries. To listen to our president talk, that is a priority for him.

However, I must take the rare step of disagreeing publicly with my President. The fact that Pacitalia has yet to offer a concrete proposal that isn't tantamount to blackmail against my government and my people and has only given lip service to mending fences with Sarzonia, along with the fact that Sarzonia has shown an ability to recover from the economic crisis without substantive Pacitalian help has demonstrated that Sarzo-Pacitalian relations really are, or at the very least should be, at an end.

No government that "suggests," as their government has claimed they have merely done, rather than the demand which their calls for President Mike Sarzo's resignation have really appeared to be, should then turn around and claim they are striving for improved relations with that same nation. It hasn't just been the current administration that has made such a demand on my President. Your previous prime minister, Timotaio Ell, made a similar demand of the President. Only a last-minute save by the First Partner prevented the light of scrutiny from rightly falling on the heads of your nation's arrogant administration.

In addition, regardless of what you might read from Pacitalian politicians, their resignation from the Woodstock Pact is a positive and necessary step for the greater good of the Pact. The fact remains that nations such as Mass Pwnage or a National Socialist-governed Guffingford are considered among Pacitalia's friends. That stance has prevented the Woodstock Pact from standing up for democracy and freedom against such tyrants because they wish to protect their precious neutrality. Let that be the nail in the coffin toward ideas such as their laughable rant that Sarzonia is anti-democracy.

This time, those moves toward economic intimidation and browbeating can not go without public knowledge. It is time that the Democratic Capitalist Republic of Pacitalia pay the price for their insolence in the one way that would hurt the most: I urge any business leaders or ministers of commerce to examine other options besides Pacitalian businesses or close ties with a Pacitalian government that is clearly not interested in anything other than browbeating the Incorporated States of Sarzonia to mold it to their way of thinking.

Grant Haffner
Deputy Senior Vice President and External Affairs Officer
Incorporated States of Sarzonia

Lewis almost instinctively stood up and yelled "GRANT," even though Haffner was supposed to be leaving for the day. However, he was close to her office.

"Yes?"

"Did you send this letter?"

"Which one?"

"The one to The Economist?"

"No, I was awaiting your approval."

"Good. Don't."

"Why not?"

"That's one sure fire way to completely sever Paci-Sarzonian relations. That's the last thing we want to do."

"Nicole, they're the ones who have been pushing us in this direction. It's time they find out what kind of impact that can cause them."

"Grant, don't send the letter. That's all I'm going to say. If you send that letter, I'll fire you myself."

No sooner had the aircraft landed when it was directed to move to the Terminal building, once there with an almost haunting efficiency a Skybridge extended out and connected to the forward hatch of the plane, Mechnicians, their black uniforms adorned with an emeraled green hue swiftly set to work on checking over the craft.

The walls of the Skybrdige were lined with several airport Personell, all standing at a stiff attention, a fiercely fanatic gleam lit their eyes as they did the Novan Salute as the group passed by, at the end of the Skybridge awaited the Minister and his Entourage, a gentle almost fitful music emenated throughout the large Terminal building, a noise, like a tinkling of crystals would chime throughout the building and an announcement, first in the cryptic Novan Language and then in english would echo out, "Flight NT-XKMN306/9a to Daous is now boarding at gate 118A/2B"

Beckett eyed up the Sarzonian craft through the window, I only hope that nothing goes wrong, The other ministers are watching this carefully I'm sure,casting aside his doubts he stood ready to greet the Sarzonians, beside him stood the foreign office official, and to his other side stood a Mechnician from Novacom Manufacturing, this would be a momentous day,

When the Sarzonians did eventually exit the skybridge he would step forth, his black and deep sky blue robes swirling around him as he called out grandly, Welcome to Novacom, and welcome to Technopolis,

Khailfah News Network

In today’s news, The CEO of the State Banking Corporations - Edmond Jacob Safra, has announce that the State Grants and Loans Company will be sending to Sarzonia , a large loan package of 250 billion dollar to aid the nation to restore its economy back to pre recession levels and higher, 50 billion of this loan package will be invested in the Sarzonia steel production companies and other heavy industries of Sarzonia, all in the effects of helping the nation of Sarzonia get back on its feet once again.

Delgado was reading The Parliamentarian during a break between committee meetings in the immediate wake of Parliament's passage of the multi-partisan reform legislation that was meant to address the long-term ailments that affected the Sarzonian economy. He was well-versed with the business and military relationship between the two nations, and people from all sides of the Sarzonian political puzzle supported Praetonia. Any anti-Praeton faction in Sarzonia was often relegated to the extreme factions that seemingly look for conspiracy theories in everything from budget appropriations to gridball scores.

As his eyes scanned Page 2, he hit the headline, "PM welcomes liberalisation, expects more," and started narrowing his eyes. His eyes, which lilted easily through other headlines and stories started to scan slowly, carefully. His left hand set the publication down onto his desk while his right hand habitually reached for his pen. He averted his eyes briefly, then grabbed the pen and took it to the notepad he kept with him at all times. He began to scribble down key points from the article.

This ain't going to be easy, Delgado thought. Getting the Economic Recovery Act approved was a difficult endeavour in itself. Getting a nation to codify in law certain rights that were considered as having the force of law in spite of their not being written laws was going to be extremely difficult. If Delgado wanted to give Praetonia an official, legal exception to the restrictive foreign investment laws when years of legal precedent gave them and Isselmere-Nieland the same preferential treatment without such a law, he would have to do some major bargaining. Including perhaps compromising on the one law he was adamant about not compromising his principles upon: The issue of same sex marriage.

Working into the night, Delgado scribbled down more notes and a loose outline, which he photocopied and placed into a folder marked "Immediate Attention Needed." He then took the original home with him and worked well into the early hours of the morning. When he woke up five hours later, he slouched into his chair with a 25 page document handwritten that he gave to his secretary. Six hours later, he walked onto the Senate floor with a bill that he was convinced would have little chance of passing muster, but he was going to give it a shot anyway.

"I wish to propose a bill that, if passed into law, would be called the Economic Reforms Act of 2006," Delgado said, rising in his seat. "At the onset of the next fiscal year, the following changes to Sarzonian economic law would take place: One, restrictions against foreign ownership of Sarzonian companies would be lifted, but all sales would be pending the approval of the FCTC. Second, certain Sarzonian companies, such as Portland Iron Works and its former subsidiaries, Memphis Mining, and other companies that are considered vital to Sarzonian national security would be under a 'golden share' provision whereby they may not fall into foreign hands. Third, for purposes of this legislation, 'foreign nations' would not include either the United Kingdom of Isselmere-Nieland or the Democratic Imperium of Praetonia." Delgado's bill also included a fourth provision, aimed toward paying back the loans sent by the Kalifah al Mussilmeen government, but that provision was not going to be debated too heavily. Sarzonia would pay its loans back, and it was interested in establishing much stronger ties with the Kalifah al Mussilmeen.

Delgado looked intently as the murmurs overtook the floor. As he predicted, the tenor of opposition to the third provision was questioning the need to create an exemption in writing that was considered well-established by precedent. He held up a copy of the article from The Parliamentarian.

"It seems as though our well-worn legal precedents don't carry the weight of law in the minds of our Praetonian brothers and sisters," Delgado said. "Sarzonians have long prided themselves on making their word their bond and if our closest allies and dearest friends question our committment to creating a level playing field, we must take an action which I would hardly consider drastic. We're talking about putting official teeth behind an unwritten law that we've bound ourselves to anyway. That shouldn't be considered anything like reinventing the wheel."

The minutes after Delgado's bill introduction turned to hours as a marathon session prior to the Easter Recess continued with debate from all sides that threatened to do everything from water down the bill to filibuster it to defeat it outright. Eventually, the bill passed the Senate by a 28-26 margin. The House took up the measure and passed it by a 291-259 margin. In an action that surprised many, Sarzo signed the bill into law. The legislation was not aimed at a short-term recovery like the Economic Recovery Act of 2006 had been. This was a fundamental, long-term change in the way Sarzonia did business. Literally.

Now Delgado and the rest of Parliament could take their Easter break.

Woodstock Daily Mail

Investment deals 'big boost' to recovery efforts

by Greg Bonner
Daily Mail Staff Writer

PORTLAND, 17 April -- Within minutes of each other, three Sarzonian companies announced new stock investment deals with the Al Muslimeen Joint Stock Companies worth a combined $578.75 million, providing an influx of foreign investment as Sarzonia continues its efforts to dig out of the Panic of 2006.

The deals await official approval by the Federal Trade and Commerce Committee, but sources close to Chairman Lyle Cheneyworth said approval was likely.

"These deals are just what the doctor ordered," the source said. "Sarzonia needs an influx in investment to begin sooner, rather than later. This is a sign that confidence in the Sarzonian economy is being restored."

Memphis Mining chief operating officer Linwood Collins said the company was looking for a way to ensure that any potential investors followed the new laws enacted in the Economic Recovery Act as well as provide Memphis Mining with the foreign investment Collins said the company was looking for.

"We believe the deal offered by the Joint Companies is an excellent deal that would provide Memphis Mining with needed capital while at the same time shows the world that we have seen ourselves through the rough waters and are sailing for home."

The largest transaction, a $440 million purchase of 8 million shares of space and aerial industry leader Parsons Aeronautics was hailed by Parsons chairman Kaylie Bennett as "the right deal at the right time.

"This deal could not have come at a better time for us to begin our ascent into the upper reaches of world businesses," Bennett said. "Parsons Aeronautics needed to make a statement that we belonged on the world stage and this deal makes that very statement and more."

Executives with Sarzonian Business Machines (SBM) were unavailable at press time, but a statement hailed the deal.

The Al Mussilmeen Joint Stock Companies "are a world leader in economic investment. We are confident this deal will benefit both the Khalifah al Musilmeen government and people and the Incorporated Sarzonian Government and our people."

The Portland Stock Exchange ended the day's trading up 120 points, but analysts are predicting that stocks will "skyrocket" when the PSE opens tomorrow. The announcement came a half hour before closing time.

[OOC: It's time to wrap this RP up after such a long time... in fact, a resolution to this RP is loooong overdue.]

The response in the Portland Stock Exchange wasn't as sudden as most forecasters expected and there were still plenty of fits and starts as a combination of economic stagnation in Pacitalia and worldwide instability made the Portland Stock Exchange lurch forward in gasps and bursts. However, it was clear after the Federal Trade and Commerce Committee approved the deals with Khailfah al Musilmeen businesses that a recovery was underway.

Roughly a month and a half after the deals with the three businesses were announced, the PSE gained roughly 40 percent of its original value lost as Sarzonia began to spiral into an economic downturn that threatened to dwarf the Great Depression in scope and worldwide impact. New construction contracts with the Portland Iron Works and other companies also signalled to most domestic investors that Sarzonia's economy was back on the rise.

And yet, something was missing. As Sarzo woke up one morning and read a copy of the Woodstock Daily Mail's international news supplement regarding the latest in the political row between Oceania and the Khailfah, he turned to the next section and read something about a potential Cabinet revolt in Pacitalia. Sarzo drew his breath in slowly and exhaled with a laboured sigh.

With Constantino Sorantanali in power, the prospect of a repair in relations between Sarzonia and Pacitalia was even less than a pipe dream. If someone had offered a script, Nicksia would have rejected it out of hand as being a fool's errand. The two nations were enemies in all but name after having been among the closest of friends for a long time.

After Sarzo made his way to his private office in the Gray House and he sat down with a cup of coffee, he heard a knock on his office door.

"Come in."

Deputy Senior Vice President and External Affairs Officer Grant Haffner walked in with a piece of paper held out with his right hand and a fountain pen in his left hand. Sarzo looked up at Haffner closely and down at the paper.

"What are you trying to do, make me sign my life away?"

"No, Mike. This is an official notice expelling the Hamptonian diplomatic corps and Hamptonian citizens from Sarzonia."

"In other words, completely severing diplomatic relations with Hamptonshire. And why are we doing this now?"

"They know far too much about what's going on here for a nation with whom we have no relations."

"Grant, they never recalled their embassy and consular staffs. They never gave orders to their citizens -- er, subjects -- to leave Sarzonia. And if you're thinking they're spying on us, almost every country in the world spies on everyone else. I think Isselmere-Nieland and Praetonia are the only two nations in the world we don't spy on."

"Actually, we don't spy on Izistan either," Haffner pointed out. "And our intel forces in Skinny87," he began.

"I get the point," Sarzo said. "But the timing of this is rather interesting. Hamptonshire haven't done anything to us since the Seaburg conference."

"That's just it," Haffner said. "They haven't done anything but continue to paint us as a nation looking for a freebie."

"You're going to get your knickers in a twist over what nations say? If that's the case, I'm surprised you don't jump off the Overpass everytime the Doomies condemn us over something."

"The fact remains that Hamptonshire still has some semblance of a presence here in Sarzonia," Haffner said. "It's time to close that door once and for all." He set down the paper and pen on Sarzo's desk and stepped back three steps. "I'll leave that here for you to sign. Think about it. They've never been great friends of ours, not even when Leo was the Grand Duke."

Sarzo looked up at Haffner as he referred to Reginald Leopold I but before he could say anything, the deputy had left. Sarzo looked at the sheet of paper, which was a notice giving Hamptonshire 72 hours to recall its diplomatic and consular staffs and have its subjects departing Sarzonia. He picked up the pen and lowered it to mere centimetres from the paper and sat there in thought for a moment.