NationStates Jolt Archive

Island somewhere in the Atlantic

The government of Kahanistan was still trying to sort out its place in the world - literally and figuratively. It had refugees fleeing the Havenic invasions immigrating into hundreds of different countries, both legally and illegally. Most of its military had been lost in the last war, and the government had yet to formulate a clear plan for the future - economically, militarily, domestically, or socially.

President Khalid bin Abdullah al-Omari, the leader of the provisional government, announced that some time in the near future, elections would be held - Kahanistan had not yet replaced most of the senators who had been murdered by wild animals on Doomani TV (which could be received in Kahanistan - it wasn't like there were efforts made to block it.)

Right now, the President sat in an office in a modest three-story house, this serving as the Presidential Palace. This house was situated on top of a mountain in the middle of the island, and surrounded by wooden and metal shacks and tents, and watered by wells; the new Kahanistan was, despite the trillions of dollars in aid being shipped in, now a Third World state, still casting around for contractors to build new infrastructure, cities, housing for some 125 million people, and funding the defence of the nation - speaking of which, the military was in need of serious rearrangement, foreign policy needed to be revisited, the economy needed to be started up again with some of the aid that was flowing in, and the pride of a defeated nation had to be restored.

As such, President al-Omari convened a think tank, inviting intellectuals, generals, economists, and others he believed capable of offering meaningful suggestions on how to face a catastrophe unlike any the nation had faced before. He had provided an agenda for discussion.

Agenda of the Conference on the State of the Republic

1. The Government of Kahanistan needs to reform its foreign policy in such a way as to prevent such disastrous invasions in the future.

2. Failing that, a way is needed to form allies who will not run at the first sign of what is commonly called a "dogpile."

3. A clear economic policy for Kahanistan is needed that will improve the economy to pre-war levels without aggravating the already severe poverty that has accompanied the destruction of most of the nation's infrastructure.

4. Military industry is needed to provide for the national defence and defence of interests abroad.

5. Foreign policy needs to shift away from our current practices of denying embassies to states we consider hostile - it hampers discussion of critical issues and allows them to fester into war.

6. After the main issues have been resolved, the floor will open to allow other issues not previously considered to be discussed if considered germane to the state of the Republic.

Ministry of State

If permitted, the Vetalian government would gladly send a team of some of our most skilled economists, financial analysts, bankers and managers to aid your country in its reconstruction. As you know, our country's aptitude for business and finance is virtually unrivaled by any other nation on Earth and we would be capable of rapidly rebuilding your economic infrastructure for further development.

For the meeting, we would send the President of the Vetalian Central Bank, Viktor Aksyonenko, to your country to provide input on the best plans for future reconstruction.

From:Grand Chancellor Wenceslas of the Holy Empire of Wubmuffets
To: President Khalid bin Abdullah al-Omari


After reviewing the situation currently present in your nation, it has been decided to extend an offer of limited support to you, in exchange for certain favors.

The Holy Empire of Wubmuffets has a strong economy and firm political leadership. Leading experts in the area of fiscal management and experienced political officers can be put to your service. All that is asked in return is that we be allowed a permanent residency on your island.

This residency will include living quarters for our offered aid, and suitable security staff, an Embassy, and staff including security, as well as a small force of peace keepers who can act as a security force if necessary.

Needless to say, if this offer is refused, reprisals would not be a primary option.

With kind intentions,

Grand Chancellor Wenceslas
of the Holy Empire of Wubmuffets

[OOC: I hate arrival posts, so just feel free to drop in assuming you have reasonably good relations with Kahanistan.]

Official Response of the Provisional Government

This is acceptable. We have yet to build an airfield, so a helicopter launched from a carrier is probably optimal.

President Khalid bin Abdullah al-Omari

The Vetalian delegation's helicopter, brightly emblazoned with the seal of the Ministry of Trade. It landed gracefully, and within a short time the aides and personal guards of the President had prepared the landing site for him to exit. Viktor Aksyonenko stepped out, dressed impeccably in a suit and tie that were likely worth more than a year's income for the richest Kahanistanis. His aides were somewhat less extravagant, but their clothing nonetheless was incredibly reflective of each official's rank.

"Greetings. I am Viktor Aksyonenko, President of the Vetalian Central Bank and Vetalian delegate to this council. With me are my aides from the ministries of trade and finance, and behind me are the guards dispatched to protect our delegation for the duration of the meeting."

Surveying the area around him, he continued "It looks like your country can use our help. I've brought a considerable amount of paperwork with me for your government's use, mostly the economic data and theory your government will need to reconstruct the economy."

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Official Diplomatic Message

The United Socialist States of Cynapsia is moved by the plight of the Kahanistani nation and its workers, and would like to assist. To this end, we would like to send a representative of the United Socialist States to the Republic of Kahanistan to discuss infrastructure investment by our own country, and also to provide an alternative viewpoint to the ideas of Capitalist redevelopment of the Republic's economic situation through the utilisation of our own political-economic system.

President-Kommissariat Maximillian Zachary Coltrane.

(OOC: I know you said skip intro posts, but we've never RPed together before, so I thought it might be polite to introduce myself and see if it was okay to join in.)

[OOC: You ought to turn K'stan into a tax haven, 0% corporate, sales, tarrif duty taxes or something. That would speed up rebuilding and industrialisation by lightyears.]

OOC: That's exactly what we do with Vetalian enclaves, Questers. By the time we're finished, you have an economy twice as rich as Singapore or Hong Kong right in the middle of your country.

Naturally, we will encourage similar policies here.

Official Response of the Provisional Government

We welcome the intercession of the Cynapsian government and that of... Wubmuffets. You may arrive at your leisure.

President Khalid bin Abdullah al-Omari

---

"Let me see the documents," said the President. He was a little leery of Vetalian advice - he was a socialist and felt that capitalism was a form of exploitation of the poor. On top of this, war propaganda during the recent war with the Questarian Commonwealth had claimed that the Commonwealth had intended to destroy socialism, end gay marriage, deprive women, Arabs, and blacks of the right to vote, and impose Catholicism, among other nefarious goals.

"Of course. It is our country's magnum opus, the collected sum of our country's economic research over the past 80 years, both public and private. I would not be surprised if a copy of the Journal of Vetalian Economic Research is the main economic journal in every economics and business school on Earth."

"It should provide you with extensive amounts of data for economic development, especially our emerging markets research. Our government will donate 10-year free subscriptions to every university in your country in addition to copies of the archives. Obviously, it is far too large to bring in paper form, so we have storied it online for your use. Of course, you are free to obtain paper copies as well, if your internet infrastructure is too limited to utilize that service at this point in time."

"Very well," said the President. "I'll have the Finance Minister look it over. Of course, to read the entire thing would take far longer than we have to get our economy on track... there are competing political factions who each want a slice of the aid we've been given - the military wants some to build a navy, the Communist and Socialist Parties want to expand social welfare for the poor, business interests have suggested that we become a tax haven and let every fat-cat CEO from here to Xirnium set up businesses here... tax-free, and we'd end up being little more than cheap labour."

"Perhaps a good plan would be to create special economic zones, with low or no taxes where companies could invest and take advantage of the low-cost labor in your country. The rest of the country could still retain the tax structure needed to fund social benefits, and as the economy grows you could begin phasing out the SEZs and harmonize the tax structure in your economy."

The President frowned. He did not like the idea of his people being reduced to the status of coolies.

"How would the people living in these 'special economic zones' make enough money to live on? It is unlikely that a rich CEO would pay workers enough, and if we subjected them to our own minimum wage laws, that would drive off many corporations." Kahanistan's minimum wage was four shekels an hour - pre-war this was around eight dollars, now it was more like eight cents.

"I don't see why you couldn't retain minimum wage laws in the zones...zero taxes should be more than enough to ensure companies comply with your other laws."

"This seems reasonable." The President nodded to a woman next to him, who checked something off on her clipboard. "We should probably also discuss our military, and our foreign policy."

The woman smiled and nodded. She was the Minister of Foreign Affairs; she would be most interested in hearing advice on foreign policy - she was not the most qualified for the position, but most of the other applicants had been unacceptably radical.

"Foreign policy first. We are in a situation where our allies, for the most part, are entangled in alliances that prevent them from defending us. Many of our allies were, in fact, also allied to the Questarian Commonwealth! Now, of course, that doesn't go for all of them, but we need to form new political ties, new alliances that won't drag us into too many wars, and alliances in which we can pull our own weight."

Official Diplomatic Message from the Republic of Droskianishk

The Republic of Droskianishk would like to aid the people of Kahanistan in rebuilding their nation. The Parliament of Droskianishk has consented to the deployment of 4,000 military advisors for the purpose of training the Kahanistan military, and is ready to deploy 10,000 more Droskian military personell (for security purposes) should the Kahani Government request them. The Republic of Droskianishk is also willing to aid in rebuilding the Kahani military with armor,planes, attack helocopters, transport helocopters, naval equipment, etc. The Republic is also willing to send financial advisors and other civilian specialists, and is more than willing to work under a Vetalian International Chair.

Minister of Foreign Affairs,
Mr. Aziz

The Minister opened her laptop, intending to take notes, but there was a message in her inbox.

Official Response from the Free Republic of Kahanistan

The Government of Kahanistan is most willing to accept these advisors. We have our own weapons designs we prefer to use; the construction of factories to produce these weapons would be preferable.

Even in these dire times, our engineers design numerous new arms to protect our nation's interests, though production is necessarily low.

Rachel C. Levitt,
Minister of Foreign Affairs

Skies above Kahanistan

The Droskian Transport Helocopter 15 (DTH-15), slowly made its way towards the Kahani capital, flanked on either side by a Droskian Attack Helocopter 15 (DAH-15). On board was a Mr. Hadrid, Undersecretary of Foreign Affairs, as well as Brigadier General Uskak Hudor who was to be in charge of Droskian efforts to rebuild the Kahani military. These men were to be the first to arrive in order to begin a dialogue with the Kahani over the future of that nation and to decide where and how Droskian military advisors should be deployed.


"This is Droskianishk Falcon 1 to Kahani Air Control" spoke the Droskian Helo Pilot.

The Kahani controller recognized the Drosk air craft and gave them permission to land. As the Drosk helo came in for a landing the Undersecretary could only hope to himself that someone would be there to greet the general and himself...

Skies above Kahanistan

The Droskian Transport Helocopter 15 (DTH-15), slowly made its way towards the Kahani capital, flanked on either side by a Droskian Attack Helocopter 15 (DAH-15). On board was a Mr. Hadrid, Undersecretary of Foreign Affairs, as well as Brigadier General Uskak Hudor who was to be in charge of Droskian efforts to rebuild the Kahani military. These men were to be the first to arrive in order to begin a dialogue with the Kahani over the future of that nation and to decide where and how Droskian military advisors should be deployed.


"This is Droskianishk Falcon 1 to Kahani Air Control" spoke the Droskian Helo Pilot.

The Kahani controller recognized the Drosk air craft and gave them permission to land. As the Drosk helo came in for a landing the Undersecretary could only hope to himself that someone would be there to greet the general and himself...

There was no air control - yet. The helipad was a patch of fenced-in rock, from where the Presidential Palace was visible as a three-story building with the Kahanistanian flag flying. There were several dozen soldiers milling about on top, and a young man in uniform greeted the arrivals.

"I am Colonel Aleister Beckett, the director of the Presidential Security Detachment," said the man. He was in his mid-20's - far younger than most Colonels - and had been promoted when his predecessor transferred to the diplomatic corps. Of course, barring some outrageously heroic deed, he was unlikely to see another promotion until he was in his 40's.

"The President would like to meet you."

The two gentlemen stepped out of the helo and introduced themselves.

"I am Undersecretary of Foreign Affairs, Mr. Hadrid"

"And I'm General Hudor", the general peered at the young Colonel.

"And we're most excited to meet your president," exclaimed the Undersecretary a bit over-anxiously as the Helo lifted off behind them.

The two men followed the young Colonel.

Colonel Beckett led the two men to where President al-Omari was talking to the Vetalians. He was an overweight, tall, bearded Arab man in his late 50's, in a Western suit.

"Colonel," said the President. "These must be the men from Droskianishk. This is Rachel Levitt, the Minister of Foreign Affairs." The President nodded to a short woman with reddish-brown hair, a butch haircut, and large breasts, who appeared to be about 40 years old and somewhat athletic.

The Minister smiled. "Sit down. We have a lot to discuss about the running of this country."

"Of course" said the Undersecretary, whilst he and the General shook hands with the Minister. And then took their seats. "Please pick up where you left off"

"We were discussing the state of our economy," said President al-Omari. "Now, we were moving on to foreign policy and military policy."

"If possible, I would recommend maintaining as low a defense budget as possible during the initial phase of recovery. Military expenditures can drain away from other sectors and impair the overall reconstruction of your economy.

However, given the significant remaining threats, this may not be particularly practicable."

" If your hurting, the rebels must be hurting, watch funds, freeze them if you have reason to believe rebels are using them, if you can prove rebels are using them, take the funds and use that to aid your already set military budget" spoke up General Hudor.

"We don't have problems with rebels," said the President. "This is a democracy. People who have problems with the way the government runs things will simply vote for a politician who will run things differently."

"Exactly. That is why your government should redirect funds from the military to education and infrastructure."

Some people never learn
Sir Henry Fitzwilliam argues that if its present leadership remains in power, Kahanistan's future is likely to be as bleak as its past.

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Desperately poor and realising the need to spend huge sums on defence, Kahanistan is nonetheless sticking with the old Socialist dogma.
___________________
From 'The Herald'
Business Section

Kahanistan has been ravaged and destroyed by war for the third time in its recent history, and at last the country is beginning the realise the need to maintain a strong armed forces to defend its populace from opportunistic powers. Despite having a number of wealthy and generous backers, however, the new Kahanistani state is still economically desolate and living on the back of foreign charity.

The decisions the new state makes in the next few months will be crucial, especially as continuing poverty will threaten to plunge the country into civil war. Unfortunately, instead of being invested in productive enterprises, much of the foreign aid money is being divided up between various political factions to be spent on their favoured state programmes, while the overall leadership continues to consist primarily of myopic Marxists whose support for redistribution astonishingly remains unwavering.

The question it is impolitic to ask in Kahanistan at the moment is, 'redistribution of what, exactly?' The sum of present Kahanistani wealth is a foreign endowment which, although nominally large, is unlikely to last the year supporting the huge number of refugees in shelter, food and water. The money is going back abroad in exchange for consumables that will soon be gone. The Kahanistani Government - and the Kahanistani people, for such consistently left-wing governments could not have survived for so long in Kahanistan without some popular support - must realise that if they lack any productive industry they cannot continue to consume resources forever.

And yet the Kahanistani Government seems to have no desire to create productive industry. In pursuit of its campaign against "fat cats" it has succeeded not only in ensuring that there are no billionaires in Kahanistan but that there are no jobs or factories either. If Kahanistan wishes to prevent another tragedy - if it wishes, in other words, to amass sufficient wealth to be able to afford a military capable of resisting invasion - it must accept that productive individuals be allowed to grow rich on their efforts, and foreign companies be allowed to employ its citizens. As yet, there are signs only that Kahanistan will deregulate in a few select areas, and even then only partially. This is not a tenable policy. Kahanistan has hundreds of millions of people who need work and an income - development must occur everywhere, and it must become self-sustaining as quickly as possible, lest the foreign largesse run dry.

There seems, however, to be no popular will for change. If they understand what is wrong with their situation at all, ordinary Kahanistanis do not seem able to ascribe blame to the correct people - the socialist governments they persist in electing - as opposed to ambiguous foreign "fat cats" whose presense they have successfully eliminated anyway. It is a certain fact that numerous international banks and companies would jump at the chance to spend the foreign capital that is pouring into Kahanistan with no strings attached on developing Kahanistani industry, and yet the popular mood is set against that.

Kahanistanis, it would seem, prefer to take their chances with starvation over taking a dependable income in productive employment from a foreign "fat cat". Some people never learn.

Sir Henry Fitzwilliam, KKG, FRIE is an Emeritus Professor of Economics at King Sarius I University, Kingston

Reading online copies of the Praetonian The Herald as well as the Vetalian Financier, which had reprinted the editorial in its own opinion section, Asonyenko nodded silently in approval. It was true, and he looked for a way to diplomatically express this concept to his hosts.

"The socialist system will not be able to finance the level of reconstruction necessary to provide your people with anything more than a minimal level of income...you may have equality, but it will be equality in poverty. Again, I strongly suggest a gradual move towards a market economy as part of your reconstruction program."

"We could have a plan drafted in fairly short order...a social system is not incompatible with a market economy, but socialist economics simply do not provide the efficiency necessary for a dynamic modern economy."

The Foreign Minister was all for the idea. "I'm not much of an economist, but I see your point," she said. "I wouldn't trust the Praetonian press myself, it's notoriously biased toward the Questarians. Biased or not, we do have to do something about our economic strife, and I think that certain special economic zones are a good idea."

The President was less thrilled. "I was not elected to bring capitalism to Kahanistan. I was elected to protect this nation, and to prevent people here from growing rich on the backs of the poor. I'd have to see what the Senate thinks of the plan, though, once we get one hammered out to submit to them, then they'll run with their version."

Across from the interim palace, construction was commencing on the Senate Hall. Until it was finished, however, individual Senate committees met in the Presidential Palace, or the Senate at large met in an array of tents, not unlike an old Native American gathering of tribal councils.

Lord Southfield had just emerged from an Imperial Navy helicopter, whitewashed to indicate its diplomatic cargo and peaceful intentions. He was to be the new Praetonian ambassador to Kahanistan, and he marvelled at the squallor he saw around him. He was accompanied by a second man, quiet and gruff, wearing a pin-striped suit and a bowler hat. The two men approached the 'Palace,' which the aristocrat likened to a gamekeeper's cottage he had recently had demolished and replaced on his estate.

They went inside, and Lord Southfield greeted the President, "I am pleased to meet you, Your Excellency," he held out his hand, "I am the new Praetonian Ambassador to Kahanistan. There hasn't been one since the Midlonian coup. Things have certainly changed since then - bloody bad business, with the war.

"Anyway, His Majesty has instructed me to address you about a proposed treaty. He would like you to agree to a free trade with Praetonia and a cap on corporation tax of 10% for 10 years on Praetonian companies operating in Kahanistan. In exchange, as much as 20% of the Kahanistani populace is expected to be employable within the next two years.

"Furthermore, He offers Kahanistan membership of the Crown Currency Zone, which would allow Kahanistan to mint Crowns - a stable currency - under supervision of the Imperial & Commonwealth Bank. Replacing the rapidly inflating and untrusted Shekel would be a serious economic advantage, I'm sure you will agree."

Official Diplomatic Communique

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To: Whoever it may concern; Kahanistan
From: Alexander Nevskij, Minister of Foreign Affairs, The World Soviet Party

Greetings,

We have heard of your past troubles with nations such as Doominsgland, are we are utterly horrified at the way you and your population have been treated.

However, we are also happy to see that your nation is trying to rise to it's feet again, a task that is both difficult and fullfiling.

Thus, we are willing to donate one hundred (100) billion universal standard dollars to aid in your reconstruction process.

We would also like to arrange a meeting, if possible, within the next few weeks to discuss the possibility of long-term aid and support to your nation, please answer as soon as possible.

Signed,
Alexander Nevskij, Minister of Foreign Affairs, The World Soviet Party.

"You ask a lot of me," said President al-Omari. "The Shekel is a part of our national identity, and I was elected to preserve the socialist system. I can't see the Nationalists going for this, though they may agree to certain economic zones in which poor people can seek employment." "The Senate may have differing views; many just want to see the poverty end here and now, with no regard for political principles or national ideology. Maybe we should discuss this with the Senate Economic Committee. If they want to throw away our currency... that is for the next administration."

It was clear the President personally disliked the Praetonian idea, but was not politically in a position to unilaterally veto it - if poverty continued to mount, he might be blamed for inaction and would be unlikely to be re-elected. By putting it in the hands of the Senate, if it passed over his veto, he could blame the Senate before the people for selling out to the Praetonians.

Al-Omari nodded toward a short, skinny red-haired man of about 40 years old, who stood up, his longish hippie hair and immaculate Western suit making a very ugly combination.

"Angus McKimble," said the man. "Minister of Commerce. I personally think this idea of yours is a good one. We're in worse shape than an African hell hole. The idea I have is a special economic zone in the capital, where corporate tax will be 10%, but corporations who do business here will still have to pay minimum wage."

"Perhaps a revaluation of the shekel, with its value temporarily pegged to a basket of currencies containing both the Crown and the Vetalian ruble, two hard currencies of high value and easy convertability, would be a better solution than integrating them in to another currency zone. As you may know, Vetalia has already granted a sum of rubles for the Kahanistanis to use as foreign exchange and backing for their currency."

"In addition, we would agree to similar terms as the Praetonian proposal for the creation of special economic zones. However, our country is receptive to counterproposals by the Kahanistani government. The Vetalian business community will have no qualms about paying minimum wages to your workers, and we will likely pay higher than that amount for skilled labor. Our companies are interested in creating a lasting Kahanistani market for our goods, not simply looting it for cheap labor."

Official Response from the Free Republic of Kahanistan

We are more than willing to discuss aid from the World Soviet Party and the development of productive industries.

Angus McKimble,
Minister of Commerce

"Pegging to a basket of currencies will be more politically palatable," said the President. "Gold, or platinum, would be good to have to back our currencies even further, no matter what our final plan is."

Official [Secret] Communiqué to Kahanistan

The Collectivist Oligarchy of Murra urges the Kahanistani government not to trust foreign capitalists seeking to establish these so-called "special economic zones" and equally special "corporate taxes". They are only trying, through subterfuge, to gain control over the Kahanistani people and reduce them to inferior status in their own homeland, to remain poor while another nation's bourgeoisie's wealth is enhanced. We firmly advise Kahanistan to take the final step and ban private enterprise and private property completely, and kick these annoying foreigners out of the country. They can go mess up their own capitalist hellholes and enslave their own proletarians if they wish.

Alexei V. Kasugin
Senior Oligarch for Administration, Foreign Affairs, War, Trade, the Environment, Urban Development, Social Justice, Deporting People To Work In The Copper Mines, and Cute Slogans

Asonyenko smiled knowingly. "The Vetalian ruble is worth more than gold, at least to those who know how much wealth is backing it. I'm sure your country has additional deposits for this purpose, and we would be glad to lend you gold from our reserves, but it may not be necessary. The full faith and confidence of our people alone should be enough to convince others that the shekel is a secure store of value."

"In fact, if we do so little as mention we are considering supporting your currency, its value will soar overnight."

Official Response from the Free Republic of Kahanistan

We are more than willing to discuss aid from the World Soviet Party and the development of productive industries.

Angus McKimble,
Minister of Commerce


Free Republic of Kahanistan,
Goverment Centre

Yet another helicopter touched down in Kahanistani soil this day, this time however, it carried no economists but diplomats hailing from The World Soviet Party.

The small group of men and women got off their transport as soon as it touched the ground, and presented themselves to the proper authorities, waiting to be recieved and going through their notes, preparing their suitcases and documents, and most important, going over the offers they would give to the people of Kahanistan.

The guards at the palace let the Soviets through and pulled up chairs for them. Meanwhile, President al-Omari continued talking to the Vetalians.

"If you can support our currency in this manner, it would be most appreciated," he said. "Rachel, are you taking notes?"

The Foreign Minister nodded. "Yes," she said. "I'll have them sent to the Senate. In the meantime, I think that foreign policy and some kind of defence policy need addressing."

OOC: Can I assume I was let into the conference? If not, disregard the following post.

IC:

The Soviet Delegate, Ambassador Koslov, cleared his throat to get the atention of the Kahanistani president, he stood up and put his briefcase over the table proceeding to open it.

"We might be able to answer to your need of military factories" he withdrew a document from inside the briefcase "As you might know, Soviet Arms Corporation, which is owned by the Soviet goverment, is a large arms producer with interests throught the world, as well as a clean record.

Thus, we would be willing to set factories here, avionics, small arms, tanks, whatever you want to produce, and of course, having noted you have no need for foreign weapons, we would be willing to produce Kahanistani designs as well, which would given to your military at a fraction of the original cost.

This, of course, would create thousands of jobs, and trust me, we dont pay minimum wage, we always pay as much as we can, as a worker with a good salary equals a good consumer."

"Not 'no' need," said the President. "Limited need; we have many domestic designs. We will, of course, consider your corporation as a possible supplier."

"Not 'no' need," said the President. "Limited need; we have many domestic designs. We will, of course, consider your corporation as a possible supplier."

"Of course, we acknowledge the fact that you have and will recieve more offers of this kind, and patience is a great virtue" Koslov smiled "Oh, and before I forget, who should I deliver the hundred billion dollars to?"

"Well, I'm the President," said al-Omari. "You can have it put in the vault, one of the higher-ranking guards can take care of that."

"Well, I'm the President," said al-Omari. "You can have it put in the vault, one of the higher-ranking guards can take care of that."

"Of course" The ambassador handed the briefcase to the guard point by the president and sat down again "I have one question though, what are Kahanistan's main reconstruction goals, infrastructure, healthcare, education, defense?"

"Infrastructure has to come first," said al-Omari. "Otherwise, no matter how much money we put into healthcare or defence, we're running a Third World system. Education is a very close second, we need a skilled labour force so the prevailing economic climate doesn't reduce us to a cheap source of coolie labour."

The Droskian Undersecretary spoke up "Droskianishk will also be willing to back the Kahani currency, our ungak is worth approxiamately 2.16 USD. HOwever I must advise against the Praetorian offer if building an industrial backbone is your desire. Droskianishk will be willing to match half of whatever monetary aid given Kahanistan by Vetalia in low interest loans without compensating for inflation."

"I understand, then the most important issue as of now is to procure building materials and equipment, am I right?"

"What we need for an industrial backbone is simply our own infrastructure," said the President. "That is not mutually exclusive with the Praetonian offer of establishing businesses here. If you are willing to help us in the construction of new infrastructure, that is of course acceptable."

The Commerce Minister nodded at the Soviet delegate.

Ambassador Koslov thought for a minute, then turned and called his aide who promptly spoke.

"The World Soviet Party is a resource-rich nation, we have very important wood and steel sectors and thus would be able to start shipping it, along with the necessary machinery, as soon as required.

That is, if you want the fast and easy way, though the less beneficial to your economy.

That brings me to the second option, which includes The World Soviet Party and other willing nations bringing advisors and professors to Kahanistan and teach your workers how to extract, refine and build all that is needed."

"Droskianishk is ready and willing to aid in any way requested"

"Our country produces many fine engineers, architects, and technicians who could work with TWSP engineers to rebuild infrastructure, and we have many advanced industries that would be willing to send staff to help create technical institutes and the like across the country."

"In addition, we feel the Droskianishk proposal is a good idea. Their loans will help your country rebuild the credit rating of its bonds and other securities, which will be key in helping finance further reconstruction."

"We're poor, not unskilled," said al-Omari. "Then again, much of our working class sided with the Nationalists and remained in Haven, and even if they survived Exterminatio..."

"Well, I feel that certainly a vocational workshop of some sort should be opened, to train new labourers."

"Undoubtedly the ranks of skilled laborers have been depleted due to war and genocide, and those who are left have likely not been able to upgrade their skills effectively for some time. Our government will provide paid volunteers to work in your country and help assess the skill situation in your country."

"This is acceptable."

A messenger interrupted at this point to speak with al-Omari, and inform him of the arrival of 3 heavy-duty cargo plans from the Holy Empire of Wubmuffets.

On board these planes are the the experts that had been promised in the field of economics and politics, a small peace keeping force numbering around 150, and the staff of the yet to be established embassy.

While they are prepared to contract local workers, they are carrying some materials so as to begin construction of their enclave immediately. The new Ambassador to the Provisional Government of Kahanistan is the Grand Chancellor's nephew, Sirkot Gealach.

Ambassador Gealach is said to have a weakness for drink and be prone to rash actions. Whether this is true or not may be discovered when he joins the meeting.

The economic advisers will do their best for the provisional government, as they have been told to, while the political officers will give advice and... propaganda that will keep any government from toppling.

The orders of the peace-keepers have been said to be to co-operate fully with local forces, but it is not unknown for ambitious commanders to attempt to do a little bit extra. The commander is a relative unknown, a commoner, which means that the Ambassador will be the real person in charge.

With the presence of this force, small but still potent, will the Holy Empire of Wubmuffets have to much influence? Will any other nations react in similar ways? Will the provisional government react?

More importantly, can the new experts work freely to help this nation, or will politics keep them from their good work?

There was no drink at this meeting. The last time the Foreign Minister had attended a meeting where drinks were served, she'd ended up sleeping with the leader of Mer des Ennuis. At 40, she still had a good ten or fifteen fertile years left. Getting pregnant on the job was not in her description.

President al-Omari nodded casually. "Bring them in."

"You ask a lot of me," said President al-Omari. "The Shekel is a part of our national identity, and I was elected to preserve the socialist system. I can't see the Nationalists going for this, though they may agree to certain economic zones in which poor people can seek employment." "The Senate may have differing views; many just want to see the poverty end here and now, with no regard for political principles or national ideology. Maybe we should discuss this with the Senate Economic Committee. If they want to throw away our currency... that is for the next administration."

It was clear the President personally disliked the Praetonian idea, but was not politically in a position to unilaterally veto it - if poverty continued to mount, he might be blamed for inaction and would be unlikely to be re-elected. By putting it in the hands of the Senate, if it passed over his veto, he could blame the Senate before the people for selling out to the Praetonians.

Al-Omari nodded toward a short, skinny red-haired man of about 40 years old, who stood up, his longish hippie hair and immaculate Western suit making a very ugly combination.

"Angus McKimble," said the man. "Minister of Commerce. I personally think this idea of yours is a good one. We're in worse shape than an African hell hole. The idea I have is a special economic zone in the capital, where corporate tax will be 10%, but corporations who do business here will still have to pay minimum wage."
"I do not think that you are aware of the reality around you, Mr President. In order to achieve even a subsistence level of per capita production, you must move hundreds of millions of people into work from a base of no infrastructure and little disposable income for consumer spending in just a few months. Your plan to create a minute zone of sensible business legislation and relative prosperity will certainly do no harm, but nor will it be anywhere near enough to rescue the vast majority of your populace from their unenviable fate.

"You should be aware, Mr President, if you are not already, that as a socialist government yours has openly avowed responsibility for the well-being of the people. When the foreign aid runs out, and your country turns to even greater poverty and ruin than it is in already, you have no means of deflecting blame. An unhappy majority in a stable and relatively prosperous democracy may respond to this with an unfavourable vote, but a starving and angry mob is likely to seek a more violent form of redress.

"You seem to think that His Majesty is making demands of you - he is not. He is asking only that you abandon your pointlessly self-destructive policies. It is not his business if you refuse, it is yours. More bizarrely, you seem to believe that you are in some position to make demands. Praetonian companies do not and will never be required to pay your minimum wage, Mr President - they will simply choose not to locate here at all. This may harm them compared with being able to relocate to a pro-prosperity Kahanistan, but it will harm Kahanistan and, I must stress this again, you personally, much much more. As for national pride - I mean it literally when I say that you cannot afford it.

"This is no time for half measures. If you are to act then act now and act decisively. If you intend merely to cling to the mistakes of your past, there is little that His Majesty can do for you."

"You make much of the fact we have little disposable income," said the President. "And you think we will have much more if we cannot make a subsistence wage working for Praetonian companies? We would be slaves, little better off than we would have been had we simply stayed and been sold off by the Doomani." He turned to the Foreign Minister. "Of course, this is just the opinion of one politician. Rachel, have you copied the text of this offer down?"

"Yes," she said. "The gist of it. My opinion on it is it's a bit exploitative, but we aren't in a good negotiating position. I say we go with it, but like you said... it's up to the Senate."

"Good. I'll have them schedule an emergency vote on it for tonight," said al-Omari. "The fate of this nation is not, and never will be, in the hands of one man. I am not a dictator."

[OOC: Is that the original offer, or the ammended one that only involves a small special economic zone?]

"You people are idiots," is what the Ambassador wanted to say. Instead, he said, "Yes, Mr President, your people will make more in employment than out of it. That is self-evident. It is worrying how willing people here are to accept Marxist economic dogmas, that have been long-since abandoned in the developed world, without questioning, but as you say it is out of your hands. I thank you for passing on His Majesty's proposal, and I hope your Senate will reach the correct decision."

[OOC: What will most likely happen is the original offer will be sent to the Senate, but they'll end up having to modify it so they can get it passed once it makes it out of committee because the Senate is full of Communists. Of course, the Vetalian suggestion of economic zones will be mentioned and will likely feature in the final version they pass.]

"I hope they come up with something we will find mutually acceptable," said al-Omari. He dispatched one of his guards to go to the Senators' tents to round them up for an emergency voting session for that night.

" The Republic of Droskianishk will be willing to set aside approxamately 200 Billion USD to help start Kahani businesses, without setting any roof on tarriffs which will protect and foster the growth of those businesses. The only requirement will be that the Kahani government have minimal oversight over these funds, i.e. they go to private businesses which will allow a Droskian financial expert on their board to advise, of course minimum wage laws are acceptable as well as some other basic rights." the undersecretary spoke up as he got off his cell-phone.

"More bizarrely, you seem to believe that you are in some position to make demands. Praetonian companies do not and will never be required to pay your minimum wage, Mr President - they will simply choose not to locate here at all. This may harm them compared with being able to relocate to a pro-prosperity Kahanistan, but it will harm Kahanistan and, I must stress this again, you personally, much much more. As for national pride - I mean it literally when I say that you cannot afford it."


"Then I must say that your Praetonian companies are no better than slavers, and that the Kahanistani people are probably better off without you or your economic influence.

Kahanistan must strive to build a self-sufficient economy, to be able to support itself before even thinking about selling out to foreigners.

So, basically, my point is that if the Praetonians wont follow the law, then Kahanistan is and will always be good without them. Of course, this is just my opinion."

"I think that can be incorporated into the bill the Senate will vote on," said President al-Omari.

We need to have some kind of foreign policy that doesn't attract invaders. Of course, that won't happen if Praetonia gets too much influence - they're allied with the Questarians.

"As much as I hate to admitt it, I agree with the communists on this point. If Kahanistan is to be independent and sovereign they have to decide their own laws and then enforce them, and if that means no Praetorian businesses then that means no Praetorian businesses." said the Undersecretary.

"Kahanistani minimum wage is significantly less than the lowest wages in Vetalia, so we have absolutely zero qualms about using your country for future investments. Since our focus is more on the productivity of our workers than the cost of labor, our companies would be willing to pay higher wages provided the workers deliver on this additional investment."

http://i7.photobucket.com/albums/y273/blast_archives/nebank.png

NeBank, Adygea's foremost leader in the banking industry, is prepared to consolidate a portion of the Kahanistani national deficit, up to as much as twenty-five percent, with a loan discount of forty percent. This will allow the Kahanistani government, in times present and future, to be less worried about the situation of their coffers. With the proposed plan, payments would be due every month, on the first of that month, but we will also accept small intermediate sums over four-week periods, provided that that sum equals the amount due for the month.

Aurum Domus Department of Commerce\

We would like to make a deal to buy the mining rights to any precious metals or gems in your country. We will build the necessary facilities and bring as many as 10,000 jobs to Kahanistan as long as we retain ownership of the resources.

"One thing I must add though, is that to sustain this hypotetical economic growth, you will need a very good infrastructure that is, as of the moment lacking, with your first priorities being hospitals, energy and running water.

Now, the energy is the most vital of those three, as it will power the other two. Thus, I am forced to inquire, what are your energy-producing capabilities, and what means of energy do you favour?

This will help us and the rest of the honourable delegates here think how can we best help you rebuild Kahanistan."

"Praetonian. Not Praetorian," said Ms. Levitt to the delegate from Droskianishk. "I think we should at least look at the average Praetonian wage and compare it to our minimum wage, and maybe we can compromise from there. Right now, though, it looks like Vetalia will be the biggest investor here."

She typed off a brief message to NeBank accepting their offer.

However, the leadership of Aurum Domus got a characteristically negative response from her.

Official Response from the Free Republic of Kahanistan

10,000 jobs out of an estimated 40 million needed, and you want unlimited rights to our natural resources? Piss off.

Rachel C. Levitt,
Minister of Foreign Affairs

Aurum Domus Department of Commerce

We will ignore your rudeness but the 10,000 was an estimate. You have not informed us of how many or what kind of natural resources you posses. Furthermore, we are only interested in the precious metal and gold market. Not all your natural resources. Tell us how many job you believe is a reasonable amount and we will see what we can do.

Ambassador Gealach entered the office. He looked around, face carefully neutral, before addressing himself to the President.

"My apologies for being late Excellency, but I couldn't get away till after the troops had started setting up camp", he said as he sat down.

Whether by coincidence or design he chose a chair next to the Foreign Minister.


"I've sent the economic advisers along to your treasury and the political officers went to the local TV station. I'm not sure what they are going to do," he said with a slight shrug, "but I'm sure it will only be a help to your country".

Passing over a small folder he then said, "Here is the information on the peace-keepers I brought. If you'd like to browse that while I catch up on what's been discussed already."

With that being said, he turned away from al-Omari and said to the FOreign Minister, sitting next to him, "Tell me, are you doing anything for lunch?"

"Then I must say that your Praetonian companies are no better than slavers, and that the Kahanistani people are probably better off without you or your economic influence.

Kahanistan must strive to build a self-sufficient economy, to be able to support itself before even thinking about selling out to foreigners.

So, basically, my point is that if the Praetonians wont follow the law, then Kahanistan is and will always be good without them. Of course, this is just my opinion."
"I did not say that Praetonian companies will locate here and break the law," the Ambassador said to the unnamed Soviet, irritated that his words had been - he believed deliberately - twisted by the Marxist, "I said that if the Kahanistani minimum wage - I do not know what it is exactly - makes locating here not worthwhile, they simply will not come, removing any obligation on their part, legal or otherwise, to pay it. A 'self-sufficient economy' is a nonsense concept - Praetonia certainly does not possess one. Interdependence is not a weakness, it is what allows global trade to create prosperity. If Kahanistan wishes to survive, it is something that must be embraced.

"The average Praetonian wage, for instance, is hardly relevant. Praetonia is a developed country with a huge, affluent customer base and a competitive labour market. Kahanistan is not. Praetonian companies will not relocate from Praetonia and similar countries in Haven and abroad - at hefty cost - to get exactly the same deal in Kahanistan, only with worse infrastructure and distance from customers increasing costs.

"I am afraid that the communist bloc here has little grasp of economics or what is necessary to create prosperity. If you will not trust anything I said on national or racial grounds - despite the fact that Praetonia has not fired a single shot against Kahanistan in her history, and has even offered to protect Kahanistan from Midlonia with military force in the past, and been sternly rebuked for it - then please at least listen to the Vetalian delegation, for the sake of those you rule."

"The minimum wage is four shekels an hour," said al-Omari. "Before the war, that would have been nearly eight U.S.D. Now I'm surprised if it's more than eighty cents, the Senate hasn't upped it to account for inflation yet. I personally am not thrilled with the idea of being a dumping ground for cheap labour."

The M.F.A. was still talking to Ambassador Gealach. "I'm going to work out during lunch break. Mostly running around the camp and lifting heavy rocks, we don't even have a good gym in these parts, and my butt is too big." She was certainly full-figured, but not fat by any stretch of the imagination.

Ambassador Gealach seemed a bit put off by this, but rallied valiantly. "Maybe you show me around, so I know how best to help your wonderful nation?"
He leaned towards her with a slight smile on his face, awaiting her reply to his proposal.

The Empire of Kontor will gladly send aid. However in doing so we would like to request the right to mine raw materials on your island.

1. The Government of Kahanistan needs to reform its foreign policy in such a way as to prevent such disastrous invasions in the future.
Isolation.


2. Failing that, a way is needed to form allies who will not run at the first sign of what is commonly called a "dogpile."

Do not depend upon others, depend on yourselves.

3. A clear economic policy for Kahanistan is needed that will improve the economy to pre-war levels without aggravating the already severe poverty that has accompanied the destruction of most of the nation's infrastructure.

Give out government funded jobs, pick up workers off the street and start building your infrastructure with them. Don't ask for loans and trained men from other countries, use the resources at hand.
4. Military industry is needed to provide for the national defence and defence of interests abroad.

Recall. It is not a true necessity for your men to be abroad. Causes logistical issues and others like it.

5. Foreign policy needs to shift away from our current practices of denying embassies to states we consider hostile - it hampers discussion of critical issues and allows them to fester into war.

Isolate yourselves, there would be no justified means to send an army against you, and if you truly Isolate yourself the attacker's alliance can not, as by the majority of alliances do, support them as it would be for no just cause.

6. After the main issues have been resolved, the floor will open to allow other issues not previously considered to be discussed if considered germane to the state of the Republic.
Is this really even a question?

This was the short response personally written by the Grand Marshall of the Status Quo of Terre Nationale.

This was the short response personally written by the Grand Marshall of the Status Quo of Terre Nationale.

1. No.
2. We do not "depend" on anyone. Of course, no nation is self-sufficient, especially when invaded by a coalition that outnumbers it some 6 to 1.
3. We do this, but we have lost many trained men and women. Education is at a premium here.
4. And abandon foreign interests?
5. We were diplomatically isolated during the last war, in which 250 million people died.
6. No.