NationStates Jolt Archive

30 January 2008

Special Economic Zone of New Masada, Kahanistan

4 PM

A young man walked through the streets to his part-time factory job at the Praetonian-owned textile factory where he worked after classes at the University of New Masada, where he was a junior majoring in political science. Jonathan Dixon, 19, encountered a girl on the way he remembered seeing in his Political Science 323, Theory of Imperialism 1 class. He recognised her as the short, opinionated red-haired girl who constantly talked about how the Praetonians were the same as the Doomani and the Questarians, and was an avowed member of the Communist Student Union.

"Doreen..." said Jonathan as he spotted her. "What brings you here?" Doreen Orwitz stood next to a large factory handing out leaflets for the Communist Party of Kahanistan. She handed one to Jonathan.

"I should have known," said Jonathan, reading the leaflet, which detailed how Kahanistanian cheap labour was being exploited to make goods cheaper than the Kahanistanians could make them themselves, and advocating strikes for higher wages, which would not only increase the costs of production but hamper productivity of the factories, and boycotts of the businesses to make exploiting worker labour even less profitable. Within a year, the leaflet said, Praetonian and other businesses would be driven out of Kahanistan with nary a shot being fired, nor a violation of the "Unequal Treaty (http://en.wikipedia.org/wiki/Unequal_Treaties)" of Haversham being committed by the Kahanistanian government or military.

Jonathan was not as enthusiastic as Doreen was. True, he was paid about a third of what he had been paid before the Doomani had invaded, but he made enough to have a better car than most Kahanistanians; he drove an imported Lexus hybrid. He read the leaflet and stuffed it unceremoniously into his pocket as he walked toward the factory.

When he arrived at the factory, his foreman, Mr. Dev Bhima Maheshwara, spotted the leaflet sticking out. "They got you, too?" asked the foreman, a man in his late 30's of South Asian extraction. "I got a poster in my office calling Kahanistan the Praetonian Raj and the S.E.Z. the Dishonourable East Kahanistan Company." He smiled. "Just blew up a leaflet to poster size."

"Yes, the Communists are very active. I got this from a girl in class who's handing them out in the S.E.Z," said Jonathan. "Not just communists, either. Nationalists, too. They don't want us being run by foreign countries."

"I don't blame them," said the foreman. "If it weren't for free public education, I wouldn't be able to have my kids educated. If the Praetonians expand their influence over the Raj... I mean, the Republic," he said chuckling, "they'll take over the schools, the health care, we won't have access to basic necessities. Now, I'm not advocating the abolition of foreign trade, God forbid. Only the most extreme Nationalists and Jucheists do. But when our economy is majority owned by foreign corporations, how much of the economy is really 'our' economy?"

---

7 PM

Jonathan and Dev got off work. While Jonathan usually walked from campus to work, he generally rode the bus home from work. They climbed aboard the bus only to find the main road out of the SEZ blocked by demonstrators waving signs and posters of Gandhi, who according to a leaflet laying on the floor of the bus, had been assassinated sixty years to the day earlier. Maybe this day accounts for the... Indian... character of the demonstrations. The signs had slogans such as "Stop Buying Questarian Terrorist Products!" "Minimum Wage!" and calling on the Kahanistanian government to "withdraw from the 'Sham Treaty!" A huge sign reading, "जप हनद!" in big bold letters on the top, and "Jai Hind" in smaller letters on the bottom, carried by a demonstrator, said literally "Victory to India" to anyone who could read Devanagari, but carried a more subtle meaning - comparing the occupiers to people widely seen as oppressors without being as inflammatory as calling them Nazis, thereby risking offending the Jews who formed roughly 25% of Kahanistan's population. After all, the Praetonians weren't putting people in death camps - but who knew what they would do if their business was threatened?

---

10 PM

The demonstrators, numbering some 10,000 students, disgruntled workers, and unemployed people, continued their protest well into the night. Kahanistanian police, not wishing to turn the protests violent, managed to secure a road out of the S.E.Z. to allow workers to return home, and did what they could to protect them from corporate security forces, but were ordered not to initiate use of force. The last thing they needed was film of Kahanistanian police officers firing on corporate guards, or God forbid, demonstrators.

The workers filed through slowly and arduously, the police taking until past midnight to get all the thousands of workers out of the zones. The demonstrators were not violent at this point, so the police saw no threat that would justify the use of force.

Liberty Times' blog page

The Kahanistani continue to rally against the Praetonians who, despite bringing economic freedom to at least some of the Kahanistani, have injured what has been often described as the national honor of the long-suffering nation.

Five hundred monks of the Biphysicianist faith have started a hunger strike, camping out in front of the Kahanistani embassy in Allanea. To them, it seems, economic freedom is more important than national honor. We at the Times believe the Kahanistani will not pay their protest any attention.

It's interesting that, even as this all unfold, the Demented Schooling Corporation has started opening chains of private schools in Kahanistan to compete with public education. As usual, 10% of the children, the poorest ones, study for free – but it does not seem clear how this will take up.

No Allanean officials have been available for comment thus far.

The monks nodded in agreement, and then the man who looked their senior explained. "Consider this a form of counter-protest. Many people believe that those who support capitalism are merely those who have an interest in it – the wealthy and the corrupt. We in our order are neither, and surely nobody would call a two-week hunger strike based on mere selfishness. We seek to bring to our fellow men the understanding and love of their peers."

* * *

If there was something that could honestly shock Allanean schoolmasters, the lack of clothing standards was not it. In fact, DSC did not enforce dress codes if the market (for example, a Christian school or a traditional area where a school could be situated) did not call for it.

And so the schools went on, working as normal.

Kahanistan's Deputy Ambassador in Allanea, on break from helping to load the new staff's possessions into the embassy complex, stepped out to greet the monks. He was a skinny, submissive-looking guy with a meek expression and looked to be in his late 20's or early 30's, dressed casually in a collared shirt and slacks.

"I'm Deputy Ambassador Christopher Schwartz," he said to the monks. "Why are you staging a hunger strike? The actions are not those of our government, but by communist agitators."

---

As education was free in Kahanistan anyway, teachers being paid by the government, only those who had problems with the educational system would sign up for the Demented schools, but even so, over 100,000 children enrolled in the first week.

Many parents expressed desire for their children to not be raised as Communists by the Education Ministry. Others wanted a traditional religious education not available in state schools. Yet more disagreed with the lax policies of Kahanistanian schools, which often lacked even the most basic of dress codes - thirteen-year-old girls wearing halter tops, thongs, short skirts, etc., and boys the same age wearing open muscle shirts with Jesus-shaped turds on them were common.

Not the corrupt... the brainwashed. The Deputy Ambassador did not wish to insult the demonstrators, but he saw little he could say. He thought for a few minutes.

"What is the ideology of your organisation? I cannot say it is well known in Kahanistan, but we do pay attention to the concerns of others."

SEZ Protests
New Masada

The officers of the Confederation of Praetonian Industry Kahanistan Security Force reacted with initial confusion that the Kahanistani police believed they would attack the demonstrators, but it seemed that the domestic forces were, in fact, reasonably co-operative. The Praetonian force, no longer carrying rifles as they were used to in their more usual work of keeping Kahanistani gangsters out of the Special Economic Zones, were armed only with shields and batons, the latter kept inoffensively attached to their belts except when under immediate attack.

As the protestors gathered, the Security Force formed up with locked shields along the sides of the road, pushing the protestors back onto the pavements and off SEZ private property. Their only objective was to prevent arson and looting, and keep the roadways clear. As such, their principal weapons were not guns and tear gas, or even batons and shields. They arrived on trucks mid-afternoon - hundreds of concrete barricades, produced at a competitive price by Kahanistanis in a Praetonian-owned Portland Cement plc. factory just a half mile away, laid by cranes along the side of the road and stacked 5 metres high.

By the time the protestors began to disperse later that night, barricades had been laid down all the way to the junctions, at which point the roads leading to the special economic zones split up to the extent that blocking each of them would on a day-to-day basis would be incredibly difficult.

Praeto-Kahanistani Society Guildhall
New Masada

As with most countries with which Praetonia had major ties, there was a Praeto-Kahanistani Society operating in Kahanistan already. It had been a low-key organisation. Until the day of the protests, it had primarily focused in finding and organising those people in Kahanistan who were already pro-Praetonian, or else who wanted to see their country revitalised along Praetonian lines, as a free market liberal country.

Such people were far from the norm in Kahanistan, where the last election had been bitterly fought between two equally collectivist, equally protectionist parties. With the rise of the SEZs, however, and the growing resentment being whipped up by communist agitators and disgruntled students, it was clear that there was a need for a counterbalance to this sentiment if Praetonian influence in Kahanistan was to have a long-term future.

The Guildhall, a huge, domed theatre in the grand neo-classical Praetonian High Commission in the centre of New Masda, was packed to the rafters. Society members filled the front stalls, with other Praetonian and Kahanistani dignitaries who had accepted their invitations (one was issued to the President, the leader of the opposition, and every member of both houses of parliament) seated above in the grand boxes. The High Commissioner and her husband, representing the Crown, occupied the Royal Box.

The rest of the building, which included the vast majority of the seats, were filled with Kahanistanis, from curious independents to overt communist agitators complete with banners. While obvious troublemakers were turned away, anyone who was willing to sit and listen with reasonably low levels of heckling was allowed to stay. Television cameras were trained on the stage, with a live feed being sent to every Kahanistani television and radio station, as well as the Praetonian and foreign channels operating in the country

They were here to see Sir Thomas Redbridge, the acting Prime Minister of Praetonia, and arguably a more important man in Kahanistani politics than their own elected President, who stepped onto the stage to a mixed barrage of applause and boos.

"There has been growing consternation, in Praetonia and in Kahanistan, about the growing influence of the Crown in this country. There are many here, and I am sure many of you listening to me now, who believe that King George is not your Protector, but your enslaver; that Praetonia is not, as it would wish to be seen, and as it appears to believe itself to be, a beneficent and admired power that is spreading freedom across the globe, but a force of coercion and tyranny.

"I do not begrudge such views. Kahanistan is a proud and ancient nation, which sees itself as a people who are due a certain dignity befitting such a nation, and should even hold power and influence of their own. I am sure that for many of you, particularly the nationalists, Kahanistan's defeats at the hands of the Automagfreeks, the Doomani and even the Crown's own close friend and ally, the Questerians, have been humiliating as well as materially destructive.

"If it were Kingston that lay in ruins, and King George a captive of a foreign and barbarous power, there would be many in Praetonia who would share the views of your nationalists. And yet, the Crown Commonwealth has ruined itself in the past in its civil wars, and was quite prepared to face the ultimate likelihood of partial or complete destruction in overcoming the Gholgoth powers during the 4 Day War. Why, then has Praetonia not cast aside its affinity for free trade, and individual liberty in general, for the sake of nationalism or communism, the two great forces that, although today they battle over Kahanistan's future, offer very similar views of what progress may entail?

"There are two principle objections in Kahanistan today that are raised in opposition to individual liberty - first, that it will result in the impoverishment Kahanistani citizenry and second, that that exploiters will be foreign. I will address these concerns together, for they are really the same concern, though they are emblazoned in Kahanistan on the opposing banners of the nationalists and the communists.

"The belief that laissez faire and free markets result in poverty for the majority is common, and yet it is almost always brought to bear against rich countries in which few people live lives of poverty. This has given rise to the idea that the rich in the free world are rich only at the expense of those in the countries in which they invest - that the capitalist nations will inevitably and necessarily be rich because they exploit the poverty of the socialist nations. This is the basic objection of both of the communists and the nationalists - the communists that they do not wish to be exploited, the nationalists that they do not wish foreigners to exploit. There is absolutely no validity to this view.

"Take, for instance, Clandonia. This is a country that was afflicted by precisely the same circumstances as Kahanistan - destroyed and driven from its homeland, those patriotic Clandonians who chose to leave and found their country anew had nothing with which to develop their condition from a state of absolute poverty save their own ingenuity and labour. Clandonia, too, entered the Praetonian sphere of influence, in the early days of King George IV's reign. Today, Clandonia is not just a prosperous and well-defended nation, but a power of growing prominence, that is now itself contributing to the development of Kahanistan, and to its defence.

"The difference between Clandonia and Kahanistan is that Clandonia accepted and embraced Praetonian investment and the laissez faire as a means of restoring both its prosperity and its national pride. The nationalists in Kahanistan today decry the fact that only foreigners are able to construct viable industry in Kahanistan. They believe, further, that this is not necessarily what has to be, but that it is instead an artificial condition imposed by the special economic zones. They are wrong.

"The circumstances into which Kahanistan has been forced by war mean its people have nothing with which to build industrial capital for themselves. They can trade for it, but foreigners will not sacrifice their own livelihoods for those of others, and so they demand value for value, and insist that they own what they provide - industrial capital, or factories - leaving the Kahanistanis to own what they provide, that being labour. The nationalists claim that this is only the case because trade is allowed - because, they argue, if foreign investment was prevented and Kahanistanis banned from purchasing goods manufactured abroad, the sum total of Kahanistani capital would have to be directed away from whatever else it was doing - something presumably more profitable in the free market - into the construction of home industry. This would then produce goods that, although overprices, the Kahanistani public, banned from purchasing from abroad, would have no choice but to buy.

"This argument is a chimera. Although it is true that this would result in the development of Kahanistani-owned industry, it does this only by forcing the greater majority to subsidise it. What does this represent, in practise, except a conspiracy against the public? How is it in the best interests of the average impoverished Kahanistani to have to pay twice as much for consumer goods so that the profit may go to a Kahanistani rather than a Praetonian or Kregeian? Does the economy exist to provide Kahanistani industrialists with business interests, or to provide Kahanistani people with goods? I believe the latter.

"The Communists, on the other hand, claim that laissez-faire does not provide people with goods - that it instead drives their salaries down so low that they can no longer afford to purchase the plethora of goods produced in the industrialists' factories. If this is true, one might well ask how the industrialist intends to make any profit at all by producing goods that no one can afford. In fact, salaries in Praetonia and Clandonia, countries far more laissez-faire than Kahanistan, are not low at all. This is because businesses in those must compete for workers, there being more oppurtunities for employment than there are employees. In Kahanistan, this is impossible, because the communists have made much of the country artificially impossible to invest in. This leaves huge unemployment, and companies do not need to compete for employees - quite the contrary.

"If you want to know why so many people are starving, or denied good education, or adequate healthcare, you may look no further than the communist party and the influence it has spread. People who work for SEZ companies do not live in such conditions. In Kahanistan proper, the de-facto bans on inward investment, combined with the fact that there is little native capital that in any case people would not want to invest there, means that there is neither adequate employment for people to be able to support themselves, nor sufficient tax income for the government to support them - there is only such much money, more is not being produced, and so the only route in is from the outside.

"You might well despair, then, because it seems there is no solution to Kahanistan's problems that will leave Kahanistan independent - the country can either remain impoverished, or supplicant itself completely to the Praetonian Crown. In fact, this is untrue. To return, if I may, to the example of Clandonia, while in the early days it was true that the Clandonian economy was owned almost entirely by Praetonian banks and private investors, this is not the case now. You might well ask why. Ironically, it was the result of Praetonian investment. A Clandonia in which everyone was receiving a salary meant that there was more money available to invest by Clandonians in Clandonia and abroad. A Clandonia in which there was a developed - Praetonian - banking system meant a Clandonia where Clandonian entrepreneurs could take out loans to spend on new Clandonian businesses.

"I have presented to you, then, a brief outline - for there are many at the High Commission who would talk to you for years on end on this topic, and who have dedicated their lives to its study - of a new path - and I believe the only path - that Kahanistan can follow, and which a number of rich and powerful nations will help it follow, that will allow it to regain the successes of its past. King George has no desire to impose laissez faire on Kahanistan any further than is required to defend the property of the Crown's subjects in accordance with existing agreements. It would be too difficult and expensive to do so in any case.

"But I hope you see now that our interest in your country is not merely selfish, although Praetonian subjects surely shall benefit too, but a campaign to improve the state of Kahanistan, and raise it up to its previous status as a dignified and prosperous nation. I hope that some of you here today will join us, and help break the grip of nationalist-communist collectivism on Kahanistani politics with a new Liberal Party, with the Praetannic family alongside as allies, not adversaries."

[OOC: I didn't write in any audience reaction during this because I didn't know what Kstan wanted them to do. Banner waving, some booing/applause and light heckling will be allowed, but behaviour that disrupts the speech will result in people being removed by the High Commission security.]

The President sat in the audience, taking notes. When the Prime Minister finished his tirade and the bulk of the people applauded (this was a pro-Praetonian gathering, after all), she assembled her notes and spoke at the University of New Masada the next day, having made sure the PM's speech was distributed.

"The Clandonians... do not have an entrenched history of socialism, as we do," she said. "In a socialist economy, the average citizen would not have to pay twice as much for domestic products, not if the government subsidises vital industries, as it did prior to these wars."

"Why does Praetonia, an ally of the Questarian Commonwealth which has made itself our enemy, now invest here, and claim to be interested in our survival? What besides cheap labour does Praetonia gain by sitting here, pushing its businesses into our nation, often over the objections of our own politicians and industrialists?"

"I have no objection to trade, with Praetonia or anyone else. But, we will always remain, if the nationalists in the audience will excuse me, a third-world nation, if our people remain little more than sources of cheap labour. Yes, Clandonia was able to become powerful with a brief period of Praetonian exploitation. They have embraced capitalism whole-heartedly, and now are fervent allies of the Questarian Commonwealth and Doomingsland."

"I am not saying that the same will happen to us. I am saying that with Praetonian control of our economy, if it is allowed to become complete, they will be able to hold our economy hostage. Politicians may be forced to choose between having an economy and keeping socialism. We already have a lot of restrictions on our independence."

"Given our situation, I am willing to encourage a diversity of investments - from numerous nations, obviously with a preference toward other socialist states, such as Wagdog or the World Soviet Party. I will do everything in my power to help the exploited people here, and have been working with the Senate to encourage refugees from totalitarian states to come here, and other desperate individuals for whom life in Kahanistan would be preferable to life under an iron jackboot or arbitrary execution."

Sklenova's education was mainly in the area of political science and philosophy; her economic education consisted of Marxist theory taken in her philosophy curriculum while she was an Academy cadet. She would not be fully educated on economics - but there were likely those in the Senate who were.

[OOC: Eh? This isnt some kind of debate, my PM just addressed the audience and then left. He's trying to build up pro-Praetonian sentiment, he obviously isnt going to let an anti-Praetonian he just spent half an hour bashing respond to what he said. That should be an article in a newspaper or something.]

Since the riots had begun that morning, the Inner Court had been in uproar. It was widely believed that this would grow and grow, leading to a full-blown popular movement aimed at eliminating the Praetonian investments. Ordinarily this would have been regarded as a problem for the Praetonian King and the Kahanistani President to work out on their own...but it was a dangerously short step from "Expel the Praetonians" to "Expel the foreigners". And so the Emperor had sent out Abram Vidann, the wily Minister of Foreign Affairs, to remind the Kahanistani exactly how much they needed foreign investment, and to request that the government keep the rioters under control. This entire issue needed to be fought out (verbally, of course), and so Minister Vidann sent an invitation to President Sklenova and Sir Thomas Redbridge to attend an informal conference at the Kregaian Embassy in New Masada regarding the overall economic situation in Kahanistan.

OFFICIAL DIPLOMATIC COMMUNIQUE

To: Sir Thomas Redbridge, Acting Prime Minister of Praetonia, and President Nadia Sklenova of Kahanistan

It is the opinion of the Imperium that Kahanistan is currently falling victim to trends of public opinion that, if not resolved one way or the other, will tear the country apart. The conflict between the Kahanistani people and the Praetonian investors must be resolved, and thus the Imperium offers to host a conference at the Kregaian Embassy in New Masada, at the convenience of your graces, at which we, without publicity and with honesty, can determine a way to reconcile the aforementioned conflict. We await your replies.

Signed,
Abram Vidann, Minister of Foreign Affairs
http://i171.photobucket.com/albums/u308/TataliaLW/AV.png

OOC: As everyone always says, don't bother RPing showing up if you accept. Just post some little blurb about your representative sitting in a conference room.

[OOC: Assuming you're referring to the President of Kahanistan, I'd have to say you're wrong on that. Either way, the crowd can still applaud him before he leaves, and / or heckle him, and respond to the President when she speaks.]Society members filled the front stalls, with other Praetonian and Kahanistani dignitaries who had accepted their invitations (one was issued to the President, the leader of the opposition, and every member of both houses of parliament) seated above in the grand boxes.

The protests were not aimed so much at "kicking out the investors" as they were at securing economic independence and weakening the hostile Praetonian stranglehold (well, perceived as hostile anyway) over a period of months.

The next week, Communist Party agitators slipped around the S.E.Z.'s, intent on posting leaflets targeting only Praetonian businesses. These leaflets contained the same general viewpoints as the protestors had earlier, detailing the strategy to encourage walkouts, boycotts, strikes, and other economic sabotage against the Praetonians, as the earlier leaflets had.

They tended to strike at night, dressed in black to blend in, and drove non-Praetonian made cars when a vehicle was needed, such as for getaways or when moving activists in from other cities. Kahanistanian police made no efforts to stop them - to them, it was a matter of free expression and protest.

---

Sklenova was more than willing to accept. She directed Foreign Minister Dragomir Karovic to go to the conference to meet the Kregaians. Within hours, the M.F.A. was at the conference room.

[OOC: That's what I'm saying, the President didn't get to speak. She was invited to sit in the audience and listen to the speech, not to participate in some kind of debate.]

Most Praetonian businesses threw away the leaflets that were posted to them, for some reason in the middle of the night, by Kahanistani anti-Praetonian movements. None of them were quite sure why they were targeted, rather than Kahanistanis. Workers who striked and refused to come back to work were fired for breach of contract, but for the most part the Kahanistanis needed their jobs, and SEZ employees were better paid than Kahanistanis in the rest of the country in any case. With the businesses providing free private healthcare and education at Praetonian standards in the SEZs themselves, drastically reducing tax and operating costs, the actual employees were much less likely to be anti-Praetonian than the communist students who lived at the state's expense.

Increasingly, SEZ companies were giving their employees residency in tower blocs into the SEZs too, allowing them to avoid the pickets of communist students and disguntled older workers, as well as meaning they did not have to pay any of their income in tax. Meanwhile, the Praeto-Kahanistani society began a major publicity campaign, distributing the Prime Minister's speech and large numbers of free copies of The Road to Serfdom (http://en.wikipedia.org/wiki/The_Road_to_Serfdom) to Kahanistani households. Posters were put up all over Kahanistan openly in the middle of the day, with slogans like The solution to unemployment is an SEZ in every town.

OOC: I'll assume Praetonia sent his Foreign Minister.

IC: The room was elegant and richly, but not lavishly, decorated, and more comfortable than many others of its kind. Few conference rooms featured expertly-made leather-upholstered chairs, with a sizable oak table at the center. At two intervals along the conference table, there was a box of cigars and a silver tray with a small variety of glassware and a bottle of vodka, cognac, and whiskey.

At the head of the table sat Foreign Minister Vidann, with the Praetonian Foreign Minister on his right and Minister Dragomir Karovic on his left. A few aides stood silently around the table, clutching document cases or other materials, waiting to be summoned. Having retrieved a Montecristo for himself, cut and lit it, and taken a drag, Minister Vidann stated, "Gentlemen, the Imperium has asked you here today so that the three of us, representing the major political interests in Kahanistan, might once and for all settle the burgeoning issues here. These range from disputes over workers' rights to claims of Praetonian imperialism to the fundamental question of how best to restore Kahanistan's economy. It is our hope that these issues can, and will, be resolved today. Let us first turn, please, to the question of workers' rights. Minister Karovic, would you care to present the opinion of the Kahanistani people and government? Please bear in mind, sir, that full honesty and openness is required here today."

There were, of course, those who would prefer to work with a non-Praetonian company, those who had no objection to the S.E.Z. concept but felt the claims against Praetonia had some merit. These were a minority. Most were not willing to accept unemployment, even temporarily as they looked for another company, as the price of taking a political stand, and many were simply too full of bread and circuses to give a hoot as long as their bellies were full. Wage slavery alone will not promote slave revolts unless the slave driver is sufficiently brutal.

The communists were not yet willing to resort to illegal activities, and now were often unable to reach the workers on their way to work, with them living in compounds within the zones. They resorted to bringing in larger numbers of non-communist members whose motivations often had to do with economic nationalism or personal interest, and were often willing to buy "non-Praetonian." The economic nationalists, however, had a major disagreement with the communists - they wanted to import other non-Praetonian businesses to force them to compete against each other and increase wages. The communists, on the other hand, aimed to drive out the businesses and create their own worker-run industries, and saw the current crisis as an opportunity.

---

Karovic waved his hand in front of his nose. The smell of the cigar was horrible. "We believe that with the current economic situation, the businesses can do pretty much what they want to our workers. Businesses won't negotiate with unions, and that's if they don't fire union members outright. We see our workers as being treated inferior to Praetonian workers, we question why Praetonia, which is after all allied to many of our worst enemies, is suited to act as our 'protector' - what will they do if we are attacked by a nation with which they have a treaty, or with which they are allied? - and we are, quite frankly, displeased with the sheer volume of Praetonian business here compared to that of other nationalities."

SNMC Internal Report (extract)
From: Director of Operations, Kahanistani Re-Distribution and Processing Node, Kahanistan
To: Director of International Operations, Corporate, Takuliyet

... but no SNMC installations have been targeted by this unrest; attributable, no doubt, to the Standing Directive to conform with local labour standards, and the swift actions of the local police forces, who have kept the demonstrations in line. Indeed, there has been negligible disruption to any of our operations or connected activities.

We remain confident of meeting production and redistribution quotas for this octile, and confirm the previous report's recommendation against expanding our operations at this present time.

No expansion is necessary.

*******

MEA Internal Cable (extract)
From: Ambassador deMalara
To: Ambassador-General Alarl

... of course, madam Ambassador-General, we shall keep a close eye, and inform the Tourism Secretariat of any undue developments. As yet, however, no such developments have taken place and we have had no reports of our citizens or interests being targeted in the least.

The Embassy Archdeacon reports that there is only a minor Church presence in Kahanistan; as the Holy Synod does not consider this nation a priority, or a suitable candidate for missionary activity, this is not a surprise...

... there has been, as yet, no significant reaction to the address by the Praetonian dignitary. This address has, however, served to reinforce the prevalent view of that nation.

Karovic waved his hand in front of his nose. The smell of the cigar was horrible. "We believe that with the current economic situation, the businesses can do pretty much what they want to our workers. Businesses won't negotiate with unions, and that's if they don't fire union members outright. We see our workers as being treated inferior to Praetonian workers, we question why Praetonia, which is after all allied to many of our worst enemies, is suited to act as our 'protector' - what will they do if we are attacked by a nation with which they have a treaty, or with which they are allied? - and we are, quite frankly, displeased with the sheer volume of Praetonian business here compared to that of other nationalities."

Vidann nodded, stroking his chin, and took another drag on the cigar before turning to the Praetonian. "Sir, would you care to respond to the Foreign Minister's statement?"

[OOC: Consider this a bump, given Praetonia hasn't responded in two weeks.]

The Foreign Minister shook his head irritably. "I do not oppose Praetonian business. You probably ask us, why are the people so mad at Praetonia, and to a lesser extent, Clandonia? Why not at Kregaia, or Vetalia, or the Western Atlantic states, or Axis Nova?"

Karovic clasped the side of his hand to his nose to shield himself somewhat from the fumes of the Kregaian's cigar. "The answer is that the Praetonians extorted a treaty at gunpoint that demands greater concessions, a treaty many of the people do not consider to be valid, and the Clandonians claim us to be one of their protectorates. We never signed any treaty with the Clandonians, but that doesn't matter."

"With the demonstrations, you probably are thinking we are all idealistic, and our history has borne that out. History has shown that after the defeat of Germany in the first World War, it too fell under the grip of a nationalist... and that had catastrophic results. We, too, have suffered tremendous defeats... and they have incited patriotic feelings among many people. Some will want nothing less than the complete removal of Praetonian interests. I hope we can come to an agreement that most people will accept."

---

The student demonstration leaders, faced with the inability to reach the workers en route, had to devise a new plan - a way to counter the dangerous libertarian propaganda the Praetonians had sent to their doorsteps and no doubt were busily using for corrupting the minds of the S.E.Z. "cheap labour sheeple."

A "cover" was made for use on demonstration signs and billboards, featuring a road on which was written "The Road to Serfdom." On either side of the roads were "serfs" dressed in Kahanistanian clothing labouring to construct S.E.Z.'s, and in the distance lay a Praetonian-style palace, with the flag of the Crown Commonwealth above that of the Free Republic in a true desecration of the Republic's flag. Smaller versions were posted on the walls of buildings, the activists being the bravest of the bunch, knowing that they might face assault by corporate security if it proved effective...

Surrounding the largest Praetonian company in New Masada, a hundred mostly college-aged young men and women clasped hands and sang.

"Rue, Praetonia! People need a living wage!
Our people never, never will be slaves!"

Clandonian Special Economic Zone, New Masada

Clandonian workers in the economic zone had been confused by the protesters, apart from causing traffic jams in the morning they had done barely anything to obstruct Clandonian business in the area. For the Kahanistanis that were late for work due to the road blocks then they would suffer by missing the wages that they had been entitled due to serial time keeping offences. Clandonian managers wondered in confusion what was wrong with these people, what was the point of aid and development when the ideology of the population was against liberty, freedom, laissez faire and development? Many wondered about why Kahanistani's had confused neo-liberal reading with some sort of manual for creating slavery.

Clandonian private security forces stood outside factories and patrolled with members of the Royal Army Kahanistan Task Force. Bayonets were fixed and troops had rubber bullets instead of the usual live ammunition. Tear gas grenades had been flown in by the ton load to RAF Hereford in the north of the country encase there were large scale riots that threatened Clandonian assets in the SEZ's.

[OOC: Sorry, I've been a little busy and kind of forgot about this. Is there any chance you can get on MSN at some point, Kstan?]

The Secretary of State for Foreign Affairs, a Mr Henry Redgrave, like most Praetonian gentlemen, enjoyed cigars and helped himself to one of the fine selection the Kregeians had arranged. He smoked and listened to the Kahanistani. The cigar had burnt down almost to the end when he decided finally to have his say.

"Mr Karovic, I understand your concerns. I realise that in an intensely nationalistic culture, as Kahanistan is more than ever following its military defeats, rationality does not always remain at the heart of political discourse. I must reject most strongly the insinuation that the Crown Commonwealth has acted to extort to intimidate. Kahanistan agreed, of its own accord, and before Praetonia had any military or economic interest in the country, to set aside certain areas for free trade and investment. Praetonian companies, both mindful of their own best interests and possessing a certain charitable spirit, took up this offer with immediacy and achieved a great deal. Today, hundreds of thousands, perhaps millions, of Kahanistanis are directly employed as a result of Praetonian capital.

"And yet recently you held an election in which both parties promsied to undo this, to pull the rug from under the shareholders - ordinary Praetonians all, just like your own citizenry - and even "nationalise," the prettiest euphamism for theft I have ever encountered, the means of production built with funds they have industriously produced in Praetonia and abroad. It was not an act of extortion or intimidation to ensure that Kahanistan abided by the agreements into which she freely entered, or to take steps to ensure that she would not attempt to withdraw again in future.

"Indeed, the Lord Protector has no ambitions to meddle in Kahanistan's daily affairs, to appoint Mahrajahs, or to aggrandise himself Emperor of Kahanistan, as some in your country suggest. He is mindful of the welfare of your citizenry. It is plain, however, that this cannot be served by communism, as you would propose. Whatever you think of the treaty arrangements in force to protect them, or the rate at which they pay workers, it is undeniable that Kahanistan would be materially much poorer without foreign businesses, and in a country with a GDP per capita that would be considered below the poverty line of a rich and prosperous country like Praetonia or Clandonia, that is not something that can be taken lightly.

"Kahanistanis are right, however, to say that the blessings of foreign investment are inequitably divided, denied completely to many, and far and a way less than they are in free trade countries like Praetonia. This is the result of the SEZ system - oppurtunities are limited by geography to those who live near them, or have the means to move closer, and the physical limits on the number of people who can be employed mean that it is very much a buyer's market for labour - businesses can offer a lot less than they can in Praetonia. The ideal solution, as the Prime Minister has elaborated and a small but growing number of Kahanistanis embrace, is wider liberalisation to make the whole an 'SEZ'. But I understand that most would reject that, not feeling able to trust that wages would rise as a result, and I am not naive like many of my countrymen to think that this will change in time period measured in anything less than decades.

"The problem, as I see it, is that Kahanistan is worried that further liberalisation would result in greater poverty, and reductions in government revenue would mean the Kahanistan welfare programmes would be unable to foot the bill. I have discussed this matter with representatives of the Confederation of Praetonian Industry's Kahanistan Group, and I believe that we have reached a solution that will enable both the long-term growth of Kahanistan, and the expansion of foreign investment to provide jobs for all.

"In essense, we propose to have the CPI fund and guarantee a welfare programme that will ensure food, water, healthcare, education and housing is provided to those Kahanistanis who cannot afford it themselves. This will last for twenty years, during which time the Kahanistani government's burden of taxation will be limited to no more than 8% of GDP - more than enough to cover defence spending and ensuring law and order - and labour regulations must be repealed. In this manner, foreign investment is freed to grow the economy, meanwhile the Kahanistani people are ensured an acceptable standard of living, and the CPI's bills grow in proportion to how many are unemployed and shrink in proportion to how many are employed.

"After twenty years, it is to be expected that Kahanistan will be a reasonably wealthy country, whose government will be able to reassume the burden of providing welfare, if it is still the populace's desire to have welfare managed by the state, without fatally endangering the country's economic well-being, or driving off foreign investment. As the cost of this programme would be borne entirely by the CPI, it would be limited to CPI businesses at first, but it could be expanded indefinitely to include businesses or groups of businesses willing to 'buy in' for an equal share of the cost."

Mr Redgrave lit another cigar, hoping that he had just changed the hostile relationship between Praetonia and Kahanistan forever.

------------------------------

Where they blocked the entrances to businesses or intimidated legitimate employees, security personnel in riot gear moved protests away, but for the most part they were allowed to shout and wave their banners all day. Meanwhile, all across Praetonia, billboards went up paid for by the CPI showing the lifestyle of an SEZ worker on the one hand - with the company-owned employee-only private hospitals, schools and housing in the SEZs providing a backdrop to smiling workers - and the average Kahanistani lifestyle outside - poverty and unemployment, with crumbling government-provided hospitals in the background, reading "This is serfdom".

Minister Vidann nodded slowly and politely held up a hand before the Kahanistani Foreign Minister could reply. "It seems to me, gentlemen, that Foreign Minister Karovic has himself provided the means to resolve this. Considering his first statement, I present the following analysis of the Kahanistani viewpoint. Kahanistan is worried about the use of labor by the Praetonians: specifically, that the lack of effective unions exposes your workers to exploitation by their Praetonian employers. Kahanistan is also concerned about the diplomatic situation: Praetonia is allied to several of Kahanistan's enemies or potential enemies, and naturally Kahanistan wants some kind of guarantee that the Praetonians would not betray them in the event of a war. Finally, Kahanistan is worried that the Praetonians will use their status as protectors and as the major foreign employer in Kahanistan to strip away Kahanistani freedoms.

"To the first, I admit that I support the Praetonians here. True, Minister Karovic, your workers may at least initially suffer hardship...but then, 'hardship' is relative. To a Kregaian or a Praetonian, yes, the average Kahanistani working even in the SEZs is impoverished, but compared to those living outside the SEZ, such an average worker is very well-off indeed. Furthermore, the foreign investors here, no matter how well or poorly they may treat laborers, are vital to re-establishing Kahanistan's economy. With time and foreign capital, Kahanistan will become wealthy, and in the long run all of its citizens will prosper. Think of the hardships Kahanistan laborers endure as similar to the sacrifices made by soldiers. Although they are more secure financially than other Kahanistani workers, SEZ laborers are, on a world standard, poor, and yes, they are deprived of certain benefits that would raise the price of labor and make life better for them. But by enduring these conditions, they ensure that in time, Kahanistan will be a much better place for everyone.

"Diplomatically, the Imperium can hardly pretend any right to intervene in the relationship between Praetonia, its allies, and Kahanistan, and so my words have limited weight. However, I would argue that the presence of Praetonian investors here means that it would not be in Praetonian interests to allow a destructive war; they would lose a great deal of money. Since one could argue that supporting one's allies is an incentive strong enough to outweigh the loss of that money, the best way, in fact, to ensure Praetonian protection of Kahanistan is to accept as much of their capital as they can offer. Not only will this boost the Kahanistani economy quicker and render them able to defend themselves sooner, in the meantime it will . I apologize, Secretary Redgrave; I am approaching this particular issue from a realpolitik standpoint, in the interests of Kahanistan, and I am not implying that Praetonia will betray Kahanistan. At any rate, Minister Karovic, this offers your government a way to reconcile the idealism of your citizens with the necessity of foreign investment: the greater the investment, the more secure Kahanistan becomes.

"To the last issue, I must say that there is little concrete we can do to allay the fears of the Kahanistani people. If they are afraid of Praetonia, only experience with them will disprove that they should be. However, again approaching from a realpolitik standpoint, I believe that stripping away Kahanistani freedoms would not be in the Praetonian government's interests. Look how close to rioting your population is already, with, if I may say so, provocation so scant as to be invisible. Pushing the envelope further by restricting Kahanistani legislation or garrisoning troops in Kahanistani cities would spark outright rebellion. Such a rebellion would have to be put down either by force or massive concessions, and either would be very expensive to the Praetonian government. I am confident the Praetonians realized this a long time ago, and that is why I trust them not to attempt to reduce Kahanistan to an impotent puppet. However, short of the Praetonian government making concessions to allay Kahanistani fears, which is of course up to them, there is little we can actually do about this. I doubt the entire population can be convinced that the last thing Praetonians would want is to provoke an uprising.

"Finally, Minister Karovic, you may notice that my opinions seem to be in line with that of the Praetonian government. This is because I, like the Praetonians, believe that increased foreign investment is a good thing and will make Kahanistan a far better place. Yes, the SEZ workers may suffer compared to workers in wealthier nations, but they are still far above those outside the SEZs, and their temporary sufferings ensure Kahanistan will rise again. Furthermore, if the Praetonian government acts to protect its own interests, that is, rationally, it can be relied upon to protect Kahanistan and to respect Kahanistani freedoms. With all due respect, Minister, you must admit that my statements are true. The question, now, is to convince the moderates among your people of that truth. You are the expert here on your own people, of course. How would you propose we can convince the populace to act rationally and in their own interest as opposed to angrily and radically?"

"So, gentlemen. Your thoughts?

SNMC issued a company directive forbidding the display or dissemination of either pro- or anti-Praetonian posters, billboards, leaflets, or other material on SNMC property.

If any appeared, the offending material was promptly confiscated or taken down, and destroyed. People who violated the directive were gently but firmly apprehended, told not to do it again, and booted off the premises. If they were SNMC employees, a mark was made in their permanent records (after the second infringement).

What the directors actually thought of either side in the dispute, they kept to themselves.

Drasgard Times

Jai Hind and Nazi menace on KahanistanArticle by: Juha Poro
As readers who follow international politics more closely have probably noticed, recently there have been heavy protests against Praetonia in Kahanistan. Those protestors used various sings like "Stop Buying Questarian Terrorist Products!" and "withdraw from the 'Sham Treaty!". More interestingingly, there was India theme, including Ghandi pictures. But I spotted also signs carrying "Jai Hind", literally "Victory to India" or "Long live India". If you asked about it from a Kahanistani, he would probably explain how Praetonia exploits them like Britain exploited India. And here his explanation would end.

Unfortunately real truth is deeper. “Jai Hind” was made really known by Subhas Chandra Bose. During the World War II Bose went to Nazi Germany and helped to organize Indian Legion which became part of infamous Waffen-SS. Later he helped to organize Indian National Army with Japanese support. Yes, those were the same Japanese who became famous for Rape of Najing and Bataan Death March. It is really disturbing that battlecry of nazi allies are carried by those “peace loving” Kahanistanis.

Of course this is not first time then Kahanistan shows fascist tendencies, during The Four Day War served Kahanistani carrier RKS Heinrich Himmler. No, I am not kidding, they actualy had capital ship named after the architect of the Holocaust. That war ended as complete defeat for Kahanistan, that lost its homeland. Many, I believe that even some Kahanistani politicians, have pointed out parallels between current Kahanistan and post World War I Germany. In both cases revancism and economical hardships created good environment for radical movements.

Other importnant part for rise of radicals is finding a scapegoat. In Germany these were Jews, the fact that Jews actualy had positive effect did not save them. In Kahanistan Praetonians have became a scapegoat, the fact that Praetonian investements have highly positive effect is again ignored. At some times it seems like Kahanistani politicians turn more attention into preparations for pushing Praetonians out, then rebuilding their poor and improvished homeland. Returning to “Jai Hind”, Bose’s allies Germany and Japan ended World War II in ruins, hopefully Kahanistanis will learn from history before they bring another tragedy on their nation.

[OOC: as usual, its no way connected to official view(which practically does not exist) of olmedreca government]

Official message from the United States of Allanea

We have always been good friends of the Kahanistani people – except for that tiny incident where they bombed their own capital city with fuel-air explosives and killed Allanean troops who were protecting them, that is. But it is because of our friendship with the Kahanistani people that we must, in this, support Praetonia.

If Kahanistan is ever to become free of its poverty, if Kahanistani men are to become something more than factory worker, if Kahanistani women are become something more than housemaids – or worse – to Praetonian masters, it is only through free markets, individual liberty, and peace- that these will be secured.

In Hebrew, the word for a businessman is yazam, he who has initiative. It is by releasing the initiative of businessmen all over Kahanistan that the nation will truly prosper.

To quote a famous Zionist economist, founder of the Shinui party and economic advisor to Binyamin Netanyahu himself, a certain Daniel Doron: "If you learn nothing else from me, learn this: freedom is a most powerful constructive force." Set people free, and they will revive the world. Set the Kahanistani free, and they will revive Kahanistan.

We are willing to say, however, that this situation concerns us greatly. At least one of our corporations – namely CBBC – will be moving security force detachments to protect its SEZ holdings, and the United States Navy will be moving in an aircraft carrier – the USS Pat Buchanan into a 500-kilometer range from Kahanistan.

May God bless Allanea.

Karovic frowned as he listened to the Clandonians, then the Praetonians, then the Kregaians speak their pieces. At a diplomatic summit, all had to be allowed to speak their minds, no matter how long it took.

"We would, of course, need a sunset, or exit clause, Mr. Redgrave... and if we are to repeal our labour regulations, if I am to get this through the Senate which is growing more nationalistic by the day, how we are to ensure even worker health and safety, to say nothing of a subsistence wage, how I am expected to accomplish this." The Minister himself was not a staunch communist, and had been appointed to his position based more on his willingness to take hard-line positions against terrorist states.

"Mr. Vidann, you ask my opinion here... I would say that Praetonian, or for that matter any other S.E.Z. holder, business should be no more than ten percent of the market, and we shouldn't be forced to submit our legislation to the King for approval. This gives Praetonia, an APOC state that has proven itself time and again to be more loyal to Doomingsland, our nation's mortal enemy, than to liberal nations like us, an astonishing amount of economic and military influence over our nation, and even many of those who would be pro-Praetonian are put off by the APOC angle. If Praetonia is but one of dozens of nations with interests here, and its sway is no greater than that of dozens of other nations, then the people may calm down and no longer fear usurpation, or exploitation, or annexation."

"Mr Karovic, the Lord Protector's subjects have just offered you a cash sum in excess of [sixteen trillion dollars], and yet you insist on piling demands on top of such kindness? Sir, it simply does not do to respond to such generosity with such ingratitude. No, there will be no negotiations on backtracking to the perilously unstable situation of a few months ago - there will be legal mechanisms in place to prevent Kahanistan from seizing foreign property or from engaging in damaging foreign wars. Doomingsland is not an issue. She is the Crown's ally, not its master - the Lord Protector would no more allow her Caesar to invade Kahanistan than to do the same to Kingston - nor, now that Kahanistan has been forced through poverty to withdraw form the cut and thrust of international power politics, are Doomingslands doings therefore of much significance to Kahanistan.

"Your worries about worker welfare are well-meant I am sure but utterly unfounded. The purpose of the CPI-provisioned welfare programme is to allow Kahanistanis to subsist even without a job, albeit not at a standard of living that would deter the majority from bothering to acquire one. If Kahanistanis find their work unsafe, or find no work at all, they will still be better off under this new arrangement than they are now, forced into poverty and supplicance to a state that has not the funds to provide for them.

"Sir, I have endeavoured in arranging this plan to tailor it towards acceptability by the Kahanistani populace. The provision of unearned and un-paid-for welfare will slow down the process of industrialisation but it is what you want so I have secured it. The blueprint is arranged to allow Kahanistan, at the end of 20 years, to reinstate its regulations and continue the CPI welfare programmes out of its own taxation revenues, which will also be allowed to rise as far as the Kahanistani government wishes outside of the SEZs - I believe this to be folly but it is the society you idolise so I have provisioned for it. Sir, I do not believe that the limits of reasonableness stretch much further than the generous offer I have presented to you today. I urge you to accept."

"We are not an aggressor state, and I resent your implication," said Karovic coldly. "We only fight to defend ourselves. What have we to gain from a destructive foreign war? It serves our interests no more than yours to take what little we have and convert it into missiles and weapons to kill people rather than feed our own."

The Foreign Minister slid off his loafer and slammed it onto the table. (http://www.grapids.lib.mi.us/wiki/images/thumb/b/b7/Khrushchev_shoe.jpg/280px-Khrushchev_shoe.jpg) "You think all nations are like yours, militant imperialists that want to impose their will through force of arms. We just want to be left alone, not dragged into foreign spheres of influence, especially those with which we are ideologically incompatible. The military bases (http://www.forums.jolt.co.uk/showpost.php?p=13338296&postcount=35) you already have here are sufficient to deter a military seizure of the S.E.Z.'s, we do not need the King's signature on our domestic legislation."

"The people of Kahanistan did not elect King George to decide our affairs. We elected our leader for that, not to serve as little more than a puppet Maharaja. I'm not even a communist, and I can see your imperialistic goals from here."

[OOC: Kstan, can you go on MSN right now?]

Redgrave laughed. The nationalist rage that seemed so easy to inflame in Kahanistanis was no doubt the reason they had managed to endure so long in spite of it all, but it was not a virtue in diplomacy, and he came to understand now why Kahanistan had acted so rashly as it had done in the past to draw itself under the gaze of aggressive foreign powers.

"Kahanistan could not be accused of imperialism, I grant you. But is it bellicose? Undeniably so. Her first major defeat, at the hands of Automagfreek - it is always amusing that your people ignore Praetonia's historic opposition to that particular country while they are so quick to highlight that it has supported Doomingsland against them - came about as a result of interventionist foreign policy, not - how did you put it? - 'wanting to be left alone'? You claim you have no desire to spend money on guns over butter, and yet only this year Kahanistan endeavoured to purchase an airforce numbering in the thousands, with upkeep costs exceeding the GDP of significant proportions of your country. Why, only this past month the Lord Protector was forced to veto a Kahanistani war against Pablicosta, and Kahanistan is in a far worse state to wage war now than it has ever been in the past. Your interventions are well intentioned, I agree, and perhaps in the future the Crown Commonwealth will even support you in them - but it requires a certain tact to know when and how to act that Kahanistan historically lacks.

"You talk of King George as though he is some crazed absolutist from a by-gone age. In truth, His Majesty is more of an ornament - someone to rouse the national spirit in time of war, someone for the troops to salute as they march through Parliament Square, someone to represent that intangible, unified essense of what it is to be Praetonian in a country of divided politics. He represents no more and no less than the aggregate sovereignty and self-interest of a nation of individuals, and they have no desire to dominate your little island outpost, only to see their property respected and, yes, to see your people pulled from their poverty. Entrance to the Praetannic "sphere" is not requested of or indeed offered to states that differ so radically in their conceptions of freedom, prosperity and rational foreign policy as to be almost completely alien.

"Sir, neither His Majesty, nor what he represents, has any interest whatever in fiddling about in Kahanistani politics any more than is absolutely necessary. The CPI and the government have produced this agreement, an agreement that will allow both of our interests to be realised, for precisely that purpose. Now you may prefer to pretend that this is a fantasy world in which communism and nationalism can simply raise wealth and prosperity from the dirt and recreate Kahanistan as a bold and defiant independent state, fully ready and able to defend itself against all the world, but that is not an option that exists in the real world. This is. And I would appreciate an answer."

ooc: Kahanistan, poke me on MSN, I need to ask you some stuff

"We needed that airforce to defend ourselves," said Karovic, slamming his loafer again. Spittle flew from his mouth as he spoke angrily. "Because of that treaty, an invasion of Pablicosta was never considered, though we did contribute to a fund to save people, which enjoyed massive popular support. We did request and fail to obtain permission for an attack on British Londinium, after they murdered millions of dissidents, I'll grant you - but they are still recovering from a Freekish invasion and are in no better shape than we are, and there was a fair amount of international support - it wasn't as if we were going in alone."

"I can see an agreement, but something on the level of twenty years is not something the populace would accept. Two years would be more reasonable, after which we will re-evaluate our situation, but I cannot commit this country and its next government to coping with the mistakes of this one, and I certainly cannot have terms dictated to me from Kingston with no possibility of negotiation."

"Minister, please," Vidann said soothingly, raising a placating hand. "Gentlemen, let us keep our heads. Minister, I would like to propose a compromise, and Secretary, I hope you will approve. The Kahanistani government does have the legal authority to approve a twenty-year measure, although I agree that the situation may change. However, such approval could be given a special legal status, with the result that when the next government is elected, they will have the right to review and re-negotiate the measure with the Praetonians, outside of the veto power of the King. This will prevent any accusation of Praetonian abuse of the veto; it is within the legal power of the Kahanistani government; and it does not chain Kahanistan to an agreement that may require adjusting before it has expired."

Redgrave was beginning to get slightly worried. The Kahanistani was a step away from foaming at the mouth, and the thought occured to him that the footwear with which he was making a serious bid to turn the table into matchsticks could easily be turned on him or the Kregeian if they said the wrong thing.

"No... sensible... business will invest on the basis of a mere 2 years of guaranteed good conditions - a single Presidential term is little better. The whole purpose of the agreement is to create security, on both sides - Kahanistan is secure in the knowledge that, even were the entire populace to be out of work, they would not want for any basic need. Similarly, foreign investors will have security that their investments will not suddenly become worthless. After twenty years Kahanistan will be a different place - sufficiently rich that it can readopt welfare and regulation without removing all reason for foreign investment to stay. Sufficiently rich that it can afford the first world army, airforce and navy that it desires without forcing its people deeper into poverty. If you agree to this, I believe the Lord Protector would be willing to return many of his powers, save that to block declarations of war."

"Ten years, and all of our rights save for declaration of war must devolve to us," said Karovic. A single presidential term was six, though there was a proposal floating to reduce it to three.

"Probably 90% of our declarations of war would be in response to terrorist acts against our nation, such as the actions by Canadstein's Intelligence Agency against us, or aggressive military action. The other 10%, the only ones we should be concerned about... well, we will never act unilaterally to impose our will abroad, but the international community generally supports interventions for human rights violations." His interpretation of the treaty allowed Kahanistan to defend itself or retaliate against terrorists, though getting the generals or the Senate to think that way wasn't showing to be very effective.

"You may accept the agreement, or you may refuse it, Mr Karovic," Redgrave said in a detatched tone. He smiled, almost sympathetically.

"I will not let you dictate terms to us, like a victor demanding unconditional surrender," said the Foreign Minister. "If you break off negotiations, that is of course your nation's right. But there are certain positions we will not move on, and weakening our independence is one of them." He seemed to show a harder line when he wasn't around the President.

"That said, I'm interested in knowing exactly what powers your government is offering to 'return' to us. I think that most businesses will invest if assured ten years of security."

"Your 'independence,' which is at present is not compromised over any issue you have already pledged not to act on, will increase if you agree to this," Redgrave looked puzzled, "and you are being offered what amounts to a gift of [tens of trillions of dollars] to maintain your welfare programmes without the need to tax your own country. Your truculance, for no reason you have identified other than personal pride, is beginning to grate. If you would prefer to see the present state of affairs continue, with your nation increasingly becoming segregated into SEZ and non-SEZ residents, then it is far more damaging to you than to me."

Karovic clenched his teeth. "Very well..." He figured that after ten (or fewer) years, the political situation might very well change to the point that revisiting negotiations might be feasible.

The Minister also figured that if he became too intransigent, he might be removed from his position. Then again, he had been appointed specifically because his personality was better suited to his position than that of his predecessor. "I'd like to... take a few moments to read over your proposal," he said. He seemed to be slightly frustrated, but not nearly as angry as he had been earlier when he was smacking the table.

He would need to know exactly what powers the King was going to return to Kahanistan - if he could give the President any good news, that would of course bode well for him. It might also take the wind out of the sails of the protest movements, though some radicals would of course remain.

ANN, Praetonia

John Mill, the Ambassador to Praetonia, was eating out yet again, with his wife and 4-year-old child. It was his daily habit to eat lunch out with his family. At 12:26 PM local time, two men entered the restaurant where Ambassador Mill was eating, and pulled out two Doomani made semi-automatic pistols, firing 45 rounds in the space of ten seconds at Mill, his wife, child, and bodyguard.

Mill and his son died instantly, taking repeated hits to the head, throat, and chest. Mill was hit six times, and his son four times. The bodyguard was paralyzed as a round nicked his spinal cord, and five more rounds caused injuries of various degrees to his torso, arms, and left leg. Finally, the wife, Susanna Mill, was hit seven times, and died on her way to the hospital.

The Allanean Republican Army, a secularist and anti-monarchist group allegedly aided by Doomingsland, claimed responsibility for the act of terrorism, further demanding that the United States stop all humanitarian and other aid to Kahanistan immediately.

We will bring you further developments as they unfold.