Meeting the Volkskanzler

[Serenierre]

Elisabeth Martinique welcome the Ostmarker delegation warmly. It was a long time since the conference room of the Chateau de Charbonne - an elegant palace dating back to the pre-revolutionary era - had welcomed a foreign dignitary. While the Seven Day War in Gallia had been a victory, there had not been much time available for the Villesen Government to play host while securing its control over the territories gained from the fallen Kingdom of Occitania.

Mme. Martinique spoke first, "Your Excellency, I hope your accommodations at the state guest house have been satisfactory," she smiled as she shook the man's hand, "And that you and your entourage have been well taken care of." After the initial round of pleasantries, the Premier and the Volkskanzler, along with their retinue were seated at the respective seats by the protocol officers from the Commissariat for External Relations and the meeting commenced.

The agenda for the meeting was purely economic and trade related and as such in addition to the respective foreign ministers, the finance and trade ministers were present as well.

"As the first point of order," Premier Martinique said, "The purpose of our inviting you to Villesen is to build a strong economic relationship, which is mutually beneficial and prosperous for our nations. We are committed to seeing the ties of Marxist brother-states deepen and strengthen, while respecting all our ideological differences. To that effect, we believe Serenierre can offer Ostmark a tremendous market for exports and we believe our economy, too, would benefit from engaging with Ostmark at a more engaged level."

 

[Ostmark]

For the first time since his rise to power, People's Chancellor Horst Grasser has left Ostmark to attend a meeting with a foreign government. The contacts between Ostmark and nations belonging to the marxist sphere of influence have been very limited and sporadical, for Ostmark's third way is often considered as a revisionist ideology which distinguishes itself with a unique economic and political system. Yet the similarities between Ostmark's National Syndicalism and Marxism are evident, and Volkskanzler Grasser gladly accepted the invite of Premier Martinique to discuss a trade agreement with the People's Republic of Serenierre.

"It is a pleasure to be here Madame Martinique as representative of the People's Republic of Ostmark. This is the first time i leave my nation for an official meeting, and from what i have seen your revolution has brought social justice and equality in a land previously ruled by a corrupt capitalist regime. In my short tour in the People's Republic of Serenierre i've seen nothing but progress and efficiency." said Horst "Yes, our ideological differences are evident, but i believe we should also take into account our ultimate goal: the dismantling of the capitalist free market system, to build a society founded on equality and proletarian solidarity. Ostmark would undoubdtely benefit from a trade agreement with the People's Republic of Serenierre, and we would be happy to trade with a fellow People's Republic. We'd be sure that the results of our trades will be invested for the benefit of the people and the working classes, rather than the benefit of one or two capitalist oligarchs"

People's Chancellor Grasser opens an enveloped with documents outlining in detail the resources and goods produced by Ostmark, with related prices in terms of cost of labour and raw materials. Many product cars are also available and will most likely serve as promotional pamphlets to be reviewed the functionaries of the People's Republic of Serenierre.

"Ostmark's economy is slowly but steadily recovering from the devastating economic crisis of 2014. Our economy was flattened. The austerity policies of the previous government only exaccerbated the effects. But the National-Syndicalist People's Party reverted the downspiral of poverty and restarted the economy, which is now rising thanks to our policies aimed at collectivization, nationalization and rationalization of resources and production." Horst takes a small pause, picking up one of the papers he previously placed on the table.

"Our factories currently produce electronic components such as circuits, fuses, cables. We have four operating steelworks that are directly owned by the state and ran by the workers who are organized in a trade union affiliated with the National-Syndicalist People's Party. Our country has been gifted with rich depots of bauxite and iron, used to produce cheap but solid and reliable steel. We also have large forests that we seek to exploit, while respecting nature and the ecosystem of course." Horst grasser continues and unfolds another paper.

"

You must be registered for see links

. It is a cheap and reliable car, manufactured entirely in the People's Republic of Ostmark by the nationalized car manufacturer company Ostmarkische Motoren Werke. This car is being adopted by large parts of our population thanks to its low price which truly makes it our volkswagen, our People's Car. We do have a small sector dedicated to oil extraction, but most of the ammounts we extract is directed to energy production and industrial activities. We do however plan to expand our oil extraction activities and eventually increase the ammount of oil we can afford to export"

 

[Serenierre]

Elisabeth listened quietly to the Volkskanzler. "Yes, we are well aware of the reliability of steel from Ostmark, as well as its economical nature. You see, as you must know, following the cessation of hostilities and the defeat of the monarchist Trier Concord, Serenierre has liberated all of Western Occitania from the control of the wretched King of Occitania. But of course the situation now is that we have been entrusted with salvaging the liberated territories of Occitania from abject destitution. We need to rebuild all the major infrastructure in the Protectorate, which shall of course be clear to you. With that in mind, I am sure you understand the value we place on steady and reliable supply of cheap steel and coal to sustain the reconstruction efforts in Western Occitania. Wood, too, would be an immensely needed product for the reconstruction efforts there."

"To that effect, how do you reckon your industrial base can assist us? Obviously, Serenierre shall provide liquid capital for your assistance but we can also provide," she flipped open a file to the marked page, "I believe your country has an urgent need for pharmaceutical products and food products. We believe that our pharma industries can easily supply a sizable portion of your needs and once the agricultural lands of Western Occitania are stabilized we can expect that their agricultural sector could assist your requirements as well. As you may know, Occitania is a mainly feudal agricultural economy, at least in the portions we have liberated. The industrial heartland remains under the oppression of monarchism."

 

[Ostmark]

"Our industries are currently working at limited capacity. The reason for that is the lack of reliable trade partners. At the moment, we are only producing goods that are strictly necessary for our economy, but with this trade deal things could change dramatically. For the better, of course. Despite our efforts there are still tens of thousands of people who need a stable occupation, so the availability of labour force will not not be an issue. We do have enough factories and facilities to sustain a continuous supply of steel, coal and wood. Our merchant fleet is also functional. The lack of trained sailors can be fixed by integrating members of the People's Navy who have the skill and the know how to pilot large cargo ships."

Horst pauses for a few seconds "...unfortunately we lack the financial resources to import large quantities of food and pharmaceutical products, and our agriculture is still too small to sustain the needs of our population. This has been our hardest challenge, and so far rationing of food supplies has barely maintained an adequate level of food availability."

"So," continues the People's Chancellor "considering that we cannot afford to buy food and medicines from Serenierre, i offer an additional discount on the steel, coal and wood we will export to your nation, commensurate with the quantity of food and pharmaceutical products you will export to the People's Republic of Ostmark. With your payments we will further expand our production capabilities, invest some of the revenues on oil drilling operations and the much needed reliefs for the poor, the sick and the unemployed. I am confident that by the end of summer 2019 we will be able to increase the ammount of products we can export to Serenierre."

 

[Serenierre]

"A barter system is not entirely against our judgement. If it would ease the burden on your economy we do not have any opposition to it, obviously, however, we do believe that Ostmark must show a commitment to creating a supply chain that will ensure no unnecessary delays. However, I would also like to state that certain financial institutions from Serenierre might be interested in facilitating your investments in the oil sector. I am sure Ostmark would prefer Socialist financing rather than resorting to having to engage with capitalistic banks. We must be careful, especially with resources such as oil, from becoming ideological playthings."

 

[Ostmark]

"I understand. Ostmark would categorically deny financial assistance from foreign capitalist banks, and the law of the People's Republic of Ostmark forbids usury. But if there are institutions here in Serenierre that can provide loans with interests no higher than 0,5%, which is the highest interest rate allowed by our laws, we will be glad to invest that money in our oil related activities. In the medium term, Ostmark would greatly increase its oil production and export, which of course would place the People's Republic of Serenierre as the top trading partner. At the moment our proven reserves are estimated at 1800 millions of barrels. But further exploration can probably unveil more depots off the shores of our islands in the Hamar Sea, which is known to be rich with oil and natural gas."

"So, our proposal is that Ostmark will export coal, steel and wood to Serenierre with an adequate discount commensurate with Serenierre's export food and pharmaceutical products in Ostmark, and if there are financial institutions that are willing to invest in our oil extraction industry, we'll be glad to accept their terms provided the interests rates don't violate the laws on usury in Ostmark, which set the highest interest rate to 0,5%"

 

[Serenierre]

"I can agree with that proposal however the 0.5% on interest would not be feasible for our banks either. Perhaps if some profit sharing agreement could be worked out with oil companies to recoup the investment. As, 0.5% would hardly cover the losses due to inflation. Perhaps if we could keep a floating rate of mark up which is within a range of 0.5% to 1% beyond the range of growth of inflation to offset the difference. However, I do believe the numbers can be worked out by the officials from our ministries. At a policy level I believe that if a fair bargain can be established for Serenien assistance for your oil sector, we can work together tremendously well."

 

[Ostmark]

After consulting the functionaries of the People's Ministry of Economy and Finance, Volkskanzler Grasser nods, stands up from his chair and offers a handshake to Premier Martinique "So be it Madame Martinique. Considering the advantages that both our nations will gain from this deal, we think 5% is a reasonable interest rate. Given the exceptional circumstances, i will instruct the Ministry to write an emergency decree that will easily override our regulations on usury and allow this deal to happen within the frameworks of law. Ostmark accepts your offer which i am sure it will benefit our people. We will show Europe that Ostmark and Serenierre have broken the chains of capitalist exploitation and created a system that allows nations to cooperate as equals, in the interest of the proletariat, rather than competing one against another in the name of profit and following the sick mantras of consumerism. The People's Republic of Ostmark will thank your forever."

 

[Serenierre]

"But I must insist that any oil that is discovered, Serenierre would be party to a profit sharing system wherein we could effectively recover our investment as well, while also provide a primary market for oil from Ostmark. I'm sure that is a fair arrangement."