Cunill Economic Summit

[Azilia]

Palacio de la Vedra

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Palace Vedro was located on the western shoreline of the capital city. It had been one of the many royal residences that were spread across the Republic. It had been one of the newest palaces constructed before the royal family had been exiled, with the foundation being laid in 1919 and construction completed in 1923 as a summer home for the royal family. Now it spent its time when not being used by the Caudillo or his close associates for their getaways as a location overlooking the Gulf of Cantabri and a suburb of Cunill.

It was once more being prepared for the Yuan delegation for a scheduled meeting later in the week. For the days before the conference, and during several ministers and a few mistresses would be using the residence.

 

[Azilia]

Palacio de la Vedra

The palace was prepared, the Azilian delegation that would call this getaway theirs for the next week were none other than Mauro Elizondo, the Minister of industry and labor, Andrew Fernandez the Minister of Finance, and Jose Rademaker the Foreign Minister. While the ministers had brought many staff with them, Andrew had brought along more of the staff of his ministry to be his pleasant distraction with the cozy sea front castle. The first few days would be for the ministers to each meet and gather their intentions from this meeting with the far easterners, a little play time was in order as well, why let a perfectly good palace not be taken advantage of from the former monarchy.

Transit by one of the militaries Mouros was pre-arranged for the arrival of the Yuan delegation from Cunill International to the private retreat.

 

[YUANGUO]

En Route to Palacio de la Vedra

Prior to the summit meeting, the Yuan Province (Treasury) Minister Shimei and his delegation of industrialists conversed privately in the vehicle afforded to them by the hospitality of the Azilian government. They were performing some last minute redrafts for the Azilians to consider, among which for the better, was a trade deal that had been prepared months ago to see if Yuan Guo could import Azilian iron ore in exchange for cheap coal, which was relatively scarce in the Republic. On the side for consideration were also a number of other deals, but none were more important than the deal aforementioned, for it would be paramount to the satisfaction of the growing appetite of Yuan Guo's manufacturing sector.

The Minister and his delegation exchanged a number of views ahead of the meeting, they concluded shortly before their arrival that they actually knew nothing about the habits of the Azilians, and may not be able play their hearts. Nonetheless, led by such an experienced statesman, the Yuan delegation were told by Minister Shimei to be as polite as possible and not to derail the meeting with their often arrogant nationalist tendencies.

In Palacio de la Vedra

Alighting from the armoured vehicle, the Yuan delegation were greeted by an affirmative politician, the Foreign Minister Jose Rademaker, whose correspondence between the Diplomatic Chambers' request and Foreign Ministry's acceptance had led to this summit. Minister Shimei took his pleasure to greet each of the other ministers who were accompanying the Foreign Minister. After some minutes had passed, and formalities exchanged between the Yuan delegation and their Azilian hosts, the round of trade negotations began in one of the rooms at the Palace.

Present with the Yuan Minister were Yuan businessmen who had followed to offer and grasp at whatever opportunities that came their way: the well-connected Chairman Taojin of the Yuan Chamber of Commerce, the energy magnate CEO Harvey Qin of Yuan Grand Industries, the diverse conglomerate industrialist CEO Derrick Chiang of Lily Holdings.

Minister Shimei: "Your excellency, Minister Rademaker. Thank you for accepting our request to hold talks for the future of business between our peoples. I would like to begin this discussion of auspicious time with a proposal that with regards to Azilian energy concerns, your cabinet colleagues may find profound."

"It is public knowledge that the security of energy and supply of it in your region is a growing concern. We have long understood that the scarce resource of coal in the region can manifest itself as a national concern and top priority. Toward this, my delegation is proposing to help Azilia with regards to solving this problem. Yuan Guo, for some time now, has always maintained an overwhelming surplus of coal to meet emergent demands in the domestic economy, however, we have resource levels now to a point where which we can safely and consistently provide cheap coal for power plants not only for Yuan but for those outside."

"We are offering to export coal to Azilia at favourable price levels over the course of 10 years, or if you want, even more. However, in order to achieve this and not hurt the bottom line of my associates, we would suggest eliminating all barriers to trade. And, of course it would be mutual. We are looking at capturing 55% of the Azilian market, given the scale of our operations."

"In terms of the governments wishes, putting the private sector offer aside. The government is looking to secure 60% of Azilian iron ore supply for the next 20 years, to enhance the streamlining and efficiency of the supply line for various emerging industrial sector entities. Of course, we remain negotiable, after all we are gathered here for mutually-beneficial opportunities. I would also like to hear any offers you may have, perhaps with regard to arms manufacturing. What is the latest equipment for sale?"​

 

[Azilia]

Mauro Elizondo

"Control of our exports and their destinations would be beyond our control, as the markets, business, and industry decide where it is they will be doing business. It is just not such as that, but sixty percent would be a crippling act for our own heavy industry as the steel-making, shipbuilding, and automotive industry amongst many others would be at that point competing over a greatly limited resource with only forty percent for domestic and the rest of the world, causing a drastic spike in global prices and domestic.

The economic practices of our regime, and the predecessors of my office, the Caudillo, and others in his cabinet has always been protectionist and export oriented secondly. To encourage, and make doing business easier with the Yuan Empire would be feasibly possible. We can reduce our export duty on raw iron ores, and pig irons, from the set rate of 3% to 1.5% that either the seller or purchaser depending upon their business arrangements with the Yuan Empire business interests. We would also be willing to reduce the duty on steel to 1%. That would ultimately leave it upon your side to determine if it wishes to keep a tariff on these items are remove it completely.

As for coal and coke, we would be willing to remove the tariff which stands at 8.5% allowing the Yuans coal industry an equal footing to compete with our domestic production. Domestic energy production relies less and less upon coal for power production with our coal fired plants only accounting for 10% of our total energy output. Our nation has a focus upon utilizing nuclear, geothermal, and hydroelectric for power production as we diversify our sources and reduce our reliance upon fossil fuels.

For agricultural purposes we are willing to reduce the tariff rate from 8.5% on such staples as rice and animal feeds to 1%, all other agriculture we are willing to drop the rate to 4%"

 

[YUANGUO]

Minister Shimei

"Well, I can't say I did not expect this. Of course, there are still economic differences between east and west, and indeed, the ideologies we have which contrast each other are not entirely aligned. We respect Azilia's business practices and standing traditions as we hope others do so as well. Azilia is always welcome to be an active participant in the flourishing Yuan market."

"We are willing and able to match Azilia's policy reductions. We find the terms for agreement and those within the proposal to reduce tariffs on a variety of critical economic goods put forth by your excellency, to be most encouraging. Although, the practices and culture of Yuan enterprise differs rather extraordinarily, we are glad to see at least some form of approach to reach reasonable compromise that benefits the established relationship of our countries and promises more in future."

"I should hope and seek that these general terms and other specificities be outlined in the MOU for archival purposes, as well as making so that it can be announced to the media for economic transparency with reasonable but not entirely excessive disclosure, and towards ensuring that efficient movements can be ushered in particular for the practical policy effect between all parties present."​

 

[Azilia]

Andrew Fernandez

"As it is known, Gran Moluca is a key gateway between our Republic and your Empire. It is a getaway for not just your rich and powerful, but that of the world far and wide. I personally think it would be for the benefit of both of our nations if we make this island easier to access with less paperwork and make travel to the Yuan Empire on short term easier for those that are there to be living their best lives on extravagant holidays.

My proposal for such would be we wave any visa requirement for those from the Yuan Empire coming to the island for less than seven days, and a waiver for those residing on the island or there on holiday whom may wish to take one of the ferries across the sea to your nation so they may have some visitation on the island for a 24-48 hour period, which then is an added benefit for the Yuan economy. If we make travel between these two regions easier, the flow of traffic will no doubt increase going both ways as residents will seek to shop in your nation for a greater variety as it opens more options to them, it could increase the demand for leisure stay in your nation across the channel where the island itself is has a limited capacity with limited construction available to increase the capacity for hotels."

 

[YUANGUO]

Minister Shimei

"Your excellency, Mr Fenandez. We are always open to considerations that bring mutual benefit to all sides of the discussion. Pertaining to the immigration and travel, to and fro, between Gran Moluca and the Empire, it would be satisfactory that in addition to reducing the paperwork required and fair waiver of visa requirements. That we look further into the future, and in doing so, coordinate and align an exclusive permanent residency scheme, perhaps some kind of Platinum PR for as you've mentioned, those that frequent the island."

"And to truly benefit everyone, it would be best to extend this scheme, perhaps one by investment, to Azilians holding residency in Gran Moluca as well. On top of all this, I am proposing that a new ferry port be built in Gran Moluca, funded and maintained by the goodwill of a Yuan concessionaire, to facilitate what could as a result of this development, give rise to an ever greater volume of business and recreational travel between the two territories. Looking at the long term, we expect volume of travellers and economic revenue on both sides to increase by half over the next three years. If your excellency would be so considerate to assess this proposal, I am certain Azilians would not be disappointed."​

 

[Azilia]

Andrew Fernandez

I would agree that we could indeed look into the possibility in the future of coming forth with a permanent residency scheme that would be suitable, while its beyond my scope to authorize such as it would have to be approved by the Cortes, as even will the proposal I have set forth already but I believe it would be the best way to begin to ease them towards a more open policy on the island.

A new ferry port to be built in the island for an increase in demand, and to help further promote the interests by making the travel easier. The port could be a 2 pier terminal, this would allow a timely manner of additional ferries to constantly be making the crossing. We have several small ferries that run each way currently, and two large ferries that handle larger loads of vehicles and passengers that do not make as frequent of trips across the bay daily. I would say that we aim to have the new facilities be built 50/50. With some portions of the project being undertaken by Azilian companies and the other half by the Yuan companies.

 

[YUANGUO]

Minister Shimei

"We are amenable to that. The proceeds and any profit made in the course of the port's operation can be handled by a jointly-held oversight body. We will put up half the cost for construction, and 5% of the total cost for construction to kickstart the project including the procurement of new ferries. And, we expect as you've indicated, that your government would allocate fair funding in this regard as well."

"Towards the aim of bringing about a PR scheme, we will patiently and eagerly await the Cortes' approval. It would be beneficial for all involved to expedite this, but I know he is a very busy person, so we will wait. Meanwhile, perhaps we can form a joint committee to assess preliminary ideas and concepts of what this PR scheme might look like. If your government is available for this, maybe we can organise an online conference held between us, perhaps by the end of this year?"​

 

[Azilia]

Andrew Fernandez

"This is a most agreeable offer and one that I believe will be one of the most successful points of these talks, surpassing even the tariff reductions we have agreed to on both sides. The Islands council has already placed an order for two larger ferries with the capacity between both for 3,000 passengers, which we believe over the course of a day could alone enhance the travel capacity between the two by up to 12,000 passengers daily.

I will submit the proposal to the Cortes de Azilia in the coming days for them to either vote and pass the PR scheme or to draft a modified resolution and vote upon it to bring before the Caudillo from which we may have to conference as you have stated to attempt and work thru any impasse if one does arise. The tariff reduction will be handled completely by my office and in coordination with a few other ministers with the explicit approval of the Caudillo.