Reitzmag-North Dissien Summit

[North Diessen]

Prime Minister Bridges's words were exactly what Inge had surmised he had come to North Diessen to arrange. Slightly slyly, she smiled. She knew what he asked was impossible - well, theoretically possible, but practically? This would be a good test of her diplomatic abilities, and of how much she could wring out of Reitzmag, which she knew was desperate for a friendly partner in the region. "Mr Bridges", she began, "You ask what I cannot deliver. At least, not now." From the table next to her couch, she pulled out a topographical map of North Diessen.

"You are not entirely accurate in calling this highlighted stretch of river a canal, Mr Bridges. It is, indeed, the river Veleka, Which branches off from the river Kızılırmak in the north, then winds its way through the Great Plains of Linnich - a confederally protected national park - and several small streams then flow into the river Sakarya, which, as you rightly say, then flows into the Persian Gulf. The two main rivers are indeed navigable, but the small river Veleka is, most definitely, not."

[Kingdom of Reitzmag]

Simon knew that North Dissien is strategic and he knows how he could help them. So, he addressed Inge.

"Certainly, I know the area is still just a river. But I have continually called it a canal, which is why I am here. You see, there are lots of advantages North Dissien would get here if we build a canal. First of all, you can levy taxes on ships that will pass through this canal which would strengthen your economy when it comes to imports and exports. The reason I am here is to propose the construction of such, many Reitzmic companies have already submitted their portfolios to my office for the construction of this canal project. So, if you will accept my suggestion and offer, we will help North Dissien in developing its economy. There is only one request we ask if in case you will take my suggestion, and that is if we can be exempted from this tax."

Simon put the portfolio compilation on the table. And since he knew that North Dissien's Defense Forces are struggling, he thinks he could also help them. So, he waited for Inge's response before he introduces his idea for a defensive alliance.

[North Diessen]

This was somewhat of a crunch moment for Inge. Her choice was clear: either she sided fully with Reitzmag, and thus entered into a type of Caspian Alliance that could potentially benefit her nation and her military. However, this step would abandon the Diessenian principles of neutrality, which would be a rather tough sell internally - neutrality was semi-codified in the Confederal Constitution, and a Confederal Assembly would be required to ratify any changes to those principles. Furthermore, allowing a foreign government to dig through a major Diessenien national park was not something she would get away with without holding a major plebiscite.

"Mr Bridges, you are putting us in an immensely difficult position. I simply do not have the power to allow you to build this canal. And if I did, I am not immensely convinced of the benefits for North Diessen. We have an extensive railway network linking our cities on the Persian Gulf to the ones on the Caspian. We simply see no commercial demand for the canal of which you speak. The only demand, indeed, seems to be from your kingdom.

"Several conditions would need to be guaranteed for the construction of this canal to take place. First, your government must guarantee it will pay for the full cost of construction and, let's say, at least 10 years' worth of maintenance and upkeep. More to the point, the plans for this canal must receive the approval of a specially-called Confederal Assembly and of a majority of the population of the State of Linnich."

Inge hoped she had been tough enough. Her Presidency was always meant to be an end to Europe's bigger powers treating North Diessen as some kind of colony. As a semi-uninhabited territory they did not have to take into account. That would end now.

[Kingdom of Reitzmag]

Simon was surprised by Inge's response, so he immediately addressed her.

"Ms. Inge, I would accept those terms as an executive. Given, that Reitzmag will have a fair share in the canal's administration for 9 years. I know that it would benefit my country too, but there are lots of benefits for such a project. If you look at the strategy done by the Spanish Government on the Straits of Gibraltar and Adventuranza, they have used the areas for profit. Many nations would ask you to also give them exemptions to the taxes you could levy in exchange of their precious resources. North Dissien can become a major trade hub of Europe with goods from countries in the Caspian and those far away across the Atlantic. Speaking of which, my country has lots to offer for your armed forces. We produce high quality materials and stealth combat aircraft, so I think you should consider the benefits of being our partner" explained Simon, then he drank a glass of water.

[North Diessen]

"Ah", thought Inge, "So that's why Bridges has truly come to my country. To sell weapons." Her facial expressions changed from cordial and friendly to neutral and, if Mr Bridges noticed, slightly suspect. "Mr Bridges, one topic at a time, please. North Diessen is a neutral nation and will remain so, we are not currently interested in arms purchases from Reitzmag and certainly not in stealth aircraft that could antagonise our neighbours. Now, as for this canal, it is painfully clear why you want this. It is less clear why I should want it.

"I need to bring about changes in North Diessenian Confederal Law in order for this to theoretically happen. Moreover, I am someone who trusts in popular sovereignty. I cannot, could not, let this project go ahead, let a foreign power construct what is essentially military infrastructure, let's be real about this, without letting the people who live near this infrastructure decide whether it should be allowed to happen."

Bundesfinanzbeauftragte Emma Artabanoğılu stepped in, knowing that Inge's temper was running short, this soon into the meeting. "Mr Bridges, I'm sure you realise the Diessenian Finance and Economics Affairs Ministry would have to conduct extremely detailed assessments and come up with projections as to the economic benefit of such a canal for our country. Furthermore, if this canal is primarily to serve as a military passage for Reitzmic armed forces, well, I'm not sure how much capacity there will be left for commerce at all."

[Kingdom of Reitzmag]

Simon was shocked once more and knew that he's about to lose hope.

"Ms. Inge, I'd first like to say that this canal is not mainly meant for passage of vessels from our Armed Forces. I am proposing this clearly for the sake of trade and commerce. Please take note that hundreds of ships would be able to pass through if such project would be done. Furthermore, Reitzmag has a very active trade import and export industry which would make this canal very useful. And I suppose, I think that we can construct it in a different area rather than this river. I propose that this would be a nice area." then Simon brought a plastic film and placed it over the map Inge laid out and started drawing an area using a whiteboard marker.

[North Diessen]

"Excuse us, just a moment, Mr Bridges", said Inge, before taking Emma into the corridor just a moment. "So rather than expediting an already existing route, he is now proposing a brand new canal, of greater length than the original proposal, and, judging by the map, running through or near the city of Izmi? What... what?"

"We can't just leave him sitting there, Inge. We either offer our demands, or we send him away. We can't afford to antagonise our relationship with Reitzmag as well as Inimicus - what other neighbours do we have? Dromund Kaas is in chaos, Inimicus hates us, Reitzmag would be at our tails if we send Bridges off now."

"But his proposals... this is almost a violation of our national sovereignty."

"It doesn't have to be", Emma said, giving Inge a meaningful look. The two women re-entered, Inge apologised to Simon for keeping him, before saying: "Mr Bridges, if you want your canal, it will be on our terms, not on yours. We will design the route. We will attempt - note: attempt - to legislate for the appropriate persmissions. We will organise an all-state referendum. And if all those necessary developments come through, you will have to pay."

"Those are the terms of my government. You can accept them, or you can refuse them. But I am afraid there is very little in terms of wiggle room here."

[Kingdom of Reitzmag]

"Ok Ms. Inge, I will allow those terms. We will pay entirely for the construction of such but we only wish to have control of it for 2 years. All ships, private, commercial, or military must be allowed to pass."

[North Diessen]

"Very well. Do note that similar canals of slightly shorter length, which are the best comparisons we have, took several years and around €400 billion to build, so I do hope the Reitzmag government's chequebook is capable of covering this and waiting for a bit. Obviously, through to the superiority of North Diessenian engineering the construction times might be shortened somewhat, or perhaps even significantly. The Confederal government would appreciate a down payment of, perhaps... let's see - what would you say, Emma?"

Inge gave Emma a meaningful look, one which the two women had become used to. They fought their election campaign together, they formed their government together. Inseperable. Communicative. Powerful. "We have to factor in the costs of planning, staffing, developing and surveying the land. Then there's the costs of running a pro-canal campaign in the upcoming referendum... Hmm, I'd say around €30bn would suffice. Can we agree on this? It would improve the chances of our winning this referendum significantly."

[Kingdom of Reitzmag]

"Ms. Inge, that is pretty much not that fair. So, I think it would be fair if Reitzmag pays for it while we get 10 years of control over the canal's operations. If our budget is not enough then I will add from my personal money."

[North Diessen]

"Hang on, hang on, Mr Bridges - that was not part of the agreement. North Diessen demands Reitzmag pays at around 10 years' worth of maintenance for this canal, but we will not allow parts of our country to be colonised by a larger power. We experienced this in the past, we will not experience it again, certainly not under my presidency. "

Inge sighed. She had known from the start this would not be easy - she had different interests to keep at heart. She was a fiercely independent politician who loved a fiercely independent North Diessen. She was also - partly - convinced by the Reitzmig PM's promise of economic development.

"Let us summarise the proposal as it currently is on the table. Reitzmag, of its own volition, will fund the full construction of this canal, which is to be designed by North Diessen. Before construction can begin, North Diessen will have to seek parliamentary approval, as well as approval from the Confederal Assembly of Linnich and, importantly, from a national majority of voters. Reitzmag is also asked to pay for 10 years' worth of maintenance on this canal. Following completion, Reitzmic ships will be able to pass through the canal as though it were the open sea. A down payment of €30bn is proposed.

The only parts that are, in our eyes, up for negotiation, are the figures of 10 years and €30bn. The rest is simply not negotiable for us."

[Kingdom of Reitzmag]

"Ms. Inge, it wouldn't be fair for us if we will pay for a project that North Dissien will be the main beneficiary of. So, maybe we could agree that Reitzmic Ships will have unlimited free access to the canal for 10 years. That would be pretty fairer. But, our government can't pay 30bn Euros a year, we must pay the actual cost which we could estimate to be lower than 20bn Euros. Our 2020 Budget allots 4.24% of it for Other Expenses including foreign projects. We cannot include our another 4.58% of the budget allotted for debt interest. We need the final estimation before we pay."

"Though I think it would be better if we set that aside and talk about other things such as free trade and free movement. I can sense that our discussion is getting hotter so I think we should chill."

[North Diessen]

Inge frowned somewhat. "€30bn per year was not at all what I suggested, Mr Bridges. The €30bn is a down payment figure for estimation, exploration, and design work to start taking place. But I see that the interests of Reitzmag and North Diessen are at conflict here: you describe us as the canal's main beneficiary, but it seems to me that Reitzmag is, almost entirely, the number one on this.

Anyway, it seems it is impossible to reach agreement on this at present. I must say, I am not entirely sad about this, but I recognise it is, for you, a defeat in and of itself. We may return to this at a later date. What proposals did you have on free trade and free movement, or other matters?"

[Kingdom of Reitzmag]

"Ah yes Ms. Inge, I think we should talk about free trade and free movement for now before we continue our discussion about the canal. And I will instead add some from my own money but I want to make sure that the surplus will be returned to us at the exact cost. Maybe that would be agreeable."

"Now onto the free trade and free movement. Ms. Inge I think it would be very beneficial for your economy to have us as a free trade partner. Our Euro GDP is about 10% of that of the Duxburian Union. And we think that North Diessen can also achieve this. If we remove customs duties and trade barriers between our countries, it would be beneficial for both our nations. More Reitzmic investors will start to flock to North Diessen and establish a foreign branch of their companies."

[North Diessen]

"I think, Emma, this is more your point of expertise", Inge said, happy she could calm down somewhat. "If you'll excuse me just a few moments, Mr Bridges, I'm afraid the porcelain throne is calling."

Inge left the room almost as quickly as she could to blow off steam outside. Emma knew exactly what was going on, but kept her composure. "Mr Bridges, I think this is something we can agree on fairly easily. A complete removal of customs duties and import/export tariffs is something we would definitely be interested in, especially given the huge potential of our northern coastline for international trade. Yes, this is definitely something we would be interested in, and we would even be willing to sign an agreement on this today. Did you have any other proposals for us?"

[Kingdom of Reitzmag]

"Of course duty always comes Ms. Inge" said Simon to Inge as she began to leave

"Ms. Emma, I'm very glad to hear your interest in such proposal. And I think we should also agree on free movement. As I have continually tried to tell you, Reitzmag is a friend and I want to prove that. Our motive for these projects are for the good of both our countries. Not a single proposal I have mentioned is meant to harm North Diessen nor make it a puppet or colony of my country. All we want is to prepare North Diessen for the future and develop it for the future. I want to prove to you that we have no intention of being a colonist of your country."