[ Mail ] To Senator Dewa Lanadi: Loan and Corporate planning

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Lord-Senator Kachiso Doshima
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Chancellor Dewa Lanadi
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Lord-Senator Kachiso Doshima
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Dear Lady-Senator Dewa Lanadi,

A while back I told you of the Astrian Colonial Authorities intention to take out a loan and that I would contact you again when I knew more. I am now contacting you to inform you that the ACA would like to take out a loan of 20,000 (:tax) over the course of 8 (:turn). We would like to start this loan in (:turn) 308 and start paying back the loan in (:turn) 316 in instalments of 500 (:tax) per (:turn). We would like to know what the interest rate would be on this loan and if the Veolian Commonwealth would be willing to provide it to the ACA.

A part of this loan will be used to create a Weapons (:weapons) Corporation to increase our (:weapons) production to help relieve the current shortage. We were hoping the Veolians would be willing to join us in this endeavour. You would, of course, be allowed to move your Corporate HQ to the Novalia System and be allowed to specialize your own zones with the Corporation owned by the ACA. Would the Veolian Commonwealth be willing to enter such a partnership?

I look forward to your reply.

With kind regards,
Lord-Senator Kachiso Doshima
Post Chancellor Dewa Lanadi » Sat Apr 15, 2017 5:00 pm
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Chancellor Dewa Lanadi
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Dear lord-senator Kachiso Doshima,

As promised, we are willing to offer a low interest rate on this loan. Normally, we would calculate between 40% and 30% interest on loans that are returned to us at this pace. Because we can invest 20000 (:tax) in the development of our own settlement, and expect to make profits on this we need to balance the cost of not investing in our own economy against the profit on the loan. In this case, we propose an interest rate of 15%. That would mean a repayment period of 46 (:turns) at 500 (:tax) per (:turn). Of course, if the ACA wishes to stick to the 40 (:turn) repayment period, it is also possible to increase the rate to 575 (:tax) per (:turn).

We do not currently have a stake in the (:weapons) market, but we do have a large interest in the (:gasses) industry. As such, we would like to join you in this endeavour. Unfortunately, we do not have the funds to both transfer the loan, invest in a corporation and keep to our other domestic and foreign commitments. So we could start a corporation, but this would require at least 16 (:turns), which might not be something you are willing to wait for.

I look forward to your reply.

Sincerely yours,
Senator Dewa Lanadi
Post Lord-Senator Kachiso Doshima » Mon Apr 17, 2017 3:44 pm
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Lord-Senator Kachiso Doshima
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Dear Lady-Senator Dewa Lanadi,

An interest rate of 15% is acceptable to the Astrian Colonial Authority.

You are correct in assuming 16 (:turn) is too long a period for us to wait for a corporation, but perhaps there is a way to speed things along. If we would start the loan in (:turn) 313 instead of (:turn) 308, would the Veolian Commonwealth be able to complete their Corporate HQ in (:turn) 312?

As for the details of the corporate agreement, the ACA is planning to specialize 4 zones with each corporation. Thus we would like to have at least that many zone rights. We would also prefer not to transfer any zone rights to any third party. I believe it would be most profitable for the Veolians to move their Corporate HQ to the Novalia System and, as I already stated, you would be welcome to do so. Would the Veolians need any zone rights and if so, how many?

I look forward to your reply.

With kind regards,
Lord-Senator Kachiso Doshima
Post Chancellor Dewa Lanadi » Mon Apr 24, 2017 8:54 pm
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Chancellor Dewa Lanadi
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Dear lord-senator Kachiso Doshima,

If the start of the loan is postponed, we will be able to complete our corporate HQ in (:turn) 312. But this is, of course, predicated upon reaching an agreement with respect to zone specialisation rights.

Since the Veolian Commonwealth will not be heavily investing in the (:weapons) industry, an exchange of zone specialisation rights is less valuable for us. It would have value if we were able to transfer our zoning rights on to a third party, but I understand your desire to limit access to specialised weapons production. Unfortunately this constraint leaves us in somewhat of a bind, since specialisation with only a single weapons corporation has near-zero added value.

Therefore, we propose the following:
  • The Astrian Colonial Authority can acquire up to 8 zone specialisation grants from the Veolian (:weapons) corporation at a cost of 500 (:tax) per grant, these specialisation grants will be restricted to specialisations within ACA territory.
  • The Veolian Commonwealth can acquire up to 8 zone specialisation grants from the ACA (:weapons) corporation at a cost of 500 (:tax) per grant, these specialisation grants will be restricted to specialisations within Veolian territory.
  • The Veolian Commonwealth may freely move their corporation headquarters to any (:weapons) zone specialised with the Veolian (:weapons) corporation within ACA territory
This will allow both our worlds to invest in the (:weapons) industry when the time is right, while at the same time not penalizing either faction for holding of on such investments. And since we do not expect to need any specialisations in the foreseeable future, we can move our headquarters to gain a small measure of benefit from the arrangement.

I hope that this is an agreeable solution for you. I would have liked more time to negotiate the matter, but our budgetary requirements are such that I need to conclude these negotiations before the end of (:turn) 308. I look forward to your timely reply.

Sincerely yours,
Senator Dewa Lanadi
Post Lord-Senator Kachiso Doshima » Wed Apr 26, 2017 2:50 pm
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Lord-Senator Kachiso Doshima
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Dear Lady-Senator Dewa,

We have no significant issues with the terms you propose. Though the Astrian Colonial Authority would prefer a cost of 300 (:tax) per grant for both sides. Would that be agreeable for the Veolian Commonwealth?

With kind regards,
Lord-Senator Kachiso Doshima
Post Chancellor Dewa Lanadi » Sat Apr 29, 2017 2:35 pm
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Chancellor Dewa Lanadi
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Dear lord-senator Kachiso Doshima,

I am afraid that with the lack of specialized zones in our own systems, the process of establishing this (:weapons) corporation is an expensive proposition on our side. To justify the costs there has to be at least the prospect of future income. As you expect 4 specialisations are needed, our proposal would come to a payment of 2000 (:tax). With the note that these payments are made over time, and only when the actual investment into a larger (:weapons) production is made.

I have given you an honest assessment of the value we attach to these zoning rights. As such, we are willing to lower the cost of the grants, but that would require a change in the terms of the agreement.

We can agree to the lowered price of 300 (:tax) if specialisation grants we acquire from the ACA are not restricted to only be used in our territory. That is, we want to be able to acuire specialisation grants for the ACA (:weapons) corporation and give a third party the option to use our grant. We do not wish to reciprocate by lifting the restriction from our own grants.

With this change, we still have the prospect of eventually receiving about 2000 (:tax), but about 900 (:tax) of this sum will come from other sources than the ACA. Though I must admit that I do not see this happening in the near future, as few economies are ready to start producing large quantities of (:weapons) at this moment.

I look forward to your reply.

Sincerely yours,
Senator Dewa Lanadi
Post Lord-Senator Kachiso Doshima » Sat Apr 29, 2017 3:19 pm
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Lord-Senator Kachiso Doshima
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Dear Lady-Senator Dewa,

With the terms you propose, the ACA would prefer the first option of 500 (:tax) per grant. With specialization restricted to Veolian territory.

We would like to pay for the first grant in advance. We would like to pay this (:turn), that way we can specialise immediately in (:turn) 313.

I look forward to our continued business together.

With kind regards,
Lord-Senator Kachiso Doshima
Post Chancellor Dewa Lanadi » Sat Apr 29, 2017 5:37 pm
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Chancellor Dewa Lanadi
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Dear lord-senator Kachiso Doshima,

Then, with restrictions intact and the price set of 500 (:tax) per grant, we have reached an agreement.

The Veolian Commonwealth has no problem receiving the payment in advance.

Sincerely yours,
Senator Dewa Lanadi

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