[PRC] Communication to the Argentine Republic

[Dutchy]

"Ah yes, I nearly forgot. Shipments can be sent to the Port of Shanghai. I believe we also need to agree to an interval term on the shipments, how does a weekly trade sound

"In regards to the bonds, the People's Bank will be seeking to multiple entities to acquire them. We would like to offer Argentina the rights to purchase two bonds of $2.5 billion, with a maturity term of 12 months and and interest rate of 10%."

Naio90

 

[Naio90]

"We will submit the trade routes as soon as possible so that we can initiate bilateral trade. We look forward to increse commercial exchange in the near future, and this will surely be opening some doors.

As for the bonds, the 10% interest rate would be monthly or yearly? We are considering acquiring one bond first and the other afterwards, in a upcoming financial term."

Dutchy

 

[Dutchy]

"The interest rate attached to the bond is calculated for an annual basis, though the People's Bank does offer the possibility for either an annual or monthly payout of the interest. So attached to a single bond would be an interest payment of $250 million at the end of the term or $20,833,333.33 on a monthly basis."

Naio90

 

[Naio90]

"I understand. Would it be possible to adjust the interest percentage slightly to match more closely the current international standard of 20% yearly? If that would be the case, we could confirm you the acquisition of one bond this tax period and another one one the next or following period.

Are there any terms and conditions we should be aware of?"

Dutchy

 

[Dutchy]

"I have to admit Minister, that I am not aware of any international standard in regards to sovereign bonds, as far as I am aware these would be one of the first of their kind on the international market. Unless you are referring to the interest rate set by Sparrow Industries on their loans."

"If that is the case, then I wish to inform you that we are unable to match their interest due to the simple fact that their interest is tied with the risks they take. In the case of our sovereign bond, there is simply less risk attached as it is issued by, and I hope you can agree, a trustworthy government. As a gesture of goodwill, we are willing to increase the interest rate on your first bond specifically to 15%."

Naio90

 

[Naio90]

"I apologize if we offended you, it was certainly not our intention. We are just concerned with making this compatible with our current ambitious infrastructure development program, which requires an ivnestment of over 27bn USD over the coming months. The interest rate as you mentioned usualyl goes around 20%, but obivously we can accept the 15% you offer. I must repeat that we are very interested in contributing with the PRC's.

On other issues, we wanted to inquire about the PRC's position on a very relevant matter that has currently the attention of the international community, Antarctica. As you surely know by now Argentina had some differences with some european nations regarding the sovereignty of the white continent. At the moment it looks like a preliminary agreement might be in the works at the GA.

In this context, we wanted to explore the possibility of signing a scientific cooperation agreement with China, inviting your country and scientific academy to participate in joint research projects on the Argentine Antarctic Territory, possibly running a joint station."

Dutchy

 

[Dutchy]

"Minister, please no offence taken. I believe it is important that have the ability to speak honestly to each other. I am pleased that your government is willing to acquire a sovereign bond, I shall inform the Governor of the People's Bank to contact your Ministry of Finance to finalise the agreement."

"The People's Republic at this moment maintains little interest in the Antarctic region, and is simply interested in future scientific cooperation with an antarctic state. We also believe it is not in our interest to tie our-self to a single party, as this would simply cause a deterioration of relations with the opposing state. Therefore, we hope that a mutually beneficial agreement can be agreed upon."

"We are grateful for your offer, while we do have any plans for antarctic programmes, and we'd be interested in exploring the possibilities of cooperation with the Argentine Republic."

Naio90

 

[Naio90]

"We understand that there should be no problem regarding any antarctic activity, since it is planned to take place within the Argentine Antarctic Territory, as recognized by the GA. Just let us know when you're ready.

I have received confirmation that the trade routes have been established and are active, we look forward to further expand bilateral trade in the near future."

Dutchy

 

[Dutchy]

"I am not suggesting that we shall face any legal issues, rather it is that the government is unable to prioritise any antarctic activities at this time, except for small-scale joint missions which will heavily rely on Argentinian infrastructure and capabilities."

"I can also confirm that our route has been finalised and trade should commence soon."

Naio90

 

[Naio90]

"We understand. We would love to talk about this issue in the future, when the PRC might have a more time at its disposal for larger scale antarctic activities.

Do you happen to have a draft of the new bonds contract? So that we can proceed on that matter."

Dutchy