[POR] Message to China

[Zebra]

Yi nodded. "Of course, Macau's Portuguese history goes back more than half a millennium, to remove those traces of the region's history would be nothing less than criminal. Much like is permitted in Xinjiang, Tibet, and the Cantonese speaking states of China, Macau would be granted the leeway within its state constitution on topics such as language. Existing Portuguese cultural and similar organizations operating within Macau and potential additional ones would of course also be allowed to operate there to enhance the cultural understanding. We would even welcome Portuguese exports in other areas of China to aid in the way we teach our children about the history of relations between our states. Concerning the weapons production, we would absolutely be happy to have any Portuguese orders constructed within our facilities in Portugal. As you said this would be a boon to both our economies."

Bruno

 

[Bruno]

"I deeply appreciate China’s recognition of Macau’s shared history and the efforts to preserve its cultural identity. The assurance that Portuguese cultural organizations will continue to thrive in Macau is both encouraging and a testament to the value you place on our historical ties. This approach, much like your policies in Xinjiang, Tibet, and Cantonese-speaking regions, reflects a respect for diversity within China’s broader national framework.”

He leaned forward slightly, signaling the importance of the next point. “Portugal is also delighted by your openness to expanding Portuguese exports to other regions of China. We see tremendous potential in fostering understanding through trade and education, particularly in areas like language programs, cultural exchanges, and cooperative ventures that highlight our shared history.”

The representative’s tone grew more deliberate as he transitioned to the topic of defense manufacturing. “On the matter of weapons production, I must say, your proposal to construct Portuguese orders within facilities in Portugal is particularly intriguing. Such an arrangement would not only support local industry but also create an economic synergy between our nations that extends beyond trade into strategic manufacturing." He leaned forward slightly, choosing his words carefully. “Would China be open to granting Portugal the licence to produce 250 units of the DF-21D domestically? This would ensure rapid deployment and allow us to develop the necessary expertise to maintain and upgrade these systems over time. Additionally, we are keen to understand how this arrangement could work, including the costs associated with such a license and any conditions China would require to facilitate this production.”

He paused, choosing his words carefully. “I would like to explore how this arrangement might function. Could Portugal potentially gain licenses or technology transfer opportunities to ensure long-term production capabilities within our borders? Such a step would truly elevate our partnership, making it one of mutual reliance and shared growth.”

Zebra

 

[Zebra]

"I am glad to hear you support our measures, would you perhaps be willing to agree to a joint statement announcing Portuguese support for the integration of Macau into the Republic? Of course we would be willing to add all the guarantees we discussed into said statement." She said, concluding the Macau part of today's discussions.

"Well, one of the few things the Communists did good is that all Chinese defense companies are owned by the state. This means that we have full control over their operations, we could open a subsidiary in Portugal operating under your business laws. Your government could then order equipment from them directly like you would any of your domestic military companies while it would also give us a manufacturing and storage site in Europe for easier distribution of any sales we make to other countries in Europe and Africa. We would have no issue allowing this subsidiary to produce any equipment for the Portuguese government and would only require a 10% charge over the production price to cover the intellectual property value."

Bruno

 

[Bruno]

He nodded with a warm smile, addressing both proposals confidently.

"Regarding Macau, Portugal acknowledges its historical ties and the importance of preserving its cultural and linguistic heritage. A joint statement could certainly serve to formalize our mutual understanding and demonstrate Portugal’s commitment to supporting Macau’s integration while ensuring that the guarantees we discussed—on language rights, cultural preservation, and operational freedom for Portuguese organizations—are enshrined and respected. If these assurances are clearly articulated, we would be open to crafting such a statement together."

Turning to the defense proposal, he continued enthusiastically.
"The subsidiary idea is a visionary step forward, and Portugal fully supports this initiative. Having a manufacturing and storage site under Portuguese business law offers significant opportunities for both nations, and the 10% intellectual property fee is entirely acceptable. So for example for something thats costs like 10 dollars we would give you 10% of that. For cases like this, we already have a template agreement designed to facilitate such partnerships. I will ensure that this document is carefully adjusted to reflect the specifics of this arrangement."

He leaned slightly forward, speaking with conviction.
"Once the necessary tweaks are made to the agreement, I will present it for your review. This document will outline the operational framework, licensing conditions, and mutual responsibilities, ensuring that our partnership is built on a strong and transparent foundation. Portugal is ready to move forward with this collaboration and looks forward to signing this agreement as a demonstration of our growing strategic relationship."

After some tweaks to the template he would present it.

Draft Agreement for the Establishment of a Defense Subsidiary and Licensing Framework

This Agreement is made and entered into between the Portuguese Republic, hereinafter referred to as "Portugal," and the Republic of China, hereinafter referred to as "China," collectively referred to as "the Parties."

Purpose:
The purpose of this Agreement is to establish a Chinese-owned defense subsidiary operating under Portuguese business laws to manufacture, store, and supply military equipment within Portugal. This Agreement further sets the terms for licensing arrangements, operational frameworks, and mutual responsibilities to ensure the successful implementation of this partnership while protecting the interests of both Parties.


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Article I: Establishment of the Subsidiary

1. Ownership and Compliance:
The subsidiary will be wholly owned by the Chinese government or its designated entity and shall operate under Portuguese business laws, regulations, and taxation requirements.


2. Location:
The subsidiary will establish facilities in Portugal at a mutually agreed location, ensuring accessibility for Portuguese military requirements.


3. Employment and Economic Contribution:
The subsidiary will prioritize hiring local Portuguese talent to support economic growth and job creation within Portugal.




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Article II: Licensing and Intellectual Property

1. Production Rights:
Portugal is granted full licensing rights to manufacture military equipment designated under this Agreement within the subsidiary’s facilities.


2. Intellectual Property Fee:
Portugal agrees to pay a 10% intellectual property fee on the production cost of licensed equipment.


3. Non-Interference Clause:
China agrees not to block or suspend Portugal’s licensed production under any circumstances for a minimum of one (1) year from the effective date of this Agreement.


4. Exclusivity Clause:
Equipment manufactured under this Agreement is exclusively for the use of the Portuguese government and may not be sold, transferred, or distributed to third-party nations without China’s written consent.




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Article III: Operational Safeguards

1. Production Stability:
The subsidiary will maintain sufficient production capabilities to meet Portugal’s defense needs, ensuring no delays in fulfilling agreed orders.


2. Conflict Clause:
In the event of international disputes involving either Party, Portugal retains the right to continue production under this Agreement for at least one (1) year, regardless of geopolitical conditions.


3. Transparency:
The subsidiary will provide regular production and financial reports to both Parties, ensuring transparency and accountability in operations.




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Article IV: Oversight and Governance

1. Joint Oversight Committee:
A committee comprising representatives from both Parties will oversee the operations of the subsidiary to ensure compliance with this Agreement.


2. Dispute Resolution:
Any disputes arising under this Agreement will be resolved through bilateral negotiations. If unresolved, the matter will be referred to an international arbitration body mutually agreed upon by the Parties.




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Article V: Amendments and Termination

1. Amendments:
This Agreement may only be amended with the written consent of both Parties.


2. Termination:
Either Party may terminate this Agreement with one (1) year’s written notice, provided that any ongoing production or deliveries are completed as per existing commitments.




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Effective Date and Duration:

This Agreement shall take effect on the date of signing and remain in force for an initial period of ten (10) years, subject to renewal by mutual consent.


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Signatories:

For the Portuguese Republic:


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[Name]
Secretary of State
For the Republic of China:


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[Name]
Authorized Representative