"The purpose of diplomacy is to serve the internal affairs and satisfy its own development while taking into account the interests of the overall civilization."
This sentence was written by Wang Qi to the Ministry of Foreign Affairs and is also the activity program for diplomats.
To be realistic, sometimes you need to obtain what you need through profit sharing, such as the market.
A country with a population of millions, or even tens of millions, will never be able to achieve a full industrial chain. This is subject to the limits of human beings. Even if mixed-race people have physical fitness and strength that are much higher than normal people on average, they cannot change it. Therefore, at the macro level of development, we cannot think about wanting everything, and we must give up most low-end industries.
But since it is an exchange between the state and local or other countries, giving up is not unreasonable. It requires equal exchange to obtain a larger market for mid-to-high-end products.
The document that Chief Executive Lai Wen brought up was about the terms of the recent agreement.
Most of the agreements there are for individual sectors, that is, in the form of a country versus a lord or a group of lords.
Of course, Fatel and Ongi also contributed, but they were relatively close to the formal idea.
The Phoenix Kingdom only has two and a half floating islands, and it has spent countless efforts to maintain the exchange rate of personnel and materials. Fatel and Ongji are larger in size, and their organizational form and production capacity are more backward. It is inevitable that There has been a decline in dominance.
At this stage, signing substantive things with two companies may not necessarily work, so the focus of diplomatic work has already shifted to the local government.
The agreement between Fatal and Ongi is mainly about monetary direction.
Wang Qi took a look at the precious metal reserves in his wallet and knew that both families were short of money. At this time, in order to avoid being attacked on three sides, he had to lower his profile.
The essence of currency is just an easy-to-carry transaction intermediary. There is no need to impose too many things. Is there a big difference between collecting banknotes and collecting gold? It may vary greatly for individuals, but the Phoenix Kingdom still imports low-grade products and exports unequal high-value-added products, but the precious metal reserves will no longer increase rapidly in this process.
The focus is on the source of currency value protection of Phoenix Coin, which is the zero-cost public services (water purification, partial domestic sewage treatment, currency supply) and food (sugar water) provided by the sacred tree, as well as the strict management of iron prices.
In this system, as long as the sacred tree does not completely wither, the value of the Phoenix Coin will always be a matter of Wang Qi's signature and will not be affected by the precious metal reserves.
Banknotes are just more volatile than precious metals, and this volatility is disliked by both parties. The banknotes that Fatal and Wengji have not yet issued need to be endorsed by the Phoenix Kingdom, and they also have to ensure that their businesses will not be affected by it. Currency fluctuations have resulted in losses, so there is a possibility that the three parties will reach an agreement on the project.
Weng Jifang's negotiation progress is relatively smooth, let's look at him first.
The economic activities of Wengji are not as good as those of Fatel, and there are many self-sufficient farmers, animal husbandry and fishermen. In addition, the Phoenix Kingdom has a certain hard demand for livestock products. Before the floating island, the currency flowing to the Phoenix Kingdom was relatively limited, and precious metals were outflowed. The situation is better, so the new coins are still in the preparation stage.
The Ministry of Foreign Affairs also asked, and Ongji’s reason for preparing new coins was very strange. He was greedy for the fact that fartel could be bought and sold with paper, so he also wanted to do it.
Of course, the reason has nothing to do with negotiations, but it is different to be able to take out precious metals in your pocket. The plan proposed by the Ministry of Foreign Affairs is an agency reserve value preservation plan.
The implementation method of this plan is that Wengji will deposit a sum of gold to Phoenix Bank for foreign exchange settlement. When the amount of foreign exchange settlement is exceeded, Wengji will be required to pay additional gold.
For example, the initial stipulation of Ongji's new currency is to exchange one hundred new coins for one gram of gold, reserve ten tons, and settle the exchange at 110%. Then Phoenix Bank guarantees that anyone can come to the bank with Wengji New Coins to exchange for Phoenix Coins (not gold), and when the total deposited amount is less than 1.1 billion, it will insure the value of Wengji New Coins and only charge a handling fee of 2‰ . The deposit amount is the total amount of new currency in the bank balance, excluding the exchange of Phoenix coins for Wengji new coins.
The plan is quite friendly to Ongji. No matter how hard it is domestically, as long as the balance flowing into Phoenix Bank is within a certain range, the trade value of the new currency can be stabilized, which can also help Ongji stabilize its domestic price.
Weng Jifang also basically agreed to the plan. At this stage, the main contradiction between the two parties that has not reached a signature focuses on the guaranteed price ratio.
The Ministry of Foreign Affairs hopes that the ratio is 100%, and Weng Jifang's latest negotiation ratio is 125%. There is also the matter of Phoenix Bank. They hope that the ratio will not be higher than 95%, but don't worry about them, they are not private banks.
So it came to Wang Qi's table, and it was up to him to decide whether to make concessions and how much to make as the basis for the next round of negotiations.
Laiwen has worked with Elena for several years, and has also gone through a handover period. Now he has been in charge for a while, and he has done things properly. Along with the documents, there are also statistics tables on prices and logistics scale in Wengji, and several locally produced copies. The annual tax returns for import and export trade are from an earlier era when logistics was still possible.
Wang Qi took a look at these things and could only use them as a reference. He mainly looked at Wengji's total economic scale, which was calculated by calculating per capita income and expenditure.
It’s okay if the foreign exchange settlement ratio exceeds 100%. After all, the exchange in the motion is Phoenix coins, not gold. The value of Phoenix coins itself is stable due to many factors and cannot be shaken by a few percentage points of new coins.
However, one should not be too cheap on the other party. The kingdom is self-sufficient in calories, vitamins, and industrial products. Wengji does not need to use reserves to purchase things on a large scale. The procurement to improve the quality of life can be taken care of by the private sector. Wengji’s new coins are only in the bank. Taking up only one function of the warehouse, why collect so much paper? The fire hazard will also increase.
112%, forget it if you can't sign. Our family has a small business, so even if we want to be more humble, we can't be too mean.
This was approved, and then came the more troublesome Fatal currency agreement.
King Fatal VI was too impatient and did not wait until the external shipping capacity was ramping up. A very small number of merchants who maintained a small amount of luxury goods trade through flight capabilities reported through the Border Agency that the new currency of Fatal had depreciated.
The diplomatic document states that negotiations on the Fatal currency agreement have been suspended due to the widening gap between the negotiated offer and actual purchasing power.
Fatel started to push a plan similar to Weng Ji's reserve price guarantee, but Fatel had no money...or was unwilling to give precious metals, so he could only negotiate again.
Consultations came and went, but no agreement was reached.
Anyway, it is impossible for our country to endorse the other party for no reason. They do not give precious metals and only promise a product import and export license. Does this thing require a commitment from Fatal VI?
The meaning of borders has also undergone drastic changes with the advancement of floating islands. They will all take off soon. The larger the area, the greater the proportion of border increases. This is like cutting two small circles and dozens of small circles in a large circle. The difference between circles is that their circumferences must be added to the length of the sides of the large circle. Fatal cannot complete comprehensive border management at all.
Even if everyone in the Phoenix Kingdom is a moral model and doesn't participate in illegal activities, they still can't stop people from coming over to make purchases on their own.
Therefore, their import and export licenses will have almost no impact on subsequent trade, and naturally cannot be used as a bargaining chip.
Fatel's empty-handed behavior is meaningless for advancing negotiations. As for the widening quotation gap, it is purely an excuse for the Ministry of Foreign Affairs.
Judging by his personal emotions, Wang Qi agrees with the Ministry of Foreign Affairs' approach and cannot be used to it.
But in fact, if the negotiations with Ongji are completed first and there is no push here, other problems may arise.
Wang Qi held his chin and stared at the document for a long time before writing an instruction: "Cancel the insured price and follow the market fluctuations."
What this means is that the bank will decide how many new Fartel coins can be exchanged for one Phoenix coin. The difference is that the bank will consider the risk of depreciation and deliberately increase the exchange ratio to push away customers with exchange needs.
But from Fatel's point of view, at least the banks recognized that their banknotes could buy things.
I don’t know if we can talk about it. The other party is not sincere anyway, so we can just sign a few scraps of paper so that the Sixth World can go through with dignity.
