K(alistani) R(epublic): Kanjor's government expropriated a significant amount of Kalistani national assets last year. What is the Government's position on this?
M(oses) A(llen): The President's position, and the Policy of the Foreign Affairs Ministry is that the expropriation was well within the rights of the Government of Kanjor, and we do not mean to diminish the rights of a sovereign state to nationalize foreign owned property. But the model Kalistan has used has been nationalization with compensation. We seek to ensure that our investors do not make investments which will fail due to the nationalist policies of a foreign Government. If the contracts that our investors signed will not be protected by a nationalist Government, we have less of an incentive to invest in Kanjor.
KR: What sort of compensation model did the Foreign Minister have in mind?
MA: What Kalistan has done when we nationalized, and what we have recently proposed to Kazulia, was that if a country is going to nationalize, they should pay the value of the expropriated assets in the form of 10 year bonds, to the holders of the paper. In our case, Kalistan can directly compensate Kalistani investors, and then the Kanjor bonds would be issued to the Government of Kalistan. This scheme would certainly restore faith in the efforts of the Government of Kanjor to regain control of their national economy, and would ensure that our investors won't take a beating. After all, just as Kanjor's interests lie in developing the Kanjor economy, our interests lie in developing and protecting our economy.
KR: And if they balk at compensation?
MA: We will get our money one way or another. The Socialist Party is going to put forward a resolution to ensure that our investors are made whole, and we will include a provision in the resolution which will ensure that punitive measures against Kanjor's interests are taken if they opt not to compensate us. We are aware of Kanjori deposits in our bank which can be confiscated to make up a portion of the compensation, and in addition, we sell Kanjor oil. Cutting off sales of oil and other Kalistani exports to them will allow us to redirect those sales to other nations, and when enough economic damage has been done to Kanjor through an embargo to make up for the loss, we'll talk to them about reopening trade. One way or another, this will not be a net gain of 65 million Kalistani Rubles to Kanjor. Our goal is to ensure that it is a net gain of zero to both sides, however we accomplish this.
KR: Is this how much Kalistani investment has been confiscated?
MA: One estimate has it at around 65 million, while we have seen figures that put it upwards of 100 million, though we think those estimates are quite liberal. The value of Kalistani investments in Kanjor is difficult to know for sure, due to the many ways that investments are spread around and broken up and reformed these days. But we are confident that Kanjor wants to avoid any sort of punitive measures, and we also wish to amicably resolve the matter, while still conceding to their right to expropriate.
KR: Thank you Comrade Minister.
MA: Have a good day.
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