Quote:An update on the progress made by the Kalistani Economy.  Over time, we have begun resuming trade with our neighbors and other nations across the world.  Kalistani Exports are currently at about 92% of 3926 levels.  Exports of petroleum products and recreational chemicals leads the way, at 108% and 103% respectively over 3926 levels, but exports of consumer goods and textiles have not fully recovered.  In all, we expect that due to the assassination of President Bjorksdattir and the Embargo, we should be able to prevent a full 'lost decade' for Kalistani exports.  Economists have determined that the recession which began in 3927 ended in the first quarter of 3931, as export losses were offset by a robust domestic consumer market in most consumer and durable goods sector.  The news of recovered economic exports comes as a crucial second piece of the puzzle which signals growth in the coming years.  We still maintain an embargo on all goods from Vanuku, but we also have positive signals coming in through the Foreign Ministry with regard to other countries that we lost contact with during the Embargo.  As long as we continue to walk the Fine Line between Nationalist Isolation and a militantly aggressive foreign policy, Kalistan's economic growth seems predictable.  We maintain our assets designed to ensure Kalistan's National Security, and remain prepared to discuss compensation, though the current Compensation Law sunsets in a year and a half and no Nation has applied to date.  We shall see.

We also need to announce the imminent collapse of the official structure of our Legislative Partners and current Majority Party, the Revolutionary Freedom Party.  The Opposition Leader is therefore advancing a new Government Bill based on Presidential Prerogative which aims at protecting the positions of RFP Ministers while our political allies undergo political and internal reorganization.  Though the Revolutionary Freedom Party will go defunct within a half a year, this doesn't mean that RFP voters will lose their representation in the Assembly.  The Cabinet Bill allows RFP Ministers to maintain their Seats in Government, and will be allowed to maintain dual affiliation, and serve as SP in Name Only, until the RFP's reorganization is complete.  We also will allow RFP Assembly Members to maintain adherence to their own Party's Platform while serving under the Socialist Party banner.  We therefore will welcome the RFP constituency into the Socialist Party on a temporary basis, and when the RFP is reorganized, we will happily release the seats back to our Comrades.

Bright days are ahead for Kalistan.  We may soon have the opportunity to begin traveling abroad officially once more.  We will keep you all posted on developments.  We wish all Peace and Prosperity.

SP Leader Hillary Clark-Reid Wrote:We have called for special elections this year.  The anticipated structural demise of the Revolutionary Freedom Party has taken place, and we have been constitutionally required to temporarily eject former RFP Assembly members from the Chamber due to their lack of Party status.  However, with special elections, we have arranged measures to ensure that RFP's Assembly members will be reseated in about one month, under Socialist Party temporary membership.  They are still free to caucus with themselves, and their special status will be reflected in the reseating of their Cabinet members as SP members in Name Only.  We have a long standing history with the RFP, and we seek to ensure that RFP's voters will maintain their representation in Government, even while their Party formally restructures.

Foreign Minister Victor-Omar Donner-Carrangus Wrote:We are satisfied that the perpetrators of the murder of our former President Bjorksdattir have been caught and are being tried in Vanuku.  The primary Party guilty for this dastardly action is an officer of the Vanuku Naval Staff, who acted outside of official Vanuku Government Policy, organized a small secret force to carry out the deed, and then hid in plain site in Vanuku.  My Vanukean counterpart handed me the details of the arrest and trial, and we are satisfied that the Vanukeans have handled the matter in a manner commensurate with their law.

We therefore have advised the Prime Minister to lift all current sanctions on Vanuku and its allies across the globe.  We encourage the development of positive relations with Vanuku and its allies, and happily herald the end of sanctions.  To mark the occasion, the Socialist Party are prepared to negotiate a limited economic settlement with Vanukean merchants for the material and shipping quarantined during the Embargo, as a signal of good faith.  We are now prepared to re-engage the world economically and diplomatically, and resume our proper place at the forefront of the respected nations of the world.

Quote:Today, Kalistan takes the "Fine Line" to the next natural step by authorizing the creation of the Kalistani Auxiliary Navy.  The Navy will eventually commission not more than 95 vessels, of which may contain no more than 5 diesel submarines, no more than 15 destroyer-class ships, no more than 6 frigate-class ships, no more than 1 missile cruiser, and no more than 20 support and training vessels.  The remainder of the Auxiliary Navy will be formed of private merchant ships which will be outfitted and armed with surplus Kalistani materiel.  While not nationalized, the Auxiliary Navy is authorized to seek service with any sovereign Nation, public agency or private organization, with the exception of any religious entity or for-profit capitalist business venture.  The command and control structure of the Auxiliary Navy will remain in non-nationalized control unless the Auxiliary Navy is nationalized in a period of National crisis.  The Auxiliary Navy shall be supplied from Kalistani munitions and logistics supply, for which they will be required to make requisition, and will pay income taxes on all salaries supplied by non-Kalistani sources.  Meanwhile, the Auxiliary Navy will have the full authorization of the Kalistani Government to negotiate all salaries for services rendered to foreign Nations, and all contracts made with the Auxiliary Naval Force will be deemed binding under Kalistani Law.  The primary zone of operation of the Kalistani Auxiliary Navy will consist of the Anantanese Ocean, but the Auxiliary Navy is authorized to sail under the flag of their employer when operating outside the Anantanese Ocean, or their own unit colors, by their own discretion.

Quote:Greetings in the Name of the Most High
An Officer of the Trigunian Imperial Navy raised some interesting questions about the Kalistani Auxiliary Navy, which we think needs some clarification.
First:  Let me be clear, we are only actually building 26 new ships in total.  The vast majority of the ships being commissioned into the Kalistani Auxiliary Navy are repurposed vessels, either from Kalistani National Dry Docks or from the Private Sector.  The capital ships are our primary focus.  The supply and logistics ships are taken from surplus and dry docks, and the remainder, the LAFA-class ships are motorized fishing and leisure vessels which are armed, repurposed and refitted for crews of 6-10 per ship. Consequently, this is not a massive new ship project, but the 95 number is the total number of ships which will be listed in the Kalistani Auxiliary Navy.  Most of those already exist and are being brought into service in the KAN. 
Secondly: This is not the creation of the Socialist Party-  It is an official program of the Kalistani Government and is not affiliated with the Socialist Party Militia.  We invite other governments to look over the commission bill [Click This Link for the text of the bil. -ed.]  So yes, to answer the charge, this is a National Navy, but it is under private control, and is commanded and controlled separately from the Kalistani National Navy.  Furthermore, while not in the Anantanese Ocean, the Navy flies either their own Unit Colors or the colors of their employer.  The only time the Kalistani Auxiliary Navy flies Kalistani Colors is when they transit through the Anantanese Ocean, or when they are called into National Service.  The purpose of the creation of the KAN is that during the Embargo, Kalistan quickly learned that the existing status quo at Sea was not supportive of Kalistani interests over all others.  The KAN is a first step in creating a new Status Quo in the Anantanese Ocean and around the globe.  Kalistan aims to move into a position where it can effectively promote its interests and at the same time stand as equals with even the great powers of the world. 
Thirdly:  Let me answer the question of funding.  Kalistan recently passed a progressive income tax in Kalistan, which yields 620 Billion Kalistani Rubles.  Our tax income does not include money made on legal and illicit sales of drugs abroad by Kalistani ODEN.  The formation of the Kalistani Auxiliary Navy is funded by the 74 billion Ruble increase in the Defense Budget, as well as significant sums of money included by ODEN and the Socialist Party.  But the majority of the armament and ship building comes from a 10 year bond on the public capital funds in the Defense Ministry Budget, as well as contributions from Industry and Trade, Foreign Affairs, and  Infrastructure and Transport.  The sum total of capital building expressed in the Kalistani Auxiliary Navy is capped at 56 Billion Kalistani Rubles over 10 years, which the Kalistani Economy is more than able to fund adequately, given the current state of Kalistani finances-  We could easily fund it entirely outside of our National Budget Surplus.
Fourthly:  Much of the ongoing operating cost for the Kalistani Auxiliary Navy will be covered by those who employ the fleet-  The Kalistani State is only on the hook for food, fuel and ammunition, all of which are supplied by our National sector.  This includes sovereign nations-  even Trigunia could potentially lease the Auxiliary Navy for their own uses.  The Kalistani Auxiliary Navy is under their own command at peace time, and will not harass any shipping on their own initiative.  Therefore, the Auxiliary Navy should not be seen as a threat to neutral shipping while they sail for Kalistan, and while they do not sail for Kalistan, their employer bears the liability for their action, just as they would if Kalistan sold them weapons which they then subsequently used in war.
Fifthly and Lastly:  This force is not enough to make a serious threat against any standing navy in the world-  Modern Navies have aircraft carriers, nuclear submarines, and cruise missile frigates coming out their ears!  This naval construction consists of no air assets whatsoever, and the bulk of the Naval fleet consists of single engine Light Armed Fast Attack craft.  The Kalistani Auxiliary Navy's chief strength comes in high mobility backed by fairly serious surface based firepower.  It is pretty hilarious for a full Admiral to issue comments aboard a floating airbase, surrounded by about twice the firepower of the entire Kalistani Auxiliary Navy, and powered by a mobile nuclear reactor to express concern about the creation of the Kalistani Auxiliary Navy.  But If this is how the Admiral gets in the papers, we would like to express to him personally our thanks for the levity that his words brought to our day.  We wish the Admiral well, and would like to invite his command to visit Kalistan and observe how to create a navy on the cheap.

Quote:We hope to return to our unfinished business in the legislature.  When our governing partners began to experience organizational problems, we had started rewriting our Cultural Guidelines and working toward the adoption of a formal constitution.  Now that the RFP are reorganized and are competing successfully in elections, we hope to resume that work.  Additionally, we are watching developments in Cildania.  They are partners in ODEN, and their country is currently experiencing major unrest.  Kalistan will work to be of assistance to the legitimate government of Cildania in protecting ODEN assets and interests, to include, should they need it, offering them the services of a portion of the Kalistani Auxiliary Navy.  Furthermore, we would like to acknowledge the growth, over the last decade and a half of the Society of Brethren in Kalistan.  Kalistan is now home to more than 2 million members of the Society, and consequently, we will keep attempting to build connections with other communities across the globe in association with the BGC HQ in Kaliburg.  And finally, we would like to announce the formation of the new Kalistan Republican Security Bureau.  To date, foreign intelligence has been collected by individual agents, either working alone or in small teams, under the direction of the Kalistani Foreign Ministry.  With the formation of the KRSB, Kalistan will finally have a modern, accountable, and most importantly, professional intelligence gathering apparatus which will put our nation on par with the most powerful states on the Planet.

We look forward to the changes to come in a Socialist Administration.  And we welcome incoming President if the Republic, from the Revolutionary Freedom Party, Jean-Allian Toussainte-Ananto.  We will be happy to work closely with the President of the Republic in promoting the interests of the Kalistani Republic. 

We also wish to take a moment to thank President Benito-Gonzales for his years of service as President of the Republic.  Given his retirement from National office, we furthermore name former President Benito as Governor of Ananto District, and name Helen Bennots as Governor of of Neveras District. 

Quote:"We have enjoyed unparalleled prosperity and peace over the last generation.  We have been able to end duplicate government agencies and have operated on the Republican level with a skeleton crew.  Our culture and people have thrived during this period under District control, and our economy has enjoyed the longest period of uninterrupted prosperity in the last few centuries.  However, new global threats require a more coordinated effort on the part of the entire Republic.  To this end, we reconvene the National Assembly of the Imperial Republic of Kalistan.  We have called for a new Government and have called for new Presidential elections.  In addition, the Socialist Party of Kalistan has recalled the Kalistani Auxiliary Navy, which has not called Kaliburg its home port in more than three decades.  The Kalistani Auxiliary Navy will be refit and aggrandized with new technology which will allow it to continue to serve the needs of the Republic and its allies without directly involving Kalistani Armed forces."