Kalistani Major History

[Doc]

Kalistan to Ink Investment deals with Endralon
Several Joint Venture and Licensing deals now in the final stages of Negotiation
Kaliburg, Ananto
Feb 3, 4887


Foreign Minister Mosswell briefs reporters on the new Kalistani joint deals with Endralonian Capitalists

Foreign Minister Sharice Mosswell and Trade Minister Michelle Martinez met with representatives of 4 major Endralonian firms in Kaliburg last week. The capitalists were in the Capital to discuss investment opportunities in Kalistan, and the Socialist Government was able to negotiate favorable terms for the Republic which will dramatically expand Endralonian investment in The Republic.

"We met with CEOs from four companies," said Mosswell in a press brief following the successful conclusion to the meetings. "We met with Eight Continents Airlines, Lievenian Trade Group, Buy and Use Corporation, and The Fashion Company. We also met with Sárközy Hotels briefly at the beginning of the week. Our goal in the talks was to encourage the Endralonians to invest in Kalistan, and of course, their mission was to secure business in the Republic. Of course, this relationship makes sense, given our geographical proximity, and will provide benefits for both the Endralonian capitalists, and the people of the Republic."

Details of the deals with four of the five countries (the proposal of Sárközy Hotels was dismissed out of hand as not workable, due to the Government's policy on real estate in the Republic,) were delivered in a white paper from the Trade Ministry.

1. Eight Continents Airlines will begin flying directly to and from Kaliburg, offering service to places that KalAir does not fly. The relationship is meant to compliment each other and make Kaliburg a destination for transit for people flying to and from Endralon, and allows Kalistani travelers to tap directly into ECA's extensive transit network. There is also the possibility of ECA taking over air freight operations from KalAir in the future, so the major airline in Kalistan can focus on passenger service. ECA carriers will be licensed to fly in and out of Kalistan and will be subject to normal customs restrictions as well as preferential gating fees at Kaliburg International Airport.

2. LTG Music, will be formed as a jointly owned venture between various Kalistani investors and Lievenian Trade Group, which is a major media conglomerate in Endralon. Already, the deal has attracted the interest of Kalistan's oldest record company, KMI, who has offered to put up Kalistan's majority stake in the firm. LTG music will gain a foothold in Kalistan as the premier provider of Satellite and on Demand music services, as a new option for music and news listeners who would like an alternative to terrestrial radio. KRTVN spokespeople have welcomed the deal, saying that the two services can complement one another: Since the charter for KRTVN is rather rigid with regard to formats that it can provide, and cannot provide on-demand service in any fashion, the new player in the Satellite and On Demand sectors will increase consumer choice and satisfaction. For its part, KMI executives have pointed out that the deal to found the joint corporation does not privilege any provider's content and does not give KMI an advantage over its competition, primarily ARC or LTD records. The deal is intended to be content neutral, which KMI believes will nonetheless provide it ample return on investment.

3. B&U Greenways- This new Joint venture between Buy and Use Corporation and Kalistani Organic Grocery chain Greenway aims to expand the offering of premium health food and specialty food in the Kalistani Market. Greenway, a small grocery store, has served a local clientele in Luxon, Xanadu and Dahriel for years, but with ample capital investment, has languished in its attempts to expand much outside of these markets. B&U's merger with Greenway not only provides Endralon a foothold in the specialty food market in Kalistan, but also provides Greenway with enough capital to begin expanding its franchise into new markets on the Mainland. Greenway usually caters to the tastes of yuppies who seem to believe that there is something special about artisan coffee beans, or that 12 grain bread is somehow more healthy for you than 9 Grain bread, but market research shows that there is a large number of these people who are not being served by traditional grocers, especially on the mainland, and B&U Greenway now stands in an excellent position to exploit the peculiar tastes of the middle class.

4. DTC- A fully owned subsidiary of the Endralonian Fashion Company, Dudás Textile Corporation has received the license to sell high end and haute couture fashion in Kalistan. The concession is relatively small compared to the other deals, but allows Kalistanis who value fashion to now supply their own demands. DTC represents the first fashion house materials to be offered in Kalistan, and at the moment, can only be acquired made to order by individual consumers. It is the hope of the Trade Minister that the introduction of high fashion to the Republic will inspire Kalistani designers themselves to begin to create fashion as well, for less select markets. "Let's face it: Normal Kalistani Daily wear is a Tour T Shirt from their favorite band, and cargo surf shorts. And it has been for centuries. I mean, its what I am wearing currently. Its very functional, but perhaps if the people see something different, maybe they will start to want to vary their own styles and then who knows. Maybe they will want to dress up when they go out to dinner, instead of just leaving formal attire to the politicians and famous people? Anything is possible."

These developments signify positive developments for Kalistani consumers and the expansion of the Dual Economy. All four firms fall into the Private Sector, and therefore no special Government investment is needed. Of course, at both the joint firms, Kalistani Labor and salary laws, as well as all environmental regulations will be enforced. But the expansion of consumer choice, possible now that the Public Sector is rebuilt, has become a priority of the Government of the Republic, and is sure to be met with a cheer from the Kalistani consumer, who will see his standard of living increase without much of a corresponding cost of living increase at all.

Final details of these deals are expected to be concluded in coming weeks, as trade representatives from Kalistan return to Endralon with the Capitalists.