To:	CEO, Auroro Unuigxo (Auroro Companies United) The Kingdom of Elafites and Zufites
From:	Frankel Jurst, Director of Infrastructure and Services, The United Democratic Republic of Utania.

September 5th, 300 AP.

CONFIDENTIAL - KONFIDENCA

Dear Sir/Madam,

Apologies for the late reply, but the President has been busily trying to campaign for an election win for his party in Utania's elections. However, we have discussed at length your proposal and have agreed, in principle, to the sale, but there remain significant obstacles in the immediate future.

The President's policy is to privatise all government-owned companies, including Aij Utani. However, as I am sure you can appreciate, we cannot act without a parliament convened. Not that we require, necessarily, their approval, but because politically it would be unwise for us to progress without parliament sitting. Parliament is currently dissolved awaiting the end-of-month election. Therefore, we do not believe we can finalise the sale until that time.

We are also uncertain as to whether a new parliament will accept a 60% sale. However, this is not your concern. We shall continue assuming all shall go our way.

Aij Utani is currently looking to expand its fleet to handle a greater number of international flights (there is currently only four routes, and three of those are to neighbouring countries). A joint venture with Auroro Unuigxo's airline would provide great synergy, allowing an expanding airline without the excessive costs of doing so. This is very much in line with Presidential policy: expanded services at minimal cost.

In the meantime, there is no reason we cannot agree on the finer details of the sale, such as the sale price. You have suggested a controlling percentage of the company without specifying full ownership, and without knowing the company valuation? We shall immediately request an independent valuation, and present you with the final amount. However, estimates to date are that the company is worth Û6 billion. Is Auroro Unuigxo able to finance this purchase?

We shall commence with the independent valuation, and will be in touch. We welcome any further thoughts.

<Tech> Risto, well done! This is precisely the sort of thing I have wanted to get going in Vexillium. There's been very little of this happening. I'm also keen on mutual advertising: "you advertise the branch of your company on my site, and I'll do the same on yours" -type of thing. I've also wanted to see more international companies form, and Auroro Unuigxo's approach is exactly the right thing. Afterall, it's not like there's really a currency in Vexillium, so the real trading must be in the form of bartering: you buy my company and I'll buy yours; you advertise on my site, I'll advertise on yours. I'm actually keen to establish an international trade database, in which everyone's trade with eachother is documented, so that deals like ours can be written in, and so trade sanctions can actually have an impact. Having said that, I would like to develop economic models for all the Vexillium nations, too, so that trade sanctions can have an appreciable effect. But that's once I figure out Utania's model, which I'm working on, slowly. Thoughts? In Utania, as you'll no doubt be aware, there's a long-running election campaign going on. Have you voted? (Little advertising plug there... heh heh.) In it, the moderate-leftists (PPP and USP) would be against the sale, but the Conservatives, President Hope being one, are 100% in favour. Whoever wins the election will elect the new acting-President (Pres' elections are not until next year). So, in Frankel Jurst's reply, he's just playing the politics. Don't worry, I am all in favour of this. Though, if the PPP-USP win, I have no idea how I am going to make the sale go ahead - I guess the Conservatives could go ahead with it before the election is finalised. Care to be dragged into an internal scandal? Could be interesting. :-) The sale does raise a question in my mind, Auroro Unuigxo must be huge in EKZ to afford the ChC 1.3 billion price for Aij Utani, no? What did they make their money from? Enough of my rambling. As I suggested earlier, I'd be keen to make this a reciprocal arrangement, and for our agreement to be a "watershed" deal, one that makes the future in Vexillium! </Tech>

We eagarly await your reply.

Peace be with you.

Frankel Jurst,
Director of Infrastructure and Services,
Office of the President,
UDR of Utania.