Reference no: EM132838790

Preface This document contains the information that you as a negotiator will need for the conference. It describes the scoring system, security, and goals of Kanistan for each area. Scoring You are to represent Kanistan in the negotiations over the disputed zone. Naturally, the government of Kanistan expects you to do the best you can for the citizens. To assist you in meeting the desires of the citizens, the government has designed a point system that indicates the value of the issues as accurately as they can be estimated. Your goal is to maximize the total number of points for the whole negotiations. Security The following Area discussions are divided into three sections: Descriptions, Goals, and Intelligence. Descriptions: All descriptions are common knowledge. Goals: All goal sections are TOP SECRET. These are the intentions and priorities of Kanistan. They also provide additional information which is not available or known to Monrovia. Intelligence: These sections are the result of espionage which has been conducted. Information about Monrovia is presented that may be useful during negotiations. NOTE: The disclosure of TOP SECRET information is left to your discretion during the negotiations. Area I Description: This is a choice area for food production, forest product resources and it is a potential source of bauxite (aluminum ore). The area is 50 miles wide and approximately 90 miles long. Goal: Ownership of this area can help overcome several major problems faced by Kanistan, which include insufficient food for Kanistans, a balance of payments deficit, and a diminishing supply of pulpwood for its paper mills. In addition, it could provide a source of raw material for the country's developing industrial base. In four of the last twelve years there have been severe food shortages, resulting in thousands of cases of rickets and anemia in preschool-age children. Naturally the solution to this problem is a high priority for Kanistan. The second problem is the balance of payments deficit. Because of the recent food shortages Kanistan has run up a large deficit, and its credit rating is quite poor in the worldwide monetary market. It is crucial that Kanistan overcomes this deficit by developing an export business. The townships in the central part of Area I are particularly well suited to wheat production (although wheat can be grown successfully anywhere in the valley). Wheat is central in KANISTAN: TOP SECRET Monrovia vs. Kanistan - War or Peace? 2 by Gary Whitney & Ron Shay the diet of Kanistans. Other food crops can be grown at various places throughout the area. It is very important to obtain as much land as possible to alleviate the threat of disease to Kanistan children. Kanistan is well known for its quality fruit preserves which it exports when Area I is in its possession. Export of these preserves brings in substantial revenue and adds immensely to the prestige of the country. Much of Area I is ideally suited for the highly profitable cultivation of strawberries, peaches and various berries necessary for the production of preserves. As a result of uncontrolled logging 50 years earlier, Kanistan's own forests are presently being consumed faster than trees are being replaced. If you can gain control of most of the forest land in Area I, a steady supply of wood pulp can be obtained. This will keep the paper mills running while the traditional sources of pulpwood within the established border replenish themselves. Without a sufficient supply of pulpwood, the paper mills will close down and over 5000 employees will be laid off. The Ministry of Agriculture and Natural Resources has assigned a point value to each of the townships to indicate the relative value of each in solving Kanistan's problems. These are indicated in the TOP SECRET map. The Ministry estimates that if you gain control of any combination of townships worth 140 to 160 of the 248 points, then Kanistan will be free of food shortages, will be able to export preserves, and will have sufficient pulpwood. Based on these estimates the Prime Minister has instructed you to try to obtain the maximum number of points you can for your country. Intelligence: Because of the highly productive and useful nature of Area I, you can expect Monrovia to also be very interested in it, or at least very resistant to the idea of giving up all or part of this area. Area II Description: This is a very arid region which, until recently, was largely unknown. Because of the remoteness of this region little development has taken place. The area is 50 miles wide and 90 miles long. Ten years ago Cordan erected Steeltown about 25 miles outside this region. Cordan has never made any move to take over the region and remains friendly to both Kanistan and Monrovia. Goal: Kanistan has been put in a very difficult position in recent years. The need for steel has been acute for the past ten years. Production of machine tools, trucks, heavy equipment for construction, and defence weapons have all depended on a steady supply of raw steel into Skill City, 50 miles south of Area II. Since the erection of Steeltown in Cordan, Kanistan has traded vigorously for the steel produced. This has been marginally satisfactory in the past but it presents Kanistan with two problems: irregularity of delivery and a balance of payments deficit with Cordan. Historically, approximately 10% of the steel orders from Steeltown have arrived more than three months late. This occurs because Steeltown is operating over capacity, resulting in frequent breakdowns. KANISTAN: TOP SECRET Monrovia vs. Kanistan - War or Peace? 3 by Gary Whitney & Ron Shay The trade with Cordan has been secured primarily through the mining of a small coal deposit southeast of Skill City, about 75 miles from Steeltown. Coal is sold to Steeltown from this deposit at $5.00 per ton and steel is purchased for $25.00 per ton. This has caused a serious balance of payments problem and the rapid depletion of this small coal deposit. It is estimated by the Ministry of Agriculture and Natural Resources that at current rates of mining, this deposit will be depleted within two years. Consequently, an intensive search was made for a new coal deposit. An extremely large deposit was located. However, it is 100 miles north of Skill City, right on the border of Monrovia. Knowledge of this deposit has been kept TOP SECRET and it is known that Monrovia is NOT aware of this important resource. If this deposit could be obtained, trade with Cordan would continue and the balance of payments problem could be resolved. Kanistan has long desired to produce its own steel, but it has not had all the necessary factors of production. It does have an iron ore deposit 700 miles south (not on the map) but it can not exploit it because the iron ore and coal must be within 150 miles of each other to be economically useful. The Ministry of Industry advises that Kanistan has the technical skills to build a steel mill, but that there are not enough skilled steel workers to fill all the positions required to operate the mill. The Ministry of Industry found it is impossible to anticipate all the solutions that your negotiation team might devise. So to help you weigh the issues in Area II, the Ministry advises that: 1. A solution that almost certainly will provide for the delivery of high quality steel for the long run (20 years) is worth 100 points. 2. A solution that probably will provide long-term delivery of high quality steel is worth 70 points. 3. A solution that reduces the deficit with Cordan is worth 40 points. 4. No solution is worth zero points. Intelligence: The goals and priorities of Monrovia are not known. However, it is known that Monrovia receives at least some of its steel from Cordan. It is also estimated that steel is important to the welfare of Monrovia, as it is with most developing countries.

Question 1. What are the Key Issues of Area 1 and Area 2?

Question 2. What are the Benchmarks?

Question 3. WHAT STRATEGIES SHOULD BE USED IN NEGOTIATING?

Question 4. what are the tactics to be used to get the offer?