In Emerald City, the capital of the Air Nomad Kingdom of Kanto, the Prime Minister was having a closed door session with his cabinet members. Ordinarily they would have an open session in which anyone may come in, take a seat and listen to everything that they talked about until the meeting is adjourned. Such transparency in the affairs of state is truly an original idea, in a world where despotism and ignorance of such matters amongst the masses are the norm.
But now, Kanto is arriving into a new age with an exotic idea called democracy. It is hoped that with government transparency - to a certain extent and within a wider system of checks and balances - the Air Nomads culture would accommodate pluralism, and more liberal ideas and political thought. When Parliament first opened its doors to the public, the room was filled with curious onlookers to see the politicians who represented them. Curiosity brought them in, the details that were discussed intrigued them, what won their hearts was the politicians' willing eagerness to talk them.
But this time was exceptional.
"Our diplomatic envoys, businessmen, and industrial observers have reported that the Fire Nation are showing a keen interest in changing their energy policy," began the Minister of Foreign Relations. "They have increased production of petroleum engines, converting their ships of war and merchant marine vessels from coal fire engines to petroleum. And their government have increased tax incentives for their major oil companies to step up oil exploration and development, and building new oil refineries."
"These...explorations and development, could you put them in more layman terms?" asked the Prime Minister.
"Exploration in terms of searching new oil deposits that are found under the ground. These deposits are referred as oil fields. When they find an oil field, they develop it by drilling into the ground until they literally, "strike", the oil. Then they extract it and then transport to a refining facility where they process, and breakdown the crude oil into various chemicals that they use."
"The oil industry is still a relatively new industry in the Fire Nation," interjected the Minister of Labor and Industry, "as it offers an alternative energy source to coal. Oil, when refined into kerosene or petroleum, is cheaper, burns cleaner, and more convenient than coal. One just just needs to pour it into a machine, there would be no more need to hire an extra person to shovel coal into a burning stove. Nor do you need an experienced hand to stoke the flames to properly and safely heat a boiler engine."
"My department and General Staff are especially excited about this new technology," added the Minister of War. "The Air Corps especially. They have chosen to build smaller and more nimble aircraft, than the bulky and slow war balloons. We are so confident about it that we have cancelled our order on the war balloons from the Fire Nation."
The Prime Minister nodded his head in acknowledgement, that would free up thousands of sovereigns that would otherwise would have been a bad investment. "Where is the Fire Nation exploring for these new oil fields?"
"They're mainly searching in their home country. But they also have interest in Kanto," said the Foreign Minister.
"Kanto? Where exactly?"
"The Adachi Plains mainly. But they have also discovered vast oil fields in the Great Desert."
"How much?"
"They believe that just one of them would enough to last them for over a hundred and fifty years."
The prime minister leaned back in his seat with a surprised look on his face. The other ministers were just as surprised, except for the War Minister.
"Thanks to the close coordination between our two departments," said the Minister of War, motioning to the foreign minister, "and in coordination with the Kazekage, our businessmen, and tradesmen, we have already have begun to move on this new technology. With the cooperation of the Ministry of Labor and Industry, and the university, we may be able to reverse engineer, and start building our own petrol engines. But our priority must be to find a way to secure the oil fields, which will become a strategic resource."
"How does the Fire Nation intend to secure the oil fields?" asked the Prime Minister.
"They will do so through their four major oil companies that operate across the world. These companies are the four giants that dominate the oil industry. Akagi Industrial Group, Soryu Oil, Kaga Oil, and Hiryu Heavy Industries," replied the Minister of Labor and Industries.
"Only four?"
"There are two others, Zuiho Enterprises and Hosho & Sons. They are being edged out by their four larger competitors. Recently they have agreed to a merger to make them into one big company. But they've become desperate and are placing their hopes in developing the Great Desert. So much so that they have hired mercenaries to protect their interests from marauding bands of Sandbenders. Since the only way for the company to start drilling for oil, they trespassed on the Sandbenders' lands."
The Prime Minister gave the War Minister and the Foreign Minister a hard look. "What is the current situation in that regard?"
"The Sandbenders," the foreign minister interjected, "as well as Zuiho and Hosho want us to intervene on their behalf. The Sandbenders want the company men out, and the oil company wants us to protect their commercial interests. Either way they want the same thing. They both want the oil fields."
"So what do they want from us?"
"They want to send us troops and kill the other," the War Minister said bluntly. "Blood for oil."
"And we have to consider the Fire Nation's ambitions in the region," the Prime Minister thought aloud, "but the Great Desert is also claimed by the Earth Kingdom. If foreign troops should be...stationed there. It would inevitably lead to conflict with the Earth Kingdom."
"We already have many grievances with the Earth Kingdom, why should this be any different?" asked the War Minister impatiently.
"The so-called rhetoric from Ba Sing Se, have become more radical, even disturbing," replied the Foreign Minister. "Many of them sound like nutcases, but they have become more influential amongst the masses. Our ambassadors in Ba Sing Se are getting nowhere with their Foreign Minister. It seems as though they are stalling."
"Then by your omission the Earth Kingdom is looking for an excuse to invade us," replied the War Minister in a single breath. "The Kazekage have reported that they have doubled their military activity. They have sent an army group towards the colonies."
"Then we must tread carefully, if we start mobilizing our troops, the Earth Kingdom may see it as an act of war."
"How so?" asked the Finance Minister.
"Earth King Kuei's Chief Minister Li Su, had said that they will not tolerate a divided Earth Kingdom," replied the Prime Minister. "Given the circumstances, I believe that promoting a peaceful settlement would be the most prudent move for right now. If that fails and the fighting continues, it may later give us reason to petition ANCO to impose sanctions against Zuiho and Hosho."
"What if the oil company ask the Fire Lord to intervene on their behalf?"
"They will, but the other companies are too powerful and will block them," answered the Minister of L&I. "The Four Giants will not pass up an opportunity to dispose of a business rival. Once that happens, Zuiho and Hosho will be forced to file for bankruptcy. That would allow us to quietly takeover the company without any complaints. Once we take over the company, it would give us leverage to negotiate with the Sandbenders to reach a compromise. And the Fire Nation and the Earth Kingdom will be powerless to stop us."
"Are there any other risks?" asked the Prime Minister.
"No. Zuiho and Hosho are engaging in a high risk strategy that has little chance of success. Even if they do succeed, they will have little to show for it, as the Four Giants will simply brush them aside when the fighting is over."
"And the Sandbenders will be glad to have us," added the Foreign Minister, "since they have no love for the Earth Kingdom, and they truly believe in our doctrine of self-determination. A doctrine that we should make as the centerpiece of our foreign policy."
The Prime Minister reflected on the new information. What they were discussing is devious and unprecedented. If their conspiracy succeeds, Kanto would have access to a vast, and hopefully, unlimited oil supply. And they will have a state-owned enterprise that would give them a great deal of latitude to seize other strategic resources. Having access to raw resources is vital for Kanto's interests.
"Very well then. Officially we shall wait and see what happens in the Great Desert. Unofficially, we shall take proactive steps to address, 'unforeseen and unusual developments,' as they come up," said the Prime Minister before getting up to end the closed door session.
In the Fire Nation.
Fire Lord Zuko was sitting at a ceremonial tea room. He decided to pick a more relaxed setting, hoping that it would give some peace of mind. No one wanted to admit, but the peace accords was slowly being torn apart, in which in Zuko's mind, was mostly done by the conniving Air Nomads. He tolerated their eagerness to trade with the Fire Nation, allowing them to invite Fire Nation citizens and companies to continue to live, work, and invest in the colonies. But what him uneasy was that the Air Nomads have been buying his country's army surplus. But nonetheless, his country benefited the most from this arrangement, without breaking any of his promises. And his foreign policies towards the Air Nomad countries - who have generously cooperated with him - have served him well in silencing some of his critics. And the recent financial crisis in the Air Nomad countries have left the Fire Nation unscathed, thanks to the timely intervention of the Central Bank of the Fire Nation. A powerful legacy from his grandfather, Azulon.
However, it does not remove the other thorny issues that Zuko has to deal with. One of which is the Peace Accords that he was once proud of. In which he now regret his overzealousness to achieving world peace. The terms of the treaty immediately became controversial in the Fire Nation, as it provoked condemnation from the nobility who support the Fire Lord. In addition, high ranking officers of the Imperial High Command resigned in protest. And ultranationalists, mostly made up of war veterans and students, have banded together and have engaged in mass demonstrations, in protest of what is now called the unfair treaty. There have also been numerous assassinations attempts on Zuko's life, which did not attract as much sympathy for him as one would have expected. Since in their minds, the peace accords were nothing short of complete, and utter humiliation to the Fire Nation.
And the worst part - Zuko had done it willing.
For Zuko's part, he had agreed that the Fire Nation pay war reparations, that are so high that it would hinder their economy for decades to come. The army was reduced from six hundred thousand strong to only a hundred thousand. The navy was to be dismantled or parceled out to the Earth Kingdom and the Water Tribes. Which also included their entire Air Corps and their prized tank battalions. Most alarming of all was Zuko's willingness to remove the colonists from their settlements in the Earth Kingdom - by force if necessary. Furthermore, the details were vague as to what will happen the Earth People, and the Air Nomad communities, when the Fire Nation pull out for good - which has caused ire from the Air Nomad countries. The Peace Accords not only defanged the Fire Nation, but it would also overburden an economy that had already ran up huge deficits from the war effort. People will be out of work and homeless. The Fire Nation economy would be set back by as much as four generations.
Yet the the nobles of the Fire Nation still believe that Zuko may be persuaded to reverse some of his policies. One of them is a man named Sun Tzu, Duke of Ember Island, who was a navy officer during the Great War and was an important political figure during Ozai's regime. Being a friend of Iroh, he understood some of the Fire Lord's uncle's decision to supplant the idealistic young man on the throne. Yet the Dragon of the West is making plans to retire, leaving the young, untested and inexperienced Fire Lord to to rule in these uncertain times. Perhaps if Sun Tzu made Zuko aware of the realities of the geopolitical situation, he may be able to persuade the young man to at least see his error in judgement.
"Your Majesty, many of the lords who openly support you, including myself, are very concerned about our country's relationship with the Earth Kingdom," said Sun Tzu.
"And what sort of concerns?" asked Zuko guardedly.
"Their primary grievance is that you are helping the Earth Kingdom in their ethnic cleansing of the colonies."
Zuko grimaced at the word 'ethnic cleansing', which was turning into a taboo. His face was immediately flushed with anger, "It's not ethnic cleansing! It's...it's a promise that I made with my friends!"
"A promise that would ruin your own country and betray your countrymen. Not only are you removing your loyal subjects from their homes without compensation; you are also allowing the Earth Kingdom to cut off our access to strategic resources that are vital to our economy."
"Those are lands and resources that we stole in the first place! I promised to restore the honor of the Fire Nation and that's what I intend to do!"
Sun Tzu pulled out a well-worn copy of the latest news pamphlet. The mysterious group printing them in the Fire Nation were ordered to do it out in the open now, and to everyone's surprise they complied. But not without ensuring hefty investments from wealthy businessmen. Not only was it becoming popular, it was also an outlet to help get people's message out. Now these newspaper companies are becoming more popular than ever.
"Have you read the latest headlines? About the lynch mobs in the Earth Kingdom? Ever since the start of the HRM, thugs from Ba Sing Se have been rounding people up and hanging them. Their crime; for cooperating with our government. They have a routine now, in which our army would escort the colonists out. Then the Earth Kingdom would move in and allow their gangs of thugs to carry out bloody reprisals on so-called 'collaborators.' The people that are suffering at the hands of these thugs, are people who have grown to love and respect our country and our people. Many of them are our allies who have fought alongside our men, and you're abandoning them."
"Earth King Kuei promised that they would be treated humanely."
"I'm afraid that Kuei lied," Sun Tzu offered the news pamphlet to Zuko who stared at it, which showed a caricature of mangled bodies hanging from a tree. The headlines read, "EARTH KINGDOM BARBARISM CONTINUES". The tree was so crowded that its branches were beginning to sag under the strain. "Kanto has condemned the lynchings, comparing them to the razings of the Air Temples. They've also sharply criticizing you and your regime for allowing it all to happen."
"WHO CARES WHAT THEY THINK?!" Zuko exploded. "I have my promise and my honor to keep! It's not like any of our people get hurt did they?"
"No. But I'm afraid that what is happening is very hard to ignore. Not when the whole world is watching."
Zuko's face darkened. "Well Kanto can go to hell," he said in a low voice.
Sun Tzu was visibly unfazed. "You may have that attitude now, but it is very difficult to ignore them now these days-"
"And why is that?"
"Kanto is a powerful member of the new Air Nomad Co-Prosperity Movement. It's a trade union that was once exclusive for the Air Nomad countries. And with the Earth Kingdom continuing to expand their borders, ANCO is quickly gaining new members and influence. Especially now that the Water Tribes have joined their union."
Zuko's eyes went wide. "Both of them? Both the Northern Water Tribe and the Southern Water Tribe?"
"Yes." The news hit Zuko like it had hit him in the gut. The Air Nomads and the Water Tribes standing together, hand in hand. Not only does ANCO grows stronger as a trading bloc, but now they have a powerful voice by including two major powers.
"Even as we speak, they are sending diplomatic envoys to other countries to negotiate treaties with them. Especially those that are controlled by the Council of Thirteen, and Omashu," explained Sun Tzu. "ANCO is not just a collection of a few backwater countries and rebellious colonies. Now they are a legitimate and potent political force in the international stage. Their delegations are even negotiating a secret military alliance."
Zuko sighed with resignation. "Is there any chance that they may change their minds?"
"No, I don't see that happening. For one ANCO promotes self-determination in the colonies, the protection of individual rights and the formation of democratic institutions. As such they are staunchly opposed to authoritarian or autocratic rule like they have in the Earth Kingdom. But I believe that they are still willing to work with us given our attitude in free trade."
"So what's their attitude towards us?"
"They see as us as partners in trade, since the colonies have become very important to their economies. Ever since your efforts to reconcile with them, it has become politically possible to negotiate secret treaties with some of the members. Kanto being one of them."
"Should we?"
"It would be a prudent decision, since you have significantly reduced the army, the navy, and the air corps."
"A measure that would bring peace and help reduce our debts," Zuko said pointedly.
"It is a measure that is wise in the long run. But it does little to defend the interests of our country. Therefore, we would have to rely more on the strength and sincerity of our allies."
"But the Air Nomads are sworn enemies of the Earth Kingdom, being allies with them would invite war."
"Then you should not have promised to reduce our navy or the air corps, which has greatly limited our offensive capabilities."
"Offensive capabilities?! Our military should only exist defend our country!"
"Defending our overseas interests is the same as defending our country. What happens over in the colonies matters over here. By allowing the Earth Kingdom to empty the colonies and have their way, your decision has caused the deaths of tens of thousands of people. The majority of which were Air Nomads who were displaced by the fighting and lived and worked in the colonies. Now the Air Nomads are blaming their deaths on the Fire Nation, all of which has damaged our international prestige and credibility. Not to mention the HRM has allowed the Earth Kingdom to do even more damage indirectly by threatening our economy."
"The economy, it's always about the money," scoffed Zuko.
"Economics certainly do have a part in it. A major reason why your forefathers established the colonies in the first place, was to secure strategic resources for our island nation."
"By enslaving people?"
"By working with local businessmen, partnering with local leaders, and hiring local help, we were able to encourage greater economic development, both here in the Fire Nation and in the colonies," Sun Tzu said patiently. "The colonies have become very important to the Fire Nation, since they offer the raw materials that we need to keep our economy going. Without those raw materials, a lot of businesses are going to under and a lot more unemployed, hungry, and angry people are going to blame you for their troubles. The Earth Kingdom wants the colonies to undermine us. And they want the colonies for themselves."
"I don't want to hear anymore of this. I'm already late for my next meeting. I have already made my decision and I will continue to support the HRM that I created with my friends," Zuko retreated from the room. Sun Tzu closed his eyes in resignation.
"That went well," said a voice from a corner in the room after a few moments after Zuko left the room.
"No it did not," Sun Tzu said motionless.
"Kanto is still willing to work with the Fire Lord. His partnership with the trade union would be very appreciated," said the voice to quickly move things along.
"The enemy of my enemy is my friend, huh?"
"We are not your enemy."
Sun Tzu looked up towards the ceiling. "Come down from here then, if what you say is true," he said. There was long awkward pause, which made him a wary, then a black figure in the dark corner of the room dropped silently to the floor, and came out from the shadows. The light revealing a Kazekage in his discreet black uniform and white mask - the sight of which sent shivers up the duke's spine but he did not show it. "Take off that mask," he said gruffly. The person obeyed revealing his identity.
"I am Mao, member of the Kazekage," Mao introduced himself, doing a small bow with the ridge of his palm of his right hand over his heart.
Sun Tzu made a small laugh. "Ha, ha, ha. Oh, yes I've heard you! The star-crossed young lord who tried to rescue the Fire Princess from her evil brother! Oh, I mean no offense. But to see you here in the flesh only confirm the rumours."
"The rumours are quite real."
"Let me caution you that to spirit her out of the Fire Nation, will be abduction. And it may be seen as an act of war by her brother, the Fire Lord."
"I'm sure that you'd put in a good word for me."
"It'll take a lot more than your little schemes to smooth things over."
"And yet, he must face the reality of the world situation. Relations between the Fire Nation and the Earth Kingdom have only marginally cooled, and are more or less in a midst of a cold war. The Fire Lord needs to maintain close relationships with ANCO."
"What about the Avatar?"
"The Avatar's power and influence is only as real as Ba Sing Se would allows it. Without Ba Sing Se, the Avatar can only sway the Council of Thirteen and those faithful to him. Which is a small circle."
"But if you were to somehow convince him to join your side, he will be a very powerful ally. After all, he is - what do you call him?"
"The Avatar is the Air Nomads' Supreme Spiritual and Temporal Leader. A sort of god-king in layman terms. But the real power in the ANCO countries are now in the hands of the nationalists-"
"Like yourself."
"Yes, the people who are like-minded and who love their country. As such the legal and political authority are no longer in the hands of the Thirteen. No one wants to openly admit it, but the Avatar is a living relic of the past. To reinstall him back into power, would only be a continuation of the past that led the world to ruin. What we are afraid of in Kanto, is the abolishment of parliament, and the abolishment of our legal system that have greatly kept our countries stable. Wasn't that one of the main reasons why Sozin dissolved the Avatar Roku's Order in the Fire Nation?"
Sun Tzu nodded in acknowledgement. "The Order of the Avatar started out as an order of humanitarians, offering caregiving to widows and orphans, and then to the lame, the sick, and the untouchables. After a while they also opened hospitals and temples. Then they opened libraries and schools. Their group became very influential. Roku especially became very powerful. One only needed his favor to garner popular support for themselves. There were people who grew to love Roku so much that they wanted him to become Fire Lord, and for Sozin to abdicate."
"So the Order of the Avatar was a system within a system in the Fire Nation? Sounds very similar to how the Council of Thirteen came to power," replied Mao. "Only they also formed paramilitary groups. They were especially powerful in that they were ingrained into every aspect of our culture. It became customary for a family to send at least one of their children to join a monastery. And it was not unheard of for a destitute family to give up their children to the monks. Everyone back then were expected to observe daily prayer and attend the monthly festivals. And whenever there was a revolt during the old empire, the uprising were typically led by the monks."
There was a long pause as the two let the information set in. It was clear for both man and youth, that the current world situation is, in a way, a logical extension of this age old conflict. They talk some more on various topics. Mao was impressed by Sun Tzu's intellect that showed up despite the old man's attempts to downplay it. Mao did this, not only to read and measure Sun Tzu, but also to build a working relationship with him, which will be very important later on. Eventually Sun Tzu excused himself and they parted ways.
Zuko was now in the throne room. The fire pits have yet to be removed but he had decided to keep them there since they are handy for cold nights. He found it a little ironic, that he likes the idea of keeping a decor that had terrified him as a child. His chief minister sat off to the side of the room, observing at a distance as the Minister of Finance gave his report to the Fire Lord. But the minister did not say anything and began to make furtive glances to the chief minister and Zuko.
"Aren't you going to say anything?" asked Zuko impatiently.
"I beg your pardon sire," the minister bowed low, "I am a humble man with no title or lands. I had thought it would have been impertinent of me to speak before my lord."
Zuko closed his eyes and furrowed his brow. He forgot that it was the cultural norm for people from humble backgrounds to not speak to their soci superiors unless spoken to. Very much like children had to behave towards their elders. As Fire Lord, everyone had to observe this when he was in their presence. How he wished to be an exiled prince once more and people were much less formal.
"Please give your report," Zuko rubbed his forehead feeling a headache coming onto him.
"Sire," the minister said without straightening himself, as he unrolled a scroll. "To begin, the mandates that you have proposed may be enough to pay off all of our sovereign debt in ninety years-"
Zuko shot the minister a surprised look that prompted the speaker to stop. "Did I just hear you right? That it will take ninety years? Is it just for the war debt?"
"No, sire," the minister immediately. "It will take ninety years to pay off all of the debt, including the war reparations that you had promised. This includes the removal of the colonies and with the current tax code. Assuming that economic conditions remain the same in the homeland. But with the new arrivals from the colonies now living in the homeland, we may expect higher unemployment, and a more volatile conditions in the gold market. The worst scenario is that it would take over a hundred years."
"A HUNDRED YEARS?! How can we lessen the time it would take?"
"Raising taxes, implement land reform, take the Fire Nation off of the gold standard and allow our currency to float, decrease interest rates and create incentives for banks to lend, make it easier for home builders and homeowners to borrow money, and allow for businesses to have laxer government regulations, to name a few."
"Wait, what about our country's gold reserves? We have the largest reserves in the world. We can easily pay it off with that."
The minister began to shake his head but stopped himself and instead bowed lower as he said, "under your father, and grandfather, they had to sell much of it to pay for the war effort. If we use what is left to pay the debt, our country would go bankrupt. The gold will not even pay a third of what our country owes."
"How big is our sovereign debt?"
The minister got onto his hands and knees, "Fifteen and a third million sovereigns. Or 15.3 million." It was truly an astronomical amount in their world. Zuko was stunned, felt a pang in his stomach, and felt dizzy.
Over Fifteen Million Sovereigns? the thought echoed in Zuko's mind. What have I gotten myself into?
"If we were to sell all of the gold in the Fire Nation, our currency will become worthless given that their value is tied to gold," the minister bowed his head, since by now he was effectively criticizing his king. "Any changes to the quantity of gold, would immediately cause a corresponding change in the value of the paper money that is printed. The less gold we have in our vaults, the less valuable the currency becomes. If we sold our gold too fast, it would cause a panic; for those who are hoarding gold will sell theirs as well, causing a recession. By removing our currency off of the gold standard, it allow the central bank to be more flexible in its monetary control."
"But the gold standard is what has made our currency valuable. Without it, it would be nothing but paper."
"Why do you think that ANCO is trying so hard in getting more members? It's to build confidence in their economy to attract foreign investment. The Gold Standard does not protect itself from speculative attacks. People who hoard gold artificially increase the price of gold, and then sell it all when the prices are higher than average. Nor does it prevent run on banks, irresponsible lending or borrowing. By having more members, ANCO would be stronger as a whole in weathering a financial crisis, since they would have more members to lend and borrow money from. And given that ANCO is tying their currency to the Gold Standard as well, what happens to their currency would have a direct effect on our currency as well, given that both currencies are tied to the price of gold."
"Well, what do you mean?"
"Well right now, their exchange rate is twenty five yuan per ounce of gold. Our exchange rate is five sovereigns per ounce. Which made one sovereign worth five yuan. But say, the value of gold in ANCO has plunged to fifty yuan per ounce. This makes one sovereign worth ten yuan. This makes our exports to ANCO more expensive, than they were before the change in prices."
"I still don't see what's the problem," said Zuko obstinately.
"Well, the only way for our country to get of our huge debt is by exporting. Since our exports become more expensive by the different exchange rates. We would be importing more than we would export," the Finance Minister said patiently.
"Then we'll just change our prices to be worth less than the yuan."
"Then it would become what is a called A Race to the Bottom-"
"I still don't get what you mean. Gold is still money. The paper currency that we're using is simply a representation of it, that we use to make it easier for everyone to use."
The Finance Minister looked up with an expression that was unreadable. "As I was saying Your Majesty. The Gold Standard is a Monetary Policy that solely determines the value of our currency, but it also affects the foreign exchange rate. The Gold Standard has benefited the Fire Nation given that all of the other countries were poor. But in the past, with the subjugation of the colonies, there was more gold that made the price of gold drop. So when there is unexpected influx or shortage of gold, the price of gold would constantly fluctuate. So the Central Bank never had any real control over the amount of gold produced, and would constantly buy or sell gold to manipulate prices. Or change its interest rates that it charges to sell its loans."
"Okay fine. But what do you mean by a race to the bottom?"
"A Race to the Bottom is a situation in which competing currency are whittled down to nothing. In the case of the Gold Standard, we would somehow make gold even more valuable than it should be, to justify the printing of more money. To avoid this, we need the colonies."
"Why?!"
"The colonies have always been a dumping ground of our excess goods that we have been able to consume in the homeland. Much of our national achievements would not have been possible, had it not been for the colonies. The Earth Kingdom, or should I say Ba Sing Se, is planning to do more or the less the same thing by acquiring the colonies for themselves."
Zuko rubbed his forehead starting to feel the strain, "If we were to keep the colonies, how long would it take then?" he asked faintly.
The Finance Minister was surprised by this question. And by chance he had actually had his subordinates make this calculation before this meeting. "It would take us sixty years," he said.
Sixty years, sound a lot better than over a hundred, thought Zuko.
Zuko then had another meeting, this time with the Ministry of War. His father and predecessor, Ozai, had transformed the Fire Nation's military; from a collection of private armies of various lords, into a national institution for the whole country. This institution trained the Fire Nation's best and the brightest, to lead the best equipped, well paid, and best trained professional army in the world. Even though the Earth Kingdom may have be able to field the largest army in the world, the Fire Nation were the most organized, best managed, and the most formidable fighting force in the world.
In practice, the Fire Nation Imperial High Command were made up of high ranking officers throughout the military. The Army, the Navy, and most recently, the Air Corps (once an extension of the Army, now reorganized to be a separate branch of the military). Each man and woman in the Imperial High Command are traditionally from the high nobility of the Fire Nation. Aristocrats who started in the military institutions and military academies, promoted through the ranks through bitter experience, and no small measure of luck. Today, they were to brief their new Fire Lord on the world security situation, or otherwise the challenges that the Fire Nation faces.
As Zuko entered the room, everyone stood up and bowed to him as he entered. His Chief Minister, a tall but frail man promptly took his perch at the side of the room. Zuko sat down at the head of the table that was level with everyone else's. Unlike his father, Zuko did not want to be overbearing. When everyone was seated, General How offered Zuko with both hands, a thick volume of paper bound by twine, bowing his head as he did so. Zuko accepted it and opened it in front of him.
The first page was about the HRM. The one and only topic that seemed to dominate the conversation now these days; even though it was a promise to achieve meaning change, and lasting peace, the business of it was beginning to wear on him. The first topic was the role of the navy, now that the war was over, the colonies were to emptied, and Zuko's decision to downsize the military; the navy was to be the first to be put on the chopping block. The first page introduction read,
"From time immemorial, the purpose of the navy has been to influence, and sometimes decide, issues on land. This was so with the Water Tribes of antiquity; the First Air Nomad Empire, whose armada tried and failed to conquer the Fatherland; and, most eminently, in our conquest of Ba Sing Se. The sea has always given man inexpensive transport and ease of communication over long distances. It has also provided concealment, because being over the horizon meant being out of sight and effectively out of reach. The sea has supplied mobility, capability, and support throughout history, and those failing in the sea-power test - notably the Earth Kingdom and the Air Nomads - also failed in the longevity one."
- Fire Lord Ozai
Zuko read the quote that his father had made after he was told of the conquest of Ba Sing Se. The navy that made it possible in his father's and his forefathers' mad quest to conquer the world.
"Why did you choose to quote my father?" asked Zuko, though the question was not directed at anyone, but his voice betrayed his disapproval.
"Your lord father, firmly believed in the navy that would bring about final victory in the Great War. And he was right. He would have united the entire world, had he not been defeated by the Avatar," replied a silver haired Lord of the Navy.
Zuko recognized him as the father of Admiral Zhao. Zhao was defeated by the Avatar during the Siege of the North Pole. Zuko had seen Zhao being spirited away by the Ocean Spirit, after he had tried to destroy the moon. Today was truly full of ironies. Zuko tried to come up with an answer, any answer, so long as he could reply; he felt that he had to.
"My father was a monster," said Zuko flatly. But immediately regretted his remark as an awkward pause filled the room, and then quickly added, "He wanted to destroy the world and recreate it in his own twisted image."
"Your lord father, was a man of many faults. But nonetheless, he was a navy man, it is no accident that the Fire Nation's is the single greatest naval power. Our country's destiny is tied to the sea. Most of all of our homes are built within fifteen miles from the sea. To scrap the navy, would be the single greatest blunder, in our nation's history," the Lord of the Navy said slowly to emphasize his point.
"Our country was once known as the land of peace. And now that the war is over, we no longer have the means to support such a large navy. Our size of our military is disproportionate to our country's civilian population, and our military spending accounts for over a third of our total government spending," countered Zuko.
"Sire, our relationship with the Earth Kingdom is lukewarm at best," General How defended. "If their recent activity in the colonies are any indication-"
"The war is over. I will not hear anymore of these alarmist notions of a non-existent threat," Zuko shot back.
A few of generals and admirals at the far end of the long table, tried their best not to roll their eyes.
"The threats that our country faces, are more subtle. There is also the issue of our access to strategic resources," continued General How.
"What about them?" Zuko said with an exasperated sigh.
"It's mainly about the coal deposits. The Earth Kingdom has been systematically seizing coal companies that have been shipping coal to the Fire Nation. This has forced us to look for other lands to replace our supplies. And reduce our dependency on coal by switching to oil."
"Which is why I want to reduce the military, since we will longer have the resources to support such a large military. So we don't need as much coal or oil."
"Yes, but our country will not produce enough to both fuel the economy and our military. Even with the proposed reduction levels."
Zuko furrowed his brow. "Can we import them from the Earth Kingdom?"
"Like I said. The Earth Kingdom is closing down all of the coal mines," General How said quickly.
"Which has forced us to seek an alternative to coal. We have known for years about the potential of crude oil. But it's only now that the oil companies have vastly improved on their production that it is now a viable source of energy," added the Lord of the Navy. "But it's not only coal or oil that we have to worry about. Food production has fallen in the Fire Nation in recent years, forcing us to import more food from the colonies. We also have to secure new sources of other raw materials, such as tungsten, metal ores, timber-"
"Yes, yes, I've had an earful from Sun Tzu already," Zuko frowned and waved dismissively, he clearly no longer wanted to be there.
"Your Majesty spoke with His Grace?" asked the Lord of the Navy inquiringly.
"Yes," said Zuko unsure what will come next.
"And what did His Grace tell His Majesty?"
"He basically told me what you and the Finance Minister had told me and more. But as I have said to Sun Tzu. I will not go back on my word with the Avatar and Earth King Kuei. I will not turn my promise to my friends in the Earth Kingdom into a lie. And I will not allow the Fire Nation to go to war, unless it is absolutely necessary," said Zuko definitely to the officers, most of whom were now staring at the table in front of them.
By the time that happens it may too late, muttered the Lord of the Navy as shuffled through his papers.
"What was that?" Zuko half shouted.
"I'm debating with myself, if we should give the Earth Kingdom our new warships, or the old rusty ones. But since you've decreed that are to be gifts to your new friends. I was afraid of offending them," defiantly replied the Lord of the Navy.
Zuko glared at the old man.
Meanwhile Nagayasu sat in the waiting room of the Fire Nation Imperial Palace. He has been waiting there for an hour accepting strong liquor and dim sum from his hostess. To help pass the time he started a casual conversation and quickly started flirting with her. Turned out the old man was a notorious lover of women and liqour.
"Sir really knows how to treat a woman," said the hostess holding up her hand with a diamond ring gracing her finger.
"A beauty of the Fire Nation such as yourself deserves beautiful things."
"Ah, beauty is only skin deep. To be truly beautiful, one must be beautiful on the inside."
"Then you're gorgeous," Nagayasu leaned closer to his hostess, being literally very forward with her.
"Good sir," whispered the hostess her breath brushing his cheek, her face flushed. Just when they were getting closer, they heard footsteps approaching and they quickly separated. The door opened revealing a gaunt faced Fire Lord.
"Ah, Fire Lord Zuko," bowed Nagayasu, "her ladyship had finished describing Ember Island to me. I am now quite eager to visit one day soon. You are truly blessed with a fair and beautiful country." Nagayasu smiled at the hostess who smiled back.
"Thank you Nagayasu-sensei. I hope that you are enjoying your stay," said Zuko. Nagayasu was surprised, but did not show it as he was not expecting someone from the Fire Nation to refer to him in an honorific. Sensei as an honorific is the appropriate term when one refers to a teacher, an instructor, doctor, or civil servant. Only the Air Nomads use honorifics to address each other. For an outsider, even a Fire Lord, to address an Air Nomad in an honorific is rather awkward.
"If you will please excuse us," said Zuko politely to the hostess, who smiled and bowed before leaving. "I hope that you have not been waiting long for me. My last appointment took longer than I had thought."
"The wait was not long. Though it gave me some time to gather my thoughts. My government wishes for me to express concerns about the ships that you intend to send to the Earth Kingdom, which is not a part of the Peace Accords that you signed. Why are giving your rival one of your country's most valuable treasures?"
Zuko was taken aback, Nagayasu is Kanto's best diplomat, but he does not pull any punches. It was a very difficult subject for him, which is why he was forced to make Nagayasu wait for so long.
"I have talked about this to my Imperial High Command. The Earth Kingdom has problems with piracy that my country was largely to blame. I feel that it is my responsibility to make peace with the Earth Kingdom by helping them address their security problems."
"That is very generous," said Nagayasu but he did not mean it. "You are right to support the Earth Kingdom now in their time of need. A strong and rational Earth Kingdom is more preferable than allowing it to fall to ruin, and destabilize the continent. And we cannot allow their problems to spread throughout the whole world."
"I am glad that you see things my way," said Zuko with relief.
"But, Kanto is facing similar problems, and you have allowed the Earth Kingdom to block our arms deals with your ship wrights, and gun merchants-"
"My country is no longer in the business of exporting weapons to spread violence," Zuko said abruptly, the strain could be heard in his voice.
"Yet you are perfectly at ease with giving away your warships to the Earth Kingdom; who would have no qualms in using them in their ambitions in the colonies and beyond."
"I will restore the honor of my country by making it a land of peace. It will be a shining example to the world."
"But will it be an example of peace, or an example of indifference to the Earth Kingdom's continuing barbarity in the colonies?"
Zuko felt as though he had been struck in the heart.
"Those arms deals are important for Kanto because we need to import arms, and military equipment to defend ourselves. We may have a stable, strong, and responsible central government; a burgeoning and stable economy, and we are a member of ANCO. But all that is meaningless if we do not have weapons to defend ourselves, weapons that you are withholding. If the Earth Kingdom comes knocking on our doors and overtake us and ANCO, where will you export to?"
Zuko paused, trying to find an answer. "Is your country willing to allow the colonies to remain in your country? Will you cooperate with the HRM?" he said slowly.
"...No, of course not. We have no intention, nor any desire of conducting ethnic cleansing in the colonies."
"Very well then. I shall allow the arms shipments to go through. Provided that you will take measures to protect the colonists."
"It will be done. In fact I am glad that you have brought up the subject, in that my government has also instructed me to deliver a proposal - in respect to our two countries' informal trade arrangements." Nagayasu took out a briefcase and offered a scroll.
A man servant who was there with, walked over and kneeled on one knee, taking the scroll with both hands, bowing his head. He then kneeled before Zuko and then offered the scroll to him with both hands.
"My government proposes that the colonies will retain semi-autonomous rule for fifty years, provided that they abide to our trade agreements with them," said Nagayasu.
"Which are?"
"They are to become special economic zones. Any trade to and from the Fire Nation and the colonies will not be taxed by Kanto, but any goods entering Kanto will be taxed. And also it is my government's wish to give some special consideration to the Fire Nation in terms of financial trade."
Zuko frowned. It was as Sun Tzu had said, but Nagayasu's admission had confirmed it, every colony has been courted with the idea of joining ANCO. His lords and his spies reported that they may join the trade union. And by accepting semi-autonomous rule, the colonies would effectively break away from the homeland. But the idea of financial trade is intriguing, which Zuko's personal aides had told him briefly, it was a radical new idea that no one had even dreamed of before.
"What sort of special considerations that your government have in mind?"
"We wish to form an international banking system with the Fire Nation."
Zuko was speechless.
After a long, trying day at work, a mentally ragged Zuko climbed into his palanquin. At first he had not wanted to use it, since it made him feel too pampered, too detached, and elitist. But now he welcomed it, since it would separated him from anyone else who wanted to talk to him. All he did all day was talk and it was very tiring since he was continuously bombarded with affairs of state that was making his head spin. Now he just wanted to relax and not be bothered. Above all, he wanted to be alone with his sweetheart, Mai.
"So how is my handsome Fire Lord?" asked Mai cheerfully as she greeted him at the door. Zuko did not reply as he tried to find an answer to her question. "Zuko?"
"Hmm? Oh, fine," said Zuko simply without looking, thinking that a short answer would suffice. Seeing her blank expression that he found unreadable, he took her soft but firm hand and placed it under his, cradling it. "Come on, let's go inside. I want to relax for the rest of evening," he said leading her inside.
At dinner, Zuko sat in silence as he ate. But he did not have much of an appetite, as he was nursing a headache as Mai talked about her day, and her worries about managing the household. A traditional role that women are responsible for. Especially since it would show that she is a suitable wife of the Fire Lord. What kind of wife would she be if she did not know how to run a household?
"I had trouble deciding a color for the guest room. I couldn't decide between red or white. I thought that we should stick with red, our national colors. To show our guests our strong passion for our country. But white is a neutral, since we may be accepting visitors from overseas. Especially the gaang. But I couldn't decide, so I called for an interior designer. And you know what he said?"
"What?"
"He said that we should use yellow," Mai scoffed. "Yellow is a horrid color, don't you agree?"
Zuko glared Mai. "I could care less what color the room should be. Just pick a color and have it painted."
Mai grimaced, Zuko was clearly in a foul mood. But she still wanted his input, the palace is his house after all.
"So what color would you like?" she asked gently.
"Red! White! Yellow! I don't care! Just pick one!" Zuko roared his temper causing the candles in the room to burn more intensely until they burnt out.
"What's wrong with you?"
"What's wrong with me?! What's wrong with you?! Do you need me to do everything?!"
"Don't you use that tone with me, I'm not some servant girl to serve your every whim. I'm make this palace into a home. Your palace I should say."
"That's right this is my palace and I'm the Fire Lord! And I've had it up to here with everyone today with everyone talking my ear off! And I'm ordering you to give me some peace and quiet!"
"You can't order me around," Mai angrily rose to her feet. Zuko rose to his.
"I told you that I wanted to relax, not listen to your complaining."
"I was not complaining!"
"Yes you were!"
Mai had enough, with an exasperated gesture she withdrew. Leaving Zuko to sulk by himself.
I'm such an idiot, Zuko thought to himself pushing his tray of obento away from himself and walked briskly to Mai's bed chambers. He had her room renovated just for her when she moved in. He had the most well known interior designers come and renovate it however she wanted it. From top to bottom, from the outside balcony, right down to the door trim, this was her room that he was going to.
"Mai?" He spoke softly through the door, as he timidly knocked on it. "Mai, may I come in?"
Not waiting for an answer he opened the door to see Mai's sleeping form on her bed, facing towards the open balcony. Zuko crept into her bed resting his head beside hers. She rolled over to face him, fully awake her face showed signs of tear stains.
"I'm sorry my love," Zuko whispered. "It's just that- today was very hard for me. I didn't mean to take it out on you."
"Jerk."
"I was tired. I was frustrated. I shouldn't have snapped at you."
"Even if you're tired and angry; you shouldn't have shouted at me. I'm trying to do the best I can. I'm not exactly used to doing traditional roles."
"Will you forgive me?" Zuko caressed Mai's cheek.
"...All right. Just don't do it again."
Zuko leaned closer to kiss Mai, but she jerked her head back, placing a hand on his lips. Her soft touch on his skin was electrifying. He took her hand and began kissing it, taking whatever was given.
"But," smirked Mai as she withdrew her hand, "Just to be sure that you've learned your lesson. You'll be sleeping on the couch tonight."
"What?" whined Zuko.
"You heard me. I'm refusing you tonight. Go on, march."
"Didn't you say that you've forgiven me?"
"Oh, don't give me that. Yes, I do forgive you this time. But first you'll need to learn your lesson."
Zuko groaned. It was going to be a long night.
Edited by Avatar Amaya