The Shannli Crisis
Ambitions Checked as Independence Maintained

Following quick reconstruction and a renewal of nationalism in Kamograd, the President decided to embark on an adventure that would bolster the Kamogradian treasury. Rapid economic growth came at a price, notably driving Kamograd into severe debt. In order to rectify the financial situation, an attempt was made to invade Shannli, withdraw funds from that nation, and leave. However, the action required the permission of the Volkshem (Kamograd Parliament). In addition, since Kamogradian finances were in such poor shape, the World Bank had the right to force a pacifist policy on the Kamograd government.

On March 20, 2001, the Volkshem was asked to authorize an invasion into Shannli. Ruled by the Pacifist Party, the motion was soundly defeated in Parliament. After a mere two hours, alleged terrorists from Shannli attacked Kamograd. The President called an emergency meeting of the Volkshem and asked the Parliament to authorize prompt action against Shannli as a result. Facing pressure from opposition parties and an enraged populace, the Pacifists surprisingly kowtowed to pressure and the motion passed.

Nevertheless, action was not taken as the World Bank blocked any incursion into Shannli. Hence began a desperate attempt by the President to secure finances to free himself from the regulations of the World Bank. After flying to Dickens Peninsula, the President secured a loan of A99,250K. The amount was not enough to lift Kamograd from the clutches of the World Bank.

The President then called another meeting of the Volkshem to authorize action into Jenneva with the hopes of using Jennevan capital for the raid into Shannli. The Pacifists strongly objected to the motion and it was defeated.

When news hit the streets the next morning, March 21, other powers with a vested interest in Shannli began making plans. In the weeks before, the Imperatore of Pauldelphia and the CEO of Miketon had begun negotiations over the secret partitioning of Shannli. Any move by Kamograd would spoil the plan. Hence high level talks occurred between Pauldelphia and Miketon over the development into Kamograd. The Nexus agreed to remain neutral in the Miketon-Pauldelphia plan but gave it cautious approval. The Confederacy was not consulted.

It was agreed that the Pauldelphian army would enter Shannli to protect it from Kamogradian aggression. In return, Miketon and Pauldelphia would receive Shannlian buffer zones in order to entrench Shannlian borders. As well, Shannli would be guaranteed land to the south and west when the time was right.

As Kamograd attempted to secure loans from El-Hussaq and Rattanjeetland, Pauldelphian troops crossed the Shannli border. The move infuriated the Confederacy as many believed that Kamograd had already secured Shannli. The President of El-Hussaq proposed that the Confederate Army be sent into Shannli to preserve Confederate interests. When it was realized that Kamograd had not entered Shannli, the Confederacy passed a motion urging for Shannlian neutrality - e.g. no power would violate its sovereignty.

The Imperatore agreed as Shannlian sovereignty was guaranteed. Pauldelphian troops withdrew from Shannli, noting that the incident was nothing more than "a military exercise gone awry". The Confederacy also passed a motion forbidding Kamograd from entering Shannli. All loans from the Confederacy to Kamograd were also denied. When March 21 came to a close, Shannli successfully survived the greatest threat to its existence without lifting a single muscle.