The year hadn’t been that profitable on a whole for the Councilate of Arbasses; they’d spent heavily on expanding their naval forces, establishing colonies overseas and attempting to create a trading co-operative which hadn’t been as successful as they’d hoped. In fact in had brought them nothing more than trouble as they now faced the issue of attempting to resolve the tension between Bennipolis and Commerce League member Valm. It was all over arms trade; a crude and uncivilised trade at best yet it was proving grossly profitable for Valm and they’d commit a significant investment towards escalating arms production. 

It was a tough situation, supporting either party would bring about damaging consequences so the value of each party had to be evaluated. Bennipolis was a naval threat to the Councilate yet there were unknowns; the Valm were friendly, commanded significant land forces and wholeheartedly supported the League. He decided a little bit of diplomacy wouldn’t go astray for now, if nothing it’d delay any consequence for now until they had grown stronger. The letter he’d received was crass and rude in nature, most likely sent by someone who was attached to the old ways. The apparent distaste for the Commerce League was apparent for all to see yet this nation who seemingly proclaimed diplomacy as a virtue saw fit to include disrespect. It was a funny old world yet it was the one they lived in. A reply was drafted and sent back to the City-State of Bennipolis containing their nations thoughts on the matter.
[hider=Bennipolis]
Demos of Bennipolis,

Your opinion on this matter is most welcome because as a peace-loving merchant at heart I find the trade of arms to be a crude act at best. However it remains a legitimate trade between two governments which has proved to be profitable for the Valm. The Tereridonians do have a shady past but with their opening is there not the chance for a new slate in the world? Could we not move past old grievances and seek to build a better future? 

I have contacted Valm about this matter, conveying my thoughts and feelings on the matter but the decision is for them alone. I will not wield any influence against Alhart III nor will I attempt to force any issue. I look forward to his reply, entrusting in his sense of reason and logic, as I also look forward to further future co-operation between our two people in the future.

Councillor Marcus de Happself, elected leader of the Councilate of Arbasses.
[/hider]
[hider=United Imperium of Valm]
King Alhart III,

I have been contacted on the matter of your arms trade with the Tereridonians on account of your refusal to reply to their own diplomatic efforts. I have taken the path of neither condoning nor condemning this transaction but I must stress the value of diplomacy even if it to prove fruitless. Attaining a reputation for ignoring and rudeness other nations is not beneficial to trade and as it stands now the reputation of the Commerce League is at stake. 

I make no request save that you consider sending a message to the City-State of Bennipolis yourself to discuss this matter. Know that we stand at your back in this matter and we will fight for the interests of the Commerce League should it be needed.

Good fortune friend,
Councillor Marcus de Happself
[/hider]

Turning his thoughts to the new world, Marcus approved the decision to send another colonial expedition overseas another $1B, 2000 Recruits and 4000 Regulars would be spent on their colonial ambitions, intending on expanding the borders of their colonial presence further northward along the coast. Half their colonial navy had travelled back in order to escort the ships over to the new colony site where they’d be moored in order to protect their new colony. The experts would be escorted from Wardenfall to the new colony in order to judge it’s worth before establishing anything too permanent. They were after valuable trade goods now and any unnecessary expenditure would simply be a waste.

A more pressing issue was how slowly the shipyards were working to produce their new fleet; despite boasting arguably the largest and finest dock in the world, work was progressing at a snail’s pace. $2B was to be committed in order vastly improve their production facilities and infrastructure, hopefully increasing the rate at which they could pump out ships.
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TL;DR
-$2B spent on shipyards and ship building technology in order to improve both quality and quantity of output.
-$1B spent on establishing another colony, along with 4000 Regulars and 2000 Recruits being sent over.