(The first two paragraphs have been revised by the teacher. The rest of the letter is completely the work of the student. Note that this letter provides no tables or charts-essential in providing lots of details-because the content does not require them.)

March 25, 1999

Dr. Jambo Ngambo
Minister, Ministry of the Interior
Suite 405, Government Administration Building
Mambo
Mazingira

SUBJECT: Negotiations with Holdev

Dear Mr. Ngambo:

This place reminds me of our trip to Taiwan last month. It was truly a pleasure to work with you on your team, and we all learned a lot from your guidance. It was good preparation for the negotiations that we are conducting now, with Holdev. You asked me to keep you informed on the progress of negotiations, and I hope that the following will satisfy your needs.

I am happy to report that negotiations are progressing quite nicely, and we think that Mazingira will benefit from the agreement that we ultimately reach. Mazingira's tourism industry will be developed with Holdev's investment of money and experience, and at the same time Mazingira is ensured of close control over the project and tourism development.

Some background information on the negotiations will help you understand more clearly how they have developed. In preliminary meeting for negotiation we initially planned to try to hold the power in managerial position in order to participate in the process of planning and manag-ing. And we reached the agreement that we should persuade Holdev to hire above 30% Maz-ingiran in the top management position. Of course, we expected Holdev's objection like that Mazingiran haven't experienced at tourism, so they do not have professional knowledge about managing the business. As the counter argument of this objection, we planned to convince Holdev that Mazingira recognizes their concerns about that, but that it needs to have the right to control the management of Holdev, showing the examples about tourism in other developing countries which are being troubled with many problems caused by thoughtless investment.

However, negotiations didn't develop into an argument easily. Initially, Holdev required that we allow them to hire 100% Holdev's own personnel in top management position, emphasizing the efficient management by skilled workers. So our requirement of employment in top manage-ment position was difficult to be accepted, and as alternative plan, we suggested to make a oversight committee, in which Mazingiran will be able to participate in the management, made up by 50% Mazingiran and 50% Holdev. Finally, they accepted our proposal about a oversight committee, but at the price of it, we had to accept that the rate of employment about Mazingiran should be 20% in top management position, 40% in middle management position and 90% in lower positions, and that the oversight committee's right should be limited to the right of choos-ing projects, not including the right of intervention in management.

Our assessment of the present state of the negotiation is rather positive. Although we couldn't achieve our first objective of hiring above 30% Mazingian in top management position, our succeeding in making a oversight committee provided Mazingira with a stepping stone to con-trolling Holdev's management. Through this committee, Mazingira would be able to select pro-jects which would give Mazingira more profits, and to prohibit the conduct of projects which have possibility to cause problem to Mazingira. And in near future, Mazingira could get the committee to have influence on the management, by strengthening the power of it.

Our team recommends that it is helpful for Mazingira to allow Holdev to invest in tourism, un-der the condition that Mazingira participate in the process of conducting projects. And the spe-cific recommendations that we have are as follows. In order to strengthen the committee's power, we hope that you make the effort compose the committee of as many persons as possi-ble, and make the limit of the number of committee members as above 50 persons. And I strongly recommend that you recruit capable professionals in various fields about tourism. Fi-nally, it would be helpful to establish relationship with the top management in tourism compa-nies in other developing countries, in order to exchange useful information.

In conclusion, we feel that negotiation goes some way to respect each other's position. Holden held the priority in management, that is, 80%, 60% Holdev's own personnel in top and middle management. And Mazingira get the permission to make an oversight committee which would play important role in choosing projects. We anticipate this commitee would become a good means to provide the opportunities to control Holdev's management.

Everyone on the team hopes that the contact would be concluded by you without any difficul-ties. And we want to express our gratitude for your concern and help. If you have any question or suggestion about our opinions, please call me. We'll be at this hotel until Monday.

Sincerely,

O Se Jin
Member
Mazingira National Tourism Development Board

Enclosure: Tourism Companies in developing countries