The Kiri shinobi gritted their teeth. These blades were a treasure in their village and created the 7 Ninja Swordsmen. A group idolised that their children aspired to join and something they were known for. 3 Ninja swords being lost to Konoha would be an embarrassment that would resonate for a long time, but they couldn't afford it and considering Katsuro's stance the only way to get them back would be to fight another war. Something they clearly couldn't do. Many turned to the clan heads, the Kaguya and Hozuki clan heads were the strongest Shinobi left in the village not including the disgraced swordsmen. They were at Half-step Kage level, but the gap was still huge. Unfortunately, the clan heads weren't too bothered by the swords, willing to let Katsuro have the concession so that it would reduce the price. The recent turmoil in the village between the clans was showing here. With the Yuki clan head as the Mizukage, the other clans had been relatively suppressed, now the opposite was happening. There was a clear divide between the elders and advisors, the clans and the more neutral Shinobi. It almost replicated Konoha. As a result, the circumstances forced them to let it go no matter how much shame they felt.
"Fine," the Kiri shinobi replied, solemnly.
Katsuro then nodded as he took in the reactions around the room, as he looked behind him to Fugaku. Fugaku nodded and stood, taking the floor.
"Konoha will return the 6 Tails Jinchuuriki and the 'Blastsword' Shibuki so that there may be peace. In exchange, Kirigakure will take responsibility for causing the war and pay the damages. Considering Kirigakure's situation the compensation will take place differently. Firstly, an upfront payment of 2.75 Billion Ryo. This figure is already much lower than we ought to ask for, and we will absolutely not go lower. Just for reference, the Stone paid 4 billion more than you. If the Kiri cannot pay that sum, it can be given in installments over the next 5 years, however there will be an interest of 15% year on year. But an initial payment of no less than a billion must be made.
Kirigakure will sign a non aggression treaty, and must agree to not take any mission such as assasination or kidnapping on any Shinobi of Konoha or the Land of Fire. Considering your manpower struggles, Konoha will also take on 55% of Kirgakure's missions for the next 10 years, for which Konoha shinobi must be allowed free movement in the Land of Water's waters."
Before they could protest, Kaito stood up to continue, "There will also be a number of economic and trade pacts. Please keep in mind many of these also need to be discussed between our respective daimyo. The Leaf will get priority on sales coming out of Kirgakure for Ninja weapons as well as a 40% discount, and any produce not directly bought by the Leaf will be tariffed at 50%. We would also like some specialist blacksmiths to come to the Leaf for a few weeks to teach some apprentices.
We will put an agreement in place so that Kirigakure can sell the Leaf its outstanding produce like fish. We may also trade produce of the Leaf like Uzumaki sealing techniques, explosive tags, soldier pills, medicinal products from the Nara clan etc. Toward these mutually beneficial trade agreements Kirigakure must fund the building of a port on the edge of the Land of Fire. This port will also be used by citizens to fish in the waters you govern, as such rights for that are also required. This port, and these trade agreements will have large economic benefits for both our nations, and we will want exclusivity on your exports. "
The shift of the terms were shocking to say the least. When Fugaku spoke, they grew more outraged and angry at the proposals. They were glad to hear the sum was less than they feared and could pay it in installments, but it was still a huge sum for them and that was not mentioning the outrageous interest rate. And then proposals to take their missions sparked anger, it was a direct challenge to their way of life. They somewhat expected the non-aggression pact and the agreement to not target Konoha's people, but the proceeding economic terms confused them. They seemed surprisingly nice. As Shinobi, the majority of members did not really understand the proposal fully, they didn't think too far ahead about the impacts they may have, but they heard of proposed trade that would benefit them both, which served to cool them down. Kiri had not thought of selling what they produced to other villages or nations before at all, and the idea of doing so even if discounted would take them out of their situation. The mention of gaining access to the Leaf's produce like soldier pills, food, even Uzumaki sealing on top of that? That was simply mouth watering.
Unfortunately, the gold on the surface blinded them to what was truly happening. The Leaf was moving to make Kiri its subsidiary without them even knowing. The trade agreements being exclusive meant they held all the power, a sudden cut off would leave Kiri in disarray once they had gotten used to their economy revolving around it. They would be reliant on them, and that's exactly what they hoped for. In the meantime, the Leaf would benefit, gaining an extra customer to sell to at a high price while being able to buy goods for cheap as the only buyer. Not to mention the subtle but deliberate movement to take their specialties. The rights to fish would mean that the Leaf wouldn't even need to import it once it got going, removing what had been Kiri's exclusive right. Forcing them to fund it allowed them to get the project going which had stalled under bureaucracy, corruption and greedy nobles. But more importantly, the blacksmiths.
The blacksmiths of Kiri were arguably the best in the world, they had made the 7 ninja blades, an achievement no one else had replicated. The closest were the blacksmiths in the Land of Iron or the Hatake clan blacksmiths who Katsuro had asked to teach his own Senju clan. This 'training' and 'visit' was simply a chance for Konoha to poach them under the promise of far better conditions, pay and respect. By the time Kiri noticed, it would be far too late.
This was all on top of taking their mission and moving in their lands under the excuse to have a similar effect as the Land of Stone even if at a smaller scale. It was a design that benefited Konoha much more subtly when Kiri couldn't directly afford the price of their actions. The implications were long term and difficult to spot. Even if some vulnerabilities or dangerous clauses were spotted like the reliance, Kiri would still go ahead, assured that they could deal with it, or that the benefits outweighed the consequences. In the short term they only saw benefits for Kiri, such as getting money from trade where they were under severe budget issues before. It was unfortunate they lacked the foresight or knowledge to be able to see through all the potential issues. As war focussed Shinobi it was simply outside their area of expertise. At most they could suspect something, and likely would but they would miss what the plan actually was.
Konoha would undoubtedly benefit, to the point of even exploiting them. But this agreement between them could improve the relationship between the villages. A step toward mutual co-operation that could finally see an improvement to stop the constant fighting. It set the foundations for an alliance, even if it meant forcing Kiri to be reliant on them. Despite the intentions, it was obvious no matter how it turned out it would be good for the Leaf. Either they gain an ally, or they make sure their enemy is vulnerable to them.
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