overlooked.' Although such opinions had become the common sentiment, Palpatine's words pierced Valorum like a sword.

The fact that he knew them to be true made them all the more difficult to hear. He turned his back to the view and returned to his desk, where he sat heavily into his padded chair.

Aging with distinction, Valorum had a receding cap of shorn silver hair, pouches under piercing blue eyes, and dark, bushy brows. His stern features and deep voice belied a compassionate spirit and questing intellect. But as the latest in the line of a political dynasty that stretched back thousands of years-a dynasty many thought weakened by its uncommon longevity-he had never been fully successful at overcoming an innate patrician aloofness.

'Where have we gone wrong?' he asked in a firm but sad voice. 'How did we manage to miss the portents along the way?' Palpatine showed him an understanding look. 'The fault is not in ourselves, Supreme Chancellor. The fault lies in the outlying star systems, and the civil strife iniquity has engendered there.' His voice was carefully modulated, occasionally world — weary, seemingly immune to anger or alarm. 'This most recent situation at Dorvalla, for example.' Valorum nodded soberly. 'The Judicial Department has requested that I meet with them later today, so they can brief me on the latest developments.' 'Perhaps I could save you the trouble, Supreme Chancellor. As least in terms of what I've been hearing in the senate.' 'Rumor or facts?' 'A bit of both, I suspect. The senate is filled with delegates who interpret matters as they will, regardless of facts.' Palpatine paused, as if to gather his thoughts.

Prominent in a kind if somewhat doughy face were his heavy — lidded, watery blue eyes and rudder of a nose. Red hair that had lost its youth he wore in the provincial style of the outlying systems: combed back from his high forehead but left thick and long behind his low-set ears. In dress, too, he demonstrated singular allegiance to his home system, favoring embroidered tunics with V-shaped double collars and outmoded cloaks of quilted fabric.

A sectorial senator representing the outlying world of Na — boo, along with thirty-six other inhabited planets, Palpatine had earned a reputation for integrity and frankness that had set him high in the hearts of many of his senatorial peers. As he had made clear to Valorum in numerous meetings, both public and private, he was more interested in doing whatever needed to be done than in blind obedience to the rules and regulations that had made the senate such a tangle of procedures.

'As the Judicial Department is certain to tell you,' he began at last, 'the mercenaries who assaulted and destroyed the Trade Federation vessel Revenue were in the employ of the Nebula Front terrorist group. It seems likely that they gained access to the freighter with the complicity of dockworkers at Dorvalla. How the Nebula Front learned that the freighter was carrying a fortune in aurodium ingots has yet to be established. But clearly the Nebula Front planned to use the aurodium to finance additional acts of terrorism directed against the Trade Federation, and perhaps against Republic colonies in the Outer Rim.' 'Planned?' Valorum said.

'All indications are that Captain Cohl and his team of assassins perished in the explosion that destroyed the Revenue.

But the incident has had wide-ranging repercussions, nevertheless.' 'I'm well aware of some of those,' Valorum said, with a note of disgust. 'As a result of continuing raids and harassment, the Trade Federation plans to demand Republic intervention, or, failing that, senate approval to further augment their droid contingent.' Palpatine made his lips a thin line and nodded.

'I must confess, Supreme Chancellor, that my first instinct was to refuse their requests out of hand. The Trade Federation is already too powerful-in wealth and in military might. However, I've since reassessed my position.'

Valorum regarded him with interest. 'I'd appreciate hearing your thoughts.'

'Well, to begin with, the Trade Federation is made up of entrepreneurs, not warriors. The Neimoidians, especially, are cowards in any theater other than commerce. So granting them permission to enlarge their droid defenses- slightly, at any rate- doesn't concern me unduly. More important, there may be some advantage to doing so.' Valorum interlocked his fingers and leaned forward.

'What possible advantage?' Palpatine took a breath. 'In exchange for honoring their requests for intervention and additional defenses, the senate would be in a position to demand that all trade in the outlying systems would henceforth be subject to Republic taxation.' Valorum sat back in his chair, clearly disappointed. 'We've been through all this before, Senator. You and I both know that a majority of the senate has no interest in what happens in the outer systems, much less in the free trade zones. But they do care about what happens to the Trade Federation.' 'Yes, because the shimmersilk pockets of many a senatorial robe are being lined with graft from the Neimoidians.'

Valorum snorted. 'Self-indulgence is the order of the day.' 'Undeniably so, Supreme Chancellor,' Palpatine said tolerantly. 'But that, in itself, is no reason to allow the practice to continue.' 'Of course not,' Valorum said. 'For both my terms of office I have sought to end the corruption that plagues the senate, and to unravel the knot of policies and procedures that thwart us. We enact legislation, only to find that we cannot implement it. The committees proliferate like viruses, without leadership. No fewer than twenty committees are needed just to determine the decor of the senate corridors.

'The Trade Federation has prospered by taking advantage of the very bureaucracy we've created.

Grievances brought against the Federation languish in the courts, while commissions belabor each and every aspect. It's little wonder that Dorvalla and many of the worlds along the Rimma Trade Route support terrorist groups like the Nebula Front.

'But taxation isn't likely to solve anything. In fact, such a move could prompt the Trade Federation to abandon the outlying systems entirely, in favor of more lucrative markets closer to the Core.' 'Thus depriving Coruscant and its neighbors of important outer system resources and luxury goods,' Palpatine interjected, seemingly by rote.

'Certainly the Neimoidians will see taxation as a betrayal, if for no other reason than the Trade Federation blazed many of the hyperspace routes that link the Core to the outlying systems. Regardless, this could be the opportunity many of us have waited for-the chance to exercise senate control over those very trade routes.' Valorum mulled it over briefly. 'It could be political suicide.' 'Oh, I'm well aware of that, Supreme Chancellor.

Proponents of taxation would suffer merciless attacks from the Commerce Guild, the Techno Union, and the rest of the shipping conglomerates awarded franchises to operate in the free trade zones. But it is the appropriate measure.' Valorum shook his head slowly, then got to his feet and moved to the windows. 'Nothing would cheer me more than getting the upper hand on the Trade Federation.' 'Then now is the time to act,' Palpatine said.

Valorum kept his gaze fixed on the distant towers. 'I could count on your support?' Palpatine rose and joined him at the view.

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