diff -Nur -Xp2/diff_ignore orig/common/city.c p2/common/city.c
--- orig/common/city.c	Thu Oct  4 22:34:39 2001
+++ p2/common/city.c	Thu Oct 11 22:58:23 2001
@@ -1941,7 +1941,7 @@
   struct government *g = get_gov_pcity(pcity);
   struct city *capital;
   int dist;
-  int val;
+  int val, trade_penalty;
 
   if (g->corruption_level == 0) {
     return 0;
@@ -1965,8 +1965,18 @@
       city_got_building(pcity, B_PALACE)) val /= 2;
   val *= g->corruption_level;
   val /= 100;
-  if (val > trade)
-    val = trade;
+
+  assert(game.notradesize < game.fulltradesize);
+  if (pcity->size <= game.notradesize)
+    trade_penalty = trade;
+  else if (pcity->size >= game.fulltradesize)
+    trade_penalty = 0;
+  else
+    trade_penalty = trade * (game.fulltradesize - pcity->size) /
+	(game.fulltradesize - game.notradesize);
+
+  val = CLIP(trade_penalty, val, trade);
+
   return (val);			/* how did y'all let me forget this one? -- Syela */
 }
 
diff -Nur -Xp2/diff_ignore orig/common/game.c p2/common/game.c
--- orig/common/game.c	Sat Oct  6 15:44:49 2001
+++ p2/common/game.c	Thu Oct 11 22:58:23 2001
@@ -715,6 +715,8 @@
   game.fogofwar    = GAME_DEFAULT_FOGOFWAR;
   game.fogofwar_old= game.fogofwar;
   game.auto_ai_toggle = GAME_DEFAULT_AUTO_AI_TOGGLE;
+  game.notradesize    = GAME_DEFAULT_NOTRADESIZE;
+  game.fulltradesize  = GAME_DEFAULT_FULLTRADESIZE;
   game.barbarianrate  = GAME_DEFAULT_BARBARIANRATE;
   game.onsetbarbarian = GAME_DEFAULT_ONSETBARBARIAN;
   game.nbarbarians = 0;
diff -Nur -Xp2/diff_ignore orig/common/game.h p2/common/game.h
--- orig/common/game.h	Sun Sep 16 22:27:13 2001
+++ p2/common/game.h	Thu Oct 11 22:58:23 2001
@@ -75,6 +75,7 @@
   int civilwarsize;
   int min_players, max_players, nplayers;
   int aifill;
+  int notradesize, fulltradesize;
   int barbarianrate;
   int onsetbarbarian;
   int nbarbarians;
@@ -377,6 +378,14 @@
 #define GAME_DEFAULT_PINGTIMEOUT     60
 #define GAME_MIN_PINGTIMEOUT         60
 #define GAME_MAX_PINGTIMEOUT         1800
+
+#define GAME_DEFAULT_NOTRADESIZE     0
+#define GAME_MIN_NOTRADESIZE         0
+#define GAME_MAX_NOTRADESIZE         49
+
+#define GAME_DEFAULT_FULLTRADESIZE   1
+#define GAME_MIN_FULLTRADESIZE       1
+#define GAME_MAX_FULLTRADESIZE       50
 
 #define GAME_DEFAULT_BARBARIANRATE   2
 #define GAME_MIN_BARBARIANRATE       0
diff -Nur -Xp2/diff_ignore orig/server/savegame.c p2/server/savegame.c
--- orig/server/savegame.c	Wed Oct  3 11:31:06 2001
+++ p2/server/savegame.c	Thu Oct 11 22:58:23 2001
@@ -2004,6 +2004,8 @@
     game.warminglevel  = secfile_lookup_int(file, "game.warminglevel");
     game.nuclearwinter = secfile_lookup_int_default(file, 0, "game.nuclearwinter");
     game.coolinglevel  = secfile_lookup_int_default(file, 8, "game.coolinglevel");
+    game.notradesize   = secfile_lookup_int_default(file, 0, "game.notradesize");
+    game.fulltradesize = secfile_lookup_int_default(file, 1, "game.fulltradesize");
     game.unhappysize   = secfile_lookup_int(file, "game.unhappysize");
     game.angrycitizen  = secfile_lookup_int_default(file, 0, "game.angrycitizen");
 
@@ -2366,6 +2368,8 @@
   secfile_insert_int(file, game.warminglevel, "game.warminglevel");
   secfile_insert_int(file, game.nuclearwinter, "game.nuclearwinter");
   secfile_insert_int(file, game.coolinglevel, "game.coolinglevel");
+  secfile_insert_int(file, game.notradesize, "game.notradesize");
+  secfile_insert_int(file, game.fulltradesize, "game.fulltradesize");
   secfile_insert_int(file, game.unhappysize, "game.unhappysize");
   secfile_insert_int(file, game.angrycitizen, "game.angrycitizen");
   secfile_insert_int(file, game.cityfactor, "game.cityfactor");
diff -Nur -Xp2/diff_ignore orig/server/stdinhand.c p2/server/stdinhand.c
--- orig/server/stdinhand.c	Sun Sep 16 22:27:55 2001
+++ p2/server/stdinhand.c	Thu Oct 11 22:58:23 2001
@@ -140,6 +140,8 @@
 the fixed number of arguments and the reject_message - change? - rp
 *********************************************************************/
 
+static int valid_notradesize(int value, char **reject_message);
+static int valid_fulltradesize(int value, char **reject_message);
 static int autotoggle(int value, char **reject_message);
 
 static int valid_ruleset(char *whichset, char *subdir, char **reject_message)
@@ -489,7 +491,26 @@
     N_("If a city would expand, but it can't because it needs an Aqueduct "
        "(or Sewer System), it loses this percentage of its foodbox "
        "(or half that amount if it has a Granary).") },
-  
+
+  { "notradesize", &game.notradesize, valid_notradesize, NULL,
+    SSET_RULES, SSET_TO_CLIENT,
+    GAME_MIN_NOTRADESIZE, GAME_MAX_NOTRADESIZE, GAME_DEFAULT_NOTRADESIZE,
+    N_("Maximum size of a city without trade"),
+    N_("All the cities of smaller or equal size to this do not produce trade "
+       "at all. The produced trade increases gradually for cities larger "
+       "than notradesize and smaller than fulltradesize.  "
+       "This does not apply under Democracy.  See also fulltradesize.") },
+
+  { "fulltradesize", &game.fulltradesize, valid_fulltradesize, NULL,
+    SSET_RULES, SSET_TO_CLIENT,
+    GAME_MIN_FULLTRADESIZE, GAME_MAX_FULLTRADESIZE, GAME_DEFAULT_FULLTRADESIZE,
+    N_("Minimum city size to get full trade"),
+    N_("There is a trade penalty in all cities smaller than this. "
+       "The penalty is 100% (no trade at all) for sizes up to "
+       "notradesize, and decreases gradually to 0% (no penalty except the "
+       "normal corruption) for size=fulltradesize.  This does not apply under "
+       "Democracy.  See also notradesize.") },
+
   { "unhappysize", &game.unhappysize, NULL, NULL,
     SSET_RULES, SSET_TO_CLIENT,
     GAME_MIN_UNHAPPYSIZE, GAME_MAX_UNHAPPYSIZE, GAME_DEFAULT_UNHAPPYSIZE,
@@ -3326,6 +3347,32 @@
     conn_list_iterate_end;
   }
   cmd_reply(CMD_LIST, caller, C_COMMENT, horiz_line);
+}
+
+/**************************************************************************
+  Verify that notradesize is always smaller than fulltradesize
+**************************************************************************/
+static int valid_notradesize(int value, char **reject_message)
+{
+  if (value < game.fulltradesize)
+    return 1;
+
+  *reject_message = _("notradesize must be always smaller than "
+		      "fulltradesize, keeping old value.");
+  return 0;
+}
+
+/**************************************************************************
+  Verify that fulltradesize is always bigger than notradesize
+**************************************************************************/
+static int valid_fulltradesize(int value, char **reject_message)
+{
+  if (value > game.notradesize)
+    return 1;
+
+  *reject_message = _("fulltradesize must be always bigger than "
+		      "notradesize, keeping old value.");
+  return 0;
 }
 
 static int autotoggle(int value, char **reject_message)