"What we need is a model of computation and logic. And with that model, we should be able to model the real world. And we need a model that is time tested."

Immediately followed by:

"The paradigm which ticks all of the boxes in our values list and is time tested is Functional Programming."

Functional programming may indeed be a paradigm that ticks all the boxes. However, the paradigm that first comes to mind when speaking about logic is Logic Programming. If you need a model of computation and logic, how about using logic programming?