Schreiber Returns! Part II: To Sir, With Love

Karlheinz Schreiber returned to the Commons Ethics committee on Tuesday--avec ses notes! As with last Thursday's proceedings, the following is NOT a transcript, so quote at your own risk ;) Time-stamps are approximate. You can return to the beginning of this 'series,' by clicking here: Part I.

To Sir, With Love

11:28 AM
Schreiber: in the late 70s, early 80s, when I came to Montreal, I was invited to meet with Walter Wolf, an entrepreneur in oil biz (and scuba divers off-shore oil rigs). Wolf was close to Sen. Michel Corga (phonetic--sp??) and friends with Mulroney. I also met with Frank Moores--president of the PC party, a man who wanted BM to be PM. I met with both men, who suggested they needed money for the leadership convention, to get BM the PC nomination. I said "fine" because I had previously brought money to conservative parties in Bavaria. I was prepared to help: I met with Mulroney in the Ritz Carleton hotel (Montreal). Mulroney was "charming and, at that time, pretty heavy drinking individual" so we had a "good understanding." Moores explained that all these people have interests in becoming ministers, members of the PMO, etc. when Mulroney [became] PM. Moores' lobbying company starting up: "Alta Nova"; Moores said that his company will do business and make money. I asked, "who will Mulroney work for?" and Moores explained: "after [Mulroney] is PM, he'll have a place with us"
Then...the "Joe Clark thing happened"--Schreiber brought delegates from Montreal to Winnipeg for the convention.
Schreiber: GCI was involved (Moores' company): I want to read something to you, it's a letter dated February 3, 1988 from GCI to Dr. F. du Strauss, Federal Republic of Germany:

Dear Dr. Strauss,
Further to my letter to you of June 5, 1986 (Schreiber notes that he, himself has never seen this 1986 letter), I would like to bring your attention to a situation that has developed regarding the sales of aircraft to Air Canada. As you are aware, the sale of aircraft was successful and proceeded literally as we suggested in the letter to you. The problem that seems to have arrived now is that the German partner of Airbus, contrary to the other partners, has turned down the request for the deficiency guarantee for the potential sale of aircraft to Air Canada. This has created problems that will be (??) and are aware that these guarantees have been provided for countries all over the world and would feel strongly that they would expect equal treatment.
Furthermore, in the case of Air Canada, which is guaranteed by the Canadian government, the deficiency guarantee is, in fact, a mere formality. I believe the sale of the A 320 to Air Canada woul be of much greater significance than just the number of planes involved. First, I believe that the competition would be forced to order Airbus aircraft to be competitive against Air Canada. Second, as a Canadian national airline with landing rights worldwide, it will show that another North American airline has total confidence in Airbus. Third, and probably most importantly, any additional equipment requested by Air Canada will have to come from Airbus because of the (??) of the cockpits and other technologies of which we are aware.
I understand that Aerospecial (sp?) who is the partner responsible for the development of Airbus, has reached an agreement with Canadair of Montreal for the development of equipment for Airbus. The agreement is not only satisfactory to both parties, but has been very welcomed by the government of Canada. Anything you could to to assist with the resolution of the above problem I know would be appreciated by all concerned. In the meantime, best personal regards to you and your family.
Yours sincerely, Frank Moores

Szabo (chair, LPC): we will require a transcript and copies of any documents...
Schreiber: it's all prepared for you today.

11:35 AM
(Schreiber now reads Strauss' response to Moores' letter--March 29, 1988)

Dear Mr. Moores, Thank you for your letter dated Feb 3, 1988 in which you address the issue of an Airbus deficiency guarantee to support the financing of potential A (??) to Air Canada. As to the information received by Deutsche(??) from the German partner in the Airbus program, the discussion between Airbus industry and Air Canada in regard to financing has progressed but has not yet advanced to the stage where Airbus Industry has asked their shareholders for formal approval for an Airbus Industry manufacturers guarantee. So, in fact, your information that the German partner has turned down the request may be based on some misunderstanding. As I've been further informed that the financing discussions between Airbus Industry and Air Canada now are concentrating on the limited residual guarantee to be granted in addition to export credits, this, indeed seems to confirm the (??) deficiency guarantee that is normally huge. Please be assured that there is no reason to put doubt on the preparedness of the German partner to support any Airbus sale, as any of the Airbus partners. Yours sincerely, F. Strauss

Schreiber: this correspondence makes clear, contrary to what is known so far, that this is a relationship between GCI and Airbus. Now I will read to you a letter from GCI to myself in 1999:

Dear Karlheinz Schreiber, Please find enclosed the regional documents received from court--figures obtained from the government regarding expansion into MBB, some calculations that I've made, by definition, have to be best estimates. Best regards, Frank Moores

Schreiber: cost of helicopters but MBB had nothing directly to do with that--it was a company from Fort Erie. But, in order to get sufficient funds, they needed a "project." This will sound strange to you, but the Ministry of Revenue in Bavaria is always a chairman from MBB (??) b/c they are a major shareholder. Exactly this ministry allowed all "helpful donations" for projects. So, this was a measure to satisfy the German Finance Min from the MBB side to deduct expenditures to GCI, so it was a matter--not of *bribing* someone--but merely a method with the Germans (gives both documents to somebody). Also, a commission breakdown from MBB to GCI coast guard (one of the docs??). All of this is known to the German government.
Szabo (chair, LPC): all docs will be made available to the cmte members, translated ASAP. Members, you won't have to rely on your notes.

Coming up next: Part III ("Saudis, Pasta, and the Unstoppable Kim Campbell"), or Return to Part I ("Canada, the Trojan Horse")