Tuesday, April 25, 1967

Moe”, so to s ak, the Premier took the opportunity to phone Mr. Harris in Colorado, on a Wednes ay evening shortly after the meeting, demanding to know when he was going to put more money into Georgetown and if he was gonng to take over the whole operation.

Honourable Alexander B. Campbell: Mr. S aker, this member must be a little more careful of the facts. I have already denied t at I called Mr. Harris in Colorado, I stand by that statement.

J. Cyril Siunott: I made a sli of the tongue, I am sorry, I meant to say he called Mr. Grace in Colorado, not Mr. arris.

‘ Honourable Alexander B. Campbell: I don’t see what the difference is anyway, whether I did or not.

J. Cyril Sinnott: The success of the whole operation was this: you succeeded in discouraging W. R. Grace dz Com any from co-operating with Mr. Moe and you in- sisted that they take over the who e operation themselves, which they refused to do.

Honourable Alexander B. Campbell: You will get your answer, my boy! Carry on it makes a very interesting story here this afternoon.

J. Cyril Sinnott: The second part of that proposal “(1) If the proposal had been accepted and the debts discharged, 100% of the stock of Bathurst Marine Limited and Gulf Garden Foods Limited would be transferred to some third party purchas- ing or the sum of one dollar.

(2) As part of this general agreement between the Norwegian group which the Government had coerced into acting against Moe and the government and Seaboard Trawlers International Limited would be substituted to all the rights and obliga- tions of Gulf Garden Foods Limited in the shipbuilding contract of January 20, 1966. (3) A new Board of Directors for each company would be appointed with nominees of the Norweigian group and the government.” This was the proposition which Mr. Campbell took back to Montreal in reply to Mr. Moe’s letter on January 19th.

Honourable Alexander B. Campbell: Mr. Speaker, it was not the proposal of the Government, it was a proposal made by the Norinvest Financiers to Mr. Moe. We

were only attending for the purpose of assisting in the negotiations, but we were not parties to this proposal.

J. Cyril Sinnott: Well, what were you doing at the meeting?

Honourable Alexander B. Campbell: We were there to assist in the negotia- tions if at all possible.

J. Cyril Sinnott: There’s that word “negotiations” again. These were not ne- gotiations, this was a plot with a Norwegian Investor to get Mr. Moe out, with the threat that the Norwegians would lose their money if they didn’t get him out. It is as simple as that. Now Mr. Moe, not being a stupid fellow by any means, con- sidered this and he made a counter-proposal to the meeting. He made a counter-pro-

osal at the meeting and suggested that 51% of the stock of both companies would be sold for one dollar to any Government nominee. He was willing to sell 51% of his stock in order to get some co—operation. Such sale of 51% of the stock of both companies for one dollar would be conditional upon, and this is where the Govern- ment and the Norwegians were holding the whip hand over Mr. Moe, (a) a release of all guarantees and securities provided in connection with the Norinvest loan to

M. K. International except the second mortgage on the Gulf Garden ships and Bathurst Marine’s guarantee to the extent of $50,000.

Now I don’t think that either the Premier or I can understand all the fin-

ancial involvements of these companies. Maybe the Provincial Secretary can, but I understand Mr. Moe.

Some Member: You don’t understand any of it.

J. Cyril Sinnott: I understand more than you do, though. Mr. Moe obvious- ly gave some guarantees and securities in regard to two loans.

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