7KDWFKHUDQG7KDWFKHULVP
7KDWFKHULVPSURGXFHGGUDPDWLFFKDQJHVLQPRVWDVSHFWVRISXEOLFOLIHERWKLQ %ULWDLQDQGDE...
234 downloads
1130 Views
1MB Size
Report
This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form
7KDWFKHUDQG7KDWFKHULVP
7KDWFKHULVPSURGXFHGGUDPDWLFFKDQJHVLQPRVWDVSHFWVRISXEOLFOLIHERWKLQ %ULWDLQDQGDEURDG7KDWFKHUDQG7KDWFKHULVPVXUYH\VWKHRULJLQVDQGLPSDFW RI7KDWFKHULVPDVDFXOWXUDOFRQVWUXFWDQGDQHFRQRPLFFUHHG&HQWULQJRQWKH FDUHHU RI 0DUJDUHW 7KDWFKHU WKH DXWKRU DUJXHV WKDW 7KDWFKHULVP ZDV D EROG H[SHULPHQWLQLGHRORJLFDOO\GULYHQJRYHUQPHQWWKDWIDLOHGWRPHHWLWVREMHFWLYHV ZKLOHQHYHUWKHOHVVGHFLVLYHO\VKLIWLQJWKHSROLWLFDOODQGVFDSHRI%ULWDLQ 7KDWFKHUDQG7KDWFKHULVPLQFOXGHVGLVFXVVLRQRI
SULYDWLVDWLRQDQGWKHIDWHRIWKHWUDGHXQLRQV %ULWDLQ·V VORZ HFRQRPLF GHFOLQH YHUVXV 7KDWFKHU·V GHOXVLRQV RI %ULWLVK JUDQGHXU WKHOHJDF\RIWKH)DONODQGVDQGRI%ULWDLQ·VDSSURDFKWR(XURSH HGXFDWLRQWKHFLYLOVHUYLFHDQGFULPH WKHSROOWD[ÀDVFR 7KDWFKHU·VOHJDF\DQGLWVLPSDFWRQERWKWKH0DMRUDQG%ODLUJRYHUQPHQWV
7KLV VHFRQG HGLWLRQ KDV EHHQ VXEVWDQWLDOO\ UHYLVHG DQG H[SDQGHG (ULF - (YDQV GUDZV RQ WKH ODWHVW SROLWLFDO PHPRLUV DQG DUFKLYHV IURP WKH 7KDWFKHU )RXQGDWLRQ WR VKHG QHZ OLJKW RQ KHU FDUHHU SULPH PLQLVWHUVKLS DQG IDOO$OVR LQFOXGHGLVDQHZFKDSWHUZKLFKHYDOXDWHVWKHFRQWLQXLQJLQÁXHQFHRI7KDWFKHU DIWHUKHUUHPRYDOIURPSRZHULQ,WGLVFXVVHVWKHH[WHQWWRZKLFKWKH¶1HZ /DERXU SURMHFW· UHSUHVHQWV D FRQWLQXDWLRQ RI 7KDWFKHULWH FHQWUDOLVP E\ RWKHU PHDQV 7KH VHFRQG HGLWLRQ DOVR LQFOXGHV D FULWLFDO GLVFXVVLRQ RI WKH HOHFWLRQ UHVXOWVVLQFHDQGDFKURQRORJ\RINH\HYHQWV (ULF - (YDQV LV 3URIHVVRU RI 6RFLDO +LVWRU\ DQG +HDG RI 'HSDUWPHQW DW WKH 8QLYHUVLW\ RI /DQFDVWHU +LV PDQ\ ERRNV LQFOXGH :LOOLDP 3LWW WKH IRURXURSSRQHQWVWRDUJXH@WKDW RXUHFRQRPLFSROLF\ZDVFDXVLQJVRFLDOEUHDNGRZQDQGYLROHQFH·$OORI WKLVKRZHYHU¶UDWKHURYHUORRNHGWKHIDFWWKDWULRWVIRRWEDOOKRROLJDQLVP DQGFULPHJHQHUDOO\KDGEHHQRQWKHLQFUHDVHVLQFHWKHVPRVWRI WKHWLPHXQGHUWKHYHU\HFRQRPLFSROLFLHVWKDWRXUFULWLFVZHUHXUJLQJXV WRDGRSW·:KHQVKHYLVLWHGWKHULRWDUHDRI7R[WHWKLQ/LYHUSRROLQ-XO\ VKHQRWHGWKDWLWVKRXVLQJFRQGLWLRQVZHUHQRWWKHZRUVWLQWKHFLW\ ¶ZDV@JLYHQE\WHOHYLVLRQWKDWULRWHUVFRXOGHQMR\D ÀHVWDRIFULPHORRWLQJDQGULRWLQJLQWKHJXLVHRIVRFLDOSURWHVW·+HU YLHZV GHSUHVVHG WKH SURIHVVLRQDOV$WWHPSWV WR SXW WKHP LQWR SUDFWLFH IDLOHGPLVHUDEO\\HWWKHUHLVQRHYLGHQFHWKDWWKH\GLGKHUDQ\WKLQJEXW HOHFWRUDO JRRG 'HVSLWH DOO HPSLULFDO HYLGHQFH WKDW7KDWFKHU·V SROLFLHV IDLOHGWRZRUNFULPHUHPDLQHGD¶7RU\·LVVXHWKURXJKRXWWKH7KDWFKHU \HDUV2QHFULPLQRORJLVWVXPPHGXSWKHIUXVWUDWLRQVDQGEHPXVHPHQW RIDQHQWLUHSURIHVVLRQ WKH &RQVHUYDWLYH SDUW\ UHWDLQV LWV VXSUHPDF\ DV WKH SDUW\ RI ¶ODZDQGRUGHU·,WKDVPDQDJHGWRSHUVXDGHDODUJHVHFWLRQRIWKH HOHFWRUDWHWKDWWKHULVLQJWLGHRIFULPHLVQRWWREHH[SODLQHGE\WKH ZLGHQHGGLYLGHEHWZHHQULFKDQGSRRUWKHXQGHUPLQLQJRISXEOLF JRRGVDQGVHUYLFHVWKHHPDVFXODWLRQRIORFDOJRYHUQPHQWDQGWKH ODXGLQJRIFRPSHWLWLYHLQGLYLGXDOLVPWRWKHGHWULPHQWRIFROOHFWLYH UHVSRQVLELOLW\5DWKHUFULPHLVWREHDVFULEHGWRHYLOLQGLYLGXDOV JHQHUDOO\\RXQJSHUVRQVVXEMHFWWRLQVXIÀFLHQWFRQWUROE\SDUHQWV ZKRKDYHDGXW\WRSROLFHWKHLUEHKDYLRXU :KDWLVWKHEDODQFHVKHHWIURP7KDWFKHU·VDWWDFNRQWKHSURIHVVLRQDO
7KHDWWDFNRQWKHSURIHVVLRQDOHWKLF HWKLF" 7ZR FRQWUDGLFWRU\ FRQFOXVLRQV VXJJHVW WKHPVHOYHV )LUVW VKH VXFFHHGHGLQSXVKLQJWKURXJKDOPRVWDOORIKHUPDLQREMHFWLYHV,QGR LQJVRDQGDJDLQDVLQWHQGHGVKHVKRRNWKHSURIHVVLRQDOVXSFDXVLQJ IXQGDPHQWDOUHDSSUDLVDOVRIREMHFWLYHVDQGYDOXHV0RVWRIKHUFKDQJHV IXUWKHUPRUH VWXFN LQWR WKH V7KH FXOWXUH RI SHUIRUPDQFH LQGLFD WRUVDQGOHDJXHWDEOHPHDVXUHPHQWVUHPDLQHGDUDPSDQWO\EHVPLUFKLQJ DVSHFWRIOLIHXQGHU1HZ/DERXUDIWHU*LYHQWKHYLUXOHQWRSSRVL WLRQWKDW7KDWFKHU·VLQQRYDWLRQVHQFRXQWHUHGDWWKHWLPHWKHLUGXUDELOLW\ UHSUHVHQWV D VXEVWDQWLDO DFKLHYHPHQW /HIW WR WKH SURIHVVLRQDOV IHZ LI DQ\RIWKHNH\FKDQJHVGLVFXVVHGLQWKLVFKDSWHUZRXOGKDYHFRPHDERXW $VZLWKVRPXFKRIKHUOHJDF\ÁDZHGDQGFRQWURYHUVLDODOWKRXJKLWKDV EHHQIHZVSRNHLQWKHVRIGLVPDQWOLQJLW6KHUHVKDSHGWKHDJHQGD 6HFRQGKRZHYHUVKHVHHPVWRKDYHRYHUORRNHGWKHFUXFLDOSRLQWWKDWWKH VHUYLFHVHFWRURIDQHFRQRP\LVQHFHVVDULO\ODERXULQWHQVLYH7KHPRUDOH RI LWV ODERXU IRUFH LV LQ FRQVHTXHQFH FUXFLDO 0RVW RI WKH FKDQJHV DOLHQDWHGPRVWRIWKHSURIHVVLRQDOVWKH\DIIHFWHG)RUWKRVHFDOOHGXSRQ WR ¶GHOLYHU· WKH QHZ VHUYLFHV WKH UHJXODU FRQVHTXHQFHV ZHUH ORQJHU ZRUNLQJKRXUVDQGKLJKHUVWUHVVOHYHOV(YHQWKHODQJXDJHKDVFKDQJHG 1+6WUXVWPDQDJHUVQRZURXWLQHO\¶GHOLYHU·KHDOWKFDUHZKLOHWHDFKHUV ¶GHOLYHU· DFDGHPLF RU YRFDWLRQDO FRXUVHV ² PXFK DV PLONPHQ XVHG WR GHOLYHUPLON7KHODQJXDJHRIWKHPDUNHWSODFHKDVVHHSHGLQVLGLRXVO\ DQGPDOLJQDQWO\LQWRSURIHVVLRQDOSDUODQFH $FKLHYHPHQWKDVEHHQOHVVLPSUHVVLYHWKDQWKHVFDOHRILQQRYDWLRQ 1HZDSSURDFKHVIDLOHGWRUHGXFHOHYHOVRIFULPHLQWKH7KDWFKHU\HDUV 7KH1+6ZDVIXQGDPHQWDOO\UHPRGHOOHGDORQJEXVLQHVVOLQHVDOWKRXJK QHLWKHUWRLWVEHQHÀWQRUWRWKHOLNLQJRILWVXVHUV²RU¶FOLHQWV·DVWKH\ ZHUHVRPHWLPHVFDOOHG6XUSULVLQJO\SHUKDSVWKHHGXFDWLRQDOHVWDEOLVK PHQW ZRQ PRUH EDWWOHV WKDQ WKH PHGLFDO HVWDEOLVKPHQW DOWKRXJK RQ PDWWHUV RI GHWDLO QRW EURDG SROLF\ 6FKRROV HQFRXUDJHG WR RSHUDWH DV VPDOOEXVLQHVVHVEHJDQWRDGYHUWLVHWKHLUZDUHVLQJORVV\DQGH[SHQVLYH EURFKXUHV ZKLFK IRU VRPH WDNH EXGJHW SUHFHGHQFH RYHU WH[WERRNV 6XFFHVVIXO WHDFKHUV KDYH EHHQ HQFRXUDJHG HYHQ UHTXLUHG WR HQURO RQ ÀQDQFHDQGEXVLQHVVDGPLQLVWUDWLRQFRXUVHV3URPRWLRQWHQGVWRPHDQ PRUHWLPHVHOOLQJVHUYLFHVRUPDQDJLQJEXGJHWVDQGPXFKOHVVWHDFKLQJ FKLOGUHQ6FKRROVLQFUHDVLQJO\FRPSHWHZLWKRQHDQRWKHURYHU¶LQWDNH· 7KH VWDWXV RI RUGLQDU\ VFKRRO WHDFKHUV OLNH WKH UHDO YDOXH RI WKHLU VDODULHV KDV GHFOLQHG$V LQ WKH KHDOWK VHUYLFH HDUO\ UHWLUHPHQW SDFN DJHVKDYHEHHQHDJHUO\VRXJKWZKLOHDVHQVHRIEHLQJXQGHUYDOXHGKDV EHFRPHSHUYDVLYH,IWKHSURIHVVLRQVZHUHWDPHGE\7KDWFKHULVPWKHQ WKLVZDVDWVXEVWDQWLDOFRVWLQERWKKXPDQDQGHFRQRPLFWHUPVDQGWR OLWWOHGLVFHUQLEOHEHQHÀW
7KDWFKHUDEURDG,
(XURSH
3(5&(37,216$1'&217(;7 7KDWFKHU·VODFNRINQRZOHGJHDERXWWKHLQWULFDFLHVRIIRUHLJQDIIDLUVZDV D PDMRU UHDVRQ ZK\ PDQ\ VHQLRU &RQVHUYDWLYHV XQGHUHVWLPDWHG KHU LQ WKHHDUO\\HDUVRIKHUOHDGHUVKLS$OWKRXJKVKHWUDYHOOHGDEURDGUHJXODUO\ ZKLOH OHDGHU RI WKH 2SSRVLWLRQ KHU EDFNJURXQG HGXFDWLRQ DQG HDUOLHU SROLWLFDOH[SHULHQFHKDGJLYHQKHUQRQHRIWKDWEUHDGWKRIYLVLRQWKDWKHU &RQVHUYDWLYHSUHGHFHVVRUVHQMR\HG$V(GXFDWLRQ6HFUHWDU\LQWKH+HDWK JRYHUQPHQWVKHDFTXLUHGQRH[SHULHQFHLQIRUHLJQDIIDLUV6KHZDVQRW DOLQJXLVWDQGWHQGHGWREHVXVSLFLRXVRIIRUHLJQHUVÀUVWEHFDXVHIRUD IURQWUDQNLQJSROLWLFLDQVKHGLGQRWNQRZPDQ\RIWKHPDQGVHFRQGEH FDXVHVKHXVXDOO\FRXOGQRWVSHDNWKHLUODQJXDJH+HUVLPSOHSDWULRWLVP ZDVQRXULVKHGPXFKPRUHLQWKH(DVW0LGODQGVDQGWKH+RPH&RXQWLHV WKDQWKURXJKWKRVHEURDGHULPSHULDOFRQWDFWVWKDWZHUHSDUWRIWKHIDPLO\ FRQQHFWLRQVRIDOOKHUSUHGHFHVVRUVH[FHSW(GZDUG+HDWK$WWKHEHJLQ QLQJRIKHUSUHPLHUVKLSVKHZDVLQIDFWDOLWWOH(QJODQGHU :KDWZDV%ULWDLQ·VSRVLWLRQLQZRUOGDIIDLUVZKHQ7KDWFKHUEHFDPH 3ULPH 0LQLVWHU" ,W LV WHPSWLQJ WR FKDUDFWHULVH LW LQ WHUPV RI UDPSDQW GHFOLQH%ULWDLQKDGDIWHUDOOJLYHQXSDOPRVWDOORILWVHDUO\WZHQWLHWK FHQWXU\HPSLUHWKDWODUJHVWDJJORPHUDWLRQRIWHUULWRULHVXSRQZKLFK¶WKH VXQ QHYHU VHW· DQG ZKLFK KDG EHHQ WKH VRXUFH RI VXFK SDWULRWLF SULGH 7KH¶UHWUHDWIURP(PSLUH·ZDVLQIDFWDPRUHSURWUDFWHGDIIDLUWKDQLV RIWHQUHDOLVHGDOWKRXJKFHGLQJLQGHSHQGHQFHWRZKDWKDGRQFHEHHQWKH ¶EODFNHPSLUH·WRRNSODFHODUJHO\RYHUDWZHQW\\HDUSHULRGIURPWKHODWH V WR WKH ODWH V7KH SURFHVV RI DGMXVWPHQW ZDV WKHUHIRUH DQ DEUXSWRQHWKHPRUHVRVLQFH%ULWDLQKDGEHHQODJJDUGLQPRYHVWRZDUGV FUHDWLQJFORVHU WLHV ZLWK (XURSH:KHQ %ULWDLQZDV LQYLWHGLQ WR SDUWLFLSDWHLQQHJRWLDWLRQVWKDWZRXOGOHDGLQWRWKHHVWDEOLVKPHQW RID¶&RPPRQ0DUNHW·RIVL[OHDGLQJZHVWHUQ(XURSHDQSRZHUVLQFOXG LQJ)UDQFHDQG*HUPDQ\LWKHOGDORRI7KH&KDQFHOORURIWKH([FKHTXHU
7KDWFKHUDEURDG, 5$ %XWOHU DUJXHG WKDW %ULWDLQ VKRXOG UHPDLQ LQYROYHG LQ IUHH WUDGH LQLWLDWLYHV RQO\ 3URSRVDOV IRU ¶WKH FUHDWLRQ RI D FRPPRQ RUJDQLVDWLRQ IRUWKHSHDFHIXOGHYHORSPHQWRIDWRPLFHQHUJ\DQGWKHHVWDEOLVKPHQWRI DFRPPRQPDUNHWLQ(XURSHVHHPHGOLNHO\WRLQYROYHGXSOLFDWLRQZLWK RWKHUDUUDQJHPHQWVRUZHUHIUDXJKWZLWKVSHFLDOGLIÀFXOWLHV·&XOWXUDOO\ DQGHPRWLRQDOO\FORVHUOLQNVZLWKWKH(PSLUHVWLOOVHHPHGIRUPDQ\D PRUHHOLJLEOHDOWHUQDWLYHWKDQFORVHUUHODWLRQVZLWK(XURSH 3HUFHSWLRQVFKDQJHGDVLPSHULDOSRVVHVVLRQVGZLQGOHGDQGWKH((& HVWDEOLVKHG LWVHOI DV IRUPLGDEOH RUJDQLVDWLRQ ZLWK JUHDW SRWHQWLDO IRU IXWXUHGHYHORSPHQW$VHDUO\DVXQGHU0DFPLOODQ%ULWDLQPDGH HIIRUWV WR MRLQ DQ RUJDQLVDWLRQ RI ZKLFK LW FRXOG KDYH EHHQ D OHDGLQJ ²LIQRWWKHGRPLQDQW²SDUWQHUIRXURUÀYH\HDUVHDUOLHU+RZHYHUERWK KLVDSSOLFDWLRQDQGWKDWRI+DUROG:LOVRQLQIHOOIRXORIDYHWRE\ WKH)UHQFK3UHVLGHQW&KDUOHVGH*DXOOHZKRIHDUHGWKDW%ULWLVKHQWU\ ZRXOG PDVVLYHO\ DQG GDQJHURXVO\ LQFUHDVH 86 LQÁXHQFH LQ (XURSH 'H*DXOOH·VIHDUVZHUHQRWLUUDWLRQDO$V:LQVWRQ&KXUFKLOOKDGQRWHG LQ %ULWDLQ·V RYHUVHDV LQWHUHVWV FRXOG EH UHSUHVHQWHG DV WKUHH LQ WHUOLQNHG FLUFOHV ² WKH %ULWLVK (PSLUH DQG &RPPRQZHDOWK WKH ZLGHU (QJOLVKVSHDNLQJZRUOGDQGZKDWKHFDOOHGD¶8QLWHG(XURSH·LQUHDOLW\ DQWLFRPPXQLVWZHVWHUQ(XURSHZKLFKZDVEHLQJVXSSRUWHGHFRQRPL FDOO\DQGPLOLWDULO\E\86DLG$WOHDVWXQWLOWKHVLWZRXOGKDYH EHHQ D VPDOO PLQRULW\ RI %ULWLVK SHRSOH ZKR FRQVLGHUHG WKH (XURSHDQ ¶FLUFOH· DV LPSRUWDQW DV WKH RWKHU WZR 1HYHUWKHOHVV WKH GHFOLQH RI (PSLUHDQGVRPHVKDUSOHVVRQVIURPWKH8QLWHG6WDWHVQRWOHDVWRYHULWV ODFNRIVXSSRUWIRUWKH$QJOR)UHQFKLQYDVLRQRI6XH]LQ WKDWWKH VRFDOOHG¶VSHFLDOUHODWLRQVKLS·ZLWK%ULWDLQVKRXOGQRORQJHUEHFRQVLG HUHGDQHTXDORQHSURPRWHGDGHDORITXHUXORXVLQWURVSHFWLRQ ,W ZDV RI FRXUVH GXULQJ (GZDUG +HDWK·V JRYHUQPHQW WKDW %ULWDLQ VLJQHGWKH7UHDW\RI$FFHVVLRQWRWKH&RPPRQ0DUNHWLQ-DQXDU\ EHFRPLQJ D IXOO PHPEHU RI WKH (XURSHDQ (FRQRPLF &RPPXQLW\ RQ -DQXDU\$OWKRXJKVKHKDGQRGLUHFWLQYROYHPHQWLQWKHQHJRWLD WLRQV7KDWFKHUZDVDPHPEHURIWKH&RQVHUYDWLYHJRYHUQPHQWWKDWWRRN %ULWDLQLQWR(XURSH $V7KDWFKHU·VUHODWLRQVKLSZLWK(XURSHZDVVRIUDXJKWIRUPXFKRIWKH VLWLVZRUWKUHPHPEHULQJWKDW(GZDUG+HDWK²WHPSHUDPHQWDOO\ PXFK PRUH (XURSHDQ LQFOLQHG WKDQ VKH ² QHYHUWKHOHVV KDG KLV EDWWOHV ZLWKKLVQHZSDUWQHUV+HZDVXQDEOHWRGRDQ\WKLQJWRXQVWLWFKDQDU URZO\SURWHFWLYHXQFRPSHWLWLYH&RPPRQ$JULFXOWXUDO3ROLF\GHVLJQHG WREHQHÀW)UHQFKSHDVDQWIDUPHUVPRUHWKDQDQ\RQHHOVH:HOODZDUHRI ZKDWDGLYLVLYHLVVXH(XURSHZDVIRUERWKPDMRUSROLWLFDOSDUWLHVKHSXU VXHGHFRQRPLFREMHFWLYHV²QRWOHDVWLQWKHÀHOGRIUHJLRQDOGHYHORSPHQW ² PXFK PRUH WKDQ KH GLG FRPPRQ VRFLDO RU WHFKQRORJLFDO RQHV 7KLV
7KDWFKHUDEURDG, ZDVOLNHO\WREDFNÀUHÀUVWEHFDXVHWKHVSHFWDFXODUJURZWKRI(XURSHDQ PDUNHWV ZDV VORZLQJ LQ WKH ZDNH RI WKH RLO FULVHV RI WKH HDUO\ V DQG VHFRQG EHFDXVH WKH JRYHUQPHQW·V HYLGHQW ODFN RI ZKROHKHDUWHG HQWKXVLDVPIRU(XURSHDQGHYHORSPHQWVUDQNOHGZLWKPDQ\FRQWLQHQWDO SROLWLFLDQV VRPH RI ZKRP UHÁHFWHG WKDW %ULWLVK EHKDYLRXU ZDV UHWUR VSHFWLYHO\ YDOLGDWLQJ GH *DXOOH·V GHFLVLRQ WR EORFN %ULWLVK HQWU\ :HOO EHIRUH0DUJDUHW7KDWFKHU·VKDQGEDJEHJDQVZLUOLQJDURXQGWKHFRXQFLO FKDPEHUVRI(XURSH%ULWDLQZDVHVWDEOLVKHGDVDQ¶DZNZDUGFXVWRPHU· RU ¶QRQFRPPXQLWDLUH· 7KDWFKHU GLG QRW FUHDWH VFHSWLFLVP DERXW WKH YDOXHRIFORVHUOLQNVZLWK(XURSHDQSDUWQHUVEXWVKHZDVWRH[SORLWLWWR GHYDVWDWLQJDQGGDPDJLQJHIIHFW 7+((8523($1/($51,1*&859( ,WLVVLJQLÀFDQWWKDW7KDWFKHUZDQWHGWROHDUQDERXW¶DEURDG·IRUKHUVHOI DQGIURPKHURZQSHUVSHFWLYH6KHZDVQRWLFHDEO\FRRODERXW)RUHLJQ 2IÀFH EULHÀQJV DQG VKH GLG QRW DOZD\V WUXVW KHU )RUHLJQ 6HFUHWDULHV WR DGYDQFH %ULWLVK LQWHUHVWV +HU ÀUVW 6KDGRZ )RUHLJQ 6HFUHWDU\ ZDV 5HJLQDOG0DXGOLQJZKRVRRQFRPSODLQHGRIEHLQJLJQRUHG 7KHSUREOHPZDVWKDWFRQWDFWEHWZHHQXVZDVYHU\OLWWOH,DVNHG WRJRZLWKKHURQKHUYDULRXVYLVLWVRYHUVHDVEXW,ZDVFRXUWHRXVO\ UHIXVHG:KDWZDVPRUHGLIÀFXOWVWLOOZDVKHUPHWKRGRISUR GXFLQJVSHHFKHVRQIRUHLJQDIIDLUV,ZDVQRWFRQVXOWHGLQDGYDQFH DERXWZKHWKHUVKHVKRXOGPDNHDVSHHFKRQIRUHLJQSROLF\DWDQ\ JLYHQWLPH 7KDWFKHU WRRN WKH ÀUVW RSSRUWXQLW\ WR VDFN 0DXGOLQJ ZKRVH ODQ JXLG VXSHULRU LQGROHQFH VKH IRXQG DV LQVXIIHUDEOH DV KLV OHIWFHQWUH &RQVHUYDWLYH YLHZV %XW HYHQ ZLWK DGYLVHUV DQG PLQLVWHUV LQ ZKRP VKHUHSRVHGJUHDWHUFRQÀGHQFHVKHZDVDOZD\VOLNHO\WRDQQRXQFHRU FKDQJHSROLF\ZLWKRXWFRQVXOWDWLRQ,QIRUHLJQDIIDLUVPXFKPRUHWKDQ LQHFRQRPLFSROLF\VKHZDVSURQHWRVKRRWIURPWKHKLS 6KH DOVR PDGH QR VHFUHW RI WKH IDFW WKDW VKH KDG OLWWOH WLPH IRU WKH pOLWHFRUSVRIWKH)RUHLJQ2IÀFH6KHEHOLHYHGWKDWWKH)RUHLJQ2IÀFH WRRIUHTXHQWO\DFWHGDVLILWZHUHVHSDUDWHIURPLQGHHGVXSHULRUWRRWKHU EUDQFKHV RI JRYHUQPHQW 6XFFHVVLYH )RUHLJQ 6HFUHWDULHV LQ KHU YLHZ KDGEHHQZUDSSHGE\WKHLUFLYLOVHUYDQWVLQDVLONHQEXUHDXFUDF\,QKHU YLHZZKLOHWKH\ZHUHWDXJKWWKHLQWULFDFLHVDQGP\VWLTXHVRIGLSORPDF\ WKH\ZHUHWRRLQFOLQHGWRVHOO%ULWDLQVKRUW)RUHLJQ2IÀFHRUWKRGR[\ZDV FXOWXUDOO\ LQFOLQHG WR SUHYDULFDWLRQ DQG WR FRQVHQVXV 6KH WKXV ORRNHG IRU HYHU\ RSSRUWXQLW\ WR FOLS )RUHLJQ 2IÀFH ZLQJV ,Q WHUPV RI EURDG
7KDWFKHUDEURDG, VWUDWHJ\VKHZDVKHURZQ)RUHLJQ6HFUHWDU\2YHU$QJOR$PHULFDQUHOD WLRQVRYHUWKH)DONODQGV:DUVHH&KDSWHU DQGRYHUQHJRWLDWLRQZLWK WKH((&VKHLQYDULDEO\WRRNWKHOHDG'XULQJFRPSOH[QHJRWLDWLRQVZLWK WKH ((& LQ RYHU D ÀQDQFLDO UHEDWH IRU H[DPSOH VKH SDFNHG KHU )RUHLJQ6HFUHWDU\RIIWR%UXVVHOV¶3HWHU&DUULQJWRQKDYLQJUHFHLYHGKLV PDQGDWHIURPPH·ZDVKRZVKHODWHUGHVFULEHGWKHLQFLGHQWLQDW\SLFDO SDVVDJH IURP KHU PHPRLUV *HRIIUH\ +RZH KHU )RUHLJQ 6HFUHWDU\IRU VL[\HDUVIURPWRERWKDOHVVFRQÀGHQWDQGLQGLSORPDWLF WHUPVDQLQÀQLWHO\OHVVH[SHULHQFHGÀJXUHWKDQ&DUULQJWRQDOVRSOD\HG VHFRQGÀGGOHDOWKRXJKLWKDVEHHQVXJJHVWHGWKDW7KDWFKHUORVWIDLWKLQ KLPEHFDXVHKHKDGEHFRPH¶D)RUHLJQ2IÀFHPDQ· 7KDWFKHUZDVDOVRDYHUVHWRZRUNLQJIURP)RUHLJQ2IÀFHEULHIV2QH RIWKHPRVWVLJQLÀFDQWIRUHLJQSROLF\VWDWHPHQWVRIWKH7KDWFKHU\HDUV ²KHU%UXJHVVSHHFKRI6HSWHPEHUVHHEHORZ ²ZDVGUDIWHGE\ KHU SULYDWH VHFUHWDU\ &KDUOHV 3RZHOO DQG QRW E\ WKH )RUHLJQ 2IÀFH 7KHVLONHQVNLOOVRI3RZHOOZHUHDQH[WUDRUGLQDULO\XVHIXOFRPSOHPHQW WR7KDWFKHU·VPRUHDEUDVLYHVW\OH²QRWOHDVWEHFDXVHZKDWHYHUKHPD\ KDYHWKRXJKWSULYDWHO\3RZHOOSURYHGDQHQWLUHO\OR\DODUWLFXODWRURIKHU SUHMXGLFHV7KHREVHUYDWLRQWKDWLQIRUHLJQDIIDLUVDWOHDVWKHRSHUDWHG PRUHDV'HSXW\3ULPH0LQLVWHUWKDQDVSULYDWHVHFUHWDU\KDGPRUHWKDQ DJUDLQRIWUXWK 0DUJDUHW7KDWFKHU·VREMHFWLYHVDQGPHWKRGVLQIRUHLJQDIIDLUVZHUH FKDUDFWHULVWLFDOO\ VWUDLJKWIRUZDUG VKH SXW %ULWDLQ·V LQWHUHVWV DV VKH LQWHUSUHWHGWKHPÀUVWDQGKHUZD\VFRXOGEHMDUULQJO\GLUHFW6KHQRWHG DOPRVWWULXPSKDOO\FRQFHUQLQJRQHRIPDQ\IUDXJKWQHJRWLDWLRQVZLWK &RPPRQ0DUNHWSDUWQHUV¶,NQRZQRWKLQJDERXWGLSORPDF\EXW,MXVW NQRZDQGEHOLHYHWKDW,ZDQWFHUWDLQWKLQJVIRU%ULWDLQ·7KH¶FHUWDLQ WKLQJV·VKHZDQWHGDERYHDOOZHUHWKUHHLQFUHDVHGUHVSHFWIRU%ULWDLQDV DOHDGLQJSRZHULQSRVVHVVLRQRIERWKQXFOHDUZHDSRQVDQGDSHUPDQHQW LIDQDFKURQLVWLF VHDWRQWKH6HFXULW\&RXQFLORIWKH8QLWHG1DWLRQVD FORVHDOOLDQFHZLWKWKH8QLWHG6WDWHVDQGSUHWHQVLRQVWRFORVHU(XURSHDQ XQLW\SXWÀUPO\LQWKHLUSODFH 7KH NH\ WR XQGHUVWDQGLQJ7KDWFKHU·V IRUHLJQ SROLF\ LV WKDW VKHZDV SURQHWRUHJDUG$PHULFDQVDVKRQRUDU\(QJOLVKPHQVLF DQG(XURSHDQV DV UHDO IRUHLJQHUV +HU HDUO\ YLVLWV WR WKH 8QLWHG 6WDWHV LQ DQG KDGJRQHGRZQZHOOZLWKKRVWVZKRVKDUHGKHUXQUHVWUDLQHGIUHH PDUNHWLGHDV,WZDVFKDUDFWHULVWLFWKDWVKHLPPHGLDWHO\EURNHZLWKWKH GLSORPDWLFFRQYHQWLRQWKDWOHDGHUVRIRSSRVLWLRQSDUWLHVGRQRWRSHQO\ FULWLFLVHWKHJRYHUQPHQWZKHQRQIRUHLJQVRLO7KDWFKHUZDVQRGLSORPDW DQG ZKHQ FKDOOHQJHG UREXVWO\ UHWRUWHG WR WKH WKHQ 3ULPH 0LQLVWHU -DPHV&DOODJKDQWKDW¶,W·VQRWSDUWRIP\MREWREHDSURSDJDQGLVWIRUD VRFLDOLVWVRFLHW\·6KHIRUPHGDQLQVWDQWUDSSRUWZLWK+HQU\.LVVLQJHU
7KDWFKHUDEURDG, LQDQGDVVHUWHGSHUKDSVSUHPDWXUHO\WKDW¶,IHHOWKDW,KDYHEHHQ DFFHSWHGDVDOHDGHULQWKHLQWHUQDWLRQDOVSKHUH· ¶07KHEHVWLVWKHHQHP\RIWKHJRRG@ 6KHKDGJDLQHGUDUHDSSURYDOLQ(XURSHLQIRUVLJQLQJ%ULWDLQXS WRWKH6LQJOH(XURSHDQ$FWZKLFKZRXOGSURYLGHDIUHHLQWHUQDOPDUNHW
7KDWFKHUDEURDG, LQYROYLQJXQUHVWULFWHGPRYHPHQWRIJRRGVODERXUDQGFDSLWDOE\ 6KHZDQWHGWRH[SORLWWKHRSSRUWXQLW\WRJDLQIXUWKHUFRQFHVVLRQVUDWKHU WKDQ ZDVWH LW E\ WLOWLQJ DW DQ XQFKDOOHQJHDEOH &RPPXQLW\ LFRQ 7KH UHVXOWZDVDQDJUHHPHQWDW%UXVVHOVLQ)HEUXDU\RQDSDFNDJHRI PHDVXUHV ² LQFOXGLQJ DXWRPDWLF SULFH FXWV EH\RQG FHUWDLQ SURGXFWLRQ OHYHOV²ZKLFKUHGXFHGDJULFXOWXUDOVXUSOXVHVDQGFRQÀUPHGVXEVWDQWLDO UHEDWHVWR%ULWDLQ 7KH SDUDGR[ RI 7KDWFKHU·V GHFLVLRQ RYHU WKH 6LQJOH (XURSHDQ $FW VKRXOGQRWJRXQUHPDUNHG7KHPRVWVWULGHQWO\DQWL(XURSHDQRI%ULWLVK SRVWZDU3ULPH0LQLVWHUVDFTXLHVFHGLQ(XURSHDQOHJLVODWLRQZKLFKE\ TXDOLÀHGPDMRULW\YRWLQJZRXOGRYHUULGHWKHSUHIHUHQFHVDQGSROLFLHV RI GHPRFUDWLFDOO\ HOHFWHG QDWLRQDO JRYHUQPHQWV$V RQH FRPPHQWDWRU KDVREVHUYHG WKH6LQJOH(XURSHDQ$FWDFFHOHUDWHGWKHSURFHVVWRZDUGVZLGHU (XURSHDQLQWHJUDWLRQXOWLPDWHO\OHDGLQJWRWKH0DDVWULFKW7UHDW\ LQ DQG WKH HVWDEOLVKPHQW RI D VLQJOH (XURSHDQ FXUUHQF\ LQ WZRLVVXHVZKLFKGLGVRPXFKWRFUHDWHWKHGLYLVLYHIDFWLRQ DOLVPZLWKLQWKH7RU\3DUW\ 7KH$FWZDVQRGHDGOHWWHU1XPHURXV(XURSHDQ¶GLUHFWLYHV·IROORZHGRQ DUDQJHRIHFRQRPLFDQGVRFLDOLVVXHVLQFOXGLQJKHDOWKVDIHW\KROLGD\ HQWLWOHPHQW DQG WKH PD[LPXP OHQJWK RI WKH ZRUNLQJ ZHHN )RU ULJKW ZLQJ ¶(XURVFHSWLFV· LQ WKH &RQVHUYDWLYH 3DUW\ RI WKH PLGV WKLV GHJUHHRILQWHUYHQWLRQUHSUHVHQWHGDIDWDOFRPSURPLVHZLWKWKHSULQFLSOH RIQDWLRQDOVRYHUHLJQW\,WLVKDUGO\VXUSULVLQJWKDWWKH\ZHUHWRRHPEDU UDVVHGWRSODFHWKHEODPHIRUWKLV¶WUHDVRQ·ZKHUHLWSURSHUO\OD\²ZLWK 0DUJDUHW7KDWFKHU 7KHODVWWZR\HDUVRI7KDWFKHU·VSULPHPLQLVWHUVKLSZHUHDOOGRZQKLOO LQ (XURSHDQ DV LQ RWKHU ZD\V VHH &KDSWHU 7KH HQRUPLWLHV RI WKH &$3 KDG VSXUUHG D ULJKWZLQJ JURXS RI DERXW VHYHQW\ &RQVHUYDWLYH 03VWRIRUPD¶(XURSHDQ5HIRUP*URXS·7KHWLWOHZDVPLVOHDGLQJ7KH JURXS UHDOO\ ZDQWHG WR ZUHFN UDWKHU WKDQ UHIRUP ,WV SURIRXQGO\ DQWL (XURSHDQLVPUHRSHQHGGHHSZRXQGVZLWKLQWKHSDUW\7HPSHUDPHQWDOO\ 7KDWFKHU ZDV DV DQWL(XURSHDQ DV PRVW 3ROLWLFDOO\ VKH NQHZ WKDW VKH QHHGHGWRPDLQWDLQDSDUW\EDODQFHDOWKRXJKWKLVZDVEHFRPLQJLQFUHDV LQJO\GLIÀFXOW)XUWKHUPRUHGXULQJKHU\HDUVLQSRZHUVKHKDGIRUJHG XVHIXO OLQNV ZLWKLQ (XURSH QRWDEO\ ZLWK WKH *DXOOLVW 3ULPH 0LQLVWHU -DFTXHV&KLUDF3HUVRQDOFRQWDFWHYHQWXDOO\VPRRWKHGRXWVRPHRIWKH URXJKHUHGJHVRIKHUDQWL(XURSHDQLVP
7KDWFKHUDEURDG, %58*(6$1'%(ZKLOH@PDQLSXODWLQJDQGGRPLQDWLQJWKHFRPPXQLW\LVVXHV· ,QDOOWKLVVKHDOVRUDQJUHVRQDQWFKRUGVZLWK¶KHU·SHRSOHDWKRPH 6KH EHOLHYHG WKDW PRVW RI WKH )UHQFK DQG *HUPDQ PLQLVWHUV ZLWK RU DJDLQVWZKRPVKHZRUNHGKDGDJHQGDVMXVWDVQDUURZO\QDWLRQDOLVWDV KHURZQ2QO\WKHLUORQJHUPHPEHUVKLSRIWKH&RPPXQLW\ZKLFKKDG HQDEOHGWKHPWRLQFRUSRUDWHWKHLUFRXQWULHV·RZQSULRULWLHVLQWRLWVVWUXF WXUHGXULQJWKHVDQGVPDGHWKHPVHHPPRUHSUR(XURSHDQ %ODWDQW UXGHQHVV DQG GLVGDLQ IRU WKH FRQYHQWLRQV RI GLSORPDF\ VKH H[FXVHGDVEULQJLQJZHOFRPHGLUHFWQHVVDQGKRQHVW\WRWKHQHJRWLDWLQJ WDEOH$VHQLRU)UHQFKGLSORPDWGLVPLVVHG7KDWFKHUWKXV 7KDWZRPDQLVDQROGIDVKLRQHGQDWLRQDOLVWZLWKQRIHHOLQJIRUWKH (XURSHDQLGHDO6KHUHFNRQVPHUHO\LQWHUPVRIDFFRXQWDQF\QRW WKHEURDGHUSROLWLFDOYLVLRQWKDWLVQHHGHG6HHQIURP3DULVWKH %ULWLVKJRYHUQPHQWDSSHDUVWRH[SUHVVOLWWOHEHOLHILQWKHQHHGWR GHYHORSWKH&RPPXQLW\·VLQVWLWXWLRQV 7KDWFKHU VDZ ZKDW WKH GLSORPDW FOHDUO\ LQWHQGHG WR EH D VWLQJLQJ UHEXNH LQ TXLWH GLIIHUHQW WHUPV 7KH ¶(XURSHDQ LGHDO· VKH UHJDUGHG DV KXPEXJ ¶DFFRXQWDQF\· LV FUXFLDO WR JRRG PDQDJHPHQW LQ WKH QDWLRQ VWDWH MXVW DV QDWXUDOO\ DV LQ WKH KRPH WRR PDQ\ RI WKH ¶&RPPXQLW\·V LQVWLWXWLRQV·²QRWOHDVWWKHDSSDOOLQJ&$3²QHHGHGGHUDFLQDWLRQUDWKHU WKDQ¶GHYHORSPHQW·$VIRU¶SROLWLFDOYLVLRQ·7KDWFKHUWKRXJKWRQHSHU VRQ·VYLVLRQWREHDQRWKHU·VLPSUDFWLFDOLGHDOLVP6KHSUHVHQWHGKHUVHOI DV UHDOLVW DOEHLW RQH ZLWK ÀUP FRQYLFWLRQV +HU %UXJHV VSHHFK VHH DERYH RIIHUHG DQ DOWHUQDWLYH DQG PRUH SUDFWLFDO YLVLRQ RI (XURSHDQ GHYHORSPHQW /HW(XURSHEHDIDPLO\RIQDWLRQVXQGHUVWDQGLQJHDFKRWKHUEHWWHU
7KDWFKHUDEURDG, DSSUHFLDWLQJHDFKRWKHUPRUHGRLQJPRUHWRJHWKHUEXWUHOLVKLQJ RXUQDWLRQDOLGHQWLW\/HWXVKDYHD(XURSHZKLFKSOD\VLWVIXOO SDUW LQ WKH ZLGHU ZRUOG ZKLFK ORRNV RXWZDUG QRW LQZDUG DQG ZKLFK SUHVHUYHV WKH$WODQWLF &RPPXQLW\ ² WKDW (XURSH RQ ERWK VLGHV RI WKH$WODQWLF ² ZKLFK LV RXU QREOHVW LQKHULWDQFH DQG RXU JUHDWHVWVWUHQJWK 7KHVSHHFKGHPRQVWUDWHVWKDWWKLVPRVW¶SUDFWLFDO·RI3ULPH0LQLVWHUV FRXOG ZDIÁH ZLWK WKH EHVW RI WKHP EXW WKH VSHFLÀF PHVVDJH LQGLFDWHV KRZPXFKVKHGLIIHUHGIURPWKHSUR(XURSHDQV,QVLGLRXVUHIHUHQFHWR (XURSHDQV¶RQERWKVLGHVRIWKH$WODQWLF·UHPLQGHGFULWLFVZKHUHKHUWUXH OR\DOWLHVOD\ 7KHPDLQFULWLFLVPVRI7KDWFKHU·V(XURSHDQSROLF\DUHWZR)LUVWVKH IDLOHGWRUHDOLVHZKDWVKHZDVVLJQLQJ%ULWDLQXSWRLQWKH6LQJOH(XURSHDQ $FW+HUQDWXUDOV\PSDWKLVHUVKDGJUHDWHVWUHDVRQWRUXHWKLVVSHFWDFXODU SLHFHRISROLWLFDOQDLYHWp6HFRQGVKHIUHTXHQWO\ZDVWHGLPSRUWDQWRS SRUWXQLWLHV E\ DJJUHVVLYH SRVWXULQJ 6XFK SRVWXULQJ ZDV ² PRUH RIWHQ WKDQVKHDOORZHG²IROORZHGE\DVWDQGDUG¶(XURIXGJH·DQ\ZD\%ULWDLQ ODUJHO\ EHFDXVH RI WKH GRPLQDQW SHUFHSWLRQ LQ WKH V WKDW ERWK LWV (PSLUHDQGLWV86DOOLDQFHZHUHPRUHLPSRUWDQWKDGEHHQDODWHHQWUDQW WRWKH((&:KHQLWMRLQHGLQWKH%ULWLVKHFRQRP\ZDVIDUZHDNHU YLVjYLVWKHPDMRUQDWLRQVRIWKH&RPPXQLW\WKDQLWZRXOGKDYHEHHQ LQ%ULWDLQGLGKRZHYHUKDYHERWKDORQJHUHVWDEOLVKHGSROLWLFDO GHPRFUDF\DQGDWOHDVWDVVXEVWDQWLDODWUDGLWLRQRIZRUOGZLGHLQÁXHQFH 7KHVH DVVHWV FRXOG KDYH EHHQ XVHG WR EXLOG XS D SRVLWLRQ RI SROLWLFDO HTXDOLW\ LI QRW OHDGHUVKLS HVSHFLDOO\ VLQFH WKH 1RUWK6HD RLOERRVWHG %ULWLVKHFRQRP\UHFRYHUHGTXLFNO\LQWKHHDUO\VJLYLQJWKHFRXQ WU\PRUHRSSRUWXQLW\WRSXOOLWVZHLJKWFRRSHUDWLYHO\ZLWKLQ(XURSH,Q VKRUW%ULWDLQKDGPXFKWKDWWKH&RPPXQLW\QHHGHG7KDWFKHUZLWKKHOG WKHPLQDVXVWDLQHGRUJ\RIVSOHHQVFHSWLFLVPDQGSHQQ\SLQFKLQJSUHFL VLRQ$Q\ YLVLRQ VKH KDG ZDV DOO WRR FOHDUO\ QRQ(XURSHDQ7KH FORVH UHODWLRQVKLSVKHEXLOWZLWK3UHVLGHQW5HDJDQVXJJHVWHGWKDW7KDWFKHULWH %ULWDLQUHPDLQHGERWKVWUDWHJLFDOO\DQGHPRWLRQDOO\PXFKPRUHDWWDFKHG WRDQ$WODQWLFWKDQWRD(XURSHDQD[LV 7KHORQJWHUPGDQJHUUHPDLQHGWKDWWKH8QLWHG6WDWHVE\WKHHDUO\ VWKHZRUOG·VRQO\VXSHUSRZHUDQGRQHZKLFKZDVEHFRPLQJOHVV ¶(XURSHDQ·QRWRQO\LQWHPSHUEXWLQHWKQLFFRPSRVLWLRQZLWKHYHU\SDVV LQJ\HDUKDGOHVVLQWHUHVWLQ%ULWDLQWKDQ%ULWDLQKDGLQWKH8QLWHG6WDWHV $JURVVO\XQHTXDOLIQRWVHQWLPHQWDO$PHULFDQDOOLDQFHDQDFKURQLVWL FDOO\ EXIIHG DV D ¶VSHFLDO UHODWLRQVKLS· VHHPHG D SHUYHUVH SUHIHUHQFH RYHUJURZLQJLQÁXHQFHLQDVHOIFRQÀGHQWDQGHFRQRPLFDOO\DGYDQFHG (XURSHDQ SRZHU EORF 7KH DVVHUWLRQ WKDW FORVH OLQNV ZLWK WKH 8QLWHG
7KDWFKHUDEURDG, 6WDWHVZHUHQRWLQFRPSDWLEOHZLWKFRQVWUXFWLYHPHPEHUVKLSRIWKH(& FXWOLWWOHLFH 7KH (& LQ WKH V WRR RIWHQ VDZ D RQFH SRZHUIXO EXW QRZ VXEVWDQWLDOO\ GLPLQLVKHG DQG JHRJUDSKLFDOO\ SUHWW\ UHPRWH VWDWH RQ WKH QRUWKZHVW IULQJHV RI (XURSH WU\LQJ WR UHOLYH SDVW JORULHV XQGHU D IRUPLGDEOHEXWIRUPLGDEO\ZURQJKHDGHGOHDGHUZKRUHIXVHGWRDFFHSW WKDWPHGLXPVL]HG(XURSHDQQDWLRQVWDWHVFRXOGPDNHHIIHFWLYHDQGFRQ VWUXFWLYHFRQWULEXWLRQVRQO\WKURXJKFORVHFROODERUDWLRQZLWKHDFKRWKHU &ULWLFVRI7KDWFKHU·V(&SROLF\EHPRDQHGDGHFDGHRIIUDFWLRXVZDVWHG RSSRUWXQLW\,QWKHODWHVDQGHDUO\V%ULWDLQKHGJHGUHPDLQHG ¶GLIÀFXOW· DQG QHJRWLDWHG RSWRXWV IURP PHDVXUHV GHVLJQHG WR LPSURYH LQWUD&RPPXQLW\ WUDGH EDQNLQJ DQG VRFLDO FRQGLWLRQV $OO WRR RIWHQ WKH FRQVWLWXHQF\ EHLQJ DGGUHVVHG ZDV QRW WKH &RPPXQLW\ EXW D GLVX QLWHGSDUOLDPHQWDU\&RQVHUYDWLYH3DUW\$V*O\QQDQG%RRWKKDYHSXWLW %ULWDLQ¶IDFHGWKHSURVSHFWRIFRQWLQXHGUHODWLYHGHFOLQHRQWKHIULQJHVRI D(XURSHDQFRPPXQLW\PRYLQJWRZDUGVHYHUFORVHULQWHJUDWLRQ·
7KDWFKHUDEURDG,,
'HIHQFHDQGWKH$PHULFDV
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¶$WODQWLFLVP·ZDVDNH\ HOHPHQWLQ%ULWLVKIRUHLJQSROLF\GXULQJWKHV 7KDWFKHU DFNQRZOHGJHG LWV LPSRUWDQFH LQ D W\SLFDOO\ JUDQGLRVH DV VHVVPHQWPDGHVRRQDIWHUVKHOHIWRIÀFH¶7KH8QLWHG6WDWHVDQG%ULWDLQ KDYH WRJHWKHU EHHQ WKH JUHDWHVW DOOLDQFH LQ WKH GHIHQFH RI OLEHUW\ DQG MXVWLFHWKDWWKHZRUOGKDVHYHUNQRZQ·,JQRULQJWKHIDFWWKDWDOOLDQFHV DUHDOPRVWLQYDULDEO\PDGHIRUIDUPRUHSUDJPDWLFUHDVRQVWKDQWKHVH LWLVHDV\WRVHHZK\WKHWZRFRXQWULHVKDGGHYHORSHGDORQJWHUPXQ GHUVWDQGLQJ 0RVW RI WKH 8QLWHG 6WDWHV·V HDUO\ OHDGHUV ZHUH RI %ULWLVK RULJLQDQGRQFHWKHQHZVWDWH·VLQGHSHQGHQFHZDVFRQFHGHGE\%ULWDLQ LQWKHUHZDVIDUPRUHWREULQJWKHPWRJHWKHUWKDQNHHSWKHPDSDUW HWKQLFLW\PXWXDOO\EHQHÀFLDOWUDGLQJUHODWLRQVDQGVHSDUDWHQRQFRPSHW LQJVSKHUHVRIWHUULWRULDOLQÁXHQFHZHUHWKUHHZKLFKKHOGJRRGIRUPRVW RIWKHQLQHWHHQWKFHQWXU\ ,QWKHWZHQWLHWKFHQWXU\WKH8QLWHG6WDWHVIRXJKWWZRZDUVDORQJVLGH %ULWDLQ DOWKRXJK LQ ERWK FDVHV RQO\ HYHQWXDOO\ ,Q WKH 6HFRQG :RUOG :DU WKH 86 FRQWULEXWLRQZDV GHFLVLYHZKHQ %ULWDLQDORQHRI +LWOHU·V (XURSHDQRSSRQHQWVVXUYLYHGWRFDUU\RQWKHÀJKWDIWHU%ULWDLQ HQWHUHGWKH6HFRQG:RUOG:DUDVRQHRIWKHOHDGLQJLPSHULDOSRZHUV WKH8QLWHG6WDWHVHQGHGLWDVRQHRIWZRDQWDJRQLVWLF¶VXSHUSRZHUV·,WV
7KDWFKHUDEURDG,, GHWHUPLQDWLRQWREXLOGXSZHVWHUQ(XURSHDVDJHRSROLWLFDOFRXQWHUSDUW WRWKHHYLO6RYLHWHPSLUHEURXJKWWKH8QLWHG6WDWHVPRUHGHFLVLYHO\LQWR (XURSHDQDIIDLUVWKDQHYHUEHIRUH%ULWDLQZDVVHHQDVWKHPDLQVWD\RI WKDW(XURSHDQSROLF\:LQVWRQ&KXUFKLOOZKRVHRZQPRWKHUKDGEHHQ $PHULFDQGHOLEHUDWHO\GHOLYHUHGKLVIDPRXV¶,URQ&XUWDLQ·OHFWXUH LQD86LQVWLWXWLRQZLWKDQDSSRVLWHQDPH²:HVWPLQVWHU&ROOHJH)XOWRQ 0LVVRXUL 7KHWZRQDWLRQVKDYHEHHQVXIÀFLHQWO\FORVHDOOLHVVLQFHWRZDU UDQWWKHIUHTXHQWO\XVHGGHVFULSWLRQ¶VSHFLDOUHODWLRQVKLS·+RZHYHULW ZDVQRWDQDOOLDQFHZLWKRXWVWUDLQ4XLWHDSDUWIURPVSHFLÀFVKRUWWHUP GLVDJUHHPHQWVPRVWQRWDEO\(LVHQKRZHU·VIHHOLQJWKDWKHKDGEHHQPD OLFLRXVO\PLVOHGE\(GHQRYHU%ULWDLQ·VDJJUHVVLYHLQWHQWLRQVDW6XH]LQ ORQJHUWHUPWHQVLRQVZHUHQHYHUIDUIURPWKHVXUIDFH7KH8QLWHG 6WDWHV ZDQWHG %ULWDLQ WR WDNH WKH OHDG LQ D VWURQJ ZHVWHUQ (XURSHDQ SKDODQ[DJDLQVWWKH8665$WOHDVWXQWLOWKHODWHV%ULWDLQFRQWLQ XHGWRVHHLWVHOIDVDQDWLRQLIQRWDVSRZHUIXODVWKHWZRVXSHUSRZHUV WKHQFOHDUO\PRUHSRZHUIXOWKDQWKHUHVW,WVZRUOGZLGHLQWHUHVWVZHUH WKHUHIRUHWRRLPSRUWDQWWRULVNGLOXWLRQE\PHPEHUVKLSRIWKH&RPPRQ 0DUNHW7KH8QLWHG6WDWHVDOEHLWXVXDOO\SULYDWHO\ FRQVLGHUHGWKLVVHOI SHUFHSWLRQXQUHDOLVWLF%ULWDLQ·VUHODWLYHHFRQRPLFGHFOLQHEHFDPHHYHU PRUHDSSDUHQW,WVZRUOGZLGHUROHZDVDOVRHQRUPRXVO\GLPLQLVKHGDV LWTXLWPRVWRILWVROGLPSHULDOSRVVHVVLRQVEHWZHHQWKHODWHVDQG WKHHDUO\V'HDQ$FKHVRQ·VREVHUYDWLRQLQWKDW¶*UHDW%ULWDLQ KDVORVWDQ(PSLUHDQGKDVQRW\HWIRXQGDUROH·ZDVPRUHWKDQDQHDW DSKRULVP,WFRQYH\HGLQFRGHZLGHVSUHDG86IUXVWUDWLRQZLWKLWVDOO\·V SUHWHQVLRQV%ULWDLQ·VLQGHSHQGHQWQXFOHDUVWDWXVZDVERWKDFRVWO\SLHFH RIVHOIDGYHUWLVHPHQWIRUDGHFOLQLQJSRZHUDQGDIXUWKHUVRXUFHRI86 DQQR\DQFH %ULWDLQ FRXOG H[HUW PDVVLYH LQÁXHQFH LQ DQ LPSRUWDQW EXW SUHFLVHO\GHÀQHGVSKHUH²(XURSH²EXWFKRVHLQVWHDGWRSRVWXUHDVD JUHDW SRZHU WR HPEDUUDVVLQJO\ OLPLWHG HIIHFW 86 IUXVWUDWLRQ ZDV RQO\ LQFUHDVHGE\WKHIDFWWKDWGH*DXOOHYHWRHG%ULWLVKPHPEHUVKLSRIWKH ((&LQWKHHDUO\VRQWKHJURXQGVWKDW%ULWDLQZDVWRR¶$PHULFDQ· DQGLQVXIÀFLHQWO\¶(XURSHDQ· 7KH¶VSHFLDOUHODWLRQVKLS·LQWKH\HDUVEHIRUH7KDWFKHUWKHUHIRUHZDV RIWHQDPDWWHUPRUHRIVW\OHWKDQRIVXEVWDQFH,WEHQHÀWHGERWKVLGHVWR DVVHUW LWV LQGLVVROXEOH H[LVWHQFH DQG LQGHHG JHQXLQHO\ ZDUP UHODWLRQ VKLSV GHYHORSHG EHWZHHQ QDWLRQDO OHDGHUV .HQQHG\ DQG 0DFPLOODQ LQ WKH HDUO\ V DQG &DUWHU DQG &DOODJKDQ LQ WKH ODWHU V VWDQG RXW %HQHDWK WKH VXUIDFH KRZHYHU UHODWLRQVKLSV ZHUH QRW DV ¶VSHFLDO· DV WKH\ VHHPHG DQG ZHUH EHFRPLQJ OHVV FORVH )RU H[DPSOH +HDWK·V (XURSHDQLVP VDZ KLP VXSSRUW WKH (& RYHU WKH 8QLWHG 6WDWHV GXULQJ WKHWUDGHSURWHFWLRQVTXDEEOHVRIWKHHDUO\V7KHUHDOLW\ZDVWKDW
7KDWFKHUDEURDG,, %ULWDLQZDQWHGDUHODWLRQVKLSPRUH¶VSHFLDOO\·WKDQWKH8QLWHG6WDWHVPHDQLQJ D *HUPDQOHG IHGHUDOLVW (XURSHDQ FRPPXQLW\@7KH%ODLUJRYHUQPHQW@LVPDULQDWHGLQFOLFKpVDERXW2QH1DWLRQ 7KLUG:D\VRFLDOLQFOXVLRQDQGDVSLUDWLRQDOVRFLHW\%XWLWVDSSHDO LV«WRRIIHUDULJLGO\FRQWUROOHGVWDWHVHFWRUWRWKHWD[FRQVFLRXV ÁRDWLQJYRWHUVRIPLGGOH(QJODQG 7KDWFKHU·V LQLWLDO SUREOHPV ZLWK DQ HVWDEOLVKHG &RQVHUYDWLYH 3DUW\ KLHUDUFK\ KDYH EHHQ QRWLFHG HOVHZKHUH VHH &KDSWHU 7RQ\ %ODLU FDPHIURPDTXLQWHVVHQWLDOO\&RQVHUYDWLYHEDFNJURXQG+LVIDWKHUZDV D VXFFHVVIXO EXVLQHVVPDQ DQG D7RU\ FRXQFLOORU ZKR HGXFDWHG KLV VRQ DWDOHDGLQJ6FRWWLVKSXEOLFVFKRRO%ODLUQHYHULPELEHGWKH¶EHHUDQG VDQGZLFKHV· FXOWXUH RI /DERXU DFWLYLVP DQG WRRN IDU OHVV LQWHUHVW WKDQ PRVWSDUW\OHDGHUVLQFXOWLYDWLQJGHHSURRWVLQWKHSDUW\/LNH7KDWFKHU KHLQWHQGHGWRVWDQGRUIDOORQKLVGLUHFWDSSHDOWRWKH%ULWLVKSHRSOH/LNH 7KDWFKHUDOVRKHVWUHVVHGWKHNH\UROHRIEXVLQHVV¶,QWKHHQGWKHUHLVQR HVFDSLQJIURPWKHIDFWWKDWEXVLQHVVHVUXQEXVLQHVV$QGWKHEHVWWKLQJ JRYHUQPHQW FDQ GR LV VHW D IUDPHZRUN ZLWKLQ ZKLFK EXVLQHVV KDV WKH VWDELOLW\WRSODQDQGLQYHVWLQWKHIXWXUH· 7KHZHDSRQVWKDW7KDWFKHUDQG%ODLUXVHGZHUHRIWHQGLIIHUHQWEXWLQ WKHLUZLOOLQJQHVVWRFKDOOHQJHSDUW\FXVWRPDQGWUDGLWLRQWKHWZROHDGHUV ZHUH UHPDUNDEO\ VLPLODU$V RQH FRPPHQWDWRU SXW LW ¶,Q WKH YLHZ RI %ODLUDQGKLVIHOORZPRGHUQLVHUVWKH/DERXU3DUW\ZDVDQLQJURZQDQG EDFNZDUGORRNLQJ RUJDQLVDWLRQ ORFNHG LQWR DQ RXWGDWHG VHW RI GRJPDV UHODWHGWRDQHZDQGUDSLGO\FKDQJLQJFXOWXUDODQGJOREDOFRQGLWLRQV· 7REULQJLQJWKRVHFKDQJLQJFRQGLWLRQVDERXW7KDWFKHUKDGFRQWULEXWHG PXFK
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·VPHGLDUHODWLRQV¶ZHUHHVVHQWLDOO\ DSHUPDQHQWH[HUFLVHLQGDPDJHOLPLWDWLRQ·%ODLUOHDUQHGPXFKIURP WKLV H[SHULHQFH +H ZDV NHHQ WR SURMHFW KLPVHOI DV D VWURQJ OHDGHU LQ FRQWURO RI KLV SDUW\ SDUWLFXODUO\ DV 0DMRU ZDV GHPRQVWUDEO\ QRW LQ FRQWURORIKLV:LWKKLVNH\DGYLVHUVRQPHGLDDIIDLUV$ODVWDLU&DPSEHOO DQG3HWHU0DQGHOVRQKHHQVXUHGWKDW/DERXUZDVDEOHWR¶ULGHWKHWLJHU· RIPHGLDLQÁXHQFHDQGPDQLSXODWHLWSHUKDSVIRUWKHÀUVWWLPHWRWKH SDUW\·V DGYDQWDJH ,Q GRLQJ WKLV %ODLU DOVR DGRSWHG D SRSXOLVW VW\OH -XVWDV7KDWFKHUKDGQRFRPSXQFWLRQDERXWDSSHDOLQJRYHUWKHKHDGVRI WKH&RQVHUYDWLYH3DUW\WRFRQQHFWZLWK¶KHU·SHRSOHVR%ODLU·VGLVFRXUVH ZDVUHSOHWHZLWKUHIHUHQFHVWR¶WKHSHRSOH·,QGLVFXVVLQJWKH1DWLRQDO /RWWHU\ZKLOHVWLOOLQRSSRVLWLRQKHDVVHUWHGWKDWKH¶ZDQWHGWKHSHRSOH·V PRQH\WRJRRQWKHSHRSOH·VSULRULWLHV·7KH%ULWLVKSHRSOHVKRXOGQRW KDYH EHHQ VXUSULVHG DOWKRXJK PDQ\ IDVWLGLRXV VWRPDFKV WXUQHGZKHQ %ODLULPPHGLDWHO\PDVVDJHGZKDWKDGEHHQWKHKLJKO\DPELJXRXVUHSX WDWLRQRIWKHUHFHQWO\GHFHDVHG'LDQDLQWRSRSXOLVWFDQRQLVDWLRQZKHQKH GXEEHGKHU¶WKHSHRSOH·VSULQFHVV· %ODLU·V FULWLFV ZRXOG VD\ WKDW WKH GRZQVLGH RI PHGLD PDQLSXODWLRQ ²EUDLQGHDGHQHG¶RQPHVVDJH·VWDWHPHQWVIURP/DERXU03VWKHFORVLQJ GRZQ RI YLJRURXV SROLWLFDO GHEDWH DQG WKH LQVLGLRXV SHUYDVLYH FXOWXUH RI ¶VSLQ· ² ZDV IXUWKHU HYLGHQFH RI KLV LQGHEWHGQHVV WR WKH OHJDF\ RI 7KDWFKHU$OWKRXJK &DPSEHOO DQG 0DQGHOVRQ WRRN WKLV WR PXFK PRUH H[WUHPHOHQJWKVWKDQ,QJKDPLQWKH7KDWFKHUHUD1HZ/DERXU·VUHFRJQL WLRQWKDWLWZDVDOPRVWLPSRVVLEOHIRUDSDUW\WRVXUYLYHLQWKHIDFHRI VXVWDLQHGKRVWLOHSUHVVFRYHUDJHRZHGPXFKWRSDVW/DERXUH[SHULHQFH DQG WR WKHLU XQGHUVWDQGLQJ RI WKH UHDVRQV IRU WKH FRQWUDVWLQJ SROLWLFDO IRUWXQHVRI7KDWFKHUDQG0DMRU1RWVXUSULVLQJO\REVHVVLRQZLWKQHZV PDQDJHPHQWKDVDWWUDFWHGYLJRURXVFULWLFLVPIURPVHQLRU/DERXUSROLWL FLDQVUHVLVWDQWWRWKHEODQGLVKPHQWVRI7RQ\%ODLU·VELJSROLWLFDOWHQW)RU 5R\+DWWHUVOH\IRUH[DPSOH 7KH DELGLQJ WUDJHG\ RI %ODLULVP LV LWV DEVROXWH REVHVVLRQ ZLWK DSSHDUDQFHV:KDW1HZ/DERXUORRNVOLNHLVPRUHLPSRUWDQWWKDQ
7KHOHJDF\, ZKDW1HZ/DERXUGRHV3UHVHQWDWLRQZKLFKRXJKWWREHHPSOR\HG WRSURPRWHSROLF\RIWHQGLFWDWHVZKDWSROLF\VKDOOEH7KDWSUR GXFHVWKHZRUVWVRUWRIVKRUWWHUPLVPIRULWIRFXVHVHYHQWKHPRVW LPSRUWDQWGHFLVLRQVRQWRPRUURZ·VKHDGOLQHV ,Q IRUHLJQ DIIDLUV DOVR %ODLU·V OHDGHUVKLS VKRZV HOHPHQWV RI 7KDWFKHULWH SULRULWLHV7KH HYHQWV RI ² FXOPLQDWLQJ LQ WKH DOOLHG 86²8.DWWDFNRQ,UDTKDYHGRPLQDWHGSXEOLFSHUFHSWLRQ7KHVHDSSHDU WR LQGLFDWH WKDW ZKHQ WKH FKLSV DUH GRZQ %ULWLVK IRUHLJQ SROLF\ IDOOV PHHNO\LQEHKLQGDQDJHQGDVHWE\WKH8QLWHG6WDWHV7KHZDUZLWK,UDT PLJKWEHVHHQDVWKHFRQWLQXDWLRQRI*HRUJH%XVK-U·VFUXVDGHDJDLQVW WHUURULVP LQ WKH ZDNH RI WKH DWWDFN RQ WKH WZLQ WRZHUV LQ 6HSWHPEHU 2QWKLVDQDO\VLVZKHQ%XVKZKLVWOHG%ODLUREHGLHQWO\FDPHWR KHHO%ODLUPLJKWWKXVEHVHHQDVIROORZLQJ7KDWFKHULQVDFULÀFLQJRWKHU FRQVLGHUDWLRQVIRUWKHVRFDOOHG¶VSHFLDOUHODWLRQVKLS·VHH&KDSWHU ,WLVLPSRUWDQWKRZHYHUQRWWRMXGJH%ODLU·VIRUHLJQSROLF\SXUHO\LQ WKHFRQWH[WRIWKH,UDTZDU&RPSDUHGZLWK7KDWFKHU1HZ/DERXUIRU HLJQSROLF\DWWHPSWHGPXFKJUHDWHULQFOXVLYHQHVV7KHDWWHPSWWRGHÀQH ZKDW%ODLU·VÀUVWIRUHLJQVHFUHWDU\5RELQ&RRNFDOOHGDQ¶HWKLFDOIRUHLJQ SROLF\·UDQLQWRGLIÀFXOWLHVDQGDWWUDFWHGVXEVWDQWLDOFULWLFLVPZKHQKLJK ÁRZQ SULQFLSOH ERZHG WR SUDJPDWLF FRQVLGHUDWLRQV 1HYHUWKHOHVV LW LV LPSRVVLEOHWRLPDJLQH0DUJDUHW7KDWFKHUDVVHUWLQJDV&RRNGLGLQ ¶ZHKDYHSXWKXPDQULJKWVDWWKHKHDUWRIIRUHLJQSROLF\·6LPLODUO\ 7RQ\%ODLU·V&KLFDJRVSHHFKLQ$SULODVVHUWHGDGLVWLQFWLYHO\QHZ UROH IRU WKH LQWHUQDWLRQDO FRPPXQLW\ E\ HPSKDVLVLQJ WKDW LQWHUYHQWLRQ ¶LQRWKHUSHRSOH·VFRQÁLFWV·PLJKWEHPRUDOO\MXVWLÀHG7KLVVSHHFKZDV IDUPRUHWKDQDQH[SRVWIDFWRUDWLRQDOLVDWLRQIRULQWHUYHQWLRQLQ.RVRYR ,URQLFDOO\LQWKHOLJKWRIWKHKHDY\FULWLFLVPZKLFKWKH,UDT:DURI SURYRNHGZLWKLQWKHLQWHUQDWLRQDOFRPPXQLW\LWZDVDQDWWHPSWWRFODLP %ULWLVKPRUDOOHDGHUVKLSLQVXSSRUWRILQWHUQDWLRQDOHIIRUWVWRKDOWJHQR FLGHDQGWRFXUEWKUHDWVWRLQWHUQDWLRQDOVHFXULW\ZKLOHWKHVHZHUHVWLOO FRQWDLQDEOH,WLVGLIÀFXOWWRLPDJLQH7KDWFKHUDFNQRZOHGJLQJWKDWLQWHU QDWLRQDODFWLYLW\VKRXOGHYHUWDNHSULRULW\RYHUQDWLRQDOVHOILQWHUHVW ,Q (XURSH WRR %ODLU·V JRYHUQPHQW KDV WDNHQ D GLVWLQFWO\ QRQ 7KDWFKHULWHOLQH+HUOHJDF\RIGLYLVLRQRQ(XURSHGLGRIFRXUVHFRQ WLQXH%ODLUZDVZHOODZDUHRIWKHGLYLVLYHQHVVRIDQ\GHFLVLRQWRMRLQWKH (XURSHDQVLQJOHFXUUHQF\DQGWKXVDVPDQ\LQWKHSUHVVFKDUDFWHULVHGLW WR¶VDFULÀFHWKHSRXQG·7KHLVVXHZDVHQGOHVVO\GHOD\HGZKLOHKHVDLG WKDWKHZDVZDLWLQJIRUVSXULRXV¶HFRQRPLFWHVWV·WREHPHWZKHUHDVKH ZDVZDLWLQJHLWKHUIRUVRPHWKLQJWRWXUQXSRUIRUWKHKHDWWRJRRXWRI WKHLVVXH2YHUDOOWKRXJK%ODLUSURYHGPXFKPRUHSUR(XURSHDQWKDQ 7KDWFKHU+HUHEXLOWEULGJHVWKDW7KDWFKHUFRQWHPSWXRXVO\GHPROLVKHG
7KHOHJDF\, LQWKHVVHH&KDSWHU DQGZKLFK0DMRUKDGIHDUHGWRDSSURDFKLQ WKHV8QOLNH7KDWFKHUKHZDVKDSS\WRVSHDN)UHQFK+HVXSSRUWHG WKHH[SDQVLRQRIWKH(8DQGKHSURPRWHGLQLWLDWLYHVGHVLJQHGWRDFKLHYH FRPPRQ (8 IRUHLJQ DQG VHFXULW\ SROLFLHV %ODLU LV ZLWKRXW TXHVWLRQ PXFKPRUHRIDQLQWHUQDWLRQDOLVWWKDQ7KDWFKHU(XURSHDQSROLF\LVWKH DUHD LQ ZKLFK KH KDV PRVW GHFLVLYHO\ WXUQHG KLV EDFN RQ WKH7KDWFKHU OHJDF\ %ODLU·VGHWHUPLQDWLRQWRSURPRWH1HZ/DERXUDVDQRQVRFLDOLVWHQ WHUSULVHH[SOLFLWO\UHFRJQLVHGWKHLPSRUWDQFHRIWKH7KDWFKHUOHJDF\$V SDUWRIDGHOLEHUDWHDVVHUWLRQRIKLVSRZHURYHUKLVSDUW\ZKLFKUHWDLQHGD YLVFHUDOKDWUHGIRU7KDWFKHUKHZHQWRXWRIKLVZD\WRVWDWHWKDWVKH¶KDG JRWFHUWDLQWKLQJVULJKW·DQGKHDSSURYHGRIDVSHFWVRIKHUPRGHUQLVDWLRQ SURJUDPPH DJDLQVW ¶YHVWHG LQWHUHVWV· +H NHSW WR WKH NH\ HOHPHQW RI KHUWD[DWLRQSROLF\LQVWUXFWLQJKLV&KDQFHOORURIWKH([FKHTXHU*RUGRQ %URZQPXFKDJDLQVWKLVEHWWHUMXGJHPHQWQRWWRUDLVHHLWKHUWKHVWDQGDUG RUWKHKLJKHUUDWHRIWD[DWLRQ+LVJRYHUQPHQWKDVDOVRFRQWLQXHGZLWKD UDIWRI7KDWFKHULWHSROLFLHVDQGDWWLWXGHV6RPHFKDQJHGUKHWRULFDVLGH 1HZ/DERXUZRUNVPXFKPRUHUHDGLO\ZLWKWKHJUDLQRISULYDWHWKDQ SXEOLFVHFWRULQLWLDWLYHV,WKDVDEVRUEHGDQGH[WHQGHGWKHXJO\ZLQG\ UKHWRULFRIPDQDJHULDOLVP,WVHWVWDUJHWVPHDVXUHVRXWFRPHVDQGYHQHU DWHV¶SHUIRUPDQFHLQGLFDWRUV·,WDOVRPDQLSXODWHVÀJXUHVZLWKWKHEHVWRI WKHPVRWKDWWKH\FDQEHVSXQWRLQGLFDWH¶SURJUHVV·DQG¶DFKLHYHPHQW· 7KHLPSRUWDQFHRIWKH7KDWFKHUOHJDF\IRU%ODLULVXQGHQLDEOHEXWLW VKRXOGQRWEHRYHUGRQH:KDWEHFDPHNQRZQDVWKH%ODLULWH¶7KLUG:D\· ² GULYHQ QHLWKHU E\ FDSLWDOLVW LPSHUDWLYHV QRU E\ VRFLDOLVW FHUWDLQWLHV ²ZDVQRWRQO\GLVWLQFWLYHO\GLIIHUHQWIURP7KDWFKHULVP,QLPSRUWDQWDU HDVLWGLUHFWO\UHIXWHGLW7KDWFKHUZDVKRVWLOHWRDOOIRUPVRIGHYROXWLRQ 7KHFUHDWLRQRI6FRWWLVKDQG:HOVKDVVHPEOLHVZDVRQHRIWKHHDUOLHVW LQLWLDWLYHVRIWKH%ODLUJRYHUQPHQW5HIHUHQGDRYHUGHYROXWLRQZHUHKHOG LQ 6FRWODQG DQG :DOHV LQ 6HSWHPEHU 7KH ÀUVW HOHFWLRQV IRU WKH GHYROYHGDVVHPEOLHVZHUHKHOGLQERWKFRXQWULHVLQ&RQVWLWXWLRQDO UHIRUP DOVR HQFRPSDVVHG WKH FUHDWLRQ RI WKH UROH RI HOHFWHG 0D\RU RI /RQGRQLQDQGSURWUDFWHGGLVFXVVLRQVDERXW+RXVHRI/RUGVUHIRUP EHJDQWREHDUIUXLWIURP1RQHRIWKHVHLQLWLDWLYHVZRXOGKDYHFRPH DERXWXQGHU7KDWFKHU $OWKRXJK WKH UHODWLRQVKLS ZDV QHYHU FRV\ WKH UHODWLRQVKLS EHWZHHQ JRYHUQPHQW DQG WUDGH XQLRQV EHFDPH IDU OHVV KRVWLOH XQGHU %ODLU$Q LQLWLDWLYHEORFNHGE\VXFFHVVLYH&RQVHUYDWLYHJRYHUQPHQWVVLJQLQJXS WRWKHVRFDOOHG¶6RFLDO&KDSWHU·RIWKH(8KDSSHQHGXQGHU%ODLUZLWKLQ D PRQWK RI KLV FRPLQJ LQWR RIÀFH$ :KLWH 3DSHU )DLUQHVV DW :RUN SURPLVHGZRUNHUVQHZVDIHJXDUGVDOWKRXJKVRPHSURSRVDOVZHUHODWHU ZDWHUHGGRZQXQGHUSUHVVXUHIURPHPSOR\HUV$QRWKHURI7KDWFKHU·V
7KHOHJDF\, DYHUVLRQV²WKHPLQLPXPKRXUO\ZDJH²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²LQFUHDVLQJPHDQVWHVWHGLQFRPHVXSSRUW IRUROGSHRSOHDQGXVLQJDFRPSOH[V\VWHPRIWD[FUHGLWVDQGEHQHÀWV WRVXSSRUWWKHFKLOGUHQRIORQHSDUHQWDQGRXWRIZRUNIDPLOLHV%ODLU·V REMHFWLYHZDV¶WRDEROLVKFKLOGSRYHUW\LQDJHQHUDWLRQ· 7KHSRLQWRIDOOWKLVLVQRWZKHWKHUWKHSROLFLHVVXFFHHGHG7KH%ODLU JRYHUQPHQW·VREMHFWLYHRIZKDWRQHFRPPHQWDWRUKDVFDOOHG¶VHOHFWLYH XQLYHUVDOLVP·²SD\OLSVHUYLFHWRDXQLYHUVDOV\VWHPRIKHDOWKDQGHGXFD WLRQEXWEHPXFKPRUHGLUHFWLYHDERXWZKHUHWKHEXONRIVWDWHDLGJRHV ²KDGDWOHDVWDVPDQ\VXFFHVVHVDVIDLOXUHV,WKDVIDLOHGWRDVVXDJHWKH UHVHQWPHQWIHOWE\WKRVHZKRDUH²MXVW²DEOHWRKHOSWKHPVHOYHVWKXV IDOOLQJ MXVW RXWVLGH JRYHUQPHQWGHÀQHG VDIHW\ QHWV 7KH ZLGHVSUHDG IHHOLQJ DPRQJ WKLV ODUJH JURXS LQ WKH ORZHU PLGGOH FODVVHV WKDW WKRVH ZKRKDYHEHHQOHVVSUXGHQWDQGOHVVRUJDQLVHGDUHEDOHGRXWE\XQHDUQHG ¶VWDWHKDQGRXWV·KDVSRWHQWLDOO\VHULRXVUHSHUFXVVLRQV1HYHUWKHOHVVWKH DVVDXOWRQFKLOGSRYHUW\KDVKDGVRPHGUDPDWLFVXFFHVVHV:KHUHDV SHU FHQW RI FKLOGUHQ LQ RXWRIZRUN IDPLOLHV ZHUH GHÀQHG DV EHLQJ LQ VHYHUH QHHG LQ E\ WKLV SURSRUWLRQ KDG GURSSHG WR SHU FHQW 1HZ /DERXU ZDV SUHSDUHG WR XVH RYHUWO\ UHGLVWULEXWLYH SROLFLHV WR WDFNOHVRFLDOSUREOHPVZKHUHDV7KDWFKHUZDVQRW7KHVRFDOOHG%ODLULWH ¶7KLUG:D\·KDVFRPHLQIRUVRPHVHYHUHFULWLFLVPODUJHO\RQWKHEDVLV RILWVLQWHOOHFWXDOSODVWLFLW\¶7KLUG:D\LVP·PD\QRWUHSUHVHQWDFRJHQW
7KHOHJDF\, LQWHOOHFWXDOVWUDWHJ\EXWLWVREMHFWLYHVDUHGLVWLQFWO\GLIIHUHQWIURPWKRVH RI D JRYHUQPHQW FRQWUROOHG E\ VXSSO\ VLGH HFRQRPLFV DQG LQ WKUDOO WR PDUNHW IRUFHV$V ZH KDYH VHHQ PDQ\ VLPLODULWLHV PD\ EH GUDZQ EH WZHHQ7KDWFKHUDQG%ODLU+HUOHJDF\ZDVXQGRXEWHGO\DPDMRULQÁXHQFH RQKLVDWWLWXGHVDQGKLVSROLF\IRUPXODWLRQV8OWLPDWHO\WKRXJKKHZDV OHVV¶LGHRORJLFDO·WKDQKHUDQGPXFKPRUHZLOOLQJWRSXWVRFLDOQHHGQHDU WRWKHKHDUWRIJRYHUQPHQWVWUDWHJ\
7KHOHJDF\,,
(FRQRP\VRFLHW\DQGHWKRV
(&2120