Citation
Landscapes and plantations on Tobago

Material Information

Title:
Landscapes and plantations on Tobago a regional perspective
Creator:
Clement, Christopher Ohm, 1960-
Publication Date:
Language:
English
Physical Description:
xx, 274 leaves : ill. ; 29 cm.

Subjects

Subjects / Keywords:
Bricks ( jstor )
Estate planning ( jstor )
Factories ( jstor )
Houses ( jstor )
Parishes ( jstor )
Plantations ( jstor )
Rivers ( jstor )
Slavery ( jstor )
Sugars ( jstor )
Table sugars ( jstor )
Plantations -- Tobago ( lcsh )
Sugar trade -- Tobago ( lcsh )
Genre:
bibliography ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1995.
Bibliography:
Includes bibliographical references (leaves 259-272).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Christopher Ohm Clement.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright [name of dissertation author]. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
002054085 ( ALEPH )
AKP2057 ( NOTIS )
33472887 ( OCLC )

Downloads

This item has the following downloads:


Full Text













LANDSCAPES AND PLANTATIONS ON TOBAGO:
A REGIONAL PERSPECTIVE















BY


CHRISTOPHER OHM CLEMENT


A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY




UNIVERSITY OF FLORIDA


1995
















Copyright 1995

by

Christopher Ohm Clement
















"A people without a knowledge of their past
history, origin and culture is like a tree without
roots."
Marcus Garvey














ACKNOWLEDGEMENTS


Any research project is a cooperative effort involving

not only the researcher, but a host of others. Peter R.

Schmidt served as my committee chair. He reined me in when

I got overly enthusiastic, and provided a sounding board for

my ideas. Peter's principal contribution, however, was his

faith that I would do my part professionally. In addition,

his knowledge of African cultures, both past and present,

made me aware of potential avenues for understanding slave

life on Tobago.

I have been privileged to be associated with Michael E.

Moseley since 1985, when he rescued me from graduate apathy

by agreeing to oversee my master's research. Mike remains

on my committee, and has continued to be both a mentor and

friend during the course of this dissertation. Though I am

no longer directly associated with his Peruvian research,

the direction I have taken on Tobago is largely a result of

Mike's influence. In addition, the technical and analytical

skills I needed to complete the St. David's Archaeological

Survey were built on skills developed under his direction.

Kathleen A. Deagan and William F. Keegan are the

remaining two anthropologists on my committee. Between the

two of them, I had access to a great deal of knowledge about

iv









Caribbean history and prehistory. In addition, Kathy's

commitment to the archaeological record and her insistence

that excavation should only be undertaken in the absence of

other data sources led to a largely survey methodology,

while Bill's positivist epistemology within an economic

framework contributed a great deal to the theoretical

underpinnings of my research.

The final member of my committee, Ralph B. Johnson,

provided a non-anthropological viewpoint, encouraging me to

present my research in a way that could be understood by a

less specialized audience.

Thomas Hales Eubanks, along with Mike Moseley, is the

codirector of the Tobago Archaeological Program. He

developed much of the infrastructural support and contacts

on Tobago that I later tapped into, and has been most

responsible for the continuing ability of Program

researchers to work on Tobago. My research would not have

been possible without the groundwork that he laid. In

addition, he travelled to Tobago on several occasions to

visit me in the field. His timely arrivals at critical

junctures of the fieldwork provided both moral support and

invaluable expertise. Above all, however, Tom introduced me

to Tobago.

David L. Niddrie, though he did not know me, spent

several hours discussing my research, and went so far as to

lend me his field notes from research he undertook on Tobago









in the late 1950s. His in depth knowledge of Tobagonian

land-use practices provided a base-line for much of my

analysis.

Funding for this research came from two sources. The

preliminary study was funded by a research grant from the

Amoco Foundation, Inc., sponsored by Amoco Trinidad Ltd.,

while the bulk of the research was performed under a

National Science Foundation dissertation improvement grant.

Finally, the majority of the excavation at the Courland

estate village was supported by a second Amoco grant. These

were the second and third Amoco grants Program researchers

have received. We greatly value their continued support of

our efforts on Tobago.

Several friends on Tobago were instrumental in this

research, though in less tangible ways. To them I owe a

debt of friendship. George Stanley Beard, and his wife,

Shirley, provided a home and family for much of my stay on

Tobago. Their unfailing good cheer, their willingness to

include me in their lives, and their friendship made

research in a foreign country for extended periods a joy.

Ricarda Solomon also provided a home on Tobago for part of

my stay. In addition, her enthusiasm for my work was

infectious, keeping my own enthusiasm high. She also

introduced me to the Tobago Tropical Riders, who supplied

many hours of diversion on rides throughout the island.









Dexter Harris, of Signal Hill, served as my principal

assistant throughout most of the research. His enthusiasm

was also infectious, as was his willingness to work. Above

all, however, his humor and his ability to put up with my

out-of-place-on-Tobago American impatience is greatly

appreciated. Leon Duncan and James Trim both volunteered

their time during portions of the fieldwork. James showed

me several sites in a short period of time, sites that would

otherwise have taken me weeks to locate. Leon helped

excavate test pits at Les Coteaux Estate, rapidly

accelerating that phase of research.

Excavations at Courland Estate were undertaken with the

help of Dennison Herbert, Vivien Lincoln, Maxson Ramsey,

Dave Webster, Emile Williams, and Roland Williams, all of

Black Rock. Though none had previous experience in

archaeological fieldwork, all learned quickly. Their

constant high spirits more than offset the tedium of

archaeological excavation. Surveying equipment used during

those excavations, as well as the services of a trained

surveyor, were provided through the Tobago House of

Assembly, who thus continued their long-term support of the

Tobago Archaeological Program. Permission to work at the

Courland estate village was granted by Neal and Massey

Corporation, Trinidad. The coarse earthenware ceramics from

the site were analyzed by Jim Peterson.


vii









David Phillips shared his extensive knowledge of local
history and his valuable collection of historic maps and

documents. His library on general Caribbean history is

unequalled on the island, and provided me with reference

materials during my stay on the island. Leo Cooper, Richard

Grant, Clarence Thomas, Mrs. Quashie, Lloyd Joseph, Mr.

Spence, Archie Halifax, and Conrad Price served as local

informants, answering my questions and showing me--or giving

me directions to--sites. Though this list is not

exhaustive, it is indicative of the unfailing willingness of

Tobagonians to help strangers. Throughout my stay on

Tobago, I was never at a loss for someone to talk to.

Though I was only able to visit Trinidad on two

occasions, the help I received there equalled that of

Tobagonians. Keith Laurence, Bridget Brereton, and Selwyn

Carrington, of the University of the West Indies, St.

Augustine, History Department, all discussed various aspects

of my research with me, while Dr. Laurence was instrumental

in getting me access to the William Young manuscripts at the

UWI library. Claire Broadbridge, Director of the National

Museum of Trinidad and Tobago, visited my research sites and

provided encouragement. She also offered housing on

Trinidad should I need it.

Final production of this dissertation has been a long

process, aided along the way by many people. Bryan Page

kindly abandoned his office in the University of Miami


viii









Anthropology Department so that I would have a place to

write, while his colleagues, Ann Brittain, Robert

Halberstein, Edward LiPuma and Linda Taylor have all

provided moral support and occasional guidance. Natasha

Elmslie had an unfailingly sympathetic ear and cheerful

words of encouragement. The Departments of Architectural

Engineering and Geography, University of Miami, allowed me

to use their computers to produce the graphics included in

this dissertation, as did the University of Florida

Department of Surveying and Mapping and the University of

South Carolina Department of Civil Engineering.

While many fellow students at the University of Florida

were important in my graduate career, only four will be

mentioned here. Diego Hay read my first draft and helped me

better understand the economic history of the Caribbean.

Greg Smith's editorial comments on various of my writings,

including the proposal that received the majority of my.

dissertation funding, greatly strengthened my work. Nina

Borremans, because she shared my office for so long,

actively participated in the genesis of many of my ideas

during the earliest stages of my research. Anne Stokes, by

believing in my professional capabilities, has provided

confidence-building support for many years. More

importantly, all are good friends.

Lastly, this dissertation would not have been possible

without the support of those closest to me. My wife,









Maureen E. Vicaria-Clement, put up with a more than six

month separation during our first year of marriage so that I

could conduct fieldwork, and accommodated my long working

hours since I returned to the US. In addition, she

cheerfully worked full-time to support me while I wrote,

while simultaneously pursuing her own graduate career. My

parents, Mug and Jackie Clement, supported me throughout

graduate school. They recognize the value of education, and

never demurred when I was forced to rely on them for moral

or financial support. I hope I can show the same wisdom and

patience to my children that my parents have shown to me.















PREFACE


The government of the Caribbean island of Tobago has

recently embarked on an ambitious plan to develop the island

for tourism. In doing so they enter into direct competition

with more established Caribbean destinations. Although the

present development plan focuses primarily on the "sun and

fun" vacationers that typify Caribbean tourism, the

government recognizes that due to the relatively undeveloped

status of the island the natural environment offers an

additional selling point.

The underdevelopment of Tobago has resulted in the

preservation of a broad variety of archaeological sites on

the island. Most have yet to be systematically explored.

In recognition of the potential value these cultural

resources have for tourism development, the Tobago

Archaeological Program, a joint effort of the Tobago House

of Assembly and the University of Florida Institute of

Archaeology and Paleoenvironmental Studies, was initiated to

conduct archaeological research on Tobago in 1986. The

focus of the Tobago Archaeological Program to date has been

on the remains of the many sugar estates on the island. The

survey results reported here continue that effort. Future









research will focus on additional site types, both

prehistoric and historic.

Sugar estates have been the focus of the Tobago

Archaeological research program because they are the most

visible extant material evidence of Tobago's past. All date

primarily from the mid-eighteenth to the mid-nineteenth

century, and record the colonization of Tobago by the

British in the 1760s, her rise to prominence as the foremost

sugar-producing Caribbean island at the turn of the

nineteenth century, and her gradual fall into obscurity with

the eventual collapse of the Caribbean sugar industry.

Although the island was occupied by the French on two

occasions after British colonization in 1763, for the most

part it remained in British hands. In 1898 it was made a

ward of the neighboring and much larger island of Trinidad,

the two becoming an independent republic in 1962.


xii















TABLE OF CONTENTS

ACKNOWLEDGEMENTS .......................................... iv

PREFACE..... .... ..... ...................... .............. xi

LIST OF TABLES............................... .............xvi

LIST OF FIGURES.........................................xviii

ABSTRACT ...................... .............. .............. xix

CHAPTER 1. THE SAINT DAVID'S PARISH ARCHAEOLOGICAL
SURVEY......................... .... .................. 1

Research Goals and Significance...................... 1
Methods ............................................... 5
Organization .............................................6

CHAPTER 2. PHYSICAL ASPECTS OF TOBAGO.....................8

Physical Description ................................ 8
Geomorphology............................ ............10
Topography and Hydrology............................ 14
Climatic Conditions. ................ ..... .18
Epidemiology .............................. ...... 19
Modern Settlement...............................20

CHAPTER 3. FACTORS EFFECTING EARLY COLONIZATION
EFFORTS..............................................24

Early History.........................................24
Sugar ................................................25
Slavery............................................. .32
The Settlement of Tobago............................35
Initial Settlement................................... 38

CHAPTER 4. SUCCESSFUL COLONIZATION..........................40

Introduction.........................................40
Land Sales...................................................41
The Tobago Economy ..................................49
1763-1781................................... 51
1781-1793.. ................................... 56
1794-1800....................... ........... ....63


xiii









CHAPTER 5. DECLINING FORTUNES .............................67

1800-1807 ......................................72
Abolition and Amelioration ..................... 75
Apprenticeship ................................. 81
Emancipation.. .................................. 83
Metayage............ ........ ....... ..........87
Encumbered Estates............................ 93

CHAPTER 6. BACKGROUND TO ARCHAEOLOGICAL RESEARCH..........95

Research Design......................... ........... .96
The Study Area ..................................... 97
Methods......... ................. ........ ......... 99
Summary of Estate Features......................102
Crushing Mills and Power Sources...............103
The Sugar Works............................... 107
Estate Houses.................................114
Estate Villages...............................115
Summary... ... ........ .. .. .... ......... ..9.......... .. 117

CHAPTER 7. RESULTS OF REGIONAL SURVEY...................119

Site Descriptions................................121
Adventure Estate ............................. 121
Amity Hope Estate......... ..................... 132
Arnos Vale Estate .............................134
Castara Downs Estate........................... 137
Courland Estate................. ...............138
Craig Hall Estate.............................138
Culloden Estate.................... ............139
Dunvegan and Providence Estates................141
Franklyn's Estate...........................144
Golden Lane Estate...........*..................145
Highlands Estate................. ..............147
Indian Walk Estate..............................148
King Peter's Estate............................. 150
Les Coteaux Estate..............................151
Lower Quarter Estate...........................151
Mary's Hill Estate ...........................153
Mt. Dillon Estate .............................155
Orange Hill Estate............................. 156
Providence Estate.............................. 156
Runnemede Estate............................. 156
Whim Estate........................ ..... ..... 159
Woodlands Estate............. .................. 161
Additional Structures.........................162
Summary of Regional Survey.........................164


xiv









CHAPTER 8. RESULTS OF INTENSIVE SURVEY.................166

Courland Estate...................................... 166
Previous Research ............................ 169
Additional Research............................. ..173
Area 1................................ ........175
Area 2 .................. ....................... 180
Area 2 Artifacts.............................187
Area 3.........................................194
Les Coteaux Estate ........... .... ............... 194
Orange Hill Estate..................................207
Summary of Intensive Survey........................ 212

CHAPTER 9. A REGIONAL PERSPECTIVE......................217

Constraints to Production and Layout................217
A Model Estate ...................................... 223
The Estate House................................225
The Estate Village............................231
A Dynamic Perspective ................................ 232
Slave Life....................... .......... ....... 236
Free Blacks and Indigenous Inhabitants.............248
Free Laborers ..................................... 250
Conclusion.............................. .... ..........254

REFERENCES CITED.........................................259

BIOGRAPHICAL SKETCH ....................................273















LIST OF TABLES


Table 2-1. Average rainfall in Tobago....................19

Table 4-1. Land sales on Tobago...........................42

Table 4-2. Distribution of land grants ....................43

Table 4-3. Per acre cost of land grants by parish.........47

Table 4-4. Per acre cost of land grants, 1765-1771........47

Table 4-5. Intended disposition of lands, 1765............48

Table 4-6. Cleared lands, 1771-1775......................49

Table 4-7. Cleared lands by parish......................49

Table 4-8. Sugar mills, 1771-1775........................50

Table 4-9. Sugar exports, 1770-1780.......................52

Table 4-10. Cotton exports, 1794-1809......................53

Table 4-11. Island population, 1770-1780..................54

Table 4-12. Island population by parish, 1770-1780........55

Table 4-13. Population statistics, 1780....................57

Table 4-14. Sugar and cotton production, 1785-1789........58

Table 4-15. Estates producing sugar, cotton and indigo
by parish, 1786....................................... 60

Table 4-16. Crop distribution by parish, 1786.............60

Table 4-17. Sugar mills, 1786.............................61

Table 4-18. Island population by parish, 1786.............62

Table 4-19. Population densities and ratios, 1786.........62

Table 4-20. Volume of exports, 1794-1800.................64


xvi









Table 4-21. Income of an idealized estate producing 150
Hhds. (99 tons) of sugar with 200 slaves, 1796-
1798.... .... ....... .................. ..........65

Table 5-1. Income of an idealized estate producing 150
Hhds. (99 tons) of sugar with 200 slaves, 1805-
1807...................... ..... .. .... .......... ..... 68

Table 5-2. Sugar estates in cultivation for various
years ................................................69

Table 5-3. Sugar exports, 1800-1809.....................75

Table 5-4. Change in slave population, 1808-1811...........78

Table 5-5. Sugar exports, 1814-1869, 1872-1888 and 1890-
1891............................... .......... ......... 79

Table 5-6. Per diem pay scale for apprentice labor,
1836............................ ......... ............ 82

Table 5-7. Change in sugar production during first year
of apprenticeship, St. Paul's Parish.................84

Table 7-1. Summary of estate components identified
during the regional survey.......................... 123

Table 7-2. Estate and lot ownership for various years....124

Table 7-3. Summary of St. David's Estates, 1811..........128


xvii















LIST OF FIGURES


Figure 1-1. Tobago Parishes.............................. 2

Figure 2-1. Physical features.............................9

Figure 2-2. Principle geologic structures................11

Figure 2-3. Topographic and hydrologic regimes.............15

Figure 2-4. Principle roads and towns.....................21

Figure 6-1. Providence Sugar Factory, ca. 1830...........109

Figure 7-1. St. David's Parish Estates...................122

Figure 7-2. St. David's Parish Lots......................129

Figure 8-1. Courland Estate.............................. 167

Figure 8-2. Courland Sugar Factory........................171

Figure 8-3. Courland Estate Village and Old Estate
House Complex ............... .................... 176

Figure 8-4. Courland Old Estate House.....................178

Figure 8-5. Courland Estate Village Structures A and B...184

Figure 8-6. Les Coteaux Estate...........................195

Figure 8-7. Les Coteaux Sugar Factory Complex............ 198

Figure 8-8. Les Coteaux Estate House....................201

Figure 8-9. Orange Hill Estate...........................208

Figure 8-10. Orange Hill Estate House.....................213


xviii















Abstract of Dissertation Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy

LANDSCAPES AND PLANTATIONS ON TOBAGO:
A REGIONAL PERSPECTIVE

By

Christopher Ohm Clement

May, 1995




Chair: Peter R. Schmidt
Major Department: Anthropology



Final colonization of Tobago occurred in 1763 when the

island was ceded to Great Britain by the Treaty of Paris.

Almost immediately, efforts were made to put the land into

sugar production. The survey reported here focused on

locating all extant remains associated with sugar estates in

St. David's Parish, covering an area of approximately 8720

acres (13.6 square miles). These include primarily sugar

factories where muscovado sugar, molasses and rum were

produced, estate houses where the estate owner lived, and

estate villages where the labor used on the estate was

housed. A variety of ancillary structures may also be

present on a given sugar estate.


xix









The survey located remains associated with 20 of the 22

sugar estates extant in St. David's Parish in 1811. These

included 22 sugar factories, 15 estate houses and three

estate villages. Based on these results, a model of

plantation layout was formulated. The principal factor

affecting layout is the location of the sugar factory.

Factories are sited with primary reference to a water source

for rum production and access to transport. Estate houses

are located in peripheral positions overlooking factory

locations. Secondary factors affecting estate house

location appear to be visibility and view, discussed with

reference to internal functions enhancing estate operation,

and external functions enhancing the status of the planter.

The concept of a "premier estate" that produces goods for

sale to other estates is introduced, and preliminary

archaeological and historical criteria by which such estates

can be defined are presented.

Limited subsurface survey and excavation was undertaken

in one estate village. This program was intended to reveal

the internal layout within the village, but met with only

limited success. Sufficient material was recovered,

however, to give a preliminary view of slave life on Tobago,

discussed with reference to the economic history of the

island and with reference to first-hand observations

presented in contemporary, often unpublished, sources.














CHAPTER 1
THE SAINT DAVID'S PARISH ARCHAEOLOGICAL SURVEY


The archaeological survey reported here examines the

settlement pattern of sugar estates within St. David's

Parish, one of seven parishes that make up the Caribbean

island of Tobago (Figure 1-1). These parishes were defined

by survey between 1763 and 1765 (Niddrie 1961) after the

island, whose ownership had been in dispute throughout the

265 years since its discovery by Columbus in 1498 (Archibald

1987:6), was finally ceded to the British by the Treaty of

Paris in 1763 (Ragatz 1963). St. David's Parish covered an

area of 8720 acres (approximately 13.6 square miles) as

originally surveyed (Jefferys 1778). In 1811 22 sugar

estates were in operation within the parish (Young 1812a).



Research Goals and Significance

The central research question addressed by the St.

David's Archaeological Survey is: how did the major

cultural groups occupying Tobago during the period of

British colonial occupation view and utilize the available

landscape? Primarily, these groups consisted of European

planters and African slaves. Each group had different and

largely separate goals and needs rising from their disparate














cultural backgrounds and their dissimilar roles within the

plantation production system. Both groups met these goals

and needs by accessing the available natural environment

using familiar, culturally-derived techniques appropriate to

their African and European backgrounds.

The primary goal of the Saint David's Survey was to

generate a model to account for the patterned arrangement of

sugar estates on Tobago with specific focus on the location

and layout of the structures present on those estates.1

Higman (1988) has presented a model of plantation layout

which forms the departure point for this dissertation. His

research is derived from a collection of 1000 eighteenth and

nineteenth century estate plans in the National Library of

Jamaica showing the internal structure of the mapped

properties. Higman's documentary sources were created

primarily to show estate boundaries and the locations of

buildings and activity areas relative to each other. This

focus on the cultural environment built by the Jamaican

planters was at the expense of detail relating to the

natural environment.2 Higman's analysis is therefore


1 These include primarily estate houses, sugar
factories and estate villages. A variety of other
structures may also be present on an estate.
2 Natural features are incorporated into the Jamaican
plans only when they have direct relevance to the economic
value of the estate. Thus, rivers that supply water to
drive the water wheel are commonly represented while
alternative water sources that may have other uses are
omitted.










limited both by the difficulties early cartographers had

portraying three-dimensional space in a two-dimensional

medium before the advent of contour lines and by the

omission of many natural environmental features. As a

result, his model is of limited utility to anthropologists.

The internal patterning of estates, both within and

between structures and areas, reflects constraints imposed

by the natural environment. Internal patterning is also

affected by the culturally derived preferences of the

planters who built the estates. Without a clear

understanding of the natural constraints to estate layout

cultural preferences are masked by unclear variation

resulting from natural conditions. To understand and

explain cultural preferences a model that better

incorporates environmental constraints is necessary.

This dissertation presents a model of plantation layout

that initially focuses on the natural environment. With

constraints to layout resulting from environmental factors

such as local topography and hydrology understood, it

becomes possible to profitably examine the choices made by

the planters in establishing a particular layout. These

choices reflect both the economic goal of sugar production,

that of amassing funds, and culturally dictated preferences

for one location or layout over another. These include

primarily the selection of estate lands with minimal

impediments to transport and construction of the built











environment to reflect their British heritage and cultural

affiliation.



Methods

The individual methods adopted here are standard

practice for prehistoric and historical archaeologists. As

integrated elements in an overall research design these

methods have not been applied by plantation archaeologists.

The specific methods included:

1--A documents search of primary and secondary
sources to identify sites and their approximate
locations, and to create a historical context
within which the research results could be
understood.3

2--A regional surface survey to physically locate
the material remains of identified sites and the
local environmental contexts within which they
occur. Based on this survey, broad patterns of
site layout are identified and an initial model
formulated.

3--Intensive surface survey at selected sites to
reveal specific variation not accounted for by the
initial model.

4--Limited excavation at an estate village to
recover archaeological data that was not otherwise
available relating to the village's internal
structure.





3 In the course of the documents search data were
encountered which did not have direct relevance to the
research problems addressed. Where these data are not
otherwise available in the published literature or appear in
obscure or rare books they are included in this
dissertation, primarily in tabular format, to increase their
accessibility.











Organization

The structure of this dissertation reflects the methods

employed. The first part, Chapters 2 through 5, is

primarily derived from the documents search. It presents

the historical and environmental context within which the

settlement of Tobago occurred. Chapter 2 describes the

island's physical features, features which constrained

settlement in some areas while encouraging settlement in

others. Chapter 3 addresses the question of why, within the

context of a rapidly developing Caribbean economy, permanent

settlement did not occur on Tobago until the mid-eighteenth

century. Chapters 4 and 5 present an economic history of

Tobago. While several good, book length economic histories

of the Caribbean have been published (e.g. Curtin 1990;

Green 1976; Knight 1978; Ragatz 1963; Williams 1970) only

one focuses specifically on Tobago (Nardin 1969). As it is

in French and has only a limited distribution, Chapters 4

and 5 are presented to familiarize the reader with economic

trends that effected Tobago.

The second part of the dissertation, Chapters 6 through

8, is archaeologically oriented. Although it reflects

information encountered in the documents, particularly

spatial information projected graphically, for the most part

Chapters 6 through 8 present the approach to and results of

archaeological research. Chapter 6 discusses the survey

research design, derived from a materialist theoretical











perspective. Chapters 7 and 8 present the data recovered

during the course of archaeological research--Chapter 7 the

results of the regional survey and Chapter 8 the results of

the intensive survey and limited excavation.

In the final chapter, Chapter 9, synchronic and

diachronic models of estate layout are presented. They are

based initially on a functional interpretation of building

location and layout. In turn, instances where enhanced

function does not appear to be a principal goal of the

builders are specifically defined. In these instances more

speculative cognitive or symbolic explanations are

discussed. Though the recovery of material culture from

subsurface contexts was not a primary goal of this research,

a discussion of the artifacts recovered during excavations

at one estate village is presented.















CHAPTER 2
PHYSICAL ASPECTS OF TOBAGO


Physical Description

The Caribbean island of Tobago is situated at latitude

1115' N and longitude 60040' W, the extreme southeastern

point of the Lesser Antillean island chain. Its closest

neighbor is the island of Trinidad, 18 miles to the

southwest, while the island of Grenada lies approximately 80

miles to the northwest.

Tobago is small, covering an area of approximately 116

square miles (Figure 2-1). The island trends from northeast

to southwest, and is approximately 26 miles long by eight

miles wide at its widest point. A typical width, however,

is more on the order of three to five miles. The most

prominent feature of the island is the dorsal main ridge,

which extends about 13 miles southwest from the northeast

end of the island. Roughly 550 to 580 meters in height, the

ridge is not dominated by any single peak. Rather, there

are several peaks over 520 meters in height distributed all

along the ridge-line. The northern and eastern flanks of

the main ridge slope steeply down to the sea, while to the

southeast they are somewhat less steep. To the southwest,

foothills of the main ridge give way to rolling terrain, and
























82
boo.


-0

tI


IEDDI




n IO




0 1' -
lafei
aM B
R be e eL




o n 1 0 1


o
:D
0 a)

PD -

E- 0
006











eventually to a relatively flat littoral plain at the

island's extreme southwestern tip at Crown Point.

The British colonization of Tobago was undertaken with

the express intention to create an agricultural economy

based on the large-scale production of crops for export to

foreign markets. At the time of settlement it was widely

recognized that sugar was the most lucrative of these crops.

The configuration of early settlement reflects the perceived

suitability of lands for the production and processing of

cane. In the eyes of the would-be planters, the most

important considerations in the choice of plantation lands

were topographic and, secondarily, hydrologic constraints.

The factors effecting island topography and hydrology rest

on the underlying geologic structure of the island (Figure

2-2).



Geomorphology

The most recent geomorphological studies of Tobago

indicate that the island's current position at the

northeastern corner of the South American continental shelf

is serendipitous. Rather than being closely related to the

South American continent, as Trinidad is, it now appears

that the geologic components of Tobago are petrographically

and geochemically distinct from those of Trinidad, despite

their close proximity (Wadge and McDonald 1985), and that

the two islands are separated by a major fault zone



















'a
M


0


0 o" o* o
o o





.0 I.E I -, I
tiic
'ik -gi 2
-5W *J OS
S2, ^| ie
a, s~lS
wu3 ,o ct
S5c d1d
Ik lm
D-i P^ra^











(Robertson and Burke 1989; Speed et al. 1989). Instead,

Tobago is the eastern-most member of an oceanic island

archipelago that formed some 120 million years ago.

Subsequently, tectonic movement resulted in a collision

between this archipelago and the South American continental

shelf. This gradual collision proceeded from west to east,

with Tobago being the last island involved. By a complex

process, then, it, along with the islands of the Dutch

Antilles and several of the Venezuelan possessions, was

accreted to the continental shelf by tectonic drift some 65-

70 million years ago (Snoke et al. 1990b).

While the relationship between Tobago and the rest of

the Lesser Antilles to the north is more uncertain, Tobago

appears to be geomorphologically distinct from the more

northerly members of the island chain. Where the majority

of the Lesser Antillean islands are characterized by

features of recent or current volcanic activity and a

volcanic core surrounded by effluvial skirts sloping gently

to the sea (Niddrie 1961:2), the rocks of Tobago are

primarily a complex intermixture of igneous and metamorphic

origin (Snoke et al. 1990a, 1990b).

The geologic core of Tobago, the basement rocks around

and upon which the island is formed, is composed of three

pre-Cenozoic belts trending east-west and roughly

transecting the island (Snoke et al. 1990b). The oldest of

these belts, the North Coast Schist (NCS), contains rocks of











volcanic origin that were heated, compressed and tilted by

an intrusive group of rocks which had solidified far below

the earth's surface. The NCS forms Tobago's Main Ridge and

the steeply sloping north coast. The plutonic intrusion

caused intensive warping, deformities and fractures in the

NCS, and are the second component of Tobago's three pre-

Cenozoic belts. The plutonic intrusion, together with the

NCS, forms the jagged interior of the island. The intrusion

also uplifted other rocks of volcanic and sedimentary

origin, the Tobago Volcanic Group (TVG), which overlay the

plutonic group. The TVG is the final component of Tobago's

geological underpinnings, and is exposed on the southern

skirts of the island, extending around the southwestern

flanks of the main ridge.

Once Tobago's core had formed, the genesis of a fourth

rock group was initiated by erosion/deposition of existing

rock and by offshore coral growth. The primary component is

coralline limestone, which makes up the coral lowlands that

dominate the southwestern end of the island. The presence

of this formation is indicative of as yet undated tectonic

uplift and/or sea level subsidence (Snoke et al. 1990b).

This may have occurred in two stages, as a terrace is

evident in the coral lowlands at about 20 meters above sea

level (Niddrie 1961:5).











Topography and Hydrology

The four rock groups which form Tobago are

differentially resistant to erosion. In addition, their

resistance to erosion is enhanced or mitigated by their

slope. These factors allow the division of the island into

four topographic and hydrologic regimes (Figure 2-3). As

moisture falls on the island in the form of rain, it forms

rivulets, streams and rivers which carry it to the sea.

Depending on the erosional resistance and slope of the

underlying geological structures, these drainages may be

short and steep or long and gently sloping.

The shortest and steepest drainages exist on the

northern slopes of the main ridge, and run to the Caribbean

Sea. While the NCS which underlies the ridge has a high

erosional resistance, it is steeply sloped. Runoff water is

thus fast moving and creates steep declivities, particularly

in the presence of the localized faulting characteristic of

the NCS. Little southern drifting of the headwaters of

these streams has occurred, an action which would have

lengthened their courses, because at the top of the ridge

the transported water has not yet developed either the speed

or the volume which would allow it to downcut the underlying

structure.

A second topographic and hydrologic regime exists on

the southeastern flanks of the main ridge. Here the

underlying structure consists of the intrusive plutonics and

























M
B"


- 0%
0
<
51


U

0
*-


0








a
o




Ia



0


E-


0 3
a 0

0
0000
Zmli
SI I I
I I I I1











TVG groups. Both erosional resistance and slope are less

acute, resulting in a series of fairly long but deeply

incised drainages. Shelfs of more resistant rock occur at

elevations of about 60 meters above sea level and lower

shelfs cut by wave action when sea level was higher relative

to land surface occur at about 20 and 7.5 meters above sea

level. All cause waterfalls or rapids at these elevations.

In addition to falls and rapids, the rivers and streams of

the southeastern flank are characterized by low-lying,

occasionally broad floodplains as they approach the

southeastern coast. Due to the size of their drainage

basins, all are perennial and subject to frequent and

violent flooding during the rainy season. In contrast,

during the dry months from December to June, the water

courses may not even have sufficient flow to break through

the sand bar barriers erected by wave action at their mouths

(Eubanks 1992:57; Niddrie 1961:4-5). Drainages in this, the

island's southeastern slope, feed and include the Bacolet

River, the East and West Hillsborough Rivers, the

Goldsborough River, the Richmond River, the Argyle River,

and the Louis d'Or River.

The sole member of the third topographic and hydrologic

regime is the Courland River. Arising in the NCS group, the

Courland has managed to break through to the broad, gently

sloping members of the TVG that occupy the area immediately

southwest of the main ridge. While the same shelves that









17

affect the southeastern drainages affect the Courland, the

more gently sloping terrain has resulted in a decreased flow

velocity and a corresponding reduction in river downcutting.

The hills in the Courland drainage area, while still steep,

are thus less high above the river than their counterparts

on the southeastern slope. Decreased slope has also allowed

the river to take on a more meandering aspect than its

counterparts, creating a rolling countryside and reducing

the violence of seasonal flooding (Niddrie 1961:4).

The final topographic and hydrologic regime covers the

coral lowlands at the southwestern extremity of the island.

Almost flat, drainage in this area occurs more by seepage

through the limestone itself, and rather less by surface

runoff. Surface water is scarce during the dry season,

occurring most frequently as springs where underlying TVG

rocks approach the surface. The frequently heavy

precipitation of the rainy season, however, has produced a

system of shallow (ca. 35 ft) valleys throughout the coral

lowlands, providing at least some topographic relief

(Niddrie 1961). The presence of at least two volcanic

"necks" (the more erosionally resistant core of extinct

volcanoes) in the vicinity of the village of Mt. Pleasant

contributes further topographic variety (Eubanks 1992).











Climatic Conditions

The two most important elements of Tobago's weather

patterns affecting cultivation are precipitation and the

velocity and direction of the prevailing winds. As with the

other islands of the Lesser Antilles, Tobago experiences a

very predictable breeze. Blowing on a year-round basis at a

fairly steady 5-12 knots, the breeze is from the northeast

during most of the year. During mid-summer, however,

without losing any velocity it may shift towards the south,

picking up additional moisture, raising humidity and

resulting in at least some rainfall throughout the year

(Niddrie 1961:5-6).

By far the majority of the rainfall, however, is

seasonal. Although the amount of seasonal rain varies

throughout the island (Table 2-1), Tobagonians generally

refer to a wet season running from June to December and a

dry season extending from January to May. Wet season

rainfall usually occurs in the form of heavy convectional

thunder storms of short duration, producing locally violent

winds that last for but a short time. More continuous but

less frequent rains are delivered by frontal systems

accompanying the Intertropical Convergence Zone, and

rainfall of up to one inch per hour has been recorded during

these events. Fortunately for the inhabitants of Tobago,

the island lies to the south of the main hurricane belt.

Although tropical storms and hurricanes do occur, they are









19

rare, and tend to be less destructive than similar storms to

the north. The last major hurricane to impact Tobago was

Hurricane Flora in 1963. Prior to that, one must go all the

way back to 1847 for a storm of similar magnitude, although

smaller storms hit the island in 1780, 1790, 1831, 1891,

1909, 1918, 1928, and 1933 (Eubanks 1992:60-61; Niddrie

1961:5-8).

Table 2-1. Average rainfall in Tobago
Month
Monh Average rainfall (in.)

January 4.8
February 2.8
March 2.3
April 3.7
May 5.6
June 9.2
July 9.6
August 8.8
September 8.9
October 9.1
November 9.4
December 11.4
Total 85.6
After Niddrie 1961:6



Epidemiology

A third consideration for the early planters when

selecting their lands was epidemiological. Tobago's river

valleys tend to be deep, with a corresponding high degree of

humidity, and river and stream mouths are frequently blocked











by wave-borne sand bars in the dry season, creating pools

stagnant water. In both instances, an ideal mosquito

breeding ground is present. Where these features are

coupled with coastal lagoons and mangrove swamps, malarial

and other tropical infections became a real threat. Indeed,

the early planters were highly cognizant of the fact that in

Tobago's tropical climate, death by malaria or other

tropical disease was a very real possibility (Young 1812a).

Although they may not have recognized the disease vector,

they attempted to minimize infection, avoiding high risk

areas by locating in elevated positions where possible.

Settlement pattern reflected these decisions, and in large

part, these patterns persist today (Niddrie 1961:8).


Modern Settlement

Most of Tobago's existing road network has been in

existence since at least the early nineteenth century. The

modern towns and villages, on the other hand, were primarily

founded in the post-emancipation period, after 1838, when

former slaves left the estate villages provided them by

estate owners. Figure 2-4 shows these features.

Today, life on Tobago revolves around the capital town

of Scarborough. The Government is the single largest

employer on the island, and most government offices are

located in the capital. Banks and many small businesses are

located in Scarborough as well. The largest population























m

4=


a aI
94






.--
o
Pc


Er .


*M

S,3
I R4J *
U2 *











concentration is within the town's environs, while many

other people commute in on a daily basis, using both public

and private transportation.

Though neither compares with Scarborough, two

additional population centers are Roxborough and Plymouth.

Roxborough is located towards the eastern end of the island

on the southeastern coast, and since travel-time to

Scarborough from there is fairly long, it duplicates many of

the services available in the capital. It is likely that it

existed prior to emancipation, at least as a village, though

none of the contemporary maps confirm this.

Plymouth, in contrast, was one of the islands's

earliest permanent settlements (see Chapter 4). Indeed, it

may have been the very first town, as the Dutch settled

nearby as early as 1628 (Boomert et al. 1987:9-10).

Plymouth is located towards the western end of the island,

and is the only major town on the northern coast. Though

travel to and from Scarborough is easier than from

Roxborough, Plymouth too duplicates many of the functions of

Scarborough. Plymouth serves a portion of the burgeoning

tourism industry as well. The luxury tourist hotels are

located nearby, and since at least some tourists do not

bother to rent transport, Plymouth serves as a marketplace

for groceries or other necessary items. Plymouth also

maintains much of the "quaintness" of former times, and many

visitors to the island spend time in the town sightseeing.











Since the development of Crown Point Airport at the

extreme southwestern tip of the island, the area in its

vicinity has been developing rapidly. This area, too,

serves primarily tourists, though of a different kind. The

majority of the island's guest houses--small, inexpensive

hotels offering functional living spaces--are located near

the airport in the villages of Bon Accord and Canaan,

principally in the former. These guest houses attract a

less opulent clientele than the luxury hotels near Plymouth,

and many small businesses have developed to serve them.

Souvenir and grocery shops and stands abound, as do small

restaurants and bars. The village of Buccoo, on Buccoo Bay,

is rapidly being transformed from a fishing village into

something more akin to Bon Accord, primarily due to its

proximity to Buccoo Reef.

The remainder of the villages on Tobago remain largely

unchanged. Most developed at around the time of

emancipation, when freed slaves left the estates to pursue a

livelihood based on peasant agriculture and wage labor on

plantations (Niddrie 1961--see Chapter 5). Villages located

in the interior of the island are primarily agricultural,

while those on the coast support both agriculture and the

local fishing industry. Examples of the former include

Bethel, Les Coteaux and Mt. Pleasant, while examples of the

latter include Castara, Charlotteville and Mt. St. George

(Figure 2-4).















CHAPTER 3
FACTORS EFFECTING EARLY COLONIZATION EFFORTS


Early History

Tobago's early history is complex. From its first

discovery by Europeans in 1498 until its final recapture by

the British in 1804, the island changed hands more

frequently than any other in the Caribbean (Niddrie

1961:42). The colonial flags of England, France, Spain,

Holland, and the Duchy of Courland (modern-day Latvia), as

well as the independent Republic of Trinidad and Tobago,

have all flown over the island at one time or another.

Comprehensive treatments of the early history of Tobago are

available in Archibald (1987), Eubanks (1992) and Lichtveld

(1974). Rather than simply reiterating their discussions,

this chapter presents a broader treatment of events

affecting the early history of Tobago. Foremost among these

was the adoption of sugar cane as the major cash crop of the

Caribbean, with the concomitant reliance on African slaves

as labor. The events which led to the primacy of sugar are

best understood by focusing on Europe, and on European

attitudes towards the Caribbean (Mintz 1985; Wolf 1982).











Sugar

Columbus's voyages of discovery were sponsored by the

Spanish crown, and Spain became the first dominant European

power in the Caribbean and the rest of the New World.

During the earliest period of Spanish supremacy there was a

brief fluorescence of agricultural production in the

American colonies. The Spanish recognized the potential of

sugar very early in their colonization efforts. Cane was

first introduced into Hispaniola by Columbus in 1493 on his

second voyage (Mintz 1985:32). By the mid-sixteenth

century, 40 to 50 sugar factories were in operation on

Hispaniola alone (Las Casas, in Williams 1970:26,519).

While these factories were fairly primitive when compared to

the nineteenth century technology, they produced copious

amounts of sugar (Williams 1970). During the initial period

of Spanish production, however, Caribbean sugar was mostly

sold in the extremely limited New World market, while the

more extensive Old World demand was supplied by the

Portuguese possessions in the Mediterranean and the Atlantic

(Williams 1970).

By the second quarter of the sixteenth century the

attention of the Spanish in the New World shifted away from

agricultural production. After 1520 the goal of Spanish

exploration was primarily the acquisition of precious

metals. Indeed, precious metals were so important to the

Spanish that one Historian states that "...it was gold which









26

determined the location of Spanish settlements, which led to

their concentration on the Greater Antilles and to their

neglect of the Lesser Antilles, except those which had

strategic significance for the protection of the trade

routes" (Williams 1970:24).

Initially, gold was recovered from deposits on

Hispaniola. These were rapidly depleted however, and the

focus of exploration shifted to other Caribbean islands and

to mainland Central and South America. The vast riches of

the Aztec and Inca Empires fired the imagination of

Spaniards (Williams 1970). Many residents of the Caribbean

re-emigrated to the mainland, while new arrivals from Spain

tended to bypass the Caribbean entirely. Interest in the

agricultural potential of the Caribbean declined as a

result. The Spanish colonies on Hispaniola, and

particularly Cuba, became key strategic points for

protecting Spanish gold and silver shipments during the

hazardous initial stages of the Atlantic crossing (Knight

1978).

Spanish dominance of the Caribbean lasted until the

second quarter of the seventeenth century. During this

period of Spanish hegemony no other European power possessed

both the strength and the desire to gain a foothold in the

Caribbean. It was not until the cessation, in 1621, of a

truce between the Spanish and the Dutch that any European

power could successfully challenge Spanish dominance. With









27
the end of the treaty, however, the Dutch quickly moved to

usurp Spanish power. They accomplished this by first

gaining control of the Atlantic sea-lanes. Dutch harassment

and eventual destruction of the Spanish navy opened the way

to settlement of the Caribbean by other European powers

(Parry 1963). The British quickly moved in, settling

Barbados and part of St. Croix (1625), Nevis (1628), Antigua

and Montserrat (1632), and St. Lucia (1638). They, in turn,

were rapidly followed by the French (Martinique and

Guadeloupe) (Knight 1978:37-38). It was also during this

period that European adventurers made the first serious

attempts to settle Tobago (Eubanks 1992:67).

British and French forays into the Caribbean were made

with the intent to establish agricultural colonies (Curtin

1990:77). Despite early Spanish success in cane

cultivation, however, the crop was not immediately adopted

by the British and French colonists. In part, this was

because a market was not immediately available to the

British and the French. Due to the nearly continuous

warfare between the various European powers during the

sixteenth and early seventeenth centuries, what little sugar

made it to the British and French home markets was very

expensive. The resulting price put sugar beyond the means

of the majority of the population. It was only with the

initiation of production in the British and French Caribbean

in the mid-seventeenth century that prices began to decline,









28
and popularity of the new commodity began to rise. From its

early beginnings as a tasty but rare condiment on the

European table, the market demand became increasingly

elastic and sugar production rapidly expanded (Mintz 1985).

During the first fifteen to twenty years of

colonization, after an initial period of experimentation

with a variety of crops, it became apparent that tobacco

production offered the most lucrative returns, and the early

successes of the new colonies were largely based on this

crop (Batie 1991). The economic potential of tobacco was

first realized by the British colonists of Virginia. They

first began growing the crop around 1616, and by 1619 a

planter could make profits of up to 200 yearly at a time

when the average laborer in England was making a mere 10

8s. per year (Batie 1991:39). The Caribbean colonists

quickly adopted tobacco cultivation.

The success of tobacco was so great that Europeans

emigrated to the new colonies in large numbers, either to

set themselves up as planters or to work as laborers for a

period of indenture, after which they could hope to be free

to buy land and start plantations of their own.

Predictably, the steady increase in the number of tobacco

planters and laborers soon caused production to outstrip

demand. By 1635 prices were in decline. Though this price

reduction affected all colonists, it was particularly hard

on those in Virginia, where few other crops could be grown.











To protect the colonies from price fluctuations, officials

in Virginia and the Caribbean agreed to increase the price

of tobacco artificially by severely limiting its production

in the Caribbean. The French were coerced by threats of

force into joining in this effort.

With the enactment of this agreement, the economy of

the Virginia colony at least was stabilized. In the

Caribbean, however, production of a new staple crop was

necessarily promoted. Initially, cotton was the dominant

replacement. It grew well in the Caribbean environment, and

the knowledge, technology and labor required for its

cultivation were minimal. In fact, cotton was so suited to

the Caribbean environment that by 1639 prices were dropping,

like those of tobacco had before, because of over

production. By this time, however, the preconditions that

would allow the successful cultivation of cane and

manufacture of sugar had been met (Batie 1991). This

initially occurred in Barbados.

Before sugar cane could be successfully adopted in the

Caribbean as the dominant crop, three preconditions had to

be met. The first preconditions relate, at least

indirectly, to the high cost of the equipment necessary for

sugar production. First, the islands upon which sugar

production occurred had to be safe from foreign attack.

Economically, it was poor practice to invest in sugar

production hardware if that hardware was liable to









30

destruction by foreign invaders. Second, individuals needed

access to sufficient capital to afford the initial

investments in sugar technology. Both of these

preconditions were realized in the Caribbean as a result of

earlier tobacco and cotton production, and by the

intervention of the Dutch.

In the early seventeenth century Britain was in the

depths of a depression and on the verge of civil war, and

many people chose to migrate to the New World. When tobacco

prices began to drop in 1635, British emigrants to the

colonies began to opt for the Caribbean, where a broader

variety of opportunities was available, rather than

Virginia. Barbados was a particularly desirable

destination, as its environment proved to be particularly

suitable for cotton production. Thus, by the time cotton

prices began to fall, Barbados already had a greater

population density than any other colony in the New World.

The sheer numbers of residents, particularly when combined

with Barbados' windward location (Curtin 1990), made the

island reasonably safe from foreign invasion. At the same

time, the success of cotton in Barbados created a sizeable

upper class, an upper class that could afford to risk

capital by investing in the equipment required for sugar

production (Batie 1991).

The final requirement for successful sugar production

was technical knowledge. The production of sugar is a











complex process, particularly in contrast to the relative

simplicity of tobacco and cotton production. With sugar,

aside from simply growing and harvesting the cane, one has

to know how to reduce the cane juice to sugar and molasses,

and how to produce rum. Knowledge of the processes was

fairly commonplace by the late 1630s, but talent

concentrated in other parts of the world. It remained for

the Dutch to import the crucial knowledge.

The Dutch had initiated settlement in the Caribbean

concurrently with the British and the French. However,

rather than choosing to settle arable islands as the British

and French had, the Dutch colonized the smaller, less

agriculturally productive islands of Curagao, St. Eustatius,

St. Maarten, and Saba (Knight 1978:37). Their intention was

to create trade entrep6ts, an activity which, on a larger

scale, had successfully supported the Dutch homeland. The

success of these incipient trading centers, however,

required a viable Caribbean economy. It was therefore in

the Dutch interest to help the other colonists. As part of

their campaign against the Spanish, the Dutch had earlier

taken Portuguese Brazil, challenging the united kingdoms of

Spain and Portugal.1 The Brazilian economy at that time

was dependent largely on sugar, and it was a relatively

simple matter to transport the knowledge of sugar production


During this period the Portuguese and Spanish crowns
were united, and any action against Portugal was an action
against Spain.









32

from Brazil to Barbados (Batie 1991:45); in need of a cash

crop to replace cotton and support the dense Barbadian

population, the island's officials simply looked the other

way. The Dutch, in turn, assured themselves of a ready

market for their goods, foremost of which were African

slaves.


Slavery

Europeans brought African slaves to the New World

shortly after initial settlement. As early as 1502, the

Spanish on Hispaniola began importing Africans (Rout 1976).

This was initially done as an experiment, as the Spanish

were quick to realize that the locally available labor,

decimated by European diseases and debilitating labor in the

fields and mines, was unsuited to the Spanish regime. By

1514, only 23,000 to 30,000 native inhabitants were left on

the island, an island that may have supported up to eight

million inhabitants in 1492 (Borah and Cook 1971-1977; Cook

1981). The Spanish travelled to other islands in search of

additional labor, and these islands, too, were soon

effectively depopulated.

While the enslavement of Africans was certainly

practiced by the Spanish in the New World, it was not until

the introduction of an economy based upon sugar production

that slavery in the Americas reached full maturity. This

initially occurred in northeastern Brazil. During the











period when Spain exercised exclusive control in the

Caribbean and amassed a fortune in gold and silver from the

conquests of Mexico and Peru, Portugal controlled an equally

lucrative empire centered about the Mediterranean Sea and

extending down the west coast of Africa. They also

controlled northeastern Brazil, where they quietly

instituted a plantation economy.

Not surprisingly given their previous experience with

the crop in their Old World possessions, the Portuguese

planters developed a sugar economy in Brazil. As had the

Spanish, they quickly recognized the susceptibility of the

local Native American populations to disease, and their

consequent unsuitability for labor (Rawley 1981). Indeed,

the situation in Brazil was exacerbated by the fact that

Native American slaves could easily absent themselves from

the plantations, fleeing to the interior where they could

re-institute the economic and cultural system that had

supported them in the past (Wagley 1971). Having been

exposed to Europeans and their diseases for decades,

however, and having immunity to a host of other tropical

diseases common to both Africa and the New World, in

Africans the Portuguese had the ideal labor force for New

World plantations. An additional advantage was that

enslaved African had little or no means of escape. As

Eubanks (1992:42) puts it: "they were as alien off the

plantation as they were on it."











When the Dutch conquered Portuguese Brazil in 1630

(Curtin 1990:91), they found a full-blown plantation economy

based on the production of sugar and the enslavement of

Africans already in place. Nevertheless, the Dutch

recognized that without a steady supply of new slaves this

type of economy could not last, since even with their

disease immunities the African population of Brazil was not

self-reproducing. This was due in part to the arduous

working conditions of the plantation regime, and in part to

the skewed sex-ratios of imported Africans--many more males

were imported than females (Curtin 1969, 1979). To ensure

the continued success of their new holdings, the Dutch

seized Portuguese-held African ports on the Gold Coast and

in Angola, securing for themselves a steady supply of slaves

(Curtin 1990).

With access to slaves and with growing entrep6ts in the

Caribbean in need of a viable market, the Dutch were willing

to share their knowledge of sugar production, stolen from

Brazil, with the British colonists on Barbados (Batie

1991:45). The first recorded shipment of sugar reached

England from Barbados in 1643 (Batie 1991:46). In that same

year, production was initiated on the British-held portion

of St. Kitts, and by 1644 the French had begun to produce

sugar on Guadeloupe. The sugar boom was on in the

Caribbean, and the rhythms of sugar production would

eventually dominate almost the entire archipelago.











The Settlement of Tobago2

With the beginning of the industrial revolution, sugar

was rapidly transformed from a luxury good, accessible only

to the rich, to a staple food additive demanded by the vast

European laboring population. It is within the context of

this rapid increase in demand that the eventual settlement

of Tobago is best understood. However, this did not occur

until 1765, 122 years after the initiation of sugar

production on Barbados. The question is, why, with the

feasibility of such a potentially lucrative crop widely

recognized, did Britain, France or Spain not bring Tobago

into sugar production at an earlier date? The answer lies

in a combination of factors, the most important of which is

that it was advantageous for each government to deny access

to Tobago to the others.

During the seventeenth century, when the agricultural

resources of the Caribbean began to thrive, the geo-

political importance of Tobago was recognized. With the

exception of Barbados, Tobago is the most easterly of all

the Caribbean islands. This was an era of sailing ships


2 Care must be taken when thinking of the "settlement"
of Tobago. Tobago was "settled" on numerous occasions prior
to 1763, most notably by the Dutch and the Courlanders in
the 17th century. In addition, while the island had neutral
status from 1748 to 1763, several individuals of various
nationalities maintained permanent or temporary residences
there, primarily for turtling. In this dissertation, the
term "settlement" is used to denote the period of permanent
occupation by British planters engaged in the cultivation of
cash crops.











and, from Tobago, sailing ships catching the prevailing

easterly trade winds could sweep the entire Caribbean island

chain, bringing naval pressure to bear wherever and whenever

the possessors of Tobago pleased. By the same token, ships

from other islands had a difficult time maneuvering to

Tobago in its upwind location. Thus, in the days of sailing

ships Tobago occupied a very strategic position relative to

the rest of the Caribbean. As the economic importance of

the Caribbean increased with the realization of sugar as a

cash crop, so too did Tobago's strategic importance.

Consequently, no European power could afford to have Tobago

colonized by another.

The strategic importance of Tobago lasted throughout

the age of the sailing ship. As late as the beginning of

the nineteenth century the rights to Tobago were still

contested by the French because of its coveted strategic

location. Indeed, French maps of Tobago made during the

1780s, and the road system along the rugged windward coast

that they constructed during their occupation of that period

indicate their preoccupation with Man o' War Bay at

Charlotteville. They envisioned this as a possible naval

depot from which to threaten the rest of the Caribbean, and

its potential drew them back to the island as late as 1803-

1804. The British, too, frequently included details of Man

o' War Bay on their maps (e.g., Jefferys 1765), indicating

that they also recognized this strategic potential.











Strategic location was the major factor which delayed

the occupation of Tobago. Contributing to this was the

incipient nature of cane cultivation and sugar production

and soil fertility on the established islands of the British

and French Caribbean. Following their successful

introduction to Barbados in the mid-seventeenth century,

cane cultivation and sugar production were rapidly

introduced to other British and French islands during the

late seventeenth and early eighteenth centuries. Their

spread was driven by the need to meet an ever-increasing

demand for sugar (Mintz 1985:36), as well as decreasing soil

fertility on long-established plantations, caused by

repeated mono-cropping and the corresponding decline in soil

nutrients (Ragatz 1963). Nevertheless, it took time for

sugar production to spread to all of the land suitable for

cane cultivation, particularly on the larger islands of

Jamaica and French Hispaniola (Haiti), and, to a lesser

extent, Martinique and Guadaloupe. Whatever the cause of

this continuous extension of cane cultivation, sufficient

unoccupied land was available on established islands until

the mid-eighteenth century.

Another factor contributing to the late settlement of

Tobago was the island's topography. As noted in Chapter 2,

Tobago is dominated by a mountainous interior. The sheer

ruggedness of the topography make the main ridge, roughly

two thirds of the island's total area, marginal at best for











sugar production. Transportation, from the cane fields to

the sugar works, and from the sugar works to shipping

points, would have been extremely difficult; maintenance

costs were high, both for the estate roads themselves, and

for the vehicles and the teams used to draw them. In short,

much of Tobago was less well-suited for sugar production

than many other Caribbean islands, and as a result it was

one of the last to be brought on-line. Even during the

height of its sugar production in the early nineteenth

century, Tobago had only 35,134 of its roughly 74,400 acres

occupied by sugar estates (Young 1812a).


Initial Settlement

The strategic location of Tobago, combined with the

availability of land on other islands and the unsuitability

of Tobago's topography for sugar production, acted to delay

the effective settlement of Tobago until the last half of

the eighteenth century. That strategic location was the

most critical factor is evidenced by the fact that when the

Treaty of Paris gave Britain the legal right to settle

Tobago colonization almost immediately began, with a letter

of patent dated 7 October, 1763. By 1765 an initial survey

had been completed which began laying out lots for estates

(Simpson 1765), and on 20 May, 1765, the first estate,

consisting of lots 7 and 8 in St. George's Parish, was sold











to Alexander Stevenson (Nardin 1969:298-299).3 This later

became known as Hope Estate.








































3 There is some contention about the primacy of this
sale. Woodcock (1866:41) says that the first lot sold, lot
1 in St. David's Parish, was sold to James Simpson on 20
March, 1766, while Archibald (1987:107) contends that
Simpson bought this lot at the first land sale in May of
1765.















CHAPTER 4
SUCCESSFUL COLONIZATION


Introduction

Tobago is one of the so-called "ceded islands" acquired

by the British as a result of the Treaty of Paris in 1763

(Ragatz 1963).1 With the acquisition of the ceded islands,

the British parliament imposed two conditions on settlement.

First, in response to concerns that most of the new lands

would remain idle in the hands of speculators, parliament

required steady and large payments on purchased land,

payments that could only be met by immediately putting the

land into production.

(Lands)...should be put up to sale at a price not
less than five pounds per acre of the lands that
were cleared and if the lands were uncleared at a
price no less than one pound sterling per
acre...(the purchaser)...should thereupon pay
down twenty per cent of the whole purchase money
and six pence sterling for every acre of which the
lots should consist for the expense of surveying
the same. ...(O)ver and above the twenty pounds
per cent of the whole purchase money he should pay
down ten pounds per cent of the whole purchase
money within one year from the date of such Bill
of Sale, ten pounds per cent more within the
second year after the date of such Bill of Sale
and twenty per cent within every successive year
until the whole was paid... (CO 101/1:75, in
Nardin 1969:296).



1 The others are Dominica, St. Vincent, Grenada and the
Grenadines.











Second, parliament limited the amount of land that

could be purchased by any individual, in order to limit the

influence of individual planters in the plantocratic lobby:

That no purchaser should be seized in his own name
or names of others in trust for him of more than
five hundred acres in the islands where the lands
lie, ...and if so seized of a greater number,
...that the purchase and grant of so many as
should exceed that number should be void and a
proportionable part of the money paid thereon
forfeited and the lands resumed and again exposed
to sale (CO 101/1:75, in Nardin 1969:296).

Parliament's goal was to guarantee steadily increasing

imports into the mother country without surrendering

additional political power to the planter class. The effect

was to impose twin constraints on Tobagonian planters:

potentially insufficient land coupled with a payment

schedule that could, perhaps, prove insurmountable (Ragatz

1963).


Land Sales

In all, seven land sales were held on the island (Table

4-1). The distribution of the acreage involved in these

sales says much about the perceptions the European colonists

had of the various parts of the island (Table 4-2). The

first lots sold were primarily in St. George's Parish (see

Figure 1-1). St. George's Parish was initially envisioned

as the most acceptable site for a capital town, to be called

Georgetown, by virtue of its proximity Barbados Bay. The

most attractive selling point for Barbados Bay as the











Table 4-1. Land sales on Tobago

Convening Date Acres Sold
19 May 1765 4000
12 May 1766 11,096
1767 14,975
1768 4632
9 April 1769 5183
5 June 1770 10,362
11 May 1771 8160
TOTAL 58,408
After Archibald 1987:107-123

location of Georgetown was its centrality relative to the

rest of the island.

Barbados Bay had the advantage of a central
situation and tendered equal facilities for resort
on business to the people of St. Mary's, St.
Paul's and St. John's (the northeastern portion of
the island),- or to St. Andrew's, St. Patrick's
and St. David's (the southwestern portion of the
island) (Young, in Archibald 1987:117).

In addition to its central location, the area of Barbados

Bay was thought by the original colonists to be less

conducive to the host of tropical diseases known to exist on

the island.

Despite the central location of Georgetown and Barbados

Bay, by the second land sale, buyer attention had shifted

primarily to St. David's Parish (although with the exception

of St. John's Parish land was sold throughout the island).

This shift is attributed to the move by James Simpson to

purchase Courland Estate, at either the first land sale or

early in 1766 (see Chapter 3, note 3, above). Simpson, as




















I I I I m m


40

0-
co


0

'-I


-4
0
0o
in


0 0 0 0 0 0
0 0 0 10 0 0O
0 in OD 0 O O





O N O O O O O OO
Sin in 0 M
D "r V (N CV i4 in %o

4-4












0 0 0 04 0 0 Cn
%0 V --4 (N in *

0%I<-4 1






(N C4 C4 (4 (N (N






0 o a I r in I- 0o 0
a l -I (N M (N
000


t I






Sl A A g
a Pc0 t30 a 1~ 0Pc 0E 0 t 4











the island's Chief Surveyor, possessed a degree of

familiarity with the island beyond that of the other

potential buyers. It appears that they recognized this

advantage, following his lead in this second round of land

sales (Archibald 1987:108).

By the third sale the buyers had further refined their

estimates of the relative merits of the various parishes.

In a trade-off that must have represented a difficult

business decision on the part of the planters, purchases

during the third sale were confined primarily to the nearly

flat parishes of St. Andrew's and St. Patrick's. The

planters were faced with two choices. On the one hand, St.

Andrew's and particularly St. Patrick's Parishes offer few

limitations to transport. Getting the crop from field to

factory, and later getting the finished products--muscovado

sugar, molasses and rum--from the factory to suitable points

for shipment to overseas markets was greatly facilitated in

the flatter parishes. On the other hand, the flat parishes

suffered from a decided lack of surface water. In general,

the streams and rivers of St. Patrick's and St. Andrew's

were too small and too gently sloped to operate water-

powered sugar mills. The lot choices of the third land sale

indicate that early Tobago planters opted for ease of

transport over the advantages of a water-based power supply.

This is a particularly telling point in that

... (o)n the computation of our most intelligent
planters, a 'water mill' adds to the value of the











Plantation one fifth, and one fifth more income
from the proceeds of the crop, never being at a
stand, or even retarded; from the Negroes never
being employed in cutting canes, which eventually
there may be no wind to grind, and the labours be
lost as well as canes, from canes being taken off
in their prime, and at the most seasonable and
convenient moment, with a certainty of immediate
manufacture, and generally from a saving of
produce, time, and labour (Young 1812c:78--
emphasis in original).

One consequence of the preference for land at the

southwestern end of the island was the virtual abandonment

of Georgetown. Although Plymouth was recognized as the best

alternative choice, Scarborough was established as Tobago's

capital city in 1767. According to Young (in Archibald

1987:115-117), the choice of Scarborough as the capital was

a poor one, based more on individual influence than on the

good of the colony as a whole.

The prepondering influence of the Surveyor
General, Mr. Simpson, then Speaker of the
Assembly, prevented the selection of Plymouth
Town; where (as he is reported to have said) I
that establishment of Government and trade would
occasion a concourse of people to disturb his
great plantation in the neighbourhood (ie.
Courland Estate); his slaves would all be
corrupted; the men in Tipplng Houses; and the
women by sailors! The interests of the rich
Leeward planters cooperating or temporizing with
Mr. Simpson, the measure of removing the Sessions
of Legislature from George Town, and the
transferring it to Scarboro; was carried by
personal influence and intrigue... (in Archibald
1987:116).

In the fourth land sale, buyers focused on St. John's

Parish. Since this area was far removed from the newly

established capital at Scarborough and from the preferred

locale of St. Patrick's and St. Andrew's Parishes at the









46

southwestern end of the island, it seems likely that other

factors accounted for this shift. By 1768, most of the

coastal lands in more proximate relation to Scarborough had

been claimed. Rather than choosing inland sites, where

overland transport was difficult, buyers selected coastal

lands where sea transport was possible. This pattern of

purchasing land in St. John's Parish continued through the

fifth round of land sales in 1769.

By the sixth land offering, in 1770, sales were more

broadly distributed, concentrating in St. David's, St.

Paul's, St. John's, and St. Mary's parishes. These may have

been the more inland sites. The seventh and final land sale

was held in 1771. Sales were concentrated in the eastern

three parishes of St. John's, St. Mary's and St. Paul's

parishes.

Table 4-3 documents the prices brought at the land

sales by Parish. Although a brief glance at the table

indicates that the most costly lands were located in St.

John's and St. Paul's parishes, this does not necessarily

reflect accurately the perceived value of lands. Rather,

the table reflects the fact that the later a lot was sold,

the better price it fetched. Table 4-4, showing costs per

acre on a year-by-year basis, confirms this observation.

Indeed, Young notes that:

...the price paid per acre (on a parish-by-parish
basis) are (sic) no criterion of comparative value
of the lands purchased. At commencement of the
adventure the country was little known, and the











Table 4-3. Per acre cost of land grants by parish

Parish Avg. cost per acre (-s)
St. George 2-0
St. David 2-16
St. Andrew 2-2
St. Patrick 1-5
St. Mary 2-19
St. Paul 3-12
St. John 3-12
After Young 1812c:81

Table 4-4. Per acre costs of land grants, 1765-1771

Year Avg. cost per acre (-s)
1765 1-0
1766 1-0
1767 1-10
1768 1-10
1769 2-15
1770 5-17
1771 4-14
After Young 1812c:81

bidders were cautious. In due course the soil was
further examined and better known, it was more
highly appreciated, and in the latter years a
competition raised the price of interior lands
(Young 1812c:81-82).

At the conclusion of the land sales, 57,408 acres had

been sold for plantations, at a total cost of 154,058

(Young 1812c:81). Archibald (1987:123) notes that this

represented 77 percent of all land on the island. When

combined with the 1520 acres reserved for poor settlers and

the 1000 acres reserved for crown usage, the resulting











59,928 acres (Table 4-5) account for nearly 81 percent of

the island's total acreage. The remaining acreage was to be

left in woods "for the preservation of the rains."

Table 4-5. Intended disposition of lands. 1765


Acres Acres Acres
granted reserved Total reserved
for for Poor acres for
Parish Estates Settlers granted Crown
St. Andrew's 3170 450 3620 200
St. George's 11,192 120 11,312 100
St. Mary's 10,447 100 10,547 100
St. Paul's 7558 100 7658 100
St. John's 10,520 450 10,970 200
St. David's 8720 100 8820 200
St. Patrick's 5801 200 6001 100
TOTAL 57,408 1520 58,928 1000


Young 1812b:38

While the Tobago land sales were highly successful,

putting the land into production was a different matter,

requiring substantial clearing operations in Tobago's

densely forested environment. While the data available on

land clearing are sparse, they indicate that clearing

occurred steadily, but unevenly, throughout the island.

Table 4-6 documents clearing operations from 1771 to 1775.

Table 4-7 breaks down clearing operations by parish for the

years 1775, 1786 and 1811. The latter table shows that the

amount of clearing in the rugged parishes at the eastern end

of the island lagged far behind that of the others. By

1786, St. Andrew's Parish could begin to realize its

productive potential while the eastern parishes continued to









49
lag behind. By 1811, St. Patrick's and St. David's parishes

were also nearly completely cleared.

Table 4-6. Cleared lands, 1771-1775

Year Acres cleared
1771 7042
1772 9601
1773 12,451
1774 15,060
1775 17,514
iAter Young 1812c:83

Table 4-7. Cleared lands by parish

Acres cleared
Parish 1775 1786 1811
St. Andrew 2338 2874 2910
St. George 4211 5837 6000
St. Mary 1906 3642 4218
St. Paul 1510 2595 4721
St. John 1320 2778 3570
St. David 2424 5106 8650
St. Patrick 2338 5083 5465
TOTAL 17,514 27,925 35,534
After Young 181a:99, 12c:89 and 92


The Tobago Economy

Tobago differed from all other ceded islands in that it

still remained undeveloped in 1763. Where the other islands

continued to produce the crops they previously had relied

on, Tobago became a sugar colony from the first (Ragatz

1963:40-41). The adoption of sugar cane as the major crop

was abetted by fiscal policies enacted by the British











government which, in the Mercantilist period, levied high

taxes on Caribbean products other than sugar and rum (Nardin

1969:227). In 1770 the first shipment of sugar left Tobago

for England (Archibald 1987:122),2 ushering in a period of

phenomenal growth for the island's sugar industry. The

maturation of this industry was so rapid that in 1799

Tobago, though a relatively small island, exported more

sugar (7,393 tons) than any other British Caribbean colony.

The number of sugar mills on the island during various years

gives a preliminary idea of the rapid development of the

sugar industry (Table 4-8).

Table 4-8. Sugar mills, 1771-1775
Year Water Animal Wind Total
1771 2 18 9 29
1772 3 22 9 34
1773 6 29 15 50
1775 9 52 23 84
lardin 1969:230

Sugar was not the only export of the colony during its

initial years, however. Anxious to meet payments on their

lands, needing to raise more capital, and believing that

even with higher taxes the returns would be adequate, at

least some Tobagonian planters cultivated crops that did not

require additional expenditures for processing equipment


2 Nardin (1969:228) points out that this is the first
official shipment by virtue of its transport directly to
England. He notes that a shipment left Tobago in 1769 as
well, but since it went to England via Barbados, it has not
been noted by other researchers.











(Nardin 1969:227-228). Although not in large quantities,

cotton was produced by 1773 (992 Ibs.),' indigo by 1774

(3273 lbs.), and coffee by 1775 (591 lbs.) (Young 1809:57,

1812a:83). In 1776, pimento, cinnamon, ginger, and cloves

were also produced (Lavaysse 1969 [1820]:348). These

supplementary crops would more than prove their worth during

subsequent years, when sugar production fell short of

expectations.


1763-1781

Table 4-9 documents increasing sugar exports from 1771

to 1780. It is apparent that development did not proceed at

a uniform pace.' During the early years of settlement,

several events, of both a natural and political nature,

impeded economic progress on the island. The first of these

occurred between the years 1776 and 1780 with an infestation

of "sugar ants." This natural plague coincided with the

American revolution, which also dampened trade (Young

1812c:90). Sugar ants were first noted in Grenada in 1770

(John Castles, in Edwards 1819 vol. 1:397). Early in 1776,



3 All weights are given in US units (ie. one pound
equals 16 ounces, one ton equals 2000 pounds).

A variety of production and export figures for sugar
are available in the literature. I have relied primarily on
Deerr's (1949:202) export figures because they are the most
extensive. Where Deerr does not present figures, I have
relied on alternative sources. The reader is cautioned,
however, to differentiate between production figures and
export figures.











Table 4-9. Sugar exports, 1770-1780
Year Sugar exports (tons)
1770 75
1771 198
1772 608
1773 632
1774 1,383
1775 1,551
1776 2,105
1777 614
1778 1,202
1779 696
1780 1,033
After Deerr 1949:202

however, swarms of them appeared on Tobago, first in St.

George's and St. Mary's parishes, but spreading rapidly to

all other parts of the island. The infestation ended

abruptly in 1780, for unknown reasons.5 By that time,

however:

The cultivation of other staples had superseded
that of sugar and the lands and buildings for
grinding the cane, and the boiling and granulation
of its juice could not be suddenly reapplied to
their ancient uses (Young 1812c:91).

During this period, and throughout the first 50 years

of settlement, Tobagonian planters tended to switch emphasis

from sugar to other crops during times of economic hardship.

By far the most important of these crops was cotton. While

only 42,548 lbs. were produced in 1775, two years later,


5 Castles believed that the ants on Grenada were wiped
out by the rains and winds associated with the hurricane of
1770. It may be coincidence, but in October of 1780, the
most violent storm of the 18th century effected Tobago
(Tannehill 1944:145, 240).









53

after the ants had largely destroyed the cane crop (Table 4-

9), a total of 1,693,800 lbs. of cotton were harvested

(Young 1812c:89, 96).' In 1780, Tobago cotton comprised

35.4 percent of all Caribbean cotton imported into Britain

(Nardin 1969:242). Cotton proved to be so successful on

Tobago that significant amounts were produced at least

through 1809 (Table 4-10).7 Cotton was not the only fall-

Table 4-10. Cotton exports, 1794-1809
Year Cotton Exports (lbs.)
1794 413,182
1795 297,409
1796 364,636
1797 66,955
1798 23,591
1799 7,227
1800 8,182
1801 28,182
1802 21,955
1803 24,000
1804 17,455
1805 32,182
1806 26,591
1807 25,500
1808 18,545
1809 31,227
After Woodcock 1966:appendix 1


Nardin (1969:233) disagrees with these figures,
perhaps because he was relying on a different data-base.
For the years 1774 through 1780 he gives cotton production
figures of 96,500, 258,031, 574,800, 731,100, 1,644,600,
1,846,200, and 1,845,600 lbs. respectively.

7 No records for cotton production are available after
1809, but it seems unlikely that production was halted after
that date.











back crop however. Records indicate that indigo, ginger,

dyewood and tumeric were also produced during this first

period of declining sugar production between 1776 and 1780

(Nardin 1969:242; Young 1809:62, 1812a:96). To these crops

can also probably be added coffee, pimento, cinnamon, and

ginger, discussed above.

In contrast to production and export figures, census

data show a steady increase in both the white and black

populations during the earliest years of settlement (Table

4-11). Table 4-12 shows the same data broken down by

Table 4-11. Island population, 1770-1780
Year White Population Black Population
1770 238 3164
June 1771 250 4926
Sept. 1771 284 5124
1772 339 5921
May 1773 416 7396
Oct. 1773 431 7861
1774 367 7694
1775 391 8675
1780 474 10,701
After Nardin 1969:140

parish, and indicates that, as with clearing operations, the

eastern parishes tended to lag behind the western ones in

terms of the number of slaves on the estates. In addition,

by 1773 the white population had already become concentrated

in the town of Scarborough (St. Andrew's Parish), while by

1780 Plymouth (St. Patrick's Parish) had a fairly large













= p- =4 %a r- r-4 =n =--
-4I (n r- ON '-4 4' C O
UI NI NI N 01 1- ,-4 N
n r- p r- o p. V -
CQ ( r o r-l r' i rM a r 4


1-4 C 4 '
0 0




I (. In N OI '- N

-4 I-I '-4 ri 0*I 0
Q
r-

o 0- Qu o OD o on '


O 4' r4 r- n N

CD 0% r -u 0% 0h %0


en i Qi 4' N
14o e0 Oq 4' CV) '0%

n rVi 0i 4' U % N 4 M 0
o n 0 0 in 0 '-0%O



--4 In wO ri q r- an i^
-4 4
- -- --
0< (n aD ol 0f1 o o oo
rl i ^u ^ r` u, r


Sn C D 01 1
{ n s s In WO C14 q' 1- 4 u

CD9- 4 w4'
mI Q w -n M -
OD N ( 0 4' 0o in '.4
1 o N W-4 O 'N

i00 1

0 en %ol t- I en a I r4 %D
.14 ( V4 o% 0 (n rn tN Cn

' fn 00

4.) '-i o (N 0 0 1'.


'- _-----_----------------
C4 :
Oi rc ^* ool c- o t w
rl4 4'r 0 N 0C 4'. '00


o 'o q) 4' 9-4 ti 'w '.4 in
CV) r.in %D C4 T-


w V.4 q qr (4
S in '-i 0 4' (N 4' 04'
~~g 03 4' M N I In (4


% N-- 1- in r- -4
0 M r < i f N r 4i
C4u




4) rj w_ w__ r.__ ____ w_
4 0 >4 40 9- in W
W 4 N (C 4 4) '-)0 i) U) -4 r- 0



M' @1 V) z to -- to --- --0 0
E-' I 1

(a .I ) 4JO 4J0 410 M~~ I0 .Ja O
Q)~ ~ .H = = -^ H =3 >
3 cu NI u r5 C ^ >^l Inl rll *P ^^
(B ( MiS wQ lOU tO^ S Mft Mt < '











white population as well. Trends become more apparent

through examination of Table 4-13, which shows that by 1780,

parity in population between parishes, including both white

and black inhabitants, was being approached.


1781-1793

The recovery of the sugar industry from the ant

infestation was dramatically slowed by the first of two

French occupations of the island. From 1781 to 1793

political control of the island was in the hands of the

French, although Tobago's population and culture remained

essentially British (Woodcock 1866:55-58). This was a

period of difficulty for the planters. With the French in

control, loans and other funds were not forthcoming from the

sources traditionally available to the British planters. As

a result, the repairs to the sugar works necessitated by the

forced shut-down during the ant infestation could not be

made (Young 1812c:93-95). During the French tenure, many

sugar works remained idle.

The planters' problems were further increased by the

occurrence of the French and Haitian revolutions during this

period. The French government had far too much on its hands

to worry about a small colony composed primarily of people

loyal to a foreign government. Its response was to leave

Tobago to its own devices. The first French occupation of

Tobago was characterized by a period of self-government and


















A *

0- -
$4 W dP dP dp dP dp dp dp
c!o o Go m r:





U-0 0 O 0 "n 1n 0 0
r- X n ON OD rn c Go





4 0)
cli,
^ C
aM






O e








S0 n %o 0 in0
1 "4 C4 *1 C4 *4 M








o C n '-4 9-4
*0g









0 %0 0 0% C% wh W
SSM











o









4)J

0 4 a 4


-Ch

0 V-4 __ "__ N_ g



4 -
10 oi












10 F-I ___ w r. >1 w











04 PC .0 *> *C .4 *
0 4r 0 Id 4)0 .0 4)0 rd .0
=- -- -- w- a -w -- -
-*nl '
i n "









58
self-protection (Young 1812c:95). At least once during this

period, near anarchy reigned. In 1791, in a demonstration

of support for the revolutionary movement in France, the

garrison at Fort King George (called Fort Castries by the

French) rioted. The soldiers burned the capitol town of

Scarborough (renamed Port Louis during the French tenure)

almost completely, leaving only the taverns "which the

drunkards had reserved, probably for their carousals" (Young

1812c:96).

The economy of Tobago suffered as a result of the

French disinterest. Not only was there a marked decline in

sugar production (Table 4-14), but production of all

supplementary crops decreased as well. Young (1812c:95,

101) notes that indigo exports dropped from 25,000 lbs. in

1780, the year before the French took the island, to 10,909

lbs. in 1786, to 3965 lbs. in 1788 and to 3636 Ibs. in 1789.

The decline of cotton was less pronounced (Table 4-14), and

it remained the principal export throughout the first French

occupation (Young 1812c:93-95), much of it probably being

Table 4-14. Sugar and cotton production, 1785-1789

Sugar Cotton
Year (tons) (Ibs)
1785 9,329 32,182
1786 9,158 26,599
1787 9,042 25,500
1788 7,844 18,545
1789 8,118 31,227


f: ter Young 1812a:2 6











exported to Britain (Ragatz 1963:200, 201). Table 4-15

shows the principal products grown on estates during this

period, while Table 4-16 shows land-use patterns. These

data indicate that while cotton production was spread

relatively evenly about the island, sugar was produced

primarily in St. Patrick's and St. David's Parishes.

Indigo, on the other hand, was produced almost entirely in

St. Paul's Parish, on a single estate.

Finally, the difficulties engendered by French rule

were compounded by a major hurricane which struck Tobago in

August of 1790 (Tannehill 1944:146-147). While the

destruction caused by this event is not well documented, it

did destroy 20 vessels and the estate house and sugar works

at Riseland Estate (Woodcock 1866:60-61). A more accurate

picture of the destruction is given by an elderly person to

whom Woodcock spoke in person some seventy years after the

fact. She described the 1790 event as being of the same

magnitude as the hurricane of 1847 (discussed below)

(Woodcock 1866:60).

Trends with positive economic consequences were

apparent during this period as well. In particular, there

was a decreased reliance on traction animals as sugar mill

power sources. Table 4-17 shows a significant decrease in

the number of cattle mills on the island when compared to

1775, while also showing an increase in wind and water

powered mills (see Table 4-8). Since there was also a

















0




*4
M
40





.1.
4J 0
C 0


O P










CO b


OD
r.
%0

t

O



















0
UC
*4












0









0
I1











E14
0
u



0'













+
MJ

*r


0'
* 0








4)1
W 0





a
4)
P e,


N~~I


r I I


'-4 I


fn -1 -4


I "1 0O


13"^^^^^"7


w r m W1 m 1m C4 "
-n t- o-- o -





w oooooo oo va
nm menn
E- wr 0%4





.4
4:0




r tn o r-







to I r4 t)
* (N nm
Srl P4












tozI I
P o










r- 0m






<0 0P r 0
4 %a Nr- %0



a4







0 O ,-OjW )
O Oor-O O









w r 0 rq :3 o
%4 UU I N O 41 0








O m) e** U U 0

0 0 0 0 4 0 4 f 04
r H I U1 I U 14N 4 E-4




- --- --- B- =
rt lO M U U & OK ^
I1 1 1 1 1 1 = = =


ln "I-











~inanr udlla 17RC


Aier Young lo82c:y

significant decrease in the total number of mills, it seems

probable that estates relying on wind or water powered mills

were more likely to remain in production.

Population figures for 1786 show that many of the

trends noted for the preceding period (1763-1781) continued

(Tables 4-18 and 4-19). By this time the ratio of whites to

slaves had become even further skewed in favor of the

slaves, indicating the full maturation of Tobago as a

plantation society.8 These figures also give the first

intimation of a developing free colored population. As one


a Table 4-18 also shows a decline in the number of
whites on the island when compared to the 1780 figure (Table
4-12). This may indicate the concentration of acreage into
fewer hands.


Parish Water Animal Wind TOTAL
St.
George 4 4 0 8
St.
Mary 0 1 1 2
St.
Paul 5 2 0 7
St.
John 0 2 1 3
St.
Patrick 0 9 15 24
St.
David 1 5 6 12
St.
Andrew 0 3 7 10
TOTAL 10 26 30 66


"
able 4-17











Table 4-18. Island population by parish, 1786

Parish Whites Free Colored Slaves
St.
George 51 21 1950
St.
Mary 21 9 1135
St.
Paul 30 9 1151
St.
John 40 14 1297
St.
Patrick 50 9 2662
St.
David 71 16 2434
St.
Andrew 141 72 2049
TOTAL 437 149 11,638
ATter Young 1812c:92

Table 4-19. Population densities and ratio, 1786

Ratio of
Density per Density per whites to
Parish km2 (Whites) km2 (Slaves) slaves
St.
George 1.1 43 38.2
St.
Mary 0.5 28 54.0
St.
Paul 1.0 37 38.4
St.
John 0.9 31 32.4
St.
Patrick 2.2 116 53.2
St.
David 2.0 69 34.3
St.
Andrew 10.8 158 14.5
r 1 1


x ter Young 8 2c:92











would expect, they were primarily concentrated in

Scarborough. Few chose to locate in Plymouth, indicating

its decreasing importance as a significant economic base of

operations.


1794-1800

In April of 1793 Tobago was retaken by the British by

force of arms. Sugar soon returned to its pre-eminent

position as the staple export (Table 4-20).' At the same

time, cotton exports drastically declined, and cotton

production was nearly phased out by 1800. Given the success

that Tobagonian planters had with cotton, and the high

esteem with which it was held by the proprietors of

Manchester's cotton mills (Lavaysse, in Nardin 1969:234), it

is difficult to understand why cotton was so readily and

rapidly abandoned. The major contributing factor was the

increasing availability of cotton from other sources,

particularly the United States, which paid significantly

lower duties on cotton at the close of the eighteenth

century than did competing British Caribbean colonies

(Carrington 1987:159; Ragatz 1963:370-371). In addition,

cotton and sugar were harvested in the same months. Thus,

competing timetables made them mutually exclusive (Turnbull,

in Nardin 1969:235).


9 No data is available for the years between 1789 and
1794.











Table 4-20. Volume of exports, 1794-1800

Sugar Cotton
Year (tons) (Ibs.)
1794 4,733 413,181
1795 3,465 297,409
1796 4,358 364,636
1797 4,429 66,954
1798 5,787 23,590
1799 7,939 7,227
1800 5,983 8,181
After Deerr 1949:202; Woodcock 1866:appendix 1

From 1794 to 1801, Tobago's sugar exports rose from

4,733 tons to 6,626 tons. These were the golden years of

the Tobago plantation era, for it was during this period

that the island reached its highest sugar output. Much of

the success of the Tobagonian planters can be attributed to

the near total destruction of the Haitian economy during the

revolution there. "The sudden withdrawal of (Haiti's)

immense supplies of tropical produce from the general

European market occasioned widespread scarcity; continental

buyers hastily turned across the English Channel to fill

their needs" (Ragatz 1963:205). As a result, the price

fetched by sugar in the British market rose rapidly. From

1795 until the end of the century, the price of sugar on the

British market never fell below 50s. per cwt exclusive of

duties (Ragatz 1963:205). Table 4-21 gives an idea of the

















w


44
0


4I

0



V
0%






.8-4

0%
0%

0
I









14

4Id
to
4)





T


0

to
C4





E-4
.1I

0

SO




Ur.
H
0

0,
*N
'-I




0)


10 000

0 9-4 CD 0 C


S
IN InI I I
t t

















I I
Go CID C'D(% %





US I I P oI Io


514

U




.I
U 4 1 r -1 q q

























-8 u-I ifl 00
en N 131314
I4 I












01 0 0 0
4J
0
z





41















00% 0%0 S1
w ON N N0 0
=



01.


04
x


at

%0 f- OD

>4 -4 V-4 V-


U





0,-4

C4

V14
I-I


u
ri







~OD
V4-
N N.

a

u


004-)t

4-1F:











kinds of profits achievable by Tobagonian sugar planters

during this period.10


10 Even during times of peak sugar production cotton
was never completely abandoned (see Table 4-10). Despite
documentary emphasis on sugar production, Tobago cannot be
characterized by monocropping.














CHAPTER 5
DECLINING FORTUNES


Throughout the first decade of the nineteenth century

sugar prices tumbled. Several factors combined to drive the

price of sugar down until, by 1807, the per unit cost of

production was greater than the market price (Ragatz 1963).

The foremost cause was renewed access to non-British markets

by non-British producers. In the last decade of the

eighteenth century, the British colonies were the primary

suppliers of tropical products to all of Europe. Sugar and

other products were exported to Britain from the Caribbean,

and then re-exported to the continent to meet foreign

demand. As a result, prices for sugar were artificially

high. By the early nineteenth century, foreign production

was again reaching the continental market. The increased

competition caused declining sugar prices. The situation

was further exacerbated by increased production. In short,

what had been a sellers' market rapidly changed into a

buyers' market, hurting planters across the board. Table 5-

1 shows the effect of this decline on the Tobagonian

planters by 1805 (compare with Table 4-21). Of particular

note, the net profit derived from one hogshead of sugar

dropped from a high of 31.17 in 1796 to a low of 1.19 in












,C m -
.9
4J

0 0 0 0 o
C o0 I I
I 0




II I
:.1 I L 6 o
t 4-) V-4 C4 %c
'O


1O
O )






o
m 0






C > 1I I I
*U 0 u V 0 0
4U

Ia
















5 4Y)

-.'1 IOl l 4-
0







IU
la 0 co -








0 ------ -
00 0
go r
" 04









V4 -- -- -
0 g


1 441







r-4 4

C = =



(D 0 0 00 > D

E-4I









69

1806, a staggering 96 percent decline. By 1807, only 30,537

acres remained in sugar cane on Tobago (Young, in Ragatz

1963:308).

From 1807 onwards, there was a continual struggle on

the part of Tobagonian planters to save their way of life.

Under constant pressure from declining prices, they suffered

a gradual reversal of their fortunes. The island went from

being a jewel in the crown of England to being a colonial

backwater contributing little to the British economy. The

primary events affecting Tobago during this period were the

abolition of the slave trade in 1807, the advent of

apprenticeship in 1834, the emancipation of the slaves in

1838, and the passage of the Encumbered Estates Act of 1854.

Table 5-2 shows the estates in cultivation throughout Tobago

for the years 1811, 1824, 1832, and 1862.

Table 5-2. Sugar estates in cultivation for various years
In cultivation:

Estate Parish 1811 1824 1832 1862
Adelphi St. George's XX XX XX
Adventure St. David's XX XX XX XX
Amity Hope St. David's XX XX XX
Argyle St. Paul's XX XX XX
Arnos Vale St. David's XX XX XX XX
Auchenskeoch St. Andrew's XX XX XX XX
Bacolet St. George's XX XX XX XX
Belle Garden St. Paul's XX XX XX XX
Belmont St. George's XX XX XX XX
Betsey's Hope St. Paul's XX XX XX XX
Bon Accord St. Patrick's XX XX XX XX









Table 5-2 (cntd.).


In cultivation:

Estate Parish 1811 1824 1832 1862
Buccoo St. Patrick's XX XX XX XX
Burleigh Castle St. Andrew's XX XX XX XX
Calder Hall St. Andrew's XX XX XX XX
Campbellton St. John's XX
Cardiff St. Mary's XX
Carnbee St. Andrew's XX XX XX XX
Castara St. John's XX XX XX XX
Cinnamon Hill St. George's XX XX
Charlotteville St. John's XX XX XX XX
Concordia St. George's XX XX XX XX
Courland St. David's XX XX XX XX
Cove St. Patrick's XX XX
Cradley St. George's XX XX XX XX
Craig Hall St. David's XX XX XX XX
Cromstane St. Patrick's XX
Culloden St. David's XX XX XX XX
Delaford St. Paul's XX XX
Dunvegan St. David's XX XX XX XX
Franklyns St. David's XX XX XX XX
Friendsfield St. George's XX XX XX XX
Friendship St. George's XX
Friendship St. Patrick's XX XX XX
Glamorgan St. Mary's XX XX XX XX
Golden Grove St. Patrick's XX XX XX
Golden Lane St. David's XX XX XX XX
Goldsborough St. Mary's XX XX XX XX
Goodwood St. Mary's XX
Grafton St. Patrick's XX XX XX XX
Grange St. Patrick's XX XX XX XX
Greenhill St. George's XX XX XX XX
Hampden St. Andrew's XX XX XX









Table 5-2 (cntd.).


In cultivation:

Estate Parish 1811 1824 1832 1862
Hermitage St. John's XX XX XX XX
Highlands St. David's XX XX XX
Hope St. George's XX XX XX XX
Indian Walk St. David's XX XX XX XX
Invera St. Paul's XX XX XX
Inverarden St. Mary's XX
Kendal Place St. Paul's XX XX XX XX
Kilgwyn St. Patrick's XX XX XX XX
King's Bay St. Paul's XX XX XX XX
Lambeau St. Andrew's XX XX XX XX
Les Coteaux St. David's XX XX XX XX
Lower Quarter St. David's XX XX XX XX
Lowlands St. Andrew's XX XX XX XX
Lucy Vale St. John's XX XX
Lure St. Mary's XX XX XX XX
Mary's Hill St. David's XX XX XX XX
Merchiston St. Paul's XX XX XX
Montpelier St. Andrew's XX XX XX XX
Mt. Dillon St. David's XX XX XX XX
Mt. Irvine St. Patrick's XX XX XX XX
Mt. St. George St. George's XX XX XX XX
New Grange St. Patrick's XX XX XX XX
Nutmeg Grove St. George's XX XX XX XX
Orange Hill St. David's XX XX XX
Orange Valley St. Patrick's XX XX XX
Pembroke St. Mary's XX XX XX XX
Prospect St. Patrick's XX XX XX XX
Providence St. David's XX XX XX XX
Richmond St. Mary's XX XX XX
Riseland St. Andrew's XX XX XX XX
Roxborough St. Paul's XX XX XX XX









Table 5-2 (cntd.).


1812a:71-95.


1800-1807

Declining revenues and the abolition movement

affected planters throughout the British Caribbean. Though

this is not reflected in the production or export figures,

as business men the Tobagonian planters would have been

keenly aware that sugar prices were dropping, that their

political power in Britain was in decline and that their

labor force might be removed from their control in the

future. Following so quickly on the heels of the boom years

of the 1790s, it is unlikely that these realizations did

more than create a background of stress in the minds of the


In cultivation:
Estate Parish 1811 1824 1832 1862
Runnemede St. David's XX XX XX
Shervan St. Patrick's XX XX XX XX
Sherwood Park St. Andrew's XX XX XX XX
Smithfield Unknown XX
Speyside St. John's XX XX XX XX
Spring Garden St. Andrew's XX XX
Studley Park St. George's XX XX XX XX
Telescope St. John's XX XX XX
Trois Rivieres St. John's XX
Unity St. Mary's XX XX XX
Whim St. David's XX XX XX
Woodlands St. David's XX XX XX
TOTAL 80 70 74 65
After Ottley 1950:142-144; Woodcock 18 6:app You


ng


1812a 71-95.











planters, particularly given the other events occurring on

Tobago.

The Tobago slaves may have perceived the trend towards

abolition and eventual emancipation as well. In 1801 they

planned an insurrection, the first on the island since the

very earliest years of settlement. Set for Christmas eve,

the plan was to set fire to canes near each estate house.

When the planters came to fight the fires they were to be

put to death along with the slaves who remained loyal to

them. In short, the system of slavery on Tobago was to be

overthrown and replaced by an Afro-tobagonian government

(Woodcock 1866:72-73).'

Fortunately for the Tobago planters, and unfortunately

for their slaves, the 1801 insurrection was discovered

before it had even begun. Thirty ringleaders were caught,

incarcerated and sentenced to death. At the order of

General Carmichael, commander of the Tobago military

garrison, only one slave was actually hung, however. To

give the impression of a thorough reprisal, his body was

hoisted up the flag staff at Fort King George 30 times, with



As discussed earlier (Chapter 4) three revolts
occurred in 1770 and 1771. While it is likely that others
were planned during the intervening years, apparently none
went beyond the planning stages or came to the attention of
the authorities. Genovese (1979:3) has argued that early
revolts were "restorationist"--designed to secure freedom
from slavery for the participants. Later revolts are
characterize as revolutionary attempts to overthrow the
system of slavery (see also Gaspar 1985:255-258). The 1801
revolt on Tobago certainly falls into this latter category.











a signal gun at each hoist. Believing that all of their

leaders were dead, the revolutionary tendencies of the mass

of slaves were shattered.2

In 1802, by the Treaty of Amiens, Tobago again reverted

to French control, only to be recaptured by the British in

1803 (Ottley 1950:49). From a cultural perspective, little

significance can be attached to this event as it was of such

short duration. In addition, during the French tenure,

British law and the rights of Tobagonians accorded by that

law were maintained. The Tobago legislature was so grateful

that it voted a bonus of 4000 to the French-appointed

governor above and beyond his 3300 salary, the same salary

as that afforded to British governors (Woodcock 1866:54).

The same cannot be said of the economic circumstances

of the Tobagonian planters during and immediately following

the French occupation. Several factors contributed to a

declining economy. First, with the advent of French rule,

exports to Britain, or to any other country but France, were

immediately banned by the new government (Ottley 1950:49).

Table 5-3 shows a sharp decline in sugar exports in 1803,

reflecting the consequences of this ban. Although exports

rose back to their customary level after the British



2 Carmichael's move was interpreted as magnanimous at
the time and has been cited as an example of the generally
good relations which existed between blacks and whites on
Tobago (Woodcock 1866). A more cynical interpreter might
wonder what became of the revenues from the selling off-
island of 29 slaves.











Table 5-3. Sugar exports, 1800-1809

Sugar
Year (tons)
1800 5,983
1801 6,626
1802 7,724
1803 4,706
1804 6,394
1805 7,680
1806 7,412
1807 6,046
1808 6,278
1809 6,456
After Deerr 1949:202

recapture of Tobago, uncertainty about the future status of

the island prompted the passage of "the Limitation Act" by

the British parliament in 1805, limiting economic aid to all

West Indian islands ceded to the French by the Treaty of

Amiens. This hardly reassured the Tobagonian planters and

had the added detrimental effect of "induc[ing] creditors to

sue and mortgagers to foreclose" (Young 1812c:119). As a

result, there was an exodus of planters from the island

(Young 1812c:121), and a brief upsurge of cotton production,

which nearly doubled from 17,454 lbs. in 1804 to 32,182 lbs.

in 1805 (Woodcock 1866:appendix 1).



Abolition and Amelioration

In 1807, the British parliament enacted the Abolition

Act, making the importation of African slaves into the











colonies illegal. This was a devastating blow to Tobago's

planter class. Up until abolition, planters had been

guaranteed a constant supply of labor in the form of steady

slave importation. In the labor intensive environment of a

sugar plantation, slaves were thought to be a necessity.

Their work was arduous and because of the nature of cane

cultivation and sugar production, for much of the year

nearly constant. This took a heavy toll on the labor force,

to such an extent that most plantation slave populations in

the Caribbean were non-reproducing. That is to say, the

death-rate exceeded the birth-rate, so that the slave

population could not be maintained without importation of

fresh slaves from a foreign source. The planters problems

were aggravated by the War of 1812 which brought about a

decline in access to foreign produced provisions (Ragatz

1963:343-344). While this affected the food supply of the

entire population of Tobago, the slaves were by far the

hardest hit.

In response to the abolition of the slave trade, and to

some extent preempting the adverse effect of the war, the

Tobagonian planters took steps to increase the general

health, and thus the birth-rate, of their slaves. From a

sugar production perspective, perhaps the most significant

of these steps was the initiation of an Agricultural Society

in 1807 to increase self-sufficiency and slave nutrition.

Although the society was short-lived, by 1808 triple the











acreage on estates was given over to provisions (Young

1812a:no page number, and in Ragatz 1963:325). As a result,

sugar production declined from 9,741 tons in 1807 (Young

1809:98) to 7,602 tons in 1811 (Young 1812a:99).

Table 5-4 shows that the planter's ameliorative efforts

had little beneficial effect on the slave population. In

four years, despite the efforts of the planters, the overall

decrease in the slave population was 362. In only one

parish, St. Patrick's, was there an increase, and only of

three slaves. One cause of the decrease is apparent through

examination of the Special Returns of 1811 (Table 5-4)--in

all parishes, except St. Patrick's, males outnumber females.

By 1824 the decrease brought about by abolition was even

more marked. Census data given by Ottley for that year

(1950:142-144) show only 10,632 slaves on Tobago's estates,

a decrease of nearly 17 percent since 1811.

A particularly bad year for Tobagonian planters

occurred in 1827, when only 2,739 tons of sugar were

exported (Table 5-5). None of the various histories of the

island account for such a miserable year. A similar

decline, though of a lesser magnitude, occurred on many

other Caribbean islands (Deerr 1949). On most, it can be

accounted for by crop destruction accompanying a major

hurricane that affected all of the Leeward Island group

(Ragatz 1963:375; Tannehill 1944:150-151).
















= ; = ; I = P =


* --- -

C T 0 0 4 EI 0 0
S* InO O O e O v-r m





'F I mi M N (4 I P
a ri rt a M r


I 0
ra *


m
In


Sr4 l w I- I4 e % 0 p
mO 5 ri In IA 0
14OD in io




l r4 In





r -W- r- I C4 m m
vi m0 0% In 4 0 0 V4 M




-I 0
*g w (l C -I ul w c I n i
cc vi -l o fn M m




(21 an r-I

14 4 r 1 rl 4l



I ,( ft fI ntI


^ -- ------------- -^ -_ -_ -_ ___
*3
Id


u, ~ ~ a
I *
O a
*- d b .


.4 H* 6 *k -4 -4 O*

- ------ -_---


Of
0 Mn


rl f *











Table 5-5. Sugar exports from Tobago, 1814-1869, 1872-1888
and 1890-1891
Year Sugar (tons)
1814 5,383
1815 5,397
1816 6,213
1817 6,179
1818 5,042
1819 5,911
1820 5,321
1821 4,833
1822 5,390
1823 5,045
1824 5,530
1825 4,971
1826 5,384
1827 2,739
1828 5,471
1829 4,047
1830 4,173
1831 5,413
1832 4,827
1833 3,863
1834 3,528
1835 3,450
1836 5,253
1837 4,054
1838 3,198
1839 4,144
1840 2,301
1841 2,150
1842 2,094
1843 2,046
1844 2,201
1845 2,844
1846 1,733









Figure 5-5 (cntd.).


Year Sugar (tons)
1847 3,538
1848 2,388
1849 2,290
1850 1,978
1851 2,283
1852 3,052
1853 2,587
1854 1,983
1855 1,756
1856 2,616
1857 1,525
1858 3,031
1859 2,634
1860 2,299
1861 2,471
1862 3,228
1863 2,122
1864 1,981
1865 2,353
1866 4,035
1867 3,192
1868 2,084
1869 2,641
1872 3,468
1873 3,630
1874 3,882
1875 4,603
1876 3,394
1877 2,924
1878 2,832
1879 2,896
1880 2,970
1881 3,240
1882 2,249
1883 2,270




Full Text

PAGE 1

/$1'6&$3(6 $1' 3/$17$7,216 21 72%$*2 $ 5(*,21$/ 3(563(&7,9( %< &+5,6723+(5 2+0 &/(0(17 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( 6&+22/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 2

&RS\ULJKW E\ &KULVWRSKHU 2KP &OHPHQW

PAGE 3

$ SHRSOH ZLWKRXW D NQRZOHGJH RI WKHLU SDVW KLVWRU\ RULJLQ DQG FXOWXUH LV OLNH D WUHH ZLWKRXW URRWV 0DUFXV *DUYH\

PAGE 4

$&.12:/( '*(0(176 $Q\ UHVHDUFK SURMHFW LV D FRRSHUDWLYH HIIRUW LQYROYLQJ QRW RQO\ WKH UHVHDUFKHU EXW D KRVW RI RWKHUV 3HWHU 5 6FKPLGW VHUYHG DV P\ FRPPLWWHH FKDLU +H UHLQHG PH LQ ZKHQ JRW RYHUO\ HQWKXVLDVWLF DQG SURYLGHG D VRXQGLQJ ERDUG IRU P\ LGHDV 3HWHUnV SULQFLSDO FRQWULEXWLRQ KRZHYHU ZDV KLV IDLWK WKDW ZRXOG GR P\ SDUW SURIHVVLRQDOO\ ,Q DGGLWLRQ KLV NQRZOHGJH RI $IULFDQ FXOWXUHV ERWK SDVW DQG SUHVHQW PDGH PH DZDUH RI SRWHQWLDO DYHQXHV IRU XQGHUVWDQGLQJ VODYH OLIH RQ 7REDJR KDYH EHHQ SULYLOHJHG WR EH DVVRFLDWHG ZLWK 0LFKDHO ( 0RVHOH\ VLQFH ZKHQ KH UHVFXHG PH IURP JUDGXDWH DSDWK\ E\ DJUHHLQJ WR RYHUVHH P\ PDVWHUnV UHVHDUFK 0LNH UHPDLQV RQ P\ FRPPLWWHH DQG KDV FRQWLQXHG WR EH ERWK D PHQWRU DQG IULHQG GXULQJ WKH FRXUVH RI WKLV GLVVHUWDWLRQ 7KRXJK DP QR ORQJHU GLUHFWO\ DVVRFLDWHG ZLWK KLV 3HUXYLDQ UHVHDUFK WKH GLUHFWLRQ KDYH WDNHQ RQ 7REDJR LV ODUJHO\ D UHVXOW RI 0LNHnV LQIOXHQFH ,Q DGGLWLRQ WKH WHFKQLFDO DQG DQDO\WLFDO VNLOOV QHHGHG WR FRPSOHWH WKH 6W 'DYLGnV $UFKDHRORJLFDO 6XUYH\ ZHUH EXLOW RQ VNLOOV GHYHORSHG XQGHU KLV GLUHFWLRQ .DWKOHHQ $ 'HDJDQ DQG :LOOLDP ) .HHJDQ DUH WKH UHPDLQLQJ WZR DQWKURSRORJLVWV RQ P\ FRPPLWWHH %HWZHHQ WKH WZR RI WKHP KDG DFFHVV WR D JUHDW GHDO RI NQRZOHGJH DERXW LY

PAGE 5

&DULEEHDQ KLVWRU\ DQG SUHKLVWRU\ ,Q DGGLWLRQ .DWK\nV FRPPLWPHQW WR WKH DUFKDHRORJLFDO UHFRUG DQG KHU LQVLVWHQFH WKDW H[FDYDWLRQ VKRXOG RQO\ EH XQGHUWDNHQ LQ WKH DEVHQFH RI RWKHU GDWD VRXUFHV OHG WR D ODUJHO\ VXUYH\ PHWKRGRORJ\ ZKLOH %LOOnV SRVLWLYLVW HSLVWHPRORJ\ ZLWKLQ DQ HFRQRPLF IUDPHZRUN FRQWULEXWHG D JUHDW GHDO WR WKH WKHRUHWLFDO XQGHUSLQQLQJV RI P\ UHVHDUFK 7KH ILQDO PHPEHU RI P\ FRPPLWWHH 5DOSK % -RKQVRQ SURYLGHG D QRQDQWKURSRORJLFDO YLHZSRLQW HQFRXUDJLQJ PH WR SUHVHQW P\ UHVHDUFK LQ D ZD\ WKDW FRXOG EH XQGHUVWRRG E\ D OHVV VSHFLDOL]HG DXGLHQFH 7KRPDV +DOHV (XEDQNV DORQJ ZLWK 0LNH 0RVHOH\ LV WKH FRGLUHFWRU RI WKH 7REDJR $UFKDHRORJLFDO 3URJUDP +H GHYHORSHG PXFK RI WKH LQIUDVWUXFWXUDO VXSSRUW DQG FRQWDFWV RQ 7REDJR WKDW ODWHU WDSSHG LQWR DQG KDV EHHQ PRVW UHVSRQVLEOH IRU WKH FRQWLQXLQJ DELOLW\ RI 3URJUDP UHVHDUFKHUV WR ZRUN RQ 7REDJR 0\ UHVHDUFK ZRXOG QRW KDYH EHHQ SRVVLEOH ZLWKRXW WKH JURXQGZRUN WKDW KH ODLG ,Q DGGLWLRQ KH WUDYHOOHG WR 7REDJR RQ VHYHUDO RFFDVLRQV WR YLVLW PH LQ WKH ILHOG +LV WLPHO\ DUULYDOV DW FULWLFDO MXQFWXUHV RI WKH ILHOGZRUN SURYLGHG ERWK PRUDO VXSSRUW DQG LQYDOXDEOH H[SHUWLVH $ERYH DOO KRZHYHU 7RP LQWURGXFHG PH WR 7REDJR 'DYLG / 1LGGULH WKRXJK KH GLG QRW NQRZ PH VSHQW VHYHUDO KRXUV GLVFXVVLQJ P\ UHVHDUFK DQG ZHQW VR IDU DV WR OHQG PH KLV ILHOG QRWHV IURP UHVHDUFK KH XQGHUWRRN RQ 7REDJR Y

PAGE 6

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

PAGE 7

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

PAGE 8

'DYLG 3KLOOLSV VKDUHG KLV H[WHQVLYH NQRZOHGJH RI ORFDO KLVWRU\ DQG KLV YDOXDEOH FROOHFWLRQ RI KLVWRULF PDSV DQG GRFXPHQWV +LV OLEUDU\ RQ JHQHUDO &DULEEHDQ KLVWRU\ LV XQHTXDOOHG RQ WKH LVODQG DQG SURYLGHG PH ZLWK UHIHUHQFH PDWHULDOV GXULQJ P\ VWD\ RQ WKH LVODQG /HR &RRSHU 5LFKDUG *UDQW &ODUHQFH 7KRPDV 0UV 4XDVKLH /OR\G -RVHSK 0U 6SHQFH $UFKLH +DOLID[ DQG &RQUDG 3ULFH VHUYHG DV ORFDO LQIRUPDQWV DQVZHULQJ P\ TXHVWLRQV DQG VKRZLQJ PHf§RU JLYLQJ PH GLUHFWLRQV WRf§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
PAGE 9

$QWKURSRORJ\ 'HSDUWPHQW VR WKDW ZRXOG KDYH D SODFH WR ZULWH ZKLOH KLV FROOHDJXHV $QQ %ULWWDLQ 5REHUW +DOEHUVWHLQ (GZDUG /L3XPD DQG /LQGD 7D\ORU KDYH DOO SURYLGHG PRUDO VXSSRUW DQG RFFDVLRQDO JXLGDQFH 1DWDVKD (OPVOLH KDG DQ XQIDLOLQJO\ V\PSDWKHWLF HDU DQG FKHHUIXO ZRUGV RI HQFRXUDJHPHQW 7KH 'HSDUWPHQWV RI $UFKLWHFWXUDO (QJLQHHULQJ DQG *HRJUDSK\ 8QLYHUVLW\ RI 0LDPL DOORZHG PH WR XVH WKHLU FRPSXWHUV WR SURGXFH WKH JUDSKLFV LQFOXGHG LQ WKLV GLVVHUWDWLRQ DV GLG WKH 8QLYHUVLW\ RI )ORULGD 'HSDUWPHQW RI 6XUYH\LQJ DQG 0DSSLQJ DQG WKH 8QLYHUVLW\ RI 6RXWK &DUROLQD 'HSDUWPHQW RI &LYLO (QJLQHHULQJ :KLOH PDQ\ IHOORZ VWXGHQWV DW WKH 8QLYHUVLW\ RI )ORULGD ZHUH LPSRUWDQW LQ P\ JUDGXDWH FDUHHU RQO\ IRXU ZLOO EH PHQWLRQHG KHUH 'LHJR +D\ UHDG P\ ILUVW GUDIW DQG KHOSHG PH EHWWHU XQGHUVWDQG WKH HFRQRPLF KLVWRU\ RI WKH &DULEEHDQ *UHJ 6PLWKn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

PAGE 10

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

PAGE 11

35()$&( 7KH JRYHUQPHQW RI WKH &DULEEHDQ LVODQG RI 7REDJR KDV UHFHQWO\ HPEDUNHG RQ DQ DPELWLRXV SODQ WR GHYHORS WKH LVODQG IRU WRXULVP ,Q GRLQJ VR WKH\ HQWHU LQWR GLUHFW FRPSHWLWLRQ ZLWK PRUH HVWDEOLVKHG &DULEEHDQ GHVWLQDWLRQV $OWKRXJK WKH SUHVHQW GHYHORSPHQW SODQ IRFXVHV SULPDULO\ RQ WKH VXQ DQG IXQ YDFDWLRQHUV WKDW W\SLI\ &DULEEHDQ WRXULVP WKH JRYHUQPHQW UHFRJQL]HV WKDW GXH WR WKH UHODWLYHO\ XQGHYHORSHG VWDWXV RI WKH LVODQG WKH QDWXUDO HQYLURQPHQW RIIHUV DQ DGGLWLRQDO VHOOLQJ SRLQW 7KH XQGHUGHYHORSPHQW RI 7REDJR KDV UHVXOWHG LQ WKH SUHVHUYDWLRQ RI D EURDG YDULHW\ RI DUFKDHRORJLFDO VLWHV RQ WKH LVODQG 0RVW KDYH \HW WR EH V\VWHPDWLFDOO\ H[SORUHG ,Q UHFRJQLWLRQ RI WKH SRWHQWLDO YDOXH WKHVH FXOWXUDO UHVRXUFHV KDYH IRU WRXULVP GHYHORSPHQW WKH 7REDJR $UFKDHRORJLFDO 3URJUDP D MRLQW HIIRUW RI WKH 7REDJR +RXVH RI $VVHPEO\ DQG WKH 8QLYHUVLW\ RI )ORULGD ,QVWLWXWH RI $UFKDHRORJ\ DQG 3DOHRHQYLURQPHQWDO 6WXGLHV ZDV LQLWLDWHG WR FRQGXFW DUFKDHRORJLFDO UHVHDUFK RQ 7REDJR LQ 7KH IRFXV RI WKH 7REDJR $UFKDHRORJLFDO 3URJUDP WR GDWH KDV EHHQ RQ WKH UHPDLQV RI WKH PDQ\ VXJDU HVWDWHV RQ WKH LVODQG 7KH VXUYH\ UHVXOWV UHSRUWHG KHUH FRQWLQXH WKDW HIIRUW )XWXUH [L

PAGE 12

UHVHDUFK ZLOO IRFXV RQ DGGLWLRQDO VLWH W\SHV ERWK SUHKLVWRULF DQG KLVWRULF 6XJDU HVWDWHV KDYH EHHQ WKH IRFXV RI WKH 7REDJR $UFKDHRORJLFDO UHVHDUFK SURJUDP EHFDXVH WKH\ DUH WKH PRVW YLVLEOH H[WDQW PDWHULDO HYLGHQFH RI 7REDJRn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

PAGE 13

7$%/( 2) &217(176 $&.12:/('*(0(176 LY 35()$&( [L /,67 2) 7$%/(6 [YL /,67 2) ),*85(6 [YLLL $%675$&7 [L[ &+$37(5 7+( 6$,17 '$9,'n6 3$5,6+ $5&+$(2/2*,&$/ 6859(< 5HVHDUFK *RDOV DQG 6LJQLILFDQFH 0HWKRGV 2UJDQL]DWLRQ &+$37(5 3+<6,&$/ $63(&76 2) 72%$*2 3K\VLFDO 'HVFULSWLRQ *HRPRUSKRORJ\ 7RSRJUDSK\ DQG +\GURORJ\ &OLPDWLF &RQGLWLRQV (SLGHPLRORJ\ 0RGHUQ 6HWWOHPHQW &+$37(5 )$&7256 ())(&7,1* ($5/< &2/21,=$7,21 ())2576 (DUO\ +LVWRU\ 6XJDU 6ODYHU\ 7KH 6HWWOHPHQW RI 7REDJR ,QLWLDO 6HWWOHPHQW &+$37(5 68&&(66)8/ &2/21,=$7,21 ,QWURGXFWLRQ /DQG 6DOHV 7KH 7REDJR (FRQRP\ [LLL

PAGE 14

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nV (VWDWH *ROGHQ /DQH (VWDWH +LJKODQGV (VWDWH ,QGLDQ :DON (VWDWH .LQJ 3HWHUnV (VWDWH /HV &RWHDX[ (VWDWH /RZHU 4XDUWHU (VWDWH 0DU\nV +LOO (VWDWH 0W 'LOORQ (VWDWH 2UDQJH +LOO (VWDWH 3URYLGHQFH (VWDWH 5XQQHPHGH (VWDWH :KLP (VWDWH :RRGODQGV (VWDWH $GGLWLRQDO 6WUXFWXUHV 6XPPDU\ RI 5HJLRQDO 6XUYH\ [LY

PAGE 15

&+$37(5 5(68/76 2) ,17(16,9( 6859(< &RXUODQG (VWDWH 3UHYLRXV 5HVHDUFK $GGLWLRQDO 5HVHDUFK $UHD $UHD $UHD $UWLIDFWV $UHD /HV &RWHDX[ (VWDWH 2UDQJH +LOO (VWDWH 6XPPDU\ RI ,QWHQVLYH 6XUYH\ &+$37(5 $ 5(*,21$/ 3(563(&7,9( &RQVWUDLQWV WR 3URGXFWLRQ DQG /D\RXW $ 0RGHO (VWDWH 7KH (VWDWH +RXVH 7KH (VWDWH 9LOODJH $ '\QDPLF 3HUVSHFWLYH 6ODYH /LIH )UHH %ODFNV DQG ,QGLJHQRXV ,QKDELWDQWV )UHH /DERUHUV &RQFOXVLRQ 5()(5(1&(6 &,7(' %,2*5$3+,&$/ 6.(7&+ [Y

PAGE 16

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

PAGE 17

7DEOH ,QFRPH RI DQ LGHDOL]HG HVWDWH SURGXFLQJ +KGV WRQVf RI VXJDU ZLWK VODYHV 7DEOH ,QFRPH RI DQ LGHDOL]HG HVWDWH SURGXFLQJ +KGV WRQVf RI VXJDU ZLWK VODYHV 7DEOH 6XJDU HVWDWHV LQ FXOWLYDWLRQ IRU YDULRXV \HDUV 7DEOH 6XJDU H[SRUWV 7DEOH &KDQJH LQ VODYH SRSXODWLRQ 7DEOH 6XJDU H[SRUWV DQG 7DEOH 3HU GLHP SD\ VFDOH IRU DSSUHQWLFH ODERU 7DEOH &KDQJH LQ VXJDU SURGXFWLRQ GXULQJ ILUVW \HDU RI DSSUHQWLFHVKLS 6W 3DXOnV 3DULVK 7DEOH 6XPPDU\ RI HVWDWH FRPSRQHQWV LGHQWLILHG GXULQJ WKH UHJLRQDO VXUYH\ 7DEOH (VWDWH DQG ORW RZQHUVKLS IRU YDULRXV \HDUV 7DEOH 6XPPDU\ RI 6W 'DYLGnV (VWDWHV [YLL

PAGE 18

/,67 2) ),*85(6 )LJXUH 7REDJR 3DULVKHV )LJXUH 3K\VLFDO IHDWXUHV )LJXUH 3ULQFLSOH JHRORJLF VWUXFWXUHV )LJXUH 7RSRJUDSKLF DQG K\GURORJLF UHJLPHV )LJXUH 3ULQFLSOH URDGV DQG WRZQV )LJXUH 3URYLGHQFH 6XJDU )DFWRU\ FD )LJXUH 6W 'DYLGnV 3DULVK (VWDWHV )LJXUH 6W 'DYLGnV 3DULVK /RWV )LJXUH &RXUODQG (VWDWH )LJXUH &RXUODQG 6XJDU )DFWRU\ )LJXUH &RXUODQG (VWDWH 9LOODJH DQG 2OG (VWDWH +RXVH &RPSOH[ )LJXUH &RXUODQG 2OG (VWDWH +RXVH )LJXUH &RXUODQG (VWDWH 9LOODJH 6WUXFWXUHV $ DQG % )LJXUH /HV &RWHDX[ (VWDWH )LJXUH /HV &RWHDX[ 6XJDU )DFWRU\ &RPSOH[ )LJXUH /HV &RWHDX[ (VWDWH +RXVH )LJXUH 2UDQJH +LOO (VWDWH )LJXUH 2UDQJH +LOO (VWDWH +RXVH [YLLL

PAGE 19

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nV 3DULVK FRYHULQJ DQ DUHD RI DSSUR[LPDWHO\ DFUHV VTXDUH PLOHVf 7KHVH LQFOXGH SULPDULO\ VXJDU IDFWRULHV ZKHUH PXVFRYDGR VXJDU PRODVVHV DQG UXP ZHUH SURGXFHG HVWDWH KRXVHV ZKHUH WKH HVWDWH RZQHU OLYHG DQG HVWDWH YLOODJHV ZKHUH WKH ODERU XVHG RQ WKH HVWDWH ZDV KRXVHG $ YDULHW\ RI DQFLOODU\ VWUXFWXUHV PD\ DOVR EH SUHVHQW RQ D JLYHQ VXJDU HVWDWH [L[

PAGE 20

7KH VXUYH\ ORFDWHG UHPDLQV DVVRFLDWHG ZLWK RI WKH VXJDU HVWDWHV H[WDQW LQ 6W 'DYLGn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

PAGE 21

&+$37(5 7+( 6$,17 '$9,'n6 3$5,6+ $5&+$(2/2*,&$/ 6859(< 7KH DUFKDHRORJLFDO VXUYH\ UHSRUWHG KHUH H[DPLQHV WKH VHWWOHPHQW SDWWHUQ RI VXJDU HVWDWHV ZLWKLQ 6W 'DYLGnV 3DULVK RQH RI VHYHQ SDULVKHV WKDW PDNH XS WKH &DULEEHDQ LVODQG RI 7REDJR )LJXUH f 7KHVH SDULVKHV ZHUH GHILQHG E\ VXUYH\ EHWZHHQ DQG 1LGGULH f DIWHU WKH LVODQG ZKRVH RZQHUVKLS KDG EHHQ LQ GLVSXWH WKURXJKRXW WKH \HDUV VLQFH LWV GLVFRYHU\ E\ &ROXPEXV LQ $UFKLEDOG f ZDV ILQDOO\ FHGHG WR WKH %ULWLVK E\ WKH 7UHDW\ RI 3DULV LQ 5DJDW] f 6W 'DYLGnV 3DULVK FRYHUHG DQ DUHD RI DFUHV DSSUR[LPDWHO\ VTXDUH PLOHVf DV RULJLQDOO\ VXUYH\HG -HIIHU\V f ,Q VXJDU HVWDWHV ZHUH LQ RSHUDWLRQ ZLWKLQ WKH SDULVK
PAGE 23

FXOWXUDO EDFNJURXQGV DQG WKHLU GLVVLPLODU UROHV ZLWKLQ WKH SODQWDWLRQ SURGXFWLRQ V\VWHP %RWK JURXSV PHW WKHVH JRDOV DQG QHHGV E\ DFFHVVLQJ WKH DYDLODEOH QDWXUDO HQYLURQPHQW XVLQJ IDPLOLDU FXOWXUDOO\GHULYHG WHFKQLTXHV DSSURSULDWH WR WKHLU $IULFDQ DQG (XURSHDQ EDFNJURXQGV 7KH SULPDU\ JRDO RI WKH 6DLQW 'DYLGnV 6XUYH\ ZDV WR JHQHUDWH D PRGHO WR DFFRXQW IRU WKH SDWWHUQHG DUUDQJHPHQW RI VXJDU HVWDWHV RQ 7REDJR ZLWK VSHFLILF IRFXV RQ WKH ORFDWLRQ DQG OD\RXW RI WKH VWUXFWXUHV SUHVHQW RQ WKRVH HVWDWHV +LJPDQ f KDV SUHVHQWHG D PRGHO RI SODQWDWLRQ OD\RXW ZKLFK IRUPV WKH GHSDUWXUH SRLQW IRU WKLV GLVVHUWDWLRQ +LV UHVHDUFK LV GHULYHG IURP D FROOHFWLRQ RI HLJKWHHQWK DQG QLQHWHHQWK FHQWXU\ HVWDWH SODQV LQ WKH 1DWLRQDO /LEUDU\ RI -DPDLFD VKRZLQJ WKH LQWHUQDO VWUXFWXUH RI WKH PDSSHG SURSHUWLHV +LJPDQnV GRFXPHQWDU\ VRXUFHV ZHUH FUHDWHG SULPDULO\ WR VKRZ HVWDWH ERXQGDULHV DQG WKH ORFDWLRQV RI EXLOGLQJV DQG DFWLYLW\ DUHDV UHODWLYH WR HDFK RWKHU 7KLV IRFXV RQ WKH FXOWXUDO HQYLURQPHQW EXLOW E\ WKH -DPDLFDQ SODQWHUV ZDV DW WKH H[SHQVH RI GHWDLO UHODWLQJ WR WKH QDWXUDO HQYLURQPHQW +LJPDQnV DQDO\VLV LV WKHUHIRUH 7KHVH LQFOXGH SULPDULO\ HVWDWH KRXVHV VXJDU IDFWRULHV DQG HVWDWH YLOODJHV $ YDULHW\ RI RWKHU VWUXFWXUHV PD\ DOVR EH SUHVHQW RQ DQ HVWDWH 1DWXUDO IHDWXUHV DUH LQFRUSRUDWHG LQWR WKH -DPDLFDQ SODQV RQO\ ZKHQ WKH\ KDYH GLUHFW UHOHYDQFH WR WKH HFRQRPLF YDOXH RI WKH HVWDWH 7KXV ULYHUV WKDW VXSSO\ ZDWHU WR GULYH WKH ZDWHU ZKHHO DUH FRPPRQO\ UHSUHVHQWHG ZKLOH DOWHUQDWLYH ZDWHU VRXUFHV WKDW PD\ KDYH RWKHU XVHV DUH RPLWWHG

PAGE 24

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

PAGE 25

HQYLURQPHQW WR UHIOHFW WKHLU %ULWLVK KHULWDJH DQG FXOWXUDO DIILOLDWLRQ 0HWKRGV 7KH LQGLYLGXDO PHWKRGV DGRSWHG KHUH DUH VWDQGDUG SUDFWLFH IRU SUHKLVWRULF DQG KLVWRULFDO DUFKDHRORJLVWV $V LQWHJUDWHG HOHPHQWV LQ DQ RYHUDOO UHVHDUFK GHVLJQ WKHVH PHWKRGV KDYH QRW EHHQ DSSOLHG E\ SODQWDWLRQ DUFKDHRORJLVWV 7KH VSHFLILF PHWKRGV LQFOXGHG f§$ GRFXPHQWV VHDUFK RI SULPDU\ DQG VHFRQGDU\ VRXUFHV WR LGHQWLI\ VLWHV DQG WKHLU DSSUR[LPDWH ORFDWLRQV DQG WR FUHDWH D KLVWRULFDO FRQWH[W ZLWKLQ ZKLFK WKH UHVHDUFK UHVXOWV FRXOG EH XQGHUVWRRG f§$ UHJLRQDO VXUIDFH VXUYH\ WR SK\VLFDOO\ ORFDWH WKH PDWHULDO UHPDLQV RI LGHQWLILHG VLWHV DQG WKH ORFDO HQYLURQPHQWDO FRQWH[WV ZLWKLQ ZKLFK WKH\ RFFXU %DVHG RQ WKLV VXUYH\ EURDG SDWWHUQV RI VLWH OD\RXW DUH LGHQWLILHG DQG DQ LQLWLDO PRGHO IRUPXODWHG f§,QWHQVLYH VXUIDFH VXUYH\ DW VHOHFWHG VLWHV WR UHYHDO VSHFLILF YDULDWLRQ QRW DFFRXQWHG IRU E\ WKH LQLWLDO PRGHO f§/LPLWHG H[FDYDWLRQ DW DQ HVWDWH YLOODJH WR UHFRYHU DUFKDHRORJLFDO GDWD WKDW ZDV QRW RWKHUZLVH DYDLODEOH UHODWLQJ WR WKH YLOODJHnV LQWHUQDO VWUXFWXUH ,Q WKH FRXUVH RI WKH GRFXPHQWV VHDUFK GDWD ZHUH HQFRXQWHUHG ZKLFK GLG QRW KDYH GLUHFW UHOHYDQFH WR WKH UHVHDUFK SUREOHPV DGGUHVVHG :KHUH WKHVH GDWD DUH QRW RWKHUZLVH DYDLODEOH LQ WKH SXEOLVKHG OLWHUDWXUH RU DSSHDU LQ REVFXUH RU UDUH ERRNV WKH\ DUH LQFOXGHG LQ WKLV GLVVHUWDWLRQ SULPDULO\ LQ WDEXODU IRUPDW WR LQFUHDVH WKHLU DFFHVVLELOLW\

PAGE 26

2UJDQL]DWLRQ 7KH VWUXFWXUH RI WKLV GLVVHUWDWLRQ UHIOHFWV WKH PHWKRGV HPSOR\HG 7KH ILUVW SDUW &KDSWHUV WKURXJK LV SULPDULO\ GHULYHG IURP WKH GRFXPHQWV VHDUFK ,W SUHVHQWV WKH KLVWRULFDO DQG HQYLURQPHQWDO FRQWH[W ZLWKLQ ZKLFK WKH VHWWOHPHQW RI 7REDJR RFFXUUHG &KDSWHU GHVFULEHV WKH LVODQGnV SK\VLFDO IHDWXUHV IHDWXUHV ZKLFK FRQVWUDLQHG VHWWOHPHQW LQ VRPH DUHDV ZKLOH HQFRXUDJLQJ VHWWOHPHQW LQ RWKHUV &KDSWHU DGGUHVVHV WKH TXHVWLRQ RI ZK\ ZLWKLQ WKH FRQWH[W RI D UDSLGO\ GHYHORSLQJ &DULEEHDQ HFRQRP\ SHUPDQHQW VHWWOHPHQW GLG QRW RFFXU RQ 7REDJR XQWLO WKH PLGHLJKWHHQWK FHQWXU\ &KDSWHUV DQG SUHVHQW DQ HFRQRPLF KLVWRU\ RI 7REDJR :KLOH VHYHUDO JRRG ERRN OHQJWK HFRQRPLF KLVWRULHV RI WKH &DULEEHDQ KDYH EHHQ SXEOLVKHG HJ &XUWLQ *UHHQ .QLJKW 5DJDW] :LOOLDPV f RQO\ RQH IRFXVHV VSHFLILFDOO\ RQ 7REDJR 1DUGLQ f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

PAGE 27

SHUVSHFWLYH &KDSWHUV DQG SUHVHQW WKH GDWD UHFRYHUHG GXULQJ WKH FRXUVH RI DUFKDHRORJLFDO UHVHDUFKf§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

PAGE 28

&+$37(5 3+<6,&$/ $63(&76 2) 72%$*2 3K\VLFDO 'HVFULSWLRQ 7KH &DULEEHDQ LVODQG RI 7REDJR LV VLWXDWHG DW ODWLWXGH rn 1 DQG ORQJLWXGH rn : WKH H[WUHPH VRXWKHDVWHUQ SRLQW RI WKH /HVVHU $QWLOOHDQ LVODQG FKDLQ ,WV FORVHVW QHLJKERU LV WKH LVODQG RI 7ULQLGDG PLOHV WR WKH VRXWKZHVW ZKLOH WKH LVODQG RI *UHQDGD OLHV DSSUR[LPDWHO\ PLOHV WR WKH QRUWKZHVW 7REDJR LV VPDOO FRYHULQJ DQ DUHD RI DSSUR[LPDWHO\ VTXDUH PLOHV )LJXUH f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

PAGE 29

7REDJR )LJXUH 3K\VLFDO )HDWXUHV

PAGE 30

HYHQWXDOO\ WR D UHODWLYHO\ IODW OLWWRUDO SODLQ DW WKH LVODQGn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f *HRPRUSKRORJ\ 7KH PRVW UHFHQW JHRPRUSKRORJLFDO VWXGLHV RI 7REDJR LQGLFDWH WKDW WKH LVODQGnV FXUUHQW SRVLWLRQ DW WKH QRUWKHDVWHUQ FRUQHU RI WKH 6RXWK $PHULFDQ FRQWLQHQWDO VKHOI LV VHUHQGLSLWRXV 5DWKHU WKDQ EHLQJ FORVHO\ UHODWHG WR WKH 6RXWK $PHULFDQ FRQWLQHQW DV 7ULQLGDG LV LW QRZ DSSHDUV WKDW WKH JHRORJLF FRPSRQHQWV RI 7REDJR DUH SHWURJUDSKLFDOO\ DQG JHRFKHPLFDOO\ GLVWLQFW IURP WKRVH RI 7ULQLGDG GHVSLWH WKHLU FORVH SUR[LPLW\ :DGJH DQG 0F'RQDOG f DQG WKDW WKH WZR LVODQGV DUH VHSDUDWHG E\ D PDMRU IDXOW ]RQH

PAGE 32

5REHUWVRQ DQG %XUNH 6SHHG HW DO f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f :KLOH WKH UHODWLRQVKLS EHWZHHQ 7REDJR DQG WKH UHVW RI WKH /HVVHU $QWLOOHV WR WKH QRUWK LV PRUH XQFHUWDLQ 7REDJR DSSHDUV WR EH JHRPRUSKRORJLFDOO\ GLVWLQFW IURP WKH PRUH QRUWKHUO\ PHPEHUV RI WKH LVODQG FKDLQ :KHUH WKH PDMRULW\ RI WKH /HVVHU $QWLOOHDQ LVODQGV DUH FKDUDFWHUL]HG E\ IHDWXUHV RI UHFHQW RU FXUUHQW YROFDQLF DFWLYLW\ DQG D YROFDQLF FRUH VXUURXQGHG E\ HIIOXYLDO VNLUWV VORSLQJ JHQWO\ WR WKH VHD 1LGGULH f WKH URFNV RI 7REDJR DUH SULPDULO\ D FRPSOH[ LQWHUPL[WXUH RI LJQHRXV DQG PHWDPRUSKLF RULJLQ 6QRNH HW DO D Ef 7KH JHRORJLF FRUH RI 7REDJR WKH EDVHPHQW URFNV DURXQG DQG XSRQ ZKLFK WKH LVODQG LV IRUPHG LV FRPSRVHG RI WKUHH SUH&HQR]RLF EHOWV WUHQGLQJ HDVWZHVW DQG URXJKO\ WUDQVHFWLQJ WKH LVODQG 6QRNH HW DO Ef 7KH ROGHVW RI WKHVH EHOWV WKH 1RUWK &RDVW 6FKLVW 1&6f FRQWDLQV URFNV RI

PAGE 33

YROFDQLF RULJLQ WKDW ZHUH KHDWHG FRPSUHVVHG DQG WLOWHG E\ DQ LQWUXVLYH JURXS RI URFNV ZKLFK KDG VROLGLILHG IDU EHORZ WKH HDUWKnV VXUIDFH 7KH 1&6 IRUPV 7REDJRnV 0DLQ 5LGJH DQG WKH VWHHSO\ VORSLQJ QRUWK FRDVW 7KH SOXWRQLF LQWUXVLRQ FDXVHG LQWHQVLYH ZDUSLQJ GHIRUPLWLHV DQG IUDFWXUHV LQ WKH 1&6 DQG DUH WKH VHFRQG FRPSRQHQW RI 7REDJRnV WKUHH SUH &HQR]RLF EHOWV 7KH SOXWRQLF LQWUXVLRQ WRJHWKHU ZLWK WKH 1&6 IRUPV WKH MDJJHG LQWHULRU RI WKH LVODQG 7KH LQWUXVLRQ DOVR XSOLIWHG RWKHU URFNV RI YROFDQLF DQG VHGLPHQWDU\ RULJLQ WKH 7REDJR 9ROFDQLF *URXS 79*f ZKLFK RYHUOD\ WKH SOXWRQLF JURXS 7KH 79* LV WKH ILQDO FRPSRQHQW RI 7REDJRnV JHRORJLFDO XQGHUSLQQLQJV DQG LV H[SRVHG RQ WKH VRXWKHUQ VNLUWV RI WKH LVODQG H[WHQGLQJ DURXQG WKH VRXWKZHVWHUQ IODQNV RI WKH PDLQ ULGJH 2QFH 7REDJRnV FRUH KDG IRUPHG WKH JHQHVLV RI D IRXUWK URFN JURXS ZDV LQLWLDWHG E\ HURVLRQGHSRVLWLRQ RI H[LVWLQJ URFN DQG E\ RIIVKRUH FRUDO JURZWK 7KH SULPDU\ FRPSRQHQW LV FRUDOOLQH OLPHVWRQH ZKLFK PDNHV XS WKH FRUDO ORZODQGV WKDW GRPLQDWH WKH VRXWKZHVWHUQ HQG RI WKH LVODQG 7KH SUHVHQFH RI WKLV IRUPDWLRQ LV LQGLFDWLYH RI DV \HW XQGDWHG WHFWRQLF XSOLIW DQGRU VHD OHYHO VXEVLGHQFH 6QRNH HW DO Ef 7KLV PD\ KDYH RFFXUUHG LQ WZR VWDJHV DV D WHUUDFH LV HYLGHQW LQ WKH FRUDO ORZODQGV DW DERXW PHWHUV DERYH VHD OHYHO 1LGGULH f

PAGE 34

7RSRJUDSK\ DQG +\GURORJ\ 7KH IRXU URFN JURXSV ZKLFK IRUP 7REDJR DUH GLIIHUHQWLDOO\ UHVLVWDQW WR HURVLRQ ,Q DGGLWLRQ WKHLU UHVLVWDQFH WR HURVLRQ LV HQKDQFHG RU PLWLJDWHG E\ WKHLU VORSH 7KHVH IDFWRUV DOORZ WKH GLYLVLRQ RI WKH LVODQG LQWR IRXU WRSRJUDSKLF DQG K\GURORJLF UHJLPHV )LJXUH f $V PRLVWXUH IDOOV RQ WKH LVODQG LQ WKH IRUP RI UDLQ LW IRUPV ULYXOHWV VWUHDPV DQG ULYHUV ZKLFK FDUU\ LW WR WKH VHD 'HSHQGLQJ RQ WKH HURVLRQDO UHVLVWDQFH DQG VORSH RI WKH XQGHUO\LQJ JHRORJLFDO VWUXFWXUHV WKHVH GUDLQDJHV PD\ EH VKRUW DQG VWHHS RU ORQJ DQG JHQWO\ VORSLQJ 7KH VKRUWHVW DQG VWHHSHVW GUDLQDJHV H[LVW RQ WKH QRUWKHUQ VORSHV RI WKH PDLQ ULGJH DQG UXQ WR WKH &DULEEHDQ 6HD :KLOH WKH 1&6 ZKLFK XQGHUOLHV WKH ULGJH KDV D KLJK HURVLRQDO UHVLVWDQFH LW LV VWHHSO\ VORSHG 5XQRII ZDWHU LV WKXV IDVW PRYLQJ DQG FUHDWHV VWHHS GHFOLYLWLHV SDUWLFXODUO\ LQ WKH SUHVHQFH RI WKH ORFDOL]HG IDXOWLQJ FKDUDFWHULVWLF RI WKH 1&6 /LWWOH VRXWKHUQ GULIWLQJ RI WKH KHDGZDWHUV RI WKHVH VWUHDPV KDV RFFXUUHG DQ DFWLRQ ZKLFK ZRXOG KDYH OHQJWKHQHG WKHLU FRXUVHV EHFDXVH DW WKH WRS RI WKH ULGJH WKH WUDQVSRUWHG ZDWHU KDV QRW \HW GHYHORSHG HLWKHU WKH VSHHG RU WKH YROXPH ZKLFK ZRXOG DOORZ LW WR GRZQFXW WKH XQGHUO\LQJ VWUXFWXUH $ VHFRQG WRSRJUDSKLF DQG K\GURORJLF UHJLPH H[LVWV RQ WKH VRXWKHDVWHUQ IODQNV RI WKH PDLQ ULGJH +HUH WKH XQGHUO\LQJ VWUXFWXUH FRQVLVWV RI WKH LQWUXVLYH SOXWRQLFV DQG

PAGE 36

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f 'UDLQDJHV LQ WKLV WKH LVODQGnV VRXWKHDVWHUQ VORSH IHHG DQG LQFOXGH WKH %DFROHW 5LYHU WKH (DVW DQG :HVW +LOOVERURXJK 5LYHUV WKH *ROGVERURXJK 5LYHU WKH 5LFKPRQG 5LYHU WKH $UJ\OH 5LYHU DQG WKH /RXLV Gn2U 5LYHU 7KH VROH PHPEHU RI WKH WKLUG WRSRJUDSKLF DQG K\GURORJLF UHJLPH LV WKH &RXUODQG 5LYHU $ULVLQJ LQ WKH 1&6 JURXS WKH &RXUODQG KDV PDQDJHG WR EUHDN WKURXJK WR WKH EURDG JHQWO\ VORSLQJ PHPEHUV RI WKH 79* WKDW RFFXS\ WKH DUHD LPPHGLDWHO\ VRXWKZHVW RI WKH PDLQ ULGJH :KLOH WKH VDPH VKHOYHV WKDW

PAGE 37

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f 7KH ILQDO WRSRJUDSKLF DQG K\GURORJLF UHJLPH FRYHUV WKH FRUDO ORZODQGV DW WKH VRXWKZHVWHUQ H[WUHPLW\ RI WKH LVODQG $OPRVW IODW GUDLQDJH LQ WKLV DUHD RFFXUV PRUH E\ VHHSDJH WKURXJK WKH OLPHVWRQH LWVHOI DQG UDWKHU OHVV E\ VXUIDFH UXQRII 6XUIDFH ZDWHU LV VFDUFH GXULQJ WKH GU\ VHDVRQ RFFXUULQJ PRVW IUHTXHQWO\ DV VSULQJV ZKHUH XQGHUO\LQJ 79* URFNV DSSURDFK WKH VXUIDFH 7KH IUHTXHQWO\ KHDY\ SUHFLSLWDWLRQ RI WKH UDLQ\ VHDVRQ KRZHYHU KDV SURGXFHG D V\VWHP RI VKDOORZ FD IWf YDOOH\V WKURXJKRXW WKH FRUDO ORZODQGV SURYLGLQJ DW OHDVW VRPH WRSRJUDSKLF UHOLHI 1LGGULH f 7KH SUHVHQFH RI DW OHDVW WZR YROFDQLF QHFNV WKH PRUH HURVLRQDOO\ UHVLVWDQW FRUH RI H[WLQFW YROFDQRHVf LQ WKH YLFLQLW\ RI WKH YLOODJH RI 0W 3OHDVDQW FRQWULEXWHV IXUWKHU WRSRJUDSKLF YDULHW\ (XEDQNV f

PAGE 38

&OLPDWLF &RQGLWLRQV 7KH WZR PRVW LPSRUWDQW HOHPHQWV RI 7REDJRn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f %\ IDU WKH PDMRULW\ RI WKH UDLQIDOO KRZHYHU LV VHDVRQDO $OWKRXJK WKH DPRXQW RI VHDVRQDO UDLQ YDULHV WKURXJKRXW WKH LVODQG 7DEOH f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

PAGE 39

UDUH DQG WHQG WR EH OHVV GHVWUXFWLYH WKDQ VLPLODU VWRUPV WR WKH QRUWK 7KH ODVW PDMRU KXUULFDQH WR LPSDFW 7REDJR ZDV +XUULFDQH )ORUD LQ 3ULRU WR WKDW RQH PXVW JR DOO WKH ZD\ EDFN WR IRU D VWRUP RI VLPLODU PDJQLWXGH DOWKRXJK VPDOOHU VWRUPV KLW WKH LVODQG LQ DQG (XEDQNV 1LGGULH f 7DEOH $YHUDJH UDLQIDOO LQ 7REDJR 0RQWK $YHUDJH UDLQIDOO LQf -DQXDU\ f )HEUXDU\ &1 0DUFK $SULO 0D\ YR f LQ -XQH -XO\ $XJXVW 6HSWHPEHU f 92 2FWREHU 1RYHPEHU 'HFHPEHU 7RWDO $IWHU 1LGGULH (SLGHPLRORJ\ $ WKLUG FRQVLGHUDWLRQ IRU WKH HDUO\ SODQWHUV ZKHQ VHOHFWLQJ WKHLU ODQGV ZDV HSLGHPLRORJLFDO 7REDJRnV ULYHU YDOOH\V WHQG WR EH GHHS ZLWK D FRUUHVSRQGLQJ KLJK GHJUHH RI KXPLGLW\ DQG ULYHU DQG VWUHDP PRXWKV DUH IUHTXHQWO\ EORFNHG

PAGE 40

E\ ZDYHERUQH VDQG EDUV LQ WKH GU\ VHDVRQ FUHDWLQJ SRROV VWDJQDQW ZDWHU ,Q ERWK LQVWDQFHV DQ LGHDO PRVTXLWR EUHHGLQJ JURXQG LV SUHVHQW :KHUH WKHVH IHDWXUHV DUH FRXSOHG ZLWK FRDVWDO ODJRRQV DQG PDQJURYH VZDPSV PDODULDO DQG RWKHU WURSLFDO LQIHFWLRQV EHFDPH D UHDO WKUHDW ,QGHHG WKH HDUO\ SODQWHUV ZHUH KLJKO\ FRJQL]DQW RI WKH IDFW WKDW LQ 7REDJRnV WURSLFDO FOLPDWH GHDWK E\ PDODULD RU RWKHU WURSLFDO GLVHDVH ZDV D YHU\ UHDO SRVVLELOLW\
PAGE 41

)LJXUH 7REDJR 3ULQFLSOH 5RDGV DQG 7RZQV

PAGE 42

FRQFHQWUDWLRQ LV ZLWKLQ WKH WRZQn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nV HDUOLHVW SHUPDQHQW VHWWOHPHQWV VHH &KDSWHU f ,QGHHG LW PD\ KDYH EHHQ WKH YHU\ ILUVW WRZQ DV WKH 'XWFK VHWWOHG QHDUE\ DV HDUO\ DV %RRPHUW HW DO f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

PAGE 43

6LQFH WKH GHYHORSPHQW RI &URZQ 3RLQW $LUSRUW DW WKH H[WUHPH VRXWKZHVWHUQ WLS RI WKH LVODQG WKH DUHD LQ LWV YLFLQLW\ KDV EHHQ GHYHORSLQJ UDSLGO\ 7KLV DUHD WRR VHUYHV SULPDULO\ WRXULVWV WKRXJK RI D GLIIHUHQW NLQG 7KH PDMRULW\ RI WKH LVODQGnV JXHVW KRXVHVf§VPDOO LQH[SHQVLYH KRWHOV RIIHULQJ IXQFWLRQDO OLYLQJ VSDFHVf§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f§VHH &KDSWHU f 9LOODJHV ORFDWHG LQ WKH LQWHULRU RI WKH LVODQG DUH SULPDULO\ DJULFXOWXUDO ZKLOH WKRVH RQ WKH FRDVW VXSSRUW ERWK DJULFXOWXUH DQG WKH ORFDO ILVKLQJ LQGXVWU\ ([DPSOHV RI WKH IRUPHU LQFOXGH %HWKHO /HV &RWHDX[ DQG 0W 3OHDVDQW ZKLOH H[DPSOHV RI WKH ODWWHU LQFOXGH &DVWDUD &KDUORWWHYLOOH DQG 0W 6W *HRUJH )LJXUH f

PAGE 44

&+$37(5 )$&7256 ())(&7,1* ($5/< &2/21,=$7,21 ())2576 (DUO\ +LVWRU\ 7REDJRnV HDUO\ KLVWRU\ LV FRPSOH[ )URP LWV ILUVW GLVFRYHU\ E\ (XURSHDQV LQ XQWLO LWV ILQDO UHFDSWXUH E\ WKH %ULWLVK LQ WKH LVODQG FKDQJHG KDQGV PRUH IUHTXHQWO\ WKDQ DQ\ RWKHU LQ WKH &DULEEHDQ 1LGGULH f 7KH FRORQLDO IODJV RI (QJODQG )UDQFH 6SDLQ +ROODQG DQG WKH 'XFK\ RI &RXUODQG PRGHUQGD\ /DWYLDf DV ZHOO DV WKH LQGHSHQGHQW 5HSXEOLF RI 7ULQLGDG DQG 7REDJR KDYH DOO IORZQ RYHU WKH LVODQG DW RQH WLPH RU DQRWKHU &RPSUHKHQVLYH WUHDWPHQWV RI WKH HDUO\ KLVWRU\ RI 7REDJR DUH DYDLODEOH LQ $UFKLEDOG f (XEDQNV f DQG /LFKWYHOG f 5DWKHU WKDQ VLPSO\ UHLWHUDWLQJ WKHLU GLVFXVVLRQV WKLV FKDSWHU SUHVHQWV D EURDGHU WUHDWPHQW RI HYHQWV DIIHFWLQJ WKH HDUO\ KLVWRU\ RI 7REDJR )RUHPRVW DPRQJ WKHVH ZDV WKH DGRSWLRQ RI VXJDU FDQH DV WKH PDMRU FDVK FURS RI WKH &DULEEHDQ ZLWK WKH FRQFRPLWDQW UHOLDQFH RQ $IULFDQ VODYHV DV ODERU 7KH HYHQWV ZKLFK OHG WR WKH SULPDF\ RI VXJDU DUH EHVW XQGHUVWRRG E\ IRFXVLQJ RQ (XURSH DQG RQ (XURSHDQ DWWLWXGHV WRZDUGV WKH &DULEEHDQ 0LQW] :ROI f

PAGE 45

6XJDU &ROXPEXVnV YR\DJHV RI GLVFRYHU\ ZHUH VSRQVRUHG E\ WKH 6SDQLVK FURZQ DQG 6SDLQ EHFDPH WKH ILUVW GRPLQDQW (XURSHDQ SRZHU LQ WKH &DULEEHDQ DQG WKH UHVW RI WKH 1HZ :RUOG 'XULQJ WKH HDUOLHVW SHULRG RI 6SDQLVK VXSUHPDF\ WKHUH ZDV D EULHI IOXRUHVFHQFH RI DJULFXOWXUDO SURGXFWLRQ LQ WKH $PHULFDQ FRORQLHV 7KH 6SDQLVK UHFRJQL]HG WKH SRWHQWLDO RI VXJDU YHU\ HDUO\ LQ WKHLU FRORQL]DWLRQ HIIRUWV &DQH ZDV ILUVW LQWURGXFHG LQWR +LVSDQLROD E\ &ROXPEXV LQ RQ KLV VHFRQG YR\DJH 0LQW] f %\ WKH PLGVL[WHHQWK FHQWXU\ WR VXJDU IDFWRULHV ZHUH LQ RSHUDWLRQ RQ +LVSDQLROD DORQH /DV &DVDV LQ :LOOLDPV f :KLOH WKHVH IDFWRULHV ZHUH IDLUO\ SULPLWLYH ZKHQ FRPSDUHG WR WKH QLQHWHHQWK FHQWXU\ WHFKQRORJ\ WKH\ SURGXFHG FRSLRXV DPRXQWV RI VXJDU :LOOLDPV f 'XULQJ WKH LQLWLDO SHULRG RI 6SDQLVK SURGXFWLRQ KRZHYHU &DULEEHDQ VXJDU ZDV PRVWO\ VROG LQ WKH H[WUHPHO\ OLPLWHG 1HZ :RUOG PDUNHW ZKLOH WKH PRUH H[WHQVLYH 2OG :RUOG GHPDQG ZDV VXSSOLHG E\ WKH 3RUWXJXHVH SRVVHVVLRQV LQ WKH 0HGLWHUUDQHDQ DQG WKH $WODQWLF :LOOLDPV f %\ WKH VHFRQG TXDUWHU RI WKH VL[WHHQWK FHQWXU\ WKH DWWHQWLRQ RI WKH 6SDQLVK LQ WKH 1HZ :RUOG VKLIWHG DZD\ IURP DJULFXOWXUDO SURGXFWLRQ $IWHU WKH JRDO RI 6SDQLVK H[SORUDWLRQ ZDV SULPDULO\ WKH DFTXLVLWLRQ RI SUHFLRXV PHWDOV ,QGHHG SUHFLRXV PHWDOV ZHUH VR LPSRUWDQW WR WKH 6SDQLVK WKDW RQH +LVWRULDQ VWDWHV WKDW LW ZDV JROG ZKLFK

PAGE 46

GHWHUPLQHG WKH ORFDWLRQ RI 6SDQLVK VHWWOHPHQWV ZKLFK OHG WR WKHLU FRQFHQWUDWLRQ RQ WKH *UHDWHU $QWLOOHV DQG WR WKHLU QHJOHFW RI WKH /HVVHU $QWLOOHV H[FHSW WKRVH ZKLFK KDG VWUDWHJLF VLJQLILFDQFH IRU WKH SURWHFWLRQ RI WKH WUDGH URXWHV :LOOLDPV f ,QLWLDOO\ JROG ZDV UHFRYHUHG IURP GHSRVLWV RQ +LVSDQLROD 7KHVH ZHUH UDSLGO\ GHSOHWHG KRZHYHU DQG WKH IRFXV RI H[SORUDWLRQ VKLIWHG WR RWKHU &DULEEHDQ LVODQGV DQG WR PDLQODQG &HQWUDO DQG 6RXWK $PHULFD 7KH YDVW ULFKHV RI WKH $]WHF DQG ,QFD (PSLUHV ILUHG WKH LPDJLQDWLRQ RI 6SDQLDUGV :LOOLDPV f 0DQ\ UHVLGHQWV RI WKH &DULEEHDQ UHHPLJUDWHG WR WKH PDLQODQG ZKLOH QHZ DUULYDOV IURP 6SDLQ WHQGHG WR E\SDVV WKH &DULEEHDQ HQWLUHO\ ,QWHUHVW LQ WKH DJULFXOWXUDO SRWHQWLDO RI WKH &DULEEHDQ GHFOLQHG DV D UHVXOW 7KH 6SDQLVK FRORQLHV RQ +LVSDQLROD DQG SDUWLFXODUO\ &XED EHFDPH NH\ VWUDWHJLF SRLQWV IRU SURWHFWLQJ 6SDQLVK JROG DQG VLOYHU VKLSPHQWV GXULQJ WKH KD]DUGRXV LQLWLDO VWDJHV RI WKH $WODQWLF FURVVLQJ .QLJKW f 6SDQLVK GRPLQDQFH RI WKH &DULEEHDQ ODVWHG XQWLO WKH VHFRQG TXDUWHU RI WKH VHYHQWHHQWK FHQWXU\ 'XULQJ WKLV SHULRG RI 6SDQLVK KHJHPRQ\ QR RWKHU (XURSHDQ SRZHU SRVVHVVHG ERWK WKH VWUHQJWK DQG WKH GHVLUH WR JDLQ D IRRWKROG LQ WKH &DULEEHDQ ,W ZDV QRW XQWLO WKH FHVVDWLRQ LQ RI D WUXFH EHWZHHQ WKH 6SDQLVK DQG WKH 'XWFK WKDW DQ\ (XURSHDQ SRZHU FRXOG VXFFHVVIXOO\ FKDOOHQJH 6SDQLVK GRPLQDQFH :LWK

PAGE 47

WKH HQG RI WKH WUHDW\ KRZHYHU WKH 'XWFK TXLFNO\ PRYHG WR XVXUS 6SDQLVK SRZHU 7KH\ DFFRPSOLVKHG WKLV E\ ILUVW JDLQLQJ FRQWURO RI WKH $WODQWLF VHDODQHV 'XWFK KDUDVVPHQW DQG HYHQWXDO GHVWUXFWLRQ RI WKH 6SDQLVK QDY\ RSHQHG WKH ZD\ WR VHWWOHPHQW RI WKH &DULEEHDQ E\ RWKHU (XURSHDQ SRZHUV 3DUU\ f 7KH %ULWLVK TXLFNO\ PRYHG LQ VHWWOLQJ %DUEDGRV DQG SDUW RI 6W &URL[ f 1HYLV f $QWLJXD DQG 0RQWVHUUDW f DQG 6W /XFLD f 7KH\ LQ WXUQ ZHUH UDSLGO\ IROORZHG E\ WKH )UHQFK 0DUWLQLTXH DQG *XDGHORXSHf .QLJKW f ,W ZDV DOVR GXULQJ WKLV SHULRG WKDW (XURSHDQ DGYHQWXUHUV PDGH WKH ILUVW VHULRXV DWWHPSWV WR VHWWOH 7REDJR (XEDQNV f %ULWLVK DQG )UHQFK IRUD\V LQWR WKH &DULEEHDQ ZHUH PDGH ZLWK WKH LQWHQW WR HVWDEOLVK DJULFXOWXUDO FRORQLHV &XUWLQ f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

PAGE 48

DQG SRSXODULW\ RI WKH QHZ FRPPRGLW\ EHJDQ WR ULVH )URP LWV HDUO\ EHJLQQLQJV DV D WDVW\ EXW UDUH FRQGLPHQW RQ WKH (XURSHDQ WDEOH WKH PDUNHW GHPDQG EHFDPH LQFUHDVLQJO\ HODVWLF DQG VXJDU SURGXFWLRQ UDSLGO\ H[SDQGHG 0LQW] f 'XULQJ WKH ILUVW ILIWHHQ WR WZHQW\ \HDUV RI FRORQL]DWLRQ DIWHU DQ LQLWLDO SHULRG RI H[SHULPHQWDWLRQ ZLWK D YDULHW\ RI FURSV LW EHFDPH DSSDUHQW WKDW WREDFFR SURGXFWLRQ RIIHUHG WKH PRVW OXFUDWLYH UHWXUQV DQG WKH HDUO\ VXFFHVVHV RI WKH QHZ FRORQLHV ZHUH ODUJHO\ EDVHG RQ WKLV FURS %DWLH f 7KH HFRQRPLF SRWHQWLDO RI WREDFFR ZDV ILUVW UHDOL]HG E\ WKH %ULWLVK FRORQLVWV RI 9LUJLQLD 7KH\ ILUVW EHJDQ JURZLQJ WKH FURS DURXQG DQG E\ D SODQWHU FRXOG PDNH SURILWV RI XS WR e \HDUO\ DW D WLPH ZKHQ WKH DYHUDJH ODERUHU LQ (QJODQG ZDV PDNLQJ D PHUH e V SHU \HDU %DWLH f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

PAGE 49

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f 7KLV LQLWLDOO\ RFFXUUHG LQ %DUEDGRV %HIRUH VXJDU FDQH FRXOG EH VXFFHVVIXOO\ DGRSWHG LQ WKH &DULEEHDQ DV WKH GRPLQDQW FURS WKUHH SUHFRQGLWLRQV KDG WR EH PHW 7KH ILUVW SUHFRQGLWLRQV UHODWH DW OHDVW LQGLUHFWO\ WR WKH KLJK FRVW RI WKH HTXLSPHQW QHFHVVDU\ IRU VXJDU SURGXFWLRQ )LUVW WKH LVODQGV XSRQ ZKLFK VXJDU SURGXFWLRQ RFFXUUHG KDG WR EH VDIH IURP IRUHLJQ DWWDFN (FRQRPLFDOO\ LW ZDV SRRU SUDFWLFH WR LQYHVW LQ VXJDU SURGXFWLRQ KDUGZDUH LI WKDW KDUGZDUH ZDV OLDEOH WR

PAGE 50

GHVWUXFWLRQ E\ IRUHLJQ LQYDGHUV 6HFRQG LQGLYLGXDOV QHHGHG DFFHVV WR VXIILFLHQW FDSLWDO WR DIIRUG WKH LQLWLDO LQYHVWPHQWV LQ VXJDU WHFKQRORJ\ %RWK RI WKHVH SUHFRQGLWLRQV ZHUH UHDOL]HG LQ WKH &DULEEHDQ DV D UHVXOW RI HDUOLHU WREDFFR DQG FRWWRQ SURGXFWLRQ DQG E\ WKH LQWHUYHQWLRQ RI WKH 'XWFK ,Q WKH HDUO\ VHYHQWHHQWK FHQWXU\ %ULWDLQ ZDV LQ WKH GHSWKV RI D GHSUHVVLRQ DQG RQ WKH YHUJH RI FLYLO ZDU DQG PDQ\ SHRSOH FKRVH WR PLJUDWH WR WKH 1HZ :RUOG :KHQ WREDFFR SULFHV EHJDQ WR GURS LQ %ULWLVK HPLJUDQWV WR WKH FRORQLHV EHJDQ WR RSW IRU WKH &DULEEHDQ ZKHUH D EURDGHU YDULHW\ RI RSSRUWXQLWLHV ZDV DYDLODEOH UDWKHU WKDQ 9LUJLQLD %DUEDGRV ZDV D SDUWLFXODUO\ GHVLUDEOH GHVWLQDWLRQ DV LWV HQYLURQPHQW SURYHG WR EH SDUWLFXODUO\ VXLWDEOH IRU FRWWRQ SURGXFWLRQ 7KXV E\ WKH WLPH FRWWRQ SULFHV EHJDQ WR IDOO %DUEDGRV DOUHDG\ KDG D JUHDWHU SRSXODWLRQ GHQVLW\ WKDQ DQ\ RWKHU FRORQ\ LQ WKH 1HZ :RUOG 7KH VKHHU QXPEHUV RI UHVLGHQWV SDUWLFXODUO\ ZKHQ FRPELQHG ZLWK %DUEDGRVn ZLQGZDUG ORFDWLRQ &XUWLQ f PDGH WKH LVODQG UHDVRQDEO\ VDIH IURP IRUHLJQ LQYDVLRQ $W WKH VDPH WLPH WKH VXFFHVV RI FRWWRQ LQ %DUEDGRV FUHDWHG D VL]HDEOH XSSHU FODVV DQ XSSHU FODVV WKDW FRXOG DIIRUG WR ULVN FDSLWDO E\ LQYHVWLQJ LQ WKH HJXLSPHQW UHTXLUHG IRU VXJDU SURGXFWLRQ %DWLH f 7KH ILQDO UHTXLUHPHQW IRU VXFFHVVIXO VXJDU SURGXFWLRQ ZDV WHFKQLFDO NQRZOHGJH 7KH SURGXFWLRQ RI VXJDU LV D

PAGE 51

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f 7KHLU LQWHQWLRQ ZDV WR FUHDWH WUDGH HQWUHSRWV DQ DFWLYLW\ ZKLFK RQ D ODUJHU VFDOH KDG VXFFHVVIXOO\ VXSSRUWHG WKH 'XWFK KRPHODQG 7KH VXFFHVV RI WKHVH LQFLSLHQW WUDGLQJ FHQWHUV KRZHYHU UHTXLUHG D YLDEOH &DULEEHDQ HFRQRP\ ,W ZDV WKHUHIRUH LQ WKH 'XWFK LQWHUHVW WR KHOS WKH RWKHU FRORQLVWV $V SDUW RI WKHLU FDPSDLJQ DJDLQVW WKH 6SDQLVK WKH 'XWFK KDG HDUOLHU WDNHQ 3RUWXJXHVH %UD]LO FKDOOHQJLQJ WKH XQLWHG NLQJGRPV RI 6SDLQ DQG 3RUWXJDO 7KH %UD]LOLDQ HFRQRP\ DW WKDW WLPH ZDV GHSHQGHQW ODUJHO\ RQ VXJDU DQG LW ZDV D UHODWLYHO\ VLPSOH PDWWHU WR WUDQVSRUW WKH NQRZOHGJH RI VXJDU SURGXFWLRQ 'XULQJ WKLV SHULRG WKH 3RUWXJXHVH DQG 6SDQLVK FURZQV ZHUH XQLWHG DQG DQ\ DFWLRQ DJDLQVW 3RUWXJDO ZDV DQ DFWLRQ DJDLQVW 6SDLQ

PAGE 52

IURP %UD]LO WR %DUEDGRV %DWLH f LQ QHHG RI D FDVK FURS WR UHSODFH FRWWRQ DQG VXSSRUW WKH GHQVH %DUEDGLDQ SRSXODWLRQ WKH LVODQGnV RIILFLDOV VLPSO\ ORRNHG WKH RWKHU ZD\ 7KH 'XWFK LQ WXUQ DVVXUHG WKHPVHOYHV RI D UHDG\ PDUNHW IRU WKHLU JRRGV IRUHPRVW RI ZKLFK ZHUH $IULFDQ VODYHV 6ODYHU\ (XURSHDQV EURXJKW $IULFDQ VODYHV WR WKH 1HZ :RUOG VKRUWO\ DIWHU LQLWLDO VHWWOHPHQW $V HDUO\ DV WKH 6SDQLVK RQ +LVSDQLROD EHJDQ LPSRUWLQJ $IULFDQV 5RXW f 7KLV ZDV LQLWLDOO\ GRQH DV DQ H[SHULPHQW DV WKH 6SDQLVK ZHUH TXLFN WR UHDOL]H WKDW WKH ORFDOO\ DYDLODEOH ODERU GHFLPDWHG E\ (XURSHDQ GLVHDVHV DQG GHELOLWDWLQJ ODERU LQ WKH ILHOGV DQG PLQHV ZDV XQVXLWHG WR WKH 6SDQLVK UHJLPH %\ RQO\ WR QDWLYH LQKDELWDQWV ZHUH OHIW RQ WKH LVODQG DQ LVODQG WKDW PD\ KDYH VXSSRUWHG XS WR HLJKW PLOOLRQ LQKDELWDQWV LQ %RUDK DQG &RRN &RRN f 7KH 6SDQLVK WUDYHOOHG WR RWKHU LVODQGV LQ VHDUFK RI DGGLWLRQDO ODERU DQG WKHVH LVODQGV WRR ZHUH VRRQ HIIHFWLYHO\ GHSRSXODWHG :KLOH WKH HQVODYHPHQW RI $IULFDQV ZDV FHUWDLQO\ SUDFWLFHG E\ WKH 6SDQLVK LQ WKH 1HZ :RUOG LW ZDV QRW XQWLO WKH LQWURGXFWLRQ RI DQ HFRQRP\ EDVHG XSRQ VXJDU SURGXFWLRQ WKDW VODYHU\ LQ WKH $PHULFDV UHDFKHG IXOO PDWXULW\ 7KLV LQLWLDOO\ RFFXUUHG LQ QRUWKHDVWHUQ %UD]LO 'XULQJ WKH

PAGE 53

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f ,QGHHG WKH VLWXDWLRQ LQ %UD]LO ZDV H[DFHUEDWHG E\ WKH IDFW WKDW 1DWLYH $PHULFDQ VODYHV FRXOG HDVLO\ DEVHQW WKHPVHOYHV IURP WKH SODQWDWLRQV IOHHLQJ WR WKH LQWHULRU ZKHUH WKH\ FRXOG UHLQVWLWXWH WKH HFRQRPLF DQG FXOWXUDO V\VWHP WKDW KDG VXSSRUWHG WKHP LQ WKH SDVW :DJOH\ f +DYLQJ EHHQ H[SRVHG WR (XURSHDQV DQG WKHLU GLVHDVHV IRU GHFDGHV KRZHYHU DQG KDYLQJ LPPXQLW\ WR D KRVW RI RWKHU WURSLFDO GLVHDVHV FRPPRQ WR ERWK $IULFD DQG WKH 1HZ :RUOG LQ $IULFDQV WKH 3RUWXJXHVH KDG WKH LGHDO ODERU IRUFH IRU 1HZ :RUOG SODQWDWLRQV $Q DGGLWLRQDO DGYDQWDJH ZDV WKDW HQVODYHG $IULFDQ KDG OLWWOH RU QR PHDQV RI HVFDSH $V (XEDQNV f SXWV LW WKH\ ZHUH DV DOLHQ RII WKH SODQWDWLRQ DV WKH\ ZHUH RQ LW

PAGE 54

:KHQ WKH 'XWFK FRQTXHUHG 3RUWXJXHVH %UD]LO LQ &XUWLQ f WKH\ IRXQG D IXOOEORZQ SODQWDWLRQ HFRQRP\ EDVHG RQ WKH SURGXFWLRQ RI VXJDU DQG WKH HQVODYHPHQW RI $IULFDQV DOUHDG\ LQ SODFH 1HYHUWKHOHVV WKH 'XWFK UHFRJQL]HG WKDW ZLWKRXW D VWHDG\ VXSSO\ RI QHZ VODYHV WKLV W\SH RI HFRQRP\ FRXOG QRW ODVW VLQFH HYHQ ZLWK WKHLU GLVHDVH LPPXQLWLHV WKH $IULFDQ SRSXODWLRQ RI %UD]LO ZDV QRW VHOIUHSURGXFLQJ 7KLV ZDV GXH LQ SDUW WR WKH DUGXRXV ZRUNLQJ FRQGLWLRQV RI WKH SODQWDWLRQ UHJLPH DQG LQ SDUW WR WKH VNHZHG VH[UDWLRV RI LPSRUWHG $IULFDQVf§PDQ\ PRUH PDOHV ZHUH LPSRUWHG WKDQ IHPDOHV &XUWLQ f 7R HQVXUH WKH FRQWLQXHG VXFFHVV RI WKHLU QHZ KROGLQJV WKH 'XWFK VHL]HG 3RUWXJXHVHKHOG $IULFDQ SRUWV RQ WKH *ROG &RDVW DQG LQ $QJROD VHFXULQJ IRU WKHPVHOYHV D VWHDG\ VXSSO\ RI VODYHV &XUWLQ f :LWK DFFHVV WR VODYHV DQG ZLWK JURZLQJ HQWUHSRWV LQ WKH &DULEEHDQ LQ QHHG RI D YLDEOH PDUNHW WKH 'XWFK ZHUH ZLOOLQJ WR VKDUH WKHLU NQRZOHGJH RI VXJDU SURGXFWLRQ VWROHQ IURP %UD]LO ZLWK WKH %ULWLVK FRORQLVWV RQ %DUEDGRV %DWLH f 7KH ILUVW UHFRUGHG VKLSPHQW RI VXJDU UHDFKHG (QJODQG IURP %DUEDGRV LQ %DWLH f ,Q WKDW VDPH \HDU SURGXFWLRQ ZDV LQLWLDWHG RQ WKH %ULWLVKKHOG SRUWLRQ RI 6W .LWWV DQG E\ WKH )UHQFK KDG EHJXQ WR SURGXFH VXJDU RQ *XDGHORXSH 7KH VXJDU ERRP ZDV RQ LQ WKH &DULEEHDQ DQG WKH UK\WKPV RI VXJDU SURGXFWLRQ ZRXOG HYHQWXDOO\ GRPLQDWH DOPRVW WKH HQWLUH DUFKLSHODJR

PAGE 55

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n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

PAGE 56

DQG IURP 7REDJR VDLOLQJ VKLSV FDWFKLQJ WKH SUHYDLOLQJ HDVWHUO\ WUDGH ZLQGV FRXOG VZHHS WKH HQWLUH &DULEEHDQ LVODQG FKDLQ EULQJLQJ QDYDO SUHVVXUH WR EHDU ZKHUHYHU DQG ZKHQHYHU WKH SRVVHVVRUV RI 7REDJR SOHDVHG %\ WKH VDPH WRNHQ VKLSV IURP RWKHU LVODQGV KDG D GLIILFXOW WLPH PDQHXYHULQJ WR 7REDJR LQ LWV XSZLQG ORFDWLRQ 7KXV LQ WKH GD\V RI VDLOLQJ VKLSV 7REDJR RFFXSLHG D YHU\ VWUDWHJLF SRVLWLRQ UHODWLYH WR WKH UHVW RI WKH &DULEEHDQ $V WKH HFRQRPLF LPSRUWDQFH RI WKH &DULEEHDQ LQFUHDVHG ZLWK WKH UHDOL]DWLRQ RI VXJDU DV D FDVK FURS VR WRR GLG 7REDJRnV VWUDWHJLF LPSRUWDQFH &RQVHTXHQWO\ QR (XURSHDQ SRZHU FRXOG DIIRUG WR KDYH 7REDJR FRORQL]HG E\ DQRWKHU 7KH VWUDWHJLF LPSRUWDQFH RI 7REDJR ODVWHG WKURXJKRXW WKH DJH RI WKH VDLOLQJ VKLS $V ODWH DV WKH EHJLQQLQJ RI WKH QLQHWHHQWK FHQWXU\ WKH ULJKWV WR 7REDJR ZHUH VWLOO FRQWHVWHG E\ WKH )UHQFK EHFDXVH RI LWV FRYHWHG VWUDWHJLF ORFDWLRQ ,QGHHG )UHQFK PDSV RI 7REDJR PDGH GXULQJ WKH V DQG WKH URDG V\VWHP DORQJ WKH UXJJHG ZLQGZDUG FRDVW WKDW WKH\ FRQVWUXFWHG GXULQJ WKHLU RFFXSDWLRQ RI WKDW SHULRG LQGLFDWH WKHLU SUHRFFXSDWLRQ ZLWK 0DQ Rn :DU %D\ DW &KDUORWWHYLOOH 7KH\ HQYLVLRQHG WKLV DV D SRVVLEOH QDYDO GHSRW IURP ZKLFK WR WKUHDWHQ WKH UHVW RI WKH &DULEEHDQ DQG LWV SRWHQWLDO GUHZ WKHP EDFN WR WKH LVODQG DV ODWH DV 7KH %ULWLVK WRR IUHTXHQWO\ LQFOXGHG GHWDLOV RI 0DQ Rn :DU %D\ RQ WKHLU PDSV HJ -HIIHU\V f LQGLFDWLQJ WKDW WKH\ DOVR UHFRJQL]HG WKLV VWUDWHJLF SRWHQWLDO

PAGE 57

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f DV ZHOO DV GHFUHDVLQJ VRLO IHUWLOLW\ RQ ORQJHVWDEOLVKHG SODQWDWLRQV FDXVHG E\ UHSHDWHG PRQRFURSSLQJ DQG WKH FRUUHVSRQGLQJ GHFOLQH LQ VRLO QXWULHQWV 5DJDW] f 1HYHUWKHOHVV LW WRRN WLPH IRU VXJDU SURGXFWLRQ WR VSUHDG WR DOO RI WKH ODQG VXLWDEOH IRU FDQH FXOWLYDWLRQ SDUWLFXODUO\ RQ WKH ODUJHU LVODQGV RI -DPDLFD DQG )UHQFK +LVSDQLROD +DLWLf DQG WR D OHVVHU H[WHQW 0DUWLQLTXH DQG *XDGDORXSH :KDWHYHU WKH FDXVH RI WKLV FRQWLQXRXV H[WHQVLRQ RI FDQH FXOWLYDWLRQ VXIILFLHQW XQRFFXSLHG ODQG ZDV DYDLODEOH RQ HVWDEOLVKHG LVODQGV XQWLO WKH PLGHLJKWHHQWK FHQWXU\ $QRWKHU IDFWRU FRQWULEXWLQJ WR WKH ODWH VHWWOHPHQW RI 7REDJR ZDV WKH LVODQGnV WRSRJUDSK\ $V QRWHG LQ &KDSWHU 7REDJR LV GRPLQDWHG E\ D PRXQWDLQRXV LQWHULRU 7KH VKHHU UXJJHGQHVV RI WKH WRSRJUDSK\ PDNH WKH PDLQ ULGJH URXJKO\ WZR WKLUGV RI WKH LVODQGnV WRWDO DUHD PDUJLQDO DW EHVW IRU

PAGE 58

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
PAGE 59

WR $OH[DQGHU 6WHYHQVRQ 1DUGLQ f 7KLV ODWHU EHFDPH NQRZQ DV +RSH (VWDWH 7KHUH LV VRPH FRQWHQWLRQ DERXW WKH SULPDF\ RI WKLV VDOH :RRGFRFN f VD\V WKDW WKH ILUVW ORW VROG ORW LQ 6W 'DYLGnV 3DULVK ZDV VROG WR -DPHV 6LPSVRQ RQ 0DUFK ZKLOH $UFKLEDOG f FRQWHQGV WKDW 6LPSVRQ ERXJKW WKLV ORW DW WKH ILUVW ODQG VDOH LQ 0D\ RI

PAGE 60

&+$37(5 68&&(66)8/ &2/21,=$7,21 ,QWURGXFWLRQ 7REDJR LV RQH RI WKH VRFDOOHG FHGHG LVODQGV DFTXLUHG E\ WKH %ULWLVK DV D UHVXOW RI WKH 7UHDW\ RI 3DULV LQ 5DJDW] fr :LWK WKH DFTXLVLWLRQ RI WKH FHGHG LVODQGV WKH %ULWLVK SDUOLDPHQW LPSRVHG WZR FRQGLWLRQV RQ VHWWOHPHQW )LUVW LQ UHVSRQVH WR FRQFHUQV WKDW PRVW RI WKH QHZ ODQGV ZRXOG UHPDLQ LGOH LQ WKH KDQGV RI VSHFXODWRUV SDUOLDPHQW UHTXLUHG VWHDG\ DQG ODUJH SD\PHQWV RQ SXUFKDVHG ODQG SD\PHQWV WKDW FRXOG RQO\ EH PHW E\ LPPHGLDWHO\ SXWWLQJ WKH ODQG LQWR SURGXFWLRQ /DQGVfVKRXOG EH SXW XS WR VDOH DW D SULFH QRW OHVV WKDQ ILYH SRXQGV SHU DFUH RI WKH ODQGV WKDW ZHUH FOHDUHG DQG LI WKH ODQGV ZHUH XQFOHDUHG DW D SULFH QR OHVV WKDQ RQH SRXQG VWHUOLQJ SHU DFUHWKH SXUFKDVHUfVKRXOG WKHUHXSRQ SD\ GRZQ WZHQW\ SHU FHQW RI WKH ZKROH SXUFKDVH PRQH\ DQG VL[ SHQFH VWHUOLQJ IRU HYHU\ DFUH RI ZKLFK WKH ORWV VKRXOG FRQVLVW IRU WKH H[SHQVH RI VXUYH\LQJ WKH VDPH 2fYHU DQG DERYH WKH WZHQW\ SRXQGV SHU FHQW RI WKH ZKROH SXUFKDVH PRQH\ KH VKRXOG SD\ GRZQ WHQ SRXQGV SHU FHQW RI WKH ZKROH SXUFKDVH PRQH\ ZLWKLQ RQH \HDU IURP WKH GDWH RI VXFK %LOO RI 6DOH WHQ SRXQGV SHU FHQW PRUH ZLWKLQ WKH VHFRQG \HDU DIWHU WKH GDWH RI VXFK %LOO RI 6DOH DQG WZHQW\ SHU FHQW ZLWKLQ HYHU\ VXFFHVVLYH \HDU XQWLO WKH ZKROH ZDV SDLG &2 LQ 1DUGLQ f 7KH RWKHUV DUH 'RPLQLFD 6W 9LQFHQW *UHQDGD DQG WKH *UHQDGLQHV

PAGE 61

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f 3DUOLDPHQWnV JRDO ZDV WR JXDUDQWHH VWHDGLO\ LQFUHDVLQJ LPSRUWV LQWR WKH PRWKHU FRXQWU\ ZLWKRXW VXUUHQGHULQJ DGGLWLRQDO SROLWLFDO SRZHU WR WKH SODQWHU FODVV 7KH HIIHFW ZDV WR LPSRVH WZLQ FRQVWUDLQWV RQ 7REDJRQLDQ SODQWHUV SRWHQWLDOO\ LQVXIILFLHQW ODQG FRXSOHG ZLWK D SD\PHQW VFKHGXOH WKDW FRXOG SHUKDSV SURYH LQVXUPRXQWDEOH 5DJDW] f /DQG 6DOHV ,Q DOO VHYHQ ODQG VDOHV ZHUH KHOG RQ WKH LVODQG 7DEOH f 7KH GLVWULEXWLRQ RI WKH DFUHDJH LQYROYHG LQ WKHVH VDOHV VD\V PXFK DERXW WKH SHUFHSWLRQV WKH (XURSHDQ FRORQLVWV KDG RI WKH YDULRXV SDUWV RI WKH LVODQG 7DEOH f 7KH ILUVW ORWV VROG ZHUH SULPDULO\ LQ 6W *HRUJHnV 3DULVK VHH )LJXUH f 6W *HRUJHnV 3DULVK ZDV LQLWLDOO\ HQYLVLRQHG DV WKH PRVW DFFHSWDEOH VLWH IRU D FDSLWDO WRZQ WR EH FDOOHG *HRUJHWRZQ E\ YLUWXH RI LWV SUR[LPLW\ %DUEDGRV %D\ 7KH PRVW DWWUDFWLYH VHOOLQJ SRLQW IRU %DUEDGRV %D\ DV WKH

PAGE 62

7DEOH /DQG VDOHV RQ 7REDJR &RQYHQLQJ 'DWH $FUHV 6ROG 0D\ 0D\ $SULO -XQH 0D\ 727$/ $IWHU $UFKLEDOG ORFDWLRQ RI *HRUJHWRZQ ZDV LWV FHQWUDOLW\ UHODWLYH WR WKH UHVW RI WKH LVODQG %DUEDGRV %D\ KDG WKH DGYDQWDJH RI D FHQWUDO VLWXDWLRQ DQG WHQGHUHG HTXDO IDFLOLWLHV IRU UHVRUW RQ EXVLQHVV WR WKH SHRSOH RI 6W 0DU\nV 6W 3DXOnV DQG 6W -RKQnV WKH QRUWKHDVWHUQ SRUWLRQ RI WKH LVODQGf RU WR 6W $QGUHZnV 6W 3DWULFNnV DQG 6W 'DYLGnV WKH VRXWKZHVWHUQ SRUWLRQ RI WKH LVODQGf
PAGE 63

7DEOH 'LVWULEXWLRQ RI ODQG JUDQWV 3DULVK
PAGE 64

WKH LVODQGnV &KLHI 6XUYH\RU SRVVHVVHG D GHJUHH RI IDPLOLDULW\ ZLWK WKH LVODQG EH\RQG WKDW RI WKH RWKHU SRWHQWLDO EX\HUV ,W DSSHDUV WKDW WKH\ UHFRJQL]HG WKLV DGYDQWDJH IROORZLQJ KLV OHDG LQ WKLV VHFRQG URXQG RI ODQG VDOHV $UFKLEDOG f %\ WKH WKLUG VDOH WKH EX\HUV KDG IXUWKHU UHILQHG WKHLU HVWLPDWHV RI WKH UHODWLYH PHULWV RI WKH YDULRXV SDULVKHV ,Q D WUDGHRII WKDW PXVW KDYH UHSUHVHQWHG D GLIILFXOW EXVLQHVV GHFLVLRQ RQ WKH SDUW RI WKH SODQWHUV SXUFKDVHV GXULQJ WKH WKLUG VDOH ZHUH FRQILQHG SULPDULO\ WR WKH QHDUO\ IODW SDULVKHV RI 6W $QGUHZnV DQG 6W 3DWULFNnV 7KH SODQWHUV ZHUH IDFHG ZLWK WZR FKRLFHV 2Q WKH RQH KDQG 6W $QGUHZnV DQG SDUWLFXODUO\ 6W 3DWULFNnV 3DULVKHV RIIHU IHZ OLPLWDWLRQV WR WUDQVSRUW *HWWLQJ WKH FURS IURP ILHOG WR IDFWRU\ DQG ODWHU JHWWLQJ WKH ILQLVKHG SURGXFWVf§PXVFRYDGR VXJDU PRODVVHV DQG UXPf§IURP WKH IDFWRU\ WR VXLWDEOH SRLQWV IRU VKLSPHQW WR RYHUVHDV PDUNHWV ZDV JUHDWO\ IDFLOLWDWHG LQ WKH IODWWHU SDULVKHV 2Q WKH RWKHU KDQG WKH IODW SDULVKHV VXIIHUHG IURP D GHFLGHG ODFN RI VXUIDFH ZDWHU ,Q JHQHUDO WKH VWUHDPV DQG ULYHUV RI 6W 3DWULFNnV DQG 6W $QGUHZnV ZHUH WRR VPDOO DQG WRR JHQWO\ VORSHG WR RSHUDWH ZDWHU SRZHUHG VXJDU PLOOV 7KH ORW FKRLFHV RI WKH WKLUG ODQG VDOH LQGLFDWH WKDW HDUO\ 7REDJR SODQWHUV RSWHG IRU HDVH RI WUDQVSRUW RYHU WKH DGYDQWDJHV RI D ZDWHUEDVHG SRZHU VXSSO\ 7KLV LV D SDUWLFXODUO\ WHOOLQJ SRLQW LQ WKDW RfQ WKH FRPSXWDWLRQ RI RXU PRVW LQWHOOLJHQW SODQWHUV D nZDWHU PLOOn DGGV WR WKH YDOXH RI WKH

PAGE 65

3ODQWDWLRQ RQH ILIWK DQG RQH ILIWK PRUH LQFRPH IURP WKH SURFHHGV RI WKH FURS QHYHU EHLQJ DW D VWDQG RU HYHQ UHWDUGHG IURP WKH 1HJURHV QHYHU EHLQJ HPSOR\HG LQ FXWWLQJ FDQHV ZKLFK HYHQWXDOO\ WKHUH PD\ EH QR ZLQG WR JULQG DQG WKH ODERXUV EH ORVW DV ZHOO DV FDQHV IURP FDQHV EHLQJ WDNHQ RII LQ WKHLU SULPH DQG DW WKH PRVW VHDVRQDEOH DQG FRQYHQLHQW PRPHQW ZLWK D FHUWDLQW\ RI LPPHGLDWH PDQXIDFWXUH DQG JHQHUDOO\ IURP D VDYLQJ RI SURGXFH WLPH DQG ODERXU
PAGE 66

VRXWKZHVWHUQ HQG RI WKH LVODQG LW VHHPV OLNHO\ WKDW RWKHU IDFWRUV DFFRXQWHG IRU WKLV VKLIW %\ PRVW RI WKH FRDVWDO ODQGV LQ PRUH SUR[LPDWH UHODWLRQ WR 6FDUERURXJK KDG EHHQ FODLPHG 5DWKHU WKDQ FKRRVLQJ LQODQG VLWHV ZKHUH RYHUODQG WUDQVSRUW ZDV GLIILFXOW EX\HUV VHOHFWHG FRDVWDO ODQGV ZKHUH VHD WUDQVSRUW ZDV SRVVLEOH 7KLV SDWWHUQ RI SXUFKDVLQJ ODQG LQ 6W -RKQnV 3DULVK FRQWLQXHG WKURXJK WKH ILIWK URXQG RI ODQG VDOHV LQ %\ WKH VL[WK ODQG RIIHULQJ LQ VDOHV ZHUH PRUH EURDGO\ GLVWULEXWHG FRQFHQWUDWLQJ LQ 6W 'DYLGnV 6W 3DXOnV 6W -RKQnV DQG 6W 0DU\nV SDULVKHV 7KHVH PD\ KDYH EHHQ WKH PRUH LQODQG VLWHV 7KH VHYHQWK DQG ILQDO ODQG VDOH ZDV KHOG LQ 6DOHV ZHUH FRQFHQWUDWHG LQ WKH HDVWHUQ WKUHH SDULVKHV RI 6W -RKQnV 6W 0DU\nV DQG 6W 3DXOnV SDULVKHV 7DEOH GRFXPHQWV WKH SULFHV EURXJKW DW WKH ODQG VDOHV E\ 3DULVK $OWKRXJK D EULHI JODQFH DW WKH WDEOH LQGLFDWHV WKDW WKH PRVW FRVWO\ ODQGV ZHUH ORFDWHG LQ 6W -RKQnV DQG 6W 3DXOnV SDULVKHV WKLV GRHV QRW QHFHVVDULO\ UHIOHFW DFFXUDWHO\ WKH SHUFHLYHG YDOXH RI ODQGV 5DWKHU WKH WDEOH UHIOHFWV WKH IDFW WKDW WKH ODWHU D ORW ZDV VROG WKH EHWWHU SULFH LW IHWFKHG 7DEOH VKRZLQJ FRVWV SHU DFUH RQ D \HDUE\\HDU EDVLV FRQILUPV WKLV REVHUYDWLRQ ,QGHHG
PAGE 67

7DEOH 3HU DFUH FRVW RI ODQG JUDQWV E\ SDULVK 3DULVK $YJ FRVW SHU DFUH eVf 6W *HRUJH 6W 'DYLG 6W $QGUHZ 6W 3DWULFN 6W 0DU\ 6W 3DXO 6W -RKQ $IWHU
PAGE 68

DFUHV 7DEOH f DFFRXQW IRU QHDUO\ SHUFHQW RI WKH LVODQGnV WRWDO DFUHDJH 7KH UHPDLQLQJ DFUHDJH ZDV WR EH OHIW LQ ZRRGV IRU WKH SUHVHUYDWLRQ RI WKH UDLQV 7DEOH ,QWHQGHG GLVSRVLWLRQ RI ODQGV 3DULVK $FUHV JUDQWHG IRU (VWDWHV $FUHV UHVHUYHG IRU 3RRU 6HWWOHUV 7RWDO DFUHV JUDQWHG $FUHV UHVHUYHG IRU &URZQ 6W $QGUHZnV 6W *HRUJHnV 6W 0DU\nV 6W 3DXOnV 6W -RKQnV 6W 'DYLGnV 6W 3DWULFNnV 727$/
PAGE 69

ODJ EHKLQG %\ 6W 3DWULFNnV DQG 6W 'DYLGnV SDULVKHV ZHUH DOVR QHDUO\ FRPSOHWHO\ FOHDUHG 7DEOH &OHDUHG ODQGV
PAGE 70

JRYHUQPHQW ZKLFK LQ WKH 0HUFDQWLOLVW SHULRG OHYLHG KLJK WD[HV RQ &DULEEHDQ SURGXFWV RWKHU WKDQ VXJDU DQG UXP 1DUGLQ f ,Q WKH ILUVW VKLSPHQW RI VXJDU OHIW 7REDJR IRU (QJODQG $UFKLEDOG f XVKHULQJ LQ D SHULRG RI SKHQRPHQDO JURZWK IRU WKH LVODQGnV VXJDU LQGXVWU\ 7KH PDWXUDWLRQ RI WKLV LQGXVWU\ ZDV VR UDSLG WKDW LQ 7REDJR WKRXJK D UHODWLYHO\ VPDOO LVODQG H[SRUWHG PRUH VXJDU WRQVf WKDQ DQ\ RWKHU %ULWLVK &DULEEHDQ FRORQ\ 7KH QXPEHU RI VXJDU PLOOV RQ WKH LVODQG GXULQJ YDULRXV \HDUV JLYHV D SUHOLPLQDU\ LGHD RI WKH UDSLG GHYHORSPHQW RI WKH VXJDU LQGXVWU\ 7DEOH f 7DEOH 6XJDU PLOOV
PAGE 71

1DUGLQ f $OWKRXJK QRW LQ ODUJH TXDQWLWLHV FRWWRQ ZDV SURGXFHG E\ OEVf LQGLJR E\ OEVf DQG FRIIHH E\ OEVf @f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
PAGE 72

7DEOH 6XJDU H[SRUWV
PAGE 73

DIWHU WKH DQWV KDG ODUJHO\ GHVWUR\HG WKH FDQH FURS 7DEOH f D WRWDO RI OEV RI FRWWRQ ZHUH KDUYHVWHG
PAGE 74

EDFN FURS KRZHYHU 5HFRUGV LQGLFDWH WKDW LQGLJR JLQJHU G\HZRRG DQG WXPHULF ZHUH DOVR SURGXFHG GXULQJ WKLV ILUVW SHULRG RI GHFOLQLQJ VXJDU SURGXFWLRQ EHWZHHQ DQG 1DUGLQ
PAGE 75

7DEOH ,VODQG SRSXODWLRQ E\ SDULVK 3DULVK : % : % : % : % : % : % : % 6W $QGUHZ 6W 'DYLG 6W *HRUJH 6W -RKQ 6W 0DU\ 6W 3DWULFN 6W 3DXO 727$/ 8O 8

PAGE 76

ZKLWH SRSXODWLRQ DV ZHOO 7UHQGV EHFRPH PRUH DSSDUHQW WKURXJK H[DPLQDWLRQ RI 7DEOH ZKLFK VKRZV WKDW E\ SDULW\ LQ SRSXODWLRQ EHWZHHQ SDULVKHV LQFOXGLQJ ERWK ZKLWH DQG EODFN LQKDELWDQWV ZDV EHLQJ DSSURDFKHG 7KH UHFRYHU\ RI WKH VXJDU LQGXVWU\ IURP WKH DQW LQIHVWDWLRQ ZDV GUDPDWLFDOO\ VORZHG E\ WKH ILUVW RI WZR )UHQFK RFFXSDWLRQV RI WKH LVODQG )URP WR SROLWLFDO FRQWURO RI WKH LVODQG ZDV LQ WKH KDQGV RI WKH )UHQFK DOWKRXJK 7REDJRnV SRSXODWLRQ DQG FXOWXUH UHPDLQHG HVVHQWLDOO\ %ULWLVK :RRGFRFN f 7KLV ZDV D SHULRG RI GLIILFXOW\ IRU WKH SODQWHUV :LWK WKH )UHQFK LQ FRQWURO ORDQV DQG RWKHU IXQGV ZHUH QRW IRUWKFRPLQJ IURP WKH VRXUFHV WUDGLWLRQDOO\ DYDLODEOH WR WKH %ULWLVK SODQWHUV $V D UHVXOW WKH UHSDLUV WR WKH VXJDU ZRUNV QHFHVVLWDWHG E\ WKH IRUFHG VKXWGRZQ GXULQJ WKH DQW LQIHVWDWLRQ FRXOG QRW EH PDGH
PAGE 77

7DEOH 3RSXODWLRQ VWDWLVWLFV 3$5,6+ $UHD NPf 'HQVLW\ SHU NP :KLWHVf 'HQVLW\ SHU NP %ODFNVf 5DWLR RI %ODFNV WR :KLWHV :KLWH *URZWK ,QGH[ VLQFH f %ODFN *URZWK ,QGH[ VLQFH f 6W $QGUHZnV b b 6W 'DYLGnV b b 6W *HRUJHnV b b 6W -RKQnV b b 6W 0DU\nV b b 6W 3DWULFNnV b b 6W 3DXOnV b b

PAGE 78

VHOISURWHFWLRQ
PAGE 79

H[SRUWHG WR %ULWDLQ 5DJDW] f 7DEOH VKRZV WKH SULQFLSDO SURGXFWV JURZQ RQ HVWDWHV GXULQJ WKLV SHULRG ZKLOH 7DEOH VKRZV ODQGXVH SDWWHUQV 7KHVH GDWD LQGLFDWH WKDW ZKLOH FRWWRQ SURGXFWLRQ ZDV VSUHDG UHODWLYHO\ HYHQO\ DERXW WKH LVODQG VXJDU ZDV SURGXFHG SULPDULO\ LQ 6W 3DWULFNnV DQG 6W 'DYLGnV 3DULVKHV ,QGLJR RQ WKH RWKHU KDQG ZDV SURGXFHG DOPRVW HQWLUHO\ LQ 6W 3DXOnV 3DULVK RQ D VLQJOH HVWDWH )LQDOO\ WKH GLIILFXOWLHV HQJHQGHUHG E\ )UHQFK UXOH ZHUH FRPSRXQGHG E\ D PDMRU KXUULFDQH ZKLFK VWUXFN 7REDJR LQ $XJXVW RI 7DQQHKLOO f :KLOH WKH GHVWUXFWLRQ FDXVHG E\ WKLV HYHQW LV QRW ZHOO GRFXPHQWHG LW GLG GHVWUR\ YHVVHOV DQG WKH HVWDWH KRXVH DQG VXJDU ZRUNV DW 5LVHODQG (VWDWH :RRGFRFN f $ PRUH DFFXUDWH SLFWXUH RI WKH GHVWUXFWLRQ LV JLYHQ E\ DQ HOGHUO\ SHUVRQ WR ZKRP :RRGFRFN VSRNH LQ SHUVRQ VRPH VHYHQW\ \HDUV DIWHU WKH IDFW 6KH GHVFULEHG WKH HYHQW DV EHLQJ RI WKH VDPH PDJQLWXGH DV WKH KXUULFDQH RI GLVFXVVHG EHORZf :RRGFRFN f 7UHQGV ZLWK SRVLWLYH HFRQRPLF FRQVHTXHQFHV ZHUH DSSDUHQW GXULQJ WKLV SHULRG DV ZHOO ,Q SDUWLFXODU WKHUH ZDV D GHFUHDVHG UHOLDQFH RQ WUDFWLRQ DQLPDOV DV VXJDU PLOO SRZHU VRXUFHV 7DEOH VKRZV D VLJQLILFDQW GHFUHDVH LQ WKH QXPEHU RI FDWWOH PLOOV RQ WKH LVODQG ZKHQ FRPSDUHG WR ZKLOH DOVR VKRZLQJ DQ LQFUHDVH LQ ZLQG DQG ZDWHU SRZHUHG PLOOV VHH 7DEOH f 6LQFH WKHUH ZDV DOVR D

PAGE 80

7DEOH (VWDWHV SURGXFLQJ VXJDU\ FRWWRQ DQG LQGLJR E\ SDULVK (VWDWHV LQ 6W $QGUHZ 6W *HRUJH 6W 0DU\ 6W 3DXO 6W -RKQ 6W 'DYLG 6W 3DWULFN 727$/ 6XJDU &RWWRQ ,QGLJR $IWHU
PAGE 81

7DEOH 6XJDU PLOOV 3DULVK :DWHU $QLPDO :LQG 727$/ 6W *HRUJH 6W 0DU\ 6W 3DXO 6W -RKQ 6W 3DWULFN 6W 'DYLG 6W $QGUHZ 727$/ $IWHU
PAGE 82

7DEOH ,VODQG SRSXODWLRQ E\ SDULVK 3DULVK :KLWHV )UHH &RORUHG 6ODYHV 6W *HRUJH 6W 0DU\ 6W 3DXO 6W -RKQ 6W 3DWULFN 6W 'DYLG 6W $QGUHZ 727$/ $IWHU
PAGE 83

ZRXOG H[SHFW WKH\ ZHUH SULPDULO\ FRQFHQWUDWHG LQ 6FDUERURXJK )HZ FKRVH WR ORFDWH LQ 3O\PRXWK LQGLFDWLQJ LWV GHFUHDVLQJ LPSRUWDQFH DV D VLJQLILFDQW HFRQRPLF EDVH RI RSHUDWLRQV ,Q $SULO RI 7REDJR ZDV UHWDNHQ E\ WKH %ULWLVK E\ IRUFH RI DUPV 6XJDU VRRQ UHWXUQHG WR LWV SUHHPLQHQW SRVLWLRQ DV WKH VWDSOH H[SRUW 7DEOH f $W WKH VDPH WLPH FRWWRQ H[SRUWV GUDVWLFDOO\ GHFOLQHG DQG FRWWRQ SURGXFWLRQ ZDV QHDUO\ SKDVHG RXW E\ *LYHQ WKH VXFFHVV WKDW 7REDJRQLDQ SODQWHUV KDG ZLWK FRWWRQ DQG WKH KLJK HVWHHP ZLWK ZKLFK LW ZDV KHOG E\ WKH SURSULHWRUV RI 0DQFKHVWHUnV FRWWRQ PLOOV /DYD\VVH LQ 1DUGLQ f LW LV GLIILFXOW WR XQGHUVWDQG ZK\ FRWWRQ ZDV VR UHDGLO\ DQG UDSLGO\ DEDQGRQHG 7KH PDMRU FRQWULEXWLQJ IDFWRU ZDV WKH LQFUHDVLQJ DYDLODELOLW\ RI FRWWRQ IURP RWKHU VRXUFHV SDUWLFXODUO\ WKH 8QLWHG 6WDWHV ZKLFK SDLG VLJQLILFDQWO\ ORZHU GXWLHV RQ FRWWRQ DW WKH FORVH RI WKH HLJKWHHQWK FHQWXU\ WKDQ GLG FRPSHWLQJ %ULWLVK &DULEEHDQ FRORQLHV &DUULQJWRQ 5DJDW] f ,Q DGGLWLRQ FRWWRQ DQG VXJDU ZHUH KDUYHVWHG LQ WKH VDPH PRQWKV 7KXV FRPSHWLQJ WLPHWDEOHV PDGH WKHP PXWXDOO\ H[FOXVLYH 7XUQEXOO LQ 1DUGLQ f 1R GDWD LV DYDLODEOH IRU WKH \HDUV EHWZHHQ DQG

PAGE 84

7DEOH 9ROXPH RI H[SRUWV 6XJDU &RWWRQ
PAGE 85

7DEOH ,QFRPH RI DQ LGHDOL]HG HVWDWH SURGXFLQJ +KGV WRQVf RI VXJDU ZLWK VODYHV
PAGE 86

NLQGV RI SURILWV DFKLHYDEOH E\ 7REDJRQLDQ VXJDU SODQWHUV GXULQJ WKLV SHULRG (YHQ GXULQJ WLPHV RI SHDN VXJDU SURGXFWLRQ FRWWRQ ZDV QHYHU FRPSOHWHO\ DEDQGRQHG VHH 7DEOH f 'HVSLWH GRFXPHQWDU\ HPSKDVLV RQ VXJDU SURGXFWLRQ 7REDJR FDQQRW EH FKDUDFWHUL]HG E\ PRQRFURSSLQJ

PAGE 87

&+$37(5 '(&/,1,1* )25781(6 7KURXJKRXW WKH ILUVW GHFDGH RI WKH QLQHWHHQWK FHQWXU\ VXJDU SULFHV WXPEOHG 6HYHUDO IDFWRUV FRPELQHG WR GULYH WKH SULFH RI VXJDU GRZQ XQWLO E\ WKH SHU XQLW FRVW RI SURGXFWLRQ ZDV JUHDWHU WKDQ WKH PDUNHW SULFH 5DJDW] f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n PDUNHW UDSLGO\ FKDQJHG LQWR D EX\HUVn PDUNHW KXUWLQJ SODQWHUV DFURVV WKH ERDUG 7DEOH VKRZV WKH HIIHFW RI WKLV GHFOLQH RQ WKH 7REDJRQLDQ SODQWHUV E\ FRPSDUH ZLWK 7DEOH f 2I SDUWLFXODU QRWH WKH QHW SURILW GHULYHG IURP RQH KRJVKHDG RI VXJDU GURSSHG IURP D KLJK RI e LQ WR D ORZ RI e LQ

PAGE 88

7DEOH ,QFRPH RI DQ LGHDOL]HG HVWDWH SURGXFLQJ +KGV WRQVf RI VXJDU ZLWK VODYHV
PAGE 89

D VWDJJHULQJ SHUFHQW GHFOLQH %\ RQO\ DFUHV UHPDLQHG LQ VXJDU FDQH RQ 7REDJR
PAGE 90

7DEOH FQWGf (VWDWH 3DULVK ,Q FXOWLYDWLRQ %XFFRR 6W 3DWULFNnV ;; ;; ;; ;; %XUOHLJK &DVWOH 6W $QGUHZnV ;; ;; ;; ;; &DOGHU +DOO 6W $QGUHZnV ;; ;; ;; ;; &DPSEHOOWRQ 6W -RKQnV ;; &DUGLII 6W 0DU\nV ;; &DUQEHH 6W $QGUHZnV ;; ;; ;; ;; &DVWDUD 6W -RKQnV ;; ;; ;; ;; &LQQDPRQ +LOO 6W *HRUJHnV ;; ;; &KDUORWWHYLOOH 6W -RKQnV ;; ;; ;; ;; &RQFRUGLD 6W *HRUJHnV ;; ;; ;; ;; &RXUODQG 6W 'DYLGnV ;; ;; ;; ;; &RYH 6W 3DWULFNnV ;; ;; &UDGOH\ 6W *HRUJHnV ;; ;; ;; ;; &UDLJ +DOO 6W 'DYLGnV ;; ;; ;; ;; &URPVWDQH 6W 3DWULFNnV ;; &XOORGHQ 6W 'DYLGnV ;; ;; ;; ;; 'HODIRUG 6W 3DXOnV ;; ;; 'XQYHJDQ 6W 'DYLGnV ;; ;; ;; ;; )UDQNO\QV 6W 'DYLGnV ;; ;; ;; ;; )ULHQGVILHOG 6W *HRUJHnV ;; ;; ;; ;; )ULHQGVKLS 6W *HRUJHnV ;; )ULHQGVKLS 6W 3DWULFNnV ;; ;; ;; *ODPRUJDQ 6W 0DU\nV ;; ;; ;; ;; *ROGHQ *URYH 6W 3DWULFNnV ;; ;; ;; *ROGHQ /DQH 6W 'DYLGnV ;; ;; ;; ;; *ROGVERURXJK 6W 0DU\nV ;; ;; ;; ;; *RRGZRRG 6W 0DU\nV ;; *UDIWRQ 6W 3DWULFNnV ;; ;; ;; ;; *UDQJH 6W 3DWULFNnV ;; ;; ;; ;; *UHHQKLOO 6W *HRUJHnV ;; ;; ;; ;; +DPSGHQ 6W $QGUHZnV ;; ;; ;;

PAGE 91

7DEOH FQWGf (VWDWH 3DULVK ,Q FXOWLYDWLRQ +HUPLWDJH 6W -RKQnV ;; ;; ;; ;; +LJKODQGV 6W 'DYLGnV ;; ;; ;; +RSH 6W *HRUJHnV ;; ;; ;; ;; ,QGLDQ :DON 6W 'DYLGnV ;; ;; ;; ;; ,QYHUD 6W 3DXOnV ;; ;; ;; ,QYHUDUGHQ 6W 0DU\nV ;; .HQGDO 3ODFH 6W 3DXOnV ;; ;; ;; ;; .LOJZ\Q 6W 3DWULFNnV ;; ;; ;; ;; .LQJnV %D\ 6W 3DXOnV ;; ;; ;; ;; /DPEHDX 6W $QGUHZnV ;; ;; ;; ;; /HV &RWHDX[ 6W 'DYLGnV ;; ;; ;; ;; /RZHU 4XDUWHU 6W 'DYLGnV ;; ;; ;; ;; /RZODQGV 6W $QGUHZnV ;; ;; ;; ;; /XF\ 9DOH 6W -RKQnV ;; ;; /XUH 6W 0DU\nV ;; ;; ;; ;; 0DU\nV +LOO 6W 'DYLGnV ;; ;; ;; ;; 0HUFKLVWRQ 6W 3DXOnV ;; ;; ;; 0RQWSHOLHU 6W $QGUHZnV ;; ;; ;; ;; 0W 'LOORQ 6W 'DYLGnV ;; ;; ;; ;; 0W ,UYLQH 6W 3DWULFNnV ;; ;; ;; ;; 0W 6W *HRUJH 6W *HRUJHnV ;; ;; ;; ;; 1HZ *UDQJH 6W 3DWULFNnV ;; ;; ;; ;; 1XWPHJ *URYH 6W *HRUJHnV ;; ;; ;; ;; 2UDQJH +LOO 6W 'DYLGnV ;; ;; ;; 2UDQJH 9DOOH\ 6W 3DWULFNnV ;; ;; ;; 3HPEURNH 6W 0DU\nV ;; ;; ;; ;; 3URVSHFW 6W 3DWULFNnV ;; ;; ;; ;; 3URYLGHQFH 6W 'DYLGnV ;; ;; ;; ;; 5LFKPRQG 6W 0DU\nV ;; ;; ;; 5LVHODQG 6W $QGUHZnV ;; ;; ;; ;; 5R[ERURXJK 6W 3DXOnV ;; ;; ;; ;;

PAGE 92

7DEOH FQWGf (VWDWH 3DULVK ,Q FXOWLYDWLRQ 5XQQHPHGH 6W 'DYLGnV ;; ;; ;; 6KHUYDQ 6W 3DWULFNnV ;; ;; ;; ;; 6KHUZRRG 3DUN 6W $QGUHZnV ;; ;; ;; ;; 6PLWKILHOG 8QNQRZQ ;; 6SH\VLGH 6W -RKQnV ;; ;; ;; ;; 6SULQJ *DUGHQ 6W $QGUHZnV ;; ;; 6WXGOH\ 3DUN 6W *HRUJHnV ;; ;; ;; ;; 7HOHVFRSH 6W -RKQnV ;; ;; ;; 7URLV 5LYLHUHV 6W -RKQnV ;; 8QLW\ 6W 0DU\nV ;; ;; ;; :KLP 6W 'DYLGnV ;; ;; ;; :RRGODQGV 6W 'DYLGnV ;; ;; ;; 727$/ $IWHU 2WWOH\ :RRGFRFN DSSHQGL[
PAGE 93

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f )RUWXQDWHO\ IRU WKH 7REDJR SODQWHUV DQG XQIRUWXQDWHO\ IRU WKHLU VODYHV WKH LQVXUUHFWLRQ ZDV GLVFRYHUHG EHIRUH LW KDG HYHQ EHJXQ 7KLUW\ ULQJOHDGHUV ZHUH FDXJKW LQFDUFHUDWHG DQG VHQWHQFHG WR GHDWK $W WKH RUGHU RI *HQHUDO &DUPLFKDHO FRPPDQGHU RI WKH 7REDJR PLOLWDU\ JDUULVRQ RQO\ RQH VODYH ZDV DFWXDOO\ KXQJ KRZHYHU 7R JLYH WKH LPSUHVVLRQ RI D WKRURXJK UHSULVDO KLV ERG\ ZDV KRLVWHG XS WKH IODJ VWDII DW )RUW .LQJ *HRUJH WLPHV ZLWK $V GLVFXVVHG HDUOLHU &KDSWHU f WKUHH UHYROWV RFFXUUHG LQ DQG :KLOH LW LV OLNHO\ WKDW RWKHUV ZHUH SODQQHG GXULQJ WKH LQWHUYHQLQJ \HDUV DSSDUHQWO\ QRQH ZHQW EH\RQG WKH SODQQLQJ VWDJHV RU FDPH WR WKH DWWHQWLRQ RI WKH DXWKRULWLHV *HQRYHVH f KDV DUJXHG WKDW HDUO\ UHYROWV ZHUH UHVWRUDWLRQLVWf§GHVLJQHG WR VHFXUH IUHHGRP IURP VODYHU\ IRU WKH SDUWLFLSDQWV /DWHU UHYROWV DUH FKDUDFWHUL]H DV UHYROXWLRQDU\ DWWHPSWV WR RYHUWKURZ WKH V\VWHP RI VODYHU\ VHH DOVR *DVSDU f 7KH UHYROW RQ 7REDJR FHUWDLQO\ IDOOV LQWR WKLV ODWWHU FDWHJRU\

PAGE 94

D VLJQDO JXQ DW HDFK KRLVW %HOLHYLQJ WKDW DOO RI WKHLU OHDGHUV ZHUH GHDG WKH UHYROXWLRQDU\ WHQGHQFLHV RI WKH PDVV RI VODYHV ZHUH VKDWWHUHG ,Q E\ WKH 7UHDW\ RI $PLHQV 7REDJR DJDLQ UHYHUWHG WR )UHQFK FRQWURO RQO\ WR EH UHFDSWXUHG E\ WKH %ULWLVK LQ 2WWOH\ f )URP D FXOWXUDO SHUVSHFWLYH OLWWOH VLJQLILFDQFH FDQ EH DWWDFKHG WR WKLV HYHQW DV LW ZDV RI VXFK VKRUW GXUDWLRQ ,Q DGGLWLRQ GXULQJ WKH )UHQFK WHQXUH %ULWLVK ODZ DQG WKH ULJKWV RI 7REDJRQLDQV DFFRUGHG E\ WKDW ODZ ZHUH PDLQWDLQHG 7KH 7REDJR OHJLVODWXUH ZDV VR JUDWHIXO WKDW LW YRWHG D ERQXV RI e WR WKH )UHQFKDSSRLQWHG JRYHUQRU DERYH DQG EH\RQG KLV e VDODU\ WKH VDPH VDODU\ DV WKDW DIIRUGHG WR %ULWLVK JRYHUQRUV :RRGFRFN f 7KH VDPH FDQQRW EH VDLG RI WKH HFRQRPLF FLUFXPVWDQFHV RI WKH 7REDJRQLDQ SODQWHUV GXULQJ DQG LPPHGLDWHO\ IROORZLQJ WKH )UHQFK RFFXSDWLRQ 6HYHUDO IDFWRUV FRQWULEXWHG WR D GHFOLQLQJ HFRQRP\ )LUVW ZLWK WKH DGYHQW RI )UHQFK UXOH H[SRUWV WR %ULWDLQ RU WR DQ\ RWKHU FRXQWU\ EXW )UDQFH ZHUH LPPHGLDWHO\ EDQQHG E\ WKH QHZ JRYHUQPHQW 2WWOH\ f 7DEOH VKRZV D VKDUS GHFOLQH LQ VXJDU H[SRUWV LQ UHIOHFWLQJ WKH FRQVHTXHQFHV RI WKLV EDQ $OWKRXJK H[SRUWV URVH EDFN WR WKHLU FXVWRPDU\ OHYHO DIWHU WKH %ULWLVK &DUPLFKDHOnV PRYH ZDV LQWHUSUHWHG DV PDJQDQLPRXV DW WKH WLPH DQG KDV EHHQ FLWHG DV DQ H[DPSOH RI WKH JHQHUDOO\ JRRG UHODWLRQV ZKLFK H[LVWHG EHWZHHQ EODFNV DQG ZKLWHV RQ 7REDJR :RRGFRFN f $ PRUH F\QLFDO LQWHUSUHWHU PLJKW ZRQGHU ZKDW EHFDPH RI WKH UHYHQXHV IURP WKH VHOOLQJ RII LVODQG RI VODYHV

PAGE 95

7DEOH 6XJDU H[SRUWV LQJ@ FUHGLWRUV WR VXH DQG PRUWJDJHUV WR IRUHFORVH
PAGE 96

FRORQLHV LOOHJDO 7KLV ZDV D GHYDVWDWLQJ EORZ WR 7REDJRnV SODQWHU FODVV 8S XQWLO DEROLWLRQ SODQWHUV KDG EHHQ JXDUDQWHHG D FRQVWDQW VXSSO\ RI ODERU LQ WKH IRUP RI VWHDG\ VODYH LPSRUWDWLRQ ,Q WKH ODERU LQWHQVLYH HQYLURQPHQW RI D VXJDU SODQWDWLRQ VODYHV ZHUH WKRXJKW WR EH D QHFHVVLW\ 7KHLU ZRUN ZDV DUGXRXV DQG EHFDXVH RI WKH QDWXUH RI FDQH FXOWLYDWLRQ DQG VXJDU SURGXFWLRQ IRU PXFK RI WKH \HDU QHDUO\ FRQVWDQW 7KLV WRRN D KHDY\ WROO RQ WKH ODERU IRUFH WR VXFK DQ H[WHQW WKDW PRVW SODQWDWLRQ VODYH SRSXODWLRQV LQ WKH &DULEEHDQ ZHUH QRQUHSURGXFLQJ 7KDW LV WR VD\ WKH GHDWKUDWH H[FHHGHG WKH ELUWKUDWH VR WKDW WKH VODYH SRSXODWLRQ FRXOG QRW EH PDLQWDLQHG ZLWKRXW LPSRUWDWLRQ RI IUHVK VODYHV IURP D IRUHLJQ VRXUFH 7KH SODQWHUV SUREOHPV ZHUH DJJUDYDWHG E\ WKH :DU RI ZKLFK EURXJKW DERXW D GHFOLQH LQ DFFHVV WR IRUHLJQ SURGXFHG SURYLVLRQV 5DJDW] f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

PAGE 97

DFUHDJH RQ HVWDWHV ZDV JLYHQ RYHU WR SURYLVLRQV
PAGE 98

7DEOH &KDQJH LQ VODYH SRSXODWLRQ / 2FWREHU 3ROOV 6SHFLDO UHWXUQV RI LQ ODVW WKUHH \HDUV 3DULVK 0DOH )HPDOH &KLOG %LUWKV 'HDWKV 'HFUHDVH 6W $QGUHZnV 6W *HRUJHV 6W 0DU\nV 6W 3DXOnV 6W -RKQnV 6W 'DYLGr V 6W 3DWULFNnV $WWDFKHG 8QDWWDFKHG 727$/
PAGE 99

7DEOH 6XJDU H[SRUWV IURP 7REDJR DQG
PAGE 100

)LJXUH FQWGf
PAGE 101

)LJXUH FQWGf
PAGE 102

7DEOH 3HU GLHP SD\ VFDOH IRU DSSUHQWLFH ODERU 3RVLWLRQ 3D\ eVf +HDG GULYHU +HDG ERLOHUPDQ 0LOO ERDWVZDLQ 0LOO IHHGHU %DJDV KDXOHUV &DQH FDUULHUV %DJDV FDUULHUV )LUH PHQ 6WLOOHU ZRPHQ &DUW PHQ &DUW OHDGHUV %DJDV KDQGOHUV 6HFRQG ERLOHUV $IWHU &\ 0DQ\ LVODQGV H[SHULHQFHG ODERU SUREOHPV DVVRFLDWHG ZLWK DSSUHQWLFHVKLS $OWKRXJK FRQWHPSRUDU\ GRFXPHQWV VWDWH WKDW WKLV ZDV QRW JHQHUDOO\ WKH FDVH RQ 7REDJR &f H[FHSWLRQV GLG RFFXU 2Q $GHOSKL (VWDWH LQ 2FWREHU IRU H[DPSOH LQGLYLGXDOV ZHUH SXQLVKHG RQ RQH RFFDVLRQ IRU QRW FRPLQJ WR ZRUN ZKLOH RQ DQRWKHU RFFDVLRQ LQGLYLGXDOV ZHUH SXQLVKHG IRU QRW KDYLQJ GRQH HQRXJK ZRUN &f 7KHVH QXPEHUV DUH DOO WKH PRUH DVWRQLVKLQJ ZKHQ RQH FRQVLGHUV WKDW $GHOSKL (VWDWH HPSOR\HG RQO\ DSSUHQWLFHV 7KXV ZKLOH ODERU SUREOHPV ZHUH QRW ,W VKRXOG EH QRWHG WKDW WZR LQGLYLGXDOV RQH RI ZKRP ZDV UHVSRQVLEOH IRU WKHVH SXQLVKPHQWV KDG PRUH FRPSODLQWV DERXW WKHP EURXJKW WR WKH DWWHQWLRQ RI WKH *RYHUQRU GXULQJ WKLV SHULRG WKDQ DOO RWKHU HVWDWH PDQDJHUV FRPELQHG &f

PAGE 103

FRQVLGHUHG WR EH ZLGHVSUHDG E\ WKH 7REDJRQLDQ SODQWHUV LW DSSHDUV WKDW DW OHDVW VRPH DSSUHQWLFHV IHOW LW QHFHVVDU\ WR VWULNH IRU EHWWHU WUHDWPHQW 5DWKHU WKDQ ODERU SUREOHPV UHGXFWLRQV LQ 7REDJRnV VXJDU H[SRUWV GXULQJ WKH DSSUHQWLFHVKLS SHULRG ZHUH DWWULEXWHG E\ WKH SODQWHUV WR QDWXUDO DQG ORFDO FDXVHV 6SHFLILFDOO\ VHYHUDO SHULRGV RI GURXJKW FRPPHQFHG LQ QRW HQGLQJ XQWLO 1LGGULH f ,Q 6W 3DXOnV 3DULVK WKH FKDQJH LQ SURGXFWLRQ IURP WR DPRXQWHG WR DV PXFK DV D SHUFHQW GURS DW RQH HVWDWH ZKLOH WKH DYHUDJH GHFUHDVH ZDV DERXW SHUFHQW 7DEOH f ,W LV OLNHO\ WKDW WKH DSSUHQWLFHV ZHUH PRUH DGYHUVHO\ DIIHFWHG E\ WKH GURXJKW WKDQ ZHUH WKH SODQWHUV ,QGHHG WKH GURXJKW PD\ KDYH KHOSHG WKH SODQWHUV REWDLQ ODERU EHFDXVH SURGXFWLRQ LQ WKH SURYLVLRQ JURXQGV ZRXOG KDYH EHHQ PRUH GLIILFXOW DQG DSSUHQWLFHV ZRXOG KDYH KDG WR UHO\ PRUH RQ ZDJHV WR VHFXUH IRRG +DOO f 7KXV WKH SUHGLFWDELOLW\ RI ODERU SDUWLFXODUO\ GXULQJ WKH KDUYHVW ZRXOG KDYH EHHQ JUHDWO\ LQFUHDVHG (PDQFLSDWLRQ 2Q $XJXVW DOO IRUPHU VODYHV RQ 7REDJR ZHUH JLYHQ WKHLU IUHHGRP :KLOH D JUHDW GHDO RI WKRXJKW KDG EHHQ GHYRWHG WR WKH HIIHFWV WKLV HYHQW ZRXOG EULQJ DERXW OLWWOH DFWXDO SUHSDUDWLRQ KDG RFFXUUHG 7KH JUHDW IHDU ZDV WKDW PDQXPLWWHG VODYHV ZRXOG LPPHGLDWHO\ GHVHUW WKH SODQWDWLRQV

PAGE 104

7DEOH &KDQJH LQ VXJDU SURGXFWLRQ GXULQJ ILUVW \HDU RI DSSUHQWLFHVKLS 6W 3DXOnV 3DULVK (VWDWH 3HUFHQW FKDQJH %HOOH *DUGHQ 5LFKPRQG 6SH\VLGH 7URLV 5LYLHUHV .HQGDOO 5R[ERURXJK /XUH .LQJnV %D\ ,QYHUD %HWVH\nV +RSH 3HPEURNH *ODPRUJDQ 0HUFKLVWRQ *ROGVERURXJK 7HOHVFRSH +HUPLWDJH $9(5$*( $IWHU & WR SXUVXH D SHDVDQW OLYHOLKRRG SDUWLFXODUO\ GXULQJ KDUYHVW WLPH ZKHQ WKH ODERU UHTXLUHPHQWV RI VXJDU SURGXFWLRQ ZHUH DW WKHLU KLJKHVW *UHHQ f 2QH VROXWLRQ ZRXOG KDYH EHHQ WR GLYHUVLI\ 3LPHQWR ZDV SURGXFHG LQ DEXQGDQFH RQ 7REDJR DW WKH WLPH RI HPDQFLSDWLRQ ZKLOH WKH FLQQDPRQ DQG QXWPHJ LQGXVWULHV ZHUH UHYLYHG &f 8QIRUWXQDWHO\ E\ WKLV WLPH SURILWV IURP VXJDU ZHUH VR UHGXFHG DV WR YLUWXDOO\ SUHFOXGH H[SHULPHQWDWLRQ LQ DQ\ RWKHU FURSf§WKHUH ZDV QR VSDUH FDVK WR IDOO EDFN RQ VKRXOG H[SHULPHQWDWLRQ IDLO *RYHUQRU /LRQHO 6PLWK H[SUHVVHG WKH SUHYDLOLQJ RSLQLRQ ZKHQ KH VDLG QR RWKHU SXUVXLW PD\

PAGE 105

SURPLVH VXFK D SURILWDEOH UHWXUQ IRU ODERU QRU ZLOO DQ\ RWKHU DP DIUDLG EH DWWHPSWHG XQGHU WKH SHUVRQV UHSUHVHQWLQJ SURSHUW\ QRU XQWLO VXJDU IDLOV &f 5DWKHU WKDQ H[SHULPHQW WKH 7REDJRQLDQ SODQWHUV SUHIHUUHG WR UHLQYHVW ZKDW VXUSOXV IXQGV WKH\ KDG LQ LQIUDVWUXFWXUDO LPSURYHPHQWV IRU VXJDU SURGXFWLRQ 6KRUWO\ DIWHU HPDQFLSDWLRQ WKH 7REDJRQLDQ SODQWHUV UHFHLYHG D WRWDO RI e DV UHPXQHUDWLRQ IRU WKHLU IUHHG VODYHV 2WWOH\ f 8VLQJ WKLV PRQH\ DQG ZKDWHYHU HOVH ZDV DYDLODEOH WR WKHP DW OHDVW VRPH 7REDJRQLDQ SODQWHUV XSJUDGHG WKHLU PLOOLQJ HTXLSPHQW (XEDQNV f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f 7KRXJK LW LV OLNHO\ WKDW RWKHU PRGLILFDWLRQV ZHUH DWWHPSWHG DW WKLV WLPH DV ZHOO SDUWLFXODUO\ WR WKH ERLOLQJ WUDLQV WKHUH LV QR LQGLFDWLRQ

PAGE 106

WKDW WKH QHZ ERLOLQJ WHFKQRORJLHV WKHQ DYDLODEOH ZHUH LQWURGXFHG WR 7REDJR 5DWKHU LW DSSHDUV DV WKRXJK WKH PDMRU SURGXFWLRQHQKDQFHPHQW HIIRUWV ZHUH DLPHG DW LQFUHDVLQJ MXLFH\LHOG SHU FDQH SRVVLEO\ EHFDXVH WKH QHZ WHFKQRORJLHV ZHUH PRUH SURQH WR EUHDNGRZQ RU EHFDXVH WKH ODERUHUV ZHUH QRW FRQVLGHUHG FRPSHWHQW WR UXQ DQG PDLQWDLQ WKH PRUH VRSKLVWLFDWHG HTXLSPHQW 'HVSLWH WKH RQJRLQJ GURXJKW ZKLFK FRQWLQXHG WR EULQJ DW OHDVW VRPH UHOLHI IURP ODERU SUREOHPV WKH SODQWHUVn RWKHU IHDUV ZHUH UHDOL]HG 6LQFH WKH SHULRG RI IUHHGRP LQ $XJXVW D QXPEHU RI ODERUHUV KDYH TXLWWHG HVWDWHV DQG DUH HLWKHU RFFXS\LQJ ODQG RQ UHQW RU DV OHDVHKROGHUV RU DV IUHHKROGHUV 'RZODQG f ,Q WKH ILUVW WKUHH PRQWKV RI IUHHGRP XS WR ODERUHUV OHIW WKH HVWDWHV WR WDNH XS UHVLGHQFH LQ VPDOO KDPOHWV VFDWWHUHG DERXW WKH LVODQG 1LGGULH f 7KH H[RGXV FRQWLQXHG LQ WKH IROORZLQJ \HDUV VR WKDW E\ WKHUH KDG RFFXUUHG D UDSLG VSUHDG RI LQGHSHQGHQW VHWWOHPHQW WKURXJKRXW WKH LVODQG *RYHUQRU 5HLG LQ 1LGGULH f 6XJDU SURGXFWLRQ LQ WKH \HDUV IROORZLQJ HPDQFLSDWLRQ ZDV DW D JHQHUDOO\ ORZHU OHYHO WKDQ LW KDG EHHQ DV D UHVXOW 7DEOH f 7KLV WUHQG GLG QRW UHDOO\ EHFRPH DSSDUHQW XQWLO KRZHYHU SHUKDSV LQGLFDWLQJ VRPH ODJ WLPH EHWZHHQ HPDQFLSDWLRQ DQG HVWDWH GHVHUWLRQ IRU WKH EXON RI WKH IRUPHU VODYHV ,I VR LW VHHPV SRVVLEOH WKDW WKLV KLDWXV FRXOG KDYH EHHQ DQ DGMXVWPHQW SHULRG GXULQJ ZKLFK ODERUHUV ODLG WKH JURXQGZRUN

PAGE 107

IRU WKHLU IOLJKW DPDVVLQJ IXQGV IURP ZKDWHYHU VRXUFHV ZHUH DYDLODEOH WR WKHP JHWWLQJ EXLOGLQJ PDWHULDOV WRJHWKHU DQG VHOHFWLQJ ODQGV RQ ZKLFK WKH\ FRXOG VHWWOH 8QOLNH RQ PDQ\ RWKHU LVODQGV WKH WHQGHQF\ WR VTXDW RQ HVWDWH RU FURZQ ODQGV ZDV PLQLPDO RQ 7REDJR 1LGGULH f 5DWKHU IUHHG VODYHV SUHIHUUHG WR EX\ RU OHDVH PDUJLQDO HVWDWH ODQGV ZKHUH WKH\ ZHUH PDGH DYDLODEOH ,QGHHG PDNLQJ WKHVH ODQGV DYDLODEOH ZDV SUREDEO\ D JRRG GHFLVLRQ RQ WKH SDUW RI WKH LQGLYLGXDO SODQWHUV VLQFH LW DW OHDVW DVVXUHG WKHP RI D SRWHQWLDO ODERU VXSSO\ FORVHE\ 'HVSLWH WKH ODERU VKRUWDJHV DVVRFLDWHG ZLWK HPDQFLSDWLRQ DQG WKH VXEVWDQWLDO GHFUHDVH LQ VXJDU H[SRUWV WKDW RFFXUUHG DV D UHVXOW 7DEOH f WKH SHULRG LPPHGLDWHO\ IROORZLQJ HPDQFLSDWLRQ ZDV RQH RI DPLFDELOLW\ EHWZHHQ IUHHG VODYHV DQG HVWDWH RZQHUV :RRGFRFN f 0HWD\DJH %\ FRQWLQXLQJ ODERU VKRUWDJHV DQG GURXJKW VR UHGXFHG WKH DELOLW\ RI WKH 7REDJRQLDQ SODQWHUV WR SURGXFH VXJDU WKDW D V\VWHP RI PHWD\DJH RU ODERU VKDULQJ ZDV LQWURGXFHG 7KRXJK LWV VXFFHVV LV QRW UHDGLO\ DSSDUHQW LQ H[SRUW ILJXUHV IRU WKH IROORZLQJ \HDU 7DEOH f LWV DGYDQWDJHV ZHUH DSSDUHQWO\ UHFRJQL]HG IRU LW ZDV SHUPDQHQWO\ HVWDEOLVKHG LQ 1LGGULH f ,Q WKDW \HDU VXJDU H[SRUWV URVH WR WRQV WKH KLJKHVW WKH\ KDG

PAGE 108

EHHQ VLQFH ,Q WKH XQRIILFLDO DJUHHPHQWV WKDW FRQVWLWXWHG WKH PHWD\DJH V\VWHP D ZRUNHU ZDV UHVSRQVLEOH IRU DOO DJULFXOWXUDO RSHUDWLRQV RQ D JLYHQ FDQH SLHFH LQFOXGLQJ FOHDULQJ SODQWLQJ DQG KDUYHVWLQJ 7KDW ZRUNHU FRXOG WKHQ HQWHU LQWR DJUHHPHQWV ZLWK RWKHU ZRUNHUV HLWKHU IRU D VKDUH RI WKH VXJDU RU LQ H[FKDQJH IRU ODERU WR IXOILOO WKRVH WDVNV ,Q SD\PHQW IRU WKH ODERU WKH ZRUNHU ZDV DOORZHG WR NHHS KDOI WKH VXJDU PDQXIDFWXUHG 7KH HVWDWH RZQHU NHSW WKH RWKHU KDOI LQ FRPSHQVDWLRQ IRU FDSLWDO LQSXWVf§KH RU VKH RZQHG WKH ODQG WKH FDUWV LQ ZKLFK WKH FDQH ZDV KDXOHG WR WKH PLOO WKH VWRFN DQG WKH PLOO LWVHOI DQG ZDV DOVR UHVSRQVLEOH IRU SD\LQJ VSHFLDOLVW ZRUNHUV LQ WKH PLOO WKH ERLOHUPDQ WKH IRUHPDQ DQG RQH ILUHPDQf ,Q DGGLWLRQ WKH ZRUNHU ZDV DOORZHG WR NHHS D ERWWOH RI UXP IRU HYHU\ EDUUHO RI VXJDU SURGXFHG SURYLGHG WKDW DOO WKH PRODVVHV ZDV XVHG LQ UXP SURGXFWLRQ 2WWOH\ f %\ RQHWKLUG RI WKH VXJDU SURGXFHG RQ 7REDJR ZDV JHQHUDWHG XQGHU WKH PHWD\DJH V\VWHP 3KLOOLSV QGL&KDSWHU f $ YHUVLRQ RI WKH PHWD\DJH V\VWHP ZDV LQ RSHUDWLRQ RQ 7REDJR XQWLO WKH V ZKHQ WKH ODVW RI WKH HVWDWHV DEDQGRQHG VXJDU SURGXFWLRQ +DOO f DUJXHV WKDW WKH \HDU ZDV SLYRWDO IRU %ULWLVK SODQWHUV LQ WKH &DULEEHDQ ,Q WKDW \HDU SDUOLDPHQW SDVVHG WKH 6XJDU 'XWLHV $FW ZKLFK HIIHFWLYHO\ HQGHG WKH SURWHFWLRQLVP WKDW KDG FKDUDFWHUL]HG %ULWLVK &DULEEHDQ VXJDU SURGXFWLRQ WKURXJKRXW LWV KLVWRU\ 7KH HFRQRPLF VRFLDO DQG

PAGE 109

SROLWLFDO FRQVHTXHQFHV RI WKLV DFW KDYH QRW EHHQ GRFXPHQWHG IRU 7REDJR EXW RQ -DPDLFD WKHUH ZDV D SUHGLFWDEOH GHFUHDVH LQ WKH SURILWV DYDLODEOH IURP VXJDU SURGXFWLRQ +DOO f 7KLV VDPH GHFUHDVH ZDV QR GRXEW IHOW E\ 7REDJR SODQWHUV DV ZHOO 7KH XQH[SHFWHGO\ ORZ 7REDJR H[SRUW ILJXUH IRU 7DEOH f PD\ UHIOHFW DQ LPPHGLDWH DQG VKRUW WHUP UHDFWLRQ E\ 7REDJR SODQWHUV 7KH KLVWRULFDO UHFRUG SURYLGHV QR LQIRUPDWLRQ RQ DQ HQYLURQPHQWDO SHUWXUEDWLRQ WKDW FDQ RWKHUZLVH DFFRXQW IRU VXFK D GLVPDO H[SRUW ILJXUH SDUWLFXODUO\ IROORZLQJ WKH KLJK ILJXUH IRU DQG SUHFHGLQJ WKH HYHQ KLJKHU ILJXUH IRU 6XFK DQG HYHQW FDQQRW EH UXOHG RXW KRZHYHU 7KH LPPHGLDWH SUREOHPV IDFLQJ WKH 7REDJRQLDQ SODQWHUV ZHUH DJJUDYDWHG RQ D YDVW VFDOH E\ WKH KXUULFDQH RI ZKLFK VWUXFN WKH LVODQG RQ WKH QLJKW RI 2FWREHU :RRGFRFN f 7KH GHVWUXFWLRQ LW ZURXJKW ZDV DPSOLILHG E\ WKH FRPSODFHQF\ RI 7REDJRnV LQKDELWDQWV 2Q PRVW RWKHU &DULEEHDQ LVODQGV WKH DSSURDFK RI D VWRUP RI VXFK PDJQLWXGH ZRXOG KDYH EHHQ UHFRJQL]HG EHIRUH LWV DFWXDO DUULYDO )RUHZDUQHG UHVLGHQWV ZRXOG KDYH GRQH ZKDW WKH\ FRXOG WR SUHSDUH 7REDJR KRZHYHU ZDV WKRXJKW WR EH WRR VRXWKHUO\ WR EH LQ WKH SDWK RI KXUULFDQHV DQG ZKDW ZDUQLQJV WKH LVODQG LQKDELWDQWV KDG ZHQW XQKHHGHG -RKQ 'DY\ YLVLWHG 7REDJR QLQH PRQWKV DIWHU WKH KXUULFDQH 6LQFH GHVFULSWLRQV RI WKH KXUULFDQH DUH VFDUFH LQ WKH OLWHUDWXUH LQFOXGH KLV GHVFULSWLRQ LQ IXOO

PAGE 110

(LJKWHHQ SHUVRQV ZHUH NLOOHG E\ EXLOGLQJV IDOOLQJ RQ WKHP D ODUJH QXPEHU ZHUH ZRXQGHG RI ZKRP HLJKWHHQ GLHG 7KH JUHDWHU QXPEHU RI WKH KRXVHV WKURXJKRXW WKH LVODQG ZHUH PRUH RU OHVV GDPDJHG 0DQ\ RI WKHP DQG VRPH RI WKH PRVW VXEVWDQWLDO ZHUH OHYHOOHG ZLWK WKH JURXQG 7KH GHYDVWDWLRQ HIIHFWHG LQ WKH QDWLYH IRUHVWV ZDV JUHDW VWULSSHG RI WKHLU OHDYHV WKH\ SUHVHQWHG DV GHVFULEHG E\ DQ H\H ZLWQHVV D PRVW XQQDWXUDO ZLQWU\ DSSHDUDQFH f§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f§KRZ LQ D KRXVH LQ ZKLFK WKH ERRNV ZHUH EORZQ IURP WKHLU VKHOYHV DQG VFDWWHUHG DERXW WKH URRP RQH RI WKH FDQGOHV WKDW ZDV EXUQLQJ RQ D WDEOH LQ WKH PLGGOH RI WKH URRP ZDV QRW H[WLQJXLVKHG 0DQ\ RWKHU H[DPSOHV RI VXFK SDUWLDO DFWLRQ ZHUH VSRNHQ RI f§LQVWDQFHV RI 'DY\ EHOLHYHG WKDW WKH KXUULFDQH VWUXFN RQ 1RYHPEHU UDWKHU WKDQ 2FWREHU 7KXV HLJKW PRQWKV ODWHU LV -XO\ 7DQQHKLOO f FLWHV 2FWREHU DV WKH GDWH 3HUKDSV H[SODLQLQJ ZK\ H[SRUW ILJXUHV IRU WKDW \HDU GR QRW VKRZ D PDUNHG GHFOLQH GHVSLWH WKH ZLGHVSUHDG GDPDJH WR VXJDU ZRUNV GLVFXVVHG EHORZf

PAGE 111

IUDLO VWUXFWXUHV HVFDSLQJ ZKHQ VWURQJ EXLOGLQJV DGMRLQLQJ ZHUH EORZQ GRZQ f§RI ZLQGRZV VWURQJO\ EDUUHG IRUFHG RSHQ ZKHQ RWKHUV LQ WKH VDPH KRXVH WKH VKXWWHUV RI ZKLFK ZHUH IDVWHQHG RQO\ E\ D ZHDN ELW RI FRUG UHPDLQHG FORVHG DQG XQLQMXUHG :KHQ WKH WHPSHVW ZDV UDJLQJ DW WKH 1( H[WUHPLW\ RI WKH LVODQG WKH %DURPHWHU DW )RUW .LQJ *HRUJH ZDV OLWWOH DIIHFWHG WKRXJK VKRUWO\ DIWHUZDUGV ZKHQ LW ZDV ZLWQHVVHG LQ LWV YLROHQFH WKHUH WKH IDOO RI WKH PHUFXU\ ZDV FRQVLGHUDEOHf§D OLWWOH PRUH WKDQ KDOI DQ LQFK 7KLV OHDUQW IURP WKH 0HGLFDO 2IILFHU RI WKH VWDWLRQ ZKR ZDWFKHG WKH LQVWUXPHQW DW WKH WLPH 'XULQJ WKH KXUULFDQH WKHUH ZDV D YHHULQJ RI WKH ZLQG DOPRVW LQ D FLUFOH DQG WKH YRUWLFDO WHQGHQF\ RI WKH DLU LQ PRWLRQ ZDV WROG ZDV ZHOO H[HPSOLILHG LQ WKH J\UDWLRQ RI WKH 5HLQGHHU VWHDP SDFNHW LQ WKH *XOI RI 3DULDK RII 3RUW RI 6SDLQ 7ULQLGDG RYHU SDUW RI ZKLFK LVODQG WKH KXUULFDQH SDVVHG DQG WKRXJK ZLWK GLPLQLVKHG QRW ZLWKRXW GHVWUXFWLYH HIIHFW 'DY\ >@f 2WWOH\ f DGGV WR WKH OLVW RI GHYDVWDWLRQ +H QRWHV WKDW WKURXJKRXW WKH LVODQG VXJDU IDFWRULHV FKXUFKHV DQG KXWV ZHUH GHVWUR\HG WKHUH ZDV VHYHUH ORVV RI OLIH VHYHUDO EULJV ZHUH GULYHQ DVKRUH WKH URRI RI WKH EDUUDFNV DW )RUW .LQJ *HRUJH ZDV WRUQ RII DQG WKH SULVRQ ZDOOV IHOO GRZQ :RRGFRFN HQXPHUDWHV WKH GHVWUXFWLRQ 2Q WKH HVWDWHV WKLUW\ GZHOOLQJ KRXVHV DQG WZHQW\ VL[ VXJDU ZRUNV ZHUH GHPROLVKHG DQG WKLUW\RQH GZHOOLQJ KRXVHV DQG WKLUW\WKUHH VXJDU ZRUNV LQMXUHG )RXU KXQGUHG DQG ILIW\VL[ RI WKH ODERUHUVn FRWWDJHV ZHUH UD]HG WR WKH JURXQG DQG RQH KXQGUHG DQG VHYHQW\VL[ JUHDWO\ GDPDJHG ,Q 6FDUERURXJK DQG LWV HQYLURQV RQH KXQGUHG DQG WZHQW\WZR KRXVHV RI DOO GHVFULSWLRQV LQFOXGLQJ RXW EXLOGLQJV ZHUH EORZQ GRZQ DQG HLJKW\IRXU PXFK LQMXUHG f +DSSLO\ WKH SULVRQHUV ZHUH VR WHUULILHG WKDW QRQH WRRN WKH RSSRUWXQLW\ WR HIIHFW DQ HVFDSH 'RZODQG f SXWV WKH QXPEHU RI GHVWUR\HG VXJDU ZRUNV DW

PAGE 112

$IWHU WKH KXUULFDQH 7REDJRQLDQV EDQGHG WRJHWKHU WR UHEXLOG 7KH WRWDO ORVV WR SURSHUW\ ZDV HVWLPDWHG DW EHWZHHQ e 2WWOH\ f DQG e :RRGFRFN f ,Q WKH FURZQ FRQWULEXWHG e WRZDUGV UHEXLOGLQJ 2WWOH\ f WR ZKLFK ZDV VKRUWO\ DGGHG D ORDQ RI e DOVR E\ WKH FURZQ WR EH DGPLQLVWHUHG E\ /RDQ &RPPLVVLRQHUV DSSRLQWHG E\ WKH *RYHUQRU RI 7REDJR 2QO\ e ZHUH DFFHSWHG E\ 7REDJR KRZHYHU )URP WKH SULQFLSDO IXQGV RI QRW OHVV WKDQ e ZHUH WR EH PDGH DYDLODEOH WR ODQGHG LQGLYLGXDOV 'HVSLWH WKH UHDG\ DYDLODELOLW\ RI FDVK RQO\ e ZHUH DFWXDOO\ DGYDQFHG IRU UHEXLOGLQJ :RRGFRFN f $ FRQWULEXWLQJ IDFWRU WR WKH VORZ UDWH RI UHEXLOGLQJ ZDV WKH ILQDQFLDO FROODSVH RI WKH :HVW ,QGLD %DQN DOPRVW LPPHGLDWHO\ IROORZLQJ WKH KXUULFDQH 1LGGULH f ,W LV KLJKO\ XQOLNHO\ WKDW DOO RI WKH GHVWUR\HG IDFWRULHV ZHUH UHEXLOW :KHUHDV 'DY\ SXWV WKH QXPEHU RI IXQFWLRQLQJ VXJDU ZRUNV DW WZR \HDUV DIWHU WKH KXUULFDQH > @ f :RRGFRFN VKRZV RQO\ E\ DSSHQGL[ f )ROORZLQJ HPDQFLSDWLRQ GHFOLQHV LQ WKH WDULII DQG WUDGH SURWHFWLRQV IRU &DULEEHDQ VXJDU DQG VWHDGLO\ GHFUHDVLQJ SULFHV WKHUH ZDV DQ HYHQ IXUWKHU ORVV RI FRQILGHQFH LQ VXJDU RQ WKH SDUW RI 7REDJRQLDQ SODQWHUV GXULQJ WKH ODWH V

PAGE 113

(QFXPEHUHG (VWDWHV 7KH ODVW JDVS IRU 7REDJRQLDQ VXJDU SURGXFWLRQ ZDV EURXJKW DERXW E\ WKH HQDFWPHQW RI WKH (QFXPEHUHG (VWDWHV $FW RI 3ULRU WR WKDW GDWH QR HVWDWH FRXOG EH VROG XQOHVV DOO PRUWJDJHV DJDLQVW LW ZHUH ILUVW SDLG RII 7KH (QFXPEHUHG (VWDWHV $FW DOWHUHG WKLV SROLF\ DOORZLQJ WKH WUDQVIHU RI WLWOHV IRU HQFXPEHUHG HVWDWHV LUUHVSHFWLYH RI WKHLU HQFXPEUDQFHV 7KLV SURFHVV FRXOG EH LQLWLDWHG E\ WKH RZQHU RI WKH HVWDWH RU E\ WKH PRUWJDJHUV ,Q DGGLWLRQ WKH PRUWJDJHU FRXOG ELG DQ DPRXQW XS WR WKH DPRXQW RI WKH PRUWJDJH ZLWKRXW KDYLQJ WR SXW XS DQ\ FDVK 7REDJR DSSOLHG IRU HQFXPEHUHG HVWDWH FRXUWV LQ %\ WHQ HVWDWHV KDG FKDQJHG KDQGV 3KLOOLSV QG&KDSWHU f $OO RI WKH 7REDJR HVWDWHV VROG XQGHU WKH (QFXPEHUHG (VWDWHV $FW SULRU WR SDVVHG LQWR WKH KDQGV RI WKH PRUWJDJHU *UHHQ f $OO WROOHG HVWDWHV RQ 7REDJR ZHUH VROG XQGHU WKH (QFXPEHUHG (VWDWHV $FW SULRU WR LWV DEROLVKPHQW LQ DW D WRWDO FRVW RI e 3KLOOLSV QG&KDSWHU f 7KH SULPDU\ EHQHILFLDU\ RI WKH DFW RQ 7REDJR ZDV *LOOHVSLH t &R ZKLFK RZQHG VHYHQ HVWDWHV LQ 6W 'DYLGnV 3DULVK DORQH E\ WKH WLPH RI WKH FRPSDQ\nV ILQDQFLDO FROODSVH LQ 1LGGULH +D\ [LL [LLLf 7KH GHPLVH RI *LOOHVSLH t &R HIIHFWLYHO\ HQGHG VXJDU SURGXFWLRQ RQ 7REDJR WKRXJK WKH LQGXVWU\ FRQWLQXHG IRU VRPH \HDUV WKURXJK VKHHU LQHUWLD ,Q 7REDJR ZDV SROLWLFDOO\

PAGE 114

VXERUGLQDWHG WR 7ULQLGDG DQG LQ LW EHFDPH D ZDUG RI WKDW LVODQG 1R 7REDJRQLDQ SURGXFWLRQ RU H[SRUW ILJXUHV DUH DYDLODEOH DIWHU VLQFH 7REDJRnV ILJXUHV ZHUH PHUJHG ZLWK WKRVH RI 7ULQLGDG DIWHU WKDW GDWH 'HHUU f $W OHDVW ILYH HVWDWHV ZHUH SURGXFLQJ VXJDU DV ODWH DV WKH HDUO\ V WKRXJK QRQH ZDV H[SRUWHG 7KHVH FHDVHG RSHUDWLRQ QHDUO\ VLPXOWDQHRXVO\ LQ ZKHQ WKH PLOO PDFKLQHU\ ZDV VROG RII DV VFUDS WR WKH 86 $UP\ IRU WKH $PHULFDQ ZDU HIIRUW 5LFKDUG *UDQW DQG 0U 6SHQFH SHUVRQDO FRPPXQLFDWLRQf 7RGD\ RQO\ D SDLU RI EURWKHUV PDNH VXJDU LQ DQ\ TXDQWLWLHV XVLQJ HTXLSPHQW VDOYDJHG IURP DEDQGRQHG HVWDWHV DQG WHFKQLTXHV WKDW KDYH EHHQ LQ XVH RQ 7REDJR VLQFH 7KH\ GR QRW UHILQH WKHLU SURGXFW SDVW WKH ZHW VXJDU VWDJH DQG DOO LV VROG IRU ORFDO FRQVXPSWLRQ

PAGE 115

&+$37(5 %$&.*5281' 72 $5&+$(2/2*,&$/ 5(6($5&+ +LVWRULFDO DUFKDHRORJ\ KDV EHHQ GHILQHG DV WKH VWXG\ RI WKH SURFHVVHV DQG LQWHUUHODWLRQVKLSV E\ ZKLFK KXPDQ VRFLDO DQG HFRQRPLF RUJDQL]DWLRQ GHYHORSHG DQG HYROYHG LQ WKH PRGHUQ ZRUOG 'HDJDQ f 7KH DUFKDHRORJ\ RI VXJDU HVWDWHV LV DQ LPSRUWDQW SDUW RI WKLV VWXG\ EHFDXVH VXJDU HVWDWHV FRPELQH IHDWXUHV RI ERWK D SUHFDSLWDOLVW DJULFXOWXUDO HFRQRP\ GHULYHG IURP PHGLHYDO (XURSH DQG D FDSLWDOLVWLF PRGH RI SURGXFWLRQ PRUH FKDUDFWHULVWLF RI PRGHUQ LQGXVWULDOL]HG FRXQWULHV 0LQW] :ROI f ,Q WKH EURDGHVW WHUPV D SODQWDWLRQ LV DQ LQVWLWXWLRQ XVLQJ FRHUFHG ODERU WR SURGXFH DJULFXOWXUDO JRRGV IRU VDOH WR DQ RYHUVHDV PDUNHW 7KRPSVRQ f ,Q JHQHUDO SODQWDWLRQV RU HVWDWHV DV ZLOO UHIHU WR WKHP KDYH EHHQ FKDUDFWHUL]HG E\ PRQRFURSSLQJ WKH IRFXV RQ D VLQJOH FURS WR WKH QHDU H[FOXVLRQ RI DOO RWKHUV ,QVRIDU DV WKLV LPSOLHV WKDW WKH PDMRULW\ RI SODQWDWLRQ SURILWV DUH GHULYHG IURP D VLQJOH VRXUFH LW LV DSW ,Q 7REDJR WKH SULQFLSDO FURS ZDV VXJDU FDQH DOWKRXJK RWKHU SURGXFWV DOVR SOD\HG D SURPLQHQW UROH RQ RFFDVLRQ )URP WKH VXJDU FDQH JURZQ RQ 7REDJR PXVFRYDGR VXJDU UXP DQG PRODVVHV ZHUH SURGXFHG IRU

PAGE 116

FRQVXPSWLRQ LQ %ULWDLQ FRQWLQHQWDO (XURSH DQG 1RUWK $PHULFD 7R VD\ WKDW DOO WKH ODQG RI D JLYHQ HVWDWH ZDV GHYRWHG WR WKH SULQFLSDO FURS ZRXOG EH HUURQHRXV KRZHYHU IRU WKH ODQG ZDV SXW WR D YDULHW\ RI XVHV 3DVWXUHV DQG SDGGRFNV DFFRPPRGDWHG OLYHVWRFN RZQHUn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

PAGE 117

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nV 3DULVK VHH )LJXUH f 6LQFH FRPSDULVRQ RI PRGHUQ PDSV ZLWK WKRVH RI WKH KLVWRULF SHULRG UHYHDOV WKDW WKH SDULVK ERXQGDULHV KDYH QRW UHPDLQHG VWDWLF 6W 'DYLGnV 3DULVK LV GHILQHG E\ LWV RULJLQDO ERXQGDULHV DV VXUYH\HG LQ WKH HDUO\ \HDUV RI VHWWOHPHQW HJ $QRQ\PRXV %\UHV f $V D FXOWXUDOO\ FUHDWHG XQLW RI ODQG 6W 'DYLGnV 3DULVK LV DQ LGHDO VWXG\ DUHD IRU WKLV UHVHDUFK LW EHFDXVH UHIOHFWV WKH VDPH FRQFHSWV RI ODQG XWLOL]DWLRQ DV WKH OD\RXW

PAGE 118

RI HVWDWHV ,W DOVR FRQWDLQV QHDUO\ DOO RI WKH &RXUODQG 5LYHU DQG PXFK RI LWV GUDLQDJH V\VWHP 7KXV WKH SDULVK VHUYHG DV D GHILQLWLYHO\ ERXQGHG XQLW WKDW DOVR KDV WKH DGYDQWDJH RI VSDQQLQJ WKH WKUHH PDMRU WRSRJUDSKLFDO ]RQHV RI 7REDJR 6W 'DYLGnV 3DULVK FRYHUHG DQ DUHD RI DFUHV DQG ZDV GLYLGHG LQWR ORWV E\ WKH LQLWLDO VXUYH\V -HIIHU\V f ,Q DFUHV ZHUH RFFXSLHG RU FODLPHG E\ HVWDWHV +RZHYHU SDUWLFXODUO\ RQ WKH QRUWKZHVW FRDVW ODUJH WUDFWV UHPDLQHG XQLPSURYHG DV GLG VRPH VPDOOHU WUDFWV LQ WKH PLGGOH SRUWLRQ RI WKH SDULVK ,Q WKDW \HDU WKH SDULVK FRQWDLQHG VXJDU HVWDWHV DQG RQH HVWDWH GHYRWHG WR VWRFN UDLVLQJ
PAGE 119

ZHVW DQG LI LWV VXUIDFH LV QRW DFWXDOO\ HYHQ WR DGPLW RI WLOODJH E\ WKH SORZ LW KDV RWKHU DGYDQWDJHV ZKLFK 6W 3DWULFNnV KDV QRW ,W KDV ULYXOHWV WR WXUQ LWV VXJDU PLOOV DQG HVSHFLDOO\ WKH ILQH ULYHU RI &RXUODQG ZKLFK IRU IRXU PLOHV UXQV ZHVWZDUG RQ LWV VRXWKHUQ ERUGHU WKHQ ZLQGV WR WKH QRUWK FHQWUDOO\ GLYLGHV WKH SDULVK LQ LWV FRXUVH WR GLVHPEDUTXH LQ &RXUODQG ED\ DQG WXUQV HLJKW ZDWHUPLOOV HUH LW UHDFKHV WKH VHD (LJKW RI WKH SODQWDWLRQV LQ 6W 'DYLGnV LQODQG KDYH WKH DGYDQWDJH RI HDV\ FDUWDJH E\ WKH SXEOLF KLJK URDG WR 6FDUERURXJK DQG WR &RXUODQG )RXU RWKHU SODQWDWLRQV OD\ QHDU WKH ODWWHU ED\ DQG WKH SODQWDWLRQV HDVWZDUG GURJKHU >VKLS E\ VPDOO FRDVWLQJ YHVVHOV@ IURP WKH VPDOO ED\V RI .LQJ 3HWHUnV DQG $UQRV 9DOH
PAGE 120

SURGXFWLRQ $V WKH VL]H RI WKH VXUYH\ WUDFW SURKLELWHG D SHUFHQW VDPSOH VXJDU IDFWRULHV ZHUH DVVXPHG WR EH FORVHO\ WLHG WR ORFDO K\GURORJ\ ,QLWLDO VXUIDFH VXUYH\ IRFXVHG RQ PDMRU ZDWHUFRXUVHV 6XSSOHPHQWDO LQIRUPDWLRQ IURP KLVWRULF PDSV QRZ KRXVHG LQ WKH 0XVHXP RI 7REDJR +LVWRU\ )RUW .LQJ *HRUJH 7REDJR RU LQ WKH SRVVHVVLRQ RI 0U 'DYLG 3KLOOLSV 3URVSHFW (VWDWH 7REDJR DQG LQIRUPDO LQWHUYLHZV ZLWK ORFDO LQIRUPDQWV SURYHG D PRUH HIIHFWLYH PHDQV RI ORFDWLQJ VLWHV :KLOH WKH LQIRUPDWLRQ GHULYHG IURP PDSV DQG LQIRUPDQWV ZDV UDUHO\ VSHFLILF HQRXJK GHWDLO ZDV DYDLODEOH WR VLJQLILFDQWO\ LQFUHDVH WKH HIIHFWLYHQHVV RI VXUIDFH VXUYH\ WHFKQLTXHV )ROORZLQJ UHJLRQDO VXUYH\ LQWHQVLYH VXUIDFH VXUYH\ ZDV XQGHUWDNHQ DW WKUHH VLWHV 6LWHV ZHUH VHOHFWHG ZKHQ DOO PDMRU VLWH FRPSRQHQWV ZHUH SUHVHQW RU OLNHO\ WR EH SUHVHQW ZKHQ WKH LQWHJULW\ RI PDMRU DUFKLWHFWXUDO UHPDLQV ZDV JRRG DQG ZKHQ WKH VXEVXUIDFH DUFKDHRORJLFDO GHSRVLWV ZHUH DSSDUHQWO\ LQWDFW 'DWD GHULYHG IURP WKH UHJLRQDO VXUYH\ DQG IURP WKH GRFXPHQWV VHDUFK ZHUH XVHG WR GHWHUPLQH WKH VXLWDELOLW\ RI VLWHV IRU LQWHQVLYH VXUIDFH VXUYH\ ,QWHQVLYH VXUYH\ \LHOGHG D YDULHW\ RI VLWHVSHFLILF ORFDWLRQDO DQG GHVLJQ UHODWHG GDWD 'XULQJ WKH FRXUVH RI VXUYH\ VFDOH GUDZLQJV RI LQGLYLGXDO VWUXFWXUHV ZHUH SURGXFHG ,Q DGGLWLRQ LQVWUXPHQW VXUYH\ ZDV FRQGXFWHG WR 7KHVH FRQVLVWHG RI VXJDU IDFWRULHV HVWDWH KRXVHV DQG DVVRFLDWHG RXWEXLOGLQJV 1R UHPDLQV DVVRFLDWHG ZLWK HVWDWH YLOODJHV ZHUH LQLWLDOO\ LGHQWLILHG

PAGE 121

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f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f 7KLV UHVHDUFK ZDV LQLWLDOO\ GHVLJQHG WR FRQWUDVW WKHVH WZR ZRUOG YLHZV 7HVWLQJ WR GRFXPHQW WKH LQWHUQDO SDWWHUQLQJ RI DQ HVWDWH YLOODJH LQFOXGHG E\ FHQWLPHWHU VKRYHO WHVWLQJ

PAGE 122

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f UHSUHVHQWV DQ LQWHQVLYH GRPHVWLF RFFXSDWLRQ RI D FLUFXPVFULEHG DUHD IRU DW OHDVW \HDUV 7KH FRPSOH[LW\ UHYHDOHG E\ WKH OLPLWHG H[FDYDWLRQ XQGHUWDNHQ E\ WKLV UHVHDUFK LQGLFDWHV WKDW PXFK PRUH H[WHQVLYH WHVWLQJ LV UHTXLUHG EHIRUH WKH LQWHUQDO SDWWHUQLQJ SUHVHQW DW WKH VLWH FDQ EH DFFXUDWHO\ GHILQHG

PAGE 123

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f /DWHU ZRRGHQ UROOHUV ZHUH HQFDVHG LQ LURQ WR LQFUHDVH WKHLU HIILFLHQF\ %\ WKH PLGHLJKWHHQWK FHQWXU\ UROOHU FRQVWUXFWLRQ ZDV HQWLUHO\ RI FDVWLURQ 6LWWHUVRQ f $OO H[WDQW UROOHUV RQ 7REDJR DUH PDGH RI LURQ

PAGE 124

VHW LQ WKH IUDPH VLGHE\VLGH DQG XSULJKW 7KLV LV D YHUWLFDO UROOHU PLOO $ ODWHU DQG PRUHHIILFLHQW GHVLJQ LV WKH KRUL]RQWDO UROOHU PLOO LQ ZKLFK WZR UROOHUV DUH VHW VLGHE\VLGH RQ D KRUL]RQWDO D[LV ZKLOH D WKLUG UROOHU LV ORFDWHG RQ WRS RI WKH VHDP EHWZHHQ WKHP 'HHUU (XEDQNV f 3RZHU WR GULYH WKH PLOOV ZDV GHULYHG IURP D YDULHW\ RI VRXUFHV 'XULQJ WKH \HDUV RI SHDN SURGXFWLRQ WKH PRVW HIILFLHQW DQG GHVLUDEOH SRZHU VRXUFH ZDV YLD D ZDWHU ZKHHO IRU WKH UHDVRQV GLVFXVVHG LQ &KDSWHU DERYHf DQG GXH WR WKHLU SUHGLFWDEOH SRZHU GHOLYHU\ WKXV IL[LQJ WKH FRPSXWDWLRQ RI KRZ PXFK VXJDU LV WR EH PDGH LQ ZKDW WLPH DQG ZKHQ WR EH VKLSSHG VR WKDW WKH PHUFKDQW YHVVHO WR EH IUHLJKWHG PD\ EH UHDG\ DW DQFKRU LQ WKH SDUWLFXODU ED\
PAGE 125

EUHDVWVKRW ZKHHO ZDV XVHG ZKHQ WKH FDQDO ZDV QRW KLJKHU WKDQ WKH ZKHHO ,Q WKLV LQVWDQFH WKH ZDWHU ZDV WUDQVSRUWHG WR D SRLQW VOLJKWO\ DERYH WKH PLGVHFWLRQ RI WKH ZKHHO DQG GURSSHG 0RUH ZDWHU ZDV UHTXLUHG WKDQ IRU HLWKHU D EDFNVKRW RU RYHUVKRW ZKHHO )LQDOO\ D JUHDW GHDO RI ZDWHU ZDV UHTXLUHG IRU DQ XQGHUVKRW ZKHHO ZKHUH WKH IRUFH RI WKH ZDWHU LQ LWV FKDQQHO UDWKHU WKDQ LWV ZHLJKW GURYH WKH ZKHHO (XEDQNV f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nV WUHHV ZHUH FXW GRZQ OXPEHU EHFDPH PRUH H[SHQVLYH (YHQWXDOO\ WDOO FLUFXODU ZLQGPLOO WRZHUV RI VWRQH RU FRUDO ZLWK VPDOO VXUPRXQWLQJ VDLOKRXVHV EHFDPH WKH QRUP 0DQ\ RI WKHVH WRZHUV GRW WKH ODQGVFDSH WRGD\ :KHUH ZDWHU RU ZLQG SRZHU ZDV QRW IHDVLEOH FDWWOH PLOOV ZHUH RIWHQ XVHG 2[HQ RU RWKHU WUDFWLRQ DQLPDOV ZHUH

PAGE 126

\RNHG WR ORQJ SROHV ZKLFK LQ WXUQ ZHUH DWWDFKHG WR WKH FUXVKLQJ PLOO E\ GULYH VKDIWV DQG JHDUV 7KH R[HQ ZRXOG FLUFOH D WUDFN DWRS D PDVVLYH FLUFXODU IRXQGDWLRQ 7KH EHVW SUHVHUYHG H[DPSOH RQ 7REDJR LV DW (QJOLVKPDQn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
PAGE 127

FDOOHG D KRW ZHOO 'HHUU f ([DPSOHV RI KRW ZHOOV RQ WKH LVODQG DUH DSSUR[LPDWHO\ WZR PHWHUV ORQJ FHQWLPHWHUV ZLGH DQG RQH PHWHU GHHS 2FFDVLRQDOO\ WKH W\SH RI FUXVKLQJ PLOO FDQ EH LGHQWLILHG LQ FRQMXQFWLRQ ZLWK WKH SRZHU VRXUFH HYHQ ZKHQ WKH PLOO LWVHOI LV QRW SUHVHQW 7KH SRZHU IURP D ZDWHU ZKHHO LV WUDQVPLWWHG RQ D KRUL]RQWDO D[LV YLD WKH FHQWUDO D[OH RI WKH ZKHHOf ,I LW LV EHLQJ XVHG WR GULYH D YHUWLFDO PLOO EHYHOHG JHDUV DUH UHTXLUHG WR WUDQVIHU WKH SRZHU IURP WKH KRUL]RQWDO WR WKH YHUWLFDO SODQH 7KXV LI EHYHOHG JHDUV DUH SUHVHQW RQ D ZDWHU SRZHUHG VLWH WKH FUXVKLQJ PLOO LWVHOI ZDV RI WKH YHUWLFDO W\SH .QRZQ VWHDP HQJLQHV RQ 7REDJR DOVR WUDQVPLW SRZHU LQ WKH KRUL]RQWDO $OWKRXJK WKH VLWXDWLRQ KDV QRW DULVHQ RQ NQRZQ 7REDJR VLWHV WKH H[DFW RSSRVLWH LV WKH FDVH ZLWK FDWWOH PLOOV ZKLFK WUDQVPLW SRZHU RQ D YHUWLFDO D[LVf§WKH SUHVHQFH RI EHYHOHG JHDUV RQ D FDWWOH PLOO VLWH ZRXOG LQGLFDWH WKDW D KRUL]RQWDO PLOO ZDV LQ XVH 7KH VDPH FDQQRW EH VDLG RI ZLQGPLOOV EHFDXVH EHYHOHG JHDUV DUH UHTXLUHG QR PDWWHU ZKDW WKH PLOO W\SH WR WUDQVIHU SRZHU IURP WKH KRUL]RQWDO D[LV RI WKH VDLOV WR WKH YHUWLFDO GULYH VKDIW 7KH 6XJDU :RUNV 7KH VHYHUDO SURGXFWV RI D VXJDU HVWDWH PXVFRYDGR VXJDU PRODVVHV DQG UXP DUH SURGXFHG LQ WKH VXJDU ZRUNV ,Q JHQHUDO D VXJDU IDFWRU\ LV FRPSRVHG RI WKUHH EXLOGLQJV

PAGE 128

RU URRPVf D ERLOLQJ KRXVH D FXULQJ KRXVH DQG D GLVWLOOHU\ 2FFDVLRQDOO\ WKHVH EXLOGLQJV DUH GLVFRQWLJXRXV EXW PRUH IUHTXHQWO\ WKH\ DUH DUUDQJHG LQ D OLQHDU IDVKLRQ RU LQ VXFK D ZD\ WKDW WKH\ IRUP D 7 RU DQ / :KDWHYHU WKH DUUDQJHPHQW WKH ERLOLQJ KRXVH LV XVXDOO\ D RQH VWRU\ EXLOGLQJ ZKLOH WKH FXULQJ KRXVH DQG WKH GLVWLOOHU\ DUH WZR VWRU\ EXLOGLQJV 7KH IROORZLQJ GHVFULSWLRQ RI WKH YDULRXV PDQXIDFWXULQJ SURFHVVHV LQFOXGHV RSHUDWLRQV SHUIRUPHG DW WKH FUXVKLQJ PLOO ,W LV GHULYHG IURP 'HHUU f (XEDQNV f 0RUHQR )UDJLQDOV f 6FDUG f DQG :UD\ f 7KH QXPEHUV LQ SDUHQWKHVHV UHIHU WR )LJXUH ZKLFK LQ WXUQ LV GHULYHG IURP D SODQ YLHZ RI WKH 3URYLGHQFH (VWDWH FRPSOH[ DV LW H[LVWHG LQ DERXW 0F7HDU QGf 7KH FRPSOH[ LV 7VKDSHG 7KH ILUVW VWHS LQ WKH PDQXIDFWXULQJ SURFHVV LV WKH H[WUDFWLRQ RI MXLFH IURP FXW FDQH 'XULQJ KDUYHVW FXW FDQH LV EURXJKW WR WKH PLOO \DUG f RQ FDUWV RU E\ RWKHU PHDQV -XLFH H[WUDFWLRQ LV SHUIRUPHG E\ D KRUL]RQWDO FUXVKLQJ PLOO f GULYHQ E\ D ZDWHU ZKHHO f 7KH H[WUDFWHG MXLFH LV DOORZHG WR IORZ LQWR D FODULI\LQJ WDQN f ZKHUH FRQWDPLQDQWV DUH DOORZHG WR VHWWOH RXW 2QFH FODULILFDWLRQ KDV WDNHQ SODFH WKH MXLFH IORZV WKURXJK D JXWWHU RU SLSH f LQWR WKH ERLOLQJ KRXVH ,Q WKH ERLOLQJ KRXVH WKH MXLFH LV DOORZHG WR IORZ LQWR WKH ILUVW DQG ODUJHVW RI D VHULHV RI URXQGERWWRPHG LURQ

PAGE 129

3URYLGHQFH 6XJDU )DFWRU\ FD 8SSHU VWRU\ DIWHU 0F7HDU QGf 8SSHU VWRU\ /RZHU VWRU\ # + kkk#pkk# pkkkkkk k D k k ( % k##k#k kkkkkkkkk kkkkkkkkk kkkkkkkkk 0LOO \DUG f§9HUWLFDO FUXVKLQJ PLOO f§:DWHU ZKHHO f§&ODULI\LQJ WDQN f§-XLFH SLSH &RSSHUV f§%RLOLQJ KRXVH IORRU f§7HPSHUDWXUH FRQWURO RXWOHWV f§&KLPQH\ f§&RROLQJ DQG FU\VWDOL]DWLRQ WDQNV f§6MDPPLQJV JXWWHU 6WULPPLQJV WDQN f§0RODVVHV GUDLQLQJ f§0RODVVHV UHFHLYHUV f§)HUPHQWDWLRQ YDWV f§6WLOOV f§:RUP WDQN f§%XP UHFHLYHUV f§$JLQJ UXP )LJXUH f§ 3URYLGHQFH 6XJDU )DFWRU\ FD

PAGE 130

SDQV LQGLYLGXDOO\ DQG DQRPDORXVO\ FDOOHG FRSSHUV f DQG FROOHFWLYHO\ UHIHUUHG WR DV D WUDLQ $OO LGHQWLILHG WUDLQV RQ 7REDJR DUH RI WKH W\SH NQRZQ DV MDPDLFD WUDLQV ZKLFK FRQWDLQ ILYH FRSSHUV ,Q WKH ILUVW FRSSHU WKH MXLFH LV KHDWHG WR WKH ERLOLQJ SRLQW XVLQJ EDJDV WKH GULHG UHPQDQWV RI FUXVKHG FDQHV DIWHU ZKLFK LW LV WUDQVIHUUHG WR D VHFRQG VOLJKWO\ VPDOOHU FRSSHU E\ ERLOHUPHQ VWDQGLQJ RQ WKH ERLOLQJ KRXVH IORRU f 7KH WUDQVIHU LV DFFRPSOLVKHG XVLQJ ORQJ KDQGOHG ODGOHV %HFDXVH FRSSHU VL]H LV GLUHFWO\ UHODWHG WR WKH VXUIDFH DUHD IURP ZKLFK OLTXLGV LQ WKH MXLFH FDQ HYDSRUDWH FRSSHUV RI SURJUHVVLYHO\ GHFUHDVHG VL]H DOORZ JUHDWHU FRQWURO RI HYDSRUDWLRQ GXULQJ WKH FRXUVH RI WKH ERLOLQJ SURFHVV %HQHDWK WKH WUDLQ WKH WHPSHUDWXUH RI LQGLYLGXDO FRSSHUV LV FDUHIXOO\ FRQWUROOHG E\ D VRSKLVWLFDWHG V\VWHP RI GDPSHUV f RSHQLQJ LQWR D FHQWUDO IOXH FRQQHFWHG WR D WDOO FKLPQH\ f $ GDPSHU LV DVVRFLDWHG ZLWK HDFK FRSSHU DQG FDQ EH RSHQHG RU FORVHG VLQJO\ RU LQ JURXSV WR YDU\ WHPSHUDWXUH DW WKH GLUHFWLRQ RI WKH KHDG ERLOHU 7KH ERLOLQJ MXLFH LV WUDQVIHUUHG IURP FRSSHU WR FRSSHU XQWLO ILQDOO\ LW LV SODFHG LQ WKH ILIWK DQG VPDOOHVW FRSSHU FDOOHG WKH VWULNH SDQ ,Q WKH VWULNH SDQ FU\VWDOOL]DWLRQ EHJLQV WR RFFXU DW ZKLFK SRLQW WKH MXLFH LV WUDQVIHUUHG LQWR FRROLQJ DQG SUHOLPLQDU\ FU\VWDOOL]DWLRQ WDQNV f ZKHUH LW LV DOORZHG WR FRRO DQG WKH FU\VWDOOL]DWLRQ SURFHVV

PAGE 131

,OO FRQWLQXHV 7KH HQG UHVXOW RI WKH ERLOLQJ SURFHVV LV ZHW VXJDU :KLOH ERLOLQJ WDNHV SODFH D ILOP IRUPV LQ WKH FRSSHUV RQ WKH VXUIDFH RI WKH MXLFH 7KLV ILOP FDOOHG VNLPPLQJV LV UHPRYHG E\ WKH ERLOHUPHQ ZLWK WKHLU ORQJ KDQGOHG ODGOHV DQG SODFHG LQ D JXWWHU UXQQLQJ DORQJVLGH WKH WUDLQ f 7KH VNLPPLQJV JXWWHUV DUH HDVLO\ UHFRJQL]HG E\ HYHQO\ VSDFHG FRQYH[LWLHV LQ WKHLU ZDOOV 7KH FRQYH[LWLHV LQFUHDVHG WKH HIILFLHQF\ RI WKH ERLOHUPHQ RYHUVHHLQJ WKH ERLOLQJ SURFHVV DQG GHFUHDVHG ZDVWDJH E\ SURYLGLQJ D FRQYHQLHQW SODFH WR SRXU VNLPPLQJV ZLWK WKH XQZLHOG\ ODGOHV )URP WKH JXWWHU WKH VNLPPLQJV FROOHFW LQ D WDQN f DQG DUH ODWHU XVHG LQ WKH UXPPDNLQJ SURFHVV 2QFH WKH ZHW VXJDU KDV FRROHG LW LV SODFHG LQ FDVNV ZKLFK DUH WUDQVIHUUHG WR WKH XSSHU IORRU RI WKH FXULQJ KRXVH f ZKHUH FU\VWDOOL]DWLRQ FRQWLQXHV %HFDXVH WKH FDVNV KDYH KROHV LQ WKHLU EDVHV WKH SRUWLRQ RI WKH ZHW VXJDU WKDW GRHV QRW FU\VWDOOL]H GUDLQV LQWR UHFHLYHUV EHORZ f 7KLV GUDLQHG SRUWLRQ LV PRODVVHV ,W FRXOG HLWKHU EH VROG DV D ILQLVKHG SURGXFW RU IXUWKHU WUDQVIRUPHG LQ WKH UXPPDNLQJ SURFHVV 7KH FU\VWDOOL]HG SRUWLRQ RI WKH ZHW VXJDU LV PXVFRYDGR VXJDU 2Q 7REDJR PXVFRYDGR VXJDU ZDV VKLSSHG WR %ULWLVK SRUWV ZKHUH LW ZDV IXUWKHU UHILQHG DQG VROG DV WDEOH VXJDU 7KH UXPPDNLQJ SURFHVV WDNHV SODFH LQ WKH GLVWLOOHU\ 7KH ILUVW VWHS LQYROYHV SODFLQJ PRODVVHV DQG VNLPPLQJV LQ

PAGE 132

ODUJH YDWV f DGGLQJ \HDVW DQG DOORZLQJ IHUPHQWDWLRQ WR WDNH SODFH 2QFH IHUPHQWDWLRQ KDV RFFXUUHG WKH UHVXOWLQJ DOFRKROHQULFKHG V\UXS LV WUDQVIHUUHG WR D VWLOO f $V WKH V\UXS LV KHDWHG LQ WKH VWLOO WKH DOFRKRO LV WUDQVIRUPHG LQWR YDSRU ZKLFK H[LWV WKH VWLOO WKURXJK D VPDOOGLDPHWHU WXEH DW WKH WRS )URP WKLV WXEH WKH JDVVHV WKHQ UXQ LQWR WKH ZRUP WXEH D FRQYROXWHG SLSH RI VLPLODU GLDPHWHU :KLOH WKH GLVWDO HQG RI WKH ZRUP WXEH LV FRQQHFWHG WR WKH VWLOO WKH SUR[LPDO HQG SURWUXGHV LQWR WKH LQWHULRU RI WKH GLVWLOOHU\ LWVHOI 7KH FRQYROXWLRQV RI WKH ZRUP WXEH ZKLFK LQFUHDVH LWV VXUIDFH DUHD RFFXU LQ D ZRUP WDQN f D ZDWHUILOOHG WDQN WKDW FRROV WKH ZRUP WXEH DQG WKXV KDVWHQV FRQGHQVDWLRQ 7KH FRQGHQVHG FOHDU OLTXLG WKDW IORZV IURP WKH ZRUP WXEH LQWR WKH GLVWLOOHU\ LV UDZ UXP ,W LV FROOHFWHG LQ D UHFHLYHU f DQG WUDQVIHUUHG WR ZRRGHQ FDVNV :DWHU LV WKHQ DGGHG WR UHGXFH WKH DOFRKRO FRQWHQW DQG WKH UXP LV WKHQ DOORZHG WR DJH LQ WKH FDVNV SULRU WR VKLSSLQJ f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

PAGE 133

VXJDU ZRUNV 7KXV WKH MXLFHSLSH OHDGLQJ IURP WKH FODULI\LQJ WDQN WR WKH FRSSHUV ZDV D JUDYLW\IHHG SLSH ZKLFK QHFHVVLWDWHV WKDW WKH FUXVKLQJ PLOO EH ORFDWHG DW D KLJKHU HOHYDWLRQ WKDQ WKH MDPDLFD WUDLQ &UXVKLQJ PLOOV ZHUH RIWHQ SODFHG RQ KLJK SODWIRUPV IRU WKLV UHDVRQ *UDYLW\ ZDV DOVR XWLOL]HG ZLWKLQ WKH VXJDU ZRUNV LWVHOI DQG WKH ZRUNV ZHUH PRVW RIWHQ EXLOW WR WDNH DGYDQWDJH RI QDWXUDO WRSRJUDSK\ :KLOH WKH LOOXVWUDWHG ERLOLQJ KRXVH VLWV DW JURXQG OHYHO LWV IORRU LV DW URXJKO\ WKH VDPH HOHYDWLRQ DV RU VOLJKWO\ KLJKHU WKDQ WKH XSSHU IORRU RI WKH FXULQJ KRXVH DQG WKH GLVWLOOHU\ 7KLV DOORZHG OLTXLGV VXFK DV VNLPPLQJV WR IORZ IURP WKH VNLPPLQJV WURXJK LQ WKH ERLOLQJ KRXVH WR WKH VNLPPLQJV WDQN LQ WKH XSSHU VWRU\ RI WKH GLVWLOOHU\ 7KH WHQGHQF\ WR XVH WKH IRUFH RI JUDYLW\ LQ WKH VXJDU PRODVVHV DQG UXPPDNLQJ SURFHVVHV IUHTXHQWO\ DOORZV UHDG\ IXQFWLRQDO LGHQWLILFDWLRQ RI VXJDU IDFWRU\ FRPSRQHQWV LQ WKH ILHOG FUXVKLQJ PLOOV DUH JHQHUDOO\ ORFDWHG DW KLJKHU HOHYDWLRQV WKDQ ERLOLQJ KRXVHV DQG ERLOLQJ KRXVHV DUH JHQHUDOO\ KLJKHU WKDQ FXULQJ KRXVHV DQG GLVWLOOHULHV :LWKLQ WKH GLVWLOOHU\ WKH VWLOOVf LV XVXDOO\ ORFDWHG DW WKH ORZHVW HOHYDWLRQ 7KLV DOORZV IHUPHQWHG PRODVVHV WR EH JUDYLW\IHG WR WKH VWLOO %HFDXVH WKH YDSRU SURGXFHG LQ WKH VWLOO LV OLJKWHU WKDQ DLU DQG LV XQGHU SUHVVXUH LW WUDYHOV XSZDUGV XQGHU LWV RZQ LPSHWXV IURP WKH VWLOO DQG LQWR WKH ZRUP WXEH 7KH ZRUP WXEH H[WHQGV IURP WKH WRS WR WKH ERWWRP RI WKH ZRUP WDQN LQ D VHULHV RI FRLOV ,Q WKH ZRUP WDQN WKH

PAGE 134

YDSRU LV IRUFHG GRZQZDUGV WKURXJK WKH ZRUP WXEH E\ SUHVVXUH IURP WKH VWLOO XQWLO FRROLQJ DQG FRQGHQVDWLRQ RFFXU 2QFH FRQGHQVDWLRQ WDNHV SODFH WKH UHVXOWLQJ UXP D OLTXLG IORZV GRZQZDUGV XQGHU WKH IRUFH RI JUDYLW\ LQWR WKH UXP UHFHLYHU (VWDWH +RXVHV (VWDWH RZQHUV OLYHG LQ ODUJH UHVLGHQFHV DW VRPH GLVWDQFH IURP WKH IDFWRU\ FRPSOH[ ,Q DGGLWLRQ WKH SODQWHUnV PDQVLRQ LV JHQHUDOO\ VLWXDWHG RQ WKH KLJKHVW JURXQG RI KLV HVWDWH QRW RQO\ IRU IUHVKQHVV RI DLU DQG IRU KHDOWK EXW WR FRPPDQG D YLHZ RI KLV QHJURH YLOODJH RI WKH VXJDU ZRUNV DQG JHQHUDOO\ ZKDW LV GRLQJ RQ WKH SODQWDWLRQ
PAGE 135

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f ZKLOH RWKHUV ZHUH FRQVWUXFWHG RQ VROLG IRXQGDWLRQV HJ WKH $OPD HVWDWH KRXVH LQ 6W *HRUJHnV 3DULVKf 7KH DUFKHG VWDLUZD\ FRQWLQXHV WR EH D SURPLQHQW GHVLJQ HOHPHQW LQ 7REDJRQLDQ WRGD\ (VWDWH 9LOODJHV 7KH ILQDO PDMRU HOHPHQW RI 7REDJRnV VXJDU HVWDWHV LV WKH HVWDWH YLOODJH ZKLFK KRXVHG WKH VODYHV DQG ODWHU WKH IUHH ODERUHUV RI WKH HVWDWH ,Q WKH ORFDWLRQDO PRGHO DOOXGHG WR DERYH WKH HVWDWH YLOODJH RFFXSLHV D SRVLWLRQ

PAGE 136

RYHUZDWFKHG E\ WKH HVWDWH KRXVH DQG ZLWK DFFHVV WR ERWK WKH FDQH ILHOGV DQG WKH VXJDU IDFWRU\ FRPSOH[ 1HYHUWKHOHVV HVWDWH YLOODJHV DUH H[FHHGLQJO\ GLIILFXOW WR ORFDWH DUFKDHRORJLFDOO\ EHFDXVH WKH\ ZHUH RIWHQ EXLOW ZLWK OHVV GXUDEOH PDWHULDOV 0RVW HVWDWH YLOODJHV HQFRXQWHUHG GXULQJ ILHOGZRUN ZHUH ORFDWHG ZLWK WKH DLG RI KLVWRULF PDSV +LJPDQ f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f ,Q RWKHU FDVHV KRZHYHU YLOODJH OD\RXW LV OHVV ULJLGO\RUGHUHG DQG FRQVLVWV RI VHHPLQJO\ UDQGRP FOXVWHUV RI KRXVHV 7KH VKLIW WR DQ DSSDUHQWO\ UDQGRP KRXVLQJ DUUDQJHPHQW PD\ UHIOHFW WKH GHYHORSPHQW RI LQFUHDVHG LQWHUQDO DXWRQRP\ RQ WKH SDUW RI WKH ODERUHUV DV WKH\ EHFDPH EHWWHU DGDSWHG WR WKH HVWDWH UHJLPH DQG OLIH LQ WKH &DULEEHDQ $UPVWURQJ f ,I WKHVH DSSDUHQWO\ UDQGRP DUUDQJHPHQWV ZHUH LQGHHG JHQHUDWHG E\ WKH VODYHV WKH\ ZHUH SUREDEO\ QRW UDQGRP DW DOO 5DWKHU WKH\ OLNHO\ UHIOHFWHG NLQVKLS GLYLVLRQV ZLWKLQ

PAGE 137


PAGE 138

LQLWLDOO\ RQ D UHJLRQDO SHUVSHFWLYH IROORZHG E\ PRUH LQWHQVLYH LQYHVWLJDWLRQ DW VHOHFWHG HVWDWHV

PAGE 139

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f LW ZDV VWHDP GULYHQ 7KH LGHQWLILDEOH

PAGE 140

SRZHU VRXUFHV GULYLQJ WKH FUXVKLQJ PLOOV RI 6W 'DYLGn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n VXUIDFH WHVWLQJ ZKLOH UHIHUULQJ SULPDULO\ WR WKH &DUWH 0LOLWDLUH $QRQ\PRXV f 7KH HQFXPEHUHG HVWDWHV PDS RI 2UDQJH +LOO DQG $PLW\ +RSH $QRQ\PRXV QGf ZDV DOVR XVHG 7KH ORFDWLRQV RI IRXU HVWDWH YLOODJHV ZHUH YHULILHG DQG DQ DGGLWLRQDO ILYH DUH LQGLFDWHG RQ WKH &DUWH 0LOLWDLUH RU E\ RWKHU VRXUFHV EXW ZHUH QRW ILHOG FKHFNHG RU ZHUH XQVDWLVIDFWRULO\ YHULILHG 7KHVH WHQ WRZHUV ZHUH IRU RSHUDWLQJ FUXVKLQJ PLOOV $Q DGGLWLRQDO ZLQGPLOO WRZHU H[LVWV RQ &RXUODQG (VWDWH 6PDOOHU WKDQ WKRVH GHVLJQHG WR KRXVH D FUXVKLQJ PLOO LW KRXVHG D ZDWHU SXPS WKDW ZDV XVHG WR WUDQVIHU ZDWHU IURP WKH &RXUODQG 5LYHU WR WKH &RXUODQG HVWDWH KRXVH DQG IDFWRU\ FRPSOH[

PAGE 141

7KH UHVXOWV RI WKH UHJLRQDO VXUYH\ DUH VXPPDUL]HG LQ 7DEOH DQG GLVFXVVHG EHORZ 7KH ORFDWLRQ RI WKH PDMRU VLWH FRPSRQHQWV HQFRXQWHUHG GXULQJ WKH VXUYH\f§IDFWRULHV HVWDWH KRXVHV DQG HVWDWH YLOODJHVf§DUH LGHQWLILHG LQ )LJXUH 6LWH 'HVFULSWLRQV $ GHVFULSWLRQ RI WKH ORFDWHG DUFKDHRORJLFDO UHPDLQV DVVRFLDWHG ZLWK HDFK RI WKH VXJDU HVWDWHV LQ WKH VWXG\ DUHD LV SUHVHQWHG EHORZ $GGLWLRQDO LQIRUPDWLRQ DERXW HDFK HVWDWH GHULYHG IURP WKH GRFXPHQWDU\ VRXUFHV LV SURYLGHG LQ 7DEOHV DQG 7KLV LQIRUPDWLRQ UHODWHV WR HVWDWH ERXQGDULHV RZQHUVKLS SURGXFWLRQ DQG SRSXODWLRQ ,QGLYLGXDO ODQG ORWV LQ 6W 'DYLGnV 3DULVK DUH GHSLFWHG LQ )LJXUH $GYHQWXUH (VWDWH $GYHQWXUH (VWDWH LV ORFDWHG LQ WKH ZHVWHUQ SDUW RI 6W 'DYLGnV 3DULVK DQG LV ERUGHUHG RQ WKH VRXWK E\ WKH &RXUODQG 5LYHU DQG RQ WKH QRUWKZHVW E\ WKH WRZQ RI 3O\PRXWK 7KH WHUUDLQ FRQVLVWV RI JHQWO\ UROOLQJ ORZ KLOOV 7KH PD[LPXP HOHYDWLRQ LV VOLJKWO\ PRUH WKDQ PHWHUV DERYH VHD OHYHO ZKLOH WKH PLQLPXP HOHYDWLRQ DSSURDFKHV VHD OHYHO 7KH UHPDLQV RI WZR VXJDU IDFWRULHV DUH ORFDWHG RQ ZKDW ZDV RQFH $GYHQWXUH (VWDWH RQH ZLQG SRZHUHG DQG RQH ZDWHU SRZHUHG 'XH WR SUHVHUYDWLRQDO DQG DUFKLWHFWXUDO FKDUDFWHULVWLFV DQG WKH JUHDWHU HIILFLHQF\ RI ZDWHU SRZHU ,

PAGE 142

3$5,6+ 6W 'DYLGfV 3DULVK (VWDWHV & RXU /DQG 5LYHU 6HFRQGDU\ VWUHDP 3ULPDU\ DQG 6HFRQGDU\ URDGV f§ 6XJDU IDFWRU\ (VWDWH KRXVH 6KLSSLQJ SRLQW =IW24 LD}WHmY P FRQWRXUV

PAGE 143

7DEOH 6XPPDU\ RI HVWDWH FRPSRQHQWV LGHQWLILHG GXULQJ (VWDWH )& :0 :: 6( &0 (+ (9 $GYHQWXUH $PLW\ +RSH $UQRV 9DOH &DVWDUD 'RZQV &RXUODQG &UDLJ +DOO &XOORGHQ 'XQYHJDQ )UDQNO\QnV *ROGHQ /DQH +LJKODQGV ,QGLDQ :DON " .LQJ 3HWHUnV /HV &RWHDX[ /RZHU 4XDUWHU 0DU\nV +LOO 0W 'LOORQ 2UDQJH +LOO 3URYLGHQFH 5XQQHPHGH :KLP :RRGODQGV HQJLQH &0 &DWWOH PLOO (+ (VWDWH KRXVH (9 (VWDWH YLOODJHf§ QXPHUDOV LQGLFDWH WKH QXPEHU RI FRPSRQHQWV LGHQWLILHG IRU D JLYHQ HVWDWH TXHVWLRQ PDUNV LQGLFDWH D SUREDEOH LGHQWLILFDWLRQ

PAGE 144

7DEOH (VWDWH DQG ORW RZQHUVKLS IRU YDULRXV \HDUV /RW *UDQWHHVf $GYHQWXUH (VWDWH 5 2WWOH\ /RZULD 2WWOD\ KDLUV + 2WWOH\ 5 *RUGRQ *LOODVSLD &R ‘ f f f f ‘ f f f f ‘ f ‘ ‘ f f f f f $PLW\ +RSH ( cVWDWH 7 *LEERQ %DOIRXU %DOIRXU %DOIRXU KDLUV ( (OOLFH *LOODVSLD &R $ *LEERQ f f f f $UQRV 9DOH (VWDWH W $ *LEERQ 6 'U\DGDOD 'U\VGDOD 'DYLVRQ 6LPSVRQ .LWVRQ KDLUV .LWVRQ ‘ ‘ f f f &DVWDUD 'RZQV (VWDWH : +HZLWW 5RVD 3 0XUGRFN 1$ 1$ 1$ : /XFDV ‘ ‘ 9 'DVYLJQDV 0 'DVYLJQDV +W 'LOORQf &RXUODQG (VWDWH 6LPSVRQ 5 3HWULH 3HWULH KHLUH 3DWULD 5DSV *RUGRQ 7 5HLG &UDLJ +DOO ( cVWDWH %XUQ &UDLJ & 1LJKWPDQ 1$ 1 'HDYLJQHD 'HDYLJQHD

PAGE 145

7DEOH FQWGf /RW *UDQWHHVf &XOORGHQ (D WDWH 3 0DF9LFDU + 5REHUWVRQ 0F&XOORJK 0$ .LUN HW DO +LJKODQGVf .LUN )RUEHV f f % $OOH\QH $OOD\QD %DLUV 'XQYHJDQ (D LWDWH SDUWf 7 %URZQ + 0F/HRG 0F/HRG KHLUV %DOO KHLUV 6 ,VDDFV 7 5DLG )UDQNO\QnV ( cVWDWH $ 5LFKDUGVRQ 1RUUODRQ 0RUULVRQ & &UD\ 8UTXKDUW 0F*LOOLYUD\ f ‘ +DFNDWW /DV &RWDDX[f +DFNHWW ‘ f f 8UTXKDUW 0F*LOOLYUD\ *ROGHQ /DQH (VWDWH 5 )DUU : /DDRQW 0RUULVRQ 0LQLV DW DO 7ULFN 7RQ KDLUV & 7RD HW DO f f f f f +LJKODQGV (VWDWH $ $OH[DQGHU 0DF9LFDU 0DF9LFDU & *UD\ .LUN DW DO .LUN

PAGE 146

7DEOH FQWGf /RW *UDQWHHVf ,QGLDQ :DON (VWDWH +DPLOWRQ +DPLOWRQ +DPLOWRQ +DPLOWRQ 0F'RXJDOO t 0LWD *LOOHVSLH &R $ 6WHZDUW f f +DPLOWRQ f f f .LQJ 3HWHUnV (VWDWH *ORYHU / 'XSUHD / 'XSUHV 1$ /HLWK 1$ : )RUEHD f f f 8QNQRZQ 1$ /HV &RWHDX[ (VWDWH $ $OOHQ 0RUULVRQ 0RUULDRQ :\OLR DW DO +DFNHWW +DFNHWW 3 0DF9LFDU f ‘ f .LUN HW DO +LJKODQGVf +DFNHWW .LUN +LJKODQGVf +DFNHWW /RZHU 4XDUWHU (VWDWH 0 %URZQ &DOORZ &DOORZ 0LVV &DPSEHOO 5 *RUGRQ *OOODDSLD W &R 0DU\nV +LOO (VWDWH 0DFQDH )
PAGE 147

7DEOH FQWGf /RW *UDQWHH V f 3URYLGHQFH (VWDWH 3DUWf 7 %URZQ $QGHUVRQ $QGHUVRQ 'DYLVRQ 6LPSVRQ & &DVWDOLD & &DVWDOLD 5XQQHPHGH (VWDWH : )RUEHV & ,UYLQH & ,UYLQH ,UYLQH KHLUV /HLWK % 0DF'RXJDOO :KLP (VWDWH
PAGE 148

7DEOH 6XPPDU\ RI 6W 'DYLGnV (VWDWHV /DQGV (XUR SHDQV 6ODYHV 3URGXFH %DWDWD /RWV *UDQWHG $FUHV :DWHU 0LOO" 2ZQHUVf 5HV" :KLWH 6HUYDQWV 0DOH 6ODYHV )HPDOH 6ODYHV &KLOG 6ODYDV 7RWDO 6ODYDV 6XJDU +KGVf 5XP S! $GYHQWXUH
PAGE 149

%9 )LJXUH 6W 'DYLGV 3DULVK /RWV 6W 'DYLGfV 3DULVK /RWV DIWHU 1LGGULH f &RXUODQG 5LYHU

PAGE 150

EHOLHYH WKH ZLQG SRZHUHG VLWH WR EH WKH ROGHU ,W LV UHIHUUHG WR DV $GYHQWXUH ROG ZRUNV 7KH PRVW SURPLQHQW IHDWXUH RI $GYHQWXUH ROG ZRUNV LV WKH EDVH RI D KH[DJRQDO ZLQGPLOO WRZHU DSSUR[LPDWHO\ VL[ PHWHUV LQ GLDPHWHU 7KH UHPDLQV RI D VPDOO VXJDU IDFWRU\ DUH ORFDWHG PHWHUV DZD\ GRZQ D JHQWOH VORSH WUHQGLQJ WR WKH ZHVW %RWK DUH LQ D YHU\ SRRU VWDWH RI SUHVHUYDWLRQ 7KH\ DUH ORFDWHG RQ WKH HQG RI D ORZ ILQJHU ULGJH RYHUORRNLQJ WKH PRGHUQ WRZQ RI 3O\PRXWK DQG DUH DGMDFHQW WR D VFKRRO 0XFK RI WKH PDVRQU\ KDV EHHQ FDUULHG RII IRU ODWHU EXLOGLQJ 1R KDUGZDUH DVVRFLDWHG ZLWK VXJDU SURGXFWLRQ LV SUHVHQW 7KH UHPDLQV RI DQ HVWDWH KRXVH DUH ORFDWHG PHWHUV VRXWKHDVW RI WKH ROG ZRUNV RQ WKH KLOOWRS IURP ZKLFK WKH ILQJHU ULGJH H[WHQGV 9HU\ OLWWOH UHPDLQV RI WKH HVWDWH KRXVH $ GHQVH VFDWWHULQJ RI UXEEOH FRQVLVWLQJ RI EULFN PDVRQU\ DQG D SLHU IUDJPHQW LV SUHVHQW RQ WKH VXUIDFH DV DUH HLJKWHHQWK DQG QLQHWHHQWK FHQWXU\ FHUDPLF VKHUGV RI %ULWLVK PDQXIDFWXUH $ VLQJOH FRSSHU LV SUHVHQW RQ WKH VLWH 1R LQIRUPDWLRQ DERXW WKH IRUP RI WKH HVWDWH KRXVH ZDV UHFRYHUDEOH EXW D WZR PHWHU SRUWLRQ RI D VWRQH IRXQGDWLRQ RULHQWHG WR 1( PD\ EH LQWDFW 7KH &DUWH 0LOLWDLUH $QRQ\PRXV f VKRZV ERWK WKH HVWDWH KRXVH DQG WKH ROG ZRUNV /RFDWHG VOLJKWO\ VRXWK RI D OLQH EHWZHHQ WKH WZR DQG FORVHU WR WKH KRXVH DUH VPDOO GRWV WKDW UHSUHVHQW LQGLYLGXDO VWUXFWXUHV LQ WKH HVWDWH

PAGE 151

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
PAGE 152

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n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

PAGE 153

WKH UHPDLQV RI D ZLQGPLOO WRZHU ZHUH SUHVHQW RQ WKH SURSHUW\ EXW WKDW D PRGHUQ KRXVH KDV EHHQ EXLOW DWRS WKHP 7KLV ZDV QRW FRQILUPHG 7KH UHPDLQGHU RI WKH IDFWRU\ FRPSOH[ ZDV QRW ORFDWHG /RFDO UHVLGHQWV DOVR UHSRUWHG WKH SUHVHQFH RI DW OHDVW RQH EXULDO VLWH RQ D KLOOWRS PHWHUV QRUWK RI WKH ZRUNV $JDLQ WKLV LV SULYDWH SURSHUW\ DQG SHUPLVVLRQ WR HQWHU ZDV QRW JDLQHG 1R RWKHU LQIRUPDWLRQ DERXW WKH EXULDO VLWH RU VLWHV LV DYDLODEOH 7KH UHPDLQV RI D IXQFWLRQDOO\ XQLGHQWLILHG FRPSOH[ RI VHYHQ EXLOGLQJV WKDW PD\ EH DVVRFLDWHG ZLWK $PLW\ +RSH (VWDWH DUH ORFDWHG VRPH PHWHUV QRUWK RI WKH ZRUNV DUHD RQ D GU\ KLOOWRS LQ WKH H[WUHPH QRUWKZHVW FRUQHU RI WKH HVWLPDWHG SURSHUW\ ERXQGDU\ 7KH FRPSOH[ KDV D VHW RI EULFN VWHSV LQGLFDWLYH RI DQ HVWDWH KRXVH DQG VHYHUDO RXWEXLOGLQJV DQG ODQGVFDSH PRGLILFDWLRQV LQ DVVRFLDWLRQ 0RVW RI WKHVH DUH IXQFWLRQDOO\ XQLGHQWLILHG DQG WKH FRPSOH[ PD\ KDYH EHHQ WKH VLWH RI DGGLWLRQDO DFWLYLWLHV DQG QRW VWULFWO\ D UHVLGHQWLDO VLWH 7KH &DUWH 0LOLWDLUH $QRQ\PRXV f VKRZV D VFDWWHULQJ RI VWUXFWXUHV LQ WKH YLFLQLW\ RI WKH $PLW\ +RSH IDFWRU\ FRPSOH[ 1R HYLGHQFH RI WKHVH VWUXFWXUHV ZDV IRXQG GXULQJ VXUYH\ WKRXJK WKH\ PD\ EH ORFDWHG LQ WKH XQVXUYH\HG DUHD RI SULYDWH SURSHUW\ UHSRUWHGO\ FRQWDLQLQJ WKH IDFWRU\ FRPSOH[

PAGE 154

$UQRV 9DOH (VWDWH $UQRV 9DOH (VWDWH LV VRPHWLPHV UHIHUUHG WR LQ WKH GRFXPHQWV DV -RKQnV +LOO (VWDWH $ VPDOO SRUWLRQ RI WKH HVWDWH SURSHUW\ MXWWLQJ WR WKH VRXWK DEXWV WKH &RXUODQG 5LYHU EXW WKH PDMRULW\ RI WKH HVWDWH OLHV WR WKH QRUWK RI WKH ULYHU 7KUHH SHUHQQLDO WULEXWDULHV RI WKH ULYHU UXQ WKURXJK WKH HVWDWH SURSHUW\ 7KH HVWDWH LV ERUGHUHG WR WKH QRUWKZHVW E\ WKH VHD ZKLOH LWV PD[LPXP HOHYDWLRQ LV DSSUR[LPDWHO\ PHWHUV DERYH VHD OHYHO 7KH $UQRV 9DOH IDFWRU\ FRPSOH[ LV ORFDWHG LQ WKH YDOOH\ RI D VPDOO SHUHQQLDO VWUHDP LQ WKH VRXWKHUQ SRUWLRQ RI WKH SURSHUW\ $OWKRXJK WKH ERLOLQJ KRXVH FKLPQH\ LV VWLOO VWDQGLQJ WKH PDMRULW\ RI WKH LQWDFW DUFKLWHFWXUDO UHPDLQV DUH YLVLEOH RQO\ RQ WKH VXUIDFH 7KH ZRUP WDQN LV UHDGLO\ DSSDUHQW KRZHYHU DQG SRVVHVVHV ZHOOURXQGHG FRUQHUV 7KH VXJDU ZRUNV LWVHOI LV 7VKDSHG DQG KDG D VHSDUDWH PLOO KRXVH WR WKH VRXWK 9LUWXDOO\ DOO RI WKH FUXVKLQJ KDUGZDUH LV VWLOO LQ VLWX 7KH PLOO KRXVH VKHOWHUHG D YHUWLFDO FUXVKLQJ PLOO WKDW LV IODQNHG E\ DQ RYHUVKRW ZDWHU ZKHHO WR RQH VLGH DQG D VWHDP HQJLQH ZLWK DQ DWWDFKHG ERLOHU WR WKH RWKHU ,Q WKH HYHQW WKDW WKH VWHDP HQJLQH EURNH GRZQ ZDWHU FRXOG EH XVHG WR GULYH WKH PLOO $Q LQWHUHVWLQJ IHDWXUH RI WKH $UQRV 9DOH IDFWRU\ FRPSOH[ LV WKDW WKH WRS RI WKH ZDWHU ZKHHO LV KLJKHU WKDQ WKH HQG RI WKH FDQDO WKDW ZDV XVHG WR IHHG LW $OWKRXJK VHYHUDO VWDQFKLRQV WKDW ZRXOG KDYH VXSSRUWHG D VOXLFHZD\

PAGE 155

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

PAGE 156

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f VKRZV DQ XQODEHOHG FOXVWHU RI IRXU EXLOGLQJV RQ D KLOOWRS RQ ZKDW PD\ EH $UQRV 9DOH (VWDWH 7KLV PD\ LQGLFDWH WKDW DQ HVWDWH KRXVH FRPSOH[ LV SUHVHQW $OVR SUHVHQW RQ WKH &DUWH 0LOLWDLUH $QRQ\PRXV f VRXWKHDVW RI WKH SRVVLEOH HVWDWH KRXVH FRPSOH[ LV D OLQHDU DUUD\ RI IRXU VWUXFWXUHV ,I WKH KLOOWRS VWUXFWXUHV LGHQWLI\ WKH ORFDWLRQ RI WKH HVWDWH KRXVH WKHQ WKHVH PD\ UHSUHVHQW WKH HVWDWH YLOODJH ([WHQVLYH VXUIDFH LQVSHFWLRQ RI WKH OHQJWK RI WKH YDOOH\ IORRU WR WKH HDVW RI WKH HVWDWH KRXVH DQG WKH ULGJHV RQ HLWKHU VLGH UHYHDOHG QR HYLGHQFH RI D YLOODJH LQ WKHVH ORFDWLRQV KRZHYHU $UQRV 9DOH %D\ LQ WKH VRXWKHUQ SRUWLRQ RI WKH HVWDWH LV PHQWLRQHG E\
PAGE 157

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nV *HRJUDSKLFDO (VWDEOLVKPHQW f ,WV SUHVHQFH ZDV YHULILHG E\ ILHOG VXUYH\ 1R DUWLIDFWXDO PDWHULDOV GDWLQJ WR WKH SHULRG ZKHQ VXJDU ZDV SURGXFHG RQ WKH HVWDWH ZHUH SUHVHQW DGMDFHQW WR WKH DUFKLWHFWXUDO UHPDLQV SHUKDSV GXH WR HURVLRQ DQG FRQWLQXRXV UHXVH WKURXJK $OWHUQDWLYHO\ WKLV VWUXFWXUH PD\ SRVWGDWH VXJDU SURGXFWLRQ DOWKRXJK WKH XVH

PAGE 158

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

PAGE 159

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

PAGE 160

$ VXJDU IDFWRU\ FRPSOH[ LV ORFDWHG LQ WKH QRUWKHUQ SDUW RI WKH SURSHUW\ LQ D GLVWLQFW QDWXUDO GHSUHVVLRQ DGMDFHQW WR D YHU\ VPDOO VWUHDP 7KH SRZHU VRXUFH IRU WKLV IDFWRU\ LV XQGHWHUPLQHG
PAGE 161

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n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

PAGE 162

WKH ZKHHO SLW LV LQWDFW DV LV PRVW RI DQ DWWDFKHG WZR VWRU\ PLOO KRXVH 7KH 7VKDSHG VXJDU ZRUNV LV GHWDFKHG IURP WKH ZKHHO SLW DQG PLOO KRXVH $OWKRXJK WKH ERLOLQJ KRXVH KDV EHHQ ODUJHO\ GHVWUR\HG E\ FRQWLQXHG UHXVH DV D VXJDU PDQXIDFWXULQJ VLWH XQWLO (XEDQNV SHUVRQDO FRPPXQLFDWLRQf WKH FXULQJ KRXVH DQG VWLOO KRXVH DUH PRVWO\ LQWDFW ,Q DGGLWLRQ 0F7HDU QGf SURYLGHV D SODQ YLHZ RI WKH IDFWRU\ GUDZQ EHWZHHQ DQG VHH )LJXUH f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f WKRXJK WKH PDS LV WRR FUXGH WR EH SRVLWLYH 7KH KLOOWRS LV FXUUHQWO\ WKH VLWH RI D PRGHUQ KDELWDWLRQ $ VWRFNSLOH RI

PAGE 163

HLJKWHHQWK DQG QLQHWHHQWK FHQWXU\ EULFN LV RQ WKH SURSHUW\ WKRXJK QR LQ VLWX VWUXFWXUDO UHPDLQV ZHUH ORFDWHG 1RU ZDV WKH 3URYLGHQFH HVWDWH YLOODJH ORFDWHG %DVHG RQ WKH &DUWH 0LOLWDLUH $QRQ\PRXV f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

PAGE 164

LW KDV OLNHO\ EHHQ GHVWUR\HG E\ PRGHUQ FRQVWUXFWLRQ SRVVLEO\ RI WKH UHFUHDWLRQ KDOO LWVHOI )UDQNOYQnV (VWDWH )UDQNO\QnV (VWDWH LV ORFDWHG LQ WKH FHQWHU RI WKH VWXG\ DUHD DQG LV GRPLQDWHG E\ ORZ VWHHS KLOOV 7KH VRXWKHUQ DQG HDVWHUQ ERXQGDULHV RI WKH HVWDWH DUH IRUPHG E\ WKH &RXUODQG 5LYHU 7KH HOHYDWLRQ RI WKH HVWDWH UDQJHV IURP D ORZ RI PHWHUV DERYH VHD OHYHO WR D KLJK RI RYHU PHWHUV DERYH VHD OHYHO 7KH )UDQNO\QnV VXJDU IDFWRU\ FRPSOH[ LV LQ YHU\ SRRU FRQGLWLRQ ,W LV ORFDWHG RQ D VWHHS WULEXWDU\ RI WKH &RXUODQG 5LYHU FRXUVLQJ GRZQ D YHU\ QDUURZ YDOOH\ 7KH ODFN RI VXLWDEOH WHUUDLQ IRU EXLOGLQJ GLFWDWHG WKDW WKH GLVWLOOHU\ EH VLWHG VRPH PHWHUV GRZQVWUHDP IURP WKH ERLOLQJ KRXVH DQG FXULQJ KRXVH 7KH SRZHU IRU WKH VLWH ZDV GHULYHG IURP D VWHDP HQJLQH
PAGE 165

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

PAGE 166

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f 8QIRUWXQDWHO\ GLG QRW FRPH DFURVV WKLV WDOH XQWLO DIWHU KDG UHWXUQHG WR WKH 8QLWHG 6WDWHV $V D UHVXOW ,

PAGE 167

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

PAGE 168

ZDV SRZHUHG E\ DQ RYHUVKRW ZDWHU ZKHHO RQ WKH UHPDLQV RI ZKLFK FDQ EH UHDG : t $ 0F2QLH t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

PAGE 169

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
PAGE 170

KRXVH QRZ PRGLILHG EH\RQG UHFRJQLWLRQ RU FRPSOHWHO\ UHEXLOW .LQJ 3HWHUnV (VWDWH /RFDWHG LQ WKH QRUWKHDVW FRUQHU RI WKH VWXG\ DUHD .LQJ 3HWHUnV HVWDWH LV ERUGHUHG WR WKH ZHVW E\ WKH VHD 7KH HVWDWH LV FKDUDFWHUL]HG E\ YHU\ VWHHS VORSHV DQG D SUHFLSLWRXV GURS WR WKH VHD 2QO\ RQH SHUHQQLDO VWUHDP FURVVHV WKH SURSHUW\ RQ DQ HDVWZHVW D[LV 7KH VXJDU IDFWRU\ FRPSOH[ DVVRFLDWHG ZLWK .LQJ 3HWHUnV (VWDWH LV ORFDWHG DOPRVW RQ WKH EHDFK RI $QVH )ODPHQFR %D\ DQG LV RQH RI WKH VPDOOHVW RQ WKH LVODQG 7KH ZDOOV RI WKH ERLOLQJ KRXVH DUH SUHVHUYHG DOPRVW FRPSOHWHO\ DQG VKRZ HYLGHQFH RI H[WHQVLYH PRGLILFDWLRQ :LWK WKH H[FHSWLRQ RI D ZRUP WDQN QR RWKHU EXLOGLQJV QRUPDOO\ DVVRFLDWHG ZLWK D ZRUNV ZHUH IRXQG $FFRUGLQJ WR
PAGE 171

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nV +LOO LQ WKH VRXWKHDVWHUQ FRUQHU DQG PHWHUV DERYH VHD OHYHO DORQJ WKH &RXUODQG 5LYHU ZKLFK IRUPV WKH QRUWKHUQ ERXQGDU\ RI WKH HVWDWH ,Q DGGLWLRQ WR WKH ULYHU WKUHH SHUHQQLDO VWUHDPV FURVV WKH SURSHUW\ 7ZR VXJDU IDFWRU\ FRPSOH[HV ZHUH ORFDWHG RQ /RZHU 4XDUWHU (VWDWH %DVHG RQ FRQVWUXFWLRQ DQG SUHVHUYDWLRQDO GLIIHUHQFHV DQG FRQILUPHG E\ WKH &DUWH 0LOLWDLUH $QRQ\PRXV

PAGE 172

f WKH ROGHU RQH LV ORFDWHG RQ D VSXU LQ WKH HDVW FHQWUDO SRUWLRQ RI WKH SURSHUW\ 1HDUO\ FRPSOHWHO\ GHVWUR\HG WKH ROG IDFWRU\ FRPSOH[ LV UHSUHVHQWHG E\ WKH SDUWLDO EDVH RI D ZLQGPLOO WRZHU DQG GRZQVORSH D VXUIDFH VFDWWHU RI PDVRQU\ UXEEOH 7KH OD\RXW RI WKH FRPSOH[ ZDV QRW GHWHUPLQHG 7KH QHZHU IDFWRU\ LV ORFDWHG DSSUR[LPDWHO\ PHWHUV WR WKH ZHVW RQ D VSXU RYHUORRNLQJ WKH ODUJHVW SHUHQQLDO VWUHDP RQ WKH HVWDWH 7KLV FRPSOH[ LV NQRZQ DV 2JLOYLH $UFKLH +DOLID[ SHUVRQDO FRPPXQLFDWLRQf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

PAGE 173

RYHUORRNLQJ KLOOWRS WKDW ZRXOG KDYH EHHQ DQ LGHDO ORFDWLRQ $OWKRXJK QR VWUXFWXUDO RU DUWLIDFWXDO UHPDLQV ZHUH HQFRXQWHUHG WKH KLOOWRS VKRZV VLJQV RI WRSRJUDSKLF PRGLILFDWLRQ 7KH &DUWH 0LOLWDLUH $QRQ\PRXV f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f LQGLFDWHV WKDW LW PD\ KDYH EHHQ EHWZHHQ WKH ROG ZRUNV DQG WKH SRVVLEOH HVWDWH KRXVH ORFDWLRQ RQ WKH KLOO RYHUORRNLQJ WKH ROG ZRUNV 0DU\ V +LOO (VWDWH 0DU\nV +LOO (VWDWH LV DGMDFHQW WR /RZHU 4XDUWHU WR WKH ZHVW DQG RFFXSLHV D VLPLODU WRSRJUDSKLF VLWXDWLRQ 7KH QRUWKHUQ SRUWLRQ RI 0DU\nV +LOO LV FRPSRVHG RI WHUUDLQ VORSLQJ VWHHSO\ GRZQ WR WKH &RXUODQG 5LYHU 7KH FHQWUDO SRUWLRQ LV RFFXSLHG E\ UROOLQJ KLOOV IODQNLQJ WKH YDOOH\ RI WKH /LWWOH &RXUODQG 5LYHU 7KH VRXWKHUQ SRUWLRQ ULVHV WR DQ DUHD RI UHODWLYHO\ KLJK KLOOV WR WKH VRXWK 7KH PD[LPXP HOHYDWLRQ RI 0DU\nV +LOO LV PHWHUV DERYH VHD OHYHO LQ

PAGE 174

WKH VRXWKZHVW FRUQHU ZKLOH WKH PLQLPXP LV WR PHWHUV DERYH VHD OHYHO DORQJ WKH &RXUODQG 5LYHU WR WKH QRUWK 7KH UHPDLQV RI WKH 0DU\nV +LOO VXJDU IDFWRU\ FRPSOH[ ZHUH GHVWUR\HG LQ E\ KHDY\ HTXLSPHQW $ IHZ VFDWWHUHG FKXQNV RI VWRQH PDVRQU\ PDUN LWV ORFDWLRQ MXVW VRXWK RI WKH /LWWOH &RXUODQG 5LYHU $Q LPSRXQGPHQW DQG GLYHUVLRQ GDP LV ORFDWHG VRPH PHWHUV XSVWUHDP IURP WKH IDFWRU\ LQGLFDWLQJ WKDW LW PD\ KDYH EHHQ ZDWHU SRZHUHG 7KLV LV QRW FRQILUPHG E\
PAGE 175

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f 'XH WR WKH H[WUHPH UHOLHI DQG LQ WKH EHOLHI WKDW HVWDWH UHPDLQV ZRXOG EH DVVRFLDWHG ZLWK WKH WUDQVSRUWDWLRQ LQIUDVWUXFWXUH VXUIDFH VXUYH\ ZDV OLPLWHG WR WKHVH IHDWXUHV ZKHUH WKH\ DUH VWLOO LQWDFW $OWKRXJK VXUIDFH YLVLELOLW\ RQ WKH URDG DQG

PAGE 176

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

PAGE 177

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f $V PDQ\ DV %RXOWRQ DQG :DWW PLOOV ZHUH EXLOW EHWZHHQ DQG $W OHDVW RQH ZDV VKLSSHG WR 7REDJR 'HHUU f $OWKRXJK WKH KRUL]RQWDO FUXVKLQJ PLOO KDV IDOOHQ WKURXJK LWV IRXQGDWLRQ LW WRR LV ODUJHO\ LQWDFW $VLGH IURP WKH SUHVHQFH RI WKH VWHDP HQJLQH PDQ\ GHVLJQ IHDWXUHV PDNH WKLV D VLJQLILFDQW VLWH )LUVW UDWKHU WKDQ FRQVWUXFWLQJ WKH GDPSHU RSHQLQJV EHQHDWK WKH FRSSHUV

PAGE 178

RXW RI EULFN LQ WKH IRUP RI DQ DUFK DV ZDV GRQH DW DOO RWKHU NQRZQ ZRUNV WKH 5XQQHPHGH QHZ ZRUNV RSHQLQJV ZHUH VXSSRUWHG E\ FDVW LURQ GHYLFHV 6HFRQG WKH FRUQHUV RI WKH ZRUP WDQN VLPLODU WR WKRVH DW WKH 2JLOYLH ZRUNV DUH VLJQLILFDQWO\ OHVV URXQGHG WKDQ LV WKH QRUP )LQDOO\ D PXOWLFKDPEHUHG SLHFH RI PDFKLQHU\ LV SUHVHQW LQ WKH UHPDLQV RI WKH ERLOLQJ KRXVH %HQMDPLQnV GHVFULSWLRQ RI WKH PDFKLQHU\ XVHG LQ WKH -XOLXV 5REHUW GLIIXVLRQ SURFHVV LV PXFK PRUH FRJHQW $ VHULHV RI WDOO F\OLQGHUV FRQQHFWHG E\ SLSHV ILOOHG ZLWK WKLQO\VOLFHG FDQHV DQG ZDWHU f 7KH FDQHV DQG ZDWHU DUH VWHDP KHDWHG LQ WKH F\OLQGHUV WR DSSUR[LPDWHO\ F PDNLQJ WKH VXJDU GLIIXVH IURP WKH FDQHV LQWR WKH ZDWHU +\GUDXOLF SUHVVXUH FDXVHG E\ WKH SURFHVV IRUFHV WKH UHVXOWDQW VXJDU ULFK VROXWLRQ IURP WKH SURFHVVRU LQWR D UHFHLYLQJ SDQ DQG PXVFRYDGR VXJDU LV UHQGHUHG E\ WKH XVXDO ERLOLQJ SURFHVV %HQMDPLQ f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

PAGE 179

PDVRQU\ IRXQGDWLRQ SURWUXGLQJ IURP EHQHDWK D PRGHUQ KRXVH 7KH ODWWHU VWUXFWXUH KDV PRVWO\ REVFXUHG WKH VLWH $ VLQJOH WRPE ZDV ORFDWHG RQ D SURPLQHQW KLOOWRS MXVW VRXWK RI WKH LPSRXQGPHQW DQG GLYHUVLRQ GDP $OWKRXJK WKH GDWHV ZHUH XQUHDGDEOH WKH QDPH &KULVWRSKHU :LOOLDP ,UYLQH LV YLVLEOH RQ D VODWH VODE 0V -HVPD 0DF)DUODQH SHUVRQDO FRPPXQLFDWLRQf VXSSRUWHG E\ IRXU SLOODUV PDUNLQJ WKH WRPE ,UYLQH RZQHG WKH HVWDWH LQ
PAGE 180

DQG KDV EHHQ H[WHQVLYHO\ GLVWXUEHG E\ PRGHUQ KRXVH FRQVWUXFWLRQ $OWKRXJK WKH OD\RXW RI WKH ZRUNV ZDV QRW GHWHUPLQHG WKH :KLP PLOO ZDV ZLQG SRZHUHG 7KH FLUFXODU EDVH RI D PDVRQU\ ZLQGPLOO WRZHU LV ORFDWHG OHVV WKDQ PHWHUV HDVW RI WKH ZRUNV EXLOGLQJV ,W KDV EHHQ LQFRUSRUDWHG LQWR D QHZ KRXVH DQG PD\ KDYH EHHQ WUXQFDWHG E\ WKH PRGHUQ FRQVWUXFWLRQ
PAGE 181

7KH :KLP FRPSOH[ LV DOVR GHSLFWHG RQ WKH &DUWH 0LOLWDLUH $QRQ\PRXV f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nV *HRJUDSKLFDO (VWDEOLVKPHQW f PDS RI 7REDJR D ZRUNV H[LVWHG RQ WKH IODW DUHD LPPHGLDWHO\ WR WKH QRUWK RI WKH GDP DW WKH WLPH WKH PDS ZDV PDGH 7KLV ZDV FRQILUPHG E\ D ORFDO LQIRUPDQW ZKR SOD\HG LQ WKH UXLQV DV D FKLOG LQ WKH V $Q ROGHU LQIRUPDQW UHPHPEHUV JHWWLQJ ZHW VXJDU IURP

PAGE 182

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nV %D\ LQ WKH QRUWKFHQWUDO SDUW RI WKH VWXG\ DUHD 7KLV SURSHUW\ ZDV QRW FODLPHG E\ DQ\ SODQWDWLRQ
PAGE 183

$Q LVODQG DW WKH PRXWK RI WKH &RXUODQG 5LYHU ZDV EHHQ WHQWDWLYHO\ LGHQWLILHG DV %HOOH ,VOH E\ D ORFDO DPDWHXU KLVWRULDQ %HOOH ,VOH LV OLVWHG E\ :RRGFRFN $SSHQGL[ f DV EHLQJ LQ 6W 'DYLGn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nV UHVLGHQFH :LWKLQ WKH VWXG\ DUHD LW LV XQLTXH EHLQJ WKH RQO\ SUREDEOH DUWLVDQnV UHVLGHQFH LGHQWLILHG ,W LV VLPLODU LQ VL]H DQG OD\RXW WR WKH VHYHUDO QLQHWHHQWK FHQWXU\ UHVLGHQFHV LQ 3O\PRXWK WKDW KDYH EHHQ SUHVHUYHG 7KH RZQHU RI %HOOH ,VOH LV LGHQWLILHG E\ :RRGFRFN DW WKH WLPH RI KLV ZULWLQJ DV 7 0DFIDUODQH

PAGE 184

$SSHQGL[ f 1R RWKHU PHQWLRQ RI %HOOH ,VOH ZDV HQFRXQWHUHG LQ WKH GRFXPHQWV 6XPPDU\ RI 5HJLRQDO 6XUYH\ 7ZHQW\WZR VXJDU HVWDWHV H[LVWHG LQ WKH VWXG\ DUHD LQ FRYHULQJ DQ DYHUDJH DUHD RI DFUHV 7KHVH HVWDWHV SURGXFHG DQ DYHUDJH RI KRJVKHDGV RI VXJDU DQG SXQFKHRQV RI UXP XVLQJ VODYHV 7ZHOYH RI WKH HVWDWH RZQHUV OLYHG RQ WKH LVODQG ZKLOH WHQ RI WKH HVWDWHV KDG DEVHQWHH RZQHUV
PAGE 185

IDFWRULHV ZHUH GLVFRQWLJXRXV :LWK RQH H[FHSWLRQ &RXUODQG (VWDWH GLVFXVVHG LQ &KDSWHU f DOO IDFWRULHV ZHUH ORFDWHG DGMDFHQW WR D ZDWHU VRXUFH VXIILFLHQW WR SURYLGH ZDWHU IRU UXP SURGXFWLRQ $V D UHVXOW LQ DUHDV RI KLJK WRSRJUDSKLF UHOLHI WKH\ DUH JHQHUDOO\ FRQILQHG WR YDOOH\ ERWWRPV RU EURDG YDOHV ,Q DGGLWLRQ VXJDU IDFWRULHV ZHUH ORFDWHG ZLWK DQ H\H WRZDUGV WUDQVSRUW 7KLV ZDV DFFRPSOLVKHG E\ EHLQJ FORVH WR WKH FRDVW RU QHDU D URDG ZLWK DFFHVV WR VKLSSLQJ SRLQWV ,Q WKH ODWWHU FDVH EHFDXVH VXJDU PRODVVHV DQG UXP ZHUH KDXOHG LQ ODUJH KHDY\ TXDQWLWLHV URDGV ZHUH URXWHG VR DV WR PLQLPL]H FOLPEV EHWZHHQ IDFWRULHV DQG WKH VHD ,Q FRQWUDVW WR VXJDU IDFWRULHV HVWDWH KRXVHV WHQG WR EH ORFDWHG RQ HOHYDWHG ODQGIRUPV )URP D IXQFWLRQDO SHUVSHFWLYH VXFK ORFDWLRQV JDYH DFFHVV WR EUHH]HV WKDW ERWK FRROHG DQG SURPRWHG KHDOWK E\ OLPLWLQJ WKH LQVHFW SRSXODWLRQ (VWDWH KRXVHV ZHUH FRQVWUXFWHG RQ HOHYDWHG RIWHQ GHFRUDWHG SLHUV WR WDNH IXUWKHU DGYDQWDJH RI WKHLU ORFDWLRQV $Q HOHYDWHG VLWXDWLRQ DOVR SURYLGHG D JRRG YLHZ RI WKH VXJDU HVWDWH LQFOXGLQJ WKH IDFWRU\ DQG SUREDEO\ WKH HVWDWH YLOODJH DV ZHOO DOWKRXJK WRR IHZ RI WKH ODWWHU ZHUH ORFDWHG E\ WKH VXUYH\ WR ILUPO\ HVWDEOLVK WKLV IDFW

PAGE 186

&+$37(5 5(68/76 2) ,17(16,9( 6859(< $OWKRXJK H[WHQVLYH VXUYH\ WKURXJKRXW 6W 'DYLGn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f &RXUODQG (VWDWH &RXUODQG )LJXUH f LV WKH ZHVWHUQPRVW HVWDWH LQ WKH VWXG\ DUHD &RPSULVHG SULPDULO\ RI 6W 'DYLGnV 3DULVK ORW LW DOVR LQFRUSRUDWHV ORWV DQG RI 6W 3DWULFNnV 3DULVK DQG FRYHUV DQ DUHD RI DFUHV
PAGE 187

)LJXUH f§ &RXUODQG (VWDWH &RXUODQG (VWDWH &RXUODQG 5WmW 6HRRQGDU\ DWUHDP 3ULPDU\ URDG 6HFRQGDU\ URDG 6WUXHWXUD 1 P RRQWRXUR

PAGE 188

5LYHU RQ WKH ZHVW E\ WKH &DULEEHDQ 6HD RQ WKH HDVW E\ /RZHU 4XDUWHU (VWDWH DQG RQ WKH VRXWK E\ *UDIWRQ (VWDWH SDUW RI 6W 3DWULFNnV 3DULVK 7KH WHUUDLQ RFFXSLHG E\ &RXUODQG (VWDWH FRQVLVWV RI ORZ UROOLQJ KLOOV RI LQFUHDVLQJ VWHHSQHVV WRZDUGV WKH HDVWHUQ ERUGHU RI WKH HVWDWH 7KH PD[LPXP HOHYDWLRQ RQ WKH HVWDWH LV MXVW RYHU PHWHUV DERYH VHD OHYHO LQ WKH H[WUHPH VRXWKHDVWHUQ FRUQHU $V SUHYLRXVO\ GLVFXVVHG &KDSWHUV DQG f 6W 'DYLGnV 3DULVK ORW WKH FRUH RI &RXUODQG (VWDWH ZDV WKH ILUVW WR EH ERXJKW DW WKH ODQG VDOHV GXULQJ 7REDJRnV LQLWLDO VHWWOHPHQW E\ WKH %ULWLVK :DWHU RQ &RXUODQG (VWDWH LV SOHQWLIXO ,Q DGGLWLRQ WR WKH &RXUODQG 5LYHU IRUPLQJ WKH QRUWKHUQ ERXQGDU\ WZR SHUHQQLDO VWUHDPV FURVV WKH SURSHUW\ DORQJ D VRXWKHDVWWR QRUWKZHVW D[LV 7KH PRUH QRUWKHUO\ RI WKH WZR SUREDEO\ FRQWDLQHG WKH PRVW ZDWHU KLVWRULFDOO\ DV LW VXSSRUWHG DW OHDVW RQH DQG SRVVLEO\ WZR ZDWHU ZKHHOV GXULQJ WKH QLQHWHHQWK FHQWXU\ VHH GHVFULSWLRQ RI /RZHU 4XDUWHU DQG 0DU\nV +LOO (VWDWHV &KDSWHU f QHLWKHU RI ZKLFK ZDV DVVRFLDWHG ZLWK &RXUODQG (VWDWH 7KH VRXWKHUQ VWUHDP DSSUR[LPDWHO\ SDUDOOHOV WKH VRXWKHUQ ERXQGDU\ RI 6W 'DYLGnV 3DULVK ORW $OWKRXJK PXFK RI WKH ZDWHUFRXUVH LV GU\ WRGD\ LW LV VSULQJIHG IURP D SRLQW MXVW LQVLGH WKH ORW ERXQGDU\ 6XUIDFH ZDWHU ZDV DYDLODEOH DW WKH VSULQJKHDG HYHQ GXULQJ WKH KHLJKW RI WKH GU\ VHDVRQ :KLOH

PAGE 189

VHYHUDO RWKHU ZDWHUFRXUVHV DUH DSSDUHQW RQ WKH SURSHUW\ QRQH FDUULHV VLJQLILFDQW DPRXQWV RI ZDWHU WRGD\ 3UHYLRXV 5HVHDUFK (XEDQNV f FRQGXFWHG VXUYH\ DQG OLPLWHG WHVWLQJ DW WKH VLWH RI WKH &RXUODQG (VWDWH VXJDU IDFWRU\ FRPSOH[ ORFDWHG LQ WKH QRUWKZHVW SRUWLRQ RI WKH (VWDWH LQ DV SDUW RI D GHYHORSPHQW SODQ IRU WKH SURSHUW\ 7KH IROORZLQJ GHVFULSWLRQ LV GHULYHG IURP (XEDQNV f DQG IURP WKH /DXJKOLQ DQG $VVRFLDWHV f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

PAGE 190

7KH UHPDLQV RI D VHFRQG UHVLGHQWLDO VWUXFWXUH DUH ORFDWHG VOLJKWO\ XSVORSH DQG VRPH PHWHUV QRUWKZHVW RI WKH FRQYHUWHG ZLQGPLOO WRZHU 7KH EXLOGLQJ SUREDEO\ ZRRGHQ ZDV FRQVWUXFWHG DWRS SLHUV RI EULFN DQG FXW FRUDO ZKLFK DUH VWLOO H[WDQW DQG VWDQG DSSUR[LPDWHO\ WZR PHWHUV KLJK 7KH VWUXFWXUH LV W\SLFDO RI HLJKWHHQWK DQG QLQHWHHQWK FHQWXU\ HVWDWH KRXVHV WKURXJKRXW WKH LVODQG 7KH GLPHQVLRQV RI WKH VWUXFWXUH ZHUH DSSUR[LPDWHO\ E\ PHWHUV E\ IHHWf /DWHU UHQRYDWLRQV DUH LQGLFDWHG E\ WKH SUHVHQFH RI DQ DUFKHG VWDLUZD\ DQG DGGLWLRQDO SLHUV FRQVWUXFWHG RI FRQFUHWH 7R WKH EDFN RI WKH VWUXFWXUH LH WR WKH QRUWKZHVWf LV D OLJKW VFDWWHU RI HXURSHDQ UHILQHG HDUWKHQZDUHV 7KH ILQDO PDMRU DUFKLWHFWXUDO FRPSRQHQW RI WKH &RXUODQG IDFWRU\ FRPSOH[ LV WKH 7VKDSHG VXJDU IDFWRU\ LWVHOI ORFDWHG DSSUR[LPDWHO\ PHWHUV VRXWK RI WKH FRQYHUWHG ZLQGPLOO WRZHU (QFRPSDVVLQJ VRPH VTXDUH PHWHUV VTXDUH IHHWf WKH &RXUODQG VXJDU IDFWRU\ LV WKH VHFRQG ODUJHVW NQRZQ WR H[LVW RQ WKH LVODQG (XEDQNV SHUVRQDO FRPPXQLFDWLRQ 0D\ f )LJXUH f 7KH ORQJ D[LV RI WKH ERLOLQJ KRXVH RULHQWHG URXJKO\ QRUWKZHVWWRVRXWKHDVW DQG IRUPLQJ WKH EDVH RI WKH 7 PHDVXUHV PHWHUV IHHWf LQ OHQJWK DQG LV QLQH PHWHUV IHHWf ZLGH :KLOH (XEDQNV f K\SRWKHVL]HV WKDW WKH ERLOLQJ KRXVH FRXOG KDYH VXSSRUWHG XS WR WZR MDPDLFD WUDLQV HYLGHQFH RI RQO\ RQH LQ WKH IRUP RI D VWULNH SDQ NQRZQ WR KDYH H[LVWHG LQ WKH

PAGE 191

&RXUODQG 6XJDU )DFWRU\ PHWH )LJXUH % &RXUODQG 6XJDU )DFWRU\

PAGE 192

H[WUHPH VRXWKZHVWHUQ FUQHU RI WKH EXLOGLQJ LV DYDLODEOH 7RGD\ PXFK RI WKH ZHVWHUQ ZDOO DORQJ ZKLFK WKH WUDLQVf ZRXOG KDYH UXQ LV WDNHQ XS E\ D FRSUD GU\LQJ SODQW GDWLQJ WR WKH PLGWK FHQWXU\ $ EULFN FKLPQH\ VRPH WR PHWHUV DSSUR[LPDWHO\ IHHWf WDOO VWDQGV DW WKH QRUWKHUQ HQG RI WKLV ZDOO RQ WKH H[WHULRU RI WKH EXLOGLQJ 7KH WRS RI WKH 7VKDSHG VXJDU IDFWRU\ ORFDWHG DW WKH HQG RI WKH ERLOLQJ KRXVH IXUWKHVW IURP WKH FRQYHUWHG ZLQGPLOO LV GLYLGHG LQWR WKUHH URRPV RI URXJKO\ HTXDO VL]H DQG LV RQH VWRU\ ORZHU WKDQ WKH ERLOLQJ KRXVH 7RJHWKHU WKH WKUHH URRPV PHDVXUH PHWHUV IHHWf ORQJ E\ PHWHUV IHHWf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

PAGE 193

ILOOLQJ D VPDOO WDQN IRU KRXVHKROG XVH EHWZHHQ WKH WZR ODUJHU ZLQGPLOOV RYHUIORZ ZDV WUDQVIHUUHG WKURXJK D QDUURZ EULFNOLQHG JXWWHU WR DQ DQJXODU VWRUDJH WDQN PLGZD\ EHWZHHQ WKH FRQYHUWHG ZLQGPLOO DQG WKH IDFWRU\ LWVHOI -XVW HDVW RI WKH ZDWHU VWRUDJH WDQN LV D FLUFXODU JUDYLW\ IHG FODULI\LQJ WDQN IRU FDQH MXLFH IURP WKH WZR PLOOV XVHG IRU JULQGLQJ FDQH 7R WKH ZHVW RI WKH ZDWHU VWRUDJH WDQN LV D EDJDV GXPS ZKHUH FUXVKHG FDQH ZDV GULHG IRU ODWHU EXUQLQJ LQ WKH IXUQDFH EHORZ WKH WUDLQ ,Q DGGLWLRQ WR WKH DUFKLWHFWXUDO HOHPHQWV GLVFXVVHG DERYH WKH UHPDLQV RI VHYHUDO IXQFWLRQDOO\ XQLGHQWLILHG VWUXFWXUHV DUH SUHVHQW 7KUHH DUH ORFDWHG MXVW ZHVW RI WKH IDFWRU\ DQG VRXWKZHVW RI WKH HVWDWH KRXVH (XEDQNV f SRVWXODWHV WKDW WKHVH PD\ KDYH EHHQ UHVLGHQWLDO VWUXFWXUHV RFFXSLHG E\ WKH VODYH GULYHUV $ IRXUWK IXQFWLRQDOO\ XQLGHQWLILHG VWUXFWXUH LV ORFDWHG VRXWK RI WKH IDFWRU\ EXLOGLQJV DQG FORVH WR WKH VSULQJIHG VWUHDP ZKLFK IORZV DORQJ WKH VRXWKZHVW ERUGHU RI 6W 'DYLGnV 3DULVK ORW )LQDOO\ WKH UHPDLQV RI WZR GDPV WKDW LPSRXQGHG ZDWHU LQ WKLV VWUHDP DUH DOVR H[WDQW $GGLWLRQDO 5HVHDUFK %HFDXVH LW ZDV XQGHUWDNHQ DV SDUW RI D GHYHORSPHQW SURMHFW (XEDQNVn UHVHDUFK ZDV OLPLWHG WR WKH DUHD LPPHGLDWHO\ VXUURXQGLQJ WKH &RXUODQG VXJDU IDFWRU\ FRPSOH[ (XEDQNV f (XEDQNV ZDV DZDUH KRZHYHU WKDW

PAGE 194

DGGLWLRQDO HOHPHQWV H[LVWHG RXWVLGH RI KLV VWXG\ DUHD 7KLV ZDV FRQILUPHG E\ VHYHUDO LQGLYLGXDOV VSRNHQ WR E\ ERWK (XEDQNV DQG P\VHOI 1RQH KRZHYHU FRXOG FRQYH\ PRUH WKDQ D YDJXH XQGHUVWDQGLQJ DERXW ZKHUH H[DFWO\ WKHVH HOHPHQWV ZHUH WR EH IRXQG $V SDUW RI WKH LQWHQVLYH VXUYH\ RI WKH &RXUODQG SURSHUW\ DOO DYDLODEOH PDSV ZHUH FRQVXOWHG IRU HYLGHQFH RI DGGLWLRQDO VWUXFWXUHV 7KH &DUWH 0LOLWDLUH $QRQ\PRXV f FOHDUO\ VKRZV HLJKW VWUXFWXUHV WKUHH RI ZKLFK DUH FLUFXODU LQ URXJKO\ WKH ORFDWLRQ LGHQWLILHG E\ (XEDQNV DV WKH VXJDU IDFWRU\ FRPSOH[ ,Q DGGLWLRQ LW VKRZV WKH PDLQ URDG IURP 6FDUERURXJK WR 3O\PRXWK UXQQLQJ WR WKH VRXWKHDVW IURP WKH FRPSOH[ D URDG ZKLFK LV DEDQGRQHG DQG RYHUJURZQ WRGD\ 7KH PDS DOVR GHSLFWV PDQ\ VWUXFWXUHV VRPHZKDW WR WKH VRXWKHDVW RI WKH FRPSOH[ DQG VRXWK RI WKH URDG )XUWKHVW WR WKH VRXWKHDVW DUH WZR ODUJH UHFWDQJXODU VWUXFWXUHV DFFHVVHG E\ D VKRUW GULYH OHDGLQJ RII IURP WKH 3O\PRXWK6FDUERURXJK 5RDG -XVW QRUWKZHVW RI WKHP WKH HVWDWH YLOODJH FRQVLVWLQJ RI VPDOOHU VWUXFWXUHV LV LQGLFDWHG 7KH VWUXFWXUHV RI WKH HVWDWH YLOODJH DUH DUUDQJHG LQ VHYHUDO VOLJKWO\ FXUYHG URZV RULHQWHG URXJKO\ SDUDOOHO ZLWK WKH 3O\PRXWK6FDUERURXJK 5RDG $ VXUIDFH DQG VXEVXUIDFH VXUYH\ XWLOL]LQJ E\ FHQWLPHWHU WHVW SLWV H[WHQVLYH FOHDULQJ DQG LQWHQVLYH VXUIDFH LQVSHFWLRQ ZDV FRQGXFWHG LQ WKH DUHD LQGLFDWHG E\ WKH &DUWH 0LOLWDLUH $QRQ\PRXV f 7KH VXUYH\

PAGE 195

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

PAGE 196

)LJXUH &RXUODQG (VWDWH 9LOODJH DQG 2OG (VWDWH +RXVH &RPSOH[ 6HRFPGDU\ VWUHDP 7UDFH $EDQGRQHG WUDFH 'ULYH 6WUXFWXUH )HDWXUH .[RDYDWORQ XQLW 6WUXFWXUH H[RDYDWORQH $&-f P HRQWRXUH &RXUODQG (VWDWH 9LOODJH DQG 2OG (VWDWH +RXDH &RPSOH[

PAGE 197

f HLJKW QXPEHUV f DUH RULHQWHG WR 1t( DV LV WKH WRPE 6WUXFWXUH PHDVXULQJ DSSUR[LPDWHO\ E\ PHWHUV E\ IHHWf LV WKH ODUJHVW RI WKH VWUXFWXUHV LQ $UHD DQG LV ORFDWHG DW WKH WHUPLQDWLRQ RI WKH GULYH )LJXUH f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

PAGE 198

&RXUODQG (VWDWH 2OG (VWDWH +RXVH 'RXEOHf§DUFKHG DUWDLUZD\ %ULFN H]]]]]]]M 0DVRQU\ L PHWHUV )LJXUH f§ &RXUODQG 2OG (VWDWH +RXVH

PAGE 199

6WUXFWXUH LV ORFDWHG DSSUR[LPDWHO\ PHWHUV VRXWKZHVW RI WKH HVWDWH KRXVH $OWKRXJK WKH EDVDO IRXQGDWLRQ RI WKH VWUXFWXUH LV FRQVWUXFWHG RI PDVRQU\ LW LV FDSSHG E\ D FRXUVH RI EULFN DW IORRU OHYHO 7KH HQWLUH LQWHULRU RI WKH EXLOGLQJ DSSHDUV WR KDYH EHHQ IORRUHG ZLWK EULFN RU UHG FHUDPLF WLOHV $ EULFN UXEEOH SLOH DORQJ WKH LQWHULRU RI WKH QRUWKZHVWHUQ ZDOO PD\ LQGLFDWH WKH SUHVHQFH RI RYHQV ZKLOH WKH EDVH RI D EULFN FKLPQH\ LV SUHVHQW DEXWWLQJ WKH ZHVWHUQ FRUQHU RI WKH EXLOGLQJ %DVHG RQ LWV SUR[LPLW\ WR WKH HVWDWH KRXVH WKH ILUHUHWDUGDQW PDWHULDOV XVHG LQ LWV FRQVWUXFWLRQ DQG WKH SRVVLEOH SUHVHQFH RI RYHQV 6WUXFWXUH LV WHQWDWLYHO\ LGHQWLILHG DV D NLWFKHQ 7KH UHPDLQLQJ HLJKW VWUXFWXUHV LQ $UHD DUH IXQFWLRQDOO\ XQLGHQWLILHG 6WUXFWXUHV DUH DOLJQHG OLNH 6WUXFWXUHV DQG DQG WKH WRPE WR D EHDULQJ RI 1EH ZKLOH 6WUXFWXUH LV RULHQWHG WR 1EH DQG 6WUXFWXUH LV RULHQWHG WR 1( :KLOH IRXU RI WKH VWUXFWXUHV DUH PDUNHG E\ EULFN DQG PDVRQU\ SLHUV 6WUXFWXUHV DQG f WKH UHPDLQGHU KDYH FRQWLQXRXV IRXQGDWLRQV SULPDULO\ FRQVWUXFWHG RI VWRQH PDVRQU\ 2I WKH ODWWHU RQH 6WUXFWXUH f FRPELQHV D FRQWLQXRXV IRXQGDWLRQ ZLWK EULFNDQGPDVRQU\ SLHUV DW WKH FRUQHUV ULVLQJ WR D KHLJKW RI DSSUR[LPDWHO\ WZR PHWHUV $ VHFRQG 6WUXFWXUH f KDV FRUQHUV FRQVWUXFWHG RI FXWFRUDO EORFNV 7KH GLPHQVLRQV RI 6WUXFWXUHV WR UDQJH IURP IRXU E\ IRXU PHWHUV E\ IHHWf§6WUXFWXUH f WR E\ PHWHUV E\ IHHWf§6WUXFWXUH f $ VPDOO EORFN RI

PAGE 200

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f ZLWK D FRQWLQXRXV IRXQGDWLRQ PHDVXULQJ E\ PHWHUV E\

PAGE 201

IHHWf /LNH PRVW RI WKH VWUXFWXUHV LQ $UHD 6WUXFWXUH LV RULHQWHG WR 1( ,W ZDV FRQVWUXFWHG ZLWK D SDLU RI WDQNV LQ WKH QRUWKHDVWHUQ HQG ZLWK LQWHULRU GLPHQVLRQV RI WKUHH E\ PHWHUV WHQ E\ VL[ IHHWf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f ZDV WHQWDWLYHO\ GHILQHG DV D IHDWXUH ZKLOH WKH EDVH RI D EULFN SLHU DQG D FRUDO ZDWHU ILOWHU ZHUH DOVR ORFDWHG $OO IHDWXUHV ZHUH QXPEHUHG VHTXHQWLDOO\ )RUW\ WHVW SLWV ZHUH H[FDYDWHG DW PHWHU LQWHUYDOV ZLWKLQ $UHD 7KH LQLWLDO UHVHDUFK GHVLJQ FDOOHG IRU D WLJKWHU LQWHUYDO ZLWKLQ WKLV WKH PDLQ SRUWLRQ RI WKH HVWDWH 1LQH VLPLODU IHDWXUHV DUH ORFDWHG LQ WKH QRUWKZHVWHUQ SRUWLRQ RI $UHD

PAGE 202

YLOODJH *LYHQ WKH GHVFULSWLRQV RI VODYH KRXVLQJ RQ 7REDJR DYDLODEOH LQ WKH OLWHUDWXUH VHH &KDSWHU f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

PAGE 203

SRVVLEOH VWUXFWXUH ZHUH HQFRXQWHUHG 'HVLJQDWHG 6WUXFWXUHV $ % DQG & UHVSHFWLYHO\ WKHVH DUH GHVFULEHG EHORZ )LJXUH f 7KH WRS RI WKH IRXQGDWLRQ RI 6WUXFWXUH $ ZDV HQFRXQWHUHG DW D GHSWK RI OHVV WKDQ ILYH FHQWLPHWHUV EHORZ VXUIDFH DQG H[WHQGV WR D GHSWK RI FHQWLPHWHUV 7KH ZDOOV RI WKH IRXQGDWLRQ DUH FRQVWUXFWHG SULPDULO\ RI SRRUO\ PRUWDUHG VWRQH ZLWK VRPH EULFNV DQG EULFN IUDJPHQWV LQFOXGHG ZKLOH WKH RQH FRUQHU WKDW ZDV H[SRVHG LV H[FOXVLYHO\ RI EULFN 7KH DYHUDJH ZLGWK RI WKH IRXQGDWLRQ ZDOOV LV DSSUR[LPDWHO\ FHQWLPHWHUV DQG HIIRUWV ZHUH PDGH E\ WKH EXLOGHUVf WR FUHDWH D XQLIRUP IDFH RQ WKH H[WHULRU 7KH VWUXFWXUH LWVHOI LV TXLWH VPDOO PHDVXULQJ RQO\ PHWHUV IHHWf DFURVV E\ PHWHUV IHHWf ORQJ 7KLV LV VLPLODU LQ VL]H WR D VWUXFWXUH H[FDYDWHG E\ $UPVWURQJ DW WKH 'UD[ +DOO 3ODQWDWLRQ -DPDLFD HVWDWH YLOODJH D VWUXFWXUH WKDW ZDV WHQWDWLYHO\ LGHQWLILHG DV D VWRUDJH VKHG $UPVWURQJ f 7KH ORQJ D[LV RI 6WUXFWXUH $ LV RULHQWHG WR 1( 2QO\ WKUHH ZDOOV DUH SUHVHQW WKH QRUWKZHVW HQG RI WKH VWUXFWXUH ZDV OHIW RSHQ 7KH IRXQGDWLRQ DVVRFLDWHG ZLWK 6WUXFWXUH % ZDV LQLWLDOO\ HQFRXQWHUHG DW D GHSWK RI FHQWLPHWHUV EHORZ VXUIDFH WHUPLQDWLQJ DW D GHSWK RI FHQWLPHWHUV EHORZ VXUIDFH 7KH H[SRVHG VHFWLRQV RI WKH IRXQGDWLRQ DUH *LYHQ WKH YHU\ VPDOO SRUWLRQ RI WKH 6WUXFWXUH & IRXQGDWLRQ H[SRVHG E\ H[FDYDWLRQ LW LV QRW GHSLFWHG LQ )LJXUH

PAGE 204

&RXUODQG (VWDWH 9LOODJH 6WUXFWXUHV $ DQG % )LJXUH % &RXUODQG (VWDWH 9LOODJH 6WUXFWXUHV $ DQG %

PAGE 205

FRPSRVHG RI EULFN DQG DQJXODU WR VXEDQJXODU FREEOHV 1R FRUQHUV ZHUH HQFRXQWHUHG DQG WKH EXLOGLQJ PDWHULDO XVHG LQ WKHLU FRQVWUXFWLRQ LV XQNQRZQ ,Q FRQMXQFWLRQ ZLWK WKH SDUWLDO H[FDYDWLRQ RI 6WUXFWXUH % SURELQJ ZDV XQGHUWDNHQ WR GHWHUPLQH WKH VKDSH DQG VL]H RI WKH VWUXFWXUH 3URELQJ LQGLFDWHV WKDW WKH IRXQGDWLRQ PHDVXUHV PHWHUV E\ PHWHUV E\ IHHWf DQG KDV DQ LQWHULRU IRXQGDWLRQ ZDOO ZKLFK ZDV SDUWLDOO\ H[SRVHG E\ H[FDYDWLRQ GLYLGLQJ LW LQWR WZR VTXDUH URRPV RI HTXDO VL]H 7KH H[WHULRU ZDOOV RI WKH IRXQGDWLRQ DUH IDFHG RQ WKH RXWVLGH ZKLOH WKH SDUWLWLRQLQJ ZDOO LV GRXEOHIDFHG 7KH GRZQVORSH VRXWKZHVWf IRXQGDWLRQ ZDOO LV VRPHZKDW PRUH PDVVLYHO\ FRQVWUXFWHG WKDQ WKH WKUHH XSVORSH ZDOOV 7KH RULHQWDWLRQ RI WKH ORQJ D[LV RI WKH VWUXFWXUH LV 12( 7KH UHPDLQV RI 6WUXFWXUH % FRQIRUP ZHOO WR D GHVFULSWLRQ RI VODYH KRXVLQJ SURYLGHG WR 6LU :LOOLDP
PAGE 206

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f QRWHV WKDW ERXOGHUV DQG

PAGE 207

ODUJH VWRQHV DUH D FRPPRQ IHDWXUH RI HVWDWH YLOODJHV RIWHQ XVHG DV RXWGRRU IXUQLWXUH E\ WKH YLOODJH LQKDELWDQWV $UHD $UWLIDFWV 6KRYHO WHVWLQJ LQ $UHD \LHOGHG DUWLIDFWV 7KH\ DUH GLYLGHG LQWR DUFKLWHFWXUDO (XURSHDQ FHUDPLF XQJOD]HG FRDUVH HDUWKHQZDUH DQG ERWWOH JODVV FDWHJRULHV $UFKLWHFWXUDO UHPDLQV LQFOXGLQJ EULFN PRUWDU VODWH UHGZDUH FHUDPLF URRILQJ WLOHV ZLQGRZ JODVV DQG QDLOV PDNH XS WKH EXON RI WKH FROOHFWLRQ Q bf ZLWK EULFN IUDJPHQWV EHLQJ WKH PRVW FRPPRQ Q f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f %RWWOH JODVV PDNHV XS WKH QH[W ODUJHVW FDWHJRU\ RI DUWLIDFW IURP WKH YLOODJH WHVW SLWV Q bf 2OLYH 6HYHUDO DGGLWLRQDO DUWLIDFWV ZKLFK GR QRW ILW LQWR DQ\ RI WKHVH FDWHJRULHV ZHUH DOVR UHFRYHUHG GXULQJ WKH WHVW SLW VXUYH\ 7KHVH DUH GLVFXVVHG DV D JURXS EHORZ DORQJ ZLWK VLPLODUO\ XQFDWHJRUL]HG DUWLIDFWV IURP RWKHU FRQWH[WV

PAGE 208

JODVV SUHGRPLQDWHG Q LQFOXGLQJ QHFN IUDJPHQWVf IROORZHG E\ GDUN JUHHQ JODVV Q LQFOXGLQJ QHFN DQG OLS IUDJPHQWf DQG FOHDU JODVV Q LQFOXGLQJ OLS IUDJPHQWf )LYH IUDJPHQWV RI DTXD JODVV ZHUH DOVR UHFRYHUHG &HUDPLFV RI HXURSHDQ PDQXIDFWXUH RFFXU IUHTXHQWO\ LQ WKH FROOHFWLRQ Q bf 7KH\ DUH GRPLQDWHG E\ FUHDPZDUHV RI YDULRXV W\SHV Q f LQFOXGLQJ SODLQ IHDWKHU HGJHG PROGHG UR\DO SDWWHUQ EOXH WUDQVIHU SULQWHG PRFKD DQG JUHHQ VKHOO HGJHG 3ODLQ FUHDPZDUH LV SUHGRPLQDQW Q f 7ZHQW\ILYH SHDUOZDUH VKHUGV ZHUH DOVR UHFRYHUHG %OXH WUDQVIHU SULQWHG SHDUOZDUH RFFXUV PRVW IUHTXHQWO\ Q f IROORZHG E\ SODLQ SHDUOZDUH Q f 7ZR VKHUGV RI KDQG SDLQWHG SRO\FKURPH DQG RQH VKHUG HDFK RI DQQXODU DQG EOXH VKHOO HGJHG SHDUOZDUH FRPSOHWH WKH SHDUOZDUH FROOHFWLRQ 7KH QH[W PRVW GRPLQDQW FHUDPLF W\SH LQ WKH FROOHFWLRQ LV ZKLWHZDUH Q f GRPLQDWHG E\ EOXH WUDQVIHU SULQWHG ZKLWHZDUH Q f EXW LQFOXGLQJ SODLQ Q f EODFN WUDQVIHU SULQWHG Q f KDQG SDLQWHG SRO\FKURPH Q f UHG KDQG SDLQWHG Q Of DQG DQQXODU Q Of ZKLWHZDUHV 6WRQHZDUHV RFFXU LQIUHTXHQWO\ LQ WKH FROOHFWLRQ Q f 7KH\ LQFOXGH IRXU ZKLWH VDOWJOD]HG VKHUGV LQFOXGLQJ WZR EDUOH\ SDWWHUQVf WKUHH EURZQ VDOWJOD]HG VKHUGV RQH VFUDWFK EOXH VKHUG DQG RQH IUDJPHQW RI D EHOODUPLQH 7KH UHPDLQLQJ 7KH EHOODUPLQH VKHUG PD\ EH D UHPQDQW RI WKH HDUO\ FRORQL]DWLRQ DWWHPSWV RI WKH &RXUODQGHUV RQ 7REDJR LQ WKH YLFLQLW\ RI &RXUODQG %D\ 1R RWKHU SRVVLEOH LQGLFDWLRQV RI

PAGE 209

(XURSHDQ FHUDPLFV IURP WKH WHVW SLW VXUYH\ LQFOXGH EODFN DQG EURZQ OHDGJOD]HG FRDUVH HDUWKHQZDUHV Q f GHOIWV Q f HQJOLVK SRUFHODLQ Q f IDLHQFH Q f FUHDP FRORUHG ZDUH Q Of DQG SODLQ UHGZDUH Q Of (LJKW VKHUGV RI XQLGHQWLILDEOH UHILQHG HDUWKHQZDUH ZHUH DOVR UHFRYHUHG 7ZHQW\ILYH VKHUGV RI XQJOD]HG FRDUVH HDUWKHQZDUH ZHUH UHFRYHUHG GXULQJ WKH WHVW SLW VXUYH\ b RI WKH WRWDO DVVHPEODJHf 0RVW ZHUH JULW WHPSHUHG Q f ZKLOH WKH UHPDLQGHU ZHUH VDQG WHPSHUHG Q f 2QO\ RQH VKRZHG HYLGHQFH RI VXUIDFH GHFRUDWLRQ LQ WKH IRUP RI EURDG OLQH LQFLVLQJ $ UDQGRPO\ VHOHFWHG VDPSOH RI WKH FRDUVH HDUWKHQZDUH VKHUGV UHFRYHUHG IURP WKH WHVW SLW VXUYH\ DQG IURP ODWHU H[FDYDWLRQV GLVFXVVHG EHORZf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f :KLOH RQO\ RQH VKHUG VKRZV HYLGHQFH RI FRLO IUDFWXULQJ LW LV OLNHO\ WKDW DOO ZHUH PDGH ZLWK WKLV PHWKRG 3HWHUVHQ FRQFOXGHV WKDW DOO RI WKH VKHUGV DUH PRVW WKLV RFFXSDWLRQ ZHUH IRXQG

PAGE 210

VLPLODU WR 6DODGRLG FHUDPLFV GDWLQJ WR VRPH WLPH DIWHU $' SHUVRQDO FRPPXQLFDWLRQf 7KH DUWLIDFWV UHFRYHUHG IURP WKH WHVW SLW VXUYH\ VXJJHVW D PLGWRODWH HLJKWHHQWK WR HDUO\WRPLGQLQHWHHQWK FHQWXU\ RFFXSDWLRQ RI WKH &RXUODQG HVWDWH YLOODJH $SSO\LQJ 6RXWKnV f PHDQ FHUDPLF GDWH IRUPXOD WR WKH GDWDEOH (XURSHDQ FHUDPLFV \LHOGV D GDWH RI ZLWK RFFXSDWLRQ EUDFNHWV RI WR :KLOH WKH HDUOLHU GDWH LV VRPHZKDW ODWHU WKDQ WKH VHWWOHPHQW RI 7REDJR DQG WKXV LQ NHHSLQJ ZLWK WKH SUREDEOH VWDELOL]DWLRQ RI VHWWOHPHQW DW &RXUODQG HVWDWH WKH ODWHU GDWH EDVHG RQ WKH SUHVHQFH RI WKH WRPE GDWLQJ WR GLVFXVVHG SUHYLRXVO\f PD\ EH VOLJKWO\ WRR HDUO\ 7KHVH SRLQWV DUH GLVFXVVHG PRUH IXOO\ LQ &KDSWHU 2QH KXQGUHG WKLUW\VL[ DUWLIDFWV ZHUH DVVRFLDWHG ZLWK WKH LQWHULRU RI 6WUXFWXUH $ 5RXJKO\ D WKLUG RI WKH PDWHULDO ZDV FRPSRVHG RI GDWDEOH (XURSHDQ FHUDPLFV $SSO\LQJ 6RXWKnV f PHDQ FHUDPLF GDWH IRUPXOD WR WKHVH FHUDPLFV \LHOGV D GDWH RI ZLWK D WHUPLQXV SRVW TXHUQ RI WUDQVIHUSULQWHG SHDUOZDUH DQG XQGHUJOD]H SRO\FKURPH SHDUOZDUHf $UFKLWHFWXUDO PDWHULDOV b RI WKH DVVHPEODJH LQFOXGHG ZLQGRZ JODVV VTXDUH QDLOV DQG QDLO IUDJPHQWV DQG UHGZDUH URRILQJ WLOH %RWWOH JODVV FRPSULVHG b RI WKH DVVHPEODJH ZLWK ROLYH JODVV SUHGRPLQDWLQJ )LQDOO\ VHYHUDO DGGLWLRQDO LWHPV ZHUH UHFRYHUHG VHH IRRWQRWH DERYHf

PAGE 211

:LWK WKH H[FHSWLRQ RI WKRVH FRQWDLQHG ZLWKLQ WKH 6WUXFWXUH $ IRXQGDWLRQ LW LV GLIILFXOW WR DWWULEXWH WKH DUWLIDFWV UHFRYHUHG LQ WKLV DUHD WR LQGLYLGXDO VWUXFWXUHV GXH WR WKH LQWUXVLRQ RI 6WUXFWXUH % RQ 6WUXFWXUH & DQG WKH LQWUXVLRQ RQ ERWK E\ 6WUXFWXUH $ ,Q DGGLWLRQ WKH ODFN RI YLVLEOH VRLO KRUL]RQV LQ WKH H[FDYDWLRQV DQG WKH VLPLODU SHUFHQWDJHV RI DUWLIDFW W\SHV ZLWKLQ DUELWUDU\ FHQWLPHWHU OHYHOV LQGLFDWH WKDW WKH DUHD KDV EHHQ H[WHQVLYHO\ GLVWXUEHG 7KLV UHVXOWV ERWK IURP QDWXUDO FDXVHVf§WKH VRLO RI WKH YLOODJH DUHD LV SUHGRPLQDQWO\ FOD\ DQG WKXV VXEMHFW WR WKH WXUEDWRU\ HIIHFWV RI ZHWWLQJ DQG GU\LQJf§DQG IDUPLQJ ,Q JHQHUDO WKH DUWLIDFWV UHFRYHUHG IURP H[FDYDWLRQV RXWVLGH RI WKH 6WUXFWXUH $ IRXQGDWLRQ EXW ZLWKLQ DQG LPPHGLDWHO\ VXUURXQGLQJ WKH 6WUXFWXUH % IRXQGDWLRQ DUH UHSUHVHQWHG LQ DSSUR[LPDWHO\ WKH VDPH SHUFHQWDJHV DV WKRVH HQFRXQWHUHG GXULQJ WKH WHVW SLW VXUYH\ 7KH DUWLIDFWV IURP 6WUXFWXUH ZHUH QRW IXOO\ DQDO\]HG GXH WR VFKHGXOLQJ SUREOHPV 6RXWKnV f PHDQ FHUDPLF GDWH IRUPXOD DSSOLHG WR WKH GDWDEOH (XURSHDQ FHUDPLFV UHFRYHUHG IURP WKH IRXU XQLWV LQ ZKLFK 6WUXFWXUH ZDV HQFRXQWHUHG \LHOGV D GDWH RI $ TXDUWHU RI D 6SDQLVK WZR UHDO FRLQ ZDV UHFRYHUHG IURP RQH RI WKHVH XQLWV %HDULQJ WKH FURZQHG DUPV RI 6SDLQ RQ WKH REYHUVH DQG WKH DUPV RI &DVWLOH DQG /HRQ RQ WKH UHYHUVH WKLV FRLQ ZDV PLQWHG EHWZHHQ DQG .UDXVH DQG 0LVKOHU f $OVR SUHVHQW EXW QRW FRXQWHG GXULQJ DQDO\VLV ZHUH ROLYH

PAGE 212

JUHHQ FOHDU DQG DTXD JODVV VTXDUH QDLOV DQG QDLO IUDJPHQWV FHUDPLF URRI WLOH VKHUGV D VPDOO DPRXQW RI VODWH ZLQGRZ JODVV DQG WZR VKHUGV RI XQJOD]HG FRDUVH HDUWKHQZDUH RQH VDQG WHPSHUHG DQG RQH JULW WHPSHUHGf VLPLODU WR WKH 6DODGRLGOLNH FHUDPLFV GLVFXVVHG DERYH 7KH 2WKHU FDWHJRU\ RI DUWLIDFWV DOOXGHG WR DERYH FRQWDLQV SULPDULO\ XQLGHQWLILHG LURQ IUDJPHQWV +RZHYHU LW DOVR FRQWDLQV VHYHQ JODVV EHDGV UHFRYHUHG GXULQJ H[FDYDWLRQV DW WKH &RXUODQG HVWDWH YLOODJH )RXU RI WKHVH DUH W\SH ,I EHDGV .LGG DQG .LGG f 8VLQJ WKH GHVFULSWLYH FDWHJRULHV ODLG RXW E\ 'HDJDQ f WKH\ DUH VLPSOH GUDZQ EHDGV RI PHGLXP VL]H ZLWK IDFHWHG VXUIDFHV 2QH EODFN LQ FRORUf LV RSDTXH ZKLOH WKUHH WZR EOXH DQG RQH UHGf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f $ VHFRQG VLPSOH URXQG EHDG PHGLXP VL]HG DQG DQ RSDTXH EOXH LQ FRORU LV OLNHO\ ZRXQG WKRXJK SDWLQD DQG VHYHUH SLWWLQJ PDNHV WKLV GLIILFXOW WR GHWHUPLQH $

PAGE 213

WKLUG EHDG LV RSDTXH UHG LQ GLDSKDQHLW\ DQG FRORU ,W LV F\OLQGULFDO LQ VKDSH ZRXQG DQG PHDVXUHV VHYHQ PLOOLPHWHUV LQ OHQJWK $Q HLJKWK EHDG UHFRYHUHG IURP WKH LQWHULRU RI 6WUXFWXUH $ LV DOVR XQLGHQWLILHG ,W LV DQ RSDTXH ZKLWH LQ FRORU DQG EDUUHO VKDSHG PHDVXULQJ PLOOLPHWHUV LQ OHQJWK 0LFURVFRSLF H[DPLQDWLRQ RI WKH EHDG UHYHDOV VRPH JUDLQ WR WKH PDWHULDO VXJJHVWLYH RI SRUFHODLQ 6SUDJXH f SRLQWV RXW WKDW VRPH JODVV EHDGV PDQXIDFWXUHG E\ WKH ILULQJ SURFHVV KDYH D VLPLODU FRQVLVWHQF\ DQG WKDW WKLV PHWKRG XWLOL]HV D FRPSUHVVLRQ WHFKQLTXH $V WKH EHDG H[KLELWV D GHOLFDWH LPSUHVVHG IORUDO PRWLI LQILOOHG ZLWK EOXH HQDPHO WKLV LV WKH OLNHO\ FRQVWUXFWLRQ WHFKQLTXH ,Q DGGLWLRQ WR WKH EHDGV GLVFXVVHG DERYH D ILUVW PRGHO %URZQ %HVV PXVNHW VLGH SODWH IUDJPHQW 3HWHUVRQ f D VKDQNHG JLOW 7REDJR 0LOLWLD XQLIRUP EXWWRQ EHDULQJ WKH /DWLQ PRWWR 3XOFKULRU (YHQLW 6KH EHFRPHV PRUH EHDXWLIXOf DQG IRXU PHWDO ZDIHUV ZHUH UHFRYHUHG IURP WKH &RXUODQG HVWDWH YLOODJH 7ZR RI WKH ZDIHUV DUH PDGH RI WLQ DQG KDYH QR GHFRUDWLRQ 7KH RWKHU WZR OLNHO\ IXQFWLRQHG DV WRNHQV UHSUHVHQWLQJ VRPH IL[HG PRQHWDU\ YDOXH 7KH\ DUH PDGH RI FRSSHU DQG EHDU WKH LPSUHVVHG XSSHUFDVH OHWWHUV 7% DERYH D ORZHUFDVH R RU D ]HUR ,Q DGGLWLRQ WKH EDVHDQGVWHP RI D WKLFNZDOOHG FOHDU JODVV JREOHW ZDV DOVR UHFRYHUHG IURP WKH LQWHULRU RI 6WUXFWXUH $ DV ZHUH D ERQH EXWWRQEDFN WZR

PAGE 214

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f WKH ORQJ D[LV LV RULHQWHG WR 1( 7KH UHPDLQV RI VHYHUDO KRH EODGHV ZHUH UHSRUWHGO\ UHFRYHUHG E\ D ORFDO SURSHUW\ RZQHU IURP WKH VWUHDPEDQN VRPH WR PHWHUV VRXWKZHVW RI 6WUXFWXUH /HV &RWHDX[ (VWDWH /HV &RWHDX[ (VWDWH )LJXUH f ZDV WKH ODUJHVW HVWDWH LQ 6W 'DYLGnV 3DULVK DQG RQH RI WKH ODUJHVW RQ WKH LVODQG FRYHULQJ DQ DUHD RI DFUHV LQ
PAGE 215

/HV &RWHDX[ (VWDWH &RXUODQG 5WUHU 6HFRQGDU\ mWUHDP 3ULPDU\ UHDG f§f§ 6HFRQGDU\ URDG 6WUXRWXUH f 'DP ; P RRQWRXUD

PAGE 216

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nV HDVWHUQ ERXQGDU\ 7KH GDP ZDV ZHOO HQJLQHHUHG DQG LV ODUJHO\ LQWDFW WRGD\ $ ORZ PDVVLYHO\ FRQVWUXFWHG IHDWXUH RI EULFN DQG PDVRQU\ LW LV PHWHUV IHHWf ZLGH DW WKH EDVH PHWHUV IHHWf ORQJ DQG OHVV WKDQ PHWHUV ILYH IHHWf KLJK 3ULPDULO\ D GLYHUVLRQ VWUXFWXUH WKUHH RSHQLQJV DUH DSSDUHQW LQ WKH IDFH 2QH DFFHVVHV WKH FDQDO RQ WKH QRUWK VLGH RI WKH ULYHU ZKLOH WKH RWKHUV RSHUDWHG DV RXWOHWV WR SUHYHQW GDPDJH WR WKH VWUXFWXUH GXULQJ SHULRGV RI KLJK

PAGE 217

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f :KLOH WKUHH DUH RQO\ WHQWDWLYHO\ LGHQWLILHG WKH ERLOLQJ URRP DQG WKH GLVWLOOHU\ DUH UHDGLO\ DSSDUHQW DV DUH WKH ZKHHO SLW DQG WKH PLOO SDG %DVHG RQ WKH VL]H RI WKH PLOO SDG WKH FUXVKLQJ PLOO ZDV RI WKH KRUL]RQWDO W\SH ,W PD\ KDYH EHHQ FRQQHFWHG WR DQ RYHUVKRW RU EDFNVKRW ZDWHU ZKHHO $OWHUQDWLYHO\ D EUHDVWVKRW ZKHHO PD\ KDYH EHHQ LQ SODFH &RQUDG 3ULFH SHUVRQDO FRPPXQLFDWLRQf UHSRUWV WKDW SULRU WR LWV DEDQGRQPHQW WKH ZKHHO DW WKH /HV &RWHDX[ IDFWRU\ ZDV WKH ODUJHVW RQ WKH LVODQG PXFK ODUJHU IRU H[DPSOH WKDQ WKH $UQRV 9DOH ZKHHO DQ RYHUVKRW ZKHHO ZKLFK LV VWLOO H[WDQW WRGD\f :LWK WKLV V\VWHP ZDWHU ZDV SLSHG XQGHU WKH URDG EHWZHHQ WKH FDQDO DQG WKH IDFWRU\ WR HPHUJH LQ WKH EDFN RI WKH ZKHHO SLW DW WKH PLGSRLQW RI WKH ZKHHO ([LVWLQJ

PAGE 218

)LJXUH /HV &RWHDX[ 6XJDU )DFWRU\ &RPSOH[ /HV &RWHDX[ 6XJDU )DFWRU\ &RPSOH[ f§0LOO \DUG f§0LOO SDG f§:KHHO SLW f§&RSSHUV f§%RLOLQJ KRXVH IORRU f§7HPSHUDWXUH FRQWURO RXWOHWV f§&KLPQH\ f§&RROLQJ DQG FKU\VWDOO]DWLRQ WDQN f§6NLPPLQJV WDQN f§&XULQJ URRP f§:DUHKRXVH f§6WLOO ORFDWLRQV f§:RUP WDQN f§%DJDV VKHG "f§,QGLFDWHV SUREDEOH LGHQWLILFDWLRQ =% PDWDQ

PAGE 219

HYLGHQFHf§LQFOXGLQJ WKH KHLJKW RI WKH FDQDO DERYH WKH IDFWRU\ WKH OHQJWK RI WKH ZKHHO SLW WKH SUHVHQFH RI D FDVWLURQ SLSH UXQQLQJ XQGHU WKH URDGZD\ DQG D SRVVLEOH EULFNFRQVWUXFWHG RYHUIORZ WXQQHO DQG RXWOHW DGMDFHQW WR WKH IDFWRU\f§VXSSRUWV HLWKHU LQWHUSUHWDWLRQ :KLOH WKH ZDOOV RI WKH ERLOLQJ URRP DUH UDUHO\ SUHVHUYHG DERYH D KHLJKW RI DERXW FHQWLPHWHUV HQRXJK LV SUHVHQW WR UHFRQVWUXFW WKH IORRU SODQ &RYHULQJ DQ DUHD RI VTXDUH PHWHUV VTXDUH IHHWf WKH ERLOLQJ URRP LV QRW ODUJH E\ 7REDJR VWDQGDUGV 7KH OD\RXW DSSHDUV YHU\ VLPLODU WR WKDW RI WKH 3URYLGHQFH (VWDWH ERLOLQJ URRP GHSLFWHG E\ 0F7HDU QGf§VHH )LJXUH f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

PAGE 220

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f DUH ORFDWHG PHWHUV ZHVW RI WKH VXJDU IDFWRU\ 6LWXDWHG RQ D KLJK KLOOWRS FRPPDQGLQJ D YLHZ QRW RQO\ RI WKH IDFWRU\ VLWH EXW RI WKH WKUHH DGGLWLRQDO VWUXFWXUHV LGHQWLILHG RQ HVWDWH SURSHUW\ DV ZHOO GLVFXVVHG EHORZf WKH KLOOWRS LV UHDFKHG E\ D VKRUW VWHHS GULYH IURP WKH QRUWK 3ULRU WR FRQVWUXFWLRQ WKH KLOOWRS ZDV WUXQFDWHG DQG WKH ILOO ZDV GXPSHG EHKLQG D VHULHV RI PDVRQU\ UHWDLQLQJ ZDOOV IRUPLQJ D SODWIRUP ODUJH HQRXJK WR VXSSRUW WKH HVWDWH KRXVH :KLOH WKH WRS RI WKH 7 VDW GLUHFWO\ DWRS EHGURFN WKH EDVH H[WHQGHG RXW RYHU D ILOOHG

PAGE 222

DUHD WR WKH HDVW $ VHFRQG DUHD RI ILOO EHKLQG D VHPLn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

PAGE 223

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nV VWUXFWXUH 7KH LQVFULSWLRQ LV XQUHDGDEOH 7KUHH DGGLWLRQDO VWUXFWXUHV ZHUH ORFDWHG RQ WKH HVWDWH 7KUHH KXQGUHG DQG VHYHQW\ILYH PHWHUV QRUWKHDVW RI WKH /HV &RWHDX[ VXJDU IDFWRU\ DUH EULFN DQG PDVRQU\ SLHUV RQ D JHQWO\ VORSLQJ WHUUDFH RYHUORRNLQJ WKH &RXUODQG 5LYHU WR WKH VRXWK 7KHVH SLHUV VXSSRUWHG D ZRRGHQ VWUXFWXUH PHDVXULQJ VOLJKWO\ OHVV WKDQ HLJKW E\ PHWHUV E\ IHHWf ZLWK WKH SULQFLSDO HQWU\ZD\ IDFLQJ WR WKH ZHVW 7KH ORQJ D[LV RI

PAGE 224

WKH VWUXFWXUH SDUDOOHOHG WKH HDVWZHVW FRQWRXUV RI WKH VORSH ,Q D OLPLWHG VXUIDFH FROOHFWLRQ RI WKH DUHD VXUURXQGLQJ WKH VWUXFWXUH WKUHH LGHQWLFDO EURZQ VDOWJOD]HG VWRQHZDUH LQN ERWWOHV ZHUH UHFRYHUHG 1RHO +XPH QRWHV WKDW WfKH YDVW PDMRULW\ RI WKH LQN ERWWOHV RI WKLV W\SHfZHUH PDGH LQ WKH SHULRG WR DOWKRXJK VRPH H[DPSOHV RI WKH FODVV ZHUH SUREDEO\ D OLWWOH HDUOLHU f *LYHQ WKLV WHPSRUDO FRQWH[W LW LV OLNHO\ WKDW WKLV VWUXFWXUH LV WKH RQH PHQWLRQHG LQ D GRFXPHQW SURGXFHG E\ WKH $QJOLFDQ &KXUFK EHWZHHQ DQG ,Q D VXPPDU\ RI SUHVHQW DQG IXWXUH FRQVWUXFWLRQ E\ WKH FKXUFK LQ WKH ZDNH RI HPDQFLSDWLRQ XQGHU WKH KHDGLQJ %XLOGLQJV SURSRVHG WR EH HUHFWHG LV WKH IROORZLQJ LWHP 1R /HV &RWHDX[ 3DULVK RI 6W 'DYLG VFKRRO [ IW PDVWHUnV KRXVH GHWDFKHG ZRUN LQ SURJUHVV TXRWHG LQ 3KLOOLSV QGFKDSWHU RULJLQDO UHIHUHQFH XQDYDLODEOHf 7KH VFKRRO DOVR IXQFWLRQLQJ DV D FKDSHO ZDV WR EH XVHG IRU WKH UHOLJLRXV DQG VHFXODU HGXFDWLRQ RI WKH QHZO\ IUHHG VODYHV 3KLOOLSV QGFKDSWHU f %XULDOV DVVRFLDWHG ZLWK WKLV VWUXFWXUH ZHUH UHFHQWO\ PRYHG WR WKH FHPHWHU\ RI WKH QHZ $QJOLFDQ &KXUFK LQ WKH YLOODJH RI /HV &RWHDX[ ORFDWHG DW WKH FRUQHU RI $UQRV 9DOH DQG &XOORGHQ 5RDGV &RQUDG 3ULFH SHUVRQDO FRPPXQLFDWLRQf 1R HYLGHQFH RI WKH GHWDFKHG PDVWHUnV KRXVH ZDV HQFRXQWHUHG 7KH UHPDLQV RI WZR DGGLWLRQDO VWUXFWXUHV DUH ORFDWHG RQ WKH IODW RI D ORZ EOXII LPPHGLDWHO\ RYHUORRNLQJ WKH /HV

PAGE 225

&RWHDX[ VXJDU IDFWRU\ ,Q VL]H DQG VKDSH HDFK PHDVXUHV VHYHQ E\ PHWHUV WKH\ DUH VLPLODU WR 6WUXFWXUH DW &RXUODQG (VWDWH DQG PD\ KDYH VHUYHG D VLPLODU SXUSRVH 7KH /HV &RWHDX[ VWUXFWXUHV UXQ SDUDOOHO WR RQH DQRWKHU DORQJ WKHLU HDVWZHVW RULHQWHG ORQJ D[HV DQG DUH VHSDUDWHG E\ D GLVWDQFH RI PHWHUV 7KH VRXWKHUQPRVW RI WKH WZR FORVHVW WR WKH IDFWRU\ ZDV URRIHG ZLWK FHUDPLF WLOH VLJQLILFDQW DPRXQWV RI ZKLFK DUH VWLOO VFDWWHUHG DERXW RQ WKH VXUIDFH LQ WKH LQWHULRU RI WKH EXLOGLQJ 7KH DUHD RFFXSLHG E\ WKHVH WZR VWUXFWXUHV LV ORFDOO\ LGHQWLILHG DV WKH JUDVV PDUNHW 7KLV LGHQWLILFDWLRQ LV ERUQH RXW E\ WKH SUHVHQFH LQ WKH VRXWKHDVW FRUQHU RI WKH VRXWKHUQ VWUXFWXUH RI DQ LURQ KDQGRSHUDWHG PDFKLQH GHVLJQHG WR FRPSDFW JUDVVHV IRU EXQGOLQJ 7KH EXQGOHV FRXOG WKHQ EH XVHG IRU WKDWFKLQJ $ VPDOO FRSSHU SODWH RQ WKH VLGH RI WKH EXQGOLQJ PDFKLQH UHDGV 5DQVRPHV ,SVZLFK 3DWHQW ZKLOH LQ DQRWKHU DUHD WKH ZRUGV 5DQVRPHV 0D\ 3DWHQW DUH FDVW LQWR WKH LURQ LWVHOI $OVR FDVW LQWR HDFK LQGLYLGXDO SDUW LV D XQLTXH LGHQWLI\LQJ ODEHO WR DLG LQ UHDVVHPEO\ DIWHU VKLSSLQJ ,Q DQ HIIRUW WR OHDUQ LI WKH JUDVV PDUNHW VWUXFWXUHV ZHUH IXQFWLRQDOO\ DQDORJRXV WR DQ HVWDWH YLOODJH LH LI WKH\ IXQFWLRQHG DV EDUUDFNVf WHVW SLWV HDFK PHDVXULQJ E\ FHQWLPHWHUV ZHUH H[FDYDWHG DW PHWHU LQWHUYDOV LQ WKH JUDVV PDUNHW DUHD H[WHQGLQJ LQWR WKH JHQWO\ UROOLQJ WHUUDLQ WR WKH ZHVW GHILQHG DV $UHD RQ )LJXUH 7KLV

PAGE 226

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f ZDV UHFRYHUHG IURP D WHVW SLW RQ WKH EURDG WHUUDFH QRUWK RI WKH $UQRV 9DOH 5RDG 7KHVH PDWHULDOV PD\ LQGLFDWH WKDW $UHD ZDV IXQFWLRQDOO\

PAGE 227

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f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

PAGE 228

)LJXUH %f§ 2UDQJH +LOO (VWDWH 2UDQJH +LOO (VWDWH FD DIWHU $QRQ\PRXV QG '26
PAGE 229

$QRQ\PRXV QGf PDGH ZKHQ ERWK HVWDWHV ZRUNHG WRJHWKHU DW WKH WLPH ZHQW LQWR UHFHLYHUVKLS XQGHU WKH (QFXPEHUHG (VWDWHV $FW :KLOH QR GDWH LV SULQWHG RQ WKH PDS WKH HVWDWH ZDV EHIRUH WKH FRXUW LQ DQG &2 LQ 3KLOOLSV QGf 0RVW RI WKH VWUXFWXUHV GHSLFWHG RQ WKH PDS DUH UHFRJQL]DEOH WRGD\ DV LV WKHLU UHODWLRQVKLS WR 2UDQJH +LOO 5RDG 7KH 2UDQJH +LOO VXJDU IDFWRU\ FRPSOH[ LV ORFDWHG RQ WKH QRUWK VLGH RI 2UDQJH +LOO 5RDG DW WKH ZHVWHUQ HGJH RI WKH SURSHUW\ DGMDFHQW WR D ORZ ULVH 7KRXJK ODUJHO\ DEDQGRQHG WRGD\ WKH DUHD KDV EHHQ VLJQLILFDQWO\ PRGLILHG RYHU WKH \HDUV 7KH OLQHDU IDFWRU\ EXLOGLQJ IRUPHUO\ KRXVLQJ WKH ERLOLQJ FXULQJ DQG VWLOO URRP KRZHYHU LV VWLOO SUHVHQW DQG PHDVXUHV QLQH E\ PHWHUV E\ IHHWf 7KH VWUXFWXUH ZDV PRGLILHG LQWR D GDLU\ EDUQ LQ WKH PLGWK FHQWXU\ DIWHU VXJDU ZDV DEDQGRQHG LQ WKH ODWH V /HR &RRSHU SHUVRQDO FRPPXQLFDWLRQf 7KH ERLOLQJ URRP LV UHFRJQL]DEOH DW WKH QRUWKHUQ HQG RI WKH VWUXFWXUH E\ WKH ILOOHG LQ GDPSHU RSHQLQJV LQ WKH H[WHULRU IDFDGH RI WKH ORQJ ZHVWHUQ ZDOO $ ZLQGPLOO IRU FDQH JULQGLQJ LV VKRZQ RQ WKH (QFXPEHUHG (VWDWHV PDS DV ZHOO ,W LV ORFDWHG PHWHUV QRUWK RI WKH IDFWRU\ EXLOGLQJ 7KH ZLQGPLOO WRZHU LV VWLOO H[WDQW DQG ZDV FRQYHUWHG LQWR DQ HTXLSPHQW VWRUDJH DUHD IRU WKH FDWWOH RSHUDWLRQ 7KH EDVH RI WKLV WRZHU PHDVXUHV QLQH PHWHUV IHHWf LQ GLDPHWHU

PAGE 230

6HYHUDO DGGLWLRQDO VWUXFWXUHV DUH GHSLFWHG RQ WKH (QFXPEHUHG (VWDWHV PDS $QRQ\PRXV QGf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n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n QLQHWHHQWK FHQWXU\ FHUDPLFV 7KHVH LQGLFDWH D SULPDULO\ SRVWHPDQFLSDWLRQ RFFXSDWLRQ RI WKH YLOODJH DUHD 7KH RQO\ DUFKLWHFWXUDO UHPDLQV ORFDWHG RQ WKH ULVH WKRXJK QRW GHSLFWHG RQ WKH PDS DUH WKH EULFN DQG PDVRQU\ EDVH RI D KH[DJRQDO ZLQGPLOO WRZHU PHDVXULQJ HLJKW PHWHUV IHHWf

PAGE 231

DFURVV 7KH KROORZ LQWHULRU RI WKH VWUXFWXUH FRQWDLQV D VTXDUH PDVRQU\ IRXQGDWLRQ ZLWK DQ H[WHULRU GLPHQVLRQ RI PHWHUV IHHWf WKDW IXQFWLRQHG DV D PLOO SDG 7KH ORFDWHG HVWDWH YLOODJH FRXOG QRW EH VHFXUHO\ GDWHG WR WKH SHULRG RI VODYHU\ EDVHG RQ VXUIDFH LQGLFDWLRQV ZKLOH WKH UHPDLQV RI DQ HDUO\ ZLQGPLOO WRZHU LQGLFDWH WKDW WKH DUHD LQLWLDOO\ IXQFWLRQHG DV D PLOO \DUG DQG ZDV QRW JLYHQ RYHU WR KDELWDWLRQ XQWLO UHODWLYHO\ ODWH LQ WKH VODYH SHULRG )XUWKHU LQYHVWLJDWLRQ ZRXOG KDYH UHTXLUHG VXEVXUIDFH WHVWLQJ DQG WKH UHPRYDO RI WKH SDVWXUHnV RFFXSDQWV *LYHQ WKH ODFN RI DOWHUQDWLYH SDVWXUHV WKH OLNHOLKRRG WKDW WKH YLOODJH ZDV RFFXSLHG SULPDULO\ E\ IUHH ODERUHUV UDWKHU WKDQ VODYHV DQG WKH SUHVHQFH RI RWKHU PRUH SURPLVLQJ YLOODJH VLWHV QR DGGLWLRQDO LQYHVWLJDWLRQ RI WKH 2UDQJH +LOO YLOODJH DUHD ZDV XQGHUWDNHQ 7KH (QFXPEHUHG (VWDWHV PDS $QRQ\PRXV QGf DOVR VKRZV WKH HVWDWH KRXVH DQG ILYH DQFLOODU\ EXLOGLQJV ODEHOHG RIILFHV 7KH UHPDLQV RI WKHVH VWUXFWXUHV DUH ORFDWHG RQ D ORZ KLOOWRS PHWHUV VRXWK RI WKH IDFWRU\ FRPSOH[ DQG DUH UHDFKHG E\ D VKRUW GULYH RQ WKH VRXWK VLGH RI 2UDQJH +LOO 5RDG :KLOH WKH UHPDLQV RI WKH RIILFHV DUH IUDJPHQWDU\ WKH HVWDWH KRXVH IRXQGDWLRQ LV ODUJHO\ LQWDFW 7KH ZRRGHQ VWUXFWXUH LW VXSSRUWHG ZDV GHVWUR\HG E\ D WURSLFDO VWRUP LQ DOWKRXJK LW KDG EHHQ SUHYLRXVO\ DEDQGRQHG /HR &RRSHU SHUVRQDO FRPPXQLFDWLRQf 7KH UHPDLQV LQGLFDWH WKDW DW OHDVW WZR VWUXFWXUHV ZHUH EXLOW RQ WKH VDPH VLWH )LJXUH

PAGE 232

f 7KH HDUOLHU VWUXFWXUH FRQVWUXFWHG RQ EULFN SLHUV ZDV 7VKDSHG ZLWK WKH EDVH RI WKH 7 H[WHQGLQJ WR WKH VRXWKHDVW ,W ZDV UHDFKHG E\ WZR VHWV RI DUFKHG EULFN VWDLUZD\V RQH DW WKH IURQW RI WKH KRXVH IDFLQJ WKH GULYH DQG WKH VHFRQG DW WKH UHDU RI WKH KRXVH IDFLQJ D SDQRUDPLF YLHZ RI 6FDUERURXJK WR WKH VRXWKHDVW $W D ODWHU GDWH WKH LQWHUVWLWLDO VSDFHV EHWZHHQ PDQ\ RI WKH EULFN SLHUV ZHUH ILOOHG ZLWK PDVRQU\ ZDOOV 7KLV QHZ IRXQGDWLRQ VXSSRUWHG D VWUXFWXUH PHDVXULQJ E\ PHWHUV E\ IHHWf 7ZR FLVWHUQV DUH SUHVHQW DW WKH 2UDQJH +LOO HVWDWH KRXVH ERWK LQ WKH VRXWKHUQ FRUQHU RI WKH VWUXFWXUH 2QH LV FRQVWUXFWHG RI FRQFUHWH ZKLOH WKH RWKHU LV PDGH RI FDVWLURQ DQG LV VXSSRUWHG RQ WZR EULFN SLHUV 1R RWKHU DUFKLWHFWXUDO UHPDLQV ZHUH HQFRXQWHUHG RQ 2UDQJH +LOO (VWDWH +RZHYHU D ORFDO LQIRUPDQW LQGLFDWHV WKDW D FHPHWHU\ FRQWDLQLQJ WZR PDUNHUV ZDV ORFDWHG DW WKH GLVWDO HQG RI D ORZ ULGJH H[WHQGLQJ VRXWKZHVW IURP WKH VLWH RI WKH HVWDWH KRXVH /HR &RRSHU SHUVRQDO FRPPXQLFDWLRQf 7KRXJK 0U &RRSHU VKRZHG PH WKH VLWH QR HYLGHQFH RI WKHVH EXULDOV LV DSSDUHQW RQ WKH VXUIDFH 6XPPDU\ RI ,QWHQVLYH 6XUYH\ 7KUHH HVWDWHV KDYH EHHQ GLVFXVVHG LQ WKLV FKDSWHU &RXUODQG /HV &RWHDX[ DQG 2UDQJH +LOO 7KH\ ZHUH RSHUDWHG XVLQJ WKH WZR SULPDU\ SRZHU VRXUFHV LQ 6W 'DYLGnV 3DULVK ZDWHU DQG ZLQG ,Q PDQ\ UHVSHFWV WKH\ FRQIRUP ZHOO ZLWK

PAGE 233

2UDQJH +LOO (VWDWH +RXVH )LJXUH f§ 2UDQJH +LOO (VWDWH +RXVH

PAGE 234

WKH SDWWHUQ ODLG RXW E\ +LJPDQ f DQG JHQHUDOO\ FRQILUPHG E\ WKH UHJLRQDO VXUYH\ UHVXOWV GLVFXVVHG LQ &KDSWHU ,Q SDUWLFXODU /HV &RWHDX[ (VWDWH ZLWK LWV VXJDU IDFWRU\ LQ WKH &RXUODQG 5LYHU YDOOH\ ERWWRP DQG LWV HVWDWH KRXVH RQ D KLJK KLOOWRS LQ DQ RYHUZDWFKLQJ SRVLWLRQ PDWFKHV +LJPDQnV PRGHO FORVHO\ &RXUODQG DQG 2UDQJH +LOO LQ FRQWUDVW SUHVHQW VRPH DVSHFWV ZKLFK DUH QRW LQ FRQIRUPDQFH ZLWK WKH PRGHO 7KH PRVW UHDGLO\ DSSDUHQW GHYLDWLRQ IURP +LJPDQn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f DQG VHPDSKRUH VWDWLRQV ZKLFK ZHUH PDLQWDLQHG E\ WKH PLOLWDU\ IRU FRPPXQLFDWLRQV EHWZHHQ )RUW .LQJ *HRUJH DW 6FDUERURXJK DQG RXWO\LQJ IRUWV EDWWHULHV DQG JDUULVRQV VFDWWHUHG DERXW WKH

PAGE 235

FRDVW )LQDOO\ VKLSSLQJ LQ WKH ZDWHUV DURXQG 7REDJR ZHUH RIWHQ YLVLEOH HYHQ IURP HVWDWH KRXVHV ORFDWHG LQ LQODQG DUHDV 7KH UHPDLQV RI WZR HVWDWH KRXVHV ZHUH ORFDWHG DW &RXUODQG (VWDWH 7KHVH DSSHDU WR KDYH EHHQ FRQVWUXFWHG DQG RFFXSLHG DW GLIIHUHQW WLPHV 2QH ORFDWHG RQ D ULGJH WR WKH VRXWKHDVW RI WKH IDFWRU\ DQG IODQNHG E\ D WRPE GDWLQJ WR FRQIRUPV ZHOO ZLWK +LJPDQnV PRGHO $V WKLV HVWDWH KRXVH DSSHDUV RQ WKH &DUWH 0LOLWDLUH LW ZDV LQ SODFH E\ DQG LV OLNHO\ WKH HDUOLHU VWUXFWXUH 7KH VHFRQG HVWDWH KRXVH LV DGMDFHQW WR WKH VXJDU IDFWRU\ DQG WKXV GRHV QRW FRQIRUP WR +LJPDQn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nV PRGHO ZKHUH YLOODJHV DUH ORFDWHG VR DV WR IRUP D URXJKO\ HTXLODWHUDO WULDQJOH ZLWK

PAGE 236

WKH HVWDWH KRXVH DQG WKH VXJDU IDFWRU\ WKH &RXUODQG YLOODJH LV ORFDWHG DGMDFHQW WR WKH FRQWHPSRUDQHRXV HVWDWH KRXVH ,Q DGGLWLRQ WKH VWUXFWXUHV FRQWDLQHG ZLWKLQ WKH YLOODJH ZHUH FRQVWUXFWHG RQ DQ D[LV WKDW ZDV LGHQWLFDO WR WKH EXLOGLQJV LQ WKH HVWDWH KRXVH FRPSOH[ 7KLV V\PPHWULFDO DUUDQJHPHQW LV XQOLNHO\ WR KDYH RFFXUUHG E\ KDSSHQVWDQFH DQG PD\ EH UHODWHG WR WKH FORVH SUR[LPLW\ EHWZHHQ WKH HVWDWH KRXVH DQG WKH YLOODJH 7KH GHYLDWLRQV IURP +LJPDQnV PRGHO VXPPDUL]HG KHUH DUH GLVFXVVHG PRUH IXOO\ LQ &KDSWHU

PAGE 237

&+$37(5 $ 5(*,21$/ 3(563(&7,9( :KHQ SODQWHUV ILUVW HQFRXQWHUHG WKH LVODQG RI 7REDJR WKH\ VDZ QRW DQ XQWDPDEOH ZLOGHUQHVV EXW ULFK DQG IHUWLOH ODQG ULSH IRU FRORQL]DWLRQ 7KH ODQG ZDV QRW XQLIRUP KRZHYHU 6WHHS VORSHV GHQVH IRUHVWDWLRQ VKLSSLQJ DFFHVV KHDOWK FRQFHUQV DQG ZDWHU DYDLODELOLW\ DOO WHPSHUHG WKH SHUFHLYHG GHVLUDELOLW\ RI LQGLYLGXDO SORWV RI ODQG %DVHG RQ WKHLU SHUFHSWLRQV RI WKH SRVLWLYH DQG QHJDWLYH IDFWRUV DIIHFWLQJ LQGLYLGXDO SORWVf§SHUFHSWLRQV ZKLFK ZHUH SUREDEO\ GHYHORSHG OHVV E\ SHUVRQDO REVHUYDWLRQ DQG PRUH E\ ZRUGRI PRXWK LQ WKH HDUOLHVW \HDUV RI VHWWOHPHQWf§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

PAGE 238

WKH VLWH RI JRYHUQPHQW E\ YLUWXH RI LWV JHRJUDSKLF FHQWUDOLW\
PAGE 239

WKH\ KDYH VXIILFLHQW VXUIDFH ZDWHU WR VXSSRUW ERWK OLIH DQG WKH UXPPDNLQJ SURFHVV :KHUH &RXUODQG (VWDWH DEXWV WKH &RXUODQG 5LYHU DQG FRQWDLQV WZR SHUHQQLDO VWUHDPV ZLWKLQ LWV ERXQGDULHV 6W 3DWULFNnV DQG 6W $QGUHZnV 3DULVKHV KDYH PDQ\ VPDOO EXW UHOLDEOH VSULQJV 6HFRQG ERWK &RXUODQG (VWDWH DQG 6W 3DWULFNnV DQG 6W $QGUHZnV 3DULVKHV DUH UHODWLYHO\ IODW WKH IRUPHU DV D UHVXOW RI &RXUODQG 5LYHU GHSRVLWLRQ 7ULQLGDG DQG 7REDJR 0LQLVWU\ RI $JULFXOWXUH DQG 8QLYHUVLW\ RI WKH :HVW ,QGLHV f DQG WKH ODWWHU DV D UHVXOW RI HPHUJHQW FRUDOOLQH IRUPDWLRQV 1LGGULH f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f§&RXUODQG (VWDWH DQG YLUWXDOO\ DOO RI WKH HVWDWHV RI 6W 3DWULFNnV DQG 6W $QGUHZnV XWLOL]HG ZLQGPLOOV WR SRZHU WKHLU FUXVKLQJ PLOOV (XEDQNV f 3RVVLEOH H[SODQDWLRQV IRU WKLV DSSDUHQW LQFRQVLVWHQF\ OLH LQ WKH UHODWLYH GHVLJQ FRPSOH[LW\ RI WKH WZR SRZHU V\VWHPV LQ WKH

PAGE 240

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

PAGE 241

XVXDOO\ UHTXLULQJ WKDW WKH\ FURVV VPDOOHU GUDLQDJHV D WDVN DFFRPSOLVKHG E\ WKH FRQVWUXFWLRQ RI VPDOO DTXHGXFWV ,Q WHUPV RI PDWHULDOV WKRVH XVHG IRU ZLQGPLOO FRQVWUXFWLRQ ZHUH PRUH UHDGLO\ DFFHVVLEOH DQG HDVLHU WR ZRUN ZLWK JLYHQ WKH UDQJH RI VNLOOV DYDLODEOH RQ 7REDJR :KHUH WKH VWUXFWXUHV DVVRFLDWHG ZLWK ZDWHU SRZHUHG V\VWHPVf§WKH GDP FDQDO DQG ZKHHO SLWf§UHTXLUHG VWRQH RU EULFN FRQVWUXFWLRQ DQG QHFHVVLWDWHG VNLOOHG PDVRQV ZLQGPLOOV ZHUH PDGH SULPDULO\ RI ZRRG GXULQJ WKH ILUVW \HDUV RI VHWWOHPHQW 7KRXJK ODWHU ZLQGPLOO WRZHUV ZHUH WDOO FLUFXODU VWUXFWXUHV FRQVWUXFWHG RI VWRQH DQG EULFN $QRQ\PRXV QGf WKH HDUOLHVW ZHUH SULPDULO\ ZRRGHQ VWUXFWXUHV &2
PAGE 242

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f WKH ODUJH PDMRULW\ GLG
PAGE 243

VXJDU IDFWRU\ FRPSOH[ RQ -DPDLFD WKH 6W 'DYLGnV 3DULVK VDPSOH ZDV VLJQLILFDQWO\ VPDOOHU RQ WKH RUGHU RI RQH WR WZR DFUHV 6XFK LV QRW WKH FDVH KRZHYHU IRU WKH GLVWDQFH EHWZHHQ WKH YDULRXV HOHPHQWV RI DQ HVWDWH 2Q 7REDJR WKH DYHUDJH GLVWDQFH EHWZHHQ WKH HVWDWH KRXVH DQG WKH VXJDU IDFWRU\ LV PHWHUV DJUHHLQJ ZHOO ZLWK +LJPDQnV f ILJXUH RI \DUGV PHWHUVf IRU -DPDLFD $ 0RGHO (VWDWH $V GLVFXVVHG DERYH WKH SULQFLSOH IDFWRUV HIIHFWLQJ VXJDU IDFWRU\ VLWLQJ ZHUH DFFHVV WR ZDWHU IRU UXP PDQXIDFWXUH DQG HDVH RI WUDQVSRUW WR DQG IURP WKH IDFWRU\ 2QO\ DIWHU WKHVH UHTXLUHPHQWV ZHUH PHW ZDV WKH SRZHU VRXUFH GHFLGHG XSRQ DQG D IDFWRU\ VLWH FKRVHQ *LYHQ DQ DGYDQWDJHRXV ORFDWLRQf§D VWUHDP ZLWK VXIILFLHQW IORZ FURVVLQJ D EHGURFN RXWFURS LQ SUR[LPLW\ WR D UHODWLYHO\ OHYHO DUHD ODUJH HQRXJK WR VXSSRUW D IDFWRU\ FRPSOH[f§ZDWHU SRZHU ZDV SUHIHUUHG ,Q WKH DEVHQFH RI VXFK D ORFDWLRQ ZLQGPLOOV ZHUH FRQVWUXFWHG ,Q RQO\ RQH LQVWDQFH DW *ROGHQ 7KLV ILJXUH LV EDVHG RQ WKH LQVWDQFHV LQ 6W 'DYLGnV 3DULVK LQ ZKLFK ERWK WKH HVWDWH KRXVH DQG WKH VXJDU IDFWRU\ ZHUH VHFXUHO\ LGHQWLILHG ,W LQFOXGHV WKH GLVWDQFH EHWZHHQ WKH $GYHQWXUH HVWDWH KRXVH DQG ERWK WKH ROG DQG QHZ ZRUNV +LJPDQ f DOVR FLWHV GLVWDQFHV RI \DUGV PHWHUVf EHWZHHQ HVWDWH YLOODJH DQG VXJDU ZRUNV DQG \DUGV PHWHUVf EHWZHHQ YLOODJH DQG HVWDWH KRXVH ,QVXIILFLHQW GDWD H[LVWV RQ 7REDJR RQO\ WKUHH HVWDWH YLOODJHV ZHUH VHFXUHO\ ORFDWHGf WR PDNH D PHDQLQJIXO FRPSDULVRQ ZLWK WKLV GDWD

PAGE 244

/DQH (VWDWH ZDV D FDWWOH PLOO XVHG LQ 6W 'DYLGnV 3DULVK 6LJQLILFDQWO\ LW LV VLWHG ZLWK DFFHVV WR D VPDOO VWUHDP SURYLGLQJ ZDWHU IRU UXP PDQXIDFWXUH DQG WR D URDG VORSLQJ JHQHUDOO\ GRZQZDUG WR WKH VKLSSLQJ SRLQW DW $UQRV 9DOH %D\ 8SRQ VHOHFWLRQ RI D IDFWRU\ VLWH WKH OD\RXW RI WKH FRPSOH[ LWVHOI ZDV GHWHUPLQHG $ SUHIHUHQFH IRU DQ\ RQH SDUWLFXODU IRUP RYHU RWKHUV LV QRW SUHVHQW 2I WKH VXJDU IDFWRULHV HQFRXQWHUHG LQ 6W 'DYLGnV 3DULVK ILYH DUH / VKDSHG WKUHH DUH 7VKDSHG WZR DUH OLQHDU IRXU DUH GLVFRQWLJXRXV DQG RQH LV ODLG RXW DV D URXJK VTXDUH ,Q VHYHQ LQVWDQFHV WKH IRUP RI WKH IDFWRU\ ZDV QRW GHWHUPLQHG 7KLV ZDV DQ RGG ILQGLQJ JLYHQ WKDW D 7VKDSHG IDFWRU\ LV SUREDEO\ WKH PRVW HIILFLHQW IURP D SURGXFWLRQ VWDQGSRLQW %HFNIRUG f 7KLV IRUP LV PRUH FRPSDFW RQ WKH ODQGVFDSH DQG UHTXLUHV OHVV WUDYHO WLPH EHWZHHQ YDULRXV DUHDV UHGXFLQJ WUDQVSRUW HIIRUW DQG HQKDQFLQJ VXSHUYLVLRQ ,Q DQ LQGXVWU\ VWUHVVLQJ SURGXFWLRQ ZLWK IRUFHG ODERU WKHVH VKRXOG EH LPSRUWDQW FRQFHUQV :UD\ f 5DWKHU WKDQ ZRUU\ DERXW IRUP KRZHYHU WKH HQJLQHHUV ZKR GHVLJQHG WKHVH IDFWRULHV DQG WKH SODQWHUV ZKR GLUHFWHG WKHLU HIIRUWV ZRUNHG ZLWKLQ WKH OLPLWDWLRQV LPSRVHG E\ ORFDO WRSRJUDSK\ HQVXULQJ WKDW WKH IORRU RI WKH ERLOLQJ URRP ZDV VLJQLILFDQWO\ KLJKHU WKDQ WKDW RI HLWKHU WKH FXULQJ URRP RU WKH GLVWLOOHU\

PAGE 245

7KH (VWDWH +RXVH 7KH SUHIHUUHG ORFDWLRQ IRU DQ HVWDWH KRXVH ZDV D KLOOWRS 6XFK D ORFDWLRQ JDYH DFFHVV WR FRROLQJ EUHH]HV WKDW NHSW WKH LQVHFW SRSXODWLRQ GRZQ DQG DOVR SURYLGHG WKH SODQWHU ZLWK D FRPPDQGLQJ YLHZ RI WKH VXJDU IDFWRU\ DQG WKH HVWDWH YLOODJH 7KHVH FRQFHUQV ZHUH PDGH H[SOLFLW LQ VHYHUDO FRQWHPSRUDU\ GRFXPHQWV HJ
PAGE 246

IURP WKH HVWDEOLVKHG WRZQV RI 3O\PRXWK DQG 6FDUERURXJK RU IURP RWKHU HVWDWH KRXVHV 6XFK VLWLQJ DOORZHG FRPPXQLFDWLRQ EHWZHHQ ORFDWLRQV WKDW ZHUH GLVWDQW IURP RQH DQRWKHU E\ URDG 6LJQDO VWDWLRQV VHW XS E\ WKH PLOLWDU\ RQ KLJK KLOOWRSV LQ WKH LQWHULRU RI WKH LVODQG $QRQ\PRXV f ZHUH XVHG WR FRPPXQLFDWH EHWZHHQ WRZQV DQG EHWZHHQ WKH WZR IRUWV DQG EDWWHULHV JXDUGLQJ WKH FRDVW
PAGE 247

GLUHFWLRQV VRPHWLPHV DW WKH H[SHQVH RI WKH SODQWHUn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f WKHLU VLWLQJ DOVR HQJHQGHUHG D IHHOLQJ RI VROLGDULW\ RQ WKH SDUW RI SODQWHUV 3XOVLSKHU f %HFDXVH WKH\ ZHUH H[SRVHG WR YLHZ JUHDW SDLQV ZHUH WDNHQ LQ WKH GHVLJQ RI HVWDWH KRXVHV ,Q FRQWUDVW WR WKH IDFWRULHV WKH SUHIHUUHG HVWDWH KRXVH GHVLJQ PD\ KDYH EHHQ 7VKDSHG DW OHDVW GXULQJ WKH SHULRG RI VODYHU\ :KDWHYHU WKHLU IRUP KRZHYHU HVWDWH KRXVHV ZHUH V\PPHWULFDO ZKLOH GHFRUDWLYH HOHPHQWV VXFK DV DUFKHG VWDLUZD\V DQG GHVLJQV LQ VXSSRUWLQJ SLHUV ZHUH DOZD\V SUHVHQW %HFDXVH WKH\ ZHUH OHVV ERXQG WKDQ IDFWRU\ EXLOGLQJV E\ IXQFWLRQDO FRQVLGHUDWLRQV DQG WRSRJUDSKLF YDULDWLRQ V\PPHWU\ DQG UHJXODULW\ ZHUH FRQVLGHUHG WR EH GHVLUDEOH DHVWKHWLF DWWULEXWHV 7KH EXLOGHU RI WKH ROG HVWDWH KRXVH DW ,Q WKLV UHJDUG LW LV LQWHUHVWLQJ WKDQ QRQH RI WKH GLVFRQWLJXRXV VXJDU IDFWRULHV LGHQWLILHG LQ 6W 'DYLGnV 3DULVK DUH YLVLEOH IURP WKH PDLQ URDGV

PAGE 248

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f GHILQHV D VKRZSODFH SODQWDWLRQ DV DQ HVWDWH ZKHUH HOLWH WUDYHOHUV FRXOG EH DVVXUHG RI D KRVSLWDEOH ZHOFRPH &RXUODQG ILWV WKLV GHVFULSWLRQ ,WV SUR[LPLW\ WR 3O\PRXWK PDGH LW DFFHVVLEOH ZKLOH WKH SRVLWLRQ DQG SROLWLFDO FORXW RI LWV RULJLQDO RZQHU -DPHV 6LPSVRQ PDGH KLP D ZHOO NQRZQ ILJXUH ERWK RQ DQG RII WKH LVODQG $W VHOHFWHG HVWDWHV WKH H[WHUQDO VKRZSODFH IXQFWLRQ PD\ KDYH EHHQ FRPSOLPHQWHG E\ DQ LQWHUQDO IXQFWLRQ DV D SUHPLHU

PAGE 249

HVWDWH PDQXIDFWXULQJ D YDULHW\ RI VXSSOHPHQWDO SURGXFWV XVHG LQ VXJDU SURGXFWLRQ EXW QRW UHDGLO\ DYDLODEOH RWKHUZLVH 7KH WUDGHVPHQf§ZKHHOZULJKWV FDUSHQWHUV EODFNVPLWKV EDUUHOPDNHUV HWFf§UHVSRQVLEOH IRU PDQXIDFWXULQJ WKHVH VXSSOHPHQWDO SURGXFWV ZHUH VODYHV 7KHVH VODYHV ZHUH KLJKO\ VNLOOHG DQG WKH\ ZRXOG KDYH EHHQ H[SHQVLYH WR EX\ RU WUDLQ 1RW DOO HVWDWHV FRXOG DIIRUG VXFK DQ LQYHVWPHQW KRZHYHU 7KXV RQO\ D IHZ HVWDWHV RQ WKH LVODQG SHUIRUPHG VXFK VXSSOHPHQWDO PDQXIDFWXUH PDNLQJ WKHLU SURGXFWV DYDLODEOH WR RWKHU HVWDWHV IRU D IHH &RXUODQG ROG HVWDWH KRXVH LV WKH RQO\ HVWDWH KRXVH LQ 6W 'DYLGnV 3DULVK WKDW FRQWDLQHG D EURDG YDULHW\ RI DQFLOODU\ VWUXFWXUHV LQ DVVRFLDWLRQ 7KDW VXSSOHPHQWDO PDQXIDFWXUH ZDV HQJDJHG LQ DW &RXUODQG LV D OLNHO\ H[SODQDWLRQ IRU WKH SUHVHQFH RI WKHVH VWUXFWXUHV 1R GRFXPHQWDU\ UHFRUGV H[LVW RQ 7REDJR WR FRQILUP WKLV K\SRWKHVLV WKRXJK VXSSRUW LV SURYLGHG E\ WKH IDFW WKDW RQO\ RQH HVWDWH SURGXFHG PRUH VXJDU DQG UXP LQ WKDQ &RXUODQG 7KDW H[FHSWLRQ LV %HWVH\nV +RSH (VWDWH RIWHQ UHIHUUHG WR DV LW LV WRGD\ DV /RXLV Gn2U (VWDWHf LQ 6W 3DXOnV 3DULVK ZKLFK ZDV RZQHG E\ 6LU :LOOLDP
PAGE 250

WKH VLWHV RI VXSSOHPHQWDO PDQXIDFWXUH UDWKHU WKDQ RIILFHV LQ WKH PRGHUQ VHQVH WKRXJK WKLV FRXOG QRW EH FRQILUPHG LQ WKH ILHOG 7KH RZQHU RI 2UDQJH +LOO (VWDWH LQ WKH ODWH HLJKWHHQWK FHQWXU\ ZDV :LOOLDP /LQGVD\ ZKR ZDV DSSRLQWHG *RYHUQRU RI 7REDJR LQ 7KXV KH FRQIRUPV WR WKH H[SHFWHG VWDWLRQ RI D SUHPLHU HVWDWH RZQHU :KDW DUH KHUH GHILQHG DV SUHPLHU HVWDWHV DOVR H[LVWHG RQ $QWLJXD %HWW\nV +RSH ZDV HVWDEOLVKHG LQ FD DQG E\ KDG FRPH LQWR WKH KDQGV RI WKH &RGULQJWRQ IDPLO\ HYHQWXDOO\ EHFRPLQJ WKHLU IODJVKLS HVWDWH *RRGZLQ 3XOVLSKHU DQG *RRGZLQ f 7KH &RGULQJWRQnV ZHUH RQ D VRFLDO SDU ZLWK 6LU :LOOLDP
PAGE 251

DQG ROG %HWW\ ZDV YHU\ FDSDEOH LQ WKHP WKLQJV WRR 6PLWK DQG 6PLWK f 7KH (VWDWH 9LOODJH 7KH JHQHUDOO\ DFFHSWHG ORFDWLRQ RI WKH HVWDWH YLOODJH ZDV LQ D SHULSKHUDO EXW SUR[HPLF SRVLWLRQ WR WKH PDLQ FRPSOH[ /DQJH DQG +DQGOHU f $W &RXUODQG KRZHYHU WKH YLOODJH LV DGMDFHQW WR WKH HVWDWH KRXVH LQGLFDWLQJ WKDW RWKHU IDFWRUV ZHUH LQ RSHUDWLRQ 7KHVH IDFWRUV UHODWH WR &RXUODQGn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f LW PD\ KDYH EHHQ PRYHG IROORZLQJ WKH FKDQJHV LQ HVWDWH OD\RXW WKDW DFFRPSDQLHG HPDQFLSDWLRQ $V WKLV GLVFXVVLRQ LV SULPDULO\ FRQFHUQHG ZLWK YLOODJH ORFDWLRQ GXULQJ WKH SHULRG RI VODYHU\ WKH 2UDQJH +LOO YLOODJH LV QRW LQFOXGHG LQ WKLV DQDO\VLV

PAGE 252

WKH SODQWDWLRQ WR ZKLFK WKH\ DUH DWWDFKHG WKHLU KXWV DUH EXLOW RI VWRQH DQG FRYHUHG ZLWK VODWHV /DYD\VVH f 7KH DFFXUDF\ RI WKLV GHVFULSWLRQ LV ERUQH RXW E\ OLPLWHG VXUIDFH VXUYH\ RI *ROGHQ *URYH (VWDWH LQ 6W 3DWULFNnV 3DULVK RQH RI HVWDWHV UHIHUUHG WR LQ WKH DERYH TXRWH 7KHVH GDWD LQGLFDWH WKDW DW OHDVW VRPH SODQWHUV FRQVLGHUHG RUGHUOLQHVV ZLWKLQ WKH HVWDWH YLOODJH WR EH LPSRUWDQW ,QWHUQDOO\ RUGHUOLQHVV UHLQIRUFHG WKH UHJLPHQWHG VXJDU SURGXFWLRQ V\VWHP DQG WKH SRZHU RI WKH SODQWHU *RRGZLQ +LJPDQ 0F.HH f ([WHUQDOO\ LW HQKDQFHG WKH RYHUDOO SDWWHUQ RI HVWDWH UHJXODULW\ 3XOVLSKHU f $ '\QDPLF 3HUVSHFWLYH 7KH PRGHO SUHVHQWHG DERYH LV VWDWLF ,Q UHDOLW\ KRZHYHU VXJDU HVWDWHV WKURXJKRXW WKH &DULEEHDQ ZHUH PRGLILHG RQ D IUHTXHQW DQG UHJXODU EDVLV ZLWK PRGLILFDWLRQV UDQJLQJ IURP HTXLSPHQW XSJUDGHV (XEDQNV f WR WKH PRYLQJ RI HQWLUH HVWDWH FRPSOH[HV 3XOVLSKHU DQG *RRGZLQ f 7KH HVWDWHV RI 6W 'DYLGnV 3DULVK SURYLGH VHYHUDO H[DPSOHV RI VXFK PRGLILFDWLRQV 7KH HDUOLHVW DUFKDHRORJLFDOO\ UHFRJQL]DEOH PRGLILFDWLRQ RFFXUUHG DW $GYHQWXUH (VWDWH ZKHQ D QHZ VXJDU IDFWRU\ ZDV EXLOW EHWZHHQ DQG 7KH ROG IDFWRU\ LV ORFDWHG RQ D KLOOWRS LQ WKH ZHVWHUQ SRUWLRQ RI WKH HVWDWH $QRQ\PRXV f ZKHUH FDQH ZDV SURFHVVHG ZLWK D ZLQG SRZHUHG FUXVKLQJ

PAGE 253

PLOO %\ KRZHYHU
PAGE 254

RU LQGLJR FRIIHH RU FRFRDf ZDV WKHQ UHLQYHVWHG LQ VXJDU SURFHVVLQJ HTXLSPHQW )UDQNO\QnV DQG .LQJ 3HWHUnV (VWDWHV DUH SRRUO\ VXLWHG IRU ZLQG RU ZDWHU SRZHUHG PLOOV 6WHDP WKRXJK H[SHULPHQWDO DW WKH WLPH ZDV VHHQ DV D YLDEOH PHDQV RI VXJDU SURGXFWLRQ LQ WKH DEVHQFH RI DOWHUQDWLYH SRZHU VRXUFHV 7KH VWHDP HQJLQHV WKDW ZHUH IRUPHUO\ SUHVHQW DW )UDQNO\QnV DQG .LQJ 3HWHUnV (VWDWHV PD\ KDYH EHHQ ERXJKW E\ WKH RZQHUV DV IXQGV EHFDPH DYDLODEOH WKURXJK WKH SURGXFWLRQ RI RWKHU FURSV )URP RQZDUGV WKH DQWLVODYHU\ OREE\ PDGH VXJDU SURGXFWLRQ HYHU PRUH GLIILFXOW 'HVSLWH JURZLQJ HFRQRPLF DQG SROLWLFDO SUHVVXUH RQ WKH SODQWHUV DW OHDVW VRPH FRQWLQXHG WR UHLQYHVW ZKDW FDSLWDO ZDV DYDLODEOH WR WKHP LQ VXJDU SURGXFWLRQ HTXLSPHQW (XEDQNV f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f

PAGE 255

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f WR EH VXEVHTXHQWO\ UHSODFHG E\ D QHZ VWUXFWXUH DW WKH QHZ ORFDWLRQ $ IDFWRU WKDW (XEDQNV GRHV QRW GLVFXVV EXW ZKLFK PD\ KDYH FRQWULEXWHG WR WKH WHQGHQF\ WR UHLQYHVW ZDV DQ LQIOX[ RI QHZ LPPLJUDQWV DQG SUHVXPDEO\ QHZ FDSLWDO LQ WKH SHULRG IROORZLQJ WKH HVWDEOLVKPHQW RI HQFXPEHUHG HVWDWH FRXUWV RQ 7REDJR LQ %HWZHHQ DQG HYHU\ HVWDWH LQ 6W 'DYLGnV 3DULVK FKDQJHG KDQGV 7DEOH f %DVHG RQ WKH VXUQDPHV RI WKH RZQHUV WKLV UHSUHVHQWV QRW D SDVVLQJ RQ RI SURSHUW\ DW WKH WLPH RI GHDWK EXW WKH DEDQGRQPHQW RI VXJDU SURGXFWLRQ E\ WKH ROG HVWDEOLVKHG IDPLOLHV RI 7REDJR 7KH HQWKXVLDVP RI WKH QHZFRPHUV LV UHIOHFWHG LQ WKH UHPDLQV RI VXJDU HVWDWHV 2I WKH GDWHG PLOOLQJ HTXLSPHQW HQFRXQWHUHG

PAGE 256

GXULQJ WKH VXUYH\ DQG E\ (XEDQNV LQ DOO GDWH WR WKH PLGQLQHWHHQWK FHQWXU\ ,Q DGGLWLRQ VL[ RI WKH LGHQWLILHG ZLQGPLOOV LQ 6W 'DYLGnV 3DULVK ZHUH SUREDEO\ FRQVWUXFWHG GXULQJ WKLV SHULRG DV ZHOO &RORQLDO UHFRUGV ZULWWHQ LQ &2 f LQGLFDWH WKDW RQO\ VXJDU IDFWRULHV ZHUH EXLOW HQWLUHO\ RI VWRQH RU EULFN ZKLOH ZLQGPLOOV ZHUH SULPDULO\ ZRRGHQ VWUXFWXUHV RQ D ORZ VWRQH IRXQGDWLRQ %\ WKH ODWH V KRZHYHU WKH VWDQGLQJ ZLQGPLOO WRZHU DW 2UDQJH +LOO (VWDWH KDG EHHQ EXLOW $QRQ\PRXV QGf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

PAGE 257

7KH LQLWLDO \HDUV RI VHWWOHPHQW ZHUH SUREDEO\ WKH PRVW GLIILFXOW WLPH IRU VODYHV ,Q LWV SULVWLQH VWDWH 7REDJR ZDV FRYHUHG LQ GHQVH IRUHVW RI SUHGRPLQDQWO\ WURSLFDO KDUGZRRGV 1LGGULH f %HIRUH FURSV FRXOG EH SODQWHG WKH ODQG KDG WR EH FOHDUHG 7KLV DUGXRXV WDVN IHOO WR WKH VODYHV EURXJKW WR WKH LVODQG GXULQJ WKH LQLWLDO SHULRG RI %ULWLVK VHWWOHPHQW 7KH GLIILFXOW\ RI FOHDULQJ ZDV UHFRJQL]HG E\ WKH 7REDJR SODQWHUV DQG WKH\ VHOHFWHG WKHLU VODYHV DFFRUGLQJO\ $OWKRXJK WKH VH[ UDWLR DPRQJ VODYHV ZRXOG GHFUHDVH UDSLGO\ LQ WKH IROORZLQJ \HDUV LQ WKHUH ZHUH RQO\ IHPDOH VODYHV RQ WKH LVODQG DV RSSRVHG WR PDOHV
PAGE 258

FRQGLWLRQV ,W LV XQOLNHO\ WKDW WKH ZHOO FRQVWUXFWHG VODYH KRXVHV FKDUDFWHULVWLF RI ODWHU \HDUV ZHUH EXLOW DW VXFK DQ HDUO\ GDWH *LYHQ WKUHH GRFXPHQWHG VODYH LQVXUUHFWLRQV LQ DQG (QJOLVK PHUFKDQWV ZHUH XQZLOOLQJ WR UHFRJQL]H 7REDJR VHFXULWLHV DQG DOORZ DGYDQFHV DJDLQVW WKHP $FFRUGLQJO\ ZLWK WKH SHUPLVVLRQ RI SDUOLDPHQW SODQWHUV PRUWJDJHG SRUWLRQV RI WKHLU SURSHUW\ WR WKH 'XWFK
PAGE 259

ZLQGRZV DQG D FHUDPLF WLOH URRI 7KH SUHVHQFH RI ZLQGRZ JODVV DQG UHGZDUH WLOLQJ WKURXJKRXW WKH VLWH LQGLFDWHV WKDW RWKHU VLPLODU VWUXFWXUHV ZHUH SUHVHQW WKRXJK QRQH ZHUH LGHQWLILHG GXULQJ WKH VXUYH\ 'XSOH[ VWUXFWXUHV DW &DQQRQnV 3RLQW 3ODQWDWLRQ *HRUJLDf DUH WKRXJKW WR KDYH KRXVHG WZR IDPLOLHV DSLHFH RU SHUKDSV WZR JHQHUDWLRQV RI WKH VDPH IDPLO\ 0DF)DUODQH 2WWR f DQG WKH VDPH PD\ EH WUXH RI WKH 7REDJR VWUXFWXUH 7KH FRQVWUXFWLRQ DQG VL]H RI 6WUXFWXUH % FRQIRUP ZHOO ZLWK GHVFULSWLRQV RI VODYH KRXVLQJ LQ WKH KLVWRULF UHFRUG IRU 7REDJR (GZDUGV YRO f 7KH SUHVHQFH RI D FRQWLQXRXV VWRQH IRXQGDWLRQ XWLOL]LQJ ODUJHU VWRQHV RQ WKH GRZQVORSH VLGH FORVHO\ PDWFKHV $UPVWURQJnV GHVFULSWLRQ RI H[FDYDWHG VODYH DSSUHQWLFH DQG IUHHODERUHU KRXVLQJ RQ -DPDLFD WKRXJK WKH GLPHQVLRQV RI LQGLYLGXDO URRPV DUH VOLJKWO\ ODUJHU DW 6WUXFWXUH % ZKHQ FRPSDUHG WR -DPDLFDQ VODYH DQG IUHHODERUHU KRXVLQJ DQG VOLJKWO\ VPDOOHU WKDQ DSSUHQWLFH KRXVLQJ f -DPDLFDQ VWUXFWXUHV KDG VKXWWHUHG UDWKHU WKDQ JOD]HG ZLQGRZV KRZHYHU DQG $UPVWURQJ PDNHV QR UHIHUHQFH WR WLOHG URRIV DOWKRXJK VODWH PD\ KDYH EHHQ XVHG WR URRI FRRNLQJ DUHDV $UPVWURQJ f )RU VXEVLVWHQFH 7REDJRnV VODYHV UHOLHG RQ ORFDOO\ SURGXFHG VWDSOHV VXSSOHPHQWHG E\ LPSRUWHG IRRGVWXIIV IURP 1RUWK $PHULFD 'XULQJ LQLWLDO VHWWOHPHQW D SHULRG ZKHQ WKH VODYHV ZHUH XQIDPLOLDU ZLWK WKHLU QHZ HQYLURQPHQW ORFDO

PAGE 260

SURGXFWLRQ ZDV DFFRPSOLVKHG E\ VXSHUYLVHG JDQJ ODERU 0DUVKDOO f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f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f 7KH WDVN V\VWHP LV JHQHUDOO\ DVVRFLDWHG ZLWK FRWWRQ DQG ULFH SURGXFWLRQ LQ WKH 6RXWKHUQ 8QLWHG 6WDWHV ZKLOH JDQJ ODERU LV DVVRFLDWHG ZLWK VXJDU SURGXFWLRQ 6HH 0RUJDQ > DQG @ IRU DQ H[WHQGHG GLVFXVVLRQ RI RULJLQV RI WKH WDVN V\VWHP DQG WKH UDPLILFDWLRQV RI VXFK D IRUP RI ODERU RUJDQL]DWLRQf

PAGE 261

FRQIRUPV WR WKLV K\SRWKHVLV SURGXFLQJ MXVW XQGHU ILYH DUWLIDFWV SHU VKRYHO WHVW DW D PHWHU LQWHUYDOf ,Q FRQWUDVW $UHD LGHQWLILHG DV WKH YLOODJH E\ ERWK WKH &DUWH 0LOLWDLUH DQG WKH SUHVHQFH RI DUFKLWHFWXUDO UHPDLQV SURGXFHG D PXFK KLJKHU DUWLIDFW GHQVLW\ ,Q WULSOH WKH DFUHDJH RQ HVWDWHV ZDV JLYHQ RYHU WR SURYLVLRQLQJ LQ UHVSRQVH WR DQ HPEDUJR RQ H[SRUW WR WKH &DULEEHDQ E\ WKH 8QLWHG 6WDWHV
PAGE 262

WKH FDVH LW UHIOHFWV D JURZLQJ VODYH SRZHUEDVH RQ WKH LVODQG 7KLV SRZHUEDVH ZDV GHULYHG IURP WKH VODYHV SRVLWLRQ DV ODERUHUV RQ WKH HVWDWH :KLOH WKH\ FRXOG QRW HDVLO\ ZLWKKROG WKHLU VHUYLFHV ZLWKRXW IDFLQJ UHSULVDOV WKH\ FRXOG ZRUN DW D UHGXFHG SDFH VORZLQJ SURGXFWLRQ DQG RWKHUZLVH GLVUXSWLQJ WKH ZRUNLQJV RI WKH HVWDWH $Q DOWHUQDWLYH PHWKRG RI HPSRZHUPHQW ZDV SUDFWLFHG E\ WKH VODYHV ZKR ZRUNHG DW WKH HVWDWH KRXVHV LQ GLUHFW FRQWDFW ZLWK WKH SODQWHU DQG KLV IDPLO\ 7KHVH VODYHVf§ VHDPVWUHVVHV FRRNV ZDVKHUV HWFf§ UHIXVHG WR ZRUN DW DQ\ WDVN EXW WKH RQH WKH\ ZHUH VSHFLILFDOO\ UHVSRQVLEOH IRU 7KXV D FRRN ZRXOG QRW VHZ D VHDPVWUHVV ZRXOG QRW ZDVK DQG D ZDVKHU ZRXOG QRW FRRN &2 f 6XQGD\V DQG 7KXUVGD\V ZHUH UHVHUYHG IRU ZRUNLQJ SURYLVLRQ JURXQGV DQG IRU PDUNHWLQJ $W WKH PDUNHW VODYHV VROG SLJV SRXOWU\ YHJHWDEOHV DQG IUXLWV ZKLOH WKH\ ERXJKW FRWWRQV WULQNHWV FURFNHU\ VRDS DQG WREDFFR
PAGE 263

$QG 0LVV .LWW\ 0LVV $QQD DQG 0LVV 5LWD KDQGVRPHVW RI EODFNJLUOV DUH WR EH VHHQ YLQ WRXUn RQ HYHU\ SODQWDWLRQ VLWWLQJ XQGHU D WUHH QHDU WKH PDQVLRQ KRXVH ZLWK D &KDUDLE EDVNHW EHIRUH WKHP FRQWDLQLQJ DQ DVVRUWPHQW IRU 0DVVD RU IRU 1HJURH
PAGE 264

GHFRUDWHG FHUDPLF W\SHV 0LOOHU f LQGLFDWHV WKDW WKH FHUDPLFV ZHUH ERXJKW RQ D EXGJHW :KLOH WKLV DUJXHV DJDLQVW WKH SRVVLELOLW\ WKDW WKH\ DUH KDQGPH GRZQV JLYHQ WR VODYHV DIWHU XVH E\ WKH SODQWHU DQG KLV IDPLO\ LQ WKH HVWDWH KRXVH WKH SUHVHQFH RI PRUH H[SHQVLYH GHFRUDWHG ZDUHV PD\ EH H[SODLQHG E\ VXFK DFWLRQV 7KH IUHTXHQF\ RI SODLQ FUHDPZDUH PD\ UHIOHFW WKDW RWKHU FHUDPLFV ZHUH DFTXLUHG E\ SODQWHUV IRU WKH XVH RI WKHLU VODYHV 7KH UHODWLYH DEVHQFH RI ORFDOO\ PDGH FHUDPLFV VXSSRUWV WKLV FRQWHQWLRQ DV EHLQJ ERWK FKHDS DQG ZHOO VXLWHG WR SUHVXPHG VODYH IRRGZD\V HJ )HUJXVRQ f WKHLU IUHTXHQF\ ZRXOG KDYH LQFUHDVHG KDG VODYHV DFTXLUHG WKHLU RZQ FHUDPLFV 7KH FKDUDFWHU RI WKH GHSRVLW ZLWKLQ 6WUXFWXUH $ DW WKH &RXUODQG HVWDWH YLOODJH LV DQRPDORXV $V GLVFXVVHG LQ &KDSWHU IXOO\ D WKLUG RI WKH PDWHULDOV UHFRYHUHG IURP WKLV SURYHQLHQFH DUH (XURSHDQ FHUDPLFV DV FRPSDUHG WR RQO\ VOLJKWO\ PRUH WKDQ b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

PAGE 265

& DUJXHV IRU D ODWHU GDWH 7KH YDULHW\ RI WKH PDWHULDO UHFRYHUHG LQFOXGLQJ D ILQHO\ GHFRUDWHG EHDG SDUW RI D JREOHW WZR RI WKH WKUHH EXWWRQV IURP WKH VLWH DQG D IXUQLWXUH WDFN PD\ LQGLFDWH WKDW WKH HFRQRPLF VWDWXV RI 7REDJRnV VODYHV URVH WKURXJK WLPH 0RUH OLNHO\ KRZHYHU WKHVH PDWHULDOV UHSUHVHQW WKH UHWHQWLRQ RI YDOXHG REMHFWV 7KH PHDQ FHUDPLF GDWH RI YHUVXV IRU WKH VLWH DV D ZKROHf VXSSRUWV WKLV FRQFOXVLRQ DV GRHV WKH LQFUHDVHG SUHVHQFH RI WUDQVIHU SULQWHG ZDUHV 7ZHQW\WKUHH SHUFHQW RI WKH WLQ HQDPHOHG FHUDPLFV IURP 6WUXFWXUH $ DUH WUDQVIHU SULQWHG DV FRPSDUHG WR RQO\ b IURP WKH YLOODJH VLWH DV D ZKROH &RQVWUXFWLRQ RI 6WUXFWXUH $ GHVWUR\HG DQ\ ILUP HYLGHQFH RI HDUOLHU IHDWXUHV H[FDYDWHG LQWR WKH IORRU RI 6WUXFWXUH % RU & 6XFK FDFKH SLWV ZHUH D IUHTXHQW RFFXUUHQFH DW 1RUWK $PHULFDQ VODYH VLWHV HJ .HOVR f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

PAGE 266

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
PAGE 267

PDUNHUV 2WWR f )LQDOO\ EOXH EHDGV LQ SDUWLFXODU KDYH EHHQ YLHZHG DV KDYLQJ KDG V\PEROLF LPSRUWDQFH IRU PDQ\ $IULFDQ JURXSV D V\PEROLVP WKDW ZDV WUDQVIHUUHG WR WKH 1HZ :RUOG 6WLQH DQG &DEDN &DEDN DQG *URRYHU f :KLOH DOO WKHVH LQWHUSUHWDWLRQV PD\ SRVVHVV VRPH GHJUHH RI YDOLGLW\ %URZQ DQG &RRSHU f WKH K\SRWKHVLV WKDW V\PEROLF YDOXH ZDV DWWDFKHG WR EOXH EHDGV RU WR EHDGV RI DQ\ FRORU LV OLNHO\ WR \LHOG WKH PRVW LPSRUWDQW UHYHODWLRQV DERXW $IULFDQ FXOWXUH LQ WKH 1HZ :RUOG &DEDN 6WLQH DQG *URRYHU 6WLQH DQG &DEDN &DEDN DQG *URRYHU f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

PAGE 268

3HUKDSV EHFDXVH PRVW EHDG ILQGV RQ $IULFDQ $PHULFDQ VLWHV DUH VXEMHFWHG WR SDWWHUQ DQDO\VLV GHVSLWH HWKQRJUDSKLF GDWD DQG DUFKDHRORJLFDO LQWHUSUHWDWLRQV WKDW LQGLFDWH WKH\ PD\ KDYH IXQFWLRQHG DV PRUH WKDQ MXVW FORWKLQJ RU SHUVRQDO DGRUQPHQW WKH DUFKDHRORJLFDO FRQWH[W RI EHDGV KDV QRW EHHQ FULWLFDOO\ H[DPLQHG %URZQ DQG &RRSHU f KDYH GHPRQVWUDWHG WKDW D PRUH HQOLJKWHQHG UHDGLQJ RI WKH DVVRFLDWLRQV SUHVHQW LQ WKH DUFKDHRORJLFDO UHFRUG FDQ OHDG WR PRUH FXOWXUDOO\ UHOHYDQW LQWHUSUHWDWLRQV RI $IULFDQ $PHULFDQ VLWHV %HDG FRQWH[WV PXVW EH DSSURDFKHG ZLWK WKH VDPH FULWLFDO H\H EHIRUH WKHLU V\PEROLF DWWULEXWHV FDQ EH VXFFHVVIXOO\ DUJXHG IURP DQ HPSLULFDO SODWIRUP )UHH %ODFNV DQG ,QGLJHQRXV ,QKDELWDQWV 7KH IUHH EODFN SRSXODWLRQ RI 7REDJR OLNH WKDW RI RWKHU %ULWLVK &DULEEHDQ LVODQGV ZDV QHYHU YHU\ ODUJH QXPEHULQJ RQO\ LQ
PAGE 269

KRXVHNHHSHUV E\ RSXOHQW SODQWHUV GHFHDVHG
PAGE 270

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f WKHLU YHU\ SUHVHQFH LQ WKH &RXUODQG HVWDWH YLOODJH LQ WKH DEVHQFH RI HYLGHQFH WKDW WKH VLWH ZDV SUHYLRXVO\ RFFXSLHG E\ $PHULQGLDQ JURXSV GLFWDWHV WKDW WKH\ EH PLQLPDOO\ GHILQHG DV &RORQR ZDUHV 'HDJDQ )HUJXVRQ f )UHH /DERUHUV (PDQFLSDWLRQ RQ 7REDJR RFFXUUHG LQ IROORZLQJ D SHULRG RI DSSUHQWLFHVKLS GXULQJ ZKLFK VODYHV ZHUH WR EH DFFXVWRPHG WR WKHLU QHZ UHVSRQVLELOLWLHV DV IUHH ODERUHUV 7KDW WKH DSSUHQWLFHV ZHUH QRW DOZD\V ZLOOLQJ SDUWLFLSDQWV LQ WKLV SURFHVV LV LQGLFDWHG E\ WKH RFFXUUHQFH RI DW OHDVW WZR VWULNHV LQ (PDQFLSDWLRQ EURXJKW JUHDW FKDQJH WR 7REDJR FKDQJH WKDW HIIHFWHG QRW RQO\ WKH IRUPHU VODYHV EXW WKH (XURSHDQV ZKR UHOLHG XSRQ WKHP IRU ODERU 0LQW] f KDV DUJXHG

PAGE 271

WKDW IROORZLQJ HPDQFLSDWLRQ RQ LVODQGV WKDW KDG DYDLODEOH ODQG IUHHG VODYHV UDSLGO\ TXLW WKH HVWDWHV WR SXUVXH D SHDVDQW OLYHOLKRRG 2Q 7REDJR WKLV WUDQVODWHG LQWR DQ HDUO\ WHQGHQF\ IRU ZRUNHUV WR TXLW WKH HVWDWHV LQ IDYRU RI VPDOO YLOODJHV PDQ\ RI ZKLFK VSUDQJ XS LQ WKH YLFLQLW\ RI WKH VHYHUDO FKXUFKHV DQG FKDSHOV EXLOW LQ WKH \HDUV LPPHGLDWHO\ SUHFHGLQJ DQG IROORZLQJ HPDQFLSDWLRQ 'RZODQG f VXFK DV WKH $QJOLFDQ FKDSHO DW /HV &RWHDX[ 7KH IOLJKW IURP WKH HVWDWHV LQ WKH PRQWKV LPPHGLDWHO\ IROORZLQJ HPDQFLSDWLRQ ZDV OHVV RI DQ LVVXH RQ 7REDJR WKDQ LW PD\ KDYH EHHQ RQ RWKHU LVODQGV 1LGGULH f ,Q SDUW WKLV LV DWWULEXWHG WR D FODXVH LQ WKH 7REDJR $EROLWLRQ $FW UHTXLULQJ SODQWHUV WR SURYLGH SURYLVLRQ JURXQGV ZLWKLQ WKUHH PLOHV RI WKH HVWDWH 7KRVH ODERUHUV ZKR UHPDLQHG RQ WKH HVWDWHV DQG FRQWLQXHG WR SURYLGH WKHLU VHUYLFHV ZHUH DOORZHG WR FRQWLQXH IRU D IHH WKHLU UHVLGHQFH LQ HVWDWH KRXVLQJ DQG WKHLU XVH RI SURYLVLRQ JURXQGV SURYLGHG E\ WKH HVWDWH 7KH\ ZHUH DOVR SURYLGHG D ZDJH RI S SHU GD\ LQ f IRU WKH ZRUN WKH\ SHUIRUPHG 5LYLHUH f ,Q WKH HYHQW WKDW IUHH ODERUHUV UHIXVHG WR ZRUN RQ WKH HVWDWH RQ ZKLFK WKH\ ZHUH KRXVHG WKH\ IRUIHLWHG WKHLU ULJKW WR KRXVLQJ DQG SURYLVLRQ JURXQGV DV ZHOO DV WKHLU SD\ ,Q HIIHFW SODQWHUV FRHUFHG IUHH ODERUHUV WR VWD\ RQ WKH HVWDWHV E\ WKUHDWV WR HMHFW WKH ODERUHUV IURP WKHLU KRPHV 5LYLHUH f ,W ZDV D SRZHUIXO WKUHDW DV GXULQJ \HDUV RI RFFXSDWLRQ VODYHV KDG EHFRPH DWWDFKHG WR WKHLU

PAGE 272

YLOODJHV DQG DIWHU HPDQFLSDWLRQ PDQ\ EHOLHYHG WKDW YLOODJH RZQHUVKLS KDG SDVVHG WR WKHP 7KLV EHOLHI H[WHQGHG WR RZQHUVKLS RI WKH SURYLVLRQ JURXQGV DV ZHOO +DOO 0LQW] f $V RQ RWKHU LVODQGV SODQWHU HIIRUWV WR UHWDLQ WKHLU ZRUNIRUFH LQ FRQGLWLRQV VLPLODU WR WKRVH RI VODYHU\ IDLOHG 8OWLPDWHO\ WKH SODQWHUVn WKLQO\ YHLOHG DWWHPSWV WR PDLQWDLQ WKH SUHHPDQFLSDWLRQ VWDWXV TXR WKURXJK FRHUFLRQ DOLHQDWHG WKH ZRUN IRUFH WR VXFK D GHJUHH WKDW ODERUHU GHVHUWLRQ EHFDPH LQFUHDVLQJO\ FRPPRQ 2Q 7REDJR WKH WHQGHQF\ WR GHVHUW WKH HVWDWHV ZDV DSSDUHQWO\ HQDEOHG OHVV E\ WKH DYDLODELOLW\ RI XQFODLPHG ODQG DV DVVHUWHG E\ 0LQW] f DQG PRUH E\ WKH DYDLODELOLW\ RI FXUUHQF\ 7KH SXUFKDVLQJ SRZHU RI WKH ODERUHUV D SXUFKDVLQJ SRZHU ZKLFK EHJDQ WR GHYHORS XQGHU VODYHU\ DOORZHG WKHP WR EX\ ODQG UDWKHU WKDQ DFTXLUH ODQG E\ RWKHU PHDQV &RQWHPSRUDU\ REVHUYHUV QRWHG YHU\ OLWWOH VTXDWWLQJ RQ FURZQ ODQGV RU XQFXOWLYDWHG HVWDWH ODQGV GXULQJ WKH SRVWHPDQFLSDWLRQ HUD LQ 1LGGULH f 7KH HIIRUWV RI 7REDJRnV ODERUHUV WR DFTXLUH ODQG ZHUH DEHWWHG E\ SODQWHU UHVSRQVHV WR DEHUUDQW FOLPDWLF FRQGLWLRQV LQ WKH LPPHGLDWHO\ SUH DQG SRVWHPDQFLSDWLRQ \HDUV 7KH FRQGLWLRQV WRRN WKH IRUP RI D VXFFHVVLRQ RI VHYHUH GURXJKWV ODVWLQJ IURP WR WKDW VHULRXVO\ DIIHFWHG VXJDU SURGXFWLRQ RQ WKH LVODQG 1LGGULH f 7KH UHVXOWV RI WKH GURXJKW ZHUH JUHDWO\ H[DFHUEDWHG E\ WKH +XUULFDQH RI ,Q DQ HIIRUW WR UDLVH FDSLWDO DV ZHOO DV UHWDLQ

PAGE 273

ODERUHUV GXULQJ WKLV SHULRG 7REDJR SODQWHUV ZHUH IRUFHG WR VHOO WKHLU ZRUNHUV VPDOO SDUFHOV RU ODUJHU EORFNV RI ODQG RQ WKH ERUGHUV RI WKHLU HVWDWHV 7KRXJK WKLV ODQG ZDV PDUJLQDO IRU FDQH SURGXFWLRQ LWV ORVV ZDV NHHQO\ IHOW 1LGGULH f 7KH IUDJPHQWDWLRQ RI HVWDWHV WKDW UHVXOWHG ZDV PRVW SUHYDOHQW LQ WKH &RXUODQG 5LYHU YDOOH\ GRPLQDWHG E\ 6W 'DYLGnV 3DULVK %\ WKH &RXUODQG 5LYHU YDOOH\ KDG EHHQ DOPRVW HQWLUHO\ GHQXGHG RI WUHHV :KLOH WKH SODQWHU HIIRUWV PD\ KDYH VXFFHVVIXOO\ UDLVHG FDSLWDO WKH\ DOVR IXUWKHU HQKDQFHG WKH DELOLW\ RI ODERUHUV WR SXUVXH DQ LQGHSHQGHQW OLYHOLKRRG %\ WKH SODQWHUnV HIIRUWV WR UDLVH FDSLWDO E\ VHOOLQJ ODQG WR WKHLU ODERUHUV KDG DOORZHG XS WR SHUFHQW RI WKH ZRUNIRUFH WR TXLW WKH HVWDWHV 5LYLHUH f %\ DFTXLULQJ ODQG WKH $IURWREDJRQLDQ SRSXODWLRQ RI 7REDJR DFTXLUHG WKH IUHHGRP LQ IDFW WKDW KDG EHHQ JLYHQ WR WKHP E\ ODZ LQ 7KRXJK LQGHSHQGHQWO\ SRVVHVVLQJ WKH PHDQV WR DQ DGHTXDWH OLYHOLKRRG E\ YLUWXH RI WKHLU VWDWXV DV ODQGRZQHUV KRZHYHU PDQ\ IUHHKROGHUV FRQWLQXHG WR SDUWLFLSDWH LQ VXJDU SURGXFWLRQ %\ WKH QXPEHU RI IUHHKROGV KDG ULVHQ WR IURP LQ 5LYLHUH f :LWK IHZHU ODERUHUV WR ZRUN WKHLU ILHOGV WKH SODQWHUV LQVWLWXWHG D V\VWHP RI PHWD\DJH 7KH DSSDUHQW VXFFHVV RI PHWD\DJH RQ 7REDJR LV DWWHVWHG WR E\ WKH IDFW WKDW LW ZDV NHSW LQ SODFH XQWLO WKH V ZKHQ VXJDU SURGXFWLRQ HIIHFWLYHO\ FHDVHG $ ORFDO

PAGE 274

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nV SLRQHHULQJ 3UHKLVWRULF 6HWWOHPHQW 3DWWHUQV RI WKH 9LU 9DOOH\ LQ VHWWOHPHQW SDWWHUQ VWXGLHV KDYH EHHQ D XVHIXO WRRO LQ WKH SUHKLVWRULF DUFKDHRORJLFDO NLW +LVWRULFDO DUFKDHRORJLVWV KDYH DOVR XVHG VHWWOHPHQW SDWWHUQV WR WKHLU DGYDQWDJH HJ $GDPV /HZLV 3D\QWHU

PAGE 275

:DUUHQ DQG 2n%ULHQ f 'HVSLWH WKH XWLOLW\ RI VHWWOHPHQW SDWWHUQ VWXGLHV KRZHYHU SODQWDWLRQ DUFKDHRORJLVWV KDYH UDUHO\ IRFXVHG RQ D UHJLRQDO GDWDEDVH GXULQJ ILHOGZRUN FRQFHQWUDWLQJ LQVWHDG RQ LQGLYLGXDO VLWHV 2QO\ GXULQJ WKH DQDO\VLV VWDJH KDV FRPSDUDWLYH GDWD EHHQ XWLOL]HG 3ODQWDWLRQ DUFKDHRORJLVWV LQ WKH VRXWKHDVWHUQ 8QLWHG 6WDWHV KDYH IRFXVHG SULPDULO\ RQ TXHVWLRQV RI SODQWDWLRQ VRFLDO VWUXFWXUH HJ /HZLV 2UVHU 2WWR f DQG VODYH OLIHZD\V HJ %URZQ DQG &RRSHU :KHDWRQ DQG *DUURZ f ,Q SDUW WKLV UHIOHFWV WKH VWDWHPHQW WKDW KLVWRULFDO DUFKDHRORJ\ FDQ PDNH WKH JUHDWHVW FRQWULEXWLRQV WKURXJK VWXGLHV RI LVVXHV IRU ZKLFK WKHUH LV VLPSO\ LQDGHTXDWH GRFXPHQWDWLRQ 'HDJDQ f 7KXV VODYHV DQG WKHLU SODFH LQ WKH SODQWDWLRQ SRZHU VWUXFWXUH FRQVWLWXWH LPSRUWDQW VXEMHFWV EHFDXVH WKH\ DUH UDUHO\ GLVFXVVHG LQ WKH KLVWRULFDO GRFXPHQWV /LNH WKRVH RI WKHLU 1RUWK $PHULFDQ FRXQWHUSDUWV UHVHDUFK TXHVWLRQV RI SODQWDWLRQ DUFKDHRORJLVWV LQ WKH &DULEEHDQ KDYH SULPDULO\ IRFXVHG RQ LVVXHV UHODWLQJ WR VODYHV 7KH PRVW VXFFHVVIXO HIIRUWV KDYH EHHQ WKRVH ZKLFK HOXFLGDWH $IULFDQ UHWHQWLRQV DQG FXOWXUDO FKDQJH LQ WKH VODYH SRSXODWLRQ )RU H[DPSOH +DQGOHU DQG /DQJH f KDYH FORVHO\ H[DPLQHG WKHVH LVVXHV ZLWK UHJDUG WR PRUWXDU\ SDWWHUQV RQ %DUEDGRV ZKLOH $UPVWURQJ f KDV VWXGLHG WKH

PAGE 276

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

PAGE 277

VWDWHG E\ &OHODQG f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

PAGE 278

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

PAGE 279

5()(5(1&(6 &,7(' $GDPV :LOOLDP +DPSWRQ /DQGVFDSH $UFKDHRORJ\ /DQGVFDSH +LVWRU\ DQG WKH $PHULFDQ )DUPVWHDG +LVWRULFDO $UFKDHRORJ\ fc $QRQ\PRXV QG 3ODQ RI WKH 2UDQJH +LOO DQG $PLW\ +RSH (VWDWHV LQ WKH 3DULVK RI 6W 'DYLG ,VODQG RI 7REDJR .LQJ t &R /LPLWHGf/RQGRQ $ PDS RI WKH ,VODQG DQG D 3ODQ RI WKH VHWWOHPHQW RI 7REDJR LQ WKH :HVW ,QGLHV LQ /D 0LVH HQ 9DOHXU GH nOLH GH 7DEDTR f -HDQ&ODXGH 1DUGLQf 0RXWRQ t &Rc3DULV 3ODWH ,,, &DUWH 0LOLWDLUH GH OnOOH GH 7DEDJR $UFKLYHV 1DFLRQDOH )UDQFH $UFKLEDOG 'RXJODV 7REDJR 0HODQFKRO\ ,VOH 9ROXPH 2QH :HVWLQGLDQD /WGc3RUW RI 6SDLQ 7ULQLGDG $UPVWURQJ 'RXJODV 9 7KH 2OG 9LOODJH DW 'UD[ +DOO 3ODQWDWLRQ $Q $UFKDHRORJLFDO ([DPLQDWLRQ RI DQ $IUR-DPDLFDQ 6HWWOHPHQW 8QLYHUVLW\ 0LFURILOPVc$QQ $UERU 0LFKLJDQ 7KH 2OG 9LOODJH DQG WKH *UHDW +RXVH $Q $UFKDHRORJLFDO DQG +LVWRULFDO ([DPLQDWLRQ RI 'UD[ +DOO 3ODQWDWLRQ 6W $QQnV %D\ -DPDLFD 8QLYHUVLW\ RI ,OOLQRLV 3UHVVc&KLFDJR %DWLH 5REHUW &DUO\OH :K\ 6XJDU" (FRQRPLF &\FOHV DQG WKH &KDQJLQJ RI 6WDSOHV RQ WKH (QJOLVK DQG )UHQFK $QWLOOHV LQ &DULEEHDQ 6ODYH 6RFLHW\ DQG (FRQRP\ +LODU\ %HFNOHV DQG 9HUHQH 6KHSKHUG HGVf ,DQ 5DQGOH 3XEOLVKHUV /WGc.LQJVWRQ -DPDLFD 3S %HDWWLH -RKQ %XQYRUR $Q $IULFDQ .LQJGRP +ROW 5LQHKDUW DQG :LQVWRQc1HZ
PAGE 280

%HFNIRUG :LOOLDP $ 'HVFULSWLYH $FFRXQW RI WKH ,VODQG RI -DPDLFD 7 DQG (JHUWRQ/RQGRQ %HQMDPLQ 3DUN HGLWRUf $SSOHWRQnV &\FORSDHGLD RI $SSOLHG 0HFKDQLFV $ 'LFWLRQDU\ RI 0HFKDQLFDO (QJLQHHULQJ DQG WKH 0HFKDQLFDO $UWV 9ROXPH f $SSOHWRQ DQG &RPSDQ\1HZ
PAGE 281

&DUULQJWRQ 6HOZ\Q + + 7KH $PHULFDQ 5HYROXWLRQ DQG WKH %ULWLVK :HVW ,QGLHVn (FRQRP\ LQ %ULWLVK &DSLWDOLVP DQG &DULEEHDQ 6ODYHU\ 7KH /HJDF\ RI (ULF :LOOLDPV 6RORZ DQG (QJHUPDQ HGVf &DPEULGJH 8QLYHUVLW\ 3UHVV1HZ @ 7KH :HVW ,QGLHV %HIRUH DQG 6LQFH 6ODYH (PDQFLSDWLRQ )UDQN &DVV t &R /WG/RQGRQ 'HDJDQ .DWKOHHQ $UWLIDFWV RI WKH 6SDQLVK &RORQLHV RI )ORULGD DQG WKH &DULEEHDQ 9ROXPH &HUDPLFV *ODVVZDUH DQG %HDGV 6PLWKVRQLDQ ,QVWLWXWLRQ 3UHVV:DVKLQJWRQ $YHQXHV RI ,QTXLU\ LQ +LVWRULFDO $UFKDHRORJ\ LQ $GYDQFHV LQ $UFKDHRORJLFDO 0HWKRG DQG 7KHRU\ 9RO 0LFKDHO 6FKLIIHU HGf $FDGHPLF 3UHVV1HZ
PAGE 282

'RZODQG .D\H /HWWHU DQG 5HWXUQV E\ .D\H 'RZODQG 6SHFLDO 0DJLVWUDWH ,QVSHFWRU RI -DLOV DQG 3ULYDWH 6HFUHWDU\ 6FDUERURXJK 7REDJR 0V PLVVLQJ IURP WKH 7REDJR $UFKLYHV (GZDUGV %U\DQ 7KH +LVWRU\ &LYLO DQG &RPPHUFLDO RI WKH %ULWLVK :HVW ,QGLHV YROXPHVf /RQGRQ (XEDQNV 7KRPDV +DOHV &RXUODQG (VWDWH 7KH +LVWRULF 6WUXFWXUHV 5XLQV DQG $VVRFLDWHG $UFKDHRORJLFDO $UHDV 5HSRUW VXEPLWWHG WR /DXJKOLQ DQG $VVRFLDWHV /WG DQG 7RZQ DQG &RXQWU\ 3ODQQLQJ 5HSXEOLF RI 7ULQLGDG DQG 7REDJR 6XJDU 6ODYHU\ DQG (PDQFLSDWLRQ 7KH ,QGXVWULDO $UFKDHRORJ\ RI WKH :HVW ,QGLDQ ,VODQG RI 7REDJR 3K' GLVVHUWDWLRQ 8QLYHUVLW\ RI )ORULGD *DLQHVYLOOH )HUJXVRQ /HODQG /RRNLQJ IRU WKH n$IURn LQ &RORQR,QGLDQ 3RWWHU\ LQ $UFKDHRORJLFDO 3HUVSHFWLYHV RQ (WKQLFLW\ LQ $PHULFD $IUR$PHULFDQ DQG $VLDQ $PHULFDQ &XOWXUH +LVWRU\ 6FKX\OHU HGf %D\ZRRG 3XEOLVKLQJ &RPSDQ\)DUPLQJGDOH 1HZ
PAGE 283

*RRGZLQ &RQUDG 0 6XJDU 7LPH DQG (QJOLVKPHQ 3K' GLVVHUWDWLRQ %RVWRQ 8QLYHUVLW\ %RVWRQ %HWW\nV +RSH :LQGPLOO $Q 8QH[SHFWHG 3UREOHP +LVWRULFDO $UFKDHRORJ\ f *UD\ /HZLV &HFLO >@ +LVWRU\ RI $JULFXOWXUH LQ WKH 6RXWKHUQ 8QLWHG 6WDWHV WR 3HWHU 6PLWK*ORXFHVWHU 0DVVDFKXVVHWWV *UHHQ :LOOLDP $ %ULWLVK 6ODYH (PDQFLSDWLRQ 7KH 6XJDU &RORQLHV DQG WKH *UHDW ([SHULPHQW &ODUHQGRQ 3UHVV2[IRUG +DOO 'RXJODV )UHH -DPDLFD $Q (FRQRPLF +LVWRU\
PAGE 284

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
PAGE 285

/LFKWYHOG /RX &UXVRHnV 2QO\ ,VOH ,PDJLQDWLRQ 6XSSRUWHG EY )DFWV 7REDJR %UDQFK 7ULQLGDG DQG 7REDJR 6RFLHW\ IRU WKH 3UHYHQWLRQ RI &UXHOW\ WR $QLPDOV6FDUERURXJK 7REDJR 0DF)DUODQH 6X]DQQH 7KH (WKQRDUFKDHRORJ\ RI D 6ODYH &RPPXQLW\ 7KH &RXSHU 3ODQWDWLRQ 6LWH 0$ 7KHVLV 'HSDUWPHQW RI $QWKURSRORJ\ 8QLYHUVLW\ RI )ORULGD *DLQHVYLOOH 0DUVKDOO :RRGYLOOH 3URYLVLRQ *URXQG DQG 3ODQWDWLRQ /DERXU LQ )RXU :LQGZDUG ,VODQGV &RPSHWLWLRQ IRU 5HVRXUFHV GXULQJ 6ODYHU\ LQ 7KH 6ODYHVnV (FRQRP\ ,QGHSHQGHQW 3URGXFWLRQ EY 6ODYHV LQ WKH $PHULFDV ,UD %HUOLQ DQG 3KLOOLS 0RUJDQ HGVf )UDQN &DVV/RQGRQ 3S 0F.HH /DUU\ 7KH ,GHDOV DQG 5HDOLWLHV %HKLQG WKH 'HVLJQ DQG 8VH RI WK &HQWXU\ 9LUJLQLD 6ODYH &DELQVf LQ 7KH $UW DQG 0YVWHUY RI +LVWRULFDO $UFKDHRORJ\ (VVD\V LQ +RQRU RI -DPHV 'HHW] $QQH (OL]DEHWK
PAGE 286

0RUHQR )UDJLQDOV 0DQXHO 7KH 6XTDUPLOO 7KH 6RFLRHFRQRPLF &RPSOH[ RI 6XJDU LQ &XED 0RQWKO\ 5HYLHZ 3UHVV1HZ
PAGE 287

2UVHU &KDUOHV ( -U DQG $QQHWWH 0 1HNROD 3ODQWDWLRQ 6HWWOHPHQW IURP 6ODYHU\ WR 7HQDQF\ $Q ([DPSOH IURP D 3LHGPRQW 3ODQWDWLRQ LQ 6RXWK &DUROLQD LQ 7KH $UFKDHRORJ\ RI 6ODYHU\ DQG 3ODQWDWLRQ /LIH 7KHUHVD $ 6LQJOHWRQ HGf $FDGHPLF 3UHVV2UODQGR )ORULGD 3S 2WWOH\ &DUOWRQ 5 7KH &RPSOHWH +LVWRU\ RI WKH ,VODQG RI 7REDDR LQ WKH :HVW ,QGLHV *XDUGLDQ &RPPHUFLDO 3ULQWHU\3RUW RI 6SDLQ 7ULQLGDG /HJHQGV 7UXH 6WRULHV DQG 2OG 6DYLQJV IURP 7ULQLGDG DQG 7REDJR &ROOHJH 3UHVVc7ULQLGDG 7KH 6WRU\ RI 7REDJR 5RELQVRQ &UXVRHnV ,VODQG LQ WKH &DULEEHDQ /RQJPDQ &DULEEHDQc7ULQLGDG 2WWR -RKQ 6RORPRQ 6WDWXV 'LIIHUHQFHV DQG WKH $UFKDHRORJLFDO 5HFRUG $ &RPSDULVRQ RI 3ODQWHU 2YHUVHHU DQG 6ODYH 6LWHV IURP &DQQRQnV 3RLQW 3ODQWDWLRQ f 6W 6LPRQV ,VODQG *HRUJLD 3K GLVVHUWDWLRQ 'HSDUWPHQW RI $QWKURSRORJ\ 8QLYHUVLW\ RI )ORULGD $UWLIDFWV DQG 6WDWXV 'LIIHUHQFHVf§$ &RPSDULVRQ RI &HUDPLFV IURP 3ODQWHU 2YHUVHHU DQG 6ODYH 6LWHV RQ DQ $QWHEHOOXP 3ODQWDWLRQ LQ 5HVHDUFK 6WUDWHJLHV LQ +LVWRULFDO $UFKDHRORJ\ 6WDQOH\ 6RXWK HGf $FDGHPLF 3UHVV1HZ
PAGE 288

3HWHUVHQ -DPHV % DQG 'DYLG 5 :DWWHUV $IUR0RQWVHUUDWLDQ &HUDPLFV IURP WKH +DUQH\ 6LWH &HPHWHU\ 0RQWVHUUDW :HVW ,QGLHV $QQDOV RI WKH &DUQHJLH 0XVHXP f 3HWHUVRQ +DUROG / 7KH %RRN RI WKH &RQWLQHQWDO 6ROGLHU 6WDFNSROH+DUULVEXUJ 3HQQV\OYDQLD 3KLOOLSV 'DYLG QG 0DJGDOHQD 7KH 6WRU\ RI 7REDJR 8QSXEOLVKHG PV LQ SRVVHVVLRQ RI WKH DXWKRU 3URVSHFW (VWDWH 7REDJR 3XOVLSKHU /\GLD 0LKHOLF +HUH :KHUH WKH 2OG 7LPH 3HRSOH %H 5HFRQVWUXFWLQJ WKH /DQGVFDSHV RI WKH 6ODYHU\ DQG 3RVWVODYHU\ (UD LQ 0RQWVHUUDW :HVW ,QGLHV 3DSHU SUHVHQWHG DW 7KH /HVVHU $QWLOOHV LQ WKH $JH RI (XURSHDQ ([SDQVLRQ +DPLOWRQ &ROOHJH &OLQWRQ 1HZ
PAGE 289

5RXW /HVOLH % -U 7KH $IULFDQ ([SHULHQFH LQ 6SDQLVK $PHULFD WR WKH 3UHVHQW 'D\ &DPEULGJH 8QLYHUVLW\ 3UHVV1HZ
PAGE 290

6SUDJXH 5RGHULFN *ODVV 7UDGH %HDGV $ 3URJUHVV 5HSRUW +LVWRULFDO $UFKDHRORJ\ f 6WDQIRUGnV *HRJUDSKLFDO (VWDEOLVKPHQW 7REDJR 6WDQIRUGnV *HRJUDSKLFDO (VWDEOLVKPHQW /RQGRQ 6WLQH /LQGD )UDQFH DQG 0HODQLH &DEDN 7KH &RORU %OXH 6\PERO DQG 0\WK LQ 6RXWKHDVWHUQ $IULFDQ$PHULFDQ $UFKDHRORJ\ 3DSHU SUHVHQWHG DW WKH $QQXDO 0HHWLQJV RI WKH $PHULFDQ $QWKURSRORJLFDO $VVRFLDWLRQ $WODQWD *$ 1RYHPEHU 'HFHPEHU 7DQQHKLOO ,YDQ 5D\ +XUULFDQHV 7KHLU 1DWXUH DQG +LVWRU\ 3DUWLFXODUO\ 7KRVH RI WKH :HVW ,QGLHV DQG WKH 6RXWKHUQ &RDVWV RI WKH 8QLWHG 6WDWHV 3ULQFHWRQ 8QLYHUVLW\ 3UHVV3ULQFHWRQ 1HZ -HUVH\ 7KRPSVRQ (GJDU 7 7KH 3ODQWDWLRQf§$ :RUOGZLGH ,QVWLWXWLRQ LQ 3ODQWDWLRQV $URXQG WKH :RUOG 3URFHHGLQJV RI WKH )LUVW :RUOG 3ODQWDWLRQ &RQIHUHQFH 6XH (DNLQ DQG -RKQ 7DUYHU HGVf /RXLVLDQD 6WDWH 8QLYHUVLW\ $JULFXOWXUDO &HQWHU%DWRQ 5RXJH 3S 7ULQLGDG DQG 7REDJR /DQGV DQG 6XUYH\V 'HSDUWPHQW 7REDJR 6HULHV 7ULQLGDG DQG 7REDJR /DQGV DQG 6XUYH\V 'HSDUWPHQW 3RUW RI 6SDLQ 7ULQLGDG 9ODFK -RKQ 0LFKDHO %DFN RI WKH %LJ +RXVH 7KH $UFKLWHFWXUH RI 3ODQWDWLRQ 6ODYHU\ 8QLYHUVLW\ RI 1RUWK &DUROLQD 3UHVV&KDSHO +LOO :DGJH DQG +XGVRQ 1HRWHFWRQLFV RI 6RXWKHUQ 7REDJR LQ 7UDQVDFWLRQV RI WKH )LUVW *HRORJLFDO &RQIHUHQFH RI WKH *HRORJLFDO 6RFLHW\ RI 7ULQLGDG DQG 7REDJR 5RGULJXHV HGf *HRORJLFDO 6RFLHW\ RI 7ULQLGDG DQG 7REDJR3RUW RI 6SDLQ 7ULQLGDG 3S :DGJH DQG 5 0DF'RQDOG &UHWDFHRXV 7KROHLWHV RI WKH 1RUWKHUQ &RQWLQHQWDO 0DUJLQ RI 6RXWK $PHULFD 7KH 6DQ 6RXFL )RUPDWLRQ RI 7ULQLGDG -RXUQDO RI WKH *HRORJLFDO 6RFLHW\ RI /RQGRQ

PAGE 291

:DJOH\ &KDUOHV $Q ,QWURGXFWLRQ WR %UD]LO &ROXPELD 8QLYHUVLW\ 3UHVV1HZ
PAGE 292

D $Q +LVWRULFDO 6WDWLVWLFDO DQG 'HVFULSWLYH $FFRXQW RI WKH ,VODQG RI 7REDJR 0LFURILOP FRS\ RQ ILOH 8QLYHUVLW\ RI WKH :HVW ,QGLHV /LEUDU\ 6W $XJXVWLQH 7ULQLGDG 2ULJLQDO PV RQ ILOH :LQGVRU /LEUDU\ :LQGVRU &DVWOH /RQGRQ E $Q (VVD\ RQ WKH &RPPHUFLDO DQG 3ROLWLFDO ,PSRUWDQFH RI WKH ,VODQG RI 7REDJR 2ULJLQDO PV RQ ILOH 8QLYHUVLW\ RI WKH :HVW ,QGLHV /LEUDU\ 6W $XJXVWLQH 7ULQLGDG F $Q +LVWRULFDO 6WDWLVWLFDO DQG 'HVFULSWLYH $FFRXQW RI WKH ,VODQG RI 7REDJR 2ULJLQDO PV RQ ILOH 8QLYHUVLW\ RI WKH :HVW ,QGLHV /LEUDU\ 6W $XJXVWLQH 7ULQLGDG

PAGE 293

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nV OHYHO :RUNLQJ ZLWK 'U 0RVHOH\ 0U &OHPHQW EHJDQ WR ORRN DW DUFKDHRORJLFDO GDWD IURP D UHJLRQDO SHUVSHFWLYH +LV PDVWHUnV WKHVLV FRPSOHWHG LQ H[DPLQHV WKH HIIHFW

PAGE 294

RI JUDGXDO WHFWRQLF XSOLIW DQG SHULRGLF (O 1LRV RQ D VSULQJIHG LUULJDWLRQ V\VWHP LQ FRDVWDO 3HUX ,Q DGGLWLRQ WR KLV DFDGHPLF UHVHDUFK LQ 3HUX DQG WKH &DULEEHDQ 0U &OHPHQW KDV XQGHUWDNHQ ILHOGZRUN RQ D FRQWUDFWXDO EDVLV LQ WKH 6RXWKHDVW DQG 1HZ (QJODQG +H LV FXUUHQWO\ D SULQFLSDO LQYHVWLJDWRU ZLWK WKH 6RXWK &DUROLQD ,QVWLWXWH RI $UFKDHRORJ\ DQG $QWKURSRORJ\ &XOWXUDO 5HVRXUFH &RQVXOWLQJ 'LYLVLRQ

PAGE 295

, FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKH GHTUHH RI 'RFWRX RI 3KLORVRM 3HWHI 3n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

PAGE 296

&O RXW &R


xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EW4M47H3N_I7BJZW INGEST_TIME 2017-07-13T15:21:42Z PACKAGE AA00003595_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES