Citation
The invisible Indians

Material Information

Title:
The invisible Indians a history and analysis of the relations of the Cocamilla Indians of Loreto, Peru, to the state
Added title page title:
Cocamilla Indians of Loreto, Peru, to the state, A history and analysis of the relations of the
Creator:
Stocks, Anthony Wayne, 1939-
Publication Date:
Language:
English
Physical Description:
xxii, 366 leaves : ill. ; 28 cm.

Subjects

Subjects / Keywords:
Barrios ( jstor )
Cassava ( jstor )
Ethnic groups ( jstor )
Human geography ( jstor )
Lowlands ( jstor )
Priests ( jstor )
Society of Jesus ( jstor )
Tropical forests ( jstor )
Tropical regions ( jstor )
Women ( jstor )
Acculturation -- Case studies ( lcsh )
Indians of South America -- Peru -- Loreto ( lcsh )
Indians of South America -- Social conditions -- Peru ( lcsh )
Indios de Perú -- Relaciones con el gobierno
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis--University of Florida.
Bibliography:
Includes bibliographical references (leaves 353-365).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Anthony Wayne Stocks.

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:
000081981 ( ALEPH )
AAJ7307 ( NOTIS )
05112670 ( OCLC )
AA00004914_00001 ( sobekcm )

Downloads

This item has the following downloads:


Full Text


THE INVISIBLE INDIANS: A HISTORY AND ANALYSIS
OF THE RELATIONS OF THE COCAMILLA INDIANS
OF LORETO, PERU, TO THE STATE
By
ANTHONY WAYNE STOCKS
A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF THE
UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY
UNIVERSITY OF FLORIDA


This work is dedicated to the people of
Achual Tipishca who give so freely and
who have received so little.


)


PREFACE
The title of this work was chosen in order to drama
tize the rather unique position of large numbers of native
American Indians in eastern Peru. While a considerable
amount of attention has been given to the problems of
"tribal" Indians, there exists a large class of "detriba-
lized" Indians who are generally ignored. It is usually
thought in Peru that such Indians have integrated into the
white-mestizo culture and that they have disappeared
biologically and as ethnic groups. Were this so, we would
be presented with a selvatic society in which most rural
members would be equivalent to the Brazilian caboclo. In
fact, the term ribereo is generally used in Peru in exactly
the same sense that caboclo is used in Brazil, to describe
the rural frontiersmen of the tropical forest region who
bear a culture which is much closer to European patterns
than to autochthonous native patterns. Furthermore, the
use of the term ribereo in Peru implies that most rural
populations which are not tribal Indians do in fact fit
into this category and that they form a homogeneous group
culturally and socially.
IV


Unfortunately for this view, social reality in eastern
Peru does not match the Brazilian model. While there is
certainly a ribereo stratum which is equivalent to the
Brazilian caboclo (I would call them white-mestizo rural
frontiersmen), there is also a stratum called the cholada
which does not, from all accounts, exist in Brazil. The
cholada is composed of the detribalized, acculturated, but
unassimilated Indians who have made a wide range of adjus t-
ments to Peruvian society.
The Cocamilla are members of the cholada. They live in
communities which might be described as native enclaves in
the midst of a world dominated by white-mestizo culture.
They are acculturated to many of the superficial aspects of
white-mestizo existence, appearances which are deceptive.
They retain many of the social forms and practices of
their historical past. They retain them not through some
vague sense of tradition but because they find them useful.
They have special needs and problems which derive from
their position at the bottom of the Peruvian social system
as it is encountered in the tropical forest regions. The
only social status lower than the cholo in eastern Peru
is that of the tribal Indian, and it cannot truly be said
that the tribal Indian is a member of Peruvian society.


The needs of the Cocamilla and the rest of the cholada
are not recognized. It is much more convenient to pretend
that they have disappeared, integrated, assimilated,
"mestizoized. This pretense is facilitated by the degree
of acculturation of the cholada to white-mestizo patterns
which renders them so similar in outward appearance to the
white-mestizo ribereos that they are effectively "invisible.
Hence, the title of the present work. By examining the
history and relations with the state society of what is now
Peru of one representative group of the selvatic cholada,
it is hoped that sensitivity toward the plight of other
members of this social class will be heightened. It is not
a small class in numbers. The Cocamilla and their closely
related cousins, the Cocana, have a population which ap
proaches 25,000 (Stocks, 1977). If all of the cholada
were counted their population would easily reach 100,000,
a significant percentage (7%) of Lcreto's population of
close to one and a half million persons.
Since the subject will not arise again until the last
chapter of this dissertation, I would like to say something
about the theoretical orientation which is implicit in
much of the organization and understanding of the material
contained in this work. I have been for some time and
vi


continue to be influenced by the perspective in American
anthropology called "cultural materialism" by some (cf.
Harris, 1968, for a thorough treatment of this strategy
for organizing our thoughts about cultural matters).
The debt of cultural materialism to the "dialectical ma
terialism" of Marx has been generally recognized. I
consider myself to be an economic and ecological anthropolo
gist. To me, the subjects are entwined to a degree which
makes their separation, even for heuristic purposes,
impractical. Cultural materialism as a research strategy
suggests, among other things, that the determinants of
cultural patterns are to be found in the objective rela
tions which a given society or culture has with its environ
ment, both physical and socio-political. Thus, in this
work I have consistently searched out the meaning and the
implications of the relations between the Cocamilla and
the state in the economic relations between them. It is my
belief that these relations are the major determinants
for relations in the socio-political sphere and in the
kinds of ideas and opinions expressed by the Cocamilla and
the members of the Peruvian society with whom they have
related in the past and continue to be related. When the
Cocamilla are considered alone, it is their productive sys
tem which receives major emphasis in this work.
vn


I am not unmindful of the debt which cultural
materialism owes to earlier thinkers in the social and
natural sciences. Darwinian evolutionary theory is basic.
The work of Leslie White, especially in The Science of
Culture (1949), in stating the basic framework of the
study of culture has influenced me greatly. His "layercake"
model of society devised from earlier materialists including
Marx, in which the technological and economic base sup
ports layers" of social organization and ideology is
useful and is implicit in this work. The work of Robert
Murphy in The Dialectics of Social Life (1971) has greatly
clarified for me the relations between the ideological
"layer" and the "layer" of social interaction. My use of
the term "praxis" in the sense of the social and economic
interactions of humans prior to their conceptions of those
interactions follows Murphy. Marshall Sahlins' work,
Stone Age Economics (1972) has helped me greatly in
organizing my thoughts about the domestic mode of produc
tion, an economic organization which is fundamental to
many groups of South American tropical forest Indians,
the Cocamilla among them. Since I use the terms "mode of
production" and "relations of production" in this work
several times, it is just that the debt to Marxian social
viii


Science be made more explicit in this sense. Marx's
conception of mode of production includes the fundamental
relations between people engendered by a determined way
of producing the necessities of life, and considers the
whole implied by the complex of the productive system and
the relations and cultural patterns necessary to carrying
it on. The mode of production, in short, is a socio
cultural and economic system and interacts with other
systems of the same conceptual order (cf. Godelier, 1977:
15-69). Thus, one may speak of the conflicts between the
Cocamilla mode of production and a capitalist mode of
production and be understood to mean that the conflicts
are on several levels, economic, social, and cultural or
ideological. Marx's work Pre-Capitalist Economic Forma
tions (1975) has been influential in making me think about
such matters with regard to native Indian societies.
I would like to thank Dr. Charles Wagley for the
material aid, intellectual guidance, and moral encourage
ment which made it possible to complete this work. It is
difficult to imagine having completed it without him. The
warm support he provides for his students is appreciated
more than he knows. Special thanks also go to the
members of my academic committee, Drs. Paul Doughty,
IX


Maxine Margolis, Anthony Oliver-Smith, and Glaucio Soares
who read and criticized earlier versions of the disserta
tion. Needless to say, final responsibility for content
and interpretation lies with me. Among my Peruvian friends
I would like to thank Alejandro Camino for his great aid
in securing institutional affiliation in Peru and all of
t *
the staff of the Centro Amaznico de Antropologa y
/ /
Aplicacin Practica (CAAAP) in Lima and Iquitos. Alberto
Chirif of SINAMOS first guided me toward the Cocama and
Cocamilla. Norma Faust of the Summer Institute of
Linguistics deserves special thanks for her great help in
making possible my first orientation among the Cocama of
the Ucayali River. My friends in Lagunas know who they
are and they also know that I value their help and their
friendship. P. Fr. Julian Heras O.F.M. was of great help
in guiding my reading in the library at Santa Rosa de
Ocopa. A special debt is owed to Juan de la Cruz Murayari
who shared his knowledge of Cocamilla history unselfishly.
My wife, Kathleen Butkus Stocks, worked as hard during the
field portion of the study as I did. Her contribution is
beyond calculation. Finally, although they never quite
understood precisely why "Don Antonio" was among them, the
people of Achual Tipishca accepted me and my family.
x


supported us, fed us, entertained us, socialized my
infant daughter Gabriela, and made us one of them in a
way which is slightly incredible to me yet. To them I
owe the most, and it is to them that this work is dedicated
Research for the dissertation was carried out through
financial help from several sources. The Tropical South
American Research Program under Dr. Charles Wagley at the
University of Florida paid for a field trip of four months
in 1975 during which time I selected a community and
began to learn to deal with the tropical forest environment
The major portion of the field work, a stay of 19 months
in 1976-1977, was supported by the Social Science Research
Council in the form of a grant for doctoral dissertation
research, by the Department of Health, Education, and
Welfare in the form of a Fulbright-Hayes grant for
doctoral dissertation research #13.441AH60020, and by the
National Science Foundation in the form of a grant for
improvement of doctoral dissertation research #BNS76-09554.
The Social Science Research Council also provided funds
for a six month extension of fieldwork and a six month
write-up period after the field work had ended, a grant
which has saved me much worry and fatigue. My thanks
to all of these institutions and their dedicated staffs.
xi


TABLE OF CONTENTS
Page
PREFACE iv
LIST OF TABLES xvi
LIST OF FIGURES xviii
LIST OF MAPS xix
ABSTRACT xx
CHAPTER
I FIELDWORK AMONG THE COCAMILLA 1
Notes 16
II WHO ARE THE NATIVES? 17
Toward a New Model of Lowlands
Native Societies 34
The Problem of Ethnicity 43
III THE PHYSICAL ENVIRONMENT OF THE
COCAMILLA 54
Proteins and Populations 59
Land and Water Features of
the River Valley 62
Land and Water Features of
the Upland Plain 70
The Larger Region 73
IV THE PREHISTORY AND ABORIGINAL CULTURE
OF THE COCAMA AND COCAMILLA 7 7
xii


TABLE OF CONTENTS (Continued)
Page
The Aboriginal Subsistence Economy . 82
Social Organization 85
Adornment 92
Ideology and Custom 93
Notes 98
V CONTACTTHE FIRST FORTY YEARS
1640-1680 99
Summary 135
Notes 142
VI THE COCAMILLA AND COLONIAL MISSION
LIFE 1680-1820 143
The Departure of the Jesuits 158
Military Rule in Mainas 160
Summary 167
VII THE COCAMILLA AND THE REPUBLIC:
IDEAL AND REALITY 169
The Native Response to Independence. 171
Competition for Indian Labor 176
Haciendas Appear on the Lower
Huallaga 180
The Rubber Boom 187
The Barbasco Years 195
Recent Times 201
Notes 207
VIII THE RURAL COCAMILLA ECONOMY TODAY:
CLASHES WITH THE STATE 208
Agriculture and Land Use 210
The Tipishca Economy in
Qualitative Terms 218
The Position of the Agrarian Bank. . 225
The Agrarian Band and Rural
Impoverishment
xiii
234


TABLE OF CONTENTS (Continued)
Page
Land and Water Rights 237
Fishing Rights or Starvation 241
Present Nutritional Levels 243
Summary 243
Notes 248
IX SOCIAL ORGANIZATION: THE EGALITARIAN
COMMUNITY AND THE AUTHORITARIAN STATE . 249
The Nature of the Egalitarian
CommunityCocamilla Social
Organization 253
The Community and the State 264
The School as a Model of the Social
Environment of Achual Tipishca. . 270
Summary 276
X COCAMILLA IDENTITY PATTERNS: THE
NATIVE AND THE STATE 278
Identity as Peruvians 279
The Class of the Apellido Humilde. . 281
The Cocamilla as Cocamilla 284
Community Identification 287
Shamanism and Cocamilla Identity . 288
The Fiesta System 292
Other Boundary-Maintaining Customs . 295
Summary 298
XI ANALYSIS AND CONCLUSIONS 300
Today's Cocamilla 305
The Future of the Cocamilla 308
APPENDICES
APPENDIX IGLOSSARY OF FOREIGN TERMS 315
APPENDIX II--POPULATION CHARACTERISTICS
ACHUAL TIPISHCA 331
APPENDIX IIILIST IN SPANISH OF FOODS
REGULARLY CONSUMED BY THE COCAMILLA ... 334
xiv


TABLE OF CONTENTS (Continued)
Page
APPENDIX IVCOCAMILLA KINSHIP TERMS 338
APPENDIX VHISTORIC CATHOLIC FESTIVAL
CYCLE AS PRACTICED BY THE COCAMILLA
IN ACHUAL TIPISHCA DURING THE 19TH
AND 20TH CENTURIES 343
BIBLIOGRAPHY 3 53
BIOGRAPHICAL SKETCH 366
xv


LIST OF TABLES
Table Page
3.1 Climatological Data from Yurimaguas
Experimental Station 1976 57
5.1 Cocamilla Population Decline 1638-1681. . 138
5.2 Cocama Population Decline 1559-1681 .... 139
5.3 Major Epidemics in Mainas Missions
1638-1681 140
6.1 Population of Lagunas from 1670 to 1768 . 157
6.2 Lagunas Political Organization 1790 .... 163
7.1 Populations in the Lower Huallaga
Region 1790-1864 174
7.2 Exports of Some Lowland Products
from Loreto 1862-1870 185
7.3 Tipishca Populations as Shown in
Various Censuses 200
8.1 Land Use in Achual Tipishca in 1976
and 1977 212
8.2 Average Time Per Day Spent on Various
Subsistence Activities by Age and Sex . 216
8.3 Sample Planting Schedule for Floodplain
Agriculture 217
8.4 Expenses of Growing and Marketing Rice
in Achual Tipishca 229
8.5 Time Inputs Per Adult Male Equivalent
(AME) Per Year Per Hectare on Manioc,
Plantains, and Jute 221
xvi


LIST OF TABLES (Continued)
Table Page
8.6 Expenses of Growing and Marketing
Jute in Achual Tipishca 232
8.7 Bank Debt in Achual Tipishca Over a
Three Year Period 235
8.8 Degree of Community Involvement with
Agrarian Bank vs. Value of Material
Prestige Items in Huallaga Communities. . 236
8.9 Results of Three Dietary Studies in
Achual Tipishca at Varying Points in
the Flood Cycle 244
8.10Proportions of Food by Weight Supplied
by Various Categories of Activity 245
10.1 Partial Reconstruction of the Annual
Calendar 293
xvii


LIST OF FIGURES
Figure Page
3.1 Graph of Twenty-One Year Average
Rainfall in Yurimaguas 58
8.1 Subsistence Activities of Adult Males
on a Daily Basis 215
8.2 Plantain Prices Per Stalk in Lagunas
1976-1977 in Soles 219
9.1 Groups of Patrilineal Kinsmen in
Achual Tipishca 255
9.2 Cocamilla Use of Spanish Kinship Terms . 258
9.3 Cocamilla Use of Primo-Tio-Sobrino-
Abuelo Terms 258
9.4 Typical Marriage Exchange Over Two
Generations 261
9.5 Typical Cross-Cousin Inter-Generational
Marriage 261
xviii


LIST OF MAPS
Map Page
1.1 Showing Modern Day Distribution of
Tupian Indians in Peru ii
3.1 Showing General Region of Study with
Locations of Some Native Groups at
Contact 76
5.1 Showing the Limits of the Mainas
Missions 100
5.2 Showing the Early Mainas Missions
Discussed in this Chapter 101
7.1 Showing the Location of Prominent Towns
in the Lower Huallaga Region in the 19th
and 20th Centuries 170
8.1 Showing Part of the Lower Huallaga River
Valley and the Location of the Study
Community, Achual Tipishca 211
xix


Abstract of Dissertation Presented to the Graduate Council
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy
THE INVISIBLE INDIANS: A HISTORY AND ANALYSIS
OF THE RELATIONS OF THE COCAMILLA INDIANS
OF LRETO, PERU TO THE STATE
By
Anthony Wayne Stocks
December, 1978
Chairman; Charles Wagley
Major Department: Anthropology
This dissertation addresses itself to the problems of
the Cocamilla Indians of Loreto, Peru,and other similar
groups of tropical forest Indians of Peru who are acculturated
to white-mestizo patterns, but who are not assimilated or
well-integrated into Peruvian society. The Cocamilla form,
in effect, is a native "enclave" which is part of the rural
class structure of eastern Peru. Cocamilla ethnohistorv pro
vides the background for understanding how this situation
came about as a result of historical processes. It is
asserted with supporting evidence that the Cocamilla and
other Peruvian native Indians in similar structural posi
tions actually form a "native" social class which is dis
tinguishable both from the less-acculturated tribal Indians
and from the poor rural white-mestizos who form the other
component of Loreto rural society. This social class has
xx


special problems because of the discordance produced by
the thorough insertion of native ethnic groups such as the
Cocamilla into the regional variants of Peruvian national
class structure, an insertion which demands of them patterns
of behavior which are alien to them. The Cocamilla, a group
of about 5,000 7,000 people, have survived nearly 340
years of contact with western society by working out an
arrangement whereby they supplied the developing Peruvian
society with labor as canoemen and the products of the lakes
and rivers of the Peruvian varzea, using techniques which
have only recently been modified. Since their own lands,
until the late 19th century, were essentially valueless to
the Peruvian society in terms of agriculture and lumber,
they were allowed to fill this economic niche without being
forced to make drastic modifications in the life-style
generated by their domestic subsistence-oriented mode of
production. This situation has changed in the 20th century
and Cocamilla institutions are undergoing rapid and radical
changes today.
Based on an analysis of the conflicts between the
Cocamilla native communities (defined by the qualities of
being egalitarian, non-intrusive, and essentially kinship-
based communities) and the bureaucratic, hierarchical, and
xxi


highly formal institutions of the state with which they
are in constant contact, recommendations are made for
recognizing the Cocamilla's right under Peruvian law as
native Indians. These rights must include rights to both
land and water resources in order to permit them to adjust
to the developing Loreto society on terms which include
the possibility of cultural and economic survival as an
ethnic group.
XXII


CHAPTER I
FIELDWORK AMONG THE COCAMILLA
t
The Cocamilla are a group of about 5,000 native Ameri
can Indians living in three major and a dozen minor com
munities who speak a language called Cocama, a member of
the Tupi linguistic family. They are generally considered
to be a sub-group of the Cocama. The Cocama number about
20,000 people and inhabit the lower Ucayali River flood-
plain in eastern Peru from about latitude 6101 South to
the river's mouth. The Cocamilla inhabit the lower
Huallaga floodplain from about latitude 528' South to
the mouth. These were the historical limits of their
territory, but both groups have expanded considerably in
recent times. Tupian Indians may now be found along parts
of the floodplain of the Maraen, Upper Amazon, Nanay,
Pastaza, and lov/er Napo rivers, to name but a few.
Neither group has a long history in Peru. Archaeological
evidence indicates that the Peruvian Tupians, including
the Cocamilla and Cocama, probably arrived as part of a
historical migration of Tupian Indians not more than two
1


2
or three hundred years before the conquest. They were part
of an expanding population and were reported to have been
extremely bellicose in many of the early historical sources.
I first became interested in the Cocamilla Indians as
I become interested in most things, through slight ex
perience with them. In 1973 I was traveling down the
Ucayali River in eastern Peru on a decrepit wooden passen
ger boat. I had been studying in the Andes and wanted to
see more of the country. Part of my plan was to see some
of the eastern lowlands.
My first view of the eastern flanks of the Andes where
the tropical forest begins as a cloud forest above Tingo
Maria was breathtaking, even at 4:00 A.M. in the rain from
a crowded bus. The dry Andean air was suddenly charged
with heat and showerbath humidity. The moon lit up the
thick vegetation on the right of the bus and the impossibly
sheer and deep canyon on the left. We soon became stuck
in the mud while waiting for a landslide to be cleared.
At Pucallpa a couple of days later, my wife and I
found a boat traveling to Iquitos, 1200 kilometers
downstream. The trip was revealing in terms of the river
life and commerce. I was confused at the terms used by
the Cantonese owner and his river pilot to refer to the


3
occasional Indians (mostly Shipibo, Conibo, and, farther
down, Cocama) we saw living along the shores and
paddling canoes. They were all called chamas or cholos^-
by the boatsmen without distinction as to their ethnic
group. Since I had been interested in the so-called
cholos in southern Peru, and since the people called
cholos on the river hardly seemed to be in the same posi
tions as their highlands counterpart, I became interested
in them.
In 1975 I returned to Peru with my wife, having by
then determined to work in the tropical lowlands as my
professional area specialty in anthropology. In the
course of making contacts in the capital, Lima, we visited
the offices of SINAMOS (National Social Mobilization
Support System), the political-organizational arm of the
1968 military junta. There we talked to Alberto Chirif,
the head of the support office for native communities.
His office was in charge of organizing Amazon native
Indians into political and juridical entities called
2
"native^ communities" so that they might receive land
titles, learn to deal with bank loans, receive identity
papers, and in general defend themselves against white-
mestizo traders and patrons. All of this was being done,


4
at least on paper, under law #20653, which, since 1973,
has defined the rights of Amazon ethnic minorities, and
has regulated the use of lands in eastern Peru under the
700 meter contour, which was the lower limit of the
Agrarian Reform.
Mr. Chirif indicated an interest in the Cocama Indians
He pointed out to me that on his maps of the locations of
240 native villages of tropical forest Indians there was
not a single Cocama or Cocamilla village shown. He said
they had been able to organize no Cocama native communities
and in fact his office did not know which villages along
the Ucayali, Amazon, Maranon, and Huallaga rivers might be
Cocama or Cocamilla. This was true despite the fact that
the Cocama/Cocamilla ethnic groups, with approximately
20,000 population comprise one of the largest native
Indian groups in eastern Peru, and lie along the flood-
plains of the most traveled rivers in the country.
The puzzle, of course, had a simple solution. The
Cocama and Cocamilla were believed to have lost their
"tribal" identity and to have largely merged with and
integrated into that large sector of riverbank frontiers
men frequently called ribereos in Peru and caboclos in
Brazil. Although no one I talked to in Lima during the


5
month I stayed there actually said it, there seemed to be
an unstated assumption that if lowland tropical forest
Indians were no longer "tribal," then they were no longer
Indians at all.
This unvoiced assumption actually became voiced later
in the summer in the heart of historic Cocama country,
Requena, where the local head of SINAMOS, the man who,
along with his other duties, was in charge of organizing
the native communities, told me that they had not organized
any Cocama under law #20653 because he did not consider
them to be natives. "They are now mostly crossed with
the mestizos," he said. He saw his job with regard to
"real" natives as helping them to "revalidate their cul
tural patterns." This was taken to mean getting them to
"preserve their dances and folklore." The Cocama and
Cocamilla had no colorful dances and no one had asked them
about their folklore since 1935. Their villages looked
like the frontiersmen's villages, so much so that the
Requena office was not sure where they could find a Cocama
village. The Cocama, they said, "were too mixed with the
rural agriculturalists and urban slum people to identify."
The only reason I failed to become persuaded that the
Cocama and Cocamilla had disappeared as ethnic groups was


6
that I was traveling in a small boat with a Cocama family
and they unhesitatingly identified certain communities as
places where old people spoke the language, the dialecto.
Furthermore, the white-mestizos on the Ucayali, the
upper Amazon, lower Maranon, and lower Huallaga rivers,
also knew where idicmeros were to be found and were quite
willing to point out their communities.
On the advice of Norma Faust of the Summer Institute
of Linguistics, the Cocama language specialist, I journeyed
to Lagunas on the lower Huallaga River to see the Cocamilla.
They were supposed to be more conservative of language and
custom than the Cocama. It seemed to be true. Three large
and several small communities of Cocamilla were identified.
Most of the children understood the language, even if they
did not speak it.
I saw no reason why the communities of Cocamilla on
the Huallaga River should not have titles for their land
and protection under the law as native Indians. They
were stable communities in a geographic sense. They
expressed an interest in securing titles to communal land.
The only drawback was that they had never been visited
by a government organizer, and they had no idea of the
law or of their rights. I decided to study the question


7
of what sort of lands might be desirable for them to
secure title to, a study which implied a study of their
subsistence patterns and needs.
I returned to Peru in July of 1976 for the field por
tion of the study. By then I was familiar enough with the
Cocamilla so that I naively assumed that they were not
socially "invisible" to the authorities, even if the
more dispersed Cocama seemed to be. I spent the next
nineteen months disabusing myself of that idea as I tried
to convince the officials in the closest SINAMOS office
in Yurimaguas to come and at least talk to the Cocamilla
about their rights as native Indians. The office responded
that the Cocamilla were "campesinos" (peasants), and thus
could only be organized on an equal basis with the white-
mestizo rural agriculturalists. SINAMOS promoters in
Yurimaguas were busy organizing Chayahuita Indians, among
other groups, into native communities. The Chayahuita at
least looked like the popular conception of Indians, the
men with pudding-bowl haircuts, and the women in crude
black homespun skirts and short blouses with bracelets
and beads. The last Cocamilla who wore such clothes had
died two years before. Yet in phenotypical appearance
the Cocamilla were as Indian as the Chayahuita.


8
As I began to understand something about Cocamilla
social and economic life from living in one of their
villages, I began to see that they were discriminated
against by most, if not all, of their white-mestizo
neighbors. Their history as mission Indians, and later
as peons, had ill-fitted them to be thrust into the
capitalist-extractive or capitalist-agricultural economy
of Loreto as individuals or as communities without some
sort of "head-start." Their historical heritage as
Christian Indians seemed to be strong enough to keep them
distinct as an ethnic group, at least up until the pre
sent, but they lacked the access to political and
economic power which the ribereo white-mestizo frontiers
men had.
As I lived among the Cocamilla I began to see that
they still formed a distinct society in which up to 90%
of them found marriage partners with other Cocamilla. I
watched their customs deprecated by the white-mestizo
teachers, their lakes violated by commercial fishermen,
and their daughters go away to near bondage as servants
in urban centers. In such circumstances others have
spoken of "ethnocide." I wish it ware that simple. But
at times there almost seemed to be an element of malevolant


9
conspiracy in the way the entire Peruvian society in con
tact with them persistently tried to get them to act
like anything but Cocamilla.
The Cocamilla had long-since developed cultural means
of dealing with such pressures from white-mestizo society.
They had become "closed" in the sense that they did not
speak easily to outsiders and the men tried to behave
like the white-mestizos when they were around them. When
their language was mentioned,they shuffled their feet
and laughed nervously.
But in the past 30 years direct domination by mestizos
who formerly lived in their communities and appropriated
their labor, and direct contact with the public school
system had eroded their old cultural models, and had
destroyed the old system of authority developed during
the Jesuit period 300 years before. Cash cropping had
brought them into close relations with the Peruvian econ
omy, not as peons any longer, but as independent small
producers. A "generation gap" had appeared as the
younger members of the community tried to deal with new
developments in their life-plans. The Cocamilla were
no longer "tribal" Indians in any sense of the term, but
neither were they white-mestizos, either as a society or
as a culture.


10
As my hopes faded for seeing them secure titles
for their communal land and their fishing rights protected
in the immediate future, my plans for the kind of work I
would write about them changed. I have always thought that
anthropologists should observe some sort of large-scale
reciprocity with the people who provide the data for their
work. That we who study reciprocity in finely-shaded
detail should ignore such a fundamental seems to me to be
the most gross form of ingratitude. I speak here not of the
difference between so-called "applied" or "action"
anthropology and "theoretical" anthropology, but rather
to the simple dictates of elementary human relations.
The present work thus grew out of experience or praxis,
if you will, with the real conditions of life for the
Cocamilla. It will try to lay bare the historical reasons
for what might be called the Cocamilla "particularity,"
and to show that their specialness has broad ramifications
in their relations with Peruvian national society. It
will argue that the Cocamilla and other native minorities
in a similar socio-economic position deserve special con
sideration. It will be a very different work, in short,
than it started out to be. The ecological and historical
data are made to serve an argument which is politically


11
biased in favor of the Cocamilla. I think it must be that
way if I am to write it at all.
A word about method. There are three axes of data
collection integrated in this work. The first is his
torical, the second ecological, and the third ethnographic.
In terms of history I was interested in the past of
one specific ethnolinguistic group, the Cocamilla. Towards
that end I studied all available documents in the community
in which I lived. In Lagunas I consulted all the docu
ments in the Catholic mission, and in the meagre public
archives available. In Yurimaguas, the provincial capital,
I examined church archives, consulted the public library,
and examined unpublished documents in the files of the
sub-prefecture. I consulted published sources insofar as
they were available to me on interlibrary loans. I col
lected data on the people's own version of their history,
and conducted interviews to cross-check the information
as much as possible. There is at least one general
academic work in English on the conquest of the Peruvian
montana (Werlich, 1968) with an extensive bibliography for
those interested in the macrohistory of the region. The
history I wish to write deals essentially with the Coca
milla experience over the course of more than 330 years


12
of direct domination by the culture-bearers of the Western
World. I wish in this way to arrive at an understanding
of the sociology of eastern Peru through the Cocamilla
experience.
The data on the current Cocamilla economy and ecology,
the subsistence system, and cash cropping, were gathered in
a systematic way. For calculating the use of time by age
and sex I relied on five visits each day for one year to
houses selected at random by non-replacement sampling, at
times also selected at random in 15 minute blocks from
6:00 A.M. until 7:30 P.M. The activities of each house
hold member were recorded and later given a classification
number, the first three digits of which are based on the
Outline of Cultural Materials (Murdock et al., 1971), and
the last two digits based on the activities specific to the
Cocamilla culture. This material was collected specifically
so as to be analyzed by computer. This method was suggested
by Johnson (1974). Over the course of a year over 14,000
observations were accumulated.
More specific data on agriculture, hunting, and fish
ing were collected by the use of three key informants.
Each of these informants was carefully selected as to
reliability and representativity after five months


13
experience in the community. Each was given a watch and
asked to provide daily reports. The information requested
involved the time they spent traveling to their work, the
time worked at each daily activity, the people present,
the location of the work, the tools used, and the weight
in kilograms of the product they brought home. All fish
were to be weighed before cleaning, and all animals were
to be weighed before gutting. These reports also included
the subsistence activities of other household members and
the inputs of non-household members into the fields or
fishing activities of the person filling out the form.
Communal work sessions attended, for example, would include
the names of all persons present. These reports were
obtained daily for a full calendar year and presented a
picture of a domestic mode of production which included
the entire family, not simply data on the activities of
adult males. The reports were carefully analyzed daily
and recorded in large account books, the activities of
each person working in the system being separated. The
data were set up to be processed by computer.
Nutritional data were obtained by sitting in selected
houses for periods of five to seven days weighing every
thing that family members ate. This was as much of a


14
burden on the Cocamilla as it was difficult for us. Since
the families frequently eat from common dishes, we weighed
what went into the pots and took notes on what was indivi
dually consumed. The leftovers were weighed before being
thrown to the chickens, as were the fishbones. These data
were collected in February when the water was rising
toward flood stage, in March at "high water" during the
rainy season, and in August at the dry season "low water"
time. Nutritional data are the most difficult data to
collect since the close cooperation and patience of all
family members is required and I owe a large debt of
gratitude to the Cocamilla families who assisted in this
work.
Ethnographic material was provided by the technique
of participant-observation, which is another way of saying
that my family and I lived with the Cocamilla, worked with
them, danced with them, marketed with them, shared ritual
coparenthood with them, were occasionally laughed at by
them, and never really understood them as well as we
wanted to. We collected geneologies in order to compre
hend their social organization with some sort of time
depth. WTe collected census data and tried to be
systematic about exploring their social world. We took


15
extensive notes on what we saw and heard, and classified
the notes along standard ethnographic categories for
purposes of analysis.
I cannot say that we came to think as the Cocamilla
thinkI have too much respect for the power of one's own
sociocultural system in forming personality and cognitive
categories to believe that we could ever "think" like the
Cocamilla, but we did come to understand some of the
reasons why the Cocamilla behave as they do, and at
times I felt very close to them indeed.


Notes
-'-The use of the terms cholo and cholada will prove
troublesome to some. I am aware that the terms are used
in many different senses in Peru. The literature on
so-called cholos and the process sometimes called
cholification has become fairly abundant. I do not
intend to argue that my usage of the term corresponds to
its usage in the rest of Peru. The people called cholos
in the tropical forest region provide yet another example
of the varied use of the term and I use it here in a
regional sense to refer to acculturated native Indians
who are integrated into the Peruvian national class
structure. In this sense the term probably has more
than regional significance but I leave it to others to
draw that conclusion.
-This terminology provides the framework for the use
of the term "native" in this work. By native, I refer to
members of ethnic groups which are American Indians. This
usage corresponds to the terminology used by government
of Peru in referring to Indian societies in the tropical
forest regions. I consider members of the cholada to be
natives when they form native communities as defined by
the qualities of being essentially egalitarian communities
in which social and economic relations are kinship-based.
When members of the selvatic cholada do not live in such
communities, they may be considered to have advanced far
along the path to assimilation into white-mestizo culture
and society. To be native, then, is less a matter of
biology than of cultural patterns including residence and
social organization.


CHAPTER II
WHO ARE THE NATIVES?
The Peruvian system of stratification,
whether in the colonial, republican, or
contemporary periods, has never made
use of a strictly binary opposition
between Indian and non-Indian. But
neither has it been characterized by
a pluralism of juxtaposed groups--that
is, at once isolated from each other yet
all forming part of the same economic
space and subject to the same legal sys
tem, as, for example, is the case with
the Jews, Italians, and Puerto Ricans of
New York . (Bourricaud, 1975:351).
The above quote illustrates a problem. The problem
arises when statements about the nature of Peruvian society
such as this one are applied to the eastern lowlands of
Peru. The fact is that the history and sociology of the
lowland tropical forest region tend to make attempts at
generalizations about Peru problematic. The long co
existence of many ethnic groups in the lowlands missions,
groups which shared the same "economic space," and yet were
ethnically and socially "isolated from each other" for
nearly two centuries in many cases, serves as an example.
The lowland tropical areas simply do not fit the model
17


18
for highland and coastal Peru. The land tenure system
which heavily influenced the relations between Spanish
and Indians in the highlands of all the Andean countries
did not apply. Probably for the above reasons the lowland
tropical forest region has, until very recently, been
excluded from consideration in discussions of social
stratification in Peru, usually on the basis that it is
"sparsely populated" (Larson and Bergman, 1969:4) if it is
mentioned at all. More frequently it is not mentioned.
Actually, with a population of close to 1,500,000
people the montaa accounts for over 10% of Peru's total
population, hardly a negligible number. It is only the
fact that this population is spread over the 60% of Peru
which is or was covered by various sorts of tropical
forest that allows the region to be dismissed so easily.
If the same number of people were gathered in one place,
their social composition would doubtless arouse more
interest and attention.
But if this region is not to be analyzed with the
rest of Peru, how is it to be thought of? The history of
post-conquest geo-politics in the Amazon basin has meant
that the native populations of the tropical forest regions
of the Andean countries and those of Brazil have had very


19
different histories; the Amazon basin in general cannot
be thought of as a social unit in any sense. Peru, for
example, became a refuge area for at least four large groups
of riverine Tupian Indians between 1549 and 1700 (Bollaert,
1861:2-3; Edmunson, 1922:119-127; Vasquez, 1881). Spanish
military control in what is today lowland Peru determined
considerable cultural divergence in the upper Amazon from
the lower Amazon which was controlled soon after 1500 by
the Portuguese. For the Andean countries of South America
the lowland tropical forest was always a far-off hinterland.
Difficulty of access through the rough topography of the
eastern valleys of the Andes, covered with thick cloud
forest growth, tended to protect the Peruvian native forest
and river Indians from total destruction. On the other
hand, Portuguese slavers were more or less free to wreak
havoc on Brazilian natives by traveling up the broad
Amazon River and its tributaries from Para.
To be sure, the destruction of forest and river Indians
during the years from 1885 to 1912, when world demand for
rubber was dependent on the dispersed wild resources of
the Amazon Basin, took place in both the Peruvian and
Brazilian Amazon. Labor-intensive extraction methods
were frequently accompanied by the slavery and starvation


20
of captive Indian populations (Valcarcel, 1915; Singleton-
Gates, 1959). But by this time Brazil had few easily
accessible native Indians left and it is symptomatic of
the relatively more numerous Peruvian Indian population
that most of the infamous "correrias" (Indian roundups)
of this period took place in Peru. Today the results of
the very different history of the Peruvian Amazon and
that of Brazil is starkly suggested by simply population
figures. Brazil has approximately 120,000 native Indians
in the entire country (Supysua, 1974) while Peru has
approximately 212,500 (Uriarte, 1977) in the Amazon
region alone.
It must be emphasized that the situation described
above is not due to pre-conquest population differences.
By all accounts the Brazilian Amazon River valley and its
tributaries were more densely populated than any part
of the Peruvian Amazon (Medina, 1834; Acua, 1918).
Rather it is due to an accident of geo-politics which gave
a large region of the Amazon basin to Peru, a country
which could not efficiently dominate or exploit it. The
Andean mountains were the barrier, and Lima, the capital
of Peru, was on the coast. In between were up to six
million Quechua and Aymara Indian peasants who provided


21
at once, labor for the new colony, and a management problem
which has occupied and plagued the dominant but minority
white-mestizo society ever since the conquest.
Yet the Peruvian Amazon in its recent social history
is very much a part of the Peruvian nation, even though it
forms a distinct region within national boundaries. How
ever, when Mariategui took up an analysis of Peruvian
society in 1928 he dismissed the montaa completely as
insignificant.
The montaa still lacks any significance
sociologically or economically. It may
be said that the montaffa or better put,
the floresta, is a colonial dominion of
the Peruvian state. (Mariategui, 1928:151,
translation mine)
At the time the lowland tropical forest was the sixth
largest lumber exporter in the world. Rubber export had
reached enormous proportions a few years before. The
department of Loreto had had two attempts within twenty
years at revolution. The scandals of the Putumayo River
in which the rubber gatherers enslaved and destroyed as
many as 40,000 native Indians were well-known history
(Singleton-Gates, 1959).
In the early part of the 20th century when people
turned their gaze to the lowlands in eastern Peru, it was


22
through strangely tinted lenses. Disagreements about
the nature of eastern Peruvian society usually revolved
about racial categories. Wilheim Sievers' well-known
Peruvian and Bolivian geography (Sievers, 1931) divided
Peru, as do most geographers, into three regions, the
sierra, the coast, and the montana. His estimate of
the population of Loreto (then in dispute with Ecuador)
was 150,000 people. Wiesse (1921) had computed earlier
that roughly one-half of these were Indians while 45.8%
were white or mixed. Sievers disagreed and estimated
that 60-70% were mixed "bloods." What all of this meant
in socio-cultural terms is difficult to fathom. Saenz had
this to say:
The population of ""eastern Peru_7 apart
from the small groups of mestizos and
mestizo-blancos is formed by the Jivaros,
the Chunchos, and other tribes. . .They
speak a great variety of languages from
the primitive inje-inje to others more
developed such as aguaruna-campa. Most
of these people live from hunting and
fishing and lead a nomadic life, although
some have initiated the agricultural
step, for they are dedicated to the
cultivation of small fields on the
riverbanks. (Saenz, 1933:13-14, trans
lation mine)
That views such as these were extremely unsophisticated
hardly needs to be pointed out. In fact, earlier accounts


23
were much more sophisticated. In 1791, a hundred and
forty years before, Fr. Manual Sobreviela, the dynamic
Fransciscan guardian of Santa Rosa de Ocopa, had visited
the lower Huallaga River region (Aristio, 1861:29-50).
His map clearly recognized the distinction between the
"faithful" Christian Indians (fieles or almas) and the
non-Christian Indians (infieles or savages) in the area
bounded by the Andes and the Ucayali River. In addition
he noted a stratum of white-mestizo governors and
priests. The distinction between fieles and infieles
was more than a label of religious convenience. It also
implied very different life styles between Indians
gathered in white-mestizo dominated communities who were
given Christian instruction and whose socio-political
organization had quasi-military hierarchies imposed on it,
and autonomous groups of Indians who avoided contact
with the whites and whose socio-political organization
was essentially egalitarian.
Travelers in the 19th century such as Herndon (1853)
were even more sophisticated about the montana society,
perhaps because the society itself was becoming more
complex than a simple Indian/White distinction would
indicate. In Herndon's accounts of the lower Huallaga, he


24
distinguished between free forest Indians who were
captured and sold as slaves to Tarapoto residents, peas
ant farmers without ethnic label (apparently the com
pletely assimilated remains of former tribes such as the
Yurimaguas and Aysuares in the town of Yurimaguas, for
example), Indians in towns under secular and religious
authority, such as the Aganos in Santa Cruz and the
Cocamillas in Lagunas, and finally the white-mestizo
stratum, including priests, military governors, and
traders.
Such elaborations as the above should have provided
the basis for some coherent theory of social structure in
the montaa, but by the 20th century it appears that the
White/Indian distinction had only become more polarized;
in the current sociological imagination the Indians had all
become reconverted into savages who spoke primitive
languages such as Saenz's above mentioned "inje-inje."
Part of the problem was that the only social scientists
who wrote about eastern Peru were anthropologists, and
they were totally uninterested in the current sociology
of the tropical forest regions. Farabee's 1907 expedition
to the eastern Peruvian lowlands, for example, makes no
comment on the condition of the Indians from whom he


25
collected data, beyond the bare mention that most of them
were "working for" rubber patrons (Farabee, 1922, 1, 77, SI,
96, 136, 152, 163). Even the terrible scandals of the
Putumayo (cf. Congress, 1913, 160; Singleton-Gates, 1959;
Valcarcel, 1915) seemed to stimulate no interest among
anthropologists to do anything except to hasten to "salvage"
what cultural data they could before aboriginal cultures were
completely destroyed. Tessman's (1930) treatise on eastern
Peruvian Indians gives but few hints about the real condi
tions of their existence and lays great stress on "pure"
scientific data. Studies in the acculturation genre were
not done in the region until recently. Anthropologists,
in short, worred a great deal more about the provenience
of "culture traits" than they did about slavery.
The net effect of such writing by ethnographers be
fore 1945 was to give the impression, quite falsely, of
an upper Amazon Basin full of wild Indian tribes who were
just coming into contact with traders and scientists.
Even Espinosa's monograph on the Tupian Indians (including
the Cocamilla, the classic 11 fieles, Indians who had been
living in or closely connected with missions for nearly
300 years at the time), mentioned merely that they were
dominated by patrons and described their ideal culture


26
patterns without further reference to their socio-political
environment (Espincfe, 1935).
One may argue that the ethnographers of the time were
merely fulfilling the demands of their profession. It is
not, after all, the job of an icthyologist to be con
cerned with birds, nor of the medical doctor to analyze
social structure. While this may be true, it cannot be
seriously maintained that contemporary socio-political
environments have so little to do with ethnography, even
if the goal of the ethnographer is only historical recon
struction of a culture. It is currently acceptable theory
that the environment in which social data is gathered
has a great deal to do with its interpretation and its
reliability.
Another factor which influenced the re-conversion
of the popular image of tropical forest social structure
from the fairly complex schemes along the great rivers
hinted at by Herndon and other travelers to the simple
White/Indian distinctions of the 20th century may have
been the growing pressures by a mercantile-extractive
economy for "civilized" workers. San Roman (1975) has
noted a change in the 18th century consideration of the
Indian as "pagan" who must be "christianized" to the


27
Indian as "savage" who must be "civilized." He lays the
burden for explaining the change in emphasis to the
expulsion of the Jesuits from the region in 1767 and the
increased demands on the Indians by a growing and secular
trading, agricultural, and extractive economy during the
19th and 20th centuries.
It is true that the role of workers in extractive
and large-scale agricultural enterprises often demands
that they understand and participate to some degree in the
money economy as they become pawns in a supposedly
"rational" system. It is probably not necessary for them
to understand the system completely to do so. One may
note in this connection that the term for the so-called
"half-breeds" who helped the rubber gatherers round up
Indians as workers was "racionales" which was equivalent
to calling them "civilized" (Singleton-Gates, 1959:230).
But neither the 19th century nor our own era has been
free of missionizing efforts, and the Jesuit era was
hardly free of encomiendas, extraction, trading, and
slaving, sometimes aided and abetted by the priests them
selves. The expulsion of the Jesuits and their replace
ment by a series of secular and Franciscan priests in
the late 18th century Mainas missions merely reflected


28
a relative shift in the power structure of the tropical
forest regions. It tipped the balance in favor of more
direct secular domination of the Indians by the white-
mestizo minority of traders and land-owners. Thus, the
image of a halcyon Jesuit period during which the Indians
were merely protected and instructed in religious matters
must give way to a more realistic assessment of the long
term economic importance of Indian labor to all montaa
settlement.
By the first half of the 20th century the distinction
between Christian and non-Christian Indians in the tropical
forest regions had become blurred, and Indian society
began again to be considered as one pole of a racial-
cultural dichotomy which had as its counterbalance the
white-mestizo sector. It may be that the image of two
somewhat disconnected sectors, a "modern" or "progressive"
one, and a "backward" or "traditional" one was easier to
hold in the low tropical forest regions because of the
writings of ethnographers mentioned above, but such
works as Roger Casement's report to the British govern
ment on the rubber camps (Singleton-Gates, 1959), the
congressional report on slavery in Peru (Congress, 1913),
and Harry Hoy's (1946) description of the Peruvian logging


29
industry were pregnant with implications of the links
between the allegedly separate sectors and complex
stratifications of local society based on access to
credit.
The 1940 Peruvian census reflects the lack of
detailed knowledge of the society of the region. The
census reported that at least 321,341 people lived in
Loreto but only 52% of them were actually counted (Censo,
1944:3). The other 48% were only estimated. The social/
racial classifications were White-Mestizo, Indian, Black,
and Yellow. Loreto was considered to be 65% Indian (Censo,
1944:46-47). The black and yellow populations were a
scant .16% of the total population.
The picture is not uniformly dark for this period,
however. Avencio Villarejo, in 1948, published Asi es la
Selva and in 1959 published La Selva y el Hombre which
located Indian groups with an excellent map and classified
them into such categories as "civilized" and "semi-civilized"
with much information on the current status of Indian
societies at the time (Villarejo, 1948, 1949).
In 1972 Sefano Varese published a study for the
International Work Group for Indigenous Affairs (IWGIA)
in which he tried to make sense of the society of the


30
tropical forest region. His work is the first serious
attempt to understand the contemporary social reality of
the Peruvian tropical forest Indians. A major theoretical
base for his analysis was the premise that the analysis of
the political and economic position of "tribal minorities"
was inseparable from the analysis of the entire surround
ing society. This was true because the empirical con
ditions for all aspects of their existence is imposed by
the dominant society. Nor can an analysis of their position
be made without taking into consideration the international
economic and political environment in which the Peruvian
national society exists (Varese, 1972:3-4).
All Peruvian tropical forest Indians are now and have
for some time been directly affected by the international
demand for a series of forest products, and the national
demands for certain cash crops. All tropical forest
Indians, with no exceptions, supply labor or products to
a national or international market, and all, with no
exceptions, have at least some material needs which cannot
be satisfied without participation in those markets. The
factor of national and international economic demands which
leads to concrete social, economic, political and cultural
relations between tropical forest Indians and the dominant


31
white-mestizo society is the most basic element of the
social reality of the tropical forest region.
Varese's schema, admittedly preliminary, for the
sociology of the lowland tropical forest region involved
setting up a polarity between the native societies and
the "white" society which I have called white-mestizo.
Native societies are defined by Vnese as "ethnolinguis-
tic minorities" rather than "tribes" to avoid giving the
impression that any given group is characterized either
by complete internal cultural homogeneity or by possessing
contiguous territory. The term seems specifically designed
to include the cases of the Campa and the Aguaruna, both
of which peoples are dispersed, and both of which have
rather distinct sub-cultural variations within the same
language group.
Having polarized the Indian/Non-Indian populations on
the basis of ethnic, cultural, and linguistic differences,
and especially differences in access to the means of produc
tion and power, Vnese presents an analysis of selvatic
society based on occupation and relative power. White
society is divided into three categories. Category one
is an urban based commercial sector and includes large
land owners or administrators. Category two is a rural


32
mixed group of small farmers and commercial traders and
outfitters. Varese calls these groups intermediaries
from the native viewpoint. Category three includes the
non-commercial network of government officials, military
police, and missionaries whom Varese calls "the communica
tors of white society." This group is especially charac
terized being ethnocentric and racist, and it forms the
channel by which national economic and political power is
transmitted to the tropical forest region.
The native population is grouped together into one
category, but with the admission that generalizations are
difficult within this sector, since occupation is variable,
and some incipient local stratification is visible with
native bilingual teachers and native boat-owners. In
terms of access to economic and political power, however,
the native population is always at the bottom of an
"asymmetric pyramid" vis vis the white-mestizo sectors.
The native populations along the navigable rivers tend to
be "disintegrated and atomized" by the demand for labor on
the part of the extractive economy, while tne highland
forest communities tend to cohere and consolidate around
their territory" (Varese, 1972:19).


33
The units of Varese's analysis of the native sector
are (1) ethnolinguistic groups divided into, (a) highland
forest and, (b) lowland forest regions, on the basis that
the two regions have been characterized by two distinct
sorts of frontiers, demographic (colonists who occupy land)
in the case of the highland forest groups, and economic
(extractive industries for the most part) in the case of
the lowland forest groups. Ethnolinguistic groups are
further divided into "native communities" which are
operationally defined as follows;
pihe Native Community is_/r the stable
socio-economic unit, bound to a specific
territory, with a type of settlement which
can be either nuclear or dispersed, which
recognized itself as a community, and which
is distinguished from other neighboring
socio-economic communities, native or not
(
Furthermore, Varese indicates that the two sorts of
frontiers have had differential effects on the highland
forest and lowland forest peoples. The choices of the
highlanders have been to retreat into marginal areas, to
be absorbed as agricultural laborers through a process of
being "detribalized" with resultant loss of land, or to
retain small and inadequate pockets of land in settled
regions. The choices of the lowland forest and river
groups are more subtle; (1) "De-tribalization. .through


34
a process of proletarization and ethnic disintegration
or dissolution" (Ibid., 10), but in most cases with the
retention of land for those who remain in the rural areas;
(2) Retreat to remote areas to avoid contact.
Toward a New Model of Lowlands
Native Societies
To arrive at an understanding of the current sociology
of native groups in the lowland forest, it is necessary
to revise some of Varese's concepts. This should be done
first by examining his units of analysis. The term
"ethnolinguistic group" is troublesome. It makes an
assumption which is difficult to support. That assumption
is that language is somehow necessarily related to
ethnicity. As Barth (1969) has shown, ethnicity may be
defined (for some purposes) as the maintenance of boun
daries between social groups over time by means of cul
tural differences. While language is usually one of
those cultural differences, there is no a priori way of
determining that it must be. The focus on language leads
to discussions of a native group which may vary widely
internally in social organization, responses to local
pressures, and degree of self-identity as natives as if


35
it were a homogeneous social unit. In other words, non-
linguistic factors may be much more important than lin
guistic factors in determining the nature of a given group's
adjustment to white-mestizo society. A focus on linguistic
factors also diverts attention from native groups which
maintain ethnic boundaries (or, as in the case of the
Cocamilla and most other members of the cholada, have
them imposed) in spite of partial or total loss of the
original native language. It is not difficult through
empirical research in the lowland forest to demonstrate
this point. In the highlands it is adequately demonstrated
by the peasant populations of the Cajamarca region whose
cultural differences are ignored because they speak
Spanish rather than Quechua.
Politically, the consequences of the emphasis on
language has led to the denial of the "native" status of
large sectors of autochthonous populations in the major
river valleys who may be losing at least the public use
of their languages and who are now under strong pressure
from a new wave of white-mestizo and highland Indian
agricultural frontiersmen. Populations such as the
Cocamilla are biologically self-sustaining and clear
ethnic barriers separate them from white-mestizo settlers


36
and wage workers. Nevertheless, the focus on language
has meant that they have no protection for their communal
lands even today, and their fish-protein base is being
constantly diminished by white-mestizo commercial fisher
men without any attempt by the government to give them the
guarantees which "natives" are supposed to have under the
law. Most of the Cocamilla speak Spanish, while generally
adults under 30 understand but do not speak Cocama.
If linguistic criteria are removed from "ethnolinguistic
groups" we are left with "ethnic groups." Two concepts
are implied which require definition if we are to arrive
at a new model for comprehending the social reality of
the lowland forest. These concepts are "ethnic" (with the
implication in this case of "native ethnic") and the con
cept of group. Groups are easier to deal with. Native
society in the upper Amazon has its locus in the unit of
the extended family (broadly defined) both today and in
the past. Numbers of extended families may form nucleated
settlements of individual houses, nucleated settlements
of one large house, or more dispersed "neighborhoods."
The nucleated settlements or neighborhoods tend to interact
socially around cultural institutions which usually take
the form of one or more integrative rituals throughout the
year.


37
The field of regular inter-personal interaction over
the yearly cycle is conceived by the native as constituting
a social unit which may be conceived in many cases simply
as a kinship unit. This unit is distinguished from other
social units of the same order. In the great majority of
cases the unit has a name. It is this unit which largely
corresponds to Varese's "native community" and his defini
tion can be accepted with the provision that the term
"stable socio-economic unit" does not necessarily imply
geographic stability except within very large areas, nor
does it imply that personnel do not freely flow across
community boundaries without destroying the conceptual,
territorial, or economic unit. The phrase, "bound to a
territory" must not be taken to mean that the territory
does not change as ecological conditions change. In
addition, it should be stressed that Varese's definition
of the "native community" says nothing about its socio
political composition, a feature of prime importance in
the dealings of the native community with the state as
Chapter IX will show.
Groups of communities form larger aggregates which
may be objectively and subjectively identified by cul
tural criteria which may or may not include language.


38
They may or may not be contiguous in space. Such aggre
gates have 1ittle or no importance today in economic
or political terms in the lowland forest. They may, how
ever, be conceptually significant in the broader social
organization of the group. Native ethnic group may be
used to refer to this aggregate or communities in the
abstract, or they may be given conventional "linguistic"
names such as Cocama, or Campa. Such terms, as pointed
out above, have more historical value than current socio
logical value. Given the broad ties of social organiza
tion and ethnic boundaries usually marked by linguistic
features, this ethnic and linguistic group corresponds to
what is frequently called a "tribe" in the literature.
Native communities in the lowland forest are articu
lated to the national society in a variety of ways. We
may conceive of a continuum ranging from more to less
domination in their dealings with white-mestizo sectors.
The few communities with relatively little contact tend
to be completely dominated by a few patrons whenever they
are in contact, while communities in permanent and con
tinuous contact along the great rivers choose the middle
men with whom they deal with relatively greater autonomy,
including working directly as individual community members


39
with agricultural development banks, or working as wage
laborers in extractive industries.
One might conceive of the above continuum as con
sisting of the poles "colony" to "class." Colonized
communities have access to upward social mobility only in
the very limited local context. The range of contacts
with the dominant society is narrow; perhaps a few traders,
lumber patrons, or missionaries may be the only members
of the dominant society which will have dealings with
them in a year's time. Their relatively isolated position
means that the prices they pay for material goods from
the dominant society is much more dependent on the quality
of the social relationship they have with the traders than
the actual market prices of the items.
The members of communities fully in the class system
may move up through that social system if they are able
to shed their ethnic identities through geographic
migration and subsequent education. This ability depends
on a knowledge of white-mestizo values, economics, and
politics which is quite outside the range of the colonized
(see Delgato, 1968, for a more general discussion of
social mobility in the Peruvian class system). In terms
of middlemen, the native community member in the class


40
system has relative autonomy in choosing which middlemen
he will deal with and the prices for his labor and
products are much more dependent on market factors than
are prices in the colony. In the "colony'1 native com
munity prices are strongly influenced by the dominant-
subordinate character of the white-mestizo/native relation
ship. Prices also vary according to the relative lack
of market information available to the native. To sum
up, the communities tending toward incorporation in the
regional class system have a much greater number of social
and economic connections with the rest of society than does
the colony, and those connections fall along a much wider
qualitative range. A major point made by this thesis is
that the communities tending toward incorporation in
the class system are the communities historically iden
tified as mission Indian or Christian Indian.
Such people are called the cholada by the dominant
white-mestizos of the Peruvian lowlands to distinguish
them from the tribal (colony) Indians. The term cholada
refers to the members of these communities in the context
in which it is normally used in the lowland tropical
forest area of Peru. The socioeconomic position of the
Cocamilla cholo is more similar to that of the rural


41
agricultural village Indians of the highlands in that the
term in the tropical forest region does not imply the
upward mobility of the persons to which it refers as
is usually the case in the highlands. One semantic
connection with the term as it is used in the highlands
is that the cholo of the tropical forest region stands
between persons called Indian and persons called mestizo
just as the cholo of the highlands does in many instances.
Thus, it refers somewhat imprecisely to obviously
acculturated native Americans. It should be added that
even though, objectively, upward mobility is possible
for only a few of the selvatic cholada, their insertion
into the national class system means that they are con
scious of the possibilities of such mobility. Tribal
Indians simply are not sufficiently involved in the
national structure to care about individual social
mobility within it.
The term "class" is used above advisedly. The broad
front of contacts which native communities in the regional
stratification system have with white-mestizo sectors,
and their similar lack of access to the means of produc
tion, may not be enough per se to identify them as
belonging to a social class. However, among the Cocamilla


42
at least, there is a definite and growing sense of class
identification frequently expressed in terms of native
versus Spanish surnames (apellidos bajos vs. apellidos
altos) which transcends the ethnic group. The identifi
cation as cholo is closely tied to the identification
as apellido bajo and is, in fact, a class identification
based upon cultural criteria and difference in access to
political and economic power.
To complete the methodological/conceptual inventory-
required for a new model of lowland tropical forest
native ethnic groups now requires dealing with the ex
tremely problematic terms "native" and "ethnic." As many
studies in the Peruvian highlands show, distinguishing
the "Indians" from the non-Indians is not as simple as
it might seem (Adams, 1953; Arguedas, 1952; Borricaud,
1954, 1975; Hammel, 1961; Mangin, 1955, 1965; Metraux,
1959; Mishkin, 1946; Nunez del Prado, 1951; Tschopik,
1952). This is true in part because Indian identity is
socially stigmatized all over the Andean countries.
It is popularly thought that in the tropical forest
areas the problem is somehow simplified; the "Native
Community Law" (20653 ) ,for example, does not even approach
the problem of defining who the natives are, and Varese's


43
article which is discussed above conspicuously avoids
it. It seems to be assumed that the natives will step
forward and identify themselves, or that there will be
criteria, clear to all, on which to base an application
of the law. The laws and their application clearly imply
that if the natives do not so identify themselves, and
if they are in the economic position of being subsistence
mixed farmers who sell small surpluses to the regional
markets, then they will be treated like the Cocamilla as
campesinos (peasants) along with white-mestizo settlers
in a similar structural position. They are thus classed
campesinos regardless of other factors in their mode of
production such as discrimination in access to credit,
organization of labor in communal forms, and lack of
familiarity with white-mestizo bureaucracy which put
them at a disadvantage with regard to the white-mestizo
settlers.
The Problem of Ethnicity
When Metraux (1959:227) rejected the list of ob
jective cultural traits which supposedly defined the
Indian in the Peruvian highlands (i.e., coca chewing,
birthplace, craft characteristics, etc.) as being too


44
imprecise, he proposed the criteria of ascription and
self-ascription in order to settle the issue. He pre
ceded Barth by ten years in this formulation (Barth,
1969). Barth, however, took the issue farther, and
probed the logic behind ascription and self-ascription.
He concluded that ethnicity depended on the maintenance
of boundaries between social units over time by means of
cultural differences. Following Barth, however, one
cannot predict what "cultural differences" will provide
such boundaries (i.e., ritual, food habits, dress and
ornaments, etc.). Thus, Barth's definition is not a
scientific definition, if one defines science as the art
of generating statements which have predictive power.
Barth's "definition" is, in fact, merely an empirical
description (Cf. Gomes, 1977:38-40 for an interesting
discussion on this point). Another problem is that if
we follow Barth and define ethnic groups as socio-cultural
systems enclosed by cultural boundaries, a certain amount
of tautological reasoning automatically follows. State
ments such as "such and such ethnic group disappeared
because it failed to maintain its boundaries" become
common. If the question is changed to a query about why
a given ethnic group failed to maintain its boundaries,


45
the answer usually becomes, "because it was 'etribalized1
or weakened as an ethnic group." If an ethnic group is only
defined by its boundaries, then the two terms are synonymous.
In any case, such a definition of an ethnic group is of
little practical help in determining if a given group is or
is not an ethnic group.
The fact is that most studies of ethnicity and ethnic
groups begin with the assumption of the existence of such
groups and proceed with an examination of their boundary-
maintaining mechanisms. But what calls such groups into
being and what is the cause of their persistence, or alterna
tively their demise, are two separate questions. The cause
of their persistence and the means of their persistence are
also distinct questions.
In the usage applied here it is necessary to separate
the term "ethnic group" from a usage common to the social
sciences. Wagley and Harris (1958:244-253) point out that
the term has become synonymous in some sectors with
"minority group." As such, ethnic groups can only be
considered to have existed since the rise of state
societies which included them, thereby making them
minorities. But this usage misconstrues the nature of
ethnicity. In the sense used here, ethnicity would be
the sense of belonging to a cultural group regardless
of whether it is a "tribe" or an "ethnic minority."


46
Ethnic group, then, refers to the group of primary cultural
identification regardless of the group's objective status
with regard to the state society. If an ethnic group is
included in a state society, as all modern ethnic groups
are, it becomes an ethnic minority.
In the above sense, ethnic groups appeared on the scene
as social organizations long before the rise of the state.
Generations of anthropologists have indicated that in a
pre-state condition, ethnic groups might be defined as
territorial groups organized by theories of consanguinity
(or simply geneology) and affinity and residence rules.
Boundary mechanisms vary, but language differences, or at
least certain linguistic features, are common. Such terri
torial units must be distinguished from most groups claiming
"ethnicity" in the modern world, and the term is used in an
extremely variable way today. The features common to both
are that the theme of material interest runs as a motive
through the course of history, and all ethnic groups like
all social groups must solve problems of continuity, com
munication, authority, and ideology, as well as boundary
problems in order to survive.
There is a further problem with Metraux's and Barth's
formulations of the nature of ethnicity which is a purely


47
practical problem in operationalizing a definition which
can be used in the lowland tropical forest region of Peru.
Eidham (1969) has shown that in a situation in which ethnic
identity is stigmatized, the aspect of self-ascription as
a member of an ethnic group tends to be acted out only
in private situations. The ethnic boundaries are operating,
but they are not easily visible in public life where the
two sectors interact. In the case of eastern Peru this is
precisely the case because of the situation of the Cocamilla
and other native ethnic groups as conquered and dominated
peoples. This makes it highly unlikely that many Cocamilla
or any other Indians in their position are going to step
forward and identify themselves as such unless they see some
very concrete economic or social advantage in doing so.
Since the Cocamilla and others in their position are rarely
offered information as to possible economic advantages of
the public assumption of Cocamilla identity, they do not
proclaim publically their ethnic membership.
All this leads to a dilemma: What, in fact, is the
minimal definition of an ethnic group which can be
operationalized and has objective significance? The answer
is clearly that such a definition is as impossible as
defining a concept of "word" which will be valid in all


48
languages. Pursuing the linguistic analogy, in the same
way that all non-gestural words may be assumed to have a
carrier, the voice, all ethnic groups have an essence; like
all distinct societies they may be assumed to have provided
for biological and social continuity. Putting the methodolo
gical cart before the horse, this means that such groups must
have a theory of consanguinity (geneology) and affinity
which is expressed in behavior, which in turn implies rules
of inclusion and exclusion, and the authority to enforce
them (Wagley and Harris, 1958:1-14, 237-295).
Fortunately, just as the concept of "word" may be
defined structurally for a given language, a concept such
as native ethnic group may be formulated in terms of
regional social behavior. In the upper Amazon region of
Peru, a native ethnic group might be defined as follows:
A native ethnic group is a cultural group,
the members of which are inhibited from
marrying members of the larger society of
Peruvians. It derives its composition from
the resultant endogamy and from the appli
cation of its own exogamic principles as
distinct from Catholic canonic law to persons
outside the primary kin group.
The above definition depends for its validity on two
social facts. The first is that persons with "native"
surnames infrequently marry persons with Spanish surnames
in the region. The second is that all native ethnic groups


49
have theories of consanguinity which are different from
white-mestizo sectors. The Cocamilla, for example, pro
hibit marriage to any person bearing one's own paternal
surname under the theory that they are one "blood." Thus,
exogamic principles are extended to persons outside the
group which a white-mestizo would consider the "primary"
kin group (i.e., 1st, 2nd, and 3rd cousins).
Since theories of consanguinity loom as important in
native social organization, it may be predicted that life
in native communities will be organized along kinship lines
whether or not the community is "tribal" or "detribalized"
and part of the class system. It may also be predicted that
because of the relations between social organization and
the rituals and symbols which make social life coherent,
any native ethnic group will have at least one integrative
ritual at regular intervals which will tend to be exclusive
and which, while it may be formally similar to that of a
neighboring ethnic group, will have a content which expresses
the individuality of the group practicing it. It is important
to stress again that the "detribalization" of native com
munities is not synonymous with their disappearance.
The question of what a native ethnic group is and how
one may determine whether a given ethnic group is or is not a


50
native ethnic group is now largely solved. The remaining
question, as far as this dissertation is concerned, is one
of determining what is the essential relation between the
native community and the state. The native extended family
mode of production and the importance of kinship units in
native social organization provide the basis for a theory
of this relation. These two features of native life mean
that native communities will tend to be politically acephalous
and organized around related groups of families rather than
central political figures with overall authority as in the
case of white-mestizo culture. Given this organizational
base, a theory of the relation between the native community
and the state would necessarily be one of their mutual and
natural antagonism, for the state is a bureaucratic organi
zation which depends on the adherence to formally agreed-
upon rules. The state cannot tolerate the acephalous com
munity. Thus, we may predict that the native community will
only be drawn into the orbit of the state by deception and/or
violence, and it will be maintained in the state system only
by duress. Whenever the state tries to impose itself upon
the native community directly on a day to day basis, one
may predict that conflicts and clashes will occur which can
be traced to che opposed nature of the state and the native


51
community social and economic organization. When these
clashes are overcome, it will only be at the expense of
converting the native community into a "non-native" com
munity, that is by changing native cultural behavior into
acceptable white-mestizo behavior.
The chapters which follow are arranged in two parts.
After a brief description of their ecological setting and
some basic information about their life-style pre-
historically, Cocamilla history is explored in order to
examine the changes they have undergone as a result of their
contacts with the Western world through time, and, I hasten
to add, as a result of the internal logic of their own social
system as it is supported by their mode of production.
Special emphasis will be given to their position in the
developing social stratification of the region. Two related
problems will also be explored in the course of this work.
The first problem was outlined in the first part of this
chapter. It is a problem of conceptualizing the lowland
tropical forest region as something other than the two-class
or two-race region it is commonly considered to be. The
Cocamilla and others like them form a lower class which is
neither Indian in its own conception, or mestizo in either
their own or in the mestizo view.
It is a class


52
ideologically based on their historical separation from other
Indians as Christian Indians, and created by the praxis
which that status implies. Though called cholos their
position in the regional economic structure and their his
torical trajectory has little to do with the term cholo as
it is used in the highlands or on the coast (cf. Fuenzalida,
1970). The second problem concerns the units of sociological
analysis. There are the household, the native community,
and the native ethnic group.
The historical depth seems essential to sound sociologi
cal analysis, but it would be included in any case, if for
no other reason then for the very practical reason that the
Cocamilla are now in a rapidly changing and developing world,
and, as Levy (1972) has observed, the most cruel and stupid
mistakes in modernization result from ignorance about the
history of the people involved.
The second section will continue the theme of the
relations between the Cocamilla and the state society in
which they are included, this time synchronically. The
interface of the relationship will be examined at the level
of the economic system, the level of social organization,
and the level of ideology and identity. A final chapter


53
will draw conclusions as to the reasons for their survival
thus far from the perspective of cultural materialism,
and attempt to project a trajectory for them based on
possible actions by the Peruvian government.


CHAPTER III
THE PHYSICAL ENVIRONMENT OF THE COCAMILLA
The eastern lowlands of Peru, mostly covered with
trees and shrubs except where human use has destroyed it,
presents two orders of problem to the Peruvian nation.
The region presents formidable problems in settlement,
strictly from a tactical and ecological standpoint. An even
more serious problem is that few if any people have ever
understood the region thoroughly in both its social and
ecological aspects. To make a sweeping statement even more
sweeping, I will include most of the people responsible for
planning and implementation of planning in the tropical
lowlands in the ranks of the ignorant. To calm outraged
friends and colleagues, the writer must be included among
their ranks as well, for the complexity of the problem is
overwhelming, and the division of labor among academic
disciplines mitigates against global views.
To further the point about how little the region is
known in general, even after 330 years of occupation and
the recent intense search for oil in the Peruvian lowlands,
54


55
there are no topographical maps available for any of the
lowland forest. The impression is gotten from the literature
which points out how little slope there is in the 4,167
kilometers from the Atlantic Ocean (Elevation 0 meters) to
Iquitos (Elevation 300 meters) along the Amazon River, that
the entire Amazon basin is as flat as a table. This im
pression pervades even the thinking of normally careful
planners. The Swiss project of cattle-raising at Genaro
Herrera on the Ucayali River, for example, had serious
problems with cattle when the planners cleared the forest for
pasture. Rolling hills, holes, and deep gullies severely
prejudiced their effort. The terrain throughout the lowland
forest region is very accidental within limits of fairly
low relief, and this has many consequences for native agri
cultural practices. The old people among the Cocamilla
used to say that when the earth changed from water to land,
the waves got frozen into place.
Different people split up the totality of the forested
lands east of the Andes in different ways. The usual ceja/
selva distinction based on altitude above sea level was
echoed in Pulgar Vidal's Geografia del Per (1968) when he
divided eastern Peru into Selva Alta and Selva Baja with
the former occupying the altitude of 400 to 1,000 meters,


56
and the latter occupying the elevations under 400 meters.
Ecologists today are able to improve on the scheme with the
concept of "life zones" (Holdridge, 1967) based on three
factors: average annual bio-temperatures (the annual average
of temperatures between 0C. and 30C.), average annual
rainfall in millimeters, and the potential evapotranspira-
tion ratio(mean annual temp, in C. X 58.93), which expresses
( mean annual rainfall in mm. )
the relation between rainfall and evaporation. By Hol-
dridge's system much of the lowland forest in the Cocamilla
area would be classified as "premontane tropical moist
forest." Table 3.1 shows the relevant climatological data
from 1976 (Bandy and Benites, 1977), and for comparison,
the average rainfall from a 21 year sample. These data were
taken in Yurimaguas, Loreto Department, and are very similar
to figures for Iquitos, indicating that the totality of the
area immediately along the lower Huallaga, lower Maranon,
and lower Ucayali rivers may have a similar climate.
One should be aware, however, that ecologists currently
working on the problem now believe that the entire lowland
forest under 400 meters is probably a mozaic of premontane
tropical moist, tropical wet, and tropical dry forest,
depending on purely local convection cells which seem to
remain persistently in some regions (Ewell, personal


Table 3.1
Climatological Data from Yurimaguas Experimental Station1976
Month
Maximum
Temp.C.
Minimum
Mean
MM
Precip.
Wind in
Meters/Sec.
Relative
Humidity
Solar
Radiation
Cal/cm2/day
January
30.8
22.0
26.4
396
0.86
84.8%
337
February
31.5
22.2
26.9
67
1.14
80.5%
357
March
31.0
22.3
26.7
222
0.92
82.5%
355
April
30.5
21.9
26.2
245
0.53
89.7%
332
May
30.6
22.5
26.6
167
0.53
87.4%
340
June
30.6
21.9
26.3
93
0.42
86.5%
320
July
30.1
17.9
24.0
62
0.67
76.8%
371
August
31.2
19.9
25.6
126
0.55
77.1%
407
September
32.6
19.6
26.1
129
0.55
77.5%
416
October
32.1
21.1
26.6
402
0.61
81.2%
397
November
31.7
21.1
26.4
230
1.17
81.1%
408
December
31.1
21.2
26.2
219
0.88
82.6%
387
Annual
31.2
21.1
26.2
2359
0.74
82.3%
369
Daily
Absolute
35.8
11.2
115
609
(Data from Bandy and Ben.ites, 1977:3) .


monthlv rainfall
300
DATA FROM SOIL
SCIENCE DEPARTMENT,
NORTH CAROLINA
STATE UNIVERSITY,
1974
50
annual mean 2 11 4 mm
J FMAMJ J ASOND
month
Figure 3.1
Graph of rjwenty-one Year Average Rainfall in
Yuriraaguab.
U1
oo


59
communication). This variability may go a long way toward
explaining some of the cultural diversity noted in the region,
even among non-riverine Indians.
The life zone classification does not tell the whole
story, however. Various micro-environments within a life
zone have profound consequences for human occupation. The
conventional distinction between riverine Indians and
inland Indians (or forest Indians) reflects great differ
ences in adaptation to the two major poles of subsistence
resources in the lowland tropics.
Proteins and Populations
Lowie observed that the major part of the human popula
tions of the lowland forests were more adapted to the rivers
than to the areas between the rivers. While he recognized
that some people were canoeless, he considered the possession
of "effective river craft" a diagnostic feature of the cul
tures of the lowland tropical forest (1963:1).
Meggers (1970) pointed out certain similarities in
density of settlement and ease of subsistence among
populations living in the limits defined by the margins
of the river valleys. She contrasted these populations
with the more scattered and migratory populations in the


60
areas between the rivers which she supposed to be an adapta
tion to poor soils and low protein availability, to name
the two most important variables.
Lathrap (1970) agreed with the basic division of
cultural types (while disagreeing with Meggar's assessment
on general population movements) and took the point far
enough to insist that Panoan Indians who lived inland from
the Ucayali River were "de-cultured" refugees from river
populations, driven inland at some previous time by fierce
competition for the fertile lands of the river valleys.
They had been unable, he said, to sustain the relatively
rich symbolic life of the riverine Panoans, primarily
because the poor soils and protein resources of the inland
areas did not permit large and enduring settlements.
Gross (1975) took both Meggars and Lathrap to task
for emphasizing relative soil quality rather than relative
richness in animal proteins between river floodplain and
inland areas. He brought a great deal of data to bear
on the subject and emphasized the very low ratio of animal
mass to total biomass in the inland areas. The distribution
of proteins, he maintained, was sufficient in and of itself
to explain population size and stability. His Peruvian
data were taken from Bergman (1974) who studied the


61
subsistence patterns of a group of Ucayali Shipibo as an
example of riverine subsistence. These Shipibo had no
access to high ground and their entire agricultural cycle
was based on the rise and fall of the river, for in the
rainy season the river flooded all their lands.
While conceding the essential validity of the riverine/
inland distinction, it seems wise to hedge a bit. Recent
studies have shown rather large settlements of Matss
(Mayoruna) between the Ucayali and Yavari rivers, hardly
the scattered fugitives predicted by Lathrap's model
(Romanoff, personal communication). Campos (1977) has
studied Shipibo on the Aguatia River far from the major
river valleys who seem to exploit both river and inland
areas about equally. Previous studies of the animal mass/
total biomass have not included stream fish, and no studies
of this kind have been conducted in eastern Peru. In all
of the area treated by this study, small and large streams
(quebradas) wind their way inland for long distances, often
carrying surprising quantities of fish species unique to
the stream environment, and easily exploited with fish
poisons. Even the floodplain Indians such as the Cocamilla
did a considerable amount of hunting and gathering in the
inland forests during flood times. Thus, there seem to


62
be groups who exploit both riverine and inland environments
and no simple separation of the two kinds of groups is likely
to be accurate.
Land and Water Features of
the River Valley
The area of interest to this study is mainly the lower
Huallaga River valley between Yurimaguas and the confluence
of the Huallaga and the Maranon. It will have reference,
however, to the Maranon as far upstream as Borja and as
far downstream as the mouth of the Napo River, the Pastaza
River as far upstream as Lake Rimachi, and the Ucayali from
its mouth to the area around the current site of Tierra
Blanca, some 12 days upstream by canoe. For this reason,
these areas are included in Map 1, but the following
description is of the lower Huallaga region, the most signi
ficant area for the Cocamilla. The river valley dynamics,
of course, have wide application.
Thirty miles downstream from Yurimaguas, near the town
of Santa Maria, the Huallaga River leaves the confining low
hills through which it has flowed rapidly, being unable to
easily widen its channel, and slows down abruptly, dumping
an enormous load of sand just below Santa Maria. From that
point on, it becomes a wide threaded river, moving leisurely


63
at about 4-5 kilometers per hour, and meandering back and
forth across its valley boundaries. Between Santa Maria
and Yurimaguas, entrenched meanders indicate that the uplift
which provides the inland high ground between the Huallaga
River and the current location of Xeberos is more recent
than some of the Andean uplift, and in fact earthquakes are
frequently felt all over the lower Huallaga region.
Below Santa Maria the width of the river floodplain
averages close to 5-8 kilometers. As the river migrates
back and forth over this valley,it has a predictable dynamic
cycle. The cycle is born in the fact that while the water
tends to run in the shortest straight line from A to B,
following gravitational laws, the unequal pulls of river
channel and sand bars tend to make the river currents
shuttle back and forth, forming curves (vueltas). Distance
between riverbank communities is often expressed in terms
of the number of vueltas between them.
The curves lengthen into long and elaborate U forms
as the faster-moving currents on the outside of the curve
wear away the bank and the slower currents deposit sand
on the inside of the curves in longer and longer beaches.
These beaches are the major resource area of the river
channel itself, or were in pre-conquest times, for fish


64
could be speared along their margins, and turtles, turtle
eggs, and iguana eggs could be gathered in July and August
on the beaches themselves. The main part of the river
channel was effectively sterile for native use, for they
lacked the means to exploit the resource.
Eventually gravity wins the struggle of the vuelta
and the river shortens its channel by cutting off the U and
isolating it into an oxbow lake (cocha or tipishca) connected
to the main river by deep canals (canos) which serve as
channels to fill and drain the lakes as the river goes up
and down from day to day and seasonally in response to local
and regional rains. In high water time, from February until
May (and a less drastic flood in November and early December)
other channels to the lakes open up (sacaritas) and in all
seasons the lake and river system forms one connected water
mass.
The river is never stable. It is always either rising
or falling and the lakes connected to it rise and fall in
rhythm. Tremendous surges of water go in and out through
the canos and they may change the direction of their
current quite abruptly as the lakes change from fill to
drain. The rise and fall of the lakes and rivers is an
important feature energizing the floodplain ecosystem for
it allows rapid incorporation of plant material cycling


65
from an enormous area of forest into the lakes and into the
total water system. The drastic rises and falls (as much
as tvo meters in 24 hours) of the lakes create an unstable
ecosystem for the fish populations. The instability favors
the propagation of "R" selected species, selected for the
ability to grow and reproduce rapidly, and this feature of
the ecosystem dynamics helps explain why it is that the lakes
and rivers of the lowland tropical forest are such an extra
ordinary resource for native populations. The lakes,
especially, are rich in fish and reptile populations.
Figure 3.1 shows the rise and fall of one such lake on a
weekly basis for 1977.
Eventually, the oxbow lake silts in and its canos close
except in high water. The Cocamilla vividly express what
happens then when they say the lake "dies." Aquatic plants
take over and the lake is gradually made uninhabitable for
fish, although some "dead" lakes have large populations of
paiche (arapaima gigas), the fish known as pirarucu in Brazil
and the largest freshwater fish in the world, for a long
time before they are extinct. Eventually the lake becomes
a muddy bog colonized by a few tree species, waiting for
the next migration of the river channel to destroy it.


NO
APPROXIMATE
METERS ABOVE SEA LEVEL
L-J
99


67
The total length of time from birth of a vuelta to
the death of the resultant lake may vary widely. One
vuelta observed over the 19 month field portion of this
study lengthened the arms of its U over 1,000 meters after
being relatively stable for 50 years, putting a community
on the cutting bank into full flight inland. Once a lake
is formed it seems unlikely, from the historical evidence
on riverine communities gathered in this study, that the
lake can exist for more than 200 years.
One other feature of the lakes should be noted. During
the flood season from February until May many fish move into
the lakes and into the surrounding forest which is flooded.
In the forests they can feed more directly on plant
material including the direct utilization of fruits, but
they become very hard to catch by native techniques. This
creates a protein crisis at least once a year. A related
feature of the flood is that when the lake goes back into
its normal boundaries the fish populations become more and
more dense as the size of the water body is reduced until,
at a critical point sometime in June or July, they begin
to migrate out of the lake in phenomenal numbers. The
local term for such migrations is the "mijano" and at
such time fishing in the canos, through which the fish


68
must pass, is very productive. Natives today sometimes try
to block the channel temporarily and net as many fish as
possible. Leaving the lakes, the fish migrate to the
rivers and move upstream, forming pockets of local rich
ness for the communities which happen to be where the fish
are at any given time.
The land features of the floodplain take their forms
from the dynamics of the river. Every time the river spills
its banks it deposits the greater part of its sediment load
within 30 meters of the channel, creating rather uneven
natural levees which tend to be higher in elevation than
the lands immediately in back of them. The zone of the
levee (the banda) is the zone normally used today for river-
bank agriculture. The crops most frequently grown are
plantains, corn, sweet manioc, taro, peanuts, sweet
potatoes, and recently jute (malva urena).
Old levees along old river channels and old oxbow lakes
may be high enough so that only exceptionally high floods
in the rainy season can cover them. These areas are called
restingas and are an.important land resource for the
natives, not only for agriculture, but also for hunting.
When the flood waters rise in the floodplain, terrestrial
animals tend to concentrate on the restingas and hunting


69
them becomes easier. Many Cocamilla today only hunt such
animals when the restingas become islands, and a special
verb, restinguiar, describes the activity.
The lower lands of the floodplain are of two kinds.
Lands lying so low that even moderate rises in the water
level will flood them, and which tend to act as rain catch
ment basins, are called tahuampas and are not used for any
purpose except for gathering and occasional hunting of the
tapir and the capybara which inhabit them. Lands which
are not high restingas but which have adequate drainage
are called bajiales (also used as a generic term for any
lowlying area), and are farmed and hunted. These lands are
of exceptional significance today for cash-cropping and
they flood annually, but with a much lower rate of sedi
mentation than the banda. Today they are mainly used for
jute, corn, watermelon, and various herbs.
The last significant land forms of the river valley
are the beaches along the river which are exposed from late
May until November. These are of two kinds. Sandy beaches,
over which water flows too rapidly to deposit silt and
which are not particularly good for any crop, are called
playas. As mentioned earlier, these beaches are signifi
cant fishing and gathering resources. Beaches over which


70
water runs slowly have an annual layer of silt deposited
on them and are used to plant beans, peanuts, and (recently)
rice. These beaches are called barreales. Appropriate
crops can be grown on them at a comparatively light cost
in labor energy.
Land and Water Features of
the Upland Plain
The drainage of the uplands is far from complete. All
over the upland areas are rain catchment basins which tend
to be swampy during most of the year. These are called
ba j jales, the same as the annually flooded farmlands of
the river basin. The ground between the bajiales is called
altura, a term which refers to any land which never floods
from the rivers. Nevertheless, some of the altura does
flood, not from the rivers but from local rainfall rushing
down the larger quebradas which cut their way toward the
river from the divide between the Huallaga and Ucayali
rivers. These quebradas can be quite good sources of fish,
for many of them are born not in the leached sediments of
the ancient ocean and lake beds of the Amazon basin, but
rather in sedimentary bedrock which is comparatively rich
in nutrients. The native names for these quebradas fre
quently express a distinction between "white water"


71
(yurac yacu) and "black water" (yana yacu) a distinction
which some ecologists think is significant in terms of the
environment the two types of streams provide for fish
populations.
Many quebradas have their own small floodplains which,
in cases of heavy rainfall flood for a period ranging from
two hours to two days, creating a permanent micro-environment
with more friable soils than the usual upland soils. These
areas are good for hunting and for farming. The crops
planted on them include most of the repertory of the banda
and the bajiales (i.e., plantains, corn, manioc, sweet
potatoes, taro, herbs,and sometimes (recently) rice and
jute). These lands are recognized in the native classifi
cation system for soils as varinales, meaning that the
varina palm (phytelephas macrocarpa) is a dominant under
story plant. The palm has cultural significance as the
source for the gable covering on native houses. A worm
which grows in the palm is consumed, and the fruit of the
palm became valuable for a time as button material before
the widespread use of plastic buttons.
The sandier upland soils are recognized as irapayales.
The irapaya, an unidentified plant with a palmate arrange
ment of long laurel shaped leaves, is used for roofing


72
material and the soils on which it grows are recognized
as being good for cultivating manioc and a root used for
fish poison (barbasco), but not for plantains or corn.
Land along quebradas which do not flood, and which tend
to have heavier clay soils than those that do flood, are
also valued, possibly because of the drainage offered by
the quebrada. These soils are used for plantains and
(recently) occasionally rice.
On the west side of the Huallaga River, the floodplain
extends much farther inland, and relatively little of the
land forms are presently used for farming. The settle
ments tend to be either on the river bank or on the shores
of oxbow lakes.
The impression is widespread that the adaptation of
the aboriginal populations in all of the Amazon valley was
mainly to the rivers. The generic term in eastern Peru,
for example, for rural residents is ribereos. A close
reading of the Cocamilla adaptation today, however, reveals
that the floodplain lakes are much more important than the
rivers as fish protein resources. This, as pointed out
before, is because some of the lakes are closer than the
rivers to the sources of primary production emanating from
the forests, and they are, therefore, much richer in fish


73
populations. They are also easier to exploit. The
lakeshores and valley margins are closer to alturas, and
the present Cocamilla farming system involves exploiting
both alturas and ba j jales (used here in the generic sense
to include restingas; in other words, all floodplain land
which is farmable except for the beaches). Even popula
tions along the west bank of the river who do not have
easy access to inland alturas, normally have one or two
fields in the east bank alturas, sometimes a day's travel
or more from their communities. These fields are a sort
of insurance against extremely high or long-lasting floods,
guaranteeing that some food will be available even in
cases of emergency. In all probability the Cocamilla in
pre-conquest times did not use the alturas east of the
river because of conflicts with the Aguano-Chamicuro people.
The Larger Region
The valley of the lower Huallaga River is only one of
the valleys which concern the Cocamilla historically,
although by far the most important. A small part of it
was their homeland at the time of contact, and they have
subsequently occupied most of the lower 100 kilometers of
it. They have recently occupied lands along the lower


74
Marafifon Valley, and have begun to occupy some of the rivers
and quebradas north of the Maraon River. The displaced
and the dissatisfied swell the migrant barrios of Yurimaguas,
Lagunas, and Iquitos. Their familiarity with the region is
long-standing as will be seen. At least from the mid-19th
century on and possibly before, they used lake Rimachi,
near the Pastaza River as a major resource for Manatee and
Paiche fish, traveling up to 11 days in canoes to get
there, and staying until the Muratos drove them out. Before
the conquest they and the Cocama in confederation were the
scourge of the entire lower Huallaga River and the Maranon
from Borja to the Ucayali River. According to some accounts,
they prevented other Indians from occupying the shores of
the river or the accessible floodplain. After they were
reduced to a few starving and sick Indians by the 1680
epidemics they became river explorers and travelers for
whites. The theatre in which the history of the next
chapter takes place is this larger area of operations with
special emphasis on mission sites. They will be traced
from contact to the present and at all times will be seen
in opposition to the dominant Spanish and later white-
mestizos. Their history is a history of action and
reaction, not the blending of peoples. It reflects the


75
fixed intent of peoples to remain separate under conditions
of direct domination. First, however, a few pages will
be devoted to reconstructing what is known about their
culture before contact, and their placement with regard to
other ethnic groups. Map 3.1 shows the region pertinent
to the Cocamilla and Cocama.


I
cr>


CHAPTER IV
THE PREHISTORY AND ABORIGINAL CULTURE
OF THE COCAMA AND COCAMILLA
The prehistory of the Cocama and Cocamilla in the
natural realm described in the previous chapter is some
what obscure. If Lathrap (1970:145) is correct in identify
ing the central Ucayali River Caimito complex as belonging
to the ancestors of the Cocama, the probability is that
the Cocama fissioned from the Omagua not too long before
the 14th century A.D., and pushed on upstream and into the
Ucayali. They must have established themselves as far south
as the Tamaya River at that time. Lathrap's model of Tupian
expansion implies that they had been pushing the Panoans
upstream on the Ucayali River and that the process is
ongoing today. It is difficult to reconcile this view with
the historical data for the Cocama. At the time they were
discovered in 1557 by the expedition of Juan de Salinas
Loyola (Jimenez de Espada, 1897:LXXIII), they were isolated
between a group called the "Benorinas" and the Panoans to
the South. It seems extremely improbable, using Salinas
77


Full Text

PAGE 2

7+( ,19,6,%/( ,1',$16 $ +,6725< $1' $1$/<6,6 2) 7+( 5(/$7,216 2) 7+( &2&$0,//$ ,1',$16 2) /25(72 3(58 72 7+( 67$7( %\ $17+21< :$<1( 672&.6 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( &281&,/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,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 3

7KLV ZRUN LV GHGLFDWHG WR WKH SHRSOH RI $FKXDO 7LSLVKFD ZKR JLYH VR IUHHO\ DQG ZKR KDYH UHFHLYHG VR OLWWOH

PAGE 4

f

PAGE 5

35()$&( 7KH WLWOH RI WKLV ZRUN ZDV FKRVHQ LQ RUGHU WR GUDPDn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

PAGE 6

8QIRUWXQDWHO\ IRU WKLV YLHZ VRFLDO UHDOLW\ LQ HDVWHUQ 3HUX GRHV QRW PDWFK WKH %UD]LOLDQ PRGHO :KLOH WKHUH LV FHUWDLQO\ D ULEHUHR VWUDWXP ZKLFK LV HTXLYDOHQW WR WKH %UD]LOLDQ FDERFOR ZRXOG FDOO WKHP ZKLWHPHVWL]R UXUDO IURQWLHUVPHQf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

PAGE 7

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n SURDFKHV 6WRFNV f ,I DOO RI WKH FKRODGD ZHUH FRXQWHG WKHLU SRSXODWLRQ ZRXOG HDVLO\ UHDFK D VLJQLILFDQW SHUFHQWDJH bf RI /FUHWRnV SRSXODWLRQ RI FORVH WR RQH DQG D KDOI PLOOLRQ SHUVRQV 6LQFH WKH VXEMHFW ZLOO QRW DULVH DJDLQ XQWLO WKH ODVW FKDSWHU RI WKLV GLVVHUWDWLRQ ZRXOG OLNH WR VD\ VRPHWKLQJ DERXW WKH WKHRUHWLFDO RULHQWDWLRQ ZKLFK LV LPSOLFLW LQ PXFK RI WKH RUJDQL]DWLRQ DQG XQGHUVWDQGLQJ RI WKH PDWHULDO FRQWDLQHG LQ WKLV ZRUN KDYH EHHQ IRU VRPH WLPH DQG YL

PAGE 8

FRQWLQXH WR EH LQIOXHQFHG E\ WKH SHUVSHFWLYH LQ $PHULFDQ DQWKURSRORJ\ FDOOHG FXOWXUDO PDWHULDOLVP E\ VRPH FI +DUULV IRU D WKRURXJK WUHDWPHQW RI WKLV VWUDWHJ\ IRU RUJDQL]LQJ RXU WKRXJKWV DERXW FXOWXUDO PDWWHUVf 7KH GHEW RI FXOWXUDO PDWHULDOLVP WR WKH GLDOHFWLFDO PDn WHULDOLVP RI 0DU[ KDV EHHQ JHQHUDOO\ UHFRJQL]HG FRQVLGHU P\VHOI WR EH DQ HFRQRPLF DQG HFRORJLFDO DQWKURSROR JLVW 7R PH WKH VXEMHFWV DUH HQWZLQHG WR D GHJUHH ZKLFK PDNHV WKHLU VHSDUDWLRQ HYHQ IRU KHXULVWLF SXUSRVHV LPSUDFWLFDO &XOWXUDO PDWHULDOLVP DV D UHVHDUFK VWUDWHJ\ VXJJHVWV DPRQJ RWKHU WKLQJV WKDW WKH GHWHUPLQDQWV RI FXOWXUDO SDWWHUQV DUH WR EH IRXQG LQ WKH REMHFWLYH UHODn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n WHP ZKLFK UHFHLYHV PDMRU HPSKDVLV LQ WKLV ZRUN YQ

PAGE 9

, DP QRW XQPLQGIXO RI WKH GHEW ZKLFK FXOWXUDO PDWHULDOLVP RZHV WR HDUOLHU WKLQNHUV LQ WKH VRFLDO DQG QDWXUDO VFLHQFHV 'DUZLQLDQ HYROXWLRQDU\ WKHRU\ LV EDVLF 7KH ZRUN RI /HVOLH :KLWH HVSHFLDOO\ LQ 7KH 6FLHQFH RI &XOWXUH f LQ VWDWLQJ WKH EDVLF IUDPHZRUN RI WKH VWXG\ RI FXOWXUH KDV LQIOXHQFHG PH JUHDWO\ +LV OD\HUFDNH PRGHO RI VRFLHW\ GHYLVHG IURP HDUOLHU PDWHULDOLVWV LQFOXGLQJ 0DU[ LQ ZKLFK WKH WHFKQRORJLFDO DQG HFRQRPLF EDVH VXSn SRUWV fOD\HUV RI VRFLDO RUJDQL]DWLRQ DQG LGHRORJ\ LV XVHIXO DQG LV LPSOLFLW LQ WKLV ZRUN 7KH ZRUN RI 5REHUW 0XUSK\ LQ 7KH 'LDOHFWLFV RI 6RFLDO /LIH f KDV JUHDWO\ FODULILHG IRU PH WKH UHODWLRQV EHWZHHQ WKH LGHRORJLFDO OD\HU DQG WKH OD\HU RI VRFLDO LQWHUDFWLRQ 0\ XVH RI WKH WHUP SUD[LV LQ WKH VHQVH RI WKH VRFLDO DQG HFRQRPLF LQWHUDFWLRQV RI KXPDQV SULRU WR WKHLU FRQFHSWLRQV RI WKRVH LQWHUDFWLRQV IROORZV 0XUSK\ 0DUVKDOO 6DKOLQVn ZRUN 6WRQH $JH (FRQRPLFV f KDV KHOSHG PH JUHDWO\ LQ RUJDQL]LQJ P\ WKRXJKWV DERXW WKH GRPHVWLF PRGH RI SURGXFn WLRQ DQ HFRQRPLF RUJDQL]DWLRQ ZKLFK LV IXQGDPHQWDO WR PDQ\ JURXSV RI 6RXWK $PHULFDQ WURSLFDO IRUHVW ,QGLDQV WKH &RFDPLOOD DPRQJ WKHP 6LQFH XVH WKH WHUPV PRGH RI SURGXFWLRQ DQG UHODWLRQV RI SURGXFWLRQ LQ WKLV ZRUN VHYHUDO WLPHV LW LV MXVW WKDW WKH GHEW WR 0DU[LDQ VRFLDO YLLL

PAGE 10

6FLHQFH EH PDGH PRUH H[SOLFLW LQ WKLV VHQVH 0DU[nV FRQFHSWLRQ RI PRGH RI SURGXFWLRQ LQFOXGHV WKH IXQGDPHQWDO UHODWLRQV EHWZHHQ SHRSOH HQJHQGHUHG E\ D GHWHUPLQHG ZD\ RI SURGXFLQJ WKH QHFHVVLWLHV RI OLIH DQG FRQVLGHUV WKH ZKROH LPSOLHG E\ WKH FRPSOH[ RI WKH SURGXFWLYH V\VWHP DQG WKH UHODWLRQV DQG FXOWXUDO SDWWHUQV QHFHVVDU\ WR FDUU\LQJ LW RQ 7KH PRGH RI SURGXFWLRQ LQ VKRUW LV D VRFLRn FXOWXUDO DQG HFRQRPLF V\VWHP DQG LQWHUDFWV ZLWK RWKHU V\VWHPV RI WKH VDPH FRQFHSWXDO RUGHU FI *RGHOLHU f 7KXV RQH PD\ VSHDN RI WKH FRQIOLFWV EHWZHHQ WKH &RFDPLOOD PRGH RI SURGXFWLRQ DQG D FDSLWDOLVW PRGH RI SURGXFWLRQ DQG EH XQGHUVWRRG WR PHDQ WKDW WKH FRQIOLFWV DUH RQ VHYHUDO OHYHOV HFRQRPLF VRFLDO DQG FXOWXUDO RU LGHRORJLFDO 0DU[nV ZRUN 3UH&DSLWDOLVW (FRQRPLF )RUPDn WLRQV f KDV EHHQ LQIOXHQWLDO LQ PDNLQJ PH WKLQN DERXW VXFK PDWWHUV ZLWK UHJDUG WR QDWLYH ,QGLDQ VRFLHWLHV ZRXOG OLNH WR WKDQN 'U &KDUOHV :DJOH\ IRU WKH PDWHULDO DLG LQWHOOHFWXDO JXLGDQFH DQG PRUDO HQFRXUDJHn PHQW ZKLFK PDGH LW SRVVLEOH WR FRPSOHWH WKLV ZRUN ,W LV GLIILFXOW WR LPDJLQH KDYLQJ FRPSOHWHG LW ZLWKRXW KLP 7KH ZDUP VXSSRUW KH SURYLGHV IRU KLV VWXGHQWV LV DSSUHFLDWHG PRUH WKDQ KH NQRZV 6SHFLDO WKDQNV DOVR JR WR WKH PHPEHUV RI P\ DFDGHPLF FRPPLWWHH 'UV 3DXO 'RXJKW\ ,;

PAGE 11

0D[LQH 0DUJROLV $QWKRQ\ 2OLYHU6PLWK DQG *ODXFLR 6RDUHV ZKR UHDG DQG FULWLFL]HG HDUOLHU YHUVLRQV RI WKH GLVVHUWDn WLRQ 1HHGOHVV WR VD\ ILQDO UHVSRQVLELOLW\ IRU FRQWHQW DQG LQWHUSUHWDWLRQ OLHV ZLWK PH $PRQJ P\ 3HUXYLDQ IULHQGV ZRXOG OLNH WR WKDQN $OHMDQGUR &DPLQR IRU KLV JUHDW DLG LQ VHFXULQJ LQVWLWXWLRQDO DIILOLDWLRQ LQ 3HUX DQG DOO RI W r WKH VWDII RI WKH &HQWUR $PD]QLFR GH $QWURSRORJD \ $SOLFDFLQ 3UDFWLFD &$$$3f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

PAGE 12

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

PAGE 13

7$%/( 2) &217(176 3DJH 35()$&( LY /,67 2) 7$%/(6 [YL /,67 2) ),*85(6 [YLLL /,67 2) 0$36 [L[ $%675$&7 [[ &+$37(5 ),(/':25. $021* 7+( &2&$0,//$ 1RWHV ,, :+2 $5( 7+( 1$7,9(6" 7RZDUG D 1HZ 0RGHO RI /RZODQGV 1DWLYH 6RFLHWLHV 7KH 3UREOHP RI (WKQLFLW\ ,,, 7+( 3+<6,&$/ (19,5210(17 2) 7+( &2&$0,//$ 3URWHLQV DQG 3RSXODWLRQV /DQG DQG :DWHU )HDWXUHV RI WKH 5LYHU 9DOOH\ /DQG DQG :DWHU )HDWXUHV RI WKH 8SODQG 3ODLQ 7KH /DUJHU 5HJLRQ ,9 7+( 35(+,6725< $1' $%25,*,1$/ &8/785( 2) 7+( &2&$0$ $1' &2&$0,//$ [LL

PAGE 14

7$%/( 2) &217(176 &RQWLQXHGf 3DJH 7KH $ERULJLQDO 6XEVLVWHQFH (FRQRP\ 6RFLDO 2UJDQL]DWLRQ $GRUQPHQW ,GHRORJ\ DQG &XVWRP 1RWHV 9 &217$&7f§7+( ),567 )257< <($56 6XPPDU\ 1RWHV 9, 7+( &2&$0,//$ $1' &2/21,$/ 0,66,21 /,)( 7KH 'HSDUWXUH RI WKH -HVXLWV 0LOLWDU\ 5XOH LQ 0DLQDV 6XPPDU\ 9,, 7+( &2&$0,//$ $1' 7+( 5(38%/,& ,'($/ $1' 5($/,7< 7KH 1DWLYH 5HVSRQVH WR ,QGHSHQGHQFH &RPSHWLWLRQ IRU ,QGLDQ /DERU +DFLHQGDV $SSHDU RQ WKH /RZHU +XDOODJD 7KH 5XEEHU %RRP 7KH %DUEDVFR
PAGE 15

7$%/( 2) &217(176 &RQWLQXHGf 3DJH /DQG DQG :DWHU 5LJKWV )LVKLQJ 5LJKWV RU 6WDUYDWLRQ 3UHVHQW 1XWULWLRQDO /HYHOV 6XPPDU\ 1RWHV ,; 62&,$/ 25*$1,=$7,21 7+( (*$/,7$5,$1 &20081,7< $1' 7+( $87+25,7$5,$1 67$7( 7KH 1DWXUH RI WKH (JDOLWDULDQ &RPPXQLW\f§&RFDPLOOD 6RFLDO 2UJDQL]DWLRQ 7KH &RPPXQLW\ DQG WKH 6WDWH 7KH 6FKRRO DV D 0RGHO RI WKH 6RFLDO (QYLURQPHQW RI $FKXDO 7LSLVKFD 6XPPDU\ ; &2&$0,//$ ,'(17,7< 3$77(516 7+( 1$7,9( $1' 7+( 67$7( ,GHQWLW\ DV 3HUXYLDQV 7KH &ODVV RI WKH $SHOOLGR +XPLOGH 7KH &RFDPLOOD DV &RFDPLOOD &RPPXQLW\ ,GHQWLILFDWLRQ 6KDPDQLVP DQG &RFDPLOOD ,GHQWLW\ 7KH )LHVWD 6\VWHP 2WKHU %RXQGDU\0DLQWDLQLQJ &XVWRPV 6XPPDU\ ;, $1$/<6,6 $1' &21&/86,216 7RGD\nV &RFDPLOOD 7KH )XWXUH RI WKH &RFDPLOOD $33(1',&(6 $33(1',; ,f§*/266$5< 2) )25(,*1 7(506 $33(1',; ,,3238/$7,21 &+$5$&7(5,67,&6 $&+8$/ 7,3,6+&$ $33(1',; ,,,f§/,67 ,1 63$1,6+ 2) )22'6 5(*8/$5/< &21680(' %< 7+( &2&$0,//$ [LY

PAGE 16

7$%/( 2) &217(176 &RQWLQXHGf 3DJH $33(1',; ,9f§&2&$0,//$ .,16+,3 7(506 $33(1',; 9f§+,6725,& &$7+2/,& )(67,9$/ &<&/( $6 35$&7,&(' %< 7+( &2&$0,//$ ,1 $&+8$/ 7,3,6+&$ '85,1* 7+( 7+ $1' 7+ &(1785,(6 %,%/,2*5$3+< %,2*5$3+,&$/ 6.(7&+ [Y

PAGE 17

/,67 2) 7$%/(6 7DEOH 3DJH &OLPDWRORJLFDO 'DWD IURP
PAGE 18

/,67 2) 7$%/(6 &RQWLQXHGf 7DEOH 3DJH ([SHQVHV RI *URZLQJ DQG 0DUNHWLQJ -XWH LQ $FKXDO 7LSLVKFD %DQN 'HEW LQ $FKXDO 7LSLVKFD 2YHU D 7KUHH
PAGE 19

/,67 2) ),*85(6 )LJXUH 3DJH *UDSK RI 7ZHQW\2QH
PAGE 20

/,67 2) 0$36 0DS 3DJH 6KRZLQJ 0RGHUQ 'D\ 'LVWULEXWLRQ RI 7XSLDQ ,QGLDQV LQ 3HUX LL 6KRZLQJ *HQHUDO 5HJLRQ RI 6WXG\ ZLWK /RFDWLRQV RI 6RPH 1DWLYH *URXSV DW &RQWDFW 6KRZLQJ WKH /LPLWV RI WKH 0DLQDV 0LVVLRQV 6KRZLQJ WKH (DUO\ 0DLQDV 0LVVLRQV 'LVFXVVHG LQ WKLV &KDSWHU 6KRZLQJ WKH /RFDWLRQ RI 3URPLQHQW 7RZQV LQ WKH /RZHU +XDOODJD 5HJLRQ LQ WKH WK DQG WK &HQWXULHV 6KRZLQJ 3DUW RI WKH /RZHU +XDOODJD 5LYHU 9DOOH\ DQG WKH /RFDWLRQ RI WKH 6WXG\ &RPPXQLW\ $FKXDO 7LSLVKFD [L[

PAGE 21

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n YLGHV WKH EDFNJURXQG IRU XQGHUVWDQGLQJ KRZ WKLV VLWXDWLRQ FDPH DERXW DV D UHVXOW RI KLVWRULFDO SURFHVVHV ,W LV DVVHUWHG ZLWK VXSSRUWLQJ HYLGHQFH WKDW WKH &RFDPLOOD DQG RWKHU 3HUXYLDQ QDWLYH ,QGLDQV LQ VLPLODU VWUXFWXUDO SRVLn WLRQV DFWXDOO\ IRUP D QDWLYH VRFLDO FODVV ZKLFK LV GLVn WLQJXLVKDEOH ERWK IURP WKH OHVVDFFXOWXUDWHG WULEDO ,QGLDQV DQG IURP WKH SRRU UXUDO ZKLWHPHVWL]RV ZKR IRUP WKH RWKHU FRPSRQHQW RI /RUHWR UXUDO VRFLHW\ 7KLV VRFLDO FODVV KDV [[

PAGE 22

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f DQG WKH EXUHDXFUDWLF KLHUDUFKLFDO DQG [[L

PAGE 23

KLJKO\ IRUPDO LQVWLWXWLRQV RI WKH VWDWH ZLWK ZKLFK WKH\ DUH LQ FRQVWDQW FRQWDFW UHFRPPHQGDWLRQV DUH PDGH IRU UHFRJQL]LQJ WKH &RFDPLOODnV ULJKW XQGHU 3HUXYLDQ ODZ DV QDWLYH ,QGLDQV 7KHVH ULJKWV PXVW LQFOXGH ULJKWV WR ERWK ODQG DQG ZDWHU UHVRXUFHV LQ RUGHU WR SHUPLW WKHP WR DGMXVW WR WKH GHYHORSLQJ /RUHWR VRFLHW\ RQ WHUPV ZKLFK LQFOXGH WKH SRVVLELOLW\ RI FXOWXUDO DQG HFRQRPLF VXUYLYDO DV DQ HWKQLF JURXS ;;,,

PAGE 24

&+$37(5 ),(/':25. $021* 7+( &2&$0,//$ W 7KH &RFDPLOOD DUH D JURXS RI DERXW QDWLYH $PHULn FDQ ,QGLDQV OLYLQJ LQ WKUHH PDMRU DQG D GR]HQ PLQRU FRPn PXQLWLHV ZKR VSHDN D ODQJXDJH FDOOHG &RFDPD D PHPEHU RI WKH 7XSL OLQJXLVWLF IDPLO\ 7KH\ DUH JHQHUDOO\ FRQVLGHUHG WR EH D VXEJURXS RI WKH &RFDPD 7KH &RFDPD QXPEHU DERXW SHRSOH DQG LQKDELW WKH ORZHU 8FD\DOL 5LYHU IORRG SODLQ LQ HDVWHUQ 3HUX IURP DERXW ODWLWXGH r 6RXWK WR WKH ULYHUnV PRXWK 7KH &RFDPLOOD LQKDELW WKH ORZHU +XDOODJD IORRGSODLQ IURP DERXW ODWLWXGH rn 6RXWK WR WKH PRXWK 7KHVH ZHUH WKH KLVWRULFDO OLPLWV RI WKHLU WHUULWRU\ EXW ERWK JURXSV KDYH H[SDQGHG FRQVLGHUDEO\ LQ UHFHQW WLPHV 7XSLDQ ,QGLDQV PD\ QRZ EH IRXQG DORQJ SDUWV RI WKH IORRGSODLQ RI WKH 0DUDHQ 8SSHU $PD]RQ 1DQD\ 3DVWD]D DQG ORYHU 1DSR ULYHUV WR QDPH EXW D IHZ 1HLWKHU JURXS KDV D ORQJ KLVWRU\ LQ 3HUX $UFKDHRORJLFDO HYLGHQFH LQGLFDWHV WKDW WKH 3HUXYLDQ 7XSLDQV LQFOXGLQJ WKH &RFDPLOOD DQG &RFDPD SUREDEO\ DUULYHG DV SDUW RI D KLVWRULFDO PLJUDWLRQ RI 7XSLDQ ,QGLDQV QRW PRUH WKDQ WZR

PAGE 25

RU WKUHH KXQGUHG \HDUV EHIRUH WKH FRQTXHVW 7KH\ ZHUH SDUW RI DQ H[SDQGLQJ SRSXODWLRQ DQG ZHUH UHSRUWHG WR KDYH EHHQ H[WUHPHO\ EHOOLFRVH LQ PDQ\ RI WKH HDUO\ KLVWRULFDO VRXUFHV ILUVW EHFDPH LQWHUHVWHG LQ WKH &RFDPLOOD ,QGLDQV DV EHFRPH LQWHUHVWHG LQ PRVW WKLQJV WKURXJK VOLJKW H[n SHULHQFH ZLWK WKHP ,Q ZDV WUDYHOLQJ GRZQ WKH 8FD\DOL 5LYHU LQ HDVWHUQ 3HUX RQ D GHFUHSLW ZRRGHQ SDVVHQn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

PAGE 26

RFFDVLRQDO ,QGLDQV PRVWO\ 6KLSLER &RQLER DQG IDUWKHU GRZQ &RFDPDf ZH VDZ OLYLQJ DORQJ WKH VKRUHV DQG SDGGOLQJ FDQRHV 7KH\ ZHUH DOO FDOOHG FKDPDV RU FKRORVA E\ WKH ERDWVPHQ ZLWKRXW GLVWLQFWLRQ DV WR WKHLU HWKQLF JURXS 6LQFH KDG EHHQ LQWHUHVWHG LQ WKH VRFDOOHG FKRORV LQ VRXWKHUQ 3HUX DQG VLQFH WKH SHRSOH FDOOHG FKRORV RQ WKH ULYHU KDUGO\ VHHPHG WR EH LQ WKH VDPH SRVLn WLRQV DV WKHLU KLJKODQGV FRXQWHUSDUW EHFDPH LQWHUHVWHG LQ WKHP ,Q UHWXUQHG WR 3HUX ZLWK P\ ZLIH KDYLQJ E\ WKHQ GHWHUPLQHG WR ZRUN LQ WKH WURSLFDO ORZODQGV DV P\ SURIHVVLRQDO DUHD VSHFLDOW\ LQ DQWKURSRORJ\ ,Q WKH FRXUVH RI PDNLQJ FRQWDFWV LQ WKH FDSLWDO /LPD ZH YLVLWHG WKH RIILFHV RI 6,1$026 1DWLRQDO 6RFLDO 0RELOL]DWLRQ 6XSSRUW 6\VWHPf WKH SROLWLFDORUJDQL]DWLRQDO DUP RI WKH PLOLWDU\ MXQWD 7KHUH ZH WDONHG WR $OEHUWR &KLULI WKH KHDG RI WKH VXSSRUW RIILFH IRU QDWLYH FRPPXQLWLHV +LV RIILFH ZDV LQ FKDUJH RI RUJDQL]LQJ $PD]RQ QDWLYH ,QGLDQV LQWR SROLWLFDO DQG MXULGLFDO HQWLWLHV FDOOHG QDWLYHA FRPPXQLWLHV VR WKDW WKH\ PLJKW UHFHLYH ODQG WLWOHV OHDUQ WR GHDO ZLWK EDQN ORDQV UHFHLYH LGHQWLW\ SDSHUV DQG LQ JHQHUDO GHIHQG WKHPVHOYHV DJDLQVW ZKLWH PHVWL]R WUDGHUV DQG SDWURQV $OO RI WKLV ZDV EHLQJ GRQH

PAGE 27

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n PHQ IUHTXHQWO\ FDOOHG ULEHUHRV LQ 3HUX DQG FDERFORV LQ %UD]LO $OWKRXJK QR RQH WDONHG WR LQ /LPD GXULQJ WKH

PAGE 28

PRQWK VWD\HG WKHUH DFWXDOO\ VDLG LW WKHUH VHHPHG WR EH DQ XQVWDWHG DVVXPSWLRQ WKDW LI ORZODQG WURSLFDO IRUHVW ,QGLDQV ZHUH QR ORQJHU WULEDO WKHQ WKH\ ZHUH QR ORQJHU ,QGLDQV DW DOO 7KLV XQYRLFHG DVVXPSWLRQ DFWXDOO\ EHFDPH YRLFHG ODWHU LQ WKH VXPPHU LQ WKH KHDUW RI KLVWRULF &RFDPD FRXQWU\ 5HTXHQD ZKHUH WKH ORFDO KHDG RI 6,1$026 WKH PDQ ZKR DORQJ ZLWK KLV RWKHU GXWLHV ZDV LQ FKDUJH RI RUJDQL]LQJ WKH QDWLYH FRPPXQLWLHV WROG PH WKDW WKH\ KDG QRW RUJDQL]HG DQ\ &RFDPD XQGHU ODZ EHFDXVH KH GLG QRW FRQVLGHU WKHP WR EH QDWLYHV 7KH\ DUH QRZ PRVWO\ FURVVHG ZLWK WKH PHVWL]RV KH VDLG +H VDZ KLV MRE ZLWK UHJDUG WR UHDO QDWLYHV DV KHOSLQJ WKHP WR UHYDOLGDWH WKHLU FXOn WXUDO SDWWHUQV 7KLV ZDV WDNHQ WR PHDQ JHWWLQJ WKHP WR SUHVHUYH WKHLU GDQFHV DQG IRONORUH 7KH &RFDPD DQG &RFDPLOOD KDG QR FRORUIXO GDQFHV DQG QR RQH KDG DVNHG WKHP DERXW WKHLU IRONORUH VLQFH 7KHLU YLOODJHV ORRNHG OLNH WKH IURQWLHUVPHQnV YLOODJHV VR PXFK VR WKDW WKH 5HTXHQD RIILFH ZDV QRW VXUH ZKHUH WKH\ FRXOG ILQG D &RFDPD YLOODJH 7KH &RFDPD WKH\ VDLG ZHUH WRR PL[HG ZLWK WKH UXUDO DJULFXOWXUDOLVWV DQG XUEDQ VOXP SHRSOH WR LGHQWLI\ 7KH RQO\ UHDVRQ IDLOHG WR EHFRPH SHUVXDGHG WKDW WKH &RFDPD DQG &RFDPLOOD KDG GLVDSSHDUHG DV HWKQLF JURXSV ZDV

PAGE 29

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

PAGE 30

RI ZKDW VRUW RI ODQGV PLJKW EH GHVLUDEOH IRU WKHP WR VHFXUH WLWOH WR D VWXG\ ZKLFK LPSOLHG D VWXG\ RI WKHLU VXEVLVWHQFH SDWWHUQV DQG QHHGV UHWXUQHG WR 3HUX LQ -XO\ RI IRU WKH ILHOG SRUn WLRQ RI WKH VWXG\ %\ WKHQ ZDV IDPLOLDU HQRXJK ZLWK WKH &RFDPLOOD VR WKDW QDLYHO\ DVVXPHG WKDW WKH\ ZHUH QRW VRFLDOO\ LQYLVLEOH WR WKH DXWKRULWLHV HYHQ LI WKH PRUH GLVSHUVHG &RFDPD VHHPHG WR EH VSHQW WKH QH[W QLQHWHHQ PRQWKV GLVDEXVLQJ P\VHOI RI WKDW LGHD DV WULHG WR FRQYLQFH WKH RIILFLDOV LQ WKH FORVHVW 6,1$026 RIILFH LQ
PAGE 31

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n VHQW EXW WKH\ ODFNHG WKH DFFHVV WR SROLWLFDO DQG HFRQRPLF SRZHU ZKLFK WKH ULEHUHR ZKLWHPHVWL]R IURQWLHUVn PHQ KDG $V OLYHG DPRQJ WKH &RFDPLOOD EHJDQ WR VHH WKDW WKH\ VWLOO IRUPHG D GLVWLQFW VRFLHW\ LQ ZKLFK XS WR b RI WKHP IRXQG PDUULDJH SDUWQHUV ZLWK RWKHU &RFDPLOOD ZDWFKHG WKHLU FXVWRPV GHSUHFDWHG E\ WKH ZKLWHPHVWL]R WHDFKHUV WKHLU ODNHV YLRODWHG E\ FRPPHUFLDO ILVKHUPHQ DQG WKHLU GDXJKWHUV JR DZD\ WR QHDU ERQGDJH DV VHUYDQWV LQ XUEDQ FHQWHUV ,Q VXFK FLUFXPVWDQFHV RWKHUV KDYH VSRNHQ RI HWKQRFLGH ZLVK LW ZDUH WKDW VLPSOH %XW DW WLPHV WKHUH DOPRVW VHHPHG WR EH DQ HOHPHQW RI PDOHYRODQW

PAGE 32

FRQVSLUDF\ LQ WKH ZD\ WKH HQWLUH 3HUXYLDQ VRFLHW\ LQ FRQn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n RP\ QRW DV SHRQV DQ\ ORQJHU EXW DV LQGHSHQGHQW VPDOO SURGXFHUV $ JHQHUDWLRQ JDS KDG DSSHDUHG DV WKH \RXQJHU PHPEHUV RI WKH FRPPXQLW\ WULHG WR GHDO ZLWK QHZ GHYHORSPHQWV LQ WKHLU OLIHSODQV 7KH &RFDPLOOD ZHUH QR ORQJHU WULEDO ,QGLDQV LQ DQ\ VHQVH RI WKH WHUP EXW QHLWKHU ZHUH WKH\ ZKLWHPHVWL]RV HLWKHU DV D VRFLHW\ RU DV D FXOWXUH

PAGE 33

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n VLGHUDWLRQ ,W ZLOO EH D YHU\ GLIIHUHQW ZRUN LQ VKRUW WKDQ LW VWDUWHG RXW WR EH 7KH HFRORJLFDO DQG KLVWRULFDO GDWD DUH PDGH WR VHUYH DQ DUJXPHQW ZKLFK LV SROLWLFDOO\

PAGE 34

ELDVHG LQ IDYRU RI WKH &RFDPLOOD WKLQN LW PXVW EH WKDW ZD\ LI DP WR ZULWH LW DW DOO $ ZRUG DERXW PHWKRG 7KHUH DUH WKUHH D[HV RI GDWD FROOHFWLRQ LQWHJUDWHG LQ WKLV ZRUN 7KH ILUVW LV KLVn WRULFDO WKH VHFRQG HFRORJLFDO DQG WKH WKLUG HWKQRJUDSKLF ,Q WHUPV RI KLVWRU\ ZDV LQWHUHVWHG LQ WKH SDVW RI RQH VSHFLILF HWKQROLQJXLVWLF JURXS WKH &RFDPLOOD 7RZDUGV WKDW HQG VWXGLHG DOO DYDLODEOH GRFXPHQWV LQ WKH FRPPXQLW\ LQ ZKLFK OLYHG ,Q /DJXQDV FRQVXOWHG DOO WKH GRFXn PHQWV LQ WKH &DWKROLF PLVVLRQ DQG LQ WKH PHDJUH SXEOLF DUFKLYHV DYDLODEOH ,Q
PAGE 35

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n KROG PHPEHU ZHUH UHFRUGHG DQG ODWHU JLYHQ D FODVVLILFDWLRQ QXPEHU WKH ILUVW WKUHH GLJLWV RI ZKLFK DUH EDVHG RQ WKH 2XWOLQH RI &XOWXUDO 0DWHULDOV 0XUGRFN HW DO f DQG WKH ODVW WZR GLJLWV EDVHG RQ WKH DFWLYLWLHV VSHFLILF WR WKH &RFDPLOOD FXOWXUH 7KLV PDWHULDO ZDV FROOHFWHG VSHFLILFDOO\ VR DV WR EH DQDO\]HG E\ FRPSXWHU 7KLV PHWKRG ZDV VXJJHVWHG E\ -RKQVRQ f 2YHU WKH FRXUVH RI D \HDU RYHU REVHUYDWLRQV ZHUH DFFXPXODWHG 0RUH VSHFLILF GDWD RQ DJULFXOWXUH KXQWLQJ DQG ILVKn LQJ ZHUH FROOHFWHG E\ WKH XVH RI WKUHH NH\ LQIRUPDQWV (DFK RI WKHVH LQIRUPDQWV ZDV FDUHIXOO\ VHOHFWHG DV WR UHOLDELOLW\ DQG UHSUHVHQWDWLYLW\ DIWHU ILYH PRQWKV

PAGE 36

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n WKLQJ WKDW IDPLO\ PHPEHUV DWH 7KLV ZDV DV PXFK RI D

PAGE 37

EXUGHQ RQ WKH &RFDPLOOD DV LW ZDV GLIILFXOW IRU XV 6LQFH WKH IDPLOLHV IUHTXHQWO\ HDW IURP FRPPRQ GLVKHV ZH ZHLJKHG ZKDW ZHQW LQWR WKH SRWV DQG WRRN QRWHV RQ ZKDW ZDV LQGLYLn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n KHQG WKHLU VRFLDO RUJDQL]DWLRQ ZLWK VRPH VRUW RI WLPH GHSWK :7H FROOHFWHG FHQVXV GDWD DQG WULHG WR EH V\VWHPDWLF DERXW H[SORULQJ WKHLU VRFLDO ZRUOG :H WRRN

PAGE 38

H[WHQVLYH QRWHV RQ ZKDW ZH VDZ DQG KHDUG DQG FODVVLILHG WKH QRWHV DORQJ VWDQGDUG HWKQRJUDSKLF FDWHJRULHV IRU SXUSRVHV RI DQDO\VLV FDQQRW VD\ WKDW ZH FDPH WR WKLQN DV WKH &RFDPLOOD WKLQNf§, KDYH WRR PXFK UHVSHFW IRU WKH SRZHU RI RQHnV RZQ VRFLRFXOWXUDO V\VWHP LQ IRUPLQJ SHUVRQDOLW\ DQG FRJQLWLYH FDWHJRULHV WR EHOLHYH WKDW ZH FRXOG HYHU WKLQN OLNH WKH &RFDPLOOD EXW ZH GLG FRPH WR XQGHUVWDQG VRPH RI WKH UHDVRQV ZK\ WKH &RFDPLOOD EHKDYH DV WKH\ GR DQG DW WLPHV IHOW YHU\ FORVH WR WKHP LQGHHG

PAGE 39

1RWHV n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

PAGE 40

&+$37(5 ,, :+2 $5( 7+( 1$7,9(6" 7KH 3HUXYLDQ V\VWHP RI VWUDWLILFDWLRQ ZKHWKHU LQ WKH FRORQLDO UHSXEOLFDQ RU FRQWHPSRUDU\ SHULRGV KDV QHYHU PDGH XVH RI D VWULFWO\ ELQDU\ RSSRVLWLRQ EHWZHHQ ,QGLDQ DQG QRQ,QGLDQ %XW QHLWKHU KDV LW EHHQ FKDUDFWHUL]HG E\ D SOXUDOLVP RI MX[WDSRVHG JURXSVWKDW LV DW RQFH LVRODWHG IURP HDFK RWKHU \HW DOO IRUPLQJ SDUW RI WKH VDPH HFRQRPLF VSDFH DQG VXEMHFW WR WKH VDPH OHJDO V\Vn WHP DV IRU H[DPSOH LV WKH FDVH ZLWK WKH -HZV ,WDOLDQV DQG 3XHUWR 5LFDQV RI 1HZ
PAGE 41

IRU KLJKODQG DQG FRDVWDO 3HUX 7KH ODQG WHQXUH V\VWHP ZKLFK KHDYLO\ LQIOXHQFHG WKH UHODWLRQV EHWZHHQ 6SDQLVK DQG ,QGLDQV LQ WKH KLJKODQGV RI DOO WKH $QGHDQ FRXQWULHV GLG QRW DSSO\ 3UREDEO\ IRU WKH DERYH UHDVRQV WKH ORZODQG WURSLFDO IRUHVW UHJLRQ KDV XQWLO YHU\ UHFHQWO\ EHHQ H[FOXGHG IURP FRQVLGHUDWLRQ LQ GLVFXVVLRQV RI VRFLDO VWUDWLILFDWLRQ LQ 3HUX XVXDOO\ RQ WKH EDVLV WKDW LW LV VSDUVHO\ SRSXODWHG /DUVRQ DQG %HUJPDQ f LI LW LV PHQWLRQHG DW DOO 0RUH IUHTXHQWO\ LW LV QRW PHQWLRQHG $FWXDOO\ ZLWK D SRSXODWLRQ RI FORVH WR SHRSOH WKH PRQWDD DFFRXQWV IRU RYHU b RI 3HUXnV WRWDO SRSXODWLRQ KDUGO\ D QHJOLJLEOH QXPEHU ,W LV RQO\ WKH IDFW WKDW WKLV SRSXODWLRQ LV VSUHDG RYHU WKH b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

PAGE 42

GLIIHUHQW KLVWRULHV WKH $PD]RQ EDVLQ LQ JHQHUDO FDQQRW EH WKRXJKW RI DV D VRFLDO XQLW LQ DQ\ VHQVH 3HUX IRU H[DPSOH EHFDPH D UHIXJH DUHD IRU DW OHDVW IRXU ODUJH JURXSV RI ULYHULQH 7XSLDQ ,QGLDQV EHWZHHQ DQG %ROODHUW (GPXQVRQ 9DVTXH] f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

PAGE 43

RI FDSWLYH ,QGLDQ SRSXODWLRQV 9DOFDUFHO 6LQJOHWRQ *DWHV f %XW E\ WKLV WLPH %UD]LO KDG IHZ HDVLO\ DFFHVVLEOH QDWLYH ,QGLDQV OHIW DQG LW LV V\PSWRPDWLF RI WKH UHODWLYHO\ PRUH QXPHURXV 3HUXYLDQ ,QGLDQ SRSXODWLRQ WKDW PRVW RI WKH LQIDPRXV FRUUHULDV ,QGLDQ URXQGXSVf RI WKLV SHULRG WRRN SODFH LQ 3HUX 7RGD\ WKH UHVXOWV RI WKH YHU\ GLIIHUHQW KLVWRU\ RI WKH 3HUXYLDQ $PD]RQ DQG WKDW RI %UD]LO LV VWDUNO\ VXJJHVWHG E\ VLPSO\ SRSXODWLRQ ILJXUHV %UD]LO KDV DSSUR[LPDWHO\ QDWLYH ,QGLDQV LQ WKH HQWLUH FRXQWU\ 6XS\V£XD f ZKLOH 3HUX KDV DSSUR[LPDWHO\ 8ULDUWH f LQ WKH $PD]RQ UHJLRQ DORQH ,W PXVW EH HPSKDVL]HG WKDW WKH VLWXDWLRQ GHVFULEHG DERYH LV QRW GXH WR SUHFRQTXHVW SRSXODWLRQ GLIIHUHQFHV %\ DOO DFFRXQWV WKH %UD]LOLDQ $PD]RQ 5LYHU YDOOH\ DQG LWV WULEXWDULHV ZHUH PRUH GHQVHO\ SRSXODWHG WKDQ DQ\ SDUW RI WKH 3HUXYLDQ $PD]RQ 0HGLQD $FXD f 5DWKHU LW LV GXH WR DQ DFFLGHQW RI JHRSROLWLFV ZKLFK JDYH D ODUJH UHJLRQ RI WKH $PD]RQ EDVLQ WR 3HUX D FRXQWU\ ZKLFK FRXOG QRW HIILFLHQWO\ GRPLQDWH RU H[SORLW LW 7KH $QGHDQ PRXQWDLQV ZHUH WKH EDUULHU DQG /LPD WKH FDSLWDO RI 3HUX ZDV RQ WKH FRDVW ,Q EHWZHHQ ZHUH XS WR VL[ PLOOLRQ 4XHFKXD DQG $\PDUD ,QGLDQ SHDVDQWV ZKR SURYLGHG

PAGE 44

DW RQFH ODERU IRU WKH QHZ FRORQ\ DQG D PDQDJHPHQW SUREOHP ZKLFK KDV RFFXSLHG DQG SODJXHG WKH GRPLQDQW EXW PLQRULW\ ZKLWHPHVWL]R VRFLHW\ HYHU VLQFH WKH FRQTXHVW
PAGE 45

WKURXJK VWUDQJHO\ WLQWHG OHQVHV 'LVDJUHHPHQWV DERXW WKH QDWXUH RI HDVWHUQ 3HUXYLDQ VRFLHW\ XVXDOO\ UHYROYHG DERXW UDFLDO FDWHJRULHV :LOKHLP 6LHYHUVn ZHOONQRZQ 3HUXYLDQ DQG %ROLYLDQ JHRJUDSK\ 6LHYHUV f GLYLGHG 3HUX DV GR PRVW JHRJUDSKHUV LQWR WKUHH UHJLRQV WKH VLHUUD WKH FRDVW DQG WKH PRQWDQD +LV HVWLPDWH RI WKH SRSXODWLRQ RI /RUHWR WKHQ LQ GLVSXWH ZLWK (FXDGRUf ZDV SHRSOH :LHVVH f KDG FRPSXWHG HDUOLHU WKDW URXJKO\ RQHKDOI RI WKHVH ZHUH ,QGLDQV ZKLOH b ZHUH ZKLWH RU PL[HG 6LHYHUV GLVDJUHHG DQG HVWLPDWHG WKDW b ZHUH PL[HG EORRGV :KDW DOO RI WKLV PHDQW LQ VRFLRFXOWXUDO WHUPV LV GLIILFXOW WR IDWKRP 6DHQ] KDG WKLV WR VD\ 7KH SRSXODWLRQ RI HDVWHUQ 3HUXB DSDUW IURP WKH VPDOO JURXSV RI PHVWL]RV DQG PHVWL]REODQFRV LV IRUPHG E\ WKH -LYDURV WKH &KXQFKRV DQG RWKHU WULEHV 7KH\ VSHDN D JUHDW YDULHW\ RI ODQJXDJHV IURP WKH SULPLWLYH LQMHLQMH WR RWKHUV PRUH GHYHORSHG VXFK DV DJXDUXQDFDPSD 0RVW RI WKHVH SHRSOH OLYH IURP KXQWLQJ DQG ILVKLQJ DQG OHDG D QRPDGLF OLIH DOWKRXJK VRPH KDYH LQLWLDWHG WKH DJULFXOWXUDO VWHS IRU WKH\ DUH GHGLFDWHG WR WKH FXOWLYDWLRQ RI VPDOO ILHOGV RQ WKH ULYHUEDQNV 6DHQ] WUDQVn ODWLRQ PLQHf 7KDW YLHZV VXFK DV WKHVH ZHUH H[WUHPHO\ XQVRSKLVWLFDWHG KDUGO\ QHHGV WR EH SRLQWHG RXW ,Q IDFW HDUOLHU DFFRXQWV

PAGE 46

ZHUH PXFK PRUH VRSKLVWLFDWHG ,Q D KXQGUHG DQG IRUW\ \HDUV EHIRUH )U 0DQXDO 6REUHYLHOD WKH G\QDPLF )UDQVFLVFDQ JXDUGLDQ RI 6DQWD 5RVD GH 2FRSD KDG YLVLWHG WKH ORZHU +XDOODJD 5LYHU UHJLRQ $ULVWLR f +LV PDS FOHDUO\ UHFRJQL]HG WKH GLVWLQFWLRQ EHWZHHQ WKH IDLWKIXO &KULVWLDQ ,QGLDQV ILHOHV RU DOPDVf DQG WKH QRQ&KULVWLDQ ,QGLDQV LQILHOHV RU VDYDJHVf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f ZHUH HYHQ PRUH VRSKLVWLFDWHG DERXW WKH PRQWDQD VRFLHW\ SHUKDSV EHFDXVH WKH VRFLHW\ LWVHOI ZDV EHFRPLQJ PRUH FRPSOH[ WKDQ D VLPSOH ,QGLDQ:KLWH GLVWLQFWLRQ ZRXOG LQGLFDWH ,Q +HUQGRQnV DFFRXQWV RI WKH ORZHU +XDOODJD KH

PAGE 47

GLVWLQJXLVKHG EHWZHHQ IUHH IRUHVW ,QGLDQV ZKR ZHUH FDSWXUHG DQG VROG DV VODYHV WR 7DUDSRWR UHVLGHQWV SHDVn DQW IDUPHUV ZLWKRXW HWKQLF ODEHO DSSDUHQWO\ WKH FRPn SOHWHO\ DVVLPLODWHG UHPDLQV RI IRUPHU WULEHV VXFK DV WKH
PAGE 48

FROOHFWHG GDWD EH\RQG WKH EDUH PHQWLRQ WKDW PRVW RI WKHP ZHUH ZRUNLQJ IRU UXEEHU SDWURQV )DUDEHH 6, f (YHQ WKH WHUULEOH VFDQGDOV RI WKH 3XWXPD\R FI &RQJUHVV 6LQJOHWRQ*DWHV 9DOFDUFHO f VHHPHG WR VWLPXODWH QR LQWHUHVW DPRQJ DQWKURSRORJLVWV WR GR DQ\WKLQJ H[FHSW WR KDVWHQ WR VDOYDJH ZKDW FXOWXUDO GDWD WKH\ FRXOG EHIRUH DERULJLQDO FXOWXUHV ZHUH FRPSOHWHO\ GHVWUR\HG 7HVVPDQnV f WUHDWLVH RQ HDVWHUQ 3HUXYLDQ ,QGLDQV JLYHV EXW IHZ KLQWV DERXW WKH UHDO FRQGLn WLRQV RI WKHLU H[LVWHQFH DQG OD\V JUHDW VWUHVV RQ SXUH VFLHQWLILF GDWD 6WXGLHV LQ WKH DFFXOWXUDWLRQ JHQUH ZHUH QRW GRQH LQ WKH UHJLRQ XQWLO UHFHQWO\ $QWKURSRORJLVWV LQ VKRUW ZRUUHG D JUHDW GHDO PRUH DERXW WKH SURYHQLHQFH RI FXOWXUH WUDLWV WKDQ WKH\ GLG DERXW VODYHU\ 7KH QHW HIIHFW RI VXFK ZULWLQJ E\ HWKQRJUDSKHUV EHn IRUH ZDV WR JLYH WKH LPSUHVVLRQ TXLWH IDOVHO\ RI DQ XSSHU $PD]RQ %DVLQ IXOO RI ZLOG ,QGLDQ WULEHV ZKR ZHUH MXVW FRPLQJ LQWR FRQWDFW ZLWK WUDGHUV DQG VFLHQWLVWV (YHQ (VSLQRVDnV PRQRJUDSK RQ WKH 7XSLDQ ,QGLDQV LQFOXGLQJ WKH &RFDPLOOD WKH FODVVLF ILHOHV ,QGLDQV ZKR KDG EHHQ OLYLQJ LQ RU FORVHO\ FRQQHFWHG ZLWK PLVVLRQV IRU QHDUO\ \HDUV DW WKH WLPHf PHQWLRQHG PHUHO\ WKDW WKH\ ZHUH GRPLQDWHG E\ SDWURQV DQG GHVFULEHG WKHLU LGHDO FXOWXUH

PAGE 49

SDWWHUQV ZLWKRXW IXUWKHU UHIHUHQFH WR WKHLU VRFLRSROLWLFDO HQYLURQPHQW (VSLQFIH f 2QH PD\ DUJXH WKDW WKH HWKQRJUDSKHUV RI WKH WLPH ZHUH PHUHO\ IXOILOOLQJ WKH GHPDQGV RI WKHLU SURIHVVLRQ ,W LV QRW DIWHU DOO WKH MRE RI DQ LFWK\RORJLVW WR EH FRQn FHUQHG ZLWK ELUGV QRU RI WKH PHGLFDO GRFWRU WR DQDO\]H VRFLDO VWUXFWXUH :KLOH WKLV PD\ EH WUXH LW FDQQRW EH VHULRXVO\ PDLQWDLQHG WKDW FRQWHPSRUDU\ VRFLRSROLWLFDO HQYLURQPHQWV KDYH VR OLWWOH WR GR ZLWK HWKQRJUDSK\ HYHQ LI WKH JRDO RI WKH HWKQRJUDSKHU LV RQO\ KLVWRULFDO UHFRQn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f KDV QRWHG D FKDQJH LQ WKH WK FHQWXU\ FRQVLGHUDWLRQ RI WKH ,QGLDQ DV SDJDQ ZKR PXVW EH FKULVWLDQL]HG WR WKH

PAGE 50

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f %XW QHLWKHU WKH WK FHQWXU\ QRU RXU RZQ HUD KDV EHHQ IUHH RI PLVVLRQL]LQJ HIIRUWV DQG WKH -HVXLW HUD ZDV KDUGO\ IUHH RI HQFRPLHQGDV H[WUDFWLRQ WUDGLQJ DQG VODYLQJ VRPHWLPHV DLGHG DQG DEHWWHG E\ WKH SULHVWV WKHPn VHOYHV 7KH H[SXOVLRQ RI WKH -HVXLWV DQG WKHLU UHSODFHn PHQW E\ D VHULHV RI VHFXODU DQG )UDQFLVFDQ SULHVWV LQ WKH ODWH WK FHQWXU\ 0DLQDV PLVVLRQV PHUHO\ UHIOHFWHG

PAGE 51

D UHODWLYH VKLIW LQ WKH SRZHU VWUXFWXUH RI WKH WURSLFDO IRUHVW UHJLRQV ,W WLSSHG WKH EDODQFH LQ IDYRU RI PRUH GLUHFW VHFXODU GRPLQDWLRQ RI WKH ,QGLDQV E\ WKH ZKLWH PHVWL]R PLQRULW\ RI WUDGHUV DQG ODQGRZQHUV 7KXV WKH LPDJH RI D KDOF\RQ -HVXLW SHULRG GXULQJ ZKLFK WKH ,QGLDQV ZHUH PHUHO\ SURWHFWHG DQG LQVWUXFWHG LQ UHOLJLRXV PDWWHUV PXVW JLYH ZD\ WR D PRUH UHDOLVWLF DVVHVVPHQW RI WKH ORQJn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nV UHSRUW WR WKH %ULWLVK JRYHUQn PHQW RQ WKH UXEEHU FDPSV 6LQJOHWRQ*DWHV f WKH FRQJUHVVLRQDO UHSRUW RQ VODYHU\ LQ 3HUX &RQJUHVV f DQG +DUU\ +R\nV f GHVFULSWLRQ RI WKH 3HUXYLDQ ORJJLQJ

PAGE 52

LQGXVWU\ ZHUH SUHJQDQW ZLWK LPSOLFDWLRQV RI WKH OLQNV EHWZHHQ WKH DOOHJHGO\ VHSDUDWH VHFWRUV DQG FRPSOH[ VWUDWLILFDWLRQV RI ORFDO VRFLHW\ EDVHG RQ DFFHVV WR FUHGLW 7KH 3HUXYLDQ FHQVXV UHIOHFWV WKH ODFN RI GHWDLOHG NQRZOHGJH RI WKH VRFLHW\ RI WKH UHJLRQ 7KH FHQVXV UHSRUWHG WKDW DW OHDVW SHRSOH OLYHG LQ /RUHWR EXW RQO\ b RI WKHP ZHUH DFWXDOO\ FRXQWHG &HQVR f 7KH RWKHU b ZHUH RQO\ HVWLPDWHG 7KH VRFLDO UDFLDO FODVVLILFDWLRQV ZHUH :KLWH0HVWL]R ,QGLDQ %ODFN DQG
PAGE 53

WURSLFDO IRUHVW UHJLRQ +LV ZRUN LV WKH ILUVW VHULRXV DWWHPSW WR XQGHUVWDQG WKH FRQWHPSRUDU\ VRFLDO UHDOLW\ RI WKH 3HUXYLDQ WURSLFDO IRUHVW ,QGLDQV $ PDMRU WKHRUHWLFDO EDVH IRU KLV DQDO\VLV ZDV WKH SUHPLVH WKDW WKH DQDO\VLV RI WKH SROLWLFDO DQG HFRQRPLF SRVLWLRQ RI WULEDO PLQRULWLHV ZDV LQVHSDUDEOH IURP WKH DQDO\VLV RI WKH HQWLUH VXUURXQGn LQJ VRFLHW\ 7KLV ZDV WUXH EHFDXVH WKH HPSLULFDO FRQn GLWLRQV IRU DOO DVSHFWV RI WKHLU H[LVWHQFH LV LPSRVHG E\ WKH GRPLQDQW VRFLHW\ 1RU FDQ DQ DQDO\VLV RI WKHLU SRVLWLRQ EH PDGH ZLWKRXW WDNLQJ LQWR FRQVLGHUDWLRQ WKH LQWHUQDWLRQDO HFRQRPLF DQG SROLWLFDO HQYLURQPHQW LQ ZKLFK WKH 3HUXYLDQ QDWLRQDO VRFLHW\ H[LVWV 9DUHVH f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

PAGE 54

ZKLWHPHVWL]R VRFLHW\ LV WKH PRVW EDVLF HOHPHQW RI WKH VRFLDO UHDOLW\ RI WKH WURSLFDO IRUHVW UHJLRQ 9DUHVHnV VFKHPD DGPLWWHGO\ SUHOLPLQDU\ IRU WKH VRFLRORJ\ RI WKH ORZODQG WURSLFDO IRUHVW UHJLRQ LQYROYHG VHWWLQJ XS D SRODULW\ EHWZHHQ WKH QDWLYH VRFLHWLHV DQG WKH ZKLWH VRFLHW\ ZKLFK KDYH FDOOHG ZKLWHPHVWL]R 1DWLYH VRFLHWLHV DUH GHILQHG E\ 9£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n WLRQ DQG SRZHU 9£QHVH SUHVHQWV DQ DQDO\VLV RI VHOYDWLF VRFLHW\ EDVHG RQ RFFXSDWLRQ DQG UHODWLYH SRZHU :KLWH VRFLHW\ LV GLYLGHG LQWR WKUHH FDWHJRULHV &DWHJRU\ RQH LV DQ XUEDQ EDVHG FRPPHUFLDO VHFWRU DQG LQFOXGHV ODUJH ODQG RZQHUV RU DGPLQLVWUDWRUV &DWHJRU\ WZR LV D UXUDO

PAGE 55

PL[HG JURXS RI VPDOO IDUPHUV DQG FRPPHUFLDO WUDGHUV DQG RXWILWWHUV 9DUHVH FDOOV WKHVH JURXSV LQWHUPHGLDULHV IURP WKH QDWLYH YLHZSRLQW &DWHJRU\ WKUHH LQFOXGHV WKH QRQFRPPHUFLDO QHWZRUN RI JRYHUQPHQW RIILFLDOV PLOLWDU\ SROLFH DQG PLVVLRQDULHV ZKRP 9DUHVH FDOOV WKH FRPPXQLFDn WRUV RI ZKLWH VRFLHW\ 7KLV JURXS LV HVSHFLDOO\ FKDUDFn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£ YLV WKH ZKLWHPHVWL]R VHFWRUV 7KH QDWLYH SRSXODWLRQV DORQJ WKH QDYLJDEOH ULYHUV WHQG WR EH GLVLQWHJUDWHG DQG DWRPL]HG E\ WKH GHPDQG IRU ODERU RQ WKH SDUW RI WKH H[WUDFWLYH HFRQRP\ ZKLOH WQH KLJKODQG IRUHVW FRPPXQLWLHV WHQG WR FRKHUH DQG FRQVROLGDWH DURXQG WKHLU WHUULWRU\ 9DUHVH f

PAGE 56

7KH XQLWV RI 9DUHVHnV DQDO\VLV RI WKH QDWLYH VHFWRU DUH f HWKQROLQJXLVWLF JURXSV GLYLGHG LQWR Df KLJKODQG IRUHVW DQG Ef ORZODQG IRUHVW UHJLRQV RQ WKH EDVLV WKDW WKH WZR UHJLRQV KDYH EHHQ FKDUDFWHUL]HG E\ WZR GLVWLQFW VRUWV RI IURQWLHUV GHPRJUDSKLF FRORQLVWV ZKR RFFXS\ ODQGf LQ WKH FDVH RI WKH KLJKODQG IRUHVW JURXSV DQG HFRQRPLF H[WUDFWLYH LQGXVWULHV IRU WKH PRVW SDUWf LQ WKH FDVH RI WKH ORZODQG IRUHVW JURXSV (WKQROLQJXLVWLF JURXSV DUH IXUWKHU GLYLGHG LQWR QDWLYH FRPPXQLWLHV ZKLFK DUH RSHUDWLRQDOO\ GHILQHG DV IROORZV 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f 'HWULEDOL]DWLRQ WKURXJK

PAGE 57

D SURFHVV RI SUROHWDUL]DWLRQ DQG HWKQLF GLVLQWHJUDWLRQ RU GLVVROXWLRQ ,ELG f EXW LQ PRVW FDVHV ZLWK WKH UHWHQWLRQ RI ODQG IRU WKRVH ZKR UHPDLQ LQ WKH UXUDO DUHDV f 5HWUHDW WR UHPRWH DUHDV WR DYRLG FRQWDFW 7RZDUG D 1HZ 0RGHO RI /RZODQGV 1DWLYH 6RFLHWLHV 7R DUULYH DW DQ XQGHUVWDQGLQJ RI WKH FXUUHQW VRFLRORJ\ RI QDWLYH JURXSV LQ WKH ORZODQG IRUHVW LW LV QHFHVVDU\ WR UHYLVH VRPH RI 9DUHVHnV FRQFHSWV 7KLV VKRXOG EH GRQH ILUVW E\ H[DPLQLQJ KLV XQLWV RI DQDO\VLV 7KH WHUP HWKQROLQJXLVWLF JURXS LV WURXEOHVRPH ,W PDNHV DQ DVVXPSWLRQ ZKLFK LV GLIILFXOW WR VXSSRUW 7KDW DVVXPSWLRQ LV WKDW ODQJXDJH LV VRPHKRZ QHFHVVDULO\ UHODWHG WR HWKQLFLW\ $V %DUWK f KDV VKRZQ HWKQLFLW\ PD\ EH GHILQHG IRU VRPH SXUSRVHVf DV WKH PDLQWHQDQFH RI ERXQn GDULHV EHWZHHQ VRFLDO JURXSV RYHU WLPH E\ PHDQV RI FXOn WXUDO GLIIHUHQFHV :KLOH ODQJXDJH LV XVXDOO\ RQH RI WKRVH FXOWXUDO GLIIHUHQFHV WKHUH LV QR D SULRUL ZD\ RI GHWHUPLQLQJ WKDW LW PXVW EH 7KH IRFXV RQ ODQJXDJH OHDGV WR GLVFXVVLRQV RI D QDWLYH JURXS ZKLFK PD\ YDU\ ZLGHO\ LQWHUQDOO\ LQ VRFLDO RUJDQL]DWLRQ UHVSRQVHV WR ORFDO SUHVVXUHV DQG GHJUHH RI VHOILGHQWLW\ DV QDWLYHV DV LI

PAGE 58

LW ZHUH D KRPRJHQHRXV VRFLDO XQLW ,Q RWKHU ZRUGV QRQ OLQJXLVWLF IDFWRUV PD\ EH PXFK PRUH LPSRUWDQW WKDQ OLQn JXLVWLF IDFWRUV LQ GHWHUPLQLQJ WKH QDWXUH RI D JLYHQ JURXSnV DGMXVWPHQW WR ZKLWHPHVWL]R VRFLHW\ $ IRFXV RQ OLQJXLVWLF IDFWRUV DOVR GLYHUWV DWWHQWLRQ IURP QDWLYH JURXSV ZKLFK PDLQWDLQ HWKQLF ERXQGDULHV RU DV LQ WKH FDVH RI WKH &RFDPLOOD DQG PRVW RWKHU PHPEHUV RI WKH FKRODGD KDYH WKHP LPSRVHGf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

PAGE 59

DQG ZDJH ZRUNHUV 1HYHUWKHOHVV WKH IRFXV RQ ODQJXDJH KDV PHDQW WKDW WKH\ KDYH QR SURWHFWLRQ IRU WKHLU FRPPXQDO ODQGV HYHQ WRGD\ DQG WKHLU ILVKSURWHLQ EDVH LV EHLQJ FRQVWDQWO\ GLPLQLVKHG E\ ZKLWHPHVWL]R FRPPHUFLDO ILVKHUn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f DQG WKH FRQn FHSW RI JURXS *URXSV DUH HDVLHU WR GHDO ZLWK 1DWLYH VRFLHW\ LQ WKH XSSHU $PD]RQ KDV LWV ORFXV LQ WKH XQLW RI WKH H[WHQGHG IDPLO\ EURDGO\ GHILQHGf ERWK WRGD\ DQG LQ WKH SDVW 1XPEHUV RI H[WHQGHG IDPLOLHV PD\ IRUP QXFOHDWHG VHWWOHPHQWV RI LQGLYLGXDO KRXVHV QXFOHDWHG VHWWOHPHQWV RI RQH ODUJH KRXVH RU PRUH GLVSHUVHG QHLJKERUKRRGV 7KH QXFOHDWHG VHWWOHPHQWV RU QHLJKERUKRRGV WHQG WR LQWHUDFW VRFLDOO\ DURXQG FXOWXUDO LQVWLWXWLRQV ZKLFK XVXDOO\ WDNH WKH IRUP RI RQH RU PRUH LQWHJUDWLYH ULWXDOV WKURXJKRXW WKH \HDU

PAGE 60

7KH ILHOG RI UHJXODU LQWHUSHUVRQDO LQWHUDFWLRQ RYHU WKH \HDUO\ F\FOH LV FRQFHLYHG E\ WKH QDWLYH DV FRQVWLWXWLQJ D VRFLDO XQLW ZKLFK PD\ EH FRQFHLYHG LQ PDQ\ FDVHV VLPSO\ DV D NLQVKLS XQLW 7KLV XQLW LV GLVWLQJXLVKHG IURP RWKHU VRFLDO XQLWV RI WKH VDPH RUGHU ,Q WKH JUHDW PDMRULW\ RI FDVHV WKH XQLW KDV D QDPH ,W LV WKLV XQLW ZKLFK ODUJHO\ FRUUHVSRQGV WR 9DUHVHnV QDWLYH FRPPXQLW\ DQG KLV GHILQLn WLRQ FDQ EH DFFHSWHG ZLWK WKH SURYLVLRQ WKDW WKH WHUP VWDEOH VRFLRHFRQRPLF XQLW GRHV QRW QHFHVVDULO\ LPSO\ JHRJUDSKLF VWDELOLW\ H[FHSW ZLWKLQ YHU\ ODUJH DUHDV QRU GRHV LW LPSO\ WKDW SHUVRQQHO GR QRW IUHHO\ IORZ DFURVV FRPPXQLW\ ERXQGDULHV ZLWKRXW GHVWUR\LQJ WKH FRQFHSWXDO WHUULWRULDO RU HFRQRPLF XQLW 7KH SKUDVH ERXQG WR D WHUULWRU\ PXVW QRW EH WDNHQ WR PHDQ WKDW WKH WHUULWRU\ GRHV QRW FKDQJH DV HFRORJLFDO FRQGLWLRQV FKDQJH ,Q DGGLWLRQ LW VKRXOG EH VWUHVVHG WKDW 9DUHVHnV GHILQLWLRQ RI WKH QDWLYH FRPPXQLW\ VD\V QRWKLQJ DERXW LWV VRFLRn SROLWLFDO FRPSRVLWLRQ D IHDWXUH RI SULPH LPSRUWDQFH LQ WKH GHDOLQJV RI WKH QDWLYH FRPPXQLW\ ZLWK WKH VWDWH DV &KDSWHU ,; ZLOO VKRZ *URXSV RI FRPPXQLWLHV IRUP ODUJHU DJJUHJDWHV ZKLFK PD\ EH REMHFWLYHO\ DQG VXEMHFWLYHO\ LGHQWLILHG E\ FXOn WXUDO FULWHULD ZKLFK PD\ RU PD\ QRW LQFOXGH ODQJXDJH

PAGE 61

7KH\ PD\ RU PD\ QRW EH FRQWLJXRXV LQ VSDFH 6XFK DJJUHn JDWHV KDYH LWWOH RU QR LPSRUWDQFH WRGD\ LQ HFRQRPLF RU SROLWLFDO WHUPV LQ WKH ORZODQG IRUHVW 7KH\ PD\ KRZn HYHU EH FRQFHSWXDOO\ VLJQLILFDQW LQ WKH EURDGHU VRFLDO RUJDQL]DWLRQ RI WKH JURXS 1DWLYH HWKQLF JURXS PD\ EH XVHG WR UHIHU WR WKLV DJJUHJDWH RU FRPPXQLWLHV LQ WKH DEVWUDFW RU WKH\ PD\ EH JLYHQ FRQYHQWLRQDO OLQJXLVWLF QDPHV VXFK DV &RFDPD RU &DPSD 6XFK WHUPV DV SRLQWHG RXW DERYH KDYH PRUH KLVWRULFDO YDOXH WKDQ FXUUHQW VRFLRn ORJLFDO YDOXH *LYHQ WKH EURDG WLHV RI VRFLDO RUJDQL]Dn WLRQ DQG HWKQLF ERXQGDULHV XVXDOO\ PDUNHG E\ OLQJXLVWLF IHDWXUHV WKLV HWKQLF DQG OLQJXLVWLF JURXS FRUUHVSRQGV WR ZKDW LV IUHTXHQWO\ FDOOHG D WULEH LQ WKH OLWHUDWXUH 1DWLYH FRPPXQLWLHV LQ WKH ORZODQG IRUHVW DUH DUWLFXn ODWHG WR WKH QDWLRQDO VRFLHW\ LQ D YDULHW\ RI ZD\V :H PD\ FRQFHLYH RI D FRQWLQXXP UDQJLQJ IURP PRUH WR OHVV GRPLQDWLRQ LQ WKHLU GHDOLQJV ZLWK ZKLWHPHVWL]R VHFWRUV 7KH IHZ FRPPXQLWLHV ZLWK UHODWLYHO\ OLWWOH FRQWDFW WHQG WR EH FRPSOHWHO\ GRPLQDWHG E\ D IHZ SDWURQV ZKHQHYHU WKH\ DUH LQ FRQWDFW ZKLOH FRPPXQLWLHV LQ SHUPDQHQW DQG FRQn WLQXRXV FRQWDFW DORQJ WKH JUHDW ULYHUV FKRRVH WKH PLGGOHn PHQ ZLWK ZKRP WKH\ GHDO ZLWK UHODWLYHO\ JUHDWHU DXWRQRP\ LQFOXGLQJ ZRUNLQJ GLUHFWO\ DV LQGLYLGXDO FRPPXQLW\ PHPEHUV

PAGE 62

ZLWK DJULFXOWXUDO GHYHORSPHQW EDQNV RU ZRUNLQJ DV ZDJH ODERUHUV LQ H[WUDFWLYH LQGXVWULHV 2QH PLJKW FRQFHLYH RI WKH DERYH FRQWLQXXP DV FRQn VLVWLQJ RI WKH SROHV FRORQ\ WR FODVV &RORQL]HG FRPPXQLWLHV KDYH DFFHVV WR XSZDUG VRFLDO PRELOLW\ RQO\ LQ WKH YHU\ OLPLWHG ORFDO FRQWH[W 7KH UDQJH RI FRQWDFWV ZLWK WKH GRPLQDQW VRFLHW\ LV QDUURZ SHUKDSV D IHZ WUDGHUV OXPEHU SDWURQV RU PLVVLRQDULHV PD\ EH WKH RQO\ PHPEHUV RI WKH GRPLQDQW VRFLHW\ ZKLFK ZLOO KDYH GHDOLQJV ZLWK WKHP LQ D \HDUn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f ,Q WHUPV RI PLGGOHPHQ WKH QDWLYH FRPPXQLW\ PHPEHU LQ WKH FODVV

PAGE 63

V\VWHP KDV UHODWLYH DXWRQRP\ LQ FKRRVLQJ ZKLFK PLGGOHPHQ KH ZLOO GHDO ZLWK DQG WKH SULFHV IRU KLV ODERU DQG SURGXFWV DUH PXFK PRUH GHSHQGHQW RQ PDUNHW IDFWRUV WKDQ DUH SULFHV LQ WKH FRORQ\ ,Q WKH FRORQ\n QDWLYH FRPn PXQLW\ SULFHV DUH VWURQJO\ LQIOXHQFHG E\ WKH GRPLQDQW VXERUGLQDWH FKDUDFWHU RI WKH ZKLWHPHVWL]RQDWLYH UHODWLRQn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n WLILHG DV PLVVLRQ ,QGLDQ RU &KULVWLDQ ,QGLDQ 6XFK SHRSOH DUH FDOOHG WKH FKRODGD E\ WKH GRPLQDQW ZKLWHPHVWL]RV RI WKH 3HUXYLDQ ORZODQGV WR GLVWLQJXLVK WKHP IURP WKH WULEDO FRORQ\f ,QGLDQV 7KH WHUP FKRODGD UHIHUV WR WKH PHPEHUV RI WKHVH FRPPXQLWLHV LQ WKH FRQWH[W LQ ZKLFK LW LV QRUPDOO\ XVHG LQ WKH ORZODQG WURSLFDO IRUHVW DUHD RI 3HUX 7KH VRFLRHFRQRPLF SRVLWLRQ RI WKH &RFDPLOOD FKROR LV PRUH VLPLODU WR WKDW RI WKH UXUDO

PAGE 64

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n VFLRXV RI WKH SRVVLELOLWLHV RI VXFK PRELOLW\ 7ULEDO ,QGLDQV VLPSO\ DUH QRW VXIILFLHQWO\ LQYROYHG LQ WKH QDWLRQDO VWUXFWXUH WR FDUH DERXW LQGLYLGXDO VRFLDO PRELOLW\ ZLWKLQ LW 7KH WHUP FODVV LV XVHG DERYH DGYLVHGO\ 7KH EURDG IURQW RI FRQWDFWV ZKLFK QDWLYH FRPPXQLWLHV LQ WKH UHJLRQDO VWUDWLILFDWLRQ V\VWHP KDYH ZLWK ZKLWHPHVWL]R VHFWRUV DQG WKHLU VLPLODU ODFN RI DFFHVV WR WKH PHDQV RI SURGXFn WLRQ PD\ QRW EH HQRXJK SHU VH WR LGHQWLI\ WKHP DV EHORQJLQJ WR D VRFLDO FODVV +RZHYHU DPRQJ WKH &RFDPLOOD

PAGE 65

DW OHDVW WKHUH LV D GHILQLWH DQG JURZLQJ VHQVH RI FODVV LGHQWLILFDWLRQ IUHTXHQWO\ H[SUHVVHG LQ WHUPV RI QDWLYH YHUVXV 6SDQLVK VXUQDPHV DSHOOLGRV EDMRV YV DSHOOLGRV DOWRVf ZKLFK WUDQVFHQGV WKH HWKQLF JURXS 7KH LGHQWLILn FDWLRQ DV FKROR LV FORVHO\ WLHG WR WKH LGHQWLILFDWLRQ DV DSHOOLGR EDMR DQG LV LQ IDFW D FODVV LGHQWLILFDWLRQ EDVHG XSRQ FXOWXUDO FULWHULD DQG GLIIHUHQFH LQ DFFHVV WR SROLWLFDO DQG HFRQRPLF SRZHU 7R FRPSOHWH WKH PHWKRGRORJLFDOFRQFHSWXDO LQYHQWRU\ UHTXLUHG IRU D QHZ PRGHO RI ORZODQG WURSLFDO IRUHVW QDWLYH HWKQLF JURXSV QRZ UHTXLUHV GHDOLQJ ZLWK WKH H[n WUHPHO\ SUREOHPDWLF WHUPV QDWLYH DQG HWKQLF $V PDQ\ VWXGLHV LQ WKH 3HUXYLDQ KLJKODQGV VKRZ GLVWLQJXLVKLQJ WKH ,QGLDQV IURP WKH QRQ,QGLDQV LV QRW DV VLPSOH DV LW PLJKW VHHP $GDPV $UJXHGDV %RUULFDXG +DPPHO 0DQJLQ 0HWUDX[ 0LVKNLQ 1XQH] GHO 3UDGR 7VFKRSLN f 7KLV LV WUXH LQ SDUW EHFDXVH ,QGLDQ LGHQWLW\ LV VRFLDOO\ VWLJPDWL]HG DOO RYHU WKH $QGHDQ FRXQWULHV ,W LV SRSXODUO\ WKRXJKW WKDW LQ WKH WURSLFDO IRUHVW DUHDV WKH SUREOHP LV VRPHKRZ VLPSOLILHG WKH 1DWLYH &RPPXQLW\ /DZ f IRU H[DPSOH GRHV QRW HYHQ DSSURDFK WKH SUREOHP RI GHILQLQJ ZKR WKH QDWLYHV DUH DQG 9DUHVHnV

PAGE 66

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f DORQJ ZLWK ZKLWHPHVWL]R VHWWOHUV LQ D VLPLODU VWUXFWXUDO SRVLWLRQ 7KH\ DUH WKXV FODVVHG FDPSHVLQRV UHJDUGOHVV RI RWKHU IDFWRUV LQ WKHLU PRGH RI SURGXFWLRQ VXFK DV GLVFULPLQDWLRQ LQ DFFHVV WR FUHGLW RUJDQL]DWLRQ RI ODERU LQ FRPPXQDO IRUPV DQG ODFN RI IDPLOLDULW\ ZLWK ZKLWHPHVWL]R EXUHDXFUDF\ ZKLFK SXW WKHP DW D GLVDGYDQWDJH ZLWK UHJDUG WR WKH ZKLWHPHVWL]R VHWWOHUV 7KH 3UREOHP RI (WKQLFLW\ :KHQ 0HWUDX[ f UHMHFWHG WKH OLVW RI REn MHFWLYH FXOWXUDO WUDLWV ZKLFK VXSSRVHGO\ GHILQHG WKH ,QGLDQ LQ WKH 3HUXYLDQ KLJKODQGV LH FRFD FKHZLQJ ELUWKSODFH FUDIW FKDUDFWHULVWLFV HWFf DV EHLQJ WRR

PAGE 67

LPSUHFLVH KH SURSRVHG WKH FULWHULD RI DVFULSWLRQ DQG VHOIDVFULSWLRQ LQ RUGHU WR VHWWOH WKH LVVXH +H SUHn FHGHG %DUWK E\ WHQ \HDUV LQ WKLV IRUPXODWLRQ %DUWK f %DUWK KRZHYHU WRRN WKH LVVXH IDUWKHU DQG SUREHG WKH ORJLF EHKLQG DVFULSWLRQ DQG VHOIDVFULSWLRQ +H FRQFOXGHG WKDW HWKQLFLW\ GHSHQGHG RQ WKH PDLQWHQDQFH RI ERXQGDULHV EHWZHHQ VRFLDO XQLWV RYHU WLPH E\ PHDQV RI FXOWXUDO GLIIHUHQFHV )ROORZLQJ %DUWK KRZHYHU RQH FDQQRW SUHGLFW ZKDW FXOWXUDO GLIIHUHQFHV ZLOO SURYLGH VXFK ERXQGDULHV LH ULWXDO IRRG KDELWV GUHVV DQG RUQDPHQWV HWFf 7KXV %DUWKnV GHILQLWLRQ LV QRW D VFLHQWLILF GHILQLWLRQ LI RQH GHILQHV VFLHQFH DV WKH DUW RI JHQHUDWLQJ VWDWHPHQWV ZKLFK KDYH SUHGLFWLYH SRZHU %DUWKnV GHILQLWLRQ LV LQ IDFW PHUHO\ DQ HPSLULFDO GHVFULSWLRQ &I *RPHV IRU DQ LQWHUHVWLQJ GLVFXVVLRQ RQ WKLV SRLQWf $QRWKHU SUREOHP LV WKDW LI ZH IROORZ %DUWK DQG GHILQH HWKQLF JURXSV DV VRFLRFXOWXUDO V\VWHPV HQFORVHG E\ FXOWXUDO ERXQGDULHV D FHUWDLQ DPRXQW RI WDXWRORJLFDO UHDVRQLQJ DXWRPDWLFDOO\ IROORZV 6WDWHn PHQWV VXFK DV VXFK DQG VXFK HWKQLF JURXS GLVDSSHDUHG EHFDXVH LW IDLOHG WR PDLQWDLQ LWV ERXQGDULHV EHFRPH FRPPRQ ,I WKH TXHVWLRQ LV FKDQJHG WR D TXHU\ DERXW ZK\ D JLYHQ HWKQLF JURXS IDLOHG WR PDLQWDLQ LWV ERXQGDULHV

PAGE 68

WKH DQVZHU XVXDOO\ EHFRPHV EHFDXVH LW ZDV n£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n WLYHO\ WKHLU GHPLVH DUH WZR VHSDUDWH TXHVWLRQV 7KH FDXVH RI WKHLU SHUVLVWHQFH DQG WKH PHDQV RI WKHLU SHUVLVWHQFH DUH DOVR GLVWLQFW TXHVWLRQV ,Q WKH XVDJH DSSOLHG KHUH LW LV QHFHVVDU\ WR VHSDUDWH WKH WHUP HWKQLF JURXS IURP D XVDJH FRPPRQ WR WKH VRFLDO VFLHQFHV :DJOH\ DQG +DUULV f SRLQW RXW WKDW WKH WHUP KDV EHFRPH V\QRQ\PRXV LQ VRPH VHFWRUV ZLWK PLQRULW\ JURXS $V VXFK HWKQLF JURXSV FDQ RQO\ EH FRQVLGHUHG WR KDYH H[LVWHG VLQFH WKH ULVH RI VWDWH VRFLHWLHV ZKLFK LQFOXGHG WKHP WKHUHE\ PDNLQJ WKHP PLQRULWLHV %XW WKLV XVDJH PLVFRQVWUXHV WKH QDWXUH RI HWKQLFLW\ ,Q WKH VHQVH XVHG KHUH HWKQLFLW\ ZRXOG EH WKH VHQVH RI EHORQJLQJ WR D FXOWXUDO JURXS UHJDUGOHVV RI ZKHWKHU LW LV D WULEH RU DQ HWKQLF PLQRULW\

PAGE 69

(WKQLF JURXS WKHQ UHIHUV WR WKH JURXS RI SULPDU\ FXOWXUDO LGHQWLILFDWLRQ UHJDUGOHVV RI WKH JURXSnV REMHFWLYH VWDWXV ZLWK UHJDUG WR WKH VWDWH VRFLHW\ ,I DQ HWKQLF JURXS LV LQFOXGHG LQ D VWDWH VRFLHW\ DV DOO PRGHUQ HWKQLF JURXSV DUH LW EHFRPHV DQ HWKQLF PLQRULW\ ,Q WKH DERYH VHQVH HWKQLF JURXSV DSSHDUHG RQ WKH VFHQH DV VRFLDO RUJDQL]DWLRQV ORQJ EHIRUH WKH ULVH RI WKH VWDWH *HQHUDWLRQV RI DQWKURSRORJLVWV KDYH LQGLFDWHG WKDW LQ D SUHVWDWH FRQGLWLRQ HWKQLF JURXSV PLJKW EH GHILQHG DV WHUULWRULDO JURXSV RUJDQL]HG E\ WKHRULHV RI FRQVDQJXLQLW\ RU VLPSO\ JHQHRORJ\f DQG DIILQLW\ DQG UHVLGHQFH UXOHV %RXQGDU\ PHFKDQLVPV YDU\ EXW ODQJXDJH GLIIHUHQFHV RU DW OHDVW FHUWDLQ OLQJXLVWLF IHDWXUHV DUH FRPPRQ 6XFK WHUULn WRULDO XQLWV PXVW EH GLVWLQJXLVKHG IURP PRVW JURXSV FODLPLQJ HWKQLFLW\ LQ WKH PRGHUQ ZRUOG DQG WKH WHUP LV XVHG LQ DQ H[WUHPHO\ YDULDEOH ZD\ WRGD\ 7KH IHDWXUHV FRPPRQ WR ERWK DUH WKDW WKH WKHPH RI PDWHULDO LQWHUHVW UXQV DV D PRWLYH WKURXJK WKH FRXUVH RI KLVWRU\ DQG DOO HWKQLF JURXSV OLNH DOO VRFLDO JURXSV PXVW VROYH SUREOHPV RI FRQWLQXLW\ FRPn PXQLFDWLRQ DXWKRULW\ DQG LGHRORJ\ DV ZHOO DV ERXQGDU\ SUREOHPV LQ RUGHU WR VXUYLYH 7KHUH LV D IXUWKHU SUREOHP ZLWK 0HWUDX[nV DQG %DUWKnV IRUPXODWLRQV RI WKH QDWXUH RI HWKQLFLW\ ZKLFK LV D SXUHO\

PAGE 70

SUDFWLFDO SUREOHP LQ RSHUDWLRQDOL]LQJ D GHILQLWLRQ ZKLFK FDQ EH XVHG LQ WKH ORZODQG WURSLFDO IRUHVW UHJLRQ RI 3HUX (LGKDP f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

PAGE 71

ODQJXDJHV 3XUVXLQJ WKH OLQJXLVWLF DQDORJ\ LQ WKH VDPH ZD\ WKDW DOO QRQJHVWXUDO ZRUGV PD\ EH DVVXPHG WR KDYH D FDUULHU WKH YRLFH DOO HWKQLF JURXSV KDYH DQ HVVHQFH OLNH DOO GLVWLQFW VRFLHWLHV WKH\ PD\ EH DVVXPHG WR KDYH SURYLGHG IRU ELRORJLFDO DQG VRFLDO FRQWLQXLW\ 3XWWLQJ WKH PHWKRGRORn JLFDO FDUW EHIRUH WKH KRUVH WKLV PHDQV WKDW VXFK JURXSV PXVW KDYH D WKHRU\ RI FRQVDQJXLQLW\ JHQHRORJ\f DQG DIILQLW\ ZKLFK LV H[SUHVVHG LQ EHKDYLRU ZKLFK LQ WXUQ LPSOLHV UXOHV RI LQFOXVLRQ DQG H[FOXVLRQ DQG WKH DXWKRULW\ WR HQIRUFH WKHP :DJOH\ DQG +DUULV f )RUWXQDWHO\ MXVW DV WKH FRQFHSW RI ZRUG PD\ EH GHILQHG VWUXFWXUDOO\ IRU D JLYHQ ODQJXDJH D FRQFHSW VXFK DV QDWLYH HWKQLF JURXS PD\ EH IRUPXODWHG LQ WHUPV RI UHJLRQDO VRFLDO EHKDYLRU ,Q WKH XSSHU $PD]RQ UHJLRQ RI 3HUX D QDWLYH HWKQLF JURXS PLJKW EH GHILQHG DV IROORZV $ QDWLYH HWKQLF JURXS LV D FXOWXUDO JURXS WKH PHPEHUV RI ZKLFK DUH LQKLELWHG IURP PDUU\LQJ PHPEHUV RI WKH ODUJHU VRFLHW\ RI 3HUXYLDQV ,W GHULYHV LWV FRPSRVLWLRQ IURP WKH UHVXOWDQW HQGRJDP\ DQG IURP WKH DSSOLn FDWLRQ RI LWV RZQ H[RJDPLF SULQFLSOHV DV GLVWLQFW IURP &DWKROLF FDQRQLF ODZ WR SHUVRQV RXWVLGH WKH SULPDU\ NLQ JURXS 7KH DERYH GHILQLWLRQ GHSHQGV IRU LWV YDOLGLW\ RQ WZR VRFLDO IDFWV 7KH ILUVW LV WKDW SHUVRQV ZLWK QDWLYH VXUQDPHV LQIUHTXHQWO\ PDUU\ SHUVRQV ZLWK 6SDQLVK VXUQDPHV LQ WKH UHJLRQ 7KH VHFRQG LV WKDW DOO QDWLYH HWKQLF JURXSV

PAGE 72

KDYH WKHRULHV RI FRQVDQJXLQLW\ ZKLFK DUH GLIIHUHQW IURP ZKLWHPHVWL]R VHFWRUV 7KH &RFDPLOOD IRU H[DPSOH SURn KLELW PDUULDJH WR DQ\ SHUVRQ EHDULQJ RQHnV RZQ SDWHUQDO VXUQDPH XQGHU WKH WKHRU\ WKDW WKH\ DUH RQH EORRG 7KXV H[RJDPLF SULQFLSOHV DUH H[WHQGHG WR SHUVRQV RXWVLGH WKH JURXS ZKLFK D ZKLWHPHVWL]R ZRXOG FRQVLGHU WKH SULPDU\ NLQ JURXS LH VW QG DQG UG FRXVLQVf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n PXQLWLHV LV QRW V\QRQ\PRXV ZLWK WKHLU GLVDSSHDUDQFH 7KH TXHVWLRQ RI ZKDW D QDWLYH HWKQLF JURXS LV DQG KRZ RQH PD\ GHWHUPLQH ZKHWKHU D JLYHQ HWKQLF JURXS LV RU LV QRW D

PAGE 73

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n ]DWLRQ ZKLFK GHSHQGV RQ WKH DGKHUHQFH WR IRUPDOO\ DJUHHG XSRQ UXOHV 7KH VWDWH FDQQRW WROHUDWH WKH DFHSKDORXV FRPn PXQLW\ 7KXV ZH PD\ SUHGLFW WKDW WKH QDWLYH FRPPXQLW\ ZLOO RQO\ EH GUDZQ LQWR WKH RUELW RI WKH VWDWH E\ GHFHSWLRQ DQGRU YLROHQFH DQG LW ZLOO EH PDLQWDLQHG LQ WKH VWDWH V\VWHP RQO\ E\ GXUHVV :KHQHYHU WKH VWDWH WULHV WR LPSRVH LWVHOI XSRQ WKH QDWLYH FRPPXQLW\ GLUHFWO\ RQ D GD\ WR GD\ EDVLV RQH PD\ SUHGLFW WKDW FRQIOLFWV DQG FODVKHV ZLOO RFFXU ZKLFK FDQ EH WUDFHG WR FKH RSSRVHG QDWXUH RI WKH VWDWH DQG WKH QDWLYH

PAGE 74

FRPPXQLW\ VRFLDO DQG HFRQRPLF RUJDQL]DWLRQ :KHQ WKHVH FODVKHV DUH RYHUFRPH LW ZLOO RQO\ EH DW WKH H[SHQVH RI FRQYHUWLQJ WKH QDWLYH FRPPXQLW\ LQWR D QRQQDWLYH FRPn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

PAGE 75

LGHRORJLFDOO\ EDVHG RQ WKHLU KLVWRULFDO VHSDUDWLRQ IURP RWKHU ,QGLDQV DV &KULVWLDQ ,QGLDQV DQG FUHDWHG E\ WKH SUD[LV ZKLFK WKDW VWDWXV LPSOLHV 7KRXJK FDOOHG FKRORV WKHLU SRVLWLRQ LQ WKH UHJLRQDO HFRQRPLF VWUXFWXUH DQG WKHLU KLVn WRULFDO WUDMHFWRU\ KDV OLWWOH WR GR ZLWK WKH WHUP FKROR DV LW LV XVHG LQ WKH KLJKODQGV RU RQ WKH FRDVW FI )XHQ]DOLGD f 7KH VHFRQG SUREOHP FRQFHUQV WKH XQLWV RI VRFLRORJLFDO DQDO\VLV 7KHUH DUH WKH KRXVHKROG WKH QDWLYH FRPPXQLW\ DQG WKH QDWLYH HWKQLF JURXS 7KH KLVWRULFDO GHSWK VHHPV HVVHQWLDO WR VRXQG VRFLRORJLn FDO DQDO\VLV EXW LW ZRXOG EH LQFOXGHG LQ DQ\ FDVH LI IRU QR RWKHU UHDVRQ WKHQ IRU WKH YHU\ SUDFWLFDO UHDVRQ WKDW WKH &RFDPLOOD DUH QRZ LQ D UDSLGO\ FKDQJLQJ DQG GHYHORSLQJ ZRUOG DQG DV /HY\ f KDV REVHUYHG WKH PRVW FUXHO DQG VWXSLG PLVWDNHV LQ PRGHUQL]DWLRQ UHVXOW IURP LJQRUDQFH DERXW WKH KLVWRU\ RI WKH SHRSOH LQYROYHG 7KH VHFRQG VHFWLRQ ZLOO FRQWLQXH WKH WKHPH RI WKH UHODWLRQV EHWZHHQ WKH &RFDPLOOD DQG WKH VWDWH VRFLHW\ LQ ZKLFK WKH\ DUH LQFOXGHG WKLV WLPH V\QFKURQLFDOO\ 7KH LQWHUIDFH RI WKH UHODWLRQVKLS ZLOO EH H[DPLQHG DW WKH OHYHO RI WKH HFRQRPLF V\VWHP WKH OHYHO RI VRFLDO RUJDQL]DWLRQ DQG WKH OHYHO RI LGHRORJ\ DQG LGHQWLW\ $ ILQDO FKDSWHU

PAGE 76

ZLOO GUDZ FRQFOXVLRQV DV WR WKH UHDVRQV IRU WKHLU VXUYLYDO WKXV IDU IURP WKH SHUVSHFWLYH RI FXOWXUDO PDWHULDOLVP DQG DWWHPSW WR SURMHFW D WUDMHFWRU\ IRU WKHP EDVHG RQ SRVVLEOH DFWLRQV E\ WKH 3HUXYLDQ JRYHUQPHQW

PAGE 77

&+$37(5 ,,, 7+( 3+<6,&$/ (19,5210(17 2) 7+( &2&$0,//$ 7KH HDVWHUQ ORZODQGV RI 3HUX PRVWO\ FRYHUHG ZLWK WUHHV DQG VKUXEV H[FHSW ZKHUH KXPDQ XVH KDV GHVWUR\HG LW SUHVHQWV WZR RUGHUV RI SUREOHP WR WKH 3HUXYLDQ QDWLRQ 7KH UHJLRQ SUHVHQWV IRUPLGDEOH SUREOHPV LQ VHWWOHPHQW VWULFWO\ IURP D WDFWLFDO DQG HFRORJLFDO VWDQGSRLQW $Q HYHQ PRUH VHULRXV SUREOHP LV WKDW IHZ LI DQ\ SHRSOH KDYH HYHU XQGHUVWRRG WKH UHJLRQ WKRURXJKO\ LQ ERWK LWV VRFLDO DQG HFRORJLFDO DVSHFWV 7R PDNH D VZHHSLQJ VWDWHPHQW HYHQ PRUH VZHHSLQJ ZLOO LQFOXGH PRVW RI WKH SHRSOH UHVSRQVLEOH IRU SODQQLQJ DQG LPSOHPHQWDWLRQ RI SODQQLQJ LQ WKH WURSLFDO ORZODQGV LQ WKH UDQNV RI WKH LJQRUDQW 7R FDOP RXWUDJHG IULHQGV DQG FROOHDJXHV WKH ZULWHU PXVW EH LQFOXGHG DPRQJ WKHLU UDQNV DV ZHOO IRU WKH FRPSOH[LW\ RI WKH SUREOHP LV RYHUZKHOPLQJ DQG WKH GLYLVLRQ RI ODERU DPRQJ DFDGHPLF GLVFLSOLQHV PLWLJDWHV DJDLQVW JOREDO YLHZV 7R IXUWKHU WKH SRLQW DERXW KRZ OLWWOH WKH UHJLRQ LV NQRZQ LQ JHQHUDO HYHQ DIWHU \HDUV RI RFFXSDWLRQ DQG WKH UHFHQW LQWHQVH VHDUFK IRU RLO LQ WKH 3HUXYLDQ ORZODQGV

PAGE 78

WKHUH DUH QR WRSRJUDSKLFDO PDSV DYDLODEOH IRU DQ\ RI WKH ORZODQG IRUHVW 7KH LPSUHVVLRQ LV JRWWHQ IURP WKH OLWHUDWXUH ZKLFK SRLQWV RXW KRZ OLWWOH VORSH WKHUH LV LQ WKH NLORPHWHUV IURP WKH $WODQWLF 2FHDQ (OHYDWLRQ PHWHUVf WR ,TXLWRV (OHYDWLRQ PHWHUVf DORQJ WKH $PD]RQ 5LYHU WKDW WKH HQWLUH $PD]RQ EDVLQ LV DV IODW DV D WDEOH 7KLV LPn SUHVVLRQ SHUYDGHV HYHQ WKH WKLQNLQJ RI QRUPDOO\ FDUHIXO SODQQHUV 7KH 6ZLVV SURMHFW RI FDWWOHUDLVLQJ DW *HQDUR +HUUHUD RQ WKH 8FD\DOL 5LYHU IRU H[DPSOH KDG VHULRXV SUREOHPV ZLWK FDWWOH ZKHQ WKH SODQQHUV FOHDUHG WKH IRUHVW IRU SDVWXUH 5ROOLQJ KLOOV KROHV DQG GHHS JXOOLHV VHYHUHO\ SUHMXGLFHG WKHLU HIIRUW 7KH WHUUDLQ WKURXJKRXW WKH ORZODQG IRUHVW UHJLRQ LV YHU\ DFFLGHQWDO ZLWKLQ OLPLWV RI IDLUO\ ORZ UHOLHI DQG WKLV KDV PDQ\ FRQVHTXHQFHV IRU QDWLYH DJULn FXOWXUDO SUDFWLFHV 7KH ROG SHRSOH DPRQJ WKH &RFDPLOOD XVHG WR VD\ WKDW ZKHQ WKH HDUWK FKDQJHG IURP ZDWHU WR ODQG WKH ZDYHV JRW IUR]HQ LQWR SODFH 'LIIHUHQW SHRSOH VSOLW XS WKH WRWDOLW\ RI WKH IRUHVWHG ODQGV HDVW RI WKH $QGHV LQ GLIIHUHQW ZD\V 7KH XVXDO FHMD VHOYD GLVWLQFWLRQ EDVHG RQ DOWLWXGH DERYH VHD OHYHO ZDV HFKRHG LQ 3XOJDU 9LGDOnV *HRJUDILD GHO 3HU f ZKHQ KH GLYLGHG HDVWHUQ 3HUX LQWR 6HOYD $OWD DQG 6HOYD %DMD ZLWK WKH IRUPHU RFFXS\LQJ WKH DOWLWXGH RI WR PHWHUV

PAGE 79

DQG WKH ODWWHU RFFXS\LQJ WKH HOHYDWLRQV XQGHU PHWHUV (FRORJLVWV WRGD\ DUH DEOH WR LPSURYH RQ WKH VFKHPH ZLWK WKH FRQFHSW RI OLIH ]RQHV +ROGULGJH f EDVHG RQ WKUHH IDFWRUV DYHUDJH DQQXDO ELRWHPSHUDWXUHV WKH DQQXDO DYHUDJH RI WHPSHUDWXUHV EHWZHHQ r& DQG r&f DYHUDJH DQQXDO UDLQIDOO LQ PLOOLPHWHUV DQG WKH SRWHQWLDO HYDSRWUDQVSLUD WLRQ UDWLRPHDQ DQQXDO WHPS LQ & ; f ZKLFK H[SUHVVHV PHDQ DQQXDO UDLQIDOO LQ PP f WKH UHODWLRQ EHWZHHQ UDLQIDOO DQG HYDSRUDWLRQ %\ +RO GULGJHnV V\VWHP PXFK RI WKH ORZODQG IRUHVW LQ WKH &RFDPLOOD DUHD ZRXOG EH FODVVLILHG DV SUHPRQWDQH WURSLFDO PRLVW IRUHVW 7DEOH VKRZV WKH UHOHYDQW FOLPDWRORJLFDO GDWD IURP %DQG\ DQG %HQLWHV f DQG IRU FRPSDULVRQ WKH DYHUDJH UDLQIDOO IURP D \HDU VDPSOH 7KHVH GDWD ZHUH WDNHQ LQ
PAGE 80

7DEOH &OLPDWRORJLFDO 'DWD IURP
PAGE 81

PRQWKOY UDLQIDOO '$7$ )520 62,/ 6&,(1&( '(3$570(17 1257+ &$52/,1$ 67$7( 81,9(56,7< DQQXDO PHDQ PP )0$0$621' PRQWK )LJXUH *UDSK RI UMZHQW\RQH
PAGE 82

FRPPXQLFDWLRQf 7KLV YDULDELOLW\ PD\ JR D ORQJ ZD\ WRZDUG H[SODLQLQJ VRPH RI WKH FXOWXUDO GLYHUVLW\ QRWHG LQ WKH UHJLRQ HYHQ DPRQJ QRQULYHULQH ,QGLDQV 7KH OLIH ]RQH FODVVLILFDWLRQ GRHV QRW WHOO WKH ZKROH VWRU\ KRZHYHU 9DULRXV PLFURHQYLURQPHQWV ZLWKLQ D OLIH ]RQH KDYH SURIRXQG FRQVHTXHQFHV IRU KXPDQ RFFXSDWLRQ 7KH FRQYHQWLRQDO GLVWLQFWLRQ EHWZHHQ ULYHULQH ,QGLDQV DQG LQODQG ,QGLDQV RU IRUHVW ,QGLDQVf UHIOHFWV JUHDW GLIIHUn HQFHV LQ DGDSWDWLRQ WR WKH WZR PDMRU SROHV RI VXEVLVWHQFH UHVRXUFHV LQ WKH ORZODQG WURSLFV 3URWHLQV DQG 3RSXODWLRQV /RZLH REVHUYHG WKDW WKH PDMRU SDUW RI WKH KXPDQ SRSXODn WLRQV RI WKH ORZODQG IRUHVWV ZHUH PRUH DGDSWHG WR WKH ULYHUV WKDQ WR WKH DUHDV EHWZHHQ WKH ULYHUV :KLOH KH UHFRJQL]HG WKDW VRPH SHRSOH ZHUH FDQRHOHVV KH FRQVLGHUHG WKH SRVVHVVLRQ RI HIIHFWLYH ULYHU FUDIW D GLDJQRVWLF IHDWXUH RI WKH FXOn WXUHV RI WKH ORZODQG WURSLFDO IRUHVW f 0HJJHUV f SRLQWHG RXW FHUWDLQ VLPLODULWLHV LQ GHQVLW\ RI VHWWOHPHQW DQG HDVH RI VXEVLVWHQFH DPRQJ SRSXODWLRQV OLYLQJ LQ WKH OLPLWV GHILQHG E\ WKH PDUJLQV RI WKH ULYHU YDOOH\V 6KH FRQWUDVWHG WKHVH SRSXODWLRQV ZLWK WKH PRUH VFDWWHUHG DQG PLJUDWRU\ SRSXODWLRQV LQ WKH

PAGE 83

DUHDV EHWZHHQ WKH ULYHUV ZKLFK VKH VXSSRVHG WR EH DQ DGDSWDn WLRQ WR SRRU VRLOV DQG ORZ SURWHLQ DYDLODELOLW\ WR QDPH WKH WZR PRVW LPSRUWDQW YDULDEOHV /DWKUDS f DJUHHG ZLWK WKH EDVLF GLYLVLRQ RI FXOWXUDO W\SHV ZKLOH GLVDJUHHLQJ ZLWK 0HJJDUnV DVVHVVPHQW RQ JHQHUDO SRSXODWLRQ PRYHPHQWVf DQG WRRN WKH SRLQW IDU HQRXJK WR LQVLVW WKDW 3DQRDQ ,QGLDQV ZKR OLYHG LQODQG IURP WKH 8FD\DOL 5LYHU ZHUH GHFXOWXUHG UHIXJHHV IURP ULYHU SRSXODWLRQV GULYHQ LQODQG DW VRPH SUHYLRXV WLPH E\ ILHUFH FRPSHWLWLRQ IRU WKH IHUWLOH ODQGV RI WKH ULYHU YDOOH\V 7KH\ KDG EHHQ XQDEOH KH VDLG WR VXVWDLQ WKH UHODWLYHO\ ULFK V\PEROLF OLIH RI WKH ULYHULQH 3DQRDQV SULPDULO\ EHFDXVH WKH SRRU VRLOV DQG SURWHLQ UHVRXUFHV RI WKH LQODQG DUHDV GLG QRW SHUPLW ODUJH DQG HQGXULQJ VHWWOHPHQWV *URVV f WRRN ERWK 0HJJDUV DQG /DWKUDS WR WDVN IRU HPSKDVL]LQJ UHODWLYH VRLO TXDOLW\ UDWKHU WKDQ UHODWLYH ULFKQHVV LQ DQLPDO SURWHLQV EHWZHHQ ULYHU IORRGSODLQ DQG LQODQG DUHDV +H EURXJKW D JUHDW GHDO RI GDWD WR EHDU RQ WKH VXEMHFW DQG HPSKDVL]HG WKH YHU\ ORZ UDWLR RI DQLPDO PDVV WR WRWDO ELRPDVV LQ WKH LQODQG DUHDV 7KH GLVWULEXWLRQ RI SURWHLQV KH PDLQWDLQHG ZDV VXIILFLHQW LQ DQG RI LWVHOI WR H[SODLQ SRSXODWLRQ VL]H DQG VWDELOLW\ +LV 3HUXYLDQ GDWD ZHUH WDNHQ IURP %HUJPDQ f ZKR VWXGLHG WKH

PAGE 84

VXEVLVWHQFH SDWWHUQV RI D JURXS RI 8FD\DOL 6KLSLER DV DQ H[DPSOH RI ULYHULQH VXEVLVWHQFH 7KHVH 6KLSLER KDG QR DFFHVV WR KLJK JURXQG DQG WKHLU HQWLUH DJULFXOWXUDO F\FOH ZDV EDVHG RQ WKH ULVH DQG IDOO RI WKH ULYHU IRU LQ WKH UDLQ\ VHDVRQ WKH ULYHU IORRGHG DOO WKHLU ODQGV :KLOH FRQFHGLQJ WKH HVVHQWLDO YDOLGLW\ RI WKH ULYHULQH LQODQG GLVWLQFWLRQ LW VHHPV ZLVH WR KHGJH D ELW 5HFHQW VWXGLHV KDYH VKRZQ UDWKHU ODUJH VHWWOHPHQWV RI 0DWVV 0D\RUXQDf EHWZHHQ WKH 8FD\DOL DQG
PAGE 85

EH JURXSV ZKR H[SORLW ERWK ULYHULQH DQG LQODQG HQYLURQPHQWV DQG QR VLPSOH VHSDUDWLRQ RI WKH WZR NLQGV RI JURXSV LV OLNHO\ WR EH DFFXUDWH /DQG DQG :DWHU )HDWXUHV RI WKH 5LYHU 9DOOH\ 7KH DUHD RI LQWHUHVW WR WKLV VWXG\ LV PDLQO\ WKH ORZHU +XDOODJD 5LYHU YDOOH\ EHWZHHQ
PAGE 86

DW DERXW NLORPHWHUV SHU KRXU DQG PHDQGHULQJ EDFN DQG IRUWK DFURVV LWV YDOOH\ ERXQGDULHV %HWZHHQ 6DQWD 0DULD DQG
PAGE 87

FRXOG EH VSHDUHG DORQJ WKHLU PDUJLQV DQG WXUWOHV WXUWOH HJJV DQG LJXDQD HJJV FRXOG EH JDWKHUHG LQ -XO\ DQG $XJXVW RQ WKH EHDFKHV WKHPVHOYHV 7KH PDLQ SDUW RI WKH ULYHU FKDQQHO ZDV HIIHFWLYHO\ VWHULOH IRU QDWLYH XVH IRU WKH\ ODFNHG WKH PHDQV WR H[SORLW WKH UHVRXUFH (YHQWXDOO\ JUDYLW\ ZLQV WKH VWUXJJOH RI WKH YXHOWD DQG WKH ULYHU VKRUWHQV LWV FKDQQHO E\ FXWWLQJ RII WKH 8 DQG LVRODWLQJ LW LQWR DQ R[ERZ ODNH FRFKD RU WLSLVKFDf FRQQHFWHG WR WKH PDLQ ULYHU E\ GHHS FDQDOV FDQRVf ZKLFK VHUYH DV FKDQQHOV WR ILOO DQG GUDLQ WKH ODNHV DV WKH ULYHU JRHV XS DQG GRZQ IURP GD\ WR GD\ DQG VHDVRQDOO\ LQ UHVSRQVH WR ORFDO DQG UHJLRQDO UDLQV ,Q KLJK ZDWHU WLPH IURP )HEUXDU\ XQWLO 0D\ DQG D OHVV GUDVWLF IORRG LQ 1RYHPEHU DQG HDUO\ 'HFHPEHUf RWKHU FKDQQHOV WR WKH ODNHV RSHQ XS VDFDULWDVf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

PAGE 88

IURP DQ HQRUPRXV DUHD RI IRUHVW LQWR WKH ODNHV DQG LQWR WKH WRWDO ZDWHU V\VWHP 7KH GUDVWLF ULVHV DQG IDOOV DV PXFK DV WYR PHWHUV LQ KRXUVf RI WKH ODNHV FUHDWH DQ XQVWDEOH HFRV\VWHP IRU WKH ILVK SRSXODWLRQV 7KH LQVWDELOLW\ IDYRUV WKH SURSDJDWLRQ RI 5 VHOHFWHG VSHFLHV VHOHFWHG IRU WKH DELOLW\ WR JURZ DQG UHSURGXFH UDSLGO\ DQG WKLV IHDWXUH RI WKH HFRV\VWHP G\QDPLFV KHOSV H[SODLQ ZK\ LW LV WKDW WKH ODNHV DQG ULYHUV RI WKH ORZODQG WURSLFDO IRUHVW DUH VXFK DQ H[WUDn RUGLQDU\ UHVRXUFH IRU QDWLYH SRSXODWLRQV 7KH ODNHV HVSHFLDOO\ DUH ULFK LQ ILVK DQG UHSWLOH SRSXODWLRQV )LJXUH VKRZV WKH ULVH DQG IDOO RI RQH VXFK ODNH RQ D ZHHNO\ EDVLV IRU (YHQWXDOO\ WKH R[ERZ ODNH VLOWV LQ DQG LWV FDQRV FORVH H[FHSW LQ KLJK ZDWHU 7KH &RFDPLOOD YLYLGO\ H[SUHVV ZKDW KDSSHQV WKHQ ZKHQ WKH\ VD\ WKH ODNH GLHV $TXDWLF SODQWV WDNH RYHU DQG WKH ODNH LV JUDGXDOO\ PDGH XQLQKDELWDEOH IRU ILVK DOWKRXJK VRPH GHDG ODNHV KDYH ODUJH SRSXODWLRQV RI SDLFKH DUDSDLPD JLJDVf WKH ILVK NQRZQ DV SLUDUXFX LQ %UD]LO DQG WKH ODUJHVW IUHVKZDWHU ILVK LQ WKH ZRUOG IRU D ORQJ WLPH EHIRUH WKH\ DUH H[WLQFW (YHQWXDOO\ WKH ODNH EHFRPHV D PXGG\ ERJ FRORQL]HG E\ D IHZ WUHH VSHFLHV ZDLWLQJ IRU WKH QH[W PLJUDWLRQ RI WKH ULYHU FKDQQHO WR GHVWUR\ LW

PAGE 89

12 $3352;,0$7( 0(7(56 $%29( 6($ /(9(/ /

PAGE 90

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

PAGE 91

PXVW SDVV LV YHU\ SURGXFWLYH 1DWLYHV WRGD\ VRPHWLPHV WU\ WR EORFN WKH FKDQQHO WHPSRUDULO\ DQG QHW DV PDQ\ ILVK DV SRVVLEOH /HDYLQJ WKH ODNHV WKH ILVK PLJUDWH WR WKH ULYHUV DQG PRYH XSVWUHDP IRUPLQJ SRFNHWV RI ORFDO ULFKn QHVV IRU WKH FRPPXQLWLHV ZKLFK KDSSHQ WR EH ZKHUH WKH ILVK DUH DW DQ\ JLYHQ WLPH 7KH ODQG IHDWXUHV RI WKH IORRGSODLQ WDNH WKHLU IRUPV IURP WKH G\QDPLFV RI WKH ULYHU (YHU\ WLPH WKH ULYHU VSLOOV LWV EDQNV LW GHSRVLWV WKH JUHDWHU SDUW RI LWV VHGLPHQW ORDG ZLWKLQ PHWHUV RI WKH FKDQQHO FUHDWLQJ UDWKHU XQHYHQ QDWXUDO OHYHHV ZKLFK WHQG WR EH KLJKHU LQ HOHYDWLRQ WKDQ WKH ODQGV LPPHGLDWHO\ LQ EDFN RI WKHP 7KH ]RQH RI WKH OHYHH WKH EDQGDf LV WKH ]RQH QRUPDOO\ XVHG WRGD\ IRU ULYHU EDQN DJULFXOWXUH 7KH FURSV PRVW IUHTXHQWO\ JURZQ DUH SODQWDLQV FRUQ VZHHW PDQLRF WDUR SHDQXWV VZHHW SRWDWRHV DQG UHFHQWO\ MXWH PDOYD XUHQDf 2OG OHYHHV DORQJ ROG ULYHU FKDQQHOV DQG ROG R[ERZ ODNHV PD\ EH KLJK HQRXJK VR WKDW RQO\ H[FHSWLRQDOO\ KLJK IORRGV LQ WKH UDLQ\ VHDVRQ FDQ FRYHU WKHP 7KHVH DUHDV DUH FDOOHG UHVWLQJDV DQG DUH DQLPSRUWDQW ODQG UHVRXUFH IRU WKH QDWLYHV QRW RQO\ IRU DJULFXOWXUH EXW DOVR IRU KXQWLQJ :KHQ WKH IORRG ZDWHUV ULVH LQ WKH IORRGSODLQ WHUUHVWULDO DQLPDOV WHQG WR FRQFHQWUDWH RQ WKH UHVWLQJDV DQG KXQWLQJ

PAGE 92

WKHP EHFRPHV HDVLHU 0DQ\ &RFDPLOOD WRGD\ RQO\ KXQW VXFK DQLPDOV ZKHQ WKH UHVWLQJDV EHFRPH LVODQGV DQG D VSHFLDO YHUE UHVWLQJXLDU GHVFULEHV WKH DFWLYLW\ 7KH ORZHU ODQGV RI WKH IORRGSODLQ DUH RI WZR NLQGV /DQGV O\LQJ VR ORZ WKDW HYHQ PRGHUDWH ULVHV LQ WKH ZDWHU OHYHO ZLOO IORRG WKHP DQG ZKLFK WHQG WR DFW DV UDLQ FDWFKn PHQW EDVLQV DUH FDOOHG WDKXDPSDV DQG DUH QRW XVHG IRU DQ\ SXUSRVH H[FHSW IRU JDWKHULQJ DQG RFFDVLRQDO KXQWLQJ RI WKH WDSLU DQG WKH FDS\EDUD ZKLFK LQKDELW WKHP /DQGV ZKLFK DUH QRW KLJK UHVWLQJDV EXW ZKLFK KDYH DGHTXDWH GUDLQDJH DUH FDOOHG EDMLDOHV DOVR XVHG DV D JHQHULF WHUP IRU DQ\ ORZO\LQJ DUHDf DQG DUH IDUPHG DQG KXQWHG 7KHVH ODQGV DUH RI H[FHSWLRQDO VLJQLILFDQFH WRGD\ IRU FDVKFURSSLQJ DQG WKH\ IORRG DQQXDOO\ EXW ZLWK D PXFK ORZHU UDWH RI VHGLn PHQWDWLRQ WKDQ WKH EDQGD 7RGD\ WKH\ DUH PDLQO\ XVHG IRU MXWH FRUQ ZDWHUPHORQ DQG YDULRXV KHUEV 7KH ODVW VLJQLILFDQW ODQG IRUPV RI WKH ULYHU YDOOH\ DUH WKH EHDFKHV DORQJ WKH ULYHU ZKLFK DUH H[SRVHG IURP ODWH 0D\ XQWLO 1RYHPEHU 7KHVH DUH RI WZR NLQGV 6DQG\ EHDFKHV RYHU ZKLFK ZDWHU IORZV WRR UDSLGO\ WR GHSRVLW VLOW DQG ZKLFK DUH QRW SDUWLFXODUO\ JRRG IRU DQ\ FURS DUH FDOOHG SOD\DV $V PHQWLRQHG HDUOLHU WKHVH EHDFKHV DUH VLJQLILn FDQW ILVKLQJ DQG JDWKHULQJ UHVRXUFHV %HDFKHV RYHU ZKLFK

PAGE 93

ZDWHU UXQV VORZO\ KDYH DQ DQQXDO OD\HU RI VLOW GHSRVLWHG RQ WKHP DQG DUH XVHG WR SODQW EHDQV SHDQXWV DQG UHFHQWO\f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n TXHQWO\ H[SUHVV D GLVWLQFWLRQ EHWZHHQ ZKLWH ZDWHU

PAGE 94

\XUDF \DFXf DQG EODFN ZDWHU \DQD \DFXf D GLVWLQFWLRQ ZKLFK VRPH HFRORJLVWV WKLQN LV VLJQLILFDQW LQ WHUPV RI WKH HQYLURQPHQW WKH WZR W\SHV RI VWUHDPV SURYLGH IRU ILVK SRSXODWLRQV 0DQ\ TXHEUDGDV KDYH WKHLU RZQ VPDOO IORRGSODLQV ZKLFK LQ FDVHV RI KHDY\ UDLQIDOO IORRG IRU D SHULRG UDQJLQJ IURP WZR KRXUV WR WZR GD\V FUHDWLQJ D SHUPDQHQW PLFURHQYLURQPHQW ZLWK PRUH IULDEOH VRLOV WKDQ WKH XVXDO XSODQG VRLOV 7KHVH DUHDV DUH JRRG IRU KXQWLQJ DQG IRU IDUPLQJ 7KH FURSV SODQWHG RQ WKHP LQFOXGH PRVW RI WKH UHSHUWRU\ RI WKH EDQGD DQG WKH EDMLDOHV LH SODQWDLQV FRUQ PDQLRF VZHHW SRWDWRHV WDUR KHUEVDQG VRPHWLPHV UHFHQWO\f ULFH DQG MXWHf 7KHVH ODQGV DUH UHFRJQL]HG LQ WKH QDWLYH FODVVLILn FDWLRQ V\VWHP IRU VRLOV DV YDULQDOHV PHDQLQJ WKDW WKH YDULQD SDOP SK\WHOHSKDV PDFURFDUSDf LV D GRPLQDQW XQGHUn VWRU\ SODQW 7KH SDOP KDV FXOWXUDO VLJQLILFDQFH DV WKH VRXUFH IRU WKH JDEOH FRYHULQJ RQ QDWLYH KRXVHV $ ZRUP ZKLFK JURZV LQ WKH SDOP LV FRQVXPHG DQG WKH IUXLW RI WKH SDOP EHFDPH YDOXDEOH IRU D WLPH DV EXWWRQ PDWHULDO EHIRUH WKH ZLGHVSUHDG XVH RI SODVWLF EXWWRQV 7KH VDQGLHU XSODQG VRLOV DUH UHFRJQL]HG DV LUDSD\DOHV 7KH LUDSD\D DQ XQLGHQWLILHG SODQW ZLWK D SDOPDWH DUUDQJHn PHQW RI ORQJ ODXUHO VKDSHG OHDYHV LV XVHG IRU URRILQJ

PAGE 95

PDWHULDO DQG WKH VRLOV RQ ZKLFK LW JURZV DUH UHFRJQL]HG DV EHLQJ JRRG IRU FXOWLYDWLQJ PDQLRF DQG D URRW XVHG IRU ILVK SRLVRQ EDUEDVFRf EXW QRW IRU SODQWDLQV RU FRUQ /DQG DORQJ TXHEUDGDV ZKLFK GR QRW IORRG DQG ZKLFK WHQG WR KDYH KHDYLHU FOD\ VRLOV WKDQ WKRVH WKDW GR IORRG DUH DOVR YDOXHG SRVVLEO\ EHFDXVH RI WKH GUDLQDJH RIIHUHG E\ WKH TXHEUDGD 7KHVH VRLOV DUH XVHG IRU SODQWDLQV DQG UHFHQWO\f RFFDVLRQDOO\ ULFH 2Q WKH ZHVW VLGH RI WKH +XDOODJD 5LYHU WKH IORRGSODLQ H[WHQGV PXFK IDUWKHU LQODQG DQG UHODWLYHO\ OLWWOH RI WKH ODQG IRUPV DUH SUHVHQWO\ XVHG IRU IDUPLQJ 7KH VHWWOHn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

PAGE 96

SRSXODWLRQV 7KH\ DUH DOVR HDVLHU WR H[SORLW 7KH ODNHVKRUHV DQG YDOOH\ PDUJLQV DUH FORVHU WR DOWXUDV DQG WKH SUHVHQW &RFDPLOOD IDUPLQJ V\VWHP LQYROYHV H[SORLWLQJ ERWK DOWXUDV DQG ED M MDOHV XVHG KHUH LQ WKH JHQHULF VHQVH WR LQFOXGH UHVWLQJDV LQ RWKHU ZRUGV DOO IORRGSODLQ ODQG ZKLFK LV IDUPDEOH H[FHSW IRU WKH EHDFKHVf (YHQ SRSXODn WLRQV DORQJ WKH ZHVW EDQN RI WKH ULYHU ZKR GR QRW KDYH HDV\ DFFHVV WR LQODQG DOWXUDV QRUPDOO\ KDYH RQH RU WZR ILHOGV LQ WKH HDVW EDQN DOWXUDV VRPHWLPHV D GD\n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

PAGE 97

0DUDILIRQ 9DOOH\ DQG KDYH EHJXQ WR RFFXS\ VRPH RI WKH ULYHUV DQG TXHEUDGDV QRUWK RI WKH 0DUDRQ 5LYHU 7KH GLVSODFHG DQG WKH GLVVDWLVILHG VZHOO WKH PLJUDQW EDUULRV RI
PAGE 98

IL[HG LQWHQW RI SHRSOHV WR UHPDLQ VHSDUDWH XQGHU FRQGLWLRQV RI GLUHFW GRPLQDWLRQ )LUVW KRZHYHU D IHZ SDJHV ZLOO EH GHYRWHG WR UHFRQVWUXFWLQJ ZKDW LV NQRZQ DERXW WKHLU FXOWXUH EHIRUH FRQWDFW DQG WKHLU SODFHPHQW ZLWK UHJDUG WR RWKHU HWKQLF JURXSV 0DS VKRZV WKH UHJLRQ SHUWLQHQW WR WKH &RFDPLOOD DQG &RFDPD

PAGE 99

, FU!

PAGE 100

&+$37(5 ,9 7+( 35(+,6725< $1' $%25,*,1$/ &8/785( 2) 7+( &2&$0$ $1' &2&$0,//$ 7KH SUHKLVWRU\ RI WKH &RFDPD DQG &RFDPLOOD LQ WKH QDWXUDO UHDOP GHVFULEHG LQ WKH SUHYLRXV FKDSWHU LV VRPHn ZKDW REVFXUH ,I /DWKUDS f LV FRUUHFW LQ LGHQWLI\n LQJ WKH FHQWUDO 8FD\DOL 5LYHU &DLPLWR FRPSOH[ DV EHORQJLQJ WR WKH DQFHVWRUV RI WKH &RFDPD WKH SUREDELOLW\ LV WKDW WKH &RFDPD ILVVLRQHG IURP WKH 2PDJXD QRW WRR ORQJ EHIRUH WKH WK FHQWXU\ $' DQG SXVKHG RQ XSVWUHDP DQG LQWR WKH 8FD\DOL 7KH\ PXVW KDYH HVWDEOLVKHG WKHPVHOYHV DV IDU VRXWK DV WKH 7DPD\D 5LYHU DW WKDW WLPH /DWKUDSnV PRGHO RI 7XSLDQ H[SDQVLRQ LPSOLHV WKDW WKH\ KDG EHHQ SXVKLQJ WKH 3DQRDQV XSVWUHDP RQ WKH 8FD\DOL 5LYHU DQG WKDW WKH SURFHVV LV RQJRLQJ WRGD\ ,W LV GLIILFXOW WR UHFRQFLOH WKLV YLHZ ZLWK WKH KLVWRULFDO GDWD IRU WKH &RFDPD $W WKH WLPH WKH\ ZHUH GLVFRYHUHG LQ E\ WKH H[SHGLWLRQ RI -XDQ GH 6DOLQDV /R\ROD -LPHQH] GH (VSDGD /;;,,,f WKH\ ZHUH LVRODWHG EHWZHHQ D JURXS FDOOHG WKH %HQRULQDV DQG WKH 3DQRDQV WR WKH 6RXWK ,W VHHPV H[WUHPHO\ LPSUREDEOH XVLQJ 6DOLQDV

PAGE 101

/R\RODnV LQIRUPDWLRQ RQ GLVWDQFH DQG IDFWRULQJ LW IRU D FRPSDULVRQ EHWZHHQ KLV HVWLPDWHV LQ OHDJXHV DQG DFWXDO NLORPHWHUV RQ PRGHUQ PDSVf WKDW WKH &RFDPD ZHUH GLVWULEXWHG DW WKDW WLPH DQ\ IDUWKHU VRXWK WKDQ 7LHUUD %ODQFD DQG SUREn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f KDG IRUPHG DW OHDVW RQH YLOODJH VRPHZKHUH LQ WKH YLFLQLW\ RI WKH PRXWK RI WKH 6KLVKLQDKXD 5LYHU SUREDEO\ RQ WKH ZHVWHUQ VLGH RI WKH ULYHU YDOOH\ RI WKH +XDOODJD )LJXHURD -LPHQH] GH (VSDGD &/;f 7KH &RFDPLOOD ZHUH DW SHDFH ZLWK WKH ;HEHURV ,QGLDQV DQ LQODQG JURXS EHWZHHQ WKH +XDOODJD DQG 0DUD"LRQ ULYHUV DQG KDG DVVLPLODWHG WR

PAGE 102

WKH ;HEHURV ,QGLDQV LQ GUHVV E\ WKH WLPH RI FRQWDFW 7KH PHQ WLHG WKH SHQLV XS ZLWK D VWULQJ SDVVHG DURXQG WKH ZDLVW DQG RFFDVLRQDOO\ ZRUH D VRUW RI VKRUW SRQFKR ZKLFK ZDV RSHQ DORQJ WKH VLGHV 7KH ZRPHQ ZRUH D VKRUW VNLUW SDPSDQLOODf ZKLFK H[WHQGHG IURP WKH ZDLVW WR WKH NQHHV )LJXHURD f 7KH &RFDPD PHQ FRQWLQXHG WR GUHVV DV WKH 2PDJXD GLG LQ UDWKHU ORRVH ORQJ VKLUWV EULJKWO\ SDLQWHG ZLWK YDULRXV G\HV 7KH &RFDPLOOD PD\ KDYH DVVLPLODWHG WR WKH XSODQG QRQFDQRH ;HEHURV ,QGLDQV LQ PRUH WKDQ GUHVV IRU D VXEn JURXS SHUKDSV D JURXS RI IDPLOLHV VHSDUDWLQJ IURP WKH PDLQ ERG\ RI WKH &RFDPLOOD ZHUH NQRZQ DV WKH 3DPEDGHTXHV 7KH\ PD\ KDYH H[SORLWHG WKH XSODQG IRUHVW ZHVW RI WKH ORZHU +XDOODJD 5LYHU MXVW DV WKH ;HEHURV GLG $IWHU FRQWDFW VRPH RI WKHVH &RFDPLOOD ZHUH DFWXDOO\ JURXSHG DW WKH PLVVLRQ RI ;HEHURV ILUVW LQ WKHLU RZQ DQQH[ 6DQ 3DEOR GH 3DPEDGHTXHV IRXQGHG LQ f DQG ODWHU DV D EDUULR LQ D UHORFDWHG ;HEHURV WKH SUHVHQW VLWH RI WKH WRZQ &KDQWUH \ +HUUHUD 1RWLFLDV $XWQWLFDV )LJXHURD f $QRWKHU JURXS ZKLFK PD\ KDYH ILVVLRQHG IURP WKH &RFDPLOOD DQG DERXW ZKLFK QRWKLQJ LV NQRZQ H[FHSW WKDW WKH\ OLYHG XSVWUHDP IURP 6DQWLDJR GH %RUMD SRVVLEO\ RQ WKH

PAGE 103

6DQWLDJR 5LYHU DQG WKXV ZHUH WKH ZHVWHUQPRVW 7XSLf WKDW WKH\ ZHUH GLYLGHG LQWR HQFRPLHQGDV EHIRUH DQG WKDW WKHLU ODQJXDJH ZDV 7XSLDQ ZHUH WKH ;LELWDRQD )LJXHURD 1RWLFLDV $XWQWLFDV f %RWK WKH &RFDPD DQG WKH &RFDPLOOD ZHUH OLYLQJ LQ YLOODJHV RQ WKH IORRGSODLQ ZKHQ ILUVW GHVFULEHG 7KH &RFDPD OLYHG ULJKW RQ WKH ULYHUEDQN -LPHQH[ GH (VSDGD /;;,,, &;/,9 )LJXHURD f 7KH &RFDPD ZHUH GHVFULEHG E\ 6DOLQDV /R\RODnV PHQ DV KDYLQJ D YHU\ SRSXODWHG ODQG ZLWK PRUH WKDQ SHRSOH ZHDULQJB UREHV DQG VKLUWV YHU\ GRFLOH RI JRRG GLVSRVLWLRQ DQG ZLOO -LPHQH] GH (VSDGD &;/,9f ,Q *DVSDU GH &XJLD ZKR VDZ WKHP EULHIO\ HVWLPDWHG WKHLU SRSXn ODWLRQ DW WR SHUVRQV DQG VDLG WKH\ KDG WKUHH YLOODJHV DORQJ WKH 8FD\DOL ZLWK D WRWDO RI KRXVHV 7KH ODUJHVW YLOODJH RI KRXVHV ZDV RQ WKH 6KLSLER IURQn WLHU WR WKH 6RXWK *URKV WKLQNV WKHVH PXVW KDYH EHHQ WKH &RQLER DQG QRW WKH 6KLSLERf 7KH &RFDPD SRSXODWLRQ LQ ZDV FRPSRVHG RI LQGLRV GH ODQ]D RU PDOHV ROG HQRXJK WR ILJKW )LJXHURD f ,W LV GLIILFXOW WR HYDOXDWH WKHVH SRSXODWLRQ ILJXUHV ,I WDNHQ OLWHUDOO\ &XJLDnV HVWLPDWH ZRXOG PHDQ WKDW HDFK &RFDPD ORQJ KRXVH KDG DERXW SHRSOH LQ LW

PAGE 104

7KH +XDOODJD &RFDPLOOD DYHUDJHG DERXW SHRSOH WR D KRXVH LQ EXW WKH\ PD\ KDYH EHHQ UHGXFHG E\ GLVHDVH WR VRPH H[WHQW E\ WKDW WLPH )LJXHURD f 7KH &RFDPLOOD SUREDEO\ GLG QRW H[FHHG SHUVRQV LQ SRSXODWLRQ HYHQ ZLWK WKH 3DPEDGHTXHV 7KHLU YLOODJH ZDV QRW UHSRUWHG DV EHLQJ HVSHFLDOO\ ODUJH DW FRQWDFW DQG WKH XVXDO QXPEHU RI ORQJ KRXVHV IRU D 7XSLDQ YLOODJH LQ WKLV DUHD VHHPV WR EH DURXQG ,Q WHUPV RI GHPRJUDSK\ ERWK JURXSV SUHVHQW VRPH DQRPDOLHV %\ WKH WLPH WKH &RFDPLOOD ZHUH FRXQWHG LQ )LJXHURD f WKHUH ZHUH RQO\ LGLRV GH ODQ]D DQG D WRWDO SRSXODWLRQ RI HYHQ ZLWK DW OHDVW RQH ORQJ KRXVH RI &RFDPD ZKR KDG FRPH EDFN IURP WKH 8FD\DOL DQG MRLQHG WKH &RFDPLOOD LQ 7KLV JLYHV D SRSXODWLRQ UDWLR RI ZRPHQ DQG FKLOGUHQ WKH 6SDQLVK FDOOHG WKHP WKH FKXVPDf SHU DGXOW PDOH 7KH PLVVLRQDULHV QRUPDOO\ PXOWLSOLHG WKH DGXOW PDOH SRSXODWLRQ E\ RU WR DUULYH DW SRSXODWLRQ HVWLPDWHV ,W VHHPV OLNHO\ WKDW PDQ\ FKLOGUHQ KDG GLHG RI LPSRUWHG GLVHDVHV EHWZHHQ DQG 7KH &RFDPLOOD KDG EHHQ YLVLWHG DV HDUO\ DV E\ WKH %RUMD 6SDQLVK DQG WKHUH ZDV D VHULRXV VPDOOSR[ HSLGHPLF DPRQJ WKH 0DLQDV ,QGLDQV DQG %RUMD 6SDQLVK DV HDUO\ DV )LJXHURD -LPPH] GH (VSDGD &/;f RQ WKH 0DUDQRQ 5LYHU

PAGE 105

DOWKRXJK WKHUH LV QR ZULWWHQ HYLGHQFH WKDW LW DIIHFWHG WKH +XDOODJD 5LYHU ,W VKRXOG DOVR EH UHPHPEHUHG WKDW 0R\R EDPED DQ LPSRUWDQW 6SDQLVK VHWWOHPHQW DORQJ WKH 0D\R 5LYHU KDG EHHQ RFFXSLHG IRU RYHU \HDUV E\ 'LVHDVHV VXFK DV VPDOOSR[ DIIHFWHG WKH FKLOGUHQ PRUH WKDQ WKH DGXOWV )LJXHURD &KDQWUH \ +HUUHUD f $OVR DIWHU &XJLDnV YLVLW WR WKH &RFDPD ZLWK 6SDQLVK VROGLHUV LQ DW OHDVW KDOI WKH &RFDPD GLHG EHIRUH RI ZKDW ZDV SUREDEO\ LQIOXHQ]D )LJXHURD f ,W VHHPV OLNHO\ WKDW WKH &RFDPLOOD ZRXOG KDYH VXIIHUHG VLPLODUO\ 7KH SRSXODWLRQ UDWLRQ PD\ KDYH EHHQ DFFXUDWH KRZHYHU 7KH &RFDPD FHUWDLQO\ SUDFWLFHG LQIDQWLFLGH UHJXODUO\ SUREDEO\ NLOOLQJ PRUH IHPDOHV WKDQ PDOHV &KDQWUH \ +HUUHUD f 7KH\ ZHUH VDLG E\ SULHVWV ZKR ZHUH IDPLOLDU ZLWK PDQ\ ,QGLDQ JURXSV WR KDYH IHZ FKLOGUHQ 7KH $ERULJLQDO 6XEVLVWHQFH (FRQRP\ 8QIRUWXQDWHO\ WKH GHVFULSWLRQ RI WKH DERULJLQDO VXEn VLVWHQFH HFRQRP\ RI WKH &RFDPD DQG &RFDPLOOD LV JURXSHG ZLWK WKDW RI WKH 2PDJXD LQ WKH +DQGERRN RI 6RXWK $PHULFDQ ,QGLDQV 0HWUDX[ f ,Q WKH FDVH RI WKH FURSV SODQWHG LW LV OLNHO\ WKDW WKH &RFDPD DQG WKH &RFDPLOOD

PAGE 106

ZDV EDVHG RQ WKH H[SORLWDWLRQ RI WKH IORRGSODLQ ODNH DQG ULYHU SURWHLQ VRXUFHV DQG IORRGSODLQ VRLOV 7KH &RFDPLOOD ZHUH UHSRUWHG WR H[SORLW WKH XSODQG IRUHVWV DQ HOHYDWLRQ GLIIHUHQFH RI SHUKDSV PHWHUVf GXULQJ WLPHV RI VFDUFLW\ LQ WKH ZLQWHU IORRGV DQG LW VHHPV OLNHO\ WKDW WKH &RFDPD GLG WKH VDPH 7KH &RFDPD ZHUH VDLG WR KDYH QR DOWXUD LQ WKHLU WHUULWRU\ DURXQG WKH XSVWUHDP PRXWK RI WKH 3XLQDKXD &DQDO 7KLV DUHD LV DOO IORRGHG LQ WKH ZLQWHU IURP )HEUXDU\ XQWLO 0D\ RU -XQH +RZHYHU LW LV SRVVLEOH WKDW WKH &RFDPLOOD GLG SODQW VRPH KLJK JURXQG )LJXHURD f )LHOGV ZHUH FOHDUHG DQQXDOO\ E\ VODVK DQG EXUQ WHFKQLTXHV ,W LV QRW NQRZQ KRZ RIWHQ ILHOGV ZHUH URWDWHG WR IRUHVW EXW WRGD\ WKH\ DUH QRW SODQWHG IRU PRUH WKDQ WZR WKUHH \HDUV LQ VXFFHVVLRQ 7KH EDVLF VWDSOH FURSV RI WKH &RFDPD DQG WKH &RFDPLOOD ZHUH SODQWDLQV VZHHW PDQLRF DQG FRUQ 6HFRQGDU\ VWDSOHV ZHUH SUREDEO\ VZHHW SRWDWRHV FDPRWHf WDUR PDQGLf EHDQV YDULRXV RWKHU WXEHUV VXFK DV FDUD DQG WD\DFDUD 'LVFRUHD VS DQG 6RODQXP VS UHVSHFWLYHO\f YDULRXV NLQGV RI VTXDVKHV SHDQXWV DQG SLQHDSSOHV 7KH PDMRU SDUW RI WKH FRUQ DQG PDQLRF SUREDEO\ ZHQW DV LW GRHV WRGD\ WR PDNH D PLOGO\ IHUPHQWHG EHHU ZKLFK LV D GLHWDU\ VWDSOH DQG KLJKO\ HVWHHPHG

PAGE 107

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f RU D PDQLRF SDQFDNH PHLR RU FDVDEHf ZKHQ WKH IORRG JRHV GRZQ 1RWLFLDV $XWHQWLFDV f 6RPH RI WKH PDQLRF XQGRXEWHGO\ ZDV VWRUHG LQ WKH IRUP RI PDQLRF IORXU IDULQDf WR ODVW RYHU WKH WLPH RI VFDUFLW\ LQ WKH ZLQWHU 7KH\ SUREDEO\ XVHG WKH WLSLSL WR VTXHH]H WKH MXLFHV RXW RI WKH PDQLRF SXOS DERULJLQDOO\ DV WKH\ GR WRGD\

PAGE 108

)LVKLQJ DQG KXQWLQJ ZDWHU PDPPDOV WXUWOHV DQG WXUWOH HJJV ZHUH WKH PDLQ VRXUFH RI SURWHLQ 7KH &RFDPLOOD ILVKHG GDLO\ DQG LW LV QRW UHSRUWHG WKDW WKH\ VWRUHG GULHG ILVK DV WKH\ GR WRGD\ 7KH\ GLG KRZHYHU VWRUH ULYHU WXUWOHV JDWKHUHG RQ WKH EHDFKHV LQ -XO\ DQG $XJXVW DV WKH\ ODLG WKHLU HJJV ZKHQ WKHUH ZDV D VXUSOXV 7KH WRROV XVHG IRU ILVKLQJ DQG KXQWLQJ LQYROYHG GHWDFKDEOHKHDGHG KDUSRRQV IRU WKH SDLFKH DQG WKH PDQDWHH YDFD PDULQDf DQG OLJKW VSHDUV IRU VPDOOHU ILVK 1RWLFLDV $XWQWLFDV f )RU ZDUIDUH DQG SHUKDSV IRU KXQWLQJ ODUJHU PDPPHOV D VSHDU WKURZHU HVWROLFDf ZDV XVHG &KDQWUH \ +HUUHUD f +RRNV WUDSV ZHLUV ODUJH SDOP ILEUH QHWV DQG ILVK SRLVRQV DUH UHJLRQDO FXOWXUDO FKDUDFWHULVWLFV EXW WKHUH LV QR LQIRUPDWLRQ RQ WKHLU XVH VSHFLILFDOO\ DPRQJ WKH &RFDPLOOD DQG &RFDPD 6RFLDO 2UJDQL]DWLRQ 7KH SUHFRQTXHVW VRFLDO RUJDQL]DWLRQ RI WKH &RFDPD DQG WKH &RFDPLOOD LV XQNQRZQ ,W FDQQRW EH DVVXPHG WKDW WKH\ ZHUH RUJDQL]HG LQ PRLHWLHV DV WKH 2PDJXD PD\ KDYH EHHQ DOWKRXJK WKHUH DUH VRPH ELWV RI LQIRUPDWLRQ WKDW OHDYH WKH SRVVLELOLW\ RSHQ FI )LJXHURD f 7KH &RFDn PLOOD DV PHQWLRQHG DERYH OLYHG LQ YLOODJHV RI ORQJKRXVHV

PAGE 109

HDFK ZLWK DV PDQ\ DV SHRSOH LQ 7KH RULJLQDO SRSXODWLRQ RI WKHVH KRXVHV PD\ KDYH EHHQ DV KLJK DV SHRSOH LQ LI &XJLDnV GDWD RQ WKH &RFDPD DW WKDW WLPH LV FRUUHFW 7KH 2PDJXD KRXVHV DYHUDJHG SHRSOH 6WHZDUG f ,I WKH VRFLDO RUJDQL]DWLRQ RI WKH &RFDPLOOD WRGD\ ZHUH WUXH LQ WKH SDVW HDFK RI WKH KRXVHV ZRXOG KDYH EHHQ FRPSRVHG RI SDWULOLQHDOO\ UHODWHG PHQ DQG WKHLU ZLYHV DQG FKLOGUHQ 1XPEHUV RI UHVLGHQWV LQ HDFK KRXVH ZRXOG KDYH YDULHG GUDVWLFDOO\ GHSHQGLQJ RQ WKH VWUHQJWK RI WKH GRPLQDQW PDOH UHVLGHQW QRW QHFHVVDULO\ WKH ROGHVW UHVLGHQWf +RXVHV QHDU HDFK RWKHU PD\ KDYH DOVR EHORQJHG WR WKH VDPH SDWULOLQHDO VHJPHQW DQG HDFK SDWULn OLQHDJH RU VDQJUH DV LW LV H[SUHVVHG WRGD\ ZRXOG KDYH EHHQ H[RJDPRXV 0DULWDO UHVLGHQFH ZRXOG KDYH EHHQ SDWUL ORFDO XQOLNH PRVW 7XSLDQ JURXSV LQ %UD]LO EXW LQ DFFRUGn DQFH ZLWK WKH JHQHUDO SDWWHUQV LQ WKH XSSHU $PD]RQ 7KH &RFDPD DQG &RFDPLOOD NLQVKLS V\VWHP ZDV DOPRVW FHUn WDLQO\ ELIXUFDWH PHUJLQJ MXGJLQJ IURP WRGD\nV WHUPLQRORJ\ LQ WKH &RFDPD ODQJXDJH ZLWK ,URTXRLV FRXVLQ WHUPV DQG ZLWK ELODWHUDO FURVVFRXVLQ PDUULDJH LQ D ORRVH VHQVH ZKLFK LQFOXGHG LQWHUJHQHUDWLRQDO PDUULDJH EHWZHHQ D PDQ DQG KLV FURVVFRXVLQnV GDXJKWHU 7KLV ODVW IHDWXUH RI WKH DERULJLQDO PDUULDJH V\VWHP ZDV WKH RQO\ RQH WR EH PHQWLRQHG E\ WKH SULHVWV )LJXHURD f

PAGE 110

(DFK KRXVH RU JURXS RI FORVHO\ UHODWHG KRXVHV SUREDEO\ KDG DQ LQIRUPDO OHDGHU LQ FHUWDLQ DIIDLUV ZKRP WKH 6SDQLVK FDOOHG WKH FDFLTXH EXW WKH FRPPXQLW\ KDG D QXPEHU RI VXFK FDFLTXHV QRQH RI ZKLFK KDG FRQWURO RYHU WKH FRPPXQLW\ DV D ZKROH DQG QRQH RI ZKLFK KDG WKH SRZHU WR FRPPLW HYHQ KLV RZQ KRXVHKROG IROORZHUV WR DFWLYLWLHV ZKLFK GLG QRW DJUHH ZLWK WKHP )LJXHURD f 7KH HDUO\ 6SDQLVK ZHUH ORRNLQJ IRU OHDGHUV RQ (XURSHDQ PRGHOV DQG VWDWHPHQWV VXFK DV WKDW RI -XDQ 6DOLQDV /R\ROD WKDW WKH &RFDPD ZHUH REHGLHQW DQG UHVSHFWIXO RI WKHLU FKLHIV -LPHQH] GH (VSDGD /;;;,,f KDV WR EH XQGHUVWRRG LQ D YHU\ ORRVH VHQVH /DWHU 6SDQLVK H[SORUHUV PDUYHOHG DW WKH DFHSKDORXV QDWXUH RI WKH SROLWLFDO V\VWHP DQG ZRQGHUHG ZK\ WKH &RFDPD DQG &RFDPLOOD OLYHG LQ FRPPXQLWLHV DW DOO 7KH\ FRQFOXGHG WKDW LW ZDV SULPDULO\ IRU UHDVRQV RI GHn IHQVH DQG VRFLDO OLIH DQG QRW EHFDXVH WKH\ ZHUH SROLWLFDOO\ FHQWUDOL]HG )LJXHURD f &RPPXQLWLHV SUREDEO\ ILVVLRQHG E\ HQWLUH KRXVHKROGV RU VHJPHQWV LQFOXGn LQJ PRUH WKDQ RQH KRXVHKROG WKXV UHPRYLQJ HQWLUH VDQJUHV IURP WKH FRPPXQLW\ )LJXHURD UHSRUWHG WKDW ZKHQ RQH RI WKH &RFDPD FRPPXQLWLHV ILVVLRQHG LQ WKDW D FDFLTXH RQH RI WKH JUHDWHVW RI WKH &RFDPD ZLWK WKH SHRSOH ZKR UHFRJQL]HG KLP ZDV WKH ILVVLRQLQJ VRFLDO XQLW

PAGE 111

&KDQWUH LQGLFDWHV WKDW PDUULDJH DPRQJ WKH &RFDPD DQG &RFDPLOOD ZDV QRW YHU\ VWDEOH ZLYHV IUHTXHQWO\ JRLQJ EDFN WR WKHLU RZQ KRXVHV +H DOVR LPSOLHV WKDW WKH\ SUDFWLFHG SRO\J\Q\ &KDQWUH \ +HUUHUD f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f 'LHJR 9DFD GH 9HJD JURXSHG WKH &RFDPLOOD ZLWK WKH 0DLQDV ,QGLDQV LQ D GHVFULSWLRQ RI WKH GLYLVLRQ RI ODERU DQG LW LV LPSRVVLEOH WR NQRZ WR ZKLFK JURXS KH ZDV UHIHUULQJ ZKHQ KH VDLG WKH IROORZLQJ 7KH PHQ RFFXS\ WKHPVHOYHV LQ KXQWLQJ LQ WKH IRUHVW DQG LQ ILVKLQJ DQG PDNLQJ WKHLU FDQRHV DQG WUDYHOLQJ RQ WKH ULYHU LQ WKHP IURP SODFH WR DQRWKHU DQG WKH ZRPHQ LQ SODQWLQJ DQG FOHDQLQJ WKH ILHOGV PDNLQJ WKUHDG ZHDYLQJ DQG PDNLQJ FORWKHV WR SDLQW -LPHQH] GH (VSDGD &;/9 WUDQVODWLRQ PLQHf

PAGE 112

,Q FXUUHQW SUDFWLFH WKH ZRPHQ ZRUN ZLWK WKH PHQ LQ WKH ILHOGV DQG KHOS FDUU\ DJULFXOWXUDO SURGXFWV *LYHQ WKH VRFLDO RUJDQL]DWLRQ RI WKH &RFDPD DQG &RFD PLOOD LQ WHUPV RI LQWUDYLOODJH KRXVHKROG UHODWLRQV LW LV H[WUHPHO\ SUREDEO\ WKDW HDFK YLOODJH ZDV DXWRQRPRXV DQG RQO\ NLQVKLS UHODWLRQV OLQNHG WKHP 7KLV VKRXOG EH HPSKDVL]HG EHFDXVH 0HWUDX[ f VHHPV WR LGHQWLI\ WKH &RFDPD ZLWK WKH 2PDJXD LQ WHUPV RI VRFLDO RUJDQL]DWLRQ +RZHYHU IURP HDUO\ DFFRXQWV RI WKH 2PDJXD WKH\ ZHUH PXFK PRUH GHQVHO\ VHWWOHG DQG PXFK PRUH SROLWLFDOO\ FHQWUDOL]HG WKDQ WKH &RFDPD (GPXQVRQ $FXQD f ,Q WHUPV RI LQWHUYLOODJH UHODWLRQV DQG LQWHUHWKQLF UHODWLRQV LW VHHPV OLNH WKDW WKH &RFDPD DQG &RFDPLOOD ZHUH DOZD\V IULHQGO\ WRZDUG HDFK RWKHU EXW SUDFWLFHG ZDUIDUH RXWVLGH WKH HWKQLF JURXS 9DFD GH 9HJD UHSRUWHG D JHQHUDO WUDGH LQ FRWWRQ FORWK DQG SDOP ILEUH PRVTXLWR QHWV FDFKL EDQJRV f IRU WKH &RFDPLOOD DUH DQG WKH 0DLQDV DUHD DQG LW LV NQRZQ WKDW WKH &RFDPLOOD PDGH VXFK WKLQJV -LPHQH] GH (VSDGD &;/9, 6WHZDUG f 7KH H[WHQW WR ZKLFK &RFDPD DQG &RFDPLOOD ZDUIDUH SDWWHUQV DV FKURQLFOHG E\ WKH HDUO\ -HVXLW PLVVLRQDULHV ZHUH DERULJLQDO KRZHYHU LV GLIILFXOW WR DVVHVV 7KH HDUOLHVW PLVVLRQDULHV UHSRUWHG WKDW WKH &RFDPD ZHUH DW ZDU ZLWK WKH &KLSHR SUREDEO\ WKH

PAGE 113

PRGHUQ 6KLSLERf )LJXHURD f 6DOLQDV /R\ROD D KXQGUHG \HDUV HDUOLHU RQ WKH RWKHU KDQG VSRNH RI KRZ GRFLOH WKH &RFDPD ZHUH DQG KH KDG QR SUREOHP ZLWK WKHP LQ 7KH\ HYHQ DFWHG DV FDQRHPHQ IRU KLP WR WDNH KLP RQ XS WKH 8FD\DOL 5LYHU LQWR 3DQRDQ WHUULWRU\ SUREDEO\ IHUU\LQJ KLP DV IDU DV WKH $JXD\WLD 5LYHU RU SHUKDSV HYHQ IDUWKHU -LPHQH] GH (VSDGD /;;,9 /;;;,, &;/,9f 9DFD GH 9HJD LQ ZKR OLYHG LQ %RUMD DQG VKRXOG KDYH NQRZQ PDNHV QR PHQWLRQ RI &RFDPD&RFDPLOOD UDLGV RQ WKH 0DLQDV ,QGLDQV ZKR ZHUH LQ WKH SURFHVV RI EHLQJ SODFHG RQ HQFRPLHQGDV E\ WKH 6SDQLVK -LPHQH] GH (VSDGD &;/,, &/;f 7KH &RFDPLOOD OLYHG RQ WKH ZHVWHUQ VLGH RI WKH +XDOODJD 5LYHU YDOOH\ ERWK EHIRUH DQG DIWHU WKH\ ZHUH PLVVLRQL]HG EHFDXVH WKH\ IHDUHG DWWDFN IURP WKH LQODQG JURXSV RQ WKH RWKHU VLGH RI WKH ULYHU 7KHVH JURXSV ZHUH KRVWLOH DV ODWH DV DQG FRQVLVWHG RI WKH VRFDOOHG 0D\RUXQD %DUEXGRf 3DQRDQV WR WKH VRXWK RI WKH &RFDPLOOD DQG WKH $JXDQR &KDPLFXUR JURXSV WR WKH QRUWK )LJXHURD f %DVHG RQ WKH DERYH HYLGHQFH LW VHHPV OLNHO\ WKDW &RFDPD DQG &RFDPLOOD ZDUIDUH SDWWHUQV LQFOXGLQJ KHDGn KXQWLQJ ZHUH DERULJLQDO EXW WKDW WKH\ ZHUH DJJUDYDWHG E\ WKH 6SDQLVK SUHVHQFH :KDWHYHU WKH H[WHQW RI DERULJLQDO

PAGE 114

ZDUIDUH &RFDPD&RFDPLOOD KHDGKXQWLQJ UDLGV ZKLFK WHUURUL]HG WKH ULYHU H[SORUDWLRQV RI WKH WK FHQWXU\ PLVVLRQDULHV RQ WKH 0DUDWQ 5LYHU DQG ZKLFK JDYH WKH WZR JURXSV WKH QDPH RI FRUVDLUV ZHUH LQFUHDVHG E\ WKH SUHVHQFH RI (XURSHDQ LURQ WRROV ,Q VL[ WR VHYHQ GD\V WKURXJK D VHULHV RI FDQDOV ZLWK WZR SRUWDJHV WKH &RFDPD ZRXOG SDVV IURP WKH 8FD\DOL 5LYHU WR WKH +XDOODJD 5LYHU ZLWK FDQRHV GXULQJ WKH IORRG VHDVRQ SUREDEO\ UHDFKLQJ WKH +XDOODJD WKURXJK WKH 6KLVKLQDKXD 5LYHUnrn 2QFH RQ WKH +XDOODJD WKH &RFDPD ZRXOG MRLQ WKH &RFDPLOOD DQG WUDYHO GRZQ WR WKH 0DU£QRQ 5LYHU DQG WR WKH 3DVWD]D 5LYHU KXQWLQJ KHDGV DQG LURQ WRROV DQG FDUU\LQJ DZD\ RWKHU ,QGLDQV )LJXHURD &KDQWUH \ +HUUHUD f 7KH\ ZHUH HVSHFLDOO\ IRQG RI DWWDFNLQJ WKH 0DLQDV ,QGLDQV )LJXHURD f ,W LV VLJQLILFDQW WKDW LQ WKH 0DLQDV ,QGLDQV ZHUH WKH RQO\ ,QGLDQV LQ WKH UHJLRQ ZKR KDG WRROV KDYLQJ EHHQ LQ GLUHFW FRQWDFW ZLWK WKH 6SDQLVK VLQFH )LJXHURD -LPHQH] GH (VSDGD &/,9f ,W VKRXOG DOVR EH HPSKDVL]HG WKDW E\ WKH WLPH WKH &RFDPLOOD DQG &RFDPD ZHUH NQRZQ WKH 6SDQLVK KDG EHHQ LQ QHDUE\ SDUWV RI WKH &HMD ]RQH IRU QHDUO\ D KXQGUHG \HDUV .QRZQ ZHDSRQV RI ZDUIDUH IRU WKH &RFDPD DQG &RFDPLOOD LQFOXGH WKH VSHDU ZLWK VSHDU WKURZHU HVWOLFDf SDOPZRRG

PAGE 115

ODQFHV GHFRUDWHG VKLHOGV RI FDQH SDOPZRRG DQG PDQDWHH KLGH DQG ZDU FOXEV PDFDQDf EXW QRW WKH ERZ DQG DUURZ &KDQWUH \ +HUUHUD f 3DOPZRRG NQLYHV ZHUH SUREDEO\ XVHG $GRUQPHQW 6RPH RI WKH PDWHULDO FXOWXUH RI SHUVRQDO DGRUQPHQW ZKLFK FDQ EH SLHFHG WRJHWKHU LV IRXQG LQ 6DOLQDV /R\RODnV GHVFULSWLRQ 7KH &RFDPD XVHGB FRWWRQ FORWKHV KLJKO\ SDLQWHG ZLWK EUXVKHV MHZHOU\ RI JROG DQG RI VLOYHU ZLWK ZKLFK WKH\ DGRUQHG WKHLU SHUVRQV SODWHV RQ WKHLU EUHDVWV DQG RQ WKH ZULVWV RI WKH DUP SLHFHV RI JROG DQG VLOYHU KXQJ IURP WKH QRVH DQG HDUV ZLUHV RI VLOYHU RQ WKHLU KHDGV OLNH WKH KRRSV RI VLHYHV JUHDW SOXPDJH -LPHQH] GH (VSDGD /;;;,, WUDQVODWLRQ PLQHf &XJLD UHSRUWHG WKDW WKH &RFDPD LQ WKH WK FHQWXU\ ZRUH ODEUHWV RI EXOOHWV DQG EHOW EXFNOHV IRU ZKLFK WKH\ WUDGHG WKH 6SDQLVK VROGLHUV HODERUDWH UREHV FDPLVHWDVf D UXLQRXV WUDGH ZKLFK WKH\ VRRQ VWRSSHG 7KH\ DOVR SHUIRUDWHG WKHLU ORZHU OLSV WR KDQJ SHQGDQWV RI OHDWKHU ZLWK EHDGV DWWDFKHG IURP WKHP EDUEDGRVf 1RWKLQJ LV NQRZQ VSHFLILFDOO\ DERXW &RFDPD DQG &RFDPLOOD ERG\ SDLQWLQJ DOWKRXJK WKH\ VWLOO XVH ZRRGHQ VWDPSV DQG JHQLSD G\H KXLWRf RQ FHUWDLQ RFFDVLRQV

PAGE 116

,GHRORJ\ DQG &XVWRP 7KH LGHRORJLFDO VXSHUVWUXFWXUHV DQG YDOXH V\VWHP ZKLFK UDWLRQDOL]HG WKH VRFLRHFRQRPLF V\VWHP DUH RQO\ KLQWHG DW E\ WKH HDUO\ OLWHUDWXUH 7KH PLVVLRQDULHV ZHUH FRQYLQFHG WKDW WKH ,QGLDQV KDG QR V\VWHP DW DOO WKDW WKH\ ZHUH XQJRYHUQHG EUXWHV LQ WKH WHUPV RI WKH WLPH WKDW WKH\ KDG QR SROLFLD ,Q D OHWWHU WR WKH -HVXLW KHDGn TXDUWHUV LQ )DWKHU /XFHUR WKH PLVVLRQDU\ ZKR IRXQGHG 6DQWLDJR GH /DJXQDV RQ WKH +XDOODJD 5LYHU FDOOHG WKH ,QGLDQV 6WROLG DQLPDOV ZLWKRXW JRYHUQPHQW EHFDXVH WKH\ QHYHU UHFRJQL]HG D SULQFH )LJXHURD f 7KXV WKH\ ZHUH QRW GLVSRVHG WR PDNH VHQVH RI ,QGLDQ FXOWXUH 7KH DFHSKDORXV SROLWLFDO VWUXFWXUH KLQWV DW D SKLORVRSK\ RI UDWKHU VWURQJ SHUVRQDO RU IDPLO\ LQGHSHQGHQFH ZLWKLQ WKH ORRVH FRQILQHV RI WKH FRPPXQLW\ DQG KRXVHKROG VRFLDO VWUXFn WXUH )LJKWV RU IHXGV EHWZHHQ LQGLYLGXDOV ZHUH D IDPLO\ PDWWHU DQG UHYHQJH ZDV WKH MRE RI WKH LQGLYLGXDO RU QHDU NLQVPHQ LI GHDWK UHVXOWHG )LJXHURD f 7KHUH ZHUH QR FRPPXQLW\ PHDQV RI UHVROYLQJ GLVSXWHV %HOLHIV DERXW VLFNQHVV DQG GHDWK VKRZ WKH VDPH IHHOLQJ RI VRFLDO LQGHSHQGHQFH $OO VLFNQHVV ZDV EHOLHYHG WR EH VXSHUQDWXUDO DQG PRVW LOOQHVV RULJLQDWHG ZLWKLQ WKH VRFLDO V\VWHP EHLQJ FDXVHG E\ SHUVRQV ZKR ZLVK RQH LOO WKURXJK

PAGE 117

WKH DLG RI VKDPDQV &KDQWUH f )HDU DQG GLVWUXVW RI QHLJKERUV ZDV D VWURQJ PRWLYH WR PRYH RQHnV ORFDWLRQ &KDQWUH \ +HUUHUD f :LWFKFUDIW ZDV DOVR D SULPDU\ PRWLYH IRU JRLQJ WR ZDU 1RWLFLDV $XWQWLFDV 6f &XULQJ LQYROYHG D VWDJH RI GLDJQRVLV ZLWK WKH DLG RI WKH KDOOXFLQRJHQLF GUXJV $\DKXDVFD %DQLVWHULRSVLV 6Sf DQGRU 7R 'DWXUD 6Sf DQG D VWDJH RI FDVWLQJ RXW WKH KDUPIXO DJHQW GRQH E\ D 6KDPDQ ZKR VXFNV RXW WKH KDUP VRPHn WLPHV UHSUHVHQWHG E\ DQ REMHFW 6LFN SHUVRQV ZHUH VXQJ RYHU FRQVWDQWO\ E\ WKH VKDPDQV DQG E\ QHDUE\ UHODWLYHV )LJXHURD f 7KH 6SDQLVK FDOOHG WKHVH FXULQJ VRQJV FDQWRV 7KH &RFDPLOOD NQRZ WKHP WRGD\ DV LFDURV (DFK GLVHDVH KDG LWV RZQ LFDURV 1RWLFLDV $XWQWLFDV f ,W LV QRW FOHDU IURP WKH OLWHUDWXUH WKDW WKH &RFDPD DQG &RFDPLOOD EHOLHYHG LQ WZR VSLULWV DV VWDWHG E\ 0HWUDX[ f DQG KLV VRXUFH LV QRW FLWHG ,W LV FOHDU WKDW WKH &RFDPD EHOLHYHG WKDW WKH VSLULW FRXOG OHDYH WKH ERG\ VKDPDQDV ZHUH DEOH WR DOORZ LW WR GR VR DW ZLOO )LJXHURD f $W GHDWK WKH VSLULW FRXOG LQKDELW HLWKHU DQ DQLPDO ERG\ RU DQRWKHU KXPDQ ERG\ 5HLQFDUQDWLRQ EHOLHIV DUH VWURQJO\ LPSOLHG )LJXHURD f ,Q ODWHU FRORQLDO WLPHV DQG GXULQJ WKH 5HSXEOLFDQ \HDUV WKH &RFDPD FDPH WR

PAGE 118

EH NQRZQ WR KDYH D JUHDW PDQ\ SODFH VSLULWV DQLPDO VSLULWV DQG YDULRXV PDOHYROHQW GHPRQV LQ WKHLU ZRUOGYLHZ ,W LV QRW NQRZQ KRZ PDQ\ RI WKHVH DUH DERULJLQDO 7KH YDOXH V\VWHP ZKLFK DOORZHG VRFLDO UDQNLQJ LV KLQWHG DW E\ )LJXHURD LQ GLVFXVVLQJ WKH DIWHUOLIH RI VSLULWV 7KH ODUJHU PRUH JHQHURXV DQLPDOV UHFHLYHG WKH VSLULWV RI WKH YDOLHQW WKH GLOLJHQW WKH ZRUNHUV DQG WKH ZRPHQ ZKR EHVW VHUYH WKHLU KXVEDQGV DQG DPRQJ WKHP WKH PRVW UHVSHFWHG NLOOHUV )LJXHURD 1RWLFLDV $XWQWLFDV f 'HDWK ZDV RI WZR NLQGV )URP ZKDW PLJKW EH FDOOHG D OLJKW GHDWK LQFOXGLQJ H[WUHPH VLFNQHVV FDOOHG GHDWKf RQH FRXOG UHWXUQ $W WKLV SRLQW WKH VSLULW ZDQGHUV LQ WKH UHDOPV RI WKH GHDG LQ ZKLFK WKHUH PD\ EH KRXVHV DQG SHRSOH EXW FDQ EH FDOOHG EDFN E\ UHODWLYHV )LJXHURD f 7KLV EHOLHI LV VWLOO H[WDQW ZLWK WKH &RFDPLOOD DQG WKH\ FRQVLGHU LW D JUDYH HUURU WR FU\ ZLWKLQ WKH ILUVW RU PLQXWHV DIWHU WKH GHDWK RI D IDPLO\ PHPEHU &U\LQJ JLYHV VRFLDO UHFRJQLWLRQ WR WKH GHDWK DQG SUHYHQWV WKH VSLULW IURP UHDQLPDWLQJ WKH ERG\ 7KH VHFRQG NLQG RI GHDWK LV SHUPDQHQW %XULDO ZDV LQ WZR VWDJHV 7KH ERG\ RI WKH GHDG SHUVRQ ZDV GRXEOHG WKH PRXWK DQG H\HV ZHUH VHDOHG DQG WKH ERG\

PAGE 119

ZDV SODFHG LQ D ODUJH FHUDPLF XUQ DORQJ ZLWK WKH SULQFLSDO SRVVHVVLRQV RI WKH GHFHDVHG 7KH XUQ ZDV VHDOHG E\ FRYHUn LQJ ZLWK D VPDOOHU XUQ DQG ZDV EXULHG XQGHU WKH IORRU RI WKH KRXVH $IWHU RQH \HDU WKH XUQ ZDV GXJ XS WKH ERQHV ZHUH FOHDQHG DQG SDLQWHG DQG D FHUHPRQ\ WRRN SODFH LQ ZKLFK D TXDQWLW\ RI EHELGD SUHVXPDEO\ PDVDWRf ZDV FRQn VXPHG ZKLFK ZDV VXSSRVHG WR GU\ WKH WHDUV 7KH QHDU UHODWLYHV FULHG DQG WKH RWKHU JXHVWV GDQFHG $IWHUZDUGV WKH XUQ ZDV UHEXULHG DQG IRUJRWWHQ HYHQ WR WKH QDPHV RI WKH GHFHDVHG )LJXHURD &KDQWUH \ +HUUHUD 1RWLFLDV $XWQWLFDV f 7KLV FHUHPRQ\ LV VWLOO RFFDVLRQDOO\ VHHQ DPRQJ WKH &RFDPLOOD WKRXJK ZLWK &DWKROLF WUDSSLQJV DQG ZLWKRXW SK\VLFDOO\ UHPRYLQJ WKH ERG\ IURP LWV JUDYH LQ WKH &DWKROLF JUDYH\DUG 7KHUH LV VRPH LQGLFDWLRQ WKDW QDWXUDO SKHQRPHQD ZHUH VHHQ DV PHWDSKRUV RI HDUWKO\ VRFLDO OLIH 7KH &RFDPD VDZ LQ WKXQGHU WKH VRXQGV RI DVVDXOWV RQ KRXVHV LQ ZDUIDUH DQG WKH H[KDODWLRQV ZKLFK KHDGV PDNH ZKHQ WKH\ DUH EHLQJ FXW RII 1RWLFLDV $XWQWLFDV f 7KH &RFDPD&RFDPLOOD ULWXDO F\FOH LV ODUJHO\ XQNQRZQ $ PDMRU LQWHJUDWLYH ULWXDO ZDV WKH GDQFH DURXQG WKH KHDGV RI VODLQ HQHPLHV ZLWK PXFK PDVDWF GULQNLQJ 1RWLFLDV $XWQn WLFDV f 7KHUH ZDV XQGRXEWHGO\ LQWHUFRPPXQLWY

PAGE 120

IHDVWLQJ DQG HVSHFLDOO\ LQWHUHWKQLF IHDVWLQJ IRU DOOLHV DQG IULHQGO\ WULEHV 1RWLFLDV $XWHQWLFDV f 7KH FHUHPRQ\ GHVFULEHG E\ &KDQWUH f RI KDLUn FXWWLQJ RI FKLOGUHQ ZKLFK KH LPDJLQHG WR FRQIHU QRELOLW\ LV VWLOO SUDFWLFHG DQG LV D ULWH RI SDVVDJH ,W WDNHV SODFH ZLWK PDOH FKLOGUHQ ZKR KDYH EHJXQ WR WDON DQG ZKR KDYH WKXV EHFRPH IXOO\ KXPDQ 7KH FHUHPRQ\ WRGD\ LV QRW HODERUDWH DQG PRVW RI WKH WUDSSLQJV GHVFULEHG E\ 0HWUDX[ f DUH QRZ DEVHQW

PAGE 121

1RWH A7KH 6KLVKLQDKXD LV D OLNHO\ SRVVLELOLW\ EHFDXVH WKH &RFDPLOOD ZHUH ORFDWHG QHDU LWV PRXWK DW FRQWDFW DQG HYHQ WRGD\ WKH SHRSOH OLYLQJ DURXQG LWV PRXWK NQRZ WKH WUDLO WR WKH 8FD\DOL IURP 6DQ $QWRQLR GH 6KLVKLQDKXD 7KH\ SDVV WKHUH IRU ILHVWDV RQ RFFDVLRQ 7KH SRUWDJHV PD\ KDYH EHHQ UDWKHU ORQJ

PAGE 122

&+$37(5 9 &217$&7f§7+( ),567 )257< <($56 7KH &RFDPLOOD SUREDEO\ EHJDQ WR IHHO WKH (XURSHDQ SUHVHQFH ORQJ EHIRUH WKH\ ZHUH VHULRXVO\ DIIHFWHG E\ WKH GLVDVWURXV (XURSHDQ DWWHPSWV WR FRORQL]H WKH +XDOODJD DUHD $ORQ]R 0HUFDGLOOR RQH RI +HUQDQGR 3L]DUURnV FDSWDLQV KDG PDGH DQ HQWU\ LQWR WKH ORZODQG IRUHVW DV HDUO\ DV M ,I &LH]DnV UHSRUW LV UHOLDEOH KRZHYHU WKH H[SHGLWLRQ SURn FHHGHG GRZQ WKH PLGGOH +XDOODJD YDOOH\ XQWLO EORFNHG E\ WKH QDUURZ ULYHU FDQ\RQ ZLWK VZLIW UDSLGV FDOOHG WKH 3RQJR GH $JXLUUH $JXLUUHnV JDWH LQ 4XHFKXDf EHORZ WKH PRXWK RI WKH 0D\R 5LYHU 7KH\ WKHQ FURVVHG RYHU WR WKH ZHVW VKRUH RI WKH +XDOODJD DQG IROORZHG WKH ORZ PRXQWDLQ UDQJH ZKLFK GLYLGHV WKH 0D\R DQG 3DUDQDSXUD 5LYHU GUDLQDJHV DOO WKH ZD\ WR WKH 0DUDQRQ 5LYHU 7ZHOYH OHDJXHV EHIRUH WKH 0DUDQRQ ZKHUH WKH KLOOV EHJLQ WR JHW ORZHU WKH\ PDGH FRQWDFW ZLWK WKH 0DLQDV ,QGLDQV ZKR ZHUH UHSRUWHG WR EH IULHQGO\ &LH]D GH /HRQ f $W OHDVW RQH SDUW\ OHDYLQJ WKH EDVH FDPS 0HUFDGLOOR HVWDEOLVKHG ZLWK WKH 0DLQDV MRXUQH\HG GD\V GRZQVWUHDP RQ WKH 0DUDQRQ 5LYHU DQG DOPRVW FHUWDLQO\

PAGE 125

PDGH FRQWDFW ZLWK WKH 7XSLDQ 2PDJXD EHORZ WKH 1DSR 5LYHU DQG SHUKDSV ZLWK WKH $\]XDUH RU
PAGE 126

,QGLDQV ZDUULRUV DQG WKHLU IDPLOLHV SDVVHG WKURXJK WKH ORZHU +XDOODJD UHJLRQ 7KHVH SHRSOH ZHUH DOPRVW FHUWDLQO\ 7XSLQDPE£ IURP WKH %UD]LOLDQ FRDVW DQG WKH\ VSRNH D ODQJXDJH YHU\ VLPLODU WR WKH &RFDPLOOD :KHQ WKH\ UHDFKHG 0R\REDPED WKH\ WROG WKH 6SDQLVK DQ LQFUHGLEOH WDOH 7KH\ VDLG WKH\ KDG OHIW WKH %UD]LOLDQ FRDVW VRPH WHQ \HDUV EHIRUH ZLWK SHRSOH LQFOXGLQJ WZR 3RUWXJXHVH SHUKDSV GHVHUWHUV IURP WKH 3RUWXn JXHVH 0LOLWDU\ %ROODHUW f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f 8UVXDnV IDWHIXO H[SHGLWLRQ LQ SDVVHG E\ WKH &RFDPLOOD DQG ZDV FDUU\LQJ VRPH RI WKH PHQ RI WKH 9LUD]X PLJUDWLRQ DV LQWHUSUHWHUV EXW QR PHQWLRQ LV PDGH RI WKH &RFDPLOOD -LPHQH] GH (VSDGD &;;;,;f 7KH H[SHGLWLRQ RI -XDQ GH 6DOLQDV /R\ROD PD\ KDYH H[n SORUHG WKH ORZHU SDUW RI WKH +XDOODJD LQ DQG LW LV

PAGE 127

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f 7KLV ZDV WKH ILUVW DQG ODVW WLPH WKH &RFDPD RU WKH &RFDPLOOD ZRXOG EH VSRNHQ ZHOO RI IXWXUH DFFRXQWV ZRXOG HPSKDVL]H WKHLU FRQWUDULQHVV 1HDUO\ IRXU JHQHUDWLRQV RI &RFDPLOOD DQG &RFDPD JUHZ XS EHIRUH WKH QH[W LQWUXVLRQV RI 6SDQLVK RQ WKH +XDOOD 5LYHU DUH UHSRUWHG ,Q 'LHJR 9DFD GH 9HJD KDG HVWDEOLVKHG D WRZQ EHORZ WKH QDUURZ FDQ\RQ DQG VZLIW UDSLG FDOOHG WKH 3RQJR GH 0DQVHULFKH 3DUURW *DWH LQ 4XHFKXDf RQ WKH 0DUDQRQ 5LYHU +H FDOOHG LW 6DQWLDJR GH %RUMD +H KDG EHHQ PDNLQJ HQWUDGDV LQ WKH XSSHU 0DUDQRQ UHJLRQ VLQFH DQG DV QRWHG DERYH RWKHUV KDG EHHQ PDNLQJ UDLGV RQ WKH 0DLQDV VLQFH -LPHQH] GH (VSDGD &/,9 &KDQWUH \ +HUUHUD f 7KH 0DLQDV ,QGLDQV KDG EHHQ UHGXFHG WR D IHZ KXQGUHG LQGLYLGXDOV DQG WKHVH ,QGLDQV VR IULHQGO\

PAGE 128

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f 7KH %RUMHUIRV EDUULFDGHG WKHPVHOYHV LQ WKH FKXUFK DQG UHSHOOHG WKH DWWDFN -LPHQH] GH (VSDGD &/97,, )LJXHURD 1RWLFLDV $XWQWLFDV f &KDQWUH VD\V WKLV XSULVLQJ ZDV LQ EXW KH LV DOPRVW FHUWDLQO\ LQ HUURU DV KH LV WKH RQO\ VRXUFH WR JLYH WKLV DV WKH \HDU :KDW LV FHUWDLQ LV WKDW 6SDQLVK UHSULVDOV ZHUH VWLOO JRLQJ RQ LQ 7KH 6SDQLVK UHDFWHG E\ VHQGLQJ PRUH VROGLHUV WR UHn FDSWXUH IXJLWLYH 0DLQDV UHEHOV IURP WKH ODNHV DQG IRUHVWV DQG E\ VHQGLQJ IRU -HVXLW SULHVWV WR KHOS SDFLI\ DQG WR EDSWL]H WKH ,QGLDQV ,QWHUHVWLQJO\ WKH -HVXLWV ZHUH QRW WKH ILUVW SULHVWV LQ %RUMD $V HDUO\ DV D )UDQFLVFDQ SULHVW )UDQFLVFR 3RQFH GH /HRQ KDG EHHQ EDSWL]LQJ 0DLQDV

PAGE 129

,QGLDQV -LPHQH] GH (VSDGD &/9,,f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n WXUHV 7KH RWKHU ,QGLDQV VD\V &KDQWUH YLHZHG WKHP DV PHQ RI DQRWKHU FODVV 7KH\ UHVSHFWHG WKHP DQG IROORZHG WKHP LQ WKHLU ZRUGV DQG FRXQFLO &KDQWUH \ +HUUHUD WUDQVODWLRQ PLQHf

PAGE 130

,QGLDQ VRFLHW\ KDG LQ IDFW EHJXQ WR VWUDWLI\ XQGHU WKH LQIOXHQFH RI WKH PLVVLRQDULHV DQG VROGLHUV /XFDV GH OD &XHYD DFFRPSDQLHG WKH VROGLHUV ZKR ZHUH ORRNLQJ IRU IXJLWLYH 0DLQDV GRZQVWUHDP RQ WKH 0DUDLIRQ DQG YHU\ QHDU WKH &RFDPLOOD :KHQ WKH ,QGLDQV ZHUH IRXQG WKH SXQLVKPHQWV ZHUH H[WUHPH 7KH ;HEHURV ,QGLDQVr ZKR ZHUH HQHPLHV RI WKH 0DLQDV WXUQHG XS DW WKH VROGLHUnV FDPS DQG YROXQWHHUHG WR KHOS WKH 6SDQLVK KXQW IRU WKH 0DLQDV 7KH\ ZHUH PRWLYDWHG SDUWO\ E\ GLVOLNH RI WKH 0DLQDV EXW WKH GHVLUH VWHPPHG PRUH IURP IHDU RI WKH 6SDQLVK DQG D IHOW QHHG WR DOO\ ZLWK VXFK SRWHQWLDOO\ GDQJHURXV SHRSOH $ OHWWHU IURP )DWKHU *XHYD WR &XJLD LQ $SULO RI WZR PRQWKV DIWHU WKH WZR KDG DUULYHG LQ %RUMD LV WHOOLQJ RQ WKLV SRLQW 7KH ;HEHURV DUH LQ WHUURU RI WKH 6SDQLVKB KDYLQJ VHHQ VR PDQ\ ,QGLDQV MXGJHG VR PDQ\ TXDUWHUHG ERGLHV KXQJ RQ WKH WUHHV DQG JDOORZV VR PDQ\ HDUn OHVV QRVHOHVV RQHV RWKHUV WRUQ KDQGV DQG IHHW FXW RII 7KRVH ZKR JHW RII OLJKWO\ DUH LQIHFWHG DQG VNLQQHG E\ ZKLSV DQG WKH ;HEHURV NQRZB WKDW WKH\ WRR DUH WKUHDWHQHG IRU FULPHV DQG WUHDVRQ DQG HYHQ 6SDQLVK GHDWKV )LJXHURD WUDQVODWLRQ PLQHf 7KH &RFDPLOOD DQG RWKHU ,QGLDQV FHUWDLQO\ ZHUH DZDUH RI ZKDW ZDV KDSSHQLQJ RQ WKH 0DUDQRQ DQG ORZHU 3DVWD]D ULYHUV 7KH &RFDPLOOD ZHUH DW SHDFH ZLWK WKH ;HEHURV DW

PAGE 131

WKH WLPH DQG DFFRUGLQJ WR DOO DFFRXQWV ZHUH LQ WKH ZLQWHU RI WHUURUL]LQJ WKH +XDOODJD DQG 0DUDnQRQ ULYHUV LQ WKH FRPSDQ\ RI WKH &RFDPD LQ VTXDGURQV RI FDQRHV ,Q DGGLWLRQ &XHYDV OHWWHU UHSRUWV WKDW D &RFDPLOOD FKLHI LQ WKH FRPSDQ\ RI ;HEHURV ,QGLDQV KDG NLOOHG WZR 6SDQLVK FDFDR JDWKHUHUV EHIRUH )LJXHURD f GRXEWOHVV WKH FULPH UHIHUUHG WR LQ WKH DERYH TXRWH 7KH ;HEHURV FRRSHUDWHG E\ OHDGLQJ &XHYD WR WKHLU WHUULn WRU\ RQH DQG D KDOI GD\V XSVWUHDP RQ WKH $LSHQD 5LYHU D QDUURZ EODFNZDWHU ULYHU ZKLFK FXWV WKURXJK VDQG\ VRLOV RI WKH XSODQG IRUHVW DQG NLORPHWHUV XS D WULEXWDU\ VWUHDP 7KHUH WKH\ OLYHG GLVSHUVHG LQ VPDOO JURXSV DV IDU DSDUW DV NLORPHWHUV FDOFXODWLQJ D OHDJXH DW NLORPHWHUV DQG PRUH )LJXHURD f 6LQFH WKHLU VDQG\ XSODQG VRLOV ZRXOG VXSSRUW PDQLRF EXW QRW SODQWDLQV FRUQ RU FRWWRQ WKH\ UDLVHG WKH ODWWHU SURGXFWV RQ DQ LVODQG RI WKH 0DUDQRQ RQO\ DERXW NLORPHWHUV WKURXJK WKH IRUHVW IURP WKHLU WHUULWRU\ )LJXHURD f *URKV f KDV WHQWDn WLYHO\ LGHQWLILHG WKH LVODQG DV ,VOD %DUDGHUR RQ PRGHUQ PDSV &XHYD IRXQGHG D PLVVLRQ DW WKDW ORFDWLRQ DPRQJ WKH ;HEHURV EXW VSHQW OLWWOH WLPH WKHUH LQ WKH ILUVW IHZ \HDUV $V HDUO\ DV KH FRQWDFWHG WKH 3DPEDGHTXHV WKH RUWKRJUDn SK\ LV )LJXHURDnVf D VXEJURXS RI WKH &RFDPLOOD +H DOVR

PAGE 132

FRQWDFWHG WKH &XWLQDQDV DSSDUHQWO\ D VXEJURXS RI WKH $JXDQR &KDPLFXUR DQG WKH $WDJXDWHV SUREDEO\ VSHDNLQJ D ODQJXDJH VLPLODU WR WKH ;HEHURV EXW LW ZRXOG EH VRPH \HDUV EHIRUH WKH\ ZHUH PLVVLRQL]HG &KDQWUH t +HUUHUD f 7KH &RFDPLOOD ZHUH QRW ZHOONQRZQ DW OHDVW WR WKH SULHVWV DW WKLV WLPH f H[FHSW IRU WKHLU ZDUOLNH WHQn GHQFLHV &XHYD NQHZ WKH\ ZHUH IULHQGO\ ZLWK WKH ;HEHURV ,QGLDQV DQG LW ZDV WKURXJK WKH ;HEHURV WKDW KH PDQDJHG WR FRQWDFW WKHP ,W LV XQFOHDU LQ DOO VRXUFHV ZKDW UHODWLRQ WKH 3DPEDGHTXHV KDG ZLWK WKH &RFDPLOOD &KDQWUH f DVVRFLDWHG WKH WZR DV WKH VDPH JURXS ,Q DIWHU ILYH \HDUV WKH ;HEHURV ,QGLDQV UHYROWHG DQG IOHG WKHLU QHZ PLVVLRQ 7KHLU LQLWLDO HQWKXVLDVP IRU WKH SUHVHQFH RI D SULHVW EULQJLQJ LURQ WRROV DQG RWKHU XVHn IXO JLIWV KDG WXUQHG LQWR D KHDUWIHOW GHVLUH WR EH DV IDU DZD\ IURP KLP DQG WKH 6SDQLVK VROGLHUV DV SRVVLEOH 7KH UHDVRQV ZHUH VHYHUDO 7KH SULHVWnV EDSWLVP ERRNV IULJKWHQHG WKHP 7KH\ WKRXJKW KH ZDV ZULWLQJ QDPHV VR WKDW WKH\ FRXOG EH GLYLGHG XS DPRQJ WKH 6SDQLVK HQFRPHQGHURV QRZ LQ %RUMD $ 0DLQDV ,QGLDQ ZKR NQHZ WKHLU ODQJXDJH WROG WKHP WKDW WKH 6SDQLVK ZHUH JRLQJ WR NLOO VRPH DQG JLYH VRPH WR WKH 8FD\DOL &RFDPD ZKR ZHUH IHDUHG E\ WKH ;HEHURV )LJXHURD f 7KH\ ZHUH WLUHG RI ZRUNLQJ RQ WKH SULHVWnV

PAGE 133

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f ,Q RWKHU ZRUGV KH KDG LQVLVWHG WKDW WKH\ FKDQJH WKHLU HQWLUH VXEVLVWHQFH SDWWHUQ VRFLRSROLWLFDO RUJDQL]DWLRQ DQG EHOLHI V\VWHP 7KH HIIHFWV RQ QXWULWLRQ DORQH PXVW KDYH EHHQ SURIRXQG $OWKRXJK LW WUHDWV RI WKH ;HEHURV WKH SRLQW VHHPV VLJQLILFDQW ZLWK UHJDUG WR WKH &RFDPLOOD ODWHU EHFDXVH WKH ;HEHURV UHGXFWLRQ ZDV WKH -HVXLWVn ILUVW PLVVLRQ LQ WKH 0DUDULRQ DUHD DPRQJ WKH IUHH ,QGLDQV 7KXV WKH WHFKQLTXH RI VHWWOLQJ LW DV ZHOO DV WKHLU SROLF\ FDPH WR EH DQ LGHDO

PAGE 134

,OO PRGHO WKRXJK QRW DOZD\V IROORZVHGf IRU DOO IXUWKHU VHWWOHn PHQWV LQ WKH UHJLRQ 1RWLFLDV $XWQWLFDV )LJXHURD f 6LQFH PRUH LV NQRZQ DERXW LWV VHWWOHn PHQW WKDQ DQ\ RI WKH RWKHU HDUO\ PLVVLRQV WKH FODVK EHn WZHHQ WKH H[SHFWDWLRQV RI WKH -HVXLW SULHVWV DQG WKH H[SHFWDWLRQV RI WKH ,QGLDQV KDV D ZLGHU VLJQLILFDQFH 7KLV EHLQJ WKH FDVH LW LV ZHOO WR H[DPLQH VRPH RI &XHYDnV WHFKQLTXHV LQ D OLWWOH PRUH GHWDLO EHIRUH SURFHHGLQJ 7KH RULJLQDO WHFKQLTXH HYROYHG E\ &XHYD DQG &XJLD ZDV WKUHH SURQJHG &KDQWUH \ +HUUHUD f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n IHDU RI WKH GLVWDQW VROGLHUV WR NHHS WKHP LQ OLQH +RZHYHU WKH PLVVLRQDULHV FRQWUDU\ WR JHQHUDO EHOLHI ZHUH

PAGE 135

QRW RSSRVHG WR IRUFH DV D PHDQV RI LPSRVLQJ WKHLU RZQ LGHDV RI PRUDOLW\ DQG VRXQG VRFLDO RUJDQL]DWLRQ RQ WKH ,QGLDQV ,W ZDV VLPSO\ WKDW LQ WKH ILUVW \HDUV WKH\ KDG QRW \HW FRQVROLGDWHG WKHLU SRVLWLRQ HQRXJK ZLWK WKH IUHH ,QGLDQV WR DSSO\ IRUFH HIIHFWLYHO\ )LJXHURD f $FWXDOO\ WKH\ YLHZHG WKH HQIRUFHG VHFXODU FRQWURO RI ,QGLDQV DV D YLWDO SDUW RI &KULVWLDQL]LQJ WKHP LQ )LJXHURDnV JUDSKLF SKUDVH WR PDNH RI EUXWHV PHQ DQG RI PHQ &KULVWLDQV )LJXHURD f 7KH SULHVWV XQOLNH WKH &RXQFLO RI WKH ,QGLHV UHFRJQL]HG WKH HPEHGGHGQHVV LQ ,QGLDQ VRFLDO DQG HFRQRPLF OLIH RI WKHLU EHOLHIV :KLOH WKH ,QGLDQV ZLVKHG WR EHFRPH &KULVWLDQV RQO\ WR UHFHLYH D[HV NQLYHV KRRNV DQG PDFKHWHV WKH\ ZLVKHG WR UHWDLQ WKHLU RZQ FXVWRPV DQG SUDFWLFHV DV PXFK DV SRVVLEOH 7KXV WKH QHFHVVLW\ RI IRUFH WR EULQJ WKHP WR UHDVRQ )LJXHURD &KDQWUH \ +HUUHUD f 7KH IOLJKW RI WKH ;EHURV ,QGLDQV LQ ZDV WRXFKHG RII E\ WKH &RFDPLOOD %\ WKLV WLPH WKH &RFDPLOOD DQ H[SHUW ULYHU SHRSOH ZHUH EHLQJ XVHG DV FDQRHPHQ DQG JXLGHV IRU 6SDQLVK H[SHGLWLRQV DOWKRXJK WKH\ KDG QRW \HW EHHQ SODFHG LQ D PLVVLRQ YLOODJH UHGXFFLQf 2Q RQH VXFK H[SHGLWLRQ D JURXS ZDV SDGGOLQJ FDQRHV DQG JXLGLQJ D 7HQLHQWH DQG VRPH WURRSV WR 0R\REDPED 7KH &RFDPLOOD

PAGE 136

DWWHPSWHG WR NLOO WKH VROGLHUV VHWWLQJ WKH FDQRHV IUHH WR GULIW RII GRZQVWUHDP DQG WULHG WR VSHDU WKH WURRSV ZKLOH WKH\ VOHSW 7KH VROGLHUV KDG EHHQ DOHUWHG E\ DQ ,QGLDQ WUDLWRU DQG WKH\ IRLOHG WKH DWWHPSW 7KH &RFDPLOOD IOHG EDFN WR WKHLU YLOODJH JDWKHUHG WKHLU IDPLOLHV DQG OHIW IRU WKH &RFDPD KHDUWODQG RQ WKH 8FD\DOL 5LYHU )LJXHURD f 7KH ;HEHURV SUREDEO\ IHDULQJ JHQHUDOL]HG UHSULVDO DQG EHLQJ WKRURXJKO\ VLFN RI WKH PLVVLRQ OLIH DOVR IOHG 6RPH RI WKHP MRLQHG WKH &RFDPLOOD RQ WKH 8FD\DOL 2WKHUV VRRQ UHWXUQHG WR WKH 3XHEOR XQGHU WKH 6SDQLVK WKUHDW RI KDQJLQJ DQ\RQH ZKR ZDV FDXJKW RXWVLGH WKH YLOODJH )LJXHURD f 7KH 6SDQLVK UHDFWHG TXLFNO\ WR WKH &RFDPLOOD UHYROW 7KH\ GLVSDWFKHG WKH 7HQLHQWH *HQHUDO 3DGUH &XJLD VROGLHUV DQG HQRXJK IULJKWHQHG ;HEHURV 0DLQDV DQG &RFDPLO ODV WR ILOO FDQRHV DQG KHDGHG IRU WKH ODQGV RI WKH &RFDPD SDVVLQJ E\ ZD\ RI WKH LVWKPXV URXWH ZLWK LWV WZR SRUWDJHV 7KH\ DUULYHG DW WKH 8FD\DOL RQ 0D\ DQG IRXQG WKH &RFDPD RQ WKH RSSRVLWH VKRUH )LJXHURD f 7KH\ GLVSDWFKHG LQWHUSUHWHUV WHOOLQJ WKH &RFDPD WKDW WKH\ ZHUH QRW WKHUH WR PDNH ZDU 3DGUH &XJLD WKHQ ZHQW RYHU LQ D FDQRH DQG ZDV UHFRJQL]HG E\ WKH IXJLWLYH &RFDPLOOD DQG ;HEHURV 7KH\ WKHQ JUHHWHG WKH WURRSV ZLWK

PAGE 137

PXFK HPEUDFLQJ VWDLQLQJ WKH 6SDQLVK FORWKHV ZLWK WKH DFKLRWH G\H RQ WKHLU DUPV DQG FORWKHV )LJXHURD f 7KH OLHXWHQDQW LQ FKDUJH RI WKH VROGLHUV SXW WKH ;HEHURV DQG &RFDPLOOD OHG E\ D FDFLTXH QDPHG 0DQLFR XQGHU DUUHVW 3DGUH &XJLD DQG WKH OLHXWHQDQW WKHQ VWDJHG D OLWWOH GUDPD LQ ZKLFK WKH SULHVW EHJJHG IRU WKH OLYHV RI WKH ,QGLDQV DQG DW ODVW WKH OLHXWHQDQW JDYH LQ 7KLV LPSUHVVHG WKH ,QGLDQV QR HQG ZLWK WKH SULHVWnV SRZHU DV LW ZDV SODQQHG WR GRf DQG WKLV LPSUHVVLRQ ZDV KHLJKWHQHG ZKHQ WKH SULHVW GUHVVHG GRZQ D SDLU RI VROGLHUV ZKR ZHUH LPPHGLDWHO\ DUUHVWHG E\ WKH OLHXWHQDQW DV WKH VHFRQG DFW LQ WKH OLWWOH PRUDOLW\ SOD\ )LJXHURD f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f WKH &RFDPD FDPH IURP RWKHU YLOODJHV WR VHH KLP +H ZDV RIIHUHG WKH UHWDLQHUV RI WKH

PAGE 138

GDDG FDFLTXH EXW GHFOLQHG WKH SULYLOHJH )LJXHURD f 7KH WURRS OHIW WR YLVLW WKH XSULYHU YLOODJH IRU D IHZ GD\V DQG WKHQ OHIW ZLWK WKH FDSWLYHV OHDYLQJ PDQ\ WRROV ZLWK WKH &RFDPD 7KH &RFDPD LPPHGLDWHO\ EHJDQ WR GLH IURP YDULRXV SHVWHV )LJXHURD f &KDQWUH f VD\V DW OHDVW KDOI RI WKHP GLHG VRRQ DIWHU DQG E\ WKH WLPH WKH\ ZHUH QH[W FRXQWHG HLJKW \HDUV ODWHU WKH WKUHH YLOODJHV KDG EHHQ UHGXFHG WR RQH 7KLV YLOODJH ZDV ORFDWHG VRPHZKDW QRUWK IURP WKH IRUPHU GRZQVWUHDP RQH LQ ZKLFK RQO\ LQGLRV GH ODQ]D ZHUH IRXQG ZLWK WKHLU IDPLOLHV $ KXQGUHG IDPLOLHV SHUKDSV SHRSOHf KDG JRQH EDFN WR WKH +XDOODJD 5LYHU ZLWK WKH 6SDQLVK DQG WKH &RFDPLOOD )LJXHURD f 7KH VXUYLYLQJ &RFDPD ZHUH XQGHU ILHUFH SUHVVXUH IURP WKH &KLSHR ,QGLDQV 7KH 6SDQLVK ODWHU PDUYHOHG DW KRZ GHOLFDWH WKH &RFDPD DQG RWKHU ,QGLDQV HVSHFLDOO\ WKH LQODQG ,QGLDQVf ZHUH 7KH\ VDLG WKH\ KDG GLHG DW WKH VLJKW RI WKH 6SDQLVK VROGLHUV WKH VPHOO RI WKH SRZGHU DQG WKH VRXQG RI WKH DUFDEXFHV ILULQJ )LJXHURD f 7KH ILUVW H[SHGLWLRQ ZDV IROORZHG E\ DQRWKHU RQH VRPHn WLPH DIWHU WKH GHSDUWXUH LQ EXW EHIRUH WKH &RFDPD KDG VXIIHUHG VXFK GLVDVWURXV SRSXODWLRQ UHGXFWLRQ 7KLV

PAGE 139

H[SHGLWLRQ ZDV EURXJKW RQ E\ DOOHJHG &RFDPD WKUHDWV WR DWWDFN WKH 0DLQDV DQG WKH 6SDQLVK 7KH &RFDPD UHSRUWHGO\ RIIHUHG WR VKDYH WKH 6SDQLVK EHDUGV E\ VWLFNLQJ WUHH UHVLQ WR WKHP DQG ULSSLQJ WKH KDLU RII WKHLU IDFHV $SSDUHQWO\ WKH\ KDG QRW EHHQ TXLWH DV KDSS\ ZLWK WKHLU JXHVWV DV 3DGUH &XJLD KDG LPSOLHG 7KLV WLPH WKH 6SDQLVK FRXOG QRW SHUVXDGH DQ\ &RFDPD WR YHULI\ WKH UXPRUV VR WKH\ OHIW WDNLQJ WKH FDSWLYHV FXUUHQWO\ KHOG E\ WKH &RFDPD IURP UDLGV RQ RWKHU ,QGLDQV )LJXHURD f 7KH &RFDPLOOD FRQWLQXHG WR OLYH LQ WKHLU YLOODJH QHDU WKH 6KLVKLQDKXD 5LYHU PL[HG ZLWK SUREDEO\ &RFDPD XQWLO 6HSWHPEHU RI ZKHQ %DUWRORP 3HUH] ZDV VHQW WR SXW WKH YLOODJH LQ RUGHU 7KH\ KDG EHHQ FRZHG E\ KDQJLQJV YLHZHG DV QHFHVVDU\ E\ WKH SULHVWV WR LQVWLOO UHVSHFWf 3DGUH 3HUH] ODLG RXW D SOD]D ZLWK D FKXUFK DQG VWUDLJKWHQHG RXW WKH VWUHHWV DORQJ WKH ULYHUEDQN +H JDYH WKH YLOODJH D &DWKROLF QDPH 6DQWD 0DULD GH *XDOODJD $FFRUGLQJ WR &KDQWUH f 3DGUH 3HUH] IRXQGHG WKUHH YLOODJHV DPRQJ WKH &RFDPLOOD WKH ODUJHVW RI ZKLFK ZDV 6DQWD 0DULD )LJXHURD D VRXUFH PXFK FORVHU WR WKH VFHQH PHQWLRQV RQO\ RQH QDPHO\ 6DQWD 0DULD GH *XDOODJD 7KH FKURQRORJ\ RI WKH QH[W IHZ \HDUV LV HTXDOO\ LQ GRXEW 7KH PRVW OLNHO\ VFHQDULR LV WKDW 3DGUH 3HUH] ZRUNHG RQ WKH +XDOODJD 5LYHU

PAGE 140

XQWLO ZKHQ KH ZDV UHSODFHG E\ 5DLPXQGR GH 6DQWD &UX] ZKR KDG DUULYHG WKDW \HDU IURP 4XLWR &KDQWUH \ +HUUHUD )LJXHURD f 3DGUH 3HUH] ZHQW WR WKH 8FD\DOL 5LYHU WKH IROORZLQJ \HDU WR ZRUN DPRQJ WKH &RFDPD +H IHDUHG WKDW WKHLU IUDFWLRXVQHVV ZDV HQGDQJHULQJ WKH VWDELOLW\ RI WKH HQWLUH PLVVLRQ VWUXFWXUH +H IRXQGHG DW OHDVW RQH PLVVLRQ DPRQJ WKHP 6DQWD 0DULD GH 8FD\DOH LQ WKH WKUHH PRQWKV KH ZDV WKHUH 7KLV YLOODJH ZDV SUREDEO\ RQ D ODNH QHDU WKH XSVWUHDP PRXWK RI WKH 3XLQDKXD FDQDO &KDQWUH \ +HUUHUD )LJXHURD f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

PAGE 141

WKDW WKH\ KDG PRUH JRYHUQPHQW WKDQ RWKHUV ZKR OLYH YHU\ GLYLGHG DQG DSDUW KDYH OLWWOH RU QRWKLQJ RI JRYHUQPHQW ,Q KHOSLQJ HDFK RWKHU LQ ZDUV RU LQ GHIHQGLQJ WKHPVHOYHV DJDLQVW WKH DWWHPSWV RI RWKHUV LQ WKH GULQNLQJ GDQFHV FXUDWLYHf VLQJLQJ DQG RWKHU VLPLODU WKLQJV ZKLFK UHTXLUH WKH FRQn FRXUVH RI PHQ RQH PD\ VD\ WKDW LW ZDV ZRUWKZKLOH IRU WKHP WR OLYH LQ YLOODJHV %XW LQ RWKHU WKLQJV RI LPSRUWDQFH LW ZDV DV LI WKH\ GLG QRW OLYH DPRQJ PHQ )LJXHURD WUDQVODWLRQ PLQHf 3DGUH 6DQWD &UX] ZRUNHG ZLWK WKHP DQG OHDUQHG WKH ODQJXDJH DFFRUGLQJ WR &KDQWUH f KHOSLQJ WKHP LQ WKHLU ILHOGV DQG JLYLQJ WKHP PDQ\ WRROV +H FRXQWHG 6DQWD 0DULD GH *XDOODJD DW WKLV WLPH DW SHRSOH RI ZKRP ZHUH LQGLRV GH ODQ]D )LJXHURD f $SSDUHQWO\ PRVW RI WKH &RFDPD ZKR FDPH IURP WKH 8FD\DOL 5LYHU KDG GLHG E\ FKLV WLPH DV ZHOO DV PRVW RI WKH &RFDPLOOD 3DGUH 6DQWD &UX] GLG QRW OLNH WKH IORRGSODLQ ORFDWLRQ RI WKH YLOODJH QRWZLWKVWDQGLQJ WKH IDFW WKDW WKH &RFDPLOOD ZD\ RI OLIH ZDV LQWLPDWHO\ EDVHG RQ WKH ULYHU DQG ODNH UHVRXUFHV DQG DOOXYLDO VRLOV RI WKH IORRGSODLQ +H FRPn SODLQHG WKDW KLV ERRNV DQG FORWKHV ZHUH URWWLQJ IURP WKH KXPLGLW\ +H YLHZHG DV HVSHFLDOO\ SHUQLFLRXV WKH &RFDPLOOD KDELW RI OHDYLQJ WKH YLOODJH IRU D SHULRG RI WLPH LQ WKH ZLQWHU WR KXQW DQG JDWKHU LQODQG ZKLFK WKH\ ZHUH DFFXVWRPHG WR GR ZKHQ WKH ILVK ZHUH KDUG WR FDWFK DQG WKHLU ODQGV

PAGE 142

ZHUH IORRGHG )RUPHUO\ PDQ\ RI WKH PHQ KDG JRQH ZDUULQJ DW WKLV WLPH RI \HDU 6DQWD &UX]nV VROXWLRQ ZDV WR PRYH WKH YLOODJH WR KLJKHU JURXQG XSVWUHDP QHDU WKH SUHVHQW VLWH RI 6DQWD 0DULD EXW RQ WKH ZHVW EDQN RI WKH ULYHU 7KLV PRYH ZDV LQ D \HDU DIWHU 6DQWD &UX] DUULYHG DQG WKUHH \HDUV DIWHU 3HUH] KDG EHJXQ WR OLYH ZLWK WKH &RFDPLOOD )LJXHURD f 7KHUH ZDV DSSDUHQWO\ VRPH UHVLVWDQFH RQ WKH SDUW RI WKH &RFDPLOOD EHFDXVH WKH\ UHFRJQL]HG WKH LQIHULRULW\ RI WKH VLWH LQ HFRORJLFDO WHUPV &KDQWUH \ +HUUHUD f EXW 6DQWD &UX] SUHYDLOHG 7KH\ PRYHG DQG 6DQWD &UX] KDYLQJ WDXJKW WKH &RFDPLOOD WR ZRUN WKH ODQG QRZ LQVWUXFWHG WKHP LQ KRXVHEXLOGLQJ PDNLQJ RI WKHP SHRQV DQG DUTXLWHFWV )LJXHURD f 7KH QHZ VSRW KDG WKH DGYDQWDJH LQ WKH PHGLHYDO KHDOWKORUH RI WKH 3DGUHV RI JRRG DLUV $OWKRXJK 6DQWD &UX] WUHDWHG WKH &RFDPLOOD WR SXQLVKn PHQW DQG ZKLSV )LJXHURD f WKH\ UHPDLQHG XQGLVFLSOLQHG 7KH\ ZHUH DOZD\V SRRU LQ FRRSHUDWLRQ ZLWK EXLOGLQJ VFKHPHV DV WKH IROORZLQJ TXRWH LQGLFDWHV $OWKRXJK DOO RI WKHP ZRXOG LQGLFDWH WKHLU ZLOOLQJQHVV WR ZRUN DIWHUZDUGV WKH\ ZRXOG JR ZKHUHYHU WKH\ VDZ ILW JHWWLQJ XS HDUO\ WR OHDYH DQG VD\LQJ WKH RQHV ZKR VWD\ ZLOO GR LW 2WKHUV VWD\LQJ LQ WKHLU KRXVHV ZRXOG VD\ ZKHQ FDOOHG WKDW WKH\ ZHUH OD]\ ,Q VKRUW WKH\ DUH SHRSOH WDXJKW QRW WR EH \RNHG QRU

PAGE 143

RUGHUHG DQG QRW WR EH JLYHQ WDVNV H[FHSW WR WKHLU OLNLQJ )LJXHURD WUDQVODWLRQ PLQHf 3DGUH 6DQWD &UX] DSSRLQWHG UHJLGRUHV DOFDOGHV DOJXDFLOHV DQG ILVFDOHV IRU JRYHUQPHQW DQG KDG VWRFNV EXLOW WR SXQLVK PDOIHDVRUV +H FDXVHG D FKXUFK WR EH EXLOW +H LQWURGXFHG WKH FXVWRP RI DVVLJQLQJ ,QGLDQV FDOOHG PLWD\HURV WR EULQJ PHDW WR KLP GDLO\ +H SHUVXDGHG WKH &RFDPLOOD WR PDNH ILHOGV IRU KLP DQG WR EULQJ KLP RIIHULQJV RI IRRG FDOOHG FDPDULFRV 6RPH RI WKLV IRRG ZDV UHGLVWULEXWHG WR WKH SRRU ZKR RI FRXUVH ZHUH RQO\ SRRU EHFDXVH RI WKH 6SDQLVK SUHVHQFHf +H LQWURGXFHG FDWWOH DQG SLJV )LJXHURD f )HOLSH 0DQLFR WKH FDFLTXH ZKR KDG OHG KLV SHRSOH WR WKH &RFDPD LQ DQG ZKR ZDV EURXJKW EDFN LJQRPLQRXVO\ LQ EHFDPH JRYHUQRU RI WKH SXHEOR LQ DFFRUGDQFH ZLWK 6SDQLVK SROLF\ )LJXHURD &KDQWUH \ +HUUHUD f 7KH &RFDPLOOD KDG PDGH WKHLU ILUVW JUHDW DGMXVWPHQW WR WKH 6SDQLVK E\ 7KHUH LV VRPH LQGLFDWLRQ WKDW WKH\ UHVLVWHG ILHUFHO\ LQ DUHDV VXFK DV FXULQJ EHOLHIV DQG ZHUH QRW DIUDLG WR WHOO WKH SULHVW ZKHQ KH KDG JRQH WRR IDU LQ GHSUHFDWLQJ WKHLU FXVWRPV )LJXHURD f (YHQ DW WKLV VWDJH LQ WKHLU DGMXVWPHQW WR 6SDQLVK FXOWXUH WKH\ KDG FORVHG RII FHUWDLQ DVSHFWV RI VRFLDO OLIH VXFK

PAGE 144

DV FXULQJ IURP WKH 6SDQLVK ZKLOH FRRSHUDWLQJ ZLWK WKHP LQ WKH SXEOLF VSKHUH 7KLV DGMXVWPHQW WKH JUDGXDO VHSDUDWLRQ RI WKH SXEOLF DQG SULYDWH VSKHUHV RI VRFLDO OLIH ZDV WR ODVW WKHP D ORQJ WLPH 2QH DUHD RI FRRSHUDWLRQ ZKLFK VHHPHG DJUHHDEOH WR WKH &RFDPLOOD LQ WKHVH \HDUV ZDV LQ PDNLQJ HQWUDGDV H[SHGLWLRQVf WR HQFRXUDJH RWKHU ,QGLDQV WR EH UDFLRQDOHV DV WKH\ WKHPVHOYHV ZHUH 6DQWD &UX] DQG KLV &RFDPLOOD JXLGHV DQG H[SHUW FDQRH PHQ PLVVLRQL]HG WKH 3DUDQDSXUD DQG 0XQLFKH ,QGLDQV LQ )LJXHURD &KDQWUH \ +HUUHUD f %\ WKH &RFDPD DQG &RFDPLOOD DW 6DQWD 0DULD GH *XDOODJH XQGHU D &RFDPD FDFLTXH 5DLPXQGR $FRQRPD KDG KHOSHG PLVVLRQL]H WKH VRFDOOHG %DUEXGRV RU 0D\RUXQD 3DQRDQV XSVWUHDP WR WKH HDVW RI WKH +XDOODJD 5LYHU DQG )HOLS 0DQLFR DQG VRPH RI KLV IROORZHUV QRW WR EH RXWGRQH KDG YLVLWHG DW OHDVW RQH YLOODJH RI $JXDQR ,QGLDQV VOLJKWO\ GRZQVWUHDP DQG DFURVV WKH ULYHU IURP 6DQWD 0DULD DOO ZLWKRXW WKH DLG RI WKH SULHVW RU WKH 6SDQLVK VROGLHUV )LJXHURD &KDQWUH \ +HUUHUD f 7KH QHZ PLVVLRQV ZHUH QDPHG 6DQ ,JQDFLR GH 0D\RUXQDV DQG 6DQ ;DYLHU GH $JDQRV 6DQ ,JQDFLR IRXQGHG LQ DSSUR[Ln PDWHO\ ZDV ORFDWHG MXVW DFURVV WKH ULYHU IURP 6DQWD 0DULD GH *XDOODJD )LJXHURD f 6DQ ;DYLHU ZDV IRXQGHG DW DERXW WKH VDPH WLPH DQG SUREDEO\

PAGE 145

KDG WZR DQQH[HV &KDQWUH VD\V WKHUH ZDV RQO\ RQH YLOODJH DW WKH WLPH S f 6DQ ;DYLHU ZDV DEDQGRQHG ODWHU GDWH XQNQRZQf DQG D QHZ 6DQ ;DYLHU GH &KDPLFXUR D JURXS ILVVLRQHG IURP WKH $JDQRVf ZDV IRXQGHG LQ DERXW QDPHG VR DV WR GLVWLQJXLVK LW IURP WKH ROG 6DQ ;DYLHU $W WKH VDPH WLPH 6DQ $QWRQLR GH $EDG GH $JDQRV EHFDPH WKH $JXDQR UHGXFWLRQ DOPRVW FHUWDLQO\ LQ WKH VDPH VLWH ZKHUH WKH SUHVHQW WRZQ RI 6DQWD &UX] QRZ VLWV &KDQWUH \ +HUUHUD f 6DQ ,JQDFLR GH 0D\RUXQDV VWLOO H[LVWHG LQ EXW ZDV DEDQGRQHG VRPHWLPH DIWHUZDUG SUREDEO\ ZKHQ WKHUH ZHUH QR PRUH 0D\RUXQD &KDQWUH \ +HUUHUD f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

PAGE 146

ZLWK IHDWKHUHG KHDGGUHVVHV DQG URVDULHV FODQNLQJ DERXW WKHLU QHFNV WKH\ SDUDGHG LQ WKH VWUHHWV 6DQWD &UX] PDGH D PHPRUDEOH VSHHFK LQ WKH FDWKHGUDO LQ WKH &RFDPD ODQJXDJH 7KH 4XLWR YHFLQRV ZDQWHG WKH &RFDPLOODV DV JRGFKLOGUHQ DQG WKH\ OHDUQHG WKH DGYDQWDJHV RI VXFK ILFWLYH WLHV WKHUH &KDQWUH \ +HUUHUD f 7KH WULS EDFN WR %RUMD ZDV PDGH LQ GD\V EXW WKH -HVXLWV ZHUH QRW VDWLVILHG 7KH URXWH ZDV WRR ORQJ %HIRUH KH GLHG LQ GURZQHG LQ WKH %RKRQR 5LYHU %RERQD]R RQ PRGHUQ PDSVf 6DQWD &UX] ZDV WR WU\ WZLFH PRUH WR ILQG D GLUHFW URXWH YLD WKH 3DVWD]D 5LYHU :KHQ KH GURZQHG KH ZDV RQ KLV ZD\ EDFN WR %RUMD ZLWK WKH QHZV WKDW KH KDG LQGHHG IRXQG WKH ZD\ &KDQWUH \ +HUUHUD f +H GLHG DW \HDUV ROG DQ H[WUHPHO\ EUDYH DQG GHGLFDWHG EXW HPDFLDWHG DQG EDOGLQJ PDQ ZLWK VRUHV DOO RYHU KLV OHJV ZKR ZRUH D UDJJHG EODFN UREH IODSSLQJ DERXW KLV EDUH NQHHV +H KDG KHDYLO\ LQIOXHQFHG WKH GHVWLQ\ RI WKH &RFDPLOOD FI &KDQWUH \ +HUUHUD IRU D GHVFULSWLRQ RI 6DQWD &UX] HQWHULQJ 4XLWRf ,Q RQH KXQGUHG &RFDPLOOD PHQ ZHUH LPSUHVVHG LQWR PLOLWDU\ VHUYLFH XQGHU 'RQ 0DUWLQ GH OD 5LYD $JHUR LQ KLV IXULRXV DQG IXWLOH DWWHPSW WR WDPH WKH -LYDURV 6KXDUf RI WKH 6DQWLDJR 5LYHU DQG WR WDNH RYHU MXULVGLFWLRQ RI WKH

PAGE 147

%RUMD JRYHUQPHQW XQWLO WKHQ WKH SURYLQFH RI D G\QDVW\ RI 9DFDV DQG 9HJDV &KDQWUH \ +HUUHUD 1RWLFLDV $XWQWLFDV )LJXHURD f 7KH\ ZHUH DFFRPSDQLHG E\ 6DQWD &UX] WKH -HVXLW ZLWK WKH PRVW H[SHULHQFH LQ VXFK PDWWHUV 5LYD WULHG WR ILJKW D FRQYHQWLRQDO 6SDQLVK EDWWOH DPRQJ WKH JXHULOOD ILJKWHUV RI WKH MYDUR DQG ORVW )RXU RI 6DQWD &UX]nV PHQ ZHUH NLOOHG 0DQ\ RI WKH UHVW GHVHUWHG DQG IOHG EDFN WR WKH +XDOODJD PLVVLRQ ZKHUH WKH\ JDWKHUHG WKHLU IDPLOLHV DQG DV WKH\ KDG D GHFDGH EHIRUH IOHG WR WKH &RFDPD )LJXHURD f 7KH VDPH \HDU DQ HSLGHPLF VZHSW WKH +XDOODJD 7KH HIIHFWV DPRQJ WKH &RFDPLOOD ZHUH WHUULEOH ,W ZDV D KRUULI\LQJ WKLQJ WR VHH WKH VLFN DQG WKH GHDG ERGLHV RQ WKH EHDFKHV ZKHUH LQ VPDOO KXWV WKH\ KDG UHWLUHG HDWHQ E\ YXOWXUHV DQG RWKHU ELUGV DQG H[SRVHG WR WKH VZHHSLQJ RI WKH ULYHU ZKHQ LW URVH VXGn GHQO\ WR FDUU\ DZD\ WKH ERQHV )LJXHURD WUDQVODWLRQ PLQHf 7KLV DQG RWKHU HSLGHPLFV ZHDNHQHG WKH PLVVLRQ DV PXFK RU PRUH WKDQ WKH IOLJKW RI WKH GHVHUWHUV ,Q 6DQWD &UX] IRXQG WLPH WR OHDG WKH &RFDPLOOD WR IRXQG YLOODJHV DPRQJ WKH 5RDPDLQDV RI WKH 3DVWD]D 5LYHU EXW WKHUH FRXOG QRW KDYH EHHQ PDQ\ &RFDPLOOD PHQ OHIW E\ WKDW WLPH &KDQWUH \ +HUUHUD f

PAGE 148

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f &KDQWUH f LPSOLHV WKLV LQFLGHQW KDSSHQHG DIWHU EXW KH LV LQ GLVDJUHHPHQW ZLWK WKH )UDQFLVFDQV WKHPVHOYHV RQ WKLV VFRUH 7KH\ VD\ WKDW WZR SULHVWV WKUHH OD\ EURWKHUV WZHOYH 6SDQLVK VROGLHUV DQG HLJKW &KULVWLDQ ,QGLDQV ZHUH NLOOHG LQ $PLFK f 0D[DQR IRXQG WKH &RFDPD OLYLQJ LQ RQO\ RQH YLOODJH RI KRXVHV WZHOYH GD\V XSVWUHDP RQ WKH 8FD\DOL 5LYHU 7KHUH ZHUH DQ DGGLWLRQDO KRXVHV VFDWWHUHG GRZQVWUHDP IURP WKH YLOODJH &KLSHR DWWDFNV DQG GLVHDVH KDG DFFRXQWHG IRU WKH UHVW RI WKH &RFDPD )LJXHURD f 7KH &RFDPD ZHOFRPHG 0D[DQR DQG KLV FRPSDQLRQ 7KH WZR VSHQW WKH QH[W

PAGE 149

WZR \HDUV XQWLO ZLWK WKH JURXS 0D[DQR VHHPV WR KDYH EHHQ D VLQJXODUO\ GHYRXW DQG LQIOH[LEOH PDQ &KDQWUH \ +HUUHUD f $IWHU WZR \HDUV WKH &RFDPD UHn IXVHG WR REH\ KLP RU WR DWWHQG PDVV DQG WKH\ FRQWLQXHG UDLGLQJ RWKHU ,QGLDQV 7KH\ KDG PDGH VRPH VRUW RI SHDFH ZLWK WKH &KLSHR KRZHYHU IRU ZKHQ D JURXS RI WKH &KLSHR FDPH WR IHDVW RQ RQH RFFDVLRQ WKH &RFDPD DVNHG WKHP WR NLOO 0D[DQR IRU WKHP 1RWLFLDV $XWQWLFDV f 3DGUH )LJXHURD WKRXJKW WKH LQVROHQW &RFDPD KDG QRW EHHQ PDGH WR IHDU HQRXJK )LJXHURD f )LQDOO\ -XDQ 0DXULFLR 9DFD WKH %RUMD JRYHUQRU RUGHUHG 0D[DQR DQG )HUQDQGH] RXW RI &RFDPD WHUULWRU\ EHFDXVH KH ZDV ZRUULHG IRU WKHLU VDIHW\ +H LQWHQGHG WR VHQG LQ D SXQLWLYH IRUFH EXW KLV SODQV ZHUH IRLOHG IRU ODFN RI SRZGHU DQG EHFDXVH RI WKH HSLGHPLFV WKHQ VZHHSLQJ WKH HQWLUH UHJLRQ EHWZHHQ DQG )LJXHURD f ,Q WKH &RFDPLOOD IURP 6DQWD 0DULD GH *XDOODJD ZHUH VHQW WR EULQJ 0D[DQR EDFN WR WKHLU PLVVLRQ )LJXHURD f &KDQWUH f DVVHUWV WKDW &RFDPD IDPLOLHV ZHQW ZLWK KLP EXW )LJXHURD GRHV QRW PHQWLRQ LW ,W VHHPV OLNHO\ WKDW &KDQWUH KDG WKHP FRQIXVHG ZLWK WKH IDPLOLHV LQ ,I WUXH LW ZRXOG KDYH VZHOOHG WKH SRSXODWLRQ RI 6DQWD 0DULD WR DURXQG SHRSOH ,W VHHPV XQOLNHO\

PAGE 150

KRZHYHU EHFDXVH 0D[DQR ZDV VR XQSRSXODU ,Q WZR \HDUV KH KDG RQO\ EDSWL]HG SHRSOH PRVWO\ FKLOGUHQ )LJXHURD f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nV PLVVLRQDU\ VD\LQJ WKDW KH ZRXOG QRW OHW WKHP OLYH WKDW KH ZDV RSn SRVHG WR DOO RI WKHP DQG WKDW WKH\ FRXOG QRW WROHUDWH KLP &KDQWUH \ +HUUHUD WUDQVODWLRQ PLQHf 7KH &RFDPLOOD OHG E\ D PDQ QDPHG
PAGE 151

7KLV ZDV WRR PXFK IRU 3DGUH 0D[DQR DQG WKH %RUMD JRYHUQPHQW ,Q D IRUFH RI IULHQGO\ RU IULJKWHQHGf ,QGLDQV ZLWK VRPH 6SDQLVK VROGLHUV DFFRPSDQLHG E\ 3DGUH 0D[DQR ZHQW DIWHU WKH IXJLWLYHV /XFDV GH OD &XHYD DQRWKHU SULHVW GHVFULEHG WKH DUPDGDnV VXFFHVV WZR \HDUV ODWHU LQ D OHWWHU WR *DVSDU &XJLD WKHQ LQ 4XLWR 7KH IRUFH PHW ZLWK D &RFDPD FDFLTXH QDPHG 3DFD\D ZKR WRRN WKHP WR D ODJRRQ ZKHUH
PAGE 152

WR KDYH EHHQ GRPLQDWHG E\ WKH &RFDPD DQG KDG EHHQ OLYLQJ LQ &RFDPD YLOODJHV DW OHDVW VLQFH WKH WK FHQWXU\ 7KH\ DQG WKH UHVW RI WKH &RFDPD DQG &KLSHR ZHUH ZKLSSHG 7KH &KLSHRV ZHUH WDNHQ WR %RUMD WR VHUYH WKH 6SDQLVK 7KH &RFDPLOOD ZHUH RUGHUHG EDFN WR WKH *XDOODJD DQG WKH &RFDPD ZHUH RUGHUHG WR MRLQ WKHP 7KH IRUFH UHWXUQHG RYHU WKH LQODQG ZDWHUZD\ WR DYRLG WKH 8FD\DOL PRVTXLWRV EXW WKH ZDWHU ZDV VR ORZ WKDW WKH\ VXIIHUHG JUHDWO\ EHIRUH WKH\ VDZ %RUMD DJDLQ 1RWLFLDV $XWQWLFDV f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f 0DQ\ ,QGLDQV GHVHUWHG WKHLU YLOODJHV WR MRLQ WKH UHEHOV RU WR IOHH WR WKH IRUHVWV &KDQWUH \ +HUUHUD f

PAGE 153

&KDQWUH EHOLHYHV WKDW 0D[DQR ZDV SUREDEO\ NLOOHG DQG WKH IDFW KLGGHQ DURXQG WKLV WLPH EHFDXVH KH LV QHYHU PHQn WLRQHG DJDLQ &KDQWUH \ +HUUHUD f )LJXHURD KLPVHOI WULHG WR FRQYLQFH WKH &RFDPD E\ PHDQV RI GLSORPDF\ RQ QXPHURXV RFFDVLRQV WR VHWWOH GRZQ EXW WKH\ GHPDQGHG 0D[DQRnV OLIH 2Q WKH LGHV RI 0DUFK LQ DQ DUPDGD RI &RFDPD &RFDPLOOD &KLSHRV DQG 0DSDULQDV OHG E\ D +XDOODJD 5LYHU &RFDPD QDPHG 3DFD\D SHUKDSV WKH VDPH RQH DV LQ WKH UDLGf IRXQG )LJXHURD DW WKH PRXWK RI WKH $LSHQD 5LYHU ZLWK KLV UHWDLQHUV +H ZDV WUDYHOLQJ WR ILQG 0D[DQR ZKR PD\ DOUHDG\ KDYH EHHQ GHDG 7KH DUPDGD ZDV DOVR ORRNLQJ IRU 3DGUH 0D[DQR )LQGLQJ 3DGUH )LJXHURD LQVWHDG WKH\ FOXEEHG KLP DQG FXW RII KLV KHDG 6RPH RI KLV UHWDLQHUV HVFDSHG DQG PXVW KDYH WROG YDULRXV WDOHV DERXW WKH NLOOLQJ 6RPH VWRULHV KDYH WKH ,QGLDQV HDWLQJ KLV ERG\ VRPH KDYH WKHP FXWWLQJ RII KLV OLPEV ZKLOH KH PLUDFXORXVO\ FRQWLQXHG WR SUD\ FI 1RWLFLDV $XWQWLFDV &KDQWUH \ +HUUHUD f 7KH PDQ ZKR NLOOHG KLP )HOL[ 3DFD\D ZDV DSSDUHQWO\ D &RFDPD ZKR ZDV UDLVHG DPRQJ WKH &RFDPLOOD LQ 6WD 0DULD DQG ZDV D ILVFDO RI WKH FKXUFK 1RWLFLDV $XWQWLFDV &KDQWUH \ +HUUHUD f 7KH DUPDGD FKDQJHG LWV SODQV DQG GHFLGHG WR UDLG WKH ;HEHURV PLVVLRQ IURP ZKHQFH )LJXHURD KDG FRPH )RUJRWWHQ

PAGE 154

ZDV WKH IRUPHU ERQG EHWZHHQ WKH ;HEHURV DQG WKH &RFDPLOOD 7KH ;HEHURV KDG KHOSHG LQ WKH MXVWLFH RQ WKH EHDFK RI WKH KDQJHG 7KH IRUFH NLOOHG ;HEHURV DQG RQH 6SDQLVK DQG WKHQ UHWLUHG 1RWLFLDV $XWQWLFDV &KDQWUH \ +HUUHUD f %\ $XJXVW RI WKH 6SDQLVK PRXQWHG DQ H[SHGLWLRQ RI ,QGLDQV 6SDQLVK DQG /RUHQ]R /XFHUR D SULHVW ZKR ZDV ODWHU WR SOD\ DQ LPSRUWDQW SDUW LQ &RFDPLOOD KLVWRU\ DQG ZHQW DIWHU WKH UHEHOV ,W ZDV VDLG WKDW WKH ,QGLDQV KDG )DWKHU )LJXHURDnV KHDG DSDUW IURP RWKHU VXFK JULVO\ WURSKLHV DQG EHIRUH JRLQJ RQ D UDLG ZRXOG WDXQW LW VD\LQJ )DWKHU )LJXHURD LV WLUHG RI KHDULQJ FRQIHVVLRQV DQG QHHGV DQRWKHU FRPSDQLRQ WR KHOS KLPf 1RWLFLDV $XWQWLFDV f :KHQ WKH 6SDQLVK IRXQG WKH UHEHO ,QGLDQV WKH\ EDWWOHG DQG RYHU UHEHOV ZHUH NLOOHG DQGRU KXQJ DQG PDQ\ PRUH ZHUH FDUULHG DZD\ WR 0R\REDPED DIWHU EHLQJ MXGJHG LQ %RUMD 1RWLFLDV $XWHQWLFDV &KDQWUH \ +HUUHUD f 7KH VXUYLYLQJ &RFDPD RQ WKH 8FD\DOL UHPDLQHG REn VWLQDWH 2QH FDQ RQO\ LPDJLQH WKHLU VSLULW RI UHVROYH 7RR PDQ\ SHRSOH KDG EHHQ NLOOHG DPRQJ ERWK WKH &RFDPD DQG &RFDPLOOD E\ GLVHDVH DQG ZDU LQ WKH \HDUV VLQFH WKH ILUVW H[SHGLWLRQ WR WKH 8FD\DOL 7KH \HDUV RI H[SORUDWLRQ

PAGE 155

ZLWK 6DQWD &UX] NHSW &RFDPLOOD PHQ RXW RI WKHLU ILHOGV DQG DZD\ IURP WKHLU IDPLOLHV DQG PDQ\ KDG GLHG LQ IDUn DZD\ SODFHV 6DQWD 0DULD GH *XDOODJD KDG RQO\ PHQ D WRWDO RI SHRSOH OHIW LQ LW E\ DQG WKH UHEHOOLRQ VWUHWFKHG RQ DQG RQ )LJXHURD f )LQDOO\ /RUHQ]R /XFHUR WKH SULHVW ZKR KDG DWWHQGHG WKH ODVW JUHDW EDWWOH RI WKH UHEHOV JDYH XS WU\LQJ WR UHn HVWDEOLVK WKH &RFDPD PLVVLRQ RQ WKH 8FD\DOL 7KH &RFDPD ZKR KDG PRYHG WR WKH +XDOODJD 5LYHU DIWHU WKH GHIHDW WROG KLP RI JUHHQHU SDVWXUHV DPRQJ WKH 3DQRDQV RI WKH FHQWUDO 8FD\DOL DQG KH WUDYHOHG WKHUH EHWZHHQ DQG +H KDG VRPH VXFFHVV ZLWK WKH &KLSHRV 3DQRV DQG *LWLSRV SUREDEO\ 6KLSLERV 6HWHERV DQG &RQLERV RI WRGD\f DQG UHVROYHG WR PRYH DV PDQ\ RI WKHP DV ZHUH ZLOOLQJ WR WKH +XDOODJD ZKHUH WKH\ FRXOG PRUH HDVLO\ EH FRQWUROOHG IURP %RUMD 7KH &KLSHRV DQG 3DQRV HVSHFLDOO\ PXVW KDYH EHHQ UHDG\ IRU SHDFH DV PDQ\ RI WKHP KDG SDUWLFLSDWHG LQ WKH \HDU UHEHOOLRQ &KDQWUH \ +HUUHUD f /XFHUR OHG KLV FKDUJHV EDFN WR WKH +XDOODJD ,W VHHPV SUREDEOH WKDW /XFHUR KDG VHWWOHG VRPH RI WKH GHIHDWHG &RFDPD RQ WKH ODUJH ODNH NLORPHWHUV XSVWUHDP RQ WKH +XDOODJD 5LYHU ZKHUH KH ZDV WR IRXQG /DJXQDV DV HDUO\ DV ZKLOH KH UHWXUQHG WR WKH 8FD\DOL 5LYHU %\

PAGE 156

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f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

PAGE 157

/DJXQD )LJXHURD &KDQWUH \ +HUUHUD f /DJXQDV ZDV IRXQGHG ZLWK D SRSXODWLRQ RI SHRSOH 1RWLFLDV $XWHQWLFDV f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f :KHQ LW ZDV RYHU LQ WKHUH ZHUH QRW HQRXJK &RFDPLOOD OHIW LQ 6DQWD 0DULD GH *XDOODJD WR IRUP D YLDEOH YLOODJH 6RPH WLPH DIWHU WKH\ ZHUH PRYHG WR /DJXQDV ZKHUH WKH\ IRUPHG

PAGE 158

D VHSDUDWH EDUULR 1RWLFLDV $XWHQWLFDV f 7KH WUDJHG\ RI FRQWDFW KDG SOD\HG LWV ILQDO DFW 6XPPDU\ ,Q DQDO\]LQJ WKHVH ILUVW \HDUV RI FRQWDFW IURP WKH SRLQW RI YLHZ RI VRFLDO VWUDWLILFDWLRQ LW LV FOHDU WKDW ,QGLDQ VRFLHW\ LQ JHQHUDO KDG XQGHUJRQH D UDGLFDO VFKLVP IURP ZKLFK LW ZRXOG QHYHU UHFRYHU )URP WKLV WLPH RQ WKHUH ZHUH &KULVWLDQ ,QGLDQV DQG JHQWLOHV ,Q &KULVWLDQ FRPPXQLWLHV KLJK VWDWXV ZHQW WR WKH ODGLQRV ZKR ZHUH RULJLQDOO\ GHILQHG QRW UDFLDOO\ EXW DV DFFXOWXUDWHG ,QGLDQV )LJXHURD f 7KH ZKLWH VHFWRU KDG EHJXQ WR GLIIHUHQWLDWH LQWR ZKLWHV DQG PHVWL]RV UDFLDOO\ GHILQHG ZKR OLYHG WRJHWKHU LQ WKHLU RZQ WRZQ %RUMD DQG ZKR KDG EHJXQ WR VWUDWLI\ RFFXSDWLRQDOO\ LQWR D WZRFODVV V\VWHP ZLWK ZKLWHV RQ WRS 7KH PDLQ RXWOLQHV RI WKH IRXU FODVV V\VWHP ZKLWHV PHVWL]RV &KULVWLDQ ,QGLDQV DQG JHQWLOHVf KDV QRW EDVLFDOO\ YDULHG VLQFH WKDW WLPH H[FHSW WKDW WKH PHVWL]R VHFWRU KDV WHQGHG WR EOHQG ELRORJLFDOO\ HYHQ PRUH ZLWK WKH ZKLWHV 1RWDEOH LV WKH UDSLGLW\ ZLWK ZKLFK WKH &RFDPLOOD DQG &KULVWLDQ &RFDPD EHFDPH 8QFOH 7RPV LQ WKH FRQTXHVW RI RWKHU ,QGLDQV 7KLV ZDV SUREDEO\ GXH LQ SDUW DV LQ WKH

PAGE 159

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f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

PAGE 160

ILJXUHV IRU WKH &RFDQD 7DEOH OLVWV WKH PDMRU HSLGHPLFV RI WKLV SHULRG DQG HVWLPDWHV WKHLU HIIHFWV

PAGE 161

7DEOH &RFDPLOOD 3RSXODWLRQ 'HFOLQH
PAGE 162

7DEOH &RFDPD 3RSXODWLRQ 'HFOLQH
PAGE 163

7DEOH 0D M RU (SLGHPLFV LQ 0DLQDV 0LVVLRQV
PAGE 164

1RWH 7KH SRSXODWLRQ GDWD DU HLQWHQGHG DV D FRQWULEXWLRQ WR WKH GLDORJXH DERXW DERULJLQDO SRSXODWLRQV LQ ORZODQG 6RXWK $PHULFD WKH EHVW VXPPDU\ RI ZKLFK LV WR EH IRXQG LQ 'HQHYDQ ,Q &KDSWHU 9,,, RI WKLV ZRUN ZLOO EH IRXQG IXUWKHU LQIRUPDn WLRQ ZKLFK ZLOO EHDU RQ WKH VXEMHFW ,Q JHQHUDO P\ GDWD VXSSRUW 'RE\QV f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f LV WR FDOFXODWH WKH ZDWHU VXUIDFH RI WKH DFWLYH ODNHV DQG SRQGV RI WKH IORRGSODLQ DQG DSSO\ WKH ILJXUH RI SHUVRQV SHU VTXDUH NLORPHWHU RI ZDWHU VXUIDFH 7KLV ILJXUH VHHPV LQ WKH ORZHU +XDOODJD 5LYHU UHJLRQ WR EH VRPHWKLQJ RI D FRQVWDQW DQG WKHUH LV KLVWRULFDO LQIRUPDWLRQ LQ &KDSWHU 9,,, RI WKLV GLVVHUWDWLRQ WR LQGLFDWH WKDW SRSXODWLRQV LQ WKH UHJLRQ DUH RU ZHUH LQ ORQJWHUP EDODQFH ZLWK ILVK SRSXODn WLRQV LQ WKH ODNHV 7KH GLVWULEXWLRQ RI WKH ODNHV SURYLGH DGHTXDWH EXIIHU ]RQHV DQG WKXV WKH XQNQRZQ SROLWLFDO IDFWRU LV HOLPLQDWHG

PAGE 165

1RWHV r7KHVH DUH WKH ;HEHURV ,QGLDQV ZKR OLYH VRXWK RI WKH 0DUDRQ 5LYHU DQG ZKR VSHDN D &DKXDSDQD ODQJXDJH ,Q *UHHQEHUJnV FODVVLILFDWLRQ VFKHPH WKH\ EHORQJ WR WKH $QGHDQ VXEIDPLO\ RI WKH $QGHDQ(TXDWRULDO ODQJXDJH IDPLO\ 7KH\ VKRXOG QRW EH FRQIXVHG ZLWK WKH -YDUR f§6KX£UBf ZKR OLYH QRUWK RI WKH 0DUDQRQ 5LYHU DQG ZKR VSHDN D ODQJXDJH ZKLFK *UHHQEHUJ FODVVLILHV DV D VHSDUDWH VXEIDPLO\ RI WKH $QGHDQ(TXDWRULDO ODQJXDJH IDPLO\ 6WHZDUG DQG )DURQ f 7KH &RFDPLOOD ZHUH IUHTXHQWO\ UHIHUUHG WR DV *XDOODJDV EHFDXVH WKH 0DLQDV ,QGLDQV KDG UHIHUUHG WR WKHLU ULYHU DV WKDW ULYHU GRZQ WKHUH *XDULDD RU *XDULDJD LQ WKH 0DLQDV ODQJXDJHf 7KH 6SDQLVK VRPHWLPHV FDOOHG LW WKH *X£QXFR 5LYHU EHFDXVH LW SDVVHG WKURXJK ZKDW LV QRZ WKH PRGHUQ WRZQ RI +X£QXFR LQ LWV XSSHU UHDFKHV 6RPHWLPHV WKH\ FDOOHG LW 5LR GHO 0DQL 3HDQXW 5LYHUf SUREDEO\ EHFDXVH SHRSOH DORQJ LWV ORZHU UHDFKHV UDLGHG WKDW FURS 6RPHWLPHV WKH\ FDOOHG LW $PDSLDJD LQ DQRWKHU ,QGLDQ ODQJXDJH EXW WKH PHDQLQJ RI WKH WHUP DQG WKH UHDVRQ IRU LWV DSSOLFDWLRQ DUH XQFOHDU )LJXHURD -LPHQH] GH (VSDGD &/; &;/,,f

PAGE 166

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“DSR 7LJUH 3DVWD]D DQG XSSHU $PD]RQ ULYHUV :KHQ WKH &RFDPLOOD ZHUH PRYHG WR /DJXQDV LQ WKH 0DSDULQDV ROG FRQIHGHUDWHV RI WKH &RFDPD ZHUH DOVR PRYHG WKHUH IURP WKHLU RZQ +XDOODJD PLVVLRQ 7KH RULJLQDO DUUDQJHPHQW LQ /DJXQDV RI WZR VHSDUDWH YLOODJHV FKDQJHG LQ WKH QH[W IHZ GHFDGHV %\ WKH HDUO\ SDUW RI WKH WK FHQWXU\

PAGE 167

WKHUH ZDV RQH YLOODJH ZLWK IRXU EDUULRV D &RFDPD EDUULR D &RFDPLOOD EDUULR D &KLSHR EDUULR DQG D 3DQR 0DSDULQDf EDUULR %\ WKH 0DSDULQDV ZHUH JURXSHG ZLWK WKH ,WXFDOHV 6LQJDFXFKXVFDV RU $UXFXLHVf D &KDPELUD 5LYHU JURXS ZLWK D VDG KLVWRU\ RI GLVHDVH DQG IRUFHG PLJUDWLRQ 7KH IRXU EDUULRV ZHUH DUUDQJHG DORQJ WKH ODNHVKRUH LQ FUHVFHQW IDVKLRQ ZLWK D FKXUFK PLVVLRQDU\ KRXVH DQG SOD]D LQ WKH FHQWHU 1RWLFLDV $XWQWLFDV f 7KH VLWH RI WKH YLOODJH ZDV DOWXUD DQG DOO LQGLFDWLRQV DUH WKDW WKH ROGHVW EDUULR LQ /DJXQDV WRGD\ LV RQ RU YHU\ QHDU WKH ORFDn WLRQ RI WKH ROG YLOODJH FI &RQGDPLQH f )ROORZLQJ WKH PRGHO VHW XS E\ 9LFHUR\ 7ROHGR IRU WKH 3HUXYLDQ YLFHUR\DOW\ LQ WKH WK FHQWXU\ 'RE\QV DQG 'RXJKW\ f WKH /DJXQDV PLVVLRQ XVHG ,QGLDQV IRU ORFDO DXWKRULWLHV ZKLOH PDLQWDLQLQJ FRQWURO DW KLJKHU OHYHOV 7KH PLVVLRQ ZDV QRPLQDOO\ XQGHU WKH VHFXODU DXWKRULW\ RI WKH JRYHUQRU RI %RUMD DQG EHORQJHG WR WKH .LQJGRP RI 4XLWR WKDW LV WKH UHJLRQ JRYHUQHG E\ WKH 4XLWR YLFHUR\ $FWXDOO\ HDFK PLVVLRQ ZDV HIIHFWLYHO\ UXQ E\ WKH PLVVLRQDU\ LQ FKDUJH ,W ZDV KH ZKR PDGH WKH %RUMD JRYHUn QRU DZDUH RI WKH PHULWRULRXV DQG WKH FRRSHUDWLYH ,QGLDQV ,W ZDV KH ZKR LQIOXHQFHG WKH QDPLQJ RI WKH DOFDOGHV PD\RUVf DQG KH ZKR GLUHFWO\ QDPHG WKH ILVFDOHV RI WKH

PAGE 168

FKXUFK ,W ZDV KH ZKR GHFLGHG SXQLVKPHQWV DQG UHZDUGV DQG LW ZDV KH PRVW LPSRUWDQWO\ ZKR GLUHFWHG WKH HFRQRPLF OLIH RI WKH SHRSOH &KDQWUH \ +HUUHUD f ,Q WKHRU\ DXWKRULW\ LQ WKH PLVVLRQV VWHPPHG IURP WZR VRXUFHV 7KH JRYHUQRU RI WKH YLOODJH XVXDOO\ WKH OHDGHU FXUDFDf RI WKH ODUJHVW ,QGLDQ HWKQLF JURXS LQ WKH YLOODJH ZDV GLUHFWO\ QDPHG E\ WKH %RUMD JRYHUQRU 7KLV ZDV D SRVLn WLRQ ZLWK OLIH WHQXUH DQG VXFFHVVLRQ ZDV FRPPRQO\ DORQJ FRQVDQJXLQHDO OLQHV 7KHRUHWLFDOO\ WKHUH VKRXOG KDYH EHHQ UHJLGRUHV DQG DOJXDFLOHV DV SDUW RI WKH FDELOGR WKH FRXQFLO RI SROLWLFDO DXWKRULWLHVf EXW WKHUH LV QR HYLGHQFH WKDW /DJXQDV HYHU KDG VXFK SRVLWLRQV &KDQWUH \ +HUUHUD f 7KH FDELOGR ZKDWHYHU LWV FRPSRVLWLRQ HOHFWHG QHZ DOFDOGHV HDFK -DQXDU\ IRU HDFK EDUULR 7KHVH PHQ EHFDPH SDUW RI WKH QH[W \HDUnV FDELOGR 7KH DOFDOGHV KDG WR WUDYHO WR %RUMD HDFK \HDUD URXQG WULS RI WKUHH ZHHNVIRU FRQILUPDWLRQ 7KH GXWLHV RI WKH DOFDOGHV ZHUH WR PDLQWDLQ RUGHU DQG PRUDOLW\ LQ WKH EDUULRV DQG WR UHSRUW LQIUDFn WLRQV WR WKH JRYHUQRU ZKR UHSRUWHG LQ WXUQ WR WKH SULHVW 7KH SULHVW DORQH GHWHUPLQHG SXQLVKPHQW XVXDOO\ ZKLSSLQJ RU GHWHQWLRQ LQ VPDOO FHOOV LQ WKH VXQ IRU SHULRGV RI KRXUV WR WKUHH GD\V (DFK DOFDOGH FDUULHG D VWDII RI RIILFH WKH YDUD &KDQWUH \ +HUUHUD f

PAGE 169

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n SRUWHG WR WKH SULHVW E\ WKH ILVFDOHV 7KURXJK WKHP WKH SULHVW PDGH FHUWDLQ WKDW WKH FLYLO JRYHUQPHQW RI WKH YLOODJH GLG QRW VWUD\ IURP KLV FRQWURO WR WKDW RI WKH JRYHUn QRU 7KH VXSSRUW RI WKH SULHVW ZDV PDLQO\ WKURXJK FKDUJHV IRU VHUYLFHV WR WKH ,QGLDQV DOWKRXJK WKH YLFHUR\ KDG

PAGE 170

JUDQWHG WKH PLVVLRQV SHVRV SHU \HDU LQ 0DUULDJH DQG IXQHUDOV ZHUH FRPPRQO\ SDLG IRU ,W ZDV FXVWRPDU\ WR SODQW ILHOGV IRU WKH SULHVW WKH SURFHHGV RI ZKLFK ZHUH SDUWO\ UHGLVWULEXWHG (DVWHU RIIHULQJV RI EDVNHWV RI IRRG WKH FDPDULFRf DQG HQG RI \HDU IRRG RIIHULQJV ZHUH FRPPRQ 6RPHWLPHV WKH RIIHULQJV ZHUH GHPDQGHG WZLFH D \HDU WKH FKDXSLJXDWD RU KDOI\HDU LQ 4XHFKXDf &HUWDLQ GXWLHV WRZDUG WKH SULHVW ZHUH RZHG E\ FKLOGUHQ DWWHQGLQJ FDWKH TXLVP &RQIHVVHG VLQQHUV DOVR RZHG GXWLHV WR WKH SULHVW 6RPH RI WKHVH GXWLHV LQFOXGHG KXQWLQJ PHDW DQG VXFK KXQWHUV ZHUH FDOOHG PLWD\HURV 7KH RIIHULQJV ZHUH IUHTXHQWO\ SDLG LQ ZKLWH ZD[ WKH FXUUHQF\ RI WKH WLPH WR EH XVHG IRU FDQGOHV &KDQWUH \ +HUUHUD f ,Q DGGLWLRQ WR WKHVH REOLJDWLRQV WKH ,QGLDQV ZHUH FDOOHG RQ WR JDWKHU ZKLWH ZD[ UHVLQV YDQLOOD DQG RWKHU IRUHVW SURGXFWV WR VHQG WZLFH D \HDU WR 4XLWR 7KHVH SURGXFWV ZHUH H[FKDQJHG IRU IORXU DQG ZLQH IRU WKH FKXUFK FORWKHV IRU WKH SULHVW DQG LURQ WRROV &RPPHUFLDO H[SHGLn WLRQV ZHUH DOVR VHQW UHJXODUO\ WR /DPDV DQG WR 0R\REDPED WR REWDLQ ILVK SRLVRQ VXJDU DQG FRWWRQ FORWK WRFX\R OLHQ]R ORQDf IRU FORWKLQJ DQG IRU PRVTXLWR QHWV IRU WKH ,QGLDQV &KDQWUH \ +HUUHUD f

PAGE 171

$Q LQGLFDWLRQ RI WKH VRUWV RI JRRGV ZKLFK IRUPHG WKH EXON RI WKH H[FKDQJH FRPHV IURP D UHSRUW RI D /DJXQDV GLVDVWHU LQ 7KH FKXUFK DQG PLVVLRQDU\ KRXVH EXUQHG GRZQ DV ZHOO DV WKH HQWLUH 3DQR EDUULR 7KH IROORZLQJ LWHPV ZHUH ORVW 6L[ DUUREDV RI ZKLWH ZD[ YDUDV RI ,RQD 7REDFFR 7RROV 7KH PLVVLRQ UHFRUGV ZHUH DOVR ORVW DQG WKH 3DQRV ZHUH YHU\ DQJU\ DW WKH SULHVW ZKR KDG VWDUWHG WKH ILUH WHVWLQJ URFNHWV IRU D ILHVWD &KDQWUH \ +HUUHUD f 3UREDEO\ WKH PRVW VHULRXV GLVUXSWLRQ WR WKH QRUPDO HFRQRPLF OLIH RI WKH ,QGLDQV ZDV WKH HQWUDGDV DQG H[SHGLn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

PAGE 172

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f 8QGHU -HURQLPR 9DFD ZKR WRRN RYHU WKH %RUMD JRYHUQPHQW LQ DQ ,QGLDQ PLOLWLD ZDV IRUPHG LQ HDFK PLVVLRQ $OO DEOHERGLHG PHQ IURP WR ZHUH UHTXLUHG WR VHUYH DQG LQ /DJXQDV HDFK EDUULR KDG LWV RZQ OLWWOH DUP\ IRU WKH HQWUDGDV PHQWLRQHG DERYH 0RUHRYHU HDFK JURXS XVHG LWV RZQ ZHDSRQV WKH &RFDPD DQG &RFDPLOOD XVLQJ WKH VSHDU WKURZHU DQG ZDU FOXE PDFDQDf &KDQWUH \ +HUUHUD f ,Q DGGLWLRQ PDOH ODERU ZDV XVHG IRU YLOODJH PDLQn WHQDQFH DQG EXLOGLQJ FDQRHV IRU SXEOLF XVH :RPHQ NHSW WKH SOD]D FOHDQ DQG VDQGHG LW UHJXODUO\ ZLWK ZKLWH VDQG WR NHHS WKH JUDVV GRZQ ,QGLDQ PHQ ZHUH VHQW WR WKH VDOW GHSRVLWV QHDU WKH SRQJR GH $JXLUUH D ZHHN XSVWUHDP IURP -XO\ WR 2FWREHU WR PLQH VDOW IRU WKH PLVVLRQV

PAGE 173

,W VKRXOG EH HPSKDVL]HG WKDW IURP WKH WLPH WKH &RFD PLOOD ZHUH WUDQVIHUUHG WR /DJXQDV LQ XQWLO WKH H[SXOn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f 7KH ODZV UHTXLUHG WKDW WKH &RFDPLOOD DQG RWKHU ,QGLDQV EH SDLG IRU WKHLU VHUYLFH ,W LV QRW NQRZQ ZKHWKHU WKH\ ZHUH DFWXDOO\ SDLG IRU PLOLWLD H[SHGLWLRQV EXW LW LV SUREDEOH WKDW WKH\ ZHUH SDLG IRU FRPPHUFLDO WUDGH DV JDWKHUHUV

PAGE 174

RU DV FDQRHPHQ &KDQWUH UHSRUWV D ZDJH RI DSSUR[LPDWHO\ UHDOHV SHU GD\ IRU FDQRHPHQ EXW LW LV H[WUHPHO\ GRXEWn IXO WKDW WKH\ ZHUH SDLG LQ FDVK ,W WRRN WKUHH GD\V WR FROOHFW DQ DUURED RI FDFDR ZRUWK HLJKW UHDOHV ,W WRRN DERXW WKH VDPH DPRXQW RI WLPH WR FROOHFW D SRXQG RI ZKLWH ZD[ DOVR ZRUWK DERXW HLJKW UHDOHV 7KH SULFH RI D KDWFKHW ZDV WKUHH SRXQGV RI ZD[ RU WHQ GD\V ZRUN $ JUHHG\ JRYHUQRU GRXEOHG WKH SULFHV LQ &KDQWUH \ +HUUHUD f 7KH HFRQRP\ RI WKH &RFDPLOOD ZDV WKXV TXLFNO\ WUDQVn IRUPHG IURP D VLPSOH HFRQRP\ RI UHFLSURFLW\ LQ 3RODQ\LnV WHUPV f WR DQ HFRQRP\ ZKLFK E\ WKH HQG RI WKH -HVXLW SHULRG KDG DFTXLUHG FKDUDFWHULVWLFV RI ERWK UHGLVWULn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

PAGE 175

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n WLRQV PHQWLRQHG LQ WKH OLWHUDWXUH ZHUH &RUSXV &ULVWL DQG 6HPDQD 6DQWD DOWKRXJK WKH FHOHEUDWLRQ RI VSHFLDO VDLQWnV GD\V $OO 6DLQWV &KULVWPDV 1HZ
PAGE 176

7KH FHOHEUDWLRQ RI 6HPDQD 6DQWD LQFOXGHG D SDUDGH RI WKH SHQLWHQWV LQ ZKLFK PHQ ZRXOG PDUFK IRU WZR QLJKWV ODVKLQJ WKHPVHOYHV ZLWK ZKLSV DQG WKRQJV WLSSHG ZLWK EDOOV RI UXEEHU LQWR ZKLFK VKDULV RI JODVV ZHUH HPEHGGHG 7KLV VHOIIODJHOODWLRQ ZRXOG RIWHQ ZRXQG WKHP VHULRXVO\ DQG WKH SULHVWV KDG VRPHWLPHV WR UHVWUDLQ RYHU]HDORXV SHQLWHQWV 7KLV FXVWRP VSUHDG YHU\ UDSLGO\ ,WV VSUHDG SUREDEO\ UHSUHn VHQWV WKH FRLQFLGHQFH RI D QDWLYH 7XSLDQ FXVWRP RI VHOI VFDULILFDWLRQ DQG WKH DVFHWLFLVP DQG VHOIPRUWLILFDWLRQ RI ZKLFK WKH -HVXLWV ZHUH IRQG 1RWLFLDV $XWQWLFDV &KDQWUH \ +HUUHUD (GPXQVRQ f 7KH \HDUV IURP XQWLO WKH HQG RI WKH -HVXLW SHULRG ZHUH PDUNHG E\ D GHWHUPLQHG WKUXVW E\ WKH 3RUWXJXHVH FRORn QLVWV RQ WKH ORZHU $PD]RQ LQWR WKH 6SDQLVK WHUULWRU\ LQ WKH ORZODQG WURSLFV RI ZKDW LV QRZ 3HUX 7KH ,QGLDQV RQ WKH ORZHU ULYHU ZHUH HQVODYHG DQG WKH\ GLHG HYHQ PRUH UDSLGO\ WKDQ WKHLU FRXQWHUSDUWV LQ WKH 0DLQDV PLVVLRQV 6ODYLQJ H[SHGLWLRQV DGYDQFHG IDUWKHU DQG IDUWKHU XS WKH ULYHU HDFK \HDU DQG JURXSV VXFK DV WKH 2PDJXD
PAGE 177

TXLFNO\ DQG WKH PLVVLRQ ZDV DEDQGRQHG E\ WKH VXUYLYRUV )LIW\ IDPLOLHV RI
PAGE 178

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f LQ DGGLn WLRQ WR WKH H[WUHPH FXOWXUDO PL[LQJ PHQWLRQHG DERYH PHDQW WKHLU HIIHFWLYH GHVWUXFWLRQ DV D FXOWXUH &KDQWUH t +HUUHUD 1RWLFLDV $XWHQWLFDV f /HJXQDV FRQWLQXHG WR VXIIHU HSLGHPLFV ,Q WKHUH ZDV DQRWKHU RXWEUHDN RI VPDOOSR[ 7KLV WLPH WKH SULHVW *DVSDU 9LGDOf GLG QRW SHUPLW WKH &RFDPD DQG &RFDPLOOD WR GLVSHUVH 0DQ\ GLHG DV D FRQVHTXHQFH -RXDQHQ f f ,Q WKH +XDOLDJD ZDV VZHSW E\ D QHZ GLVHDVH PHDVOHV 6PDOOSR[ KLW DJDLQ LQ DQG DJDLQ LQ ,W DSSHDUV WKDW QDWXUDO DQWLERGLHV KDG EHFRPH ZHDNHQHG LQ WZR JHQHUDWLRQV *URKV f KDV DVVHPEOHG

PAGE 179

SDUW RI WKH GDWD 7DEOH f IRU /DJXQDVn SRSXODWLRQ GXULQJ WKH -HVXLW SHULRG 7KH VPDOOSR[ HSLGHPLF ZDV WKH ZRUVW LQ LQWHQVLW\ 7ZR KXQGUHG &RFDPLOOD DQG 3DQRV GLHG LQ /DJXQDV +DOI RI WKH
PAGE 180

7DEOH 3RSXODWLRQ RI /DJXQDV IURP WR
PAGE 181

WR /DJXQDV 7KH 7LELOR PLVVLRQ ZDV PHUJHG ZLWK WKH &KDPLFXUR PLVVLRQ ZKLFK KDG SHRSOH DW WKH WLPH RI WKH -HVXLW H[SXOVLRQ &KDPLFXUR ODUJHO\ HVFDSHG WKH HIIHFWV RI WKH HSLGHPLF EHFDXVH RI D IRUP RI YDFFLQDWLRQ ZLWK SXVWXOH PDWHULDO FDUULHG RXW E\ 3DGUH (VTXLQL \HDUV EHIRUH -HQQHU GHYHORSHG D YDFFLQH 8ULDUWH ,QGH[f 7KH 'HSDUWXUH RI WKH -HVXLWV 7KH H[SXOVLRQ RI WKH -HVXLWV LQ FDPH DV QR VXUn SULVH 7KH 3RUWXJXHVH KDG VXSSUHVVHG WKHP QHDUO\ WHQ \HDUV EHIRUH WKH 6SDQLVK JRW DURXQG WR LW +RZHYHU WKH YDFXXP FUHDWHG E\ WKHLU GHSDUWXUH ZDV QHYHU ILOOHG E\ WKH )UDQn FLVFDQ DQG VHFXODU SULHVWV ZKR IROORZHG WKHP 7KH QRWLFH FDPH LQ 6HSWHPEHU RI DQG WKH ODVW SULHVWV OHIW LQ $SULO RI 7KLUW\ VHFXODU FOHULFV LQ -HVXLW UREHV DUULYHG IURP 4XLWR IRU WKH WUDQVLWLRQ EXW DW OHDVW WHQ RI WKHP ZHQW VWUDLJKW EDFN WR 4XLWR 7KH\ ODFNHG WKH YRFDWLRQ RI WKH -HVXLWV $W OHDVW RQH RI WKH EURNH LQWR WHDUV ZKHQ KH UHDOL]HG KH ZDV WR OLYH DQG ZRUN LQ 6DQ -RDTXLQ WKH HQGV RI WKH HDUWK &KDQWUH t +HUHUUD ,]DJXLUUH ff

PAGE 182

7KH ,QGLDQV NQHZ EHWWHU WKDQ DQ\RQH WKDW H[SXOVLRQ PHDQW WKDW WKH -HVXLW SROLWLFDO EXIIHU ZDV ORVW WR WKHP 1HDUO\ DOO WKH QHZ UHGXFWLRQV ZHUH H[WLQn JXLVKHG 7KH ,QGLDQV RSSUHVVHG E\ WKH DXWKRULWLHV DQG WKH WUDGHUV DEDQGRQHG FLYLO OLIH DQG UHWXUQHG WR WKHLU ROG FXVWRPV RU PDGH GHVSHUDWH E\ WKH RSSUHVVLRQ YDULRXV YLOODJHV UHEHOOHG DQG JDYH GHDWK WR WKHLU RSSUHVVRUV &RPSWH f 4XLWR )UDQFLVFDQV TXLFNO\ IROORZHG WKH VHFXODUV EXW PDQ\ RI WKHP VRRQ GHVHUWHG WKH PLVVLRQV /DJXQDV DQG &KDPLFXUR ZHUH OHIW ZLWKRXW D SULHVW XQWLO &RPSWH f )UDQFLVFR 5HTXHQD KDG WKLV WR VD\ LQ 0DQ\ GHVHUWHG 6RPH VWD\HG YROXQWDULO\ LQ YLOODJHV WKH\ OLNHG DQG RWKHUV WUDYHOHG DERXW WKH SURYLQFH DW WKHLU GLVFUHWLRQ YDJUDQWV &RPSWH f &URZQ RIILFLDOV ZHUH QR OHVV ZRUULHG WKDQ WKH ,QGLDQV DW WKH GHFD\ RI 0DLQDV PLVVLRQV 7R NHHS WKH 3RUWXJXHVH DW ED\ YDULRXV GHFUHHV ZHUH SURPXOJDWHG ,Q WKH SRVW RI 9LFDU RI 0LVVLRQV ZDV FUHDWHG LQ /DJXQDV 7KH PLVVLRQV ZHUH VXSSRVHG WR KDYH WKH UHJLPHQ RI WKH 8UXJXD\ DQG 3DUDQ£ PLVVLRQV ,Q WKH 4XLWREDVHG )UDQFLVFDQV ZHUH ZLWKGUDZQ DQG VHFXODU FOHULFV PRYHG LQ DJDLQ 3DUGR \ %DUUHGD &RUQHMR ;;9,, &RPSWH f )UDQFLVFDQV IURP 6DQWD 5RVD GH 2FRSD UHSRUWHG LQ D OHWWHU WR .LQJ &KDUOHV ,,, LQ WKDW WKH 3RUWXJXHVH

PAGE 183

KDG DFWXDOO\ WDNHQ RYHU /DPDV LQ WUDYHOLQJ XS WKH +XDOODJD WR GR VR 7KLV ZDV QRW WKH RQO\ WLPH WKH\ KDG DGYDQFHG VR IDU 7KH VXJJHVWLRQ ZDV PDGH WKDW DGHTXDWH ERDWV VKRXOG EH SODFHG RQ WKH ULYHUV WR SURWHFW QDWLRQDO WHUULWRU\ WR UHFRQTXHU WKH ,QGLDQV DQG WR UHLQWURGXFH UHOLJLRQ DQG VRFLDO OLIH ,]DJXLUUH f 8JDUWH f 6RPH RI WKH &RFDPLOOD LQ /DJXQDV EHJDQ WR KLGH DORQJ LVRODWHG ODNHV DQG VWUHDPV DW WKLV WLPH ,W VHHPV SUREDEOH WKDW DQ\ RI WKH &KLSHR RU ;LWLSR ,QGLDQV OHIW DOLYH E\ HSLGHPLFV DOVR GLVSHUVHG 7KH &KLSHR;LWLSR EDUULR LV QHYHU DJDLQ PHQWLRQHG 7KH $JXQDRV DQG &KDPLFXURV EURXJKW IURP 6DQ $QWRQLR DQG 6DQ ;DYLHU EHJDQ WR IRUP WKH IRXUWK EDUULR 7KH SRSXODWLRQ LQ /DJXQDV KDG GURSSHG IURP LQ WR LQ -RXDQHQ f f +RZn HYHU E\ /DJXQDV ZDV EDFN WR ,]DJXLUUH ff 0LOLWDU\ 5XOH LQ 0DLQDV ,Q )UDQFLVFR 5HTXHQD ZDV VHQW WR 0DLQDV DV JRYHUQRU DQG FKLHI RI D PLOLWDU\ IRUFH WR EH VWDWLRQHG DW 7HIH LQ ZKDW LV QRZ %UD]LO 7KLV IRUFH ZDV WR SUHYHQW IXUWKHU 3RUWXJXHVH XSULYHU H[SDQVLRQ 7KH ,QGLDQV RI

PAGE 184

0DLQDV QRZ GLUHFWO\ GRPLQDWHG E\ ZKLWHPHVWL]R JRYHUQRUV KDG WR SD\ WKH EXUGHQ RI VXSSRUWLQJ WKH WURRSV 0DQXHO 6REUHYLHOD WKH )UDQFLVFDQ JXDUGLDQ RI WKH 2FRSD &ROOHJH WUDYHOHG WR WKH 0DLQDV PLVVLRQV DIWHU 5HTXHQD UHLQVWDWHG WKH )UDQFLVFDQV LQ +H IRXQG WKH ,QGLDQV LQ
PAGE 185

PLVVLRQV E\ 5HTXHQD IURP ZKLFK WKH ZRPHQ PDGH IDULQD PDQLRF IORXUf WR IHHG WKH 7HIH WURRSV ,]DJXLUUH f f 7KH ZDJHV IRU FDQRH ZRUN KDG GURSSHG WR UHDOHV SHU PRQWK LQ WRROV DQG FORWKHV L]DJXLUUH ff 7KH SULFH IRU IDULQD ZDV VXSSRVHG WR EH ILYH UHDOHV IRU SRXQGV DERXW IRXU GD\V RI ZRUN QRW FRXQWLQJ SODQWLQJ DQG FXOWLYDWLQJ ZDV LQYROYHG LQ SURGXFLQJ WKLV DPRXQW 7KH SROLWLFDO V\VWHP RI /DJXQDV KDG FKDQJHG UDGLFDOO\ /DJXQDV VWLOO KDG IRXU EDUULRV QRZ &RFDPD &RFDPLOOD 3DQR DQG $JXDQR&KDPLFXUR EXW WKH JRYHUQRU ZDV QRZ 6SDQLVK (IIHFWLYH FRQWURO KDG SDVVHG IURP WKH SULHVW WR WKH 6SDQLVK JRYHUQRU EDFNHG XS E\ VROGLHUV ZKR QRZ OLYHG LQ WKH YLOODJH 7DEOH f $ OHWWHU IURP 5HTXHQD WR 6REUHYLHOD LQ LQGLFDWHV VRPH RI WKH FXUUHQW SUDFWLFH 5HTXHQD WKRXJKW WKDW ZKLSSLQJ ZLWK PDQDWHH OHDWKHU ZKLSV ZDV GDPDJLQJ WR WKH KHDOWK DQG WRR VH[XDOO\ WLWLOODWLQJ ZKHQ WKH FXOSULWnV SDQWV DQG VKLUW ZHUH UHPRYHG +H SUHIHUUHG SDOP ZKLSV DQG SULVRQ ZKLFK WKH &RFDPLOOD KDWHG ZRUVH WKDQ ZKLSSLQJ 7KH &RFDPLOOD VOHHSLQJ DUUDQJHPHQW LQ ZKLFK ZKROH IDPLOLHV OD\ RQ ZRRGHQ SODWIRUPV XQGHU D FRPPRQ PRVTXLWR QHW D FXVWRP SUDFWLFHG VLQFH EHIRUH WKH FRQTXHVW ZDV LPPRUDO LQ KLV H\HV :KDW H[FHVVHV PLJKW QRW EH FRPPLWWHG ZKHQ WKH KXVEDQG ZDV RXW

PAGE 186

7DEOH /DJXQDV 3ROLWLFDO 2UJDQL]DWLRQ )UDQFLVFR 5HTXHQH *RYHUQRU LQ -HEHURVf -XDQ 6DOLQDV /DJXQDV /LHXWHQDQW *RYHUQRUf %DUULR ,QGLDQ L 6SDQLVK _
PAGE 187

RI WRZQ DQG WKH ZLIH ZDV VOHHSLQJ ZLWK KHU DGXOW VRQV KH SURWHVWHG +H ZDQWHG WKH QXFOHDU IDPLO\ LVRODWHG LQ D VHSDUDWH KRXVH KH GLG QRW VXFFHHG LQ WKLVf +H ZDQWHG WKH /DJXQDV ,QGLDQV WR VWRS SDLQWLQJ WKHLU ERGLHV ZLWK KXLWR JHQLSDf G\H 7KH &RFDPLOOD ZRPHQ ZHUH WR VWRS ZHDULQJ WKH SDPSDQLOOD VNLUW DQG WR ZUDS WKHLU ERGLHV PRGHVWO\ +H ZDQWHG WKH ,QGLDQV WDXJKW 6SDQLVK KROGLQJ 4XHFKXD WR EH WRR IRUHLJQ (YHQ EHWWHU KH WKRXJKW ZRXOG EH ELOLQJXDO VFKRROV ,]DJXLUUH ff 5HTXHQDV UHFRPPHQGDWLRQV WR WKH .LQJ LQ DQRWKHU OHWWHU ZHUH WR KDYH IDUUHDFKLQJ FRQVHTXHQFHV +H WKRXJKW WKDW WKH JHQHUDO FRPPDQG RI 0DLQDV DQG RWKHU ORZODQG PLVVLRQ DUHDV WKHQ XQGHU WKH FRQWURO RI 4XLWR VKRXOG EH XQGHU WKH FRQWURO RI WKH YLFHUR\ RI 3HUX IRU HDVLHU GHIHQVH ,]DJXLUUH f f ,Q WKH HFFOHVLDVWLF VSKHUH 5HTXHQD ZDQWHG WKH 2FRSDQ )UDQFLVFDQV WR EH JLYHQ WKH PLVVLRQV 7KH FOHULFV IURP 4XLWR KH VDLG GLGQfW HYHQ NQRZ KRZ WR VD\ PDVV 7KH\ KDG DEDQGRQHG WKH VPDOOHU WRZQV DQG FRQn FHQWUDWHG LQ WKH ODUJHU RQHV 7KH WRWDO QXPEHU RI ,QGLDQV LQ WKH PLVVLRQV KDG FRQVHTXHQWO\ GZLQGOHG IURP LQ &KDQWUH \ +HUUHUV f WR LQ ,]DJXLUUH ff 5HTXHQD ZDQWHG DQ HSLVFRSDO VHDW WR EH FUHDWHG IRU 0DLQDV WR LQFOXGH /DPDV DQG 0R\REDPED

PAGE 188

DV ZHOO DV WKH ORZODQG WURSLFDO IRUHVW ,]DJXLUUH ff ,Q WKH &URZQ JDYH WKH /LPD YLFHUR\ 0DLQDV DQG 4XLMRV LQFOXGLQJ WKH HQWLUH 0RURQD +XDOODJD 3DVWD]D 8FD\DOL 1DSR
PAGE 189

$JXDQR&KDPLFXUR EDUULR DQG WKH &RFDPLOOD EDUULR EHFDPH ZRUVH DQG ZRUVH LQ WKH HDUO\ SDUW RI WKH WK FHQWXU\ XQWLO LQ 0DZ VD\V EXW D FRS\ RI WKH DFW RI IRXQGDWLRQ H[LVWV LQ /DJXQDVf WKH $JDQRV DQG &KDPLFXURV ZHUH SHUPLWWHG WR OHDYH /DJXQDV DQG UHVHWWOH RQ WKH VLWH RI WKH ROG PLVVLRQ RI 6DQ $QWRQLR GH $JDQRV 7KH UHn VHWWOHPHQW ZDV FDOOHG 6DQWD &UX] GHO +XDOODJD LQ RIILFLDO GRFXPHQWV EXW SHUVLVWV DV 6DQ $QWRQLR GH $EDG GH 6DQWD &UX] LQ EDSWLVP UHFRUGV XQWLO ODWH LQ WKH WK FHQWXU\ 0DZ /DJXQDV 3DULVK $UFKLYHVf 7KH &RFDPLOOD FDOOHG LW VLPSO\ $JXDQR ,Q %LVKRS 5DQJHO GHQRXQFHG WKH WUHDWPHQW RI WKH ,QGLDQV XQGHU WKH ORQJWHUP PLOLWDU\ UHJLPH LQWURGXFHG E\ 5HTXHQD ,Q D OHWWHU WR WKH DUFKELVKRS /DV +HUDV KH VDLG WKH IROORZLQJ =7KHUH DUHBn LPPHQVH H[SHQVHV WR PDLQWDLQ WKH OD]\ DQG WKH OLEHUWLQHV SHUGLWLRQ RI WKH ,QGLDQV ZLWK VFDQGDOV ZKLFK WKH\ KDYH QRW \HW VHHQ LQWROHUDEOH SXQLVKPHQWV WR UHGXFH WKHP WR WKH EDUEDURXV RU FDSULFLRXV V\VWHP RI WKH JRYHUQRUV ,Q D ZRUG VR PXFK EDG DV FDQ EH LPDJLQHG KDV SURGXFHG WKH 7HI H[SHGLWLRQ $W LWV ILQLVK ZLWKRXW KDYLQJ DFKLHYHG LWV HQGV LQ \HDUV WKH PHQ DUH QRZ IRXQG KHUH YHJHWDWLQJ 8JDUWH WUDQVODWLRQ PLQHf 7KLV VLWXDWLRQ RI RSSUHVVLRQ XQGHU D GLUHFW PLOLWDU\ SUHVHQFH ZDV HQGHG E\ WKH :DU RI ,QGHSHQGHQFH 0R\REDPED

PAGE 190

GHFODUHG LWV LQGHSHQGHQFH LQ $XJXVW RI 7KH ORZODQG WURSLFDO IRUHVW WRZQV DQG YLOODJHV UHPDLQHG UR\DOLVW IRU D WLPH EXW WKH LVVXH ZDV GHFLGHG QRW E\ VROGLHUV EXW E\ WKH IOLJKW RI UR\DOLVW RIILFLDOV WR 3HEDV RQ WKH %UD]LOLDQ ERUGHU %LVKRS 5DQJHO OHIW ODWH LQ VD\LQJ WKDW WKHUH ZDV QR ORQJHU DQ\ JRYHUQPHQW LQ 0DLQDV QRU DQ\ WURRSV 7KH\ KDG DOO EHHQ FDOOHG DZD\ WR ILJKW LQ PRUH SURILWDEOH ]RQHV 0DLQDV DQG 4XLMRV ZHUH FRPELQHG DQG PDGH LQWR D GHSDUWPHQW RI WKH QHZ UHSXEOLF LQ /DUUDEXUH \ &RUUHD f ff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n WLDQLW\ 7KH ZKLWHPHVWL]R VHFWRUV RI ORZODQG VRFLHW\ EHFDPH PRUH GLIIHUHQWLDWHG DV HQWUHSUHQHXUV WUDGHUV

PAGE 191

SROLWLFDO RIILFLDOV UHOLJLRXV RIILFLDOV VROGLHUV DQG LQ WKH ERUGHU DUHDV VXFK DV %RUMDf ODQGKROGHUV PXOWLSOLHG DQG FUHDWHG PRUH DQG PRUH HFRQRPLF QLFKHV WKH H[SORLWDWLRQ RI ZKLFK QHHGHG ,QGLDQ ODERU $JDLQ LW VKRXOG EH VWUHVVHG WKDW GXULQJ WKLV SHULRG WKHUH ZDV QR GLUHFW RFFXSDWLRQ RI ,QGLDQ ODQGV RU ZDWHUV LQ PRVW RI WKH ORZODQG IRUHVW DUHDV RI 3HUX 7KH &KULVWLDQ ,QGLDQ HFRQRP\ KDG WR DGMXVW WR LQFUHDVHG GHPDQGV IRU VXSSRUW RI WURRSV DQG RIILFLDOV DQG WKH\ ZHUH IRUFHG RU LQGXFHG WR SURYLGH ODERU IRU WKH VWLOOQDVFHQW H[WUDFWLYH LQGXVWULHV 6RPH ZHUH SXW WR ZRUN SURGXFLQJ FUDIWV EXW RQO\ WKH ,QGLDQV XQGHU WKH GLUHFW FRQWURO RI WKH JRYHUQRU JHQHUDO LQ -HEHURV 7KH &RFDPLOOD IRXQG WKHLU QLFKH DV ULYHUPHQ IRU H[SRUW DQG LPSRUW RSHUDWLRQV H[SORUDWLRQ DQG DV ILVKHUPHQ IRU WKH ZKLWHPHVWL]R VHFWRUV 7KH\ ZHUH OHVV ZLOOLQJ WR EH IRUHVW DQG ILHOG ZRUNHUV DV WKH QH[W FKDSWHU ZLOO VKRZ 7KHLU RZQ VXEVLVWHQFH HFRQRP\ DQG PDQ\ RI WKHLU FXOWXUDO DUUDQJHPHQWV ZHUH DIIHFWHG EXW QRW GHVWUR\HG E\ WKH LQFUHDVHG GHPDQGV SODFHG RQ WKHP )RUHVW ,QGLDQV ZKR ZHUH &KULVWLDQL]HG DQG EURXJKW WR WKH ULYHUV ZHUH QRW VR IRUWXQDWH 7KRVH ZKR VXUYLYHG EHFDPH FXOWXUDOO\ PRUH DQG PRUH OLNH WKH ULYHU ,QGLDQV WR WKH SRLQW WKDW WKH\ GLVDSSHDUHG DV HWKQLF JURXSV ,Q WKH ORZHU +XDOODJD UHJLRQ RQO\ WKH ;HEHURV DQG WKH &KDPLFXUR OHIW LQ WKHLU SUHFRQTXHVW LQODQG ORFDWLRQV VXUYLYHG WKH SHULRG

PAGE 192

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f ZHUH WR EH JLYHQ ODQG DQG LI OLWHUDWH WKH\ FRXOG VHOO LW ,Q WKH IRUFHG ZRUN RI ,QGLDQV ZDV SURKLELWHG E\ SUHIHFWXUDO GHFUHH ,Q WKH ODZ IRUEDGH FRQWULEXWLRQV E\ ,QGLDQV LQ 0DLQDV ,Q SHUVRQDO VHUYLFH DQG JUDWXLWLHV JLYHQ E\ ,QGLDQV WR WKH IHZ SULHVWV LQ 0DLQDV ZDV IRUELGGHQ ,Q 3UHVLGHQW 5DPRQ &DVWLOOD GHFODUHG WKH HQWLUH PRQWDQD LQFOXGLQJ WKH ORZn ODQGV IUHH RI WD[HV DQG VSRNH RXW DERXW WKH QHHG WR

PAGE 193

Y

PAGE 194

SURWHFW WKH FLYLOL]DWLRQ RI WKH 6DYDJHV )RUFHG ODERU ZDV DJDLQ SURKLELWHG LQ 7ULEXWH SD\PHQWV WKH GLH]PRf ZHUH IRUELGGHQ LQ DJDLQ /DUUDEXUH \ &RUUHD f f f f? f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

PAGE 195

WURSLFDO IRUHVW %\ WKH WRZQV RI $QGRDV DQG 3LQFKHV RQ WKH 3DVWD]D 5LYHU ZHUH WKUHDWHQHG E\ ,QGLDQV /DUUDEXUH \ &RUUHD f f f f" f +HUQGRQ /DJXQDV 3DULVK $UFKLYHV 3HQD f 0DQ\ RI WKHVH DUHDV ZHUH QRW SDFLILHG DJDLQ XQWLO WKH WK FHQWXU\ 7KH UHVSRQVH WR LQGHSHQGHQFH LQ /DJXQDV DPRQJ &KULVWLDQ ,QGLDQV ZDV D VPDOOVFDOH UHEHOOLRQ DQG GLVSHUVDO +RVn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f f /DJXQDV 3DULVK $UFKLYHV FRS\ RI GRFXPHQW 0DZ f

PAGE 196

%\ /DJXQDV ZDV ODUJHO\ D &RFDPLOOD WRZQ 7KH GHPRJUDSKLF HIIHFWV RI ,QGHSHQGHQFH DUH VXJJHVWHG E\ FRPn SDULQJ VRPH FHQVXVHV RI WKH WLPH /DJXQDV VKUDQN UDSLGO\ DQG VPDOOHU WRZQV KHOG WKHLU RZQ RU JUHZ VHH 7DEOH f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

PAGE 197

7DEOH 3RSXODWLRQV LQ WKH /RZHU +XDOODJD 5HJLRQ
PAGE 198

DQG KXQWHUV FDOOHG WKHP DUURJDQW LPSXGHQW DQG EHOOLn FRVH /DUUDEXUH \ &RUUHD ff 7KH\ KDG WR EH WUHDWHG ZLWK GHOLFDF\ ,Q WKH\ WKUHDWHQHG WKH OLIH RI D /DJXQDV SULHVW ZKHQ KH WULHG WR ZKLS RQH RI KLV PLWD\HURV ,MXUUD VDLG WKH\ IHOW WKHPVHOYHV VXSHULRU WR WKH RWKHU ,QGLDQV /DUUDEXUH \ &RUUHD f f 7KH &RFDPD ZKR KDG SDUWLFLSDWHG LQ WKH /DJXQDV XSULVLQJ ZHUH FDOOHG LQVXERUGLQDWH E\ DQ RIILFLDO RI WKH WLPH DQG WKH &RFDPLOOD ZHUH ZRUVH LQFRUULJLEOH LQ WKHLU IHURFLW\ /DUUDEXUH \ &RUUHD ff )UHHGRP IRU WKH PDLQ SDUW RI WKH &RFDPLOOD ZDV RQO\ D WRNHQ DQG RQO\ WHPSRUDU\ 2EMHFWLYHO\ WKH\ ZHUH FDXJKW XS E\ DQ HYHUGLYHUVLI\LQJ QDWLRQDO DQG LQWHUQDWLRQDO HFRQRP\ $V SDFLILHG &KULVWLDQ ,QGLDQV WKHLU SODFH LQ WKH HFRQRP\ ZDV DW WKH ERWWRP DV EDVLF SURGXFHUV DQG ZDJH ZRUNHUV $V ULYHULQH ,QGLDQV WKHUH ZDV QR SODFH WR UXQ 'HPDQGV RQ WKHP FDPH IURP IRXU EDVLF VRXUFHV LQ WKH WK FHQWXU\ 7KHUH ZHUH f WKH JRYHUQRUV DQG RWKHU SROLWLFDO DXWKRULWLHV f WKH H[WUDFWRUV RI IRUHVW DQG ULYHU SURGXFWV ZKR ZHUH DOVR PHUFKDQWV f WKH FKXUFK f WKH ORZODQG KDFLHQGD SDWURQV DIWHU

PAGE 199

&RPSHWLWLRQ IRU ,QGLDQ /DERU 'HPDQGV E\ WKH JRYHUQRUV QHYHU VWRSSHG EXW WKH\ EHn FDPH IRU D WLPH OHVV DEOH WR HQIRUFH WKHP DV FRPSHWLWLRQ PXOWLSOLHG ,Q WKH /DJXQDV &RFDPLOOD ZHUH GRPLQDWHG E\ )RUWXQDOWR 6XPDOWD WKH /DJXQDV JRYHUQRU +H KDG WKHP SURGXFLQJ ZD[ VDOW ILVK DQG WXUWOHV ZKLFK KH H[FKDQJHG LQ 0R\REDPED IRU WRFX\R FORWK 7KH\ DOVR SURGXFHG PDQDWHH RLO DQG ]DU]DSDULOOD ZKLFK KH VHQW GRZQVWUHDP WR %UD]LO WR EH WUDGHG IRU NQLYHV KRRNV PDFKHWHV DG]HV EHDGV DQG LPSRUWHG FORWK IRU KLV RZQ FORWKHV 0DZ f 6RPHWLPH EHIRUH WKH JRYHUQRUV LPSRVHG WKH UHPHVD WULEXWH DW IUHTXHQW LQWHUYDOV FRQVLVWLQJ RI GHPDQGV IRU HDFK &RFDPLOOD PDOH WR SUHVHQW SLH]DV SLHFHVf RI VDOW ILVK RU PHDW WR WKH JRYHUQRU 7KH\ ZHUH UHTXLUHG WR VXSSO\ WKHLU RZQ VDOW ILVK SRLVRQ DQG GDUW SRLVRQ IRU EORZJXQV WKH\ KDG E\ WKLV WLPH DGRSWHG WKH EORZJXQ DV ZHOO DV WKH ERZ DQG DUURZ IURP WKHLU IRUPHU /DJXQDV QHLJKERUVf )UHn TXHQW FRQWULEXWLRQV RI RQHDQGDKDOI DUUREDV & NLORJUDPVf RI PDQLRF IORXU ZHUH GHPDQGHG 7KHVH SURGXFWV ZHUH VROG E\ WKH JRYHUQRU DQG WKH SURILWV ZHUH VKDUHG ZLWK WKH SUHIHFWXUH /DUUDEXUH \ &RUUHD f f $IWHU WKH LQWURGXFWLRQ RI UHJXODU VWHDPVKLS WUDYHO LQ WKH XSSHU $PD]RQ UHJLRQ LQ WKH JRYHUQRUV ZHUH LQ

PAGE 200

FKDUJH RI SURYLGLQJ ZRRG IRU WKH ERDWV WR EXUQ 7KH\ VRPHWLPHV SDLG ,QGLDQV SHVRV SHU SRXQGV IRU WKH ZRRG ZKLFK WKH\ UHVROG DW SHVRV 6RPHWLPHV WKH\ SDLG QRWKLQJ /DUUDEXUH t &RUUHD ff 'HVSLWH JRYHUQPHQW SURKLELWLRQV RQ IRUFHG ODERU ,QGLDQV ZHUH FDUULHG DZD\ WR WKH KLJKODQGV WR ZRUN RQ URDGV LQ &KDFKDSR\DV LQ DQG LQ WKH JRYHUQPHQW XVHG IRUFHG ODERU RI &RFDPDV LQ GRFN FRQVWUXFWLRQ LQ ,TXLWRV /DUUDEXUH \ &RUUHD f ff +HUQGRQ LQ VDLG WKH IROORZLQJ GR QRW ZRQGHU DW WKH LQGLIIHUHQFH RI WKH SHRSOH WR DWWHPSW WR EHWWHU WKHLU FRQGLWLRQ 7KH SRZHU RI WKH JRYHUQRU WR WDNH WKHP IURP WKHLU ODERU DQG VHQG WKHP RQ MRXUQH\V RI ZHHNnV GXUDWLRQ ZLWK DQ\ SDVVLQJ PHUFKDQW RU WUDYHOHU ZRXOG KDYH WKLV HIIHFW $W WKLV WLPH WKH\ KDYH IXUQLVKHG FDQRHV DQG URZHUV IRU WKH SULHVW DQG D 6HRU 6DQWD 0DULD ERXQG XS WKH ULYHU DQG IRU WKH JRYHUQRU DQG XV ERXQG GRZQ ZKLFK KDV WDNHQ WKLUW\ HLJKW PHQ RXW RI D SRSXODWLRQ RI QLQHW\ 7KH ZKROH SRSXODWLRQ RI WKH WRZQ DQG QHLJKn ERUKRRG UHFNRQLQJ ZRPHQ DQG FKLOGUHQ LV WKUHH KXQGUHGf +HUQGRQ f 7KH WHPSRUDU\ H[WUDFWRUV DQG WKH PHUFKDQWV XVHG ,QGLDQV IRU KDUYHVWLQJ IRUHVW DQG ULYHU SURGXFWV DQG IRU FDQRHPHQ DQG ERDWPHQ 7KH &RFDPLOOD KRZHYHU QHYHU IRQG RI ILHOG ZRUN GHVWUR\HG WKH ]DU]DSDULOOD SODQWV ZLWK WKH REMHFW RI QRW VHHLQJ WKHPVHOYHV REOLJDWHG WR UHWXUQ WR FROOHFW

PAGE 201

WKHP 0DZ f ,QFUHDVLQJ WUDGH ZLWK WKH PRUH GHYHORSHG ORZHU $PD]RQ EHJDQ WR DWWUDFW ,QGLDQV HVSHFLDOO\ &RFDPD DQG &RFDPLOOD RXW RI WKH FRXQWU\ IRU ORQJ SHULRGV RI WLPH 0DQ\ QHYHU UHWXUQHG 6RPH RI WKH PHUFKDQWV VWD\HG DQG PDUULHG &RFDPLOOD ZRPHQ 7KHLU FKLOGUHQ DFFXO WXUDWHG WR WKH &RFDPLOOD FRPSOHWHO\ DQG VRRQ EHFDPH &RFDn PLOOD /DJXQDV 3DULVK $UFKLYHV (FFOHVLDVWLFDO &HQVXVf 'HPDQGV E\ WKH &KXUFK FRXOG QRW KDYH EHHQ WRR KHDY\ RYHUDOO VLQFH WKHUH ZHUH QHYHU PRUH WKDQ VHYHQ SULHVWV LQ DOO RI WKH ORZODQG 0DLQDV PLVVLRQV GXULQJ WKH HQWLUH WK DQG HDUO\ WK FHQWXULHV ,Q WRZQV VXFK DV /DJXQDV 6DQWD &UX] DQG &KDPLFXURV KRZHYHU WKH GHPDQGV DPRXQWHG WR D FRQVLGHUDEOH QXVLDQFH IRU WKH ,QGLDQV VLQFH WKHUH ZHUH UHVLGHQW SULHVWV LQ WKHVH WRZQV PXFK RI WKH WLPH 'HVSLWH EDQV RQ FKDUJLQJ WKH ,QGLDQV WKH SULHVWV FRQWLQXHG FKDUJLQJ SRXQGV RI ZKLWH ZD[ DERXW GD\V ZRUNf IRU PDUULDJHV D FKLFNHQ RU HJJV IRU EDSWLVP D EDVNHW RI PDQLRF NLORJUDPVf D VWDON RI SODQWDLQV DQG D FKLFNHQ IRU SUHn PDULWDO FRQIHVVLRQ DQG D FKLFNHQ IRU EXULDO )HVWLYDO PD\RUGRPRV XZR IRU HDFK IHVWLYDOf JDYH WZR SRXQGV RI ZD[ DQG WKHLU ILYH DVVLVWDQWV JDYH D SRXQG HDFK EHVLGHV WKH IRRG VXSSOLHG IRU YLOODJH FRQVXPSWLRQ 7KH SULHVW ZDV JLYHQ D VWDON RI SODQWDLQV D EDVNHW RI PDQLRF D FKLFNHQ

PAGE 202

DQG D EDOO RI WKUHDG ZKLFK ZDV DORQJ ZLWK ZD[ DQG WRFX\R FORWK WKH ORFDO FXUUHQF\f (DFK SULHVW KDG WZR ILVFDOHV DW KLV EHFN DQG FDOO DQG WZR VDFULVWDQV DQG D WUHDVXUHU IRU HDFK FKDSHO DOO WR VHUYH KLP +H KDG WZR FRRNV D ER\ ZKR UDQ HUUDQGV FDOOHG D SRQJRf DQG WZR KXQWHUV PLWDYHURVf ZKR VHUYHG D ZHHN DW D WLPH 6HPDQHURV ZHUH DSSRLQWHG IRU D PRQWK DW D WLPH DQG EURXJKW MHUNHG PHDW ZHHNO\ WR WKH SULHVW /DJXQDV 3DULVK $UFKLYHV 3DSHUV RI =DFKDULDV 3HULDf 5DWHV YDU\ DFFRUGLQJ WR UDFLDO DQG FRUUHVSRQGLQJ HFRQRPLF VWDWXV ,Q =DFKDULDV 3HULD WKH YLFDU RI PLVn VLRQV LQ /DJXQDV DGYLVHG RQH RI KLV SULHVWV WR FKDUJH WKH ZKLWHV SHVRV IRU PDUULDJH WKH PL[WRV SHVRV UHDOHV DQG WKH ,QGLDQV SHVRV UHDOHV 2QHKDOI ZDV WR JR IRU WKH FKXUFK DQG RQHKDOI WR WKH SULHVW /DJXQDV 3DULVK $UFKLYH 3DSHUV RI =DFKDULDV 3HQD +HUQGRQ f &RPSHWLWLRQ IRU ,QGLDQ ODERU EHWZHHQ SROLWLFDO DXWKRULWLHV PHUFKDQWV WUDYHOHUV DQG SULHVWV UHVXOWHG LQ PDQ\ RI WKH ODZV DQG GHFUHHV PHQWLRQHG HDUOLHU LQ WKLV FKDSWHU 7KH DXWKRULWLHV XVXDOO\ FRRSHUDWHG ZLWK FRPPHUFLDO LQWHUHVWV VLQFH SURILWV DFFUXHG WR WKHP DV ZHOO DV WR WKH EXVLQHVVPHQ DQG WR VRPH GHJUHH WKH WZR VHFWRUV PHUJHG 7KH FKXUFK KRZHYHU ZDV UHSHDWHGO\ GHQLHG WKH ULJKW WR SDUDVLWL]H WKH ,QGLDQ HFRQRP\ $ OHWWHU IURP DQ ,TXLWRV

PAGE 203

RIILFLDO WR =DFKDULDV 3HD WKH 9LFDU RI 0DLQDV 0LVVLRQV LQ LV ZRUWK TXRWLQJ LQ IXOO RQ WKLV SRLQW ,I WKH VXSHULRU RUGHUV RI WKH SUHIHFWXUH DUH SXEOLVKHG LW LV LQ RUGHU WKDW WKH\ PD\ EH JLYHQ GXH FRPSOLDQFH QRW WR PDNH QRWH RI WKHP )URP WKH PRPHQW WKH VXSUHPH JRYHUQn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f 7KH 0DLQDV SULHVWV IRU WKHLU SDUW SRLQWHG RXW RQ QXPHURXV RFFDVLRQV WKDW WKHLU VDODULHV QHYHU DUULYHG ,Q DQ\ FDVH DV 3HD VDLG LQ 7KH SROLWLFDO DXWKRULW\ ZLVKHV WR LQMHFW LWVHOI LQ PDWWHUV ZKROO\ RXWVLGH WHPSRUDO FRQWURO /DJXQDV 3DULVK $UFKLYHV SDSHUV RI =DFKDULDV 3HQD f +DFLHQGDV $SSHDU RQ WKH /RZHU +XDOODJD $OO RI WKH HFRQRPLF IRUFHV LPSHOOLQJ WKH KLVWRU\ RI WKH WURSLFDO IRUHVW ORZODQGV LQ WKH WK FHQWXU\ IRXQG WKHLU XOWLPDWH H[SUHVVLRQ LQ WKH LQVWLWXWLRQ RI WKH ORZn ODQGV KDFLHQGD ,Q WKH 3URYLQFH RI /RUHWR KDG EHHQ

PAGE 204

FUHDWHG DQG E\ 0R\REDPED ZDV WKH FDSLWDO %\ /RUHWR ZDV PDGH D GHSDUWPHQW DQG /DJXQDV ZDV SODFHG LQ $OWR $PD]RQDV 3URYLQFH ZLWK %DOVDSXHUWD WKH &DSLWDO 6WHDPERDW QDYLJDWLRQ WR
PAGE 205

,W LV GLIILFXOW WR LPDJLQH D PRUH DSSURSULDWH LQVWLWXn WLRQDO UHVSRQVH WKDQ WKH ORZODQGV KDFLHQGD WR WKH ZHDN IOXFWXDWLQJ DQG H[SRUWGHSHQGHQW PDUNHWV RI WKH WK FHQWXU\ ORZODQG WURSLFV 7KH ORZODQGV KDFLHQGD ZDV D KLJKO\ GLYHUVLILHG LQGXVWULDO FRPPHUFLDO H[WUDFWLYH HFRQRPLF LQVWLWXWLRQ ZLWK DQ DJUDULDQ VXEVLVWHQFH EDVH :KLWHPHVWL]RV VHWWOHG QHDU UHVLGHQW QDWLYH SRSXODWLRQV ,Q /DJXQDV WKH ZKLWHV VHW XS D VHSDUDWH YLOODJH D NLORn PHWHU IURP WKH &RFDPLOOD EDUULR DQG FDOOHG LW 3XHEOR 1XHYR 1HZ 7RZQf ,Q &KDPLFXUR DQG 6DQWD &UX] WKH\ OLYHG LQ WKH QDWLYH FRPPXQLWLHV $FKXDO 7LSLVKFD E\ WKH PRVW LPSRUWDQW &RFDPLOOD WRZQ UHVLVWHG HIIRUWV WR GRPLQDWH LW GLUHFWO\ DQG UHPDLQHG VRFLDOO\ LI QRW HFRQRPLFDOO\ LQGHn SHQGHQW 7KH KDFLHQGD SODQWHG ILHOGV IRU EDVLF VXEVLVWHQFH IRRG ,QGLDQV ZRUNHG WKH ILHOGV VRPHWLPHV ZLWKRXW SD\ DQG HYHQ VFKRRO FKLOGUHQ ZHUH IRUFHG WR ZRUN LQ WKH ILHOGV RI WKH SDWURQ /DJXQDV 3DULVK $UFKLYH 3DSHUV RI =DFKDULDV 3HD f ,QGLDQV ZHUH GLVSDWFKHG LQWR WKH LQODQG DUHDV WR JDWKHU &RSDO &RSDLED UHVLQVf ]DU]DSDULOLD DQG HODVWLF JXPV IRU VDOH $W ILUVW WKH &RFDPLOOD ZHUH PDLQO\ XVHG WR SURGXFH ULYHU SURGXFWV VDOW ILVK DQG PDQDWHH RLO IRU H[SRUW 7KH KDFLHQGDV DOO JUHZ VRPH VXJDU FDQH DQG GLVn WLOOHG WKH MXLFH WR SURGXFH DJXDUGLHQWH UDZ FDQH OLTXRUf

PAGE 206

7KH -HVXLWV KDG LQWURGXFHG LW DQG KDG PDGIH LW SDUW RI WKH UHOLJLRXV IHVWLYLWLHV 1RZ LW ZDV XVHG DV D PHDQV RI VRFLDO FRQWURO D FUHDWHG GHSHQGHQF\ ,W ZDV QRW H[SRUWHG IURP WKH ORZHU +XDOODJD /DJXQDV 3DULVK $UFKLYH 3DSHUV RI =DFKDULDV 3HQD f 7KH SDWURQVA ERXJKW JRRGV WR VHOO WR WKH ,QGLDQV ZLWK WKH SURGXFWV RI ,QGLDQ ODERU 7KH ,QGLDQV UHPDLQHG LQ GHEW 7KH KDFLHQGDV DOVR PDGH FRQWUDFWV ZLWK WKH JRYHUQRUV WR VXSSO\ ZRRG WKHQ FRQWUDFWHG LQGHSHQGHQW YLOODJHV WR FXW LW $ IDYRULWH GHYLFH RI WKH WLPH ZDV WR VHOO EURQ]H EHOOV WR YLOODJHV OLNH $FKXDO 7LSLVKFD 7KH -HVXLWV KDG LQWURGXFHG WKHP DQG WKH\ KDG EHFRPH H[WUHPHO\ LPSRUWDQW IRU YLOODJH LGHQWLW\ DQG HYHQ DV SULPH V\PEROV RI HWKQLF LGHQWLW\ (DFK EDUULR LQ /DJXQDV IRU H[DPSOH KDG LWV EHOOV DQG HDFK EHOO KDG D NQRZQ KLVWRU\ 7KXV LW ZDV WKDW WKH IROORZLQJ GRFXPHQW ZDV PDGH E\ =DFKDULDV 3HQD LQ ,Q WKH YLOODJH RI $FKXDO 7LSLVKFD RQ WKH WK GD\ RI 'HFHPEHU EHIRUH WKH XQGHUn VLJQHG -XVWLFH RI WKH 3HDFH DQG WKH ZLWQHVV WR WKH DFWLRQ 'U =DFKDULDV 3HQD -XDQ 5HQJLIR fIURP D KDFLHQGD DW 6WD &UX]Bf DQG 3HGUR 2UWL] fIURP D KDFLHQGD DW &KDPLFXURVB ERWK SURSRQHQWV IRU WKH VDOH RI WZR EHOOV WR WKH FLWHG YLOODJH DSSHDUHG WKH MXVWLFHV LQ WKH QDPH RI WKH UHVLGHQWV DQG WKH\ ZHUH WROG WKDW -XDQ 5HQJLIR RIIHUHG WZR EHOOV ZHLJKLQJ SRXQGV IRU WKH YDOXH RI UDMDV RI ZRRG SODFHG LQ WKH ILHOGV RI 6DQWD 0DULD fKLV KDFLHQGDB E\ HDFK RQH RI WKH UHVLGHQWV

PAGE 207

ZKLFK DVFHQGV WR $QG 3HGUR 2UWL] RIIHUV WZR EHOOV ZHLJKLQJ SRXQGV IRU WKH YDOXH RI UDMDV RI ZRRG ZKLFK HDFK RQH RI WKH VDPH UHVLGHQWV PXVW SODFH LQ WKH ILHOGV RI 6DQWD /XFLD fKLV KDFLHQGDB HWF /DJXQDV 3DULVK $UFKLYHV 3DSHUV RI =DFKDULDV 3HD WUDQVODWLRQ PLQHf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ff ,I WKH UXEEHU FROOHFWRU KDG WR EX\ LPSRUWHG IRRG ZLWK KLV ZDJHV KH ZRXOG VWDUYH WR GHDWK 0DQ\ GLG SUHFLVHO\ WKDW ZKHQ WKH H[n WUDFWLYH HFRQRP\ UHDFKHG LWV LQVDQH IHYHU SLWFK GXULQJ WKH

PAGE 208

7DEOH ([SRUWV RI 6RPH /RZODQG 3URGXFWV IURP /RUHWR
PAGE 209

KHLJKW RI WKH UXEEHU ERRP IURP WR :LWK SUHYDLOn LQJ ZDJHV HYHQ LI WKH\ ZHUH SDLG WKH ,QGLDQV KDG WR GHSHQG RQ IRRG DQG FORWKLQJ VXSSOHPHQWV IURP WKH SDWURQV DW SULFHV GHWHUPLQHG E\ WKH SDWURQV 7KH DOWHUQDWLYH RSWLRQ WR UHMHFW ZDJH ZRUN ZDV QRW SHUPLWWHG WKHP 7KH FRPPHUFLDO WUDGH ZKLFK WKH KDFLHQGD SDWURQ FDUULHG ZLWK KLV ,QGLDQV LQ WHUPV RI ZDJHV DQG SULFHV LV LQWHUHVWn LQJ 7KH &RFDPLOOD ZRUNHG DERXW WKUHHDQGDKDOI GD\V WR SURGXFH D SRXQG RI ZKLWH EHHn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f (DFK KDFLHQGD SDWURQ ZDV WKH H[FOXVLYH VRXUFH RI FRPn PHUFLDO JRRGV WR KLV ,QGLDQV 7KHUH ZHUH DJUHHPHQWV

PAGE 210

EHWZHHQ WKHP WR WKH HIIHFW WKDW WKH\ ZRXOG QRW VHOO WR DQn RWKHUnV ,QGLDQV (YHQ WRGD\ WKH IRON GHILQLWLRQ RI VODYHU\ LQ WKH UHJLRQ LV WKH LQDELOLW\ WR EX\ IURP ZKRP RQH FKRRVHV ,Q WKH ORZHU +XDOODJD 5LYHU YDOOH\ WKH ZKLWHPHVWL]R VRFLHW\ ZDV DQG LV WLJKWO\ NQLW E\ NLQVKLS PDNLQJ HFRQRPLF FROOXVLRQ HDV\ &KXUFK UHFRUGV RI WKH WLPH VKRZ PDUULDJH DIWHU PDUULDJH LQ WKH ZKLWHPHVWL]R VHFWRU DQQXOOHG EHFDXVH WKH NLQVKLS UHODWLRQVKLS EHWZHHQ VSRXVHV ZDV WRR FORVH DFFRUGLQJ WR &DWKROLF FDQRQLF ODZ /DJXQDV 3DULVK $UFKLYHVf 7KH 5XEEHU %RRP 7KH UXEEHU ERRP SXW D VWUDLQ RQ WKH FR]\ QDWXUH RI WKH UHODWLRQVKLSV DPRQJ PHPEHUV RI WKH ZKLWHPHVWL]R VHFWRU &RPSHWLWLRQ IRU ,QGLDQ ZRUNHUV EHFDPH PXFK VKDUSHU DQG URYLQJ JDQJV RI WKXJV FDUULHG ,QGLDQV DZD\ E\ IRUFH LQ PDQ\ DUHDV 7KH DEXVHV RI WKLV SHULRG RQ WKH 3XWXPD\R 5LYHU DUH ZHOONQRZQ &I 6LQJOHWRQ*DWHV f DQG LW VHHPV XQQHFHVVDU\ WR FRQFHQWUDWH RQ WKHP KHUH 2Q WKH ORZHU +XDOODJD 5LYHU WKH UXEEHU ERRP PDUNHG WKH HIIHFWLYH HQG RI WKH &KDPLFXUR DQG WKH $JXDQR $ *HUPDQ LPPLJUDQW QDPHG %HOLVDULR 3DWRZ ZDV DEOH WR GRPLQDWH WKH ROG PLVVLRQ RI &KDPLFXUR DQG KH LQVLVWHG WKDW WKH UHPDLQLQJ &KDPLFXUR SRS LQ f PRYH WR WKH +XDOODJD ZKHUH KH KDG IRXQGHG

PAGE 211

D KDFLHQGD LQ DERXW +H GHFLGHG WR WDNH WKH &KDPLFXUR PHQ WR ZRUN IDU DZD\ RQ WKH
PAGE 212

&UX]
PAGE 213

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f DQG WKH DFW RI IRXQGDWLRQ RI WKH YLOODJH ZKLFK ZDV JXDUGHG WKHUH 7KLV LV KRZ 7LSLVKFD ORVW WLWOH WR WKH ODQG 9HUEDWLP WUDQVFULSWLRQ RI WDSH LQ ILHOG QRWHV WUDQVODWLRQ PLQHf 7KH UHQHZHG FOLPDWH RI YLROHQFH LQ WKLV SHULRG HYHQ H[WHQGHG WR WKH FKXUFK ,Q $EUDKDP %HUQX\ WKH /DJXQDV SULHVW EHDW D &RFDPLOOD PDQ WR GHDWK LQ WKH 3DULVK +RXVH ODVKLQJ KLP WR D SRVW WR GR VR 7KH DFW ZDV FRPPLWWHG EHFDXVH WKH PDQ KDG WZR ZRPHQ DQG %HUQX\ ZDQWHG KLP WR PDUU\ WKH RQH ZLWK D FKLOG $W WKH VDPH WLPH KH PXWLODWHG RQH RI WKH ZRPHQ +H WKHQ UHIXVHG WR EXU\ WKH PDQ LQ WKH FKXUFKn \DUG DQG WRRN WKH GHDG PDQnV VRQ LQWR WKH FRQYHQW WR SUHn YHQW KLP IURP WHVWLI\LQJ WKUHDWHQLQJ KLP ZLWK WKH VDPH IDWH DV KLV IDWKHU $UFKLYHV RI WKH
PAGE 214

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f $ VXEVHTXHQW WXJRIZDU ZKLFK WKH ZRPHQ DOZD\V OHVW VHHPHG WR UHIOHFW WKH UHODWLYH SROLWLFDO DQG HFRQRPLF SRZHU RI WKH VH[HV 7KH ULWXDO EDWK RI DOO SDUWLFLSDQWV DIWHUZDUG V\PEROLFDOO\ MRLQHG WKH VH[HV &RFDn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

PAGE 215

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f FROODSVHG WKHUH ZDV VWLOO VRPH PRQH\ WR EH PDGH LQ RWKHU JXPV DQG UHVLQV 0DQ\ RI WKH ROGHU SHRSOH WRGD\ VSHQW WLPH LQ WKHLU \RXWK JDWKHULQJ MHEH KHYHD EUDVLOHQVLVf LQODQG IURP 6DQWD &UX] EDODWD PDQLNDUD EDODWD PDQLNDUD ELGHQWDWD PLPXVRSV ELGHQWDWDf LQ -HEHURV DQG /HFKH &DVSL JDODFWRQGHQ WURQ XQWLOLVLPXQ RU FRXPD PDFURFDUSDf LQODQG IURP 7LSLVKFD 7KH KDFLHQGDV VFDOHG GRZQ WKHLU H[WUDFWLYH DFWLYLWLHV DQG EHJDQ WR UDLVH FDVK FURSV HVSHFLDOO\ ULFH DQG EHDQV 6XJDU FDQH IRU OLTXRU FRQWLQXHG WR EH UDLVHG &DWWOH UDLVLQJ ZDV LQFUHDVLQJO\ LPSRUWDQW LQ VRPH FRPPXQLWLHV $OWKRXJK PDQ\ RI WKH &RFDPLOOD KDG EHFRPH ILHOG SHRQV WKHLU PRVW LPSRUWDQW HFRQRPLF IXQFWLRQ LQ WKH ODUJHU VRFLHW\ ZDV VWLOO DV VXSSOLHUV RI ILVK DQG RWKHU ULYHU DQLPDOV WR WKH VZHOOLQJ ZKLWHPHVWL]R SRSXODWLRQV LQ /DJXQDV 6DQWD &UX] DQG

PAGE 216


PAGE 217

WKHLU H[SXOVLRQ &XVWRPV VXFK DV WKH FXOW RI WKH 0DLFXFRV PDVNHG GDQFHUV ZKR ZHUH UHSUHVHQWDWLRQV RI GHYLOV RU GHPRQV WKLQO\ YHLOHG YHUVLRQV RI FRORQLDO 6SDQLVK VROGLHUV RIIHQGHG KLP 6RPH RI WKH PDLFXFRV ZHUH DGRUQHG ZLWK HQRUPRXV UHG SHQLVHV JUDIWHG RQWR WKH FRVWXPH +H IRXQG WKH SHQLWHQWV JUXHVRPH +H VRRQ ZHQW EDFN WR 6SDLQ /DJXQDV 3DULVK $UFKLYH &RUHUD $SSHQGL[ f ,Q /XFDV (VSLQRVD ZURWH WKH RQO\ PRQRJUDSK HYHU SXEOLVKHG RQ WKH &RFDPLOOD 'HVSLWH \HDUV RI FRQWDFW WKH\ KDG PDQDJHG WR SUHVHUYH DQ LQFUHGLEOH DPRXQW RI WKHLU FXOWXUDO SDUWLFXODULW\ 7KH &RFDPD ODQJXDJH ZDV VWLOO XVHG E\ HYHU\RQH 6KDPDQLVP ZDV VWURQJ 7KH &XUDFD ZDV VWLOO WKH PRVW UHVSHFWHG DXWKRULW\ 7KH EORZJXQ DQG ERZ DQG DUURZ ZHUH VWLOO LQ XVH 0RVW RI WKHLU ROG FUDIWV ZHUH VWLOO EHLQJ SUDFWLFHG DOWKRXJK JUDSKLF GHVLJQV KDG XQGHUJRQH DQ HYROXn WLRQ WR (XURSHDQ VW\OHV 7KH GLYLVLRQ RI ODERU LQ VXEn VLVWHQFH DFWLYLWLHV DPRQJ WKH IUHH &RFDPLOOD KDG QRW FKDQJHG VLQFH -HVXLW WLPHV )DPLO\ OLIH EDVHG RQ WKH VXEVLVWHQFH SDWWHUQV KDG QRW FKDQJHG $FKXDO 7LSLVKFD $UDKXDQWH DQG /DJXQDVn ROG &RFDPLOOD EDUULR ZHUH WKH PDLQ FRQFHQWUDWLRQV RI &RFDPLOOD IDPLOLHV DOWKRXJK &RFDPLOOD PHQ FRXOG EH IRXQG ZRUNLQJ LQ PDQ\ RI WKH WRZQV DORQJ WKH 0DUDQRQ 5LYHU (VSLQRVD f

PAGE 218

7KH &RFDPD ZHUH PRUH GLVSHUVHG 6RPH KDG EHHQ FDUULHG WR WKH PRXWK RI WKH 1DQD\ 5LYHU GXULQJ WKH UXEEHU ERRP %RWK 1DXWD DQG 3DULQDUL VHH S f KDG EHHQ WDNHQ RYHU E\ ZKLWH SDWURQV VRRQ DIWHU WKHLU IRXQGLQJ DQG WKH PHQ VSHQW PXFK RI WKHLU WLPH DZD\ 7KH &RFDPD ZHUH ZLGHO\ VFDWWHUHG RYHU WKH PDMRU ULYHU YDOOH\V LQ VPDOO FRORQLHV ZKHUHYHU WKHUH ZDV ZRUN 7KH\ DSSHDUHG WR KDYH EHHQ HYHQ PRUH GRPLQDWHG DQG IUDJPHQWHG WKDQ WKH &RFDPLOOD ZHUH E\ WKHLU WK FHQWXU\ SDWURQV (VSLQRVD f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
PAGE 219

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f GXH WR WKH VWURQJ LPPLJUDWLRQ RI JHQWH EODQFD ZKR FDPH IRU WKH EDUEDVFR 7KH\ WRRN RYHU WKH FRPPHUFH FRPSOHWHO\ H[FOXGn LQJ WKH &RFDPLOOD /DJXQDV 3DULVK $UFKLYH 3DSHUV RI -RV 0DQXHO ,ULRQGR /DJXQDV 3DULVK &HQVXV f $UDKXDQWH ZDV D KDFLHQGD 7LSLVKFD ZDV QRW RQO\ D IHUWLOH VRXUFH RI SHRQV EXW LW KDG D VFKRRO DV ZHOO 7KH SDWURQV PRYHG LQ DQG FRPSHWHG ZLWK WKH 6DQWD &UX] SDWURQV IRU ,QGLDQV %DUEDVFR ILHOGV RI XS WR KHFWDUHV LQ VL]H ZHUH FOHDUHG IURP WKH IRUHVWV 7KH ODERU LQYROYHG LQ WKHLU FOHDULQJ DQG PDLQWHQDQFH ZDV LQFUHGLEOH 7KH SDWURQV

PAGE 220

GLYLGHG WKH ZRUN IRUFH E\ DJUHHPHQWV DV LQ WKH UXEEHU ERRP $V LQ WKH UXEEHU ERRP IRUFHG ZRUN EHFDPH WKH PRGH 6DQWD &UX] ZDV WKH UHVLGHQFH RI PDQ\ EDUEDVFR SDWURQV %RDWV ZLWK *XDUGLD FLYLO WKH QDWLRQDO SROLFHf DERDUG ZRXOG SXOO LQWR 7LSLVKFD DQG ORDG XS DOO RI WKH PHQ D JLYHQ SDWURQ ZRXOG LGHQWLI\ DV KLV 7KH ZRPHQ DQG FKLOGUHQ ZHUH OHIW WR IHQG IRU WKHPVHOYHV 2Q ZDJHV RI WKUHH WR WHQ VROHV SHU GD\ WKH PHQ FRXOG QRW EX\ WKHP WKH IRRG WKH\ QHHGHG 7KHLU SODQWDLQ DQG PDQLRF ILHOGV JUHZ UDQN ZLWK ZHHGV DQG JUDVV 7KH PRVW GDPDJLQJ EORZ WR $FKXDO 7LSLVKFD WKH ODVW LQGHSHQGHQW &RFDPLOOD FRPPXQLW\ LQ 3HUX ZDV WKDW WKH FRPn PXQLW\ DXWKRULW\ VWUXFWXUH ZDV FRPSOHWHO\ XQGHUPLQHG E\ WKH ZKLWHPHVWL]R WDNHRYHU 6LQFH EHIRUH LQGHSHQGHQFH WKH FRPPXQLW\ KDG KDG D &RFDPLOOD FXUDFD ZLWK DOFDOGHV FDSLWDQHV DQG YDUDYRV XQGHU KLP +H UHVSRQGHG WR WKH ZKLWHPHVWL]R OLHXWHQDQW JRYHUQRU EXW WKH HIIHFWLYH VRFLDO FRQWURO RI WKH YLOODJH ZDV LQ KLV KDQGV +H UHVROYHG GLVSXWHV DGPLQLVWHUHG GLVFLSOLQH DQG NHSW FRPPXQDO ZRUN SURMHFWV RSHUDWLQJ 7KH FXUDFD ZDV DOZD\V D PDWXUH PDQ DQG WKH SRVLWLRQ ODVWHG XQWLO GHDWK :LWK WKH LQIORZ RI ZKLWHPHVWL]R SDWURQV WKH SRVLWLRQ RI WKH FXUDFD ZDV DEROLVKHG )RU D WLPH WKH SRVLWLRQ ZDV FDOOHG FDSLWDQ GHO SXHEOR 7KH ZRUN RI UXQQLQJ WKH GD\ WR GD\

PAGE 221

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

PAGE 222

JHQHUDWLRQ IRUELGGHQ WR VSHDN WKHLU QDWLYH ODQJXDJH LQ VFKRRO DQG WKH\ ZHUH UHPLQGHG FRQVWDQWO\ LQ VXEWOH DQG QRW VRVXEWOH ZD\V WKDW WKH\ ZHUH EDUHO\ FLYLOL]HG EUXWLVK FKRORV ILW RQO\ WR EH SHRQV 7KH UDSLG LQIOX[ RI SRSXODWLRQ WR 7LSLVKFD PDGH WKH YLOODJH VZHOO WR RYHU SHRSOH E\ )LVKLQJ EHJDQ WR GHWHULRUDWH VRRQ DIWHU DV PRUH DQG PRUH SHRSOH H[n SORLWHG WKH ODNH )RUWXQDWHO\ IRU WKH &RFDPLOOD LQ WKH HDUO\ V WKH SULFH IRU EDUEDVFR IHOO DOPRVW RYHUQLJKW DQG WKH SDWURQV EHJDQ WR GHVHUW WKH YLOODJH IRU ODUJHU WRZQV ZKHUH WKHUH ZHUH HFRQRPLF QLFKHV ZKLFK GLG QRW LQYROYH OLYLQJ OLNH UXVWLFV %\ RQO\ RQH SDWURQ ZDV OHIW DQG WKH YLOODJH ZHQW WKURXJK DQ LQFUHGLEO\ WRUWXRXV SURFHVV WR JHW KLP DQG KLV FDWWOH UHPRYHG IURP WKH YLOODJH %\ WKLV WLPH WKHUH ZHUH PDQ\ &RFDPLOOD ZKR ZHUH OLWHUDWH DQG WKH\ WRRN DQ DFWLYH KDQG LQ IRPHQWLQJ KLV OHJDO UHPRYDO (YHQWXDOO\ WKH\ SUHYDLOHG DQG WKH FDWWOH ZHUH UHPRYHG 7KH FRPPXQLW\ FRQWLQXHG WR GZLQGOH LQ VL]H XQWLO LW UHDFKHG WKH VL]H RI MXVW RYHU SHRSOH VRPHWLPH LQ 7KH ILVKLQJ LPSURYHG 6HH 7DEOH f :LWK WKH EDUEDVFR SULFH FROODSVH DQRWKHU HFRQRPLF GHSUHVVLRQ HQVXHG 7KH KDFLHQGDV DOO DORQJ WKH ORZHU +XDOODJD KDG EHHQ ZLWKHULQJ VLQFH WKH UXEEHU GHSUHVVLRQ

PAGE 223

7DEOH 7LSLVKFD 3RSXODWLRQV DV 6KRZQ LQ 9DULRXV &HQVXVHV
PAGE 224

WKHLU RZQHUV OHIW ZLWK RQO\ DJULFXOWXUH DQG FDWWOH WR VXSn SRUW WKHP &RWWRQ DQG MHEH KDG QR YDOXH E\ PLGFHQWXU\ :LWK WKH FROODSVH RI EDUEDVFR SULFHV SULFHV IRU ULFH EHDQV DQG FRUQ IHOO WR ILYH RU VL[ VROHV SHU DUURED NLORJUDPVf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n TXHQW H[SXOVLRQV FRQIOLFWV DQG UHYROXWLRQV RI WKHLU KLVn WRULFDO SDVW WKH JHQHUDO HYROXWLRQ RI WKHLU UHODWLRQVKLS WR WKH GRPLQDQW VRFLHW\ LV FOHDU 7KH\ ZHUH ILUVW GRPLQDWHG DV D FRPSOHWH WULEH E\ WKH &KXUFK DQG 6WDWH

PAGE 225

WRJHWKHU :KHQ WKH -HVXLWV ZHUH H[SHOOHG WKH GRPLQDWLRQ EHFDPH ILQHUJUDLQHG DQG LQGLYLGXDO FRPPXQLWLHV ZHUH GRPLQDWHG E\ WKH 6WDWH &KXUFK DQG ULVLQJ FRPPHUFLDO LQn WHUHVWV :LWK LQGHSHQGHQFH DQG WKH ULVH RI WKH KDFLHQGD WKH\ ZHUH IXUWKHU IUDJPHQWHG DQG GRPLQDWHG LQ QXFOHL RI SDWURQDJH ZKLFK VHSDUDWHG WKHP LQWR JURXSV RI OHVV WKDQ FRP PXQLWY VL]H 7KH &KXUFK ZDV JUDGXDOO\ H[FOXGHG :LWK WKH FROODSVH RI WKH KDFLHQGD DQG SDWURQ V\VWHP D SURFHVV VWLOO RQJRLQJf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n GRQPHQW DQG WKH IDLOXUH RI WKH PDOH ZRUNHUV WR SURYLGH IRU IDPLOLHV OHIW DORQH 0XFK RI WKH FDVK LQFRPH ZDV VSHQW LQ WKH FRQVXPSWLRQ RI DOFRKRO DQG RWKHU OX[XULHV 7R VXPPDUL]H WKH PDMRU FKDQJHV LQ WKH VRFLDO VWUDWLIL FDWLRQ RI WKH +XDOODJD UHJLRQ GXULQJ WKH SRVWLQGHSHQGHQFH

PAGE 226

SHULRG LQFOXGH WKH FUHDWLRQ RI D KLJKO\FDSLWDOL]HG EDQNLQJ DQG FRPPHUFLDO HOLWH E\ WKH UXEEHU ERRP 7KLV VHFWRU ZDV VXVWDLQHG E\ VXEVHTXHQW GHYHORSPHQW $ VHFRQG FKDQJH ZDV WKH FUHDWLRQ IRU D SHULRG RI DERXW \HDUV RI D UXUDO KDFLHQGD HOLWH ZKLFK JUDGXDOO\ GLYHUVLILHG WR FUHDWH WKH PRWRUL]HG ERDW WUDGLQJ VHFWRU DQG VRPH RI WKH ZHDOWKLHU EX\HUV DQG VHOOHUV RI DJULFXOWXUDO DQG LQGXVWULDO JRRGV LQ WKH SRUW WRZQV WRGD\ WKH ULFKHU UHPDWLVWDVf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n PLOOD DQG PDQ\ RWKHU ,QGLDQ JURXSV DV WULEHV RU HYHQ DV XQLILHG HWKQLF JURXSV VLQFH LQGLYLGXDO SDWURQGRPLQDWHG FRPPXQLWLHV DFFXOWXUDWHG DW YDU\LQJ SDFHV GHWHUPLQHG E\ WKH GHJUHH RI GLUHFW GRPLQDWLRQ DQG LQVHUWLRQ LQWR WKH UHJLRQDO FODVV V\VWHP $Q LPSRUWDQW YDULDEOH ZDV FHUWDLQO\ WKH

PAGE 227

GHJUHH WR ZKLFK LQGLYLGXDO QDWLYH FRPPXQLWLHV ZHUH SK\VLn FDOO\ RFFXSLHG E\ WKH SDWURQV 7KH /DJXQDV &RFDPLOOD EDUULR IRU H[DPSOH ZDV GRPLQDWHG EXW QRW RFFXSLHG DQG KDG D PRUH DFWLYH ULWXDO F\FOH WKDQ WKH RXWO\LQJ FRPPXQLWLHV VLQFH /DJXQDV KDG UHVLGHQW SULHVWV ,W KDV SUHVHUYHG LWV HWKQLFLW\ LQ WHUPV RI ODQJXDJH FXVWRP DQG VHOI DVFULSWLRQ PRUH WKDQ DQ\ RWKHU &RFDPLOOD FRPPXQLW\ 7KLV LV WUXH HYHQ WKRXJK E\ PRVW MXGJHPHQWV LW PLJKW EH VDLG WR EH PRUH LQ FRQWDFW ZLWK ZKLWHPHVWL]R VHFWRUV WKDQ RWKHU PRUH UXUDO FRPPXQLWLHV $IWHU $FKXDO 7LSLVKFD ZDV SK\VLFDOO\ RFFXSLHG WKH SDFH RI FXOWXUH FKDQJH DFFHOHUDWHG QRWDEO\ XQWLO WKH SDWURQV OHIW 7KH VLWXDWLRQ RI WKH &RFDPLOOD WRGD\ LV RQH RI D VHULHV RI FRPPXQLWLHV ZKLFK UDQJH IURP XUEDQ VDWHOOLWHV LQ ZKLFK WKH &RFDPLOOD JHQHUDOO\ ILOO WKH QLFKH RI VXSSOLHUV RI ILVK DQG RWKHU ULYHU SURGXFWV WR ZKLWHPHVWL]R XUEDQ GZHOOHUV WR UXUDO FRPPXQLWLHV ZKLFK SURYLGH WKHLU RZQ VXEVLVWHQFH DQG DUH KHDYLO\ LQYROYHG LQ PDUNHWV DQG LQ GHEW WR WKH EDQNV 7KH /DJXQDV EDUULR RFFXSLHV D XQLTXH SRVLWLRQ DQG KDV HFRQRPLF FKDUDFWHULVWLFV RI ERWK UXUDO FRPPXQLWLHV DQG XUEDQ VDWHOOLWHV 7KH VDWHOOLWHV RWKHU WKDQ WKH /DJXQDV EDUULR FDQ QR ORQJHU EH FRQVLGHUHG QDWLYH FRPPXQLWLHV VLQFH WKH UHVLGHQWV FRPH IURP PDQ\ GLIIHUHQW SODFHV DQG WKH\ DUH

PAGE 228

QRW VWURQJO\ WLHG E\ NLQVKLS 1HYHUWKHOHVV WKHVH FRPPXQLWLHV E\ YLUWXH RI WKH HQGRJDP\ FUHDWHG E\ HWKQLF ERXQGDULHV PD\ LQ WKH IXWXUH DJDLQ EHFRPH QDWLYH FRPPXQLWLHV 7KH PDMRU UXUDO &RFDPLOOD FRPPXQLWLHV WRGD\ DV LQ WKH SDVW DUH WKH /DJXQDV EDUULR FHQWUDO $UDKXDQWH DQG $FKXDO 7LSLVKFD $PRQJ WKH WKUHH WKH\ DFFRXQW IRU RYHU RI WKH &RFDPLOOD 7KH QXPEHUV RI &RFDPLOOD LQ WKH VDWHOOLWH SRUW EDUULRV RI /DJXQDV
PAGE 229

WKH XSSHU UHDFKHV RI WKH 3XLQDKXD &DQDO 6WRFNV f DQG 1DXWD 3DULQDUL &RQFRUGLD DQG DOO SRLQWV GRZQVWUHDP WR WKH 1DSR KDYH KLJK SHUFHQWDJHV RI &RFDPD VXUQDPHV

PAGE 230

1 RWH ‘n‘7KH KDFLHQGD RZQHUV EHFDPH SDWURQV RI PDQ\ RI WKH &RFDPLOOD DW WKLV WLPH 7KH UHODWLRQVKLS LV NQRZQ DV WKH SDWURQFOLHQW UHODWLRQ DQG LV GLVWLQJXLVKHG E\ DV\PPHWULFDO GRPLQDQWVXERUGLQDWH VRFLDO UHODWLRQVKLS 0DQ\ RI WKH &RFDn PLOOD ZHUH OLQNHG WR WKHLU SDWURQV E\ WLHV RI ULWXDO FRn SDUHQWKRRG FRPSDGUD]JRf ,GHDOO\ WKH SDWURQ LV REOLJDWHG E\ WKH XQZULWWHQ WHUPV RI WKH UHODWLRQVKLS WR SURYLGH FUHGLW WR WKH FOLHQW WR EX\ WKH SURGXFWV RU HPSOR\ WKH ODERU RI WKH FOLHQW DQG WR SURWHFW KLV FOLHQWV IURP RWKHU SDWURQV 7KH FOLHQW KDV WKH REOLJDWLRQ WR ZRUN RII WKH GHEW DQG WR EX\ IURP WKH SDWURQ 7KH FOLHQW PXVW SD\ SDUWLFXODU DWWHQn WLRQ WR SODFDWLQJ WKH SDWURQ DQG DYRLGLQJ WKH DSSHDUDQFH RI EHLQJ XSSLW\

PAGE 231

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f $V WKH SUHFHGLQJ FKDSWHU GHPRQVWUDWHV LW LV QR ORQJHU SRVVLEOH WR VSHDN RI D &RFDPLOOD HFRQRP\ VLQFH KLVWRULFDO GRPLQDWLRQ DQG IUDJPHQWDWLRQ KDA PHDQW WKDW DV SDUW RI WKH 3HUXYLDQ FODVV VWUXFWXUH HDFK &RFDPLOOD QDWLYH FRPPXQLW\ KDV VRPHZKDW GLVWLQFWLYH UHODWLRQV ZLWK WKH QDWLRQDO HFRQRPLF

PAGE 232

V\VWHP 7KH VLWXDWLRQ RI WKH FRPPXQLW\ RI $FKXDO 7LSLVKFD PD\ EH WDNHQ WR EH UHSUHVHQWDWLYH RI PRVW UXUDO &RFDPLOOD DQG &RFDPD FRPPXQLWLHV DQG LV SUREDEO\ W\SLFDO DOWKRXJK QR GDWD SUHVHQWO\ H[LVWV WR VXSSRUW VXFK D VWDWHPHQWf RI PRVW LQGHSHQGHQW UXUDO QDWLYH HQFODYHV RI XQDVVLPLODWHG ,QGLDQV 7KURXJKRXW WKLV FKDSWHU LW LV LPSRUWDQW WR NHHS LQ PLQG WKDW WKH 7LSLVKTXLQRV DQG WKH ZKLWHPHVWL]R LPPLn JUDQW VHWWOHUV IRUP WZR VWUDWD RI WKH UXUDO FODVV VWUXFWXUH ZLWK WKH 7LSLVKTXLQR RQ WKH ERWWRP $V WKH GHVFULSWLRQ RI WKH 7LSLVKFD VXEVWDQWLYH HFRQRP\ GHYHORSV WKH LQWHUHVWV RI IRFXVLQJ RQ SUREOHPV ZLOO OHDG QDWXUDOO\ WR GLVFXVVLRQ RI WKH LQWHUIDFH EHWZHHQ QDWLRQDO DQG ORFDO HFRQRPLHV 6SHFLILFDOO\ ZLWK UHJDUG WR WKH VXEn VLVWHQFH HFRQRP\ WKH PDMRU SUREOHPV OLH ZLWK ZKLWHPHVWL]R FRORQL]DWLRQ WKH PLQLVWU\ RI ILVKLQJ DQG WKH SHFXOLDU SROLFLHV RI WKH DJUDULDQ EDQN ,Q FDVKFURSSLQJ DQG PDUNHWn LQJ WKH PDMRU SUREOHPV OLH ZLWK GLVFULPLQDWLRQ WKH DJUDULDQ EDQN DQG ZKLWHPHVWL]R GRPLQDWLRQ RI WUDQVSRUWDWLRQ ,Q SXUFKDVH GLVWULEXWLRQ DQG FRQVXPSWLRQ RI SURGXFWV WKH PDMRU SUREOHP LV LQIODWHG SULFHV D FRQVHTXHQFH RI ZKLWH PHVWL]R GRPLQDWLRQ RI WKH PDUNHWLQJ LQIUDVWUXFWXUHV DV ZHOO DV D IXQFWLRQ RI GLVWDQFH DQG WLPH

PAGE 233

$JULFXOWXUH DQG /DQG 8VH $FKXDO 7LSLVKFD LV D FRPPXQLW\ RI MXVW RYHU SHRSOH VHH $SSHQGL[ ,, IRU SRSXODWLRQ FKDUDFWHULVWLFVf RQ WKH VKRUHV RI DQ R[ERZ ODNH LQ WKH IORRGSODLQ RI WKH +XDOODJD 5LYHU 7KH FRPPXQLW\ OLHV RQ WKH HGJH RI WKH IORRGSODLQ WKH ODQG LQODQG LV PRVWO\ DOWXUD DQG QRW IORRGHG E\ WKH DQQXDO ULVH DQG IDOO RI WKH ULYHU 0DS VKRZHG WKH UHVRXUFH DUHD RI WKH FRPPXQLW\ 7KH VHFWLRQ VKRZQ DV DJULn FXOWXUDO ODQG KDV DERXW b XVDELOLW\ WKH UHPDLQGHU EHLQJ SRRUO\ GUDLQHG 7LSLVKTXLQRV IRUPHUO\ XVHG WKH IORRGSODLQ IRU UDLVLQJ SODQWDLQV DQG EDQDQDV DQG WKH XSODQG SODLQ IRU PDQLRF DQG ILVK SRLVRQ ([FHVVLYHO\ KLJK IORRGLQJ LQ UHFHQW \HDUV GXH WR PDVVLYH GHVWUXFWLRQ RI WKH IRUHVWV DORQJ WKH FHQWUDO +XDOODJD 5LYHU DQG FRQVHTXHQW LQFUHDVHG UXQRII KDYH FKDQJHG WKLV SDWWHUQ $QRWKHU IDFWRU LQ WKH FKDQJH LV WKDW WKH IORRGSODLQ VRLOV DUH WKH EHVW IRU WKHLU PDMRU FDVK FURS MXWH PDOYD XUHQDf DQG WKH FURS PXVW EH UDLVHG QHDU ZDWHU IRU LWV SURFHVVLQJ 7KXV WKH ERWWRPODQGV DUH QRZ PDLQO\ GHYRWHG WR WKLV FURS ZLWK IDUUHDFKLQJ FRQVHTXHQFHV 7KH FKDQJH IURP IRRG WR ILEUH FURSV LQ WKH DUDEOH ERWWRPODQGV RI WKH IORRGSODLQ LV VWLOO LQ SURFHVV DV 7DEOH VKRZV 7KH WRWDO QXPEHU RI KHFWDUHV GHYRWHG WR MXWH LQFUHDVHG E\

PAGE 234

UR

PAGE 235

7DEOH /DQG 8VH LQ $FKXDO 7LSLVKFD LQ DQG ,Q +HFWDUHV ,QODQG LQ ,QODQG LQ )DOORZ 9LUJLQ %DQNV RI )ORRGSODLQ )RUHVW )RUHVW +XDOODTD 7RWDO -XWH f§ b Yef 0DQLRF f§ -? Lf§ b X 4f 3ODQWDLQ f§ f§ &' b &RUQ f§ f§ f§ ` b R X X 5LFH b 3UHSDUDWLRQ f§ b 7RWDOV b b b b b

PAGE 236

7DEOH &RQWLQXHGf ,Q +HFWDUHV )ORRGSODLQ ,QODQG LQ )DOORZ )RUHVW ,QODQG LQ 9LUJLQ )RUHVW %DQNV RI +XDOODTD 7RWDO -XWH f§ f§ b 0DQLRF f§ f§ b f R c WR D 3ODQWDLQ b &RUQ b X X 5LFH f§ f§ f§ 3UHSDUDWLRQ f§ f§ f§ f§ 7RWDOV b b b b b

PAGE 237

b EHWZHHQ DQG ZKLOH WKH WRWDO QXPEHU RI KHFWDUHV SODQWHG LQ DOO FURSV LQFUHDVHG RQO\ bb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

PAGE 238

WRWDO WLPH EXGJHW +2856 )LJXUH 6XEVLVWHQFH $FWLYLWLHV RI $GXOW 0DOHV RQ D 'DLO\ %DVLV

PAGE 239

7DEOH $YHUDJH 7LPH 3HU 'D\ 6SHQW RQ 9DULRXV 6XEVLVWHQFH $FWLYLWLHVA E\ $JH DQG 6H[ 0DOHV )HPDOHV 3ODQWDLQV 0DQLRF +XQWLQJ f§ f§ f§ f§ f§ f§ f§ )LVKLQJ f§ f§ *DWKHULQJ f§ f§ f§ 7RWDO +RXUV 7KH DJULFXOWXUDO ZRUN FRXQWHG DV VXEVLVWHQFH DFWLYLWLHV LQFOXGHG WKH FOHDULQJ FXOWLYDWLRQ DQG KDUYHVW ZRUN RI WKH WZR PDMRU FURSV VKRZQ 6XEVLVWHQFH DFWLYLWLHV VKRZQ LQ )LJXUH LQFOXGHV WKH FXOWLYDWLRQ KDUYHVW RI VHFRQGDU\ FURSV LQWHUFURSSHG ZLWK WKH PDLQ FURS rr1RW DOO SODQWDLQV DUH FRQVXPHG LQ WKH FRPPXQLW\ VLQFH WKH\ DUH D FDVK FURS $SSUR[Ln PDWHO\ b RI WKH KDUYHVWHG SODQWDLQV DUH GLYHUWHG WR UHJLRQDO PDUNHWV PDLQO\ LQ /DJXQDV

PAGE 240

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

PAGE 241

7KH SODQWLQJ DQG KDUYHVWLQJ RI WKH LQODQG DOWXUDV LV UHJXODWHG RQO\ LQGLUHFWO\ E\ IORRGLQJ LQ WKH IORRGSODLQ 6LQFH PRVW IDPLOLHV DUH ZRUNLQJ LQ WKH IORRGSODLQ GXULQJ WKH VXPPHU 0D\2FWREHUf WKH\ QRUPDOO\ GR QRW KDYH WLPH WR ZRUN VWHDGLO\ DW FOHDULQJ QHZ JURXQG LQ WKH DOWXUD XQWLO 2FWREHU'HFHPEHU 7KLV KDV DOZD\V EHHQ WKH WUDGLWLRQDO WLPH WR FOHDU DOWXUD ODQG DQG PRVW SHRSOH WU\ WR WDNH DGYDQWDJH RI WKH WKUHH WR IRXU ZHHN 'HFHPEHU GU\ VHDVRQ UHIHU WR UDLQIDOO WDEOHV LQ &KDSWHU ,,f WR GU\ DQG EXUQ QHZ DOWXUD ILHOGV +DUYHVWLQJ LQ WKH DOWXUDV JRHV RQ DOO \HDU IRU IRRG FURSV 7KH SODQWDLQV VHQW WR PDUNHW DUH QRUPDOO\ KDUYHVWHG IURP 2FWREHU WR 0DUFK 7KH ODZV RI VXSSO\ DQG GHPDQG RSHUDWH VWULFWO\ LQ WKH SODQWDLQ PDUNHW )LJXUH VKRZV D VFKHGXOH RI SULFHV LQ /DJXQDV RYHU WKH \HDU /RZ SULFHV UHIOHFW WKH IDFW WKDW PDQ\ SHRSOH DUH KDUYHVWLQJ DW WKDW WLPH 7KH UHWXUQ WR SHDN SULFHV LQ -XQH RI LV VRPHZKDW GHFHSWLYH LQ WKDW LQIODWLRQ KDG ORZHUHG WKH SXUFKDVLQJ SRZHU RI WKH VRO E\ DERXW b 7KH 7LSLVKFD (FRQRP\ LQ 4XDOLWDWLYH 7HUPV 7KH PRGH RI SURGXFWLRQ LQ WKH 7LSLVKFD HFRQRP\ LV GRPHVWLF WKDW LV WKH SURGXFLQJ DQG FRQVXPLQJ XQLOW LV

PAGE 242

)LJXUH -n8O $,. 3ODQWDLQ 3ULFHV 3HU 6WDON LQ /DJXQDV LQ 6ROHV

PAGE 243

XVXDOO\ WKH H[WHQGHG IDPLO\ KRXVHKROG (DFK KRXVHKROG KDV IURP RQH WR VHYHUDO QXFOHDU IDPLO\ XQLWV OLYLQJ XQGHU RQH URRI 7KH DYHUDJH &RFDPLOOD KRXVHKROG KDV HLJKW UHVLGHQWV D ILJXUH VOLJKWO\ ODUJHU WKDQ WKH DYHUDJH IRU /DJXQDV GLVWULFW DV D ZKROH &HQVR 1DWLRQDO f 7KH PDMRU H[FHSWLRQ WR WKH GRPHVWLF PRGH RI SURGXFWLRQ LV WKH FDVH RI WZR EURWKHUV VKDULQJ D KRXVH ZKHQ WKH SDUHQWV DUH GHDG RU QRW SUHVHQW ,Q VXFK D FDVH WKH EURWKHUV ZLOO KDYH VHSDUDWH ILHOGV DQG WKHLU ZLYHV ZLOO IUHTXHQWO\ KDYH VHSDUDWH NLWFKHQV 7KH FOHDULQJ DQG FXOWLYDWLRQ RI PDQ\ ILHOGV LV GRQH E\ PLQJD ZRUN SDUW\f ,Q WKH PLQJD D PDQ PRELOL]HV FORVHO\ UHODWHG PHQ DQG ZRPHQ XVLQJ PHPEHUV RI ERWK KLV RZQ SDWULOLQH DQG WKDW RI KLV ZLIH +LV ULWXDO FRSDUHQWV ZLOO EH DVNHG DV ZHOO 7KH ZRUN LV UHFLSURFDWHG RQ DQ LPPHGLDWH OHYHO E\ IRRG WZR PHDOVf GULQN PDVDWR IHUPHQWHG PDQLRF GULQN DQG VRPHWLPHV DJXDUGLHQWH DIWHU ZRUNf DQG KRVSLWDOLW\ D SDUW\ DIWHU ZRUNf ,W LV UHFLSURFDWHG LQ WKH ZRUN VSKHUH E\ WKH SURPLVH RI IXWXUH ZRUN RQ RWKHU PLQJDV 7KH RQO\ PRQH\ ZKLFK FKDQJHV KDQGV LV WKH PRQH\ ZKLFK JRHV LQWR SURFXULQJ DQG SUHSDULQJ WKH IRRG DQG GULQN IRU WKH SDUW\ IRU VSHFLDO IRRG LV UHTXLUHG 0HDW UDWKHU WKDQ ILVK PXVW EH KXQWHG 5LFH UDWKHU WKDQ PDQLRF PXVW EH ERUURZHG RU

PAGE 244

SXUFKDVHG 2QLRQV PXVW EH ERXJKW DQG RWKHU FRQGLPHQWV PXVW EH ORFDWHG 7KH DYHUDJH H[SHQVH RI D PLQJD DSSUR[LPDWHV VROHV DERXW b RI D \HDUnV JURVV LQFRPH IURP FDVKn FURSSLQJf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

PAGE 245

LV QRZ UHVWULFWHG WR WKH YHU\ FORVHO\ UHODWHG KRXVHV ZKLOH PRUH GLVWDQWO\ UHODWHG KRXVHV EX\ IRRG IURP HDFK RWKHU WR PDNH XS GDLO\ VKRUWDJHV 7R EH VXUH WKH SULFH IRU IRRG SURGXFWV ZLWKLQ WKH FRPPXQLW\ LV XVXDOO\ DERXW RQHKDOI RI WKH SULFH FKDUJHG WR RXWVLGHUV EXW WKHUH LV D WHQGHQF\ LQ WLPHV RI VFDUFLW\ WR DSSURDFK WKH SULFHV VHW E\ WKH UHJLRQDO PDUNHWV WKXV DOLHQDWLQJ IDPLO\ PHPEHUV ZKR UHVHQW EHLQJ WUHDWHG OLNH DQ\RQH HOVH &I 6DKOLQV IRU D GLVFXVVLRQ RI WKH UHODWLRQVKLS EHWZHHQ NLQVKLS GLVWDQFH DQG PRGH RI UHFLSURFLW\ ZKLFK WKLV GDWD LQGLFDWHVf 7KH UHVXOW RI WKH SHQHWUDWLRQ RI WKH PRQH\ HFRQRP\ LQ WKHVH VSKHUHV LV IUDJPHQWDWLRQ RI WKH VRFLDO RUGHU 7KH FRPPRQ XVH RI VPDOO DPRXQWV RI PRQH\ LQ WKH FRPn PXQLW\ KDV FRQWULEXWHG WR VRFLDO LQHTXDOLW\ 9HU\ IHZ PHQ KDYH EHHQ DEOH RU ZLOOLQJ WR DIIRUG QHWV EXW WKRVH ZKR KDYH WKHP FDQ DFFXPXODWH PRQH\ HVSHFLDOO\ GXULQJ WLPHV RI VFDUFLW\ 6KDPDQV IRUPHUO\ SDLG LQ IRRG DQG SUHVWLJH DUH QRZ SDLG LQ FDVK DQG FDQ FRPPDQG IDQWDVWLF SULFHV IRU FXULQJ 7KH UHDVRQ IRU WKLV LV WKDW PDQ\ LOOQHVVHV DUH EHOLHYHG WR RULJLQDWH IURP PDO GH JHQWH QHLJKERUO\ LOO ZLOOf DQG HQYLGLD HQY\f 7KH SHQHWUDWLRQ RI WKH FDSLWDOLVn WLF HFRQRP\ DQG FRQVHTXHQW JUDGXDO IUDJPHQWDWLRQ RI WKH VRFLDO RUGHU DFFHOHUDWHV PDO GH JHQWH DQG WKH

PAGE 246

VKDPDQV EHQHILW ILQDQFLDOO\ IURP WKH EUHDNXS RI WKH QDWLYH VRFLHW\ 7KHUH DUH RI FRXUVH ZHDOWK OHYHOLQJ PHFKDQLVPV 7KH PLQJD LWVHOI KDV EHFRPH DQ LPSRUWDQW RQH ,W LV H[WUHPHO\ SUHVWLJLRXV WR JLYH JRRG IRRG DQG GULQN DW D PLQJD 2QH PDQ ZKR KDG QHWV JDYH D PLQJD DW ZKLFK WHQ PHQ DWH WZHOYH ODNH WXUWOHV WDULFD\Df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f PD\ EH SDLG IRU WKH FURZQ 2I WKH WRWDO PRQH\ UDLVHG IRU WKH IHVWLYDO VROHVf DW OHDVW WZRWKLUGV ZDV VSHQW RQ WKH OLTXRU IRU WKH IHVWLYDO PXVLF DQG WKH GUHVVHV RI FKH TXHHQ DQG KHU DWWHQGDQWV 7KH JRYHUQPHQW KDV GHPDQGHG WKDW VFKRROV GHVLVW LQ WKLV IHVWLYDO EXW WKH 7LSLVKTXLQRV

PAGE 247

UHIXVH WR JLYH LW XS SHUKDSV EHFDXVH WKH\ XQFRQVFLRXVO\ UHFRJQL]H LWV YDOXH WR WKH VRFLDO RUGHU LQ ZHDOWK OHYHOOLQJ $ JUHDW GHDO RI VDWLVIDFWLRQ LV JRWWHQ IURP VHHLQJ VRPHRQH LPSRYHULVK KLPVHOI WR EX\ WKH FURZQ DQG 7LSLVKTXLQRV JOHHIXOO\ UHFRXQWHG WR HDFK RWKHU KRZ PXFK ZDV SDLG LQ HYHQ WKRXJK WKH ZLQQHUnV IDWKHU ZDV QRW SDUWLFXODUO\ ZHOO RII $ ZRUG PRUH VKRXOG EH VDLG DERXW WKH IXQFWLRQLQJ RI WKH GRPHVWLF HFRQRP\ ,Q FDVHV ZKHUH KRXVHKROGV FRQVLVW RI DQ HOGHU PDQ KLV ZLIH KLV VRQV DQG WKHLU ZLYHV DQG SHUKDSV DQ XQPDUULHG GDXJKWHU DQG KHU FKLOGUHQ D W\SLFDO FDVHf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

PAGE 248

7KH 3RVLWLRQ RI WKH $JUDULDQ %DQN 7KH PDMRU SUREOHPV IDFHG E\ WKH 7LSLVKTXLQR LQ DJULn FXOWXUH DUH UHODWHG WR WKH IDFWRUV GLVFXVVHG DERYH DYDLOn DELOLW\ RI WKH ODQG QDWXUH RI WKH FURSV DQG PDUNHWV IRU WKH FURSV 7KH VWDWH LQVWLWXWLRQ ZKLFK LPSRVHV LWVHOI PRVW VWURQJO\ RQ WKH 7LSLVKTXLQR LV WKH $JUDULDQ %DQN 7KH EDQN KDV RQH PLVVLRQ QDPHO\ WR IRPHQW DJULFXOWXUDO SURGXFWLRQ E\ H[WHQGLQJ FURS ORDQV WR IDUPHUV :KLOH WKH EDQNnV UHODWLRQVKLSV ZLWK ZKLWHPHVWL]RV HVSHFLDOO\ UHODWLYHO\ ZHOORII RQHV ZKR FDQ KLUH SHRQ ODERU LV FRUGLDO LWV UHODWLRQV ZLWK UXUDO &RFDPLOOD DUH IUHTXHQWO\ QRW JRRG ,W LV QRW VLPSO\ WKH IDFW WKDW WKH EDQN HPSOR\HHV DUH D VRFLDO FODVV PXFK UHPRYHG IURP WKH &RFDPLOOD SHDVDQW FOLHQWV ZLWK ZKRP WKH\ GHDO WKH FODVV UHODWLRQV DIIHFW WKH FOLPDWH LQ ZKLFK ORDQV DUH JLYHQ EXW WKH &RFDPLOOD FDQ GHDO YLWK WKDW 7KH\ NQRZ KRZ WR DSSHDU KXPEOH DQG DUH PDVWHUV DW PDQLSXODWLQJ WKH SDWURQFOLHQW UHODWLRQ LQ WKH VPDOO ODWLWXGH WKH\ DUH DOORZHG 7KH UHDO SUREOHP RI WKH DJUDULDQ EDQN LV ODFN RI SODQQLQJ DQG D JUDYH ODFN RI XQGHUVWDQGLQJ DERXW WKH OLYHV DQG SUDFWLFHV RI WKH SHRSOH ZLWK ZKRP WKH\ GHDO 2QO\ D FRPSOHWH IDLOXUH WR FRPSUHKHQG WKH HFRQRPLF UHDOLWLHV RI /RUHWR FRXOG H[SODLQ VRPH RI WKHLU SROLFLHV LQ WKH ORZHU +XDOODJD UHJLRQ

PAGE 249

$ FDVH LQ SRLQW ZLOO LOOXVWUDWH ZK\ WKLV LV VR 7KH EDQN FDOFXODWHG LQ WKDW SODQWDLQV DUH VROG IRU DQ DYHUDJH RI VROHV SHU VWDON WKURXJK WKH \HDU 7KH\ ZRUNHG KDUG GXULQJ DQG WR JHW SHRSOH WR SODQW WKH FURS DV D FDVK FURS 0DQ\ SHRSOH GLG RSHUDWLQJ RQ WKHLU QRUPDO SODQWLQJ VFKHGXOH $OO WKH SODQWDLQV FDPH WR PDUNHW GXULQJ WKH SHULRG IURP 'HFHPEHU WR 0DUFK LQ GURSSLQJ WKH SULFH GUDVWLFDOO\ WR VROHV 7KH 7LSLVKTXLQRV ZKR KDG WDNHQ WKH EDQNnV DGYLFH DQG ERUURZHG PRQH\ ORVW KHDYLO\ WKURXJK WKH EDQNnV IDLOXUH WR SUHGLFW ODZV RI VXSSO\ DQG GHPDQG IDLOXUH WR HVWLPDWH WKH QXPEHU RI SODQWDLQV WKH /DJXQDV PDUNHW FRXOG DEVRUE DQG IDLOXUH WR ZDUQ WKHP EHFDXVH RI WKH ODUJH QXPEHUV RI KHFWDUHV ILQDQFHG WR GLVn WULEXWH SODQWLQJ WKURXJK WKH \HDU 7KH 7LSLVKTXLQRV ZKR KDG SODQWDLQ ORDQV UHPDLQHG VROHV LQ GHEW E\ 1RYHPn EHU RI DQG WKH EDQN WKHQ UHIXVHG WR OHQG WKHP PRUH PRQH\ 7KH FURS OLHQ ZDV WUDQVIHUUHG WR WKHLU MXWH FURS IRU WKH IROORZLQJ \HDU $ VHFRQG FDVH LQ SRLQW ZLOO IXUWKHU LOOXVWUDWH P\ SRLQW RI YLHZ 7KH EDQN PLJKW H[WHQG D OLQH RI FUHGLW IRU D ILHOG RI DQ\ JLYHQ FDVK FURS SODQWDLQV ULFH RU MXWH 7KHLU OLQH RI FUHGLW LV FDOFXODWHG DW HVWLPDWHG PDUNHW SULFHV DQG VWDQGDUG SURGXFWLRQ ILJXUHV 7KH DPRXQW ORDQHG

PAGE 250

DYHUDJHV DERXW SHU KHFWDUH GHSHQGLQJ RQ WKH FURS 7KH EDQN LQWHUHVW UDWH ZDV DERXW b LQ 0RVW 7LSLVKTXLQRV FDQQRW KDQGOH PRUH WKDQ D KHFWDUH RI DQ\ FDVK FURS EHFDXVH RI WLPH GLIILFXOWLHV VLQFH WKH\ PXVW PDLQWDLQ D VXEVLVWHQFH V\VWHP DV ZHOO DV D FDVK FURS V\VWHP 0DLQn WDLQLQJ DQG PDUNHWLQJ DQ DYHUDJH RI RQH KHFWDUH RI FDVK FURS DV ZHOO DV D VXEVLVWHQFH V\VWHP H[WHQGV WKH DYHUDJH WLPH WKDW DQ DGXOW PDQ PXVW ZRUN WR KRXUV SHU GD\ 7KLV ILJXUH LQFOXGHV WUDYHO WLPH WR WKH ILHOGV DERXW b RI DOO DJULFXOWXUDO WLPHf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f IRU HDFK SD\PHQW 7KH DJURQRPLVW ZKR LV WKH LQVSHFWRU PD\ RU PD\ QRW EH WKHUH ,I KH LV QRW

PAGE 251

WKHUH QR RQH HOVH FDQ JLYH WKH 7LSLVKTXLQR KLV PRQH\ %\ WKH WLPH D FURS VXFK DV ULFH LV PDUNHWHG WKH H[SHQVHV DSSUR[LPDWH WKH ILJXUHV LQ 7DEOH DV D FRQVHUYDWLYH HVWLPDWH 7KH H[SHQVH RI VXSSRUWLQJ D IDPLO\ ZKLOH ZRUNLQJ RQ D FDVK FURS LV QRW LQFOXGHG ,W FDQ EH VHHQ IURP 7DEOH WKDW D 7LSLVKFD IDUPHU ZRXOG RQO\ UHDOL]H DERXW VROHV IRU IRXU PRQWKV ODERU (YHQ SHRQ ZRUN SD\V DW OHDVW VROHV SHU GD\ ZLWK PHDOV DERXW b PRUH WKDQ WKLV ,W LV FRPPRQ WR KHDU ZKLWHPHVWL]RV LQ WKH DUHD FULWn LFL]H WKH &RFDPLOOD IRU QRW UDLVLQJ ULFH 7KH\ VD\ WKH &RFDPLOOD DUH WRR OD]\ WR UDLVH LW $Q HYDOXDWLRQ RI 7DEOH VKRXOG PDNH REYLRXV WKH UHDVRQ ZK\ ULFH LV QRW JURZQ LQ $FKXDO 7LSLVKFD RU DQ\ RWKHU &RFDPLOOD FRPPXQLW\ 7KH\ KDYH KDG H[SHULHQFH 7KH RQO\ SHRSOH ZKR FDQ PDNH PRQH\ DW ULFH PXVW EH DEOH WR PDUNHW LW FKHDSO\ VLQFH PDUNHWLQJ LV DW OHDVW b RI WKH FRVW RI UDLVLQJ WKH FURS :KLWH PHVWL]RV ZKR KDYH KRPHV LQ
PAGE 252

7DEOH ([SHQVHV RI *URZLQJ DQG 0DUNHWLQJ 5LFH LQ $FKXDO 7LSLVKFD &UHGLW ([WHQGHG ([SHQVHV VROHVKHF 'LVFRXQWV RQ :HLJKW RI 5LFH 7UDYHO WR FROOHFW EDQN ORDQ VROHV 7KUHH PRQWKV LQWHUHVW DW b SHU \HDU VROHV 6HHG VROHV &OHDULQJ E\ 0LQJD VROHV &XOWLYDWLRQ E\ 0LQJD VROHV +DUYHVWLQJ WZR PHWULF WRQV VROHV 7UDQVSRUW WR 5LYHU VROHV %RDW WR
PAGE 253

7KH PRVW VHULRXV HIIHFW RI WKH EDQN RQ WKH OLYHV RI WKH 7LSLVKTXLQRV LV WKHLU HQFRXUDJHPHQW RI MXWH DV D FDVK FURS 7KH FURS LV ODERU LQWHQVLYH ZKLFK PHDQV WKDW SHRSOH KDYH WR SXW D KLJK QXPEHU RI KRXUV LQWR LWV SUHSDUDWLRQ 7KH PDMRU FURSV DQG WKHLU WLPH LQSXWV SHU $GXOW 0DOH (TXLYDOHQW $0(f SHU \HDU SHU KHFWDUH DUH VKRZQ LQ 7DEOH 7KH 7LSLVKTXLQRV VHH D SRVVLELOLW\ RI PDNLQJ PRQH\ LQ MXWH VLQFH WKH\ GR QRW FRXQW WKHLU RZQ WLPH DV LQSXWV LQWR WKH FURSSLQJ V\VWHP DQG WKHUH LV OHVV FDVK RXWOD\ LQ MXWH WKDQ LQ ULFH )LUVW FODVV MXWH VROG IRU VROHV SHU NLORJUDP LQ DQG D KHFWDUH RI MXWH PD\ SURGXFH IURP WR NLORn JUDP RI MXWH 7KH DYHUDJH LV FORVH WR NJ LQ 7LSLVKFD ZKLFK SURGXFHV JURVV VDOHV RI VROHV -XWH KDV D JXDUDQWHHG VDOH SULFH WKURXJKRXW WKH \HDU XQOLNH SODQWDLQV DQG WKH FDVK H[SHQVHV RI FOHDULQJ IORRGSODLQ ODQG ZKHUH MXWH LV JURZQ LV DV OLWWOH DV VROHV SHU KHFWDUHWKH PD[LPXP RXWRISRFNHW H[SHQVH IRU RQH PLQJD 6LQFH MXWH LV HVVHQWLDOO\ D ZHHG LW JURZV UDSLGO\ GLVVHPLQDWHV PDQ\ VHHGV DQG FRPSHWHV ZHOO LQ SULPDU\ VXFFHVVLRQf ILHOGV ZKLFK KDYH EHHQ SODQWHG RQFH LQ MXWH ZLOO SURGXFH DJDLQ ZLWKRXW UHVHHGLQJ WKH QH[W WLPH WKH ILHOG LV FXW 7RWDO H[SHQVHV IRU MXWH JURZLQJ DQG PDUNHWLQJ DUH HVWLPDWHG LQ 7DEOH

PAGE 254

7DEOH 7LPH ,QSXWV 3HU $GXOW 0DOH (TXLYDOHQW $0(f 3HU
PAGE 255

7DEOH ([SHQVHV RI *URZLQJ DQG 0DUNHWLQJ -XWH LQ $FKXDO 7LSLVKFD &UHGLW ([WHQGHG ([SHQVHV VROHVKHFWDUH 7UDYHO WR FROOHFW EDQN ORDQ VROHV 6L[ PRQWKV LQWHUHVW DW bn SHU \HDU VROHV 6HHG &OHDULQJ E\ 0LQJD VROHV &XOWLYDWLRQ E\ 0LQJD VROHV +DUYHVW NJ VROHV :DVKLQJ DQG GU\LQJ VROHV 7UDQVSRUW WR /DJXQDV VROHV 7UDQVSRUW WR %DQN VROHV )RRG DQG /RGJLQJ IRU WZR GD\V VROHV 7RWDO &DVK ([SHQVH VROHV *URVV 6DOHV RQ NJ 7RWDO &DVK ([SHQVH 1HW 3URILW VROHV

PAGE 256

%HFDXVH RI WKH EDQNFDXVHG SODQWDLQ GLVDVWHU LQ DQG WKH SRRU PDUNHWLQJ FRQGLWLRQV IRU ULFH WKH 7LSLVK TXLQRV KDYH FRQFHQWUDWHG RQ MXWH DV WKH ODQGXVH WDEOHV 7DEOH f GHPRQVWUDWHG $V WKH 7DEOH DOVR GHPRQVWUDWHG WKH FRQFHQWUDWLRQ RQ ILEUH SURGXFWLRQ KDV EHHQ DW WKH H[SHQVH RI IRRG FURSV 7KLV FDQQRW KHOS EXW LPSRYHULVK WKH ORZHU +XDOODJD UHJLRQ QXWULWLRQDOO\ DV SULFHV IRU SODQWDLQV VKRRW XS LQ *URVV f KDV REVHUYHG D SDUDOOHO SKHQRPHQRQ LQ 1RUWKHDVWHUQ %UD]LO LQ VLVDO DJULFXOWXUH 7KH LQFUHDVH LQ SULFHV LV SUHGLFWDEOH 'XULQJ WKH RLO H[SORUDWLRQ SHULRG ZKHQ IRRG SURGXFWLRQ GURSSHG SODQWDLQV URVH LQ SULFH WR VROHV SHU VWDON LQ /DJXQDV 7KH HIIHFW ZDV WR FRQFHQWUDWH PRQH\ LQ WKH KDQGV RI PDUNHWLQJ PLGGOHPHQ DQG VWRUH RZQHUV QRQH RI ZKRP ZHUH &RFDPLOOD $Q\ SURILWV WKH &RFDPLOOD PDNH RQ WKH RQFRPLQJ ULVH LQ SODQWDLQ SULFHV ZLOO DOPRVW FHUWDLQO\ EH FRQVXPHG LQ LQn IODWHG SULFHV IRU FRQVXPHU JRRGV $W D WLPH ZKHQ /RUHWR VWLOO LPSRUWV IRRG WKH SUDFWLFH RI WKH EDQN LQ FRQFHQn WUDWLQJ LQ MXWH VHHPV WR EH H[WUHPHO\ LUUHVSRQVLEOH DQG VKRUWVLJKWHG

PAGE 257

7KH $JUDULDQ %DQN DQG 5XUDO ,PSRYHULVKPHQW )LQDOO\ ZLWK UHJDUG WR WKH EDQN LW LV XVXDOO\ DUJXHG WKDW GHYHORSPHQWf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f§ LQGLFDWLQJ WKDW WKHUH LV DQ LQYHUVH UHODWLRQ EHWZHHQ WKH GHJUHH WR ZKLFK D FRPPXQLW\ LV LQYROYHG ZLWK WKH EDQN DQG WKH YDOXHSHUVRQ RI PDWHULDO LWHPV LQ WKH FRPPXQLW\

PAGE 258

7DEOH %DQN 'HEW LQ $FKXDO 7LSLVKFD 2YHU D 7KUHH
PAGE 259

7DEOH 'HJUHH RI &RPPXQLW\ ,QYROYHPHQW 0DWHULDO 3UHVWLJH ,WHPV ZLWK $JUDULDQ %DQN YV 9DOXH LQ +XDOODJD &RPPXQLWLHV RI &RPPXQLW\ b RI 0HQ 2YHU \HDUV RI $JH LQ 'HEW WR %DQN 7RWDO 9DOXH RI 0DWHULDO ,WHPV LQ ,QGH[ 9DOXH 3HU 3HUVRQ LQ &RPPXQLW\ (VSHUDQ]D VROHV VROHV 3DPSD +HUPRVD VROHV VROHV
PAGE 260

7KH GLVWULEXWLRQ RI WKH GDWD LQ FROXPQ WKUHH PDNHV PXFK PRUH VHQVH ZKHQ WKH FRPPXQLWLHV DUH DUUDQJHG LQ WHUPV RI WKH QXPEHUV RI SHUVRQV LQ WKH FRPPXQLW\ ZKR KDYH 6SDQLVK VXUQDPHV %RWK 1DUDQMDO DQG (VSHUDQ]D WKH WZR FRPPXQLWLHV ZLWK RYHU VROHVSHUVRQ LQ LQGH[HG PDWHULDO LWHPV KDYH SHUFHQWDJHV RI 6SDQLVK VXUQDPHV ZKLFK DSSURDFK b 7KH RWKHU FRPPXQLWLHV DUH &RFDPLOOD H[FHSW IRU 3DPSD +HUPRVD ZKLFK LV ODUJHO\ &KDPLFXUR /DQG DQG :DWHU 5LJKWV 7KH KLVWRU\ RI WKH ORZHU +XDOODJD YDOOH\ VKRZHG WKDW XQWLO WKH HUD RI WKH UXEEHU ERRP WKH ODQG DQG ZDWHU XVHG E\ $FKXDO 7LSLVKFD UHPDLQHG WKHLUV $IWHU WKH WXUQ RI WKH FHQWXU\ 5RGROIR 3DWRZ VHH &KDSWHU 9,,f FODLPHG DOO RI WKH ODQGV RFFXSLHG E\ 7LSLVKFD DV SDUW RI KLV 3DPSD +HUPRVD KDFLHQGD EXW ZDV XQDEOH WR NHHS WKH FRPPXQLW\ IURP XVLQJ WKH ODQG WKH\ QHHGHG IRU WKHLU VXEVLVWHQFH ILHOGV 7KH ODWHU EDUEDVFR SDWURQV DFWXDOO\ RFFXSLHG WKH ODQG WKH\ QHHGHG IRU EDUEDVFR ILHOGV RIWHQ ODUJH H[WHQVLRQV RI WHUUDLQ SODQWLQJ EDUEDVFR RQ WKH ZHOO GUDLQHG VDQGLHU VRLOV 7KH\ GLG QRW KRZHYHU LQIULQJH WR DQ\ JUHDW GHJUHH RQ WKH DUHD LQ ZKLFK SODQWDLQV DQG PDQLRF DUH QRUPDOO\ SODQWHG E\ WKH 7LSLVKTXLQRV

PAGE 261

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n YHUHO\ RYHUWD[HG DW SUHVHQW DQG VRPH SHRSOH PXVW ZDON DV ORQJ DV IRXU KRXUV WR WKHLU ILHOGV $W $FKXDO 7LSLVKFD WKH VWUHDP RI
PAGE 262

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f LV GLUHFWO\ DWWULEXWDEOH WR WKH VWLPXODWLRQ RI MXWH DV D FDVK FURS DQG WKH OLPLWHG ODQGV DYDLODEOH IRU LWV SODQWLQJ ZLWKLQ D UHDVRQDEOH GLVWDQFH IURP 7LSLVKFD

PAGE 263

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n PHQWDWLRQ RI WKH VRFLHW\ DQG IXUWKHU LQGLYLGXDO DOLHQDWLRQ 7KH TXLFNHVW URXWH WR ODQGWLWOHV LV WKURXJK WKH QDWLYH FRPPXQLW\ ODZ f EXW RQH LV IRUFHG WR FRQFOXGH WKDW WKH JRYHUQPHQW LV UHOXFWDQW WR DSSO\ WKDW ODZ LQ WKH ODUJH ULYHU YDOOH\V ,W LV HDVLHU WR PDLQWDLQ WKDW WKH ,QGLDQV VXFK DV WKH &RFDPLOOD KDYH DVVLPLODWHG RU GLVDSSHDUHG

PAGE 264

)LVKLQJ 5LJKWV RU 6WDUYDWLRQ 7KH TXHVWLRQ RI ILVKLQJ ULJKWV LV HYHQ PRUH SUHVVLQJ 7KH 7LSLVKTXLQRV DUH QRZ DQG KDYH DOZD\V EHHQ GHSHQGHQW RQ WKH ODNH IRU PRVW RI WKHLU SURWHLQ UHVRXUFHV 7KH IDFWV DUH WKHVH 7KH ODNH VXUIDFH LV DSSUR[LPDWHO\ NP 7KH FRPPXQLW\ KDUYHVWV DERXW WRQV RI IUHVK ILVK SHU \HDU 7KLV ILVK LV FDSDEOH RI VXSSO\LQJ DSSUR[LPDWHO\ JUDPV RI SURWHLQ SHU GD\ SHU SHUVRQ LQ WKH FRPPXQLW\ LI QRQH LV H[SRUWHG $FWXDOO\ DERXW b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n WLWLHV RI EDUEDVFR ILVK SRLVRQ ZHUH EHLQJ SXW WR XVH WR KDUYHVW WKH LQFUHDVLQJO\ VFDUFH ILVK %\ WKH SUREOHP ZDV DFXWH ,W ZDV QRW XQWLO WKH FRPPXQLW\ DJDLQ UHDFKHG D OHYHO RI SRSXODWLRQ LQ WKDW WKH ILVK SRSXODWLRQ EHJDQ WR UHFRYHU $OO KLVWRULFDO LQIRUPDWLRQ LQGLFDWHV D EDODQFH EHWZHHQ WKH KXPDQ SRSXODWLRQ RQ WKLV ODNH DQG WKH ILVK SRSXODWLRQ DW DSSUR[Ln PDWHO\ SHRSOH SHU VTXDUH NLORPHWHU RI ODNH VXUIDFH ZLWK FXUUHQW WHFKQRORJ\ 7KH 3HUXYLDQ ILVKLQJ PLQLVWU\ PDLQWDLQV WKH SULQFLSOH WKDW DOO ZDWHUZD\V EHORQJ WR WKH VWDWH

PAGE 265

$FFRUGLQJO\ WKH\ JUDQW ILVKLQJ OLFHQVHV WR FRPPHUFLDO ILVKHUPHQ ZLWKRXW UHVWULFWLRQ DV WR ZKHUH WKH\ FDQ ILVK H[FHSW WKDW WKH\ DUH QRW DOORZHG WR ILVK FHUWDLQ UHVHUYHG ]RQHV VHW DVLGH IRU SUHVHUYLQJ HQGDQJHUHG VSHFLHV 7KH ODNH RI $FKXDO 7LSLVKFD KDV EHHQ HQWHUHG UHn SHDWHGO\ LQ WKH SDVW IHZ \HDUV E\ UHODWLYHO\ KLJKO\ FDSLWDOL]HG ZKLWHPHVWL]R ILVKHUPHQ ZKR KDYH YLUWXDOO\ HOLPLQDWHG WKH ODUJHU ILVK DQG KDYH VHULRXVO\ XSVHW WKH ODNH IRRG FKDLQ 6RPH RI WKH &RFDPLOOD ZRUN ZLWK DQG IRU WKHVH ILVKHUPHQ HYHQ WKRXJK VXFK ZRUN LV GHWULPHQWDO WR WKH ORQJUDQJH VXUYLYDO RI WKH FRPPXQLW\ 7KH ILVKLQJ ERDWV SURYLGH DQ HDV\ PDUNHW IRU WKHLU FDWFK 7KH JRYHUQPHQW KDV PDGH OLWWOH DWWHPSW WR DVVHVV WKH DFWXDO RU SRWHQWLDO SURGXFWLRQ RI ODNHV VXFK DV $FKXDO 7LSLVKFD QRU DUH WKH\ SDUWLFXODUO\ FRQFHUQHG ZLWK ZKHUH WKH FRPPHUFLDO ILVKHUPHQ ILVKnn 7KH\ GR QRW NQRZ WKH KXPDQ SRSXODWLRQ ZKLFK YLWDOO\ GHSHQG RQ WKH ODNHV WR ZKLFK WKH\ VR IUHHO\ JUDQW ILVKLQJ ULJKWV 7KH UHVXOW RI VXFK SROLFLHV ZLOO FHUWDLQO\ EH WKH FUHDWLRQ RI QXWULWLRQDO GHILFLHQFLHV LQ KXQGUHGV RI FRPPXQLWLHV OLNH 7LSLVKFD 8OWLPDWHO\ SRSXODWLRQV ZLOO EH VWLPXODWHG HYHQ PRUH WR PRYH WR XUEDQ FHQWHUV DQG PRUH SHRSOH ZLOO EH GULYHQ RXW RI IRRG SURGXFn WLRQ 7KH UXVK WR GHYHORS WKH ILVKLQJ UHVRXUFHV RI /RUHWR KDV EHHQ ODUJHO\ DW WKH H[SHQVH RI QDWLYH GLHWV

PAGE 266

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f )LYH VSHFLHV RI ZLOG PHDW DUH UHJXODUO\ FRQVXPHG )HZ ELUGV DUH NLOOHG QRZ VLQFH WKH PHQ KXQW ZLWK VKRWJXQV DQG DUH UHOXFWDQW WR ZDVWH H[SHQVLYH VKHOOV RQ VPDOO TXDQWLWLHV RI PHDW )LYH ZLOG IUXLWV DUH D UHJXODUO\ H[SORLWHG UHVRXUFH 6XPPDU\ ,Q VXPPDU\ LW LV GLIILFXOW WR HVFDSH WKH FRQFOXVLRQ WKDW WKH HIIHFWV RI WKH FRQMXQFWLRQ RI QDWLYH DQG QDWLRQDO HFRQRPLHV DUH GHWULPHQWDO WR WKH QDWLYHV LQ SXUHO\ PDWHULDO

PAGE 267

7DEOH 5HVXOWV RI 7KUHH 'LHWDU\ 6WXGLHV LQ $FKXDO 7LSLVKFD DW 9DU\LQJ 3RLQWV LQ WKH )ORRG &\FOH 'DWH /DNH /HYHO *UDPV3HUVRQ 3URWHLQ *UDPV3HUVRQ )DW *UDPV3HUVRQ &DUERK\GUDWH 7RWDO &DORULHV 3HU 3HUVRQ 5LVLQJ DQG MXVW VKRUW RI IORRG OHYHO )LVKLQJ LV UHODWLYHO\ XQSURGXFWLYH 0HDQ /DNH IORRGHG +XQWLQJ WDNLQJ SODFH LQ UHVWLQJDV IRU ZLOG PHDW 0HDQ /RZ ZDWHU )LVKLQJ LV UHODWLYHO\ HDV\ DQG SURGXFWLYH 0HDQ (DFK RI WKH WKUHH VWXGLHV ZDV FRQGXFWHG RQ D VLQJOH IDPLO\ E\ DFWXDO REVHUYDWLRQ DQG ZHLJKLQJ RI WKH IRRGV FRQVXPHG 7KH JUDP YDOXHV SHU JUDPV RI HGLEOH SRUWLRQ ZHUH WDNHQ IURP :X /HXQJ )RRG &RPSRVLWLRQ 7DEOH IRU 8VH LQ /DWLQ $PHULFD

PAGE 268

7DEOH 3URSRUWLRQV RI )RRG E\ :HLJKW 6XSSOLHG E\ 9DULRXV &DWHJRULHV RI $FWLYLW\ 'DWH RI 3ODQWDLQV 2WKHU $J 2WKHU *DWKHUHG )HUPHQWHG 3XUFKDVHG 6WXG\ DQG 0DQLRF 3URGXFWV )LVK 0HDW 3URGXFWV %HYHUDJHV 3URGXFWV 7RWDOV WKURXJK b b b f§ b b b b WKURXJK b b b b b f§ b b WKURXJK b b b b b b b b 0HDQ IRU
PAGE 269

WHUPV 7KH OHVV DFFXOWXUDWHG DQG WKHUHIRUH PRUH YLVLEOH ,QGLDQV FDQ QRZ UHFHLYH SDUWLDO SURWHFWLRQ E\ PHDQV RI ODQGWLWOHV DQG VSHFLDO UHODWLRQVKLSV ZLWK JRYHUQPHQW DJHQFLHV ZKLFK HQDEOH WKHP LQ HIIHFW WR E\SDVV SDUW RI WKH ZKLWHPHVWL]R FRPPHUFLDO DQG PDUNHWLQJ VWUXFWXUH 7KH &RFDPLOOD GR QRW KDYH WKLV RSWLRQ DQG LW VHHPV XQOLNHO\ WKDW WKH\ ZLOO EH RIIHUHG D FKDQFH WR SURWHFW WKHPVHOYHV DV &RFDPLOOD :KLOH VSOHQGLG DUJXPHQWV FDQ EH PDGH WKDW WKH &RFDPLOOD DUH LQ IDFW ,QGLDQV DQG WKDW WKH IUDJn PHQWLQJ DQG LPSRYHULVKLQJ HIIHFWV RI GHYHORSPHQW ZRUN PRUH KDUGVKLS RQ WKHP WKDQ RQ DQ\ RWKHU ,QGLDQV WKH SROLn WLFV RI /RUHWRnV GHYHORSPHQW PLWLJDWH DJDLQVW WKHLU UHFHLYLQJ VSHFLDO KHOS ,W PXVW EH UHFRJQL]HG WKDW LQ JHQHUDO WHUPV WKH 7LSLVKTXLQRV DUH LQ D VLPLODU HFRQRPLF QLFKH YLV £ YLV WKH QDWLRQDO HFRQRP\ DV DUH QHLJKERULQJ ZKLWHPHVWL]R VHWWOHUV +RZHYHU WKH ZKLWHPHVWL]R VHWWOHUV GLIIHU IURP WKHP LQ LPSRUWDQW ZD\V 7KH VRFLDO RUJDQL]DWLRQ RI WKHLU ZRUN LV PXFK PRUH LQGLYLGXDOL]HG WKDQ WKH 7LSLVKTXLQRV 7KH 7LSLVKTXLQRV EHFDXVH RI XQFHUWDLQWLHV GHULYHG IURP WKHLU SRVLWLRQ DW WKH ERWWRP RI WKH VRFLDO KHDS XVH EDQN FDSLWDO LQ UHODWLYHO\ LQHIILFLHQW ZD\V VSHQGLQJ DV OLWWOH DV SRVVLEOH DQG JXDUGLQJ WKH PRQH\ IRU HPHUJHQFLHV

PAGE 270

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n FHQWDJHV RI 6SDQLVK VXUQDPHV

PAGE 271

1RWH A7KLV LV QRW WR VD\ KRZHYHU WKDW WKH 3HUXYLDQ JRYHUQPHQW LQ WKH SHUVRQ RI WKH PLQLVWU\ RI ILVKLQJ LV WRWDOO\ XQDZDUH RI WKH SRWHQWLDO SUREOHP FUHDWHG E\ IUHH DFFHVV WR SRSXODWHG ODNHV FI %DQFR GH &UGLWR GHO 3HUX /DQGD 0LQLVWHULR GH 3HVTXHUD 3LD]]D /DUUDRQJR DQG 9LOGRVR %DFD f ,W LV VLPSO\ WKDW WKH TXDOLW\ RI LQIRUPDWLRQ DERXW SRSXODWLRQV DQG WKHLU ORFDWLRQV LV VR SRRUO\ FRRUGLQDWHG ZLWK HFRORJLFDO LQIRUPDWLRQ DERXW WKH KDELWDW RI WKH SRSXODWLRQV WKDW OLWWOH SURJUHVV KDV EHHQ PDGH )XUWKHUPRUH VXFK DQ LQYHVWLJDWLRQ ZRXOG UHTXLUH WKH XVH RI VRFLDOVFLHQWLVWV DV ZHOO DV KRUGHV RI WHFKQLFLDQV DQ H[SHQVLYH SURVSHFW

PAGE 272

&+$37(5 ,; 62&,$/ 25*$1,=$7,21 7+( (*$/,7$5,$1 &20081,7< $1' 7+( $87+25,7$5,$1 67$7( 7KLV FKDSWHU GHVFULEHV RQO\ VRPH RI WKH VDOLHQW DVSHFWV RI VRFLDO RUJDQL]DWLRQ LQ $FKXDO 7LSLVKFD ,QGHHG D VHSDUDWH ERRN FRXOG DQG VKRXOG EH ZULWWHQ DERXW WKH VRFLDO DQG HFRQRPLF RUJDQL]DWLRQ RI WKLV RU D VLPLODU FRPPXQLW\ VLQFH LW W\SLILHV VR PDQ\ SUREOHPV LQ ZKDW LV VRPHWLPHV FDOOHG UXUDO GHYHORSPHQW LQ /RUHWR ,W LV DW WKH FRQn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

PAGE 273

FRPPXQLWLHV DV QDWLYH FRPPXQLWLHV DQG WKHUHIRUH IDLOV WR XQGHUVWDQG WKH QDWXUH RI WKH VRFLRHFRQRPLF V\VWHP RI WKH &RFDPLOOD QDWLYH FRPPXQLW\ LW WULHV WR LPSRVH LWV RZQ RUJDQL]DWLRQDO VWUXFWXUH RQ WKH FRPPXQLW\ LQ WKH IRUP RI LQVWLWXWLRQV VXFK DV VFKRROV EDQNV SROLFH DQG WKH OLNH 7KH IDLOXUH RI WKH LQVWLWXWLRQ HVSHFLDOO\ WKH PHGLFDO DQG HGXFDWLRQDO LQVWLWXWLRQVf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

PAGE 274

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n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

PAGE 275

FRPPXQLW\ EXW WKH SUREOHPV DUH VR HPEHGGHG LQ WKHLU RZQ DQG WKH ZKLWHPHVWL]R VRFLDO VWUXFWXUH WKDW WKH\ KDYH OLWWOH LQVLJKW LQWR WKH UHDVRQV IRU WKH IDLOXUH 7KH HVVHQWLDO FODVK LV EHWZHHQ D VPDOO VXEVLVWHQFH VRFLHW\ EDVHG RQ NLQVKLS UHODWLRQV DQG WKH EXUHDXFUDFLHV RI D ODUJH VWDWH EDVHG RQ IRUPDO UXOHV DQG SURFHGXUHV 7KH FRQWUDGLFWLRQ PLJKW QRW EH VR VHULRXV LI WKHUH ZHUH QRW DGGHG IDFWRUV RI RYHUW UDFLDOVRFLDO FODVV GLVFULPLQDWLRQ DQG PDMRU VRFLRHFRQRPLF GLIIHUHQFHV EHWZHHQ WKH UHSUHVHQWDn WLYHV RI WKH VWDWH DQG WKH 7LSLVKTXLQRV 7KH KDFLHQGD V\Vn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n SRORJLVWV LQWR ILFWLYH NLQVPHQ DUH FRQVWDQWO\ QRWHG ,W VKRXOG DOVR EH QRWHG KHUH WKDW WKH XVH RI IRUFH WR ZRUN RXW WKH FRQWUDGLFWLRQV VXUIDFHG DV UHFHQWO\ DV \HDUV DJR GXULQJ WKH EDUEDVFR ERRP VHH &KDSWHU 9,,f

PAGE 276

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n VRXUFHV ZDV QHYHU D SUREOHP XQWLO UHFHQWO\ 7KLV SUREDEO\ LQKLELWHG WKH GHYHORSPHQW RI LQGLJHQRXV SROLWLFDOO\ FHQn WUDOL]HG VWUXFWXUHV H[FHSW LQ WKH PLGGOH $PD]RQ ZKHUH SRSXn ODWLRQ GHQVLWLHV VHHPHG WR KDYH EHHQ PXFK JUHDWHU 7KH FRQVHTXHQFH RI WKH PRGH RI SURGXFWLRQ RI WKH &RFDPLOOD LV D FHUWDLQ LQGHSHQGHQFH RI KRXVHKROG XQLWV DOWKRXJK RYHU WLPH WKH JURVV VL]H RI WKH XQLW KDV UHGXFHG IURP SHUVRQV WR MXVW RYHU HLJKW SHUVRQV 7KLV UHGXFWLRQ KDV SUREDEO\ QRW KDG QHJDWLYH FRQVHTXHQFHV LQ

PAGE 277

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f 6DQJUHV GR QRW PL[ KHQFH RQH ORRNV IRU D PDWH LQ DQRWKHU VDQJUH 9LRODWLRQV RI WKLV SURKLELWLRQ DUH H[WUHPHO\ UDUH &KLOGUHQ EHORQJ WR WKH VDQJUH RI WKHLU IDWKHUV EXW SUHVHUYH WKH PDWHUQDO VXUQDPH DV D VHFRQG VXUn QDPH LQ 6SDQLVK IDVKLRQ 7KH LPSRUWDQFH RI PDWHUQDO VXUQDPHV

PAGE 278

)LJXUH *URXSV RI 3DWULOLQHDO .LQVPDQ LQ $FKXDO 7LSLVKFD fFWU

PAGE 279

ZDV LOOXVWUDWHG IRU WKH ZULWHU E\ KLV ILUVW WULS WR $FKXDO 7LSLVKFD LQ $ QLQH \HDU ROG ER\ ZDV DEOH WR JLYH WKH FRPSOHWH QDPHV RI HYHU\ PDQ DQG ZRPDQ LQ WKH YLOODJH ZLWK ERWK SDWHUQDO DQG PDWHUQDO VXUQDPHV 7KHUH ZHUH IHZ FRUUHFWLRQV DV WKH FRPPXQLW\ EHFDPH EHWWHU NQRZQ ,QWHUHVn WLQJO\ KRZHYHU DGXOW PDOHV IUHTXHQWO\ FDQQRW UHFDOO WKH QDPHV RI DGXOW ZRPHQ LQ RWKHU IDPLOLHV SUREDEO\ VLQFH WKH PDWWHU LV QR ORQJHU RI LQWHUHVW WR WKHP DV DOUHDG\ PDUULHG PHQ 6DQJUHV GR QRW KDYH D UHFRJQL]HG IRXQGHU QRU GR WKH\ KDYH WRWHPV DVVRFLDWHG ZLWK WKHP DW SUHVHQW EXW (VSLQRVD f SURYLGHV HW\PRORJLHV ZKLFK LQGLFDWH DQLPDO DQG YHJHWDEOH RULJLQ RI VRPH VXUQDPHV 7KH GHSWK RI NQRZQ JHQHRORJLHV LV UDUHO\ RYHU WZR DVFHQGLQJ JHQHUDWLRQV 0HPEHUV RI GLIIHUHQW VHJPHQWV RI RQH VDQJUH UHFRJQL]H WKDW WKH\ DUH FORVHO\ UHODWHG HYHQ LI WKH\ DUH QRW FRPSOHWHO\ FHUWDLQ RI WKH JHQHRORJLFDO FRQQHFWLRQ 7KH 6SDQLVK WHUP SULPR FRXVLQf IUHTXHQWO\ WDNHV FDUH RI DPELJXRXV UHODWLRQn VKLSV 7KH &RFDPLOOD IRUPHUO\ KDG ELIXUFDWHPHUJLQJ NLQVKLS WHUPLQRORJ\ LQ WKH ILUVW DVFHQGLQJ JHQHUDWLRQ ZLWK ,URTXRLV FRXVLQ WHUPV VHH DSSHQGL[ ,9 IRU WKH EDVLF V\VWHP DQG D EULHI GLVFXVVLRQ RI VRPH RI WKH PRUH LQWHUHVWLQJ DVSHFWV RI

PAGE 280

WKH ROG NLQVKLS V\VWHPf 7KHLU SUHVHQW NLQVKLS V\VWHP KDV ORVW VRPH RI WKH GLVWLQFWLRQV ZKLOH SUHVHUYLQJ RWKHUV QHFHVVDU\ WR WKH PDUULDJH V\VWHP $V )LJXUH VKRZV WKH SDUDOOHO YHUVXV FURVVFRXVLQ GLVWLQFWLRQV LV PDLQWDLQHG 7KLV LV VR EHFDXVH PDQ\ PDUULDJHV VWLOO WDNH SODFH EHWZHHQ FURVVFRXVLQV $GGLWLRQDO UXOHV RI NLQVKLS GLIIHUHQW IURP WKH 6SDQLVK V\VWHP DUH VKRZQ LQ )LJXUH 7KH FKLOGUHQ RI SULPRV FDOO HDFK RWKHU SULPR 7KH SDUHQWV RI RQHnV RULUQRV DUH FDOOHG WLS DQG WLD XQFOH DQG DXQWf DQG WKH JUDQGSDUHQWV RI SULPRV DUH FDOOHG DEXHOR DQG DEXHOD JUDQGIDWKHU DQG JUDQGPRWKHUf $ FKHFN ZLWK WKH RULJLQDO &RFDPLOOD WHUPLQRORJ\ ZLOO UHYHDO WKH FRLQFLGHQFH RI WKH WZR V\VWHPV 7KH JHQHUDWLRQV WZLFH UHPRYHG IURP RQHnV RZQ UHFHLYH +DZDLLDQ WHUPLQRORJ\ LQ HLWKHU ODQJXDJH 7KH &DWKROLF SULHVWV LQ WKH DUHD WRGD\ GR QRW XQGHUVWDQG WKH SDUW RI WKH V\VWHP VKRZQ LQ )LJXUH 7KH\ IUHn TXHQWO\ VXIIHU SDQJV RI JXLOW IRU PDUU\LQJ SULPRV ZKHQ LQ IDFW WKH UHODWLRQVKLS PD\ EH VHYHUDO JHQHUDWLRQV UHPRYHG DQG H[WUHPHO\ GLVWDQW 0DUULDJH WHQGV WR EH EHWZHHQ VDQJUHV ZKLFK DUH VSDWLDOO\ SUR[LPDWH $FKXDO 7LSLVKFD LV b HQGRJDPRXV 2QO\ b RI WKH SRSXODWLRQ ZDV ERUQ LQ DQRWKHU YLOODJH 7KLV HQGRJDP\ UDWH LV H[WUHPHO\ KLJK HYHQ IRU WKLV ]RQH EXW LW PXVW EH

PAGE 281

2 W LD $ W L R $ • SDSD PDPD • W L D $ W R $f ƒR KHUPDQR KHUPDQD KHUPDQR KHUPDQD )LJXUH &RFDPLOOD 8VH RI 6SDQLVK .LQVKLS 7HUPV )LJXUH &RFDPLOOD 8VH RI 3ULPR7LR6REULQR$EXHOR 7HUPV

PAGE 282

UHFDOOHG WKDW 7LSLVKFD LV RQH RI WKH WKUHH ROGHVW &RFDPLOOD FRPPXQLWLHV HDFK RI ZKLFK KDV VLPLODU HQGRJDP\ UDWHV $Q DQDO\VLV RI VHYHQ VPDOOHU QHLJKERULQJ FRPPXQLWLHV VKRZV DQ DYHUDJH YLOODJH HQGRJDP\ UDWH RI b 7ZR RI WKHVH FRPn PXQLWLHV KDYH UHODWLYHO\ KLJK UDWHV RI 6SDQLVK VXUQDPHV 7KHLU HQGRJDP\ UDWH FRQVLGHUHG DORQH LV OHVV WKDQ b 7KH RWKHU ILYH DUH FRPSRVHG PRVWO\ RI &RFDPLOOD RI YDULRXV VDQJUHV PDQ\ RI WKHP HPLJUDQWV IURP WKH ODUJHU &RFDPLOOD FRPPXQLWLHV OLNH 7LSLVKFD 7KHLU HQGRJP\ UDWH LV DERXW b 7KHVH ILYH QDWLYH FRPPXQLWLHV ZKLFK DUH VPDOOHU WKDQ 7LSLVKFD WHQG WR ILQG PDWHV LQ 7LSLVKFD /DJXQDV DQG $UDKXDQWH (QGRJDP\ ZLWKLQ WKH &RFDPLOOD QDWLYH HWKQLF JURXS DV D ZKROH LV GLIILFXOW WR HVWLPDWH EXW LW LV XQn OLNHO\ WR EH ORZHU WKDQ b ,Q H[DPLQLQJ EDSWLVPDO DQG PDUULDJH UHFRUGV LQ /DJXQDV DQG LQ D FHQVXV RI WHQ ORZHU +XDOODJD FRPPXQLWLHV RQO\ DERXW b RI FDVHV ZHUH HQn FRXQWHUHG ZKHUH 6SDQLVK DQG &RFDPLOOD VXUQDPHV ZHUH PL[HG LQ D PDUULDJH )HZ FDVHV DUH HQFRXQWHUHG ZKHUH PDWHUQDO DQG SDWHUQDO VXUQDPHV DUH PL[HG 6SDQLVK DQG &RFDPLOOD 7KH YHU\ ORZ SURSRUWLRQ RI RXWPDUULDJH LV GXH DV PXFK WR SUHMXGLFH RQ WKH SDUW RI ZKLWHPHVWL]RV ZLWK 6SDQLVK VXUQDPHV DV LW LV WR D GHVLUH E\ WKH &RFDPLOOD WR PDLQWDLQ WKH LQWHJULW\ RI WKH QDWLYH HWKQLF JURXS :KLWHPHVWL]R

PAGE 283

SDUHQWV HYHQ SRRU RQHV VLPSO\ GR QRW ZDQW WKHLU FKLOGUHQ WR PDUU\ FKRORV 7KLV RI FRXUVH LV D SRZHUIXO GHPRQVWUDn WLRQ RI FRQWLQXHG &RFDPLOOD LGHQWLW\ DQG YLDELOLW\ $V PHQWLRQHG DERYH YLOODJH HQGRJDP\ LQ $FKXDO 7LSLVKFD LV b 2I WKH YLOODJHHQGRJDPRXV PDUULDJHV b DUH ZLWKLQ D VLQJOH EDUULR 7KH PRVW GHVLUDEOH PDUULDJH KDV DOZD\V EHHQ EHWZHHQ WZR VDQJUHV ZKLFK FRQWLQXH WR H[FKDQJH ZRPHQ RYHU WKH \HDUV 0DUULDJHV DUH FDOOHG FDPELRV H[FKDQJHVf ZKHQ WZR ZRPHQ LQ WKH VDPH JHQHUDWLRQ DUH H[FKDQJHG DV LQ )LJXUH $QWKURSRORJLVWV ZLOO UHFRJQL]H D VLPSOH H[FKDQJH V\VWHP ZLWK ELODWHUDO FURVVFRXVLQ PDUULDJH LQ WKLV SDWWHUQ $V LV DSSDUHQW LQ )LJXUH DQ\ IDPLO\ RI WKH LPPHGLDWH VDQJUH PD\ JLYH WKH ZRPDQ 7KXV LQ WKLV FDVH JHWV D ZRPDQ IURP 6DQJUH % +H JLYHV D GDXJKWHU f WR 6DQJUH % \HDUV ODWHU DQG % JLYHV D GDXJKWHU f WR V EURWKHUnV VRQ f 7KH FDPELR LV FRQFHLYHG DV IRU &DPELRV DUH QR ORQJHU DV SUHYDOHQW DV WKH\ ZHUH WKRXJK VRPH ROGHU SHRSOH PDLQWDLQ WKDW LW LV VWLOO WKH GHVLUHG PDUULDJH 3UREDEO\ QR PRUH WKDQ b RI WKH PDUULDJHV DUH QRZ SDUW RI IRUPDO FDPELRV EXW D ORRVH H[FKDQJH V\VWHP RYHU WKH JHQHUDWLRQV SHUVLVWV $ PDOH WHQGV WR ILQG D ZLIH ZKHUH KLV IDWKHU IRXQG RQH LQ KLV PRWKHUnV VDQJUH ZKLFK KHOSV H[SODLQ ZK\ PDWHUQDO VXUQDPHV DUH UHFDOOHG E\ \RXQJ

PAGE 284

6$1*5( $ VDQJUH E t PDOH 2 IHPDOH L PDUULDJH M GHVFH QW n A V L E L Q J )LJXUH 7\SLFDO 0DUULDJH ([FKDQJH 2YHU 7ZR *HQHUDWLRQV WKLV PDUULDJH EHWZHHQ XQFOH DQG QLHFH ZDV QRWHG IRU WKH RPDJXD E\ HDUO\ PLVVLRQDULHV $ L PDOH L IHPDOH P D U U L DJ H GHVFHQW VLEOLQJ )LJXUH 7\SLFDO &URVV&RXVLQ ,QWHU*HQHUDWLRQDO 0DUULDJH

PAGE 285

SHRSOHf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n PDUU\LQJ NLQVPHQ ZKR WHQG WR EH VSDWLDOO\ SUR[LPDWH LV UHn IOHFWHG LQ DOO ODUJHU RUJDQL]DWLRQV ZKLFK DUH LQGLJHQRXV WR WKH FRPPXQLW\ 7KH WZR VSRUWV FOXEV WDNH WKHLU PHPEHUn VKLS PDLQO\ IURP WKH EDUULR LQ ZKLFK WKH EXLOGLQJ ZKLFK KRXVHV WKH FOXE LV ORFDWHG DOWKRXJK WKH EXLOGLQJV DUH OHVV WKDQ PHWHUV DSDUW 7KH PHPEHUVKLS RI RQH RI WKHP LV b IURP WKH 0XUD\DUL VDQJUH ZKLOH WKH RWKHU KDV QR 0XUD\DULV DV PHPEHUV .LQVKLS ULYDOULHV DUH ERWK H[SUHVVHG DQG KHLJKWHQHG E\ FRPSHWLWLRQ EHWZHHQ WKH WZR FOXEV 2I FRXUVH VRFFHU KDV YHU\ LPSRUWDQW IXQFWLRQV LQ FUHDWLQJ PDOH VROLGDULW\ EH\RQG LPPHGLDWH NLQVPHQ DQG HVSHFLDOO\ LQ LQWHUFRPPXQLW\ FRPPXQLFDWLRQ ,W LV DOVR LPSRUWDQW LQ

PAGE 286

WKH PDUULDJH V\VWHP IRU LW LV IUHTXHQWO\ WKURXJK YLVLWLQJ RWKHU FRPPXQLWLHV WR SOD\ VRFFHU WKDW \RXQJ PHQ IURP WKH VPDOOHU FRPPXQLWLHV ILQG ZLYHV 0RVW LPSRUWDQW GLVWLQFWLRQV LQ &RFDPLOOD VRFLDO RUJDQLn ]DWLRQ DUH HYHQWXDOO\ H[SUHVVHG DV VRFFHU WHDPV 7KH IROORZ LQJ FRPSHWLWLRQV ZHUH REVHUYHG RYHU DQ PRQWK SHULRG 0DOHV LQ FOXE $ YV PDOHV LQ FOXE % )HPDOHV LQ FOXE $ YV IHPDOHV LQ FOXE % ZLYHV DQG GDXJKWHUV RI WKH PDOHV LQ WKH UHVSHFWLYH FOXEVf 0DUULHG PDOHV YV XQPDUULHG PDOHV 0DUULHG IHPDOHV YV XQPDUULHG IHPDOHV $UP\ YHWHUDQV YV QRQYHWHUDQV &RPSHWLWLRQ ERWK LQ DQG RXW RI VFKRRO EHWZHHQ PDOHV RI YDULRXV DJH JURXSV &RPSHWLWLRQ ERWK LQ DQG RXW RI VFKRRO EHWZHHQ IHPDOHV RI YDULRXV DJH JURXSV ,QWHUFRPPXQLW\ VFKRRO FRPSHWLWLRQ IRU PDOHV ,QWHUFRPPXQLW\ VFKRRO FRPSHWLWLRQ IRU IHPDOHV
PAGE 287

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f VLPSO\ EHFDXVH LW DWWHPSWV WR FUHDWH D VLWXDWLRQ LQ ZKLFK VRPH SHRSOH DUH PHPEHUV RI WKH FRRSHUDWLYH DQG VRPH DUH QRW 7KH PHGLFLQHV DUH SDLG IRU E\ PHPEHUV DQG DUH WR EH VROG WR WKHP DW D FKHDSHU SULFH WKDQ WR QRQPHPEHUV %XW WKH &RFDPLOOD DFW E\ NLQVKLS UXOHV QRW E\ IRUPDO UXOHV RI WKH KRVSLWDO VHUYLFH RI WKH VWDWH :KHQ D PHPEHUnV EURWKHU RU EURWKHUnV ZLIH RU FKLOGUHQ QHHG PHGLFLQH WKH PHPEHU ZLOO REWDLQ LW DW PHPEHUVKLS UDWHV (YHQWXDOO\ WKH IXQGV RI WKH FRRSHUDn WLYH ZLOO EH H[KDXVWHG 7KH RQO\ VROXWLRQ ZRXOG EH WR RUJDQL]H WKH HQWLUH FRPPXQLW\ EXW PDQ\ SHRSOH GR QRW ZLVK WR EHORQJ VLQFH PHPEHUVKLS UHTXLUHV D FDVK RXWOD\

PAGE 288

7KH OHDVWXQGHUVWRRG IHDWXUH RI WKH PDQ\IDFHWHG VRFLDO EHKDYLRU RI WKH 7LSLVKTXLQR GHDOV ZLWK WKH QRQLQWUXVLYH QDWXUH RI WKHLU VRFLDO UHODWLRQV :KLWHPHVWL]R FXOWXUH ZLWK LWV HDV\ DFFHSWDQFH RI DXWKRULWDULDQ KLHUDUFKLHV DQG IRUPDO UXOHV WHQGV WR VRFLDOL]H LWV FKLOGUHQ E\ LPSRVLQJ PXOWLWXGHV RI UXOHV RQ WKHP LQ D KLJKO\ DXWRFUDWLF IDVKLRQ %XUHDXFUDWLF DXWKRULWDULDQLVP SHQHWUDWHV HYHQ WR WKH PRVW HOHPHQWDU\ UHODn WLRQV EHWZHHQ FKLOG DQG SDUHQW 7KH DXWKRULWDULDQ VWDWH VWUXFWXUHV DUH WKXV XQGHUVWRRG DQG XVXDOO\ PDLQWDLQHG E\ WKH FKLOGUHQ ZKHQ WKH\ JURZ XS 1R QDWLYH HWKQLF JURXS RSHUDWHV LQ WKLV ZD\ &KLOGUHQ DUH VRFLDOL]HG WR EH SDUW RI D VPDOOVFDOH VRFLDO V\VWHP 7KLV PHDQV WKDW WKH\ PXVW EH H[WUHPHO\ IOH[LEOH LQ WKHLU GHDOLQJV ZLWK RWKHUV &RQIURQWDWLRQV DUH GLVFRXUDJHG ,Q DOO DJH JURXSV WKHUH LV D FRQFHUWHG DWWHPSW WR GLVFRXUDJH RSHQ FRQIOLFW :KHQ LW EUHDNV RXW DPRQJ DGXOWV WKH UHVXOW LV XVXDOO\ WKH HPLJUDWLRQ RI WKH KRXVHKROG ZLWK WKH OHDVW NLQVPHQ RU DW OHDVW D FKDQJH RI UHVLGHQFH ZLWKLQ WKH FRPn PXQLW\ 7KH HOLPLQDWLRQ RI WKH SRVW RI FXUDFD DQG LWV UHSODFHPHQW E\ \RXQJ FRPPXQLW\ SROLWLFDO DXWKRULWLHV KDV PDGH LW HYHQ PRUH OLNHO\ WKDW PLJUDWLRQ ZLOO EH WKH UHVXOW RI RSHQ FRQIOLFW VLQFH WKH \RXQJ DXWKRULWLHV KDYH QRW WKH PRUDO DXWKRULW\ WR UHVROYH GLVSXWHV

PAGE 289

0DQ\ RI WKH EHKDYLRUV RI WKH &RFDPLOOD REMHFWHG WR E\ WKH ZKLWHPHVWL]R DXWKRULWLHV VWHP IURP WKH QRQLQWUXVLYH SULQFLSOH $ FDVH LQ SRLQW LV EHKDYLRU WKDW ZKLWHPHVWL]RV IUHTXHQWO\ VHH DV FKLOG QHJOHFW 7LSLVKTXLQR SDUHQWV GR QRW RIWHQ RYHUULGH WKH REMHFWLRQV RI FKLOGUHQ WR WDNLQJ PHGLFLQH HVSHFLDOO\ ORQJ VHULHV RI LQMHFWLRQV IRU WXEHUn FXORVLV 7KXV PHGLFLQHV DUH QRW DOZD\V JLYHQ WR WKH FKLOGUHQ DQG LQ VRPH FDVHV WKH SDUHQWV PD\ VHOO PHGLFLQH JLYHQ E\ WKH VWDWH EHFDXVH WKH FKLOG GRHV QRW ZDQW WR WDNH LW ,Q WKH DGXOW VSKHUH QRQLQWUXVLYHQHVV FRQIOLFWV GLUHFWO\ ZLWK WKH VWDWH EXUHDXFUDWLF SURFHGXUHV LQ WKH UHDOP RI SXEOLF IXQGV 0RQH\ LV FROOHFWHG IRU D QXPEHU RI FRPn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fUDLVH PRQH\ WR EX\ ERRNV DQG UHSDLU WKH VFKRRO

PAGE 290

7KH WZR VSRUWV FOXEV UDLVH PRQH\ WR KDYH GDQFHV DQG EX\ HTXLSPHQW 7KH PHGLFDO FRRSHUDWLYH UDLVHV PRQH\ WR EX\ PHGLFLQHV 7KH DFFRXQWLQJ RI WKHVH IXQGV LV YLUWXDOO\ QRQH[LVWHQW DQG LQ PRQWKV WKH UHFRUGV RI WKH ZULWHU VKRZ GLVFUHSDQFLHV RI FORVH WR VROHV :KHUH GLG WKH PRQH\ JR" 0XFK RI LW ZDV ORDQHG WR UHODWLYHV E\ WKH YDULRXV WUHDVXUHUV 2QH PDQ VWRFNHG D VPDOO KRXVHKROG VWRUH ERGHJXLWDf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

PAGE 291

DVVLJQLQJ EODPH SXEOLFO\ DQG RIILFLDOO\ DQG DFWLQJ RQ LW (YHQ ZKHQ DV LQ RQH FDVH FRQVHQVXV KDV EHHQ UHDFKHG WKDW D FHUWDLQ WUHDVXUHU LV PLVVLQJ VHYHUDO WKRXVDQG VROHV LW LV KLJKO\ XQOLNHO\ WKDW KH &RFDPLOOD ZRPHQ GR QRW KDQGOH PRQH\f ZLOO EH SUHVVHG IRU LW 0RVW RI WKH 7LSLVKTXLQRV DUH UHODWHG WR KLP LQ RQH ZD\ RU DQRWKHU DQG GR QRW ZLVK WR RIIHQG $OVR ZKHQ PRQH\ KDV OHIW RQHnV SRFNHW DQG LV LQ D SXEOLF IXQG LW LV FRQVLGHUHG WR EH DOUHDG\ JRQH DQG WKH LQGLYLGXDO LV XQOLNHO\ WR VHH LW DJDLQ HYHQ LI LW GRHV QRW PHOW DZD\ 1RQLQWUXVLYHQHVV FUHDWHV VSHFLDO SUREOHPV IRU DOO VWDWH EXUHDXFUDWLF SURFHGXUHV ZKLFK GHSHQG RQ SXEOLF PHHWLQJV PDMRULW\ UXOH DQG YRWLQJ 7KH &RFDPLOOD PHWKRG RI DFKLHYn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

PAGE 292

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f§VXSSRVHGO\ FRQYLQFLQJ DUJXPHQWV 7KH\ DVVXPH WKDW WKHLU VXJJHVWLRQV ZLOO EH FDUULHG RXW ZKHQ WKH\ IRUFH D YRWH DQG JHW D PDMRULW\ 7KH\ DUH GLVDSSRLQWHG ZKHQ WKH FRPPXQLW\ IDLOV WR IROORZ WKURXJK DQG WKH\ EODPH WKH 7LSLVKTXLQRnV EDFNZDUGQHVV $JDLQ WKH\ IDLO WR UHDOL]H WKDW WKH 7LSLVKTXLQRnV VRFLRSROLWLFDO V\VWHP KDV

PAGE 293

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nV RZQ DLPV LV DQRWKHU ORQJHVWDEOLVKHG SDWWHUQ %HKDYLRUV OLNHO\ WR EH YLHZHG DV ,QGLDQ E\ ZKLWHPHVWL]RV DUH DFWHG RXW RQO\ LQ FRQWH[WV LQ ZKLFK QR ZKLWHPHVWL]R LV OLNHO\ WR EH SUHVn HQW

PAGE 294

7KH VFKRRO V\VWHP LV WKH RQH VWDWH LQVWLWXWLRQ EHn VLGHV WKH LQHIIHFWLYH SROLWLFDO SRVWV LQ WKH FRPPXQLW\f ZKLFK LV DOZD\V ZLWK WKH 7LSLVKTXLQRV DQG LW LV WKH RQO\ RQH WRGD\ ZKLFK UHTXLUHV ZKLWHPHVWL]RV WR EH SUHVHQW FRQn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f WR VHFRQGDU\ VFKRRO 7KH VHWWOHPHQW SDWWHUQ RI WKH HQWLUH ORZHU 8FD\DOL 5LYHU &RFDPD WHUULWRU\f LV VWURQJO\ LQIOXHQFHG E\ WKH VFKRRO V\VWHP 6WRFNV f DV LV WKH VHWWOHPHQW SDWWHUQ RQ WKH ORZHU +XDOODJD 5LYHU ([FHSW IRU UHJLRQDO PDUNHW WRZQV FRPPXQLWLHV WHQG WR EH MXVW ODUJH HQRXJK WR KDYH D SULPDU\ VFKRRO

PAGE 295

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n DWWLWXGHV DQG WKH\ UHVHQW WKH SDWURQL]LQJ PDQQHU ZKLFK WKH WHDFKHUV DGRSW WR PDVN WKHLU WUXH IHHOLQJV )RU LWV SDUW WKH VFKRRO V\VWHP EHOLHYHV WKH HGXFDWLRQDO SUREOHP WR EH RQH RI ODFN RI UHOHYDQFH RI WKH FXUULFXOXP WR UXUDO OLIH 7KH QDWLRQDO VFKRRO V\VWHP KDV E\ PHDQV RI HGXFDWLRQDO UHIRUP WULHG WR HOLPLQDWH DXWRFUDWLF DQG DXWKRULWDULDQ WHDFKLQJ PHWKRGV DQ LPSRVVLEOH WDVN LQ WKH

PAGE 296

FRQWH[W RI DQ DXWKRULWDULDQ VWDWH ,GHDO PRGHOV RI HGXFDn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

PAGE 297

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nV FKDJULQ +H KDG SUHYLRXVO\ LPSUHJQDWHG DQRWKHU XQPDUULHG \RXQJ ZRPDQ LQ WKH VDPH FRPn PXQLW\ DQG KDG DEDQGRQHG DQRWKHU \RXQJ ZRPDQ DQG WKH FKLOG WKH\ KDG SURGXFHG LQ DQRWKHU FRPPXQLW\ 'XULQJ WKH VFKRRO \HDU KH WULHG WR VHGXFH IRXU RI WKH IHPDOH SULPDU\ VFKRRO VWXGHQWV DJH f :KHQ WKHLU SDUHQWV ILQDOO\ REMHFWHG KH WDXQWHG WKHP VD\LQJ WKDW WKH\ FRXOG QRW PDNH WURXEOH

PAGE 298

IRU KLP EHFDXVH KH KDG PRQH\ 2IILFLDO FRPPXQLW\ FRPSODLQWV WR WKH VFKRRO GLVWULFW ZLWK IXOO GRFXPHQWDWLRQ SURGXFHG QRWKLQJ EXW D WUDQVIHU WKH IROORZLQJ \HDU WR DQRWKHU FRPn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n PXQLW\ 7KH RUJDQL]DWLRQ FURVVFXWV EDUULR DQG VDQJUH LQGLVFULPLQDWHO\ ,W LV VXSSRVHG WR IXQFWLRQ GHPRFUDWLFDOO\ E\ PDMRULW\ UXOH 0HHWLQJV RI WKH WZR RUJDQL]DWLRQV WKHUH DUH WZR VFKRROVf LQYDULDEO\ SURGXFH OLVWV RI JRDOV DQG REMHFWLYHV ZKLFK DUH UDUHO\ DFWHG RQ RU DFFRPSOLVKHG

PAGE 299

6XPPDU\ ,Q VXPPDU\ $FKXDO 7LSLVKFD VRFLDO RUJDQL]DWLRQ VKRZV PDQ\ FKDUDFWHULVWLFV ZKLFK LGHQWLI\ LW DV D QDWLYH FRPPXQLW\ $ERYH DOO VRFLDO OLIH LV EDVHG RQ NLQVKLS UHODWLRQV 7KH QHFHVVLWLHV DQG UHODWLRQV RI SURGXFWLRQ ZKLFK JLYH ULVH WR WKH H[WHQGHG IDPLO\ KRXVHKROG DV D SURGXFWLYH XQLW DQG WKH ZRUN UHODWLRQV EHWZHHQ KRXVHKROGV DUH H[SUHVVHG DQG FRRUGLQDWHG E\ WKH NLQVKLS V\VWHP 1HDUO\ DOO RWKHU VRFLDO UHODWLRQV DUH HPEHGGHG LQ LW 7KH DFHSKDn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n WRULFDO SHQHWUDWLRQ RI WKH HJDOLWDULDQ VRFLDO V\VWHP E\ D FDSLWDOLVW HFRQRP\ DV VKRZQ LQ &KDSWHU 9,,,f KDV SUREDEO\ JLYHQ LW WKH IOH[LELOLW\ WR FRH[LVW ZLWK WKH LQFUHDVLQJO\ SHUYDVLYH DXWKRULWDULDQ V\VWHP ZLWKRXW EHLQJ WRWDOO\

PAGE 300

GHVWUR\HG DW OHDVW IRU WKH SUHVHQW 7KH ORQJ KLVWRULF H[SHULHQFH RI WKH &RFDPLOOD ZLWK GRPLQDWLRQ E\ ZKLWH PHVWL]RV KDV DOVR KHOSHG WKHP WR GHDO ZLWK VWDWH LQVWLWXn WLRQV ZLWK D PLQLPXP RI FRQIURQWDWLRQ 7KH\ DSSO\ WKH UXOHV RI WKHLU QRQLQWUXVLYH VRFLDO V\VWHP WR WKHLU GHDOn LQJV ZLWK WKH VWDWH DQG VXFFHHG LQ PHUHO\ EHLQJ WKRXJKW EDFNZDUG DQG UDWKHU GXOO 7KH FODVK RI WKH WZR V\VWHPV LV VHOGRP GUDPDWLF EXW LW LV H[WUHPHO\ SDLQIXO IRU WKH &RFDn PLOOD LQ $FKXDO 7LSLVKFD DQG RWKHU QDWLYH FRPPXQLWLHV DQG LW LV HVSHFLDOO\ IUXVWUDWLQJ IRU WKH VWDWH RIILFLDOV ZKR RQO\ GLPO\ FRPSUHKHQG WKDW WKH\ DUH GHDOLQJ ZLWK DQ XQn IDPLOLDU FXOWXUDO DGDSWDWLRQ

PAGE 301

&+$37(5 ; &2&$0,//$ ,'(17,7< 3$77(516 7+( 1$7,9( $1' 7+( 67$7( 0RVW DQWKURSRORJLVWV ZRXOG DJUHH WKDW LGHRORJLHV KDYH LPSRUWDQW IXQFWLRQV LQ PDNLQJ VHQVH RI WKH SUD[LV RI VRFLDO OLIH ,W LV DW WKH OHYHO RI LGHRORJ\ WKDW YDOXHV DUH H[SUHVVHG DQG LW LV WKH V\VWHP RI YDOXHV ZKLFK DOORZV UDQNLQJ DQG RUGHULQJ RI WKH H[SHULHQWLDO ZRUOG :LWKRXW LGHRORJ\ VHQVRU\ H[SHULHQFH ZRXOG EH RYHUZKHOPLQJO\ FRPn SOLFDWHG ,W LV DOVR DW WKH OHYHO RI LGHRORJ\ WKDW HWKQLF ERXQGDULHV DUH PDLQWDLQHG 7KH PDLQWHQDQFH RI WKHVH ERXQGDULHV DQG WKH VRFLDO SUDFWLFHV ZKLFK ERWK JLYH ULVH WR WKHP DQG H[SUHVV WKHP LV WKH VXEMHFW RI WKLV FKDSWHU 7KH &RFDPLOOD KDYH OHDUQHG WKH DUW RI SURWHFWLYH LGHRORJLFDO FRORULQJ 7KH\ KDYH OHDUQHG LW ZHOO 7KH YDULRXV OHYHOV RI VRFLDO LGHQWLW\ ZKLFK WKHVH ,QGLDQ SHDVn DQWV KDYH GHYHORSHG FDQ HDFK EH FDOOHG IRUWK XQGHU DSSURn SULDWH FLUFXPVWDQFHV ,W LV WKHLU UHODWLRQVKLS WR WKH ODUJHU 3HUXYLDQ VWDWH VRFLHW\ DQG WKHLU VLPXOWDQHRXV LGHQWLILFDWLRQ DV FLWL]HQV RI WKH QDWLRQ QDWLYH ,QGLDQV DQG PHPEHUV RI D UHJLRQDO VRFLDO FODVV ZKLFK PDNH WKHLU

PAGE 302

LGHQWLW\ VXFK D FRPSOH[ DIIDLU /HVV DFFXOWXUDWHG ,QGLDQV LQ D WULEDO VWDWH PD\ VHOILGHQWLI\ RQO\ DV PHPn EHUV RI D YLOODJH RU OLQHDJH :KLWHPHVWL]RV LGHQWLI\ DV 3HUXYLDQV DQG DV PHPEHUV RI D VRFLDO FODVV 2QO\ WKH FLYLOL]HG RU &KULVWLDQ ,QGLDQV WKH FKRODGD LQ WKH ORZn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

PAGE 303

D VSRUW DQG WKH\ VSHQG D JUHDW GHDO RI WLPH SOD\LQJ RU ZDWFKLQJ LW 7KH DFWLYLW\ KDV PDQ\ RWKHU HFRQRPLF DQG VRFLDO IXQFWLRQV EXW LW KDV DQ LGHRORJLFDO IXQFWLRQ DV ZHOO 7KH 7LSLVKTXLQRV E\ LGHQWLI\LQJ ZLWK WKH QDWLRQDO VSRUW DUH PDNLQJ D VWDWHPHQW DERXW EHORQJLQJ ,Q D VLPLODU ZD\ PHQ ZKR KDYH VHUYHG LQ WKH 3HUXYLDQ DUP\ b RI PDOHV RYHU f VWUHVV WKHLU QDWLRQDO LGHQWLW\ DW FHUWDLQ VSHFLILF WLPHV HVSHFLDOO\ DW RIILFLDO 3HUXYLDQ KROLGD\V VXFK DV 'LD GH OD 3DWULD 6FKRRO FKLOGUHQ DUH WUDLQHG WR PDUFK DQG WKH PHQ VWDQG DURXQG DQG JLYH WKHP DGYLFH UHOLYLQJ WKHLU RZQ PLOLWDU\ OHVVRQV ,W LV RQO\ DW WKLV SDUWLFXODU FHOHEUDWLRQ ZKHUH JDPHV RI LQGLYLGXDO FRPn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

PAGE 304

QDWLYHV 7KH\ DUH FLWL]HQV 0RVW KDYH WKHLU SDSHUV DQG WKH ODZV UHJDUG WKHP DV DQ\ RWKHU $ QDWLYH LV RQH ZKR NQRZV QRWKLQJ ZKR KDV WR KDYH SDWURQV :H VHH WKHP HYHU\ GD\ DW 6,1$026 DVNLQJ IRU KHOS 'LVUHJDUGLQJ HUURUV LQ IDFW RQO\ b RI DGXOW PDOHV DQG QR IHPDOHV KDYH SDSHUVf LI WKH 7LSLVKTXLQRV DUH QRW QDWLYHV EXW UDWKHU FLWL]HQV DUH WKH\ HTXDO WR RWKHU FLWLn ]HQV" 7KH VDPH PDQ TXRWHG DERYH LV H[WUHPHO\ ELWWHU EHn FDXVH KH ZDV IRUFHG RXW RI D UHVSRQVLEOH MRE LQ WKH VFKRRO GLVWULFW EHFDXVH ZDV D FKROR DQG WKH RWKHU WHDFKHUV WKHVH PHVWL]RV GLGQn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

PAGE 305

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n WLQFWLRQV PDGH EHWZHHQ ORZ RU KXPEOH QDWLYHf DQG KLJK RU ZLUDFRFKD VXUQDPHV 6SDQLVK RU RWKHU (XURSHDQf ,W LV YHU\ GLIILFXOW ZKHQ ZH WKH SHRSOH ZLWK ORZ VXUQDPHV WU\ WR PDUU\ ZLWK RWKHU SHRSOH DW WLPHV WKH ER\ RU JLUO EHFRPHV HQDPRUHG ZLWK RWKHU SHRSOH WKH PHVWL]RV RU SHRSOH ZLWK KLJK VXUQDPHV %XW WKH IDPLOLHV GR QRW OLNH WKHLU FKLOGUHQ PDUU\LQJ ZLWK FKRORV 7LSLVKFD PDQ LQ XQSXEOLVKHG ILHOG QRWHVf 7KHUH DUH PDQ\ QRQ&RFDPLOOD EXW QDWLYH VXUQDPHV LQ WKH UHJLRQ DQG WKH VSHDNHU ZKR UHIHUV WR ORZ VXUQDPHV LQFOXGHV WKHP LQ WKLV VWDWHPHQW 7KHUH DUH DOVR D IHZ 6SDQLVK DQG 3RUWXJXHVH VXUQDPHV ZKLFK DUH QRZ &RFDPLOOD

PAGE 306

$Q FHQVXV RI 7LSLVKFD IRU H[DPSOH VKRZHG WKDW D 6DOYDGRU 3HUH\UD D %UD]LOLDQ WUDGHUf OLYHG WKHUH DQG PDUULHG D &RFDPLOOD ZRPDQ +LV GHVFHQGHQWV VWLOO OLYH WKHUH DQG DUH &RFDPLOOD 7KHUH DUH QR QRQ&RFDPLOOD 3HUH\UDV RQ WKH ORZHU +XDOODJD 5LYHU ,Q DQRWKHU FDVH WKH 6SDQLVK%DVTXH QDPH 2ORUWHJXL KDV EHFRPH ODUJHO\ LGHQWLILHG DV &RFDPLOOD ,Q WKLV FDVH WKH LGHQWLILFDWLRQ LV QRW FRPSOHWH DQG PRVW RI WKH 2ORUWHJXLV ZKR ZHUH IRUPHUO\ UHVLGHQWV RI 7LSLVKFD ZKHQ WKH ZKLWHPHVWL]RV OLYHG WKHUH KDYH PRYHG WR WKHLU RZQ FRPn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

PAGE 307

7KH HFRQRPLF VWDWXV DVVRFLDWHG ZLWK EHLQJ FKROR LQ WKH ORZHU +XDOODJD 5LYHU LV RQH RI EHLQJ SRRU 0DQ\ WLPHV FRQYHUVDWLRQV UHYHDO WKDW WKH 7LSLVKTXLQRV IHHO WKHPVHOYHV WR EH D SDUW RI D JHQHUDOL]HG FODVV RI VHOYDWLF SRRU 3RRU SHRSOH WKH\ VD\ HDW SODQWDLQV PDQLRF DQG ILVK QDWLYH IRRGf 5LFK SHRSOH HDW ULFH EHDQV DQG EHHI ZKLWH PHVWL]R IRRGf 7KH EDQN DFFRUGLQJ WR WKHP GRHV QRW ZDQW WR KHOS SRRU SHRSOH ,W ZLOO ILQDQFH D PD[LPXP RI WZR KHFWDUHV RI FURSV IRU WKH SRRU DQG VHOGRP WKDW PXFK 7KH &RFDPLOOD DV &RFDPLOOD 7KH ,QGLDQf LGHQWLILFDWLRQ RI WKH 7LSLVKTXLQR DV VSHFLn ILFDOO\ &RFDPLOOD LV WKH PRVW VHQVLWLYH RI WKH LGHQWLW\ OD\HUV 7KH ZRUG &RFDPLOOD RU &RFDPD LV UDUHO\ KHDUG H[FHSW LQ WKH FRQWH[W RI WKH ODQJXDJH LH 7KLV GLDOHFW ZH VSHDN LV WKH VSHHFK RI WKH &RFDPLOODf RU LQ WKH FRQn WH[W RU WKH RULJLQ RI VRPH RI WKH ROGHU SHRSOH LH 0\ JUDQGIDWKHU ZDV D &RFDPD IURP WKH 8FD\DOL 5LYHUf 1HYHUWKHOHVV WKH LGHQWLW\ LV VWLOO H[SUHVVHG DV WKH IROORZn LQJ H[FHUSW IURP ILHOG QRWHV VKRZV -RV DVNHG PH DERXW P\ VWXG\ +H ZDV DZDUH WKDW ZDV LQWHUHVWHG LQ WKH &RFDPLOOD :KHQ ZH ZHUH WDONLQJ DERXW WKH RULJLQ RU QDPHV VXFK DV 0DVKLQJDVKL LQ (VSHUDQ]D KH VDLG
PAGE 308

LV D WULEH MXVW DV WKH &RFDQD DUH 7KHUH DUH &RFDPD DQG OLWWOH &RFDPD 0\ QDPH &XULWLPD IRU H[DPSOH LV QRW &RFDPLOOD EXW UDWKHU &RFDPD :H &XULWLPDV DUH DOO IURP WKH ELJ &RFDPD (IUDLQ DQG )URLODQ DUH ERWK /DPLVWDV EXW WKH\ OLYH KHUH QRZ MXVW OLNH WKH &RFDPLOOD :LOIUHGR KHUH LV UHDOO\ SURSHUO\ VSHDNLQJ D %UD]LOLDQ +LV JUDQGIDWKHU QRWH DFWXDOO\ KLV JUHDWn JUDQGIDWKHUf FDPH DQG OHIW WKHP KHUH JURZn LQJ OLNH D WUHH 3ODQW D VHHG DQG ORRN WRGD\ ZKDW \RX ILQG $ ZKROH WUHH IXOO RI 3HUH\UDV :LOIUHGR VPLOHG EURDGO\ DQG DJUHHG WKDW KLV JUDQGIDWKHU OHIW XV KHUH DV &RFDPLOOD ,Q DQRWKHU FDVH DQ LQIRUPDQW VDLG WKH IROORZLQJ -XDQ VD\V WKDW ZH VKRXOGQnW EH DVKDPHG RI EHLQJ &RFDPLOOD 7KH &RFDPLOOD PDQ LV DV JRRG DV DQ\ PHVWL]R ,W LV MXVW WKDW WKH\ KDYH WKH PRQH\ ,W PXVW QRW EH VXSSRVHG WKDW HYHQ WKRXJK WKHUH LV DQ LGHQWLILFDWLRQ XVXDOO\ LPSOLFLWf DV &RFDPLOOD WKDW WKH &RFDPLOOD WKHUHIRUH LGHQWLI\ DV ,QGLDQV 7KH\ PRVW HPSKDWLFDOO\ GR QRW $ IUHTXHQW GLVWLQFWLRQ LV EHWZHHQ LQGLR DQG &ULVWLDQR 7KH\ RIWHQ LGHQWLI\ WKHPVHOYHV DV &KULVWLDQ DQG WKLV LGHQWLW\ LV LQ HIIHFW DQ LGHQWLW\ DV IXOO\ KXPDQ 7KH &RFDPLOOD ZLOO VD\ RI DQ LQWHOOLJHQW PRQNH\ IRU H[DPSOH WKDW LW LV DOPRVW &KULVWLDQ :KHQ UXPRUV RI WKH SLVKWDNR ZKLFK LV EHOLHYHG WR PHOW ,QGLDQV GRZQ IRU JUHDVH 2OLYHU6PLWK f UHVXUIDFHG DORQJ WKH 0DUDQRQ 5LYHU ZLWK WKH RLO H[SORUDWLRQ RI WKH HDUO\

PAGE 309

V LW ZDV ILQDOO\ DJUHHG E\ VRPH ZKLWHPHVWL]RV DQG E\ &RFDPLOOD WKDW WKH LQGLRV ZHUH RXW RI GDQJHU EHFDXVH WKH JULQJRV ZHUH QRZ PHOWLQJ GRZQ PRQNH\V 7KH PRQNH\V ZHUH FRQVLGHUHG WR EH KLJKHU RQ WKH VFDOH IURP DQLPDO WR KXPDQ WKDQ ZHUH WKH LQGLRV RU WULEXV WULEHVf $V WKH KLVWRU\ RI WKH &RFDPLOOD VKRZHG WKH GLVWLQFWLRQ EHWZHHQ &KULVWLDQ DQG ,QGLDQ LV WKH ROGHVW VRFLDO GLVWLQFWLRQ LQ WKH SRVWFRQTXHVW WURSLFDO IRUHVW 7KH GHSWK RI WKH VHQVLWLYLW\ DERXW WKH QDWLYHQHVV RI WKH &RFDPLOOD RI $FKXDO 7LSLVKFD ZDV EURXJKW KRPH WR WKH ZULWHU ZKHQ RQH RI WKH ZKLWHPHVWL]R VFKRRO WHDFKHUV LQ DQ XQJXDUGHG PRPHQW LQ /DJXQDV VSRNH WR KLV IULHQGV DERXW D JULQJR ZKR KDG FRQTXHUHG D FRPPXQLW\ RI WULEXV ZKHUH KH WKH WHDFKHUf ZDV WHDFKLQJ 7KH ZRUG JRW EDFN WR WKH FRPn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

PAGE 310

HQFRXUDJHG WKH JURZWK RI WKH VFKRROV 7KH 7LSLVKTXLQRV ZHUH IRUFHG WR DWWHQG WKH VFKRROV DQG WKH\ DWWULEXWHG WKHLU HYHQWXDO OLEHUDWLRQ WR WKH OLWHUDF\ EURXJKW E\ WKH VFKRROV 1RZ WKH QHZ VFKRRO WHDFKHU ZDV LPSO\LQJ WKDW WKH\ ZHUH LJQRUDQW DQG LOOLWHUDWH VXVFHSWLEOH WR HDV\ GRPLQDWLRQ )RU WKHP LW ZDV DSSDUHQW WKDW DQ LPSRUWDQW GLIIHUHQFH EHn WZHHQ D WULEX DQG WKHPVHOYHV ZDV WKH UHODWLYH HDVH RI GRPLQDWLRQ RI WKH WULEXV %XW WKH\ KDG GULYHQ WKH ODVW SDWURQ DZD\ 7KH\ ZHUH SURXG RI LW DQG ULJKWO\ VR 7KH\ KDG WKH\ VDLG PLQGV RI WKHLU RZQ DQG LI WKH\ FKRVH WR SHUPLW WKH ZULWHU WR OLYH ZLWK WKHP LW ZDV WKHLU RZQ GHn FLVLRQ IUHHO\ PDGH &RPPXQLW\ ,GHQWLILFDWLRQ $Q LGHQWLILFDWLRQ ZKLFK SHUPLWV WKHP WR E\SDVV WHUPLQRORJLFDO GLVWLQFWLRQV EDVHG RQ FODVV HWKQLF JURXS DQG UDFH LV WKH LGHQWLILFDWLRQ DV FRPPXQLW\ PHPEHUV 7LSLVKTXLQRV ,W LV SHUKDSV WKH VWLJPD DWWDFKHG WR ,QGLDQ LGHQWLW\ ZKLFK PDNHV WKLV LGHQWLW\ RQH ZKLFK LV VR IUHn TXHQWO\ H[SUHVVHG LQ GDLO\ OLIH DQG LQ VRQJ ,Q WKH ZDWHUV RI $QGDKXD\ODV $OPRVW $OPRVW ZDV ORVW VDYHG P\VHOI LQ WKH DUPV RI WKDW ORYHO\ OLWWOH 7LSLVKTXLQD

PAGE 311

2Q KHDULQJ PH VLQJ VKH VDQJ $W VHHLQJ PH FU\ VKH FULHG 7KDW ORYHO\ OLWWOH 7LSLVKTXLQD KDV QR QHHG WR HVFDSH IURP P\ DUPV 7KH FRPPXQLW\ DV D VRFLDO XQLW LV HDVLO\ FRQFHSWXDOL]HG VLQFH LW LV DOVR D JHRJUDSKLF XQLW 7KH PRVW IUHTXHQW IRUPDO VRFFHU JDPH H[FOXGLQJ WKH LQIRUPDO JURXSV ZKLFK VSULQJ XS QHDUO\ HYHU\ GD\ LQ WKH VXPPHU LV ZLWK RWKHU FRPPXQLWLHV $W VXFK VRFFHU JDPHV PDQ\ RI WKH FRQWUDn GLFWLRQV RI UDFH VRFLDO FODVV DQG LQWHUYLOODJH ULYDOU\ DUH WHPSRUDULO\ UHVROYHG DV SDWURQV SRRU ZKLWHPHVWL]RV DQG DSHOOLGRV KXPLOGHV KXPEOH VXUQDPHVf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

PAGE 312

LQ WKH SDVW RQH RU PRUH VKDPDQV LQ HDFK FRPPXQLW\ 'XULQJ WKH EDUEDVFR ERRP $FKXDO 7LSLVKFD KDG DW OHDVW VL[ VKDPDQV RQH IURP HDFK PDMRU VDQJUH (LWKHU PHQ RU ZRPHQ FDQ EH VKDPDQV EXW ZRPHQ VHOGRP HQWHU WKH ILHOG 0DQ\ VKDPDQV KDYH D SDUHQW ZKR ZDV D VKDPDQ 6LQFH VKDPDQV IUHTXHQWO\ XVH WKH VSLULWV RI GHDG VKDPDQV WR KHOS FXUH WKH VKDPDQLVWLF FXOW WHQGV WR KDYH WKH FKDUDFWHU RI DQ DQFHVWRU FXOW DW WLPHV SURYLGLQJ FRQWLQXLW\ ZLWK WKH SDVW 7KH TXLQWHVVHQWLDO VKDPDQLVWLF WDOHQW LV WR LQFRUn SRUDWH WR GHYHORS WKH DELOLW\ WR DOORZ WKH ERG\ WR EH WDNHQ RYHU E\ RWKHU VSLULWV HLWKHU KXPDQ RU QRQKXPDQ 7KH KXPDQ VSLULWV ZLOO QHDUO\ DOZD\V EH GHDG VKDPDQV XVXDOO\ LQ WKH VKDPDQnV RZQ VDQJUH 1RQKXPDQ VSLULWV FDQ EH HLWKHU KXPDQOLNH GHPRQV \DFXUXQD RU RQH RI VHYHUDO IRUHVW GHPRQVf RU PD\ EH WKH VSLULWV RI SODQWV RU DQLPDOV LQ WKH DQLPLVWLF SDQWKHRQ :KHQ WKH ERG\ LV LQn FRUSRUDWHG WKH VKDPDQnV RZQ VSLULW GHSDUWV WKH ERG\ DQG FRQWURO LV ORVW 7KH VKDPDQnV VSLULW UHTXLUHV DW VXFK WLPHV DGGLWLRQDO VSLULWV DV JXDUGLDQV 7KH DELOLW\ RI WKH &RFDPLOOD VKDPDQ LV GLUHFWO\ DVVHVVHG E\ WKH QXPEHU RI FXULQJ VRQJV LFDURVf KH RU VKH NQRZV KH LFDURV RI WKH &RFDPLOOD DUH WUDGLWLRQDO 7KHVH VRQJV VKRXOG LGHDOO\ EH

PAGE 313

VXQJ LQ WKH &RFDPD ODQJXDJH $ VKDPDQ ZKR KDG QRW WKH PDVWHU\ RI WKH ODQJXDJH FDQQRW EH D VWURQJ &RFDPLOOD VKDPDQ DOWKRXJK FOLHQWHOH PD\ EH IRXQG DPRQJ ZKLWH PHVWL]RV RU PRUH DVVLPLODWHG ,QGLDQV 7KH YRLFHV RI WKH GHSDUWHG VKDPDQV DOZD\V VSHDN LQ WKH &RFDPD ODQJXDJH 6KDPDQLVP LV VWURQJ DOO RYHU WKH UHJLRQ QRW VLPSO\ DPRQJ WKH &RFDPLOOD DQG LQ ODUJH WRZQV KDV UHDFKHG WKH VWDJH RI EHFRPLQJ UDWKHU FKLF 6HVVLRQV LQ XUEDQ DUHDV DUH IUHTXHQWO\ DWWHQGHG E\ JRYHUQPHQW RIILFLDOV VRFLDO VFLHQn WLVWV DQG DQ\RQH HOVH ZKR LV LQWHUHVWHG 6HFXODUL]DWLRQ RI WKH FXULQJ ULWXDO D KDOOXFLQRJHQLF ULWXDO LQ PRVW FDVHV LQYROYLQJ WKH XVH RI EDQLVWHULRSVLV FDDSL DQGRU GDWXUD VSHFLHVf KDV SURFHHGHG WR WKH SRLQW WKDW WKH GUXJ LV DFWXDOO\ VROG WR WKH SDUWLFLSDQWV 6KDPDQV DUH IUHTXHQWO\ VHOIFDOOHG DQG VHOIWDXJKW ,FDURV DUH SHUVRQDO DQG LQGLYLGXDO UDWKHU WKDQ WUDGLWLRQDO 'RENLQ GH 5LRV f 7KH ULWXDO RI FXULQJ LQ $FKXDO 7LSLVKFD RQ WKH RWKHU KDQG KDV WKH FKDUDFWHU RI D FRPPXQDO FXOW )HHV DUH FKDUJHG WR VLFN SHUVRQV ZKR ZLVK WR EH FXUHG EXW VHVVLRQV DUH RIWHQ DWWHQGHG E\ FRPPXQLW\ PHPEHUV ZKR VLPSO\ ZLVK WKH PHQWDOO\ DQG SK\VLFDOO\ FOHDQVLQJ HIIHFW RI WKH KDOOXFLQRJHQ ,W LV ORFDOO\ FDOOHG LQ 6SDQLVK OD SXUJD WKH SXUJDWLYH $IWHU D VHVVLRQ ZKLOH VLFN SHUVRQV VOHHS

PAGE 314

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f 7KH H[FOXVLYH VKDPDQLVWLF VSKHUH VHHPV WR JLYH WKH &RFDPLOOD LQ $FKXDO 7LSLVKFD DQ DUHD RI FXOWXUDO EHKDYLRU LQ ZKLFK WKH\ FDQ DFW RXW WKHLU LGHQWLW\ DV &RFDPLOOD 7KH ORQJ IDPLOLDULW\ RI WKH &RFDPLOOD ZLWK WKH UHDOLWLHV RI ZKLWHPHVWL]R&RFDPLOOD UHODWLRQV FUHDWHV WKH VLWXDWLRQ &RFDPLOOD LGHQWLW\ LV VWLJPDWL]HG ZKLOH &RFDPLOOD VRFLHW\ SHUVLVWV SDUWO\ EHn FDXVH RI GLVFULPLQDWLRQ 7KH VRFLHW\ H[SUHVVHV LWV RZQ LGHQWLW\ LQ ULWXDOV ZKLFK WHQG WR EH H[FOXVLYH )ULFWLRQ ZLWKLQ WKH UHJLRQDO VWUDWLILFDWLRQ V\VWHP LV PLQLPL]HG E\

PAGE 315

WKLV VHDOLQJRII RI DQ XQSRSXODU LGHQWLW\ DQG WKH UHJLRQDO DQG QDWLRQDO HFRQRPLF V\VWHP LQ ZKLFK WKH &RFDPLOOD SDUWLFLn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n GD\V DQG FHOHEUDWLRQV ZKLFK KDV EHHQ H[WUHPHO\ SHUVLVWHQW ,W LV FOHDU IURP PRGHUQ &RFDPLOOD ORUH WKDW WKH LPSULQW RI WKH ILHVWD V\VWHP LQ &RFDPLOOD FXOWXUH ZDV ERWK HDUO\ DQG SURIRXQG $FFRUGLQJ WR OLYLQJ 7LSLVKTXLQRV WKH PHDVXUH PHQX RI WLPH GXULQJ WKH DQQXDO F\FOH ZDV LQ PRQWKV YDWVL PHDQLQJ PRRQ WKH RULJLQDO F\FOH ZDV XQGRXEWHGO\ OXQDU PRQWKVf DQG WKH PRQWKV KDG WKH QDPHV RI WKH &DWKROLF ILHVWDV 7DEOH VKRZV D SDUWLDO UHFRQVWUXFWLRQ RI WKH

PAGE 316

7DEOH 3DUWLDO 5HFRQVWUXFWLRQ RI WKH $QQXDO &DOHQGDU 0RQWK &RFDPLOOD6SDQLVK (QJOLVK -DQXDU\ 5H\HV \DWVL 7KUHH .LQJV PRQWK )HEUXDU\ 0LW£Q \DWVL &DUQLYDO PRQWK 0DUFK r" $SULO 3DVFXD \DWVL (DVWHU PRQWK 0D\ &RUSXV &ULVWL \DWVL %RG\ RI &KULVW PRQWK -XQH 6DQ -XDQ \DWVL 6DLQW -RKQ PRQWK -XO\ 9LUJLQ GHO &DUPHQ \DWVL 9LUJLQ RI &DUPHQ PRQWK $XJXVW 6DQWD 5RVD \DWVL 6DLQW 5RVH RI /LPD PRQWK 6HSWHPEHU 9HUDQR \DWVL 6XPPHU PRQWK WLPH WR FOHDU DQG EXUQ ILHOGV 2FWREHU DQG 1RYHPEHU &KDPXUD \DWVL 'HDG PRQWKV IRU 'D\ RI WKH 'HDGf 'HFHPEHU 1DYLGDG \DWVL &KULVWPDV PRQWK

PAGE 317

F\FOH ,Q WKLV UHFRQVWUXFWLRQ WKH \DWVL UHIHU WR RXU RZQ FDOHQGDU PRQWKV UDWKHU WKDQ WR WKH RULJLQDO OXQDU PRQWKV $SSHQGL[ 9 GHVFULEHV WKH PDMRU IHVWLYDOV DV WKH\ ZHUH SUDFWLFHG D JHQHUDWLRQ DJR 7KH SUHVHQW IHVWLYDOV KDYH ORVW PXFK RI WKHLU KLVWRULFDO FKDUDFWHU 7KH PRVW LPSRUWDQW IHVWLYDOV WRGD\ DUH 'D\ RI WKH 'HDG &KULVWPDV &DUQLYDO DQG 6DLQW 5RVH RI /LPD 7KUHH .LQJV 6DLQW -RKQnV DQG WKH 9LUJLQ RI &DUPHQ DUH VWLOO FHOHEUDWHG EXW QRW HODERUDWHO\ 7KH FKDQJLQJ RI WKH 9DUD\RV WDNHV SODFH HDFK \HDU DV LQ WKH SDVW 7KH FHOHEUDWLRQ RI (DVWHU LQ +RO\ :HHN KDV GLVDSSHDUHG FRPSOHWHO\ LQ $FKXDO 7LSLVKFD ,WV GLVDSSHDUDQFH FRLQFLGHV ZLWK WKH LQWURGXFWLRQ RI MXWH DV D FDVK FURS 7KH ILUVW PD\RUGRPR PLJUDWHG RQH \HDU ZLWKRXW SDVVLQJ RQ WKH IHVWLYDO RQH UHFHLYHV WKH IHVWLYDO IURP RQHnV SUHGHFHVVRU E\ DFFHSWLQJ SDUW RI WKH IRRG FROOHFWHG IRU WKH FXUUHQW IHVWLYDO WKH SDUW VHW DVLGH IRU WKH QHZ YROXQWHHUV IRU WKH QH[W \HDUnV IHVWLYDOf 7KH FHOHEUDWLRQ RI +RO\ :HHN FRXOG EH UHLQVWDWHG EXW PRVW SHRSOH DUH WRR EXV\ ZDVKLQJ MXWH DW WKDW WLPH RI \HDU WR ERWKHU &RUSXV &ULVWL KDV DOVR GLVn DSSHDUHG LQ $FKXDO 7LSLVKFD DOVR EHFDXVH RI WKH HPLJUDWLRQ RI D PD\RUGRPR ,W LV VWLOO SUDFWLFHG LQ /DJXQDV LQ WKH &RFDPLOOD EDUULR DQG LQ $UDKXDQWH

PAGE 318

7KH FRQWULEXWLRQ PDGH E\ WKH ILHVWD F\FOH WR VRFLDO FRn KHVLRQ DQG LQWHJUDWLRQ LV JUHDW $ ODUJH SDUW RI WKH VHOI LGHQWLILFDWLRQ DV &RFDPLOOD LV LQYROYHG ZLWK LW &RFDPLOOD ZKR KDYH PLJUDWHG IURP 7LSLVKFD WR VHWWOH RQ WKH 0DUDQRQ 5LYHU FRPH EDFN HDFK \HDU WR WKH ORZHU +XDOODJD 5LYHU YDOOH\ IRU WKH 'D\ RI WKH 'HDG DQG VRPHWLPHV IRU &KULVWPDV ,W ZLOO EH UHFDOOHG WKDW /DJXQDV DW VHYHUDO SRLQWV LQ LWV KLVWRU\ EHFDPH D VRUW RI FHUHPRQLDO FHQWHU 3HRSOH GLVn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f JRHV WKURXJK D SHULRG RI GUXQNHQQHVV DQG FHOHn EUDWLRQ ZKLFK LV FDOOHG E\ WKH 4XHFKXD ZRUG LVKSD 0DQ\ \RXQJHU PHQ RQO\ SUDFWLFH D WRNHQ LVKSD QRZ 7KH LVKSD

PAGE 319

GRHV QRW UHTXLUH WKDW WKH IDWKHU LQYROYH RWKHUV LQ KLV FRQGLWLRQ KH FHOHEUDWHV DORQH RU ZLWK D FRPSDGUH 7KH \DFXFKHR ZDWHU RI VDOYDWLRQ LQ 4XHFKXDf LV D QDWLYH EDSWLVP ULWH FORVHO\ UHODWHG WR WKH &DWKROLF EDSWLVP 7KH JRGIDWKHU RI WKH FKLOG LQ WKH ULWXDO VSULQNOHV ZDWHU RYHU WKH KHDG RI WKH FKLOG DIILUPLQJ WKH UHODWLRQ RI FRn SDUHQW ZLWK WKH FKLOGnV SDUHQW 7KLV FXVWRP LV ZLGHO\ GLVWULEXWHG LQ JURXSV LGHQWLILHG KHUH ZLWK WKH FKRODGD ,WV VLJQLILFDQFH LQ WHUPV RI LGHQWLW\ LV WKDW LW LV QRW JHQHUDOO\ SUDFWLFHG E\ ZKLWHPHVWL]RV ,W LV RI FRXUVH DOVR VLJQLILFDQW DV D ULWXDO ZKLFK ELQGV FRSDUHQWV WRJHWKHU IUHTXHQWO\ FRSDUHQWV IURP GLIIHUHQW VRFLDO FODVVHV 7KH ODPSWD WLSLQD 4XHFKXD "f RU KDLUFXWWLQJ FHUHPRQ\ LV DERULJLQDO DQG ZLGHO\ GLVWULEXWHG ,WV VRFLDO IXQFWLRQ LV WR LQFRUSRUDWH WKH &RFDPLOOD PDOH FKLOG LQWR WKH VRFLHW\ ,W LV FDUULHG RXW DW WKH WLPH WKH FKLOG KDV GHYHORSHG KLV YHUEDO DELOLW\ DQG KDV WKHUHE\ EHFRPH IXOO\ KXPDQ )HPDOH FKLOGUHQ GR QRW UHFHLYH D KDLUFXWWLQJ FHUHPRQ\ $OWKRXJK LQ WKH SDVW WKHUH ZDV D OHQJWK\ SXEHUW\ FHUHPRQ\ IRU IHPDOHV DW WKH WLPH RI ILUVW PHQVWUXDWLRQ SUHVHQW FXVWRP GHPDQGV RQO\ WKDW WKH\ LVRODWH WKHPVHOYHV LQ WKHLU KRXVHV IRU D SHULRG RI DERXW D ZHHN

PAGE 320

0DUULDJHV DUH SUHVHQWO\ RI DQ LQIRUPDO NLQG VLQFH WKH FRPPXQLW\ LV ODUJHO\ DEDQGRQHG E\ WKH FKXUFK DQG WKH FLYLO DXWKRULWLHV DUH IDU DZD\ 7KH DFWXDO PDUULDJH GRHV QRW VHUYH WR GLVWLQJXLVK WKH &RFDPLOOD LGHRORJLFDOO\ EXW WKH QHJRWLDn WLRQV EHWZHHQ IDPLOLHV DUH DQ LPSRUWDQW IRUXP IRU H[SUHVVLQJ SDWULORFDO YDOXHV DQG WKH SURSHU &RFDPLOOD UHODWLRQVKLS EHn WZHHQ PDQ DQG ZLIH WKH ZLIH LV VXSSRVHG WR EH VXEPLVVLYH FRRSHUDWLYH DQG HFRQRPLFDOO\ SRZHUOHVV DV ZHOO DV EHLQJ D KDUG ZRUNHUf 'HDWK UHTXLUHV D ZDNH DV LQ PRVW &DWKROLF WUDGLWLRQV ,W LV KLJKO\ VLJQLILFDQW WKDW DW WKH YHORULR DV WKH ZDNH LV FDOOHG PDQ\ WDOHV DUH WROG ZKLFK H[SUHVV &RFDPLOOD EHOLHIV DERXW VSLULWV DQG WKH UHODWLRQ RI WKH GHDG WR WKH OLYLQJ 7KH SUHVHQFH RI GHDWK OLWHUDOO\ LQ WKH KRXVH PDNHV VXFK OHVVRQV KLJKO\ PHPRUDEOH WR \RXQJ &RFDPLOOD (YHQ DVVLPLODWHG &RFDPLOOD IRQGO\ UHFDOO WKH VDFDGD GHO HQIHUPR DV EHLQJ UDWKHU D VLQH TXD QRQ RI WKHLU &RFDn PLOOD LGHQWLW\ 7KLV ULWXDO LV D ULWH RI UHLQFRUSRUDWLRQ RI WKH JUDYHO\ LOO SHUVRQ LQWR QRUPDO VRFLHW\ ,W LV DOZD\V GRQH IRU SHRSOH UHFRYHULQJ IURP VQDNHELWH DQG QRZ DQG DJDLQ IRU RWKHU LOOQHVVHV ,Q WKH FDVH RI VQDNHELWH WKH ULWXDO LQYROYHV VWDPSLQJ 6 VKDSHG GHVLJQV ZLWK JHQLSD G\H RQ WKH SHUVRQ UHFRYHULQJ IURP WKH LOOQHVV DV ZHOO DV WKH

PAGE 321

JXHVWV DW WKH SDUW\ 'DQFLQJ DQG GULQNLQJ HQVXHV XQWLO WKH ILUVW URRVWHUV RI WKH YLOODJH FURZ $W WKDW WLPH DOO WKH SDUWLFLSDQWV WURRS WR WKH ODNH IRU D ULWXDO EDWK DQG D ZRRGHQ PRGHO RI D VQDNH LV EHDWHQ WR GHDWK DW ODNHn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

PAGE 322

7KH &RFDPLOOD KDYH D QXPEHU RI LGHQWLW\ OD\HUV ZKLFK DUH DFWHG RXW LQ UROHV LQ DSSURSULDWH FLUFXPVWDQFHV 7KH PRVW LPSRUWDQW FXOWXUDO LQVWLWXWLRQV LQ WHUPV RI PDLQWDLQn LQJ WKHLU LGHQWLW\ DV &RFDPLOOD DUH VKDPDQLVP DQG WKH OLIH F\FOH ULWXDOV 7KH &DWKROLF ILHVWD F\FOH VHUYHV DV WKH PDMRU LQWHJUDWLYH ULWHV PDLQWDLQLQJ WR VRPH GHJUHH WKH HQWLUH HWKQLF JURXS DV D VRFLDO XQLW &RPSOHWH LQWHJUDWLRQ r RI WKH &RFDPLOOD QDWLYH HWKQLF JURXS LV QRZ LPSRVVLEOH EHn FDXVH RI WKH QXPEHUV RI &RFDPLOOD ZKR DUH DWWHPSWLQJ WR DVVLPLODWH LQWR WKH ZKLWHPHVWL]R VRFLHW\ KRZHYHU XQn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nV IXWXUH WKLV FODVV ZLOO LQFUHDVH LQ LPSRUWDQFH

PAGE 323

&+$37(5 ;, $1$/<6,6 $1' &21&/86,216 7KH ILUVW SDUW RI WKLV GLVVHUWDWLRQ ZDV GLUHFWHG WRZDUG WUDFLQJ WKH KLVWRULFDO UHODWLRQVKLSV EHWZHHQ WKH &RFDPLOOD DQG WKH GRPLQDQW DQG GHYHORSLQJ VRFLHW\ ZKLFK EHFDPH WKH QDWLRQVWDWH RI 3HUX 7KH &RFDPLOOD ZHUH RQH RI WKH ILUVW QDWLYH HWKQLF JURXSV LQ WKH 0DLQDV PLVVLRQV WR EH SODFHG LQ WKH PLVVLRQ YLOODJHV UHGXFFLRQHVf \HW WKH\ KDYH EHHQ WKH PRVW SHUVLVWHQW QDWLYH VXUYLYRUV LQ WKH +XDOODJD 5LYHU YDOOH\ 7KHLU KLVWRU\ KDV WKHRUHWLFDO DV ZHOO DV KXPDQ VLJQLILFDQFH )URP WKH SHUVSHFWLYH RI FXOWXUDO PDWHULDOLVP DQ H[DPLQDWLRQ RI WKHLU SDVW FODULILHV VRPH RI WKHVH WKHRUHWLFDO SRLQWV )LUVW VXFK D SHUVSHFWLYH LQVLVWV WKDW GHWHUPLQHG UHODWLRQV RI SURGXFWLRQ JLYH ULVH WR GHWHUPLQHG VRFLDO IRUPV DQG GHWHUPLQHG YDOXHV DQG LGHDOV UDWLRQDOL]LQJ DQG VRPHWLPHV PDVNLQJf VRFLDO UHDOLWLHV ,Q WXUQ WKH VRFLDO IRUPV DQG LGHRORJLHV IHHG EDFN LQWR WKH SURGXFWLYH SURn FHVVHV FKDQJLQJ WKHP DQG EHLQJ FKDQJHG E\ WKHP LQ DQ RQJRLQJ GLDOHFWLFDO SURFHVV ,Q WKDW FRQWH[W LW FDQQRW

PAGE 324

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

PAGE 325

SDUDOOHOV LQ WKH +XDOODJD 9DOOH\ 7KH LQODQG JURXSV HVSHFLDOO\ VDZ WKHLU VXEVLVWHQFH V\VWHPV VKDWWHUHG WKHLU YLOODJHV FRPSOHWHO\ GHVWUR\HG DQG UHRUJDQL]HG $V FXOWXUHV WKH\ QHYHU UHFRYHUHG IURP WKLV EORZ DOWKRXJK ELRORJLFDOO\ WKH\ VWLOO IRUP DQ LPSRUWDQW SDUW RI WKH UHJLRQnV JHQH SRRO $OVR LQ WKLV FRQWH[W LW VKRXOG HPSKDVL]HG WKDW WKH UHFHQW UDSLG FKDQJHV LQ &RFDPLOOD FXOWXUH DUH FRUUHODWHG ZLWK WKH DFWXDO RFFXSDWLRQ RI WKHLU ODQGV DQG FRPPXQLWLHV E\ ZKLWHPHVLW]RV DQG WKH VKLIW IURP XVLQJ WKHP DV SURn YLVLRQLQJ XQLWV IRU ZKLWHPHVWL]R VHFWRUV WR WKHLU XVH DV SHRQV LQ ILHOG ZRUN IRU WKH EDUEDVFR SDWURQV 7R LPSO\ WKDW WKHUH ZHUH QR PDWHULDO REVWDFOHV WR WKH VXUYLYDO RI WKH &RFDPLOOD DW WKH OHYHO RI WKH HVVHQWLDO VXEVLVWHQFH HFRQRP\ LV QRW WR VD\ WKDW WKH\ RU DQ\ RWKHU HWKQLF JURXS LQ VLPLODU FLUFXPVWDQFHV ZLOO VXUYLYH 2EYLRXVO\ RWKHU IDFWRUV HQWHU LQWR WKH SLFWXUH DW WKLV SRLQW $V WKH KLVWRU\ RI WKH &RFDPLOOD VKRZV GLUHFW GRPLQDWLRQ E\ ZKLWHPHVWL]RV ZKR DFWXDOO\ RFFXSLHG &RFDn PLOOD FRPPXQLWLHV VXFK DV $FKXDO 7LSLVKFD DFWHG DV D SRZHUn IXO VROYHQW LQ DFFHOHUDWLQJ FXOWXUH FKDQJH ,Q DOO RI WKH WRZQV DQG YLOODJHV ZKHUH WKH RXWVLGH VRFLHW\ ZDV DEOH WR VKDWWHU WKH LQWHUQDO SROLWLFDO RUGHU RI QDWLYH FRPPXQLWLHV WKH ,QGLDQV GLVDSSHDUHG DV HWKQLF JURXSV &OHDUO\ WKLV

PAGE 326

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f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

PAGE 327

7KH HWKQLF LGHQWLW\ RI WKH &RFDPLOOD VHHPV WR EH FKDQJLQJ IDLUO\ UDSLGO\ LQ UHFHQW \HDUV 7KHVH FKDQJHV DUH GLUHFWO\ UHODWHG WR WKHLU SHUFHSWLRQ WKDW EHLQJ QDWLYHV PD\ QRW EH DQ HIIHFWLYH ZD\ WR HQMR\ WKH EHQHILWV ZKLFK WKH\ SHUFHLYH WKDW ZKLWHPHVWL]RV HQMR\ 7KLV SHUFHSWLRQ ZDV LQ WXUQ JHQHUDWHG E\ WZR PDLQ PDWHULDO IDFWRUV 7KH ILUVW ZDV ORQJWHUP GRZQZDUG PRELOLW\ RQ WKH SDUW RI ZKLWH PHVWL]RV DIWHU WKH UXEEHU ERRP DQG DIWHU WKH EDUEDVFR ERRP 7KLV ZDV JHQHUDWHG LQ WXUQ E\ WUHQGV LQ WKH JUDGXDO GHYHORSPHQW RI WKH UHJLRQ WUHQGV ZKLFK HQFRXUDJH D ERRP DQG EXVW HFRQRP\ HYHQ WRGD\ 7KH GRZQZDUG PRELOLW\ WHQGHG WR GHVWUR\ WKH RFFXSDWLRQDO FRPSOHPHQWDULW\ ZKLFK KDG FKDUDFWHUL]HG WKH WZR VHFWRUV )RU WKH ILUVW WLPH LQ WKHLU KLVWRU\ WKH &RFDPLOOD DQG ZKLWHPHVWL]RV ZHUH FRPSHWLQJ DW WKH VXEVLVWHQFH OHYHO IRU WKH VDPH ILVKLQJ JURXQGV WKH VDPH ODQGV 8S WR WKLV WLPH WKH ZKLWHPHVWL]RV WHQGHG WR KDYH TXLWH GLIIHUHQW HFRQRPLF UROHV WKDQ WKH &RFDPLOOD GLG D FRPSOHPHQWDU\ VLWXDWLRQ ZKLFK GLVFRXUDJHG RSHQ FRQIOLFW :LWK GRZQZDUG PRELOLW\ KRZHYHU WKH &RFDPLOOD EHJDQ OLWWOH E\ OLWWOH WR EH FURZGHG IRU ODQG FORVH WR WKH FRPPXQLWLHV DQG HVSHFLDOO\ ILVKLQJ ULJKWV WR WKH ODNHV :LWKRXW ODQG ULJKWV WKH &RFDPLOOD EHJDQ WR VHH WKDW WKHLU DQFLHQW VXEVLVWHQFH SDWWHUQV FRXOG QR ORQJHU JXDUDQWHH WKHP D JRRG

PAGE 328

OLIH 7KH LQWHUHWKQLF IULFWLRQV ZKLFK ZHUH JHQHUDWHG E\ ZKLWHPHVWL]R&RFDPLOOD FRPSHWLWLRQ ZLWKLQ D VLQJOH QLFKH FUHDWHG LQ WXUQ WKH VWLJPDWL]HG FKROR LGHQWLILFDWLRQ DQG LQFUHDVHG GLVVDWLVIDFWLRQ 7KH VHFRQG IDFWRU ZDV WKH LQWURGXFWLRQ RI WKH 3HUXYLDQ VFKRRO V\VWHP LQ &RFDPLOOD FRPPXQLWLHV 7KH VFKRROV KHOSHG WR VWLJPDWL]H &RFDPLOOD LGHQWLW\ HYHQ DV WKH\ HGXFDWHG WKH &RFDPLOOD FKLOGUHQ WR RWKHU FXOWXUDO SDWWHUQV DQG SURYLGHG WKH OLWHUDF\ ZKLFK ZDV RQH RI WKH NH\V RU VR WKH &RFDPLOOD VXSSRVHGf WR WKH IXOILOOPHQW RI QHZ GHVLUHV 0HVWL]R PRGHOV ZHUH FRQVWDQWO\ SDUDGHG EHIRUH WKHP 7RGD\n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n WLRQ RI WKH &RFDPLOOD IURP QRQ&KULVWLDQ ,QGLDQV WKHLU GHJUHH

PAGE 329

RI DFFXOWXUDWLRQ DQG WKH IDLOXUH RI /RUHWR VRFLHW\ WR DVVLPLODWH WKHP 7KLV VLWXDWLRQ KDV FUHDWHG D VRFLDO FODVV RI FKRORV VHOYDWLF ,QGLDQ SHDVDQWV LQ D QDUURZ HFRQRPLF LH VXEVLVWHQFH RULHQWHG IDUPHUV ZKR VHOO VXUSOXVHV WR XUEDQ PDUNHWVf D VRFLDO FODVV ZKLFK RQ WKH ORZHU +XDOODJD 5LYHU LV ODUJHO\ IRUPHG E\ WKH &RFDPLOOD 7KH FXULRXV SDUDGR[ RI WKHLU SRVLWLRQ LV WKDW ZKLOH IRUPLQJ HQFODYHV RI QDWLYH FRPPXQLWLHV MXGJHG E\ WKH FULWHULD RI VRFLRn SROLWLFDO RUJDQL]DWLRQ DQG HFRQRP\ WKH\ DUH IXOO\ LQWHn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

PAGE 330

%DQN H[HPSOLI\ H[HPSOLI\ WKH FDVH 7KH EDQN KDV QR UHVSRQVLELOLW\ IRU HFRQRPLF SODQQLQJ /RFDO FRPPXQLWLHV VXIIHU IRU WKH ODFN RI FRRUGLQDWLRQ EHWZHHQ EDQNV ZKLFK VWLPXODWH SURGXFWLRQ DQG EDQNV ZKLFK GHDO ZLWK SURGXFW WUDQVIRUPDWLRQ 0XFK OHVV GRHV WKH EDQN KDYH WKH ZHOIDUH RI WKH ORFDO SRSXODFH DV D ZKROH LQ PLQG 7KH VWLPXODn WLRQ RI ILEUH SURGXFWLRQ DW WKH H[SHQVH RI IRRG SURGXFWLRQ LQ WKH UHJLRQ VKRZV D FRPSOHWH ODFN RI XQGHUVWDQGLQJ RI WKH KLVWRULFDO ERRP DQG EXVW F\FOHV RI WKH VLQJOH FURS HFRQRP\ DQG D JURVV IDLOXUH WR DSSUHFLDWH WKH VRFLDO DQG HFRQRPLF EHQHILWV RI EDODQFHG GHYHORSPHQW $W WKH KHDUW RI DOO RI WKLV WR EH VXUH LV /RUHWRnV VWDWXV DV DQ LQWHUQDO FRORQ\ RI 3HUX 7KH KDSKD]DUG DQG LQ KXPDQ WHUPV FDUHOHVV SODQQLQJ RI /RUHWRnV HFRQRPLF GHYHORSPHQW LV VWDUNO\ GUDPDWL]HG E\ WKH JRYHUQPHQWnV IDLOXUH WR SURWHFW WKH IRRG VXSSO\ RI WKH &RFDPLOOD DQG RWKHU QDWLYHV 7KH HYHQWXDO UHVXOW PD\ EH VWDUYLQJ SHRSOH LQWR PLJUDWLRQ WR WKH FLWLHV 7KH VHFRQG EDVLF SUREOHP LV WKDW WKH QDWXUH RI WKH &RFDPLOOD DGDSWDWLRQ WR WKH SK\VLFDO DQG VRFLRSROLWLFDO HQYLURQPHQW KDV SURGXFHG SROLWLFDOO\ DFHSKDORXV HJDOLWDULDQ FRPPXQLWLHV 7KHVH FRPPXQLWLHV DUH DW DOO SRLQWV GLDPHWULn FDOO\ RSSRVHG WR WKH DXWKRULWDULDQ KLHUDUFKLFDO EXUHDXn FUDFLHV RI WKH VWDWH 7KH HJDOLWDULDQ NLQVKLSEDVHG

PAGE 331

HFRQRPLF DQG VRFLDO RUJDQL]DWLRQ RI PRVW RI WKH &RFDPLOOD FRPPXQLWLHV FDQ QHYHU IXQFWLRQ VPRRWKO\ LQ WKH FXUUHQW VRFLR SROLWLFDO DQG HFRQRPLF HQYLURQPHQW 8QWLO UHFHQWO\ LW ZDV QRW UHTXLUHG WR FKDQJH DV ORQJ DV LQGLYLGXDOV ZRUNHG IRU DQG SDLG WULEXWH WR WKH PHPEHUV RI WKH GRPLQDQW VRFLHW\ 1RZ LW LV EHLQJ DVNHG WR FKDQJH LQWR D VRFLDO IRUP ZKLFK LV LWV RSSRVLWHf§ZLWKRXW EHLQJ JLYHQ WKH PDWHULDO EDVLV IRU WKDW FKDQJH &RQVHTXHQWO\ WKHUH LV PXFK IULFWLRQ ZLWK VFKRRO RIILFLDOV EDQN RIILFLDOV DQG SROLWLFDO DQG PLOLWDU\ RIILn FLDOV WR VD\ QRWKLQJ RI IUXVWUDWLRQ DQG DQJHU RQ WKH SDUW RI WKH &RFDPLOOD UXUDO FRPPXQLW\ PHPEHUV 7KH )XWXUH RI WKH &RFDPLOOD 7KH RQO\ ZD\ VSHDNLQJ RI WKH IXWXUH FDQ PDNH VHQVH LV WR SURMHFW WKH WUDMHFWRU\ RI FXUUHQW VRFLDO DQG HFRQRPLF UHDOLWLHV 7KH UHFHQW KLVWRU\ RI WKH &RFDPLOOD KDV EHHQ RQH RI UDSLG FXOWXUH FKDQJH DQG DFFRPSDQ\LQJ VRFLDO IUDJn PHQWDWLRQ DQG DQRPLH 8UEDQ PLJUDWLRQ DQG HVFDODWLQJ VRFLDO SUREOHPV DUH WKH UHVXOW 8UEDQ PLJUDWLRQ DSSHDUV WR EH RQ WKH LQFUHDVH DOWKRXJK WKH SRSXODWLRQV RI WKH EDUULRV RI WKH VHOYDWLF FLWLHV PD\ EH PRUH IOXLG LQ WHUPV RI WKH DELOLW\ WR UHHQWHU WKH IDUPLQJ OLIH WKDQ FRDVWDO PLJUDQWV ODJXQDV IRU H[DPSOH ZKLFK JUHZ DW DQ DQQXDO UDWH RI RYHU b IURP

PAGE 332

WR DFWXDOO\ VKUDQN LQ VL]H DV WKH RLO FRPSDQLHV OHIW DQG PDQ\ IRUPHU ZDJH ODERUHUV PRYHG EDFN LQWR WKH UXUDO ]RQHV WR PDNH ILHOGV :KLOH D b JURZWK PD\ QRW EH LQn WROHUDEOH WR D FLW\ ZLWK VRPH VRUW RI LQGXVWULDO EDVH FRQn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n WLRQ DQG HYHQWXDO SURWHLQ VWDUYDWLRQ WR PLJUDWH WR WKH XUEDQ DUHDV 6XFK PLJUDWLRQ ZRXOG DFFHOHUDWH WKH WUHQG WRZDUG PDNLQJ WKHP XQGHUSDLG ZDJH ODERUHUV DQG ILVK VXSn SOLHUV WR XUEDQ PDUNHWV 7KLV SURMHFWLRQ GRHV QRW LPSO\ WKHLU HYHQWXDO DVVLPLODWLRQ LQWR ZKLWHPHVWL]R FXOWXUH EXW RQO\ WKH GHVWUXFWLRQ RI WKHLU PHDQV RI SURYLGLQJ D YLDEOH DOWHUQDWLYH WR WKDW FXOWXUH 2QH FDQ HDVLO\ VHH WKHP LQ WZHQW\ \HDUV FRQFHQWUDWHG LQ WKH QHZ EDUULRV WKH SXHEORV

PAGE 333

MRYHQHV \RXQJ WRZQVf WKH XUEDQ VDWHOOLWHV RI WKH 3HUXYLDQ ORZODQG WURSLFDO FLWLHV VWLOO PDLQWDLQLQJ D VHSDUDWH VRFLHW\ EXW PDWHULDOO\ HYHQ ZRUVH RII WKDQ WKH\ DUH WRGD\ $W OHDVW WRGD\ WKH\ KDYH WKH PHDQV RI SURYLGLQJ WKHLU RZQ VXEVLVWHQFH 7KH PDMRU IDFWRUV ZKLFK FRXOG FKDQJH WKLV UDWKHU GLVPDO SLFWXUH ZRXOG EH WR JLYH WKH UXUDO QDWLYH FRPPXQLWLHV RI WKH &RFDPLOOD ODQG DQG H[FOXVLYH ILVKLQJ ULJKWV LQ WKH DUHDV LQ ZKLFK WKH\ DUH QRZ FRQFHQWUDWHG 7KHVH ULJKWV ZRXOG EH JUDQWHG WR WKHP DV FRPPXQLWLHV DQG FRXOG EH JLYHQ WR WKHP XQGHU ODZ LI WKH ODZ ZHUH FKDQJHG WR LQFOXGH WKH ULJKWV RI QDWLYH FRPPXQLWLHV WR WKH SURWHLQ VRXUFHV WKH\ QHHG IRU VXEVLVWHQFH 8QGHU WKH SUHVHQW ODZV ZDWHU ULJKWV DUH WKH SURSHUW\ RI WKH VWDWH 8QGHU WKH SURSRVHG FKDQJH WKH\ ZRXOG EH JUDQWHG WR QDWLYH FRPPXQLWLHV 7KH JXDUDQWHH RI WKHVH ULJKWV ZRXOG SURYLGH WKH &RFDn PLOOD ZLWK WKH EDVLV IRU HFRQRPLF DQG FXOWXUDO VXUYLYDO $JDLQ WKLV LV QRW WR VDZ WKDW WKH\ ZRXOG VXUYLYH DV D FXOWXUH RQO\ WKDW WKH PDWHULDO EDVHV IRU WKHLU VXUYLYDO ZRXOG EH SUHVHQW $V *RPHVn f VWXG\ RI WKH 7HQHWHKDUD ,QGLDQV RI %UD]LO VKRZHG WKH TXHVWLRQ RI WHUULWRULDO ULJKWV LV SDUDPRXQW LQ WKH VWLPXODWLRQ RI D SUD[LV RI GHIHQVH RQ WKH EDVLV RI HWKQLF LGHQWLW\

PAGE 334

2Q D OHVV JUDQG VFDOH WKHUH DUH D QXPEHU RI PHDVXUHV ZKLFK FDQ DQG VKRXOG EH WDNHQ WR HDVH WKH EXUGHQ ERUQ E\ WKH &RFDPLOOD DV QDWLYH HQFODYHV LQ WKH FODVV VWUXFWXUH 7KH UHFRJQLWLRQ RQ WKH SDUW RI WKH VWDWH WKDW WKH XQDVVLPLn ODWHG QDWLYH HQFODYHV GR LQ IDFW UHSUHVHQW D VRFLDO VWUDWXP LQ /RUHWR ZLWK SDUWLFXODU GLVDGYDQWDJHV YLV £ YLV WKHLU SDUWLFLSDWLRQ LQ WKH HFRQRP\ ZRXOG KHOS (QFRXUDJHn PHQW RI WKHLU VRFLDO IRUPV RI SURGXFWLRQ DQG GLVWULEXWLRQ ZRXOG KHOS 3URJUDPV RI VFKRODUVKLSV IRU HGXFDWLQJ &RFDn PLOOD WHDFKHUV ZRXOG DOVR KHOS &KDQJHV LQ WKH DGPLQLVn WUDWLRQ RI UXUDO FUHGLW WR UHFRJQL]H SUREOHPV RI WLPH DQG GLVWDQFH LQ ULYHU WUDYHO ZRXOG EHQHILW DOO UXUDO /RUHWDQRV $Q DJHQF\ ZKLFK ZRXOG GHYHORS PDUNHWV RQ WKH FRDVW IRU PDQLRF VWDUFK DQG SODQWDLQ IORXU ZRXOG VWLPXODWH KHDOWK\ GHYHORSn PHQW RI WKH UXUDO DJULFXOWXUDO HFRQRP\ E\ SURYLGLQJ DQ RXWOHW IRU FURSV ZKLFK DUH DOVR VWDSOH VXEVLVWHQFH FURSV 7KH IXQGDPHQWDO SUREOHP LV QRW RQH RI HGXFDWLRQ HLWKHU RQ WKH SDUW RI WKH &RFDPLOOD RU RQ WKH SDUW RI WKH JRYHUQn PHQW ,I WKH TXHVWLRQ ZHUH SXW WR WKH LQGLYLGXDO &RFDPLOOD WKH\ FRXOG LQVWDQWO\ JR WR WKH KHDUW RI WKH PDWWHU 7KH PDWHULDO FRQGLWLRQV RI UXUDO &RFDPLOOD OLIH DUH XQVDWLVn IDFWRU\ 7KH\ DUH GLVFULPLQDWHG DJDLQVW VRFLDOO\ DQG HFRQRPLFDOO\ 7KHLU ODQGV DUH WKUHDWHQHG WKHLU ODNHV

PAGE 335

RYHUH[SORLWHG E\ RXWVLGHUV 7KH\ DUH LQ GHEW WR WKH DJUDULDQ EDQN WKH\ SD\ H[KRUELWDQW SULFHV IRU HYHU\WKLQJ WKH\ EX\ DQG WKH\ UHFHLYH ORZ SULFHV IRU HYHU\WKLQJ WKH\ VHOO LQFOXGLQJ WKHLU ODERU (YHQ SULFHV VXSSRUWHG E\ WKH DJUDULDQ EDQN GR QRW EHJLQ WR NHHS XS ZLWK LQIODWLRQ ZKLFK QRZ DSSURDFKHV b HDFK \HDU 7KHVH SUREOHPV UHTXLUH IXQGDn PHQWDO UHRUJDQL]DWLRQ RI WKH /RUHWR HFRQRP\ ZKLFK LQ WXUQ UHVSRQGV WR QDWLRQDO DQG LQWHUQDWLRQDO PDUNHW SUHVVXUHV 8OWLPDWHO\ WKH &RFDPLOOD DUH FRQQHFWHG WR DOO RI XV E\ WKH LQYLVLEOH QHWZRUN RI HFRQRPLF DQG VRFLDO UHODWLRQVKLSV ZKLFK OLQN WKH PRGHUQ ZRUOG 7KHLU VXUYLYDO LQ WKDW ZRUOG PD\ EH RI QR JUHDW FRQVHTXHQFH LQ JOREDO WHUPV ,Q KXPDQ WHUPV KRZHYHU WKHLU VXUYLYDO PD\ EH PRUH WKDQ V\PEROLF :KHQ ZH KDYH OHDUQHG WR SURWHFW WKH ULJKWV RI WKH OHDVW WKH ULJKWV RI DOO PD\ EH OHVV WKUHDWHQHG

PAGE 336

$33(1',&(6

PAGE 337

$33(1',; */266$5< 2) )25(,*1 7(506

PAGE 338

$33(1',; */266$5< 2) )25(,*1 7(506 $EXHODRf 6SDQLVK WHUUD IRU JUDQGSDUHQW ,Q &RFDPLOOD XVDJH WKH WHUP LV DSSOLHG WR WKH SDUHQWV RI SHUVRQV HJR FDOOV WLR RU WLD DV ZHOO DV WKH OLQHDO JUDQGn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n DUFK\ 5HVSRQVLELOLWLHV RI WKH DOJXDFLOHV LQFOXGHG FOHDQLQJ DQG HUUDQGV $OPD 6SDQLVK WHUP IRU VRXO ,Q WKH XVDJH RI WKH PLVVLRQV DQ DOPD ZDV HTXLYDOHQW WR D &KULVWLDQ ,QGLDQ $OWXUD $Q HOHYDWLRQ LQ WKH ORZODQG IRUHVW DUHDV ZKLFK GRHV QRW IORRG IURP WKH ULVH LQ WKH ULYHU GXULQJ IORRG VHDVRQ

PAGE 339

$SHOOLGR DOWREDMR +LJK DQG ORZ VXUQDPHV 7KH &RFDPLOOD XVH WKLV WHUPLQRORJ\ WR UHIHU WR WKH GLVWLQFWLRQ EHWZHHQ QDWLYH RU ,QGLDQ VXUQDPHV DQG 6SDQLVK RU (XURSHDQ VXUQDPHV $UFDEXFH 6SDQLVK ILUHDUP WKH $UTXHEXV $UURED $ XQLW RI YROXPH DQG ZHLJKW PHDVXUH NLORJUDPVf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f %DUEXGR /LWHUDOO\ EHDUGHG LQ 6SDQLVK 7KH 6SDQLVK XVHG WKLV WHUP WR UHIHU WR WKH JURXS RI ,QGLDQV FDOOHG 0D\RUXQD LQ 4XHFKXD VSHDNHUV RI D 3DQRDQ ODQJXDJH 7KH 0D\RUXQD LQ WKH 0DLQDV PLVVLRQV ZHUH ILUVW NQRZQ WR LQKDELW WKH DUHD HDVW RI WKH +XDOODJD 5LYHU DQG VRXWK RI WKH $JXDQR&KDPLFXUR JURXS 7KLV JURXS QR ORQJHU H[LVWV EXW RWKHU 3DQRDQ ,QGLDQV FDOOHG 0D\RUXQD VWLOO LQKDELW ODQGV HDVW RI WKH 8FD\DOL 5LYHU

PAGE 340

%DUUHDO $ ULYHU EHDFK ZKLFK KDV D GHSRVLW RI FOD\ RQ LW %DUUHDOHV DUH VXLWDEOH IRU SODQWLQJ PDQ\ FURSV DPRQJ WKHP EHDQV DQG ULFH %DUULR $ VHFWRU RI D YLOODJH RU WRZQ 7KH EDUULRV LQ WKH ORZODQG PLVVLRQ WRZQV ZHUH HDFK RFFXSLHG E\ GLVWLQFW HWKQLF JURXSV %DUULRV LQ PRGHUQ WRZQV VRPHWLPHV UHWDLQ WKDW FKDUDFWHU EXW LQ &RFDPLOOD WRZQV EDUULRV PD\ UHIOHFW VRFLDO GLYLVLRQV LQ WKH FRPPXQLW\ ZKLFK DUH QRW EDVHG RQ HWKQLFLW\ %HELGD 7KH WHUP LQ WKH FRQWH[W KHUH UHIHUV WR PDQLRF EHHU RU FRUQ EHHU &DELOGR 7KH FRXQFLO RI DXWKRULWLHV LQ WKH PLVVLRQ WRZQV &DERFOR %UD]LOLDQ WHUP IRU WKH VRFLDO FDWHJRU\ RI UXUDO DQG UXVWLF IURQWLHUVPHQ &DFKLEDQJR 0RVTXLWR QHWV PDGH IURP SDOP ILEUH SRXQGHG RXW &DFLTXH $ FKLHI 7KH 6SDQLVK ZHUH XQGHU WKH PLVDSSUHn KHQVLRQ WKDW QDWLYH YLOODJHV KDG FKLHIV LQ WKH 3HUXYLDQ ORZODQGV 7KH\ DSSOLHG WKLV WHUP WR QDWLYH OHDGHUV &DPDULFR /LWHUDOO\ EHG RI ULFKHV 7KH UHIHUHQFH LV WR DQ RIIHULQJ RI IRRG PDGH WR WKH SULHVWV DW FHUWDLQ WLPHV RI WKH \HDU &DPELR $Q H[FKDQJH ,Q &RFDPLOOD XVDJH D FDPELR PD\ EH WKH H[FKDQJH RI D PDUULDJHDEOH ZRPDQ IURP RQH IDPLO\ IRU RQH IURP DQRWKHU IDPLO\ &DPLVHWD 7KH UHIHUHQFH KHUH LV WR WKH ORQJ ORRVH JDUn PHQWV ZRUQ E\ WKH &RFDPD DQG 2PDJXD DW FRQWDFW &DPRWH 6ZHHW 3RWDWR ,SRPRHD %DWDWDVf

PAGE 341

&DPSHVLQR $ SHDVDQW 7KLV WHUP KDV EHHQ VHOHFWHG LQ SRVW 3HUX WR UHIHU WR DOO SHUVRQV ZKR DUH VXEn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f &DUQDYDO 7KH FHOHEUDWLRQ ZKLFK SUHFHGHV /HQW &DVDEH 6SDQLVK WHUP IRU WKH IODW PDQLRF FDNH &DOOHG PHLR LQ WKH &RFDPD ODQJXDJH &DVWLOOR $ ZRRG FRQVWUXFWLRQ LQ WKH ORZODQG PLVVLRQ ILHVWDV ZKLFK ZDV GHFRUDWHG DQG DGRUQHG ZLWK VPDOO JLIWV DQG IRRG 7KH FRQWHQWV RI WKH FDVWLOOR ZHUH GLVWULEXWHG WR WKH SRSXODFH E\ WKH ILVFDOHV &DXFKHUR $ UXEEHUJDWKHUHU &DXFKR $ WHUP XVHG DOO RYHU WKH $PD]RQ EDVLQ WR UHIHU WR WKH JXP XVHG DV D EDVH IRU UXEEHU &DVWLOORD XOHLf &HMD 6SDQLVK WHUP ZKLFK UHIHUV WR WKH FORXG IRUHVW ]RQH RQ WKH HDVWHUQ VLGH RI WKH $QGHV 7KH WHUP OLWHUDOO\ PHDQV H\HEURZ DQG LV XVHG PHWDSKRULFDOO\

PAGE 342

&KDPD 7HUP XVHG RQ WKH 8FD\DOL 5LYHU WR UHIHU WR DQ\ RI WKH ,QGLDQ JURXSV ZKLFK SRSXODWH WKDW ULYHU 0RVW RI WKH VRFDOOHG &KDPDV EHORQJ WR RQH RU DQRWKHU RI WKH 3DQRDQ ODQJXDJH JURXSV 7KH WHUP LV XVHG VFRUQn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f DQG WKH FKXVPD ZRPHQ DQG FKLOGUHQf &RFKD /DNH LQ 4XHFKXD

PAGE 343

&RPSDGUH &RSDUHQW LQ 6SDQLVK 7KH FRPSDGUH UHODWLRQ FRPHV DERXW ZKHQ D SHUVRQ DFFHSWV WKH UHVSRQVLELOLW\ RI EHLQJ D JRGSDUHQW WR D FKLOG 2QH LV WKHQ D FRSDUHQW RI WKH FKLOGn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nV QHLJKERUV (VWFOLFD 7KH VSHDUWKURZHU RU DWODWO

PAGE 344

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n FOXGHG DQ DJULFXOWXUDO VXEVLVWHQFH EDVH DQG H[n WUDFWLYH RSHUDWLRQV ,QGLDQV ZHUH LQ GHEW WR WKH RZQHUV RI WKH KDFLHQGDV ZKR VROG WKHP SURGXFWV RIWHQ DW LQIODWHG SULFHV LQ RUGHU WR IRUFH WKHP WR ZRUN +XLWR 7KH 4XHFKXD ZRUG IRU WKH EODFN G\H DQG WKH IUXLW RI WKH SODQW FDOOHG JHQLSDS LQ %UD]LO DQG
PAGE 345

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f ZRUG ZKLFK UHIHUV WR WKH FHUHn PRQ\ RI ILUVW KDLUFXWWLQJ SUDFWLFHG E\ WKH &RFDPLOOD RQ PDOH FKLOGUHQ DIWHU WKH\ EHJLQ WR VSHDN /LHQ]R &RWWRQ FORWK IRU FORWKLQJ 6HH DOVR /RQD 7RFX\R /LQJXD )UDQFD $ FRPPRQ ODQJXDJH LQ D PXOWLOLQJXDO DUHD 4XHFKXD ZDV WKH OLQJXD IUDQFD RI WKH ORZODQG WURSLFDO IRUHVW ,QGLDQV DIWHU WKH FRQTXHVW /RQD $QRWKHU WHUP IRU FRWWRQ FORWK 0DFDQD &RFDPD ZRUG IRU WKH ZDUFOXE 0DO GH *HQWH ,OO IHHOLQJV IURP RQHnV VRFLDO HQYLURQPHQW ZKLFK DUH EHOLHYHG WR EH UHVSRQVLEOH IRU LOOQHVV DQG GHDWK 0DQGL $ WXEHU ZLWK DUURZKHDGVKDSHG OHDYHV [DQWKRVRPD VDJLWWLIROLXPf

PAGE 346

0DSDULQD $ JURXS RI ,QGLDQV SUREDEO\ VSHDNLQJ DQ $UDZDNDQ UDWKHU WKDQ D 3DQRDQ ODQJXDJH 6RPHWLPHV FDOOHG 3DQRV LQ WKH OLWHUDWXUH ZKLFK LV D VRXUFH RI PXFK FRQIXVLRQ $ERULJLQDOO\ WKH\ VHHQ WR KDYH EHHQ FORVHO\ UHODWHG WR WKH &RFDPD RI WKH 8FD\DOL 7KH\ DUH HYHQ VDLG WR KDYH OLYHG LQ WKH &RFDPD YLOODJHV 3HUKDSV D FOLHQW JURXS ZKLFK DWWDFKHG LWVHOI WR WKH &RFDPD IRU SURn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n YLGH ZLOG PHDW KXQWHG IURP WKH IRUHVWV 0HDW LV FDOOHG PLWD\R LQ PXFK RI WKH ORZODQG IRUHVW 7KH WHUP FRPHV IURP WKH ZRUG PLWD ZKLFK PHDQW DQ DVVLJQn PHQW RI ,QGLDQV LQ WKH KLJKODQGV WR ZRUN RQ SURn MHFWV IRU WKH 6SDQLVK DQG EHIRUH WKHP WKH ,QFD 0L[WR ,Q 6SDQLVK FRORQLDO WLPHV DQG WKHUHDIWHU D SHUVRQ RI PL[HG (XURSHDQ DQG ,QGLDQ EORRG 5RXJKO\ HTXLYDn OHQW WR WKH WHUP 0HVWL]R ZKHQ XVHG LQ D UDFLDO VHQVH KRZHYHU LW LV LPSRUWDQW WR QRWH WKDW PHVWL]R DQG ZKLWHPHVWL]R DUH XVHG KHUH LQ WKH FXOn WXUDO VHQVH QRW LQ D UDFLDO VHQVH

PAGE 347

0RQWDD 8VHG JHQHUDOO\ LQ 3HUX WR UHIHU WR WKH HQWLUH DUHD RI HDVWHUQ 3HUX LQFOXGLQJ ZKDW LV VRPHWLPHV FDOOHG WKH FHMD RU FORXGIRUHVW ]RQH DQG WKH VHOYD RU ORZODQG IRUHVW 3DGUHV GH )DPLOLD 3DUHQWV RI )DPLO\ 7KH RUJDQL]DWLRQ RI KHDGV RI KRXVHKROGV ZKLFK DFWV DV D VXSSRUW JURLS IRU UXUDO 3HUXYLDQ VFKRROV $PRQJ WKH &RFDPLOOD WKH RUJDQL]DWLRQV DUH DOO PDOH $PRQJ /DJXQDV ZKLWHPHVWL]RV WKH RUJDQL]DWLRQV DUH PRVWO\ FRPn SRVHG RI ZRPHQ 3DLFKH &DOOHG 3LUDUXFX LQ %UD]LO 7KH ODUJHVW IUHVKn ZDWHU ILVK LQ WKH ZRUOG $UDSDLPD *LJDVf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

PAGE 348

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f 3RQJR 8VHG KHUH LQ WZR VHQVHV 7KH ZRUG PHDQV JDWH RU GRRU LQ 4XHFKXD DQG LV XVHG LQ WKH ORZODQGV WR UHIHU WR WKH SODFHV ZKHUH ULYHUV ZKLFK RULJLQDWH LQ WKH $QGHV SDVV WKURXJK WKH ILQDO PRXQWDLQ EDUULHU WR HQWHU WKH UHODWLYHO\ IODW ORZODQGV D WLJKW SODFH 7KH WHUP DOVR PHDQV SXW LQ 6SDQLVK DQG ZDV XVHG LQ WKH WK FHQWXU\ WR UHIHU WR D ER\ DVVLJQHG E\ WKH SULHVW WR UXQ HUUDQGV :H PLJKW FDOO WKH VDPH VWDWXV D JRIHU 3ULPRDf &RXVLQ LQ 6SDQLVK 7KH &RFDPLOOD H[WHQG WKH XVH RI WKH WHUP WR LQFOXGH WKH FKLOGUHQ RI DQ\RQH FDOOHG XQFOH RU DXQW 3XHEOR 7RZQ RU YLOODJH 4XHEUDGD $ VWUHDP RU VPDOO ULYHU ZKLFK LV D WULEXWDU\ WR RQH RI WKH ODUJH VHOYDWLF ULYHUV 5DFLRQDOHV 7KH UDWLRQDO RQHV ,QGLDQV ZKR KDYH HPEUDFHG HLWKHU &KULVWLDQLW\ RU KDYH EHFRPH DFFXVWRPHG WR ZKLWHPHVWL]R ZD\V 7KH LPSOLFDWLRQ LV WKDW WULEDO ,QGLDQV GR QRW DFW UDWLRQDOO\ 6HH 3ROLFD

PAGE 349

5HGXFFLQ ,Q WKH ORZODQG WURSLFV D PLVVLRQ YLOODJH 7KH ,QGLDQV ZHUH UHGXFHG LQ WZR VHQVHV 7KH\ ZHUH FRQFHQ WUDWHG LQ PLVVLRQ YLOODJHV ZKLFK UHGXFHG WKH DUHD LQ ZKLFK WKH\ ZHUH JRYHUQHG 7KH\ ZHUH DOVR UHGXFHG WR WKH &KULVWLDQ IDLWK D XVDJH ZKLFK GHULYHG IURP WKH EHOLHI E\ WKH HDUO\ PLVVLRQDULHV WKDW WKH ,QGLDQV KDG DW D SUHYLRXV WLPH EHHQ &KULVWLDQV EXW KDG IDOOHQ IURP WKH IDLWK 5HJLGRUHV 2QH RI WKH DXWKRULW\ SRVLWLRQV LQ VRPH RI WKH ORZODQG PLVVLRQV 5HJLGRUHV ZHUH PHPEHUV RI WKH FDELOGR 5HPDWLVWD $ SHUVRQ ZKR EX\V SURGXFWV RULJLQDWLQJ LQ RQH SODFH ZKROHVDOH DQG UHVHOOV WKHP RQ D UHWDLO EDVLV RU LQ GHWDLO DV WKH ORFDO ODQJXDJH KDV LW &RFD PLOOD ZKR EULQJ SURGXFWV WR ORFDO PDUNHWV XVXDOO\ VHOO WKHP WR D UHPDWLVWD 0DQ\ &RFDPLOOD KDYH ZRUNHG DV UHPDWLVWDV LQ
PAGE 350

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nV VLEOLQJV 7DKXDPSD /DQGV LQ WKH IORRGSODLQ ZKLFK DUH VZDPS\ RU ZKLFK LQXQGDWH DW YHU\ VOLJKW ULVHV LQ WKH HOHYDWLRQ RI WKH ZDWHU 7HQLHQWH $ OLHXWHQDQW LQ WKH 6SDQLVK DUP\ ,Q PRGHUQ XVDJH WKH WHQLHQWH LV WKH OLHXWHQDQW JRYHUQRU ZKR LV RQH RI WKH WZR PDLQ DXWKRULW\ SRVLWLRQV LQ 3HUXYLDQ WRZQV DQG YLOODJHV 7KH WHQLHQWH DFWV DV WKH UHSUHVHQWDWLYH RI WKH SUHVLGHQW LQ WKH YLOODJH DQG KLV DXWKRULW\ FRPHV IURP WKH SUHIHFWXUH RI WKH GHSDUWPHQW 7LRDf 8QFOH DQG $XQW $ WHUP DSSOLHG WR DQ\RQH HJRnV SDUHQWV FDOO SULPRDf 7LSLWL $ QDWLYH PDQLRF SUHVV $ ORQJ ZRYHQ WXEH ZKLFK LV XVHG WR VTXHH]H WKH MXLFH RXW RI FUXVKHG PDQLRF DV SDUW RI WKH SURFHGXUH IRU SUHSDULQJ IDULQD 7LSLVQFD /LWHUDOO\ FXW RU FXW RII LQ 4XHFKXD ,Q WKH ORZODQG IRUHVW D WLSLVKFD LV DQ R[ERZ ODNH 7KH R[ERZ ODNHV DUH DOVR FDOOHG FRFKDV 7RFX\R &KHDS ZKLWH FRWWRQ FORWK XVHG IRU PRVTXLWR QHWWLQJ 7ULEX $ WULEH 7KH WHUP WRGD\ UHIHUV WR WKH WULEDO RU UHODWLYHO\ XQDFFXUWXUDWHG ,QGLDQV ,W LV XVHG LQ D GHURJDWRU\ VHQVH LQ PRVW FRQWH[WV

PAGE 351

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

PAGE 352


PAGE 353

$33(1',; ,, 3238/$7,21 &+$5$&7(5,67,&6 $&+8$/ 7,3,6+&$

PAGE 354

U ff 3238/$7,21 2) $&+8$/ 7O3O6+&$ 129 %,57+6 129 WR 129 A '($7+6 129 WR 129 1(7 3238/$7,21 *52:7+ ,00,*5$7,21 ( 0 *3 $7O2 1 1(7 9,//$*( *52:7+ rR [ I LQGLYLGXDOV r

PAGE 355

3(5&( 17 23 / 9( &+,/' 0257$/,7< ; W *& OHVV WKDQ \HDU \HDU \HUV \HDUV \HDUV \WDUV $ 7 $&( '($7+

PAGE 356

$33(1',; ,,, /,67 ,1 63$1,6+ 2) )22'6 5(*8/$5/< &21680(' %< 7+( &2&$0,//$

PAGE 357

$33(1',; ,,, /,67 ,1 63$1,6+ 2) )22'6 5(*8/$5/< &21680(' %< 7+( &2&$0,//$ )LVK :LOG 0HDW $FDUDKXDWVX $FKXQL PRQNH\ $VQDQDYH $QXMH DJRXWL %DGUH &DUDFKXSD DUPDGLOOR %RTXLFKLFR +XDQJDQD ZKLWHOLSSHG %XMXUTXH SHFFDU\ *DPLWDQD /DJDUWR DOOLJDWRU +XDVDFR 0DM£] SDFD /L]D RVR +RUPLJXHUR DQWHDWHU 0DFDQD 3HUGL] JDPH ELUG 0DQGQ 6DMLQR FROODUHG SHFFDU\ 0DQLWRD 7DULFD\D ZDWHU WXUWOH 0DSDUDWH 3DORPHWD 3DQD 'RPHVWLF 0HDW 5DFWDFDUD 6DUGLQD *DOOLQD FKLFNHQ 6KX\X &KDQFKR SLJ 7XFXQDU SDWR GXFN
PAGE 358

:LOG )UXLWV $JXDMH IUXLW RI PDXULWLD IOH[XRVD &RFRQD VRODQXP VS IUXLW 'DOHGDOH 0XOODFD """""" 3DQ GHO $UERO DUWRFDUSXV FRPXQLV IRUHW 8QJXUDKXL XQJXUDKXL VS D SDOP IUXLW &XOWLYDWHG DQG 6HPLFXOWLYDWHG )UXLWV b &DLPLWR OXFXPD FDLPLWR &DULD VXJDU FDQH VDFFKDUXP RIILFLQDUXP *XDYD SVLGLXP JXDMDYD *XD\DED SVLGLXP S\ULIHUXP /LPQ OHPRQ FLWUXV OLPQ 0DFDPER WKHREURPD FDFDR 0DPH\ PDPPHD DPHULFDQD 0DQJXD FRPPRQ PDQJR 1DUDQMD VZHHW RUDQJH 3LQD SLQHDSSOH EURPH OLD DQDQDV 3DOWD DYRFDGR SHUVHD JUDWLVVLPD 3DSD\D FDULFD SDSD\D 3LIXD\R SHDFK SDOP EDFWULV HVSHFLRVD 7RURQMD JUDSHIUXLW =DSRWH ]DSRWH 6DQGLD ZDWHUPHORQ 0LVFHOODQHRXV %HYHUDJHV &DI &KDSR &KLFKD GH 0DOD +XDUDSR GH 0DGXUR 0DVDWR GH
PAGE 359

0LVFHOODQHRXV )RRGV &RQILWHV FDQG\ FRPSDUDWLYHO\ UDUHf &KLFOD\R FKLFN SHDV &KLFOH FKHZLQJ JXP )DULQD WRDVWHG PDQLRF IORXU *DOOHWD FUDFNHUV +XHYR GH *DOOLQD FKLFNHQ HJJV +XHYR GH 3HVFDGR ILVK HJJV +XHYR GH 3DWR GXFN HJJV +XHYR GH 7DULFDYD WXUWOH HJJV +XPLWD FRUQPHDO ZUDSSHG LQ OHDYHV DQG VWHDPHG 0HLR PDQLRF FDNHV 3DQ FRPPHUFLDO EUHDGV FRPSDUDWLYHO\ UDUHf

PAGE 360

$33(1',; ,9 &2&$0,//$ .,16+,3 7(506

PAGE 361

EUDF;HW6

PAGE 362

7HUPV DQG 5HFLSURFDOV &ROOHFWHG ,QFOXGH WKH )ROORZLQJ 5HODWLRQ 0DOH (JRf 7HUP 5HFLSURFDO (OGHU %URWKHU LUXDLSDQ LUKXDPLVKDQ (OGHU 6LVWHU FXQDWXD TXLKXL YLHMR :LIH PLULJXD PHQD 6RQ WDfLUDr SDSD 'DXJKWHU WDfLUD SDSD 6RQnV :LIH WDfKXDPD WXWLUD 'DXJKWHUn V +XVEDQG LFKLPDUL WXWLUD 6RQnV 6RQ ULPDULUX SDSDWXD 6RQnV 'DXJKWHU ULPDFXQD SDSDWXD
PAGE 363

UHFLSURFDO IRU FURVV FRXVLQ IHPDOH LV WKH VDPH WHUP DV EURWKHU HYHQ WKRXJK WKLV ZRPDQ LV D SUHIHUUHG ZLIH 7KH WHUPLQRORJ\ IRU WKLV UHODWLRQVKLS PLJKW EH WUDQVODWHG OLWWOH ZLIHEURWKHU :LWK D FHUWDLQ IOH[LELOLW\ WKH V\VWHP LV UHFRJQL]DEOH DV D VLPSOH ELIXUFDWH PHUJLQJ V\VWHP ZLWK ,URTXRLV FRXVLQ WHUPV 7KH WHUPV SDL DQG PDPDTXLUD DUH VLPSOH WUDQVIRUPDn WLRQV RI SDSD DQG PDPD HQGHDUPHQWVf DQG LQ IDFW WKH PRWKHUnV VLVWHU FDQ EH DGGUHVVHG DV PDPD 7KH WHUPV IRU FURVV FRXVLQV DUH WKH WHUPV DOVR IRU EURWKHULQODZ DQG VLVWHULQ ODZ DQG WKH ZLYHV RI PDOH SDUDOOHO FRXVLQV DUH DOVR FDOOHG E\ WKH WHUP PLUTXLD 7KLV WHUP LV D VLPSOH WUDQVIRUPDWLRQ RI WKH ZRUG IRU ZLIH PLULTXD DQG PD\ EH XQGHUVWRRG WR PHDQ VRPHWKLQJ OLNH OLWWOH ZLIH RU DOPRVW ZLIH 7KH VDPH WUDQVn IRUPDWLRQ RFFXUV LQ WKH ZRPDQnV ZRUG IRU VRQ PLPLUD :KHQ PRWKHUnV VLVWHU RU IDWKHUnV EURWKHUnV ZLIH DGGUHVVHV HJR LW LV D PLPLULD VWHP VRQ DOPRVW VRQ OHJLWLPDWH VRQ $OVR WKH ZLYHV RI PDOH SDUDOOHO FRXVLQV DGGUHVV WKH PDOH HJR DV PHQLD D VLPSOH WUDQVIRUPDWLRQ RI WKH WHUP PHQD KXVEDQGf ,Q WKH VHFRQG DVFHQGLQJ RU VHFRQG GHVFHQGLQJ JHQHUDWLRQ DOO UHODWHG PDOHV DUH FDOOHG SDSDWXD ELJ IDWKHUf RU ULPDULUX JUDQGVRQf :LWK UHJDUG WR HJRnV UHODWLRQVKLS WR ZRPHQ LW VKRXOG EH QRWHG WKDW WKH ZLYHV RI EURWKHUV DQG RI SDUDOOHO FRXVLQV DUH DGGUHVVHG E\ WKH VDPH WHUP HYHQ WKRXJK WKH EURWKHU DQG PDOH SDUDOOHO FRXVLQ KDYH GLIIHUHQW WHUPV 7KH IHPDOH FURVV FRXVLQ JHWV WKH VDPH WHUP DV WKH PDOH SDUDOOHO FRXVLQnV ZLIH EXW WKH UHFLSURFDO YDULHV 7KHUH DUH WKHQ RQO\ WZR FODVVHV RI ZRPHQ RQ HJRnV JHQHUDWLRQ IURP KLV SRLQW RI YLHZPDUULDJH DEOHV DGGUHVVHG DV PLUTXLDf DQG XQPDUULDJHEOHV DGGUHVVHG DV FXDf )URP WKH VWDQGSRLQW RI ZRPHQ WKH PDOH ZRUOG LV GLYLGHG LQWR 4XLKXL 4XLKXLUD DQG 0HQLD 7KH ILUVW WZR DUH SURn KLELWHG H[FHSW ZKHUH TXLKXL LV XVHG DV D FRQYHQWLRQ WR PDVN WKH VH[XDO SRVVLELOLWLHV LQKHUHQW LQ WKH UHODWLRQVKLSf DQG PHQLD LV SHUPLWWHG )LQDOO\ VRPHWKLQJ VKRXOG EH QRWHG DERXW SUHIHUHQFH LQ WHUPLQRORJ\ VLQFH LW FOHDUO\ LQGLFDWHV WKH SDWULOLQHDO EDVLV RI WKH &RFDPLOOD NLQVKLS V\VWHP

PAGE 364

%HWZHHQ PHQ EORRG UHODWLRQV LQ WKH SDWULOLQH WDNH SUHIHUHQFH RYHU DIILQDO UHODWLRQV HYHQ WKRXJK WKH DIILQDO UHODWLRQ PD\ EH E\ RXU UHFNRQLQJ FORVHU ([DPSOH D PDQnV SDUDOOHO FRXVLQnV VRQ LV DOVR WKH KXVEDQG RI KLV PRWKHUnV VLVWHUnV GDXJKWHU WKDW LV KLV IHPDOH SDUDOOHO FRXVLQnV KXVEDQG +H KDV D FKRLFH RI FDOOLQJ KLP WDLULD QHSKHZ RU DOPRVW VRQf RU LPD FRXVLQf +H FDOOV KLP WDLULD HYHQ WKRXJK WKH PDQ LV DV ROG DV KH LV 5HODWLRQV WKURXJK WKH IDWKHU WDNH SUHIHUHQFH RYHU UHODWLRQV WKURXJK WKH PRWKHU -RV IRU H[DPSOH LV DW RQFH WKH VRQ RI D FXQD VKRXOG EH FDOOHG QHSKHZf DQG WKH VRQ RI D WDLULD VKRXOG EH FDOOHG JUDQGVRQf RI WKH VDPH PDQ $OIRQ]R $OIRQ]R FDOOV KLP JUDQGVRQ DQG WKH UHODWLRQVKLS WKURXJK WKH ZRPDQ LV LJQRUHG

PAGE 365

$33(1',; 9 +,6725,& &$7+2/,& )(67,9$/ &<&/( $6 35$&7,&(' %< 7+( &2&$0,//$ ,1 $&+8$/ 7,3,6+&$ '85,1* 7+( 7+ $1' 7+ &(1785,(6

PAGE 366

$33(1',; 9 +,6725,& &$7+2/,& )(67,9$/ &<&/( $6 35$&7,&(' %< 7+( &2&$0,//$ ,1 $&+8$/ 7,3,6+&$ '85,1* 7+( 7+ $1' 7+ &(1785,(6 7KH VRXUFH IRU WKLV LQIRUPDWLRQ LV WKH DFFRXQWV RI VHYHUDO 7LSLVKTXLQRV HVSHFLDOO\ 3URIHVVRU -XDQ GH OD &UX] 0XUD\DUL 0RVW RI WKH SUDFWLFHV IRXQG LQ WKLV GHVFULSWLRQ DUH QR ORQJHU H[WDQW 7KH GHJUHH RI FKDQJH IURP -HVXLW WLPHV f LQ WKH ULWXDOV LV XQNQRZQ EXW IURP WKH VFDQW\ LQIRUPDWLRQ DYDLODEOH LW DSSHDUV WKDW PDQ\ RI WKH SUDFWLFHV UHFRXQWHG WR PH E\ -XDQ GH OD &UX] DQG RWKHUV GDWH IURP WKLV HDUO\ SHULRG LQ &RFDPLOOD SRVWFRQWDFW KLVn WRU\ -DQXDU\ &KDQJLQJ RI WKH 9DUDYRV 7KLV IHVWLYDO ZDV FDOOHG WKH 'LD GH OD (QWUHJD DQG LV VWLOO SUDFWLFHG LQ VXEVWDQWLDOO\ WKH IRUP JLYHQ KHUH 7KH YDUD\RV ZHUH DQG DUH WKH SROLFH n RI WKH YLOODJH 7KHUH ZHUH RI WKHP LQ 7LSLVKFD XQGHU WKH DXWKRULW\ RI WKH &XUDFD DQG WKH 7HQLHQWH $OFDOGH QG WR WKH &XUDFDf (DFK YDUD\R ZDV H[n SHFWHG WR VHHN RXW KLV UHSODFHPHQW DQG WKH WHUP RI VHUYLFH ZDV RQH \HDU 7KH YDUD\RV FDUULHG YDUDV RU EDWRQV RI VROLG KDUGZRRG VKXQJRf DWWDFKHG WR WKH ZULVW E\ D FRUG $QRWKHU FRUG UDQ WR WKH VKRXOGHU 7KH WHQLHQWH DOFDOGH QRZ FDOOHG &DSLWDQ GHO 9DUD\Rf FDUULHG D ORQJHU YDUD DQG WKH &XUDFD FDUULHG D YDUD ZLWK D FXUYHG KDQGOH 2Q WKH GD\ RI WKH FKDQJH RI WKH YDUD\RV WKH\ ZHUH VZRUQ LQ WKH MXUDPLHQWRf E\ WKH &XUDFD 7KH\ VZRUH WR FRPSOHWH IDLWKIXOO\ WKH REOLJDWLRQ WKH\ ZHUH JLYHQ

PAGE 367

-DQXDU\ 'LD GH ORV 5H\HV 7KUHH .LQJVf 2Q WKLV GD\ WKH FKDQJLQJ RI WKH YDUD\RV ZDV FHOHn EUDWHG 7KH IDPLOLHV RI WKH QHZ YDUD\RV ZRXOG SUHSDUH PXFK IRRG DQG GULQN DQG WKH GD\ ZDV FHOHn EUDWHG ZLWK GDQFLQJ DQG WKH WUDGLWLRQDO SDQGLOOD PXVLF IOXWH SDQSLSH DQG VPDOO VQDUH GUXPf ZDV SOD\HG 7KH YDUD\RV ZRXOG PDNH WKH URXQGV RI WKH KRXVHV RI WKH QHZ YDUD\RV WR GDQFH DQG HQMR\ WKH IRRG :RPHQ ZRXOG ZHW WKHP GRZQ LQ WKH VWUHHWV GXULQJ WKH GDQFLQJ VD\LQJ 9LYHQ ORV UH\HV /RQJ OLYH WKH NLQJVf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f %ULQJLQJ WKHP EDFN LQWR WKH YLOODJH WKH YDUDYRV GHFRUDWHG WKHP ZLWK IUXLWV EULJKWO\ FRORUHG FORWK RU RWKHU DGRUQPHQWV +ROHV ZHUH SXW LQWR WKH JURXQG LQ IURQW RI HDFK RI WKH YDUD\RV KRXVHV DQG WKH \DULQDV ZHUH VHW LQWR WKHP 7KHVH SROHV RI SDOP ZHUH FDOOHG KPLVKL DQG ZHUH HUHFWHG ZLWK WKH DFFRPSDQLPHQW RI WUDGLWLRQDO SDQGLOOD PXVLF WKH SDQ SLSH DQG WKH VQDUH GUXP 2QO\ WKHVH GD\V GR ZH VHH WKH ERPER RU EDVV GUXP ,Q WKDW WLPH WKHUH ZHUH RQO\ WZR PXVLFLDQV LQ WKH SDQGLOOD 2Q 7XHVGD\ SHRSOH SDLQWHG WKHPVHOYHV ZLWK DVKHV DQG WKH PXVLF DQG GDQFLQJ FRQWLQXHG 2Q :HGQHVn GD\ WKH KPLVKLV ZHUH FXW GRZQ LQ WKH IROORZLQJ

PAGE 368

PDQQHU 3DLQWHG ZLWK UFX EL[D RUHOODQVf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f VHHPV WR KDYH EHHQ D WLPH ZKHQ WKH PDMRU SURKLELWLRQV GHDOW ZLWK PDNLQJ QRLVH 6HFXODU QRLVH ZDV SURKLELWHG IURP 0RQGD\ XQWLO WKH 6DWXUGD\ RI *ORU\ 6DFUHG QRLVH PDGH E\ PDWUDFRV D VSHFLHV RI UDWWOH ZKLFK PDNHV QRLVH E\ NQRFNLQJ WRJHWKHU WZR SLHFHV RI ZRRG IDVWHQHG WR WKH VDPH EDVHf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f DQG ZKR ZRXOG EXUQ WKHP LQ WKH KRXVHV WR SURWHFW WKH KRXVHf /DWHU WKH\ ZHUH WDNHQ RXW RI WKH FKXUFK DQG XVHG WR HUHFW DUFKHV RQ HDFK FRUQHU RI WKH YLOODJH ZKLFK ZHUH XVHG DV VWRSV IRU WKH SURn FHVVLRQ RI &KULVW FUXFLILHG 6SHFLDO FDUH ZDV WDNHQ WR SODFH VWRSV DW WKH SODFHV ZKHUH WKH SURn FHVVLRQ SDVVHG FORVH WR WKH FHPHWHU\

PAGE 369

%RWK 0RQGD\ DQG 7XHVGD\ QLJKWV VDZ D SURFHVVLRQ RI WKH LPDJH RI &KULVW DURXQG WKH SOD]D :HGQHVn GD\ KDG QR VSHFLDO DFW DVVRFLDWHG ZLWK LW EXW DQRWKHU SURFHVVLRQ RI &KULVW PDGH LWV ZD\ DURXQG WKH SOD]D 2Q 7KXUVGD\ PRUQLQJ DW DERXW $0 &KULVW ZDV NLOOHG 7KH NLOOLQJ ZDV GRQH E\ WKH VDFULVWDQ ZKR JDYH D F£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n VLYH ZHDSRQf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n EUDWLRQ ZDV JLYHQ RYHU WR WKH SHQLWHQWV ZKLFK DSSHDU WR KDYH EHHQ D PDOH FXOW RI FRXUDJH 7KH SHQLWHQWV ZHUH DOO PHQ ZKR KDG UHDFKHG DGXOWn KRRG DQG ZHUH DOO YROXQWHHUV 7KHUH ZHUH RI WKHP LQ 7LSLVKFD DQG HDFK RQH SDVVHG \HDUV RI

PAGE 370

SHQLWHQFH WR ULG KLPVHOI RI VLQ 7KH\ ZHUH OHG E\ D PD\RU ZKR ZDV DQ ROGHU PDQ EXW ZKR DOVR ZDV D SHQLWHQW 7KH\ DSSHDUHG RQ 7KXUVGD\ QLJKW RI 6HPDQD 6DQWD GUHVVHG LQ ZKLWH UREHV DQG FDUU\LQJ WZR LWHPV 2QH ZDV D SLHFH RI OHDWKHU PHDVXULQJ DERXW E\ FP DQG PDGH IURP WKH VNLQ RI WKH PDQDWHH 7KH RWKHU LWHP ZDV D EHHVZD[ EDOO ERODf LQ ZKLFK ZHUH VHW PDQ\ SLHFHV RI EURNHQ JODVV 7KH EDOO ZDV KDQJLQJ IURP D VWULQJ ZKLFK ZDV FDUHn IXOO\ PHDVXUHG WR WKH OHQJWK RI WKH HOERZ WR WKH KDQG 7KLV PHDVXUHPHQW VHUYHG WR SUHYHQW WKH EDOO IURP SXQFWXULQJ D OXQJ ZKHQ WKH PHQ ZKLSSHG WKHPn VHOYHV ZLWK LW RYHU WKH VKRXOGHU 7KH SHQLWHQWV IRUPHG LQ WZR OLQHV LQ IURQW RI WKH FKXUFK 7KH\ HQWHUHG DQG DOO WKH OLJKWV ZHUH SXW RXW ,Q FRPSOHWH GDUNQHVV WKH VDFULVWDQ VDQJ D F£QWLFR GH SHQLWHQFLD 7KHQ WKH PHQ H[LWHG DQG PDUFK WR D VWUHHW ZKHUH D FURVV KDG EHHQ SUHn YLRXVO\ SODFHG 7KHUH WKH\ IHOO RQ WKHLU NQHHV DQG UHFLWHG D SDWHU QRVWHU VWLOO LQ WKH IRUPDWLRQ RI WZR OLQHV $IWHUZDUGV WKH\ VWRRG XS DQG FRPn PHQFHG IODJHOODWLRQ RI WKH ERG\ ZLWK WKH EDOOV VZLQJLQJ WKH EDOO IURP VLGH WR VLGH DQG IODLOLQJ RYHU WKH VKRXOGHU XQWLO WKHLU EDFNV ZHUH UDZ DQG EORRG\ 7KH PD\RU DOVR VWUXFN KLPVHOI $OO WKH PHQ ZHUH nnGUXJJHG RQ DJXDUGLHQWH DQG KXDUDSR DQ DOFRKROLF GULQN PDGH IURP ULSH EDQDQDVf WR VWHHO WKHPVHOYHV IRU WKH RUGHDO $Q H[FHSWLRQDOO\ FRXUDJHRXV PDQ PLJKW VWULNH KLPVHOI WHQ WLPHV RQ HDFK VLGH ,W LV UHFDOOHG WKDW )HUQDQGR &XULWLPD ZDV VXFK D PDQ $IWHU WKH IODJHOODWLRQ WKH\ PDUFKHG EDFN WR WKH FKXUFK WKLV WLPH KLWWLQJ WKHPVHOYHV RQ WKH EDFN ZLWK WKH PDQDWHH VNLQ $W WKH FKXUFK HDFK PDQ PDGH DQ RIIHULQJ RI PRQH\ LWHPV RI DGRUQPHQW LQFHQVH RU RWKHU YDOXDEOHV 7KHVH REMHFWV ZHUH SDUW RI WKH WUHDVXUH RI WKH FKXUFK DQG ZHUH XVHG IRU EX\LQJ WKLQJV IRU WKH FKXUFK VXFK DV YHVWPHQWV DQG FDQGOHV $IWHU WKH RIIHULQJ WKH PHQ ZHQW KRPH ZKHUH WKH\ ZDVKHG WKHLU ZRXQGV ZLWK KRW ZDWHU LQ ZKLFK D WHD RI RUDQJH OHDYHV ZDV PDGH 6DOW ZDV WKHQ SXW RQ WKH ZRXQGV WR GU\ WKHP DQG JXDUG DJDLQVW LQIHFWLRQ

PAGE 371

)ULGD\ FRQWLQXHG WKH JXDUG DW WKH FKXUFK RYHU WKH ERG\ RI WKH FUXFLILHG &KULVW DW 30 WKH SLODWRV UHSUHVHQWDWLRQV RI 3RQWLXV 3LODWHf ZHUH GUDJJHG WKURXJK WKH VWUHHWV DQG EHDWHQ ZLWK VWLFNV $W $0 WKH\ ZHUH WDNHQ WR WKH SOD]D ZKHUH RQH ZDV SODFHG RQ WKH ZHVW VLGH DQG RQH ZDV SODFHG RQ WKH HDVW 2QH ZDV D IHPDOH ILJXUH DQG RQH ZDV D PDOH ILJXUH 7R WKH DFFRPSDQLPHQW RI VDFUHG PXVLF SOD\HG E\ SLIDQRV IOXWHVf URQGDGRUHV SDQ SLSHVf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f IRU PDVDWR FDOOHG WLFDFX\D RU PRFDKXD 7KH YRWR ZDV FDUULHG WR WKH KRXVH RI WKH PD\RUGRPR DQG WKHUH WKH SDUW\ ZDV KHOG $W WKLV SDUW\ WKH YROXQWHHUV IRU WKH QH[W \HDUnV IHVWLYDO ZHUH VLJQHG XS DQG UHFHLYHG WKHLU SRUWLRQ RI WKH YRWR WR ELQG WKHP WR WKHLU DJUHHPHQW 7KH SHUVRQQHO IRU WKH ILHVWD RI 6HPDQD 6DQWD ZHUH DV IROORZV f ILUVW PD\RUGRPR f VHFRQG PD\RUGRPR f KHOSHUV WKH D\XGDQWHV 7KH\ ZHUH REOLJHG WR SURYLGH

PAGE 372

DV D SURPLVH RU SURPHVD PHDW DJXDUGLHQWH PDVDWR DQG FDQGOHV IRU WKH YRWR 7KH WHUPLQDn WLRQ RI WKLV SDUW\ ZDV WKH WHUPLQDWLRQ RI WKH IHVWLYDO 'D\V $IWHU 6DWXUGD\ RI *ORU\ 6DEDGR GH *ORULDf )LHVWD GH &RUSXV &ULVWL )RUW\ GD\V DIWHU WKH 6DEDGR GH *ORULD WKH YLOODJH FHOHEUDWHG &RUSXV &ULVWL $V LQ WKH RWKHU ILHVWDV D PLWD\R PHDW ILVK DQG GULQN RIIHULQJVf ZDV SUHn SDUHG SDUW IRU WKH YRWR DQG SDUW IRU WKH YLOODJH DW ODUJH 7KH YRWRZHQW IRU WKH HQWHULQJ ILHVWHURV RU WKH QHZ YROXQWHHUV IRU WKH QH[W \HDUnV FHOHEUDWLRQ )RU WKLV FHOHEUDWLRQ WKH PD\RUGRPRV PDGH PDVNV IURP WKH ODUJH URXQG SRG RI WKH ZLQJR WUHH FUHV FHQWLD FXMHWHf FDOOHG SDWH GH ZLQJR (DFK PDVN ZDV SDLQWHG ZLWK FDULFDWXUHV DSSDUHQWO\ RI 6SDQLVK VROGLHUV LQ WK FHQWXU\ DUPRU IRU WKH GHVFULSWLRQ JLYHQ LV H[SOLFLW LQ DWWULEXWLQJ EHDUGV RI FRUQ KXVN FRUQ KXVN KDLU JODVV WHHWK DQG SOXPHV LQ RUGHU WR UHSUHVHQW HO GHPRQLR WKH GHYLO RU GHPRQ $ FKLHI RI WKH PDVNHG PHQ ZDV FKRVHQ DQG ZDV JLYHQ WKH PRVW KRUULEOH PDVN RI DOO 7KH UHVW GRQQHG RUGLQDU\ PDVNV 3DUW RI WKH JURXS GUHVVHG DV ZRPHQ 7R GHVLJQDWH IHPDOH VWDWXV WKH\ FDUULHG DSDULQDV WXTXLWDWDf RU FDUU\LQJ VOLQJV IRU EDELHV IDQV RI SDOP ILEUH RI WKH W\SH XVHG IRU IDQQLQJ ODJJLQJ ILUHV SDULDWD LQ &RFDPLOODf $V D EDE\ WKH\ FDUULHG D IUXLW FDOOHG VHFDQD LQ 6SDQLVK DQG WD\X\D LQ &RFDPLOOD 6SHFLHV 8QNQRZQf 7KH FKLHI RI WKH PDVNHG PHQ ZKR ZHUH FDOOHG PDLFXFRV ZKLWH GHPRQV LQ &RFDPLOODf FDUULHG D EORZJXQ DQG D TXLYHU RI GDUWV PDGH RI EDPERR +H DOVR ZRUH D GUHVV DQG D EHOW IURP ZKLFK GHSHQGHG D KXJH PDOH RUJDQ PDGH IURP EDOVD ZRRG DQG ZLWK WKH KHDG SDLQWHG LQ RUGHU WR IULJKWHQ WKH ZRPHQ 7KH JURXS RI PDVNHG GDQFHUV ZRXOG GDQFH LQ WKH VWUHHWV DOO QLJKW ORQJ WR WKH VRXQG RI D GUXP 2WKHU PDLFXFRV ZRXOG GDQFH KROGLQJ DUURZV DQG HQWHULQJ LQWR WKH LQGLYLn GXDO KRXVHV RI WKH ILHVWHURV 7KH PDLFXFRV ZHUH SHQLWHQWV DQG VHUYHG WKH IXQFWLRQ RI PDVNHG GDQFHUV IRU \HDUV 7KH IXQFWLRQ RI WKH PDVNHG PHQ YLV D YLV WKH PDVNHG ZRPHQ ZDV WR SURWHFW WKHP

PAGE 373

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f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f ZRXOG SDUDGH DURXQG WKH WRZQ $W D FHUWDLQ SRLQW LW ZDV WUDGLWLRQDO IRU D \RXQJ PDQ PXFKDFKRf WR VHL]H WKH KHDGJHDU IURP WKH KHDG RI WKH VDLQW DQG WKLV VLJQDOOHG WKH HQG RI WKH SURFHVVLRQ 7KH VDLQW ZDV WKHQ WDNHQ EDFN WR FKXUFK ,Q WKH

PAGE 374

DIWHUQRRQ D SDUW\ ZDV KHOG ZKLFK RQO\ HQGHG ZKHQ WKH PDVDWR UDQ RXW 7KH FKLFNHQV NLOOHG ZHUH HDWHQ ZLWK ULFH WKH ZKROH ZUDSSHG LQ EDQDQD OHDYHV DQG VWHDPHG 7KLV GLVK LV FDOOHG D -XDQ 1RYHPEHU DQG )LHVWD RI 7RGRV 6DQWRV $OO 6DLQWV 'D\f 7KLV ILHVWD DFWXDOO\ EHJDQ VHYHUDO GD\V SUHYLRXVO\ ZKHQ WKH SUHSDUDWLRQ RI WKH PHLRV ZDV EHJXQ 7KH PHLR LV D IODW JULGGOHFDNH PDGH IURP PDQLRF ZKLFK KDV EHHQ FUXVKHG DQG WKH MXLFHV H[SHOOHG 2Q WKH PRUQLQJ RI 1RYHPEHU WKH \RXQJ ER\V UDQ IURP WKH FKXUFK FU\LQJ DQJHOV DQJHOV /DWHU WKH\ JR WR WKH KRXVHV IRU WKH SXUSRVH RI VHWWLQJ RXW WKH RIIHULQJ WR WKH DQJHOV GHDG FKLOGUHQf ZKLFK WUDn GLWLRQDOO\ FRQVLVWHG RI FDQGOHV DQG FORWKHV 7KLV ZDV FDOOHG WKH UHPRVXPD SDUD ORV DQJHOHV OLPRVQDf LQ &RFDPLOOD /DWHU WKH VDFULVWDQ ZRXOG JR IURP KRXVH WR KRXVH ZLWK WZR FDSLWDQV RI WKH YDUD\R DQG DQ DVVLVWDQW DQG SUD\ D VSHFLDO SUD\HU IRU HDFK FDQGOH (DFK FDQGOH UHSUHVHQWHG DQ DQJHO RU GHDG FKLOG RI WKH IDPLO\ DQG HDFK ZDV QDPHG 7KH VHFRQG GD\ VDZ D SDUWLDO UHSHWLWLRQ RI WKH ILUVW GD\ H[FHSW WKDW WKH JURXS RI PXFKDFKRV GLG QRW OHDYH IURP WKH FKXUFK 7KH VHFRQG GD\ ZDV JLYHQ RYHU WR FDQGOHV DQG RIIHULQJV WR WKH GLIXQWRV GHDG DGXOWV RU DQFHVWRUVf ,Q SDVW WLPHV LW ZDV KHOG LQ WKH FKXUFK ZKHUH WKH YLOODJHUV ZRXOG JDWKHU HDFK SHUVRQ ZLWK KLV VWUDZ PDW DQG FDQGOHV IRU KLV LQGLYLGXDO DQFHVn WRUV 7KH EHOOV ZRXOG ULQJ DOO GD\ DQG DOO QLJKW IURP EHJLQQLQJ WR HQG RI WKLV ILHVWD $QRWKHU GLIIHUHQFH IURP WKH XVXDO ILHVWD ZDV WKDW 7RGRV 6DQWRV GLG QRW KDYH D PD\RUGRPR RU ILHVWHURV ,QIRUPDQWV VD\ LW ZDV IRU HYHU\ERG\ $W SUHVHQW WKH VHFRQG GD\ LV KHOG LQ WKH FHPHWHU\ ZKHUH HDFK IDPLO\ SORW LV RFFXSLHG E\ D GXHR RZQHUf RI WKH FDQGOHV DQG RIIHULQJV RI PHLRV EUHDG HJJV DQG DJXDUGLHQWH DUH PDGH 7KH RIIHULQJV DW SUHn VHQW DUH VFRRSHG XS E\ WKH SROLFLD WKH SHRSOH DFFRPSDQ\LQJ WKH VDFULVWDQf DQG DUH ODWHU GLYLGHG DPRQJ WKH SUD\HU JURXS DQG WKH EHOOULQJHU

PAGE 375

'HFHPEHU DQG 1DYLGDG &KULVWPDVf 7KH ROGHVW IRUP RI WKLV ILHVWD VHHPV WR KDYH LQn YROYHG WZR FRPPXQLWLHV $WDKXDOSD DQG 7LSLVKFD %HIRUH WKH WZHQW\WKLUG RI 'HFHPEHU WKH LPDJH RI WKH LQIDQW -HVXV DFWXDOO\ WZR LPDJHV RQH PDOH DQG RQH IHPDOHf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

PAGE 376

%,%/,2*5$3+< $FXD 3DGUH &ULVWRYDO GH $ 1HZ 'LVFRYHU\ RI WKH *UHDW 5LYHU RI WKH $PD]RQV f 0DGULG 5R\DO 3UHVV ,Q ([SHGLWLRQV LQWR WKH 9DOOH\ RI WKH $PD]RQV &OHPHQW 5 0DUNKDP (GLWRU DQG 7UDQVODWRU 2ULJLQDO /RQGRQ +DNO\XW 6RFLHW\ $GDPV 5 1 $ &KDQJH IURP &DVWH WR &ODVV LQ D 3HUXYLDQ 6LHUUD 7RZQ 6RFLDO )RUFHV f $UDLFK -RVH ) 0 +LVWRULD GH ODV 0LVLRQHV GHO &RQYHQWR GH 6DQWD 5RVD GH 2FRSD -XOL£Q +HUDV 2)0 (G /LPD (GLWRULDO 0LOOD %DWUHV $UFKLYHV RI WKH
PAGE 377

%DUWK )UHGULN (G (WKQLF *URXSV DQG %RXQGDULHV WKH VRFLDO RUJDQLn ]DWLRQ RI FXOWXUDO GLIIHUHQFH /RQGRQ $OOHQ DQG 8QZLQ %HUJPDQ 6KLSLER 6XEVLVWHQFH LQ WKH 8SSHU $PD]RQ 5DLQIRUHVW 8QSXEOLVKHG 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI :LVFRQVLQ %ROODHUW :LOOLDP 7UDQVODWRUf 7KH ([SHGLWLRQ RI 3HGUR GH 8UVXD DQG /RSH GH $JXLUUH LQ 6HDUFK RI (O 'RUDGR DQG 2PDJXD LQ 7UDQVODWHG IURP )UD\ 3HGUR 6LPRQnV 6L[WK +LVWRULFDO 1RWLFH RI WKH &RQTXHVW RI 7LHUUD )LUPH /RQGRQ +DNOX\W 6RFLHW\ %RXUULFDXG )UDQFRLV $OJXQDV &DUDFWHUVWLFDV 2ULJLQDOHV GH OD &XOWXUD 0HVWLD HQ HO 3HUX &RQWHPSRU£QHR /LPD 5HYLVWD GHO 0XVHR 1DFLRQDO %RXUULFDXG )UDQFRLV ,QGLDQ 0HVWL]R DQG &KROR DV 6\PEROV LQ WKH 3HUXYLDQ 6\VWHP RI 6WUDWLILFDWLRQ ,Q (WKQLFLW\ WKHRU\ DQG H[SHULHQFH 1DWKDQ *OD]HU DQG 'DQLHO 3 0R\QLKDQ (GV SS &DPEULGJH +DUYDUG 8QLYHUVLW\ 3UHVV &DPSRV 5REHUWD 3HVFD \ &D]D HQ XQD &RPXQLGDG 6KLSLER $PD]RQLD 3HUXDQD Of &HQVR 1DFLRQDO GH 3REODFLQ GH &HQVR 1DFLRQDO GH 3REODFLQ GH 9RO 'LUHFFLQ 1DFLRQDO GH (VWDGVWLFD /LPD 0LQLVWHULR GH +DFLHQGD \ &RPHUFLR &HQVR GH 3REODFLQ \ 9LYLHQGD GH 6H[WR &HQVR 1DFLRQDO GH 3REODFLQ /LPD 'LUHFFLQ 1DFLRQDO GH (VWDGVWLFD t &HQVRV &HQVR GH 3REODFLQ \ 9LYLHQGD GH &HQVRV 1DFLRQDOHV 9,, GH 3REODFLQ ,, GH 9LYLHQGD /LPD 'LUHFFLQ 1DFLRQDO GH (VWDGVWLFD \ &HQVRV

PAGE 378

&KDQWUH \ +HUUHUD 3 -RV +LVWRULD GH ODV 0LVLRQHV GH OD &RPSDQLD GH -HVV HQ HO 0DUDQRQ (VSDRO 0DGULG ,PSUHQWD GH $ $YULDO &LH]D GH /HQ 3HGUR GH 7KH &LYLO :DUV LQ 3HUX 7KH :DU RI /DV 6DOLQDV &OHPHQWV 5 0DUNKDP (G DQG 7UDQV +DNO\XW 6RFLHW\ :RUNV 6HULHV YRO /RQGRQ +DN\OXW 6RFLHW\ &RPSWH )UDQFLVFR 0DULD 2)0 9DURQHV ,OXVWUHV GH OD 2UGHQ 6HU£ILFD HQ HO (FXDGRU GHVGH OD )XQGDFLQ GH 4XLWR KDVWD 1XHVWURV 'LDV 6HJXQGD (GLFLQ 7RPR ,, 4XLWR ,PSUHQWD GHO &OHUR &RQGDPLQH & 0 GH OD %UHYH 5HODFLQ GH XQ 9LDMH DO ,QWHULRU GH OD $PHULFD 0HULGLRQDO ,Q 9LDMHV SRU $PHULFD GHO 6XU SS %LEOLRWHFD ,QGLDQD 0DGULG $JXLODU &RQJUHVV RI WKH 8QLWHG 6WDWHV 6ODYHU\ LQ 3HUX +RXVH 'RFXPHQW 1R UG &RQJUHVV UG 6HVVLRQ &RUHUD +LVWRULD GH ODV 0LVLRQHV 3DVLRQLVWDV HQ HO 3HUX /LPD ,PSUHQWD 6DQ *DEULHO &RUQHMR 0DULDQR K DQG )HOLSH GH 2VPD $UELWUDMH GH /LPLWHV HQWUH HO 3HU \ HO (FXDGRU 'RFXPHQWRV DQH[RV D OD 0HPRULD GHO 3HUX SUHn VHQWDGRV £ 6 0 (O 5HDO $UELWUR 7RPR ,,, 0DGULG ,PSUHQWD GH ORV KLMRV GH 0 +HUQDQGH] 'HOJDGR &DUORV 1RWDV 6REUH 1RYLOGDG 6RFLDO HQ HO 3HU (MHUFLFLR 'HQHYDQ 6RFLROJLFR 6REUH HO $UULELVPR HQ HO 3HU 6DQWLDJR &KLOHf 8QLYHUVLGDG &DWOLFD GH &KLOH &HQWUR ,QWHUGLVFLSOLQDULR GH 'HVDUUROOR 8UEDQR \ 5HJLRQDO :LOOLDP 0 (GLWRU 7KH 1DWLYH 3RSXODWLRQ RI WKH $PHULFDV LQ 0DGLVRQ 7KH 8QLYHUVLW\ RI :LVFRQVLQ 3UHVV

PAGE 379

'RENLQ GH 5LRV 0DU OHQD 9LVLRQDU\ 9LQH SV\FKHGHOLF KHDOLQJ LQ WKH 3HUXYLDQ DPD]RQ 6DQ )UDQFLVFR &KDQGOHU 3XEn OLVKLQJ &RPSDQ\ 'RE\QV +HQU\ ( (VWLPDWLQJ $ERULJLQDO $PHULFDQ 3RSXOD WLRQ DQ DSSUDLVDO RI WHFKQLTXHV ZLWK D QHZ KHPLVSKHULF HVWLPDWH &XUUHQW $QWKURSRORJ\ 'RE\QV +HQU\ ( DQG 3DXO / 'RXJKW\ 3HUX D FXOWXUDO KLVWRU\ 1HZ
PAGE 380

*RGHOLHU 0DXULFH 3HUVSHFWLYHV LQ 0DU[LVW $QWKURSRORJ\ 5 %UDLQ 7UDQVODWRU 1HZ
PAGE 381

,]DJXLUUH 3 )U %HUQDGLQR +LVWRULD GH ODV 0LVLRQHV )UDQFLVFDQDV \ 1DUUDFLQ GH ORV 3URJUHVRV GH OD *HRJUDILD HQ HO 2ULHQWH GHO 3HUX UHODWRV RULJLQDOHV \ SURGXFFLRQHV HQ OHQJXDV LQGLJHQDV GH YDULDV PLVLRQHURV /LPD 7DOOHUHV 7LSRJU£ILFRV GH OD 3HQQLWHQFLDULD -LPHQH] GH (VSDGD 0DUFRV (GLWRU 5HODFLRQHV *HRJU£ILFDV GH ,QGLDV 3HUX 9RO 0DGULG 7LSRJUDILD GH ORV +LMRV GH 0* +HUQDQGH] -RKQVRQ $OLHQ 7LPH $OORFDWLRQ LQ D 0DFKLJXHQJD &RPPXQLW\ 8QSXEOLVKHG 3DSHU &ROXPELD 8QLYHUVLW\ -RXDQHQ -RV +LVWRULD GH OD &RPS£QLD GH -HVXV HQ OD $QWLJXD 3URYLQFLD GH 4XLWR f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f /DUUDEXUH \ &RUUHD &DUORV &ROHFFLQ GH /H\HV 'HFUHWRV 5HVROXFLRQHV L 2WURV 'RFXPHQWRV 2ILFLDOHV 5HIHUHQWHV DO 'HSDUWDn PHQWR GH /RUHWR /LPD ,PSUHQWD GH /D 2SLQLQ 1DFLRQDO /DUVRQ 0DJDOL 6DUIDWWL DQG $ ( %HUJPDQ 6RFLDO 6WUDWLILFDWLRQ LQ 3HUX %HUNHOH\ ,QVWLWXWH RI ,QWHUQDWLRQDO 6WXGLHV 8QLYHUVLW\ RI &DOLIRUQLD

PAGE 382

/DWKUDS 'RQDOG : 7KH 8SSHU $PD]RQ /RQGRQ 7KRPDV DQG +XGVRQ /HY\ 0DULRQ -U 0RGHUQL]DWLRQ /DWHFRPHUV DQG 6XUYLYRUV 1HZ
PAGE 383

0HGLQD -RVH 7RULELR 'LVFRYHU\ RI WKH $PD]RQ %HUWUDP /HH 7UDQVODWRU $PHULFDQ *HRUJUDSKLFDO 6RFLHW\ 6SHFLDO 3XEOLFDWLRQ 1R 1HZ
PAGE 384

1RWLFLDV $XWHQWLFDV 1RWLFLDV $XWHQWLFDV GHO )DPRVR 5LR 0DUDQRQ \ 0LVLQ $SRVWOLFD GH OD &RPSDQLD GH -HVXV GH OD 3URY GH 4XLWR HQ ORV 'LODWDGRV %RVTXHV GH 'LFKR 5LR (QVFULELDOHV SRU ORV DQRV GH XQ PLVLDQHUR GH OD PLVPD FRPSDQLD \ ODV SXEOLFD DKRUD SRU OD SULPHUD YH] 0DUFRV -LPHQH] GH OD (VSDGD 0DGULG %ROHWQ GH OD 6RFLHGDG *HRJU£ILFR 0DGULG 9ROV 1XQH] GHO 3UDGR 2VFDU $VSHFWRV (FRQPLFRV GHO 9LUX XQD &RPXQLGDG GH OD &RVWD 1RUWH GHO 3HUX &X]FR 3DUGR \ %DUUHGD -RV $OHJDWR GHO 3HU HQ HO $UELWUDMH VREUH VXV /LPLWHV FRQ HO (FXDGRU 3UHVHQWDGR £ 60 (O $UELWUR /D 5HLQD 5HJHQWH GH (VSDD 0DGULG ,PSUHQWD GH ORV KLMRV GH 0* +HUQ£QGH] 3LD]]D /DUUDRQJR $OYDUR DQG $EHODUGR 9LOGRVR %DFD 3HVTXHUD HQ OD 6HOYD GHO 3HUX 3RQHQFLD SUHVHQWDGD DO HU &RQJUHVR 1DFLRQDO GH *HRJUDID /LPD 3LD]]D LV -HIH 'LYLVLQ +LOGURELRORJLD DQG 9LOGRVR LV -HIH 'SWR ,QYHVWLJDFLQ +LUUR ELROJLFD DW ,PDUSH LQ &DOODR 7KLV VWXG\ PD\ EH IRXQG LQ WKHLU OLEUDU\ 7KH\ KDYH D GLYLVLRQ RQ FRQWLn QHQWDO ZDWHUVf 2OLYHU6PLWK $QWKRQ\ 7KH 3LVKWDFR LQVWLWXWLRQDOL]HG IHDU LQ KLJKODQG 3HUX -RXUQDO RI $PHULFDQ )RONORUH 3RODQ\L .DUO 7KH (FRQRP\ DV ,QVWLWXWHG 3URFHVV ,Q 7UDGH DQG 0DUNHW LQ WKH (DUO\ (PSLUHV 3RODQ\L & : $UHQVEHUJ DQG + : 3HDUVRQ (GLWRUV SS 1HZ
PAGE 385

5RPDQRII 6WHYHQ QG 3HUVRQDO &RPPXQLFDWLRQ 6DHQ] 0RLVV 6REUH HO ,QGLR 3HUXDQR \ VX ,QFRUSRUDFLQ DO 0HGLR 1DFLRQDO 6HFUHWDULD GH (GXFDFLQ 3XEOLFD 0H[LFR 6DKOLQV 0DUVKDOO 6WRQH $JH (FRQRPLFV &KLFDJR $OGLQH 3XEOLVKn LQJ &RPSDQ\ 6DQ 5RPDQ -HVXV 3HUILOHV +LVWULFRV GH OD $PD]RQLD 3HUXDQD /LPD (GLFLRQHV 3DXOLQDVf§3XEOLFDFLRQHV &(7$ 6LHYHUV :LOKHLP *HRJUDILD GH %ROLYLD \ 3HUX %DUFHORQD 6LQJOHWRQ*DWHV 3HWHU DQG 0DXULFH *LURGLDV 7KH %ODFN 'LDULHV RI 5RJHU &DVHPHQW 1HZ
PAGE 386

6XS\V£XD 6XS\VDXD D GRFXPHQWDU\ UHSRUW RQ WKH FRQGLn WLRQV RI ,QGLDQ SHRSOHV LQ %UD]LO %HUNHOH\ ,QGLJHQD ,QF DQG $PHULFDQ )ULHQGV RI %UD]LO 7HVVPDQ 'LH ,QGLDQHU 1RUGRVW 3HUXV +DPEXUJ )ULHGULFKVHQ GH *UX\WHU XQG &R 7VFKRSLN +DUU\ -U 2Q WKH ,GHQWLILFDWLRQ RI WKH ,QGLDQ LQ 3HUX ,Q $FFXOWXUDWLRQ LQ WKH $PHULFDV 6RO 7D[ (GLWRU &KLFDJR 8QLYHUVLW\ RI &KLFDJR 3UHVV 8JDUWH 5XEHQ 9DUJDV 6 'H OD &RQTXLVWD £ OD 5HSEOLFD QG (Gf /LPD 3DFLILF 3UHVV 6$ 6RPH QHZ GRFXPHQWV DERXW 0D\QDV /D 'LFHVLV GH 0D\QDV SXEOLVKHG LQ WKLV ZRUN IURP SS LQFOXGH D IHZ OHWWHUV IURP ) 5HTXHQD GHQRXQFLQJ WKH DEDQGRQPHQW RI SXHEORV E\ )UDQFLVFDQV EHWZHHQ DQG 5DQJHOnV OHWWHUV DERXW SUREOHPV ZLWK WKH 2FRSDQV DUH DOVR IRXQG KHUHf 8ULDUWH 3 0DQXHO 6 'LDULR GH XQ 0LVLRQHUR GH 0DLQDV &RQVHMR 6XSHULRU GH ,QYHVWLJDFLRQHV &LHQWLILFDV ,QVWLWXWR 6DQWR 7RULELR GH 0RJURYHMR 0DGULG %LEOLRWHFD 0LVLRQDOLD +LVS£QLFD 9RO 8ULDUWH ZDV ERUQ LQ DUULYHG LQ 4XLWR LQ VHQW WR WKH HQFDEHOODGRV LQ DIWHU 3 )UDQFLVFR 5HDO ZDV NLOOHG f ZDV WKH ODVW RI WKH -HVXLWV LQ 0DLQDV ,Q KH ZDV DWWDFKHG WR 2PDJXDV +H ZURWH WKLV GLDU\ LQ LQ ,WDO\ DIWHU WKH H[SXOVLRQ 8ULDUWH /RSH] /XLV 0 3REODFLRQHV 1DWLYDV GH OD $PD]RQLD 3HUXDQD $PD]RQLD 3HUXDQD /LPDf OOf 9DOFDUFHO &DUORV $ (O 3URFHVR GHO 3XWXPD\R /LPD ,PSUHVWD &RPHUn FLDO +RUDFLR /D 5RVD \ &LD

PAGE 387

9DUHVH 6WHIDQR 7KH )RUHVW ,QGLDQV LQ WKH 3UHVHQW 3ROLWLFDO 6LWXDWLRQ RI 3HUX ,:*,$ 'RFXPHQW &RSHQn KDJHQ ,QWHUQDWLRQDO :RUN *URXS IRU ,QGLJHQRXV $IIDLUV 9DUQKDJHQ $GROIR GH &DUWD GH 'LRJR 1XQHV HVFULSWD D -RDR ,,, DFHUFD GR GHVFREULPHQWR GH VHUWRHV DRQGH SRGLD FKHJDU DWUHYHVVDQGR D WLHUUD GH 6 9LFHQWH 3URYLQFLD GH 6 3DXORf 5HYLVWD 7ULPHQVDO GR ,QVWLWXWR +LVWULFR H *HRJUDSKLFR %UD]LOHLUR &LWHG LQ :HUOLFK f 7KLV ZRUN WUHDWV RI WKH WULS PDGH E\ RQH RI 0HUFDGLOORnV H[SHGLWLRQV DIWHU KH KDG VHWWOHG KLPVHOI RQ WKH XSSHU 0DUDQRQ 7KH VDLORU 1XQHV UHSRUWHG WKDW KH KDG JRQH GD\V GRZQVWUHDP DQG KDG DUULYHG DW WKH ODQGV RI PDFKLIDOR 7KLV ZDV WKUHH \HDUV EHIRUH 2UHOODQD VDZ WKH $PD]RQ 9DVTXH] )UDQFLVFR 5HODFLQ GH WRGR OR TXH VXFHGL HQ OD MRUQDGD GH 2PDJXD \ 'RUDGR KHFKD SRU HO JREHUQDGRU 3HGUR GH 2UVXD )HOLFLDQR 5DPLUH] GH $UHOODQR ( 3XEOLFDFLRQHV GH OD 6RFLHGDG GH %LEOLILORV (VSDFLOHV 9RO 0DGULG ,PSUHQWD GH 0LJXHO *LQHVWD $YHQFLR $VL HV OD 6HOYD HVWXGLR PRQRJU£ILFR GH OD DPD]RQLD QRURULHQWDO GHO 3HU 0D\QDV /RUHWR 5HTXHQD /LPD 6DQ 0DUWL 9LOODUHMR $YHQFLR /D 6HOYD \ HO +RPEUH HVWXGLR DQWURSRFRVPRORJLFR GHO DERULJHQ DPD]QLFR /LPD (GLWRULDO $XVRQD :DJOH\ &KDUOHV DQG 0 +DUULV 0LQRULWLHV LQ WKH 1HZ :RUOG VL[ FDVH VWXGLHV 1HZ
PAGE 388

:KLWH /HVOLH 7KH 6FLHQFH RI &XOWXUH 1HZ
PAGE 389

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

PAGE 390

, 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 GHJUHH RI 'RFWRU RI 3KLORVRSK\ L+L DM-,YR n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

PAGE 391

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

PAGE 392

81,9(56,7< 2) )/25,'$


UNIVERSITY OF FLORIDA
3 1
262 08667 030