This is from Dr. Franz Josef Strauss, dated March 29, 1988.
Dear Mr. Moores:
Thank you for your letter of February 3rd, 1988, in which you address the issue of an Airbus Industrie deficiency guarantee to support the financing of a potential A320 sale to Air Canada.
As to the information received from Deutsche Airbus GmbH, the German partner in the Airbus programme, the discussions between Airbus Industrie and Air Canada with regard to financing have well progressed, but have not yet advanced to a stage, where Airbus Industrie has asked their shareholders for formal approval for an Airbus Industrie manufacturer's guarantee. So in fact your information that the German partner “has turned down a request” may be based on some misunderstanding.
As I have been further informed, financing discussions between Airbus Industrie and Air Canada now are concentrating on a limited residual value guarantee to be granted in addition to export credits. This indeed seems to confirm worthiness of Air Canada by a deficiency guarantee which normally is used to support sales to weaker countries.
Please be assured that there is no reason to put doubt on the preparedness of the German partner to support any Airbus sale to Air Canada in the same way as the other Airbus partners.
Yours sincerely,
Franz Josef Strauss
This is a copy.
So that's number one. I think it makes it very clear, contrary to what we have heard so far and know so far, that this is the relationship between GCI and Airbus.
Now I can read you a letter from GCI to me in January 9, 1991.
Dear Karlheinz:
Please find enclosed the original document received from court, figures obtained from government regarding expenditures to MBB. Some calculations I have made, by definition, have to be approximate.
Best regards,
Frank Moores.
That meant the coast guard helicopters, but MBB in Munich had nothing directly to do with that. It was a Canadian company in Fort Erie. But in order to get sufficient funds from MBB to Frank Moores for other business, they needed the project. This may sound somehow strange to you, but the minister of revenue from Bavaria is always the chairman of MBB, Messerschmitt-Bölkow-Blohm, because they are the major shareholders.
So exactly this minister and his ministry allowed all the so-called helpful donations for projects. This was much more a matter to satisfy the German minister of finance from MBB's side to deduct the expenditure to GCI than a matter of bribing somebody--seeing it as a mere matter with the Germans.
I also give you this document, with all the hand-written calculations from Frank Moores. There is also a commission breakdown from MBB towards GCI coast guard.
All these documents are known, by the way, by the German government. So I'm ready to give them to you.