1. 5DXO +LOEHUJ
DQG KLV 6WDQGDUG :RUN
RQ WKH ³+RORFDXVW´
5DXO +LOEHUJ
DQG KLV 6WDQGDUG :RUN
RQ WKH ³+RORFDXVW´
5DXO +LOEHUJ
DQG KLV 6WDQGDUG :RUN
RQ WKH ³+RORFDXVW´
7KH*LDQW7KH*LDQW7KH*LDQW
³,W ZDV 3URIHVVRU $UWKXU %XW] LQ KLV +RD[ RI WKH 7ZHQWLHWK &HQWXU
ZKR SURSRVHG WKH LPDJH RI WKH KRORFDXVW DV D JLDQW ZLWK IHHW RI FOD %
GUDZLQJ RQ WKH DQDOVHV RI UHYLVLRQLVW KLVWRULDQV DQG LQFLVLYHO SRLQWLQJ
RXW LQFRQVLVWHQFLHV LQ WKH GRFXPHQWDU SKVLFDO DQG µHHZLWQHVV¶
WHVWLPRQ -UJHQ *UDI ¿QGV LQ WKH SUHVHQW VWXG WKDW DOWKRXJK WKH
PDMRU SRUWLRQ RI 5DXO +LOEHUJ¶V EHQFKPDUN ZRUN UHVWV RQ UHOLDEOH
VRXUFHV LWV WLWOH VKRXOG KDYH EHHQ 7KH 3HUVHFXWLRQ RI WKH (XURSHDQ
-HZV UDWKHU WKDQ 7KH 'HVWUXFWLRQ RI WKH (XURSHDQ -HZV +LOEHUJ E
VHOHFWLQJ DQ LQDFFXUDWH WLWOH KDV VXSSRUWHG 3URIHVVRU %XW]¶ QRWLRQ WKDW
WKH +RORFDXVW VWRU KDV IHHW RI FOD´
3URI 'U RVWD =DYHUGLQRV 8QLYHUVLW RI 1DWDO 6RXWK $IULFD UWG
³$ VLJQLIiFDQW PRQRJUDSK IURP WKH LQGHIDWLJDEOH -UJHQ *UDI²DQG
HW DQRWKHU FRQWULEXWLRQ WR WKH ERG RI ZRUN DW WKH FHQWHU RI KRORFDXVW
UHYLViRQLVP 7KDW KH ZULWHV FKDUPLQJly WRR LV DQ DGGLWiRQDO GLYLGHQG´
$QGUHZ *UD RS (GLWRU 7KH %DUQHV 5HYLHZ
³7KLV ERRN KDV JUHDW HGXFDWLRQDO YDOXH SURYLGHG LW LV VWXGLHG UDWKHU
WKDQ PHUHO UHDG
6RPH PD ZRQGHU ZK 5DXO +LOEHUJ¶V HDU ROG ZRUN 7KH 'HVWUXFWLRQ
RI WKH (XURSHDQ -HZV WRGD PHULWV D ERRN OHQJWK FULWLTXH 7KH PDLQ
UHDVRQV DUH WKDW WKH µ+RORFDXVW¶ OHJHQG KDV QRW FKDQJHG YHU PXFK LQ
WKH LQWHULP DQG WKDW +LOEHUJ SUHVHQWV WKH VXEMHFW FRPSUHKHQVLYHO LQ D
IRUPDO DFDGHPLF VWOH WKDW LQYLWHV FULWLFDO H[DPLQDWLRQ
*UDI GRHV OLNHZLVH ,I WKH UHDGHU ZLOO WDNH WKH HIIRUW WR H[DPLQH WKH VRXUFHV
WKDW +LOEHUJ DQG *UDI XVH KH ZLOO GHULYH ¿UVW D UHOLDEOH SUHVHQWDWLRQ
RI KRZ WKH µ+RORFDXVW¶ DOOHJHGO WUDQVSLUHG DQG VHFRQG D SHUKDSV
VKRFNLQJ UHYHODWLRQ RI WKH VKRGG HYLGHQFH WKDW WKH OHJHQG LV EDVHG
RQ DQG WKLUG D VSHFL¿F LPSRUWDQW DSSOLFDWLRQ RI D JRRG SDUW RI WKH
UHYLVLRQLVW VFKRODUVKLS RI WKH SDVW TXDUWHU FHQWXU
7KH UHDGHU ZLOO WKHQ XQGHUVWDQG WKH EDVLV IRU WKH WLWOH FKRVHQ IRU
WKLV ERRN´
3URI 'U $UWKXU 5 %XW] 1RUWKZHVWHUQ 8QLYHUVLW (YDQVWRQ ,OOLQRLV
-UJHQ*UDI‡7KH*LDQW:LWK)HHWRIOD
:LWK )HHW RI OD:LWK )HHW RI OD:LWK )HHW RI OD
-UJHQ *UDI-UJHQ *UDI-UJHQ *UDI
,661 ±
+2/2$867 +DQGERRNV 6HULHV
9ROXPH 7KUHH
7KHVHV 'LVVHUWDWLRQV 3UHVV
32 %R[ DSVKDZ $/ 86$
´6XSHUILFLDOLW
LV
WKH
P
DMRU
GLVHDVH
LQ
WKH
ILHOG
RI
+
RORFDXVWVWXGLHVµ
5DXO+
LOEHUJ

2. -UJHQ *UDI
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7KH *LDQW :LWK )HHW RI OD

3. -UJHQ *UDI
7+( *,$17
:,7+ )((7 2) /$
5DXO +LOEHUJ
DQG KLV 6WDQGDUG :RUN
RQ WKH µ+RORFDXVWµ
7KHVHV 'LVVHUWDWLRQV 3UHVV
DSVKDZ

4. +2/2$867 +DQGERRNV 6HULHV 9RO
*UDI -UJHQ
7KH *LDQW :LWK )HHW RI OD
5DXO +LOEHUJ DQG KLV 6WDQGDUG :RUN RQ WKH µ+RORFDXVW¶
7UDQVODWHG E 0LFKDHO +XPSKUH
RYHU *HUPDU 5XGROI
DSVKDZ $ODEDPD

5. 7KHVHV 'LVVHUWDWLRQV 3UHVV 0DUFK
,6%1
,661
2ULJLQDO *HUPDQ HGLWLRQ
*UDI -UJHQ
5LHVH DXI W|QHUQHQ )‰HQ
5DXO +LOEHUJ XQG VHLQ 6WDQGDUGZHUN EHU GHQ µ+RORFDXVW¶
DVWOH +LOO 3XEOLVKHUV 2FWREHU
,6%1
‹ *HUPDQ HGLWLRQ E -UJHQ *UDI
‹ ILUVW (QJOLVK HGLWLRQ
E 7KHVHV 'LVVHUWDWLRQV 3UHVV
32 %R[ DSVKDZ $ODEDPD 86$
%RG WH[W SULQWHG LQ 7LPHV 1HZ 5RPDQ SW 7KURXJKRXW WKLV ERRN GRXEOH TXRWDWLRQ
PDUNV ³´

6. DUH XVHG IRU ³TXRWDWLRQV´ VHW DOZDV LQ LWDOLFV

7. VLQJOH PDUNV µ¶

8. IRU RWKHUZLVH
QRQHPSKDVL]HG WH[W RI µVRFDOOHG¶ DQG µVRWRVD¶ FKDUDFWHU H[FHSW ZKHQ XVHG IRU TXRWD
WLRQV LQVLGH TXRWDWLRQV

9. 4XRWDWLRQV DUH LQWURGXFHG RQFH ZLWK D VLQJOH ³PDUN DQG HQGHG ZLWK
D ´PDUN WR EUHDN ZLWK WKH $PHULFDQ WUDGLWLRQ WR LQWURGXFH HYHU SDUDJUDSK LQ D TXRWDWLRQ
ZLWK D ³PDUN EXW QHYHU FORVLQJ LW ZKLFK VWULFWO VSHDNLQJ LV DQ ³XQWHUPLQDWHG VWULQJ HU
URU´

10. (QWLUH VHQWHQFHV RU SDUDJUDSKV RI TXRWHG WH[W DUH UHQGHUHG LQ SW IRQW DQG OHIW LQGHQ
WDWLRQ $Q DGGLWLRQ WR TXRWHG WH[W LV UHQGHUHG QRQLWDOLF DQG VXUURXQGHG E EUDFNHWV@ VR DUH
DGGHG RPLVVLRQ HOOLSVHV «@ ZKLFK FRXOG RWKHUZLVH QRW EH GLVWLQJXLVKHG IURP HOOLSVHV LQ WKH
RULJLQDO 7LWOHV RI ERRNV DQG MRXUQDOV DUH VHW LQ LWDOLFV ZLWKRXW TXRWDWLRQ PDUNV 5HIHUHQFHV
KDYH WKH RUGHU D

11. ERRNV DXWKRUV

12. HGLWRUV

13. WLWOH YROXPH@ HGLWLRQ@ SXEOLVKLQJ KRXVH@
WRZQ HDU SDJHV@ E

14. MRXUQDOV DXWKRUV

15. ³WLWOH RI DUWLFOH´@ QDPH RI MRXUQDO YROXPHLV
VXH

16. @ HDU

17. SDJHV@ LWHPV LQ EUDFNHWV RSWLRQDO

18. $OO UHIHUHQFHV WR WKH RULJLQDO (QJOLVK YHU
VLRQ RI +LOEHUJ¶V ERRN ZHUH DGGHG E WKH WUDQVODWRU

19. 7DEOH RI RQWHQWV
, ,QWURGXFWLRQ
,, *HQHUDO 5HPDUNV
RQVLVWHQW ,JQRULQJ RI 2SSRVLQJ 7KHVHV
1R 3KRWRV 1R 'HVFULSWLRQ RI WKH +RPLFLGDO *DV KDPEHUV
DQG *DV 9DQV
'LVFUHSDQF %HWZHHQ WKH 7LWOH DQG WKH RQWHQWV RI WKH :RUN
,,, 5HPDUNV RQ WKH )LUVW 9ROXPH
,9 7KH /DFN RI 'RFXPHQWV RQ $QQLKLODWLRQ 3ROLF
DQG LWV RQVHTXHQFHV IRU WKH 2UWKRGR[ +LVWRULDQV
³1R 'RFXPHQWV +DYH 6XUYLYHG´
,QWHQWLRQDOLVWV DQG )XQFWLRQDOLVWV
5DXO +LOEHUJ¶V (UURUV DQG RQIXVLRQV
D :DV 7KHUH WKH 2PLQRXV +LWOHU 2UGHU RU 1RW
E ³1R 6SHFLDO $JHQF« 1R 6SHFLDO %XGJHW´
F 7KH 0WK RI WKH RGH /DQJXDJH
G +LWOHU 4XRWDWLRQ DV µ3URRI¶ IRU WKH 0DVV 0XUGHU
H 7ZR ,QVROXEOH 3UREOHPV
I ³$Q ,QFUHGLEOH 0HHWLQJ RI 0LQGV´
9 7KH 0DVVDFUHV %HKLQG WKH (DVWHUQ )URQW
7KH ,QLWLDO 6LWXDWLRQ
+LOEHUJ¶V 9HUVLRQ RI *HUPDQ -HZLVK 3ROLF
LQ WKH 2FFXSLHG 6RYLHW 7HUULWRULHV
2Q WKH /LNHOLKRRG RI +LOEHUJ¶V 'HVFULSWLRQ
D 7KH ODLPHG 1XPEHUV RI 9LFWLPV RI WKH (LQVDW]JUXSSHQ
E 7KH 5HIXJHHV 'ULIWLQJ EDFN LQWR WKH LWLHV
F 7KH 3XUSRVH DQG WKH RXUVH RI WKH *KHWWRL]DWLRQ
1R 9DOLG (YLGHQFH IRU WKH ODLPHG $SSUR[LPDWHO
0LOOLRQ 0XUGHUHG -HZV %HKLQG WKH (DVWHUQ )URQW
+LOEHUJ¶V 'RFXPHQWDU (YLGHQFH
+LOEHUJ¶V µ$IILGDYLWV¶ DQG 2WKHU :LWQHVV (YLGHQFH
+LOEHUJ¶V ,QYHQWHG µ6KRRWLQJ RI %DOWLF DPS ,QPDWHV¶
:KDW 5HDOO +DSSHQHG WR WKH -HZV LQ WKH
2FFXSLHG 6RYLHW 7HUULWRULHV

20. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
9, 7KH 'HSRUWDWLRQV
7KH ,QLWLDO 6LWXDWLRQ
7KH 3XUSRVH RI WKH 'HSRUWDWLRQV
/DERU 'HSORPHQW YHUVXV ([WHUPLQDWLRQ
+LOEHUJ¶V ,QYHQWHG 0DVV 6KRRWLQJV LQ *DOLFLD
$V 6KHHS WR WKH 6ODXJKWHU«
3HRSOH µ*DVVHG¶ LQ $XVFKZLW] 7XUQ XS LQ 6WXWWKRI
9,, 7KH .LOOLQJ HQWHUV
7KH ,QLWLDO 6LWXDWLRQ
+LOEHUJ¶V ,PDJLQDU 1XPEHU RI 9LFWLPV
RI WKH µH[WHUPLQDWLRQ FDPSV¶
.LOOLQJ :HDSRQV DQG 5HPRYDO RI RUSVHV
LQ WKH µH[WHUPLQDWLRQ FDPSV¶ DV 7ROG E +LOEHUJ
D 7KH µ3XUH ([WHUPLQDWLRQ DPSV¶
E 0DMGDQHN
F $XVFKZLW]%LUNHQDX
G 7KH +RORFDXVW 3RSH ZLWK WKH +HDOWK 6WRPDFK
+LOEHUJ¶V 0HWKRGRORJ 7KH 5HYDOXDWLRQ RI DOO 9DOXHV
D +LOEHUJ¶V 6WDU :LWQHVVHV
E +LOEHUJ¶V )DYRULWH -HZLVK :LWQHVV )LOLS 0OOHU
+LOEHUJ¶V 'HVFULSWLRQ RI WKH $QQLKLODWLRQ RI WKH -HZV
LQ WKH /LJKW RI 7HFKQRORJ DQG 7R[LFRORJ
D 'LHVHO 0RWRUV DV D .LOOLQJ :HDSRQ
E 5HPRYDO RI RUSVHV LQ WKH µ3XUH ([WHUPLQDWLRQ DPSV¶
DVH 6WXG %HåìHF
F =NORQ % DV D .LOOLQJ :HDSRQ
G 7KH 3UDFWLFDO RXUVH RI WKH *DVVLQJV LQ UHPDWRULHV ,, DQG ,,,
LQ %LUNHQDX DV 7ROG E +LOEHUJ
H 7KH ODLPHG ,QFLQHUDWLRQ RI 6RPHWLPHV RUSVHV 'DLO
LQ %LUNHQDX
9,,, +LOEHUJ¶V 6WDWLVWLFV RQ -HZLVK 9LFWLPV
$QDWRP RI $QRWKHU )UDXG
7KH µ7KUHH DWHJRULHV RI 9LFWLPV¶
+XQJDU
3RODQG
7KH 6RYLHW 8QLRQ
6XPPDU
,; +LOEHUJ¶V 'HEDFOH DW WKH )LUVW =QGHO 7ULDO
; RQFOXVLRQV
7KH 2SSRQHQWV
6RXUFHV
,QGH[ RI 1DPHV

21. ³RX VDZ 2 NLQJ DQG EHKROG D JUHDW LPDJH 7KLV
LPDJH PLJKW DQG RI H[FHHGLQJ EULJKWQHVV VWRRG EHIRUH RX
DQG LWV DSSHDUDQFH ZDV IULJKWHQLQJ 7KH KHDG RI WKLV LPDJH
ZDV RI ILQH JROG LWV EUHDVW DQG DUPV RI VLOYHU LWV EHOO DQG
WKLJKV RI EURQ]H LWV OHJV RI LURQ LWV IHHW SDUWO RI LURQ DQG
SDUWO RI FOD $V RX ORRNHG D VWRQH ZDV FXW RXW E QR KXPDQ
KDQG DQG LW VPRWH WKH LPDJH RQ LWV IHHW RI LURQ DQG FOD DQG
EURNH WKHP LQ SLHFHV WKHQ WKH LURQ WKH FOD WKH EURQ]H WKH
VLOYHU DQG WKH JROG DOO WRJHWKHU ZHUH EURNHQ LQ SLHFHV DQG
EHFDPH OLNH WKH FKDII RI WKH VXPPHU WKUHVKLQJ IORRUV DQG WKH
ZLQG FDUULHG WKHP DZD VR WKDW QRW D WUDFH RI WKHP FRXOG EH
IRXQG %XW WKH VWRQH WKDW VWUXFN WKH LPDJH EHFDPH D JUHDW
PRXQWDLQ DQG ILOOHG WKH ZKROH HDUWK´
± 'DQLHO 569

22. , ,QWURGXFWLRQ
$FFRUGLQJ WR WKH RIILFLDO YHUVLRQ RI KLVWRU GXULQJ WKH 6HFRQG :RUOG
:DU WKH *HUPDQ 1DWLRQDO 6RFLDOLVWV FDUULHG RXW D PDVV PXUGHU DJDLQVW WKH
-HZLVK SRSXODWLRQ WKDW ZDV XQSDUDOOHOHG LQ LWV PRQVWURXVQHVV DQG LWV VV
WHPDWLF UXWKOHVVQHVV 0DQ PLOOLRQV RI -HZV ZH DUH WROG ZHUH WDNHQ IURP
*HUPDQUXOHG ODQGV DQG SDFNHG RII WR µH[WHUPLQDWLRQ FDPSV¶ LQ WKH 3ROLVK
WHUULWRULHV DQG WKHUH NLOOHG PRVWO LQ JDV FKDPEHUV EXW VRPH LQ JDV YDQV
:H DUH DOVR WROG WKH *HUPDQV PDVVDFUHG DQ LPPHQVH QXPEHU RI -HZV
EHKLQG WKH HDVWHUQ IURQW 7KH WRWDO QXPEHU RI YLFWLPV RI JDVVLQJ RU VKRRWLQJ
DV ZHOO DV RI WKRVH ZKR GLHG IURP GLVHDVH H[KDXVWLRQ KXQJHU RU RWKHU FDXVH
VXSSRVHGO UXQV WR ILYH RU VL[ PLOOLRQ
7KLV FODLPHG XQLTXH JHQRFLGH LV XVXDOO ODEHOHG ZLWK WKH ZRUG µ+ROR
FDXVW¶ ZKLFK FRPHV IURP WKH *UHHN ZRUG yλRκαυστyV IRU ³HQWLUHO
EXUQHG´ DQG ZKLFK KDV VSUHDG WKURXJKRXW DQG EHRQG WKH $QJOR6D[RQ
ODQJXDJH GRPDLQ VLQFH WKH UHOHDVH RI WKH 86 PRWLRQ SLFWXUH RI WKH VDPH
QDPH LQ
7KH YHUVLRQ RI WKH IDWH RI WKH -HZV GXULQJ WKH 6HFRQG :RUOG :DU MXVW
VXPPDUL]HG FDQ EH IRXQG LQ DOO WKH GLFWLRQDULHV DQG KLVWRU ERRNV RI WKH
:HVWHUQ ZRUOG ,W LV WDNHQ DV D[LRPDWLF LQ DQ SXEOLF GLVFXVVLRQ RQ WKH
µ+RORFDXVW¶ 'HYLDWLRQ IURP WKLV YHUVLRQ LV GLVFRXUDJHG 'LVVHQWLQJ YRLFHV
DUH VWLOOHG E D SRZHUIXO PHGLD FHQVRUVKLS DQG LQ PDQ (XURSHDQ VWDWHV
WKH DUH VXSSUHVVHG ZLWK SROLFHVWDWH WHUURU WDFWLFV

23. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
,Q WKH ODVW IHZ GHFDGHV D YDVW OLWHUDWXUH RQ WKH µ+RORFDXVW¶ KDV
DSSHDUHG EXW WKHUH LV JHQHUDO DJUHHPHQW WKDW WKHUH LV RQH ZRUN ZKLFK FDQ EH
UHJDUGHG DV WKH VWDQGDUG ZRUN RQ WKH VXEMHFW 5DXO +LOEHUJ¶V 7KH 'HVWUXF
WLRQ RI WKH (XURSHDQ -HZV
%RUQ LQ 9LHQQD LQ WKH -HZ +LOEHUJ HPLJUDWHG WR WKH 8QLWHG
6WDWHV ZLWK KLV SDUHQWV LQ ,Q KH MRLQHG WKH $PHULFDQ $UP ,Q
KH EHJDQ WR VWXG WKH TXHVWLRQ RI WKH GHVWLQ RI WKH -HZV XQGHU WKH
1DWLRQDO 6RFLDOLVW UHJLPH ,Q WKH HDUV KH ZRUNHG LQ WKH )HGHUDO
'RFXPHQWDWLRQ HQWHU DW $OH[DQGULD 9LUJLQLD ZKHUH KLV MRE ZDV WR HYDOX
DWH FDSWXUHG *HUPDQ GRFXPHQWV ,Q KH ZDV DZDUGHG D 0DVWHU¶V GHJUHH
LQ 3ROLWLFDO 6FLHQFH DQG LQ WKH 'RFWRU¶V GHJUHH LQ /DZ $V LV WKH FDVH
ZLWK PRVW RWKHU DXWKRUV ZKR KDYH GHDOW ZLWK WKH µ+RORFDXVW¶ KH LV QRW D KLV
WRULDQ E SURIHVVLRQ +RZHYHU IRU PDQ HDUV DW WKH 8QLYHUVLW RI 9HUPRQW
LQ DGGLWLRQ WR ,QWHUQDWLRQDO 5HODWLRQV DQG 86 )RUHLJQ 3ROLF KH KDV WDXJKW
RQ WKH KLVWRU RI WKH -HZV GXULQJ WKH 6HFRQG :RUOG :DU
7KH 'HVWUXFWLRQ RI WKH (XURSHDQ -HZV ILUVW DSSHDUHG LQ DQG ZDV
UHSULQWHG XQFKDQJHG LQ DQG ,Q D ³UHYLVHG DQG GHILQLWLYH´
HGLWLRQ ZLWK D IHZ FKDQJHV IROORZHG $PD]LQJO WKH FRPSOHWH ZRUN ZDV
QRW SXEOLVKHG LQ *HUPDQ XQWLO DQG WKHQ RQO E D VPDOO SXEOLVKHU
2OOH DQG :ROWHU LQ %HUOLQ

24. ,W ZDV FDOOHG 'LH 9HUQLFKWXQJ GHU HXURSlLVFKHQ
-XGHQ :H ZLOO XVH WKH WKUHHYROXPH HGLWLRQ SXEOLVKHG 0D E )LVFKHU
7DVFKHQEXFK 9HUODJ LQ )UDQNIXUW EDVHG RQ WKH ³GHILQLWLYH´ (QJOLVK YHUVLRQ
RI
+LOEHUJ¶V VWXG RQ WKH µ+RORFDXVW¶ FODLPV WR EH WKH XQULYDOOHG EHVW
DQG PRVW H[KDXVWLYH ZRUN RI LWV NLQG 7KLV LV PDGH XQPLVWDNDEO FOHDU LQ
WKH LQWURGXFWLRQ WR WKH *HUPDQ HGLWLRQ RI WKH ZRUN
³,I WKH SKUDVH µVWDQGDUG ZRUN¶ KDV DQ PHDQLQJ DW DOO +LOEHUJ¶V
IDPRXV FRPSUHKHQVLYH KLVWRU RI WKH +RORFDXVW PXVW EH FRQVLGHUHG DV VXFK
«@ 7KH WKHPH RI WKLV ZRUN LV WKH PDOHIDFWRUV WKH SODQ WKH PHWKRG RI RSHU
DWLRQ DQG WKH RSHUDWLRQ LWVHOI :LWK WKH µFRROQHVV DQG SUHFLVLRQ¶ ZKLFK FKDU
DFWHUL]HV WKH JUHDW KLVWRULDQV 6GGHXWVFKH =HLWXQJ

25. +LOEHUJ WUDFHV WKH
LQYROYHPHQW DQG SDUWLFLSDWLRQ RI WKH UXOLQJ HOLWHV LQ WKH JRYHUQPHQW LQ
LQGXVWU DQG WKH DUPHG IRUFHV LQ WKH GHVWUXFWLRQ RI WKH -HZV 7KH IXQFWLRQDO
GHGLFDWLRQ RI WKH RUGLQDU EXUHDXFUDW UDLOZD PDQ SROLFHPDQ DQG VROGLHU
WR WKH ZRUN RI DQQLKLODWLRQ ZLOO DOVR EH WUDFHG $ WSH RI FULPLQDO VWHSV IRU
ZDUG ZKR ZLOO EH QDPHG

26. ZKR ZLOO QHYHU VWDQG EHIRUH D MXGJH DIWHU
)RU +LOEHUJ¶V ELRJUDSK VHH WKH ,QWURGXFWLRQ WR WKH *HUPDQ HGLWLRQ RI +LOEHUJ¶V ZRUN 'LH
9HUQLFKWXQJ GHU HXURSlLVFKHQ -XGHQ )LVFKHU 7DVFKHQEXFK 9HUODJ )UDQNIXUW

27. DQG DOVR
%DUEDUD .XODV]ND HG

28. 'LG 6L[ 0LOOLRQ 5HDOO 'LH 6DPLVGDW 3XEOLVKHUV 7RURQWR SS I
RQOLQH KWWSZZZLKURUJERRNVNXODV]NDIDOVHQHZVWRFKWPO

29. YROV +ROPHV DQG 0HLHU 1HZ RUN

30. , ,1752'87,21
WKH 3UXVVLDQ JHQHUDO WKH QDWLRQDO FRQVHUYDWLYH PLQLVWHULDO RIILFLDO WKH GLS
ORPDW WKH MXULVW LQGXVWULDOLVWV FKHPLVWV DQG PHGLFDO GRFWRUV
+LOEHUJ KDV FROOHFWHG DQG UHILQHG WKH PDWHULDO IRU KLV ERRN WKURXJK
RXW KLV OLIHWLPH +H LV NQRZQ DV WKH EHVWLQIRUPHG VSHFLDOLVW RQ WKH VRXUFHV
ZKLFK IRU WKH PRVW SDUW FDPH IURP WKH SHUSHWUDWRUV 7KH KDYH UHFRUGHG WKH
SURRI RI WKHLU GHDGO KDQGLZRUN²ZLWK FKDUDFWHULVWLF WKRURXJKQHVV²D KXQ
GUHG WKRXVDQG WLPHV RYHU²ZLWK RIILFLDO VWDWLRQHU DQG VHDOV
7KH SUHVHQW FRPSUHKHQVLYH KLVWRU RI WKH +RORFDXVW LV µVRXUFH PDWH
ULDO IRU VSHFLDOLVWV DQDOVLV IRU WKHRUHWLFLDQV DQG D KLVWRU ERRN ZLWKRXW
SDUDOOHO IRU WKH JHQHUDO SXEOLF¶ 6XQGD 7LPHV

31. ´
7KDW +LOEHUJ¶V ZRUN LV WKH UHVXOW RI DQ LPPHQVH DQG GHYRWHG ODERU LV
UHFRJQL]HG HYHQ E 5HYLVLRQLVWV WKRVH ZKR GLVSXWH WKH FXUUHQW YHUVLRQ RI
WKH IDWH RI WKH -HZV LQ WKH 7KLUG 5HLFK )RU WKH )UHQFKPDQ 3URI 5REHUW
)DXULVVRQ RQH RI WKH PRVW SURPLQHQW 5HYLVLRQLVWV +LOEHUJ VWDQGV ³KLJK
DERYH 3ROLDNRY :HOOHUV .ODUVIHOG DQG RWKHUV OLNH WKHP´
%HFDXVH RI +LO
EHUJ¶V GRPLQDQW SRVLWLRQ LQ RUWKRGR[ µ+RORFDXVW¶ OLWHUDWXUH WKH 5HYLVLRQLVWV
KDYH KDG WR FRQIURQW KLV ZRUN DJDLQ DQG DJDLQ 7KH ILUVW VXFK FRQIURQWDWLRQ
ZDV LQ WKUHH HDUV DIWHU WKH DSSHDUDQFH RI WKH ILUVW HGLWLRQ RI 7KH
'HVWUXFWLRQ RI WKH (XURSHDQ -HZV $W WKDW WLPH WKH )UHQFKPDQ 3DXO
5DVVLQLHU D IRUPHU 5HVLVWDQFH ILJKWHU H[SULVRQHU RI WKH 16 FRQFHQWUDWLRQ
FDPSV %XFKHQZDOG DQG 'RUD DQG WKH IRXQGHU RI 5HYLVLRQLVP PDGH D IXOO
DWWDFN RQ +LOEHUJ ,Q KLV ERRN /H 'UDPH GHV -XLIV (XURSpHQV 5DVVLQLHU
PDGH D WKRURXJK VWXG RI +LOEHUJ¶V VWDWLVWLFV RQ -HZLVK SRSXODWLRQ ORVVHV
GXULQJ WKH 6HFRQG :RUOG :DU +H UHMHFWHG WKH ODWWHU¶V FRQFOXVLRQ WKDW WKH
QXPEHU RI -HZLVK YLFWLPV VKRXOG EH VHW DW PLOOLRQ KH VDLG +LOEHUJ FRXOG
RQO KDYH DUULYHG DW WKLV QXPEHU E D JURVV PDQLSXODWLRQ RI KLV GDWD
$FFRUGLQJ WR 5DVVLQLHU DQG EDVHG RQ +LOEHUJ¶V GDWD WKH UHDO QXPEHU RI
-HZLVK 16 YLFWLPV ZDV OHVV WKDQ RQH PLOOLRQ
5HYLVLRQLVW UHVHDUFK KDV QRW VWRRG VWLOO LQ WKH PRUH WKDQ HDUV
VLQFH WKH DSSHDUDQFH RI 5DVVLQLHU¶V FULWLTXH RI +LOEHUJ +RZHYHU WKHUH KDV
QHYHU EHHQ D FRPSUHKHQVLYH DQDOVLV RI WKH PHWKRGV +LOEHUJ DSSOLHG QRU D
FULWLFDO DSSUDLVDO RI KLV FRQFOXVLRQV 7KH SXUSRVH RI WKH SUHVHQW ZRUN LV WR
UHPHG WKDW ODFN
2XU LQYHVWLJDWLRQ ZLOO FRQFHQWUDWH RQ WKH IROORZLQJ SRLQWV
5REHUW )DXULVVRQ ³0RQ H[SpULHQFH GX UpYLVLRQQLVPH´ LQ $QQDOHV G
+LVWRLUH 5pYLVLRQQLVWH QR
VSULQJ TXRWHG IURP 5REHUW )DXULVVRQ eFULWV UpYLVLRQQLVWHV

32. YROXPHV SULYDWHO
SXEOLVKHG S Y ,,,

33. RQOLQH KWWSDDDUJKYKRRUJIUDQDUFK)DXU
5)[[KWPO

34. 3DXO 5DVVLQLHU /H GUDPH GHV MXLIV HXURSpHQV /HV 6HSW RXOHXUV 3DULV 5HSULQWHG E /D
9LHLOOH 7DXSH 3DULV SS RQOLQH KWWSDDDUJKYKRRUJIUDQDUFK5DVVLGMH
GMHKWPO

36. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
± :KDW SURRIV GRHV +LOEHUJ SURYLGH WKDW WKH 16 UHJLPH SODQQHG WKH
SKVLFDO GHVWUXFWLRQ RI -HZV OLYLQJ LQ LWV DUHD RI FRQWURO
± :KDW SURRIV GRHV +LOEHUJ SURYLGH IRU WKH H[LVWHQFH RI H[WHUPLQD
WLRQ FDPSV WKDW LV FDPSV HUHFWHG VROHO RU SDUWLDOO IRU WKH PXU
GHU RI -HZV DQG SURYLGHG ZLWK NLOOLQJ JDV FKDPEHUV IRU WKLV
SXUSRVH
± :KDW SURRIV GRHV +LOEHUJ SURYLGH IRU WKH ILJXUH RI FORVH WR
PLOOLRQ ZKLFK KH FODLPV LV WKH QXPEHU RI -HZLVK YLFWLPV RI 1D
WLRQDO 6RFLDOLVW SROLF
7KHUH ZLOO EH QR GLVFXVVLRQ RQ WKH SHUVHFXWLRQV DQG GHSRUWDWLRQV RI
-HZV GXULQJ WKH 6HFRQG :RUOG :DU QRU RQ WKH VXIIHULQJ RI -HZV LQ FDPSV
DQG JKHWWRV ZKLFK DUH GRXEWHG E DOPRVW QRERG +LOEHUJ¶V ZRUN UHVWV RQ
LQFRQWHVWDEO VROLG VRXUFH PDWHULDO KHUH 7KH PDVV VKRRWLQJV RI -HZV EHKLQG
WKH HDVWHUQ IURQW DUH D GLIIHUHQW PDWWHU ,W LV
QRW GLVSXWHG E DQRQH WKDW VRPH VKRRWLQJV
WRRN SODFH ZKDW LV LQ GLVSXWH E 5HYLVLRQLVW
UHVHDUFKHUV LV WKH H[WHQW RI WKHVH VKRRWLQJV
DV FODLPHG E +LOEHUJ DQG RWKHU RUWKRGR[
KLVWRULDQV 2Q WKLV SRLQW WRR ZH ZLOO H[DP
LQH FULWLFDOO WKH QXPEHUV RI YLFWLPV +LO
EHUJ FODLPV DQG WKH VRXUFHV KH KDV XVHG
,Q VKRUW ZH ZLOO DWWHPSW WR GHWHUPLQH
ZKHWKHU +LOEHUJ¶V JUHDW ZRUN RQ WKH µ+ROR
FDXVW¶ GHVHUYHV WKH VFKRODUO PHULW LW ODV
FODLP WR RU PXVW EH IRXQG ODFNLQJ

37. ,, *HQHUDO 5HPDUNV
7KUHH SRLQWV DUH QRWHZRUWK RQ D ILUVW UHDGLQJ RI +LOEHUJ¶V ZRUN
RQVLVWHQW ,JQRULQJ RI 2SSRVLQJ 7KHVHV
:KRHYHU XQGHUWRRN WR UHDG +LOEHUJ¶V VWDQGDUG ZRUN ZLWKRXW IXUWKHU
NQRZOHGJH RI WKH SUREOHPV LQ WKH VWXG RI WKH µ+RORFDXVW¶ ZRXOG QHYHU VXV
SHFW WKDW WKH YHUVLRQ RI HYHQWV RIIHUHG WKHUH LV LQ GLVSXWH +LOEHUJ GRHV QRW
XWWHU WKH OHDVW VXJJHVWLRQ WKDW WKHUH LV D VFKRRO RI UHVHDUFKHUV ZKR GLVSXWH
QRW RQO WKH H[LVWHQFH RI D SROLF RI H[WHUPLQDWLRQ RI WKH -HZV LQ WKH 7KLUG
5HLFK EXW DOVR WKH H[LVWHQFH RI µH[WHUPLQDWLRQ FDPSV¶ DQG KRPLFLGDO JDV
FKDPEHUV 2WKHU DGYRFDWHV RI WKH RUWKRGR[ YHUVLRQ RI WKH µ+RORFDXVW¶ DW
OHDVW PHQWLRQ WKH H[LVWHQFH RI VXFK GHYLDQW LGHDV XVXDOO RQO WR PDOLJQ
WKHP ZLWKRXW VWXGLQJ WKHP
+LOEHUJ KRZHYHU SUHWHQGV KH KDV QHYHU
KHDUG DQWKLQJ RI WKH 5HYLVLRQLVWV +H SUHWHQGV KH KDV QHYHU KHDUG RI WKH
VWXGLHV RI VXFK UHVSHFWHG DQG VHULRXV VFKRODUV DV $UWKXU %XW] :LOKHOP
6WlJOLFK RU 5REHUW )DXULVVRQ +LOEHUJ GRHV QRW PDNH PHQWLRQ RI D VLQJOH
5HYLVLRQLVW ERRN RU D VLQJOH 5HYLVLRQLVW MRXUQDO DQG KH GRHV QRW HYHQ
SHULSKHUDOO GLVFXVV DQ 5HYLVLRQLVW REMHFWLRQ WR WKH DQQLKLODWLRQ WKHVLV
:KHQ +LOEHUJ SXEOLVKHG WKH ILUVW HGLWLRQ RI 7KH 'HVWUXFWLRQ RI WKH
(XURSHDQ -HZV LQ KH FRXOG SHUKDSV KDYH MXVWLILHG LJQRULQJ YLHZ
SRLQWV ZKLFK WKUHZ GRXEW RQ WKH DFFHSWHG YHUVLRQ RI WKH IDWH RI -HZV LQ WKH
7KLUG 5HLFK WKH IHZ 5HYLVLRQLVW ZRUNV RI WKH WLPH ZHUH IDLUO PRGHVW
,Q
VXFK D SRVLWLRQ ZDV QR ORQJHU WHQDEOH ,W LV ZRUWK QRWLQJ WKDW 5HYL
VLRQLVW UHVHDUFK KDV PDGH JUHDW SURJUHVV VLQFH WKDW HDU ZKLOH WKH SURSR
,Q WKH LQWURGXFWLRQ WR WKH FROOHFWLRQ 1DWLRQDOVR]LDOLVWLVFKH 0DVVHQW|WXQJHQ GXUFK *LIWJDV )LVFKHU
7DVFKHQEXFK 9HUODJ )UDQNIXUW

38. HGLWHG E (XJHQ .RJRQ +HUPDQQ /DQJEHLQ $GDOEHUW
5FNHUO DQG RWKHUV WKH HGLWRUV WKXQGHU DJDLQVW WKH ³DSRORJLVWV IRU 1D]L WKHRU DQG SUDFWLFH´ ZKR
³GHQ´ WKH HYHQWV RI WKH SDVW IURP ZKLFK LQ DQ FDVH WKH UHDGHU FDQ VHH WKDW WKHUH DUH VRPH ZKR
GLVSXWH WKH DFFHSWHG YHUVLRQ RI WKH µ+RORFDXVW¶ 2I FRXUVH QHLWKHU DXWKRUV QRU WLWOHV DUH QDPHG
2QH H[DPSOH LV 3DXO 5DVVLQLHU¶V UHPDUNDEOH ERRN /H 0HQVRQJH G¶8OVVH ZKLFK KDG DSSHDUHG DV
HDUO DV UHSULQWHG E /D 9LHLOOH 7DXSH 3DULV RQOLQH KWWSDDDUJKYKRRUJIUDQ
DUFK5DVVLSUPXSUPXKWPO

39. +RZHYHU WKLV LV D UHSRUW RI SHUVRQDO H[SHULHQFH²QHFHVVDULO FRORUHG
E VXEMHFWLYH LPSUHVVLRQV²DQG QRW D ZRUN RI VFKRODUO ULJRU

40. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
QHQWV RI WKH H[WHUPLQDWLRQ WKHVLV KDYH EHHQ PDUFKLQJ LQ SODFH DQG ZLWK WKH
VROH H[FHSWLRQ RI -HDQODXGH 3UHVVDF KDYH QRWKLQJ QHZ WR RIIHU

41. %HFDXVH LJQRULQJ RU VXSSUHVVLQJ FRXQWHUDUJXPHQWV LV D WHOOWDOH VLJQ
RI XQVFKRODUO PHWKRG FRQVLGHUDEOH GRXEW PXVW EH FDVW RQ WKH FUHGLELOLW RI
+LOEHUJ¶V VFKRODUVKLS
1R 3KRWRV 1R 'HVFULSWLRQ RI WKH +RPLFLGDO *DV KDPEHUV
DQG *DV 9DQV
+LOEHUJ¶V JLJDQWLF WKUHHYROXPH ZRUN UXQQLQJ WR SDJHV FRQ
WDLQV H[DFWO WKUHH SKRWRJUDSKV QDPHO WKRVH RQ WKH WLWOH SDJHV RI WKH WKUHH
YROXPHV 'HVWUXFWLRQ RI WKH (XURSHDQ -HZV KHUHDIWHU FDOOHG '(- UXQV WR
SDJHV WKHUH DUH QR SKRWRJUDSKV

42. ,Q WKH WH[W LWVHOI WKHUH LV QRW RQH
SKRWRJUDSK ZKLFK PXVW EH FRQVLGHUHG XQXVXDO IRU VR H[WHQVLYH D ZRUN
/LNHZLVH KH RIIHUV KLV UHDGHU QR GHVFULSWLRQ RI D JDV FKDPEHU RU D JDV YDQ
DOWKRXJK WKLV ZRXOG VHHP WR EH LPSRUWDQW LQ YLHZ RI WKH QRYHOW DQG WKH
PRQVWURXVQHVV RI WKH XVH RI VXFK NLOOLQJ PDFKLQHV 7KHUH LV QR LOOXVWUDWLRQ
RU VNHWFK ZKLFK PLJKW JLYH LQTXLVLWLYH UHDGHUV LQVLJKW LQWR KRZ WKHVH JUXH
VRPH LQVWUXPHQWV RI PXUGHU DOOHJHGO IXQFWLRQHG
+LOEHUJ¶V DYHUVLRQ WR HQFRXQWHU WKH SKVLFDO UHDOLW RI WKH FRQFHQWUD
WLRQ FDPSV DQG WKH VRFDOOHG µH[WHUPLQDWLRQ FDPSV¶ FDQ DOVR EH VHHQ LQ WKH
IDFW WKDW KH KDV QHYHU SHUVRQDOO XQGHUWDNHQ DQ LQYHVWLJDWLRQ DW WKH ORFDWLRQV
RI WKH FDPSV %HIRUH WKLV PDQ ZKR KDG EHJXQ KLV VWXGLHV RQ WKH
µ+RORFDXVW¶ EDFN LQ KDG VSHQW H[DFWO RQH GD LQ 7UHEOLQND DQG
DQRWKHU KDOI GD LQ $XVFKZLW] , DQG $XVFKZLW]%LUNHQDX²DQG LQ DOO WKUHH
FDVHV WKLV ZDV RQO WR SDUWLFLSDWH LQ PHPRULDO FHUHPRQLHV +H KDV QHYHU
YLVLWHG DQ RI WKH RWKHU FRQFHQWUDWLRQ FDPSV DW DQ WLPH
7KLV KDV D YHU
RGG DSSHDUDQFH ,Q FRQWUDVW WR +LOEHUJ 5HYLVLRQLVWV VXFK DV 'LHWOLHE )HO
GHUHU 5REHUW )DXULVVRQ DUOR 0DWWRJQR *HUPDU 5XGROI DQG WKH ZULWHU RI
WKHVH OLQHV DQG DOVR WKH QRQ5HYLVLRQLVW -HDQODXGH 3UHVVDF KDYH PDGH
WKRURXJK H[DPLQDWLRQV RI WKH EXLOGLQJV ZKHUH WKH ZLWQHVVHV VD WKH PDVV
PXUGHUV WRRN SODFH DQG KDYH VWXGLHG WKH DSSOLFDEOH FRQVWUXFWLRQ GUDZLQJV
6XFK RQVLWH UHVHDUFK LV DEVROXWHO QHFHVVDU IRU VROYLQJ WKLV FRQWURYHUV
'LVFUHSDQF %HWZHHQ WKH 7LWOH DQG WKH RQWHQWV RI WKH :RUN
7KHUH LV QR GRXEW WKDW WKH ODUJHU SDUW RI WKH PDWHULDO +LOEHUJ SUHVHQWV
UHVWV RQ UHOLDEOH VRXUFHV 7KLV DSSOLHV SDUWLFXODUO WR WKH IRXU KXQGUHG SDJHV
+LOEHUJ¶V VWDWHPHQW XQGHU FURVVH[DPLQDWLRQ E GHIHQVH DWWRUQH 'RXJODV KULVWLH LQ WKH ILUVW
=QGHO WULDO LQ 7RURQWR LQ FLWHG LQ %DUEDUD .XODV]ND RS FLW QRWH

43. S

44. ,, *(1(5$/ 5(0$5.6
LQ ZKLFK KH GHVFULEHV WKH SHUVHFXWLRQ RI WKH -HZV -XGHQYHUIROJXQJ

45. WKH
DQWL-HZLVK ODZV DQG PHDVXUHV WDNHQ E *HUPDQ DQG KHU DOOLHV +RZHYHU
WKH ZRUN LV QRW HQWLWOHG 7KH 3HUVHFXWLRQ RI WKH (XURSHDQ -HZV 'LH 9HUIRO
JXQJ GHU HXURSlLVFKHQ -XGHQ

46. EXW 7KH 'HVWUXFWLRQ RI WKH (XURSHDQ -HZV
'LH 9HUQLFKWXQJ GHU HXURSlLVFKHQ -XGHQ

47. DQG KLV WLWOH LV QRW VXLWDEOH IRU
WKH ZRUN WDNHQ DV D ZKROH 6RPHRQH ZKR KDV VWUXJJOHG WKURXJK WKH
SDJHV RI WKH ILUVW YROXPH KDV QRW HW HQFRXQWHUHG WKH VXEMHFW IRU ZKLFK +LO
EHUJ KDV QDPHG KLV ZRUN 7KH ILUVW SDJHV RI WKH VHFRQG YROXPH QDPHO
SDJHV WR '(- Y SDJHV

48. DUH GHYRWHG WR WKH ³0RELOH
.LOOLQJ 2SHUDWLRQV´ WKLV FRQFHUQV WKH PDVV NLOOLQJV EHKLQG WKH HDVWHUQ
IURQW 1R IHZHU WKDQ SDJHV SS WR '(- Y SDJHV

49. GHDO ZLWK WKH GHSRUWDWLRQV RI -HZV IURP DUHDV FRQWUROOHG E *HUPDQ RU KHU
DOOLHV :LWK UHVSHFW WR WKH GHSRUWDWLRQV WKH IDFWV DUH ODUJHO XQGLVSXWHG
7KDW ZKLFK PDNHV WKH µ+RORFDXVW¶ VR VSHFWDFXODU DQG EHVWLDO LQ WKH
SRSXODU LPDJLQDWLRQ QDPHO WKH LQGXVWULDOL]HG VODXJKWHU LQ H[WHUPLQDWLRQ
FDPSV ILUVW VKRZV LWV IDFH RQ SDJH WKLV LV WKH EHJLQQLQJ RI WKH FKDSWHU
RQ ³.LOOLQJ HQWHU 2SHUDWLRQV´ '(- Y SDJHV

50. HW WKH UHDGHU
PXVW SHUVHYHUH IRU DQRWKHU KXQGUHG SDJHV XQWLO WKH VXEMHFW ILQDOO FRPHV
DURXQG WR WKH ³.LOOLQJ 2SHUDWLRQV´ LQ WKH SUHYLRXV ILYH VXEFKDSWHUV ³2UL
JLQV´ ³2UJDQL]DWLRQ 3HUVRQQHO DQG 0DLQWHQDQFH´ ³/DERU 8WLOL]DWLRQ´
³0HGLFDO ([SHULPHQWV´ DQG ILQDOO ³RQILVFDWLRQV´ LQ WKH ³$QQLKLODWLRQ
HQWHUV´ ZHUH GLVFXVVHG 5HPDUNDEO WKH VXEFKDSWHU ³.LOOLQJ 2SHUDWLRQV´
LV RQO QLQHWHHQ

51. SDJHV ORQJ '(-

52. RQ SDJH '(- S

53. WKH
VXEMHFW KDV DOUHDG PRYHG RQ WR ³/LTXLGDWLRQ RI WKH .LOOLQJ HQWHUV DQG WKH
(QG RI WKH 'HVWUXFWLRQ 3URFHVV´
7KH WKLUG YROXPH RI SDJHV LV GHYRWHG HQWLUHO WR ³RQVH
TXHQFHV´ ³5HIOHFWLRQV´ ³$IWHUHIIHFWV´ DQG ³)XUWKHU 'HYHORSPHQWV´ EHIRUH
WKH $SSHQGL[ FORVHV WKH ZRUN WKH ODWWHU FRQWDLQV +LOEHUJ¶V GDWD RQ -HZLVK
SRSXODWLRQ ORVVHV LQ '(- YROXPH FRQWDLQV WKH FKDSWHU RQ ³.LOOLQJ HQ
WHU 2SHUDWLRQV´

54. , VXPPDUL]H
± SDJHV RI WKH SDJH ³VWDQGDUG ZRUN RQ WKH +RORFDXVW´
'(- SDJHV RI SDJHV

55. GHDO ZLWK WKH NLOOLQJV EHKLQG WKH
HDVWHUQ IURQW ZKLFK KDV UHFHLYHG OHVV DWWHQWLRQ ERWK LQ WKH VFKRO
DUO DQG LQ WKH SRSXODU OLWHUDWXUH DQG ZKLFK LI ZH DUH WR JR E
+LOEHUJ¶V YLFWLP FRXQWV DUH DOVR QXPHULFDOO OHVV VLJQLILFDQW WKDQ
WKH FODLPHG PDVV NLOOLQJV LQ H[WHUPLQDWLRQ FDPSV
± $ WRWDO RI SDJHV RXW RI '(- SDJHV RI

56. DUH GH
YRWHG WR WKH FHQWUDO IL[WXUH RI WKH µ+RORFDXVW¶ WKH SUDFWLFDO FRXUVH
RI WKH FODLPHG PDVV NLOOLQJV LQ JDV FKDPEHUV SOXV WKHUH DUH
HOHYHQ PRUH SDJHV RQ WKH UHODWHG TXHVWLRQ RI WKH ³/LTXLGDWLRQ RI
WKH .LOOLQJ HQWHUV´

57. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
± 7KH HQWLUH ILUVW DQG WKH JUHDWHU SDUW RI WKH VHFRQG YROXPH LQ SDU
WLFXODU WKH SDJHV RQ WKH GHSRUWDWLRQV LQ '(- PRVW RI WKH ILUVW
YROXPH DQG DOO WKH VHFRQG YROXPH FRQWDLQLQJ SDJHV RQ GHSRU
WDWLRQV

58. KDYH QR GLUHFW EHDULQJ RQ WKH VXEMHFW IRU ZKLFK +LOEHUJ
KDV QDPHG KLV ZRUN QDPHO 7KH 'HVWUXFWLRQ RI WKH (XURSHDQ
-HZV ,Q WKH WKLUG YROXPH RQO WKH SRSXODWLRQ VWDWLVWLFV DUH DSSOL
FDEOH WR RXU VXEMHFW
$OUHDG DW WKLV SRLQW LW FDQ EH VHHQ WKDW WKH +LOEHUJ ZRUN GRHV QRW
FRQWDLQ ZKDW WKH WLWOH SURPLVHV 2I FRXUVH WKLV PDNHV WKH ZRUN RI WKH FULWLF
HDVLHU LQ WKDW LW SHUPLWV KLP WR FRQFHQWUDWH RQ D UHODWLYHO VPDOO SDUW RI WKLV
ODUJH ZRUN DQG GLVSHQVH ZLWK WKH UHVW ZLWK D IHZ FRPPHQWV

59. ,,, 5HPDUNV RQ WKH )LUVW 9ROXPH
+LOEHUJ LQWURGXFHV WKH ILUVW FKDSWHU RI KLV ZRUN ³3UHFHGHQWV´

60. ZLWK
WKH IROORZLQJ ZRUGV
³7KH *HUPDQ GHVWUXFWLRQ RI WKH (XURSHDQ -HZV ZDV D WRXU GH IRUFH
WKH -HZLVK FROODSVH XQGHU WKH *HUPDQ DVVDXOW ZDV D PDQLIHVWDWLRQ RI IDLO
XUH %RWK RI WKHVH SKHQRPHQD ZHUH WKH ILQDO SURGXFW RI DQ HDUOLHU DJH
$QWL-HZLVK SROLFLHV DQG DFWLRQV GLG QRW KDYH WKHLU EHJLQQLQJ LQ
)RU PDQ FHQWXULHV DQG LQ PDQ FRXQWULHV WKH -HZV KDG EHHQ YLFWLPV
RI GHVWUXFWLYH DFWLRQ´ S '(- S

61. 7KHUH DUH DGGLWLRQDO UHPDUNV RQ µDQWL6HPLWLVP¶ LQ (XURSHDQ KLVWRU
+LOEHUJ UHJDUGV WKH ³1D]L GHVWUXFWLRQ SURFHVV´ DV WKH ³FXOPLQDWLRQ RI D
FFOLFDO WUHQG´ ,Q WKH EHJLQQLQJ WKHUH ZHUH DWWHPSWV WR FRQYHUW WKH -HZV
VLQFH WKH IRU WKH PRVW SDUW GLG QRW ZDQW WR FRQYHUW H[SXOVLRQ ZDV WKHQ
WULHG DQG ODVWO WKH WKLUG PRVW UDGLFDO PHWKRG IROORZHG WKH SKVLFDO H[WHU
PLQDWLRQ RI WKH -HZV SS I '(- S

62. +LOEHUJ VXPPDUL]HV KLV WKHRU
E PHDQV RI FUHDWLYH GHFODUDWLRQV
³7KH PLVVLRQDULHV RI KULVWLDQLW KDG VDLG LQ HIIHFW RX KDYH QR
ULJKW WR OLYH DPRQJ XV DV -HZV 7KH VHFXODU UXOHUV ZKR IROORZHG KDG SUR
FODLPHG RX KDYH QR ULJKW WR OLYH DPRQJ XV 7KH *HUPDQ 1D]LV DW ODVW
GHFUHHG RX KDYH QR ULJKW WR OLYH´ S '(- S

63. +LOEHUJ GHFODUHV WKDW LW ZDV QR DFFLGHQW WKDW HQPLW WRZDUG WKH -HZV
UHDFKHG LWV PRVW H[WUHPH SLWFK LQ *HUPDQ VLQFH LW ZDV SDUW RI D ORQJ WUDGL
WLRQ WKHUH ,Q KLV WLPH 0DUWLQ /XWKHU KDG EHHQ D ELWWHU RSSRQHQW RI WKH -HZV
DV KLV HVVD 9RQ GHQ -XGHQ XQG LKUHQ /JHQ VKRZV 2Q WKH -HZV DQG 7KHLU
/LHV SXEOLVKHG LQ +LOEHUJ SS II '(- S

64. )URP /XWKHU +LOEHUJ
JRHV RQ WR WKH *HUPDQ DQWL6HPLWHV RI WKH WK HQWXU DQG WR WKH -HZKDW
LQJ LGHRORJ RI 1DWLRQDO 6RFLDOLVP 1H[W KH FRPPHQWV RQ WKH -HZLVK UHDF
WLRQ WR XQGHUJRLQJ UHFXUULQJ SHUVHFXWLRQV -HZV UHDFWHG WR WKHVH DOZDV ZLWK
³DOOHYLDWLRQ DQG FRPSOLDQFH´ S '(- S

65. ,Q WKH 7KLUG 5HLFK WKLV
EHFDPH WKHLU GRRP
7R UHGXFH WKH QXPEHU RI IRRWQRWHV ZKHQHYHU , FLWH +LOEHUJ WKH SDJH QXPEHU RI WKH XSGDWHG
*HUPDQ YHUVLRQ LV JLYHQ LQ SDUHQWKHVHV 3DJH QXPEHUV RI WKH (QJOLVK RULJLQDO DUH WDJJHG ZLWK '(-

66. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
³:KHQ WKH 1D]LV WRRN RYHU LQ WKH ROG -HZLVK UHDFWLRQ SDWWHUQ
VHW LQ DJDLQ EXW WKLV WLPH WKH UHVXOWV ZHUH FDWDVWURSKLF 7KH *HUPDQ EXUHDX
FUDF ZDV QRW VORZHG E -HZLVK SOHDGLQJ LW ZDV QRW VWRSSHG E -HZLVK
LQGLVSHQVDELOLW :LWKRXW UHJDUG WR FRVW WKH EXUHDXFUDWLF PDFKLQH RSHUDW
LQJ ZLWK DFFHOHUDWLQJ VSHHG DQG HYHUZLGHQLQJ GHVWUXFWLYH HIIHFW SURFHHGHG
WR DQQLKLODWH WKH (XURSHDQ -HZV 7KH -HZLVK FRPPXQLW XQDEOH WR VZLWFK WR
UHVLVWDQFH LQFUHDVHG LWV FRRSHUDWLRQ ZLWK WKH WHPSR RI WKH *HUPDQ PHD
VXUHV WKXV KDVWHQLQJ LWV RZQ GHVWUXFWLRQ
:H VHH WKHUHIRUH WKDW ERWK SHUSHWUDWRUV DQG YLFWLPV GUHZ XSRQ WKHLU
DJHROG H[SHULHQFH LQ GHDOLQJ ZLWK HDFK RWKHU 7KH *HUPDQV GLG LW ZLWK VXF
FHVV WKH -HZV GLG LW ZLWK GLVDVWHU´ S '(- S

67. $V ZH VHH DW WKH EHJLQQLQJ RI KLV ODUJH ZRUN +LOEHUJ SURYLGHV KLV
WRULFDO SVFKRORJLFDO DQG SKLORVRSKLFDO REVHUYDWLRQV RQ WKH KLVWRU OHDGLQJ
WR WKH H[WHUPLQDWLRQ RI WKH -HZV²IRU ZKLFK KH KDV DW WKLV SRLQW SURYLGHG QR
SURRI EXW ZKLFK KH DVVXPHV WR EH D[LRPDWLF ,Q HIIHFW KH KDUQHVVHV WKH
ZDJRQ EHIRUH WKH KRUVH 7KH SURSHU VFKRODUO PHWKRG ZRXOG KDYH EHHQ WR
FODULI WKH IDFWV EHIRUH JRLQJ RQ WR SKLORVRSKL]H RYHU ZKDW EURXJKW WKHP
DERXW
$IWHU WKH VHFRQG FKDSWHU ³$QWHFHGHQWV´

68. LQ ZKLFK WKH DQWL-HZLVK
PHDVXUHV XQGHUWDNHQ DIWHU WKH VHL]XUH RI SRZHU RI WKH 16'$3 DUH
GHVFULEHG +LOEHUJ WXUQV WR ³7KH 6WUXFWXUH RI 'HVWUXFWLRQ´ SS II '(-
SS II

69. $V FRPSRQHQWV RI WKH ³'HVWUXFWLRQ 3URFHVV´ KH LQFOXGHV
± 7KH GHILQLWLRQ RI WKH FRQFHSW µ-HZ¶ E WKH 1DWLRQDO 6RFLDOLVWV SS
'(- SS

70. DQG WKH SURKLELWLRQ RQ WKH PL[LQJ RI $U
DQV DQG -HZV
± 7KH GLVSRVVHVVLRQ RI -HZV SS '(- SS

71. ± 7KH FRQFHQWUDWLRQ RI -HZV LQ GHVLJQDWHG GZHOOLQJ TXDUWHUV PDLQO
JKHWWRV ZKLFK ILUVW DIIHFWHG -HZV OLYLQJ LQ WKH DUHD RI WKH SUHZDU
5HLFK DQG LQ WKH 3URWHFWRUDWHV RI %RKHPLD DQG 0RUDYLD DQG VXE
VHTXHQWO DIIHFWHG -HZV IURP WKH 3ROLVK WHUULWRULHV FRQTXHUHG LQ
,Q WKLV FKDSWHU +LOEHUJ UHOLHV DOPRVW H[FOXVLYHO RQ VROLG DQG DFFHVVL
EOH VRXUFHV VR WKH IDFWV KH GHVFULEHV KHUH DUH PRVWO QRW GLVSXWDEOH 7KLV
SDUW RI WKH ZRUN FRQVWLWXWHV D XVHIXO GRFXPHQWDWLRQ RI WKH VWHSEVWHS GLV
IUDQFKLVHPHQW RI WKH -HZV XQGHU 16 UXOH +RZHYHU WKHUH LV D VZLQGOH DV WR
QDPHV JRLQJ RQ KHUH WKDW LV VRPHZKDW RIIHQVLYH 'LVFULPLQDWLRQ GLVSRVVHV
VLRQ DQG JKHWWRL]DWLRQ RI D PLQRULW DUH QRW FRPSRQHQWV RI DQ ³DQQLKLODWLRQ
SROLF´ 7KH %ODFNV RI 6RXWK $IULFD KDG QR SROLWLFDO ULJKWV XQGHU WKH $SDUW
KHLG VVWHP DQG PRVWO OLYHG LQ VHSDUDWHG GLVWULFWV HW QR UHDVRQDEOH SHUVRQ
ZRXOG DVVHUW WKDW WKH ZHUH DQQLKLODWHG E WKH UXOLQJ :KLWH PLQRULW 7KH
3DOHVWLQLDQV DUH WUDQQL]HG DQG KDUDVVHG DQ QXPEHU RI ZDV LQ ,VUDHO DQG

72. ,,, 5(0$5.6 21 7+( ),567 92/80(
HYHQ PRUH LQ ,VUDHOL RFFXSLHG WHUULWRULHV²WKH ZHUH E QR PHDQV DQQLKL
ODWHG +LOEHUJ LV FUHDWLQJ D GHOLEHUDWH FRQIXVLRQ RI LGHDV
7KLV LV QRW WKH RQO H[DPSOH RI GLVKRQHVW WKDW ZH HQFRXQWHU LQ WKH
ILUVW YROXPH 2Q SS I '(- S

73. LQ FRQQHFWLRQ ZLWK WKH UHPRYDO RI
*HUPDQ -HZV WR WKH (DVW +LOEHUJ ZULWHV
³,Q 2FWREHU PDVV GHSRUWDWLRQV EHJDQ LQ WKH 5HLFK 7KH GLG
QRW HQG XQWLO WKH GHVWUXFWLRQ SURFHVV ZDV RYHU 7KH REMHFW RI WKHVH PRYH
PHQWV ZDV QRW HPLJUDWLRQ EXW WKH GHVWUXFWLRQ RI WKH -HZV $V HW KRZHYHU
WKHUH ZHUH QR NLOOLQJ FHQWHUV LQ ZKLFK WKH YLFWLPV FRXOG EH JDVVHG WR GHDWK
DQG VR LW ZDV GHFLGHG WKDW SHQGLQJ WKH FRQVWUXFWLRQ RI GHDWK FDPSV WKH
-HZV ZHUH WR EH GXPSHG LQWR JKHWWRV RI WKH LQFRUSRUDWHG WHUULWRULHV DQG WKH
RFFXSLHG 6RYLHW DUHDV IXUWKHU HDVW 7KH WDUJHW LQ WKH LQFRUSRUDWHG WHUULWRULHV
ZDV WKH JKHWWR RI âyGê´
+LOEHUJ VWLOO RZHV KLV UHDGHUV D SURRI IRU WKLV DVVHUWLRQ :KLOH WKH
HQWLUH SURFHVV RI WKH UHPRYDO RI *HUPDQ -HZV WR WKH (DVW FDQ EH GRFX
PHQWHG XS RQH VLGH DQG GRZQ WKH RWKHU²DQG +LOEHUJ PRVWO UHOLHV RQ *HU
PDQ RULJLQDO GRFXPHQWV LQ KLV QXPHURXV IRRWQRWHV²KH GRHV QRW FLWH DQ
GRFXPHQW DV VRXUFH IRU WKH DERYH DVVHUWLRQ QRU HYHQ DQ ZLWQHVV WHVWLPRQ
7KH SDVVDJH MXVW FLWHG LV RQH RI WKH ILUVW FOHDU H[DPSOHV RI D GLVKRQHVW
WDFWLF WKDW +LOEHUJ HPSORV IUHTXHQWO LQ WKH VHFRQG YROXPH +H HPEHGV
XQGRFXPHQWHG DVVHUWLRQV RU DVVHUWLRQV VXSSRUWHG RQO E TXHVWLRQDEOH ZLW
QHVV WHVWLPRQ

74. RQ DQQLKLODWLRQ RI -HZV DPRQJ SURSHUO GRFXPHQWHG VWDWH
PHQWV RQ SHUVHFXWLRQ RI -HZV RU GHSRUWDWLRQ RI -HZV DQG PD KDYH KRSHG
WKDW WKH UHDGHU ZLOO QRW FDWFK KLP ,Q WKH FDVH DERYH WKH LOORJLF RI KLV DVVHU
WLRQ FDQ EH JUDVSHG ZLWK ERWK KDQGV HVSHFLDOO ZKHQ UHJDUGHG LQ FRQWH[W
2Q SDJHV '(-

75. +LOEHUJ GHVFULEHV WKH ORJLVWLFDO DQG
RUJDQL]DWLRQDO GLIILFXOWLHV FDXVHG E WKH LPSURYLVHG PDVV UHPRYDOV RI *HU
PDQ -HZV WR WKH :HVW 3ROLVK WHUULWRULHV LQFRUSRUDWHG LQWR WKH 5HLFK LQ
DQG WR WKH *HQHUDOJRXYHUQHPHQW DQG KRZ IXULRXVO WKH ORFDO 16 DXWKRULWLHV
RSSRVHG WKHVH UHPRYDOV )RU H[DPSOH :HUQHU 9HQW]NL KLHI 0DRU RI WKH
FLW RI áyGé UHQDPHG /LW]PDQQVWDGW SURWHVWHG YHKHPHQWO DJDLQVW WKH SODQ
5HLFKVIKUHU 66 +HLQULFK +LPPOHU ZDV FRQVLGHULQJ LQ 6HSWHPEHU WR
GHSRUW -HZV DQG JSVLHV WR WKH áyGé JKHWWR IURP ZKLFK WKH
ZHUH WR EH VKLSSHG IXUWKHU (DVW WKH IROORZLQJ HDU 9HQW]NL LQVLVWHG WKDW WKH
DUULYDO RI PRUH SHUVRQV LQ WKH JKHWWR ZKLFK ZDV DOUHDG IXOO WR RYHU
IORZLQJ ZRXOG UDLVH WKH GHQVLW RI RFFXSDWLRQ WR VHYHQ SHUVRQV SHU URRP
WKDW WKH QHZ DUULYDOV ZRXOG KDYH WR EH ORGJHG LQ IDFWRULHV ZKLFK ZRXOG GLV
UXSW SURGXFWLRQ WKDW SHRSOH ZRXOG VWDUYH DQG WKDW LW ZRXOG EH LPSRVVLEOH WR
SUHYHQW HSLGHPLFV SS I '(- SS I

76. 1HYHUWKHOHVV WKH UHPRYDO
ZHQW IRUZDUG

77. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
,I WKH SXUSRVH RI WKH GHSRUWDWLRQV ZDV ³QRW HPLJUDWLRQ EXW WKH
GHVWUXFWLRQ RI WKH -HZV´ DV +LOEHUJ DVVHUWV WKH 1DWLRQDO 6RFLDOLVW SROLF RI
UHPRYDO RI WKH -HZV WR WKH (DVW EHIRUH WKH FRPSOHWLRQ RI WKH µGHDWK FDPSV¶
EHFRPHV VHQVHOHVV $FFRUGLQJ WR +LOEHUJ¶V ERRN WKH WZR ILUVW µGHDWK
FDPSV¶ KHåPQR DQG %HåìHF EHFDPH RSHUDWLRQDO LQ 'HFHPEHU DQG LQ
0DUFK UHVSHFWLYHO S '(- S

78. ,Q WKDW FDVH , DVN ZK
ZRXOG WKH *HUPDQV VHQG PDVVLYH QXPEHUV RI -HZV LQWR WKH JKHWWRV VWDUWLQJ
LQ 2FWREHU WR ZDLW IRU WKH µGHDWK FDPSV¶ WR EHFRPH RSHUDWLRQDO
LQVWHDG RI KROGLQJ RII RQ WKH GHSRUWDWLRQV IRU WKUHH RU IRXU PRQWKV WR VDYH
WKHPVHOYHV WKH RUJDQL]DWLRQDO KHDGDFKHV DQG WKH FKDRV LQ WKH JKHWWRV +LO
EHUJ GRHV QRW ERWKHU WR GLVFXVV REYLRXV TXHVWLRQV RI WKLV VRUW
1HYHUWKHOHVV WKH ILUVW YROXPH RI 7KH 'HVWUXFWLRQ RI WKH (XURSHDQ
-HZV UHSUHVHQWV D ZHOOUHVHDUFKHG GRFXPHQWDWLRQ RQ WKH GHVWLQ RI WKH -HZV
LQ WKH 7KLUG 5HLFK IURP WR 3HRSOH PD GLVDJUHH DV WR WKH LQWHU
SUHWDWLRQ RI WKH IDFWV²EXW ZH DUH LQWHUHVWHG RQO LQ WKH IDFWV WKHPVHOYHV
DQG XQOLNH +LOEHUJ ZH UHIUDLQ IURP UDQGRP SKLORVRSKL]LQJ ,W LV DQ DEXVH
IRU +LOEHUJ WR FODVVLI WKH PHDVXUHV WDNHQ E WKH 16 UHJLPH GXULQJ WKLV
SHULRG DV ³DQQLKLODWLRQ SROLF´²WKH FOHDUO GR QRW IDOO XQGHU WKDW KHDGLQJ

79. ,9 7KH /DFN RI 'RFXPHQWV RQ $QQLKLODWLRQ 3ROLF
DQG LWV RQVHTXHQFHV IRU WKH 2UWKRGR[ +LVWRULDQV
³1R 'RFXPHQWV +DYH 6XUYLYHG´
7KDW QR RQH KDV HYHU IRXQG D ZULWWHQ RUGHU IRU WKH SKVLFDO H[WHUPL
QDWLRQ RI WKH -HZV RULJLQDWLQJ ZLWK $GROI +LWOHU RU DQ RWKHU OHDGLQJ 16
SROLWLFLDQ LV DJUHHG XSRQ E KLVWRULDQV RI DOO RULHQWDWLRQV /pRQ 3ROLDNRY
RQH RI WKH PRVW SURPLQHQW SURSRQHQWV RI WKH RUWKRGR[ SLFWXUH RI WKH µ+ROR
FDXVW¶ VWDWHG XQHTXLYRFDOO
³7KH DUFKLYHV RI WKH 7KLUG 5HLFK DQG WKH GHSRVLWLRQV DQG DFFRXQWV RI
LWV OHDGHUV PDNH SRVVLEOH D UHFRQVWUXFWLRQ GRZQ WR WKH ODVW GHWDLO RI WKH RUL
JLQ DQG GHYHORSPHQW RI WKH SODQV IRU DJJUHVVLRQ WKH PLOLWDU FDPSDLJQV
DQG WKH ZKROH DUUD RI SURFHGXUHV E ZKLFK WKH 1D]LV LQWHQGHG WR UHVKDSH
WKH ZRUOG WR WKHLU OLNLQJ 2QO WKH FDPSDLJQ WR H[WHUPLQDWH WKH -HZV DV
UHJDUGV LWV FRQFHSWLRQ DV ZHOO DV PDQ RWKHU HVVHQWLDO DVSHFWV UHPDLQV
VKURXGHG LQ GDUNQHVV ,QIHUHQFHV SVFKRORJLFDO FRQVLGHUDWLRQV DQG WKLUG
RU IRXUWKKDQG UHSRUWV HQDEOH XV WR UHFRQVWUXFW LWV GHYHORSPHQW ZLWK FRQVLG
HUDEOH DFFXUDF HUWDLQ GHWDLOV KRZHYHU PXVW UHPDLQ IRUHYHU XQNQRZQ
7KH WKUHH RU IRXU SHRSOH FKLHIO LQYROYHG LQ WKH DFWXDO GUDZLQJ XS RI WKH
SODQ IRU WRWDO H[WHUPLQDWLRQ DUH GHDG DQG QR GRFXPHQWV KDYH VXUYLYHG SHU
KDSV QRQH HYHU H[LVWHG´
1RWKLQJ QHHGV WR EH FKDQJHG LQ WKLV VWDWHPHQW $W D FRQJUHVV RI KLVWR
ULDQV KHOG LQ 6WXWWJDUW LQ FRYHULQJ ³7KH 0XUGHU RI WKH -HZV LQ WKH 6HF
RQG :RUOG :DU´ WKH SDUWLFLSDQWV UHDFKHG DJUHHPHQW RQ RQO RQH SRLQW
QDPHO WKDW D ZULWWHQ RUGHU IRU WKH DQQLKLODWLRQ KDG QHYHU EHHQ IRXQG
7KLV FLUFXPVWDQFH KDV FDXVHG KLVWRULFDO UHVHDUFKHUV KHDGDFKHV IRU D
ORQJ WLPH $ JLJDQWLF RSHUDWLRQ VXFK DV WKH GHSRUWDWLRQ RI VHYHUDO PLOOLRQV
RI -HZV LQWR µH[WHUPLQDWLRQ FDPSV¶ DQG WKHLU PXUGHU WKHUH QHFHVVDULO SUH
VXSSRVHV DQ RUJDQL]DWLRQ ZKLFK PXVW KDYH LQYROYHG WKH SDUWLFLSDWLRQ RI
WKRXVDQGV XSRQ WKRXVDQGV RI SHUVRQV DQG VXFK D WKLQJ GRHV QRW KDSSHQ
/pRQ 3ROLDNRY +DUYHVW RI +DWH +RORFDXVW /LEUDU 1HZ RUN S
(EHUKDUG -lFNHO DQG -UJHQ 5RKZHU HGV

80. 'HU 0RUG DQ GHQ -XGHQ LP =ZHLWHQ :HOWNULHJ 'HXWVFKH
9HUODJVDQVWDOW 6WXWWJDUW S

81. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
ZLWKRXW ZULWWHQ RUGHUV²HVSHFLDOO QRW LQ VXFK D EXUHDXFUDWLFDOO RUJDQL]HG
VWDWH DV WKH 7KLUG 5HLFK ZDV 7KH 1DWLRQDO 6RFLDOLVWV PRVWO GLG QRW GHVWUR
WKHLU GRFXPHQWV DV WKH ZDU FDPH WR DQ HQG UDWKHU WKHVH IHOO LQ KXJH
DPRXQWV LQWR WKH KDQGV RI WKH YLFWRUV ,Q KLV ZHOONQRZQ ERRN 5LVH DQG )DOO
RI WKH 7KLUG 5HLFK
:LOOLDP / 6KLUHU GHVFULEHV KRZ WKLV UHVXOWHG LQ
³«@ WKH FDSWXUH RI PRVW RI WKH FRQILGHQWLDO DUFKLYHV RI WKH *HUPDQ
JRYHUQPHQW DQG DOO LWV EUDQFKHV LQFOXGLQJ WKRVH RI WKH )RUHLJQ 2IILFH WKH
$UP WKH 1DY WKH 1DWLRQDO 6RFLDOLVW 3DUW DQG +HLQULFK +LPPOHU¶V VHFUHW
SROLFH 1HYHU EHIRUH , EHOLHYH KDV VXFK D YDVW WUHDVXUH IDOOHQ LQWR WKH KDQGV
RI FRQWHPSRUDU KLVWRULDQV «@ 7KH VZLIW FROODSVH RI WKH 7KLUG 5HLFK LQ
VSULQJ RI UHVXOWHG LQ WKH VXUUHQGHU QRW RQO RI D YDVW EXON RI LWV VHFUHW
SDSHUV EXW RI RWKHU SULFHOHVV PDWHULDO VXFK DV SULYDWH GLDULHV KLJKO VHFUHW
VSHHFKHV FRQIHUHQFH UHSRUWV DQG FRUUHVSRQGHQFH DQG HYHQ WUDQVFULSWV RI
WHOHSKRQH FRQYHUVDWLRQV RI WKH 16 OHDGHUV WDSSHG E D VSHFLDO RIILFH VHW XS
E +HUPDQQ *|ULQJ LQ WKH $LU 0LQLVWU «@ WRQV RI UHFRUGV RI WKH *HU
PDQ )RUHLJQ 2IILFH FDSWXUHG E WKH 86 )LUVW $UP LQ YDULRXV FDVWOHV DQG
PLQHV LQ WKH +DU] 0RXQWDLQV MXVW DV WKH ZHUH DERXW WR EH EXUQHG RQ RUGHUV
IURP %HUOLQ «@ +XQGUHGV RI WKRXVDQGV RI FDSWXUHG GRFXPHQWV ZHUH KXU
ULHGO DVVHPEOHG DW 1XUHPEHUJ DV HYLGHQFH LQ WKH WULDO RI WKH PDMRU ZDU
FULPLQDOV´
,Q YLHZ RI WKLV PRXQWDLQ RI 16 GRFXPHQWV WKH ODFN RI DQ GRFXPHQ
WDU SURRI IRU D SROLF RI DQQLKLODWLRQ RI WKH -HZV LV SDLQIXOO HPEDUUDVVLQJ
IRU WKH SURSRQHQWV RI WKH RIILFLDO SLFWXUH RI WKH µ+RORFDXVW¶ 7KH DUJXPHQW
WKDW DW OHDVW LQ WKH µH[WHUPLQDWLRQ FDPSV¶ WKH LQFULPLQDWLQJ SDSHUV ZHUH
GHVWURHG LQ WLPH LV XVHOHVV HVSHFLDOO VLQFH ,Q WKDW HDU WKH 6RYLHWV
PDGH DYDLODEOH WR :HVWHUQ UHVHDUFKHUV WKH GRFXPHQWV RI WKH HQWUDO RQ
VWUXFWLRQ 2IILFH LQ $XVFKZLW] FDSWXUHG E WKH 5HG $UP LQ 7KH HQ
WUDO RQVWUXFWLRQ 2IILFH ZDV DQ RUJDQL]DWLRQ WKDW ZDV UHVSRQVLEOH IRU WKH
FRQVWUXFWLRQ RI WKH FUHPDWRULHV²WKH FUHPDWRULHV ZKLFK VXSSRVHGO FRQ
WDLQHG WKH JDV FKDPEHUV IRU WKH PDVV NLOOLQJ RI -HZV 7KHUH DUH QR OHVV WKDQ
SDJHV RI GRFXPHQWV
7KH GR QRW FRQWDLQ DQ HYLGHQFH IRU WKH FRQ
VWUXFWLRQ RI KRPLFLGDO JDV FKDPEHUV ,I WKHUH KDG EHHQ WKH RPPXQLVWV
ZRXOG KDYH DQQRXQFHG LW WR WKH ZRUOG WULXPSKDQWO LQ
7KH FRPSOHWH ODFN RI GRFXPHQWDU HYLGHQFH IRU D SROLF RI DQQLKLOD
WLRQ RI WKH -HZV DV ZHOO DV IRU WKH FRQVWUXFWLRQ RI JDV FKDPEHUV IRU NLOOLQJ
SXUSRVHV KDV OHG WR D VSOLW LQ WKH UDQNV RI WKH RUWKRGR[ KLVWRULDQV PHDQLQJ
WKRVH ZKR XSKROG WKH WKHRU RI WKH GHOLEHUDWH DQG VVWHPDWLF DQQLKLODWLRQ RI
:LOOLDP / 6KLUHU 5LVH DQG )DOO RI WKH 7KLUG 5HLFK 6LPRQ DQG 6FKXVWHU 1HZ RUN SS L[ [
'XULQJ WZR H[WHQGHG YLVLWV WR 0RVFRZ LQ WRJHWKHU ZLWK ,WDOLDQ KLVWRULDQ DUOR 0DWWRJQR ZH
H[DPLQHG SDJHV DQG PDGH FRSLHV RI RI WKHP

82. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
WKH -HZV EHWZHHQ ,QWHQWLRQDOLVWV DQG )XQFWLRQDOLVWV ,Q ZKDW IROORZV ZH
ZLOO FRPSDUH WKH WZR RULHQWDWLRQV
,QWHQWLRQDOLVWV DQG )XQFWLRQDOLVWV
$W D FROORTXLXP RQ ³1D]L *HUPDQ DQG WKH *HQRFLGH RI WKH -HZV´
KHOG DW WKH 6RUERQQH LQ 3DULV LQ 86 KLVWRULDQ KULVWRSKHU %URZQLQJ
VXPPDUL]HG WKH GLIIHUHQFH RI RSLQLRQ EHWZHHQ ,QWHQWLRQDOLVWV DQG )XQFWLRQ
DOLVWV ZLWK UHVSHFW WR WKH JHQHVLV RI WKH SROLF RI DQQLKLODWLRQ RI WKH -HZV DV
IROORZV
³,Q UHFHQW HDUV WKH LQWHUSUHWDWLRQV RI 1DWLRQDO 6RFLDOLVP KDYH
SRODUL]HG PRUH DQG PRUH LQWR WZR JURXSV WKDW 7LP 0DVRQ KDV DSWO FDOOHG
µ,QWHQWLRQDOLVWV¶ DQG µ)XQFWLRQDOLVWV¶ 7KH IRUPHU H[SODLQ WKH GHYHORSPHQW
RI 1D]L *HUPDQ DV D UHVXOW RI +LWOHU¶V LQWHQWLRQV ZKLFK FDPH RXW RI D
FRKHUHQW DQG ORJLFDO LGHRORJ DQG ZHUH UHDOL]HG GXH WR DQ DOOSRZHUIXO
WRWDOLWDULDQ GLFWDWRUVKLS 7KH µ)XQFWLRQDOLVWV¶ SRLQW RXW WKH DQDUFKLVWLF
FKDUDFWHU RI WKH 1D]L VWDWH LWV LQWHUQDO ULYDOULHV DQG WKH FKDRWLF SURFHVV RI
GHFLVLRQPDNLQJ ZKLFK FRQVWDQWO OHG WR LPSURYLVDWLRQ DQG UDGLFDOL]DWLRQ
«@ 7KHVH WZR PRGHV RI H[SRVLWLRQ RI KLVWRU DUH XVHIXO IRU WKH DQDOVLV RI
WKH VWURQJO GLYHUJHQW PHDQLQJV WKDW SHRSOH DWWULEXWH WR WKH -HZLVK SROLF RI
WKH 1D]LV LQ JHQHUDO DQG WR WKH )LQDO 6ROXWLRQ LQ SDUWLFXODU 2Q WKH RQH
KDQG /XF 'DZLGRZLF] D UDGLFDO ,QWHQWLRQDOLVW XSKROGV WKH YLHZSRLQW WKDW
DOUHDG LQ +LWOHU KDG GHFLGHG WR H[WHUPLQDWH (XURSHDQ -HZV $QG QRW
RQO WKDW +H NQHZ DW ZKDW SRLQW LQ WLPH KLV PXUGHURXV SODQ ZRXOG EH UHDO
L]HG 7KH 6HFRQG :RUOG :DU ZDV DW WKH VDPH WLPH WKH PHDQV DQG RSSRUWX
QLW WR SXW KLV µZDU DJDLQVW WKH -HZV¶ LQWR HIIHFW :KLOH KH ZDLWHG IRU WKH
DQWLFLSDWHG PRPHQW IRU WKH UHDOL]DWLRQ RI KLV µJUHDW SODQ¶ QDWXUDOO KH WROHU
DWHG D VHQVHOHVV DQG PHDQLQJOHVV SOXUDOLVP LQ WKH -HZLVK SROLFLHV RI WKH VXE
RUGLQDWH UDQNV RI VWDWH DQG SDUW
$JDLQVW WKH UDGLFDO ,QWHQWLRQDOLVP RI /XF 'DZLGRZLF] ZKLFK
HPSKDVL]HV WKH LQWHQWLRQV DQG µJUHDW SODQ¶ RI +LWOHU WKH 8OWUDIXQFWLRQDOLVP
RI 0DUWLQ %URV]DW FRQVWLWXWHV D GLDPHWULFDOO RSSRVHG YLHZ RI WKH UROH RI WKH
)KUHU HVSHFLDOO ZLWK UHVSHFW WR WKH GHFLVLRQ RQ WKH )LQDO 6ROXWLRQ ,W LV
%URV]DW¶V SRVLWLRQ WKDW +LWOHU QHYHU WRRN D GHILQLWLYH GHFLVLRQ QRU LVVXHG D
JHQHUDO RUGHU IRU WKH )LQDO 6ROXWLRQ 7KH DQQLKLODWLRQ SURJUDP GHYHORSHG LQ
VWDJHV LQ FRQMXQFWLRQ ZLWK D VHULHV RI LVRODWHG PDVVDFUHV DW WKH HQG RI
DQG LQ 7KHVH ORFDOO OLPLWHG PDVV PXUGHUV ZHUH LPSURYLVHG DQVZHUV
WR DQ LPSRVVLEOH VLWXDWLRQ WKDW KDG GHYHORSHG DV D UHVXOW RI WZR IDFWRUV
)LUVW WKH LGHRORJLFDO DQG SROLWLFDO SUHVVXUH IRU WKH FUHDWLRQ RI D µ-HZIUHH¶
(XURSH WKDW VWHPPHG IURP +LWOHU DQG WKHQ WKH PLOLWDU UHYHUVHV RQ WKH HDVW
KULVWRSKHU %URZQLQJ ³/D GpFLVLRQ FRQFHUQDQW OD VROXWLRQ ILQDOH´ LQ ROORTXH GH O¶(FROH GHV
+DXWHV (WXGHV HQ VFLHQFHV VRFLDOHV /¶$OOHPDJQH QD]LH HW OH JpQRFLGH MXLI *DOOLPDUG/H 6HXLO 3DULV
SS I

83. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
HUQ IURQW WKDW OHG WR VWRSSDJHV LQ UDLOZD WUDIILF DQG FDXVHG WKH EXIIHU ]RQHV
LQWR ZKLFK WKH -HZV ZHUH WR EH UHPRYHG WR GLVDSSHDU 2QFH WKH DQQLKLODWLRQ
SURJUDP ZDV LQ SURJUHVV LW JUDGXDOO LQVWLWXWLRQDOL]HG LWVHOI XQWLO LW ZDV
QRWLFHG WKDW LW RIIHUHG WKH VLPSOHVW VROXWLRQ ORJLVWLFDOO DQG EHFDPH D SUR
JUDP XQLYHUVDOO DSSOLHG DQG VLQJOHPLQGHGO SXUVXHG )URP WKLV VWDQG
SRLQW +LWOHU ZDV D FDWDOVW EXW QRW D GHFLVLRQPDNHU
)RU /XF 'DZLGRZLF] WKH )LQDO 6ROXWLRQ ZDV WKRXJKW RXW WZHQW
HDUV EHIRUH LW ZDV SXW LQWR SUDFWLFH )RU 0DUWLQ %URV]DW WKH LGHD GHYHORSHG
IURP SUDFWLFH²VSRUDGLF PXUGHUV RI JURXSV RI -HZV OHG WR WKH LGHD WR NLOO DOO
-HZV VVWHPDWLFDOO´
7KH FRQVWUXFWLRQV GHVFULEHG E %URZQLQJ RI /XF 'DZLGRZLF] DQG
0DUWLQ %URV]DW DV H[WUHPH UHSUHVHQWDWLYHV RI WKH ,QWHQWLRQDOLVWV DQG WKH
)XQFWLRQDOLVWV DUH ERWK HTXDOO XQWHQDEOH
)LUVW DV WR WKH WKHRU SURSRXQGHG E /XF 'DZLGRZLF] WKDW WKH H[WHU
PLQDWLRQ RI WKH -HZV ZDV WKH ³JUHDW SODQ´ RI +LWOHU ORQJ EHIRUH KLV DFFHV
VLRQ WR SRZHU ,I WKLV ZHUH VR +LWOHU ZRXOG QHYHU KDYH SXUVXHG IRU HDUV RQ
HQG D VLQJOHPLQGHG GHPDQG IRU -HZLVK HPLJUDWLRQ ,W LV XQGLVSXWHG WKDW 16
SROLF GXULQJ WKH VL[ HDUV RI SHDFH WKDW WKH 7KLUG 5HLFK HQMRHG ZDV
GLUHFWHG DW PRWLYDWLQJ DV PDQ -HZV DV SRVVLEOH WR HPLJUDWH 7R DFKLHYH WKLV
DLP DV LV ZHOO NQRZQ WKH 1DWLRQDO 6RFLDOLVWV ZRUNHG FORVHO ZLWK =LRQLVW
IRUFHV ZKR ZHUH LQWHUHVWHG LQ WKH VHWWOHPHQW RI DV PDQ -HZV DV SRVVLEOH LQ
3DOHVWLQH
+RZHYHU WKH QXPEHU RI -HZV ZKR ZHUH ZLOOLQJ WR ULVN DQ
XQFHUWDLQ IXWXUH LQ WKH 2ULHQW ZDV OLPLWHG
5DXO +LOEHUJ KDV GHVFULEHG LQ GHWDLO KRZ LQWHQVLYHO WKH 1DWLRQDO
6RFLDOLVWV SXVKHG -HZLVK HPLJUDWLRQ +H UHODWHV KRZ WKH 1DWLRQDO 6RFLDOLVWV
H[HUWHG WKHPVHOYHV WR SHUVXDGH WHQ WKRXVDQG 3ROLVK -HZV ZKR VWLOO OLYHG LQ
*HUPDQ LQ

84. WR UHWXUQ WR 3RODQG DQG KRZ WKH ODWWHU UHIXVHG WR WDNH
EDFN LWV -HZLVK IHOORZ FLWL]HQV S '(- S

85. 2QH VKRXOG WDNH QRWH
WKDW DIWHU ILYH HDUV RI +LWOHU¶V UXOH WHQ WKRXVDQG 3ROLVK -HZV SUHIHUUHG FRQ
GLWLRQV LQ WKH DQWL6HPLWLF 7KLUG 5HLFK WR WKRVH RI WKHLU QDWLYH 3RODQG
$W WKH WLPH RI +LWOHU¶V DFFHVVLRQ WR SRZHU -HZV OLYHG LQ *HU
PDQ 'XH WR HPLJUDWLRQ DQG DQ H[FHVV RI GHDWKV RYHU ELUWKV E WKHLU
QXPEHU KDG GZLQGOHG WR EXW WKH $QVFKOXVV ZLWK $XVWULD EURXJKW DQ
DGGLWLRQDO $XVWULDQ -HZV S '(- S

86. ,Q UHVSRQVH RQ
WK $XJXVW 5HLFKVNRPPLVVDU %UFNHO²KH KDG DGPLQLVWUDWLYH
UHVSRQVLELOLW IRU WKH UHXQLRQ RI $XVWULD DQG WKH 5HLFK²VHW XS D ³HQWUDO
2IILFH IRU -HZLVK (PLJUDWLRQ´ %UFNHO¶V PHWKRG ZDV VRRQ IROORZHG
WKURXJKRXW WKH 5HLFK 2Q WK -DQXDU *|ULQJ RUGHUHG WKH IRXQGLQJ
2Q 1DWLRQDO 6RFLDOLVW=LRQLVW FRRSHUDWLRQ VHH IRU H[DPSOH (GZLQ %ODFN 7KH 7UDQVIHU $JUHHPHQW
1HZ RUN/RQGRQ )UDQFLV 1LFRVLD +LWOHU XQG GHU =LRQLVPXV 'UXIIHO 9HUODJ /HRQL

87. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
RI D 5HLFK HQWUDO 2IILFH IRU -HZLVK (PLJUDWLRQ DQG SXW 5HLQKDUG +HGULFK
LQ FKDUJH SS I '(- S

88. 7KH EHJLQQLQJ RI ZDU GLG QRW DOWHU WKH IXQGDPHQWDO GLUHFWLRQ RI
1DWLRQDO 6RFLDOLVW -HZLVK SROLF 1DWXUDOO WKH GLIILFXOWLHV ZHUH PDJQLILHG
E WKH IDFW WKDW WKH QXPEHU RI -HZV KDG JURZQ E WKH DGGLWLRQ RI D PDVVLYH
QXPEHU RI IRUHLJQ PDLQO 3ROLVK -HZV 7KH *HUPDQ DUHD RI LQIOXHQFH LQ
(XURSH FRXOG QRZ QR ORQJHU EH PDGH µ-HZIUHH¶ MXGHQUHLQ

89. ²WKLV LV WKH
1DWLRQDO 6RFLDOLVW WHUP²E LQGLYLGXDO HPLJUDWLRQ 7KHUHIRUH WKH 16 OHDG
HUV WXUQHG WKHLU DWWHQWLRQ WR WKH 0DGDJDVFDU 3ODQ 2Q WKLV VXEMHFW 5DXO +LO
EHUJ FRPPHQWV
³7KH 0DGDJDVFDU 3URMHFW ZDV GHVLJQHG WR WDNH FDUH RI PLOOLRQV RI
-HZV 7KH DXWKRUV RI WKH SODQ ZDQWHG WR HPSW WKH 5HLFK3URWHNWRUDWH DUHD
DQG DOO RI RFFXSLHG 3RODQG RI WKHLU -HZLVK SRSXODWLRQ «@
%XW WKH 0DGDJDVFDU 3ODQ GLG QRW PDWHULDOL]H ,W KLQJHG RQ WKH FRQ
FOXVLRQ RI D SHDFH WUHDW ZLWK )UDQFH DQG VXFK D WUHDW GHSHQGHG RQ DQ HQG
RI KRVWLOLWLHV ZLWK (QJODQG «@
(YHQ DV LW IDGHG WKH SURMHFW ZDV WR EH PHQWLRQHG RQH PRUH WLPH GXU
LQJ HDUO )HEUXDU LQ +LWOHU¶V KHDGTXDUWHUV 2Q WKDW RFFDVLRQ WKH
SDUW¶V ODERU FKLHI /H EURXJKW XS WKH -HZLVK TXHVWLRQ DQG +LWOHU DQVZHU
LQJ DW OHQJWK SRLQWHG RXW WKDW WKH ZDU ZDV JRLQJ WR DFFHOHUDWH WKH VROXWLRQ
RI WKLV SUREOHP EXW WKDW KH ZDV DOVR HQFRXQWHULQJ DGGLWLRQDO GLIILFXOWLHV
2ULJLQDOO KH KDG EHHQ LQ D SRVLWLRQ WR DGGUHVV KLPVHOI DW PRVW WR WKH -HZV
RI *HUPDQ EXW QRZ WKH JRDO KDG WR EH WKH HOLPLQDWLRQ RI -HZLVK LQIOXHQFH
LQ WKH HQWLUH $[LV SRZHU VSKHUH «@ +H ZDV JRLQJ WR DSSURDFK WKH )UHQFK
DERXW 0DGDJDVFDU :KHQ %RUPDQQ DVNHG KRZ WKH -HZV FRXOG EH WUDQV
SRUWHG WKHUH LQ WKH PLGGOH RI WKH ZDU +LWOHU UHSOLHG WKDW RQH ZRXOG KDYH WR
FRQVLGHU WKDW +H ZRXOG EH ZLOOLQJ WR PDNH DYDLODEOH WKH HQWLUH *HUPDQ IOHHW
IRU WKLV SXUSRVH EXW KH GLG QRW ZLVK WR H[SRVH KLV FUHZV WR WKH WRUSHGRHV RI
HQHP VXEPDULQHV´ SS I '(- SS I

90. +DG +LWOHU DV /XF 'DZLGRZLF] DQG RWKHU ,QWHQWLRQDOLVWV FODLP
SODQQHG IRU WKH H[WHUPLQDWLRQ RI WKH -HZV DQG HYHQ IRUHVHHQ WKDW WKLV JRDO
FRXOG EH DFKLHYHG LQ WKH IUDPHZRUN RI D ZRUOG ZDU KH ZRXOG QHYHU KDYH
PDGH DQ HIIRUWV WR HQFRXUDJH -HZLVK HPLJUDWLRQ DQG ZRXOG KDYH EORFNHG
DQ VXFK HIIRUWV HVSHFLDOO DIWHU WKH ZDU KDG EHJXQ 7KHUH ZRXOG QHYHU KDYH
EHHQ DQWKLQJ OLNH D 0DGDJDVFDU 3ODQ VSRQVRUHG E WKH 16 OHDGHUVKLS
(PLJUDWHG -HZV DUH QRW VXEMHFW WR H[WHUPLQDWLRQ
7KH RSSRVLQJ WKHRU WKDW RI WKH UDGLFDO )XQFWLRQDOLVWV DURXQG
%URV]DW VWDQGV LQ LUUHFRQFLODEOH FRQWUDGLFWLRQ ZLWK WKH FODLPV RI WKH DGKHU
HQWV RI WKH WKHRU RI -HZLVK DQQLKLODWLRQ DQG DOVR ZLWK RWKHU FODLPV RI WKH
)XQFWLRQDOLVWV WKHPVHOYHV
$V %URZQLQJ VXPPDUL]HG LQ KLV SUHVHQWDWLRQ DW WKH 3DULV ROOR
TXLXP %URV]DW EHOLHYHV WKDW ORFDO PDVVDFUHV RI -HZV OHG WR WKH SODQ WR NLOO

91. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
DOO -HZV WKXV WKH LGHD GHYHORSHG IURP WKH SUDFWLFDO VLWXDWLRQ LWVHOI 7KH PLO
LWDU UHYHUVHV RQ WKH HDVWHUQ IURQW KDG FDXVHG WKH EXIIHU ]RQHV WR GLVDSSHDU
LQ ZKLFK LW ZDV LQWHQGHG WR UHPRYH WKH -HZV 7KLV FRQWUDGLFWV WKH YLHZ KHOG
E WKH RUWKRGR[ KLVWRULDQV WKDW WKH PDVV PXUGHUV EHKLQG WKH HDVWHUQ IURQW
EHJDQ LQ HDUQHVW LPPHGLDWHO DIWHU WKH *HUPDQ LQYDVLRQ RI WKH 6RYLHW
8QLRQ 7KH ODUJHVW RI WKH FODLPHG PDVV VKRRWLQJV WKDW RI %DEL DU QHDU
.LHY VXSSRVHGO KDSSHQHG RQ WK 6HSWHPEHU DW D WLPH ZKHQ WKH
:HKUPDFKW KDG VXIIHUHG QR VLJQLILFDQW UHYHUVHV $OO -HZV LQ .LHY WKH *HU
PDQV FRXOG JHW WKHLU KDQGV RQ LQ WRWDO PRUH WKDQ ZHUH VXSSRVHGO
VKRW LQ %DEL DU ,Q WKH IROORZLQJ PRQWKV WHQV RI WKRXVDQGV PRUH -HZLVK
YLFWLPV DOOHJHGO IROORZHG WKHP
2QH FDQQRW H[FOXGH WKDW WKHUH ZHUH VKRRWLQJV RI -HZV VKRUWO DIWHU
WKH EHJLQQLQJ RI WKH *HUPDQ6RYLHW :DU DQG ZH ZLOO GLVFXVV WKLV TXHVWLRQ
LQ WKH QH[W FKDSWHU )RU WKH PRVW SDUW WKH ZHUH UHSULVDOV IRU DWWDFNV RI SDUWL
VDQV DJDLQVW *HUPDQ WURRSV 7KH ³RPPLVVDU 2UGHU´ IRU WKH VKRRWLQJ RI
-HZLVK%ROVKHYLVW FRPPLVVDUV LV QRW SHUWLQHQW KHUH EHFDXVH LW GHDOV ZLWK
WKH NLOOLQJ RI LQGLYLGXDO SHUVRQV LGHQWLILHG E IXQFWLRQ DQG QRW WKH LQGLV
FULPLQDWH VODXJKWHU RI FLYLOLDQV EHFDXVH RI WKHLU µUDFH¶

92. $ PRQVWURXV EORRG
EDWK OLNH WKDW FODLPHG IRU %DEL DU FRXOG QHYHU KDYH KDSSHQHG ZLWKRXW WKH
SHUPLVVLRQ RI WKH KLJKHVW DXWKRULW 1R ORFDO FRPPDQGHU ZRXOG KDYH GDUHG
WR XQGHUWDNH D PHDVXUH IUDXJKW ZLWK VXFK KHDY FRQVHTXHQFHV ZLWKRXW
DVVXUDQFH RI VXSSRUW IURP KLJKHU DXWKRULW 7KXV WKH DOOHJHG PXUGHU RI DOO
-HZV UHPDLQLQJ LQ .LHY DIWHU WKH *HUPDQV HQWHUHG ZRXOG RQO EH FRQFHLY
DEOH DV D FRPSRQHQW RI D SODQQHG H[WHUPLQDWLRQ SROLF $OVR LI WKH %DEL DU
VWRU LV WUXH VXFK D SROLF PXVW KDYH DOUHDG H[LVWHG E WKH HQG RI 6HSWHP
EHU
/HW XV SXUVXH WKLV DUJXPHQW IXUWKHU KHåPQR .XOPKRI LQ *HUPDQ

93. LV VXSSRVHG WR KDYH EHHQ RSHQHG DV WKH ILUVW µH[WHUPLQDWLRQ FDPS¶ LQ
'HFHPEHU +LOEHUJ S '(- S

94. ,I +LOEHUJ LV ULJKW WKH RUGHU
WR EXLOG LW PXVW KDYH EHHQ LVVXHG VRPH WLPH EHIRUH EHFDXVH D FDPS GRHV
QRW VSULQJ XS RYHUQLJKW 1RZ LW LV QRW SRVVLEOH WKDW VRPH UDQGRP ORFDO *HU
PDQ DXWKRULWLHV GHFLGHG RQ WKHLU RZQ DFFRXQW WR EXLOG DQ H[WHUPLQDWLRQ
FDPS %XW KHUH DOVR WKH H[LVWHQFH RI DQ RUGHU IURP KLJKHU DXWKRULW LV DQ
DEVROXWH SUHFRQGLWLRQ
7KLV LPSOLHV WKH EDQNUXSWF RI %URV]DW¶V )XQFWLRQDOLVW WKHRU LQ
ZKLFK WKH +RORFDXVW FRPHV DERXW DV WKH UHVXOW RI WKH ILUVW *HUPDQ UHYHUVHV
)RU WKH RIILFLDO GHVFULSWLRQ RI %DEL DU VHH (5 :LHQ 'LH 6KRD YRQ %DEL -DU +DUWXQJ*RUUH
RQVWDQFH +LOEHUJ PHQWLRQV WKH VXSSRVHG PDVVDFUH RQ S '(- S

95. DQG RWKHU SODFHV

96. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
RQ WKH HDVWHUQ IURQW DQG ZH FRPH EDFN WR WKH LQWHQWLRQDOLVW TXHVWLRQ :KHQ
GLG WKH RUGHU WR H[WHUPLQDWH WKH -HZV JR RXW
,Q KLV SUHVHQWDWLRQ DW WKH 3DULV ROORTXLXP KULVWRSKHU %URZQLQJ
DGGHG WKH IROORZLQJ WR KLV GHVFULSWLRQ RI WKH WKHRULHV RI /XF 'DZLGRZLF]
DQG 0DUWLQ %URV]DW
³%HWZHHQ WKHVH WZR H[WUHPH SROHV WKHUH DUH D QXPEHU RI SRVLWLRQV
RFFXSLQJ LQWHUSUHWLYH PLGGOH JURXQG (EHUKDUG -lFNHO EHOLHYHV WKH LGHD IRU
WKH NLOOLQJ RI WKH -HZV FDPH WR +LWOHU VRPH WLPH DURXQG .DUO 'LHWULFK
%UDFKHU HPSKDVL]HV +LWOHU¶V WKUHDWHQLQJ GHFODUDWLRQV DW WKH HQG RI WKH µ¶V
DQG EHOLHYHV KLV LQWHQWLRQV ZHUH DOUHDG VHWWOHG $QGUHDV +LOOJUXEHU DQG
.ODXV +LOGHEUDQG PDLQWDLQ WKDW LGHRORJLFDO IDFWRUV ZHUH FRQWUROOLQJ EXW GR
QRW SURSRVH DQ ILUP GDWH 2WKHUV DQG QRW )XQFWLRQDOLVWV RQO EHOLHYH WKH
GHFLVLYH SRLQW ZDV LQ /pRQ 3ROLDNRY WKLQNV WKDW WKH EHJLQQLQJ RI
LV WKH PRVW SUREDEOH SRLQW ZKLOH 5REHUW .HPSQHU DQG +HOPXW .UDXVQLFN
KROG WKH RSLQLRQ WKDW +LWOHU PDGH WKH GHFLVLRQ LQ WKH VSULQJ ZKLOH SUHSDUD
WLRQV IRU WKH LQYDVLRQ RI 5XVVLD ZHUH XQGHU ZD «@ 8ZH 'LHWULFK $GDP
LQFOLQHV WR WKH LGHD WKDW WKH GHFLVLRQ ZDV WDNHQ LQ WKH IDOO DW D WLPH ZKHQ WKH
PLOLWDU RIIHQVLYH KDG VWDOOHG DQG WKH µWHUULWRULDO VROXWLRQ¶ WKURXJK PDVV
H[SXOVLRQ WR 5XVVLD EHFDPH LPSRVVLEOH )LQDOO 6HEDVWLDQ +DIIQHU ZKR LV
FHUWDLQO QR )XQFWLRQDOLVW GHIHQGV WKH GDWH RI WKH EHJLQQLQJ RI 'HFHPEHU
ZKHQ WKH ILUVW IRUHERGLQJ RI D PLOLWDU GHIHDW GURYH +LWOHU WR VWULYH IRU DQ
LUUHYRFDEOH YLFWRU RYHU WKH -HZV´
7KHVH REVHUYDWLRQV H[SRVH ZLWK KDUVK FODULW WKH FKURQRORJLFDO WUDY
HVWLHV E WKH RUWKRGR[ µ+RORFDXVW¶ KLVWRULDQV ZKLFK UHGXFH WKHP WR LGOH
FRQVSLUDWRULDO VSHFXODWLRQV LQ FXFNRR ODQG $OO WKH SURSRVHG GDWHV ODFN DQ
VHULRXV IRXQGDWLRQ LQ WKDW WKHUH LV QRW RQH ZLWK DQ GRFXPHQWDU VXSSRUW
,QVWHDG RI LQGXOJLQJ LQ XVHOHVV VSHFXODWLRQ DV WR D SRLQW LQ WLPH ZKHQ WKH
DQQLKLODWLRQ RI WKH -HZV ZDV GHFLGHG XSRQ WKHVH DFDGHPLFV ZRXOG KDYH
GRQH EHWWHU WR VWXG WKH TXHVWLRQ ILUVW ZKHWKHU VXFK D WKLQJ HYHU H[LVWHG
7KLV FDUGLQDO TXHVWLRQ ZDV SUXGHQWO DYRLGHG DW WKH 3DULV KLVWRULDQV¶ FRQ
JUHVV DV ZHOO DV DW WKH 6WXWWJDUW KLVWRULDQV¶ FRQJUHVV KHOG WZR HDUV ODWHU $W
WKH ODWWHU DV ZHOO WKH TXHVWLRQ RI WKH GDWH ZKHQ WKH IDWHIXO GHFLVLRQ ZDV
PDGH ZDV WRUWXUHG WR GHDWK 7KH FRQJUHVV SDUWLFLSDQWV FDPH QR QHDUHU DQ
DQVZHU WKHQ WKDQ WZR HDUV EHIRUH LQ 3DULV
,W LV QRWDEOH WKDW QRQH RI WKH UHVHDUFKHUV QDPHG E %URZQLQJ KHOG WR
WKH ROG IDLU WDOH WKDW WKH GHFLVLRQ IRU WKH DQQLKLODWLRQ RI WKH -HZV ZDV WDNHQ
DW WKH :DQQVHH RQIHUHQFH LQ %HUOLQ RQ WK -DQXDU ,Q WKH
,VUDHOL µ+RORFDXVW¶ H[SHUW HKXGD %DXHU GHULGHG WKLV WRXJK ROG PWK DV D
³VLOO VWRU´
KULVWRSKHU %URZQLQJ RS FLW QRWH

97. S
DQDGLDQ -HZLVK 1HZV WK -DQXDU

98. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
5DXO +LOEHUJ¶V (UURUV DQG RQIXVLRQV
D :DV 7KHUH WKH 2PLQRXV +LWOHU 2UGHU RU 1RW
2Q WKH FDUGLQDO TXHVWLRQ ZKHWKHU +LWOHU HYHU JDYH DQ H[SUHVV RUGHU
IRU WKH SKVLFDO H[WLQFWLRQ RI WKH -HZV SUHVHQW LQ KLV DUHD RI FRQWURO +LOEHUJ
JLYHV GLIIHUHQW DQVZHUV LQ WKH ILUVW DQG LQ WKH UHYLVHG HGLWLRQ RI KLV ZRUN ,Q
WKH ILUVW HGLWLRQ SXEOLVKHG LQ KH DVVHUWHG WKDW WKHUH KDG EHHQ WZR VXF
FHVVLYH +LWOHU RUGHUV WR WKLV HIIHFW WKH ILUVW UHJDUGLQJ WKH NLOOLQJ RI 5XVVLDQ
-HZV DQG WKH VHFRQG UHJDUGLQJ WKH DQQLKLODWLRQ RI DOO RWKHU -HZV OLYLQJ
XQGHU *HUPDQ UXOH +H JDYH QR GRFXPHQWDU SURRI IRU WKHVH RUGHUV :H
TXRWH WKH UHOHYDQW SDVVDJH
³+RZ ZDV WKH NLOOLQJ SKDVH EURXJKW DERXW %DVLFDOO ZH DUH GHDOLQJ
ZLWK WZR RI +LWOHU¶V GHFLVLRQV 2QH RUGHU ZDV JLYHQ LQ WKH VSULQJ RI
GXULQJ WKH SODQQLQJ RI WKH LQYDVLRQ RI WKH 8665 LW SURYLGHG WKDW VPDOO XQLWV
RI WKH 66 DQG 3ROLFH EH GLVSDWFKHG WR 6RYLHW WHUULWRU ZKHUH WKH ZHUH WR
PRYH IURP WRZQ WR WRZQ WR NLOO DOO -HZLVK LQKDELWDQWV RQ WKH VSRW 7KLV
PHWKRG PD EH FDOOHG WKH µPRELOH NLOOLQJ RSHUDWLRQV¶ 6KRUWO DIWHU WKH
PRELOH RSHUDWLRQV KDG EHJXQ LQ WKH RFFXSLHG 6RYLHW WHUULWRULHV +LWOHU
KDQGHG GRZQ KLV VHFRQG RUGHU 7KDW GHFLVLRQ GRRPHG WKH UHVW RI (XURSHDQ
-HZU´
,Q WKH VHFRQG DQG ³GHILQLWLYH´ HGLWLRQ ZKLFK DSSHDUHG LQ RQ
ZKLFK WKH *HUPDQ WUDQVODWLRQ ZH XVH ZDV EDVHG ERWK RI WKHVH SKDQWRP
RUGHUV GLVDSSHDU ZLWKRXW D WUDFH KULVWRSKHU %URZQLQJ WR KLV FUHGLW
UHPDUNHG RQ WKLV LQ DQ DUWLFOH ZULWWHQ LQ
³,Q WKH QHZ HGLWLRQ DOO UHIHUHQFHV LQ WKH WH[W WR D +LWOHU GHFLVLRQ RU
+LWOHU RUGHU IRU WKH µ)LQDO 6ROXWLRQ¶ ZKLFK %URZQLQJ XQGHUVWDQGV WR PHDQ
SKVLFDO H[WHUPLQDWLRQ@ KDYH EHHQ VVWHPDWLFDOO H[FLVHG´
7KLV LV D GHYDVWDWLQJ EORZ WR +LOEHUJ¶V FUHGLELOLW 2I FRXUVH +LOEHUJ
VWLOO DVVXPHV WKDW +LWOHU KDG LQLWLDWHG WKH DQQLKLODWLRQ RI WKH -HZV ,Q
KH ZURWH
³)RU HDUV WKH DGPLQLVWUDWLYH PDFKLQH KDG WDNHQ LWV LQLWLDWLYHV DQG
HQJDJHG LQ LWV IRUDV RQH VWHS DW D WLPH ,Q WKH FRXUVH RI WKDW HYROXWLRQ D
GLUHFWLRQ KDG EHHQ FKDUWHG DQG D SDWWHUQ KDG EHHQ HVWDEOLVKHG % WKH PLG
GOH RI WKH GLYLGLQJ OLQH KDG EHHQ UHDFKHG DQG EHRQG LW OD D ILHOG RI
XQSUHFHGHQWHG DFWLRQV XQKLQGHUHG E WKH OLPLWV RI WKH SDVW 0RUH DQG PRUH
RI WKH SDUWLFLSDQWV ZHUH RQ WKH YHUJH RI UHDOL]LQJ WKH QDWXUH RI ZKDW FRXOG
KDSSHQ QRZ 6DOLHQW LQ WKLV FUVWDOOL]DWLRQ ZDV WKH UROH RI $GROI +LWOHU KLP
5DXO +LOEHUJ 7KH 'HVWUXFWLRQ RI WKH (XURSHDQ -HZV 4XDGUDQJOH %RRNV KLFDJR S
7KLV LV DQ XQFKDQJHG UHSULQW RI WKH ILUVW HGLWLRQ SXEOLVKHG LQ :H WKDQN 5REHUW )DXULVVRQ IRU
SRLQWLQJ RXW WKH PHQWLRQ RI WKH VXSSRVHG +LWOHU RUGHU DV ZHOO DV VHQGLQJ WKH SDJHV LQYROYHG
KULVWRSKHU %URZQLQJ ³7KH 5HYLVHG +LOEHUJ´ LQ 6LPRQ :LHVHQWKDO HQWHU $QQXDO S

99. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
VHOI KLV VWDQFH EHIRUH WKH ZRUOG DQG PRUH VSHFLILFDOO KLV ZLVKHV RU H[SHF
WDWLRQV YRLFHG LQ DQ LQQHU FLUFOH´ S '(- SS I

100. %HKLQG WKHVH WXUJLG SDVVDJHV KLGHV WKH SUHVXSSRVLWLRQ WKDW +LWOHU SHU
VRQDOO FRPPDQGHG WKH DQQLKLODWLRQ RI WKH -HZV 2QH FRXOG WKHUHIRUH
GHVFULEH +LOEHUJ DV D µPRGHUDWH ,QWHQWLRQDOLVW¶ 7KH LQIRUPDQW XSRQ ZKRP
KH UHOLHV LV $GROI (LFKPDQQ 7KH ODWWHU ZURWH LQ KLV PHPRLUV WKDW DW WKH WXUQ
RI WKH HDU 5HLQKDUG +HGULFK FKLHI RI WKH 56+$ WROG KLP WKDW
WKH )KUHU KDG GHFUHHG WKH SKVLFDO GHVWUXFWLRQ RI WKH -HZV
+LOEHUJ VDV
WKLV LQ IRRWQRWH RQ SS I '(- S

101. DQG FRQWLQXHV
³'XULQJ KLV LQWHUURJDWLRQ E ,VUDHOL SROLFH LQ -HUXVDOHP KH (LFK
PDQQ@ VXJJHVWHG PRUH SODXVLEO WKDW +LWOHU¶V RUGHU KDG FRPH WZR RU WKUHH
PRQWKV DIWHU WKH -XQH *HUPDQ DVVDXOW RQ WKH 8665 «@ KURQRORJ DQG
FLUFXPVWDQFHV SRLQW WR D +LWOHU GHFLVLRQ EHIRUH WKH VXPPHU HQGHG´
7KDW VXFK D FUXFLDO VWDWHPHQW FRXOG EH UHOHJDWHG WR D IRRWQRWH JLYHV
VRPH LQNOLQJ RI +LOEHUJ¶V KHOSOHVV SHUSOH[LW +LOEHUJ QRZ UHOLHV RQ D VXJ
JHVWLRQ

102. IURP (LFKPDQQ ZKR KLPVHOI UHOLHG RQ DOOHJHG KHDUVD HYLGHQFH
$W WKH 6WXWWJDUW RQJUHVV LQ +LOEHUJ DJDLQ RSLQHG WKDW +LWOHU
KDG JLYHQ WKH GHFLVLRQ IRU WKH H[WHUPLQDWLRQ RI WKH -HZV²QDWXUDOO RQO
YHUEDOO ²LQ VXPPHU
7KH GDWH JLYHQ E +LOEHUJ LV DIWHU )HEUXDU
ZKHQ WKH 0DGDJDVFDU 3ODQ ZDV VHULRXVO FRQVLGHUHG IRU WKH ODVW WLPH
EXW EHIRUH WKH FODLPHG PDVVDFUH RI %DEL DU DQG WKH DOOHJHG EHJLQQLQJ RI
RSHUDWLRQV RI WKH µH[WHUPLQDWLRQ FDPS¶ KHåPQR % VR GRLQJ +LOEHUJ
DYRLGHG WKH UDGLFDO LPSRVVLELOLWLHV RQ ZKLFK WKH WKHRULHV RI /XF 'DZLGRZ
LF] DQG 0DUWLQ %URV]DW ZHUH VR ZHDNO IRXQGHG
-XVW DV OLWWOH DV 'DZLGRZLF] %URV]DW DQG DOO RWKHU ,QWHQWLRQDOLVW DQG
)XQFWLRQDOLVW µ+RORFDXVW¶ KLVWRULDQV +LOEHUJ FDQQRW SURGXFH HYHQ D VLQJOH
GRFXPHQW WR VXSSRUW KLV KSRWKHVLV 0RUHRYHU KH FRQWUDGLFWV KLPVHOI LQ
WKDW KH UHSHDWHGO FRQMXUHV XS DQ ³DQQLKLODWLRQ SROLF´ DQ ³DQQLKLODWLRQ
SURFHVV´ DQG ³DQQLKLODWLRQ PDFKLQHU´ EHIRUH WKH EHJLQQLQJ RI WKH *HU
PDQ6RYLHW ZDU ,Q FRQQHFWLRQ ZLWK WKH ODVW GHOLEHUDWLRQV E +LWOHU RQ WKH
0DGDJDVFDU 3ODQ WKDW KDSSHQHG LQ )HEUXDU KH ZULWHV
³:KLOH +LWOHU ZDV WKLQNLQJ WKH PDFKLQHU RI GHVWUXFWLRQ ZDV SHUPH
DWHG ZLWK D IHHOLQJ RI XQFHUWDLQW ,Q WKH *HQHUDOJRXYHUQHPHQW ZKHUH JKHW
WRL]DWLRQ ZDV YLHZHG DV D WUDQVLWLRQDO PHDVXUH WKH XQVLJKWO -HZLVK
TXDUWHUV ZLWK WKHLU LPSRYHULVKHG FURZGV ZHUH WULQJ WKH SDWLHQFH RI ORFDO
*HUPDQ RIILFLDOV 7KHVH LUULWDWLRQV DQG IUXVWUDWLRQV ZHUH H[SUHVVHG LQ
PRQWKO UHSRUWV E WKH ODWH VXPPHU RI ,Q WKH /XEOLQ 'LVWULFW WKH .UHLV
KDXSWPDQQ RI .UDQVWDZ VXUIHLWHG ZLWK KLV DGPLQLVWUDWLYH WDVNV LQ 6HS
$GROI (LFKPDQQ ,FK $GROI (LFKPDQQ 'UXIIHO 9HUODJ /HRQL S
( -lFNHO - 5RKZHU HGV

103. RS FLW QRWH

104. S

105. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
WHPEHU @ LQVLVWHG WKDW -HZV ZKR KDG 3RORQL]HG WKHLU QDPHV VSHOO WKHP
LQ *HUPDQ²LQ 0DGDJDVFDU KH VDLG WKH FRXOG KDYH 0DGDJDVFDULDQ
QDPHV
´ S '(- S

106. ,I D

107. +LWOHU GHFLGHG RQ WKH DQQLKLODWLRQ RI WKH -HZV LQ $XJXVW RU 6HS
WHPEHU DQG E

108. ORFDO *HUPDQ RIILFLDOV ZHUH SUHGLFWLQJ IRU WKH -HZV D
IXWXUH LQ 0DGDJDVFDU LQ 6HSWHPEHU LW PDNHV QR VHQVH WR WDON DERXW D
³PDFKLQHU RI GHVWUXFWLRQ´ H[LVWLQJ LQ 6HSWHPEHU
(OHPHQWDU P GHDU :DWVRQ
E³1R 6SHFLDO $JHQF« 1R 6SHFLDO %XGJHW´
$Q DQQLKLODWLRQ SROLF QHFHVVDULO SUHVXSSRVHV D PHFKDQLVP IRU LWV
H[HFXWLRQ DQG WKLV PHFKDQLVP PXVW QHHGV EH KHOG LQ WKH KDQGV RI D FHQWUDO
DXWKRULW LQYHVWHG ZLWK WKH UHTXLVLWH SRZHUV %XW QR +LOEHUJ VDV WKHUH ZDV
QR VXFK WKLQJ DOUHDG LQ WKH ILUVW YROXPH KH KDV ZULWWHQ
³,Q WKH ILQDO DQDOVLV WKH GHVWUXFWLRQ RI WKH -HZV ZDV QRW VR PXFK D
SURGXFW RI ODZV DQG FRPPDQGV DV LW ZDV D PDWWHU RI VSLULW RI VKDUHG FRP
SUHKHQVLRQ RI FRQVRQDQFH DQG VQFKURQL]DWLRQ
:KR VKDUHG LQ WKLV XQGHUWDNLQJ :KDW NLQG RI PDFKLQHU ZDV XVHG
IRU WKHVH WDVNV 7KH PDFKLQH RI GHVWUXFWLRQ ZDV DQ DJJUHJDWH²QR RQH
DJHQF ZDV FKDUJHG ZLWK WKH ZKROH RSHUDWLRQ «@
1R VSHFLDO DJHQF ZDV FUHDWHG DQG QR VSHFLDO EXGJHW ZDV GHYLVHG WR
GHVWUR WKH -HZV RI (XURSH (DFK RUJDQL]DWLRQ ZDV WR SOD D VSHFLILF UROH LQ
WKH SURFHVV DQG HDFK ZDV WR ILQG WKH PHDQV WR FDUU RXW LWV WDVN´ SS
'(- SS

109. 3LFWXUH WKDW D SURMHFW IRU D PDPPRWK XQGHUWDNLQJ²FRPSOLFDWHG E
WKH FRQGLWLRQV RI ZDU²LQFOXGLQJ WKH FRQVWUXFWLRQ RI µH[WHUPLQDWLRQ FDPSV¶
DQG WKH GHSRUWDWLRQ RI PLOOLRQV RI SHUVRQV IURP HYHU ZKLFK FRXQWU LQWR
WKH FDPSV²DQG WKLV DOO VKRXOG EH GRQH ZLWKRXW D UHVSRQVLEOH FHQWUDO
DXWKRULW D VSHFLDO RIILFH RU D VSHFLDO EXGJHW
5DXO +LOEHUJ WRRN SDUW LQ WKH 3DULV +LVWRULDQ¶V RQJUHVV LQ WKH
VXEMHFW RI KLV SUHVHQWDWLRQ ZDV ³7KH %XUHDXFUDF RI WKH )LQDO 6ROXWLRQ´
+LOEHUJ UHYHDOHG ZKDW ZRXOG KDYH EHHQ QHFHVVDU WR FDUU RXW WKH DQQLKLOD
WLRQ RI WKH -HZV QDPHO

110. UDLOURDGV

111. SROLFH DQG HVSHFLDOO

112. GHGLFDWHG
EXUHDXFUDWV
+RZ VRSKLVWLFDWHG :KHQ D VWDWH KDV GHFLGHG WR GHSRUW PLOOLRQV RI
SHUVRQV IURP DQ FRXQWU E WUDLQ WR GHDWK IDFWRULHV DQG WKHQ WR NLOO WKHP
WKHUH LW ZRXOG LQ IDFW QHHG UDLOURDGV WR FDUU WKH WUDLQV LW ZRXOG FHUWDLQO
QHHG SROLFHPHQ WR JXDUG WKH FRQGHPQHG DQG LWV EXUHDXFUDWV VKRXOG QRW EH
+LOEHUJ¶V SDSHU LV LQFOXGHG LQ /¶$OOHPDJQH QD]LH HW OH JpQRFLGH MXLI RS FLW QRWH

113. SS II

114. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
WRR WHQGHUKHDUWHG 2QH GRHV QRW KDYH WR EH D SURIHVVRU DW WKH 8QLYHUVLW RI
9HUPRQW WR XQGHUVWDQG WKLV QRU WR KDYH ZULWWHQ WKH VWDQGDUG ZRUN RQ WKH
µ+RORFDXVW¶ 7KH EDQDOLWLHV KDZNHG E +LOEHUJ GR QRW LQ DQ ZD UHSODFH
WKH PLVVLQJ SURRI RI DQ H[WHUPLQDWLRQ SROLF
F 7KH 0WK RI WKH RGH /DQJXDJH
/DFNLQJ GRFXPHQWDU SURRI IRU D *HUPDQ SROLF RI DQQLKLODWLRQ RI
WKH -HZV +LOEHUJ UHVRUWV WR D GRGJH RQH WKDW KDV HQMRHG JUHDW SRSXODULW
DPRQJ RUWKRGR[ µ+RORFDXVW¶ VFKRODUV IRU D ORQJ WLPH DQG ZKRVH RULJLQ FDQ
EH WUDFHG EDFN WR WKH 1XUHPEHUJ 7ULDOV 7KH ,WDOLDQ UHVHDUFKHU DUOR 0DW
WRJQR FKDUDFWHUL]HV LW DV IROORZV
³7KH 1XUHPEHUJ LQTXLVLWRUV LQYHQWHG «@ WKLV URXQGDERXW PHWKRG RI
VSHDNLQJ ZKLFK FRQVLVWHG LQ UHDGLQJ LQWR DQ SDUWLFXODU GRFXPHQW WKDW
ZKLFK RQH ZDQWHG LW WR VD 7KLV PHWKRG LV WKH EDVLV IRU WKH²DUELWUDU DQG
XQIRXQGHG²DVVXPSWLRQ WKDW WKH KLJK 16 DXWKRULWLHV XVHG D IRUP RI FRGH
ODQJXDJH HYHQ LQ WKHLU PRVW VHFUHW GRFXPHQWV ZKLFK WKH 1XUHPEHUJ LQTXLV
LWRUV QDWXUDOO FODLPHG WKH KDG WKH NH WR 7KLV ZDV WKH UHDVRQ IRU WKH VV
WHPDWLF WZLVWLQJ RI WKH PHDQLQJ RI RWKHUZLVH TXLWH LQQRFHQW GRFXPHQWV IRU
WKH SXUSRVH RI VXSSRUWLQJ WKH H[WHUPLQDWLRQ WKHRU´
+HUH LV DQ H[DPSOH $ORQJ ZLWK WKH :DQQVHH RQIHUHQFH DW ZKLFK
+LWOHU¶V GHFLVLRQ WR DQQLKLODWH WKH -HZV ZDV WR EH GLVFORVHG WR DQ DW ILUVW
VPDOO FLUFOH RI 16 EXUHDXFUDWV²WKLV LV +LOEHUJ¶V YHUVLRQ RI WKH SXUSRVH RI
WKLV FRQIHUHQFH²VXSSRVHGO
³*UDGXDOO WKH QHZV RI WKH µ)LQDO 6ROXWLRQ¶ VHHSHG WKURXJK WKH UDQNV
RI WKH EXUHDXFUDF 7KH NQRZOHGJH GLG QRW FRPH WR DOO RIILFLDOV DW RQFH +RZ
PXFK D PDQ NQHZ GHSHQGHG RQ KLV SUR[LPLW WR WKH GHVWUXFWLYH RSHUDWLRQV
DQG RQ KLV LQVLJKW LQWR WKH QDWXUH RI WKH GHVWUXFWLRQ SURFHVV 6HOGRP KRZ
HYHU ZDV FRPSUHKHQVLRQ UHFRUGHG RQ SDSHU :KHQ WKH EXUHDXFUDWV KDG WR
GHDO ZLWK GHSRUWDWLRQ PDWWHUV WKH NHSW UHIHUULQJ WR D µ-HZLVK PLJUDWLRQ¶ ,Q
RIILFLDO FRUUHVSRQGHQFH WKH -HZV ZHUH VWLOO µZDQGHULQJ¶ 7KH ZHUH µHYDFX
DWHG¶ HYDNXLHUW

115. DQG µUHVHWWOHG¶ XPJHVLHGHOW DXVJHVLHGHOW

116. 7KH µZDQ
GHUHG RII¶ ZDQGHUWHQ DE

117. DQG µGLVDSSHDUHG¶ YHUVFKZDQGHQ

118. 7KHVH WHUPV
ZHUH QRW WKH SURGXFW RI QDwYHWp EXW FRQYHQLHQW WRROV RI SVFKRORJLFDO
UHSUHVVLRQ´ S '(- S

119. 7KDW H[SUHVVLRQV VXFK DV ³UHVHWWOH´ DXVVLHGHOQ

120. ³HYDFXDWH´ HYDNX
LHUHQ

121. DQG VR IRUWK FDQ RQO EH FRGH ODQJXDJH IRU µNLOO¶ LV RI FRXUVH QRWKLQJ
EXW DQ DOOHJDWLRQ 0RUHRYHU HYHQ +LOEHUJ KDG WR DGPLW WKDW HYHQ DIWHU WKH
VXSSRVHG +LWOHU GHFLVLRQ WR H[WHUPLQDWH WKH -HZV PDQ -HZV ZHUH UHPRYHG
WR WKH RFFXSLHG WHUULWRULHV LQ WKH (DVW ZKLFK RQH PD FHUWDLQO GHVFULEH DV
DUOR 0DWWRJQR /D VROX]LRQH ILQDOH 3UREOHPL H SROHPLFKH (GL]LRQL GL $U 3DGXD SS I

122. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
µUHVHWWOHPHQW¶ $XVVLHGOXQJ

123. )RU H[DPSOH KH UHODWHV WKH GHSRUWDWLRQ RI
*HUPDQ -HZV WR 5LJD DQG 0LQVN S '(- S

124. *HUPDQ¶V ZRUVHQ
LQJ FLUFXPVWDQFHV LQ WKH ZDU PDGH WKH FRQWLQXDQFH RI WKLV SROLF LPSRVVL
EOH ,I WKH DXWKRULWLHV KDG ZDQWHG WR NLOO WKHVH *HUPDQ -HZV WKHUH FRXOG
KDYH EHHQ QR JRRG UHDVRQ WR KDXO WKHP RII WR /DWYLD DQG :KLWH 5XVVLD LQ WKH
DOZDV XUJHQWO QHHGHG WUDLQV LQVWHDG RI NLOOLQJ WKHP LQ *HUPDQ LWVHOI RU
VHQGLQJ WKHP WR RQH RI WKH µH[WHUPLQDWLRQ FDPSV¶ HYHQ WKHQ 1RYHPEHU

125. VXSSRVHGO EHLQJ EXLOW LQ 3RODQG
,W KDUGO QHHGV WR EH PHQWLRQHG WKDW IRU +LOEHUJ WKH WHUP ³ILQDO VROX
WLRQ´ (QGO|VXQJ

126. VWDQGV DV D VQRQP IRU µH[WHUPLQDWLRQ¶ $XVURWWXQJ

127. )RU H[DPSOH WKLV LV WKH VHQVH LQ ZKLFK KH LQWHUSUHWV *|ULQJ¶V ZHOONQRZQ
OHWWHU WR +HGULFK RQ VW -XO IUHTXHQWO TXRWHG LQ WKH OLWHUDWXUH RQ
WKH VXEMHFW LQ ZKLFK WKH IRUPHU RUGHUV WKH ODWWHU WR VXEPLW ³LQ WKH QHDU
IXWXUH DQ RYHUDOO SODQ RI WKH RUJDQL]DWLRQDO IXQFWLRQDO DQG PDWHULDO PHD
VXUHV WR EH WDNHQ LQ SUHSDULQJ IRU WKH LPSOHPHQWDWLRQ RI WKH DVSLUHG ILQDO
VROXWLRQ RI WKH -HZLVK TXHVWLRQ´
+LOEHUJ DGGV +HGULFK QRZ KHOG ³WKH
UHLQV RI WKH GHVWUXFWLRQ SURFHVV LQ KLV KDQGV´ S '(- S

128. *|ULQJ¶V H[SUHVVLRQ WKDW +HGULFK VKRXOG ³XQGHUWDNH E HPLJUDWLRQ RU
HYDFXDWLRQ D VROXWLRQ RI WKH -HZLVK TXHVWLRQ DV DGYDQWDJHRXV DV SRVVLEOH
XQGHU WKH FRQGLWLRQV DW WKH WLPH´ +LOEHUJ LQWHUSUHWV WKH VDPH ZD DV KLV
SUHGHFHVVRUV IURP 3ROLDNRY WR 5HLWOLQJHU DV FRGH ODQJXDJH IRU SKVLFDO
DQQLKLODWLRQ 1R VHULRXV KLVWRULDQ ZKR ZURWH RQ DQ HUD RWKHU WKDQ WKH 7KLUG
5HLFK DQG WKH 6HFRQG :RUOG :DU ZRXOG EH SHUPLWWHG WR GLVWRUW WKH VWDWH
PHQWV RI KLV RULJLQDO VRXUFHV VR FDSULFLRXVO
7KDW WKH 1DWLRQDO 6RFLDOLVWV WRRN ³ILQDO VROXWLRQ RI WKH -HZLVK TXHV
WLRQ´ (QGO|VXQJ GHU -XGHQIUDJH

129. WR PHDQ WKH H[SXOVLRQ $XVZHLVXQJ

130. RU
UHPRYDO $EVFKLHEXQJ

131. RI DOO -HZV IURP (XURSH FDQ EH VKRZQ E D QXPEHU
RI GRFXPHQWV )RU H[DPSOH )UDQ] 5DGHPDFKHU RIILFLDO LQ FKDUJH RI -HZLVK
DIIDLUV LQ WKH *HUPDQ 6HFWLRQ RI WKH )RUHLJQ 2IILFH RQ WK )HEUXDU
DQG WKXV DW D WLPH ZKHQ DFFRUGLQJ WR +LOEHUJ WKH PDVV PXUGHU ZDV DOOHJHGO
LQ IXOO VZLQJ DQG %HåìHF IROORZLQJ KHåPQR ZDV FORVH WR RSHQLQJ DV WKH
VHFRQG H[WHUPLQDWLRQ FDPS ZURWH D OHWWHU WR D +HUU %LHOIHOG RI WKH )RUHLJQ
0LQLVWU LQ ZKLFK KH VWDWHG WKDW WKH )KUHU KDG GHFLGHG WKDW ³WKH -HZV
VKRXOG EH UHPRYHG QRW WR 0DGDJDVFDU EXW WR WKH (DVW´ DQG DGGHG ³0DGD
JDVFDU ZLOO QR ORQJHU EH QHHGHG IRU WKH ILQDO VROXWLRQ´
1RW HYHQ WKH *LDQW
5DXO +LOEHUJ KDV GDUHG WR FODLP WKDW WKH *HUPDQV SODQQHG WR JDV WKH -HZV LQ
36
1*

132. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
WKH MXQJOHV RI 0DGDJDVFDU $QG ZK GRHV +LOEHUJ RPLW VXFK PDMRU SLHFHV
RI GRFXPHQWDU HYLGHQFH
G+LWOHU 4XRWDWLRQ DV µ3URRI¶ IRU WKH 0DVV 0XUGHU
$V GR RWKHU SURSRQHQWV RI WKH RUWKRGR[ SLFWXUH RI WKH µ+RORFDXVW¶
+LOEHUJ LQWHUSUHWV VWDWHPHQWV E $GROI +LWOHU LQ ZKLFK KH WKUHDWHQV WKH -HZV
ZLWK ³DQQLKLODWLRQ´ 9HUQLFKWXQJ

133. RU ³H[WHUPLQDWLRQ´ $XVURWWXQJ

134. DV SURRI
WKDW VXFK D WKLQJ UHDOO KDSSHQHG +H TXRWHV RQ S '(- S

135. D +LW
OHU VSHHFK RI WK 6HSWHPEHU LQ ZKLFK WKH 5HLFKVFKDQFHOORU VWDWHG DV
IROORZV
³,Q P 5HLFKVWDJ VSHHFK RI 6HSWHPEHU , KDYH VSRNHQ RI WZR
WKLQJV ILUVW WKDW QRZ WKDW WKH ZDU KDV EHHQ IRUFHG XSRQ XV QR DUUD RI
ZHDSRQV DQG QR SDVVDJH RI WLPH ZLOO EULQJ XV WR GHIHDW DQG VHFRQG WKDW LI
-HZU VKRXOG SORW DQRWKHU ZRUOG ZDU WR H[WHUPLQDWH ]XU $XVURWWXQJ@ WKH
$UDQ SHRSOHV RI (XURSH LW ZRXOG QRW EH WKH $UDQ SHRSOHV ZKLFK ZRXOG EH
H[WHUPLQDWHG DXVJHURWWHW@ EXW -HZU «@ $W RQH WLPH WKH -HZV RI *HU
PDQ ODXJKHG DERXW P SURSKHFLHV , GR QRW NQRZ ZKHWKHU WKH DUH VWLOO
ODXJKLQJ RU ZKHWKHU WKH KDYH DOUHDG ORVW DOO GHVLUH WR ODXJK %XW ULJKW QRZ
, FDQ RQO UHSHDW WKH ZLOO VWRS ODXJKLQJ HYHUZKHUH DQG , VKDOO EH ULJKW
DOVR LQ WKDW SURSKHF´
,W QHHGV WR EH QRWHG WKDW D ZDUOLNH ZD RI VSHDNLQJ ZDV FKDUDFWHULVWLF
RI WKH 1DWLRQDO 6RFLDOLVWV ZKR EHIRUH FRPLQJ WR SRZHU KDG WR SUHYDLO
DJDLQVW WKHLU DGYHUVDULHV RQ WKH H[WUHPH OHIW LQ FRXQWOHVV FODVKHV LQ PHHWLQJ
URRPV DQG VWUHHWV ,W VKRXOG DOVR EH UHPHPEHUHG WKDW ZLOG WKUHDWV DJDLQVW DQ
HQHP LQ ZDUWLPH DUH FRPPRQ %XW WKH LPSRUWDQW SRLQW LV D VHPDQWLF RQH
,Q SUHVHQW XVDJH DXVURWWHQ PHDQV RQO µWR SKVLFDOO OLTXLGDWH¶ EXW IRU
PHUO WKH ZRUG²ZKRVH HWPRORJ LV µXSURRW¶²KDG D EURDGHU PHDQLQJ
7KXV LQ 0HLQ .DPSI $GROI +LWOHU ZURWH WKH IROORZLQJ RQ FRQGLWLRQV LQ WKH
'DQXEH 0RQDUFK EHIRUH WKH )LUVW :RUOG :DU
³,PPHQVH ZHUH WKH EXUGHQV ZKLFK WKH *HUPDQ SHRSOH ZHUH H[SHFWHG
WR EHDU LQFRQFHLYDEOH WKHLU VDFULILFHV LQ WD[HV DQG EORRG DQG HW DQRQH
ZKR ZDV QRW WRWDOO EOLQG ZDV ERXQG WR UHFRJQL]H WKDW DOO WKLV ZRXOG EH LQ
YDLQ :KDW SDLQHG XV PRVW ZDV WKH IDFW WKDW WKLV HQWLUH VVWHP ZDV PRUDOO
ZKLWHZDVKHG E WKH DOOLDQFH ZLWK *HUPDQ ZLWK WKH UHVXOW WKDW WKH VORZ
H[WHUPLQDWLRQ $XVURWWXQJ@ RI *HUPDQGRP LQ WKH ROG PRQDUFK ZDV LQ D
FHUWDLQ VHQVH VDQFWLRQHG E *HUPDQ LWVHOI´
1RZ +LWOHU FHUWDLQO GLG QRW PHDQ WR VD WKDW ROG .DLVHU )UDQ] -RVHI
SODQQHG WR JDV RU VKRRW DOO WKH *HUPDQ $XVWULDQV EXW UDWKHU WKDW WKH UDQ WKH
9|ONLVFKHU %HREDFKWHU WK 6HSWHPEHU
$GROI +LWOHU 0HLQ .DPSI )UDQ] (KHU 9HUODJ 0XQLFK SS I

136. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
GDQJHU RI ORVLQJ WKHLU SRZHU WR WKH 6ODYV $XVURWWHQ FOHDUO SRVVHVVHG WKH
PHDQLQJ µGHSULYH RI SRZHU URE RI LQIOXHQFH¶
7KH UHDGHU VKRXOG DOVR UHPHPEHU WKDW RQ VW 6HSWHPEHU +LWOHU
FULWLFL]HG WKH -HZV IRU ZDQWLQJ WR OHW ORRVH D ZRUOG ZDU IRU WKH ³HOLPLQDWLRQ
RI WKH $UDQ SHRSOHV´ $XVURWWXQJ GHU DULVFKHQ 9|ONHU

137. ,W FDQQRW EH VHUL
RXVO FRQWHQGHG WKDW KH PHDQW WR VD WKH -HZV LQWHQGHG WKH HUDGLFDWLRQ RI
WKH HQWLUH SRSXODWLRQ RI (XURSH URRW DQG EUDQFK +HUH DJDLQ ³$XVURWWXQJ´
PHDQV µVXEMHFWLRQ¶ RU µGHSULYDWLRQ RI SRZHU¶ 7KLV PHDQLQJ DSSOLHV WR DOO
VXFK HQGOHVVO GLVWRUWHG +LWOHU TXRWDWLRQV LQ WKH µ+RORFDXVW¶ OLWHUDWXUH
H 7ZR ,QVROXEOH 3UREOHPV
$V GR DOO RWKHU UDGLFDO RU PRGHUDWH ,QWHQWLRQDOLVWV +LOEHUJ IDFHV WZR
LQVXSHUDEOH SUREOHPV ZKLFK KH VLPSO LJQRUHV
,I WKH 1DWLRQDO 6RFLDOLVWV KDG GHFLGHG DW DQ WLPH RQ WKH SKVLFDO
OLTXLGDWLRQ RI -HZV SUHVHQW LQ WKHLU DUHD RI FRQWURO IURP WKDW WLPH IRUZDUG
WKHUH ZRXOG EH QR GRFXPHQWV ZKLFK VSRNH RI GHSORPHQW RI -HZLVK ODERU
+RZHYHU VXFK GRFXPHQWV H[LVW LQ ODUJH QXPEHUV :H ZLOO TXRWH IURP D IHZ
RI WKHP ODWHU LQ GLVFXVVLQJ WKH GHSRUWDWLRQV
7KH IROORZLQJ SUREOHP LV
HYHQ PRUH LQVROXEOH IRU WKH ,QWHQWLRQDOLVWV
,I WKHUH KDG EHHQ D VVWHPDWLF SROLF RI DQQLKLODWLRQ RI WKH -HZV
WKHUH ZRXOG KDYH EHHQ HIIHFWLYHO QR -HZV OHIW LQ WKH WHUULWRULHV LQ WKH FRQ
WURO RI WKH 7KLUG 5HLFK (YHU -HZ WKH *HUPDQV FRXOG KDYH JRWWHQ WKHLU
KDQGV RQ ZRXOG KDYH EHHQ NLOOHG DQG WKH IHZ VXUYLYRUV ZRXOG KDYH KDG WR
DVFULEH WKHLU VXUYLYDO WR µFKDQFH¶ RU µPLUDFOH¶ ,Q UHDOLW WKH PDMRULW RI WKH
-HZLVK SRSXODWLRQ LQ WKH FRXQWULHV RFFXSLHG E WKH 7KLUG 5HLFK DYRLGHG DQ
GHSRUWDWLRQ ,W LV ZHOONQRZQ WKDW IURP )UDQFH RQO VOLJKWO PRUH WKDQ
RI WKH -HZV ZHUH GHSRUWHG PRVW RI ZKRP ZHUH IRUHLJQHUV DQG ODFNHG
SURSHU LGHQWLILFDWLRQ -HZV ZLWK )UHQFK SDVVSRUWV ZHUH PRVWO OHIW DORQH
7KH VDPH DSSOLHV WR WKRVH ZLWK %HOJLDQ SDVVSRUWV 8QGHU DQ H[WHUPLQDWLRQ
SROLF WKHUH ZRXOG KDYH EHHQ HIIHFWLYHO QRQH ZKR UHWXUQHG DQG ZH ZRXOG
QRW KDYH RQ KDQG WKH XQFRXQWHG µWHVWLPRQLHV RI +RORFDXVW VXUYLYRUV¶ WKDW
QRZ ILOO ZKROH OLEUDULHV
I FKDSWHU 9,
$FFRUGLQJ WR ,VUDHOL VRXUFHV WKHUH ZHUH VRPH µ+RORFDXVW VXUYLYRUV¶ VWLOO DOLYH LQ
ZKLFK HTXDOV VRPH PLOOLRQ µVXUYLYRUV¶ LQ I *HUPDU 5XGROI ³+RORFDXVW 9LFWLPV $
6WDWLVWLFDO $QDOVLV : %HQ] DQG : 1 6DQQLQJ²D RPSDULVRQ´ LQ ( *DXVV HG

138. 'LVVHFWLQJ WKH
+RORFDXVW 7KHVHV 'LVVHUWDWLRQV 3UHVV DSVKDZ $/ S II RQOLQH KWWSFRGRKFRP
IRXQGIQGVWDWVKWPO

140. ,9 7+( /$. 2) '280(176 $1' ,76 216(48(1(6
I ³$Q ,QFUHGLEOH 0HHWLQJ RI 0LQGV´
,Q )HEUXDU 5DXO +LOEHUJ KDG WKH HIIURQWHU WR ZULWH
³«@ ZKDW EHJDQ LQ ZDV D SURFHVV RI GHVWUXFWLRQ QRW SODQQHG
LQ DGYDQFH QRW RUJDQL]HG FHQWUDOO E DQ DJHQF 7KHUH ZDV QR EOXHSULQW
DQG WKHUH ZDV QR EXGJHW IRU GHVWUXFWLYH PHDVXUHV 7KH ZHUH WDNHQ VWHS E
VWHS RQH VWHS DW D WLPH 7KXV FDPH QRW VR PXFK D SODQ EHLQJ FDUULHG RXW EXW
DQ LQFUHGLEOH PHHWLQJ RI PLQGV D FRQVHQVXVPLQG UHDGLQJ E D IDUIOXQJ
EXUHDXFUDF´
5REHUW )DXULVVRQ SRLQWHG RXW WKHVH SHDUOV RI +LOEHUJLDQ LQWHUSUHWLYH
DUW DQG VDUFDVWLFDOO FRPPHQWHG WKDW LQ KLV RZQ H[SHULHQFH WKH ODVW WKLQJ
RQH FRXOG HYHU H[SHFW IURP D EXUHDXFUDF ZDV D PHHWLQJ RI PLQGV DQG
WHOHSDWK
'LIILFLOLV HVW VDWLUDP QRQ VFULEHUH²LW LV GLIILFXOW QRW WR ZULWH VDWLUH ,W
ZRXOG EH GLIILFXOW WR ILQG DQ FOHDUHU GLVSOD DQZKHUH WKDQ WKHVH IHZ VHQ
WHQFHV RI WKH WRWDO EDQNUXSWF RI WKH RUWKRGR[ KLVWRULRJUDSK RI WKH µ+ROR
FDXVW¶ WRJHWKHU ZLWK WKHLU ILJXUHKHDG WKH *LDQW ZLWK IHHW RI FOD
1HZVGD /RQJ ,VODQG1HZ RUN UG )HEUXDU S ,,
5REHUW )DXULVVRQ eFULWV UpYLVLRQQLVWHV RS FLW QRWH

141. S

142. 9 7KH 0DVVDFUHV %HKLQG WKH (DVWHUQ )URQW
7KH ,QLWLDO 6LWXDWLRQ
2Q QG -XQH WKH :HKUPDFKW PDUFKHG LQWR WKH 8665 7KH
RIILFLDO YHUVLRQ RI KLVWRU KDV LW WKDW WKLV ZDV DQ XQSURYRNHG DWWDFN 2Q WKH
RWKHU KDQG 5HYLVLRQLVWV VXFK DV WKH 5XVVLDQ KLVWRULDQ 6XYRURY DQG WKH *HU
PDQ KLVWRULDQ +RIIPDQQ PDLQWDLQ WKDW E GRLQJ VR +LWOHU ZDV DEOH WR IRUH
VWDOO DQ LPSHQGLQJ 6RYLHW DWWDFN
,Q WKH WHUULWRULHV WDNHQ E WKH *HUPDQV 6RYLHW SDUWLVDQV VWLUUHG XS D
EORRG XQGHUJURXQG ZDU ZKLFK WRRN WKH OLYHV RI PDQ *HUPDQ VROGLHUV
7KH 6RYLHWV ERDVWHG WKDW WKHLU SDUWLVDQV KDG NLOOHG PHPEHUV RI WKH
*HUPDQ DUP
7KH *HUPDQV UHDFWHG WR WKHVH DFWLRQV²ZKLFK YLRODWHG
LQWHUQDWLRQDO ODZ²WKH ZD RWKHU RFFXSLQJ SRZHUV EHIRUH DQG VLQFH KDYH
GRQH ZLWK VHYHUH UHSULVDO PHDVXUHV HYHQ DJDLQVW WKH FLYLOLDQ SRSXODWLRQ
0DQ FLYLOLDQV ZHUH VKRW DV KRVWDJHV ZKROH YLOODJHV ZHUH EXUQHG WR WKH
JURXQG
9LFWRU 6XYRURY ,FHEUHDNHU :KR 6WDUWHG WKH 6HFRQG :RUOG :DU +DPLVK +DPLOWRQ /RQGRQ
9 6XZRURZ 'HU 7DJ 0 .OHWWRWWD 6WXWWJDUW 9 6XZRURZ 6WDOLQV YHUKLQGHUWHU (UVWVFKODJ
3RXU OH 0HULWH 6HOHQWH ( 7RSLWVFK 6WDOLQ¶V :DU )RXUWK (VWDWH /RQGRQ : 3RVW
8QWHUQHKPHQ %DUEDURVVD 0LWWOHU +DPEXUJ ) %HFNHU 6WDOLQV %OXWVSXU GXUFK (XURSD $UQGW
9HUODJ .LHO ) %HFNHU ,P .DPSI XP (XURSD /HRSROG 6WRFNHU 9HUODJ *UD]6WXWWJDUW
: 0DVHU 'HU :RUWEUXFK +LWOHU 6WDOLQ XQG GHU =ZHLWH :HOWNULHJ 2O]RJ 9HUODJ 0XQLFK -
+RIIPDQQ 6WDOLQ¶V :DU RI ([WHUPLQDWLRQ 7KHVHV 'LVVHUWDWLRQV 3UHVV DSVKDZ $/ -
+RIIPDQQ ³'LH 6RZMHWXQLRQ ELV ]XP 9RUDEHQG GHV GHXWVFKHQ $QJULIIV´ LQ +RUVW %RRJ DQG RWKHUV
'DV 'HXWVFKH 5HLFK XQG GHU =ZHLWH :HOWNULHJ YRO 'HU $QJULII DXI GLH 6RZMHWXQLRQ 'HXWVFKH
9HUODJV$QVWDOW 6WXWWJDUW - +RIIPDQQ ³7KH 6RYLHW 8QLRQ¶V 2IIHQVLYH 3UHSDUDWLRQV LQ ´
LQ )URP 3HDFH WR :DU 3URYLGHQFH2[IRUG SS
%RULV 6 7HOSXFKRZVNL 'LH VRZMHWLVFKH *HVFKLFKWH GHV *UR‰HQ 9DWHUOlQGLVFKHQ .ULHJHV
)UDQNIXUW D 0 UHTXRWHG IURP :DOWHU 6DQQLQJ 7KH 'LVVROXWLRQ RI WKH (DVWHUQ
(XURSHDQ -HZU ,QVWLWXWH IRU +LVWRULFDO 5HYLHZ 1HZSRUW %HDFK $ S RQOLQH
*HUPDQ

143. KWWSYKRRUJ'GD

144. FI *HUPDU 5XGROI DQG 6LEOOH 6FKU|GHU ³3DUWLVDQHQNULHJ XQG
5HSUHVVDOW|WXQJHQ´ 9LHUWHOMDKUHVKHIWH IU IUHLH *HVFKLFKWVIRUVFKXQJ KHUHDIWHU 9II*

145. SS RQOLQH KWWSYKRRUJ9II* 5XGROI6FKURHGHUKWPO

146. 2Q WKH TXHVWLRQ RI WKH OHJDOLW RI VXFK UHSULVDOV FI .DUO 6LHJHUW ³5HSULVDOV DQG 2UGHUV )URP
+LJKHU 8S´ ( *DXVV HG

147. RS FLW QRWH

148. SS RQOLQH KWWSFRGRKFRPIRXQG
IQG6LHJHUWKWPO

149. DQG DOVR ): 6HLGOHU 'LH :HKUPDFKW LP 3DUWLVDQHQNULHJ 3RXU OH 0pULWH 6HOHQW
%RJGDQ 0XVLDO .RQWHUUHYROXWLRQlUH (OHPHQWH VLQG ]X HUVFKLH‰HQ 3URSOlHQ %HUOLQ

150. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
%HFDXVH IURP WKH YHU EHJLQQLQJ -HZV LQ WKH 6RYLHW 8QLRQ KDG
SODHG DQ LQRUGLQDWHO ODUJH UROH LQ WKH PDNLQJ RI WKH RPPXQLVW VVWHP
DQG DOVR PDGH XS D GLVSURSRUWLRQDWHO ODUJH VKDUH RI WKH SDUWLVDQV
-HZLVK
FLYLOLDQV VXIIHUHG LQ WKH *HUPDQ UHSUHVVLRQ PHDVXUHV WR D PXFK JUHDWHU
GHJUHH WKDQ QRQ-HZLVK FLYLOLDQV 7KDW WKHUH ZHUH HYHQ µZLOG¶ VKRRWLQJV
ZKLFK LV WR VD VKRRWLQJV WKDW ZHUH GRQH QRW DV D UHDFWLRQ WR DWWDFNV E SDU
WLVDQV FDQ KDUGO EH H[FOXGHG ,W LV DOVR QRW GLVSXWHG WKDW PDQ -HZLVK
RPPXQLVW FRPPLVVDUV ZHUH NLOOHG EHFDXVH RI +LWOHU¶V ³RPPLVVDU
2UGHU´ ZKLFK ZDV RQO UHOXFWDQWO DSSOLHG E *HUPDQ RIILFHUV LQ WKH (DVW
DQG ZKLFK ZDV DEURJDWHG LQ HDUO ,Q DGGLWLRQ WKRXVDQGV RI -HZV ZHUH
NLOOHG LQ SRJURPV LQLWLDWHG E WKH QDWLYH SRSXODWLRQV IROORZLQJ WKH *HUPDQ
LQYDVLRQ $IWHU WKH KDG EHHQ IUHHG IURP WKH %ROVKHYLVW RNH /DWYLDQV
/LWKXDQLDQV 8NUDLQLDQV DQG RWKHUV WRRN UHYHQJH RQ -HZV EHFDXVH WKH 5HG
WHUURU PDFKLQHU KDG EHHQ OHG PDLQO E -HZV DQG WKLV UHWULEXWLRQ XQIRUWX
QDWHO IHOO DOVR RQ -HZV ZKR KDG QRWKLQJ WR GR ZLWK WKH RPPXQLVW
FULPHV
7KH RUWKRGR[ KLVWRULDQV DUH WHOOLQJ XV WKDW WKH *HUPDQV FDUULHG RXW DQ
DFWXDO ZDU RI H[WHUPLQDWLRQ DJDLQVW WKH -HZV 7KH PRVW H[WHQVLYH SUHVHQWD
WLRQ RI WKLV WKHVLV ZDV WKH ERRN SXEOLVKHG LQ E +HOPXW .UDXVQLFN DQG
+DQV+HLQULFK :LOKHOP 'LH 7UXSSH GHV :HOWDQVFKDXXQJVNULHJHV
ZKLFK
ZH FDQQRW H[DPLQH IXUWKHU LQ D ZRUN GHGLFDWHG VROHO WR WKH GLVFXVVLRQ RI
+LOEHUJ WKDW ZLOO KDYH WR ZDLW XQWLO D ODWHU GDWH ,Q ZKDW IROORZV ZH ZLOO FULW
LFDOO H[DPLQH WKH DUJXPHQWV 5DXO +LOEHUJ KDV PDGH LQ VXSSRUW RI WKLV WKH
VLV )LUVW KRZHYHU ZH QHHG WR VXPPDUL]H ZKDW +LOEHUJ VDV KDSSHQHG WR
6RYLHW -HZV LQ WKH *HUPDQRFFXSLHG WHUULWRULHV
+LOEHUJ¶V 9HUVLRQ RI *HUPDQ -HZLVK 3ROLF
LQ WKH 2FFXSLHG 6RYLHW 7HUULWRULHV
5DXO +LOEHUJ VWDWHV WKDW WKH PDVV PXUGHUV RI 6RYLHW -HZV EHJDQ LQ
$XJXVW KH ZULWHV
³$W ILUVW WKH .RPPDQGRV XQGHUWRRN QR PDVV VKRRWLQJV QRU PDGH YLF
WLPV RI ZKROH IDPLOLHV 7KH KDG QRW HW EHFRPH KDELWXDWHG WR URXWLQH NLOO
2I OHDGLQJ SHUVRQDOLWLHV LQ WKH 6RYLHW 8QLRQ LQ ZHUH -HZV FI -XUL . %HJXQRY
7DMQH 6LO Z LVWRULL 5RVVLM ,VGDWHOVWYR ,PHQL $6 6ERULQD 6W 3HWHUVEXUJ
'LH (Q]NORSlGLH GHV +RORFDXVW HG E (EHUKDUG -lFNHO 3HWHU /RQJHULFK DQG -XOLXV + 6FKRHSV
$UJRQ 9HUODJ %HUOLQ

151. FRQWDLQV WKLV FRPPHQW ³7KH SDUWLVDQ JURXSV LQ WKH 8665@ RIWHQ
IRUPHG VSRQWDQHRXVO 0DQ XQLWV FRQVLVWHG ODUJHO RI -HZLVK ILJKWHUV´ S

152. $OO VL[ PDLQ DUFKLWHFWV RI WKH RPPXQLVW VODYH FDPS VVWHP ZHUH -HZV $OH[DQGHU 6ROVFKHQL]Q
'HU $UFKLSHO *XODJ 6FKHU] 9HUODJ %HUQ SKRWRJUDSKLF VHFWLRQ

153. 6WXWWJDUW

154. 9 7+( 0$66$5(6 %(+,1' 7+( ($67(51 )5217
LQJ %HFDXVH RI WKH LQIOXHQFH RI FHQWXULHVROG WUDGLWLRQV WKH GLG QRW
FRQVLGHU WKHLU RUGHUV DV DOOHQFRPSDVVLQJ 7KH WRRN WKH ZRUG µ-HZ¶ WR
PHDQ PHQ RQO 7KH PDVV NLOOLQJV VWDUWHG RQO LQ $XJXVW ´ S
'(- QD

155. 7KH ³.RPPDQGRV´ EHORQJHG WR WKH IRXU (LQVDW]JUXSSHQ ZKLFK KDG
EHHQ IRUPHG EHIRUH WKH ZDU DQG ZHUH LQWHQGHG WR VHFXUH *HUPDQ UHDU DUHDV
PHDQLQJ WKH ZHUH WR ILJKW SDUWLVDQV RSHUDWLQJ EHKLQG WKH OLQHV $FFRUGLQJ
WR +LOEHUJ WKH KDG WZR IXUWKHU UHVSRQVLELOLWLHV 5HIHUULQJ WR DQ DIILGDYLW
PDGH DIWHU WKH ZDU E 2WWR 2KOHQGRUI OHDGHU RI (LQVDW]JUXSSH '
KH
ZULWHV
³$FFRUGLQJ WR 2KOHQGRUI WKH FRPPDQGHUV RI WKH (LQVDW]JUXSSHQ
ZHUH EULHIHG E +LPPOHU SHUVRQDOO 7KH ZHUH LQIRUPHG WKDW DQ LPSRUWDQW
SDUW RI WKHLU WDVN ZDV WKH HOLPLQDWLRQ %HVHLWLJXQJ

156. RI -HZV²ZRPHQ PHQ
DQG FKLOGUHQ²DQG RI RPPXQLVW IXQFWLRQDULHV
´ S '(- S

157. $OVR +LOEHUJ VDV WKH (LQVDW]JUXSSHQ ZHUH WR FRPE WKH 32:
FDPSV IRU SHUVRQV WKH VKRXOG VKRRW +HGULFK KDG RUGHUHG WKH VRUWLQJ RXW
RI DOO ³SURIHVVLRQDO UHYROXWLRQDULHV´ 5HG $UP SROLWLFDO RIILFHUV ³IDQDWLFDO
RPPXQLVWV´ DQG ³DOO -HZV´ DQG WKH (LQVDW]JUXSSHQ GLG WKH PDMRU SDUW RI
WKLV ZRUN S '(- S

158. 7KH IRXU (LQVDW]JUXSSHQ QXPEHUHG PHQ DOWRJHWKHU LQFOXGLQJ D
IHZ QRQFRPEDWDQWV VXFK DV LQWHUSUHWHUV DQG UDGLR RSHUDWRUV SS I '(-
S

159. 7KH ILUVW ³NLOOLQJ VZHHS´ ZKLFK EHJDQ LQ $XJXVW ODVWHG XQWLO
'HFHPEHU RI WKH VDPH HDU EXW EHIRUH LW ZDV RYHU D VHFRQG NLOOLQJ VZHHS
KDG DOUHDG EHJXQ²LQ WKH IDOO² ZKRVH SXUSRVH ZDV WKH VHL]XUH DQG OLTXL
GDWLRQ RI -HZV ZKR KDG EHHQ RYHUORRNHG
,Q DGGLWLRQ WR WKH (LQVDW]JUXSSHQ *HVWDSR PHPEHUV IURP 7LOVLW (LQ
VDW]NRPPDQGRV IURP WKH *HQHUDOJRXYHUQHPHQW DQG LPSURYLVHG .RPPDQ
GRV RI WKH +LJKHU 66 DQG 3ROLFH /HDGHUV FRRSHUDWHG LQ WKH VHFRQG NLOOLQJ
VZHHS S '(- S

160. 7KH PDVV VKRRWLQJV IROORZHG WKH VDPH SDWWHUQ DSDUW IURP PLQRU YDUL
DWLRQV -HZV ZRXOG EH WDNHQ IURP WKH FLWLHV ZKHUH PRVW RI WKHP OLYHG WR SLWV
OLQJ RQ WKH RXWVNLUWV RI WKH FLWLHV²VRPH RI ZKLFK DOUHDG H[LVWHG WKH UHVW
RI ZKLFK ZHUH GXJ IRU WKH SXUSRVH²DQG PXUGHUHG WKHUH )UHTXHQWO WKHUH
ZHUH ILYH RU VL[ ODHUV RI ERGLHV LQ WKH SLWV EHIRUH WKH ZHUH FRYHUHG RYHU
ZLWK HDUWK SS I '(- S I

161. %HFDXVH WKH VKRRWLQJV RIWHQ FDXVHG VWUHVVIXO PLVJLYLQJV IRU WKH
VKRRWHUV +LOEHUJ WHOOV XV WKH *HUPDQV LQVWLWXWHG WKH XVH RI JDV YDQV DV
36

162. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
DQRWKHU LQVWUXPHQW RI PXUGHU VWDUWLQJ LQ 'HFHPEHU ZKHQ HDFK (LQ
VDW]JUXSSH ZDV DOORWWHG WZR RU WKUHH RI WKHP -HZV ZHUH NLOOHG LQ WKH JDV
YDQV ZLWK H[KDXVW JDV IHG LQVLGH SS I '(- QD

163. +HUH DUH WKH YLFWLP FRXQWV +LOEHUJ JLYHV IRU VHYHUDO FLWLHV
± YLFWLPV LQ .LHY
± YLFWLPV LQ 5LJD WKLV (LQVDW]NRPPDQGR QXPEHUHG RQO
PHQ

164. ± YLFWLPV LQ .DPHQHWV3RGROVN
± YLFWLPV LQ 'QHSURSHWURYVN S '(- S

165. ± YLFWLPV LQ 5RYQR S '(- S

166. ± YLFWLPV LQ 6LPIHURSRO S '(- S

167. +LOEHUJ FKDUJHV ODUJHVFDOH PDVVDFUHV RI -HZV QRW RQO WR WKH *HU
PDQV EXW DOVR WR WKH 5XPDQLDQV ZKR KH FODLPV VODXJKWHUHG -HZV LQ
D VLQJOH GD UG 2FWREHU S '(- S

168. $OWKRXJK WKH VHFRQG NLOOLQJ VZHHS DOOHJHGO JRW XQGHU ZD D IXOO
WKUHH PRQWKV EHIRUH WKH ILUVW KDG HQGHG +LOEHUJ VDV WKDW WKHUH ZDV DQ
³LQWHUPHGLDU VWDJH´ WKDW RI JKHWWRL]DWLRQ ,WV SXUSRVHV ZHUH WZRIROG
5HIHUULQJ WR D VXSSRVHG

169. UHSRUW RI (LQVDW]JUXSSH KH ZULWHV
³$OO (LQVDW]JUXSSHQ FRPPDQGHUV ZLWK WKH SRVVLEOH H[FHSWLRQ RI WKH
UHOHQWOHVV 'U 6WDKOHFNHU WKH OHDGHU RI (LQVDW]JUXSSH $@ UHDOL]HG WKDW WKH
-HZV FRXOG QRW EH NLOOHG LQ D VLQJOH VZHHS ,Q RQH UHSRUW WKHUH LV HYHQ D QRWH
RI GHVSDLU RYHU WKH -HZLVK UHIXJHHV ZKR ZHUH GULIWLQJ EDFN LQWR WKH FLWLHV
IURP ZKLFK WKH KDG IOHG «@ :KHQHYHU WKH (LQVDW]JUXSSH KDG OHIW D WRZQ
LW UHWXUQHG WR ILQG PRUH -HZV WKDQ KDG DOUHDG EHHQ NLOOHG WKHUH
´ S
'(- S

170. 7KH HVVHQFH RI WKH JKHWWRV +LOEHUJ EHOLHYHV ZDV WR
³SUHYHQW WKH GLVSHUVDO RI WKH YLFWLPV DQG WR IDFLOLWDWH WKHLU IXWXUH VHL
]XUH IRU VKRRWLQJV´ S '(- S

171. 7KH VHFRQG SXUSRVH PRWLYDWLQJ JKHWWRL]DWLRQ ZDV WKH HFRQRPLF XWLOL
]DWLRQ RI -HZV
³:KHUHDV WKH PRELOH NLOOLQJ XQLWV ZHUH LQWHUHVWHG RQO LQ FRQFHQWUDW
LQJ WKH -HZV WR IDFLOLWDWH WKH VHFRQG VZHHS WKH PLOLWDU DQG FLYLOLDQ DGPLQ
LVWUDWLRQV GHFLGHG WR H[SORLW WKH VLWXDWLRQ ZKLOH LW ODVWHG +HQFH HFRQRPLF
PHDVXUHV LQ WKH IRUP RI ODERU XWLOL]DWLRQ DQG SURSHUW FRQILVFDWLRQV
EHFDPH DQ LPSRUWDQW DVSHFW RI WKH LQWHUPHGLDU VWDJH´ S '(- S

172. ³7KH DUP QHHGHG -HZLVK ZRUNHUV LQ LWV UHSDLU VKRSV DQG -HZLVK
FOHUNV LQ LWV RIILFHV
7KH DUPDPHQW SODQWV XQGHU µWUXVWHHVKLS¶ FRQWLQXHG WR
EH GHSHQGHQW XSRQ -HZLVK ODERU
,Q WKH 9ROKQLDQ VHFWRU RI WKH *HQHUDONR
PPLVVDULDW 9ROKQLD3RGROLD WKH ODERU IRUFH LQ DUPDPHQW SODQWV ZDV
SHUFHQW -HZLVK WKURXJKRXW DQG
´ S '(- S

174. 9 7+( 0$66$5(6 %(+,1' 7+( ($67(51 )5217
$OWKRXJK WKH JKHWWRL]DWLRQ SROLF DV DQ ³LQWHUPHGLDU VWDJH´
RFFXUUHG EHWZHHQ WKH ILUVW NLOOLQJ VZHHS²FRPSOHWHG E 'HFHPEHU ²
DQG WKH VHFRQG VZHHS EHJLQQLQJ LQ 6HSWHPEHU
³:KHQ WKH FLYLO DGPLQLVWUDWLRQ WRRN RYHU SDUW RI WKH RFFXSLHG WHUUL
WRU LQ -XO DQG $XJXVW RI WKH PRELOH NLOOLQJ XQLWV KDG DOUHDG FRP
SOHWHG D ODUJH SDUW RI WKH JKHWWRL]DWLRQ SURFHVV (LQVDW]JUXSSH $ SULGHG
LWVHOI WKDW XSRQ WUDQVIHU RI MXULVGLFWLRQ LW KDG DOUHDG PDGH SUHSDUDWLRQV
IRU WKH LQFDUFHUDWLRQ LQ JKHWWRV RI DOO -HZLVK FRPPXQLWLHV H[FHSWLQJ RQO
9LOQD

175. ´ S '(- SS I

176. 7KH JKHWWRV RI 5LJD DQG 0LQVN ZHUH DOVR GHVLJQDWHG IRU WKH UHFHSWLRQ
RI GHSRUWHG *HUPDQ -HZV %XW VLQFH WKH DYDLODEOH VSDFH GLG QRW VXIILFH IRU
ERWK WKH ORFDO -HZV DQG WKH *HUPDQ -HZV WRJHWKHU LQ 5LJD EHWZHHQ WKH WK
1RYHPEHU DQG WKH WK 'HFHPEHU WKH 1DWLRQDO 6RFLDOLVWV VKRW
-HZV LQ WZR VZHHSV DIWHU WKH KDG DOUHDG EXWFKHUHG WKHUH HDUOLHU

177. ³6SDFH KDG QRZ EHHQ FUHDWHG IRU WUDQVSRUWV IURP *HUPDQ LQVLGH WKH JKHWWR
LWVHOI´ S '(- S

178. HW WKH *HUPDQ -HZV LQ WKH 5LJD TXDUWHU DQG LQ
WKH QHDUE ZRUN FDPSV ZHUH UHGXFHG WR D KDQGIXO RI VXUYLYRUV LQ WKH
PRQWKV DQG HDUV IROORZLQJ WKHLU GHSRUWDWLRQ DW WKH HQG RI GXH WR WKH
GHSUHGDWLRQV RI XQFKHFNHG HSLGHPLFV S '(- S

179. 7KLV FDXVHG WKH
*HUPDQV PXFK KDUP HFRQRPLFDOO EHFDXVH
³,Q WKH 5LJD UHJLRQ ZKHUH WKH *HUPDQ -HZV ZHUH WR EH µTXDUWHUHG
RQO IRU D WUDQVLWRU VWD QXU YRUEHUJHKHQG KLHU XQWHUJHEUDFKW

180. ¶ DQG
ZKHUH PDQ RI WKH GHSRUWHHV ZHUH µFULSSOHV ZDU LQYDOLGV DQG SHRSOH RYHU
VHYHQW HDUV RI DJH .USSHO .ULHJVLQYDOLGHQ XQG EHU -DKUH DOWH
/HXWH

181. ¶
D ZLGHVSUHDG GHPDQG IRU -HZLVK ODERUHUV EHFDPH PDQLIHVW DOO WKH
VDPH 2Q RQH RFFDVLRQ D *HELHWVNRPPLVVDU HPSORHH FRPSODLQHG WKDW VRO
GLHUV VKRXWLQJ LQ WKH SUHVHQFH RI PRUH WKDQ -HZV KDG VLPSO VHL]HG
WKH ODERU LQ GHILDQFH RI UHJXODWLRQV
% WKH UHPDLQLQJ WKRXVDQGV RI
*HUPDQ DQG /DWYLDQ -HZLVK ODERUHUV ZHUH GLYLGHG DPRQJ D ODUJH QXPEHU RI
HPSORHUV 66 DUP QDY DLU IRUFH UDLOURDGV DQG ILUPV
´ S '(-
SS I

182. )URP WKH WUDQVSRUWV UHDFKLQJ 0LQVN IURP *HUPDQ DQG WKH 3URWHFWRU
DWH RI %RKHPLD DQG 0RUDYLD -HZV ZHUH VKRW RQ WKH WK DQG WK
1RYHPEHU S '(- S

183. $URXQG WKH PLGGOH RI +HLQULFK +LPPOHU GHFLGHG WR OLTXLGDWH
WKH HQWLUH JKHWWR VVWHP WKH JKHWWRV ZRXOG EH FRQYHUWHG LQWR FRQFHQWUDWLRQ
FDPSV 7KLV FRQYHUVLRQ ZDV FRPSOHWHG VPRRWKO LQ /DWYLD EXW LQ /LWKXDQLD
LW ZDV DFFRPSDQLHG E H[WHQVLYH NLOOLQJ RSHUDWLRQV S '(- S

184. +LOEHUJ UHSRUWV
³% $XJXVW DQG 6HSWHPEHU WKH 9LOQD JKHWWR ZDV GLVVROYHG
0RVW RI LWV LQPDWHV ZHUH VHQW WR (VWRQLD DQG /DWYLD ZKHUH WKH ZHUH VXE
MHFWHG WR DWWULWLRQ DQG VKRRWLQJV DQG IURP ZKHUH WKH UHPDLQGHU ZDV VXEVH

185. -h5*(1 *5$) Â 7+( *,$17 :,7+ )((7 2) /$
TXHQWO URXWHG WR WKH 6WXWWKRI FRQFHQWUDWLRQ FDPS 2WKHU WKRXVDQGV ZHUH
WUDQVSRUWHG WR WKH /XEOLQ GHDWK FDPS DQG VWLOO RWKHUV ZHUH URXQGHG XS DQG
VKRW´ S '(- S

186. -HZV LQ WKH 0LQVN JKHWWR ZHUH UHPRYHG WR 3RODQG S '(- S

187. $OO WROG DFFRUGLQJ WR +LOEHUJ PLOOLRQ -HZV SHULVKHG LQ WKH
6RYLHW WHUULWRULHV WDNHQ E WKH *HUPDQV 2I WKHVH PRUH WKDQ WZR WKLUGV ZHUH
PXUGHUHG E WKH (LQVDW]JUXSSHQ WKH UHVW ZHUH NLOOHG E WURRSV RI WKH
+LJKHU 66 DQG 3ROLFH /HDGHUV RI WKH :HKUPDFKW DQG WKH 5XPDQLDQV IHOO LQ
SDUWLVDQ ZDUIDUH RU GLHG GXH WR SULYDWLRQV LQ WKH FDPSV DQG JKHWWRV DQG LQ
WKH RSHQ ILHOGV DQG ZRRGV SS I '(- S

188. $ IXUWKHU PLOOLRQ
6RYLHW -HZV HVFDSHG *HUPDQ UXOH WKURXJK IOLJKW S '(- S

189. 6LQFH RI WKH ILYH PLOOLRQ -HZV OLYLQJ LQ WKH 8665 EHIRUH QG -XQH
IRXU PLOOLRQ ZHUH LQKDELWDQWV RI ]RQHV ZKLFK DW WLPHV FDPH XQGHU *HUPDQ
FRQWURO XQGHU WKHVH FRQGLWLRQV RYHU RQH PLOOLRQ -HZV PXVW KDYH VXUYLYHG LQ
WKH DUHD UXOHG E WKH *HUPDQV SS I '(- S

190. 1RZ WKLV LV +LOEHUJ¶V GHVFULSWLRQ RI ZKDW KDSSHQHG WR WKH -HZV LQ WKH
6RYLHW WHUULWRULHV RYHUUXQ E WKH *HUPDQV %HIRUH ZH WDNH D ORRN DW WKH
VRXUFHV RQ ZKLFK WKH H[DOWHG µ+RORFDXVW¶ KLVWRULDQ IRXQGV KLV DVVHUWLRQV OHW
XV SXUVXH WKH TXHVWLRQ ZKHWKHU WKH SLFWXUH KH GUDZV DSSHDUV EHOLHYDEOH RU
QRW XVLQJ JRRG FRPPRQ VHQVH
2Q WKH /LNHOLKRRG RI +LOEHUJ¶V 'HVFULSWLRQ
$QRQH HQGRZHG ZLWK WKH SRZHU RI ORJLFDO WKRXJKW ZKR DQDO]HV
+LOEHUJ¶V GHVFULSWLRQ RI *HUPDQ -HZLVK SROLF LQ WKH RFFXSLHG 6RYLHW WHUUL
WRULHV DV VXPPDUL]HG DERYH ZLOO LQHVFDSDEO FRPH WR WKH FRQFOXVLRQ WKDW LW
FDQQRW KROG XS DQG FRQVHTXHQWO LW PXVW UHVW RQ XQUHOLDEOH VRXUFHV /HW XV
OLVW VRPH RI WKH PRUH JURVV DEVXUGLWLHV ZKLFK VSULQJ LQWR YLHZ
D 7KH ODLPHG 1XPEHUV RI 9LFWLPV RI WKH (LQVDW]JUXSSHQ
7KH FODLPHG QXPEHUV RI YLFWLPV RI WKH (LQVDW]JUXSSHQ DUH LPSRVVL
EO ODUJH 7KH ODUJHVW RI WKH IRXU (LQVDW]JUXSSH $ KDG PHPEHUV ,I ZH
VXEWUDFW IURP WKLV WKH YHKLFOH GULYHUV ZRPHQ HPSORHHV LQWHU
SUHWHUV WHOHWSHZULWHU RSHUDWRUV DQG UDGLR RSHUDWRUV WKHUH DUH DERXW
FRPEDWDQWV OHIW WR XVH IRU WKH PDVV NLOOLQJV S '(- S

191. 8S WR WK
2FWREHU (LQVDW]JUXSSH $ VXSSRVHGO NLOOHG -HZV S
'(- S

192. RQVLGHULQJ WKH IDFW WKDW WKH PDVV PXUGHUV ILUVW EHJDQ LQ
$XJXVW S '(- QD

193. WKH RYHUZKHOPLQJ PDMRULW RI WKH YLF
WLPV OHW XV VD PXVW KDYH EHHQ NLOOHG LQ D SHULRG RI WHQ ZHHNV

194. 9 7+( 0$66$5(6 %(+,1' 7+( ($67(51 )5217
6LQFH WKH -HZV FHUWDLQO FDQQRW KDYH JRQH WR WKHLU GHDWKV ZLOOLQJO
WKH PXVW KDYH EHHQ WUDFNHG GRZQ DQG GULYHQ WRJHWKHU LQ WKH FLWLHV ZKHUH
WKHUH FHUWDLQO ZRXOG KDYH EHHQ HVFDSH DWWHPSWV DQG UHVLVWDQFH $OVR WKHUH
ZRXOG KDYH EHHQ WKH GLIILFXOW RI PRYLQJ WKH FRQGHPQHG WR WKH RXWVNLUWV RI
WKH FLW ZKHUH PRVW RI WKH SLWV XQGRXEWHGO ZRXOG KDYH KDG WR KDYH EHHQ
QHZO GXJ
%HVLGHV FDUULQJ RXW WKH PDVVDFUHV WKH (LQVDW]JUXSSHQ ZHUH
UHTXLUHG WR FRPE WKH 32: FDPSV IRU FRPPLVVDUV IDQDWLFDO RPPXQLVWV
DQG -HZV 7KLV ZRXOG KDYH EHHQ DQ LPPHQVH WDVN EHFDXVH XS WR WKH HQG RI
QR OHVV WKDQ 5HG $UP PHPEHUV KDG IDOOHQ LQWR *HUPDQ
KDQGV S '(- S

195. (YHQ ZKHQ RQH FRQVLGHUV WKDW RQO D SDUW RI
WKHP KDG EHHQ FDSWXUHG E WKH PLGGOH RI 2FWREHU WKDW WKH (LQVDW]JUXSSHQ
GLG QRW KDYH WR GR DOO WKH ZRUN RQO ³WKH PDMRU SDUW´ RI LW DQG WKDW WKHUH
ZHUH IRXU (LQVDW]JUXSSHQ XQGHU WKHVH FRQGLWLRQV GXULQJ WKH WHQ ZHHNV
IURP WKH EHJLQQLQJ RI $XJXVW XQWLO WKH PLGGOH RI 2FWREHU (LQVDW]JUXSSH $
PXVW KDYH VHDUFKHG WKURXJK KXQGUHGV RI WKRXVDQGV RI 32:V IRU WKH SHUVRQV
WR EH OLTXLGDWHG²LQ DGGLWLRQ WR VKRRWLQJ -HZV DQG ILJKWLQJ SDUWL
VDQV
2QH H[DPSOH LV VXIILFLHQW ,Q YLHZ RI +LOEHUJ¶V VWURQJ WHQGHQF WR
H[DJJHUDWH ZH ZLOO QRW JR LQWR WKH DVWURQRPLFDO QXPEHU RI YLFWLPV +LOEHUJ
DWWULEXWHV WR WKH RWKHU (LQVDW]JUXSSHQ
E7KH 5HIXJHHV 'ULIWLQJ EDFN LQWR WKH LWLHV
,W LV SXUH IOLPIODP WR VD WKDW ³WKH -HZLVK UHIXJHHV «@ ZHUH GULIWLQJ
EDFN LQWR WKH FLWLHV IURP ZKLFK WKH KDG IOHG´ ZKLFK PHDQW WKDW ZKHQHYHU
WKH (LQVDW]JUXSSH KDG OHIW D WRZQ LW UHWXUQHG WR ILQG PRUH -HZV WKDQ KDG
DOUHDG EHHQ NLOOHG WKHUH S '(- S