Canadian Company Press Release
WWS 1999-12-20 (provided courtesy of Canadian Corporate News.)
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World Wide Minerals Ltd.: Open Letter To President Nazarbayev Of
Kazakhstan
WASHINGTON, D.C.--World Wide Minerals Ltd. (TSE: WWS; CDN: WWSS)
announced today that on the occasion of the State visit of
President Nursultan Nazarbayev to Washington, World Wide and
several other victims of the confiscatory policies of the
Kazakhstan Government has published the following open letter to
President Nazarbayev:
Washington, D.C.
Monday, December 20, 1999
Your Excellency:
Welcome to Washington. To begin, let us say that we respect and
admire the progress that you have made since 1991 in leading your
Nation through the period of independence from the Former Soviet
Union. This has been particularly difficult for you in the last
year or so as a result of unfortunate economic conditions
prevailing in your neighbour, Russia.
You also are to be congratulated on convincing the International
Monetary Fund last week to lend Kazakhstan another $453 million in
addition to the hundreds of millions that already have been lent.
However, we believe that there should be better accountability for
these continuing support payments as we, together with other
taxpayers in America and other donor countries, are responsible
for supplying up to $300 billion of the IMF's capital to cover
largesse such as that which has been provided to Kazakhstan.
Kazakhstan is a country rich in natural resources and with a
peace-loving and industrious population. What your people need is
leadership - in fact and by example - to harness those natural
resources. The Companies listed below all have come to your
country in the last few years with great intentions to help you to
develop those natural resources and to aid in the macro- and
micro-economic development of Kazakhstan and its deserving people.
Unfortunately, all of us have come away sorely disappointed at
the treatment we have received from your Government, your
Enterprises and your Institutions.
Collectively, we have invested hundreds of millions of dollars in
reactivating natural resource-based industries. However, we have
seen our operating conditions frustrated and ultimately the fruits
of our efforts and investment of our capital actually or
effectively confiscated by you and your Government. As a result
of this confiscation, not only have our Companies been forced to
leave your country - thus depriving Kazakhstan and its people of
further capital inflows and critically needed economic and
technical development - but the western investment community has
developed a justifiably negative opinion of Kazakhstan resulting
in reduced foreign direct investment.
Kazakhstan is at a cross roads. Only you have the ability to
steer the Ship of State in the right direction. As you are well
aware, not a single significant development - positive or negative
- occurs in Kazakhstan except by your direction or with your
acquiescence. There are currently outstanding scores of foreign
investment disputes in Kazakhstan, with claims aggregating into
the billions of dollars, that are before the Courts, pending
arbitration or just festering. These desperately need to be
addressed - and NOW. You have the unique ability to direct your
Government to resolve these disputes or to cause others within
your influence to resolve them.
Our objective is not to wage war. Rest assured, however, that we
intend to vigorously press on for restitution for the losses
suffered. We are commercial entities whose objective has been to
build our investments in your country into large,
employment-generating, lifestyle sustaining, tax-paying
enterprises. Kazakhstan would gain enormous benefits if it would
just conduct its affairs within the range of normal commercial
standards practised in most other countries participating in the
economic benefits of the booming global economy. Obviously, this
would permit Kazakhstan to generate a significant increase in its
GDP and foreign reserves so that it can speedily repay the IMF
loans and eliminate its dependence on emergency funding for its
economic survival. This is imperative, both for obvious reasons
and because there is a growing sentiment, in this country and
internationally, that the role of the IMF should not be to
continue to support under-performing and under-achieving economies
such as Kazakhstan.
The recently-approved IMF loan is to be advanced to Kazakhstan in
quarterly tranches over three years and is subject to evidence of
compliance with stipulated conditions, into which we have had
input. These include: improved governance; reduction in
corruption; protections that will make the rule of law prevail
over Executive fiat; streamlining of the regulatory and licensing
regime; creation of transparency; a judicial system which,
unlike at present, will not be merely an instrument of your
Government's objectives and will gain some international respect;
and acceleration of a privatization program for State-owned
industries in a fair, equitable and continuous manner and with
full transparency. We will be monitoring your Government's
progress and pressing for a zero tolerance approach to compliance
with the loan terms.
We trust that Messrs. Clinton and Gore, when they meet with you
today, will stress the urgency of eliminating the barriers to
foreign direct investment in Kazakhstan by resolving all of the
existing disputes and eliminating the restrictions and traps that
will create more disputes in the future. Therefore, we trust
that you will heed our message.
In closing, may we wish you a pleasant stay in Washington today
and the best of wishes for the people and economy of Kazakhstan.
Let's start off the new Millennium by resolving all of the
disputes from the last one!
/T/
Yours sincerely,
WORLD WIDE MINERALS LTD. WORLD WIDE MINERALS (USA) INC.
NUCLEAR FUEL RESOURCES CORP. WORLD WIDE FINANCE INC.
TRANS-WORLD METALS GROUP TYKAZ CHROME CORP.
UNITED GLOBAL BANK LTD. GOLD POOL LLP
KAZAKSTAN GOLDFIELDS CORP. CENTRAL ASIA GOLDFIELDS CORP.
KAZURAN CORPORATION UNITED WORLD TRADE, INC.
/T/
World Wide is an international resource company whose businesses
consist of the operation, development, production and marketing of
uranium and uranium products based out of Denver and gold
exploration and development based out of Toronto and Beijing.
World Wide previously operated in Kazakhstan and has lost a cash
investment of over $24 million and a lost business opportunity
valued at $300 million. The other signatories to the letter
include Trans-World Metals, a major London-based international
metals processing and trading company; United World Trade, a
Denver-based oil company; Nuclear Fuel Resources Corporation, a
Denver-based uranium trading affiliate of World Wide; United
Global Bank, a trade finance bank; and Kazakstan Goldfields and
Central Asia Goldfields, gold mining and exploration companies
based in Toronto. Collectively, these companies have invested and
lost well over $1.0 billion on projects in Kazakhstan which
effectively have been confiscated illegally by, or with the
acquiescence of the Government of Kazakhstan.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Thomas B. Evans, Jr.
The Evans Group Ltd.
Washington, D.C.
(202) 333-8777
or
Paul A. Carroll
World Wide Minerals Ltd.
(416) 369-7217
Email: wws@worldwideminerals.com |
