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Gold/Mining/Energy : GMD RESOURCE -- Ignore unavailable to you. Want to Upgrade?

To: Richnorth who wrote (951)	6/24/1999 1:34:00 PM
From: Richnorth	Read Replies (1) \| Respond to of 1030

Monday June 21, 4:16 pm Eastern Time Company Press Release Swiss Gold Sales Less Certain Politicians Reject Swiss Government and National Bank Proposals NEW YORK--(BUSINESS WIRE)--June 21, 1999--The rejection today by the lower house of the Swiss Parliament of a government proposal to amend the central bank article of the Swiss constitution illustrates the complexity and the uncertainties surrounding the whole issue of Swiss gold sales, said the World Gold Council today. A rare alliance of Switzerland's Left and Right political parties joined forces to defeat a constitutional amendment that would have permitted gold to be transferred from the Swiss National Bank to outside agencies and thus have permitted the proceeds of gold sales to fund directly government-approved projects. The Socialist Party (SP) and the right-wing Swiss People's Party (SVP) voted together in the lower house to block the government proposal although the upper house had approved it. ''This development today in the Swiss National Assembly highlights the complexity of this issue and diminishes the possibility of sales in the near future,'' said Robert Pringle, Head of the WGC's Centre for Public Policy Studios. The government and the Swiss National Bank (SNB) have yet to obtain parliamentary approval for the sale of 1,300 tonnes of gold. This needs specific legislation authorizing such sales. The government expects to have this in place early next year, but the rejection of the amendment today makes it impossible for the central bank to transfer gold reserves to third parties, as had been planned. Switzerland currently holds 2,590 tonnes of gold in its official reserves and is the fourth largest holder of gold after the central banks of the Eurosystem, the United States and the IMF. It has been proposed that up to 1,300 tonnes to be used to fund a 'Solidarity Foundation' to help under-privileged people around the world, while those from the remainder would be used to finance projects in Switzerland. ''Several legislative and political hurdles must be surmounted before any gold can be sold,'' said Pringle. ''The SNB and the Finance Ministry have made their recommendations but how they are practically implemented will be a parliamentary decision and one fraught with uncertainty.'' Another factor is the general election scheduled for October this year, which may further delay the planned legislative timetable. ''The debate on the application of the proceeds of any potential sale of gold reserves is at a very early stage. Without that debate being settled, gold disposals of any kind remain unlikely,'' said Pringle. Copies of Switzerland's Gold is available from the WGC or via the WGC website at www.gold.org. Contact: World Gold Council: George Milling-Stanley Tel: 212/317-3800 or Marston Webb International Victor Webb Tel: 212/684-6601