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To: Tomas who wrote (1263)7/24/2001 10:32:10 PM
From: Bill McCabe  Respond to of 1713
 
DJ Bush Admin, Greenspan Oppose Tighter Sudan Sanctions

Dow Jones News Service ~ July 24, 2001 ~ 5:35 pm EST
By Campion Walsh Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--President George W. Bush's administration and Federal Reserve Chairman Alan Greenspan have both voiced opposition to a proposed tightening of sanctions on Sudan that would restrict access to U.S. capital.
Congress is considering preventing oil and gas companies operating in Sudan from listing equity shares or offering debt in U.S. markets. Last month, the House voted 422-to-2 in favor of a bill that would do just that.
Such capital markets sanctions "would significantly damage our relations with European and African countries that are essential to the peace process in Sudan, " a Bush administration official familiar with U.S. sanctions policy told Dow Jones Newswires.
The remark suggests Bush would veto any bill that restricts capital markets.
While the Bush administration official cited diplomatic concerns, Greenspan weighed in with concern about the economy.
The Fed Chairman told the Senate Banking Committee Tuesday that the proposed capital market sanctions would "effectively move a considerable amount of financing out of the United States to London, Frankfurt, Tokyo." The humanitarian goals of the Sudan bill are laudable, but Greenspan said he is " most concerned that if we move in directions which undermine our financial capacity, we are undermining the potential long-term growth of the American economy."
The Senate and House have both passed versions of the Sudan Peace Act, legislation aimed at alleviating suffering in the war-torn African country. But the Senate's version has no capital markets sanctions. The two versions must be reconciled in conference between House and Senate negotiators.
Bush Admin Differs With Religious Freedom Commission
U.S. companies are barred from operating in Sudan. But affiliates of companies listed on U.S. exchanges - including Canada's Talisman Energy Inc. (TLM) and China's Petrochina Co. (PTR) - have major stakes in Sudan's burgeoning oil industry.
Talisman and Petrochina, an affiliate of state-owned China National Petroleum Company, have been targets of human rights activists and religious groups that say their investments support the Sudanese government's military campaign against religious and ethnic minorities.
In March the Congressionally established U.S. Commission on International Religious Freedom recommended tighter sanctions on companies like Talisman and CNPC for their roles in Sudan, as well as a complete prohibition on U.S. import of Sudanese gum arabic, a food additive in soft drinks and candy.
The Bush administration has demurred. The administration official said the House bill's proposal of more-stringent disclosure requirements for companies seeking financing in the U.S. "has a lot of potential to damage U.S. capital markets and undermine the authority of the Securities and Exchange Commission."
In May the SEC said it was requiring more-detailed reporting by non-U.S. companies offering securities on U.S. financial markets, a move that largely preempts the disclosure provision in the House's bill.
As for restricting access to U.S. capital markets, the Bush administration official said, "it wouldn't reduce oil revenues to the Sudanese government and therefore wouldn't affect the ability of that country to fund the war against its own people."
Sanctions Would Affect Subsidiaries, Parents
As proposed in the House bill, companies operating in Sudan would have a hard time avoiding sanctions through "firewalling" techniques such as using affiliates for investments.
A spokesman for Rep. Spencer Bachus, R-Ala., who sponsored the capital markets amendment, said sanctions would apply to parent companies, subsidiaries and affiliates of companies operating in Sudan. "This is similar to how it's worded in the Iran-Libya Sanctions Act: it applies to both subsidiaries and their parent companies," the spokesman said.
Sudan is the scene of one of the world's bloodiest and longest civil wars. The Khartoum-based government has fought non-Muslim separatist groups in the country's southern regions where its major oil fields are. The war has claimed an estimated 2 million lives over two decades.
Since an export pipeline was finished in 1999, Sudan has become a significant oil producer. Output rose to more than 200,000 barrels a day last year, while exports reached 180,000 b/d.
The oil exports have raised hopes in some quarters that one of the world's poorest countries will make rapid economic progress. But human rights advocates say oil sales have also funded bombing campaigns by the Khartoum government against southern rebels and civilians.
In February 2000, the U.S. imposed financial sanctions on Greater Nile Petroleum Operating Co., the joint venture producing most of Sudan's oil. But those sanctions don't apply to the individual members of the venture, including Talisman, CNPC and state-owned Malaysian company Petronas (P.PDG).
-By Campion Walsh, Dow Jones Newswires; 202-862-9291; Campion.Walsh@ dowjones.com
(END) DOW JONES NEWS 07-24-01
05:35 PM



To: Tomas who wrote (1263)7/25/2001 9:38:22 PM
From: Bill McCabe  Respond to of 1713
 
Tomas, I think we can take the target of C$83 and add the discount of C$12 for a total of C$95 after Greenspans comments yesterday. According to my math that puts TLM at
US $60-$65. I also think this will increase the chances of
TLM being a better takeover target and my guess is at
US$90-$100. We have only waited 4 years.

Bill McCabe



To: Tomas who wrote (1263)8/5/2001 11:18:28 PM
From: Douglas V. Fant  Respond to of 1713
 
News Article by PI posted on August 04, 2001 at 09:16:45: EST (-5 GMT)

Oil feeds the fire now in Sudan's long civil war

By Warren P. Strobel
The Philadelphia Inquirer, Washington Bureau
August 4, 2001

BUOTH, Sudan - Mut Chasiay doesn't speak English. But he knows one word, and he repeats it over and over: gunship.

Government helicopter gunships attacked his village of Wattjak and surrounding areas last month, sending thousands fleeing into the bush, he said. Soldiers followed on the ground, burning and looting, killing or capturing young men and women. The rest were driven away from land they had lived on for generations - and away from the oil that lies underneath.

Some survivors walked for two days, they said, to reach Buoth, a remote village about 20 miles south of the government-held oil capital of Bentiu. A militia commander allied with the rebel Sudan People's Liberation Army, or SPLA, is encamped here.

The accounts of Chasiay and six other villagers, thin as wraiths and shivering in Sudan's rainy season, provide new evidence that the Islamic government in Khartoum, which controls the northern two-thirds of the country, is pursuing a "scorched earth" policy against impoverished southern Sudan.

With Russian-built helicopters and other weapons bought with oil money, the regime is depopulating swaths of territory around the fields, which are being developed by foreign oil companies, including a subsidiary of the Canadian firm Talisman Energy Inc.

Straddling the historic line between Sudan's Islamic north and the mostly Christian south, the oil fields yield 200,000 barrels of crude per day, pumped 1,000 miles through a pipeline to Port Sudan on the Red Sea. While they provide a tiny fraction of the 75 million barrels produced each day worldwide, the Sudanese fields are vast and largely untapped.

"We know that somebody comes from another country and takes our oil," said Chasiay, 54.

Oil is now the fulcrum of Sudan's 18-year-old civil war, which has left two million dead and four million such as Chasiay displaced. The conflict, which at various times has been over race, religion and tribe, is now mostly about resources.

Sudan, Africa's largest country, has suddenly been thrust high on Washington's foreign-policy agenda. A coalition of lawmakers, evangelical Christians, and black activists have urged President Bush to play a more active role, citing reports of slave-taking by government-backed militias and the military's deliberate bombing of civilians in the south.

But the oil could dash hopes of a U.S.-mediated end to the war. The Khartoum government, flush with petroleum money and courting foreign investors, appears to have little incentive to make concessions. Rebel leaders in the south, which gets none of the new wealth, vow to attack the oil installations and the foreign companies that operate them. "We consider them mercenaries working for the Islamist regime," SPLA leader John Garang said in June.

The Sudanese government denies it is forcibly displacing civilians to secure control of the oil.

"This is one of the biggest fallacies, that the government is pushing away people," said Sudan's first vice president, Ali Osman Mohamed Taha. Only civilians in areas where drilling is taking place have been relocated, Taha told President Bush's special humanitarian coordinator for Sudan, Andrew Natsios, during his visit to Khartoum last month.

The accounts of Chasiay and the others, including an 8-year-old girl with a mangled nose that villagers said was injured in the attacks, could not be independently confirmed.

But they jibe with reports from human-rights groups and international aid workers of a campaign that benefits both the regime and foreign oil companies.

In one area of eastern Upper Nile province, 48 villages have been burned and 55,000 people displaced, according to a March report by Christian Aid, a British church-based relief group.

"Oil industry infrastructure - the same roads and airstrips which serve the companies - is used by the army as part of the war," the report said.

Rebel leaders concur. Peter Gadet, the militia commander in the area, said the Sudanese military provided protection for the foreign oil operations.

Several of Gadet's fighters carried the long gun of a Russian-built MI-24 Hind helicopter gunship on a wooden trestle. Gadet said his men shot it down a week before a reporter visited July 20.

His men showed their visitors trophies from a June 25 attack on a road construction convoy that was escorted by military vehicles: an antitank weapon with Chinese instructions, an RPG-7 grenade launcher, and a worker's blue jumpsuit with a Canadian flag stitched on. Three Chinese oil workers were killed in the ambush, they said.

As international indignation rises over the oil industry's role in Sudan, the criticism has fallen most heavily on Talisman and the Swedish company Lundin Oil, whose board members include former Swedish Prime Minister Carl Bildt.

The U.S. House of Representatives voted 422-2 in June to bar foreign companies that develop oil or gas in Sudan from trading their securities in U.S. capital markets. U.S. firms are prohibited from working in Sudan under 1997 sanctions.

The measure was aimed primarily at Talisman, whose Dutch subsidiary has a 25 percent share of a consortium developing large tracts of government oil concessions. The other partners are the China National Petroleum Corp. (CNPC), Petronas of Malaysia, and Sudan's national petroleum company, Sudapet.

Officials of the Calgary-based Talisman said the company's presence was helping the Sudanese people. The company has built a 60-bed hospital, schools and medical clinics, and has paid to vaccinate 15,000 people from a half-dozen communicable diseases, said David Mann, a company spokesman.

As for forced displacement of residents, Mann said Talisman spent $150,000 to acquire and analyze satellite photos that showed the population around its oil concessions had actually increased. "The concept of a massive forced displacement to clear development for the oil fields isn't supported by anything we've seen," Mann said.

Critics of the House sanctions, including some Sudanese opposition figures, said that forcing Talisman out would backfire. If the company leaves, its drilling rights will be bought up by the companies from China and Malaysia, countries less susceptible to pressure from human-rights groups, they say.

Bush administration officials said they opposed the House measure for that reason.