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From:
Sent: September 14, 2005 5:12 PM
To: McGregor, David -BOCST -TO; arh@gabrielresources.com
Cc: yani.roditis@rmgc.ro; Pillarella, Franco -B~CST -HOM/CDM;
Subject: Re: Open letter re: Gabriel Resources' Rosia Montana
s.19(1)
ry@gabrielresources.com

David:
The words attributed to me are not exactly what I said but essentially deliver the
messsage that I wanted to leave with the audience of mining experts that was convened at
the King Edward Hotel in Tornoto in early August.
I believe a qestion was directed to me from the floor regarding what support Canadian
Embassies are providing to Gabriel in its efforts to exeute its contract. with the
Government of Romania to develop a mine at RosiaMontana. I respondedto the effect
that the government of Canada through its missions in Bucharest and more lately in
Brussels was giving full support to the company in contacting key interlcuotrs and in
some cases, lobbying the government of Romania to ensure that the issue of permits
should be decided on the merits rather than on the emotion whipped up by those who oppose
this project and in certain cases, mining in general.
In my own case for example, when I was Ambassador in Bucharest, called on Prime
Minister Nastase shortly after he is said to have commented publicly that the mine would
. never be built as long as he was in power. My message to him was that I could tell him
I
'~"- from first hand experience that Rosia Montana ~s not a pristine rural paradise but rather
. an ugly and neglected industrial site that continues to pollute the water courses of the
. area and must be cleaned up sooner or later. I argued that Gabriel has a contract to do
'. just that and Romania could have confidence that a Canadian company would deliver on its
commitments. Whether such an initiative carried out by a Plienipotentiary constitues
"supprt by thee "government" I legal to the lawyers to decide. My intention was to help
a Cnaadian company stave off political interference.
If the open letter suggests that there is political support in Canada for Rosia Montana,
it is in error since this is not an issue on which political support would be sought or
granted. Gabriel Resources is a legally constituted Canadain company which holds a
contract to develop a property in Romania. It was and remains only one of several
Canadian companies active in the natural resoruces sector of the region and the seveal
countries to which the Ambassador resident in Bucharest is accredited. It has a right to
request service from Embassies abroad and since it is a reputable company that so far has
acted within the laws applicable to its activites. There would be'no reason to withold
service. since th~ project was congruent with the Embassy' overall efforts to promote
economic growth in Romania. Canada is a world leader in fostering policies of
sustainable development including responsible mining in developping countries, and during
my tenure in Romania we launched three major projects in conjuntion with the UNDP to
promote these ideals. The development of Rosia Montana was congruent with these
principles.
When I stated that the missions were providing full support to Gabriel, not to mention
other companies such a~ Dundee Metal in Toronto related to their Chelopek property in
Bulgaria, I reflected not only on my efforts as Head of Mission and those of my staff at
the time but also on subsequent representations by members of DFAIT who have intervened
to promote an early decision on the question of permits to develop the mine. For
example, the Director General of Sothern and Eastern Eujrope, David Preston raised the

issue of Rosia Montana with President Basescu's Economic Advisor, Stlolojan, during his
first visit to Bucharest either late in 2004 or early in 2005. The Director for S.E.
Europe, Marta Moszszenska also raised the issue for discussion at the annual review of
bilateral economic relations with the Romanian delegation in the late spring of this
year.
When I introducted the
and her staff in May,
program for him on his
Bucharest.
Again this is a question of logistical support and lobbying on behalf of a legitiamate
Canadian company rather than a bilateral policital initiative.
If you need more on this, please let me know.
the new CEO of Gabriel, Alan Hill to Mme Moszczenska
she offered DFAIT HO's good offices to arrange a
first round of visits to senior Romanian government personnel in
Raphael Girard