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There are 2 funding requests involved, in US dollars, which are
being supplied via a single collateral consortium of world banks:

a) $12T of 7.5% Interest, 20 Year and 1 Day, Fresh Cut PBN's
Swiss Bank Corp., with Deutsche Bank as Issuing Bank for Punders

Transaction Code: DKGO 83188 and JOS-TT-001

b) $15.5T of 7.5% Interest, 20 Year and 1 Day, Fresh Cut PBN's
Banque Romande as lead Punding Bank

Transaction Code: G.O.C.H. 11 0888

Collateral Code for both: EFG JACOBE/ICC400/322/C34i6
with Barclays Bank PLC of London and AMRO Bank of Amsterdam being
the lead banks handling the collateral.

BACKGROUND

Promissory Bank Notes (PBNs) are one form of Bank Instrument used
by countries in their national debt financing. They are also
used as the basis of arbitrage transactions, which are illegal in
the United States, but not elsewhere. In this transaction for an
overall face value of $27.5 trillion US dollars, the PBNs have
been purchased by a consortium of funders, predominantly from the
Far East and Europe. The funders have agreed to purchase the
PBNs at 71.5% of their face value, to be repaid at par in 20
years and 1 day, together with an annual interest of 7.5% The
PBNs have been sold by a consortium of some 200 banks at a cost
of 61.5%. The 10.0% difference is made up of bank fees,
suppliers (collateral) fees, funding agents fees and various
commission fees, together with monies going to various countries
to fund projects.

Whilst the US Government has no direct role in this transaction,
it is involved in its administration because the currency basis
is the US dollar. In this type of transaction the only "real"
money involved is the 10% difference between the cost and the
invoice price to the funder's; the remainder is a computerised
paper transaction. The "real" money was supplied by a variety of
sources in many different currencies, in gold and other forms of
convertible collateral. The US Government's role was to agree to
convert these foreign monies into US dollars, which they did at
considerable profit by converting at a substantial discount.
Because of the huge amounts of money, these conversions took
place in major US banks, led by Morgan Guaranty Trust Bank, under
the direction of the Comptroller of Currency, a part of the US
Treasury Department, in co-operation with the Federal Reserve,
the Attorney General, and the State Department, under the overall
direction of the White House.

This loan transaction is the largest ever put together, and some
two thirds have been completed, resulting in some 1.76 trillion
dollars worth of foreign monies having been put up for
conversion. We do not know the discount employed, but we believe
that it was between 10 and as much as 25% in some cases, hence
the remaining monies for disbursement must lie somewhere between
1.3 and 1.6 trillion US dollars, i.e. the United States has already
received a minimum of $150 billion dollars in "conversion" fees.
The remaining monies for disbursement have been held by the US
banks, for reasons which can only be described as fraudulent,
under the direct instruction of the US Government, for over a
year and a half. In addition, there has been a conspiracy of
misinformation, orchestrated by the highest levels of the US
Government, regarding the exact whereabouts of there monies and
the timing of their payout. ' These monies should have been paid
out in June, 1989, or shortly thereafter.

TAX AGREEMENT

To avoid key Government people becoming directly implicated in
the delays and improper uses of the money, a tax treaty was
agreed on June 28th, 1990, between the IRS and the transaction
Mandate, Mr Alex Gaus, Jr, Trust Manager of First Central
Holdings Inc. of Chicago, whereby a single, reduced tax sum of 15%
only would be taken out up front, instead of the full amount
otherwise due in 1991 from the Trust in taxes. This reduction
was in lieu of the interest which should have been earned since
April, 1989, and the advance tax payment. As a result of the US
Government budget negotiations in July, the Government requested
that the treaty sum be increased to 18%, a total tax payment of
$318B. This was agreed to by Mr Gaus on July 25th.

Whether co-incident ot otherwise, it should be noted that on
Feb. 7th, 1991, the Secretary of the US Treasury Department,
Nicholas Brady, announced that the Budget deficit forecast for
1991-92 would be $318B.

Together with the "conversion" costs, the United States will have
benefited from this transaction by a sum of at least $400 Billion
US dollars, yet they are still holding onto all the monies for
disbursement.

THE DELAY TACTICS

Because of delays in commencing the payouts of the commissions
and fees, the UK Government's Department of Trade and Industry
(DTI) requested Mr Gaus to submit a formal demand for the
payments, which was delivered both by DHL courier and by fax on
June 7th, 1989 to the Chairman of Barclays, Mr J Quinton. No
payments resulted. This was the start of a long series of
delays.

The control of the daily disposition of the monies has been co-
ordinated through the Office of the Comptroller of Currency,
working with the Federal Reserve, the Treasury, the Attorney
General and the 'big 5 banks' in New York, led by Morgan Guaranty
Trust Bank. The North Carolina National Bank has also been
deeply involved.

On the one hand parcels of money were placed out all over the
world to earn interest, whilst on the other hand the mandate, Mr
Alex Gaus, Jr, was fed a series of stories that the payout was
imminent. He had arranged that the monies should be funnelled
through a Trust account in the Standard Chartered Bank in
Chicago. Repeatedly it was promised that the monies were about
to be, or were in the process of being, transferred to that
account. This went on on a daily basis, with a definitive promise
made for September 4th, 1989. The daily promises continued.

On October 17th, 1989, the European Central Banks prepared a
lawsuit against the US which the Rothschilds were happy to sign.
On Oct. 27th, 1989, the Central Banks in Europe filed a formal
complaint against the US Treasury. On November 1st, President
Bush set up the Blue Task Force reporting directly to himself,
with ex-President Ford and Senator Robert Dole in charge of day-
to-day affairs, to investigate the complaints. They discovered
that the Federal Reserve and other Government Agencies had
concocted stories to tell Mr Gaus and others involved in the
transaction. The Agencies were chided by President Bush on
November 15th, 1989. The Blue Task Force finished its work in
early January, 1990.

On December 4th, 1989, the US Government decided to change
tactics. Mr Gaus was informed that the Standard Chartered Bank
was too small to handle the transaction and did not have a Trust
Department able to handle such large amounts of funds. They
decided, with the Federal Reserve, that the Trust should be
handled by First National Bank of Chicago. This was agreed to,
but the net result was the same, with the Trust not becoming
active, as promised. The Central Bank of Holland became very
angry, and on December 7th demanded that they take up their seat
on the Federal Reserve Board to pressurise the Board to make good
their promises. On 13th, the Chief Counsel of the Federal
Reserve in New York, Mr Patrikis, according to reports from the
US Treasury and the US Attorney General's Departments, was fired.
The role in the Government's actions of Mr Alan Greenspan,
Chairman of the US Federal Reserve, was questioned. This was as
a result of an investigation by the OSI into misappropriation of
major funds and other irregular practices.

On December 8th, 1989, Mr Gaus was Interviewed by the FBI to
determine how strong his case was against the US Government. He
told the FBI that it was not the Government's money, and that
ultimately the European Central Banks and the Rothschilds would
be held responsible for payment, who in turn would charge the US
Government of embezzlement of the funds sent over in April, 1989.

From the start, a strong liaison was maintained by Mr Gaus with
Baron Rothschild in Paris and Mr Konoble, President of the World
Bank, but even they were continuously lied to. For example, on
December 15th, 1989, the Rothschilds were informed "that the
transaction was complete with just a little work remaining in the
Trust department. Likely to be disbursed on the following
Monday."

On many occasions the money was released as credits to the Trust
account, but there were no monies to back the credits, so the
credits were voided. For example, Mr Gaus received a call from
Senator Dole's office on December 28th to say that the release
had been executed late the previous evening - nothing transpired.

In early 1990 Mr Gaus discovered that the paylists, as originally
documented, had not been lodged as stated with the purchase
contracts, and the fee disbursements had all to be re-negotiated.
He finally resolved a revised fee schedule on April 2nd, 1990.

On March 7th, 1990, Mr Gaus decided to set up his Trust Account
in the Harris Trust of Chicago (a Republican bank) on the basis
that they were not involved in holding any of the monies, and
that they would only be paid their fee on completion of the
disbursements. This was agreed to by the Government. After a
month of involvement, Harris Trust decided that it was too
tangled, and they could not handle the risk on their own, so
Continental Bank of Illinois was called in. It was believed
that this was safe because the Comptroller of Currency had
previously given a substantial bail-out loan to the bank and
thereby was the largest (25%) shareholder. By May 4th the Trust
Account negotiations were completed under the jurisdiction of
Continental. However, the banks and the US Government continued
to stall over sending the monies into the designated Trust
account.

Some of the Government liaison with Mr Gaus in the early part of
1990 was through the CIA, but that was very limited.

President Bush ordered the release of the monies at a Cabinet
meeting on April 2nd, 1990. This was resisted by Mr Brady, who
was over-ruled by the President. Still it was not paid out.

Investigations were made into First National's role. "Payout
delayed until after April 17th to complete investigations into
possible arrests of top bank officials."

By late April, 1990, the US Government was under severe foreign
pressure, and President Bush took charge directly, with his Chief
of Staff John Sununu handling day to day liaison with the
Mandate, Mr Gaus. Despite many promises and reports, nothing
reached the Trust account.

On May 8th, 1990, there was an official complaint by the
Trilateral Commission against the transaction regarding the
arbitrage split between Japan, Taiwan and the US.

In July, 1990, it was discovered that the Comptroller of
Currency, Mr Clark, a Reagan man, had opened an account in the
name of First Central Holdings, but under his own control. So
when he said things had moved towards the account, and others
monitored the movement of monies, the statements were seen to be
correct. But of course subsequent payouts never occurred. On
July 18th a Government lawyer reported that President Bush had
suspended Mr Clark and sent him on an extended vacation, and his
position was temporarily taken over by Judith Walters. Mr Clark
had appealed to Mr Reagan and President Bush had had to confront
Mr Reagan in his California home the previous week, in the
presence of ex-Presidents Nixon and Ford, and tell him that he
was no longer running the Government and could not do so in
absentia. It was then discovered that Mr Clark had had Mr Gaus'
phone tapped. It was also discovered that Mr Clark had not
previously revealed to the President's staff where all the monies
had been placed, some in secret accounts. When Mr Reagan was
informed he was "mildly embarrassed." Other changes took place in
the C of C's office, with Karen Wilson moving from Chicago to New
York and Robert Herman taking over in Chicago, reportedly to
close any areas whereby the Government's role in the delay and
deception might leak out.

Beside daily promises of positive activity, these are some
examples of particular unfulfilled completion promises from the
White House to Mr Gaus:

"President Bush issued yet another release decree on June
4th, 1990, for immediate disbursement."

"The monies had to be paid out before President Bush met
President Gorbachev in Helsinki in June, 1990."

"The monies had to be paid out before the July, 1990 NATO
meeting."

"The monies had to be paid out on conclusion of the G7
meeting in Houston on July 11th, 1990." On return to the
White House, late in evening, President Bush signed off on
each block of money. "Documents to be received on 12th
confirming President Bush and Sununu's orders."

"To be paid out immediately Congress rose on August 3rd,
1990."

At the end of August, 1990, the banks claimed that they could not
locate all the monies, so Mr Gaus as asked to take some Treasury
Bills instead. The Treasury Bill preliminaries were simply
another planned delay tactic that wasted another few weeks.
Ultimately all the monies were located and so the Treasury Bills
were scrapped as unnecessary.

THE CURRENT SITUATION

By mid-September, 1990, when nothing had materialised, Mr Gaus,
as mandate for the Transaction, filed a mandamus in the State
Court of Illinois requiring the banks to make full disclosure on
the disposition of the monies and requiring them to place the
monies under the control of his Trust account. Various amounts
of money trickled in from all over the world during the next few
weeks, until finally on October 3rd the Comptroller of Currency's
Office issued instructions to the Federal reserve to release the
monies to the Trust account. It was stated that the commission
and fee monies sent out from the Trust account on October 4th
would reach the various payees around noon, Friday, October 12th.
They did not arrive.

On october 15th, 1990, Mr Gaus took Continental Bank to court to
demand that they give out proper information and follow his
instructions. This was completed at 1.30pm on October 16th and
Mr Gaus received the document at 3.30pm. The last banking
details and sequence numbers were registered at 2.30am, on 17th.
It was decreed that the details should be handed over at 4pm. A
pouch containing the details was delivered to the World Bank at
4.30pm. Some people from Washington were to bring a similar one
to Mr Gaus, and it was delivered to Continental by midday on
18th, and officially signed over between 43 and 3.15pm. Mr Gaus
was to receive the receipts, by due legal process, on 19th, after
10am.

In October, 1990, Senator Lloyd Bentsen, at the request of a
personal friend and co-ordinate in this transaction, met with
John Sununu, White House Chief of Staff, to discuss the delays in
the payments, and Sununu assured Senator Bentsen that they would
be made shortly. On Nov. 14th we learnt from Mr Gaus that the
FDIC had been delegated full powers, acting as owner/banker, to
distribute the monies under the court orders, so eliminating any
further role by the Federal Reserve and the Administration.

On Dec 30th, 1990, the 2nd and final court extension expired at
midnight. The money had been ready for payout since Thanksgiving
but lawyers had been trying to close loop holes to protect the
President, his staff and members of his Cabinet over their roles
in the delays. The lawyers claimed to have finished these legal
manoeuvres by Jan 2nd, 1991, and the monies should have been
released in a day or two! Mr Gaus liaised with Mr Withley, lawyer
for the FDIC on Jan 4th, and received papers pursuant to the
court order.

On Jan 8th, 1991, Mr Gaus claimed that the Government entities
were completely inept and fearful to make decisions in case they
implicated the Government in the previous mishandling.

On Jan 10th, 1991, Mr Gaus had received an audit for the monies
sent out, but the final release had not been issued by Washington
on 11th, as agreed. On Jan 14th, the lawyer for the Republican
Party said to Mr Gaus that it was "all very positive". However,
on 16th and 17th there were repeated stalls in order to move
small amounts of money into the accounts. On jan 18th Morgan
Guaranty Trust Bank reported to Mr Gaus that there were no
further postings to the accounts and that the 5th or 6th final (!)
audit had been completed at 12.17 pm by Arthur Anderson & Co. We
then learnt that they were making further postings up to 2.30 am
on 22nd: Mr Gaus received a fax at 3.43 pm CST stating that all
transfers had been capped and the trial balance was OK.
According to the Federal Reserve and Government sources and the
FDIC, the payment process supposedly started on Jan 18th, 1991.

On Jan 23rd, 1991, Mr Gaus received a 4th invitation to sign
receipted documents pursuant to the court order, and the monies
were then supposedly on the way to the various payee accounts,
according to reports from Government lawyers. On 25th a fax was
received by Mr Gaus stating "At the demand of the Treasury
Department a massive internal movement of funds to the First
Central Holding Company Account Holders had started at 3 am EST
and was completed at 7.36 am."  This was verbally confirmed by
both the Government and banking sources on 28th. That evening Mr
Gaus reported that he had just signed the invoices for the monies
sent out to the payees and would get a summary document in the
morning.

Late on Jan 30th, 1991, all the interbank code were cleared by
the US Treasury Department. The next day the Federal Reserve
reported to Mr Gaus that everything had been cleared by the
afternoon.

Government lawyers spoke to Mr Gaus on Feb. 8th, and reported that
"there was nothing left to clear. Money is on the way to the co-
ordinate accounts." On Feb. 11th, the Federal Reserve and the
FDIC reported that everything had been released to the accounts
on the 11th. On Feb. 12th a confirmation report was received from
the Federal Reserve that everything had been cleared through the
Federal Reserve account in Morgan Guaranty in their designated
bank to go to the co-ordinate accounts, and receipts for those
transfers were received back by the Federal Reserve at 4.05 pm
EST on Feb. 12th, 1991. A fax was received from the Federal
Reserve in the morning of Feb. 14th with a full report on the
portfolio, together with the comment that "First Central Holding
Company will receive all indemnification and receipts between
this afternoon, Feb. 14th, and 9 am of Feb. 15th, 1991."

On the morning of Feb. 15th a telephone call was received from
John Sununu's office General Council that "final documents on the
release of funds from the Federal Reserve would be completed by
early afternoon, today Feb. 15th, and their office will inform
First Central Holding Company immediately, and they will be
available for Mr Gaus sometime today."  On Feb. 19th, the Federal
Reserve telephoned Mr Gaus to state that "the documents slated
for release 14th and 15th were not released until noon today,
19th.  You will be notified in the late afternoon today as to
when to pick up those documents."  Government lawyers also called
and confirmed that the documents had definitely arrived in
Chicago, and he would be "notified very shortly."  The Government
lawyers have been stating on a daily basis that documents are
ready, but as of Feb. 22nd, 1991, none of these documents have
been received by Mr Gaus.

Since mid-September, 1989, the Government and the Mandate, Mr
Gaus, have been under severe pressure from the European Central
Banks because the Banks' demands for payment have been totally
ignored.

We have learnt from bitter experience that we cannot trust any
promises. To date, no solid evidence of any payments to any
person or organisation has been produced. We can only believe
when the monies actually reach the accounts of the payees and are
negotiable.

In case legal action may have to be taken against the Principals
involved, everything is now fully documented as regards when the
funds were released by the Federal reserve through the major
banks in New York that are acting as the Federal Reserve
depository and as correspondants for the co-ordinate accounts.
There is a complete written record of faxes and documents
received by First Central Holding Company throughout the history
of this transaction and there documents have been placed in a
safe deposit.

TRANSACTION DETAILS

The first attempts to put this transaction together started some
three years ago, in the Reagan administration, and it was then
known as the "Baker-Brady-Bush Deal". The last attempt in the
Reagan term failed on November 8th, 1988. The funding request
was then given to Mr Alex Gaus, Jr, Trust Manager of First
Central Holding Co just prior to November 15th, 1988, and he
restructured the funding request into two main parts:

The first part was organised with the Canadian Imperial Bank of
Commerce for a total of 6 trillion US dollars, together with the
Swiss Bank Corporation (SBC), also for 6 trillion US dollars,
giving a transaction total of 12 trillion US dollars. This part
was subsequently merged under the SBC for the total 12 trillion
US dollars. The second part was organised through the Banque
Romande for a total of 15.5 trillion US dollars, giving a grand
total of 27.5 trillion US dollars.

The new, combined request to purchase was issued on 4th January,
1989 to specialized brokers, who passed the request through to a
supplier of PBNs ("collateral provider"). The Sight Drafts for
both transactions were screened by the AMRO bank in Amsterdam,
and the collateral was organised, under a single collateral
supply code, to be supplied through Barclays Bank PLC in London
as the lead bank fort the SBC transaction and the AMRO Bank in
Amsterdam as the lead bank for the Banque Romande transaction.
(Barclays also supplied a small part for the Banque Romande
transaction.) (The single collateral supply code was reconfirmed
on April 20th, 1989.)

The commission payments were arranged and allocated by Mr Gaus in
consultation with the funders et al on January 17th, 1989. Mr
Gaus submitted all the individual commission fee payorders via
the SBC to be lodged with the contract, but these were rejected
in favour of a simple summary list prepared by Mr Gaus on
February 6th. Both Barclays and AMRO verbally confirmed that
these master paylists were lodged with the purchase contracts.

The Barclays transaction was temporarily halted on April 16th,
having processed approximately 8 trillion dollars, an the AMRO
transaction was similarly halted on April 18th, having processed
approximately 9 trillion dollars. the total commission fees and
charges for all parties earned to date, less 10 billion on each
transaction, were transferred to the respective New York branches
of Barclays and AMRO on April 24th and 28th and placed in special
"red star" internal VIP accounts, ready for disbursement.

On May 25th, 1989, the final audit for Barclays' 8 trillion was
completed, and the funders and collateral suppliers signed off.
The audit of the AMRO transaction was similarly completed on june
2nd, 1989. The commission fees earned to date should have been
disbursed shortly thereafter. The transactions were to be
resumed after Government review.