(trickydisco),

Thank you for your correspondence of April 22, 2008, which was also
forwarded to me by the Office of the Prime Minister, regarding the
recent suspension of mining activity in Ecuador and the potential impact
on Canadian companies operating in the region. 

Let me assure you that we are taking this matter very seriously. Since
April 18, 2008, the Constituent Assembly of Ecuador voted in favour of a
mandate that declares most of the country's mining concessions
suspended. Since then, Canadian officials have undertaken several
actions to ensure the protection of Canadian interests. 

Officials at the Canadian Embassy in Quito were immediately in touch
with Ecuadorian representatives to obtain clarification on the precise
details of the mandate, its legal implications and its potential effect
on Canadian companies. Subsequently, the Canadian Embassy in Ecuador
secured a meeting between the Canadian Ambassador, eight Canadian
companies and Ecuador's President Raphael Correa. This meeting served to
state the implications of the approved mandate on the respective
companies and to share Canada's position and concerns with respect to
the mandate, including the considerable loss of market capital on the
international stock markets. 

Furthermore, Canada has a Foreign Investment Protection and Promotion
Agreement with Ecuador. This Agreement provides Canadian investors with
guarantees against discrimination and expropriation without
compensation, which, if breached, can be the basis for a monetary claim
by affected investors before an international arbitration tribunal. The
Government of Canada has stated its expectation that the Government of
Ecuador will fully honour its obligations under this Agreement. A
delegation from Canada will be travelling to Quito, Ecuador, at the end
of May to hold discussions with government officials and ministers of
the Correa administration. 

Although some uncertainty remains, the Government of Canada is taking
the necessary steps to ensure the protection of Canadian interests. I am
hopeful that a workable solution will be found for many of Canada's
investors.

Sincerely,


The Honourable David L. Emerson, P.C., M.P.
Minister of International Trade and 
Minister for the Pacific Gateway and the Vancouver-Whistler Olympics