Introduction of speakers at GATA African Gold Summit

Here is the text of GATA Chairman Bill Murphy's address
to the GATA African Gold Summit in Durban, South Africa,
on Thursday, May 10, 2001.

* * *

By Bill Murphy, Chairman
Gold Anti-Trust Action Committee Inc.

Two and one half years ago it was clear to me that the
gold market was rigged. I could see that just by the
way the market was trading after the Long Term Capital
Management hedge fund blow up and bail out by New York
and Federal Reserve Banks. Every time gold poked its
head up and began to rally, the same sellers showed up
at the same time, usually at critical technical levels.

What is amazing to me is that since those days of 30
months ago, all the evidence that the GATA camp has
amassed has supported that initial supposition. It has
been like pieces of a giant puzzle coming together with
each additional piece of evidence fitting in perfectly
with what was previously discovered. At no point in
time these past years have we uncovered any information
that contradicts our initial analysis.

What is most disturbing about our discoveries is the
realization that the manipulation of the gold market
was set in motion to benefit so few at the expense of
so many -- especially to the detriment of the people and
economies of the African gold producing countries.

What I am about to present to you will be even more
disturbing.

The Gold Anti-Trust Action Committee is an apolitical
organization -- that is to say we espouse no political
views, nor advocate any political philosophy or party
in the United States.

However, we do not hesitate to put the blame for the
orchestration of the gold market manipulation squarely
where it should be and that is on the Clinton
Administration. What makes our findings so outrageous
is that President Clinton and Treasury Secretary's
Rubin and Summers publicly declared their intentions to
help the poor African countries, while behind the
scenes, and in the most un-American of fashions, they
were doing just the opposite.

To put this all in perspective, I have some handouts
for you that includes our GATA African Gold Summit
Action Plan.

The other is from the Congressional Record Copy of the
Congressional Black Caucus regarding the International
Monetary Fund's gold sale proposal of two years ago:

It is a letter to President Clinton signed by members
of the Black Caucus with additional remarks by
Congressman Bennie Thompson. The following is a quote
from your handout by Congressman Thompson to the
Speaker of House, Dennis Hastert, who subsequently met
with the GATA delegation:

quot;Mr. Speaker, we here in Congress do not have the
ability to stop the sale of gold from other central
banks, although we can make our disapproval manifest.
However, we can stop the sale of IMF gold, and we need
to do it now. Our disapproval of the gold sale is not
an obstacle to debt relief -- there are many ways to
deal with debt relief without IMF gold sales.

quot;Mr. Speaker, Members of the House on both sides of the
aisle have written to the Treasury Department and to
President Clinton stating our unequivocal opposition to
gold sales by the IMF, and without objection, I would
like to enter into the record copies of those letters.

quot;Before the South Africans begin their march on
Saturday, I urge the President to respond to this
crisis by withdrawing his support for IMF gold sales,
and withdrawing Treasury's request for authorization to
support it. The countries we are pledging to help
should not be cursed by our misguided generosity.quot;

Some generosity by the United States! I think you can
see where I am coming from based on what the GATA camp
experts have presented here to you today. The Clinton
Administration's goal was not to help the poor, but to
find a way to get 3,000 tonnes of IMF gold into the
physical market to keep the gold price from rising.

Ironically, not only were the National Union of
Mineworkers, the South African gold producers and the
Black Caucus against the IMF gold sales, but the
following in the U.S. Congress wrote that letter to
Treasury Secretary Rubin stating that they would oppose
the IMF gold sale proposal:

1) Republican Jim Saxton, chairman of the Joint
Economic Committee. 2) Republican Jesse Helms, chairman
of the Senate Foreign Relations Committee. 3) Democrat
Tom Daschel, Senate Minority Leader. 4) Republican Dick
Armey, House Majority Leader. 5) Republican Tom Delay,
House Majority Whip. 6) And Democratic senators such as
Richard Bryan, Tim Johnson, and Harry Reid.

All of them warned outgoing Treasury Secretary Robert
Rubin that they would oppose the proposal.

All told, this may have been the most unusual political
alliance in U.S. political history.

On top of all of this, 36 out of the 41 poor gold-
producing countries registered their disapproval of the
proposed IMF gold sales!

If all these disparate individuals and groups were
against the IMF gold sales, one has to ask why the
Clinton administration was so strongly for them in the
first place?

I think you have clearly received that answer today and
can begin to understand the hypocrisy and immorality of
it all.

There is something else. The evidence you have heard
during this summit cites the 1994/95 time frame when
the orchestration of the manipulation of the gold price
was set in motion in earnest. That was the time frame
that Alan Greenspan, chairman of The Federal Reserve
Bank in the U.S., abruptly took his seat on the Board
of Directors of the Bank of International Settlements
in Switzerland.

To give you greater insight into how much Clinton
Administration effort was put into the planned IMF gold
sales and of their understanding of the need to get the
IMF gold into the physical market place for The Gold
Cartel to perpetuate the gold scheme, I read the
following from the Federal Reserve Bank meeting of
April 28, 1995:

quot;CHAIRMAN GREENSPAN. We had the Russians in who gave a
somewhat upbeat view of where they were. We had
technical discussions on GATT and potential sales of
gold by the IMF for the purpose of using the interest
on the sale proceeds to finance various programs in the
IMF.

quot;MR. MOSKOW. Mr. Chairman, just by coincidence, is
visiting Chicago now and will be in our Bank this
afternoon: I'll be meeting with him later. I was just
wondering if he had any views that would be helpful for
us to be aware of.

quot;CHAIRMAN GREENSPAN. Remember that the sale of gold for
purposes of financing certain IMF programs.quot;

All of this focused effort for a program that virtually
nobody wanted, except for the insistent Clinton
Administration. Why was an IMF program so important to
the chairman of the Federal Reserve Bank of the United
States anyway?

One can now grasp the importance of Alan Greenspan's
TWICE-made comment on July 24, 1998, before a House
Banking Committee and on July 30 before the Senate
Agriculture Committee, quot;Central banks stand ready to
lease gold in increasing quantities should the price
rise.quot;

The obvious question is what did he know and who was he
talking about because that is EXACTLY what has happened
every time the price of gold has rallied the past three
years -- to the detriment of all the African gold-
producing countries!

I am bringing this all up for a reason and will get
back to it in a bit.

When GATA invited the summit attendees, we stated that
we would present an action plan to end this gold market
manipulation. It is my opinion that if this plan is
implemented, it will result in that tremendous rise in
the price of gold and stimulation of the economies of
the African gold producing countries that GATA speaks
of.

Now, what you have heard today is a mouthful; a great
deal of information to comprehend. Many of you have
heard what the GATA camp has had to say for the first
time, so while are evidence is extraordinarily
compelling and we have no doubt we are correct, it has
to be difficult for you to know if that is the case for
certain.

Therefore, we are suggesting an action plan that is
very straightforward and one that few in the world
could disagree with; that is to search out the TRUTH by
having the leadership in each gold producing African
country ask specific questions to various individuals
and institutions about the allegations we are making.

Perhaps it should be the mining or trade unions that
should ask the questions or maybe it should be the
mining ministers. That is a protocol that must be
decided on an individual basis.

Regardless of who asks the questions, there is no
reason that these various governments, institutions and
individuals should not willingly answer them, as it is
these same financial institutions, or individuals, that
are clamoring for greater financial market transparency
so that there is less chance of financial market
calamities in the future due to unsafe business
practices.

All you will be doing is quot;calling themquot; on their own
exhortations.

Therefore, I suggest these questions be asked. I also
see no reason why an inquiring and disinterested media
cannot also ask the same questions in a search for
truth and transparency, especially when the answers to
the questions might have such an impact on so many
countries in the African continent.

Here are some of the GATA camp suggestions:

1. To the IMF: Is it possible that IMF gold is reaching
the physical gold market in any way shape, form or
fashion? Does the IMF have gold on deposit at the Bank
for International Settlements? If so, how much? Is any
IMF gold deposited at the BIS or IMF quot;earmarked goldquot;
at the New York Fed entering the physical gold market
at this point in time?

2. To the Bank for International Settlements: Are you
lending gold on behalf of the IMF in any way?

3. To the bullion banks: According to the statistics of
the BIS and the Office of the Controller of the
Currency in the United States, the notional value of
gold derivatives exploded on the books of Chase
Manhattan Corp., J.P. Morgan amp; Co. Inc., Citigroup Inc
and Deutsche Bank from June 1999 through January 2000,
while remaining steady at other bullion banks. How do
these defendants in the Howe/GATA complaint account for
this gold derivative buildup, which is quite large in
relation to their capital?

4. To J.P. Morgan/Chase, Goldman Sachs, Deutsche Bank
and Citibank: Has any facet of the U.S. Treasury or
U.S. Fed guaranteed any gold derivative positions on
your books against a loss?

5. To the treasury secretary of the United States, Paul
O'Neill: Various Treasury officials have denied any
involvement in the gold market by the Exchange
Stabilization Fund. However, beginning in 1996 there is
a pattern of discrepancies between the Fed's gold
certificate account and the quarterly U. S. Treasury
statements (that include the ESF gold figures) which
should be the same. At the end of 1999, the ESF record
showed a $41 million, or approximately 30 tonnes,
excess over the gold certificate account. Could you
please reconcile the discrepancy since the Clinton
Administration reported to Congress that it did not
engage in any currency interventions from 1998 through
March 2000?

Can you explain during this period how it is that the
ESF reported profits that generally coincided with
periods of falling gold prices while its losses
generally coincided with rising gold prices?

Would you please explain the details of the ESF gold
swaps mentioned by General Counsel Mattingly of the
Federal Reserve in the January 31, 1995 FOMC meeting
transcript? With whom were these swaps made? Were the
U.S. gold reserves part of the swaps? What were the
gold swaps Mattingly made reference to, and have there
been others since?

6. To the central banks: Why do you book gold bullion
and gold receivables as one line item, defying
Generally Accepted Accounting Principles and making
clear that you do not want transparency in the gold
market? Are you unwilling to make public the size of
your gold loans/deposits because you realize the total
weight of these loans/deposits are so vast -- anywhere
from four to six times total annual production -- that
it is unlikely they can be repaid?

7. To Bank of England Governor Edward George: Did you
make a statement to Nicholas J. Morrell, Chief
Executive of Lonmin Plc following the price rise after
the Washington Accord that essentially said the
following? quot;We looked into the abyss if the gold price
rose further. A further rise would have taken down one
or several trading houses, which might have taken down
all the rest in their wake.... Therefore at any price,
at any cost, the central banks had to quell the gold
price, to manage it. It was very difficult to get the
gold price under control but we have now succeeded. The
U.S. Fed was very active in getting the gold price
down. So was the U.K.quot;

Alan Greenspan of the U.S. Fed and Paul O'Neill, new
U.S. Treasury Secretary, should be asked whether the
U.S intervened in the gold market in any way following
the sharp price rise after the Washington Accord.

And finally, as per the previous Greenspan commentary:

8. To the U.S. Federal Reserve Bank Chairman: On July
24, 1998, before a House Banking Committee and on July
30 before the Senate Agriculture Committee, you stated,
quot;Central banks stand ready to lease gold in increasing
quantities should the price rise.quot; Since then, that is
exactly what happened every time there was a gold price
rally -- to the detriment of the African gold-producing
countries. How did you know that and what specific
central banks were you referring to?

* * *

The charges made by the Gold Anti-Trust Action
Committee are very serious, and the implications for
sub-Saharan Africa are dramatic. You deserve them to be
answered. You deserve the truth, the answers to these
questions, or ensuing silence instead of a response,
will reveal that truth.

To help you ferret out what has happened to gold, I
strongly suggest you call on the Black Caucus in the
United States and have them assist you, as they did in
the African effort to defeat the IMF gold sales. You
know who they are now and you can get to them very
easily.

While most of them are in the Democratic Party in the
United States, whose administration orchestrated the
gold scheme, I would think they would want to know if
they were let down by their own leadership and if their
brothers and sisters in Africa were betrayed. I think
that they would like to find out for themselves before
it is brought to their embarrassed attention by
opposition parties. I urge you to give them that
opportunity.

Perhaps, it will be Republican Congressman Thompson who
will run with the ball and assist us all in our fact-
finding mission.

Timing is critical at the moment. As far as I am
concerned, this is a Clinton administration scandal.
The Bush administration is new and they have to be
trying to figure out how to handle this giant mess.
However, the Republicans only have so much time to
bring this out into the open, or allow the price of
gold to rise sharply, before they become implicated
themselves. The longer they are in control in
Washington, the more the public will blame them when
the gold market blows up, and it is surely going to.

The Republican Party in the United States received the
lowest black vote in the recent presidential election
in 40 years. If there is enough rage from Africa about
what the prior Democratic administration did to
suppress the African economies and handicap the black
leadership in this continent, I should think it can
only accrue to the benefit of the Republican Party when
it comes to greater black voter support in the future.

If there is enough furor and commotion about this issue
around the world and in the United States, it can't
help but affect the decision of the very able federal
court judge in Boston, Massachusetts, about whether to
allow Reg Howe's lawsuit to go forward. That is just
the way it is in many cases such as this.

If the judge allows the case to go to quot;discoveryquot; -- or
the pre-trial fact-finding process -- the defendants
will have to answer Howe's questions under oath. Those
answers to those questions will surely win the day.
That process alone will give us the truth we are
looking for. The gold price will then soar -- very
quickly. African economic despair will turn to economic
repair.

And there is a caveat. Because what was carried out was
so immoral, hypocritical, and deceptive by a tiny, but
powerful, faction of the U.S. Government, it is my
opinion that certain African countries should be
entitled to reparations.

Yes, reparations.

That is for the many gold-producing African governments
to decide at some time in the future. However, in
contemplating such a course of action, it is important
to remember that gold is a depleting resource. African
gold-producing countries cannot get the money back that
would have accrued to them from revenues received from
a free market gold price that should have been hundreds
of dollars higher, if not for the gold market
manipulation of the Clinton administration. Worse, as a
result of faltering economic growth, reputations of
various black political leaders have been tarnished,
unemployment has skyrocketed and infectious disease
problems are at crisis levels.

Recently, former President Clinton was visiting this
special country of South Africa. It struck me when I
read the following from the Mercury:

quot;Former U.S. President Bill Clinton said yesterday that
the South African government was not spending enough
money on medication for HIV/AIDS sufferers.

quot;Speaking to a small group of youths at a conference on
civil society in Sandton, he said the government could
slice the AIDS mortality rate in half within three
years if sufficient funds were channeled into
medication.quot;

This is unmitigated gall, an outrage and an affront to
the sick in South Africa. If not for the former
president's gold policy, there probably would have been
enough money to have already cut the mortality rate in
half.

Maybe as an eventual result of this summit meeting, the
HIV/AIDS mortality rate CAN be cut in half with
reparations sent to Africa courtesy of President Bill
Clinton and his former administration.

There is one other MAJOR benefit to asking the GATA
questions at this point. Because of the huge
supply/demand deficit, the amount of central bank gold
needed to hold the price down is increasing by more
than 100 tonnes every month. That means that the Gold
Cartel's gold problem is getting worse and worse -- by
the week.

The GATA camp has a hard time imagining what the Gold
cartel's end game is and how they are going to explain
it all in the future. One can be sure that the guilty
perpetrators are going to try and come up with some
phony pabulum type of excuse to talk their way out of
what they have done. That is just what they must not be
allowed to do.

Think of it like a chess match. If the attendees at the
summit ask the aforementioned questions and the press
reports on the questions being asked, King Gold Cartel
can be checkmated by us pawns and knights of this Round
Table because of the resulting publicity and focus on
the matter. If they then come out with some
nonsensical, gobblygook of an explanation in the
future, few will believe them. By asking the
appropriate and fair questions NOW, future gold
reparation claims will be strengthened.

It will also enhance the possibility that the gold
manipulation scheme ends earlier rather than later --
for all the reasons we have brought to your attention.

It is time to fight back South Africa and sub-Saharan
Africa, for what was rightfully yours in the first
place. We have offered you a plan. GATA hopes you run
with it. Allow the quot;enveloping horn,quot; the famous battle
tactic of the great African General Shaka, to win the
day again.

Reg Howe and his lawsuit in federal court are the point
of the buffalo horn. He has the gold cartel's
attention. The left flank of the horn is our effort to
mobilize the press and politicians. An unbiased press
can help us move on the gold cartel by just FACTUALLY
reporting on what was presented here today, while the
other summit attendees can go to various politicians in
an effort to obtain answers to the action plan
questions. All along it was GATA's intention for the
right flank of the horn to be mobilized gold producers.
We hope after what was presented today, attending gold
producers will be encouraged to speak out and also try
and get answers to the Action Plan questions.

Meanwhile, the Gold Anti-Trust Action Committee will be
on alert in the United States to help in anyway
possible. We are just a phone call or email away.

The quot;enveloping hornquot; is now in full battle formation.
By acting decisively together we can close the back end
of the quot;enveloping hornquot; on the gold cartel. These
financially and politically powerful institutions are
likely to be slightly bewildered. The truth will see
the light of day and we will win. So will all of sub-
Saharan Africa.

Siyabonga kakhulu!

Hambani kahle! (Go well.)

Ukuthula kube nani! (Peace be with you.)