881121-3a

11-26-23
Susan

MEETING TRANSCRIPT: G. C. HATONN

BUSINESS MEETING

00:01
[Oberli] November 21st 1988. Greetings Commander. 
Good evening. 
[other speaker] Good evening.
Would I lie to you? 
[other speaker] No. 
Hatonn, in Light.
[other speaker] I was hoping to have a chance to be with you tonight. Well, I knew that. Well, let’s hear it. Let's revel in our new intelligence. 
[other speaker] Yes. Well, I just want to again personally say thank you for being with me. 
You're most welcome. 
[other speaker] I could feel you and everything else. I couldn't decide. 
Well, I don't know about the everything else but I was there. 
[other speaker] You were there. So was the rest of my council and others. 
It gets crowded on the telephone. 
[other speaker] It was crowded. I was steaming up but in physical body. But I had a good talk with, as you are probably aware of, Elena and Otto, both Elena first, and I was just telling Allen and Rick about that call.
Let's put it on the tape while it's nice and fresh, as if I didn't know anything, and then when it is played back to Al and John etc. they will all be here and fresh in your mind. I have found it’s an excellent way to debrief and we can all hear the tone. 
[other speaker] Yes. 
So just pretend you are encountering us for the first time. 
[other speaker] I'll do it.
[other speaker] You are doing fine [?]  
[other speaker] So the call I had with Elena, which was first, we went over first of all her trip. She said she came back during the weekend. She caught a little cold and she went over that. And we had a little friendly chit-chat there about that. She said that she did talk to Otto and they had talked about the project. She was a little vague but I did get a little information so to speak that she had conversed about them and that she wanted to see more packages. And I did ask specifically about the three million and she wanted to know where the check was. Because they have been in business so long with so many people that haven't been able to pay their fees or say the checks in the mail. They're so used to that. They're just on edge for that and aware of those things. I told her obviously that it was ready now and we did have some bank transfer trouble and that kind of thing. 
Not nearly as many. They cannot possibly have had as many as have told us they can get us all the money we want. 
[other speaker] Well, he's been there 10 years so he's probably had his few. 
He probably has had a few. 
[other speaker] And he works with a lot of crap. 
So do we.
[other speaker] So I talked to her about that, told her the magnitude of some of the projects we have working here, went over that. She said that they would very definitely consider the 3 million. They would like to do it. They would like to see us take the first step and become a client. She represented it to me as though Otto would be calling his personal friends and associates to obtain that money. She also said that it would be done in a best efforts basis. I said basically how soon and she gave me lots of little answers for that. It could be now or it could be later. It could take a while and I didn't want to be a nebulous because she was. I said well if we got the package there and the money and the contract, I said how soon would it be before we could have funding. And about three times it always came back to where's the package, where's the money? But she also said that the money is available and sometimes it's easier to get than others. So she gave me a lot of reasons why it could be delayed. 
I'd like to hear them. I'd like these ones in this room to hear them.
There are legitimate reasons? 
[other speaker] Yes. She gave me the reasons of if an investor or a friend of Otto's had their money tied up in CDs, 30 days, 90 days, 60 days, and if we were in between the rollover times, that money would not be available until the rollover. She did not want to give a written commitment on the $3 million because they do not do up front fees normally. These are not really up front fees, well yes it is. It's an up front fee connected to the project and they're not known for that and they wouldn't have ever wanted to admit to that I wouldn't think. The other reasons mostly are availability of the money for any of the three million to be delayed. How soon type of a thing. I think that was about the only reasons that she gave, how fast he could get to them, how fast they could pull it out of wherever it is. Or I wanted to say, well, you know, sell your Mercedes, Rolls Royce, but I didn't. She probably would have fired you. 
[other speaker] No, probably. 
She would have laughed at you. 
[other speaker] She would have laughed. I think sometimes she hears about every fifth word of mine, and then other ones go over her head and she's thinking about what she wants to say. But I felt pretty positive about from her contact and I told her there was other packages here and that I had, I believe I told her, I know I told Otto that I had moved to this area to work on these PADD projects and this would be the key. I did tell her that we had funding from other sources but it would be in 89 for the long-term funding and that we wanted to open the floodgates and get going on that now. And that's why we wanted the $3 million. We needed to know as soon as we could. We couldn't necessarily wait 30, 60 or 90 days for someone to come up with the dollars. She understood that. She alluded to the face, I believe, that she would talk to or meet with Otto again on it. But the main thing would be is to have the $25,000 and the contract in their office as soon as we can get there. I told her that we would probably be able to federally express it or the next day mail it out tomorrow. I told that to Otto actually. 
[other speaker] OK When did Otto get on the line? 
[other speaker] I talked to, I called John here from Tehachapi and told him about my conversation with Elena. I told him that he was under some misunderstandings and so I went over the fact that the $25,000 check was for the $33 million funding transaction. The three million dollars is not attached to that in written form. It is a separate request for three million dollars to speed up the transaction so that we could have money now to work with to start the contracts with ABT.
Let me ask you, we have contract, am I correct, we have contract for both ABT and TeraBlock from them. 
[other speaker] That's correct. 
So we'll go with ABT first. 
[other speaker] Yes. 
Is that what I'm hearing? 
[other speaker] Yes. 
Very good. 
[other speaker] That way our contracts with ABT where we're getting our in from Florida can be put in place and we could secure the Asadorian building 
Yes.
[other speaker] And the building facilities and start production and equipment moving into place three weeks or a month ahead of time rather than waiting for Otto’s funding down lines.
Yes.
[other speaker] So the $25,000 in essence is helping us to get to $3 million in order for us to start things happening now and also pay other fees and other engineering and everything else.
[other speaker] Secure the property.
[other speaker] To secure the property. To start everything now it will open the process. 
Yes.
[other speaker] We have a window so we are not so pressed having a big amount of money coming in. We can set the corporations up and different things we need to do now with the three million. Just after I talked to John, I talked to, excuse me, Otto rang in on the line while I was on the line with John. So I finished the conversation with John and answered Otto's call. I had left a message. I wanted Otto to call me so I left a message with Jenny, the girl that I'm friends with at the front desk, to write a note saying a question is about a $125 million package, which is what we talked about this morning. 
Yes.
[other speaker] I wanted him to call me, so he did. So I started with that and I mentioned, I asked him, I told him I had a $25 million package, it was being finished up now and it would be a few weeks before we could have it out to him. And is a $25 million package too much at one time or should I... 125 million. What was I saying? 
Well, you said 25 but it has been 7 to 9, so either one. 
[other speaker] Yes, either one. But even that we've gone from 7 to 9 to 18 to 20, 33 to 50. 
It is the old camel trick isn't it? 
[other speaker] Yes. And without even answering, without even pausing he said that's not a problem any longer. 
I bet it's not. 
[other speaker] And so that pleased me and I said that's excellent.
So I didn't even tell him what the package was. He says, we won't have any problem funding that, is what he said. And then he realized what he said. He says, as long as everything is right in the package and it all fits and the numbers are correct, obviously, as long as it's a full package. I was pleased to hear that. 
I'm pleased too, quite frankly. Yes. I want to give them business. I believe Otto has integrity. I have watched for a long time. There is a great deal of money, as we have spoken of. He knows where he is going to place those packages. There is no public offering as such. But it is paperwork. A paper trail. Just as you ones must guard your trail, so must Otto. And you must protect him, and you can be pretty sure he will protect you. And once you are funding, you see he will at some point work with you as you get double funding. 
[other speaker] Yes.
This man will work with you. Gary may work with you even more readily because he can afford to give up the stock, any stock interest in it, for the right to use the money for a while. So there are many things that we can do that they can do and give us the use of extra funds and still be legal, handled it very properly. You do have this window in here, before Bush takes office, and before anything else can come down the pike, they're going to be transferring a lot of money. It was backed up against the election.
12:40 
[other speaker]When does Bush take office? 
In January.
[other speaker] Mid-January. 
[other speaker] Alright. 
So you have just this little window, it doesn't mean the window is going to slam shut. 
[other speaker] No, I was just calculating the amount of time. 
It is just that they are reveling now, they have been waiting. They have not been funding very much of anything, I'll tell you. I know that. They've been funding some. Panama's funding, there are many ones that are funding simply to keep their clients from going completely away. It's been a very, very hard, dry spell. And Otto didn't lie about it. 
[other speaker] No.
He said, they really don't want to run the risk until they find out what will happen. And this tells you so much about your world political situation. You see, the world hid the sigh of relief when Bush was re-elected, for all the wrong reasons, but it gives us breathing time and it gives them time to place more of their funds and this is what America needs. If you don't build up some productivity, this is the problem. You have become a service nation.
All money is going to debt you're not producing and even what you are producing is usually produced from imported structural things like steel. You would be surprised you even import lumber incredible deficit of balance of trade, that's neither here nor there. Yes, please, Rick.
[Rick] Did Otto comment on the three million? 
[other speaker] Yes, I haven't gotten there yet. 
[Rick] Tell me the answer. 
Just be patient, Rico. 
[other speaker] What I was at with this window, so to speak, I know that it won't slam shut and that I've asked that it wouldn't also, is that the calculation and the typing and the preparation of the 506D's as a paper document and also the certified financials that are necessary, I guess it would be forecasted financials in this case, I was just thinking of the amount of time necessary to prepare those, would hopefully only be a few weeks for each package. And then again we have, and I was thinking of the holidays and how much time we had.
That was why I was referring to that, Commander. So we might need some assistance for those that will be preparing the 506Ds. I think I can give you a name or so that I would be interested in using. And then we also have Jay. 
Well, let's have one that works with Otto. 
[other speaker] Well, I have one that's very familiar with Otto's packages and how he needs them. Barbara in his office is his in-house attorney, but she works with the outside corporate attorney, our corporate attorney, or the attorney we would hire to write the 506D into legal jargon from our business plan. And that would probably, I would think the man named Elliot has been asking for my business for quite some time for Otto’s packages. He's done over 50 some limited partnerships, I mean private placement partnerships, 506Ds, 501s. and we can do them at a much less reduced rate than a lot of them out there. 
Well, let's just not get fouled up with our corporation. The first thing you do is set up your corporation. 
[other speaker] Yes. I was just thinking of that. 
And we will make sure they understand exactly how all of this is going to work, believe it or not, they're going to be thrilled to death with it. This really protects Otto. He's dealing with some intelligent people and we're not going to disappoint him. 
[other speaker] Does Otto connect me with you, Commander, in his mind?
I'm not going to comment. He certainly doesn't want to handle that now. 
[other speaker] No. But I made it, pardon your French, damn clear that Tehachapi was where things were going to come from.
[other speaker] Okay. During my conversation with Otto, first of all we discussed the 125 million. That was fine. I asked him about the $50 million project still sitting on his desk and he says yes. He kind of alluded to the fact that it would be there until we made a decision on this. That's what I felt. 
[other speaker] Those capital bills. 
[other speaker] Capital bills. And I said, are you still evaluating that? He says yes, I think he said yes, they are attached or yes, they are one and the same. So then I just asked him about the three million, how that looked. He said well they are not a client yet. He had the data in front of him. He said the first time I called and said that their wire transfer, about the wire transfer, he said that was on the 14th. And he says, and then he said the next time you called was last week. He said the check was messed up again. And he said, so he knew exactly what the trail was. He read it to me, which I was in a way pleased because that way he knows. He knew he was been following it. He's aware of it. It's not like it's something on the back burner. And I said that this part, that it was all ready to go and it's ready here and it would be expressed or next day mailed to him. And I wanted to, on behalf of the group, I wanted to double check and hear it from his voice, mouth, that would he do that. And he says, once they're a client, I can work on it and I can do it from that point. And from what Elena said and what Otto said that I feel real good about, that the fact that that three million will come together very shortly. 
Well, let us not go off the edge. If for some reason he cannot get it, let us not suffer very much with it. Once we're a client, he knows the situation, then he'll be easier to deal with if he can't get it on in many ways. 
[other speaker] Yes. 
We need it, and he knows that all the rest will turn right around and the next series of checks will be on his desk. We keep sending them in. Now, by tomorrow he will, or the next day, he'll have another one. So, you're going to give him every opportunity. I don't know exactly what you're going to do about Panama. We'll see if he comes back around with three million dollars maybe. You may not ever want to do anything with Panama, but you needed that support. Please understand what I have done here. John came through when it really should not have been John to do that. I got a lot of input over the last two or three weeks. We made sure the proper messages went out. I very carefully noted not one response from any of the ones who could do something about it. I appreciate John and Eleanor stepping forward. That takes courage, especially to you ones still in your 30s for someone in their 60s to step forward because let us face it they stand to lose everything they have simply by the way business is usually done. That is not going to happen but it takes a lot of  holding your breath to break 60 some odd years of teachings and belief. Oberli and Dharma passed that some time ago, but it was more, well, what the heck do we have to lose? So they go drum up another 30,000 for John Jeffers, or you wouldn't even be in the ball game. And some came forth, but they put a real expensive price tag on it. This is another place you're going to be very indebted and compassionate and lovable toward Wally McPherson. He stepped forward without question. And on two occasions wrote checks to John Jeffers without batting an eye. And that would be honored. And there are others having personal problems about it. I don't want to go into it, either on this tape or because it is personal. But I certainly honor John and Eleanor for doing this. It makes it possible to open up the gates, as you say. And I know that it is a great relief for all of you. I wanted Otto to make a commitment to us.
[other speaker] Not dangle this fish over our face. I hear what he says, he's a good businessman, I want to know you’re earnest. Well, I want to know he’s earnest. And not giving us some big come on, because we're sending a lot of packages in there and pretty soon $25,000 adds up. But Otto is not like that. He does not want to lose the respect of those ones in Switzerland and Munich, because he has arrangements made. So it's going to be time delay on the basis of just simple waiting requirements. It may not be such with the biggest one, but I believe it would be even with the biggest one. There is almost a bottomless pit of money there. Needing, looking, searching for home. You see, you have a different set of circumstances with these unnumbered accounts also. You can't get interest on them as such. The banks in Switzerland have had a real problem trying to get money out of those accounts so that they can do business in the world market and they found a way and this is it and so they have a lot of money stacked up and it's no longer safe, you see so they're getting it with the blessings of the ones who own those unnumbered accounts but you still play the game. And you don't give them any reason whatsoever, ever, to doubt your willingness to protect them. And when it gets down to paperwork, you tell them that we're not interested in a bunch of financial statements that don't mean anything.
25:08
That this is a first class operation, it is going to be a world center, and we're using the best consultants there are to run these projects. And Mr. Parsons’ annual report should be enough along with their contract. And he would be able to see that $60,000 to Parsons ensures his success. He is a brilliant businessman. Never underestimate. He is a Bavarian German. He knows business and he did it the hard way. I'm excited for you too.
[other speaker] Thank you.
And I'm sorry to have put you through the last few days wondering. And then to call the meeting this morning was, I sensed it. It was a shocker to John. I knew he didn't quite understand. His money's safe. It's in my hands. He will get it back. 
[other speaker] He didn't understand that his $25,000 was going towards the process of the $33 million?
No, he thought it was going towards the $3 million. 
[other speaker] Yes. 
And one does not have anything to do with the other, and yet it has everything to do with the other. 
[other speaker] Yes. 
He has just purchased probably 200 million dollars you see. It will not be lost on Otto, he knows he's got all of his front fees and the legal fees and everything if he gets you 3 million. 
[other speaker] Absolutely.
So we're playing in the right ball game. We'll get out of the pea soup yet. Or into it. 
[other speaker] Or maybe we can share a bowl someday. 
That could be. It beats chili all to heck. 
[other speaker] Can you say something like that? 
I don't know how I will explain it, though. An intergalactic pea soup cook-off? 
[other speaker] We'll explain it for you. 
[other speaker] What do you do for propulsion? 
I don't know. Rely on our outdated methods I guess. 
[other speaker] Maybe we'll have to have some. 
Actually I think maybe it'll work as well. 
[group speakers] Probably. It's about the same. Uh-huh. 
What else while I'm here? 
[other speaker] We have a friend to ask you about. 
What's his name? 
[other speakers] We have a question about Michael Deacon too. Yes. We ought to inquire about Michael Deacon too. 
[other speaker]Yes. I would like to inquire about, I always hesitate to say names in this room, Michael Deacon. He's a gentleman I met a couple of years ago. I asked you about him in January, February when I was here. He is an international banking source. He has not responded too well yet. He has a number of our packages, ABT, TeraBlock, Capitol Hills, General Printing, and he has not responded on them. He says he wants more packages. He always wants to make money. His father knows Otto. He's in the banking circles. I believe he's being sponsored so to speak by money from an undisclosed source. He's in his 33-34 from Portland, Oregon. I wrote him a letter Friday with Rick. Rick and I wrote it and listed the projects that he had, the date that I wrote my cover letter, sent him a copy of my cover letters, asking him if he does... to respond. He's kind of a friend, but kind of not. I need to be on more of a monetary basis to him before I can speak more readily to him. He talks about spiritual things and other things mixed in with business. He knows he has come to the United States to help propel what he calls the Phoenix in the way of money, but I'm not sure how he thinks of that.
Where? To the United States from where? 
[other speaker] From Europe, England. England. His family has a banking background. I perceive him as being very, very intelligent in the inner workings of controlling both sides so to speak of a transaction so he could like that's the theory of bringing things into the United States is having goods and services from both sides.
He's an adept at letters of credit. He's the one that you said that possibly would be good to talk to John Jeffers. He told me about a 22% bond program that he has for bonds money similar to and I sent him a copy of the CD package that Mercer had prepared with John Jeffers. I sent him that and he said that's excellent. He said my bond process would beat that all to hell. I had a bad connection with him on the phone. I'm asking about him being a player. I will actually know by his response to the letter. I said either send me the packages back. I have funding for them. You said you wanted to play. If you want to do business with us, you need to respond and tell me what you want to do with each package or send them back to me. And he probably would have gotten that letter today. 
31:32