Compliance Officer (3) re Cernavoda - September 16, 2003

September 16, 2003

Mr. Fraser Reilly King

Halifax Initiative

153 Chapel Street, Suite 104

Ottawa ON KIN 1H5

Dear Mr. Reilly-King:

I would like to provide you with a status update as to your letter of complaint dated July 28, 2003, a letter of acceptance of which was mailed from my office on August 25, 2003.

Once a complaint is accepted, the next step in the compliance program process is a fact-finding exercise. The duration of this exercise will vary depending on a number of factors, including the allegations and the number of people to be interviewed.

Since accepting your letter of complaint, I have conducted research into this matter, reviewed documentation, and interviewed several key personnel at EDC. I have also taken advantage of every opportunity to illuminate the issues. For example, while at a conference in London, England the first week of September, I introduced myself to the co-signatory to your letter, Mr. Antonio Tricarico, Director, Campagna per la riforma della Banca Mondiale and brought back research publications.

These publications and the research I am conducting will assist me in the fact-finding exercise. As far as when this exercise will be completed, at this time I can only tell you that a key party at EDC is away from the office until early October and I will not be in a position to finalize this exercise until after we meet.

Should you have any questions or concerns, please do not hesitate to contact me.

Sincerely,

Alison C. Lawford; LL.B., LL.M.

Compliance Officer