Day 077 - 25 Jan 95 - Page 72


     
     1
     2   Q.   Is that right?  Had you been trying for four years?
     3        A.  Yes, for four years we had been working to get balance
     4        sheet beef.
     5
     6   Q.   The second paragraph: "However, there is one particular
     7        snag which I must clarify with you.  You expressly asked
     8        that we should not handle Brazilian beef and I promised you
     9        that I would ask for Australian or New Zealand beef and I
    10        now find that we have been allocated Brazilian beef.
    11        I have discussed this with our agent, Weddel & Co., and the
    12        reasons we have been allocated Brazilian beef is as
    13        follows: (1) Australian beef at the moment is being sold to
    14        the North American and Japanese markets, and its cost is
    15        approximately 94p per pound.  (2) The Brazilian beef is 69p
    16        per pound compared with the current British market price of
    17        79p to 80p per pound. Indeed, if Weddel deliver this
    18        ex-ship direct to the Plant the price could drop by a
    19        further 3p per pound."  Over the page, page 11: "What is
    20        important, however, is that the Brazilian beef is
    21        slaughtered and deboned in Weddel's own plant in Brazil
    22        under permanent veterinary supervision, and obviously the
    23        plant has full EEC status and approval."
    24
    25        Then you repeat what Weddel has told you about sailing too
    26        close to the wind in view of the date of the licence
    27        expiry.  You are asking him to accept this small quantity
    28        of some 24 tonnes of Brazilian beef.  At the end of the
    29        next paragraph, last sentence, you say: "This beef will be
    30        perfect forequarter meat, killed and boned under British
    31        veterinary supervision in a Vesty works in Brazil. So
    32        I hope I have your understanding on this to proceed.
    33        I have mentioned this matter to Paul Preston."  Had you
    34        mentioned it to Paul Preston?
    35        A.  Yes.
    36
    37   Q.   The next page 12, 17th May 1983, you write to the Managing
    38        Director of Weddel.  Do you see that?
    39        A.  Yes.
    40
    41   Q.   "Dear Peter, Brazilian Beef, I confirm the gist of our
    42        telephone conversation a few moments ago and also enclose a
    43        copy of a letter in confidence which I have written to Bob
    44        Rhea, Managing Director of McDonald's UK on the subject of
    45        Brazilian beef."
    46
    47        Skip the next paragraph, please.  The one after that: "You
    48        will read my letter to Bob Rhea that I virtually begged him
    49        after so much trouble to be able to use Brazilian beef in
    50        McDonald's manufacture.  I have just this morning received 
    51        a telephone call from Bob Rhea and I now know the political 
    52        reason for the instruction."  This is 17th May.  Were you 
    53        conscious of the political reason for the instruction
    54        before 17th May, do you think?
    55        A.  No.
    56
    57   Q.   "I hasten to add on his responsibility" that is Bob Rhea's
    58        responsibility "he has given me permission to use Brazilian
    59        beef."  Is that true or false?
    60        A.  True.

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