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UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No, C06762953 Date: 05/16/2019 RELEASE IN PART B6| From: Baucus, Max (Beijing) Sent: Sun, 25 Jan 2015 07:35:23 +0000 To: Baucus, Max(Beiing), 86 Subject: Fw:BHR Partners From: Mit Datsopoulos Sent: Saturday, January 24, 2015 08:09 AM To: Baucus, Max (Beijing) e tim Subject: BHR Partners — (On Behalf of it Datsopoulos) Mr. Ambassador (Max) ''m attaching a letter directed to you from Devon Archer, Vice Chairman of BHR Partners, a recently ‘created and funded investment vehicle who is targeting investments in companies other than natural ‘resource related companies in the United States. This investment has been funded and is actively investing major sums in existing corporations. lve requested that Devon Archer prepare a letter directed to you and include recent news articles that provide documented information regarding the funding of their investment vehicle and the recent Investment of 900 milion dollars as part ofa group of major investors that have invested 17.5 billion dollars in the purchase of the retail unt of Sinopec. | was introduced to Devon by a longtime Missoula friend, Bevan Cooney, who | believe you also met in Missoula. 'm encouraged by Devon's commitment to participate in U.S. investments including projects in Montana. The purpose of the company seems to be consistent with your philasophy of cross country business investments and arrangements between China and the United States. | was reluctant to write to you about the possiblity of arranging a meeting so that Devon and members of his board could meet with you personally during their trip and board meeting in China. | believe this could be a major opportunity to facilitate significant involvement by Chinese investment in U.S, business enterprises. | look forward to discussing Bohai and their mission regarding investments in the US. Ifyou have the time, please give me a call. Thank you for reviewing the enclosures form Devon Archer and if there is anything | can do to assist, please contact me. With a Handshake, Milt Sarah Miles, Legal Assistant UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. 06762853 Date: 05/16/2019 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No, C06762969 Date: 05/16/2019 DM@L Daisopoulos, MacDonald & Lind, 201 W. Main Stoo, Suite 201 Missoula, MT'59002 Phone: 406.728.0840 | Fax 406.543.0134 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. CO6762969 Date: 05/16/2019 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No, CO6762976 Date: 05/16/2019 BHR neat pe ‘Chaoyang Ori Bing O00, China 20 January, 2015 [RELEASE IN PART BS) Dear Honorable Ambassador Baucus, Milton Datsopoulos suggested I reach out to you to arrange a meeting during my next trip to Beijing. ‘This tip will correspond with our first quarter board meeting and I would like to introduce you to our CEO, as well as to members of the Board of Directors from Harvest Global and Bank of China. Our fund is focused on both China outbound investing and opportunities created by China’s Stated Owned Entity reforms. Indeed during the board meeting we will be discussing our investment in the privatization of Sinopec Marketing Co,, Led. One of the fund’s Chinese constituents is Bohai Capital, which was established as China’s first RMB private equity platform and has significant shareholders from China’s financial institutions. The fund’s second Chinese constituent is Harvest Fund Management, one of China’s largest fund managers, which has established Shanghai Ample Financial Services as its altemative investment platform. ‘You might be interested in the attached articles about the fund and the Sinopec deal. Please let me know what 2 convenient date is for you between 26" January and 6* February 2015, and with whom to coordinate to arrange this meeting, Youts Sincerely, Devon Archer Vice Chairman 28 yg + EM Shang 28 Hong Kong EES New Yr UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. CO6762076 Date: 05/16/2019 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No, C06762992 Date: 05/16/2019 RELEASE IN FULL| WALL STREET JOURNAL ‘MARKETS Bohai, Harvest and U.S. Investment Firms Expand Target for Outbound Fund Yuan-Denominated Portion to Be Converted to Dollars Via Shanghai's Free- Trade Zone SHANGHAI—A consortium of foreign and Chinese private-equity fiemsis aiming to caise about $1.5 billion to invest abroad, with the yuan-denominated portion of the fund to be converted to US. dollars through Shanghai's free-trade zone, ‘The fund—launched by Chinese asset managers Bohai Industral Investment Fund Management Co, and Harvest Fund Management Co. alongside US. investment and advisory fies Rosemont Seneca Partners and Thomton Group LLC—started fundrsising in the second quarter, and has cased its target to $1.5 billion from an original $1 billion plan, @ spokesman at Bank of China Intemational Holdings Ltd, said. BOC is one of the largest stakeholders in Bohai, "The Bohai-Harvest fund is likely one of the biggest Sino-foreign collaborations in private equity to take advantage of the free-trade zone's benefits in converting yuan to dollaes that can then be invested in foreign companies. The funds ase casing a combination of yuan and US. dolla. The effort isthe latest ‘example private equity pushing boundaries in an acea that China hopes will help drive the country's economic transformation. Nosmally, China restricts free conversion of its cuctency. Bohai and its partners are expected to finish fundraising by the end of this yeas, sccording to BOCI's spokesman and Lindsay Weight, co-chief executive officer of Harvest Capital Management Co, the subsidiary under Harvest that will hold dicect stake in the joint fund, Both declined to comment on how much has been raised so far. Rosemont confirmed the expansion of the fund. Thomton didn't respond to requests for comment. Covering 29-square kilometers in Shanghai's eastem Pudong region, the free-trade zone was created last September as atest lab for China's economic reforms, including exchange-rate liberalization, Thousands of companies, ranging from intemational banks to technology firms and investinent managers, have registered to do business in the zone to benefit from the easing of Chinese financial and investment segulations. UNCLASSIFIED U.S. Department of Stato Caso No. F-2018-01904 Doc No, C06762992. Date: 05/16/2019 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. C06762992 Date: 05/16/2019 Chinese investors usually need approval from several authorities for foreign buyouts, a lengthy process that can make them less competitive abroad, But investing wa the fece-trade zone cuts down on that time, Any project in the zone valued at $300 millon orless qualifies fora simpler filing, as long a itis't considered a national secusity threst. Homegrown peivate-equity fim Hong Capital Ld. was the frst among its peect to benefit froma simplified administration approvals for outhound investmentsin Shanghai's free-tcade zone. Asan easly registeant, the firm has completed two deals through the zone, teaming up with Suning Commerce Group Co. to co-invest in Chinese video website PPTV in April and buying U.S. based production firm STX Filmworks Inc. in March, according to a Hony spokeswoman, who declined to provide further details. “The fundraising by Bohai follows the registration of management firm Bohai Harvest RST (Shanghai) Equity Investment Fund Management Co. in Shanghai's free-trade zone in December. The firm, beanded under the English acronym for the owners—BHR Partners —originally et out ta raise thaee billion yuan in the Chinese currency and $500 million in US. dollars, according, to its website, Bohai is China's oldest private-equity firm, having launched the countrys frst yuan-denominated fund in 2006. Harvest Fund Management is one of China's largest asset managers, with previous private equity ventures including with a jointly held fund investing in both domestic and overseas seal estat. Rosenont Seneca is a Washington, D. C-based investment and advisory fim sun by Hunter Biden, the son of US. Vice President Joe Biden, Thomton Group is a Boston-based cross-border investment advisory fiem. ‘The oint fand will focus on cross-border merger and acquisition opportunities, focused in four sectore—high-end manufactusing, financials, consumer, and enemgy and resources. Within the latte, the fand will focus on natural gas, according to Ms. Weight. Hunter Biden has experience in nabural gas, having joined the board of Ukrainian gxs producer Busisina Holdings Ltd. eadlier this yea. Busisma is controlled by a former top security and energy official for deposed President Viktor Yanukovych, ‘Bohai, Harvest, and Rosemont and Thomton as a pai each own 30% stake in the joint management firm, according to Ms, Wright. Write to Chao Deng at Chao, Dengi@:com UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. C06762992 Date: 05/16/2019 UNCLASSIFIED U.S, Department of State Case No. F-2018-01904 Doc No. C06762999 Date: 05/16/2019 REUTERS RELEASE IN FULL) UPDATE 1-Sinopec sells $17.5 bin stake in retail unit to investors Se Sep 11204 * China pushing to restructure state-owned units * Leading investors include Hacvest Fund Mgt, China Life Insucance, Tencent * RRJ Capital among forcign investors (Adds details of retail unit, investors) HONG KONG/BETJING, Sept 14 (Reuters) - Sinopec Cosp wil sell a 107.1 billion yuan. (617.5 billion) stake in its retail unit to a group of 25 Chinese and foreign investors, Asia's top oil refiner said in a statement on Sunday. ‘The sale, the country's biggest privatisation since president Xi Jinping came to power, comes as China's government pushes to restructure its state-owned entesprises by bringing in private capital and expertise. Leading investors on the deal to buy a combined 29.99 percent of Sinopec include one of China's biggest assct managers Harvest Fund Management Co Ltd taking 15 billion yuan with its subsidiacy Hacvest Capital Management. China Life Insurance and a consortium that includes People's Insurance Group of China Co Ltd and Tencent Holdings Ltd are each taking 10 billion yuan stakes. Other investors include Fosun Intecnational, China gas supplier ENN Energy Holdings Ltd and white goods maker Haier Electronics Group Co Ltd. Asia private equity firm RRJ Capital, founded by former Goldman Sachs and Hopu Investment Management dealmaker Richard Ong, is among foreign investors in the deal with a 3.6 billion yuan stake, Sinopec's marketing and distribution unit, which includes a wholesale business, has more than 30,000 petcol stations, over 23,000 convenience stores, as well as oil-product pipelines and storage facilites ‘The deal will boost the value of the low-margin macketing business, bolster the group's finances and reinforce investment in exploration and production. Sinopec’s chaicman, Fu Chengyu, has previously said the investors are expected to bring in expertise and ideas to improve non-fuel sales at its petrol stations. Unlike in Western markets, where non-fuel businesses - convenience stores and things like fast food or car washing - can account for more than half of a station's profits, more than 99 percent of Sinopec's cetal sales come feom peteol. In the past few months Sinopec has signed agreements with multiple Chinese companies to make mote use of its peteol stations and provide more services to consumers. UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. C08762999 Date: 05/16/2019 UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. C06762999 Date: 05/16/2019 Tn August the company signed a preliminary deal with internet giant Tencent to introduce digital commerce to the retail arm. (Reporting by Stephen Aldred in Hong Kong and Shea Yan and Benjamin Kang Lim in Beijing; Editing by Michael Usquhazt) UNCLASSIFIED U.S. Department of State Case No. F-2018-01904 Doc No. C06762999 Date: 05/16/2019