PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace

, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI Reviewed and edited by Cpl. A.T. Cowan 2004-02-12 BASI - Udhe Singh BASI (Dave) JOHNSON - Dwight JOHNSON

BASI: JOHNSON: BASI: JOHNSON: BASI: JOHNSON:

Hello? Hi Dave, it=s Dwight JOHNSON. Dwight, how y= doin=? Alright, how are you? I=m not too bad, how=d everything go today? Oh, not too bad, I tried to phone you earlier in the day and all I got was your answering machine with your daughter.

BASI: JOHNSON: BASI:

Oh, I=m sorry, Dw=.... That=s okay. ....what time did you call?

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: BASI: JOHNSON: BASI: JOHNSON: BASI: JOHNSON: BASI: JOHNSON: Uh, I was a little after noon. Was it uh, I=m s=, we musta been outside, my apologies. Oh, no, no, no, no worries. Uh, so.... Um... ....how did it go today with uh, Pat and uh... Matt ROSE? Yeah. Um, it, it kinda went in a way that I probably hadn=t really anticipated to be honest. BASI: JOHNSON: Went bad? Well, I dunno, and, and you tell me. is um, they=re really not happy. BASI: Uh-huh. Burlington Northern Um...

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

JOHNSON:

Um, and then, and they=re not happy with the way the process is being run. They=re di=, they=re not happy that, that CN is being allowed to sort of amend and modify and change their bid, and work on the negotiations with the, with the, the tax indemnities and....

BASI: JOHNSON:

Uh-huh. ....and we=re s=, and we=re somehow not able to play, and, and they know from their, from talking to customers that, that CN is talking to customers and, and so they=re, they=re not happy. So, what they wanna do....

BASI: JOHNSON:

Uh-huh. ....and it remains to be seen how this is gonna go, but what they wanna do is to write a letter right to the Premier.

BASI: JOHNSON: BASI:

I think that=s a great idea. Uh, well, depends on what this letter says. Yeah, obviously, yeah, yeah.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

JOHNSON:

Um, the, the tone of the letter as of today was, y=know, going to be, y=know, more I=ll say more kind of al=, almost, almost saber-rattlin=.

BASI: JOHNSON:

Yeah, so... A lot of, AWe=re not happy.@ Y=know, AWe=re

contemplating, y=know, doing all kinds of things.@ BASI: JOHNSON: BASI: Would they.... Um... ....would they, would they, constitute leg=, legal

action, Dwight or... JOHNSON: Um, let=s put it this way, i=i=if, if not it=d be just short of that, Dave. BASI: JOHNSON: Huh. ....I don=t know if they would be prepared to, to go the whole way, but they, they, they really feel that the process has been unfair. They really, th= they just uh, and see even BN is, is sorta the, the, I won=t say the And I....

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI victim, but are, are subject to CN=s heavy-handedness. BASI: JOHNSON: Well, they threatened >em. Um, so, they just feel like this is happening again, y=know, AWe=re getting, we=re getting screwed again.@ BASI: JOHNSON: Uh-huh. Uh, we=re just sitting here and taking it, we really need to be more aggressive and we really need to go to the Pre=, to the Premier and basically say, y=know, if, if you don=t make this completely transparent, y=know, one of the things that they might be inclined to do is to start asking for running rights and just really mucking this whole process up. BASI: I can=t, Dwight, I honest to God between me, you and I, I really can=t blame >em, Dwight. JOHNSON: BASI: Oh, I mean, (indecipherable). I mean I, you know how I feel, I can=t blame them at all, right?

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: No, no, I, I, I can=t either, I=m just, I=m just not sure I know that, that gets us anywhere to be honest with you, but um... BASI: JOHNSON: BASI: Well sometimes, y=know, the squeaky wheel gets the

grease, Dwight. Yeah, but these guys wanna be more than squeaky. I under=, no I understand, but, and I was also thinking about what we talked about yesterday. I think what we Okay? I should do is you should tell your guy, and I=ll tell mine, I=ll, I=ll tell him that you called me. JOHNSON:

Uh, well and, y=know, u=, take that however you want. talked and the rest, so.

mean I, I don=t have any difficulty knowing that we

BASI:

Huh, do you want, do you wanna do that? would ha=...

I mean d=, you

JOHNSON:

Yeah, yeah, I, I, I wanna get >em, y=know, as I said to Pat, my objective, y=know, it=s, and I said this to him sometime ago when he, when he phoned Gary in the first place, I said my objective is to get the two of you....

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI BASI: JOHNSON: BASI: JOHNSON: BASI: JOHNSON: Yeah. ....somewhere face to face on any day that ends in a y. Yeah. Y=know, anywhere, anyplace, anytime. Yeah. Because at some point in time it=s gotta be, y=know, kinda principle to principle here. BASI: JOHNSON: Yeah, true. We, we=ve got some many intermediaries, you got CIBC, the evaluation committee.... BASI: JOHNSON: BASI: JOHNSON: Yeah. ....the steering committee.... Yeah, I know. You=ve got cabinet. Um, so at some point in time,

y=know, if there=s any way humanly possible Dave to

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI get... BASI: I think it is possible, my only a=, the only assurance that I would need uh, from your end, right? Would be that, that no m=, if something happened, like let=s say BNS uh, rightfully so, just went off the deep end, right? Okay? Um, but that, y=know, that I would have your guys= assurance, your word, that this meeting would never become public. JOHNSON: BASI: JOHNSON: BASI: Oh, oh, absolutely not. Okay. I mean, it=s not in our interest to do that. No I, I know, I know, but I mean still, y=know, it=s, I think it=s, it=s good to put that on the table, obviously. JOHNSON: BASI: JOHNSON: No, no, I mean that=s fair. Yeah Absolutely fair.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

BASI:

Um, then you leave it to me Dwight um, I will uh, I will talk to my guy uh, it may take me a couple of days, >cause I=ll be in Toronto for a couple days, okay?

JOHNSON: BASI:

Okay. Uh, but, I give you the commitment that I=m gonna, I=m gonna, what I=m gonna say to him is that you called me, right? right? Um, I was in the o=, I=m gonna tell him that I was in the office today and that you called me today,

JOHNSON: BASI:

>Kay And that uh, y=know, you were calling basically to touch base with me to say that, y=know, ALook, Dave uh, y=know, with this, we=re hearing all these things and, y=know, we think you guys are straight shooters, but we=re quite frankly really, really frustrated and, and angry, right, with what=s goin= on.@ frustration, right? And you were just expressing your

JOHNSON:

Well, not only that I, I, and I, this is true, I=m calling to tell you that, y=know, BN is our partner, we

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI do more things with BN than we do with anyone. BASI: JOHNSON: Yeah. And, and, and BN is not one to sort of, y=know, go off, y=know, blazing guns at.... BASI: JOHNSON: BASI: JOHNSON: Yeah. ....someone. Yeah. And I=m, and I=m, I=m trying to, to in some ways keep them from doing that. BASI: No, I understand, I=m gonna tell >em that, that=s exactly what I=ll tell >em, okay? JOHNSON: BASI: JOHNSON: Y=know, for everyone=s interest.... Sure. ....and I=m just sorta con=, as I said to you, y=know, even yesterday.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI BASI: JOHNSON: Yeah. I=m, I=m having difficulty keeping the team together and this is sorta one more... BASI: JOHNSON: BASI: JOHNSON: BASI: Yeah. Y=know, one more brick in the wall. Yeah. ....to be more and more difficult to do that. It just seems to me though, y=know, that, that when they called Mark ROSE when the, when the Chair of CN called Mark ROSE and basically told him to stay out, stay out, right? JOHNSON: BASI: Yeah. That, you, you know, that was grounds for dis=, It, it gets....

dismissing CN from the process, you know that? JOHNSON: Oh there, there has to be lots and lots of those grounds.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI BASI: They were, they were at, at that point, there, that was, I know, I remember having this discussion, right? our, with our ser=, civil servants. that=s how serious that was. JOHNSON: But see that=s what, that=s what I don=t understand. There=s all these grounds to dismiss CN. BASI: JOHNSON: BASI: And I, and I, I quite frankly... And no one=s doing anything. Well I=m, and then I, from what I understand, and here=s, it gets even more bizarre. by CIBC, right? deny it. JOHNSON: BASI: JOHNSON: BASI: Of course. I mean, that=s... Of course. Dwight that, that just a f=, amazes me. When, when they were called Th=, they didn=t ADid you do this?@ that was grounds to dismiss CN, you know that. With That was, drou=, I mean,

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: Well, of course, and then they=re, they=re tellin=

shippers now that, AWhen we get BC Rail this is what we=re gonna to do.@ BASI: JOHNSON: BASI: JOHNSON: So, they=re bullying people again? Oh, absol=, oh, th=, they never stopped. Yeah. They, they never stopped. And what=s even, what=s even

worse than that and, y=know, i=, i=, if CN is selected as, as the buyer of this it, it absolutely won=t stop. BASI: JOHNSON: BASI: Well... We=ve only seen the beginning. It is a beginning and uh, history, history will repeat itself. That=s what I=m, that=s, that=s as far as I=m concerned Dwight, between you and I, right? JOHNSON: BASI: Yeah. I, I=m gonna talk to my guy then, you can tell your guy that you called me, right? Just say outta....

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

JOHNSON: BASI: JOHNSON: BASI:

Right. ....the blue. Yeah. Say you called me today and, and, and, y=know, we, c=, you called me at the office, right? So, we=re o=...

JOHNSON: BASI:

Yeah. And that uh, that you, we talked and this, this is why you called to tell, talk to me and that, and that, y=know, that you, you said to me, ALook, y=know, wh=, Pat and Gary need a face to face,@ right? And I will tell my guy, I will sit him down and right, in confidence, and say, ALook, here=s what=s goin= on, uh, y=know, these people are not talking in a, in a, in a way t= kind of, y=know, say that they=re leaving and never coming back.@ They=re saying, ALook, y=know, Pat and Gary, they could talk face to face and no one needs to know about it,@ right? Um, that=s, y=know, that would go a long way towards maybe getting some of these misunderstandings cleared up, right?

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

JOHNSON: BASI: JOHNSON:

A=and just understanding what=s going on. Yeah. Um, y=know, why is, why is everyone talking to CN and we=re not invited? stalking horse? Are we, are we simply being used as a

BASI: JOHNSON: BASI: JOHNSON:

Yeah, sure. Okay, fine, if that=s the case.... Yeah. ....y=know for, for Gary, we=re happy to sorta stay in there and....

BASI: JOHNSON:

Yeah. ....and help you close CN and put that money in the, in the, in the government=s pocket.

BASI:

Yeah.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: BASI: JOHNSON: BASI: Uh, but, y=know, for that.... Yeah. ....there has to be a quid pro quo somewhere. Well abso=, absolutely there has to be. stuff that w=, y=know, we can agree to. JOHNSON: BASI: JOHNSON: BASI: And that=s something that Pat and Gary can work at. Ab=.... I mean it=s... ....no absolutely, and I, I=m all, let me tell you Dwight, I=m all for that, just so y=know. JOHNSON: Uh... And, that=s

Well, and I, I think it, it, it=s long overdue at this stage so...

BASI:

Absolutely it is and the fact that you=ve stated very clearly that you guys have flexibility in, in a whole series of areas, right?

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: BASI: JOHNSON: Yeah, I, it doesn=t have to be rail and.... Yeah. ....quite frankly I, I think it would probably, probably in lots of ways be better if it wasn=t. BASI: JOHNSON: Yeah. >Cause no one would draw the, the direct connection necessarily. BASI: No, no, no that=s fine, and now leave this to me, gimme a couple of days please, right? JOHNSON: BASI: Yeah, that=s fine. And, and, and tell, talk to, y=know, so that=ll, if we could keep on our story about that, then we can deal with it. JOHNSON: Yeah, we talked today, and I called to tell you that the team is, is getting very shaky. BASI: Yeah.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI

JOHNSON:

There=s a, there=s a new development.

BN is extremely

un=, unhappy, wants to become very aggressive. BASI: JOHNSON: Yeah. Uh, don=t know that that=s all that productive to do that. BASI: JOHNSON: Yeah. I wanna make sure y=know that. Um, and, y=know, we hafta

find some way to sort of avert this disaster.... BASI: JOHNSON: BASI: Sure, that=s fine. ....that=s about to happen. Okay?

And, and, and just, just you, myself and Pat and my boss will know that this call occurred, no one else....

JOHNSON: BASI:

Yeah. ....right?

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI JOHNSON: BASI: JOHNSON: That=s it. That=s it.

Okay, that=s great, Dwight, thank you. Alright, and I=ll, I=ll just wait to hear from you in a couple of days?

BASI: JOHNSON: BASI:

Yes, just gimme a couple of days please. Okay. No problem.

Because I=m headin= off to Toronto tomorrow uh, but I=ll be talking to my guy.

JOHNSON: BASI: JOHNSON: BASI: JOHNSON: BASI:

Okay. Thank you Dwight. Well, travel safely. Okay, take care. Take care. Bye. Bye bye. Thank you.

Bye bye.

PROJECT "EVERYWHICHWAY" Telephone#250-658-0060 Date: Time: Session: Address: 2003-11-11 18:39:53 00972 5064 Cambria Wood Terrace, Victoria, B.C. BASI Residence

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IC Dwight JOHNSON to Dave BASI (END)