I-v. ?1 a; . acao, In -: w. . CONFIDENTIAL I - and Re po rting ?25 June 2010 INTRODUCED INTO MAINLAND PRC Plaintiff MARKEDF RIDENTIFICATION Sands Macao Client Con?dential 25 June 2010 Copy (1) of (3) SECURITY WARNING a, ll. is." a . A f, ?33111,:qu 1 Ma 5 :3 gran . - I gm" ff a; a ?23! a We and our employees, agents and whatsoever to any other party ?y segk infuse or reiy on the whole, or any r. part, of this report or to the partiggsti?ogimg whole or in part, for any othe?? cg; .53 This report is prepared on i?f?l?h?fiod?wade avaiiable up to the date of this report and we reserve the right to am. necessary, based on faptual'i?'i??mation that comes to our attention after that 1m Do Not Circulate Page 2 of 23 Confidential -- Report NOT to be introduced into mainland PRC CONFIDENTIAL IRR000705 Piaintiff Ex.1124_00002 Sands macao Client Con?dentiat 25 June 2010 Copy (1) of (3) a 4, '45 11;? 1- .L. . Characterisation of Sources 6 Inte?igence on Fernando Tam Pak Yuen 7' ?3 kwI-?ra ?is a PJkWuen i 3? Mainland Policy Affecting Gaming industry .. 15 Hong Kong and Macao ff" Related Departments ..15 Centraf Go vemment ngig?" ?Zia Gaming and the Economy ..16 Issues of Cal-rang? I I {3 gi-ibRC Government Relating to MacaolSa-nds i ..17 (tantra! Government?si-P "ggp?on of Sands "18 Sands as .9 fa? 3"Govemment Interests. .20 Sheldon {:sratemem" .22 - tor ..22 3 -. Do Not Circufate Page 3 of 23 Confidential - Report NOT to be introduced into mainland PRC CONFIDENTIAL moms Ptaintiff Ex.1124_00003 sends Macao Ciient Con?dential 25 June 2010 Copy (1) of (3) INTRODUCTION TO ASSIGNMENT Background gr} it? We understand that Sands Chine Limited (?Sands?) is m??mnhez? and very signi?cant financiai commitment in Macao. .s?iiu. We were informed that. in recent months, av??fgber of wonying trends have emerged, which although apparently unocnneote wigyt'affect the overall business climate in which Sends is operating It}: (is: 5% the?hecegs?ff; a . ?sag-{km i; Ez?fmn ?f in ii i: 9 \ilfe As a consequence of these issue motivation of Fernando (indigent Macao SAR, and of Prior to making soon a financial commitment in Macao, Sands, as a prudent and organisation, is keen to ensure that the local and national political and @vironment remains conducive to such a substantial investment?and else hours that it fully understands potentiat risks in order that these corn-b? 't?d?il?considered and mitigated. Do Not Circulate Page 4 of 23 Confidential Report NOT to be introduced into mainland PRC CON FIDENTIAL I These issues have included various new re Plaintiff Ex.1124_00004 Client Con?dential Copy (.1) of (3) Sands Macao 25 June 2010 Agreed Scone .o'f'Work making progress. Speci?cally, we were engaged to provide inteiligence on significant political or policy decisio? I might impact upon Sends? decision to proceed Wili'eigyesiment. 1. .. i This project included an investigation and likely motivation 25? of the Key Principals with regard to (anygay?? 3. 9 jet ?busreport, three months following ihe Ir:' inteiligence gleaned from 'v?iv jigglg?e?l??ouroes in Beijing, Hong Kong and Macao. s: 1.- z. This repori is highly con?d?ing?l and should not be reproduced or shared with ti} -v This repori?tigu - a? .l Do Not Circuiate Page 5 of 23 Confidentiai Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff 5:550 W. 1RR000708 Sands Macao Client-Con?dential 25. June 2010 Copy (1) of (3) LIVE SOURCE REPORTING Understanding Live Source Regarts directly engaged in gaming and therefore the tam-jggand descriptions that they use I may not exactly correspond with terms wmmonw it"! ?_he gaming industry; this ?5 g: sg?gmmg reguiattons etc. 0?1: .93?225 l3 ti {arm Y?s" 422? . .I l; Ext-9? t; @Th?i?g?t? gal. Kai-"f diagram Beijing, Macao and Hong 59139. requested that their identi?a??i'?mg? They are all assessed to have "at. s; to relevant information. . .34; {facterised as below: - 5 git,? mean Ingfui, reliable amt; Three separ?i?; Beijing; consultant, who has undertaken research in Macao on :5 Do Not Circulate Page 6 of 23 Con?dent? - Report NOT to be introduced into mainland PRC CONFIDENTIAL . Plaintiff if? ?3 i} Sands Macao Ghent Con?dential 25 June 2010 COPY (1) 0f behalf'of the maintand government: Intelligence on Fernando Chui Sai 0n Fr - 319?. Pa. '3 1 m, All key sources of information were asked to Cort-r?ent on the background and i in Pak Yuen with speci?c 57'! . I emphasis on their poiitioa! ailegiances; Ieuel oi interest and also 61?} 3. .h ?3 .31.. . . . I (4%?er speor?c Views or Issues as to mainland and Macao poiicy towa emf: I which might impact Sands. ?s Ega?m 55?" ?s I 5:3 f??t r: us? a {is i1 33-! was ., 4 Fernando Chui Sai On Chief Execurefi??ashs? .- 3?2? Ar} sources we spoke to werg?i? $13 I Sistem as to Fernando Sal On's (?Fernando?) backgrougd angtf'p'?iihofa pedigree. The foiiowmg is a short consensus or of multiple source reps?: is Famiiy Background Fernando, born on the mamtand; this despite huge wealth and his former Macao gaming scene. 333?:- 1?3 Do Not Circuiate Page 7 of 23 Confidential Report NOT to be introduced into mainland PRC CONFIDENTIAL IRROOW Piaintiff Sands Macao Client Con?dential! 25 June 2010 Copy (1). of (3) Fernando is reported to have studied in the US. and to have earned degrees from US. universities, before returning to Macao in the early 1 is: In 1999, following the Macao handover, {remade wag? Secretary of Affairs and Culture. thgi?fam?gg .?rstmoeyg eeg ,En citiesw? ceseh ??es is": li 5&voive not a o?oonstr bUsi o?F?err-f hdo?s?grandfatherp?u: tau error-=2 I back in them"1 century. 12"; Our sources report that Gnu; I we a ?a star '51 he" alth no 9.3 ?end became a signi?cant force in the Macao construction industry. Chamber Chui Tak Kei played key ?piilers? of Macao businesskey role A egg long time supporter of the Chinese Communist movement; this Mia: under Portuguese sovereignty. He forged close ties to the by making donations and by cooperating in various activities. In ofthe family?s poiiticai loyalty, the Communist Party invited Chui Tai Kei Do Not Circuiate Page 8 of 23 Confidentiai - Regort NOT to be introduced into PRC CONFIDENTIAL Plaintiff issues, as to ggong KonglMaoeo. Our sou; ?pun.- "l Ciient Con?dential cow (1) of (3) Sands Macao 25 June 2010 to assist in the drafting of the Macao Basic Law. They (of?ciats) are v.7 - 33;. arranged for Chui Sai Cheong (page) (Fernan'do?e elder brother) Pong (Fernando?s cousin) to be members of the Ma?a?? . ?v Assembly. Our sources report that. Fernando?s wife Winnie Chui~F "at Fu niece of Henry Fok Ying Tong (Egg?) ("Henry Fox?), whose relationship with the PRC government is One of our sources noted that Henry Fol: was {it-3'3. Hong KongIMacao tycoons; this due to his Party. PRC leaders frequently sought gogon important policy?related .i It; Fernando's subsequent elevation to tote. . - .e 3:5 Henry Fok's strong reoommegdg supported by at: friend. Reputation Enquiries with mainland sources, knowledgeable about Fernando, provided as to his personality and general reputation. They as being. down-to-earth, visionary. modest and easygoing. He a poiished demeanour and has a solid track record. He is personality and to have demonstrated an ability to carry on {Ej?fg?oog?i?t??im?ons with various and disparate parties. 3e ran-3 .t Do Not Circulate Page 9 of 23 Con?dential - Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff ??tat it was Hang 5% st an? r3.? 3 ?3 ?edema no wooded?) it 1RR000712 Client COn?dential Copy. (1) 0t (3). Sands Macao 25 June 2010 .v I His "blueblood? Communist family background, coupled with an 3:157: 15 Mainland Government Due Diligence into Fernando Our mainland sources have reported that the Central departments) had undertaken a most rigorous this before making the final decision as to for the CE. post. The purpose of this exercise was to identify any wealgqewss?nivhich might compromise his ability to function or his loyalty tothe Party. {if ?eoneii?g's Wagingivy,- mi" 5' '22? 6?1. ?raised ij? toga! In o? waver gtm?and limbo ac?o?sed?mrm?of ~12 "a .- - 4: ii?. . . . issues) and to facrlitate busmess velo?gt??' deals involving members of his to when he was the Secretary of Social Affairs and Culture. The internal view of these aliegations is that they are ?minor that such criticisms will have tittle or no impact on his image operate in Macao. in tact, sources much arties more actively involved in these allegations closer to the issue opine the; were in fact, Fernando's brothe??hui Sal Gheong and his cousin Ghui Sai Pong. As a derogatory obedience to the Party was assessed as being very high. have failed to locate any information to suggest that our" - . immediate family currently have any direct Involvement in the Macao too?silli?ess. Do Not Circulate Page 10 of 23 Confidential Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff Ex.1124__00010 ii 2 vi. a it?: K): 5RR000713 Client Con?dential Copy (1) of (3) Sande Macao 25 June 2010 The PRC Government?s Perception of Fernando?ie Performance protecting the city?s heritage and cultural/historical relics; this 153%? Our PRC sources report that they believe, Fernandod?i rather satisfactory performance; this during his to re as Social Affairs and Culture in the Macao SAR. Senior PRC leade Ere well informed as to some of his perceived signi?cant achievements. They {that he was in?uential in the implementation of a ?fteen year, "free school? for Macao residents. Additionaily he is credited with the su es!" I (Car 9. . at? outbreaks. Macao?s successful accreditation? )5 {65?nch; tow.? f} I 6 i 5% gag" I :23} maxi-EN Ark? Em.? Fm Keg} Fernando was thus viewed by ership as being the best candidate for 3% ?2 s? emit-?owe They viewed his membership of an the Chief Executive?s position pa in?uential Communist Party . refationshin with admin . . . personality as uniquely qu?e Fernando is not seen as being-as active or extrovert as his predecessor, who has been somewh'at??h??ti?v?areiai. He is perceived to be much more likely to ?tow the mainland line?f?g?ti? ooliaborate with his mainland counterparts. I 1 gr opined that the PRC does not need a strong ieader in Macao were oynicelly viewed as being actually operated on a. ?one country unlike the politically problematic Hong Kong. Do Not Circuiete Page 11 of 23 Confidential Report NOT to he introduced into mainline PRC CONFIDENTIAL Plaintiff Sands Macao Client Con?dentiai 25 June 2010 (1) 0H3) ?s We were informed that PRC leaders are currently satis?ed with" performance and with his administrative skilts; this despite the recent I 21;: protests, the territory?s distressed economy and other problematioal at Fernando?s brief is to maintain the status quo, preserve sociaistathat no challenge to the Communist Party 5 authomy .5 ml km I i Social 8; Government Connections Fernando is on good terms with a wide crossgf?on of dignitaries in Macao and Hong Kong, including Edmund He who rep a stone personal With Fernando; this since that View?yo?hg. ?tters? News!? 76' . ?m it 3* an? (at. mils Egg-R?onsiaipe 5 See ggagt cl ?a 1" Rm (?m1 i V: 1:51- i limes semiotics! feudedhni-ie?hty sited-ah ~?t?t'is gsso?oie a b: . Fok, Fernando's sponsor and bespite this stance, the source states that Stanley Ho voiced his political?is Fernando?s nomination to CE. 1 1? '2 Fernando is also Eiiarious mainland ?prinoeiings?. who have of these individuals has a close relationship business interests in the" a with a senior Party of?ciai. to President Hu Jintao. These princelings areFem?a?n?dd?to project a posmve Image in Beijing. certain extent, used at China Jia is said to be the most powerful remaining associate Eras of forng hunt Jiang Zemin (who retains a considerable power base). s, ,n Do Not Circuiate Page 12 of 23 Confidential - @031 NOT to be Introduced into mainland PRC CONFIDENTIAL inn000715 Plaintiff Ex.1 124H00012 $1 a i . fiance. Egilo?ing?hisahtg?er ed Client Con?dential Copy (1) of (3) Sands Macao 25 June 2010 earthquake site in 2003. They are reported to maintain regutar coma time. in summary, Fernando is in a very strong position, both politi locatiy in Macao. Currently, it is most unlikely that any formof s? made against him would stick. He is therefore in a \f dealing with foreigri business interests. such as Sands. 1" r' Cid": 3.3a?: Francis Tam Pair Yuen a? Secretary of Economy" Finance 3 . I Our mainland sources report that FranEt?l', sift?! P3335 lien (?Friends?) W35 ??r?taer of a, salt. cal Ma . . . 9?21?93 if: Ff :3 an: J?y the}?! gee-to gdem, - it Background hora. it Me sizeelecee teem - It?s so are edit-i: utnea?tstrita in the 19705 to secret so the taught-e. ?rthese :nciuded various interests in commerce, the garment industry. industry and property. . if" Francis was ?rst appo?igted and Finance of the Macao (SAR) in August 1998. He is c?rfegglg?seryipg- in this capacity. gag: attaduring 2002, he played a pivotal rote in ending Well placed sources reportert Stanley Ho's four de'cgge?long gaming monopon in Macao. q} I A: n; . Our sourcesx?sgg lot less information on Francis? background but were able to family had the appropriate Communist Party's connections; es Erot?h?inent as Fernando?s. His membership of the Preparatory 5? . go? Macao SAR and the China Oversees Friendship Association, commas; . ?a albeit i I: . I was given as ewdence of the above. Do Not Circuiate Page 13 of 23 Con?dential Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff C. a. a: V. I) . ERR000716 Client Con?dentiai Sands Macao Copy (1) of (3) 25 June 2010 i. All sources interviewed provided complimentary ?fts Diji?, describing him as shrewd, capable, widely foamed an, with. He has a Page 14 of 23 Do Not Circulate Con?dentiz?: Report NOT to be introduced into mainland PRC CONFIDENTIAL Piaintiff IRR000717 Sands Macao Client Con?dential 25 June 20-10 Copy (1) of (3) Our enquiries with key PRC sources failed to locate any information to 4 . we 355?} I al: I I Hong Kong and Macao Affairs Office and Related oe?g . montage '3 ?1 The Hong Kong Macao Affairs Of?ce (HKMAQME af?liated-?more State Council and is the foremost PRC regulatory body oversee matters relating to Macao and Hong Kong. . The Ministry of Foreign Affairs also .o especiain interested in US. related matters a i ah FA "tea ,atMacao, the HKMAO has in effeo. the authority of the Macao i We 93*: 3 . . . . SAR government, which has bee??'?chg?mom receptive to direct Instructions from Beijing than its Hong Kong the ?one country two systems? concept. In addition to its riq the various local Macao ntegencios. the Central Government also collects Intelligence from multiple include: the Central Liaison Of?ce (Zhong Lian Ben). the Xi; News Agency, state investigators from state-run think tanks (the Chinese A lfr?ocial Science, the State Council Research Development Centre companiee??t 'rflend executiveslprofessicnais working at PRC-{Untied H: r" wnether agency is also active in this respect. in": oEi'the?i erff?rtments above are required to deliver regular situation reports to of?oit?iiei?who in turn report selected news and intelligence to senior State W?ooncil Thereafter mainland leaders map out signi?cant policy amendments r1 internal discussions. attended by bureaucrats from the state-organs above. Do Not Ciroulete Page 15 of 23 Con?dentiej Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff Sands Macao Client Con?dential 25 June 201.0 Copy (1) of (3) Central Government Polio Relating to Gaming and the Economy so: $24313. bay in Macao. Current PRC strategy is to cause the Macao ew%omy to ersi?ed rather than it's almost total dependence on gaming. The 3%"restrained growth? (slows) has been repeatedly used by of?cials and other ?eggs spoke to in ihis respect. Central Government "think tanks" are of the vie gaming industiy (since 2002), in fact runs somewhat coo?'gq Iongnterm development . . . so. objectives. The concept of restrained -, i3" as?? mi ?ll 3,1 ?sts? o. E: cornersto?e of Macao po toy. Sources report that the curren- and thus diminislg?i'if?ii?: 1K industry, was ?rst dra??il?in n3 {jailer amended in 2008. a . Our sources suggest thet?ifg gm of a recent of?cial document, the ?Planning Guidance for Reform Dave?s-3" dish: for the Pearl River Delta Area" lath. mega?3020)) and announced in 2005, that the Central PRC l? . . . Government, ?Lime, pledged to tum Macao into a regional tourism. cultural, gaming engiggx?l?iliohoentre. None of the sources we contacted have suggested that will be subject to any substantial amendment in the near fears-egg? that the policy was again reviewed and thoroughly examined in Mainland officials reportedly held various internal gatherings and meetings is. '1 Do Not Circulate Page 16 of 23 Confidential - Report NOT to he introduced into mainland PRC CONFIDENTIAL IRR000719 Plaintiff a: in. t3} i all mile a Sands Macao Client Con?dential 25 June 2010 Copy (1) of (3) to discuss and review the wording and key contents of the policy a considerable effort. the ?nal result did not lead to any major 3 amendments were reportedly made. as to the detailed planning, dew other particulars for the development of a nearby island, Hengqig? be placed under "the Macao SAR. Again the of?cials involved? that Macao should continue to pursue a ?moderatel'fs?ffi?rgisi? during'the work up to the 12?? FiveYear Plan (2011-20? Issues of Current Concern to the PRC Go Macao/Sends t: ?ggd "r Our enquiries have uncovered a nsgviaibh are impacting current .- 4'3: 539156:} Emu east SA ?3 ovger?tg?pelifdekriege (it? Etrill can: at on tax revenue from ga ming Egg-zghink tank report, drafted by fellows of ?i?laimed that tax revenue from the gaming - Sources report that a China Academy of industry will, revenue impressed by this is report. a The Macao??ggvemmr??lhs shortly to retain consultants to consider methods to they perceive to he owed by various gaming operatms. ?5 .e 'Q?oing as to how far to pursue this goal and as to which tit-?eouroes reported that PRC of?cials were was. exte?rggl consultants to retain. Sources suggest that whilst this might not aimed at them directly. some billion is annually gambled aWav hv sewmg Chinese goveinment of?cials visiting Macao. Do Not Circuiate Page 1? of 23 Con?dential Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff EX.1124M00017 Sands Macao Client Con?dential 25 June 2010 Copy (1) of (3) ?if-4?93; 73 in This source stated that this concern was one of the key factors magma Central Government's tightening of its visa poiiey for mainland >3 tightened in 2009. sautees suggest that measures to limit the tables in Macao were ?rst muted in Beijing; ii: that this move was not publically announce fn Mace-'ieh 2010. when Fernando made his ?rst policy address); as measures to limit the annual ngih of gaming tables to 10%, capping the iota! number of Macao gaming tables to 5,500 over the neg-tn fare. Elfin gaming 2%009 (we note (a as. we E212 . seesaw a - qw- a 57h 9223?? Esme?fantam,? an?. poke to a wde Variety owtedgg {a a so miss in this respe i. ere-is .. unfortunateiy a prevailing ?consp'mjdi': iamOHQst mainiand think tanks and guru i :5 -. at :1sz? :53} fansion of "American" gaming companies in Macao, particuiady Sands-?fgvf?? expansion). Many of ?geroeived Sands? expansion plans as being the prelude to even iurtne and intrusion in Macao". aimed that the year 2005 marked a turning point in the Central of Sands. The source states that. during this year, Sands Do Not Circulate Page 18 of 2-3 Confidential - Report NOT to be introduced into mainland PRC CONFIDENTIAL Plaintiff Ex.?l 124330018 Sands Macao Client Con?dential 25-June 2010 COPY (1) 0H3) caused considerable disquiet within the HKMAO and other govern? largely because the necest approvals had not yet been government. The. Centrai Government had initialiy been positive 5 investment but subsequently received numerous gpge?tive'o ?aijand objections from mainiand agencies and from locat gaming?gg?rators; speci?cally Stanley Ho during .2005. Thinktanks and research groups antigen that Sands? excessive growth in Macao would likely cause social instability an development. Eriorte senesgotgv eg" titre g; a @35er ran 3139,87 Tm tori ii. is g??i ?net - - 'th?e ?s?itu tioni edit; err evr?avg Were info edxtnatva e9. stilt gratefut for what they appareri' in securing the 2008 Oiympiogig??i intitfie?ntiei individuals were apparently, initially of the View. that. Opportunity was an appropriate way to return Sands? (very conefaergpie) However, the former Presiggnt??diang Zemin?s "pro-Sands? position was reporteon never fuity other PRC organs involved in overseeing Macao. In 2005, ?au pent administratioo of President Hu Jintao, then just ?nding its feet, towards Sands and US. gaming interests. Concerned with social 3? gtzk'ssuesf?he mantra of Ho Jintao's administration), it reportedly took the rapid expansion seriously. 1.11% Do Not Circuiate Page 19 of 23 Confidential Report NOT to be introduced into mainland PRC CONFIDENTIAL Piaintiff Ex.1124__00019 Client Con?dential Sands Macao Copy 1) of (3) 25 June 2010 Hu Jintao. 3m The new Central Government never Issued 3 speci?c pelioxrai ., (future) developments, but the overail climate had now The Ha Jinteo government had many other priorities and its $5Eands oouid, at best, he described as "ambivalent". Other Peg; of?ce? '1 departments, quietly changed their posture Sands in. the face of these strong internal objections. ts Another reliabte source reported the "middleman" ?0 PRC governmenti?e This Beijing source believes ?t?ffje . d? et- (3.3, do, to sender? is e1 tit ?re?ghth the let 49963: Ac ordrn?g?tig??tf Sends, ?owe?ehw?repo?e ty h. {Him}: . . . . . failed to pay a previousty agreed this tilwduai. Furious With snub. this rh?n'? middlemen began activeiy lobb i ainstgands after 2004. 319:? Sands as a ?Frg?f?? Government interests If.? Beijing-based set 5393 st?te that. during 2007, the U.S. government asked for the . I "nigtpermission to setup a us. consulate in Macao. This proposal 'gt?m by the Chinese side, on the basis that the us. already had two "?gt?eCilities in Guangzhou and Hong Kong. They viewed a third one 3? . tin 'M??geege _.__bezng both redundant and unnecessary. There was, Within Chinese egg?" Egre'?ti??ircies. a suspicion that the US. wouid become more involved in local -.p'olitics if it were granted a diplomatic presence in the BAR. Do Not Circulate Page 20 of 23 Confidential! - Report NOT to he introduced into mgigland PRC CONFIDENTIAL Ptaintiff IRR000723 Client Con?dential Copy (1) of (3) Sands Macao 25 June 2010 Separately, another source reported that, following the rist attacks in the us, the us. Government had signi?cantlg; Chinese counterparts to revamp Macao's banking combating international money-laundering operations. requests as being akin to submission to governmen??g? sovereign interests and enuatly perceived this as?gbriigikcuse fort'he LLS. to iegitimise their "unwarranted intervention" into Macao's locageirs. Another source reported that the concerned by the apparent love! of detaiiy?n'?agf I eta 2005 US. govmnment mygm? {ingots ttiion gig" Etta. lot he 46(6:355:'i?ttei A "ta affair which ?acr titties ct "{litcal' rits. Of?cers 5 Ministry of Foreign Affairs and '95? ment department were apparently "streaked" and ?stunned? by the :e't and detail in the US. government to support Sendsisther. A has reported that central Chinese government of?ciais ?rmly I has permitted agents to operate from within its facilities. rentty "monitor mainland govern ment of?cials? who gamble in the source also reported that severai PRC government bodies have evidence? of agents", operating from Sands, "luring" and entrepping Do Not Circulate Page 21 of 23 Confidential Re_oort NOT to he introduced into mainland PRC CONFIDENTIAL Plaintiff EX.1 124m00021 Sands Macao Client Con?dential 25 June 2010 Copy (1) of (3) mainland government of?cials, involved in gaming, to force them to wows}; . am?: U.S. government interests. They state the ?numerous? accounts of mainland of?ciated - - ?customers?, being bugged. had been reported to various?PRq. go? In Sheldon Adelson?s ?Statement? made in public, that ?the expansioalgg?fg??i??" La.) hog-? development course and Will elevate These remarks (whether or not perceived by HKMAO officials an,? or ('53 a Sign of a growing and (to the PRC government parties involvedgg?iigttall I ?ceptable ambition; this to compete with the PRC ecao. Mr. Pltdelson?s apparent remarks were subsequently and directly ??qi??e?t?ing a number of internal conctaves and meetings. This ?incident? is?fe?liited to have made him "infamous" amengst some mainland of?cials and [it may also contribute to the reluctance made or intended) have been Fernando and amt-ail?" 'S?meet with him] Quring antral Government solicited the opinion of Stanley Ho and his the activities of Sands and the other US. casino operators. Our that, following the change of sovereignty. the ?Ho Group" have sought it. political in?uence and relationships with the central Chinese 4. Do Not Circulate Page 22 of 23 Con?dential Regan NOT to be introduced into mainiand PRC CONFIDENTIAL Plaintiff IRR000725 I Sands Macao cum Canndenua' 25 June 2010 Ccpunwa) I I I Du No! clrcume Page 23 0! 23 Confidennal -- new: NOT xo g2 inrvoducad into mainland pm: CONFIDENTIAL EX 1124700023