Winning in Business in Canada: More Tripping Along the Yellow Brick Road

I have noted a great degree of cross-pollination between educational institutions, honourary degrees, other awards, political donations, civic celebrations, networks in Canada which have gone global, powerful figures in our government, what appear to be political favours and great success in business. See what you think.

On a sunny spring day, this is lengthy and possibly not worth reading. I simply don't know. It intrigued me.




China, Canada, Networks & Connections, Harmony Airways, Donations to PM, Awards Received & More

For an airline begun such a short time ago, in the face of extremely difficult times for the air industry, David TK Ho's Harmony Airlines' rise has been meteoric. Of course, it helps to have studied in Canada years ago, to be very wealthy, and . . . .

2002

Mar. 12, 2002, TK Ho, immigrant from Hong Kong and owner of David T.K. Ho Enterprises, started Harmony Air with no planes or pilots at that point; he did bring money.


2005

Last month WestJet was reported (National Post) to be asking the Canadian government to help protect Canadian airlines, presumably from foreign competition; fortunately for Mr. Ho, he is now a Canadian citizen or has landed immigrant status.

Harmony One Step Closer to Introducing Service to China

Vancouver, BC April 19, 2005: Vancouver-based Harmony Airways is applauding the conclusion of China and Canada's new bilateral air agreement and moving forward with plans to introduce daily passenger service to China.

Harmony Airways has applied to Transport Canada for designation to fly to China. Once designation is granted, the carrier could start daily service as early as summer 2006. In the meantime, Harmony is working on cooperative agreements with Chinese based carriers to introduce service on a code shared basis. Code sharing allows passengers to conveniently connect from Harmony to other partner carriers using one ticket and a single, through fare. [. . . . ]

Using credit cards? Think about that.




How was this achieved?

In another news release from the Harmony Airways website: TK Ho sponsors "HSBC Celebration of Light" -- Hong Kong and Shanghai Bank Vancouver, BC, July 29, 2004

Harmony Airways, formally HMY Airways [donor to Paul Martin's campaign], is pleased to sponsor the annual HSBC Celebration of Light. As Vancouver's own airline, we believe in supporting the communities we serve. We are honored to be apart of this annual event, an event that brings enjoyment and pleasure to people throughout the Greater Vancouver area. [. . . . ]

Note: "pleased to sponsor . . . . we believe in supporting the communities we serve". Which communities? There appear to be connections in real estate in Canada and in Hong Kong and a few other places. Ho's "in" with China and the Hong Kong and Shanghai Bank are useful, as well. Scroll down for more on HSBC of the above. Search: "HSBC Celebration of Light". Note the networks of involved citizens.



2003 September

Another news release on the Harmony Airlines website, as well, mentions another connection for air business success -- perhaps useful also with connections between Canada and China.

Vancouver, BC Sep 25, 2003
Harmony Airways returns from meetings with Chinese Civil Aviation Authorities. Harmony Airways China Advance Team returned from Beijing on Thursday after a very successful round of discussions with China Civil Aviation Officials. [. . . . ]

2003 February

Now to the 'Celebration of Light" company and more business networks related to the BC 2010 Olympics and construction projects, highway construction, and the like.

The HSBC (bank) is one of Li Ka-shing's companies, along with Cheung Kong Holdings, involved in construction of the Black Tusk Highway leading up to Whistler and the Olympics 2010. HSBC was mentioned as a sponsor, along with TK Ho and Harmony Air, of the "HSBC Celebration of Light" Radical Press, 2/19/2003. Note the date.

Caveat: This information was compiled by a group who were (are?) against the 2010 Olympics at least in part because they thought the whole thing was an excuse for the taxpayers to be forced to provide and pay for the new / upgraded infrastructure needed for businesses to develop in BC, particularly along the route between Vancouver and the Olympic site in Whistler. Read with that bias in mind and decide for yourself what you think. NJC

[. . . . ] Li Ka-shing's companies: Omnipoint Corporation, priceline.com Incorporated, VoiceStream Wireless Corporation, Western Wireless Corporation, Global Crossing Ltd., Breakaway Solutions Inc. and Husky Energy Inc. (Husky Board Members also include: Stanley's wife Eva, Terry Hui, President and CEO of Concord Pacific Group Inc., Martin Glynn President, Chief Executive Officer and a director of HSBC Bank and Victor Li, son of Li Ka-shing & Managing Director and Deputy Chairman of Cheung Kong (Holdings) Limited Canada).

[. . . . ] HSBC (of which Li Ka-shing is a Principal and Director) is aptly represented on the Bid Board by Eric Major, Director, HSBC Capital (Canada) Inc. and Milton Wong, Chair, HSBC Asset Management Canada Ltd. (responsible for assets of $4 billion at HSBC). HSBC purchased M.K. Wong & Associates to form HSBC Asset Management Canada Ltd. Merrill Lynch Canada (reportedly owned by Thomas Fung, Fairchild Group) is represented on the Bid Board by Guy Savard, Vice-Chair & Chair, Quebec Operations, Merrill Lynch Canada Inc. Merrill Lynch International is reportedly owned by Li Ka-shing and Thomas Fung. Bid Board Member, Ms. France Chrétien-Desmarais is daughter of the Honourable Jean Chretien, [then]Prime Minister of Canada. Mr. Chretien, was from 1986 to 1990 a Senior Advisor with Gordon Capital Corporation in Montreal. Gordon Capital is principally owned by Richard Li (Li Ka-Shing's son) Gordon Capital owns HSBC Securities.

Ms. Chretien-Desmarais husband is Andre Desmarais, President and Co-Chief Executive Officer of the family-owned Power Corporation of Canada [.] Power Corporation of Canada is a diversified management and holding company. Power Corporation of Canada has holdings in leading financial services and the communications sector.

Through its European-based affiliate Pargesa group, Power Corporation holds significant positions in major media, energy, water, waste services, and specialty minerals companies. Power Corporation also has diversified interests in Asia. [. . . . ]

Power Financial Corporation is a diversified management and holding company with interests in the financial services industry in North America. Its Europe-based Pargesa group, holds significant positions in major media, energy, water, waste services, and specialty minerals companies.

[. . . . ] Power Corporation of Canada is a partner with Li Ka-shing in CITIC Pacific Limited (China's largest diversified Hong Kong-traded company. Its activities are concentrated in four main areas: infrastructure, trading and distribution, real estate and industrial manufacturing). Mr. Desmarais is a Director and/or Member of the Board of: Great-West Lifeco Inc., Investors Group Inc., London Insurance Group Inc., Pargesa Holding S.A., Groupe Bruxelles-Lambert S.A., Bertelsmann A.G. Mr Desmarais is also a Director of CITIC Pacific Ltd. and Bombardier Inc.

In addition, Mr. Desmarais is Chairman of the Canada China Business Council; Member of the International Advisory Council of CITIC; Member of the Trilateral Commission; Member of the Chairman's International Advisory Council of the Americas Society; Member of the Business Council on National Issues and Member of diverse foundations and trusts in Canada and a Member of the Hong Kong Chief Executive's Council of International Advisers (The CECIA advises the Chief Executive from an international perspective on strategic issues pertinent to the long-term development of Hong Kong).

As mentioned, Ms. Chretien Desmarais' husband Andre is a Director of Bombardier Inc. [. . . . ]

Li Ka-shing reportedly also holds an exclusive right to use the CN Tower for a period of 35 years (obtained for $2 billion CDN). Financier Robert Fung, was appointed by Prime Minister (and former business partner) Jean Chretien to Chair the Toronto Waterfront Revitalization Task Force on behalf of the Government of Canada, the Province of Ontario and the City of Toronto. The new corporation was to involve construction of large-scale infrastructure projects that would permanently improve Toronto's waterfront, as well as support the city's bid for the 2008 Olympics. [The decision gave the Olympics to Vancouver but I understand the waterfront improvement is to go forward. Check this. NJC]

His report detailed a strategic business plan for the $12 billon renewal, development and financing of Toronto's waterfront. Fung was afterward appointed as Chair of the Toronto Waterfront Revitalization Corporation.

Search: Do we see any trends here that may help us find the answer? , Can anyone really rationalize the spending of billions of dollars , AND HERE COMES THE REALLY SAD PART FOR TAXPAYERS:



2003 October -- CSL wins award in Hong Kong

There are other connections and networks of interest -- and awards.

The winning campaign: Citation For Outstanding TV Campaign -- “One2Free ‘SMS Lovers’" -- Hong Kong CSL Ltd. -- Paul Martin's CSL--ex-company--divested to his sons. Check when.

Professional Institute of Management and education Press Release 27/10/2003

“One2Free ‘SMS Lover’” marketing campaign by Hong Kong CSL Ltd won the Gold Prize of the HKMA/TVB Award for Marketing Excellence 2003. [. . . . ]

. . . Mr T K Ho, Group General Manager, Television Broadcasts Ltd presented the trophies and certificates at the Award Presentation Luncheon this afternoon (Monday, 27 October 2003). The Award Presentation Ceremony also featured the keynote address on "Beyond Light & Power" by Mrs Betty Yuen, Managing Director, CLP Power Hong Kong Ltd.

This unique Award on marketing, organized by the Association since 1985 and sponsored by Television Broadcasts Ltd . . . .

2002

Entrepreneur’s latest venture is an airline

[. . . . TK] Ho readily acknowledges that he was not the best of students. “I did not work hard academically,” he admits.

That is a strange comment to make when on his airline website is listed the fact that, actually, Dr. Ho, born and raised in Hong Kong and now a Canadian entrepreneur, has his doctorate in Commercial Science from the University of Richmond in Virginia.

The airline was launched in November 2002 as HMY Airways, an acronym for Harmony. It is owned by Dr. David T.K. Ho, an energetic Canadian entrepreneur who was born and raised in Hong Kong. Dr. Ho started HMY Airways . . . After all, people are the most valuable resource inside any organization, he says. Dr. Ho received a doctorate degree in Commercial Science from the University of Richmond in Virginia. [Was that an honourary doctorate?. . . . ]

Milestones
* June 2004 - Launch of service to Honolulu and Maui, Hawaii
* May 2004 - HMY Airways becomes Harmony Airways
* March 2004 - David Sylvester named new President of HMY Airways [. . . .]
* March 2003 - HMY receives Transport Canada approval to operate as a scheduled domestic and international airline [. . . .]
* February 2002 - Dr. David T.K. Ho announces plans to start a new Vancouver-based airline [. . . . ]

Apparently, this airline is not failing. In fact, May 9, 05, in the National Post there was an article which stated that Gary Collins, Finance Minister of BC's Liberal government and possibly in line for party / government leadership, had left his position to join Harmony Airways as President & CEO.

No-one leaves a position of that calibre unless there is certainty that the airline is going to get what it needs from regulators and thus, there is money to be made.




2003

The former deck-hand who bought the company -- Paul Martin will be the first Canadian prime minister with a true, blue-ribbon background in business November 4, 2003, Glen McGregor, Ottawa Citizen

Note in the excerpt below the use of the words "craven right-wingers". Bias?

Search:

Paul Martin's entry into the business world came
Mr. Martin met Maurice Strong
leap from company climber to stand-alone magnate
CSL turned to shipyards in China and Japan to

[. . . . ] One question never answered about CSL's transformation was the source of its money during its capital-intensive expansion in the 1990s. The building of new ships would have required tens of millions of dollars. At the same time, Mr. Martin was finance minister and pondering the contentious issue of bank mergers, and was also responsible for the approvals of foreign banks in Canada.

[. . . . ] Only this year, with Mr. Martin's political fortunes ascending, were the details of the agreement with Mr. Wilson scrutinized more closely. In fact, through his term as finance minister, Mr. Martin had regular meetings with CSL officials to discuss the company's major new undertakings. The meetings were chaperoned by Mr. Wilson, and usually held in his Ottawa office.

[. . . . ] Another avenue the opposition may choose to explore is the links between the new prime minister and his legions of political donors, who have contributed an astounding $11 million to fund Mr. Martin's leadership campaign. The donor list reads like Who's Who of Canada's corporate elite, with Bay Street entrepreneurs such as Gerry Schwartz and Miles Nadal, and blue chippers such as Joe Rotman. There are loyal Liberal backers like Toronto developer Elvio Del Zotto and Senator Leo Kolber, and craven right-wingers, like Hal Jackman and the Stronach family of Magna Corp. Vancouver billionaire Jim Pattison gave from the west coast and the Irving family from the east.

Scroll down for more about the Irvings special tax considerations, on top of the special consideration whereby the Irvings managed not to have to pay taxes on the money (now-deceased) K C Irving was taking out of the country to Bermuda. You will have to research this last part. I read about it.

The donors' list shows that Mr. Martin's support from the business world is transnational, with Chinese billionaire Li Ka Shing and Hong Kong airline operate David TK Ho donors to the Martin leadership campaign, through Canadian companies. [. . . . ]

Public Declaration of Declarable Assets [. . . . ]

Cordex Petroleums Inc. (oil and gas exploration and production) (Alberta) - 4.6 per cent owned by The CSL Group Inc.

It is a very small percentage but this is the company mentioned in articles relating to Maurice Strong and the UN.



2003 and the Ethics Commissioner Howard Wilson's Imprimatur

Office of the Ethics Commissioner: Paul Martin - 7th Disclosure -- Contributions, including contributions in-kind, collected outside of a blind trust, which are known to the candidate

(Reporting Period - July 1, 2003 to close of business on August 31, 2003)
Cash Contributions . . .

HMY Airways Inc. 25,000.00 . . . [Harmony air used to be called MY air]
David T.K. Ho Enterprises Ltd. 25,000.00 . . .
DTKH Burrard Properties Ltd. 5,000.00 . . . [see below]
[. . . . ]

DTKH Burrard Properties -- Is this David TK Ho's? -- perhaps part of David TK Ho's Enterprises?

Applicant

W. T. Leung Architects Inc.
300-973 West Broadway
Vancouver, BC
V5Z 1K3

Owner of Development

DTKH Robson Development Ltd.
c/o W. T. Architects Inc.
300 - 973 West Broadway
Vancouver, BC, V5Z 1K3

How strange that DTKH does not have its own address but uses the architect's.



On the way to the above information on how to win--or is it gain influence in Canada when you are a businessman from away, in this case, Hong Kong, I found the following contributors to Paul Martin's campaign:

10 Toronto Street $ 25,000.00 . . .
AIC Limited 100,000.00 . . .
Alliance Communications 100,000.00 . . .
Bombardier 25,000.00 . . .
CanWest Global 100,000.00 . . .
CN Railway 25,000.00 . . .
J.D. Irving Limited 100,000.00 . . .
Torys 50,000.00 . . .

How does a street address contribute to the Prime Minister's campaign?

Number 10 TORONTO STREET By Bruce Bell

When Gillies and Hollinger . . . . What those two hapless friends found was a massive yet overlooked gold vein that was to become the richest gold producer in the Western Hemisphere. Sadly however Benny Hollinger, after selling his share to Noah Timmins (founder of the Shania’s hometown) dies a few short years later of a massive heart attack. Nevertheless his name lives on in Hollinger Inc the company once headed by the infamous yet charismatic Conrad Black whose headquarters at Number 10 Toronto Street, the former 7th Post Office, is still very much a jewel in our crown.

CanWest Global, previously owned by Conrad Black and now owned by the Aspers, as a mainstream media outlet, is unbiased at $100,000? To survive in business in Canada, it looks as though donations to PM and/or the Liberal Party are essential.

CN Rail is a crown corporation. Why is it contributing to a Liberal campaign?

Let's see, the Irvings, compared to other and smaller business owners, are getting extraordinarily favourable tax considerations for its LNG terminal in St. John NB, I believe. No quid pro quo for $100,000? And the moon is made of green cheese.

Curious, I searched AIC. (See below.)




The innocent must pay $58.8-million to Affected Investors? Why?

How about a simple apology, guys? -- among them, AIC Ellen Roseman, Mar. 18, 05

[. . . . ] Yes, these managers have agreed to pay $205.6 million to unit holders affected by the practice. But that's not the same as saying they're sorry.

[. . . . ] The OSC singled out 20 fund managers that allowed market timing. But 15 of them identified the problem at an early stage and shut it down with "negligible harm to investors."

The remaining five fund managers — AGF Funds Inc., AIC Ltd., CI Mutual Funds Inc., Franklin Templeton Investments Corp. and I.G. Investment Management Ltd. — are among the largest companies in the industry.

New $10 million AIC Institute for Strategic Business Studies

The Chair and the Institute are endowed by the generosity of AIC Investments and its Founder, Mr. Michael Lee-Chin, with matching funds by McMaster University and government sources . . . knowledge based economies of the 21st Century.

Search: AIC's Chairman and Chief Executive Officer Michael Lee-Chin , who started the Kitchener-based investment firm called AIC Limited which handles $11 billion in assets. Also, Lee-Chin funded the AIC Institute for Strategic Business Studies at McMaster University. AIC handles mutual fund sales and global fund management. There has been a problem.

IN THE MATTER OF THE SECURITIES ACT R.S.O. 1990, c.S.5, as amended - and - AIC LIMITED SETTLEMENT AGREEMENT or The Harm Caused by Market Timing of Mutual Funds

7. In November 2003, the Commission, in co-operation with the Investment Dealers’ Association of Canada and the Mutual Fund Dealers Association of Canada, began an inquiry into potential late trading and market timing in the Canadian mutual fund industry.

8. In its review of AIC, Staff found no evidence of late trading occurring in AIC Funds. Staff has not found any evidence of market timing by any insiders of AIC or any evidence of ongoing market timing activity in AIC Funds. The following facts relate exclusively to market timing by certain third party investors in AIC Funds.
15. . . . . for the years 1999 to 2003

17. AIC entered into agreements with three Market Timing Traders

24. AIC agrees, as a term of settlement, that it will make a payment in the amount of $58.8 million to Affected Investors

"Three institutional investors holding accounts in AIC Funds have been identified as having profited as a result of frequent trading market timing strategies that were pursued in certain of the AIC Funds (the “Relevant Funds”) in the period from January 1999 to September 2003 (the “Market Timing Traders”). The Market Timing Traders traded in AIC Funds through one or more Canadian investment dealers."

Search: In the period January 1999 to September 2003 , "Due to the time at which the foreign markets close, the price of foreign equities held in the portfolio of a foreign fund, and therefore the price of the foreign fund, will not reflect this pricing correlation until the following trading day." , "17. AIC entered into agreements with three Market Timing Traders that contained the following basic terms:" , no public disclosure of these agreements , VII. TERMS OF SETTLEMENT , will make a payment in the amount of $58.8 million to Affected Investors

What "institutional investors"? Why "no public disclosure of these agreements" and, if AIC did nothing wrong, why is it going to "make a payment in the amount of $58.8-million to Affected Investors?

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