THE RCMP STING OPERATION

Karlheinz Schreiber is German businessman who helped finance the movement that dumped Joe Clark in 1983 eventually leading to Mulroney taking over leadership of the Tory party.

Schreiber gave Mulroney $300,000 in cash over three meetings shortly after he stepped down as Prime Minister.

Karlheinz Schreiber: One day I received a telephone call and somebody asked for a meeting and referred to a lawyer in Montreal who has worked for me. And I met with this man at the Four Seasons hotel and I have to say he was a very elegant, very educated person, in his whole appearance.

We met several times, as you know, and regardless what ideas he had, somehow I have to confess I liked the guy. And he explained to me that he knew about me and that he thinks with the business interests he has that I could be the best help for him to get it done.

And therefore he spoke to the previous senator [Michel] Cogger and that Cogger agreed to introduce him to me or confirm at least that he is the right person I should speak to.

So and then the first thing he came up with, he told me that he is pretty much in good relations and connected to the Russian Mafia, and that these people have access to the highly sophisticated Russian high-speed torpedoes, and that I should give him a hand.

And I found this somehow bizarre and I thought it's pretty unrealistic…So and I said look, I don't think that is a realistic plan. But yeah, but he said look, you see, can do it directly but through the Canadians and so on. I said look, I – I think it's ridiculous, we can't do that.

Housing units, where for the Canadian forces and have a project there and have some associated people working on this, and I would like to get your advice, how to get that done the best way.

And soon we have to speak. I said well, when you have connections, what is it? Yeah, they say they can do it and I said look, when you think about – what do you think how you get this done?

There's the normal way through a tender or with an offer, no? And you get it, that's fine. But if you don't get it that way, how do you think you can get this done?
You have to convince the soldiers, let's say the army, then the generals, the deputy minister. Then you go to Supply and Services. Then you go to Ops, then you go to Privy Council. Maybe a deputy minister, minister and finally the prime minister.
But do you think, do you think I can – this is how it works in Canada, and I can only urge you to stay away from this because you may be faster in jail than you can even think about this. It's not how you can do anything in Canada.

…

Then the next thing is that he showed up with – and he sent me letters from all over the world, he called, and then he showed up with raw diamonds, asked me whether I could help to place the raw diamonds and he would bring them here and get them cleaned and get them prepared or you know, converted to jewellery and…

All kinds of crazy things. And in exchange for that, I always thought he might have a better idea. He should become a agent for our other program, you know, and I'm referring to… healthy food and so.

This is more or less what the story was. It was amazing how intensively he tried to get me involved in this, even though I told him that it can't be done.

And when I look back, yeah, I had the funny feeling somehow, but I never thought that this would be an undercover agent from, from the Canadian government.

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