Howard Hughes’ Shadow

Over Tonga’S New Bank

Trade

Winds

A London financial journalist has provided some bizarre details of the background to the Bank of the South Pacific, a merchant bank which is planning to set up operations in Tonga.

A London financial journalist has claimed that an erstwhile associate of the late American millionaire recluse, Howard Hughes, is the power behind the scenes in a new merchant bank which is planning to set up in Tonga.

The journalist, Richard Milner, writing in he Sunday Time. of December 4, says further that the man, Mr John Meier,is living inCanadaand ~’ • t 4 .f. .. ITO that he is still subject to US Proceedings from ughes Tool Co (now Summa Corporation) in the matter of mining properties acquired for slBm in 1968 and 1969”.

Milner adds; “To quote a source close to the action, they ‘turned out to be gravel pits’.”

Milner names the new bank as the Bank of the South Pacific. (King Taufa’ahau Tupou IV referred to it, without naming it, in his speech from the throne when opening the 1 977 session of the Legislative Assembly—PlM Aug 1977 p 64 ) ’

The king, according to Milner, seeks improvements to Tonga’s infrastructure Cable & Wireless is reported to be boosting telecommunications, and materials are being taken in to extend the airport, which is financed by a SA3 million grant from Australia.

These modern amenities are considered necessary to show the right type of front door to

visitors—to allow them to get in simply and to be able to make overseas calls. it ttK/l . .T"’

P a ‘™ iv Kl "§ . Tau f a ah au ifupou IV s ambition to lead .' 60 '^ s ! nto ?? r h ' Mury - W , hat . does I . s ° r ; ° uts,d f r *- *™ ; l at he . new bank * eem to f have an y bank ng expertise. Ex ploratory discussions with Swiss Banking Corporation, I understand, met with little re- S ponse. And its remit does cover banking as well as (inter alia) starting a national airline and revamping the coconut industry, 4tT , ’ .

D Indeed the charter of Bank of the South Pacific (dated 21, 1977) entitles e , ier and hl , s anonymous backers to do almost anything m tbe world ’ s latest offshore lax haven. BoSP has a 99-year mono Poly of merchant bank inB.m Tonga, is not subject to natlona l legislation or cur rency controls and it can issue securities, give guarantees and 15. mone y as it thinks fit.

Qulte a COU P for the bank ’ s governor, John Meier of 360 English Bluff Road, Delta, ° ntlsb Columbia .

People mentioned in Milner’s article, apart from Meier, are Mr W. (Bill) Waterhouse of Sydney, one of Australia’s biggest book makers and honorary consul

for Tonga in Sydney, Mr David Smeaton, a Canadian stock promoter, and Mr Gordon A. Hazlewood, a Vancouver lawyer.

Although not yet established in Tonga in its own name, the BoSP already has five registered offshoots in the country. Mr Hazlewood is quoted by Milner as saying that plans include a 250apartment comdominium project budgeted at s2sm, and a 550-bedroom luxury hotel costing even more as the nucleus of a tourist village.

Mr Hazlewood would not tell Milner much about the board, except that Meier was the governor and “the former Mrs Howard Hughes” was a co-director (public relations), He was referring to onetime child actress Terry Moore (of Son of Lassie fame) who did not in fact marry Hughes after her marriage to US football

star, Glenn Davis, broke up in 1951.

“She is well respected in the Hollywood community which would be natural customers for the condominium,” Mr Hazlewood said, Contacted by PIM in Sydney, Mr Waterhouse said his role in the matter was to introduce Mr Hazlewood to the king. He said he con sidered the area needed money, and that nothing but good could come from the bank.

“We have to attract money into the area which will help local business,” he said. “I can’t see any sense in letting money go to Switzerland if we can do something with it in the South Pacific. We need it for things like tourism and in dustry”.

Asked by PIM if he had put any money into the bank, Mr Waterhouse said; “No”.

King Taufa’ahau Tupou... sympathy for his ambitions.