1^st August 2009

Dear Deputy

This is a short response to the letter dated 30^th July 2009, which the Chief Minister has circulated to you in reply to LGDAG’s recent letter to all Deputies over the weekend of 25^th- 26^th July 2009.

Whilst the LGDAG is pleased to see a completely different tone in this letter, to that experienced over the past ten months, we feel that this has only been brought about by recent pressure and the overwhelming vote by the 1600 LG depositors to start legal action against the Icelandic Authorities and Landsbanki Islands Hf. You may recall that last year HM Treasury officials made it clear to LGDAG members who met with them in London that HMT believed that the Landsbanki issue was one which the Guernsey Authorities must resolve. More recently, in April, the UK Treasury Select Committee recommendations stressed that UK and Guernsey authorities should work together to recover the savers’ monies. It has taken until now for any indication of action to be initiated.

We accept the Chief Minister’s statement concerning the responsibility of the Administrators and the GFSC, although we have also heard nothing from the GFSC as to any actions they may have taken. Government is separate, acts politically and can do many things to apply pressure on the UK Treasury, the Ministry of Justice and the Icelandic Government amongst others. The Chief Minister is happy to concede ground as he has no stomach for hard negotiation. This visit to Iceland will inevitably involve hard diplomatic negotiation for any chance of success, given his eleventh hour approach.

If, as the Chief Minister says, the actions the Policy Council can take are bounded, why now is there some pressure being applied? Why can a delegation suddenly and at this late stage be organised to go to Iceland next week, to speak to Icelandic politicians? We are naturally pleased, but also very sceptical as to the Chief Minister’s motives and, indeed, his ability to handle it effectively.

We take no pleasure in admitting that, in short, we lack trust and confidence in him. We feel that the Chief Minister is motivated more by self-aggrandisement than any real desire to serve the best interests of the Landsbanki Guernsey Depositors, with the resultant spin which will no doubt form the basis of his report on this trip, if indeed we or yourselves are told anything. We sincerely hope we are wrong.

To that end, we believe that Deputy De Lisle, whom we believe has offered to travel with the delegation to Iceland, should be included in the party. He is a man of honesty and integrity and would be an asset to them. He will also be in a position to independently evaluate the success of the trip.

We would urge The Policy Council to recommend that Deputy David DeLisle formally accompany the group on this visit to Iceland. We believe that he has said that he will travel at his own expense.

Yours faithfully,

Matthew Dorman

Director.