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DOCUMENT TITLE: CST Luxembourg Currency Transactions
SUBJECT: Luxembourg Currency Transactions for the corporation known as "Church of Spiritual Technology" (CST)
PARTIES: CST; Banque Indo-Suez, Luxembourg; Sherman Lenske, Stephen Lenske, and Lawrence E. Heller, Special Directors of CST


This 4 January 1988 document is of unknown origin or authorship; it is one that was posted anonymously by someone using the psuedonym "Tenyaka." It is self-explanatory.

                                                 4 Jan 1988


     CST's overseas bank is Banque Indo-Suez, Luxembourg, where CST
holds funds until they are needed to be spent on CST's purposes to
preserve the technology of the religion of Scientology.

     In order to maximize the return on these funds, CST invests
the money in interest-bearing accounts.  In addition, CST has
invested surplus funds in hard currencies (ie. major currencies
such as Pounds Sterling, Deutsche-marks, Dutch Guilder, Japanese
Yen, etc).

     The Luxembourg bank, being based in Europe and in constant
touch with the European currency markets, has developed expertise
in conducting profitable dealings on the foreign currency
exchanges.  The bank employees handling CST's investments are
specialists in this field, with up-to-the-minute information on
what is happening on the markets so that they can take advantage as
trading circumstances change.  Because of this expertise CST has
authorized the bank to invest its surplus funds into different hard
currencies on its behalf and report on these regularly via
transaction advices which are sent out on each transaction done.

     The investment of CST's funds by the bank into hard currencies
is often done through the medium of futures contracts.  A futures
contract is a contract to buy or sell a stated amount of currency
(US Dollar or other hard currency) at a particular exchange rate,
which is fixed at commencement, on a specified date in the future -
usually one or two months hence.

     A gain or loss on a futures contract arises from changes that
occur in the exchange rate between the date when the contract
commences and the date of maturity.  For example, if the Contract
is to buy a certain currency at a specific rate and the value of
the currency increases by the maturity date, a profit results.

     If the futures contract is to sell a currency at a specific
rate on a future date, and on maturity the market rate of that
currency is lower than the fixed rate, a profit also results.

     A loss can arise when the currency being bought or sold moves
the wrong way, ie. on a future contract to buy a currency at a
certain rate if the exchange rate of the currency being purchased
falls by maturity date; conversely if a future sale contract is
taken out and the currency sold rises by maturity date.

     Sometimes, at maturity, the futures contract is renewed or
rolled over for a further period.  In this case, the original
contract is not liquidated but is continued for a further term.
This is done if the expectation is that the currency being bought
or sold will show a profit at the new maturity date, if this isn't
the case at the original maturity date.  At other times, the
original contract is renewed for a further period and,
simultaneously, a reverse contract taken out, ie, one which will
protect the original investment if it results in a loss at later

     Each of these foreign currency movements and futures contract
transactions is done through CST's foreign currency bank accounts
at Banque Indo-Suez, Luxembourg.  Every purchase or sale or renewal
is reflected by an appropriate debit or credit entry on the bank
statements.  It is for this reason that there appears to be such a
large gross turnover of funds on CST's Luxembourg bank accounts.

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