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Clark urges RCMP to dig further into Chretien loan controversy
Updated: Mon, Jan 22 06:00 PM EST

OTTAWA (CP) - Conservative Leader Joe Clark is urging the RCMP to do some digging of their own into Jean Chretien's bank loan controversy before they decide whether to forgo an investigation.
Clark sent the letter last week after Mounties asked his officials in a December meeting for information that would help them decide whether to launch an investigation into the actions of a sitting prime minister. In his reply, dated Jan. 15, Clark suggested finding evidence was up to the RCMP, not him - though he gave them some ideas.
Clark first wrote the RCMP during the November election, asking them to investigate circumstances surrounding Chretien's calls to a federal bank on behalf of a constituent.
Chretien admitted he spoke to the president of the Business Development Bank in 1996 and 1997 to secure a loan for friend Yvon Duhaime to help him run a hotel - the Auberge Grand-Mere, which Chretien once partly owned.
Duhaime, who had been rejected by the bank once, eventually got $615,000. Chretien said he was merely acting as an MP by supporting a constituent and had nothing to gain from the calls.
The federal ethics commissioner agreed after a quick inquiry during the election campaign, prompted when opposition parties complained.
But police haven't decided whether to launch an investigation.
Clark's letter, obtained by The Canadian Press, suggested it's not up to Tories to find the smoking gun - if there is one to be found.
"I have the greatest respect for the independence and professionalism of the RCMP," he said in the letter.
"This is a particularly sensitive case, because it does relate to the conduct of the prime minister of Canada and has attracted widespread public interest.
"Were I in your position, in such circumstances, I would want to be sure that the police were in possession of all the facts relating to relevant transactions and relevant decisions taken by the BDC, or urged upon the BDC."
Specifically, Clark suggested the RCMP interview two former BDC executives:
- Former president Francois Beaudoin, who is suing the BDC. He says he was forced to resign when he suggested the $615,000 loan be recalled.
- Bernie Schroder, who took over briefly as interim president. Clark said he should be asked whether his brief tenure had anything to do with the Auberge file.
The Tory leader also said the RCMP should look into business transactions related to lands adjacent to the hotel, "whose value might have been affected" by the BDC decision to grant the loan.
Chretien once owned a share of an adjacent golf course, then sold it in a 1993 deal that later fell through. Chretien then successfully sold it to a different buyer in 1999 and the ethics commissioner ruled there was no violation of conflict rules.
Asked if the RCMP had interviewed Beaudoin or Schroder, a spokesman would only say that the matter was still being "actively reviewed."
"We need to analyze the information and then decide what is the next most appropriate step to take. In certain instances, we may require more to follow up on than others."
In his letter, Clark hinted he'd pursue the matter in Parliament after it resumes Jan. 29.
Some have suggested legislation could be changed to tighten rules of conduct for parliamentarians.
Parliament's look at the matter could reveal information the RCMP may want to look at as well, Clark said in his letter.