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  "documentTitle": "Sino-Forest Corporation (TRE)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2011-06-02 00:00:00",
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      "text": "Chinese government records show a capital hole that makes claimed timber purchases impossible.",
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      "text": "When an existing PRC company wants to bring foreign currency into China as investment in the business, it applies to the Ministry of Commerce, the State Administration of Foreign Exchange, and the State Administration of Industry and Commerce (“SAIC”). Once the authorities approve the application, the company may bring in the approved amount of foreign currency. When an investor forms a new foreign-owned company, it must specify foreign currency it will invest.",
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      "text": "China imposes capital controls that ensure there are records of significant movements of foreign currency into China. From TRE’s PRC company SAIC files, it is clear that TRE’s cash needs in China outstrip the capital it has contributed to its China operations by at least $377 million, and possibly quite more. China’s capital controls prevent TRE from funding its operations from outside of the PRC by purchasing trees through payment of foreign currency.",
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      "text": "The 2008 and 2009 Jiangxi Zhonggang’s audit report shows numerous large transactions between the Company, TRE, and other parties. However, none of these transaction is forestry related.",
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      "text": "VI. The Capital Hole",
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