[Daishowa Forest Products Ltd. - letterhead]

6 February 1997

Mr. Marc Drouin
Amitié Lubicons-Quebec
PO Box 854
Kanesatake
Mohawk Territory
Québec, Canada
J0N 1E0

Dear Sir,

Responding to your demonstration at our offices the 23 January 1997 and to your letter addressed to Mr. Koichi Kitagawa, we would like to make some clarifications concerning the action taken by our company against the [Toronto] Friends of the Lubicon.

First, please note that Daishowa Forest Products Ltd is a company completely independent from Daishowa-Marubeni International Inc. (DMI), the owners of the Peace River pulp mill in northern Alberta, and that we have no role from an operational point of view in the management of DMI. Boycotting our company in order to help the Lubicons settle their claims with the governments of Canada and Alberta is consequently unjustifiable.

Secondly, we maintain that the Friends of the Lubicon gave a false impression in promoting their activities. From the beginning of our legal proceedings, these false impressions were recognized as such by the court.

Finally, the Friends of the Lubicon's boycott was principally directed at the clients and not the company itself. The suit was initiated in order to protect our clients against threats and harassment. Our position, therefore, is that the friends of the Lubicon used the illegal means of boycotting our clients and this was recognized by the Ontario Court Division which granted an injunction until the case is heard next September.

We believe that the injunction against the Friends of the Lubicon is completely justified. The Friends of the Lubicon went too far in their boycott activities in creating false impressions and threatening clients. Therefore we continue to use all legal channels available to protect ourselves as well as our clients.

DMI has advised us that they have responded to other elements of your letter.

Yours sincerely,

[signed]

Tom R. Cochran
Director, Corporate Development