Elf:

Below please find a copy of a report I wrote after a phone call I
made to Jim Morrow, Tax Compliance Officer, OSA Int. A friend of
mine from L.A. had overheard Paul Laquerre, the Ethics Officer at
Celebrity Centre International, saying that this person from OSA had
been "trying to locate Randy McDonald" after I had moved to
Nashville in October, 1994. (I still don't know why he couldn't
locate me--we had left complete forwarding phone and mail
information everywhere. OSA competence, I suppose.)

So I called Jim Morrow to let him know that rumors of my
effervesence had been greatly exagerrated, and that I was indeed
alive and well and living in Tennessee. I asked him why he had been
trying to reach me, and he told me it was to "clear up any
confusions I had" about SPD "PERSONAL INCOME TAXES" (which he had
written)--the one I wrote a report on back in September '94.

I told him I didn't have any confusions--the issue was patently
illegal and inane, which was why I wrote the report. He justified it
by telling me it was based on this "BIGWINPEACETREATY" with IRS. So,
since he brought it up, I said, "Great. Why don't you send me a copy
of it, or tell me where I can get one to read, I'll word clear it if
needed, and then maybe I will understand the whole thing a lot
better."

That's when he told me it was secret. There was a painfully long
comm lag on my end. I stood incapacitated. I finally asked him to
repeat what he said. He said it was a secret agreement,
confidential, closed, perdu. Our conversation did not end well after
he refused to put that in writing.

Someday these reports may mean something to someone. They sure
didn't mean anything to the people I routed them to. Thanks for
archiving them. And here it is.

                                        Randy McDonald

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To:     LRH Communicator International                  14 May 1995
FROM:   JON RANDALL MCDONALD

cc:     David Miscavige C.O.B. RTC          ED International
        Jim Morrow, TCO OSA Int.            C/O OSA Int.
        International Justice Chief         LRH Communicators
        President, C. of S. Int.            Ethics Officers
        Board of Directors, C. of S. Int    Board of Directors, RTC


                    HIGH CRIME, SUPPRESSIVE ACT REPORT

                      Withhold of Vital Information
                            DAVID MISCAVIGE
           Chairman of the Board Religious Technology Center

                             JIM MORROW
    Tax Compliance Officer, Office of Special Affairs International


        "A management which will pervert or suppress a reality,
        no matter now 'reasonable' the act seems, is acting in the
        direction of the destruction of a group."
                                            L. RON HUBBARD
                                           "An Essay on Management"

On 8 October 1993, David Miscavige announced publicly that an
agreement (a "peace treaty") had been signed with the Internal
Revenue Service of the United States. According to a phone
conversation with Jim Morrow, Tax Compliance Officer at OSA Int.,
which took place around the 10th of May, 1995, Miscavige withheld
the following vital information:

    1. The "peace treaty" itself is secret, and may not be seen by
    parishioners or staff (although Morrow himself claimed to have
    seen the document, implying that there are limited exceptions).

    2. It was the desire of both or all parties (meaning both the
    IRS and the participating church officials) to keep the
    agreement secret.

Both statements above have been affirmed by Jim Morrow, but only
verbally in the phone conversation. In that phone conversation, he
was asked to commit those statements to writing, but he adamantly
refused.

In statement #2 above, it says "both (or all) parties," because
another vital piece of withheld information is exactly who entered
into the agreement with the IRS. No data has been released naming
the parties to the agreement, and Jim Morrow also asserted verbally
over the phone that this information is part of the secret.
Therefore it is unknown whether the agreement is with RTC, or with
the C of S Int, or both, or whether it includes other parties.

Jon Randall McDonald