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<title>MARCHI WELCOMES HONGKONG BANK OF CANADA'S INVESTMENT IN NORTHSTAR TRADE FINANCE</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1">December 4, 1998 <em>(1:30 p.m. EST)</em> No. 285</font></p>
<p align="CENTER"><font face="Arial" size="+1">MARCHI WELCOMES HONGKONG BANK OF CANADA'S INVESTMENT IN NORTHSTAR
TRADE FINANCE</font></p>
<p><font face="Arial">International Trade Minister Sergio Marchi today welcomed the announcement by Hongkong Bank of Canada of
a substantial equity investment in Northstar Trade Finance Inc., a partnership between the public and private
sector that supports the export financing needs of Canadian small and medium-sized businesses.</font></p>
<p><font face="Arial">"I am delighted that Hongkong Bank of Canada is adding its capital and international business expertise to help
meet the export financing needs of the Canadian small business community as an investor in Northstar," said
Mr. Marchi at a ceremony held in Toronto to announce the new investment. "Broadening the base of Canadian
exporters is a personal priority. I want more companies exporting more goods and services to more countries."</font></p>
<p><font face="Arial">Northstar Trade Finance Inc. was formed in 1994 as a partnership of public and private sector organizations,
including the federal government, to provide medium-term finance to foreign buyers in support of export
transactions in the $100 000 to $5 million range -- a market niche that, although not being served by
conventional sources of trade finance, is critical to the success of smaller Canadian companies in world
markets.</font></p>
<p><font face="Arial">"As a public-private sector partnership, Northstar is an excellent example of the Team Canada approach in
action," said the Minister. "The addition of Hongkong Bank of Canada to the team will enhance access to
competitive export financing for Canada's small and medium-sized companies."</font></p>
<p><font face="Arial">Catherine Swift, President of the Canadian Federation of Independent Business said, "Small and medium-sized
businesses are increasingly looking to expand their activities in foreign markets, but accessing export financing
remains a challenge. The activities of Northstar Trade Finance are a welcome addition to the marketplace."</font></p>
<p><font face="Arial">In addition to Hongkong Bank of Canada, other Northstar shareholders are the Bank of Montreal, the Royal
Bank of Canada and the Government of British Columbia. The Government of Ontario provided initial capital,
and the Government of Canada provides support through the Western Economic Diversification Program, the
Business Development Bank of Canada, and the Export Development Corporation (EDC). As a Crown
corporation reporting to Parliament through the Minister for International Trade, EDC has provided insurance on
all Northstar loans.</font></p>
<p><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Leslie Swartman</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><font face="Arial">This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca</font></p>
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