Thank you for your correspondence of December 21, 2008, regarding recent statements on the part of the Venezuelan government with regard to Crystallex International Corporation's Las Cristinas project. Let me assure you that we share your concerns and are taking this matter very seriously.

The Canadian Embassy in Venezuela has worked closely with Crystallex for several years in its efforts to obtain the necessary authorizations in order to develop the Las Cristinas Project. Our Embassy has raised this issue repeatedly with senior Venezuelan government officials. We assure you that both the Canadian Embassy and officials in Ottawa are following up on the recent statements of the Venezuelan government concerning the take over of Las Cristinas. Senior officials, including Canada's Ambassador to Venezuela, have requested meetings with Venezuelan government officials in order to confirm reports concerning the status of the mining project.

You rightly point out that Canada has a Foreign Investment Promotion and Protection Agreement (FIPA) with Venezuela. This Agreement provides Canadian investors with guarantees against discrimination and expropriation without compensation, which, if breached, can be the basis for a monetary claim by affected investors before an international arbitration tribunal. The Government of Canada expects that the Government of Venezuela will fully honour its obligations under this Agreement.

The Government of Canada will continue to monitor developments closely and, in consultation with Crystallex, make every effort to defend the interests of the company and its shareholders.