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March 2, 1979.

Alex McDowell, aging head of Canada's Security Intelligence Service, was deep in thought as he quietly read a letter in his spacious office on Sparks Street in Ottawa, Canada. A consummate bureaucrat, McDowell was jowled like a bloodhound. His dress code was distinctly antique, and his colleagues gave him the reverence due to a modern day Sherlock Holmes.

The letter's author was McDowell's longtime friend John Hill, head of the Criminal Investigation Department of the IRS, in Washington, D.C. The subject of the letter, designated "Sensitive and Confidential," was the federal gasoline sales tax. Hill's department had recently been advised of unsettling anomalies in the data, which had identified substantial and growing revenue deficiencies.

"I have Mr. Hill on line seven," McDowell's secretary announced.

McDowell nodded and opened up the line. "How are you, John? It's been a very long time."

"It has indeed," Hill confirmed. "I'm well and fine. It's good to hear from you, Alex. How are you?"

"The years have been unkind to my body. Every day it takes me a little longer to get up to speed."

"And your brain, does it still function?"

"With considerably reduced capacity," McDowell responded.

"Did you get my letter?"

"That's why I called. It was very timely."

"How so?"

"Elementary. Where there's smoke, there's fire."

"Fire! We're dealing with a raging inferno, Alex, and who knows what else.... I mentioned in my letter that we have reason to believe your problem and mine might be connected in some way. I think it would be a good idea for us to get together and discuss it in detail."

"I agree. My place or yours?"

"Mine. Washington is a little warmer than Ottawa at this time of year."

"Fine. I can be at Dulles by about eleven tomorrow morning. Is that too soon?"

"That's perfect. I'll pick you up at the airport. What're you flying these days?"

"I haven't the slightest idea. Every time I look around, the government has a new toy. I'll get my secretary to call you later this morning to confirm."


Hill met McDowell at Dulles Airport sharp at eleven the following morning. McDowell had arrived on board a government owned Gulfstream III, which regularly ran the route. Hill instructed his driver to proceed directly to The Garden, a chic new restaurant in nearby Georgetown.

After several martinis, followed by Caesar salads, rare fillets, and coffee, Hill and McDowell had exhausted all pleasantries and the library of stories they had gathered in the years they were classmates. Pointing to his briefcase, Hill changed the subject. "Alex, I brought a number of studies along to show you my motivation for writing. I could haul them out right here, but I think it would be better if you reviewed them at your leisure. I'd like to talk about them now."

"Where do we start?"

"At the beginning. We became involved in this thing about a year ago, when I received a letter advising me that New York State gasoline tax revenues were going south. This was happening at the same time gasoline consumption was going north. Normally, we wouldn't get involved in a state tax problem, but this one was different. We figured if there was some state gasoline tax missing, there was a pretty good chance some federal gasoline tax would be missing also."

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