Taiyo Hawaii Company, Ltd. - Page 11

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             reflects petitioner as the borrower and Seiyo as the lender, as                                    

             follows:                                                                                           

             Loan         Loan Amount         Interest                                                          
             Date         (Yen)               Rate                      Conditions                              
             7/31/86      50,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             8/30/86    52,000,000            Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             11/29/86     20,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             12/31/86     13,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             3/31/87      32,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             6/30/87      30,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             9/30/87      29,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             12/31/87     27,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             3/31/88     158,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             6/30/88      28,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             9/30/88      27,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             12/31/88     27,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             3/31/89      28,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             5/31/89     400,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             6/30/89      31,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            
             9/29/89      21,000,000          Short-term prime          Payment of principal is                 
                                              rate of payment           the priority                            

             Tsukamoto was not aware of some of the advances listed in the                                      

             aforementioned document.  No copies of individual promissory                                       

             notes evidencing the advances were received.                                                       

                   On September 30, 1995, petitioner's balance sheet reflected                                  

             an outstanding loan of $18,018,708.85, as well as accrued                                          

             interest of $5,856,327.97, shown as payable to Seiyo.  Patrick                                     

             Kubota (Kubota), petitioner's treasurer and project manager from                                   

             1986 through 1994, was responsible for petitioner's accounting                                     







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