Saudi partners would have preferred to enter discussion on the basis of seeking compensation for commercial loss as a result of government decisions (and indicated that they had received legal advice suggesting they pursue a claim for between $20-30 million)
It nows turns out that that "legal advice" came from the New Zealand government:
James Shaw: Did any of his Ministers suggest to Mr Al Khalaf and his associates that they sue the Government of New Zealand?
Rt Hon JOHN KEY: Well, I cannot speak for the other Ministers—I have never asked that question—but I know I certainly did not and I would be surprised if they did.
James Shaw: Why then did Brownrigg Agriculture in a letter dated November 2011 to Murray McCully say that Mr Al Kalaf will be looking “to seek commercial redress, as indeed suggested by your Government as a last resort option for him .”?
Rt Hon JOHN KEY: I cannot answer that question because I was not privy to those conversations...
So we have the government paying money to a Saudi businessman to forstall a lawsuit suggested by the New Zealand government. The question is, did McCully suggest it as a way of opening Cabinet's pockets, or did someone just say "so sue us!" in response to Al Khalaf's outrageous claims?