1.  Scar Rule:


            At the "listening session" and the VMO/DQP training that followed that session,            

            Dr. Behre, USDA Horse Protection Coordinator, made it brutally clear that his

            view of the Scar Rule had hardened.  He went to great lengths to demonstrate   other breeds' use of pads and action devices with the tissue changes seen in   Tennessee Walking Horses.  His position was supported by Dr. Gibson in his             quote "…we get the last bite, and if I bite you, you will know that you have been            bit."


2.  Foreign Substance:


            Dr. Behre announced that the USDA had abandoned the concept of using the    "sniffer" for instant results at the inspection station.  Notwithstanding, he stated   that the taking of swab samples would continue at every event attended by the        USDA personnel, and the analysis of those samples would take place offsite,    including mass spectrometer confirmation.  Moreover, Dr. Behre removed the           2004 and 2005 anonymity and amnesty from samples to be taken by VMO's in    2006.  Prior to the Trainer's Show, it is expected that he will announce a process          for federal prosecutions of foreign substance violations including some federal         notifications, some stipulations, and some full federal prosecutions through the           Administrative Procedures Act.


3.  Negotiation of Operating Plan:


            The next Operating Plan negotiations are well under way with a target completion          ate of July and signing date of September.  Most, if not all, issues perceived to be    important by the WHAT and by exhibitors are being considered for modification      or deletion.  Complicating the process is the addition of new faces representing SSHBEA, MFTA, HIO, and NHSC, half of the prior working group.


4.  FOSH's Inquiries Regarding De-Certification:



            As previously and continuously reported over the past three years, FOSH and   NWHA routinely make inquiry of the USDA in regard to decertifying HIO's that   don't meet standards, particularly statistical standards.  FOSH has forced the        USDA to begin to adopt trigger guidelines for the initiation of decertification.      The two HIO's that have been the focus of those guidelines have been the NHSC and the KHIO.  FOSH and NWHA's efforts preceded Dr. Behre's most recent   damning statistical revelations.


5.  New York Times and Similar Articles


            The alleged New York Times expose of the Tennessee Walking Horse industry,            supposedly now in editing, is just one one of what may become a public frenzy.          FOSH, NWHA, and their respective members continue to solicit and encourage the media to write negative investigatory style articles.  Dr. Behre will continue to           make his presentation at five more listening sessions across the country.  He will   continue to refer to FOSH, NWHA, and HPC's 100% compliance in testing.  In stark contrast will be his report of the NHSC's greater than 50% non- compliance         in the        use of masking agents and Kentucky's 100% non-compliance in the use of Kerosene, which is absolutely indefensible and unexplainable.  All of those reports went unchallenged in the middle Tennessee presentation and thus they will certainly remain unchallenged in all other areas of the country.