As part of economic diversification initiatives as Minister of Environment, Klein approved in December 1990 the construction of North America's largest pulp mill by Alberta-Pacific Forest Industries Inc. The pulp mill was touted as the first in a new generation constructed to meet higher environmental standards put in place in the late 1980s. Alberta-Pacific received a loan of $264 million from the Alberta government through the Alberta Heritage Savings Trust Fund in what Klein called a "sweetheart deal". Against the advice of the Auditor General and the Provincial Treasurer on March 31, 1997 Klein wrote off all interest of the loan, totaling $140 million to the Alberta-Pacific Joint Venture when prices were low for pulp. Klein made national headlines during the announcement when he flipped off an environmental activist who was protesting the government's the approval. Klein defended his actions by noting that it was the protester who made the offensive gesture first.