From: lpb@STRATUS.SWDC.STRATUS.COM
Newsgroups: ca.politics
Subject: KISSINGER INVOLVED IN LOANS TO IRAQ
Date: 21 Jul 92 21:39:36 GMT

Want a peaceful planet? Well IMHO a good start is taking Kissinger, putting him
in a Saturn V and sending off somewhere warm and cozy...like the sun.

Len




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  the operative issue in all of this is "conflict of interest."  keywords are:

      Export-Import Bank (Eximbank)
      Banca Nazionale del Lavoro (BNL)
      Iraq
      Kissinger Associates
      Henry Kissinger (member of International Advisory Board of BNL)
		     (formerly Secretary of State, National Security Adviser)
      Deputy Secretary of State Lawrence Eagleburger (formerly President, 
                     Kissinger Associates)
      National Security Advisor Brent Scowcroft (formerly Vice Chairman, 
                     Kissinger Associates)

    . . . The Department of Defense recently released a from the list of the 
    top 100 prime defense contractors.  Mr. Scowcroft owned stock in 11 of 
    these companies including General Electric, General Motors, ITT, and 
    Lockheed while acting as the President's National Security Adviser. . . .
        Mr. Eagleburger, the current Deputy Secretary of State, as well as
    Mr. Scowcroft, may also be involved in a conflict of interest related
    to their role in promoting military sales abroad. The "Legal Times"
    recently reported that Mr. Eagleburger and Mr. Scowcroft (a lifelong
    Air Force Officer) are strong advocates of using $1 billion in
    Export-Import Bank resources to finance the sale of U.S. military
    articles overseas. The "Legal Times" also reported that Mr. Eagleburger
    actually sent a classfied memorandum to all U.S. Embassies urging that
    U.S. defense firms be given more help selling weapons abroad. Many
    corporations, including Mr. Eagleburger's past employer, the ITT
    Corporation, stand to benefit if the U.S. foreign service is forced to
    take a greater role in selling U.S. military articles abroad. For your
    information, I have attached a copy of the "Legal Times" article
    referring to Mr. Eagleburger's and Mr.  Scowcroft's roles in expanding
    military sales abroad. I am concerned that their attempts to use the
    foreign service and the Export-Import Bank to assist corporations in
    financing military sales abroad may have been prejudiced by their past


  we live under a government of the Exxons, by the General Electrics, and for 
  the Kissinger Associates.  does anyone care about this?       -- ratitor


from ACTIV-L:

Date:      Sat, 11 Jul 1992 05:00:05 EDT
From:      Harel Barzilai <harelb@math.cornell.edu>
Subject:   Secret Loans to Iraq: Banking Committee Letter to George Bush
To: Multiple recipients of ACTIV-L <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>

    "Since these firms sell their wares worldwide, they often are the
    beneficiaries of U.S. policy towards foreign countries. I am
    deeply concerned over [..] the decisions and actions of [NSC
    Director] Mr.  Scowcroft and Mr.  Eagleburger, and [..] by a
    potential conflict of interest involving Mr. Scowcroft.

    "Until October 4,1990, Mr. Scowcroft owned stock in approximately
    40 U.S. corporations, many of which were doing business in Iraq."

     - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    
    [Letter to George Bush from Rep. Henry Gonzalez, Chair of the House
    Banking Committee]
    
    
            Hon. GEORGE BUSH,
            President of the United States,
            Washington, DC
    
        DEAR MR. PRESIDENT: The House Banking Committee is conducting an
    investigation into over $4 billion in unreported loans the former
    employees of the Atlanta branch of Banca Nazionale del Lavoro (BNL)
    provided to the government of Iraq between 1985 and 1990. The
    Committee's investigation has uncovered the fact that Henry Kissinger
    was on the International Advisory Board of BNL during that same time
    period and that BNL was a client of _Kissinger Associates_.
    
        As you are aware, Mr. Brent Scowcroft and Mr. Lawrence Eagleburger
    were high ranking officials of _Kissinger Associates_ Mr. Scowcroft as
    Vice Chairman and Mr. Eagleburger as President.  _Kissinger
    Associates_ represents many large multinational companies involved in
    various aspects of international trade, including the arms business.
    Since these firms sell their wares worldwide, they often are the
    beneficiaries of U.S. policy towards foreign countries. I am deeply
    concerned over the potential influence Mr. Kissinger may exert over
    the decisions and actions of Mr. Scowcroft and Mr. Eagleburger, and am
    especially troubled by a potential conflict of interest involving Mr.
    Scowcroft.
    
        The NationaI Security Advisor is in a position to strongly
    influence our national security and foreign policies, including the
    U.S. export licensing process. These policies often have a direct
    influence on individual corporations doing business abroad. Until
    October 4,1990, Mr. Scowcroft owned stock in approximately 40 U.S.
    corporations [worth over $1 million --HB] , many of which were doing
    business in Iraq. Those companies received more than one out of every
    eight U.S. export licenses for exports to Iraq. Several of the
    companies were also clients of _Kissinger Associates_ while Mr.
    Scowcroft was Vice Chairman of that firm.
    
        Mr. Scowcroft's stock holding, particularly in corporations that
    are clients of _Kissinger Associates_, present the potential for
    serious conflicts of interest and cause one to question whether or not
    his decisions as National Security Advisor are completely
    disassociated from the interests of his former boss and longtime
    colleague.
    
        Mr. Eagleburger, the current Deputy Secretary of State, as well as
    Mr. Scowcroft, may also be involved in a conflict of interest related
    to their role in promoting military sales abroad. The "Legal Times"
    recently reported that Mr. Eagleburger and Mr. Scowcroft (a lifelong
    Air Force Officer) are strong advocates of using $1 billion in
    Export-Import Bank resources to finance the sale of U.S. military
    articles overseas. The "Legal Times" also reported that Mr. Eagleburger
    actually sent a classfied memorandum to all U.S. Embassies urging that
    U.S. defense firms be given more help selling weapons abroad. Many
    corporations, including Mr. Eagleburger's past employer, the ITT
    Corporation, stand to benefit if the U.S. foreign service is forced to
    take a greater role in selling U.S. military articles abroad. For your
    information, I have attached a copy of the "Legal Times" article
    referring to Mr. Eagleburger's and Mr.  Scowcroft's roles in expanding
    military sales abroad. I am concerned that their attempts to use the
    foreign service and the Export-Import Bank to assist corporations in
    financing military sales abroad may have been prejudiced by their past
    associations.
    
        Mr. Scowcroft's and Mr. Eagleburger's actions seem out of step at
    a time when the U.S. should be leading a worldwide effort to limit
    arms proliferation. The positions held by these men are of the utmost
    importance to the national security of the United States. Persons
    filling such important positions must be independent from past
    associations which could cloud their judgement.
    
        I trust you will consider the issues I have raised in this letter
    and, if necessary, take appropriate action to ensure that potential
    conflicts are eliminated.
    
        Thank you for your time and consideration. With best wishes.
    
               Sincerely,
    
                  HENRY B. GONZALEZ
                                             Chairman
    

[Congressional Record May 2, 1991 H2762-2765]
[Scanned in by Robert Gonsalves, pinknoise@igc.org]
    



    
Date:      Sun, 12 Jul 1992 05:00:04 EDT
Reply-To:  Activists Mailing List <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>
From:      Harel Barzilai <harelb@math.cornell.edu>
Subject:   Secret Loans to Iraq: Scowcroft Conflict of Interest
To: Multiple recipients of ACTIV-L <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>
    
       "Can Mr. Scowcroft be providing the President with independent
      judgement given those circumstances?"
    
    
    ...More from Banking Committee Chairman, Rep. Henry Gonzalez...
    
    
              =================================================
              S C O W C R O F T   S T O C K   O W N E R S H I P
              =================================================
    
    
        The BNL scandal is not the only instance of Kissinger Associates
    affiliations having had the potential of placing Mr.  Scowcroft in a
    potential conflict of interest situation involving U.S. national
    security and foreign policy.
    
        Last week I noted that Brent Scowcroft joined Mr. Kissinger in
    setting up _Kissinger Associates_ in 1982. Mr. Scowcroft served as
    vice chairman of _Kissinger Associates_ until being appointed as
    National Security Advisor to President Bush in January 1989.  In that
    position, Mr. Scowcroft advises the President on matters involving
    national security including export control policies.
    
        I also revealed last week that Mr. Scowcroft owned stock in
    approximately 40 companies while acting in those capacities for
    President Bush.
    
        These stocks were valued at well over $1 million.
    
        The chart is pretty much self-explanatory. As the chart indicates,
    on October 4,1990, the Office of Government Ethics required Mr.
    Scowcroft to divest some of his stock holdings. But that was almost 2
    years after he took office and several months after the Iraqi invasion
    of Kuwait.
    
    
            MANY LARGE DEFENSE CONTRACTORS
    
    
        Many of the companies Mr. Scowcroft owned stock in are large
    defense contractors. The Department of Defense recently released a
    list of the top 100 prime defense contractors. Mr.  Scowcroft owned
    stock in 11 of these companies including General Electric, General
    Motors, ITT, and Lockheed while acting as the President's National
    Security Adviser.
    
        Several of the companies Mr. Scowcroft owned stock in are reported
    clients of _Kissinger Associates_. These connections raise the
    question of _Kissinger Associates_' influence over the decisions of
    Mr. Scowcroft as well as the issue of whether or not Mr. Scowcroft can
    remain independent from the interests of his former boss and longtime
    colleague Henry Kissinger.
    
        I am deeply concerned by Mr. Scowcroft's stockholdings,
    particularly those in corporations that are clients of Kissinger
    Associates. Given the position of Mr. Scowcroft, his stockholdings
    present the potential for serious conflicts of interest.
    
        As an example consider that together, the companies he owned stock
    in received over one in every eight United States export licenses for
    sales to Iraq. No doubt these companies benefited from United States
    policy toward Iraq. Mr. Scowcroft was instrumental in setting and
    carrying out that policy and, at the same time owned stock in
    companies benefiting directly from that same policy. Can Mr. Scowcroft
    be providing the President with independent judgement given those
    circumstances?
    
    [From Banking Committee Chairman, Rep. Henry Gonzalez...]
    
[Congressional Record May 2, 1991 H2762-2765]
[Scanned in by Robert Gonsalves, pinknoise@igc.org]
    
    




Date:     Mon, 13 Jul 1992 05:00:04 EDT
From:     Harel Barzilai <harelb@math.cornell.edu>
Subject:  Secret Loans to Iraq: Background on NSC
To: Multiple recipients of ACTIV-L <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>

       "Bundy and Kissinger transformed the position [National Security
       Advisor] from one of coordinator and administrator to one of
       policy advocate, personal adviser, spokesman and negotiator for
       national security issues.
     
               ==============================================
               BACKGROUND ON NATIONAL SECURITY COUNCIL  [NSC]
               ==============================================
     
         In order to better understand these issues it would help to learn
     more about the role Mr. Scowcroft plays in setting, coordinating, and
     carrying out the national security and foreign policies of the United
     States. As we will see, the NSC can have considerable influence over
     an individual company's ability to obtain an export license to sell
     goods abroad.
     
         During his tenure at _Kissinger Associates_, Mr. Scowcroft was
     appointed by President Reagan to various special commissions on
     national security issues. One such appointment was to the President's
     Special Review Board. The President directed the Board to examine the
     proper role of the National Security Council staff in the development,
     coordination, and conduct of foreign and national security policy
     following the Iran-Contra scandal. The following background on the NSC
     is taken from that report.
     
         The National Security Council was established by the National
     Security Act of 1947. The NSC functions as an advisory body to the
     President on national security issues and to improve coordination
     between the military service and other executive departments. The
     President is the head of the NSC with other members being the Vice
     President, the Secretary of State, and the Secretary of Defense.
     
         Statutory advisers to the NSC include the Chairman of the Joint
     Chiefs of Staff, the Director of the Central Intelligence Agency, and
     the Director of the Arms Control and Disarmament Agency. Other members
     of executive branch agencies may serve as de facto members of the NSC
     at the invitation of the President.  All members are supposed to
     provide their best advice to the President, not merely serve as
     advocates for their own bureaucracies.
     
         Perhaps the greatest misconception regarding the NSC is that the
     Assistant to the President for National Security Affairs, commonly
     referred to as the National Security Adviser, is not a formal member
     of the NSC. There is no legislative provision for Mr. Scowcroft's
     present position.
     
         Originally, under President Eisenhower, the National Security
     Adviser served as the executive secretary of the NSC, setting the
     agenda, briefing the President, and supervising staff. It was not
     until President Kennedy, with McGeorge Bundy, and also President
     Nixon, with Henry Kissinger, that the National Security Adviser took
     on its current role. Bundy and Kissinger transformed the position 
     from one of coordinator and administrator to one of policy advocate,
     personal adviser, spokesman and negotiator for national security
     issues.
     
         The National Security Act also established a National Security
     Staff. The role and size of the staff has changed considerably since
     1947, but has come to serve the dual role of coordinating and
     monitoring the implementation of national security policy as well as
     providing independent advice, options, and ideas to the President. 
     Mr. Scowcroft is the current Director of the NSC staff.  The role of 
     the NSC staff received its greatest notoriety from the actions of
     felonious staff member Oliver North.
     
     "...Jorge Chavarria, a senior prosecutor charged with overseeing an
     investigation of La Penca for the Costa Rican Attorney General, 
     issued a preliminary investigative report exposing a conspiracy of 
     espionage, drug trafficking, and murder carried out by U.S., 
     Panamanian, and Costa Rican officials acting for the CIA (2).  [...]
     
     "Many of those named by Chavarria were previously named in a report
     last year by a Costa Rican Legislative Commission investigating drug
     trafficking (8). The Commission concluded that the arms supply 
     network set up by the National Security council, the CIA, and Oliver 
     North to supply Nicaraguan contras in Costa Rica soon turned into a 
     drug trafficking operation. As a result of the Commission's findings, 
     the costa Rican Cabinet last year declared Owen, former CIA station 
     Chief Joe Fernandez, former Ambassador Lewis Tambs, North's, and 
     former National security Advisor John Poindexter *persona non grata* 
     in Costa Rica."
     
     
[Congressional Record May 2, 1991 H2762-2765]
[Scanned in by Robert Gonsalves, pinknoise@igc.org]
     
     



Date:       Tue, 14 Jul 1992 05:00:04 EDT
From:       Harel Barzilai <harelb@math.cornell.edu>
Subject:    Secret Loans to Iraq: Background: NSC Influence over Exports
To: Multiple recipients of ACTIV-L <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>


               NSC INFLUENCE OVER EXPORT LICENSING FOR IRAQ
     
    
        One of the responsibilities of the NSC is to ensure that the
    national security decision directives issued by the President are
    properly carried out. Take for example the case of Iraq. Both
    Presidents Bush and Reagan were determined to improve relations with
    Iraq[i Murderous but then-Obidient Dictator, Saddam Hussein], and both
    considered the best way to achieve that goal was to expand trade with
    Iraq. Since trade was the foundation on which improved relations were
    to be achieved, increased importance was placed on the export
    licensing process.
    
        The export licensing process controls the export of U.S. goods
    and technical data in order to achieve certain national security and
    foreign policy goals. For example, in order to protect our national
    security, the export licensing process is used to limit the export of
    sophisticated United States computer technology to the Soviet Union
    that could be used to improve weapons systems. In the case of export
    licensing, the National Security Act of 1947 and subsequent
    legislation, provide the President, through the National Security
    Council [NSC], with ample authority to establish policies on export
    controls.
    
        To get a feel for the NSC's role in achieving the President's
    objective regarding Iraq, we can look to the comments of Paul
    Freedenberg. He was the chief export licensing official at the
    Commerce Department during the latter half of the Reagan years and the
    beginning of the Bush administration.
    
        Mr. Freedenberg recently testified that Iraqi use of poison gas
    against the Kurds, as well as the Iranians, did not suppress the zeal
    of the NSC to approve technology transfers to Iraq. In testimony
    before Congress he stated:
    
          In the summer of 1988, a number of licenses were pending
      with regard to technology transfer to Iraq. I asked for official
      guidance with regard to what the licensing policy would be towards
      Iraq since by that time there was credible evidence of the use of
      poison gas by the Iraqis against their own people and also against
      the Iranians. I suggested that the imposition of foreign policy
      controls be considered as a way of justifying the denial of export
      licenses to Iraq. I was told by the National Security Council that
      the licensing policy with regard to Iraq was that of normal trade
      and that under normal circumstances and that I should clear the
      licenses that were pending. I passed that information on to my
      licensing officers and the few dozen licenses that were pending at
      that time were approved and licenses were issued for exports to
      Iraq.
    
        This provides clear insight into the power of the NSC and points
    to the influence it can have over the export licensing process. Yet
    another example is provided by Dr. Stephen D. Bryen, former Deputy
    Under Secretary of Defense for Trade Security Policy and Director of
    Trade Technology Security Administration [DTSA]. DTSA helps review
    export licenses to determine if exports should be denied because of
    their potential military applications.
    
        While testifying before the Banking Committee, Dr. Bryen stated:
    
          Generally speaking, the Defense Department's strongest
      objections for Iraq concerned the potential use of exported goods
      for Iraq's nuclear program, for missile testing and construction,
      and for chemical and biological weapons development. In most cases
      when we raised these issues we ran into strong opposition from the
      State and Commerce Departments.  In July 1987, at the urging of
      the State Department, the National Security Council directed DTSA
      to be more forthcoming with respect to Iraq. The NSC singled out a
      number of cases DTSA held up, and urged us to revisit them. We
      decided, in all but two or three cases identified by NSC to stick
      by our guns and not give in because we had evidence the technology
      was going into strategic military programs.
    
        While Mr. Scowcroft was not the NSC Director at the time of the
    above incidents, you can get a feel for the enormous influence the NSC
    can exercise over individual export licensing decisions.
    
        The NSC provides crucial input into the President's foreign policy
    and national security decisions. These decisions often affect trade
    between the United States and foreign nations, which in turn affects a
    corporation's ability to sell its goods overseas. As the Iraq example
    illustrates, the NSC can exercise considerable sway over export
    licensing decisions the directly determine whether or not a
    corporation's export license is approved. This is one of the prime
    reason Mr. Scowcroft's stock ownership presents the potential for a
    conflict of interest.
    
        Mr. Scowcroft's past affiliation with _Kissinger Associates_ also
    raises the question as to whether or not Mr. Scowcroft can truly
    provide independent advice to the President in matters of national
    security or foreign policy when those policies can run against the
    interest of corporations that he owns stock in or that are affiliated
    with _Kissinger Associates_.
    
[Congressional Record May 2, 1991 H2762-2765]
[Scanned in by Robert Gonsalves, pinknoise@igc.org]
    
     




Date:     Wed, 15 Jul 1992 05:00:04 EDT
From:     Harel Barzilai <harelb@math.cornell.edu>
Subject:  Secret Loans to Iraq: Scowcroft/Eximbank Military Sales & Conclusion
To: Multiple recipients of ACTIV-L <ACTIV-L%MIZZOU1.BITNET@pucc.Princeton.EDU>

       "The fact that Mr.  Scowcroft was even involved in a decision to
       promote military sales while he owned stock in several huge
       defense contractors strikes me as being a conflict of interest.

                  =====================================
                  SCOWCROFT AND EXIMBANK MILITARY SALES
                  =====================================

        Last week I placed in the RECORD a "Legal Times" article that
    illustrated how Mr. Scowcroft and Mr. Lawrence Eagleburger have been
    instrumental in formulating the recent administration proposal to use
    $1 billion in Export-Import Bank credits to sell defense articles
    overseas.
    
        This week I revealed that Mr. Scowcroft until very recently owned
    stock in many of our largest defense contractors. The fact that Mr.
    Scowcroft was even involved in a decision to promote military sales
    while he owned stock in several huge defense contractors strikes me as
    being a conflict of interest.
    
        The President's proposal to use the Export-Import Bank to finance
    military sales is an example of a policy decision that has the
    potential to directly benefit corporations Mr. Scowcroft owns stock in
    or that are affiliated with _Kissinger Associates_.
    
                             ===================
                             C O N C L U S I O N
                             ===================
    
            To summarize, I am deeply concerned that Mr. Scowcroft's
    stockholdings, particularly in corporations that are clients of
    _Kissinger Associates_, present the potential for serious conflicts of
    interest. These stock-holdings also raise the question of _Kissinger
    Associates_ influence over the decisions of Mr. Scowcroft and whether
    or not Mr. Scowcroft can remain independent from the interests of his
    former boss and longtime colleague. I will be writing President Bush
    to express my concern over these issues.
    
    [From Banking Committee Chair, Rep. Henry Gonzalez]
    
[Congressional Record May 2, 1991 H2762-2765]
[Scanned in by Robert Gonsalves, pinknoise@igc.org]
    
    

--

   I see in the near future a crisis approaching that unnerves me and causes 
   me to tremble for the safety of my country. . . .  Corporations have been 
   enthroned, an era of corruption in high places will follow, and the 
   money-power of the country will endeavor to prolong its reign by working 
   upon the prejudices of the people until the wealth is aggregated in a few
   hands and the Republic is destroyed.

              --- Abraham Lincoln (quoted in Jack London's "The Iron Heel").


----- End Included Message -----
Newsgroups: ca.politics