From: harelb@math.cornell.edu (misc.activism.progressive co-moderator)
Subject: Background to IRAQ-GATE(5) SCOWCROFT AND EXIMBANK MILITARY SALES
Organization: misc.activism.progressive on UseNet ; ACTIV-L@UMCVMB
Date: Sun, 11 Oct 1992 20:31:55 GMT

        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. 
                 
        CONCLUSION 
         
        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. 
         
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Conf?  


Topic 171       Administration Support of Iraq  Response  6 of  6 
harelb 
elections.usa    1:43 pm  Jul  8, 1992 
(at math.cornell.edu) 

From: harelb@math.cornell.edu (Harel Barzilai) 
Subject: Administration Support of Iraq 


        [From the Financial Times, Apr. 26,1991] 
         
        CONGRESSIONAL INQUIRY: KISSINGER'S FIRM LINKED TO BNL 
         
        (By Alan Friedman and Lionel Barber) 
         
        WASHINGTON.QMr. Henry Kissinger, the former US secretary 
of state who heads the international consulting firm Kissinger 
Associates, had business links with Banca Nazionale del Lavoro 
(BNL), the Italian bank whose branch in Atlanta, Georgia made 
$4bn In unauthorized loans to Iraq, according to the chairman of 
the US House banking committee. 
        BNL's activities in the US are at the center of a 
wideranging congressional inquiry into how US funds were used to 
buy militarily useful US technology and equipment until as late 
as June 1990, a few weeks before the invasion of Kuwait. 
        Mr. Kissinger last night denied knowledge of the improper 
Iraqi loans. He confirmed, however, that he served until early 
this year as a paid member of BNL's International advisory 
board. 
        He resigned the BNL position on February 22, 1991 because of 
the BNL Atlanta scandal. Mr. Kissinger said last night: "I 
didn't have any idea of what BNL was doing In Iraq. All I know 
was what I read in the papers. I resigned earlier this year 
because I don't want to be connected, I don't want to be asked 
about this sort of question". 
        Congressman Henry Gonzalez, the Texan Democrat who is 
investigating the BNL affair, also claimed that Kissinger 
Associates advised US companies exporting to Iraq, several of 
which were BNL financed. 
        Kissinger Associates is an international consultancy with 
blue-chip clients, advising on political and commercial risk. 
Among its early recruits were Mr. Brent Scowcroft, currently 
President George Bush's national security adviser, as well as 
Mr. Lawrence Eagleburger, a veteran diplomat, who currently 
serves as deputy US secretary of state. Both resigned on taking 
office. 
        In a lengthy statement on the floor of the House of 
Representatives, Mr. Henry Gonzalez, chairman of the banking 
committee described how Mr. Alan Stoga. a Kissinger Associates 
executive, met Mr. Saddam Hussein in Baghdad in June 1989. 
        At the meeting, Mr. Saddam apparently expressed interest in 
expanding commercial relations with the US. "Many Kissinger 
Associates clients received US export licenses for exports to 
Iraq. Several were also the beneficiaries of BNL loans to Iraq," 
said Mr. Gonzalez. 
        In response, Mr. Kissinger said his firm "derived no Income 
from Iraq". To his knowledge, Mr. Stoga did not advise Iraq on 
any financial matters, but he recalled that Mr. Stoga told him 
that he was identified at the Saddam meeting "as an expert on 
debt and could advise." 
        Mr. Kissinger, who has rarely spoken about his clients or 
his business, said his firm would not have interceded with the 
US government to secure export licenses for clients, but that 
"it is possible that somebody may have advised a client on how 
to get a license." 
        In his congressional statement Mr. Gonzalez said Mr. 
Eagleburger, who worked for Kissinger Associates until two years 
ago, served on the board of Ljubljanksa Bank (LBS), the Yugoslav 
bank. 
        Mr. Gonzalez said he wished to make clear that he was not 
accusing anyone of any illegalities. 
         
        Stock Holdings of National Security Director Brent Scowcroft 
         
        Stocks  Value of stock(3) 
        Advanced Display Technology.................................B 
        Allegran, Inc. .............................................B 
        Allied Signal, Inc. (1).....................................B 
        ARMCO, Inc. ................................................C 
        AT&T (1) (2)................................................D    
        Bank America Corp. (1)......................................C 
        CSX Corp. ..................................................A 
        DBA Systems, Inc. (1).......................................F 
        E.I. Dupont (1).............................................D 
        First Security Corp. .......................................D 
        General Motors Corp. (1)....................................B 
        General Electric Co. (1)....................................G 
        Great Atl.& Pac. Tea Co. ...................................B 
        Great Amerlcan Communications...............................B 
        Halliburton Company.........................................C 
        Hanson PLC Sponsored ADR....................................E 
        Hewlett Packard Co. (1).....................................D 
        IBM (1) (2).................................................D 
        Intergraph Corp. (1)........................................E 
        International Paper Company.................................B 
        ITT Corp. (1) (2)...........................................B 
        Kimberly Clark (1)..........................................B 
        Lehman Corp.................................................D 
        Lockheed Corp...............................................A 
        McKesson, Inc...............................................B 
        MCN Corp....................................................B 
        Merck & Co. (1).............................................D 
        Minnesota MNG MFG (1) (2)...................................B 
        Mobil Oil Company (1).......................................B 
        Monsanto Company............................................C 
        PacificCorp.................................................C 
        Phillips Petroleum Co.......................................B 
        Pfizer, Inc. (1)............................................D 
        Primark Corp................................................B 
        Questar Corp................................................C 
        Reynolds Metals (2).........................................B 
        Storage Technology CP (1)...................................C 
        Shell TRNS & TR (1) (2).....................................D 
        SmithKline Beackman Corp. (2)...............................A 
        Weyerhaeuser Co. (1)........................................D 
        Westinghouse Electric (1)...................................D 
        Wicor, Inc..................................................B 
        Xerox Corp. (1).............................................D  
        Washington BanCorp..........................................F 
         
        Notes: 
        (1) On October 4, 1990, the Office of Government Ethics 
                required divestiture of these stocks. 
        (2) Held by Spouse 
        (3) Value of Holding:  
        A= under $1,001,       
        B=$1,001-5,000,       
        C=$5,001-15,000      
        D=$15,001-50,000,       
        E=$50,001-100,000,       
        F=$100,001-250,000,      
        G=over $250,000. 
        Source: Brent Scowcroft Financial Disclose Report Office of 
                Government Ethics  (202) 523-5757. 

Conf?