From: harelb@math.cornell.edu (misc.activism.progressive co-moderator)
Subject: Background to IRAQ-GATE (2)
Organization: misc.activism.progressive on UseNet ; ACTIV-L@UMCVMB
Date: Sun, 11 Oct 1992 20:30:23 GMT


        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 AssociatesQ 
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. many of which were doing 
busies 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 
         
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