Philip Geyelin

Kissinger Sees
The Confusion

As Jeane Kirkpatrick might put it, the Reagan Republicans always blame the U.S. Congress first. When it's not President Reagan pounding the table for the benefit of the president of Honduras, it's Secretary of State George Shultz lambasting the lawmakers for paralyzing U.S. policy in Nicaragua.

The administration has a point. "Micro-management by a committee of 535 independent-minded individuals," as Shultz once said, "is a grossly inefficient and ineffective way to run any important enterprise." "Surely," the secretary went on, "there is a better way." Indeed, there is. Try this: "We have to make a fundamental decision with respect to Nicaragua. First, what is it we actually want to achieve? . . . We have to make sure that we know what our objective is and that we then select the means that are appropriate to that objective."

That's Henry Kissinger talking, in a recently published interview that deserved more attention than it got, the more so since Kissinger was Ronald Reagan's hand-picked choice to head up the bipartisan commission on Central America.

True to form, Kissinger held Congress "largely responsible" for whatever's wrong. But consider his next, pregnant sentence: "I think the administration is also partly to blame in its inability to make up its mind on its objectives and on its views and to put its objectives to the American public in a manner that the American public can grasp." He adds: "I think there is no precise relationship between

the rhetoric we put forward and the measures we are taking." He accepts the rhetoric, but he can't figure out what objectives it is supposed to achieve.

He is baffled by whether the administration wants "a reduction of [the Sandinistas'] military and intelligence capability and elimination of the Cuban forces" or "a transformation of the government." If it's the latter, he is still less clear in his mind about whether it is "enough for us that the Sandinistas maintaining power permit some democratic opposition, or do we actually want the Sandinistas to be overthrown?"

He is downright scornful of the administration's program for supposedly covert aid to the Nicaraguan counterrevolutionary forces (the so-called contras). If the administration is serious about the "vital interest" it sees in Nicaragua, Kissinger argues, "it is absolutely unclear to me how a vital interest can be served by a $14 million project. If that were all there is to it, you could go to a foundation and get the money." So what would he do? "Absolutely nothing for about four weeks." He would then "design a strategy and explain it to the American public, and then take a comprehensive series of steps, not stopping until we have achieved them."

When Henry Kissinger is saying that the administration "has to make up its mind because if it does not, it may wind up with the worst of all worlds," you have to have some sympathy with congressional critics, including some Republicans, who are saying much the same thing. This is all the more the case when Kissinger goes on to question whether the administration and the president are even capable of making "long-range strategic decisions that relate various aspects to each other."

If they aren't, then the question is not whether Congress is a poor practitioner of foreign policy but whether Congress should be castigated for not giving the administration what it wants when the administration is unable or unwilling to say clearly what it wants it for.

Simon Inc.

By ANN CRITTENDEN

"I'm called a Wall Street millionaire, or a millionaire bond trader, in every story written about me," the multimillionaire financier complained. "It's as if making money had become pejorative. Big is bad, and all that. But I am what I am and I'm not ashamed of it."

Pacing past the view from his 32d floor office at Blyth, Eastman Dillon & Company Inc. during a recent interview, a shirt-sleeved Bill Simon excluded the confidence and well-being of the very well-off. A former Secretary of the Treasury under Presidents Nixon and Ford, whose acknowledged culture hero is Horatio Alger, he has probably made more money than any other retired member of government. Other former officials, like W. Averell Harriman, may be richer, but they were rich to begin with. In contrast, William E. Simon embodies the old American dream of self-made success

and the new American skill at parlaying high office into high finance.

He is reluctant to talk about just exactly how much he is worth. A direct inquiry is turned aside with a cheerful "You're not going to get any financial information out of me." But financial associates advise that his assets are between $10 million and $20 million.

In addition to the income from that tidy nest egg, he sits on five corporate boards and he gets fees from three major consultancies — Blyth, the management consulting firm of Booz, Allen & Hamilton and the accounting firm of Arthur Andersen & Company. These activities put at least another $500,000 into Mr. Simon's bank account every year. And that doesn't count the roughly $200,000 in royalties from his best-selling book "A Time for Truth," which have all been turned over to Mr. Simon's alma mater, Lafayette College.

The money has been translated into a life style that Gatsby might have

*Continued on Page 11*

Fred Marshall

## Rity Status Into Gold

lation of the public's ignorance or limited memory."

Why Schlosser hired Kissinger without consulting his news division is a topic of speculation. Their admiration for each other is unquestioned. In 1974, when Schlosser received an award from the National Conference of Christians and Jews, the then Secretary of State Kissinger called him:

> "A man of unsurpassed preeminence in his field" who, "as head of one of the world's largest communications networks, has placed his imprint upon its coverage and programs—serious, responsible, penetrating, fair."

Those close to the news scene at NBC say that Schlosser was slipping in 1977 and brought in Kissinger to demonstrate his closeness to the mighty, to show off his friend at meals with the powers that be at RCA.

> "I think that's ridiculous," snapped Schlosser, who is now an RCA executive vice president in charge of developing software, meaning content for the company's videodisc or record-picture combination.

> "CBS was actively interested," Schlosser said. "Lunches and dinners with Kissinger had nothing to do with it."

At least some newsmen at NBC are unhappy that so much of their budget is spent on a non-professional, Kissinger has little time for this complaint.

> "There's the myth that only reporters are objective," he said. "That's not self-evident. It is not clear to me why a former secretary of state is any less objective than a reporter."

Whether he constitutes the best use of limited NBC News resources is "a question for the organization to decide. It is not a debate I would care to join," he said.

Quantifying Kissinger's pay for all this is more of an art than a science. Apart from his own reluctance and that of his employers to talk of such vulgar matters, there are accounting difficulties. For example, how much of a cost is involved in NBC's guarantee that Kissinger will lose no money on his purchase of an apartment in New York's expensive River House? As Kissinger himself points out, "It can't happen anyway" — a plausible forecast for the future of Manhattan real estate.

He vigorously disputes a suggestion that his Chase pay is $80,000, — "that is orders of magnitude high"—but will not discuss the $60,000 proposed here. He contends that the Goldman Sachs figure of $160,000 is "high," although an official of the firm itself says that the number is nearer $200,000 than $100,000. Kissinger flatly refused to hear the $1 million a year figure proffered by sources with an intimate knowledge of NBC's 1977 news budget.

The three jobs, with their estimated

pay of $1,220,000, take only a quarter of his time, Kissinger says.

Kissinger's total income is known only to him, his accountant and the Internal Revenue Service. His book will bring him several million dollars. He speaks, for a price, about 10 times a year. The price used to be $10,000 a time. Now, he suggests, it is what the traffic will bear. But, he adds he also speaks without pay for such worthy causes as the Cedars of Lebanon Hospital, American Jewish Committee, the New York City Ballet and the Republican Party.

He says he gives about two free speeches for each paid talk. "I act as the attraction," he explains, "for people to make contributions."

He also is a paid consultant to the British General Electric Corp. He earns tens of thousands of dollars from Georgetown University, its Center for Strategic and International Studies, and the Aspen Institute for Humanistic Studies, a think tank run by Robert O. Anderson of the Atlantic Richfield Co.

Kissinger also received an undisclosed sum for promoting gold and silver medallions of historical figures that were sold by a company called the Franklin Mint.

> "This was not an exercise I would care to repeat," he says. "I thought it [Franklin] had quasi-public service status."

This was the kind of an error that only a man unversed in business could have made. Franklin Mint of Franklin Center, Pa. is listed on the New York and London stock exchanges. The company did $265.7 million worth of business last year and, as Norman Braun, its chief of public affairs says, "we are a commercial firm."

Kissinger's pay from the banks and NBC give him more than the highest paid corporate executive in the United States, Henry Ford, who earned $1,056,000 in his final year as chairman of the family auto concern. But Kissinger, unlike corporate executives, does not have the opportunity to buy shares in his own company at prices below their market value.

Kissinger also points out that he has large expenses. Paying detectives to guard his life, he says, takes all his salary from Goldman Sachs. And he has to pay lawyers to fend off nuisance suits, although the government defends him against those brought by individuals he allegedly had wire-tapped while he was in office.

Moreover, Kissinger inspires at least some of his employers in ways unknown to most corporate executives.

A man at Chase who regularly hears Kissinger at the semi-annual seminars paid him this tribute:

> "He takes the discussion from the stultifying atmosphere of numbers and statistics and economic trends. He is able to catapult issues and the discussion better than most into the real world in which we all live."

# Kissinger the Alchemist

## Turning His Celebrity Status Into Gold

By Bernard D. Nossiter

Washington Post Staff Writer

For a man who professes lofty disdain for commerce, Henry Kissinger has managed to secure handsome paychecks from some of the nation's most notable commercial organizations and for work that defies close definition. As a consultant-performer for Goldman Sachs, the big investiment bank, as well as Chase Manhattan, the giant commercial bank and NBC, the television network, the former secretary of state appears to be drawing better than $1,000 an hour for his celebrated time.

All three firms, moreover, express— with varying degrees of enthusiasm— their satisfaction with the arrangement. If there are misgivings, Kissinger has none. “My role is to respond to their requests,” he says.

Exactly what he does and does not do for his daily bread, Kissinger described this way in a conversation at his Washington office:

“I’m prepared to advise on foreign

policy consequences, the environment in which they operate. I am not prepared to open doors or engage myself in commercial operations, in commercial deals or exploiting the contacts I have.

“I do not intervene with the government—use my contacts on behalf of commercial clients . . . because I could no doubt get multiples of your estimates (this reporter’s calculation of Kissinger pay) if I did.”

Even the most skeptical people in Wall Street and Madison Avenue—to say nothing of Kissinger's employers —agree that he has not exploited his friendships with the world's great to bring business to the banks or news scoops to NBC.

Instead, it is said, Kissinger has traded on his undoubted glamor to flatter executive egos and attach clients more closely to the two banks. As an internationally famous banker in a rival firm put it:

“There’s a lot of snow in this busi-

See KISSINGER, A3, Col. 1

ies, highlights, and the week's program listings.

PARADE—Frank McNulty won $128,000 in the Irish Sweepstakes, then spent over four years in jail for refusing to pay taxes on his winnings to the U.S. government. Also, Personality Parade and Intelligence Report.

CRIMINAL LAW—The Supreme Court, is a mockery of justice, since the record of discrimination at the factory involved never got into the court record.

Page C1

MINE SAFETY—Pressures to shift from nuclear power to coal will result in more deaths and injuries to miners unless safety standards are improved.

Page C1.

Index to Other Features

<table><tbody><tr><td>Ann Landers</td><td>Page F2</td></tr><tr><td>Bridge</td><td>Magazine, Page 30</td></tr><tr><td>Buchwald</td><td>Page F1</td></tr><tr><td>Chess</td><td>Magazine, Page 30</td></tr><tr><td>Cohen</td><td>Page B1</td></tr><tr><td>Coins</td><td>Page F10</td></tr><tr><td>Consumer</td><td>Page H7</td></tr><tr><td>Crossword</td><td>Magazine, Page 28</td></tr><tr><td>Denlinger</td><td>Page D1</td></tr><tr><td>Dining</td><td>Magazine, Page 32</td></tr><tr><td>Earthman</td><td>Page H1</td></tr><tr><td>Editorial</td><td>Page C6</td></tr><tr><td>Fashion Notes</td><td>Page F3</td></tr><tr><td>Gardens</td><td>Page G9</td></tr></tbody></table>

<table><tbody><tr><td>Health</td><td>Page F11</td></tr><tr><td>Horoscope</td><td>Page F11</td></tr><tr><td>Kindred</td><td>Page D1</td></tr><tr><td>Movie Directory</td><td>Page L6</td></tr><tr><td>Music</td><td>Page L1</td></tr><tr><td>Nutrition</td><td>Page F10</td></tr><tr><td>Radio Highlights</td><td>Page L8</td></tr><tr><td>Recordings</td><td>Page L2</td></tr><tr><td>Rowen</td><td>Page E1</td></tr><tr><td>Showtimes</td><td>Page L8</td></tr><tr><td>Sound</td><td>Page L10</td></tr><tr><td>Stamps</td><td>Page F10</td></tr><tr><td>Theater</td><td>Page L3</td></tr><tr><td>TV Information</td><td>Page L6</td></tr></tbody></table>

Kissinger the Alche

KISSINGER, From A1

ness, especially about meeting a cele-
rity. This business is pretty mythical.
Kissinger can't do a thing for Gold-
man Sachs except add a little tone.
He'll have drinks or lunch with a cus-
tomer who'll go home and say, "I had
lunch with my banker—and Henry
Kissinger—today.' "

Kissinger's task at NBC is more per-
former than consultant. The network's
log indicates he has put in about 380
minutes of airtime over 98 weeks, col-
lecting nearly $5,000 a minute or even
more than Barbara Walters.

All figures of Kissinger's pay are es-
timates, based on guarded chats with
his employers, friends and persons in-
side the organizations who did not
want to be identified.

Kissinger himself declines to dis-
cuss money matters. "I just don't
think it's anybody's business," he said.
"I think I'm entitled to a minimum of
privacy."

A box score would probably look like
this:

* Goldman Sachs. He meets "our best clients, good clients" in the words of John Whitehead, the firm's co-chairman, for breakfast and dinner, perhaps once a month. Pay, about $160,000 a year.

* Chase Manhattan. He presides over an extended weekend seminar with "very good customers"—the phrase is from A. Wright Elliott, senior vice president for communications —every six months. Pay, about $30,000 a seminar or $60,000 a year.

* NBC. He was hired, according to Herbert Schlosser, then but not now NBC's president, to "give us more in-depth advice, coverage and expertise..." Instead, Kissinger has appeared in 49 morning and evening news shows, three of what television calls "instant specials" and one 90-minute survey of Eurocommunism. Pay, in cash and kind about $1 million a year.

Whatever insights on world events
that Kissinger provides his audiences
— "Mostly he is alerting our corpo-
rate clients to possible dangers they
might not have foreseen," says White-
head of Goldman Sachs — the essen-
tial ingredient to his success in the
supposedly hard-headed business
world is his own remarkable persona.

The Holiday Outlook

Metropolitan area's 1,500 gas stations with a higher proportion of them in New York City, according to the American Gas Association, had 25 per cent of the area's gas stations open tomorrow, Memorial Day, the AAA

gasoline was available 24 hours a day, 24 hours a week, no spikes and major highways.

leaving Washington was normal and overcast weather, according to

over the Chesapeake Bay Bridge on Sunday. Ocean City was "basically normal" with no backups," an official at the bridge

seem to have ignored the gas price increase of the weekend, according to the

Williamsburg, Va., a spokesman said Sunday. "Traffic is coming in on a normal Sunday, and there are just as full as last year," said

9 a.m. to 6 p.m. (Pentagon closed.)

RY!
UR
ANNUAL

Kissinger is a modern alchemist who has found the philosopher's stone. He has turned the sheer gossamer of celebrity into golden coin of the realm.

His large, L-shaped office on the 10th floor of the International Club Bldg. here reflects his awareness of his own phenomenon. The walls are lined with photos of Kissinger and the great — Kissinger lecturing Harold Macmillan, Kissinger smiling with Golda Meir, solo portraits of Sadat and Schmidt for variety, a photo-cartoon montage of Kissinger's favorite secretary of state in the outer corridor.

To be sure, there is a human touch as well. An oil portrait of his wife, Nancy, dominates one wall and she is also favored in two color photos.

The mystic aura is established, however, as soon as you step off the elevator at the unmarked entrance to Kissinger's suite. A visitor must announce himself on a telephone outside the entrance before he is admitted to the secretaries who guard the door.

It is suggested to Kissinger that non-monarchal societies require monarch-surrogates, figures endowed with extraordinary importance about whom there is endless and consuming curiosity. Athletes, actresses and rock singers are somehow not engaged in activities of sufficient weight to play this role for long periods. But he and the widow Onassis do.

He considers this, nods solemnly, and shrewdly asks, "What about Teddy Kennedy?"

In some ways, his labors at breakfast and dinner for Goldman Sachs — lunches, he says, are reserved for writing his memoirs — are especially interesting since investment bankers are regarded as the most sophisticated and least sentimental of businessmen.

Kissinger's friend, Alan Greenspan, chairman of the Council of Economic Advisors under Nixon and admirer of the novels of the heroic Ayn Rand, regards the former professor's job with the utmost gravity.

Of Goldman Sachs, Greenspan says:

"They're dealing with hard forecasts, interest rates, money conditions. As an input, they have to be concerned with the underlying geopolitical character of their country's base. If you are lending to an LDC [less developed country, meaning one with little industry], it's helpful to know the degrees of stability. Henry knows more than anybody else."

Is Henry also perhaps a magnet holding Goldman Sachs clients?

"People are invited to little meetings and they are very impressed. A man tells his wife, 'I met Henry Kissinger.' That's part of what he brings to bear. But that wears out quickly."

Kissinger himself thinks it is "con-

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ceiveable" that he is a lure, that his persona "may well be a factor." But he dismisses as sour grapes the contention from competing firms that this is his chief and only value to the bankers. Such judgments, he said, come from firms that "were probably trying to recruit me. I selected the ones least likely to commercialize me."

At the more or less monthly breakfasts and dinners, Kissinger says he typically speaks for 25 minutes and answers questions for another 35. The topic "depends on my mood. Iran was the point of departure last fall." Recently, it has been Asia, and he is just back from a trip to China.

A few days after the interview, he called to strengthen his contribution at Goldman Sachs. He said: "I give a serious analysis of international affairs at great lengths for extended periods."

Kissinger has no doubt he gives good value. As he put it: "The economic decisions of major concerns depend on the political environment in which they operate. They have no analytic competence of their own."

Chairman Whitehead of Goldman Sachs gives the ex-professor high marks in two areas, Iran and France. On Iran, he said, Kissinger, "alerted us to the dangers long before they happened," six months before the shah's overthrow. Moreover, Whitehead said, Kissinger did it "just by reading small items in the press, piecing two and two together and pointing to the deterioration . . . the slippage of the shah's control."

In France, Goldman Sachs wanted to know before last year's legislative elections whether a Communist-Socialist victory would mean the repudiation of foreign loans. Kissinger assured them it wouldn't, a safe forecast since only North Korea has been primitive enough to try such a game and was talked out of it.

At Chase, Kissinger presides over an invention of Chairman David Rockefeller's—the International Advisory Committee, or IAC. This group includes such top customers of the bank as Pehr Gyllenhamer of Volvo, J.R.D. Tata of the huge Indian conglomerate that carries his Parsi name. Henry Ford of Ford, Giovanni Agnelli of Fiat and 16 others.

About nine percent of the metro are expected to be open today, while expected to be in the District of Columbia Automobile Association. Actions are expected to be open today said.

The AAA also reported that gas day on most of the nation's turns

Memorial Day weekend traffic despite the gasoline shortage and state police and other officials.

Traffic Friday and Saturday on the road from Washington to O'ahu for the weekend with no serious injuries said.

Around the nation, Americans shortage in droves for the start of Associated Press.

At Busch Gardens near Willi it looked like a typical Memorial in steadily and hotels in the area the spokesman.

hington 10 a.m. to 6 p.m., our suburban stores

HURR
IT'S O
SEMI

Twice yearly they come to New York or some other center with their wives to meet Kissinger and Rockefeller. Sunday night is social, drinks, and dinner. Monday morning is given over to remarks by Chase officials. As IAC chairman, Kissinger runs round-tables Monday afternoon and Tuesday morning.

Such notables as Treasury Secretary Michael Blumenthal, William Miller, chairman of the Federal Reserve Board, and British Ambassador Peter Jay, entertain at lunch.

The roundtable topics that Kissinger remembers are not those usually associated with his name—"The Impact of Changes in the World Monetary System on Growth," or "Structural Changes in the World Economy."

The IAC's secretary, James Phelan of Chase, insists no notes are kept. He recalls that last year's agenda included discussions of world unemployment and inflation, the outlook for capital investment and the European Monetary Stabilization scheme.

Again, there would seem little scope for Kissinger here. But a Chase director, who asked to remain anonymous, asked: "Can you imagine Henry Kissinger staying quiet for two whole days?"

So Kissinger does hold forth, the director said, on some aspect of foreign policy.

Is one Chase objective to be remembered the next time IAC members float a loan or seek capital abroad?

"I would hope so," says Elliott, the communications chief at the bank.

Isn't Chairman Kissinger a draw to attract such a well-heeled group of seminarists?

"I would think so," was the reply.

Kissinger says he also meets with Chase officers three or four times a year to make "political assessments of the risk—whether to reduce or increase [an investment] position" in countries like Taiwan, Turkey and Iran. This task was not mentioned by two Chase directors or two other executives. Presumably, Kissinger makes these "risk assessments" personally for Chairman Rockefeller, whose family has been supporting Kissinger on and off, even before he left Harvard in 1969 for higher spheres.

On reflection, Kissinger is uneasy with the notion that people listen to him simply because he is celebrated.

"There are many governments who ask my opinion," he said. "There must be some reason people have confidence in my judgment which is not mercenary."

At NBC, enthusiasm for the five-year $5 million contract with Kissinger is distinctly muted. All that Julian Goodman, the retiring chairman of the executive committee, could bring himself to say to Television Digest was:

"I do not think NBC made a bad ar-

Kissinger the Alchemist

By Bernard D. Nossiter

Washington Post Staff Writer

For a man who professes lofty dis-
dain for commerce, Henry Kissinger
has managed to secure handsome pay-
checks from some of the nation's most
notable commercial organizations and
for work that defies close definition.
As a consultant-performer for Gold-
man Sachs, the big investiment bank,
as well as Chase Manhattan, the giant
commercial bank and NBC, the televi-
sion network, the former secretary of
state appears to be drawing better
than $1,000 an hour for his celebrated
time.

All three firms, moreover, express—
with varying degrees of enthusiasm—
their satisfaction with the arrange-
ment. If there are misgivings, Kiss-
singer has none. "My role is to re-
spond to their requests," he says.

Exactly what he does and does not
do for his daily bread, Kissinger de-
scribed this way in a conversation at
his Washington office:

"I'm prepared to advise on foreign

policy consequences, the environment
in which they operate. I am not pre-
pared to open doors or engage myself
in commercial operations, in commer-
cial deals or exploiting the contacts I
have.

"I do not intervene with the govern-
ment—use my contacts on behalf of
commercial clients... because I
could no doubt get multiples of your
estimates (this reporter's calculation
of Kissinger pay) if I did."

Instead, "it is said, Kissinger has
traded on his undoubtedly glamor-
to flatter executive egos and attach
clients more closely to the two banks.
As an internationally famous banker
in a rival firm put it:

"There's a lot of snow in this busi-

See KISSINGER, As, Col. 1.