by Praptap Chatterjee
Wednesday, Jul. 04, 2001 at 8:47 AM
Chatterjee's review of CIA involvement with business activity follows.
error perhaps a bit dated ( 6 years ), but this may give an idea of some of the BS related to Colombia as well. ###
Covert action and political clout help Enron win contracts Date: 1995/08/05
Covert action and political clout help Enron win contracts By Pratap Chatterjee
WASHINGTON, Jul 31 (IPS) - What links Enron, the largest natural gas company in the United States, the Central Intelligence Agency (CIA), the Pentagon and the fast-growing energy markets of developing countries around the world? If you said covert intelligence operations to support Washington's aggressive pursuit of emerging markets and a network of ''good old boys'' who have long helped each other in and out of government, you probably got it right. Consider the facts. Houston-based Enron was the one of the first companies to bag lucrative new deals to build private energy projects in both the Philippines and India. One of the Filipino deals was to take over a power plant from the Pentagon, the popular name for the U.S. Defence Department. Enron also bagged two other projects to build power plants in the country. The Indian deal was clinched with the help of the CIA which provided Enron and U.S. government officials with key data on the risks of the project and strategies of possible competitors, according to published accounts. ''A number of U.S. government agencies worked on helping Enron in the Department of Commerce's new advocacy centre. Several of them told me that the CIA had helped them get information, but the Commerce people themselves would not talk about it,'' David Sanger of the New York Times told IPS. Curiously enough, the most senior U.S. diplomat in both countries when the deals were negotiated was the same, Frank G. Wisner. He served as ambassador to the Philippines from 1991 well into 1992. He has presided over the U.S. Embassy in New Delhi since last August. Enron agrees that the ambassador helped it in the final stages of the Indian deal but says it had no contact with him in Manila. ''Enron officials paid a courtesy call on the embassy in Manila, but ...did not meet Wisner until his arrival in India. The U.S. government's assistance for the trip to India was to prepare for (Commerce Secretary) Ron Brown's trip. You must remember that we had been negotiating in India two years before Wisner or Brown arrived,'' says Diane Bazelides, Enron's chief spokesperson. Enron struck a deal to manage a 28-megawatt power plant in Subic Bay, formerly the largest U.S. military base in the region, shortly after Wisner left Manila in July 1992. Enron took over the plant in January, 1993, two months after the last U.S. troops left the base. ''The U.S. embassy staff produced an excellent report on how U.S. business could win contracts in the former base. They had an edge because they knew it so well,'' recalls a senior staffer at the Filipino embassy in Washington. Wisner spent a lot of time after arriving in New Delhi last year helping Enron win a 2.8-billion-dollar deal to build a 2,015-megawatt power plant near the southwestern coastal town of Dhabol, close to Bombay. The deal is now under heavy fire for being over-priced. Allegations of bribery are rife. ''If anybody asked the CIA to help promote U.S. business in India, it was probably Frank. That's his style - take action rather than wait for somebody else to make a decision,'' a former Wisner staffer told IPS. In recent weeks, newspaper reports have claimed that CIA support for U.S. business abroad is now an official priority. On Monday, for example, the Los Angeles Times reported that the Clinton administration has issued a set of rules for the CIA to engage in ''economic espionage'' in keeping with the new, geo-economic mindset of U.S. foreign policy. ''The idea is that an ambasador can call on a chief of station (the top CIA official in a foreign country) to find out who will take the key decisions on the bid, information on competitors, any possible corruption on the part of foreign companies,'' a former US ambassador told IPS. Wisner is himself long acquainted with the CIA and its capabilities. His father was one of its architects and served as a top official there from just after its creation in 1947 until just before his suicide in 1965. As such, he helped oversee the toppling of the Guatemalan government of Jacobo Arbenz for United Fruit company, a family-owned U.S. business, in 1954. He also was involved in the 1953 overthrow of Iranian Prime Minister Mohammed Mossadeq who had threatened to nationalise U.S. and British oil interests, and in secret operations against Indonesian President Sukarno in the mid-1950s. Wisner, Jr. has not been associated with anything quite so dramatic, but he has gone out of his way to promote both U.S. business and military policy. Before his posting to New Delhi, Wisner held the number three position at the Pentagon. During his stint there, Washington actively courted the Indian military. Help from such powerful sources in the elite and secret worlds of this city are commonplace for Kenneth Lay, the chief executive officer and founder of Enron, who started the company soon after quitting the Federal Power Commission, a now defunct government agency here. Lay had worked in the Pentagon during the Vietnam war, when Richard Nixon was president. An economics PhD, his work got him noticed at the senior echelons of the administration. ''Lay understands how government works. He knows who cuts the deals and he makes sure that he knows people in the right places,'' says a Houston journalist who asked not to be named. Lay, whose posh River Oaks home in Houston is a few kms from the Tanglewood residence of George Bush, is a close friend of the former president. Although Bush himself has never been accused of doing favours for Lay, three of his sons have allegedly used their father's name to try and win contracts for Enron. Neil and Marvin Bush were named in an article in the New Yorker magazine by investigative journalist Seymour Hersh as having tried to influence Kuwaiti officials in favour of an Enron bid to rebuild Shuaiba North, a power plant destroyed in the Persian Gulf war. Enron abandoned the bid a year ago. In 1988, George W. Bush, another of the Bush sons who is now governor of Texas, reportedly telephoned Rodolfo Terragno, Argentina's Public Works Minister, to ask him to award Enron a contract to build a pipeline from Chile to Argentina. ''He assumed that the fact he was the son of the president would exert influence. I felt pressured. It was not proper for him to make that kind of call,'' Terragno recently told The Nation weekly magazine. Enron ultimately won the bid under the next government, headed up by Carlos Menem, another Bush friend. In 1987, Neil Bush, a director of the failed Silverado Banking, Savings and Loan Association, which made millions of dollars in high-risk loan, created a subsidiary of his oil company to conduct business in Argentina. The activities of the two Bush children in Argentina prompted a par-liamentary inquiry in that country. ''None of Bush's sons have worked for Enron. I don't know why people keep bringing up these old stories,'' says Bazelides. Two weeks ago, the head of Enron Development Corporation denied at in a press conference in Bombay an IPS report that Enron used political clout to swing deals. ''Enron's reputation is being attacked, and we do not do business under the table,'' said Rebecca Mark. But Enron officials acknowledge that the company used James Baker, Bush's Secretary of State, and Robert Mosbacher, his Commerce Secretary as consultants. Also on the Enron payroll is Thomas Kelly, director of operations for the Pentagon during the Gulf War. Another powerful Enron contact is Wendy Gramm, who joined Enron's board of directors in 1993 after resigning as chair of the Commodity Futures Trading Commission (CFTC) here. Previously, she was a senior staffer in the White House for former President Ronald Reagan. In late 1992 Gramm began proceedings to remove energy futures, a highly specialised financial instrument, from government regulation, based on a petition from Enron and other energy companies. She resigned her job just before the commission agreed to the petition. Today a tenth of Enron's profits are derived from playing this financial market. ''Former associates say that Gramm would not be the first CFTC member to go through Washington's revolving door to work for a company that has issues before the agency,'' Jerry Knight, a Washington Post journalist who tracks these markets, told IPS. ‹‹‹‹‹‹‹‹‹‹‹‹‹‹‹ Spies help sell cars, energy, planes and save the rain forest By Pratap Chatterjee
WASHINGTON, Jul 31 (IPS) - Raytheon, a U.S. company based in Massachusetts, won a 1.4 billion dollar contract from Brazil last July to set up a satellite surveillance system to monitor the destruction of the rain forest.
The deal was clinched after President Bill Clinton made a special appeal on behalf of the manufacturer to the Brazilian government. U.S. officials also helpfully pointed out that Thompson CSF, a French company and Raytheon's main rival in the bid, had bribed local officials.
''Our agents were tipped off about the bribes. We don't think that bribery is a fair way to do business, especially because our laws don't allow us to do that,'' William Colby, a former Central Intelligence Agency (CIA) chief, told IPS.
Earlier in the year the French were also outsmarted in their bid to win a six-billion-dollar deal to modernise Saudia, the Saudia Arabian airline, by the same combination -- CIA information on French bribes followed up by a personal letter from Clinton.
In March 1994, the Saudi government awarded the contract to the U.S. consortium of McDonnell Douglas and Boeing. The French-led Airbus consortium was left out in the cold.
Last week the Los Angeles Times, quoting anonymous CIA sources, announced that CIA help for U.S. business was now official policy.
This is in keeping with the priority the administration has placed on helping U.S. business abroad. It also benefits the CIA which has been trying to justify its post-Cold War existence.
Clinton, according to the Times article, was particularly pleased with the role of the CIA in putting together a daily tip sheet for the U.S. National Economic Council about the Japanese negotiating position in the recent U.S.-Japan spat over cars.
Other examples have been reported although never confirmed. In September 1993, Clinton reportedly asked the CIA to spy on Japanese plans to build a zero-emission vehicle and provide its intelligence to the Big Three U.S. car manufacturers -- Chrysler, Ford and General Motors.
Unlike some of these companies, who probably welcome the CIA help, the French are unhappy. They struck back in February when five U.S. citizens were accused of trying to bribe French government and corporate officials to obtain French technology and trade secrets.
Pamela Harriman, the Washington's ambassador to France, was summoned to the office of Charles Pasqua, the French interior minister, to be reprimanded. Four of the suspects were asked to leave the country. (The fifth had left already.)
But this has not deterred the CIA. The same month the New York Times described how agency officers supplied information to the Department of Commerce to help Enron, the largest natural gas company in the United States, win a contract to build a power plant in Dhabol, India.
Enron was not happy with this publicity. ''We cringed when we saw the article that described the CIA's role. They never gave us any information. For the most part, we have always had more information than the U.S. government,'' says Joseph Hillings, Enron's vice president for federal government affairs.
Enron may indeed have obtained more information, but the CIA is anxious to toot its own horn.
At recent Congressional hearings, the agency claimed that it has helped U.S. businesses win 30 billion dollars in contracts. This figure is quoted by U.S. foreign service officers, who are enthusiastic about the programme.
''The thinking now is that our ambassadors should be able to request the local station chief to get information on key contracts -- information about possible competitors, about any illegal activities such as bribery,'' a State Department source told IPS.
Old CIA hands are not quite so enthusiastic. ''I'm not sure that it's such a good idea. What if two U.S. companies are bidding for the same project? Whom do you favour?'' argues Colby, who now advises large multinational corporations.
McDonnell Douglas and Raytheon are very close to the U.S. government. The two companies are the second and seventh largest recipients of federal contracts. They won a total of 18.1 billion dollars worth of business from the government in 1993.
Both companies have also always had close ties to the CIA and the U.S. military because of the very nature of their business -- more than half of their sales are for war-related activities. Many of their senior officials have worked for either the Pentagon or the CIA at some point in their careers.
But the argument that these companies are decent, law-abiding citizens that need help in competing against unfair foreign business practices is questionable.
In October 1993, Raytheon agreed to pay 3.7 million dollars to the Pentagon to settle charges that it had overcharged the government for Patriot missiles.
In August 1992, Raytheon paid out 2.75 million dollars for overcharging on test equipment for Sparrow, Seasparrow and Sidewinder missiles, and in March 1990 it paid a million dollars for illegal trading in confidential Pentagon documents.
Proponents of CIA cooperation with companies cite the use of foreign intelligence services to help their business.
For example, the French used their intelligence services in the 1970s to obtain U.S. and Soviet plans to sell fighter aircraft to India. Armed with this information, Mirage of France, won a huge contract from India.
The CIA's role in helping U.S. business is not new. In 1954 the CIA orchestrated the overthrow of the democratically elected government led by Jacobo Arbenz to help United Fruit, a family- owned U.S. business, protect its interests in the Central American nation.
In 1953, it moved successfully against Iranian Prime Minister Mohammed Mossadeq when he threatened to nationalise British and U.S. oil investments.
It also worked unsuccessfully with telecommunications giant ITT to try to prevent the election of Chilean President Salvador Allende Gossens in 1970.
U.S. companies have also assisted the CIA in the past, sometimes by permitting it to plant agents among its personnel abroad and volunteering briefings to the CIA's National Collection Division on information collected overseas.
The Paris-based Le Monde newspaper claim that the CIA has 30 of the 80 CIA agents in France operate under ''non-official cover.'' ‹‹‹‹‹ Alex Constantine's Political Conspiracy Research Bin: http://alexconstantine.50megs.com/