The Uncompassionate Conservative
By Molly Ivins
Mother Jones

November/December 2003 Issue

It’s not that he’s mean. It’s just that when it comes to seeing how his policies affect people, George W. Bush doesn’t have a clue.

In order to understand why George W. Bush doesn’t get it, you have to take several strands of common Texas attitude, then add an impressive degree of class-based obliviousness. What you end up with is a guy who sees himself as a perfectly nice fellow — and who is genuinely disconnected from the impact of his decisions on people.
On the few occasions when Bush does directly encounter the down-and-out, he seems to empathize. But then, in what is becoming a recurring, almost nightmare-type scenario, the minute he visits some constructive program and praises it (AmeriCorps, the Boys and Girls Club, job training), he turns around and cuts the budget for it. It’s the kiss of death if the president comes to praise your program. During the presidential debate in Boston in 2000, Bush said, “First and foremost, we’ve got to make sure we fully fund LIHEAP [the Low Income Home Energy Assistance Program], which is a way to help low-income folks, particularly here in the East, pay their high fuel bills.” He then sliced $300 million out of that sucker, even as people were dying of hypothermia, or, to put it bluntly, freezing to death.

Sometimes he even cuts your program before he comes to praise it. In August 2002, Bush held a photo op with the Quecreek coal miners, the nine men whose rescue had thrilled the country. By then he had already cut the coal-safety budget at the Mine Safety and Health Administration, which engineered the rescue, by 6 percent, and had named a coal-industry executive to run the agency.

The Reverend Jim Wallis, leader of Call to Renewal, a network of churches that fight poverty, told the New York Times that shortly after his election, Bush had said to him, “I don’t understand how poor people think,” and had described himself as a “white Republican guy who doesn’t get it, but I’d like to.” What’s annoying about Bush is when this obtuseness, the blinkeredness of his life, weighs so heavily on others, as it has increasingly as he has acquired more power.

There was a telling episode in 1999 when the Department of Agriculture came out with its annual statistics on hunger, showing that once again Texas was near the top. Texas is a perennial leader in hunger because we have 43 counties in South Texas (and some in East Texas) that are like Third World countries. If our border region were a state, it would be first in poverty, first in the percentage of schoolchildren living in poverty, first in the percentage of adults without a high school diploma, 51st in income per capita, and so on.

When the 1999 hunger stats were announced, Bush threw a tantrum. He thought it was some malign Clinton plot to make his state look bad because he was running for president. “I saw the report that children in Texas are going hungry. Where?” he demanded. “No children are going to go hungry in this state. You’d think the governor would have heard if there are pockets of hunger in Texas.” You would, wouldn’t you? That is the point at which ignorance becomes inexcusable. In five years, Bush had never spent time with people in the colonias, South Texas’ shantytowns; he had never been to a session with Valley Interfaith, a consortium of border churches and schools and the best community organization in the state. There is no excuse for a governor to be unaware of this huge reality of Texas.

Take any area — environment, labor, education, taxes, health — and go to the websites of public-interest groups in that field. You will find page after page of minor adjustments, quiet repeals, no-big-deal new policies, all of them cruel, destructive, and harmful. A silent change in regulations, an executive order, a funding cutoff. No headlines. Below the radar. Again and again and again. Head Start, everybody’s favorite government program, is being targeted for “improvement” by leaving it to the tender mercies of Mississippi and Alabama. An AIDS program that helps refugees in Africa and Asia gets its funding cut because one of the seven groups involved once worked with the United Nations, which once worked with the Chinese government, which once supported forced abortions.

So what manner of monster is behind these outrages? I have known George W. Bush slightly since we were both in high school, and I studied him closely as governor. He is neither mean nor stupid. What we have here is a man shaped by three intertwining strands of Texas culture, combined with huge blinkers of class. The three Texas themes are religiosity, anti-intellectualism, and machismo. They all play well politically with certain constituencies.

Let’s assume the religiosity is genuine; no one is in a position to know otherwise. I leave it to more learned commentators to address what “Christian” might actually mean in terms of public policy.

The anti-intellectualism is also authentic. This is a grudge Bush has carried at least since his college days when he felt looked down on as a frat rat by more cerebral types. Despite his pedigree and prep schools, he ran into Eastern stereotypes of Texans at Yale, a common experience at Ivy schools in that time. John F. Kennedy, the consummate, effortlessly graceful, classy Harvard man, had just been assassinated in ugly old Dallas, and Lyndon Johnson’s public piety gave many people the creeps. Texans were more or less thought of as yahoo barbarians somewhere between the Beverly Hillbillies and Deliverance. I do not exaggerate by much. To have a Texas accent in the East in those days was to have 20 points automatically deducted from your estimated IQ. And Texans have this habit of playing to the stereotype — it’s irresistible. One proud Texan I know had never owned a pair of cowboy boots in his life until he got a Nieman Fellowship to Harvard. Just didn’t want to let anyone down.

For most of us who grow up in the “boonies” and go to school in the East, it’s like speaking two languages — Bill Clinton, for example, is perfectly bilingual. But it’s not unusual for a spell in the East to reinforce one’s Texanness rather than erode it, and that’s what happened to Bush. Bush had always had trouble reading — we assume it is dyslexia (although Slate’s Jacob Weisberg attributes it to aphasia); his mom was still doing flash cards with him when he was in junior high. Feeling intellectually inferior apparently fed into his resentment of Easterners and other known forms of snob.

Bush once said, “There’s a West Texas populist streak in me, and it irritates me when these people come out to Midland and look at my friends with just the utmost disdain.” In his mind, Midland is the true-blue heartland of the old vox pop. The irony is that Midland along with its twin city, Odessa, is one of the most stratified and narrow places in the country. Both are oil towns with amazingly strict class segregation. Midland is the white-collar, Republican town; Odessa is the blue-collar, Democratic town. The class conflict plays out in an annual football rivalry so intense that H.G. Bissinger featured it in his best-selling book, “Friday Night Lights”. To mistake Midland, Texas for the volk heartland is the West Texas equivalent of assuming that Greenwich, Connecticut, is Levittown.

In fact, people in Midland are real nice folks: I can’t prove that with statistics, but I know West Texas and it’s just a fact. Open, friendly, no side to ‘em. The problem is, they’re way isolated out there and way limited too. You can have dinner at the Petroleum Club anytime with a bunch of them and you’ll come away saying, “Damn, those are nice people. Sure glad they don’t run the world.” It is still such a closed, narrow place, where everybody is white, Protestant, and agrees with everybody else. It’s not unusual to find people who think, as George W. did when he lived there, that Jimmy Carter was leading the country toward “European-style socialism.” A board member of the ACLU of Texas was asked recently if there had been any trouble with gay bashing in Midland. “Oh, hell, honey,” she drawled, “there’s not a gay in Midland who will come out of the closet for fear people will think they’re Democrats.”

The machismo is what I suspect is fake. Bush is just another upper-class white boy trying to prove he’s tough. The minute he is questioned, he becomes testy and defensive. That’s one reason they won’t let him hold many press conferences. When he tells stories about his dealings with two of the toughest men who ever worked in politics — the late Lee Atwater and the late Bob Bullock — Bush, improbably, comes off as the toughest mother in the face-down. I wouldn’t put money on it being true. Bullock, the late lieutenant governor and W’s political mentor in Texas, could be and often was meaner than a skilletful of rattlesnakes. Bush’s story is that one time, Bullock cordially informed him that he was about to fuck him. Bush stood up and kissed Bullock, saying, “If I’m gonna get fucked, at least I should be kissed.” It probably happened, but I guarantee you Bullock won the fight. Bush never got what made Bullock more than just a supermacho pol — the old son of a bitch was on the side of the people. Mostly.

The perfect absurdity of all this, of course, is that Bush’s identification with the sturdy yeomen of Midland (actually, oil-company executives almost to a man) is so wildly at variance with his real background. Bush likes to claim the difference between him and his father is that, “He went to Greenwich Country Day and I went to San Jacinto Junior High.” He did. For one year. Then his family moved to a posh neighborhood in Houston, and he went to the second-best prep school in town (couldn’t get into the best one) before going off to Andover as a legacy.

Jim Hightower’s great line about Bush, “Born on third and thinks he hit a triple,” is still painfully true. Bush has simply never acknowledged that not only was he born with a silver spoon in his mouth — he’s been eating off it ever since. The reason there is no noblesse oblige about Dubya is because he doesn’t admit to himself or anyone else that he owes his entire life to being named George W. Bush. He didn’t just get a head start by being his father’s son — it remained the single most salient fact about him for most of his life. He got into Andover as a legacy. He got into Yale as a legacy. He got into Harvard Business School as a courtesy (he was turned down by the University of Texas Law School). He got into the Texas Air National Guard — and sat out Vietnam — through Daddy’s influence. (I would like to point out that that particular unit of FANGers, as regular Air Force referred to the “Fucking Air National Guard,” included not only the sons of Governor John Connally and Senator Lloyd Bentsen, but some actual black members as well — they just happened to play football for the Dallas Cowboys.) Bush was set up in the oil business by friends of his father. He went broke and was bailed out by friends of his father. He went broke again and was bailed out again by friends of his father; he went broke yet again and was bailed out by some fellow Yalies.

That Bush’s administration is salted with the sons of somebody-or-other should come as no surprise. I doubt it has ever even occurred to Bush that there is anything wrong with a class-driven good-ol’-boy system. That would explain why he surrounds himself with people like Eugene Scalia (son of Justice Antonin Scalia), whom he named solicitor of the Department of Labor — apparently as a cruel joke. Before taking that job, the younger Scalia was a handsomely paid lobbyist working against ergonomic regulations designed to prevent repetitive stress injuries. His favorite technique was sarcastic invective against workers who supposedly faked injuries when the biggest hazard they faced was “dissatisfaction with co-workers and supervisors.” More than 5 million Americans are injured on the job every year, and more die annually from work-related causes than were killed on September 11. Neither Scalia nor Bush has ever held a job requiring physical labor.

What is the disconnect? One can see it from the other side — people’s lives are being horribly affected by the Bush administration’s policies, but they make no connection between what happens to them and the decisions made in Washington. I think I understand why so many people who are getting screwed do not know who is screwing them. What I don’t get is the disconnect at the top. Is it that Bush doesn’t want to see? No one brought it to his attention? He doesn’t care?

Okay, we cut taxes for the rich and so we have to cut services for the poor. Presumably there is some right-wing justification along the lines that helping poor people just makes them more dependent or something. If there were a rationale Bush could express, it would be one thing, but to watch him not see, not make the connection, is another thing entirely. Welfare, Medicare, Social Security, food stamps — horrors, they breed dependency. Whereas inheriting millions of dollars and having your whole life handed to you on a platter is good for the grit in your immortal soul? What we’re dealing with here is a man in such serious denial it would be pathetic if it weren’t damaging so many lives.

Bush’s lies now fill volumes. He lied us into two hideously unfair tax cuts; he lied us into an unnecessary war with disastrous consequences; he lied us into the Patriot Act, eviscerating our freedoms. But when it comes to dealing with those less privileged, Bush’s real problem is not deception, but self-deception.

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.)

See No Evil: What Bush Didn’t (Want To) Know About 9/11
By Greg Palast
TomPaine.com

Did Our President Spike The Investigation Of Bin Laden?

On my BBC television show, Newsnight, an American journalist confessed that, since the 9/11 attacks, U.S. reporters are simply too afraid to ask the uncomfortable questions that could kill careers: “It’s an obscene comparison, but there was a time in South Africa when people would put flaming tires around people’s necks if they dissented. In some ways, the fear is that you will be neck-laced here, you will have a flaming tire of lack of patriotism put around your neck,” Dan Rather said. Without his makeup, Rather looked drawn, old and defeated in confessing that he too had given in. “It’s that fear that keeps journalists from asking the toughest of the tough questions and to continue to bore in on the tough questions so often.”
Investigators were ordered to “back off” from any inquiries into Saudi Arabian financing of terror networks….

The reports I did based on this information won the California State University School of Journalism’s Project Censored Award in 2002. It’s not the kind of prize you want to win — it’s given to crucial stories that were effectively banned from U.S. airwaves and papers.3 I don’t want any misunderstanding here, so I must emphasize what we did not find: We uncovered no information, none whatsoever, that George W. Bush had any advance knowledge of the plan to attack the World Trade Center on 9/11, nor, heaven forbid, any involvement in the attack.

FBI Document 199I

What we did discover was serious enough. To begin with, from less-than-happy FBI agents we obtained an interesting document, some 30 pages long, marked “SECRET.” I’ve reproduced a couple of pages here (figure 2.1). Note the designation “199I” — that’s FBI-speak for “national security matter.” According to insiders, FBI agents had wanted to check into two members of the bin Laden family, Abdullah and Omar, but were told to stay away by superiors — until September 13, 2001. By then, Abdullah and Omar were long gone from the United States.

Why no investigation of the brothers bin Laden? The Bush administration’s line is the Binladdins (a more common spelling of the Arabic name) are good folk. Osama’s the Black Sheep, supposedly cut off from his Saudi kin. But the official line notwithstanding, some FBI agents believed the family had some gray sheep worth questioning — especially these two working with the World Assembly of Muslim Youth (WAMY), which the file labels “a suspected terrorist organization.” ….

No matter how vile WAMY’s indoctrination chats, they are none of the FBI’s business. Recruitment for terror, however, is. Before 9/11, the governments of India and the Philippines tied WAMY to groups staging murderous attacks on civilians. Following our broadcast on BBC, the Dutch secret service stated that WAMY, “support(ed) violent activity.” In 2002, The Wall Street Journal’s Glenn Simpson made public a report by Bosnia’s government that a charity with Abdullah bin Laden on its board had channeled money to Chechen guerrillas. Two of the 9/11 hijackers used an address on the same street as WAMY’s office in Falls Church, Virginia.

The “Back-Off” Directive and the Islamic Bomb

Despite these tantalizing facts, Abdullah and his operations were A-OK with the FBI chiefs, if not their working agents. Just a dumb SNAFU? Not according to a top-level CIA operative who spoke with us on condition of strictest anonymity. After Bush took office, he said, “there was a major policy shift” at the National Security Agency. Investigators were ordered to “back off” from any inquiries into Saudi Arabian financing of terror networks, especially if they touched on Saudi royals and their retainers. That put the bin Ladens, a family worth a reported $12 billion and a virtual arm of the Saudi royal household, off-limits for investigation. Osama was the exception; he remained a wanted man, but agents could not look too closely at how he filled his piggy bank. The key rule of any investigation, “follow the money,” was now violated, and investigations — at least before 9/11 — began to die.

And there was a lot to investigate — or in the case of the CIA and FBI under Bush — a lot to ignore. Through well-known international arms dealers (I’m sorry, but in this business, sinners are better sources than saints) our team was tipped off to a meeting of Saudi billionaires at the Hotel Royale Monceau in Paris in May 1996 with the financial representative of Osama bin Laden’s network. The Saudis, including a key Saudi prince joined by Muslim and non-Muslim gun traffickers, met to determine who would pay how much to Osama. This was not so much an act of support but of protection — a payoff to keep the mad bomber away from Saudi Arabia….

Clinton Closed an Eye

True-blue Democrats may want to skip the next paragraphs. If President Bush put the kibosh on investigations of Saudi funding of terror and nuclear bomb programs, this was merely taking a policy of Bill Clinton one step further.

Following the 1996 Khobar Towers bombing in Saudi Arabia, Clinton hunted Osama with a passion — but a passion circumscribed by the desire to protect the sheikdom sitting atop our oil lifeline. In 1994, a Saudi diplomat defected to the United States with 14,000 pages of documents from the kingdom’s sealed file cabinets. This mother lode of intelligence included evidence of plans for the assassination of Saudi opponents living in the West and, tantalizingly, details of the $7 billion the Saudis gave to Saddam Hussein for his nuclear program — the first attempt to build an Islamic Bomb. The Saudi government, according to the defector, Mohammed Al Khilewi, slipped Saddam the nuclear loot during the Reagan and Bush Sr. years when our own government still thought Saddam too marvelous for words. The thought was that he would only use the bomb to vaporize Iranians….

In 1997, the Canadians caught and extradited to America one of the Khobar Towers attackers. In 1999, Vernon Jordan’s law firm stepped in and — poof! — the killer was shipped back to Saudi Arabia before he could reveal all he knew about Al Qaeda (valuable) and the Saudis (embarrassing). I reviewed, but was not permitted to take notes on, the alleged terrorist’s debriefing by the FBI. To my admittedly inexpert eyes, there was enough on Al Qaeda to make him a source on terrorists worth holding on to. Not that he was set free — he’s in one of the kingdom’s dungeons — but his info is sealed up with him. The terrorist’s extradition was “Clinton’s.” “Clinton’s parting kiss to the Saudis,” as one insider put it.

This make-a-sheik-happy policy of Clinton’s may seem similar to Bush’s, but the difference is significant. Where Clinton said, “Go slow,” Bush policymakers said, “No go.” The difference is between closing one eye and closing them both.

Blowback and Bush Sr.

Still, we are left with the question of why both Bush Jr. and Clinton would hold back disclosure of Saudi funding of terror. I got the first glimpse of an answer from Michael Springmann, who headed up the U.S. State Department’s visa bureau in Jeddah, Saudi Arabia, during the Reagan-Bush Sr. years. “In Saudi Arabia I was repeatedly ordered by high-level State Department officials to issue visas to unqualified applicants. These were, essentially, people who had no ties either to Saudi Arabia or to their own country. I complained bitterly at the time there.” That was Springmann’s mistake. He was one of those conscientious midlevel bureaucrats who did not realize that when he filed reports about rules violations he was jeopardizing the cover for a huge multicontinental intelligence operation aimed at the Soviets. Springmann assumed petty thievery: someone was taking bribes, selling visas; so he couldn’t understand why his complaints about rule-breakers were “met with silence” at th e Bureau of Diplomatic Security.

Springmann complained himself right out of a job. Now a lawyer, he has obtained more information on the questionable “engineers” with no engineering knowledge whom he was ordered to permit into the United States. “What I was protesting was, in reality, an effort to bring recruits, rounded up by Osama bin Laden, to the United States for terrorist training by the CIA. They would then be returned to Afghanistan to fight against the then-Soviets.”

Clinton hunted Osama with a passion … circumscribed by the desire to protect the sheikdom sitting atop our oil lifeline.

But then they turned their talents against the post-Soviet power: us. In the parlance of spook-world, this is called “blowback.” Bin Laden and his bloody brethren were created in America’s own Frankenstein factory. It would not do for the current president nor agency officials to dig back to find that some of the terrorists we are hunting today were trained and armed by the Reagan-Bush administration. And that’s one of the problems for agents seeking to investigate groups like WAMY, or Abdullah bin Laden. WAMY literature that talks about that “compassionate young man Osama bin Laden” is likely to have been disseminated, if not written, by our very own government. If Abdullah’s Bosnian-operated “charity” was funding Chechnyan guerrillas, it is only possible because the Clinton CIA gave the wink and nod to WAMY and other groups who were aiding Bosnian guerrillas when they were fighting Serbia, a U.S.-approved enemy. “What we’re talking about,” says national security expert Joe Tre nto, “is embarrassing, career-destroying blowback for intelligence officials.” And, he could add, for the presidential father.

The Family Business

I still didn’t have an answer to all my questions. We knew that Clinton and the Bushes were reluctant to discomfort the Saudis by unearthing their connections to terrorists — but what made this new president take particular care to protect the Saudis, even to the point of stymying his own intelligence agencies?

The answers kept coming back: “Carlyle” and “Arbusto.”

While some people have guardian angels, our president seems to have guardian sheiks….

Behind Carlyle is a private, invitation-only investment group whose holdings in the war industry make it effectively one of America’s biggest defense contractors. For example, Carlyle owned United Technologies, the maker of our fighter jets. Carlyle has the distinction of claiming both of the presidents Bush as paid retainers. Dubya served on the board of Carlyle’s Caterair airplane food company until it went bust. The senior Bush traveled to Saudi Arabia for Carlyle in 1999. The bin Ladens were among Carlyle’s select backers until just after the 9/11 attacks, when the connection became impolitic. The company’s chairman is Frank Carlucci, Bush Sr.’s former defense secretary. The average Carlyle partner has gained about $25 million in equity. Notably, Saudi Prince Al Waleed bin Talal bin Abdul Aziz employed Carlyle as his advisor in buying up 10 percent of Citicorp’s preferred stock. The choice of Carlyle for the high-fee work was odd, as the group is not an investment bank. One would almost think the Saudi potentate wanted to enrich Carlyle’s members….

Who Lost the War on Terror?

So who lost the War on Terror? Osama? From his point of view, he’s made the celebrity cutthroats’ Hall of Fame. Where is he? Don’t ask Bush; our leader just changes the subject to Iraq. So we have the 82nd Airborne looking for Osama bin Laden among the camels in Afghanistan when, in all likelihood, the billionaire butcher — now likely beardless — is chillin’ by the pool at the Ritz Carlton, knocking back a brewsky and laughing at us while two blonde Barbies massage his feet.

Bush failed to get Osama. But we did successfully eliminate the threat of Congresswoman McKinney — you remember, the one who dared question ChoicePoint, the company that helped Katherine Harris eliminate Black voters.

Following our BBC broadcast and Guardian report in November 2001, McKinney cited our stories on the floor of Congress, calling for an investigation of the intelligence failures and policy prejudices you’ve just read here. She was labeled a traitor, a freak, a conspiracy nut and “a looney” — the latter by her state’s Democratic Senator, who led the mob in the political lynching of the uppity Black woman. The New York Times wrote, “She angered some Black voters by suggesting that President Bush might have known in advance about the September 11 attacks but had done nothing so his supporters could make money in war.” The fact that she said no such thing doesn’t matter; the Times is always more influential than the truth. Dan Rather had warned her, shut up, don’t ask questions, and you can avoid the neck-lacing. She didn’t and it cost her her seat in Congress.

McKinney’s electoral corpse in the road silenced politicians, the media was mum, but some Americans still would not get in line. For them we have new laws to permit investigating citizens without warrants, and the label of terrorist fellow-traveler attached to groups from civil rights organizations to trade treaty protestors. Yet not one FBI or CIA agent told us, “If only we didn’t have that pesky Bill of Rights, we would have nailed bin Laden.” Not one said, “What we need is a new bureaucracy for Fatherland Security.” Not one said we needed to jail everyone in the Midwest named “Ahmed.” They had a single request: for George W. Bush’s security henchmen to get their boot heels off agents’ necks and remove the shield of immunity from the Saudis.

[Cynthia] McKinney’s electoral corpse in the road silenced politicians, the media was mum, but some Americans still would not get in line.

That leaves one final, impertinent question. Who won?

(see TomPaine.com for entire article including footnotes)

You can also see this article online:

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Copyright (c) Greg Palast. All Rights Reserved

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.)

Bush Ancestor’s Bank Seized by Gov’t
By Jonathon D. Salant
Associated Press

Friday 17 October 2003

WASHINGTON - President Bush’s grandfather was a director of a bank seized by the federal government because of its ties to a German industrialist who helped bankroll Adolf Hitler’s rise to power, government documents show.
Prescott Bush was one of seven directors of Union Banking Corp., a New York investment bank owned by a bank controlled by the Thyssen family, according to recently declassified National Archives documents reviewed by The Associated Press.

Fritz Thyssen was an early financial supporter of Hitler, whose Nazi party Thyssen believed was preferable to communism. The documents do not show any evidence Bush directly aided that effort. His position with Union Banking never was a political issue for Bush, who was elected to the Senate from Connecticut in 1952.

Reports of Bush’s involvement with the seized bank have been circulating on the Internet for years and have been reported by some mainstream media. The newly declassified documents provide additional details about the Union Banking-Thyssen connection.

Trent Duffy, a spokesman for President Bush, declined to comment.

Union Banking was owned by a Dutch bank, Bank voor Handel en Scheepvaardt N.V., which was “closely affiliated” with the German conglomerate United Steel Works, according to an Oct. 5, 1942, report from the federal Office of Alien Property Custodian. The Dutch bank and the steel firm were part of the business and financial empire of Thyssen and his brother, Heinrich Thyssen-Bornemisza, the report said.

The 4,000 Union Banking shares owned by the Dutch bank were registered in the names of the seven U.S. directors, according a document signed by Homer Jones, chief of the division of investigation and research of the Office of Alien Property Custodian, a World War II-era agency that no longer exists.

E. Roland Harriman, the bank chairman and brother of former New York Gov. W. Averell Harriman, held 3,991 shares. Bush had one share.

Both Harrimans and Bush were partners in the New York investment firm of Brown Brothers, Harriman and Co., which handled the financial transactions of the bank as well as other financial dealings with several other companies linked to Bank voor Handel that were confiscated by the U.S. government during World War II.

Union Banking was seized by the government in October 1942 under the Trading with the Enemy Act.

No charges were brought against Union Banking’s American directors. The federal government was too busy trying to fight the war, said Donald Goldstein, a professor of public and international affairs at the University of Pittsburgh.

“We did not have the resources to do these things,” Goldstein said.

Fritz Thyssen broke with the Nazis in 1938 over their persecution of Catholics and Jews, and fled to Switzerland. He later was arrested and spent 1941 to 1945 in a Nazi prison. His brother lived in Switzerland from 1932 to 1947 but continued to operate businesses in Germany.

The new documents were first reported by freelance writer John Buchanan in The New Hampshire Gazette.

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.)

Heir to the Holocaust

Posted By Clamor Magazine
http://www.clamormagazine.org/features/issue14.3_feature.html

(Special thanks to John Loftus, Emmy winning journalist, author and current president of the Florida Holocaust Museum)

While the Enron scandal unfolds, another Bush family business scandal lurks beneath the shadows of history that may dwarf it.
On April 19, 2001, President George W. Bush spent some of Holocaust Remembrance Day in the Capital Rotunda with holocaust survivors, allied veterans, and their families. In a ceremony that included Jewish prayers and songs sung by holocaust victims in the camps, Benjamin Meed, a survivor of the Warsaw ghetto uprising, movingly described to the gathering what he experienced on April 19, 1943.

“I stood outside a Catholic church, which faced the ghetto,” Mr. Meed said, “a young Jewish boy posing as a gentile. As I watched the ghetto being bombarded by the German artillery, I could see many of the Jews of my community jumping out of windows of burning buildings. I stood long and mute.”

The survivor concluded his reminiscence saying, “We tremble to think what could happen if we allow a new generation to arise ignorant of the tragedy which is still shaping the future.” President Bush, appearing almost uncomfortable, read a statement that said that humanity was “bound by conscience to remember what happened” and that “the record has been kept and preserved.” The record, Mr. Bush stated, was that one of the worst acts of genocide in human history “came not from crude and uneducated men, but from men who regarded themselves as cultured and well schooled, modern men, forward looking. Their crime showed the world that evil can slip in and blend in amid the most civilized surroundings. In the end only conscience can stop it.”

But while President Bush publicly embraced the community of holocaust survivors in Washington last spring, he and his family have been keeping a secret from them for over 50 years about Prescott Bush, the president’s grandfather. According to classified documents from Dutch intelligence and US government archives, President George W. Bush’s grandfather, Prescott Bush made considerable profits off Auschwitz slave labor. In fact, President Bush himself is an heir to these profits from the holocaust which were placed in a blind trust in 1980 by his father, former president George Herbert Walker Bush.

Throughout the Bush family’s decades of public life, the American press has gone out of its way to overlook one historical fact - that through Union Banking Corporation (UBC), Prescott Bush, and his father-in-law, George Herbert Walker, along with German industrialist Fritz Thyssen, financed Adolf Hitler before and during World War II. It was first reported in 1994 by John Loftus and Mark Aarons in The Secret War Against the Jews: How Western Espionage Betrayed the Jewish People.

The US government had known that many American companies were aiding Hitler, like Standard Oil, General Motors and Chase Bank, all of which was sanctioned after Pearl Harbor. But as The New York Times reporter Charles Higham later discovered, and published in his 1983 groundbreaking book, Trading With The Enemy; The Nazi American Money Plot 1933-1949, “the government smothered everything during and even after the war.” Why? According to Higham, the US government believed “a public scandal … would have drastically affected public morale, caused widespread strikes and perhaps provoked mutinies in the armed services.” Higham claims the government thought “their trial and imprisonment would have made it impossible for the corporate boards to help the American war effort.” However, Prescott Bush’s banks were not just financing Hitler as previously reported. In fact, there was a distinct business link much deeper than Mr. Higham or Mr. Loftus knew at the time their books were published.

A classified Dutch intelligence file which was leaked by a courageous Dutch intelligence officer, along with newly surfaced information from U.S. government archives, “confirms absolutely,” John Loftus says, the direct links between Bush, Thyssen and genocide profits from Auschwitz.

The business connections between Prescott Bush and Fritz Thyssen were more direct than what has been previously written. This new information reveals how Prescott Bush and UBC, which he managed directly, profited from the Holocaust. A case can be made that the inheritors of the Prescott Bush estate could be sued by survivors of the Holocaust and slave labor communities. To understand the complete picture of how Prescott Bush profited from the Holocaust, it is necessary to return to the year 1916, where it all began.

Post World War I: Thyssen Empire On The Ropes

By 1916, August Thyssen could see the writing on the wall. The “Great War” was spinning out of control, grinding away at Germany’s resources and economy. The government was broke and his company, Thyssen & Co., with 50,000 German workers and annual production of 1,000,000 tons of steel and iron, was buckling under the war’s pressure. As the main supplier of the German military, August Thyssen knew Germany would be defeated once the US entered the war.

At 74, “King” August Thyssen knew he was also running out of time. His first born “prince” Friedrich (Fritz) Thyssen, had been groomed at the finest technical business schools in Europe and was destined to inherit his father’s estimated $100,000,000 fortune and an industrial empire located at Muehhlheim on the Ruhr.

In addition to Fritz, plans were also made for the second son Heinrich. At the outbreak of the war, Heinrich Thyssen discreetly changed his citizenship from German to Hungarian and married the Hungarian aristocrat Baroness Margrit Bornemisza de Kaszon. Soon Heinrich Thyssen switched his name to Baron Thyssen Bornemisza de Kaszon.

Near the end of World War I, August Thyssen opened the Bank voor Handel en Scheepvaart in Rotterdam. The neutral Holland was the perfect location outside of Germany to launder assets from the August Thyssen Bank in Berlin when the financial demands of the Allied forces surfaced. But the war ended much sooner than even Thyssen calculated and what developed caught the “Rockefeller of the Ruhr” off guard.

On November 10, 1918, German socialists took over Berlin. The following morning at 5 a.m., what was left of Germany surrendered to the Allies, officially ending World War I. “At the time of the Armistice and the signing of the Treaty of Versailles, my Father and I were deeply saddened by the spectacle of Germany’s abject humiliation,” Thyssen recalled later in his autobiography, I Paid Hitler.

After the war, chaos descended on Germany as food ran short. Winter was looming over a starving nation when on Dec. 7, 1918, the socialist Spartacists League came knocking on the Thyssen Villa with armed militia. August and Fritz were arrested and dragged from jail to jail across Germany for four days. Along the way, they were lined up in staged executions designed to terrorize them.

It worked. When released, the two Thyssens were horrified at the new political climate in their beloved Germany. They could not accept that Germany was responsible for its own demise. All Germany’s problems, the Thyssens felt, “have almost always been due to foreigners.” It was the Jews, he and many others believed, who were secretly behind the socialist movement across the globe.

Meanwhile Fritz’s younger brother Baron Thyssen Bornemisza de Kaszon moved to Rotterdam and became the principal owner of the Bank voor Handel en Scheepvaart. All the Thyssens needed now was an American branch.

1920s: The Business Ties That Bind

Railroad baron E.H. Harriman’s son Averell wanted nothing to do with railroads, so his father gave him an investment firm, W.A. Harriman & Company in New York City. E.H. hired the most qualified person in the country to run the operation, George Herbert Walker. Averell hired his little brother Edward Roland “Bunny” Harriman as a vice president.

By 1920, George Herbert Walker had already built a fortune in Missouri. Walker, a charismatic former heavyweight boxing champion, was a human pit bull. He lived life to the fullest, owning mansions around the east coast and one of the most extravagant apartments in Manhattan. His hobbies were golf, hunting, drinking scotch and beating his sons to a pulp. Elsie Walker, one of Walker’s grandchildren described Walker as a “tough old bastard” whose children had no love “for their father.” He was also a religious bigot who hated Catholics, although his parents raised him to be one. According to other sources, he also did not like Jews.

In 1922, Averell Harriman traveled to Germany to set up a W.A. Harriman & Co. branch in Berlin. The Berlin branch was also run by Walker. While in Germany, he met with the Thyssen family for the first time. Harriman agreed to help the Thyssens with their plan for an American bank.

The following year, a wounded Germany was growing sicker. The government had no solution and froze while Germany rotted from within. With widespread strikes and production at a near standstill, Fritz Thyssen later recalled, “We were at the worst time of the inflation. In Berlin the government was in distress. It was ruined financially. Authority was crumbling. In Saxony a communist government had been formed and the Red terror, organized by Max Hoelz, reigned through the countryside. The German Reich … was now about to crumble.”

In October, 1923, an emotionally desperate Fritz Thyssen went to visit one of his and Germany’s great military heroes, General Erich Ludendorff. During the 1918 socialist rule in Berlin, Ludendorff organized a military resistance against the socialists and the industrialists were in great debt to him. When Thyssen met with Ludendorff, they discussed Germany’s economic collapse. Thyssen was apocalyptic, fearing the worst was yet to come. Ludendorff disagreed. “There is but one hope,” Ludendorff said, “Adolph Hitler and the National Socialist party.” Ludendorff respected Hitler immensely. “He is the only man who has any political sense.” Ludendorff encouraged Thyssen to join the Nazi movement. “Go listen to him one day” he said to Thyssen.

Thyssen followed General Ludendorff’s advice and went to a number of meetings to hear Hitler speak. He became mesmerized by Hitler. “I realized his orator gifts and his ability to lead the masses. What impressed me most however was the order that reigned over his meetings, the almost military discipline of his followers.”

Thyssen arranged to meet privately with Hitler and Ludendorff in Munich. Hitler told Thyssen the Nazi movement was in financial trouble, it was not growing fast enough and was nationally irrelevant. Hitler needed as much money as possible to fight off the Communists/Jewish conspiracy against Europe. Hitler envisioned a fascist German monarchy with a nonunion, antilock national work force.

Thyssen was overjoyed with the Nazi platform. He gave Hitler and Ludendorff 100,000 gold marks ($25,000) for the infant Nazi party. Others in the steel and coal industries soon followed Thyssen’s lead, although none came close to matching him. Many business leaders in Germany supported Hitler’s secret union-hating agenda. However, some donated because they feared they would be left out in the cold if he actually ever seized power.

Most industry leaders gave up on Hitler after his failed coup in 1923. While Hitler spent a brief time in jail, the Thyssens, through the Bank voor Handel en Scheepvaart, opened the Union Banking Corporation in 1924.

Union Banking Corporation

Early in 1924, Hendrick J. Kouwenhoven, the managing director of Bank voor Handel en Scheepvaart, traveled to New York to meet with Walker and the Harriman brothers. Together, they established The Union Banking Corporation. The UBC’s headquarters was located at the same 39 Broadway address as Harriman & Co.

As the German economy recovered through the mid to late ’20s, Walker and Harriman’s firm sold over $50,000,000 worth of German bonds to American investors, who profited enormously from the economic boom in Germany. In 1926, August Thyssen died at the age of 84. Fritz was now in control of one of the largest industrial families in Europe. He quickly created the United Steel Works (USW), the biggest industrial conglomerate in German history. Thyssen hired Albert Volger, one of the Ruhr’s most influential industrial directors, as director General of USW.

Thyssen also brought Fredich Flick, another German family juggernaut, on board. Flick owned coal and steel industries throughout Germany and Poland and desperately wanted to invest into the Thyssen empire. One of the primary motivations for the Thyssen/Flick massive steel and coal merger was suppressing the new labor and socialist movements.

That year in New York, George Walker decided to give his new son in law, Prescott Bush, a big break. Walker made Bush a vice president of Harriman & Co. Prescott’s new office employed many of his classmates from his Yale class of 1917, including Roland Harriman and Knight Woolley. The three had been close friends at Yale and were all members of Skull and Bones, the mysterious on-campus secret society. Despite the upbeat fraternity atmosphere at Harriman & Co., it was also a place of hard work, and no one worked harder than Prescott Bush. In fact, Walker hired Bush to help him supervise the new Thyssen/Flick United Steel Works. One section of the USW empire was the Consolidated Silesian Steel Corporation and the Upper Silesian Coal and Steel Company located in the Silesian section of Poland. Thyssen and Flick paid Bush and Walker generously, but it was worth every dime. Their new business arrangement pleased them all financially, and the collective talents of all four men and their rapid success astonished the business world.

In the meantime Hitler and the Nazi party were broke. Since the German economic recovery, members and donations had dried up, leaving the Nazi movement withering on the vine. In 1927, Hitler was desperate for cash; his party was slipping into debt. Hitler told his private secretary Rudolf Hess to shake down wealthy coal tycoon and Nazi sympathizer Emil Kirdorf. Kirdorf paid off Hitler’s debt that year but the following year, he too had no money left to contribute.

In 1928, Hitler had his eyes on the enormous Barlow Palace located in Briennerstrasse, the most aristocratic section of Munich. Hitler wanted to convert the palace into the Nazi national headquarters and change its name to the Brown House but it was out of his price range. Hitler told Hess to contact Thyssen. After hearing the Hess appeal, Thyssen felt it was time to give Hitler a second chance. Through the Bank voor Handel en Scheepvaart, Thyssen said he “placed Hess in possession of the required funds” to purchase and redesign the Palace. Thyssen later said the amount was about 250,000 marks but leading Nazis later claimed that just the re-molding cost over 800,000 marks (equivalent to $2 million today).

Regardless of the cost, Hitler and Thyssen became close friends after the purchase of the Brown House. At the time, neither knew how influential that house was to become the following year when, in 1929, the great depression spread around the world. With the German economic recovery up in flames, Hitler knew there was going to be a line out the door of industrialists waiting to give him cash.

1930s: Hitler Rises - Thyssen/Bush Cash In

Thyssen would later try to claim that his weekends with Hitler and Hess at his Rhineland castles were not personal but strictly business and that he did not approve of most of Hitler’s ideas, but the well-known journalist R.G Waldeck, who spent time with Thyssen at a spa in the Black Forest, remembered quite differently. Waldeck said when he and Thyssen would walk through the cool Black Forest in 1929-30, Thyssen would tell Waldeck that he believed in Hitler. He spoke of Hitler “with warmth” and said the Nazis were “new men” that would make Germany strong again. With the depression bleeding Europe, Thyssen’s financial support made Hitler’s rise to power almost inevitable.

The great depression also rocked Harriman & Co. The following year, Harriman & Co. merged with the London firm Brown/Shipley. Brown/Shipley kept its name, but Harriman & Co. changed its name to Brown Brothers, Harriman. The new firm moved to 59 Wall St. while UBC stayed at 39 Broadway. Averell Harriman and Prescott Bush reestablished a holding company called The Harriman 15 Corporation. One of the companies Harriman had held stock in was the Consolidated Silesian Steel Company. Two thirds of the company was owned by Friedrich Flick. The rest was owned by Harriman.

In December 1931, Fritz Thyssen officially joined the Nazi party. When Thyssen joined the movement, the Nazi party was gaining critical mass around Germany. The charismatic speeches and persona of Hitler, the depression and the Thyssen’s Bank voor Handel en Scheepvaart all contributed to Hitler’s sudden rise in popularity with the German people. In September 1932, Thyssen invited a group of elite German industrial tycoons to his castle to meet with Hitler. They spent hours questioning Hitler, who answered all their questions with the’”utmost satisfaction,” Thyssen remembered. The money poured in from the industrial circles mostly due to Hitler’s “monarchistic attitude” towards labor and issues of class. But by November, German voters grew weary of Hitler’s antidemocratic tendencies and turned to the Communist party, which gained the most seats in the fall election. The Nazis lost a sweeping 35 seats in the Reichstag, but since the Nazis were already secretly negotiating a power sharing alliance with Hindenberg that would ultimately lead to Hitler declaring himself dictator, the outcry of German voters was politically insignificant.

By 1934, Hindenberg was dead and Hitler completely controlled Germany. In March, Hitler announced his plans for a vast new highway system. He wanted to connect the entire Reich with an unprecedented wide road design, especially around major ports. Hitler wanted to bring down unemployment but, more importantly, needed the new roads for speedy military maneuvers.

Hitler also wanted to seriously upgrade Germany’s military machine. Hitler ordered a’”rebirth of the German army” and contracted Thyssen and United Steel Works for the overhaul. Thyssen’s steel empire was the cold steel heart of the new Nazi war machine that led the way to World War II, killing millions across Europe.

Thyssen’s and Flick’s profits soared into the hundreds of millions in 1934 and the Bank voor Handel en Scheepvaart and UBC in New York were overflowing with money. Prescott Bush became managing director of UBC and handled the day-to-day operations of the new German economic plan. Bush’s shares in UBC peaked with Hitler’s new German order. But while production rose, cronyism did as well.

On March 19, 1934, Prescott Bush handed Averell Harriman a copy of that day’s New York Times. The Polish government was applying to take over Consolidated Silesian Steel Corporation and Upper Silesian Coal and Steel Company from’”German and American interests” because of rampant “mismanagement, excessive borrowing, fictitious bookkeeping and gambling in securities.” The Polish government required the owners of the company, which accounted for over 45% of Poland’s steel production, to pay at least its full share of back taxes. Bush and Harriman would eventually hire attorney John Foster Dulles to help cover up any improprieties that might arise under investigative scrutiny.

Hitler’s invasion of Poland in 1939 ended the debate about Consolidated Silesian Steel Corporation and Upper Silesian Coal and Steel Company. The Nazis knocked the Polish Government off Thyssen, Flick and Harriman’s steel company and were planning to replace the paid workers. Originally Hitler promised Stalin they would share Poland and use Soviet prisoners as slaves in Polish factories. Hitler’s promise never actually materialized and he eventually invaded Russia.

1940s: Business As Usual

Consolidated Silesian Steel Corporation was located near the Polish town of Oswiecim, one of Poland’s richest mineral regions. That was where Hitler set up the Auschwitz concentration camp. When the plan to work Soviet prisoners fell through, the Nazis transferred Jews, communists, gypsies and other minority populations to the camp. The prisoners of Auschwitz who were able to work were shipped to 30 different companies. One of the companies was the vast Consolidated Silesian Steel Corporation.”Nobody’s made the connection before between Consolidated Silesian Steel Corporation, Auschwitz and Prescott Bush,” John Loftus told Clamor.

“That was the reason why Auschwitz was built there. The coal deposits could be processed into either coal or additives for aviation gasoline.”

Even though Thyssen and Flick’s Consolidated Steel was in their possession, Hitler’s invasions across Europe spooked them, bringing back memories of World War I. Thyssen and Flick sold Consolidated Steel to UBC. Under the complete control of Harriman and management of Bush, the company became Silesian American Corporation which became part of UBC and Harriman’s portfolio of 15 corporations. Thyssen quickly moved to Switzerland and later France to hide from the terror about to be unleashed by the Nazi war machine he had helped build.

A portion of the slave labor force in Poland was “managed by Prescott Bush,” according to a Dutch intelligence agent. In 1941, slave labor had become the lifeblood of the Nazi war machine. The resources of Poland’s rich steel and coal field played an essential part in Hitler’s invasion of Europe.

According to Higham, Hitler and the Fraternity of American businessmen “not only sought a continuing alliance of interests for the duration of World War II, but supported the idea of a negotiated peace with Germany that would bar any reorganization of Europe along liberal lines. It would leave as its residue a police state that would place the Fraternity in postwar possession of financial, industrial, and political autonomy.”

Six days after Pearl Harbor and the US declaration of war at the end of 1941, President Franklin D. Roosevelt, Secretary of the Treasury Henry Morgenthau and US Attorney General Francis Biddle signed the Trading With the Enemy Act, which banned any business interests with US enemies of war. Prescott Bush continued with business as usual, aiding the Nazi invasion of Europe and supplying resources for weaponry that would eventually be turned on American solders in combat against Germany.

On October 20, 1942, the U.S. government had had enough of Prescott Bush and his Nazi business arrangements with Thyssen. Over the summer, The New York Tribune had exposed Bush and Thyssen, whom the Tribune dubbed “Hitler’s Angel.” When the US government saw UBC’s books, they found out that Bush’s bank and its shareholders “are held for the benefit of … members of the Thyssen family, [and] is property of nationals … of a designated enemy country.” The list of seven UBC share holders was:

E. Roland Harriman - 3991 shares
Cornelis Lievense - 4 shares
Harold D.Pennington - 1 share
Ray Morris– 1 share
Prescott S. Bush - 1 share
H.J. Kouwenhoven - 1 share
Johann G. Groeninger - 1 share

The UBC books also revealed the myriad of money and holding companies funneled from the Thyssens and the government realized UBC was just the tip of the iceberg. On November 17, 1942, The US government also took over the Silesian American Corporation, but did not prosecute Bush for the reasons Higham noted earlier. The companies were allowed to operate within the Government Alien Property custodian office with a catch - no aiding the Nazis. In 1943, while still owning his stock, Prescott Bush resigned from UBC and even helped raise money for dozens of war-related causes as chairman of the National War Fund.

After the war, the Dutch government began investigating the whereabouts of some jewelry of the Dutch royal family that was stolen by the Nazis. They started looking into books of the Bank voor Handel en Scheepvaart. When they discovered the transaction papers of the Silesian American Corporation, they began asking the bank manager H.J. Kounhoven a lot of questions. Kouwenhoven was shocked at the discovery and soon traveled to New York to inform Prescott Bush. According to Dutch intelligence, Kouwenhoven met with Prescott soon after Christmas, 1947. Two weeks later, Kouwenhoven apparently died of a heart attack.

1950s: Bush Sells UBC Stock

By 1948, Fritz Thyssen’s life was in ruins. After being jailed by the Nazis, he was jailed by the Allies and interrogated extensively, but not completely, by US investigators. Thyssen and Flick were ordered to pay reparations and served time in prison for their atrocious crimes against humanity.

On February 8, 1951, Fritz Thyssen died bitterly in Argentina at the age of 78. Thyssen was angry at the way he was treated by Europe after the war and how history would remember him as Hitler’s most important and prominent financier.

When Thyssen died, the Alien Property Custodian released the assets of the Union Banking Corporation to Brown Brothers Harriman. The remaining stockholders cashed in their stocks and quietly liquidated the rest of UBC’s blood money.

Prescott Bush received $1.5 million for his share in UBC. That money enabled Bush to help his son, George Herbert Walker Bush, to set up his first royalty firm, Overby Development Company, that same year. It was also helpful when Prescott Bush left the business world to enter the public arena in 1952 with a successful senatorial campaign in Connecticut. On October 8th, 1972, Prescott Bush died of cancer and his will was enacted soon after.

In 1980, when George H.W. Bush was elected vice president, he placed his father’s family inherence in a blind trust. The trust was managed by his old friend and quail hunting partner, William “Stamps” Farish III. Bush’s choice of Farish to manage the family wealth is quite revealing in that it demonstrates that the former president might know exactly where some of his inheritance originated. Farish’s grandfather, William Farish Jr., on March 25th, 1942, pleaded “no contest” to conspiring with Nazi Germany while president of Standard Oil in New Jersey. He was described by Senator Harry Truman in public of approaching “treason” for profiting off the Nazi war machine. Standard Oil, invested millions in IG Farben, who opened a gasoline factory within Auschwitz in 1940. The billions “Stamps” inherited had more blood on it then Bush, so the paper trail of UBC stock would be safe during his 12 years in presidential politics.

It has been 60 years since one of the great money laundering scandals of the 20th century ended and only now are we beginning to see the true historical aspects of this important period of world history, a history that the remaining Holocaust survivors beg humanity to “never forget.”

Loftus believes history will view Prescott Bush as harshly as Thyssen. “It is bad enough that the Bush family helped raise the money for Thyssen to give Hitler his start in the 1920s, but giving aid and comfort to the enemy in time of war is treason. The Bush bank helped the Thyssens make the Nazi steel that killed Allied solders. As bad as financing the Nazi war machine may seem, aiding and abetting the Holocaust was worse. Thyssen’s coal mines used Jewish slaves as if they were disposable chemicals. There are six million skeletons in the Thyssen family closet, and a myriad of criminal and historical questions to be answered about the Bush family’s complicity.”

There is no question that the Bush family needs to donate at least $1.5 million to the proper holocaust reparation fund. Since Prescott Bush is dead, the only way to compensate is for the main inheritors of his estate to make amends with surviving slaves and the families of slaves who died in Bush and Thyssen’s coal mines. If the Bush family refuses to contribute the money to compensate for Prescott Bush’s involvement in the Holocaust, it is like denying the Holocaust itself and their role in one of the darkest moments in world history.

Special thanks to John Loftus, Emmy winning journalist, author and current president of the Florida Holocaust Museum.

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.)

PUBLIC CITIZEN
New Report Outlines Ed Gillespie’s Lucrative Work on Behalf of Enron, Other Large Corporations

WASHINGTON, D.C. - By appointing Ed Gillespie, a leading corporate lobbyist, to head the Republican National Committee, President Bush has opened a conduit for Corporate America to strengthen its already formidable influence in the White House and Congress, Public Citizen said today.
The lobbying firm Gillespie co-founded in 2000, Quinn, Gillespie & Associates, has grown into one of the capital’s most lucrative, in part because of Gillespie’s strong ties to the Bush administration.

A party chairman works hand-in-hand with the White House and congressional leaders on policy matters and election strategy, and wields a great deal of influence on legislation that may benefit contributors to the national party. Gillespie access to inside information will be invaluable to the clients and partners at Quinn Gillespie - even if Gillespie does not lobby or engage in any policy discussions with clients of his firm, in which he will continue to hold an ownership stake.

“The party chief is in a unique position to help friends and punish enemies,” Public Citizen President Joan Claybrook said. “This is just one more step in the merger of the Republican Party and Corporate America. Ed Gillespie is a richly rewarded lobbyist who greased the wheels in Congress and the White House for Enron, one of the most crooked companies in U.S. history. And now he’s at the head of the GOP. That should tell citizens where President Bush’s interests lie.”

Public Citizen today released a new analysis of Quinn Gillespie’s efforts on behalf of a slew of corporate clients on legislation to undercut consumer rights and increase the power of big business. Drawn from federal disclosure forms, the analysis shows that:

- Since its founding by Gillespie and former Clinton White House counsel Jack Quinn in 2000, the firm has reported $27.4 million in lobbying-related income through 2002.

- Gillespie has worked to keep national energy policy in lockstep with the wishes of Enron and other energy giants. Quinn Gillespie earned $700,000 from Enron in 2001 alone to lobby the White House on the electricity crisis on the West Coast. The administration aggressively supported Enron’s position against re-regulating electricity markets. Gillespie also channeled money from DaimlerChrysler and Enron to his 21st Energy Project, which bought print and television ads in July 2001 to promote the administration’s energy plans, including blocking any increase in fuel-economy standards.

- PricewaterhouseCoopers paid Quinn Gillespie $1.35 million from 2000 to 2002 to lobby against increased oversight of the accounting industry. PricewaterhouseCoopers - which paid a $5 million fine to the Securities and Exchange Commission in 2002 for repeated accounting irregularities, including improperly auditing millions in fees paid to its own consultants - tried to limit restrictions on consulting and other services that an accounting firm could offer its clients. Effectively, Quinn Gillespie was trying to water down accounting reforms in the wake of an unprecedented wave of corporate fraud.

- The U.S. Chamber of Commerce paid Gillespie’s firm $860,000 from 2000 to 2002 to lobby for the so-called Class Action Fairness Act - legislation that would benefit corporations by moving lawsuits from state to federal courts, where it is more difficult to certify class actions and delays result from large case backlogs. All told, the firm has collected at least $1.12 million to lobby for this anti-consumer bill.

- After helping set up the Commerce Department as part of the Bush transition team, Gillespie returned to his practice and immediately began lobbying on behalf of clients with business before the department. Gillespie helped secure tariffs against foreign competition for the “Stand Up for Steel” coalition and USEC Inc., the country’s largest supplier of enriched uranium fuel to nuclear power plants.

- Tyson Foods paid Quinn Gillespie $440,000 in 2002, in part to downplay federal charges against Tyson for conspiring to smuggle illegal immigrants into the United States to work at its poultry processing plants for lower wages than it paid legal workers. The firm also lobbied on “wage and hour” issues for Tyson, a result of a Labor Department lawsuit against Tyson seeking $300 million in back pay owed to workers.

Other clients of Quinn Gillespie include DirecTV, Microsoft, SBC Communications, Verizon and Viacom.

As chairman of the RNC, Gillespie will be the party’s lead fundraiser and spokesman, responsible for raising hundreds of millions of dollars each election cycle and determining which candidates get the money, thereby holding the purse strings for the legislators his firm works to persuade.

“Very few non-governmental positions in American politics offer so much potential for corruption,” said Frank Clemente, director of Public Citizen’s Congress Watch. “Why would corporations need to hire a lobbyist if they could go straight to lawmakers through Gillespie? President Bush was wrong to appoint such a crony of big business.”

Public Citizen’s analysis is available on the Web at
http://www.citizen.org/congress/welfare/articles.cfm?ID=9825

Public Citizen is a national, nonprofit consumer advocacy group based in Washington, D.C. For more information, please visit www.citizen.org

A Creeping Collapse in Credibility at the White House:
From ENRON Entanglements to UNOCAL Bringing the Taliban to Texas and Controlling Afghanistan
By Tom Turnipseed
January 10, 2002

The Bush Administration’s entanglement with ENRON is beginning to unravel as it finally admits that Enron executives entered the White House six times last year to secretly plan the Administration’s energy policy with Vice-President Cheney before the collapse of the Texas-based energy giant.
Meanwhile, even more trouble for our former-Texas-oil-man-turned-President is brewing with reports that unveil UNOCAL, another big energy company, for being in bed with the Taliban, along with the U.S. government in a major, continuing effort to construct pipelines through Afghanistan from the petroleum-rich Caspian Basin in Central Asia. Beneath their burkas, UNOCAL is being exposed for giving the five star treatment to Taliban Mullahs in the Lone Star State in 1997. The “evil-ones” were also invited to meet with U.S. government officials in Washington, D.C.

According to a December 17, 1997 article in the British paper, The Telegraph, headlined, “Oil barons court Taliban in Texas,” the Taliban was about to sign a “£2 billion contract with an American oil company to build a pipeline across the war-torn country. … The Islamic warriors appear to have been persuaded to close the deal, not through delicate negotiation but by old-fashioned Texan hospitality. … Dressed in traditional salwar khameez,Afghan waistcoats and loose, black turbans, the high-ranking delegation was given VIP treatment during the four-day stay.”

At the same time, U.S. government documents reveal that the Taliban were harboring Osama bin Laden as their “guest” since June 1996. By then, bin Laden had: been expelled by Sudan in early 1996 in response to US insistence and the threat of UN sanctions; publicly declared war against the U.S. on or about August 23, 1996; pronounced the bombings in Riyadh and at Khobar in Saudi Arabia killing 19 US servicemen as ‘praiseworthy terrorism’, promising that other attacks would follow in November 1996 and further admitted carrying out attacks on U.S. military personnel in Somalia in 1993 and Yemen in 1992, declaring that “we used to hunt them down in Mogadishu”; stated in an interview broadcast in February 1997 that “if someone can kill an American soldier, it is better than wasting time on other matters.” Evidence was also developing which linked bin Laden to: the 1995 bombing of a U.S. military barracks in Riyadh which killed five; Ramzi Yuosef, who led the 1993 World Trade Center attacks; and a 1994 assassination plot against President Clinton in the Philippines.

Back in Houston, the Taliban was learning how the “other half lives,” and according to The Telegraph, “stayed in a five-star hotel and were chauffeured in a company minibus.” The Taliban representatives “…were amazed by the luxurious homes of Texan oil barons. Invited to dinner at the palatial home of Martin Miller, a vice-president of Unocal, they marveled at his swimming pool, views of the golf course and six bathrooms.” Mr. Miller, said he hoped that UNOCAL had clinched the deal.

Dick Cheney was then CEO of Haliburton Corporation, a pipeline services vendor based in Texas. Gushed Cheney in 1998, “I can’t think of a time when we’ve had a region emerge as suddenly to become as strategically significant as the Caspian. It’s almost as if the opportunities have arisen overnight. The good Lord didn’t see fit to put oil and gas only where there are democratically elected regimes friendly to the United States. Occasionally we have to operate in places where, all things considered, one would not normally choose to go. But we go where the business is.” Would Cheney bargain with the harborers of U.S. troop killers if that’s where the business was?

The Telegraph reported that Unocal had promised to start building the pipeline and paying the Taliban immediately, with the added inducements and a donation of £500,000 to the University of Nebraska for courses in Afghanistan to train 400 teachers, electricians, carpenters and pipefitters.

The Telegraph also reported, “The US government, which in the past has branded the Taliban’s policies against women and children “despicable”, appears anxious to please the fundamentalists to clinch the lucrative pipeline contract.” In a paper prepared by Neamatollah Nojumi, at the Tufts University Fletcher School of Law and Diplomacy, Nojumi wrote in August 1997 that Madeline Albright sat in a “full-dress CIA briefing” on the Caspian region. CIA agents then accompanied “some well-trained petroleum engineers” to the region. Albright concluded that shaping the region’s policies was “one of the most exciting things that we can do.”

It’s also exciting to the Bush Administration. According to the authors of Bin Laden, the Hidden Truth, one of the FBI’s leading counter terrorism agents, John O’Neill, resigned last year in protest over the Bush Administration’s alleged obstruction of his investigation into bin Laden. (A similar complaint has been filed on behalf of another unidentified FBI Agent by the conservative Judicial Watch public interest group.) Supposedly the Bush Administration had been meeting since January 2001 with the Taliban, and was also reluctant to offend Saudi Arabians who O’Neill had linked to bin Laden. Mr. O’Neill, after leaving the FBI, assumed the position of security director at the World Trade Center, where he was killed in the 911 attacks.

As America’s New War now begins focusing on other “rogue nations,” UNOCAL’s stars have magically aligned. About two months after the Houston parties, UNOCAL executive John Maresca addressed the House Subcommittee on Asia and the Pacific and urged support for establishment of an investor-friendly climate in Afghanistan, “… we have made it clear that construction of our proposed pipeline cannot begin until a recognized government is in place that has the confidence of governments, lenders and our company.” Meaning that UNOCAL’s ability to construct the Afghan pipeline was a cause worthy of U.S. taxpayer dollars.

Maresca’s prayers have been answered with the Taliban’s replacement. As reported in Le Monde, the new Afghan government’s head, Hamid Karzai, formerly served as a UNOCAL consultant. Only nine days after Karzai’s ascension, President Bush nominated another UNOCAL consultant and former Taliban defender, Zalmay Khalilzad, as his special envoy to Afghanistan.

When UNOCAL makes big bucks from the pipeline they should donate 50% of all pretax profits to the 911 Fund. And they should also cut a very special check to the widow of FBI Agent O’Neill.

Tom Turnipseed is a civil rights lawyer in South Carolina.
Visit Tom’s website at www.turnipseed.net

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