Feds: GOP Lobbyist Abramoff ran Capitol Hill
call-boy sex service at DC hotel
by Tom Flocco, tomflocco.com
Washington—A retired intelligence agency official corroborated the revelations of
a national security expert that male and female heterosexual, homosexual, lesbian,
bisexual and underage children provided sexual services to numerous
congressmen, senators, national media hosts, top military officers and other
federal officials who were compromised and made susceptible to blackmail at
three Washington, DC hotels since 2000.
The long-time intelligence insider with multiple Capitol Hill sources told
TomFlocco.com that convicted GOP lobbyist Jack Abramoff operated the sex /
spy ring at the Watergate, Ritz-Carlton and Sheraton hotels in Washington, DC.
“The whole Republican Party was for sale—the House, Senate and the White
House,” said the well-respected federal insider with impeccable and historic
intelligence credentials who declined to be named at this time but who is familiar
with testimony and sources close to a grand jury probing the GOP lobbyist’s sale of
sex in return for legislative influence over taxpayer dollars.
According to Justice Department sources there is email and phone record evidence
that White House advisor Karl Rove is linked to the operation of Abramoff’s sex
ring according to federal agency sources who spoke with U.S. intelligence authority
Heneghan added that a grand jury heard several agents testify last April that “the
Watergate, Ritz-Carlton and Sheraton Hotels in Washington, DC were used to
compromise legislators and news-people with prostitution services, the financing of
which is directly linked to the American Israeli Public Affairs Committee
(AIPAC), former Israeli Prime Minister Benjamin Netanyahu, Marc Rich and
The allegations raise serious questions as to why such testimony was not made
public to protect the safety of congressional pages subject to sexual contacts by
congressmen or other officials linked to the Abramoff poker party hotel sex ring
which has already ensnared convicted former GOP Congressman Randy “Duke”
Cunningham (R-50-CA) who is currently serving a federal prison sentence.
On Wednesday evening CNN Primetime host Nancy Grace interviewed former
congressional page Tyson Vivyan who called recently resigned Florida Congressman
Mark Foley “sick and depraved” after receiving explicit emails and instant
messages asking if he [Vivyan] “would like to perform sex acts on Foley” more than
ten years ago when he was sixteen years old.
Heneghan’s executive intelligence network revealed startling allegations that
“retiring GOP Senate Majority Leader and Tennessee 2008 presidential candidate
William Frist visited the Abramoff hotels,” adding that “Frist is reportedly a close
friend of George W. Bush’sYale Skull and Bones roommate—former Knoxville,
Tennessee mayor Victor Ashe—who agents have alleged to be a long-time albeit
sporadic Bush 43 consort.”
Heneghan also alleged additional prostitute customers as British Prime Minister
Tony Blair and former CNN host-reporter Robert Novak, both of whom were
allegedly introduced into the sex-ring by GOP reporter and former male prostitute
Gannon visited the Bush White House private living quarters 45 times without the
assignations being recorded in visitor logs even though they could be documented
by the President’s Secret Service detail, said Heneghan who has yet to be
interviewed by mainstream media, according to Heneghan.
Federal agents linked recently resigned Representative Mark Foley (R-16-FL) to
Abramoff and Gannon who allegedly acted as “facilitators for the poker parties
and an elaborate prostitution ring of pedophiles and extortion-friendly
homosexuals-in-the-closet serving elements of the Republican leadership,” he said.
The intelligence expert said FBI investigators are reportedly probing GOP bribery
of the family of one alleged congressional page-boy victim who was sexually
approached by page predator Foley, having received lurid emails which were
eventually publicized widely in the media.
Heneghan said payoff money was allegedly channeled through presidential advisor
Karl Rove and Abramoff to induce the congressional page’s silence during the past
Heneghan’s federal agent network also revealed that sources close to the New
York Times indicate that GOP congressional leaders including Speaker of the
House J. Dennis Hastert (R-14-IL), House Majority Leader John A. Boehner (R-8-OH), House Majority Whip Roy Blunt (R-7-MO) and Senate Majority Leader Bill
Frist (R-TN) all helped obstruct justice to cover up the sets of emails
incriminating Congressman Foley over a lengthy period of time—and that the Foley
email issue was “taken care of.”
Media reports indicate that most Americans feel that homosexual and lesbian
citizens have the same rights to equality, fair treatment and privacy afforded to
all Americans; however, Foley’s position as a United States congressman who
preyed upon underage congressional page boys crosses the line of criminality which
leads many to wonder if more federal legislators will become ensnared in the
Abramoff hotel sex ring pedophilia asserted by federal agents….
WMD, poker and pillow talk
While allegations of sex with minors promulgated by the retired intelligence
official are scandalous, Heneghan unloaded an explosive charge that the White
House bin Laden “terrorist” film footage was produced in Las Vegas by a
Paramount subsidiary called Las Vegas Rose Productions and that many of the
alleged 9-11 “hijackers” including Mohammed Atta visited Sin City just before the
September 11 attacks.
The intelligence authority’s network of agency sources revealed that prosecutors
will have interest in reports that “the genesis of the Valerie Plame CIA leak case
took place during one of Capitol Hill reporter Robert Novak’s alleged visits with an
Abramoff hooker at one of the hotels after a poker party.”
“Photographs of politicians in compromising positions have reportedly already been
used as blackmail to silence politicians who would speak the truth about the 2000
Bush-Gore election fraud in Florida, prior knowledge of the September 11 attacks ,
Iraq—yellowcake—weapons of mass destruction (WMD) and how Abramoff and
Netanyahu were the pimps for the sex for influence operation,” said Heneghan.
President Bush emphatically denied that he personally knew Abramoff, despite CIA
and Secret Service documents indicating the convicted lobbyist visited the White
House 200 times during the first ten months of the Bush presidency—often
enough for a personal visit on every business day of each month, according to wide
Despite the daily White House visits, Bush said “I’ve never sat down with him and
had a discussion with the guy,” adding, “I’m also mindful that we live in a world in
which those pictures will be used for pure political purposes,” attempting to justify
his unwillingness at first to release photos with Abramoff and to account for his
Heneghan told us the Bush administration wanted Valerie Plame-Wilson’s identity
as a CIA official leaked because her intelligence team had identified Israeli
Mossad operatives inside Iran who were to receive weapons of mass destruction to
be delivered through Turkey and planted in Iraq to further the president’s case
“The financing for these whorehouses is linked directly to AIPAC, Benjamin
Netanyahu, Marc Rich and Jack Abramoff; and the money trail ties back to
American International Group (AIG), Hank Greenberg, Leonard Millman and Doug
Alexander—former British Minister of E-Commerce,” said Heneghan….
Read the complete story, with photos, at…
October 3, 2006
Bill Moyers, www.tompaine.com
Back in 1954, when I was a summer employee on Capitol Hill, I made my first visit
to the Lincoln Memorial. I have returned many times since, most recently while I
was in Washington filming for a documentary about how Tom DeLay, Jack
Abramoff, Ralph Reed and Grover Norquist, among others, turned the conservative
revolution into a racket—the biggest political scandal since Watergate.
If democracy can be said to have temples, the Lincoln Memorial is our most sacred.
You stand there silently contemplating the words that gave voice to Lincoln’s
fierce determination to save the union—his resolve that “government of, by, and
for the people shall not perish from the earth.”
On this latest visit, I was overcome by a sense of melancholy. Lincoln looks out now
on a city where those words are daily mocked. This is no longer his city. And those
people from all walks of life making their way up the steps to pay their respect to
the martyred president—it’s not their city, either. Or their government. This is an
occupied city, a company town, and government is a subservient subsidiary of richly
Once upon a time the House of Representatives was known as “the people’s house.”
No more. It belongs to K Street now. That’s the address of the lobbyists who
swarm all over Capitol Hill. There are 65 lobbyists for every member of
Congress. They spend $200 million per month wining, dining and seducing federal
officials. Per month!
Of course they’re just doing their job. It’s impossible to commit bribery, legal or
otherwise, unless someone’s on the take, and with campaign costs soaring, our
politicians always have their hands out. One representative confessed that
members of Congress are the only people in the world expected to take large
amounts of money from strangers and then act as if it has no effect on their
This explains why Democrats are having a hard time exploiting the culture of
corruption embodied in the scandalous behavior of DeLay and Abramoff.
Democrats are themselves up to their necks in the sludge. Just the other day one
of the most powerful Democrats in the House bragged to reporters about tapping
“uncharted donor fields in the financial industry”—reminding them, not so subtlely,
of the possibility that after November the majority leader just might be a
When it comes to selling influence, both parties have defined deviancy up, and
Tony Soprano himself couldn’t get away with some of the things that pass for
business as usual in Washington. We have now learned that Jack Abramoff had
almost 500 contacts with the Bush White House over the three years before his
fall, and that Karl Rove and other presidential staff were treated to his favors and
often intervened on his behalf. So brazen a pirate would have been forced to walk
the plank long ago if Washington had not thrown its moral compass overboard.
Alas, despite all these disclosures, nothing is happening to clean up the place. Just
as the Republicans in charge of the House kept secret those dirty emails sent to
young pages by Rep. Mark Foley — a cover-up aimed at getting them past the
election and holding his seat for the party — they are now trying to sweep the
DeLay-Abramoff-Reed-and-Norquist scandals under the rug until after Nov. 7,
hoping the public at large doesn’t notice that the House is being run by Tom
DeLay’s team, minus DeLay. All the talk about reform is placebo.
The only way to counter the power of organized money is with organized and
outraged people. Believe me, what members of Congress fear most is a grassroots
movement that demands clean elections and an end to the buying and selling of
influence—or else! If we leave it to the powers that be to clean up the mess that
greed and chicanery have given us, we will wake up one day with a real Frankenstein
of a system—a monster worse than the one created by Abramoff, DeLay and their
By then it will be too late to save Lincoln’s hope for “government of, by, and for
IDENTIFY THE ENEMIES OF THE AMERICAN
REVOLUTION IN THE 21st CENTURY AND
WITH TOM HENEGHAN, Cloak and Dagger
Frist Fingered As Extortionist
William Frist (R. Tenn.) has been subpoenaed by the SEC and now faces three
counts of criminal indictment for fraud and insider trading.
Noted Republican from Tennessee William Frist was subpoenaed two weeks ago by
the SEC (reference documents linked to the HCA Inc. which involve a loan of 1.4
million dollars and the sale of his HCA Inc. stock aka a tip from his brother who is
a director of HCA Inc.)
Further Frist whose interest on the loan amounts to about ten thousand dollars a
month, has been fingered in receiving direct help in paying back the loan from
noted Mega Mossad lobbyist Jack Abramoff.
The bribes and under the table money given to Frist is also tied to noted defense
contracting company MZM Inc. with direct links to the NSA, Mitchell Wade, and
Note: The NSA has used MZM Inc., a byproduct of Choicepoint Software, to
collect a secret spy data base on every living and breathing American living in the
(Reference: Choicepoint Software was used to destroy forty thousand votes for
Albert Gore Jr. in the Year 2000 U.S. Presidential Election.)
Frist, also received Walt Disney/Mickey Mouse/ABC stock and other financial
favors. Frist is now directly linked to Michael Eisner and Coca Cola in the
conspiracy to overthrow the Year 2000 U.S. Presidential Election.
Part of this group included noted ABC Talk Show Host George Stephanopoulos.
Stephanopoulos was happy to work with Frist and other co-conspirators since he
loathed the then U.S. Vice-President Albert Gore Jr. and what Gore represents,
namely fairness and respect for the “Rule of Law,” and real family values.
In Sunday’s interview with Frist, Stephanopoulos did not raise any of these
It gets worse. He is now linked to the Tennessee Project with Bay Point School
Florida, as well as British Cabinet Member Douglas Alexander and noted Bush
Advisor Karen Hughes, in the theft of up to seventy-five thousand votes from the
State of Tennessee in the Year 2000 U.S. Presidential Election.
Frist was aware of the Hughes-Alexander-Tennessee Project that allowed an
encrypted software in Nashville, Tennessee to switch the Vote Totals from
Tennessee in favor of Bush utilizing and compromising the Noted Voters News
Service that was still used in the Year 2000….
Note: Frist, a defender of NSA Espionage against the American People, has even
threatened to filibuster any attempt to reign in the Gestapo-like activity.
It can now be reported that it was the NSA that had the Program and gave out
the encrypted signal that allowed the Election to be stolen in Tennessee.
PS – The NSA has a seven second advance lead time on all financial transactions in
the United States. It can now be reported that Frist benefited from this with his
Insider Trading Swindles.
PPS – Frist is also linked to noted male prostituteJeff Gannon in the procurement
of whores, male and female, through the noted poker parties run by Abramoff.
Frist, like former Governor McGreevey of New Jersey is married but secretly
extortion-friendly and in the closet.
Frist is also linked to sexual liaisons withRepublican National ChairmanKen
PPPS – Former President Bill Clinton told his wife Hillary Clinton that she is
unelectable and is a Dukakis in a dress. This has caused Hillary to experience a
massive nervous breakdown in which she is once again being heavily medicated….
Ensuring the retention of more than 300 jobs at Pearl Harbor for most of the
next decade, BAE Systems Inc.’s ship repair division has won a seven-year, $87
million contract from the U.S. Navy to repair ships at BAE’s Hawaii Shipyard, the
company said yesterday.
The contract covers maintenance of the 12 Navy ships stationed in Hawaii, as well
as transient Navy ships that could stop in Hawaii for repairs while at sea, said
John Kowalczyk, a spokesman for BAE Systems in Rockville, Md. It means
continued employment for 170 BAE employees in Honolulu and for 150 to 170
contractors, Kowalczyk said .
Although BAE pegged the contract’s value at $87 million, it actually could be
worth as much as $270 million at the end of seven years, Kowalczyk said.
BAE Systems Inc. is the U.S. subsidiary of U.K.-basedBAE Systems PLC.
The benefits of the contract go beyond the jobs it creates for BAE and its
contractors, said Tom Smythe, military affairs coordinator for the Hawaii
Department of Business, Economic Development & Tourism. Having the ships
docked in Hawaii for repairs also means the crews will be stationed here during
that time, which Smythe said is also a benefit for the local economy…
The link between campaign donations and political policy was brought into sharp
focus by the campaign finance scandals that erupted during the 1996 campaign.
Even jade observers were started by the Clinton administration’s selling of the
Lincoln bedroom to the highest bidder, and its organizing of White House coffee
klatsches to reward donors and encourage them to make additional contributions.
But political contributions are only one way that big business wins favors in
Understanding how the capital works, and how business prospers here, requires a
trip through the world of beltway lobbying and a review of the vast army of hired
guns working at the behest of Corporate America.
Dollar for dollar, lobbying is a better investment than campaign contributions—
one reason business spends far more on the former than on the latter.
In 1996, Philip Morris coughed up $19.6 million for lobbying programs vs. $4.2
million for campaign donations (making it the leader in both categories). The same
pattern holds true with other firms.
For 1996, Georgia Pacific spent $8.9 million for lobbying and handed out
$527,000 in political money. Corresponding figures for AT&T are $8.4 million vs.
$1.8 million; for Phizer, $8.3 million vs. $775,000; for Boeing, $5.2 million vs.
$770,000; for ARCO, $4.3 million vs. $1.4 million; for Lockheed, $3.5 million vs.
$1.26 million; for FedEx, $3.1 million vs. $1.9 million; for Dow Chemical$1.5 million
In addition to in-house efforts, most big corporations spend lavishly for outside
lobbying firms. Lockheed, for example, retains at least two dozen beltway lobby
shops to supplement its own efforts, while FedEx has an additional 10 firms on
In 1996, Boeing hired seven outside lobby shops for the sole purpose of pushing
renewed Most Favored Nation trade status for China, paying them a combined
total of at least $160,000 for their efforts.
While corporate lobbying has long been a major force in American politics, it has
been greatly transformed during the past few decades. Today, many efforts
involve stealth lobbying— the chief tactic here is mobilizing fake “grassroots”
campaigns— or with indirect methods, such as buying research from friendly
“think tanks” in order to influence Congress and public opinion.
All of this makes calculating corporate lobbying expenditures nearly impossible,
though it’s safe to say that lobbying has now become a multi-billion dollar-per-year
When you consider the enormous benefits bestowed on Corporate America by the
White House and Congress, the big sums companies spend to win favors are
revealed as chump change. Lockheed’s combined expenditures on lobbying and
campaign contributions were about $5 million in 1996. That same year, Lockheed’s
lobbyists, with help from other arms makers, won approval for the creation of a
new $15 billion government fund that will underwrite foreign weapon sales.
In 1996, Microsoft spent less than $2 million for its combined lobbying and
campaign contribution expenditures (the former accounted for more than two-thirds of that amount). The following year, Congress awarded the company tax
credits worthhundreds of millions of dollars for the sale of licenses to
manufacture its software programs overseas….
It is indisputable … that corporate citizens who retain lobbyists have an enormous
advantage in Washington over the regular ones who merely vote.
Tommy Boggs, perhaps Washington’s best known influence peddler, charges $550
per hour for his services. That’s a drop in the bucket to Philip Morris, but Boggs’
rate would eat up the average salary earner’s entire annual income after a mere 43
hours of lobbying activity.
That lobbying has corrupted the political system is no secret. During his 1992
presidential campaign, Bill Clinton promised to “break the stranglehold the special
interests have on our elections and the lobbyists have on our government.”
Such promises (like many others the president made) were forgotten as soon as
the election votes were counted.
Clinton picked Vernon Jordan, a top lobbyist and one of Washington’s consummate
political insiders, to head his presidential transition team. Among those selected
for top administration jobs were Ron Brown, a former colleague of Tommy Boggs
at the firm of Patton Boggs; Mickey Kantor of the powerhouse firm Manatt,
Phelps & Phillips; and Howard Paster, a former lobbyist for oil companies, banks
and weapons makers….
Republicans criticize Clinton for his coziness with special interests, but they
maintain the same intimate relationships with corporate lobbyists.
After winning control of Congress in 1994, the GOP house leadership met weekly
with “The Thursday Group,” a pack of lobbyists and activists who helped plot
legislative and media strategy on the “Contract With America”.
Included in this elite troupe were hired guns representing the U.S. Chamber of
Commerce, the National Federation of Independent Business, and Americans for
Tax Reform. . . .
If you assume that campaign money is so distasteful that you don’t want to hear
any more about it, you’re closing your mind to one of the most fundamental and
most fascinating stories in American politics. It’s okay to be outraged— more than
okay. But it’s wrong to be so disgusted that you don’t want to read another word.
Take, for example, the real-life picture we should have of our elected officials.
It’s wrong to think of them sitting studiously through boring congressional
hearings or making speeches to Rotary Club luncheons.
Think of them, instead, in windowless offices grubbing for money almost every
spare moment they get. Fund-raising is so essential to their reelections yet takes
so much time that politicians have invented a virtual science of efficient
Here’s the typical scene: The lawmaker or would-be lawmaker sits at a desk
surrounded by telephones. Aides seated nearby (there are usually 2 or 3 aides,
but I’ve heard about instances involving as many as 8) dial up contributors and stay
on the line until the would-be fund giver comes on. Then they put that person on
hold until the lawmaker gets to their line.
The politician is thus able to move seamlessly from one begging session to another,
and groveling can go on nonstop.
So there’s a picture for the ages: democracy on hold, literally.
Here’s another one: Around a conference table in the suite of the Speaker of the
House … a dozen lobbyists and trade-association executives plot strategy with the
highest-ranking lawmakers in Congress. This isn’t an occasional meeting. It
happens every week. On Thursday. At 11 AM. It even has a title: The Thursday
The point is that money men are players. They aren’t dark figures lurking in the
background, plotting political intrigue. They are central to the drama. They make
a difference in the way laws are made and implemented. Without them, the
politicians wouldn’t be politicians. And they insist on, and invariably get, politicians’
That’s the way it works….
Money, money everywhere.
But not all of it carries the same weight. And not all of it goes to candidates. The
laws and rules that govern political fund-raising are many and peculiar. They also
are largely ignored. . . .
At the federal level, the most that any person can donate to a candidate is $1,000
per election. Political-action committees (PACs), which are amalgams of individuals,
can give $5,000. But that’s just the start. Individuals, labor unions, and
corporations can give as much as they want to political parties.
That’s the so-called soft money or, more appropriately, sewer money.
This money, in effect, is used to make a mockery of the limits on direct giving to
Think of it as legal cheating….
* * * * *
March 31, 2003
HALF OF CLINTON’S 100 TOP AIDES ARE NOW
LOBBYING, REPORT SAYS
By Jonathan Salant, Associated Press
WASHINGTON – Many top officials of the Clinton administration remain in
Washington, trying to influence actions of their successors in government.
A study being released today by the Center for Public Integrity, a nonpartisan
watchdog group, ranked the top 100 officials serving when Bill Clinton left office
two years ago and found 51 now lobby the government or work for companies that
do. The center said the number is about the same as in previous administrations.
“This shows systematically what happen to an administration when they’re tossed
out on the street,” said Charles Lewis, the center’s director. “Where do they go?
They basically go to the bank.”
Clinton administration officials working for lobbying firms include three Cabinet
secretaries – Bruce Babbitt of Interior, Dan Glickman of Agriculture and Rodney
Slater of Transportation. Two others, former Secretary of State Madeleine
Albright and former Defense Secretary William Cohen, have formed international
business consulting groups. Others work for companies regulated by the
government or serve on their boards.
Herbert Alexander, professor emeritus of political science at the University of
Southern California, said the Clinton administration officials are following a well-worn path. “Public officials find it much more lucrative to continue their careers
after government service through representation of special interests,” Alexander
Clinton administration veterans also went into academia. Glickman spends most of
his time running the politics institute at the Kennedy School of Government at
Harvard University. Former Housing Secretary Andrew Cuomo, who failed in an
effort to become governor of New York as his father, Mario, was, is a senior
fellow at the school.
Former Treasury Secretary Lawrence Summers is president of Harvard, and ex-Health and Human Services Secretary Donna Shalala is president of the
University of Miami.
The majority, however, traveled the well-worn path from government worker to
Steve Ricchetti, Clinton’s deputy chief of staff, opened a lobbying firm and landed
such clients as AT&T, General Motors Corp. and Eli Lilly and Co. Former
Deputy Defense Secretary Rudy deLeon became the chief lobbyist for Boeing Co.,
a major defense contractor.
Most government officials must wait one year before lobbying their former
agencies. Likewise, member of Congress can’t lobby their former colleagues for a
Shortly after taking office, Clinton issued an executive order that required
officials in his administration to wait five years after leaving office before lobbing
government agencies. He revoked the order in late December 2000, weeks before
“It just means the revolving door is alive and well in Washington,” Lewis said.
“It doesn’t matter what party you’re in, the color of money is green. When
you’re one of the top officials in an administration, you’re valuable because of your
connections and your perceived clout and your perceived access.”
* * * * *
April 2, 2002
by David Corn, The Nation ( http://www.thenation.com )
Taiwangate?–Bush Appointees Linked
to Secret Slush Funds
Allegations that a past president of Taiwan illegally set up a $100 million secret
slush fund to pay for overseas intelligence, propaganda, and influence operations
are causing ripples that have reached into the Bush Administration.
At the end of March, Next, a Hong Kong magazine, and the China Times, a daily
newspaper in Taiwan, reported that classified documents indicated Lee Teng-hui,
Taiwan’s president in the late 1990s, established a secret account in the National
Security Bureau to underwrite various activities, including running spy networks in
China and elsewhere. The articles, which noted the NSB had made payments to
Japanese officials (including former prime minister Ryutaro Hashimoto) and which
identified Taiwanese intelligence officials stationed abroad, detonated a scandal in
The government did not deny the veracity of the reports, and the Taiwanese news
media reported Taiwan’s security services were recalling personnel from outposts
around the world, including those in the United State, Japan, France and China.
The Next magazine reporter who broke the story, Hsieh Zhong-liang, was
charged with breaching national security and banned from leaving the country; his
magazine’s office was raided by the police. Hsieh wouldn’t reveal the source who
provided the documents, but other journalists speculated the information had
come from a former National Security Bureau (NSB) finance officer who is on the
run and alleged to have embezzled $5.5 million.
The leaks damaged the current government, which is controlled by the Democratic
Progressive Party, for the DPP is allied with the Taiwan Solidarity Union, a pro-independence party led by ex-President Lee. Amid all the fuss, Lee called off a trip
to the United States.
The scandal has tainted two senior Bush officials in the State Department. Sing
Tao Daily, a Hong Kong newspaper, reported that Lee used the secret account–which had not been approved by Parliament–to pay Cassidy and Associates, one of
Washington’s largest lobbying firms, to work for Taiwan, and the newspaper said
the slush fund had covered the costs of trips made to Taiwan by Carl Ford Jr., a
Cassidy and Associates consultant.
Ford is now assistant secretary of state for intelligence and research.
Sing Tao, citing the classified documents, also reported James Kelly, whom Bush
last May appointed assistant secretary of state for East Asian and Pacific
affairs, received money from this fund when he headed the Pacific Forum, a
Honolulu-based think tank that is an arm of the Center for Strategic and
International Studies, which is based in Washington, DC.
Sing Tao maintained Lee drew $100,000 from the clandestine account in February
1999 to pay the Pacific Forum to support a former Japanese defense official’s
study at Harvard University.
Both Ford and Kelly are significant players in crafting Bush Administration policy
on Taiwan. Ford is a longtime expert on Chinese affairs. He was a China analyst
with the CIA in the 1970s and the CIA’s National Intelligence Officer for East
Asia in 1985. He has been a Capitol Hill staffer, a Pentagon official, and a longtime
advocate of U.S. military assistance to Taiwan. Kelly was director of Asian
affairs for the National Security Council during the Reagan Administration. He
also served in the Pentagon in the early 1980s.
In the late 1999 and 2000, Ford was indeed a consultant to Cassidy and
Associates, according to Justice Department records and a spokesman for the
firm. During this time, Cassidy and Associates was mounting a vigorous campaign on
Taiwan’s behalf, lobbying Congress, the State Department, the Pentagon, the
White House and producing pro-Taiwan media materials, including a website,
position papers, and a newsletter. (This was a joint effort with its sister company,
Powell Tate.) Ford wrote op-eds, letters-to the editor and testified before
Congress in support of Taiwan’s positions, usually identified as a consultant to the
Taiwan Research Institute, a think tank based in that country.
A spokesman for Cassidy and Associates says the firm was paid by the Taiwan
Research Institute. Justice Department records show that Cassidy and Associates
received $3.2 million from 1997 to 2000 for this work. “It was our understanding
that the TRI money came from private sources,” says the Cassidy and Associates
spokesman. “TRI, to us, was a private, nongovernmental think tank. They engaged
us and they paid us.”
But perhaps the money was part of an undercover government effort to influence
politics and policy in the United States. Would it make any difference to Cassidy
and Associates if the money had come from a slush fund, funneled through a
“That’s a metaphysical question,” the spokesman replies. “I’m not sure it makes
any sense for me to respond.”
Did Ford take trips to and from Taiwan as part of his work on Cassidy and
Associate’s Taiwan account?
“We really don’t get into that sort of information on our contacts with clients,”
the Cassidy and Associates spokesman says. (If you’re wondering why the Cassidy
and Associates spokesman is not named here, it’s because the person said he would
talk only if I agreed not to use his name.)
Jay Farrar, a spokesman for the Center for Strategic and International Studies
says his think tank has examined its financial records and found no transactions
between any Taiwanese government entity and thePacific Forum or the CSIS that
correspond to the allegations in the Asian media.
He asserts there was no evidence “in our records” of any payment made by
Pacific Forum or CSIS to Harvard University.
CSIS has received general support funding from the Taipei Economic and Cultural
Representative Office ($250,000 or more in 2001), Farrar says. But he notes this
is a governmental office that routinely makes grants overseas. “We don’t see any
funds from the NSB,” he adds.
Farrar does note CSIS and Pacific Forum employees are free to do outside
consulting: “Jim Kelly had that same opportunity when he was at Pacific Forum; he
may have taken advantage of that.”
But Farrar says CSIS that has no knowledge whether Kelly did and that CSIS has
not had any “formal contact” with Kelly regarding the Taiwan allegations. Has CSIS
asked the Taipei Economic and Cultural Representative Office if the money it gave
CSIS may have come from Lee’s secret slush fund? No, says Farrar, remarking,
“It’s an interesting prospect to go back and ask people who gave you money, is this
legal or not?”
Neither Ford nor Kelly will address the media reports from Asia. A woman
answering the phone in Ford’s office said he has “no comment” and would not take
questions on the subject. Kelly’s office referred me to a spokesman at the State
Department who said, “There will be no response from my office. This has nothing
to do with the State Department.”
Shouldn’t the State Department have some response?
To recap: news reports in Taiwan and Hong Kong, citing classified documents, say
that as part of ex-President Lee’s covert effort to win friends and influence
governments around the world, key members of the pro-Taiwan lobby in the United
States received money, wittingly or not, from a slush fund. And two alleged to have
done so are currently U.S. government officials.
During the campaign finance scandal of the Clinton administration, there was much
huffing–mostly among Republicans–about a supposed Chinese campaign to shape
politics in the United States. The more rabid right-wingers accused Bill Clinton of
selling out the United States to Beijing. But several of the so-called Chinese
connections tracked back to Taiwan, not China, and firm evidence of a Chinese plot
never fully materialized. (There were hints.)
With the recent media reports out of Taiwan, there is a much stronger case that
it was Taiwan, that deployed illegal and covert funds to influence U.S. policy–as
well as policy in other nations.
But there has yet been no outrage here. The U.S. media has not caught on to the
story, and Ford, Kelly and the State Department have been able to get away with
their no-comments-at-all response.
Perhaps the say-nothing strategy will work. But the story might not be over.
Professor Wu Yu-shan of the National Taiwan University tells the BBC that the
leaks will “go on and on.” . . .
MONEY TALKS: The chairman of Makoto Bank has organized a US$2
million lobbying effort in Washington for the
Taiwan Security Enhancement Act
By Stephanie Low, Taipei Times
Opposition legislators were eager yesterday to know the identity and motives of a
new Taiwanese client that has recently taken up a US$2 million contract with the
US public relations consultants Cassidy and Associates to lobby for passage of
the Taiwan Security Enhancement Act through the US Congress.
“We don’t understand why a company would spend US$2 million [to lobby the US
Congress]. Is this a secret channel of President Chen Shui-bian and is this where
our foreign and cross-strait policies will be decided in the future?” KMT Legislator
Lin Yi-shih asked during the third general questioning session with Premier Tang
“We don’t understand why a company would spend US$2 million [to lobby
the US Congress]. Is this a secret channel of President Chen Shui-bian
and is this where our foreign and cross-strait policies will be decided in
the future?”– KMT Legislator Lin Yi-shih
The Washington Post first reported on July 6 that Cassidy and Associates had
filed to lobby on behalf of the Taiwan Studies Institute (TSI), formerly known as
the Makoto Foundation and chaired by Chen J. Lin.
Lin is currently chairman of the Taiwan-based Makoto Bank and a national policy
adviser to Chen. In addition, Lin reportedly was a major financial sponsor of the
pro-independence movement in Taiwan.
The TSI signed the contract with Cassidy and Associates just after the Taiwan
Research Institute’s (TRI) contract had expired at the end of June, according to
the Washington Post. Over the past six years, Cassidy and Associates had
maintained a contract totaling about US$10 million with TRI — a think tank headed
by Liu Tai-ying, former chairman of the KMT Business Management Committee.
The most well-known achievement of the firm was its securing approval for the
high-profile to the US visit of former president Lee Teng-hui in 1995.
Lin said the government should not allow just anyone to hire lobbyists to lobby a
foreign country as they wish.
“President Lee still receives praise today for securing his trip. But we don’t have
confidence in the DPP. We wonder if the new government can get the same effect.
We’re afraid it will endanger our national security,” Lin Yi-shih said.
Premier Tang replied saying that lobbying is completely legal in the US, and the
Taiwanese government cannot interfere in an action taken by a person based on his
or her “personal political ideal.”
“We have no idea if there is any connection between President Chen and TSI,”
At Lin Yi-shih’s request, however, Tang promised he will have relevant authorities
complete an investigation in a month on TSI’s lobbying deal to ensure it does not
threaten Taiwan’s security.
Chen J. Lin yesterday also showed up to clarify the purpose of the lobbying deal,
saying it is not politically motivated at all.
“Especially in America, we need to do the job to make Taiwan’s democratic and
economic achievements known,” Chen J. Lin said.
The Makoto Bank chairman explained that the contract with Cassidy and
Associates will last for one year, and the US$2 million fee will be paid for by 10
National Taiwan University (NTU) alumni.
On his connection with Chen, he said the president and himself both graduated
from NTU’s law school, and they became acquainted when Chen was practicing law
in Taipei years ago.
“This matter is as simple as that … there isn’t any political linkage,” Chen J. Lin
WASHINGTON – Taiwan’s new president, Chen Shui-bian, may have been elected
as a reformer, but he isn’t bringing a fresh broom to Washington.
In fact, it turns out that Chen is going to do business here the same way his
predecessor, Lee Teng-hui, did: by having his friends and financial backers pay
large sums of money to a Washington lobbying firm.
In fact, backers of Chen–the first president elected from the Democratic
Progressive Party, which long has supported Taiwan’s independence from China–will employ the very same Washington lobbying firm as did the Nationalist Party
(Kuomintang), which ruled Taiwan for half a century.
Documents filed here last week show that an entity vaguely called the Taiwan
Study Institute will pay $2 million over the coming year to Cassidy & Associates,
a branch of Shandwick International.
Cassidy, a firm made up largely of former government officials, earns a tidy profit
by lunching and chatting up people on Capitol Hill and in the executive branch; its
other foreign clients include Saudi Arabia and Gabon.
And what exactly is the “Taiwan Study Institute”? Its leading figure is Lin Chen-yi, a Taiwan banker whom Chen has known since law school, who has served as one
of Chen’s and the DPP’s leading donors and who is now one of Chen’s main advisors.
The $2-million lobbying contract “has nothing to do with politics, nor is it related
to President Chen or his administration,” Lin insisted in Taiwan last Friday.
That’s odd, because politics is Cassidy’s raison d’etre. Soon after the firm was
first retained for $1.5 million a year by Lee Teng-hui’s associates in 1994, it
lobbied hard, and ultimately successfully, to win Lee a visa for an unprecedented
trip to the United States.
At the time, members of the DPP, then the leading opposition party, attacked the
Cassidy contract as an example of how the KMT used its financial clout to twist
Taiwan’s foreign policy for its own purposes.
During Chen’s campaign for Taiwan’s presidency, he promised he would change the
way the government had operated under the KMT. His overall aim, he told me last
January, was “to reduce the influence of money” on Taiwan’s political life.
The interesting question is why Chen seems to have been persuaded that Cassidy’s
work was irreplaceable. What, exactly, does the firm do for Taiwan? After all,
Taiwan already has its own unofficial embassy in Washington, called the Taipei
Economic and Cultural Representative Office.
Public relations? Lin claimed last week that Cassidy will help inform Americans
about Taiwan’s democratization. But Taiwan’s diplomats in the United States have
more than enough phones, faxes and copying machines to do that work themselves.
Lobbying for legislation? By one theory, Cassidy plays bad cop to TECRO’s good
cop. If Taiwan’s diplomats were to work Capitol Hill or the press too assiduously,
the State Department would rebuke them. So Cassidy does the job.
Maybe so, but one also has to wonder if this work is worth $2 million a year.
Lobbyists’ Influence Seen as ‘Overstated’
The main legislation concerning Taiwan on Capitol Hill is called the Taiwan Security
Enhancement Act, which would strengthen U.S. defense links to Taiwan.
When that bill passed the House a few months ago, the most active organization
was not Cassidy but a nonprofit grass-roots group called the Formosan Assn. for
Public Affairs, which represents 500,000 Taiwanese Americans–many of them in
“A lot of the supposed influence of lobbyists on Capitol Hill tends to be
overstated,” observed one congressional staff member who has worked on the
Taiwan legislation. Cassidy’s most important function may lie elsewhere. Earlier
this year, one member of Lee Teng-hui’s government explained the contract to me
“The real purpose is to collect accurate political intelligence about what’s
happening in Washington. Lee Teng-hui didn’t trust the reports of TECRO and his
own foreign ministry. A t $4.5 million [over three years], it was a bargain.”
Taiwan’s new president has probably decided to perpetuate this deal at the
suggestion of Lee. Since the March election, Chen has made courtly public visits to
pay homage to his predecessor, and the two men have engaged in some private
In fact, after the election, there was speculation that Cassidy would just keep
working for Lee and his allies, and they would have passed on whatever they
learned to Taiwan’s new president. But that would have looked like too cozy an
arrangement between the KMT’s ex-president and the DPP’s leader.
Elected to Change Government Culture
In the end, the renewal of Cassidy’s contract is important for what it tells us
about Taiwan’s new president.
Chen Shui-bian has been trying to ease tensions with China, and for that endeavor
he deserves credit. But he was also elected to change the way the Taiwan
To be sure, Chen is doing no more than China and Taiwan’s KMT have done before
him. But Chen promised to be different. In his inaugural speech last month,
Taiwan’s president proclaimed “the beginning of a new era.”
At least in Washington, Taiwan’s new era is beginning to look a lot like the old
NOW, PUT ON YOUR DARK SHADES AND TAKE A
SHORT WALK TO SEE
THE BIRDS IN THE LOBBY
Akin, Gump, Strauss, Hauer & Feld – One of the largest nests of Lobbyists in
In 1998, this firm declared total lobbying income of $11,800,000. Among their
clients are the likes of Alliance of American Insurers; America Online; American
Express; American Financial Group; Apollo Advisers; AT&T;Biotechnology
Industry Organization; Boeing Co.;Capital Gaming International; CBS Corp;
Citigroup; Korean International Trade Assn;Miller & Chevalier; National Hockey
League; Pfizer; PG&E Corp; Pharmaceutical Rsrch & Mfrs of America; Philip Morris;
Pohang Iron & Steel; Samsung Electronics; Sri Lanka Apparel Exporters Assn;
AOLTime Warner; and Warner-Lambert, just to mention a few.
* * * * *
December 11, 2001
The White House connection: Saudi
‘agents’ close Bush friends
by Maggie Mulvihill, Jonathan Wells and Jack Meyers, Boston Globe
A powerful Washington, D.C., law firm with unusually close ties to the White House
has earned hefty fees representing controversial Saudi billionaires as well as a
Texas-based Islamic charity fingered last week as a terrorist front.
The influential law firm of Akin, Gump, Strauss, Hauer & Feld has represented
three wealthy Saudi businessmen – Khalid bin Mahfouz, Mohammed Hussein Al-Amoudi and Salah Idris – who have been scrutinized by U.S. authorities for
possible involvement in financing Osama bin Laden and his terrorist network.
In addition, Akin, Gump currently represents the largest Islamic charity in the
United States, Holy Land Foundation for Relief and Development in Richmond,
Holy Land’s assets were frozen by the Treasury Department last week as
government investigators probe its ties to Hamas, the militant Palestinian group
blamed for suicide attacks against Israelis.
Partners at Akin, Gump include one of President Bush’s closest Texas friends,
James C. Langdon, and George R. Salem, a Bush fund-raiser who chaired his 2000
campaign’s outreach to Arab-Americans.
Another longtime partner is Barnett A. “Sandy” Kress, the former Dallas School
Board president who Bush appointed in January to work for the White House as an
“unpaid consultant” on education reform. . . .
American Enterprise Institute for Public Policy Research(AEI) – A really,
reallyBIGnest of lobbyists!
Flashback from the internet, author unknown, updated: February, 1991:
In 1989 the members of the board of trustees included: chairman, Willard C.
Butcher of Chase Manhattan Bank; vice-chairman, Paul F. Oreffice of Dow
Chemical Corp; Robert Anderson, Rockwell International Corp; Griffin B. Bell, King
& Spalding; treasurer, Winton M. Blount of Blount, Inc. ; Edwin L. Cox, Cox Oil and
Gas; Christopher C. DeMuth; Charles T. Fisher III, National Bank of Detroit; Tully
M. Friedman, Hellman & Friedman; Christopher B. Galvin, Motorola, Inc. ; Robert
F. Greenhill, Morgan Stanley & Co; D. Gale Johnson, AEI Council of Academic
Advisers; Richard B. Madden, Potlatch Corp; Robert H. Halott, FMC Corp; Paul W.
McCracken, Edmund Ezra Day University; Randall Meyer, Exxon Co; Paul A. Miller,
Pacific Enterprises; Richard M. Morrow, Amoco Corp; Paul H. O’Neill, Aluminum
Co. of America; David Packard, Hewlett-Packard Co; Edmund T. Pratt, Jr,
Pfizer Co; Mark Sheperd, Jr, Texas Instruments Inc; Roger B. Smith, General
Motors Corp; Richard D. Wood, Eli Lilly and Co; Walter B. Wriston, former
chairman of Citicorp.
Officers in 1989 were: Christopher C. DeMuth, president; David B. Gerson,
executive vice president; Patrick Ford, vice president for public affairs.
The council of academic advisers were: D. Gale Johnson, chairman; Gary S. Becker;
Donald C. Hellmann; Gertrude Himmelfarb; Nelson W. Polsby; Herbert Stein;
Murray L. Weidenbaum; and James Q. Wilson.
Paul McCracken was president in 1986. William Baroody, Jr. was president in
1985. Michael Novak was director of social & political studies in 1985.
Among the scholars and fellows at AEI in 1988 to 1989 were Jeane Kirkpatrick,
Alan Keyes, Nobel Laureate James Buchanan, International Trade Commission
Chair Anne Brunsdale, White House Counsel C. Boyden Gray, Constantine C.
Menges, Joshua Muravchik, Michael Novak, Richard N. Perle, Herbert Stein, Ben
J. Wattenberg, and Irving Kristol.
Other government notables from the Nixon, Ford, and Bush administrations that
worked at AEI include: William E. Simon, Carla and Roderick Hills, L. William
Seidman, and former President Gerald Ford.
American Enterprise Institute (AEI) is a 501(c)((3) tax-exempt organization
founded in 1943 by Lewis H. Brown, then chairman of the board of Johns-Manville
Corp. Its original purpose was to be a spokesperson for big business and to
promote through publications and seminars the ideas and theories of free
enterprise, including maintenance of a free economic order, resolute national
defense, and “tradition-proven” cultural & political values. While not as far to the
right as some of the more recently established think tanks, AEI is staunchly anti-communist and pro-military. It has housed a number of “cold warriors” among its
ranks, and through conferences, the media, and publications has supported
“freedom fighters” such as Jonas Savimbi.
In the 1960s the organization, determined to gain more corporate funding and
expand its influence, applied for tax-exempt status, which it received in the mid-1960s after a two-year examination by the IRS. At the same time it became more
overtly political in its goals. In its new guise, a main focus of AEI is to influence
national policy and to place its scholars into influential positions in government.
In the mid-1970s AEI joined with other conservative think tanks–backed by
greatly-expanded corporate funding–in a concerted effort to influence public
policy in ways favorable to private enterprise. These groups churned out “books,
books, and more books” attacking liberal “myths” and proposing specific
conservative policy suggestions. Through effective public relations and
sophisticated media campaigns, AEI has attacked “uncontrolled government
spending, excessive regulation, and the evils of bureaucracy. “
Under the leadership of the late William Baroody, Sr. , AEI, paralleling the
growth of the conservative Republican movement in the U. S. , grew in the mid-1970s from a group of twelve resident “thinkers” to a sophisticated, well-funded
organization with 145 resident scholars, 80 adjunct scholars, and a large
In 1984 author John Saloma wrote that “[AEI] has developed perhaps the most
effective public-relations campaign for disseminating political ideas that has ever
been mounted. ” Major factors contributing to AEI’s phenomenal growth were the
establishment of political action committees and a shift in focus by conservative
foundations to influencing the direction of politics.
William Baroody, Sr. was succeeded in the AEI presidency by his son William
Baroody, Jr. In 1986 William Baroody, Jr. resigned and was replaced by Paul W.
McCracken, who had been the chairman of AEI’s Council of Academic Advisers for
more than two decades. (23) Current president Christopher DeMuth took over
from McCracken in late 1987.
AEI began publishing its own periodicals in 1977. Among its periodicals are Public
Opinion, an anti-regulation journal called Regulation, AEI, Foreign Policy and
Defense Review, and The AEI Economist. Every year AEI publishes numerous
books and reports generated by its scholars and fellows. AEI makes these
publications available to AEI-sponsored Public Policy Research Centers in more
than 200 U. S. colleges and universities.
Not only has AEI been influential in its own right, but it has fostered other think
tanks and independent publications. The Center for Strategic and International
Studies (CSIS), a rightwing think tank once connected to Georgetown University,
is a spinoff from AEI as is the Center for the Study of American Business at
Washington University in St. Louis.
This World, a publication of the Institute for Educational Affairs (a group
started by William E. Simon and Irving Kristol of AEI) is another spinoff that
aims to combine AEI’s conservative positions with moral and religious ones.
At the time Ronald Reagan came into the presidential office in 1980, AEI had five
centers of study: Center for the Study of Government Regulation; Economic
Policy; Political and Social Processes; Legal Policy; and Religion, Philosophy, and
It was well prepared to support the administration’s conservative economic
policies. Currently AEI research focuses on three broad areas: economic policy
(domestic and international) led by Marvin Kosters; foreign and defense policy led
by Jeane Kirkpatrick; and social and political studies led by conservative columnist
and religious activist Michael Novak.
AEI headquarters are on Pennsylvania Avenue half way between the White House
and the “Hill. “
AEI’s budget in 1975 was $4 million; in 1985 it was $12 million with 51 percent
coming from corporate donations. AEI’s income in 1987 was $9 million and in 1988
was $10 million.
AEI has received major contributions from a battery of very conservative
foundations, including the Smith-Richardson Foundation, theOlin Foundation, the
Scaife Foundation, and the J. Howard Pew Freedom Trust.
In 1985 Olin, headed by former AEI associate William E. Simon, gave AEI a total
of $197,499. In the same year AT&T gave AEI $40,000; Metropolitan Life
$30,000; Morgan Guaranty Trust Co Of New York Charitable Trust gave $35,000;
Smith-Richardson Foundation $64,000; Proctor and Gamble Fund $125,000; TRW
Foundation gave $15,000; U. S. Steel Foundation donated $40,000; and Shell
Companies Foundation gave $85,000. (11)
Major foundation support for AEI in 1985 came from: the General Electric
Foundation–$40,000; Amoco Foundation-$285,000; Ford Motor Company
Foundation–$100,000; American Express Foundation–$25,000; AT&T Foundation
$40,000; Eastman Kodak Charitable Trust–$75,000; the Henry Luce Foundation-$75,000 John M. Olin Foundation–$297,000; Texaco–$50,000; Smith-Richardson
Foundation–$290,000; The Procter & Gamble Fund $125,000; the J. Howard Pew
Freedom Trust–$875,000; and the Shell Companies Foundation–$85,000. Other
smaller funders included BankAmerica Foundation, Gates Foundation, Metropolitan
Life Foundation, and PPG Industries. (35)
Major funders in 1986 included: the General Electric Foundation–$80,000;
Amoco–$450,000; Kraft Foundation-$147,000; Ford Motor Company Fund–$100,000; General Motors Foundation– $200,000; Charles E. Culpepper
Foundation–$50,000; Eastman Kodak Foundation–$50,000; the J. M. Foundation–$50,000; the Henry Luce Foundation–$66,000; Metropolitan Life Foundation–$115,000; the Proctor & Gamble Fund–$135,000; the J. Howard Pew Freedom
Trust–$800,000; Rockwell International Corporate Trust–$160,000; and Shell
Companies Foundation-$85,000. Among the smaller funders were: Gates
Foundation, Santa Fe Southern Pacific Corporation, Chrysler Corporation, Charles
Stewart Mott Foundation, General Mills Foundation, Pillsbury Company Foundation,
Prudential Foundation, American Express Foundation, AT&T Foundation, Corning
Glass Works Foundation, Morgan Guarantee Trust, Smith-Richardson Foundation,
Alcoa Foundation, and PPG Industries.
The Lynde and Harry Bradley Foundation, Milwaukee, WI, gave $1 million grant for
a two year foreign policy study in March, 1987.
AEI, unlike some think tanks, has no endowment-something which has led the
organization into financial embarrassment in 1985 when its operating budget
outstripped its donations by 25 percent.
AEI has received financial assistance from the U. S. International Development
Cooperation Agency of the Agency for International Development (AID). In
1982 it received $33,000 to support a conference on constitutionalism and
democracy; in 1983 it received $59,140 for a similar conference; in 1984 support
for the conference rose to $74,269; and in 1985 AEI received $74,269 for the
conference and a similar amount for public policy research. (19,20,21,22)
AEI’s main business is to promote the advancement of free enterprise capitalism
and to place its people in influential governmental positions. Its activities center
around self-promotion and promotion of the ideas it wants to see implemented.
AEI sends a steady flow of editorials to more than 100 newspapers across the
country. AEI held televised Public Policy Forums, aired on more than 600
television and radio stations in 1982, in which it advocated conservative positions
on a wide variety of subjects. Its fellows and scholars regularly appear on national
television as “experts”.
Each summer AEI holds a World Forum for chief executives of corporations where
attendees are expected to make financial contributions to the think tank. The
forum is hosted by former president Gerald Ford at Aspen, Colorado. (8)
Annually AEI gives the Francis Boyer Award, sponsored by the Smith-Kline
Beckman Corporation. Past award winners include: Gerald Ford, Arthur Burns,
Henry Kissinger, Jeane Kirkpatrick, Robert Bork, and in 1988, then-President
In 1980 AEI used grants from Reader’s Digest Foundation and the DeWitt
Wallace Fund to establish the DeWitt Wallace Chair in Communications in a
In 1983 AEI sponsored a forum on “War Powers and the Constitution,” prompted
by two questionable military actions authorized by President Reagan – the invasion
of Grenada and the dispatch of Marines to Lebanon.
Among the panel members was then-Representative Richard Cheney, the current
Secretary of Defense and National Security Adviser Brent Scowcroft. Both
men were opposed to the War Powers Resolution with Cheney stating that the
resolution“is an unwise and virtually unworkable intrusion by the legislative
branch into the powers and prerogatives the president needs to lead the
United States in a very dangerous and hostile world.”
AEI along with other conservative groups such as the Council for Inter-American
Security and Citizens for America, has been credited with a leading role in
developing and implementing the Reagan administration’s Nicaraguan contra
Jeane Kirkpatrick, Undersecretary of Defense for Public Policy Fred Ikle, Vice
President George Bush, and Roger Fontaine – major players in contra policy – are
all former AEI scholars and associates.
AEI, with corporate directors from American Cynamid, Dow Chemical, and Chase
Manhatten Bank – all corporations with profitable operations in South Africa –
supported the pro-apartheid government of South Africa.
In 1988 AEI published 42 books and over 400 articles and research papers on a
wide variety of policy issues. AEI scholars and their work appeared far more
frequently on national media than those of other research institutes. AEI held
seminars and conferences weekly on key issues confronting our society such as
employment and income, agriculture, international trade and finance, regulation,
foreign and defense policy, exporting democracy and resisting communism. AEI
reports that its meetings were well attended by policymakers and congressional
AEI opposed the INF (intermediate-range nuclear forces) treaty that was
signed by the U. S. in 1988. A special AEI working group supported the
criticisms of former Assistant Secretary of Defense Richard Perle, an AEI
AEI is extremely well-connected on the political scene. Among those in the top
echelons of government who worked with AEI in 1988 were: then-Vice President
George Bush who spoke at AEI’s Annual Policy Conference; Israeli Prime Minister
Yitzak Shamir who spoke at an AEI conference; and Jeane Kirkpatrick, Robert
Bork, and Norman Ornstein who wrote books for AEI.
William Baroody Sr. took a leave of absence from AEI in the early 1960s to
organize Goldwater’s presidential campaign. AEI took the lead in making
“Goldwater conservatism” respectable.
Christopher DeMuth was known as the “deregulation czar” in his position as
administrator of the Office of Information and Regulatory Affairs during the
first term of the Reagan administration. DeMuth also worked as associate director
of the Office of Management and Budget. Prior to that DeMuth served as a
staff assistant to President Richard M. Nixon.
James Miller III went from AEI to the Reagan administration as Federal Trade
Commission chairman and than administrator of the Office of Management and
William Simon was Secretary of the Treasury during the Nixon administration.
Michael Novak campaigned for the creation of a White House Office of Ethnic
Affairs; he served as its adviser during the administrations of presidents Gerald
Ford and Jimmy Carter. He was appointed by President Reagan to act as chief of
the U. S. delegation to the United Nations Human Rights Commission in
David Packard was Under Secretary of Defense under Melvin R. Laird during the
Carla Hills is the U. S. Trade Representative under President Bush. She was
Secretary of Housing and Urban Development from 1975 to 1977 during the Ford
administration. She also served as Assistant U. S. Attorney in Los Angeles from
1958 to 1961 and Assistant Attorney General for the Civil Division of the Justice
Department in 1974 until she took over at HUD.
Roderick Hills, husband of Carla, served as counsel to President Gerald Ford in
1975. He was chairman of the Securities and Exchange Commission (SEC) from
1975 to 1977. Hills is chairman of the U. S. ASEAN Technical Center.
Constantine Menges was aCIA and National Security Council (NSC) official under
the Reagan administration. While serving with the NSC, Menges, along with Lt.
Col. Oliver North, attended the meetings of the Tuesday Group of the right-wing,
anti-communist, non-governmental organization, the American Security Council.
Menges, according to authors Sara Diamond and Richard Hatch, claims to be the
intellectual author of the Grenada invasion plan.
Alan Keyes was an aide to Jeane Kirkpatrick at the United Nations. He served as
former President Reagan’s Special Assistant for National Security Affairs during
which time he reportedly worked on covert funding for the Nicaraguan contras.
Keyes was the Assistant Secretary of State for International Organization
Affairs from 1985 to 1987.
Jeane Kirkpatrick was ambassador to the United Nations in the Reagan
Paul McCracken was chairman of the President Richard Nixon’sCouncil of
Economic Advisers from 1969 to 1971. He served on the Council from 1956 to 1959
under President Dwight D. Eisenhower.
AEI worked closely with the Business Roundtable, a militant, lobbying organization
formed in 1974. Members of the Business Roundtable were the chief executive
officers (CEOs) from 190 major corporations, including General Motors, General
Electric, IBM, AT&T, and Dupont. The business of the Business Roundtable is or
was business and the CEOs involved lobbied directly with the administration and
members of Congress. According to journalist Sidney Blumenthal, making
contributions to AEI was a pitch made at almost every policy committee meeting of
Jeane Kirkpatrick was a prominent member of the Coalition for a Democratic
Majority (CDM) and the Committee on the Present Danger (CPD). CDM is an
anticommunist group that was formed by the conservative wing of the Democratic
Party in 1972 to promote a strong military. Many of its members went on to join
the hawkish CPD. Kirkpatrick was also connected with PRODEMCA (Friends of the
Democratic Center in Central America). PRODEMCAused funds from Oliver
North’s illegal contra support network for media campaigns in favor of aid to
the Nicaraguan contras. Kirkpatrick has been on the “faculty” at the Center for
Strategic and International Studies (CSIS), a rightwing think tank sometimes
called “a parking lot for former government big shots. ” She also served on the
board of Lewis Lehrman’s conservative citizens lobbying group Citizens for
America and on the stridently anticommunist Committee for the Free World. She
was the vice president of the short-lived Nicaraguan Freedom Fund, a group
funded by the Unification church owned Washington Times which was supposed to
funnel aid to the Nicaraguan contras.
William Simon was chairman of the Nicaraguan Freedom Fund. He is or was on the
board of AmeriCares and is a longtime member of the Knights of Malta, both of
which were a part of the Nicaraguan contra supply network. Simon served on
the national council of PRODEMCA (Friends of the Democratic Center in Central
America). He is or was an international business counselor at CSIS where “The
William E. Simon Chair in Political Economy” is awarded annually to scholars of
the free enterprise system. Simon is or was a trustee at the Heritage Foundation
and has been connected with Accuracy in Media, the media watchdog group for
the Right. Simon is or was on the secretive Council for National Policy, a group
that considered itself the policy development body for the right.
Michael Novak has affiliations with the CPD and was a cofounder with Penn
Kemble of the Institute for Foreign Policy Analysis. He has been a Hudson
Institute fellow and on the advisory committee of the neo-conservative journal
The National Interest. Novak is on the board of the Institute on Religion and
Democracy (IRD), a neo-conservative religious activist group working to undermine
progressive movements within the religious community. Fellow conservatives from
AEI Richard John Neuhaus and Peter Berger are also on the IRD board. Novak
was on the board of directors of the Nicaraguan Freedom Fund.
Irving Kristol was a co-founder of CDM. He is the publisher of the National
Interest magazine and co-editor of the Public Interest magazine. Kristol was
managing editor of Commentary and former executive vice president of Basic
Books. He is a frequent columnist for the Wall Street Journal. Kristol is
credited with being the one who convinced big business that it would be to its
benefit to fund conservative think tanks.
Ben Wattenberg was a co-founder and is chairman of CDM. He is a major
producer of publications in support of neoconservative policies. He is portrayed on
public affairs shows as a “Democrat,” theoretically providing a liberal viewpoint.
Wattenberg, a staunch neo-conservative, was an outspoken supporter of the
policies of the Reagan and Bush administrations.
David Packard gave a substantial start-up grant to the pro-militaryCommittee on
the Present Danger. He has also been a leading fundraiser for AEI, the Hoover
Institution on War and Peace and the Center for Strategic and International
Carla Hills is on the board of directors of IBM, Corning Glass Works, American
Airlines, the Federal National Mortgage Association (Fannie Mae), the Henley
Group, andChevron Corporation. She was a member of the Trilateral Association
from 1977 to 1982. (44)
Constantine Menges received a $33,000 grant from the United States Institute
of Peace, a quasi-private, government-funded think tank that purports to work for
peaceful solutions to world conflicts.
Alan Keyes is a member of the South Africa Lobby in the United States, a group
supporting the pro-apartheid administration in South Africa. He left government
service to join the public relations firm of Black, Manafort, Stone, and Kelly to
assist in preparing for Angolan rebel leader Jonas Savimbi’s tour of Washington
DC. Keyes served on the World Freedom Foundation’s Bi-Partisan Commission on
Free and Fair Elections in Nicaragua. The World Freedom Foundation (WFF) is a
stridently anticommunist group and its representatives were denied visas to enter
Nicaragua to observe the 1990 elections because of their strong pro-contra bias.
Keyes is or was chairman of the rightwing citizens’ lobbying group Citizens for
America, a group which worked to support the Reagan agenda. Keyes is or was head
of the Council for Citizens Against Government Waste, a group promoting
implementation of the recommendations of the Grace Commission. He has
frequently been sought as a speaker by rightwing groups to defend the South
African apartheid government.
AEI received an $18,000 grant from the U. S. Institute of Peace for an analysis
of arms control in Western diplomacy.
President Ronald Reagan said of AEI in 1988:“The American Enterprise
Institute stands at the center of a revolution in ideas of which I, too, have
been a part. AEI’s remarkably distinguished body of work is testimony to the
triumph of the think tank. For today the most important American scholarship
comes out of our think tanks–and none has been more influential than the
American Enterprise Institute.”
Yet anotherCIA-Mafia drug connection: Richard Brenneke puts mob bossJohn
Gotti and CIA boss Donald Gregg in the middle of contra drug operations at
In Dec 1996, the Portland Free Press secured a copy of Richard Brenneke’s 21
June 1991 sworn-deposition before Congressman William Alexander, Jr, and Chad
Farris, chief deputy attorney general of Arkansas. . . .
We secured former congressman William Alexander’s fax number and sent him a
request for confirmation. We got more than we hope for – Jan 1997: “… the
Brenneke transcript, along with other evidence of money laundering by Barry Seal
at Mena, Arkansas, was delivered to Judge Walsh for action. Nothing followed. I
agree that the American people deserve to know the truth about our government.
Thank you for providing it. Good luck.” (signed Bill Alexander)
~ ~ ~
THE AMERICAN PEOPLE, since World War II, or World War I, or the Spanish
American War– take your choice– have witnessed the tip of many criminal icebergs.
The official investigations of the criminal icebergs almost always stopped at the
waterline. The other 90 percent of the criminal icebergs were never hauled onto
the beach for complete examination, prosecution and correction.
The criminal cases of 1980 to the present are in perfect harmony with this
honored tradition. This is, of course, why Americans are the most profoundly
ignorant people on planet earth. The illusion of knowledge is far worse than
knowing you don’t know.
The Iran-Contra-cocaine criminal iceberg was subjected to a series of bogus
investigations and damage control “exposes.”The Tower Commission and Select
Committee of the House and Senate on Secret Military Assistance to Iran and
the Nicaraguan Oppositionin 1987, began the damage control operation for
the Imperial state.
But the Hall of Shame did not stop with John Tower, Ed Muskie and Brent
Scowcroft or Dan Inouye and Lee Hamilton. It included Senator John Kerry
and his Special Counsel Jack Blum and Staff Aid Dick McCall. It reached to
the Special Counsel, Judge Lawrence E. Walsh …
The China lobby also counts on support from dozens of former government
officials –from the commercial, diplomatic and military establishment – who write
pro-China op-ed pieces, send letters to members of Congress and personally lobby
on the Hill. Many of these officials have money at stake in China, though this
rarely is noted when they shill for Beijing.
Former Secretary of State Henry Kissinger now heads Kissinger Associates, the
consulting firm which opens doors for U.S. companies seeking business in China
(and other Third World nations). In 1997, Disney hired Kissinger to smooth
ruffled feathers with China over the company’s production of Kundun, a film that
spoke favorably of the Dalai Lama, the spiritual leader of Chinese-occupied Tibet.
Chinese anger over the movie threatened Disney’s plans to open a theme park
outside of Beijing.
Following the massacre at Tiananmen, Kissinger argued that no government in the
world should be expected to tolerate protesters’ occupation of a public square for
a lengthy period of time.
Former U.S. ambassador to China Leonard Woodcock advises Bell Helicopter and
Chrysler on their China operations. In 1996, David Rothkopf left the Commerce
Department, where he promoted trade with China, to take up residence as
managing director of Kissinger Associates, where he performs the same function.
Lionel Olmer, a Commerce undersecretary for international trade under Ronald
Reagan and now counsel to the board of U.S.-China Business Council, advises
American firms that export to China while simultaneously lobbying against
restrictions on high-tech exports to Beijing.
Two especially active friends of China are Al Haig and Brent Scowcroft. The
former, a secretary of state under Ronald Reagan, has helped United Technologies
work the China market and also serves as “honorary senior advisor” to a Chinese
firm called Cosco, wich is seeking to take over closed Navy facilities in Long Beach,
Haig furiously lobbied Congress during Congressional debate on MFN in 1996,
though his apparent lack of mental equilibrium – which so frightened the public
during his years of public service that Haig was in large measure responsible for
producing the Nuclear Freeze movement – did not serve Beijing well.
“Haig aggressively berated anyone who dared oppose his views and scoffed at their
intelligence,” says an aide to Rep. Chris Cox of California.
“When my boss suggested that Taiwan be admitted to the WTO ahead of China, he
went absolutely ballistic.”
As a member of the National Security Council, Scowcroft in 1989 traveled to
Beijing shortly after the crackdown at Tiananmen Square for consultations with
Chinese leaders (who commemorated his arrival by pummeling a group of student
demonstrators). After leaving government, Scowcroft went to Kissinger
Associates and now heads his own consulting firm, The Scowcroft Group, which
develops “market entry strategies” for companies seeking overseas opportunities.
In October of 1996, Scowcroft traveled to Beijing, joining Chubb CorporationCEO
Dean O’Hare at a meeting with Premier Li Peng. According to an account in the
Chinese press, Li “expressed his appreciation for the prolonged efforts Scowcroft
has made in helping to develop Sino-U.S. relations, “while Scowcroft assured his
host that he was “willing to make further efforts” for that cause.
Scowcroft also sits on the board of at least two corporations with big interests in
China, Northrop Grumann and Qualcomm, and is a trustee of the business-funded
Asia Pacific Exchange Foundation, a right-wing beltway outfit that promotes closer
ties with Beijing.
None of this has stopped Scowcroft from offering himself up as a dispassionate
observer of the China scene. He testifies on the Hill about the importance of
close ties to Beijing, briefs members of Congress on the MFN issue at the
invitation of the Heritage Foundation and other conservative think tanks, and
speaks at public events where he reiterates those positions….
Miller & Chevalier – A Washington, DC-based nest of Lawyers and Lobbyists.
From their web-site, 8/1/00: … In 1920, Robert Miller and Stuart Chevalier
founded Miller & Chevalier as the nation’s first law firm specializing in tax
matters. Mr. Miller had served as Solicitor and Mr. Chevalier as Asst Solicitor of
the Internal Revenue Service shortly after the first federal income tax laws were
enacted. . . .
Like our firm’s founders, many of our tax lawyers have worked in federal
Our firm’s tax practice is diverse, responding to the increasing complexity of the
international tax system and the need for Washington representation to deal
effectively with important tax policy issues. We serve clients in numerous
industries: … aerospace, automobile, banking and finance, natural resources and
energy, chemicals, electronics, pharmaceutical, retail, and health care insurance….
Our firm represents over half of the Fortune 50 companies. We also work with
foreign-owned companies of similar size …
Taxation – Representative Engagements
Amoco Corp v. Commissioner (a.k.a. US Taxpayers) . . . The U.S. Court of Appeals
… held that Amoco was entitled to foreign tax credits for Egyptian income taxes
paid on its behalf by the Egyptian National Oil Co . . . The amount of the asserted
deficiency was over $450 million….
Atlantic Richfield Co v. Commissioner (a.k.a. US Taxpayers). . . This case involves
over 200 issues and a deficiency in excess of $700 million. Some of the issues
involve hedging, tax accounting, foreign source income, and capitalization
B.F. Goodrich v. United States (a.k.a. US Taxpayers) . . . This case involved
whether interest expenses incurred on corporate owned life insurance were
deductible. The taxpayer sought a refund of approximately $2.5 million. The case
The Boeing Co v. United States (a.k.a. US Taxpayers) . . . This case involves the
allocation and apportionment of research and development expenses for purposes
of computing combined taxable income for DISC/FSC purposes. The taxpayer is
seeking a refund of over $450 million. The District Court granted Boeing’s motion
for summary judgment; the govt’s appeal to the Ninth Circuit is pending….
Cheng v. Commissioner and Pen v. Commissioner . . . The issue in these companion
cases was whether commissions earned as compensation for the performance of
personal services in Taiwan were taxable as income effectively connected to a U.S.
trade or business. The total amount at issue exceeded $40 million in deficiencies,
penalties, and interest. The government conceded…. (Those must have been some
personal services! I wonder what kind?)
Exxon Corp v. Commissioner (a.k.a. US Taxpayers) . . . The Tax Court held that
the Commissioner’s proposed allocation of over $6.5 billion in income was
precluded under Code sections 61 and 482 due to a foreign legal restriction….
General Electric Co v. Commissioner (a.k.a. US Taxpayers) . . . This case involved
whether the taxpayer properly elected … to deduct currently approximately $118
million in research and development expenses.
~ ~ ~
In addition to their legal services, Miller & Chevalier declared lobbying income of
$1.4 million in 1998, with total lobbying expenditures of $320,000 (all to the
lobbying firm of Akin, Gump).
Among Miller & Chevalier’s lobbying clients: Assn of Financial Service Holding
Cos; Atlantic Richfield; Blue Cross/Blue Shield; Boeing Co; Boston Edison; Chevy
Chase Bank; Gallo Winery; Monsanto Co; Nuclear Fuel Services; and the
Arkansas-based Wal-Mart Stores.
Pacific Forum – A tax-exempt, private, “foreign policy research institute” (i.e.
“think tank”) based in Honolulu, Hawaii.
From the CSIS website:
Based in Honolulu, Hawaii, the Pacific Forum CSIS is a non-profit, private, foreign
policy research institute that operates as the Asia Pacific arm of the Center for
Strategic and International Studies of Washington, D.C.
Founded in 1975, the thrust of the Forum’s work is to help stimulate cooperative
policies in the Asia Pacific region through debate and analyses undertaken with the
region’s leaders in the academic, government, and corporate arenas. The Forum’s
programs encompass current and emerging political, security, economic/business,
and ocean policy issues. It collaborates with a network of more than 30 research
institutes around the Pacific Rim, drawing on Asian perspectives and disseminating
its projects’ findings and recommendations to opinion leaders, governments, and
publics throughout the region.
An international Board of Governors guides the Pacific Forum’s work; it is chaired
by Brent Scowcroft, former Assistant to Presidents Bush and Ford for National
Security Affairs. The Forum is funded by grants from foundations, corporations,
individuals, and governments, the latter providing but a small percentage of the
Forum’s $1.2 million annual budget. The Forum’s studies are objective and
nonpartisan and it does not engage in classified or proprietary work.
Board of Governors
Brent Scowcroft —— Lt. Gen. USAF (Ret.) President, The Forum for International
Policy. Former Assistant to the President for National Security Affairs
Ralph Cossa —— Former Special Assistant for National Security Affairs to
President Reagan and Senior Director, Asian Affairs, NSC Staff (Honolulu)
Thomas B. Hayward —— Admiral USN (Ret.) President, Hayward Associates, Inc.
Former Chief of Naval Operations and member of the Joint Chiefs of Staff
Pyong Hwoi Koo —— Chairman, Korea International Trade Association; Advisory
Board Member, LG Group; Chairman, Korea Committee for World Cup 2002 (Seoul)
L. R. Vasey —— Rear Admiral USN (Ret.) Founder and Senior Advisor for Policy,
Pacific Forum CSIS. Former Chief of Strategic Plans and Policies for U.S. Pacific
Command and Secretary to the Joint Chiefs of Staff (Honolulu)
R. Richard Ablon —— Chairman and CEO, Ogden Corporation (New York)
Mary Bitterman —— President and CEO, KQED Inc. Former Director, Voice of
America (Honolulu and San Francisco)
Frank Boas —— Attorney-at-Law; President, Frank Boas Foundation (Honolulu)
Gareth C.C. Chang —— Executive Chairman, Star TV (Hong Kong)
Nelson An-ping Chang —— President, Chia Hsin Cement Corporation (Taipei)
Ronald J. Hays —— Admiral USN (Ret.) International Business Consultant. Former
Commander in Chief, U.S. Pacific Command (Honolulu)
David A. Heenan —— Chairman of Trustees, The Estate of James Campbell
Hirotaru Higuchi —— Chairman, Asahi Breweries, Ltd. Vice Chairman, Keidanren.
Chairman, Economic Strategy Council; former Chairman, Prime Minister’s Advisory
Group on Defense Issues (Tokyo)
Karen Elliott House —— President, International Group, Dow Jones & Company Inc.
Hong-Choo Hyun —— Attorney-at-Law, Kim & Chang. Former Ambassador to the
Raymond F. Johnson —— Chairman Emeritus, Caltex Petroleum (Dallas)
Amos A. Jordan —— Counselor, Pacific Forum CSIS. Former President, Pacific
Forum CSIS and CSIS; former senior State Dept. and DOD official (Bountiful,
Jin Hyun Kim —— President, The University of Seoul. Former Editor, Korea
Economic Daily and former Minister of Science and Technology (Seoul)
L.W. “Bill” Lane, Jr. —— Consultant and Member, Board of Directors, The Time
Inc. Magazine Co. Former U.S. Ambassador to Australia (Menlo Park, CA)
Toshiaki Ogasawara —— Chairman and Publisher, The Japan Times, Ltd. (Tokyo)
Yoshio Okawara —— President, International Institute for Policy Studies. Former
Ambassador of Japan to the U.S. (Tokyo)
Big money corporate lobbyists don’t always win their battles, but when they are
defeated it’s rarely because Congress or the White House rises to defend the
public interest. More likely the scheme being advanced was so loopy that even
official Washington was too embarrassed to take up the cause.
That’s the case with a multi-billion dollar plot put together by a cabal of
beltway con men who hoped to dump tons of nuclear waste on a Pacific
Money and politics make for strange bedfellows but the nuke deal was put
together by what must surely rank as one of the most bizarre beltway coalitions of
all time: a volatile Englishman who sometimes poses as a rock star, a retired CIA
official, a self-described flower-child-turned investment banker, and a well-known
friend of Bill.
The corporate vehicle for the plan is U.S. Fuel and Security Inc (USF&S), a
Washington-based firm. The company’s CEO is Daniel Murphy, a lobbyist who
formerly served as deputy director of the CIA and chief of staff to George Bush
when the latter was vice president. Murphy carried out a variety of murky
activities while in government, once accompanying the notorious influence peddler
Tongsun Park to meet with then President Manuel Noreiga of Panama. . . .
The firm has recruited a number of heavy hitters to its cause. USF&S’s counsel to
retired Secretary of StateJames Baker. Former FBI DirectorWilliam
Webster sits on the advisory board ofInternational Fuel Containers, a corporate
subsidiary that plans to build huge steel containers to store the nuclear waste.
Mark Grobmyer, a Little Rock lawyer and golfing partner of President Clinton’s,
has vigorously lobbied the White House on the company’s behalf. . . .
Verner, Liipfert, Bernhard, McPherson, and Hand – The nation’s #1
From The Money Men:. . . The number one lobbying firm— Verner, Liipfert,
Bernhard, McPherson and Hand— acquired its marquee names over a relatively
short stretch in the mid-1990s. They included two former Senate majority
leaders, Bob Dole and George Mitchell, and a former treasury secretary, Lloyd
Bentsen. . . .
Even though they are prohibited by ethics laws from lobbying their former
colleagues for a year after they leave the Hill, ex-lawmakers were still in high
demand. The reason: their job was to manage entire persuasion campaigns, not just
to beg for favors themselves. . . .
Size didn’t matter when it came to lobbying-company clout. Verner Liipfert had
185 lobbyists and lawyers, but Barbour Griffith employed just thirteen.
* * *
PROFITING FROM 9-11?
From O’Dwyer’s PR Daily – (www.odwyerpr.com):
April 9, 2002
VLBM&H REPS AFGHANISTAN
Afghanistan is using Verner, Liipfert, Bernhard, McPherson and Hand in its
effort to build a political and economic infrastructure.
The firm of former Senate Majority Leaders Bob Dole and George Mitchell is
counseling the interim government on legislative, trade and investment matters on
a pro-bono basis.
Peter Pantaleo, President of the D.C. lobbying firm, wrote a letter to Afghan
charge d’affaires Haron Amin saying that his firm is “honored to be of service to
the Interim Authority, as well as to the Transitional Authority to be established
by the Emergency Loya Jirga” which is expected to set up a more permanent
government when it meets in June.
Verner, Liipfert, Bernhard, McPherson & Hand also renewed its $20,000 a-month contract with Montenegro, which is Serbia’s junior partner in Yugoslavia.
The firm is trying to promote better ties between the two republics so
Montenegro can break away from its larger rival.
The firm is to inform U.S. opinion-makers about Montenegro’s politics, military and
security concerns, human rights issues, anti-corruption efforts and economic
~ ~ ~
April 18, 2002
DOLE LOBBIES FOR MALAWI
Former Majority Leader Bob Dole is lobbyist for Malawi, one of Africa’s poorest
His firm, Verner, Liipfert, Bernhard, McPherson and Hand, is receiving
$300,000 in annual fees from the country, where the average life expectancy is
37 years for both men and women. Malawi’s ten million people face an HIV/AIDS
epidemic, deforestation and erosion among other problems.
VLBM&H’s contract calls for it to promote a “greater and deeper appreciation
and recognition in the USA of Malawi’s role as a friend and economic partner
of the USA.”
It will work “diligently to secure USA businesses and individuals to invest in and
visit Malawi and purchase Malawian goods and services at favorable prices.”
Malawi’s agricultural-based economy is driven by the growth of tobacco, sugar,
tea, corn and cassava.
~ ~ ~
March 26, 2002
ETHIOPIA SPENDS BIG AT VLBM&H
Ethiopia spent a whopping $5.6 million in lobbying fees/expenses at Verner,
Liipfert, Bernhard, McPherson & Hand during the firm’s recent six-month
India, Cyprus, Kazakhstan, Malawi, Mexico, China, Montenegroand Slovenia
combined for another $1 million.
For Ethiopia, VLBM&H provided advice on the peace treaty with Eritrea, and
explored commercial opportunities for Ethiopian businesses in the U.S.
On the downside, VLBM&H was terminated by Yemen’s Ministry of Foreign
President Bush plans to send a contingent of special forces to that Arab nation
to wipe out suspected members of Osama bin Laden’sAl-Qaeda network.
* * *
April 10, 1996
Former Hawaii Republican Party Chairman to
join Washington Law Firm
By Rick Daysog, Honolulu Star-Bulletin
Former Hawaii Republican Party Chairman Jared Jossem plans to join former Gov.
John Waihee as a local partner in a Washington, DC, law firm.
According to a source close to the deal, Jossem will join Verner, Liipfert Bernhard
Besides Jossem and Waihee, the firm’s big-name recruits include former Land Use
CommissionerRenton Nip and Norma Wong, former Office of State Planning
deputy director in the Waihee administration….
Jossem, a longtime partner in the firm ofTorkildson Katz Jossem Fonseca Jaffe
Moore & Hetherington, declined comment on the matter. He took over as GOP
chairman in 1991 and stepped down in 1994….
Besides Honolulu, Verner Liipfert has offices in Houston and Austin, Texas.
Locally, the firm has represented Bishop Estate in its lobbying efforts in
Washington. The firm lobbied under contract for the state Department of
Transportation on aviation, highway and mass transit funding issues.
Last year, Gov. Ben Cayetano canceled that nonbid contract, saying the
circumstances surrounding it created the appearance of impropriety.
Waihee and the law firm, which earned some $1 million in fees from the
contract, insisted the contract was proper….
* * *
The Buying of the President 2000:. . . Elizabeth Dole raised only $3.5 million
through the first half of 1999. Her husband’s prestigious Washington law firm,
Verner, Liipfert, Bernhard, McPherson, and Hand, is the top patron of her
current campaign . . .
* * *
Equity No. 2048 – In the Matter of the Estate of Bernice Pauahi Bishop,
Report of Master Regarding Retention of Non-Staff Counsel, filed 5/18/00: . . .
Prior to August 1998, Verner Liipert, a Washington D.C. based law firm which
employed former governor John Waihee was retained to do certain legal work.
From other pleadings filed in this matter we know that central to that retention
was lobbying by the firm on the issues of intermediate sanctions and/or trustee
It is also known from other pleadings that that firm was compensatedfor work
done on investigating the feasibility of changing the domicile of the trust from
Hawaii to a Souix River Indian Reservation….
Minutes of a Special Trustees’ meeting of Sept 9, 1998 authorized instructing
John Waihee to “transfer all files on the matter of Trustees lobbying efforts on
Intermediate Sanctions legislation” to Hawaii for review by other lawyers,
including “point person” William McCorriston. In addition, Verner Liipfert lawyer
Sue Temkin was to come to Hawaii “as soon as possible to explain and elaborate on
the lobbying efforts”. This was in response to Master Matsumoto’s request for
information on the subject and the right to review the files.
However, it is clear from a review of all of the 1998 invoices that even before
August 1998 Verner Liipfert was aware that the Attorney General had subpoenaed
its files and was involved in efforts to not produce its files. As time progressed
this firm did everything possible to delay production and, then, to attempt to limit
the scope of that production. This Master reviewed the following invoices: . . .
This entire amount should be surcharged to the Trustees. . . . Further, the bills do
not contain charges for John Waihee, even though he clearly spent time on the
file matter. If he was compensated in some other way or at a different time, that
sum should be included in the surcharge total. . . .
It is not overstatement to say that there was nothing of legal substance in the
work done in 1998 by this firm. Rather, it simply represents the formulation and
implementation of a strategy to delay and obstruct, discussed ad nauseum among a
large number of firm personnel, including the central involvement of N. Wong, S.
Temkin andJ. Waihee….
Simply stated, as one proceeds through the billing records one is left with the
inescapable conclusion that legal work being done was of no benefit to the trust.
Rather it was designed solely to address allegations of past misconduct or at least
errors of judgment made by the individual trustees with regard to the earlier
retention of this firm.
The goal of the work was to attempt to formulate a strategy to prevent or limit
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