The Nation. - Department of Government at Cornell University
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The Nation. - Department of Government at Cornell University

The Nation. - Department of Government at Cornell University The Nation. - Department of Government at Cornell University

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= FLYING FOR D.N.C. DOLLARSRon Brom’sV.I.P. JunketsKEN SILVERSTEINT interest as with fealty790 The Nation. June 5,1995he cries of outrage coming from the White Houseover Republican threats to eliminate the CommerceDepartment have at least as much to do with self-to the corporate cause. Throughthe department’s efforts to promote exports, the Clintonitesargue, American busmesses landed foreign deals worth$47 billion last year. But a little cross-referencing of the companlesthus helped and of campaign contribution records andinternal Democratic Party fundraising memorandumshowsthat for both corporations and the Administration, to give istruly to receive.Early last year, for example, Saudi Arabia was looking toexpand its commercial air fleet and examined proposals fromU.S. and European aircraft makers. After being furiously lobbiedby President Clinton and Secretary Ron Brown, the Saudisplaced a $3.6 billion order with Boeing. Within six monthsof closing the deal, the company had laden Democratic Na-tional Committee (D.N.C.) coffers with $65,000, four timesmore than it had donated during the previous three years.At about the same time, Administration pressure won Raytheona $1.4 billion deal with Brazil for building a satelllte surveillancesystem in the Amazon. In the 1992-94 election cycle,Raytheon donated $175,110 to Democratic candidates.Export promotion-precisely what the Republicans havesingled out for cutting-is at the heart of Brown’s strategyat Commerce, and indeed of Clinton’s strategy in foreign pol-ICY. When It comes to drumming up commerce for U.S. corporations,this Administration has outstripped its two wildlypro-business Republican predecessors. In Brown’s “war room,”bureaucrats monitor bidding on dozens of global deals, gatheringintelllgence (with help from the C.I.A.) and coordinatingfinancing from government sources to give U.S. firms an insidetrack. More directly, Brown leads select groups of executiveson commercial trips abroad. Last year corporationsfought to accompany the Commerce Secretary to Brazil, Argentina,Chile, China, Hong Kong, South Africa, Russia,India and the Middle East. Some 300 C.E.0.s applied for seatson the trip to Russia alone; only twenty-nine were chosen.Details of those trips have been obscure because Commercehas been stingy about providing information. That will soonchange, since in mid-May the courts forced Commerce to turnover to Judicial Watch 30,000 pages of documents concerningwhich companies were picked, which were left behind andwhat the basis for decision was. But from what I have beenable to plece together from published reports and from vari-ous internal documents (including some now ordered for release),it 1s already clear that the relationship of donationsKen Sdversteern is co-ederror. with Alexander Cockburn, of thebmonthly Washington-based newsletter “CounterPunch.”to access is like that of spring rain to garden blooms.Melissa Moss, head of the Commerce Department’s Officeof Business Liaison, decides who accompanies Brown. Shehas said firms “are chosen on merit and real business consideration.”But, like her boss, she is also intimately familiarwith party money matters. Prior to joining the Administration,Moss was a top fundraiser for the D.N.C. under Brown,and before that, for the Democratic Leadership Council,which Clinton helped found and once chaired.The group she assembled for Brown’s September 1994 tripto Beijing is revealing. Embarking three months after Clintonextended most-favored-nation trade status to China,Brown’s entourage included:0 Lodwrick Cook of Atlantic Richfield, which gave $201,500to the Democrats between 1992 and 1994. Cook is also closeto Clinton, who last June presented the Arco chief with abirthday cake during a White House lunch for executives.you don’t have to be a Democraticcontributor tofly with RonBrown-but it sure helps.0 Edwin Lupberger of Entergy, who closed an $800 milliondeal to build a power plant in China. Lupberger is a personalfriend of Clinton, and in the last election cycle Entergy donated$60,000 to Democratic candidates.0 Bernard Schwartz of the bra1 Corporation, who negotiateddeals that will net his telecommunications company$1 billion over the next decade. Three months before the tripSchwartz donated $lOO,OOO to the D.N.C.0 Raymond Smith of Bell Atlantic, which has glven nearly$200,000 to the Democrats since 1991. According to Democraticfundraising memos I obtained, Smith 1s also a party“trustee,” meaning he has personally helped raise $lOO,OOOor more.0 Leslie McGraw of Fluor, which came through with$108,450 for Democratic candidates in the last election.McGraw, like several of the executives who have been pickedto accompany Brown, is also a donor and board member ofthe Democratic Leadership Council.All told, at least twelve of the twenty-five firms whose officialsmade the trip to China are major donors or fundraisersfor the President’s party. Those companies gave almost $2 millionto Democratic candidates during the last election cycle.“I only believe in coincldences occasionally,” says ChuckLewis, head of the Center for Public Integrity. “Here you seeconsistent patterns.’’It’s the same with Brown’s other trips. Traveling with theCommerce Secretary to South Africa were Donald Anderson,an adviser to the president of Time Warner, which donated$508,333 to the Democrats between 1992 and 1994, and RonaldBurkle, C.E.O. of the Yucaipa Group and a “managingtrustee’’ of the D.N.C. The title designates him as havinghelped the party raise $200,000 or more.Even some of the smaller businesses that have had access

June 5, 1995 The Nation. 791to Brown’s expeditions have paid their dues in advance. RobinBrooks, director of the Brooks Sausage Company out ofKenosha, Wisconsin, got to go to South Africa. 1992 In sheorganized a fundraiser for Clinton, and in the last electioncycle, her firm gave $23,000 to the Democrats.The currency of influence is not limited to cash. For instance,the chances that a U.S. firm seeking business in Russiawill receive official support seem to grow in direct proportionto that company’s links to Democratic power broker RobertStrauss. A senior partner at the law firm Akin, Gump, Strauss,Hauer & Feld-where his colleagues include Vernon Jordan,President Clinton’s friend and golfing partner-Strauss servedas U.S. Ambassador to Russia from 1991 to 1992. lbo yearsago he set up the US.-Russia Business Council, which has receivedgovernment funds to promote commerce between thetwo countries.At least eight of the twenty-nine companies that were invitedto go Russia to are linked to Strauss and his firm. AT&T,Westinghouse, Dresser Industries (a Dallas-based oil equipmentcompany) and Enron (a Houston-based natural gas conglomerate)are all Akin, Gump clients. Litton Industries andGeneral Electric have representatives on the board of the US.-Russia Business Council. Rockwell International and Bristol-Myers Squibb are former clients of Strauss.Several of those companies are also major contributorsto the Democrats. AT&T alone gave the party’s candidates$765,763 over the past two years. Among high-donor companiesrepresented on the Russia trip were Occidental Petroleum($152,549 over the same period) and US West ($147,667).US West signed a telecommunications agreement while inRussia that will be backed by a $125 million loan guaranteefrom the U.S. government’s Overseas Private Investment Corporation.OPIC is headed by Ruth Harkin, wife of SenatorTom Harkin and, prior to joining the Administration, a topcorporate lawyer at Akin, Gump.Enron, which closed a deal, backed by the U.S. Export-Import Bank, to develop European markets for Russian gas,has been one of the biggest beneficiaries of the Administration’sexport policy. During the past two years the Ex-Im Bankhas supported Enron’s agreements with Turkey, India, thePhilippines and China-deals worth nearly $4 billion. KennethBrody, head of the Ex-Im Bank, is a close friend of TreasurySecretary Robert Rubin, having worked with Rubin atGoldman, Sachs. Enron is listed on Rubin’s 1993 financialdisclosure statement as one of forty-four companies withwhich Rubin had “agnificant contact” during his years at theinvestment firm. (Brody, by the way, is said to be a leadingcandidate to take over at Commerce If Brown, under mvestigationfor everything from slumlording to collecting $400,000for his “share” in a company in which he had invested nothing,is forced to resign.)Like Boeing, many companies have larded the Democratsafter being helped by the Administration on the export front.Westinghouse executives have traveled with Brown to SouthAmerica, Russia and China, where the company racked up$430 million in sales. It also received Ex-Im backing for a$300 million plan to complete and upgrade the Temelin nudearpower plant in the Czech Republic. (When that deal wasoriginally hatched in 1993, Warren Hollinshead, Westing-How ”Natives” Think0About Captain Cook, For ExampleMarshall Sahlins“How*Natives’ Think IS afierce, passionate, wtty andlearned polemic. Sahllns‘sdebate Lnth Obeyesekere‘sThe Apotheosrs of CaptainCook is an Indispensablecontemporary guide to howanthropologlsts thmk. Moreprecaely, Sahlins forcefullyartlculates his pos~t~on ~n amalor and hlghly slgnihcantargument about hatoryand cultural dlfference, anargument wlth powerfulimplications for the entlre held of cultural studies."”Stephen Greenblatt, Unlverslty of Califomla, BerkeleyCloth $94.95 347 pages illus-Available at bookstores,The University of Chicago Press5801 South Elhs Avenue, Chicago, IL 60637

June 5, 1995 <strong>The</strong> <strong>N<strong>at</strong>ion</strong>. 791to Brown’s expeditions have paid their dues in advance. RobinBrooks, director <strong>of</strong> the Brooks Sausage Company out <strong>of</strong>Kenosha, Wisconsin, got to go to South Africa. 1992 In sheorganized a fundraiser for Clinton, and in the last electioncycle, her firm gave $23,000 to the Democr<strong>at</strong>s.<strong>The</strong> currency <strong>of</strong> influence is not limited to cash. For instance,the chances th<strong>at</strong> a U.S. firm seeking business in Russiawill receive <strong>of</strong>ficial support seem to grow in direct proportionto th<strong>at</strong> company’s links to Democr<strong>at</strong>ic power broker RobertStrauss. A senior partner <strong>at</strong> the law firm Akin, Gump, Strauss,Hauer & Feld-where his colleagues include Vernon Jordan,President Clinton’s friend and golfing partner-Strauss servedas U.S. Ambassador to Russia from 1991 to 1992. lbo yearsago he set up the US.-Russia Business Council, which has receivedgovernment funds to promote commerce between thetwo countries.At least eight <strong>of</strong> the twenty-nine companies th<strong>at</strong> were invitedto go Russia to are linked to Strauss and his firm. AT&T,Westinghouse, Dresser Industries (a Dallas-based oil equipmentcompany) and Enron (a Houston-based n<strong>at</strong>ural gas conglomer<strong>at</strong>e)are all Akin, Gump clients. Litton Industries andGeneral Electric have represent<strong>at</strong>ives on the board <strong>of</strong> the US.-Russia Business Council. Rockwell Intern<strong>at</strong>ional and Bristol-Myers Squibb are former clients <strong>of</strong> Strauss.Several <strong>of</strong> those companies are also major contributorsto the Democr<strong>at</strong>s. AT&T alone gave the party’s candid<strong>at</strong>es$765,763 over the past two years. Among high-donor companiesrepresented on the Russia trip were Occidental Petroleum($152,549 over the same period) and US West ($147,667).US West signed a telecommunic<strong>at</strong>ions agreement while inRussia th<strong>at</strong> will be backed by a $125 million loan guaranteefrom the U.S. government’s Overseas Priv<strong>at</strong>e Investment Corpor<strong>at</strong>ion.OPIC is headed by Ruth Harkin, wife <strong>of</strong> Sen<strong>at</strong>orTom Harkin and, prior to joining the Administr<strong>at</strong>ion, a topcorpor<strong>at</strong>e lawyer <strong>at</strong> Akin, Gump.Enron, which closed a deal, backed by the U.S. Export-Import Bank, to develop European markets for Russian gas,has been one <strong>of</strong> the biggest beneficiaries <strong>of</strong> the Administr<strong>at</strong>ion’sexport policy. During the past two years the Ex-Im Bankhas supported Enron’s agreements with Turkey, India, thePhilippines and China-deals worth nearly $4 billion. KennethBrody, head <strong>of</strong> the Ex-Im Bank, is a close friend <strong>of</strong> TreasurySecretary Robert Rubin, having worked with Rubin <strong>at</strong>Goldman, Sachs. Enron is listed on Rubin’s 1993 financialdisclosure st<strong>at</strong>ement as one <strong>of</strong> forty-four companies withwhich Rubin had “agnificant contact” during his years <strong>at</strong> theinvestment firm. (Brody, by the way, is said to be a leadingcandid<strong>at</strong>e to take over <strong>at</strong> Commerce If Brown, under mvestig<strong>at</strong>ionfor everything from slumlording to collecting $400,000for his “share” in a company in which he had invested nothing,is forced to resign.)Like Boeing, many companies have larded the Democr<strong>at</strong>safter being helped by the Administr<strong>at</strong>ion on the export front.Westinghouse executives have traveled with Brown to SouthAmerica, Russia and China, where the company racked up$430 million in sales. It also received Ex-Im backing for a$300 million plan to complete and upgrade the Temelin nudearpower plant in the Czech Republic. (When th<strong>at</strong> deal wasoriginally h<strong>at</strong>ched in 1993, Warren Hollinshead, Westing-How ”N<strong>at</strong>ives” Think0About Captain Cook, For ExampleMarshall Sahlins“How*N<strong>at</strong>ives’ Think IS afierce, passion<strong>at</strong>e, wtty andlearned polemic. Sahllns‘sdeb<strong>at</strong>e Lnth Obeyesekere‘s<strong>The</strong> Apotheosrs <strong>of</strong> CaptainCook is an Indispensablecontemporary guide to howanthropologlsts thmk. Moreprecaely, Sahlins forcefullyartlcul<strong>at</strong>es his pos~t~on ~n amalor and hlghly slgnihcantargument about h<strong>at</strong>oryand cultural dlfference, anargument wlth powerfulimplic<strong>at</strong>ions for the entlre held <strong>of</strong> cultural studies."”Stephen Greenbl<strong>at</strong>t, Unlverslty <strong>of</strong> Califomla, BerkeleyCloth $94.95 347 pages illus-Available <strong>at</strong> bookstores,<strong>The</strong> <strong>University</strong> <strong>of</strong> Chicago Press5801 South Elhs Avenue, Chicago, IL 60637

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