The Carlyle
Group
Alfred Mendes looks at
a single US investment corporation and asks some pertinent questions
about democracy, terrorism and power.
It is quite extraordinary,
and not a little frightening, how little attention is paid to
the unexpressed aims of Corporate America in its on-going act
of achieving global economic and political domination. Whereas
its expressed aims, such as promoting a new and
humanitarian world freed of terrorism,
are constantly propounded in both print and speech, the causal
problems underlying these recent crises (of which terrorism
is the most prominent) are not being examined rationally. That
Americas expressed
aims are false can be readily proven: (1) financed to the tune
of $2 billion and armed by the USA, its NATO ally, Turkey, has
been ethnically cleansing its Kurdish minority for
the past decade & a half - within view, as it were, of a
US Intelligence Base just outside Diyarbakir - while it, the
USA, has been bringing its humanitarian values to
the Balkans; (2) those two paradigms of terrorism
- Osama bin Laden and Saddam Hussein - could not have achieved
power without the active assistance of the USA.
To understand more clearly
the role being played by this superpower, it is first necessary
to accept the fact that the US Administration is - and has been
for decades - under the control of its capitalist corporations,
a group wielding enormous power due to its vast industrial capacity
and world-wide capital investments - to say nothing of
its cabalistic, cohesive nature. To confirm this, one has only
to scan the lists of the top individuals in both
the US Administration and the corporate boards over the
past few decades to see the close linkage between the two. As
for the post of President: this is an executive post carrying
such autocratic power that the Corporate Establishment ensures
that their man
is elected. This election is, in effect, an auction, as exemplified
by the fact that oil companies contributed $1.8 million towards
George W. Bushs campaign in the year 2000 - thirteen times
as much as they gave his opponent! Again, the Electric utilities
donated $447,000 to Bush, but only $65,000 to Al Gore, etc.
And, inasmuch as the President-to-be appoints administrators
who are, in effect, the policy-makers, the Corporate Establishment
- as the highest bidder in the auction - ensures
that it is well-placed in the seat-of-power. Is this the form
of democracy the Athenians had in mind!?
The following recent
news report epitomises this close bond between government and
business concisely: on the 27th September 01, the Wall
Street Journal revealed that the bin Laden family firm in Saudi
Arabia was a major investor (1 of 450 such investors) in the
prestigious American investment firm, the Carlyle Group, and
that George Bush Snr., on behalf of this group, had brokered
the deal. The report added that the FBI had subpoenaed the bin
Laden familys bank records, there being doubt that the
family had broken all ties with Osama. This calls for a closer
examination of the Carlyle Group in order to unearth more germane
facts., and an efficient way to accomplish this is to begin
by listing the senior officers of the company - with very brief
(incomplete) C.Vs added. (It should be noted here that
the European Chairman is John Major, the ex-British PM,
but he warrants no further mention in this article as he is
of little import to the subject in hand).
Chairman: Frank C. Carlucci His ties
with the US Administration go back to the 70s, (Dept.
of Health, Education & Welfare, etc.) and - more importantly
- includes stints as Deputy Director of CIA (78 - 81)
under Carter; Deputy
Secretary of Defense (81 - 82) and National Security
Adviser (87 - 89) both under Reagan.
Senior Counselor:
James Baker III. Chief of Staff (81
-85), and Secretary of Treasury (85 - 89)
both under Reagan; and Secretary of State (89 - 93)
under Bush Snr.
Broker: George Bush Snr. Director of CIA (76 - 77) under Ford;
Vice-President (81 - 89) under Reagan; and President
(89 - 93).
The
Corporate Establishment can readily be portrayed as a complex
web of interlinked companies and executives, and the fact that
Carlyle holds ownership stakes in 164 companies and ranks as
the eleventh largest defence contractor in the US further emphasises
its pre-eminence within this web, and the somewhat disproportionate
links to the intelligence services listed above is reflected
in its ownership - via BDM International - of the CIA-front
company, Vinnell Corp., which has been operating under contract
in Saudi Arabia since 1975. It is of pertinence to note here
(if only to stress the close relationship between the Administration
and the corporate establishment) that BDMs President &
CEO is one Philip Odeen who served as Chairman of Clintons
National Defense Panel. Another filament of this web: in 1990
George W. Bush - now President - was on the board of directors
of one of Carlyle Groups subsidiaries, Caterair, an airline
catering company.
It needs little
delving into the background of the senior Carlyle officers listed
above to trigger memories of events that have a direct bearing
on todays crisis of terrorism. (1) One week
after his inauguration as President, and with Vice-President
Bush Snr. by his side, Reagan called a cabinet meeting to discuss
terrorism - the overthrow of Irans Shah by
the Ayatollah Khomeini still fresh in memory. As reported by
Bob Woodward in his book The Veil, Anthony Quaint, the State departments
expert on terrorism, stated at that discussion that its
possible for a terrorist group to strike directly at the United
States in the United States. The United States
is vulnerable. Now, 20 years later, the US government
can hardly claim they were not forewarned! (2) As reported by
Leslie Cockburn in her book Out Of Control covering the Nicaraguan
Iran/Contra crisis: while the notorious Lt. Col. Oliver North
was serving on the Interdepartmental Group on Terrorism
and on the Terrorist Incident Working Group, both of which reported
to the Crisis Pre-Planning Group and the Special Situation Group,
both of which in turn shared the same chairman: Vice-President
George Bush, the US government was, at the same time,
engaged in trading guns for drugs, as revealed by one of the
pilots so engaged, Mickey Tolliver, in a CBS interview
in 1987 (Cockburn had worked for CBS since 1978). On one trip
he had carried 28,000 lbs. of guns and ammunition to the Contra
supply base in Honduras, and returned with a 25,360 lb. load
of marijuana - landing at Homestead Air Force Base in Florida!
(3) In the aftermath of the disastrous bombing of both
the US Embassy and the US Marine Base in Beirut in 83,
there ensued a spate of hostage-taking. America accused Iran
of aiding the suspect terrorist groups guilty of
these activities. Result: America arranged for Israel to sell
508 TOW missiles to Iran in exchange for the release of the
hostages! (4) In the aftermath of the Lockerbie bombing in 86,
America for the first 2 or 3 years accused Iran (once again)
and Syria of responsibility for the act - only to drop all accusations
against them when it became necessary to co-opt Syria as an
ally in the inevitable war against Iraq, the new Satan.
There were a number
of other subsequent events of a similar terrorist
nature, and in retrospect, it is clear that America was using
the term terrorism in order to conceal their real
aim, which was to achieve economic and political domination
on a global scale - as expressed in the opening sentence of this article.
This subject of terrorism is best treated by drawing attention
to the crux of the problem - the inequity and bias inherent
within the capitalist system itself, whereby a comparative few
garner profit from the labour of many, inevitably fostering
that most dangerous of emotions: frustration. Is not frustration the mother of terrorism? And would
not the most rational means of solving this problem be to examine
the source of this frustration? Which is precisely
why America cannot afford to take this rational road: to do
so would mean questioning the system itself - Mammon forbid!
In view of the foregoing, is it not thus reasonable to harbour
grave doubts as to the validity of Americas declared aim
in this conflict with Afghanistan?
A further delving
into the background of the listed Carlyle officers is called
for here - and whom better to start with than its chairman,
Carlucci. As noted in his C.V. above, he had strong ties with
the intelligence agencies, as confirmed by Philip Agee in his
book, On The Run: Carlucci had been on the
team in Kinshasa when Patrick Lumumba was assassinated and the
Congolese revolution stopped. Then he worked four years in Brasil
following the military coup in 1964. Agee was in Portugal
not long after the April 75 coup by the communist-led
Armed Forces Movement had overthrown the dictatorship of Salazar
- as a result of which, President Ford had sent Carlucci as
ambassador to Portugal. As Agee writes: If the new ambassador,
Frank Carlucci, was any indication, the Ford administration
was determined, both alone and in concert with European allies
to stop the revolution...He would be in charge of
coordinating all efforts to save Portugal.
But more pertinent to his role in later years were the
many directorships he held, among which were General Dynamics,
Westinghouse Electrics, the Rand Corp. - and Ashland Oil (among
others). He had also been a college classmate of Donald Rumsfeld,
the present Secretary of Defense. Perhaps his most interesting
relationship was with the very right-wing Dr. Constantine Menges
of the Hudson Institute who had worked for Carlucci in the Department
for Health, Education and Welfare. As Bob Woodward revealed
in The Veil: In a 1980 article (The
New York Times), Menges stated that events in Iran, Afghanistan
and Nicaragua marked a turning point in the invisible
war between radical and moderate forces for
control of oil (this authors italics), the Middle
East and Central America. This was a significant slip-of-the-tongue
on the part of Menges, and was to prove correct. After the collapse
of the USSR, the American oil companies wasted no time in moving
in on the Caucasian oil & gas fields (see authors
article The Thin End Of The Wedge). In 81, William
Casey, Director of CIA, made Menges Intelligence Officer for
Latin America, a position he held until, In 1983, and on the advice of Carlucci, he was transferred to the
National Security Council, under Reagan.
It is of significance
to note that Carlucci was not the only one of the three Carlyle
officers covered by this article to be
connected to an oil company (he was chairman of Ashland
Oil); Bush Snr., had founded the oil drilling firm, Zapata;
and last - but not least - Baker is on the board of the Azerbaijan
International Oil Co. (AIOC) as legal representative, which
should please him as his good friend from the days of the USSR,
Eduard Shervardnadze, is President of neighbouring Georgia.
It is necessary to note here that, contrary to the generally
accepted belief that the US troops recently deployed in Uzbekistan
was the first such deployment on ex-Soviet soil, Reuters reported,
in June of this year, 2001, that 4000 troops from eleven countries
(including the USA) held NATO exercises near the Georgian port
of Poti on the Black Sea, and were welcomed whole-heartedly
by Shervardnadze, who stated that this was confirmation
of the readiness of our country to move towards deeper Euro-Atlantic
integration, This, from the man who was Foreign Minister
of the USSR when it collapsed! (Any causal linkage here?).
The filaments of
the oil web are too numerous to be covered in detail in an article
of this length, but, with the AIOC fresh in mind, a few more
examples of the role played by oil companies in the sensitive
area of the Caucasus region would not be amiss. As its name
implies, AIOC is an Azerbaijan consortium - in which US oil
companies hold a 40% stake. Two of these companies are Amoco
and Pennzoil. (1) Zbigniew Brzezinski, who had been National
Security Advisor to Jimmy Carter, was on Amocos payroll,
and (2) General Brent Scowcroft, who had been National Security
Advisor to George Bush Snr., was on Pennzoils payroll.
But, had not the US Congress in 92 passed Section 907
of the Freedom Support Act to restrict US assistance to Azerbaijan
until such time as it, Azerbaijan, stopped its offensive and
adopted a more humanitarian attitude to its neighbours,
Armenia and Ngorno Karabahk? The answer is found in the short
paragraph of the Act which reads: Section 907 does not
prevent Trade and Development Agency guarantees and insurance
for US firms, or Foreign Commercial Service operations, or the
activities of the Overseas Private Investment Corporation (OPIC)
and the Export-Import Bank. Thus,
US businesses are not placed at a competitive disadvantage.
(authors italics).
1997 saw the formation
of the Central Asia Gas Pipeline consortium (Centgas) with the
intention of running a 790-mile-long pipeline from the gas fields
of Turkmenistan through neighbouring Afghanistan to Multan,
in Pakistan (at a cost of $1.9 billion) - with a possible future
extension to New Delhi, in India (cost: $600 million). This
was a project under the control of the California oil company,
UNOCAL, who held the controlling stake of 46.5% in the consortium.
At the instigation of UNOCAL, a Taliban ministerial delegation
held talks in Washington with the US Undersecretary of State,
Karl Underforth, in December 1997 to discuss this pipeline project
- but, due to the ever-worsening instability in Afghanistan, UNOCAL aborted
the project in December 1998. However, as reported in the Pakistani
publication Business Recorder in 2000, the remaining
members of Centgas - Delta Oil Group of Saudi Arabia, the Turkmenistan
government, Indonesian Petroleum, ITOCHU of Japan, Hyundai of
South Korea and the Crescent Group of Pakistan - had not given
up hope. The crucial point to note here is that, without the
participation of an American oil partner such a project is impossible,
and given the very influential clout carried by the oil industry
in the US Administration (as noted above), it is reasonable
to assume that these considerations would have been in the forefront
of the minds of the US government officials, and would thus
have played a crucial role in determining Americas response
to Afghanistan in the aftermath of the WTC bombing. This attack,
in affect, had supplied the US with a convenient reason for
taking control of Afghanistan under the pretext of destroying
terrorism when, in fact, already well-ensconced
in the nearby ex-Soviet republics of the Caucasus region, this
was merely another step in Corporate Americas inexorable
advance eastwards in its search for more lucrative markets -
for its oil industry in particular.
This poses the obvious,
crucial question: which of the two protagonists in this struggle
is the real terrorist?
Alfred
Mendes was born in Trinidad in 1920 and is of Portuguese extraction.
His varied career included wartime service both at sea and in
the British Army and work as a coal miner and oil driller in
several parts of the world. He has been retired for twenty years.