ustxtxb_obs_1992_07_04_50_00019-00000_000.pdf

incidents, you can get a feel for the enormous influence the NSC can exercise over individual export licensing decisions. The NSC provides crucial input into the President’s foreign policy and national security decisions. These decisions often affect trade between the United States and foreign nations, which in turn affects a corporation’s ability to sell its goods overseas. As the Iraq example illustrates, the NSC can exercise considerable sway over export licensing decisions the directly determine whether or not a corporation’s export license is approved. This is one of the prime reason Mr. Scowcroft’s stock ownership presents the potential for a conflict of interest. Mr. Scowcroft’s past affiliation with Kissinger Associates also raises the question as to whether or not Mr. Scowcroft can truly provide independent advice to the President in matters of national security or foreign policy when those policies can run against the interest of corporations that he owns stock in or that are affiliated with Kissinger Associates. SCOWCROFT AND MEM:RANK MILITARY SALES Last week I placed in the RECORD a Legal Times article that illustrated how Mr. Scowcroft and Mr. Lawrence Eagleburger have been instrumental in formulating the recent administration proposal to use $1 billion in Export-Import Bank credits to sell defense articles overseas. This week I revealed that Mr. Scowcroft until very recently owned stock in many of our largest defense contractors. The fact that Mr. Scowcroft was even involved in a decision to promote military sales while he owned stock in several huge defense contractors strikes me as being a. conflict of interest. The President’s proposal to use the Export-Import Bank to finance military sales is an example of a policy decision that has the potential to directly benefit corporations Mr. Scowcroft owns stock in or that are affiliated with Kissinger Associates. CONCLUSION To summarize, I am deeply concurned that Mr. Scowcroft’s stockholdings, particularly in corporations that are clients of Kissinger Associates, present the potential for serious conflicts of interest. These stock-holdings also raise the question of Kissinger Associates influence over the decisions of Mr. Scowcroft and whether or not Mr. Scowcroft can remain independent from the interests of his former boss and longtime colleague. I will be writing President Bush to express my concern over these issues. [From the Financial Times, Apr. 26, 1991] CONGRESSIONAL INQUIRY: KISSINGER’S FIRM LINKED TO BNL WASHINGTON.Mr. Henry Kissinger, the former US secretary of state who heads the international consulting firm Kissinger Associates, had business links with Banca Nawhose branch in Atlanta, Georgia made $4bn in unauthorized loans to Iraq. according to the chairman of the US House banking committee. BNL’s activities in the US are at the center of a wideranging congressional inquiry into how its funds were used to buy militarily useful US technology and equipment until as late as June 1990, a few weeks before the invasion of Kuwait. Mr. Kissinger last night denied knowledge of the improper Iraqi loans. He confirmed, however, that he served until early this year as a paid member of BNL’s international advisory board. He resigned the BNL position on February 22, 1991 because of the BNL Atlanta scandal. Mr. Kissinger said last night: “I didn’t have any idea of what BNL was doing in Iraq. All I know was what I read in the papers. I resigned earlier this year because I don’t want to be connected, I don’t want to be asked about this sort of question”. Congressman Henry Gonzalez, the Texan Democrat who is investigating the BNL affair, also claimed that Kissinger Associates advised US companies exporting to Iraq, several of which were BNL-financed. Kissinger Associates is an international consultancy with blue-chip clients, advising on political and commercial risk. Among its early recruits were Mr. Brent Scowcroft, currently President George Bush’s national security adviser, as well as Mr. Lawrence Eagleburger, a veteran diplomat, who currently serves as deputy US secretary of state. Both resigned on taking office. In a lengthy statement on the floor of the House of Representatives, Mr. Henry Gonzalezchairman of the banking committee described how Mr. Alan Stoga, a Kissinger Associates executive, met Mr. Saddam Hussein in Baghdad in June 1989. At the meeting, Mr. Saddam apparently expressed interest in expanding commercial relations with the US. “Many Kissinger Associates clients received US export licenses for exports to Iraq. Several were also the beneficiaries of BNL loans to Iraq,” said Mr. Gonzalez. In response, Mr. Kissinger said his firm “derived no income from Iraq”. To his knowledge, Mr. Stoga did not advise Iraq on any financial matters, but he recalled that Mr. Stoga told him that he was identified at the Saddam meeting “as an expert on debt and could advise.” Mr. Kissinger, who has rarely spoken about his clients or his business, said his firm would not have interceded with the US government to secure export licenses for clients, but that “it is possible that somebody may have advised a client on how to get a license.” In his congressional statement Mr. Gonzalez said Mr. Eagleburger, who worked for Kissinger Associates until two years ago, served on the board of Ljubljanksa Bank Mr. Gonzalez said he wished to make clear that he was not accusing anyone of any illegalities. Stock Holdings of National Security Director Brent Scowcroft Value of Stocks stock ‘ Advanced Display Technology Allegran, Inc Allied Signal, Inc.’ ARMCO, Inc AT&T ” Bank America Corp.’ CSX Corp. A DBA Systems, Inc.’ E.I. Dupont’ First Security Corp . H 2765 Stock Holdings of National Security Director Brent ScowcroftContinued Value of Stocks stock ” General Motors Corp.’ General Electric Co.’ Great Atl. & Pac. Tea Co. B Great American Communications Halliburton Company Hanson PLC Sponsored ADR Hewlett Packard Co.’ IBM ” Intergraph Corp.’ E International Paper Company ITT Corp.’ s Kimberly Clark Lehman Corp. Lockheed Corp. A McKessen, Inc MCN Corp Merck & Co.’ Minnesota MNG MFG ” Mobil Oil Company Monsanto Company PacificCorp Phillips Petroleum Co. Pfizer, Inc.’ Primark Corp. Questar Corp. Reynolds Metals ‘ Storage Technology CP Shell TRNS & TR * SmithKline Beackman Corp 2 A Weyerhaeuser Co.’ Westinghouse Electric Wicor, Inc Xerox Corp.’ D Washington BanCorp. Notes: On October 4, 1990, the Office of Government Eithics required divestiture of these stocks. a Held by Spouse. 3 Value of Holding: A = under $1,001. B = $1.001 5,000, C= $5,001-15,000. D =$15,001-50,000, E=50,001-100,000, F=$100,001-250,000, G = over $250.000. Source: Brent Scowcroft Financial Disclose 5 0 1820 TRIBUTE TO LT. THOMAS CLIFFORD BLAND, JR. The SPEAKER pro tempore. Under a previous order of the House, the gentlewoman from Maryland [Mrs. BYRON] is recognized for 10 minutes. Mrs. BYRON. Mr. Speaker, I would like to commend the gentleman from Florida [Mr. Hurro] for the special order that he took this evening in addressing those 14 young men in the AC-130 which were a part of our Operation Desert Storm and Desert Shield. The gentleman from Florida [Mr. Hurro] talked about the quality of the young people that we have. I would like to join him in his special order. One of those young individuals was a constituent of mine from near Washington, Darnestown, MD, a young man Just 26 years of age; 1st. Lt. Thomas Clifford Bland, Jr., was the copilot of that aircraft. It is interesting to note that the friends of his from his high school days as a 1982 graduate of Seneca High School, spearheaded by Pat McGrath, one of his classmates, have taken it upon themselves to perpetuate his memory in a scholarship. It is one that will be awarded shortly on May 19. May 2, 1991 CONGRESSIONAL RECORD HOUSE THE TEXAS OBSERVER 19