-Caveat Lector-
an excerpt from:
The Immaculate Deception
Russel S. Bowen(C) 1991
American West Publishers
PO Box 2208
Carson City, Nevada 89072
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Meanwhile, a company that employs President Bush' s brother Prescott as a
consultant, stands to benefit if the President clears the way for the
shipment of two satellites to China by the Hughes Aircraft Co. U.S. officials
and foreign diplomats have said President Bush was expected to approve
exporting the satellites. The action would represent one of the measures the
Administration is taking to improve strained relations with China.
Asset Management International Financing Settlement, Ltd, a New York
firm for which Prescott Bush is a consultant has a contract to provide
communications connecting more than 2,000 professional and university offces
in China.
Company executives said that the Hughes satellites would be
"advantageous" for its project, which is a 50-50 joint venture with the
Chinese government. In addition, Asset Managements executive vice president
said in an interview that the company could obtain more communications
business in China if the satellites are launchedPrescott Bush, an
international businessman with extensive business contacts in Asia, has
denied using his younger brother's position to help him, and there is no
substantial indication that the President's foreign policy has been affected
by his brother's business dealings.
White House Press Secretary Marlin Fitzwater said both the President and
his brother were not aware of any direct relationship between Asset
Management's business activities and Hughes Aircraft, which is supplying the
satellites.
"I talked to the President, and he said he is unaware of any relationship
or any activity involving Hughes Aircraft," Fitzwater said. "Then I called
Prescott, and he also was unaware of any association involving Hughes
Aircraft."
A U S. diplomat, describing Prescott Bush's dealings in China, said in an
interview, "He was smart enough not to mention his brother's name, and the
Chinese were smart enough to make the connection."
President Bush, who headed the U.S. mission in China in the mid- 1970s,
sent National Security Adviser Brent Scowcroft and Deputy Secretary of State
Lawrence S. Eagleburger to Beijing, to prevent China from drifting into
isolation as a result of international outrage over the June 3-4 massacre of
pro-democracy demonstrators.
The overture brought criticism on Capitol Hill, where Democrats accused
the President of moving too swiftly without concessions from the Chinese.
Last June, in response to congressional pressure, Bush imposed sanctions
against China, including a ban on the sale or export of equipment with
possible military uses. Last fall, Congress enacted a provision that
specifically banned the export of satellites to China unless the President
granted a waiver in the national interest.
Scowcroft's trip to Beijing was the latest and most dramatic step by the
Adrninistration to ease the impact of the restrictions. If Bush approves
exporting the Hughes satellites to China, it could heighten the controversy
in Congress.Los Angeles-based Hughes Aircraft has been seeking final
approval from the White House to sell two of its communications
satellites,one to an Australian state-owned company called Ausat and the
other to a Hong Kong consortium called Asiasat. Both satellites would be
launched on Chinese rockets in China's Sichuan province. The satellites are
designed to provide vital communication links across Asia and Australia and
would be a boon to the joint venture between the Chinese government and Asset
Management, an international financial-services company.
Company records list Prescott Bush as a member of its senior advisory
board, which includes retired Admiral Elmo R. Zumwalt, former chief of the
Navy. An executive vice president of Prescott Bush Co. also is a director
of Asset Management, according to the records.
In addition to Bush's role as an adviser, Asset Management Executive Vice
President Stanley B. Scheinman said the President's brother is a paid
consultant who helps the firm in Asia, including arranging a recent $5
million investment in the company by a Japanese firm. "He was instrumental in
assisting us and introducing us to the Japanese investors, " said Scheinman.
Last September, Prescott Bush swung through Asia and Beijing meeting with
Chinese officials and potential investment partners. At that time, he told
the WallStreetJournal that he was representing Asset Management on several
projects, including the satellite-linked network inside China. He did not
mention then that Asset Management stood to gain from the pending export of
satellites to China. He did say, however, that he had not benefited fram his
brother's position. - ''There' s no conflict of interest," he said. This is
something that has been going on for years. But he conceded, It doesn't
hurt that my
