http://www.seen.org/pages/media/20030414_crude_nytimes.shtml

The New York Times
April 14, 2003
By BOB HERBERT

Ultimate Insiders

Let's go back some 20 years. Ronald Reagan was president. George 
Shultz was secretary of state. Lebanon was in turmoil. And Iraq and 
Iran were locked in a vicious war that had sharply curtailed the flow 
of oil out of Iraq.

In December 1983 Donald Rumsfeld was sent to the Middle East as a 
special envoy in an effort to jump-start the peace process in Lebanon 
and advance a presidential initiative for peace between Arabs and 
Israelis.

One of his stops was Baghdad, where he met with Saddam Hussein. That 
was unusual. Mr. Rumsfeld was the highest-ranking U.S. official to 
visit Iraq since 1967, when Iraq and other Arab nations severed 
relations with the U.S., which they blamed for Israel's victory in 
the Six-Day War.

The primary goal of Mr. Rumsfeld's visit to Baghdad was to improve 
relations with Iraq. But another matter was also quietly discussed. 
The powerful Bechtel Group in San Francisco, of which Secretary 
Shultz had been president before joining the Reagan administration, 
wanted to build an oil pipeline from Iraq to the Jordanian port of 
Aqaba, near the Red Sea. It was a billion-dollar project and the U.S. 
government wanted Saddam to sign off on it.

This remains, two decades later, a touchy subject. When I brought the 
matter up last week with James Placke, who in 1983 was a deputy 
assistant secretary of state for Near Eastern affairs, he said, "My 
memory on that is kind of foggy."

But at the mention of Bechtel, he said: "Ahh, now you've said the 
magic word. Now I remember. Bechtel was promoting it."

Bechtel was promoting it and the Middle East peace envoy, Donald 
Rumsfeld, was pushing it with top Iraqi officials. A previously 
classified State Department memo that is contained in a report on the 
pipeline by the Institute for Policy Studies in Washington described 
how Mr. Rumsfeld broached the subject during a private meeting with 
Iraq's foreign minister, Tariq Aziz.

The memo, from Mr. Rumsfeld, said: "I raised the question of a 
pipeline through Jordan. He said he was familiar with the proposal. 
It apparently was a U.S. company's proposal. However, he was 
concerned about the proximity to Israel as the pipeline would enter 
the Gulf of Aqaba."

The Iraqis were afraid the Israelis might destroy the pipeline. "I 
said I could understand that there would need to be some sort of 
arrangement that would give those involved confidence that it would 
not be easily vulnerable," Mr. Rumsfeld wrote in the memo. He added, 
parenthetically: "This may be an issue to raise with Israel at the 
appropriate time."

It was known by the fall of 1983 that Iraq had used chemical weapons 
against Iran. That did not prevent the U.S. from pursuing improved 
relations with Saddam, or curb the enthusiasm for the Aqaba pipeline 
- a project promoted by a company that had given the Reagan 
administration not just its secretary of state, but also its 
secretary of defense, Caspar Weinberger, who had been Bechtel's 
general counsel.

No one seemed concerned about weaving these obvious conflicts of 
interest into the peace process in the most volatile region of the 
world.

Mr. Shultz said he recused himself from anything having to do with 
the pipeline. But it was his State Department that had joined with 
Bechtel to push the project, and everyone knew that Mr. Shultz had 
run Bechtel.

Saddam ultimately gave a thumbs down to the pipeline proposal. "It 
didn't seem to make very good commercial sense," said Mr. Placke, 
"and ultimately I think it failed on those grounds."

The efforts to promote peace in the Middle East also failed. Now, 20 
years later, Mr. Shultz (who is currently on the board of Bechtel) 
and Mr. Rumsfeld are among the fiercest of the war hawks. They wanted 
war with Iraq and they got it.

Their philosophical flights in favor of the war would seem more 
graceful, and much less unsavory, if they weren't flying with the 
baggage of Bechtel and other large commercial interests that have so 
much to gain from the war.

This unilateral war and the ouster of Saddam have given the hawks and 
their commercial allies carte blanche in Iraq. And the company with 
perhaps the sleekest and most effective of all the inside tracks, a 
company that is fairly panting with anticipation over oil and 
reconstruction contracts worth scores of billions of dollars, is of 
course the Bechtel Group of San Francisco.

Copyright 2003 The New York Times Company


See:
Crude Vision: How Oil Interests Obscured US Government Focus On 
Chemical Weapons Use by Saddam Hussein
http://www.seen.org/pages/reports/crude.shtml


See also:
Rumsfeld's Old Flame 
http://www.TomPaine.com/feature.cfm/ID/7577




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