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Bush Friend Arrested for Illegal Arms Trafficking
http://www.thegully.com/essays/argentina/010607bush_menem.html
by Ana Simo

JUNE 7, 2001. A long-time friend of former U.S. President George H. Bush was
arrested today on charges of illegal arms trafficking. If found guilty, he
could face a jail term of up to ten years. Only a phone call from the new
Bush White House might spare him the indignity, he thinks. But the phones
aren't ringing. The friend in trouble is the former President of Argentina,
Carlos Menem, a golfing partner and business benefactor of the elder Bush.
He
is suspected of having illegally sold 6,500 tons of arms to Croatia and
Ecuador between 1991 and 1995, in violation of international arms embargoes.
Menem, who was put under house arrest today by a Buenos Aires federal judge,
said in his defense last weekend that the U.S. knew all about the arms
sales.
State Department spokesman Richard Boucher gave Menem the cold shoulder on
Monday. He was unaware, he said, of any action by the U.S. government
entailing approval or encouragement of Argentinean arms sales to Croatia.
Given how profitable the Menem connection has been for the Bushes, one might
imagine Boucher was frostily putting interests of state ahead of the Bush
family, until you realize that, with a Bush in the White House, they are
essentially one and the same. In 1988, a few months before Menem was elected
for his first term, George W. Bush, the then oilman son of a sitting U.S.
President, had tried to pressure the administration of outgoing President
Ra�l Alfons�n to favor Enron, the Houston-based company, over other, more
qualified bidders to build a gas pipeline in Argentina. He was unsuccessful,
but the Bushes hit it off with the high-rolling, big-spending Menem from the
start. One of Menem's first acts as President was to give Enron a
$300-million sweetheart deal on the pipeline project. The Enron deal
triggered a public outcry in Argentina. A congressional inquiry was
demanded,
and a special prosecutor launched a probe. But after Menem fired him, the
probe fizzled. Enron and its founder and CEO, Kenneth Lay, another close
friend of the elder Bush, were among the biggest contributors to George W.
Bush's presidential campaign, as well as to his two gubernatorial campaigns.
George W. Bush's brother, Neil Bush, also had his fingers in the Argentina
pie. He jetted to Buenos Aires for a tennis match with Menem the day after
the latter was first elected, in 1989. Earlier, Neil had been involved in a
failed plan to drill oil in Argentina, to be financed in part with a
$900,000
loan from the Silverado Savings and Loan Bank in Denver, of which he was a
director. The S&L collapsed in 1988 amidst a financial scandal, costing U.S.
taxpayers more than $1 billion.



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