http://www.worldnetdaily.com/bluesky_smith/19990615_xcsof_indonesian.shtml

In 1994, U.S. Commerce officials knew there was a crime in
progress.  The crime involved millions of U.S. taxpayer dollars
being used to payoff corrupt foreign politicians.  The Commerce
Dept. did not stop the crime.  In fact, the Commerce Dept. did
its best to help the criminals succeed.

On November 16, 1994, Bill Clinton and the late Ron Brown
traveled to Jakarta, Indonesia, for the Asia Pacific Economic
Conference (APEC).  In Jakarta, Clinton signed deals to supply
Indonesia with electric power using U.S. taxpayer loans.  The
deals were worth billions to U.S. corporations such as Cal
Energy, Mission Energy and General Electric.

"As markets expand, as information flows, the roots of an open
society will grow and strengthen and contribute to stability,"
stated Clinton during the 1994 signing.

In September 1994, long before Clinton signed the power deal,
the Commerce Dept. documented that Indonesian dictator Suharto
had cut himself in for a bribe.  According to a 1994 Commerce
Dept. document, ".75% ownership" of a $2 billion dollar, U.S. -
backed power project was given - at no cost - to dictator
Suharto's second daughter, Siti Hediati Prabowo.

Ms. Prabowo's ".75%" ownership totals to a free gift from the
U.S.  taxpayer of $15 million.  The $15 million is part of a $50
million bribe split between Ms. Prabowo and other Suharto
relatives.  In return, the Indonesian dictator selected
companies owned by major Clinton donors to build the Paiton
power plant in east Java.

In 1998, the Commerce Dept. returned a "blacked-out" version of
a document that it had previously sent in full.  The mistakenly
released document from the Commerce Dept., titled "Indonesia
Advocacy Projects", contained information on the privately held
east Java Paiton Power Plant.

The Paiton power project consisted of two 600 million watt,
coal-fired plants to provide electricity for east Java.  The
partners in the U.S. led consortium included Mission Energy,
Mitsui & Co., Ltd. of Japan, General Electric Capital
Corporation of the U.S., and P.T. Batu Hitam Perkasa, an
Indonesian firm formed in 1989 to participate in the development
of the country's private power industry.

The leader of the U.S. project in the Paiton power plant,
Mission Energy, is also a partner of Indonesia's Lippo group, a
consortium part owned by Indonesian billionaire Moctar Riady and
the Chinese Army CITIC (China International Trust and Investment
Corporation) bank.

According to Federal Election Commission records, Mission Energy
CEO, John Bryson, donated money to Clinton's campaigns and
donated money to Clinton's legal defense fund.  Moctar Riady,
Bryson's partner in the Paiton project, is also accused of
illegally donated money to Bill Clinton's political campaigns.

A September 1994 Commerce Department document states that the
Indonesian Paiton project encountered difficulties with
financing because the Asian Development Bank (ADB) knew it also
contained the Suharto family kickback.  Suharto's son-in-law,
according to the U.S. government advocacy document, was known to
be a shareholder in P.T. Batu.

On Sept. 30 1994 Commerce Dept., State Dept., Mission Energy and
several consultants met to review the Paiton project.  According
to hand written notes:

  "ADB is still considering this, b/c of very minimal
   involvement of Indo ruling family in the Mission project...
   ADB's delay revolves around concern for projects in Indonesia
   involving the first family.  .75% ownership of the Mission
   project by daughter of Indo pres."

In another document dated, November 1, 1994, only days before
the Jakarta signing by Clinton, the Commerce Dept. wrote:

  "Ambassador Barry stated that the project is facing two
   problems," "(i) the ADB financing may cave in and (ii) EXIM
   financing.  Regarding ADB, technical questions have been
   satisfied, but ADB is skittish about involvement of
   Indonesia's first family (a minority shareholder is married
   to Pres. Suharto's daughter)."

The Commerce Dept. documented that Indonesian Dictator Suharto
had cut his son-in-law into a kickback scheme.  The documents
show that the Commerce Dept. was not only aware of Suharto's
corrupt activities but quietly cooperated by seeking U.S.
backed financial aid for the project.

The Commerce documentation shows that U.S. Ambassador Barry
worked directly with Executive Director of the Asian Development
Bank, Linda Yang, to obtain financial support despite the
questions of kickbacks to Suharto.  In fact, one document
states that Ms. Yang was "doing all she can" to help Indonesia
obtain the financing for Paiton.

However, after the signing by Clinton, in 1995, the ADB decided
to not finance the Paiton deal due to their concerns.  According
to notes taken by Commerce Dept. officials at a Paiton meeting,
"Mission Energy expecting default by March (1995)... first
project to go on bond market $180 M and will default also."

In April, 1995, Ron Brown came to the rescue and provided the
U.S. EXPORT-IMPORT bank and the Overseas Private Investment
Corporation ("OPIC") to substitute for the Asian Development
Bank.  $1.82 billion in limited recourse project debt was
provided to Paiton by The Export-Import Bank of Japan, the
Export-Import Bank of the United States, the Overseas Private
Investment Corporation ("OPIC") of the United States, and eight
commercial banks.

Commerce documents show that Lippo business partner Mission
Energy (now named Edison Mission Energy) received strong Clinton
administration support for the Paiton project.  In March 1995,
Mission Energy CEO John Bryson wrote Commerce Secretary Brown:

  "Dear Ron - Thank you once again for being so ready to support
   a successful completion of the Paiton Power Project...  The
   U.S.  Government, from the President on down, has put a high
   priority on the Paiton Project."

Furthermore, the Paiton power plant was designed to burn
"low-sulfur Indonesian coal."  In 1996 President Clinton created
he 1.7 million-acre Grand Staircase-Escalante National Monument
in Utah, placing off-limits the world's largest deposit of
low-sulfur coal.  In the process, Clinton also greatly enriched
Suharto.

The coal for the Paiton plant is provided under a no bid
contract from the global monopoly of "soft" environmental coal.
Ms. Prabowo's bother-in-law, Hashim Djojohadikusumo, owns the
Indonesian reserves of soft coal.  Mr. Hasim is also another
partner in the Mission-Energy/GE partner at Paiton.  Hashim is
not only an old friend of Suharto but Hashim's brother is
Suharto's son-in-law and a General in the Indonesian Army.

Today the Indonesian power companies are bankrupt.  Some U.S.
companies, such as Cal Energy, have taken their Indonesian
partners to court for non-payment.  Indonesia cannot pay for the
power plants nor can their population afford the inflated rates
driven by the Suharto corruption.

The U.S. jobs created by the corrupt project are gone.  Yet, the
Paiton profits lined more than one pocket.  Clinton and Suharto
are not the only political connections to the corrupt Paiton
power plant.  According to a December 1998 article in the Wall
Street Journal, "Dan Quayle, Robert Rubin and Ron Brown all
pushed for Paiton One at various times while they were in
government.  Warren Christopher and Henry Kissenger pushed for
it as Mission-GE lobbyists."

The corruption continues to this day.  The Commerce Dept. has
done its best to conceal evidence and hide the facts.  On June
7, 1999, the Commerce Dept.  refused to release all the
information on the Indonesian "Paiton" power plant, citing
"commercial" privacy.  Many of the documents released by the
Commerce Dept. contained whole sections blacked out for
"privacy" reasons.

However, mistakes were made.  Once again, this reporter has
obtained the complete copy of a document blacked out as secret
by the Clinton administration in 1999.  The critical section
blacked out by Commerce officials states:

  "First Family Involvement:  ADB had raised concern about first
   family involvement during is consideration of the $50
   million."

The blacked-out version of the same document from the U.S.
Commerce Dept. clearly demonstrates that the privacy of former
dictator Suharto comes before the right to know how U.S. tax
dollars are spent.  The blacked out documents show that
corruption and cover-ups still continue to be the norm inside
the Clinton administration.

================================================================
source documents -

http://www.softwar.net/paiton2.html


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