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BIG OIL CHANGE
What's Really Driving Bush's Foreign Policy
by Wayne Madsen
Washington

After only a few months as president, George W. Bush shocks visiting

       Indian Foreign Minister Jaswant Singh by calling him into the Oval

        Office for an unexpected chat. After years of supporting Montenegro's
independence from Serbia, Bush suddenly reverses American policy

    and adopts a hostile attitude toward the country after it freely elects a pro-
independence government. Vice President Dick Cheney uncharacteristically
takes an interest in Bangladesh, one of the world's poorest countries. Shortly
after becoming secretary of state, Colin Powell arranges an April peace
summit between the presidents of Azerbaijan and Armenia. The peace talks,
held in Key West, are not even interrupted by the capture of a Navy spy
plane and its crew by China.
These sudden changes in foreign policy did not arise from any altruism

        on the part of the Bush team. Instead, they are emblematic of the

        immense power that Big Oil now exercises over Washington's foreign

             policy apparatus. And nowhere is this more apparent than in the

           respective relationships that Bush and Cheney have with two energy
industry magnates--Bill Gammell of Cairn Energy and Steve Remp of Ramco
Energy. Both companies are headquartered in Scotland.
Dubya's relationship with Bill Gammell has a historical precedent. In 1952,
after his grandfather Prescott Bush, the

TERRY LABAN
Connecticut senator, made an entreaty, Gammell's father, James, invested
in young George H.W. Bush's Zapata Petroleum Company. Zapata would
figure heavily in the CIA's early covert operations aimed at toppling Cuba's
Fidel Castro. Bush supplied two Zapata Oil exploration ships--the Zapata and
the Barbara
           J.--for the CIA's abortive 1961 Bay of Pigs invasion of
Cuba.

Bill Gammell, whom Dubya calls "Billy," is a bona fide "FOW"--friend

     of 'W'--and their relationship dates back to 1959, when a teen-age

     Bush spent the summer at the Gammell family's Scottish estate. That

            was Dubya's first trip to Europe. Bush again traveled to Scotland

           in 1982 when he needed Billy to ante up some cash for his fledgling
Arbusto Energy Company in Midland, Texas. Billy was one of 50 original

          investors who sank some $3 million into the enterprise. Arbusto

       soon fell on hard times (though Bush made millions through a series

           of bailouts and sweetheart deals). Billy and the other investors

      got back just 20 cents on every dollar of their investment. Yet Bush
returned to Scotland in 1983 for Billy's wedding. These visits were to leave an
indelible mark on his worldview.
Unlike Dubya, who seemed to have the reverse-Midas touch when it

   came to the oil business, Billy Gammell struck pay dirt. In 1999,   his
Cairn Energy found oil off the west coast of India in the Gulf of Cambay--a
lucrative addition to the company's already sizable natural gas interests in
Bangladesh and oil wells on the Indian mainland. So when Dubya called the
Indian foreign minister into the Oval Office, chances are good they were not
discussing the humidity in New Delhi. One of Bush's main political backers,
Enron, is expanding its operations to India and is already running a privatized
electrical distribution system in Bombay.
And the shadow of Dick Cheney could not have been very far from that
meeting. Cairn Energy and Halliburton, Cheney's old

STEVE ANDERSON
firm, are partners in developing Bangladesh's natural gas fields in the Bay of
Bengal. Moreover, Cheney has particularly close ties to current Bangladeshi
Prime Minister Sheik Hasina Wazed and former Prime Minister and principal
opposition leader Begum Khaleda Zia. In 1998, Cheney went to Bangladesh
and met the two women politicians. However, his real interest was in visiting
the Sangu offshore natural gas fields, a joining venture between Halliburton

           (a 25 percent stakeholder), Cairn, Shell Oil and Bangladesh's state-
owned Petrobangla energy company.

Bush and Cheney's interest in India and Bangladesh has coincided   with
concern about a growing Maoist rebellion in nearby Nepal. U.S.   military
leaders--including Adm. Dennis Blair, commander of U.S.   forces in the
Pacific--have called for increased American military   support for Nepal's
armed forces in putting down the insurgency.   In May, Army Sgt. Maj. Jack
Tilley told the House Armed Services   Committee that the United States had
troops in Nepal, but he did   not elaborate on their mission. American military
intervention on   the Indian subcontinent is part of Blair's pet project called
the Multinational Planning Augmentation Team, or "Tempest Express,"

        which seeks to put the U.S. military in charge of "peacekeeping" and
"crisis management" exercises in Asia and is particularly focused on military-
to-military links with Nepal and Bangladesh.
Nepal's King Birendra, to the chagrin of Nepal's armed forces, had wanted to
negotiate with the Maoists and avoid a bloody military confrontation. But in
June, the reportedly drunken and enraged Nepali crown prince allegedly
gunned down the king, queen, his two siblings and several high-ranking royal
advisers before turning the gun on himself. Although Nepal's government
stands by this explanation, much of the country's population suspects a
wider conspiracy.
An American human rights official working in Kathmandu disclosed,

   on the condition of anonymity, that the new king, Gyanendra, has

   maintained a long-term relationship with the CIA (an organization   with a
long history of "offing" leaders around the world, especially   where U.S.
economic interests are at stake). Not surprisingly, Gyanendra   supports
taking a much firmer line with the Maoists, a position   welcomed by the
Pentagon, Langley and, naturally, the nervous Western oil companies that
are increasing their profiles and profit margins on the subcontinent. A Maoist
Nepal might encourage similarly minded   rebels, such as the Maoist Naxals
who operate in six neighboring   Indian states, and other leftist guerrillas in
Bangladesh and Burma--a   nightmare scenario for risk-wary oil and natural
gas investors.

The Indian Naxals, like their comrades in Nepal, have publicly claimed that
the Nepali regicide was the work of the CIA and India's intelligence service.
But such allegations have not just come from the rebels. Former high-ranking
U.S. and Canadian intelligence officials who have been in contact with the
Nepali expatriate community in North America quietly have confided that
there is definitely "something" to allegations of U.S. intelligence involvement
in the Kathmandu massacre.
While his relationship is not as close as Gammell's with Dubya, Ramco's
Steve Remp


STEVE ANDERSON
has enjoyed a mutually beneficial relationship with Cheney and Halliburton.
Remp, a dual U.S.-British citizen, has made millions from Ramco's oil
discoveries in Azerbaijan. But pumping the oil from the Caspian Sea's Azeri-
Chirag-Gunashli fields would not have been possible without the help of
Kellogg Brown & Root, a subsidiary of Halliburton that provides infrastructure
and logistics support around the world to customers ranging from oil
companies to the Pentagon. Indeed, some of Ramco's top officials are
veterans of Halliburton and close Cheney associates--such as Senior
Executive Vice President Dan Stover, Halliburton's former vice president for
global operations under Cheney.

In 1994, Ramco partnered in the Azerbaijan operation with Pennzoil,

    a company that was created when South Penn Oil Company was bought
by Dubya's daddy's Zapata Petroleum Company (which itself had been

       launched with the help of a $50,000 investment from James Gammell).
In 1999, PennzEnergy company--the new incarnation of Pennzoil--was
bought by Devon Energy of Oklahoma City. Although Ramco has sold

      its concessions in Azerbaijan to Amerada Hess (directors of which

        have included Bush I Treasury Secretary Nicholas Brady), Devon
continues to play an important role in oil production in the Caspian fields.


Devon too has important links to the Bushes. A former member of its board
is Brent Scowcroft, national security adviser to Bush the Elder. And Devon
President J. Larry Nichols was an outspoken critic of the Clinton
administration's environmental policies, which he claimed hurt the energy
industry. Not surprisingly, he was also an early donor to the Bush campaign,
and, according to politicalmoneyline.com, he and his wife have donated
thousands of dollars to GOP candidates over the past several years. These
do not count the contributions to the GOP of Devon's own political action
committee, officially registered in the midst of Bush's bruising primary battle
with John McCain. According to the Center for Responsive Politics, the
Devon PAC gave $16,200 to GOP House and Senate candidates in the last
election, but only $1,500 to Democrats; and in 1999, Devon contributed
$20,000 to the Republican National Committee.
The interests of Devon and other U.S. oil companies involved in Azerbaijan
are championed by the U.S.-Azerbaijan Chamber of Commerce. Its former co-
chairman is Richard Armitage--an Iran-contra figure who was accused by
Independent Counsel Lawrence Walsh of having detailed knowledge of the
1985 shipment of Hawk missiles to Iran while serving as an assistant
secretary of defense. Armitage is now deputy secretary of state and Colin
Powell's chief adviser. No wonder Powell did not waste any time in arranging
the Key West peace talks between Azerbaijan's President Heydar Aliyev and
Armenia's President Robert Kocharian. Since the two countries became
independent after the collapse of the Soviet Union, they have been fighting

            over the Azerbijani-controlled but Armenian populated enclave of
Nagorno-Karabakh. A bloody war lasted from 1992 to 1994 until a cease-fire
was negotiated by Russia. The further development of trans-Caucasus oil
pipelines cannot occur until the troublesome problem of Nagorno-Karabakh is
settled.
The importance of settling the Nagorno-Karabakh conflict to the Bush
administration was apparent in comments made at a March 30 State
Department briefing moderated by spokesman Philip Reeker. "In the 10th
day of the Bush administration, President Bush dealt directly with this
question," he said. "In the 10th week of the Bush presidency, we're having
peace talks in Florida. There are communications at the presidential level,
the level of the secretary of state, level of the national security adviser."
It seems the Bush administration can be spurred into lightning-fast   action
when oil is at stake. But the administration

STEVE ANDERSON
is also capable of Machiavellian ambivalence when it comes to oil politics.
Consider Montenegro: During the Clinton administration, the United States
encouraged Montenegro to secede from Slobodan Milosevic's Yugoslavia.
The United States provided weapons, training, money and private military
advisers to Montenegro's pro-Western president, Milo Djukanovic. But after
Milosevic was ousted in October, the prospects for Montenegrin
independence began to change.

After his Azerbaijani success, Remp struck black gold again--this time off
Montenegro's Adriatic coast. The Montenegro oil reserves may rival those
found in the Caspian. Although Montenegro's government is pro-Western and
has given Ramco a generous majority stake in the Adriatic oil profits,
Djukanovic has been charged with corruption by some Western
governments. As Arne Jan Flolo of the Organization for Security and
Cooperation in Europe told the New York Times last September: "Corruption
is a time bomb ticking under the Djukanovic government."
In April, State Department spokesman Richard Boucher signaled a change in
U.S. policy toward Montenegro, saying that Washington now favors "a
Democratic Montenegro within a reformed and Democratic Yugoslavia." That
statement was a far cry from Madeleine Albright's earlier prodding of
Montenegro to break away from Yugoslavia. The Bush administration
apparently has decided to wait for a signal from the oil barons. Recently,
senior Bush advisers held secret negotiations with Montenegrin trade
officials. Who will give the oil companies the best deal? Djukanovic in the
Montenegrin capital of Podgorica or Kostunica in Belgrade? That decision
may ultimately determine whether a Montenegrin or Yugoslavian flag will fly
over the small Adriatic republic.
Much has been written and said about the influence of Big Oil over   the
policies of Bush and Cheney on global warming, drilling in the   Alaskan
wilderness, and their opposition to capping energy prices   in California. Yet
such is the power of the industry over the Bush administration, that Big Oil
may influence, if not actually determine,   how international borders are
drawn, which leaders remain as heads   of state and government, and what
countries sit as members of the United Nations. Apparently, that's what $26
million in political contributions (the amount Big Oil gave to Republicans
during the last election) can buy.
Wayne Madsen is an investigative journalist based in Washington. He is the
author of Genocide and Covert Operations in Africa 1993-1999, an expos� of
recent U.S. involvement in inter-ethnic warfare in Africa.

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