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  • An '80s business overture that fits a lifetime 'W' pattern of CIAdea

    An '80s business overture that fits a lifetime 'W' pattern of CIA dealings
    Bush's Courting of Saddam
    by Wayne Barrett With Special Reporting by Nathan Deuel
    The Village Voice, October 26th, 2004 10:20 AM

    Sarkis Soghanalian, the international arms dealer who bought billions
    in weapons for Saddam Hussein, says he was approached at a Newark
    airport luncheon meeting in the early '80s by a representative of
    then Texas oil entrepreneur George W. Bush, who was seeking to do
    business in Iraq.

    Featured in lengthy interviews on 60 Minutes, 20/20, and PBS's
    Frontline over the years, the twice-convicted Soghanalian was dubbed
    the "Merchant of Death." He was released from prison at the request of
    federal prosecutors who, as recently as 2001, cited his "substantial
    assistance to law enforcement." Justice Department officials questioned
    him in Washington this year about an ongoing case in Peru involving
    the sale of 10,000 assault rifles to Colombian guerrillas, but they
    did not extradite him though he is facing a possible 15-year jail
    sentence there for brokering the deal.

    Soghanalian recalled in half a dozen phone interviews with the
    Voice that he met with a business associate of W's whose full name he
    cannot recall but who, like Soghanalian, was Armenian. The meeting was
    arranged, he says, by a friend who was a leader in Armenian charity
    circles. Soghanalian recalls that the business associate told him:
    "George W. Bush wants to do business in Iraq."

    "Unfortunately, I was pretty high-profile at the time," says
    Soghanalian, "and everyone was trying to get close to me. Why would
    I want their business? I knew his father. What did I need him for?"
    Soghanalian, who had a stopover in Newark on his way to Baghdad, says
    he can't remember any specifics about the suggested business. The
    businessman, he said, "was sent on behalf of Bush" and "said to me,
    'This is an important man.' " Soghanalian claims that the man told him
    that W had "a lot of contacts overseas" and that Soghanalian replied:
    "I have contacts too. I don't need more contacts." Soghanalian says
    he has known the senior Bush since at least 1976, when Bush was CIA
    director. Soghanalian has had such a long-standing CIA relationship
    that David Armstrong of the National Security News Service calls him
    the agency's "arms dealer of choice."

    Soghanalian says Bush's representative continued to "chase me around"
    after the airport meeting. Living in an overseas location he did not
    want disclosed, the 300-pound, 75-year-old legendary dealer said:
    "I am not where I am and have never been where I was." Though he
    volunteered the story of the Newark solicitation, he expressed concerns
    about "angering" the Bushes and repeatedly cut off later interviews,
    citing health concerns.

    It's widely known that prior to the 1990 invasion of Kuwait, the
    Reagan and George H.W. Bush administrations maintained friendly ties
    with Hussein, but there has never before been any indication that the
    current president was seeking business deals with him. In the '80s, the
    younger Bush managed a series of struggling Texas-based oil companies,
    one of which, Harken Energy, did secure a major oil deal in Bahrain
    that caused a public furor, since it appeared to have been awarded to
    earn favor with the Bush administration. Bush's storefront start-up
    Arbusto (later renamed Bush Exploration) was in deep trouble in the
    '83-'84 period when Soghanalian says the approach occurred.

    The Soghanalian overture is only one of several Bush business
    intertwinings with the dark side, starting way back in 1974, when
    he was 28 years old. Like the Soghanalian adventure, each of these
    tales has CIA ties, which touch virtually every Bush business venture
    until 1990.

    A mysterious Alaska summer

    Neil Bergt, The New York Times' "richest man in Alaska" in the '80s,
    gave W a summer job in 1974, when he was in between years at Harvard
    Business School. Bergt says he doesn't know why the young Bush--still
    living, by his own account, the "wild and woolly days"--wanted to come
    to Fairbanks, where the company was based. But a Houston construction
    executive contacted him and asked him to hire Bush, who has been
    described by professors and friends as an out-to-lunch business
    student. Bush's father was then the chairman of the Republican National
    Committee, installed by President Nixon, and Bush Sr. would wind up
    that summer appearing on the White House lawn when Nixon resigned,
    waved farewell, and climbed aboard the presidential helicopter for
    the last time. Bergt concedes that the Bush job was "a political hire."

    In several wide-ranging interviews, Bergt oscillated between demands
    that the Voice pay him $250,000 for "the real story" that "only I
    can tell" about Bush and insisting that there was "no story here"
    and that Bush spent a quiet summer preparing a business plan for him.
    Asked why Bush preferred a summer in Alaska to Wall Street or Houston,
    Bergt suggested that the motive was nefarious, and that a full account
    could affect the election, adding: "I'm not talking without money."

    Bergt's company, Alaska International Air, certainly has a checkered
    history. In 1979, it sold a coveted military cargo plane, a Hercules
    C-130, to Libyan dictator Muammar Qaddafi, despite a U.S. ban that
    specifically barred the delivery of that particular plane. Bergt
    contends he was tricked by the middleman on the $8.6 million
    transaction --none other than Sarkis Soghanalian. Soghanalian, who
    claims to have never done an arms deal that wasn't covertly
    sanctioned by the CIA, says Bergt, who also has a plethora of CIA
    ties, was fully aware that Qaddafi was getting the plane and
    participated "voluntarily."

    Ironically, the Bergt plane and two others illicitly sold to Libya
    were soon used to invade neighboring Chad and to fly enriched uranium
    from Niger for Qaddafi's fledgling nuclear development program. Bush
    has claimed credit recently for convincing Qaddafi to abandon his
    nuclear program, and once claimed that Saddam Hussein had received
    uranium from Niger as a justification for the war. While another top
    AIA executive, Gary White, says he met Soghanalian in Geneva on a
    couple occasions and even stayed in his Florida mansion, Bergt just
    had lunch with him in San Diego.

    "Gosh, to find out later that he was an arms merchant," Bergt now
    says. "We had several incidents where we dealt with people and later
    we'd read about the things they did in Time magazine," which was then
    exposing CIA covert operations. "We were doing a lot of wild stuff
    all over the place," recalls Bergt, specifically including the period
    that W worked there.

    Indeed, in September 1975, Bergt says, "I sold a Herc to Idi Amin for
    $10 million," celebrating decades later that he made the African
    despot "pay through the nose." Bergt acknowledged that there
    were "some CIA guys surrounding the deal with Idi," just as he
    acknowledges that AIA, under its prior incarnation as Interior
    Airways, was doing CIA-tied business back to 1968-69. "I wasn't a CIA
    proxy company," says Bergt, referring to airlines that were actually
    no more than fronts for the agency. "I just wished I was." One of his
    pilots recalled that Bergt actually bought planes from CIA firms like
    Southern Air Transport.

    The very summer that W worked at the company, it was participating in
    the most secret and expensive CIA venture ever, the Glomar Explorer.
    The agency spent a half- billion dollars on what congressional
    critics called a boondoggle for billionaire Howard Hughes: the
    construction of a ship the length of three football fields with a
    giant clawed arm designed to dive 17,000 feet to bring a sunk Soviet
    sub to the surface. In early August, the Glomar dropped the sub and
    shattered it on the ocean floor off the Alaskan coast. White
    remembers doing an airdrop to supply the Glomar, and Bergt says that
    W "may have made some runs with us"--though he adds that he didn't
    even know Bush was a pilot.

    When the senior Bush was vice president in 1986 and his aides were
    deeply involved in supplying the Contras in Nicaragua, Bergt's
    airline, renamed MarkAir, did at least a half-dozen runs to a dirt
    strip in Honduras hauling aid, some of it in sealed containers, for
    the rebels. "If it's guns and ammunition, I could care less," Bergt
    told reporters at the time. Again, Soghanalian and the CIA were also
    deeply involved in the Contra traffic. The Anchorage Daily News
    reported that at least two of the flights were not registered with
    customs, avoiding the requirement of "an export declaration of
    everything" aboard.

    Bergt even offered to regale the Voice with stories of "drug running
    and Iran-Contra." A day later, he called his own offer "absolute
    bullshit," though he insisted that the Anchorage paper already
    intimated both in connection with his company. He branded the
    stories, which a Voice search of years of the Anchorage paper's clips
    could not locate, as "claptrap" and "yellow journalism."
    Coincidentally, when Bush answered questions about his own alleged
    cocaine involvement during the 2000 campaign, he implicitly suggested
    that 1974 might be the last year he did drugs, claiming that he
    could've filled out a federal questionnaire about illegal drugs going
    back 15 years prior to his father's presidency.

    Bergt recalls the senior Bush calling him after his son's summer
    there at least once, and says Neil Bush attended a 1988 fundraiser he
    hosted in his Anchorage home for the Bush presidential campaign. A
    check of federal election records indicates that Bergt, who's also
    contributed lesser amounts to W's campaign, raised at least $6,500
    for the 1988 campaign. One of Bergt's brothers works for the Federal
    Aviation Administration and his son-in-law is the Interior Department
    official in charge of overseeing the Alaska pipeline. There is no
    indication that political influence was involved with obtaining
    either job.

    A couple of weeks before the 2000 election, the Times first reported
    about W's Alaska summer, calling it a chapter that "has largely
    escaped attention," omitted, unlike five other summer jobs, from his
    autobiography. Bergt said then that his CIA reputation was
    undeserved, but in fact, even though Bush's summer there precedes by
    18 months his father's rise to CIA director, the company has a legion
    of agency ties. That would become a W pattern.

    The Texas CIA connections

    Michael Moore made James Bath famous. A former National Guardsman in
    W's champagne unit in the '70s, the Houston-based Bath mysteriously
    became the U.S. representative for the bin Laden family shortly after
    the senior Bush became CIA head in 1976. Bath was also one of the
    initial investors in Arbusto, W's first energy company venture, in
    1978, kicking in $50,000. What Moore didn't say, but Houston Post
    reporters John Mecklin and Pete Brewton "independently confirmed,"
    was that Bath himself "had some connections to the CIA." In his only
    known interview on the subject, Bath "equivocated" with Craig Unger,
    author of House of Bush, House of Saud, saying there are "all sorts
    of degrees of civilian participation in the CIA" and those that do it
    don't talk about it. A former Bath business partner says Bath told
    him he was CIA.

    Bath also became the U.S. representative of Khalid bin Mahfouz, the
    largest shareholder in the notorious Bank of Credit and Commerce
    International, the biggest bank fraud in history and springboard for
    the Islamic terrorist nightmare of today. Countless news stories and
    books have documented the myriad of connections between Harken Energy
    and the Saudi-dominated BCCI, which was also pivotal in financing
    illegal arms sales to Saddam.

    Bush helped arrange a $25 million cash infusion for Harken in 1987
    through Arkansas investment banker Jackson Stephens, who'd helped
    guide BCCI's acquisitions in America, to secure financing for Harken,
    which had acquired Bush's failed company and made him a six-figure
    director. Stephens arranged for two BCCI-tied investors to bail the
    company out: the Union Bank of Switzerland, a BCCI partner in a third
    bank; and Abdullah Taha Bakhsh, whose Saudi Finance Co. was partly
    controlled by BCCI shareholders.

    When BCCI exploded in scandal in 1991, the senior Bush tried to
    distance himself from any knowledge of the bank or its principals,
    even though a top White House aide, Ed Rogers, was put on a $600,000
    retainer by one of the bank's founders, Kamel Adham. Bush denied even
    knowing Adham, who was the head of Saudi intelligence when Bush ran
    the CIA. But Soghanalian told the Voice that the two "were friends a
    long time ago," adding that George H.W. Bush "can say whatever he
    wants." Soghanalian says he "escorted" Adham to a 1976 meeting with
    Bush at the Waldorf Astoria, where Adham had a whole floor for five
    days. "This is when they were organizing the BCCI bank stuff," says
    Soghanalian, refusing to discuss it any further.

    When Bush Sr. said, "I don't know anything about this man (Adham)
    except I've read bad stuff about him," Time reporters Jonathan Beaty
    and S.C. Gwynne wrote in their book, The Outlaw Bank, that they were
    sure the president had told "a certifiable lie" and got White House
    reporters to ask the press office about it. They were "incredulous"
    when the press office confirmed the disavowal. Adham himself
    said: "It is not possible for the president to say that," insisting
    that Bush had indicated a day later that he did know Adham but that
    the newspapers refused to print it. Adham wound up pleading guilty on
    BCCI charges, as did Mahfouz, who paid $225 million in restitution
    and penalties.

    Papa Bush's direct links to BCCI--noted CIA historian Joe Trento, also
    of the National Security News Service, wrote that as CIA director,
    he "joined a Saudi prince to create" it--apparently explain the bank's
    willingness to throw money at Harken shortly after it bought out
    Junior's busted Arbusto. The Harken bailout is the last in a series
    of business ties between W and his father's onetime agency, though
    biographers have noted that W's campaigns, like his father's, have
    attracted ex-CIA types. When Jimmy Carter replaced the senior Bush at
    the CIA in 1977, the new director, Stansfield Turner, forced hundreds
    of agents out, and many joined forces with Bush as a kind of out-of-
    power CIA clique. That group continued to function unofficially for
    years, even rising to the fore in the Iran-Contra days of the
    late '80s.

    As W has dallied for months with the CIA reformation promised after
    the 9-11 Commission report, his own historic ties to the agency may
    assume greater importance, should he get a second term.
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