Text of NYT article on Brent Scowcroft.
September 20, 2002
Scowcroft Straddles the Worlds of Business and State
By JEFF GERTH and DON VAN NATTA Jr.
WASHINGTON, Sept. 19 - Brent Scowcroft, the former national security official whose voice on Iraq policy has attracted considerable attention, plays so many different public and private advisory roles that even he has trouble keeping them straight.
"All of this sounds confusing," Mr. Scowcroft said in an interview at his consulting firm just a few blocks from the White House. "In a way, it is. I do my best to keep all these things quite compartmentalized."
As head of the Scowcroft Group, he dispenses advice to American corporate clients, for six-figure fees, on foreign affairs.
He serves as an unofficial adviser to the Bush administration's national security team, several of whom worked for him in government or at his consulting firm.
His close relationship to President Bush's father, in whose administration he served as national security adviser, is part of the reason why his op-ed article in The Wall Street Journal last month attracted so much attention and helped turn the capital's deliberations over Iraq into an impassioned national debate.
He is chairman of the President's Foreign Intelligence Advisory Board, which reviews the most important intelligence issues and makes recommendations to the president. As head of the board, Mr. Scowcroft reports to Condoleezza Rice, the national security adviser, whom he employed in the first Bush administration.
He is also chairman of the American-Turkish Council, a business group that aids American corporations doing business in Turkey.
Mr. Scowcroft, 77, calls himself "one of the old men around town." He is part of a coterie of former officials, including Henry A. Kissinger, Richard Allen and Sandy Berger, who have become business consultants, helping corporations assess the risk of doing business in different parts of the world and opening doors to foreign governments. But none enjoy Mr. Scowcroft's access or deep personal connections to members of the administration's national security team.
Although years ago questions were raised about Mr. Kissinger's speaking out on United States policy toward China while he had clients - undisclosed - who were doing business there, Mr. Scowcroft's private work has not drawn attention. Before he joined the first Bush administration, Mr. Scowcroft was a member of Mr. Kissinger's firm.
"I don't have many assets in the world, but my integrity is one and I'm not willing to put that on the line," Mr. Scowcroft said.
When he speaks there is a question, even some confusion, about whether he is a surrogate for the elder Mr. Bush, a role Mr. Scowcroft denies. In 1998, the two wrote a book, "A World Transformed," and last May traveled together to Beijing to meet government leaders.
"Do I have friends all over the government? Of course," Mr. Scowcroft said during a one-hour interview last week. "I've worked with these people for many years."
The Scowcroft Group helps open doors abroad for American corporate clients and "provides access to government agencies," according to the firm's Web site.
Scott Harshbarger, the president of Common Cause, said it was legitimate to raise questions about whether Mr. Scowcroft and other former national security advisers were marketing their government connections. "In our view, this poses the classic potential conflict of interest question," Mr. Harshbarger said. "With the internationalization and globalization of business, the very close connection between national interests of foreign countries and corporations, it is entirely appropriate to raise the issue - where is their independence?"
Mr. Scowcroft said he would take on clients only after determining that what they were doing was in the interest of both the United States and the country in which they worked.
The needs of the few dozen multinational American corporations that have retained the Scowcroft Group, which he founded in 1994, complement his globalist foreign policy views. Mr. Scowcroft declined to identify any of his firm's clients, which he said number fewer than 50. Nor would he discuss his company's fees, but public records show a former principal of his firm, who left in 2001, was paid $710,000 for a year and a half's work.
"We guard our clients' privacy very closely," Mr. Scowcroft said. As a member of President Bush's intelligence advisory board he is required to file a confidential financial disclosure statement that identifies his sources of income. Any potential conflicts of interest are handled privately by the board.
Leon E. Panetta, who was President Clinton's chief of staff and now heads the Panetta Institute of Public Policy at California State University, Monterey Bay, said that while Mr. Scowcroft was a man of high integrity, the questions surrounding the multiple roles of people who advise the president and consult global corporations needed to be discussed further. "Rather than waiting for a person who's not a Brent Scowcroft to make a wrong decision, people should think about the potential conflicts" of "people who play a role advising a sitting president" and who are also "attractive to the business world because you have those ties," Mr. Panetta said.
Mr. Scowcroft said he could avoid any conflicts. "I'm comfortable with what's classified and what is not. I'm comfortable with what is propriety and what is not. If I had never been in the government, no one would have hired me. I hope they are hiring me for my judgment."
In Turkey last November, Mr. Scowcroft pressed the concerns of several American businesses that are members of the council. Motorola, a council member, had separately retained his group to help resolve a private dispute in Turkey with a telecommunications company, Motorola's spokesman said. The telecommunications business dispute was also raised in the council's November meetings, according to Mr. Scowcroft.
"If I were to weigh in on behalf of a client, I would make clear to whoever I was calling in Turkey that I was weighing in on behalf of the Scowcroft Group," he said. "Does it make any practical difference? I'm not sure."
Interviews with corporate executives, former employees of Mr. Scowcroft and company documents show that the firm's clients have included Motorola, Pennzoil-Quaker State, SBC Communications and Textron.
Mr. Scowcroft's business résumé is enhanced by his deep ties to the current Bush administration. Stephen J. Hadley worked for the Scowcroft Group before joining the current Bush administration as a deputy national security adviser.
Another former Scowcroft Group employee, Walter H. Kansteiner III, was nominated last year as assistant secretary of state for African affairs. Secretary of State Colin L. Powell called Mr. Scowcroft to ask permission to hire him. .
But he said he had never tried to influence any of his friends in the administration on behalf of his clients. He also said he would change his Web site to emphasize that its reference to providing "access to government agencies" meant foreign governments.
"I don't consider myself to be an inside adviser," he said.
But Ms. Rice seeks his advice from time to time. "Do we talk now and then?" he said. "Of course, but I'm not going to comment on my conversations with her." On Sunday on the NBC News program "Meet the Press," Secretary Powell said he, too, spoke often with Mr. Scowcroft.
While he does not consider himself to be an inside adviser, Mr. Scowcroft also said that he did not see himself as an outside critic of the president. "If the president had said he was going into Iraq, I would not have written that piece," he said, referring to the Wall Street Journal article in August. "I will support him."
Despite his ties to foreign governments, Mr. Scowcroft said his firm did not represent any countries in Washington. But the Turkish government views his chairmanship of the American-Turkish Council as "a big opportunity for Turkey," said Naci Saribas, the deputy chief of mission at the Turkish Embassy. Turkey, a neighbor of Iraq, has serious misgivings about any military action intended to topple Saddam Hussein.
When Turkey's prime minister visited Washington last January, Mr. Scowcroft and American businesses raised anew their concerns, including faster action by Turkey on multibillion defense contracts with Boeing and Bell Helicopter, a unit of Textron; government financing issues for several American-owned power plants in Turkey, including one owned by Enron; and the multibillion dollar business dispute between Motorola and a Turkish telecommunications company.
Mr. Scowcroft and Motorola declined to discuss the work of his group, which has become an issue in a lawsuit filed in New York by Motorola against the owners of the telecommunications company. The owners' lawyers have requested documents from Motorola about Mr. Scowcroft's work, but it has so far declined to produce any, a Motorola spokesman said.
Mr. Scowcroft said he was not even aware that Enron's power plant in Turkey was one of the projects raised in meetings with Turkish officials, but defended the bankrupt Houston energy company and its former chairman, Kenneth L. Lay.
From 1994 to 1997, Mr. Scowcroft served on the board of Enron Group Power and Pipelines, an Enron affiliate that invested in power plants abroad. In addition, Enron's foundation was an early donor to the Forum for International Policy, a research group set up by Mr. Scowcroft. Mr. Lay is one of the forum's trustees.
"He's a friend," Mr. Scowcroft said of Mr. Lay.
In October 2000, Mr. Scowcroft traveled to China with Irwin Jacobs, chief executive of Qualcomm, the telecommunications company on whose board Mr. Scowcroft serves. They met with China's prime minister, Zhu Rongji. "I think that meeting with Premier Zhu helped, obviously," Dr. Jacobs said.
Qualcomm has agreements to provide technology to China Unicom, the country's second largest telecommunications corporations.
Mr. Scowcroft, and his colleagues and friends, said his continuing involvement in global matters was not driven by money. "I'm not a businessman," he said. "I'm not an entrepreneur. I'm an old man who's just trying to stay active and not vegetate."
Copyright 2002 The New York Times Company. |