Enron and Clinton
Charles R. Smith
Wednesday, May 14, 2003
Dirty Deals and the DNC Cash Machine
Fiction writers documented the fall of Enron as a scandal to be linked to President Bush. Yet the U.S. Commerce Department has just released over 5,000 pages of documents that detail the Enron scandal during the Clinton years.
The Commerce materials outline a long-standing and very close relationship between the Clinton administration and Enron. For example, in March 1999 U.S. Commerce Secretary William Daley's trade delegation to China produced several sweet business deals, including a special little gem for Enron.
Enron International China Pipeline, a wholly owned subsidiary of Enron Corp. of Houston, Texas, signed a memorandum of understanding with China National Petroleum Corporation to jointly develop a natural gas pipeline.
"Enron International approached FCS (Foreign Commercial Service) Beijing for advocacy support for its joint venture to build a 4,000 km, $400 million natural gas pipeline from reserves in Sichuan Province to markets in and around Wuhan in eastern China," states an April 1999 Commerce document from Ivone Yang.
"CO Adams worked with Enron and USDOC's Advocacy Center to win the Chinese authorities blessing so that Enron International was able to sign a Memorandum of Understanding during Secretary Daley's visit to China in March 1999 with its partner, China National Petroleum Corporation (CNPC)," notes the Commerce Department memo.
The deal also sealed the first major U.S. energy effort with China National Petroleum. However, China National Petroleum already has great experience at building pipelines under hostile conditions. CNPC is a Chinese army-owned firm that currently operates an oil pipeline inside war-torn areas of Sudan.
According to an article published in Investor's Business Daily by John Berlau, "Chinese Oil Firm Listing on NYSE Faces Fight Due to Terrorist Links," CNPC operates an oil pipeline through the contested areas inside Sudan.
"Canada's Foreign Affairs Ministry recently found that the oil pipeline that CNPC is building with Sudan's government and others is 'exacerbating the conflict' that has already killed 2 million people," wrote Berlau. "Not only will the oil revenue go to fuel the war effort but Sudan's government is using the pipeline project's airstrip for bombing missions."
Green Gore Goes Red
The work to help Enron even touched the king of "Green" - Al Gore. The Chinese deal with Enron has its roots with former Vice President Al Gore. In 1998, Gore wrote the Chinese leadership, urging them to sign lucrative contracts with Enron.
"In mid 1997, then State Development and Planning Commission (SDPC) Vice-Chairman Zeng Peiyan and the Secretary of Energy signed an Energy and Environment Cooperation initiative. Under that initiative, the two side have held two oil and gas forums and, last spring in Beijing, a national gas experts meeting," notes a 1998 Commerce Department document.
"The largest project to date in promoting natural gas use is the Guangdong Liquefied Natural Gas (LNG) terminal, to be constructed near Shenzhen... Several U.S. companies are actively pursing foreign partner status, including ExxonMobil, Enron and Chevron," noted the Commerce document.
"Vice President Gore recently wrote to Premier Zhu, expressing his hope that the Guangdong LNG project would become an example of successful U.S.-China clean energy cooperation," states the Commerce Department document.
African Enron
In 1995, the Clinton-Gore effort to help Enron win deals crossed all bounds of decency by using humanitarian aid as leverage. The Clinton-Gore National Security Council and Vice President Gore strong-armed Mozambique so that Enron could obtain an exclusive deal using threats of aid cuts as leverage.
Enron failed to match the terms offered by South African firm Sasol for the giant Pande gas fields. However, Enron Corp.'s plan to develop Mozambique's Pande natural gas field was saved from cancellation by a blunt threat from Clinton Security Council head Anthony Lake to cut off future U.S. humanitarian aid to Mozambique.
When Mozambique threatened to cancel the Enron Pande gas deal, Lake promptly suspended a $135 million humanitarian aid payment. Lake also wrote a threatening letter directly to the president of Mozambique.
"There is at the moment a debate of unprecedented intensity in Washington with regard to my government's overall budget, and particularly, funding for foreign assistance. Mr. President, we hope for a mutual effect on Africa on this debate. However, it will become increasingly difficult to defend such programs if some are able to argue that promising countries like Mozambique are not moving ahead rapidly to ensure economic growth through resources development," wrote Lake.
In the end, Mozambique caved, giving the exclusive deal to Enron over a South African firm. However, the only market for the Mozambique gas was a steel plant in South Africa. It would take two visits from VP Gore and Energy Secretary Hazel O'Leary to South Africa to convince the Pretoria government to buy the Enron deal.
Enron DNC Money
During the 1990s, Enron CEO Ken Lay personally contributed $11,000 to former President Bill Clinton for his two campaigns. In addition, Lay gave Vice President Al Gore $13,750 for his 2000 election campaign.
During Clinton's eight years in office, the company and Lay contributed about $900,000 to the Democratic Party. Former Enron officials said an important part of their strategy to win favor with the Gore campaign was a significant increase in the company's donations to Democrats. In 1999 and 2000, the company gave $362,000 in soft-money donations to Democrats.
Most Americans were not aware of Enron's dealings with a Chinese army oil company engaged in oil-for-blood in Sudan. The mass media neglected to inform the U.S. public about the cruel use of humanitarian aid by the Clinton administration that greased an Enron deal in Africa. The fiction writers who spin your news never mentioned the Enron donations to the DNC.
If you paid attention to any of the mainstream media outlets, you can be certain that Enron never existed during the Clinton years. |
