More on Barbour and Chinese money from a link to a speech by Sen. John Glenn - a portion is extracted - I've bolded a few particular sections - like the one where Barbour met with the Chinese foreign minister and the Hong Kong businessman who had loaned the Republican Party $2.1M:
tp://archive.nandotimes.com/newsroom/nt/708GLENtxNT.html
Mr. Chairman, in my full statement I give a number of examples of Republican favors also back and forth, as well as some Democratic, and I see it as it sort of comes out as a match on both here as far as transgressions of the past. And I would ask my -- I don't want to read all those -- I'd ask my entire statement be included in the record.
Mr. Chairman, let me now turn to one specific case, however, that the committee has been investigating, and it is a very clear case of foreign money channeled through a Florida corporation to the National Policy Forum, and ultimately to the Republican National Committee.
On one level, this is an extremely complex story. It's the story of a multimillionaire and his Hong Kong corporation, a desperate, cash-strapped Republican Party, and how they combined to finance the Contract with America in 1994, and then two years later, to infuse the Republican Party with nearly three-quarters of a million dollars in foreign money.
But at its core, this is also a simple story. It's a story of greed and of trust betrayed, as I see it: of a national chairman who betrayed the trust of a wealthy foreign donor, his own party, and the American people when he tried to circumvent the campaign finance laws of this country.
This summer, you will hear many examples of foreign money being funneled to the Democrats and to the Republicans. But this story, as far as I know right now, is the only one so far where the head of a national political party knowingly and successfully solicited foreign money, infused it into the election process, and intentionally tried to cover it up.
We'll be holding hearings on the National Policy Forum and Young Brothers later in this summer, perhaps later this month. And I want to give you just a short preview of what we have learned.
The National Policy Forum was established in 1993 as a think tank to develop Republican ideas and policies. Republican officials claimed that it was independent of the party, and thus would not be subject to the laws and regulations that apply to the Republican National Committee and other political organizations.
In fact, the National Policy Forum was an arm of the Republican National Committee. It was a subsidiary, in the words of a top Republican official. One way the Republicans used their subsidiary was for what can only be described as the laundering of illegal foreign money. I have a few slides that tell this story here. And I think -- I hope the audience can see these. They're on the monitors -- our monitors up here, and I think the larger monitors back there.
The first document's a memorandum entitled "NPF Action." It's from Scott Reed, the executive director of the RNC to officials at the NPF, including the chairman, Haley Barbour. This document was created in anticipation of the formation of the NPF. And under the heading of fundraising, the sixth item, as you can read, is "Foreign." We strongly suggest that Mr. Reed contemplated tapping foreign sources for funding the NPF.
The document is also interesting because it reveals that at its inception, the NPF was little more than a front for the RNC. Here's a high-ranking RNC official recommending the structure, the personnel, and the mission for the NPF. A few weeks later, the National Policy Forum is officially launched, and Haley Barbour, the RNC chairman, as well as the chairman of the NPF as well, declares that "This organization will be separate from the Republican National Committee. Barbour also announces the selection of Michael E. Baroody as NPF president.
The next document is a memorandum for Mr. Baroody providing Mr. Barbour with some reasons for resignation. By this time Mr. Baroody has been at the NPF for a little over a year, has had a chance to see how the organization works.
He is dissatisfied to the point of resigning, and he writes to Mr. Barbour, quote, "We also discussed your belief that considerable money could be raised for this effort from foreign sources. I told you again -- even before starting at NPF -- I thought you were right about the possibility foreign money could be raised, but thought it would be wrong to do so. The idea nonetheless seemed to hold some fascination and continued to be discussed until well after Denning came on the scene," end of quote. And this seems to jibe with what RNC executive director Scott Reed wrote to Barbour in the earlier memo.
The Baroody letter is an extraordinary document. Here's the president of the NPF stating quite clearly that the organization is nothing more than a Republican front group, describing the so-called separation between the RNC and the NPF, in his words, as a "fiction."
In an effort to learn more from Mr. Baroody this committee served him with a subpoena, and a few weeks ago, we asked him a series of questions under oath. Mr. Baroody refused to say anything about the letter. In fact, on more than 100 occasions, his attorney instructed him not to answer the questions posed to him by this committee, even questions directly asking about foreign money at NPF.
I should note, Mr. Chairman, that we do appreciate very much the order you reached in the issues instructing Mr. Baroody to answer the questions we believed to be within the scope of this investigation. It was a tough statement. We appreciate it. You were right to put it out.
Other former officials of the NPF and the Republican Party have also withheld information from this committee, seriously undermining our efforts to uncover the complete story. And we hope they'll be more forthcoming in the weeks ahead.
However, even without the cooperation of those Republican witnesses, we have this letter and other documents that speak for themselves. The references to foreign money and the "fiction," as they say it, in their -- in quotes, the "fiction" of separation between the NPF and RNC, are right here in black and white.
Mr. Baroody's worst fears are realized shortly after he resigns when, at the request of Chairman Barbour of the RNC, foreign money is used to guarantee a loan to NPF, to the ultimate benefit of the RNC.
Young Brothers Development Corporation, a foreign-owned company based in Hong Kong, directs a $2.1 million loan through its Florida-based Shell Corporation, Young Brothers USA. The Florida company's only assets come straight from Hong Kong. The Shell organization provides the loan guarantee to the National Policy Forum, an organization which is an arm of the Republican National Committee.
The National Policy Forum and its chairman, Haley Barbour, immediately funnels $1.6 million to the Republican National Committee and its chairman, Haley Barbour.
As you can see here, corporate money that started in Hong Kong is spread out all over the country by the RNC to help pay for elections in 1994. This slide shows that foreign money helps make a major difference in November when the Republicans do capture the Congress for the first time in 40 years. In states where the money flowed right before the election, Republicans won congressional races.
Now that, of course, could be a happy ending, at least for Haley Barbour and the RNC. But the story doesn't end there. In fact, in some ways it's just beginning.
After using Young Brothers money to fund the Republican victory, Mr. Barbour decides that the NPF should just keep the money. He asks Young for forgiveness. Young says no. NPF fails to make the next payment on the loan guaranteed by Young Brothers, perhaps to test Mr. Young's resolve. Young says "pay up."
In '95, Barbour travels to Hong Kong to visit Ambrous Young on his yacht and again plead for forgiveness, and Young says no. A few more months pass. Haley Barbour and Ambrous Young travel to China together, meet with Chinese foreign minister. Barbour is still pressing for forgiveness; Young is holding firm.
Spring of '96, when the Dole campaign is strapped for cash, the RNC desperately needs money, and the Republicans look like they might lose Congress if they -- that they have held for only two years, and the NFP defaults; they just won't pay. Needless to say, the RNC won't pay either, despite Haley Barbour's early assurances to Ambrous Young.
Angry letters are exchanged between lawyers. Richard Richards, the former chairman of the RNC, tries 10 times to call the current chairman, Haley Barbour. Mr. Barbour won't talk to him.
On September 17th, Dick Richards writes to Chairman Barbour a letter which recounts the history of the loan. He says, quote, "I have recently heard from Mr. Young in Hong Kong, and needless to say, he's somewhat distressed about the non-payment by the Forum. Just prior to the election of 1994, I was asked by Fred Volkansic to help facilitate a loan in excess of $2 million to assist -- to help pick up 60 targeted House seats. Funds were transferred from Hong Kong to Young Brothers, USA, a Florida Corporation of which I am the president. Shortly after the loan was made, you journeyed to Hong Kong and approached Mr. Young for the first time about the question of forgiveness of the loan. There cannot be any dispute that this was a loan. Mr. Young made it in good faith to assist you in capturing some targeted congressional seats." |
