To: Lalit Jain who wrote (33685 ) 5/12/1999 3:17:00 PM From: Alex Respond to of 116764
5/12/99 - Eizenstat May Be No. 2 at Treasury <Picture> WASHINGTON, May 12, 1999 (AP Online via COMTEX) -- As a top economic affairs aide at the State Department, Stuart Eizenstat has been handed his share of controversial issues -- investment in Cuba by U.S. allies, Nazi gold, the use of sanctions as a tool of foreign policy. Now he is moving on to the No. 2 slot at the Treasury Department after two hectic years at State. Pending Senate confirmation, Eizenstat will replace Deputy Secretary Larry Summers, who was tapped to succeed outgoing Treasury Secretary Robert Rubin. The Treasury job will the fourth senior position for Eizenstat in the Clinton administration. In addition to his service at State, he was undersecretary of commerce for international trade and U.S. ambassador to the European Union. Eizenstat, 56, first came to national attention in the late 1970s as President Carter"s chief adviser for domestic policy. One of his most difficult assignments as undersecretary of state was to explain to allied countries legislation approved in 1996 designed to punish foreign firms that invested in property in Cuba that had been confiscated from U.S. companies. In Mexico, protesters tried to pelt Eizenstat with eggs. Everywhere Eizenstat went, Europe included, the reception was cool, prompting his State Department colleagues to facetiously dub the mission a ""victory tour."" ""It was sort of a boiling cauldron to get into,"" Eizenstat observed at the time. Issues left over from the Nazi era have consumed much of Eizenstat"s considerable energies at State. Indeed, when worked leaked out Wednesday of his impending reassignment to Treasury, he was in discussions with German officials on an effort to settle claims by former Nazi-era slave laborers. Earlier, Eizenstat was the point man in an investigation into outside support for the Nazi military during World War II. The report concluded that trade with neutral nations helped feed the German war machine for years. Jim Desler, who worked for Eizenstat at Commerce and State, recalled Wednesday the ""tenacity and indefatigable perseverance"" with which Eizenstat fought for an international climate change treaty in Tokyo in 1997. During three days of talks, Eizenstat may have had four hours sleep, Desler said. Despite the pressure of the difficult assignments handed him, Desler said he never saw him lose his temper and always treated his staff with kindness. ""He"s perhaps the most gracious boss I"ve ever worked for,"" Desler said. Copyright 1999 Associated Press, All rights reserved. -0- By GEORGE GEDDA