The Profiteers

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The Profiteers Page 46

by Sally Denton


  “Nuclear Energy Agreement for Cooperation with Iran.” December 6, 1974. “Iraqi Illegal Use of Chemical Weapons.” Department of State Briefing Paper. November 16, 1984. National Security Archive, Declassified April 6, 2007.

  “Nuclear Proliferation. Failed Efforts to Curtail Iraq’s Nuclear Weapons Program.” U.S. House of Representatives. Hearing Before the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce. 102nd Cong., 1st Sess. April 24, 1991. “Modernizing the Nuclear Security Enterprise.”

  “Observations on DOE’s Management Challenges and Steps Taken to Address Them.” Testimony Before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, House of Representatives. U.S. Government Accountability Office. July 24, 2013.

  “Old Men’s Oil Wars.” Representative Marcy Kaptur on the floor of Congress. Congressional Record. May 8, 2003.

  “Oversight of the Private Sector Activities of the Overseas Private Investment Corporation and the Agency for International Development’s Bureau for Private Enterprise.” Hearing Before the Subcommittee on International Economic Policy and Trade of the Committee on Foreign Affairs. U.S. House of Representatives. 99th Cong., 2nd Sess. September 10, 1986.

  “Public Statements of Caspar W. Weinberger, Secretary of Defense.” U.S. Library of Congress. Vol. IV, 1983.

  “Remarks by President Barack Obama.” Hradcany Square. Prague, Czech Republic. April 5, 2009. www.whitehouse.gov/the_press_office/Remarks-By-President-Barack-Obama-In-Prague-As-Delivered.

  “Renewing OPIC and Reviewing Its Role in Support of Key U.S. Objectives.” U.S. Congress. Hearing Before the Committee on International Relations. 108th Cong., 1st Sess. June 10, 2003.

  Report of Independent Counsel In Re Edwin Meese, III. Washington, DC, July 5, 1988. U.S. Government Printing Office.

  “Review of Bechtel’s Spending Under Its Phase II Iraq Reconstruction Contract.” Office of the Special Inspector General for Iraq Reconstruction. SIGIR-07-009. July 24, 2007.

  “Search of Files for Materials Relevant to Assassination Plans.” Commission on CIA Activities Within the United States. Memorandum to the White House. An examination of the personal files of John McCone from November 29, 1961, through December 31, 1964 . . . “and the files relating to MONGOOSE and ZRRIFLE relevant to plans to assassinate Castro.” May 1, 1975. Declassified June 17, 1996. Reproduced in Declassified Documents Reference System. Farmington Hills, Mich.: Gale, 2013.

  “Special Activities.” Memorandum for Mr. William E. Colby. June 1, 1973.

  “Structure of Corporate Concentration: Institutional Shareholders and Interlocking Directorates Among Major U.S. Corporations. A Staff Study.” U.S. Senate. Committee on Government Affairs. Vol. 1. December 1980. “Summary of Facts and Conclusions.” The Independent Prosecutor’s Report on Meese. (Excerpt from the McKay Report published by New York Times. July 19, 1988.)

  Supplemental Declaration of Caspar W. Weinberger, Secretary of Defense. United States of America v. Jonathan Jay Pollard. U.S. District Court for the District of Columbia. Criminal No. 86-0207. March 3, 1987.

  “The Atomic Energy Commission.” By Alice Buck. U.S. Department of Energy, 1983. http://energy.gov/sites/prod/files/AECHistory.pdf.

  “The Banca Nazionale del Lavoro (BNL) Scandal and the Department of Agriculture’s Commodity Credit Corporation (CCC) Program for Iraq. Parts I and II.” U.S. Congress. Hearing Before the Committee on Banking, Finance and Urban Affairs. House of Representatives. 102nd Cong., 2nd Sess. May 21, 1992.

  “The Foreign Trade Practices Act.” U.S. Congress. Hearings before the Subcommittee on International Economic Policy and Trade of the Committee on Foreign Affairs. 98th Cong., 1st Sess. April 18, 25; July 12; October 6, 1983.

  “The Intelligence Community’s Involvement in the Banca Nazionale Del Lavoro (BNL) Affair.” Report Prepared by the Staff of the Select Committee on Intelligence. U.S. Senate. 103rd Cong., 1st Sess. February 1993.

  “The International Petroleum Cartel, the Iranian Consortium and U.S. National Security.” U.S. Senate. Prepared for the Use of Subcommittee on Multinational Corporations of the Committee on Foreign Relations. February 21, 1974.

  “The International Telephone and Telegraph Company and Chile, 1970–71.” U.S. Senate. Report to the Committee on Foreign Relations by the Subcommittee on Multinational Corporations. June 21, 1973.

  “The Jonathan Jay Pollard Espionage Case: A Damage Assessment.” Prepared by the Foreign Denial and Deception Analysis Committee. October 30, 1987. Released by the CIA in 2006. National Security Archive. Electronic Briefing Book. Posted December 14, 2012. Updated January 9, 2013. http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB407/.

  “The New START Treaty.” Testimony of Dr. Michael R. Anastasio, Laboratory Director, Los Alamos National Laboratory. U.S. Senate Committee on Foreign Relations. July 15, 2010.

  “The Overseas Private Investment Corporation’s Investment Funds Program.” Briefing Report to the Chairman and the Ranking Minority Member, Subcommittee on Foreign Operations, Committee on Appropriations. U.S. Senate. Government Accountability Office. May 2000.

  “The U.S. Policy Regarding United Nations Inspections of Iraqi Chemical Sites.” Joint Hearing Before the Committee on Foreign Relations and Committee on Armed Services. U.S. Senate. 105th Cong., 2nd Sess. September 3, 1998.

  “The Weapons of Mass Destruction Program of Iraq.” U.S. Senate. Hearing Before the Subcommittee on Emerging Threats and Capabilities of the Committee on Armed Services. 107th Cong., 2nd Sess. February 27, 2002.

  “U.N. Inspections of Iraq’s Weapons of Mass Destruction Programs: Has Saddam Won?” Hearing Before the Committee on International Relations. U.S. House of Representatives. 106th Cong., 2nd Sess. September 26, 2000.

  “United States Export Policy Toward Iraq Prior to Iraq’s Invasion of Kuwait. Did U.S. Exports Aid Iraq’s Military Capabilities and Did the Administration Accurately Disclose Its Licensing of Dual-Use Exports to Iraq?” U.S. Senate. Hearing Before the Committee on Banking, Housing, and Urban Affairs. October 27, 1992.

  “U.S. Chemical and Biological Warfare–Related Dual Use Exports to Iraq and Their Possible Impact on the Health Consequences of the Persian Gulf War.” A Report of Chairman Donald W. Riegle, Jr., and Ranking Member Alfonse M. D’Amato of the Committee on Banking, Housing and Urban Affairs with Respect to Export Administration. U.S. Senate. May 25, 1994. Telegram from Secretary of State, Washington, DC, to USINT Baghdad.

  “U.S. Chemical Shipment to Iraq.” March 4, 1984. Excised, September 18, 1996. Telegram from Secretary of State, Washington, DC, to USINT Baghdad.

  “U.S. Oil Companies and the Arab Oil Embargo: The International Allocation of Constricted Supplies.” U.S. Senate. Prepared for the Use of Subcommittee on Multinational Corporations of the Committee on Foreign Relations by the Federal Energy Administration’s Office of International Energy Affairs. January 27, 1975.

  Walsh, Lawrence E. Iran/Contra: The Final Report. New York: Times Books, 1994.

  “Waste, Fraud, and Abuse in Hurricane Katrina Contracts.” U.S. House of Representatives. Prepared for Committee on Government Reform—Minority Staff Special Investigations Division. August 2006.

  “White House Efforts to Thwart Congressional Investigations of Pre-War Iraq Policy: The Case of the Rostow Gang.” U.S. Congress. Hearing Before the Committee on Banking, Finance and Urban Affairs. 102nd Cong., 2nd Sess. May 29, 1992.

  INDEX

  A note about the index: The pages referenced in this index refer to the page numbers in the print edition. Clicking on a page number will take you to the ebook location that corresponds to the beginning of that page in the print edition. For a comprehensive list of locations of any word or phrase, use your reading system’s search function.

  ABC News, 164, 175, 198, 233

  Abu Dhabi projects, United Arab Emirates, 304

  Adelson, Sheldon, 299, 300

  AEC. See Atomic Energy Commission

  Afghanistan, 2
60

  Aguas del Tunari, 222

  Ahmadinejad, Mahmoud, 281

  airport construction projects, 5, 9, 10, 58, 60, 61, 122, 127, 208, 211, 235, 304, 305

  Aitken, Robert, 269

  Albania, 304, 306

  Alexander, Donald A., 261

  Algeria, 9, 78, 95, 101, 102, 103, 123, 305

  Allard, Wayne, 171

  Allende, Salvador, 97, 98, 118

  Al Qaeda, 3, 228, 231, 242

  American Enterprise Institute, 239, 309

  American exceptionalism, 24, 74

  American Federation of Labor (AFL), 41

  Americans for Tax Reform, 11

  Anderson, Eric, 295

  Anderson, Jack, 79, 80, 82, 87, 97, 318, 329n80

  Anti-Defamation League (ADL), 125, 126

  Anti-Terrorist Alert Center (ATAC), 181

  antiwar protests, 84, 126, 267

  Aqaba pipeline proposal

  investigation of, 191

  Iran-Contra affair and, 191–92

  Rumsfeld as Shultz’s envoy to Saddam to lobby for, 168–71, 172–73, 188

  Saddam’s rejection of, 192, 194, 197, 200–01, 202, 213

  Arabian American Oil Co. (Aramco), 53, 62, 63, 131

  Arab League, 125, 127

  Arab Spring, 5, 96

  Arco, Idaho, National Reactor Testing Station, 10

  Argentina, 98, 225

  Armour Research Foundation, 84

  Asian Development Bank, 112

  Aspin, Les, 102, 161

  Associated General Contractors of America, 27

  Associated Press, 147, 271

  Association of Southeast Asian Nations (ASEAN), 209

  Athens, Greece, subway system, 208

  Atlantic (magazine), 280

  Atomic Energy Commission (AEC), 68, 70–71, 72, 74, 104, 105, 120, 153, 154, 156, 157

  Augustine, Norman, 292

  Aziz, Tariq, 169

  B-1 bombers, 160

  Bacevich, Andrew J., 79

  Baer, Robert, 99, 113

  Baker, Howard, 131

  Balfour, Guthrie and Company, 56

  Balkan Investigative Reporting Network, 307

  Banca Nazionale del Lavoro (BNL), 197–99, 200, 201

  Barcelona, Summer Olympics (1992) in, 208

  Barlett, Donald L., 244

  Barraza, Marian, 264–65

  Baum, Dan, 233

  Bay Area Rapid Transit (BART) system, California, 9, 87

  Bay of Pigs invasion, Cuba, 78

  Beard, Susan, 294

  Becon Construction, 135, 204

  Bechtel, Alice Elizabeth, 8, 23, 43–44

  Bechtel, Brendan

  background of, 295

  as Bechtel head, 9, 295–96, 304

  Bechtel, Clara Alice West, 20, 21, 43, 45–46

  Bechtel, Elizabeth Bentz, 19

  Bechtel, Elizabeth (“Betty”) Hogan, 92, 93

  Bechtel, Gary, 93, 204, 207

  Bechtel, John Moyer, 19

  Bechtel, Kenneth, 8, 21, 22, 45, 53, 117

  Bechtel, Laura Adeline Peart, 46, 55

  Bechtel, Lauren, 93, 204–05

  Bechtel, Nonie, 93, 205

  Bechtel, Riley P., 93

  ASEAN countries and, 209–10

  background of, 205

  Bechtel Enterprises Holdings (BEn) and, 218–19, 221, 225, 227

  as Bechtel head, 9, 192, 197, 200, 204

  Bechtel’s image and, 213

  Bechtel stock value decline and, 226–28

  biotech company Theranos and, 305

  Boston’s Big Dig project and, 207, 208, 221–22

  business philosophy of, 209

  Clinton administration and, 214–15

  criticism of, 223–24

  diversification plan of, 217, 219

  employees as hostages in Iraq and, after US invasion, 202

  Export Council membership of, 229

  hurricane Katrina cleanup and, 246, 247

  international business sought by, 208–09

  Iraq projects and, 192, 197, 200

  Kuwait reconstruction and, 202–03

  organizational changes by, 204–05, 212–13, 217–18, 219

  partnerships and, 220–21

  planetary exploration and, 295

  privatization and, 202–03, 216–17

  son Brendan as successor to, 9, 295

  success of, 211

  telecom and Internet start-ups and, 221, 226

  wealth of, 9, 262

  Bechtel, Shana, 93, 204

  Bechtel, Stephen Davison (“Steve Sr.”)

  ant-Communist views of, 64, 75, 84

  anti-Jewish sentiment of, 124–25

  as Bechtel head, 8, 44, 45, 50

  Bechtel-McCone Corporation formed by, 49–50

  birth and childhood of, 20, 21, 22, 45–46

  business philosophy of, 49, 53, 59, 74, 85, 86, 109

  business reputation of, 47, 95

  as business visionary, 46–47, 49

  as chief administrator of Six Companies, 47

  Casey and, 132

  Cold War arms race and, 70

  college traffic accident and, 46

  Colley’s murder in Iraq and, 77

  cost-plus model of business contract invented by, 49, 262

  death of, 204

  difference between father and, 47

  energy industry as focus of, 46–47, 48–49

  Export-Import Bank position of, 95, 101, 102

  father’s death and, 44

  government contacts of, 58, 68, 74, 105

  government regulation and, 149

  growth of Bechtel under, 86

  Hoover Dam construction and, 6, 38, 48

  intelligence community and, 8, 61, 64, 65, 75–76

  international business sought by, 53, 58, 59, 85, 208–09, 215

  King Faisal of Iraq and, 5

  marriage and family of, 46, 204

  McCone’s bond with, 48, 49–50, 68, 82

  military contracts and, 47–48, 83

  military-industrial complex and, 83

  Nixon and, 75, 95, 101

  nuclear energy and, 70, 71

  oil industry and, 48–49, 58, 59, 60, 62, 63, 124

  Pacific Rim strategy of, 84

  personality of, 45, 49–50

  relationship between US presidents and, 8

  Saudi Arabian projects and, 58, 59–62, 63, 75, 124, 209

  Shultz and, 109, 112, 129, 135

  son Steve Jr. as successor to, 8, 86

  son Steve Jr. compared to, 91–92

  son Steve Jr.’s relationship with, 93

  SRI’s research and, 84

  stock investments of, 53–54, 59, 219

  turnkey contract used by, 49

  wartiime experience of, 46, 47

  Weinberger and, 117

  Bechtel, Steve Jr., 11–12

  antilabor stance of, 87

  background and education of, 86, 92–93

  as Bechtel head, 8–9, 86, 91–92, 93–94, 138, 143

  business philosophy of, 91–92, 97, 104–05, 150, 159, 212, 213, 220, 309

  Casey and, 132

  Connally’s campaign against Reagan and, 130–32

  Dad Bechtel’s biography as a self-made man embraced by, 11–12

  energy industry as focus of, 86–87

  father Steve Sr. compared to, 91–92

  father Steve Sr.’s relationship with, 93

  government contacts of, 99, 104–05

  Iran-Contra affair and, 192

  Iraq pipeline project and, 192

  Jubail new city project, Saudi Arabia, and, 122–23

  Libya and, 94

  marriage and children of, 92, 93, 197, 204

  Middle East projects and, 87

  multinational approach to projects under, 151–52, 153

  Nixon and, 87–88, 89, 90, 104, 143

  nuclear plant contracts under, 151

  nuclear power safety and, 149–50

  persona
lity of, 86, 91, 92, 212

  Reagan and, 130, 133, 135, 143, 150, 152, 151, 158–59, 214

  rebuff of an interview request by, 11

  retirement of, 204

  revolving door with Washington and, 148–49, 152, 158–59

  Shultz and, 110, 113–14, 121–22, 127, 129, 135, 143, 148

  son Riley as successor to, 9, 192, 197, 200, 204

  stock ownership by, 227

  Treasury Department position of, 95

  wealth of, 262

  Weinberger and, 117, 119, 148

  Bechtel, Warren Augustine (“Dad”)

  background and childhood of, 19–20

  birth of the modern Bechtel company and, 22, 23

  business reputation of, 25–26, 38, 42, 47

  cattle business and, 20, 23

  children and family life of, 20, 21, 22, 23–24, 45–46

  death of, 8, 43–44

  difference between son Steve Sr. and, 47

  early construction work of, 19, 20, 21, 22

  first railroad subcontract of, 22–23

  founding of Bechtel by, 8

  Hoover Dam project and, 26–27, 38, 40, 41, 42

  Horatio Alger–like biography of being a self-made man used for, 11–12, 24

  marriage of, 20

  move west by, 20–22

  new western industrialism and, 12, 22–23

  oil and gas construction contracts of, 26

  partners of, 22–23, 26

  railroad construction work of, 19, 20–23, 24, 26, 47, 217

  road and highway construction by, 24–26, 46, 53, 60, 61, 122, 306–07, 308

  son Steve Sr. as successor to, 8, 44, 45

  Southern Pacific Railroad job of, 20, 21

  Soviet visit of, 42–44

  success of, 23–24, 26, 45

  Bechtel, Warren Jr., 8, 20, 21, 22, 45

  Bechtel (Bechtel corporation in general)

  American exceptionalism belief of, 24, 74

  antiregulatory, antigovernment stance of, 11

  Arab boycott of trade with Israel and, 125–27, 128–29, 146

  bad publicity for, 120–21, 123–24, 127, 147–49, 213

  as company that can “build anything, any place, any time,” 6

  conflict-of-interest questions about, 72, 102, 103, 147–49, 173, 192, 199, 207, 237, 307

  cost-plus model of business contract used by, 49, 63, 233, 262

  criminal cases connected with employees of, 120

  Dad Bechtel’s first subcontract and birth of, 22

 

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