[misc.activism.progressive] VILLAGE VOICE ON ROBERT GATES

christic@labrea.Stanford.EDU (06/13/91)

/* Written  2:27 pm  Jun 12, 1991 by christic in cdp:christic.news */
/* ---------- "VILLAGE VOICE ON ROBERT GATES" ---------- */
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SUMMARY OF VILLAGE VOICE INVESTIGATION OF ROBERT GATES

Christic Institute, Wednesday, June 12, 1991

The Senate will probably schedule hearings after the July 4 recess
on the nomination of Robert Gates to succeed William Webster as
C.I.A. director. The following is a summary, with some comments, of
the article by Murray Waas in the June 4, 1991, issue of the
Village Voice. The Voice's investigation suggests Gates supported
sales of military technology to Iraq during Saddam Hussein's
military buildup before the invasion of Kuwait. Gates was deputy
national security adviser to President Bush at the time.

1. Gates vetoed objections raised by other Administration officials
who opposed United States food credits program for Iran. Subsequent
investigation revealed that funds from the program were used to
purchase weapons.

2. In his capacity as deputy national security adviser, Gates
rejected proposals that the Bush Administration restrict ``dual-
use'' exports of technology and manufactured goods with potential
military uses. ``As a result of Gates' decision, the Bush
Administration ended up selling Saddam tens of millions of dollars
in high-technology goods that were used to help develop his
chemical and biological warfare capabilities and his advanced
ballistic missile program,'' Waas reported in the Voice. 

3. During 1987 hearings on Gates' nomination to succeed the late
William Casey as C.I.A. director, Gates ``gave incomplete and
misleading testimony'' about his knowledge of the use of profits
from the secret sale of military supplies to Iran as a source of
illegal funding for the contras. The hearings ended after four days
when Gates withdrew his name from consideration. ``Gates reported
directly to Casey during the early years of the Reagan-Bush
Administration and helped the late [C.I.A. director] prepare
congressional testimony that was later shown to be deliberately
misleading,'' Waas wrote.


1. The Agriculture credits program

Between 1983 and 1990 the Reagan and Bush Administrations provided
more than $5.5 billion in loan guarantees for the purchase of farm
products from the United States. ``These U.S. government loan
guarantees were critical to the survival of Saddam's regime in the
years after the Iran-Iraq war,'' Waas reported. ``Not only were
they used to feed the Iraqi people, they also freed up Iraq's
reservoir of foreign exchange to purchase military technology from
around the world, helping to build up what would ultimately become
the world's fourth largest military arsenal.''

In August 1989--the first year of President Bush's term--the
Agriculture Department recommended $1 billion in new farm credits
for the Iraqi regime. But other agencies were opposed, including
the Federal Reserve Board, the Treasury Department and the Office
of Management and Budget (OMB). Iraq now owed tens of billions of
dollars to its creditors, and there was little hope it would ever
repay its U.S. loans.

The opposition was overruled by the President's National Advisory
Council (NAC) on Nov. 8, 1989. By now a report was circulating
inside the Federal Reserve Board warning of corruption in Iraq's
management of the program. In February 1990 an internal Agriculture
Department memo, later obtained by the Voice, stressed Iraq's
miserable human rights record and allegations that Iraq was
misusing the U.S. funds to buy weapons. ``In the worst case
scenario, investigators would find a direct link to financing Iraqi
military expenditures,'' the memo said.

At the time Gates was chair of the ``Deputies Committee,'' an elite
group that supervised the National Advisory Council. Thanks to this
post Gates had become ``a bureaucratic powerhouse in the Bush
Administration,'' Waas wrote. 

On April 16, 1990, the Deputies Committee met to review the loan
program. Gates chaired the meeting. Objections were raised once
again to the loan program and again were overruled. According to
the Voice's sources, Gates backed the program during the meeting.


2. Sale of ``dual-use'' technology to Iraq

The subject of ``dual-use'' sales to Iraq was also raised at the
April 16 meeting chaired by Gates. Dennis Kloske, then Commerce
undersecretary for export management, called during the meeting for
new restrictions on dual-use exports. He proposed a number of
options: a total economic embargo against Iraq, stricter export
controls or specific limits on technology that could be used for
ballistic missiles. But no policy change resulted. ``One official
present at the meeting recalls Gates insisting that `they weren't
going to have a policy that singled out Iraq.'''

Between 1985 and 1990, both the Reagan and Bush Administrations
approved 273 export licenses for the delivery to Iraq of more than
$782 million worth of technology and goods with potential military
applications. The list included technology that could have been
used for Iraq's SCUD missile program and components for Saddam's
biological and chemical weapon industry. The shipments--which were
routed through Jordan, Egypt and Kuwait--violated United States law
and the Administration's official policy. Gates made decisions that
assured this ``tilt'' toward Iraq continued after President Bush
took office.

On June 8, 1990, Kloske gave Gates a written proposal that the Bush
Administration control exports of missile technology to Iraq. The
proposal was rejected. A final attempt by Kloske in December 1990
to restrict export licenses to Jordan for materiel with potential
military use that could be transferred to Iraq was also overruled
by Gates, the Voice said.


3. Did Gates mislead Congress about his knowledge of the Iran-
contra affair?

According to the Voice, the evidence contradicts Gates' claim that
he knew nothing about the illegal White House resupply operation
for the contras. 

The Administration officially admitted on Nov. 25, 1986 that
profits from Iranian arms sales had been diverted to the contras.
During confirmation hearings for his nomination as C.I.A. director
Gates said that reports that reached him before the official
disclosure of the affair were ``extraordinarily flimsy.'' In any
event, he said he did not hear about the diversion until Oct. 1,
1986. But the Voice found evidence that Gates had been briefed on
the operation much earlier in 1986 and as early as 1985 was
receiving intelligence reports that secret arms sales to Iraq were
producing huge profits.

Richard Kerr, Gates' successor as the C.I.A.'s deputy director of
intelligence, says he told Gates in August 1986 about suspicions
that the proceeds from arms sales to Iran were being diverted to
the contras. Gates later told the C.I.A.'s inspector general, who
was conducting an internal investigation of the Iran-contra affair,
that he couldn't remember the conversation with Kerr.

But Gates does admit that on Oct. 1, 1986, C.I.A. national
intelligence officer Charles Allen reported to him about his
suspicions about the diversion. In his confirmation testimony Gates
said he was ``troubled'' by the report from Allen, but that ``my
first reaction was to tell Mr. Allen that I didn't want to hear any
more about it. That I didn't want to hear anything about funding
for the contras.''

Even if Gates was not directly involved in the illegal contra
resupply operation, he was briefed at least twice about suspicions
the operation existed by two senior C.I.A. officials. After both
meetings he took no steps to investigate further and has admitted
he preferred not ``to hear anything'' about illegal funding for the
contras. Will Gates, as C.I.A. director, tell his subordinates that
he would rather hear nothing about future wrongdoing or attempts to
conceal secret operations from Congress?

Even earlier than his meetings with Kerr and Allen, however, the
Voice says Gates routinely received ``intercepts'' from the
National Security Agency (N.S.A.) on huge profits from the sale of
weapons to Iran. Gates was on the distribution list for N.S.A.
intercepts in 1985 and 1986, a fact he did not mention during his
confirmation hearing. The existence of the reports was not
disclosed until the Oliver North trial more than three years later.
The content of the reports was summarized by the Federal judge who
presided over the Poindexter trial: ``The intelligence reports in
1986 contained the following facts: the precise amounts the Iranian
[middlemen in the arms sales] were being charged for the U.S. arms
that they received as part of the Iran initiative; that the [first]
Iranian [middleman] complained that they were being charged six
times more than the prices on a 1985 U.S. government price list
that they had obtained.''

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