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Octafish

(55,745 posts)
4. James Baker is the guy to ask for the missing meeting minutes...
Wed Jul 15, 2015, 11:50 AM
Jul 2015


Saving the Saudis

Just days after 9/11, wealthy Saudi Arabians, including members of the bin Laden family, were whisked out of the U.S. on private jets. No one will admit to clearing the flights, and the passengers weren’t questioned. Did the Bush family’s long relationship with the Saudis help make it happen?

BY CRAIG UNGER
Vanity Fair, October 2003

EXCERPT...

Many of the Saudis acknowledge that they contributed to the charities in question but say they had no knowledge that the money would end up in the hands of al-Qaeda. “The biggest problem we have with Saudi charities is poor and sloppy management,” says Nail al-Jubeir.

The plaintiffs’ attorneys do not consider that a satisfactory answer. In addition, they believe that, by interviewing the bin Ladens and members of the royal family before they left the country, the government could have answered some key questions. “They should have been asked whether they had contacts or knew of any other Saudi contacts with Osama bin Laden,” says Allan Gerson, co—lead counsel for the plaintiffs in the case. “What did they know about the financing of al-Qaeda? What did they know about the use of charitable institutions in the U.S. and elsewhere as conduits for terrorism financing? Why was the Saudi government not responsive to U.S. pleas in 1999 and 2000 that they stop turning a blind eye to terrorist financing through Saudi banks and charities?”

All of which leads to the question of who made the decision to let the Saudis go. And why? Could the long-standing relationship between the Saudis and the Bush family have influenced the administration?

National-security experts such as Richard Clarke find that suggestion dubious. “Prince Bandar played a very key role during the first Gulf War,” Clarke says. “He was very close to the Bush family. But I don’t think it’s accurate to say that he plays that role now. There’s a realization that we have to work with the government we’ve got in Saudi Arabia. The alternatives could be far worse. The most likely replacement to the House of Saud is likely to be more hostile—in fact, extremely hostile—to the U.S. That’s probably the reason the administration treats it the way it does—not any personal relationship.” With the war on terror getting under way, the U.S. wanted Saudi cooperation, and repatriation was clearly a high priority at the highest levels of the kingdom.

Still, the Bush-Saudi relationship raises serious questions, if only because it is so extraordinary for two presidents to share such a long and rich personal history with any foreign power, much less one that is both as vital to U.S. economic interests and as troublesome as Saudi Arabia.

It began in the mid-70s, when two young Saudi billionaires—Salem bin Laden, Osama’s older brother and the head of the Saudi Binladin Group, and Khalid bin Mahfouz, a billionaire Saudi banker—first came to Texas hoping to forge political relationships. To represent their American interests, they chose a Houston businessman named James R. Bath, who knew George W. Bush from the Texas Air National Guard. Bath invested $50,000 in Bush’s new oil company, Arbusto. He denies, however, that his investment represented the Saudis’ interests.

In 1986, George W. Bush sold the latest incarnation of his failing oil company to Harken Energy, an independent Texas oil company that was struggling itself, and took a seat on its board of directors. By then, Khalid bin Mahfouz had become the largest stockholder in the Bank of Commerce & Credit International, or B.C.C.I., an international bank which financed drug dealers, terrorists, and covert operations and which became known as the most corrupt financial institution in history.

Once Bush was with Harken, a phantom courtship by Khalid bin Mahfouz and B.C.C.I. began. Neither George W. Bush nor Harken ever had any direct contact with bin Mahfouz or B.C.C.I. Yet once Bush took his seat on the board, wonderful things started to happen to Harken—new investments, unexpected sources of financing, serendipitous drilling rights. Among those with links to B.C.C.I. who came to Harken’s aid were the Arkansas investment bank Stephens Inc., Saudi investor Sheik Abdullah Bakhsh, and the Emir of Bahrain, who unexpectedly awarded Harken exclusive offshore drilling rights. In 1991, a Wall Street Journal investigation into Harken’s B.C.C.I. ties concluded, “The number of B.C.C.I.-connected people who had dealings with Harken—all since George W. Bush came on board—likewise raises the question of whether they mask an effort to cozy up to a presidential son.”

After George H. W. Bush and James Baker returned to the private sector in 1993, they finally began to reap the benefits of their friendship with the Saudis. That year, Baker took a position as senior counselor with the Carlyle Group, the $16 billion private-equity firm. Two years later, Bush signed on as senior adviser. In 1998, former British prime minister John Major joined the firm as well.

On several occasions, Bush, Baker, and Major flew to Saudi Arabia with Carlyle executives to meet with and speak before members of the royal family and wealthy businessmen such as the bin Ladens and the bin Mahfouzes, Saudi Arabia’s richest banking family.

As world leaders who had defended the Saudis during the Gulf War, Bush, Baker, and Major had the potential to be star rainmakers for Carlyle, and the firm’s practices allowed them to do so without sullying their hands by asking for money directly. “Bush’s speeches are about what it’s like to be a former president, and what it’s like to be the father of a president,” says Carlyle C.E.O. David Rubenstein. “He doesn’t talk about Carlyle or solicit investors.” After Bush’s speeches, Rubenstein and his fund-raising team would come in for the money. “Carlyle wanted to open up doors,” one observer told The Independent, “and they bring in Bush and Major, who saved the Saudis’ ass in the Gulf War. If you got these guys coming in ... those companies are going to have it pretty good.” Rubenstein says Bush and Baker were not given special treatment in Saudi Arabia. “They were well received there, as they are throughout the world.”

CONTINUED...

http://www.vanityfair.com/news/2003/10/saving-the-saudis-200310

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