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Profile: Export-Import Bank

Export-Import Bank was a participant or observer in the following events:

Richard Murphy.Richard Murphy. [Source: Richard W Murphy.org]Assistant Secretary of State Richard Murphy writes a potentially explosive classified memo about arming Iraq. Murphy, along with his boss George Shultz and Defense Secretary Caspar Weinberger, are strong proponents of supporting Iraq in its war with Iran (National Security Adviser Robert McFarlane and two of his staffers, Howard Teicher and Oliver North, support arming Iran; the argument is causing deep divides within the administration). Murphy’s memo is so sensitive that its recipients are ordered to destroy it and to keep records of its destruction. Murphy suggests that the US can arm Iraq with “dual use” items—nominally civilian items that also have military use, such as heavy trucks, armored ambulances, and communications gear. Murphy also advocates helping Iraq build a new oil pipeline that will pump oil to the Jordanian port of Aqaba, on the Israeli border, which will allow Iraq to circumvent the Iranian blockade of Iraq’s Persian Gulf ports. Murphy also mentions the State Department’s desire to fund a number of projects in Iraq through the US Export-Import bank (EXIM), chaired by Reagan appointee William Draper. Murphy writes, in part: “Liberalizing export controls on Iraq: we are considering revising present policy to permit virtually all sales of non-munitions list dual use equipment to Iraq…. Egyptian tank sales: in the context of recommending ways to improve our relations with Iraq, Egypt has suggested that we provide it additional M-60 tanks beyond those we are now providing under FMS [Foreign Military Sales]. Egypt would use the additional M-60s to replace used Soviet T-63s, which it would sell to Iraq…. EXIM financing: [Under-Secretary of State Lawrence] Eagleburger has written EXIM director Draper to urge EXIM financing of US exports to and projects in Iraq…. Such major EXIM financing could boost Iraq’s credit rating, leading to increased commercial financing for Iraq. However, EXIM does not favor involvement in Iraq.” Murphy warns that Congress might begin sniffing around the State Department’s secret policy of arming Iraq. He advocates fobbing off Congress with background briefings that emphasize “our efforts to deter escalation and bring about a cessation of hostilities.” [New Yorker, 11/2/1992]

Entity Tags: Oliver North, Export-Import Bank, Caspar Weinberger, George Shultz, Lawrence Eagleburger, US Department of Defense, Robert C. McFarlane, William Draper, Howard Teicher, US Department of State, Richard W. Murphy

Timeline Tags: US-Iraq 1980s

Bechtel executive H.C. Clark notes in an interoffice memo that “the State Department has exerted strong pressure on Ex-Im [the US Export-Import Bank] to make additional credits available [in Iraq], including for this [Aqaba ] pipeline.” [Vallette, 3/24/2003]

Entity Tags: H.C. Clark, US Department of State, Export-Import Bank

Timeline Tags: US-Iraq 1980s

Frank Ricciardone, a US State Department desk officer, urges the Export-Import Bank to provide Iraq with short-term loans “for foreign relations purposes.” [Vallette, 3/24/2003]

Entity Tags: Frank Ricciardone, Export-Import Bank, US Department of State

Timeline Tags: US-Iraq 1980s

On June 12, Charles Hill, the executive secretary to Secretary of State George Shultz, sends a confidential memo to Vice President George Bush. The memo suggests that Bush telephone William Draper, the chairman of the US Export-Import Bank, and press for the bank to agree to finance the construction of an oil pipeline from Iraq into Aqaba, Jordan (see January 14, 1984). The bank had previously refused to extend any credit to Iraq for the pipeline, holding that the war-ravaged nation could not meet the bank’s legal requirement of providing a “reasonable assurance of repayment.” Bush went to Yale with Draper; that and his position in the White House makes him an ideal person to influence Draper. Bush is to use the “talking point” prepared for him, that the loan affects the US’s vital interests, and the US’s primary goal in the Iran-Iraq War is “to bring the war to a negotiated end in which neither belligerent is dominant.” The pipeline is key to accomplishing a negotiated peace, Bush is told to argue: “At present time, Iran is the intransigent party, unwilling to negotiate in part because it believes it can win in a war of attrition. We must therefore seek a means to bolster Iraq’s ability and resolve to withstand Iranian attacks as well as to convince Iran that continuing hostilities are useless.” Bush makes the call, and Draper immediately reverses his position on financing the pipeline. Because of an inability to obtain insurance, the pipeline will never be built, but Bush’s pressuring of Draper may be his first active role in the covert US policy of supporting Iraq. [New Yorker, 11/2/1992]

Entity Tags: William Draper, Export-Import Bank, George Herbert Walker Bush, Charles Hill

Timeline Tags: US-Iraq 1980s

The Export-Import Bank approves a preliminary commitment of $484.5 million in loan guarantees for the Iraq-Jordan Aqaba pipeline project (see Mid-June, 1984). This commitment will remain in effect until 1986. [Vallette, 3/24/2003]

Entity Tags: Export-Import Bank

Timeline Tags: US-Iraq 1980s

Several current and former top US officials—including Attorney General Edwin Meese; National Security Adviser Robert McFarlane; former Secretary of Energy, Secretary of Defense, and Director of the CIA James Schlesinger; and former Secretary of Interior; national security adviser, and deputy secretary of state Judge William B. Clark—attempt to make arrangements that will provide security and insurance for the proposed Iraq-Jordan Aqaba pipeline in order to obtain Iraqi approval for the project. They go to extraordinary lengths to satisfy the preconditions Iraq has set for the pipeline, including bribing Israeli Labor officials in exchange for assurances that Israel would not attack the pipeline and pushing the US government-backed Overseas Private Investment Fund and Citibank to provide a political-risk insurance fund with up to $400 million in coverage. Iraq and Jordan ultimately refuse the deal explaining that the plan “does not meet specific requirements of the Project and does not satisfy our objectives.” [Vallette, 3/24/2003]

Entity Tags: Robert C. McFarlane, Export-Import Bank, Edwin Meese, James R. Schlesinger, William B. Clark

Timeline Tags: US-Iraq 1980s

Dow Chemical sells $1.5 million of pesticides to Iraq. An Export-Import Bank official says in a memorandum that he can find “no reason” to prevent the sale. Pesticide components can be used to make chemical weapons. [Washington Post, 12/30/2002]

Entity Tags: Dow Chemical, Export-Import Bank

Timeline Tags: US-Iraq 1980s

President Bush waives Congressional restrictions on Iraq’s use of the US Export-Import Bank, ignoring evidence that Iraq is testing ballistic missiles and stealing technology for its nuclear weapons program (see September 1989). [New Yorker, 11/2/1992]

Entity Tags: Export-Import Bank, George Herbert Walker Bush

Timeline Tags: US-Iraq 1980s

Bob Kerrey.Bob Kerrey. [Source: US Congress]Bob Kerrey, the former Nebraska senator who also served as the ranking Democrat on the Senate Intelligence Committee, is appointed to the 9/11 Commission, replacing Max Cleland, who leaves the Commission to accept a position on the board of the Export-Import Bank. [Washington Post, 12/10/2003]
Criticism of Commission's Work - Just before resigning, Cleland called the Bush administration’s attempts to stonewall and “slow walk” the Commission a “national scandal.” He criticized the Commission for cutting a deal with the White House that compromised its access to information, and said: “I’m not going to be part of looking at information only partially. I’m not going to be part of just coming to quick conclusions. I’m not going to be part of political pressure to do this or not do that. I’m not going to be part of that. This is serious.” [Salon, 11/21/2003] Cleland will later add, “There was a desire not to uncover bad news, a desire to leave rocks unturned—both in the White House and, to a certain extent, on the leadership of the Commission.” [Shenon, 2008, pp. 161]
Some Democrats Unhappy - Kerrey is selected by Senate Minority Leader Tom Daschle (D-SD), but some Democrats are unhappy, as Kerrey has a reputation as a “contrarian” and critic of the Clinton administration. For example, when Kerrey and Bill Clinton were competing for the Democratic presidential nomination in 1992, Kerrey called Clinton an “unusually good liar.” Democrats are therefore worried that he will be critical of the Clinton administration’s treatment of terrorism, instead of criticizing the Bush administration. [Shenon, 2008, pp. 165]

Entity Tags: Bush administration (43), 9/11 Commission, Export-Import Bank, Bob Kerrey, Max Cleland

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

The progressive media watchdog organization Media Matters disproves a number of “factual” claims in a recent article by conservative author Dinesh D’Souza, who claims that President Obama is driven by “anticolonial” rage sparked by his alleged identification with his Kenyan father (see September 12, 2010). Media Matters notes the following:
bullet D’Souza claims that Obama “supported the conditional release” of Abdel Baset al-Megrahi, the “Lockerbie Bomber,” because he sees al-Megrahi as a “fellow anticolonialist,” when in reality the Obama administration informed Scotland that it opposed al-Megrahi’s release.
bullet D’Souza claims that Obama supports “oil drilling off the coast of Brazil but not in America,” in the form of a $2 billion Export-Import (Ex-Im) Bank loan to Brazil for exploratory drilling. In reality, the Obama administration had no say in the Ex-Im’s decision, and all five members of the bank’s board of directors were Bush administration appointees. (Forbes will conduct a fact-check after publication that garners harsh criticism from the bank over D’Souza’s misrepresentation of facts—see September 23-24, 2010.)
bullet D’Souza claims that Obama spent the first 17 years of his life “in Hawaii, Indonesia, and Pakistan.” D’Souza admits that he erred in this claim, as Obama never visited Pakistan until he was 20, and then only for three weeks.
bullet D’Souza claims that Obama’s June 2010 speech in response to the Gulf oil spill did not focus on cleanup strategies, but instead lambasted the US for its outsized oil consumption. While Obama did mention America’s disproportionate oil consumption, the central focus of his speech was the federal government’s response to the spill. (Forbes will correct this error and acknowledge that Obama’s speech indeed focused on cleaning up the oil spill—see September 23-24, 2010.)
bullet D’Souza claims that the 2009 economic stimulus (see November 18, 2008, February 10, 2009, February 13, 2009, February 17, 2009, February 23, 2009, February 28, 2009, March 9, 2009, April 9, 2009, April 16, 2009, June 9, 2009, and August 9, 2009) failed to reduce unemployment; the Congressional Budget Office (CBO) has stated that unemployment would be as much as 1.8 percent higher without the stimulus, numbering up to 3.3 million people who would not have jobs. Private analysts such as the Council of Economic Advisers agree with the CBO’s assessment.
bullet D’Souza claims that a controversial New York City Islamic center, which he calls a “mosque,” is to be built “near the site where terrorists in the name of Islam brought down the World Trade Center… at Ground Zero.” In reality, the proposed Islamic community center, Cordoba House (later renamed Park51), is two city blocks away from the site of the World Trade Center.
bullet D’Souza claims Obama does not believe in “American exceptionalism,” and says that Obama’s dreams are not “the American dreams,” but “something else… certainly not the American dream as conceived by the founders.” In reality, Obama has said time and again that he unequivocally believes in American exceptionalism, and has repeatedly stated his pride in being an American.
bullet D’Souza claims that Obama sees his father as a “hero” who “represented a great and noble cause.” In reality, Obama’s memoir, Dreams from My Father, offered a largely critical portrait of Obama’s father. As Washington Post media critic Howard Kurtz notes, “[T]hat book describes a young man’s struggle to understand his African roots and the father he never really knew, and offers a largely critical portrait of the Harvard-educated man who left his family.” Media Matters cites numerous other historians and reviewers who read Obama’s memoir as being highly critical of his father. As Reason Magazine’s Tim Cavanaugh wrote on the day D’Souza’s article was published, the memoir is “a narrative of Obama’s non-relationship with his father,” and continued, “[T]here is no evidence for the claim that the elder Obama bequeathed his son a coherent or even a partial political philosophy.”
bullet D’Souza claims that Obama opposes US military action in Afghanistan, because of his “anticolonial” bent. In reality, Obama campaigned on the idea that the US invasion of Afghanistan was an “absolutely vital” response to 9/11, and has made statements to that effect as far back as October 2001. As president, Obama has increased troop levels in Afghanistan and has said that US “security is at stake in Afghanistan.”
bullet D’Souza claims that Obama views “free market” as “code words for economic plunder,” saying that Obama views “the rich as an oppressive class, a kind of neocolonial power within America.” In reality, Obama has repeatedly praised the free market, and has consistently supported America’s large and small businesses in his economic policies. [Media Matters, 9/16/2010]

Entity Tags: Tim Cavanaugh, Howard Kurtz, Congressional Budget Office, Barack Obama, Abdel Baset al-Megrahi, Media Matters, Park51, Dinesh D’Souza, Council of Economic Advisers, Export-Import Bank

Timeline Tags: Domestic Propaganda

Forbes Magazine, after weathering weeks of intense criticism for its recent cover story by conservative pundit Dinesh D’Souza alleging that President Obama is driven by “Kenyan anticolonialism” (see September 12, 2010 and September 12, 2010 and After), agrees to an unusual post-publication fact-checking process to see if, as many have alleged, many of D’Souza’s allegations are erroneous (see September 16, 2010). The agreement was reached after Forbes’s Washington bureau chief met with White House press secretary Robert Gibbs, though Forbes spokeswoman Monie Begley says the decision to fact-check the article was made because of the “general clamor in the news media” and not because of White House pressure. [New York Times, 9/24/2010] During the meeting, Gibbs asked the bureau chief if the magazine bothered to fact-check D’Souza’s article. [Media Matters, 9/25/2010] Forbes has already issued one minor correction to the article on its Web site, noting that D’Souza had “slightly misquoted” President Obama in a speech he’d made about the Gulf oil spill; D’Souza claimed that Obama did not focus on “cleanup strategies,” but Forbes now acknowledges that “Obama’s speech did discuss concrete measures to investigate the oil spill and bring it under control.” D’Souza’s article was drawn from an upcoming book, The Roots of Obama’s Rage, to be published by conservative publishing house Regnery on October 4; Regnery publicist Kathleen Sweetapple says in a statement, “[T]here are a couple of minor errors that are completely inconsequential; what the critics are fuming about are not factual errors but disagreements of interpretation.” Forbes staffers contact the Export-Import Bank to check D’Souza’s claim that the Obama administration had directly supported the bank’s decision to lend $2 billion to Petrobras, Brazil’s state-owned oil company, for offshore drilling. D’Souza wrote that Obama supported the deal “not so oil ends up in the US. He is funding Brazilian exploration so that the oil can stay in Brazil.” Observers have noted that Obama had no say in the bank’s decision, and all five of the bank’s board of directors are Bush-era appointees. As part of the bank’s response, senior vice president Kevin Varney posts a comment on D’Souza’s blog highly critical of the author’s decision not to contact the bank before publishing the article. “I received a call yesterday from Nathan Verdi, a fact checker at Forbes, who was calling to fact check your article after it was published,” Varney writes. ”(Is this how journalism works now?)” Varney tells a New York Times reporter that the Petrobras loan “was begun in 2008 with career staffers and approved in 2009 by five Bush-appointed board members.” Deals such as this one, Varney continues, do not usually rise to the level of presidential awareness. For D’Souza to cite the deal as evidence of “an anticolonial, Kenyan ideology” on Obama’s part is “preposterous, it’s false, and it’s wrong.” [New York Times, 9/24/2010]

Entity Tags: Monie Begley, Export-Import Bank, Dinesh D’Souza, Barack Obama, Forbes magazine, Kevin Varney, Petrobras, Robert Gibbs, Nathan Verdi, Kathleen Sweetapple, Regnery Publishing

Timeline Tags: Domestic Propaganda

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