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Profile: William Draper

William Draper 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

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

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