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Frank Carlucci
#1
The Strange Career
of Frank Carlucci


By Francis Schor

In the past few months there has been a rash of media reports on the Carlyle Group, a private equity investment group with billions of dollars of assets in the defense industry and a roster of directors and consultants which includes not only well-known Reagan and Bush appointees but also international figures like John Major, the former Prime Minister of Great Britain, and Fidel Ramos, the former President of the Philippines.

[Image: carlucci.gif]

The Chairman of the Carlyle Group, Frank Carlucci, was not only a former Secretary of Defense in the Reagan Administration, but a Deputy Director of the CIA during the Carter Administration. In fact, Carlucci's career in Washington provides some insight into the intersection between foreign and domestic policy in the Cold War years. Moreover, Carlucci's particular trajectory through the government and into private industry reveals much about the meaning and influence of the military-industrial complex in the past and continuing policies of the United States at home and abroad.

A critical part of Carlucci's career was spent as a foreign service officer during the 1950's and 1960's in such hot spots as the Congo and Brazil. He capped that foreign service career with a stint as Ambassador to Portugal from 1974-77, a key time in the history and development of the Portuguese revolution. Carlucci's navigation through these conflictual moments helps to situate the nuances of US cold war policies not only in these specific countries, but throughout the world.

As the Second Secretary in the US Embassy in the Congo during the time of the reign and consequent assassination of Patrice Lumumba, Carlucci was intimately involved in the US efforts to overthrow Lumumba's government. In the recent cinematic reconstruction of the life and times of the Congo's first elected prime minister, Lumumba by Haitian director, Raoul Peck, Carlucci is depicted as being part of a meeting of US, Belgian, and Congo officials plotting the murder of Lumumba. Claiming that this particular meeting was fabricated by the filmmaker, Carlucci did admit at a Washington premier of the film that US policy towards the Lumumba government was a bit "too strident."

The fact that CIA station chief Lawrence Devlin was under direct instructions from Secretary of State Dulles to seek the immediate removal of Lumumba is part of the historical record. There is even evidence to suggest that the actual hit on Lumumba came from the White House at Eisenhower's suggestion. In fact, there was an assassin hired by the US government, equipped with chemical weapons from Ft. Detrick, to use against Lumumba.

When Lumumba was captured in December 1960 after fleeing from house arrest by a former supporter and later vicious dictator of the Congo, Colonel Joseph Mobutu, the CIA probably helped to arrange for Lumumba's transfer to Katanga province where Katangan and Belgian henchman murdered Lumumba and disposed of his body.

Meanwhile, Carlucci was attempting to placate Lumumba supporters and draw them into a new coalition government. In the confusions that ensued, Carlucci found himself under house arrest and at odds with Clare Timberlake, the US Ambassador to the Congo who did not favor any involvement with Lumumba supporters. Fortunately for Carlucci, Timberlake was relieved of his ambassadorial post and replaced by Kennedy appointees whose liberal politics allowed for certain compromises with indigenous forces in Africa who might still serve the anti-communist alliance while facilitating US economic interests in the region.

Although Carlucci wasn't around for the mess that followed in the wake of UN intervention and the continuing zigs and zags of US policy in the Congo, he did wind up in Brazil in time for the overthrow of the Goulart government. The CIA and State Department were actively engaged in funneling money to opponents of Goulart and setting the stage for the eventual military coup in March and April of 1964.

Beyond his populist policies that threatened nationalization of US subsidies, Goulart was seen by Washington as "soft on communism" and "pro-Castro," indictments enough to spell his doom and put in place right-wing military dictators who would outlaw any political or union dissent for years. As a consequence of the military coup and its entrenchment, Carlucci gained a reputation as a "tough-guy" with the American Defense Attaché in Brazil, Colonel Vernon Walters.

By the end of the 1960s Carlucci had returned to Washington to become part of Nixon Administration, going from the Office of Economic Opportunity in 1969-71 to the Office of Management and Budget in 1971-72. He then was appointed Under Secretary of Health, Education, and Welfare from 1972-74. Among the other key members of these departments of domestic pacification were Caspar Weinberger, who was a Carlucci mentor, and Donald Rumsfeld, a former college buddy and wrestling mate from Princeton. Both Weinberger and Rumsfeld would later become, as would Carlucci, Secretaries of Defense. The bureaucratic imperatives honed in these cabinet positions would further underscore the primacy of military Keynesianism in governmental policy.

After so many positions as an underling and gray bureaucrat, Carlucci burst onto the explosive stage of post-revolutionary Portugal as Ambassador. With the approval of CIA Deputy Director Vernon Walters and Henry Kissinger, Carlucci began immediately to ferret out potential communist sympathizers among the left-leaning young military officers who helped foment the revolutionary coup in Portugal in 1974.

However, unlike Kissinger, Carlucci was willing to work with Socialist Mario Soares not out of any sympathy for Soares' politics, but because from Carlucci's perspective Soares was the "only game in town" to prevent the most militant leftists from assuming power in Portugal. Carlucci managed to convince President Ford of his approach by working directly through Rumsfeld who was, at the time, the White House chief of staff. Carlucci's pay-off came when Soares won the Presidency in 1976, cementing ties with NATO and instituting IMF approved austerity measures.

Such successful machinations in Portugal earned Carlucci a position as Deputy Director of the CIA in the Carter Administration from 1978-1981. When insurgent forces in Iran and Nicaragua in 1979 toppled the Shah and Somoza dictatorships, Carlucci and the CIA had little ability to control the upheavals even though there were various clandestine efforts to thwart the revolutionary forces in these countries. On the other hand, the CIA certainly played a significant role in sponsoring anti-Soviet Mujaheddin, perhaps even suckering the Soviets into their disastrous campaign in Afghanistan.

Carlucci then made the transition to a procurer of new weapons as Deputy Secretary of Defense in the Reagan Administration under Caspar Weinberger from 1981-83. During this time, in response to wide-spread criticism of Pentagon waste and mismanagement, Carlucci developed proposals (known as the "Carlucci Reforms") to rationalize the process of weapons procurement. However, Carlucci's policies did not lower costs. They did, apparently, offer new start-up companies the opportunity to get involved in DoD pork, something that the Carlyle Group would take advantage of later on.

After a brief departure into the world of private business at Sears World Trade from 1983-86, Carlucci returned to become first an Assistant to the President for National Security Affairs in 1987. He then went on to become Secretary of Defense later than year until his resignation in 1989 when he went to work for the Carlyle Group.

As Secretary of Defense he worked closely with the Joint Chiefs of Staff and particularly the Chairman, Admiral William Crowe, Jr. (Crowe is now a chief stock-holder of the parent company of BioPort, the recently FDA approved monopoly holder of an anthrax vaccine. The Carlyle Group also apparently has stock holdings in Crowe's company.) While overseeing some cutbacks in the DoD, particularly military bases in the US, Carlucci was committed to expanding certain military appropriations in the area of new technology as a way of strengthening the US national security state and expanding NATO. Although willing to compromise with Congress on the Strategic Defense Initiative (encountering in the process a rebuke from Reagan), Carlucci maintained a determined stance of US supremacy in nuclear arms and nuclear-war-fighting capability.

While outside of government in the 1990's, Carlucci managed to circulate on the boards of various think-tanks, e.g. the RAND Corporation, and help promulgate reports on national security and defense that urged increases in defense spending and the use of US military might. Nonetheless, he, along with other former Secretaries of Defense, opposed sending ground troops to Bosnia, perhaps because there were no long-term prospects for security or economic advancements.

Certainly, Carlucci's tenure at the Carlyle Group has resulted in an expanded portfolio of defense industries. Among the defense industries that Carlyle holds is United Defense, a maker of missile launch systems for the US Navy. However, Carlyle's reach under Carlucci has expanded into a variety of new technologies in defense and non-defense industries, such as global communications.

For example, Carlyle is keen on cleaning up hazardous materials at military bases and nuclear waste. Buying firms not yet publicly traded that deal with such services, such as Duratek and EG&G, allows Carlyle to position these firms for government contracts and then cash in when they are publicly traded. Such influence-peddling is certainly not new to former government officials who use their ties to past and present administrations for private benefit.

Carlucci, of course, insists that he does not importune or lobby his old buddy Don Rumsfeld. Nonetheless, the money trail from Carlyle's portfolio to Rumsfeld's office at the Pentagon is pretty evident. In one major decision by Rumsfeld, revealed by New York Times columnist Paul Krugman, United Defense's 70-ton Crusader artillery system was saved from a potential budget cut. Surely, the proposed massive increase in spending for the Pentagon by the Bush Administration will benefit the Carlyle Group.

What has seemed most egregious to inquiring journalists and public interest groups has been Carlyle's consultants, like former President Bush, whose ties to ruling elites in Saudi Arabia (including the Bin Laden family) and South Korea have resulted in lucrative holdings and investments in these countries for Carlyle. As noted by the executive director of the Center for Public Integrity: "(Former President) George Bush is getting money from private interests that have business before the government...And, in a really peculiar way, George W. Bush could, some day, benefit financially from his own administration's decisions, through his father's investments." In fact, George W. benefited in the past from Carlyle by being put on the board of a Carlyle investment, Caterair, an airline-catering company during his Texas business career days.

Similar to the Enron situation, the Bush family and others have enriched their careers and political fortunes with their ties to the Carlyle Group. However, this is a scandal that still hasn't gained the attention and measures necessary to prevent its scandalous continuance.

Carlyle's cozy relationship with DoD insiders and other power-brokers is part of Carlucci's effective management of Carlyle. The global reach of Carlyle, while often hidden behind the veil of private investments, moreover is indicative of Carlucci's own experience with US imperial and military policies.
Like the subject of C. Vann Woodward's seminal study of racial oppression and exploitation in the South, The Strange Career of Jim Crow, Carlucci's "strange" career is representative of significant other pathological imperatives in US political culture. The residual effects and on-going commitments to imperialism and militarism in US society feed such opportunistic careerists as Frank Carlucci.
Until there is a massive movement to dismantle all of the institutions and ideas that sustain US imperialism and militarism, Frank Carlucci and his ilk will continue to profit and prosper at the expense of the well-being and very lives of people here and abroad.
Francis Schor teaches at Wayne State University in Detroit, Michigan.
http://www.counterpunch.org/schorcarlucci.html
"The philosophers have only interpreted the world, in various ways. The point, however, is to change it." Karl Marx

"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.

“I think it would be a good idea” Ghandi, when asked about Western Civilisation.
Reply
#2
[SIZE=-1]Highlights & Quotes [/SIZE]
[SIZE=-1]Frank Carlucci, Ronald Reagan’s defense secretary and a former CIA deputy director, has had a colorful career as a government insider and corporate player. The Carlyle Group, which Carlucci headed for nearly a decade, has been called the “ex-president’s club” because of the large number of high-powered former government officials who work for the investment company, including former President George H. W. Bush, former British Prime Minister John Major, and former Secretary of State James Baker. Reports The Guardian, “When Carlucci arrived there [with Carlyle] in 1989, he brought with him a phalanx of former subordinates from the CIA and the Pentagon, and an awareness of the scale of business a company like Carlyle could do in the corridors and steak-houses of Washington. In a decade and a half, the firm has been able to realise a 34% rate of return on its investments, and now claims to be the largest private equity firm in the world. Success brought more investors, including the international financier George Soros and, in 1995, the wealthy Saudi Binladin family, who insist they long ago severed all links with their notorious relative. The first president Bush is understood to have visited the Bin Ladins in Saudi Arabia twice on the firm's behalf.” (9)[/SIZE]
[SIZE=-1]When Carlucci isn’t busy fending off questions about how Carlyle does its business, he is fighting accusations that he was involved in the assassination of former independent Republic of Congo Prime Minister Patrice Lumumba when Carlucci was second secretary at the embassy in Kinshasa in the early 1960s. In 2002, Carlucci’s lawyers successfully pressured the distributor of the HBO film Lumumba to delete any references to their client. A scene that was cut from the movie depicted Carlucci and his boss, Ambassador Clare Timberlake, in a meeting with Congolese officials who were plotting Lumumba's murder. Carlucci contends that he and Timberlake had no knowledge whatsoever of the plot, telling Pacific News, "There's no substantiation to that charge in any of the reviews done on Lumumba's death by the United Nations or the recent Belgian book or Maddie Kalb's book. ... If you go through the Kalb book [which was based on declassified U.S. cables], you'll find no references to me." [/SIZE]
[SIZE=-1]However, there seem to be several problems with Carlucci’s contention, starting with the fact that the Kalb book does in fact mention Carlucci. Pacific News quotes the book: "Whenever Timberlake, accompanied by his French-speaking second secretary, Frank Carlucci, went to see Kasavubu ... to try to persuade him that Lumumba was an extremely dangerous man, Kasavubu ... would say nothing. ... As Timberlake noted in a gloomy cable to Washington, 'I confess I have not yet learned the secret of spurring Kasavubu to action.'" [/SIZE]
[SIZE=-1]Pacific also cites a letter from Ludo de Witte, author of the “recent Belgian book” The Assassination of Lumumba, to Raoul Peck, the filmmaker who made the HBO film: "From mid-August (when Eisenhower gave indirectly the green light for the assassination of Lumumba) till mid-October, there was a de facto collaboration and exchange of information between all important personnel in the U.S. Embassy (that is Timberlake, Carlucci and Devlin included), including on efforts to get rid of Lumumba." (2)[/SIZE]
[SIZE=-1]Carlucci, who went on to have an extremely successful career in government after the Lumumba affair, has received several awards and honors for his work, including the Herbert Roback Memorial Award, the George C. Marshall Award, the Woodrow Wilson Award, the James Forrestal Award, the Presidential Citizens Award, the National Intelligence Distinguished Service Medal, the Distinguished Intelligence Medal, the Defense Department Distinguished Civilian Service Award, and the State Department Superior Service Award. (3)[/SIZE]
[SIZE=-1]Institutional Affiliations
National Endowment for Democracy (NED): Member, Board of Directors (4)
Project for the New American Century (PNAC): Has signed several PNAC advocacy letters (5)
RAND Corporation: Member, Board of Trustees; Co-Chair, Advisory Board for Center for Middle East Public Policy (6), (7)
American Academy of Diplomacy: Chairman Emeritus (8)
Government Service
Department of Defense: Secretary of Defense, November 23, 1987-January 20, 1989 (1)
Department of State: National Security Adviser, 1987 (4)
White House: Assistant to the President for National Security Affairs, 1986 (1)
White House: Member, President’s Blue Ribbon Commission on Defense Management, where he worked on issues of long-range planning and the budgeting and programming process, 1985-1986 (1)
Department of Defense: Deputy Secretary, 1981-1983 (1)
Central Intelligence Agency: Deputy Director, 1978-1981 (1)
U.S. State Department: Ambassador to Portugal, 1975-1978 (1)
Department of Health, Education and Welfare: Undersecretary, 1972-1974 (1)
Office of Management and Budget: Associate Director, Deputy Director, 1971-1972 (1)
Office of Economic Opportunity: Assistant Director, 1969; Director, 1970-1971 (1)
Department of State: Foreign Service Officer, 1957-1969 (1)
U.S. Navy: Lieutenant, 1952-1954 (1)
Corporate Connections/Business Interests
Carlyle Group: chairman emeritus (3)
G2 Satellite Solutions: Advisory board member (7)
Nortel Networks: Chairman Emeritus (3)
U.S.-Taiwan Business Council: Chairman Emeritus (3)
Neurogen Corp.: Chairman of Board of Directors (3)
SunResorts, Ltd., N.V.: Member, Corporate Board (3)
Encysive Pharmaceuticals, Inc: Member, Corporate Board (3)
United Defense, L.P.: Member, Corporate Board (3)
Ashland, Inc.: Member, Corporate Board (4)
Kaman Corp.: Member, Corporate Board (4)
Quaker Oats Co.: Member, Corporate Board (4)
Pharmacia Corp.: Member, Corporate Board (4)
Sears World Trade, Inc.: President, Chairman and CEO, 1983-1986 (1)
Education
Harvard Graduate School of Business Administration (1)
Princeton University: B.A., 1952 (1)
[/SIZE]
Sources
[SIZE=-1](1) Secretary of Defense Histories
http://www.defenselink.mil/specials/secd...rlucci.htm
(2) Lucy Komisar, “Carlucci Can’t Hide His Role in ‘Lumumba’,” Pacific News Service, February 14, 2002
http://news.pacificnews.org/news/view_ar...cle_id=882

(3) “The Carlyle Group Names Louis V. Gerstner Jr. Chairman, Frank Carlucci to Become Chairman Emeritus” – Press Release, November 21, 2002
http://www.thecarlylegroup.com/eng/news/l5-news693.html

(4) NED Board
http://www.ned.org/about/board_bios/carlucci.html

(5) Project for the New American Century
http://search.freefind.com/find.html?id=...cci%22&t=s

(6) RAND Corporation – Board of Trustees
http://www.rand.org/organization/lists/randtrustees.htm

(7) "PanAmSat Expands Presence in Washington," PR Newswire, September 18, 2003
[/SIZE]
"The philosophers have only interpreted the world, in various ways. The point, however, is to change it." Karl Marx

"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.

“I think it would be a good idea” Ghandi, when asked about Western Civilisation.
Reply
#3
Carlucci Can't Hide His Role in 'Lumumba'
Pacific News Service, Lucy Komisar, Posted: Feb 13, 2002
When HBO airs "Lumumba" starting this Saturday, viewers won't get the whole story. That's because former U.S. Secretary of Defense Frank Carlucci has succeeded in getting the film's distributor to bleep out his character's identity from the film. But hiding the U.S. role in the popular African leader's assassination, writes PNS contributor Lucy Komisar, won't be so simple.

NEW YORK--Most people would be thrilled to be a real-life character in a movie. Not Frank Carlucci. Lawyers for the former U.S. Secretary of Defense have pressured the film's distributor to remove his character's identity from the showings of "Lumumba" on HBO this month.

Carlucci doesn't appreciate the attention. Maybe that's understandable. In 1960, he was the second secretary in the U.S. embassy in Kinshasa, the Congo. That was the time when, according to declassified U.S. State Department cables and testimony to the Senate's Church committee on assassinations, the United States plotted with the incipient dictator Mobutu Sese Seko and the Belgians to bring down Patrice Lumumba, the popular nationalist leader who'd been chosen prime minister by a Brussels "roundtable" of Congo leaders. Lumumba's sin was that, when neither the Americans nor the United Nations would help him against Belgian-organized plots to destabilize his government, he turned to the Russians.

After an extensive parliamentary investigation, the Belgian prime minister earlier this month apologized to the Lumumba family for his country's role in the killing, an apology accepted by Lumumba's son. Carlucci, however, appears to have no regrets.

The scene he doesn't like shows U.S. Ambassador Clare Timberlake and an American that the uncensored film identifies as Carlucci in a meeting plotting Lumumba's murder. The Carlucci character is an oily fellow who makes a clearly disingenuous comment about how the U.S. doesn't "meddle" in other countries' affairs.

Carlucci claims he wasn't at that meeting. "The scene in which they portrayed me was totally inaccurate," he said. Neither, he said, was Timberlake accurately portrayed. "I was quite close to Timberlake and served as his interpreter in most of his meetings." (Timberlake didn't speak French.) "He had no role in it," Carlucci says, repeating that the United States had "no role whatsoever" in plotting Lumumba's death. He also said he'd had "no knowledge of the Belgian" role.

"There's no substantiation to that charge in any of the reviews done on Lumumba's death by the United Nations or the recent Belgian book or Maddie Kalb's book," Carlucci said. "If you go through the Kalb book, you'll find no references to me." "The Congo Cables," by Madeline Kalb, was based on declassified U.S. documents.

Timberlake is dead. Filmmaker Raoul Peck says he had reasons to believe that what he portrayed in the film was accurate. A Haitian, Peck spent 25 years in the Congo/Zaire after his father fled there as an exile from Haitian dictator Francois Duvalier. His film has won prizes at festivals in Los Angeles, Santo Domingo, Milan and Acapulco and was presented at the Directors Fortnight at the Cannes Film Festival.

So let's take Carlucci's advice and look at "The Congo Cables." Kalb wrote about the efforts by the U.S. Embassy and the CIA to topple Lumumba: "Whenever Timberlake, accompanied by his French-speaking second secretary, Frank Carlucci, went to see Kasavubu ... to try to persuade him that Lumumba was an extremely dangerous man, Kasavubu ... would say nothing. ... As Timberlake noted in a gloomy cable to Washington, 'I confess I have not yet learned the secret of spurring Kasavubu to action.'"

Of course you won't find a document from Timberlake saying, "We are pressing some Congolese to kill Lumumba." Ambassadors don't write such documents. You will find documents by Timberlake and CIA chief Lawrence Devlin talking about their desires and efforts to stop Lumumba, and even Devlin's unhappiness at one leader's refusal to commit murder. The State Department's official "Analytical Chronology of the Congo Crisis" talks about a plan "to bring about the overthrow of Lumumba and install a pro-Western government... Operations under this plan were gradually put into effect by the CIA."

According to Kalb, Timberlake informed Washington on August 24, 1960, "If Lumumba and his wired-in communist advisers are not stopped by a policy of strength, we think this country is headed toward another China by way of technicians instead of bayonets." On August 24, CIA chief Lawrence Devlin reported "discouraging news: anti-Lumumba leaders had approached Kasavubu with a plan to assassinate Lumumba, but Kasavubu had refused, explaining that he was reluctant to resort to violence and that there was no other leader of sufficient stature (to) replace Lumumba."

Ludo De Witte, author of "the Belgian book" -- "The Assassination of Lumumba" -- wrote Peck that "from mid-August (when Eisenhower gave indirectly the green light for the assassination of Lumumba) till mid-October, there was a de facto collaboration and exchange of information between all important personnel in the U.S. Embassy (that is Timberlake, Carlucci and Devlin included), including on efforts to get rid of Lumumba."

The Eisenhower "green light" is in testimony by NSC staff member Robert Johnson to the Church committee hearings of 1975-1976. Johnson said he was astonished to hear that Eisenhower had given an order for the assassination of Lumumba. The Church committee concluded that testimony permitted a "reasonable inference" that the plot to assassinate Lumumba was authorized by the president.

De Witte wrote Peck, "There is another thing: we know that Devlin and other U.S. personnel in the capital were informed about the transfer of Lumumba to the Kasai or Katanga (testimony by Colonel Louis Marlière, active in the entourage of Mobutu). Everybody knew that they were waiting for some subcontractors to do the dirty job, and, given the rank and the involvement of Carlucci in Lumumba-related activities from the U.S. Embassy, we may assume (although it's not proven) that Carlucci knew of what equaled a death sentence for Lumumba. Once again I turn to the testimony by Colonel Louis Marlière: nobody opposed the transfer."

Carlucci went on to a stellar career, including posts as ambassador to Portugal, deputy director of the CIA, assistant to the President for National Security affairs, and Secretary of Defense, the latter two positions in the Reagan administration. He is now chairman of the Carlyle Group, an investment firm.

Emily Russo, co-president of distributor Zeitgeist Films in New York, said the small company couldn't afford to go to court to defend its right to tell the story. Curiously, Carlucci sought to alter only the mass-market version shown on television or sold on videotapes and DVDs. Screenings at theaters around the United States and the rest of the world keep the original French track. HBO is showing two versions. One is an HBO dub in English: no "Carlucci" there. The other, an English-subtitled version, does not mention Carlucci in the subtitles, and replaces his name on the French soundtrack with a "bleep."

PNS contributor Lucy Komisar (lkomisar@msn.com) is a New York journalist who visited Zaire in the early 1990s to study the impact of U.S. policy there.
http://news.newamericamedia.org/news/vie...cle_id=883
"The philosophers have only interpreted the world, in various ways. The point, however, is to change it." Karl Marx

"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.

“I think it would be a good idea” Ghandi, when asked about Western Civilisation.
Reply
#4
Last November Frank Carlucci, chairman of the Carlyle Group, spoke to a conference on national security sponsored by the Pentagon and the Institute for Foreign Policy Analysis, a conservative think tank where he sits on the board of directors. His topic, "Employing the Instruments of National Power in a Complex Environment," was a perfect metaphor for Carlucci's career, which has taken him from the CIA to the highest ranks of the defense and national security establishment and, finally, to the top of one of the world's largest private equity funds.





Typically, Carlucci was introduced to his panel not as one of the country's wealthiest executives but as National Security Adviser and Defense Secretary during the Reagan Administration. Carlucci began by praising the Bush Administration's conduct of the war. He didn't mention that Carlyle's biggest defense company, United Defense Industries, decided in the wake of September 11 to go public, a deal that would raise the value of Carlucci's stake in that company to $1.2 million by mid-March. Then he launched into a subject he holds dear: the weakening of US intelligence capabilities. The CIA, he lamented, "has been used as a political football since the days of the Church committee. They've overlaid the process with regulations. We've forced the CIA to disgorge information threatening the protection of sources and methods. We've created in effect a risk-averse atmosphere; we've indicted CIA officers for implementing policy." As a result, "we have no covert action capability."
Carlucci should know. After a brief stint in the 1950s as an executive with the Jantzen swimsuit company, he joined the foreign service, serving in Congo, Brazil and several other countries where US intelligence played a key role during the cold war. President Carter later recognized Carlucci's service by appointing him deputy director of the CIA.
Although he is one of Washington's most powerful financiers, Carlucci avoids the limelight. But his facade cracked slightly last year, when Haitian director Raoul Peck released Lumumba, a dramatic account of the life and times of Patrice Lumumba, Congo's first prime minister, who was brutally murdered in 1961. In one scene of the film, a group of Belgian and Congolese officials holding Lumumba prisoner vote to kill him. One of the Belgians turns to a gentleman sitting off to the side. "Carlucci?" he asks. The American mumbles something about the US government never involving itself in the internal affairs of other countries, and abstains.
Carlucci, who was the second secretary of the US Embassy in Congo from 1960 to 1962, has vehemently denied that he played any role in Lumumba's demise. When Lumumba was shown at the Visions Theater in Washington last July, Carlucci made a personal appearance to address Peck's charges. "The scene is tendentious, false, libelous; it never happened and it is a cheap shot," he said. But he didn't stop there. When HBO aired the film in February, lawyers for Carlucci managed to convince the company to delete the scene.
There is plenty of documentation of Carlucci's role in the US intervention in postcolonial Congo, including an account, partly verified by Carlucci, of his role in seeking Lumumba's overthrow in Jonathan Kwitny's 1984 book on US foreign policy, Endless Enemies (see also Francis Shore's recent article in CounterPunch, "The Strange Career of Frank Carlucci,"). Nation contributor Lucy Komisar, a journalist who spent time in Zaire in the early 1990s, wrote an incisive analysis for Pacific News Service in February.



The most famous story about Carlucci involves a visit to President John F. Kennedy of Cyrille Adoula, the Congolese prime minister who succeeded Lumumba. As recounted by former Director of Central Intelligence James Schlesinger at a recent New York dinner of US business and labor leaders honoring the Carlyle chairman, the prime minister opened a meeting at the White House by asking, "Where is Carlucci?" Said Schlesinger: "This caused some consternation on the part of President Kennedy, who said 'Who the hell is Carlucci?'" JFK quickly dispatched Dean Rusk to find him, thus beginning Carlucci's rise as what Schlesinger called "an itinerant laborer of the executive branch."




Carlucci was brought into the Nixon Administration by Donald Rumsfeld, his roommate and wrestling partner at Princeton, and quickly make his way into senior positions at the Office of Economic Opportunity (where he worked with Dick Cheney), the Department of Health, Education and Welfare (where he was mentored by Caspar Weinberger) and the White House Office of Management and Budget (where he hired an up-and-coming Army officer named Colin Powell). In the mid-1970s Carlucci was ambassador to Portugal, at a time of revolutionary ferment that led to the dismantling of the country's empire in Asia and Africa. Carlucci, following long-established CIA practice of working with the left when it was convenient, decided to back a faction of moderate socialists after a group of pro-Communist military officers seized power in Lisbon. Back home, recalled Schlesinger, "I had to listen to Henry Kissinger suggesting that Carlucci was giving away Portugal to the Communists." Carlucci's background as an intelligence operative came to public light in 1977, when Carter appointed him to the number-two spot at the CIA. His work for a Democratic administration led some conservatives to question Carlucci's credentials when he was appointed Weinberger's deputy at the Pentagon in 1981. But Carlucci's record in reforming the Pentagon's procurement process and his use of lie detectors to crack down on leakers erased any doubts about the CIA man from Princeton.
In 1982 Carlucci left the Pentagon to run Sears World Trade, which was designed to replicate a Japanese-style trading company. Fortune, citing international traders, speculated that SWT "was providing cover jobs for US intelligence operations," an accusation that gained credence when the Washington Post revealed that SWT operated a secret subsidiary that advised US and foreign companies on selling arms overseas (Carlucci denied the story). SWT went bankrupt in 1986, but Carlucci walked away with a $735,722 termination settlement.
Since leaving government, Carlucci has spent much of his time as a director for the most powerful multinational corporations in North America, including General Dynamics, Westinghouse Electric, Bell Atlantic, Nortel, Quaker Oats, CB Commercial Real Estate Group and BDM International, a military consulting company with extensive operations in Saudi Arabia that Carlyle sold to TRW in 1998.
Carlucci is currently chairman of the board of Neurogen, the Connecticut pharmaceutical giant, and Infraworks, an Austin, Texas, company that sells e-mail software to intelligence agencies and the private sector (the e-mail disappears after a second reading). In addition, Carlucci is a member of corporate boards at United Defense, Ashland, Kaman (another big military contractor), Pharmacia (which was created by a merger between Monsanto and Pharmacia-Upjohn), Texas Biotechnology and Sun Resorts, a South African hotel chain based in Mauritius.



Carlucci's extraordinary reach in the corporate world is an obvious boon to Carlyle. "Carlucci is most handy at picking up the phone and making a call, not to people in the government but people in the commercial world," said William Conway, one of Carlyle's founding partners, who recruited Carlucci in 1989.




Carlucci also sits on the boards of numerous think tanks and associations, including the RAND Corporation, the National Endowment for Democracy and the Middle East Policy Council. He is chairman of the national advisory board of the Private Sector Council, which advises the government on privatization and procurement policies. And he exerts considerable clout as chairman of the US-Taiwan Business Council, which represents US multinationals doing business in both Taiwan and mainland China, including Boeing, General Electric, Honeywell and Babcock & Wilcox. In March the council and several US military contractors--including Carlyle's United Defense--sponsored a three-day, closed-door summit of US and Taiwanese defense officials. During the conference, at Carlucci's invitation, Tang Yao-Ming, Taiwan's Defense Minister, met with Deputy Defense Secretary Paul Wolfowitz in the highest-level defense contact since diplomatic relations between the two countries were severed in 1979. But Carlucci's record as a corporate director is spotty at best. When he was chairman of Nortel, the company experienced what the Toronto Star recently described as a "disaster of epic proportions," losing more than $360 billion worth of shareholder value. "The company has fired almost 50,000 employees, a record in Canadian business," the Star reported. "Nortel's $19.2 billion loss in the second quarter [of 2000] exceeded the GNP of El Salvador." It charged that Carlucci, who sat on eight other corporate boards during his tenure at Nortel, wasn't "paying attention."
In 1996 Carlucci was the worst offender in a Teamsters union survey of "America's Least Valuable Directors." The survey criticized twenty-three executives for earning huge salaries while serving on multiple boards and at problem companies. A year earlier Carlucci was number two on a BusinessWeek survey of "directors with the least-distinguished track records." Ironically, that survey drew heavily on research on shareholder value conducted by the California Public Employees Retirement System, which has invested $475 million in the Carlyle Group.
"Does that mean that we tacitly approve of Frank Carlucci's multiple board memberships?" asked Pat Macht, a CalPERS spokeswoman. "The answer is, absolutely--that we don't approve, because it is contrary to what our corporate governance actions are about." But CalPERS, she said, "can't have a personal bone to pick with Carlucci as it relates to Carlyle, because it has been a very good performer for us." Carlucci did not agree to be interviewed for this article.
In December Carlucci granted his first press interviews since the war began. Not surprisingly, the topic was his old pal at the Pentagon, Donald Rumsfeld. "The military likes a leader--and has got one," he told the Baltimore Sun.
Just as this issue went to press, Carlyle announced another defense IPO: This time it will sell $160 million worth of its controlling shares in United States Marine Repair, the country's largest nonnuclear ship repair company, which does 75 percent of its business with the US Navy. Carlucci, not surprisingly, sits on its board of directors. What's good for America, it seems, is good for Carlyle--and Frank Carlucci.

http://www.thenation.com/doc/20020325/shorrock20020314
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