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How Ahmed Chalabi Conned the Neocons

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Sertorius [OP]

2004-05-05 09:23 | User Profile

[url]http://www.salon.com[/url]

This lengthly article is written by a writer for the Financial Times. Apparently, there is more to Chalabi that meets the eye and if anything, this article shows that the neo-cons are even stupider than we previously thought.

How Ahmed Chalabi Conned the Neocons The hawks who launched the Iraq war believed the deal-making exile when he promised to build a secular democracy with close ties to Israel. Now the Israel deal is dead, he's cozying up to Iran -- and his patrons look like they're on the way out. A Salon exclusive.

By John Dizard

May 4, 2004 | When the definitive history of the current Iraq war is finally written, wealthy exile Ahmed Chalabi will be among those judged most responsible for the Bush administration's decision to invade Iraq and topple Saddam Hussein. More than a decade ago Chalabi teamed up with American neoconservatives to sell the war as the cornerstone of an energetic new policy to bring democracy to the Middle East -- and after 9/11, as the crucial antidote to global terrorism. It was Chalabi who provided crucial intelligence on Iraqi weaponry to justify the invasion, almost all of which turned out to be false, and laid out a rosy scenario about the country's readiness for an American strike against Saddam that led the nation's leaders to predict -- and apparently even believe -- that they would be greeted as liberators. Chalabi also promised his neoconservative patrons that as leader of Iraq he would make peace with Israel, an issue of vital importance to them. A year ago, Chalabi was riding high, after Saddam Hussein fell with even less trouble than expected.

Now his power is slipping away, and some of his old neoconservative allies -- whose own political survival is looking increasingly shaky as the U.S. occupation turns nightmarish -- are beginning to turn on him. The U.S. reversed its policy of excluding former Baathists from the Iraqi army -- a policy devised by Chalabi -- and Marine commanders even empowered former Republican Guard officers to run the pacification of Fallujah. Last week United Nations envoy Lakhdar Brahimi delivered a devastating blow to Chalabi's future leadership hopes, recommending that the Iraqi Governing Council, of which he is finance chair, be accorded no governance role after the June 30 transition to sovereignty. Meanwhile, administration neoconservatives, once united behind Chalabi and the Iraqi National Congress he founded, are now split, as new doubts about his long-stated commitment to a secular Iraqi democracy with ties to Israel, and fears that he is cozying up to his Shiite co-religionists in Iran, begin to emerge. At least one key Pentagon neocon is said to be on his way out, a casualty of the battle over Chalabi and the increasing chaos in Iraq, and others could follow.

"Ahmed Chalabi is a treacherous, spineless turncoat," says L. Marc Zell, a former law partner of Douglas Feith, now the undersecretary of defense for policy, and a former friend and supporter of Chalabi and his aspirations to lead Iraq. "He had one set of friends before he was in power, and now he's got another." While Zell's disaffection with Chalabi has been a long time in the making, his remarks to Salon represent his first public break with the would-be Iraqi leader, and are likely to ripple throughout Washington in the days to come.

Zell, a Jerusalem attorney, continues to be a partner in the firm that Feith left in 2001 to take the Pentagon job. He also helped Ahmed Chalabi's nephew Salem set up a new law office in Baghdad in late 2003. Chalabi met with Zell and other neoconservatives many times from the mid-1990s on in London, Turkey, and the U.S. Zell outlines what Chalabi was promising the neocons before the Iraq war: "He said he would end Iraq's boycott of trade with Israel, and would allow Israeli companies to do business there. He said [the new Iraqi government] would agree to rebuild the pipeline from Mosul [in the northern Iraqi oil fields] to Haifa [the Israeli port, and the location of a major refinery]." But Chalabi, Zell says, has delivered on none of them. The bitter ex-Chalabi backer believes his former friend's moves were a deliberate bait and switch designed to win support for his designs to return to Iraq and run the country.

Chalabi's ties to Iran -- Israel's most dangerous enemy -- have also alarmed both his allies and his enemies in the Bush administration. Those ties were highlighted on Monday, when Newsweek reported that "U.S. officials say that electronic intercepts of discussions between Iranian leaders indicate that Chalabi and his entourage told Iranian contacts about American political plans in Iraq." According to one government source, some of the information he gave Iran "could get people killed." A Chalabi aide denied the allegation. According to Newsweek, the State Department and the CIA -- Chalabi's longtime enemies -- were behind the leak: "the State Department and the CIA are using the intelligence about his Iran ties to persuade the president to cut him loose once and for all."

But the neocons have bigger problems than Chalabi. As the intellectual architects of an "easy" war gone bad, they stand to pay the price. The first to go may be Zell's old partner Douglas Feith. Military sources say Feith will resign his Defense Department post by mid-May. His removal was reportedly a precondition imposed by Ambassador to the U.N. John Negroponte when he agreed to take over from Paul Bremer as the top U.S. official in Iraq. "Feith is on the way out," Iraqi defense minister (and Chalabi nephew) Ali Allawi says confidently, and other sources confirm it. Feith's boss, Undersecretary of Defense Paul Wolfowitz, may follow. Bush political mastermind Karl Rove is said to be determined that Wolfowitz move on before the November election, even if he comes back in a second Bush term. Sources say one of the positions being suggested is the director of Central Intelligence.

In part, the White House political crew is reacting to pressure from the uniformed military, which is becoming a quiet but effective enemy of the neocons. The White House seems to be performing triage to save the political capital of Defense Secretary Donald Rumsfeld and Vice President Dick Cheney, Iraq hawks who have close ties to the neocons. "Rumsfeld and Cheney stay," says an Army officer. "Powell has his guy Negroponte in there. But the neocons are losing power day by day."

Why did the neocons put such enormous faith in Ahmed Chalabi, an exile with a shady past and no standing with Iraqis? One word: Israel. They saw the invasion of Iraq as the precondition for a reorganization of the Middle East that would solve Israel's strategic problems, without the need for an accommodation with either the Palestinians or the existing Arab states. Chalabi assured them that the Iraqi democracy he would build would develop diplomatic and trade ties with Israel, and eschew Arab nationalism.

Now some influential allies believe those assurances were part of an elaborate con, and that Chalabi has betrayed his promises on Israel while cozying up to Iranian Shia leaders. Whether because of intentional deception or a realistic calculation of what the Iraqi people will accept, it's clear that Chalabi won't be delivering on his bright promises to ally a democratic Iraq with Israel. Had the neocons not been deluded by gross ignorance of the Arab world and blinded by wishful thinking, they would have realized that the chances that Chalabi or any other Iraqi leader could deliver on such promises were always remote. In fact, they need have looked no further than the Israeli media: A long piece in Israel's Jerusalem Report magazine published nine days before the war began last year featured Israelis who dismissed Chalabi's promises about Israel as a political ploy, "a means by which to appeal to the Jewish lobby and, in turn, the administration."

"Chalabi has no use for Israel. He knew all along that this was a nonstarter," says Robert Baer, a former CIA field officer who led covert U.S. operations inside Iraq in the mid-1990s aimed at toppling Saddam. "Chalabi knows exactly what Israel stands for in Iraq and in Iran, with or without Saddam. The idea of building the pipeline to Haifa, or rapprochement with Iran ... I'm sure he told [the neocons] these things could happen, that he played to their prejudices and said, 'This is the new Middle East,' but he didn't believe any of it. That's the way Chalabi operates."

"He was willing to ally with anyone to get where he is now, whether it was the neocons, the Israelis or the Iranians," adds Baer. "He wanted back into Iraq and nothing was going to stop him."

It could have been predicted that Chalabi would want to deal with Israel's enemies in Iran. He and his relatives have made that clear. As Iraq's defense minister, Ali Allawi, says, "We have a lot of problems in common with Iran. If we could involve them in a regional security agreement with us, that would be very fruitful." Still, Chalabi's visit to Iran last December and his repeated assertions that peace in Iraq requires peace with Iran first alarmed, then embittered, his old friends.

Chalabi's neoconservative friends, however, seem to have looked away from evidence that the businessman has always allied himself with whomever can help him the most. In the 1980s, Chalabi's scandal-plagued Petra Bank funneled money to Amal, a Shia militia allied with Iran in Lebanon. And according to a former CIA case officer who worked in Iraq, Chalabi had close ties to the Iranian regime when he was in Kurdish Northern Iraq in the mid-1990s trying to foment resistance to Saddam. He even dealt with Saddam himself when the price was right, and initiated a method to finance the dictator's trade with Jordan in the 1980s through his Petra Bank.

Chalabi's Arab admirers say they knew he'd never make good on his promises to ally with Israel. "I was worried that he was going to do business with the Zionists," confesses Moh'd Asad, the managing director of the Amman, Jordan-based International Investment Arabian Group, an industrial and agricultural exporter, who is one of Chalabi's Palestinian friends and business partners. "He told me not to worry, that he just needed the Jews in order to get what he wanted from Washington, and that he would turn on them after that."

Ahmed Chalabi refused to speak to Salon. He has denounced U.N. envoy Brahimi as an "Arab nationalist" and compared the U.S. decision to bring back some former Iraqi soldiers to "allowing Nazis into the German government immediately after World War II." Douglas Feith, Chalabi's longtime ally and sponsor, also declined a request for an interview. Nevertheless, the outline of the new conflict between the Shiite former exile and his erstwhile sponsors is clear, based on interviews with Iraqi officials, U.S. military personnel and intelligence officers, and politically connected Israelis.

The crux of the conflict is Iran, and whether the U.S. should try to make a deal with the Islamic Republic to enlist its support for peace in Iraq. Before and immediately after the war, the neoconservative position was that U.S. empowerment of the long-disenfranchised Shia community would make possible an Iraqi government that would make a "warm peace" with Israel. This in turn would pressure the rest of the Arab world to make a similar peace, without the need to concede land to the Palestinians.

This was, of course, a pipe dream: The Shia community in Iraq, like the Sunni community, is overwhelmingly anti-Israel, and the entire range of its leadership has close ties with Iran. Belatedly realizing that Chalabi's promise to build a secular, pro-Israel Shiite government is not going to come true, in the past couple of months the neocons in the Defense Department have tried to come up with a new plan. Feith, Wolfowitz and others are backing away from the Shia, due to their ties to Iran as well as Chalabi's deceptions. They are trying to cobble together a coalition of rehabilitated Sunni Muslim Iraqi Army officers and Kurdish leaders backed by their militias that would have Shia participation, but in a reduced role. For proponents of this strategy, the front-runner to be prime minister of the next version of the transitional government is Kurdish leader Jalal Talabani, the founder and leader of the Patriotic Union of Kurdistan.

This policy has very little support. It's opposed by those neocons who still back Ahmed Chalabi and his Shia allies -- including influential former Defense Policy Board chair Richard Perle, along with neocon intellectuals Michael Ledeen, Bernard Lewis and Barbara Lerner. Although they like Talabani, they oppose the tilt toward the Sunnis, and some are still adamant that Chalabi play a role. "He's effective in bringing groups of Iraqis together, something he's done for many years," Perle said on CNN on March 28. "He believes in democracy. I have complete confidence in him, and I hope the people of Iraq are wise enough to see his benefits."

The shift in strategy toward Talabani is also being dismissed, for different reasons, by National Security Advisor Condoleezza Rice, Secretary of State Colin Powell, John Negroponte, the new ambassador to Iraq, and the uniformed military. They look at the Iraqi population statistics, which show a Shia majority; a map of the country, which shows a long, hard-to-defend border with Iran; and the U.S. military order of battle, which shows overstretched armed forces, and conclude there cannot be a stable Iraqi government that isn't led by the majority Shia.

Even the Kurds have their doubts about the new rise in their standing with the neocons. Richard Galustian, a British security contractor in Iraq who works closely with the Kurdish authorities, says, "The political elevation of the Kurds within Iraq will be very unpopular with other Iraqis, and will be treated with caution by the Kurdish leaders themselves. Many will be skeptical of the ability of the U.S. administration to sustain and remain consistent in any new relationships." If the Americans can turn on the Shia, the reasoning goes, why couldn't they later turn on the Kurds?

President Bush's ability to impose order on this mess is not obvious, and he doesn't have more than a couple of weeks to figure out a solution. With photographs of U.S. troops torturing and abusing Iraqi prisoners inflaming the Arab world, U.S. casualties soaring, the June 30 date to turn over sovereignty looming and no exit strategy in sight, Bush's Iraq adventure has turned into a deadly mess that seems certain to make the U.S. more at risk from terrorism, not less. Bush brought this trouble on himself by buying into the neocons' interpretation of the dynamics of the Middle East, and into Ahmed Chalabi's plans for Iraq -- maybe most disastrously by buying Chalabi's assurances that a secular government dominated by Israel-friendly Shia was possible. If Bush and the neocons wanted to know about Chalabi's real deal-making nature, the signs were there for them to read. But they didn't want to know.

Chalabi appears to have recognized that the neocons, while ruthless, realistic and effective in bureaucratic politics, were remarkably ignorant about the situation in Iraq, and willing to buy a fantasy of how the country's politics worked. So he sold it to them.

Ahmed Chalabi's family, Shia Muslims from Kut in southern Iraq, has a tradition of working with occupation governments, starting with the regime of the Ottoman Turks in 1638. Chalabi's father, Abdul Haydi Chalabi, was a member of the council of ministers of King Faisal II, whose short-lived Hashemite dynasty was installed by the British in 1921. He was also president of the Iraqi Senate created by the Hashemites.

The Hashemites are Sunni Muslim nobility, originally from a region in today's Saudi Arabia. While they lost their leading position in the Arabian peninsula to the Al Sa'ud family, they were successfully installed as monarchs in both Jordan and Iraq with British support. The Jordanian Hashemites found a base of support in the local Bedouin tribes, and retain power to this day. The Iraqi Hashemite branch, though, was strongly opposed by the local Shia Muslim ayatollahs from the beginning. So in 1922 the Iraqi Shia religious leaders in Najaf issued a fatwa, or decree, forbidding observant Shia from supporting the Hashemites. The Chalabi family wasn't deterred, though. They were among the few Shia to defy the fatwa and support the British-imposed dynasty. They were rewarded with royal patronage, and wound up controlling the flour milling industry in Baghdad and Basra. The fatwa was finally lifted in 1937, and by then the Chalabis had made a fortune.

Ahmed Chalabi was born in 1944. His family reached the peak of its wealth and influence during his childhood. In 1958, though, the Hashemite royals were slaughtered during a military coup d'état, and the Chalabis fled, first to Jordan, then to Britain. Chalabi reportedly still has a British passport.

The highly intelligent Chalabi enrolled at MIT at 16, where he earned a degree in mathematics. He then took a Ph.D. in math at the University of Chicago in 1969. (His thesis was "On the Jacobson Radical of a Group Algebra.") Despite these serious power-geek credentials, Chalabi has always been known as charming, worldly, and a skilled networker. While at Chicago, Chalabi met Albert Wohlstetter, an applied mathematician and one of the founders of the neoconservative movement. Wohlstetter introduced Chalabi to future movement leaders like Richard Perle and Paul Wolfowitz.

After earning his doctorate, Chalabi returned to the Middle East and became a math professor in Beirut. At the time Beirut was the peaceful financial center of the region, and in 1963 Chalabi's family had, along with some local partners, started Mebco, or the Middle East Banking Corp. It was run by Chalabi's brother Jawad. They had also established a Swiss financial company, Socofi, in 1954, as well as a Swiss subsidiary of MEBCO.

As Ahmed Chalabi has told the story, the Jordanian Hashemite crown prince, Hassan bin Talal, persuaded him to start the Petra Bank in Jordan in 1977. Chalabi's associates say the family had given the Jordanian Hashemites some of the assassinated Iraqi Hashemites' overseas assets after the 1958 coup, which no doubt helped smooth the way. The Chalabi family's other banking and financial companies provided further support.

Just after the overthrow of the Shah of Iran, Chalabi seems to have first established his ties with the Iranian Shia theocracy. The new Islamic Republic turned on the shah's former allies in Israel with a vengeance. The Iranian regime set up a substantial intelligence and political apparatus in Lebanon, among the oppressed local Shia.

One of the key Shia institutions in Lebanon was MEBCO in Beirut, which by the 1980s had become a banker for the Shia Amal militia. Amal and Hezbollah were the principal private armies in Lebanon tied to the regime in Iran. Chalabi was placing Petra depositors' money with MEBCO in those years; by the time Petra collapsed in 1989, bank auditors found, the equivalent of $41 million in transactions with MEBCO were on the books. "All the Lebanese banks were divided between political parties and factions," says Hassan Abdul Aziz, a former director at Petra Bank. "MEBCO bank was no different. All the Shia were close to Iran emotionally or otherwise." A former CIA case officer in Lebanon has a less sympathetic view. "This was basically funding a civil war, which meant murders, assassinations, and blowing up Israelis. MEBCO was putting their chips on every square." Iran and the Shite militias were not the only violent elements destabilizing Lebanon in the '70s and '80s, of course. The bloody Israeli invasions of Lebanon, along with later punitive expeditions, inflamed the Shia and other Lebanese.

But Lebanon was not the only venue for the Chalabi family's flexible and innovative approach to international finance. This may come as a surprise to some of Ahmed Chalabi's newer friends, but he helped finance Saddam Hussein's trade with Jordan during the 1980s. Specifically, Chalabi helped organize a special trading account for Iraq at the Jordanian central bank. Due to the problems created by the war with Iran, Saddam Hussein was unable to obtain credit on normal terms. The special account with the Jordanians allowed him to swap oil for necessary imports -- at least Saddam thought they were necessary -- without going through the international credit system. As Hassan Abdul Aziz explains, "Petra was the first to give letters of credit to Iraq, which they did for 23 months before Banco del Lavoro did in 1984. (The Banco del Lavoro scandal involved the provision of U.S. government commodities loans to buy arms for Saddam Hussein.) By 1986 Jordan had $1 billion in annual trade with Iraq this way, and Petra Bank had 50% of the market." It makes the neocons' insistence that Saddam was behind Petra's fall -- and Chalabi's conviction for embezzling and fraud -- even less credible.

After Petra was seized by the Jordanian authorities in August 1989, Chalabi fled Jordan in the trunk of Crown Prince Hassan's car. Chalabi and his family were still wealthy, despite the collapse of their banking empire, but his career in Middle East banking was over. He was now a double exile, from Jordan as well as Iraq, comfortably ensconced in London. Just a year after his fall, though, Saddam Hussein invaded Kuwait. When the subsequent Gulf War weakened but did not topple Saddam, a new possibility beckoned: the return of the Chalabi family to power in Iraq.

Like many people in the Middle East, Ahmed Chalabi may have had the image of the CIA as an all-knowing organization of worldwide puppet masters. If so, he soon learned otherwise. But in the early 1990s the CIA looked like a good prospect to sponsor an anti-Saddam Iraqi exile movement. At the same time, though, Chalabi was also looking to the Islamic regime in Iran for help.

Chalabi and some fellow exiles founded the Iraqi National Congress in 1992. The INC was largely funded by the CIA, which provided part of its support through the Rendon Group, a Washington public relations company that also does international political work for the Department of Defense. The CIA's support for the INC paid for two radio stations, various propaganda operations, and training camps in northern Iraq for Iraqi army defectors. (Northern Iraq, controlled by various Kurdish factions and protected by U.S. air cover, was a safe haven for Iraqi dissidents along with U.S. and allied intelligence operators.)

While Chalabi was perfectly willing to take the CIA's money, he quickly learned that it had become an ineffectual, self-obsessed bureaucracy. "He had absolute, total disdain for D.C.," says one of his former case officers in northern Iraq. "He looked at the Agency, and Rendon, and they flashed incompetence."

The case officer doesn't know precisely when Chalabi developed a deep relationship with the Iranian clerical regime, but it was in place when Chalabi was in northern Iraq in the early '90s. As the case officer recounts it, "He was given safe houses and cars in northern Iraq, and was letting them be used by agents from the Iranian Ministry of Intelligence and Security [Vevak], and the Iranian Revolutionary Guard Corps. At one point he tried to broker a meeting between the CIA and the Iranians."

The same officer says from time to time Chalabi would offer him "intelligence," which the officer would turn down. "I knew it wasn't any good, and he knew I knew. He took the refusal in good humor. We had a good relationship. I like him."

The CIA's relationship with Chalabi came to an end after a failed offensive in March 1995 against Saddam's forces by the small group of INC exiles and the militia of the Patriotic Union of Kurdistan. The CIA had withdrawn the support it had initially offered for the offensive, in what looks like a classic conflict between field officers and desk officers. Chalabi left northern Iraq the next month, and the CIA cut off its funding for the INC. It was at this time that Chalabi turned his attention to the American neoconservatives. The neocons were deeply disturbed by the Israeli government's "land for peace" negotiations with the Palestinians. The usefulness of the West Bank for "defense in depth" was less important than it would have been from the '40s to the '70s, given the increase in Israel's relative technological and military advantage over the Arabs. However, the idea of giving up what Israel's right-wing Likud leaders and some of the neocons themselves believed to be Israel's God-given lands on the West Bank of the Jordan River was anathema to them. The solution to Israel's strategic dilemma, in their view, was to somehow change the Arab governments.

The neoconservative strategy for Israel was laid out in a 1996 paper called "A Clean Break: A New Strategy for Securing the Realm," issued by the Institute for Advanced Strategic and Political Studies in Jerusalem (but written by Americans). The principal authors for the paper were Douglas Feith, then a lawyer with the Washington and Jerusalem firm of Feith and Zell, and Richard Perle, who until last year was the chairman of the Defense Policy Board, an advisory committee for Defense Secretary Rumsfeld

In the section on Iraq, and the necessity of removing Saddam Hussein, there was telltale "intelligence" from Chalabi and his old Jordanian Hashemite patron, Prince Hassan: "The predominantly Shi'a population of southern Lebanon has been tied for centuries to the Shi'a leadership in Najaf, Iraq, rather than Iran. Were the Hashemites to control Iraq, they could use their influence over Najaf to help Israel wean the south Lebanese Shi'a away from Hizbollah, Iran, and Syria. Shi'a retain strong ties to the Hashemites." Of course the Shia with "strong ties to the Hashemites" was the family of Ahmed Chalabi. Perle, Feith and other contributors to the "Clean Break" seemed not to recall the 15-year fatwa the clerics of Najaf proclaimed against the Iraqi Hashemites. Or the still more glaring fact, pointed out by Rashid Khalidi in his new book "Resurrecting Empire," that Shiites are loyal only to descendants of the prophet Muhammad's son-in-law, Ali, and reject all other lineages, including the Hashemites. As Khalidi caustically notes, "Perle and his colleagues were here proposing the complete restructuring of a region whose history and religion their suggestions reveal they know hardly anything about." In short, the Iraqi component of the neocons "new strategy" was based on an ignorant fantasy of prospective Shia support for ties with Israel.

For Ahmed Chalabi, the neoconservatives' support was the key to getting Washington on his side. And Chalabi's leadership, in turn, was key to the neocons' support for the INC. Perle and Feith, along with future Bush administration officials Paul Wolfowitz and Donald Rumsfeld, signed the February 1998 "open letter" to President Clinton, in which they listed nine policy steps that were in the "vital national interest" of the United States. The first of these was "Recognize a provisional government of Iraq based on the principles and leaders of the Iraqi National Congress (INC) that is representative of all the peoples of Iraq." In October 1998, under intense lobbying pressure from the neocons, Congress passed, and President Clinton signed, the "Iraqi Liberation Act," which provided money and U.S. legitimacy for Chalabi's INC, along with six other exile groups.

However, while Chalabi had proven himself as a lobbyist, if not a guerrilla leader, he had a continuous uphill battle with U.S. intelligence agencies, diplomats and the military, who never liked the INC's loose ways with the facts and taxpayer money. This meant that Chalabi had to constantly reinforce his countervailing support from the neoconservatives -- at least until they took power in the Bush administration in 2001, and squashed all dissonant internal voices on Chalabi. That's when Chalabi and his allies stepped up their planning for an American overthrow of Saddam Hussein. Behind the scenes, Chalabi was also detailing for the neoconservatives and their Israeli allies in the Likud party how the INC would take care of Israel.

One of the key promises he made concerned the revival of the Iraq-Israel oil pipeline. The pipeline from the oilfields of Kirkuk and Mosul to Haifa had been built by the British in the late 1920s, and was one of the main targets of the Palestinian Arab revolt in 1936-38. The 8-inch line was finally cut after Israel's independence in 1948. The sections in Arab territory have mostly rusted away or been carted off for scrap. The Israeli section is used as an irrigation pipe. The fully surveyed right of way, though, remains. It could handle a modern, 42-inch pipe, sufficient to supply the Haifa refinery.

With Chalabi's encouragement, the Israeli Ministry of National Infrastructure, which is responsible for oil pipelines, dusted off and updated plans for a new pipeline from Iraq. "The pipeline would be a dream," says Joseph Paritzky, the minister of national infrastructures. "We'd have an additional source of supply, and could even export some of the crude through Haifa. If we could build it, a pipeline would give us stable transport prices. Compare that to tankers; this year their price has almost tripled. We could also avoid problems such as strikes in our ports, which I've had to deal with. But we'd need a treaty with Iraq, and a treaty with Jordan to build the pipeline."

With Chalabi in power in Iraq, either in front or behind the scenes, L. Marc Zell confirms, the neocons were told there would be such a treaty with Iraq. "He promised that. He promised a lot of things."

Just after the U.S. takeover of Iraq, but before the establishment of the Governing Council of which Chalabi would be finance chair, Paritzky was lobbied by INC representatives in a meeting at the Dead Sea Marriott Hotel resort in Jordan. "We had a chitchat about it with the Iraqis, and with the Jordanians. But we couldn't go to the market and raise funds based on chitchat. We would have needed more to go on." Nevertheless, shortly afterward, on April 9, 2003, Paritzky announced a new technical appraisal of the pipeline.

The neocons in the Defense Department, such as Undersecretary of Defense for Policy Douglas Feith, were more optimistic about the pipeline project than Paritzky, who knew too much about the Middle East to be easily enthused by Chalabi's promises. The DOD neocons sent a telegram directly to the Israeli Foreign Ministry, violating protocol in bypassing the State Department, expressing interest and support for the pipeline project. The State Department had been told by the Jordanians that there would be no pipeline unless the Israelis reached a settlement with the Palestinians. The neocons didn't want to hear that. "If the government agreed to a pipeline without a Palestinian settlement," says a Jordanian official, "the monarchy would fall."

In the meantime, having used the neocons to get himself on the Governing Council, Chalabi appointed friends and relatives to key positions in the government. His nephew Salem (Sam) Chalabi, a lawyer, did much of the drafting of the interim constitution. Another nephew, Ali Allawi, was made minister of trade, with responsibility over foreign trade and investment in Iraq (he was later also named defense minister). Other Chalabi nominees went into the Central Bank, the Finance Ministry and the Oil Ministry.

But Chalabi had his eye on the bigger picture. The wealthy exile had visited Tehran before the war, in August 2002 and January 2003. On those trips he met with senior Iranian officials, and with Mohammed Bakr Al-Hakim, the leader of the Supreme Council for the Islamic Revolution in Iraq, the main Shia opposition group. The neoconservatives chose to overlook these visits to a member of the "Axis of Evil." It could be argued that there was no other way to liaise with Iraqi Shia leaders.

Then in December 2003, Chalabi went to Tehran to meet with Hasan Rohani, the head of Iran's Supreme National Security Council. At that meeting, Chalabi said, "The role of the Islamic Republic of Iran in supporting and guiding the opposition in their struggles against Saddam's regime in the past, and its assistance toward the establishment of security and stability in Iraq at present, are regarded highly by the people of Iraq."

U.S. intelligence agencies, along with leading neocons, began to look again at just who Chalabi's real friends might be, especially since Iranian intelligence agents from his old friends at Vevak were known to be active in Iraq. Also, the Israelis began to notice that Chalabi's old promises had been forgotten.

"I just got the bid papers for a $145 million highway project that were put out by the Iraqis, and they had the Israeli boycott language in them," an Israeli in Baghdad told me in March. "Chalabi promised the boycott would be over."

Ali Allawi, the Chalabi nephew in charge of the Ministry of Trade, and now also the minister of defense, calls trade with Israel "a non-starter. We aren't plugged into that network, and as far as I'm concerned they sell things we don't need. As for the boycott. I don't care. What's the matter with it? The U.S. boycotts Cuba, and nobody says anything about it.

"Our future is more to the east, with Iran, and to the south, with the Gulf states. Iran has natural geographic ties to Iraq. I'm not interested in what those neoconservatives at the (Coalition Provisional Authority) have to say about Iran. We don't have sufficient port capacity, for example. We should use the Iranian ports and roads. Iraq should have fundamental economic and trade relations with Iran, and Turkey, as long as they reciprocate, and I think they will." He dismissed the Mosul-Haifa pipeline with a wave of his hand.

Nabil Al Moussa, the deputy minister of planning for the Oil Ministry, confirmed Allawi's position. Asked whether the ministry had any plans for rebuilding the pipeline to Israel, his previous professional courtesy went out the window. "Absolutely not, and never! Don't ever ask us if we will sell oil to Israel, because we never will!"

Told of Allawi's and Al Moussa's reaction, Joseph Paritzky was philosophical, and a little contemptuous of his would-be neocon benefactors. "How naive can these Americans be? What, they thought they had a deal? Didn't they notice they were in the Middle East?" A neocon's reaction to Paritzky was characteristic: "He's a populist asshole who should have kept his mouth shut." But Paritzky obviously understood Middle Eastern politics far better than the neocons.

While the neocons felt they could ignore negative reports on Chalabi from the CIA, the State Department and other bureaucratic enemies, they have a harder time dismissing what comrades like Marc Zell have to say. Nevertheless, for the time being, many are sticking to the Bush strategy of staying on message and never admitting to mistakes. For example, last week, Michael Ledeen, a leading neocon at the American Enterprise Institute, complained in the National Review Online about "the cascade of anti-Chalabi leaks from his many mortal enemies at the Department of State and the Central Intelligence Agency." Changing the message is painful. As one neocon says: "The worst part of all this [Chalabi's betrayal] is that it will be embarrassing to my friends in the Pentagon."

Defense minister Allawi doubts that the neocons will be able to prevail in their plan to replace Shia dominance in the new Iraq with the Sunni-Kurdish coalition. "This is the last stand of the neocons, I think. The U.S. does have a new policy, which is to find a way to leave. That plan isn't the way to do it. I hear Condi Rice's office opposes the idea, and so does Ambassador Negroponte."

"We really don't have any choice," says a former intelligence officer and West Pointer in Iraq. "We have to make a deal, though we probably don't have to deal with Iran directly. We can make it through the Shia clergy in Iraq."

Allawi dismisses Feith and the neocons and what he calls "their grandiose schemes," but adds, "The neocons still have some influence, partly because they have good ties with the Kurds. And Sharon is still the 840-pound gorilla for U.S. policy."

Clearly the neocons are now in the process of retreating and regrouping. The consensus they'd forged among themselves on Iraq policy has dissolved. The massive plans for the democratization of the Middle East are heading for the recycling bin. Meanwhile, Chalabi's hopes for playing a leadership role in Iraq appear to be gone, although the crafty businessman's ability to resurrect himself from the dead should not be underestimated. It should also be noted that Chalabi family members continue to wield power in Iraq, and will likely continue to. For example, defense minister Allawi insists that he is not "in my uncle's entourage. Instead I travel alongside him." The remark can be interpreted to mean that he doesn't take orders from his uncle, and yet they are still close. Allawi has had a rather more conventional business career than that of his uncle, which has helped his political position in Iraq. While an early investor in Petra Bank, he soon parted company with his uncle and the other partners. He went on to become a successful and respectable portfolio manager in London before returning to Iraq last year.

In the end, despite the neocons' best hopes, Iran has emerged as crucial to the administration's desire for a political settlement in Iraq. Governments in the neighboring countries have taken notice of the neocons' big blunder. "The Iranians have proven to be absolutely brilliant in all of this," says a well-connected Jordanian. "They're showing that they're going to be the ones to win this one, and they'll do it with American money and lives."

For his part, Allawi praises what he sees as the U.S. military's new realism about the need for what he calls "a cold peace" with Iran. "There is no way to have stability in Iraq without Iran," he insists. "The U.S. military has been very correct in its contact with Iran at the border, and has never violated the unwritten agreement."

The neocons' Iraq triumph of last year has turned to ashes. Their Likud allies in Israel are bitterly split over Prime Minister Ariel Sharon's plans for the settlements in the territories. They have a coldly hostile Iraqi government coming in the near future. The clerical regime they loathe in Iran has dramatically improved its strategic position. Some of them must be rueing the day they met Ahmed Chalabi, who told them the fairy tales they wanted to hear.

About the writer John Dizard is a columnist for the Financial Times.

[url=http://fairuse.1accesshost.com/news1/salon8.html]http://fairuse.1accesshost.com/news1/salon8.html[/url]


il ragno

2004-05-05 10:10 | User Profile

[QUOTE]"He said he would end Iraq's boycott of trade with Israel, and would allow Israeli companies to do business there. He said [the new Iraqi government] would agree to rebuild the pipeline from Mosul [in the northern Iraqi oil fields] to Haifa [the Israeli port, and the location of a major refinery]." [/QUOTE]

Had Chalabi made good on these two promises - [I]voila[/I]! "Freedom" would have been restored to Iraq. No matter how much sectarian chaos and violence accompanied the "liberation".

[QUOTE]Chalabi's ties to Iran -- Israel's most dangerous enemy -- have also alarmed both his allies and his enemies in the Bush administration. [/QUOTE]

Whoops. Y'left out the modifier "now", fellas: "--[I]now [/I] Israel's most dangerous enemy--". Somehow, though, I get the feeling that - if we can ever extricate our asses out of Baghdad - we'll be out of the [I]freedom-bringing[/I] business for a while, no matter who the New Hitler in Tehran might happen to be.

[QUOTE]The neocons have bigger problems than Chalabi. As the intellectual architects of an "easy" war gone bad, they stand to pay the price. [/QUOTE]

I'll believe it when I see it. Only been one Western leader this century with the backbone to demand that the price be paid, and we've been conditioned to two-minute-hating that guy for 60-odd years now. Considering that those now in power have been wholly co-opted by these people, it's gonna require twice as much backbone as before. Who do you figure is out there who can meet that requirement? Bush? Kerry? Tony Blair?

[QUOTE]Bush political mastermind Karl Rove is said to be determined that Wolfowitz move on before the November election, [B]even if he comes back in a second Bush term. Sources say one of the positions being suggested is the director of Central Intelligence. [/B] [/QUOTE]

See? What did I tell you? Any 'price' paid will be purely for show....then the fix goes right back in. The only party that will end up paying (besides the Arabs) will be the usual suspects: US.


Scott Paine

2004-05-05 10:20 | User Profile

Great article, I'm surprised that they allowed it out. I'm not being a smart-ass when I say that it's dangerous to assume an enemy is stupid, even when they falter. Always treacherous and usurous, you know that they have a legion of think-tankers working up a cascade of alternate scenarios. Their greed is limitless, and they will distort anything they need to.

Has anyone published a list of ALL tribe-controlled & owned companies yet? Consumer goods, services, subsidiaries, everything.

True to motive, Isreal wants control and a piece of the oil action; the sole distributors for what amounts to 11% of the world oil supply. That pipeline would be hell to protect. They'd need a large, host military to exploit for protection...

and speaking of boycotting Isreal... [url="http://www.inminds.co.uk/boycott-brands.html"][color=#800080]http://www.inminds.co.uk/boycott-brands.html[/color][/url]


il ragno

2004-05-05 10:28 | User Profile

[QUOTE]Has anyone published a list of ALL tribe-controlled & owned companies yet? Consumer goods, services, subsidiaries, everything. [/QUOTE]

Hello there, Scott. I'm not sure there's enough [I]bandwidth [/I] to tackle your request.


Sertorius

2004-05-05 11:24 | User Profile

Scott,

I'm glad you liked it. It added to my knowlege as well.

Let me rephrase myself, please. When I use the word "stupid" I mean in the sense of foreign policy. When it comes to taking advantage of an ignorant electorate I think the word "cunning" fits them.

One thing I was impressed with was the claim that certain members of the Armed Forces are trying to get rid to the two biggest disasters in Ft. Fumble. It would seem that maybe they have a way to neuter Rumsfeld. I know that a lot of the higher command dispises him. I'm not happy at all of the idea of making Wolfowitz head of the C.I.A., though, in this case I'll say he probably by now knows a lot about intelligence, having been bilked by an obvious fraud like Chalabi. If they put him there they might as well save some money and let the present head of the Mossad wear to hats and run things for it will be the same thing.

As for that pipeline, by the time the Iraqis got through with that it would have more holes than swiss cheese.


Scott Paine

2004-05-07 08:21 | User Profile

[QUOTE=Sertorius] ... maybe they have a way to neuter Rumsfeld. I know that a lot of the higher command dispises him. I'm not happy at all of the idea of making Wolfowitz head of the C.I.A., ... they might as well save some money and let the present head of the Mossad wear two hats and run things, for it will be the same thing. [/QUOTE]Is Wolfowitz truly in queue for CIA chief? They have the helm on US foreign policy already, so what are the motives? (besides the usual one; proximity to the seat of power)

Using immuno-response as a working analogy, consider this: the 'tribe' agencies seem to be in a greater state of (panic?) because of the worldwide surge in awareness of/resistance to them. [adl.org et al]

They are in a mighty rush to encode their 'anti-defamation' laws & other protections worldwide, hoping that they can use laws they design to protect them from retaliation from within their hosts. Since the CIA now has even broader power to scour and (presumably) manipulate their host population, it follows that they'd want top-down access to preempt the further development of any real, structured response to them.

Are we (here & everywhere) being cautious enough? Does it matter at this point?


Oklahomaman

2004-05-07 23:31 | User Profile

If this story happens to be true, my personal opinion of Chalabi will have increase several orders of magnitute. A gentile, Arab no less, out jewing the neocons! I don't believe it is though.

The neocons are looking for a few good fall guys -- Chalabi happens to be one of them. It's-everyone's-fault-but-mine posturing. Sure, he probably acted as stated in the article but the war in Iraq would have happened in the absence of Chalabi. Had he told the truth, the neocons would have simply choosen someone else to tell them what they wanted to hear.

As for Chalabi, he simply saw political opportunity in relentless neocon warmongering and rode it to accomplish some of his own personal goals. Now those goals are obtained, Chalabi feels neither loyalty nor obligation to the principals that helped him to power. Sounds a lot like the [I]modus operandi [/I] of a certain Jewish clique composed of "former" Trotskyites back in the 50's. Does it not?


Peter Phillips

2004-05-22 10:40 | User Profile

[size=6]How Ahmed Chalabi Conned the Neocons [/size][size=3]The hawks who launched the Iraq war believed the deal-making exile when he promised to build a secular democracy with close ties to Israel. Now the Israel deal is dead, he's cozying up to Iran -- and his patrons look like they're on the way out. A Salon exclusive.[/size]


By John Dizard

May 4, 2004 | When the definitive history of the current Iraq war is finally written, wealthy exile Ahmed Chalabi will be among those judged most responsible for the Bush administration's decision to invade Iraq and topple Saddam Hussein. More than a decade ago Chalabi teamed up with American neoconservatives to sell the war as the cornerstone of an energetic new policy to bring democracy to the Middle East -- and after 9/11, as the crucial antidote to global terrorism. It was Chalabi who provided crucial intelligence on Iraqi weaponry to justify the invasion, almost all of which turned out to be false, and laid out a rosy scenario about the country's readiness for an American strike against Saddam that led the nation's leaders to predict -- and apparently even believe -- that they would be greeted as liberators. Chalabi also promised his neoconservative patrons that as leader of Iraq he would make peace with Israel, an issue of vital importance to them. A year ago, Chalabi was riding high, after Saddam Hussein fell with even less trouble than expected.

Now his power is slipping away, and some of his old neoconservative allies -- whose own political survival is looking increasingly shaky as the U.S. occupation turns nightmarish -- are beginning to turn on him. The U.S. reversed its policy of excluding former Baathists from the Iraqi army -- a policy devised by Chalabi -- and Marine commanders even empowered former Republican Guard officers to run the pacification of Fallujah. Last week United Nations envoy Lakhdar Brahimi delivered a devastating blow to Chalabi's future leadership hopes, recommending that the Iraqi Governing Council, of which he is finance chair, be accorded no governance role after the June 30 transition to sovereignty. Meanwhile, administration neoconservatives, once united behind Chalabi and the Iraqi National Congress he founded, are now split, as new doubts about his long-stated commitment to a secular Iraqi democracy with ties to Israel, and fears that he is cozying up to his Shiite co-religionists in Iran, begin to emerge. At least one key Pentagon neocon is said to be on his way out, a casualty of the battle over Chalabi and the increasing chaos in Iraq, and others could follow.

"Ahmed Chalabi is a treacherous, spineless turncoat," says L. Marc Zell, a former law partner of Douglas Feith, now the undersecretary of defense for policy, and a former friend and supporter of Chalabi and his aspirations to lead Iraq. "He had one set of friends before he was in power, and now he's got another." While Zell's disaffection with Chalabi has been a long time in the making, his remarks to Salon represent his first public break with the would-be Iraqi leader, and are likely to ripple throughout Washington in the days to come.

Zell, a Jerusalem attorney, continues to be a partner in the firm that Feith left in 2001 to take the Pentagon job. He also helped Ahmed Chalabi's nephew Salem set up a new law office in Baghdad in late 2003. Chalabi met with Zell and other neoconservatives many times from the mid-1990s on in London, Turkey, and the U.S. Zell outlines what Chalabi was promising the neocons before the Iraq war: "He said he would end Iraq's boycott of trade with Israel, and would allow Israeli companies to do business there. He said [the new Iraqi government] would agree to rebuild the pipeline from Mosul [in the northern Iraqi oil fields] to Haifa [the Israeli port, and the location of a major refinery]." But Chalabi, Zell says, has delivered on none of them. The bitter ex-Chalabi backer believes his former friend's moves were a deliberate bait and switch designed to win support for his designs to return to Iraq and run the country.

Chalabi's ties to Iran -- Israel's most dangerous enemy -- have also alarmed both his allies and his enemies in the Bush administration. Those ties were highlighted on Monday, when Newsweek reported that "U.S. officials say that electronic intercepts of discussions between Iranian leaders indicate that Chalabi and his entourage told Iranian contacts about American political plans in Iraq." According to one government source, some of the information he gave Iran "could get people killed." A Chalabi aide denied the allegation. According to Newsweek, the State Department and the CIA -- Chalabi's longtime enemies -- were behind the leak: "the State Department and the CIA are using the intelligence about his Iran ties to persuade the president to cut him loose once and for all."

But the neocons have bigger problems than Chalabi. As the intellectual architects of an "easy" war gone bad, they stand to pay the price. The first to go may be Zell's old partner Douglas Feith. Military sources say Feith will resign his Defense Department post by mid-May. His removal was reportedly a precondition imposed by Ambassador to the U.N. John Negroponte when he agreed to take over from Paul Bremer as the top U.S. official in Iraq. "Feith is on the way out," Iraqi defense minister (and Chalabi nephew) Ali Allawi says confidently, and other sources confirm it. Feith's boss, Undersecretary of Defense Paul Wolfowitz, may follow. Bush political mastermind Karl Rove is said to be determined that Wolfowitz move on before the November election, even if he comes back in a second Bush term. Sources say one of the positions being suggested is the director of Central Intelligence.

In part, the White House political crew is reacting to pressure from the uniformed military, which is becoming a quiet but effective enemy of the neocons. The White House seems to be performing triage to save the political capital of Defense Secretary Donald Rumsfeld and Vice President Dick Cheney, Iraq hawks who have close ties to the neocons. "Rumsfeld and Cheney stay," says an Army officer. "Powell has his guy Negroponte in there. But the neocons are losing power day by day."

Why did the neocons put such enormous faith in Ahmed Chalabi, an exile with a shady past and no standing with Iraqis? One word: Israel. They saw the invasion of Iraq as the precondition for a reorganization of the Middle East that would solve Israel's strategic problems, without the need for an accommodation with either the Palestinians or the existing Arab states. Chalabi assured them that the Iraqi democracy he would build would develop diplomatic and trade ties with Israel, and eschew Arab nationalism.

Now some influential allies believe those assurances were part of an elaborate con, and that Chalabi has betrayed his promises on Israel while cozying up to Iranian Shia leaders. Whether because of intentional deception or a realistic calculation of what the Iraqi people will accept, it's clear that Chalabi won't be delivering on his bright promises to ally a democratic Iraq with Israel. Had the neocons not been deluded by gross ignorance of the Arab world and blinded by wishful thinking, they would have realized that the chances that Chalabi or any other Iraqi leader could deliver on such promises were always remote. In fact, they need have looked no further than the Israeli media: A long piece in Israel's Jerusalem Report magazine published nine days before the war began last year featured Israelis who dismissed Chalabi's promises about Israel as a political ploy, "a means by which to appeal to the Jewish lobby and, in turn, the administration."

"Chalabi has no use for Israel. He knew all along that this was a nonstarter," says Robert Baer, a former CIA field officer who led covert U.S. operations inside Iraq in the mid-1990s aimed at toppling Saddam. "Chalabi knows exactly what Israel stands for in Iraq and in Iran, with or without Saddam. The idea of building the pipeline to Haifa, or rapprochement with Iran ... I'm sure he told [the neocons] these things could happen, that he played to their prejudices and said, 'This is the new Middle East,' but he didn't believe any of it. That's the way Chalabi operates."

"He was willing to ally with anyone to get where he is now, whether it was the neocons, the Israelis or the Iranians," adds Baer. "He wanted back into Iraq and nothing was going to stop him."

It could have been predicted that Chalabi would want to deal with Israel's enemies in Iran. He and his relatives have made that clear. As Iraq's defense minister, Ali Allawi, says, "We have a lot of problems in common with Iran. If we could involve them in a regional security agreement with us, that would be very fruitful." Still, Chalabi's visit to Iran last December and his repeated assertions that peace in Iraq requires peace with Iran first alarmed, then embittered, his old friends.

Chalabi's neoconservative friends, however, seem to have looked away from evidence that the businessman has always allied himself with whomever can help him the most. In the 1980s, Chalabi's scandal-plagued Petra Bank funneled money to Amal, a Shia militia allied with Iran in Lebanon. And according to a former CIA case officer who worked in Iraq, Chalabi had close ties to the Iranian regime when he was in Kurdish Northern Iraq in the mid-1990s trying to foment resistance to Saddam. He even dealt with Saddam himself when the price was right, and initiated a method to finance the dictator's trade with Jordan in the 1980s through his Petra Bank.

Chalabi's Arab admirers say they knew he'd never make good on his promises to ally with Israel. "I was worried that he was going to do business with the Zionists," confesses Moh'd Asad, the managing director of the Amman, Jordan-based International Investment Arabian Group, an industrial and agricultural exporter, who is one of Chalabi's Palestinian friends and business partners. "He told me not to worry, that he just needed the Jews in order to get what he wanted from Washington, and that he would turn on them after that."

Ahmed Chalabi refused to speak to Salon. He has denounced U.N. envoy Brahimi as an "Arab nationalist" and compared the U.S. decision to bring back some former Iraqi soldiers to "allowing Nazis into the German government immediately after World War II." Douglas Feith, Chalabi's longtime ally and sponsor, also declined a request for an interview. Nevertheless, the outline of the new conflict between the Shiite former exile and his erstwhile sponsors is clear, based on interviews with Iraqi officials, U.S. military personnel and intelligence officers, and politically connected Israelis.

The crux of the conflict is Iran, and whether the U.S. should try to make a deal with the Islamic Republic to enlist its support for peace in Iraq. Before and immediately after the war, the neoconservative position was that U.S. empowerment of the long-disenfranchised Shia community would make possible an Iraqi government that would make a "warm peace" with Israel. This in turn would pressure the rest of the Arab world to make a similar peace, without the need to concede land to the Palestinians.

This was, of course, a pipe dream: The Shia community in Iraq, like the Sunni community, is overwhelmingly anti-Israel, and the entire range of its leadership has close ties with Iran. Belatedly realizing that Chalabi's promise to build a secular, pro-Israel Shiite government is not going to come true, in the past couple of months the neocons in the Defense Department have tried to come up with a new plan. Feith, Wolfowitz and others are backing away from the Shia, due to their ties to Iran as well as Chalabi's deceptions. They are trying to cobble together a coalition of rehabilitated Sunni Muslim Iraqi Army officers and Kurdish leaders backed by their militias that would have Shia participation, but in a reduced role. For proponents of this strategy, the front-runner to be prime minister of the next version of the transitional government is Kurdish leader Jalal Talabani, the founder and leader of the Patriotic Union of Kurdistan.

This policy has very little support. It's opposed by those neocons who still back Ahmed Chalabi and his Shia allies -- including influential former Defense Policy Board chair Richard Perle, along with neocon intellectuals Michael Ledeen, Bernard Lewis and Barbara Lerner. Although they like Talabani, they oppose the tilt toward the Sunnis, and some are still adamant that Chalabi play a role. "He's effective in bringing groups of Iraqis together, something he's done for many years," Perle said on CNN on March 28. "He believes in democracy. I have complete confidence in him, and I hope the people of Iraq are wise enough to see his benefits."

The shift in strategy toward Talabani is also being dismissed, for different reasons, by National Security Advisor Condoleezza Rice, Secretary of State Colin Powell, John Negroponte, the new ambassador to Iraq, and the uniformed military. They look at the Iraqi population statistics, which show a Shia majority; a map of the country, which shows a long, hard-to-defend border with Iran; and the U.S. military order of battle, which shows overstretched armed forces, and conclude there cannot be a stable Iraqi government that isn't led by the majority Shia.

Even the Kurds have their doubts about the new rise in their standing with the neocons. Richard Galustian, a British security contractor in Iraq who works closely with the Kurdish authorities, says, "The political elevation of the Kurds within Iraq will be very unpopular with other Iraqis, and will be treated with caution by the Kurdish leaders themselves. Many will be skeptical of the ability of the U.S. administration to sustain and remain consistent in any new relationships." If the Americans can turn on the Shia, the reasoning goes, why couldn't they later turn on the Kurds?

President Bush's ability to impose order on this mess is not obvious, and he doesn't have more than a couple of weeks to figure out a solution. With photographs of U.S. troops torturing and abusing Iraqi prisoners inflaming the Arab world, U.S. casualties soaring, the June 30 date to turn over sovereignty looming and no exit strategy in sight, Bush's Iraq adventure has turned into a deadly mess that seems certain to make the U.S. more at risk from terrorism, not less. Bush brought this trouble on himself by buying into the neocons' interpretation of the dynamics of the Middle East, and into Ahmed Chalabi's plans for Iraq -- maybe most disastrously by buying Chalabi's assurances that a secular government dominated by Israel-friendly Shia was possible. If Bush and the neocons wanted to know about Chalabi's real deal-making nature, the signs were there for them to read. But they didn't want to know.

Chalabi appears to have recognized that the neocons, while ruthless, realistic and effective in bureaucratic politics, were remarkably ignorant about the situation in Iraq, and willing to buy a fantasy of how the country's politics worked. So he sold it to them.

Ahmed Chalabi's family, Shia Muslims from Kut in southern Iraq, has a tradition of working with occupation governments, starting with the regime of the Ottoman Turks in 1638. Chalabi's father, Abdul Haydi Chalabi, was a member of the council of ministers of King Faisal II, whose short-lived Hashemite dynasty was installed by the British in 1921. He was also president of the Iraqi Senate created by the Hashemites.

The Hashemites are Sunni Muslim nobility, originally from a region in today's Saudi Arabia. While they lost their leading position in the Arabian peninsula to the Al Sa'ud family, they were successfully installed as monarchs in both Jordan and Iraq with British support. The Jordanian Hashemites found a base of support in the local Bedouin tribes, and retain power to this day. The Iraqi Hashemite branch, though, was strongly opposed by the local Shia Muslim ayatollahs from the beginning. So in 1922 the Iraqi Shia religious leaders in Najaf issued a fatwa, or decree, forbidding observant Shia from supporting the Hashemites. The Chalabi family wasn't deterred, though. They were among the few Shia to defy the fatwa and support the British-imposed dynasty. They were rewarded with royal patronage, and wound up controlling the flour milling industry in Baghdad and Basra. The fatwa was finally lifted in 1937, and by then the Chalabis had made a fortune.

Ahmed Chalabi was born in 1944. His family reached the peak of its wealth and influence during his childhood. In 1958, though, the Hashemite royals were slaughtered during a military coup d'état, and the Chalabis fled, first to Jordan, then to Britain. Chalabi reportedly still has a British passport.

The highly intelligent Chalabi enrolled at MIT at 16, where he earned a degree in mathematics. He then took a Ph.D. in math at the University of Chicago in 1969. (His thesis was "On the Jacobson Radical of a Group Algebra.") Despite these serious power-geek credentials, Chalabi has always been known as charming, worldly, and a skilled networker. While at Chicago, Chalabi met Albert Wohlstetter, an applied mathematician and one of the founders of the neoconservative movement. Wohlstetter introduced Chalabi to future movement leaders like Richard Perle and Paul Wolfowitz.

After earning his doctorate, Chalabi returned to the Middle East and became a math professor in Beirut. At the time Beirut was the peaceful financial center of the region, and in 1963 Chalabi's family had, along with some local partners, started Mebco, or the Middle East Banking Corp. It was run by Chalabi's brother Jawad. They had also established a Swiss financial company, Socofi, in 1954, as well as a Swiss subsidiary of MEBCO.

As Ahmed Chalabi has told the story, the Jordanian Hashemite crown prince, Hassan bin Talal, persuaded him to start the Petra Bank in Jordan in 1977. Chalabi's associates say the family had given the Jordanian Hashemites some of the assassinated Iraqi Hashemites' overseas assets after the 1958 coup, which no doubt helped smooth the way. The Chalabi family's other banking and financial companies provided further support.

Just after the overthrow of the Shah of Iran, Chalabi seems to have first established his ties with the Iranian Shia theocracy. The new Islamic Republic turned on the shah's former allies in Israel with a vengeance. The Iranian regime set up a substantial intelligence and political apparatus in Lebanon, among the oppressed local Shia.

One of the key Shia institutions in Lebanon was MEBCO in Beirut, which by the 1980s had become a banker for the Shia Amal militia. Amal and Hezbollah were the principal private armies in Lebanon tied to the regime in Iran. Chalabi was placing Petra depositors' money with MEBCO in those years; by the time Petra collapsed in 1989, bank auditors found, the equivalent of $41 million in transactions with MEBCO were on the books. "All the Lebanese banks were divided between political parties and factions," says Hassan Abdul Aziz, a former director at Petra Bank. "MEBCO bank was no different. All the Shia were close to Iran emotionally or otherwise." A former CIA case officer in Lebanon has a less sympathetic view. "This was basically funding a civil war, which meant murders, assassinations, and blowing up Israelis. MEBCO was putting their chips on every square." Iran and the Shite militias were not the only violent elements destabilizing Lebanon in the '70s and '80s, of course. The bloody Israeli invasions of Lebanon, along with later punitive expeditions, inflamed the Shia and other Lebanese.

But Lebanon was not the only venue for the Chalabi family's flexible and innovative approach to international finance. This may come as a surprise to some of Ahmed Chalabi's newer friends, but he helped finance Saddam Hussein's trade with Jordan during the 1980s. Specifically, Chalabi helped organize a special trading account for Iraq at the Jordanian central bank. Due to the problems created by the war with Iran, Saddam Hussein was unable to obtain credit on normal terms. The special account with the Jordanians allowed him to swap oil for necessary imports -- at least Saddam thought they were necessary -- without going through the international credit system. As Hassan Abdul Aziz explains, "Petra was the first to give letters of credit to Iraq, which they did for 23 months before Banco del Lavoro did in 1984. (The Banco del Lavoro scandal involved the provision of U.S. government commodities loans to buy arms for Saddam Hussein.) By 1986 Jordan had $1 billion in annual trade with Iraq this way, and Petra Bank had 50% of the market." It makes the neocons' insistence that Saddam was behind Petra's fall -- and Chalabi's conviction for embezzling and fraud -- even less credible.

After Petra was seized by the Jordanian authorities in August 1989, Chalabi fled Jordan in the trunk of Crown Prince Hassan's car. Chalabi and his family were still wealthy, despite the collapse of their banking empire, but his career in Middle East banking was over. He was now a double exile, from Jordan as well as Iraq, comfortably ensconced in London. Just a year after his fall, though, Saddam Hussein invaded Kuwait. When the subsequent Gulf War weakened but did not topple Saddam, a new possibility beckoned: the return of the Chalabi family to power in Iraq.

Like many people in the Middle East, Ahmed Chalabi may have had the image of the CIA as an all-knowing organization of worldwide puppet masters. If so, he soon learned otherwise. But in the early 1990s the CIA looked like a good prospect to sponsor an anti-Saddam Iraqi exile movement. At the same time, though, Chalabi was also looking to the Islamic regime in Iran for help.

Chalabi and some fellow exiles founded the Iraqi National Congress in 1992. The INC was largely funded by the CIA, which provided part of its support through the Rendon Group, a Washington public relations company that also does international political work for the Department of Defense. The CIA's support for the INC paid for two radio stations, various propaganda operations, and training camps in northern Iraq for Iraqi army defectors. (Northern Iraq, controlled by various Kurdish factions and protected by U.S. air cover, was a safe haven for Iraqi dissidents along with U.S. and allied intelligence operators.)

While Chalabi was perfectly willing to take the CIA's money, he quickly learned that it had become an ineffectual, self-obsessed bureaucracy. "He had absolute, total disdain for D.C.," says one of his former case officers in northern Iraq. "He looked at the Agency, and Rendon, and they flashed incompetence."

The case officer doesn't know precisely when Chalabi developed a deep relationship with the Iranian clerical regime, but it was in place when Chalabi was in northern Iraq in the early '90s. As the case officer recounts it, "He was given safe houses and cars in northern Iraq, and was letting them be used by agents from the Iranian Ministry of Intelligence and Security [Vevak], and the Iranian Revolutionary Guard Corps. At one point he tried to broker a meeting between the CIA and the Iranians."

The same officer says from time to time Chalabi would offer him "intelligence," which the officer would turn down. "I knew it wasn't any good, and he knew I knew. He took the refusal in good humor. We had a good relationship. I like him."

The CIA's relationship with Chalabi came to an end after a failed offensive in March 1995 against Saddam's forces by the small group of INC exiles and the militia of the Patriotic Union of Kurdistan. The CIA had withdrawn the support it had initially offered for the offensive, in what looks like a classic conflict between field officers and desk officers. Chalabi left northern Iraq the next month, and the CIA cut off its funding for the INC. It was at this time that Chalabi turned his attention to the American neoconservatives. The neocons were deeply disturbed by the Israeli government's "land for peace" negotiations with the Palestinians. The usefulness of the West Bank for "defense in depth" was less important than it would have been from the '40s to the '70s, given the increase in Israel's relative technological and military advantage over the Arabs. However, the idea of giving up what Israel's right-wing Likud leaders and some of the neocons themselves believed to be Israel's God-given lands on the West Bank of the Jordan River was anathema to them. The solution to Israel's strategic dilemma, in their view, was to somehow change the Arab governments.

The neoconservative strategy for Israel was laid out in a 1996 paper called "A Clean Break: A New Strategy for Securing the Realm," issued by the Institute for Advanced Strategic and Political Studies in Jerusalem (but written by Americans). The principal authors for the paper were Douglas Feith, then a lawyer with the Washington and Jerusalem firm of Feith and Zell, and Richard Perle, who until last year was the chairman of the Defense Policy Board, an advisory committee for Defense Secretary Rumsfeld

In the section on Iraq, and the necessity of removing Saddam Hussein, there was telltale "intelligence" from Chalabi and his old Jordanian Hashemite patron, Prince Hassan: "The predominantly Shi'a population of southern Lebanon has been tied for centuries to the Shi'a leadership in Najaf, Iraq, rather than Iran. Were the Hashemites to control Iraq, they could use their influence over Najaf to help Israel wean the south Lebanese Shi'a away from Hizbollah, Iran, and Syria. Shi'a retain strong ties to the Hashemites." Of course the Shia with "strong ties to the Hashemites" was the family of Ahmed Chalabi. Perle, Feith and other contributors to the "Clean Break" seemed not to recall the 15-year fatwa the clerics of Najaf proclaimed against the Iraqi Hashemites. Or the still more glaring fact, pointed out by Rashid Khalidi in his new book "Resurrecting Empire," that Shiites are loyal only to descendants of the prophet Muhammad's son-in-law, Ali, and reject all other lineages, including the Hashemites. As Khalidi caustically notes, "Perle and his colleagues were here proposing the complete restructuring of a region whose history and religion their suggestions reveal they know hardly anything about." In short, the Iraqi component of the neocons "new strategy" was based on an ignorant fantasy of prospective Shia support for ties with Israel.

For Ahmed Chalabi, the neoconservatives' support was the key to getting Washington on his side. And Chalabi's leadership, in turn, was key to the neocons' support for the INC. Perle and Feith, along with future Bush administration officials Paul Wolfowitz and Donald Rumsfeld, signed the February 1998 "open letter" to President Clinton, in which they listed nine policy steps that were in the "vital national interest" of the United States. The first of these was "Recognize a provisional government of Iraq based on the principles and leaders of the Iraqi National Congress (INC) that is representative of all the peoples of Iraq." In October 1998, under intense lobbying pressure from the neocons, Congress passed, and President Clinton signed, the "Iraqi Liberation Act," which provided money and U.S. legitimacy for Chalabi's INC, along with six other exile groups.

However, while Chalabi had proven himself as a lobbyist, if not a guerrilla leader, he had a continuous uphill battle with U.S. intelligence agencies, diplomats and the military, who never liked the INC's loose ways with the facts and taxpayer money. This meant that Chalabi had to constantly reinforce his countervailing support from the neoconservatives -- at least until they took power in the Bush administration in 2001, and squashed all dissonant internal voices on Chalabi. That's when Chalabi and his allies stepped up their planning for an American overthrow of Saddam Hussein. Behind the scenes, Chalabi was also detailing for the neoconservatives and their Israeli allies in the Likud party how the INC would take care of Israel.

One of the key promises he made concerned the revival of the Iraq-Israel oil pipeline. The pipeline from the oilfields of Kirkuk and Mosul to Haifa had been built by the British in the late 1920s, and was one of the main targets of the Palestinian Arab revolt in 1936-38. The 8-inch line was finally cut after Israel's independence in 1948. The sections in Arab territory have mostly rusted away or been carted off for scrap. The Israeli section is used as an irrigation pipe. The fully surveyed right of way, though, remains. It could handle a modern, 42-inch pipe, sufficient to supply the Haifa refinery.

With Chalabi's encouragement, the Israeli Ministry of National Infrastructure, which is responsible for oil pipelines, dusted off and updated plans for a new pipeline from Iraq. "The pipeline would be a dream," says Joseph Paritzky, the minister of national infrastructures. "We'd have an additional source of supply, and could even export some of the crude through Haifa. If we could build it, a pipeline would give us stable transport prices. Compare that to tankers; this year their price has almost tripled. We could also avoid problems such as strikes in our ports, which I've had to deal with. But we'd need a treaty with Iraq, and a treaty with Jordan to build the pipeline."

With Chalabi in power in Iraq, either in front or behind the scenes, L. Marc Zell confirms, the neocons were told there would be such a treaty with Iraq. "He promised that. He promised a lot of things."

Just after the U.S. takeover of Iraq, but before the establishment of the Governing Council of which Chalabi would be finance chair, Paritzky was lobbied by INC representatives in a meeting at the Dead Sea Marriott Hotel resort in Jordan. "We had a chitchat about it with the Iraqis, and with the Jordanians. But we couldn't go to the market and raise funds based on chitchat. We would have needed more to go on." Nevertheless, shortly afterward, on April 9, 2003, Paritzky announced a new technical appraisal of the pipeline.

The neocons in the Defense Department, such as Undersecretary of Defense for Policy Douglas Feith, were more optimistic about the pipeline project than Paritzky, who knew too much about the Middle East to be easily enthused by Chalabi's promises. The DOD neocons sent a telegram directly to the Israeli Foreign Ministry, violating protocol in bypassing the State Department, expressing interest and support for the pipeline project. The State Department had been told by the Jordanians that there would be no pipeline unless the Israelis reached a settlement with the Palestinians. The neocons didn't want to hear that. "If the government agreed to a pipeline without a Palestinian settlement," says a Jordanian official, "the monarchy would fall."

In the meantime, having used the neocons to get himself on the Governing Council, Chalabi appointed friends and relatives to key positions in the government. His nephew Salem (Sam) Chalabi, a lawyer, did much of the drafting of the interim constitution. Another nephew, Ali Allawi, was made minister of trade, with responsibility over foreign trade and investment in Iraq (he was later also named defense minister). Other Chalabi nominees went into the Central Bank, the Finance Ministry and the Oil Ministry.

But Chalabi had his eye on the bigger picture. The wealthy exile had visited Tehran before the war, in August 2002 and January 2003. On those trips he met with senior Iranian officials, and with Mohammed Bakr Al-Hakim, the leader of the Supreme Council for the Islamic Revolution in Iraq, the main Shia opposition group. The neoconservatives chose to overlook these visits to a member of the "Axis of Evil." It could be argued that there was no other way to liaise with Iraqi Shia leaders.

Then in December 2003, Chalabi went to Tehran to meet with Hasan Rohani, the head of Iran's Supreme National Security Council. At that meeting, Chalabi said, "The role of the Islamic Republic of Iran in supporting and guiding the opposition in their struggles against Saddam's regime in the past, and its assistance toward the establishment of security and stability in Iraq at present, are regarded highly by the people of Iraq."

U.S. intelligence agencies, along with leading neocons, began to look again at just who Chalabi's real friends might be, especially since Iranian intelligence agents from his old friends at Vevak were known to be active in Iraq. Also, the Israelis began to notice that Chalabi's old promises had been forgotten.

"I just got the bid papers for a $145 million highway project that were put out by the Iraqis, and they had the Israeli boycott language in them," an Israeli in Baghdad told me in March. "Chalabi promised the boycott would be over."

Ali Allawi, the Chalabi nephew in charge of the Ministry of Trade, and now also the minister of defense, calls trade with Israel "a non-starter. We aren't plugged into that network, and as far as I'm concerned they sell things we don't need. As for the boycott. I don't care. What's the matter with it? The U.S. boycotts Cuba, and nobody says anything about it.

"Our future is more to the east, with Iran, and to the south, with the Gulf states. Iran has natural geographic ties to Iraq. I'm not interested in what those neoconservatives at the (Coalition Provisional Authority) have to say about Iran. We don't have sufficient port capacity, for example. We should use the Iranian ports and roads. Iraq should have fundamental economic and trade relations with Iran, and Turkey, as long as they reciprocate, and I think they will." He dismissed the Mosul-Haifa pipeline with a wave of his hand.

Nabil Al Moussa, the deputy minister of planning for the Oil Ministry, confirmed Allawi's position. Asked whether the ministry had any plans for rebuilding the pipeline to Israel, his previous professional courtesy went out the window. "Absolutely not, and never! Don't ever ask us if we will sell oil to Israel, because we never will!"

Told of Allawi's and Al Moussa's reaction, Joseph Paritzky was philosophical, and a little contemptuous of his would-be neocon benefactors. "How naive can these Americans be? What, they thought they had a deal? Didn't they notice they were in the Middle East?" A neocon's reaction to Paritzky was characteristic: "He's a populist asshole who should have kept his mouth shut." But Paritzky obviously understood Middle Eastern politics far better than the neocons.

While the neocons felt they could ignore negative reports on Chalabi from the CIA, the State Department and other bureaucratic enemies, they have a harder time dismissing what comrades like Marc Zell have to say. Nevertheless, for the time being, many are sticking to the Bush strategy of staying on message and never admitting to mistakes. For example, last week, Michael Ledeen, a leading neocon at the American Enterprise Institute, complained in the National Review Online about "the cascade of anti-Chalabi leaks from his many mortal enemies at the Department of State and the Central Intelligence Agency." Changing the message is painful. As one neocon says: "The worst part of all this [Chalabi's betrayal] is that it will be embarrassing to my friends in the Pentagon."

Defense minister Allawi doubts that the neocons will be able to prevail in their plan to replace Shia dominance in the new Iraq with the Sunni-Kurdish coalition. "This is the last stand of the neocons, I think. The U.S. does have a new policy, which is to find a way to leave. That plan isn't the way to do it. I hear Condi Rice's office opposes the idea, and so does Ambassador Negroponte."

"We really don't have any choice," says a former intelligence officer and West Pointer in Iraq. "We have to make a deal, though we probably don't have to deal with Iran directly. We can make it through the Shia clergy in Iraq."

Allawi dismisses Feith and the neocons and what he calls "their grandiose schemes," but adds, "The neocons still have some influence, partly because they have good ties with the Kurds. And Sharon is still the 840-pound gorilla for U.S. policy."

Clearly the neocons are now in the process of retreating and regrouping. The consensus they'd forged among themselves on Iraq policy has dissolved. The massive plans for the democratization of the Middle East are heading for the recycling bin. Meanwhile, Chalabi's hopes for playing a leadership role in Iraq appear to be gone, although the crafty businessman's ability to resurrect himself from the dead should not be underestimated. It should also be noted that Chalabi family members continue to wield power in Iraq, and will likely continue to. For example, defense minister Allawi insists that he is not "in my uncle's entourage. Instead I travel alongside him." The remark can be interpreted to mean that he doesn't take orders from his uncle, and yet they are still close. Allawi has had a rather more conventional business career than that of his uncle, which has helped his political position in Iraq. While an early investor in Petra Bank, he soon parted company with his uncle and the other partners. He went on to become a successful and respectable portfolio manager in London before returning to Iraq last year.

In the end, despite the neocons' best hopes, Iran has emerged as crucial to the administration's desire for a political settlement in Iraq. Governments in the neighboring countries have taken notice of the neocons' big blunder. "The Iranians have proven to be absolutely brilliant in all of this," says a well-connected Jordanian. "They're showing that they're going to be the ones to win this one, and they'll do it with American money and lives."

For his part, Allawi praises what he sees as the U.S. military's new realism about the need for what he calls "a cold peace" with Iran. "There is no way to have stability in Iraq without Iran," he insists. "The U.S. military has been very correct in its contact with Iran at the border, and has never violated the unwritten agreement."

The neocons' Iraq triumph of last year has turned to ashes. Their Likud allies in Israel are bitterly split over Prime Minister Ariel Sharon's plans for the settlements in the territories. They have a coldly hostile Iraqi government coming in the near future. The clerical regime they loathe in Iran has dramatically improved its strategic position. Some of them must be rueing the day they met Ahmed Chalabi, who told them the fairy tales they wanted to hear.


All Old Right

2004-05-22 11:36 | User Profile

But, only assuming the neocons really want peace in the Middle East. What they want is Israeli dominance. Remember that these people are pro-Israel warmongers by nature, and in the back pockets of the suppliers of war. I say they want as big a mess as possible to draw out this "war on terror" sham, just as they have done with the war on drugs. Many corrupt politicians have hidden under the disguise of incompetence. As example, look what Israel is pulling off while the world is caught up in the Abu-Graib/Iraq deal...demolishing 1000 homes, assasinating who they want, and digging in at Gaza for some apocalyptic showdown.

The goals are to subjugate the citizenry, locate and eliminate political enemies, and enrich campaign contributors. Looks to me like the neocons are right on schedule. Provided, there are enough imbeciles still voting them into office(for whatever reason).


Peter Phillips

2004-05-22 12:10 | User Profile

[QUOTE=All Old Right]But, only assuming the neocons really want peace in the Middle East. What they want is Israeli dominance. Remember that these people are pro-Israel warmongers by nature, and in the back pockets of the suppliers of war. I say they want as big a mess as possible to draw out this "war on terror" sham, just as they have done with the war on drugs. Many corrupt politicians have hidden under the disguise of incompetence. As example, look what Israel is pulling off while the world is caught up in the Abu-Graib/Iraq deal...demolishing 1000 homes, assasinating who they want, and digging in at Gaza for some apocalyptic showdown.

The goals are to subjugate the citizenry, locate and eliminate political enemies, and enrich campaign contributors. Looks to me like the neocons are right on schedule. Provided, there are enough imbeciles still voting them into office(for whatever reason).[/QUOTE] I think this brings us back to the theory that the Jews are an almighty, invincible, indestructible force and are incapable of making mistakes. That is quite an assumption.

One generation ago, they marched into Lebanon and it seemed they would take the country and convert it into the new occupied territories. A few years later they beat a hasty retreat - routed by the Hezbollah.

They may demolish a few thousand homes here and there but it is a demographic fact that the Palestinian population has increased severalfold from 1947. Those trends can only be reversed by mass-slaughter. Lets see if the Jews are capable of pulling that off.


Peter Phillips

2004-05-23 15:03 | User Profile

There is something very fishy about this whole episode. That Chalabi is a slimeball was well known for many years. He was almost convicted of embezzlement and fraud in the 1980s and has had all kinds of shady deals with dubious characters.

More importantly, questions had already been raised some years ago about dubious accounting practices and siphoning off monies paid to his Iraqi National Congress - millions of dollars of Taxpayer money.

So could the Neo-conservatives have been so stupid? It seems unlikely that they got completely duped by a man known for his lack of reliability.

Something else is afoot here. I stand corrected on this. When the story first broke, I welcomed it with a sense of jubilation that the Neo-cons had finally met their waterloo. I doubt this is the case. They never really go away.

Lets get serious about this. How many Neo-cons have ever got into trouble or faced exile from the establishment for dubious dealing? Richard Perle had to resign because of allegations of "conflicts of interest" (polite term for double dealing and kickbacks from munitions manufacturers). But has Perle been expelled from the establishment? Of course not.

The only people who ever get expelled from the establishment for good are those that actually utter the truth about Jews. Then they are completely finished. That is the lesson to be remembered when reading about these developments.

The only question we must ask ourselves is: How do they benefit from this? I dont know to be honest. But there is a missing link here that we might notice many years later.

P.S : In the same way as we now know the answer to the question: "Why did the Japs attack Pearl Harbour?"


Blond Knight

2004-05-24 02:57 | User Profile

Of course, they totaly avoid the real reason why Wolfyzid and his fellow sheenies pushed for the Iraq war, but at least the vermin is getting a few belated slaps on the side of his ugly mug. :thumbsup:

Posted on Sun, May. 23, 2004

Wolfowitz's blunders cost us dearly

By Bronwyn Lance Chester THE VIRGINIAN-PILOT

It's a good thing the Pentagon didn't contract out the position of deputy defense secretary. Corporate America would have surely canned Paul Wolfowitz by now.

Almost every rosy prediction made by the Iraq war's architect has fallen flat. Instead of squandering company profits, however, Wolfowitz's high-stakes bungling and erroneous forecasts have helped sacrifice more precious commodities: thousands of lives, billions of taxpayer dollars and much of the global goodwill America enjoyed after Sept. 11.

How many strikes does this guy get before he's out? At this rate, Wolfowitz is turning into the Bob Uecker of foreign policy.

Let's recap. Blunder No. 1: Iraq as global threat. Like a wonkish Cotton Mather, Wolfowitz preached the gospel of the Iraqi menace through the 1990s from his university pulpit in Washington, while those actually charged with containing Saddam Hussein - including retired Marine Corps Gen. Anthony Zinni, former head of Central Command - declared Iraq a diminishing power and of little threat.

Blunder No. 2: Troop strength. In February 2003, then-Army Chief of Staff Gen. Eric Shinseki told a congressional panel that America would need several hundred thousand troops to pacify Iraq after the invasion.

Wolfowitz rushed to Capitol Hill two days later to undermine Shinseki, declaring the general's numbers "way too high," telling a House committee "we can say with reasonable confidence" Shinseki's figures were "way off the mark."

A year later, America finds itself breaking deployment taboos, robbing troops from Korea and generally looking everywhere but under the sofa cushions for more soldiers. And we're still unable to pacify Iraq or even control the country's borders. Blunder No. 3: Foreign troop participation. According to Wolfowitz, countries skittish about invading Iraq would be willing to deploy peacekeeping troops afterward. But there has been no great global rush to help America. In fact, some countries that sent handfuls of troops to Iraq have now pulled out.

Note to Wolfie: Peacekeeping troops tend to follow U.N. resolutions, not neo-cons testing academic theories. Blunder No. 4: Ahmed Chalabi. Wolfowitz pushed the Bush administration to position - and fund - Chalabi, an Iraqi exile, convicted embezzler and peddler of false intelligence about WMDs, to lead the newly freed country. And Wolfowitz's fingerprints are all over Iraq's new group of "benevolent rulers" known to locals as "Ahmed Chalabi and the 20 Thieves."

It was Chalabi who famously declared that Iraqis would welcome the American invaders with sweets and flowers. Wolfowitz echoed that, saying we would be greeted as liberators.

Instead, we got rocket-propelled grenades, roadside bombs and mutilation. Blunder No. 5: Paying for the occupation. Last year, Wolfowitz told a House panel that Iraq's oil could produce up to $100 billion in revenues over three years, making the entire operation self-financing.

Instead, Iraq continues to be a budgetary black hole. The $87 billion that U.S. taxpayers shelled out last year isn't even enough to get us through this one: Officials predict a $4 billion shortfall by summer.

Wolfowitz may be the only person happy to see oil prices rise. When crude reaches $1 million a barrel, Iraq might cease being a net drain on the U.S. Treasury.

Any real-world working stiff with this many gaffes in his personnel file would be trying desperately to avoid being hit by the screen door on his way out.

But Wolfowitz, protected by an administration that confuses denial with strength, continues making both national security policy and a sizeable taxpayer-funded salary.

And his flat-out wrong string of predictions about Iraq continue to cost us. Dearly.

Guess that's what they mean by "close enough for government work."


Contact Bronwyn Lance Chester at [email]bronwyn.chester@pilotonline.com[/email].


© 2004 Tallahassee Democrat and wire service sources. All Rights Reserved. [url]http://www.tallahassee.com[/url]


Blond Knight

2004-05-24 03:44 | User Profile

[url]http://www.atimes.com[/url]

Middle East

SPEAKING FREELY Chicken hawks do have a plan By Joe Nichols

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

A recent article in Asia Times Online (Chicken hawk groupthink?, May 12) gives evidence that intellectual inbreeding and the comradery of a closed circle of associates has led the in-group in the Bush administration to make some stupid decisions regarding Iraq, such as waging war, despite much reason and qualified opinion against the idea.

This is likened to the attempted invasion of Cuba at the Bay of Pigs and the Vietnam War. Without discounting the probability that any number of very high-level personalities supporting the current campaign are suffering from a number of delusions, I think the insistence to "stay the course" in Iraq by the principle architects is based on a recognition of several "imperatives" that are clearly understood, correct from a certain point of view, but not quite ripe for public articulation, either in the US or abroad.

As a baseline for my judgment, I put forward several propositions: 1) The political class in every nation is a crop of cultivated liars - to be generous, obfuscators. Power has always resided in the hands of a minority in all societies of significant scale, and with the advent of mass politics and its language of egalitarianism, it became necessary to spin yarns to either justify or conceal the disparity; 2) Humanity is entering the condition of critical mass, leading to a level of competition within and between human groups and areas of the world that will amount to cannibalization: the possibilities for either economic growth or cost-free migration are coming to an end. This is true not simply because of the number of people that now exist and are coming to be, but also hinges on aspects of human nature and a set of divisive and irremediable historical developments, as well as environmental limits preset beneath a rising tide of expectations that are unsupportable.

The first proposition about political dishonesty can be applied to the current in-group in Washington to an exceptional degree, in large part because it is made up mostly of a minority within a minority - they are Jewish. A good deal of controversy surrounds this observation already and I have no space or allowance to repeat such here, so I simply point to the fact with another fact in mind. Facts presented here and elsewhere have also raised the issue of "dual loyalty" between Israel and the US by Jewish neo-conservatives, with former Defense Policy Board chairman Richard Perle's affiliations to the Jerusalem Post, the crafting of Israel's regional strategy ("A Clean Break: A New Strategy for Securing the Realm") and the revolving door between the American Israel Public Affairs Committee (AIPAC) and US administrators being but a few more notable manifestations. Again, I take it as a simple matter of fact (having much to do with assessing group solidarity among Jews in crisis) that Jews in the US are, in general, committed to Israel. From here one should turn to Israel itself.

Israel in danger Israel is in dire straits: despite its nuclear, chemical and biological arsenal and conventional arms; despite its per capita gross domestic product; despite its linkages to the last superpower. Israel is in the grips of an environmental, demographic, social and, potentially, an economic disaster and no amount of crafty diplomacy or even economic investment can salvage the huge historical mistake of creating Israel in the first place. One need only look at the problem of water in this sliver of land, couched within an enormously water-stressed region overall.

Israel's coastal aquifers are depleted. At least 60 percent of its fresh water comes from the West Bank and the Golan Heights, both areas where it must either maintain control or become subject to collaborative management arrangements - not realistic in the current climate, and getting worse all the time. In its last attempt to seize control of the Litani River in Lebanon it was routed by Hezbollah, but left only with the incentive of a big compensation package from the US. Now it buys water from Turkey.

With population growth across the region surrounding Israel averaging around 2.5 percent per annum, and even greater growth in the West Bank and Gaza, Israel must concentrate its development and growth within an increasingly stressed and crowded atmosphere or it must continue to expand. Socially, Israel is as contentious and divided as any country on earth, as well as being riddled with crime, corruption and near caste divisions within its populace. In all, both within Israel and in its regional context, something has to give in order for it to carry on.

As an outsider with no immediate stake in the welfare of the Israeli state, I assume that I am less sensitive to these dilemmas than Defense Secretary Donald Rumsfeld, his deputy Paul Wolfowitz, Perle, National Security Council Middle East Affairs head Eliot Abrams or Under Secretary of Defense for Policy Douglas Feith, so I adopt the easy position that they understand as much about Israel's vulnerabilities and needs as I do. If one goes back to the point of view of Vladimir Jabotinsky, father of the Likud, it becomes also clear that my stream of thought was shrewdly projected even before Israel's foundation: Israel must exist at the expense of Arabs in the region, and the current Israeli historian Benny Morris agrees. In simple terms, Israel is at the edge of its viability as a state unless it either redefines its identity or conquers new territory, beginning with the Golan and the West Bank, but extending necessarily by proxy into at least Syria, Jordan, Egypt, Lebanon and, because of its specifics, Iraq. Conquering in this sense, with regard to established nations, is tantamount to imposing one's will, and to be effective for practical purposes the will of Israel resides in the US.

Why Iraq? In a recent interview on public broadcasting in the US with a trio of the typical, dreary pundits one has come to expect, Lieutenant-General William Odom (retired) called for the hasty withdrawal of US forces from Iraq, fully admitting the probability that the country will descend into civil war as a consequence: the subject of discussion was simply whether or not the war could be won. Odom presented three reasons the US went to war - weapons of mass destruction, overthrowing the Saddam Hussein regime, and establishing a constitutional democracy "friendly" to the US. In that order, he declared the first irrelevant (didn't exist), the second accomplished, and the third not possible to achieve, at least for several decades. Ergo, let's get the hell out and deal with whoever comes out on top.

I imagine President George W Bush, his deputy Dick Cheney, Rumsfeld, Pearl and Wolfowitz sitting in a room listening to this drivel and reacting, with Bush fuming about god and freedom until he goes for a jog with the secret service - the others listen on and nod. After the president leaves, the party in power gets out the cognac and heaves a collective sigh: "Why do they put such people on TV in the first place?" any one of them might ask rhetorically. Odom is either intellectually conditioned or obedient enough to keep the discussion about the causes for the war within the narrow lines the establishment wants, but for whatever reason he draws the wrong conclusion. The Bush cabal didn't go to Iraq for any of Odum's reasons as Odom understands them, and so they are all irrelevant to the decision on whether or not to get out.

While Bush is rubbing his crotch with talcum powder and putting on his sneakers, our quartet of idealists turn to discussing real issues, such as oil, the prospects for privatizing the region, derailing any possibilities for a common currency among Arab nations, the position of the dollar in petroleum markets and for the central reserves in Asia, and the balance of trade between the US and the nations of the Organization of Petroleum Exporting Countries.

All agree that as the price of crude oil goes through the roof, the last thing they want is to continue to give all that money and leverage to states governed by a bunch of vulnerable autocrats continually threatened by their own population's demands for reform, a population that is rapidly growing, getting poorer and, throughout the Middle East, running out of water - think Iran in 1979 times X: We'll have no more willy-nilly Mr Jimmy Carters at the helm, thank you. All also agree that the information age is making global public relations a good bit trickier, even on the home front, despite a largely obedient media and an ignorant and distracted citizenry. During Rumsfeld's testimony on prisoner abuse before the US Congress, his most impassioned remarks were directed at the appalling availability of digital cameras and the Internet: a few pictures and blamo, he's scratching ass and his face is hanging out. The retail handling of dictatorships for the benefit of capital and the Old/New World Order is flying apart. The situation, on the whole, is just becoming unmanageable and big change is needed.

Again, our quartet agrees: We have to bring democracy to the Middle East! And funnily enough, they somewhat mean it. Here I sense the influence of Wolfowitz, a reasonably good mockup of Leo Strauss. Democracy on the scale of nation states is a pretty flexible institution and one needn't (shouldn't) take its egalitarian language too seriously. In the US, for example, the disparity of wealth is impressive, the agenda is managed at the top and as long as things are going reasonably well half the population is completely politically asleep - they just don't participate; even before the law, wealth and status get unequal representation, and if things go wrong it's Fed-Med rather than hard lockup.

Indeed, the US has always preferred to establish a system of rules and privileges similar to its own in the countries that it has tortured and helped to ruin, and despite a few burps along the way the Philippines might be one of the best examples of what the US regards a success - huge disparity in wealth, investment privilege, debt service, military cooperation and ideological agreement. The essential thing has been that US "interests" are given a special place in the system so that US capital can be extended into new territory and inequality across nations can be maintained. If the local population has other ideas and can represent these effectively, the managers in Washington will co-opt the worst class of savages imaginable to put them in their place - often a prison or a grave.

But why the sea change in rhetoric over the Middle East now? The promotion of "democracy" in Iraq conforms to past US policy and rhetoric in the sense that we are actually invading the country, and such pronouncements have always been necessary to justify US aggression; but Saudi Arabia, Kuwait, Yemen, Syria (we can send a few folks there for "interrogation" but still demand an open society), still want back the Golan Heights (which Israel can never allow, mainly for its watershed) and complicates Lebanon for Israel (at least up to the Litani River) - so yes, democracy for Syria. Iran: an important threat to Israel after 1979 (Iraq, under the umbrella of the US until Gulf War I, not a threat to Israel except to far-seeing Israeli xenophobes), a broker of its own oil and in the Caspian Basin and imposing hugely over the future disposition of oil in Iraq - yes, democracy for Iran. Egypt: decades of marshal law and the second biggest recipient of US cash (mostly to support the police state), booming population with its own water woes (possibly to trigger wars in the future all up the Nile), home of the Muslim Brotherhood and with a change of direction, Israel's worst nightmare - yes, democracy for Egypt, but enormously complicated to pull off temporarily with even modest success, largely for economic and environmental reasons, so a relatively subdued call for reform.

And why was Saddam set up to invade Kuwait in the first place (his motivations "slant drilling into Iraqi oil, demands for the repayment of debt after the Iran-Iraq war, from which an ungrateful Sunni elite in Kuwait was relieved of the specter of a resurgent Shi'ite majority in the south of Iraq" could have been dispelled by US pressure), if not to isolate and undermine his regime. Why do this to a good fella like Saddam? He had been there for the US and could still be managed, given a little leg up in his time of need. The strategic decision to get rid of Saddam preceded his invasion of Kuwait.

Combinations of factors have brought about the shift in policy in the Middle East.

1.) The collapse of the Soviet Union - opening the floodgates for neo-liberal aggression and leading immediately to a huge wave of privatizations of national assets throughout the world. But with oil being the most strategic, coveted, controversial and thus best protected of such assets, the privatization of oil has been delayed. The circumstances for artificial elites in control of the major reserves of oil in less-developed nations, from Saudi Arabia and Iraq to Nigeria, from Indonesia or Angola to Venezuela, have changed: the near universal adoption of capitalism by national elites has radicalized the arena in which negotiation, leverage, alliance or self-determination occur.

2.) Human critical mass and globalization - as indicated above, too many people in highly unequal conditions demanding too much from a finite, over-attended pie. The old claim that a rising tide lifts all boats is horribly mismatched across the seven seas. India's population, for example, is scheduled to peg out at above 1.6 billion by 2050, and the 150 million there currently feasting at the consumer's table will not assure a place for the 700 million literally without a pot to piss in. The Philippines is another excellent example, as the country approaches biological collapse. Nigeria, at 130+ million, is about to go bonkers. This bears on democratization across the Middle East not only because it is basically in the same boat as these other nations, but also because oil is increasingly assuming the character of a global asset, and with fully half of it in and around the Persian Gulf, the relevant resource rich but weak nations' efforts to defend the concept of their sovereignty will be pitted against a general atmosphere of desperation, a philosophy of macroeconomic functionalism, and a belief that all resources must be integrated into a global economy without either prejudice or undue advantage. Democracy/free trade is the mantra for this process, to be dictated by the industrialized world.

3.) The Judaization of the American elite - Jews are the most prosperous subset of the elite in the US, the biggest political campaign contributors, the principle managers of US media, and have dominated the last two presidential administrations. For better or for worse, informed observers must concede that Jews in the US have reached a pinnacle of wealth and influence fantastically beyond their numbers. Nevertheless, Jewish influence on US Middle East policy has historically been offset by broader American strategic interests in Persian Gulf oil, much to the frustration of the rising Jewish elite. This helps to explain much of what appears lumpen and confused about US policy in the region. After the Jewish invasion into the Levant, Israel's initially defensive wars and its chronic abuse of the local Arab population, as well as its encroachments on its hostile neighbors, have in fact been constrained - first by its essential weakness, and increasingly (as it has accrued real power after 1973) by US national interests in managing Middle East oil. But with the global strategic scenario being radically altered by the collapse of the Soviet Union, population growth in the region and underdevelopment with its discontents have been linked with an overall increase in competition for resources to emerge - in the hands of realists among the Jewish intelligentsia involved in geopolitical strategizing - to become more credible indicators of an entrenched regional instability that threatens America's access to and control over the same oil. Muslim militants conducting terrorist operations against US interests in the region are understood as simply the vanguard of a more general uprising to come.

In sum, the world has changed since 1990. A bipolar struggle went poof, and quickly evolved beyond the presumptions of the survivor into an undefined multi-polar, up-for-grabs environment in which rhetoric is chasing after an emerging reality. The shrewdest (the Jews) and the most cynical (the capitalists) respondents to this situation overlap, and they have seized the moment for the time being, focusing their energies on the precise point that most satisfies their mutual aims - the Persian Gulf, as the greatest material prize in world history and the strategic lever for Arab influence.

Such a perspective suggests to me that Rumsfeld, Cheney, Wolfowitz and Perle agree that long term, joint US/Israeli interests are centered on establishing control over the Persian Gulf. Democratization of the Middle East is not about human rights per se, but it is about updating the means by which Gulf oil is made available on a predictable basis to US control and integrated into a globalizing economy to the advantage of the US. The Jewish Diaspora community has put most of its eggs in the US basket, which is increasingly at economic risk - with the decline of the one also goes the other.

What I wonder about most deeply is whether this quartet must divide itself to speak frankly about what should be done if the Iraq campaign fundamentally fails. My concern would be that their planned response to such an eventuality would be like their hidden rationale for the current war: a consequence of a desperation to maintain their interests, clearly thought out, and too frightful for public discussion. Either now or then, however, I believe they know exactly what they are doing.

(Copyright Joe Nichols.)

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.


Faust

2004-05-24 13:02 | User Profile

Sertorius,

Hey, it's Neocons who are attacking Ahmed Chalabi, if anything it shows him a much lesser evil than I thought. So he's not an Isreali boot licker and wants Iraq to have good relations with Iran. That's not saying anything bad about him.