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January 8-12, 2001 - Global Policy Forum - Email 'Listserv' News
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January 8-12, 2001Greetings from Global Policy Forum!
Scandals Engulf French Political Elite
In recent weeks, leading French political and military figures have argued in the press about whether anyone is responsible for French forces' use of torture in Algeria during the independence war. These ruminations of aging warriors provide a chilling reminder that even in the birthplace of human rights, official conduct has virtually no limits when "state security" is deemed to be at stake. While the public was being treated to daily doses on the official uses of torture, a videotape left by a dead politician uncovered a broad scandal implicating French President Jacques Chirac and many other major political figures, including a judge in the prestigious Constitutional Court. It seems that Chirac, as Mayor of Paris a few years ago, routinely arranged kickbacks from public contractors to fill the coffers of his Gaullist party . . . and other major parties as well. Chirac has appeared on television to deny the charges, but he continues to refuse to be questioned by judicial authorities in the case, leaving the distinct impression that he fears the worst and that for the first time a French president might be driven in disgrace from the Elysee.
Scandals continued. On December 22, judicial authorities arrested Jean-Christophe Mitterrand, eldest son of Chrac's predecessor as president, the late socialist Francois Mitterrand. Jean-Christophe, whose nickname is "papa m'a dit" (daddy told me), was special advisor on Africa to his father from 1986-1992. From his office in the Elysee, the younger Mitterrand acted as a private arms merchant, brokering substantial arms deals that were contrary to French law. One of the deals funneled $500 million in arms to war-torn Angola, for which Mitterrand junior is said to have made a tidy $1.8 million. Jacques Attali, now the Managing Director of the European Development Bank, has also been implicated, along with Charles Pasqua, former Minister of the Interior. Money from the deal was allegedly even donated to the professional association of French magistrates! Mitterrand's numbered Swiss account at the Banque Darier has now been frozen and he has been charged with "illicit arms trafficking, influence peddling and the abuse of public office."
French National Assembly Investigates European Offshore Havens
The scandals in France, like those last year in Germany, have revealed public officials secretly transferring funds out of the country to numbered bank accounts in nearby financial havens such as Switzerland, Monaco and Liechtenstein. Those who would like to learn more about these shadowy offshore banking world should consult the remarkable investigations of a special committee of the French National Assembly (available in French on the National Assembly web site). Over the past two years, these hardy parliamentarians have produced two remarkable reports that offer unique information about the Principality of Monaco and the Grand Duchy of Liechstenstein. Monaco, we learn, not only has very close ties to France, but its budget is largely subsidized by French taxpayers, allowing its super-rich citizens to pay no taxes at all! Monaco's major industry is banking. Though there are only about 5,000 Monocan citizens, there were more than 340,000 bank accounts registered there in 1998, holding deposits of some $50 billion. There were also some 10,000 corporations (mostly "shells" for moving money) and 70 banking institutions. The ruling Grimaldi family of Monaco has an active policy of transforming the country into a tax-haven, making sure that no judicial cases against depositors are brought to trial, to avoid a "bad reputation" for Monaco among present and potential clients. According to the parliamentary investigators, money from arms trafficking, drug trafficking, corruption of public officials, fraud, theft, prostitution and all sorts of other illicit sources finds a safe haven in Monaco, while the famous casino offers a ready opportunity for money-laundering.
The French parliamentarians still have much work left to do, since in the heart of Europe there are eight other micro states offering such services -- in addition to Switzerland and the many offshore opportunities to be found in the City of London. The tiny Island of Jersey is home to $60 billion in bank accounts, while Luxembourg's banks boast sheltered deposits of no less than $400 billion. The OECD estimates that European states lose hundreds of billions of dollars in tax revenues through sheltered accounts in these territories. But political leaders would evidently prefer to keep these offshore operations open, for special reasons of their own.
Iraq Sanctions
Political leaders can be mesmerized by "black gold" (petroleum) as they can by the yellow variety, hence the huge military and strategic focus on the Middle East, where most of the world's oil reserves are to be found. Almost ten and a half years after comprehensive UN sanctions were first imposed on oil-rich Iraq, the sanctions are still in place, though more controversial than ever because of serious humanitarian consequences. US-UK bombing campaigns in the Northern and Southern "no-fly zones" are also continuing, while Turkey carries out regular cross-border military campaigns against the Kurds. This week, we heard from Hans von Sponeck, former UN humanitarian coordinator who resigned in disgust last year. Von Sponeck wrote an open letter to UK minister Peter Hain, published prominently in the Guardian newspaper, which denounced the government's Iraq policy and accused Hain of using "fabricated disinformation" in a widely-reported speech on sanctions policy. Von Sponeck set out his charges with devastating clarity and persuasive effect. Judging from coverage in the British press, the Blair government has now lost the public opinion battle and is desperately looking for a way to change course on Iraq without staining its relations with Washington.
This week we learned of a very interesting article by Thomas Ricks, run by the Washington Post in October. Ricks interviews US pilots who patrol Iraq's northern no-fly zone. Curiously, many of the pilots are not US military personnel.. They work part-time for the Air Force, and spend most of the year flying for airlines such as Delta and United. The pilots' accounts shed important light on this "Forgotten War" (as the article is entitled) and tell of missions cut short so that Turkey can run its own bombing raids on Iraqi Kurdish villages-the same villages that the no-fly zones are supposed to protect. Turkey is a NATO ally, while Iraq is the enemy-of-choice of the Western alliance. So different standards are adopted, depending on who might want to do the killing.
US Lobbies to Lift Arms Embargo on Ethiopia
Warped standards were very much in evidence last week at the United Nations Security Council, as the outgoing Clinton Administration pressed hard for the lifting of a Council-imposed ban on arms sales to Eritrea and Ethiopia, countries only recently engaged in a bloody war. Most Council members oppose the move, rightly insisting that the area is awash in arms and the political settlement to the conflict still shaky. The US, it seems, wants to sell arms to Ethiopia, a move that would almost certainly destabilize the peace (while creating markets for US arms companies). Secretary of State Madeleine Albright is said to be calling capitals to push the deal along, while Ambassador Richard Holbrooke is doing his part in New York. With such heavy pressure and arm-twisting by the superpower, it is not yet clear whether Council members will be able to maintain the arms embargo. The Clinton administration is said to be keen on pushing the deal before it leaves office this coming weekend.
Now the links for this week...
