Clinton gets the blame, Rummy gets the money

This is a bombshell from May 2003. While the GOP is busy blaming Clinton for North Korea exploding nukes this week, history would show that Rummy was sitting on the board of the Zurich based company that sold them the light water nuke technology in the first place. This is so big, I'm going to excerpt more freely than usual.

(FORTUNE Magazine) – Defense Secretary Donald Rumsfeld rarely keeps his opinions to himself. He tends not to compromise with his enemies. And he clearly disdains the communist regime in North Korea. So it's surprising that there is no clear public record of his views on the controversial 1994 deal in which the U.S. agreed to provide North Korea with two light-water nuclear reactors in exchange for Pyongyang ending its nuclear weapons program. What's even more surprising about Rumsfeld's silence is that he sat on the board of the company that won a $200 million contract to provide the design and key components for the reactors.

The company is Zurich-based engineering giant ABB, which signed the contract in early 2000, well before Rumsfeld gave up his board seat and joined the Bush administration. Rumsfeld, the only American director on the ABB board from 1990 to early 2001, has never acknowledged that he knew the company was competing for the nuclear contract. Nor could FORTUNE find any public reference to what he thought about the project. In response to questions about his role in the reactor deal, the Defense Secretary's spokeswoman Victoria Clarke told Newsweek in February that "there was no vote on this" and that her boss "does not recall it being brought before the board at any time."

...The director recalls being told that Rumsfeld was asked "to lobby in Washington" on ABB's behalf in the mid-1990s because a rival American company had complained about a foreign-owned firm getting the work. Although he couldn't provide details, Goran Lundberg, who ran ABB's power-generation business until 1995, says he's "pretty sure that at some point Don was involved," since it was not unusual to seek help from board members "when we needed contacts with the U.S. government." Other former top executives don't recall Rumsfeld's involvement.

...Even so, ABB tried to keep its involvement hush-hush. In a 1995 letter from ABB to the Department of Energy obtained by FORTUNE, the firm requested authorization to release technology to the North Koreans, then asked that the seemingly innocuous one-page letter be withheld from public disclosure. "Everything was held close to the vest for some reason," says Ronald Kurtz, ABB's U.S. spokesman. "It wasn't as public as contracts of this magnitude typically are."

...By 1998 a debate was raging in Washington about the initiative, and the delays were infuriating Pyongyang. Inspectors could no longer verify North Korea's nuclear material inventory. Still, at some point in 1998, ABB received its formal "invitation to bid," says Murray. Where was Rumsfeld? That year he chaired a blue-ribbon panel commissioned by Congress to examine classified data on ballistic missile threats. The commission concluded that North Korea could strike the U.S. within five years. (Weeks after the report was released, it fired a three-stage rocket over Japan.) The Rumsfeld Commission also concluded that North Korea was maintaining a nuclear weapons program--a subtle swipe at the reactor deal, which was supposed to prevent such a program. Rumsfeld's resume in the report did not mention that he was an ABB director.

In his final days in office, Clinton had been preparing a bold deal in which North Korea would give up its missile and nuclear programs in return for aid and normalized relations. But President Bush was skeptical of Pyongyang's intentions and called for a policy review in March 2001. Two months later the DOE, after consulting with Rumsfeld's Pentagon, renewed the authorization to send nuclear technology to North Korea. Groundbreaking ceremonies attended by Westinghouse and North Korean officials were held Sept. 14, 2001--three days after the worst terror attack on U.S. soil.

The Bush administration still hasn't abandoned the project. Representative Edward Markey and other Congressmen have been sending letters to Bush and Rumsfeld, asking them to pull the plug on the reactors, which Markey calls "nuclear bomb factories." Nevertheless, a concrete-pouring ceremony was held last August, and Westinghouse sponsored a training course for the North Koreans that concluded in October--shortly before Pyongyang confessed to having a secret uranium program, kicked inspectors out, and said it would start making plutonium. The Bush administration has suspended further transfers of nuclear technology, but in January it authorized $3.5 million to keep the project going.

So as late as 2002, Bush was allowing this project to go forward so Rummy could collect his fees. Is it me, or does this whole test thing suddenly take on the air of a set-up?

[hat tip Jules Siegel]