http://www.chron.com/cs/CDA/ssistory.mpl/business/2411779 Deals in Iran, Syria appall senators Halliburton, ConocoPhillips questioned By DAVID IVANOVICH Copyright 2004 Houston Chronicle Washington Bureau WASHINGTON — Dismayed by loopholes that enable U.S. companies to do business with rogue nations, a Senate panel Thursday launched an investigation into Halliburton, ConocoPhillips and General Electric's operations in Iran and Syria. Lawmakers on the Senate Finance Committee want to know how these and other companies are sidestepping federal laws aimed at keeping U.S. firms from trading with countries that support terrorism. "If these companies are going through the back door to invest in terrorist nations, Congress must take action to immediately close, lock and seal those doors," said Sen. Max Baucus, D-Mont., the ranking Democrat on the panel. On Thursday, the committee sent letters to the three firms, asking them to detail their business ties with these countries. Federal law permits foreign subsidiaries of U.S. companies to trade with countries deemed supporters of terrorism, as long as those foreign entities are truly independent of the company. Halliburton and GE have used such entities to run operations in Iran, while ConocoPhillips has done so to buy a stake in a Syrian natural gas processing facility. Officials from both Halliburton and ConocoPhillips said their firms are in compliance with U.S. laws. A spokesman for GE could not be reached for comment. But the lawmakers contend the independence of these foreign operations is "questionable." In a letter to Treasury Secretary John Snow, Baucus and Finance Committee Chairman Charles Grassley, R-Iowa, pointed to Halliburton subsidiary Halliburton Products and Services Ltd. "This subsidiary is nominally located in the Cayman Islands, but according to media reports, does not conduct any actual business in the Cayman Islands or even maintain a functioning office. "It is important that U.S. companies abide by the spirit as well as the letter of the law," the lawmakers wrote. "We are concerned about this specific example, and about the possibility that this may be indicative of a more widespread problem." Treasury officials vowed to work with the committee "as we continue to crack down on terrorist financiers and will work to provide them with information about our efforts." In a letter to Halliburton Chief Executive Officer Dave Lesar, the lawmakers asked for more information about Halliburton Products and Services and other subsidiaries with business ties to Iran. Lawmakers want to know when these subsidiaries were created, how long they've been conducting business in Iran, how much they've made there, how much they've paid the government of Iran in taxes and other fees. They also want the minutes from any board meetings at these subsidiaries where doing business in Iran was discussed. Last year, Halliburton told New York City Comptroller William Thompson Jr., who has also been looking into this issue, that Halliburton Products and Services, a Cayman Islands firm headquartered in Dubai, the United Arab Emirates, expected to sell more than $39 million worth of oil-field services to customers in Iran in 2003. The company also revealed it owns a British oil tool company, and three engineering outfits based in the United Kingdom and Sweden, which have some minor sales in Iran. CBS News' 60 Minutes visited Halliburton Products and Services' address in the Cayman Islands and could discern no business being conducted there. "Recent media reports allege that mail sent to (Halliburton Products and Services) is forwarded to Halliburton offices in Houston, indicating that decision-making authority may be in Houston, not in the Cayman Islands or Dubai," the lawmakers wrote. The company was asked to provide information that could disprove that allegation. Lawmakers also want to know if Halliburton's operation in Dubai shares the same address, telephone and fax machine numbers as Halliburton Products and Services. Halliburton spokeswoman Wendy Hall said the company's business in Iran "is clearly permissible under applicable laws and regulations." "The activities of Halliburton's subsidiaries in Iran are staffed and managed by non-U.S. personnel," she said. "Halliburton is trying to conduct business in a reasonable and honest way. The direction and conduct of U.S. foreign policy should, we believe, properly be left to the government." The Treasury Department's Office of Foreign Assets Control recently asked the company for new information about the subsidiary, the company revealed in a filing with the Securities and Exchange Commission. The lawmakers sent a similar missive to ConocoPhillips Chairman Archie Dunham. Houston-based ConocoPhillips has a partial interest in a small gas processing facility in Syria, a stake that will terminate next year. "This investment started in 1999, in compliance with U.S. laws and with full knowledge of the U.S. government," a company spokesman said. The lawmakers also asked ConocoPhillips if it had business ties with Iran, and the company said it has no operations, assets or investments there. Lawmakers have asked the companies and the Bush administration to respond to their request by March 26.
Cheney did lots of business with Iraq as well as Iran and Syria when he was CEO of Halliburton. (I know Cheny will try a Dubya and plead ignorance, but he doesn't have the cover of learning disabilities, like Dubya.) Particularly troubling was when Cheney's Halliburton was lobbying for removing the sanctions on Iraq before he became VP so Halliburton could do more business with Sadam. Could Cheney please explain why he "hated America" so much before he became VP?
