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From: nemo@cais.com
Newsgroups: alt.conspiracy
Subject: Private Presidential Public Relations(hips)
Date: 26 Apr 1996 14:01:14 GMT
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>   101525.225@compuserve.com (Steven Littlechild) writes:
>  According to a report on German television, the initial reports from
>  Kuwait regarding Iraqi atrocities (babies taken from incubators and
>  left to die, etc.) were not based on fact but were planted by a PR
>  Agency paid by the Kuwaiti government-in-exile.  The evidence given to
>  the UN by a supposed witness was in fact given by a niece of a Kuwaiti
>  official.
>  
>  The claims and evidence were subsequently used by the UN, President
>  Bush, etc. to justify sanctions against Iraq and later Desert Storm.
>  
-----------SNIP----------------------------------------------------SNIP-----------

[Private Presidential Public Relations(hips)]

Public Relationships: Hill & Knowlton, The White House, and the CIA
by Johan Carlisle
from the Spring 1993 issue of CAQ (Number44)


Public relations and lobbying firms are part
of the revolving door between government and
business that President Clinton has vowed to close.
It is not clear how he will accomplish this goal when so
many of his top appointees, including Ron Brown
and Howard Paster, are "business as usual"
Washington insiders. Ron Brown, who was a lobbyist and
attorney for Haiti's "BabyDoc"Duvalier, is Clinton's
Secretary of Commerce.  Paster, former head of Hill
and Knowlton 's Washington office, directed the confirmation
process during the transition period and is now
Director of Intergovernmental Affairs for the White
House. After managing PR for the Gulf
War, Hill and Knowlton executive
Lauri J. Fitz-Pegado became director
of public liaison for the inauguration.
   
The door swings both ways. Thomas Hoog,
who served on Clinton's transition team,
has replaced Paster as head of H&K's 
Washington office.
    
Hill and Knowlton is one of the world 's largest
and most influential corporations. As such,
its virtually unregulated status, its longstanding
connections to intelligence agencies, its role in
shaping policy, and its close relationship to the
Clinton administration deserve careful scrutiny.
   
In Turkey, "in July 1991, the same month 
President George Bush made an official visit there, the 
body of human rights worker Vedat Aydin was found 
along a road. His skull was fractured, his legs were 
broken, and his body was riddled by more than a dozen 
bullet wounds. He had been taken from his home by 
several armed men who identified themselves as police 
officers. No one was charged with his murder."  De-
spite hundreds of such "credible reports" 
acknowledged by the State Department, documenting 
use of "high-pressure cold water hoses, electric 
shocks, beating of the genitalia, and hanging by the 
arms," Turkey reaps the benefits of U.S. friendship and 
Most Favored Nation status. "Last year Turkey received 
more than $800 million in U.S. aid, and spent more than 
$3.8 million on Washington lobbyists to keep that 
money flowing."   Turkey paid for U.S. tolerance of 
torture with its cooperative role in NATO, and its 
support for Operation Desert Storm; it bought its 
relatively benign public image with cold cash. 
Turkey's favorite Washington public relations and 
lobbying firm is Hill and Knowlton (H&K), to which it 
paid $1,200,000 from November 1990 to May 1992. 
Other chronic human rights abusers, such as China, 
Peru, Israel, Egypt, and Indonesia, also retained Hill 
and Knowlton to the tune of $14 million in 1991-92. Hill 
and Knowlton has also represented the infamously 
repressive Duvalier regime in Haiti.   

On October 10, 1990, as the Bush 
administration stepped up war preparations against 
Iraq, H&K, on behalf of the Kuwaiti government, 
presented 15-year-old  "Nayirah" before the House 
Human Rights Caucus. Passed off as an ordinary Kuwaiti 
with firsthand knowledge of atrocities committed by 
the Iraqi army, she testified tearfully before Congress:   

"I volunteered at the al-Addan hospital...[where] I saw 
the Iraqi soldiers come into the hospital with guns, and 
go into the room where 15 babies were in incubators. 
They took the babies out of the incubators, took the 
incubators, and left the babies on the cold floor to 
die."  

Supposedly fearing reprisals against her family, 
Nayirah did not reveal her last name to the press or 
Congress. Nor did this apparently disinterested witness 
mention that she was the daughter of Sheikh Saud 
Nasir al-Sabah, Kuwait's ambassador to the U.S.   As 
Americans were being prepared for war, her story-
which turned out to be impossible to corroborate 
-became the centerpiece of a finely tuned public 
relations campaign orches- trated by H&K and coordi-
nated with the White House on behalf of the 
government of Kuwait and its front group, Citizens for 
a Free Kuwait.      

In May 1991, CFK was folded into the 
Washington-based Kuwait-America Foundation. 
CFK had sprung into action on August 2, the day Iraq 
invaded Kuwait.   By August 10, it had hired H&K, the 
preeminent U.S. public relations firm.   CFK reported to 
the Justice Department receipts of $17,861 from 78 
individual U.S. and Canadian contributors and $11.8 
million from the Kuwaiti government.   Of those "do-
nations," H&K got nearly $10.8 million to wage one of 
the largest, most effective public relations campaigns 
in history.
   
 From the streets to the newsrooms, according to 
author John MacArthur, that money created a benign 
facade for Kuwait's image:
   
"The H&K team, headed by former U.S. Information 
Agency officer Lauri J. Fitz-Pegado, organized a Kuwait 
Information Day on 20 college campuses on September 
12. On Sunday, September 23, churches nationwide 
observed a national day of prayer for Kuwait. The next 
day, 13 state governors declared a national Free 
Kuwait Day. H&K distributed tens of thousands of Free 
Kuwait bumper stickers and T-shirts, as well as 
thousands of media kits extolling the alleged virtues 
of Kuwaiti society and history. Fitz-Pegado's crack 
press agents put together media events featuring 
Kuwaiti "resistance fighters" and businessmen and 
arranged meetings with newspaper editorial boards. 
H&K's Lew Allison, a former CBS and NBC News producer, 
created 24 video news releases from the Middle East, 
some of which purported to depict life in Kuwait under 
the Iraqi boot. The Wirthlin Group was engaged by H&K 
to study TV audience reaction to statements on the 
Gulf crisis by President Bush and Kuwaiti officials. "
   
All this PR activity helped "educate" Americans about 
Kuwait - a totalitarian country with a terrible human 
rights record and no rights for women. Meanwhile, the 
incubator babies atrocity story inflamed public opinion 
against Iraq and swung the U.S. Congress in favor of 
war in the Gulf.   

This free market approach to manufacturing public 
perception raises the issue of whether there is something 
fundamentally wrong when a foreign government can 
pay a powerful, well-connected lobbying and public 
relations firm millions of dollars to convince the 
American people and the American government to 
support a war halfway around the world. In another 
age this activity would have caused an explosion of 
outrage. But something has changed in Washington. 
Boundaries no longer exist.
     
One boundary which has been blurred beyond 
recognition is that between "propaganda" - which 
conjures up unpleasant images of Goebbels - like 
fascists - and "public relations," a respectable white 
collar profession.   Taking full advantage of the 
revolving door, these lobbyists and spinmeisters glide 
through Congress, the White House, and the major 
media editorial offices.   Their routine manipulations--
like those of their brown shirted predecessors--corrode 
democracy and government policy.   H&K's highly paid 
agents of influence, such as Vice President Bush's chief 
of staff Craig Fuller, and Democratic power broker 
Frank Mankiewicz, have run campaigns against 
abortion for the Catholic Church, represented the 
Church of Scientology, and the Moonies.   They have 
made sure that gasoline taxes have been kept low for 
the American Petroleum Institute; handled flack for 
Three Mile Island's near-catastrophe; and mishandled 
the apple growers' assertion that Alar was safe. They 
meddle in our political life at every turn and 
apparently are never held accountable.   Not only do 
these PR firms act as foreign propaganda agents, but 
they work closely with U.S. and foreign intelligence 
agencies, making covert operations even harder to 
control.
   
In the 1930s, Edward Bernays, the "father of public relations,"
convinced corporate America that changing 
the public's opinion--using PR techniques--about troublesome 
social movements such as socialism and labor 
unions, was more effective than hiring goons to club 
people.   Since then, PR has evolved into an increasingly 
refined art form of manipulation on behalf of whoever 
has the large amounts of money required to pay for it. 
In 1991, the top 50 U.S.-based PR firms billed over 
$1,700,000,000 in fees.   Top firms like Hill and Know-
lton charge up to $350 per hour.
   
PR firms manipulate public and congressional opinion 
and government policy through media campaigns, 
congressional hearings, and lobbying.   They have the 
ability and the funds to conduct sophisticated research 
for their clients and, using inside information, to 
advise them about policy decisions.   They are positioned 
to sell their clients access and introductions to gov-
ernment officials, including those in intelligence 
agencies.   Robert Keith Gray, head of Hill and 
Knowlton's Washington office for three decades, used 
to brag about checking major decisions personally with 
CIA director William Casey, whom he considered a 
close personal friend. 
   
One of the most important ways public relations firms 
influence what we think is through the massive 
distribution of press releases to newspapers and TV 
newsrooms. One study found that 40 percent of the 
news content in a typical U.S. newspaper originated 
with public relations press releases, story memos, or 
suggestions.    The Columbia Journalism Review, which 
scrutinized a typical issue of the Wall Street Journal, 
found that more than half the Journal's news stories 
"were based solely on press releases."   Although the 
releases were reprinted "almost verbatim or in para-
phrase," with little additional reporting, many articles 
were attributed to "a Wall Street Journal staff 
reporter." 
   
While some PR campaigns are aimed at the general pub-
lic, others target leadership, either to persuade them 
or to provide them with political cover.   On November 
27, 1990, just two days before the U.N. Security Council 
was to vote on the use of military force against Iraq, 
while the U.S. was extorting, bullying, and buying U.N. 
cooperation, Kuwait was trying to win hearts, minds, 
and tear ducts.   "Walls of the [U.N.] Council chamber 
were covered with oversized color photographs of 
Kuwaitis of all ages who reportedly had been killed or 
tortured by Iraqis. ...A videotape showed Iraqi soldiers 
apparently firing on unarmed demonstrators, and 
witnesses who had escaped from Kuwait related tales 
of horror.   A Kuwaiti spokesman was on hand to insist 
that his nation had been `an oasis of peaceful harmony' 
before Iraq mounted its invasion."   This propaganda 
extravaganza was orchestrated by Hill and Knowlton 
for the government of Kuwait.   With few exceptions, 
the event was reported as news by the media, and two 
days later the Security Council voted to authorize 
military force against Iraq.
   

   THE INTELLIGENCE CONNECTION

The government's use of PR firms in general, and Hill 
and Knowlton in particular, goes beyond ethically 
dubious opinion manipulation.  It includes potentially 
illegal proxy spying operations for intelligence 
agencies.  "H&K recruited students to attend teach-ins 
and demonstrations on college campuses at the height 
of the Vietnam War, and to file agent-like reports on 
what they learned," according to author Susan Trento. 
"The purpose was for H&K to tell its clients that it had 
the ability to spot new trends in the activist 
movement, especially regarding environmental issues." 
Richard Cheney (no relation to former Secretary of 
Defense Cheney), head of H&K's New York office, 
denied this allegation.   He said that H&K recommends 
that its clients hire private investigative agencies to 
conduct surveillance and intelligence work.  But, 
Cheney admitted, "in such a large organization you 
never know if there's not some sneak operation going 
on."
   
 Former CIA official Robert T. Crowley, the Agency's 
long-time liaison with corporations, sees it 
differently.   "Hill and Knowlton's overseas offices," he 
acknowledged, "were perfect `cover' for the 
ever-expanding CIA.   Unlike other cover jobs, being a 
public relations specialist did not require technical 
training for CIA officers."   The CIA, Crowley admitted, 
used its H&K connections "to put out press releases and 
make media contacts to further its positions. ...H&K 
employees at the small Washington office and 
elsewhere, distributed this material through CIA 
assets working in the United States news media." 
Since the CIA is prohibited from disseminating 
propaganda inside the U.S., this type of "blowback"-
which former CIA officer John Stockwell and other 
researchers have often traced to the Agency-is illegal.
While the use of U.S. media by the CIA has a long and 
well-documented history, the covert involvement of PR 
firms may be news to many.   According to Trento:
   
"Reporters were paid by the CIA, sometimes without 
their media employers' knowledge, to get the material 
in print or on the air. But other news organizations 
ordered their employees to cooperate with the CIA, 
including the San Diego-based Copley News Service. But 
Copley was not alone, and the CIA had `tamed' 
reporters and editors in scores of newspaper and 
broadcast outlets across the country. To avoid direct 
relationships with the media, the CIA recruited 
individuals in public relations firms like H&K to act as 
middlemen for what the CIA wanted to distribute." 
   
 This close association and dependence upon the 
intelligence community by reporters has created a 
unique situation which has shielded PR executives and 
firms from closer scrutiny by the media and Congress. 
According to Trento, "These longstanding H&K 
intelligence ties and CIA-linked reporters' fears that 
Gray might know about them might partially explain 
why Gray has escaped close media examination, even 
though he was questioned about his or his associates' 
roles in one major scandal after another during his long 
Washington career."
    
Over the years, Hill and Knowlton and Robert Gray have 
been implicated in the BCCI scandal, the October 
Surprise, the House page sex and drug scandal, 
Debategate, Koreagate, and Iran-Contra.    In 
October 1988, three days after the Bank of Credit and 
Commerce International (BCCI) was indicted by a 
federal grand jury for conspiring with the Medellin 
Cartel to launder $32,000,000 in illicit drug profits, the 
bank hired H&K to manage the scandal.   Robert Gray 
also served on the board of directors of First American 
Bank, the Washington D.C. bank run by Clark Clifford 
(now facing federal charges) and owned by BCCI.   Gray 
was close to, and helped in various ways, top Reagan 
officials.   When Secretary of Defense Caspar 
Weinberger's son needed a job, Gray hired him for 
$2,000 a month.   "And when Gray's clients needed 
something from the Pentagon, Gray and Co. went right 
to the top."   Gray also helped Attorney General Ed 
Meese's wife, Ursula, get a lucrative job with a 
foundation which was created by a wealthy Texas 
client, solely to employ her. 
   
   ROBERT KEITH GRAY- PRIVATE SPOOK?

Robert Keith Gray, who set up Hill and Knowlton's 
important Washington, D.C. office and ran it for most 
of the time between 1961 and 1992,  has had 
numerous contacts in the national and international 
intelligence community.   The list of his personal and 
professional associates includes Edwin Wilson, William 
Casey, Tongsun Park (Korean CIA), Rev. Sun Myung 
Moon, Anna Chennault (Gray was a board member of 
World Airways aka Flying Tigers), Neil Livingstone, Ro-
bert Owen, and Oliver North.
   
"Most of the International Division [of Gray & Co.] clients,"
 said Susan Trento, "were right-wing 
governments tied closely to the intelligence 
community or businessmen with the same 
associations."
    
In 1965, with Gray's help, Tongsun Park, had formed the 
George Town Club in Washington. According to Trento:
   
Park put up the money and, with 
introductions from Gray and others, recruited 
"founders" for the club like the late Marine Gen. 
Graves Erskine, who had an active intelligence career. 
Anna Chennault became a force in the club. Others 
followed, and most, like Gray, had the same 
conservative political outlook, connections to the 
intelligence world, or `congressional overtones.'   Gray's 
ties to right-wing Asians like Chennault and Park had 
deep roots.   Gray had been critical of Eisenhower [when 
he was appointments secretary for Eisenhower] for 
never being partisan enough.   Perhaps that is why Gray 
embraced wholeheartedly the powers behind the China 
Lobby.   One reason Gray was attached to the lobby was 
that they had long been behind the funding of Richard 
Nixon's various campaigns.
    
Tongsun Park was an "agent of influence," trained by 
the Korean intelligence agency, which was created by 
and is widely regarded as a subsidiary of the CIA.   The 
George Town Club has served as a discrete meeting 
place where right-wing foreign intelligence agents can 
socialize and conduct business with U.S. government 
officials.
   
Robert Gray has also been linked with former CIA and 
naval intelligence agent Edwin Wilson, although Gray 
denies it.   In 1971, Wilson left the CIA and set up a 
series of new front companies for a secret Navy 
operation - Task Force 157.   Wilson says that Robert Gray 
"was on the Board [of Directors].   We had an agreement 
that anything that H&K didn't want, they would throw 
to me so that I could make some money out of it, and 
Bob and I would share that." 
   
   THE GRAY AREA BEHIND HILL & KNOWLTON

Gray's connection to Iran-Contra has never been fully 
examined.   Notably, the Tower Commission, Reagan's 
official 1986 investigation, all but ignored it.   In 1983, 
Texas Senator John Tower had declined to seek 
reelection thinking he had a deal with Reagan to 
become Secretary of Defense.   After Weinberger decided 
to stay on in the second Reagan term, Tower found 
himself without a job.  In 1986, his friend Robert Gray 
offered him a position on the board of directors of Gray 
and Co. Shortly thereafter, Tower was asked to head 
the presidential inquiry.   Not suprisingly, the Tower 
Commission kept Gray and Co. out of the investigation, 
in spite of the facts that several key players in the 
scandal had worked for Gray and Co., and Gray's Madrid 
office was suspected of involvement in the secret arms 
shipments to Iran. 
    
Despite large gaps in the official inquiry, it has been 
established that Robert Owen, Oliver North's messenger 
and bagman, worked for Gray and Co. after leaving 
then-Senator Dan Quayle's staff in 1983.  Owen worked 
primarily with Neil Livingstone, a mysterious figure 
who claims to be a mover and shaker in the intelligence 
world but who is described as a "groupie."   Livingstone 
worked with Ed Wilson, Air Panama, and as a front man 
for business activities sponsored by the CIA and Israeli 
intelligence.    Owen and Livingstone traveled 
frequently to Central America to meet with the Contras 
in 1984.   An interesting footnote to Iran-Contra is that 
in 1986, Saudi Arabian arms broker Adnan Khashoggi 
hired Hill and Knowlton and Gray and Co. to milk 
maximum publicity out of his major donation to a $20.5 
million sports center, named after him, at American 
University.
   
   THE FOURTH BRANCH OF GOVERNMENT

The pattern of influence peddling and insider abuse is 
clear.   The potential for real reform is less obvious. 
Despite his stated intention to restrict the influence 
of lobbyists and PR manipulation, Clinton's reforms are 
viewed with cynical amusement by those in the know. 
Although newly restricted from directly lobbying their 
former agencies, retiring government officials can 
simply take jobs with PR firms, sit at their desks, and 
instruct others to say "Ron, or Howard, sent me."
Nor does the updated Foreign Agents Registration Act 
have real teeth.   The act-legislated in 1938 when U.S. 
PR firms were discovered working as propagandists and 
lobbyists for Nazi Germany - is rarely enforced.  
While it requires agents of governments to register, it 
omits requirements for agents of foreign corporations, 
who often serve the same interests.
    
And if loopholes for lobbying are comfortably large, 
public relations activities remain totally unregulated 
and unscrutinized by any government agency.   Given the 
power and scope of PR firms, their track records of 
manipulation, their collusion with intelligence 
agencies, and their disregard for the human rights 
records and corporate misdeeds of many of their 
clients, this lack of oversight endangers democracy. 
Careful regulation, stringent reporting requirements, 
and government and citizen oversight are essential 
first steps in preventing these giant transnationals 
from functioning as a virtual fourth branch of 
government.