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by hfaylor23 from denver

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ABOUT HALLIBURTON

Iran

"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," Senator Max Baucus (D-MT) the ranking Democrat on the Senate Finance Committee said in February 2004.1

As investigators from 60 Minutes discovered, Halliburton has used an offshore subsidiary incorporated in the Cayman Islands (where the company has no oil and gas construction or engineering operations) to trade with Iran, a country that the Bush administration has described as part of an "axis of evil, arming to threaten the peace of the world."2

Federal law disallows American companies from transacting business with nations that sponsor terrorism, but foreign subsidiaries of such companies are not banned from such transactions. In May 2004, the U.S. Senate voted against legislation that would have stopped companies like Halliburton from using offshore subsidiaries to invest in Iran. The legislation was defeated in a 50-49 vote, mostly along party lines.

As CEO of Halliburton, Mr. Cheney lobbied the Clinton administration to ease sanctions on Libya and Iran, according to various news reports. "I think we'd be better off if we, in fact, backed off those sanctions [on Iran], didn't try to impose secondary boycotts on companies .. trying to do business there," Cheney told an Australian television interviewer in April 1998.3

According to the Financial Times, before he was elected (but after he resigned from Halliburton) Cheney "has said the company is allowed to operate legally in Iran through its foreign subsidiaries."4 "What we do with respect to Iran and Libya is done through foreign subsidiaries, totally in compliance with US law," Cheney told ABC Television's Sam Donaldson. When Donaldson suggested, "it's a way around US law," Cheney replied: "No, no, it's provided for us specifically with respect to Iran and Libya."5 If you're a big multinational that's able to incorporate around the world, you don't have to worry.

As Vice President, Cheney led the National Energy Review which concluded in 2001 that the US should "level the playing field for US companies overseas" and recommended a comprehensive review of sanctions with consideration given to US "energy security."6

The Financial Times reported just before the Iraq War in March 2003 that "the Pentagon is drawing up a blacklist of non-US companies investing in Iran's energy sector, with a possible view to barring them from US-awarded contracts in the reconstruction of neighboring Iraq."7 In 1995, President Clinton passed an executive order barring U.S. investment in Iran's energy sector.8 In 1996, Congress passed the Iran-Libya Sanctions Act, which seeks to punish non-US oil companies that invest $20 million or more in either country, and which has been a source of friction with key US allies, including France, Germany, Russia and the UK.9

Halliburton says their firm is in compliance with U.S. laws.

But in a letter to Treasury Secretary John Snow, Baucus and Finance Committee Chairman Charles Grassley (R-IA), 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. ... We are concerned about this specific example, and about the possibility that this may be indicative of a more widespread problem."10

In a letter to New York City's fire and policy pension fund managers, who have also been raising the issue on behalf of Halliburton's shareholders, the company said that Halliburton Products and Services, a Cayman islands firm headquartered in Dubai, the United Arab Emirates, made over $39 million in 2003 (a $10 million increase from 2002) by selling oil-field services to customers in Iran.11

When CBS Television's 60 Minutes program visited the address where Halliburton Products and Services is incorporated in the Cayman Islands, they discovered a "brass plate" operation with no employees whose agent - the Calidonian Bank -- forwards all of the company's mail to Halliburton's offices in Houston (instead of the company's operations in Dubai), "indicating that decision-making authority may be in Houston, not the Cayman Islands or Dubai," according to the Senators. In addition, it was reported that Halliburton's operations in Dubai share the same address, telephone and fax numbers as Halliburton Products and Services - an indication that the companies do not function separately.12

"It is extremely disturbing to hear media reports of possible violations of our anti-terrorism laws by prominent American companies through straw corporations established to evade U.S. law. What makes these charges extraordinary is the involvement of the Vice President, since Halliburton Products and Services began operations in Iran during the time that Vice President Cheney was CEO of Halliburton," Rep. Tammy Baldwin (D-WI) wrote in a letter to her colleagues.

The U.S. Treasury Department's Office of Foreign Assets Control recently asked the company for new information about the subsidiary, according to a filing with the SEC.

In early March 2003, the SEC's new Office of Global Security Risk announced that it would be hiring five full-time staff to look at companies with ties to rogue nations.13

ConocoPhillips agreed to cut its business connections with Iran and Syria in February 2002.14 But Halliburton uses its ability to incorporate subsidiaries all over the world to evade any U.S. restrictions on foreign regimes that are considered too odious for the legislators in Washington.

During the 1990s, under Cheney's leadership Halliburton did business with the former Nigerian regime of dictator Sani Abacha, a brutal military dictator. The Abacha regime threw thousands of political opponents into prison, and executed nine environmental activists, including the playwright Ken Saro-Wiwa.


More Information

Halliburton's detailed report on its business in Iran
CBS 60 Minutes article on tax havens used to skirt U.S. export bans
New York City Comptroller's Office
Conflict Securities Advisory Group
Senate Finance Committee
Congressman Henry Waxman's Letter to Donald Rumsfeld


Footnotes

1. David Ivanovich, "Deals in Iran, Syria appall senators," Houston Chronicle, February 19, 2004.

2. State of the Union Address, January 29, 2002.

3. David Ignatius, "Dick Cheney and the 'Great Game,' " Washington Post, August 27, 2000.

4. U.S. Companies Move Quietly into Iranian Markets, Financial Times, October 5, 2000.

5. This Week (ABC News), July 30, 2000.

6. Guy Dinmore, "Traders with "rogue" states may fact sanctions, Washington Post, July 26, 2003.

7. Guy Dinmore, "Pentagon to blacklist companies with Iran ties," Financial Times (London), March 29, 2003.

8. Executive Orders 12613, 12957, 12959, and 10359.

9. Maureen Lorenzetti, "Oil firms hope US lifts sanctions against Iran, Libya," Oil and Gas Journal, June 9, 2003.

10. Charles E. Grassley, Chairman and Max Baucus, Ranking Member, letter to Hon. John Snow, Secretary of the Treasury, February 19, 2004. http://www.senate.gov/%7Egrassley/releases/2004/p04r02-
19.htm

11. "Halliburton Business in Iran - Global Overview," (memo to NYC comptroller), October 21, 2003. http://www.comptroller.nyc.gov/press/pdfs/halliburton-p
r03-12-102/Oct21-03_Halliburton-report.pdf

12. CBS 60 Minutes, "Doing Business With the Enemy," January 25, 2004. http://www.cbsnews.com/stories/2004/01/22/60minutes/mai
n595214.shtml

13. "SEC to Scrutinize Companies Doing Business in Rogue Nations," AccoutningWEB.com, March 8, 2004.

14. "ConocoPhillips: Ties to Iran, Syria Will Be Cut on Urging From Pension Funds," Wall Street Journal, February 11, 2004.

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1. Exuberant nationalism

Fascist regimes tend to make constant use of patriotic images, slogans and symbols.

National flags are seen everywhere in public display. Territorial aggression is explained to be mere destiny -- an unbidden greatness thrust upon the nation by history.

It is this burden of unique responsibility that now raises the fascist state above all previous constraint, no longer bound by international obligations, treaties or law.

2. Enemies Identified

This national cause is identified as unity against enemies - The people are rallied around a unifying patriotism directed against some common threat: communists, liberals, a racial, ethnic or religious minority, intellectuals, homosexuals, terrorists, etc.

The state's message is sometimes couched in an easily recognized religious theme. Amazingly, this language is used even when the full context of the teaching shows the meaning to be diametrically opposed.

Dissent is labeled "siding with the enemy", and therefor treasonous.

3. Rights Disappear

Disdain for human and political rights - Fascist regimes foster an artificial climate of fear by intentionally amplifying stress and anxiety. Citizens naturally feel a strong need for security and are easily persuaded to ignore abuses in the name of safety. The few still willing to question are met with bullying and smear campaigns of intimidation.

Legislative bodies, if still in existence at all, are cowed into rubber-stamp submission with occasional ceremonial opposition. The judiciary tends to become activist in support of state views. The public often looks away, or even enthusiastically approves as rights are stripped away.

The concept of the individual inevitably yields ground, exchanged for the promised safety of the all-powerful state.

4. Secrecy Demanded

Obsession with secrecy and national security - The workings of government become increasingly hidden. Questioning of authority is discouraged at all levels of society.

From office talk at the water cooler up through the entire apparatus of rule, guarded speech and secrecy become ends in themselves.

Troubling questions are muted and entire areas of scrutiny are placed out of bounds by simply invoking "national security".

5. Military Glorified

Supremacy of the military - The military establishment receives a disproportionate share of government resources, even as pressing domestic needs are neglected. Individual soldiers and military culture are glamorized and made constantly visible.

This provides both an object for public glorification, as well as sharp warning to possibly restless citizens that the power of the state stands close at hand, ready to use its great potential for violence.

6. Corporations Shielded

Corporate power is protected - Typically, a segment of the business elite plays a major role in bringing fascists to national leadership, often from an unsavory obscurity. This marriage of big money and raw violence is often considered by historians to be the hallmark and backbone of fascism.

As these business-government-military interests meld, the significant threat of organized labor is clearly recognized. Labor unions and their support organizations are either co-opted successfully or ruthlessly suppressed and eliminated as soon as possible.

7. Corruption Unchecked

Rampant cronyism and corruption - Fascist states maintain power through this relatively small group of associates, mutually appointing each other to interlocking and rotating positions in government, business and the military.

With this degree of control, they make full use of both official secrecy and the ready threat of state violence to insulate themselves from any meaningful criticism.

They are not accountable and are shielded from scrutiny in a way unthinkable in a democratic society.

8. Media Controlled

Controlled mass media - Sometimes the media are controlled directly by clumsy government functionaries. At other times, sympathetic corporate media insiders shape the themes indirectly, and therefor more skillfully. Image regularly trumps content as the "news" is presented breathlessly and with flashy stage effects.

A practiced formula of tenacious repetition brings even the most absurd lie into acceptance over time. By design, the very language itself and the coloration employed will push alternate views "out of the mainstream".

The terms of any remaining debate are narrowly defined to the state's advantage, making it easy to marginalize a truly differing perspective. Censorship and "self-censorship", especially in wartime, is common.

9. Rampant Sexism

Rampant sexism - Governments of fascist states tend to be almost exclusively male-dominated. Traditional gender roles are made even more rigid and exaggerated.

Condemnation of abortion and a virulent homophobia are commonly built into broad policy.

10. Intellectual Bullying

Disdain for intellectuals - Fascist society tends to create an environment of extreme hostility to critical thought in general, and to academics in particular.

Ideologically driven "science" is elevated and lavishly funded, while any expression not in line with the state view is at first ignored, then ridiculed, then challenged, and finally stamped out.

It is not uncommon for academics to be pressured to attack the work of their insufficiently patriotic peers. Writings are censored; teachers are fired and arrested. Free artistic expression in new works is openly attacked, and existing works deemed unpatriotic are often publicly destroyed.

11. Militarized Police

Obsession with crime and punishment - Fascist society is often willing to overlook police abuses and forego civil liberties in the name of patriotism. Long jail sentences for clearly political offenses, torture and then assassination are at first uncomfortably tolerated, and then start to pile up to become the norm.

Often a national police force is given virtually unlimited power to snoop through the civilian population. Networks of surveillance and informers are employed, both for actual intelligence gathering and also as a means to keep neighbors and coworkers isolated and mistrustful of each other.

12. Elections Stolen

Fraudulent elections - In the disordered time as fascists are rising to power, the electoral arena becomes increasingly confusing, corrupted, and manipulated.

There is rising public cynicism and distrust over what are widely believed to be phony elections manipulated by moneyed influence, obvious media bias, smear campaigns, ballot tampering, judicial interference, intimidation, or outright assassination of potential opposition.

Fascists in power have been known to use this disorder as the rationale to delay elections indefinitely.

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hfaylor23

rabble rouser and all around devil's advocate. i argue for human rights, civil rights, and speak for those who cannot defend themselves. i am a sceptic in the true sense of the word, as anything that is presented to me i have to look deeper into before i can form an opinion on the matter, sometimes taking years to make said opinion. i lean way too left for anybody here to give me any credibility, but have argued with the most virulent patriots until they were backed into a corner and rendered speechless.

Member Since: 1/29/2007