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FILE NAME: WR Grace (WRG) DATE: April 12, 1983 DOC#: WRG013 DOCUMENT DESCRIPTION: 1983 Village Voice article on Peter Grace BTHE VOL. X X V in N d 15 THE W EEKLY N EW SPA PER OF N EW YORK \? R IL 12. 19M 90e - Chaka flaunts It Thulani Davis' . (Page 61) ED ITO R IA L In Defense of Standards Robert F. W aiter Jr. nas had seven weeks to percuarie us he is capable cf tunning the New Yor;< Tip school system. He sas appeared on teievtson, given newspaper in terviews, and participated :a rbrums with the other -andidates, and he has .-nntinuaily failed to con vince anyone, including many of his supporters. Since Wagner'S'suppors is so thin and the opposi tion from educators and minorities so deep-seated, the mayor and the Board if Education would like o hasten the select ion nrocesa. This week "he ' even (Continued on p. . The Trouble withWagner 3y Wayne Barrett :The Bob Wagner J r. vho is running for chancellor is the same 3oh Wagner who's beer, tarrying much of F.h Koch's race baggage for store than five years. Make no mistake about 'it; Wagner'is not what he seems: a white man who accidentally got in the way of a black ambition. He has struck this sympa thetic pose, trying to counterbalance his may oral patron's strident ar rogance with, his own (xjyish vulnerability. Bobby wants the winning Advantage of being ' Koch's candidate without the disadvantage of half a ' decade's (ConL on pcge 7; State of Grace Is'"iaIsiGThlrerseaLirfeeAMfteartKteeiscui aTchr'SfS Reagan's Friend Tries By l&aid State to B ury the Past \ JSws fe a r la s a Tiers Hiera%-r RichardHenryDanalandtheCoast 'jj0p t y - c T - v . . ' _ \-iSf PtfdS9mm j. ^^j-Sdodm andFenmnsmW fW m " V . By J M b G crta kk"V- Follow tu s is a if e r Gcebbel's Revenge 3 y S k i 'rc-n so n tS m tih INDIA vs.4GANDHI' Fact, Fiction, and the Oscar Frontrunner Bv Elliott Stem (B 43. Bv-Joe Conason with Martin A. Rosenblatt This month a special commission appointed by President Reagan will present studies proposing to reduce federal spending annually by its) billion or more. Chaired by J. Peter Grace, who also heads the multinational conglomerate Yv. R. Grace & Co., this body of corporate executives, lawyers, and lobbyists deserves more notice than it has gotten so far. not only because it is so unbalanced and so riddled with con flicts of interest, but also because its aim is to undo four decades of federal domestic policy. | The central role of Grace and his company,! with their many connections to the extreme right at home and abroad, has significance in .self. For to study Grace is to understand how little novelty then is in Reagan's "new right," and how much this administra tion and its adherents date back to the reactionary right of the '30s and '40s, to the diehard opponents of the New Deal and the appeasers of fascism. Since it was organized by Grace last spring, the President's Private! Sec tor Survey on Cost! Con trols (PPSS) has under taken, in as much secrecy as it could manage, what Reagan calls "the largest effort of its kind! ever mounted (Cont. onip.}0) ! And | | Suicid is j Confession *.Vu' /rv a x G a n d h i in A v vi.-d U e n b o ro u jth '* f m Michael\ ; Fcingold on \ c,mght,Mother1 (PSI) | i \Z The Co Peter Grace has long been a contrucu' buz :n 1981 he took his opinions pus : ; enthusiastic audience in the White . V ; By ,/oe Conason w ith M artin .-V. R osenblatt ' >r;:r ,,re oast ! to MvtUX .ioilan mu mprove the working of gov- ernm er'- ' !'j size and comprehensiveness are bol bisrmied. With some IL*00 people working :uil- anti part-tim e. '.he PPSS s preoan v one of '.he ta rte s t advisory com missions o A m erican historv. But heme', as r- ragan also promised. it "will give js an uvective outsider 5 Mew" u leoerai Agencies and program s is '^erv muen : 1 count. .-h o r.iv aster '.he p re s id e n t announced 'he ' anon of the surv^v, his counselor L*se i!! sent a memo to the head executive Branch departm ent and rgir.g ,.nat thev "irficiailv hesig- ir lenutv ts vour organization * iMro-un -vtth '.he 'earn. B in wui irate 'he :. ;eth 'ev<i noncem md i 'hr h*:rv**v <]eierv***. ` Mer^e ts;s -*n :->n 'ta l f person, ^ar.et i -(< l u i l 'ime n the APRS "e mrnerce D epartm ent, .irvn her he president i special asjis* .i:' h!t iHairs, ins also 'aKen i * 1he i ' i'S S e tfu rt. "fm ners set to work penning Cl. w.m{ c r '.h.isis. nenavior. Ameling. tr.d ci- :ntier 'he ir r i tin v >i i n .. i-;,- i|(;nc nnerent croups, and. v i 'u:. i .s-M-r 'egroe, the press, .naced, p w HrfWH o**ai<e<i wnen the gun-tot- :v_' h-jee ''rmieil oneiiv came untier hr? .Lit summer, *itn for maxing in n- :;'c r* r. remar s a pout Huerto Ricans ana u-r his umy.invA connection with a con- -icteu :-az: war criminal. He s not a man to uiow mumr emnarra-ssmenls to >iand :n 'he `uv i his purpose. ive- ' vesrs tgo, Peter Crac? 'non c.i-r -wniinnv im indcl ov his grand- i.iP r- ' ;,fin ' (11sse 11 ' . race. More then i ,r-u r .. m was ;><>rn into a weal Ihv t al h- ;:;iv* t.ifiiv -vnli srtsiiHTHtic m ii uvna>i:c smnihons, .-.as sna[M?c5 and reshaped the ijnuiv msint-vs ;rom a shipping and trad- nut rompanv with Mist tracts oi land 2nd mines n x"uth America into one 01 the top t ht mira] producers n the world, with sii.'.r.u -1-11 interests that span ever/ conti- nrnt n energy, natural resources, ind i ',nMuti<'r rwKis. Anil h r ima iiern heard tmm mi ;m mcreaamg nttmlwrr of capan- ties ;u;'dt>niied anu-C um m unist. coroo* rate speculator, adviser to presidents, !?jder hi the prestigious !av Catholic Kmgnlj <1 Malta, irni expert >n Latin Amenr -i. Lven Before R eagan's aacendancy, Grace vaa tnnwn as the sort of gaobv, opim o 'ated husm esam an who Pom- hsrcln! irienda and actjuam Unce* vuh memoi h**mnanin< our miKiern de- (.adencf'. wmch he tmda reilected in sexual immorality, rowing dis/eapect for iu* thoritv an im pertinent m&u media, and assorted ills iike aitirm alive action tnd cnvtrnimenial activism. Grace haa lon< f>een a contributor to 1right-wing initKutions and causes, but in 'JO1 hr took hi opinions public in a bi{ way tnd found an enthusiastic audience in the Ahte House and th e bueioeM com- mumtv. A/tirr ajairning his corporate il&if to compt e "detailed ita tu tic e i charu" bowir^ the awfui im p act 0/ prtsfrewve Uxacri and domestic pending 00 the U-S. economy, Grace be*** buying TV time Ld newspaper ipacs to bolster the **K*(im procram of econosaic reform. t%- pesUliy the auu*rve reducUone in the top " ! b e l ie v r .-vt-r-of their conduc. lax rates '>n comes and 'h e the tax on canit.i. In recognurtn country,'' .01 A - WOO.ydt id "lc o i,. preem inent id '.< : Oil. and hv R fS ii:: A lew rnnni: ^ . rspeciailv '..he M eesrtdH. 've^tir, and his aides n* counterrevoiutic-n -- tion of vociai etr/ec programs, [n f.-i'r: nounced the f rmv named Grace to Within wetna. tween (}race and, German chemist ' 1 at Auschwitz 1side' public for the 'hi." After surfacing on mer of the <- ship em ergni 1 vol Um venity wheaidi'- ner to honor <. rs rr pven tnoory to > w queU the Veshiv community. p a p e n H ie The Yew York Ttria* aod TSe W ashington Post., the M r tr 'o r n a r aiec down. T b e ,Amb its discrsctw ocud mars faded entirely, tf onxy Gnscs bed been to Veep his mouth cioeed a wtuie lor ^ z :. ` Leaa than two month* after the uproar subsided. Grace sddrnsaed a convention in Dallas of the American Peed xod Gram. M anufacturers Aaeocistion 00 "The ?r> c- iem of 3ig CoTemment"* L'n/ortunatac-for Grace, the Ptgjfwt'problem * :n chart num ber 21, heeded "rS erto PLcar. ?ood StamDa." " - - . This beauty detailed the U 3 . erpen- diture on food atamp in rhjerto Rico, irvt footnoted the addionai cost u e n 'oen Puerto Ricans living in New Vane Cltv - *eporter from C PI v as present xnd h e a r: Grace sav, " I'v got aociipg gm rjtRuerto Ricans, but this it 4 Jttie muen XO.OOO live tn New Y crt. m o they're on ood stamp. 3n `Mus fooa itam p rrcg n m ;.3 basicaiiy a P u e r r ?.;can . ' cram .'' i his wni oot only pLatant "seism is Sydney N-nanoery notec in the Tim.** 1 grotesque -'rror--fewer than s tru r: the .xiew r'nrK H isn an ia counted ,c :c ast census r^c?tv<vi food itamos n .h 7 ' The outrage nationwide than `.he <!<;m >ver A m nox Grace, *ho ciaims 'nunnem i:r aiitv," tr.ed yjicxlv :o *?d?em with .tenumentaj j rnnice jpc `n L itc:- " He apologized for his Mre'cucm r..i- 'a x e . ' in d (,v?n Bew 'a -N ero wnere his company has ong 's a c.o investmentsi to have nis atx v x y ":5c_2.. iccepted bv '.be isiandL cor.Mr-"st;ve : *- puoucan governor, Carlo .Romero "7 c ceio. A renoiuimn hemancinz galbere<J him - '.nan hhO uzt.v.u:>? - House. But 'be White Hour? v v " . moved. Thoae who might have rr.a c ta ';.- : missed Grace A' utterir.gs .is a.i ip e r r i. ~ need oniv consult .'.is Augcst mew m '.he John Birch hocif'.v 3 we" -. - sheet. The Revte-.j >( :ne "he tervnewer was John Geea-- an amate'-rr : " - who has been busy bunting c v r t iztr\< ;n the peace movement. This exclusive m tervew - nut -ur/ivor groucs ,\e t m a tisrupt the --Li tanceled. - n e e 1 appointment, ' -.as -luestioned ham cnection. vorace - -- 'h. muttering that the -j. i rood way for mv -e ' inn adding, " ! juin . '.it -..xi :o do with the ft? Lime .Veu3cj'aystor/, - d ms oast, aying, "You of Grace's special msignts: 1 '*Rees:0ne remembers that irpan _ !ence was used to apply erwaur? -. previous Administrations to r : t :e:er_>e spending, to expand social cm yrims, .irm. buy peace in American cities. ; " Grace: indeed. . . . TaVe Food Starnes, , that program started under President ; Kennedy at 5 MO million and went to - L : biilion. President Carter scheduled .t to go up to $13 billion. What President Rea gan said was 'No. it's not: it's going nacx to $10 billion.' Someone had to come into nzrmjiman Tora llantos, a -.,td a iurvivor of the Hoi- f .ric? 1 appoinUnentdi* m P-. W hite H ouse's r. -w ng days made it dear nr. ecu on to Azabroa m '-'t i n t turned Lantos A aces director of the ...mirai J a m W. Naocn, ; '-me? bLandly explained - m.n.-oi had "paid his debt r e BPSS moved ahead. ; the White House and provide ieaderamp. i Someone had to draw the line and sav, | T h is is the most we can uford.' T u c ; subsidized bastardy. How many smg:e J women with chuidren are there m A m er j ica? W hatever the precise number, the j budget for the Aid to Dependent Chiidrn progrtxm is bout $10 billion. That's three time* the entire federal budget, including defense and everything else, when I was m college (1936). So the question is. do you i have the right to take money sway from hardworking men and women who are he \m bros coo trove rry. earning $20,000 to $30.000 a j w and 'jthchiiaoo of etlababed, ipeod it t o (support ail U>esingk wocnort- lLm.'.c-j juk ma^or w w i- ; W E OFFER T H E FINEST IN A E R O B I C S < N A U T I L U S K "R: In other words, '.he federal program* ire so large that thev ire 'oruam ng hon* est people who worx. ana st '-he same time telling the beneficiaries m nl these in* come transfer programs -."at they have a right to live idly :n faLies*.' - *G; T hat's about :l ... ! believe that everybody has to suffer the conaeqencea of their conduct in this w o rd ___" Grace's extreme 'new jf these mis placed social expenditures corresponds quite neallv to the paranoia of Rees and the Rirchera. When t comes to food stamps and welfare :`>r fatnerlesa chil dren. nothing less than caoitaiism itself is at risk. Should all this be .gnnred as maunder ing, and the Grace commission dismissed as just another blue-ncoon waste of words and figures? Congressman William :nrd, a veteran Democrat wno heads f.e House Commit* tee on the Poet Office ana Civil Service, doesn't think *o. He te:a two days of hearings on the ?PSS j* t September, and asked the General Accounting Office to find out what it *aa ooing and how it had been net up. He rjpmly discovered that Grace didn t warn mm or the GAO to know much about tne urvey, that the process for clearing awav condicta of in terest was muddled, and that the survey !:tad undertaken a mission wed beyond ita mandate. According to White House law yen, a claim of foundation status ex empted the survey from the "sunshine' statutes which normally govern preaiden tiai advisory eomronuioni. At first Grace * livutenanu Uecuneo even tn pro vide a list of the executive* involved. The statutes contain injunctions against stacked committees, excessive se* crecy, and conflicts of interest. 1 The administration argued that al though the 159-memoer "executive com m ittee' of the PPSS was subject to the Federal Advisory Committee Act, the task forces performing the actual survey were noU--though every task fore was co* chaired by members of the executive com;mittee and reported to them. Why? Be , cause the task force members were not .`part of the PFSS per se, but were under iihe aegis of the private foundation. This, at least, wu the considered opin io n of the lawvers from Commerce, Jusuce. and the White House. Counsel to the GAO disagreed, as did Ford. and one law yer from Commerce admitted under quae.Honing, *tt u a question that is close." Ford. however, wee blunt: "I f ! did not believe in Santa Claus, l might think that somebody deliberately structured this in a ; way to avoid the provisions of the act. Do you think," be asked the lawyers from ` Commerce, "it just accidentally fell th at way?" "1a a sure e lot of thought wsa given to the setup of this organuauoo.'*earn the reply. This same carefree attitude prevailed . with respect to the select of members . for the PPSS. Resgsn had announced e broad spectrum from business, labor, and aides, but when Grace wee fi nally obliged to rsiaeet the list it included i no academics and one representative of Labor, AKlrClO budding trades chief Robert Georgina, who appears not to have been -- ignsd to soy w m y duties. It also ao Hupiaauca and only two U tfkv fnVTM secretary William T. Coleman, now a law- yer-lobbyut, and Jewel Lafontant, a law yer who. jj the sole woman on the execa- uve committee, is t Twofer." . i There was, of course, a reasonable ex- planauon .'or this tilt toward white male i millionaires, and it was given by Felix : Larkin, the former W. R. Grace chairman and a member of the commission who testified on behalf of Peter Grace at: Ford's hearings: "We have not inquired of peopie, nen we have invited them, w hat; their race. religion, or other persuasions) are." Since Grace and his aides were fa-' miliar with most of the people they named | to the commission, there was no need to* | ask uen a oueeuon. The only nonhusmees i | groups represented sra thn Heritagei i Foundation and the John M. Olin Foun-- I ilation. 'A'ith their weil-eetablisned buU' against federal social programs and in: favor of i defens build-up, this is clear evidence of a purposeful ideological bias.. The National Anti-Hunger Coalition* attempted to teat the law prescribing bal ance on ^residential commissions, and' lo*U Their lawsuit against the survey,; which charged that the executive commit tee is unrepresentative, whs thrown out hy Federal Judge Gerhart Geseil, who ruled that the iiw s requirements are "obscure, imprecise and open to interpretations," the preferred one being that which ex cluded any citizen liable to question the priorities of Peter Grace. Conflicts of Interest Congressman Ford was taken aback by the obvious appearance of conllicta of in terest in the partial list he obtained before' his hearings of lass force assignments. Why, oe u sed , was the former chief of a meat-pacxing firm co-chairing the task force wnose goal was to improve the effi ciency of the Department of Agriculture,; which regulates meat-packers? . Larkin answered smoothly. "We have a fine iine to draw, sir, between some tc~ quainuoceahip with the area and a lack of conllict of interest." ' \ Let us examine that fine line, begia-i ning with the Environmental Protection. Agency, whose capture by the industries iti regulates predates the arrival of the Grace! team by about a year. Actually, EPA ir only one responsibility of a task force! which is also supposed to uncover prob-i lems in the Small Business AdministraH lion and the Federal Emergency Manage ment Administration. The chief expertise! of executive* recruited to the task force byj its co-chairmen appears to be the produci tioo of pollutants: Thirteen members of the EPA task; force are employed by Diamond! Shamrock Corporation, and executives! from that oil, chemical, and plastics gianti are also serving as the task force co-chair-j man and project manager. I Dow Chemical, the epicenter of tbej EPA toxic waste scandal, has four m-- ben oo this task force. So while Dow refusing to allow regional EPA ol full scene to its plant in Midland, Michs-j gao. s i least four Dow executives bed frsej rein at EPA headquarters in Washingtoal Two other companies which figured) in the EPA aifair also have two membeflf sptaca oo the task force: Union Carbsdw sod Monsanto, chemical firms whoa* lob* bywta appear oo former Superfuad^edj CofMmatd on'nrzt i O yC ^- A :i c u d s o ffe r fre e o r : ; ies m cai is- t h e m e : . a e - c c i c s . d a n c e , y e g a . < a r a t e a!n d are fully e c - ooed w it h the tec rusticate N a u t u : t r - o m c r i n g s y s te m s as w e il as h e : . ~ ooois. s t e a m r c c - !. saunas. zurc>;r o a n d r e i a x m c - , ! h - * l t h <& ,p o r * i clu b 32!ai~'x''.'..'*.- 673-373. Open '& MlP - 227-74S0 a n e x c -e r-e n c e in c r e a tiv e c lo th in g `c r m e n a n d w e m e n C l o c i S<locf a* Ct -rw ^ *! wwi m. n , Mo Grnsburg TfceNameinNewYork For Men's B etter Clothing NAMEBRAND DESIGNER AND $. .14. .0. -$190 TRADITIONAL SUITS r~ NAME BRAND AND DESIGNER SPORT COATS . Single and V'neir-drrastnL W arm . Pure .Silk, P u rr Linen and n trn d i ^ j r .M f 'f N ) TU X *? (caturrs ' ; \ i IX )S. )R|-_SS and CASUALSLACKS. HK' SS MKXS. SPORT SHIRTS and NliCKWT.AR ATTREMENDOUS SAVINGS! M o e G in s b u r g M CN' BITTfR CLOTHING ' *2 n?TH A V tN U f, CORNR 7 \ ST., N .T . 2'?! :2 28 3: 5254 . ^OUiS Mo. i l%o 3 20o.m.-7 00 p.m., v , F >S o t l S u n 9 20 a m . --A 0 0 p .m . <, | m** a n d M r m ir t r r d l t i a r d t .( } do o 3<* . n a i i t f f d g a im n t Art expo . 5tn Annual x > vn y New Tone coliseum April rin*wnrvi s -ml imoortanr Hne rt'xr i me ends 4ft CiOKAl Over iOOnnioKors from 2S country Aft overs irmis Jew's iKitOfs coneaors ;)yCX'Srx'S --mfft VQUf featuring jn jnoJ' ''"J Cuitunt events OfO-Jiim erect CJOfiCt Witn artists Afruy c-tor*mvfiu--(t''onnpo*tntrntve orticui wamol aroon" efHigeCemennui ortnt ,ixj more 7-ri ;** to m e q r tw r n owo*< Friday A pril 9. ii-8 o fri S itu ro JY A oni 9 .11-8om Su n d iy AON11 0 .1V7pm uon ojy. Aoni 11.K M o m Com to m e tf*e o n* ''M ursaav AONI 7. 11-7om -vjmnvor* S6 Cultural Events Program at Artexpo rnursfljy *om i 'Open to me trade oniyi i soamt Suctmtut s m r e g w f for catierr oirectors 13 o*mCr**tm Concept in Gallery Mireettne 'ese ,e'Ti*fs <re uresentrO QV Oecor Frida oritj . non Functional Art: A Trend for t l w t f Mooer<or devenv ilusseii Editor m cmet 'nrenors 1 <Tl Mam Caroonre Art Buying tn m e Of Moderator icnard wamer Mynaqmq tOitor -e-Airroews/effer Ajrrnews tlprm Art In AstptlC F l x t l MooetJtor djtoara Ldtastem foiror am if*sArcnitaeture Saturday *ortt 9 tipmi conectm contemporary Art: w h en to MgMi Moderator Oae McCon4tny Oir or Arts Administration. `tew tor* umv ispm *ow ro m y ertim Moderator autn zieqier. Vice-President. SomeOy ParteBernet Sundiv *orti X) tipmi w h a n rt worth: A pprising and (muring w o r n of A rt Mumtnqton 8(oc*. Pres . nf Blocs insurance Co., heiaine Fmoewnan Partner Fenaeiman 4 Scnwarta fine Art Appraisers: Hftene rrosry Fine Arts Appraiser Aran imtrute w om n oo*--Thursday rnrougn Monday A/t worisnoos in Prinrmasing. color Tneory watercoior Painting anaOuO-studvOrawing A rtio e rs are mvted to participate nave tre 'or* cntiQued oy experts and tae nome a permanent memento FwtcnoAM Arrwort: The Jewel of interior Detto An mtngiAnq eimpit oy world renowned designers of functional art pteces Special ttgntmg e je c t s win set me mood fr mis dismay of tromoe oee noonng. sculptural taoies. nanopainted corsages of Wje a d oeo covertngs. carpet sculture. ucauered screens and many omet surprising 'canvasses1' MTMssJon to 9programs included th me entry fee. Don't MISS it! v-ia * '.s.m .. '(vnun'z `1is r K '.''.e ivtenc.' '-!r -v.fT.Nrr I, Tlftn Ix!.n : two '>rr|, .-'ir**iinne. . imi ( vvuub! mm: anv s primr- ~ n the pro* in-'. : ?n - rnetmea.* iji.r s. coal, and h. 'uul '.ave . ~ rt.-.:rg amiA in Mrs Lirtt ni s at'--.- - past sev- *rai f i n V. !{. : **-n emnrniied .n it i*MSt t tioren *<" - * --v r o n m e n ta l h.ipi t-H *round including tir, vMier, .nd r-v**- -e pollution. ndicer - ~ ' '? r'.PA taak '-irre O.-tH efv.rtr.: '.I * egs :s H oben : CMigo, -v Ill wnrt.t .. Irace. Aa le s i idicer. .ns r'ue * -j ' v-r*ee certain '-JL3K orcea on rvn s.f . ? -irvey's m an .ikjement olce am: i . i *:mseit*. Pedigo also oversaw twn o' t c tcm directJy .nvnivtvi wtth '-V. . i-rt .r.eresLa--the licpartrnenui of enerv- 'i uriculture. -iwvers ami su:: 'Vjuae Energy ind '!(immerra C.:r: ..rM. vnoee prob* :nc has !vi to the .*?** '. -: jecieaning at HI'A. -ire -<ntherirr " 'mation on Lhe i'PSS Ivmk force's .ir`: " n it '.he agency. The i)epartm?n: . -i.-rv. wee dea ineti for siunctiL-: * t':mmitration pians, haa mrr.v^: >*r::t :rom the advice of F,, !. (iui'-.r.: * ''iTinun. whnse iartfeat tuiisuiiari .:e !-)noco Oil ami L'onsolulalion '* t. J-jpnnt etiaon* fmlly contrla the T"-' 'uac force-with !6 memi>era wh;.e ' .'jjL-.to haa a co* chairman. Dttke ? ' Lcdle South I.'lililien, anti i'otn; :.'-c.rc Power all *ent members, u which ent tlx . ' . : Vrsunghoua, trat: " 'nsmn, leaiL-. -veifir* funos. *- '..'.1 :n t::rr s s tree 'rgment tf hit*'..- .:.t ...:V . "lair-*^ -- Man .' rr*-*-- ,'v 'oni.roLfC hv "r: .j :-3 f 'ncerred the ! r -t "..ment ! --_ cna::*-' ''m m 1 ;'-r .c -, s .iir-c- tor >f "> . Aicf- jno .rv .'Mr.s an e ie c :- live ---- '-`rrn.i :.'C3, Minerai in c i.'hem :--. ' rivira t up. the 'i.'.ace rem* panv -> "n-r .1 * n.-pM- r:or:da pnoa- p h a u --. : vento *. : ther members ?: this ',.Li ree 'Mi f*im ^uaxer O s t i rsrai'.. larges'. .ra:n anti and --* %i -.'.imoanv, largest T.ar.ufacturvrs U farming c<ju:> menL '.aak fore- s tirapiv caiieo `'nusir:^ .-p .t!3tcd r.ort.-hs a nd C o e * miwiK-r.s. ' -tow muen '.ixpayrra' mor.ev can :x? mv*i hv making the <'iv^mment`i manv --g^i.itor/ rvyjiri tittc efficient j questinnao:-, out there :s oerutniv a ;ot of monev m -* ^av^i >v oidistr/ :f theae bodiM are The \uic force mea* b en :nc:-:f!e a .obhviu from '.he Alliance of Amer-cao iruurera, the `.Tce-preaident for rates Duke Pow-r. md vrverti rep r-seru u v -a jf '^ ru holding X 3 panie. `v<n mnr- .rr.p:*^juve j ize array of -r.stcrM jonov-iL* from severu tna^jr j * '-rr.. who* -dienu "jve re cently oojded the American itock Zi- Amenem. the American* PetroUuio In* r t it u u , th National Ajv o o ju o o of Man* u/acturen' Subcocnxmtt on the Federal Trad# Comalaaion tod Anti-Tnist, th Calorie Control Inautute, the Interna* tfonai Air Transport Association, the American Meet Institute, the Salt In* dtute, the Manufactured Housing In* ititute and even the Scotch Whiskey In* sutut. Aside from lobbying Congress, these law firm also appear on behalf of the above*named trade associations land in* dividuai corporate clients) before the boards and commissions whose operation the task force is committed to improve; the National Labor Relations Board, the Federal Energy Reguwtory Commission, the Federal Trade Commission, the Fed* eral Communications Commission, and the Civil Aeronautics Board, to name a few of the most important. * Other Lawyer-ioobvisu also appear on the User Chan?* Task Force, the interior ind commerce departments task forces, and in nearly every case they represent clients whose business may be aifected by the department or agency under scrutiny. Role reversal between the regulators and the regulated is not the only theme of the Grace survey, mouth the examples cited above are hardly exhaustive. The aa the chief executive of an odflsld and mining semeaa firm. - . > .. | Boeing also has three board* member I who sit on the board of Citibank--Boe*. ing'i chief lender--with Peter Grace. ` j Motorola Corporation, which sells a i wida variety of costly electronics equip-j ment to the military, hat t virtual lock on i the Air Force Task Force. The company, has seven etsoioyeea working on it and! Motorola chief executive Robert Galvin trt the oo-chamnan. ; j Aa s leading member of the nation'll moat vocal military-industrial lobbying! and study group, the American Security) Council. Calvin haa strong view in favor; of s rapid defense buildup, regardless of) coat. O 'er the past two months Motorslaa has ubtained over $14 million in defenset coutrictx. . . About the only task force appointed by Grace which doesn't include a single per* son who may be affected by its delibera tions a titled " Low Income Standards and Benei'ts." Directed by well-com pensated chi sf executive of Abbott Leoo- ratonea itk. Stewart-Warner Corpora tion, 'Jus jroup is sure to !*nd plentv of fat, as Grace told the Birchen, in bueg- etary allocations to single m otnen and the other unworthy poor. ; = In fact, Grace's aide personally car* riedoot'aosM of the preparatory work for -: thto* im k force oa thaw bom's favnrite subject--food'stamp*, that pnwerv* o f' the Puerto Ricans. According to aa affidavit 5Wd by for mer food tad. nutriboo ernes sdrointatretot Robert Grcenatein. m pert of the National Anti-Hunger Coalition lawvuit,, ha wee visited last June 3 bv KUua. Scheye, a vice-preaidrnt of W, R, Grace who ia on. the PPSS staff. It m duringthis period th a t Grace peoola v m de veloping, memoranda for each task force recommending "U rtvu of opportunity1* for budget seringa^ : Scheye was accompanied when he called upon Greenstern by "a gentleman from a Urge consulting ir a ." and their interview lasted about in hour. JSchaye was principally interested, says Greenstern, in the food itarao program and how its allotment of nance was `ad justed to keep pace with food pnc.-*. 'Scheye) expressed the ^ew j - j t th e e mechanisms should prooabtv >?altered to reduce food stamp coat* uvougn reduced food stamp benefits La future veara. . . . Mr. Scheye clearly .Micateo that he and the task force were looring at paaic poliev change involving benefit .even in pro grams such as food iLine*, is veil m nl management and sdainistrstive issue*. H otedkw fird th e tth e fartw e e t o f -,, fore v a ia rrpfermg way* tw redee tto6(,99 ^ 2 f ^ * ' ccwx o f p r a g m a so d s as food aU M gkb |V S'^ t%. ^ r both through change ia the b>naflt'igrc*|tu r t to d throogtr B a r n e tm e a t iaaproei-J^ tvv*- * - ` Obrwcaiy this conflicts.:wftb ' Utemeot by Grace'*office sad the Hot that the PPSS wuuld cuocero solely with data lyatem a. paper e&pe,"4 pool, and the other ephem era of.bwrad I* ^ . ,- r . c cracy. G oogrvm sua Ford's staff auapertd th a t the ?P 8S m a y -b e tying it- - m enda Lions m with th e bud get politics > te Office of M anagem ent and B udgets I s f - V c ^ : Tact, Ford has repeatedly u U ad - OMH chief Dand Stockm an to erpUici'?tbd r.v ,f p ; ,V : survey's ties to OMB and the budgH cesa. Stockman's failure to p rovid e - ^;; ; ^wers haa >d Ford to consider purauia^ . ^ - / - ; ' ' the budget director with a con gm aiooai v "- ' subpoena .\nd other members of Cbof; ' gT iu sre urtine to grow uapiooua aa the I'PSS ,'rcomrnewiattona emerge. Sonny Monlgomerv. the Niiia*ippi Democrat - .. '" ` who haa oftx held wev over the Houe --- * Veterana >jfsirs t'ornm ittee. last month warn! tbe ?P SS to u y sway from the Veterans AcminiatraUon ftAcr he learned . that Last .'.Te hat unfed the riimire !ion of the VK and the ctintracling out of - Communi on ntxt pcxr other overarching premise is govern ment's use of goods and service*; not only thono it sireadv purcfiasea, but those it j might buy in the future. ' Frequently empnasixed in the materi als handed out to survey members and xm O A V lD H F = O X -D E S iG iM B - iiaff by Grace's central oifiee is the con cept of " contracting out" of government functions--a scheme that may or may not THE RIGHT STUFF ">e right design...he rignt cchstr>jction...;he save money for taxpayers but certainly makes money for oatever firm wins the contract. And this coincides neatly with the long-range plans of the Office of Man agement amt HuugiM to require agencies to contract out on a scare never con I. templated before. o, by the logic of PPSS, a number of the task forces are made up of people who sell goods or services to the agencies they ngm timsh...the right orico. Cur siatlorm Bed h a s a solid oaK frame around he m attress. The b ase and the neadboard are sax veneer olywood (not flakeooard). The base 3 cross-braced lor strength ana rests on ja iu stab le ievelers. All drawers are or\ stee l rracxs. Everything bolts togem er'noscrevrs). " h e oed is finished with rwo coats of DOlyeu rem an e (no sheilac. no cii). are examining, or who might sell them something next month or next year. An example of this syndrome is the fHEE DELIVERY INNYC Task Force on Federal Feeding, which covers a multitude of programs that* purchase food and supplies from the pri vate sector, it is ec'ectively controlled by food service companies: A merican Brands, ARA Service* (a vending ma chine and fast-food outfit), Carl Karcher Enterprises (also fast food) and Rich Seapa k ia seller of fresh and frozen fish). Basic Platform with 2 Orawers The National Fisheries Institute, a trade association, also sent a member to this SAME PRICE FULL OR QUEEN SIZE unit. Then there is the more remote possi bility of shifting Social Security's insur ance function to the private sector, as was recently proposed by Peter Ferrara, a new member of the Whits House staff who THE RIGHT STUFFING inside th e m attresscan cecirficu itto r you to ch o o se Because of 'he contradictory and seif-serving information oeing given out by som e -arc-setl stores The truth s mat any foam rubber m artress, m nerspring m attressior futon m attress will s u c c o r vou orooerly it c s ;ccd -duality and is guaran teed for u se on platform bees. We sell all th re e types of m attresses and w e guarantee them. formerly worked for the free market Cato Institute. The task force assigned to the Social Security Administration ia com posed almost entirely of insurance in dustry representatives whose com panies--Metropolitan Life, GE1C0, At lantic Mutual, CIGNA Corp.. and Sen try--might be weil ulus ted to take ad vantage of such s change. And finally, of course, there is contrac tor's paradise--tha Pentagon. While Felix FOAM M ATTRESSES j give solid no-sag support at low cost. Our 5/4" thick high-density loam m attress is p riced 1/3 less than our com petition. INNERSPRING MATTRESSES . have a bouncy mere racitional < feel. We feature me Sealy f Posturepedic mattress at a sur ' prisingly realistic once. FUTON MATTRESSES are r i'ec with layers of cotton oartinginat gradually com press fer a sen om orace backed by firm succor;. Larkin told Congress that the survey ex pects to uncover waste in the area of national defense, the choice of those who will ferret it out seems incongruous. Helping the navy to economise are executives from department store chain, an insurance bolding company, and a ooei-mining cooglomerate. But the rele vant skill roeidee here in two high-level representative* of the Boeing Corpora te.. In fact, ooe of the Boeing men ia registered lobbyist Dale R. Bebiooe, the company's "director of government buaimbs relatscoa," bo served until August 1/79 as deputy maistaal secretary for pro- cw eo eo i a the Defense Department' Borneo's auditor, Touche Roes, also baa BA StCiV ^cH 1 ?1t> oenury Grace 3 Full Queen $69 $79 B E TTcnR 3 V1mti^c.* tIV9 io oefHrty Grace 1 ..QJ Q >y B E rrrm o aiw m im o u v ...i 1129 J14r BASIC medium Nr own brand B--E--T T E R S----ly >S .a w Firm Model b ests.iy,fwvu. . wwcnoy.1, Full Q uoen S139 S169- B A S IC 5 'avW X 0 lc:m '.n M,,,,,q si6 g s ig g BETTER ? ia r'o r m .xSuCOCVt oesTS'tvwiw.m : Pull Queen S1 9 S11 s11g S12g $179 $199 two memtwn. and the task form to to tto ln d by Stanley .Wtjtor J u Jkw H *' irenorwheii bstad is survey doctometiU' T z3M LULL, Continued from p r rr n d ^ paft f b & T ` *' its service*. It wai evident last fail wh*o Ford held hi* iniuai hearing th*t the PPSS w** trsymg far from its Kiopo--d purpose. Much to the dismay o p'ettx Larxin, Ford produced at that hearing i copy of the work plan for the task forte overvetng the federal retirement lyitnm, which eatimated aggregated savutoorer i four-year period o S23 billion. "Sis mm. as the congressman noted, * u unlikely to !>e smortiied hv the purchase of a more effi cient check-writing macnine, [out only bv sharp cuu in the benenu paid to retired 'iHirfai worker. larkm muid only reinond by referring to a arrow Une of JemarcsUon between a xuicv and an es tablished practice ana lie program with wmen it a implemented. ... " Hut Ford wasn't deflected bv Larkin's renteei obsequiousness. re pointed out :bat the savings anticiojiteo n the wont oian could onlv Pe nad I'.mugn action bv .'.intrMs. and warned the i'PSS sgain sl reariing wnere it didn't "e-onf. Whether that warm nr > u '.eeded at ti wmI b*s-ome more sponreet after ail the innings of the I'PSS are "leased. There * a growing isense in Wunington that the i'i'SS mav :>e intended :a omoafanaa in hr budget" ; howdown how taxing piace vtw een the president arid "..he Uongreas. Lnd the comm itm ent o f ,. ?jter Grace to hr ideological ana programmatic goals o f tragan cannot be d o u b t . ;r :.hev are ,,oled ;n politics he has pursued for d e c A ' C o m p a n y * .-A sset Grace viso appears to "ave v e n drawn, -.** the ^earv to certain TA :*onts-- a r-rmal .ittraction (or the .-.esa t a com- ranv with investm ents "v.g:r.? from oii and chemicals to fast mxj inn sporting g'V'ds in over -0 countries. home of his involvement couid be at- Tibuted to the agency's rt.e is a protector Y '.'.S corporate in te r e st ioroad, for it m the eronomie* -i ferurai and .''Hth America that the Grace fortune was created and eipanded from , i 4 until the '.ait two decades. Like United Fruit, the dace ships, haciendas, and mine* turned into a symbol of exploitation of [.atm *<VKers and resources, ana '..he target of anger against "Yanqui imperialism.'* The increasingly vehement repetition if '.hat phrase, and the icuons engen- *.errd bv n were among tfe Airees leading F iler Grace away from f-at:n America alter he assumed control of V. R. Grace. Not ail his divestitures -u l-jtm invest ments were voluntary: Allowing the 1 ban revolution in i'JS, Grace proper- _n were seized without om oenM tion, or Nioien," as he put iL F.ver unce that bitter experience. Peter C race nas been an unrelenting adversary of "Csitro-com - taumsm." His Grace Foundation has made substantial donations uj anti-Cas- `.ro emigre group, and Grace advocated U.b. intervention to counter the attrac tion of the Latin m a ss to the Cuban example. ; President Kennedy, nose father Jo seph was an old acquaintance of the Grace lamily, took Grace's expertise lenously i and asked the executive to head s special committee of top businessmen in 1962 , whose assignment was to remains the | already foundering Alliaree for Progress. Much to the irritation of other committee ' members, like bankers David Rockefeller j and Waller Wnston, Grace turned the project into a one-man. w. They and other committee members disavowed Grace'a final report, which rejected previous Latin aid efforts' "tendency to 'export Socialistic ideas u>Latin America' when it seemed dear . .. that private enterprise held the key to sound national development-" The key portion of lh report, which Kennedy did try to implement at least in part, was a set of incentives to encourage U.S. investment in South Amenes. Wh*i Grace wanted, for himsetf and other American businessmen, were tax breaks oo investment ut any Laua American country, *od sst o jpmrwisas from the Contvmed m page 19 Dollars ber A lle s f ' T bn wrMddMch of hM eonfortabU ll-r-r ln< m a "o*ftot?:to' Wi IC Cnek. On . w w m i oeeu a c thuJv't Pskar G iw 1 ' ' InUrwsBtion-wrthU^i'tathoritiee.'Am- ^bros w * tw e abie to drcmorwnt the l^ ai , ban on the xoroTwar'driminais into tba U ^ H to candoct Gnre'hrnirwiaa. GrL, " .G r c w ia o ^ tla ^ ttfalf( 'A a b ro a ,* chatnieaj axpertiea. and m e cua* to ad -tair* him. m iadicatod in a Stoto Dwpan- meat mamoaboota 1958 letter Grace sent to then secswuiT.of 'ttaU John. Foeter . DuUm (who had ooce represented Farben Inlereete in the U-3.). "During the even yw% we have known Dr. Ambroa," wrote Grace, "and have bed the opportunity of working wuh zim. we have developed i very deep sozatration -not only for his ability, but rscre important, for hie char acter in term* of truth and integnty." Ln fact. Grace thought so much of Ambir* that his fnead Roger MUliien's tertii company, Cwisg-Milliiren, siso too* Ambros on for i wrtile. Tha Amsros cenario become* uvn more comoiet when the Nazi scientist resume with postwv German industry * examined. 3>tween 1957 and 1964. .Am bros served is s director of Feldmuhie .A_G., a papemaring subsidiary of `-he gigantic Fliex anglomerate--which haa. since 1975. acquired nearly 30 per cent o; Grace's stoct. Flick thua became by far the iaryest irarenoider.) Flier, inotoer family dynasty, piav*i .i role muen ,:ke '-bat of I. G. Farben in '-hr funding ana iraing of Nazism. Through an intricate sec of holding companies, pa triarch Fnecrtcn Flick Sr. controlled th? largest porjea of the coai. iron, and stee* induatr.es :u orewar Germany, jnd vas among the h.'xt inaustriaiiata to join ai? Nazi partv -.Lziseif. 3efore Hitler's elec tion in 1933. Tick had donated aeartv s tmilion deutscoe marks to a Nazi sluar. fund inowr. u tne Keppter Circle. These -ivestments began to pav within a few 'ears, when tne Nazis heio^-.i Flicx pressure me Petacnek family, Czscr. Jews who cwrea coai and steel proper.: Top) Coovicted w ar crim inal in Cerrnanv, nto "aryamring" their com T oie: right) Flick J r,, :he pany by seili.eg cut cheaply to Flick. Ac .ieir": and F ried rich Flick .t : cording to Nurenoerg indictments. Flicx nave iaoor, plu n d er, sp o ii.i and his men heid top positions in the Nazi -nem bership in the SS industrial r.ierarcny, which gave them ``vide author?.' over the procurement, use, treatment, allocation, and transpor A' iih in a 'ew v e a n a ft e r he fooic - ::str;ct. Am- tation of thousands of slave laborers anc T " i .` 'h e ''ir a iiv b u sin e ss in 19-tb. T.er.tor. Dr. prisoners of war.1 i.'-u: was *`>sing for wavg t o e x o a n i: i- "n 'ce?-egotisu on s Flick was found guilty in 1947 of slav* :;v rsifv . m d like 3 num ber it *."'F loon as poaai- labor, piuncer. Donation, and member .'.merican ir.d iu tn a iista , he saw the f y '.he -rcreaary meas* ship in the SS. The judge said he had .n r-ncm icaia. !'he a c tiu isitin n o f c n e m 1' ';A-M<;uir:rj []. :n '.'Jf)!. to the n in r r v r Tescsge more '`embraced the "oporturuty to take fud -r-jio-, :f j dinner advantage of the siave-labor program.' 'izi icier,t^t Otto Amb ms-- a mar. * he Ht'.rcrttes pf the and sentenced um to seven years m ."e p u o n a iiy v e ii q ualified "or 'V Further decided pnson. ' .ra c e A new ventures in to petrochem inn..-. .r me ?f the camo Meanwhile, .Tick's heir FYiedrich Kari m u ^ther ivTithetics. i.mnros. *no ileacribed h im se if hur:r<- nis '.nal at Nurem berg as "1 ;ji^;r- ''ur.a wr'rts. Ctir new t -S .3 :rovmg very Flick, Jr., woo was only 30 at the time of hia father's ursi, was sent to the Uni toil State to ieara soout businesa manage nnmiHt," waj underatandahlv m odest. . ;- :pros .-.'tiractenied his ment. Allied eiorta to dismantle the Flic* nau ">een a director, during the war. : '. *above lj ' mouisive," cartel were ewy partly successful, .and G. Farben, the m ultinational cnemic.i: ihing .Tinre deliberate someone had to take over the dynastv. ho .nngiomerate which fueleti and p r n t : : o 'irvraf.on, wnere 100 in 1951 --enortly after his father? .'rnm m e German war m achine. A n tic :o * :- - uv :.T3 rt.nausuon, sentence, xnong others, was commuted :ng .ong m sdvance that its aggresai'T.wnuid provote to an em bargo of -.tick'!. raw m aier.ali. H itler's hign comm and id. .me .'otten food. 3y ig :o i -v-ajv Farben . - 'lx F'.rs nad been by American Hign Commissioner for Ger many John J. McCIoy--young Friednci became a trainee at a small New York contracted with Farben to create amt -ur- ioe: ' ,'f from ail bank controlled by the Grace family. piv <vnLbetic suhstiiutea for rut)tHr. . oiivm Tuae not on/y 'Vhen this relationship between two jn d <ajMiime. Ambros was personally :.ir;e Tu.ns. put also dynasties began is obscure. But Grace rxin.uhle for the d evelop m ent o f ivn- 1.30 u;er the luoervuion of himself has said on occasion that the tbetic rubber, called buna, which wa* c younger Flick "is like a member of the he produced from coal a lo n g -vi'..- r-rno;T T:m".:c "Ports nv .Ascros and family," and a spokesman for Grace told m ethanoi and other fuel d istilla tes. J -.vyCUtri '.o tiitrov nanmirtsting business columnist Dan Dorfman in 1973 Ample lupplies of coal were avaiiah:-* .v-imentj .uTr the Ailed rctory, there that Peter Grace "knew the (elder) Flick for '.his enterpnse. but a steady isourre ; 43 tio<- '."..in "hougn -Mdence to convict well-----They were friendly, and (Gracel cneap labor m wartime was only obtains: ijin g Vi',-, ^-v^rai oLier Firoen of- reapected him very much." alter Ambros. along with other ' i -oam murder isd Lsvery. Yet Flick the eider went about rebuilding Farben orfir-aia, decided to locate ."in ."-vs Ti.paoie than Amoros got hia empire with great success, acquiring buna plant it Auschwitz, on the formr- a.m.ner v n im .-i, mil ne served only chemical and automotive companies in i'oiisn-Gennan border. -.rrr* . r m ' -,,3 -i^nc-vear term. .This cluding Daimler-Benz, the builders of Nuremberg records show that Amhfw vuited the Auschwitz site several timrs Iwt'ore comtrucUon, funded jointly :jv Farben sod the Nazi government, got un>lerwv. Worried by the shortage of Labor that would be caused by the imminrm rvncuoo U Foie* and Jew from their nifno* r.igm jv ? w n ,u*lined, for cp. tad (onr '-3 wrsri oo pro- <-"- -:tii 'o :usuon*i secuntv--the iKT.ir.g * .r>': '.be tscaoe of many t i u .Tim.-iaLs and codaoontors. ,ut rw>or>ov - u n suca few Am* roc ia sta a o , ,'mra the. tz a m ' f W Mercedes car*. Perhap Grace respected Flick as a capitalist of the old school. Flick "thumbed his oase" when asked to com- penxau th* mrrrvon of the slave Laborers who created has wartime wealth, in 1968. *,'//,f,Y#7. o n ! 3 O O L L VRSii..^ i Continued -ram page 4 Flick jpokeaman stated that the com* pany felt ;t .-.id "neither a legal nor a moral obligation to make payment" for using slave :arr in 1970, two years before the old man oim. hi* lawvert rejected a personal oie* from McCIoy and reiterated tha comnjrej arwniute refusal to honor . any claims of Jewish Holocaust survivor*. The (ie n in nreiw frequently con trasts the "puynov heir'* Freddy Flick with his "puniamcai" father. But they shared a propensity to reward politicians who served ..".eir interests, both ideologi cal- and material. That is what German prosecutors \xind nut when they began in 1981 to loot *to the 3candai of Flick donations :o r ecteo ofticiala th at :s known thrournout Europe as the " Bonn Watergate. The ever: fading u> this investiga tion began hen the r ck Group sold off its interest ;n Riimier-Benz, and chose to reinvest most u tne proceeds in W. R. Grace stocr Eo.d :n 1975, the Daimler Benz asseu -rougnt Flick 1.5 billion deutsche maru i cash, and an equailv impressive rrooiem: now to reinvest this pool of capi-ii vtt.noul paving a stiff tax on (he caniui jam. German law did con tain a looohoie rem itting the taxes to be excus?rkv,f >cerai minister of eco nomic atfairs considered the subsequent investment ''-orny of support," In other words, the ;:vmment could decide that Flick's plans wvancing a national objective. and firgive the taxes. The nourn ct a tax break of this mag nitude for tr.e Bavarian billionaire was liable to prm <? fury among leftist politi cians and p.'ssi.niv some newspapers, as Flick weil n?w .: w an extremely deli cate matter Jmc.n *rouirrd the sustained cooperation ;f friends in ail the-nation's major parties. in raids toon Fck's corporate head quarters. as wed as m testimony from subpoenaed T.icx officials and politicians, the Bonn prosecutors have discovered a secret slash fund 'tied to reward dozens of politicians considered helpful by Flick management. These 'donations" went es pecially to the rgnt-ving elements in each of the three :oo German parties. And despite strenuous denials from all concerned, mucn of the evidence points to a connection between the Flick money and the eventual tension by relevant ministers-in :.ne chmidt government to approve the tax break, Editorials across Germany refer to the matter as evidence that Germany has been turned by Flick and other businessmen into "a baksheesh republic," ruled by a "lobbycracy," in which "some mgh-ranking people of our state are not s nit nonier and more honest than the amul thieves of- suitcases and bicycles at the main railroad station." It's also quite clear that Flick, like Grace, has lung ^een most comfortable srX&`,iSi! - v`-*A*. " Hf>- 3&S Flick Sr. as an A llied priso n er in 1947 with, and most generous to. the fitreme rigntiat element in mainstream Jerman politics--the Christian Soctai Cmon party hased in Havana and !ec ry Franz Josef Strauss. Indeed Strauss--no. ac cording to Der Sptegei, receive -eariy a million deutsche marks from F*:ck per sonally--boasted to proeecutcr? of his role as an adviser to Flick in me matter of investments overseas. Having written the tax law mentioned above some yean back. Strauss advised Flick to buy :.ta W. R. Grace. . Grace and Flick were, according to what Flick told the tax au th o r:: , sup posed to institute " technology transfers" beneficial to the German economy. But the prosecutors say this was ' ever ac complished, and that Flick executives may have made "false administrative statements" in order to obtain the tax axempuon. Flick settled insteaa for three seats on Grace's board of directors. The investigation, which nas tragged on for more than two yean, is continuing, and a separate probe by Focai Demo cratic memoers of the Bundestag---some of whom were also implicated--** ex pected. Flick remains on the Grace ooard. Actually, VV. R. Grace' unsavory con nections actually predate the Ambros consultancy. During World War '.!. W. R. Grace was maintained on the govern ment's "watch list" of compam known or suspected to be trading with the en emy--that is, with the Germans or their suirogates in Latin America. Many Grace personnel in Latin America, according to State Department documents examined by the Voice. ere oncer surveillance by the U.S. government pecsuse of their ties to Nazi agents, particularly those Grace employees in the company's shipping lines or in Panagra, the joint airline ven ture with Pan .American Airways. The most egregious case wns that of Colonel Meiiton 3nto. a Bolivian armv officer hired by Grace to manage its airline business in that country dunng the war. Despite repeated requests by the State Department that Grace get nd of the pro Nazi Bnto--vno actually obstructed the deportation of known Nazis the company maintained him on its payroll for yean, insisting that it would be more dangerous to let him go. A military jiteiligence report from 1942 describes W. R. Grace as among "the worst" Amencan.comoiniea in its behav ior with regard to suspected enemv agents, and max rpeciric reference to Grace's Bolfvian general manager, who is described* aa an opportunist. This man was Brito's main patron st W. R. Grace, and the report summarizes Grace's at titude that "he is a Bolivian and a politi cian and know* how to make money for ua." It went on to say that "Thia is, of course, typical of W. R. Grace -St Co.'s attitude througnout South America." The region controlled by Coionel Brito in cen tral Bolivia later became a refuge for flee ing Nazi war criminal Klaus Barbie. -J.C . -.isr:! ..w CONASON Continued fn m p n tr 14 ! M IM tSWrfenirtitVki&ii t U 'Jnim an -- \ tht laTMCMrit. ->>,-: :-v. 1 7**Butthe did' more than reiyoo nports" . 1 and speeches'to win the stniorie satinet *~ ' cooounismGwliich was once listed as hia bobby ih'Who'i WTio. And his ia u m t in '-.** the covmi side of-American &2ti-Coe>* . munwt' policy even predated ba fury at; /--G Ftdel Castro.T'T;-? '/ . .-`y --:: Tv -.rtThe'first- of. several CIA proprietaries to be xpoeed-during the *6Ce was Radio . Free'Europe/Radio Liberty,, the-breed- casting agendas now funded openly*.by'^TT .the government. Whes they began in the eerly*'50i as part of a cold f i f d r i w , ^ the itations were trumpeted as- private initiativet;.And yet, fronting'for Radio '-'T *' Liberty waa an outirt'kiwwn initially'aa^vt the American Committee for Liberation fromBolshevism,' and later tusuy ss the --T; American .Committee for . Liberation. ` j J . Among its high-powered trustee*--in id- " dition to Peter Grace--were about s . : doan anti-Communist luminaris*. sev-- " | ?rai of them associated with domestic r*d- - 1 'saiting. At least a few. luch as.>villiam 1 Henry Chamberlin and Eugene Lyoha, * also had ties to- Human Evenu and the . .American Mercury, the chief propaganda | media for McCurthysim. - v-.- < The American Committee for Liber- sdon and Radio Liberty were set merely conduits for Western news to huddled fedom fighten. but, as Joan Loitus ar- ?u i t length in his recent book The Belarus Secret, mechanisms fer aauggi- .Tf hundreds of Nazi collaborators onto .American payrolls and into American communities. Lortus, a former Justice C-epar^nent prosecutor, explains Lhat this part of the operation was eonceiveq and -aured out by lUDerapy Frank Wisner. w*.o ran a secuon of the CIA called the 'Dice of Pciicv Coordination, with the : leasing of agency chief Allen Duiles. The .Amer.can Committee for Liberation raceived rir- ruaiiy ail of its money from W-jr*r3 CLA occe, and transferred it directly to other front groups set up to protect former Nam rodaboratora who had emigrated, with Wtsner's help and in violation ofLLS. Law, to the United States. Did Grace and the other trustees of Radio Liberty's parent organization know wrist Wianer was up to? Perhaps cot. 3ut one wonders about their innocence when Loi'tui writes that at least 90 per rant of Radio Free Europe's and Radio Liberty's buegets was coming from the CIA. Lr ihev bid know, they remained silent througo the eariy 70a, when a change in these arrangements was forced upon the Nixon . administration by a s e n of Senate hear ing* on the secret funding. .And while Wisner'i dream of "roiling back" Soviet domination of Eastern Eu rooe grow stale, the CLA had busied itseif in Laun America, Peter Grace s turf. Part of the grand anti-Communist al liance envisioned by Kenneqy m Latin .America waa set up under the adpic-s of OOR MATTRESS WANTS TO GO TO BED W ITH Y O R PLATFORM . . .! MomogD4ismsod comton. to*-q oussfy and solid value o<<x* so*d loam platform o e d 'n a m e im . Buy direct from <xd factory and . save at our o tactory-ioyou pr<et C*S or Wre tor'oi co<oiere prtc fcimg or praitoamtwo am) modw ' MEWYOfIX'S U R G E S T SELECTTOM OF PLATFORM BED MATTRESSES 2 0 E .7 0 3 L (Bet. Part Ave. 4 B*W*y) 777O G Nh*aw*wgrii xwiouu nvu Su** Fadery Hewr; M o u la l MM - . j^ JH a rv a U sM t-^ - D IX IfP M . the AFL-CIO as the American Institute for Tree Labor Development, or AlFLD. This was the moat ambitious, open, and ideological foreign project undertaken by American unions abroad to aate, and it contained a new lemenL -Jniike the AFL-CIO's previous foreign adventures, tins one was to be funded ana promoted ov American businessm en. G eorge Meany, a close friend of /r'K, choae J. Peter Grace to chair the board of directors. dome U.S. unionists began to wonder wnat Meany could be ihinxmg wnen they >jw Grace recruiting companies- like 'Jr.iied Fruit, ITT, and Anaconda Cop per--none renowned for their advocacy of venters' rights--to the isuse of "free trade unionism'* in i.atin America. T he pnrptwe gradually grew -dear enough. Whatever their political allegiances, the leftist unions in South America were more miiiisnt in their wage demands, and more bxetv to support revolutionary solutions to national problems. AiKLD trained young Latin workers in its Virginia head- i voived in some of the clandestine opera- quarters to distinguish such " Com* ; tiona of the revoiution 3icj before it took t munist" Influence hvcheinmionsl sad ta 1* ptrice tm'Apriili Whathappened ii*Brazil purge them. i on April 1 did not ;ust happen--it was These '`trainees'' did more than pro- planned--and piannea months in ad 'ride a dociie work force. They were in vance. Many of the trace union leaders-- strum ental .n covert U.S. policy for 'he some of whom were actuailv trained in our inatigation of rightist coups against leftist ! governments :n Brazil, Guatemala, `.he institute-- were involved in the revolution mri the overthrow of the Gouiart regime." | Dominican Republic, and Chile. 'When T he generais wno :oox .-ver from Gouiart j charges of CIA funding for AIKLD T g i- were not noted for svmoathv toward labor ! nated in such publications as ''he 'Sosa unions or worxers n general. They in : in%tnn Post. the Los Angeles T ines, and stitu ted the austerity program typical in | the St. Louis Post-Dispatch, Meany ha those circumstances. nded these iilegatinns, in Senate testi mony, as "the Commie line." Subsequent J. Peter Grace :s a dvmg exam Die of the | accounts r-v former CIA agents have con roots of Rcagani^m. He is a man who looks firmed '.he agency's dose ties to AIKLD. backward fnnciy to :ne lavs when busi But :n tr.e afterm ath of the !0*>4 miii- ness waa unlettered, -vnen nobody dared tarv overtnmw of elected Brazilian presi to isk atxmL hiring practice*, pollution, , d en t -loan Gouiart., AIKLD executive oi- laixnr ngnU. or consumer protection. Like ; rector William Dohertv let :hese com- the business Hass >f tne TOs, which | m enu slip during a TV interview: : snaped his consciousness and the at j "Some of Ithe AIFLD trainees were 50 titudes of so many wno now call them active that they become intimateiy in- 1 selves " conservative," Peter Grace is still plotting against the New and all u' tne hum an advances, from : xi nam r* to environmental protection, `.hatare part : its democratic tradition. ' His longing /o r that cast, wh*" plutocrats were bold, is redacted in lien- esnism: its friendliness faso:.'*r.-. ana fascists, its antagonism '-.ward socia. spending and progressive .nation, *vr>r. it3 dreams of the gold standard. T ie tpr." r.oiogy is different, the cu:\ic reist; :-,- r.ore Mick, but 'he biggest .irferencn N- '.veen the corporate ngnt '..ted ana now - Heat so few Amencans *eca.. -ome o: :r- :g:ier aspects of its oast. :.m oniv >:; u-,eif new because its f u e ~.:iorv rem.'.." uried. - iiMPfirn m i.sto nc* . z :-r.cmu.' -N-a-mcfi TV ; )>.nn hror-.r:, G - -.-.iute; Char ies I.annoi; 'o sa n n a ,n . .-.zi,01 e .VieniAro. Sai'v y. z.'W. -John . . j \:nr or.d v Scnn :zl. S a liv o . A'cr.iues and iter; irds Seri Crour. search. inc., m d Sheidon .Gnj. FUTONS % BeST F u / b W Loft Beds ^extraoruiiwynew yogurt ; Whitneys. _ Anda specialintroductory"fwoforone'bffec 1 You've never tasted a yogurt Bke th is before. 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