CORPORATE BRIBERY AND KICKBACKS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100100045-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: July 21, 2005
• Sequence Number: 45
• Publication Date: June 16, 1976
• Content Type: OPEN

AnnrnvPd?Fnr RPIPasP 2005/08/03 - CIA-RfP79-00957,4000100100045-6
lane 16, 1976
CONGRESS ONAL RECORD -SENATE
-_
Irlier vetoing separate bills tnae woulu caeracterret1Ue UV ua uaga v -___ "_
slay the start of the program to have the office. Few, if any, of his predecessors have appears, that he wv too far out in front of
ealthy districts support the less affluent attacked the job with as high a degree of the people-warn of the dire conae-
es He was helped by the fact that the so- intellectual curiosity and hard work. Lucey, quences of letta Dads and bridges deterio-
led hive aid concept was to be phased now 58, is no bark-slapper or partygoer, nor rate, rail service wither away and city bus
rider 9ayexrs, with only nineteen of 416 is he much interested in the ceremonial systems operate th serious deficits. Appeals
sdhtrlri districts being immediately affected. trappings of office. He is a quiet man, im- to conserve fu and save the environment
AI1 Lowe _ property taxes is obviously a yelled by an urge to succeed in whatever he by placing 1 reliance on automobiles met
popular 'slue and Lucey has exercised great does and is committed to learning all he can resistance fro a car-conditioned society. A
t~ndoetary ingenuity to make it possible. The about the operation of state government. It split bet wee rural and urban legislators and
b}idget vbills he has submitted are carefully may be relevant ':hat his academic degree is the propos s to raise additional revenues
ctin;lt ructed, with selective taxes on some in philosophy, slot business or political from heavi fees on vehicles (as the legisla-
s eeial-iii erest groups and new administra- science, but he was also a successful real ture near an election year) combined to
L"i~ve procedures that have accelerated pay- estate man before seeking publi, office. send the 11 down to defeat.
riients and thus accumulated more interest He turned to state party work in the late He h not succeeded in getting all the
fundfi ,held =by the state. In addition, a 1940s, helping to bring the Democratic Party reforms that he ,13 wants in the prison and wet-
_., fare sys ems: he has not managed to put cor-
l
id fo
san
za . .?a? ??
n financen tnrougn taxes are now pa
y the imposition of, or increases in, fees. came a dominant:, forceful party chairman in has n gotten, a no-fault auto insurance
Luce hasalso leaned hard on the Wisconsin the last 1950s, when Democrats; candidates syste ,and the state has not moved toward
office in Washington to capture more federal began surging into command of the state the la d use and other environmental mess-
- of nine TT 4 R.en- ures at Lucey backs.
hi
h
t
i
n
a
Lam'
ns
ail iscons ,.
ail federal revenue sharing funds into the resentatives; control of all state constitu- In ease'srY' w
yew se Tio0l for a third term, but that may de
aid formula, thus lightening tional offices and a majority in both houses will ry
pgoperty ts: Ile has threatened to reduce of the legislature, by 1975). He was a state pen on what happens in the Presidential
t a race for Con- elec ton this year. It will not be easy: Lucey
l
1949
os
the school aid formula next year if revenue Assemblyman in
, shar` has de enemies and twelve years in office is
Is not'conttriued. by the Congress; grass in 1950, served as lieutenant governor
n
P Warren P un recedented for a Governor of this state
sor
d
G4
'
"
pre
eces
the Wisconsin Con- under his
this this pp utsd'e re
on
, i eed, eight years is unprecedented). How-
gtessional delegation 1-1 11 -1 to battle for extension Knowles. .. . r ,.-- --1e+- into e ev , given his record, the job's still not
_. . - ....,,-.r naeior eae-
I`he tax coiibessions to industry are re-
markable ixr a state where it had been as-
umed that hiodratIc Governors were not
patticiifar'ly friendly to_the- business com-
ihunlty. `But Lucey-a fiscally conservative
Governor when fie" has to be-saw the ad-
vantages "of increasing the state's revenue
base; at the same time, he helped convince
lfnionleaders` that business improvements
When Luce encouraged-Republican legis-
lator`s to take the 1ead on the proposal, the
changes sailed"`through: Etepresentatives of
units of government that lost revenues when
'the industrial tax base wad lowered were too
late in their oWoeitton.
Another Luoey approach is to take over
some legislation, initiated outside his office,
which he feels i_s needed. Be convinces his
legislative allies of his Interest, promotes
tiq legislation - at every opportunity in ap-
Y earances throughout the state and, when
he bills require compromise between op-
posing Interests, insures that his position is
known, Democratic legislators took the lead
oli" the power plant and campaign finance
reform bills. When opposition developed,
they met with `opponents to work out com-
promise legislation. During these negoti-
ations, Lucey's aides were at the legislative
elbows, constantly transmitting his views,
pro and con, on various provisions. And
Ducey spoke publicly on the need to balance
future energy needs against possible damage
to the environment and appealing to con-
cerns raised by the then recent activities of
)le. Golli1nlttee, to Re-Elect the President.
That approach was evident also in the
Wisconsin Consumer Act-the product of in-
ensive negotiations between consumer
groups, financial institutions and legislators
for more" than a,,,year. In" the end, Lucey's
legal counsel was a key figure in developing
legislation which became a model for other
states, `".
?. The Governor', for the m_.;t part, has con-
ducted an open administration, so it was
}a 6i _f to ,support such bills as a
? nr~~ er open meeting law, the code of ethics
rind te'Jro ,17s1g of voter registration. He
...
was anion the early leaders in the call for
Lucey's ass with- legrsiation stems
largely from ms mastery of various political
OF techniques and his ua perceptive, read-
ing of the public mood. a has in effect, a
political tool box from w i fi e?dian!s the
specific device for the specific issue But even
lions more times than any Governor in state na t figure in?Wisconsin politics, Luoey will
h d t bill with nonbud -
a
l
d
s u ge
hisory. He
oa
g pably accept the challenge.
etary matters to the point where they creak ii
with the weight. He makes personal appear-
ances at legislative caucuses. He dangles ju-
dicial and administrative appointments be-
fore eager legislators. He has made a science
of the partial veto, getting what he wants by
eliminating phrases, words, or even numbers.
He once infuriated a Republican attorney
general by striking the "2" from a $25 mil-
lion appropriation. Lucey, contending he
still was right, nevertheless backed off.
His dealings with the state civil service
and administrative agencies have been equal-
ly aggressive; he insists on increased pro-
duotivity, a revision of traditional civil serv-
ice procedures. And, of course, he installs as
department heads men and women who
share his views."
All of this brings complaints that he is
ruthless, schemi.:ig, vindictive and a politi-
cal boss type in a state which has a tradi-
tion of no patronage and a repugnance to-
ward political ;machines. But his .friends
and foes agree that he is unusually cour-
ageous in pushing through lids positions,
even though it means tackling some of the
most powerful lobbyists and special-interest
groups in the state.
That quality, plus his years as a demand-
ing, controversial party chairman, has
created an impression in the general public
that he is a wheeler-dealer, grasping politi-
cian. But Lucey offsets this judgment some-
what by: his'accbinplishmentaand his sensi-
tive appraisal of what-the public wants and
needs.
He is also lucky to be the first Governor
elected to a four-year term in the history-of
the state. To his credit he savr the advan-
tages and used them, taking the time to get
things done, rattier than concentrating from
the start on re-election. He tools office when
the economy was strong and the state had
a healthy surplu> of funds, but he knew how
to economize when the slump came and
has helped the state retain its top credit rat-
ing in the bond market.
He became Governor when civil unrest had
abated on the campuses and in 'he big cities,
and he was no-> harassed by the need to
extinguish fires. He has worked from the
start with Dernoarattc Assemblies and in 1974
the Senate became Democratic for the first
time inthis ce~n?tury.. His two Republican
opponents for governor have been relatively
lackluster and Lucey won by margins of more
than 181,000 and 160,000 votes.
Approved for Release 2005/08103 : tI&- DP79-009571AO00100100045-Q,
KICKBACKS
latedly, to the ranks of those who have
been concerned with the problem of cor-
porate bribery and kickbacks and its
cousin, the problem of corporate politi-
cal involvement abroad.
President Ford's three major themes
are ones to which exception cannot be
taken. The problem is, as he says, serious,
and. legislation is imperative. American
society cannot, as he says, accept cor-
porations which keep false books and
systematically mislead their accountants.
Finally, international agreement is, as
he says, necessary to solve the problem.
Alas, the major themes find little sup-
port in the detail of the President's pro-
posals. To understand why requires a
careful look with an eye to who will en-
force the law and to whom disclosure
will be made. After looking, I believe
President Ford is not serious and is try-
ing to paper over the problem.
The remedies we create must be en-
forceable and enforced. If there is any
question about our resolve and the will-
ingness of this Government to catch and
punish the lawbreakers, the ensuing.cyn-
icism will further erode confidence in the
free enterprise system.
The one agency which has tried to
solve the problem of corporate payoff and
improper accounting is the Securities
and Exchange Commission. Of all the
agencies working on the problem, it alone
has the expertise and the skill to enforce
whatever atatidards we sQ , The Presi-
dential proposals appear on their face
to take the question of enforcement from
the SEC and place it in the hands of
the State Department which has no en-
forcement capacity or experience. Any
antipayoff law with the State Depart-
ment as watchdog will be a voluntary
proposition.
6
 Approved For Release 2005/08/03 : CIA-RDP79-00957A000100100045-0
S 9646 CONGRESSIONAL RECORD -- SENATE
Our proposal, S. 3379, calls for SEC
enforcement with a report on the find-
ings to be given to the State Department
for assessment of the foreign policy inI-
pact. We believe the corporate com-
munity will take the SEC seriously on
these matters.
The President's proposal also sutrests
that the State Department has the op-
tion of burying the information on my-
offs for foreign policy reasons if It deems
it sensitive. If it had been up to thy' De-
partment of State, none of the current
specific disclosures about corporate mia-
lingerin; would have been made. Spate's
interest is in not rocking the boat. By
its very nature, law enforcement rocks
the boat. If disclosure is to be a serious
deterrent, it must go to all the rek-vant
law enforcement agencies and to the
Congress. That distribution will insure
that eesnpanies will not risk impropriety.
A generalized negotiation in the United
Nations Is the last place to go fcr an
international bribery convention. A r:eri-
eral discussion in the U.N. will quickly
bog down in a morass of peripheral Isucs
and In the more general debate over the
distribution of wealth and resources.
The two places for serious action ore
the OECD-organization for Economic
Cooperation and Development-ar.d in
our bilateral relationswith Switzerland.
Virtually all of the multinationals which
have been Involved in payoffs are head-
quartered in OECD countrle or depend
on OECD markets. Agreement among
these countries Is possible. It can b? en-
forced. When the subcommittee staff
discussed the prospects in Paris several
months ago, the consensus was tl,, t a
strong American initiative for an a;rr,--
ment would get support, and It was real-
istic to expect more than hortatory Ian-
gua?'e
The Swiss problem is a bilateral one.
American companies "have used Switzer-
land as a convenient place to hide th ?ir
dubious transactions. The Swiss com-
bination of bank secrecy, the prohit ition
against allowing foreign government
agents to investigate their own nati-jnala
in Switzerland and the law which pro-
hibits compliance with a subtiena- f the
company does not want to comply with
it-have made the country a natural hid-
ing place. In my judgment the Swics ore
willing to discuss these Issues reasonably,
and we should immediately press ?or a
broadening of the recently signed ,lud-
ctal Assistance Treaty. If negotiation
fails, we should consider legislation
which would sharply limit the ability of
American companies to do business -risng
Switzerland as a base,
Mr. President, I was certain that the
White House, along with all )f m, would
favor honesty. I confess to being some-
what surprised by how long it took the
White House to make up Its mind, and
I am more than a little disappointed in
the lack of teeth In its proposal.
I would hope that those of my col-
leagues who were impressed with the ad-
ministration's statement of faith vloitld
look at the actions proposed to back it
up. They are mighty thin.
Mr. HUMPRItEY. Mr. President, the
Public Affairs Research Organisation,
Inc.. has prepared a study entitled
"Climate Research: An Urgent Priority"
which aptly discusses the need for ad-
ditional climate research. I have long
beers concerned about the agricultural
production capabilities of this country,
anc every year. despite our technological
advances and (lovernrilent incentive
prosrams, the weather always has the
largest impact on the size of the harvest.
Actually, we have been lucky. The
weather during the first part of this
century has been the most favorable for
aisricriltural production out of the last
1.000 years,
Toe authors of this study, Richard S.
Mo ris and David Lenefsky, discuss the
historical changes in climate and the
effec1, of pollution on climate change.
Noting the work of Dr. Reid Bryson, dl-
r ect or of the Institute for Environmen-
ttal Studies at the University of Wiscon-
idn-Madison. they comment:
'r" trend over the pest c ntury has been
to ' -este about 17 percent of the Ali t tem-
perature variance due to mart-geAerated
particulate emlasoas. With the ratio re-
contli rising to about 30 perceeit, the re-
mainder due to vc4canic ae"xvity.
Morris and Leiitefsky suggest that a
higlie'r priority In climate research
should be given ro climate modeling and
obtaining more comprehensive and ac-
c.uritte statistical data so that the pre-
diction of climate a year in advance
miqilt become possible.
The authors suggest that Increased
fun-ung for climate research through
bout the office of Climate Dynamics of
the National Science Foundation and the
National Oceanic and Atmospheric Ad-
ministration, In combination with the
foil,:tying elements of a climate program,
would provide the basis for a fruitful
attempt to better understand the all-
mate. Thee elements are:
A focus on catrallty with the special
emphasis on the extent of human im-
pact :
An interditcipiialar,v model Of climate
ciutuge which translates obtainable raw
datrt into bottom line food production
preil is boo, and actionable proposals for
a cx-orrimod:ition .31 such production lim-
itations: and
The development of predictability of
climate variation by region on a see-
son -in-advance bests, with such focus as
wood permit the alteration of plantings
in particular' parts of the globe to take
arc -ant of such Input.
Mr. Pres.kltmt:, I ask unanimous con-
lcrv. that this study be printed In the
Rsc01D.
There i >ein lit= objection, the study
was ordered to be printed in the-Racoim.
W. toiloty :
C .'.'setvi 11 iLAarit: AN lit i iv PeioarrY
(Fly Pichard a. Morris and David Lenefeky)
At mankind be;tns to lose the race be-
twecn population growth said food supply,
the changing pattern of our climate must
becvaie an Increasingly pressing concern.
Pew bluest, of news loom as seriously for a
June 16, 197t
world faced with a need to increase foot
supply by two and one-half times by ti
year 2000 to keep pace with population an
consumption rrowth, than that world ell
mate has talcenn a sharp turn for the won
The first hair of the twentieth. centui
was the best period for food production
the Ins, 1,000 years, but our luck Is fading:,
Due to a global cooling trend in progress
since 1946, we are beginning to face severe
disruptions in agriculturally favorable
weather, particularly In the monsoon regions
of the world-where cverpopulatlon is most
acute.
Six years of drought in the Sahelian or
sub-Saharan countries, the -unusual
drough s in Riuisla, Central America, Wes:
Africa, Australia, and South Asia In 197'
and pour weather conditions in much -
1974, are Indicators of this adverse trend in
climate.
To date, we have tended to look at weather
problems In terms both of day-to-day fore-
casting and of i,wg range statistical trends.
We tend to track climate rather than under-
stand it, observe It rather than grasp it. Our
approach fails to inter-relate the various dis-
ciplines concerned with climate and its im-
pact. The climate expert traces observed
weather patterns. the rood production expert
examines the requisites for food generation;
the socioeconoinlst traces the economies of
agriculture in developing nations, the geog-
rapher focuses on analysis of geographic In-
fluences of climate, the environmentalist
monitors emissions, but neither communi-
cate across academic lines-
No ongoing erort is made, except in iso-
lated cis cumatuncre, to co-relate the findings
of the climate expert on likely rainfall pat-
terns with those of the food production ex-
pert on the various needs of different crops
for rain with those of the socioeconomist on
the likely agrtrs lriiral habits of the Impacted
areas rir_r with the geographer in the likely
crop palterms in each area. Neither are the
findings of the clima*e expert related to the
researches of th