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THE DOUBLE LIFE OF JAMES BAKER.
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- Author(s): Klein, Naomi
- Source:
Nation. 11/1/2004, Vol. 279 Issue 14, p13-20. 6p. - Source:
- Additional Information
- Subject Terms:
- Abstract: The article focuses on the conflicts of interest of former United States Secretary of State James Baker, who was sent by President George W. Bush as an envoy to Iraq in 2003. When President Bush appointed former Secretary of State James Baker III as his envoy on Iraq's debt on December 5, 2003, he called Baker's job "a noble mission." There was widespread concern about whether Baker's extensive business dealings in the Middle East would compromise that mission, which is to meet with heads of state and persuade them to forgive the debts owed to them by Iraq. Of particular concern was his relationship with merchant bank and defense contractor the Carlyle Group, where Baker is senior counselor and an equity partner with an estimated $180 million stake. Carlyle has sought to secure an extraordinary $1 billion investment from the Kuwaiti government, with Baker's influence as debt envoy being used as a crucial lever. Baker is on two sides of the transaction: He is supposed to be representing the interests of the United States, but he is also a senior counselor at Carlyle, and Carlyle wants to get paid to help Kuwait recover its debts from Iraq. One of Iraq's largest creditors is the government of Saudi Arabia. The Carlyle Group does extensive business with the Saudi royal family, as does Baker's law firm, Baker Botts.
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