Sunday Gazette-Mail from Charleston, West Virginia on June 20, 1976 · Page 194
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June 20, 1976

Sunday Gazette-Mail from Charleston, West Virginia · Page 194

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Charleston, West Virginia
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Sunday, June 20, 1976
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Page 194
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an advertising campaign, while a larger amount went for an extensive round of lecture tours throughout the nation. · The Justice Department early this year initiated prosecution against the Arab Information Center and its director, Amin Hilmy II, charging that they- had violated the Foreign Agents Registration Act by failing to properly identify themselves in anti-Zionist advertising late last year in newspapers published in New York, Dallas, Los Angeles, Chicago and Boston. The Justice Department also has charged that the organization refused to allow two government attorneys to examine its records, an alleged violation of the section of the federal law which requires that foreign agents' records must be opened for official inspection upon demand. In addition to their unified effort, Arab nations have individually signed scores of experts and specialists to aid in gaining acceptance for their political views, economic development programs and commercial enterprises. A big spender One of the biggest spenders in that category is Sonatrach, Inc., Algeria's government-owned oil and gas monopoly that employs both Clifford and Kleindienst. Sonatrach's Washington office was headed until recently by Cherif Cuellal, a former Algerian ambassador and popular figure in the capital's diplomatic social circuit Sonatrach reported spending more than $1.5 million in this country last year. One of the minor items in its expense account was limousine rentals to transport the organization's officers and -guests at a cost of more than $19,800. Instead of renting work space, the firm purchased its own office building in downtown Washington with a $119,900 down payment, spent more than $27,900 in improvements and is laying out another $4100 monthly in mortgage payments. When Sonatrach wanted to announce the cancellation of a contract with an American firm last year, it hired a Washington public relations organization to distribute a news release, arrange a press conference and edit background papers. The firm received $1250 for three days' work. $750,000 in 5 years During the past five years, Clifford's law firm has received more than $750,000 in fees and expense reimbursement from Sonatrach.' Although Clifford is technically only an attorney, his reputation is built upon the influence and prestige he has acquired as a leading adviser to several Presidents. Kleindienst, who has earned more than $200,000 since he went to work for the Algerians in late 1973, has arranged and participated in meetings with his clients and dozens of Washington's leading government officials. Henry Kearns, former president of the Export-Import Bank. He returned to his own firm, which last year received $350,000 in fees from (he Algerians. Included in that list are President Ford, when he was a member of Congress; Secretary of State Henry Kissinger; Rogers C. B. Morton, Ford's campaign manager; Treasury Secretary William E. Simon; Deputy Secretary of Defense William P. Clements Jr., and scores of Senators and Representatives. Sonatrach also has been paying handsome fees to another former government officfal--Henry Kearns, the onetime president and chairman of the Export-Import Bank, a federal agency that has financed more than $70 billion worth of United States exports to more than 180 nations, including Algeria. When Kearns was in office, Sonatrach regularly sought his assistance in connection with requests for Export-Import Bank financing. In October, 1973, he left the government to return to the presidency of Kearns International, a San Francisco-based economic and investment consulting firm. Federal law prohibits former government officials from acting as agents for private interests for one year after they have left the public payroll--so Sona- trach waited exactly one year, then hired Kearns' company as its agent. Last year, Kearns International received $350,000 in fees and $46,900 in expense reimbursement from Sonatrach. Other Arab nations are not quite as lavish in their spending, but they can hardly be classified as being cheap. For instance, when Egyptian President Anwar Sadat visited the United States last autumn, Egypt's Washington embassy contracted with the public relations firm of Doremus Co. to supervise press coverage of the tour. The money deal The public relations consultants estimated that preparation and distribution of "an official information kit" as well as news releases, speeches, photographs and other publicity material would cost no less than $15,000, with an additional $5000 for "press logistic support" The embassy accepted that offer, al- j^^^pitQa*iacB^j'aiig»Hii^i'iMi11.:,-«»^.i. ··i'»Ji-*-**········ i ··'"··!'"'""'· ·····--.--» -. . Marion Javits, wife of Sen. /acob lavits, with Marvin Frankel, head of New York public relations firm for whom she worked at 567,500 a year in behalf of Iran National Airlines. She resigned her job when controversy erupted. though later reports filed with the Justice Department indicated that the Egyptians got a "bargain" rate of $15,800 during the 10-day visit. Jordan, a year-round client of Doremus Co., paid the firm $65,200 during the past year in return for publicity services and press releases announcing events such as "Agreement signed in Jordan covering $180 million fertilizer plant" and "Jordan to build 500-room deluxe hotel." Attorney Frederick Dutton works for both the Saudi Arabian government and its state-owned oil and gas monopoly, Petromin. He estimates that his $100,000 annual fee will be spent this way: $20,000 for six or seven trips a year to Saudi Arabia, $20,000 for "office overhead and expenses" and the remaining $60,000 for "personal services." Calls on legislators In a public report more candid than most, Dutton noted that he has "accompanied the ambassador" and other Saudi officials "for calls on various members of Congress," although he says he "did not make presentations other than minimal amenities." His expense account is indicative of the style of living enjoyed by the few Americans selected to represent the wealthy Arabs. During the last half of 1975, Dutton spent $1800 to entertain Saudi guests in his home, another $1800 for rental cars, $7400 to pay for air fare on four trips lo Saudi Arabia, $6100 for hotel services during those trips and , $2100 for "out-of-pocket" expenses. Perhaps most publicized for her work during the past year was Marion B. Javits, the wife of Sen. Jacob K. Javits, a New York Republican and member of .the Senate Foreign Relations Committee. She registered in early September of last year as a representative of Iran National Airlines, noting that she expected to be paid $67,500 for a year's work. Controversy Mrs. Javits worked for Iran as a "consultant" lo the New York public relations firm of Ruder Finn, Inc., whicfr' had a $500,000 contract with the airline--but a controversy soon erupted over suggestions that the substantial addition to the Javits family income might influence the Senator's position on this country's foreign policy toward the Middle East Mrs. Javits resigned in late January, and two months later Ruder Finn terminated its contract with Iran--although the firm claimed that during six months of service it had successfully performed 20 different public relations missions for the airline, Iran's royal family and political leaders. Not widely known are the generous terms of the final financial settlement: Ruder Finn received slightly more than $270,000, while Mrs. Javits got $10,000 as a "consulting fee" and an- continued

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