http://www.thegully.com.nyud.net:8090/essays/argentina/imgs-ar/menem_carlos.jpgFormer Argentine President Carlos Menem in the
hot seat, June 6, 2001 in Buenos Aires.
Daniel Luna
Bush Friend Arrested for Illegal Arms Trafficking
by Ana Simo
~snip~
1988, a few months before Menem was elected for his first term, George W. Bush, the then oilman son of a sitting U.S. President, had tried to pressure the administration of outgoing President Raúl Alfonsín to favor Enron, the Houston-based company, over other, more qualified bidders to build a gas pipeline in Argentina. He was unsuccessful, but the Bushes hit it off with the high-rolling, big-spending Menem from the start. One of Menem's first acts as President was to give Enron a $300-million sweetheart deal on the pipeline project.
The Enron deal triggered a public outcry in Argentina. A congressional inquiry was demanded, and a special prosecutor launched a probe. But after Menem fired him, the probe fizzled. Enron and its founder and CEO, Kenneth Lay, another close friend of the elder Bush, were among the biggest contributors to George W. Bush's presidential campaign, as well as to his two gubernatorial campaigns.
George W. Bush's brother, Neil Bush, also had his fingers in the Argentina pie. He jetted to Buenos Aires for a tennis match with Menem the day after the latter was first elected, in 1989. Earlier, Neil had been involved in a failed plan to drill oil in Argentina, to be financed in part with a $900,000 loan from the Silverado Savings and Loan Bank in Denver, of which he was a director. The S&L collapsed in 1988 amidst a financial scandal, costing U.S. taxpayers more than $1 billion.
The elder Bush soon became an assiduous guest of the flamboyant Menem. He was the first U.S. President since Eisenhower to visit Argentina. Over the years, he clocked eight visits to Menem, for what the Buenos Aires daily Página 12 described as "lavish golf parties." Money and politics were discussed, particularly the three Bush investment areas of choice, according to the newspaper Clarín: oil, gas, and casinos.
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