-Caveat Lector-

http://onlinejournal.com/Special_Reports/032903Leopold/032903leopold.html

The enterprising hawk

By Jason Leopold
Online Journal Assistant Editor

March 29, 2003-Richard Perle's resignation Thursday as chairman of the
Defense Policy Board, a Pentagon advisory group, is long overdue. Perle quit
the board because he was hired to help bankrupt telecommunications firm
Global Crossing win approval from the Department of Defense to sell the
company to a Hong Kong billionaire and lawmakers questioned whether Perle's
dual roles were a conflict-of-interest.

Presumably, Global Crossing hired Perle, who served as assistant secretary
of defense under former President Ronald Reagan, as a lobbyist because he
wields an enormous amount of power around the Pentagon and would likely get
the job done. Perle is a key adviser to Secretary of Defense Donald Rumsfeld
and a leading architect in the Bush administration's policies toward Iraq.

The Pentagon and the Federal Bureau of Investigation objected to Global
Crossing's sale to Asian investors last year because the government uses
Global Crossing's fiber optics networks and a sale would put the networks
under control of the Chinese government. Global Crossing said it would pay
Perle $125,000 and an additional $600,000 if the deal went through.

Perle denied Thursday that his unpaid advisory role on the policy board
would have interfered with his lobbying on behalf of Global Crossing, which
is mired in shareholder lawsuits as a result of its questionable accounting
practices. But Perle has a long history of using his influential role as a
government adviser to line his pockets.

"Richard Perle . . . has made a lucrative career out of some bald conflicts
of interest," wrote Mark Crispin Miller, a New York University media
professor, in the Free Press in 2000.  "As an Assistant Secretary of Defense
for International Security under Ronald Reagan, he got in some slight
trouble when he wrote a memorandum urging the department to consider buying
equipment from a company that had paid him a $50,000 consulting fee (as the
New York Times noted back in 1984). As chairman and CEO of Hollinger Digital
(owned by media titan Conrad Black), Perle maintains his close connections
with the military industries. For example, as a non-executive director of
Morgan Crucible, PLC (UK), which has done business with the Pentagon . . ."

Moreover, Perle was also a director of Memorex Corp., a defense contractor,
in the 1990s while he was advising then-Secretary of Defense Dick Cheney as
a member of the Defense Policy Board Advisory Committee during the first
Bush administration.  At the same time, Perle also was a paid consultant to
a Turkish-hired lobbying firm in Washington and has been both an adviser to
FMC Corp. and a director of an FMC-Turkish joint venture building military
equipment. It should be noted that during Perle's tenure in the Reagan
administration he was a fierce proponent of aid to Turkey's military.

In 1987, the Pentagon's Office of General Counsel opened an inquiry into
whether Perle's attempts to write a fictional novel based on classified
intelligence information were a conflict-of-interest. At the time, Perle was
offered a $300,000 advance for the novel, titled "Memoranda."

The proposal for the novel described an inside look at the bureaucracy and
promised a plot that seemed a thinly veiled account of Perle's long-running
internecine struggle with former Assistant Secretary of State Richard R.
Burt. It promised "an array of bureaucratic maneuvers recounted in the
context of actual events altered only enough to make them publishable, to
preserve the fiction in 'Memoranda.'"

In April of 1987, Sen. Sam Nunn (D-Ga.), the former ranking Democrat on the
Senate Armed Services Committee, wrote an angry letter to Reagan suggesting
that Perle's book "creates a climate encouraging disrespect for the
protection of classified information" and might have "a chilling effect on
the candor of [officials'] policy analysis and recommendations." Nunn also
raised questions about the propriety of the sale of the book during Perle's
tenure in office.

In response to the inquiries, Perle resigned his post as assistant secretary
of defense in April 1987 to write the book. The title was later changed to
"Hard Line."

Jason Leopold spent two years covering California's electricity crisis as
bureau chief of Dow Jones Newswires. He has written more than 2,000 news
stories on the issue and was the first journalist to report that energy
companies were engaged in manipulative practices in California's newly
deregulated electricity market. Most recently, Mr. Leopold has reported on
Enron. He was the first journalist to interview former Enron President
Jeffrey Skilling following Enron's bankruptcy filing in December 2001. Mr.
Leopold has broken numerous stories on the financial machinations Enron
engaged in and his investigative pieces on the company have been published
in The Nation, Salon, The Financial Times, The Wall Street Journal, The San
Francisco Chronicle, CBS Marketwatch, Time magazine, The New York Times,
Forbes, Entrepreneur and numerous other national publications. Mr. Leopold
is also a regular contributor to CNBC and National Public Radio and has been
the keynote speaker at more than two-dozen energy industry conferences
around the country. Mr. Leopold left Dow Jones last April to write a book
about California's electricity crisis

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