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Clinton's Utah "Memorial" Scuttles Low-Sulfur Coal to Aid Indonesian Coal
Producer?



Sixty-two Billion Tons of Coal Would Have funded Utah Education
By: Mary Mostert, Editor, Michael Reagan Monthly Monitor

December 26, 1996

Past Clinton actions explain why we now are having such problems with
electric power

"When President Clinton designated 1.7 million acres of Utah wilderness as a
national monument, " Karen Gullo of Associated Press wrote today, "he dashed
plans to tap a huge reserve of environment-friendly coal." She also commented
on previously reported business interests of the Lippo group in world wide
markets, which would be the prime competitors for the Utah coal.

While Clinton claims that his only interest in blocking the mining of coal in
the Kaiparowits area was to preserve a "beautiful, exotic place," local
residents of the area who had long urged protection for some archeological
sites, dispute that statement. According to members of the Western States
Coalition, a key archeological site and other important environmental sites
the local residents wanted protected were left outside the 1.7 acre memorial,
while ordinary desert land with no significance or unique natural features
was included solely to block entrance to the environmentally friendly coal
deposits.

The September 1996 announcement of the Escalante "Memorial" came in the
middle of the presidential campaign, on the heels of large contributions
originating from the Lippo group. Shortly after becoming second in command,
after Ron Brown, at the Commerce Department in 1994, John Huang, who became
Democratic Party fund raiser in 1996, began immediately campaigning for
changes in US foreign policy in areas that would aid his former Lippo
employer. The Lippo Corporation in Indonesia is the only other source of the
very low sulfur, non-polluting coal, outside the Utah Kaiparowits basin, that
is currently available. Coal fueled power plants under construction or
planned, in China, Japan and Mexico which were potential customers for the
Andalux Corporation, which holds leases on the now unavailable Kaiparowits
coal, will have to purchase their non-polluting coal from the multi-billion
dollar Lippo group, or use polluting coal sources. The Mexico plant,
especially, will either use coal imported from Indonesia, or coal that will
add to pollution problems not only in Mexico, but in the Four Corners area of
the American Southwest, which is producing electric power to take the place
of the nuclear power plants which have been closed down for "environmental"
purposes.

Clinton's sudden announcement, made without even consultation with the state
of Utah's lone Congressional Democrat, Bill Orton, in whose district the
Kaiparowits basin is found, basically eliminates the competition for the
Lippo group, enabling it to become the sole readily available source of the
high quality coal for the entire world.

The Lippo corporation founder, billionaire Mochtar Riady, his family members
and associates gave hundreds of thousands of dollars to Clinton and the
Democrats. Earlier in December, Bill Clinton admitted that he received a
letter from Riady urging him to "normalize" trade relations with Vietnam at a
time when Riady was moving its $6.9 billion real estate and investment empire
into the country. Shortly thereafter, in 1994, over protests from veterans
and family members of American soldiers missing in action in the Vietnam War,
Clinton ended the 30-year Vietnam trade embargo.

"In the Utah connection, Andalex Resources, a U.S. mining company owned by a
British family, was nearly ready to break ground on a Kaiparowits mine that
would produce about 3 million tons of coal. It reversed course with Mr.
Clinton's announcement in September," the Associated Press report noted
today. "Our position is that the monument designation makes the coal mine
project unfeasible," said David Shaver, project manager at Andalex. The now
un-mineable coal is known as "super compliance" coal because its properties
meet Clean Air Act standards.

"The whole industry was expecting to move into Kaiparowits," Lee Allison,
director of Utah's geological survey said. Allison noted that, while cleaner
burning coal is also found in other deposits in Columbia, Wyoming and South
Africa, the Utah and Indonesia coal are the cleanest burning deposits which
are immediately marketable. Clinton's actions have created a worldwide
monopoly for the Lippo Conglomerate coal, while leaving Utah without a source
of clean burning coal to provide the state's energy needs when its present
mines are depleted, twenty-five years from now.

Although labor costs are low in Indonesia and much of the Lippo coal is
extracted by surface strip mining, the Kaiparowits coal would still be very
competitive, although is would not be strip mined. Andulux would use modern
environmentally sensitive mining methods in Utah which, combined with lower
transportation costs for customers such as the Atlanta based Southern
Company, would make the Utah coal a worthy competitor. The Southern Company
purchases Indonesia coal for its plant in Chili.

The 62 billion tons of coal in southern Utah's Kaiparowits Plateau would
provide thousands of jobs, billions of dollars in school funds under the
State's 1896 agreement with the Federal Government under the Utah statehood
enabling act, and enough coal to keep Utah power plants burning for another
400 years.

According to the Associated Press article today, "In the Vietnam connection,
a key player in the Democratic Party contributions scandal - who left Lippo
with a $780,000 bonus to join the Commerce Department - is linked to an
effort to help companies, including Lippo, expand into Vietnam. John Huang
began aggressively arguing for a new U.S. trade policy toward Vietnam only
one day after his July 1994 appointment as a top Commerce official.

Several Congressional committee chairman plan congressional investigations of
campaign financing irregularities and the apparent "sale" of American foreign
policy favors to Lippo in exchange for campaign contributions to the Clinton
presidential campaign. The new "Vietnam" favors to the Lippo groups are
especially disturbing in view of Clinton dismissing the concerns of families
and friends of American soldiers who may still be incarcerated in Vietnam or
whose bodies have not been returned by the Communist government.





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