MCCONE HOLDINGS SUGGEST CONFLICT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01009A000701110011-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 23, 2016
• Document Release Date: April 30, 2013
• Sequence Number: 11
• Publication Date: January 22, 1962
• Content Type: OPEN SOURCE

Declassified and Approved For Release 2013/04/30: CIA-RDP80MO1009A000701110011-8
1NIcCone Holdings Suggest Conflict
By Drew Pearson
Some of the Democrats
who shouted loudly and con-
tinuously about conflicts of
interest in the Eisenhower
delighted to put their stock In
General Motors and Ford In
trust, but were not permitted
to do so. '
Effects on Israel
It happens that Standard of
California and Standard of
New Jersey control the Ara-
bian American Oil Co., which
operates perhaps the most
fabulous oil concession in the
world, with reserves estimated
to last around 100 years.
It also happens that the
Near East is a field where
Central Intelligence has
played an all-powerful role
and usually swung its weight
against Israel, the only demo-
cratic country In that area.
The CIA has probably in-
fluenced policy more than the
State Department, and it has
nearly always sided with the
oil companies.
Here are some illustrations
of how events have been in-
fluenced in the Near East:
Illustration No. 1-In 1952,
CIA maneuvered an Egyptian
revolt that kicked out King
Farouk and substituted the
Naguib-Nasser rule. This may
or may not have been a good
thing, but there Is no ques-
tion but that the coup was
organized by CIA, that It led
to the strengthening of Egyptl
in the Arab world.
Illustration No. 2 - When John Foster Dulles sent
George Allen, then Assistant
Secretary of State, with a spe-
cial message to President
Nasser, it was the Central In-
telligence director for the
Near East, Kim Roosevelt, who
told Nasser to ignore the
Dulles message.
Illustration No. 3 - During
the Suez war of 1956, it was
Central Intelligence - which
in making his decisions. These though he leans over hack-
reports may have been com- word to be Impartial in his
pletely conscientious and judgments, should not be' s
accurate. But they ought not big stockholder in companies'
to be made by a director who likely to profit from his de-
has heavy investments in the cisions.
major American oil companies Illustration No. 7-It was
affected by the Suez,war. CIA which secretly organ-
Ilustration No. 4-Just prior ized the political maneuver
to the Suez war, Nasser put which kicked Premier Mossa-
the bite on the Arabian- degh out of Iran. He had
American Oil Co., through his seized the Anglo?Iranian oil
friend King Saud of Saudi refinery. Anglo-Iranian Is a
Arabia, to collect $200 million competitor of Aramco. The
of advance oil royalties. This head of CIA, with oil stock,
was used, directly, to purchase should not be In a position
the huge arsenal of Czech where he has to undertake op-
arms which Egypt amassed on orations for or against com-
Israel's border prior to the petitors of the companies in
Suez war. It was this build-up which he has an interest.
of arms that touched off the Illustration No. 8-The oil.
war.
rich sheikdom of Kuwait
Profits vs. Strategy right now is in throes of
Illustration No. '5-During trouble with oil-rich Iraq. Brit-
the Suez war, Syria served an ain gets most of its oil from
ultimatum that it would cut Kuwait. Some of Kuwait's oil
the pipelines crossing her ter- also goes to Sun 011, Union
ritory If any American oil Oil, and Gulf-all competitors
were sold to the French and of Standard of New Jersey and
British. The United States Standard of California in
promptly curtailed all oil ship- which McCone holds heavy
menta to the French and Brit? interest.
ish. The CIA Director, who Again, a CIA director, no
must necessarily participate in matter how conscientious,
such a decision, should not be should not be a man who di=
a heavy stockholder in oil rectly or indirectly must
companies that are affected, handle operations which could
affect his own companies or
Illustration No. 6-During his competitors.
the first three months of NOTE-McCone's wholly
1957, immediately following owned Joshua Hendy shipping
the Suez crisis, Standard of line with his partner, State's
New Jersey raked in the huge Marine '(which got the prize
Income of $237,000,000-16 per atomic merchant ship Savan-
cent more than in the same pe- nah contract when McCone
riod of the previous year. In was atomic chairman), got $2
the same period, California million in charter hire con.
jumped its profits 13 per cent. tracts from Standard of Cal'-
This resulted directly from the fornia In 1960 and they have
Snrz . rri ate and a. rranifant
lion of John new
chief no new
chief of Cen- _!t
ministration -
especially the
dubious posi-
conflicts in the'
Kennedy Ad-t
This column was one which
helped expose some of the
conflicts among Eisenhower
officials, therefore feels 'obli.
gated to do the same with
Democrats.
One of McCone's most im-
portant. Investments is, In
Standard. Oil of California
and.Standard Oil of New Jer-
sey. He has been a director
of the former, and its report
to stockholders as of Aug. 1,
1961, lists him as owning
18,318 shares, on top of which
he received a stock dividend
of 915 shares, which,, at the
current value of $53.50, gives
the new CIA chief an invest-
ment of $1,028,965.50 iij Stand-
ard of California.
This makes him the second
biggest stockholder in a com-
pany whose profits and fu-
ture are materially influenced
by Central Intelligence.
McCone, when up for con-
firmation to past Govern-
ment' posts, has declined to
sell his stock in these oil com.
panics but put S them In a
trust. Secretaries of Defense
Charley Wilson and. Robert
McNamara would have been
sent In the reports that boost In the price of oil. The
guided President Eisenhower man who heads CIA, even
continued to do a profitable
business with it since.
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