LETTER TO MR. HERBERT E. HETU FROM HENRY O. DORMANN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01314R000100190041-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 42
• Document Creation Date: December 16, 2016
• Document Release Date: September 2, 2004
• Sequence Number: 41
• Publication Date: September 9, 1977
• Content Type: LETTER

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9 September 1977
Mr. Herbert E. Hetu
Assistant to the Director for
Public Affairs
Central Intelligence Agency
Washington, D.C. 20505
Dear Mr. Hetu:
drt
Lla2f've-
eotj ,
(01-1-t d C
Chief Executive Magazine, Inc.
645 Fifth Avenue, New York, New York 10022
212 758 0740
When you have had a chance to look over the magazine,
in particular its philosophy and circulation listed
on page 6, I would appreciate your ca ing me in
New York City.
Very truly' yours,
Henry O. Dormann
PresideE & Editor in Chief
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'\ LlIII1)tr
Ine
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shore rigs and s
water pure enough for pharma-
ceutical use. And with industrial ef-
fluent processing that recycles
valuable by-products while return-
ing clean water to the environment.
And we've led the way in energy conservation
with our advances in combustion efficiency. As
a result, you'll find our heat generating equipment
in use around the world.
Today, Aqua-Chem is a recognized leader in every
field we serve. We got here by solving problems...
building a company where modern technology
and innovative thinking come together.
aqua-chem,Inc
8 MILWAUKEE, WISCONSIN, U S A
A SUBSIDIARY OF THE COCA-COLA COMPANY
ANOTHER EXAMPLE OF HOW THE COCA-COLA COMPANY IS HELPING TO IMPROVE THE ENVIRONMENT
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Jimmy Carter
President of the United States of America
The President of the United States was chosen to
appear on the first cover of Chief Executive Magazine
because he holds a unique position in the world today.
He, more than any world figure, at the present time is on
the threshold of using his influence in the Middle East, in
relations with the Soviet Union, Cuba and China as well
as Europe and other nations of the world. The President
of the United States has the opportunity to place a strong
mark in foreign policy, energy, the economy and peace.
His influence in the field of human rights and his
standards of integrity in government, business, and daily
life have set him apart in a skeptical world.
How he uses that influence will, no doubt, shape
the world of tomorrow in the most significant of ways.
)
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CHIEF EXECUTIVE
Number One
July, August, September 1977
Contents
6 The Magazine and the Issue
The Editors
8 Integrity in Government and Business
Jimmy Carter
President of the United States of America
10 Face to Face
An Interview with the Shah of Iran
16 Hemingvvay's Paris
A.E. Hotchner
19 Speaking Out
John D. deButts
Chairman,
American Telephone and Telegraph Company
22 The Resurrection of Our Mexican Economy
Jose Lopez Portillo
President of the Republic of Mexico
President and kclitor-In-Chiet: Henr? 0. Dormann
Chairman and Publisher: John ('hr. Ni.A.M Deuss
Design Directors: Kipp Ste % ens. Rick Hihherd
Associate Lditor: Joan Bardagjy
Contributing Editor: Jim Aylward
Special Photography: James F. lior \ aih
Lithography: Clarendon Press
26 Where Are You, Mr. Chairman?
Walter Cronkite
28 Things No One Ever Tells You
Jim Aylward
30 Without Peace-
Anwar El Sadat
President of the Arab Republic of Egypt
34 The Carter Expedition
Reverend Theodore NI. Hesburgh, C.S.C.
President, University' of Notre Dame
36 Commentary
Walter Hosing
Chairman, Tiffany and Company
37 Does the World Hate Business?
Baron Edmond de Rothschild
Chairman, La Compagnie Financiere, Paris
ruri \T maga/ine a publi?Alcd quarterly hyChiet FAccutive
Magatine. Ine.. 50 Fast 54th Street. New. York City. 101122. Ncv.
York. telcphime 212-758-0740 John ('hr . M.A.M. Deus, Chairman
of the Board and Publishers Henry 0. Dormann. President and
Editor-In-Chief; John Hoey. Vice President: Francis V. Elias. Secre-
tary: Manuel Yglesias, Treasurer. Copyright .C,? 1077 hy Chief
Executi?e Magazine. Inc. Published simultaneously in the United
States and Canada. All rights reserved. Reproduction in whole or in
part w 'Thom permission is strictly prohibited. No subscriptions are
available. Application to inail at controlled circulation rates is pend-
ing at Clifton. N.J.
Editor in Chief. Henry 0.
Dormann at Los Pinos, the
Mexican White House, with
President and Mrs. Lopez
Portillo.
Publisher, John Chr. M.A.M.
Deuss and Editor in Chief,
Henry 0. Dormann interviewing
His Imperial Majesty, The Shah
of Iran.
6 CHIEF EXECUTIVE
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The Magazine and
the Issue
This is the first issue of Chief Executive Magazine
which is published quarterly and circulated only to
25,000 distinguished leaders of the world, in one of
these prominent positions:
Chief Executive of a Nation
Chief Executive of an International Company
Chief Executive of a World Religion
Chief Executive of an International Institute of Learning
Chief Executive of an International Labor Organization
It is the purpose of Chief Executive Magazine to
provide a forum for the world's most important and in-
fluential leaders to speak quickly to themselves and to
give new ideas and inspiration toward a better world.
The idea and the inspiration that brought about
Chief Executive Magazine came from a speech and sub-
sequent meetings with John de Butts, Chairman of the
American Telephone & Telegraph Company. We are in-
debted also to the many Chief Executives who have be-
come a part of this effort, and who have contributed their
articles exclusively to us. The editors have travelled
throughout the world to personally discuss story ideas
for this and future issues. Our appreciation is particu-
larly extended to His Imperial Majesty, the Shah of Iran,
who gave so much of his time during an audience in his
official office, filled with priceless Persian works of art
and about the size of the General Motors Building; Pres-
ident Anwar Sadat dressed in an informal turtleneck
sweater on a warm weekend in the countryside near
Cairo; President Lopez Portillo and his lovely wife who
plays piano with the talent of a concert artist, and espe-
cially President Jimmy Carter.
Also Baron Edmond de Rothschild, considered the
richest of the family who extended the hospitality of his
Paris townhouse where article topics were discussed in
his private motion picture projection room which dou-
bles as a lounge; and Walter Hoving, Chairman of Tif-
fany & Co., who has the inner strength to constructively
and publicly discuss the shortcomings of his colleagues,
and to say something without involving his corporate
experts.
There is much to be done before the citizens of the
world fully understand that the business of every nation
is government and commerce, and that both business
and government should be respected for the good that is
accomplished. It is the purpose of this magazine to help
make that clear.
John D. DeButts
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_
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Integrity in Government
and Business
Those of us who have been interested in public af-
fairs over the past two decades have seen a variety of
profound changes take place in American society. None
of these is more disturbing to me than the sometimes jus-
tifiable tendency toward distrust of people in responsible
positions. Businessmen and government should share a
common concern about this tendency, because neither
our democratic society nor our free market economy can
survive without public confidence.
Several years ago, as Governor of Georgia, I
met with a distinguished group of business leaders from
another state. One of them, who happened to be the
chairman of the board of one of this country's largest
corporations, was troubled. He said, "I sympathize with
you men who serve in public life, but I want to let you
know that business is also concerned about the fact that
we have absolutely lost our credibility with the public.
How do you think we can go about restoring it?"
What I told him then is what I still believe: the best
way for us to assure our credibility with the public is to
be credible?to tell the truth, and not to underestimate
the people we represent.
When this has not happened ? when those in gov-
ernment or business have falsely advertised themselves
or their products or their policies?the public has re-
sponded with disillusionment about the basic integrity
of the very people and institutions it wants and needs to
trust.
This is not to say that everyone in business and poli-
tics is at fault, or that there is something in the nature of
those professions that turns honest and sincere and
good-spirited people into untrustworthy schemers. It is
to say that too often, despite the best intentions in the
world, we do not carry into our professional lives the
same standards of morality and ethics that we achieve, or
at least strive to achieve, in our personal lives. Once we
begin to think that the standards we must answer to in
business or public service are less real or less strict than
the ones we must abide by as individuals, we have
started to break faith with the people who are counting
on us.
Business people should be the first to insist on
higher ethical standards in government. Dishonest
politicians create dishonest business leaders, and vice
versa. Anyone who has served in public life knows how
easy it is to be seduced by the opportunities for social
elevation or financial enrichment that come to a politican
every day. I am not simply talking about the obvious
things like trading favors ? I am talking about the more
subtle temptations, like getting permission to use his
Jimmy Carter
President of the
United States of America
name (and perhaps his participation in a financially ad-
vantageous way) to add stature to a business venture. It
might be a perfectly legitimate business. But anyone in
politics who wants to keep faith with the people who put
him in office will have no hesitation about saying no.
As Chief Executive, the President of the United
States has an important role in setting the standards and
the tone of our national political life. It is a responsibility
I welcome, and one to which I have given a great deal of
personal thought. During my first few months in office, I
proposed a new set of standards of conduct for the execu-
tive branch. Among these are that all gifts of value to
public officials should be reported; that all business and
financial involvements of our major officials should be
forthrightly disclosed; and that no one serving as a major
official of any agency should be permitted to have con-
tact with that agency until at least one year after leaving
public office.
These things are important. But when people say
they are concerned about the lack of integrity in gov-
ernment, I suspect they are talking about more than
this. The root of the problem is not so much that people
have lost confidence in government, as that government
has demonstrated time and again its lack of confidence
in them.
We have lived?and to a great extent are still
living ? in a time when political leaders are too often iso-
lated from the people they serve: they make decisions in
an ivory tower, and they have no real, direct, personal
involvement with the programs they supervise.
The test of a government is not how popular it is
with the powerful and the privileged few, but how hon-
estly and fairly it deals with the many who must depend
on it. The elected official is often the only effective
representative and voice for the unorganized, average
citizen.
By once again showing confidence in the average
citizen, we can do much to restore faith in the integrity of
government. That is why, as President, I have tried to
break down the barriers that separate elected officials
from the people. And it is why I have done everything I
could to encourage free debate, participation, and in-
volvement in the political process. It may be easier and
more convenient to do things in a tight, closed circle, but
to do that takes away the feeling of belonging that is es-
sential to effective government in a democracy.
I have no illusions that we as individuals or the in-
stitutions we serve will ever be perfect. But the impossi-
bility of asking perfection can never be an excuse for
failure to always seek to do better.
CHIEF: EXECUTIVF
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Face to Face
\ II I111(11?\ jel%\ the Shall or I rail
Iii dli CX( 1't intervievt with John (hr,
M.A.M. 1)euss, Publisher of. Chief
L.yecutive inc.Magaz His Imperial
Majesty, the Shah (Oran, calL\IOr a or
policy by the oil-producing na-
tions of the world.
Chief Executive What majoi solution
would you propose toward sok. Ith2-, the
energy problems of the \A old?
Shah It is important to deAclop new
sources of energy and I would suggest
that the oil-producing countries who do
not know. what to do w ith the revenue
should be willing to inA est it in the dis-
covery of new sources of energA. Why
not? It is an assurance of their future; it
would brimg money back to them and
they are not going to waste and spend all
that money just on luxur, hotels or what-
ever. This will help to solve the energy
crisis in the whole world. It is not just for
the United States, it vill be for the entire
humanity. This is one way of approach-
ing the crisis. The other would be for the
consumer nations to stop ?k ',sting the
precious stuff.
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Face to Face
An Interview with the Shah of Iran
Shah Oil should not be used the way it is; other
sources should be found such as coal, shale and fusion.
Shale deposits in the United States contain millions of
barrels of oil and there are also good prospects for fu-
sion, hydrogen extracted from water, plasma and many
other things. I see that the United States is finally starting
to say what I dared to say a few years ago and for which I
was treated like a heretic. I was even called a nut, but
who is the nut now? You see that oil as a source of energy
will be finished in 25 years time.
Chief Executive Do you believe that the producing
countries should take part in oil conservation programs?
Shah Yes, and especially those who do not need the
money which comes from the oil.
Chief Executive Right now the United States has
come up with an energy program that is not going to be a
solution to their energy problem. It really cannot pro-
duce a program that will solve the energy shortage be-
cause this would be politically unacceptable. The oil
crisis, which in fact exists, still does not fully exist in the
minds of the American people. However the producing
countries are in a much better position to implement an
effective oil conservation program, as they are not hand-
icapped by political implications. Do you think that it is
your duty to force consumer countries to control their
consumption, or is it your position that they have to
solve this problem themselves?
No Industrial Leadership
Shah Well, it's a combination of the two. We not only
spend up to the last cent of our oil revenue, we even bor-
row because we have to satisfy 34 million people and we
are engaged in the sophisticated development of our
country. There are 135,000 people in our universities,
and, as you know, university studies are free in this coun-
try. But other oil-producing countries do not know what
to do with their money and they could certainly cut down
on production. However, if we do this, then there would
be a great outcry from the West, that this is another kind
of embargo, a hidden embargo. They will say that this is
going to ruin their economies, that it will create millions
and millions of unemployed people and who is going to
pay for them. Whatever we do, you are going to com-
ment on anyway, because you do not have the leader-
ship; by you, lam not referring to the United States; I am
referring to the industrialized world. You do not have
leaders who will turn to the people and say, regardless of
whether they are going to be voted for in the next elec-
tion: "This is for your good, you must do it."
Chief Executive You are saying that for political rea-
sons foreign leaders are not willing to handle the energy
issue.
Shah Yes, but this is your problem. You have chosen
this way of life and believe that you are wonderful, sin-
less and fantastic, and you gibe at others whilst you can-
not even take these important decisions for your future.
Chief Executive Given the fact that the Western world
CHIEF EXECUTIVE is not able to take certain important decisions, do you
feel obliged to take some of these decisions for them?
Shah Then you will call us the destructor of the pres-
ent world civilization because we are denying you what
you need. In my case, I need the money but others could
reduce production and control oil exports. However, if
this were to happen someone would say: "Let's get rid of
these people. Let's go and occupy that land." This has
been printed in your papers; it is not my imagination.
Chief Executive Do you consider occupation by
another country to be a serious threat?
Shah No. Not really, but they are talking about it.
Have you read that crazy book by Erdmann? ("The
Crash of '79")
Chief Executive Yes I have read it.
Shah He writes anything he likes, regardless.
Chief Executive But there are some elements in that
book which have a ring of truth.
Shah Well, obviously there is always a small element
of truth in the biggest lie.
Chief Exective Well, isn't it dangerous when all the
money in the world shifts to a relatively small group of
people and the industrial world depends on Middle East
oil, with the potential of chaos if it were cut off and the
use of atomic energy for other than peaceful purposes?
Shah Yes, well, that is possible. However, the oil pro-
ducing countries cannot put their oil revenues in their
own banks. They will have to place it in the United
States or somewhere else. One fine day we are going to
wake up and find out that all these assets have been
nationalized.
World Oil Clearing Bank
Chief Executive Could this be avoided by a formation
of a world oil clearing bank which gives the producing
countries credits for the purchase of goods and services
in the consumer countries. This at least would avoid
concentration of oil revenue in one single currency only.
Would you be willing to consider the implementation of
such a scheme?
Shah If it is proven practical, why not? I have even
proposed to many people the barter of my oil for goods.
At the beginning some people were a little hesitant. Now
I see that there are more and more nations in agreement
with this idea, especially the Europeans?even the
Americans. This could be a salutory new development
for some economies which have to export like Britain,
France and Italy. It will alleviate all the burdens and ex-
change in the foreign exchange currency situation. Now
we sign contracts for barter deals daily. If I am ready to
do this, it means that I am not just depositing the oil rev-
enues into the banks, I am using the money for the coun-
try, for its needs. But you asked me the question if we
should take measures not to produce more than a certain
amount of oil to force the consuming countries to find
other sources of energy. It would depend on what period
of time we would have to reduce our output of oil and
what would be the extent of the reduction. It is projected
that by 1990 the oil needs of the United States will be
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almost 80% more than what it is today. Just imagine. It
will be impossible to meet such a demand with the
known resources of the oil in the world unless the United
States starts with the extraction of oil from shale.
Chief Executive Aren't there horrendous problems
associated with the production of oil from shale ?cost,
for one?
Oil Underpriced
Shah That is why we say the price of oil is under-
priced and the only real alternative is to find new sources
of energy because if we cut back, this may freeze the
whole world economy. I once stated that the statesmen in
the Western countries should dare to go to the people and
say: "Look, our standard of living is far too high; it
would be in the interest of society and of our future to
bring it down. It is permissive, unwise and unfounded
and so far based largely on the exploitation of other
people's reserves." Not so much the Americans because
they have all the wealth themselves, But the develop-
ment of the Europeans was based uniquely on the exploi-
tation of other people. This cannot be continued in the
future because of the emergence of the third world, etc.,
whilst other influences are creeping in such as Africa.
Can the Western countries produce politicians who are
able to go to the people and to the polls by saying that we
have to bring down, to lower the standard of living we
are used to, as it is based on an unfair position?! wonder.
The standard of living would undoubtedly come down if
we freeze our oil production. However if in the mean-
time an understanding could be reached that the United
States would develop new sources of energy, perhaps the
oil producing countries who do not know what to do with
the revenue would be willing to invest it in the discovery
of these new sources of energy. Why not, it is an assur-
ance of their future, it would bring money back to them
and they are not going to waste and spend all that money
just on luxury hotels or whatever. This will help to solve
the energy crisis in the whole world. It is not just for the
United States, it will be for the entire humanity. This is
one way of approaching the crisis, the other would be for
the consumer nations to stop wasting the precious stuff.
Chief Executive That may take a crisis itself.
Shah A crisis, Oh! Oh! just people realizing that
energy is no longer in plentiful supply.
Oil Company Profits
Chief Executive The public is of the opinion that the
shortage of oil and the increase of the cost of energy has
been brought about by the major oil companies who
want to make more money. This misconception at the
consumer level will have to be corrected first before
people will realize that a real energy crisis exists.
Shah Well, to some extent that is true. On the other
hand, the Saudis are charging 5% more for their oil
whilst we are charging 10% more, but gasoline at the
consumer level is not sold at two different prices ? there
is only one price. The difference goes into the pockets of
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the oil companies, obviously.
Chief Executive The oil companies average out the
cost of the more expensive oil with the cost of the less
expensive oil and the average increase of about 8% is
passed on to the consumer.
Shah But the money goes into the pockets of the oil
companies anyway. They have inventories and means to
manipulate prices by deliveries of heavy crudes to nearer
destinations whilst lighter crudes find their way to
further countries.
Two Tier OPEC System
Chief Executive If, on an average basis, the oil price
increase is only 8%, wouldn't it be logical to go back to a
uniform OPEC price base, rather than continuing the
present two-tier pricing system?
Shah But why should we care? We are selling our
crude in spite of the 10% price increase more than ever
before.
Chief Executive Don't you think that it is somewhat
of a surprise to the oil industry, especially that the higher
priced oil is selling as well as it is right now?
Shah Does that surprise you?
Chief Executive Yes.
Shah Well, the demand is increasing, the United
States and Europe had a bad winter, and again next year
there will be an additional demand as the consumption is
expected to go up.
Chief Executive Are you going ahead with your 5%
price increase on July 1st?
Shah That depends. We were ready to level it out at
10% throughout the year.
Chief Executive Will Saudi Arabia go along with
that?
Shah We shall see. Maybe the Saudis will propose an
even higher price increase in July.
Chief Executive The 5% price increase of Saudi
Arabia was clearly for political reasons. Do you think
that they may give up their price stand in absence of a
solution of the Middle East problem?
Shah They just do what they are told.
Chief Executive What is the possibility that in July the
price will go up by a further 5%?
Shah Well, I cannot speak for all OPEC members, but
so far we have always been the voice of reason in the
middle. Who knows, perhaps our reasoning will prevail
in achieving a unified price. Otherwise we do not care,
really.
Chief Executive Do you think that a two-tier pricing
system could last for a long time?
Shah It seems so. If the Saudis want to lose money,
yes.
Chief Executive Do you think that the two-tier pricing
system has weakened OPEC's reputation?
Shah Not really. We have to admit that it is one coun-
try against the rest. The United Arab Emirates do not
count.
Chief Executive When we met with the National Ira- CHIEF EXECUTIVE
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Face to Face
An Interview with the Shah of Iran
nian Oil Company last month, they told us that you were
very personally involved with the running of the com-
pany.
Shah Oh yes, I take the decisions.
Downstream Marketing
Chief Executive Do you feel that you should get in-
volved as a producing country in the downstream mar-
keting of oil?
Shah That has been our opinion for a longtime. I think
that it creates a growing bilateral interest between pro-
ducer and consumer countries. If I would have
downstream operations in Belgium or France, I would
be interested in the Belgians or French purchasing the
products produced by my downstream facilities. In order
to be able to do so they must have a sound economy. So
I cannot be only interested in selling my oil at a certain
price whilst the rest of the economy of that country
is in shambles.
Chief Executive When considering downstream
operations, what degree of involvement do you consider
appropriate for your country?
Shah Downstream operations to us do not represent
only retail activities. The downstream aspect we are
particularly interested in is the petrochemical industry,
this is what I call downstream. Shipping and transpor-
tation are very easy. We have a tanker fleet now and
the agreements we sign with the oil companies for the
sale of our oil include that first choice will be given to
our own tankers.
Oil Transhipment Terminals
Chief Executive Would you be interested in par-
ticipating in VLCC crude oil transshipment terminals
conveniently located vis a vis consuming areas, such as
Europe, Japan and the United States?
Shah That is a matter for study and consideration. We
have already started to examine the feasibility of such a
project some time ago. Much will depend on regulations
and if the United States for instance will permit imports
from transshipment terminals into the United States.
There are doubts about the long-term viability of such
projects. Offshore oil production near consuming areas
and oil from shale can drastically change the current
flow of all oil movements around the globe, especially
because there are such fantastic reserves of shale oil
within the United States. However, extraction will not be
cheap and certainly more ex-pensive than the extraction
of coal on a cost per B.T.U. basis.
Coal
Chief Executive lithe cost of oil is compared with the
value of coal on a B.T.U. basis, 12000 B.T.U., 1% sul-
phur steam coal in the United States should sell as high
as $60 per ton. The present market price, however, aver-
ages only $23 per ton. There appears to be a lot of up-
ward potential for the price of coal if it were not for the
CHIEF EXECUTIVE environmental problems associated with the coal pro-
duction, the transportation problems and the low B.T.U.
value of the Western United States coal. The Utilities in
the United States may require stronger pressure from the
Government to convert from oil to coal.
Shah What about gassification of coal?
Chief Executive The United States consumer is used
to natural gas, which has a much higher B.T.U. value
than the gas from coal is able to provide. We think that if
you look at the energy program intoduced by President
Carter, it is pretty clear that the reliance on oil is going to
continue for quite some time.
Shah Yes, we know that, but anyway there will be an
end to the oil reserves. You just cannot count on it that it
will be available forever that would be irresponsible.
Gassification and liquefication of coal should be consid-
ered and the environmentalists should realize that you
cannot have a perfect solution.
Chief Executive The only commercial liquefication
plant of oil from coal is operating in South Africa. The
capital costs associated with plant and equipment appear
to be staggering and run into billions of dollars. Like the
production costs of oil from shale, the production costs
of oil from coal compare unfavorably with the present oil
prices.
Shah The advantage of utilizing domestic resources is
that you cannot be threatened by being cut off from
supplies ?I refer to the United States, and there will not
be any significant transportation costs. The Exxon
studies mention a cost of $20 to $25 per barrel for
liquefication of coal.
Chief Executive What impact will this have on the
cost of energy?
Fusion
Shah That will depend on how many other alternative
energy sources can be developed at the same time. Fu-
sion, for instance.
Chief Executive Don't you think that that is a bit
down the road?maybe as much as 10 to 20 years?
Shah I think 10 years, starting 10 years from now.
Also, do not forget the contribution from atomic energy.
We are going atomic all the way. We do not have the en-
vironmental problems, and we are building our plants in
fortunately or unfortunately deserted areas. There are
certainly many options available to solve the world's
energy problems. I wonder, however, if the consumer
countries will have the courage of taking the right deci-
sions. I wonder.
Chief Executive Maybe the energy crisis will have to
escalate further until the public will understand that there
is a crisis and then the politicians will be able to take de-
cisions which are necessary to end the crisis.
Shah In the meantime they will call us savages, they
will call us greedy people and all kinds of names. For
4 years now I have been attacked, unjustly I think, in
the United States by their press for just that. It all seems
to originate from oil and the Jewish lobby in the Uni-
ted States.
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pprove or e ease oo o? ? 1;8-O 314000100190041-0
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Approve For Release 2004/09/28 : CIA- DP88-01314R000100190041-0
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pprove
A. E. Hotchner
In a manner of speaking, for Ernest Hemingway
Paris was the Ritz Hotel, and vice-versa. In the early
days, of course, when he was poor and struggling, Er-
nest lived in furnished rooms on the Left Bank, but even
then his good friends, Scott Fitzgerald and others, were
staying at the Ritz and Ernest came often to the Ritz to
visit them.
With the success of THE SUN ALSO RISES and A
FAREWELL TO ARMS, both written in Paris, Ernest was
able to make the Ritz his home and from then on he never
lived anywhere else when he came to Paris.
Toward the end of World War H, when Ernest was
in command of a band of stragglers whom he called his
"Irregular Troops," it was Ernest at the head of this little
group who was credited with being the first Allied unit to
enter Paris.
Ernest and his boys had already liberated the Ritz
Hotel and were properly celebrating the event with mag-
nums of champagne at the bar when General Jean Le-
clerc came marching into Paris with what he thought was
the first expeditionary force.
Robert Capa, the famed combat photographer, had
once told me about Ernest's Irregulars and the way they
"took" the Ritz Hotel. Capa had travelled with them for
a while and found that the men had a hard time believing
that Ernest was not a general, because he had a public
relations officer, a lieutenant as an aide, a cook, a driver,
a photographer and a special liquor ration. Capa said that
the unit was equipped with every imaginable American
and German weapon, and that he had the impression
they were carrying more munitions and alcohol than a
division. Capa was with them for only a short time.
Much later when he came zipping into Paris in a jeep,
sure that he was miles ahead of anyone else, he pulled up
at the Ritz and found he was face to face with Archie Pel-
key, Ernest's driver, who was standing guard at the Ritz
entrance, a carbine slung over his shoulder. "Hello,
Capa," Pelkey said. "Papa took good hotel. Plenty good
stuff in cellar. Go on up."
When Ernest and I were in Paris, we went to the Au-
teuil steeplechases when they were in session, always
convening before the race in the Little Bar of the Ritz at
noon. While Bertin, the maestro of that boite made us his
or e ease
A.E. Hotchener has written seven books two of which were bestsel-
lers, is the author of a Broadway play and is well known as an out-
standing biographer and closest friend of the late Ernest Hemingway.
His book Papa Hemingway gained him world acclaim.
non-pareil Bloody Marys, we would study the form
sheets and make our selections. Ernest used to say that
the racing form was the true art of fiction. Bertin was an
indefatigable student of the track, more occult than sci-
entific, and on one occasion he handed Ernest a list of
eight horses which he had brained out as winners of the
eight races on the card that day. Ernest studied the list
and said, "Okay, tell you what I'll do, Bertin? I'll bet
ten thousand francs on each and we'll split the win-
nings." All of Bertin's horses ran out of the money, but
when we returned that day Ernest gave Bertin five
thousand francs. "One of your horses got scratched," he
told him, "and we saved the loss."
I do not expect ever to duplicate the pleasure of
those Paris steeplechase days. The Degas horses and
jockeys against a Renoir landscape; Ernest's silver flask
containing splendidly aged Calvados; the boisterous ex-
citement of booting home a winner, the glasses zeroed on
the moving point, the insistent admonitions to the
jockey; the quiet intimacy of Ernest's nostalgia.
On days when there was no racing at Auteuil we
went on excursions around the city. One cold December
afternoon, with the sky a low canopy of gray muslin and
the insolent wind slapping the last of the leaves off the
trees, we made our way up the Montmartre hill to the
Place due Tertre. No tourists, no post cards, not an easel
anywhere. At one corner of the square, where the Rue
Norvins starts, was Au Clairon des Chausseurs, the old
restaurant where Ernest had sometimes eaten, when he
had money to eat, during his early Paris days.
019104 -0
After a fine lunch, we made our way down the nar-
row streets leading away from the restaurant, trying to
side-slip the cutting wind; we passed a bookstore and
Ernest stopped to inspect the contents of the window
which prominently featured copies of a recently pub-
lished book by a young writer. On the window was a sign
that read: "All Signs Point to a Brilliant Future for this
Author."
"You ever read this bird?" Ernest asked.
"No," I replied.
"Well, I have," he said. He took a pencil from his
pocket and wrote across the bottom of the sign: "All
signs wrong."
Ernest wanted me to see the neighborhood where CHIEF EXECUTIVE
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The most magnificent royal suite
in Europe?Suite "A and B" at
the Ritz Hotel, Paris.
In his earlier days
Hemingway stayed in a double
room and while his wife slept
late, he would go into the
bathroom, one of the Ritz' large
ones and write on the toilet
paper. It was in a Ritz bathroom
that his celebrated "Poem to
Mary- was written while she
was asleep in the other room.
18 CHIEF EXECUTIVE
he had first lived; we started on Rue Notre-Dame-des-
Champs, where he had lived over a sawmill, and slowly
worked our way past familiar restaurants, bars and
stores, to the Jardin du Luxembourg and its museum,
where, Ernest said, he fell in love with certain paintings
that taught him how to write.
On another day that the nags were resting at Au-
teuil, Ernest and I walked across the Pont Royale to have
lunch at the Closerie des Lilas, which was another of Er-
nest's fondly remembered haunts. On the way, Ernest
stopped to study a row of buildings. "In the basement of
one of these buildings," he said, "was the best night club
that ever was? Le Jockey. Best orchestra, best drinks, a
wonderful clientele, and the world's most beautiful wo-
men. Was in there one night when the place was set on
fire by the most sensational woman anybody ever saw.
Or ever will. Tall, coffee skin, ebony eyes, legs of
paradise, a smile to end all smiles. Very hot night but she
was wearing a coat of black fur, her breasts handling the
fur like it was silk. I introduced myself and asked her
name. 'Josephine Baker' she said. We danced nonstop
for the rest of the night. She never took off her fur coat.
Wasn't until the joint closed she told me she had nothing
on underneath."
Ernest gave his full and serious attention to the an-
tiques on the Rue Bonaparte for the rest of the way to the
Closerie, where we settled ourselves comfortably in the
dim, quiet bar. One of the barmen remembered Ernest
but everyone else was new. "James Joyce came here
with me a few times," Ernest said. "Joyce really enjoyed
drinking, and those nights when I'd bring him home
after a protracted drinking bout, his wife, Nora, would
open the door and say, 'Well, here comes James Joyce,
the author, drunk again with Ernest Hemingway: "
Ernest sat quietly, sipping his Pernod and thinking
about Joyce, and then he said, "He was mortally afraid
of lightning."
Ernest ordered another drink. "I lived in a flat near
here," he said, "and was very happy there and had no
trouble until Scott Fitzgerald came to visit me. Scott was
staying at the Ritz, as usual, but he'd sometimes come
over to visit me. We had some drinks and Scott became
animated and began stripping off the wallpaper, which
was old and starting to peel. I begged him not to because,
as always, I was behind in my rent, but Scott wouldn't
listen. The landlord made me pay for repapering the en-
tire room. But Scott was my friend and you put up with a
lot in the name of friendship."
"But how can you say Fitzgerald was your friend
when he behaved like that?"
"Well, I was speaking of our overall relation and in
that respect he certainly was a loyal and devoted friend.
He helped me get my start as a writer? in fact was in-
strumental in getting my first story published. But he did
do some outrageous things. Like the day he decided he
would go by taxi to Le Havre. There was a taxi driver
who always parked outside the Cambon entrance of the
Ritz. Scott summoned him for the Le Havre journey,
then when they arrived there Scott was seized with a bril-
liant idea. He had just purchased a new Hotchkiss which
was being loaded on the boat; what better than to have a
true Frenchman drive it in America. The taxi driver
pointed out that he spoke no English and had no clothes
or passport with him, but, as usual, Scott's enthusiasm
and persuasiveness prevailed and the poor driver aban-
doned his taxi at the dock; some kind of temporary pap-
ers were issued, enabling the driver to debark. From then
on, it used to be difficult getting a taxi on the Cambon
side of the Ritz."
I suppose what Ernest primarily liked about the Ritz
was the protection it afforded his privacy. Also, the inti-
macy of its service. The employees of the Ritz are truly
there to SERVE the clients, always present but never in-
truding. Ernest considered several of the Ritz staff to be
his friends, and he trusted them? with Ernest trust was a
precious commodity.
Then, too, Charles Ritz was one of Ernest's oldest
and closest friends. They loved to talk fishing and hunt-
ing and honestly admired each other. I was present on
the day that Charley Ritz discovered that Ernest had left
a trunk in the hotel basement that had gone unnoticed for
twenty years. We opened the trunk and in it was a treas-
ure trove of manuscripts, in fact some of the material
which later was to constitute a major part of one of Er-
nest's most successful books, A MOVEABLE FEAST This
book, published after Ernest's death, was a series of re-
miniscenses of Ernest's Paris days. In my opinion, it is
the best book about Paris ever written.
It was I who gave the book this title, which I took
from a statement Ernest once made to me. I had been
wondering whether I should give up my job in New York
and go to Paris to live and try to become a writer. I asked
his advice, "Well, it's tough advice to give;' he said.
"Nobody knows what's in him until he tries to pull it out.
If there's nothing or very little, the shock can kill a man.
Yet, there's this to consider as a guide, since it's a thing!
truly know: If you are lucky enough to have lived in Paris
as a young man, then wherever you go for the rest of
your life it stays with you, for Paris is a moveable feast."
I took his advice. I went to live in Paris. I did be-
come a writer and, like Ernest, I now stay at the Ritz.
There's no doubt about it? Paris is a moveable feast.
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John I). (le Butts
Cha rma it. A,iiericaii 'Telephone
and liqegraph Contpalt
Business leaders have watched with dismay as poll
after poll has confirmed a steady decline in the public's
confidence in the earnestness with which business pur-
sues its professed aim of service to the public and a de-
cline as well in the authority with which business speaks
in the nation's councils.
It is insufficient, I think, simply to bewail these
trends. Rather must we decide what to do about them?
and do it.
First and foremost, we must address ourselves un-
stintingly to minding our businesses well.
Secondly, we must make it unmistakably clear that
in the conduct of its affairs, business will content itself
with nothing less than the most scrupulous standards of
truthfulness and fair dealing.
And thirdly, we must speak out for what we
believe.
Five years ago, when I became chairman of AT&T,
I vowed that the Bell System would not lack for a visible
spokesman. Ours would not be a faceless enterprise.
I would be less than candid were Ito assert that liv-
ing up to that vow has been a uniformly comfortable ex-
perience. For one thing, it has been time-consuming. In
the past year alone, I have given more than three dozen
speeches. I have testified twice before Congress. I have
spent about 100 hours in news media interviews. How-
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Speaking Out
John D. deButts
"WHAT RIGHT, SOME ASK, DOES BUSINESS HAVE
TO MEDDLE IN THE NATION'S PROBLEMS'?"
ever, I do not begrudge the time I've spent in these activi-
ties. I accept them as an integral?and high priority?
part of my job.
Personal spokesmanship is not only time-consum-
ing, it is risky. In the public arena, a chief executive of-
ficer's views do not carry the same authority they do in
the executive suite. Reporters delight in asking untimely
questions?that's their job ?and in Congressional hear-
ings one's convictions must face the test of rigorous in-
terrogation. But to change the convictions of others, we
in business must be ready to run the risk that not all of our
convictions will prevail. I know that over the past five
years not all of mine have. I trust, however, that on those
issues on which I have spoken out the answers that even-
tually emerge from public debate, even though I might
not fully concur in them, will be sounder answers for my
having done so than if I had not.
My friend Irving S. Shapiro, chairman of EA.
duPont de Nemours, puts the challenge to businessmen
this way: "There's a job to be done and you can't do it
sitting in your office."
Mr. Shapiro is chairman of a unique organization of
some 170 chief executive officers called The Business
Roundtable. The Roundtable was created five years ago
when a number of chief executive officers of leading
American corporations decided that action had to be
taken to combat the decline of confidence in business.
We knew that something had to be done to bring business
points of view to public policy discussions on the na-
tion's problems. In order to give business a more au-
thoritative voice, we concluded that we chief executive
officers?rather than delegating the task of representa-
tion to our public affairs officers?had to take an in-
creased personal role in spokesmanship and problem-
solving and that our contributions to public policy ques-
tions had to be constructive and factual.
What right, some ask, does. business have to med-
dle in the nation's problems? The same right ?and the
same obligation?that belong to any body of the nation's
citizens?the right to speak out when our interests are af-
fected, the obligation to help when we have the skills and
resources to do so.
The kinds of issues The Roundtable addresses are
the ones you read about in the newspapers every day ?
matters such as energy, inflation, unemployment, taxa-
tion, the environment and consumer protection. We try
as best we can to anticipate developing issues, not so
much those far out in the future, but those near-term,
CHIEF EXECUTIVE perhaps no more than two years or so away. When an
issue we think we can help solve comes to our attention,
or at least where we have a point of view that should be
considered, we assign a task force to study the problem.
Each task force is under the leadership of one of the chief
executives on The Roundtable.
Using the resources of their own companies, task
force leaders develop position papers on the issues,
which are then circulated and discussed among Round-
table members in an effort to , as far as is possible, come
up with a Roundtable point of view. Although we strive
for unanimity, that is not always possible, considering
the divergent interests of Roundtable members. How-
ever, it has been heartening to see the extent to which
even those of us with sometimes-conflicting views can
reach a consensus of major public issues. A case in point
is The Roundtable's position paper on energy. Roundta-
ble members, consisting of major energy producers as
well as large energy users, reached an agreement
broadly outlining policies they felt to be in the best over-
all public interest.
Developing a Roundtable policy is, of course, just
the first step. We then disseminate the policy to all
Roundtable members. Frequently, we try to make the
public aware of our position through the news media and
our own personal spokesmanship. Most important of all,
we try to make sure our position is known where it
counts in Washington.
The Roundtable has a two-man staff in Washington
to present our views and to provide background to law-
makers if need be. Mostly, however, the job of repre-
sentation is undertaken by the members of The Round-
table themselves. Many of us on The Roundtable have
testified before Congress, either on behalf of our own
companies or The Roundtable, on such crucial issues as
national health policies, taxation, unemployment and
environmental problems.
In working with Congress, The Roundtable strives
to be constructive, not obstructive. Reasonable men,
when considering such areas as the ones I have men-
tioned, agree that solutions must be found. Where rea-
sonable men may differ is on the appropriate solutions to
such problems. What The Roundtable aims for are
workable legislative solutions, ones in which all the
ramifications have been carefully considered. Often-
times, when Congress' attention is called to the prospect
of unanticipated and unintended problems that might
arise from otherwise socially desirable legislation, they
are willing to correct those problems, while still attain-
ing the same goal. The Roundtable realizes that the time
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Approved For Release 2004/09/28 : CIA-RDP88-01314R000100190041-0
"IF WE REMAIN HIDDEN AWAY IN OUR OFFICES,
THERE IS NOT THE LEAST HOPE WE WILL EVER
BANISH THE SUSPICIONS THE PUBLIC HARBORS
ABOUT BUSINESS."
to present such facts, in a constructive manner, is while
legislation is being formulated. Once it has passed, it is
too late.
One of The Roundtable's accomplishments of
which I am particularly proud is our effort to help create
reasonable, workable federal foreign anti-boycott legis-
lation. In this highly emotional issue, The Roundtable
acted as a focal point for the views of business, the gov-
ernment and three Jewish groups, the American Jewish
Committee, The American Jewish Congress and the
Anti-Defamation League of the B'nai B'rith. After ex-
tensive discussion, The Roundtable reached agreement
on five amendments to the anti-boycott legislation. Pres-
ident Carter subsequently said he "can strongly recom-
mend Congressional approval for that language."
As this is written, a Senate-House conference
committee has reached agreement on an anti-boycott
bill. While it may not meet the perfect satisfaction of any
one of the parties to the development of this legislation, I
feel it will be a better law because of The Roundtable's
involvement in that development.
As with any compromise, the proposed amend-
ments did not fully satisfy the interests of all parties. But
thanks to the cooperation and reasonableness of all
sides, pragmatic alternatives were reached, alternatives
representing not only the interests of business and the
Jewish groups, but our national interest as well.
Roundtable Chairman Irving Shapiro said all par-
ties to the agreement felt it was important to develop "a
national consensus" on the issue. "The subject is a
highly controversial and emotional one," he said, "and it
was clear that neither the beneficial aspects of this vital
legislation nor the national interest would be well served
by extended confrontation and divisive Congressional
debate."
I believe that the responsibility ?and statesman-
ship? demonstrated in this instance is indicative of the
kind of committed chief executive officers we have on
The Roundtable, people who are personally involved in
speaking out for business and in solving crucial prob-
lems. It has been an encouraging beginning.
It is encouraging because we in business do have a
good story to tell, one of which I am personally very
proud. Despite the present disrepute of business, I think
we all know that most men and women in business are
earnestly committed to doing the very best job for the
public they know how to do.
We have a good story to tell because of what busi-
ness does for our country, rationally organizing its re-
sources and energies in ways that, while it may falter
sometimes, make our economy the strongest on earth.
And what we have to tell includes the message that
now, more than ever, our society needs the disciplines
that business teaches ?the need to match our aspirations
to the resources available to fulfill them, the need always
to seek the elusive balance among competing interests
that, while it might meet the perfect satisfaction of no-
body, will best serve everybody.
I firmly believe that today the chief executive of-
ficer who doesn't recognize his responsibilities for
spokesmanship on behalf of his enterprise ?and busi-
ness in general?fails in what may be the first responsi-
bility of his job. For if we do not hold ourselves open to
reasonable public inquiry ?if we remain hidden away in
our offices ?there is not the least hope we will ever
banish the suspicions the public harbors about business.
The, Roundtable is one example of what can be
done. We have committed ourselves to engage in the ar-
duous contest of ideas and interests and values by which
Americans make up their minds on matters of public pol-
icy. Only if all businessmen are ready to speak up for
what they believe and to test their convictions against the
convictions of others?however discomfiting this might
be and even at the risk of being wrong?can we assure
ourselves that what is declared to be in the public interest
really is.
John D. DeButts
CHIEF EXECUTIVE
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Approved For Release 004/0/28 : CIADP88-01314R000100190041-0
_
THE RESURRECTION OF
OUR MEXICAN ECONOMY
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Approved For Release 200I09 28 : CIA-RDP88-01314R000100190041-0
JOSE LOPEZ PORTILLO
PRESIDENT OF THE
REPUBLIC OF MEXICO
I am grateful for the opportunity the editors have
given me to present some ideas regarding problems that
are viewed with concern by friends of Mexico who are
readers of this novel publication.
At the end of 1976 the Mexican economy resembled
a basically healthy patient, but one who had lost confi-
dence in himself and whose vital signs were responding
discordantly. There was no need to operate ? what was
needed was recuperation.
I asked for time, and the people of Mexico gave me
that time. Recognition is due, too, to the world financial
community, which has also shown its understanding.
It is a privilege to be charged with handling the
crisis. Men and women alike are showing their willing-
ness to strengthen the bonds of human solidarity and to
create a better future for their children.
Financial and economic reconstruction has diverse
aspects, some domestic and others international, but all
interdependent. I have termed this joint effort the Al-
liance for Production.
THE ALLIANCE FOR PRODUCTION
That Alliance is aimed simultaneously at increasing
production of what is truly essential and at improving the
distribution of the results of our collective effort. Dis-
tribution "in driblets" ? that is, the primary accumula-
tion of products in the hands of a few for distribution at
some later, and invariably unspecified, date ? is unac-
ceptable.
The Alliance has met with complete understanding
on the part of many entrepreneurs, with whom agree-
ments have been made concerning new investment and
employment opportunities in various regions of the
country. Organized labor has provided the Alliance with
the basic foundations for its anti-inflationary struggle by
accepting a wage increase of 10% as a general standard.
During the first three months of this year the eco-
nomic situation has begun to show signs of overcoming
the adverse trends. Price rises are becoming moderate;
the intake of savings by the banking system is beginning
to show positive results; tourism is demonstrating con-
siderable vitality thanks to an appreciable increase in the
number of visitors and rising utilization factors in the
hotels; exports are benefiting from our newly competi-
tive position and, in the case of a number of natural
products, from rising prices; and finally, important new
projects are being launched by private investment, in
contrast to the stagnation observed in the recent past.
But we should not lose sight of the fact that the situ-
ation is still a difficult one. Mexico, like most mixed-
economy countries, is caught in the vicious circle of
simultaneous inflation and recession. There is no easy
solution; unemployment is an obvious sign of social
failure and the exaggerated rise in prices impairs the dis-
tribution of income and encourages speculation.
Mexico's basic problem has always lain in the fact
that its productive structure has traditionally been inca-
pable of providing the labor force with permanent and
well-paid employment. The gravity of our short-term fi-
nancial problems and the necessary reduction of in-
flationary pressures call for serious sacrifices on all our
parts; but those efforts are given meaning by their pros-
pects for a substantial medium-term improvement made
possible by our resources and capacities.
Unemployment in this country is conditioned by a
young and rapidly growing population. Mexico now has
62 million inhabitants, 40% of whom are under 15 years
of age. The current labor force is composed of 16 million
persons. In spite of efforts made to lower it, our popula-
tion growth-rate is still among the highest in the world.
This administration's goal is to lower it from its level of
3.6% at the beginning of this decade to 2.5% by 1982.
Industrialization and migration to the cities have
reduced our rural population from a level of 65% in 1940
to 37% in 1977. But in absolute terms the rural labor
force is still increasing, and this poses grave problems of
increased pressure on arable lands and increases emigra-
tion to the United States.
WE WILL PAY OUR BILLS
A certain disquiet has been expressed in interna-
tional financial circles regarding the Mexican economic
system's ability to make opportune payment of the ser-
vice charges on its public and private foreign debt.
CHIEF EXECUTIVE
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President Lopez Portillo
24
pprove or e ease
The Resurrection of Our Mexican Economy
Jose Lopez Portillo
Our payment capacity is assured. Our current ac-
count balance of payments has improved. During the
first quarter of 1977 the deficit was 300 million dollars,
which is equivalent to a reduction of 50% in the level re-
gistered during the same quarter of 1976. Our total ex-
ports increased by 35%, while there was a drop in our
imports of 20%. There has been a notable increase in
tourism to Mexico, while at the same time the higher
price of the dollar to our citizens has drastically reduced
spending by Mexicans in other countries.
Furthermore, Mexico possesses substantial quan-
tities of natural resources and has great potential in such
fields as fisheries and tourism.
OIL AND GAS
Although most mineral resources have not been
fully exploited, prospecting continues to increase the
volume of proven reserves. The most recent example of
this is the discovery of large oil and gas deposits in the
states of Tabasco and Chiapas.
The Golyer & MacNaughton firm is analyzing our
oil reserves, which at present amount to 11 billion bar-
rels. Potential reserves, however, may considerably in-
crease that figure, whose actual level will soon be known
thanks to the exploration program undertaken by Pe-
traleos Mexicanos , the government company in charge
of Mexico's oil production. Our present production of
one million barrels daily will rise to 2.25 million barrels
in 1982, and exportable surpluses will rise from 150,000
to 1.1 million barrels per day by that date.
But Mexico also has other mineral resources suit-
able for international trade. We are among the six most
important producers of silver, fluorite, celestite, sul-
phur, graphite, antimony, arsenic, baryta, bismuth,
mercury, lead and zinc. Coal, iron, manganese and cop-
per are also produced.
Our potential fishing wealth is also considerable.
Mexico has 10,000 kilometers of coastline bordering the
Gulf of Mexico, the Pacific Ocean and the Caribbean
Sea. Coniferous and tropical wood forests cover 34% of
the total land area.
PROBLEMS WITH THE UNITED STATES
Several latent problems exist with regard to the
United States; both countries, however, are well dis-
posed toward seeking viable and timely solutions.
During my recent visit to the United States I spoke
with my friend, President Carter, about viewing rela-
tions between our countries as a whole, and not, as has
been the case so far, in an isolated and sometimes con-
tradictory manner. We agreed to tie all aspects of the
problem into a single "package" covering employment,
investment, trade, illegal trafficking of drugs and so forth.
Let us consider an example. Because of our stage of
development, Mexico has no unemployment insurance.
Consequently, in times of reduced economic activity the
pressures leading to emigration to the world's richest
CHIEF EXECUTIVE market increase. Obviously, that influx of manpower
1 0041-0
creates problems in the United States, and a suitable and
viable solution must therefore be sought.
One means would be to stimulate investment in
Mexico in order to create jobs directly in this country,
but since such investment results in the remittance of
profits in foreign exchange, that exchange must be
earned by means of exports so as not to subject our bal-
ance of payments to unbearable pressure. Therefore,
United States trade restrictions are not justifiable even
on their own terms, since their overall direct and indirect
effect is probably to worsen economic and social prob-
lems in the United States itself.
PETROBONDS
We are convinced that international cooperation is
valuable, but that essential matters must be decided at
home. In order to rebuild the financial savings resources
needed to stimulate the new investment that is instru-
mental in creating jobs, there must be discipline in pub-
lic and private spending, and incentives to save must be
strengthened. We are determined to achieve this by
adapting our structures for attracting savings and adjust-
ing our interest rates to the new floating exchange rate,
with special emphasis on the creation of such new in-
struments as Petrobonos (oil bonds), which bear de-
nominations in pesos but are associated with barrels of
crude oil, and which will be placed on the market
shortly*, silver certificates, inasmuch as Mexico is the
leading world producer of this metal; and the minting of
silver coins.
In the present financial crisis foreign investment en-
joys a special advantage, since it provides risk capital,
an element that has always been scarce in Mexico and is
even more so today. Our laws in this field are designed to
conciliate interests in a climate of understanding and
mutual advantage. Both foreign and Mexican firms are
participating in the agreements drawn up for the Alliance
for Production. Our laws are not restrictive; rather, they
avoid abuses, and that is something that interests the
Government and foreign and national businessmen alike.
In many material and cultural aspects, Mexico is a
privileged country. It is already one of the few countries
which are net exporters of oil, and it has an enviable po-
tential in this field. It will soon become self-sufficient in
food, so that it will not have to depend on speculative
alterations in the world market.
A neighbor and friend of the most powerful country
in the world, with coastlines on the Gulf of Mexico, the
Pacific Ocean and the Caribbean Sea that afford a great
potential for tourism and fisheries, Mexico offers indus-
trial development a guaranteed supply of energy and a
broad and growing domestic market.
What is most fundamental is our will to do things
well and to do them in time? to live in the present, but
with a view to the twenty-first century.
*Bearer securities in 1,000 peso denominations, at three years and at
7 percent annually. This return will be deducted from the capital re-
turns on changes in the price of oil.
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pprove or e ease IS S A ? 8-01314R000100190041-0
A luxury hotel in the great European tradition.
Elegant, quiet, unruffled?never a convention.
THE MADISON
15th & Streets, Wort-Invest, Washington, D.C. 20005
Phone (Toll-free) 800-424-8577 or see your travel agent
liarShaii B. Coyne, Proprietor
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Symbiosis is a curious relationship. It is defined as
the intimate living together of two kinds of organisms
whereby such association is advantageous to each. It
seems to me that .journalists and business leaders are
hound together in just such a relationship.
Newspapers, broadcasting outlets and networks
survive on the advertising revenues that come from
business. Journalism can thrive only so long as the busi-
ness community remains healthy enough to provide
these funds. Business, on the other hand, depends upon
journalism to foster its own growth? through the
dissemination of information through news and
advertising.
Why, then, do business leaders so often seem to be
unaware, uncaring, or even supportive, of attempts to
limit freedom of the press? Why are they so hesitant to
supply information that enables the press to remain a
healthy force in American life? The answer is clear:
Most Americans pay lip service to a free press, and, in-
deed, believe in it sincerely?until it threatens their own
economic well-being.
I am reminded of a time that I had the pleasure of
lunching with the chairmen of seven of the nation's
major corporations to discuss some of the problems of
business and the press.
One, an insurance man, was enraged over one net-
work's report on private pension programs. He called it
"a distorted picture of the problems therein." They cer-
tainly had a right to report the matter, he noted, and then
added: "But I do think there ought to be something we
could do about television programs like that."
A representative of the lumber industry complained
that we overemphasize, presumably by merely report-
ing, the clear cutting of the nation's forest reserve. A
mining industry executive complained similarly about
our reports on strip mining.
An automobile manufacturer told me that we cer-
tainly ought to report on auto safety problems, "but you
give too much time to those crackpots like Nader."
Each of those men believes, quite sincerely, that it
would he better for him, for his company, if not so much
were said about their problems, if somehow some re-
straint could be imposed on the press in dealing with
such matters.
Where Are You, 'me Problems
Chief Exectitiws Haw
Mr. Chairman?
with the Press
(mid N ice-Nersa
,
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And yet, I darcsay the auto inan is fascinated by the
problems of clear cutting, strip mining, and private pen-
sion schemes as exposed by the daily press. Indeed, hav-
ing learned of the problem, he may also discover a S0111-
lion that could he of value and profit to him.
Also the reports on other people's business or com-
petitors in one's own business w ould be valueless if the
reputation of the press waS that it pulled its punches or
distorted its reporting to please any special interest.
Without a totally Free press the intelligence every busi-
ness needs in order to compete and prosper would he de-
nied it.
The press's biggest problem in dealing with big
business is reaching an authoritative and quotable execu-
tive. When a large company conies under attack or one
reason or another, and we try to reach top executives for
comment, we find they are usually unavailable. They
seem to hunker down and depend on usually most unin-
formative responses twin the public relations depart-
ment that can be summed up generally in either two
lines ? -The company denied the charges,- or "A com-
pany spokesman said the charges arc under stud.''
It is understandable that in the complex labyrinth of
corporate structures senior executives are anxious to
have their public statements approved by their manage-
ment committees or their boards before sticking their
necks out on sensitive issues. But they should under-
stand that this denies them immediate access to the
media so that their response to unfavorable stories can
share the same news period (the same broadcast or the
same newspaper edition) as the original charge. The
second-day story is never quite as effective.
It would be well if executives studied this public re-
lations matter in advance and had a plan that would per-
mit one of them with a title indicating top responsibility
to be designated as a spokesman with full authority to
answer inquiries on an extemporaneous and immediate
basis. It would he understandable if a statement issued
under such circumstances might not be all-inclusive, hut
it could still he directed at the specific charges or specific
problem and not he a general blanket denial.
In essence, die issue is one of accepting responsibil-
ity: When the public relations chips are down and your
company's good name is at stake, where are you, Mr.
Chairman?
N\ a 1(0' CrOl I k ii(`
I)`a 1 1 (If I Ile NN,
brOa(lCaSi la I isiS
( 1111 1\f(l I I?
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Things No One
Ewr rI11s lot!
1 Compendium of t ntisttal.
1i:wit Unauthorized Facts
Edited by Jim Aylward
You pay your people good money. They work day
and night. They' re loyal. They ferret out bits of ittforma-
tion they think you need. They copy it, color-code it,
catalog it, record it. It's at your fingers when you want
it. You have a report on anything. A study on whatever.
Unfortunately, there are some things NO ONE ever tells
you. Fortunately, we will.
One hundred eighty thousand Americans are mil-
lionaires today.
Tooth decay may be spread by kissing.
Brain work won't give you a headache. A headache
comes from lack of exercise. Exercise your brain all you
want, but exercise the rest of you at least once a day.
Bad breath? Chew some parsley.
Only one businessman in five cheats on his wife.
Even occasionally.
Avoid eating very hot and very cold food together.
The rapid change in temperature may crack your teeth.
If you like to bowl don't call it exercise. Dr. Paul
Hunsicker has ranked all the best sports for exercise and
bowling is the lowest on the list. Basketball is number
one.
The oldest business in the world? You're wrong.
It's England's Faversham Oyster Company. It goes back
to before 1189.
It's safer to work in a factory than in your office.
Forty-six and a half percent of all job-related accidents
happen in offices compared to a little more than thirty-
six percent in factories.
If you have a hard job to do that has to be done
properly do it early in the day. That's the time you do
the most accurate work. If speed is the thing, do the
job in the early afternoon. You work fastest around
two PM.
Poor women and rich men are your fatties today.
Twenty-five to thirty-five percent of all poor women are
pudgy. Seventeen percent of all men in the upper income
brackets have ring around the middle.
Any high protein food you eat before your party
will help slow down the effects of liquor. It's not just
milk that helps. An egg will help too.
Most people today feel that current products are not
quite or not at all as good as they used to be.
Migraine headache? Get under a hair dryer. The
warmth and the hum will relax you. Goodbye headache.
Indianapolis is home headquarters for the Society
of Dirty Old Men. If you have five dollars and you admit
that somebody once called you a dirty old man, you can
become a lifetime member. One of the club's resolutions
is "never take candy from strange children".
A twelve ounce potato has only two hundred
calories but all the vitamin C you need each day.
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Drinkers tend to interrupt and/or ignore the person
they're talking to.
Your left hand is a hard worker. It does fifty-eight
percent of the work of typing. Your right hand is lazy. It
just gets the periods and commas.
The most popular drink today in the world is water.
Liquor is in eighth place behind coffee, beer, soft drinks,
milk, tea and fruit juices.
The U.S. printing office has a publication called
"Color and The Graphic Arts". It's printed in black and
white.
If you're out of glue a little evaporated milk will
make a good emergency substitute.
The sun's spin speed is speeding up. It was forty-
five hundred miles per hour in 1976. It's now forty-seven
hundred fifty miles per hour.
There are seven hundred, seventy-five thousand
individuals living by themselves in New York City.
That's almost enough to populate San Francisco.
Dentistry is the most psychologically disturbing
field of medicine. It's that look of terror in your eyes
when you get into the chair that does it.
A sign at the United States Bureau of Engraving in-
sists "The buck starts here.?
Saying your prayers at bedtime could control your
blood pressure. Dr. Herbert Benson of Harvard says any
mental activity that brings you peace is good for your
health.
The average fifteen minute coffee break isn't. It's
eighteen minutes long.
The older you get the slower you think, but you
think better thoughts.
Feelings of anxiety decline with age.
Your orthopedic surgeon says more executives
today would feel better if they wore high heels. It's one
way to make your aching back feel terrific.
Unsanitary conditions may be found in nearly
ninety percent of the restaurants that serve the public.
Drivers are twice as likely to develop a ruptured
disc as non-drivers.
If you're taking antibiotics and they don't seem to
be working, it could be the food you ate for dinner. Brus-
sel sprouts and cabbage have a natural substance in them
that can counteract the medication's work.
Wives are sixty times more likely to become de-
pressed than are spinsters. The same applies to men. In a
study of fourteen depressed men, twelve were married.
A depressing study.
Seventy-five percent of industrial work accidents
happen to workers who won't eat their breakfast.
Electric Excedrin could be the pain killer of tomor-
row. They say an electric current gently applied near a
nerve will end almost any kind of ache.
When you brush your teeth, brush your tongue too.
Bacteria on your tongue can cause cavities on your teeth.
If science could immediately eliminate cancer, it
would add only one year to mankind's life expectancy. If
all smoking were stopped it would add five years.
Cracking your knuckles will not make you arthritic.
The chief harm in knuckle cracking is its annoying effect
on your friends and family.
For every shoplifter caught today, thirty-five others
get away.
Women steal more than men do.
Americans take seventeen billion aspirins each
year. That's about seventy-seven per person.
Your
ability to cope and to reason is decreased
when your mood is even a little on the down side.
The most difficult job in the world now is house-
wife. Also on the list is ditch digger, file clerk, dancer,
garment worker, lawyer, professor and traveling sales-
man. Brain surgeons, research writers and chief execu-
tives were not listed.
CHIEF EXECUTIVE
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R000100190 41-0
CHIEF EXECUTIVE
"Without Peace?
The Repercussions Are
Too Gruesome to Contemplate"
Anwar El Sadat
President of the
Arab Republic of Egypt
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pprove or
Like every sovereign state our primary concern in
Egypt is the national security and welfare of the Egyp-
tian people. However, unlike many states the regional
and international contexts play a vital and crucial role in
Egypt's destiny. This may be because of our geograph-
ical situation and the ties that bind us with many a politi-
cal sphere as well as our role in the area in which we live
and have lived for thousands of years; an area which was
the cradle of civilization and monolithic religions and
now the world's major source of energy.
It was only natural that the complex game of nations
did not exclude the Middle East. In fact it may be as-
serted that none of the fabled heroes across history have
not tried to control our area; Alexander the Great, Julius
Caesar and Napoleon Bonaparte, to name a few. It may
be that the road to world wide fame runs through the
Middle East and particularly Egypt.
The Effect of War
Interaction with the international context has helped
enrich our culture but it has also caused us much incon-
venience. It has forced on us a state of war for a pro-
longed period of time, a war that has hampered Egypt's
over-all development and affected the economic and so-
cial well-being and prosperity of the Egyptian people. If
peace were to be achieved in the Middle East, we would
be able to reallocate our resources towards steady and
rapid economic development thereby granting our
people the better life they deserve. Our desire for peace
does not only relate to the national context or even the
regional, it is only directed towards world peace and se-
curity as well as its stability with peace prevailing in our
area. The countries of the Middle East by using their
ample human and energy resources may actively con-
tribute to world peace and prosperity.
Towards this noble end, Egypt has spared no effort in
its search for peace. We believe that our area, which has
lived the last three decades in continuous wars and tur-
e ease
8-013140001 0190041-0
moil because of the unprecedented injustices done to the
Palestinian people, has all the right to turn that page and
address itself to the crucial problem of economic and so-
cial development. This, to be done, needs a strong basis
of justice, peace and stability. Egypt therefore has ac-
cepted the United Nations Security Council Resolution
242 of November 1967 which laid down the basic condi-
tions for peace, namely the inadmissability of acquisi-
tion of territory by force and the respect of the sover-
eignty and territorial integrity of all states in the area and
their right to live in peace within secure and recognized
boundaries.
Moreover, Egypt has cooperated fully with Ambas-
sador Jarring's peace mission and in that connection ex-
pressed her willingness to end the state of belligerency
with Israel and enter into a peace agreement with her in
the context of an overall peace settlement, provided that
Israel honors all her obligations under the Charter of the
United Nations and carries its commitments in accord-
ance with principles and terms of Resolution 242.
Unfortunately, our genuine desire for peace was met
with continuous Israeli intransigence and tactics of pro-
crastination thus undermining all peace efforts be it the
Jarring Mission, the Four Power Talks or the African
Wise-Men Initiative until the outbreak of the October
1973 War.
Toward Peace
The October 1973 War was but a step in our overall
peace strategy. You will recall that I stood before the
Egyptian Peoples Assembly on October 16,1973 amidst
the war and launched a peace initiative. I called for the
convening of a peace conference under the auspices of
the United Nations comprising all the parties concerned
including the Palestinians. This call duly manifested it-
self in the Geneva Peace Conference.
Israel has all along and since 1967 favored the status
quo which means the continuation of its occupation of
CHIEF EXFC1:11?1;
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CHIEF EXECUTIVE
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Without Peace-
Anwar El Sadat
the Arab territories and the continued denial of the Pales-
tinian rights, a concept which was shattered by the Oc-
tober War which revealed to the world the explosiveness
of the situation that some were reluctant to see. The Oc-
tober War provided us as well as many powers including
in particular the United States with the necessary im-
petus to pursue with vigor the search for peace. To that
end we have tried various formulae for peace as a noble
and sacred goal deserves indeed to be sought by all
means available.
The key to the settlement
The world attention was also focused as a result of
the October War on the Palestinian issue which we are
convinced constitutes the core of the entire Middle East
problem. Some like to obscure the circumstances that
led to the existing situation in our area. But we have got
to have our minds clear as to the basis of the problem we
are to tackle. That is why 1 want to reiterate that the
Palestinian problem is the crux of the Middle East prob-
lem, and therefore the key to an overall settlement. The
Palestinian people have endured tremendous pain and
suffering unparalleled in the history of mankind having
been expelled from their homeland and denied their ina-
lienable right to self-determination. That is why we in-
sist that the problem of the Palestinian people be solved
and that the Palestinians be represented in all peace
negotiations.
The PLO
The Palestine Liberation Organization has been
chosen by the Palestinian people as their representative
body. This decision of the Palestinian people was en-
dorsed by the Arab states at the highest level when they
recognized in the Rabat Summit Conference of 1974 the
PLO as the sole legitimate representative of the Palesti-
nian people. An international legitimacy has been con-
ferred upon the representativity of that organization by
the world community when the United Nations General
Assembly at its 29th session invited the PLO to partici-
pate in its deliberations on the Palestinian issue, granted
it the observer status and invited it to participate in all
peace negotiations. It is in the light of the above that
Egypt insists that the Palestine Liberation Organization,
in its capacity as the sole legitimate representative of the
Palestinian people, participate on an equal footing with
other parties concerned in the Geneva Peace Confer-
ence. Because without PLO participation the core of the
Middle East problem cannot be tackled let alone solved,
thereby rendering the conference unable to make head-
way towards a peaceful settlement.
Israel Undermines Peace
And now through Israel's insistence that the PLO
not be present at the Geneva Peace Conference, Israel is
indulging once again in her preferred policy: undermin-
ing peace efforts and the procrastination of the peace
process.
In this connection, I would like to point out an in-
herent inconsistency in the Israeli attitude vis a vis the
PLO. Israel calls the PLO a terrorist organization and
therefore she will never negotiate with it. On the other
hand she demands that the PLO recognize the state of Is-
rael as a precondition for negotiation. Recognition of a
state can only be demanded from another state or at least
a political entity, and yet Israel is denying the right of the
PLO to have a say in the destiny of its people.
Furthermore, Israel has participated in the Security
Council meetings alongside the PLO, so what is the dif-
ficulty in sitting with the PLO in the Geneva Conference
itself? More, if such a trend is accepted, namely this so
called right to choose the delegates of another party with
whom to negotiate, such a right should be guaranteed to
all sides, in which case we would have a lot to say.
The Geneva Conference
We feel that the Geneva Peace Conference is the
most suitable and adequate forum for peace negotia-
tions. As pointed out earlier it was based on an Egyptian
initiative. The Israeli procrastination tactics have con-
tributed to delay its reconvening until now. At present
we are doing our utmost to have the conference recon-
vened as early as possible this year. However, the recon-
vening of the Geneva Conference is not the end we de-
sire, it is but a means to the end: peace. It is through
Geneva that we hope to achieve a just and durable peace.
For peace to be durable it must be just. And for
peace to be just it must be based on the established prin-
ciples of international law as well as on the purposes and
principles of the United Nations Charter, namely: the in-
admissability of acquisition of territory by force and the
right of self-determination. Those principles, in prac-
tice, entail that Israel must end its occupation of all the
Arab territories it occupies since June 1967 and that it
recognizes the Palestinian's right to exercise their ina-
lienable rights including the right to have a state of their
own in the West Bank and Gaza.
President Carter
I would like to seize this opportunity to welcome
President Carter's recent statement about a homeland for
the Palestinians. This means that the President has a
grasp of the intricate issues that constitute the complex
Middle East problem.
The Peace Solution
The other elements of the peace solution comprise
the issue of borders, the security arrangements and the
end of the state of belligerency.
Borders? No Compromise
First, the issue of borders. The borders between Is-
rael and her Arab neighbors are either international
boundaries as is the case with Egypt and Syria or fixed
by demarcation lines laid down and agreed upon in the
1949 armistice agreements insofar as the West Bank and
Gaza Strip are concerned. There can be no room for
negotiation or compromise on that because we cannot
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negotiate our sovereignty or the integrity of our ter-
ritories. We are in fact negotiating to reach a just peace
which cannot be based on acquisition of other countries'
or peoples' territories.
Willing to Accept Demilitarized Zones
Israel has repeatedly called for defensible borders,
that subjective concept that no longer fits the realities of
modern times. With modern sophisticated weaponry
and nuclear arsenals deployed around the world nothing
is defensible in the military sense. A more concrete and
realistic goal would be to aim at restoring the June 1967
lines backed by international instruments. As a token of
our good will, we are willing to accept demilitarized
zones astride the 1967 borders to be patrolled by United
Nations forces or other devices that do not derogate from
the principles of sovereignty, territorial integrity as well
as the sanctity of international boundaries.
Before winding up the issue of borders, I would like
to make a final remark. Israel is advocating open borders
as one of the guarantees it requires to conclude peace
with the Arab states. She, however, defines it only in
terms of the Arab states opening their borders to Israeli
citizens. Apparently, Israel has not considered the other
side of the coin; or is this coin like all the others she pos-
sesses ? unique ? having only one side. Has Israel for
one instance considered opening her borders to the mil-
lions of Palestinians who are scattered around the globe
waiting to return to their homes?
International Guarantees Acceptable
Second, the issue of international guarantees. We
have repeatedly stated that we shall accept any guaran-
tees deemed necessary for peace provided they do not in-
fringe upon our sovereignty. We accept U.N. guaran-
tees, Security Council guarantees or big power guaran-
tees. We even went as far as proclaiming our indiffer-
ence to a unilateral United States guarantee for Israel in
the form of a defense treaty. We firmly believe that the
ultimate guarantee for Israel is acceptability. There can
be no better and more durable guarantee than Arab ac-
ceptance of Israel to live in the Middle East. This ac-
ceptability, however, must be built on a just solution of
the Middle East problem. Our imagination cannot con-
ceive of any other guarantees.
Israel Manipulates
As expected from Israel, she is consistently man-
ipulating the issue of guarantees. She is indulging in her
favorite theatrics in trying to convince the world that she
requires guarantees to safeguard her existence and not
just guarantees for peace. Let us be clear, it is the Arab
countries that are more in need of such guarantees. This
is a fact clearly manifested by the long history of Israeli
aggression against Arab territories.
So if Israel is serious in her desire for peace, let it
cease beating-around-the-bush and accept guarantees
that safeguard the security of all sides because her exis-
tence is not at stake.
Evacuate Arab Territories
0100190041-0
Third, concerning the issue of the end of a state of
belligerence, we are of the view that it would take place
as a result of the fulfillment of all the basic elements of
peace, namely the Israeli evacuation of all Arab ter-
ritories it occupies since June 1967, and the arriving at a
political solution to the plight of the Palestinian people.
In this connection, I would like to correct a discrepancy
arising from Israeli propaganda: that the Arab states
must end the state of belligerence as a precondition for
peace, thus implying that the Arabs were the initial bel-
ligerents.
The truth, however, is exactly the opposite. The
existing state of belligerence in our area was brought ab-
out, in the first instance by an act of Israeli aggression,
?First, against the Palestinian people and their
legitimate rights,
? Second, against the independent sovereign Arab
states. Consequently, if Israel is serious in its call for the
termination of the state of belligerence, it must allow the
Palestinian people to exercise their legitimate rights and
end its occupation of all the Arab territories she holds.
Our position concerning the termination of the state
of belligerence was stated in the clearest terms in our an-
swer to the Jarring peace initiative in February 1971. Our
position to this day has not changed.
We Look Toward a Zealous American Role
Much effort has been exerted for the attainment of
peace and therefore we feel that the time is ripe to fulfill
this noble aspiration. We are convinced that the year
1977 provides us with a unique chance for a peaceful set-
tlement. Let us not waste it. Let us all stand firm against
maneuvers of procrastination, because peace cannot
wait. We are looking forward towards a zealous Ameri-
can role, a role we consider crucial. The United States
has come a long way towards an even-handed position
vis-a-vis the dispute in our area. We are confident that
the U.S. shall maintain this course, for she possesses the
means that would facilitate the reacting of a just and last-
ing peace.
Repercussions Too Gruesome to Contemplate
In conclusion, I would like to reiterate Egypt's per-
sistence in the pursuit of a just and lasting peace. If Is-
raeli intransigence and evasive tactics continue, the
Geneva Peace Conference will inevitably be doomed to
failure. In that event we shall lay the matter before the
United Nations Security Council so that it may assume
the responsibilities assigned to it by the U.N. Charter as
the principal organ responsible for maintenance of inter-
national peace and security. If again progress is not
achieved we shall pursue our quest for peace through all
available options.
This is our consistant policy which vividly reflects
our resolution in exploring all the avenues leading to
peace. We hate to see it fail. The repercussions are too
gruesome to contemplate.
CHIEF EXECUTIVE
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?
?
THE CARTER EXPEDITION
.0
?
I traveled faster than the speed of light. I traveled
farther than any person had ever traveled. I left the planet
earth, sped through the universe, and arrived in a land
that is far different from any I had known. I had come to
seek a better life.
The beings that habitated this other world were
puzzled by my request to live there. They asked, "What
are your absolutely non-negotiable conditions for living
among us? What do you humans ultimately require as a
sine qua non for human life as you wish to live it? We
understand your biological necessities? air to breathe,
food to eat, shelter against heat and cold, a quiet place to
sleep? but what are your specifically personal require-
ments for human life? Tell us briefly so that we can de-
cide whether we wish to accommodate you on our planet
or not."
How could I briefly communicate to them our
bottom-line requirements for a meaningful human life?
What do humans really need and want to be truly human,
either on an alien planet, or at home on earth?
I began with what I judge to be God's greatest gift to
humans, freedom, freedom to be what I can be as a
human being. My mind, another great human gift, must
be free to range everywhere, knowing all that can be
known, all truth, all beauty, all creation. I must be free to
love all that is lovable, all the good and great and beauti-
ful manifestations of reality that fill the universe. I must
be free to develop my mind and my heart, to enlarge my
spirit in every way, to encompass all the universe, and
God, too, by knowledge and by love.
Humans, wherever they are, must be free to create a
human world as best they can. We are not really free if
we perceive injustice and can do nothing about it, if we
CHIEF EXECUTIVE see other humans in slavery and cannot free them. My
freedom must be able to create freedom where it does not
exist, or I am not really free, not humanly free.
This sounded reasonable to the leaders of the new
civilization that I wanted to join. They asked, "Did you
enjoy those human freedoms on earth?"
"To be perfectly honest," most of the people on
earth were not free, although the level of their freedom
or lack of it differed. Some were not free politically be-
cause they were governed by regimes that did not really
believe in political freedom? civil rights, as we say.
Others were not free because they were so economically
poor that freedom was meaningless. Their real problem
was to get enough food to survive, or a house for shelter,
or meaningful work to earn enough to provide for food
and shelter when it was available for a price. Then there
were a billion people who were not free because they
were illiterate, cut off from all the human culture and
learning of centuries of human development in litera-
ture, history, science, and art. Ignorance for them was a
very real kind of slavery. Last of all, to be perfectly hon-
est, there were those who lacked even elemental justice
regarding their lives ? political outcasts. They were kil-
led, imprisoned, tortured, exiled, and mistreated in
every inhuman way."
Now the leaders of this other planet were becoming
more curious and new questions came tumbling out:
"Human beings did this to other human beings ?killed,
tortured, starved, kept in ignorance, imprisoned like
animals? Did they not believe in these ideals of freedom
and justice and peace and love that you say you abso-
lutely need to live a truly human life in our planet? What
did you who were free do about this lack of freedom and
justice on your earth?"
"There was some discussion on the twenty-fifth
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?
w
?
?
?
REVERtNDTHEODORE M. HESBURGH;
PRESIDENT, UNIVERSITY OF. NOTRE DAME'
.
?
?
? ?
anniversary of the United Nations Declaration that
maybe there should be a High Commissioner for Human
Rights empowered to go anywhere in the world to inves-
tigate the denial of these rights and to report to all the
world when humans were being mistreated."
"Did you appoint such a person?"
"Well, no. It was all caught up in resistance by in-
dividual nations, especially those denying human rights,
saying that no one should interfere in their internal af-
fairs, that others were worse than they were, that their
national sovereignty was more important than anything
else."
At this point, my questioners almost exploded:
-More important than those human rights without which
you say you cannot live a really human life among us? If
what you request of us is right, how could humans on
earth deny it and still have a decent human condition on
earth?"
"Now you make me confess, with some shame I fi-
nally admit, we did not really have a decent human con-
dition on earth for the majority of human beings. There
were few very rich and many very poor. A few were free,
but most, in one way or another, were slaves. There was
little real interest in bridging the gap. The few wealthy
nations gave less than half of one percent of their gross
national product to help the poor. They all, rich and poor,
spent many times more than that, about $300 billion a
year, to buy the newest weapons of destruction. We had a
wonderful saying of long ago about peace coming when
we turned our swords into plowshares, but no one took
that too seriously, If you were really concerned about
arms control, you were suspected of being a kind of
traitor. The patriots were those who insisted on building
up mountains of armaments."
"Didn't anyone see the insanity of all this? Where it
was leading?"
"Well, the United States had a President who spoke
of curtailing the arms race and began to criticize these
denials of human rights when they occurred, in both
large and small countries. He said we couldn't run
someone else's country, but that when they did some-
thing inhumane, he was going to say that we thought it
wrong, that we would try to stand for human rights,
freedom, and dignity, both at home and abroad."
Finally, my questioners seemed relieved and asked:
"Was he cheered for that concern for the most important
need of human kind across the earth?"
"A few who deeply believed that what he was
doing was right and long overdue cheered him, but the
cheers were drowned out, both in his own country and
abroad, by powerful people who said he was too moral,
too relgious, too naive, too frank, too likely to cause
worse problems, if you can imagine what could be
worse."
"Did it get worse?"
"Much worse. When I left earth, the great oppos-
ing powers were about to blow each other up and destroy
the rest of the world in the process. In fact, that's why I
left to seek a better world. Humans on earth just did not
seem interested in saving themselves."
A final question: "And this President who tried to
turn the tide, what happened to him?"
"He is an old man today and one of the few on earth
who still believes in human freedom. I hold many of his
beliefs because I am his grandson. In fact, I was born a
few weeks after he became President and was named
after him.
My name is James Earl Carter."
(E11111 \I( 1.'11%1
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The typical business chief executive is mightily en-
dowed with the numerous skills and abilities that are
needed to run the great corporations.
These accomplishments are the envy of the whole
world and businessmen come from all over to study our
techniques.
However, this typical chief executive is woefully
lacking in one skill which is of the utmost importance in
these critical times:
He cannot make a speech.
He cannot even read a speech properly.
His speaking ability is far, far below the lowliest
local labor leader, not to mention the hack politicians.
Now, why is this so?
There are at least four reasons:
I. He has let himself be persuaded that he should keep
his mouth shut on public and political issues.
2. He has permitted his public relations people to pre-
pare his speeches for him, thus making them long,
boring and dull.
\\alter liming
Chairman,
TilTan and Compam
3. When he does speak, it is generally to audiences
made up of other executives.
4. He has made no effort to learn how to read a speech
or how to speak extemporaneously.
Now this is most unfortunate because we desper-
ately need to have heads of important corporations take
strong and vigorous positions on important questions of
the day. These positions should not be taken just by paid
heads of Chambers of Commerce or other such business
organizations.
If we really want to get the attention of the public,
the politicians and the media, these positions must be
presented by the outstanding business leaders them-
selves.
After all, it is our responsibility to defend the free
enterprise system. It is our responsibility to raise our
voices in defense of our way of life.
All chief executives should be persuaded that this is
of even more importance to the world than running their
corporations.
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pprove
?
or e ease Si, 1 A 111 101911, -0
Does the World
Hate Business?
The fact is that business, since we can remember,
has had a bad image.
During the Industrial Revolution in England, a
highly Protestant country, business was looked upon
as something that was not respectable.
In Catholic countries, the concept of business, I
find, is something that is frowned upon. Here in France,
people would rather discuss the bubonic plague than the
amount of money they earn.
Still, in the course of the 19th Century, business was
accepted because it created employment and although
the workers had to put in long and difficult hours in the
worst kinds of conditions, it was still better working than
starving to death. There was no welfare state at that time.
Emerging from the Great Depression and with the
United States and Franklin Roosevelt showing the way,
the business world was saved by the creation of a certain
number of laws and regulations which eliminated some
of the more savage aspects of competition in business
life. In the boom that followed World War II, when the
Baron Edmond de Rothschild
Chai mum,
1.4a Compagnie Fittattciere, Paris
whole world needed goods, from ships to automobiles,
to housing, to clothing and food, business was fairly
well regarded. The politicians and the media did not turn
on business since there was a big demand. But the mo-
ment we had abundance, business was again frowned
upon. The industrialists were building the wrong cars,
the retail shops selling at the wrong prices, the food
processing industries were using products that caused
cancer. Once the pressure was off the consumer to get the
goods, he became anti-business.
But, speaking frankly, being anti-business is a very
stupid attitude because, whether we like it or not, the
modern world, scientific developments, the industrial
boom have all combined to create prosperity in the west-
ern world. And even in the eastern world. We are not in a
post-industrial world. We are in an industrial world and
whether one likes it or not, the only way for people to get
employment, the only way to bring sufficient amount of
wealth to a tax system that permits a country to create
good schools, build homes, make roads, airfields, hospi-
CHIEF EXECUTIVE
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38 CHIEF EXECUTIVE
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Does the World Hate Business?
Baron Edmond de Rothschild
tals and finance research, is through the proper function-
ing of the industrial state.
But, speaking very frankly, there is no sex appeal in
admitting these truths. One is much more likely to get a
headline or attract public attention with a demagogic at-
tack on business. How easy it is to say: "Down with
General Motors and their big cars." How easy it is to say:
"Down with the oil companies." But it is not that simple.
General Motors is not against building small cars, but
small cars cost practically as much to build as big ones
and in America the consumer wants a big car for a small
price, not a small car with a big price. Why? Because if
you go on the roads of the United States, particularly the
interstate highway system, and you are next to a truck
barreling down the highway at 60 miles an hour, you
don't feel very safe in a small car. The same kind of logic
applies to the oil companies. Since the start of the energy
crisis, it has been fashionable to blame them for shor-
tages and rising prices without taking into account the
money they have to spend on developing new sources of
petroleum. And one thing is overlooked in all of these
arguments. Who owns General Motors? Who owns the
oil companies? The public does. We often hear the word
that they are in the hands of big trusts, but the big trusts
of today are the pension funds of workers, mutual funds,
and these are mostly made up of the small savings and
future pension payments of working people.
It is true that in the past it was not always this way. I
come from a family which belonged for more than a cen-
tury to the race of capitalists. These capitalists ran their
enterprises to make profits for themselves. That is rather
true today. The large concerns are almost wholly owned
by the public and by institutions which represent the pub-
lic. They are run by professionals who have nothing to
do with the ownership of the company. These are highly
qualified people and in today's world they must be
trained in ways that were not even dreamed of 25 years
ago. They must be trained in oil and finance; they even
have to be diplomats and statesmen; they have to have a
special understanding of the workers they employ and
the conditions in which they work; they have to think of
their shareholders and the failure to do so cuts them off
from the possibility of going back into the market and
looking for an augmentation of capital when they need
it. My own son, who I am training to take over my busi-
ness, will have to be far more professional than I was at
the end of World War 11 when I took over the business
and it did not require particular genius to make money
because there was so much demand that almost every-
thing you touched was bound to go right.
My personal approach to big business and to the
men who run these businesses is their penchant to leave
the explanations of their activities to lawyers and public
relations men. What they should be doing, instead of
being on the defensive and shying away from the public,
is to be out front, on the attack, explaining what is
wrong, why the job they are doing is a proper job. In my
opinion, the business world shouldn't lobby. It should be
clearly said: "That's what we do. That's the kind of
wealth we create. If you like it, you take it. If you don't,
I will stop." My meaning is clear.
One last thought. In all this anti-business atmos-
phere, some of the biggest attacks have been leveled
against multinational corporations on the grounds they
are too big and too powerful. This is a false concept. I
would say that actually the multinationals in any particu-
lar country are weak. They want to be a better citizen of
that country than the actual citizens of that country. The
result is that they are usually weaker than their national
competitors. It is also false to say that the multinationals
keep on growing. I think they peaked in the 60's and I
think that informed people now believe that national
companies are a better system than international multi-
national businesses. There are obviously advantages in
creating worldwide markets than having to duplicate, for
example, research departments, but there are also big
drawbacks.
In conclusion, my feelings are that we in business
have not done a good job of telling people what we do.
We have been too much on the defensive. We are making
a final contribution to the world that we live in and we
should not be afraid to say so out loud.
Photo Credits
Cover: Allen Green, Photo Researchers, Inc.
Page eight: Official White House photograph
Page ten: Pete Turner, The Image Bank
Page sixteen: Robin Forbes, The Image Bank
Page seventeen: Charles Steiner
Page twenty-two: List Dennis, The Image Bank
Page twenty-eight and twenty-nine: James F. Horvath
Page twenty-four: Hale Observatories
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pprove or e ease
-0131 R00010019 041-0
Business Success Benefits Everyone
Through the dedicated service of Lipton employees in all kinds of jobs, the Company can be proud of
its twenty-five consecutive years of increased sales and profits. Lipton has traditionally plowed the major
portion of its profits right back into the business to provide its employees with better facilities, new
equipment and increased job opportunities.
Expansion of product lines and emergence of new jobs mean more money spent in the community...
expenditures that continually aid the local area's economy. And, of equal importance, is our firm resolve
to provide our consumers with the best quality products possible.
Although Lipton operates nationally, we are really in partnership with the local community since we
draw from the skill and creativity of its citizens to produce a level of excellence that will allow us to grow
and develop together.
Thomat-, J. Lipton, Inc.
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Approved For Release 200 /09/28 : CIA-RDP88-01314R000100190041-0
First Class
connoisseurs prefer
Lufthansa.
You don't have to change your way of traveling when you change planes in Europe. You can
go First Class on every Lufthansa flight.
Lufthansa. The more you fly
Lufthansa
German Airlines
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STAT Approved For Release 2004/09/28 : CIA-RDP88-01314R000100190041-0
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2
2 / 4-224 K.a..exia---exes-aiil
: tai 'It VA
? ,
1977
.o..9,1011.101.1110111...M.1.0.11?11.1.11?1111
N? .166-77-
e Preparing Reforms to Avert New Fighting
5 --- ? 7
ea+ INE HOWE
Nt Vert ?Imes
nn, June 14?Lehe
aa -
nig out urgent poi ical ?
empt to avert A recur-
of bitter strife.
aarkis and Prime Minis.
have met repeatedly j
e country's Moslem and!
.a win a consensus for
nm.
-.ve a national political
are can come to grips
problems." the Prime
"veekend, describing the-
? "cruciaL" !
1 still unsolved because I
sue is reconstruction of i
-:as splintered into sec- j
Eng the. war. Last night.
5rd to postpone until I
eek's deadline for the I-
-cers. Informed sources:
g Christian groups had'
te with the new armyj
a was a political eettle-
j
ricat system distributes 1
vii sen ice and legisla-1
rding to tee numerical
; importance of the Christian and Moslem 44 to Moslems.
sects. This system may not have caused
the recent fighting, but iv provided fertile
terrain for the spread of hottllities. which
originated between right-wi e. Christians
j
and leftist Palestinians. ' 0,
Since Arab peace-keepi forte% ended
the war..seven months ago, there have
been:widespread pressures for basic po-
litical:a chanee. The proposal,..- include
everything from virtual partition:to.total
secularization.
Dory,.Chamoun. a Maronite..Christian
leader -and secretary general of the Na-
tional .Liberal Party, favors a system of
"political decentralization," 'that Would
divide', the country into Moslem and
Christian areas. This would eliminate fric-
tion between the two communities, he
said. 'The Moslems will have full respon-
sibilities in their areas and we Christians
in-ours." : -a
?Moslems. on the other hand, criticize
the original syrtem as favoring the Chris-
tian community, and demand equal
powers. Under the system, established
when the country became independent
111_1943, the nation's president had to
be ' a alaionite and' the prime -minister
a Sunni. or Oathodox. Moslem, In Parlia-
ment. 55 seats were allotted to Christians,
A group of students from the state-
ren Lebanese University, jncluding Moe.
lams. Maronites and Protestants, agreed
in a recent discussion that the old system
was no goad because it "institutionalizes
religious rivalries." They recommended
secularization, but quickly pointed out
that the traditional political leaders
would not agree because they depend
on religious support. .
The president has not made public- his
reform program because it is still tinder
discussion. The new political formula
alms at "national appeasement." accord-
ing to'-, senior Government official. He
insisted that the majority of the popula-
tion favierraisi1 roey fn pro.
.14.111 .1
"Only an extremist fringe wants parti-
tion, and the country is nor ready for
secularization." the official said. disclos-
ing the broad lines of the planned amend-
ment to the Constitution.
The reform proeram would preserve the
sectarian stricture of the highest govern-
ment posts but would eliminate religious
quotas in the civil service. The electoral
laweyoald be revised so-that the. numbar
of seats, in Parbamenr would he-equally
',ended between Moslems and Chest:ans.
3semb1ing Narrow Coa
I/ 6BT
r.,,L.11.!A?iisli. ,E..... Fy!klitT,RELL
_ 14?Menahem Begin ; the phrase 'present condition.'" "
_g up a narrow coalid Some Likud officials said that there
a Likud bloc and reli- i.was a move in the party to leave vacant
I a few ministerial portfolios for up to a
Dyeing the refusal of . month as an enticement to the Democrat-
y to join his cabioet.'t ic Movement to rethink its rejection of
_ere. backed by 63 of a linkage with Likud. But other Likud
Parliament- ja ached- officials felt that enough attempts to woo
eal to the legislators
..After' it receives. a
?a step that seems
?Mrs Begin is due to
erime minister.. '-
ss to form a stronger,
- coalition foundered
t Democratic Move-
new political entity
Knesset. or Parlta-
nk off talks with Mr.
.er Likud alliance,
ms not being offered
-er major issues. -
sraerS tentiori of
a West Bank of the
-d during the 1967
they are part of
meland of the Jews.
ment favors territo-
gen for a true peace
c Movement closed
on Joining in a
it did not slam It
geologist who was
if the Democratic
-aid that in the
-ought we should
sent---I emphasize
the new party had been made and that
alt the key posts should be allotted. -
Likud now has 45 seats and can muster
63 votes with the aid of two religious
parties and a couple of scattered seats.
Such a government would have a nation-
alist and religious tinge.
Labor Federation to Vote
_
:Meanwhile, interest is focusing on an
election scheduled for next Tuesday with-
in the Histadrut, or General Labor. Federa-
tion, which has long been controlled by
the Labor Party.
Labor politicians are striving to retain
that control, particularly in view of their
defeat in the parliamentary elections May
17. If they do, Labor's role as a strong
opposition party would be enhanced since
the tilstadrut would be in a strong posi-
tion to try to thwart Mr. Begin when
and Jab? iek.)
he attemp igutement Likutc
A tots of 1.3 million members an eligi-
ble to vote?more than half the country's
registered voters?and some 900,000 are
expected to do so, according to the Hists-
drut secretary general, Yerhuarn MesheL
-Likud favors greater economic involve-
ment by the private sector and the dimi-
nution of many of the privileges the lila-
tadrut has gained
25,000 LEADERS WILL GET
CHIEF EXECUTIVE MAGAZINE
new quarterly,. magazine, Chief Ex-
ecutive, is scheduled to begin publication
at the end of June. It will have no news-
stand sale and no subscriptions and it
will be sent only to "25,000 distinguiihed
leaders of the world," according to an.
advance copy of the first issue.
'It is the purpose of Chief Executive:
magazine to provide- a forum for the
world's most important and influential
leaders to speak quickly to themselves
and to give new ideas and inspiration
toward ar-bette/ rld - the first issue
states. 4d- '.?5
It contains articles re ent tier:
Jos?opez Portillo, President of Mexico;
and Anwar el-Sadat, President of Egypt,
and an interview with the Shah of Iran.
The magazine's president and editor in
chief is Henry 0. Dormann, former chair-
man of the board of the National En-
quirer. Mr. Dormann -said the magazine
would be financed by its advertisers. Only
full-page advertisements are - -opted.
They cost $10,000 a page and Ste AO for
the back cover. - - ? -
61
British Government Block
Of 67 Million BY. Shares
Priced at Over $1 Billie
, LONDON, June 14 (AP)?Gold prices
Dovernment todav detailed the terms rat
the sale of its 66.4 pailion shares of Brit-
ish Petroleum Compare.- stock for about
Si billion. It weuld be the nation's largest
corporate sale ever. -s
The shares, sepresenting about 17 per-
rent of the company's stock, are being
offered at 8.45- pounds each 014.53
apiece at today's exchange ratej. ?
Underwriting of the offering, which
being carried out by more than a dozen
major London merchant banks and stock-
brokers, was going "quite wen." accord-
ing to one London broker.
However,. 13.P. shares were quoted on
the London stock exchange for most of
the day at about .865 pence ($14.88). com-
pared with 890 pence (515.31) late yester-
day. Trading in the B.P. shares was very
light.
The Bank of England. which announced
the-teem,t of the sale, nfirmed that as
much as/25' percent of the Shares being
sold may be offered in North America
at a dollar price not below the British
offer.i
Te closing price of the stock on the
New York Stock Exchange yesterday was
15%. up%-] -
The Government has held about 68 per-
cent of 13.P.'s stock and will still control
I. 51 percent of the company after comple-
tion of the sale.
It announced last December that it
would sell part of its B.?. holdings as
part of the package to obtain a $3.9 tail-
lion standby credit from the International
Monetary Fund.
The sale has been opposed by'some
members of the cabinet-, including the
Energy SerlartIAntinyi Wedg acid
jGovernment o rsh p4-`ish
Petroleum rose to the 68 percent levet
in early 1975 after the Bank of England'
purchased Burnish Oil Company's 20 per-
cent interest in B.P. to help Burmah over-
come financial difficulties.
However,. Burmah and many- ,of its
shareholders say that the price, of 230
pence paid for the B.P. shares at that.
time (equivalent to $3.96 at today's ex-
change rates) was unfair compensation_
considering that prices on the London'
stock market were close to, a20-year low
at the time.
Burmah is now seeking to buy back
its holdings from the Bank of England'
at the original price. The dispute has
been set tl ed.