Padraig Colman

Rambling ruminations of an Irishman in Sri Lanka

Tag: Robert Kennedy

Nixon Part Three

This article was published in Ceylon Today on Thursday December 22 2016

Colman's Column3

Henry Kissinger frequently referred to Nixon as a madman but said: “Can you imagine what this man could have been if somebody had loved him? He would have been a great, great man had somebody loved him”.

Oops!

Evan Thomas, in his somewhat sympathetic biography of Nixon, A Man Divided, almost makes one feel sorry for the man’s awkwardness. He was inept at anything requiring hand-eye coordination. When mounting the dais for his inauguration in January 1969 Nixon tripped and the ambassador from Ecuador noted that his last utterance before taking the oath was “Oops!” He frequently stabbed soldiers he was pinning medals on; at a treaty signing he forgot to take the cap off the pen and then dropped it, leaving aides to scramble around on the floor; he danced like a man with three left feet.

Friends

Stewart Alsop the columnist coined a new word Nixonophobia to describe the allergic reaction that many people, including Republicans, had to Nixon. When Nixon was vice-president in 1955, President Eisenhower had a heart attack. Party chairman Leonard Hall was asked what the Republicans would do if Ike died. Hall replied: “We would run him anyway. There is nothing in the Constitution that says the President must be alive”.

Nixon was generally uncomfortable with women and although he used his wife Pat to boost his career he was often cold and impatient with her in public. He would gallantly open doors for other women but march on through in front of Pat as if she were not there. Once she came into the room when he was preparing for a broadcast. He shouted: “Haven’t I told you never to bother me while I’m working?… Now get out”. There were credible allegations that he struck her in his drunken rages.

Many people commented that Nixon was lonely and friendless but he did develop a strong attachment to Charles “Bebe” Rebozo, a Florida businessman of Cuban origin who had grown rich from real estate. When he was 18 in 1931, Rebozo had followed an intense friendship with Donald Gunn by marrying Gunn’s sister Clare. The marriage was not consummated and was annulled. She married and had two children but her husband was killed in the war. Rebozo proposed to her again and she accepted but the second marriage only lasted two years. In middle age, Rebozo formalised what was described as “an antiseptic relationship” with his lawyer’s secretary. An airline steward claimed to have had a long sexual relationship with Rebozo and someone else said Rebozo had definitely been a member of Miami’s homosexual community.

nix-rebozo

Gambling

navy

When he was in the Navy, Nixon showed a flair for poker which enabled him to come home from the war $10,000 richer ($132,879.21 in 2016 value). There is evidence that Nixon lost his winning streak on a trip to Cuba with Dana Smith, a lawyer who was a friend of Nixon’s and managed a fund setup by businessmen for Nixon’s expenses. As well as doing Smith a favour with the IRS, Nixon, in August 1952, had written to the State Department about a problem with a gambling debt of $4,200 ($37,486.98 in 2016 value) run up by Smith at the Sans Souci casino in Havana. To cut a long story short, it seems that it was Nixon who lost the money not Smith. Witnesses claim that Nixon lost $50,000 ($446,273.58 in 2016 value) at the Hotel Nacional in the early 50s and Rebozo bailed him out. Rebozo was friendly with the owner of the Hotel Nacional, Meyer Lansky, the mobster. Nixon was granted complimentary facilities at the hotel. When Robert Kennedy was handed documents showing that Lansky had footed Nixon’s bill he did not use them because of the Mob connections of his own father and brother.

Cuba

Nixon developed something of an obsession with the aborted attempt by the Kennedy administration to overthrow Castro with the Bay of Pigs fiasco. William Pawley was a staunch and rich right-wing Republican who had donated to Nixon’s campaigns. He had grown up in Cuba and detested Castro. His niece said that Pawley was for years “up to his eyebrows” in attempts to topple Castro and that Nixon was one of his key contacts. The last US ambassador to Cuba, Philip Bonsal, had no doubt that Nixon was “the father of the operation” to topple Castro.

Buying the President

Joe McGinniss wrote a book about the 1968 presidential campaign called The Selling of the President in which he described how Nixon was marketed with the help of the J Walter Thompson advertising agency and two television producers. His chief of staff Bob Haldeman came from the J Walter Thompson agency.

hrhaldeman

In a previous article, I described how Nixon, in his first Congressional election campaign, used dirty tricks to defeat Jerry Voorhis. Voorhis had made himself unpopular with big business by exposing shady deals and dodgy profits. Nixon’s opponent in his bid for the Senate, Helen Gahagan Douglas, was outspokenly anti-Communist but was also in favour of limiting the power of big business including the oil industry.  Nixon was very different, having made friends in the oil industry in the 1940s. At a meeting in 1946 of 75 executives, Fred Ortman said they had found just the man to beat Voorhis. “If he makes it, he has what it takes to go all the way. He says he can’t live on a congressman’s salary. Needs a lot more than that to match what he would get in private law practice… We’re going to help”. It is interesting to note that President-elect Donald Trump has named an oil executive as his Secretary of State.

Mob Connections.

Murray Chotiner, Nixon’s dirty tricks specialist, and his brother Jack Chotiner, were partners in a law firm which handled 221 bookmaking cases in a four-year period. The betting industry was controlled by organised crime. In his very first campaign, Nixon had taken money (initially five thousand dollars – $44,127.80 in 2016 value) from Mickey Cohen, a flamboyant gangster (and former partner of Bugsy Siegel) who operated in Nixon’s constituency. Cohen was getting his orders to support Nixon from notorious mobsters Meyer Lansky and Frank Costello. Cohen arranged a payment of $75,000 ($751,668.43 in 2016 value) for the campaign against Gahagan. Rackets investigator Walter Sheridan asked, “who would you invest your money in? Some politician named Clams Linguini? Or a nice Protestant boy from Whittier, California?”

meyer-lansky-nywts-2-1449697540

There were allegations that Nixon accumulated vast funds with Rebozo’s help. His net worth tripled during his five years in the White House and investigative journalist Jack Anderson alleged that Rebozo and Nixon both had much more in Swiss bank accounts. A Swiss hotelier who was a fan of Nixon recalled that even during the 80s Nixon travelled to Zurich every year, sometimes with Pat, sometimes with Rebozo.  Rebozo had connections with gangsters that Nixon must have been aware of.

Howard Hughes was not known as a philanthropist but he gave Nixon a large donation, brokered by Rebozo, and his problems with the IRS vanished. Terry Lenzner, who was the chief investigator for the Senate Watergate Committee, speculated that it was Nixon’s desire to know what the Democrats knew about his dealings with Hughes that may have partially motivated the Watergate break-in. Anthony Summers in his biography of Nixon, The Arrogance of Power, presents evidence in the form of a photocopy of a neatly hand-written memo from Hughes setting out what he expected from Nixon in return for his donation to the 1968 campaign. He wanted the Vietnam war to continue so that he could recoup his losses on helicopters. He basically wanted whoever was president to be in his debt: “I Howard Hughes, can buy any man I want”.

hhughes

During Nixon’s unsuccessful bid for the governorship of California in 1962, an official of his opponent Pat Brown, visited Mickey Cohen in Alcatraz and obtained a signed statement that Nixon had received Mob money in previous campaigns. Rebozo and Nixon were still dealing with Meyer Lansky during the 1968 presidential campaign.

cohen-1933

Next week – Nixon’s further crimes.

 

 

 

 

 

Economic Growth

This article appeared in the November 2008 edition of LMD (Lanka Monthly Digest).The strapline was: “To grow or not to grow? Michael O’Leary goes in search of an answer to this conundrum”. I think that what I was trying to get across to a business audience was that I was not a fan of growth but I would like to see established in Sri Lanka some of the measures of good governance that growth proponents recommended.

 

Seventeenth-century Spanish Conquistadors in America destroyed all the settlements in their path and returned from their wanderings to starve, because there was nothing left to loot. Are we, 2lst century conquistadors, destroying our planet in the never- ending quest for economic growth?

 

As long ago as the 1960s, Robert Kennedy warned that GDP “is indifferent to the decency of our factories and the safety of streets alike”. He added: “It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning. Neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile.”

 

There are four basic arguments against pursuing growth:

 

  • Growth has negative effects on the quality of life. ‘Pleonexia’ means pathological greed that can cause stress, addictions and compulsions, ‘affluenza’ and loss of moral grounding.
  • Artificial needs are created. Zygmunt Bauman wrote that capitalism has made consumers immune to satisfaction. Desire no longer desires satisfaction. ‘Desire desires desire’, which is the basis for our new ‘constant greed’.
  • Growth depletes natural resources and is ultimately unsustainable. If everyone consumed at the US rate, we would require nearly five more planet Earths! According to the Red Cross’s World Disasters Report, the frequency and cost of natural disasters will increase due to a combination of environmental degradation, climate change, urban population growth and economic globalisation.
  • The gap between the richest and poorest is widening. Although there was never enough income at the peak of the pyramid to allow an egalitarian distribution to raise the bottom very high, the magic process of growth would – or so it was thought in the 60s – bring the bottom near to the top during a period of only a generation or two.

 

According to Social Limits to Growth, Fred Hirsch, as a society becomes wealthier and more engaged in a positional contest for consumption, it becomes more difficult – not easier – to arrange for the redistribution of income by government. “The flaw in the affluent society lies not in the false values of affluence, but in its false promise,” Hirsch theorised.

 

Even when Sri Lanka was boasting an official growth rate of 7.5 per cent, this growth was not converted into poverty reduction. The income of the poorest in this country fell from 18.9 per cent of the income of the richest in 1963 to 13.4 per cent in 2002.

 

In the US, the wealth gap is currently at its widest since 1929. ln 1968, the CEO of General Motors (GM) took home 66 times the amount earned by the typical GM worker. In 2005, the CEO of Wal-Mart earned 900 times the pay of his average employee. There are more than 600,000 millionaires in the UK and35 billionaires. More than 2.5 million children – around a quarter of the total – are living below the official poverty line.

 

The Growth Report recently published by The World Bank (WB) is in no doubt that growth is the answer to the world’s problems, particularly poverty in the developing world: “In short, we take the view that growth is a necessary, if not sufficient, condition for broader development, enlarging the scope for individuals to be productive and creative.”

 

Since 1950, 13 economies have grown at an average rate of seven per cent a year or more for 25 years or longer. Nine of them are in Asia: China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan and Thailand. They share common characteristics: engagement with the global economy, macroeconomic stability, high rates of savings and investment, the market allocation of resources, and credible and capable governments.

 

The Growth Report provides a handy checklist of bad ideas:

 

  • Subsidies, except for those targeted at highly vulnerable groups.
  • Dealing with unemployment by creating false state-sector jobs.
  • Cutting infrastructure investment for short-term gains.
  • Providing open-ended protection of specific sectors.
  • Dealing with inflation through price controls.
  • Treating environmental concerns as an unaffordable luxury.
  • Underpaying civil servants, including teachers.
  • Excessive interference in the banking system, which prevents the development of an efficient system of financial intermediation and reduces productivity.

 

Whichever side one takes in the debate about whether the pursuit of growth is good or bad, The Growth Report offers some sound advice about good governance and economic management. It stresses the importance of an effective and accountable civil service free of any taint of corruption: “Government leaders send powerful signals about values and the limits of acceptable behaviour when they decide on how to respond to cases of misbehaviour. Mild responses send the clear signal that while the misbehaviour is not right, it is not all that serious.”

 

According to the WB report: “The historical record shows that growth requires broadly stable prices, a currency that is not debauched by hyperinflation. Growth is about more than economics. It also requires committed, credible and capable governments …The country’s policy-makers must communicate a credible vision of the future and a strategy for getting there. They must be trusted as stewards”.

 

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