Baker occupies a complicated place in the consortium's January proposal--he is both problem and solution, stick and carrot. In the documents, Baker's name comes up repeatedly, usually in tones of high alarm. "Mr. Baker's new role and the likely emergence of what will be understood as a new round of global negotiations over Iraqi debt--casts all of these issues in a new light and gives them a new, perhaps even intense, sense of urgency," states a letter signed by Madeleine Albright; David Huebner, chairman of the Coudert Brothers law firm (another consortium member); and Shahameen Sheikh.
Click here to read documents detailing James Baker's conflict of interest.
Research support for this article was provided by the Investigative Fund of The Nation Institute.
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On January 21, 2004, James Baker's dual lives converged. That morning Baker flew to Kuwait as George Bush's debt envoy. He met with Kuwait's prime minister, its foreign minister and several other top officials with the stated goal of asking them to forgive Iraq's debts in the name of regional peace and prosperity.
Baker's colleagues in the consortium chose that very same day to hand-deliver their proposal to Foreign Minister Mohammad Sabah Al-Salem Al-Sabah--the same man Baker was meeting. The proposal "takes into account the new dynamics that have developed in the region," states the cover letter, signed by Albright, Huebner and Sheikh--dynamics that include "Secretary Baker's negotiations" on debt relief. If Kuwait accepts the consortium's offer, they explain, "we will distinguish Kuwait's claims--legally and morally--from the sovereign debt for which the United States is now seeking forgiveness."
Was it a coincidence that the consortium submitted its proposal on the same day Baker was in Kuwait? And which James Baker were Kuwait's leaders supposed to take more seriously--the presidential envoy calling for debt forgiveness or the businessman named in the proposal as a potential ally in their quest for debt payment?
Ahamed al-Fahad, under secretary to the prime minister of Kuwait, told The Nation, "I have seen it [the proposal] and I am fully aware of the situation." But when asked about Baker's dual role in Kuwait, he said, "It's hard to comment on that issue, especially now. I hope you fully understand."
Shahameen Sheikh, the consortium head who made the delivery, says the timing was a coincidence. "It had nothing to do with Mr. Baker's visit.... I was in the region so I thought I would stop over on the way to Europe and deliver the proposal."
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