March 2007
Volume 1 Issue 2

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Permanent War, Perpetual Profiteering

“Ex”-KGB Arms Merchant Viktor Bout and Dick Cheney's Halliburton Corporation have set up operations in Dubai, UAE; these “Lords of War” are now poised to capitalize on anticipated conflicts in the Persian Gulf and beyond.

By William Norman Grigg


“Enjoy it.”
“ What?”
“ This.... Tell me I'm everything you despise. That I'm the personification of evil. That I'm responsible for the breakdown of the fabric of society and world order. I'm a one-man genocide. Say everything you want to say to me now. Because you don't have long.”

The cocky defiance displayed by international arms dealer Yuri Orlov seemed to be misplaced.

Arrested and awaiting his arraignment on numerous charges, Orlov was in the custody of his nemesis, the idealistic Interpol Agent Jack Valentine. The investigator had pursued Orlov across several continents, generally following the trail of corpses left by his clients – chiefly petty dictators in squalid African countries that were more or less constantly at war for no defensible reason.

Orlov's serene confidence was a product of something he knew that Valentine didn't: They worked for the same people, who had much more use for a man who supplies weapons to terrorists and dictators than someone who seeks to stop that trade. Orlov gently broke the news to Valentine that within five minutes his superiors would get a phone call ordering his release.

“The reason I'll be released is the same reason you think I'll be convicted,” he told Valentine earnestly. “I do rub shoulders with some of the most vile, sadistic men calling themselves leaders today. But some of these men are the enemies of your enemies. And while the biggest arms dealer in the world is your boss - the President of the United States, who ships more merchandise in a day than I do in a year - sometimes it's embarrassing to have his fingerprints on the guns. Sometimes he needs a freelancer like me to supply forces he can't be seen supplying. So. You call me evil, but unfortunately for you, I'm a necessary evil.”

Yuri Orlov, the Ukrainian-American arms dealer played by Nicholas Gage in the 2005 film Lord of War, is a broadly drawn fictional analogue to “ex”-KGB arms trafficker Viktor Bout.

In 1993, after the Cold War ended, Bout assembled a small fleet of Soviet military aircraft and went into business ferrying weapons to Taliban-ruled Afghanistan and African dictators. According to the State Department, Bout currently commands a fleet of 60 cargo planes staffed by 300 pilots and employees, and operates a shifting roster of companies used for providing arms – such as assault rifles, ammunition, missile launchers and helicopter gunships -- to clients embroiled in various conflicts. At least some of his business involved shipping cyanide and other toxic chemicals to Afghanistan for use in experiments conducted by al-Qaeda.

Bout has at least a half-dozen passports and several aliases, and he's been the subject of various international warrants, investigations, and financial sanctions (his US assets have been frozen by the Treasury Department). He is shrouded in a malevolent mystique worthy of a James Bond villain. It's likely that the truth about Bout is that he's much more like Nicholas Gage's Yuri Orlov, a glorified errand boy on the payroll of the real “Lords of War” -- people like the ambulatory wad of unfiltered evil called Dick Cheney.

In early March we learned that Halliburton is moving its corprorate headquarters to Dubai, in the United Arab Emirates, which has served as Bout's base of operations since 1997. Roughly a year ago, I published a piece in the now-defunct Birch Blog suggesting that there was a Bout-related subtext to the abortive deal to turn US port security over to DP Ports World, which is also based in Dubai.

Conveniently for both Halliburton – Cheney's once-and-future corporate home -- and Bout's ventures, the UAE does not permit extradition, and has an almost unlimited tolerance for graft and corruption.

“Halliburton will be moving to a `comfort zone' when it relocates its headquarters to Dubai, a place where there are no taxes to pay and where corruption, while not a virtue, is not a vice,” observed Youssef Ibrahim in March 15 New York Sun. The deal “puts the megacompany close to its favored clients. In the past few years, Halliburton's business has shifted to places like Kuwait, Russia, Libya, Australia, Vietnam, and west and central Africa, places where business practices are more elastic than in America” (which, in this era of rampant, taxpayer-underwritten crony capitalism, is saying quite a bit).

While working as a politically connected rainmaker for Halliburton in the mid-1990s, Dick Cheney “helped Halliburton establish its close ties to the oil-rich family governments of Saudi Arabia, Kuwait, Qatar, the United Arab Emirates, and others,” concludes Ibrahim. “And, once Halliburton is no longer subject to American laws, there are many billions to be made in Iran, which needs American expertise to boost its oil production.”

There are additional billions to be made on the wars that are planned for the region, as well – and the established relationship between Halliburton and Bout suggests that this might be the most potent selling point for the move to Dubai.

In late 2005, Newsweek, the Los Angeles Times, and several other news outlets reported that air cargo operators working as fronts for Bout were hired to supply US troops in Iraq; one of Bout's very lucrative taxpayer-underwritten subcontracting deals was with Kellogg, Brown & Root, at the time a subsidiary of Halliburton. (It has since been spun off as a separate entity called KBR.)

The US media was beaten to this story by Le Monde, which reported on May 14, 2004 that Bout's planes, “flying under the name of [the] airline company British Gulf, [which is] likely to disappear as fast as it was created, are assuring `transport of materiel' for the American army in Iraq.”

Washington turned to Bout's air carriers because “its crews are `accustomed to land in any kind of war zone without having a fit. And if one of their planes is shot down, there's no risk of American pilots' bodies being dragged through the streets.'” A Belgian investigator reported that Bout had offered similar services to Washington in Afghanistan by ferrying arms to the Northern Alliance.

Despite the fact that the UN has “banned” Bout from international travel, the world body made use of his air fleet to transport blue berets into conflicts in Africa and East Timor.

As I pointed out a year ago, this is an old story: The poison and the antidote that are manufactured in the same factory; the fireman who moonlights as an arsonist; the arms merchant who supplies both sides in a conflict.

Bout profits handsomely from sowing wars; Halliburton, which specializes in “reconstruction,” profits from the harvest phase of those demonic undertakings. The fact that Bout and Halliburton have converged in Dubai suggests that they plan to be working opposite ends of Middle Eastern killing fields for years or decades to come.

Mr. Grigg is editor-at-large for The Right Source media enterprises.

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