Baker sought to cover-up illegal trade with Saddam's Iraq, Israeli charges

Iraq Study Group co-chair James A. Baker made two points as he testifies before the Senate Armed Services Committee on the release of the ISG report on Dec. 7 (Mike Theiler/AFP)

Issue Date: www.insightmag.com - Dec. 26-Jan.1, 2006, Posted On: 12/23/2006

Baker sought to cover-up illegal trade with Saddam's Iraq, Israeli charges

Former Secretary of State James Baker was involved in a cover-up of illegal trading by his law firm with the regime of Iraqi dictator Saddam Hussein, according to a former contractor who did work for Mr. Baker’s firm.

Mr. Baker used non-Americans to help acquire funds from Iraq in violation of the United Nations embargo and U.S. law, the former contractor said.

Nir Gouaz, an Israeli security veteran, said that in 1999 Mr. Baker's leading deputy at the law firm of Baker Botts ordered him to destroy all documents that detailed how he obtained from Iraq more than $250 million for a client.

Mr. Baker's firm has denied Mr. Gouaz's account.

But the Israeli said he has documents that could destroy Mr. Baker's reputation. He said he has been angered by Mr. Baker's attempt to press the Bush administration to impose an anti-Israeli policy in an attempt to win Arab cooperation to help stabilize Iraq. Mr. Baker, appointed by President Bush in 2003 as his envoy to recover debts from Iraq, has also co-chaired the Iraq Study Group, which on Dec. 6 issued 79 recommendations on U.S. policy in Iraq.

"When I heard the Baker recommendations, I couldn't stand the hypocrisy," said Mr. Gouaz, president of Caesar Global Securities, who worked for Mr. Baker's law firm in Washington for two years. "In his eyes, the diplomatic vision for the Middle East is actually an economic vision. A person like that wouldn't stop at anything to reap profits and dictate to Israel how to behave."

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