Clearstream Blues, Japanese Connection - Villepin Chirac Update

by afew
Sat May 13th, 2006 at 09:45:32 AM EST

Friday's Le Monde rolls out the latest revelations in the Clearstream Affair, this time pinning responsibility closer than ever to Jacques Chirac.

Here on the right -- in an old photo from his James Bond days, for this man is now in retirement after a career as a top figure in military intelligence -- is the spy from whom the damaging data flow, Philippe Rondot. As a special adviser, with the rank of general, to the Minister of Defence, Rondot was several times called on to carry out delicate inquiries in the upper spheres of power. Recently he was questioned by a magistrate investigating the use of Clearstream "material" to smear prominent figures, among them Nicolas Sarkozy. His testimony was leaked. So were the personal notes he took while working on the Clearstream Affair. These are the sources that keep on giving damning evidence against Prime Minister Dominique de Villepin and President Jacques Chirac. Rondot claims to know nothing about the leaks. That he left the MoD on bad terms last December, without even the usual little farewell drinks party, presumably has nothing to do with it.

Not that it matters. What's new?

[editor's note, by Jerome a Paris] See an update on today's news in the comments below.

Update [2006-5-14 3:49:37 by afew]: Rondot gives newspaper interview, see comments below.


Le Monde today publishes new excerpts from Rondot's notes, which were seized by the investigating magistrate Jean-Marie d'Huy. These excerpts knock holes in the explanations advanced by Villepin and Chirac concerning the parts they played in the smear. It's important to note that Rondot was an officer under the orders of the Minister of Defence, not the Foreign Minister (Villepin at the time), and only the President, as Chief of Armies, could order him to work for him and Villepin, cutting the MoD out of the loop -- which is what happened :

30 janvier 2004, il relève que la ministre de la défense "a très mal pris la décision du président que je traite en direct cette opération sans lui rendre compte". Selon la fiche de M. Rondot, cette consigne a été signifiée à Mme Alliot-Marie par M. Chirac en personne, le 28 janvier dans l'après-midi. Dès le 21 janvier, le général avait noté, pour lui-même : "Le PR voulait un traitement direct avec D de V à son seul niveau."

on the 30 January 2004, [Rondot] notes that the Minister of Defence [Michèle Alliot-Marie] "reacted very badly to the President's decision that I should handle this operation directly without reporting to her [MAM]". According to Rondot's note, this order was made known to Mme Alliot-Marie by M Chirac in person, in the afternoon of the 28th of January. Already, 21 January, Rondot had written in his notes : "The PR [President of the Republic] wanted direct processing with D de V at his level alone".

Rondot's notes make it clear that, in investigating the anonymous allegations against a list of politicians, he was working for Villepin and Chirac, and that the principal target was Sarkozy. Rondot's impression that the accusations were bogus grew, and he mentioned his doubts; he was not listened to. His notes show his rising concern that the affair could damage the President. He noted, in July 2004, that Dominique de Villepin said to him:

"Si nous apparaissons, le PR et moi, nous sautons..."

"If we become visible [in this affair], the PR and me, we're out..."

They're now so visible everything else fades into the background. The question is when and how they'll be thrown out. Villepin is pretending nothing's happening, for the moment, while Chirac must be counting the days to the end of his mandate and hoping he can hang on.

Japanese Connection

He's probably also hoping he can negotiate something to keep him out of trouble with the law once he loses his presidential status. Another investigation of Rondot's, in 2002, again directly required by Chirac in person, is boomeranging back. The President asked Rondot to find out if officers of the DGSE (intelligence service) had been digging up dirt on him with a view to helping Jospin (Socialist, then Prime Minister) win the presidential election that year.

Rondot was asked about this by Judge d'Huy, and here's the relevant piece of the magistrate's report, as published by the Canard enchaîné :

PARIS HIGH COURT............................REPORT OF WITNESS STATEMENT

Using intelligence gathered by Gilbert Flam or his colleagues, the aim was to implicate the President by means of a bank account that the President held in a Japanese bank. This account was supplied by the regular payment of a very large sum, I don't recall the exact figure, originating from a cultural foundation of which M CHIRAC was a board member. The documents you seized at my home indicate that this account was was opened at the SOWA BANK and was credited with a total sum evaluated by the DGSE as 300 million francs [€46mn]. To my knowledge, this account was opened in 1992.
I was ordered to check whether the officials of the DGSE had not attempted, without proper hierarchical authorisation, to prepare a file against the President by revealing his account in Japan.

Rondot's manner of speaking here is clear: at no time does he suggest the information about the Japanese account was false or rigged, and at no time does he use the conditional. He suggests there may have been an intention to use the intelligence against Chirac, not that it was baseless.

What do we know about the Sowa Bank?

From IOL :

Tokyo Sowa - which was founded in 1950 and took its name in 1989 - was ridiculed as "the main bank of Ginza and Akasaka," two upscale Tokyo districts known for watering holes catering to politicians and the business elite.

Tokyo Sowa Bank's former boss Shoichi Osada was known for calling himself a friend of France, throwing lavish receptions for Chirac on his frequent visits to Japan and lending money for French-oriented projects.

Osada was awarded France's prestigious Legion of Honor in 1994, nine years before he was convicted and exited the limelight.

Known for his dictatorial business style, Osada aggressively sought profits by lending for real estate deals and to consumer loan firms in the late 1980s and early 1990s, as land prices skyrocketed during the bubble economy.

But Osada, who became the president of the bank in 1969 and chairman in 1975, was criticised for opaque management and allegedly using Tokyo Sowa for personal gains.

As the Japanese economy sagged after the bubble burst in the early 1990s, the bank tried to collect its debts. But it also kept lending to firms with which Osada had personal connections, dooming it to loss and leading the government to declare it a failure in 1999.

Osada and his associates were indicted in connection with illegal moves to make the bank appear has if it had adequate capital. The court found them guilty in 2003, and Osada received a suspended sentence.

Tokyo Sowa's assets were transferred to a new bank established by US fund Lone Star and was renamed Tokyo Star Bank.

(Note in passing: Lone Star, a Texan offshore investment fund <crunch munch skitter crunch> seems to be having some problems, at least in one of its Asian investment theatres.)

From The Scotsman :

Mr Chirac has for about 50 years been a close friend of Mr Osada, who famous for his flamboyant lifestyle and his collection of about 100 Impressionist paintings.

However, little is known about their friendship, except that in 1994 Mr Chirac, who was at the time mayor of Paris, spent a night at the tycoon's luxury hotel on the Japanese island of Awashima, the same year that Mr Osada was awarded the Légion d'honneur in France.

According to an article in the Japanese tabloid newspaper Shukan Gendai in 1999, Mr Osada also provided a young Japanese actress as company for Mr Chirac during his stay on Awashima.
(Thanks to tuasfait for the Awashima photo)

The Canard enchaîné reports that Chirac has visited Japan around fifty times over the past years. Rumours award him a secret mistress and child in the country. Quite officially, and no rumour involved, he likes Sumo wrestling. He must like it a lot ;)

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Le Canard Enchainé is always extremely careful when they publish such news, and they usually do so only when they have hard proof.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Fri May 12th, 2006 at 02:36:00 PM EST
Yes. Note that the sources given by the Canard and Le Monde are very full leaks of photocopied documents from the office of the investigating magistrate. Solid stuff.


When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Sat May 13th, 2006 at 08:18:37 AM EST
[ Parent ]
What's amazing with the Canard is that they don't even need to infiltrate, go undercover, do private investigations ... people just send them all these documents. It's great that a newspaper has reached such a degree of notoriety that people would do that.
by Alex in Toulouse on Sat May 13th, 2006 at 09:01:23 AM EST
[ Parent ]
In English, we have a word for that.

Seymour Hersch.

by desmoulins (gsb6@lycos.com) on Sat May 13th, 2006 at 07:48:42 PM EST
[ Parent ]
Quite officially, and no rumour involved, he likes Sumo wrestling.

I saw him getting standing ovation when coming to a match, on Eurosport.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Fri May 12th, 2006 at 04:13:06 PM EST
Sarkozy has just announced this morning that he would remain in the government for now, not wanting "to add a crisis to the crisis".

I think that's the smart choice for him, as I seriously doubt that this government is going to last for much longer. (Le Canard tells about how Villepin and Chirac hope to hold out until early June and the World Cup, when attention will be diverted to other things...)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Sat May 13th, 2006 at 10:12:24 AM EST
In an unusual, and short, editorial on the front page, the director of Le Monde, Jean-Marie Colombani, writes that readers should not be surprised to hear about police raids at Le Monde in the coming days, as Villepin has shown, accoridng to him, that his preferred response to crises is to move the debate by targetting investigating judges and journalists and make them the issue rather than the underlying scandal.

The next few days are going to be interesting...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Sat May 13th, 2006 at 10:18:18 AM EST
Just like Bush/Rove...arrest/hassle the journalists, while the traitors continue to run the government...

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Sat May 13th, 2006 at 10:45:27 AM EST
[ Parent ]
Damn, this is getting good. Its moments like this, with democracy apparently on the line, that Colombini (in ordinary times, so pompous and self-absorbed with their "right=thinking" views on "the necessity of reforms" etc) show us that he and his paper are worth having around after all.

Ok,now the for the 64,000 Euro question -- where is Le Monde getting all these documents from? Justice? I recall Perben's name coming up once in recent weeks and wonder if there's any reason for Justice to be taking sides for or against Villepin or Sarkozy.

Investigating magistrate?

My pick is of course on Interior but thats the obvious choice. It would also devalue Le Monde's stand, if it turns out to be merely an organ of Speedy's campaign.

by desmoulins (gsb6@lycos.com) on Sat May 13th, 2006 at 07:46:52 PM EST
[ Parent ]
I believe Sarkozy (and other pols named in the Clearstream lists) is "partie civile" (this doesn't, afaik, have an equivalent in British or American law, but it means he associates himself with the action of the public prosecutor) and this gives him and his counsel the right to communication of the results of the investigation as it develops. Does this mean photocopies of the witness statements, for example? I'm not sure.

Also, I'm not sure it's entirely in Sarko's interest to stoke up the fires right now. He might get burned along with the intended victims...

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Sun May 14th, 2006 at 03:41:48 AM EST
[ Parent ]
And Rondot, who was supposed to be interrogated again by the judges this week, now is asking for the "témoin assisté" statute (some kind of "investigated witness" statute, which allows him to get access to the judicial file, creates some formal rights during interrogations, but does not mean that he is suspected of anything). That might be a delaying tactic, or it may be a recognition that there are hopeless contradictions in what he's been saying.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Sun May 14th, 2006 at 05:05:03 AM EST
[ Parent ]
He may have been behind the documents passed on to Le Monde, but he certainly has to worry about getting caught in the whole thing. You do note some backpedalling on his side in recent days.

But then again, let's not forget this was all started by the vicious wars in the armaments world - the nasty fights between the Matra-Lagardère (now part owner of EADS) and Thomson (now Thales), and the in-fighting inside EADS for the top job. A number of people involved in that may have the goods and the motivation (revenge, etc...) to get them out, via Le Monde or other outlets.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Sun May 14th, 2006 at 05:10:07 AM EST
[ Parent ]
My feeling about it is that the original use of the Clearstream listings (passed on to Judge van Ruymbeke, we now know, after negotiation with J-L Gergorin) was part of the internal EADS battle. But that it may have appeared to Villepin and Chirac that the listings could be used obliquely, ie to launch an investigative smear against Sarkozy. Hence the order -- under the direct authority of the President -- to Rondot to carry out a secret enquiry.

What matters today is events from that order on, because that was the moment V&C jumped up to their necks into this business.

(Which doesn't rule out that Chirac may also have been party to the original EADS shenanigans).

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Sun May 14th, 2006 at 07:52:51 AM EST
[ Parent ]
No riots this summer.  The French will all be too busy chatting about this scandal to care about much else.
by LondonYank (LondonYank (at) aol.com) on Sat May 13th, 2006 at 11:25:53 AM EST
Sarkozy could arrange to have the French football team's food spiked to make sure that fewer people will be watching the world cup and thus concentrating on this scandal that makes him look good. I mean it's nothing the secret services can't handle, they may already have done it in 1998 against Brazil, and anyhow I have a feeling it's a pretty common practice in the world of football.
by Alex in Toulouse on Sat May 13th, 2006 at 11:36:15 AM EST
[ Parent ]
This is a great article. Sorry, I don't yet have anything much more to add.

1. Osada once seriously lobbied governments to host then G-7 summit at Awashima. To his credit, Prime Minister Hahimoto stayed at Awashima. Osada used a prominent pro-American lobbyist on the American front. (Incidentally, this lobbyist has been trying to enlist Japanese companies in the Iraqi "reconstruction" without much success.)

2. We didn't have a Foreign Corrupt Practices Act equivalent during the early 1990s, so I doubt if the prosecution who failed to send Osada to jail (a suspended sentence for a minor offense) would have investigated his French connection seriously.

I will become a patissier, God willing.

by tuasfait on Sat May 13th, 2006 at 11:26:39 AM EST
The Journal du Dimanche publishes this morning an interview with General Rondot. It's not available online, but the Nouvel Obs has a summary up here. Basically and unsurprisingly, it's a CYA exercise. Excerpts:

"Il n'a jamais été question d'enquêter sur Nicolas Sarkozy ou sur d'autres hommes politiques dont les noms sont apparus sur les listings"

There was never any question of investigating Nicolas Sarkozy or other politicians whose names appeared in the listings

Questionné sur l'existence d'un "compte caché" de Jacques Chirac au Japon, il répond : "c'est une non-affaire".

Questioned about the existence of a 'hidden account' held by Jacques Chirac in Japan, he replies: "It's a non-affair"

Le général Rondot tient, par ailleurs, Nicolas Sarkozy pour "une victime, car son nom apparaît dans une liste, tardivement". "Il s'agit d'une calomnie. Mais de là à dire qu'il était une cible, je n'en sais rien", dit-il encore.

General Rondot takes Nicolas Sarkozy for "a victim, because his name appears in a list late in the game". "It's a smear. But to go from there to saying he was a target, I don't know at all."

"Je n'ai subi aucune pression, et n'ai eu aucun contact avec l'Elysée, Matignon ou le ministère de la Défense au cours des dernières semaines".

I have not been pressured, and have had no contact with the Elysee, Matignon, or the Ministry of Defence during the last weeks"



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Sun May 14th, 2006 at 04:03:15 AM EST
As you point out above, it's not CYA, it's CMA (cover many asses)... Probably too many.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Sun May 14th, 2006 at 05:01:32 AM EST
[ Parent ]
Yes, it seems very hard to cover the asses of Chirac, Villepin, MAM, Sarkozy, and himself, all in one operation. Or, to use a French metaphor, he'll need an enormous umbrella.

When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Sun May 14th, 2006 at 07:34:08 AM EST
[ Parent ]
French scandals are wonderful things. Offshore accounts, seedy businessmen, secret agents, weapon deals etc etc ad infinitum.

The current scandal we have in Ultima Thule is not very exciting, and the low quality of Swedish scandals is even more apparent when major tabloid Aftonbladet called it "the scandal of the decade".

Anyway, this is what happened. During the tsunami disaster in which 500 Swedes were killed there was a lot of bungling of the government rescue effort. The PM's right hand Lars Danielsson, allegedly was at Rosenbad (government HQ) running things during the disaster morning. He says he called cabinet secretary Hans Dahlgren (second in command) at the foreign department three times during that day, asking if the foreign department (who were handling the crisis) needed help, which they according to Danielsson said they didn't need. Anyway, they did need lots of help as everything was total chaos at the foreign department, and they got none.

Now for the exciting part. Hans Dahlgren at foreign department is adamant, he didn't receive any calls, he is not to blame for the bungling. And he has telephone recods from the telephone company to prove it.

So either Danielsson is lying or Dahlgren and the telephone company are lying. Obviously Danielsson (who  in practice is the second most powerful man in Sweden) is lying.

Why is he lying? Wasn't he at Rosenbad? The PM has decided that no one must check the security guard records of who enter and exit the building to see if Danielsson were at his job that fateful day, as this would be "a threat to national security". :D

Then were where Danielsson? Every on who knows anything or can read a political blog knows it, but all the mainstream media refuse to say anything, just publishing small tantalising hints who only the people who already know understand.

He was with his mistress, Helen Edouard! This Edouard woman is apparently his personal assistant, and has strangely followed him on dozens of luxurious travels in the government jet ($$$!). She has also accompanied him on very expensive restaurants and hotels (I guess they saved some money there by sharing bed) all over the world. Everything payed by the Swedish taxpayer.

Heads will roll, and as there is an election this fall, things are looking bleak for the social democrats (as this is only one, albeit the worst, in a series of political scandals).

Anyway, this would ot even qualify as a scandal in France, would it?

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Sun May 14th, 2006 at 12:09:59 PM EST


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