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ImperiumWatch: The Telephone Ring

Did American telecom interests wire Honduras for a coup?

Comments (2)
Thursday, July 23, 2009

Sen. John McCain, it seems, has a career-enhancing business that involves advocating for the privatization of telecom companies in Latin America. Still unknown is whether associates of his had anything to do with the recent coup that ousted Manuel Zelaya, president of Honduras, who had opposed the privatization of the national telecom company, Hondutel. Roberto Micheletti, who replaced Zelaya, was CEO of Hondutel in the late 1990s and supported privatizing it.

If telephone interests' fingerprints were on this coup, it wouldn't be the first time. Before Salvador Allende was overthrown in Chile in 1973, International Telephone and Telegraph offered the U.S. government a million dollars to get rid of him because he wanted to nationalize Chile's phone company, 70 percent of which IT&T owned.

McCain is chairman of the International Republican Institute, a group financed with public ($78 million in 2006) and private money. It has close ties to the telecom industry. In 2007, when he was running for president, the Associated Press reported, "McCain's presidential campaign has raised at least $670,000 from 2005-06 [IRI] donors and their employees since its fundraising started last year." Those donors include AT&T, a McCain contributor since 1998; it gave the IRI $200,000 in 2006 and McCain $187,000 in 2008.

Robert-Carmona Borjas, a Venezuelan attorney who campaigned loudly for Zelaya's ouster, last fall held a class on Latin American politics at George Washington University in Washington, D. C. that featured Otto Reich, former U.S. Ambassador to Venezuela, as a speaker. Reich was a foreign policy adviser for McCain in his presidential campaign and has also worked as a lobbyist for AT&T and Bell Atlantic. His firm, Otto Reich Associates, lists as one of its missions: "Identify and secure foreign investment and privatization opportunities in Latin America."

Phoning it in: Late in 2007, asked if telecom companies should be immune from prosecution for helping the government spy on U.S. citizens, McCain told CNET News, "I am... a strong supporter of protecting the privacy of Americans." But in February, 2008, he voted not to revoke their immunity. When corporate interests were on the line, it seems, the senator hung up on that right to privacy.

Comments (2)
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I am a spokesperson for the International Republican Institute (IRI) and Ms. Krafts implication that IRI somehow has a connection to the Honduras coup is as malicious as it is false. Considering the sensitivity and the seriousness of the situation in Tegucigalpa, one would think Ms. Kraft would be more responsible in her coverage, not just of IRI but of all agencies and organizations that devote time and resources to Honduras. The bulk of IRIs programming in Honduras is concentrated on helping city governments better serve their citizens. Our program and record is very clear and transparent there. We encourage those who are interested to learn more about our governance programming at: http://www.iri.org/lac/cen_good_gov.asp. The other aspect to our program in Honduras seeks to help encourage political parties and civil society focus on substantive issues such as healthcare, roads, education and economic development. IRI stands by that work as well.
Posted by Lisa on 7.22.09 at 8:30
This has to be the sloppiest piece of reporting ever. Zeleya precipitated his removal by emmulating Chavez. The entire Honduran Legislature, Supreme Court, and military sanctioned his removal. Even his supporters are outnumbered 100 to 1. Next thing Steph will tell us the moon landings were faked and 9/11 was an inside job. Advocate, you can hire better than her.
Posted by Greg on 7.25.09 at 2:00
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