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American Morning
Interview with Lawrence Korb
Aired December 03, 2002 - 09:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Interesting report expected out this morning from Saudi Arabia's government. They plan to outline what it has done, and what it plans to do to fight terror. It comes after an accusation about Saudi money being passed to 9/11 hijackers.
Joining us to talk about the Saudis counter-offensive, and what it is going to mean to Saudi relations with the U.S., Lawrence Korb, former assistant secretary of Defense -- good morning, thanks for being with us.
LAWRENCE KORB, FORMER ASSISTANT SECRETARY OF DEFENSE: Good morning, nice to be with you.
KAGAN: How significant do you expect this report to be?
KORB: Well, I don't think it will be very significant, because people who don't believe the Saudis are doing enough will point out the fact that they've only stopped about $5 million of the money going. People who want us to have good relations with the Saudis think they're doing enough. They will say, see how much they have done, because they don't have taxes and it's hard for them to track the money.
KAGAN: So people who have their point of view are going to stick to that, you think. Want to go on some of those points you just touched on.
First of all, some of the money that is flowing through the charities. Hard to track, they don't pay taxes, so they don't get audited that way, and a lot of the payments go to these charities in the form of cash. So how do you track where the money goes?
KORB: Well, it's very, very difficult to do, but what the Saudis need to do, if they were really sincere about it, is to crack down on these charities, and do much more, and that has really been the problem.
I think they'll say today, Well, we've done some things, but we really have to lean on them. The other thing that has to happen, is U.S. government doesn't have anybody in charge of this, and the Saudis, I think, have a point, and say we get all different directions from this department and that department. The president needs a special assistant...
KAGAN: Just to work with Saudis?
KORB: No, just to work on this issue, which is to dry up the support of terror, the financial support of terrorism.
Since September 11, we stopped a little over $100 million, about five of that has been Saudis', but much more needs to be done, and part of it is the disarray in the U.S. government, and we also need an international group as part of the G-7, which is the meeting of all of the major economic powers that really rides hard (ph) on this.
KAGAN: Want to look at one of those numbers you brought up, the Saudis point out that they have frozen 33 bank accounts, $5.6 million. I mean, come on, that's like the change in one person's wallet.
KORB: Well, what they're trying to do is they're trying to counteract the bad publicity they got over the wife of the Saudi ambassador having given money that may have ended up. And really, that is not the main thing, but that's something that I think has got people's attention, and said Hey, wait a second, we need to do more, and we also know there is a report waiting to go to President Bush by his own people that say we are not doing enough.
KAGAN: You say the U.S. government not doing enough, but when you look at what the Saudis say they are going to put in place, I think from our standard, shocking what has not been there. They are going to have audit mechanisms, financial controls. They are going to set up a government agency to look at this for the first time. They haven't even had that.
KORB: That's right. And what has -- see, this is always our problem with the Saudis. They'll do enough to keep you from leaning too hard on them, but not enough to deal with the problem, but we're too dependent on them for energy, and so they can play that card, so we don't want to lean too hard on them. We also need their support if we want to go to war in Iraq, and they know that. So they'll do what they have to do to keep on our good side, but not enough to antagonize their own people.
KAGAN: So it's a continuation of how the relationship has gone between the U.S. and the Saudis.
KORB: Very definitely.
KAGAN: Why do they care so badly, then, if they know how badly the U.S. needs Saudi Arabia, why put all this effort into this PR effort?
KORB: Well, because they need us because we provide them protection. After all, if it wasn't for us, Saddam Hussein probably would have gone and conquered Saudi Arabia, the Soviets might have done it during the Cold War.
So they need us for protection, we need their oil, and so we have this love-hate relationship where we do things, and we don't go as hard as we might because we don't want to lose their support, and we're not their only constituency. They are spiritual leaders of the Muslim world, and they are trying to keep those folks happy.
KAGAN: Want to end this on that protection note. They are going to come out, they are going to work on this PR effort, they are going to work on the charities, but they are not going to go so far as to say to the U.S., you can do whatever you need in terms of your military effort in the Middle East?
KORB: Oh, very definitely. I mean, they are basically -- you have seen the interview on CNN, are they going to help us or are they not? They'll wait to the last minute to decide whether to help us if we do go into Iraq.
KAGAN: And won't that indeed be the thing that will sell Americans on just how friendly the Saudis are?
KORB: Well, very definitely. If they don't provide the support that we need for that, it really will hurt them in this country, because without that support, more men and women will die if there's a war against Iraq.
KAGAN: Lawrence Korb, we will be looking forward to the statement to see if, indeed, as you predict, not a lot in there later today. Thanks for your insight.
KORB: Nice to be with you.
KAGAN: Appreciate it.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired December 3, 2002 - 09:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Interesting report expected out this morning from Saudi Arabia's government. They plan to outline what it has done, and what it plans to do to fight terror. It comes after an accusation about Saudi money being passed to 9/11 hijackers.
Joining us to talk about the Saudis counter-offensive, and what it is going to mean to Saudi relations with the U.S., Lawrence Korb, former assistant secretary of Defense -- good morning, thanks for being with us.
LAWRENCE KORB, FORMER ASSISTANT SECRETARY OF DEFENSE: Good morning, nice to be with you.
KAGAN: How significant do you expect this report to be?
KORB: Well, I don't think it will be very significant, because people who don't believe the Saudis are doing enough will point out the fact that they've only stopped about $5 million of the money going. People who want us to have good relations with the Saudis think they're doing enough. They will say, see how much they have done, because they don't have taxes and it's hard for them to track the money.
KAGAN: So people who have their point of view are going to stick to that, you think. Want to go on some of those points you just touched on.
First of all, some of the money that is flowing through the charities. Hard to track, they don't pay taxes, so they don't get audited that way, and a lot of the payments go to these charities in the form of cash. So how do you track where the money goes?
KORB: Well, it's very, very difficult to do, but what the Saudis need to do, if they were really sincere about it, is to crack down on these charities, and do much more, and that has really been the problem.
I think they'll say today, Well, we've done some things, but we really have to lean on them. The other thing that has to happen, is U.S. government doesn't have anybody in charge of this, and the Saudis, I think, have a point, and say we get all different directions from this department and that department. The president needs a special assistant...
KAGAN: Just to work with Saudis?
KORB: No, just to work on this issue, which is to dry up the support of terror, the financial support of terrorism.
Since September 11, we stopped a little over $100 million, about five of that has been Saudis', but much more needs to be done, and part of it is the disarray in the U.S. government, and we also need an international group as part of the G-7, which is the meeting of all of the major economic powers that really rides hard (ph) on this.
KAGAN: Want to look at one of those numbers you brought up, the Saudis point out that they have frozen 33 bank accounts, $5.6 million. I mean, come on, that's like the change in one person's wallet.
KORB: Well, what they're trying to do is they're trying to counteract the bad publicity they got over the wife of the Saudi ambassador having given money that may have ended up. And really, that is not the main thing, but that's something that I think has got people's attention, and said Hey, wait a second, we need to do more, and we also know there is a report waiting to go to President Bush by his own people that say we are not doing enough.
KAGAN: You say the U.S. government not doing enough, but when you look at what the Saudis say they are going to put in place, I think from our standard, shocking what has not been there. They are going to have audit mechanisms, financial controls. They are going to set up a government agency to look at this for the first time. They haven't even had that.
KORB: That's right. And what has -- see, this is always our problem with the Saudis. They'll do enough to keep you from leaning too hard on them, but not enough to deal with the problem, but we're too dependent on them for energy, and so they can play that card, so we don't want to lean too hard on them. We also need their support if we want to go to war in Iraq, and they know that. So they'll do what they have to do to keep on our good side, but not enough to antagonize their own people.
KAGAN: So it's a continuation of how the relationship has gone between the U.S. and the Saudis.
KORB: Very definitely.
KAGAN: Why do they care so badly, then, if they know how badly the U.S. needs Saudi Arabia, why put all this effort into this PR effort?
KORB: Well, because they need us because we provide them protection. After all, if it wasn't for us, Saddam Hussein probably would have gone and conquered Saudi Arabia, the Soviets might have done it during the Cold War.
So they need us for protection, we need their oil, and so we have this love-hate relationship where we do things, and we don't go as hard as we might because we don't want to lose their support, and we're not their only constituency. They are spiritual leaders of the Muslim world, and they are trying to keep those folks happy.
KAGAN: Want to end this on that protection note. They are going to come out, they are going to work on this PR effort, they are going to work on the charities, but they are not going to go so far as to say to the U.S., you can do whatever you need in terms of your military effort in the Middle East?
KORB: Oh, very definitely. I mean, they are basically -- you have seen the interview on CNN, are they going to help us or are they not? They'll wait to the last minute to decide whether to help us if we do go into Iraq.
KAGAN: And won't that indeed be the thing that will sell Americans on just how friendly the Saudis are?
KORB: Well, very definitely. If they don't provide the support that we need for that, it really will hurt them in this country, because without that support, more men and women will die if there's a war against Iraq.
KAGAN: Lawrence Korb, we will be looking forward to the statement to see if, indeed, as you predict, not a lot in there later today. Thanks for your insight.
KORB: Nice to be with you.
KAGAN: Appreciate it.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
