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CNN Live At Daybreak

Letters Reveal More On Relationship Between Bush, Lay

Aired February 18, 2002 - 06:42   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.
President Bush and former Enron Chairman Ken Lay were more than just nodding acquaintances, as you know, according to letters released in Texas.

Mike Rosen of our affiliate KTBC in Austin, Texas has details on that.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Ken Lay is a supporter. The last time that I saw Mr. Lay...

MIKE ROSEN, KTBC, AUSTIN, TEXAS (voice-over): Just after the Enron collapse, President Bush downplaying his relationship with company chairman Ken Lay, a relationship that, Friday, became more clear. The Texas state archives released part of the correspondence between Lay and Bush as governor. The big question, did $312,000 Lay and Enron contributed to two Bush gubernatorial campaigns by him or his company access and influence it otherwise would not have had.

(on camera): Out of the 350 pieces of paper released today, four vivid examples about the relationship between the two men, starting with personal that Bush downplayed. This letter from Bush to Ken Lay back in '97, "One of the sad things about old friends is that they seem to be getting older just like you. Laura and I value our friendship with you." Another example, Lay often asking Bush to actively support efforts to pass a bill restructuring the electric industry in Texas. Lay even characterizing it as equivalent to a $1.7 billion tax cut that Bush perhaps could take credit for in the legislative session.

Next example, Bush often asked to used his influence to do things, like asking Congressman Bill Archer, Chairman of the House Ways and Means Committee to try to push through a wind production tax credit. And then, finally, two examples of how Lay asked Bush to use his influence to talk to two prime ministers from different countries. One from Uzbekistan, the other from Romania.

TOM SMITH, TEXAS DIRECTOR, PUBLIC CITIZEN: Where Lay was building power plants.

ROSEN (voice-over): Also investigating the watch dog group Public Citizen. Tom Smith says what strikes him is that Lay felt he could call on Bush and ask him for special favors, essentially cementing deals. But he says perhaps more interesting is what's missing.

SMITH: No notes of Governor Bush on meetings with Lay. No staff minutes that would indicate what they had gotten in their conversations from lobbyists.

ROSEN: Information that could come next week with another round of documents.

(END VIDEOTAPE)

COSTELLO: And that was Mike Rosen with our affiliate KTBC in Austin.

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