WikiLeaks Exposes Boeing’s Secret Sales Force: U.S. Diplomats

[IScreamSundays]

Source: New York Magazine

Hundreds of cables from WikiLeaks reveal that Boeing had a leg up in its corporate rivalry with European competitor Airbus in the form of a sales force of U.S. diplomats that went up to the highest level of government. Like other WikiLeaks cables, these don't offer much of a surprise. (The U.S. tips the scales for American companies abroad? Why we never!) But they do unveil the extent to which diplomats act as de facto marketers, sweetening deals with letters from the president and state visits and a willingness to trick out planes. After all, big-ticket items like commercial jets, where a deal can be worth $10 billion, are key to reducing America's trade gaps with imports from the developing world. A Boeing spokesperson said the diplomatic perks were a way to level "the playing field," considering European subsidies to Airbus, but the cables show the extent of politicking the U.S. was willing to engage in to make sure Airbus lost a deal. Lest you think the diplomats are entirely without scruples, there were limits to what Boeing and its government sales force was willing to do. For example they turned down Turkey's and Tanzania's requests to hire "agents" as a way to mask bribes to access top officials. In case you're keeping track, that's an a-okay on making Turkey think its astronaut could sit in on a NASA space flight in order to get Turkish Airlines to order twenty Boeing planes, but a sorry, we just can't to offering "commissions" to an "agent."

Read more: http://nymag.com/daily/intel/2011/01/wikileaks_exposes_boeings_secr.html

[IScreamSundays]

1. U.S. envoys hawking for Boeing

WASHINGTON – Saudi Arabia's king wanted the U.S. to outfit his personal jet with the same high-tech devices as Air Force One. Turkey's president wanted the Obama administration to let a Turkish astronaut sit in on a NASA spaceflight.

Each government leader had one thing in common: He was trying to decide whether to buy billions of dollars' worth of commercial jets from Boeing or European competitor Airbus.

And U.S. diplomats were acting like marketing agents, offering deals to heads of state and airline executives whose decisions could be influenced by price, performance and – as with all finicky customers with plenty to spend – perks.

In the high-stakes, international trading bazaar for large commercial jets, tens of billions of dollars and hundreds of thousands of high-paying jobs are on the line.

http://www.dallasnews.com/sharedcontent/dws/news/world/stories/DN-wikileaks_03int.ART.State.Edition1.2a0f4b3.html

[eleny]

2. I know this is a risky question but do you think their actions would result in American jobs?

Frankly, I wouldn't care if a diplomat brokered a deal to get Boeing to "trick out" a king's airplane in order to help get Boeing a huge contract and put Americans to work. And if the Turkish astronaut was a braniac who was fully qualified then I ask, what's the harm?

There doesn't appear to be dirty dealings here that result in death from putting poorly manufactured planes in the air or some other such rotten business. Seems to me that getting a corporation the edge in competition that results in Americans keeping their jobs, I can't see too much that worries me.

But it all hinges on American jobs, imo.

[EFerrari]

23. Whenever the corruption of the defense industry becomes an issue,

that's the point they take out, think of the jobs.

The truth is that the industry is a sewer, involving layers and layers of bribes to domestic and foreign officials and the use of public money to create private wealth.

So it's not that jobs are bad or that our government shouldn't promote our economic interests but that those jobs are very expensive in terms of our tax money and it isn't exactly OUR interests that being represented.

[OregonBlue]

3. Boeing planes are made in America. Airbus is government subsidized. I just can't get too angry about

this one. For everyone complaining that we don't have a manufacturing base any more, shouldn't you be glad our diplomats are trying to keep one of our biggest manufacturers in business? Sure it's sleazy but we are having to compete with a manufacturer who has unlimited backing by their governments and therefore has unfair advantage.

[eleny]

4. I would consider it sleazy if our diplomats worked for one American company over another

That kind of behavior is cronyism and would cross my line in the sand. But isn't Boeing about our only airplane manufacturer? If that's the case I'm comfortable with this situation on the face of it because of the jobs aspect.

[OregonBlue]

5. I agree. We can't complain about our diplomats trying to grease the wheels for one of our few

remaining big manufacturers. They were trying to help Boeing compete against Airbus which is a government backed manufacturer and has unfair advantage. So I guess I would be pissed if our government wasn't trying to level the playing field.

[eleny]

6. This news of "greasing wheels" was actually a pleasant surprise

[midnight]

36. Something to consider..........

When the Iraq was was about to begin, Bunny Greenhouse alone challenged the legality of awarding no-bid, no-compete, cost plus contract to Haliburton. The Army swiftly retaliated and she lost her career and position as the Army Corps of Engineers top procurement executive. Today Bunny spoke out against S.732, the Senate's version of a Whistleblower Enhancement Act, asking the House to ensure that the "poisons pills packed into S.732" be removed instead of passing the bill in its current state. Bunny would be one of the first beneficiaries if a whistleblower enhancement bill were passed because she can still bring that claim. But Bunny realizes that "the Senate's version of this bill treats whistleblowers as second-class citizens, rolls back some existing protections and leaves national security whistleblowers out in the cold." Congress needs to deliver a meaningful whistleblower bill Bunny Greenhouse and all of the nation's federal workforce deserve - one that doesn't treat whistlebowers as second-class citizens or that rolls-back existing protections.
You can join Bunny Greenhouse in taking action to urge the House of Representatives to correct the flaws in S. 372.http://www.whistleblowersblog.org/2010/12/articles/whistleblowers-government-empl/terrorism/bunny-greenhouse-urges-correction-of-s-372/

[Hawkowl]

9. The 787 is not American made

Components are manufactured all over the world and sent to the US for final assembly. Even the technologically critical wing was awarded to China for the first time. This is the primary reason Boeing's 787 has been plagued by delays, cost overruns, and poor workmanship.

[liberation]

16. I think you meant the 787, the 777 is mostly made in Japan.

A lot of the 787 delays are not as much due to Chinese stuff, but also due to Boeing subcontracting large portions to Vought Aircraft and other non-union shops in order to undermine Boeing unionized labor force. Vought et al have had an awful track record in this project, not only missing quality targets but delivering their crap with immense delays. Yay for "free market"!!!

[Hawkowl]

17. Doh!!!

You're right! Can't believe I made that mistake.

[Sen. Walter Sobchak]

11. The 787 is the most highly subsidized aerospace project in history

and unlike Airbus most of the 787 subsidies are explicitly illegal, Boeing is further backed by the EXIM bank that will finance Boeing customers no commercial lender would touch.

Both are filthy,

[OregonBlue]

29. Boeing is also 150,000 motly UNION jobs. That's what our diplomats should be promoting.

[liberation]

14. Boeing is also government subsidized

remove their military and space contracts, and watch Boeing squirm. ;-)

[OregonBlue]

28. Boeing is also good paying UNION jobs. You have a problem with that?

[liberation]

37. No I don't

However, I have no clue why you need to bring up your problems with reading and comprehension, but whatever...

[jberryhill]

20. What's sleazy about it?

The State Department, promoting US interests abroad! The horror!

[OregonBlue]

27. LOL.. You nailed it. Not only that, those are UNION jobs. Oh the horror!!

[MineralMan]

7. Actually, it's part of their job. Every Embassy Has

people involved in stimulating imports of US products. Why is that surprising or in any way alarming?

We need to boost our exports.

[JDPriestly]

13. The problem is that specific companies are given a boost by our

diplomatic corps while others are not.

That's the problem. There is a lack of equal protection.

Another problem is the fact that taxpayers are spending a lot of money on this. How much money did Boeing pay in taxes last year? How does that compare to what a middle class single woman or man pays in terms of percentage of earnings?

If all American companies get the same representation by our diplomatic corps overseas and if the representation is very open, there is no problem.

But if American taxes are being paid to help out specific businesses, then I have a problem'

Depending on the extent of the assistance, the promotion of specific companies by members of our diplomatic corps could be viewed as either a sort of employment (depending on whether the diplomats or their bosses get campaign donations or gifts or other things that might be considered remuneration) or a sort of investment in the company (which seems like socialism for the rich, once again).

And if our diplomatic corps is helping out specific companies in their marketing overseas, then what is the Chamber of Commerce doing overseas? What about the companies funding their own trade outreach? Why not do it openly and just allow companies (any company) to set up business in our embassies? We could charge them rent and fund our embassies that way.

[MineralMan]

18. And how many aircraft manufacturers are there in the US,

that build commercial planes? I guess I don't see your point. In general, trade missions in our embassies promote entire classes of products, such as food, etc. Again, that's their job.

[Sen. Walter Sobchak]

24. If they don't their pretty oblivious,

If an American manufacture isn't aware of the services available to them through the US Trade and Development Agency and International Trade Administration they need to read their mail more often, the agencies are top-notch. Even the Bush appointees were pretty good. I have dealt with both intimately for years.

And they already do that, their called Commercial Services Offices,

[Robb]

8. Well, good. nt

[Sen. Walter Sobchak]

10. François Mitterrand was the best salesmen Airbus ever had

This isn't really unusual,

[JDPriestly]

12. Seems like this kind of direct marketing on behalf of specific companies

is a sort of subsidy. Talk about socialism. Apparently, socialism that benefits the corporations and their rich CEOs and major stockholders is OK. It's just the socialism that benefits ordinary people that is objectionable.

[Robb]

15. 150,000 US employees might think differently. nt

[EFerrari]

19. Yup. And after this kind of lobbying, should an issue arise

between Boeing and the public, it's hard to see the government siding with us.

[jberryhill]

22. Ever visit reality?

http://www.washingtonpost.com/wp-dyn/content/article/2006/04/08/AR2006040801450.html

Boeing Fined $15 Million for a Chip
U.S. Says Prohibited Device Was in Planes Sold to China

http://www.corpwatch.org/article.php?id=13582

US: Boeing to Pay Fine of $615 Million

http://seattletimes.nwsource.com/html/localnews/2011679013_apcapollutionfine.html

Regional water quality regulators have fined Boeing Co. $500,000 for contaminated stormwater runoff at a former nuclear and rocket engine testing facility in eastern Ventura County.

[Bragi]

21. I'm glad this is now out in the open

I see no reason why the release of this cable would harm U.S interests abroad. In case there were any doubters, it simply confirms that the U.S embassy promotes what it sees as U.S economic interests abroad. I think it's a good thing that it's been released.

[OregonBlue]

26. Agreed. This is a good thing. I can't believe that some here think our diplomats SHOULD NOT be

promoting U.S. companies. Especially ones that employ 150,000 mostly UNION workers. I bet those same people are the ones who keep screaming about outsourcing American jobs!!!!

[jberryhill]

31. Don't you understand?

This cable was leaked in order to expose the rampant criminality of the US.

[OregonBlue]

33. Yes, the horrors of our diplomats promoting our manufacturers!! How corrupt.

[tekisui]

25. Thank you Wikileaks!

[jwirr]

30. Free enterprise right?

[jberryhill]

34. You might find this interesting

Did you know there is an entire US government agency to do precisely this.

http://www.ustda.gov/

USTDA is an independent U.S. Government foreign assistance agency that is funded by the U.S. Congress.

Our mission, USTDA Mission Statement, is to promote economic growth in developing and middle income countries, while simultaneously helping American businesses to export their products and services, thereby creating U.S. jobs. In addition, USTDA supports U.S. policy objectives related to development and capacity building activities.

USTDA provides grant funding to overseas project sponsors for the planning of projects that support the development of modern infrastructure and an open trading system. The hallmark of USTDA development assistance has always involved building partnerships between U.S. companies and overseas project sponsors to bring proven private sector solutions to developmental challenges.

[kiranon]

32. This is as unexpected as Willie Nelson caught w/pot. n/t

[midnight]

35. No bid contracts......A way to level the playing field?

[Shanti Mama]

38. Front page here in Kathmandu today nt