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- <text id=90TT3308>
- <title>
- Dec. 10, 1990: Of Cluster Bombs And Kiwis
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1990
- Dec. 10, 1990 What War Would Be Like
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- BUSINESS, Page 71
- Of Cluster Bombs and Kiwis
- </hdr>
- <body>
- <p>Meet one of Saddam's favorite arms dealers: Carlos Cardoen
- </p>
- <p>By MICHAEL S. SERRILL--Reported by Raul Sohr/Santiago
- </p>
- <p> When war broke out between Iraq and Iran in 1980, Carlos
- Cardoen, a small-scale Chilean arms manufacturer, was quick off
- the mark: he flew to Baghdad in search of a deal. Because he
- had no contacts in the Iraqi government, "nobody would even see
- me," he recalls. "So I just left my brochures and went home."
- </p>
- <p> The brochures apparently made the sale for him. Sometime
- later, Cardoen was contacted by Iraqi army officers, who were
- interested in one of the weapons listed in his sales kit: the
- cluster bomb, a destructive antipersonnel device that scatters
- tiny bomblets over a wide area. The weapon was ideal for Iraq's
- relatively unskilled air force, especially after Iran began
- attacking Iraqi positions with human waves of fanatical young
- fighters.
- </p>
- <p> Since the early 1980s, Cardoen has sold Iraq thousands of
- cluster bombs and other explosives, as well as such
- weapons-related technology as computer-operated metal lathes.
- Iraq in turn has helped make Cardoen, 48, one of the richest
- men in Chile; his firm, Cardoen Industries, has grossed $400
- million from the cluster bombs alone. No wonder that until
- recently, Cardoen kept President Saddam Hussein's portrait
- hanging in a place of honor in his Santiago factory.
- </p>
- <p> Cardoen makes no apologies for helping arm Iraqi soldiers,
- even though the cluster-bomb factory he built on the outskirts
- of Baghdad is no doubt spitting out weapons that might be used
- against the multinational alliance arrayed against Saddam in
- the Persian Gulf. Cardoen rationalizes his position by
- explaining that he began selling Saddam arms "when Iraq was
- considered a friend of the West who was fighting the Ayatullah
- </p>
- <p> Because of Iraq's invasion of Kuwait, Cardoen stands to lose
- millions. Since Chile is honoring the embargo against Baghdad,
- he was forced to cut off his lucrative contracts, the latest
- of which was for a $60 million plant in Iraq designed to
- produce fuses for bombs, artillery shells and rockets. The 31
- Cardoen engineers who were working on the project have returned
- to Chile; it is not clear when, if ever, Cardoen will be paid.
- Cardoen also suffered a blow when U.S. officials refused to
- certify as airworthy his military adaptation of the Bell 206
- helicopter, a move he attributes to "political reasons."
- </p>
- <p> No one who knows the shrewd and innovative Chilean
- entrepreneur, however, expects the loss of the Iraqi account
- to set him back for long. With a Ph.D. in metallurgical
- engineering from the University of Utah, Cardoen first worked
- in the U.S. and Chile as a mining engineer. He founded the
- company that bears his name in 1977, after Chile's former
- President, General Augusto Pinochet, whose repressive government
- was the object of an international arms-sales boycott, asked
- local companies to fill the gap. Though arms manufacture has
- been Cardoen's main business ever since, he also deals in
- industrial explosives, real estate, cattle, rental cars and
- aircraft. He owns a small publishing house and a large
- kiwifruit orchard. He is nothing if not flexible in his
- dealings: Saddam paid for some of his weapons with oil, which
- Cardoen sold on the spot market.
- </p>
- <p> Having built his business by catering to the needs of
- renegade regimes like Chile's and Iraq's, Cardoen has no qualms
- about dealing with other pariahs. He has helped South African
- arms companies circumvent a global embargo by putting MADE IN
- CHILE labels on some of their weapons as part of co-production
- deals. His most recent customer for cluster bombs has been the
- repressive regime of Mengistu Haile Mariam in Ethiopia. In
- September 1989 Cardoen received his government's permission to
- sell Ethiopia up to 1,658 of the devices, at $7,000 apiece; the
- bombs have reportedly been used against civilians in separatist
- Eritrea.
- </p>
- <p> The Ethiopian deal was arranged, Cardoen says, through
- "third parties," whom he does not name but who have been
- identified by one of his employees as Israelis. Rumors have
- been circulating for months in Washington and the Middle East
- that Israel provided cluster bombs and other military aid to
- Mengistu in exchange for exit visas for Ethiopian Jews.
- Jerusalem, however, vehemently denies any involvement in
- Cardoen's Ethiopian deal.
- </p>
- <p> The Chilean's latest venture has alarmed his country's
- neighbors. He admits that he is experimenting with fuel-air
- explosive bombs, which release and then detonate a vapor cloud
- of fuel. The F.A.E. has been called the "poor man's atom bomb"
- because of the powerful explosion it generates. After it became
- known that Cardoen had helped arrange an F.A.E. test in the
- Atacama Desert in northern Chile three months ago, protesters
- in Bolivia, Peru and Argentina charged that Chile's production
- of such a terrifying weapon could set off a regional arms race.
- </p>
- <p> The F.A.E. controversy raised new calls by critics in Chile
- for a government crackdown on Cardoen's operations. The Defense
- Ministry has stopped the sale of weaponry to Ethiopia but has
- taken no other action. "Our arms-control law is designed to
- cover domestic weapons use," says Defense Minister Patricio
- Rojas. "It doesn't cover Chilean arms exports." The fact is
- that Cardoen and the post-Pinochet government are quite
- comfortable with each other. Cardoen contributed $1 million to
- President Patricio Aylwin's election campaign last year and
- large sums to several important congressional candidates.
- </p>
- <p> Whatever the criticism, Cardoen takes a hard-nosed view of
- his business dealings. "I don't know of any good weapons," he
- once told an interviewer. "The weapons shouldn't exist. The
- problem is the human beings who use them."
- </p>
-
- </body>
- </article>
- </text>
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