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but for their own reasons were willing to push forward a policy that could only work to the
long run advantage of the United States. It is paradoxical that an Administration that was
noisy in its public anti-communist stance, and quick to point out the human cost of the
Soviet system, was also an Administration that gave a gigantic boost to Soviet military
truck capacity.
Possibly campaign contributions had something to do with it. Multina-tionals listed below
as prime contractors on Kama River were also major political contributors. However, the
significant link never explored by Congress is that Henry Kissinger, the key promoter of the
Kama River truck plant at the policy level, was a former and long-time employee of the
Rockefeller family and the Rockefellers are the largest single shareholders in Chase
Manhattan Bank (David was then Chairman of the Board) and Chase was the lead
financier for Kama River. This is more than the much criticised "revolving door." It is
close to an arm's length relationship, i.e., the use of public policy for private ends.
Here are the corporations with major contracts at Kama River, listed with the name and
address of the Chairman of the Board in 1972.
GULF & WESTERN INDUSTRIES, INC.
1 Gulf and Western Plaza, New York NY 10023
Tel. (212) 333-7000
Chairman of the Board: Charles G. Bluhdorn
Note: Charles Bluhdorn is also a Trustee of Freedoms Foundations
at Valley Forge and Chairman of Paramount Pictures Corp.
E. W. BLISS CO. (a subsidiary of Gulf & Western)
217 Second Street NW, Canton, Ohio 44702
Tel. (216) 453-7701
Chairman of the Board: Carl E. Anderson
Note: Carl E. Anderson is also Chairman of the American-Israel
Chamber of Commerce & Industry
COMBUSTION ENGINEERING, INC.
277 Park Avenue, New York, NY 10017
Tel. (212) 826-7100
Chairman of the Board: Arthur J. Santry, Jr.
HOLCROFT AND COMPANY
12062 Market Street, Livonia, Mich. 48150
Tel. (313) 261-8410
Chairman of the Board: John A. McMann
HONEYWELL, INC.
2701 4th Avenue S., Minneapolis, Minn. 55408
Tel. (612) 332-5200
Chairman of the Board: James H. Binger
INGERSOLL MILLING MACHINE COMPANY
707 Fulton Street, Rockford, ILL 61101
Tel. (815) 963-6461
Chairman of the Board: Robert M. Gaylord
NATIONAL ENGINEERING CO.
20 N. Wacker Drive, Chicago, ILL 60606
Tel. (312) 782-6140
Chairman of the Board: Bruce L. Simpson
PULLMAN, INC.
200 S. Michigan Ave., Chicago, ILL 60604
Tel. (312) 939-4262
Chairman of the Board: W. Irving Osborne, Jr.
SWINDELL-DRESSLER CO. (Division of Pullman, Inc.)
441 Smithfield Street, Pittsburgh, PA 15222
Tel. (412) 391-4800
Chairman of the Board: Donald J. Morfee
WARNER & SWAZEY
11000 Cedar Avenue, Cleveland, Ohio 44106
Tel. (216) 431-6014
Chairman of the Board: James C. Hodge
CHASE MANHATTAN BANK
Chairman of the Board: David Rockefeller
Footnotes:
12
United States Senate, Transfer of United States High Technology to the Soviet Union and
Soviet Bloc Nations, Hearings before the Permanent Subcommittee on Investigations, 97th
Congress Second Session, May 1982, Washington, D.C., p. 263.
13
Ibid., pp. 267-8.
BACK
CHAPTER IV
Soviets Buy into the 21st Century
In most fields of technical research, development and production which I am
familiar with in the Soviet Union, the overwhelming majority of resources are
invested in military applications. as a matter of fact the Soviet industrial
capacity is so overburdened with military production that the Soviets could not
make a civilian or commercial application of certain high technology products
even if they wanted to. Former Soviet engineer, Joseph Arkov before U.S.
Senate, May 4, 1982
Every generation or so in the past two hundred years Western technology has generated a
fundamental innovation that changes the whole course of society and the economy. The
industrial revolution of the late 18th and 19th centuries was based on canals and iron.
Railroads were a fundamental innovation of the first third of the 19th century. In the late
19th century the Bessemer process enabled mass production of cheap steel. The internal
combustion engine in the 1900s began another revolution. Atomic energy in the 1940s
started the atomic age.
In the 1970s the semi-conductor was first mass produced in California. The economy of the
21st century will evolve around the silicon chip, i.e., the integrated circuit memory chip and
semi-conductor components.
No country large or small will make any progress in the late 20th century without an ability
to manufacture integrated circuits and associated devices. These are the core of the new
industrial revolution, both civilian and military, and essentially the same device is used for
both military and civilian end uses. A silicon chip is a silicon chip, except that military
quality requirements may be more strict than civilian ones.
This electronic revolution originated in Santa Clara Valley, California in the 1950s and
roughly centers around Stanford University.
Stanford is also in many ways at the core of the debate over transfer of our military
technology to the Soviet Union. Congressman Ed Zschau (Rep. Menlo Park) represents the
Silicon Valley area and is a strong proponent of more aid to the Soviets. On the other hand,
also in Silicon Valley, this author's six books critical of our technological transfers to the
Soviets originated, and three were published at the Hoover Institution, Stanford University
(See Bibliography for titles).
Silicon Valley gets its name from the essential element silicon used in integrated circuits.
An essential component of integrated circuits is the semi-conductor usually made of silicon
and linked to other components such as transistors into a single circuit. By 1971 an entire
computer could be produced on a single chip, in itself probably the most significant
industrial breakthrough since the discovery that steel could be manufactured on a large scale
from iron.
The semi-conductor revolution began in the Silicon Valley and was a challenge to the
socialist world to duplicate. This they could not do. Every single Soviet weapon system has
semi-conductor technology which originated in California and which has been bought,
stolen or acquired from the United States.
Early Soviet Electronic Acquisitions
Back in 1929 Pravda commented that without the automobile the Soviet Army would be
helpless in any future war. Western multinationals Ford Motor Company, Hercules Gear,
IBM and others helped USSR bridge the gap of the 1920s. Identical aid can be found for
electronics.
In August 1971 the U.S. Department of Defense paid $2 million to Hamilton Watch
Company for precision watchmaking equipment. Watchmaking equipment is used in
fabricating bomb and artillery shell fuses, aircraft timing gear, pinions, and similar military
components. Most Soviet watch-manufacturing equipment has been supplied from the
United States and Switzerland; in some cases the Soviets use copies of these foreign
machines.
In 1929 the old Miemza concession factory, formerly a tsarist plant, received the complete
equipment of the Ansonia Clock Company of New York, purchased for $500,000. This
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