Confessions of an Economic Hit Man

“It’s a huge endeavor,” he exclaimed, “taking on the Giant of the North.” He shook his head sadly. “I fear for his safety.”

Then it was time for him to leave.

“Must catch a flight to France,” he said, rising slowly and shaking my hand. He peered into my eyes. “Why don’t you write a book?” He gave me an encouraging nod. “It’s in you. But remember, make it about things that matter.” He turned and walked away. Then he stopped and came back a few steps into the restaurant.

“Don’t worry,” he said. “The general will prevail. He’ll get the Canal back.”

Torrijos did get it back. In that same year, 1977, he successfully negotiated new treaties with President Carter that transferred the Canal Zone and the Canal itself over to Panamanian control. Then the White House had to convince the U.S. Congress to ratify it. A long and arduous battle ensued. In the final tally, the Canal Treaty was ratified by a single vote. Conservatives swore revenge.

When Graham Greene’s nonfiction book Getting to Know the General came out many years later, it was dedicated, “To the friends of my friend, Omar Torrijos, in Nicaragua, El Salvador, and Panama.”⁵

CHAPTER 18. Iran’s King of Kings

Between 1975 and 1978, I frequently visited Iran. Sometimes I commuted between Latin America or Indonesia and Tehran. The Shah of Shahs (literally, “King of Kings,” his official title) presented a completely different situation from that in the other countries where we worked.

Iran was oil rich and, like Saudi Arabia, it did not need to incur debt in order to finance its ambitious list of projects. However, Iran differed significantly from Saudi Arabia in that its large population, while predominantly Middle Eastern and Muslim, was not Arabic. In addition, the country had a history of political turmoil—both internally and in its relationships with its neighbors. Therefore, we took a different approach: Washington and the business community joined forces to turn the shah into a symbol of progress.

We launched an immense effort to show the world what a strong, democratic friend of U.S. corporate and political interests could accomplish. Never mind his obviously undemocratic title or the less obvious fact of the CIA-orchestrated coup against his democratically elected premier; Washington and its European partners were determined to present the shah’s government as an alternative to those in Iraq, Libya, China, Korea, and other nations where a powerful undercurrent of anti-Americanism was surfacing.

To all appearances, the shah was a progressive friend of the under-privileged. In 1962, he ordered large private landholdings broken up and turned over to peasant owners. The following year, he inaugurated his White Revolution, which involved an extensive agenda for socioeconomic reforms. The power of OPEC grew during the 1970s, and the shah became an increasingly influential world leader. At the same time, Iran developed one of the most powerful military forces in the Muslim Middle East.¹

MAIN was involved in projects that covered most of the country, from tourist areas along the Caspian Sea in the north to secret military installations overlooking the Straits of Hormuz in the south. Once again, the focus of our work was to forecast regional development potentials and then to design electrical generating, transmission, and distribution systems that would provide the all-important energy required to fuel the industrial and commercial growth that would realize these forecasts.

I visited most of the major regions of Iran at one time or another. I followed the old caravan trail through the desert mountains, from Kirman to Bandar ‘Abbas, and I roamed the ruins of Persepolis, the legendary palace of ancient kings and one of the wonders of the classical world. I toured the country’s most famous and spectacular sites: Shiraz, Isfahan, and the magnificent tent city near Persepolis where the shah had been crowned. In the process, I developed a genuine love for this land and its complex people.

On the surface, Iran seemed to be a model example of Christian-Muslim cooperation. However, I soon learned that tranquil appearances may mask deep resentment.

Late one evening in 1977, I returned to my hotel room to find a note shoved under my door. I was shocked to discover that it was signed by a man named Yamin. I had never met him, but he had been described to me during a government briefing as a famous and most subversive radical. In beautifully crafted English script, the note invited me to meet him at a designated restaurant. However, there was a warning: I was to come only if I was interested in exploring a side of Iran that most people “in my position” never saw. I wondered whether Yamin knew what my true position was. I realized that I was taking a big risk; however, I could not resist the temptation to meet this enigmatic figure.