Fank Carlucci never trained much as a salesman. The former CIA spook turned Reagan defense secretary has been working as
chairman for the Carlyle Group, the nation's 11th largest military contractor, and for the last five years, he's been championing the the
production of 482 Crusader armored vehicles, over $11.2 billion dollars' worth of self-propelled Howitzer firepower.
He might as well have been going door-to-door with vacuum cleaners. Nobody seemed to want the damn things. They were bulky,
outdated, expensive. "It looks like it's too heavy; it's not lethal enough," Bush said during a 2000 campaign debate. "There's going to be a
lot of programs that aren't going to fit into the strategic plan for a long-term change of our military."
What a difference a war can make.
Late this March, as part of the post-9-11 military buildup, Donald Rumsfeld gave United Defense, Carlyle's subsidiary, the full
monty: over $470 million to continue development on the problem-riddled Crusaders, puzzling some military analysts.
"The Crusader has been the GAO's poster child for bad weapons development," says Eric Miller, an analyst who watches defense for the
Project on Government Oversight. "Influence is tough to measure, but it's certainly had a friend somewhere."
Make that a very close friend. Two internal Defense Department documents-letters between Carlyle and Rumsfeld-recently made
available to the Voice show the intimate relationship between the Bush administration and the Carlyle Group.
"Dear Don," reads the first note, dated February 15, 2001, and signed by Carlucci on Carlyle stationery. "Thanks for the lunch last
Friday. It was great seeing you in such good spirits even if you are 'all alone.' "
Rummy, all alone? The Defense Department declined to comment on that one. A spokesman for the Carlyle Group, Chris Ullman,
explains that 'all alone' simply means Rumsfeld, fresh in office, felt overwhelmed by the duties of his new job. He invited Carlucci
over to the Pentagon for advice-not as a Carlyle chairman, but as a former public servant-along with William Perry, former Clinton
defense secretary. The letter, Ullman says, should not have been printed on Carlyle stationary. "It was an oversight."
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But what people misunderstand about Carlyle, co-founder David Rubenstein told Fortune magazine last month, is that his celebrity
staff does less than people think, and whatever the public may be speculating-e.g., global-domination conspiracy stuff-is just not true.
"We don't lobby government," he said-and by law, even if the company did, it wouldn't be illegal. Carlucci, who has been out of office
long enough to work as a lobbyist if he wanted to, told Fortune he had been "particularly cautious" not to discuss Carlyle business with
Rumsfeld. True, the two have become close friends since their Ivy League days together on the Princeton wrestling team, and the
defense secretary and his wife, Joyce, often dine at the Carluccis' house, and Rummy occasionally lends Frank and Marsha the keys to
their $280,000 ski condo in Taos, New Mexico. Talk of weapons development could easily come up between the two Tigers alums. In
the magazine interview, Carlucci insisted it does not.
"I have never mentioned the word Crusader in his presence," he said.
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