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Authors: Hedrick Smith

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3.
Harry Zubkoff, interview with the author, June 12, 1986.

4.
Richard DeLauer, interview with the author, March 4, 1986.

5.
Denny Smith, interview with the author, February 26, 1986.

6.
Dina Rasor, who runs a clearing house for information on defense issues based essentially on information from internal Pentagon critics, used the term as the title of a book; see Dina Rasor,
Pentagon Underground
(New York: Times Books, 1985).

7.
Dina Rasor, interview with the author, April 23, 1987.

8.
Denny Smith, interview with the author, March 7, 1986.

9.
Information on Divad’s test-performance failure came to the author from five Pentagon officials, civilian and military, who were involved with evaluation but who wanted to remain anonymous.

10.
Denny Smith, interview with the author, February 26, 1986.

11.
James Ambrose, interview with the author, April 28, 1986.

12.
Denny Smith, interview with the author, March 10, 1986.

13.
Tom Carter, interview with the author, April 30, 1987.

14.
Jim Burton, interview with the author, February 4, 1987.

15.
In connection with the Pentagon, the phrase was coined by Gordon Adams in his book,
The Politics of Defense Contracting: The Iron Triangle
(New York, Council on Economic Priorities, 1981). Political scientists have used the term
subgovernments
to describe such networks in a variety of fields, not just defense.

16.
Anthony Battista, interview with the author, March 7, 1986.

17.
Warren Rudman, interview with the author, February 28, 1986.

18.
Denny Smith, interview with the author, February 26, 1986.

19.
Tom Carter, interview with the author, April 30, 1987. Other officials confirmed this but asked not to be identified as sources.

20.
Gregg Easterbrook, “Divad,”
The Atlantic
, October 1982.

21.
Charles Bennett, interview with the author, March 6, 1986.

22.
Richard Bolling, interview with the author, January 15, 1986.

23.
Gordon Adams, interview with the author, February 17, 1986.

24.
Joseph Addabbo, interview with the author, February 26, 1986.

25.
Joseph Addabbo, interview with the author, February 20, 1986.

26.
Thomas Downey, interview with the author, February 21, 1986.

27.
Bill Gray, interview with the author, September 15, 1985.

28.
John Seiberling, interview with the author, March 7, 1986.

29.
Gary Hart, interview with the author, February 20, 1986.

30.
Richard Stubbings,
The Defense Game
(New York: Harper and Row, 1986) p. xii.

31.
Lawrence Korb, interview with the author, March 21, 1986.

32.
Michael Gordon, “Defense Focus: Ready or Not”
National Journal
, June 8, 1985, p. 1387. Gordon kindly showed the author the handwritten text of Senator Stevens’s note.

33.
Lawrence Korb, interview with the author, March 6, 1986.

34.
Warren Rudman, interview with the author, February 28, 1986.

35.
Defense Week
, July 19, 1982.

36.
Congressional Record
, July 21, 1982. p. S8746.

37.
David Pryor, interview with the author, March 13, 1986.

38.
William Cohen, interview with the author, March 12, 1986.

39.
Lawrence Korb, interviews with the author, May 18 and 22, 1987. In late November, 1987, Korb filed suit against Raytheon, charging that his constitutional right to free speech had been violated.

40.
John Lehman, interview with the author, March 21, 1986.

41.
Lawrence Korb, interview with the author, March 6, 1986.

42.
The New York Times
, July 30, 1983, p. 1.

43.
Atlanta Constitution
, April 28, 1987, p. 1.

44.
William Kaufman, interview with the author, March 18, 1986.

45.
Barry Goldwater, speech on Senate floor,
Congressional Record
, October 3, 1985, p. S12533.

46.
Edward Luttwak,
The Pentagon and the Art of War
. (New York: Simon & Schuster, 1984), pp. 24–28.

47.
David C. Jones, interview with the author, March 13, 1986.

48.
Anthony Battista, interview with the author, March 3, 1986.

49.
Warren Rudman, interview with the author, February 25, 1986.

50.
Sam Nunn, interview with the author, March 10, 1986.

51.
Richard Bolling, interview with the author, January 15, 1986.

52.
David C. Jones, interview with the author, March 13, 1986.

53.
James Woolsey, interview with the author, February 14, 1986.

54.
Melvin R. Laird, “Not a Binge, but a Buildup,”
The Washington Post
, November 19, 1980, p. A17.

55.
Dave McCurdy, interview with the author, February 26, 1986.

56.
Sam Nunn, interview with the author, March 10, 1986.

57.
Richard DeLauer, interview with the author, March 4, 1986.

58.
Caspar Weinberger, interview with the author, March 28, 1986.

59.
Robert Dole, interview with the author, February 24, 1986.

60.
Les Aspin, interview with the author, August 1, 1985.

61.
Sam Nunn, interview with the author, March 10, 1986.

62.
William Cohen, interview with the author, March 12, 1986.

63.
Pete Domenici, interview with the author, April 11, 1986.

64.
This account comes from Pete Domenici, interview with the author, April 11, 1986; Steve Bell, a senior aide to Domenici, and two senior officials who were in the room with President Reagan.

65.
The President’s Blue-Ribbon Commission on Defense Management, “An Interim Report to the President,” February 28, 1986, p. 5.

66.
David C. Jones, interview with the author, March 13, 1986.

67.
E. C. Meyer, interview with the author, May 22, 1987.

9. THE NEW LOBBYING GAME

1.
David C. Jones, interview with the author, March 24, 1986.

2.
James A. Baker III, interview with the author, April 5, 1986.

3.
Howard H. Baker, Jr., interview with the author, January 14, 1986.

4.
Doug Bloomfield, interview with the author, October 28, 1985.

5.
Thomas Dine, interview with the author, July 3, 1986.

6.
Ibid
.

7.
Doug Bloomfield, interview with the author, October 28, 1985.

8.
Bob Asher, interview with the author, July 16, 1986.

9.
The Wall Street journal
, June 24, 1987, p. 21, showed eighty pro-Israel PACs with expenditures of $6.9 million, but this includes operating expenses. The political donations were about $4 million.

10.
Daniel Evans, interview with the author, June 25, 1986.

11.
Christopher Matthews, interview with the author, August 7, 1985.

12.
William Greider,
The Washington Post
, November 5, 1978, C1.

13.
Norm Ornstein, interview with the author, July 9, 1986.

14.
David Cohen, interview with the author, March 25, 1986.

15.
Terry Lierman, interview with the author, July 2, 1986.

16.
Tony Coelho, interview with the author, March 20, 1986.

17.
Wayne Thevnot, interview with author’s researcher Lauren Simon Ostrow, July 17, 1986.

18.
Charles Peters,
How Washington Really Works
(Boston: Addison-Wesley, 1980), p.6

19.
Anne Wexler, interview with the author, July 23, 1986.

20.
Tom Korologos, interview with the author, July 11, 1986.

21.
Jim Mooney, interview with the author, July 11, 1986

22.
Gray’s strategy was outlined by Sheila Tate, who was with Hill & Knowlton in 1979–80, interview with the author, February 20, 1986.

23.
Betsy Weltner, interview with the author, February 10, 1986

24.
Roger Stone, interview with the author, February 13, 1986.

25.
Robert Beckel, interview with the author, March 3, 1986.

26.
Robert Beckel, interview with the author, February 5, 1986.

27.
Fritz Elmendorf, interview with the author, July 22, 1986.

28.
Mike McAdams, interview with the author, March 19, 1986.

29.
Lynn Pounian, interview with the author, March 19, 1986.

30.
Samples of the material and internal memos from Matt Reese’s companies were obtained from Reese’s aides and other sources by the author.

31.
Jonathan Perman, an aide to Percy, shared findings and letters with the author’s researcher Lauren Simon Ostrow, May 22, 1986. Also see Ann Cooper, “Middleman Mail,”
National Journal
, September 14, 1985, pp. 2036–2041.

32.
Nicholas Bush, interview with the author, July 11, 1986.

33.
Victor Kamber, interview with the author, November 18, 1986.

34.
Federal Election Commission reports, May 10, 1987, p. 1, and May 31, 1987, p. 7.

35.
Federal Election Commission report, May 21, 1987.

36.
FEC report, May 21, 1987.

37.
Barry Goldwater, testimony before the Senate Rules and Administration Committee, September 29, 1983.

38.
Kenneth Schlossberg,
The New York Times
, May 14, 1986, p. 27.

39.
Fred Wertheimer, interview with the author, March 26, 1986.

40.
Lloyd Cutler, interview with the author, March 31, 1986.

41.
Michael J Malbin, ed.,
Money and Politics in the United States
(Chatham, N.J.: Chatham House and American Enterprise Institute for Public Policy Research, 1984), 246–247.

42.
Charls Walker, interview with the author, January 28, 1986.

43.
Mark Green, “Eight Good Reasons for Reining in PACs,”
The Washington Post
, March 23, 1987, p. A11.

44.
Thomas Edsall,
The Washington Post
, January 28, 1987, p. A19.

45.
Anne Wexler, interview with the author, January 31, 1986.

46.
David Cohen, interview with the author, March 25, 1986.

47.
Robert Strauss, interview with the author, February 11, 1986.

48.
Thomas Eagleton, interview with the author, February 21, 1986. In a survey of 114 members
of Congress by the Center for Responsive Politics in Washington, released on January 12, 1988, 209 of the members admitted that campaign contributions affected their voting. Only half said that contributions did not influence them; the rest were more qualified in their assessment.

49.
Mary Hasenfus, director of Political Affairs, U.S. Chamber of Commerce, interview with the author’s researcher William Nell, May 26, 1987.

50.
Tony Coelho, interview with the author, March 20, 1986.

51.
Brooks Jackson,
The Wall Street Journal
, October 24, 1986, page 58.

52.
This figure is derived from two reports by the Federal Election Commission, on campaign spending and PAC activity, released in May 1987, in which it was reported that 395 House incumbents spent $149 million, of which $67.7 million came from PAC contributions.

53.
Materials from Phillip Sterns’s lawsuit were obtained by the author’s researcher Kurt Eichenwald.

54.
Fred Wertheimer, president of Common Cause, quoted by the Associated Press in
The Washington Post
, March 21, 1987, p. A3.

55.
Fred Wertheimer, interview with the author, March 18, 1986.

56.
Joseph Califano, interview with the author, May 10, 1987.

57.
Ed Roeder, interview with the author’s researcher Lauren Simon Ostrow, August 5, 1986.

58.
See Common Cause,
Financing the Finance Committee
, March 19, 1986.

59.
See Common Cause,
Financing the Finance Committee
, March 19, 1986. The estimate of the Joint Congressional Committee on Taxation was that the administration’s first tax proposal in November 1984, would have imposed a new tax burden of at least $51 billion on the life, health, property, and casualty insurance industries and on employer-provided, union-sponsored fringe benefits. The final Reagan plan, sent to Congress May 28, 1985, reduced that burden to about $25 billion.

60.
Bob Packwood, interview with the author, July 12, 1986.

61.
Daniel Patrick Moynihan, interview with the author, July 2, 1986.

62.
Donald Regan, interview with the author, June 12, 1986.

63.
Material on the former officials who became lobbyists for foreign governments, including Michael Deaver’s contracts, was obtained from Justice Department files by the author’s researcher Kurt Eichenwald.

64.
Kenneth Schlossberg,
The New York Times
, May 14, 1986, p. 27.

10. SHADOW GOVERNMENT

1.
David Brockway interview with the author, August 22, 1986.

2.
Bob Packwood and Bill Diefenderfer interviews with the author, May 27 and July 12, 1986.

3.
David Brockway, interviews with the author, June 13, August 8, and August 20, 1986.

4.
Stuart Eizenstat, interview with the author, August 8, 1986.

5.
Michael Malbin,
Unelected Representatives
. New York: Basic Books, 1979. pp. 30–38.

6.
Bryce Harlow, interview with the author, November 13, 1985.

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