NewsMax.com
Friday, March 28, 2003

The resignation, delivered by letter Wednesday to Secretary of Defense Donald Rumsfeld, was apparently prompted by the continuing controversy swirling around his meeting with a Saudi arms dealer and a contract with Global Crossing, a bankrupt telecommunications company seeking Defense Department permission to be sold to Chinese investors.

The Defense Department and the FBI had objected to the sale, citing national security and law enforcement concerns.

Perle's recent round of troubles began with an article in the New Yorker that disclosed that Perle had lunch this year with the arms dealer Adnan Khashoggi.

Last week, Perle and attorneys involved in Global Crossing's bankruptcy disclosed that he had been hired to guide the distressed company past Defense Department reluctance to allow the sale to an Asian company headed by Hutchison Whampoa, a venture controlled by Hong Kong billionaire Li Ka-shing.

Applying pressure, Rep. John Conyers, D-Mich., requested the Pentagon's inspector general to examine Mr. Perle's business dealings. Furthermore, Sen. Carl Levin, D-Mich., sent a letter to Mr. Rumsfeld voicing "deep concern" about reports of Mr. Perle's business relationships.

"I believe that Mr. Perle should be asked to make a choice between stepping down from the Defense Policy Board or making a commitment not to have any further contact with DOD officials on behalf of a client, not to allow his name to be used in connection with any such contact, and not to accept any fee that is contingent upon an action of the Department of Defense," Levin wrote.

Perle, who in an attempt to defuse matters had offered to donate any disputed fees collected in the past to the relief of military families, wrote in his letter to Rumsfeld:

"I have seen controversies like this before and I know that this one will inevitably distract from the urgent challenge in which you are now engaged. I would not wish to cause even a moment's distraction from that challenge. As I cannot quickly or easily quell criticism of me based on errors of fact concerning my activities, the least I can do under these circumstances is to ask you to accept my resignation as chairman of the Defense Policy Board."

The Pentagon advisory board is non-paying but still subjects members to federal ethics rules.

Thursday night, Rumsfeld issued a statement:

"Richard Perle has a deep understanding of our national security process and an abiding interest in preserving America's strength and freedom. He has been an excellent chairman and has led the Defense Policy Board during an important time in our history."

According to the New York Times, some senior officials at the Pentagon are not unhappy with Perle's resignation. Reportedly, some of Perle’s statements on Iraq implied that they were more or less adopted by Rumsfeld, who speaks for himself.

A vigorous supporter of the war with Iraq, Perle was considered one of the more influential advisers to the Bush administration. Reportedly, Perle may stay on in the capacity of an ordinary board member.

Read more on this subject in related Hot Topics:
Global Crossing Scandal
Saddam Hussein/Iraq

Bush Administration

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