Bernard Schwartz Gave Heavily To Democrats

He has a reputation as reliable, generous contributor

WASHINGTON (AllPolitics, May 21) -- One of the key figures in the campaign cash and satellite technology controversy, Bernard Schwartz, is known in Democratic circles as a generous contributor and an early supporter of Bill Clinton.

But Schwartz, chairman and chief executive officer of Loral Space and Communications, once said he did not need to make political contributions to gain access to the centers of power.

"I can open any door I want as chairman of a $6 billion company," Schwartz boasted.

In an interview this week with CNN's Lou Dobbs on "Moneyline," Schwartz repeatedly denied his campaign contributions were intended to influence Clinton Administration policy.

"Not at all," Schwartz said. "I've been a Democrat all my life, and I've been a contributor to candidates of Democratic persuasion -- sometimes Republican -- all my life. I'm a political activist. I consider it a responsibility and, frankly, I consider it a privilege to be a part of it."

He denied, too, that Loral exported technology in a way not in the national interest.

"I can say categorically that Loral did not violate the export control rules, neither the letter or the spirit," he said. "Everything we do is under license. We've been in this business -- the space business, defense business -- for over 25 years. We know the rules, and we follow them."

Schwartz vowed to cooperate with congressional and Justice Department investigations. "And as far as the political contribution issue is concerned, this comes under the heading ... of no good deed goes unpunished," Schwartz said. "I don't think there is anything here for me to be concerned about."

But in Congress and the Justice Department, officials are concerned enough to mount separate probes into whether Schwartz's donations eased the way for a presidential order allowing the company to share its satellite technology with China. Schwartz gave more than $620,000 to the Democrats in 1996, more than any other single donor, and he has given a total of more than $1 million to Democratic causes since 1991.

In the Clinton White House, Schwartz apparently was seen as a reliable source of fund-raising help. The Associated Press reported that in 1994, then-deputy chief of staff Harold Ickes recommended Schwartz for fund-raising calls when the party needed $3 million for TV ads.

"I think he's an extraordinarily upstanding and ethical guy," Ickes told AP. "And he's a passionate Democrat."

Schwartz was even considered as a candidate for secretary of defense two years ago, although ex-Republican Sen. William Cohen ultimately got the job.

Schwartz attended at least three White House events -- a holiday party, a Kennedy Center event and a state dinner for British Prime Minister Tony Blair -- in the three months before his firm got the February 1998 waiver that allowed it to do business with China.

But Schwartz said through a spokesman that he never discussed the waiver with Clinton or anyone else at the White House.

Thursday, May 21, 1998

• Chinese Aerospace Official Denies Giving To Dems
• Senate Signals Disapproval Of Liability Cap For Tobacco Industry
• Oregon Primary Results
• Clinton Seals U.S. Approval Of NATO Expansion
• Prominent Donor Testifies Before Lewinsky Grand Jury

• The 'Inside Politics' Interview: Rep. Chris Cox

• Moneyline Interview: Loral CEO Bernard Schwartz