Editorials
Thursday, September 30, 1999Chevron’s charge:
It’s just politicsSHORTLY after primary elections that showed an impressive turnout in support of Linda Lingle, his Republican opponent in his bid for re-election as governor, Ben Cayetano announced the filing of a lawsuit accusing Hawaii's oil companies of conspiring to fix gasoline prices in violation of federal antitrust law.The issue: Chevron charges that the state's lawsuit against the oil companies is politically motivated.
The Oct. 1, 1998, announcement appeared to be timed to achieve the maximum political effect for Cayetano, whose campaign was in trouble at that point.
Now attorneys for Chevron Corp. have accused the governor, in documents filed in federal court, of filing the suit to boost his popularity before the general election.
Chevron charges that Cayetano made the decision to proceed with the lawsuit without the recommendation of his chief antitrust lawyer, who had been investigating gasoline pricing in Hawaii for a decade. Chevron said the decision to proceed was made while the state antitrust chief was testifying before the Legislature that there was insufficient evidence for a suit.
Margery Bronster, who was state attorney general at the time, denied that the filing was timed to affect the election, and the Cayetano administration calls the latest allegation a smokescreen. But if the timing was not deliberate it was a highly fortunate coincidence for Cayetano, who went on to defeat Lingle by only 5,000 votes.
As Rob Perez reported in a series of articles in the Star-Bulletin, gasoline prices in Hawaii had been substantially higher than the mainland average for years, without sufficient cost differentials to explain the gap. The series evidently prompted the state's lawsuit, which was welcome as a way to hold the oil companies to account.
However, the state must prove the existence of a conspiracy to fix prices, which could be difficult.
Chevron's filing comes as the state is seeking an order requesting that the governor be given a written list of questions by the oil companies rather than be subjected to the standard oral deposition.
The state has argued that high-ranking government officials should have some protection from depositions so they would not be subjected to undue pressure. Our view is that the cause of justice would be better served in this case through an oral deposition.
The filing of the state's suit may have had the effect of discouraging further increases in Hawaii's gas prices, even resulting in lower prices, as Bronster has observed. If so, that is a plus. But the challenge of proving that the companies fixed prices remains.
U.S. bid to improve
relations with IranPRESIDENT Clinton has taken a cautious first step in improving relations with Iran, asking that it cooperate in finding the perpetrators of a 1996 bombing of a U.S. military complex in Saudi Arabia. The Iranians are not likely to jump at the chance to help the Americans, but dialogue with Iran's new moderate president, Mohammad Khatami, could lead to improved relations between the two countries.
For most of the 20 years since the shah of Iran was overthrown by Muslim clerics, the United States has been called "the great Satan" by Iranians. The taking of hostages at the American embassy in Tehran was an outgrowth of the desire for vengeance of the fundamentalist Islamic republic.
However, Khatami has made friendly overtures to America since his election in May 1997. Although his suggestion of an exchange of academics, authors, journalists and tourists was rejected by Ayatollah Ali Khamenei, Iran's supreme religious leader, Khatami's continued presence provides hope that moderation may eventually prevail.
A senior White House official carried Clinton's letter requesting the cooperation to Paris, where it was given to an Iranian emissary. Iran and the United States do not have diplomatic ties. Consent by Iran to cooperate in the bombing investigation would come as a surprise, since Iran is suspected of helping Saudi dissidents carry out the bombing.
However, Clinton's letter also calls generally for warmer relations between the U.S. and Iran. National Security Council spokesman David Leavy said the United States seeks dialogue with Iran on such issues as terrorism, the Middle East peace process and elimination of weapons of mass destruction.
Better relations with Iran, specifically with Khatami and his political following, could be an important ingredient in the formula for stability in the Middle East.
Published by Liberty Newspapers Limited PartnershipRupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor
