Frank McKenna’s appointment as Canadian ambassador tothe U.S. is a boon to the corporate world.During his decade as premier of New Brunswick,McKenna was heralded as a neo-liberal golden boy. Backthen, his magic bullet for the struggling Maritimeeconomy was call centres.

In the years since, McKennahas served on numerous corporate boards and he isstill heralded as a neo-liberal golden boy. However,today it can be said that McKenna’s magic bullet isbullets.

McKenna chairs the Canadian advisory board to TheCarlyle Group, which bills itself as the world’slargest private equity-investment firm. Carlyle’sUS$18.9 billion in assets include heavy investmentsin munitions and weapons systems manufacturing. Amongits most profitable military interests is UnitedDefense Industries Incorporated — the U.S. army’s fifth-largestcontractor and builder of armoured vehicles, missilelaunchers, artillery, defence electronics and navalguns.

McKenna will presumably step down from the CarlyleBoard to assume the ambassadorship. However, heremains a part of that revolving door connectingpolitical office and arms manufacturers foreshadowedby Dwight D. Eisenhower as the “military industrial complex.”

Carlyle employs a who’s who of ex-politicos, some ofwhom had cameos in Michael Moore’s Fahrenheit 9/11.These include former U.S. secretary of state, James A.Baker III; former British prime minister, John Major;former president of the Philippines, Fidel Ramos; anda phalanx of other Washington hawks. Carlyle’s pastchairman, former defence secretary to Ronald Reaganand former deputy director of the CIA, Frank Carlucci,was a college classmate of Donald Rumsfeld.

Other Canadians involved in Carlyle include PeterLougheed, the former premier of Alberta; PaulDesmarais, of Power Corp., Bombardier’s LaurentBeaudoin, and former Canadian ambassador to the UnitedStates, Allan Gotlieb.

Carlyle wields the clout of its celebrity payroll andextensive network to secure military contracts andother deals around the world. In appreciation, theformer politicians are paid in equity cuts oncorporate contracts.

McKenna has stated that he wants to see more Canadianinvestment in Carlyle while pitching militaryproduction as an economic stimulator for his homeprovince. Despite criticism from organizations such asthe Council of Canadians and the Canadian LabourCongress, McKenna defends the Canada Pension Plan’sinvestment of US$60 million of Canadians’ accumulatedpension contributions into a Carlyle venture fund.

The role of U.S. envoy will position McKenna to playhandmaiden to corporate aspirations in Canada,including Canadian-based subcontracts for the U.S. military. The result will be a deeper corporateintegration on the continent and a further drift awayfrom any distinction between Canadian sovereignty andAmerican manifest destiny.

McKenna’s shift from Carlyle employee back toCanadian public servant is a conflict of interest, ofcourse. But Carlyle is no stranger to conflict ofinterest.

Carlyle’s investors once included the Bin LadenGroup, the $5 billion construction firm run by OsamaBin Laden’s estranged family. Following requests fromother shareholders, Carlyle closed its connection withthe family on October 26, 2001, but there was a windowduring which the family stood to profit from the waragainst their notorious son.

In the summer of 2002, McKenna hosted a Carlylemeeting in Moncton attended by former president GeorgeBush Sr., who chaired Carlyle’s Asian advisory boardat the time. Some of Canada’s largest corporateplayers sat at the table during the closed-doormeetings.

During his press conference, McKennadismissed concerns about Carlyle’s reputation forweapons investments greased by political connections.“We’re not here to try and talk about somemilitary-governmental-industrial conspiracy orglobalization,” he told reporters. “We’re just here totry to help contribute to the Atlantic economy. Nomore. No less.”

Indeed.