Behind the Headlines Klutznick is Facing Stormy Weather

At age 72, Philip Klutznick is embarking on what appears will be the most critical period of his extraordinary career as a lawyer, real estate developer, financier, government specialist and a leader in Jewish communal organizations.

Having earned millions in his Chicago based business enterprises after leaving his law practice in Omaha, the Kansas City native had time for manifold services for six Presidents–two Republicans and four Democrats–and led both the B’nai B’rith and the World Jewish Congress.

In becoming Secretary of Commerce–Senate confirmation is certain–for President Carter, he faces officially such problems as weighing the Jackson-Vanik Amendment’s relationship to Soviet Jewish emigration and administering the provisions of the U.S. law against the Arab boycott of American companies that do business with Israel or have Jewish managers.

In addition, having been named to the Cabinet in an admittedly political lactic in a tense Presidential campaign, he will be encountering what Vice President Walter Mondale at an Israel Bond rally here called “emotion-laden” situations in Israeli-Arab-American relations.

Klutznick is not resigning from the W JCongress’ presidency but is taking “a leave of absence,” indicating that when his governmental functions are over he will have the option of again returning to its helm. He became its head in November, 1977, succeeding Nahum Goldmann. Klutznick’s temporary successor in the W JCongress is being selected under a method already set up, with W JCongress Secretary General Gerhart Reigner in Geneva conducting it.

A MAN FOR ALL SEASONS

Klutznick, whose resourcefulness either in business, finance or government has never been seriously, questioned, has served every President over the past 40 years with the exception of Richard Nixon. A recognized expert on wide-scale housing at home and abroad, he served in these capacities, as in other ways, both for American Presidents and in the United Nations.

After advising Presidents Franklin D. Roosevelt and Harry Truman, he was named by Dwight D. Eisenhower to the U.S. delegation to the 12th UN General Assembly. John F. Kennedy chose him to be the U.S. representative with the rank of Ambassador to the UN Economic and Social Council. Lyndon Johnson gave him special assignments, including missions to Brazil and Panama.

Now under Carter, Klutznick is plunging into heavy political weather that was not on the horizon during his previous Presidential duties. In an interview with the Jewish Telegraphic Agency and later in a news conference in Washington, Klutznick said he took the Cabinet job because he was asked–Mondale is credited with persuading him–and because he wants to help advance America economically, especially in trade. But what of the political element?

“A President of the United States considers any appointment to his Cabinet to be political,” he told JTA. “I wouldn’t have accepted the appointment if I didn’t favor Carter’s re-election. I respect Ted Kennedy. I’m not against him. I am for Carter.”

SOVIET-AMERICAN TRADE

Regarding Soviet-American trade and the emigration factor, he told the press: “I have tried in my lifetime to keep issues separated as much as I can. I wasn’t either an opponent or the proponent of the Jackson-Vanik bill. It has served certain constructive objectives. I would be very doubtful whether it should be a normal practice under normal circumstances. But the case that was involved appeared to be extreme enough in the judgement of members of the Congress to have taken action, which I again say, has been some-what effective.”

Asked whether he had “any thoughts” on a pending trade agreement with the Soviet, he replied, “none that I would express here.”

On the Arab boycott law, he said “from everything I’ve heard, it’s been fair and just. I don’t plan to do anything more than seeing that it’s fair and just, as the laws dictate.” Klutznick was a member of the Business Round Table that helped negotiate the legislation.

MIDEAST PEACE PROCESS

Noting that Egypt and Israel have “made progress, ” he stressed a Middle East peace is “not a simple problem” and observed Egypt and Israel have until May I to agree on a West Bank-Gaza autonomy plan. That leaves open the question of what course he may have to take when April ends, but that is left to the future even as May 1980 looms as a crucial date in U.S.-Israeli-Egyptian relations.

Klutznick has had his controversies with other Jewish communal leaders, notably in February 1978 when he met with Egyptian President Anwar Sadat during a tense and delicate period in Israeli-American-Egyptian relations when it appeared a movement was underway to split the Jewish community.

“I don’t happen to believe American Jews should engage in avoiding a guest of the President even though you don’t agree with him,” Klutznick said in the JTA interview. He minimized that particular dispute, noting “we have controversies for 48 hours” within the Jewish community.

Exemplifying his resourcefulness, Klutznick after that controversy subsided, successfully suggested later that year to Northwestern University that it grant on honorary Doctorate of Law to Israeli Premier Menachem Begin.