<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
<b>WASHINGTON (AP)</b> -- From AT&T to General Motors, several
<br> companies hoping
to save their federal subsidies from budget cuts are
<br> helping to pay
for cocktail receptions, posh dinners and other glitz at both
<br> political parties'
conventions.
<p> Some of the donors
have anted up as much as $1 million to each the
<br> Republican and
Democratic host committees that are arranging the
<br> entertainment
and transportation at the quadrennial events.
<p> The donations
allow them to sow good will among the federal, state and
<br> local officials
who will attend the GOP event in Philadelphia later this
<br> month and the
Democrats' bash in Los Angeles in August.
<p> The companies'
good deeds will not go unnoticed. Their names will be
<br> proudly displayed
as ``primary partners, ``platinum and gold
<br> benefactors''
and ``trustees'' in the convention programs and on the
<br> literature and
placards on display at the events where executives can
<br> hobnob with
Washington's elite.
<p> The companies
say their motive is simply to advance democracy and help
<br> defray the cost
of staging the massive events.
<p> ``We support
the democratic process,'' Lockheed Martin spokesman
<br> James Fetig
said.
<p> Others locked
in the battle to cut what they see as wasteful federal
<br> subsidies to
wealthy companies -- the critics call it ``corporate welfare''
<br> -- suspect another
motive.
<p> ``One has got
to be a moron and extremely naive to believe that the
<br> wealthy corporations
are contributing hundreds of millions of dollars just
<br> for the fun
of it,'' said Rep. Bernard Sanders, an independent from
<br> Vermont who
has led the battle against the subsidies.
<p> The Democratic
and Republican parties each get $13.5 million in tax
<br> dollars to pay
for their conventions.
<p> But the government
allows corporations, unions and individuals to donate
<br> unlimited amounts
-- and get a tax deduction -- to convention host
<br> committees.
<p> Eight of the
15 companies that have donated to both conventions' host
<br> committees benefit
from the federal programs that some lawmakers are
<br> trying to kill.
They also have substantial other business pending with the
<br> government,
from contracts to regulatory issues.
<p> GM and DaimlerChrysler
have made sizable donations at a time when
<br> they are fighting
efforts to trim programs that fund their research and
<br> development.
<p> Last month, the
House voted, 214-211, to cut $126.5 million, or about
<br> half the budget,
from the Partnership for a New Generation of Vehicles, a
<br> joint venture
between the government and the automakers to develop a
<br> car that gets
80 miles per gallon. The Senate has not decided yet whether
<br> to go along.
<p> GM, which has
received $8.7 million under the program, contributed
<br> more than $1
million to each convention's host committee.
<br> DaimlerChrysler,
which has gotten $19.7 million, is supporting each to
<br> the tune of
$250,000.
<p> Both car companies
also have received millions of dollars under the
<br> Commerce Department's
Advanced Technology Program, which uses
<br> federal and
private dollars to develop new products and is another target
<br> of the budget
cutters.
<p> GM donated 400
cars to each convention. ``We consider that a
<br> marketing opportunity,
making our vehicles available to an important
<br> group of people,''
spokesman William Noack said.
<p> Several other
beneficiaries of the Commerce program also are big givers
<br> to both conventions,
including communications giants AT&T, which has
<br> given $1 million
to both conventions, and Verizon, the former Bell
<br> Atlantic, which
has contributed $1 million for Philadelphia and $100,000
<br> for Los Angeles.
<p> Another target
of the corporate subsidy cutters is the Overseas Private
<br> Investment Corporation,
which provides loans and insurance for
<br> companies doing
business in developing countries. One OPIC customer
<br> is McDonald's,
which has contributed $50,000 to the Philadelphia
<br> convention and
$25,000 for Los Angeles. Another is insurance giant
<br> American International
Group, which gave $500,000 for Philadelphia
<br> AIG and a subsidiary,
SunAmerica, also gave $1 million each for Los
<br> Angeles.
<p> Keith Ashdown,
a spokesman for Taxpayers for Common Sense, an
<br> advocacy group
that supports cutting corporate subsidies, worries about
<br> the effect of
such donations.
<p> ``It is no secret
that money that goes to grease the wheels of these
<br> political conventions
makes it difficult to stop the corporate welfare
<br> machine,'' Ashdown
said.
<p> But another opponent
of the subsidies disagrees, saying constituent
<br> concerns often
drive lawmakers' interests more than political money.
<p> ``Members don't
look past the fact that a corporation might have
<br> employees in
their district, might have subcontractors in their district,''
<br> said Rep. Joseph
Hoeffel, D-Pa. ``One man's corporate welfare is
<br> another man's
desperately needed government program.''
<p> ------
<br>
<br>
<br> </html>