Reuters U.S. business leaders steer clear of war advice Wednesday November 13, 1:39 pm ET By Jim Wolf
WASHINGTON, Nov 13 (Reuters) - A drawn-out war in Iraq would be rotten for the economy but U.S. companies have no business advising the government on a showdown with President Saddam Hussein, corporate titans told a business forum on Wednesday.
"I can't foresee that a war with Iraq would be in any way good for business except to the extent that if is done and done quickly, it may take a tremendous source of concern today away," said Frederick Smith, chairman and chief executive of FedEx Corp. (NYSE:FDX - News).
"But as for U.S. business in essence lobbying he U.S. government for a different policy than it's pursuing, I don't think that's realistic or appropriate," he said in response to a question.
FedEx is a $20 billion global transportation and logistics holding company. Its wide-bodied cargo jets form the bulk of the Civil Reserve Air Fleet, the Pentagon's emergency standby fleet.
Donald Peterson, chairman and chief executive of Avaya Inc. (NYSE:AV - News), a communications and data networking company, said he could not foresee any situation "wherein war would advance the interests of business."
"Having said that, there is an underlying issue that is of concern, and I think that issue of terrorism and so forth has to be addressed. But I wouldn't presume to offer a solution," he said.
Paul Bremer, a former U.S. ambassador-at-large for counter-terrorism, said much of the downside risk depended on how long a U.S.-led war lasted.
He and the others made their comments during and after a panel on war and business at the Fortune Global Forum, which attracts government and business leaders to hash out pressing issues.
Bremer, now chairman and chief executive of Marsh Crisis Consulting, a unit of insurance brokerage Marsh & McLennan(NYSE:MMC - News) Companies Inc., said U.S. business could be targeted for retaliatory attacks, especially if a war drags on.
Groups like al Qaeda, held responsible for the Sept. 11 attacks on the United States, could mount sophisticated operations aimed at killing many people, he said.
"So you have both the street violence and the more targeted violence that I think would become a serious risk" in any prolonged war, Bremer said. Businesses typically account for eight out of 10 terror targets, he added.
President George W. Bush has vowed to lead a coalition to disarm Iraq unless it submits to intrusive weapons inspections aimed at rooting out any remaining nuclear, chemical and biological weapons or programs to develop them.
The corporate leaders predicted a war would trigger a significant economic slowdown sparked by higher oil prices and decreased consumer demand, notably for travel. They agreed the U.S. government should step up efforts to protect the Internet, increasingly critical to business and all other sectors.
In addition, panelists said companies should prepare to protect their employees from any retaliatory attacks.
"When you peel everything back, that's the fundamental set of assets that you've got -- people who know how to run the business," FedEx's Smith said.