SCANDALS: Havoc In Holland

Stories about bribe taking by Prince Bernhard had been floating around Amsterdam since last December. At that time Ernest F. Hauser, an American and former Lockheed employee whose credentials include a criminal record (for fraud), charged that the prince had profited royally from sales of Lockheed’s supersonic Starfighter to The Netherlands. Bernhard denied the charges; without hesitation, the Dutch placed faith in their beloved prince over the convicted criminal. Last week, however, Dutch Prime Minister Joop den Uyl appeared on television with the announcement that Prince Bernhard was the “high government official” mentioned in the U.S. Senate hearings. The news had the effect of a Starfighter exploding over the Royal Palace. Never before in the history of Holland’s 400-year-old House of Orange had a member of the royal family been the target of accusations with such potentially devastating consequences. If the committee appointed to investigate the charges unearths damaging evidence, an Act of Parliament signed by the Queen would be necessary to bring the prince to trial. The nearly universal opinion in The Netherlands is that if that happened, the Queen would abdicate in favor of her intelligent and aloof eldest daughter, Princess Beatrix, 38.

In December Hauser claimed that in 1961 Lockheed paid the prince to help obtain the Dutch government’s approval for costly engineering changes that the company wanted to make—and charge for—in Dutch-owned Starfighters. Hauser added that the money had been funneled to the prince through the Swiss bank account of Fred C. Meuser, then Lockheed’s European sales director. Bernhard acknowledged a close friendship with Meuser but flatly denied receiving any kickbacks.

Lockheed Vice Chairman Carl Kotchian admitted to the Senate subcommittee that a $1 million bribe for a “high Dutch government official” had indeed been paid into Meuser’s Swiss bank account in 1961 or 1962. Meuser, who is now enjoying a comfortable retirement in his posh villa in St. Moritz, told a reporter from the Dutch socialist daily Het Vrije Volk, “I have never transmitted any money to Prince Bernhard. I am willing to go to Holland and confirm this under oath.” Where did the money go? “I put it in my own pocket,” said Meuser, perhaps a bit too readily.

If Lockheed did try to buy some princely influence, it paid a high price for an uncertain quantity. As Inspector General of the Dutch armed forces, the prince can advise the government on military purchases, but the Defense Minister and the Prime Minister ultimately make the decision. Similarly, as a board member of both Fokker Aircraft Co., which was licensed to assemble the Starfighters in Holland, and KLM, the prince was in a position to influence but not authorize purchases.

The question raised by the charges is why would the prince risk his royal position for a paltry $1 million. The House of Orange is reputed to be one of the richest families in the world, owning, among other things, a sizable share of Royal Dutch/Shell. In addition, the prince receives an annual tax-free salary of about $300,000 (Queen Juliana gets $1.5 million). The guessing games sparked by last week’s disclosures produced only fanciful theories of possible motivation. According to the “For the Panda” theory, if the prince received money, he probably gave it to one of his favorite charities, most likely the World Wildlife Fund. But fund officials say the prince has never donated more than $10,000 of his own money. Less charitable is the “Dutch Treat” theory, which speculates that Queen Juliana, having heard rumors of Bernhard’s philandering, began keeping a close eye on the family coffers. And then there is the “Bum Rap” theory. This holds that the prince never actually received the funds, which were pocketed by Meuser or another middleman.

The prince last week again denied he had received any money from Lockheed and said he welcomed “an inquiry into the affair.” At week’s end the relaxed and smiling prince arrived with Queen Juliana at the Amsterdam Hilton for a World Wildlife Fund black-tie ball. Its goal: to raise money for the endangered turtles of the Galápagos Islands.