SUNSTAR ANALYSIS

OF
FLEECED by Dick Morris,
Infiltration by Paul Sperry
[VOLUME 2]
Putting The Pieces
Of
Osama Bin Ladens
9-11 Puzzle Together Through His Corporate &
Political Benefactors
Research From The Library Of
Dr. Michael Sunstar, D.D.
Copyright 2009
All Rights Reserved To Referenced
Researchers And Authors
This is not for Sale But For Freedom Of
Information and Your Right To Know The Truth

CONTENTS
CHAPTER 1
LIST OF ISLAMIC MOSQUES AND ORGANIZATIONS IN
AMERICA THAT EVERY AMERICAN SHOULD MONITOR AND
HELP OUR INTELLIGENCE AGENCIES PROFILE &
PROSECUTE
CHAPTER 2
FLEECED Sunstar Commentary On Dick Morriss 21st
Century Revolutionary Revelations Of The Democratic
Partys Fleecing Of Americans
CHAPTER 3
DETAILS ON SELLING U.S. PORTS TO THE UNITED ARAB
EMIRATES AND 20% OF NASDAQ A CLEAR ACT OF
TREASON
CHAPTER 4
BAILOUTS FOR BANKS, BUT NOT AMERICANS

CHAPTER 1
LIST OF ISLAMIC MOSQUES AND ORGANIZATIONS IN
AMERICA THAT EVERY AMERICAN SHOULD MONITOR AND
HELP OUR INTELLIGENCE AGENCIES PROFILE &
PROSECUTE

Here is a list of terrorist mosques and organizations that

Paul Sperrys book entitled: INFILTRATION names, which
ALL AMERICANS have the responsibility of monitoring. I call
upon all Americans to profile EVERY Muslim in America and
take whatever actions are necessary to defend our
homeland against those avowed to destroy this country, and
others too. I also call upon every American to drop your
support of the Democratic Party as their policies allowed
these organizations and groups to arrive on American soil.
They are NOT INTERESTED IN NATIONAL SECURITY, but
NATIONAL EXTERMINATION!

ISLAMIC INFILTRATION GROUPS IN AMERICA SET UP AT

TAX PAYER EXPENSE
1. CAIR Council On American Islamic Relations
2. American Muslim Council
3. Islamic Center Of Washington
4. Saudi Wahhabi Lobby
5. Muslim World League
6. Islamic Mosque In Washington
7. Wahhabi Mosques In America
8. Dar al-Hijrah Islamic Center
9. Mosque In New Jersey
10.
Wahhabi Mosque in Santa Clara, California
11.
Wahhabi Mosque in San Franscisco, California
12.
Safa Group In North Virginia / Muslim Charities
13.
World Islamic Studies Enterprise XXIII
14.
American Arab Anti-Discrimination Committee
15.
Muslim Public Affairs Council Los Angeles, California
16.
American Muslim Alliance
17.
The Saudi Embassy
18.
The Islamic Society Of North America
19.
Graduate School Of Islamic & Social Sciences
20.
The FIQH Council Of North America
21.
Islamic Society Of Orange County, California
22.
Islamic Circle Of North America
23.
Muslim Chaplain Corps For The Pentagon
24.
Islamic Association For Palestine
25.
The Center For Muslim Christian Understanding
26.
Graduate School Of Islamic & Social Sciences
27.
The Holy Land Foundation
28.
The International Institute Of Islamic Thought
29.
Saudi Consulate In Los Angeles, California
30.
Mosque In San Diego, California
31.
Starbucks On Leesburg Pike In Falls Church (As Short Drive
From Route 1 To The Pentagon) [Page 75] I highly recommend
that only democrats drink their coffee there!
32.
Skyline Tours [Page 76] Saudi Yemeni Diplomats
33.
Baileys Crossroads (The Heart Of Arab-Muslim Community)
Located In Fairfax County Virginia) [Page 77]

34.

Build America [Page 77] Arab Shopping Center

a. Skyline Butcher Shop
b. Al-Amal Market & Butcher
c. Al-Amanah Halal Meat Market
d. The Abay Market
e. Awash Market & Butchery
f. Tenadam International Market
g. Al-Jazeera Restaurant
h. Oasis Caf
i. Prince Caf
j. Beder Discount Store
k. Mughal Bazaar (Pakistani Nationals)
l. Falikas Fashions
m. Al-Shamoriginal Sweets
n. Skyline Court Professional Park
35.
World Assembly Of Muslim Youth (WAMY) based in Riyadh,
Saudi Arabia, but also organized in America
36.
American Muslim Foundation
37.
Taibah International Aid Association
38.
Muslim American Society
39.
Muslim Brotherhood
40.
Palestinian Islamic Jihad
41.
Muslim Student Association Of The U.S. & Canada
42.
United Association Of Islamic Studies & Research
43.
Benevolence International Foundation
44.
Global Relief Foundation [Page 90]
45.
Muslim Brotherhood [Operates under the front Muslim
American Society]
46.
BMI, Inc.
47.
Happy Hearts Trust
48.
The FIQH Council
49.
American Muslim Armed Forces And Veteran Affairs Council
50.
Center For Muslim-Christian Understanding [Page 95] A
Catholic Institution
51.
Islamic Society Of North America [Page 96 - Muzammil Siddiq
spoke at an INTERFAITH summit held by:
a. World Council Of Churches
b. National Council Of Churches
c. National Council Of Christians And Jews In The USA

d. Interfaith Council Of South Orange County In California

e. Academy Of Judaic-Christian & Islamic Studies
f. Interfaith Alliance (Page 97) Mahdi Bray was the first Muslim
named
g. National Association Of Evangelicals (Now participates in the
annual conference in Qatar organized by:
h. THE ISLAMIC INSTITUTE
52.
THE ISLAMIC INSTITUTE
53.
Foundation For Muslim-Christian Understanding
54.
Georgetown Center [Page 98] Hasib Sabbagh Wing built in
1995 during the Clinton years
55.
Whiskey Wahhabists
56.
Hamas Fronts & Mosques In Chicago (Page 101)
57.
Mosque In San Francsisco, California
58.
Wahhabi Mosques In Brooklyn & New Jersey, Albany, New York
called: THE MOSQUE OF PEACE
59.
All DULLES Area Muslim Society (The Adams Center)
60.
Muslim World League (Saudi Based)
61.
International Islamic Relief Organization [Page 80]
62.
Success Foundation (Hamas Front) [Page 80]
63.
Son Of Hamas Leader Surfing In San Diego
64.
Alharmamain Islamic Foundation Of Saudi Arabia
65.
Center For Islamic Information and Education
66.
Halalco
67.
The Safa Group
68.
Acul-de-Sal called Safa Court near a wooded division called
Mena Estates has organizations called Safa Trust & Mena
Investments.
69.
International Institute Of Islamic Thought [Page 85]
70.
Arab American Directory the yellow pages for Muslims in
Washington
71.
SAAR Foundation became Sterling & Humana Charities
72.
The American Muslim Political Coordination Council (1998)
73.
Council On American Muslim Relations (1998)
74.
Muslim Public Affairs Council (1998)
75.
American Muslim Council (1998)
76.
Council Of Presidents Of Arab American Organizations
77.
Arab American Anti-Discrimination Committee
78.
Arab American Institute [Page 87]

79.
National Association Of Arab Americans
80.
The Association Of Arab University Graduates
81.
October 2000 17 National Arab & Muslim Groups marched on
Washington to protest Israel
82.
Islamic Society Of North America
83.
Muslim Students Association [Page 89]
84.
Islamic Association For Palestine
85.
[PAGE 100] In 1980, there were 481 officially recognized
mosques in America. Today, there are 1,209 mosques officially
recognized in America [I heard another figure of 2,000]. 80% of them
are controlled by Saudi Arabia
86.
Saudi Arabian Airlines
87.
Institute For Islamic And Arabic Sciences In America [Page 129]
the arm of the Saudi Government
88.
Masjid at-Tawhid Mosque [PAGE 130]
89.
JIMAS [A U.K. Islamic Charity]
90.
Abu-Dhabi Investment Authority [Fleeced Page 7]
91.
Mubadala Development Company, recently bought stakes in
the Carlyle Group and Advanced Micro Devices [Fleeced Page 7]
92.
The Mosque Foundation/Bridgeview Mosque (Chicago)
93.
Benevolence International Foundation
94.
Global Relief Foundation
95.
North American Islamic Trust (Page 105)
96.
The Islamic Center Of San Diego A Saudi-Controlled Wahhabi
Mosque
97.
Ayah Dawah Prayer Center
98.
Muslim Community Association (San Francisco/Santa Clara,
California)
99.
Al Farouq Mosque (Page 108)
100.
Islamic Center Of Greater Cleveland (Ohios Largest Mosque)
101.
NO. 1 (In Bushs backyard in Texas) One of Americas largest
Wahhabi Mosques
102.
Dar Al-Hijrah Islamic Center (6 million dollar mosque)
103.
THE GOLDEN CHAIN
104.
Bank Al-Taqwa
105.
Taibah International Aid Association
106.
Islamic Association for Palestine
107.
National Association Of Muslim Chaplains

108.
Islamic Saudi Academy, Saudi Financed School in Alexandria
(Page 115)
109.
International Islamic Relief Organization U.S. Branch
110.
The Al Aqsa Educational Fund
111.
The Washington Islamic Academy
112.
HOLY LAND FOUNDATION co-founder Mohammad ElMezain of San Diego, arrested for charges of funneling millions of
dollars to Hamas.
113.
Islamic Circle Of North American Muslim American Society
114.
Saudi Arabian Airlines
115.
Institute For Islamic And Arabic Sciences In America (Page
129) Arm of Saudi Government
116.
Masjid at-Tawhid Mosque (Page 130)
117.
Islamic Development Bank
118.
Al-Maktoum Foundation Of The United Arab Emirates
119.
Muslim Community Association
120.
Islamic Assembly Of North America
121.
Arab American Institute
122.
American Arab Anti-Discrimination Committee
123.
Harken Energy
124.
Islamic Institute In Washington
125.
Saudi Economic Development Corp.
126.
The Islamic Institute
127.
www.islamonline.net
128.
Group In America (Page 298)

WHAT DO ALL OF THESE ISLAMIC GROUPS IN AMERICA MEAN?

Catastrophe. Your INTERNATIONALIST leaders sold us out for
extermination, the same internationalists that made Hitler and Israels
enemies rich: Rockefellers & Rothschilds.
David Rockefeller sure has used Senator Kerry as his sock puppet
during 2008/2009!
What exactly have they been up to? National Security for the God of
Israel and His children? Uhm. No.

Democratic treason violated the God of Israels first two sacred

commandments of the Ten Commandments:
The Holy Bible, New International Version . Ex 20:2.
Ex 20:2

I am the LORD your God, e who brought you out f of Egypt, g out
of the land of slavery. h
Ex 20:3
You shall have no other gods before 44 me. i
Ex 20:4
You shall not make for yourself an idol j in the form of anything in
heaven above or on the earth beneath or in the waters below.
The Holy Bible, New International Version . Ex 20:7.
Ex 20:7

You shall not misuse the name of the LORD your God, for the

LORD will not hold anyone guiltless who misuses his name. p
Democrats have violated Commandments #1, #2, and #4, but lets just
say, theyve violated Gods Holy Covenants with Israel PERIOD! Their
god is NOT THE GOD OF ISRAEL! They have joined the false god allah
and the false prophet Muhammad beside and before the God of Israel
and have subjected Americans to the same fate that historically
destroyed Israel since the times of King Nebuchadnezzar.
The Democratic Party, in LEAGUE with Freemasons, communists,
socialists, and Islamic fascists have made a treaty with the gods of
Israels enemies: With MOLECH, CHEMOSH, ASHTORETH, BAAL,
OSIRIS, ON, ISIS, HORUS, DIANNA, ALLAH, BUDDHA, KRISNA, and
have transcendentally meditated themselves straight into hell,
dragging everybody else down with them!

These groups listed above all exist in America. I call you to do the exact
opposite of what the Democrats preach from their political pulpits:
PROFILE EVERY ARAB AND EVERY MUSLIM IN AMERICA AND DONT
TRUST A SINGLE ONE OF THEM! No matter how nice they are, the
same argument used to defend gay men and lesbian women, that they are

nice somehow excuses their evil minds and intentions. And the crux of the
Islamic deception lies in each ATTITUDE TOWARDS ISRAEL!
Be WATCHFUL and VIGILANT of ALL MUSLIMS in America and
throughout the whole world and I encourage EVERY AMERICAN to profile
all Muslims and anyone of Arabic origins as ANY OF THEM could become
a potential terrorist threat to you and your families, your neighborhoods,
and the government of the United States of America. Dont mistreat them,
as it is against Gods Torah Law to be unkind to foreigners and aliens. I am
simply asking all Americans to watch ALL THE MOVEMENTS that Muslims
and Arabs make in America. But CERTAINLY DO NOT TRUST ANY OF
THEM, NO MATTER HOW NICE OR CHARITABLE THEY MIGHT BE.
BOTH Republicans and Democrats ARE GUILTY of doing this to us. All the
energy deals signed with Israels enemies are doing to America today, what
the worship of other gods did to ancient Israel it will destroy us all
permanently. Is it any wonder our intelligence agencies are warning
Americans that a chemical/biological/nuclear/weapons of mass destruction
attack is only a matter of time? Is it any wonder that the President of Iran is
smiling, almost triumphant? When you hear terms such as, AL QAEDA
CELLS already in America, you can be certain that EVERY
ORGANIZATION LISTED ABOVE was named in INFILTRATION as having
connections with terrorists or being, in themselves, sponsors of terrorism.
I highly recommend you read the book: INFILTRATION and discover THE
OTHER SECRET SOCIETIES OF ISLAM that were built in America. You
can thank the Clintons for this outrage and all those who allowed this form
of SILENT terrorism to occur.
If this doesnt cause you alarm, as it obviously caused our intelligence
agencies alarm, I would like to offer you this story:

Son of Hamas Leader Turns Back on Islam and Embraces

Christianity
Tuesday, August 12, 2008
http://www.foxnews.com/story/0,2933,402483,00.html

Mosab Hassan Yousef is an extraordinary young man with an extraordinary story.

He was born the son of one of the most influential leaders of the militant Hamas
organization in the West Bank and grew up in a strict Islamic family.
Now, at 30 years old, he attends an evangelical Christian church, Barabbas Road in
San Diego, Calif. He renounced his Muslim faith, left his family behind in Ramallah and
is seeking asylum in the United States.
The story of how his life unfolded is truly amazing, whether you agree or disagree with
his views. Below is a transcript on an exclusive FOX News interview with Hassan as he
tells firsthand how a West Bank Muslim became a West Coast Christian.
JONATHAN HUNT: Why, after 25 years, did you change?
MOSAB HASSAN YOUSEF: I believe that all those walls that Islam built for the last
1,400 years are not existing (sic) anymore. They don't recognize this. They built those
walls and made people ignorant because they're afraid. They didn't want people to
discuss anything about the reality of Islam, about the big questions of Islam and they
asked their followers, the Muslims, 'Don't ask about those certain questions.'
But now, people have media. If the father closes the door for his daughter not to leave
the house, she's going to go behind her computer and travel the world. So people easily

can get information, knowledge, searching (sic) engines, so it's very, very available for
everybody to study about Islam, about other religions. Not from the Islam point of view,
but from other points of view.
So for the next 25 years this is for sure going to make huge change in the Muslim and
the Arab world.
JONATHAN HUNT: You speak from a unique perspective, a man who grew up not just
in an Islamic family but as part of an organization seen by many people around the
world as an extreme force in Islam: Hamas. What is the reality of Islam? You say people
don't see the reality; What is the reality of Islam?
MOSAB HASSAN YOUSEF: There are two facts that Muslims don't understand ... I'd
say about more than 95 percent of Muslims don't understand their own religion. It came
with a much stronger language than the language that they speak so they don't
understand it ... they rely only on religious people to get their knowledge about this
religion.
Second, they don't understand anything about other religions. Christian communities
live between Muslims and they're minority and they (would) rather not to go speak out
and tell people about Jesus because it's dangerous for them.
So, all their ideas about other religions on earth are from Islamic perspectives. So those
two realities, most people don't understand.
If people, if Muslims, start to understand their religion first of all, their religion and
see how awful stuff is in there, they'll start to figure out, this can't (be) ... because most
religious people focus on certain points of Islam. They have many points that they are
very embarrassed to talk about.
JONATHAN HUNT: Such as?
MOSAB HASSAN YOUSEF: Such as Muhammad's wives. You will never go to a
mosque and hear about anyone talking about Muhammad's wives, which is like more
than 50 wives and nobody knows (this), by the way. If you ask the majority of
Muslims, they will not know this fact.
So they're embarrassed to talk about this, but they talk about the glory of Islam, they
talk about the victory, the victories that Muhammad made. So, when people just like
look at themselves and see they're defeated, they have ignorance, they're not educated,
they're not leading the world as they're expected to do. Theyre think they want to get
back to that victory by doing the same, what Muhammad did, but disregarding (sic) the
timing. They forget that this happened 1,400 years ago and it's not going to happen
again.
JONATHAN HUNT: Do they want to destroy Christianity?

MOSAB HASSAN YOUSEF: Islam destroyed Christianity from the beginning and
Muslims don't recognize that they stabbed Christianity (in) its heart when they said that
Jesus wasn't killed on the cross. They think that they honor him in this way.
Basically, any Christians understand that this way, (but Muslims) tell Jesus, okay, we
don't care, you didn't die for us. Someone sacrificed his life for you, (but) you tell him,
okay, you didn't do it!
This is what Muslims are doing basically. But they don't understand that this is the most
important part of Christianity: the cross!
So, they are ignorant, they don't know what they are doing and it explains what an evil
idea it is behind this Islam.
JONATHAN HUNT: What specific event or events began to change your mind about
Islam?
MOSAB HASSAN YOUSEF: Since I was a child I started to ask very difficult questions,
even my family was telling me all the time, 'You're a very difficult person and we were
having trouble answering your questions. Why are you asking so many questions?' This
was from the beginning, to be honest with you.
But I felt that everybody and my father was a good example for me because he was
a very honest, humble person, very nice to my mother, to us, and raised us on the
principle of forgiveness, okay? I thought that everybody in Islam was like this.
When I was 18 years old, and I was arrested by the Israelis and was in an Israeli jail
under the Israeli administration, Hamas had control of its members inside the jail and I
saw their torture; (they were) torturing people in a very, very bad way.
JONATHAN HUNT: Hamas members torturing other Hamas members?
MOSAB HASSAN YOUSEF: Hamas leaders! Hamas leaders that we see on TV now,
and big leaders, responsible for torturing their own members. They didn't torture me, but
that was a shock for me, to see them torturing people: putting needles under their nails,
burning their bodies. And they killed lots of them.
JONATHAN HUNT: Why were they torturing people?
MOSAB HASSAN YOUSEF: Because they suspected that they had relations with the
Israelis and (were) co-operating with the Israeli occupation against Hamas ... So
hundreds of people were victims for this, and I was a witness for about a year for this
torture. So that was a huge change in my life. I started to open my (eyes), but, the point
(is) that I got that there are good Muslims and bad Muslims. Good Muslims, such as my
father, and bad Muslims, like those Hamas members in the jail torturing people.
So that was the beginning of opening my eyes wide.

JONATHAN HUNT: You talk about the good Muslims, like your father, yet you still now
renounce the faith of your father. Could you have not been a good Muslim?
MOSAB HASSAN YOUSEF: Now, here's the reality: after I studied Christianity which
I had a big misunderstanding about, because I studied about Christianity from Islam,
which is, there is nothing true about Christianity when you study it from Islam, and that
was the only source.
When I studied the Bible carefully verse by verse, I made sure that that was the book of
God, the word of God for sure, so I started to see things in a different way, which was
difficult for me, to say Islam is wrong.
Islam is my father. I grew up for (one) father 22 years for that father and another
father came to me and told me, 'I'm sorry, I'm your father.' And I was like, 'What are you
talking about? Like, I have my own father, and it's Islam!' And the father of Christianity
told me, 'No, I'm your father. I was in jail, and this (Islam) is not your father.'
So basically this is what happened. It's not easy to believe this (Islam) is not your father
anymore. So I had to study Islam again from a different point of view to figure out all the
mistakes, the huge mistakes and its effects, not only on Muslims (of) which I hated
the values ... I didn't like all those traditions that make people's lives more difficult but
its effects also on humanity. On humanity! People killing each other (in) the name of
God.
So definitely I started to figure out the problem is Islam, not the Muslims and those
people I can't hate them because God loved them from the beginning. And God
doesn't create junk. God created good people that he loved, but they're sick, they have
the wrong idea. I don't hate those people anymore but I feel very sorry for them and the
only way for them to be changed (is) by knowing the word of God and the real way to
him.
JONATHAN HUNT: Does it worry you that in saying these things and given your
background and your words carrying extra weight there is a danger that you will
increase the difficulties, the hatred between Christians and Muslims in the world right
now?
MOSAB HASSAN YOUSEF: This could happen if a Christian person will go talk to them
about the reality of Islam. They put Christians on the enemy list anyway, before you talk
to them about Islam. So if you go to them and tell them, as a Christian, they will be
offended immediately and they will hate you and this will definitely increase the vacuum
between both religions but what made someone like me change?
Years ago, years ago, when I was there, God opened my eyes, my mind also, and I
became a completely different person. So now, I can do this duty, while you as
Christians can help me do it, but maybe you wouldn't be able to. (Muslims) have no
excuse now.

JONATHAN HUNT: How difficult a process has this been for you to effectively walk
away from your family, leave your home behind? How difficult is that?
MOSAB HASSAN YOUSEF: Taking your skin off your bones, that's what happened. I
love my family, they love me. And my little brothers, theyre like my sons. I raised them.
Basically, it was the biggest decision in my life.
I left everything behind me, not only family. When you decide to convert to Christianity
or any other religion from Islam, it's not (enough) to just say goodbye and leave, you
know? It's not like that. You're saying goodbye to culture, civilization, traditions, society,
family, religion, God what you thought was God for so many years! So it's not easy.
It's very complicated. People think it's that easy, like it doesn't matter. Now I'm here in
the U.S. and I got my freedom and it's great, but at the same time, nothing is like family,
you know. To lose your family
JONATHAN HUNT: Have you lost your family?
MOSAB HASSAN YOUSEF: My family is educated and it was very difficult for them.
They asked me many times, especially for the first two days, to keep my faith to myself
and not go to the media and announce it.
But for me it was a duty from God to announce his name and praise him (around) the
world because my reward is going to be that he's going to do the same for me. So I did
it, basically, as a duty. I (wonder) how many people can do what I can do today? I didn't
find any.
So, I had to be strong about that. That was very challenging. That was the most difficult
decision in my life and I didn't do it for fun. I didn't do it for anything from this world. I did
it only for one reason: I believed in it. People are suffering every day because of wrong
ideas. I can help them get out of this endless circle ... the track the devil (laid) for them.
JONATHAN HUNT: Have you spoken to your father recently?
MOSAB HASSAN YOUSEF: There is no chance to communicate with my father
because he's in jail now and there is (sic) no phones in the jail to communicate with him.
JONATHAN HUNT: Have other members of your family told you how he's reacted?
MOSAB HASSAN YOUSEF: They've visited him from time to time. Till this moment, I
don't know his reaction exactly but I'm sure he's very sad (over) a decision like this. But
at the same time, he's going to understand, because he knows me and he knows that I
don't make any decisions without (believing strongly in them).
JONATHAN HUNT: Is it making his life more difficult among fellow Hamas members?
MOSAB HASSAN YOUSEF: Definitely. My family, including my father, had to carry this
cross with me. It wasn't their choice. It was my choice, but they had to carry this cross
with me and I ask God I pray for (my father), all my brothers and my sisters here in

this church, praying all the time for them 'God, open their eyes, their minds, to come
to Christ. And bless them because they had to carry this cross with me.'
JONATHAN HUNT: Tell me about Hamas and the way it works. Is Hamas a purely
Islamic religious organization as you see it, and that's where, in your eyes, its faults lie,
or are there other parts of it which are a problem for you? Or is Hamas a good
organization? What is Hamas to you?
MOSAB HASSAN YOUSEF: If we talk about people, there are good people
everywhere. Everywhere. I mean, good people that God created.
Do they do their own things? Yes, they do their own things. I know people who support
Hamas but they never got involved in terrorist attacks, for example ... They follow
Hamas because they love God and they think that Hamas represents God. They dont
have knowledge, they don't know the real God and they never studied Christianity. But
Hamas, as representative for Islam, it's a big problem.
The problem is not Hamas, the problem is not people. The root of the problem is Islam
itself as an idea, as an idea. And about Hamas as an organization, of course, the
Hamas leadership, including my father, they're responsible; they're responsible for all
the violence that happened from the organization. I know they describe it as reaction to
Israeli aggression, but still, they are part of it and they had to make decisions in those
operations against Israel, (for) which there was the killing of many civilians.
JONATHAN HUNT: Do you believe Israel blameless in the conflict?
MOSAB HASSAN YOUSEF: Occupation is bad. I can't say Israel I'm not against
any nation. We can't say Israelis, we can't say Palestinians, we're talking about
ideas. Israel has the right to defend itself, nobody can (argue) against this. But
sometimes they use (too much) aggression against civilians. Sometimes many
civilians were killed because those soldiers weren't responsible enough, how
they treat people at the checkpoints.
My message even to the Israeli soldiers: at least treat people in a good way at the
checkpoints. You don't have to look really bad and it's not about nations, it's about just
wrong ideas on both sides and the only way for two nations really to get out of the
endless circle is to know the principles that Jesus brought to this earth: grace, love,
forgiveness. Without this, they will never be able to move on, or break this endless
circle.
JONATHAN HUNT: You've seen your father jailed, you've been in prison yourself.
You've seen Hamas carry out acts of terror against Israelis, and yet you say everybody
needs to rise above that?
MOSAB HASSAN YOUSEF: Definitely. This is the only choice. Nobody has magic
power to do something for the Middle East. No one. You can ask any politician here in
the U.S., you can ask any Palestinian politician or Arab politician, Israeli leaders; no

one, no one can do anything. Even if they believe in peace now: they're part of the
game.
They're part of the trick. They can't, even if you find a brave person, like Rabin, who was
called by an Israeli to make peace with the Palestinians and give them a state, no one,
even if you find a strong leader, they can't do this. You can't force an independent
country to give another country independence. (Especially when) the other country
wants to destroy it.
Everybody is hurt. Israeli soldiers, they lost their friends. Palestinians, they lost their
children, their fathers. (There are) many people in prison still, and many people were
killed. Thousands. So everybody will never forget this. If they want to keep looking to
the past, they will never get out of this circle. The only way to start (is just by) moving
on. They were born under the occupation as Palestinians.
The last two generations, it's not their choice. The new generations from Israel if we
say disregarding the existence of Israel is right or wrong, what's the guilt of those people
who were born in Israel and they have no other country to go to? It's their country now,
that's how they see it. And they are going to keep their resistance and defense against
whomever. (They will) say, 'Get out of this land!' So the only way is for both nations to
start to understand the grace, love and forgiveness of God, to be able to get out of this.
JONATHAN HUNT: Do you believe that Israel can ever strike a peace deal with Hamas?
MOSAB HASSAN YOUSEF: There is no chance. Is there any chance for fire to co-exist
with the water? There is no chance. Hamas can play politics for 10 years, 15 years; but
ask any one of Hamas' leaders, 'Okay, what's going to happen after that? Are you just
going to live and co-exist with Israel forever?' The answer is going to be no ... unless
they want to do something against the Koran. But it's their ideology and they can't just
say 'We're not going to do it.' So there is no chance. It's not about Israel, it's not about
Hamas: it's about both ideologies. There is no chance.
JONATHAN HUNT: Aren't you terrified that somebody is going to try to kill you for saying
these things which would be approved of according to parts of the Koran?
MOSAB HASSAN YOUSEF: They got to kill my ideas first, (and) that's it, they're already
out. So how are they going to kill my idea? How are they going to kill the opinions that I
have? ... They can kill my body, but they can't kill my soul.
JONATHAN HUNT: You're not afraid?
MOSAB HASSAN YOUSEF: As a human, you know, I can be very brave now, I'm not
thinking about it at this moment and I feel that God is on my side. But if this will be the
challenge, I ask God to give me enough strength.
JONATHAN HUNT: Have you been threatened?

MOSAB HASSAN YOUSEF: No, not really. Honestly, most Muslims and Muslim leaders
here in the U.S. community, European communities, they are trying to get ahold of me.
They are calling my famiily, my mother, and asking for my contacts. They are telling her,
'We want to help him.'
JONATHAN HUNT: They think you need help?
MOSAB HASSAN YOUSEF: Yeah, they think that Christians took advantage of me, and
this is completely wrong. I've been a Christian for a long time before they knew, or
anyone knew. I love Jesus, I followed him for many years now. It wasn't a secret for
most of the time, and this time I just did it to glorify the name of God and praise him.
They're not dealing with a regular Muslim. They know that I'm educated, they know that
I studied, they know that I studied Islam and Christianity. When I made my decision, I
didn't make it because someone did magic on me or convinced me. It was completely
my decision.
JONATHAN HUNT: Do you miss Ramallah?
MOSAB HASSAN YOUSEF: Definitely. You've been there and you know how a
wonderful country (it is). Very, very beautiful. It's a very small spot and it has
everything this is why people are fighting for that piece of land. I definitely
miss Ramallah. Jereusalem. The Old City.
JONATHAN HUNT: Do you believe you will ever be able to go back?
MOSAB HASSAN YOUSEF: I think I belong to that land, and sooner or later I'm going
to go back, no matter what. If they want to kill me, they (will) do whatever they want to
do. I have a family there, they love me, they completely support me now with my
decisions. Maybe they don't want me to talk to the media but they believe that I made a
decision that I completely believe in. So they support me, so I love my family. I'm going
to go back there again one day. I love my town.
JONATHAN HUNT: Do you think you'll ever go back to a Middle East living in peace?
MOSAB HASSAN YOUSEF: There will be a 100-person peace when Jesus comes
back, when he judges everybody. His kingdom's going to be 1,000 years and it's going
to be completely peaceful and it's going to be the kingdom of God.
JONATHAN HUNT: What is your basic message to any Muslim listening to this right
now?
MOSAB HASSAN YOUSEF: My message to them is, first of all, to open their minds.
They were born to Muslim families this is how they got Islam and this is just like ...
any other religion, like growing up (in) a Christian family, or growing up (in) a Jewish
family.

So my point is that I want those people to open their eyes, their minds, to start to
understand and imagine that they weren't born for a Muslim family. And use their minds.
Why did God give them minds? Open their hearts. Read the Bible. Study their religion. I
want to open the gate for them, I want them to be free. They will find a good life on earth
just by following God and they're also going to guarantee the other life.

SUNSTAR
How on Earth did this kid get into the country in the first
place? Of all the stupid, idiotic things our government could
possibly do! Let me ask the GOLDEN QUESTION:
Just what did all of our soldiers in the Middle East shed
blood, sweat, and tears for? Is Nelson Rockefeller correct in
stating that the whole war in Iraq and Afghanistan is a hoax
because he had already set up the kingdom in America
highlighted Paul Sperrys book: INFILTRATION?
Ask about the history of HAMAS AMERICAN FUNDING!
Beginning with Bill Clinton and Janet Reno!

FBI gave funds to Hamas

http://www.pittsburghlive.com/x/tribune-review/terrorism/s_158660.html
WASHINGTON -- While President Clinton was trying to broker an elusive peace
between Israelis and Palestinians, the FBI secretly was funneling money to suspected
Hamas figures to determine if the militant group would use it for terrorist attacks,
according to interviews and court documents.
The counter-terrorism operation in 1998 and 1999 was run out of the FBI's Phoenix
office in cooperation with Israeli intelligence and was approved by Attorney General
Janet Reno, FBI officials have told The Associated Press.
Several thousand dollars in U.S. money was sent to suspected terror supporters during
the operation as the FBI tried to track the flow of cash through terror organizations, the

FBI said in a rare acknowledgment of an undercover sting that never resulted in

prosecutions.
"This was done in conjunction with permission from the attorney general for an ongoing
operation, and Israeli authorities were aware of it," the bureau said.
One of the FBI's key operatives, who has had a falling out with the bureau, provided an
account of the operation at a friend's closed immigration court proceeding. AP obtained
and reviewed the court documents.
Arizona businessman Harry Ellen testified that he permitted the FBI to bug his home,
car and office. He also allowed his Muslim foundation's activities in the Gaza Strip to be
monitored by agents. Ellen also arranged a peace meeting among major Palestinian
activists and gained personal access to Palestinian leader Yasser Arafat during more
than four years of cooperation with the FBI.
Ellen's FBI handler in the late 1990s was Kenneth Williams, an agent who later became
famous for writing a pre-9/11 memo to FBI headquarters warning there were Arab pilots
training at U.S. flight schools. The warning went unheeded.
Ellen, a Muslim convert, testified that he was taking a trip to the Gaza Strip to bring
doctors to the region in summer 1998 when Williams asked him to provide money to a
Hamas figure.
Williams wanted "the transfer of American funds to some of the terrorist groups for
violent purposes," Ellen testified to the immigration court in a closed session in June
2001.
At the same time, Clinton and his negotiators were trying to reinvigorate stalled Mideast
peace talks -- an effort that culminated in the Wye Accords in October 1998.
Then-national security adviser Sandy Berger said in an interview that the White House
wasn't informed of the FBI activities.
"We were not aware of any such operation," Berger said.
Ellen testified the operation ended abruptly in early 1999, when he and Williams had a
series of disagreements over the operation. The disputes began when Ellen angered
the FBI by having an affair with a Chinese woman suspected of espionage.
FBI officials said they tried to get Ellen to end the relationship and that his work was
terminated for having failed to follow rules.

Melvin McDonald, the former U.S. attorney in Phoenix who has championed Ellen's
cause, said the FBI's abrupt end to the investigation squandered an important
intelligence opportunity.
"Harry had been a tremendous resource to the bureau," McDonald said. "We did not
have that many people like him with connections like that to the Middle East."
Former Senate Intelligence Committee Chairman Dennis DeConcini, another supporter
of Ellen, said the businessman's work could have greatly assisted the FBI.
"I know some of the wonderful cases and sheer positives the FBI has done. But when it
comes to spying and espionage, they really screwed up, and I think Harry is one of
those cases," the former Arizona senator said.
The Justice Department inspector general is investigating some allegations that came to
light in Ellen's case -- including that FBI agents in sensitive probes moonlighted at
private companies that were using FBI assets or investigative subjects to assist their
personal interests.
Ellen, a stepson of an Air Force intelligence officer, had worked for U.S. intelligence
since the 1970s as an "asset" -- a private citizen paid to provide information or to
conduct specific tasks. His work started in Latin America and also involved China and
the Middle East.
Ellen, whose step-grandfather was Jewish, converted to Islam in the 1980s and began
helping poor Palestinians.
In 1994, Ellen began assisting the FBI Phoenix office, which had become a hotbed of
cases involving terrorism and intelligence because of a large, active Muslim population;
the proximity to the U.S. southern border; and a large concentration of aerospace
companies.
Ellen testified that by 1996, his FBI-monitored humanitarian work had won him
unprecedented access to Muslim militants from groups fighting for Palestinian
independence, including Hamas.
In a rare meeting that Ellen organized, the major groups created an informal alliance to
ensure safe passage to any foreigner providing humanitarian assistance, Ellen testified.
Ellen was named a spokesman and met several times with Arafat.
Ellen also created a foundation named al-Sadaqa to further his work by bringing sewing
machines, eyeglasses and other assistance to Palestinians.
Impressed by the extraordinary access, Williams insisted the new foundation be funded,
in part, by the FBI, Ellen testified.

In an interview, he said he agreed to help the FBI "not as a snitch but as a good
American."
"I agreed to cooperate with the FBI in the facilitation of the peace process that would
lead to an independent Palestinian state, stopping the half-century of violent and
oppressive occupation," Ellen said. "During that period of time I never did anything nor
would I cooperate in any way to harm the Palestinian or Israeli people."
He testified that Williams provided him between $3,000 and $5,000 in summer 1998
and instructed him to give it to a Hamas figure named Ismail Abu Shanab, who was
killed earlier this year by Israeli forces in retaliation for a Hamas terrorist strike.
"He (Williams) said they (the dollars) would be for terrorist activities," Ellen testified.
Abu Shanab, instead, distributed the money to Palestinian orphanages and health-care
facilities, Ellen said.
Ellen testified that Williams told him he hoped the transfer would lead to more money
exchanges through terror groups, but Ellen refused to earmark money for terrorism. He
testified he later learned another FBI operative had offered Hamas and Palestinian
figures larger amounts for terrorist attacks.
The court testimony shows Ellen allowed his home, office and car in Arizona to be
bugged so that the FBI could listen, without a warrant, to visiting Palestinians or
Americans if they discussed illegal activity.
The FBI said it commonly uses such recordings.
"Consensual monitoring does not require a warrant. In cases where the FBI conducts
consensual monitoring, the one party is aware he is being recorded," the agency said.
One of those to visit Ellen in Arizona was Palestinian Gen. Mahmoud Abu Marzouq, an
Arafat ally who oversaw Palestinian civil defense. Marzouq became involved with Ellen's
foundation and later wrote a letter praising him.
"The United States will, in my opinion, lose a valuable opportunity for communication in
the Middle East if Abu Yusef (Ellen's Muslim name) is further restricted from his
honorable efforts for the part of the widows, orphans and handicapped and the elderly in
Palestine," Marzouq wrote.
Copyright 2006
Why Clinton Slept
http://www.vote.com/magazine/columns/dickmorris/column40105429.phtml

by Dick Morris
Last month, President Bush shut down three U.S.-based "charities" accused
of funneling money to Hamas, a terrorist organization that last year alone
was responsible for at least 20 bombings, two shootings and a mortar attack
that killed 77 people. These "charities" - The Holy Land Foundation for Relief
and Development, the Global Relief Foundation and the Benevolence
International Foundation - raised $20 million last year alone.
But the information on which Bush largely relied to act against these
charities was taped nine years ago, in 1993. FBI electronic eavesdropping
had produced compelling evidence that officials of Hamas and the Holy Land
Foundation had met to discuss raising funds for Hamas training schools and
establishing annuities for suicide bombers' families - pensions for terrorists.
Why didn't Clinton act to shut these people down?
In 1995 and 1996, he was advised to do just that. At a White House strategy
meeting on April 27, 1995 - two weeks after the Oklahoma City bombing the president was urged to create a "President's List" of extremist/terrorist
groups, their members and donors "to warn the public against wellintentioned donations which might foster terrorism." On April 1, 1996, he
was again advised to "prohibit fund-raising by terrorists and identify terrorist
organizations," specifically mentioning the Hamas.
Inexplicably, Clinton ignored these recommendations. Why? FBI agents have
stated that they were prevented from opening either criminal or nationalsecurity cases because of a fear that it would be seen as "profiling" Islamic
charities. While Clinton was politically correct, the Hamas flourished.
Clinton did seize any bank accounts of the terrorist groups themselves, but
his order netted no money since neither al Qaeda nor bin Laden were
obliging enough to open accounts in their own names.
Liberals felt that the civil rights of suspected terrorists were more important
than cutting off their funds. George Stephanopoulos, the ankle bracelet that
kept Clinton on the liberal reservation, explains in his memoir "All Too
Human" that he opposed the proposal to "publish the names of suspected
terrorists in the newspapers" with a "civil liberties argument" and by pointing
out that Attorney General Janet Reno would object.
So five years later - after millions have been given to terrorist groups
through U.S. fronts - the government is finally blocking the flow of cash.

Political correctness also doomed a separate recommendation to require that

drivers' licenses and visas for noncitizens expire simultaneously so that
illegal aliens pulled over in traffic stops could be identified and (if
appropriate) deported. Stephanopoulos cited "potential abuse and political
harm to the president's Hispanic base," and said that he'd killed the idea by
raising "the practical grounds of prohibitive cost."
Had Clinton adopted this recommendation, Mohammed Atta might have
been deported after he was stopped for driving without a license three
months before be piloted an American Airlines jet into the World Trade
Center .
Nothing so illustrates the low priority of terrorism in Clinton's first term than
the short shrift he gave the 1993 bombing of the World Trade Center, the
first terrorist attack on U.S. soil. Six people were killed and 1,042 injured;
750 firefighters worked for one month to contain the damage. But Clinton
never visited the site. Several days after the explosion, speaking in New
Jersey, he actually "discouraged Americans from overacting" to the Trade
Center bombing.
Why this de-emphasis of the threat? In Sunday's New York Times,
Stephanopoulis explains that the 1993 attack "wasn't a successful
bombing. . . . It wasn't the kind of thing where you walked into a staff
meeting and people asked, what are we doing today in the war against
terrorism?"
In sharp contrast, U.S. District Court Judge Kevin Duffy, who presided over
the WTC-bombing trial, noted that the attack caused "more hospital
casualties than any other event in domestic American history other than the
Civil War."
But Stephanopoulos was just the hired help. Clinton was the president and
commander-in-chief. For all of his willingness to act courageously and
decisively - against the advice of his liberal staff - on issues like deficit
reduction and welfare reform, he was passive and almost inert on terrorism
in his first term.
It wasn't until 1998 that Clinton finally got around to setting up a post of
Counter Terrorism Coordinator in the National Security Council.
Everything was more important than fighting terrorism. Political correctness,
civil liberties concerns, fear of offending the administration's supporters,
Janet Reno's objections, considerations of cost, worries about racial profiling

and, in the second term, surviving impeachment, all came before fighting
terrorism.

FBI Sent Money to Hamas During Clinton Years

http://www.foxnews.com/story/0,2933,99319,00.html
WASHINGTON In an undercover operation run in the shadow of Mideast peace
talks, the FBI secretly sent money to suspected Hamas (search) figures to see if
the militant Palestinian group would divert it from charitable purposes to terrorist
attacks, according to interviews and court documents.
The counterterrorism operation in 1998 and 1999 was run out of the FBI's Phoenix
office in cooperation with Israeli intelligence and was approved by Attorney General
Janet Reno (search), FBI officials told The Associated Press.
[Fox News confirmed the report Tuesday morning.]
The money, usually just a couple of thousand dollars, was sent to suspected terror
supporters during the operation as the FBI tried to track the flow of cash through terror
organizations, the FBI said in a rare acknowledgment of an undercover sting.
"This was done in conjunction with permission from the attorney general for an ongoing
operation, and Israeli authorities were aware of it," the bureau said.
The FBI said the money was given through one of its operative's charities to see if it
would be diverted for terrorism and the amounts were kept small so it couldn't be used
to fund a major attack. Court testimony indicates in one case a Hamas figure used the
sting money to help orphans.
One of the FBI's key operatives, who had a falling out with the bureau, provided an
account of the operation at a friend's closed immigration court proceeding. AP obtained
and reviewed the court documents.
Arizona businessman Harry Ellen testified he permitted the FBI to bug his home, car
and office, allowed his Muslim foundation's activities in the Gaza Strip to be monitored
by agents, arranged a peace meeting between major Palestinian activists and gained
personal access to Yasser Arafat during more than four years of cooperation with the
FBI.
Ellen's FBI handler in the late 1990s was Kenneth Williams, an agent who later became
famous for writing a pre-Sept. 11 memo to FBI headquarters warning there were Arab
pilots training at U.S. flight schools. The warning went unheeded.

Ellen, a Muslim convert, testified he was taking a trip to the Gaza Strip to bring doctors
to the region in summer 1998 when Williams asked him to provide money to a Hamas
figure.
Williams wanted "the transfer of American funds to some of the terrorist groups for
violent purposes," Ellen testified to the immigration court in a closed June 2001 session.
At the same time, President Clinton and his negotiators were trying to reinvigorate
stalled Mideast peace talks, an effort that culminated in the Wye Accords in October
1998.
Clinton's national security adviser, Sandy Berger, said in an interview that the White
House wasn't informed of the FBI activities. "We were not aware of any such operation,"
Berger said.
Clinton's anti-terror czar, Richard Clarke, said he too was unaware of the operation. "I
never heard of it, but it's creative," he said.
Ellen testified the operation ended abruptly in early 1999 when he and Williams had a
series of disagreements over the operation, disputes that began when Ellen angered
the FBI by having an affair with a Chinese woman suspected of espionage.
FBI officials said they tried to get Ellen to end the relationship and his work was
terminated for failing to follow rules.
Melvin McDonald, the former U.S. attorney in Phoenix who has championed Ellen's
cause, said the FBI's abrupt end to the investigation squandered an important
intelligence opportunity.
"Harry had been a tremendous resource to the bureau," McDonald said. "We did not
have that many people like him with connections like that to the Middle East."
Former Senate Intelligence Committee chairman Dennis DeConcini, D-Ariz., another
Ellen supporter, said Ellen's work could have greatly assisted the FBI.
"I know some of the wonderful cases and sheer positives the FBI has done. But when it
comes to spying and espionage they really screwed up, and I think Harry is one of those
cases," DeConcini said.
The Justice Department inspector general is investigating some allegations that came to
light in Ellen's case, including that FBI agents in sensitive probes moonlighted at private
companies that were using FBI assets or investigative subjects to assist their personal
interests.

Ellen, stepson of an Air Force intelligence officer, had worked for U.S. intelligence since
the 1970s as an "asset," a private citizen paid to provide information or conduct specific
tasks. His work started in Latin America and also involved China and the Middle East.
Ellen, whose step-grandfather was Jewish, converted to Islam in the 1980s and began
helping poor Palestinians.
In 1994, he began assisting the FBI Phoenix office, which had become a hotbed of
cases involving terrorism and intelligence because of a large, active Muslim population,
the proximity to the southern U.S. border and a large concentration of aerospace
companies.
Ellen testified that by 1996 his humanitarian work, monitored by the FBI, had won him
unprecedented access to Muslim militants from groups fighting for Palestinian
independence, including Hamas.
In a rare meeting Ellen organized, he testified, the major groups created an informal
alliance to ensure safe passage to any foreigner providing humanitarian assistance.
Ellen was named a spokesman and met several times with Arafat.
Ellen also created a foundation named al-Sadaqa to further his work by bringing sewing
machines, eyeglasses and other assistance to Palestinians.
Impressed by the extraordinary access, Williams insisted the new foundation be funded
in part by the FBI, Ellen testified.
In an interview, he said he agreed to help the FBI "not as a snitch but as a good
American."
"I agreed to cooperate with the FBI in the facilitation of the peace process that would
lead to an independent Palestinian state, stopping the half-century of violent and
oppressive occupation," Ellen said.
"During that period of time I never did anything nor would I cooperate in any way to
harm the Palestinian or Israeli people."
He testified that Williams provided him between $3,000 and $5,000 in the summer of
1998 and instructed him to give it to a Hamas figure named Ismail Abu Shanab, who
was killed earlier this year by Israeli forces in retaliation for a Hamas terrorist strike.
"He (Williams) said they (the dollars) would be for terrorist activities," Ellen testified. Abu
Shanab distributed the money to Palestinian orphanages and health care facilities, he
said.

Ellen testified that Williams told him he hoped the transfer would lead to more money
exchanges through terror groups but Ellen refused to earmark money for terrorism. He
testified he later learned another FBI operative had offered Hamas and Palestinian
figures larger amounts for terrorist attacks.
The court testimony shows Ellen allowed his home, office and car in Arizona to be
bugged so the FBI could listen, without a warrant, to visiting Palestinians or Americans if
they discussed illegal activity.
The FBI said it commonly uses such recordings. "Consensual monitoring does not
require a warrant. In cases where the FBI conducts consensual monitoring, the one
party is aware he is being recorded," it said.

FBI 'offered money to Hamas'

http://news.bbc.co.uk/2/hi/middle_east/3170972.stm

The US declared Hamas a "terrorist organisation" in 1997

The FBI secretly funnelled thousands of dollars to Palestinian
militant group Hamas during the Clinton era in a bid to track terror
funds, it has emerged.
But the sting failed when the Americans' key player, Arizona businessman
and Muslim convert Harry Ellen, fell out with his handlers, the Associated
Press news agency reported.
Admirers of Mr Ellen have accused the FBI of squandering a valuable chance
to infiltrate Palestinian organisations.
As a charity worker, he had been able to meet senior Hamas figures and also
had personal access to Palestinian leader Yasser Arafat.
Details of Mr Allen's work emerged when he testified at a friend's
immigration court proceedings.
We did not have that many people like him with connections like that
to the Middle East

Melvin McDonald
former Phoenix US attorney
The FBI itself confirmed the aborted operation, according to the AP, saying it
had acted with the permission of US Attorney General Janet Reno and had
worked alongside Israeli intelligence.
However, President Bill Clinton's National Security Adviser, Sandy Berger, has
said the White House was not informed of the FBI's activities.
Whilst Mr Clinton was negotiating the Wye peace accords between Israel and
the Palestinians in 1998, the FBI was asking Mr Ellen to provide money to
Hamas during a trip to the Gaza Strip where he was due to convey doctors.
According to AP, Mr Ellen also allowed the FBI to monitor his Muslim
foundation's work in Gaza as well as bug his car, home and business back in
Arizona.
The businessman, who was aiding the FBI as far back as 1994, said later
that he had agreed to work for them "not as a snitch but as a good
American".
Love affair
During his 1998 trip to Gaza, Mr Ellen told the court that he had handed over
between $3,000 and $5,000 in FBI funds to prominent Hamas figure Ismail
Abu Shanab, killed in an Israeli air strike earlier this year.
Mr Ellen's charity work was aimed at helping poor Palestinians
His handler had told him that the money would be used by Hamas for
"terrorist activities" but, in the event, Mr Shanab distributed it to Palestinian
orphanages and health care facilities.
Mr Ellen testified that he had heard later of another FBI operative who
offered Hamas larger amounts for "terrorist attacks".
His co-operation with the FBI ended abruptly in 1999 after a series of
disagreements which began when it criticised Mr Ellen for having an affair
with a Chinese woman suspected of espionage.
One supporter of Mr Ellen, former attorney Melvin McDonald, said the FBI
had thrown away a valuable source of intelligence.

"Harry had been a tremendous resource to the bureau," he said.

"We did not have that many people like him with connections like that to the
Middle East."
The US declared Hamas a "terrorist organisation" in 1997.
THE HAMAS CHARTER

March 23, 2006

Intelligence and Terrorism Information

Center
at the Center for Special Studies
(C.S.S)

The Hamas Charter (1988)

Overtly anti-Semitic and anti-West, radical Islamic in outlook, it stresses Hamas' ideological
commitment to destroy the State of Israel through a long-term holy war (jihad).
Overview

On January 25, 2006, the day Palestinian Legislative Council elections were held,
Dr. Mahmoud al-Zahar, senior Hamas leader in the Gaza Strip and candidate for the
post of foreign minister, stated that Hamas was committed to the ideology of its
1988 charter . He noted emphatically that the movement [would] not change a
single word in its charter, which calls for the destruction of the State of Israel ,
and would not become a purely political movement, but quite the opposite, it would
continue its policy of resistance (i.e., terrorist attacks) (Reuters, Gaza , January
25).
The Hamas charter referred to by Mahmoud al-Zahar was formulated during the
first year of the previous round of the violent Israeli-Palestinian confrontations
(1987-1993). It was edited and approved by Ahmad Yassin , the movement's

founder and leader (who died in a targeted killing in March 2004), and issued on
August 18, 1988. It is Hamas's most important ideological document and as of
this writing, copies continue to be circulated in the Palestinian Authorityadministered territories. It makes extensive use of Islamic sources (the Qur'an and
hadith 1) to assure its religious Islamic basis.

The main points of the Hamas charter:

The conflict with Israeli is religious and political : The Palestinian problem is a
religious-political Muslim problem and the conflict with Israel is between Muslims
and the Jewish infidels.
All Palestine is Muslim land and no one has the right to give it up : The land of
Palestine is sacred Muslim land and no one, including Arab rulers, has the authority
to give up any of it.
The importance of jihad (holy war) as the main means for the Islamic
Resistance Movement (Hamas) to achieve its goals : An uncompromising jihad
must be waged against Israel and any agreement recognizing its right to exist must
be totally opposed. Jihad is the personal duty of every Muslim .
The importance of fostering the Islamic consciousness: Much effort must be
invested fostering and spreading Islamic consciousness by means of education
[i.e., religious-political indoctrination ] in the spirit of radical Islam, based on the
ideology of the Muslim brotherhood .
The importance of Muslim solidarity : A great deal of importance is given to
Muslim solidarity, one of whose manifestations is aid to the needy through the
establishment of a network of various charitable societies.
In addition, the charter is rife with overt anti-Semitism : According to the charter,
the Jewish people have only negative traits and are presented as planning to take
over the world. The charter uses myths taken from classical European and Islamicbased anti-Semitism.

The translation of the charter, which follows below, is of the 2004 edition, published
in an ornate format in Qalqilya 2 and issued to celebrate the 17 th anniversary of the
movement's founding. Copies were among the documents found by IDF soldiers in
the Islamic Club in Qalqilya on September 27, 2005.
Sheikh Ahmad Yassin's picture appears on the front cover of the 2004 Qalqilya
edition. A picture of his temporary successor, Abd al-Aziz Rantisi (who died in a

targeted killing in April 2004) appears on the back cover. On the insides of the front
and back covers there are pictures of prominent terrorists who died during the
confrontation ( shaheeds ) and of jailed Qalqilya residents . Some of the
Qalqilya terrorists took part in suicide bombing attacks, for example, Sa'id Hutri ,
who blew himself up at the Dolphinarium Club in Tel Aviv on June 1, 2001, killing
21 civilians and wounding 83, the overwhelming majority of all of whom were
teenagers; and Abd al-Rahman Hammad , who was head of the Hamas terroristoperative infrastructure in Qalqilya and who planned and organized the attack.
The Hamas charter frontispiece, 2004 Qalqilya edition
The inscription reads The star shaheed [team] of the [Izzedine] al-Qassam
Battalions of the Qalqilya district

The following sections include:

An analysis of the Hamas charter
A translation ( Appendix A )
The original Arabic document ( Appendix B )

Analysis of the Hamas Charter

The Hamas charter is the document which sets out the movement's ideology as it
was formulated and honed by its founders. It includes its radical Islamic world view
(conceived by the Muslim Brotherhood in Egypt), which has basically not changed in
the 18 years of its existence. 3 With regard to Israel , the charter's stance is
uncompromising. It views the problem of Palestine as a religious-political
Muslim issue , and the Israeli-Palestinian confrontation as a conflict between
Islam and the infidel Jews . Palestine is presented as sacred Islamic land
and it is strictly forbidden to give up an inch of it because no one (including ArabMuslim rulers) has the authority to do so. With regard to international relations, the
charter manifests an extremist worldview which is as anti-Western as Al-Qaeda and
other terrorist organizations.
That worldview brings in its wake the refusal to recognize the State of Israel's
right to exist as an independent, sovereign nation, the waging of a ceaseless
jihad (holy war) against it and total opposition to any agreement or
arrangement that would recognize its right to exist . At the beginning of the
charter there is a quotation attributed to Hassan Al-Bana, 4 that Israel will arise

and continue to exist until Islam wipes it out, as it wiped out what went before
.

Overt, vicious anti-Semitism, with both Islamic and Christian-European

origins , is used extensively throughout the document. The all-out holy war (jihad)
against the Jewish people is legitimized by presenting the Jews in a negative light
and demonizing them as wanting to take over not only the Middle East but also the
rest of the world. One of the jihad's deadliest manifestations is suicide bombing
terrorism , which was developed mainly by Hamas during the 1990s and has
become its leading strategy in the ongoing violent Israeli-Palestinian confrontation.

The Jews are also presented as worthy of only humiliation and lives of misery. That
is because, according to the charter, they angered Allah, rejected the Qur'an and
killed the prophets (the relevant Qur'an verse from Surah Aal-Imran is quoted at the
beginning of the charter ). The document also includes anti-Semitic myths taken
from The Protocols of the Elders of Zion (mentioned in Article 32) regarding
Jewish control of the media, the film industry and education (Articles 17 and 22).
The myths are constantly repeated to represent the Jews as responsible for the
French and Russian revolutions and for all world and local wars: No war takes
place anywhere without the Jews' being behind it (Article 22). The charter
demonizes the Jews and describes them as brutally behaving like Nazis toward
women and children (Article 29).

The charter views the jihad (holy war) as the way to take all of Palestine from
the Jews and to destroy the State of Israel , and Hamas's terrorist attacks are
seen as links in the jihad chain carried out during the Israeli-Palestinian conflict.
Article 15 states that the jihad to liberate Palestine' is the personal duty [ fardh ayn
] of every Muslim, an idea expounded by Abdallah Azzam. 5

The charter emphasizes the battle for Muslim hearts and minds, or, the spread of
Islamic consciousness ( al-wa'i al-islami ), within three main spheres: the
Palestinians, the Arab Muslims and the non-Arab Muslims (Article 15). The process
of fostering and spreading that Islamic consciousness ( amaliyyat al-taw'aiyah ) is
defined as its most important mission. Clerics, educators, men of culture, those
active in the media and information services and the generally educated
public all have the responsibility to carry it out ( ibid .).

As part of the battle for hearts and minds, the charter places a special emphasis
on education [i.e., indoctrination] in the spirit of radical Islam, based on the
ideas of the Muslim Brotherhood . Fundamental changes must be made, it

states, in the educational system in the PA-administered territories: it must be

purified, purged of the influences of the ideological invasion brought by the
Orientalists and missionaries (Article 15), and the younger generation should be
given a radical Islamic education based exclusively on the Qur'an and the Muslim
tradition (the Sunnah). The means used for ideological recruitment, as detailed in
the charter, are books, articles, publications, sermons, flyers, folk songs, poetic
language, songs, plays, etc. When imbued with correct Islamic belief and culture,
they become an important means of raising morale and building the psychological
fixation and emotional strength necessary for a continuing liberation campaign
(Article 19).

The charter stresses the importance of Muslim solidarity according to the

commands of the Qur'an and Sunnah, especially in view of the confrontation taking
place between Palestinian society and the terrorist Jewish enemy, described as
Nazi-like . One of the expressions of that solidarity is aid to the needy (one of
whose main manifestations is the network of various charitable societies set up by
Hamas, which integrate social activities and support of terrorism).

The charter makes a point of the ideological difference between Hamas, with
its radical Islamic world view, and the secularly-oriented The Palestine
Liberation Organization , but pays lip service to the need for Palestinian unity
needed to face the Jewish enemy. It notes that an Islamic world view completely
contradicts The Palestine Liberation Organization's secular orientation and the idea
of a secular Palestinian state. Nevertheless, notes the charter, Hamas is prepared to
aid and support every nationalist trend working to liberate Palestine and is not
interested in creating schisms and disagreements (Article 27).

The Hamas charter vs. its election platform

A comparison of the Hamas charter and its January 3, 2006 platform during the
Palestinian Legislative Council election campaign shows that it did not moderate
or disguise its commitment to the charter's basic principles in any meaningful
way . Its radical Islamic position was reiterated in both the platform and the
statements of its leaders during the campaign, as was its commitment to
resistance (i.e., terrorism), proof of the charter's relevance to the present time .
Nevertheless, there is a difference between the two documents, primarily in
emphases and the way certain issues are dealt with. The charter relates to Hamas's
fundamental ideological position, while the election platform stresses its desire for
civilian reform in areas such as corruption, the war on unemployment, the status of
women, political rights, etc. They are all dealt with as part of Change and Reform (

al-Taghyir wal-Islah ), Hamas's slogan and the name of its political party during the
elections.
Appendix A
Translation
The Charter of the Islamic Resistance Movement Hamas

Palestine, 1 st day of Muharram, 1409 years after the hejira , August 18, 1988. 7
In the name of Allah the merciful and compassionate
[Ye faithful,] you are the best of nations ever given to mankind: you command the doing of
good, forbid the doing of evil and believe in Allah. It would have been better for the People
of the Book 8 if they had [also] believed [in Allah]. [Although] some of them are believers,
most of them are sinful. They will never [be able] to do you any harm, only [become] an
annoyance, even if they do try to fight you, they will [immediately] flee and then they will
not be rescued. Humiliation will follow them wherever they go, except if they grasp the rope
Allah extends to them and the rope [Muslim] men extend to them. Allah's wrath pours down
upon them and they will be stricken with poverty, and that because they denied the signs of
Allah and unjustly killed the prophets. It is their retribution for having disobeyed and
transgressed (Surah [3] Aal-Imran, Verses 110-112). 9
Israel will arise and continue to exist until Islam abolishes it, as it abolished what
went before, (the words of)the shaheed , imam Hassan al-Bana, 10 may Allah have
mercy upon him.
The world of Islam is going up in flames. [Therefore,] each one of us must pour water, if
only a drop, to extinguish [them] insofar as one can, without waiting for others. [So said]
Sheikh Amjad al-Zahawi, 11 may Allah have mercy upon him.
In the name of Allah the merciful and compassionate
Introduction
Praise be to Allah from whom we are seeking aid, mercy and guidance, on whom we rely
and to whom we pray. May a prayer and peace be upon the messenger of Allah, his family,
his friends, his companions, 12 those who have followed Him, those who have spread his
da'wah 13 and have kept his Sunnah, 14 [may] a prayer and peace [be upon them] always,

as long as heaven and earth exist. And to the matter at hand:

Listen, oh [Muslim?] people: in the midst of calamities and sea of suffering, from within the
heartbeats of the true believers and the purification of [their] hands and forearms before
prayer, from the awareness of duty and assent and obedience to the will of Allah, there
came the call [of our movement] and a meeting was organized, an assembly was
established, education 15 in the path of Allah came into being, and the will [power and] firm
determination to fulfill its function while overcoming all obstacles and difficulties, and [with]
continued preparation and the willingness to sacrifice everything held dear for the sake of
Allah.
Finally, the core [of the movement] was formed and began plowing its way through the
stormy sea of hopes and wishes, of longings and heartfelt desires, dangers and obstacles,
pains and challenges, at home [in Palestinian] and abroad.
The seed ripened and sprouted, and the plant took root in the soil of existence, far from the
sensation of fleeting emotions and despised haste. The Islamic Resistance Movement set
out to perform its duty, striding along the path of its lord. 16 It held hands with every jihad
warrior 17 for the sake of liberating Palestine . And the souls of its jihad warriors meet those
of the jihad warriors who have sacrificed their lives for the soil of Palestine since it was
conquered by the companions of the prophet of Allah, may Allah's prayer and blessing of
peace be upon them, and to this very day.
This is the charter of the Islamic Resistance Movement (Hamas). It reveals its face,
its identity, explains its position, makes its desires known, speaks of its hopes and
calls [upon those who hear] for aid, to support it and join its ranks. That is because our
battle against the Jews is great and fateful, and all honest means are necessary for it
. [The battle] is the [first] step which necessitates [taking] other steps after it. [It is] a
battalion, and [other] battalions from the great Arab and Muslim world must support it, one
after the other, to conquer the enemy and realize the victory of Allah. This is how we will
see them [i.e., the Arab/Muslim battalions] approaching from the horizon, [as it is written in
the Qur'an:] Shortly you will certainly know what he announces [Surah [38] Sad, Verse
88], [and in addition:] Allah wrote, indeed I will prevail, I and my messengers. Allah is
strong and mighty ([Surah 58] Al-Mujadalah, Verse 21) [and also] Say, this is my way. I
and those who follow me call l [upon you] for Allah with certainty.Glory be to Allah. I will
among those who join other gods with Allah see correctly, and may the name of Allah be
praised, and I will not be with those who join other gods with Allah [i.e., polytheists] ([Surah
12] Yusuf [Verse] 108).

Chapter One
Defining the [Hamas] movement
The ideological tenets
Article 1
The path of the Islamic Resistance Movement is the path of Islam, from which it draws its
principles, concepts, terms and worldview with regard to life and man. It turns to [Islam]
when religious rulings are required and asks [Islam] for inspiration to guide its steps.
The relationship between the Islamic Resistance Movement and the Muslim Brotherhood [
jama'at al-ikhwan al-muslimin 18]
Article 2
The Islamic Resistance Movement is the branch of the Muslim Brotherhood in Palestine .
The Muslim Brotherhood is a global organization and the largest Islamic movement in
modern times. It excels in profound understanding and has an exact, fully comprehensive
perception 19 [ shumuliyyah ] of all Islamic concepts in all areas of life: understanding and
thought, politics and economics, education and social affairs, law and government,
spreading [i.e., indoctrinating the tenets of radical] Islam [ da'wah ] and teaching, art and
the media, by that which is hidden and by martyrdom [ shahadah ] and in the other areas of
life.
Structure and composition [of the organization]
Article 3
The basic structure of the Islamic Resistance Movement is founded on Muslims who have
put their faith in Allah and worship him as is fit [as it is written in the Qur'an], I created the
jinns and humans only for the purpose that they worship me ([Surah 51] Al-Dhariyat [Verse]
56). They have recognized their duties towards themselves , their families and their
homeland. They have feared Allah in all these matters and flown the banner of jihad in the
faces of tyrants to expel them from the land [ al-bilad ], and to clean [the tyrants'] pollution
from the faithful, [and to remove] their malice and evil, [as it is written in the Qur'an] No
and again no, we show the truth to senselessness, and [the truth] will smash its head and it
will quickly fade away, [and you will be those who cry out your distress, in punishment for

the accounts you are related by] ([Surah 21] Al-Anbiyaa [Verse] 18).
Article 4
The Islamic Resistance Movement welcomes every Muslim who adopts its worldview and
its way of thinking, who adheres to its path, keeps its secrets, wishes to join its ranks to
fulfill the duty [sic], and Allah will grant him his reward.
The dimensions of time and space as they relate to the Islamic Resistance Movement
Article 5
The dimension of time for the Islamic Resistance Movement is [manifested in] the adoption
of Islam as a way of life. [Time] continues from the day the Islamic mission was born and
the first generation of the faithful who trod the path of righteousness [ al-salaf al-salih 20].
Allah is its purpose, the messenger [the prophet Muhammad] is its exemplary figure and
the Qur'an is its constitution. 21 The dimension of space is every place Muslims are found
who have adopted Islam as their way of life, in every corner of the globe. Thus it [Hamas]
strikes root in the depths of the ground and spreads to encompass the sky.
For see to what Allah has likened a good word: to a beautiful tree whose roots are firmly
planted and whose branches reach the sky, and whose fruit is always given at the right
time, with the permission of its master. Allah gave [such] parables to men so that they
might heed ([Surah 14] Ibrahim [Verses] 24-25).
Uniqueness and Independence
Article 6
The Islamic Resistance Movement is uniquely Palestinian . It has faith in Allah and
adopts Islam as its way of life . It acts to fly the banner of Allah over all of Palestine ,
because people of all religions can live in the shadow of Islam in tranquility and
security for their lives , property and rights. However, in the absence of Islam a conflict
develops that injustice, corruption grows, more conflicts are created, and [eventually] war
breaks out.
How great is the Muslim poet Muhammad Iqbal,

22

who wrote:

When faith is lost there is no safety and no life for anyone who does not revive religion. He
who is content with life without religion has made obliteration of the self his life's

companion.
The universality of the Islamic Resistance Movement
Article 7
Muslims who adopt the path of the Islamic Resistance Movement and act to support it, to
adopt its positions and to strengthen its holy war are spread over the face of the earth,
making the movement universal . The movement is qualified for that because of the
clarity of its worldview, its noble purpose and the exalted quality of its goals.
That is how the movement should be considered, how its value should be judged and how
its role should be recognized. Whoever denies its right, refrains from supporting it or whose
vision is impaired and who works unceasingly to blur its role, is like someone contesting
fate [as determined by Allah], and who closes his eyes to the facts, either intentionally or
unintentionally. When he opens his eyes, he will realize that the events have passed him
by. Then he will become exhausted in his [useless] in an effort to justify his previous
position, unable to sustain it any longer [compared to someone who] preceded him [and
joined the movement and] has preference [over him].
[As written:] The injustice incurred by one's close relatives is more painful to the soul than a
sharp, powerful blow from the sharpest sword. 23 [As it is written in the Qur'an]: We
brought to you [Muhammad] from on high the [holy] book [i.e., scripture] with the truth,
confirming the scripture[s] that came before it and with final authority over them. Therefore,
judge between them according to everything Allah brought down [to you], and do not do
follow their whims which deviate from the truth which has been revealed to you. Each of
you was given a law and a path. If [Allah] had so willed, he would have made you one
community of believers, but he also desired to test you with what he has given to you.
Therefore, aspire among yourselves to be first in good deeds, for you will all return to Allah,
and then he will clarify for you all the matters you did not agree upon ([Surah 5] AlMa'idah [Verse ] 48).
The Islamic Resistance Movement is [also] one link in the chain of holy war in its
confrontation with the Zionist invasion . [The movement] has had a strong connection
with and is linked to the holy martyr [ shaheed ] Izzedine al-Qassam and his jihad warrior
brethern [ mujahideen ] from among the Muslim Brotherhood since 1936 . From there it
is closely related and connected to the next link [namely] the holy war of the Palestinians,
and to the efforts and holy war of the Muslim Brotherhood in the war of 1948 and the
jihad operations of the Muslim Brotherhood in 1968 and afterwards .

Actually, the links are distant from one another [in time], and the obstacles placed before
the jihad warriors by the followers of Zionism stopped the jihad from continuing.
Nevertheless the Islamic Resistance Movement aspires to bring the promise of Allah to
pass, no matter how long it takes. As the prophet [Muhammad], may the prayer of Allah
and his blessing of peace be upon him, said: The time [Judgment Day] will not come until
Muslims fight the Jews and kill them and until the Jew hides behind the rocks and trees,
and [then] the rocks and trees will say: Oh Muslim, oh servant of Allah, there is a Jew
hiding [behind me], come and kill him, except for the gharqad [salt-bush tree], so it is the
tree of the Jews ([Hadith] recorded in [the reliable collections of] Al-Bukhari and Muslim 24).
The Islamic Resistance Movement's motto
Article 8
Allah is its purpose, the messenger [the prophet Muhammad] is its exemplary figure
and the Qur'an is its constitution, jihad is its path and death for the sake of Allah is
the most exalted wish. 25
Chapter Two
Goals
Causes and targets
Article 9
The Islamic Resistance Movement was born in an era in which Islam was absent from daily
life. As a result, balances were upset, concepts were confused, values altered and evil
people took power. Injustice and darkness prevailed, cowards behaved like tigers,
homelands were taken by force and people were driven out and wandered purposelessly
all over the earth. The Country of Truth disappeared and was replaced by the Country of
Falsehood, [consequently] nothing was left in its rightful place. That is the state of affairs
when Islam vanishes from the scene, everything changes, and those are the causes.
As to the goals [of the Islamic Resistance Movement], they are: a war to the death against
falsehood, conquering it and stamping it out so that truth may prevail, homelands may be
returned [to their rightful owners] and the call of the muezzin may be heard from the
turrets of the mosques, announcing the [re]institution of an Islamic state , so that
Muslims might return and everything return to its rightful place, with the help of Allah, [as it
is written in the Qur'an:] If Allah did not urge people not to lay hands upon one another, the

land would [certainly] be in disarray, but Allah bestows his grace on all human beings
([Surah 2] Al-Baqarah [Verse ] 251).
Article 10
The Islamic Resistance Movement , while making its way forward, with all its might [offers]
support to anyone oppressed and protects anyone who feels he was unjustly treated. It
does not spare any effort to institute justice and wipe out falsehood, in word and deed, both
in this place and in every place it reaches and wherever it can have influence.
Chapter Three
Strategy and means
The strategy of the Islamic Resistance Movement
Palestine is Islamic Waqf [religious endowment] land
Article 11
The Islamic Resistance Movement believes that the land of Palestine is a religious
Islamic endowment [ waqf ] for all Muslims until Resurrection Day. It is forbidden to
relinquish it or any part of it or give it up or any part of it. It does not belong to any
Arab country, or to all the Arab countries, or to any king or president, or kings or
presidents, or to any organization or organizations, whether they are Palestinian or
Arab , because Palestine is sacred Islamic endowment land and belongs to Muslims until
Resurrection Day. Its legal status is in accordance with Islamic law [ al-shari'ah alislamiyyah ]. It is subject to the same law to which are subject all the territories conquered
by Muslims by force, for at the time of the conquest [the Muslim conquerors] consecrated it
[i.e., Palestine ] as a Muslim religious endowment for all Muslim generations until
Resurrection Day.
It happened thus: after the commanders of the Islamic armies conquered Al-Sham 26 and
Iraq, they sent the Muslim Caliph, Omar bin al-Khattab, [messages] in which they
consulted with him about [the fate of] the conquered land whether to divide it among the
soldiers or to leave it to its owners [or act in some other way]. After consultations and
deliberations between the Muslim Caliph, Omar bin al-Khattab, and the companions of
Allah's messenger ( sahabat al-rasoul ], may Allah's prayer and blessing of peace by upon
him, the decision was made whereby the land would remain in the hands of its [original]
owners, who would be able to enjoy it and its fruits. With regard to [the right] of possession
of the land and of the land itself, [it was decided that] it would be sacred to Muslims forever

until Resurrection Day, but its owners would have the right to enjoy [only] its fruits. That
endowment exists as long as the sky and earth exist. 27 Therefore any act performed in
opposition to Muslim law with regard to Palestine is null and void, [as it is written in the
Qur'an:] For this is indeed certain truth, and therefore praise the name of your exalted lord
([Surah 56] Al-Waqi'ah [Verses] 95-95).
The homeland and particular nationalism [ al-wataniyyah ] from the Islamic Resistance
Movement's point of view
Article 12
From the point of view of the Islamic Resistance Movement, particular nationalism [ alwataniyyah 28] is part of the religious faith. There is nothing more serious or profound
which reflects that type of nationalism than the fact that the enemy has trampled on
Muslim soil. In such a situation, launching a holy war [against] him and confronting
him become the personal duty [ fardh ayn ] of every Muslim man and woman: the
woman goes out 29 to fight [the enemy] without her husband's permission, and
[even] the slave [is obliged to go out to fight the enemy] without the permission of
his master. There is nothing like it in any other political system , 30 and that is an
indisputable fact. If all the various national particularist [movements] are linked to [and
characterized] by physical, human or regional factors, then the Islamic Resistance
Movement is also characterized by all of the above. Moreover, and most important, it is
[also] characterized by divine motives 31 which breathe life and soul into it, since it is
strongly linked to the source of the spirit and [to him who] gives [it] life. It [i.e., Hamas]
waves the divine banner in the sky of the homeland, strongly joining together heaven and
earth, [as the widely known Muslim Arab saying states:] When Moses came and threw
down his rod, it was the end of magic and magicians, 32 [and it is written in the Qur'an
that:] True guidance has become distinct from error; therefore, whoever rejects false gods
and believes in Allah has grasped the firmest hand-hold, one that will never break, for Allah
is all-hearing and all-knowing ([Surah 2] Al-Baqarah [Verse] 256).
Peaceful solutions, diplomatic initiatives and international conferences
Article 13
[Diplomatic] initiatives, the so-called peaceful solutions and international
conferences to find a solution to the Palestinian problem, contradict the Islamic
Resistance Movement's ideological position. Giving up any part whatsoever of [the
land of] Palestine is like ignoring a part of [the Muslim] faith. A ccordingly, the

particular nationalism of the Islamic Resistance Movement is [also] part of its faith. On
ganner of Allah over their homeland, [and it is written in the Qur'an that:] Allah always
prevails [in the end], although most people do not realize that ([Surah 12] Yusuf [Verse]
20).
Sometimes the call is heard for an international conference to discuss a solution for the
[Palestinian] problem. There are those who agree [to that proposal] and those who reject it
for one reason or another. They demand the fulfillment of a certain condition or conditions
in return for their agreement to hold a conference and to participate in it. The Islamic
Resistance Movement is very familiar with both sides of the conferences and their
[negative] positions regarding Muslim interests in the past and present. Therefore, the
Movement does not consider such frameworks capable of meeting the demands [of the
Palestinians] or of restoring their rights or of bringing justice to the oppressed. Thus such
conferences are but one of the means used by the infidels to prevail over Muslim
land, and when have the infidels treated the faithful justly? [as it written in the Qur'an
that:] the Jews will never be pleased with you, nor will the Christians, until you have
followed their religion. Say therefore, Allah's guidance is the only true guidance. But if you
were to follow their desires after the knowledge that has come to you, then you would find
no one to protect or guard you from Allah ([Surah 2] Al-Baqarah [Verse] 120 ).
There is no solution to the Palestinian problem except jihad. Regarding the
international initiatives, suggestions and conferences, they are an empty waste of
time and complete nonsense . The Palestinian people are far too noble to have their
future, rights and fate toyed with, [as the noble hadith states:] The men of Al-Sham 33 are
the scourge [of Allah] in his land. Through them he wreaks vengeance on whomever he
wishes among his servants. It is forbidden for the hypocrites among them to overcome the
true believers among them; but rather they will die in sorrow and grief (told by Al-Tabarani
34
with a chain of transmitters to Muhammad, and by Ahmad [ibn Hanbal] with an
incomplete chain of transmitters to Muhammad, which [i.e., the incomplete chain] may be
the accurate record, but [only] Allah knows [the absolute truth]).
The three spheres
Article 14
The problem of the liberation of Palestine has three spheres: the Palestinian, the
pan-Arab and the Islamic. Each has a role to play in the struggle [ siraa' ] against the
Zionists and [also has] duties . Neglecting one of the spheres is a terrible mistake and
shameful ignorance, for Palestine is Islamic land. In it is the first of the two directions of the

worshippers at prayer, 35 and the third [most holy place] after the first two. 36 It is also the
destination of the night ride of the prophet of Allah, may Allah's prayer and blessing of
peace be upon him, [as it is written in the Qur'an:] Praised be him who took his servant on
a night ride from the sacred mosque to the farthest mosque [ al-masjid al-aqsa ] whose
precincts we blessed, to show him some of our signs. He alone is the all-hearing, the allseeing ([Surah 17] Al-Israa' [Verse] 1).
That being the case, the liberation [of Palestine ] is the personal duty of every
Muslim, wherever he may be. [Only] on that basis can [a solution for] the
[Palestinian] problem be considered, and every Muslim must fully understand that .
On the day the [Palestinian] problem is treated on that basis, [that is, on the day] when all
the capabilities of the three spheres are mobilized, the current situation will change and the
day of liberation will be nearer, [as is it written in the Qur'an:] The fear of you [believers] in
their [the Jews'] hearts is greater than their fear of Allah, because they are a people devoid
of understanding ([Surah 59] Al-Hashr [Verse] 13).
The jihad for the sake of liberating Palestine is a personal duty
Article 15
The day enemies steal part of Muslim land, jihad [becomes] the personal duty of every
Muslim . With regard to the usurpation of Palestine by the Jews, it is a must to fly the
banner of jihad. That means the propagation of Islamic awareness among the
masses locally [in Palestine ], the Arab world and the Muslim world. The spirit of
jihad must be disseminated within the [Islamic] nation, the enemies must be
engaged in battle and [every Muslim must] join the ranks of the jihad warriors [
mujahidee n ].
It is therefore necessary that religious scholars [ ulamaa ], educators, media
personalities, the educated public and especially the younger generation and the
leaders if the Islamic movement take part in [this] campaign to create awareness
[i.e., indoctrination]. In addition, fundamental changes must be made in the school
curricula to free them from the influences of the intellectual [western] invasion they
have been subjected to by Orientalists and missionaries . That invasion took the
region by surprise after Salah al-Din al-Ayoubi [Saladin] defeated the Crusader armies.
The Crusaders then realized that the Muslims could not be conquered unless the way had
[first] been prepared by an ideological invasion to muddle the [Muslims'] thoughts, distort
their heritage and defame their ideals, and [only] then could a military invasion take place.
[All] that happened in preparation for the [western] imperialist invasion, when [General]

Allenby announced on his entrance to Jerusalem : Finally the Crusades are over, and
General Gouraud stood on Salah al-Din's grave and said: Salah al-Din, we have
returned. Imperialism reinforced the intellectual invasion and deepened its roots, and it still
[does so]. All that paved the way for the loss of Palestine .
Therefore, what must be done is [the following:] to instill in the minds of all the
Muslims generations that the problem of Palestine is religious, and on that basis it
must be dealt with . After all, there are holy sites [in Palestine] which are sacred to Islam:
Al-Aqsa mosque is there, and it has an indissoluble tie to the holy mosque [in Mecca] [and
will have] as long as the heaven and earth endure, because of the night ride of the prophet
of Allah, may Allah's prayer and a blessing of peace be upon him, and his ascension to
heaven from there, [as it says in the hadith:] Being stationed on the frontier for the sake of
Allah [for only] one day 37is better than this world and everything in it. Likewise, a portion of
paradise as small as [the place] which is taken by a [horseman's] whip belonging to any of
you [i.e., the jihad warriors] is better than all this world and everything in it. The incursion to
the ranks of the enemy and the tactical withdrawal in preparation for another attack [as part
of jihad] by any Muslim are better than this world and what is in it (as recounted in [the
collection of hadiths of] Al-Bukhari, Muslim, al-Tirmidhi and Ibn Majah). 38 By the life of him
in whose hands rests Muhammad's soul 39 [i.e., Allah], I which I could participate in an
invasion for the sake of Allah and to be killed in it, and after that [if I do not die, I will desire
again] to fight and then to die, and after that [if I do not die, I will desire again] to fight and
then to die (as is told [in the collection of hadiths of] Al-Bukhari and Muslim).
Educating the next generations
Article 16
The coming generations raised in our region must receive an Islamic education
based on carrying out the commandments of [the Islamic] religion and a conscious
study of the book of Allah [the Qur'an] and of the Muslim tradition [the Sunnah] and of the
prophet [Muhammad]. In addition, [in the same way] we must teach them from reliable
sources of Islamic history and heritage under the instruction of specialists and scholars,
and to prepare the curricula which will create the correct outlook in the thoughts and
beliefs of the Muslim [student] . At the same time it is necessary to make a attentive
study of the enemy and his material and human resources, while recognizing his weak
spots and sources of power and the general forces supporting and standing by him.
[Likewise] it is necessary to be familiar with events as they happen, to be up-to-date and to
study their analyses and interpretations. It is also necessary to plan for the present and the
future 40http://www.terrorism-

info.org.il/malam_multimedia/English/eng_n/html/hamas_charter.htm - _ftn35#_ftn35

and to examine everything that happens so that the Muslim jihad warrior will live his life
aware of his purpose, aim, path and what takes place around him, [as it is written in the
Qur'an:] My son, something whose weight is but the weight of a mustard seed, 41 even if it
is within a rock or in the sky or in the depths of the earth, Allah will find [and bring] it [to
light]. Allah is most kind and knows everything inside out. My small son, say the prayer and
command what is right and forbid that which is wrong and bear everything that happens to
you steadfastly. That is a sign of treating things with firmness. Do not treat people with
contempt or behave arrogantly in public. Allah does not like any person behaving with
arrogance ([Surah 31] Al-Luqman [Verses] 16-18).
The role of the Muslim woman
Article 17
The role of the Muslim woman in the battle for liberation is no less important than
that of the [Muslim] man , for she is the maker of men. She has a supremely important
role in guiding the coming generations and educating them. Indeed, [our] enemies have
long since understood the importance of her role. Their view toward her is that if they can
guide her and raise her as they please, devoid of Islam, then they will win the battle
[against us]. Therefore you discover that they devote a great deal of continuous effort
to their attempts [to achieve that] using the media, movies and curricula [which they
wield] through their proxies within the Zionist organizations, the latter assuming all
sorts of names and forms, such as The Organization of Freemasons, 42 Rotary clubs
[i.e., Rotary International], 43 espionage groups and others, all of which are nothing
more than dens of sabotage and saboteurs. These Zionist organizations have
enormous material resources which enable them to play roles inside the [i.e., in this
context, Islamic] societies [keeping them functioning] without any Islamic
participation in them, thus alienating [Muslims] from it . Therefore, the followers of the
global Islamic movement [i.e., Muslim fundamentalists] 44 must [all] take part in countering
the plans [or plots] of those saboteurs. On the day Islam [will be in a position to] direct
life, it will eradicate the organizations [deemed] hostile to humanity and to Islam .
Article 18
The woman in the home of a jihad warrior and a jihad warrior family, whether she is a
mother or a sister, fills the most important role of taking care of the home, raising the
children according to the moral ideas and values derived from Islam and educating her
children to follow the precepts of [the Islamic] religion in preparation for the role in the jihad

that awaits them. Therefore , much attention must be paid to the schools and curricula
of the Muslim girl's education so that she may grow up and be a proper mother,
aware of her role in the battle [for the] liberation [of Palestine] .
She must also have enough perception and awareness to conduct household affairs. Being
economical and avoiding waste in the family's expenses are part of the necessary
requirements for surviving in the difficult conditions prevailing. Thus she must always be
aware [that] the money available [to her] is like blood which must run through the veins
solely for the purpose of continuing the life of young and old alike, [as it is written in the
Qur'an:] Muslim men and women who are faithful and devout, true, brave, modest, give
charity, fast, are chaste and often call upon Allah for them Allah has prepared mercy and
a great reward ([Surah 33] Al-Ahzab [Verse] 35).
The function of Islamic art in the battle for liberation
Article 19
Art has its own rules and standards, by which it is possible to determine whether it is
Islamic or jahili . 45 The issues of Islamic liberation need Islamic art which will uplift the
spirit without making one aspect of a person more prominent than the other; on the
contrary, it must raise all aspects of the individual in a balanced, harmonious fashion.
Indeed, the human being is a unique and wonderful creature, [made from] a handful of clay
46
[combined with] a spiritual soul [of Allah]. Accordingly, Islamic art relates to humans
based on that basis, while jahili [i.e., pagan] art relates only to the body, and gives
predominance to the aspect of clay. 47
Therefore, if books, articles, publications, sermons, treatises, folk songs, poetry,
[patriotic] songs, plays, etc., contain the characteristics of Islamic art, they are
among the elements needed for ideological recruitment . They are also the refreshing
nourishment necessary to continue the journey and provide rest for the soul, for the way is
long and the suffering great and the souls become weary. That is, Islamic art renews
activity, sets [things] in motion, and awakens within the soul sublime meaning and
sound behavior . There is nothing that can repair the soul if it is in retreat except the
change from one state to another. These are all very serious things and not to be taken
lightly, for the jihad warrior nation knows no jest.
Mutual guarantees and [Muslim] solidarity
Article 20

Muslim society is [characterized by] solidarity. Indeed, the messenger [the prophet
Muhammad], may Allah's prayer and his blessing of peace be upon him, said [in the
hadith}; Blessed are the sons of the al-Ash'ariyyun tribe. 48 When they were required to
make an effort either in an area where they had settled or during [long] journey, they would
collect everything they had and divide it equally. That is the Islamic spirit that must prevail
in Muslim society. A society facing a cruel enemy who behaves like a Nazi 49 that does not
distinguish between man and woman, young and old, must wrap itself in such an Islamic
spirit. For our enemy relies on collective punishment. It deprives people [i.e., the
Palestinians] of their homes and possessions. It hunts them down in exile and wherever
they gather. [The Zionist enemy] relies on breaking bones, shooting women, children and
old people, with or without a reason. He opened detention camps to throw into them many
thousands of people [i.e., Palestinians], [who live there] in subhuman conditions. In
addition, he destroys homes, turns children into orphans and unjustly convicts thousands
of young people so that they may spend the best years of their lives in the dark pits of their
jails.
The Jews' Nazism includes [brutal behavior towards Palestinian] women and
children and terrifies the entire [population]. They battle against [the Palestinians']
making a living, extort their money and trample their honor . In their behavior
[towards these people] they are as bad as the worst war criminals. [Their] deportation
[of people] from their homeland is in fact a form of murder. Therefore, to cope with such
acts, solidarity must prevail and [these people] must face the enemy as one body.
Accordingly, if one member of the body complains [of an injury which has led to the
development of a high fever] then the other members identify with it by watching over it all
night long and partaking of the fever [to ease the member's suffering]. 50
Article 21
Mutual social responsibility includes providing material or moral aid to anyone in need or
participation in carrying out part of one's duties. [Therefore] members of the Islamic
Resistance Movement must relate to the interests of the masses as though they were their
own personal interests, and must spare no effort to realize and preserve them. They must
prevent manipulations regarding everything that negatively influences the future of the
[next] generations and [everything that] might harm their society. In fact, the masses are
[members] of [the Islamic Resistance Movement] and [work] on their behalf, and the
strength [of the Islamic Resistance Movement] stems from [the masses'] strength and [the
Islamic Resistance Movement's] future is [the masses'] future. The members of the Islamic
Resistance Movement must therefore take part in [the Palestinians'] joys and sorrows,
espouse the demands of the masses and everything which promotes [the movement's]

interest and [the Palestinian masses'] interests [at the same time]. The day such a spirit
prevails, brotherhood will become more profound and there will be cooperation and mutual
compassion, unity will become stronger and the ranks will stand closer together in the face
of [our] enemies.
The forces which support the enemy
Article 22
[Our] enemies planned their deeds well for a long time [and managed] to achieve whatever
they have, employing the factors influencing the course of events. Therefore, they acted to
pile up huge amounts of influential material resources, which they utilized to fulfill their
dream. Thus [the Jews], by means of their money, have taken over the international
communications media: the news agencies, newspapers, publishing houses,
broadcasting stations, etc. [Not only that,] they used their money to incite
revolutions in various places all over the world for their own interests and to reap
the fruits thereof. They were behind the French Revolution, the Communist
Revolution and most of the revolutions we have heard about [that happened here
and there]. They used their money to found secret organizations and scattered them
all over the globe to destroy other societies and realize the interests of Zionism.
[Such organizations] include the Freemasons, the Rotary clubs [sic], the Lions
[Club], 51 The Sons of the Covenant [i.e., B'nai Brith] and others. They are all
destructive espionage organizations which, by means of money, succeeded in
taking over the imperialist countries and encouraged them to take over many other
countries to be able to completely exploit their resources and spread corruption . 52
[Their involvement in] local and world wars can be spoken of without fear of
embarrassment. In fact, they were behind the First World War , through which achieved
the abolishment of the Islamic Caliphate, 53 made a profit and took over many of the
sources of wealth. They [also] got the Balfour Declaration and established the League
of the United [sic] Nations to be able rule the world. They were also behind the
Second World War, in which they made immense profits by buying and selling
military equipment, and also prepared the ground for the founding of their [own]
state. They ordered the establishment of the United Nations and the Security
Council [sic] which replaced the League of the United [sic] Nations, to be able to use
it to rule the world. No war takes place anywhere in the world without [the Jews]
behind the scenes having a hand in it [as it is written in the Qur'an:] Whenever they fan
the flames of war, Allah will extinguish them. They strive [to fill] the land with corruption,

and Allah does not like the corrupt ([Surah 5] Al-Ma'ida [Verse] 64).
In fact, the forces of imperialism in the capitalist west and Communist east support the
[Zionist] enemy as stoutly as possible with both material and manpower. They alternate
with one another [in giving support]. On the day Islam appears [in all its might] all the
infidels will join forces to confront it for [all] the infidels are one community, 54 [as it is written
in the Qur'an:] Oh ye who believe, do not become close to those who are not of your own
faith, for they will not spare any effort to corrupt you. They are happy with your misfortune
and hatred [for you] burns in their mouths, but what they hide in their hearts is worse. We
have made that clear to you with signs, if only you [could] understand ([Surah 3]
Aal-Imran [Verse] 118). 55 It is not a matter of chance that the verse ends with the words, if
only you [could] understand.
Chapter Four
Our position regarding:
A. The [other] Islamic movements
Article 23
The Islamic Resistance Movement respects and has great estimation for the other Islamic
movements. Even if it disagrees with them regarding a position or view, it agrees with them
regarding [other] positions and views. It considers those movements, as long as they
demonstrate good intentions and faithfulness to Allah, as acting within the realm gate(s)
of ijtihad, 56 and as long as they operate within the general Islamic sphere, for every
mujtahid [qualified Muslim religious scholar who issues independent religious edicts] has a
share [in it].
Therefore, the Islamic Resistance Movement views those movements as potentially
available [to be used by it], and asks Allah for [wise and right] guidance for everyone [i.e.,
every member of the movements]. It does not for a moment forget that it waves the banner
of unity and invests much effort to bring [unity] to bear in accordance with the Qur'an and
Sunnah. [For it is written in the Qur'an:] Hold fast to the rope of Allah all together; do not
split into factions, and remember Allah's favor when he brought your hearts together when
you were enemies. His kindness turned you into brothers, and saved you when you were
on the brink of the pit of fire. In this way Allah makes his signs clear to you so that you may
be rightly guided ([Surah 3] Aal-Imran [Verse] 103). 57

Article 24
The Islamic Resistance Movement forbids the libeling and defaming 58 of individuals or
groups. A true believer does not defame or curse. In addition, a distinction must be made
between [defamation] and taking a stand or having an opinion or behaving in a certain way.
The Islamic Resistance Movement has the right to identify a mistake and to warn [people]
of it while striving to clarify the truth and adopting it in relation to any specific issue about
which an objective attitude is taken [by Hamas]. Wisdom is what the true believer is
searching for, and he should therefore embrace it wherever he finds it, 59[as it is written in
the Qur'an:] Allah does not like bad words to be spoken in public unless because
someone has been treated unjustly. Allah is all-hearing and all- knowing. Whether you do
good openly or whether you hide it or whether you show forgiveness for evil, surely Allah is
most forgiving ([Surah 4] Al-Nisaa' [Verses] 148-149).
B. The national movements in the Palestinian arena
Article 25
[The Islamic Resistance Movement] behaves toward them with mutual respect, appreciates
their circumstances and the factors surrounding and influencing them, and supports them
as long as they are not loyal to the Communist east or the Christian [Crusader] west. 60 The
Islamic Resistance Movement assures anyone who immerses himself in or identifies with it
that it is a jihadist and moral movement and aware in its world view and its dealings with
others. It loathes opportunism and wants only good for people, be they individuals or
groups. It does not strive for material gains or a good reputation or the profits that arise
from that -- [as it is written in the Qur'an:] Muster against them [the enemy] all the force
you can ([ Surah 8] Al-Anfal [Verse ] 60), 61 -- and in order to perform your duty so that
Allah might be pleased with you. [The Islamic Resistance Movement] has no aspiration
beyond that.
It reassures all the national trends [i.e., groups] operating within the Palestinian
arena for the liberation of Palestine that it lends support and aid to them and will
never behave otherwise in word or in deed in the present and future. [The Islamic
Resistance Movement] brings [people] together and does not separate [them], protects and
does not cast aside, unites and does not divide, values every good word and genuine effort
and commendable endeavor. It closes the door in the face of petty disagreements and
does not heed rumors and biased words; it is fully aware of the right to self defense.
Anything that opposes or contradicts these positions is a libel fabricated by the enemy or
by his lackeys to spread confusion, divide the ranks and create destruction through

marginal issues, [as it is written in the Qur'an:] Oh ye true believers, when a sinful person
comes to you with information, investigate what he says carefully lest people be harmed
inadvertently, and you regret what you have done ([Surah 49] Al-Hujurat [Verse] 6).
Article 26
The Islamic Resistance Movement treats other Palestinian national movements positively if
they are loyal to neither east nor west. However, that does not prevent it from discussing
new developments locally and internationally regarding the Palestinian issue in an effective
manner which reveals the degree of [their] agreement or disagreement with national
interests and based on [its] Islamic worldview.
C. The Palestine Liberation Organization
Article 27
The Palestine Liberation Organization is closest to the Islamic Resistance Movement and it
is [considered] father, brother, relative [and] friend. Can any Muslim shun his father or
brother or relative or friend? After all, our homeland is one, our catastrophe one, our fate
one and we have a common enemy.
The circumstances under which the organization [the Palestine Liberation Organization]
was founded and the atmosphere of ideological confusion prevailing in the Arab world
following the intellectual invasion that the Arab world was subjected to, and is still
influenced by, since its defeat at the hands of the Crusaders, Orientalism, [Christian]
missionary [activity] and imperialism made the Palestine Liberation Organization adopt
the ideology of a secular state and that is how we see it. However, a secular ideology
is diametrically opposed to a religious ideology, and eventually positions, modes of
behavior and the decision-making process are all based on ideology .
Therefore, despite our esteem for the Palestine Liberation Organization and what it is
capable of developing into, and without belittling its role in the Arab-Israeli conflict, we
cannot exchange the Islamic nature of Palestine in the present or future for the
adoption of secular ideas. That is because the Islamic nature of Palestine is part of
our faith and whoever does not take his faith seriously is defeated, [as it is written in the
Qur'an:] Who would despise the religion of Abraham except for the one who has made a
fool of himself ? ([Surah 2] Al-Baqarah [Verse] 130).
Hence the day on which the Palestine Liberation Organization adopts Islam as its
way of life we will be its soldiers and the fuel of its fire which will burn the enemy .

However, until then and we pray to Allah that it happens soon the Islamic Resistance
Movement will treat the Palestine Liberation Organization as a son treats his father, brother
treats brother, relative treats relative. One suffers for the other when he is pricked by a
thorn, supports him in his confrontation with his enemies and wishes he may go along the
true path and [act with] wisdom.
Your brother [is also] your [guardian and supporting] brother. One who has no brother / is
like someone who hastens into battle without a weapon [to guard and support him]. /
Remember, a [person's] cousin serves as his [second] wing [which guards and supports]
him, / hence can the falcon fly with only one wing? 62
D. Arab and Islamic states and governments
Article 28
The Christian [Crusader] conquest is evil, it does not stop at anything, it makes use
of every despicable and vicious means to achieve its ends. In its infiltration and
espionage operations it relies heavily on the secret organizations it gave birth to,
such as the Freemasons, Rotary and Lions Club, and similar espionage groups. All
those organizations, both covert and overt, act for the good of and are directed by
Zionism. They aim to collapse society, undermine values, destroy the security of life
and property, create [moral degeneration] and the annihilation of Islam. They are
behind trafficking in drugs and alcohol, to make it easier for them to take over [the
world] and to expand [and gain more territory].
Therefore, the Arab states bordering Israel are required to open their borders to the jihad
warriors belonging to the Arab/Muslim nations, so that they may fulfill their role and join
their efforts to those of the Muslim brethren in Palestine .
With regard to the other Arab/Muslim nations, they are required to facilitate the passage of
the jihad warriors through their territory, which is the very least [they can do].
Nor do we forget to remind every Muslim that when the Jews conquered the holy [site] in
Jerusalem in 1967 and stood on the threshold of the blessed Al-Aqsa mosque they
cheered: Muhammad died and left [only] daughters.
Thus Israel with its Judaism and Jews challenges Islam and Muslims. And the cowards
shall know no sleep. 63 [I.e., the Muslims will make the Jews so fearful they will not sleep at
night.]

E. National and religious groups, institutions, educated people and the Arab/Muslim world
Article 29
The Islamic Resistance Movement expects these groups to stand by it and support it at
various levels, to adopt its positions, support its activities and movements and acts to gain
[other] support for it, so that Muslim peoples will give it [their] support, backing and a
strategic depth on all levels: human, material, information, time and place. [That should be
done] by organizing conferences, publishing committed pamphlets and creating mass
awareness [through indoctrination] with regard to the Palestinian issue and what [dangers]
it faces, what is plotted against it, and by recruiting Muslims through ideology, education
and culture. Thus they [the Muslim peoples] will play a part in the decisive battle for
liberation [just] as they contributed to the defeat of the Crusaders and the rout of Tatars
and rescued humanity's civilization. That [victory of the Muslim peoples] is not difficult for
Allah [to achieve], [as it is written in the Qur'an:] Allah wrote, for I will most certainly
overcome, I and my messengers. Allah is strong and powerful ([Surah 58] Al-Mujadalah
[Verse] 21).
Article 30
Writers and the educated, media people, preachers in mosques, educators and the other
sectors of the Arab/Muslim world: they are all called upon the play their roles, to fulfill their
duties in view of the vicious invasion of Zionism and its infiltration into most of the countries
[of the world] and its material and media control, and with all its ramifications in most
countries of the world.
Indeed, jihad is not limited to bearing arms and fighting the enemy face to face. A good
word, a good article, an effective book, support and aid if the intentions are pure so that
Allah's banner becomes supreme, all constitute the essence of jihad for the sake of Allah.
Whoever has prepared a warrior [to do battle] for the sake of Allah [is considered as
having] fought [in the battle], and whoever remains behind [to take care of] the warrior's
family [is considered as having] fought [in the battle] (as told by al-Bukhari, Muslim, Abu
Daoud and al-Tirmidhi in the hadith collections).
F. Followers of other religions
The Islamic Resistance Movement is a humane movement

Article 31
The Islamic Resistance Movement is a humane movement which respects human rights. It
is committed to the tolerance of Islam toward the followers of other religions. It is not
hostile to them but only so far as they are hostile to it or whoever stands in its way to make
it fail or frustrate is efforts.
Those who believe in the three [monotheistic] 64religions, Islam, Christianity and
Judaism, can live side by side under the aegis of Islam in security and safety, for
only under the aegis of Islam can there be complete security . In fact, ancient and
recent history are the best proof of that. Therefore, the followers of other religions are
called upon to stop fighting Islam in regard to sovereignty over this region. On the day that
they become rulers, they will rule only by killing, torture and expulsion. That is because
they are incapable of dealing with each other, let alone with the followers of other religions.
Both the past and the present are full of examples proving that, [as it is written in the
Qur'an regarding the Jews:] They do not ever go out as one man to fight you, except from
within fortified strongholds or from behind high walls. There is much hostility among them.
They seem to you to be united, but their hearts are divided because they are a people
which are devoid of understanding ([Surah 59] Al-Hashr [Verse] 14).
Islam provide rights to anyone who is eligible to have thems, and prevents the rights of
others from being infringed upon. [As opposed to that,] the Nazi Zionists' harsh measures
taken against our people will not prolong the duration of their invasion. Indeed, the rgime
of injustice will last but one hour, while the rgime of truth [will last] until the hour of
resurrection [i.e., Judgment Day]. [As it is written in the Qur'an:] Allah does not forbid you
to respect and be just with those who do not fight you because of your faith and do not
drive you out of your homes. Allah loves those who are just ([Surah 60] Al-Mumtahinah
[Verse ] 8).
G. The attempt to isolate the Palestinian people
Article 32
World Zionism and the forces of imperialism are trying in a subtle way and with
carefully studied planning, to remove the Arab states, one by one, from the sphere
of the conflict with Zionism, eventually of isolating the Palestinian people.
The aforementioned forces have already removed Egypt to a large extent, through
the treacherous Camp David accords [September 1978]. They are now trying to draw
other [Arab] states into [signing] similar agreements, so that they may also be

outside the conflict.

Therefore the Islamic Resistance Movement calls upon the Arab and Muslim peoples to act
in all seriousness and with all diligence to frustrate that monstrous plan [or plot] and to alert
the masses to the danger [inherent in] leaving the sphere of confrontation with Zionism:
today it is Palestine and tomorrow part of another country [ qutr ], or other countries [ aqtar
]. 65 The Zionist plan has no limit; after Palestine [the Zionists] aspire to expand to the
Nile and the Euphrates . Once they have devoured the region they arrive at, they will
aspire to spread further and [then] on and on. Their plan [or plot appears] in The
Protocols of the Elders of Zion and their present [behavior] is [the best] proof of what we
are saying. Therefore, leaving the conflict with the Zionists is [an act of] high treason and a
curse which rests upon whoever [does so]. [As it is written in the Qur'an:] Whoever
retreats [while fighting the infidels] before them on that day unless he does so to return
and fight again, or to join the other warriors will have Allah's wrath visited upon him and
hell will be his abode. What a wretched fate ! ([Surah 8] Al-Anfal [Verse] 16).
Therefore, all forces and resources must be pulled together to confront this vicious Nazi
Mongol invasion, lest homelands be lost, residents expelled, corruption spread all over the
earth and all religious values destroyed. Therefore every man must know that he will bear
responsibility before Allah, [as it is written in the Qur'an:] Whoever does a good deed,
although it may be as small as a grain, will realize his [reward in the afterworld], and
whoever does an evil deed, although it may be as small as a grain, will realize his [reward
in the afterworld ] ([Surah 99] Al-Zalzalah [Verses] 7-8).
Regarding the scope of conflict with world Zionism, the Islamic Resistance
Movement sees itself as the spearhead or a step on the road [to victory]. It joins its
efforts to the efforts of those who are active in the Palestinian arena and [expects]
that additional steps will be taken at the level of the Arab/Muslim world. It is [best]
prepared for the next stage [of the conflict] with the Jews, the war mongers , [as it is
written in the Qur'an:] We have sown enmity and hatred among them until Resurrection
Day. Whenever they kindle the fire of war, Allah will extinguish it. They seek to fill the land
with corruption, but Allah does not love those whoe corrupt ([Surah 5] Al-Ma'idah [Verse]
64 ).
Article 33
The Islamic Resistance Movement starts off from these general views, which are
coordinated and compatible with the laws of nature.[In addition,] it sails through the river of
divine destiny [toward] confrontation with the enemy and the waging of a holy war against

him to protect Muslim person, civilization and holy places, foremost among them is the
blessed Al-Aqsa mosque. [All that is said and all that is done] to urge on the Arab and
Muslim peoples, their governments and popular and official groups, to fear Allah in their
outlook on and their dealing with the Islamic Resistance Movement. They should also, as
Allah so wishes, support and back it and give it aid again and again until Allah's supreme
rule has been established. [In that way,] the ranks will close and the jihad warriors will join
together. Then the masses will set out and come from all over the Muslim world, answering
the [Muslim religious] call of duty, again and again making the call to jihad heard, the call
that will rend the heavens, and its voice will echo until liberation has been achieved. Thus
the invaders will be defeated and the victory of Allah will come to pass, [as it is written in
the Qur'an:] Allah will provide aid for all those who come to his aid, for Allah is strong and
mighty ([Surah 22] Al-Hajj [Verse] 40).
Chapter Five
Historical proof throughout history [sic] regarding the confrontation with the aggressors
Article 34
Palestine is the heart of the globe, the place where the continents meet, the place that has
attracted the greedy [aggressors] since the dawn of history. The prophet, may Allah's
prayer and blessing of peace be upon him, mentions in his noble hadith in which he
addressed his revered companion, Mu'adh bin Jabel: Mu'adh, Allah will enable you to
conquer Al-Sham after my death, from El-Arish to the Euphrates, its men, women and
handmaidens will be [permanently] stationed at the frontier until Judgment Day. Whoever
among chooses [to dwell permanently in] one of the shores of Al-Sham or Jerusalem , will
be in a [permanent] state of jihad until Resurrection Day.
Indeed, many times a greedy [aggressor] coveted Palestine and took it by surprise with
columns [of soldiers] to satisfy their greed. Thus the huge armies of the Crusaders invaded
it in the name of their faith and flew the banner of the Cross over it. They succeeded in
defeating the Muslims for quite a while, and the Muslims only succeeded in reconquering it
after they gathered together under the banner of their [own] religion. Then they joined
forces and cried [the Muslim battle cry] Allahu Akbar , and set out to fight for almost two
decades as jihad warriors under the command al Salah al-Din al-Ayyoubi, and were
manifestly victorious: 66 The Crusaders were defeated and Palestine was liberated, [as it is
written in the Qur'an:] Tell the infidels, you will be defeated and brought together in hell.
How terrible [will] the resting place [ there be] ([Surah 3] Aal-Imran [Verse] 12).

That is the only way to liberate [ Palestine ]. There is no doubt as to the true proof of
history. It is one of the laws of the universe and one of the rules of existence. Only
iron can break iron, and [the infidels'] false and faked faith can be overcome only by
the true Islamic faith. Religious faith can only be confronted by religious faith. Eventually,
justice will prevail, since justice is [always] triumphant, [as it is written in the Qur'an:] We
have already given our word to our servants the messengers, that they are those who will
indeed be triumphant and that our battalions are the ones that will prevail ([Surah 37] AlSaffat [Verse] 171-173).
Article 35
The Islamic Resistance Movement has given to the defeat of the Crusaders at the hands of
Salah al-Din al-Ayyoubi and the wresting of Palestine from their hands very deep thought,
as it has done to the overthrow of the Mongols at Ayn Jalout 67 when their force was
broken by Qutuz and Al-Zahir Baybars, 68 who thus rescued the Arab [sic] world from the
Mongol invasion which destroyed every vestige of human culture. [The Islamic Resistance
Movement] takes those things seriously and draws inspiration and learns lessons from [all
of] them. To be sure, the current Zionist invasion was preceded by Crusader invasions from
the west and Mongol invasions from the east. As the Muslims withstood those invasions
and made plans to confront them and [eventually] defeated them, thus it has the capability
to face the Zionist invasion and to defeat it [as well]. That is not difficult for Allah, if
intentions are pure and resolve is honest, and if the Muslims learn the lessons of the past,
shed the influences of intellectual invasion and follows the practice of their ancestors. 70
Conclusion
The Islamic Resistance Movement [consists of] soldiers [for the cause]
Article 36
While making its way forward, the Islamic Resistance Movement again emphasizes to all
the [Palestinian] people, and to all Arab and Islamic peoples, that it is not seeking glory for
itself, material gain or social status. It is not directed against any one of our people since it
does not wish to compete with any one of them or try to take his place, nothing of the kind.
Moreover, it will not in any way oppose any Muslim or those non-Muslims who wish it well,
here [in Palestine ] or any other place. It will only serve as a support for any group or
organization active against Zionist enemy and its lackeys.
The Islamic Resistance Movement regards Islam as its way of life. Islam is its faith [and
ideology] which it professes. Whoever regards Islam as the way of life, either here or

elsewhere, be it an organization, group, state or any other body, the Islamic Resistance
Movement will serve as its soldiers and nothing else. We ask Allah to guide us and to guide
[others] through us [along the straight past] and judge us and our people with the truth, [as
it is written in the Qur'an:] Our sovereign, judge between us and our people with the truth,
for you are the best of judges ([Surah 7] Al-A'raf [Verse] 89).
Our final prayer [is]: Praise be to Allah, lord of the universe.

71

Supplements to and clarifications of the Qur'an, originally an oral tradition, later written
down and codified.
2

Various, slightly different versions can also be found on the Internet.

The Hamas platform made public during the Palestinian Legislative Council election
campaign was based on the charter, made relevant to the internal Palestinian arena (with
great emphasis placed on the need for internal reforms). For further information see our
Special Bulletin "News of the Israeli-Palestinian Confrontation (January 1-15, 2006) ".
4

The founder of the Muslim Brotherhood and an important figure in the Hamas shaheed
pantheon, apparently killed by the Egyptian security forces in 1949.
5

Abdallah Azzam was a Palestinian from the village of Silat al-Harithiya near Jenin, who
was Osama bin Laden's ideologue , and later became a popular figure for Hamas. For
further information see our Special Bulletin " Who is Dr. Abdallah Azzam ," . His book
defining jihad as the personal duty of every Muslim was published in 1984 and it is
reasonable to assume it influenced the Hamas charter.
6

In reality, throughout its history Hamas has refused to obey the Palestinian Authority
leadership, both when Arafat was in charge and now under Abu Mazen. Its policy is one of
independent terrorism and the refusal to disarm, and it has established itself in the PAadministered territories as a kind of alternative Palestinian Authority so that when the time
comes, it will be able to take over the government, as indeed happened.
7

The translation is based on the version distributed in Qalqilya compared with versions
appearing on the Internet with minor change was edded by the editor.
8

In the present version, the word Hamas appears after the full name of the movement on
the front cover, and before its full name on the title page. The word Hamas means zeal

in Arabic, an internal urge motivating someone to do something. In addition, Hamas is an

acronym for Islamic Resistance Movement.
9

The version of the Hamas charter translated here was not written on the date noted, but it
appears on most versions and therefore was added here. It related to the day Hamas was
officially founded.
10

I.e., the Jews and Christians.

11

In preparing this document, the following English translation of the Qur'an were used:
Internet sites, The Qur'an, A New Translation , by M. A. S. Abdel Haleem, OUP, 2005,
Oxford Classics, paperback edition with corrections, first published 2004. The final versions
of Qur'an quotations were edited by the translators of the Hamas charter. We also made
use of the MEMRI translation into English of the Hamas charter as it appears on their
Website : http://memri.org/bin/articles.cgi?Page=archives&Area=sd&ID=SP109206
12

Hassan al-Bana founded the Muslim Brotherhood in Egypt in 1928 and was its General
Guide. He was killed in 1949, apparently by the Egyptian security forces as a result of the
murder of Mahmoud Fahmi al-Nukrashi, the Egyptian prime minister assassinated by the
terrorist wing of the Muslim Brotherhood several weeks earlier.
13

Al-Zahawi (a Kurdish name) was a senior Sunni Muslim cleric in Iraq , who was active in
the Palestinian cause and to this day is an important symbol in the global jihad. He was
head of the Iraqi Association of Religious Scholars and one of the founders of the
Association for the Rescue of Jerusalem, which was established with the cooperation of
the World Islamic Conference. Among those present at the conference were Sayyid Qutb ,
one of the leading ideologues of Islamic fundamentalism. During the conference funds
were raised to help solve the Palestinian problem. Al-Zahawi was also head of an Islamic
group in Iraq called The Association of Islamic Brotherhood between 1949-1953. He
apparently met Hassan al-Bana. Today there is an Islamic battalion in Iraq named after
him, fighting the coalition forces.
14

The companions of the prophet, the sahabah : the first faithful comrades of Muhammad.

15

That is those who spread the da'wah , the Islamic message. In other words, those who
spread the religion of Islam worldwide.
16

That is, anyone who follows the Sunnah of the prophet Muhammad appearing in the oral
tradition ( hadith ) which was later written down.

17

In the copy of the Hamas charter in our possession, the text reads Arabness, that is,
the identity of all Arabic speakers, instead of education but in other editions the word is
education, and Arabness was probably a textual error.
18

In the original, fighting the jihad.

19

In the original, mujahideen , that is, jihad warriors. Jihad, according to Muslim tradition,
has many interpretations, among them the struggle against evil impulses, the contribution
of money to Islam and fighting in an Islamic army. Jihad in the connotation of the Hamas
charter means fighting a holy war for the sake of Allah to spread Islam worldwide.
20

The Muslim Brotherhood movement was founded in Egypt by Hassan al-Bana in 1928. It
is devoutly Muslim and has inspired all Islamic movements established to date. The
relationship between Hamas and the Muslim Brotherhood is close because the former's
founder and spiritual leader, sheikh Ahmad Yassin, belonged to the Muslim Brotherhood at
the beginning of his career and even set up a branch in Gaza .
21

Fully comprehensive, that is, faith that includes all aspects of life. What is implied is a
comprehensive (i.e., totalitarian) political viewpoint dictated by the Islamic faith .
22

This is an expression of the connection between Hamas and Salafist radicalism. It is the
source of the interest in returning to the values of the first generation of Islam.
23

For some reason, the charter uses the word dustur (meaning a modern, secular
constitution) and not shariy'a (religious Muslim law). However, once the Qur'an becomes
the constitution (e.g., Saudi Arabia ), there is no difference between its being described as
law or constitution. Thus Hamas supports an Islamic constitution whether it exists or not,
making it a genuinely fundamentalist Islamic movement.
24

A Indian Muslim poet and philosopher from Kashmir (1873-1938). In 1928 he published a
book in English about the need for renewing the spirit of Islam called The Reconstruction
of Religious Thought in Islam . Although he was knighted by the British authorities in India ,
his publications, mostly reformist in nature, are also used by conservative Muslims to
support their point of view.

25

A line from a well-known qassidah (ode), a classical, rhymed form of Arabic poetry, from
the Jahiliyyah era (the pre-Islamic period of ignorance and paganism), one of the seven
Mu'allaqat (the so-called hung poems, written on material and hung on walls, considered
the oldest collection of classical Arabic pre-Islamic poetry) written by the poet Taratfah ibn

al-Abd, following his numerous quarrels with his cousin.

26

Hadiths are collections of the Muslim oral tradition which were written down. Those of AlBukhari and Muslim are among six such collections which are considered most reliable by
Muslims. The tradition regarding the Jews who hid behind the rocks and trees on
Judgment Day is very popular among Muslims and its only goal is to defame the Jews. The
fact that the story is found in hadiths which are deemed reliable only makes the story more
authentic.
27

This has the Muslim Brotherhood's original motto since the movement's inception in
1928.
28

Greater Syria , which includes present day Syria , Lebanon , Jordan and Israel and the
lands of the Palestinian Authority.
29

That is, forever.

30

Wataniyyah refers to the nationalism of a specific nation, while al-qawmiyyah refers to

pan-aArabism (i.e., a supra-state Arab nationalism).
31

That is, she must go out.

32

Except for the Muslim rgime.

33

In the religious , not national sense.

34

It is a well-known Arabic saying, an echo of the story of Moses (and Aharon) and
Pharaoh, as mentioned in the Qur'an e.g., Surah Yunis (Surah number 10) and Surah
Daha (Surah number 20) the gist of which is that Moses, through the power invested in
him by Allah managed to do away with several magicians. The sentence, in this context, is
used to show that the Hamas doctrine regarding particular nationalism and its components
is like Moses' rod, which can void every other act of magic or any other act which reflects
another particular nationalism, such as Zionism. Therefore, Hamas's aim is more probably
an attempt to show that through the power of Allah the Jewish religious claim on Palestine
becomes invalid (even though Moses is considered a Jewish prophet).
35

36

See Note 29, above.

The author of important collections of hadiths . Three of the collections are called AlKabir (The large [book]) , Al-Awsat (The middle-size [book]) and Al-Sadghir (The small-

size [book]). This hadith gives the seal of authorization to the Muslim rights over
Palestine and the right to expel the Jews from it.
37

Jerusalem and Mecca , Ula al-Qiblatayn , i.e., Jerusalem 's epithet in Islam is the first of
the two directions of worshippers. That is because initially Jerusalem was turned to in
prayer as it is in Judaism, but later Mecca was chosen as the direction.
38

Mecca and Medina .

39

Ribat , that is, maintaining the stations of the military guard in the outlying regions of
Islam, which were erected to defend the Islamic polity (Caliphate or Sultanate). However,
this term has a larger meaning and relates to any Muslim living in territory used as or
considered a front line for the Muslim holy warriors even though he or she is not
necessarily engaged in battle but in another capacity deemed as supporting the battle
(jihad).
40

That is, every act performed by a Muslim for the sake of jihad is worth this world and
everything in it.
41

A specific phrase of a very strong oath taken by a Muslim.

42

The version we used does not contain the word present but it does exist in other
versions.
43

For previous references to mustard seeds in religious literature, see Matthew 13:31 and
17:20, Mark 4:31 and Luke 13:19.
44

The Freemasons are an international order which, because of its secretive nature, is
often used in anti-Semitic literature as part of an international Jewish plot of the sort that
appears in The Protocols of the Elders of Zion .
45

The Rotary is an international organization founded at the beginning of the 20 th century

in Chicago which has since opened branches all over the world. Its members are
businessmen and philanthropists, and its purpose is to provide aid for the needy and to
bring people of all groups and nations together. As a strong, active worldwide organization
backed by rich individuals, it is tempting to say it is run by Jews and part of the anti-Semitic
myth of the world Jewish conspiracy to take over the world, as noted in The Protocols of
the Elders of Zion .

46

The term fundamentalist Muslims ( al-islamiyyin ) use to refer to themselves.

47

Jahali refers to the period of ignorance in the Arabian peninsula before Islam, during
which the belief in material artifacts (paganism) was more prevalent, prominent and
appreciated than spiritual matters.
48

That is, the material aspect.

49

That is, emphasizes the materialistic side as opposed to the spiritual side.

50

A famous tradition relating to a tribe in the Arabian peninsula at the dawn of Islam, whose
just behavior and solidarity, whatever situation they were in, became models in Islam.
51

The implied comparison between Jews and Nazis appears below as well.

52

The reference is to a well-known hadith according to which Muslims are likened to the
human body: when one of its members is hurt.
53

All voluntary international organizations. The Lions, like the Rotary, was founded in the
United States at the beginning of the 20 th century to aid the needy all over the globe, and
it has many branches. Its Website is http://www.lionsclubs.org .
54

All myths based on Christian European anti-Semitism, as expressed in The Protocols of

the Elders of Zion . They repeat ad nauseam the libel that the Jews want to take over the
world and are responsible for every evil that exists.
55

The Islamic Caliphate state.

56

A reference to a well-known hadith. Infidels here also means Jews and Christians.

57

Some of the versions of the Hamas charter read It is not a matter of chance the verse
ends with the words if only you will understand.'
57

Ijtihad : the making an independent legal judgment by a qualified Muslim scholar (

mujtahad ) based on an intensive study of religious Muslim law. It means that they do not
deviate from the religion of Islam and their use and actions are within the acceptable
framework of Islam.
58

Mistakenly referred to in some versions of the Hamas charter as Verse 102.

59

The original Arabic uses two words which are virtually synonymous.

61

A well-known hadith encouraging the Muslim believer to do his best to seek the truth. In
reality it enables Hamas to take a position suitable to it in any issue.
62

The term Crusaders in Arabic ( salidi ) as a reference to Christians has negative

connotations, unlike the terms masihi or nasrani , references to Christians as a religious
minority.
63

Part of a famous verse which serves as the slogan for radical Islamic movements from
the Muslim Brotherhood to the Palestinian Islamic Jihad, and expresses their desire to
frighten the enemy.
64

These are often-quoted verses written by the seventh-century Arab poet, Rabi'ah ibn
Amir ibn Anif, nicknamed Miskin al-Darimi.
65

A quote from a hadith.

66

The Arabic term qutr (plural aqtar ) denotes not merely one Arab state of many, but a
region considered part of a larger Arab supra-state. It is mostly used in the Arab
nationalistic ideology, which is by nature secular.
67

Fath Mubin mentioned in Surah 48 (Al-Fath) Verse 1 it has positive connotations

apparently linked to Muhammad's victory after the Hudaybiyyah agreement, a 10-year
cease-fire agreement signed in 628 AD (and lasting until 630 AD) between the prophet
Muhammad and his enemy -- the infidels of (his own) Quraysh tribe, as a result of which he
was later very successful on the battlefield.
68

I.e., Ein Harod in the Jezreel Valley in the northern part of the State of Israel.

69

Saif al-Din Qutuz was the Mameluke Sultan of Egypt from 1257 AD until his death in
1260 AD. The commander of his army, Al-Zahir Baybars (1223-1277 AD) defeated the
Mongols at the battle of Ayn Jalout.
70

Aslafihim in the original: the first generation of distinguished Muslims, considered the
ideal figures for devout Muslims, especially radical Muslims in the modern world.
71

The usual closing words of Muslim speeches or sermons given in mosques.

END OF BREAK

SUNSTAR CONTINUES:
Every part of me wants to believe this story about the son of
a Hamas leader becoming a Christian, but another part of
me puts his guard up and chooses not to join the club of
gullible Christians who dont understand ESPIONAGE
TACTICS and are unwilling to protect themselves, their
families, their communities or their countries because they
follow the SUICIDE VERSION OF JESUS CHRIST! Do you
even understand just how many APOSTATE CHRISTIAN
groups there are? Too many.
Sure, I would LOVE to see all members of Hamas repent and
turn to Jesus Christ and turn in their weapons to Israel as
this young lad claims. But Im not convinced this former
Hamas member became a Christian and I have every reason
to justify my skepticism for the protection of Americans in
San Diego. Hamas knows that Yousef would be a prize to
our intelligence agencies who would bring him in for
questioning so he can gather intel and what a better way
than to USE and EXPLOIT Christian organizations to spy on
Americans and prepare for the next 9-11, which will most
likely be in the form of a Weapon of Mass Destruction. Now,
you can sit and interview Whoopie Goldbergs philosophy or
Oprahs philosophy, or Barack Obamas philosophy, and quite
sympathize with them for how ROBBED they all were as the
victims of a victimized history and you can sit around crying
all day about what a victim you are, but in reality, after 9-11,
everyone was questioning who was responsible for 9-11,

while ignoring what Bill Clintons CATASTROPHE did to us

long before 9-11.
When you read the book entitled: INFILTRATION by Paul
Sperry, read all the paragraphs with the word: SAN DIEGO
and you will discover that this son of Hamas is surfing right
next door to the same organizations and mosques that the
9/11 hijackers got asylum in.
During this time of war, its not a good idea to have MOSAB
HASSAN YOUSEF in the same city where the 9-11 hijackers

gained their fame and attended Islamic mosques. Truly,

I want to go down and shoot the bastard. He and his
father, despite his denials, were part of an organization
that blew up innocent Israeli women, babies, children,
and elderly people who were going about their business.
This son of Hamas is now surfing on the California coast
and God only knows, as he shacks up with some little
Christian group, what Islamic contacts in San Diego
he is coming into contact with perhaps the same
circles INFILTRATION came into contact with.
I am all for MOSAB HASSAN YOUSEF becoming a Christian,
but after reading INFILTRATION I look upon him as another
embarrassment for our intelligence agencies as he COULD
VERY WELL BE A SPY for Hamas, posing as a Christian to
gain intel. In the world of espionage, CHRISTIANS cannot
compromise our NATIONAL SECURITY for the sake of
accomodating people who CLAIM one thing, but MIGHT

actually be doing another thing. The son of a Hamas leader

becoming a Christian? Maybe. Most likely not. I would
treat him as a subversive just trying to get attention for
himself and seeking intel for his father, who is still in
Hamas. Christianity teaches love for our enemies, sure, but
does not teach you to hand your weapon over to them and
let them shoot you! And that is exactly what democrats
have done to America handed our weapons over to the
enemy to exterminate us all. This is the INTERNATIONAL
PLAN not to save the world but to destroy it and you cant
really trust MOSAB HASSAN YOUSEF because his father
is still part of an organization that is murdering Israeli
citizens.
that piece of land? Uhm. No. Its THE LAND OF
ISRAEL/THE STATE OF ISRAEL and if Mosab Yousef is
serious about his Christian faith, he would
acknowledge Torah Law and this simple reality, that
Israel is not just that piece of land or THAT LAND, but
Gods Eternal Covenant with Ethnic Israel to inherit that
land as an immovable Rock Covenant. There are plenty
of apostate Christian groups who violate the first two
commandments of the Ten commandments and believe
THE TWO-STATE SOLUTION is the answer to world
peace.
The real answer to peace is to transfer Palestine to
Arabia, arrest all Muslims in America and export them
back to the Islamic country of their choice. Thats a

better plan. But instead, we are allowing the

democratic/communistic/Islamic alliance to permit the
possibility of exterminating all Americans all in the
names of PEACE and TOLERANCE.
Does anyone KNOW which Christian Church this son of
Hamas resides in? VERY STRANGE! But IF it was
actually believable that he suddenly converted from
being a terrorist whose organization murdered Israeli
citizens to a humble, devout Christian, then we could all
give him a pat on the back. He gets no applause from
me.
As surely the God of Israel will not give His Throne to
Satan, He has provided an Eternal Covenant with the
Land and People of Israel to inherit this PROMISED
LAND. Gods PROMISES cannot be CHANGED by a
Barack Obama, Bill Clinton, George Bush, CIA, KGB,
UNITED NATIONS PEACE PACT which is in clear
violation of the God of Israels Will. Sure, the God of
Israel allowed Jerusalem to be taken over several times
throughout history by their enemies but it was only
because Israel had practiced a TWO-STATE SOLUTION
with Molech, Chemosh, and Ashtoreth which demanded
the sacrifices of children in the fire to appease their
idols. Setting up a second seat next to or in place of,
the God of Israel is against Gods Laws. The world
community hasnt learned from the Rise and Fall of The
Roman Empire or the Fall of Israel.

THE DEMOCRATIC PARTY in America and all the

apostate groups who support them are like the Pharoah
in the movie: THE EGYPTIAN. Victor Mature warned the
Egyptian Pharoah, who had his head in the clouds, of
what would happen if the Hittite enemy invaded Egypt
and that Victor Mature should prepare for an all out war
and defend the homeland, but the Pharoah was
dedicated to a massive super cult, a sun god who was
not Jesus Christ, but a false jesus made to look like
jesus, while chanting: HOW BEAUTIFUL IS OUR GOD!
Egypt was destroyed and their people slain.
After SHARING Rome with the barbaric Germans, the
Germans destroyed Rome.
After ISRAEL practiced religious pluralism next to the
God of Israel, Israels enemies destroyed them.
AND THIS IS WHAT WE ARE READING IN THE FUTURE OF
AMERICA, unless 305 million of Americans FIGHT,
OPPOSE, AND OVERCOME ALL THE ISLAMIC MOSQUES
AND GROUPS RISING UP AGAINST THEM IN THIS
COUNTRY!
Israel also has a terrifying war to fight who is going to
stand up and defend them during these last days?
Certainly NOT MOSAB HASSAN YOUSEF who calls the
LAND OF ISRAEL that piece of land!

What is one of the SPIRITUAL MARKERS of THE BEAST?

The Holy Bible, New International Version . Rev 13:11.

Rev 13:11

Then I saw another beast, coming out of the earth. e He had two

horns like a lamb, but he spoke like a dragon. f

THIS IS THE ISLAMIC STRATEGY! PEACE LIKE A LAMB

WHILE SPEAKING LIKE DRAGONS, first against ISRAEL and
then against everyone else, after doing what?

The Holy Bible, New International Version . Da 9:27.

Da 9:27

He will confirm a covenant with many for one seven. 33

In the middle of the seven 34 he will put an end to sacrifice

and offering. And on a wing of the temple he will set up an
abomination that causes desolation, until the end that is
decreed o is poured out on him. 35 36
This is the DEMOCRATIC STRATEGY; The Communist
Strategy; the Islamic strategy and the beasts war strategy.
And can we depend on Rick Warren, whose mentor was a
Rockefeller sponsored individual by the name of Peter
Drucker? Shall we turn to the New Age names listed in Rick
Warrens book: PURPOSE DRIVEN LIFE for inspiration of
PEACE, LOVE, UNITY, RESPECT?

Yes, these are Christs IDEAS, but, be certain that for every
Islamic Caliph and Roman Caesar who had the upper hand
over Jews and Christians, that Jews and Christians were
slaughtered and this is THE ENDGAME plan of the beast and
all those who worship him. They will forsake the God of
Israel for the pleasures and treasures of this world, the
resources of which belong to Earths Real Owner, the God of
Israel. Also remember that enemy victories will be short
and the time for earths inhabitants is coming to an end
soon.
I call upon you all to read the entire OLD TESTAMENT of the
Holy Bible and learn about why Israel was destroyed and
what prompted the God of Israels displeasure with them
and understand, WHY the end is coming to all nations soon.
Check out: www.sperryfiles.com
ANOTHER WAY TO DETERMINE THAT THIS SON OF A
HAMAS LEADER IS LYING TO THE AMERICAN PUBLIC, is his
own statement:
JONATHAN HUNT: Do you believe Israel blameless in the conflict?
MOSAB HASSAN YOUSEF: Occupation is bad. I can't say Israel I'm not against
any nation. We can't say Israelis, we can't say Palestinians, we're talking about
ideas. Israel has the right to defend itself, nobody can (argue) against this. But
sometimes they use (too much) aggression against civilians. Sometimes many
civilians were killed because those soldiers weren't responsible enough, how
they treat people at the checkpoints.
My message even to the Israeli soldiers: at least treat people in a good way at the
checkpoints.
I SPOKE directly with an Israeli woman called: FAITHFUL who gave me the FULL
STORY of what goes on at CHECKPOINTS and Mosab Hassan Yousefs testimony

shows proof that he is just playing a game and toying with Americans, so dont believe
his testimony, which is a lie on this point about CHECKPOINTS in Israel. Here is my
exchange with a FAITHFUL ISRAELI who was against Olmert and against what Israels
enemies were doing to Israeli soldiers at the checkpoints. My source was and is
trustworthy, reliable, & true. Her father served under Bush and she had an insiders
view of everything:
Machsom Watch, or Checkpoint Watch (also Women for Human Rights), is a group of
Israeli women who monitor Palestinian human-rights at Israeli checkpoints. [1] The self
described "politically pluralistic" human rights organization is composed of Israeli women to the
exclusion of men, with a "bias towards mature, professional women" who tend to have a "liberal
or leftist background" [2] Machsom Watch claims to have 400 members, notably including
Israeli Prime Minister Ehud Olmert's daughter Dana. The word machsom is Hebrew for
"checkpoint," referring to Israeli Defense Forces checkpoints which control movement between
different parts of the West Bank and between the West Bank and Israel.
According to its website, the group's aims are to monitor the behavior of soldiers and police at
checkpoints; ensure that the human and civil rights of Palestinians attempting to enter Israel are
protected; and record and report the results of their observations to the widest possible audience,
from decision-makers to the general public.[1] Some members also see their role as protesting
against the existence of the checkpoints.[2][3]
Machsom Watch has been accused of being hostile towards the Israeli troops and disrupting the
operation of checkpoints. Some of its charges against the troops have also been disputed as false.
[4] [5]
. On May 2006, the group sent a letter of apology to the IDF after activists had verbally
attacked a soldier, called him "Nazi" and other profanities as he asked Palestinians to stand in
line for an ID check at a checkpoint leading into Israel. [3] In response to the group's contentions
regarding the checkpoints, the IDF has implemented training procedures intended to ensure
respectful behavior by soldiers.[6]
Machsom Watch was founded in 2001 by Ronnee Jaeger, previously a human-rights worker in
Guatemala and Mexico; Adi Kuntsman, who arrived in Israel from the Soviet Union in 1990; and
Yehudit Keshet, a former Orthodox Jew and scholar of Talmudic ethics, in response to
allegations of human-rights violations at IDF and border-police checkpoints. The group has also
expressed concern about what they say is "the excessive Israeli response to the Al Aqsa Intifada
and the prolonged closure and siege of villages and towns on the world trade center".[1]
In early 2002, following a wave of suicide bombings, the IDF checkpoints increased in number
and Machsom Watch's activities attracted Israeli media attention, bringing more volunteers,
including a few men. The involvement of male monitors was not a success.
Israeli Checkpoints Should Get Rid of Those Liberal Left Women!

WOMEN FOR ISRAEL'S TOMORROW - WOMEN IN GREEN

To:
Report No. 1
June 2004 Summary
Operation "Defense of IDF Soldiers and Border Guard Policemen
and Women at the Checkpoints from Harassment by ProPalestinian Activists"

Presented as a public service by Women for Israel's Future Women in Green

POB 7352 Jerusalem 91072
tel.: 02-6249887 fax.: 02-6245380
www.womeningreen.org.il

This is the first report of our activity on behalf of our

soldiers and policemen and women at the checkpoints.

A few months ago our movement launched teams that

regularly visit IDF checkpoints in order to support the soldiers
and Border Guard policemen and women, to help them to contend
with acts of harassment by the extreme leftist women of
MachsomWatch, who, as we will show in the report, endanger the
lives of soldiers, as well as the lives of all the citizens of the

State of Israel.

The women of MachsomWatch are presented by the media in

a positive light, as "nonpolitical observers who are concerned
only for the humanitarian needs and human rights of the
Palestinians." Upon examination, however, it becomes clear that
the truth is completely different. As we shall see (below), this is
an organization that is part of the extreme left, with a proPalestinian (totally anti-Israel) agenda that serves the interests
of the Palestinians and harms the State of Israel. The
organization fosters negative sentiments, to the point of
revulsion, towards the State of Israel and IDF soldiers. It receives
funding from foreign, anti-Israeli elements, and its true goal is
purely political: opposition to the very existence of Israel
anywhere in Judea, Samaria, and Gaza, and to this end it aids the
Palestinian Arabs in their war against Israel. The conduct of most
of the women matches the aim of the organization: shaming our
soldiers in front of the Arabs, interfering with the soldiers
important work, assisting all the Palestinians who want to cross
the checkpoints (even if they have been marked as dangerous to
the Israeli public), filing complaints against soldiers that are
based on lies by the Arabs, and the like.

To now we have established teams that visit the checkpoints

in the Jerusalem area and in Samaria.
We will soon have teams operating in the south, as well.
After reading the report, we are certain that its readers will
reach the same conclusion: the activity of the MachsomWatch
women must be stopped, and they must be prevented from
reaching the checkpoints. They are not "just another

humanitarian organization" - they endanger the soldiers and the

Israel public. We also call for an examination of the legality of
their actions. Prima facie, it would seem that they are guilty of
the crime of disturbing a public servant in the fulfillment of his
duties.

The following report details instances in which a member of

our organization encountered MachsomWatch women and
documented their behavior. The report also provides testimonies
by soldiers and Border Guard policemen regarding this activity by
the leftist women. It should be noted that our report could have
been much more convincing if we had been able to publish the
names of the soldiers and Border Guard policemen and women,
and even interview them with a video camera. They all, however,
refused; they fear exposure and being placed on the black list of
the MachsomWatch women. Some say that they are forbidden to
even speak about the subject. Others tell what happened to them,
on condition that they remain unnamed.

All the soldiers and Border Guard policemen and women at

the checkpoints agree on one thing: the time has come for
someone to defend them against the acts of harassment by the
extreme left and the Arabs. They praise the activity of Women in
Green and hope that it succeeds.

For more details of our operation, and articles that appeared

in the media about Operation "Defense of Our Soldiers and Border
Guard Policemen and Women at the Checkpoints," see our Web
site:

www.womeningreen.org.il
And THIS IS THE TRUTH about Israeli checkpoints. This son of a
Hamas leader turned Christian needs to go back to school and
get a proper education about just how many Israeli citizens were
murdered by Hamas.

Report on the Activity of the Women of MachsomWatch

A Random Sample

The a-Ram Checkpoint, about 15 Women in Green:

the shaming of a Border Guard policemen because of his ethnic
origin (Druze)
A Druze Border Guard policeman tells us how the MachsomWatch
women act in a manner even more despicable than usual with Druze. When
they see his name on his name tag, they ask him: "Oh, you're a Druze? We
won't even talk with you. You are even worse than the Jewish soldiers. You
collaborate against your people!"

Testimony of Anita, Gitt Checkpoint in Samaria, beginning of June

2004
The orders given to the soldiers were clear: no one under the age of 36
was to be allowed entrance. A 35-year-old Arab arrives. The soldiers tell him
to go home. The MachsomWatch women intervene on behalf of the Arab, and
demand that the soldiers ignore the orders. "He looks OK, he doesn't look
dangerous, let him cross," they say and exert pressure.
The soldier relates that just a day before a large explosive charge was
discovered in an automobile - a charge that was meant to explode in an
Israeli city.

June 6, 2004, Checkpoint 300, at the entrance to Bethlehem, 7:15

a.m.
As she does every day, Jacqueline arrives at the checkpoint, in order to
encourage the soldiers and bring them drinks. She encounters three
MachsomWatch women. There are only two soldiers where the Arab vehicles
are to pass through. The leftist women keep one of the soldiers occupied
without respite. All the time they keep asking him questions about every
minor thing that happens at the checkpoint, harassing him and disrupting his

work.
The result: this soldier cannot check the Arabs, because he is busy with
the extreme leftist women. The other soldier remains alone to check the
Arabs who are entering. Because he is alone, the waiting time of the Arabs is
extended. This puts pressure on the soldier, and annoys the Arabs. What is
ironic, is that afterwards the Arabs complain to the MachsomWatch women
that they are waiting in line too long!

The testimony of Sarah and Nadia, who visit Checkpoint 300 sel
times a week, and encounter the leftist women:

1) The MachsomWatch women go among the Arabs, give them their

telephone number, and prompt them to complain against IDF soldiers.
2) MachsomWatch women walk about in forbidden areas, within the lane for
the Arab automobiles, attempting to enter the other side of the checkpoint.
The result: instead of the soldier concentrating on examining the
Arabs, he must pay attention to the activity of the leftist women, protect
them, and ensure that they are not endangering themselves. In this manner
they interfere with the soldier's work, and prevent him from effectively
examining the Arabs.
3) When there are detainees, then the leftist women incessantly bother the
IDF soldiers and intervene in everything: "Release the detainees - Why is
he/she detained already for a quarter of an hour - When will you release the
detainees." If the soldier does not respond, they immediately pull out the
telephone numbers of everybody who is anybody in the army and call to
complain.
It should be mentioned that a "detainee" is an Arab without an
entrance permit. The reason why he or she lacks a permit is because, for
various reasons, the army suspects that he or she poses a danger to the
public. According to the law, such an individual is not permitted to even
approach the checkpoint, due to the danger that he or she poses to the
soldiers and the Israeli public. But all this is of no interest to the women from
the left; they intervene unremittingly, and demand that our soldiers release
the detainees.

Kalandia checkpoint, June 7, 2004, 9 a.m.

This time, as every week, we are a larger group of Women (and men)
in Green, with the Mekor Rishon reporter Hodayah Karish-Hazoni
accompanying the trip. The soldiers report to us that the leftist women came
earlier that day.
The MachsomWatch women physically defend Arab rioters:
We record the testimonies of soldiers who tell us that the
MachsomWatch women form a human shield for the Arabs who throw stones
at our soldiers.
"They drive us crazy," relates one of the soldiers, "a few days ago the
Arabs began to throw at us stones, objects, whatever you want. [...] I raise
my weapon, and she stands in front of me, between me and the throwers,
and she says: 'Shoot me if you want.'"
The false charges against our soldiers:
Another soldier tells us: "They come every day. I saw that they give the
Arabs money, but mainly - they encourage them to complain against us, and
the Arabs lie to them freely. One Arab pushed me, so I pushed back. He ran
to one of the women and complained that I beat him. You're lying, I said to
him, but he only smiled and went away. She took down my personal details. I
don't know what she'll do with this."

The a-Ram checkpoint, June 7, 2004, 10 a.m., with the same group
from Women in Green and the Mekor Rishon reporter Hodayah
Karish-Hazoni
"You missed the leftists," the Border Guard policemen say, "they were
here at 7:30." O. has been stationed at the checkpoint since January. He tells
that two days after the broadcast of the Pegishat Laylah [Night Encounter]
[television] program in which Koby Meidan interviewed Lia Nirgad, a
MachsomWatch activist who recently published a book on her checkpoint
experiences, "she came here to the checkpoint. I asked her: Do you really
believe that the checkpoints aren't effective, like you said on television? She
said that she is aware of the fact that the checkpoints prevent some of the
terror attacks. I go crazy from this: What, preventing some of the attacks is

unnecessary? On television she said they intervene only if they are asked,
but this is incorrect. They come and start talking with detainees and with
prisoners - asking why this is this way and not that. A few weeks ago we
discovered an illegal. We brought him up to the watchtower, so that he and
the other detainees would not match their stories. He sat there in the
watchtower on a chair, and waited like a king, while I stand here like a dog.
But she came with her demands: 'Why did you bring him up there? Bring him
down, let him be with his friends.'"

The testimony of a Border Guard policeman at Checkpoint 300, June

16, 2004
"One time MachsomWatch women came, and one said 'Good morning'
to me. I didn't answer her, I just asked her to move away and not bother us.
She immediately wrote down my name and said, 'Because you didn't say
"Good morning" to me nicely, I will file a charge against you because you're
not educated.'"

Checkpoint 300, the entrance to Bethlehem, June 27, 2004,

Jacqueline
"Arabs without permits manage to circumvent the checkpoint and
enter Gilo through Tantur [Ecumenical Institute for Theological Studies,
between the checkpoint and the Gilo neighborhood]. Today Border Guard
policemen are stationed at the entrance to Tantur and they succeed in
stopping the illegal infiltrators. MachsomWatch women arrive there and
demand that the Arabs be released. They also ask the Border Guard
policemen to help them in removing this 'glue' from them" (they are referring
to Jacqueline, who followed them continually).

The M. K. Shuafat checkpoint, June 30, 2004, Anita, Tsippi, Devorah

"A Border Guard policeman relates that he goes around in his jeep. He
usually does not stand at the checkpoint. He frequently receives an order to
set up a spot checkpoint at different places, within Jerusalem as well, such as
on Road No. 1. What is amazing is that MachsomWatch women immediately
arrive and begin to hassle them. He tells us that they bother them greatly

and he wants to distance them, or send them away, but he does not know if
he is permitted to do so."

The testimony of a Border Guard policeman at the a-Ram

checkpoint, June 30, 2004
"MachsomWatch women ruin our lives, they don't let us work, they
open cases against us without end. When they are at the checkpoint, all the
policemen look at them and don't concentrate on their work, because they
tape us and shout at us all the time. They act as if they are the commanders
of the checkpoint."

Checkpoint 300, the entrance to Bethlehem, July 5, 2004, 7 a.m.

Jacqueline
Close to 50 Arabs without permits were caught by the Border Guard in
the area of the checkpoint. Jacqueline arrives. The MachsomWatch women
are not there. One Border Guard policeman says to Jacqueline, pointing to all
the detainees: "If the leftist women had been here this morning, we would
not have been able to accomplish this work." Jacqueline asks for an
explanation. He explains: "The moment that we detain them, the Watch
women intervene, they want us to release them, they bother us all the time."

Checkpoint 300, the entrance to Bethlehem, July 8, 2004, 7 a.m.

Jacqueline
Jacqueline arrives. Four MachsomWatch women and a foreign
photographer from Italy accompanying them are there. The photographer
incessantly takes pictures of the soldiers, despite one soldier having
expressly, and politely, asked not to photograph. The photographer
continues to take pictures of him, against the soldier's will.
Jacqueline asks the soldier why he doesn't distance the photographer
who is bothering him in his work, why he doesn't ask for his personal details,
why he doesn't file a complaint against the photographer and against the
MachsomWatch women who brought the photographer. The soldier replies
that he is afraid of the consequences of a complaint or action against them.
He is afraid of what they will do afterwards with the photographs of him. He

is afraid that they will publicize his pictures on the Internet and that they will
tell lies about him. Jacqueline positions herself in front of the photographer,
to prevent him from taking pictures of the soldiers.

The Erez checkpoint, the case of Kfir Ohayon - April 2004

An extreme proof of the harm done tby he leftist women at the
checkpoints was given in April. Sergeant Kfir Ohayon was killed in a terrorist
attack at the Erez checkpoint by an Arab suicide terrorist. The day of the
funeral, April 18, 2004, Avi Ohayon, Kfir's father, was interviewed on the IDF
Radio program of Micah Freidmann. Avi related that, a few days before the
attack, his son was scolded by a leftist activist because of Kfir's attitude to
an Arab suspect who refused to raise his shirt for a check. Kfir was very
worried, and was afraid of the complaint that this leftist activist filed against
him. According to Kfir's father, the attack could have been prevented if his
son and his fellow soldiers would have been backed by their commanders,
and they would not have feared the criticism of the left.
The following are sel quotations from the interview:

Avi Ohayon: "One of the Arabs did not uncover his body, then Kfir aimed his
weapon at him and took him to isolation. Some woman, some Israeli woman
who saw this, went and complained to his commanding officer. She said that
she would make a commotion about this, that she would complain to the
police investigators. Then his officers came to Kfir, his commanding officers,
and they told him that he shouldn't have done that. My son lost his selfconfidence. He called me at twelve-thirty at night. He told me, 'Father, I don't
know what to do any longer. I can't sleep any longer, I have fears. Fears that
I'll be put up on a complaint, and that they'll put me in jail.'"
Micah Freidmann: "And you think that this might have influenced his
behavior yesterday at the checkpoints?"
Avi Ohayon: "This undoubtedly had an influence, it influenced his fellows as
well, there's no doubt that they were afraid. [...] The problem is that their
commanders are afraid. They are afraid of the criticism, they are afraid of the
press, they are afraid of the photographer, the photographers' lenses, this is
what they fear. In the end, we ourselves are killing our soldiers. We, with our
own hands, are consuming our soldiers, killing them.

"[...] Our problem is that the left is the ruin of the State of Israel. The
left is a disaster.
"[...] Every soldier has to stand before a lawyer, a lawyer has to be
right next to him, so that he won't commit some crime... how can this be?"

The Conclusion:
The MachsomWatch women disturb soldiers and policemen in the
fulfillment of their duties, and thereby endanger the security of the
soldiers and the security of the citizens of the State of Israel

* In the report we brought only a few examples of the testimonies regarding

the activity of the MachsomWatch women. In every visit to the checkpoints
we bear witness to the extremely problematic behavior of the women from
the extreme left. In the instances in which we did not personally encounter
them, we hear at first hand more and more stories from the soldiers and
Border Guard policemen of how the MachsomWatch women interfere with
the soldier/policeman in the fulfillment of his duties, and thereby endanger
Israeli security.

* The activity of the MachsomWatch women is similar at all the checkpoints:

They arrive, position themselves as close as possible to the soldiers
and the Arabs being checked, incessantly photograph the soldiers,
photograph the license plates of the jeeps, intervene in the security
decisions of the soldiers, record the names of the Border Guard policemen
and women, scream at the soldiers, threaten that if they do not act as the
women want, they will complain; and indeed, many times they pull out a list
of senior army officers and loudly complain to them against the
soldiers/Border Guard police - while standing next to the Arabs, boasting that
they have a direct link to GOC Central Command Kaplinsky and Chief of the
General Staff Bogi Ya'alon, in order to threaten the soldier. In short - all
manner of actions that are meant to terrorize the soldier at the checkpoint,
to put pressure on him and intimidate him, and to interfere with his work.
Instead of engaging in their important work, the security forces are

compelled - on a daily basis - to occupy themselves with the whims of the

MachsomWatch women. When the women of MachsomWatch are
present at a checkpoint and interfere with the work of the
soldiers/Border Guard police, the probability that a terrorist will
enter without being caught is unquestionably much higher.

* The MachsomWatch women let the soldier understand that, in

their opinion, he is the enemy, and the Arab is the "poor unfortunate." In
addition to the testimonies appearing in this report, we were given additional
proof of this in the book Horef be-Kalandia (Winter in Qalandia) by Lia Nirgad,
a MachsomWatch activist, that describes her activity at the Kalandia
checkpoint over a period of 16 weeks. Nirgad thinks that "it is necessary to
quarrel with the soldiers. For all the good and unchanging reasons. For it is
necessary for them to stop for a minute, for it is necessary for them to hear.
For it is necessary to interfere with them acting automatically. For it is
necessary to express the voice of the Palestinians." In another place in the
book she compares the situation at the checkpoints to "Germany in the
1930s," with the soldiers reminding her of German soldiers.

* The soldiers/Border Guard police feel that they have no backing:

Soldiers and Border Guard police told us that charges have been filed
against them because of completely unfounded and even false complaints by
MachsomWatch women and Arabs. This is especially grave for the Border
Guard policemen and women, because these cases hang over them in
civilian life, as well. When we ask the soldiers and Border Guard police why
don't they exercise their legal right to complain against the MachsomWatch
women, they give us different excuses: "Who has time to go to the police
station?" "How will this help?" "I won't start to take action against them,
because they will take their revenge against me and file charges against
me." Many soldiers are totally unaware of the fact that, as public servants,
they are entitled to complain against those who disturb them in their work.

Soldiers/Border Guard police feel abandoned by some of the officers,

who are primarily concerned with advancing their military career, and fear
that they will not be liked by the women of the extreme left and by the Israeli
media, that casts the MachsomWatch organization in a favorable light. These

officers do not want to appear in the "blacklist" of the MachsomWatch

women, and therefore, not only do they not dare complain against these
leftist women, they even pretend that these women "are not interfering."
Anyone who follows the activity of MachsomWatch knows that this is not
correct.

The barrier of silence must be broken, and the public must be

informed: Just who are the women of MachsomWatch? Is there a
need for the MachsomWatch organization?

Just who are the women of MachsomWatch?

The Association for Civil Rights in Israel recently awarded the women of
MachsomWatch the "Civil Rights Emblem" for their activity, and favorable
articles about them have been published in the media. The question arises:
What could be so bad about a group of middle-aged women who stand at the
checkpoints? Admittedly, the presence of the women of MachsomWatch at
times is a bother, and interferes with the soldiers' concentration - but is their
activity so dangerous and terrible? Is it really necessary to follow their every
action and remove them from the checkpoints? Do they really serve the
enemy and collaborate with him?

The answer to all these questions is yes! As proof, here is the following
quotation from an article by Gil Ronen, in the BiSheva newspaper, from May
20, 2004:
But the women of MachsomWatch apparently did not tell the senior
officers [with whom they frequently meet - N. M.] the whole truth
about themselves. Otherwise, it is difficult to believe that they [the
officers] would want to meet with them. The leaders of the
organization are from the most extreme strain of the left. [...] The
leaders of MachsomWatch, Adi Kuntsman, Ronni Yager, and Yehudit
Keshet - the Marx, Engels, and Lenin of MachsomWatch - are very far
from being innocent grandmothers.
Adi Kuntsman presents herself on the MachsomWatch site as a
militant feminist. When she speaks with journalists, and not with IDF

generals, she also says that she is not a Zionist. [...]

In 1999 Ronni Yager and Yehudit Keshet signed a petition
demanding that the US and the NATO forces bomb the forces of
Milosevic in Serbia. In 2001 Keshet and Kuntsman signed a petition in
support of [Balad MK] Azmi Bashara, after he traveled to Syria where
he agitated against Israel. That same year Keshet composed a letter
to the American feminist Susan Sontag, in which she demanded that
[Sontag] refuse to accept the Jerusalem Prize for Literature. The
letter, that was sent to Sontag by the "Women's Coalition for Peace,"
a group of organizations that includes Women in Black,
MachsomWatch, and other pro-Palestinian organizations, called upon
Sontag to completely boycott Israel, and to refuse to accept the prize
from Minister Olmert and the then Foreign Minister Peres, because
both were involved in "serious human rights violations." From time to
time Keshet also publishes announcements on the Internet forum of
the Israel radical left, along with communiques from the Israeli
Communist Party.

In an interview with the Mekor Rishon reporter Hodayah Karish-Hazoni

(June 18, 2004), the MachsomWatch spokeswoman confirmed that the
organization receives funds from the New Israel Fund, and also from "peace
organizations" abroad - which are synonymous with "pro-Palestinian and antiIsraeli groups." In that same interview Dagan admits that the MachsomWatch
organization is "definitely political, and the common factor shared by all its
members is opposition to the occupation, opposition to the policy of the
checkpoints, the closures, and limitations on movement. Our goal is totally
political."
The question that must be asked is: How does the IDF allow the
MachsomWatch activists, who act as foreign agents on behalf of the enemy,
to approach the checkpoints and harass the soldiers and Border Guard
policemen and women?

Is there a need for the MachsomWatch organization?

It is correct that humanitarian questions arise at every checkpoint. The
army does not ignore this issue: at each IDF checkpoint there is a
representative of the Liason and Coordination Administration who deals with

humanitarian cases. There are also reserves officers who are defined as
"Humanitarian Officers."
Additionally, the army operates the IDF Humanitarian Center that
treats all the human rights questions that arise at the checkpoints. There is
no need for the presence of activists from the extreme left.

In Conclusion
The time has come to break the wall of silence and shout from the
rooftops:
The women of MachsomWatch masquerade as "objective observers
concerned for the humanitarian rights of the Arabs" - but the truth is that
they are extreme left activists, who are hostile to the State of Israel and IDF
soldiers, and act in order to advance the Palestinian cause.

Their activity is meant to aid the Arab enemy in his war against
us.

They endanger the lives of our soldiers/Border Guard police at

the checkpoints and the security of the citizens of Israel. An
immediate stop must be put to their activity, and to examine if they are not
legally culpable for disturbing a public servant in the fulfillment of his duties.

The senior ranks in the army and the police must support the
soldiers and policemen and women at the checkpoints, and they
should be reminded that the women of MachsomWatch represent an
extreme splinter group that knowingly serves the Arab enemy. The
majority of the people of Israel is cognizant of, and appreciates, the
grueling and important work performed by the soldiers and police
for Israel's security. The members of the security forces at the
checkpoints are the ones who really guard the most basic
humanitarian right of every Israeli citizen: the right to live. For all
this, we offer them our heartfelt thanks.

Presented as a public service by Women for Israel's Future - Women in Green

POB 7352 Jerusalem 91072
tel.: 02-6249887 fax.: 02-6245380

INFILTRATION
[PAGES 227 233]
The Council on American-Islamic Relations has a few minor
requests of companies employing MuslimsCAIR says more
and more companies are showing an interest in its
workplace-sensitivity booklet. It says more than fifteen
thousand corporations and businesses nationwide have
ordered copies. And it says they are adopting its
recommendations primarily in response to the increasing
number of Muslim employees in the workforceThe Muslim
friendly procedures cited in its booklet are not really
requests; they are demands. And judging from the raft of
religious-discrimination charges it has filed, CAIR is more
vexatious litigant than advocate. Its employers guide
amounts to a subtle threat: do this or be sued.
CAIR says its championing Muslim rights, but its real
agenda is to Islamize the workplace. UPS, for example, has
revised its policy to allow for beards.CAIR keeps a full
stable of lawyers in its Civil Rights Department who
tirelessly solicit discrimination lawsuits on behalf of
Muslims. And they have the full backing of the federal
government.
As a result, charges of employment discrimination filed by
Muslims and Arabs have ballooned. Over the past three
years, EEOC has processed 944 claims against employers
alleging discrimination tied to the events of 9/11. And the

agency has obtained a total of $3.2 million for aggrieved

workers since 9/11.
Muslim bias complaints filed with the EEOC began to
accelerate with CAIRs founding in 1994, soaring from a total
of 178 that year to 334 by 2001. CAIRS civil rights squad
went on high alert after the 9/11 attacks, and complaints
more than doubled to 726 in 2002. Arab-bias complaints
also shot up after 9/11. Almost 700 employees of Middle
Eastern origin filed complaints against their bosses in 2002,
up from just 18 in 2001 and only 1 in 2000.
CAIR estimates it has handled more than 1,000 cases of
employment discrimination. The Michigan chapter of CAIR
alone defended in one year more than 76 Muslims whose
civil rights allegedly were violated, winning concessions
from employers such as KELLY SERVICES and WEBASTO
ROOFING SYSTEMS, according to the chapters 2000 tax
filings.
Here are other recent cases in which CAIR lawyers have
badgered employers on behalf of offended Muslims:
1. J.C. PENNEY
2. MCDONALDS
3. SEARS
4. OFFICE DEPOT
5. NIKE

6. DKNY
7. BURNS INTERNATIONAL SECURITY SERVICES
8. ADVANTEK INC
9. SEARS
10.

WHIRLPOOL

11.

BEST BUY

12.

DELTA AIRLINES

13.

UNITED AIRLINES

14.

ARGREN BRIGHT SECURITY INC.

The above companies above were sued for not

accommodating Islamic religious practices and beliefs and
for being discriminatory.

FBI severs ties with Islamic group

Human Events | Feb 04, 2009

By Rowan Scarborough
The FBI is severing ties with a national Islamic rights group that wins praise in the liberal media
but is seen by conservatives as a front for the radical Muslim movement.
The FBI for years has used the Council on American-Islamic Relations (CAIR) as a resource to
teach agents about Islam and on how to relate to Muslims during counter-terror investigations.
But the agency has began sending out letters to CAIR state chapters canceling planned FBICAIR gatherings "until further notice," according to Steven Emerson, who heads the
Washington-based Investigative Project.
"I congratulate the FBI for taking a long overdue action," Emerson told HUMAN EVENTS.
"CAIR has been one of the most radical groups in the U.S. that pretended to be moderate. This
deception successfully snared the media and government agencies."
CAIR's fall from grace is rooted in the FBI's investigation and the government's prosecution of
the Dallas-based Holy Land Foundation for Relief and Development (HLF). The Texas jury
convicted HLF this summer of charges it supported Hamas, a U.S.-designated terror group.
Hamas violently took control of the Gaza Strip in 2007. It was invaded by Israel in January in a
campaign to stop militants from firing rockets into southern Israel.
http://www.centerforsecuritypolicy.org/p17868.xml?cat_id=210

INFILTRATION
[PAGES 246 -259]
In June 1994, three Muslim activists established what has
become the most powerful Islamic pressure group in
Washingtonthe Council on American-Islamic Relations,
better known as CAIR. Two of the founders:
OMAR AHMAD
NIHAD AWAD
Were both born in the same PALESTINIAN REFUGEE CAMP
but did not know it until they met years later in America,
where they teamed up to start CAIR with an energetic
Muslim convert who emigrated from Canadaby 2000, CAIR
was able to move out of its cramped office into a modest
building on Washingtons K Street and into its own
multistory building almost in the shadow of the U.S. Capitol.
The source of the funding for the building, as well as some
of the groups projects, has been shrouded in mystery.
[BREAK: BILL CLINTONS JANET RENO FUNDED HAMAS]
JANET RENO FUNDS HAMAS

INFILTRATION [PAGES 246 TO 259 CONTINUED]

In an August 2002 court decision regarding the freezing of
terrorist assets in the U.S., a federal judge found that the
Islamic Association For Palestine has acted in support of
Hamas. The decision was issued in support of President

George Bushs earlier executive order freezing the assets of

the affiliated Holy Land Foundation for Relief and
Development, a large American Muslim charity now under
indictment for funneling money to Hamas.
In October 1993, eight months before CAIR was formed, the
FBI covertly recorded AHMAD and other IAP officials
professing their commitment to Hamas during a key meeting
in Philadelphia with five Hamas leaders and three top
executives of the Holy Land Foundation, according to
federal court records citing an FBI report. At the summit,
which took place in a Marriott hotel, IAP allegedly mapped
out a strategy to use the U.S. as a fundraising base for
Hamas, while agreeing to masquerade the illicit operation
under the cloak of charity to avoid U.S. government
detection. It was decided, the FBI wiretaps revealed, that
most or almost all of the funds collected by Holy Land
Foundation in the future would be steered to Hamas. The
charity, now shut down, shared officers and funds with IAP,
and both groups kept offices in the same Dallas suburb.
AWAD, like AHMAD, does not talk much about his pre-CAIR
days. But back when he was an IAP activist, he made his
support for Hamas publicly known. At a March 22, 1994,
symposium on the Middle East at Barry University in Miami
Shores, Florida, Awad said, After I researched the situation
inside and outside Palestine, I am in support of the Hamas
movement. Three months later, he and AHMAD founded
CAIR.

They are not the only CAIR officials with links to HAMAS:
Ghassan Elashi, related by marriage to Hamas leader
Marzook.
Rafeeq Jaber, took over for AHMAD as president of IAP and
is still involved in the terror-sympathizing organization.
Nabil Sadoun CAIR Board Director sat on the board of the
UNITED ASSOCIATION FOR STUDIES AND RESEARCH with:
Mohamad Nimer
NABIL SADOUN co-founded the Washington-based nonprofit
UASR with Marzook, who incidentally has enjoyed the public
support of CAIR since fleeing the country. CAIR has
repeatedly denied any association with Hamas. But dont
believe it, says recently retired FBI special agent John
Vincent, who has worked Hamas cases in Chicago, where
IAP is based (In Obamunism land!)John Vincent argues
that CAIR has managed to hide its true agenda of supporting
militant Islam under the cover of civil-rights advocacy
Though ETHNIC-PALESTINIAN, AHMAD and AWAD were born
and raised in Dahdulis Jordan, site of their refugee camp.
CAIR insists it receives no foreign support, but land and
financial documents I have uncovered reveal otherwise.
From its new national headquarters, CAIRS more than twodozen fulltime staffers assist chapters operating in more
than twenty major cities across the country, from New York
to Los Angeles and from Dallas to Chicago. They field

complaints from Muslims who feel they have been wronged

in the workplace. We have an incredible record of success
in defending Muslim rights in the workplace, Hooper says.
But they also act as watchdogs against negative portrayals
of Islam in advertising, media, and Hollywood.
CAIR is actually the outgrowth of a suspected Hamas front
called: THE ISLAMIC ASSOCIATION FOR PALESTINE, which
publishes Hamas communiqus, distributes Hamas
recruitment videos, and hosts conferences raising money for
the Palestinian terrorist group, investigators say.
AHMAD
AWAD
WERE THE TOP TWO CAIR OFFICIALS IN THE EARLY 1990s.
The Islamic Association For Palestine was FOUNDED by
Hamas political leader MOUSA ABU MARZOOK, an officially
designated terrorist and fugitive from justice.
CAIR is now under investigation by Congress, in addition to
federal agencies. The Senate Finance Committee, for one,
is indirectly investigating the group as part of an audit of
twenty-five tax-exempt Muslim Charities and foundations in
the U.S. that allegedly finance terrorism and perpetuate
violence, according to Republican Senator Charles
Grassley, the committees chairman. CAIRS forerunner, the
IAP, is on the audit list.

The goal of the audit is to document the extent of crossfertilization among groups within Americas terror-support
network. Committee investigators say privately that they
want to know if it involves so-called legitimate Muslim
political groups such as CAIR. They have obtained copies of
the charities donor lists, which the IRS keeps confidential,
to see if they are receiving donations from foreign sources
in the Middle East, such as Saudi Arabia, or suspect
domestic sources such as CAIR, a 501 (4) lobbying group.
Investigators also want to take a closer look at where their
money is going.So far, the donor lists reveal that most of
the Islamic charities share common donors tied to Saudi
Arabia and terrorist fundraising fronts, a committee
investigator tells me. They all appear to be connected, and
not just through interlocking boards of directors, he
says.Also on the Senates audit list is the Holy Land
Foundation, another close ally of CAIR. Last year, the
Dallas-based charitys founders and leaders were charged
with funneling millions of dollars to Hamas. Those jailed
included CAIR board member Elashi, who headed the Hamas
front
Federal tax records who CAIR has donated money to the
illegal Muslim charity. For example, CAIRS regional office in
northern California sent five hundred dollars to the Holy
Land Foundations post-office box in Richardson, Texas, in
1999. Signing off on the transaction was none other than
AHMAD, the chairman of CAIR. He is listed as a director of
that regional chapter, which is based in Santa Clara,

California, where he lives and worships at a mosque that has

held numerous fundraisers for the Holy Land Foundation.
AHMAD, in fact, is a long-time member and leader of the
large Wahhabi mosque, called the Muslim Community
Association, or, MCA, which last decade also raised money
for a special invited guest
DR. AYMAN AL-ZAWAHIRI, the second in command to Osama
bin Laden.
There is evidence that Ahmad has had a personal hand in
raising funds for Palestinians in their intifada, or anti-Israel
uprising. A week before the 9/11 attacks, for instance,
Ahmad urged Muslims gathered at the Islamic Society of
North Americas convention in Illinois to start supporting
two orphaned Palestinian children of martyrs instead of one
to counteract what he called U.S. supported Israeli brutality.
Investigators say contributors to the Holy Land Foundation
who personally knew the charitys leaders more than likely
also knew their money would end up aiding Hamas.The
Santa Clara-based chapter of CAIR has also given funds to
Muslims in CHECHNYA, tax records show, a hotbed of alQaeda affiliated terrorism. Chechen terrorists last year
slaughtered hundreds of children at a school in Russia.
CAIR has even employed officials convicted of terrorism in
its own ranks.
ARAB BENEFACTORS

The original deed to the property for CAIRs headquarters

located a few blocks from the U.S. Capitol at 453 New
Jersey Avenue, S.E.is kept at the District of Columbia
Recorder of Deeds Building. You can access it by computer.
In acquiring its headquarters, CAIR first entered into a
lease-to-purchase agreement with the UNITED BANK OF
KUWAIT, the same bank used by the Kuwaiti Embassy. The
bank owned the property and essentially leased it to CAIR.
The unconventional five-year dealrecorded as a
Memorandum of Lease and Agreement to Purchasewas
signed by AWAD, the executive Director of CAIR, on June 24,
1999. The deed remained with the Bank of Kuwait.
Yet oddly, CAIR listed the property as a real estate asset
valued at more than $2.6 million on a balance sheet filed
with the IRS that year, its tax records show. Odder still, it
reported a loan of more than $2.1 million from the Bank of
Kuwait for a building purchase.
At the same time, however, CAIR entered into a Deed of
Trust contract with the:

AL-MAKTOUM FOUNDATION OF THE UNITED ARAB

EMIRATES
Which put up the $978,000 for the property and now holds
the rights to sell it, manage it, and collect rents from other
tenants in the multistory building on the property. The

document was signed by CAIR chairman AHMAD on

September 12, 2002.
The Al-Maktoum Foundation is based in the United Arab
Emirates capital of Dubai and is headed by Gen. Sheikh
Mohammed Bin Rashid Al-Maktoum, the DUBAI CROWN
PRINCE and UAE defense minister. So essentially, the UAE
government is CAIRS new benefactor.
As one of only three countries in the world to formally
recognize the Taliban, the UAE ahs an al-Qaeda and 9/11
connection. Money for the 9/11 plot was funneled through
UAE banks, and two of the 9/11 hijackers were Emiratis.
After the attacks, Crown Prince Al-Maktoum was forced to
address reports of al-Qaeda money-laundering activities in
his country, as well as a rumor that Osama bin Laden had
been treated for kidney ailments at a Dubai hospital.
An in a surprisingly unsympathetic statement made just two
weeks after the attacks, Al-Maktoum warned Washington
not to strike Afghanistan and kill innocent Muslims. He
also advised against confusing legitimate acts of
resistance against Zionist oppression with acts of
terrorism, arguing that the only real terrorists are Israeli
terrorists and that Israelis should be included in any
American war on terrorism.
Al-MAKTOUMs foundation, which builds hard-line mosques
and schools in other countries, has also held Dubai
telethons to support the families of Palestinian suicide

bombers as part of a relief campaign called We are all

Palestinians.

BREAK
FLEECED
1. NASDAQ Senator Charles Schumer of New York
articulated his concern about Dubais purchase of a 20
percent stake in Nasdaq: While I am and have been a
big proponent of foreign investment in the United
States, we must still be careful of the kinds of
investments made in our critical infrastructure,
financial exchanges, utilities and other areas that are
vital to the operation and security of our country. Hes
RIGHT about that! Dubai has some prominent
advocates in the United States. Former president Bill
Clinton is a partner with SHEIK MOHAMMED BIN
RASHID AL-MAKTOUM, the emire of Dubai, and the
investor Ron Burkle of the Yucaipa Copmanies in a
global investment fund. As the spouse of a U.S. Senator
and presidential candidate, should Clinton be in
business with a foreign leader? Regardless of how the
Clintons characterize the arrangement, it appears that
Clinton is a partner in a sovereign wealth funda fund
holding a foreign states moneyWhen Mrs. Clinton

finally released her tax returns in April 2008, they

showed that the former president was paid more than
$15 million for his consulting with Yucaipa. The
Clintons didnt disclose how much came from this highly
unorthodox arrangement with the ruler of Dubai. Nor
did they say what Bill Clinton did for the millions.
Shouldnt we make sure that these widespread foreign
investmentsespecially oil-rich companiescannot be
used for political purposes or endanger our national
security before we permit the massive infusion of
foreign capital into our system?
[PAGE 9]
Dubais lobbyists are among the most aggressive in the
world. The country has hired firms close to the Clintons
such as Glover Park Group, where Hillary Clintons
campaign spokesman, Howard Wolfson, is a partner. And
Burson-Martsteller, headed by Clintons recently demoted
top strategist, Mark Penn, represents both Dubai and Abu
Dhabi; its sister company, Quinn Gillespie & Associates,
and also represents Dubais interests. The Quinn of the
firm is the former Clinton White House Counsel Jack
Quinn, who successfully lobbied President Clinton to
pardon the fugitive financier Mark Rich. Its one big cozy
circle.
In 2006, Dubais deputy ruler, Sheikh Hamdan bin Rashid
al-Maktoum, was sued in a U.S. federal district court in
Miami for allegedly encouraging the enslavement of

thousands of underage boys to work as jockeys in his

native country. The sheikh responded by hiring a
prominent D.C. lobbying/law firm to convince the Justice
Department to intervene. The suit was eventually
dismissed. Nice job by the lobbyists. Too bad for the kids.
BREAK ENDS
INFILTRATON PAGE 257 CONTINUED
In 1999, the group started renovating the suite of offices it
occupies on the second floor of the existing red-brick
building near the Capitol, judging from an October 1999 lien
filed by a local construction company against the property
for unpaid services.In August 1999, the Saudi-based
Islamic Development Bank pledged $250,000 to help finance
CAIRs new offices, a grant that was announced at the time
by the Saudi Embassy. AWAD disputes any characterization
of the grant as foreign support, arguing the Islamic
Development Bank is a multinational financial institution
similar in nature to the World Bank.
Actually, the Islamic Development Bank is not much at all
like the World Bank. For starters, the IDB is based in
Jeddah, Saudi Arabia, while the World Bank is based in
Washington.
The Islamic Development Bank has distributed more than
$250 million to the families of Palestinian martyrs from
two large intifada funds it managesthe Al-Quds Fund and

the Al-Aqsa Fund, which get most of their contributions from

the Saudi kingdom.
CAIR has other Saudi-based sugar daddies as well. On a
fundraising trip to the Saudi capital of Riyadh in November
2002just one year after Hooper denied taking foreign
moneyAWAD secured the financial support of the Saudigovernment-sponsored World Assembly of Muslim Youth in a
million-dollar public-relations campaign to put pro-Islamic
material in American newspapers and libraries.On Awads
2002 fundraising trip, he also enlisted the help of:
SAUDI PRINCE ALWALEED BIN TALAL
Who donated $500,000 to CAIRs propaganda project. That
comes on top of the least $12,000 in financing CAIR has
received from the U.S. offices of the Saudi-based:

INTERNATIONAL ISLAMIC RELIEF ORGANIZATION,

one of Osama bin Ladens favorite charities. It is the subject
of an active terror-financing investigation.
So much for CAIRs assertion that it receives no foreign
support. It also claims to be Americas largets
mainstream Muslim group and boasts of its acceptance in
top political circles in Washington. Every chance it gets,
CAIR reminds the public that its executive director was
invited by the White House after 9/11 to stand next to
President Bush at his press conference at the Washington
mosque.

Then there is CAIR board member SIRAJ WAHHAJ who

prays Americas democracy will crumble, clearing the way
for an Islamic theocracyHooper himself has stated the
same desire to overturn the U.S. system of government in
favor of an Islamic state. I wouldnt want to create the
impression that I wouldnt like the government of the United
States to be Islamic sometime in the future. His boss,
Ahmad, finally, has said he want to replace the U.S.
Constitution with the Quran.Despite this ugly record, CAIR
is still widely accepted in Washington as a mainstream
American group. Even leaders in Congress have given it a
platform to legitimize militant Islam, conned as they are into
buying some of CAIRS biggest lies of all.
BREAK INFILTRATION
ENTER FLEECED [PAGES 151-162]
DICK MORRIS RESEARCH THE DUBAI-ING OF AMERICA
TIES INTO INFILTRATION RESEARCH!
An authoritarian, anti-Semitic, antiwoman, antiworker
nation is masquerading as a modern, sophisticated, cool
new destination for tourists, while using its vast petrowealth
to buy up large stakes in American companies.
WELCOME TO DUBAI!
Suddenly, Dubai is EVERYWHERE! The nation is spending
billions to buy American businesses and stakes in major U.S.
corporations. During the past few years, Dubai has been in
acquisition overdrive, investing in American companies like:

1. NASDAQ (20 percent stake)

2. DAIMLERCHRYSLER (2 percent stake)
3. ESSEX HOUSE HOTEL (Strategically placed landmark in
New York on Central Park)
4. THE KNICKERBOCKER HOTEL on Times Square
5. HELMSLEY BUILDING (astride Park Avenue)
6. BARNEYS AND LOEHMANNS clothing retailers
7. U.S. REAL ESTATE (More than a billion dollars worth)
8. MGM MIRAGE in Las Vegas. They put $5 million dollars
into MGM
9. DEFENSE BUSINESSES (Doncasters, a British company
operating plants in Connecticut and Georgia that make
precision parts used in engines for military aircraft and
tanks. Doncasters has since purchased several aircraft
related U.S. companies.
So Dubai is gobbling up American businesses in lots of
different sectors at a record speed. And part of its
American acquisition agenda is to market itself as an
attractive, modern country.
During the past few years, theres been a concerted
international PR campaign to promote Dubai as a tolerant
new mecca of Middle East moderation and amazing
economic growth. And its working.
HALLIBURTON, the largest military contractor in Iraq, is
moving its headquarters from Houston to Dubai; the
LOUVRE, the most famous museum in the world, is opening
a branch in the emirate. Tourists are flocking to Dubais
luxurious hotels and entertainment parks, which include

indoor skiing and man made islands in the shape of palm

trees.
One of the nations biggest tourist attractions is the DUBAI
WORLD CUP, a horse race that attracts more than 60,000
tourists each year. Established by THE EMIR OF DUBAI,
SHEIKH MOHAMMAD BIN RASHID AL-MAKTOUM, the cup
attracts some of the best Thoroughbred horses in the world.
This year, the sheikh provided the $21 million in prize
money.
DUBAI is one of the SEVEN princedoms of the oil-rich
UNITED ARAB EMIRATES (UAE), is anything but tolerant and
progressive. To put it bluntly: it doesnt like Jews. So dont
try to go to the Dubai World Cup if youre Jewish. It wont
let you in.
In fact, Dubai, like the rest of the UAE, is blatantly antiSemitic. It bars Israeli citizens from setting foot in the
country. People from other nations whose passport has a
stamps indicating theyve even visited Israel must notify
Dubai immigration authorities of the stamp before entering.
Now, why would the country want that information?
[REVELATION 13 IS THE ANSWER]
Dubai is also actively involved in the Arab boycott of Israel:
it bans all products made in Israel, even ones with parts
made in Israel. Make no mistake about it: this is a very
serious issue for it.

SHEIKH MOHAMMAD BIN RASHID AL-MAKTOUM

understands the value of using prominent Americans to
legitimize his country and burnish its image in the American
media. And hes gone out of his way to make friends with
prestigious Americans who can subtly endorse Dubai.
Thats why former presidents George H.W. Bush and Bill
Clinton have been the objects of Dubai largesse. Their
Dubai friends have given millions to each of their
presidential libraries. And Bill Clinton has raked in more
than $1.2 million for several speeches that hes given in
Dubai and the UAE.
Dubais PR machine went into high gear after 9/11in part to
distract attention fro the extensive use the terrorists made
of the emirate. More than half of the 9/11 hijackers traveled
to the United States via Dubai. Even more damning, the 9/11
Commission noted that $234,500 of the $300,000 wired to
the hijackers and plot leaders in America came via Dubai
banksnotably THE STANDARD CHARTERED BANK, in which
the Dubai government owns a stake. Some of the money
was used to buy the terrorists airline tickets on 9/11,
including Mohammed Attas ticket for the plane he crashed
into the World Trade Center.
BILL CLINTON, YUCAIPA, AND THE EMIR
Just four months after 9/11, Dubais newest best friend
began his public association with the country. In January
2002, Bill Clinton gave his first speech in Dubaifor the

princely sum of $300,000. (SUNSTAR THEORY #2, IN

ADDITION TO ZBREZINSKI, CLINTON IS SUSPECT #2 IN
GIVING OSAMA PLANS AND A PHONE CALL to PLAN 9/11.
To be honest BILL CLINTON WAS MY VERY FIRST SUSPECT,
IN ADDITION TO AL GORE, WHO LOST TO BUSH IN 2000 AND
2004. A LIKELY MOTIVE FOR HIRING OSAMA WHICH
WOULD EASILY FRAME THE BUSH FAMILY AND MICHAEL
MOORE DID NOT GO ALL THE WAY WITH HIS ARABIAN
EMBASSY RESEARCH TO INCLUDE HIS HERO]
Bill Clinton has been trying to legitimize the country
ever since.
Clinton was the rainmaker who introduced the emir to
his friend and employer, Ron Burkle, the owner of the
Yucaipa Companies and a major fund-raiser for Bill and
Hillary. And last year, Yucaipa, Clinton, and the emir formed
a new company for their joint ventures. Yes, thats right:
former President Bill Clinton, the husband of a sitting U.S.
Senator (now Secretary of State under Barack Hussein
Obama 2008-2012) and major presidential candidate, is
apparently one of only three investors in what can only be
described as a quasi-sovereign wealth fund. Clintons
interest is in a business funded by a country that blatantly
discriminates against women, abuses workers in violation of
international law, outlaws unions, deports strikers, and bans
Israelis and their products from ever entering the country.
As of today, there is no sign of what the Dubai-Clinton fund

has invested in. The Clintons wont disclose anything about

it!
Senator Hillary Clinton has publicly criticized sovereign
wealth fundsthe enormous funds run by foreign
governments with little or no controls.
Commenting on the foreign investments in CITIBANK---such
as the $7.5 million outlay by Abu Dhabishe told THE WALL
STREET JOURNAL that this was a source of concern and
that such foreign funds lack transparency and could be
used by foreign governments as instruments of foreign
policy. According to San Franscisco Examiner columnist
P.J. Corkery, Bill Clinton makes $10 million a year from
Yucaipa
The potential conflicts are obvious. Dubai frequently needs
favors from our federal government that may not be in the
best interests of American workers, business, or
government policies. The UAEs oil interests may be in
conflict with our energy and national security policies. And
the possibility of a disguisedand illegal---backdoor
campaign contribution is always there.
While Hillary Clinton chastises American corporations and
employers for layoffs and opposition to greater union
organizing rights, Bill pockets big buckswhich presumably
end up in his joint accounts with Hillaryto legitimize and
promote an Arab state that is anti-Semitic, antiworker,
antiunion, and antiwoman.

Even as the Clintons have been making millions from Dubai,

the average worker in the Dubai and the UAE construction
industry makes about $177 per monthnot enough to
support a family. According to the State Department, 98
percent of the workforce in the UAE is mae up of foreigners,
whom Human Rights Watch described as indentured
servants, with no right to form unions or hold strikes.
Its not just Bills $1.2 million in speaking fees from Dubai
that have enriched the Clintons. And its not just the million
dollar contribution the emir of Dubai made to the Clinton
Presidential Library or Dubais financial commitment to Bill
Clintons charitable foundation that has endeared the
Islamic monarchy to them
But Bill isnt alone in legitimizing Dubai. Other Clinton pals
including disgraced former national security adviser Sandy
Berger, former secretary of State Madeleine Albright, and Al
and Tipper Gore---have attended highly publicized events
there. Former senator George Mitchell publicly compliments
the country. And former House minotiry leader Richard
Gephardt and former congressman Thomas Downey have
registered to lobby for Dubais interest. William Cohen,
Clintons secretary of defense, organized a dinner for opinion
leaders to meet the sheikh.
On the Republican side, former Senator Bob Dole joined the
nations lobbying team, and Bush 41 chief of staff John
Sununu, the presidents brother Neal Bush, and Rudy Guiliani
have all participated in high profile conferences in Dubai!

EVERYONE LOVES DUBAI!

And as the countrys commercial presence in the United
States continues to grow, Dubai needs help in Washington
So the emirate and the UAE have hired a gaggle of lobbyists
to watch out for their various interests. The GLOVER PARK
GROUPthe house of Hillary Clinton spokesman Howard
Wolfson, former President Clinton press secretary Joe
Lockhart, and numerous Clinton White House staff, as youll
recalllobbies for numerous Dubai interests. And the
megalobbying and law firm DLA Piper, whose employees
have contributed more to Hillary Clinton than to any other
candidate, has represented the sheikh.
George Mitchell and Dick Gephardt make their homes at DLA
Piper, which represents Dubai and the sheikh. DLA Piper
likes Dubai so much, it has even opened an office there!
The lobbyists watch out for Dubai, making sure that theres
no problem with its interests. Remember when Dubai
wanted to buy a company that would control U.S. ports in a
number of major cities? Many members of Congress
including Hillary Clinton!loudly opposed the deal. Of
course, she never mentioned that her husband was working
with Dubai. Word leaked out that Bill had been advising
Dubai on how to handle the crisis, though, and he had
recommended his favorite lobbying firm, Glover Park. At
first Joe Lockhart denied that his firm had been hired by
Dubai. But then, shortly thereafter, Glover Park was
retained by a Los Angeles law firm that handles U.S. real

estate deals for Dubai. With the law firm and not Dubai
named as the client, it was harder to trace the Dubai dollars.
And the law partner in charge? Raj Tanded, the brother of
Hillary Clintons longtime policy adviser.
What a coincidence!
Now Glover Park represents Dubai-owned Doncasters and
has also represented Dubai Aerospace in the acquisition of
Landmark Aviation, as well as several companies in which
Dubai has a stake, namely Airbus and Standard Chartered.
THE GLOVER PARK GROUP
CLIENT

AMOUNT PAID

Doncasters

$200,000

Standard Chartered Bank

$400,000

Airbus

$620,000

Dubai Aerospace

$250,000

TOTAL

$1,470,000

Dubai also hired the Clintons pal Jack Quinns firm to help
out on the Landmark Aviation deal and on the Airbus
contract:

QUINN GILLESPIE & ASSOCIATES: DUBAI RELATED CLIENTS

CLIENT

AMOUNT PAID

Dubai Aerospace

$240,000

Airbus

$360,000

TOTAL

$600,000

But Dubais biggest lobbying dollars were spent trying to get

rid of an embarrassing lawsuitone that accused the emir,
his brother, the minister of interior and culture, and other
ministers of Dubai of abducting and enslaving thousands of
young boys to train as camel jockeys.
In September 2006, Sheikh Mohammed made a quick trip to
Kentucky, where he dropped $20 million in one day buying
Thoroughbreds. As he was about to board his plane, he was
served with a lawsuit filed in Miami, Florida, accusing the
emir and his family and political allies of systematically
kidnapping and abusing ten thousand young boys. The
complaint alleged that boys as young as two years old were
stolen from their parents, trafficked to foreign land and put
under the watch of brutal overseers in camel camps
throughout the region.
END OF FLEECED EXCERPTS

SHARIA LAW

Is Shariah consistent with the US Constitution?

Center for Security Policy | Oct 17, 2008

The following is a transcript of a debate sponsored by The Harbour League

on the subject, "Islam: a Religion of Peace? Is Islamic Law ("Shariah")
Consistent With A Religion Of Peace And The U.S. Constitution?" Eli Gold,
president of The Harbour League, introduced the participants. Moderating
was Mark Hyman; for the affirmative was Suhail Khan and presenting the
negative was Frank Gaffney, president of the Center for Security Policy.
The Harbour League was founded in 2005 as an organization to promote
conservative and free market dialogue on the state level. In looking at this
question, "Is Islam a Religion of Peace?" the League wanted specifically to
look at whether Islamic law, Shariah, is consistent with a religion of peace
and with the US Constitution.
To listen to the audio, click here.
MARK HYMAN: Thank you, Eli. Good evening, ladies and gentlemen and welcome to The
Harbour League's debate. Islam: A Religion of Peace. Is Islamic law consistent with a religion of
peace and the U.S. Constitution. I first wanted just to offer a couple of words before we get into
the actual debate. I was flattered when I was asked earlier this year to join the board of trustees at
the Harbour [League] and that's primarily because of the mission of the organization itself
that's to research, analyze and promote conservative public policies related to Maryland and the
nation. And it's work grounded in intellectual discussion and debate. Which is refreshing when
you consider the silliness we see in today's cable news shows, the national news networks, or in
the daily pages of the newspapers and the weekly news magazines that treat conservatism with
ridicule and derision.Tonight is an example of the type of program that the Harbour League
offers. Two gentlemen, informed, impassioned about their respective positions take center stage
tonight in front of a standing room only audience. It is a topic worthy of debate, evidenced by the
fact that we have media presence. This is why I ask of you tonight, each of you found on your
chair an application form. We certainly encourage all of you to join the Harbour League. We also

encourage all of you to make a charitable, tax-deductible contribution to the Harbour League.
Two weeks ago, we'd have gladly accepted your stock offers. [LAUGHTER] Tonight, that's all
up in the air.
This is the format for tonight's debate. Mr. Frank Gaffney, Mr. Suhail Khan will each have ten
minutes for their opening remarks. Each will have five minutes for rebuttal. Then, there will be
opportunity for Q and A. I may or may not ask any questions. But I certainly as the moderator
reserve the right to ask follow [up] questions for the audience if they ask. After the Q and A
session is done, each individual will have five minutes for closing remarks.
Now, this is the very important part for you, the audience. I will recognize people for Q and A
one at a time. And when you ask your question, the first thing I want to see is a little thought
bubble forming over your head and it will be filled with no more than two sentences and a
question mark at the end of it. No statements, no arguments, no debate, no soliloquy, simply a
question. If you fail to follow the rules, we'll pass you by and go to someone else. I also ask the
audience to refrain from applause or outbursts. Unless it's applause and outbursts of adulation for
the moderator, for that's acceptable. [LAUGHTER]
In the interest of time, I will give a brief biography for each of our speakers for this
evening. Originally from Boulder, Colorado, Suhail Khan graduated with a BA in political
science at the University of California at Berkeley in 1991. He received his JA from the
University of Iowa in 1995. He is a veteran Capitol Hill staffer and is currently serving as
assistant to the secretary for policy under US Secretary Mary Peters at the US Department of
Transportation where he was awarded the Secretary's Team Award for 2005 and the Secretary's
Gold Medal for Outstanding Achievement in 2007. He served on the Board of the American
Conservative Union, Indian-American Republican Council, and the Islamic Free Market
Institute.
Frank Gaffney is the founder and president of the Center for Security Policy in Washington, D.C.
He holds a Master of Arts degree in international studies from the Johns Hopkins School of
Advanced International Studies. And he has a bachelor of science in foreign service from the
Georgetown University School of Foreign Service. From August of 1983 until November 1987,
Mr. Gaffney was the Deputy Assistant Secretary of Defense for Nuclear Forces and Arms
Control Policy under Assistant Secretary Rich Pearl. He is the lead author of the book War
Footing: Ten Steps America Must Take To Prevail In The War For The Free World.
And now for our debate. Islam: A Religion of Peace? Mr. Suhail Khan, will start with the
affirmative.
SUHAIL KHAN: Thank you, Mark, for the introduction and I want to say I'm very grateful to all
of you at the Harbour League and to my friend, Eli Gold, for the opportunity to speak to you this
evening.
My name is Suhail Khan. I'm a Reagan conservative, a Muslim, and I'm an American. I believe
that every American has a right to live their life as they see fit. Free from government
interference or dictators. I believe the government should not discriminate against anyone
because of their color of their skin, because of their ethnic heritage, or their faith or their
religious beliefs. Last May, Eli kindly invited me to attend an event featuring Herb London. And
while the evening's topic was America's Secular Challenge, regrettably, Mr. London attacked
Islam and Muslims using the very argument the secular left uses to attack religion in general.
After the lecture, Eli suggested I give a talk about Islam and Muslims and we both agreed a
debate would generate the most interest and open discussion. But I was disappointed that so

many were unwilling to participate in our honest debate. A local radio show host who rants for
hours on how Islam is evil backed out on participating in a discussion, admitting he didn't know
enough about the subject. He knew enough to hate, but not enough to learn. Funny enough, he
offered to moderate the discussion. Robert Spencer, who has written hate-filled screed after
screed on Islam and Muslims, after initially agreeing to debate, soon backed out.
When I spoke at the Council for National Policy last year, a woman asked me whether my
religious beliefs and practice was consistent with our Constitution. Her question was sad. The
first amendment is quite clear, that all Americans are free to worship as they wish. No one is
disqualified from citizenship or high office because they are Catholics, Jews, Muslims, or
Mormons. During the great immigrant waves of 1900, a rabbi once said of our melting pot, all
names are American names. How wonderfully true. So, too, are all faiths. All are American
faiths. Every faith in the world is found in our nation. All are protected by the constitution.
Bigotry is un-American. Racism is un-American. America is made up of men and women of all
faiths. Women have lived in America--Muslims have lived in America before we were America.
More than one in ten African slaves brought to the colonies were Muslim. Alex Haley's Roots
tells the story of Kunta Kinte, a Muslim slave brought to Maryland in 1767. Morocco, a Muslim
nation, was the first country in the world to recognize American independence from Britain.
Muslim doctors, scientists, businessmen and farmers have immigrated to the United States over
the past two hundred years. Many like me have been blessed to have been born here.
The founding fathers excluded religious texts from the constitution, knowing fully that one day,
Catholics, Jews, Muslims, and even atheists could conceivably secure a good office. Indeed,
when the first Muslim was elected to Congress last November, Keith Ellison of Minnesota,
a descendant of slaves, he swore his Oath of Office on a copy of the Koran, the Muslim scripture
that belonged to Thomas Jefferson. Today, more than six million Muslim-Americans are proud to
live, work and serve our country. And like their fellow Americans, they serve in uniform. Both in
the armed forces and as first responders. Arab and Muslim-Americans have served their country
in every war since the American Revolution. And over six thousand serve today and have done
so with honor. In the audience, I want to recognize company first sergeant Jamal Bidahi
[SPELLED PHONETICALLY] who has served over twenty years in the US Marines and has
done so with distinction, defending our country in missions from Beirut in 1983 through
Enduring Freedom.
American-Muslims share much in common with their fellow Americans of the Jewish and
Christian faith, people who are honored as people of the book in the Koran, having received
divine revelation, including the Torah, the Psalms, the Gospel and answering all to the same God,
the God of Abraham. The late Pope John Paul the Second and Pope Benedict have reached out to
the Muslim world to condemn religious bigotry. So have the National Association of
Evangelicals. Over the years, I've had the opportunity to work with Catholics and Evangelical
Protestants, Orthodox Jews and others on issues of shared concern, including free religious
expression, education, and national security.
Is Islam a religion of peace? For the vast majority of the faithful in the Muslim mainstream,
living their lives, raising their families, going to work, serving the uniform, starting small
businesses, paying their taxes, playing by the rules, the answer is a resounding yes. In recent
years, and especially since the horrifying events of 9-11, racists have falsely claimed that my
faith commands its followers to violence. Some, like Spencer, have taken [UNCLEAR] and outof-context quotations from the Koran to suggest that Islam sanctions violence or terrorism.
Certainly Bin-Laden has tried to make the same claim.

The good news is that there are over a billion Muslims and a relatively small number of
extremists. In my faith, as in the Jewish tradition, the taking of even one innocent life is akin to
the murder of all humanity. Suicide, as in Christianity, is strictly forbidden. Some Americans
believe that the Muslims did not condemn the terrorism of 9/11. In fact, there were many strong
condemnations. But you won't find them on the websites that promote hate against Muslims.
That would muddle their message. I have passed out a compilation of a series of denunciations of
terrorism by Muslims.
Sadly, demonizing Muslim-Americans is a threat to our national security and indeed our
American way of life. Some have questioned the loyalty of Muslim-Americans. Some have
called for the barring of all Muslim-Americans from public service. And others have even
proposed that we criminalize the practice of Islam with twenty years in prison.
This has affected me in a very personal way. For some years now, these racists have tried to
invade, to publish outright lies and falsehoods about me, my family, and other MuslimAmericans serving in our country. Not [UNCLEAR] attacked my father's memory, for example,
had the decency to even try and call me and get the facts straight. They wanted their hate. Not the
truth. While honest journalists have dismissed this smear campaign, some have been fooled into
publishing these lies. And in most instances have published retractions or simply removed the
falsehoods outright from their webpages.
But we've seen this before. The same things that are being said about Muslims were said about
Catholics. About people of the Jewish faith. And about Mormons. Anti-Catholic sentiment
became so bad in the 1840s and 50s that the Davidist movement of the time whipped antiCatholic mobs to violence. The burning of Catholic businesses and the killing of Catholics. As
recently as even 1950, Paul Branchard wrote American Freedom and Catholic Power, a book
where he ominously warns of a Catholic plan to take over America and the world. The oldest
hatred, of course anti-Semitism has been present since the Roman Empire and we've seen antiSemitism, as well.
And now the haters are attacking Muslims and Islam. Like those who warned against a nefarious
plot by Papists to control American schools, banks and the government, the haters ominously
warn us of the dangers of Shariah law. Or a cultural jihad where, God forbid, if you let Muslim
TSA employees wear skirts, the next thing you know, we'll be stoning adulterers. I've handed out
a column where Robert Spencer says exactly that. I guess we must protect the constitution from
women wearing pantsuits.
I think it's good that America accommodates all faiths. Yesterday's bigots objected to a New York
school giving students Jewish holidays off. Today's bigots object to Muslims working with
employers to trade holidays to take Muslim holidays off. You can only imagine what the haters
think of Congress taking two days off last week for Rosh Hashanah.
The newest target of hate is Islamic finance. Islam, like Catholicism, objects to usury or interest
on loans. Europe and the U.S. have allowed Muslims to enter voluntary agreements where they
pay the same taxes as everyone else, no special favors, the taxes are the same, but the haters don't
like it because Muslims do it. The guy leading the charge is David Yerushalmi a guy who hates
Muslims, blacks, women, Asians and liberal Jews. Objecting to Islamic finance has nothing to do
with terrorism or anything, but it has everything to do with hate.
And in their zeal to attack Muslims, some of them attack others. Spencer, for example, has said
that Muhammad was betrothed to a girl when she was nine. Eli points out that Isaac was
betrothed to Rebecca when she was three. Spencer's bigotry easily morphs into anti-Semitism.
Spencer has written in celebration of the Crusades. [During] the first Crusade, you will recall, the

Jews of Europe and the Middle East were murdered by the thousands. The fourth Crusade, the
followers of the Greek Orthodox faith were killed along with the Muslims. Cal Thomas, in a
recent column, asked how can the president say that we all worship the same god when Muslims
deny the divinity of Jesus? In seeking to divide Muslims and Christians, Thomas attacks Jews as
worshipping a different god.
MARK HYMAN: One minute.
SUHAIL KHAN: And after claiming we should invade their countries, kill their leaders and
convert them to Christianity when referring to Muslims, Ann Coulter declared Jews need to be
perfected by becoming Christians. Anti-Muslim bigotry is simply anti-Semitism on training
wheels and we've seen this time and time again. And it should be no surprise that after a flood of
books criticizing Islam, we now see a flood of books criticizing religion in general. Christopher
Hitchens when asked, after 9-11, whether Islam was the enemy, said yes. And Judaism and
Christianity are the others. And this anti-Muslim rhetoric leads to real violence. Time and time
again, in California, in Texas, in Dallas, Muslims or people perceived to be Muslims have been
attacked and many times because of some of the anti-Muslim rhetoric they've read in newspapers
and columns. Such bigotry and this is bigotry, plain and simply is giving in to our terrorists,
demonstrating to our enemies that we are willing to respond to their hate with hate of our own
and giving in to the fear, succumbing, and succumbing into prejudice.
We should be thankful that our president has stood against this and may take to heart the words
of President George Washington when he wrote in the 1790s to a Jewish congregation, that
Americans would give to bigotry no sanction, to persecution, no assistance.
MARK HYMAN: Thank you, Suhail. [APPLAUSE] And the negative, Mr. Gaffney.
FRANK GAFFNEY: Good evening. Well, that certainly set the predicate for tonight's
conversation. I was one of those who jumped at the chance to debate Suhail, so I hope I will do
an adequate stand-in for those who were unable to make it. I come at [this topic], I'll be frank
with you, from a national security perspective. I'm not a Koranic scholar. I doubt there are any
Koranic scholars in this room. But I'm not one.
But I am one who I think has studied the subject enough to be able to identify a very significant
nexus between the texts, the traditions, the practices of authoritative Islam and our national
security interests and, yes, the constitution of the United States. The nexus comes about in the
form of something Suhail touched on. A program that's theo-political-legal in character, that the
authorities the recognized authorities in Islam call Shariah.
I am here to discuss the implications of Shariah for both our security and our Constitution which
[as Slide 2 shows] makes very clear that it is the supreme law of the land in the United States. It
does not countenance having other laws that supplant it or displace it, to say nothing of [any] that
would have the effect of its violent overthrow.
The origins of Shariah are to be found in the Koran which Muslims regard as the word of God, or
Allah although much of it is, in fact, the product of scholars and caliphs who generated it
hundreds of years after Muhammad's death.
Of particular importance to this debate is a principle found in the Koran and embedded in
Shariah law. The principle called "abrogation." [Slide 3] According to the recognized Islamic
authorities, Allah made plain in the verse of the Koran known as Sura 2:106, the earlier passages

of his revelations to Mohammed would be replaced by "something better." Hence, the

chronology of the Koran is all-important.
[Slide 4] This is a generally accepted breakout of the chronology of the Koran. There are four
periods represented by these columns early Meccan, middle Meccan, late Meccan and Medina.
These periods, broadly speaking, are captured in the experience of Mohammed in Mecca for the
first three and in Medina for the last. And it's interesting that in almost every case the texts that
are referred to Suhail mentioned some of them, at least in passing that are peaceable, that are
tolerant, that refer favorably to People of the
Book, fall into the three periods of the early part, the Meccan part.
But the problem is, according to the principle of abrogation, what counts is what came after.
Namely, the Medina period. And by and large, the texts from the Medina period are not tolerant,
are not peaceable and are not favorable or accommodating [to others], certainly to People of the
Book.
Specifically, I'd like for the purposes of this brief overview to talk a little bit about the last two
according to this generally accepted chronological breakout. [Sura] 9 and 5. Number 9 talks
about something called "jihad." [Slide 5] Note that [Sura] 3 talks about whoever seeks a religion
other than Islam will never have it accepted of him which results in [Sura] nine, it's a directive
which says "fight and slay unbelievers wherever ye find them and lie in wait for them in every
stratagem of war." And "fight those who believe not in Allah nor the last day be that if they are
People of the Book." That's the last word of the Koran on the subject of jihad.
[What] about interfaith relations? This speaks to is there compulsion [in religion.] According to
[Sura] 2 at the beginning of the Medina period, "Let there be no compulsion in religion." Sounds
okay. [Slide 6] [But Sura 5 says] "But whoever seeks a religion other than Islam, will never have
it accepted of him." "Take not the Jews and Christians for your friends and protectors. They are
but friends and protectors to each other and he amongst you that turns to them for friendship is of
them." "Verily, Allah guideth not the unjust."
[That is] the last word on interfaith relations. So as these slides make clear, the earlier passages
that are often cited as evidence of Islam being a religion of peace and tolerant of other faiths, in
particular those of People of the Book, [namely,] Christians and Jews, have in both cases been
abrogated in favor of what are believed to be divine directives to use violent means where
necessary to assure the triumph of Islam over other faiths and, indeed, the world.
This is not selected quotation of passages of the book. This is according to Shariah. According to
the adherents to Shariah, according to the recognized authorities of Islam, all of them. All four
schools of Sunni Islam and the one or two, depending on who's counting, of Shia Islam, all of
them, agree on the principle of abrogation and its definitive, final words having been "something
better" than the more peaceable stuff that was said [by Allah] under very different circumstances
to Mohammed back in Mecca.
Those schools all agree on the following points:
One, that it is God's will that Islam will rule the world.
Second, that jihad is an obligation of all Muslims, whose purpose is to achieve the global
governance of a caliph (or ayatollah in the cases of the Shia) pursuant to Shariah. Those who
don't adhere to Shariah, to the Muslim community, are apostates. A crime punishable by death.
[Third,] where possible, jihad is to be pursued with terror-inducing violence. Where it is not
practical, "soft" or "stealth" jihad is to be employed, backed where possible by the threat of
violence or, in fact, the use of it elsewhere.

MARK HYMAN: One minute, please.

FRANK GAFFNEY: I'm not going to get through all of this. But let me conclude with a key
piece.
In 1928, an Egyptian by the name of Hussan al-Banna created an organization called the Muslim
Brotherhood for the purpose of promoting on an international basis soft or stealthy jihad until
such time as the conditions were ripe for violence.
His purpose was memorialized in a 1991 memorandum introduced into evidence by the U.S.
government in the Holy Land Foundation trial. It's entitled "An Explanatory Memorandum on
the General Strategic Goal for the Group the Brotherhood in North America." It was written
by a senior operative of the group. The essence of it is in this quote. "The Muslim Brotherhood
must understand that their work in America is a kind of grand jihad in eliminating and destroying
Western Civilization from within. And sabotaging its miserable house by their hands and the
hands of the believers so that it is eliminated and Allah's religion is made victorious over all
other religions."
MARK HYMAN: Time, please.
FRANK GAFFNEY: Interestingly enough, this memorandum identifies virtually every one of
the prominent Muslim-American organizations in America as Muslim Brotherhood front
organizations or friendly organizations. It is an enemy within, a Fifth Column, that is promoting
an explicitly jihadist program aimed at the destruction, the seditious destruction, of the
Constitution of the United States and its replacement by Islamic rule that we are up against,
ladies and gentlemen, and we best be alive to that danger. Thank you.
MARK HYMAN: And this will be the five minute rebuttal.
SUHAIL KHAN: Thanks, Mark. I'll say a few things in response. First of all, you know, I
thought it was telling that Frank admitted that he's not an expert on Islam or Shariah and yet he
proceeded to tell me what Islam and Shariah are all about. It was interesting, first I'll say that the
important thing about the theory of abrogation is that only Frank and the anti-Muslim crowd
seems to believe in. There are scholars in the United States that do know about Islam and the
Muslim faith but don't in any way subscribe to the teaching that Frank has, uh, has proposed here
this evening. The only people I know that, that believe in that are the terrorists. And Frank
Gaffney and his cohorts.
Anybody can go to any of the holy books and as a friend of mine said, each religion has its
issues, and pick out selectively different verses and try to make them sound horrible. In
Numbers, for example, we read in, in Verse 31, "Behold, these call the sons of Israel through the
counsel of [UNCLEAR] to trespass against the Lord to the matter of [UNCLEAR] the plague
was among the congregation. Now, therefore, kill every male among the little ones and kill every
woman who has known man intimately. But all the girls who have not known men intimately,
spare them. Spare it for yourselves." And again, in Joshua, we read, in Verse 21, "They utterly
destroyed everything in the city, both man and woman, young and old, and ox and sheep and
donkey with the edge of a sword." And of course, the Bible, the Old Testament is replete with
verses that, in some cases explicitly, are very violent and some would say exhort the followers of
either faith to violence.
The verses that Frank points out in the Koran, first of all, as he noted by his own chart, were
during a time of war, and the Prophet, peace be upon him, was commanding his followers, in a

time of war for those that were making war on Muslims to defend themselves. That was very
specific to a specific timeframe. It was not that all Muslims should kill all Christians and Jews or
all pagans or whatever religion there might be.
If that were the case, when India was ruled by Muslim rulers for centuries, then you would have
had all the Hindus and all the Christians there killed, which they weren't. India, still to this day
remains, a predominately Hindu country and the Muslims are in the minority. So either they
weren't going to Sunday school or that is not the case when it comes to Islam and its treatment of
other Muslims.
Now, are there some extremists who believe that theory? Yes, and we need to defeat them. We
need to stop them. But generally speaking, the vast number of mainstream Muslims do not
subscribe to any type of belief like that. Because when they read the Koran, like I do, you read
the entire context and you know those verses were specific to a time of war.
Secondly, when it comes to Shariah, Frank called it a black box, which somehow some
mysterious scholars out there who are trying to define Islam for everybody else and [make]
people, whether they're Muslim or otherwise, follow it blindly. That's not the case. Shariah
means "the way" in Arabic. And it's an interpretive law that governs the protection of religion,
life and property for Muslims. And it's specific to Muslims. There is no strict static set of laws in
Shariah. Sharia is a system of law that is interpretive. And my friends in the Jewish community
will appreciate this because, much as in the Jewish faith, you have an interpretive law, there's the
old saying, that when you have two rabbis, you have three scholars, you have three opinions.
Well, the same thing goes for imams.
For example, Islamic finance. The experts on Shariah who do know about Islam and Shariah got
together in the United States and said Muslims can buy their homes with interest, no problem,
because you need, you need to buy a home to live in. You need something, you need to put a roof
over your heads for your family, and the American society is based on interest and so it's,
therefore, we have no problem with that. Interpretive law. Not the draconian type of law part,
that interpretation of law that Frank wants to make it out to be. Now are there people in
Afghanistan who do that? Absolutely, and we need to stop them. But that, I would argue, is the
minority. The vast majority of the world's billion Muslims who live peaceably, live peaceably
with their neighbors, whether Jewish, Christian, Buddhist, Hindu, do not subscribe to these
violent precepts or beliefs.
MARK HYMAN: One minute, please.
SUHAIL KHAN: The last thing I want to say in closing out on this issue is going to terminology.
Terminology is so important. And you heard Frank use terms like the Islamic terrorists or the
jihadists, etc. These terms are very nefarious and they conflate religion with a political
movement. And the [UNCLEAR] we, we certainly know that Bin-Laden and other types of
terrorists are trying to do that. But they want to take Islam. They want Islam to be theirs. They
want to have these medieval, narrow interpretations of Islam. And the only people who believe it
are not the Muslims. The Gallup organization did a poll of over a thousand Muslims around the
world and when they came to terrorism, the vast majority of people who actually supported
terrorism did so for political reasons. Those who opposed it did so for religious reasons.
The [Muslim] people who know their religion are against terrorism. And terms like jihadist or
Islamist only validate the actions of the terrorists. And they do not in any way describe the
religion. And that's why the President and Homeland Security Secretary Michael Chertoff and
people in the military stand against using terms like Islamist or jihadist because they don't want
to validate the enemy like bin Laden wants us to do. So that's why we call terrorists, terrorists

or murderers because that's exactly what they are. I don't want to give one inch of my religion to
people that murder in the name of faith. And no one else should. Thank you.
FRANK GAFFNEY: I'm actually going to finish my [opening] remarks and then I'll rebut in the
Q and A and closing comments.
The focus of the soft jihad being perpetrated by the Muslim Brotherhood has three
purposes. [The first] is to dominate the Muslim population. Particularly in societies like America
where, as Suhail says, most Muslims do not want to live under Shariah, do not want to have to
live under the repressive, brutal regime that's imposed upon Muslims in places like Saudi Arabia
and Iran. And the Sudan. And in the Taliban's Afghanistan.
The strategy is to segregate the Muslims; to promote a sense of victimhood -- this idea, as Suhail
said, that there are many of them [in America] that are being attacked [is] a laughable
proposition; radicalize them; and recruit them to jihad. [It's] a classic totalitarian strategy [that] is
being promulgated in; mosques; prisons; the military; schools and campuses; unions [Suhail]
mentioned switching out Labor Day for Eid in Shelbyville, Tennessee, a hotbed of Muslim
activism; our government; and most recently what's left of Wall Street. There are serious
questions about Shariah-compliant finance, because I believe this is very much part of the stealth
jihad [the Islamists] wage against our country.
A second focus is intimidating opponents. We've heard much about bigotry and racism. There's
not been a single rebuttal [tonight] of the scholarly work that Robert Spencer has done. There
hasn't even been a rebuttal of what I've just said. Except to suggest that [Suhail] knows more
about his religion than somebody who is serious about it and has worked hard to understand it
using the recognized authorities and their texts. Which [Suhail] has not done. Because if he had,
he would be laughed out of your average mosque even the non-Wahhabi ones when he
purports to say nobody believes in this abrogation principle. That's simply preposterous. Simply
preposterous.
And I would ask anyone, our friends in al-Jazeera most especially, who is interested in getting to
the bottom of this, to check out the Reliance of the Traveler, for example. One of the most
authoritative, if not the most authoritative reference work on the Muslim faith. There's no
question about my being correct on this and him being wrong.
Thirdly, the idea, the objective here of these Brotherhood types in America and in other Western
societies is to create parallel societies. [Their] society, for example, that would have its own set
of laws, [namely,] Sharia. Notwithstanding the Constitution of the United States.
Notwithstanding [the] solemn requirement [in] Article 6 that it [is] the supreme, the only law of
the land.
This is done through establishing preferential arrangements for Muslims in the name of religious
accommodations: a [separate] legal code [and] courts, territorial no-go zones and political
benefits. None of which in the beginning seem terribly dramatic. [For example,] we've got a
Muslim dress code pantsuits for TSA. Who could object to that? Except that it's about Shariah,
folks. It's about insinuating Shariah by creating separate arrangements, which then are extended
inexorably as their beachheads grow further and further.
This is, in short, utterly at odds, with the Constitution of the United States, its precepts,
freedoms, and institutions. The good news is that most Muslims, at least here, still don't want to
go there. But they are being inexorably encouraged, and in some cases intimidated, into
following the line of the Brotherhood. And to the extent that we have government officials who
have taken a solemn oath to uphold and defend the Constitution of the United States, some of
whom are Muslims, I submit they have a special responsibility to reject Shariah and the Muslim

Brotherhood organizations [that are] stealthily trying to impose it on all of us. To do otherwise, to
fail, to act in the face of seditious behavior
MARK HYMAN: One minute.
FRANK GAFFNEY: which is a felony offense under the US Constitution and code. It is a felony
offense known as "misprision of treason."
We need the help of all patriotic, law-abiding, tolerant Americans who are Muslims in fighting
our mutual enemy, Shariah-adherent Islamists in this country and elsewhere. A key test of which
camp they are in is whether they acknowledge the true nature of authoritative Islam Shariah and
the threat it represents to our country and Constitution and work against, not with, the groups
seeking to impose it, this seditious agenda, on us and undoing our Constitution. Thank you.
[APPLAUSE]
MARK HYMAN: Thank you, Mr. Khan and Mr. Gaffney. One hour from now, I only hope that
Barack Obama and John McCain have the same passion that these two have shown tonight.
Anybody who watched that debate ten days ago, what a sleeper. So hopefully you guys can inject
some passion into the folks in the Belmont University tonight.
SUHAIL KHAN: I'll try.
MARK HYMAN: All right, first of all, by a show of hands, who anticipates or would like to ask
a question? See that makes my job easy. Cause I have a whole list of questions I don't need to go
to. So
why don't I go ahead and start off if you raise your hands and remember my rules I want to see
a thought bubble over your heads with no more than two sentences and question mark at the end
or else we're going to move on. So I'll start off up front.
WOMAN: Okay. Do you want me to come up there, Mark, or-MARK HYMAN: Or just, you can stand up, we can, just speak loud.
WOMAN: I have a, a question for Frank. Talking about numbers. And I'm bad at math, too.
Could you help me out here?
FRANK GAFFNEY: [UNCLEAR]
WOMAN: That's exactly right. So if there are roughly four to six million Muslims in our
country, arguably, let's just pretend that's a good number and twenty-five percent of those are
African-America, roughly thirty percent are Asians, so you end up with about twenty-five
percent Arab in our, in Muslims. Most of them go to mosques. So we're talking about eight
hundred thousand people. If they're all, you mentioned the [Muslim] Brotherhood, the other
organizations, where are these guys? I mean, how come we've not been blown up here? How
come we haven't had, if there are that many of them and they're that angry and they're that antiAmerican, where are they all?
And, and my other question is, you did a study on, you looked at a hundred mosques out of the
two thousand, which is roughly five percent. Extrapolated that three quarters of the people were
what you would term as Islamists. How do you get to that number? I mean, did you go into the
mosque and ask them? I mean, how do you come up with this number of this many people that
you claim have this attitude? So number one, you know, where are they and why aren't they
doing anything? And number two, how could you, how does anybody possibly know what's in

their heads and how did you get that information for your report?
FRANK GAFFNEY: Thank you. Good questions both. Could everybody hear them?
MARK HYMAN: Cause we're not repeating that question. [LAUGHTER]
FRANK GAFFNEY: If I'm right, and first of all, that's ridiculous that there's six million Muslims
in America. I don't believe that for a moment. I think it's, by the census, probably [closer to] 2
million. So your numbers shrink even further from what you suggested. The problem is, those of
us who live in this corridor of the United States may remember what two guys with a sniper rifle
and a weird car did to millions of Americans.
If you want to do harm here, if you want to blow things up, we are the most open, the most
vulnerable society in the world. So your question is a good one. Why haven't more things been
blown up since 9/11?
Well, in fact, there have been a number of efforts to do that. Fortunately, the government has,
using powers that were generally resisted by the Muslim Brotherhood front organizations, been
able to stop them. I suggest something else is at work here, though. Robert Spencer, who has
been mentioned here several times by Suhail in a very defamatory way and by me in a
complimentary way, has a new book coming out shortly called Stealth Jihad, which I hope
everyone will read. Whether you're on Suhail's side or on my side, it's a very important insight
into why the Brotherhood [believes] that they can, for the moment, make more progress using
stealthy techniques, soft jihad techniques, than they can by blowing things up. They blow things
up here, we tend to blow things up over there. That's netted out not-positive for a lot of these bad
guys. So that's my answer to the first question.
On the mosques, the report that you refer to has not been fully and finally released. It's still a
work in progress. There have been about two hundred of these mosques that have had on-site
inspections done. The advantage of using the methodology that's been used is, if you're looking
for Shariah adherence, it's very evident. People dress in a certain way, people carry themselves
with their beards and their jewelry, and their clothes in a certain way. They follow, in other
words, what is a very strict regimen though Suhail doesn't seem to be familiar with it a very
strict regimen that is being [followed] in approximately seventy-five percent of the mosques in
the United States, based on this sample. More are being investigated every day. We hope to have
an even more full sample set. But let's just say that it's off by a factor of two. It's only thirty-five
percent of the mosques in America that are practicing a virulent form of Shariah and seem to
have a pretty high correlation as Shariah dictates of support for jihad. That's a problem all by
itself. And it [gets back] ultimately to the [first] part of your question which is, at some point, the
stealth jihad gets sufficiently far advanced that violence is accepted as workable again. And that's
what we need to prevent from happening.
MARK HYMAN: Can you stand up please?
WOMAN: Okay. You were saying that we shouldn't use the words like jihad, too different, I'm
not a, I'm not an Islamic scholar and, no offense, but I'm not really particularly interested in the
proper interpretation of Islam or any other religion, to tell you the truth. I really, you know, the 911 survivors that [UNCLEAR] blowing things up--

SUHAIL KHAN: Absolutely.

WOMAN: And all that kind of thing, but I wanted to know if you're saying Islam is [never] a
religion of peace, because I'm not going to doubt that. But if you're saying that it [always] is, it
seems to me that the terrorists who are claiming to use your faith to support their acts even if
they're doing it wrongly the people who are using the words are just doing it to acknowledge
that this is happening and it sounds like you're suggesting that we not use any words, saying like
"Islamic terrorism" and then we see no connection. We see no connection
MARK HYMAN: And your question
WOMAN: like it's all random.
MARK HYMAN: Your question is?
WOMAN: Can you acknowledge a) that it sometimes is not a religion of peace and b) when
people [UNCLEAR] use it for violence, I mean, don't you think that the people you should be
criticizing are the Muslims doing that and not the people making the observations? Those are my
questions.
SUHAIL KHAN: Okay, okay, I got it. [A] couple of comments. First, I would never say that
some have not misinterpreted Islam in the call for violence. Absolutely. The terrorists are doing
that right now. The terrorists who attacked us on 9-11, they attacked all of us. They attacked me.
I was in the White House that day, they attacked my country. I stand against that. But I don't
want to give them my religion. Just as terrorists in the past have attacked in the name of other
faiths, whether they be Christian or Jewish or whomever, I don't want to give them [my] faith.
Faith is something that is interpreted by their followers and my argument is that the vast majority
of mainstream Muslims in the United States and in the world, do not follow that extreme
interpretation of Islam that bin Laden and his cohorts do. They are the extremists. They are the
minority.
But the vast majority of Muslims that Frank conflates as engaging in this soft jihad, uh, just
because they want to wear a headscarf or dress in traditional clothing or want to go to church on
Friday just as people go to synagogue on Saturday and church on Sunday, that somehow because
they're strict in the adherence to their faith, that that somehow makes them suspect. That is what
I call anti-Semitism with training wheels. Because really what they're saying is that anybody who
practices their faith is, is suspect. And in this case, today it's Muslims. Yesterday it was Jews. The
day before that it was Catholics. Right here I have a whole book, published in 1950, about the
plan for the Catholic takeover of our country. It's a very well-written book. Very reasonable,
smart guy, Paul Blanchard, he spends a lot of time saying he's not a bigot. I bet most Catholics
are good people. But he spends a lot of time in the book saying that Catholics have a secret
pernicious plan to take over our country through the banks and the school educational, uh,
system, etceteras. And now this is laughable. And a few years from now, Frank's theory about the
soft jihad and the vast majority of Muslims that live in this country who have peaceably served
their country like Jamal in the back there are not engaged in a soft jihad. They're living their life
under the Constitution like all of us.

WOMAN: But the word, my question was about the word-MARK HYMAN: No, no, we'll, actually I'm a practicing Roman Catholic, I'd like to borrow the
book afterwards. [LAUGHTER] Uh, can we get some geographic diversity here? Uh, uh,
looking for another
question for Frank. You had a question? All the way in the back, yes sir?
MAN: Yeah-MARK HYMAN: Please.
MAN: Hi, my question is, if Shariah is so contrary to the Constitution cause it supplants the law
of the land, do you share, do you also believe that the Catholic ecclesiastical courts, the Jewish
courts, and even the Methodist ecclesiastical courts are also contrary to the Constitution cause
they're [UNCLEAR] contrary [UNCLEAR]
FRANK GAFFNEY: This is one of the efforts at moral equivalence that we often hear from
apologists for Shariah. I think there's no equivalence, to be perfectly honest with you. Catholics,
whenever the defamation of them in the past, Jews, Methodists, Baptists, Hindus, Zoroastrians, I
believe without exception, acknowledge that there is a supreme authority, a national authority
within which they practice their faiths. That is not true of Sharia.
And I just have to say that this isn't a matter of conflating. There is a tradition within Islam
authoritative Islam. And when you hear Suhail continue to say things that are simply not true,
[about] his faith, it raises the question of whether he simply doesn't know his faith as he
professes to do and I have to assume he's studied it seriously, but none of what he's just said is
true. The recognized authorities of Islam, all of the schools, all of the schools he may find a
person in this country who has no standing within the community. [But] his father, for example,
would not have said what he just said.
SUHAIL KAHN: Thanks, Frank.
FRANK GAFFNEY: His father's successor in [their] Wahhabi mosque out in California would
not have said what he just said. They understand the authoritative teachings of the faith [that]
involve supplanting any laws other than Islam. They involve placing a religious authority the
world-over. Now, I can't be accused of defaming the faith if this is what the faith says itself. It's
not bigotry to point it out. It's taqiyaa to suggest it is bigotry. And I submit to you that we've got
to have in this country at least [the latitude to discuss this]. It's going away in Britain, it's going
away in France, it's going away elsewhere in the world under the Brotherhood's efforts, the
Organization of Islamic Conference's efforts, to ban free speech whenever a guy like, well,
maybe Suhail, takes offense at what is said about Islam. That would be the end of the
Constitution of the United States. Certainly it's freedom of speech protections on which I think
everything else is built. And I personally am not going to go quietly if they're going to try to
impose that upon us in this country. Especially under excuses that this is in fact just sort of like
Jewish courts and Catholic ecclesiastical law. It's simply not.
MARK HYMAN: Question for Suhail? Hands. Gentlemen standing all the way in the back.

MAN: This is for Suhail. My question is this. The questions being asked are asked as if they are
[subjective] when the fact is these are issues of fact. Almost all Islamic law is translated into
English for over thirty years and all you've ever had to do was read it. Would you suggest that
you were basically saying [UNCLEAR] written by Muslims or are you [UNCLEAR] get it
anywhere, in any mosque, go get them and go read them and find out what the answer is. My
question is, do you think that's a fair thing to do? Seven years into the war on terror, asking
questions, they are simply an indication of mindless institutional endeavor, seven years into it
decided [UNCLEAR]
SUHAIL KAHN: Yeah. No, that's a good, that's a good question. To answer your question, if you
were to read a text on Islamic law, it's an interpretive law. So if, [UNCLEAR] if you read a text
on Islamic law, I think that's a great idea. People should do it, just as you would read a text on
Christian law or Jewish law to learn. But you would never have a definitive answer on Islamic
law as you would on Christian law or Jewish law because it's, it's interpretive. It's interpretive.
So for example, if you read a book on medieval Christian law, you would probably take umbrage
at some of the things said in that book. Likewise if you read, because it's contextual. It's
contextual. Islamic law is interpretive. And if you, if you, as you do have Muslim scholars in this
country who interpret the law, they interpret it for the land that you live in. Now, you have to
remember that having said that, that Islamic law in any way, shape or form, whether it's for
buying your home, or what you're going to wear, when you, you know, when you go to church or
things like that, that's going to apply to people in their personal lives.
The U.S. Constitution is the supreme land of our country. And we have an establishment clause
that clearly says the U.S. government will never establish any one faith over the other. That is the
protection. So that's what we need to remember, that, as Americans, we don't want to establish
any one faith. At different times, at different times in history, Judaism was interpreted violently,
Christianity was interpreted violently, the Sri Lankan Tamil Tigers who engage in suicide
bombing interpret their faith against majorities in Sri Lanka in a violent way.
It's sad that God has been called down in every side of a fight and I'm sure God wearies of it. But
we as human beings should remember that we live in a country of laws under the U.S.
Constitution where no religion or religious law is going to take precedence over another.
Number two, the last thing I want to say [is] about taqiyaa. Taqiyaa is brought up by people who
want to say basically that Muslims can say anything they want in defense of their religion, even
if they have to lie. Taqiyaa was not a principle that is accepted by all Muslim scholars, number
one, definitely not by all Muslim schools of thought. Taqiyaa was a concept that was developed
by Shia scholars which are the vast [minority] of the Muslim faith because of the persecution
they faced at the hands of the majority Sunnis. And they said that you can't, if you're being
persecuted, at times of death, you can say I'm not a Muslim, I'm not a Shia, whatever to defend
yourself. That same principle was also espoused by Mamonides in Spain. When Jews were being
persecuted by the Christians, he had the concept of a Jewish taqiyaa, the same type of concept
that, if you're Jewish and you're going to be put to death because you're Jewish, by Christian
inquisitors, you can say, I'm not Jewish. God knows the truth. And that was a very limited type of
response for people that are being persecuted and Islam is not unique, even the minority opinion
to have that type of theology.
FRANK GAFFNEY: Well, this is not a matter of interpretation. This again suggests either an
ignorance of the faith or the practice of taqiyaa and I'd like to [note Suhail's] acknowledge[ment]
that at least it is an accepted practice by some in the faith. I believe it is an accepted practice by

Sunnis, as well as Shia. It's certainly being practiced. But the point is, the interpretation of this
faith stopped about twelve hundred years ago. There was a consensus of the scholars, the "gates
of ijthahad" are closed. And I don't know where you've been, but that's the authoritative
view. I've got to stop reading your faith's authoritative texts. That's what you're suggesting.
Believe me, I appear to have read more than you have, Suhail, and that's what really is
astonishing to me.
SUHAIL KHAN: [OVERLAP] --Frank.
FRANK GAFFNEY: I've got to get on The Reliance of the Traveler, which is recognized as an
authoritative text by al-Azhar and the Saudi clerics and many of the Brotherhood organizations
that [Suhail has] been associated with for many years. This isn't me making it up. This is [what]
was mentioned by the questioner, [things] anybody can get their hands on, anytime they want to.
And the people who keep telling you otherwise, don't want you to know the truth.
I'm not going to assign any particular motivation to that, maybe [Suhail] can clarify it. But all I'm
telling you is, when you hear that this is "interpretive," and it's all sort of special cases depending
on the nation and its rules, [that's] simply not true.
Under Islam, the beauty of Shariah, the beauty of [its] program is that [it is] going to be a source
of world peace because it is absolutely monolithic. It is going to be imposed and everyone will
submit to it either by becoming practitioners of the faith if they choose to or by having to accept
a "Dhimmi" status, or by dying. Those are the three choices that all of the schools [endorse] and
that's where this leads us if we don't recognize it as such and counter [it].
[One] last point. The establishment clause is just one of the pieces of the Constitution that clearly
is incompatible with Shariah. My point is they're trying to impose Shariah in a way that is
inconsistent with the Constitution of the United States. Don't tell me the Constitution is going to
protect us against it unless we actually use it to protect us against it and prevent this seditious
program from being insinuated in our country.
MARK HYMAN: Amazingly, Frank and Suhail actually carpooled together. [LAUGHTER]
SUHAIL KHAN: That's why we were late.
MARK HYMAN: Actually, this gentlemen's been so patient here. Question for. . .?
MAN: For Frank.
MARK HYMAN: Please.
MAN: I'm not an expert in the Koran either but I've spoken with a number of theologians and
missionaries who are and they seemed in agreement, at least the ones I've spoken with, the
passages you labeled as latter Meccan are actually
FRANK GAFFNEY: Medina.
MAN: Medina, I'm sorry are actually denouncements of sort of a quasi-Christian cult known as
the [UNCLEAR] and that the interpretation that you're reading becomes not so much from the
Koran but from [UNCLEAR] and the Wahabbi doctrine. With that in mind, don't you at least see
a glimmer of hope that the recent announcement that the Turkish scholars are going to be editing
the Medina?

FRANK GAFFNEY: Look, I can find hope in all kinds of things. But I'm reluctant to find hope
in the suspension of fact and its pursuit. And I don't believe for a moment and Suhail continues
to insist, as do most people who are promoting this lie that it's just al-Qaeda and minority [of
Muslims] on a tear. That they've got this whacked interpretation of a religion and there's no
talking to them because they're crazy and they're terrorists and we don't want to complete them,
as you say, with having something to do with Islam.
But what I'm telling you and he's not is that they are actually reflecting authoritative Islam.
The people who are the guys who run the faith, who run its institutions, who hold sacred its
interpretations, its texts, its practices are indistinguishable from the people that he's describing
now as terrorists who somehow have some lunatic ideas [about] Islam. With the greatest of
respect for the interfaith dialogers, and their numbers are legion, I don't believe they are studying
up on this either. And to the extent that they're seeking desperately to find some ray of hope in
the gloom of the factual evidence that I'm talking about here, I think they're mistaken and frankly
they're misleading you.
MARK HYMAN: We're running out of time here. But we have a question over here for Suhail.
Gentleman on the left.
MAN: I think that the question should be just a little bit different. Instead of "Is Islam a religion
of peace?", the question should be: "Is Islam possibly compatible with the modern world?" It's
not just the Christians and Jews, there is nowhere in the world that you can reconcile Islam with
modern practices and modern lives there. And this is leading to what's really a clash of
civilizations. And short of complete separation, I mean apartheid; you're going to have war.
SUHAIL KHAN: I would agree with that. I don't agree that there's a clash of civilizations, I
believe that it's a clash of civilization with those against civilization. The terrorists are against
civilization. Malaysia is a majority Muslim country. In Malaysia, women are equal to men and
they are practicing Muslims. The women wear their headscarves, they go to the mosque, but they
are the most educated, even better than men, in Malaysia. When I was in Malaysia, they
complained that the men tend to be a little lazy. Women are leading institutions.
In the Muslim world, we've had three, at least three Muslim countries that have elected Muslim
women leaders. Turkey, Bangladesh, Pakistan. So there are countries that have medieval
interpretations of their faith, including Afghanistan. But the vast majority of Muslims again are
very compatible with modernism and with democracy. Iraq, for example, is a predominately
Muslim country that instituted Shariah law there, even though the U.S. is there. But that's what
that means. Shariah law means that they [UNCLEAR] for people to eat kosher-types of food,
what we call halal, women can wear scarves in public, etceteras. They don't have a draconian
interpretation of Islamic law like say Afghanistan does. There they have integrated their Islamic
principles with democracy. They have a parliament, they have a president, they have a prime
minister. And it's completely cohesive, it's completely cohesive. The same goes for Malaysia, the
same goes for other countries.
So Shariah itself is not antithetical to democracy or modernism, because, again, it's interpretive.
Frank seems to be reading all these whack-job websites put up by terrorists and/or people who
hate Muslims, saying this is what Muslims are saying. and no matter how much Muslims like me
say that's not the truth, he says, I don't know my faith. Or he seems to say that my dad, you
know, would know better. Who, my dad, a high-tech engineer, very modern, came to this country
with his freedom, well, of course, Frank decided he must be a Wahhabi because he goes to
mosque, God forbid, on Friday.

And I promised I would answer the issue about terminology. I said about terminology that to call
terrorists, because they do something in the name of their faith, it only validates them, I think is
wrong, it's because it gives them the religion that we don't want to give them. And we've heard it
before, remember when people were against communism in the 20s and 30s, many misguidedly
called it Jewish bolshevism. Winston Churchill called it Jewish bolshevism in order to conflate
Judaism with communism. He was wrong then and those that say Islamic terrorists now are
Jihadists are wrong now. That's the simple answer there. That they are doing it in the name of
their faith, we shouldn't give it to them because they are not manifesting true religious belief.
MARK HYMAN: Now, I'm told we're running out of time, but I'm a dangerous man. I'm a
television personality with a microphone. So I'm going to squeeze in one more question for each
of our guests. And this gentlemen is about to explode. Okay, your question is for, for. . .?
MAN: Suhail. Very short question. Telling people that Shariah law is peaceful, I believe, the only
way to do that is to provide one example [that clearly and unambiguously of Shariah law text for
Islam that clearly and unambiguously stands against any of the following concepts: a) death for
apostates, b) beating women and stoning them to death, c) calling Jews pigs and monkeys and d)
declaring jihad or wars against non-Muslims to subjugate them to Islam, e) enslavement of
female war prisoners and raping them as in Darfur, f) fighting Jews before the end-days and
killing of all of them and g) killing gays. Provide one single evidence, by one single book, not
two, believe me, one single Shariah book that stands clearly and unambiguously against these
concepts, I will come with you and say Shariah law is peaceful.
SUHAIL KHAN: Absolutely. Absolutely. Let me comment. There are, there are several Islamic
scholars, first of all, you're a little [UNCLEAR] again, these medieval interpretations of
[OVERLAPPING VOICES] Absolutely, absolutely. And there are modern ones: Khaled Abou elFadl, a graduate of Yale University, University of Pennsylvania Law School and a PhD. graduate
of Princeton University, currently at UCLA, is developing a book on Shariah. And Sheik Hamza
Yusef, whom Frank called a Wahabbi. He is developing a book on Shariah and he also has a
seminary
MAN: They don't exist.
SUHAIL KHAN: They do exist. And they have Shariah and they have developed Shariah
specific to the American context. They are graduates of the schools in the Muslim world and
they're graduates of schools here in the United States. And just as I said, they have taken the
interpretation of Islamic texts, the teachings of the Prophet Mohammed, peace be upon him, and
they have integrated that into a Shariah-compliant, constitutionally compliant program for
American Muslims to live their lives under the Constitution, in no way abrogating the
Constitution, and in no way running up against the Constitution, but just living their lives under
the free principle that all of us Americans can do to practice our faith freely. That is what their
principles are.
I always want to remember that you can always take negative quotes from the Koran and put, the
quotation that Frank, you know, when I went to Sunday school I would see them there every
weekend, we learned do not contend with the People of the Book, Christians and Jews, except in
the fairest way. Those are the controlling verses. "Be they Muslims, Jews, Christians, those who
believe in God in the last day and who do good deeds have their reward with the Lord. They
have nothing to fear and they will not sorrow." Which is why, when the Jews are being
persecuted in Spain at the hands of the Catholic church at the time, where did they go? Muslim
countries, Morocco, Iran. And to this day, there are Jewish communities living in those countries.

Now, have they been persecuted subsequently? Absolutely. In the name of politics. People might
use religion to do it, but again, it's not something that represents the faith, it represents the
ugliness of politics.
FRANK GAFFNEY: None of the people you mentioned have any standing.
SUHAIL KHAN: They absolutely do.
FRANK GAFFNEY: They turn to the authoritative practices of the faith. They do. If what you
say is true and these are books that haven't been written yet.
SUHAIL KHAN: They have been written. They have been written.
FRANK GAFFNEY: Well, they haven't been published yet. They haven't been authoritatively
affirmed yet.
SUHAIL KHAN: They have.
FRANK GAFFNEY: They are not going to be anything other than apostates if they actually
SUHAIL KHAN: To you, to you they will be.
FRANK GAFFNEY: [are exposed] within your Muslim
SUHAIL KHAN: Look, al Qaeda maybe. But not to everybody else.
FRANK GAFFNEY: I'm talking about Al Azhar in Egypt. I'm talking about the grand muftis of
Palestine. I'm talking about the Wahabbis in [Saudi Arabia]. And, by the way, just so we're clear.
It is absolutely the case that there are lots of Muslims, I said it in my remarks, who don't want to
live under Shariah. Many of them are lucky enough to live in places where the Arab influence
has not yet become dominant.
But you look at Malaysia. It is in the throes of being taken over by the Wahhabis. And it will be
the case when that happens, as it is happening in Turkey, as it is happening in Indonesia, as it is
happening in the Philippines [where] the moderate practice of the faith, which bears some
resemblance to what he's talking about, not any resemblance to the authoritative practice, but
nonetheless the way hundreds of millions of Muslims have practiced the faith it will be
extinguished. Because it is not consistent with Shariah and when the Wahhabis are done with
[them], and the Brotherhood is done with them, they will all be compliant with Shariah.
MARK HYMAN: Methinks it's going to be a really quiet car ride home for the guys
[LAUGHTER] And I need one more question to balance it out for Mr. Gaffney. Yes, please sir.
MAN: Yeah, Frank, I mean, dialing back to this issue, and I promise, Mark, I will make it very
quick and there is a question here. You know, it just seems to me that there's a flaw in your logic
inasmuch as, you know, you equate the extreme views of certain scholars with their approach to
religion with pushing out the moderates in that religion. I mean, according to my own faith, I'm
not really Jewish because I don't practice the same way as the Lubavichers in New York. And so
I want you to comment on that aspect of it which is the fact that there are extremists in any faith
who study the faith quite a bit more than anybody else, but they're not controlling everybody
else. And I wonder how you sort of equate that. Number two, jumping back to this issue of

constitutionality, again there are extremists in every faith who would do things that would
subvert, there are extremist evangelicals who would subvert what the high court has said is a
fourth amendment right to privacy in terms of blowing up abortion clinics. Do you think that
they're the Evangelical Christians who want to blow up abortion clinics are subverting the
constitution?
FRANK GAFFNEY: Well, there you go again. [LAUGHTER] The moral equivalence between
lunatics who are blowing up big abortion clinics in the name of their faith and a faith that is
waging jihad against the world, I mean, it's not even apples and oranges. [OVERLAPPING
VOICES]
SUHAIL KHAN: Cause you're not, Frank. In the end, your, cause they would say, the people
who are blowing up these clinics would say that it is their faith and they are being taught, by, by
certain scholars who know more about the Bible than you and I do. Who are interpreting this
wait, that's what you're getting at here. That's the
FRANK GAFFNEY: No. The reason I would be able to answer your question, and then you tell
me whether I am or not is, I disagree with your proposition. You're suggesting, as Suhail is
doing, as in fact Islamists do all over the world, that for the purposes of waging soft jihad, it's
just extremists. You don't need to worry about the mainstream. But what I'm saying to you, and I
apologize that this hasn't been sufficiently clear, what I'm saying to you is the "mainstream"
adheres to these views. It is the authoritative version of the faith. And you can listen to
Brotherhood folks, you can listen to pathologists, you can listen to interfaith dialogers till the
cows come home. And it doesn't alter the very fundamental fact that the gentlemen at the back of
the room pointed out and that is, this is something that lends itself to absolute proof. Just look at
the authoritative texts.
Don't take [Suhail's] word for it, because either he's dissembling or he doesn't know. And I'll let
you be the judge. And I'm telling you, not on the basis of some whack-job's website but on the
basis of his faith's authoritative texts. And authoritative practices as they have been settled in all
of the schools. I don't know if this means anything to the non-Muslims in the room, but these are
the guys who determine the faith in all of the schools of Sunni Islam and all of the schools of
Shia Islam.
SUHAIL KHAN: Not so.
FRANK GAFFNEY: So, when he says not true.
SUHAIL KHAN: It's not true.
FRANK GAFFNEY: Again, find out, folks. You can do this. And I'm simply saying to you, your
country is on the line. If you don't do it and you listen to this siren song, you will wake up some
fine day and discover that you're a dhimmi. If you're lucky, maybe you'll have the chance to
convert. Or worse, you'll just be dead. And that's not a pretty picture and I'm not a racist or a
bigot for saying it, though he and his friends have often said so.
MARK HYMAN: All right, we're going to wrap it up with five minute closing comments. We'll
start off with Suhail.

SUHAIL KHAN: Thank you, Mark. Basically what you've heard tonight is that there are two
world views.
Resembling two world views, and you have a choice to decide which world view you want to
follow. One wishes to protect America, her people, her values, her land, her Constitution, her
reason for being. Those of us who adhere to that world view, we have opposed any and all
attacks on America and Americans and we will defend our country to the death. We defend
Americans of all faiths for their freedom, in their freedom. We oppose murderers who attack us
and whatever, whatever their claimed religions or reasons they might have, we will defend our
country. That's one world view.
And there's another world view. A different world view. That's bin Laden's. He wants to divide
America and the Muslim world. He believes America and Islam should be at war. There is a fifth
column in the United States that agrees with bin-Laden. They share this world view. They join in
this unholy desire to foster hatred between Muslims and all Americans. We must stand united
against bin-Laden, as I said, and we need to stand against the racists who share that same world
view. They are wrong and they will be defeated.
There's a book I'll recommend. Who Speaks For Islam? Frank seems to be the one who wants to
interpret who that is. Let's, let's read the people who've actually done the study. There was an
extensive Gallup poll throughout the Muslim world and they pointed out that for Muslims
overseas who support violence, they do so for secular or political reasons. The vast majority,
over 91%. Those Muslims most opposed to violence and terror cite their faith as the reason for
opposing violence. It is religion that is the answer, not the problem.
Robert Pate in his study of terrorism in the world, Dying To Win: the Strategic Logic of Suicide
Terrorism, the central fact is that overwhelmingly, suicide terrorist attacks, he cites ninety-five
percent are not driven by religion as much as they are by a clear strategic objective to compel the
withdrawal of military forces from a territory. He cites Lebanon, Kashmir, Sri Lanka, Chechnya
and the West Bank. Years ago, we saw the kamikaze pilots. It's politics people, not faith.
These facts are known to the United States government and this is why our president and military
leaders opposed confusing fighting a political foe with promoting hatred for an entire faith.
These facts are known to the bigots. And they have their own agenda which does not include
protecting or strengthening America.
Americans of all faiths, Protestant, Catholic, Jewish, Muslim, Mormon, Hindu, bring strength to
America and are protected by our constitution, included in our national fabric. The historian
Gerald Early once said that there are three things that are uniquely American: Jazz, the
Constitution and baseball. Well, baseball is a great metaphor for what we're talking about today.
Our national pastime only truly became so when all Americans regardless of race or faith were
allowed to participate freely. Hank Greenberg, in 1930, began playing for the Detroit Tigers. And
despite virulent anti-Semitism from other players and fans, he became one of the game's all-time
greats and a member of the Baseball Hall of Fame. And on April 15th, 1947, Jackie Robinson,
the grandson of slaves, stood on the shoulders of greats like Greenberg and broke the color
barrier when he took the field for the Brooklyn Dodgers. That evening, at 1574 50th Street, in
Borough Park, Brooklyn, a family gathered for the seder, a feast of Passover, "Why is this night
different from all other nights?" asked the youngest male in the centuries old tradition. And
before the father could respond, the boy answered his own question. Because a black man is in
the major leagues.

Today, I tell you we are at a similar crossroad. We'll continue to be a shining city on a hill as
Ronald Reagan called us when all Americans may feely freely participate in our democracy.
And I'm confident [UNCLEAR] will prevail. Why? Because America is a great nation. We're a
beacon of hope. And time and time again, we've overcome hate and ignorance to welcome new
Americans into our great national fabric. And despite the organized campaign of hate, I'm proud
the same is happening for Muslim-Americans everyday.
MARK HYMAN: One minute, please.
SUHAIL KAHN: Even after 9/11 and all the lies and hysteria, true Muslims have been elected by
their fellow Americans to serve in Congress, both from majority non-Muslim districts. President
Bush appointed Americans like me and, despite all the lying and the shameful attacks, the
president has stood with me and not with the racists who attacked me.
I'm an American, an American who is optimistic, Frank, about our future. A future where all
Americans, regardless of race, ethnic origin and faith or no faith at all can join and work
together to promote our right of free expression, a political vision of shared concern and of
personal faith. Our forefathers boldly proclaimed, "We hold these truths to be self-evident, that
all men are created equal. They are endowed by their creator with certain inalienable rights.
Among these are life, liberty, and the pursuit of happiness." As people of faith, Jews, Christians,
Muslims, as Americans, we should join together to promote life and liberty political, religious,
economic liberty for all people.
This is what I had hoped Mr. [UNCLEAR] would have discussed when he was here and those of
us who wish us harm must be defeated, no doubt about it. But in doing so, we should work with
all freedom-loving people in this important cause. Likewise, we should resist the call to respond
to the hate of our enemies with the bigoted hatred of our own making. We are Americans and we
take great pride in the fact that regardless of ethnic or religious heritage, we stand united as one
people. As Americans. As Americans, we are united in defending our cherished liberty in the
many long days ahead. Thank you.
[APPLAUSE]
FRANK GAFFNEY: Well, that's a very elegant closing comment, And I actually agree with
much of it.
I agree that we are in fact confronting, in the form bin Laden and his ilk, a radical, a totalitarian,
a
dangerous ideology that is bent on our destruction.
I agree that there a Fifth Column, Suhail's term, inside the United States, [only it's] working to
advance exactly that agenda.
I agree that they must be fought ruthlessly and successfully because everything we hold dear, and
I take Suhail at his word that he holds dear all the things that I hold dear, we ought to want to see
survive.
And that won't survive if this ideology, which embraces explicitly, by its terms not mine, not
Robert Spencer's, not whack-job websites' by its terms, Shariah law and accepts as its express
purpose establishing that law over the whole world. Not just here. Not just in Malaysia or
Indonesia or the Philippines or Western Europe. But the whole world.
Don't take my word for it, that's what they say. And it's not just bin Laden who says it.
And I must say, I would feel infinitely better about our conversation tonight, infinitely more
encouraged by particularly that wonderful rousing patriotic, love-America closing if Suhail
hadn't spent the entire evening denying what I am saying about Shariah.

Because that's kind of a test, folks. If you don't acknowledge what this Fifth Column is animated
by, if you don't recognize that it's not just bin Laden and whack jobs on that side, terrorists who
don't really, according to Suhail, have anything to do with Islam except they have everything to
do with Islam. They wrap themselves in the mantle of Islam. And rightly or wrongly, so do the
authoritative interpreters and practitioners of this faith.
Now there are many in this room, I recognize them from past associations, who have developed a
friendship for Suhail. And he's a likable fellow. He articulates beautifully what we all hope to see
and obtain from patriotic, law-abiding, tolerant Muslims in this country. But you will not find
such people denying the reality of Shariah as defined by the authorities, and practiced, sadly, by
millions of their co-religionists. Not all of them. Certainly not all of them in this country.
And as I said in my opening remarks, our only hope especially if this gentleman [in the
audience] is correct that we're in a clash of civilizations our only hope is that we are able to
enlist those Muslims who are genuinely tolerant or genuinely law-abiding, who genuinely want
to live side-by-side with People of the Book, who genuinely appreciate the uniqueness, the
extraordinariness of our Constitution, and the form of government and the opportunities that it
has presented us. [We need] those Muslims [to] join us in defending everything we hold dear,
against those who adhere to Shariah and who have stated in the form of the Muslim
Brotherhood's 1991 directive, in al-Banna's writings and in the authoritative texts that their duty,
their obligation as Muslims is to destroy everything that I've just talked about.
MARK HYMAN: One minute, please.
FRANK GAFFNEY: So you, ladies and gentlemen, have troubled yourself to come out and
listen to this. You can walk out of here tonight saying, well, the guy who was Muslim says the
guy who wasn't is all wet. And you can let it go at that. Or you can do what al-Jazeera may do
and you can take my quotes and you can [construe me as] some sort of rabid hatemonger.
Or you can go do what your civic duty requires. And that is to go study up on this. Go expose
yourself to these facts, which are knowable, which are readily available. If you want to, get them
from Robert Spencer, because he's [readily accessible]. If you don't, go to the [Islamic
authorities], go to the texts that they themselves use, translated conveniently, by the Saudi
government, into English. For your edification. Actually, for your submission.
But this is the moment, ladies and gentlemen, because the soft jihad is progressing inexorably.
And it can be dismissed and people like me who are pointing it out can be called racists and
bigots. But it's up to you to decide. It is your civic duty, if you love this Constitution, as I'm sure
you do, if you care enough about finding out what the truth is to not only bestir yourself to get
out to wherever the hell it is we are today, [LAUGHTER] but to find out what the truth is, then I
urge you to do so. And if you do, I will bet you dollars to donuts, you will come out recognizing
that I'm right and [Suhail's] wrong. Thank you.
[APPLAUSE]
MARK HYMAN: This much I can promise you. Tonight's presidential debate will be
anticlimactic in contrast to what we have witnessed tonight. Please give a round of applause to
both of our debaters. [APPLAUSE] I'd like to thank Suhail Kahn and Frank Gaffney for their
participation not only in their remarks, but also in the Q and A session. I'd like to thank the
Harbour League for hosting such an important event. I'd like to remind all of you, again, the
Harbour League would love to have you as members, certainly welcome your tax-deductible
contribution. The web address is theharbourleague.org. And on behalf of the Harbour
League, thanks for coming this evening. Have a good night. And please travel safely. Thank you.

http://www.centerforsecuritypolicy.org/p17779.xml?genre_id=1003

Treasury submits to Shariah

Nov 04, 2008

The U.S. Treasury Department is submitting to Shariah - the seditious

religio-political-legal code authoritative Islam seeks to impose worldwide
under a global theocracy.
As reported in this space last week, Deputy Secretary of the Treasury Robert
Kimmitt set the stage with his recent visit to Saudi Arabia and other oil-rich
Persian Gulf states. His stated purpose was to promote the recycling of
petrodollars in the form of foreign investment here.
Evidently, the price demanded by his hosts is that the U.S. government get
with the Islamist financial program. While in Riyadh, Mr. Kimmitt announced:
"The U.S. government is currently studying the salient features of Islamic
banking to ascertain how far it could be useful in fighting the ongoing world
economic crisis."
"Islamic banking" is a euphemism for a practice better known as "ShariahCompliant Finance (SFC)." And it turns out that this week the Treasury will
be taking officials from various federal agencies literally to school on SFC.
The department is hosting a half-day course entitled "Islamic Finance 101"
on Thursday at its headquarters building. Treasury's self-described "seminar
for the policy community" is co-sponsored with the leading academic
promoters of Shariah and SCF in the United States: Harvard University Law
School's Project on Islamic Finance. At the very least, the U.S. government
evidently hopes to emulate Harvard's success in securing immense amounts
of Wahhabi money in exchange for conforming to the Islamists' agenda. Like

Harvard, Treasury seems utterly disinterested in what Shariah actually is,

and portends.
Unfortunately, such submission - the literal meaning of "Islam" - is not likely
to remain confined long to the Treasury or its sister agencies. Thanks to the
extraordinary authority conferred on Treasury since September, backed by
the $700 billion Troubled Asset Relief Program (TARP), the department is
now in a position to impose its embrace of Shariah on the U.S. financial
sector. The nationalization of Fannie Mae and Freddie Mac, Treasury's
purchase of - at last count - 17 banks and the ability to provide, or withhold,
funds from its new slush-fund can translate into unprecedented coercive
power.
Concerns in this regard are only heightened by the prominent role Assistant
Treasury Secretary Neel Kashkari will be playing in "Islamic Finance 101."
Mr. Kashkari, the official charged with administering the TARP fund, will
provide welcoming remarks to participants. Presumably, in the process, he
will convey the enthusiasm about Shariah-Compliant Finance that appears to
be the current party line at Treasury.
As this enthusiasm for SCF ramps up in Washington officialdom, it is worth
recalling a lesson from "across the pond." Earlier this year, the head of the
Church of England, Archbishop of Canterbury Rowan Williams, provoked a
brief but intense firestorm of controversy with his declaration that it was
"unavoidable" that Shariah would be practiced in Britain. Largely
unremarked was the reason he gave for such an ominous forecast: The U.K.
had already accommodated itself to Shariah-Compliant Finance.
This statement provides an important insight for the incumbent U.S.
administration and whomever succeeds it: Shariah-Compliant Finance serves
as a leading edge of the spear for those seeking to insinuate Shariah into
Western societies.
Regrettably, SCF is not the only instrument of the stealth jihad by which
Shariah-promoting Islamists are seeking to achieve "parallel societies" here
and elsewhere in the West. The British experience is instructive on this
score, too. Her Majesty's government has allowed the establishment of at
least five Shariah courts to hear (initially) family law cases. Polygamists in
the U.K. can get welfare for each of their wives (as long as all the marriages
beyond the first were performed overseas).
Thus far, we in this country may not have reached the point where evidence
of this sort of creeping Shariah is so manifest. But Treasury's
accommodation to SCF demonstrates that we are on the same trajectory -

the one ordained and demanded by the promoters of Shariah, one to which
we serially accommodate ourselves at our extreme peril.
After all, the object of Shariah is the supplanting of our government and
Constitution, through violent means if possible and, until then, through
stealthy ones. Islamists, having secured footholds via their parallel societies,
inevitably use those to extend their influence over Muslims who have no
more interest in living under authoritative Islam's Shariah than the rest of us
do. Inexorably, it becomes the turn of non-Muslims to accommodate
themselves to ever more intrusive demands from the Islamists. It is known
as submission, or dhimmitude.
Soon - possibly as early as this Wednesday - the Treasury Department and
the other federal agencies will be taking orders from representatives of
Barack Obama or John McCain. It may be that the outgoing administration's
determination to advance the Islamist agenda via "Islamic Finance 101," and
what flows from it, may be the first, far-reaching policy decision inherited by
the new president-elect. If he does not want to have his transition saddled
with an implicit endorsement of submission to Shariah, the winner of the
White House sweepstakes would be well-advised to pull the plug on
Thursday's indoctrination program and the insidious industry it is meant to
foist on the "policy community," our capital markets and our country.
Frank J. Gaffney, Jr. is president of the Center for Security Policy and a
columnist for The Washington Times.
http://www.centerforsecuritypolicy.org/p17792.xml?cat_id=220

Uncle Shariah

Center for Security Policy | Dec 16, 2008

By Frank Gaffney, Jr.
The insurance giant AIG has lately become the poster child for corporate risk-taking,
mismanagement and greed. Its unimaginably large losses, rooted in insurance it extended to
financial companies engaged in subprime mortgage-backed transactions, have destroyed both
AIG's corporate reputation and balance sheet.
Indeed, but for the fact that Treasury Secretary Henry Paulson who during
his days running Goldman Sachs had extensive ties to AIG deemed the
insurance firm "too large to fail," the company would surely have gone under
by now. Instead, Paulson gave AIG well over $40 billion of the slush-fund
Congress intended to bailout the financial sector (part of a total $150 billion
the U.S. has sunk in AIG to date). As a result, you and I and our fellow
taxpayers have now been saddled with ownership of nearly 80% of this once
high-flying and now floundering global insurance enterprise.
Another result of AIG's nationalization is, if anything, even more worrisome.
All of us taxpayers are now owners of a company that promotes Shariah law
the brutally repressive, totalitarian theo-political-legal program of
authoritative Islam.
It turns out that AIG has a subsidiary specializing in takaful insurance
products that are purportedly "Shariah-compliant." I say purportedly
because while they have been cynically deemed "pure" (halal) by Shariah
advisors that AIG employed for the purpose of making such certifications
the Islamic code expressly prohibits business transactions that involve risk.
Consequently, insurance products designed to hedge against risk are
inherently "impure" or haram.

Whatever the status of AIG's takaful products under Islamic law, the U.S.
government now has a vested interest in their financial success. Uncle Sam
has become Uncle Shariah.
In so doing, Henry Paulson has acted in a manner that not only appears to
smack of a conflict of interest and egregious disregard for the public's
fiduciary interests. He also seems to have violated the Constitution.
The First Amendment of the Bill of Rights has long been interpreted as
prohibiting the establishment of any national religion or conferring upon one
religion a preference over others. By taking a massive stake in a company
that explicitly promotes Islam's Shariah law, the U.S. government is acting
at odds with both of these revered principles.
Fortunately, an important legal initiative has just been launched aimed at
blocking Secretary Paulson and the Federal Reserve Board from engaging in
this sort of unconstitutional behavior via Shariah-Compliant Finance (SCF)
and other commercial transactions. A lawsuit filed Monday 15 December in
U.S. district court in Michigan by an Iraq war veteran named Kevin Murray
contends that:
"The Shariah-based Islamic religious practices and activities that the
government-owned AIG engages in activities that are funded and
financially supported by American taxpayers, including Plaintiff, who is forced
to contribute to them are antithetical to our Nation's values, customs, and
traditions with regard to religious liberty, religious tolerance, and the
proscriptions of the First Amendment. These government-funded activities
not only convey a message of disfavor of and hostility toward Christians,
Jews, and those who do not follow or abide by Islamic law based on the
Quran or the teachings of the Prophet Mohammed, but they also embody
actual commercial practices which are pervasively sectarian and which
disfavor Christians, Jews, and other infidels,' including Americans."
The litigation seeks relief in ways that would be far-reaching at a time when
the U.S. government has bought not only most of AIG but owns some
twenty other financial institutions and seems intent on encouraging their
embrace of Shariah-Compliant Finance. (Notably, in November, Paulson's
fellow Goldman Sachs alumnus and point-man for the financial sector
bailout, Assistant Treasury Secretary Neel Kashkari, convened an "Islamic
Finance 101" seminar where officials in the "policy community" were
propagandized by Harvard University professors and other champions of the
SCF industry.)

The court is being asked to rule that, among other things, the defendants'
"policy and practice of approving, endorsing, promoting, funding, and
supporting Shariah-compliant finance" and "the United States government's
ownership interest in and use of taxpayer money to financially support AIG
and its Takaful Insurance business, which is pervasively sectarian, violate the
Establishment Clause." In addition, Murray v. Paulson seeks a permanent
injunction against such practices both with respect to AIG and ShariahCompliant Finance more generally.
Most Americans remain unaware of the menace posed by Shariah, let alone
the extent to which it is being insinuated stealthily into our country. (Happily,
the latter is the subject of an excellent new book by the acclaimed scholar of
Islam, Robert Spencer, entitled, Stealth Jihad: How Radical Islam is
Subverting America Without Guns or Bombs.)
Murray v. Paulson therefore provides not just an opportunity for an urgently
needed constitutional ruling and injunctive relief with respect to the U.S.
government's submission to Shariah. This lawsuit brought on Mr. Murray's
behalf by one of the nation's preeminent public interest law firms, the
Thomas More Law Center, and by the formidable litigator/Shariah expert
David Yerushalmi, who also serves as the Center for Security Policy's general
counsel, affords the American people a vital teaching moment: Official
promotion of Shariah law is unconstitutional and, given Shariah's inherently
seditious nature (it explicitly requires the violent overthrow of all non-Islamic
governments in favor of a global theocracy), acquiescence to its insinuation
in this country constitutes a felony offense known as "misprision of treason."
We cannot tolerate and must not permit Uncle Sam's morphing into Uncle
Shariah. Prompt action by the courts on Murray v. Paulson may spare us
that monstrous transformation.
Frank J. Gaffney, Jr. is President of the Center for Security Policy and a
columnist for the Washington Times.
http://www.centerforsecuritypolicy.org/p17817.xml?cat_id=220

Yes, they can

Center for Security Policy | Nov 10, 2008

By Frank Gaffney, Jr.
Senator Barack Obama became President-elect on the uplifting, if inexact,
slogan, "Yes, we can." This week, there is growing evidence that people who
have in mind doing away with the presidency of the United States and all
other aspects of our secular, democratic and constitutional form of
government are similarly convinced of their inevitable success. Judging by
the sheer audacity of their agenda, "Yes, they can" would appear an apt
description of the prospects for the Saudis and other champions of the
totalitarian program they call Shariah.
In the run-up to an emergency summit outgoing President George Bush has
called to address the now-global financial crisis, the oil-rich Islamists of the
Persian Gulf led by Saudi Arabia have not only established that their
petrodollars are indispensable to any solution. They also seem to have
secured the Bush Administration's acquiescence to the sinister strings
attached to any bail-out of the West in which they might participate.
Specifically, the Saudis and their friends want the United States to join
those, particularly in Europe, who have accommodated themselves to
Shariah. No, we are assured, they aren't taking about the brutal theopolitical-legal code that features such barbaric practices as beheadings,
floggings, stonings, amputations, female genital mutilation and mysogeny
more generally.
All they want, those in the know insist, is for Washington to encourage Wall
Street more and more of which is owned by the U.S. government to
embrace Shariah-Compliant Finance (SCF). A Treasury Department seminar
convened last week depicted SCF as nothing more than a kind of socially

responsible investing vehicle that respects Muslim religious beliefs by

eschewing interest-bearing transactions and those involving pork and "sin"
stocks. So, what's the big deal? The Catholics, Methodists and Jews have
their funds, why not the Muslims?
What makes the Shariah-Compliant Finance gambit both a big and
troublesome "deal" is that, unlike these other religious traditions, Shariah's
adherents are pursuing a global theocracy. They believe they must impose
their agenda on everybody else, religious and secular alike, using violence if
necessary. And SCF is explicitly described by leading practitioners as a
complement to violent holy war: "financial jihad" and "jihad with money."
In other words, there is no such thing as free-standing Shariah-Compliant
Finance. According to all of the recognized authorities and institutions of
Islam, Shariah is a unified, indivisible program to which all faithful Muslims
must adhere comprehensively.
Not surprisingly, therefore, the Saudis & Co. are not simply seeking to
insinuate Shariah-Compliant Finance into our capital markets. They are also
advancing the creation of a parallel Shariah-governed society through
various other means.
One of these techniques will be in evidence when the Saudi monarch himself
convenes a meeting in New York City in the hope of imposing Shariah
blasphemy laws worldwide. In light of the stated, and seemingly benign,
purpose of the so-called "Culture of Peace" event hosted by King Abdullah at
the United Nations namely, promoting interfaith understanding and
tolerance, numerous world leaders, including President Bush, will be present.
Never mind that Saudi Arabia is arguably the most intolerant nation on
earth, a fact even some in the Bush administration have acknowledged.
The real reason attendance at the King's sance is going to be impressive, of
course, has more to do with the hope that petro-largesse will flow to those
who ingratiate themselves to the House of Saud. Abdullah appears
confidently to have signaled that, if the West plays ball on the "Culture of
Peace" agenda, the Saudis and their fellow Islamists will be constructive at
what might be called the subsequent "Culture of Money" meeting in
Washington.
What will the answer be when the Islamists insist that free speech must not
allow the slander, libel or defamation of Shariah, or other aspects of their
faith? If the European Union and the United Nations Human Rights Council
have already accommodated themselves to this demand, why should we
object? So what if, by so doing, we would effectively thereby be precluded

from talking about or even understanding the Islamist threat we face, to

say nothing of eviscerating the First Amendment? As the Treasury
Department can attest, we need the money.
Unfortunately, this is no time for us to be diminishing awareness throughout
the Free World of the various, grave dangers we face from adherents to
Shariah's seditious program. London's Sunday Telegraph reported this
weekend that a classified British government assessment has concluded that
there are "some thousands of extremists in the U.K. committed to
supporting Jihadi activities, either in the U.K. or abroad."
Such extremists are said to be engaged in attack planning in the United
Kingdom "either under the direction of al-Qaeda, or inspired by al-Qaeda's
ideology of global Jihad" (read, Shariah). They may inflict "mass casualties"
and constitute a "severe" threat to the Government Security Zone (including
the Houses of Parliament and key executive offices) in the heart of London.
At such a moment, a federal judge in Oregon has held the law criminalizing
material support for terror is unconstitutionally "vague." Taken together with
the other manifestations of our capitulation, is it any wonder the champions
of Shariah are convinced that "yes, they can" have their way with us? Who
will disabuse them of this terrifying notion? We can, but will President-elect
Obama lead the way?
Frank J. Gaffney, Jr. is President of the Center for Security Policy and a
founding member of the Coalition to Stop Shariah (USAStopShariah.org).
http://www.centerforsecuritypolicy.org/p17795.xml?cat_id=220

Treasury affirms dangers of business with Iran

Center for Security Policy | Oct 25, 2007

United States Treasury Secretary Henry M. Paulson, Jr., joined Secretary of State Condoleezza
Rice today in announcing new U.S. sanctions against Iran in response to Iran's continued support
of global terrorist organizations and its refusal to abandon its nuclear weapons program. Today's
actions include the designation of the Islamic Revolutionary Guard Corps (IRGC) and its Quds
Force ancillary wing, as terrorist organizations, and the designation of three Iranian state-owned
banks for involvement in proliferation activities and terrorist financing. The IRGC is embedded
throughout the Iranian economy, with revenue-generating operations in auto manufacturing,
transportation, construction and oil.
In his comments, Secretary Paulson noted: "In dealing with Iran, it is nearly impossible to know
one's customer and be assured that one is not unwittingly facilitating the regime's reckless
conduct. The recent warning by the Financial Action Task Force, the world's premier standardsetting body for countering terrorist financing and money laundering, confirms the extraordinary
risks that accompany doing business with Iran."
Paulson went on to state: "The IRGC is so deeply entrenched in Iran's economy and commercial
enterprises, it is increasingly likely that, if you are doing business with Iran, you are doing
business with the IRGC. We call on responsible banks and companies around the world to
terminate any business with Bank Melli, Bank Mellat, Bank Saderat, and all companies and
entities of the IRGC" (emphasis added).
Secretary Paulson's comments underscore one of the central tenets of the Center for Security
Policy's Divest Terror initiative: the need to strike a powerful blow against Iran, and other terrorsponsoring regimes, by denying them access to the revenue that keeps them in power and enables
them to threaten global security. As the Divest Terror initiative makes clear, all Americans can
play an important role in this fight by insisting that their public and private pension plans,
college endowments, individual retirement account managers, 401(k) plans, and other investment
vehicles are divested of any publicly traded companies that do business with regimes that
sponsor terror.

The Center for Security Policy strongly encourages the American investment community, and all
American citizens, to take note of Secretary Paulson's remarks and to join the War for the Free
World by ensuring that they are not "doing business with Iran" or other terror-sponsors through
banks and companies that do business with these regimes.
http://www.centerforsecuritypolicy.org/p15588.xml?cat_id=222

IRAN WATCH

About the ChavezIranian connection

The Americas Report | Jan 08, 2009

By Luis Fleischman
On December 21st, the Italian daily La Stampa published a story that seems to confirm something
we at the Menges Hemispheric Security Project have been warning about for some time: the real
meaning of the Chavez-Iranian alliance.
According to La Stampa, the regular flights between Caracas, Damascus and
Tehran constitute a device for Venezuela to help Iran send Syria material for
the manufacturing of missiles. That is part of an agreement of military
cooperation signed between Syria and Iran in 2006. According to La Stampa
the materials are destined for the "Revolutionary Guards", the main force
protecting the Iranian regime. In exchange for those materials Iran provided
Venezuela with members of their revolutionary guards and their elite unit,
"Al Quds," to strengthen Venezuela's secret services and police.
La Stampa's report is not surprising to those of us who have been involved
in monitoring Hugo Chavez's activities for the past several years.

In testimony before Congress on March 5, 2008, the Menges Hemispheric

Security Project team pointed out that
Iran Air has weekly direct flights between Caracas, Damascus and Tehran.
There are no large numbers of passengers that justify weekly travels
between theses countries. Therefore, it is reasonable to speculate that these
flights transport material which could be highly problematic. Nothing is
evident but everything is possible. Even while the crisis in the Middle East
continues it is crucial for American decision makers to think about strategies
to contain the Iranian influence in our hemisphere as well as Hugo Chavez,
himself.
In the same testimony we said that the connection between Chavez, radical
Islam and Iran may well be related to the mindset of the Venezuelan
president to exercise a reign of terror, violence and totalitarian rule by using
the oppressive methods of the Islamic Republic. We added that these radical
groups could be used to develop Venezuela's philosophy of asymmetric war
in case of a US or other enemy attack on Venezuela. These tactics propose
a style of fighting that is determined and suicidal, and considered to be
useful in confronting a more powerful enemy, like the U.S. However, radical
Islamist tactics might also serve to impose totalitarian rule first in Venezuela
and then in other countries willing to join the Chavez coalition.
At the end of October 2008, the CSP Menges Hemispheric Security Project
organized a briefing for Congressional staffers working on the Western
Hemisphere. Among the many important topics discussed at the briefing was
the issue of Iranian partnerships with dubious local businessmen in factories
located in sensitive areas with access to strategic routes. One of the
speakers at the conference talked about those partnerships as possibly
including connections between drug trafficking networks that control
sensitive strategic areas and Iran. In fact, Iran has established a financial
and business infrastructure with Chavez's consent and encouragement that
now includes banks, gold mining, a cement plant, a tractor and bicycle
factory, a tuna processing plant and a joint oil venture. This is all very
interesting in light of an incident recently reported by several well known
Turkish newspapers.
They reported that on December 30th, twenty two containers were confiscated
from an Iranian cargo ship bound for Venezuela. The ship was stopped by
Turkish authorities in the port of Mersin near the Syrian border. Iranian
authorities stated that the content of these containers were tractor parts bound
for their factory in Venezuela's Bolivar state. When the Turkish authorities
inspected the shipment, they did not find tractor parts but components to build

weapons, bombs and possibly some radioactive material (this material is still
under investigation).
It is also known that Chavez has for some time provided Venezuelan
territories and airports to drug traffickers, a fact often disregarded by State
Department officials. Now, there are businesses that look like regular
business and factories such as tuna and tractor factories that look like
regular factories, all of them located in sensitive areas near the Orinoco
River (an important connection between Colombia and Venezuela) in
Venezuela with access to the Caribbean and to the Atlantic Ocean. These
factories serve drug operations and involve partnerships with Iranian
elements. As such they provide Iran with access to areas such as Panama
and drug-trafficking routes that are most likely used to transport drugs
overseas and to provide weapons to the FARC and other terrorists.
In addition, Iran signed an agreement with Venezuela and Nicaragua to
jointly build a $350 million deep water port at Monkey Point, on the east
coast of Nicaragua. This location is near Colombia, Venezuela, and Cuba.
Cuba, as we know, is not that far away from the U.S.-Texas-Mexican border,
which is another bastion of wild drug-trafficking and now potential terrorism.
Other elements of cooperation between Venezuela and Iran involve
operations between an Iranian bank inside Venezuela called el Banco
Internacional de Desarollo and a Venezuelan affiliate as well as many other
Venezuelan banks including BANESCO that also owns banks in Panama and
Florida. This money could be helping Iran, drug traffickers and other dubious
groups not only in its operations in Latin America but constitute a very good
device to avoid the international sanctions Iran currently faces. In addition,
it has been suggested by some analysts that the money Iran generates from
its Venezuelan "businesses" is used to finance Hamas and Hezbollah.
Thus, the transport of weapons to Iran with the help of direct "commercial
flights" from Venezuela is part of the assistance that Venezuela provides and
which is motivated by cooperation between the two countries. As we have
repeatedly said, this is not merely a marriage of convenience. It involves a
strong ideological affinity. As Japan, Italy and Germany were natural allies
during WWII; Chavez's Venezuela is part of an axis with Iran which is joined
by Nicaragua, Bolivia and Ecuador. A case in point is Chavez's recent
expulsion of the Israeli Ambassador from Venezuela and his very strong
endorsement of Hamas.
To conclude, the report published in La Stampa about the flights confirms
evidence of a situation imagined beforehand. Such imagination is not the
result of the wilderness of the mind but the outcome of systematically

following the discourse, ideology and development of Chavez's regime and

behavior. Therefore all the evidence we have so far plus the knowledge
gathered as a result of years of study and observation of the ways Chavez
operates is enough to raise a red flag that US intelligence and security
agencies cannot afford to disregard.
Dr. Luis Fleischman is a senior advisor to the Menges Hemispheric Security
Project at the Center for Security Policy in Washington DC. He is also an
adjunct professor of Political Science and Sociology at Wilkes Honor College
at Florida Atlantic University.
To read the full Americas Report (PDF), kindly open the attachment.

Other News:

Iran-ALBA seminar held in Tehran.

Morales says Bolivia to launch state newspaper with Venezuelan and
Iranian backing. Venezuela's Pdvsa interested in buying Bolivian media
outlets.

Chile 's presidential election has two main candidates. Insulza Pulls
Out of Chilean Presidential Race.

Cuban President Offers Direct Talks with Obama . Raul Castro marks
Cuban revolution. Cuba's Raul Castro scheduled to visit Uruguay this
year.

Ecuadorian President Visits Cuba. Correa Stresses Ecuador Ties with

Russia, China, Iran.

Gunmen Attack TV Station in Mexico.

His US sentence served, Noriega fights extradition. Panama's Torrijos

Visits Cuba.

Shining Path Kills Peruvian Soldier, Wounds 2 Others.

Uruguay, Peru, Brazil best performing economies.

Turkey holds suspicious Iran-Venezuela shipment. NEWS ALERT:

Venezuela expels Israeli ambassador over Gaza bombing . Israel mulls
over expulsion of Venezuelan ambassador. Chavez promises low oil
prices will not stop the revolution. Shortage exposes flaws of state-

owned agro-industrial sector. Failure to include reelection for everyone

was a "mistake," says Chvez
http://www.centerforsecuritypolicy.org/p17840.xml?genre_id=5

Venezuela-Iran pact: Airplanes for Weapons

The Americas Report | Dec 22, 2008

From La Stampa:
Hugo Chavez is helping Tehran evade UN sanctions by exploiting the Venezuelan airlines under
an agreement with Mahmud Ahmadinejad, to strengthen the Iranian penetration in Latin
America.
The news is contained in some western intelligence memorandum on the impact of
Ahmadinejads agreements with several South American nations. The pact between Tehran and
Caracas, according to the memorandum, states that Chavez is allowing Ahmadinejad to freely
use its airliners and obtain military aid in exchange. Iran is using the company Conviasas
airplanes along the commercial Tehran-Damascus-Caracas route for multiple purposes. First, to
transfer scientific equipment to Syrias laboratories, the Center for Studies and Research in
Damascus. In particular, it would be the Centers shipments of machinery, computers for control
of missiles and equipment for the development of aircraft carriers, beginning with the building of
the engines.
Shipments are made by the industrial group Shahid Baker (SBIG), which in December 2006
was included in the list of sanctioned companies based on UN Security Council Resolution 1737,
because of the it role played in developing Irans missile program. Under that resolution Syria like any other country - could not make purchases of missile technology from that company, but
using the airline Conviasa allows you to carry out transactions evading controls.
Intelligence suggests that Tehran may have found, thanks to the Caracas Air secured transport, a
system by which to overcome the problems encountered as a result of the increasingly more
stringent controls implemented by the Turkish authorities on the export of prohibited material. A
few months ago, the customs services of Ankara intercepted 22 units of this Center for Studies
and Research machines manufactured by the Chinese Shenyang Machine Tool company and
intended partly for Iran, after they continued into Syria. It was after this episode that
Ahmadinejad offered to help Chavez, partly because relations with Ankara had already cracked
following the railway incident in May 2007 when a train from Iran and Syria derailed in Turkish

territory, leading to the discovery of a shipment of arms destined for Hezbollah. This sparked
strong irritation in Turkey and, among other things, led the Iranian authorities to replace the
commander of the Pasdaran Rahim Safavi with the successor Muhamed Jaaferi.
Forced to find new ways to reach the territory of Damascus, Ahmadinejad thought that
Venezuelan aircraft were the most simple and handy, Chavez has proved compliant, and in return
received a substantial aid package: Iranian commitment to send instructors to Caracas for the
secret police and intelligence services as witnessed by the recent arrival in the South American
country of at least ten senior official of the Al Quds Force of the Pasdaran. For Chavez the
Iranian trainers are a useful tool to permit its security forces to be more effective against
domestic opponents. Another element of the Tehran-Caracas pact is the availability of Conviasa
Airlines in Iran to carry military equipment that companies linked to the Pasdaran can not buy
freely on the market precisely because of UN sanctions.
The proliferation of these signals has led Western intelligence to closely monitor passengers and
equipment traveling along the Tehran-Damascus-Caracas route, coming to the conclusion that it
is often intelligence officials, military officers and materials banned by the UN. Among the
passengers on those flights were also Syrian and Venezuelan officers who last July took part in
the maneuvers of the Pasdaran. Yesterday in Teheran Vice-President Parviz Davoudi spoke on
the priority of promoting trade and industrial cooperation with the revolutionary nations,
validating the strategic decision to break the international isolation by focusing on the TehranSouth America ties. Last Thursday the opening of the trade fair of the seven countries of the
Bolivarian Alternative for the Americas (Venezuela, Cuba, Ecuador, Bolivia, Honduras,
Nicaragua and Dominican Republic) in Tehran challenged the sanctions imposed on Tehran
against the developing of nuclear energy.
More information here:
Venezuela-Iran pact: Airplanes in Exchange for Weapons
http://www.centerforsecuritypolicy.org/p17821.xml?genre_id=5

Iran Uses Venezuelan Airline to Evade Sanctions and

Transfer Weapons
21 December, 2008 - " ' "

La Stampa (Italy) 21 December 2008 - Google

translation
Venezuela-Iran pact: Airplanes in Exchange
for Weapons
Western intelligence report: Hugo Chavez thus
helps Ahmadinejad Tehran evade UN sanctions
by exploiting the Venezuelan airlines under an
agreement between Mahmud Ahmadinejad and
Hugo Chavez, to strengthen the Iranian
penetration in Latin America.
The news is contained in some western
intelligence memorandum on the impact of
Ahmadinejads agreements with several South American nations.
The pact between Tehran and Caracas, according to the memorandum that The Press has been
able to consult, concerns an exchange: Chavez allows Ahmadinejad to freely use its airliners and
obtain military aid in exchange.
Iran is using the company Conviasas airplanes along the commercial Tehran-Damascus-Caracas
route for multiple purposes.
First, to transfer scientific equipment to Syrias laboratories, the Center for Studies and
Research in Damascus.
In particular, it would be the Centers shipments of machinery, computers for control of missiles
and equipment for the development of aircraft carriers, beginning with the building of the
engines.
Shipments are made by the industrial group Shahid Baker (SBIG), which in December
2006 was included in the list of sanctioned companies based on UN Security Council Resolution
1737, because of the it role played in developing Irans missile program.
Under that resolution Syria - like any other country - could not make purchases of missile
technology from that company, but using the airline Conviasa allows you to carry out
transactions evading controls.

The previous shipments to Syria worry the West because intelligence suggests that Tehran may
have found, thanks to the Caracas Air secured transport, a system by which to overcome the
problems encountered as a result of the increasingly more stringent controls implemented by the
Turkish authorities on the export of prohibited material.
A few months ago, the customs services of Ankara intercepted 22 units of these Center for
Studies and Research machines manufactured by the Chinese Shenyang Machine Tool
company and intended partly for Iran, after they continued into Syria.
It was after this episode that Ahmadinejad offered to help Chavez, partly because relations with
Ankara had already cracked following the railway incident in May 2007 when a train from Iran
and Syria derailed in Turkish territory, leading to the discovery of a shipment of arms destined
for Hezbollah. This sparked strong irritation in Turkey and, among other things, led the Iranian
authorities to replace the commander of the Pasdaran Rahim Safavi with the successor Muhamed
Jaaferi.
Forced to find new ways to reach the territory of Damascus, Ahmadinejad thought that
Venezuelan aircraft were the most simple and handy, Chavez has proved compliant, and in return
received a substantial aid package: Iranian commitment to send instructors to Caracas for the
secret police and intelligence services as witnessed by the recent arrival in the South American
country of at least ten senior official of the Al Quds Force of the Pasdaran.
For Chavez the Iranian trainers are a useful tool to permit its security forces to be more effective
against domestic opponents.
Another element of the Tehran-Caracas pact is the availability of Conviasa Airlines in Iran to
carry military equipment that companies linked to the Pasdaran can not buy freely on the market
precisely because of UN sanctions.
The proliferation of these signals has led Western intelligence to closely monitor passengers and
equipment traveling along the Tehran-Damascus-Caracas route, coming to the conclusion that it
is often intelligence officials, military officers and materials banned by the UN.
Among the passengers on those flights were also Syrian and Venezuelan officers who last July
took part in the maneuvers of the Pasdaran.
Yesterday in Teheran Vice-President Parviz Davoudi spoke on the priority of promoting trade
and industrial cooperation with the revolutionary nations, validating the strategic decision to
break the international isolation by focusing on the Tehran-South America ties.
Last Thursday the opening of the trade fair of the seven countries of the Bolivarian Alternative
for the Americas (Venezuela, Cuba, Ecuador, Bolivia, Honduras, Nicaragua and Dominican
Republic) in Tehran, challenged the sanctions imposed on Tehran against the developing of
nuclear energy.

http://einshalom.com/archives/1273

Iran says it sent own satellite into orbit

http://news.yahoo.com/s/ap/20090203/ap_on_re_mi_ea/ml_iran_space
TEHRAN, Iran Iran has successfully sent its first domestically made satellite into orbit,
the country's president announced Tuesday, claiming a significant step in an ambitious
space program that has worried many international observers.
The satellite, called Omid, or hope in Farsi, was launched late Monday after President
Mahmoud Ahmadinejad gave the order to proceed, according to a report on state radio.
State television showed footage of what it said was the nighttime liftoff of the rocket
carrying the satellite at an unidentified location in Iran.
In Washington, a senior U.S. defense official said the U.S. military detected the launch
of a missile into space. But it was not confirmed whether the missile was carrying a
satellite, said the official, who spoke on condition of anonymity in order to speak about
the intelligence.
French officials in Paris also confirmed that a launch took place but declined to say
where they received the information. France was "worried that there is ... the
development capabilities that can be used in the ballistic framework," said French
Foreign Ministry spokesman Eric Chevallier.
Iran has long held the goal of developing a space program, generating unease among
world leaders already concerned about its nuclear and ballistic missile programs. One of
the worries associated with Iran's fledgling space program is that the same technology
used to put satellites into space can also be used to deliver warheads.
The United States and some of its allies suspect Iran is pursuing a covert nuclear
program. Iran denies the charge, saying its atomic work is only for peaceful purposes
such as power generation.
The announcement of Omid's launch comes during festivities marking the 30th
anniversary of the 1979 Islamic revolution that toppled the U.S.-backed shah and
brought hard-line clerics to power. State TV said the satellite was launched "for the
great celebration of the Iranian nation and the 30th anniversary of the victory of the
revolution."
Ahmadinejad said Tuesday that the satellite, which he said had telecommunications
capabilities, had reached its orbit and had made contact with ground stations, though
not all of its functions were active yet. The launch was intended to be a message of
peace and friendship to the world, Ahmadinejad told state television. "We need science
for friendship, brotherhood and justice," he said.

The announcement of Omid's launch also came as officials from the U.S., Russia,
Britain, France, Germany and China were set to meet Wednesday near Frankfurt to talk
about Iran's nuclear program.
The group has offered Iran a package of incentives if it suspends uranium enrichment
and enters into talks on its nuclear program. The U.N. Security Council has imposed
sanctions to pressure Iran to comply.
Iranian television said the satellite would orbit at an altitude of between about 155 and
250 miles. It was taken into orbit by a Safir-2, or ambassador-2, rocket, which was first
tested in August and has a range of 155 miles.
The radio report said the satellite is designed to circle the earth 15 times during a 24hour period and send reports to the space center in Iran. It has two frequency bands
and eight antennas for transmitting data.
Ahmadinejad said Iran has achieved the ability to launch satellites into orbit and would
now seek to increase the ability of its satellite-carrier rockets to carry more weight.
Despite the anxiety by the U.S. and its allies over Iran's space program, it is not exactly
clear how developed it is.
In 2005, Iran launched its first commercial satellite on a Russian rocket in a joint project
with Moscow, which appears to be the main partner in transferring space technology to
Iran. Also in 2005, the government said it had allocated $500 million for space projects
in the next five years.
Iranian officials first started developing the satellite, which weighs 60 pounds, in 2006.
Iran has said it wants to put its own satellites into orbit to monitor natural disasters in the
earthquake-prone nation and improve its telecommunications. Iranian officials also point
to America's use of satellites to monitor Afghanistan and Iraq and say they need similar
abilities for their security.
Iran hopes to launch three more satellites by 2010, the government has said.
_____
Associated Press writers Pauline Jelinek in Washington and Angela Charlton in Paris
contributed to this report.

CHAPTER 2
FLEECED Sunstar Commentary On Dick Morriss 21st
Century Revolutionary Revelations Of The Democratic
Partys Fleecing Of Americans

FLEECED EXCERPTS
FACT: Bill Clinton is a partner in a global investment fund
with the emir of DUBAI, one of the United Arab Emirates
(UAE) states. His recently released tax returns suggest that
his income from involvement with the fund could be as much
as $15 million.
FACT: Under our very noses, foreign companies like:
1. Shell
2. Repsol
3. Siemens
4. Hyundai
5. BNP Paribus
And others are helping Irans repressive regime stay in
power, even though it is developing nuclear weapons. And
its our state pension funds that invest in these companies,
enabling them to come to the Ayatollahs aid.

FACT: Credit card companies made $30 billion in profits last

year by charing interest rates that would make Mafia loan
sharks blush. And they collect a hidden fee of 2 percent on
virtually everything sold in the nationa fee thats then
folded into the cost of almost everything we buy.
FACT: One third of all cardholders pay interest rates above
20 percent, and late fees and other penalties have tripled in
the last ten years.
FACT: Hedge fund billionaireslike George Sorosmake
astronomical incomes each year and pay only the lower
capital gains tax rate on their income. Hedge fund
employees pay less in Federal Taxes than other Americans:
on average, they pay only 15 percent of their income in
taxes, while other Americans pay up to 35 percent. And its
the Democratsyes, THE DEMOCRATS!who are protecting
them.
FACT: EADS (European Aeronautics Defense and Space), the
French company that owns Airbus, recently won a huge U.S.
defense contract, beating out Boeing and costing Americans
tens of thousands of defense jobs. So now our tax money is
going to create their jobs.
FACT: Lobbyists and lobbying firms close to the presidential
campaigns of Hillary Clinton and John McCain were paid
millions of dollars to lobby for EADS and to use their
influence to steer the contract away from the American
company.

FACT: Each year, FOREIGN GOVERNMENTS, including

Venezuelan president Hugo Chavez, spend millions of dollars
lobbying our Congress and trying to persuade the American
public of the validity of their often troublesome positions.

FACT: While record numbers of homeowners were forced

into foreclosure, Angelo Mozilo, the former CEO of
Countrywide Financial Corporationone of the largest
providers of subprime home mortgageswas paid $100
million in 2006. When he was forced out in 2008, he left with
a pension and retirement package estimated at more than
$60 million.
FACT: Countrywide announced a $1.2 billion loss in the third
quarter of 2007 and another $422 million in the fourth
quarter. By the end of the year, the price of the companys
stock fell by 80 percent. During the same time, Mozilo
received a $1.9 million annual salary and $20 million in
stock awards and sold $121 million in stock. He told
Congress that his shares had grown in value by 23,000
percent.
FACT: Countrywide subprime loans for 120,000 homes were
in foreclosure at the end of 2007, and the company laid off
12,000 workers.
FACT: The FBI is investigating Countrywide for alleged
securities fraud for misrepresenting its financial position
and the performance of mortgage loans in securities filings.

FACT: Hillary Clinton says the United States should retaliate

against Iran if it attacks the UAE, Kuwait, or Saudi Arabia.
No other president, presidential candidate, or senator has
ever suggested that we go to war under these
circumstances.
Is it any wonder that Americans feel FLEECED at every turn?
[PAGE 7]
Theres been a marked increase in foreign bailouts of
American banks and companies. When CITIBANK ran into
trouble, the ABU DHABI INVESTMENT AUTHORITYa
Sovereign wealth fund with assets estimated to be as high
as $875 billionjumped in and invested $7.5 billion in
Citigroup. And one of Abu Dhabis smaller funds, Mubadala
Development Company, recently bought stakes in the
Carlyle Group and Advanced Micro Devices.
Abu Dhabi is the capital of the UAE, the oil-rich country that
includes seven states, including Dubai.
Dubai is everywhere. In recent years, Dubai-based firms
have bought:
2. Barneys, the upscale clothing store
3. The Essex House Hotel (now the Jumeirah Essex
House) in New York City
4. The Travelodge Hotel Chain
5. Loehmanns, the discount womans clothing store

6. Madame Tussauds, the legendary wax museum

7. Daimler-Chrysler, state of Dubai has a stake
8. MGM Mirage Hotel and Casino In Las Vegas, state of
Dubai has a stake.
9. Doncasters Group, a British engineering firm, through
its purchase, Dubai now owns several plants in the
United States that produce military equipment
10.

Airbus, the state of Dubai has a stake of Airbus,

the recent winner of a huge Pentagon contract.

11.

HSBC, state of Dubai has invested in HSBC, one of

the major banks hit hard by the subprime mortgage

crisis.
12.

NASDAQ Senator Charles Schumer of New York

articulated his concern about Dubais purchase of a 20

percent stake in Nasdaq: While I am and have been a
big proponent of foreign investment in the United
States, we must still be careful of the kinds of
investments made in our critical infrastructure,
financial exchanges, utilities and other areas that are
vital to the operation and security of our country. Hes
RIGHT about that! Dubai has some prominent
advocates in the United States. Former president Bill
Clinton is a partner with SHEIK MOHAMMED BIN
RASHID AL-MAKTOUM, the emire of Dubai, and the
investor Ron Burkle of the Yucaipa Copmanies in a
global investment fund. As the spouse of a U.S. Senator

and presidential candidate, should Clinton be in

business with a foreign leader? Regardless of how the
Clintons characterize the arrangement, it appears that
Clinton is a partner in a sovereign wealth funda fund
holding a foreign states moneyWhen Mrs. Clinton
finally released her tax returns in April 2008, they
showed that the former president was paid more than
$15 million for his consulting with Yucaipa. The
Clintons didnt disclose how much came from this highly
unorthodox arrangement with the ruler of Dubai. Nor
did they say what Bill Clinton did for the millions.
Shouldnt we make sure that these widespread foreign
investmentsespecially oil-rich companiescannot be
used for political purposes or endanger our national
security before we permit the massive infusion of
foreign capital into our system?
[PAGE 9]
Dubais lobbyists are among the most aggressive in the
world. The country has hired firms close to the Clintons
such as Glover Park Group, where Hillary Clintons
campaign spokesman, Howard Wolfson, is a partner. And
Burson-Martsteller, headed by Clintons recently demoted
top strategist, Mark Penn, represents both Dubai and Abu
Dhabi; its sister company, Quinn Gillespie & Associates,
and also represents Dubais interests. The Quinn of the
firm is the former Clinton White House Counsel Jack
Quinn, who successfully lobbied President Clinton to

pardon the fugitive financier Mark Rich. Its one big cozy
circle.
In 2006, Dubais deputy ruler, Sheikh Hamdan bin Rashid
al-Maktoum, was sued in a U.S. federal district court in
Miami for allegedly encouraging the enslavement of
thousands of underage boys to work as jockeys in his
native country. The sheikh responded by hiring a
prominent D.C. lobbying/law firm to convince the Justice
Department to intervene. The suit was eventually
dismissed. Nice job by the lobbyists. Too bad for the kids.
This raises an important question: Why do we permit
foreign agents to influence our government? Why, for
example, should we permit the Venezuelan dictator Hugo
Chavez and the leaders of other oppressive regimes to
propagandize in the United States? They have no
constitutional right to free speech in the United States.
The agendas of the lobbyists for foreign countries are
often at odds with the needs of American workers and
companies, and they take up valuable official government
time in their efforts to convince public officials to grant
their wishes. Lets keep them out of our governments
business.
At least 146 foreign countries have hired lobbyists in
Washington to represent their interests before Congress,
the State Department, the U.S. trade representative, the
foreign aid program, the Defense Department, and the

White House. These countries include some of our most

dubious FRIENDS:
1. China
2. Russia
3. Libya
4. Saudi Arabia
They include some of the most egregious violators of
human rights, as cited by our own State Department. Yet
theyve been able to hire former cabinet and subcabinet
officials, as well as former senators and congressmen, to
plead their case at the highest levelslevels most of us
can never reach to express our opinions. They hear the
voices of the foreign agents, not the American publicand
it shows in our countrys policies.
If we want to avoid being FLEECED in the next
administration, we need our voices to be heard in November,
because one thing is certain: the next election will lead to a
big difference in our national policies. Its time to make
other public officials understand that well no longer be
fleeced.
In our last book, OUTRAGE, we identified a series of policies
and events that enraged Americans. Those rip-offs were bad
news, to be surebut they werent part of a large pattern
with international repercussions. In contrast, many of the
shenanigans we address in this book are threatening to send

the world into economic chaosa crisis that could be as bad

as the one Osama bin Laden triggered in 2001.
Consider the new paradigm that has developed in our capital
markets: banks are begging sheikhs for money. Investment
banking houses are failing and being bought up for peanuts
with the help of foreign investors. And the real estate
market is writhing in pain and dragging down the entire
economy. Its a mess.
What caused this CATASTROPHE? Not a war. Not even a
terror attack. It was triggered by greed-simple, self-serving
greedwhich led the very, very rich to try to get even richer
by manipulating the credit markets, government guarantees,
and gullible consumers in the biggest mortgage scam in
history.
[PAGE 11]
Hedge fund managers are among the richest people in our
country. George Soros made more than $3 billion last year.
The hedge fund managers defend their salaries by pointing
to the risks they took, the smart investments they made,
and how hard they worked. But, even so, their income is
taxed at only 15 percent because they dress up their
earnings as capital gains, while everyone else has to pay up
to 35 percent in taxes. Why didnt the Democratic Congress
that swept into office in 2006 put a halt to it? Because the
Democrats wont close the loophole. They say its because
hedge funds are an important New York industry. But we

suspect that its really because the party receives two-thirds

of all campaign contributions that come from hedge fund
managers.
John McCain is famous for attacking lobbyists and their
influence peddling, yet he takes their money. Hillary Clinton
greedily grabs every lobbyist campaign contribution she
can. But the two candidates have something else in
common: both have close advisers, at the very top of their
campaigns, who are tied---directly or indirectlyto lobbying
firms for EADS, the European company that owns the
aviation giant AIRBUS. AIRBUS recently sought funds from
the U.S. Department of Defenseyes, thats rightAmerican
tax moneyto build new tanker aircraft. The contract it
was after was worth at least $140 billion and potentially up
to $100 billionand the U.S. firm Boeing and the state of
Washington had been counting on that contract. But the rug
was pulled out from under them by the lobbying firms that
helped to secure the contract for Airbusthe same firms
that are connected with Clintons and McCains campaign
advisers.
And what of the young men and women who risk their lives
to capture or kill terrorists before they can strike us? The
heroism of these young men and women has led to the
capture of 765 terrorists who have been sent to
Guantanamo Naval Base to be locked up until the war on
terror is over. But courts, liberal lawyers, and a COWED
administration have released 425 of these anti-American

militants. And now were having to go out and recapture

many of themor kill thembecause, thanks to our
leniency, theyre back in the field fighting us again!
So FLEECED is dedicated to finding the culprits, exposing
their deeds, and crafting remedies. As with OUTRAGE, we
do so with the realization that knowledge can empower
citizens to force change. When the lights come on, the
cockroaches scurry for cover. Read this book and get out
the roach spray!

[PAGE 103]
Iranian President Mahmoud Ahmadinejad has boasted
publicly and frequently of his plan to wipe Israel off the map.
And once he acquires delivery systems to go with his
bombs, he will undoubtedly come gunning for us.
[PAGE 104]
Most people realize that the sanctions imposed by the
United Nations are only slaps on the wrist, unlikely to deter
the fanatics in Tehran. But today some of the most
prestigious publicly traded companies in the world are
supplying the Iranian regime with the resources it needs to
stay in powerand, in some cases, even directly subsidizing
its efforts to acquire nuclear weapons! And we are enabling
these companies to subsidize Iran by buying their stock
through our mutual funds, 401 (k)s, and individual portfolios,
even our state pension funds..

So here is a list of the dirty dozenthe twelve worst

offenders when it comes to trading with Iranall of them
publicly traded companies that do business with Iranas
identified by an important group called:
www.divestterror.org, headed by Frank Gaffney, Jr., formerly
an official in Ronald Reagans Pentagon.
www.divestterror.org is devoted to exposing investments of
foreign owned companies in nations that sponsor terrorism.
[PAGE 105]
THE DIRTY DOZEN
Companies That Do Business With Iran
Alcatel-Lucent Technologies
BNP Paribas
ENI
Hyundai
Lundin Petroleum
Oil & Natural Gas Corporation
Royal Dutch Shell
Siemens
Sinopec
Statoil
Stolt Nielsen

Some of these companies invest overtly in elements of the

Iranian military. Others simply help the nations energy
economy or infrastructure. Both policies contribute to the
potential threat that Iran poses to our national security.
The only way to stop Iran from developing the bomb is to
squeeze it economically. Iran is very vulnerable to
economic pressure: its government derives 85 percent of its
revenues from the energy sector, but the countrys oil
exports have dropped year after year as domestic demand
has risen by 10 percent annually and production has lagged.
If we all sell our stock in companies that do business with
terror-sponsoring nations, the CEOs and boards of directors
of these companies will see the value of their portfolios
crashand, most likely, their own pay envelopes, since
personal compensation and bonus provisions these CEOs
enjoy are usually based on stock prices.As Frank Gaffney
explains, the FTSE Group, a leading global investment index,
is now providing the worlds first series of terror-free
screened indexes. Now it will be possible for investors,
sophisticated and novice alike, to put their money into
profitable companies ensuring a good rate of return that do
not invest in companies that help Iran and the other terrorsponsoring nations.

HOW THE DIRTY DOZEN KEEP IRAN AFLOAT

Alcatel-Lucent
An $11.8 billion 2006 merger of Alcatel SA and Lucent
Technologies, this company now operates a multi-million
dollar contract with Iran to provide a fully integrated
communication system at the South Paris gas fields.
Irans Asre Danesh Afzar signed a deal with Alcatel for the
installation of high-speed internet connectivity in Iran.
In March 2007, the East Africa Submarine Cable System
consortium awarded Alcatel-Lucent a U.S. $240 million
turnkey project to lay on optical submarine cable network
landing.
IRANIAN PRESIDENT SMILES FOR THE MEDIA CAMERAS AT
COLUMBIA UNIVERSITY!

BNP PARIBAS
In March 2005, Iran Petrochemical Commercial Company
signed a five-year U.S. $1 billion secured loan through a
consortium of mandated lead arrangers, including BNP
Paribas. The loan was the largets pre-export financing loan
to date.
In July 2002, BNP Paribas, along with Commerzbank AG,
launched the first Iranian Eurobond since the beginning of
the Islamic Revolution in 1979. Despite U.S. sanctions, the
$497.1 million offering was oversubscribed by at least 20
percent.

ENI SPA
ENI SPA is working on a number of different oil and gas
development projects. The companys website reports that
ENIs quota of the production of oil and condensates in Iran
was 35,000 barrels per day in 2005.
ENI operates out of three offices in Tehran: Saipem SPA
Iran, Snamprogetti, and ENI IRAN BV. The latter handles
exploration and production while the first two manage all
oilfield services, construction, and engineering projects.
ENI and it subsidiaries have interests in the Darkhovin and
Balal oilfields, and in 2007, submitted a bid for Phases 19
through 21 of the South Pars gas field. Also, a Saipem-led
consortium entered into talks with the National Iranian Oil

Refining & Distribution Company to build a refinery at

Bandar Abbas. In addition, ENI is reportedly a term lifter
of oil from Syria.

HYUNDAI
The Hyundai Group has Iran contracts including
shipbuilding, machinery, steel, chemicals, and home
appliances for some U.S. $1.9 billion.
Hyundai Heavy Industries (HHI) will deliver 39 ships, worth a
total of U.S. $1.7 billion, to the Islamic Republic of Iran
Shipping Lines in the second half of 2008.
Hyundai Motor Corp. won a U.S. $227 million order from Iran
to supply completed vehicles to the countrys government
agencies and taxi operators.

OIL & NATURAL GAS CORPORATION

ONGC Videsh has a 100 percent participating interest in the
Jufeyr project and a 10 percent interest in the Yadavaran
field.
In November of 2006 ONGC Videsh found oil in Irans Farsi
exploration block and continues to test the discovery.
The ONGC Group includes Himalya Energy (Syria) B.V. ONGC
Videsh holds a U.S. $2.7 billion stake in Syrias Sakhalin-I oil
field. It is officially producing crude oil as of January 2007.

ROYAL DUTCH SHELL

Shells Tehran offices arranged a tentative liquefied natural
gas (LNG) plant deal worth U.S. $10 billion. The deal, which
will not come into effect until the final investment decision
is made in 2008, was signed along with Spains Repsol. In
October 2007, Shell CFO Peter Voser attributed delays in the
project to technical and economic aspects, but also stated
that the company would have to consider political issues in
continuing to pursue this South Pars LNG deal.
Shell is also in partnership with Irans Oil Industries
Engineering Company and Japans JJI, which jointly finished
developing the Soroush and Nowruz fields in Iran, totaling
U.S. $1.45 billion.
Syria Shell Petroleum Development BV is headquartered in
Damascus, and represent Shell as the majority owner of Al
Furat Production Company, Syrias largest oil company.

SIEMENS AG
Siemens AG has a number of Iranian subsidiaries:
1. Demag Delaval Desoil Services Qeshm
2. Sherkate Tarhaye Siemens, Tehran
3. Siemens Sherkate Sahami (Kass)
4. Iranian Lamps Ltd.

5. Iranian Telecommunications Manufacturing Company

6. Shiraz
7. ITS Tehran
8. OSRAM Iran Ltd., Tehran
SIEMENS also has offices in Damascus, Syria. The
company is under investigation for a series of suspicious
transactions in which the groups general manager in
Damascus allegedly received 72 million euros between
1999 and 2006. Siemens has a global purchasing contract
with Egypts Orascom Telecom for construction of GSM
(Global System for Mobile Communication) wireless
systems. Orascom has a license to provide wireless
telecom to 750,000 subscribers in Syria.

SINOPEC
China Petroleum & Chemical Corporation (Sinopec)
operates in all stages of the crude oil discovery,
extraction and refining process.
Sinopec will pay Iran some U.S. $100 billion during 25
years for oil and gas supplies and for a 51 percent stake in
the Yadavaran oil project.
[PAGE 111]
In addition to these interests, many of these companies
have stakes in other terror-sponsoring states. Lundin

Petroleum, Oil & Natural Gas Corporation, Royal Dutch/Shell,

Siemens, Stolt Nielsen, and TOTAL all do business in Sudan,
thereby aiding the genocide now in progress. And Hyundai
does extensive business in North Korea. These companies
are hardly the only ones that help terror-sponsoring
countries. Divestterror.org has identified 485 such
companies but lists only these twelve publicly.
[PAGE 112]
A report by the Conflict Securities Advisory Group (CSAG)
found that, on average, between 15 and 23 percent of the
assets of state pension funds in the United States involved
companies doing business with countries on the State
Departments list of state sponsors of terror. Then, the
value of these holdings was estimated to be roughly $188
billion, with more than $70 billion actually associated with
activities in Iran, Syria, North Korea, and other safe-havens
for terror.
CALIFORNIA: Governor Arnold Schwarzneggar [SUNSTARS
LAST ACTION TERMINATOR HERO!] signed into law a bill
initiated by freshman Republican Assemblyman Joel
Anderson ordering CALPERS and CALSTERS, two of the
nations largest pension funds, to divest tens of billions of
dollars worth of investments in companies doing business
with Iran.
The Governator said, I couldnt be more proud to sign
this bill. Last year I signed legislation to show our defiance

against the inhumane murder and genocide in Sudan. This

year I am pleased to support additional efforts to further
prevent terrorism by doing whats right with our investment
portfolio and signing this legislation to divest from Iran.
Florida: Republican Governor Charlie Crist signed legislation
forcing disinvestment.
New Jersey: Passed legislation to require disinvestment.
Louisiana: Has not only disinvested but authorized its state
treasurer to develop a terror-free investment vehicle that
individuals around the country can use for their own
portfolios.
New York City: City Comptroller William Thompson used his
power over pension fund investments to press companies to
disinvest in Iran. He reports, My office has forced a number
of U.S. companies to cease doing business, through their
foreign subsidiaries, in Iran[we have] prompted:
1. HALLIBURTON
2. AON CORPORATION
3. COOPER CAMERON
4. CONOCO PHILIPS
5. FOSTER WHEELER
6. GENERAL ELECTRIC
To not only assess their financial and reputational risks
posed by their business ties to Iran, but to commit to
ceasing those activities.
[PAGE 114]

WORLD BANK LOANS TO LOAN

A project to improve access to health care for rural
Iranians
Improvements to Teherans sewage system
An air and water quality monitoring project
Total cost: $870 million
Though these may be worthy projects in another country, to
give the money to Iran at the same time that the United
Nations is voting sanctions to force it comply with its
resolutions on the development of nuclear weapons is a
travestyThink of the embarrassment if the UN Security
Council approves three separate sanctions and the United
States imposes its own unilateral sanctions and three
blocks away the World Bank cuts a check to the
Ahmadinejad government.

[PAGE 118] THE NEW LOBBYISTS:

PEDDLING THE AGENDAS OF FOREIGN GOVERNMENTS,
OPPRESSIVE DICTATORS, AND FOREIGN CORPORATIONS TO
THE U.S. GOVERNMENT AND THE AMERICAN PUBLIC
1. SAUDI ARABIA
2. LIBYA
3. IRAQ
4. IRAN
5. DUBAI
6. QATAR
7. ABU DHABI
8. VENEZUELA
9. SUDAN
10.
CHINA
11.
AZERBAIJAN
12.
TAIWAN
13.
UNITED ARAB EMIRATES
14.
PAKISTAN
15.
ISRAEL
16.
TURKEY
17.
PALESTINE
Has it ever seemed to you that Americas political leaders
are sometimes ignoring our national interests? If so, heres
one possible reason for it: There are THOUSANDS OF:
1. LOBBYISTS
2. LAWYERS
3. PR FIRMS

4. POLITICAL CONSULTANTS
In Washington D.C., who are getting paid fat sums to push
the agendas of foreign governmentsoften in direct
opposition to what is best for the United States and the
American people. Under such pressure, our politicians too
often march to the beat of a different drummerand its
foreign governments, through their lobbyists, who are
calling the tune.
Lobbying for foreign entities has become a huge business for
lobbying firms in Washingtontheres now a growing and
lucrative niche peddling the agendas of foreign countries,
private foreign corporations, and even exiled former foreign
leaders seeking to return to power. More and more, these
wealthy foreign interests are trying to influence our federal
laws, policies, and budgetary choices to serve their
interests. And the lobbyists are collecting millions in fees
each year to do their bidding.
In 2006 and 2007, more than 146 foreign entities retained
Americans to act as their agents in Washingtonincluding
some nations that are overtly hostile to the United States
and have been cited for human rights violations by the State
Department. In these past two years, for example, IRAN,
LIBYA, SUDAN, Cote dIvoire, the Palestinian Authority, and
Hugo Chavezs Venezuelahuman rights violaters allhave
hired Americans to deliver their propaganda.

Even when the United States has no diplomatic relationship

with a particular country, that doesnt stop any foreign
government from bypassing the State Department and
taking its case right to our lawmakers to get what it wants.
Countries such as Saudi Arabia and Dubaitwo more
nations cited as human rights violators by the State
Department maintain an army of lobbyists to plead their
cases and improve their images in Washington, Pakistan,
Turkey, China, Abu Dhabi, Qatar, Azerbaijan, Taiwan, the
United Arab Emirates, and hundreds of other countries hire
lobbyists to try to influence U.S. government policies to
benefit them. [For a complete list of all foreign agents, go to
www.usdoj.gov/criminal/fara.)
The Foreign Agents Registration Act (FARA) was enacted in 1938.
FARA is a disclosure statute that requires persons acting as agents of
foreign principals in a political or quasi-political capacity to make
periodic public disclosure of their relationship with the foreign
principal, as well as activities, receipts and disbursements in support
of those activities. Disclosure of the required information facilitates
evaluation by the government and the American people of the
statements and activities of such persons in light of their function as
foreign agents. The FARA Registration Unit of the Counterespionage
Section (CES) in the National Security Division (NSD) is responsible for
the administration and enforcement of the Act.

Top Lobbyists - Hired Guns

By Jonathan E. Kaplan
Posted: 04/27/05 12:00 AM [ET]
In part one of our annual listing of Washington's top lobbyists, last week, The Hill
focused on trade associations and nonprofit groups. This week, in part two, we turn to
the top lobbyists for individual corporations, as well as hired guns from law firms and
public-affairs firms. Again, the list is arrived at through conversations with members of

Congress, key aides and other lobbyists. We strive to feature those names that never fail
to arise when talk turns to a given issue. We also take into consideration those lobbyists
who have enjoyed big legislative wins in the past year or have high-profile legislation
before Congress.
Lobbyists with a license to win top hired guns
Phil Anderson, DC Navigators Former assistant to Vice President Dan Quayle and GOP
operative Lee Atwater, he remains a top financial services lobbyist while managing
public relations for the firm.
Gary Andres, Dutko Worldwide A fixture at Republican Party events, Andres is now a
regular columnist for The Washington Times. He played a major role in development of
the Medicare Modernization Act in 2003.
Doyle Bartlett, Bartlett & Bendall A longtime player in the financial services area. Recent
clients include MetLife, Morgan Stanley and Countrywide Home Loans.
Michael Berman, The Duberstein Group A well-connected Democrat, his practice
includes healthcare and communications issues.
David Bockorny, Bockorny Petrizzo Inc. This former Reagan White House staffer heads
a reorganized firm of both Republican and Democratic lobbyists.
Tommy Boggs, Patton Boggs One of the trailblazers for today's lobbyists, he presides
over the firm with the highest receipts from lobbying in 2004.
Dan Boston, Health Policy Source A former GOP staffer on the House Commerce
Committee, Boston's access to staffers, administration officials and K Street insiders is
extraordinary.
Chuck Brain, Capitol Hill Strategies Brain was head of legislative affairs for the Clinton
White House and a top aide to the Ways and Means Committee. He founded his own
firm after the breakup of Bergner Bockorny Castagnetti Hawkins & Brain.
Al Cardenas, Tew Cardenas The former chairman of the Florida Republican Party has
built a lucrative office in D.C. that has grown so fast that it is moving to new offices.
Gerald Cassidy, Cassidy & Associates Founded in 1975, the house Cassidy built is among
the three largest firms on K Street.

Howard Cohen, HC Associates Inc. Cohen is regarded as the prescription drug lobbyist
in town. The former Republican House aide rubs some people the wrong way, but he
delivers.
Ray Cole, Van Scoyoc Associates Alabama native who's a former state and Washington
staffer to Senate Banking Committee Chairman Richard Shelby (R-Ala.).
Linda Daschle, Baker, Donelson, Bearman, Caldwell & Berkowitz Daschle's lobbying
prowess grows now that she is lobbying the Senate in the wake of her husband's loss in
November.
Dennis DeConcini, Parry, Romani, DeConcini & Symms A former Democratic senator
from Arizona, he's a recognized expert on budget and appropriations matters.
Frank Donatelli, McGuireWoods Consulting A longtime Republican activist, Donatelli
held positions in the Reagan White House.
Tom Downey, Downey McGrath Group After serving as a Democratic House member
from New York for 18 years and aiding the Clinton administration's transition effort, he
co-founded Downey McGrath in 1993.
Kenneth Duberstein, Duberstein Group A former chief of staff to President Reagan,
Duberstein has since become one of the most effective advocates in town. His firm's
clients include General Motors, BP America and Comcast.
Vic Fazio, Clark & Weinstock Big Pharma, eBay and Greece have all called on this
former Democratic appropriator.
Harold Ford Sr., Harold Ford & Co. Former Democratic congressman from Tennessee
and the father of rising Democratic star Rep. Harold Ford Jr. (Tenn.).
Slade Gorton, Preston Gates Ellis & Rouvelas Meeds A Republican senator from
Washington for 18 years, Gorton now may add member of the Sept. 11 commission to his
resume, adding expertise in homeland security to his background on energy,
transportation and environmental issues.
Ed Gillespie, Quinn Gillespie Fresh off a wildly successful run as chairman of the
Republican National Committee, Gillespie has returned to lobbying at a firm he cofounded with prominent Democrat Jack Quinn.

Nick Giordano, Washington Council Ernst & Young Giordano, a former Democratic
staffer on the Senate Finance Committee, has a low-key yet authoritative style that has
brought him a bevy of tax clients.
Fred Graefe, Law Offices of Frederick H. Graefe Graefe, a top Democratic lobbyist,
recently left Hunton & Williams to set up his own shop. Graefe gets a ton of healthcare
contracts.
G.O. Lanny Griffith. Barbour, Griffith and Rogers A lobbyist during Bush 41's
administration, Griffith is now the chief executive officer for this all-Republican firm,
with clients that include Pfizer and Southern Co.
Larry Harlow, Timmons & Co. Has represented big business on asbestos issues for
several years. His father, Bryce Harlow, was the first White House legislative affairs
director under President Eisenhower.
Gregg Hartley, Cassidy & Associates Hartley was lured from Rep. Roy Blunt's (R-Mo.)
office nearly two years ago to shake things up and shake it up he has, bringing in over a
dozen new lobbyists and expanding the firm's communications and media practice.
Susan Hirschmann, Williams & Jensen Rep. Tom DeLay's (R-Texas) former chief of
staff remains a close adviser to House Republican leaders.
Mark Isakowitz, Fierce, Isakowitz and Blalock This all-Republican firm boasts clients
such as the Recording Industry Association of America, MCI, the Business Roundtable
and Yahoo. When he wasn't lobbying, Isakowitz played an active role in the 2004
election, helping, for example, with planning the party's nominating convention in New
York.
Joel Jankowsky, Akin Gump Strauss Hauer and Feld A former aide to House Speaker
Carl Albert (D-Okla.), Jankowsky now heads one of the largest lobbying shops in town.
Joel Johnson, Glover Park Group Johnson joined the Glover Park Group, then a
successful Democratic lobbying firm in a predominantly GOP town, this year. He's been
involved in some of Congress's biggest controversies in 2005, including the hearings on
steroids in baseball.
Marty Kanner, Kanner & Associates This boutique shop has just three lobbyists, but is
nevertheless a major player in energy policy debates.

Ken Kies, Clark Consulting Federal Policy Group A heavy hitter in the tax arena, Kies led
several industries' lobbying efforts on FSC/ETI legislation.
Bob Livingston, The Livingston Group Being a former chairman of the House
Appropriations Committee means never having to hear I'm sorry.
Dan Mattoon, PodestaMattoon Former deputy chairman of the National Republican
Congressional Committee and former aide to Reps. Thomas Corcoran (R-Ill.) and John
Grotberg (R-Ill.), he has helped make PodestaMattoon one of the top full-service firms
in town.
Bob Michel, Hogan & Hartson His 38 years in the House as a Republican representative
from Illinois included 14 as minority leader.
George Mitchell, Piper Rudnick Former Senate Majority Leader from Maine, this
Democrat is still one of the most respected figures in Washington.
Bruce Mehlman, Mehlman Vogel Castagnetti Mehlman, a former Bush administration
official and brother of current Republican National Committee Chairman Ken Mehlman,
has attracted a number of high-profile clients with partners Alex Vogel and David
Castagnetti.
Susan Molinari, Washington Group A former Republican congresswoman from Staten
Island, N.Y., Molinari heads up a full-service Washington shop that includes the
lobbying arm of the Washington Group and the PR arm of Ketchum Public Affairs.
Loren Monroe, Barbour Griffith & Rogers Representing a diverse array of interests from
healthcare to tobacco, Monroe also raised significant funds for Republican candidates in
past years.
Bill Paxon, Akin Gump, Strauss Hauer & Feld A key member of Republican leadership
when the GOP took back the House in 1994, the former New York congressman remains
plugged in to GOP leadership circles. He is active on transportation and defense issues,
among others.
Jim Pitts, DC Navigators A major force in energy and financial services, Pitts has added
lobbying on Indian gaming to his firm's growing portfolio.
Anthony Podesta, PodestaMattoon Firm co-chairman Podesta has helped to take a small
shop, which started in 1988 with only three employees, into one of the town's top

revenue generators.
Jack Quinn, Quinn Gillespie The Democratic half of the Quinn-Gillespie team, Quinn
served as Vice President Al Gore's chief of staff and as an aide to President Clinton.
Thomas Quinn, Venable Active in Democratic politics from Sen. Edward Kennedy's (DMass.) presidential run in 1980 to Sen. John Kerry's (D-Mass.) run last year, this Rhode
Island native is a key player on financial services, taxation and homeland security issues.
Steve Ricchetti, Ricchetti Inc. A former deputy chief of staff to President Bill Clinton,
Ricchetti remains well connected in Democratic political circles. He was instrumental in
creating the Voices for Choices coalition of long-distance companies along with
Republican Charlie Black.
Aubrey Rothrock, Patton Boggs Rothrock's stock rose with each dollar he raised for
President Bush's reelection campaign. The tax lobbyist has been busy in the Bush
administration.
Emanuel Rouvelas, Preston Gates Ellis & Rouvelas Meeds The chairman of Preston
Gates's D.C. office, he's an expert on transportation and maritime issues.
Tim Rupli, Rupli and Associates Another DeLay insider, Rupli is known for his ability to
kill legislation and his prodigious fundraising power.
Tom Scully, Alston & Bird The magnitude of this former Medicare chief's connections
may only be equaled by the trouble he's courted because of his outspokenness.
Robert Walker, Wexler & Walker Public Policy Associates Wexler & Walker's chairman
has been credited with contributing to the GOP takeover of Congress in 1994.
J.C. Watts, The J.C. Watts Cos. The former House Republican Conference chairman has
reeled in a host of clients since establishing his own company.
Vin Weber, Clark & Weinstock More than 10 years in Congress have been matched by
more than 10 years of lobbying for the GOP veteran.
Anne Wexler, Wexler and Walker Public Policy Associates Almost three decades ago,
Wexler was a top policy aide in the Carter administration. Since then, she has been a
fixture on K Street.

http://thehill.com/business--lobby/top-lobbyists---hired-guns-2005-0427.html
OPEN SECRETS LOBBYING DATABASE
http://www.opensecrets.org/lobbyists/index.php
In addition to campaign contributions to elected officials and candidates, companies, labor
unions, and other organizations spend billions of dollars each year to lobby Congress and federal
agencies. Some special interests retain lobbying firms, many of them located along Washington's
legendary K Street; others have lobbyists working in-house. We've got totals spent on lobbying,
beginning in 1998, for everyone from AAI Corp. to Zurich Financial.
You can use the options below to search through our database in four ways: search by name for a
company, lobbying firm or individual lobbyist; search for the total spending by a particular
industry; search for the total spending by lobbyists on a specific issue; or view the amount spent
to lobby a particular government agency.

Total Lobbying Spending

199
8

<>

$1.44
Billion

199
9

<>

$1.44
Billion

200
0

<>

$1.54
Billion

200
1

<>

$1.63
Billion

200
2
200
3
200
4
200
5

<>

<>

<>

<>

$1.81
Billion
$2.04
Billion
$2.17
Billion
$2.41
Billion

200
6

<>

200
7

<>

200
8 >

$2.60
Billion
$2.84
Billion

< $3.24
Billion

Number of Lobbyists
199
8

10,69
3

<>

199
9

<>

13,33
6

200
0

<>

12,75
8

200
1

<>

12,07
8

200
2

<>

12,35
1

200
3

<>

13,16
7

200
4

<>

13,40
7

200
5 >

<

14,44
4

200
6 >

< 14,88
0

200
7 >

< 15,40
5

200
8 >

< 15,15
0

Feel free to distribute or cite this material, but please credit the Center for Responsive Politics.
For permission to reprint for commercial uses, such as textbooks, contact the Center.
Lobbying Firm

Total

Patton Boggs LLP

$312,212,0
00

Cassidy & Assoc

$282,725,0
00

Akin, Gump et al

$254,695,0
00

Van Scoyoc Assoc

$204,253,0
00

Williams & Jensen

$149,654,0
00

Hogan & Hartson

$136,593,9
07

Ernst & Young

$132,897,5
36

Quinn, Gillespie &

Assoc

$120,393,5
00

Barbour, Griffith &

Rogers

$114,430,0
00

PMA Group

$113,715,1
32

Greenberg Traurig
LLP

$109,228,2
49

Holland & Knight

$97,759,54
4

PriceWaterhouseCoo $93,324,08
pers
4
Verner, Liipfert et al

$88,595,00
0

Alcalde & Fay

$86,320,66

Lobbying Firm

Total
0

Carmen Group

$84,700,00
0

Dutko Worldwide

$83,286,76
6

Clark & Weinstock

$79,195,00
0

Timmons & Co

$75,818,00
0

Washington Group

$74,957,00
0

http://www.opensecrets.org/lobby/top.php?indexType=l
Contributor

Employer

Total

Rogers, Edward M Jr

BGR Holding

$59,100

Broin, Jeff

POET

$53,050

Lee, PauL

Strategic Health Care

$48,150

Peck, Jeffrey J

Johnson, Madigan et al

$46,925

D'amato, Alfonse

Park Strategies

$44,700

Mehlman, Ken

Akin, Gump et al

$43,535

Starr, David A

Williams & Jensen

$42,800

Bickwit, Leonard Jr

Miller & Chevalier

$42,450

Efford, Richard

PMA Group

$42,000

Gandy, Henry M

Duberstein Group

$41,500

http://www.opensecrets.org/lobby/agencysum.php?
lname=US+House+of+Representatives&year=a
http://www.opensecrets.org/lobby/agencysum.php?
lname=US+Senate&year=a

http://www.opensecrets.org/lobby/top.php?indexType=a
Lobbying Client

Total

US Chamber of Commerce

$461,529,6
80

American Medical Assn

$200,002,5
00

General Electric

$182,468,0
00

American Hospital Assn

$163,621,4
85

AARP

$154,692,0
64

Pharmaceutical Rsrch & Mfrs of

America

$147,253,4
00

Northrop Grumman

$127,385,2
53

Edison Electric Institute

$123,495,9
99

Business Roundtable

$120,620,0
00

National Assn of Realtors

$118,360,3
80

Blue Cross/Blue Shield

$111,193,1
72

Exxon Mobil

$111,036,9
42

Lockheed Martin

$109,471,6
41

Boeing Co

$103,748,3
10

Verizon Communications

$102,983,9
08

Lobbying Client

Total

General Motors

$99,831,48
3

Freddie Mac

$96,164,04
8

Southern Co

$94,710,69
4

Ford Motor Co

$82,569,80
8

Microsoft Corp

$82,115,00
0

http://www.opensecrets.org/lobby/top.php?indexType=s
http://www.opensecrets.org/lobby/lobby00/lobby.php

LOBBYING FIRMS &

LOBBYISTS
This chart shows the 128 lobbying firms that reported at least $1 million in income for 1999.
Some of these organizations have a handful of employees, while others are Washington outposts
of major out-of-town law, accounting, or public relations firms. Two major factors shook up the
list of the top lobbying firms. First, the collapse of tobacco spending hit some firms much harder
than others. Verner, Liipfert was heavily dependent on tobacco money in 1998; as a result, its
reported income dropped 15 percent in 1999. By contrast, Cassidy & Associates had very little
tobacco income in 1998; as a result, it maintained its strong growth in 1999.
The second factor is the rise of lobbying firms with GOP affiliations. With both houses of
Congress in Republican hands since 1994, firms that hire former GOP lawmakers or donate to
Republican congressional candidates have boomed. Since 1997, firms that gave over 60 percent
of their donations to Republicans saw their revenues increase by over 20 percent; the figure for
firms that donate 60 percent or more to Democrats was slightly less than 8 percent.
In compiling these figures, the Center counted all clients reported by each lobbying firm. Reports
stating that the lobbying firm received "less than $10,000" for a six-month period were counted
as zero. Earnings of less than $10,000 do not have to be itemized.

1999 Lobbying
Lobbyin
Receipts
g Firm

1998
Lobbying
Receipts

1997
Lobbying
Receipts

Average
Growth

Cassidy & Assoc

$20,840,000

$19,890,000

$17,754,425 8.3%

Patton Boggs LLP

$17,790,000

$14,390,000

$9,980,000 33.5%

Verner, Liipfert et al

$15,950,000

$18,775,000

$18,798,000 -7.9%

Akin, Gump et al

$13,280,000

$11,800,000

$10,165,000 14.3%

Preston, Gates et al

$11,620,000

$10,150,000

$9,517,000 10.5%

PricewaterhouseCoopers

$10,130,000

$6,500,000

$1,840,000 134.6%

Williams & Jensen

$8,820,000

$7,060,000

$6,340,000 17.9%

Washington Counsel

$8,470,000

$7,251,000

$6,377,000 17.1%

Hogan & Hartson

$8,353,056

$6,546,111

$6,618,646 12.3%

10

Van Scoyoc Assoc

$8,090,000

$6,480,000

$5,160,000 25.2%

11

Barbour, Griffith & Rogers

$7,460,000

$7,410,000

$5,200,000 19.8%

12

Podesta.com

$6,700,000

$5,360,000

$3,590,000 36.6%

13

Dutko Group

$6,502,450

$4,632,031

$4,176,500 24.8%

14

Arnold & Porter

$6,265,000

$4,660,000

$2,860,000 48.0%

15

Hooper, Owen et al

$6,091,000

$3,796,000

$3,270,000 36.5%

16

Timmons & Co

$5,930,000

$5,940,000

$5,260,000 6.2%

17

Alcalde & Fay

$5,550,000

$4,720,000

$3,653,000 23.3%

18

Clark & Weinstock

$5,470,000

$3,680,000

$2,253,500 55.8%

19

Capitol Assoc

$5,300,000

$4,350,000

$3,690,000 19.8%

20

Wexler Group

$5,270,000

$4,080,000

$2,900,000 34.8%

21

Griffin, Johnson et al

$4,985,000

$4,180,000

$5,290,000 -2.9%

22

Paul Magliocchetti Assoc

$4,880,000

$2,740,000

$2,400,000 42.6%

23

Baker, Donelson et al

$4,880,000

$6,820,000

$3,848,000 12.6%

24

Boland & Madigan Inc

$4,750,000

$4,200,000

$3,820,000 11.5%

25

R Duffy Wall & Assoc

$4,450,000

$3,820,000

$5,580,000 -10.7%

26

Greenberg, Traurig et al

$4,230,000

$3,440,000

$2,930,000 20.2%

27

Powell, Goldstein et al

$4,170,000

$1,815,000

$620,000

28

Swidler, Berlin et al

$4,040,000

$3,480,000

$3,770,000 3.5%

29

Black, Kelly et al

$4,020,000

$4,625,000

$5,181,429 -11.9%

30

Johnston & Assoc

$3,725,000

$2,893,000

$1,706,040 47.8%

31

McDermott, Will & Emery

$3,619,199

$4,109,473

$3,568,146 0.7%

32

Smith Free Group

$3,520,000

$3,640,000

$3,350,000 2.5%

33

MWW Group Inc

$3,500,000

$1,900,000

$1,240,000 68.0%

34

Jefferson Government Relations

$3,470,000

$3,450,000

$3,576,000 -1.5%

35

Bergner, Bockorny et al

$3,400,000

$3,190,000

$3,462,343 -0.9%

36

Winston & Strawn

$3,390,000

$3,478,450

$2,676,200 12.5%

37

Ryan, Phillips et al

$3,362,000

$3,040,000

$3,585,000 -3.2%

38

O'Connor & Hannan

$3,331,769

$3,219,257

$3,743,238 -5.7%

39

Thelen, Reid & Priest

$3,320,000

$2,470,000

$1,875,000 33.1%

40

Parry & Romani Assoc

$3,220,000

$3,320,000

$3,450,000 -3.4%

159.3%

41

O'Brien Calio

$3,180,000

$2,960,000

$2,910,000 4.5%

42

Baker & Hostetler

$3,160,000

$1,980,000

$2,019,635 25.1%

43

Wilmer, Cutler & Pickering

$3,020,000

$1,900,000

$1,560,000 39.1%

44

Manatt, Phelps & Phillips

$2,990,000

$1,940,000

$2,040,000 21.1%

45

Ernst & Young

$2,920,000

$365,000

$120,000

46

Mayer, Brown & Platt

$2,878,581

$4,260,000

$3,400,000 -8.0%

47

Ungaretti & Harris

$2,820,000

$1,600,000

$650,000

48

Arter & Hadden

$2,820,000

$4,100,000

$4,106,000 -17.1%

49

Washington Group

$2,720,000

$3,263,000

$2,720,000 0.0%

50

Ferguson Group

$2,697,900

$1,395,100

$1,616,805 29.2%

51

Copeland, Lowery & Jacquez

$2,680,000

$1,480,000

$1,520,000 32.8%

52

Alpine Group

$2,630,000

$1,795,000

$1,570,000 29.4%

53

Dewey Ballantine

$2,580,000

$3,940,000

$2,480,000 2.0%

54

Arent, Fox et al

$2,580,000

$1,820,000

$1,680,000 23.9%

55

Advocacy Group

$2,533,000

$3,442,000

$2,127,500 9.1%

56

Duberstein Group

$2,520,000

$2,200,000

$2,480,000 0.8%

57

Bingaman, Anne K.

$2,520,000

$0

$0

58

EOP Group Inc

$2,460,000

$940,000

$1,510,000 27.6%

59

Holland & Knight

$2,443,627

$2,215,000

$2,119,864 7.4%

60

Steelman Health Strategies

$2,400,000

$2,040,000

$2,080,000 7.4%

61

Carmen Group Inc

$2,360,000

$220,000

$100,000

393.3%

108.3%

[n/a]

385.8%

62

Law Offices of John T O'Rourke

$2,317,000

$2,117,289

$699,000

82.1%

63

Hecht, Spencer & Assoc

$2,280,000

$1,760,000

$1,480,000 24.1%

64

Vinson & Elkins

$2,260,000

$1,960,000

$1,420,000 26.2%

65

Dickstein, Shapiro & Morin

$2,260,000

$2,530,000

$1,290,000 32.4%

66

Sagamore Assoc

$2,230,000

$2,220,000

$1,674,000 15.4%

67

Dyer, Ellis & Joseph

$2,220,000

$1,400,000

$1,500,000 21.7%

68

Bracewell & Patterson

$2,126,000

$1,061,000

$2,057,221 1.7%

69

Ann Eppard Assoc

$2,126,000

$2,550,000

$1,477,500 20.0%

70

Legislative Strategies Group

$2,120,000

$1,430,000

$0

71

American Continental Group

$2,060,000

$2,500,000

$1,520,000 16.4%

72

Murray, Scheer et al

$2,010,000

$1,600,000

$1,556,000 13.7%

73

MARC Assoc

$1,980,000

$2,050,000

$1,790,000 5.2%

74

Hall Green & Assoc

$1,960,000

$980,000

$565,000

75

Brownstein, Hyatt et al

$1,930,000

$2,040,000

$1,680,000 7.2%

76

Hopkins & Sutter

$1,925,000

$815,000

$510,254

77

Canfield & Assoc

$1,840,000

$1,320,000

$1,180,000 24.9%

78

Jack Ferguson Assoc

$1,819,500

$1,337,500

$985,000

79

McClure, Gerard & Neuenschwander Inc $1,720,000

$1,820,000

$1,700,000 0.6%

80

American Defense International

$1,700,000

$1,195,000

$670,000

59.3%

81

Accord Group

$1,648,700

$1,554,820

$0

[n/a]

82

Wunder, Knight et al

$1,630,000

$1,950,000

$2,340,000 -16.5%

[n/a]

86.3%

94.2%

35.9%

83

O'Neill, Athy & Casey

$1,620,000

$1,370,000

$1,279,000 12.5%

84

Kessler & Assoc

$1,620,000

$1,620,000

$840,000

85

Campbell-Crane & Assoc

$1,580,500

$1,510,000

$1,420,000 5.5%

86

Ball Janik

$1,570,000

$1,340,000

$1,228,000 13.1%

87

Sunrise Research Corp

$1,560,000

$1,060,000

$300,000

128.0%

88

Balch & Bingham

$1,560,000

$820,000

$360,000

108.2%

89

Covington & Burling

$1,552,000

$2,510,000

$2,490,000 -21.1%

90

Mintz, Levin et al

$1,520,000

$800,000

$878,411

91

Collier, Shannon et al

$1,500,000

$1,290,000

$1,280,000 8.3%

92

Troutman Sanders

$1,460,000

$1,500,000

$1,340,000 4.4%

93

Downey McGrath Group

$1,460,000

$1,840,000

$2,200,000 -18.5%

94

Denny Miller Assoc Inc

$1,460,000

$980,000

$880,000

95

Collins & Co

$1,460,000

$1,540,000

$1,060,000 17.4%

96

Butera & Andrews

$1,430,000

$1,250,000

$1,265,000 6.3%

97

Oppenheimer, Wolff & Donnelly

$1,400,000

$1,520,000

$731,755

98

Gibson, Dunn & Crutcher

$1,400,000

$2,240,000

$1,240,000 6.3%

99

Fierce & Isakowitz

$1,400,000

$1,137,000

$762,000

100

Chambers, Conlon & Hartwell

$1,386,400

$1,436,500

$1,520,000 -4.5%

101

Bracy Williams & Co

$1,370,000

$2,130,000

$1,870,000 -14.4%

102

Janus-Merrit Strategies

$1,340,000

$607,000

$615,000

103

E. Del Smith & Co

$1,260,000

$802,000

$1,099,175 7.1%

38.9%

31.5%

28.8%

38.3%

35.5%

47.6%

104

Public Strategies Washington Inc

$1,257,094

$1,651,047

$3,381,050 -39.0%

105

Miller & Chevalier

$1,220,000

$1,440,000

$810,000

22.7%

106

Weber McGinn

$1,180,000

$730,000

$551,000

46.3%

107

Furman Group Inc

$1,180,000

$860,000

$800,000

21.4%

108

Thomas D. Campbell & Assoc

$1,176,450

$634,600

$634,600

36.2%

109

Tongour & Scott

$1,160,000

$1,040,000

$480,000

55.5%

110

McGuire, Woods et al

$1,160,000

$420,000

$0

[n/a]

111

Palumbo & Cerrell

$1,140,000

$1,000,000

$1,060,000 3.7%

112

Livingston Group

$1,140,000

$0

$0

[n/a]

113

Powers, Pyles et al

$1,130,000

$700,000

$390,000

70.2%

114

Davidson & Co

$1,128,000

$874,000

$1,272,625 -5.9%

115

Liz Robbins & Assoc

$1,124,823

$1,100,000

$1,280,000 -6.3%

116

Cavarocchi Ruscio Dennis Assoc

$1,121,400

$980,000

$732,920

23.7%

117

Willkie, Farr & Gallagher

$1,120,000

$400,000

$300,000

93.2%

118

National Environmental Strategies

$1,120,000

$1,170,000

$790,000

19.1%

119

Long, Aldridge & Norman

$1,095,000

$1,050,000

$560,000

39.8%

120

Reed, Smith et al

$1,080,000

$980,000

$1,050,000 1.4%

121

Olsson, Frank & Weeda

$1,080,000

$800,000

$1,040,000 1.9%

122

Robison International

$1,060,000

$1,020,000

$1,108,500 -2.2%

123

Ervin Technical Assoc

$1,050,000

$520,000

$910,000

7.4%

124

Stuntz, Davis & Staffier

$1,040,000

$1,020,000

$940,000

5.2%

125

Dow, Lohnes & Albertson

$1,040,000

$160,000

$100,000

222.5%

126

Policy Impact Communications

$1,035,000

$770,000

$255,000

101.5%

127

Da Vinci Group

$1,025,000

$90,000

$0

[n/a]

128

Goodwin, Procter & Hoar

$1,020,000

$300,000

$300,000

84.4%

Note: Lobbying figures are for calendar year 1999; campaign contributions figures are for the
1999-2000 election cycle and reflect data released by the Federal Election Commission by April
1, 2001.
http://www.opensecrets.org/lobby/lobby00/lobby.php
http://www.opensecrets.org/lobby/lobby00/former.php

INDUSTRY TOTALS
The 13 major sectors can be further broken into specific industries and interest groups. Each of
these groups has their own legislative and regulatory agenda. Heres what they spent in 1999 on
lobbying.

Sector
Name

1999 Lobbying
Expenditures

1998
Lobbying
Expenditur
es

1997
Lobbying
Average
Expenditur Growth
es

Pharmaceuticals/Health
Products

$90,675,60 $73,799,85
$75,280,551 9.7%
3
5

Insurance

$85,593,23 $77,206,90
14.2
$65,581,955
4
8
%

Electric Utilities

$70,806,59 $67,293,12
$59,332,570 9.2%
5
0

Oil & Gas

$60,564,42 $57,836,39
$63,128,028 -2.1%
8
3

Telephone Utilities

$56,288,23 $67,943,81 $62,340,284 -5.0%

Computer Equip/Svcs

$50,383,23 $38,992,70
38.7
$26,187,944
6
7
%

Health Professionals

$49,171,90 $45,839,28
$43,333,423 6.5%
2
9

Business Associations

$44,672,42 $44,578,82
$37,648,943 8.9%
5
3

Air Transport

$42,456,40 $38,659,48
11.9
$33,913,401
7
4
%

10

Misc
Manufacturing/Distributing

$40,732,67 $35,848,57
$37,562,624 4.1%
0
6

11

Misc Issues

$39,148,35 $40,204,18
$37,869,551 1.7%
3
3

12

Education

$38,187,68 $29,313,27
20.4
$26,330,335
8
3
%

13

Hospitals/Nursing Homes

$35,691,35 $26,348,99
21.4
$24,221,276
1
7
%

14

Securities & Investment

$34,377,66 $28,019,98
$31,098,287 5.1%
8
5

15

Automotive

$32,896,94 $37,719,00
$38,646,094 -7.7%
3
0

16

Government Agencies

$32,388,54 $27,841,23
$28,189,701 7.2%
8
3

17

Real Estate

$31,688,55 $25,632,09
16.5
$23,347,239
1
9
%

18

Chemical & Related

Manufacturing

$31,067,30 $25,492,61
$26,404,810 8.5%
0
1

19

Telecom Svcs/Equip

$29,518,44 $25,284,83
26.6
$18,406,976
6
9
%

20

TV/Movies/Music

$28,022,92 $29,685,42
$27,861,454 0.3%
8
4

21

Commercial Banks

$26,478,86 $32,995,16
$29,863,287 -5.8%
3
4

22

Defense Aerospace

$24,685,95 $27,633,08
$28,532,200 -7.0%
3
5

23

Tobacco

$23,665,09 $67,367,17
$38,240,340 21.3
4
2
%

24

Agricultural
Services/Products

$19,710,69 $18,198,50
14.4
$15,072,887
4
0
%

25

Health Services/HMOs

$17,458,08 $15,699,17
10.0
$14,429,464
8
5
%

26

Railroads

$15,142,62 $16,550,95
$17,998,527 -8.3%
7
0

27

Defense Electronics

$14,395,51
$9,597,000 $8,421,500
2

28

Misc Defense

$14,073,23 $11,478,41
12.8
$11,058,353
7
7
%

29

Printing & Publishing

$14,044,60 $13,102,86
$8,917,462
2
7

25.5
%

30

Casinos/Gambling

$13,899,68 $12,175,09
$8,234,125
5
9

29.9
%

31

Finance/Credit Companies

$13,610,72 $20,669,85
13.2
$10,614,222
0
0
%

32

Forestry & Forest Products

$13,539,48 $11,700,80
$12,002,052 6.2%
8
4

33

Electronics Mfg & Services

$12,495,23 $10,602,77
$8,931,160
7
3

18.3
%

34

Human Rights

$12,123,40 $10,772,84
$9,555,021
8
1

12.6
%

35

Lawyers/Law Firms

$12,098,01 $15,589,90
$9,751,168
5
3

11.4
%

36

Misc Energy

$11,933,27 $8,657,200 $6,746,850

33.0

30.7
%

37

Food Processing & Sales

$11,721,78 $11,044,51
$9,431,655
4
8

11.5
%

38

Sea Transport

$11,678,90
$8,895,011 $9,959,248
5

8.3%

39

Retail Sales

$10,803,15
$9,547,041 $7,605,224
2

19.2
%

40

Non-Profit Institutions

$10,624,48
$7,547,735 $6,760,679
4

25.4
%

41

Beer, Wine & Liquor

$10,032,68
$7,473,754 $7,124,512
5

18.7
%

42

Misc Transport

$9,970,117 $8,938,698 $7,738,848

13.5
%

43

Business Services

$9,790,000 $7,581,124 $6,228,899

25.4
%

44

Crop Production & Basic

Processing

$9,411,692 $6,597,733 $7,345,143

13.2
%

45

Mining

$8,830,450 $9,229,100 $8,803,100

0.2%

46

Accountants

$8,376,707 $6,676,297 $7,645,000

4.7%

47

Transportation Unions

$8,070,056 $8,657,900 $5,875,980

17.2
%

48

Food & Beverage

$7,930,210 $7,297,943 $5,905,620

15.9
%

49

Building Materials &

Equipment

$7,749,515 $7,935,028 $6,033,107

13.3
%

50

Construction Services

$7,049,072 $5,078,216 $5,002,514

18.7
%

51

Other

$6,872,414 $3,795,689 $3,373,143

42.7
%

52

Misc Finance

$6,689,000 $4,923,000 $3,739,950

33.7
%

53

Steel Production

$6,260,332 $4,149,727 $4,091,832

23.7
%

54

General Contractors

$6,105,655 $5,969,078 $3,971,617

24.0
%

55

Recreation/Live
Entertainment

$5,915,162 $4,122,096 $2,343,981

58.9
%

56

Gun Rights

$5,628,395 $4,218,393 $3,998,045

18.7
%

57

Lobbyists

$5,586,000 $3,520,196 $3,699,458

22.9
%

58

Environment

$5,578,827 $3,868,992 $5,312,000

2.5%

59

Public Sector Unions

$5,314,361 $4,878,141 $4,884,000

4.3%

60

Trucking

$5,246,122 $4,534,000 $3,511,122

22.2
%

61

Savings & Loans

$5,156,537 $4,160,000 $4,078,130

12.4
%

62

Misc Unions

$4,842,950 $3,697,212 $3,258,658

21.9
%

63

Foreign & Defense Policy

$4,689,918 $5,828,009 $4,991,714

-3.1%

64

Republican/Conservative

$4,571,892 $8,004,000 $9,364,000

30.1
%

65

Lodging/Tourism

$4,320,000 $4,361,174 $2,255,500

38.4
%

66

Misc Health

$4,307,000 $3,732,500 $5,441,494

11.0
%

67

Industrial Unions

$4,188,642 $5,000,457 $4,712,669

-5.7%

68

Misc Services

$3,031,264 $2,044,000 $1,746,100

31.8
%

69

Credit Unions

$2,682,497 $2,459,932 $1,460,937

35.5

%
70

Dairy

$2,600,850 $2,195,425 $1,411,744

35.7
%

71

Waste Management

$2,600,600 $2,501,848 $2,968,957

-6.4%

72

Misc Business

$2,415,867 $1,554,050 $1,091,976

48.7
%

73

Home Builders

$2,111,000 $2,820,000 $1,692,732

11.7
%

74

Environmental
Svcs/Equipment

$2,069,000 $1,395,000 $1,094,741

37.5
%

75

Building Trade Unions

$1,460,952 $1,547,299 $1,969,683

13.9
%

76

Textiles

$1,389,750 $1,512,000 $1,308,000

3.1%

77

Livestock

$1,234,520 $1,007,820 $1,182,000

2.2%

78

Women's Issues

$1,099,000 $480,000

94.7
%

79

Pro-Israel

$1,070,537 $1,122,858 $1,164,000

-4.1%

80

Clergy & Religious

Organizations

$988,000

$1,237,675

10.7
%

$978,000

$290,000

81

Fisheries & Wildlife

$847,000

$1,633,957 $1,232,710

17.1
%

82

Gun Control

$840,000

$160,000

$120,000

164.6
%

83

Special Trade Contractors

$837,310

$540,000

$394,600

45.7
%

84

Misc
Communications/Electronic $760,000
s

$879,390

$885,511

-7.4%

85

Abortion Policy/Pro-Life

$740,000

$920,000

$720,000

1.4%

86

Abortion Policy/Pro-Choice

$722,851

$185,000

$535,000

16.2
%

87

Poultry & Eggs

$530,000

$560,000

$490,000

4.0%

88

Misc Agriculture

$410,000

$660,800

$709,200

24.0
%

89

Democratic/Liberal

$120,000

$120,000

$100,000

9.5%

Note: Lobbying figures are for calendar year 1999; campaign contributions figures are for the
1999-2000 election cycle and reflect data released by the Federal Election Commission by April
1, 2001.
http://www.opensecrets.org/lobby/lobby00/industry.php

Their men in
Washington:
Undercover with D.C.'s lobbyists for hire
By Ken Silverstein
In March, when the U.S. State Department announced its new global survey of human
rights, Secretary of State Condoleezza Rice declared that the report demonstrated
Americas commitment to civil liberties, the rule of law, and a free press. We are
recommitting ourselves to stand with those courageous men and women who struggle
for their freedom and their rights, she said. And we are recommitting ourselves to call
every government to account that still treats the basic rights of its citizens as options
rather than, in President Bushs words, the non-negotiable demands of human dignity.
Flipping through the report, however, one cannot help but notice how many of the
countries that flout the non-negotiable demands of human dignity seem to have
negotiated themselves significant support from the U.S. government, whether military
assistance (Egypt, Colombia), development aid (Azerbaijan, Nigeria), expanded trade
opportunities (Angola, Cameroon), or official Washington visits for their leaders
(Equatorial Guinea, Kazakhstan). The granting of favorable concessions to dictatorial
regimes is a practice hardly limited to the current administration: Bill Clinton came into
office having said that Chinas access to American markets should be tied to improved
human rightsspecifically its willingness to recognize the legitimacy of those kids that
were carrying the Statue of Liberty at Tiananmen Squarebut left having helped
Beijing attain its long-cherished goal of Permanent Most Favored Nation trade status.
Jimmy Carter put the promotion of human rights at the heart of his foreign policy, yet
he cut deals for South American generals and Persian Gulf monarchs in much the same
fashion as his successor, Ronald Reagan.
How is it that regimes widely acknowledged to be the worlds most oppressive
nevertheless continually win favors in Washington? In part, it is because they often have
something highly desired by the United States that can be leveraged to their advantage,
be it natural resources, vast markets for trade and investment, or general geostrategic
importance. But even the best-endowed regimes need help navigating the shoals of
Washington, and it is their great fortune that, for the right price, countless lobbyists are
willing to steer even the foulest of ships.

American lobbyists have worked for dictators since at least the 1930s, when the Nazi
government used a proxy firm called the German Dye Trust to retain the publicrelations specialist Ivy Lee. Exposure of Lees deal led Congress to pass the Foreign
Agents Registration Act of 1938 (FARA), which required foreign lobbyists to register
their contracts with the Justice Department. The idea seemed to be that with disclosure,
lobbyists would be too embarrassed to take on immoral or corrupt clients, but this
assumption predictably proved to be naive. Edward J. von Kloberg III, now deceased,
for years made quite a comfortable living by representing men such as Saddam Hussein
of Iraq (whose governments gassing of its Kurdish population he sought to justify) and
Mobutu Sese Seko of Zaire (for whose notoriously crooked regime he helped win
American foreign aid). Two other von Kloberg contractsfor Nicolae Ceausescu of
Romania and Samuel Doe of Liberiawere terminated, quite literally, when each was
murdered by his own citizens. In the 1990s, after Burmas military government arrested
the future Nobel Peace Prize winner Aung San Suu Kyi and cracked down on the prodemocracy movement she led, the firm of Jefferson Waterman International signed on
to freshen up the Burmese image.
Although there are distinct limits to what they can achieve, lobbyists are the crucial
conduit through which pariah regimes advance their interests in Washington. Its like
the secret handshake that gets you into the lodge, as one former lobbyist told me.
Occasionally, firms will achieve spectacular successes for a client: one particularly
remarkable piece of lobbyist image management, for example, occurred in the mid1980s, when the firm of Black, Manafort, Stone & Kelly helped refashion Jonas Savimbi,
a murderous, demented Angolan rebel leader backed by the apartheid regime in South
Africa, as a valiant anti-communist freedom fighter. Savimbi visited Washington on
numerous occasions, where the lobby shop had him ferried about by limousine to
meetings with top political leaders, conservative groups, and TV networks. Black,
Manafort checked repeated threats by members of Congress to cut off aid to Savimbis
rebel group, which was burning and raping its way through Angola with the help of
American taxpayers.
Generally, though, lobbyists victories are more discreet. In 2004 six former members of
Congress served as election observers in Cameroon and offered an upbeat assessment
of President Paul Biyas overwhelming reelection victory, which a local Roman Catholic
cardinal described as surrounded by fraud. It turned out that the firm of Patton Boggs,
which worked for the Cameroonian government, had arranged the trip of allegedly
independent observers, whose expenses were paid by the Biya regime. Between 1999
and 2000, the Carmen Group received more than $1 million from the government of
Kazakhstan to help establish President [Nursultan] Nazarbayev as one of the foremost
emerging leaders of the New World. The lobby shop sent four writerssyndicated
columnist Georgie Anne Geyer, Providence Journal associate editor Philip Terzian, R.
Emmett Tyrrell Jr. of The American Spectator, and Scott Hogenson of the Conservative
News Serviceon all-expenses-paid trips to Kazakhstan, and upon their return all wrote
stories, ranging from critical but sympathetic to slavishly fawning, which the Carmen
Group circulated on Capitol Hill.11. The most notable entry in the latter category came from Tyrrell.
Despite traveling to Kazakhstan soon after a presidential balloting that was widely condemned as rigged,

he wrote that the country has at least four highly competitive political parties . . . the freedoms of our Bill
of Rights, and commendable tolerance.

The U.S. General Accounting Office estimated in 1990 that less than half of foreign
lobbyists who should register under FARA actually do so, and there is no evidence that
matters have improved. In theory, violators can be heavily fined and even sent to prison,
but almost no one has been prosecuted for ignoring the act, so there are few risks for
non-compliance. Those firms that do register generally reveal little information beyond
the names of their clients, the fees they pay, and limited information about whom they
contact. Because disclosure requirements are so lax, it is nearly impossible to monitor
the activities of foreign lobbyists. What little knowledge we do have of lobbyistorchestrated diplomacyincluding most of the projects discussed abovehas been
gleaned not from FARA filings but from serendipitous revelations or investigative
reporting.

Which leaves Americans to wonder: Exactly what sorts of promises do these firms make
to foreign governments? What kind of scrutiny, if any, do they apply to potential clients?
How do they orchestrate support for their clients? And how much of their work is visible
to Congress and the public, and hence subject to oversight? To shed light on these
questions, I decided to approach some top Washington lobbying firms myself, as a
potential client, to see whether they would be willing to burnish the public image of a
particularly reprehensible regime.
The first step was to select a suitably distasteful would-be client. Given that my first
pick, North Korea, seemed too reviled to be credible, I settled on the only slightly less
Stalinist regime of Turkmenistan. Until his sudden death last December, President-forLife Saparmurat Niyazov built a personality cult that outdid that of any modern leader
except possibly Kim Jong Il. High school students were required to study The Ruhnama,
Niyazovs book of personal and spiritual wisdom, described on its official website as
being on par with the Bible and the Koran. The self-declared Turkmenbashi, or
Leader of all Ethnic Turkmens, Niyazov had his image plastered on billboards and
buildings across the country, as well as on the national currency, salt packets, and vodka
bottles. He named after himself not only a town but an entire month of the year (the one
we unenlightened non-Turkmen still call January). Any opposition to the Turkmen
government is considered to be treason, and thousands of political dissidents have been
imprisoned. In 2004 a man seeking permission to hold a peaceful demonstration was
sent to a psychiatric hospital for two years.
Following Niyazovs demise, Minister of Health Kurbanguly Berdymukhamedov, the
Turkmenbashis personal dentist, became acting president.22. Berdymukhamedov was
relatively unknown when he was declared acting president. Some have speculated that he is the
Turkmenbashis illegitimate son, which would explain his unexpected ascendancy. He had been

responsible, according to the BBC, for implementing Niyazovs 2004 reform of the
health service, which many observers have blamed for its near collapse.
Berdymukhamedov was confirmed as president in an election held in Februaryhe ran

against five other candidates, all from the ruling party, and won 89 percent of the vote
in a balloting that he described as being held on a democratic basis that has been laid
by the great [late] leader, but which just about everyone else deemed to be a sham.
([H]is victory was always certain . . . and all official structures worked to ensure the
outcome, the International Crisis Group said of Berdymukhamedovs triumph at the
polls.) In an early interview after becoming president, he said that Niyazov was his role
model; as for democracy, he said, This tender substance cannot be imposed by applying
ready imported models. It can be only carefully nurtured by using the wise national
experience and traditions of previous generations. He has allowed two new Internet
cafs to open in Ashgabat, but business has reportedly been poor, perhaps due to the
soldiers posted at the doorways or to the hourly fee, which runs about $10, more than
the average Turkmens daily income.
I would have difficulty passing for Turkmen, I knew, so rather than approaching the
firms as a representative of the government itself, I instead would be a consultant for
The Maldon Group, a mysterious (and fictitious) firm that claimed to have a financial
stake in improving Turkmenistans public image. We were, my story ran, a group of
private investors involved in the export of natural gas from Turkmenistan to Ukrainian
and other Eastern European markets. We felt it would strengthen our business position
in Turkmenistan if we could convey to American policymakers and journalists just how
heady were the reforms being plotted by the Berdymukhamedov government. 33. It is not
uncommon for lobbying on behalf of foreign governments to be contracted through private firms.
Sometimes the firms are apparently acting in their own business interests: for example, a Washingtonarea construction and real estate company called American Worldwide in 2001 hired Patton Boggs to
improve relations between the United States and Angola, where the firm had been pursuing business
deals. In other cases, the firms are just cutouts for the regimes in question: when Jefferson Waterman
worked for Burma, it was actually paidin the manner of the German Dye Trustby a firm called
Myanmar Resource Development, which was fronting for the countrys generals. But it is unclear whether
U.S. lobbying firms know, or care about, the difference.

If flacking for Turkmenistan did not in itself trouble the lobbying firms, my description
of The Maldon Group was designed to raise a number of bright red flags. Turkmenistan
has vast reserves of natural gas, from which it earns about $2 billion per year in export
revenues, but the whole business has been marked by flagrant corruptionas can be
ascertained very quickly by anyone who cares to perform a Google search. A 2006 study
by London-based Global Witness reported that Niyazov kept billions of dollars in gas
revenues under his effective control in overseas accounts. Perhaps the murkiest and
most complex aspect of the Turkmen-Ukraine gas trade, the report went on to say, is
the role of the intermediary companies that have inserted themselves for more than a
decade between Turkmenistan, Russia, Ukraine and Europe. These companies have
often come out of nowhere, parlaying tiny amounts of start-up capital into billion-dollar
deals. Their ultimate beneficial ownership has been hidden behind complex networks of
trusts, holding companies and nominee directors and there is almost no public
information about where their profits go.
Before approaching the lobbying firms, I made a few minimal preparations. I printed up
some Maldon Group business cards, giving myself the name Kenneth Case and giving
the firm an address at a large office building in London, on Cavendish Square. I

purchased a cell phone with a London number. I had a website created for The Maldon
Groupjust a home page with contact informationand an email account for myself.
Then, in mid-February, soon after Berdymukhamedovs ascent, I began contacting
various lobbying firms by email, introducing my firm and explaining that we were eager
to improve relations between the newly-elected government of Turkmenistan and the
United States. We required the services of a firm, I said, that could quickly enact a
strategic communications plan to help us. I hoped that the firms might be willing to
meet with me at the end of the month, during a trip I had planned to Washington.

At around three on a pleasantly warm February afternoon, Barry Schumacher, a senior

vice president at APCO Associates, ushered me into a conference room at the firms
downtown Washington office, near the intersection of 12th and H Streets N.W.
Accompanying me was Ricardo, a Spanish-born Maldon Group consultant (in
actuality, a friend I had recruited to come along, since it seemed unlikely that a firm like
mine would send a single associate to meet with potential lobbying firms). APCO was
the first firm I had contacted, because it was such a natural candidate to represent
Turkmenistan: it has experience working not just on behalf of authoritarian regimes in
generalthe dictatorship of General Sani Abacha in Nigeria, for example, which
employed the firm in 1995, the same year it hanged nine democracy activistsbut for
Caspian regimes in particular, having done P.R. work for the oil-rich kleptocracy of
Azerbaijan.
APCO, Schumacher had written eagerly to me by email, had worked on image, policy,
foreign investment and reputation issues for a host of governments. He touted the
firms key professionals, among them former members of Congress and former
administration officials. In a follow-up note, he did ask if I might provide a bit more
information about The Maldon Group, since, for obvious reasons, he hadnt been able to
discover anything about it. We prefer to be discreet due to the sensitivity of our
business, I replied. Schumacher understood; he even volunteered that APCO would be
more than willing to sign a confidentiality agreement. I assured him that if we were to
proceed to the stage of contract negotiations, The Maldon Group would certainly be
able to satisfy any reasonable concerns about our ability to pay, but until then, I wrote,
were not prepared to share much more than what Ive already told you at the level of
preliminary conversations. To which Schumacher promptly replied, I understand, and
this is not unusual for us.
Now, as Ricardo and I entered the meeting room, three of Schumachers colleagues rose
from their seats around a conference table to greet us. There was Elizabeth Jones, a
former assistant secretary of state for Europe and Eurasia until 2005 and an exambassador to Kazakhstan; Robert Downen, a professorial type in a shirt and tie who
had previously served as a senior aide to Senator Robert Dole and was a fellow at the
Center for Strategic & International Studies; and, in a pinstriped suit, Jennifer
Millerwise Dyck, a former spokeswoman for the CIA (where, I later read in her
biography I received that day, she initiated the agencys first coordinated corporate
branding and advertising strategy) and for Vice President Dick Cheney.

The conference room, located just past the reception desk, was bland and sparsely
decorated. A coffeepot and a black plastic tray of cookies lay on a countertop just across
from where I sat. After offering us refreshments, Schumacher commenced with a
PowerPoint slide show, which he projected onto a wall. One of the first slides was called
Soft Soundings, and it ran through what Schumacher described as a vox populi of
policymakers on the subject of Turkmenistan, gleaned from interviews conducted by
him and his colleagues in preparing for the meeting with The Maldon Group. Now is
Turkmenistans most important moment since independence, read one quote,
attributed to an unnamed foundation fellow. No one is looking for perfection on
democracy and human rights reforms, read a second sounding, this one from an
administration official. I wagged my head, encouraged by this welcome news.
This really is an opportunity to define the new government of Turkmenistan,
Schumacher said, and at this point Jones took over. After speaking with her former
colleagues at the State Department, she said, she had concluded that the Bush
Administration was hoping to improve relations with the Berdymukhamedov
government. Her contacts at State werent expecting miracles in terms of political
reform; even a few small steps, like the new Internet cafs, would provide some good
hooks APCO could use to promote the regime.
People like Beth can call up these policymakers, Schumacher said with a shake of the
head, as if he himself were in awe of Joness access. Getting information like that with a
couple of phone calls is priceless. Schumacher said he had made calls of his own and
had learned from a staff director at a key committee that hearings on the topic of
energy security were coming up. Turkmenistan has a role to play here and [that] helps
us talk about it in a positive way, he said. Its another hook.
In addition to the core team around the table, Schumacher stressed, APCO had on hand
a number of other heavies who could be called upon to assist the Turkmenistan
campaign. These included former Senator Don Riegle, who, Schumacher said, was tight
with Senate Majority Leader Harry Reid; and former Congressman Don Bonker, who
had close ties with Tom Lantos, the new Democratic chairman of the House Foreign
Affairs Committee. But what about the Republican side? I asked with concern.
Schumacher assured me that the firm had access to people in both parties, not because
weve contributed money (though APCO employees, I subsequently discovered, had
contributed more than $100,000 during the last three election cycles) but because of the
high esteem in which the firms stable of former officials was generally held. And, he
added with a grin, Dyck had such strong ties to the G.O.P. that she alone was worth six
of APCOs Democratic lobbyists.
What can I say? Dyck crowed, throwing her arms out.
Turning to media strategy, Schumacher presented APCOs broad review of the coverage.
The bad news: almost all mentions of Turkmenistan were negative. On the upside, there
wasnt very much coverage to speak of. Now was the time to strike. Wasnt he worried, I
asked, that the Turkmen regime would be held to impossibly high human-rights
standards? Schumacher sought to put my mind at ease. With any P.R. campaign there

were bound to be isolated incidents that look bad, and its up to the communications
company to figure out a way to be honest about them, to react and to put them in proper
perspective, to make sure they dont derail the campaign. On the other hand, he
allowed that something really terriblethe words dangled in the airwould be hard to
overcome.
There was also the nagging question of public disclosure. Yes, Schumacher said, APCO
would have to register and The Maldon Group would need to provide some additional
information at that time, but there was no need to lose sleep about that. We live up to
the spirit and letter of the law, but we would provide minimal information, he said.
[Wed] say were working for The Maldon Group on behalf of the government and
would file semiannual reports. And thats it.
But what if we get calls from journalists? I asked.
If they call you, Jones said with a big smile, refer them to us.

Later in the presentation, a slide revealed the proposed budget for APCOs
Turkmenistan operation: $40,000 per month, plus expenses (estimated at about 10
percent of fees), and more for any travel outside of Washington. Paid advertising and
special events would cost extra, and Schumacher proposed that we set up a new website
for the Turkmen Embassy in Washington, which would cost The Maldon Group another
$35,000.44. This, admittedly, would be money well spent. The Latest News on the embassys current
website dates to September 18, 2000, and includes one item about a phone conversation between the
Turkmenbashi and the president of Uzbekistan and another that reads, On virgin lands cotton is
harvested with machines. In total, getting out our message about a new and improved

Turkmenistan would require about $600,000 over the first year.

What would we get for our money? APCOs strategy was laid out on a slide entitled
Elements of a Communications Program, of which there were four. The first was
policy maker outreach, and thanks to its political contacts, APCO would have no
problem here. Anyone who tells you they can get a congressman to do what you want
ought not to be believed, but we can get in the door and make the case, Schumacher
said.
APCO would easily be able to arrange meetings between Turkmen officials and key
members of Congress, and might be able to organize a fact-finding trip to the country as
well. Given the recent scandal surrounding the lobbyist Jack Abramoff, it would be
difficult and even unwise for The Maldon Group to sponsor a congressional trip directly,
Schumacher said, but there would surely be official delegations traveling to the region,
and we have the contacts to urge them to stop there.
Downen stepped in here, suggesting it was premature to rule out the possibility of
organizing a private junket to Turkmenistan for a crew from Congress. True, The
Maldon Group shouldnt organize it directly, but hed had personal experience with

academic groups sponsoring trips. Maybe Turkmenistan has a think tank or

university, he offered. Under the old rules, any bona fide academic institution could
sponsor [travel]. Under the new rules Im not sure, but I can check. 55. Indeed, such a trip
can be arranged under the rules passed by Congress earlier this year. These rules say that lobbying firms
cannot pay for or arrange for congressional travelwith three exceptions: one-day trips, travel paid for by
nonprofit groups, and travel paid for by universities. So The Maldon Groups very own congressional
delegation to Turkmenistan would essentially be ready for boarding as soon as APCO found a Turkmen
university willing to officially sponsor it.

The second element of the strategy was a media campaign. In a slide entitled Core
Media Relations Activities, APCO promised to create news items and news outflow,
organize media events, and identify and work with key reporters. As this was her field
of expertise, Dyck presented this slide. The media would be receptive to stories about
Turkmenistan with the change of government, she said, plus energy security is an
additional hook. We can also bring things like Internet cafs to their attention.
In addition to influencing news reports, Downen added, the firm could drum up positive
op-eds in newspapers. We can utilize some of the think-tank experts who would say,
On the one hand this and the other hand that, and we place it as a guest editorial.
Indeed, Schumacher said, APCO had someone on staff who does nothing but that and
had succeeded in placing thousands of opinion pieces.
Discussion about the strategys third itembuilding coalition support, which meant
developing seemingly independent and therefore more credible allies to offer favorable
views about Turkmenistanwas brief. As a slide on the topic put it, we would need to
start small, given that the closed nature of country has inhibited investment and
exchanges. For now, the best coalition partners would be current and potential
corporate investors in Turkmenistan, as well as think tank experts and academics.
How could we use think tanks and academics? I wondered. Im glad you asked,
Schumacher said with a chuckle. He flipped to the next slide, which discussed the fourth
element of the campaign: events. One possibility, Downen said, would be to hold a
forum on U.S.-Turkmen relations, preferably built around a visit to the United States by
a Turkmen official. Possible hosts would include The Heritage Foundation, the Center
for Strategic & International Studies, and the Council on Foreign Relations. Last week I
contacted a number of colleagues at think tanks, Downen went on. Some real experts
could easily be engaged to sponsor or host a public forum or panel that would bring in
congressional staff and journalists. The only cost would be refreshments and room
rentalSchumacher joked that APCO would bake the cookies to save The Maldon Group
a little moneyand could yield a tremendous payoff. If we can get a paper published or
a speech at a conference, we can get a friendly member of Congress to insert that in the
Congressional Record and get that printed and send it out, Schumacher said. So you
take one event and get it multiplied.
Another option, he explained, would be to pay Roll Call and The Economist to host a
Turkmenistan event. It would be costlier than the think-tank route, perhaps around
$25,000, but in compensation we would have tighter control over the proceedings, plus
gain the imprimatur of a respected third party. In order that the event not seem like

paid advertising, the title for the event should be bigger than your theme, Schumacher
explained, even as it would be put together in a way that you get your message across.
So we wouldnt call it Turkmenistan Day? I asked.
No, Schumacher replied. Energy Security would be a better theme.
Or Caspian Basin Pipelines, Jones added.
Thats how you do it, Schumacher said. The Maldon Group wouldnt have its own
speaker on the dais, but APCO would line up a few peoplepossibilities included an
administration official or an executive from an American firm involved in Turkmenistan
to speak for us. While promising reform was important, we would probably want to
focus on matters like energy and regional security. In a world where the administration
wants some realism, there may be ways to get positive messages out, Schumacher said.
A concluding slide laid out the broad benefits that The Maldon Group could expect to
see for our $600,000. These included raising Turkmenistans profile as a nation
important to the United States, building a broader base of support for the country,
and improving media coverage. After a series of firm handshakes, I promised I would be
back in touch as soon as I had consulted with my superiors in London.

The following morning, Ricardo and I headed to the offices of Cassidy & Associates,
perhaps the most prominent of all the Washington lobby shops. 66. I had phone and email
exchanges with two other firms: the Carmen Group, which attracted my interest because of its work for
Kazakhstan, and The Livingston Group, which is headed by retired Congressman Bob Livingston of
Louisiana and has represented Azerbaijan and Turkey. Livingstons work for the latter country has
included general public relations, advocating for Ankaras right to purchase advanced American
weaponry, and keeping Congress from declaring as genocide the Turkish massacre of Armenians during
the early twentieth century. Both firms expressed interest in working for The Maldon Group and offered
to sign confidentiality agreements, but they also made efforts, albeit modest, toward due diligence by
asking for additional information about my firm, and so I canceled my meetings with them. If The Maldon
Group actually existed, though, I have little doubt that both firms would ultimately have been willing to
handle the account. It was founded thirty-two years ago by Gerald Cassidy, a former staffer

for George McGovern, and for much of its existence was known as a strongly Democratic
firm. Cassidy pioneered the practice of lobbying for earmarksthe polite term for pork
but also represents Fortune 500 corporations as well as foreign countries and
businesses. Its current clients include Teodoro Obiang, who has ruled the small African
nation of Equatorial Guinea since 1979, when he executed his uncle. Between 1998 and
2006, Cassidy was paid more than $235 million in lobbying fees, more than any other
firm in Washington.
Cassidys headquarters are just a block away from APCOs but are far more elegant. The
firm occupies the entire fourth floor of its building, so that one enters the offices upon
exiting the elevator. A receptionist walked Ricardo and me into a large conference room
with a beautiful wood table polished to a bright sheen. There were about twenty seats
around the table, and eight settings had been laid out with a glass, each set atop a paper

coaster embossed with the firms name. The table held an assortment of canned soft
drinks, a pitcher of ice water with lemon slices, a cup of sharpened pencils, and a pile of
yellow legal pads.
A phalanx of six Cassidy officials soon entered the conference room, all dressed in
elegant business attire of varying shades of black, gray, and navy blue. There was Chuck
Dolan, a former senior P.R. consultant for the Kerry-Edwards campaign; Gordon Speed,
the firms pudgy, baby-faced director of business development; tall, thin Gerald
Warburg, a former Hill staffer and company vice president; Christy Moran, who during
the meeting told me she had previously worked for Saudi Arabia and helped boost its
image with an allies program that sent visitors to the country; and David Bartlett,
another P.R. specialist whose firm biography said he had helped corporate CEOs face
the nations toughest journalists.
The sixth member of the Cassidy team, and its clear leader, was firm vice chairman
Gregg Hartley, who with his crew cut and serious manner initially reminded me of a drill
sergeant; but soon he loosened up and proved to possess a certain folksy appeal. Until
2003 he had been a top aide to then House Majority Whip Roy Blunt, and he maintains
close ties to top Republicans in Congress. When Hartley quit his Hill job and decided to
become a lobbyist, a bidding war for his services ensued, the Washington Post later
reported. Cassidy . . . won it with an offer of just under $1 million a year, plus a
substantial percentage of the lobbying fees Hartley generated. Hartleys hiring marked
a key moment in Cassidy & Associates transformation during the past decade into a
lobbying enterprise that is increasingly identified with the Republican Party.
As was the case with APCO, Cassidy had immediately offered to meet with me. In an
initial phone conversation with Speed, Hartley, and Dolan, the three had asked only a
few softball questions about The Maldon Group (and, like APCO, offered to sign a
confidentiality agreement) before they began their sales pitch. Hartley pointed out that
Cassidys work for Equatorial Guinea was a very similar sort of representation to what
youre talking about with Turkmenistan. The Obiang regime had received a bit of bad
publicityhe mentioned here a banking scandal involving the governmentand
Cassidys first job had been to identify inaccurate or biased stories and try to correct
them.77. I found this amusing, because he almost certainly was thinking of me: in 2003, while working
at the Los Angeles Times, I had broken the story of the hundreds of millions of dollars of Equatorial
Guineas oil revenues that were deposited at Riggs Bank in Washington, under Obiangs effective control.
A Senate investigation not only confirmed what I had reported but uncovered even more dirt, such as the
fact that Obiang and family members had stashed millions of dollars in offshore accounts. Hartley also

boasted about Cassidys political contacts, saying, We strongly believe in a bipartisan

[approach] and mirroring the power structure. . . . You have to find champions on both
sides.
Hartley returned to that theme during the meeting at Cassidys office. His firm, he said
after passing Ricardo and me copies of a corporate brochure, 88. The brochure said that
Cassidy offered A Tradition of Ethics and Integrity that goes to the core of our beliefs and made the
claim, a brazenly cynical one even by the standards of Washington, that Gerald Cassidy had founded the
firm to ensure that Americans have access and the ability to exercise their First Amendment right to
petition their government. had strong personal relationships with policymakers, and not

just to a committee chairman here and there, as was the case with some of its
competitors. Cassidy had ties across the boardat the staff level, the committee level,
the Republican and Democratic leadership, and the administration.
We know youre talking to other firms, Hartley said pointedly. Youre going to have a
hard time matching . . . [the] types of successes his firm had racked up. For example,
thanks to Cassidys aggressive media strategy and trips it had organized to Equatorial
Guinea for congressional staffers, things were now looking up for the government there.
The proof: three years ago, Hartley said, Parade Magazine had ranked Obiang as the
worlds sixth worst dictator, grimacing as he stated that last word. Hes still not a great
guy, he went on, but hes not in the top ten anymore, and we can take some credit for
helping them figure out how to work down that list. Is he going to win the U.N.
humanitarian award next year? No, hes not, but were making progress. 99. When I
checked later, the progress seemed pretty modest. Obiang is indeed out of Parades top ten list for 2007;
now hes number eleven. In a brief summary, Parade noted that in 2003, state radio announced that
Obiang is in permanent contact with The Almighty and that he can decide to kill without anyone calling
him to account and without going to Hell.

Now Warburg took over the meeting. He talked with some passion about two
remarkable lobbying campaigns that the firm had been involved with, both of which
had succeeded in getting the U.S. government to move against its express will. The
first was eliminating a longtime trade embargo against Vietnam, which the firm had
achieved over the opposition of the families of POWs and MIAs. The key to success was
assembling an outside pressure group called the Multinational Business Development
Coalition, which was made up of major American corporations seeking business in
Vietnam. The U.S. had no relations, Warburg said. We changed that policy, ended the
embargo, and opened Vietnam up to U.S. economic exchange.
The second campaign, Warburg said, involved winning permission in 1995 for President
Lee Teng-hui of Taiwan to make a private visit to the United States over the express
opposition of the executive branch. At the time, Taiwans embassy wasnt even allowed
to lobby in Washington without permission from the State Department. Evading that
obstacle was simple: since the government couldnt retain Cassidy, a Taiwanese think
tank fronting for it did. President Bill Clinton had said he wouldnt allow Lee to come to
the United States, so Cassidy, Warburg recounted, began a campaign to lobby Congress.
After both chambers passed resolutions in support of a visit by Lee, the White House
caved. The president of the United States reversed policy, said Warburg. The
campaign had been so brilliant, in fact, that graduate students had written theses on it.
Warburg also mentioned his past work for Merhav, an Israeli firm with major interests
in Turkmenistan, for which Cassidy had obtained Export-Import Bank financing for a
trans-Caspian pipeline. Unlike the case with other lobbying firms The Maldon Group
might hire, We really know Turkmenistan. It wouldnt be on-the-job training for us.
When Warburg had represented Merhav, he met a number of Turkmen officials.
Unfortunately, the previous government had a history of shuffling ministers, he said.
I wont pursue the metaphor. To which Hartley added, We wont ask where all of
them were shuffled! There was general merriment, which seemed inappropriate, given

that sixteen ministers were jailed or sent into internal exile last year, one of whom is
believed to have died in prison.
Hartley announced that he and his colleagues had a few questions about The Maldon
Group. I would be as helpful as I could, I replied, but discretion was our firms lifeblood;
while it pained me to look like Im being evasive, there wasnt much I could say.
Were going to ask questions, and you may have to throw the wall up, Hartley said.
Dont mention names if you cant mention names.
The questions were quite easy to handle: I did little more than toss out the same scraps
of information I had given them before. We were a small group of British, Middle
Eastern, and Eastern European investors; we had a close relationship to the
government, but there were no Turkmen officials involved in The Maldon Group. I
reiterated my concerns about public-disclosure requirements, and Hartley assured me I
could rest easy. We have to disclose who we represent, but there doesnt have to be
great detail, he said. The way we would handle this, thered be very little about you and
virtually none about your investors.

When it was time for the hard sell, Warburg began by giving me a piece of intelligence
he had picked upsomething, he said, for me to share with your friends and investors
back in England. The previous week, he claimed, there had been a meeting on
Turkmenistan at the highest level of the U.S. government. Wed like to make sure
youre on the agenda for the next such meeting, he said pointedly. Wed like to be
involved in prepping the individuals before such a meeting, and wed like to be involved
in interpreting the outcome to your investors, and through you to the government in a
way that really empowers you in that market. Hartley, too, sought to emphasize how
interested Cassidy was in winning the contract. This is the sort of thing we do extremely
well, he said at one point. Its the kind of stuff that gets our juices flowing.
Of course, there was the question of money, specifically how much of it The Maldon
Group would need to hire Cassidy. For Turkmenistan, Hartley said, there could be no
quick, easy solutions; hence, he proposed a three-year effort at from $1.2 million to $1.5
million annuallyand that could run higher, he warned, if a do-gooder organization like
a human-rights group targeted the regime, necessitating intensified spin control by the
firms lobbyists. Youve looked at our bios, he said. Look at our track record and what
weve charged for other representations . . . and youll see youre not being gouged.
While insisting that I didnt write the checks, I said the figure seemed reasonable to me.
Others will do it for less, but you wont get people with our experience, our knowledge
of Turkmenistan, our ties to [the] State [Department], National Security Council, and
some parts of the intelligence community, Warburg said.
Cassidy saw its strategy as having two central prongs, one targeting policymakers and
the other targeting the media. Among the questions Id asked had been whether it was

advisable to arrange a trip to Turkmenistan for members of Congress. Hartley said that
it was, but it would be critical to pick the right members of Congress, which he defined
as those with a leaning that will be instrumental in us making progress on our
representation. As at APCO, the Cassidy team said that the post-Abramoff climate
would make it harder to arrange a private trip for members of Congressbut not
impossible, in Hartleys words. In the meantime, a less visible trip for Hill staffers
could be more easily accomplished.
Bringing Turkmen officials to Washington was also a must, though we needed to be
realistic. If The Maldon Group said it wanted Berdymukhamedov to address a joint
session of Congress, Cassidy would tell you thats not possible, Warburg said. On the
other hand, might Cassidy be able to arrange a coffee in the Senate Foreign Relations
hearing room of the U.S. Capitol where the foreign minister is warmly received? Yes, it
very well might.
Also, The Maldon Group should not underestimate the value of arranging a trip to
Turkmenistan for journalists and think-tank analysts, which was something Dolan said
he had done for the Valdai International Discussion Club, a group funded by Russian
interests that offers all-expenses-paid trips to Russia. Amid the general pampering, the
Western academics and reporters who attend are granted audiences with senior Russian
political figures. During the meeting, Dolan simply described it as a way to give people
firsthand information and mentioned that past attendees had included Ariel Cohen of
The Heritage Foundation, Marshall Goldman of Harvard, and Jim Hoagland of the
Washington Post. A similar program might work for Turkmenistan, he suggested.
Two weeks after the meeting, Cassidy laid out more of its strategic thinking in a twelvepage proposal that it sent to me by email. The firms lobbyists would educate senior
government officials and opinion makers on positive developments taking place in
Turkmenistan, and would sell the country on the basis of its strategic importance in
Central Asia and the critical role it could play in American energy security. Cassidys
preliminary research already had determined that there was accelerated interest in
Turkmenistan at the highest levels of the U.S. government. This was a great
opportunity, since it would make it easier to reach out to government officials as well as
the media, but it also presented a challenge, as greater attention can bring greater
scrutiny.
Of course, attention and scrutiny are essentially synonymous; the only reason that
more of it posed a challenge to Cassidys proposed lobbying campaign was that in the
case of Turkmenistan, the truth was almost never good. Cassidy had, in fact, already
uncovered troubling news: We have become aware, the proposal said ominously, of
U.S. determination to aggressively push an agenda of human rights and democratic
reforms in exchange for greater engagement with Ashgabat. (This supposed discovery
was surely a scare tactic. The Bush Administration has openly prioritized trade and
business promotion, not human rights, with other major Caspian energy producers.
According to a well-placed source, State Department officials have made it very clear
that the Bush Administrations major policy goal in Turkmenistan is opening the
country to investment by U.S. energy firms.) To deal with the threat of scrutiny, Cassidy

would seek to drive the story being told about Turkmenistan by the media, rather than
merely reacting to it. By engaging with correspondents, we will coordinate a global
message about political, social and economic progress.
As part of this initiative, the firm would plant pro-Turkmenistan op-eds from friendly
authors it recruited. Cassidy would also put together a list of potential vulnerabilities,
such as humanitarian issues, social conditions and otherwise. . . . With these issues in
mind, we will conduct worst-case scenario planning and response development by
anticipating crises, preparing spokespeople, [and] drafting statements. In other words,
Cassidy would have an emergency-response network in place should, for example,
opposition members happen to be mowed down by government guns. We will be your
eyes and ears in Washington, D.C., the proposal said.

In the weeks after my meetings, both APCO and Cassidy contacted me, eager to carry
out the Turkmen campaign. I replied with notes of regret, explaining that The Maldon
Group was unsure about how to proceed but that for the time being, at least, their
services would not be required. Still, it was hard not to daydream about what might have
been accomplished for the newly elected government of Turkmenistan if Id actually
had the few million dollars to spare. In May, I attended Angola Day, an all-day
conference that had been organized on behalf of the regime of President Jos Eduardo
Dos Santos, which, while not equaling the Turkmen rulers in flair, is nevertheless one of
the most crooked and predatory in the world. Angola Days sponsors included the
Woodrow Wilson International Center for Scholars, which hosted the event at its
downtown headquarters, the Angolan government, and the U.S.-Angola Chamber of
Commerce, which receives financial support from American oil companies.
It was impossible to say whether a lobbying firm was directly involved in orchestrating
the event. But other than its unfortunate titlehad APCO been running the show, it
would have been something like Africa and American Energy Security: Partners in
ProsperityAngola Day was straight out of the playbooks laid out for Turkmenistan: it
had the imprimatur of a respected third party (the Wilson Center), a coalition of
corporate allies, and a smattering of pliant academics and officials who seemed more
than willing to pen a friendly op-ed if need be. The keynote speaker was Joaquim David,
Angolas elegantly tailored industry minister, and as I watched him deliver his address,
it was hard not to think of a Turkmen official on that same dais, giving voice to the same
empty slogans and catchwords, speaking (as David did) of his governments
commitment to sustainable development, environmental protection, and social justice
despite the fact that Dos Santos has done absolutely nothing to demonstrate these
commitments. I was especially wistful during the coffee break, when I could see the real
business of the conference being conducted. Here was Witney Schneidman, a former
State Department official and member of the U.S.-Angola Chamber, approaching every
Angolan official he saw with an unctuous ear-to-ear grin on his face; Hank Cohen, a
former assistant secretary of state and former lobbyist for Angola, chatting up the
diamond magnate Maurice Tempelsman; a Chevron executive and an official from the
U.S. Agency for International Development, greeting each other like long-lost friends.

It was a vision of just how regimes like Angola and Azerbaijan, Nigeria and Equatorial
Guinea, the serial abrogators of human dignity, can make and keep their wealthy
American friends. Someday soon, perhaps, the same will happen for Turkmenistan
God and lobbyists willing.
http://www.harpers.org/archive/2007/07/0081591

Fannie Mae, Freddie Mac spent millions on

lobbying
Updated 7/17/2008

http://www.usatoday.com/money/companies/2008-07-17-fannie-freddielobbying_N.htm
By Tom Raum And Jim Drinkard, Associated Press Writers
WASHINGTON For years, mortgage giants Fannie Mae and Freddie Mac tenaciously
worked to nurture, and then protect, their financial empires by invoking the political
sacred cow of homeownership and fielding an army of lobbyists, power brokers and
political contributors.
New attention is being focused on the bruised mortgage companies as the Bush
administration presses its rescue plan to Congress. Some lawmakers have challenged
the plan's open-ended nature and expressed fears of a potential big taxpayer bailout in
an election year.
Over the past decade, both Fannie (FNM) and Freddie (FRE) made the list of
Washington's top 20 lobbying spenders. They spent a combined $170 million to cultivate
allies during that period, a bit less than the American Medical Association and a bit more
than General Electric. At the same time, their executives have consistently led the
mortgage-banking sector in campaign giving to members of Congress, contributing a
combined $16.2 million since 1997.
People who have lobbied on their behalf have played or are playing roles in the
presidential campaigns of both Republican John McCain and Democrat Barack Obama.
Defenders, including President Bush and Treasury Secretary Henry Paulson, say the
nation's two major mortgage companies which own or guarantee roughly half of the
nation's $12 trillion in outstanding mortgage debt are more vital than ever to the
smooth functioning of the nation's jittery financial markets.
FIND MORE STORIES IN: Washington | George W. Bush | Congress | Barack Obama |
John McCain | Capitol Hill | Freddie Mac | Fannie Mae | Henry Paulson | General
Electric | Medical Association | Federal Election Commission | Reps | Jim DeMint |

Franklin Raines | Federal National Mortgage Association | Timothy Howard | Leanne

Spencer | Susan Molinari | Wright Andrews
The two companies were set up by federal law as "government-sponsored enterprises"
that operate as private companies with profits and stockholders. Critics say they have
used their clout and unusual status to create a sort of regulation-free zone around their
businesses. When times are good, shareholders and executives of the companies are
richly rewarded. When times are bad, as now, taxpayers could be left holding the bag.
"Congress created this problem by creating special rules at Fannie Mae and Freddie
Mac and ignored the problem for years," said Sen. Jim DeMint, R-S.C., a sharp critic of
what he sees as a looming federal bailout.
Fannie Mae the Federal National Mortgage Association was established in the
1930s to encourage homeownership by buying mortgages from banks. That freed cash
for the banks so they could make new loans.
Fannie and Freddie Mac (Federal Home Loan Mortgage Corp.), created later but with
basically the same mission, hold some of the mortgages in their own portfolio and
package the rest as bonds and other securities, which they sell.
Neither one makes loans on its own, and they were not directly involved in the subprime
mortgage fiasco. But the housing downturn is so steep that they have been seeing
increasing delinquencies on their conventional mortgages and have been exposed to
investor flight from financial assets. Furthermore, because of their special status, they
can keep smaller capital reserves on hand than other financial institutions. They need to
raise cash to stay afloat.
Fannie and Freddie have long been distinguished by their outsized influence. They
spend heavily on lobbying and hire liberally from Capitol Hill's revolving door and their
executives give top dollar to political campaigns. They've also funneled contributions
into select charities and think tanks.
"They have always understood that the political risk was huge for them, and they put
millions of dollars into using contributions, jobs and consulting contracts to stay in the
good graces of people in power," says Wright Andrews, a veteran banking lobbyist.
"They had both parties and particularly the Democrats under incredible control."
To help keep themselves free from unwanted regulatory and congressional prying, the
two mortgage giants have surrounded themselves with scores of well-connected allies.
Fannie Mae's 51-member lobbying stable, according to its most recent disclosure,
includes former Reps. Tom Downey, D-N.Y., and Ray McGrath, R-N.Y.; Steve
Elmendorf, a Democratic political strategist and former congressional aide; and Donald
Fierce, a longtime GOP operative. Freddie Mac's list of 91 lobbyists includes former
Reps. Vin Weber, R-Minn., and Susan Molinari, R-N.Y.

At times, the push for influence has gone over the ethical line. In 2006 Freddie Mac paid
a $3.8 million civil penalty to the Federal Election Commission to settle charges that it
had used corporate resources to stage 85 fundraising dinners that raised $1.7 million for
candidates for federal office. In internal documents, Freddie Mac described the events
as an exercise in "political risk management." The fine still stands as the largest in the
FEC's 33-year history.
This past April, former Fannie Mae chief Franklin Raines and two top executives agreed
to a $31.4 million settlement with the government over their roles in a 2004 accounting
scandal.
Raines, the company's former chief financial officer, Timothy Howard, and former
controller Leanne Spencer were accused in a civil lawsuit of manipulating earnings over
a six-year period at Fannie. Raines was appointed by Clinton, after serving as White
House budget director under Clinton.
Raines' predecessor, former Fannie Mae chief James Johnson, is a prominent
Democrat who was an adviser to 2004 Democratic presidential nominee John Kerry and
was selected by Obama to help vet his vice presidential prospects. But controversy over
favorable loan deals he obtained with Countrywide Financial Corp., a bank seriously
damaged by the mortgage meltdown decline, prompted him to abruptly resign that post
in June.
McCain's campaign manager, Rick Davis, also has ties to Fannie Mae. He was
president of the Homeownership Alliance, a Fannie Mae and Freddie Mac-led advocacy
group. And Arthur B. Culvahouse Jr., a one-time White House counsel to President
Reagan, is providing behind-the-scenes advice to McCain in the Republican's search for
a running mate. Senate records show Culvahouse was registered to lobby on behalf of
Fannie Mae and Lockheed Martin in a couple of instances several years ago, although
his allies say his involvement was not extensive.
Congress and presidents have often looked favorably on legislation to encourage more
homeownership, from the hallowed income tax deduction for mortgage expenses to
setting up the Federal Housing Administration and Fannie and Freddie to help make
affordable mortgages more available. President Bush has made the "ownership society"
a main theme of his presidency.
Officials and lobbyists for Fannie and Freddie played on this political soft spot in making
their case before Congress, establishing a record of fiercely protecting their domain and
resisting efforts to bring tougher regulation.
"They have extraordinary powers and exercise them in a muscular way," said former
Rep. Jim Leach, R-Iowa, who fought years ago to try to rein in the two companies'
influence and growth. The former House Banking Committee chairman said the
government should throw them a lifeline but with a line of credit conditioned on full
repayment plus a premium, as it did in loans that helped rescue Chrysler and Mexico.

Paulson on Sunday announced a plan to create a line of credit for Fannie and Freddie
with an unspecified limit for 18 months and to give the Treasury authority to buy stock in
the two companies.
The help for Fannie and Freddie is expected to be added to a broad housing bill
scheduled for a House vote next week. Bush earlier threatened a veto over another part
of the legislation.
House Speaker Nancy Pelosi, D-Calif., said Thursday she believes he will accept the
measure, even with the provision he opposes, which is not related to the FannieFreddie issue. "The president is asking us to do something quite significant to address
this housing crisis, which has long been neglected by his administration. ... I don't think
the president is going to veto this bill," she told reporters.
The two companies defend their past actions and their financial integrity and say the
current housing crisis will pass.
"Clearly there's some tough slogging ahead. We've got some challenges in the home
ownership market to work through," said Fannie's CEO, Daniel Mudd.
Mike House, a lawyer-lobbyist who is executive director of FM Policy Focus, a financial
watchdog coalition that monitors the two government-chartered mortgage companies,
said the preferential treatment that Fannie and Freddie have enjoyed "came about
because it was a strategy on their part, executed over a number of years."
"I think the original purpose (of Fannie and Freddie) is one that is needed in the
marketplace," said House. "And I think that the legislation that is moving through
Congress will provide strong regulatory oversight and will make sure everything is done
in a balanced way."
http://ethics.gov.state.md.us/Nov-Loby08.pdf
[PAGES 119-120]
Former members of Congress are especially sought after as lobbyists.
Several years ago, Public Citizen issued a report that described this
new revolving door between Congress and the lobbying industry.
According to the report, 43 percent of the 198 members of Congress
who retired between 1998 and 2005including half the Senators
became lobbyists, a practice virtually unheard of in previous years.
During that period, a total of 2,200 former federal employees and 250
members of Congress and former heads of executive branch agencies
turned to lobbyingMost lobbyists show little, if any, concern about

whether the foreign government is a democracy or a dictatorship.

They all pay the same. The bottom line is that these lobbyists are
helping to empower foreign governmentsregardless of a countrys
history and record, and often at the expense of the U.S. interests we
once elected them to serve.
SOME OF THE CLINTON FOUNDATION CONTRIBUTORS FEBRUARY 2009
LIST

Contributor Information
Clinton Foundation
Page 1 of 2922 pages

Greater than $25,000,000

The Children's Investment Fund Foundation

UNITAID

$10,000,001 to $25,000,000

AUSAID

Bill & Melinda Gates Foundation

Stephen L. Bing

COPRESIDA-Secretariado Tecnico

Fred Eychaner

Frank Giustra, Chief Executive Officer, The Radcliffe Foundation

Tom Golisano

The Hunter Foundation

Kingdom of Saudi Arabia

The ELMA Foundation

Theodore W. Waitt

$5,000,001 to $10,000,000

Government of Norway

Nationale Postcode Loterij

Haim Saban and The Saban Family Foundation

Michael Schumacher

The Wasserman Foundation

$1,000,001 to $5,000,000

S. D. Abraham

Absolute Return for Kids (ARK)

Sheikh Mohammed H. Al-Amoudi

Alltel Corporation

Nasser Al-Rashid

Smith and Elizabeth Bagley

The Eli & Edythe Broad Foundation

Richard Caring

Gilbert R. Chagoury

Citi Foundation

Clinton Giustra Sustainable Growth Initiative - Canada

Victor P. Dahdaleh & The Victor Phillip Dahdaleh Charitable Foundation

Robert Disbrow

Dubai Foundation

Elton John AIDS Foundation

Entergy

Mr. Issam M. Fares & The Wedge Foundation

Wallace W. Fowler

Friends of Saudi Arabia

Mala Gaonkar Haarman

The James R. Greenbaum, Jr. Family Foundation

Robert L. Johnson

Howard and Michele Kessler

Michael and Jena King

Lukas Lundin

MAC AIDS Fund

John D. Mackay

Lakshmi N. Mittal

Open Society Institute

Victor Pinchuk

Presidential Inaugural Committee

Princess Diana Memorial Fund

$1,000,001 to $5,000,000

Paul Reynolds

Robertson Foundation

Bernard L. Schwartz

Walter H. Shorenstein

Arnold H. Simon

Bren and Melvin Simon

Amar Singh

Michael Smurfit

Harold Snyder

State of Kuwait

State of Qatar

Sterling Stamos Capital Management, LP

The Streisand Foundation

Suzlon Energy Ltd.

Swiss Reinsurance Company

Taiwan Economic and Cultural Office

The Alix Foundation

The Government of Brunei Darussalam

The Howard Gilman Foundation

The Rockefeller Foundation

The Roy and Christine Sturgis Charitable & Educational Trust

The Sidney E. Frank Foundation

The Sultanate of Oman

The Wal-Mart Foundation

The Zayed Family

T.G. Holdings

The Walton Family Foundation

$500,001 to $1,000,000

AIDS-Life

Malini Alles

Bank of America Foundation

Simon P. Barcelo

Frederick Baron and Lisa Blue

Richard C. Blum

Susie T. Buell and Mark Buell

The Sherwood Foundation

Cisco

Clinton Family Foundation and William J. Clinton

Confederation of Indian Industry

Lewis B. Cullman

Duke Energy Corporation

Elena Franchuk Anti-AIDS Foundation

Global Artists, Inc.

Brian L. Greenspun

Hewlett Packard Company

Patricia A. Hotung

ICAP Services North America

Irish Aid

Walid A. Juffali

Dave Katragadda

Peter B. Lewis

$500,001 to $1,000,000

Magna International Inc.

James R. Murdoch

Paul Newman and Newman's Own Foundation

News Corporation Foundation

OSI Development Foundation

Pfizer Inc

Procter & Gamble

Kjell I. Rokke

Ruettgers Family Charitable Foundation

Sanyo North America Corporation

Joachim Schoss

Gerald Schuster

David Sidoo

Soros Foundation

Steven Spielberg

Jackson T. Stephens

The Anheuser-Busch Foundation

The Annenberg Foundation

The David Geffen Foundation

The John C. Armitage Foundation

The Pierre and Pamela Omidyar Fund

The Sainsbury Family Charitable Trust

The Swedish Postcode Lottery

The Ted Arison Family Foundation USA, Inc.

Thomson Reuters

Mrs. Carole Shields Westbrook and Mr. Hugh A. Westbrook

The Winnick Family Foundation

$250,001 to $500,000

Accoona Corporation

Acxiom Corporation

Abbas Al-Yousef

American Federation of State, County and Municipal Employees

American International Group, Inc. (AIG)

Autodesk, Inc.

Anson and Debra Beard

Carlos Bremer Gutierrez

Charles Dunstone Charitable Trust

China Overseas Real Estate Development

Gustavo Cisneros & Venevision

Michael J. Cooper

Energy Developments and Investments Corporation

The Engleberg Foundation

James L. Ferraro

J.B. Fuqua

Rolando Gonzalez-Bunster

Google

Green Family Foundation

Ajit Gulabchand

Vinod Gupta

Hanwah Engineering and Construction Corporation

Hanwah L&C Corporation

$250,001 to $500,000

Frank E. Holmes

Glenn H. Hutchins

Ibrahim El-Hefni Technical Training Foundation

InfoGROUP

Kevin Jardine

Michael Lee-Chin

Philip Levine

David Lyall

George M. Marcus

Microsoft Corporation

New York's Health & Human Service Union, 1199/SEIU

Orbitex Management Inc.

Richard C. Perry

Bernard Rapoport

Denise Rich

Michael Rienzi

Ms. Nancy Ellison and Mr. William Rollnick

Sabey Limited

Donald L. Saunders

Mr. Stanley S. Shuman & The Marc Haas Foundation

Carlos Slim Hel

Joseph A. Stroud

Lalit Suri

The Coca-Cola Company

The Eastern Culture Foundation

The Fuserna Foundation

The Landrake Foundation

The Salem Foundation

The Weill Family Fund

US Islamic World Conference

Agnes Varis

Martin Varsavsky

Mark L. Walsh

Katsuhiko Yoshida

Niklas Zennstrom

$100,001 to $250,000

Douglas C. Ahlers

Aker Kvaerner ASA

Hamza B. Al Kholi

Alibaba.com Corporation

American Federation of Teachers, AFL-CIO

Loreen J. Arbus

Fred Bacher

Dennis W. Bakke

The Barrack Foundation

Barrick Gold Corporation

George and Boyce Billingsley

BrainWave Communication - Brand Academy

Edgar M. Bronfman

Peter Buffett

The John and Margo Catsimatidis Foundation

$100,001 to $250,000

CDI Contractors

Paul L. Cejas

Charles Schwab & Co.

Charles Stewart Mott Foundation

Stanley M. Chesley

Citigroup Inc.

Stephen J. Cloobeck

Timothy C. Collins

Communications Workers of America

Jon Corzine

Michael and Beth Coulson

Crabby Beach Foundation

Credit Suisse

Bob Cross

Ian Cumming

Daiwa Steel Tube, Inc.

Jim Daly

Mark Dayton

Lynn F. de Rothschild

Ross Deutsch

Robert Dorrance

Drug Chemical and Allied Trades Association, Inc.

EKTA Foundation

Basil O. El-Baz

Niko Elmaleh

Elissa Epstein

Fantasma

FedEx Services

Doug Forster

Paul I. Goldenberg

Alec E. Gores

Hamilton College

Hanwah Stores Company, Ltd.

Kathryn and Craig Hall

Craig M. Hatkoff

Patrick Heiniger

The Hermelin Family Support Foundation

Robert Hernreich

HSM Americas, Inc.

Chi-Kao Hsu

Hyundai Motor America

ICMediaDirect.Com

IF Hummingbird Foundation Inc.

India Today Group

International Brotherhood of Electrical Workers

Blayne Johnson

K.I.D.S., Inc.

Bruce E. Karatz

Karlheinz Koegel

Christopher G. Korge

$100,001 to $250,000

Lata Krishnan

Charles Kushner

Thomas Lee and Ann Tenenbaum

Ira H. Leesfield

Lehman Brothers Holdings Inc.

William S. Lerach

Jim Levin

Max Markson

Hani H. Masri

Patrick McKillen

McKinsey & Company

Roger McNamee

Merrill Lynch & Company Foundation, Inc.

The Garfinkle Minard Foundation

Mohegan Sun

Joe H. Morita

Alfred H. Moses

MTV Networks

Philip D. and Tammy S. Murphy Foundation

Mylan

National Opera of Paris

Oak Foundation

Ogilvy Public Relations Worldwide

Lyndon Olson

Opportunity International

Mike Patel

Alan J. Patricof

James E. Pederson

Raani Corporation

Ranbaxy Pharmaceuticals Inc.

Reliance Europe Limited

Danny Rimer

Sunbelt Communications Company

Israel Roizman

Howard A. Rubin

Joseph Safra

Allen Salmasi

Sandler Family Supporting Foundation

Sanford C. Bernstein

SBC Foundation

Richard M. Scaife

Diane M. Simon

Jay T. Snyder

Alan D. and Susan Lewis Solomont Family Foundation

Bay Harbour Management

Ian W. Telfer

The American Jewish Committee

The Berry Gordy Family Foundation

The Clarence and Anne Dillon Dunwalke Trust

The Doris and Donald Fisher Fund

$100,001 to $250,000

The Estate of Mary Perry

The Forward Electric Company, Ltd.

The Monte dei Paschi di Siena

The Nurture Nature Foundation

The Spirit Foundation

The Stassen Group

The Trinity Foundation

The University of Judaism

Jonathan M. Tisch

Andrew Tobias

United Nations Foundation

Friso Van Oranje

Visa Inc.

Wallace Global Fund

William Wardlaw

Mark Weiner

Poju Zabludowicz

$50,001 to $100,000

ABC Oriental Carpets Inc.

Wendy Abrams

David Aisenstat

Aisiks Capital, LLC

American Heart Association

Nancy A. Aossey

Armstrong World Industries, Inc.

The Truman Arnold Companies

Audemars Piguet North America

Farhad Azima

Tumer Bahcheli

Takhirzan Baratov

BD (Becton, Dickinson & Co.)

Gary R. Belz

Philip R. Berber

Bloomberg L.P.

Blum Family Foundation

BMCE Bank

Erskine B. Bowles

Development Specialists, Inc.

Robert Cathery

CB Richard Ellis, Inc.

Morris Chang

Bruce Charash

Charles River Charitable Foundation

Dover Hotel Associates, LLC

Hampshire Hotels & Resorts, LLC

Chicago Climate Exchange

Guiseppe Ciardi

Robert J. Congel

Contrack International, Inc.

Corporacion Aeroportuaria Del Este

Andres U. Crane

$50,001 to $100,000

Cyrom Group SA

William M. Daley

Bal G. Das

Robert A. Day and The Willametta K. Day Foundation

Carine S. de Bruijn-de Meyere

Deutsche Bank Americas

Deutsche Bank Americas Foundation

Ronald I. Dozoretz

Drew University

Albert J. Dwoskin

The Dyson Foundation

Victor Elmaleh

Mark W. Erwin

Eduardo Eurnekian

Alfonso Fanjul

A. Huda Farouki

David Fisher

M. A. Fisher

Jason Flom

Freddie Mac

Funda

Fundacion Azteca America

Fundaci

Steven Funk

FXB (Francois-Xavier Bagnoud) International

Mark T. Gallogly

General Motors Corporation

Gibson Guitar Corporation

James H. Gilliam

Global Impact

Global Steel Holdings, Ltd.

Michael A. Goldberg

Goldman Sachs & Co.

Government of Jamaica

Michael D. Granoff

Robert Green

Gulf Finance House

Louise Gund

Preston Haskell

Henry Lambertz GmbH & Co. KG

Jack D. Hidary Foundation

Idealab

Institute for OneWorld Health

International Bank for Reconstruction and Development

Irwin M. Jacobs

Jay S. Jacobs

Neil Johnson

Robert Trent Jones

The Kandell Fund

The Katz Foundation

$50,001 to $100,000

Walter Kaye

Keystone Service Systems, Inc.

John Khoury

Knoll, Inc.

Sergey Kurzin

Marc Lasry

Steve Lawrence

Lear Family Foundation

Lawrence H. Linden

Lortron America Inc.

Richard Machado

Ira C. Magaziner

Stephanie P. Marshall

Deryck C. Maughan

Thomas F. McLarty

The Horace W. Goldsmith Foundation

Mental Insight Foundation

Lynn Meredith

Herbert S. Miller

Michael E. Mills

Ministry for the Environment and Territory, Italy

Monsanto Company

Jonathan More

MPOWER Labs

Myron M. Cherry & Associates

N. M. Rothschild and Sons, Ltd.

Odebrecht Overseas Limited

Orfalea Foundations

Dean Ornish

Cary Patterson

Penn, Schoen & Berland Associates

Lea Porter

Pratt Holdings (USA) INC, Chairman Account

Punta Cana Foundation

Kirk Radke

Robert J. Rankin

Regions Financial Corporation

RehabCare

The Ressler/Gertz Family Foundation

The Catherine B. Reynolds Foundation

Riggs Benevolent Fund

Patrick Rocca

Greg A. Rosenbaum

The Shelly and Donald Rubin Foundation, Inc.

The Robert E. and Judith O. Rubin Foundation

The May and Samuel Rudin Foundation

Rushlake Hotels (USA), Inc..

Federico Sada Gonz

Samuel, Son & Co., Limited

Julio M. Santo Domingo

$50,001 to $100,000

Sarina Russo Job Access

Arthur Schechter

Andrew Scheinman

Thomas B. Schueck

Barry Segal

Alan B. Slifka

Kathleen M. Sloane

Kennedy Smith Foundation

Beryl L. Snyder

Brian Snyder

James Stanard

Standard Chartered Bank

Standard Chartered PLC

Starbucks Coffee Company

Studio Moderna SA

Dilini Management Group, LLC

Sussman Family Foundation

Taybridge Limited

Ted Conferences LLC

Telnem Holdings LLC

Judy K. Tenenbaum

The Cafaro Foundation

The Engelberg Foundation

The Hinduja Foundation

The Hunt Family Foundation

The John E. Fetzer Institute

The Karan-Weiss Foundation

The Katz Foundation

The Kind World Foundation

The Lemelson Foundation

The National Philanthropic Trust

The Schooner Foundation

The Skoll Foundation

The Stella Boyle Smith Trust

The Whittemore Collection Ltd.

Time Warner, Inc.

Angelo K. Tsakopoulos

Turtle Pond Publications

University of Florida

University of Southern California

Verizon Communications

Anthony von Mandl

The Wagner Family Foundation

Ellen and Don Walker

Kyle R. Washington

Lou Weisbach

Westfield Corporation Inc.

John E. Williams

Neil Woodyer

$25,001 to $50,000

Abbot Laboratories

$25,001 to $50,000

Claas Abraham

Abraham's Vision

James D. Abrams

Affinity Marketing Partners, LLC

African Rainbow Minerals (ARM)

Andre Agapov

Agvar Chemicals Inc.

Musaed N. Al Saleh

Al Sayer Group

David M. Alameel

Madeleine K. Albright

Aikarakudy G. Alias

Altira Aktiengesellschaft

Roger Altman

Altria Group, Inc.

AMATRA Leveraged Feeder Holding Limited

American Electric Power Company

American Metals & Coal International, Inc.

Hope Ammann

AMR Research, Inc.

Ronald M. Ansin

APCO Worldwide

Barry Appleton

Autogrill S.p.A.

Clarence Avant

Bahrain Petroleum

Jason Bak

Banque Privee Edmond De Rothschild S.A.

Ari Banyasz

Aidan Barclay

Robert B. Barnett

Bruce W. Bastian

Baugur Group

Beckman Coulter, Inc.

Beirut Container Terminal Consortium SAL

Ron Beller

Jack C. Bendheim

William Benter

Samuel R. Berger

Melissa Berman

Ernesto Bertarelli

Best Buy Purchasing LLC

BET

Bio-Reference Labs, Inc.

Blackmont Capital Inc.

Herminio Blanco

Bon Secours Health System, Inc.

Bracco AMT Inc.

Brentwood Properties Limited

Brian and Lavinia Snyder Foundation

$25,001 to $50,000

Dolph Briscoe

Rory Brooks

Brown Harris Stevens Commercial Services, LLC

Clifford L. Brown

Debbie Buffini

John Burgess

Julia L. Calhoun

Iris Cantor

Capstone Turbine Corporation

Casten Family Foundation

Shushana Castle

CATVP-TV CABO Portugal, S.A.

CEBC Hungary

Centenary Holdings

CH2M Hill

Cherokee Investment Partners

Yu-Lon Chiao

China International Industry & Commerce Co

Po Chung

CL BioPharma Group

CMGRP, Inc.

Coexist Foundation

Ronald Cohen

John M. Connors

Continental Engineering Corporation

Ann Crockos

Crystal Springs Foundation

Cuatrecasas Abogados

R. B. Curry

Cynthia and George Mitchell Foundation

Damco Energy SA

Yoshiko S. Dart

Frederick K. Day

Bruce Dayton

De Agostini SpA

De Beers Marine Namibia

Evelyn de Rothschild

Paul G. De Vido

Bruce Deifik

Desktone, Inc.

Frank J. Devlyn

Cameron Diaz

Digicel

Abigail E. Disney

Dockser Family Foundation

Ecisa Engenharia Comercio e Industria

EcoSecurities Group PLC

Ecotricity

EDP - Energias de Portugal, S.A.

Kamran Elahian

$25,001 to $50,000

Richard J. Emanuel

Enel S.p.A

Energie Baden - Wuerttemberg AG (EnBW)

Enso Capital Management

Equator Environmental, LLC

Equity International

Erland & Rose Marie Karlsson Foundation

Johannes Erskine Flo

Jorge E. Estrada

Jenie Eui Sun Hwang-Kang

FCP Holdings, LLC

FHC Health Systems, Inc./ValueOptions

Fiba Holding A S

Financial Instruments & Investment Corp

Jesse Fink

First American Title Insurance Company

Eileen Fisher

Wayne S. Flick

Philippe Foriel-Destezet

Four Winds Capital Management

FPL Group, Inc.

R. B. Fradd

Fred Alger Management, Inc.

J. R. Fredericks

David Freeman

Fubon Financial Holding Co., Ltd.

Eric S. Fuller

Sonia E. Gardner

Richard A. Garriott

Georgetown University

Jonah Goodhart

James C. Graham

Nigel C. Green

Francis Greenburger

Carol Gregory

Grupo Orsa

GSM Association

H&R Block, Inc.

H.I.G. Capital, LLC.

Joseph Hackmey

Robert Haddock

Louis Hakim

Hampshire Hotel & Resorts, LLC

Sidney Harman

James A. Harmon

Russell D. Harrington

Gautama Hartarto

Hartz Mountain Industries

HBO

Veronica Hearst

$25,001 to $50,000

Ilkka Herlin

Elzie Higginbottom

HII-Finance Corporation

Earle J. Ho

Homex

Cindy Horn

Jim Hornthal

John S. Hunkin

Ihlas Holding A.S.

ImagineNations Group

International Organization for Secure Transactions (OISTE)

International Peacebuilding Alliance (Interpeace)

Inveneo Inc.

IF Hummingbird Foundation

Istrabenz, Holding Company

Jacob Fruitfield Food Group

James Richardson & Sons, Limited

Don H. Jayawardena

Joan R. Platt TTEE Survivors Trust

Norah Jones

Scott W. Jones

Vernon E. Jordan

Vidar Jorgensen

Ernest Joshua

Daniel Julien

Kana Investments

Zachary Karabell

Donna Karan

Bruce Karsh

Richard Kauffman

Kassy Kebede

Kentfield Management Inc

Sol Kerzner

KeySpan Corporation

Sarah Kovner

Laiwu Steel Group

LaSer

Frank Lautenberg

Lazare Kaplan International Inc.

Lee & Gund Foundation

Thomas A. Leonard

Moses Levy

Solomon Lew

Lewis B. and Dorothy Cullman Foundation Inc.

Liquidnet Holdings, Inc.

London Drugs Limited

Lostand Foundation, Inc.

Lottomatica S.p.A

Juno Madan

Ludmila Malofeeva

$25,001 to $50,000

Charles T. Manatt

Maplecroft

Mauricio T. Marques

Marsh Inc.

Marshall Street Management, LLC

Oki Matsumoto

MCJ Foundation

Mahmood Khimji Mehdi

Mukesh H. Mehta

Richard P. Menell

Merck & Co., Inc.

Mestel & Company

Metropolitan Access Inc.

Metropolitan National Bank

MFI Foundation

MineLife-International Resources Foundation

Mix System Holding Company

Mohamed Naser Al-Sayer & Sons Est. Co.

Multiline Textil GmbH

Dikembe Mutombo

MWH Global, Inc.

Suresh Nanda

Fernando Napolitano

National Bank of Kuwait SAK

National Constitution Center

Hassan Nemazee

Newland Communities

Nike Inc.

Noble Group Limited

Noble Resources Ltd

Novo Nordisk Inc.

Omidyar Network

Omnilife Group

OneRoof

Opportunity Education Foundation

OVG

Oyatsu Company, Ltd.

Carl Page

Pankobirlik

Paradigm Nouveau Enterprises, LLC

Perstorp Holding AB

John H. Peterson

Richard G. Phillips

PI International

Brock Pierce

Pirelli & C. Ambiente Renewable Energy

Proskauer Rose LLP

Prot

Quadrant Capital Advisors, Inc.

Sanam Quraishi

25,001 to $50,000

Keith Reinhard

John W. Rendon

Reno De Medici S.p.A

Rensselaer Polytechnic Institute

Luis A. Renta

Lilli J. Rey

Riggs, Abney, Neal, Turpen, Orbison, Lewis

Amy L. Robbins

Liz Robbins

Rogers Communications Inc.

Michael J. Roux

Miles L. Rubin

Ruesch Family Foundation

Lily Safra

Robert Sager

Adam Said

Salesforce.com

Samba Financial Group

Samsung Electronics America, Inc.

San Pellegrino Holdings Ltd.

Sandler Capital Management Charitable Foundation

Robert E. Schram

Seed Media Group

Seeliger y Conde

Datuk Vinod B. Sekhar

Sekunjalo Investments LTD.

Serebra Learning Corporation

SES Americom

Niranjan S. Shah

Shaklee Corporation

David E. Shaw

David L. Shuman

SICPA Management S.A.

SICPA Product Security Inc

Bud Sikes Yorkin

Simon Family Philanthropic Foundation, Inc.

Frank J. Sixt

Solera Capital

Ted Stanley

Star Entertainment GmbH

David S. Steiner

Jon L. Stryker

Suez Environnement

Sunshine Group of Companies

Richard L. Swig

Roselyne C. Swig

SymbioCycles

Taiwan Mobile Foundation

Tapestry Networks, Inc.

Joel D. Tauber

$25,001 to $50,000

Temasek Holdings Ltd

Tenerife Island Government

The Alavi Foundation

The Altman/ Kazickas Foundation

The Bonwood Foundation

The Camelot Group International

The Case Foundation

The Chesonis Family Foundation

The Continental Engineering Company

The Dow Chemical Company

The ForeSight Group

The Garfinkle Minard Foundation

The Gores Group

The Hall Group AP Account

The Hunger Project

The Institute for Philanthropy

The Jena and Michael King Foundation

The McLarty Companies

The Nathan Cummings Foundation

The Rachel and Lewis Rudin Family Foundation

The Rockwool Foundation

The Ron Beller and Jennifer Moses Family Foundation, Inc.

The Sager Family Foundation

The Scott and Suling Mead Foundation

The Tytel Family Charitable Foundation, Inc.

The University of Liverpool

The UPS Foundation

Thommessen

Tilder

TOMS

Matt A. Towery

Ted Townsend

Trio Foundation

U.S. Trust Corporation

UBS AG

Unbound Philanthropy

United Refining Company

United Way of America

University of Cambridge

University of Iowa

Urban Zen, LLC

US Education Finance Group

John Usdan

Value Financial Group

VantagePoint Venture Partners

Helen E. Veit

Veolia Environnement Paris

Via Technologies, Inc.

Viacom International

Viel et Cie

$25,001 to $50,000

Virgin Unite

Wesley Capital

Randy Wilbourn

Leonard A. Wilf

John F. Woldenberg

Rex Wong

World Health Organization

WPP

X PRIZE Foundation

XANTOS s.a.s.

Yahoo! Employee Foundation

Robert G Yasi

Kenneth K.T. Yen

YES Bank Limited

Huey-Min Yu

Alfonso T. Yuchengco

Yum! Brands Foundation, Inc.

$10,001 to $25,000

"I Won't Cheat" Foundation

3i Group PLC

Asim Abdullah

ABnote Brazil

Said Abu Hajleh

Actavis

Admiral Building Products

AES Corporation

Arthur S. Agatston

Ariel M. Aisiks

The Akhoury Foundation

Sultan Al Qassemi

Alcoa, Inc.

Aleo Solar AG

Alfa Corporativo, S.A. de C.V.

ALG Transportation, Inc.

Roger Allen

Allstate Insurance Co.

Alvarez & Marsal

Omar Amanat

Ameresco

American Institutes for Research

American Iron and Steel Institute

American Standard Foundation

AmeriCares Foundation, Inc.

Roger Ammann

Amyris Biotechnologies

Anchin, Block & Anchin, LLP

Chris Anderson

Christian B. Angermayer

Apollo Management LP

Appleton & Associates International Lawyers

Placido Arango

$10,001 to $25,000

Demetri Argyropoulos

Bernard Arnault

Ian Arnof

Art Partner

Ayman Asfari

Cliff Asness

ASSET4

ATEbank

Aviation Leasing Group

Robert Bagel

Vinita Bali

Balli Group PLC

Baltic International Bank

Robert Banack

Banca Popolare di Sondrio

Douglas J. Band

Ben F. Barnes

Barr Laboratories, INC.

George S. Barrett

Charlene Barshefsky

Sid R. Bass

Felipe Bautista

Bayt Com Inc

Anne E. Beckett

Paul Begala

Jill Belasco

Bell Canada Enterprises

Richard E. Belluzzo

Robert H. Benmosche

Lloyd M. Bentsen

Donna Berber

Nicolas Berggruen

Jeffrey Berman

Meyer Berman

Best Buy Co., Inc.

Raymond Bickson

Biomass Investment Group, Inc.

Jaka Bizilj

Thor Bjorgolfsson

Blackwater Training Center, Inc.

John W. Bloom

BNP Paribas AMS

Jan Bonde Nielsen

Lori Bonn

Booz Allen Hamilton

Borghese Inc.

Boston Foundation

Bottle Crew

Mark Bouris

Alfred W. Boylan

$10,001 to $25,000

BP p.l.c.

Bracco Diagnostics, Inc.

Bridgeway Foundation

Horace W. Brock

Beth Brooke

Brown University

Lara M. Brown

Charles W. Burson

Kathy Bushkin Calvin

Business for Social Responsibility

Brook Byers

Calyon Americas

Alonzo Cantu

Capital Corporation

CapitalSource Finance LLC

CapitalSource Inc.

Danilo Caro

Donald Carter

Mary Ann Casati

Steve Case

Gilbert F. Casellas

CEAPS

Centennial Communications Corp.

Kuji Chahal

Leon I. Charash

Chartwell Education Group LLC

Steve Chen

H. T. Cho

Valerie Chort

Robert Christopherson

Navneet S. Chugh

Cisneros Group of Companies

CITGO Petroleum Corporation

Cleantech Group, LLC

Climate Change Holdings Ltd.

Cobega (Compania Bebidas Gaseosas)

Cofinoga

Betty Cohen

Gary M. Cohen

Richard Cohen

Kenneth D. Cole

Andrea S. Colombel

Colonial Life Insurance Co, Ltd.

Columbia University

Companhia Suzano de Papel e Celulose

CompuMentor

Concern Worldwide

Concern Worldwide USA Inc

Luis Conde

Consolidated Contractors Inter. Co. SAL

$10,001 to $25,000

Esther L. Coopersmith

Harry Coplan

Covanta Projects, Inc.

Aron Cramer

Creative Artists Agency

Creative Artists Agency Foundation

Cristensen Chile, S.A.

CS Financial, Inc.

Laurie Cunnington

D1 Oils plc

Darlene Daggett

Dahlman Rose & Co., LLC

DaimlerChrysler Fund

John Danielson

Laurie David

Baron Davis

Marcos de Moraes

Rudy deLeon

Delphi Financial Group, Inc.

William S. Demchak

Denise Rich Songs

Desarrollo Investments LLC

Desjardins Financial Group

Development Specialists, Inc.

Armando Di Natale

Diamond Resorts International

John Dittmar

David Dodson

Dogan Sirketler Grubu Holding A.S.

John F. Driscoll

Michael Driver

Gail Drummond

Andre Dua

Dubai International Financial Center

Dundee Securities Corporation

DUTCO Group

E. Oppenheimer and Son

East Meets West

East Side Entrees

ecoAmerica

EcoPower Brazil

Mary Edlow

Tracey Edmonds

Brian Egolf

John B. Ehrenkranz

Alexander S. Ehrlich

Gary W. Eikenhorst

Eileen Fisher Foundation

Harald Einsmann

Johan Eliasch

$10,001 to $25,000

Elite Sports Marketing

Elizabeth W. Ellers

Rahm Emanuel

EMD Serono, Inc.

Emergya Wind Technologies, BV

John B. Emerson

Philipp Engelhorn

Equity Bank Limited

Ernst & Young, LLP

ESRI

Event Launcher Corporation

Evolvence Capital

Falck S.p.A.

Family Health International

Family Health International

Fares I. Fares

Farmat SA

Robert Farmer

Feed The Children, Inc.

Edward Feigeles

Andrew Feldstein

Donald C. Fergusson

Raul Fernandez

Raj Fernando

Fidelity Charitable Gift Fund

FIIC

Finavera Energy Canada, Inc.

Joshua A. Fink

Jennifer Finkelstein

First Bank of Nigeria PLC

First Solar, Inc.

Jason M. Fish

Mark B. Fisher

Todd Fisher

Ross Fitzgerald

FL Group

Alan H. Fleischmann

John R. Fleming

Florida Crystals Corporation

Foodcorp Proprietary Limited

Forum Capital Partners

Lew Frankfort

Friday Interest

Fried, Frank, Harris, Shriver & Jacobson LLP

Rob Friedman

Susan Fuller

Fundacion Alvaralice

G Tech Corporation

John F. Galbraith

Galen Capital Group

$10,001 to $25,000

Elite Sports Marketing

Elizabeth W. Ellers

Rahm Emanuel

EMD Serono, Inc.

Emergya Wind Technologies, BV

John B. Emerson

Philipp Engelhorn

Equity Bank Limited

Ernst & Young, LLP

ESRI

Event Launcher Corporation

Evolvence Capital

Falck S.p.A.

Family Health International

Family Health International

Fares I. Fares

Farmat SA

Robert Farmer

Feed The Children, Inc.

Edward Feigeles

Andrew Feldstein

Donald C. Fergusson

Raul Fernandez

Raj Fernando

Fidelity Charitable Gift Fund

FIIC

Finavera Energy Canada, Inc.

Joshua A. Fink

Jennifer Finkelstein

First Bank of Nigeria PLC

First Solar, Inc.

Jason M. Fish

Mark B. Fisher

Todd Fisher

Ross Fitzgerald

FL Group

Alan H. Fleischmann

John R. Fleming

Florida Crystals Corporation

Foodcorp Proprietary Limited

Forum Capital Partners

Lew Frankfort

Friday Interest

Fried, Frank, Harris, Shriver & Jacobson LLP

Rob Friedman

Susan Fuller

Fundacion Alvaralice

G Tech Corporation

John F. Galbraith

Galen Capital Group

$10,001 to $25,000

Murray L. Galinson
Gap Inc.
Mario Garnero
Garrett Family Foundation
Scott Garrett
Richard K. Garrison
Laurence S. Geller
Patrick Getreide
Gevity HR, Inc.
Gordon D. Giffin
Ephraim Gildor
JoAnne Gimbel
Rob Glaser
Dan Glickman
Global Options, Inc.
Global Security Institute
Globeleq
Parmeshwar Godrej
Janos Goenczoel
Matt Gohd
Alejandro Gomez
GOOD
Noah Goodhart
Karen Gordon
Julia S. Gouw

Grameen America, Inc.

Grant Management
Peter C. Grant
Green Dimes
Green Mountain Coffee
Roasters
Tony Greenberg
Grupo Amanco S.A.
Grupo Ferrovial S.A.
Grupo Financiero Inbursa
Grupo Hospiten Espana
Morty Guild
Rajat K. Gupta
Gary Guseinov
Polly W. Guth
H.J. Heinz Company
Foundation
Peter Halstead
Hamza Alkholi Group
Karl Handelsman
Cynthia Harrell
Stephanie Harrington
Charles T. Harris
Robert W. Harris
Vance Hartke
Hashoo Group

Sadruddin Hashwani

10,001 to $25,000

Yashar Hedayat

Hedef - Alliance Holding A S

Mark Heffernan

Christopher K. Hehmeyer

Charles Heilbronn

Tom Hendrickson

Hermitage Capital Management

Hernreich Family Foundation

Diego Hidalgo

Seema Hingorani

Benny Hinn

Jerome Hirsch

HMS Americas, Inc

Fred P. Hochberg

Gary A. Hoffman

Richard C. Holbrooke

Alan Horn

Hospiten Gestion A.I.E.

Hospiten Internacional S.L.

Ronald Howard

HPJ Media Ventures Management, LLC

HSM

HTC Foundation

Human Rights Watch

Humana People to People

Hunt Alternatives LLC

Hunter Douglas N.V.

Hunter Panels

Chad Hurley

Hutchins Family Foundation, Inc.

Jeanette W. Hyde

I.I.U.

IBM

IDEO

Ikatu International

Imagine Entertainment

Indian Farmers Fertilizers Coop. Ltd

ING Foundation

InnoVida Holdings, LLC

Inteko

Intel Corporation

Intercontinental Bank Plc

Intercontinental Property Investments Inc.

Interface, Inc.

International Business Management

International Port Management SA

J.C. Penney Corporation

J.P. Morgan Chase & Co.

Duncan N. Jackman

Margaret A. Jackson

$10,001 to $25,000

Roland E. Jacquard

Andrea Jaeger

Asad Jamal

Abdullatif M. Janahi

Janet W. Ketcham Foundation

Jeld-Wen, Inc.

Jelmoli Holding AG

JLF Corporation & Toogoolawa Foundation

JLF Corporation Pty Ltd

JN-International Medical Corporation

John L Loeb Jr. Foundation

John O'Donnell Associates LLC

Rajive Johri

Quincy Jones

Jordinvest

Jove Management

JSW Steel Limited

Judy Point Charitable Trust

Ana P. Junqueira

Kalyani Foundation

Abdullah Saleh Kamel

KAO & Company

Jonathan Kaplan

Robert S. Kaplan

Michael A. Karsch

Katzenbach Partners

Nasser Kazeminy

Keepcomingback.com, LLC

Kenya Commercial Bank

Nasser D. Khalili

Taher A. Khan

Theodore W. Kheel

Suresh Khosla

David S. Kim

Jena King

Kirloskar Brothers Limited

Jonathan D. Klein

Patricia Kluge Moses Foundation

KME Group SpA

Knight Foundation

Durward Knowles

Jerome Kohlberg

John Kornreich

Daniel Kranzler

Marc A. Kritzer

Wynnette LaBrosse

Philip Lader

Lafarge

Muslim Lakhani

Lalique

$10,001 to $25,000

L'Altra Napoli

Dennis M. Langley

Miguel D. Lausell

Scott Lawlor

Levi Strauss & Co

Rick Levine

Kevin Lewis

Bruce Lindsey

Gregory Lipper

Little Star Foundation

LivingGoods

Bruce Llewellyn

Lone Pine Foundation, Inc.

Lund Ventures & W.I.L.D.

Luxury Retail, Ltd.

M. Night Shyamalan Foundation

Macy's Group, Inc.

Mailman Foundation

Maimonides Medical Center

Make The Difference Network

Afzaal Malik

Management Sciences for Health

Mandarin Global Corporation, Limited

Marin Community Foundation

Marvin Markowitz

Markson Sparks!

Marshall Wace Asset Management

Vicki Marshall

Martha Stewart Living Omnimedia

Maximilian Martin

Eduardo Martinez

Masdar, Abu Dhabi Future Energy Company

David C. Mathewson

Mathias Family Foundation

Marissa Mayer

MBAs Without Borders

James E. McClelland

Susan McGee

Lori McGoran

Ramsey McGrory

John C. McGuire

Stan McLelland

Mcorp Global Ltd.

Medley Capital LLC

Richard Medley

Medtronic, Inc.

Melvin Lipsitz Family Foundation

Mercy Corps

Merrill Lynch & Company, Inc.

ALL DECISIONS ARE MADE THROUGH $$$ INFLUENCE $$$. Michael

Moore should have addressed the Democratic Partys side of the
Saudi/Dubai ties and not just the Bush side its more credible when
you show how BOTH political parties are sold out.
http://www.govtrack.us/congress/billtext.xpd?bill=hr110-33

HRES 33 IH
110th CONGRESS
1st Session
H. RES. 33

Recognizing the thousands of Freemasons in every State in the Nation and honoring
them for their many contributions to the Nation throughout its history.
IN THE HOUSE OF REPRESENTATIVES
January 5, 2007

Mr. GILLMOR submitted the following resolution; which was referred to the Committee
on Oversight and Government Reform

RESOLUTION

Recognizing the thousands of Freemasons in every State in the Nation and honoring
them for their many contributions to the Nation throughout its history.
Whereas Freemasons, whose long lineage extends back to before the Nation's
founding, have set an example of high moral standards and charity for all people;
Whereas the Founding Fathers of this great Nation and signers of the Constitution, most
of whom were Freemasons, provided a well-rounded basis for developing themselves
and others into valuable citizens of the United States;
Whereas members of the Masonic Fraternity, both individually and as an organization,
continue to make invaluable charitable contributions of service to the United States;
Whereas the Masonic Fraternity continues to provide for the charitable relief and
education of the citizens of the United States;
Whereas the Masonic Fraternity is deserving of formal recognition of their long history of
care-giving for the citizenry and their example of high moral standards; and
Whereas Freemasons have always revered and celebrated St. John's Day, June 24th,
as dedicated to their patron saints: Now, therefore, be it
Resolved, That the House of Representatives recognizes the thousands of
Freemasons in every State in the Nation and honors them for their many
contributions to the Nation throughout its history.

OBAMA LOBBYISTS

Irritated Obama
'Stares Down'
Reporter During
Press Corps Visit

When a reporter tried to quiz President

Obama on Thursday about a lobbyist
chosen for a top Defense Department job,
the president quickly became agitated.

http://www.foxnews.com/politics/first100days/2009/01/22/obama-suprises-white-house-presscorps-visit-briefing-room/

WASHINGTON -- President Obama paid a surprise visit to

members of the White House press corps Thursday evening when
he walked through their working area of the West Wing, but he
quickly became agitated when he was confronted with a question
by one of the journalists.
According to reports, when the Politico's Jonathan Martin asked
the president about his nominee for deputy secretary of defense,
William Lynn, Obama refused to answer, saying he was not there
to take questions.

"I came down here to visit. I didn't come down here -- this is
what happens. I can't end up visiting you guys and shaking hands
if I am going to grilled every time I come down here," the
president said.
Pressed further by the Politico reporter about his Pentagon
nominee, Obama turned more serious, putting his hand on the
reporter's shoulder and staring him in the eye.
"All right, come on," he said, with obvious irritation in his voice.
"We will be having a press conference, at which time you can feel
free to [ask] questions. Right now, I just wanted to say hello and
introduce myself to you guys -- that's all I was trying to do,"
Politico.com reported.
The situation came to a close when a cameraman in the room
interrupted, declaring: "I'd like to say it one more time: 'Mr.
President.'"
The nominee in question, William Lynn, is a former lobbyist for
defense contractor Raytheon, a pick Obama made in contradiction
to his much-heralded anti-lobbying rules.
Obama was willing to field lighter questions, though.
Yes, he's discovered the gym in the White House residence. No,
he hasn't played basketball yet on the outdoor White House court
because it's been too cold.
The president's walk-through came without notice, causing a bit
of a wild scene. Reporters started running toward him, wary of
missing a single word. When one reporter who hadn't spotted
Obama yet asked what everyone was rushing toward, another
one responded: "The big guy."

Obama made it to the back of the briefing room, in a narrow

hallway, where he shook hands.
"I've got to say, it's smaller than I thought," the president said as
he looked around for the first time.
He introduced himself to those whom he didn't already know from
the long campaign trail and said it would take a little while to
learn everyone's names.
The president then continued on, walking by the media outlets'
booths on the same floor.
Obama asked about the reasoning behind why certain media
outlets had work space where they did. When he got an answer
involving the intricacies of press corps protocol, Obama
responded: "This is worse than the Middle East here -- who's
sitting where and all that stuff."
As he walked through the area where journalists have lunch,
Obama noticed a pair of vending machines that dispense soda
and junk food.
"Looks like you have some healthy snacks, guys," Obama said.
Then he walked through the basement quarters, where several
other news outlets set up shop. He said that was smaller than he
expected too.
The Associated Press contributed to this report.

http://abcnews.go.com/http://abcnews.go.com/

Another Lobbyist Headed Into Obama

Administration
Leaves Critics Questioning the President's Commitment to
Changing Washington
By JUSTIN ROOD and EMMA SCHWARTZ
January 27, 2009
Despite President Barack Obama's pledge to limit the influence of lobbyists in his
administration, a recent lobbyist for investment banking giant Goldman Sachs is in
line to serve as chief of staff to Treasury Secretary Timothy Geithner.
Mark Patterson was a registered lobbyist for Goldman until April 11, 2008, according
to public filings.
Patterson first began lobbying for Goldman Sachs in 2005, after working as policy
director for then-Senate majority leader Tom Daschle. According to publicly filed
lobbying disclosure records, he worked on issues related to the banking committee,
climate change and carbon trading and immigration reform, among others.
Patterson's lobbying was first noted by the National Journal magazine.
Patterson is one of over a dozen recent lobbyists in line for important posts in the
Obama administration, despite a presidential order severely restricting the role of
lobbyists in his administration, the magazine reported.
The Obama administration's limitation on lobbyists isn't a direct ban. Lobbyists are
still allowed to be a part of the administration working on areas that they have not
lobbied on. But the potential appointment of Patterson and others raise questions
about just how much the Obama administration will be able to move away from the
revolving door model of business that has become so common inside the Beltway.
"Considering that Goldman was an early and large recipient of our TARP funding,
being pulled out of that really does effect his ability to be an effective chief of staff
for the treasury secretary," said Steve Ellis, president of the watchdog group
Taxpayers for Common Sense.
Patterson has spent most of his career in Congress. He served as special assistant
to Senator Daniel Patrick Moynihan from 1985-88. And following law school at
Catholic University, he worked as an attorney in private pratice for several years
before rejoined Moynihan's staff as legislative director. He then served as chief
counsel to the Senate Finance Committee and later served as policy director for
Daschle.

Chief of Staff Operates Behind Closed Doors, Hard for

Outsiders to Monitor, Watchdog Says
But even if he recuses himself from matters related to Goldman, there is little
outside oversight. The position of chief of staff is appointed by the secretary of
treasury and does not require Senate approval. And with Geithner's confirmation by
the Senate Monday, Patterson's appointment is all but completed. What's more is
much of how the chief of staff operates is behind closed doors, Ellis noted, and it's
difficult for outsiders to monitor.
A White House spokesperson declined to comment on "speculation" that Patterson
would be tapped, as several outlets have reported. A Goldman spokesperson
declined to comment and directed calls to the administration. Patterson could not
be reached for comment.
Criticism has also erupted over Obama's choice of William J. Lynn, a government
relations executive for defense contracting giant Raytheon, to be Deputy Secretary
of Defense.
The White House waived ethics restrictions that would have barred Lynn from
working on issues that could affect Raytheon. According to the Pentagon, Lynn
would still need approval from the Pentagon general counsel or Secretary Robert
Gates to do so.
These questions, said Craig Hollman of Public Citizen, show that there should be a
more transparent screening process in the Obama adminstration. "This is a brand
new ethics policy, so I think there are kinks."
Click Here for the Investigative Homepage.
Copyright 2009 ABC News Internet Ventures

http://abcnews.go.com/print?id=6735898

How Serious Are Treasurys

New TARP Lobbying
Limits?
by Sharona Coutts, ProPublica - January 28, 2009

While President Obama worked the Hill [1] yesterday, trying to get support on the now nearly
$900 billion [2] stimulus package, the Treasury secretary announced some measures to curb the
power of lobbyists [3] in determining how that other massive pile of money -- the Troubled Asset
Relief Program -- is divvied up.
The Wall Street Journal has both stories. The story about the stimulus package describes a freefor-all [4] that has, for example, "pitted the concrete and asphalt industries against one another,"
and has seen intense lobbying by the solar and geothermal power sectors, high-tech companies,
textile importers and what the Journal calls the "shoe lobby."
There's no mention of rules or restrictions on lobbying for stimulus money, although the
administration has issued strict limitations [5] on the "revolving door," through which lobbyists
move in and out of government employment and use those connections to pursue their clients'
interests.
Then there was yesterday's announcement by Treasury Secretary Timothy Geithner on new
lobbying restrictions for TARP money.
According to the Journal, "Treasury will have to certify to Congress that each investment
decision 'is based only on investment criteria and the facts of the case.'"
The changes will apply to the latest installment of the TARP bailout money [6], a total of $350
billion, which Congress released two weeks ago, but appear to come too late to apply to the first
portion of the money, which has already been disbursed.
This rule change comes after complaints from congressmen and from the Government
Accountability Office that the TARP lacks proper oversight and accountability [7] (PDF)
mechanisms. As we wrote yesterday [8], clearing up the TARP's muddle might do far more to
reduce lobbying pressures than seeking to bar lobbyist and lawmaker access.
While the new rules put some curbs on lobbyists, they are unlikely to shut special interests out of
the decision-making process.

Says the Journal:

The restrictions, however, will apply only to Treasury, not to the primary regulators who oversee
the banks and recommend which firms should receive government aid. As such, they may do
little to prevent lobbyists and politicians from seeking to influence the process. It's also unclear if
the restrictions will tamp down the growing practice of lawmakers lobbying regulators for funds
on behalf of certain banks.
It's hard to see how Treasury can guarantee that their decisions are based only on "investment
criteria and the facts of the case," when those "facts" and "criteria" have been filtered through
other agencies that are still open to lobbyists, or, indeed, the influence of congressmen such as
Reps. Barney Frank, Danny K. Davis and Luis Gutierrez, who have reportedly lobbied for banks
in their district to receive chunks of the bailout funds (those stories are here [9] and here [10].)
The Treasury has not released the actual rules yet, just general aims. The devil will be in the
details.
http://www.propublica.org/article/how-serious-are-treasurys-new-tarp-lobbying-limits-090128

Obama finds room for lobbyists

By KENNETH P. VOGEL & MIKE ALLEN | 1/28/09

http://www.politico.com/news/stories/0109/18128.html
President Obama promised during his campaign that lobbyists "won't find a job in my
White House."
So far, though, at least a dozen former lobbyists have found top jobs in his
administration, according to an analysis done by Republican sources and corroborated
by Politico.
Obama aides did not challenge the the list of lobbyists appointed to administration jobs,
but they stressed that former lobbyists comprise a fraction of the more than 8,000
employees who will be hired by the new administration. And they pointed out that before
Obama made his campaign-trail promise, he issued a more complete - and more
nuanced - policy on former lobbyists.

Formalized in a recent presidential executive order, it forbids executive branch

employees from working in an agency, or on a program, for which they have lobbied in
the last two years.
Yet in the past few days, a number of exceptions have been granted, with the
administration conceding at least two waivers and that a handful of other appointees will
recuse themselves from dealing with matters on which they lobbied within the two-year
window.
It would be more honest if they admitted they made a mistake and came up with a
narrower rule, said Melanie Sloan, executive director of the government watchdog
group Citizens for Responsibility and Ethics in Washington. Obviously, they cant live
with the rule, which is why they keep waving the magic wand and making exceptions.
Theyre saying one thing and doing another. Its why the public is skeptical about
politicians.
But another watchdog, Meredith McGehee of the Campaign Legal Center, praised
Obamas rules as a good starting place and urged patience in judging their efficacy.
Any good set of ethics rules has the opportunity for waivers, but if the waivers become
the rule, rather than the exception, then you have to look at whether the waivers are
being sought too frequently or whether theres a problem with the rule, McGehee said.
I dont think were at that point yet.
At the White House, spokesman Tommy Vietor insisted the president has been
consistent.
During the campaign, then-Sen. Obama put forth the toughest ethics and lobbying
reform policy in history, Vietor said, and now hes acting on it to reduce the influence of
lobbyists in Washington.
Here are former lobbyists Obama has tapped for top jobs:
Eric Holder, attorney general nominee, was registered to lobby until 2004 on behalf of
clients including Global Crossing, a bankrupt telecommunications firm.

Tom Vilsack, secretary of agriculture nominee, was registered to lobby as recently as last
year on behalf of the National Education Association.
William Lynn, deputy defense secretary nominee, was registered to lobby as recently as
last year for defense contractor Raytheon, where he was a top executive.
William Corr, deputy health and human services secretary nominee, was registered to
lobby until last year for the Campaign for Tobacco-Free Kids, a non-profit that pushes to
limit tobacco use.
David Hayes, deputy interior secretary nominee, was registered to lobby until 2006 for
clients, including the regional utility San Diego Gas & Electric.
Mark Patterson, chief of staff to Treasury Secretary Timothy Geithner, was registered to
lobby as recently as last year for financial giant Goldman Sachs.
Ron Klain, chief of staff to Vice President Joe Biden, was registered to lobby until 2005 for
clients, including the Coalition for Asbestos Resolution, U.S. Airways, Airborne Express
and drug-maker ImClone.
Mona Sutphen, deputy White House chief of staff, was registered to lobby for clients,
including Angliss International in 2003.
Melody Barnes, domestic policy council director, lobbied in 2003 and 2004 for liberal
advocacy groups, including the American Civil Liberties Union, the Leadership
Conference on Civil Rights, the American Constitution Society and the Center for
Reproductive Rights.
Cecilia Munoz, White House director of intergovernmental affairs, was a lobbyist as
recently as last year for the National Council of La Raza, a Hispanic advocacy group.
Patrick Gaspard, White House political affairs director, was a lobbyist for the Service
Employees International Union.
Michael Strautmanis, chief of staff to the presidents assistant for intergovernmental
relations, lobbied for the American Association of Justice from 2001 until 2005.

Obamas Illegal Foreign Contributions and (Possibly Rigged)

Lotteries
Obamas Creative Campaign Financing Adds Misuse of Tax Exempt Church Resources
by Bill Levinson
At a time when money from Washington lobbyists and special interests is
polluting the political process more than ever, the question for campaigns
isnt just whether they can compete financially its how they do it.

Obama campaign manager David Plouffe, E-mail of June 12 2007

We should indeed look at how they do it because this E-mail itself may have been an illegal
lottery. Furthermore, one of last years Dinner with Barack lotteries announced a winner
before the entry deadline, which suggests that not all participants had an equal chance to
win. Meanwhile, Pamela Geller of Atlas Shrugs reports that Obamas campaign accepted illegal
contributions from foreign sources. We finally have the matter of Obamas deliberate and willful
misuse of the United Church of Christs tax exempt resources to promote his candidacy. Yes, Mr.
Plouffe, how they do it should indeed be foremost in voters minds this year.
Obamas Arguably Illegal and Possibly Rigged Fundraising Lotteries
The following is not legal advice, but it is easily understandable. A lottery consists of the
following three elements:
(1) Payment of consideration (a donation to the Obama campaign)
(2) an element of chance (randomly determined winner)
(3) a prize (dinner with Barack Obama)

In most jurisdictions, lotteries are an illegal form of gambling, although there are sometimes
exceptions for raffles for nonprofit organizations, churches, and the like. The Obama campaign,
in fact, modified a similar lottery this year to allow entry without a donation after complaints
from an Minnesota law enforcement agency. David Plouffes E-mail of June 12 2007 said,
At a time when money from Washington lobbyists and special interests is
polluting the political process more than ever, the question for campaigns
isnt just whether they can compete financially its how they do it.

Thousands of people have given whatever they could afford even $5 to be part of
something big.
If you make a donation in any amount by 11:59 pm EDT tomorrow, June 13, you
could be one of four people chosen to dine with Barack. In about a month, you could sit
down and share your reasons for joining this campaign and your ideas for how to keep
the momentum building.

Right, Dave, how they do it in Obamas case consists of (1) payment of consideration (If you
make a donation in any amount), (2) an element of chance (you could be one of four people
chosen) and (3) a prize (dine with Barack)that is, a lottery that was quite possibly illegal in
most parts of the country, noting that this one did not offer a means of entering without making a
donation. In addition, Barack Obama signed his own name to another such lottery solicitation,
whose content suggests that it might even have been rigged.
Last week we started planning our second dinner, and on Friday evening at
6:42 pm, a woman named Dorothy Unruh of Lakewood, Colorado made a
donation.

Im pleased to announce that Dorothy will be one of my guests for the second dinner. You
could join us if you make a small donation before 11:59 pm tonight, July 31st:
Barack Obama, E-mail of July 31 2007
Is it usual to announce a lottery winner before the entry deadline? The fact that Dorothy
Unruh was selected before the entry deadline suggests that not all donors had an equal chance to
win.
Illegal Foreign Contributions
At a time when money from Washington lobbyists and special interests is
polluting the political process more than ever, the question for campaigns
isnt just whether they can compete financially its how they do it.

Obama campaign manager David Plouffe, E-mail of June 12 2007

How they do it in Obamas case also involves acceptance of campaign contributions from
foreign nationals (illegal) in excess of the $2300 individual contribution limit (also illegal) per
this brilliant article from Atlas Shrugs.
Not only did Obama not report this jihad cash to the FEC, despite what
theyve claimed, the Pali brothers have not received their jihad cash back.

In digging deeper into the illegal foreign campaign contributions from Palestinians,
Cathy came across these FEC letters. Obama knew these contributions were illegal and
Palestinian. He didnt report them. He took a page from his days as a commnity
organizer for the most corrupt political machine in America. Its what they do.
Bringing the worst in American politics to the national level.
It seems the FEC actually did their job. But the chosen One-bama is special and above
the law. he is a citizen of the world.

The article adds that the contributions came from Rafah GA, with a zip code of 972. There is
no Rafah, Georgia, but there is a Rafah in the Gaza Strip, whose country telephone code is
972. In addition, 972 cannot be the first three digits of Georgias zip code, because the 90000
series is on the United States West Coast. It seems that Obamas money came from
Palestinians, who are also manning phone banks to help his campaign.
Misuse of Tax Exempt Church Resources for Electioneering
At a time when money from Washington lobbyists and special interests is
polluting the political process more than ever, the question for campaigns
isnt just whether they can compete financially its how they do it.

Obama campaign manager David Plouffe, E-mail of June 12 2007

SAY it, David! Say it loud, and keep saying it! The question for campaigns isnt just whether
they can compete financially its how they do it, and your candidates creativity extends to
the willful misuse of tax exempt church resources to support his campaign.
The Internal Revenue Service has, and rightly in our opinion, cleared the
United Church of Christ of accusations that it violated its tax exempt status
by hosting Barack Obamas A Politics of Conscience. The IRSs letter to the
United Church of Christ cites the same points that we did: even though
Barack Obamas A Politics of Conscience contained campaign-related
content, the UCC did everything possible to prevent the Obama campaign
from misusing its resources for electioneering. It would therefore be
hardly fair to hold the United Church of Christ accountable for
Barack Obamas decision to break his word to his own church by
giving a speech that described what he will do if he is elected
President, as shown by the transcript of A Politics of Conscience,
and the IRS apparently came to the same conclusion.

For those unfamiliar with what happened, Barack Obama was to give a speech at the United
Church of Christs annual Synod in June 2007. Per UCC minister Davida Foy Crabtree in the
Hartford Courant
Our purpose in inviting Sen. Obama in the spring of 2006 long before he
was a candidate for the presidency was to ask him to address the
connection between his Christian faith and his public service, to speak to us
of the challenges for people of faith in the public square today. And he did so
with eloquence. As a prominent member of our church, his was a natural
invitation, just as the others were. To avoid any hint of endorsement or
promotion, our national officers and our denominational attorney
established clear understandings with Sen. Obamas office in
Washington. He readily agreed to all of them. We made it clear not

only to his campaign staff but also to our own synod delegates and
visitors that no advocacy or promotion of his candidacy would be
permitted.

In other words, the church told Obama explicitly that no advocacy or promotion of his campaign
would be permitted, and he and his staff said they understood and agreed to this. Obama then
wrote a speech (thus demonstrating premeditation and malice aforethought) that contained
numerous campaign promises, which he proceeded to deliver at the tax exempt event. This
promoted an IRS investigation of the church, and doubtless trauma for church officials who
feared disciplinary action against the church itself. As a narcissist who cares for no one but
himself, Barry did not even bother to tell the IRS that the fault was his and not that of his
church. He left it to the IRS to reach this conclusion itself.
At a time when money from Washington lobbyists and special interests is
polluting the political process more than ever, the question for campaigns
isnt just whether they can compete financially its how they do it.

Obama campaign manager David Plouffe, E-mail of June 12 2007

Thats right, Dave, its how they do it: probably illegal and possibly rigged lotteries,
illegal contributions from foreign sources, and misuse of tax-exempt church resources.
How they do it should tell voters everything they need to know about Barack Obamas
personal character, integrity, ethics, and maturity.
http://www.israpundit.com/2008/?p=1949

1. I strongly encourage all of you to read Dick Morris book entitled: FLEECED! I bought it
on sale at barnes and noble and it rocks! He writes: The ABU DHABI INVESTMENT
AUTHORITYa sovereign wealth fund with assets estimated To be as high as $875
billionjumped in and invested $7.5 billion in Citigroup. And one of Abu Dhabis
smaller funds, Mubadala Development Company, recently bought statkes in the Carlyle
Group and Advanced Micro Devices.Dubai based firms have bought Barneys, the
upscale clothing store; the Essex House Hotel (now Jumeirah Essex House) in New York
City; the Travelodge hotel chain; Loehmanns, the discount womans clothing store; and
Madame Tussauds, the legendary wax museum. The state of Dubai has a stake in
Daimler-Chrysler, the German car maker, and recently entered the gambling business
when it purchased a 10 percent stake in the MGM Mirage Hotel and casino in Las Vegas.
Through its purchase of the Doncasters Group, a British engineering firm, Dubai now
owns several plants in the U.S. that produce military equipment. It also holds a stake in
Airbus, the recent winner of a huge Pentagon contract. It has invested in HSBC, one of
the major banks hit hard by the subprime mortgage crisis. Dubai purchased a 20 percent
stake in Nasdaq..Bill Clinton is a partner with Sheikh Mohammad bin Rashid alMaktoum, the emir of Dubai, and the investor Ron Burkle of the Yucaipa Companies in a
global investment fund..Dubai has hired firms close to the Clintonssuch as the

Glover Park Group, where Hillarys campaign spokesman, Howard Wolfson, is a

partnerSheikh Hamdan bin Rashid al-Maktoum, was sued in a U.S. federal district
court in Miami for allegedly encouraging the enslavement of thousands of underage boys
to work as jockeys in his native country.
And Dick Morris rips Obamas future plans apart, showing how Obama plans to destroy
the United States through his policies! I encourage everyone to read Dick Morris book.
This is the best political book expose Ive read in a long time a must read for everyone
seeking to educate themselves on the aspirations of America and Israels enemies!
Comment by Michael Sunstar August 12, 2008 @ 7:41 pm

2.

[Some people on the right are tempted to run against Obama based on the statements of
his wife, his pastor, or the actions of his friends, one of whom is a former terrorist. As
troubling as these facts are, they do smack of guilt by association. But those who worry
about what Obama would do as President dont need to go that far. His own comments,
proposals, politics, and perspectives are more than sufficient to convince reasonable
Americans that he shouldnt be president.
Barack Obama will do all of the following: 1. Double capital gains on stock and real
estate sales 2. Increase FICA taxes by 14 points on all income over $100,000 3. Double
taxes on dividends 4. Expand the inheritance tax 5. Weaken the Patriot Act 6. Curb antiterror wiretapping 7. Extend health insurance to illegal immigrants 8. Give children of
illegal immigrants in-state tuition at state universities 9. Expand the number of
immigrants who can enter the U.S. 10. Weaken education standards 11. Expand health
insurance so drastically that it forces us to ration medical care, particularly to the elderly.
To win the election, John McCains campaign must focus not on character attacks but on
his opponents stated positions. It must not become mired in arguments based on ancient
history or on guilt by association. Obama can take these shots all day and not feel the
pain. He can survive them all. But his future planshis tax increases, watering down of
education standards, weakness on terrorism and other positionsare his true Achilles
heel.] Dick Morris & Eileen McGann in: FLEECED
Sunstar concurs with Morris & McGann and gives them a salute for a job well done in
their very informative research. Another great reference is THE REAL BARACK
OBAMA EXPOSED!
Comment by Michael Sunstar August 12, 2008 @ 9:55 pm
1. I am personally against ALL FISCAL POLICIES that ruin peoples lives. I dont like any
of the FINANCIAL PLANNING done on our behalf when it comes to education, health

care, energy, or housing. I think that THE SYSTEM has enslaved and entrapped ALL OF
US and this is not a Bush thing, a Rockefeller thing, a Rothschild thing, a KKR thing, a
Goldman Sachs thing, nor am I convinced that you can point at any POLITICIAN and
say, DEVIL! The DEVIL is in the details of FISCAL POLICY. All Republicans versus
Democrats means is HOW TO CREATE MONEY; HOW TO CREATE NEW MONEY;
HOW TO MOVE MONEY AROUND; AND WHERE TO GET EITHER THE NEXT
HONEST CASH FLOW OR DISHONEST CASH FLOW; MONEY is the ROOT of all
the evils between the parties; in order for us all to be healed: MONEY POLICIES HAVE
TO HELP INSTEAD OF HURT THE PEOPLES. Instead of pointing the middle finger at
all politicians, as all politicians deserve to be flipped off, we need to always remind them
and ourselves that we have all become slaves to the beast - and in order to break free of
the beast a great fire must be called down from heaven and consume the entire earth The Great Day of the LORD
Zep 1:14 The great day of the LORD h is near i near and coming quickly. Listen! The
cry on the day of the LORD will be bitter, the shouting of the warrior there.
Zep 1:15 That day will be a day of wrath, a day of distress and anguish, a day of trouble
and ruin, a day of darkness j and gloom, a day of clouds and blackness, k
Zep 1:16 a day of trumpet and battle cry l against the fortified cities and against the
corner towers. m
Zep 1:17 I will bring distress n on the people and they will walk like blind o men,
because they have sinned against the LORD. Their blood will be poured out p like dust
and their entrails like filth. q
Zep 1:18 Neither their silver nor their gold will be able to save them on the day of the
LORDS wrath. r In the fire of his jealousy s the whole world will be consumed, t for he
will make a sudden end of all who live in the earth.
So it is written upon THE WHOLE WORLD!
Comment by Michael Sunstar August 15, 2008 @ 2:23 am

S.U.B.M.I.S.S.I.O.N.
Center for Security Policy | Feb 02, 2009

http://www.centerforsecuritypolicy.org/p17860.xml
How appropriate that Barack Obama featured Aretha Franklin in his inaugural festivities since
her signature song is "Respect." Literally from the moment she finished belting out "My
Country Tis of Thee" on January 20, the new President has been conveying his "respect" the
Muslim world. Unfortunately, the way he practices it seems to be spelled S.U.B.M.I.S.S.I.O.N.
Several observers have noted in recent days that Mr. Obama's outreach to the Muslim world is
not only defensive and apologetic. It explicitly embraces a narrative that is factually erroneous
and deprecating to his own country.
For example, in his inaugural address, the President spoke of seeking "a new way forward [with
the Muslim world], based on mutual interest and mutual respect." He amplified this idea during
his first post-inaugural interview which was granted to a Saudi-owned network, al-Arabiya: He is
determined to "restore" the "same respect and partnership America had with the Muslim world as
recently as 20 or 30 years ago."
The problem with this formulation is that it misrepresents the more distant as well as the recent
past, even as it panders to those (abroad and at home) who would blame the United States for the
ills of the Muslim world. As Charles Krauthammer put it in his syndicated column last week,
over the past 20 years, "America did not just respect Muslims, it bled for them.It is both both
false and injurious to this country to draw a historical line dividing America under Obama from a
benighted past when Islam was supposedly disrespected and demonized."
The President also told al-Arabiya that: "My job is to communicate the fact that the United States
has a stake in the well-being of the Muslim world, that the language we use has to be a language
of respect. I have Muslim members of my family. I have lived in Muslim countries." Lest there
be any doubt about the priority he attaches to this messaging, Mr. Obama repeated the point.
"My job to the Muslim world is to communicate that the Americans are not your enemy. We
sometimes make mistakes. We have not been perfect."
For good measure, the new President described America as a country of "Muslims, Christians,
Jews" and others-- a presumably intentional upgrading of adherents to the faith of his father,
Islam, from the second place position he accorded them in his State of the Union address several
days before. (The rankings of both orderings obviously reflect something other than
demographics; there are far fewer Muslims than Christians in the United States and, according to
independent estimates, only half as many-- or less-- than Jews.)
Mr. Obama has also seriously mischaracterized our enemy as "a far-reaching network of violence
and hatred," averring "We cannot paint with a broad brush a faith as a consequence of the
violence done in that faiths name." Such statements deliberately ignore the animating and

unifying role in jihad of authoritative Islam's violent and hateful theo-political-legal program:
Shariah.
What is really worrying is that Mr. Obamas actions and rhetoric are almost certainly being
perceived by his target audience as evidence not of respect but of subservience-- precisely what
Islam (literally, "submission" in Arabic) requires of all of us, Muslims and non-Muslims, alike.
Consider the following:

Mr. Obama has made no secret of his desire to cultivate improved relations
with the mullahs of Iran, who have repressed their people and threatened
ours for thirty years. It appears that he started to do so months before his
election, as a senior campaign advisor, former Clinton Secretary of Defense
William Perry, met repeatedly with a representative of Iran's genocidesupporting president, Mahmoud Ahamadinejad. In recent days, Obama
special envoy for Afghan and Pakistan, Richard Holbrooke, hired as a senior
advisor Professor Vali Reza Nasr an Iranian expatriate with an appalling
record of shilling for the Islamic Revolutionary Iranian regime.

According to GeostrategyDirect.com, a newsletter published by ace national

security reporter Bill Gertz, "Diplomatic sources said Barack Obama has
engaged several Arab intermediaries to relay messages to and from al Qaeda
in the months before his elections as the 44th U.S. president. The sources
said al Qaeda has offered what they termed a truce in exchange for a U.S.
military withdrawal from Afghanistan. 'For the last few months, Obama has
been receiving and sending feelers to those close to al Qaeda on whether the
group would end its terrorist campaign against the United States,' a
diplomatic source said. 'Obama sees this as helpful to his plans to essentially
withdraw from Afghanistan and Iraq during his first term in office.'"

If surrender in Afghanistan, Iraq and Iran were not enough, upcoming opportunities for Mr.
Obama to exhibit American submission to Islam include: ordering U.S. participation in the UNs
"Durban II" conference-- thereby legitimating its Iranian-dictated, rabidly anti-Israel, antiAmerican, Holocaust-denying and "Islamophobia"-banning agenda; adopting the program for
undermining Israel promoted by longtime Friends-of-Barack Rashid Khalidi and Samantha
Power (the latter just appointed a senior National Security Council official); and reversing the
FBIs long-overdue decision to end its association with the Council on American Islamic
Relations (CAIR), a prominent front organization of the Muslim Brotherhood (whose stated
mission is "to destroy America from within.")
Whatever Barack Obamas intentions, the kind of "respect" he is exhibiting towards Shariahadherent Muslims will surely be seen by them as submission. And that spells only one thing:
D.I.S.A.S.T.E.R.
http://www.centerforsecuritypolicy.org/p17860.xml

Chavez providing aid to Hamas and Hezbollah

Posted by Nicole Ferrand

Monday, February 02, 2009 at 05:55 PM
A new book published in the United States alleges that Venezuelan President Hugo Chavez is an
active and open supporter of Hamas and Hezbollah, providing the Lebanese Shi'ite militia with
training for its fighters. In "The Threat Closer to Home: Hugo Chavez and the War Against
America," authors Douglas Schoen and Michael Rowan write that through his support of terror
organizations and by providing safe refuge for terrorists, Chavez constitutes a real, concrete
threat to the United States. Iran is long believed to have undertaken covert activity in South
America in concert with Hezbollah. The LA Times reported that the U.S. State Department
believes Iranian operatives were behind two terrorist attacks in Buenos Aires - the 1992 bombing
of the Israeli embassy in Buenos Aires and the 1994 bombing of the AMIA Jewish community
center building. Both attacks killed dozens of civilians and wounded scores more.
http://www.haaretz.com/hasen/spages/1058676.html

Obama White House A Lobbyist Haven

Thu, 01/29/2009 - 13:58

Judicial Watch Blog

President Barack Obama has repeatedly violated his innovative campaign promise to ban lobbyists
from his administration by hiring at least a dozen to high-profile positions, including several to his
cabinet.
Obamas famously coined lobbyists wont find a job in my White House rhetoric has
turned out to be a bad a joke, proving that, mainstream media adulation aside, hes no different than
most politicians. Broken campaign promises have for decades been par for the course among the
nations most famous elected figures and the 44th president evidently is no exception.
This week a nationally known political news publication confirms an analysis, conducted by
Republican sources, of lobbyists in Obamas White House. It reveals that at least 12 well-known and
influential lobbyists have top jobs in the administration. This may seem bizarre since Obama recently
formalized the lobbyist ban in an Executive Order, leading one Washington group to accuse the
administration of waving the magic wand to make exceptions to its own rule.
Among the registered lobbyists working in Obamas White House is an attorney general who lobbied
on behalf of a bankrupt telecommunications firm, a deputy defense secretary who lobbied for a
defense contractor, a domestic policy advisor who lobbied for liberal advocacy groups like the
American Civil Liberties Union and a director of intergovernmental affairs who lobbied for an extremist
Mexican La Raza group. The entire list includes several other cabinet members and is included in the
news story linked above.

http://www.judicialwatch.org/blog/2009/jan/obama-white-house-lobbyist-haven
http://www.barackobama.com/2007/11/03/remarks_of_senator_barack_obam_30.php

Next Steps in the Iran Crisis

Jan 11, 2007

By R Woolsey
http://www.centerforsecuritypolicy.org/p12444.xml?genre_id=1003
Below is the prepared statement of Center for Security Policy Advisory Council CoChariman R. James Woolsey's testimony before the House Committee on Foreign
Affairs on 11 January 2007.
Mr. Chairman, Representative Ros-Lehtinen, Members of the Committee, I was
honored to be asked to testify before you today on this important issue. By way of
identification I am currently a Vice President of the consulting firm, Booz Allen
Hamilton; I principally work in the field of energy. Earlier, during a twenty-two year
career of practicing law in Washington, I served in the federal government on five
occasions, holding Presidential appointments in two Republican and two Democratic
administrations, most recently as Director of Central Intelligence for two years
during the first Clinton administration. Today I am expressing solely my personal
views.
The Iranian Regime
In a sense, Mr. Chairman, the Iran Crisis now enters its 28th year. The totalitarian
and corrupt regime in Tehran does not differ in any fundamental way from that
which took power in the aftermath of the collapse of the Shahs regime in 1979.
It is true that beginning in the late nineties during the first year of the Khatami
presidency there was a period of a year or so when the optimistic could believe that
the forces of moderation might make substantial progress in Iran. But the
crackdown in the spring of 1998 on students and journalists, including the
imprisonment and killing of many, should have signaled clearly that these hopes
had been dashed. Khatami was always a creature of the regime. He had passed the
test of regime approval to be permitted to run for President, a test honorably failed
by dozens of more truly reform-minded and brave Iranian political figures. He made
no substantial changes in the nature of the regime during his time in office.
Now the camouflaged mantle of moderate has passed from Khatami to
Rafsanjani, who during his time in office was responsible for the execution and
imprisonment of a great many regime opponents, and the murder abroad of a large
number as well. If President Khatami might be compared to Prime Minister Kosygin
in the Soviet Union a man who was labeled moderate largely because he didnt

use excessive rhetoric and smiled more than his colleagues then Mr. Rafsanjanis
current characterization as a moderate or pragmatist might be compared to the
image of Mr. Andropov that the KGB successfully sold to much of the worlds
press: the evidence for Mr. Andropovs moderation was that he listened to jazz and
drank Scotch. Mr. Rafsnjani, for example, like President Ahmadinejad, has
threatened the destruction of Israel; has noted he is responsible for many deaths of
decent people; he is also famously corrupt.
The regimes threats to destroy Israel and, on a longer time-scale, the United
States are part and parcel of its essence. Recent official statements to this effect
represent not a shift in policy Irans regime has defined itself by its fundamental
hostility to the West, and especially Israel and the US, for nearly three decades
(Great Satan etc.) but rather a greater degree of public and explicit candor.
This fundamental hostility is now seasoned by a more pointed expression of the
views of the circle of fanatic believers around Ayatollah Mesbah-Yazdi in Qum,
including Ahmadinejad himself. This group expressly promotes the idea that largescale killing should be welcomed because it will summon the return of the 12th
Imam, the Mahdi, which in turn will lead to the end of the world. Recently the
Islamic Republic of Iran Broadcasting web site has begun to assert that the world is
in its last days and that, as the world ends, Jesus will appear with the Mahdi, as a
Shiite and as his lieutenant. This rhetoric is not limited to a small circle. Rafsanjani,
e.g., has utilized it as well. To us, of course, it sounds bizarre but we ignore such
ideology at our peril. As Enders Wimbush points out in the current Weekly Standard
Irans leadership has spoken of its willingness in their words to martyr the
entire Iranian nation, and it has even expressed he desirability of doing so as a way
to accelerate an inevitable, apocalyptic collision between Islam and the West . . . .
Those in decision-making roles in the Iranian regime who believe such things are
certainly not going to be very inclined to negotiate in good faith with us about Iraq,
their nuclear program, or indeed anything at all. Even deterrence is questionable,
much less arms control agreements.
The Iranian regime does not restrict itself to hideous speech. As President Bush
noted last night, the regime is assisting terrorists to infiltrate into Iraq and is
providing material support to attacks on the US. It is clear, for example, that the
increasingly effective Improvised Explosive Devices (IEDs) are not so improvised
any more many now include sophisticated shaped charges that penetrate
armor. And they are of Iranian manufacture. Over the years, directly and through
its controlled assets such as Hezbollah, Iran has killed and murdered hundreds of
Americans in Beirut, at Khobar Towers and large numbers of Israelis, French,
and Argentinians as well. Torture has often also been part of the picture.

The Persians invented chess and if I were to characterize Irans international

behavior today in those terms I would say that they are actively utilizing a number
of pieces. One might call their nuclear weapons development program their queen
their most lethal and valuable piece. No one should, by the way, discount their
intention to obtain nuclear weapons. The traces of highly-enriched (not just fuelgrade) uranium, their deception, their heavy water plant and other indicators brand
their program as one designed to develop nuclear weapons even in the absence of
considering their rhetoric about destroying Israel and ending the world. The Sunni
states of the region have become extremely alarmed at the Iranian regimes
nuclear weapons program and six of them, including Saudi Arabia and Egypt, have
recently announced their intent to move toward nuclear programs themselves,
allegedly solely for electricity generation. t seems remarkable that six states,
several of them with substantial reserves of oil and gas, would simultaneously
determine that these reserves would be inadequate for their energy needs and that
adequate electricity can only be obtained by their simultaneously moving to develop
nuclear power. What has in fact, of course, happened is that Iran has now begun a
Shiite-Sunni nuclear arms race in this volatile region.
I do not believe that any degree of international disapproval -- or sanctions such as
the tepid ones that can be obtained through the UN process in the face of Russian
and Chinese opposition to strong ones will lead this regime to abandon its nuclear
weapons program. And even if it should be two-to-three more years before Iran
could have enough fissile material through the operation of its own centrifuges to
fashion an entirely home-built nuclear weapon, one must not forget its coconspirator North Korea. North Koreas principal exports today are counterfeit
American currency, heroin, and ballistic missile technology (the Iranian Shahab and
the North Korean No Dong and Taepo Dong essentially constitute a joint missile
development program). Why would North Korea refrain from selling Iran either
fissile material or a crude nuclear weapon? Either is easily transported by air. Such
a purchase would substantially shorten the time before Iran could have a nuclear
weapon.
Iran moves four chess pieces of lesser value from time to time in part to keep the
US and Israel off balance, in part to protect their nuclear queen: Hamas, Hezbollah,
and Moqtadh al Sadrs forces in Iraq might be said to be pawns; Syria perhaps rises
to the level of rook, since it is a nation-state and has a mutual defense treaty with
Iran. It is of no particular importance to the regime that the Alawite Syrian regime
needed special Iranian theological dispensation to be regarded as part of Shiite
Islam nor that Hamas is Sunni. The Iranian regime, going back to the training of
the very Shiite Revolutionary Guards in the early seventies in Lebanon by Yasser
Arafats secular Fatah, is quite willing to work with terrorist organizations, including
al Qaeda, that have all sorts of different ideological DNA. In recent years this has

included visits with and even mutual travel by Ahmadinejad with Venezuelas Hugo
Chavez.
Some believe that Shiites will not cooperate with Sunnis, or either with secular
groups that, e.g., there could have been no collaboration of any kind by secular
Baathist Iraq or Shiite Iran with Sunni al Qaeda. Seventy years ago it was the
conventional wisdom was that Communists and Nazis would never cooperate, and
that was largely true until the Stalin-Hitler Pact. The Iranian regime doesnt just
appreciate but more or less lives the old Middle Eastern saying: Me against my
brother. Me and my brother against our cousin. Me, my brother, and our cousin
against the stranger.
Some Suggested Courses of Action
Given the nature of the Iranian regime, what should we do?
I agree that this is a difficult matter and that there are no easy answers. But since I
am convinced that the Iranian regime is fundamentally incorrigible, and since I am
not yet ready to propose an all-out use of military force to change the regime and
halt its nuclear program, in my judgment we should opt for trying to bring about,
non-violently, a regime change. I admit that the hour is late since we have wasted
much time trying to engage and negotiate with the regime, and I understand that
in the context of an effort to change the regime without using force the effort could
get out of hand. Yet I am convinced that the least bad option if for us to state
clearly that we support a change of regime in Iran because of the irremediable
theocratic totalitarian nature of the current regime as it has been demonstrated
over nearly three decades, together with its interference with the peace and
security of its neighbors currently especially Iraq and Lebanon and its nuclear
weapons program. I also believe that restiveness among Iranian minorities Arab,
Kurdish, Azeri, and Baluch and the sullen opposition of many young people
indicate that there is some chance of success in stimulating regime change. In a
poll taken at the behest of the Iranian government some three years ago over 70
per cent of those polled said that they wanted improved relations with the US. The
Iranian government, of course, imprisoned the pollsters.
To implement this policy I would suggest that we begin by rejecting the
recommendation of the Iraq Study Group (ISG) that we should try to engage [the
Iranian regime] constructively, i.e. seek to negotiate with them. As Senator John
Kyl and I wrote just over a month ago in an open letter to the President (in our
capacities as Honorary Co-Chairmen of the National Security Advisory Council of the
Center for Security Policy) opening negotiations with Iran, and Syria, would
legitimate those regimes, embolden them and their affiliated terrorist groups, help

the Iranian regime buy time for its nuclear weapons program, create the illusion of
useful effort and thus discourage more effective steps. We added that no regional
conference should take place without including Israel. I would point out that the
able analyst of these matters, Kenneth Pollack, in his book The Persian Puzzle
(2004) sets it out clearly. Iran is not really interested: ...Iran is simply not ready
for a meaningful relationship with the United States...From Americas side, our
dislike of this regime should not prevent the conclusion of a comprehensive
settlement of our differences, but from Irans side it has and it likely will for quite
some time... (pp. 396-97).
Second, we should indeed engage, but with the Iranian people, not their
oppressors.
Along the lines of recommendations made a year ago by the Committee on the
Present Danger (which I co-chair with former Secretary of State George Shultz),
and by Iran experts such as Michael Ledeen, we should target sanctions travel
and financial on the Iranian leadership, not on the Iranian people, and draw a
sharp line between them. One possibility in this regard is to seek to bring charges
against President Ahmadinejad in an international tribunal for violation of the
Genocide Convention in calling publicly for the destruction of Israel. Our precedent
would be the charges brought against Charles Taylor while President of Liberia for
crimes against humanity before a special international tribunal in Sierra Leon.
Irans protectors in the United Nations would doubtless block the establishment of
such a tribunal, but clarity and principle have a force of their own Natan
Sharansky and other Soviet dissidents then in the Gulag have told us of the
electrifying effect of President Reagans declaration that the USSR was an evil
empire.
We should also engage in ways similar to those techniques we used in the 1980s to
engage with the Polish people and Solidarity -- by communicating directly, now via
the Web and modern communications technology, with Iranian student groups,
labor unions, and other potential sources of resistance.
We should abandon the approaches of Radio Farda and the Farsi Service of VOA and
return to the approach that served us so well in the Cold War. Ion Pacepa, the most
senior Soviet Bloc intelligence officer to defect during the Cold War (when he was
Acting Director of Romanian Intelligence) recently wrote that two missiles brought
down the Soviet Union: Radio Free Europe and Radio Liberty. Our current
broadcasting does not inform Iranians about what is happening in Iran, as RFE and
RL did about matters in the Bloc. Privately-financed Farsi broadcasts from the US
follow the RFE-RL model to some extent, but exist on a shoestring. Instead we
sponsor radio that principally broadcasts music and brief world news, and television

that, I suppose seeking a bizarre version of balance, sometimes utilizes

correspondents with remarkable views: one VOA correspondent, on another
network, last year characterized the arrest in the UK of 21 individuals accused of
plotting to blow up transatlantic airliners with liquid explosives as a conspiracy
against Islam by the US and alleged that the US and the UK fabricated the plot to
deflect attention from Hezbollah victories. (Richard Benkin in Asian Tribune Aug.
12, 2006, vol. 6 no. 41.)
Our current broadcasting is a far cry from RFE and RLs marvelous programming of
news, cultural programs, investigative reporting (in the Eastern Bloc), and satire.
(As an example of what could be done with satire I have attached to this testimony
an article published some months ago by me and my family about one, admittedly
quite unorthodox, possibility.)
Finally Irans economy is driven by oil exports. This leaves it open to several
measures. Although Iran has reaped substantial financial rewards from todays
high oil prices we have begun to have some effect on its oil production by our
campaign to dry up its oil and gas development. The Iranians are very worried
about this. Deputy Oil Minister Mohammed Hadi Nejad-Hosseinian recently said in
an interview that:
[i]f the government does not control the consumption of oil products in Iran....and
at the same time, if the projects for increasing the capacity of the oil and protection
of the oil wells will not happen, within ten years there will not be any oil for export.
(Daneshjoo publishers, Current News, article 9303.)
At the appropriate time we could move toward a step that, although drastic, is
potentially very effective relatively quickly namely cutting off Irans imports of
refined petroleum products (Iran has built no refineries in many years and must
import around 40 per cent of its gasoline and diesel fuel).
And finally, by moving toward technology that can reduce substantially the role of
oil in our own economy and that of the worlds other oil-importing states, we can
help deprive oil exporters Iran, Saudi Arabia, Russia, Venezuela, and others of
much of their leverage in international affairs. As Tom Friedman of the NY Times
puts it, the price of oil and the path of freedom run in opposite directions. The
attached op-ed piece of mine, published in the Wall Street Journal December 30,
notes the possibility of plug-in hybrid vehicles soon making it possible for
consumers to get around 500 miles per gallon of gasoline (since almost all
propulsion would come from much less expensive electricity and renewable fuels,
the latter mixed with only 15 per cent gasoline). This may seem an extraordinary
number. But when General Motors last Sunday joined Toyota in the plug-in hybrid

race to market and unveiled its new Chevrolet Volt, one of its executives used a
figure of 525 miles per (gasoline) gallon. Five hundred and twenty-five miles per
(gasoline) gallon should give Minister Nejad-Hosseinian and his colleagues a bracing
degree of concern.

Senator Kyl on nuclear deterrence

http://www.centerforsecuritypolicy.org/p17782.xml?genre_id=1003
Center for Security Policy | Oct 20, 2008

Since the end of the Cold War, America's once-formidable nuclear deterrent capability has
suffered from total neglect stockpiled weapons have remained untested for seventeen years,
program management and supporting infrastructure have been allowed to atrophy, and there is
virtually no individual left who has firsthand knowledge of or involvement with testing a nuclear
weapon.
The Center for Security Policy maintains that at a time when familiar nuclear rivals like Russia
and China continue to assert their military reach, while rogue countries such as Iran, North
Korea, and Syria seek to acquire and perfect a nuclear capability, the United States cannot afford
to shut down unilaterally its nuclear deterrent. The Center has therefore taken the lead in forming
the New Deterrent Working Group, an informal coalition of national security and nuclear
weapons experts who seek to inform lawmakers and the public about the need for the United
States to maintain a nuclear deterrent that is both credible and effective.
'Champions of National Security' in the Senate has been Arizona Senator Jon Kyl. Since arriving
in Washington, Senator Kyl's guidance on issues crucial to America's military deterrent
capabilities has embodied the Reaganite principle of 'peace through strength.' The Center for
Security Policy could not agree more, and salutes the Senator's leadership.
Below are his remarks at the George C. Marshall Institute, which were delivered on September
15 at the Institute's annual dinner in Washington, D.C.
From the Marshal Institute's press release:
Sen. Kyl spoke of "an emergency that faces the United States government ... which has too long
been ignored, primarily by the U.S. Congress -- nuclear deterrence."
After noting why a nuclear deterrent remains a significant element of U.S. security, Sen. Kyl
reviewed the "systemic problems" facing the management of America's nuclear arsenal as well as
the deteriorating condition of the nuclear weapons complex, which jeopardizes our ability to
refurbish the existing nuclear arsenal to maintain its vitality and reliability. The Senator also
noted issues associated with aging delivery vehicles and warheads, noting that "the legacy
stockpile does not possess many of the safety features a modern design would include, and these
legacy weapons have capabilities for detonation-yield and accuracy that are not aligned with
today's post-Cold War needs."
"The bottom line is that the nuclear genie is out of the bottle and nobody is ever going to stuff it
back in, in spite of their good intentions or the audacity of hope or any other kind of slogan."

Remarks of the Honorable Jon Kyl at the George C. Marshall Annual Awards Dinner,
September 15, 2008
Senator Jon Kyl: Thank you very, very much. I appreciate the fact that this is a very serious
group. As a result, I am going to speak seriously this evening. I realize that I am all that stands
between you and dinner, but I know that because you take these issues seriously, this will only
whet your appetite more, let's put it that way. Ordinarily I would probably talk about space
security or missile defense at a group like this, but this evening I am going to change the subject,
because frankly of an emergency that faces the United States government. It is an issue which
has too long been ignored, primarily by the U. S. Congress nuclear deterrence. What I hope to
convince you of this evening is that it is an emergency on which we need to take immediate
action.
First let me congratulate Dr. Bruce Ames of the University of California for receiving the George
Marshall Institute Founders' Award, which is well deserved. Now let me begin by discussing why
I believe that the U.S. nuclear deterrent remains important and relevant. There are three primary
reasons why. You have all heard or read the comments by four of our elder statesmen first
published in The Wall Street Journal, Secretaries Perry, Shultz and Kissinger and Senator Nunn,
who have been urging certain steps because they would like to move toward a world that is free
of nuclear weapons. These gentlemen are primarily motivated by a concern about the potential
that terrorists may be able to acquire these weapons and cause havoc in the future. Many,
including some of the nuclear freeze movement friends, have taken the call of these leaders to
urge that a world without weapons is actually closer than these authors believe and to oppose
even modest efforts to keep our nuclear deterrent reliable and capable, let alone modernize it.
Some in the nuclear freeze movement have even invoked the name of Ronald Reagan. I take that
personally and so in looking at what Ronald Reagan actually said, of course it is true that he
wished for such a world, just as Secretaries Schultz and Kissinger, for example, do. But not
where the U.S. alone is disarmed. He understood that U.S. national security relied on "making
sure any adversary who thinks about attacking the United States... concludes the risks to him
outweigh any potential gains. Once he understands that, he won't attack. We maintain the peace
through our strength; weakness only invites aggression."1 That was what Ronald Reagan really
believed.
[More]As I said, there are three key factors which make deterrence as important now as it was
during the Cold War, albeit for different reasons. First, other states are modernizing their nuclear
weapons and the United States is not. The six states are, of course, our allies Britain and France,
and those countries that do not have our best interests at heart, China and Russia, and the other
two states are Pakistan
and India. As to the most capable of these states, Secretary of Defense Gates noted, "It seems
clear that the Russians are focused as they look to the future more on strengthening their nuclear
capabilities. So to the extent that they rely more and more on their nuclear capabilities as
opposed to what historically has been a huge Russian conventional military capability, it seems

to me that it underscores the importance of our sustaining a valid nuclear deterrent, a modern
nuclear deterrent."2 Of course, failure to recognize the reality of this for countries like China will
only encourage them to attempt to become a peer competitor to the United States, exactly what
Ronald Reagan was warning against.
The second reason why the deterrence still matters is that it deters attacks. Our deterrence still
provides protection from nuclear, biological and chemical weapons attacks by states, more of
which possess these capacities than did at the end of the Cold War. In addition to the nuclear
states, rogue states like North Korea, Iran and Syria either have or are working to obtain weapons
of mass destruction. Our own spy satellites just last week identified sites in Iran thought to be
used for covert nuclear production, including potentially weaponization. 3 On top of this are new
reports that, according to the IAEA, Iran has removed 40 to 60 tons of uranium from its main
production facilities, which is enough to make five or six bombs.4 Add to that, the revelations of
the extent of the nuclear smuggling ring run by A.Q. Khan. Nobody knows how far that reached,
but we do know that nuclear weapons technology has been available for purchase. The IAEA
recently acknowledged "large gaps in investigators' understanding of the smuggling ring, raising
concerns that Khan's nuclear black market may have had additional customers whose identities
remain unknown."5
The third reason for our deterrent is that it would prevent a cascade of proliferation because of
the nuclear umbrella that the United States provides for over thirty-one countries, including
many with the technology and resources for the development of nuclear deterrence on their own.
The unilateral arms controllers have the logic of proliferation exactly backwards when they
suggest that it is America's possession of nuclear weapons technology that drives proliferation. It
is exactly the opposite. For example, the first thing that the Japanese government did after the
North Korean detonation in 2006 was to call Secretary Rice to get a public declaration that the
United States continues to extend its protective nuclear umbrella over Japan.
Recently, General Chilton, the commander of U.S. Strategic Command noted that "we have
reduced our deployed weapons from...10,000 to [Moscow Treaty levels of between] 1,700 to
2,200. Did that discourage Iran? Did that discourage North Korea? Did that discourage
Pakistan?"6 Of course, the answer is no. General Chilton's conclusion is right on: "failing to
sustain our deterrent and failing to sustain our umbrella will encourage proliferation around the
planet."7 So the U.S. nuclear deterrent remains critical to our national security. As long as others
have or are attempting to acquire these weapons and nuclear weapons states are growing and
modernizing their stockpiles, the U.S. must maintain our nuclear deterrent. The corollary is, as
long as we have it, we must maintain it. What is the state of our deterrent today? We used to
maintain a very robust nuclear weapons complex. It was able to quickly fabricate large numbers
of weapons to respond to the constantly changing global threat. It regularly tested weapons and
designed new generations of weapons and we produced them every fifteen to twenty years. The
result was a nuclear complex workforce with the best possible training and skill set. None of that
exists today. As a result of decades of neglect, the nuclear weapons complex consists of buildings
and equipment that have been used since the Manhattan Project in many cases, are over-used,
obsolete, and, in many cases, are simply falling down from age.

General Chilton described the situation this way, "the U.S. has effectively eliminated its nuclear
weapons production capacity and allowed its infrastructure to atrophy."8 This is not the kind of
thing that you hear on the evening news, and I dare say that most Americans are unaware of the
degree to which this essential capability has atrophied to the point of essential nothingness. Even
though our stockpile has shrunk to a quarter its size from the Cold War, when we could turn out
about 3,000 warheads a year, today we can refurbish only about ten weapons a year now.9 And
that is refurbishing. The head of the National Nuclear Security administration Thomas
D'Agostino described the consequence of this status quo: "currently, if we found a major systemwide problem in the stockpile... we have insufficient capacity for a timely response."10
For example, what would we do if a significant problem were found in the thirty-year-old W-76
warhead? Thirty years old that is older than most of my staff members! Hundreds if not
thousands of these warheads are deployed on our strategic submarines today. If we can only
refurbish ten weapons per year, we could be in the position of losing, without replacement, the
most survivable leg of our triad. So what of our deterrent then? The Chairman of the Joint Chiefs
of Staff Admiral Mullen noted that there is little time to waste to invigorate our deterrence, when
he acknowledged recently that the U.S has accomplished little in this area since the 1980s,
mostly because the experts in nuclear deterrence are simply not in the business anymore and no
one was mentored to replace those experts.11 Due to the expense of maintaining this decaying
infrastructure and because of a decline in the workload it can support, the national labs and
weapons manufacturing facilities have shed thousands of their workers. These problems will
hamper even maintaining the current weapons program, much less the decision to embark on a
modernized weapon. So the nuclear complex is the first problem.
The warheads themselves are the second problem. The last new warhead design to enter into
service was in 1988 and the U.S. has not funded a modernization of the stockpile since then.
Many have grown complacent about nuclear weapons and that includes people in the military
and the policymakers in Washington. These are incredibly complicated devices, essentially the
most complicated and dangerous ever invented by man. They are constantly in flux. As General
Chilton has described it, "they are physics experiments when used, but they are chemistry
experiments every day they sit on the shelf." Many of you know this. They are literally decaying
as we speak and the heat they generate affects the components of the weapons every day. And
yet, we are just letting them sit there without the capability of doing anything about it. In
addition, when they were originally designed, the Defense Department had different needs and
different expectations for their uses. As a result, the legacy stockpile does not possess many of
the safety features a modern design would include, and these legacy weapons have capabilities
for detonation-yield and accuracy that are not aligned with today's post-Cold War needs.Now we
didn't want to test these weapons, even though we are not precluded by law from doing that
because the Comprehensive Test Ban Treaty was defeated. So we decided to do two things to try
to respond to the status quo. First of all we developed something called the Stockpile
Stewardship Program, under which computers would simulate testing and hopefully enable
annual certification of the stockpile, and eventually, the Reliable Replacement Warhead (RRW)
to actually supplant existing warheads, the first comprehensive, soup-to-nuts redesign of a
nuclear weapon since before the end of the Cold War. And all of this, of course, without testing.
According to recent testimony by the director of one of the national labs, "the basic tenets of the

Stockpile Stewardship Program are at risk." This same lab director noted that it is becoming
increasingly difficult to make the annual certification about the reliability of the stockpile.
As to the RRW, Congress won't fund it, so we are spending significant resources to attempt to
troubleshoot problems on weapons that were only designed to be deployed for fifteen to twenty
years. Meanwhile, the mainstay of our deterrent, the submarine-based W-76, built thirty years
ago as I mentioned, is twice beyond its design-life. As a consequence, each time we discover a
problem in our legacy weapons, which all were intended to be retired by now, we have changed
the weapon beyond its original design, in many cases because the components aren't even
available any more, they are so old-fashioned. Obviously this introduces additional uncertainty;
they haven't been tested and we don't know if substituting for the original may still work.
The third problem, in addition to the infrastructure and the warheads themselves, is the fact that
the Defense Department has been plagued with its own systemic problems which culminated in
the high profile termination of the Secretary of the Air Force and the service's Chief of Staff. An
example is the Minot incident, where six live nuclear warheads were mistakenly loaded onto a B52 and flown from North Dakota down to Barksdale Air Force Base in Louisiana. After that was
news that the Air Force had mistakenly shipped nuclear missile components the fuses to
trigger detonation of nuclear warheads to Taiwan and did not realize the mistake for eighteen
months.12 These are symptomatic of a serious problem. As a result of these incidents, the Air
Force's senior leadership was replaced and a task force led by former Secretary of Defense Dr.
James Schlesinger was appointed to review the nuclear mission as handled by the Air Force. In
addition, there will be a follow-on report that will examine the nuclear mission across the
Department of Defense.
The task force in its first phase report recognized the atrophy of the nuclear mission since the
Cold War and stated the "nuclear mission must be reinstituted as a continuing responsibility of
the Air Force"13 Why was this important? The Schlesinger task force was clear that the Air
Force in particular needs to realize that it will have this mission for some time to come and it
needs to take care of it.
Unfortunately, over the past two decades there has been a declining focus on the nuclear mission
both from Administrations and senior Pentagon leadership. The services have not been willing to
pay the bills related to keeping deployed a nuclear triad, preferring instead to invest in other
priorities that are nearer and dearer to their hearts. General Chilton, who is commander of the
combatant command with overall responsibility for the nuclear deterrent mission, succinctly
summarized the result of this lack of focus when he said, "we have a bunch of delivery platforms
and weapons that are not reliable, safe, and secure."14
Across the board, every major leg of our triad from B-52s to F-15s and F-16s to our SSBNs and
ICBMs is in need of replacement or significant modernization. The B-52 first entered into
service in 1954. Given that the Air Force still doesn't have a plan to replace it, it has been said
that the mother of the last B-52 pilot has yet to be born. And yet this clearly is part of our
strategic weapons. Or look at the Minuteman III missile, which first entered into service in 1970.
We view that as a modern missile, don't we? The Air Force is trying to figure out how and
whether this missile can be kept in service until 2030. This epitomizes the systemic decline that

has developed. It should now be clear that a failure to modernize our nuclear weapons complex
and the weapons themselves, including the delivery systems, not only threatens the continuing
reliability and credibility of the U.S. nuclear deterrent, it threatens the basic tenets of our national
security strategy since the end of the Cold War. How can this decline be halted and reversed?
Congress created the Commission on the Strategic Posture, led by Secretaries Perry and
Schlesinger, in the Defense Authorization Act last year. The idea was to examine and make
recommendations relating to the longterm strategic requirements for U.S. national security, and
that included nuclear deterrent, missile defense, space security, etc. But by the time this
Commission releases its report (hopefully by next April) and by the time the next Administration
has been able to appoint its key personnel, consider the report, and draft a budget that reflects the
recommendations of that report, and Congress then responds to that, those of you who
understand the timing here on Capitol Hill realize all of a sudden we are talking about two years
before the recommendations of that Commission could actually be implemented in terms of
funding requests.
Based upon what I have said, I hope it is clear that it would be irresponsible to wait the two years
to try to deal with this emergency. So I believe that Congress should take some action right now
to turn the situation around. The first thing, obviously, is to fund the modernization of our
nuclear weapons infrastructure. Just to give you one example of where that could be done, with
as little as $300 million we could begin the construction of facilities like the Chemistry and
Metallurgy Facility Replacement Project (CMRR), which will replace aged infrastructure and
enable us to have a modern ability to check for problems associated with the aging stockpile and
potentially develop the next generation of weapons for the U.S. nuclear deterrent. While the
whole complex is in need of comprehensive reconstruction, I think it is safe to say that
accelerating the construction of the CMRR is the highest stopgap priority at this time. We talked
about the nuclear weapons themselves. Obviously we have priorities there as well for research
and engineering and development. Then I would note, since I started by referring to what had
been written by Secretaries Schultz and Kissinger and Perry and Senator Nunn, I have been in
contact with them about what they believe we ought to be doing. I can report to you that at least
in recent conversations with Schultz and Kissinger, they appreciate the problem that we are
talking about here this evening and support the immediate-term refurbishing and rehabilitation of
our system on the same principle that I mentioned earlier, that is, as long as you have them, you
have to take care of them. Secretary George Shultz recently wrote a letter to me on behalf of
himself, Secretaries Kissinger and Perry and Senator Nunn, citing one example: "recent layoffs
[he is talking about weapons labs] raise a concern about the continuing strength of the [nuclear
weapons] program" and "the need for funding adequately the flow of scientists to the labs."15
What we are proposing here would help to meet that requirement.
By modernizing the nuclear weapons complex and replacing these Cold War legacy weapons
through programs like Reliable Replacement Warhead, our nuclear weapons workforce can be
put back to work and we can get new scientists who are skilled in the actual working with the
weapons and the skills of almost seven decades could be preserved for this most critical mission.
The technical achievements of the Stockpile Stewardship Program, while significant, are
nonetheless at the end of the day a simulation. They are not working with the actual weapons
themselves. I am sure there is nobody in this room would want to go under the knife of a surgeon
who had never actually performed surgery outside of a computer simulation. When you stop to

think about the complexity of the use of the weapons, ask yourself whether we should put the
security of the United States in any less serious way. Simulation has been great, but it is no
substitute for hands on work, whether addressing urgent needs with the W-76 or B-61 weapons
or proceeding with the RRW, none of which is possible without additional budgetary resources
and scientists who can finally get their hands on these kinds of programs.
A third example is funding the Reliable Replacement Warhead itself. By moving forward with
that, we cannot only stop this hemorrhaging of skilled technicians and scientists, but can address
the ongoing accumulation of technical anomalies within our stockpile, the inevitable result of
keeping these weapons in service long beyond their service life. The highest priority is to provide
stopgap spending for at least the Phase 2a studies this year relating to the RRW. That is about a
$66 million cost. Clearly it is within our ability to fund it, if we want to do that.
Finally, to recover the importance of the nuclear mission within the Department of Defense and
to maintain the critical delivery systems that constitute the three legs of the triad itself, we must
do planning, programming, and budgeting for follow-on nuclear weapons delivery systems,
which would include cruise missiles, warplanes, ballistic missiles, and strategic submarines. We
can begin this process now with a relatively modest stopgap investment of approximately $200
million. These are just the top-priority items and I am giving you one example in each of the
areas to illustrate that if we act now, we can make a significant difference to stop this downward
spiral. It doesn't begin to pay for everything, but who on watch today can deny that we need to
step up and try to deal with this problem? I have been working with several of my colleagues in
the House and Senate and with the Administration including the Vice President, the Secretaries
of Defense and Energy and others to determine how we should proceed, what programs are the
highest priorities and how to get the funding. I believe that we have the support of immediate
funding of these very same leaders who have talked about an ultimate nuclear-free world, but
who appreciate the need to take care of what we have. So there should be broad-based support
for this kind of activity, if we can get it done by the U.S. Congress. That won't be easy. The
ability to do that will depend upon good will and the legislative vehicles to accomplish that result
yet this year. I hope, however, that we can find a way to accomplish that result because it is so
important. The bottom line is that the nuclear genie is out of the bottle and nobody is ever going
to stuff it back in, in spite of their good intentions or the audacity of hope or any other kind of
slogan.
Remember, President Reagan correctly warned, "We can't afford to believe that we will never be
threatened. There have been two world wars in my lifetime. We did not start them and, indeed,
did everything we could to avoid being drawn into them. But we were ill prepared for both. Had
we been better prepared, peace might have been preserved." That was the charge that you have
undertaken as supporters of a very serious Institute which thinks seriously about important
problems that confront us. Neither you nor I have the luxury of backing away from this problem,
because we know better and we have the ability to try to do something about it. So my charge to
you tonight is to do the same thing I did when I examined these facts, talked to the experts and
came to the conclusion that in my watch, I had to do something to turn this dangerous state of
affairs around. I hope you will join me in any way that you can do so in achieving this objective
for our future, because it literally depends upon it. I thank you for the opportunity to speak here.

OBAMADAMNATION

Obama's "Screwed Up" Presidential Appointments

http://www.judicialwatch.org/weeklyupdate/2009/06-obamascrewed#anchor2
This has been a rather inauspicious start for the new president, at least as far as his
presidential appointments are concerned. This week, Barack Obama was forced to
admit that he "screwed up" on a couple of his key appointees, most notably former
Senator Tom Daschle, Obama's pick to run the Department of Health and Human
Services. Daschle stepped down on Tuesday after news broke that he failed to pay
nearly $150,000 in back taxes. (Daschle did ultimately make good on the bill last
month, but it was too little too late.) Another appointee to be first federal
"performance" officer, Nancy Killefer, also withdrew because of an old tax lien.
Here's the scoop according to The Associated Press:
Barack Obama on Tuesday gave up his nomination fight for Tom Daschle and a
second high-profile appointee who failed to pay all their taxes, fearing ugly
confirmation battles that would undercut his claims to ethical high ground and
cripple his presidency in just its second week. "I screwed up," he declared...
..."I'm frustrated with myself, with our team. ... I'm here on television saying I
screwed up," Obama said in an interview on NBC's "Nightly News with Brian
Williams." He repeated virtually the same words in several other interviews."
What was the screw up? Was it that Obama and his team defended the nonpayment of taxes as no big deal, that he didn't vet his nominees, that he let tax
cheat Geithner continue to serve as head of Treasury?
As I pointed out back in November, tax scandal aside, Daschle was a terrible
choice to serve as Secretary of Health and Human Services. After losing his last
campaign and leaving the Senate, Daschle served as a board member for the Mayo
Clinic and an advisor to the law firm Alston Baird, which represents pharmaceutical
companies and healthcare providers.
Given that Daschle would have been asked to spearhead Obama's massive
healthcare system overhaul, there were significant conflicts of interest that should
have rendered him ineligible to serve in this capacity. Virtually every decision he
would have been asked to make would have impacted his old friends, clients and
colleagues not to mention the new business his lobbyist wife was sure to get as
head of her own lobbying firm.

So, yes, I agree with Barack Obama. He did "screw up" in nominating Daschle. But
it doesn't stop there. Bill Richardson was forced to remove his name from
consideration as Secretary of Commerce due to a pending grand jury investigation.
And then there are the others who are either confirmed or soon-to-be confirmed.
They include: Eric Holder (Attorney General), Hillary Clinton (Secretary of State),
Greg Craig (White House Counsel), Leon Panetta (CIA), Janet Napolitano (Secretary
of Homeland Security), Timothy Geithner (Secretary of Treasury). All of these
appointees are loaded with significant ethical baggage.
I've said this before and I'll say it again. Barack Obama has a blind spot when it
comes to ethics, both his own and those of his corrupt associates. This blind spot
does not serve him (or the nation) well.
JW Investigates Former Treasury Secretary Paulson's Meeting with Bank
Execs
On October 13, 2008, with the federal government in a full-scale panic over the
melt-down of the financial markets, then-Treasury Secretary Henry Paulson called
the heads of the six major banks to the table to strike a deal. This is what Business
Week reported at the time:
U.S. Treasury Secretary Henry Paulson appeared close to completing a deal on the
next stage of the massive package to rescue the financial sector and get the frozen
credit markets working again. Paulson called in the heads of six major banks to
discuss the plans on the afternoon of Monday, Oct. 13. Soon thereafter, the Wall
Street Journal reported that regulators plan to devote $250 billion of the $700
billion recently approved by Congress to buy direct equity stakes in financial
institutions in return for preferred shares.
Some reports suggest that Paulson made an offer the banks couldn't refuse, which
sounds like something out of Venezulan strongman Hugo Chavez's economic
playbook. The net result of this meeting was a massive expansion of the federal
government's ownership of private financial institutions, to the point where I doubt
today if anyone can truly put a number on it. (The figures tossed around today
make $250 billion look like chump change.) Yet, given the enormous and long-term
impact of the deal struck by Paulson, little is known about what transpired during
this meeting.
Enter Judicial Watch.
On October 16, 2008, we filed a Freedom of Information Act request seeking the
following information: "Any and all records pertaining to the Department of the

Treasury's meeting between Treasury Secretary Paulson and chief executive

bankers on October 13, 2008, including but not limited to meeting notes,
presentations, transcripts, agendas, and supplemental material."
The government initially requested additional time to process the request (aka
"stonewalling"), and then failed to respond altogether. Judicial Watch filed a
lawsuit on January 26, 2009.
We don't know what we'll find. But regardless, the public has a right to know the
truth -- especially as the Obama administration plans to spend trillions of more
dollars on bailouts.
Stay tuned.
FBI Cuts Ties with Radical Islamic Group
Let's close with a victory this week. It appears the federal government is finally
cutting its ties to the terrorist-front group Council on American-Islamic Relations
(CAIR). According to Fox News:
The FBI is severing its once-close ties with the nation's largest Muslim advocacy
group, the Council on American-Islamic Relations, amid mounting evidence that it
has links to a support network for Hamas.
All local chapters of CAIR have been shunned in the wake of a 15-year FBI
investigation that culminated with the conviction in December of Hamas fundraisers
at a trial where CAIR itself was listed as an unindicted co-conspirator.
The U.S. government has designated Hamas as a terrorist organization.
An official at the FBI's headquarters in Washington confirmed to FOX News that his
office directed FBI field offices across the country to cut ties with local branches of
CAIR.
Now, I say the government "finally" cut ties because Judicial Watch and others have
been trying to shut down CAIR since 2001.
In fact, just days after the attacks of September 11th, Judicial Watch filed a
complaint with the Internal Revenue Service calling for the dissolution of 16
Muslim charities serving as front groups for terrorism. CAIR was on that list. Here's
how we put it in the complaint:

Judicial Watch, Inc., the public interest law firm that investigates and prosecutes
government abuse and corruption, hereby files a complaint against certain tax
exempt and other organizations that are, based on publically available information,
reportedly being used as money laundering front organizations for radical Islamic
terrorists, to include but not limited to associates of Osama bin Laden and
"HAMAS," and their operations, in both the United States and abroad.
Judicial Watch also published a special report in 2007 entitled, " Muslim Charities:
Moderate Non-Profits or Elaborate Deceptions," which provided an in-depth
profile on CAIR, calling attention to the organization's deep roots in the Islamic
Jihad movement.
So what took the government so long to take action against CAIR? We asked a
similar question of Steve Emerson in our monthly newsletter the Verdict back in
2007. Mr. Emerson, who is a leading expert in radical Muslim organizations and the
founder of the Investigative Project in Washington, DC, stated that the
government's urgency in shutting down these front groups "is tempered by the
constraints of when you can disclose intelligence and also, political correctness."
We're glad the FBI finally got some sense and ditched a bit of their PC mentality.
Now, rather than meeting with CAIR, the FBI can begin seriously investigating
them.

Obama lifts Bush's veil of secrecy

Repeals act to extend presidential records shield
Thursday, January 22, 2009
Moving quickly to undo the Bush administration's regime of secrecy, President
Obama on Wednesday repealed a 2001 executive order granting former presidents,
and even vice presidents, the ability to keep documents secret long past the 12
years allowed by law.
It was one of Mr. Obama's first official acts, and was hailed as a rebuke of the past
eight years. In announcing the order, Mr. Obama said it will even tie his own hands.
"Going forward, any time the American people want to know something that I or a
former president wants to withhold, we will have to consult with the attorney
general and the White House counsel, whose business it is to ensure compliance
with the rule of law," Mr. Obama said. "Information will not be withheld just
because I say so. It will be withheld because a separate authority believes my
request is well-grounded in the Constitution."
After Watergate and President Nixon's attempts to shield presidential records,
Congress passed the Presidential Records Act of 1978, which said beginning in 1981
all records produced by a president or vice president belonged to the public and
must be archived. The law provided for their release 12 years after an
administration ended.
But with historians hoping in 2001 to finally gain a peek at Reagan administration
documents, Mr. Bush changed the rules with Executive Order 13233, which gave
former presidents, relatives of deceased former presidents and even former vice
presidents a veto over the release of information.
Former presidents can still exert privilege, but the new order returns the final say to
the Archivist of the United States, in consultation with the current president.
An attempt to reach Mr. Bush's office was not successful.
Scott L. Nelson, a lawyer for Public Citizen who has litigated cases against the
executive order, said the new order doesn't immediately free up a bunch of records,
but "takes away the hanging threat that that veto power might be exercised."
"It's a strong symbolic statement, if nothing else, about this president's desire to
send a message that he is committed to openness that he's willing to take a certain
portion of his own inherent authority and say he won't exercise it unless these other
officials tell him it's proper," Mr. Nelson said.
Mr. Obama also moved to undo then-Attorney General John Ashcroft's guidance in
2001 that gave government agencies new grounds to deny the release of records.
In new directives, Mr. Obama said agencies should instead presume records are
open. He signed a memo requiring three senior officials to produce an "open
government" action plan within 120 days.

"The mere fact you have the legal power to keep something secret does not mean
you should," Mr. Obama said, adding that he will hold himself to "a new standard of
openness."
The Bush administration was no stranger to fights over secrecy.
As vice president, Dick Cheney was in a dispute with the National Archives, arguing
that he did not have to comply with rules requiring him to preserve classified
information. Mr. Cheney said the Constitution didn't place his office in the executive
branch, so he wasn't bound to rules written for the executive.
Open-government advocates who had battled the Bush administration praised Mr.
Obama's moves.
"President Obama's actions today are a triumph for the rule of law," said Sen. Russ
Feingold, Wisconsin Democrat, calling the move "a critical step toward fixing the
damage done to our Constitution over the last eight years."
Anne Weismann, chief counsel at Citizens for Responsibility and Ethics in
Washington, said the changes signal "a new era of transparency and accountability
that's been badly missing for eight years."
"Unlike President Bush, President Obama is not going to be reflexively supporting
executive privilege claims of former presidents," she said, adding that it's
"unprecedented."
Mr. Obama's memos encourage all government agencies to use "modern
technology" and increase the amount of information shared with the public.
"This is an enormous opportunity to set a tone and to empower hundreds of
thousands of federal employees to do the right thing," said Lucy Dalglish, executive
director of the Reporters Committee for Freedom of the Press, who characterized it
as a "180-degree turn" from the Bush administration.
Danielle Brien, executive director of the Project for Government Oversight, said the
new disclosure rules reverse President Bush's "presumption of secrecy, and will
return us to 20th-century openness." She said enforcement of the rules could make
the Freedom of Information Act a tool of the past.
"It's particularly important to get these reforms set in stone now before the people
in power start to look longingly at the good old days of secrecy," she said.

http://www.judicialwatch.org/archive/2007/SR_muslimorg.pdf
Via Hand Delivery
September 20, 2001
The Honorable Charles O. Rossotti
Commissioner
Internal Revenue Service

1111 Constitution Ave, NW

Washington, DC 20224
Re: Complaint Concerning Certain Tax Exempt And Other
Organizations Reportedly Used As Money Laundering Front
Operations For Terrorist Activities In
The United States And Abroad.
Dear Commissioner Rossotti:
I. INTRODUCTION.
Judicial Watch, Inc., the public interest law firm that investigates and
prosecutes government abuse and corruption, hereby files a complaint
against certain tax exempt and other organizations that are, based on
publically available information, reportedly being used as money laundering
front organizations for radical Islamic terrorists, to include but not limited to
associates of Osama bin Laden and HAMAS, and their operations, in both
the United States and abroad.[1]
As set forth below, the Internal Revenue Service (IRS) must, given the
current state of war with terrorists and states which harbor them,
expeditiously investigate the misuse of these tax exempt and other
organizations, and, if necessary, shut them down forthwith. A copy of this
letter is being provided to the President of the United States, Attorney
General John Ashcroft, and other government agencies, including but not
limited to all members of Congress (Senate and House), to insure that the
IRS and other authorities take swift appropriate action.
In the past several years, the IRS has seen fit, largely under your direction, to
audit tax exempt entities and individuals who were perceived to be adverse
to President Bill Clinton and his administration. Scores of persons and
entitities, many of whom are Judicial Watch clients, such as Billy Dale,
Gennifer Flowers, Juanita Broaddrick, Katherine Prudhomme, the Western
Journalism Center, United We Stand America, and others were harassed. In
addition, over 20 conservative foundations, which criticized President Clinton
and his administration, were audited, resulting in great damage to their
financial condition and reputations. Not a single liberal organization
supportive of President Clinton, such as Jesse Jacksons RainbowP.U.S.H.
Coalition, was audited and harassed. Indeed, Jesse Jacksons own accountant
has publically confirmed that Rainbow P.U.S.H. has never been audited,
despite publicly reported misuse of tax exempt

monies. As a Clinton appointee, and given the pattern of political audits, it is

obvious that you were responsible for this selective prosecution.
However, while you and the IRS engaged in a pattern of political audits on
behalf of your benefactor, President Bill Clinton who not coincidentally
granted you a waiver for your conflict of interest concerning AMS[2], a
company you own and which contracts with the IRS for tens of millions of
dollars in business you looked the other way when it came to investigating
and taking action against radical Islamic front groups which reportedly
launder money to fund terrorist operations on American soil.
As a result, and as set forth below, please immediately take appropriate
action against the following tax exempt and other organizations. The failure
to do so would constitute a gross dereliction of duty as an American, and
under your authority as Commissioner of the IRS.
II. TAX EXEMPT AND OTHER ENTITIES TO INVESTIGATE IMMEDIATELY.
[3]
HAMAS is an acronym for the Arabic term for The Islamic Resistance
Movement Harakat al Muqawama al Islamiyya. It is an off-shoot of the
Muslim Brotherhood (MB), and has repeatedly engaged in terrorism. Key U.S.based leaders of the HAMAS organization, including but not limited to Mousa
Abu Marzook[4], Ismail Elbarassee, Nasser Al Khatib and Mohammad
Salah[5], established major non-profit organizations such as religious,
educational, scientific, literary, and research organizations in the United
States from which HAMAS reportedly has organized, recruited, trained and
planned terrorist attacks.
Non-profit entities organized under Section 501(c)(3) of the IRS Code have
been used to launder financial transactions and facilitate the transfer of
funds supporting violent terrorist attacks by HAMAS and others. Some of
these non-profit organizations have partnered with HAMAS controlled forprofit businesses in elaborate and complicated financial transactions
intended to mask the flow of terrorist funds into and out of the United States.
Based on our analysis of publically available documents, and other
published reports, it is clear that this U.S.-based network has also
provided financial resources for Osama bin Laden and his terrorist
operations.
A. Tax Exempt Organizations That Reportedly Front For HAMAS:
1. United Association for Studies and Research[6]
5524 Hempstead Way
Springfield, VA 22151
(Office in Chicago, IL)

Comment: United Association for Studies and Research (UASR)

reportedly serves as the headquarters of the political arm of HAMAS in the
United States. Mousa Abu Marzook served as the UASR political director.
Marzook was subsequently deported from the United States to Jordan.
2. Islamic Association for Palestine[7]
888 S. Greenville, Suite 307
Richardson, TX 75081
(Offices in Chicago, IL and California)
3. North American Islamic Trust[8]
2622 East Main Street
Plainfield, Indiana 46168
(Offices in Pittsburgh, PA and Toledo, OH)
4. Islamic Relief Association[9]
1504 B Mount Vernon Ave.Alexandria, VA 22301
5. Islamic African Relief Agency[10]
201 E. Cherry, Suite #DColumbia MO 65203
Comment: The Islamic African Relief Agency (IARA) reportedly received
2 U.S. State Department grants in 1998 worth $4.2 million dollars. IARA
reportedly transferred money to Mercy International, another nonprofit Muslim organization that purchased the vehicles used by
Osama bin Laden to bomb the U.S. embassies in both Kenya and
Tanzania on August 8, 1998.
6. Holy Land Foundation for Relief and Development[11]
(Formerly, the Occupied Land Fund)
Comment: The Holy Land Foundation provides annuities to the families of
suicide bombers. In Israel, the offices were closed down and the
organizations chairman was arrested and indicted for aiding HAMAS.
Marzook claimed a $210,000 dollar cash donation after establishing the
organization.
7. Mostan International[12]
8. Muslim American Society
9. Cultural Society
10. Muslim Arab Youth Association (MAYA)[13]
2346 S. LynhurstSuite 302Indianapolis IN 46241
(Offices in Royal Oak, MI and Shawnee Mission, KS)

11. Alaqsa Educational Fund

12. Council on American Islamic Relations (CAIR)
1301 NW Highway, Ste 212Garland, TX 75041
(Offices in Washington, DC, Southfield MI, Santa Clara, CA, Brooklyn, NY,
Columbus, OH)
13. Islamic Society of North America (ISNA)[14]
14. Islamic Circle of North America (ICNA)[15]
166-26 89th AvenueJamaica, NY 11432
15. American Middle Eastern League for Palestine
888 S. Greenville, Ste. 307Richardson TX 75081
16. Quaranic Literacy Institute (QLI)[16]
Oaklawn, IL
Comment: The QLI represents itself as a not-for-profit research institute
devoted to the translation of sacred Islamic texts and to scholarly research
devoted to such topics. QLIs principals included its President, Ahmad Zaki
Hameed (Zaki), Corporate Secretary and Trustee, Amer Haleem and
Treasurer, Abraham Abusharif.
In June and July 1991, QLI reportedly engaged in a for-profit land sale and
development project in Woodbridge, Illinois with two firms known as Golden
Marble, Inc. and Kadi International (a Saudi firm). Ultimately, the deal netted
QLI at least $600,000 profit, of which not a penny was ever reported to the
IRS. QLI was granted their 501(c)(3) tax-exempt status in March 1992. QLI
reportedly did not file IRS Form 990s for tax years 1991 through 1995.[17]
B. For-Profit Entities Reportedly Supporting HAMAS:
1. BMI, Inc.
Secaucus, NJ
Comment: BMI was financed by Marzook (a US Designated Terrorist);
Yassin Kadi, financier of HAMAS terrorist Mohammad Salah, and two siblings
of Osama bin Laden. BMI has developed property in Indianapolis, IN,
Baltimore, MD and other locations. The development schemes parallel those
of QLI and Golden Marble, Inc. (above).
2. Kadi International, Inc.

3. Golden Marble, Inc.

4. Mecca Investment International[18]
1525 Hi Point St #102Los Angeles, CA 90035
III. CONCLUSION.
On behalf of the American people, Judicial Watch demands that you and the
IRS do your duty and investigate and, if necessary, shut down these
organizations, before more terrorist incidents occur.
Judicial Watch, and the American people, await your speedy, affirmative
response to our complaint.
Sincerely,
JUDICIAL WATCH, INC.
Thomas Fitton
President
cc: President George W. Bush
The White House
Honorable John D. Ashcroft
Attorney General of the United States
Honorable Paul ONeil
Secretary of the Treasury
Michael Chertoff, Esq.
Assistant Attorney General
Criminal Division
U.S. Department of Justice
All Members of Congress
(Senate and House)

[1]Judith Miller, Some Charities Suspected of Terrorist Role, The New York
Times, Saturday, February 19, 2000, page 5 (Exhibit 1).
[2]John Berlau, IRS Boss Snagged Clinton Waiver, Insight Magazine, May 7,
2001.
[3]Judicial Watch does not equate terrorist funded activities with the ArabAmerican community in general.
[4]Steven Greenhouse, U.S. Detains Arab Tied To Militants, The New York
Times, Friday, July 28, 1995, page 1 (Exhibit 2).
Charles W. Hall; Robert OHarrow, Jr., Virginia Man Suspected of Terrorism
Known for Anonymity, The Washington Post, Tuesday, August 8, 1995, Page
B1, (Exhibit 2).
Michael Daly, Fan of Suicide Bombing, New York Daily News, Sunday, May
20, 2001, Page 2 (Exhibit 2).
[5]Judith Miller, Israel Says That a Prisoners Tale Links Arabs in U.S. to
Terrorism, The New York Times, Wednesday, February 17, 1993, page 1
(Exhibit 3).
[6]Bank & Lender Liability Litigation Reporter, Suit Accusing Groups of
Funding Terrorism Can Continue, February 8, 2001, Vol. 6; No. 12; Pg 10
(Exhibit 4).
[7]Steve McGonigle, Grand Jury Pursues Records; Palestinian Groups Files
Subpoenaed After Raid By Terrorism Task Force, The Dallas Morning News,
Friday, September 7, 2001, Page 33A (Exhibit 5).
Judith Miller, FBI Searches Internet Concern In Inquiry Into Mideast
Terrorism, The New York Times, Friday, September 7, 2001, page A15
(Exhibit 5).
[8]Agence France Presse, Chicago-Area Moslem Groups Allegedly Launder
Money For Hamas, September 8, 1998 (Exhibit 6)
Ben Tinsley, Arlington Islamic Society Leader Temporarily Reinstated, The
Dallas Morning News, Thursday, July 6, 2000, Page 27A (Exhibit 6).
[9]Jacob Dallal, State Unsure How To Deal With Moslem Charity, The
Jerusalem Post, Friday, August 4, 1995. Page 8 (Exhibit 7).
[10]Judith Miller, U.S. Contends Muslim Charity Is Tied To Hamas, The New
York Times, Friday, August 25, 2000, page 21 (Exhibit 8).
[11]Ibid
The Dallas Morning News, Holy Land Foundation Chronology,Sunday June
11, 2000, page 10J (Exhibit 9).
Robert Clow, Citis Unholy Mess Defends Biz With Charity Allegedly Tied To
Hamas, The New York Post, Wednesday, January 24, 2001, Page 36 (Exhibit
9).
[12]Arab Press Service Organization, HAMAS Profile Moussa Mohammed
Abu Marzuk, March 3, 1997, No. 3, Vol. 33. (Exhibit 10).
[13]PR Newswire, Terrorism Expert Reveals New Bin Laden Connections,
October 30, 1998, (Exhibit 11).
[14]Faisal Kutty, Algerian Islamist Sheikh Mahfoud Nahna Addresses ISNA
Conference, Canadian Chronicle, as reported in Washington Report on
Middle East Affairs, August 31, 1998, Vol.XVII; No. 5; Pg. 75. (Exhibit 12)

[15]Richard Sisk, Hamas Uses U.S. Fronts To Raise Cash, Sez Freeh, New
York Daily News, March 13, 1996, page 6 (Exhibit 13).
[16]Associated Press, Feds Seize Assets In Hamas Case, Wednesday, June
10, 1998 (Exhibit 14).
[17]Judith Miller, Suit Accuses Islamic Charities of Fund-Raising for
Terrorism, The New York Times, Saturday, May 13, 2000, page 10 (Exhibit
15).
[18]Richard Cole, Fraud, Drug Trafficking and Charities in U.S. Help Finance
Terrorists, The Associated Press, Monday, May 26, 1997 (Exhibit 16).
MUSLIM CHARITIES:
MODERATE NON-PROFITS
OR ELABORATE DECEPTIONS?
the goal of Muslims in America is to turn the U.S. into an Islamic state,
even if it takes a hundred years.
Paul Sperry, Infiltration
A JUDICIAL WATCH
SPECIAL REPORT
2007
INTRODUCTION
Today, some radical U.S. non-profit
groups, pretending to be mainstream,
humanitarian charities, are funding
violent attacks against innocents, and
the frightening thing is the U.S.
government surely knows about it.
The money moves quietly, in discreet,
nearly-untraceable forms. It can be carried,
transferred and maneuvered until it
simply disappears. According to the

Washington Post, Money can be handcarried

abroad in small bundles. Cash
deposited in a U.S. bank can be withdrawn
from ATMs in Israel, Egypt or
Jordan. Stored-value cards are portable,
while Internet banking allows fast and
complex transfers. Fundraisers also use
hawala, the ancient system of informal
money transfers in which money moves
among friends and relations. 4 Using
these and other financial tactics, front
organizations are funneling money to
Hamas and other terrorist groups in the
Middle East with ease.
After the 9/11 terrorist attacks against
the United States, Judicial Watch called
for government action against extreme
Muslim non-profit organizations that
served as front groups, raising money
for terrorist action. In 2001, Judicial Watch filed a complaint
with the Internal Revenue Service (IRS) against non-profit
organizations reportedly being used as money laundering front
organizations for radical Islamic terrorists. 5 According to the
complaint, Non-profit entities have
been used to launder financial transactions
and facilitate the transfer of funds

supporting violent terrorist attacks by

HAMAS [the anti-Israeli Muslim movement
responsible for multiple acts of
violence which have killed Americans
and Israelis].
In 2004, the Senate Financial
Committee requested an investigation
of several of the organizations on the
list originally provided by Judicial
Watch. 6 In the request letter,
Republican Senator Charles Grassley
said, Many of these groups not only
enjoy tax-exempt status, but their
reputation as charities and foundations
often allows them to escape scrutiny,
making it easier to hide and move their
funds to other groups who threaten our
national security. 7
While the U.S. government finally took
action against some of the groups identified
by Judicial Watch, others are still
functioning. The federal government is
aware of their presence and the danger
they pose to our national security.
The question is: Why are they still in
operation?

...some radical U.S. nonprofit

groups, pretending to
be mainstream, humanitarian
charities, are funding violent
attacks against innocents,
...and the frightening thing
is...the U.S. government
surely knows about it.
According to Steve Emerson, leading expert on radical Muslim
organizations and founder of the Investigative Project in
Washington, D.C., which is dedicated to uncovering information
on terrorist activity in the United States, it is an issue of
diplomacy. In an interview for The Verdict, Judicial Watchs
monthly newsletter, Emerson stated that the sense of governmental
urgency to end undercover terrorist funding, is tempered
by the constraints of when you can disclose intelligence
and also, political correctness.8
Judicial Watch has compiled the following list of radical
Muslim non-profit organizations currently functioning in the
United States. They are front organizations, posing as mainstream
charities to disguise their extreme agendas. Despite
their moderate faade, these groups financially and/or morally
support terrorist groups and activities. Muslim organizations
that are truly moderate will publicly reject jihad (holy war)9 and
function within the constraints of American government and
society. 10 The following groups, however, publicly and

unabashedly repudiate the American way of life, encourage

American Muslims to challenge the current order, and/or raise
funds for terrorist organizations. They are dangerous and must
be shut down.
GLOSSARY
Jihad: Holy War The cause for which many extreme
Muslims sects perform acts of violence.
[Jihad] means the legal, compulsory, communal effort to
expand the territories ruled by Muslims at the expense of
territories ruled by non-Muslims. The purpose of jihad, in other
words, is not directly to spread the Islamic faith but to extend
sovereign Muslim power... Despite jihad's record as a leading
source of conflict for 14 centuries, causing untold human
suffering, academic and Islamic apologists claim it permits only
defensive fighting, or even that it is entirely non-violent.
Daniel Pipes, New York Post 1
Wahhabi: An extreme Muslim sect from Saudi Arabia.
The Wahhabis continue to believe and preach violence and
Jihad as a pillar of Islamic virtue, rigid conformism of religious
practice, institutionalized oppression of women, wholesale
rejection of modernity, secularism and democracy as
antithetical to Islam and militant proselytism.
Mr. Alex Alexiev, Center for Security Policy 2
Hamas: Anti-Israeli Muslim movement responsible for
suicide bombings and acts of violence and listed as a
terrorist group by the U.S. State Department.

[Hamas] is loosely structured, with some elements working

clandestinely and others operating openly through mosques
and social service institutions to recruit members, raise money,
organize activities, and distribute propaganda HAMAS terrorists,
especially those in the Izz al-Din al-Qassam Brigades,
have conducted many attacks, including large-scale suicide
bombings, against Israeli civilian and military targets.
US State Department, List of Terrorist Groups 3
2
Photo: Political leader of Hamas, Khaled Mashaal.
Documents: Judicial Watch letter to the IRS detailing Muslim Charities suspected of
funding terrorist groups.
3
The Council for American Islamic
Relations (CAIR)
Location: Washington, DC
Website: http://www.cair-net.org
Who are they?
CAIR is the outgrowth of a suspected Hamas front called
the Islamic Association for Palestine (IAP). (The IAP is a
terrorist-connected group that has since had its assets frozen
and has gone out of business.) 11
With roots buried deep in the Islamic jihad movement, the
organization is currently the leader of radical Muslim organizations
in the United States. According to Daniel Pipes, a leading
expert on radical Muslim organizations, It is in some ways
the most formidable in that they claim to have some 33 offices

in North America and they are staffed with full time people.
They are on the case in [virtually every] city, meeting with
politicians, going to schools, and dealing with the media 12
According to other sources, CAIR should be considered a
foreign-based subversive organization It has organized
numerous community branches and has had immense and
alarming success in gaining [the] position [of] official
representative of Islam in the U.S. 13
The Council for American Islamic Relations:
Public Profile
The Council for American Islamic Relations stated mission
is, To enhance understanding of Islam, encourage dialogue,
protect civil liberties and empower American Muslims
According to their website, the Council for American Islamic
Relations condemns the 9-11 attacks, works to enhance
understanding of Islamism in America, and functions as a
media voice for Muslims in America.
The Council for American Islamic Relations claims to have
participated in events to feed the needy, sponsored anti-hate
campaigns, and provided winter coats to illegal day laborers
at a Herndon, Virginia day labor center.
As of 2005, CAIR had annual revenue of $2.6 million, 14
and according to its own website, it is currently devoting
much of its efforts to an image rebuilding campaign. 15
Above all, the organization presents itself as a human rights
group, representing Muslims and promoting peaceful acceptance

of all religions. 16
The Council for American Islamic Relations:
Shadow Profile
Steven Pomerantz, former FBI chief of counterterrorism, said
that, CAIR, its leaders, and its activities effectively give aid
to international terrorist groups. 17
Other experts have called the group, part of the criminal
conspiracy of radical Islamic terrorists, and a radical
fundamentalist front group for Hamas. 18
The Council for American Islamic Relations received a significant
portion of its start-up funding and support from the Holy
Land Foundation and the Islamic Association of Palestine,
both known Hamas terrorist organization supporters. 19
The Council for American Islamic Relations has knowingly
assisted violent Muslim terrorist groups (including al Qaeda
and/or the International Islamic Front for the Jihad Against
Jews and Crusaders) that would commit an act of deadly
aggression against the United States in the near future,
using the resources and support supplied by CAIR. 20
IBRAHIM HOOPER
CAIR Spokesperson
DR. PARVEZ AHMED
CAIR Chairman
COREY SAYLOR
CAIR Dir. of Government Affairs
OMAR AHMED

Co-Founder of CAIR
4
What the Council for American Islamic
Relations is Saying and Doing
In 2005, board member Hamza Yusuf said that America, is
facing a terrible fate, and the reason for that is because the
country stands condemned. It stands condemned like Europe
stood condemned because of what it did. And lest it forget,
Europe suffered two world wars after conquering the Muslim
lands. 21
Representatives and affiliates hold key speaking positions at
events held by the Islamic Society of North America
as well as having financial ties to the North American
Islamic Trust. Both organizations have known ties to
the extreme Wahhabi campaign to penetrate U.S. mosques.22
Siraj Wahhaj, 2005 board member prayed that Americas
democracy [would] crumble, clearing the way for an
Islamic theocracy. 23
The Council for American Islamic Relations partnered with
The Department of Homeland Securitys Transportation
Security Administration (TSA), and TSA published an online
press release authored by the Council for American Islamic
Relations expressing its approval of a TSA sensitivity training
program about Islamic traditions. 24
Islamic Society of North America (ISNA)
Location: Plainfield, Indiana

Website: http://www.isna.net
Who are they?
The Islamic Society of North America is a radical Muslim
organization that owns and runs mosques throughout North
America, functioning as an umbrella organization and clearinghouse
to connect all Muslim activities in the United States. 25
Firmly believing in, and supporting, extremist Muslim views,
the group places radical leaders within mosques, sometimes
replacing current religious leaders with those of a more
extreme persuasion. The Islamic Society of North America is
connected closely to the Saudi-Wahhabi form of Islam, an
extreme version of Islam which teaches that all non-Muslims
are enemies and heathens. 26
While the Islamic Society of North America is much less public
than the Council for American Islamic Relations and caters
mainly to Muslim groups, it is dangerous because of its
terrorist connections and campaigns to infiltrate mosques and
eliminate all forms of moderation.
RANDALL
ISMAIL ROYER
CAIR National Civil
Rights Coordinator
CONVICTED CRIMINAL
Committed Terrorist
Crimes while working
for CAIR

USA Today, January 16, 2004

GHASSAN ELASHI
Founder of CAIR Texas
CONVICTED CRIMINAL
Committed Terrorist
Crimes while working
for CAIR
Fox News, April 13, 2005
America is facing a terrible fate, and the reason for
that is because the country stands condemned.
It stands condemned like Europe stood condemned
because of what it did. And lest it forget, Europe
suffered two world wars after conquering the Muslim
lands. Hamza Yusuf, CAIR board member
5
The Islamic Society of North America:
Public Profile
The Islamic Society of North America presents itself as an
association of Muslim organizations and individuals that
provides a common platform for presenting Islam, supporting
Muslim communities, developing educational, social and
outreach programs and fostering good relations with other
religious communities, and civic and service organizations.
The Islamic Society of North America
professes goals and programs including
Imam Training and Leadership

Development, Involvement of Youth,

Sound Financial Base, Public Image,
Interfaith and Coalition Building,
Community Development.
The organization offers affiliation and
membership programs including
benefits such as a free newsletter,
Islamic Horizons, the ISNA magazine
which connects over 60,000 Muslims
across North America, organizational
endorsements and other perks. 27
In 2007, the Islamic Society of North
America will hold multiple events
including an educational forum and
annual conferences, one of which is
entitled, Islam in America. 28
The Islamic Society of North
America: Shadow Profile
The Islamic Society of North America
enforces Wahhabi [extreme Islamism]
theology in the countrys 1,200 officially recognized mosques 29
specifically running and operating at least 324 mosques in
the United States. 30
According to an article published by Daniel Pipes, the
Islamic Society of North America appears to be a key player
in the channeling of Saudi Wahhabist money into the United

States through its affiliation with the North American Islamic

Trust, an Islamic financial clearinghouse with terrorist ties. 31
According to Paul Sperry, author of the book Infiltration,
the group has been allowed to control Islamic worship
services at federal prisons...the federal pen has become a
recruiting ground for al-Qaeda.32
What The Islamic Society of North America
is Saying and Doing
Muzammil H. Siddiqi, president of the Islamic Society of
North America during the 9/11 attack, said America has to
learn. If you remain on the side of injustice, the wrath of
God will come. Please all Americans,
do remember that, Allah is watching
everyone. If you continue doing
injustice and tolerating injustice, the
wrath of God will come. 33 Siddiqi
has also publicly supported Hamas
and Hezbollah (recognized terrorist
organizations). 34
Bassam Osman, President of the
North American Islamic Trust,
which owns a school described in a
federal indictment as a criminal
enterprise, sits on the board of the
Islamic Society of North America.35
The Islamic Society of North

America is also getting cozy with

the White House, receiving an invitation
to send a representative to
participate in the White House Office
of Faith-Based and Community
Representatives White House
Leadership Conference in 2005. 36
Islamic Circle of North America (ICNA)
Location: Jamaica, New York
Website: http://www.icna.org
Who are they?
The Islamic Circle of North America works in conjunction with
the Council for American Islamic Relations and the The Islamic
Society of North America to promote radical Islamism through
national conferences. An Activists Guide to Arab and Muslim
Campus and Community Organizations in North America,
ISNA appears to be a key player
in the channeling of Saudi
Wahhabist money into the
United States through its
affiliation with the North
American Islamic Trust, an
Islamic financial clearinghouse
with terrorist ties.
Daniel Pipes, expert on Militant Islam.
6

published in 2003, characterized ICNA as one of the, less

prominent groups within the Muslim extremist camp, aligned
with neo-Wahhabi extremists in Pakistan. 37
Many of its leaders have direct connections to terrorist organizations
and widely function as leaders within the Council for
American Islamic Relations, the Islamic Council for North
America and the Islamic Society for North America. 38
The Islamic Council for North America:
Public Profile
According to the groups website, The goal of ICNA
shall be to seek the pleasure of Allahthrough the
struggle of Iqamat-ud-Deen (establishment of the
Islamic system of life) as spelled out in the Qur'an and
the Sunnah of Prophet Muhammad
Program goals include [The invitation of] mankind to
submit to the Creator by using all means of communications
[The motivation of] Muslims to perform their duty
of being witnesses unto mankind by their words and
deeds, and [cooperation] with other organizations for the
implementation of this program. 39
Since 9/11, the Islamic Council for North America has
issued statements against the U.S. War on Terror, interventions
in Afghanistan and Iraq, and the Patriot Act. 40
The Islamic Council for North America:
Shadow Profile
The Islamic Council for North America originated as a

copy of the Muslim Brotherhood of Pakistan, Jamaat-eIslami. 41 Jamaat-e-Islami was recognized by officials to
have direct ties to al-Qaeda terrorists and, in some cases,
represent much of the population of al-Qaeda terrorists. 42
In his book, American Jihad, terrorism expert Steve
Emerson said, "The ICNA openly supports militant Islamic
fundamentalist organizations, praises terror attacks, issues
incendiary attacks on Western values and policies, and
supports the imposition of Sharia [Islamic law]." 43
The group works with other Muslim organizations that
describe suicide bombings as "justifiable and, in March
1996, U.S. Senator Mitch McConnell said, "One of the
groups with Hamas ties is the Dallas-based Islamic
Association for Palestine in North America, which, in turn,
apparently is allied with the Islamic Circle of North America
in New York." 44
A 2001 webpage of the southeast branch (located mainly in
Georgia and Florida) included multiple links to violent
terrorist groups such as Hizbollah (Hezbollah) and Hamas
and called for visitors to donate to a site known to directly
fund al-Qaeda activity and Taliban forces. 45
In 2005, the Islamic Council for North America was
under investigation for its connection to a violent Pakistani
terrorist group with al-Qaeda links. 46
What the Islamic Council for North America is
Saying and Doing

 Keynote speakers for the Islamic Council for North America

conferences include known terrorists dedicated to perpetuating
radical Islamism.
Imam Siraj Wahhaj, also an advisory board member of the
Council for American Islamic Relations, was named by U.S.
Attorney Mary Jo White in 1995 as one of the unindicted
persons who may be alleged as co-conspirators in the
attempt to blow up New York City monuments including
the World Trade Center in 1993. 47 Wahhaj has also called
for the U.S. government to be replaced by Muslim social
structure.
Dr. Muzammil Siddiqi is a radical Muslim publicly advocating
terrorist martyrdom: Those who die on the part of
justice are alive, and their place is with [Allah], and
they receive the highest position, because this is the
highest honor. 48
At an Islamic Council for North America conference in 1996,
Shikh Hamza Yusuf said, I am a citizen of this country not
by choice but by birth. I reside in this country not by choice
but by conviction in attempting to spread the message of
Islam in this country. I became Muslim in part because I
did not believe in the false gods of this society, whether we
call them Jesus or democracy or the Bill of Rights or any
other element of this society that is held sacrosanct by the
ill-informed peoples that makes up this charade of a
society. 49

7
The North American Islamic Trust (NAIT)
Location: Burr Ridge, Illinois
Website: http://www.nait.net
Who are they?
The North American Islamic Trust is an organization that
accumulates property by holding the titles to mosques, Islamic
centers and schools throughout the United
States, creating a network that includes
approximately 25% of American Mosques. 50
Essentially, the organization acts as an
investment pool and financial clearinghouse
for Muslims in the United States. However,
it has financial ties to the radical Islamic
group, Wahhabi/ Salafi (based in Saudi
Arabia) and its leadership has direct connections
to terrorist activity in the United
States.
The North American Islamic
Trust: Public Profile
The North American Islamic Trust
functions as a real estate holding tank,
that safe guard[s] and pool[s] the assets
of the American Muslim community,
develops financial vehicles and products[
and] publishes and distributes

credible Islamic literature, and facilitates

and coordinates community projects.
According to its website, NAIT
facilitates the realization of American
Muslims' desire for a virtuous and happy
life in a Shari'ah-compliant way. (The
Shariah is a sacred law detailing social
and individual duties.)
The North American Islamic Trust
publicizes programs instituted to create stable
funding for Islamic schools, the perpetuation of Islamic
beliefs and practices in institutions through financial investment,
and a Dow Jones Islamic Fund acceptable
to Islamic principles. 51
The North American Islamic Trust:
Shadow Profile
Newsweek stated, authorities say NAIT has long been a
funnel for Saudi and other gulf money seeking to spread an
often anti-American brand of Islamic fundamentalism in
American mosques from southern California to South
Carolina 52
According to terrorism expert, J. Michael Waller, the
organization owns between 50 and 80 percent of North
American mosques and was raided in 2002 by the
U.S. Treasurys Operation Green Quest for suspected
involvement with terrorist financing. 53

 Sami Al-Arian former University of Florida

professor and key figure in North
American Islamic Trust was sentenced to
four years in prison after being convicted
of financially and verbally supporting Jihad
by donating money to terrorist groups. 54
What the North American
Islamic Trust is Saying and
Doing
The North American Islamic Trust owns
the Islamic Academy of Florida a criminal
enterprise as described in the federal
indictment handed down in February of
this year against the school's founder,
Sami al-Arian and others alleged to be
Hamas fundraisers. 55
In 2003, the group received a $325,000
investment from the Muslim extremist
front group, the Council for American
Islamic Relations. 56
The Muslim American
Society (MAS)
Location: Falls Church, Virginia
Website: http://www.masnet.org
Who are they?
The Muslim American Society is the American arm of the

Muslim Brotherhood, a dangerous, underground organization

that helped develop the Palestinian Islamic Jihad, Hamas and
al-Qaeda. 57 As a front organization, it follows the vision of the
Muslim Brotherhood: Muslim rule in the United States. 58 The
Muslim American Society also has close ties to the North
American Islamic Trust, the Islamic Council for North America,
NAIT owns between 50
and 80 percent of North
American mosques and
was raided in 2002 by
the U.S. Treasurys
Operation Green Quest
for suspected
involvement with
terrorist financing.
J. Michael Waller, terrorism expert
8
and the Islamic Society for North America as well as multiple
other radical Muslim groups.
The Muslim American Society: Public Profile
According to its website, the Muslim American Society
is a charitable, religious, social, cultural and educational,
not-for-profit organization. It is a pioneering Islamic
organization, an Islamic revival and reform movement
The stated goals of the organization include presenting the
message of Islam to Muslims and non-Muslims...to offer a

viable Islamic alternative to many of our societys prevailing

problems...and to foster unity among Muslims and
Muslim organizations 59
The Muslim American Society:
Shadow Profile
According to Paul Sperry, the violent Muslim Brotherhood
uses the Muslim American Society as a front for operations
in the United States. 60
In 1994, it was disclosed that the Brotherhood had plans of
achieving Islamic rule in America [to] convert Americans
to Islam and elect like-minded Muslims to political office.61
Their approach is gradual. First you change the person,
then the family, then the community, then the nation.62
What the Muslim American Society is Saying
and Doing
At a Muslim American Society conference, a speaker said
that despite an emotional attachment to the idea of an
Islamic state in America, the insufficient Islamic population
creates, hurdleswe can't jump yet." 63
A Muslim American Society Chicago chapter website says
that Western secularism and materialism are evil and that
Muslims should pursue this eviforce to its own lands and
invade its Western heartland. 64
The Muslim American Society chapter in Minnesota
issued a fatwa (or Islamic edict) saying that Islamic
jurisprudence prohibits taxi drivers from carrying

passengers with alcohol, leaving nearly 100 airline

passengers each month without rides. 65
The United Association for Studies and
Research (UASR)
Location: Springfield, Virginia
Who are they?
The United Association for Studies and Research is an
independent think tank located in Virginia. Very little is known
about the organization besides its status as a think tank and its
terrorist connections. As of 2006, the United Association for
Studies and Research was functioning out of a boarded-up
building in a D.C. suburb, using pre-paid cellular telephones for
communication. 66
The United Association for Studies and
Research: Shadow Profile
In his prepared statement before the Senate Judiciary
Committee, Steve Emerson said that the United Association
for Studies and Research was, a self described Islamic
think-tank which in reality served as a covert branch for
planning Hamas operations and disseminating
propaganda. 67
It was called, in an article published by Daniel Pipes, The
American arm of Hamas and the head of the political
command for Hamas in the U.S.
Peter Leitner, President of Higgins Counterterrorism
Research Center, called the United Association for Studies

and Research part of a shell game of international

terrorism - phony organizations that are really terrorist cells
[and] part of the international terrorist network." 68
The United Association for Studies and Research has close
financial ties to the Council for American Islamic
Relations and places founding members of the organization
on its board of directors. 69
What the United Association for Studies and
Research is Saying and Doing
A large conference, sponsored by the United Association
for Studies and Research, focused on the need to respond
to the Western crusades against Iraq. 70
2005 UASR Executive Director Ahmen Yousef called
several known and incarcerated terrorists in the United
9
States, simply open, moderate leaders, seeking cultural
bridges. 71
The Muslim American Youth Association
(MAYA)
Little information is available on the Muslim American Youth
Association, but in an interview with the Middle Eastern
Quarterly, Steve Emerson was quoted as saying, I have analyzed
materials from some ten MAYA conferences and have
found repeated exhortations to audiences to strike against
"infidels," to instill terror in the hearts of the "enemy", to
slaughter Jews, to engage in jihad against the "West" and

destroy it, and so forth. He also named it one of the largest

constituent groups of the dangerous Muslim Brotherhood. 72
ORGANIZATIONS CLOSED SINCE
JUDICIAL WATCHS LETTER TO THE
INTERNAL REVENUE SERVICE
The following is a list of organizations on Judicial Watchs list
that have since been shut down.
Islamic African Relief Agency (IARA): On March 7,
2007, a federal grand jury indicted the Islamic African
Relief Association and five of its officials for illegally
sending millions to Iraq while denying known connections
to Osama bin Laden and other terrorists. The group was
originally shut down in 2004 following an FBI raid. 73
Holy Land Foundation for Relief and Development
(HLF): On December 4, 2001, officials froze the assets of
Holy Land Foundation for Relief and Development, the
founding organization for the Council for American
Islamic Relations. The foundation was charged in a 42count indictment that accused Holy Land of being a
Hamas front. 74
International Association for Palestine (IAP): In
August 2002, a federal judge ruled that the International
Association for Palestine had acted in support of Hamas,
and froze all its assets. The group parented the Council for
American Islamic Relations and had close links to highranking
al-Quaeda leadership. 75

 Quranic Literacy Institute (QLI): According to expert

Daniel Pipes, Quaranic Literacy Institute is now defunct,
falling under heavy accusations of terrorist activity. During
the peak of its operations, the Quaranic Literacy Institute
managed to launder nearly $1.5 million dollars in overseas
Hamas support funds. 76
As of the writing of this publication, the following organizations
are believed to have gone underground subsequent to
Judicial Watchs letter to the IRS: the Islamic Relief
Association, Mostan International, and the American Middle
Eastern League for Palestine.
CONCLUSION
Many radical Islamic organizations are alive and functioning in
the United States, operating under the guise of mainstream
charities. They are jeopardizing United States national security
by supporting terrorist groups working to destroy the U.S. and
the American way of life but, disturbingly, the United States
government seems to turn a blind eye to their activities in the
name of political correctness.
"For the past thirty years, Muslim
subversives have been working
clandestinely to undermine America's
constitutional government. Their goal,
quite simply, is to replace the U.S.
Constitution with the Quran... and turn
America into an Islamic state."

 Paul Sperry, author of Infiltration

10
ENDNOTES
1 Pipes, Daniel. What is Jihad? New York Post. December 31, 2002
2 Alexiev, Alex. WAHHABISM: STATE-SPONSORED EXTREMISM
WORLDWIDE. Testimony Before the Senate Committee on the
Judiciary. June 26, 2003.
3 United States Department of State. Chapter 6: Terrorist Groups.
Retrieved from State Department Website.
http://www.state.gov/documents/organization/45323.pdf
4 Slevin, Peter. Cash Flow to Hamas Is More Restricted, Deeper
Underground. The Washington Post. Sunday, February 19, 2006.
5 Judicial Watch Internet site.
http://www.judicialwatch.org/cases/78/hamascomplaint.pdf
6 U.S. Department of State Website.
http://usinfo.state.gov/ei/Archive/2004/Jan/15-147062.html
7 Press Release. Senators Request Tax Information on Muslim
Charities for Probe. January 2004. Retrieved from
http://usinfo.state.gov on August 16, 2006.
8 Emerson, Steve. Interview
9 Emerson, Steve. Interview
10 Pipes, Daniel. Interview
11 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005.
(p. 248)
12 Pipes, Daniel. Interview
13 Shwartz, Steven. An Activists Guide to Arab and Muslim Campus

and Community Organizations in North America. Front Page

Magazine. May 26, 2003.
14 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005.
(p. 246)
15 CAIR website. www.cair-net.org
16 CAIR Website. www.cair-net.org
17 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006
18 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006
19 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006
20 McCormick, Evan. Bad Day for CAIR Front Page Magazine.
September 24, 2003
21 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005.
(p. 259)
22 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006
23 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005
(p. 259)
24 CAIR. CAIR Welcomes TSA Hajj Sensitivity Training. Press
Release, TSA Website. December 28, 2006.
25 Rabinowitz, Beila and Mayer, William A. Radical Muslim Group
Invited to Participate in White House Faith Based Conference
Program. PipeLineNews. March 1, 2005.
26 Analysis: Wahhabism. PBS Frontline. PBS Website.

http://www.pbs.org/wgbh/pages/frontline/shows/saudi/analyses/wa
hhabism.html
27 ISNA website. http://www.isna.net/affiliation/
28 ISNA website. http://www.isna.net/about/mission.html
29 Shwartz, Steven. An Activists Guide to Arab and Muslim Campus
and Community Organizations in North America. Front Page
Magazine. May 26, 2003.
30 Kyl, John. Terrorism: Growing Wahhabi Influence in the United
States. FrontPageMagazine.com. July 3, 2003
31 Rabinowitz, Beila and Mayer, William A. Radical Muslim Group
Invited to Participate in White House Faith Based Conference
Program. PipeLineNews. March 1, 2005.
32 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p. 13)
33 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p.21)
34 Rabinowitz, Beila and Mayer, William A. Radical Muslim Group
Invited to Participate in White House Faith Based Conference
Program. PipeLineNews. March 1, 2005.
35 Rabinowitz, Beila and Mayer, William A. Bernardin Center At The
Crossroads Excessive Placidity Towards Islam, II. PipeLineNews.
March 10, 2004.
36 Rabinowitz, Beila and Mayer, William A. Radical Muslim Group
Invited to Participate in White House Faith Based Conference
Program. PipeLineNews. March 1, 2005.
37 Shwartz, Steven. An Activists Guide to Arab and Muslim Campus
and Community Organizations in North America. Front Page
Magazine. May 26, 2003.

38 Gossett, Sherrie. Masquerading as 'mainstream'. World Net

Daily. January 6, 2004.
39 ICNA website. www.icna.org
40 Horowitz, David and Perazzo, John. Unholy Alliance: The Peace
Left and the Islamic Jihad Against America. Front Page Magazine.
April 13, 2005
11
41 Kaufman, Joe. 9/11 Imam. Front Page Magazine. September 11,
2006.
42 Peters, Gretchen. Al Qaeda-Pakistani ties deepen. Christian
Science Monitor. March 6, 2003.
43 Emerson, Steve. American Jihad. Free Press. January 29, 2002.
44 Horowitz, David and Perazzo, John. Unholy Alliance: The Peace
Left and the Islamic Jihad Against America. Front Page Magazine.
April 13, 2005
45 Kaufman, Joe. 9/11 Imam. Front Page Magazine. September 11,
2006.
46 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p. 90)
47 Moore, Art. Muslims 'draw line in the sand' in D.C.
WorldNetDaily. May 17, 2003.
48 Timmerman, Kenneth. Pipes Objects to Fox in the Henhouse.
Insight Magazine. March 19, 2004.
49 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p. 22)
50 Rabinowitz, Beila and Mayer, William A. Bernardin Center At The
Crossroads Excessive Placidity Towards Islam, II. PipeLineNews.
March 10, 2004.

51 NAIT Website. http://www.NAIT.net

52 Downey, Sarah and Hirsh, Michael. A Safe Haven? Newsweek.
September 30, 2002
53 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006.
54 "Ex-professor gets over 4 years in Florida Jihad case", Reuters, May
1, 2006
55 Rabinowitz, Beila and Mayer, William A. Bernardin Center At The
Crossroads Excessive Placidity Towards Islam, II. PipeLineNews.
March 10, 2004.
56 Pipes, Daniel and Chadha, Sharon. CAIR: Islamists Fooling the
Establishment. Middle East Quarterly. Spring Edition 2006.
57 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p. 79)
58 Pipes, Daniel. The Islamic State of America. Front Page
Magazine. September 23, 2004.
59 MAS Website. www.masnet.org
60 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005
(p. 91)
61 Ahmed-Ullah, Noreen S., Roe, Sam and Cohen, Laurie. A rare look
at secretive Brotherhood in America. Chicago Tribune. September
19, 2004.
62 Pipes, Daniel. The Islamic State of America. Front Page
Magazine. September 23, 2004.
63 Pipes, Daniel. The Islamic State of America. Front Page
Magazine. September 23, 2004.
64 Pipes, Daniel. The Islamic State of America. Front Page

Magazine. September 23, 2004.

65 Associated Press. Booze, dogs too much for some Muslim
cabbies. MSNBC.com. January 4, 2007.
66 Wheeler, Scott. Alleged Terror Threat Operates in D.C. Suburb.
News Max. Monday, July 12, 2004.
67 Prepared Statement of Steven Emerson Before the Senate Judiciary
Committee Subcommittee on Terrorism, Technology and Government
Information. February 24, 1998.
68 Wheeler, Scott. Alleged Terror Threat Operates in D.C. Suburb.
News Max. Monday, July 12, 2004.
69 Mayer, William A. and Rabinowitz, Beila. The Catholic Theological
Union And The Limits Of Understanding. PipeLineNews. June 1,
2004.
70 Prepared Statement of Steven Emerson Before the Senate Judiciary
Committee Subcommittee on Terrorism, Technology and Government
Information. February 24, 1998.
71 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p. 92)
72 Emerson, Steve. Get Ready for Twenty World Trade Center
Bombings. Interview with the Middle East Quarterly. June 1997.
73 Islamic charity indicted for money laundering. Reuters. March 7,
2007.
74 Slevin, Peter. Cash Flow to Hamas Is More Restricted, Deeper
Underground. The Washington Post. Sunday, February 19, 2006.
75 Sperry, Paul. Infiltration. Nelson Current. Nashville, TN. 2005 (p.
248-250)
76 Pipes, Daniel. Muslim Charities: Terrorists' Piggybanks. Front

Page Magazine. December 14, 2004.

12
Judicial Watch
Because no one is above the law!
501 School St. SW, 5th Floor, Washington D.C. 20024 1-888-JW-ETHIC
www.JudicialWatch.org
ABOUT JUDICIAL WATCH
Judicial Watch, Inc., a conservative, non-partisan educational foundation, promotes
transparency, accountability and
integrity in government, politics and the law. Judicial Watch fulfills its educational
mission through litigation,
investigations, and public outreach.
Investigation:
Open government is honest government. This is the principle that drives Judicial
Watchs fight against government
secrecy. Using open records laws, such as the Freedom of Information Act (FOIA) and
state Open Records Laws, Judicial
Watch forces the release of government documents into the public domain.
Litigation:
Litigation and the civil discovery process not only uncovers information for the
education of the American people on
anti-corruption issues, but they can also provide a basis for civil authorities to
criminally prosecute corrupt officials.
Judicial Watch has filed more than 150 lawsuits against corrupt public officials,
achieving numerous victories on behalf
of the American people. This is what separates Judicial Watch from other watchdog
organizations. Judicial Watch takes
action by using the court system to fulfill its public interest mission.
Public Outreach:

Judicial Watchs investigation, legal and judicial activities provide the basis for
strong educational outreach to the
American people. Judicial Watchs public education programs include speeches,
opinion editorials (op-eds), publications,
educational conferences, media outreach, and radio and news television
appearances. Through its publication The Verdict,
special reports, and its Internet site www.judicialwatch.org, Judicial Watch educates
the public on abuses and misconduct
by political and judicial officials.
I think it is fair to say that Judicial Watch has been singularly successful
in bringing
scandals to light, educating the public, and using the legitimate tools of
the judicial
system to obtain justice on behalf of the American people.
Former Congressman Bob Barr (R-GA)

http://www.judicialwatch.org/archive/2007/SR_muslimorg.pdf
Obama's "Screwed Up" Presidential Appointments

http://www.judicialwatch.org/weeklyupdate/2009/06-obamascrewed#anchor1
This has been a rather inauspicious start for the new president, at least as far as his
presidential appointments are concerned. This week, Barack Obama was forced to
admit that he "screwed up" on a couple of his key appointees, most notably former
Senator Tom Daschle, Obama's pick to run the Department of Health and Human
Services. Daschle stepped down on Tuesday after news broke that he failed to pay
nearly $150,000 in back taxes. (Daschle did ultimately make good on the bill last
month, but it was too little too late.) Another appointee to be first federal
"performance" officer, Nancy Killefer, also withdrew because of an old tax lien.
Here's the scoop according to The Associated Press:
Barack Obama on Tuesday gave up his nomination fight for Tom Daschle and a
second high-profile appointee who failed to pay all their taxes, fearing ugly
confirmation battles that would undercut his claims to ethical high ground and
cripple his presidency in just its second week. "I screwed up," he declared...

..."I'm frustrated with myself, with our team. ... I'm here on television saying I
screwed up," Obama said in an interview on NBC's "Nightly News with Brian
Williams." He repeated virtually the same words in several other interviews."
What was the screw up? Was it that Obama and his team defended the nonpayment of taxes as no big deal, that he didn't vet his nominees, that he let tax
cheat Geithner continue to serve as head of Treasury?
As I pointed out back in November, tax scandal aside, Daschle was a terrible
choice to serve as Secretary of Health and Human Services. After losing his last
campaign and leaving the Senate, Daschle served as a board member for the Mayo
Clinic and an advisor to the law firm Alston Baird, which represents pharmaceutical
companies and healthcare providers.
Given that Daschle would have been asked to spearhead Obama's massive
healthcare system overhaul, there were significant conflicts of interest that should
have rendered him ineligible to serve in this capacity. Virtually every decision he
would have been asked to make would have impacted his old friends, clients and
colleagues not to mention the new business his lobbyist wife was sure to get as
head of her own lobbying firm.
So, yes, I agree with Barack Obama. He did "screw up" in nominating Daschle. But
it doesn't stop there. Bill Richardson was forced to remove his name from
consideration as Secretary of Commerce due to a pending grand jury investigation.
And then there are the others who are either confirmed or soon-to-be confirmed.
They include: Eric Holder (Attorney General), Hillary Clinton (Secretary of State),
Greg Craig (White House Counsel), Leon Panetta (CIA), Janet Napolitano (Secretary
of Homeland Security), Timothy Geithner (Secretary of Treasury). All of these
appointees are loaded with significant ethical baggage.
I've said this before and I'll say it again. Barack Obama has a blind spot when it
comes to ethics, both his own and those of his corrupt associates. This blind spot
does not serve him (or the nation) well.
JW Investigates Former Treasury Secretary Paulson's Meeting with Bank
Execs
On October 13, 2008, with the federal government in a full-scale panic over the
melt-down of the financial markets, then-Treasury Secretary Henry Paulson called
the heads of the six major banks to the table to strike a deal. This is what Business
Week reported at the time:

U.S. Treasury Secretary Henry Paulson appeared close to completing a deal on the
next stage of the massive package to rescue the financial sector and get the frozen
credit markets working again. Paulson called in the heads of six major banks to
discuss the plans on the afternoon of Monday, Oct. 13. Soon thereafter, the Wall
Street Journal reported that regulators plan to devote $250 billion of the $700
billion recently approved by Congress to buy direct equity stakes in financial
institutions in return for preferred shares.
Some reports suggest that Paulson made an offer the banks couldn't refuse, which
sounds like something out of Venezulan strongman Hugo Chavez's economic
playbook. The net result of this meeting was a massive expansion of the federal
government's ownership of private financial institutions, to the point where I doubt
today if anyone can truly put a number on it. (The figures tossed around today
make $250 billion look like chump change.) Yet, given the enormous and long-term
impact of the deal struck by Paulson, little is known about what transpired during
this meeting.
Enter Judicial Watch.
On October 16, 2008, we filed a Freedom of Information Act request seeking the
following information: "Any and all records pertaining to the Department of the
Treasury's meeting between Treasury Secretary Paulson and chief executive
bankers on October 13, 2008, including but not limited to meeting notes,
presentations, transcripts, agendas, and supplemental material."
The government initially requested additional time to process the request (aka
"stonewalling"), and then failed to respond altogether. Judicial Watch filed a
lawsuit on January 26, 2009.
We don't know what we'll find. But regardless, the public has a right to know the
truth -- especially as the Obama administration plans to spend trillions of more
dollars on bailouts.
Stay tuned.
FBI Cuts Ties with Radical Islamic Group
Let's close with a victory this week. It appears the federal government is finally
cutting its ties to the terrorist-front group Council on American-Islamic Relations
(CAIR). According to Fox News:

The FBI is severing its once-close ties with the nation's largest Muslim advocacy
group, the Council on American-Islamic Relations, amid mounting evidence that it
has links to a support network for Hamas.
All local chapters of CAIR have been shunned in the wake of a 15-year FBI
investigation that culminated with the conviction in December of Hamas fundraisers
at a trial where CAIR itself was listed as an unindicted co-conspirator.
The U.S. government has designated Hamas as a terrorist organization.
An official at the FBI's headquarters in Washington confirmed to FOX News that his
office directed FBI field offices across the country to cut ties with local branches of
CAIR.
Now, I say the government "finally" cut ties because Judicial Watch and others have
been trying to shut down CAIR since 2001.
In fact, just days after the attacks of September 11th, Judicial Watch filed a
complaint with the Internal Revenue Service calling for the dissolution of 16
Muslim charities serving as front groups for terrorism. CAIR was on that list. Here's
how we put it in the complaint:
Judicial Watch, Inc., the public interest law firm that investigates and prosecutes
government abuse and corruption, hereby files a complaint against certain tax
exempt and other organizations that are, based on publically available information,
reportedly being used as money laundering front organizations for radical Islamic
terrorists, to include but not limited to associates of Osama bin Laden and
"HAMAS," and their operations, in both the United States and abroad.
Judicial Watch also published a special report in 2007 entitled, " Muslim Charities:
Moderate Non-Profits or Elaborate Deceptions," which provided an in-depth
profile on CAIR, calling attention to the organization's deep roots in the Islamic
Jihad movement.
So what took the government so long to take action against CAIR? We asked a
similar question of Steve Emerson in our monthly newsletter the Verdict back in
2007. Mr. Emerson, who is a leading expert in radical Muslim organizations and the
founder of the Investigative Project in Washington, DC, stated that the
government's urgency in shutting down these front groups "is tempered by the
constraints of when you can disclose intelligence and also, political correctness."

We're glad the FBI finally got some sense and ditched a bit of their PC mentality.
Now, rather than meeting with CAIR, the FBI can begin seriously investigating
them.

http://www.judicialwatch.org/weeklyupdate/2009/06-obama-screwed#anchor1

Obama Energy Czar Leads World Socialist

Group
Mon, 01/12/2009

Barack Obama has picked a high-ranking leader of an international socialist group that harshly
criticizes the United States to be the nations energy czar.
The newly created Obama Administration position, officially called Energy Coordinator, will be the
White House guru of energy and climate policy. Carol Browner, who headed the Environmental
Protection Agency under Bill Clinton for nearly eight years, will fill the post.
Also a former Secretary of Florida's Department of Environmental Regulation, Browner is an
established socialist and leader in the Socialist International, an umbrella group for the worlds
socialist parties. A Canadian news organization reported over the weekend that Browners picture
and profile were immediately yanked from the groups web site after Obama officially nominated her
to the energy post.
However, the news site posts Browners profile as a leader of Socialist Internationals Commission for
a Sustainable World Society before Team Obama ordered its removal last week. It features a color
picture and brief biography of Browner as well as the commissions 13 other top officials.
The socialist world commission calls for global governance and says rich nations must shrink their
economies to address climate change. They must also reduce consumption, according to the
commission, and commit to limits on greenhouse gas emissions.

http://www.judicialwatch.org/blog/2009/jan/obama-energy-czar-leads-world-socialist-group

http://www.judicialwatch.org/story/2008/oct/documents-regarding-sen-barack-obamas-previousgroup-associations

Documents Regarding Sen. Barack Obama's

Previous Group Associations
Wed, 10/29/2008 - 16:14

gstasiewicz

Project Vote
documents obtained under the Freedom of Information Act from the Illinois
Secretary of State, Project Votes purpose is to lessen the burdens of government, promote the
According to

social welfare, lessen neighborhood tensions, eliminate prejudice and discrimination, combat
community deterioration, and relieve that [sic] poor and distressed through educating the public about
rights, privileges and opportunities in the area of civic participation, and all permitted activities
incidental to or in furtherance of these purposes.
Barack Obama served as Director for Project Vote in 1992. The organization, which works to register
low-income and minority voters, was founded in 1982. Project Vote is affiliated with ACORN, and the
two organizations work closely together. ACORN reported that Project Vote, a nonpartisan voter
registration organization, became the newest member of the ACORN family of organizations in 1994.
In an article posted on ACORNs website in early October 2008, ACORN and Project Vote
announced the conclusion of the most successful nonpartisan voter registration drive in history,
assisting more than 1.3 million Americans complete applications to register to vote in 21 states.
In November 2007, Senator Obama addressed ACORN and thanked the organization for its work.
While Obama has denied that he had any involvement with ACORN other than some legal work he did
for them in 1995, his statements in 2007 suggest otherwise. In Senator Obamas own words, I've
been fighting alongside Acorn on issues you care about my entire career. Even before I was an elected
official, when I ran Project Vote voter registration drive in Illinois, Acorn was smack dab in the middle
of it, and we appreciate your work.

Documents
Project Vote

Woods Fund
Barack Obama served on the Board of Directors for the Woods Fund from 1997 to 2001. Other
notable board members included William Ayers and Howard Stanback. While many are familiar with
William Ayers and his ties to Obama, many are less aware of Stanback. Howard Stanback may have
helped Obama to secure a deal on his house, and also has close ties to Allison Davis, Obamas former
boss and close business associate with Anton Rezko. In 2000, Allison Davis applied for a $1 million
grant for a housing project, Neighborhood Rejuvenation LP. Obama voted to approve the grant.
The Woods Fund is self described as having exclusively charitable, religious, literary, scientific and
educational purposes. Given its mission as a charitable educational fund, one might not expect to find
the following in its bylaws: No substantial part of the activities of the corporation shall be the carrying
on of propaganda or otherwise attempting to influence legislation (emphasis added). During the five

years Barack Obama sat on the Board of Directors, donations were made to several extremely
controversial organizations.
The Woods Fund gave $60,000 to the Children and Family Justice Center, an organization run by
William Ayers wife, Bernadine Dohrn. The Woods Fund also gave $50,000 to an organization run by
William Ayers himself, the Small Schools Network. The Fund also granted $6,000 to Obamas church,
the Trinity United Church of Christ. It is unknown why the church, ministered to by Reverend Jeremiah
Wright, needed a grant. According to the Woods Funds tax form, the grant is listed as for special
purposes. In addition, the Woods Fund gave $75,000 directly to ACORN.

Documents
Woods Fund

http://www.judicialwatch.org/documents/2008/Project_Vote.pdf

January 9, 2009
http://www.judicialwatch.org/weeklyupdate/2009/03-obama-blago-scandal-update#anchor1

From the Desk of Judicial Watch President Tom Fitton:

Judicial Watch Obtains Documents Re: Blagojevich Contacts with
Obama and Transition Team

When federal authorities arrested Illinois Governor Rod Blagojevich in early

December for attempting to "sell" Barack Obama's vacant Senate seat,
among other corruption charges, focus immediately turned to Barack Obama.
Did the Obama team have any knowledge about the scheme? Obama
vehemently denied he had any contacts with Blagojevich.
Not true, according to documents obtained by Judicial Watch this week from
Blagojevich's office through the Freedom of Information Act. (You may recall
that we filed a FOIA request on December 18th.)
The documents include a December 3, 2008, letter from Barack Obama
following his well-publicized December 2, 2008, meeting with Blagojevich as
well as a November 17, 2008, letter signed by Presidential Transition Team
co-chairs Valerie Jarrett and John Podesta providing Blagojevich with a list of
transition team contacts.
Here are a few excerpts from the letter signed
than one week before the Blagojevich arrest:

by President-elect Obama less

"Thank you for meeting with me on Tuesday in Philadelphia. Vice

President-elect Joe Biden and I were pleased with the open
discussion."
"As we discussed, I would appreciate any advice you can provide to
me and my team on the biggest roadblocks to states in moving
forward in 'getting ready to go' projects started quickly."

"In addition, I welcome any advice you can provide me and my team
on revitalizing and reinvigorating the state-federal partnership. I want
to make it a priority of my Administration to work closely with you."

"I look forward to working with you and hitting the ground running on
January 20th."

I took note of the strong language Obama used in this letter. Clearly he
intended to maintain a close relationship with Blagojevich, who has been
under investigation for a host of scandals for years. And it was interesting to
see Obama solicit Blago for his pork "ready to go" projects.
The November 17, 2008,
states:

letter signed by Jarrett and Podesta, meanwhile,

"On behalf President-elect Barack Obama and Vice Presidentelect Joe Biden we want you to know of our strong interest in
working with you in the months to come. As you may know we
have formed a Presidential Transition Team so that the new
Administration will be prepared to confront the extraordinary
challenges facing our country. Your leadership and experience
will be invaluable in this effort and we hope you will not
hesitate to share your insights during this process."
This letter provides proof that Blagojevich had access to a multitude of
contacts at the highest levels of the Obama transition team while he plotted
to strike a deal with Obama for the Senate seat.
Two questions arise in my mind from Judicial Watch's latest discovery. First, in
the interest of transparency, why did President-elect Obama not release this
letter to the American people? The Obama crowd says the documents were
merely form letters. If they were so innocuous, why didn't Obama release
them himself? What else is Obama hiding?
Buried in the news over Christmas, Obama admitted he was questioned for
two hours by U.S. Attorney Patrick Fitzgerald. How many president-elects
have been questioned in criminal investigatons? Another Obama first? Judicial
Watch's investigation continues...
Judicial Watch Files Senate Lawsuit, Senate and Obama Flip on Burris
Appointment
It's been a roller coaster week for Roland Burris, Illinois Governor Rod
Blagojevich's pick to take over the senate seat left vacant by President-elect
Obama. On Tuesday morning, the Secretary of the Senate denied entry to Mr.
Burris at the direction of Senate leadership because his credentials were "not
in order." The bottom line is Senate leadership (and Barack Obama) did not
want to have to honor the Blagojevich appointment because of the
embarrassing corruption scandals that led to the democratic governor's arrest
in December.
On Wednesday, however, Judicial Watch filed a lawsuit against the U.S. Senate
for denying Mr. Burris his rightful position as junior senator from the State of
Illinois. Here is our argument in a nutshell:
The 17th Amendment to the Constitution allows a state's governor to appoint a
Senator in the event of a vacancy, so long as the governor has the support of

the state legislature. Illinois law specifically mandates that the "Governor shall
make temporary appointment" to fill any vacancy.
The U.S. Constitution also guarantees Illinois taxpayers the right to
representation by two U.S. Senators in the U.S. Senate. Given these facts,
the Senate's refusal to allow Mr. Burris to be sworn in and to assume his
rightful position as member of the U.S. Senate violates the U.S. Constitution.
Given Judicial Watch's aggressive investigations involving Blagojevich's
corruption, it may seem a bit odd that we would support the governor's
appointment. But as I said in press statements earlier this week, Blagojevich
may be a crook, but his appointment of Burris was lawful and must be
respected.
Harry Reid and Barack Obama are caving on the appointment and are
"leaning" towards seating Burris once "legal hurdles" involving the
appointment are cleared. By the way, I love today's Washington Times
editorial, entitled "Outwitting Harry Reid." The Times noted: "And to make
image matters worse it was the conservative watchdog group Judicial Watch
that filed suit to have Mr. Burris seated, not the so-called party of civil rights."
As Judicial Watch noted in its lawsuit, Senate leaders do not have a choice but
to seat Burris. The law is not on their side and they know it.
Judicial Watch Petitions California Supreme Court to Review Laguna
Beach Day Labor Site Lawsuit
This week, Judicial Watch filed a petition with the California Supreme Court to
review a lower court ruling in a Judicial Watch taxpayer lawsuit against the
City of Laguna Beach, California, related to the Laguna Day Worker Center, a
taxpayer funded day labor site that assists illegal aliens. (You may recall that
we filed the lawsuit on behalf of Laguna Beach taxpayers Eileen Garcia and
George Riviere. Our goal is to shut down the site by obtaining a court
declaration that the city's financial support of the site unlawful.)
Here's a brief excerpt from our petition:
"This Court should grant review to resolve this important
question of law that has significant and continuing
consequences in communities across California. Like many
communities, the City of Laguna Beach...has sought to regulate
the street-side solicitation of employment by day laborers. Also
like many communities, the City has chosen a course of action
that runs directly contrary to federal immigration law."
So, why was this appeal necessary?
Well, on November 26, 2008, the Court of Appeal, Fourth Appellate District,
Division Three ruled in favor of the City of Laguna Beach in an unpublished
opinion. I won't get too much into the legal nitty gritty here. (Be sure to read

our petition for the details.) But, in short, the appellate court argued that the
"preemption doctrine," which mandates that state and local governments
cannot implement laws that contradict (or preempt) federal laws, does not
apply to local "procedures and practices" only to "laws and regulations." Since
the expenditure of taxpayer funds is a practice and not a law, the court
argued, the doctrine does not apply.
In our view, this is simply not supported by the law or court precedent. As we
put it in our petition: "Courts have routinely applied the preemption doctrine
to state and local policies, practices, and other actions that undermine or
frustrate federal law."
By way of review, the City of Laguna Beach has expended taxpayer funds to
operate the Laguna Day Worker Center since 1999. According to public
records the City of Laguna Beach provided a $21,000 grant for Fiscal year
2005-06 and a $22,000 financed grant for Fiscal Year 2006-07 to the South
County Cross Cultural Council, a non-profit organization charged with
operating the facility. The City of Laguna Beach also uses taxpayer funds to
provide portable restroom facilities, trash removal, and to pay for leasing the
property from the California Department of Transportation (Caltrans).
The center does not verify whether day laborers are eligible to work in the
United States. According to several studies, the large majority of day laborers
are in the United States illegally and therefore are not eligible to work in the
United States.
If you've been following Judicial Watch's nationwide campaign against illegal
immigration, you know that federal law prohibits the hiring of an
undocumented worker, or referring an alien for employment for a fee,
knowing the alien is not authorized for such employment. Federal law also
requires verification of eligibility to work in the United States.
California is clearly one of the nation's hotspots when it comes to unlawful
sanctuary policies for illegal aliens. (Click here to read about Judicial Watch
campaigns in San Francisco, Los Angeles, Thousand Oaks, and Redondo
Beach.) Communities across the state continue to waste taxpayer funds on
day labor sites for illegal aliens in violation of federal law. The California
Supreme Court can help put an end to this illegal practice once and for all.
Until next week...

HILLARY CLINTON CORRUPTION FILES

Bill Clinton made millions

from foreign sources
By MATTHEW LEE Jan 27, 2009
WASHINGTON (AP) Former President Bill Clinton earned nearly $6 million in speaking
fees last year, almost all of it from foreign companies, according to financial documents filed by
his wife, Secretary of State Hillary Rodham Clinton.
The documents obtained Tuesday by The Associated Press show that $4.6 million of the former
president's reported $5.7 million in 2008 honoraria came from foreign sources, including
Kuwait's national bank, other firms and groups in Canada, Germany, India, Malaysia, Mexico
and Portugal and a Hong Kong-based company that spent $100,000 on federal lobbying last year.
Executives at many of the firms that paid honoraria to Bill Clinton have also donated large
amounts of money to the Clinton Foundation, according to documents it released last year as part
of an agreement with Congress on Hillary Clinton's nomination as secretary of state. That
agreement was aimed at preventing the appearance of any conflict of interest between the expresident's charitable organization and his wife's new job as the United States' top diplomat.
In addition to Bill Clinton's income from speaking fees, Hillary Clinton reported joint holdings
of between $6.1 million and $30.3 million in a blind trust as well as cash, insurance and
retirement accounts worth between $1 million and $5.2 million.
Hillary Clinton made between $50,000 and $100,000 in royalties from her 2003 memoir "Living
History." Bill Clinton earned between $100,000 and $1 million in royalties for his 2004
autobiography "My Life," the documents show. The Clintons reported no liabilities.
All senior officials in the Obama administration are required to complete a detailed disclosure of
their personal finances, including spouse and children, which is updated yearly.
The two men selected to serve as Hillary Clinton's deputy secretaries of state, Jacob Lew and
James Steinberg, also filed financial disclosure forms.
Lew, a former Clinton administration official who recently headed Citigroup's Alternative
Investments unit, reported 2008 salary income of just over $1 million along with numerous
investments, including between $50,000 and $100,000 in State of Israel bonds.
Steinberg, another former Clinton administration official who recently was a professor at the
University of Texas, reported receiving $35,000 in 2008 for foreign speaking engagements,
including three before Japanese media firms and one before the Confederation of Indian
Industries in New Delhi.

The most Bill Clinton got from a foreign source was $1.25 million for appearing at five events
sponsored by the Toronto-based Power Within Inc., a company that puts on motivational and
training programs around North America, according to Hillary Clinton's submission.
For one Power Within speech alone, delivered in Edmonton in June 2008, Clinton was paid
$525,000, the most for any single event that year. For one event, he got $200,000 and for three
others he received $175,000 each, the documents show.
The Hong Kong firm, Hybrid Kinetic Automotive Holdings, paid Clinton a $300,000 honorarium
on Dec. 4, 2008. Twenty five days later, on Dec. 29, a man listed as the company's chief financial
officer, Jack Xi Deng, made a $25,000 cash donation to the Virginia gubernatorial campaign of
Clinton confidant Terry McAuliffe, according to the Virginia Public Access Project.
According to the Center for Responsive Politics, the Hong Kong firm paid at least $100,000 in
2008 to lobbyists on immigration issues.
The other foreign honoraria Bill Clinton received in 2008 are:
_ $450,000 from AWD Holding AG, a German-based international financial services company.
_ $350,000 from the state-owned National Bank of Kuwait. The Kuwaiti government donated
between $1 million and $5 million to the Clinton Foundation, according to the foundation's
disclosure.
_ $300,000 from Value Grupo Financiero SA de CV, a Mexico-based financial holding company,
whose chief executive officer, Carlos Bremer Gutierrez, is one of the Clinton Foundation's
leading donors. Gutierrez donated between $250,001 to $500,000 to the foundation, according to
foundation's documents.
_ $250,000 from Germany's Media Control Gmbh, which bills itself as the world's leading
provider of entertainment data and was founded by Karlheinz Koegel, who contributed $100,001
to $250,000 to the Clinton foundation.
_ $200,000 from Malaysia's Petra Equities Management on behalf of the Sekhar Foundation run
by Malaysian multimillionaire Vinod Sekhar who donated between $25,001 and $50,000 to the
Clinton Foundation, according to its documents.
In addition to the foreign earnings, Bill Clinton made just over $1 million from domestic
speaking engagements, including $250,000 from MSG Entertainment, $225,000 from the
National Association of Home Care and Hospice, $200,000 from the United Nations Association,
$175,000 from the ING North America Insurance Corp., $125,000 from the Rodman and
Renshaw Capital Group and $100,000 from the Hollywood Radio and Television Society.

Judicial Watch Files Lawsuit Challenging

Hillary Clinton Appointment on Behalf of
State Department Foreign Service Officer
Contact Information:
Press Office 202-646-5172, ext 305

Washington, DC -- January 29, 2009

Hillary Clinton Constitutionally Ineligible to Serve as Secretary of State

http://www.judicialwatch.org/news/2009/jan/judicial-watch-files-lawsuit-challenginghillary-clinton-appointment-behalf-state-depa
Judicial Watch, the public interest group that investigates and prosecutes
government corruption, announced today that it has filed a lawsuit against
newly sworn-in Secretary of State Hillary Rodham Clinton on behalf of U.S.
Foreign Service Officer and State Department employee David C. Rodearmel,
(Rodearmel v. Clinton, et al., (D. District of Columbia)). The lawsuit maintains
that Mrs. Clinton is constitutionally ineligible to serve as Secretary of State
and that Mr. Rodearmel cannot be forced to serve under the former U.S.
Senator, as it would violate the oath he took as a Foreign Service Officer in
1991 to "support and defend" and "bear true faith and allegiance" to the
Constitution of the United States.
Under the "Emoluments" or "Ineligibility" clause of the U.S. Constitution, no
member of Congress can be appointed to a civilian position within the U.S.
government if the "emoluments" of the position, such as the salary or
benefits paid to whoever occupies the office, increased during the term for
which the Senator or Representative was elected.
Specifically, article I, section 6 of the U.S. Constitution provides, "No Senator
or Representative shall, during the Time for which he was elected, be
appointed to any civil Office under the Authority of the United States, which
shall have been created, or the Emoluments whereof shall have been
encreased during such time." The text of the provision is an absolute
prohibition and does not allow for any exceptions.
According to Judicial Watch's lawsuit, the "emoluments" of the office of U.S.
Secretary of State increased three times during Mrs. Clinton's most recent

U.S. Senate term. That term, which began on January 4, 2007, does not
expire until January 2013, regardless of Mrs. Clinton's recent resignation.
The lawsuit notes that Congress attempted to evade this clear constitutional
prohibition with a so-called "Saxbe fix" last month, reducing the Secretary of
State's salary to the level in effect on January 1, 2007. This maneuver, first
used in the Taft Administration, has been more frequently used in recent
years by both parties, allowing notably Republican Senator William Saxbe to
become U.S. Attorney General in 1973 and Democratic Senator Lloyd
Bentsen to become Treasury Secretary in 1993. A similar "fix" has been
enacted for Senator Ken Salazar to join the Obama Cabinet as Secretary of
the Interior.
Judicial Watch's lawsuit, however, points out that the legislation "does not
and cannot change the historical fact that the 'compensation and other
emoluments' of the office of the U.S. Secretary of State increased during
Defendant Clinton's tenure in the U.S. Senate . . . ." The U.S. District Court for
the District of Columbia is required to give expedited consideration to the
lawsuit.
"This historic legal challenge should remind politicians of both parties that
the U.S. Constitution
is not to be trifled with," said Judicial Watch President Tom Fitton. "Mrs.
Clinton is constitutionally ineligible to serve as the U.S. Secretary of State
until at least 2013, when her second term in the U.S. Senate expires. We
hope the courts will put a stop to these end runs around the Constitution and
affirm the rule of law."
http://www.judicialwatch.org/news/2009/jan/judicial-watch-files-lawsuitchallenging-hillary-clinton-appointment-behalf-state-depa

Bills Donors Got Hillarys Senate Clout

Tue, 01/13/2009 - 11:53

Judicial Watch Blog

As Hillary Clintons Senate confirmation hearing begins today, a major news organization reveals that
the future Secretary of State intervened at least half a dozen times on behalf of her husbands donors
including the manufacturer of a controversial cervical cancer vaccine linked to 21 deaths and
thousands of adverse reactions.

Clinton regularly used her power as a New York Senator to intervene in government issues directly
affecting companies and individuals that gave hefty sums to Bills presidential foundation, according to
the international news group that obtained official correspondence of the acts through a public
records request.
Among those that benefited from the senators clout is pharmaceutical giant Merck, a member of the
Clinton Global Initiative and manufacturer of Gardasil. The highly controversial human papillomavirus
vaccine has been linked to the deaths of at least 21 young women and girls and nearly 10,000 adverse
reactions including life-threatening effects such as paralysis, severe circulatory problems and seizures.
Judicial Watch has uncovered extensive Food and Drug Administration (FDA) records detailing
Gardasils serious side affects and published a lengthy report outlining the crisis associated with the
vaccine, a top seller that has generated more than $1 billion in revenue for Merck. The report as well
as the FDA documents, obtained through the Freedom Of Information Act, can be viewed here.
Incredibly, Hillary pushed the U.S. government to approve the use of Gardasil in females ages 9 to 26
by writing a letter to Health and Human Services Secretary Mike Leavitt in 2005. To purchase its
coveted spot on the Clinton Global Initiative, Merck has dished out tens of thousands of dollars in the
last few years. Company officials insist they never communicated with either Clinton about passage of
their extremely profitable vaccine, however.
Hillary also wrote to the FDA on behalf of another major Clinton Foundation donor (Barr Laboratories)
that makes the emergency contraceptive known as the morning-after pill and the Federal
Communications Commission to advocate for a benefactor who is the chief executive of a New Yorkbased communications company.
The Commerce Department and the Long Island Power Authority also received letters from Hillary
pushing for the controversial projects of an energy company that gave her husbands foundation at
least $35,000 in just a few years.
These alarming interventions by a powerful elected official at the very least raise ethics issues. They
may also be predictors of Hillarys future activities. Theres no telling what she may push foron
United States Secretary of State letterheadon behalf of her husbands wealthy donors.

http://www.judicialwatch.org/blog/2009/jan/bill-s-donors-got-hillary-s-senate-clout

Clinton urged to reveal more on husband's

donors
http://news.yahoo.com/s/ap/20090113/ap_on_go_co/clinton_letters___dollars_abridg
ed

WASHINGTON Hillary Rodham Clinton, President-elect Barack Obama's choice for secretary of state,
rejected calls Tuesday for more details about donors to her husband's foundation, saying she has
revealed enough to avoid even the hint of conflicts. An Associated Press review found that Clinton
stepped in at least a half-dozen times on issues involving businesses and others who later gave to the
charity.
Clinton said as secretary of state she will not be influenced by her husband's contributors, which include
foreign governments.
"It will not be in the atmosphere," Clinton said.
Richard Lugar of Indiana was among GOP senators on the Foreign Relations Committee pressing for
full transparency about contributors to the William J. Clinton Foundation and one of its main projects, the
Clinton Global Initiative.
Under an agreement with Obama, Bill Clinton recently released the names of donors to his foundation, a
nonprofit that has raised at least $492 million including millions from Saudi Arabia and other foreign
governments to fund his library in Arkansas and charitable efforts worldwide on such issues as AIDS,
poverty and climate change. He pledged to release similar information annually. The donor list doesn't
provide exact amounts, background on donors such as their employers, or the dates of donations.
Lugar, the committee's top Republican, urged Hillary Clinton to immediately disclose donations of
$50,000 or more; alert ethics officials when any gift of that size is pledged or given by a foreign entity,
whether an overseas government, individual or business; and reveal the year a donation was made and
the amount, or at least the range, of a donor's giving in that year.
Hillary Clinton noted that under the agreement, foreign government pledges will be submitted to the
State Department for review. She said it was unprecedented for a former president to agree to the
disclosure her husband has, and that she was confident the current arrangement would avoid even the
appearance of conflicts of interest.
"I don't know who will be giving money," Hillary Clinton said. "When the disclosure occurs, obviously it
will be after the fact, so it would be hard to make an argument that it influenced anybody because we
didn't know about it."
The AP reported Tuesday that Hillary Clinton intervened at least six times in government issues directly
affecting companies and others that later contributed to her husband's foundation. The AP obtained
three pieces of the correspondence under the Freedom of Information Act.
The letters and donations involve pharmaceutical companies and telecommunications and energy
interests; all said their donations to the Clinton foundation had nothing to do with Hillary Clinton's
previous work on their issues.
"Throughout her tenure, Senator Clinton has proven that she acts solely based on what she believes is
best for the state and people she represents, without consideration to any other factor," spokesman
Philippe Reines said.
Hillary Clinton wrote to the Federal Communications Commission in February 2004 expressing concern
that changes to competitive local exchange carrier access rates could hurt carriers such as New Yorkbased PAETEC Communications. PAETEC's chief executive is Arunas Chesonis, whose family and
charity later contributed to the Clinton foundation.

Sarah Wood, executive director of the Chesonis Family Foundation, was invited by a part of the Clinton
Foundation the Clinton Global Initiative to join the initiative after it was established in 2005, Wood
said Monday. The Chesonis family personally paid $15,000 for Wood's membership in CGI in
September 2007, and when membership fees rose to $20,000 in 2008, the Chesonis foundation paid
them in March, Wood said.
The Chesonis Family Foundation made a $10 million pledge in May to the Massachusetts Institute of
Technology for solar energy research, meeting Wood's commitment to the Clinton Global Initiative to act
on a project, Wood said.
Wood said the Chesonis foundation was unaware of the senator's letter to the FCC on the PAETEC
issue and didn't have any contact with her office.
PAETEC spokesman Christopher Muller said PAETEC had no involvement in the Chesonis donations.
PAETEC asked Clinton to intervene with the FCC, he said.
"PAETEC has petitioned numerous elected officials in the markets which we serve in an effort to retain
the spirit of the Telecom Act of 1996," Muller said. The issue is still pending at the FCC, and PAETEC
remains involved, he said.
___
On the Net:
Senate Foreign Relations committee: http://www.senate.gov/foreign/
Clinton Foundation: http://clintonfoundation.org/contributors/
___
Associated Press Writer Anne Flaherty contributed to this report.

http://news.yahoo.com/s/ap/20090113/ap_on_go_co/clinton_letters___dollars_abrid
ged

THE CLINTON FOUNDATION

http://clintonfoundation.org/contributors/index.html

Thanks to the generous support of the individuals and entities listed below, the William J. Clinton Foundation has
had a significant impact on the lives of hundreds of millions throughout the world:

Since 2001, the Foundation has grown to an organization with more than 1,100 staff and volunteers working
in over 40 countries on projects addressing HIV/AIDS, climate change, sustainable economic development and
childhood obesity.
1.4 Million people living with HIV/AIDS are now benefiting from lifesaving treatment purchased under the
Clinton HIV/AIDS Initiative (CHAI) pricing agreements;

40 of the world's largest cities are working with the Clinton Climate Initiative (CCI) to reduce greenhouse gas
emissions;

Nearly 3,000 schools are promoting healthier educational environments due to the work of the Alliance For A
Healthier Generation, a joint venture between the Clinton Foundation and the American Heart Association;

Nearly 1,200 "Commitments to Action" valued at $46 Billion have been made by members of the Clinton
Global Initiative (CGI), improving more than 200 million lives In 150 countries.

The Foundation also designed and developed the Clinton Presidential Library and Center in Little Rock
Arkansas, which opened in November, 2004. More than one million visitors from all 50 states and from around
the world have visited the Clinton Library, the only federally maintained facility to receive a platinum Leadership
in Energy and Environmental Design (LEED) certification.
President Clinton and the Foundation are grateful for the time, talent and resources that so many people have
provided over the years to support their work on worldwide issues that demand urgent action, solutions, and
measurable results.
Click here for more information on the foundation.

http://www.clintonfoundation.org/contributors/pages/page_1.html

Judicial Watch Files Lawsuit Challenging

Hillary Clinton Appointment on Behalf of
State Department Foreign Service Officer

Contact:
Press Office 202-646-5172, ext 305

Washington, DC -- January 29, 2009

http://www.judicialwatch.org/documents/2009/rodearmel-v-clinton-complaint.pdf
http://www.judicialwatch.org/news/2009/jan/judicial-watch-files-lawsuit-challenging-hillary-clintonappointment-behalf-state-depa

Hillary Clinton Constitutionally Ineligible to Serve as Secretary of State

Judicial Watch, the public interest group that investigates and prosecutes government corruption,
announced today that it has filed a lawsuit against newly sworn-in Secretary of State

Hillary Rodham Clinton on behalf of U.S. Foreign Service Officer and State Department
employee David C. Rodearmel, (Rodearmel v. Clinton, et al., (D. District of Columbia)). The
lawsuit maintains that Mrs. Clinton is constitutionally ineligible to serve as Secretary of State and that
Mr. Rodearmel cannot be forced to serve under the former U.S. Senator, as it would violate the oath he
took as a Foreign Service Officer in 1991 to "support and defend" and "bear true faith and allegiance"
to the Constitution of the United States.
Under the "Emoluments" or "Ineligibility" clause of the U.S. Constitution, no member of Congress can
be appointed to a civilian position within the U.S. government if the "emoluments" of the position,
such as the salary or benefits paid to whoever occupies the office, increased during the term for which
the Senator or Representative was elected.
Specifically, article I, section 6 of the U.S. Constitution provides, "No Senator or Representative shall,
during the Time for which he was elected, be appointed to any civil Office under the Authority of the
United States, which shall have been created, or the Emoluments whereof shall have been encreased
during such time." The text of the provision is an absolute prohibition and does not allow for any
exceptions.
According to Judicial Watch's lawsuit, the "emoluments" of the office of U.S. Secretary of State
increased three times during Mrs. Clinton's most recent U.S. Senate term. That term, which began on
January 4, 2007, does not expire until January 2013, regardless of Mrs. Clinton's recent resignation.
The lawsuit notes that Congress attempted to evade this clear constitutional prohibition with a socalled "Saxbe fix" last month, reducing the Secretary of State's salary to the level in effect on January
1, 2007. This maneuver, first used in the Taft Administration, has been more frequently used in recent
years by both parties, allowing notably Republican Senator William Saxbe to become U.S. Attorney
General in 1973 and Democratic Senator Lloyd Bentsen to become Treasury Secretary in 1993. A
similar "fix" has been enacted for Senator Ken Salazar to join the Obama Cabinet as Secretary of the
Interior.

Judicial Watch's lawsuit, however, points out that the legislation "does not and cannot change
the historical fact that the 'compensation and other emoluments' of the office of the U.S. Secretary of
State increased during Defendant Clinton's tenure in the U.S. Senate . . . ." The U.S. District Court for
the District of Columbia is required to give expedited consideration to the lawsuit.
"This historic legal challenge should remind politicians of both parties that the U.S. Constitution
is not to be trifled with," said Judicial Watch President Tom Fitton. "Mrs. Clinton is constitutionally
ineligible to serve as the U.S. Secretary of State until at least 2013, when her second term in the U.S.
Senate expires. We hope the courts will put a stop to these end runs around the Constitution and
affirm the rule of law."

David Rockefeller$137.8 million to Harvard University, the Stone Barns

Center for Food and Agriculture, the Mayor's Fund to Advance New York City,
the American Museum of Natural History Southwest Research Station, the
New York Botanical Garden, and the Museum for African Art. Rockefeller, 93
and heir to the Standard Oil fortune, pledged $100 million to Harvard

University under the condition that the university will receive the gift upon
his death, and an additional $2.5 million, of which nearly $1.3 million has
been paid. Of the $100 million, $70 million will support study-abroad
programs for undergraduates, plus internships, service, and research
programs in foreign countries, and annual stipends for undergraduates
studying abroad who otherwise could not afford to do so. Rockefeller has
directed the remaining $30 million to three new centers where
undergraduates can study original artworks from Harvard's holdings. The
study-abroad portion of the pledge is of special significance to Rockefeller,
who spent the summer of 1933 in Germany and witnessed the rise of
fascism in that country.
"Increasingly it's important for students to spend a significant amount of
time abroad, and I just think that it isn't enough to know just about this
country," he said. "The best way, from my own experience of learning about
other parts of the world, is to go there and meet the people and live with
them."
The study-abroad portion of the pledge is of special significance to
Rockefeller, who spent the summer of 1933 in Germany.
CONFIRMATION OF CONSPIRACY THEORY THAT ROCKEFELLERS
ASSISTED WITH THE RISE OF HITLERS NAZI GERMANY PLACES
DAVID ROCKEFELLER, BY HIS OWN ADMISSION, IN NAZI GERMANY
1933, WITNESSING THE RISE OF FASCISM.

Harvard to Get $100 Million From David Rockefeller

http://www.bloomberg.com/apps/news?
pid=20601103&sid=a4m9KENn1YIE&refer=us
April 25,2008 (Bloomberg) -- Harvard University will get $100 million, the school's biggest
alumni gift, from the retired banker David M. Rockefeller Sr. to finance studies abroad and
advance the arts.
Harvard, the nation's oldest college, said in a statement today that $70 million of the total will be
used to help students participate in programs outside the U.S. Part of remaining $30 million will
go toward renovating Harvard's Fogg Art Museum.
Rockefeller, 92, who graduated from Harvard in 1936 after a period studying in Germany, will
enable more students to take classes, serve as interns, perform research, or travel abroad, the
school in Cambridge, Massachusetts, said. Rockefeller previously gave $40 million to Harvard,
including $25 million to create the David Rockefeller Center for Latin American Studies.
``This is a magnificent act of generosity from an extraordinary friend of Harvard,'' President
Drew Faust said in the statement. ``Our students stand to benefit immeasurably from greater
opportunities to experience other cultures and to engage with the arts.''
Harvard won't receive the gift until Rockefeller's death, the university said. Before then, he will
give the school $2.5 million a year, apart from the $100 million pledge.
Harvard is the richest U.S. school, with an endowment valued at $34.9 billion as of June 30.
Rockefeller is a grandson of John D. Rockefeller, the builder of the original Standard Oil trust,
which was broken up as a monopoly. David Rockefeller Sr. was chairman of Chase Manhattan
Corp., a banking company bought by a predecessor to today's JPMorgan Chase & Co.
The chance to study in Germany changed his life, Rockefeller said in the statement.
`Opened My Eyes'
``Harvard opened my eyes and my mind to the world,'' Rockefeller said. ``I spent the summer of
1933 in Germany and saw firsthand the ominous rise of fascism.''
In recognition of his service to the school, Rockefeller also received an honorary degree from
Harvard in 1969. His oldest son, David Rockefeller Jr., also is a philanthropist who graduated
from Harvard.
Rockefeller's latest pledge matches one made to Harvard in 2005 by Eli Broad, former chairman
of AIG SunAmerica Inc., and his wife, Edythe. The Broads' money was used to help fund a joint

research center with the Massachusetts Institute of Technology, also in Cambridge. The Broads
didn't attend Harvard.
Harvard, which counts seven U.S. Presidents among its graduates, has about 6,700
undergraduates. Last year, 1,450 Harvard undergraduates, more than twice as many as four years
earlier, studied outside the U.S. A school survey of seniors found that others would have gone
abroad if they could have afforded it.
Harvard will charge $47,215 in tuition and mandatory costs in the next school year.
Population Control, Nazis, and the U.N!
by Anton Chaitkin
http://www.tetrahedron.org/articles/new_world_order/UN_Rockefeller_Genocid
e.html

ROCKEFELLER AND MASS MURDER

The Rockefeller Foundation is the prime sponsor of public relations for the United Nations'
drastic depopulation program. Evidence in the possession of a growing number of researchers in
America, England, and Germany demonstrates that the Foundation and its corporate, medical,
and political associates organized the racial mass murder program of Nazi Germany.
These globalists, who function as a conduit for British Empire geopolitics, were not stopped after
World War II. This United Nations alliance of the old Nazi right, with the new left, poses an even
graver danger to the world today than it did in 1941.
Oil monopolist John D. Rockefeller created the family-run Rockefeller Foundation in 1909. By
1929 he had placed $300 million worth of the family's controlling interest in the Standard Oil
Company of New Jersey (now called ``Exxon'') to the account of the Foundation.
The Foundation's money created the medical specialty known as Psychiatric Genetics. For the
new experimental field, the Foundation reorganized medical teaching in Germany, creating and
thenceforth continuously directing the ``Kaiser Wilhelm Institute for Psychiatry'' and the ``Kaiser
Wilhelm Institute for Anthropology, Eugenics and Human Heredity.'' The Rockefellers' chief
executive of these institutions was the fascist Swiss psychiatrist Ernst Rudin, assisted by his
proteges Otmar Verschuer and Franz J. Kallmann.
In 1932, the British-led ``Eugenics'' movement designated the Rockefellers' Dr. Rudin as the
president of the worldwide Eugenics Federation. The movement called for the killing or
sterilization of people whose heredity made them a public burden.
- The Racial Laws -

A few months later, Hitler took over Germany and the Rockefeller-Rudin apparatus became a
section of the Nazi state. The regime appointed Rudin head of the Racial Hygiene Society. Rudin
and his staff, as part of the Task Force of Heredity Experts chaired by SS chief Heinrich
Himmler, drew up the sterilization law. Described as an American Model law, it was adopted in
July 1933 and proudly printed in the September 1933 Eugenical News (USA) with Hitler's
signature. The Rockefeller group drew up other race laws, also based on existing Virginia
statutes. Otmar Verschuer and his assistant Josef Mengele together wrote reports for special
courts which enforced Rudin's racial purity law against cohabitation of Aryans and non-Aryans.
The ``T4'' unit of the Hitler Chancery, based on psychiatrists led by Rudin and his staff,
cooperated in creating propaganda films to sell mercy killing (euthanasia) to German citizens.
The public reacted antagonistically: Hitler had to withdraw a tear-jerker right-to-die film from
the movie theaters. The proper groundwork had not yet been laid.
Under the Nazis, the German chemical company I.G. Farben and Rockefeller's Standard Oil of
New Jersey were effectively a single firm, merged in hundreds of cartel arrangements. I.G.
Farben was led, up until 1937, by the Warburg family, Rockefeller's partner in banking and in the
design of Nazi German eugenics. Following the German invasion of Poland in 1939, Standard
Oil pledged to keep the merger with I.G. Farben going even if the U.S. entered the war. This was
exposed in 1942 by Sen. Harry Truman's investigating committee, and President Roosevelt took
hundreds of legal measures during the war to stop the Standard-I.G. Farben cartel from supplying
the enemy war machine.
In 1940-41, I.G. Farben built a gigantic factory at Auschwitz in Poland, to utilize the Standard
Oil/I.G. Farben patents with concentration camp slave labor to make gasoline from coal. The SS
was assigned to guard the Jewish and other inmates and select for killing those who were unfit
for I.G. Farben slave labor. Standard-Germany president Emil Helfferich testified after the war
that Standard Oil funds helped pay for SS guards at Auschwitz.
In 1940, six months after the notorious Standard-I.G. meeting, European Rockefeller Foundation
official Daniel O'Brian wrote to the Foundation's chief medical officer Alan Gregg that ``it would
be unfortunate if it was chosen to stop research which has no relation to war issues''--so the
Foundation continued financing Nazi ``psychiatric research'' during the war.
In 1936, Rockefeller's Dr. Franz Kallmann interrupted his study of hereditary degeneracy and
emigrated to America because he was half-Jewish. Kallmann went to New York and established
the Medical Genetics Department of the New York State Psychiatric Institute. The Scottish Rite
of Freemasonry published Kallman's study of over 1,000 cases of schizophrenia, which tried to
prove its hereditary basis. In the book, Kallmann thanked his long-time boss and mentor Rudin.
Kallmann's book, published in 1938 in the USA and Nazi Germany, was used by the T4 unit as a
rationalization to begin in 1939 the murder of mental patients and various ``defective'' people,
perhaps most of them children. Gas and lethal injections were used to kill 250,000 under this
program, in which the staffs for a broader murder program were desensitized and trained.
- Dr. Mengele... -

In 1943, Otmar Verschuer's assistant Josef Mengele was made medical commandant of
Auschwitz. As wartime director of Rockefeller's Kaiser Wilhelm Institute for Anthropology,
Eugenics and Human Heredity in Berlin, Verschuer secured funds for Mengele's experiments at
Auschwitz from the German Research Council. Verschuer wrote a progress report to the Council:
``My co-researcher in this research is my assistant the anthropologist and physician Mengele. He
is serving as Hauptstuermfuehrer and camp doctor in the concentration camp Auschwitz.... With
the permission of the Reichsfuehrer SS Himmler, anthropological research is being undertaken
on the various racial groups in the concentration camps and blood samples will be sent to my
laboratory for investigation.''
Mengele prowled the railroad lines leading into Auschwitz, looking for twins--a favorite subject
of psychiatric geneticists. On arrival at Mengele's experimental station, twins filled out ``a
detailed questionnaire from the Kaiser Wilhelm Institute.'' There were daily drawings of blood
for Verschuer's ``specific protein'' research. Needles were injected into eyes for work on eye
color. There were experimental blood transfusions and infections. Organs and limbs were
removed, sometimes without anesthetics. Sex changes were attempted. Females were sterilized,
males were castrated. Thousands were murdered and their organs, eyeballs, heads, and limbs
were sent to Verschuer and the Rockefeller group at the Kaiser Wilhelm Institute.
In 1946, Verschuer wrote to the Bureau of Human Heredity in London, asking for help in
continuing his ``scientific research.''
- Facelift In 1947, the Bureau of Human Heredity moved from London to Copenhagen. The new Danish
building for this was built with Rockefeller money. The first International Congress in Human
Genetics following World War II was held at this Danish institute in 1956. By that time,
Verschuer was a member of the American Eugenics Society, then indistinguishable from
Rockefeller's Population Council.
Dr. Kallmann helped save Verschuer by testifying in his denazification proceedings. Dr.
Kallmann created the American Society of Human Genetics, which organized the ``Human
Genome Project''--a current $3 billion physical multiculturalism effort. Kallmann was a director
of the American Eugenics Society in 1952 and from 1954 to 1965.
In the 1950s, the Rockefellers reorganized the U.S. eugenics movement in their own family
offices, with spinoff population-control and abortion groups. The Eugenics Society changed its
name to the Society for the Study of Social Biology, its current name.
The Rockefeller Foundation had long financed the eugenics movement in England, apparently
repaying Britain for the fact that British capital and an Englishman-partner had started old John
D. Rockefeller out in his Oil Trust. In the 1960s, the Eugenics Society of England adopted what
they called Crypto-eugenics, stating in their official reports that they would do eugenics through
means and instruments not labeled as eugenics.

With support from the Rockefellers, the Eugenics Society (England) set up a sub-committee
called the International Planned Parenthood Federation, which for 12 years had no other address
than the Eugenics Society. This, then, is the private, international apparatus which has set the
world up for a global holocaust, under the UN flag.
[For more information about the Planned Parenthood and Rockefeller connection to AIDS and
disinformation campaigns, read the book "Emerging Viruses: AIDS & Ebola--Nature, Accident
or Intentional?" by Dr. Leonard Horowitz (Tetrahedron, LLC Press, 1996).]
John Davison Rockefeller (1839-1937), the worlds first billionaire, was Americas most
generous philanthropist, fascist financier and Nazi collaborator.
Although Rockefellers wealth was based largely on a near global control of oil refining, he also
had large interests in other monoplies. As Anthony Sutton notes, Rockefeller
controlled the copper trust, the smelters trust and the gigantic tobacco trust, in addition to
having influence in some Morgan properties such as the U.S. Steel Corporation as well as in
hundreds of smaller industrial trusts, public service operations, railroads and banking institutions.
National City Bank was the largest of the banks influenced by Standard Oil-Rockefeller, but
financial control extended to the U.S. Trust Co. and Hanover National Bank [and] major life
insurance companies Equitable Life and Mutual of New York (Wall Street and the Bolshevik
Revolution, 1981).
His incredible rags-to-riches success story owes much to what he
learned from his fathers attitudes towards business and respect
for the public good. Descended from hardworking German
immigrants, his father William Avery Rockefeller was a
travelling, snake oil salesman. Big Bill excelled as a quack
doctor, or pitch man, conning the sick and desperate into buying
expensive remedies that were either useless or downright
dangerous. He would be gone for months and come back with a
great roll of money. He would go to small towns and put up
handbills advertising himself as The Celebrated Dr. Levingston.
He advertised to cure anything, but made a specialty of cancer
and kidney troubles (MacDonald, Double Life, New York
World, February 2, 1908). But these were not Docs only
crimes. He was indicted for rape, but was not arrested or tried. He
fled the area with family and escaped neighbours who accused him of horse thieving, burglary,
arson and counterfeiting. He had two wives, simultaneously, and was a bigamist for 34 years. He
met his second wife in Norwich, Ontario, where he sold lumber in 1853, calling himself William
Levingston.
Williams example provided ample life lessons to his sons about the business values of duplicity,
deceit, and a blatant disregard for public health. John dropped out of high school in 1855 to take
a business course. He worked as a bookkeeper and then teamed up with a friend to start a grain
commission business. In 1863, the Civil War propelled him into the oil business. That year, he

like J.P. Morgan and other rising stars paid $300 to avoid conscription. It was a small price for
them, but unattainable for the thousands who would die. At first, he sold whiskey at inflated rates
to Federal soldiers. Then, he invested his profits in oil refineries. The South had been supplying
turpentine to the North for camphene-fueled lights. When the war cut off the Norths access to
this fuel, kerosene from Pennsylvania oil quickly took over as the lamp fuel of choice and
stimulated his oil business.
In 1865, Rockefeller bought out his partners in the kerosene business for $72,500. In 1870, he
and a few others, organized The Standard Oil Company, with capital of $1 million. He built his
company by buying out competitors, price cutting and controlling secondary businesses related
to pipelines, trains, oil terminals and barrel making. By 1880, his monopoly controlled the
refining of 95% of Americas oil. In 1885, 70% of Standard Oils sales were overseas, largely to
northern Europe and Russia. All of its properties were merged into the Standard Oil Trust with an
initial capitalization of $70 million, and by 1900 Rockefeller controlled about two-thirds of the
entire worlds oil supply. He was also a director of the U.S. Steel Corp when it formed in 1901.
In the 1880s, an oil boom was brewing in Tsarist Russia, around the Caspian Sea town of Baku.
Robert Nobel, the son of Alfred Nobel (originator of Swedens peace prize and the inventor of
dynamite), was soon competing with the Parisian Rothschilds for control of Central Asia oil
treasure. Their exports threatened Rockefellers near global oil monopoly, especially when
Marcus Samuel, future founder of Shell Oil, developed tankers to carry the Rothchilds oil to
Europe and Asia. In 1903, Rockefeller made a deal with the Tsarist government to lease and then
buy the Baku oil fields. Besides selling vast quantities of American oil to pre-Soviet Russia,
Rockefeller also had millions invested there. Thereafter, seeing an inevitable revolution looming
on the horizon, Rockefeller also invested in anti-Tzarist forces to protect this branch of his
empire. The Soviets did expropriate the Caspian oil fields from the Nobels and Rothschilds.
Rockefellers National City Bank also lost assets, thanks to the revolution. Its lawyer, Joseph
Proskauer, fought a legal battle to get Rockefellers money back. In 1926, Walter Teagle, the
president of Standard Oil of New Jersey, successfully negotiated oil concessions in the Soviet
Union.
By that time though, Standard Oils near global monopoly had been broken up. In 1911, the U.S.
Supreme Court decided it was violating anti-trust laws and dissolved it into about three dozen
companies. Many of these are now household names like Chevron (Standard Oil California),
Amoco (Standard Oil Indiana), Mobil (Standard Oil New Jersey) and Exxon, previously called
Esso (Standard Oil New Jersey).
When the U.S. was debating whether to join WWI, a group of so-called War Hawks, calling
themselves the National Security League, knew that this war would be a major boon to profits.
This League of bankers and industrialists, including Rockefeller, J.P. Morgan, Coleman du Pont
and H.H. Rodgers of Standard Oil, promoted increases in arms production and universal military
training. By 1917, they had helped build war hysteria to a fever pitch. But not all Americans
were on their side. The Womans Peace Party, many suffragists and others, strongly opposed
Americas entry into WWI. However, the League was successful and the War Hawks profits
skyrocketed.

Soon after WWI and the Russian revolution, many among Americas wealthy elite felt threatened
by rising radicalism, particularly among unions. In April 1919, letter bombs, destined for John D.
Rockefeller, J.P. Morgan and others, were supposedly discovered in the U.S. postal system. The
media quickly stirred up a massive Red Scare by blaming unions, communists, anarchists and
foreign agitators. John Spivak says: Trade unions were openly disbelieving and denounced with
anger the so-called discoveries as a deliberate frame-up to provide excuses for more raids against
organized labour (A Man in His Time, 1967). This incident and others were used as pretexts for
the Palmer Raids, during which the government rounded up more than ten thousand activists
across the country.
Throughout the 1920s and 1930s, while the persecution of leftists continued, corporate leaders
on the extreme right, continued their criminal rampages in pursuit of profit. Although
Rockefellers many links to Nazism are too numerous to list here, a few examples are worth
noting. In the 1920s, Exxon entered into partnerships with Germanys top chemical cartel
members, BASF and I.G. Farben. The Bank for International Settlements, which helped fund the
Nazis before and during WWII, was created in 1930 by the worlds central banks, including the
Federal Reserve Bank of NY. Its creation was inspired by the Nazi government and its bankers.
Its first president was Gates McGarrah, a Rockefeller banker formerly of Chase National Bank
and the Fed.
In 1932, Chevron
struck oil in Bahrain
and was soon operating
in Saudi Arabia. In
1933, when Hitler
seized power, Standard
Oil New Jersey
supplied Germany with
the patents it required
for tetraethyl lead
aviation fuel. In 1936,
the company Schroder,
Rockefeller Investment
Bankers, included
board directors linked to the Gestapo and several European, Nazi-linked banks. Its lawyers were
John Foster Dulles and Allan Dulles, leading Wall Street fascists who drummed up American
investments in Germany and elsewhere. The Dulles law firm represented I.G. Farben and Fritz
Thyssen. Thyssen was Hitlers biggest German financier. The Dulles brothers later became
Secretary of State and CIA Director, respectively.
In 1937, John D. Rockefeller died, but his legacy of using oil money to grease the wheels of
fascism continued. That year, as the Spanish Civil War raged, Texas Co. (later called Texaco)
fueled Francos fascists. (In 1936, Texas Co. and Standard Oil California formed California
Texas Oil (later Caltex) to combine Texas Cos marketing network in the Middle East with
Standards operations there.) Texas Co. also continued shipping oil to Germany during WWII. In
1938, Brown Brothers, Harriman, the Wall Street investment firm (with senior partners Prescott

Bush and George Herbert Walker) was involved in funding the supply of leaded gas for the Nazi
Luftwaffe. Chevron and Texas Co. created Aramco in 1939, to pump Saudi oil for the Nazi war
machine. In 1940, Texaco provided an office, in their Chrysler Building, for a Nazi intelligence
officer, Dr. Gerhardt Westrick. Executives of Standard Oils German subsidiary were Prominent
figures of Himmlers Circle of Friends of the Gestapo its chief financiers and close friends
and colleagues of the Baron von Schroder a leading Gesatpo officer and financier (Charles
Higham, Trading with the Enemy). Just before WWII, the Rockefellers Chase Bank collaborated
with the Nazis Schroder Bank to raise $25 million for Germanys war economy. They also
supplied the German government with names and background information on 10,000 fascist
sympathizers in America. Throughout WWII, Rockefellers Chase Bank stayed open in Nazioccupied Paris, providing services for Germanys embassy and its businesses.
In 1943, Roosevelts government took control of Rockefellers Aramco. It also seized assets of
the Union Banking Corp., which Harriman, Bush and Walker had built up by collaborating with
Nazi companies that used slave labour. This money was later returned and it launched the Bushes
in oil and politics.
In 1953, after an elected upstart named Dr. Mohammed Mossadegh nationalized Irans oil
business, a UK/U.S.-backed coup returned the Shah to power. CIA Director Allan Dulles and his
brother, Secretary of State John Foster Dulles, were instrumental in this coup. Previously, Irans
oil had been controlled by the Anglo-Persian Oil Co. (i.e., British Petroleum, BP) but after the
U.S. role in this coup, U.S. companies got a 40% share and the top beneficiary was Standard Oil
of New Jersey.
The next year, the Dulles boys were at it again orchestrating a coup in Guatemala. This one
ushered in decades of fascist military governments that killed hundreds of thousands of
innocents. But, it brought great profits for Rockefellers United Fruit Co., in which the Dulles
were invested. Allen had also been on its Board of Trustees.
John D. Rockefeller would be happy to see the re-merging of his great monopoly. In 1988,
Standard Oil merged with British Petroleum. Since then, other mergers have reunited many of
his original oil companies. Exxon and Mobil reunited in 1999, to become the worlds top oil
business. They made profits of $17.7 billion the next year. BP, merging with Amoco and
Standard Oil Ohio, was number two that year and made profits of $12 billion.
J.D. Rockefellers philanthropy has been much lauded. Even as a student, he reportedly gave
donations to his Baptist church and to foreign Sunday schools. By 1900, he offered to buy a
whole church for Baptist preacher Thomas Dixon, a former, southern politician who was then
flogging his white supremacist gospel in New York. But from the pulpit, Dixons fiery tirades
against creeping negroidism didnt reach enough people, so he took up writing respectable,
romantic novels about the KKK. He churned out two dozen books. The Clansman, his racebaiting best seller, extolled the Klans role in redeeming the South. In 1915, it was made into a
movie, called The Birth of a Nation. Endorsed by President Wilson, the film helped revive this
dreaded terrorist organization.

Rockefellers great generosity was aimed largely at medical education, perhaps because of his
fathers career and its peculiar contributions to medicine. J.D.Rockefeller, being a high school
dropout, was not well-suited to his new role as godfather of the countrys centres for higher
learning. His philanthropy was permeated with extremely racist views. In 1901, the Rockefeller
Institute for Medical Research was created. In 1902, the General Education Board (GEB) began
four decades of tremendously controversial influence over American schools and universities.
That same year, J.D. Rockefeller and Averell Harriman, a
business partner of Prescott Bush and George Herbert
Walker in Brown Brothers Harriman, gave $11 million to
create the Cold Spring Harbor Laboratory. Built on
Manhattan property owned by the Dulles brothers, it
spawned Americas ground-breaking eugenics research
and the worlds first racial hygiene laws. By 1907,
Rockefeller funding was heavily influencing Americas
medical institutions. The Rockefeller Institute created the
first genetics lab in 1909. The following year, the
Eugenics Research Association and the Eugenics Records
Office were founded near Cold Spring Harbor, New York,
on land donated by the widow of Averell Harriman. In
1911, John Foster Dulles summed up eugenics, saying
that by eliminating the weakest members of the
population a purer race could be created.
In 1928, Germanys Kaiser Wilhelm Institute for
Eugenics, Anthropology and Human Heredity was
created. Run by Ernst Rudin, Hitlers foremost racial hygienist, the institutes main financing
came from Rockefeller. Ironically, by 1936 an early psychiatrist at that institute, the half Jewish
Dr. Franz Kallmann, had fled Nazism to America. According to Anton Chaitkin, Kallmans
experiments on 1,000 schizophrenics, published by the Freemasons, was used in 1939 to justify
the Nazis mass murder of mental patients and various defective people. Meanwhile, other
Nazi doctors conducted incredibly cruel and vicious experiments on live, captive human
subjects. Their body parts were delivered to [Josef] Mengele, [Otmar] Verschuer and the other
Rockefeller-linked contingent at the Wilhelm Institute.

References:
Edward Jay Epstein, Agency of Fear: Opiates and Political Power in America, 1977
http://www.mega.nu:8080/ampp/epstein/aof2.html
John D. Rockefeller Page
http://voteview.uh.edu/entrejdr.htm
Albert I. Berger, "William Avery Rockefeller of ND: The Father of the Man Who Founded
Standard Oil and his Remarkable Double Life,"
http://www.nd-humanities.org/html/rockefeller.html

Destination New Jersey: Sharing With Standard

http://www.pslc.ws/macrog/exp/rubber/synth/share.htm
Antony Sutton, Wall Street and the Bolshevik Revolution, 1981
http://www.democracyunbound.com/wallstbolshevik.html
Stephen Kinzer, "A Perilous New Contest for the Next Oil Prize," New York Times, Sept. 21,
1997
http://www.mtholyoke.edu/acad/intrel/azeroil.htm
Elijah Zarwan, "Pipeline Politics," World Press Review, Nov.-Dec. 2001
http://www.worldpress.org/specials/pp/front.htm
Richard N. Draheim, Jr., "Oil and 'Socialism,'" The Dallas Libertarian, Feb 19, 1998.
http://www.lpdallas.org/features/draheim/dr980219.htm
Philip Mattera, "The Return of Windfall Profits: An Overview of the Oil Industry," Corporate
Research E-Letter, Mar. 2001.
http://www.corp-research.org/mar01.htm
Texaco History
http://www.texaco.com/texaco/abouttexaco/history.htm
Yagmur Kochumov, "Issues of International Law and Politics in the Caspian in the Context of
the Turkrnenistan-Azerbaijan Discussion and Fuel Transport," Caspian Crossroads, Winter 1999.
ourworld.compuserve.com/homepages/usazerb/422.htm
Caspian Projects II
http://www.fas.org/man/dod-101/ops/war/2000/02/islam/365.htm
Eva Sion, "From 1911 to 9/11: The Institutions of Conspiracy," The Tablet.
http://www.tabletnewspaper.com/politics/66_tftgk.htm
Marcelo Bucheli, The History of the United Fruit Company
http://www.stanford.edu/~mbucheli/bitter.html
Daniel Yergin, The Prize: The Epic Quest for Oil, Money and Power, 1992.
http://www.businessweek.com/chapter/yergin.htm
Dixon, Thomas Jr.: 1864-1946, Writer
http://docsouth.dsi.internet2.edu/dixonclan/about.html
Wyn Craig Wade, The Fiery Cross, 1987
World War I War Hawks and the Passing of the Nineteenth Amendment
http://www.geocities.com/cyberpza007/ww1/WorldWar1WarHawks.html

Dr. Len Horowitz, "The American Red Double-cross"

http://www.tetrahedron.org/articles/apocalypse/red_double_cross.html
http://coat.ncf.ca/our_magazine/links/53/rockefeller.html

CHAPTER FOUR
Standard Oil Fuels World War II
In two gears Germany will be manufacturing oil and gas enough out of soft coal for a long war.
The Standard Oil of New York is furnishing millions of dollars to help. (Report from the
Commercial Attach, U.S. Embassy in Berlin, Germany, January 1933, to State Department in
Washington, D.C,)
The Standard Oil group of companies, in which the Rockefeller family owned a one-quarter (and
controlling) interest,1 was of critical assistance in helping Nazi Germany prepare for World War
II. This assistance in military preparation came about because Germany's relatively insignificant
supplies of crude petroleum were quite insufficient for modern mechanized warfare; in 1934 for
instance about 85 percent of German finished petroleum products were imported. The solution
adopted by Nazi Germany was to manufacture synthetic gasoline from its plentiful domestic coal
supplies. It was the hydrogenation process of producing synthetic gasoline and iso-octane
properties in gasoline that enabled Germany to go to war in 1940 and this hydrogenation
process was developed and financed by the Standard Oil laboratories in the United States in
partnership with I.G. Farben.
Evidence presented to the Truman, Bone, and Kilgore Committees after World War II confirmed
that Standard Oil had at the same time "seriously imperiled the war preparations of the United
States."2 Documentary evidence was presented to all three Congressional committees that before
World War II Standard Oil had agreed with I.G. Farben, in the so-called Jasco agreement, that
synthetic rubber was within Farben's sphere of influence, while Standard Oil was to have an
absolute monopoly in the U.S. only if and when Farben allowed development of synthetic rubber
to take place in the U.S.:
Accordingly [concluded the Kilgore Committee] Standard fully accomplished I.G.'s purpose of
preventing United States production by dissuading American rubber companies from
undertaking independent research in developing synthetic rubber processes.3
Regrettably, the Congressional committees did not explore an even more ominous aspect of this
Standard Oil I.G. Farben collusion: that at this time directors of Standard Oil of New Jersey
had not only strategic warfare affiliations to I.G. Farben, but had other links with Hitler's
Germany even to the extent of contributing, through German subsidiary companies, to
Heinrich Himmler's personal fund and with membership in Himmler's Circle of Friends as late as
1944.

During World War II Standard Oil of New Jersey was accused of treason for this pre-war alliance
with Farben, even while its continuing wartime activities within Himmler's Circle of Friends
were unknown. The accusations of treason were vehemently denied by Standard Oil. One of the
more prominent of these defenses was published by R.T. Haslam, a director of Standard Oil of
New Jersey, in The Petroleum Times (December 25, 1943), and entitled "Secrets Turned into
Mighty War Weapons Through I.G. Farben Agreement."4 This was an attempt to turn the tables
and present the pre-war collusion as advantageous to the United States.
Whatever may have been Standard Oil's wartime recollections and hasty defense, the 1929
negotiations and contracts between Standard and I.G. Farben were recorded in the contemporary
press and describe the agreements between Standard Oil of New Jersey and I.G. Farben and their
intent. In April 1929 Walter C. Teagle, president of Standard Oil of New Jersey, became a
director of the newly organized American I.G. Farben. Not because Teagle was interested in the
chemical industry but because,
It has for some years past enjoyed a very close relationship with certain branches of the research
work of the I.G. Farbenin-dustrie which bear closely upon the oil industry.5
It was announced by Teagle that joint research work on production of oil from coal had been
carried on for some time and that a research laboratory for this work was to be established in the
United States.6 In November 1929 this jointly owned Standard Farben research company was
established under the management of the Standard Oil Company of New Jersey, and all research
and patents relating to production of oil from coal held by both I.G. and Standard were pooled.
Previously, during the period 1926-1929, the two companies had cooperated in development of
the hydrogenation process, and experimental plants had been placed in operation in both the U.S.
and Germany. It was now proposed to erect new plants in the U.S. at Bayway, New Jersey and
Baytown, Texas, in addition to expansion of the earlier experimental plant at Baton Rouge.
Standard announced:
... the importance of the new contract as applied to this country lay in the fact that it made
certain that the hydrogenation process would be developed commercially in this country under
the guidance of American oil interests.7
In December 1929 the new company, Standard I.G. Company, was organized. F.A. Howard was
named president, and its German and American directors were announced as follows: E.M.
Clark, Walter Duisberg, Peter Hurll, R.A. Reidemann, H.G. Seidel, Otto von Schenck, and Guy
Wellman.
The majority of the stock in the research company was owned by Standard Oil. The technical
work, the process development work, and the construction of three new oil-from-coal plants in
the United States was placed in the hands of the Standard Oil Development Company, the
Standard Oil technical subsidiary. It is clear from these contemporary reports that the
development work on oil from coal was undertaken by Standard Oil of New Jersey within the
United States, in Standard Oil plants and with majority financing and control by Standard. The
results of this research were made available to I.G. Farben and became the basis for the
development of Hitler's oil from-coal-program which made World War II possible.

The Haslam article, written by a former Professor of Chemical Engineering at M.I.T. (then vice
president of Standard Oil of New Jersey) argued contrary to these recorded facts that
Standard Oil was able, through its Farben agreements, to obtain German technology for the
United States. Haslam cited the manufacture of toluol and paratone (Op-panol), used to stabilize
viscosity of oil, an essential material for desert and Russian winter tank operations, and buna
rubber. However, this article, with its erroneous self-serving claims, found its way to wartime
Germany and became the subject of a "Secret" I.G. Farben memorandum dated June 6, 1944
from Nuremburg defendent and then-Farben official von Knieriem to fellow Farben management
officials. This yon Knieriem "Secret" memo set out those facts Haslam avoided in his Petroleum
Times article. The memo was in fact a summary of what Standard was unwilling to reveal to the
American public i.e., the major contribution made by Standard Oil of New Jersey to the Nazi
war machine. The Farben memorandum states that the Standard Oil agreements were absolutely
essential for I.G. Farben:
The closing of an agreement with Standard was necessary for technical, commercial, and
financial reasons:technically, because the specialized experience which was available only in a
big oil company was necessary to the further development of our process, and no such industry
existed in Germany; commercially, because in the absence of state economic control in Germany
at that time, IG had to avoid a competitive struggle with the great oil powers, who always sold
the best gasoline at the lowest price in contested markets; financially, because IG, which had
already spent extraordinarily large sums for the development of the process, had to seek financial
relief in order to be able to continue development in other new technical fields, such as buna.8
The Farben memorandum then answered the key question: What did I.G. Farben acquire from
Standard Oil that was "vital for the conduct of war?" The memo examines those products cited
by Haslam i.e., iso-octane, tuluol, Oppanol-Paratone, and buna and demonstrates that
contrary to Standard Oil's public claim, their technology came to a great extent from the U.S.,
not from Germany.
On iso-octane the Farben memorandum reads, in part,
By reason of their decades of work on motor fuels, the Americans were ahead of us in their
knowledge of the quality requirements that are called for by the different uses of motor fuels. In
particular they had developed, at great expense, a large number of methods of testing gasoline
for different uses. On the basis of their experiments they had recognized the good anti, knock
quality of iso-octane long before they had any knowledge of our hydrogenation process. This is
proved by the single fact that in America fuels are graded in octane numbers, and iso-octane was
entered as the best fuel with the number 100. All this knowledge naturally became ours as a
result of the agreement, which saved us much effort and protected us against many errors.
I.G. Farben adds that Haslam's claim that the production of iso-octane became known in America
only through the Farben hydrogenation process was not correct:
Especially in the case of iso-octane, it is shown that we owe much to the Americans because in
our own work we could draw widely on American information on the behavior of fuels in motors.

Moreover, we were also kept currently informed by the Americans on the progress of their
production process and its further development.
Shortly before the war, a new method for the production of iso-octane was found in America
alkylation with isomerization as a preliminary step. This process, which Mr. Haslain does not
mention at all, originates in fact entirely with the Americans and has become known to us in
detail in its separate stages through our agreements with them, and is being used very
extensively by us.
On toluol, I.G. Farben points to a factual inaccuracy in the Haslam article: toluol was not
produced by hydrogenation in the U.S. is claimed by Professor Haslam. In the case of Oppanol,
the I.G. memo calls Haslam's information "incomplete" and so far as buna rubber is concerned,
"we never gave technical information to the Americans, nor did technical cooperation in the buna
field take place." Most importantly, the Farben memo goes on to describe some products not
cited by Haslam in his article:
As a consequence of our contracts with the Americans, we received from them, above and
beyond the agreement, many very valuable contributions for the synthesis and improvement of
motor fuels and lubricating oils, which Just now during the war are most useful to us; and we
also received other advantages from them. Primarily, the following may be mentioned:
(1) Above all, improvement of fuels through the addition of tetraethyl-lead and the manufacture
of this product. It need not be especially mentioned that without tetraethl-lead the present
methods of warfare would be impossible. The fact that since the beginning of the war we could
produce tetraethyl-lead is entirely due to the circumstances that, shortly before, the Americans
had presented us with the production plans, complete with their know-how. It was, moreover, the
first time that the Americans decided to give a license on this process in a foreign country
(besides communication of unprotected secrets) and this only on our urgent requests to Standard
Oil to fulfill our wish. Contractually we could not demand it, and we found out later that the War
Department in Washington gave its permission only after long deliberation.
(2) Conversion of low-molecular unsaturates into usable gasoline (polymerization). Much work
in this field has been done here as well as in America. But the Americans were the first to carry
the process through on a large scale, which suggested to us also to develop the process on a
large technical scale. But above and beyond that, plants built according to American processes
are functioning in Germany.
(3) In the field of lubricating oils as well, Germany through the contract with America, learned of
experience which is extraordinarily important for present day warfare.
In this connection, we obtained not only the experience of Standard, but, through Standard, the
experiences of General Motors and other large American motor companies as well.
(4) As a further remarkable example of advantageous effect for us of the contract between IG
and Standard Oil, the following should be mentioned: in the years 1934 / 1935 our government
had the greatest interest in gathering from abroad a stock of especially valuable mineral oil

products (in particular, aviation gasoline and aviation lubricating oil), and holding it in reserve
to an amount approximately equal to 20 million dollars at market value. The German
Government asked IG if it were not possible, on the basis o fits friendly relations with Standard
Oil, to buy this amount in Farben's name; actually, however, as trustee of the German
Government. The fact that we actually succeeded by means of the most difficult negotiations in
buying the quantity desired by our government from the American Standard Oil Company and
the Dutch English Royal Dutch Shell group and in transporting it to Germany, was
made possible only through the aid of the Standard Oil Co.
Ethyl Lead for the Wehrmacht
Another prominent example of Standard Oil assistance to Nazi Germany in cooperation with
General Motors was in supplying ethyl lead. Ethyl fluid is an anti-knock compound used in
both aviation and automobile fuels to eliminate knocking, and so improve engine efficiency;
without such anti-knocking compounds modern mobile warfare would be impractical.
In 1924 the Ethyl Gasoline Corporation was formed in New York City, jointly owned by the
Standard Oil Company of New Jersey and General Motors Corporation, to control and utilize
U.S. patents for the manufacture and distribution of tetraethyl lead and ethyl fluid in the U.S. and
abroad. Up to 1935 manufacture of these products was undertaken only in the United States. In
1935 Ethyl Gasoline Corporation transferred its know-how to Germany for use in the Nazi
rearmament program. This transfer was undertaken over the protests of the U.S. Government.
Ethyl's intention to transfer its anti-knock technology to Nazi Germany came to the attention of
the Army Air Corps in Washington, D.C. On December 15, 1934 E. W. Webb, president of Ethyl
Gasoline, was advised that Washington had learned of the intention of "forming a German
company with the I.G. to manufacture ethyl lead in that country." The War Department indicated
that there was considerable criticism of this technological transfer, which might "have the gravest
repercussions" for the U.S.; that the commercial demand for ethyl lead in Germany was too small
to be of interest; and,
... it has been claimed that Germany is secretly arming [and] ethyl lead would doubtless be a
valuable aid to military aeroplanes.10
The Ethyl Company was then advised by the Army Air Corps that "under no conditions should
you or the Board of Directors of the Ethyl Gasoline Corporation disclose any secrets or 'knowhow' in connection with the manufacture of tetraethyl lead to Germany.11
On January 12, 1935 Webb mailed to the Chief of the Army Air Corps a "Statement of Facts,"
which was in effect a denial that any such technical knowledge would be transmitted; he offered
to insert such a clause in the contract to guard against any such transfer. However, contrary to its
pledge to the Army Air Corps, Ethyl subsequently signed a joint production agreement with I.G.
Farben in Germany to form Ethyl G.m.b.H. and with Montecatini in fascist Italy for the same
purpose.

It is worth noting the directors of Ethyl Gasoline Corporation at the time of this transfer:12 E.W.
Webb, president and director; C.F. Kettering; R.P. Russell; W.C. Teagle, Standard Oil of New
Jersey and trustee of FDR's Georgia Warm Springs Foundation; F. A. Howard; E. M. Clark,
Standard Oil of New Jersey; A. P. Sloan, Jr.; D. Brown; J. T. Smith; and W.S. Parish of Standard
Oil of New Jersey.
The I.G. Farben files captured at the end of the war confirm the importance of this particular
technical transfer for the German Wehrmacht:
Since the beginning of the war we have been in a position. to produce lead tetraethyl solely
because, a short time before the outbreak of the war, the Americans had established plants for us
ready for production and supplied us with all available experience. In this manner we did not
need to perform the difficult work of development because we could start production right away
on the basis of all the experience that the Americans had had for years.13
In 1938, just before the outbreak of war in Europe, the German Luftwaffe had an urgent
requirement for 500 tons of tetraethyl lead. Ethyl was advised by an official of DuPont that such
quantities of ethyl would be used by Germany for military purposes.14 This 500 tons was loaned
by the Ethyl Export Corporation of New York to Ethyl G.m.b.H. of Germany, in a transaction
arranged by the Reich Air Ministry with I.G. Farben director Mueller-Cunradi. The collateral
security was arranged in a letter dated September 21, 193815 through Brown Brothers, Harriman
& Co. of New York.
Standard Oil of New Jersey and Synthetic Rubber
The transfer of ethyl technology for the Nazi war machine was repeated in the case of synthetic
rubber. There is no question that the ability of the German Wehrmacht to fight World War II
depended on synthetic rubber as well as on synthetic petroleum because Germany has no
natural rubber, and war would have been impossible without Farben's synthetic rubber
production. Farben had a virtual monopoly of this field and the program to produce the large
quantities necessary was financed by the Reich:
The volume of planned production in this field was far beyond the needs of peacetime economy.
The huge costs involved were consistent only with military considerations in which the need for
self-sufficiency without regard to cost was decisive.16
As in the ethyl technology transfers, Standard Oil of New Jersey was intimately associated with
I.G. Farben's synthetic rubber. A series of joint cartel agreements were made in the late 1920s
aimed at a joint world monopoly of synthetic rubber. Hitler's Four Year Plan went into effect in
1937 and in 1938 Standard provided I.G. Farben with its new butyl rubber process. On the other
hand Standard kept the German buna process secret within the United States and it was not until
June 1940 that Firestone and U.S. Rubber were allowed to participate in testing butyl and
granted the buna manufacturing licenses. Even then Standard tried to get the U.S. Government to
finance a large-scale buna program reserving its own funds for the more promising butyl
process.17

Consequently, Standard assistance in Nazi Germany was not limited to oil from coal, although
this was the most important transfer. Not only was the process for tetraethyl transferred to I.G.
Farben and a plant built in Germany owned jointly by I.G., General Motors, and Standard
subsidiaries; but as late as 1939 Standard's German subsidiary designed a German plant for
aviation gas. Tetraethyl was shipped on an emergency basis for the Wehrmacht and major
assistance was given in production of butyl rubber, while holding secret in the U.S. the Farben
process for buna. In other words, Standard Oil of New Jersey (first under president W.C. Teagle
and then under W..S. Farish) consistently aided the Nazi war machine while refusing to aid the
United States.
This sequence of events was not an accident. President W.S. Farish argued that not to have
granted such technical assistance to the Wehrmacht "... would have been unwarranted."18 The
assistance was knowledgeable, ranged over more than a decade, and was so substantive that
without it the Wehrmacht could not have gone to war in 1939.
The Deutsche-Amerikanische Petroleum A.G. (DAPAG)
The Standard Oil subsidiary in Germany, Deutsche-Amerikanische Petroleum A.G. (DAPAG),
was 94-percent owned by Standard Oil of New Jersey. DAPAG had branches throughout
Germany, a refinery at Bremen, and a head office in Hamburg. Through DAPAG, Standard Oil of
New Jersey was represented in the inner circles of Naziism the Keppler Circle and Himmler's
Circle of Friends. A director of DAPAG was Karl Lindemann, also chairman of the International
Chamber of Commerce in Germany, as well as director of several banks, including the Dresdner
Bank, the Deutsche Reichsbank, and the private Nazi-oriented bank of C. Melchior & Company,
and numerous corporations including the HAPAG (Hamburg-Amerika Line). Lindemann was a
member of Keppler's Circle of Friends as late as 1944 and so gave Standard Oil of New Jersey a
representative at the very core of Naziism. Another member of the board of DAPAG was Emil
Helfrich, who was an original member of the Keppler Circle.
In sum, Standard Oil of New Jersey had two members of the Keppler Circle as directors of its
German wholly owned subsidiary. Payments to the Circle from the Standard Oil subsidiary
company, and from Lindemann and Helffrich as individual directors, continued until 1944, the
year before the end of World War II.19
Footnotes:
1

In 1935, John D. Rockefeller, Jr. owned stock valued at $245 million in Stan dard Oil of New
Jersey, Standard Oil of California, and Socony-Vacuun Company, New York Times, January 10,
1935.
http://reformed-theology.org/html/books/wall_street/chapter_04.htm

The Rockefeller Bloodline

One of the 13 Satanic bloodlines that rule the world is the Rockefeller bloodline. Today, there
are around 190 members of this family with the Rockefeller name and of course some
others by other last names. This article is to explore further for those who investigate the
Illuminati, how the Rockefeller bloodline is involved in the promotion of the occult and
Satanism, and how they are involved in the control of the Christian denominations. This
article keys in on just one family, the Rockefellers. To understand the full extent of the
Illuminatis control of religion, including Christendom, would require perhaps several books.
The Illuminati itself draws its lifeblood from around 500 very powerful families worldwide.
This article will not attempt to explain their networks and the many organizations of the
Illuminati. It will not even try to do this for the Rockefellers. In fact, no one knows how
many trusts and foundations the Rockefellers have. They have hidden trusts within secret
trusts within secret trusts. It is estimated that they have between 200 and several thousand
trusts and foundations. The finances of the Rockefellers are so well covered that Nelson
Rockefeller did not pay one cent in income taxes in 1970, yet he was perhaps the richest
man in the U.S. The Rockefellers exert enormous influence over religion in this nation in the
following ways:
1. They provide a large share of the money that Seminaries in the United
States need to operate.
2. They provide a large share of the money that universities need to operate. Education
influences the religious values of our people.
3. They provide large grants to various religious organizations.
4. Their influence and control helps determine who will get publicity in the major news
magazines, and on television.
5. Their influence has contributed to various anti-Christian organizations being set up.
6. They directly help control certain religious groups such as Lucis Trust.
The Rockefellers influence is both subtle and not so subtle.
In the book The Unholy Alliance details are given on how the seminaries, church boards and
Christian colleges have been captured. Much of the money for this came from the
Rockefellers. One of the principle large Foundations that was instrumental in controlling
religious institutions of various kinds was the Sealantic Fund. (They have now shifted to
other channels.) This Foundation which was incorporated in 1938 and was headquartered in
New York City (50 West 50th St.) gave enormous sums of money to manipulate Protestant
concerns. In 1964, according to the Russell Sage Foundations book The Foundation Directoy
the Sealantic Fund gave away $681, 886 in grants.*
In 1969, the Fund gave $1,889,550 in grants.**
By 1984, the Sealantic Fund was not being used. But a look at another Rockefeller nonprofit untaxed Foundation the Rockefeller Brothers Fund shows a revealing grant pattern.
Many people would not be able make any sense out of what seems a random pattern of
grants without the broad picture of what the Illuminati is doing today. My book Be Wise As
Serpents should have clarified how those various groups who receive grants are related and
helpful to the Rockefeller agenda. Although these other Rockefeller Foundations are not
specifically geared toward religion such as the Sealantic Fund was, it is clear these other

Foundations still impact religion.

4 SELECTED GRANTS IN 1984 OF THE ROCKEFELLER BRO. FUND***
Council on Foundations- $41,000 (This money was according to R.B. Fund info Toward work
of project which will carry out recommendations from study that points out lack of
knowledge about global interdependence and about relationship between international and
domestic issues. Emphasis will be placed on information and educational programs to help
funders become more familiar with and learn how to analyze opportunities for international
grant making. Harlem Interfaith Counseling Service-$100,000. Private Agencies
Collaborating Together - $25,000 (encourages collaboration among private development
agencies working in Africa. Asia, and Latin America...) Trilateral Commission - $240,000
8 SELECTED GRANTS IN 1984 OF THE ROCKEFELLER FAMILY FUND & ROCKEFELLER
FOUNDATION****
ACLU -$15,000, AMERICAN HISTORICAL ASSOC. -$42,000, AMER. PHILOSOPHICAL ASSOC.
-$57,500, CATHOLIC UNIVERSITY OF AMERICA -$25,000, CATHOLIC UNIV. OF CHILE $224,200, COUNCIL ON FOREIGN RELATIONS -$165.000, NAACP- $100,000, POPULATION
COUNCIL - $ 1,235,000, UNIV. OF NOTRE DAME - $25,000
Catholic institutions have been large recipients of grants from foundations connected to the
World Order. The Catholic Church, the Episcopalian Church, and the Unitarian-Universal-list
Church are all playing big roles in the New World Order for the Satanists. One ex-Satanist
has talked about visits that were made with the Pope and Vatican leaders, where the Pope
dealt with this person as a member of the Illuminati. In other words the Pope was not in the
Illuminati hierarchy, but he carries out transactions with them, and coordinates his actions
according to their instructions.
We will now go into some depth on the six items above.
1. They provide a large share of the money that Seminaries in the United States need to
operate.
The Union Theological Seminary has operated from Rockefeller funds.***** UTS hasnt
been the only Protestant Seminary receiving Rockefeller funds, but it may be the best
example of a seminary controlled by the Rockefellers. The Sealantic Fund stated under its
purpose and activities, Current interests are primarily Protestant theological education......
******
The President of the Sealantic Fund when it operated was David Rockefeller, and Laurance
(not Lawrence) S. Rockefeller was Vice-President. Steven C. Rockefeller was one of the
trustees.
2. They provide a large share of the money that universities need to operate. Education
influences the religious values of our people.
In 1952, Congressman Eugene E. Cox headed up a committee that for the first time tried to
uncover the Rockefellers (and others) foundations activities. For some reason, Cox
encountered stiff opposition everywhere against his committees investigation, and the
Congressman for some reason got sick and died. One member of the committee,
Congressman Carroll Reese, and his Counsel Rene Wormser attempted to continue the
investigation. Rockefellers henchmen and newspapers did their best to destroy
Congressman Reese. The Reese investigation was given only the barest minimum of time
and little resources for their investigation. However, they were still able to uncover that

beginning in the 1930s vast sums of money were spent in Education by the Rockefeller and
Carnegie foundations. This money went to promote John Dewey, Marxism, a One-WorldGovernment agenda, and Socialism. The foundations (principally the Rockefeller and
Carnegie) stimulated two-thirds of the total endowment funding of all institutions of higher
learning in America during the first third of this 20th century.*******
The NEA (National Education Association was largely financed by the Rockefeller/Carnegie
foundations. A 1934 NEA report advised, A dying laissez-faire must be completely
destroyed and all of us, including the owners, must be subjected to a large degree of social
control. Reece Committee Counsel Rene Wormser wrote of the investigation, ...leads one
to the conclusion that there was, indeed, something in the nature of an actual conspiracy
among certain leading educators in the United States to bring about socialism through the
use of our school systems... They discovered that the Rockefeller foundation was the
primary culprit behind the teaching of socialism in Americas schools and universities and
also behind the NEAs policies. Rene Wormser, Counsel for the Reece Committee reported, A
very powerful complex of foundations and allied organizations has developed over the years
to exercise a high degree of control over education. Part of this complex, and ultimately
responsible for it, are the Rockefeller and Carnegie groups of foundations. This was the
situation in the 1950s when the Reece Committee briefly investigated. The RockefellerCarnegie groups have continued basically unopposed for the next 40 years in controlling
education. One of the educational book producers is Grolier, Inc. Avery Rockefeller, Jr. sits
on Grolier, Inc. board meetings. Another interesting board member is Theodore Wailer who
is the director of Grolier, Inc. He was a member of the International Book Committee of
UNESCO. The Rockefellers maintain great influence in the United Nations.
3. They provide large grants to various religious organizations.
On Jan. 31, 1945, John D. Rockefeller addressed the Protestant Council of the City of N.Y.
and told them that the answer to the problems Christianity was that Christianity needed to
become the Church of the Living God. Many listening that day, may not have realized that
he and other top Illuminati consider themselves gods, and that the solution John D. was
cryptically giving was for Christianity to serve him a living god. (Rockefeller, John D. The
Christian Church- What of its Future? NY:
Protestant Council, 1945, & 1917.)
4. Their influence and control helps determine who will get publicity in the major news
magazines.
The Rockefeller family has enormous controls over various magazines and newspapers. Let
us examine how the power of the press can be used in religion. One of the magazines that
the Rockefellers have some control over is Time magazine. Times board chairman, Andrew
Heiskell was associated with David Rockefeller. Another Illuminatus of the 6th level1 Henry
J. Fisher, ran McCalls Magazine from 1917 to 1956. The establishments media boosted
Anton LaVeys Church of Satan into prominence. The Jan. 31, 1967 New York Daily News ran
a story about Anton LaVey performing the first Satanic wedding ceremony in America. The
March 1970 issue of McCalls ran a nice story about the Church of Satan. Not only is LaVeys
Church of Satan a publicity stunt to make Satanism more popular and to deflect criticism of
real covert Satanism, the McCall issue makes Anton LaVeys church sound even better in the
article than it is. (For those brainwashed folks who think that this free advertising for Anton
LaVey was just for the sake of finding a good story for the Daily News and McCall, I can
show you dozens of better juicier stories that never have seen the light of day--because
they are contrary to what the Illuminati want people to hear. I wont argue that a story on
Satanism may be interesting, I am pointing out that many other interesting stories dont get
printed. Stories are selected by an editor, they dont just happen.) Finally on June 19, 1972

Time Magazine provided more coverage for LaVey with an article The Occult: A Substitute
Faith. Believe me, the sincere devout Christian groups havent ever received such nice free
publicity. Im not referring to men like 33 Mason Billy Graham, who works for the New
World Order and Knights Templar Mason Charles T. Russell, founder of the Watchtower
Society who both received great press coverage. Another minor example, and I am pointing
out minor examples because they occur many times during the course of year, is Van
Danikens UFO books. Lew Wasserman, head of MCA, which owns G.P. Putnams Sons, is a
member of the Rockefeller University Council. G.P. Putnams Sons published Van Danikens
anti-Christian UFO religious theories. Cadence Industries own Marvel Comics. The men on
the board of Cadence sit under David Rockefeller in places like the CFR. Is it any wonder
Marvel Comics promotes the occult and hero's like The Son of Satan? Where does the buck
stop? You say that the Rockefellers dont control subordinates. Bear in mind, that many of
the Rockefellers call themselves Baptists. If they are really Christians dont you think they
could use their influence to stop such terrible things? The point is that the rottenness starts
at the top. The rest of the pyramid has a hard time turning out O.K. when the top of the
pyramid is dedicated to Satan. Rockefeller and Hearst worked together in their news
monopolies. It was Hearst who promoted both books on Satanism and Billy Graham. (If you
learn what I know--the two are not contradictory.) Hearst made Billy Graham who he is
today by financially backing him and publicizing him. Rockefeller was supportive of Billy
Grahams New York Crusade, and the Manhattan-Chase Bank helped Billy Graham out.
5. Their influence has contributed to various anti-Christian organizations being set up.
Maurice Strong is a good friend of the Rockefellers. He has been promoting Mother Gaia
worship. David Rockefeller works with Maurice Strong and his New Age ideas. Reverend
Moon from Korea has been very much loved by the Rockefellers. Moon calls himself Christ
and is setting up a religion promoting internationalism. His religion is also a good testing
ground for brainwashing/recruiting techniques that are being perfected by the NWO. The
Rockefellers have been helping Moon, who also has his primary mansion in NY. Also of
interest is that the prominent political figures that have endorsed Moon are those with ties
to the NWO, and include Ted Kennedy, Mason Mark C. Hatfield, Mason Jesse Helms, &
Illuminatus William F. Buckley, Jr. (See pg. 32-33 of The Puppet Master by J. Isamu
Yamamoto.) A lesser known group is the Spiritual Frontiers Fellowship (SFF) in
Independence, MO. Their address was Exec. Plaza, 10715 Winner Rd, 64052. They were
founded in 1956. Just like Reverend Moon they claim to be Christians, but teach and
practice other things. They teach and practice the occult. Two prominent men in SFF are
Marcus
Bach and Gardner Murphy. They both have interesting backgrounds. Marcus Bach shows the
touch of the Rockefellers. Marcus Bach, born in 1906, is director
of special projects for SFF. The Rockefeller Foundation granted him a fellowship in research
and creative writing from 1934-36. Gardner Murphy was the consultant in
1950 for UNESCO in New Delhi to the Hindus of the Indian Ministry of Education. From
52-68 he was director of research at the Menninger Foundation, Topeka, KS. (Yes,
psychology is led mainly by occultists!) Menninger himself is a member of several
environmental groups for the elite, an Honorary trustee of the Aspen Institute, a
Freemason, member of ACLU, and a close associate of W. Clement Stone. W. Clement Stone
in turn is also a Mason, a member of the occult American Society for Psychical Research,
and the financial backer of the Menninger Foundation. The Federal Council of Churches was
financed to a large extent by Rockefeller money. In my Be Wise As Serpents book I detail
how the FCC was designed to destroy Christianity, how they carefully plotted to make the
creation of the FCC look like a grass roots movement, when it was actually the creation of
the elite (Illuminati). I further detail how the men who ran it were high ranking Masons,
Socialists, and One-Worlders. Also shown is how they carefully manipulated the real gospel

for their own devious ends.

6. They directly help control certain religious groups such as Lucis Trust.
David Rockefeller is part of Lucis Trusts management. Lucis Trust puts out the book
Externalization of the Hierarchy by Alice Bailey which spells out The Plan for the Satanists
and New Agers on how the spiritual Hierarchy (actually the demonic hierarchy) is to
externalize their rule of the planet. The book gives quite a few of the details of the plan, and
is used as a textbook for New Agers at the Arcane Schools in NY, London, and Europe on
how the New Age/One World Religion/One-World-Government will be brought in. If anyone
doubts the Rockefellers commitment to Satan, read page 107 of Externalization of the
Hierarchy. On page 107 Alice Bailey, President of the Theosophical Society and part of Lucis
(formerly Lucifer) Trust, tells us who will rule when the New Age (New World Order) takes
over. On the Earthly level--Humanity so to speak, the Ruler is given on page 107 as Lucifer.
On the Spiritual level--called Shamballa - the Holy City the coming ruler is given as the
Lord of the World which we Christians know as Satan. Lucis Trust knows it is Satan too, but
for public consumption they say that the ruler of the world is Sanat (a scrambling of
Satan) Kumara. They also predict there will be a Christ Consciousness and the Christ
(actually the Anti-Christ) The book Externalization of the Hierarchy teaches repeatedly (see
pages 511-512, 514) that the 3 vehicles to bring in the New Age will be the Masonic Lodges,
(obviously not everyone attends Lodges), next the Churches (this is clearly revealing to us
that men like the Rockefellers are using the churches for the Luciferian plan of Lucis Trust),
and finally Education (Well, of course education. Not everyone attends churches. They need
a safety net to catch everyone in their brainwashing to make us all want to be happy slaves
under the Light-bearer.) The home life of the Rockefellers is decidedly different than for
most people. They have over 100 homes to stay at. The Rockefellers own vast tracts of good
land in various countries in South America, and have nice homes in Brazil, Ecuador, and
their Monte Sacro Ranch, Venezuela. They have two mansions in Washington, D.C. (at
least), numerous ranches around the United States, resorts in Hawaii, Puerto Rico, and the
Caribbean, a 32- room 5th Ave duplex in N.Y., not to mention their place at Seal Harbor,
Maine, and the large estate at Pocantico Hills, NY. It is estimated that they have 2,500
house servants. Over the years, they have built up the reputation of being miserly with their
help, and to each other. (I couldnt begin to know all about the Rockefellers, but I can give a
sampling of some of the many items that surround the real lives of Americas top Illuminati
family.) Winthrop, who is homosexual,, enjoyed living in Arkansas with his black male
friend. He reportedly had the worlds largest porn collection. Winifred Rockefeller Emeny,
Nelsons cousin, murdered her two children and committed suicide.
Michael Rockefeller died when he tried to bribe New Guinea tribesmen with large sums of
money to go head hunt and make shrunken heads for him. The natives had given up head
hunting and Michael couldnt successfully bribe them. Finally getting tired of Michael, the
natives decided to head hunt Michael himself!
Many of the Rockefeller family have had troubled lives, filled with all kinds of fears and
occult activities. It is known that the Rockefellers have frequently built many hidden tunnels
and hidden rooms onto their buildings. They have developed their occult and worldly powers
to the point they consider themselves gods. Their powerful often suffer violent ritual death
as most high level Satanists traditionally go through. One who died in Arizona is known to
have been cremated.
I have often been asked who are the illuminati? Who are the people at the top of the
conspiracy? Who are the generational satanic families? The illuminati consists of 13 magical
and powerful bloodlines. There are also some other powerful bloodlines that are worth
naming but if they are in the Illuminati they have blood ties to one of the 13 powerful
lineages. About half of the Illuminati people I know have had their parentage hidden from

them. Many of the those who still know who their real parents are, still do not know what
bloodline they belong to until the illuminati chooses to reveal it to them. Most of the
Illuminati have MPD. When high level Satanists do not have MPD they very often
emotionally break under the stress of the horrible blood rituals that are required. Recently, a
non-MPD Satanist in Chicago emotionally broke and gave his life to Christ. (I have videos
available of an interview of this man exposing Satanism.) One of the important lineages has
remained secret until 3 investigators named Lincoln, Leigh, and Bageant were spoon-fed
leads and secrets. They put this into a book called "Holy Blood, Holy Grail." I recommend
the book and the two books which are its sequels, because they show how just one part of
the 13 lineages has kept itself secret and has taken immense power of all forms to
themselves. In Southern Belgium there is a castle. (If any one is traveling there and wants
to find the castle, I will show them on the map, and describe it.) This is the Mothers of
Darkness castle. In that castle, is a cathedral and in that cathedrals basement a little baby
Is sacrificed daily and Is coming to power. The pages are written almost round the clock.
(This castle is also described in my Be Wise as Serpents book.) The history in that
handwritten book would reveal the real facts behind the propaganda that the worlds major
news medias give the gullible public. The history as that book reveals it would tell people
about how Abraham Lincoln was a descendent of the Rothschild's. Abraham Uncoin was the
secret head of the Rosicrucian's, a member of their 3 headed top council. (I have seen the
paper trail proof to these things about Lincoln to my satisfaction that these things about
Uncoin are true.) Adolph Hitler was also a secret member of the Rothschild lineage. Hitler
carried out blood sacrifices to open his mind up to high level demonic spiritual control.
Rockefeller sold Hitler oil during W.W. II via Spain to keep W.W. II going longer. The history
in that book mentions people that the history books given the public dont-- like Michael
Augustus Martinelli Von Braun Rheinhold, the most powerful Satanist in the world a few
years ago. Michael Augustus Martinelli Von Braun Rheinhold had 66 Satanic Brides. And that
Satanic book in the Mothers of Darkness castle also mentions the Rockefeller bloodline. Only
insiders are supposed to know the real history of what has taken place in human history.
The real decisions and the real movers and shakers have been hidden from the publics
eyes. What the public is given is a stage show where illuminati puppets parade around and
make big speeches according to their script. Each of the 13 families has their own set of
Mothers of Darkness. Each of the 13 families has their own secret Satanic leadership Kings,
Queens, Princesses and Princes of Darkness. For instance, the Rockefeller family has people
who are selected as Kings and Princes within their own bloodline in secret rituals. The Kings
and Princes, Queens and Princesses are strictly bloodline. They secretly rule over an area of
the world for their own bloodline. This is independent of the illuminati's hierarchy which was
diagrammed in the Jan 1993 newsletter. (my Newsletter from a Christian Ministry.) In the
January, 1993 issue the Covens, Sisters of Light, Mothers of Darkness, and the Grande
Mothers were diagrammed. The illuminati pulls its various bloodlines together under several
councils. The Grande Druid Council or your Council of 13 is your principle council for the
Brotherhood of Death. Above the Council of 13 is a higher Council of 9, and an inner group
of 3 is believed to head that Council of Nine. How do we know about these things? The
power of God has reached into the very heart of Satans empire and pulled out some of the
most powerful Satanists and drawn them to Christ. There are several Satanists that were at
the top which have managed to find Christ. in addition, some of the next echelon of the
hierarchy, such as some of the Mothers of Darkness are also finding Christ. if someone
wants to understand how and why decisions are made in world affairs and by who-- then
you need to study the illuminati. The real answers do not rest with the proceedings of the
Congress of the United States or with the publicly known leaders of the Communist
countries. An example of what I am talking, there is a book entitled "Who Financed Hitler"
by James Pool and Suzanne Pool. I am always glad to see that some people are wiling to
look behind the scenes. Believe me, there were people that Hitler listened to. They were the
people he went to ritual with, and who put him into power.

A CONTINUATION OF THE SERIES OF ARTICLES ON The TOP 13 ILLUMINATI BLOODLINES.

The ROCKEFELLER FAMILY
PREFACE.
The first article about the House of Rockefeller in this newsletter occurred in the Mid-Dec
1992 Vol. No. 13 Issue pp. 3-8. The primary focus of that article was to show how the
family controlled large segments of the Protestant groups in the United States. A secondary
focus of that article was to show the Satanic occult side of the family. An attempt will be
made in this article not to rehash information given out in that earlier article. The
Rockefeller family has been so busy and there Is a large amount of information that can be
provided about them. Therefore my goal with this article Li to provide introductory
information to the readership, and to qualify that what is written In this article Is but the
basics of what should be written about the illuminati activities of this family. Much of my
own material on the Rockefeller family was lost this year and I dont have the time to go
back and research it again. Much of it involved the secret wheeling and dealing that went on
behind the scenes to bring the Rockefellers into wealth and power. Some of the details also
involved their manipulations to control about everything that the Rockefellers can find to
control. Some of the research was on the occult activities of the House of Rockefeller.
THE FIRST NOTORIOUS ROCKEFELLER.
The first notorious Rockefeller that researchers who are not working for the Rockefellers
refer to is William Avery Rockefeller (1810 -1906?). William Avery Rockefeller was totally
corrupt and lacked any type of morals. He was involved in the occult and practiced magic.
He married a number of women around the country in bigamous relationships. He also had
a number of mistresses, and a large number of sexual partners. He was charged with raping
a women and escaped the state of New York to prevent being sent to Jail for it. He stole,
lied, and abused his way through life. He wore the best of clothes, and he never lacked for
money, including gold coins. Besides loving women, he loved gambling. And where did his
money to gamble with come from? He made much of his money dishonestly. His life Is a
carbon copy of other men who are known by this author to have been in the Illuminati. (The
reader also needs to bear in mind that the Illuminati carries out a large number of secret
occult marriages, which only insiders learn about.) One of his wives was Eliza Davidson
(181349). She was an extremely cruel woman. Historians who have been bought off by the
elite like to picture Eliza Davidson as a very pious woman. Although she had a religious
front, there are a number of things in her life that show that she was not the paragon of
virtue that the paid-for historians have made her out to be. When she married William Avery
Rockefeller she moved in with him and his mistress.
THE FIRST NOTABLY RICH ROCKEFELLER.
William Avery Rockefeller had many bastard children, and it can be imagined many children
born for ritual or for the cult. His wife Eliza had six children for him and of those John
Davison Rockefeller is the infamous one who brought the family into limelight. John D.
Rockefeller in his lifetime became on of the most powerful men in the world. One of the
most best kept secrets were his secret dealings with the other Illuminati families. The
Payseurs and other Illuminati families are all intimately involved in the rise to power of the
Rockefellers. The other factors involved in John D. Rockefellers rise to power Is his utter
ruthlessness. He was willing to do anything for power. John o. Rockefeller established the
family in their principal estate at Pocantico Hills in New York. I have lost the exact figure,
but over 100 Rockefeller families live at the private land of Pocantico Hills.
A BRIEF SURVEY OF THE ROCKEFELLERS INFLUENCE
The Rockefellers have divested much of their holdings into places which they control, but

nominally they are not owners of. The Rockefellers financial power Is far greater than the
balance sheets would indicate. The Rockefellers can give donations from an organization
which they control to another that they control, and not lose any control over the money.
The donations look Impressive, but the Rockefeller bloodline hasnt lost. Have you ever
noticed that Rockefellers Standard Oil uses the satanic pentagram in a circle as their logo?
Just three of countless Rockefeller companies are Texas Instruments and General Electric,
and Eastman Kodak. The Rockefellers also control Boeing. This author (Fritz Sprlngmeier)
has repeatedly been given information from numerous sources about the occult activities
that are being perpetrated at the Boeing plants in the Seattle area. Monarch programming
has even taken place at a Boeing Plant. All these things fit together when one gets the
bigger picture and the inside scoop. The Rockefellers also control Delta. Has anyone realized
that the Delta symbol is a very widely used satanic symbol? Is It any wonder so many
Illuminati and CIA, and world financiers, and people like Chuck Colson (see the exposes on
Chuck Colson in 93s newsletters) use Delta to fly on.
My notes are lost, hut suffice It to say the Rockefellers own land all over South America. The
Rockefellers own land most anywhere anyone would want to visit in the US. from Hawaii to
Texas to Florida and Seal Harbor, Maine. Notice how often Bush would go to Maine when he
was President?

The Rockefellers have played a role in Lucis Trust and the United Nations. Interestingly, you
will notice that Prince Charles is the spokesperson for Lucis Trust and also works with the
United Nations in various ways. Prince Charles Is from another satanic bloodline. Readers
need to study my Be Wise As Serpents book to see how Lucis Trust fits into things. The
Rockefellers were involved in the creation of the FBI, so that the FBI has always been an
arm of power for the Illuminati. That is why there are official FBI programs in action today
to kidnap children and provide them for sacrifice. Yes, American people, the wolf was set in
charge of guarding the chicken coop. The organization that is working as part of the FBI is
the Finders. (The stink was so bad that US. News & World Report did a story to soften the
impact of the scandal. See the article on a following page. Ex-Satanists who worked with the
FBI to receive the children the FBI kidnapped and sold to them for sacrifice have been trying
to get the word out publicly about the FBIs corruption. When the Illuminati was beginning
to get exposed in the Franklin Saving & Loan case in Lincoln, NE the FBI was part of the
dirty actors and was part of the cover up. The Rockefellers have had control over the FBI
since they helped get it started. When Congress wanted to investigate the CIA for
wrongdoing the appointed a Commission headed by Rockefeller to investigate the CIAs
wrongdoings! Yes, the Rockefeller Commission did a big study and slapped the hands of the
CIA for a few misdeeds. Their report is still cited as the big investigation of the CIA. Some
investigation! Since the Rockefeller family work hand in hand with the CIA to create
Monarch slaves, of course that part of the CIAs misdeeds got overlooked!
A recent convert from Satanism, Michael McArthur, has given validated inside information
about the FBI and the CIA programs which kidnap children in order to supply Satanic rituals
with sacrificial material. The names of the agents who spend their official government time
kidnapping children for Satanism that Michael knows about are as follows:
Chucky Mike, Peters-FBI hit man in Div, 5 of FBI, involved with ins law case Nichol
Harrah--FBI agent who abducts children for sacrifice
Unda Krieg Satanist working for FBI
Ken Lanning FBI agent who abducts children for sacrifice
Nick OHara FBI hit man, Satanist, has covered FBI child kidnappings by murder Kape
Richardson CIA agent who abducts children for sacrifice
Rather, than risk election, a brilliant coup detat which Is exposed in Be Wise As Serpents.
was carried out to put Nelson A. Rockefeller into the Vice-Presidency.
The Rockefellers control both education and religion in this country by their foundations.

The Rockefellers have played key roles in the C.F.R. Rockefeller wrote the book the Future of
Federalism which supports the union of nations into a world government. For many years
the Rockefellers have been pouring billions of dollars into projects and international groups
which are working to bring in a public One-World government. (The world already has a
secret One-World-Government.) The Rockefellers take part in decisions that effect Russia,
China and other parts of Asla and with good reason, the House of Rockefeller has holdup
and assets in these countries too.
The investigator of the Rockefellers will find that they have secretly had their hand in the
politics of the United States during the 20th century. The decisions and directions this nation
has taken, are the result of countless orders which the Rockefellers have given to their
underlings.
ALONG WITH THIS BRIEF LOOK AT THE ROCKEFELLERS, I HAVE INCLUDED
(not included here because not processed in plain text)
A - A BIBLIOGRAPHY BOOKS FOR FURTHER STUDY,
B - SOME PAGES SHOWING THE POCANTICO ESTATESES,
C - SOME PAGES SHOWING PUBLIC MARRIAGES OF THE ELITE.
BIBLIOGRAPHY & SOURCES
-books-Allen, Gary. Rockefeller. Campaigning For The New World Order. Boring, OR CPA.
Collier, Peter & David Horowitz. The Rockefellers An American Dynasty. New York Holt,
Rinehart and Winston, 1976.
Hoffman, William. David, Report On A Rockefeller. New York: Ly1e Stuart, Inc., 1971.
Josephson, Emanuel M. The Truth About Rockefeller Public Enemy No. 1 Studies in
Criminal Psychopathy New York: Chedney Press, 1964.
Mullins, Eustace. The World Order. Boring. OR: CPA.
other interview with an ex-Rockefeller Monarch slave.
interviews with ex-Illuminati and others who know things about the Rockefellers.

http://www.theforbiddenknowledge.com/hardtruth/the_rockefeller_bl
oodline.htm

http://www.reformation.org/rockefeller.html

Rome, Rockefeller, the U.S. and Standard Oil

The Monarchy of Money!!
The House of Rockefeller is, first and
foremost, THE Invisible Government
of the United States. Invisible
Government is described as
"predatory capital controlling the
wheels of government behind a
smoke screen." (Bealle, The House of
Rockefeller, p. 69).
Rockefeller Presidential Power
Grab Revealed at Last!!

Rockefeller founded the state of "Israel."

From Russia with Love GRAND Duke
Alexander warns the U.S. about the
Rockefeller Empire!!
Quick preview of this expos the BIG
picture!!
Rockefeller Bribery!!
John D. Rockefeller: A Character
Study by Ida Tarbell.

Colonel E. L. Drake drilled the

first oil well in 1859.

Oil Creek, Pennsylvania.

The first U.S. oil discovery was in Clarion County, Pennsylvania, by Colonel Edwin L.
Drake in the year 1859. Subsequently, oil was discovered in Ohio, Oklahoma, Texas,
Kansas, Arkansas, Colorado, Montana, California and the last great find was in Alaska.
The industry grew rapidly until by 1900 it was one of the largest in the country. The
invention of the automobile with the gasoline engine made oil the one indispensable
commodity.

In 1870, the Standard Oil Company was incorporated in Ohio by John D. Rockefeller. It
was illegal under Ohio law (and almost every other State) to control a company in
another state. Rockefeller managed to secretly buy up and control the independent oil
producers and refiners.
In 1883, he moved the seat of empire to the Empire state and set up headquarters in
the Metropolis of Mammon at 26 Broadway in New York City. There he set up a TRUST
or HOLDING company and began to ruthlessly devour all the independent oil producers
and refiners both nationally and internationally:

No. 26 Broadway, former

home of Standard Oil.
Notice the step pyramid
on top!!

"At the lower end of the greatest thoroughfare in the

greatest city of the New World is a huge structure of
plain gray stone. Solid as a prison, towering as a
steeple, its cold and forbidding faade seems to rebuke
the heedless levity of the passing crowds, and frown on
the frivolity of the stray sunbeams which in the late
afternoon play around its impressive cornices. Men
point to its stern portals, glance quickly up at the rows
of unwinking windows, nudge each other, and hurry
onward, as the Spaniards used to do when going by the
offices of the Inquisition. The building is No. 26
Broadway"(Lawson, Frenzied Finance, p. 5).

John D. Rockefeller (18391937)

The world's first billionaire!!

Rockefeller in 1888.

Rockefeller in 1904.

When the Jesuits were expelled from every Catholic country in Europe, their only refuge
was Russia, Great Britain and the United States. Thousands of them flocked to this
country to carry on their war against the Reformation under the banner of U.S. tolerance
and freedom of religion for all. Among them were the Morgans, Roosevelts and German

Roggenfelders. Roggenfelder was later changed to Rockefeller to make the name

sound less German.

]
Roggenfelder Mill in Arinheller,
Germany, operated by Johann
Roggenfeder. Johann was the greatgrandfather of Rockefeller and he
came to America in 1722.

John D. Rockefeller's birthplace at

Richford, New York, about 150 miles from
New York City.

By this time the horrible 30 Years' War in Germany was over but the Jesuits were not
about to give up. There next attach would be from within and would be aimed at political
and financial penetration in order to destroy the Protestant and freedom-loving nations
who had escaped Rome's grasp. The Rothschild Bank (founded 1742), which worked
so closely with the Rockefellers in later years, was part of this conspiracy.
Rockefeller was 22 and already wealthy
when the Civil War began. He refused to
enlist when President Lincoln asked for
75,000 volunteers. Like J. P. Morgan and
the father of Teddy Roosevelt, he paid for a
substitute to fight for him. He even refused
his younger brother the measly sum of
$75.00 to meet enlistment expenses. The
Rothschild controlled National City Bank of
Cleveland gave him his first loan.

Rockefeller was 22 when the Civil

War began. He refused to fight for
the Union.

Rockefeller billions began with BOOZE!!

Rockefeller had a partner by the name of William M. Flagler. Flagler married the niece
of a man named Stephen V. Harkness. Harkness owned a WHISKEY DISTILLERY.
Rockefeller made a fortune by selling WHISKEY to the Union army:
"Rockefeller had been watching Flagler, his neighbor in the Case Block. He had
shrewdly appraised the talents of that gentleman. But he had also perceived something
else. Flagler had married the niece of a man who had lately made a great fortune. This
man was Stephen V. Harkness. Harkness owned a distillery near Monroeville, Ohio.
Toward the end of the war when the government was raking the land with a fine-tooth
comb for values to tax, it fell naturally upon whiskey. John Sherman knew the
government was going to put a heavy excise upon whiskey and he mentioned the fact
to his friend, S. V. Harkness. Harkness needed nothing more than this tip. He
proceeded to buy up with all the funds he could collect every barrel of whiskey he could
lay hold of. When the tax was levied, Harkness found himself with an enormous amount
of untaxed whiskeys which he could sell at the high prices exacted because of the tax.
He promptly turned his investment into cash. This provided him with one of the amplest
fortunes in Cleveland. Rockefeller knew of this adventure. And here was Flagler,
Harkness' nephew by marriage, at Rockefeller's very door. Here was an entree to
Harkness' treasure chest" (God's Gold, p, 134).

Rockefellers control U.S. oil industry

The first giant trusts or monopolies were formed by the Morgans and Rockefellers. The
Rockefellers set about to created a huge oil monopoly which would completely
dominate the industry. The invention of the automobile and the gasoline engine gave
them a virtual stranglehold on the country. Instead of conserving oil and finding an
alternative to the wasteful gasoline engine they encouraged waste and consumption of
a non-renewable resource.
"As a member of the board of directors of the Chicago, Milwaukee & St. Paul Railroad,
William Rockefeller had long ago struck up a warm friendship with James Stillman, the
president of the National City Bank. The latter, stirred at all he learned of the efficiency
of the Standard Oil management, and of its hierarchic and centralized government, so
much like that of the Roman Catholic Church, modeled his own bank after it. He bought
Standard Oil stock and became one of the family. Sphinx like, autocratic, silent, he
came closer always to the Rockefellers whom he so much resembled" (The Robber
Barons, p. 399).

Rockefellers issue "U.S." Money!!

The U.S. government does NOT issue the U.S. "paper" money. The Federal Reserve
Notes are issued by the Rockefeller founded and controlled Federal Reserve Bank. It is
a PRIVATE Bank and is not part of the U.S. government. The Federal Reserve Bank
has the power to create money out of nothing and with access to unlimited credit has

financed ALL the wars of the 20th century and will finance the coming aggression
against Iraq.

Former home of William Rockefeller on

Jekyll Island, Georgia, This was where
the 3rd Bank was secretly chartered
leading to the greatest theft of the
people's money in all the long history of
crime.

Federal Reserve Note. This is

Rockefeller "money" even though
it says "United States of America."

Article I, Section 10, U.S. Constitution:

No State shall coin Money, emit Bills of Credit, make any
Thing but gold and silver Coin as Tender in Payment of Debts.

Rockefellers control U.S. "medical" profession

Around the turn of the century, when the alien force was hijacking the American
Government, the Rockefeller Institute also created a sinister monopoly of the American
medical profession. Its director was Simon Flexner a German Jew/Jesuit "doctor."
Here is a quote from one of their propagandists named Abraham Flexner who was part
of the Rockefeller Institute:
"...The curse of medical education is the excessive number of schools. The situation
can improve only as weaker and superfluous schools are extinguished." (Abraham
Flexner 1910).
There you have it . . . . too many medical schools producing too many doctors. In those
days, medical students attended college for 2 years and then learned the healing arts
from other doctors. To the monopolists however, this great system did not allow for 8
years of brainwashing in Jesuit controlled universities and colleges.
Rockefeller used the same tactics with the medical schools as he did with his business
rivals: sell out or be forced to close. From about 160 medical schools the number was
reduced by half.

Rockefeller buys Encyclopedia Britannica!!

Yes! the Rockefeller Syndicate owns the venerable old Encyclopedia Britannica that so
many people consider the "final authority." In 1890, Rockefeller took over a Baptist
Seminary called Morgan Park Theological Seminary and renamed it the University of
Chicago.
In 1900 the Encyclopedia was bought from the publishers in Scotland. The University of
Cambridge now did the editing for the new owners across the pond.
We don't know how much he paid as he always used proxies or front men . . . but you
can be sure that it was the lowest possible price.....Roman Catholic editors were soon
put to work expunging all derogatory references to Rome:
"The revision of the Encyclopedia Britannica was undertaken with a view to eliminate
matter which was objectionable from a Catholic point of view and to insert what was
accurate and unbiased. The whole of the 28 volumes were examined, objectionable
parts noted, and the reasons for their deletion or amendment given. There is every
reason to hope that the new edition of the Britannica will be found very much more
accurate and impartial than its predecessors (Lies and Fallacies of the Encyclopedia
Britannica., p. 4)."
And they did exactly that....All the true history of the Papacy, the Jesuits, and the
infernal Inquisition were removed along with all derogatory references to vaccination.

Rockefeller "buys" U.S. Government!!

Rockefeller and 1911.
On May 15, 1911, the Supreme Court of the United States ruled that the Standard Oil
Cartel was a menace to the Republic and ordered it to be broken up:
"For the safety of the Republic we (U.S. Supreme Court) now decree that the dangerous
conspiracy must be ended by Nov. 15, 1911 "(John D. A Portrait in Oils, p. 154).
Rockefeller vowed revenge against the U.S. and used his vast fortune to BUY the U.S.
government.
The breakup of the Standard Oil monolith resulted in about 37 new companies.
Rockefeller still secretly controlled them all by owning a voting majority of stock in the
new corporation. Thus Standard Oil would be known as Standard Oil New Jersey
(Exxon), Standard Oil New York (Mobil), Standard Oil Indiana (Amoco), Standard Oil
California (Chevron), Atlantic Refining (Arco) etc., etc. It was business as usual at 26
Broadway -- the headquarters of the giant.

3 years later they ordered the Kaiser to invade Belgium and start W. W. I. Their plan
was to keep Germany and England fighting until the U. S. intervened. Herbert Hoover
(another Standard Oil employee) was put in charge of the Belgium Relief Commission.

Rockefeller control U.S. "Education."

Rockefeller "Education" Board in 1915.

Trustees of the General Education

Board, the first Rockefeller foundation,
at a retreat in Rockland, Maine, in July
1915. Front row, from left: Edwin A.
Alderman, Frederick T. Gates, Charles
W. Eliot (former president of Harvard
University), Harry Pratt Judson
(president of University of Chicago),
Wallace Buttrick (executive officer of
the Board). Second row, from left:
Wickliffe Rose (head of the
Rockefeller public health programs),
Hollis B. Frissell, John D. Rockefeller,
Jr., E. C. Sage, Albert Shaw, Abraham
Flexner. Third row, from left: George
E. Vincent (president of the
Rockefeller Foundation), Anson
Phelps Stokes, Starr J. Murphy,
Jerome D. Greene.

Rockefeller the "Christian."

Rockefeller had the perfect disguise. He was
a devout Baptist "Christian" and attended
church regularly. He even led a Sunday
school class in the Fifth Ave. Baptist church in
New York City. However, by the turn of the
century he was also the most hated man in
America. His "handlers" recommended an
image change. It was then that he started
giving millions to charity. Now in the Bible that
Rockefeller read there is a verse that says:

"Baptist" Rockefeller with

"Therefore when thou doest thine arms

(charity), do not sound a trumpet before thee,
as the hypocrites do in the synagogues and
in the streets, that they may have glory of
men. Verily I say unto you, they have their

bodyguard marching in the

Easter parade in 1907.

reward. But when thou doest alms, let not thy

left hand know what they right hand is doing"
(Matt. 5:2-3).

By owning all the newspapers in the country he was able to sound the trumpet loud and
clear about his charitable contributions. Rockefeller Junior even built a church in New
York City called the Riverside Church. It was there that Dr. Martin Luther King gave his
famous anti-war speech!!

Rockefeller did not let his left hand know what his right
hand was doing!!
When Jesus told the people in His Sermon on the Mount not to let your left hand know
what your right is doing, He was talking about giving to charity or doing good deeds.
Ultra secretive Rockefeller took that verse and applied it to his business instead!!

The South Improvement Co. was the forerunner of the

Standard Oil Company. Everybody involved with the company
was sworn to the strictest secrecy. Men were warned not even
to tell their wives of their activities. J. P. Morgan and the
Rothschild Bank already owned the railroads and they were
giving illegal rebates to the S. I. Co. This had the effect of
ruining the independent refiners and forcing them to sell out at
a tremendous loss or face financial ruin!!
A flyer that was
distributed in the oil
regions about the
predatory practices of the
South Improvement Co.
The South Improvement Company was the forerunner of Standard Oil. It was chartered
in Cleveland, Ohio, and was a front for the counter-Reformation Rothschild Bank. It's
sphere of activity was virtually limitless. (See History of the Standard Oil Co.,Vol. I, by
Ida Tarbell, pages 56 and 75).

The Twin Towers were called David and Nelson

Rockefeller!!

Governor Nelson
Rockefeller (left) with Mayor
John Lindsay inspect model
of Twin Towers.

David and Nelson on

Wall St. during Nelson's
1970 race for Governor
of New York State.

David Rockefeller was

Chairman of Chase
Manhattan Bank and
provided the finances for the
Twin Towers.

"The country, then, or New York State, therefore possesses two architectural
monstrosities single-handedly produced by rivalrous Rockefeller brothers at taxpayers'
expense. For at the end of the line the taxpayer in both these cases foots the bill, as he
does for everything else financial politicos devise. The two structures therefore
represent a double screwing.
The two oppressive structures stand, one in New York City, the other in Albany, like
giant bookends of the gods, with Rockefellerland-on-the-Hudson stretching in between,
the home domain. In the meantime, ordinary citizens crawl along in the overpowering
structural shadows like bugs, reduced in physical proportion to their true spiritual
proportions in the established scheme of things: nothings, serfs. Neither structure is
anything the psyche can humanly absorb. Each repels" (The Rockefeller Syndrome by
Ferdinand Lundberg, p. 24).
The Twin Towers were affectionately named David and Nelson Rockefeller because
they were the driving force behind their construction. Immediately after their demolition
on 9-11-01, the Rockefeller Syndicate controlled Pentagon invaded Afghanistan and set
up bases by the Caspian sea. Caspian sea oil, controlled by Russia, was the main
competition to Standard Oil since 1890!!

"Russian competition was the subject of many top-level conferences at the

headquarters of the Trust at 26 Broadway in New York. One of the methods of
meeting the threat was price-cutting" (The Rockefeller Billions, p.165).

Rockefeller's father was a con-man

William Rockefeller, father of John

D. was also known as "devil Bill."

The tombstone of William Avery

Rockefeller --a.k.a. Dr. William
Levingston -- in Freeport, Illinois.

William Rockefeller, father of John D. was also known as "devil Bill."

William Avery Rockefeller was the father of John D. His neighbors called him "devil Bill."
He was a horse thief, a rapist and a bigamist. He had 2 families and 2 wives at the
SAME time. He was a medicine man and ran a traveling medical road show which
dispensed cancer cures to the ladies. He was known in some towns as "Doc"
Rockefeller and in other towns as "Doc" Levingson. It was from his father that the son
got his interest in "medicine."

Rockefeller and the Russian Revolution

By 1880, the Vatican-Rockefeller-Standard Oil cartel
completely dominated the domestic and foreign
markets for kerosene. All competition was ruthlessly
crushed by this juggernaut. Then a rival appeared in
the form of Russian oil. A Swede named Robert Nobel
built a refinery in BAKU on the Caspian sea. He
began to produce cheaper and better oil but was shut
out of European and world markets by Standard Oil.

Joseph Stalin (1879 1953). A Rockefeller

Syndicate employee!!!

Rapid growth in Russian oil production had been

achieved despite political upheaval that had
enveloped the country since the turn of the century,
much of which had been centered in the countrys oil
capital, BAKU. Strikes by oil workers had been a
regular feature of the protests against the Tsar in 1903

and 1904, and were a major factor in the 1905

revolution, in which the former Josef Dzhugashvili
played a significant, anti-Tsarist role. As a result of his
revolutionary activity he fostered in BAKU at that time,
Dzhugashvili was exiled to Siberia. Later, he would
become better known as Josef Stalin.

Rockefeller and the U.N.

United Nations building in New York

City.

John D. Rockefeller, III, (right) presents a

check in the amount of $8,5000,000 to
Trygve Lie, First Secretary General of the
United Nations. The money is to purchase
the land on Manhattan Island which will
house the U.N. building.

Vital Links
John D. Rockefeller: a character study by Ida M. Tarbell
Standard Oil and the Rise of Hitler
The Bush Family and the Rockefellers
Rockefellers massacred striking mine workers in Colorado.

Rockefeller and Standard Oil are the Founders of the State of "Israel."
Murder by Injection: the Rockefeller Syndicate, by Eustace Mullins.
From Russia with Love -- GRAND Duke Alexander warns Americans about the
Rockefeller Empire!!
References
Abels, Jules. The Rockefeller Billions: The Story of the World's Most Stupendous
Fortune. The Macmillan Co., New York, 1965.
Allen, William H. Rockefeller, Giant Dwarf Symbol. Institute for Public Service, New
York, 1930.
Bealle, Morris A.The House of Rockefeller. All America House, Washington D.C., 1959.
Brown, Richard E. Rockefeller Medicine Men. University of California Press, Los
Angeles, 1979.
Chernow, Ron. Titan: the Life of John D. Rockefeller, Sr. Random House, New York,
1998.
Denny, Ludwell. We Fight for Oil, Alfred A. Knopf. New York, 1928.
Flynn, John T. God's Gold: The Story of Rockefeller and His Times. Harcourt, Brace &
Co., New York, 1932.
Griffin, Edward E.World Without Cancer. American Media, Westlake Village, CA.
(Exposes the Rockefeller Institute suppression of the cure for cancer).
Higham, Charles. Trading with the Enemy: An Expos of the Nazi-American Money Plot
1933-1949. Delacorte Press, New York, 1985. (Documents the fact that Standard Oil of
New Jersey supplied Hitler with gasoline all during W W II).
Hoffman, William. David: Report on a Rockefeller. Lyle Stuart, New York, 1971.
Josephson, Emanuel M. The Truth About Rockefeller "Public Enemy #1" Studies in
Criminal Psychopathy. Chedney Press, New York, 1964.
Josephson, Emanuel M.The Federal Reserve Conspiracy & Rockefellers: Their Gold
Corner. Chedney Press, New York, 1968.
Josephson, Matthew.The Robber Barons. Harcourt, Brace & Co., New York, 1934.

Klein, Henry H. Standard Oil or The People. Published by the author at the Tribune
Building, New York City, 1914.
Klein, Henry, H. Dynastic America and Those Who Own It. Published by the author in
New York City, 1921. (Henry H. Klein was First Deputy Commissioner of Accounts of the
City of New York).
Lawson, Thomas. W. Frenzied Finance, The Crime of Amalgamated. Ridgway-Thayer
Co, Boston, 1905. Reprinted by Greenwood Press Publishers, New York, 1968.
Lionni, Paola.The Liepzig Connection: The Systematic Destruction of American
Education. Delphian Press, Sheridan, Oregon, 1988. (Great expose of Rockefeller's
destruction of our schools).
Lloyd, Henry Demarest. Wealth Against Commonwealth. Harper and Brothers, New
York, 1894.
Lundberg, Ferdinand. The Rockefeller Syndrome. Lyle Stuart Inc., Secaucus, New
Jersey, 1975.
Lundberg, Ferdinand. America's 60 Families. The Vanguard Press, New York, 1937.
Mc Cabe, Joseph.The Lies and Fallacies of the Encyclopedia Britannica: How Powerful
and Shameless Clerical Forces Castrated a Famous Work of Reference. Borderland
Sciences, Garberville, CA. (not dated).
Manchester, William. A Rockefeller Family Portrait. Little, Brown and Co., Boston,
Toronto, 1959.
Nevins, Allan. John D. Rockefeller: The Heroic Age of American Enterprise. (in 2
volumes), Charles Scribner's Sons, New York, 1941.
Rogers, William, Rockefeller Follies. An Unauthorized View of Nelson A. Rockefeller.
Stein & Day, New York, 1966.
Sinclair, Upton. King Coal. Bantam Books, New York, 1917. (This book is about the
horrible massacre of striking mine workers in Colorado called The Ludlow Massacre).
Solberg, Carl. Oil Power: The Making of a Monopoly.Mason/Charter Publishing Co.,
New York, 1976.
Tarbell, Ida M. History of the Standard Oil Company. in 2 volumes, Mc Clure, Phillips &
Co., New York, 1904.
Winkler, John K. John D. A Portrait in Oils. Vanguard Press, New York, 1929.

Nelson Rockefeller's Presidential Power Grab

Revealed at Last!!
By Appointment Only!!

When a non-elected person can become president of a country . . . that is not

a democracy . . . it's a DICTATORSHIP!!
After the assassination of President Kennedy, Lyndon Johnson became President.
Johnson had no Vice President until 1964 . . . but neither did President Truman for over
3 years and the government continued to function smoothly.
In 1965, Johnson introduced the 25th or Rockefeller Amendment that would allow the
President to APPOINT a Vice President.
Johnson decided not to run for reelection in 1968 due to the unpopularity of the Vietnam
War and the massive protests in the streets.
Here is the timeline of the momentous and fast moving events that almost made Nelson
Rockefeller President by appointment only:

Date

Event

November Assassination of President Kennedy in Dallas, Texas.

22, 1963. Lyndon Johnson becomes President.
July 6,
1965.

25th Amendment is sent to the states for ratification.

February
10, 1967.

25th Amendment is ratified by 3/4 of the states.

November Richard Nixon is elected President. His Vice President

5, 1968.
is Spiro Agnew
October
10, 1973.

Vice President Spiro Agnew is forced to resign over

"tax fraud."

December Gerald Ford is named Vice President the first use of

6, 1973.
the 25th Amendment.
August 9,
1974.

President Nixon is forced to resign over Watergate.

August 9,
1974.

Gerald Ford becomes the 38th President of the United

States and the first by appointment only.

December Nelson Rockefeller is appointed Vice Presidentonly a

19, 1974. heartbeat away from the Presidency!!
Nelson's timing was perfect. Here is the wording of the Truman sponsored 22nd
Amendment:

"Section 1. No person shall be elected to the office of the President more than
twice, and no person who has held the office of President, or acted as
President, for MORE THAN TWO YEARS of a term to which some other
person was elected President shall be elected to the office of the President
more than once."
According to the terms of this Amendment, if Ford had a timely demise in '75 or '76,
Rockefeller was still eligible to serve 2 full terms or 8 years as President. That was more
that enough time to finish his Twin Towers and start World War III.

Order of succession to the Presidency of the U.S.

Act of 1792

Act of 1886

Act of 1947

1. President

1. President

1. President

2. Vice President

2. Vice President

2. Vice President

3. President Pro Tempore

of Senate

3. Secretary of State 3. Speaker of the House

4. Speaker of the House

4. Secretary of the
Treasury

4. President Pro Tempore of

Senate

The 25th Amendment or the Rockefeller Amendment made the

1947 Order of Succession NULL AND VOID because the
President was given the power to APPOINT a Vice President if

the Vice President died or was forced to resign!!

The 25th Amendment or the Rockefeller Amendment to

the Constitution!!
(The proposed Amendment was sent to the states July 6, 1965, by the Eighty-ninth
Congress. It was ratified Feb. 10, 1967).
Section 2
[Vacancy in office of Vice President.]
"Whenever there is a vacancy in the office of the Vice President, the President shall
nominate a Vice President who shall take office upon confirmation by a majority vote of
both Houses of Congress."
In Article II of the Constitution, the Vice President followed the President in the line of
succession. The Framers of the Constitution declared that CONGRESS shall declare
who is next in line after the Vice President:
"In Case of the Removal of the President from Office, or of his Death, Resignation, or
Inability to discharge the Powers and Duties of the said Office, the same shall devolve
on the Vice President, and the Congress may by Law provide for the Case of Removal,
Death, Resignation or Inability, both of the President and Vice President, declaring what
Officer shall then act as President, and such Officer shall act accordingly, until the
Disability be removed, or a President shall be elected.) (This clause in parentheses has
been modified by Amendments XX and XXV)."
A Presidential Succession Act of 1792 provided that after the vice president, the next
officials in line would be the president pro tempore (presiding officer) of the Senate and
the Speaker of the House of Representatives.
In 1886, this Succession Act was changed again to make the Secretary of State next in
line followed by the other Cabinet Secretaries in the order in which their departments
were created. Here is seen the rising power of Rockefeller oil money to change the U.S.
Constitution.
In 1947, President Harry Truman changed the succession back to what it was in the
beginning; with one exception: The Speaker of the House was put BEFORE the
President of the Senate.

The Reason why President Truman changed the

Succession Act in1947!!

Sumner Welles (1892-1961).

Under Secretary of State from 1937 to
1943).

Nelson Rockefeller (1898-1979).

Under Secretary of State from 1944
to 1945.

Sumner Wellesa violent, sinister homosexualwas forced to resign in 1943. He had

filled the State Department with his perverts.
Nelson Rockefeller replaced him as Under Secretary of State. Nelson was only 35 at
the time. His burning ambition was to be President. All he needed to do was to have
himself appointed Secretary of State. No big deal since he OWNED the government
anyway. Then his buddy, J. Edgar Hoover, could use his expertise to murder . . . or force
the President and Vice President to resign and presto . . . King Nelson I.

President Truman blocked Rockefeller and saved the

world from disaster!!
Rockefeller was checkmated in his attempt to steal the Presidencybut only for a while.
He would try again using the Vietnam War and the assassination of President Kennedy
in order to amend the Constitution in order to allow the President to appoint his
successor.

The President of the United States is the commanderin-chief of the armed forces. He is the ONLY person
who has the authority to launch nuclear weapons. He is
always followed by a military officer who carries the
launch codes or the "nuclear football" as it is
sometimes called.
For almost 2 years, by appointment only, Nelson
Rockefeller as Vice President was only a heartbeat
from the Presidency and the power to launch World
War III. While Governor of New York, Rockefeller
visited the Pope just 2 months before the
assassination, and he was just itching to wipe Russia
off the map and fulfill Fatima for his "holiness."
Nuclear launch codes.
The U.S. had no Vice President from April 12, 1945, to
Jan, 20, 1949, and the government functioned
smoothly without one. Congress did not even THINK of
changing the order of succession because Nelson was
not ready to be APPOINTED king yet!!
President Harry S. Truman said this about Presidential Succession in 1944 when
President Roosevelt died suddenly and he became President. He had no Vice President
until Jan. 1949:

"By reason of the tragic death of the late President, it now lies within my
power to nominate the person who would be my immediate successor in the
event of my own death or inability to act.
I do not believe that in a democracy this power should rest with the Chief
Executive.
Insofar as possible, the office of the President should be filled by an elective
officer. There is no officer in our system of government, besides the President
and Vice President, who has been elected by all the voters of the country.
The Speaker of the House of Representatives, who is elected in his own
district, is also elected to be the presiding officer of the House by a vote of all
the Representatives of all the people of the country. As a result, I believe that
the Speaker is the official in the Federal Government, whose selection next to
that of the President and Vice President, can be most accurately said to stem
from the people themselves." (Feerick, The 25th Amendment, p. 43).

Rockefeller Amendment was introduced after the

assassination of President Kennedy

John Fitzgerald Kennedy (19171963).

President of the U.S. from Jan. 20,
1961 to Nov. 22, 1963.

The assassination of President Kennedy

took place in Dallas, Texas, on Nov. 22,
1963.

President Kennedy was very popular with the people and he would have been elected
for a second term in 1964. Rockefeller was not going to let ANYTHING stand in his way
to the White House so he gave the order for Kennedy's assassination. This was carried
out in Dallas, Texas, on Nov 22, 1963.
Nelson visited the Pope just 2 months before the assassination. Doubtless to discuss
plans for the elimination of Kennedy and his own appointment as the first KING of the
United States:

"Late in September (1963), unaccompanied by Happy, Rockefeller went to

Rome for an audience with the Pope, a most unusual circumstance and not
entirely free of public relations overtones. But the depressing situation (his
recent divorce and remarriage) was not entirely changed" (Rogers, Rockefeller's
Follies, p. 67).
After the assassination of President Kennedy, his Vice President, Lyndon Johnson,
became President. Johnson ran for President in 1964 and was easily re-elected.

Rockefeller had the Constitution Amended to force his way

into the White House!!
In 1962, Rockefeller divorced his wife of over 30 years and in 1963 he married a much
younger woman. This further alienated the women voters of the country.
Crown prince Nelson realized that even though he owned the country, his serfs did not
want to vote for him. He could never reach the White House through the ballot box and
that left only a military takeover . . . or an APPOINTMENT to the position.

Obviously he ruled out a military takeover at that time because he ordered a change in
the Constitution regarding the succession....This was no problem for Rockefeller. It just
required BRIBING two-third of the Senate and House of Representatives and at least 38
States!!
Senator Birch Bayh from Indiana was used to
introduce the Rockefeller-for-king Amendment. He
was ONLY 36 years old and junior Senators were
supposed to be seen and not heard.
Some of his seniors were old enough to be his
grandfather, like the fossil House Speaker John
McCormack from Massachusetts. When it comes to
Rockefeller money however age makes no
difference. Bayh had a lot of help from the
American Bar Association and the New York Bar
Association.
Senator Birch Bayh (1928
---).
Bayh frequently consulted his boss Nelson on the progress of his Amendment:
"After Professor Hyman had finished his testimony, I asked that a comprehensive
proposal by New York's Governor Nelson Rockefeller be included in the record. Even
though this proposal represented a distinct departure from our consensus, I had some
regrets that it had to be presented in writing, not in person. The Governor would have
been a glamorous witness, bringing to our hearings much of the press attention that I
felt we needed to keep our work before the public eye. Earlier, Ken Keating, as a
senator from New York, had approached me to suggest that his governor testify in
person, as he was eminently qualified to do so since he and his staff had given
long and deep study to the problems of disability and succession" (One
Heartbeat Away, Birch Bayh, p. 73)."
Indeed the Rockefellers were planning on stealing the Presidency for a very long time.
At least since the Standard Oil Co., was incorporated in 1870 and the first stolen
millions began to flow into their coffers.

The 25th Amendment or the Rockefeller Amendment to

the Constitution!!
(The proposed amendment was sent to the states July 6, 1965, by the Eighty-ninth
Congress. It was ratified Feb. 10, 1967).

Section 2
[Vacancy in office of Vice President.]

"Whenever there is a vacancy in the office of the Vice President, the President
shall nominate a Vice President who shall take office upon confirmation by a
majority vote of both Houses of Congress."

The Amendment was not even mentioned in the press!!

The power of the Rockefeller controlled press is most evident in this case. Not one
mention of the Amendment appeared in the New York Times until long after the
Amendment was passed. The same is true for all the other brass check Rockefeller
owned and controlled "newspapers" in the country. The Vietnam War was conveniently
raging at that time, and EVEYBODY was distracted by all the bad news coming from
that country.

President Lyndon Baines Johnson officiates in a White House ceremony witnessing the
ratification of the Twenty-fifth Amendment to the United States Constitution on February
23, 1967. Standing, left to right: Congressman William McCulloch; Senator Birch Bayh;
Senate President pro tempore Carl Hoyden; Vice President Hubert H. Humphrey;
Congressman Emanuel Celler; Speaker of the House John McCormack. Seated:
Lawson Knott, General Services Administrator, and President Johnson.

Rockefeller used the 25th Amendment to appoint himself

Vice President!!
The 1968 Presidential Election.

President Nixon (1913-1994).

President from 1969 to '74.

Vice President Spiro Agnew. (19181996).

Vice President from '69 to '74.

Nixon refused to nominate Rocky as his Vice President and nominated Greek-American
Spiro Agnew instead. He probably knew that having Rockefeller as Vice President was
sighing his own death warrant.
The Vice President was forced to resign in '74 by trumped up charges brought by the
Rockefeller controlled IRS.
The forced resignation of Spiro Agnew left a vacancy for the office of Vice President.
This was the opportunity Rockefeller was waiting for. The Vice Presidency was only a
heartbeat from the Presidency and his appointment was up to President Nixon. Nixon
double-crossed him and appointed Gerald Ford instead. This decision cost President
Nixon his Presidency.

Rockefeller was behind Watergate.

Rockefeller was behind the scandal called Watergate which forced Nixon to resign. His
man in the White House was Secretary of State Henry Kissinger.
Firstly, Nixon's Vice President Spiro Agnew was forced to resign and Nixon
APPOINTED Ford as his Vice President. This was the first use of the recently passed
Rockefeller Amendment.
After the appointment of Ford as Vice President, Nixon was forced to resign over
Watergate and then Ford became President by appointment only....Ford did not LUST
for the Presidency like Rockefeller and he was a victim of the fast moving events to
make Rockefeller President by appointment only.

President Gerald Ford the MIRACLE President!!

President Ford was a miracle President because every time he went out of the White
House someone was shooting at him, but by the grace of God, he survived every
attempt at assassination.

President Gerald Ford (1913-2006).

(President of the U.S. from August 9, 1974, to Jan. 20, 1977).
Rockefeller was sworn in as Vice President Dec. 19, 1974. He was now only a
heartbeat away from his lifelong ambition to be king of the United States.

Nelson Rockefeller was sworn in

as Vice President on Dec. 19,
1974.

Rockefeller in the White House Oval Office

with President Ford and Kissinger.

Rockefeller was indeed only one heartbeat away from the Presidency when he served
as Vice President under President Ford.

President Ford had a TARGET on his back after making

Rockefeller Vice President!!
To the shock of his family and the nation, two women (undercover Rockefeller controlled
CIA agents) attempted to kill President Ford in separate incidents in September of 1975.
On September 5, as Ford greeted well-wishers outside the Senator Hotel in

Sacramento, California, Lynette "Squeaky" Fromme, aged twenty-six, a follower of

mass-murderer Charles Manson, leveled a Colt .45 at Ford and squeezed the trigger at
point blank range. The gun misfired and Fromme was wrestled to the ground before she
could pull off a second shot.
Two weeks later in San Francisco, on September 22, Sara Jane Moore, aged forty-five,
a one-time FBI informer, fired a .38 revolver at Ford. The shot missed Ford by a few feet
because a bystander had spoiled her aim. Both women were convicted under the 1965
law making attempted assassination of the President a federal offense punishable by
life imprisonment.

Activity following the attempt on

President Ford's life by Lynette
"Squeaky" Fromme, in Sacramento,
California, September 5, 1975.

President Ford winces at the sound of the

gun fired by Sara Jane Moore during the
assassination attempt in San Francisco,
California, September 22, 1975.

Our Great God overruled these 2 wicked attempts to murder the President so Nelson
Rockefeller launched his last deadly attack. This was the swine flu scare of 1976.

Courtesy of the Gerald R. Ford Library.

Courtesy of the Gerald R. Ford Library.

Assault on the President of the United States with a DEADLY weapon courtesy of the
Rockefeller Medical Inquisition. He was given the POISONED needle in front of a
nationwide TV audience on Oct 11, 1976.

Rockefeller was "praying" that he would die or become incapacitated and then he would
be President for life. Thank God that He overruled this deadly plot by Rome and
Rockefeller against the people and the Constitution:
"Mere coincidence can be damaging. This occurred in the ill-fated swine flu vaccination
campaign mounted in 1976 to protect Americans against what was believed to be an
extremely dangerous strain of influenza. Three elderly people, all heart patients,
dropped dead on one day (Oct. 11) after getting shots at a Pittsburgh clinic. Experts
concluded the vaccine was not responsible, but it took President Gerald Ford and

his family getting swine flu shots on national TV to restore confidence in the
program -- and even then only for a while." (Washington Post, Saturday,
December 14, 2002; p. A01)

Editor's Notes
President Johnson B. Johnson sent to Congress Jan. 28, 1965, a special message
requesting that Congress amend the Constitution (a) to provide for the execution of the
President's duties during Presidential disability and for the filling of a vacancy in the
Office of Vice President and (b) to reform the electoral system.
All but 3 states Georgia, North Dakota, and South Carolina passed the 25th
Amendment.
Arkansas

Alaska

Arizona,

Alabama

California

Colorado

Connectic
ut

Delaware

Florida

Hawaii

Indiana

Idaho

Iowa

Illinois

Kansas

Kentucky

Louisiana

Minnesota

Maryland

Mississippi

Missouri

Maine

Massachusetts

Michigan

Montana

New
Hampshire

New
Mexico

New York New Jersey

Nebraska

Nevada

North
Carolina

Oklahoma

Oregon

Ohio

Pennsylvania

Rhode
Island

South
Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Wyoming

Washington

West
Virginia

Wisconsin

Ratification was completed on February 10, 1967.

The ONLY Rockefeller to reach the White House is

President Bill Clinton the son of Winthrop Rockefeller.
Thank God that the ONLY Rockefeller to reach the White so far is William Jefferson
Clinton the son of Winthrop Rockefeller!!
Imagine the financial clout that it takes to have a Constitutional Amendment passed. It
requires total control of the Senate, House of Representatives and most all of the 50
states. During the Senate hearing for the appointment of Nelson in 1974, various
attempts were make to estimate the Rockefeller billions. None even came close. One
figure that was mentioned was 70 billion dollars. Newsweek (Rockefeller owned) says
that the fortune was "beyond calculation."

Vital links
Rockefeller dies in the saddle
The Rockefeller File by Gary Allen
Watergate.com
Watergate.info

References
Allen, Gary. The Rockefeller File. '76 Press, Seal Beach, CA, 1976.
Bayh, Birch. One Heartbeat Away. The Bobbs-Merrill Co., Indianapolis & New York,
1968.
Feerick, John D. From Failing Hands: The Story of Presidential Succession. Fordham
University Press, New York, 1965.
Feerick, John, D.The Twenty-Fifth Amendment, Its Complete History and Earliest
Application. Fordham University Press, New York, 1976.
Josephson, Emanuel. The Federal Reserve Conspiracy & Rockefellers. Chedney Press,
New York, 1968.

Kramer, Michael, & Roberts, Sam. I Never Wanted to be Vice President of Anything, An
Investigative Biography of Nelson Rockefeller. Basic Books, New York, 1976.
Rogers, William. Rockefeller's Follies: An Unauthorized View of Nelson A. Rockefeller.
Stein & Day, New York, 1966.
Sobel, Lester (Editor). Presidential Succession, Ford, Rockefeller & the 25th
Amendment. Facts on File, New York, 1975.
http://www.reformation.org/rockefeller-for-president.html

From Russia with Love GRAND Duke Alexander warns

Americans about the Rockefeller Empire!!
http://www.reformation.org/from-russia-with-love.html
Last updated on Feb. 6, 2003
Grand Duke Alexander said this about his visit to the U.S. during a visit in 1913:
"As a matter of fact, there was one startling change which seemed to have escaped the
attention of the native observers. The building of the Panama Canal and the stupendous
development of the Pacific Coast had created a new form of American pioneering; their
industries had grown to where a foreign outlet had become a sheer necessity. Their
financiers who used to borrow money in London, Paris, Amsterdam had suddenly found
themselves in the position of creditors. The rustic republic of Jefferson was rapidly
giving way to the empire of Rockefellers, but the average man-in-the-street had not
yet entirely caught up with this new order of things, and the bulk of the nation was still
thinking in terms of the nineteenth century (Once a Grand Duke, p. 242)."
Such is the extreme secrecy of the Rockefeller Syndicate, that almost a century later,
most Americans are still not aware that their country has been hijacked by Standard
Oil....The Grand Duke did not know or could not tell that his own country was also
hijacked by the Rock Mob!!

Grand Duke Alexander was

Grand Duke Alexander during his exile in

commander-in-chief of the Russian

Air Force during WW I.

New York in 1932.

Grand Duke Alexander Mikhailovitch (1866-1934 ).

Grand Duke Alexander was born on April 1, 1866 in Tiflis (now Tbilisi), and died in 1934
in the United States. He loved everything American and as a youth he longed to run
away to the United States. He despised the empty rituals of the Greek Orthodox
"church" and wanted to remake his country in the image of the U.S.A. He visited this
country in 1893 and again in 1913. He moved to the U.S. in 1928 and began a career
as an author of several books on Russian history.

Emperor Alexander II of Russia

(1818-1881).

Russian ship Osliaba arrived in Alexandria,

Virginia, in 1863.

Grand Duke Alexander was the nephew of Emperor Alexander II. This was the Emperor
that freed the serfs in 1861. He sent the Russian navy to New York, Virginia and San
Francisco in 1863 and their presence was a warning to France and Great Britain to stay
out of the conflict. In 1867, he sold Alaska to the U.S. for the measly sum of $7.2 million
dollars. For freeing the serfs and saving the American Union, Emperor Alexander was
killed by a Jesuit assassin in 1881.

Grand Duke Alexander and

his wife Xenia during the
war.

Czar Nicholas II (1868-1918)

was the last Russian
Emperor.

Grand Duchess Xenia,

sister of the Emperor
and wife of Grand Duke
Alexander.

In 1918, Czar Nicholas II and his entire family were assassinated by Jesuits disguised
as Soviets or Bolsheviks. Even though he was related to most of the crowned heads of
Europe, none of them came to his aid. One of these Rockefeller Bolsheviks was named
Joseph Stalin who later became dictator of Russia.

The Dowager-Empress Marie of Russia, in exile in Denmark in 1924.

Empress Marie was the widow of Emperor Alexander III and mother-in-law of Duke
Alexander. Emperor Nicholas was sent to Siberia and the rest of the Romanoffs were

held captive by the "Soviets" at Sebastopol. They confiscated Empress Marie's precious
Bible because it was a counter-revolutionary book.

The Bible is an anti-revolutionary book according to the

Bolsheviks.
"They started back for Sebastopol at six in the afternoon, leaving the house in a state of
complete destruction and carrying away my personal correspondence and the Bible
belonging to my mother-in-law. The old Empress begged them not to deprive her of this
precious souvenir of her youth, proposing her jewels in exchange."We are not thieves,"

"This is an antirevolutionary book, and an old woman like you should

know better than poison her brains with such trash." Ten years
said the chief, completely disgusted at the failure of the raid.

later, while in Copenhagen, my mother-in-received a package containing her Bible: a

Danish diplomat visiting Moscow bought it from a dealer in rare books. She died holding
it in her hands (Once a Grand Duke, p. 303)."
Since the Glorious Reformation, the Czars of Russia have tried to enlighten their people
by making the Word of God available to all their subjects. Their main opposition came
from the Greek Orthodox "church" founded by Emperor Constantine.

Comrade Khrushchev meets the Rockefellers

Khrushchev meets his Rockefeller master!!

Gov. Nelson Rockefeller visits Khrushchev's Quarters at the Waldorf Astoria Tower; and
cordially and comradely greets him. False headlines say that they met "for the first time"
and "as total strangers". Khrushchev boasts that he receives secret codes, money and
all "secret" reports from Rockefeller dominated CIA Quislings.

David Rockefeller accepts Khrushchev's urgent invitation to visit him at the Kremlin.
David Rockefeller held a conference in Leningrad of his Bilderberger "Dartmouth group"
to discuss politics and stimulate Communist Russo-Chinese business for the branch of
his Chase Manhattan Bank he had opened six months earlier, in Hong Kong, for the
specific purpose of trading with the Communists. At the end of the two weeks
conference, in mid August, 1964, Khrushchev phoned Rockefeller and urgently
requested him to come to Moscow and discuss his decisions at the Kremlin. Rockefeller
agreed to do so. He was entertained, with his daughter, Neva, at the Kremlin. But,
shortly thereafter, Khrushchev was "fired" because his controversy with Mao Tse Tung
interfered with the Soviet-Communist China trade from which Rockefellers sought to
profit.

Rockefeller HATED Unions!!

Rockefeller HATED Unions - especially the American UNION and the Soviet
Union....Unions prevent war and keep the peace. The more countries you have the
more wars you are going to have. The Rockefeller Syndicate HATES peace because
they cannot make money by supplying arms to both sides. The Russian Premier of the
"workers paradise" probably didn't know that Rockefeller Junior had about 40 striking
mine workers killed in Colorado. Most of those killed were poor Roman Catholic
emigrants from Italy and Ireland.
Rockefeller massacred striking mine workers in Colorado.

Editor's Note
The Imperialists have always tried to promote conflict between Russia and America in
order to instigate conflicts between the two great nations. This was the object of World

War I and II -- to get America and Russia into a suicidal Cold War and reign over the
ruins of both.

Links
A brief biography of Duke Alexander.

References
Alexander, Grand Duke of Russia, Once a Grand Duke, Farrar & Rinehart, Inc., New
York, 1932.
Duke Alexander wrote many books. You can peruse them at......www.abebooks.com
Josephson, Emanuel M., The "Federal" Reserve Conspiracy and Rockefeller: Their
Gold Corner, Chedney Press, New York, 1968.
Sinclair, Upton, King Coal, Bantam Books, New York, 1917. (This book is about the
horrible massacre of striking mine workers in Colorado called The Ludlow Massacre).

Rockefeller Bribery!!
The entire Rockefeller billions were made by BRIBERY, KICKBACKS,
EXTORTION and BLACKMAIL. Here is a small sample of Rockefeller in action
from The History of the Standard Oil Co. by Ida Tarbell. At the time of its
publication in 1905, Rockefeller could afford to buy almost every lawyer in
the country and sue Miss Tarbell . . . but he feared exposure of his crimes
more than anything else.
He secretly bought up ALL the publishing houses and newspapers in the
country to prevent anybody else exposing his crime syndicate. Even today,
the lying press gets all its propaganda from the Associated Press
headquarters at Rockefeller Center in Rockefeller Land -- alias New York City:

"The moral effect of this system on employees is even a more serious feature of the
case than the injustice it works to competition. For a "consideration" railroad freight
clerks give confidential information concerning freight going through their hands.It
would certainly be quite as legitimate for post-office clerks to allow Mr. Rockefeller
to read the private letters of his competitors, as it is that the clerks of a railroad give
him data concerning their shipments. Everybody through whose hands such
information passes is contaminated by the knowledge. (History of the Standard
Oil Co., pp 56-59).

The Bible and Bribery

The Rockefeller Syndicate always likes to appear "Christian" and give to
"Christian" causes. Here is a brief study of BRIBERY from the Bible that the
Rockefellers like to carry around:

The most infamous case of bribery in the history of

the universe!!

Mount of Olives overlooking Jerusalem was the site of the death and
Resurrection of Christ.
The false religious leaders bribed the soldiers to say that the disciples stole
the Lord's body and that the Resurrection was a fake!!

"Now when they were going, behold, some of the watch (Roman
soldiers) came into the city, and showed unto the chief priests all
the things that were done. And when they were assembled with the
elders. and had taken counsel, they gave large money unto the
soldiers, Saying, Say ye, His disciples came by night, and stole him
away while we slept. And if this come to the governor's ears, we will
persuade him (by bribes too), and secure you. So they took the
money, and did as they were taught: and this saying is commonly
reported among the Jews unto this day (Matthew 28:11-15)."
These murderers of God were very familiar with "money talks" just like today.
There are many of Rome's soldiers like Rockefeller giving and taking bribes
today. Everybody who gives or takes a bribe has the same spirit of Satan
controlling them that these murderers had. Unless they repent they will
share Satan's doom in the lake of fire and brimstone:
Moses said

"And thou shalt take no gift: for

the gift blindeth the wise, and
perverteth the words of the
righteous (Exodus 23:8)."

"For the Lord you God is God of

gods, and Lord of lords, a great
God, a mighty, and a terrible,
which regardeth not persons,
nor taketh reward
(Deuteronomy 10"17)."

Job said:

"For the congregation of hypocrites shall be desolate, and fire shall

consume the tabernacles of bribery, They conceive mischief, and
bring forth vanity and their belly prepareth deceit (Job 15:35)."
Samuel the Ruler or Judge of Israel asked the people this question:

"Behold, here I am: witness against me before the Lord, and before
his anointed: whose ox have I taken, or whose ass have I taken? of
whom have I defrauded or whom have I oppressed or of whose hand
have I received any bribe to blind mine eyes therewith?(I Samuel
12:3)."
King David said

"Gather not my soul with sinners, nor my life with bloody men; In
whose hands is mischief, and their right hand is full of bribes (Psalm
26:10)."
King Solomon said:

"A wicked man taketh a gift out of the bosom to pervert the ways of
judgment (Proverbs 17:23)."
Isaiah the Prophet said:

"Woe unto them that are

mighty to drink wine, and men
of strength to mingle strong
drink: Which justify the wicked
for reward, and take away the
righteousness of the righteous
from him (Isaiah 5:22-23)."

"He that walketh righteously,

and speaketh uprightly; he that
despiseth the gain of
oppressions, that shaketh his
hands from the holding of
bribes, that stoppeth his ears
from hearing of blood, and
shutteth his eyes from seeing
evil (Isaiah 33:15)."

The prophet Amos said:

"For I know your manifold transgressions and your mighty sins: they
afflict the just, they take a bribe, and they turn aside the poor in the
gate from their right (Amos 5:12)."

This particular Roman governor named Felix expected a bribe from the
Apostle Paul:
"And after certain days, when Felix came with his wife Drusila, which was a
Jewess, he sent for Paul, and heard him concerning the faith in Christ. And as
he reasoned of righteousness, temperance, and judgment to come, Felix
trembled, and answered, Go they way for this time; when I have a
convenient season, I will call for thee. He hoped also that money should be
given him of Paul, that he might loose him: wherefore he sent for him often,
and communed with him (Acts 24: 24-27)."
No wonder the Rockefeller controlled "educational" establishment does not
want the Bible in any of the schools -- because it condemns their activities on
almost every page.

Rockefeller becomes King of bribery by buying U.S.

government!!
In 1911, after the Supreme Court ordered the breakup of the Rockefeller
Trust as a MENACE to the Republic, As revenge, Rockefeller decided to "BUY"
the U.S. government. This made him the KING of BRIBERY!!

Bribery is when one team in a football game BUYS the referee before
the game in order to overlook the fouls of its players!!

King of BRIBERY has a Museum in Jerusalem!!

Jerusalem was founded by King David as the headquarters of the nation of
Israel and was called the city of the Great King. It was the site of the
Resurrection of Christ and was the headquarters of the true church until the
time of Pope Constantine. Now the king of bribes has a museum there!!

Rockefeller Museum in Jerusalem. A monument to the king of BRIBERY!!

Editor's Note
Alcohol and bribery always go together (Isaiah 5:23-23). The pious hypocrite
Rockefeller was a member of the Anti-Saloon League and actually donated
money to the prohibition cause. He HATED the booze businnes because he
did not control it!!

When prohibition was enacted in 1920, he bought up all the

distilleries and wineries at a pittance. Then when prohibition was
repealed by Rockefeller stooge Roosevelt in 1933, the booze money began to
flow into the Rockefeller coffers. That is why the Rockefeller owned
newspapers are constantly telling people that alcohol is GOOD for you. They
know that you will soon be visiting the Rockefeller controlled "doctors" and
be using Rockefeller "drugs" to cure you. That is why "doctors" in the U.S. are
not trying to stop the alcohol/poison business which is the main cause of
illness and death in the country.

FLEECED by Dick Morris & Eileen McGann. And the same

FLEECERS now have the House and Senate in 2009.

CHAPTER 3
DETAILS ON SELLING U.S. PORTS TO THE UNITED ARAB
EMIRATES AND 20% OF NASDAQ A CLEAR ACT OF
TREASON

Sheikh Abdullah bin Zayed Al Nahyan, United Arab Emirates

Minister of Foreign Affairs, Rings the NASDAQ Closing Bell

http://www.nasdaq.com/reference/200809/market_close_0926
08.stm
Sheikh Abdullah bin Zayed Al Nahyan, United Arab Emirates Minister of Foreign
Affairs, presides over the NASDAQ Closing Bell in honor of U.N. General
Assembly in New York. Joining Sheikh Abdullah bin Zayed Al Nahyan is NASDAQ
OMX President Magnus Bocker.
About NASDAQ OMX in UAE:
NASDAQ and Borse Dubai announced in September 2007 that they entered into an
agreement whereby NASDAQ would become a strategic shareholder with a 33.3%
stake in Dubai's international financial exchange. NASDAQ provides DIFX with the
NASDAQ brand, OMX technology and marketing resources. This investment is
designed to accelerate DIFX's growth in the region and create a world-class electronic
exchange and technology platform in one of the world's fastest growing markets.
NASDAQ OMX companies can now tap into the Middle Eastern capital markets and
Dual List on DIFX, as part of our Global Listing initiative.
About NASDAQ OMX:
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers
trading, exchange technology and public company services across six continents, and
with over 3,900 companies, it is number one in worldwide listings among major markets.
NASDAQ OMX offers multiple capital raising solutions to companies around the globe,
including its U.S. listings market; the OMX Nordic Exchange, including First North; and
the 144A PORTAL Market. The company offers trading across multiple asset classes
including equities, derivatives, debt, commodities, structured products and ETFs.
NASDAQ OMX technology supports the operations of over 60 exchanges, clearing
organizations and central securities depositories in more than 50 countries. OMX Nordic
Exchange is not a legal entity but describes the common offering from NASDAQ OMX
exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For
more information about NASDAQ OMX, visit http://www.nasdaqomx.com/.

DIFX is Rebranded 'NASDAQ Dubai'; NASDAQ OMX

Group to List Its Shares On Region's International
Exchange
NASDAQ Opening Bell Ceremony Will be Broadcast Live From DIFC On
November 20
DUBAI, United Arab Emirates, Nov 18, 2008 (GlobeNewswire via COMTEX News Network) -The Dubai International Financial Exchange (DIFX) has rebranded its market as NASDAQ
Dubai, effective today. NASDAQ OMX Group (Nasdaq:NDAQ), the world's largest exchange
company, also announced today it will list its shares on NASDAQ Dubai on November 20th.
Both moves reflect the growing links between NASDAQ OMX Group and NASDAQ Dubai, as
well as the growth of Dubai as an international financial centre.
Soud Ba'alawy, Chairman of NASDAQ Dubai and a Director of NASDAQ OMX Group, said,
"As the international stock exchange serving this region, NASDAQ Dubai acts as a capital
markets gateway for investors all over the world, including and especially in this region.
NASDAQ Dubai's growing ties to NASDAQ OMX exchanges in the U.S. and Europe in listings,
marketing, technology, and management expertise will support its continuing expansion."
NASDAQ Dubai has attracted listings from around the world and from within its own region and
built a world class exchange infrastructure.
Jeff Singer, Chief Executive of NASDAQ Dubai, said, "NASDAQ Dubai is taking active steps to
further develop its market including extending its opening hours, opening on Sundays, and
allowing listings in UAE Dirhams. We will continue to develop new asset classes as well as seek
further primary and secondary equity listings."
Bob Greifeld, Chief Executive of NASDAQ OMX Group and Vice Chairman of NASDAQ
Dubai, said, "NASDAQ Dubai provides a first-class venue through which NASDAQ OMX listed
companies can reach new investors in the Gulf and the Middle East. We've attracted 29
companies to our first Middle East investor conference here in Dubai and there is clear and
tangible interest in this market. At the same time, we can provide local investors with
opportunities to invest in innovative, growth-oriented companies." Greifeld added, "To facilitate
dual listings on NASDAQ Dubai, we have created a streamlined listing process for companies
looking to have a secondary listing here."
NASDAQ OMX acquired a one-third stake in NASDAQ Dubai in February 2008. The other
two-thirds is owned by Borse Dubai.
NASDAQ OMX Group will host its First Middle East Investor Conference in Dubai on
November 20 to provide its issuers with access to investors in the region. The conference will be
held jointly with NASDAQ Dubai. Also on November 20, The NASDAQ Stock Market will hold
its Opening Bell Ceremony at the Dubai International Financial Centre (DIFC), where NASDAQ

Dubai is based. The ceremony, one of the most televised events in the world, will be broadcast
live in Times Square in New York and around the globe.
For registration and information about the investor conference please visit
http://dubai.nasdaqinvestorprogram.com.
NASDAQ Dubai will make a unique addition to the international equity and index derivative
landscape by launching a UAE derivatives market on November 19. Members will be able to
trade single stock futures on UAE-listed equities and a future on the FTSE DIFX UAE 20 equity
index calculated by FTSE International. Derivatives trading can provide investors with price
insurance and create liquidity and stability in the underlying shares.
The exchange opened with the name DIFX in September 2005. It is based in the Dubai
International Financial Centre (DIFC).
About NASDAQ Dubai
NASDAQ Dubai is the international financial exchange serving the region between Western
Europe and East Asia. It welcomes regional as well as global issuers that seek regional and
international investment. The exchange currently lists shares, structured products, Sukuk (Islamic
bonds) and conventional bonds and is planning to list equity derivatives in 2008.
The majority shareholder of NASDAQ Dubai is Borse Dubai with a two-thirds stake. NASDAQ
OMX Group owns one third of the shares. The regulator of NASDAQ Dubai is the Dubai
Financial Services Authority (DFSA). NASDAQ Dubai is located in the Dubai International
Financial Centre (DIFC). For more information, visit www.nasdaqdubai.com
About NASDAQ OMX Group
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading,
exchange technology and public company services across six continents, with over 3,900 listed
companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around
the globe, including its U.S. listings market; the OMX Nordic Exchange, including First North;
and the 144A PORTAL Market. The company offers trading across multiple asset classes
including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ
OMX Group technology supports the operations of over 70 exchanges, clearing organizations
and central securities depositories in more than 50 countries. OMX Nordic Exchange is not a
legal entity but describes the common offering from NASDAQ OMX Group exchanges in
Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information
about NASDAQ OMX, visit http://www.nasdaqomx.com.

http://ir.nasdaqomx.com/releasedetail.cfm?
ReleaseID=348093

Arabs to Buy 20 Percent of Nasdaq, Politicians Question Deal

Friday , September 21, 2007

http://www.foxnews.com/story/0,2933,297541,00.html
Nasdaq Stock Market Inc. struck a complex deal to sell a 20 percent stake to the stateowned Borse Dubai in return for control of Sweden's leading stock market, but the plan
met with some questions from U.S. politicians concerned it would raise security issues.
The sale of the Nasdaq stake is part of a flurry of cross-border handshaking unveiled
Thursday that holds potential to remake the already shifting landscape of global stock
exchanges.
If enacted, the Nasdaq deal would let the exchange meet a long-held goal of planting a
flag overseas as its larger rival, the New York Stock Exchange, did this year with the
acquisition of Paris-based Euronext.
Nasdaq's plan would allow it to sidestep a further bidding war with cash-rich Borse
Dubai for Sweden's OMX while Dubai gains footholds in both Nasdaq and the London
Stock Exchange. Nasdaq Stock Market Inc. would pay Dubai 11.4 billion kronor ($1.72
billion) in cash. Borse Dubai would get a 19.99 percent stake in Nasdaq and two of 16
board seats in combined Nasdaq-OMX. Borse Dubai's voting rights would be limited to
5 percent, however, perhaps to help assuage concerns that a Middle Eastern
government would for the first time own a sizable chunk of a U.S. exchange.
Nasdaq plans to use proceeds from the deal to pay down debt and repurchase stock.
But a potential complication arose only hours later when a group from Qatar said it
become the largest stakeholder in the London exchange. Qatar has shown interest in
OMX and could perhaps try to spoil Borse Dubai's bid for that exchange.
If Qatar doesn't try to disrupt the deal, two state-owned investment vehicles could in
total control nearly half of the 300-year-old LSE, Europe's largest exchange.
The transactions are subject to approval by shareholders and regulators in Europe and
the United States. Nasdaq and Borse Dubai said the agreements had unanimous
support on both boards.
Political scrutiny could further complicate the desires of the acquisitive exchanges.
U.S. Sen. Charles E. Schumer, D-N.Y., chairman of the Joint Economic Committee and
a senior member of the Senate Banking Committee, expressed doubts about the deal,
saying "at this early stage this deal gives me pause." Schumer sent a letter to the
Treasury Department seeking a review of the deal.

However, President Bush told reporters at a wide-ranging news conference in

Washington that he was concerned protectionism would hamper economic growth.
"We're going to take a good look at it, as to whether or not it has any national security
implications involved in the transaction. And I'm comfortable with the process to go
forward," Bush said.
House Speaker Nancy Pelosi, D-Calif., said while she would want to learn more about
the deal, the Nasdaq plan didn't appear to raise the same concerns as an effort 18
months ago by a Dubai state-owned company to purchase operating rights at six U.S.
ports.
That proposal touched off a firestorm of protest in Congress, which ultimately squelched
the deal. In the aftermath of the controversy, Washington passed a law requiring that
investments by foreign state-owned companies undergo an additional 45-day
investigation by government officials, on top of a standard 30-day review.
Legal experts said the transaction will face scrutiny by U.S. government agencies and
on Capitol Hill, though it's too early to tell whether steps will be taken to scuttle the deal.
Ronald Meltzer, an attorney at law firm WilmerHale, said political concerns about the
Dubai firm's investment are likely due as much to the company's Middle East location as
any innate security concerns about the deal.
But Nasdaq Chief Executive Bob Greifeld said the initial reception to its plans had been
a warm one.
"We've had some outreach with politicians today and the response has been very
favorable," he said on a conference call.
Nasdaq said it would submit the deal to the federal Committee on Foreign Investment,
or CFIUS, which reviews acquisitions of American companies by foreign entities for
security concerns.
Greifeld told reporters in Stockholm he believed the U.S. Securities and Exchange
Commission would be "positive" toward the agreement.
"It's a good transaction for the U.S. capital markets system and it will make sure that
Nasdaq is a key player in the global consolidation," he said. "It's our job to communicate
that to legislators and regulators and clearly."
But beyond any political headwind in the United States, the latest round of global
dealmaking only furthers a rapid consolidation among the world's exchanges as the rise
of electronic trading threatens to further squeeze profit margins.

The multilayered Nasdaq plan would allow it to buy OMX from Borse Dubai and, in turn,
sell the bulk of its holdings in the LSE to Borse Dubai. Nasdaq said it would sell the LSE
stake after failing to take over the exchange. Still wanting a footprint overseas, Nasdaq
turned its focus to OMX, which operates stock and derivatives exchanges in Sweden,
Denmark, Iceland, Finland and in the Baltic countries of Estonia, Latvia and Lithuania.
Analysts cautioned that the Qatar Investment Authority, which bought 20 percent of the
London exchange, could try to disrupt the bid from Dubai, a city-state within the United
Arab Emirates.
Dubai has been an aggressive suitor of businesses and tourists as it seeks to diversify
its economy beyond its oil wealth, which has helped bankroll a huge boom in business
and tourism.
Cubillas Ding, a senior analyst at Celent in London, said Borse Dubai could harbor
ambitions of setting up an entity that would eventually hold a group of global exchanges
akin to the marriage that combined the NYSE with the exchanges of Euronext.
"It's hard for me to see what really, strategically, they're trying to do," he said. "They
have the money but whether the thinking behind it is clear I'm not so sure. The
exchange landscape is going through quite an uncertain period. They're coming under
price pressures."
The LSE, which has fought off a multitude of bids in the past few years, had no
immediate comment on the Nasdaq-Borse Dubai deal, but said it welcomed the
purchase of a stake by the government of Qatar.

SUNSTARS
U.S.
PORT
SECURITY
REPORT
Commentary On Port Security Breach
With United Arab Emirates DP Deal

This port deal creates a patsy for the coming nuclear attack on America.

Commentary by
Dr. Michael Sunstar, D.D.
Copyright 2006

SUNSTARS COMMENTARY ON PORT SECURITY

I wonder how the founding fathers of America, who fought against

Britain for their rights and freedoms would feel about future leaders of
America selling our ports to the British? Are we supposed to take comfort
in the TRAITOR TRADERS of America who did business with Britain to the
point of selling our port management to a London based company?
Should we just sell ourselves to one further compromise and say, Oh, well
if we sold our ports out to Britain, then whats wrong with selling our
ports to the UNITED ARAB EMIRATES? After all, hasnt America been up
for sale to every foreign owned corporation around the world? Dont
Armenians own Glendale, California? Dont the Asians own Downtown Los
Angeles high-rises and 80 % of Los Angeles? When we study who really
owns what in America, this next compromise of selling out our American
ports says everything about the attitude of business relations among the
wealthy and the powerful, who will sell anything to anyone at a price, not
caring about the consequences of bad decision making.

An argument stated by the President was, The UAE is our ally in the war
on terror! Will they be our ally tomorrow? The more control you give any
corporation the more harm they can do to you. Should we trust foreign
owned companies on American soil? Hopefully, my lists of layoffs from
Globalized companies should tell the average American worker, in a
reasonable way, that doing business with foreign companies and
governments is bad business for any economy and ruins nations.

What about Globalization? Havent we already sold our companies to

China, Russia, France, Britian and everybody else, except Americans? This
is the logic which seeks to gain American understanding of selling ports to
the UAE.

Have we forgotten the phrases:

MADE IN CHINA
MADE IN TAIWAN
MADE IN JAPAN

MADE IN PAKISTAN
MADE IN BRITAIN
MADE IN ITALY
MADE IN INDIA

When we study SECURITY COMPANIES throughout America, what

percentage of the security personnel are from another country? What
percentage of Security Personnel in America cant speak English or dont
have American citizenship yet?

I, and a lot of other Americans were disappointed with Bushs

approval of handing our Port Management over to the United Arab
Emirates and the outrage that most Americans suffered together
represents a last straw for such an unjust social compromise.

Why this outrage, after we have sold America to foreign investors to

begin with?

Democrats, Republicans, and Americans everywhere have united

against Bushs approval to hand port management over to the United Arab
Emirates. Homeland Security was against it; the Coast Guard brought
documentation to bring condemnation of the decision; both parties are
united that this is a bad idea, although the Democrats should shut their
mouths since they have been selling America out to the United Nations
since they planned their one world orgy many years ago through their
precious NYSE! Democrats dont seem to be good for anything except
selling America out! Whats shocking is that the President of the
Republicans, George Bush actually approved this move and should we take
comfort that the Coast Guard and Customs can monitor 13,000 cargo bins
a day under the management of a UAE sponsored company? Why should
the UAE be offended if we turn down the deal? We dont need their ports
anymore than they need ours. This decision is bad for everyone and its
just one step closer towards Pauls warning in Thessalonians, While
people are saying, PEACE AND SECURITY, destruction will come
suddenly. This is just an invitation for fulfilling this verse.

Standing with Joseph Lieberman, loser Democrat to Bush, was a military

general who stated, I am so disappointed with this anti-Arab, anti-Muslim
attitude in Washington that this deal didnt go through. I am certainly
glad he wasnt in charge of this deal and I am certainly grateful as an
American who believes in the safety and security of all nations, that the
Republican party stepped up and caused this deal to vanish. We should
be thankful that this deal was prevented as Americans united together to
say, NO! to this bad idea.

This whole deal showed us how America does business with other
countries and how other countries do business with us. It shows us that
the whole MASONIC PEACE PROCESS was signed because of business
arrangements made with enemy states, enemies who will do whatever it
takes to gain power and get an advantage to destroy Israel and destroy
America. This is quite a circus but we must not forget that it was the
Rockefeller oil empire that started this mess and Revelation 17 describes
the prostitution of not just Israel within the context of Ezekiel 16 and
Ezekiel 23, but of ALL NATIONS who have drunk the maddening wine of
Jerusalems adulteries.

Sometimes, the policy of making peace with an enemy through material

gain has worked, but in the case of shaking hands with Islamic countries
who hate America, this time our leaders blew it REAL BAD!

http://judicial-inc.biz/arab_port_deal.htm
Chertoff, And
Fellow Neocons, Are Behind Arab Port Deal
Peninsular and Oriental Steam Navigation Co

A 200 year-old British Company Is Sold to Arabs

The Arab Company Who Bought The British Company

It Manages Ports In Dubai

Dubai Will Control These Ports

Dubai Is A Key Mossad Center In The Mideast

What Is Going On?

A British company, Peninsular and Oriental
Steam Navigation Co., who runs major

commercial operations at shipping ports in

N.Y., Baltimore, N. J., Miami, and New
Orleans has been sold to a UAE company.
The UAE Company, Dubai Port World, is
state-owned, and now inherits their
businesses.

Dubai
Dubai is consider the
'Arabian Tel Aviv'.
Israel's distinct influence can
be seen in it's drug trade,
diamond exchange, gold
exchange, commodity center,
prostitution, etc.
Donald Trump is involved in
Dubai, and is pushing for
casinos.

Who Is involved
Lord Sterling of Plaistow, CEO of Peninsular and
Oriental Steam Navigation Co., consummated the
swindle, which will reward his investors with $7
billion.

Head Of Homeland Security

Michael Chertoff , who is a dual-citizen
Israeli/American, ok's the deal. Customers, such as
Zim Shipping of Israel, are stockholders.

http://www.globes.co.il/serveen/globes/DocView.asp?did=1000065318&fid=1725

Dubai Ports World uses Zim connection in US deal

It's the largest shipping company in Israel. And the president of Zim is very close to our company and
supports us

http://archive.globes.co.il/ENGLISH/index.asp?ID=1000065318

Bob Dole
Dole, the 85 yr old ex-speaker, was a lobbyist for Dubai
in this deal.

http://rawstory.com/news/2005/Former_Senate_chief_Dole_hired_to_0222.html

Former Senate chief Dole hired to lobby for

Dubai port deal
CNN reported on air Wednesday that former Senate Majority Leader Bob Dole (R-KS) has been
hired by Dubai Ports World to lobby for the approval of a deal that would give the company
control of several major U.S. ports, RAW STORY has learned.
CNN's Andrea Koppel reports: "The Dubai-based company at the center of a controversy over
the management of six U.S. seaports has hired former Senate Majority Leader Bob Dole to lobby
on its behalf against bipartisan criticism of the deal, a Dole aide said Wednesday.
"The 1996 Republican presidential candidate was "engaged" by Dubai Ports World shortly after
lawmakers on both sides of the aisle began expressing their strong opposition to the deal, said
Mike Galloway, an aide to the retired senator.
"He is considered a GOP elder statesman, and his wife, Elizabeth, now represents North Carolina
in the Senate.
"Dole is a special counsel in the Washington office of the law firm Alston & Bird. DP World
hired the firm in 2005 to help shepherd its purchase of the British-based firm Peninsular and
Oriental, which currently manages the U.S. ports, Galloway said.
Correction: The first edition of this story incorrectly identified the CNN reporter who broke the
story. The story was reported by Andrea Koppel, not Andrea Mitchell.

Jewish Senators
Senators Schumer, Boxer, Feinstein feign
opposition.

What Is The Scheme?

The core of the deal is a
stock swindle. A group of
stockholders inflated the
stock price 300%, then sold
it to the citizens of the UAE
for $6.8 billion. Basically
all the Arabs get are Port
Service Contracts, and
some marginal loading
equipment
P&O the British company,
that has been running six
U.S. ports, is now a stateowned business in the
United Arab Emirates.
P & O's stock price

Actual Value
P & O's profit from their port
operation was $ 153 million
pounds. PE's run between 5 and 15,
so Dubai should have paid $ 765
million to $ 2.2 billion.
Click for PDF

Why An Arab Country?

Port managers are a dime a dozen.
You have 10 in the US, and there
are others in Japan, China,
Australia, etc.
These are political contracts worth
a fortune, and are the reason
$60,000 a year politicians have fat
Swiss bank accounts.

http://www.merseydocks.co.uk/index2.htm
On 22nd September, 2005, the Port of Liverpool changed ownership when its
parent company, the Mersey Docks and Harbour Company, was acquired by
leading property and transport group, Peel Holdings Limited.
The Port now operates as a major component of the Peel Group's ports division which with
the Mersey acquisition, becomes the UK's second largest ports group incorporating
Clydeport in Scotland, the Manchester Ship Canal, Heysham Port in Lancashire and Medway
Ports in the South East of England. It also operates container terminals in Cardiff and the
Irish ports of Belfast and Dublin.

Five years ago the Port of Liverpool was ranked fourth among UK container ports serving the
busy North Atlantic route. Today, it handles more container trade with the United States of
America and Canada than any other port in the land. Other developments in the global
container market have opened up a whole range of new routes for shippers moving their
goods through the Seaforth Terminal, adding further benefits to a facility already
acknowledged as Britain's most efficient container gateway.
Liverpool's success has been achieved by a combination of contemporary initiative and
established fact, which has put the Port in a win-win position.
The Mersey Docks and Harbour Company's decision to look at developing a river container
terminal capable of handling the new generation of larger post Panamax vessels reflects the
new dawn Liverpool is facing. Other elements of the Port's diverse range of cargoes have
added further optimism to the Port's prospects with new trades and rising volumes which
totalled a record 32,226,000 tonnes in 2004.
But an increasingly significant influence upon Liverpool's success is the Port's geographic
location as the gateway to the second richest cargo hinterland in the country and its ease of
access by road and rail.

The Port of Liverpool has benefited from its long-term

policy of maintaining and developing the most diverse
range of traffics to be handled by any UK port

Neocons Take An Odd Stance

These are the same Bush Neocon/ Advisors, who bombed Iraq to the stone age
because Saddam was evil. They told us, 'They are bad, and we are good', but
today the s are 100% behind this port deal.

Who Are These People ?

These are Neo-Cons (new conservatives), and they are all Dual Citizen Israelis.
Not a single one served in the US armed forces. They basically are a lobby that
pushes for Israeli-oriented bills.

Paul Wolfowitz

Dov Zakheim

William Crystol

David Frum

Robert Kagan

Norman Podhoretz

Robert Satloff

Robert Satloff

Elliot Abrams

David Wurmser

Richard Haas

Richard Pearle

Edward Luttwak

Tenet/Cohen

Ken Adelman

Douglas Feith

All these men are warmongers, who adore and obey Israel, and who view
America chiefly as Israel's financial sugar daddy and
mercenary slave. Their aim is global power for the elite, and profits for bankers
and Illuminati-directed oil barons. They seem to have no problem if stacks of
bloody young American fighting men mount up in Iraq, Iran, and Syria. The dead,
after all, are valueless.
http://judicial-inc.biz/Arab_port_supplement.htm#Gold%20Exchange

DIAMOND EXCHANGE

Dubai making strong strides toward major center status: Dubai is the logical
location for the Arab world's first diamond bourse because it serves as a
gateway to enormous markets on two continents. As a port of entry for the
Persian Gulf states, Iran, the Indian subcontinent and Africa, Dubai has long
been an important regional center for gold sales in India and the Far East.

The glittering market potential of the Middle East has mesmerized the diamond industry for
many years. Now this crucial region has an official presence in the trade, with the March 29
opening of the Dubai Diamond Exchange (DDE).
The new bourse will be based in the Almas Tower (from the Arabic word for diamond), which is
now under construction on a 300 hectare (740 acre) property owned by the Dubai Metals and
Commodities Centre (DMCC) on Dubai's Sheikh Zayed Road. The custom-built facility, which
is expected to open next year, will serve as a base for large numbers of local and ...

Dubai Diamond Exchange

The Dubai Diamond Exchange (DDE) has announced a co-operative initiative

with the world-renowned HRD Institute of Gemmology to conduct
comprehensive practical and theoretical diamond training courses at the
Exchange.
From right to left: Ahmed bin Sulayem, Chief Operating Officer, DMCC;
Tawfique Abdullah, Chairman of DDE; Chris Swolf, Director, HRD and Jan
Buffaerts, Trade Commissioner, Belgian Trade Center.
This is the first time that diamond traders and gemmology students in Dubai have
the opportunity to learn about various aspects of diamonds sorting and grading
from such a globally recognised institute. The HRD Institute of Gemmology is the
educational department of HRD, a leading non-profit diamond-grading laboratory,
based in Antwerp, Belgium.
The first course, 'Diamond Grading and Identification', which was held from April 10
to 21, 2005, was attended by leading representatives from the diamond and
jewellery trade including RosyBlue, Shalev and Tulip Diamonds, in addition to startup businesses, members of the exchange and the general public.
Addressing a press conference to announce the tie-up today (Monday, April 25,
2005), Tawfique Abdullah, Chairman of DDE, said, 'This partnership with the worldrenowned HRD Institute of Gemmology is in line with DDE's vision of bringing
international standards in diamond grading and other key aspects of diamond trade
to the Middle East region. We are now the sole provider of HRD courses in the UAE
and are confident that diamond and jewellery professionals across the region will
welcome the opportunity to learn from the experts in the diamond trade, right here
in Dubai.'
The Dubai chapter of the HRD Institute of Gemmology course covers topics such as

the '4Cs - carat, colour, clarity and cut', 'External and internal characteristics of
diamonds', 'Measuring inclusions' and 'Diamond Treating Identification'. The trainees
are also given practical workshops in grading and sorting diamonds. On passing,
students receive certificates from the HRD Institute of Gemmology in Antwerp.
Noora Jamsheer, Chief Executive Officer, Dubai Diamond Exchange added, 'Offering
internationally recognised training is integral to raising standards and enabling local
jewellery traders to compete at an international level. We will continue to work with
HRD to offer a wide variety of courses on topics ranging from rough
diamonds to polished diamonds.'
'HRD has been committed to serving the international diamond
industry for several decades. The DDE has been the driving force in
promoting the diamond industry in the Middle East, and we are
excited to work with them to further raise standards in the region.
Together, we hope to provide the required skills and training to
beginners as well as professional diamond graders and traders. We
will be running a variety of courses consistent with the International
Diamond Council rules for grading of polished diamonds,' said Chris Swolf, Directo
http://judicial-inc.biz/Arab_port_supplement.htm#Gold%20Exchange

UNITED ARAB EMIRATES INTERACT

http://www.uaeinteract.com/news/default.asp?ID=291

Metals and Commodities Centre changes its name

posted on 06/03/2006
Commodities free zone Dubai Metals and Commodities Centre changed its
name to the Dubai Multi Commodities Centre on Sunday to better reflect its
interest in a broad range of commodities, officials said.
They said the original name, picked before the Centre's launch, was meant
to build the Centre's association with Dubai's strength as a regional trading
centre for gold. But since its launch in 2002, the commodities centre has
diversified into diamonds and has plans to launch futures trading in energy
and several agricultural commodities.
Sulayem said the original decree from the Ruler's Court, which established
the DMCC Authority in 2002, had also been amended to reflect the new

name. The change reflects DMCC's plans to extend its interests to other
commodities including possibly steel, coffee, pulses, food grains and cotton
with the objective of creating a regional hub for these industries.
She said the acronym DMCC, which is very recognised, will remain
unchanged. DMCC currently has over 720 registered free zone businesses in
various commodity sectors, including in gold and precious metals, diamonds
and coloured stones, tea and energy and Sulayem said he expected this to
rise to 1,000 by the end of 2006.
Created in 2002 as part of a government plan to establish a commodity
marketplace in Dubai, DMCC companies are offered highly attractive benefits
under a free zone status, including a 50-year guaranteed tax holiday, 100
per cent business ownership, full ownership of business premises, and a
secure regulated environment.
DMCC has provided industry-specific market infrastructure, including
launching the Dubai Gold and Commodities Exchange, the Dubai Diamond
Exchange, the Dubai Tea Trading Centre, the Dubai Gem Certification, the
Dubai Gold and Commodity Receipts and the Dubai Cut Diamond. (Gulf
News)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

DMCC registers more than 700 companies as members

posted on 14/02/2006
The Dubai Metal and Commodities Centre (DMCC) has registered more than
700 regional and international companies as members. Ahmad Bin Sulayem,
chief operating officer of DMCC, said that some of the world's top companies
involved in gold, precious metals, diamonds and semi-precious stones,
energy and other commodities have registered with the centre, according to
the Gulf News.
"We expect 25 to 30 new companies working in the gold industry to join the
exchange by next April, thereby increasing the number of members to 140,"
said Bin Sulayem. Companies operating on the exchange produced more
than 220 tonnes of gold in 2005, Bin Sulayem said. "We offer round-theclock electronic trading." Bin Sulayem believes DMCC can be a world leader.

"The world follows us. DMCC can take the lead. From day one, it will trade
electronically, while the New York Mercantile Exchange, one of the bastions
of face-to-face trading, will offer electronic trading alongside its famous open
pits," he added. Bin Sulayem also said that the Chicago Board of Trade and
the Singapore Exchange will launch electronic trading for commodity
derivatives in the third quarter of this year. The chief operating officer said
DGCX will start seven-day trading in the second half of 2006.
(Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Mohammed bin Rashid launches DGCX

posted on 22/11/2005
General Sheikh Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and
UAE Defence Minister has formally launched the Dubai Gold and
Commodities Exchange (DGCX). Sheikh Mohammed pressed the trading
button, launching the world's newest commodities exchange
and the first such marketplace in the Middle East. The DGCX will
commence trading, today at 10am. Sheikh Mohammed
congratulated the DGCX officials and welcomed traders to the
bourse.
The first commodities derivatives exchange in the heart of one
of the busiest trading centre, Dubai will lead to increased economic activity,
job creation and knowledge levels. This will open up career opportunities in
one more exciting field - Commodities derivatives, both for persons who
already have finance related experience as well as fresher's who are about to
venture into the job market. (The Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Dubai Gold and Commodities Exchange (DGCX) granted market

license by SCA to commence official trading
posted on 20/11/2005
Emirates Security and Commodities Authority (SCA) granted Dubai Gold and
Commodities Exchange (DGCX), a license to function as a commodities

derivatives exchange. This license provides DGCX, the regulatory provision

to officially commence trading when it launches on November 22, 2005. SCA
recently also issued new set of regulations for regulating commodities
exchange and its members.
DGCX with the collective experience, credibility and technical expertise of the
joint venture partners (DMCC, FTIL and MCX), will provide a formalised
exchange environment to the participants. This will minimise their risk on
account of price volatility or counter party defaults. The new commodities
exchange will further enhance Dubai's credibility as an emerging financial
super power. With the launch of DGCX, the financial eco-system made up of
banking, stock market and commodities exchange is now complete. (The
Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

DGCX signs deal with Chicago Board of Trade

posted on 03/11/2005
The Dubai Gold and Commodities Exchange (DGCX) signed an agreement
yesterday with the Chicago Board of Trade (CBoT) to explore possibilities of
working together for the benefit of the two markets. The agreement signed
by CBoT president Bernard Dan and DGCX chairman David Rutledge, will
enable the two to work together on margins for simultaneous buy and sell
futures contracts for some commodities.
The 157-year-old Chicago Board of Trade is a leading global derivative
exchange and provides a diverse mix of financial, equity and commodity
futures and options-on-futures products.
The Dubai Gold and Commodities Exchange (DGCX) is the first international
commodities derivatives marketplace in the time zone between Europe and
the Far East. It is poised to begin operations on November 22.
DGCX will commence trading with a 1 kg gold futures contract, to be
followed over a period of time by silver futures, gold and silver options and a
range of other commodities contracts. (The Gulf News)

RETURN TO TOP | WAM UP TO THE MINUTE NEWS

DGCX to go live on November 22

posted on 26/10/2005
The Dubai Gold and Commodities Exchange (DGCX), the first such
marketplace in the Middle East, announced yesterday it will commence
trading on November 22 at 10am with the opening of the gold futures
market. From day one, DGCX will offer an uninterrupted trading window of
more than 13 hours to provide arbitrage opportunities against Far East,
European and American markets.
DGCX opened its membership last June, receiving more than 270
applications in two months. Of these, roughly 200 have been approved in
principle and 50 have been formally admitted. Confirmed members include
Mashreq Securities, National Bank of Dubai, Standard Bank,
Goldas (Turkey), Supama International, and Swiss Gold. (The
Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Over US$66 million worth of Diamond tenders at DDE in 2005

posted on 10/10/2005
The Dubai Diamond Exchange (DDE) yesterday announced that the
Exchange has hosted five rough diamond tenders, valued at over US$66
million, this year. A rough diamond is uncut and unpolished. It is estimated
that the global annual production of rough diamond is valued at US$9.5
billion.
Ahmed bin Sulayem, Deputy Chairman of DDE said: "In 2005, thus far,
435,000 carats of diamond tenders have been transacted at the Exchange
with an approximate value of US$66 million. We see this as an excellent
beginning for the Exchange."
He also added that the response to the tenders has been phenomenal both
locally and internationally. The number of participants has increased from
one tender to the next. The number of serious enquiries has also gone up
tremendously in the recent months and this trend is expected to continue,
he added, according to a press release.

Sulayem indicated that the exchange plans to host many more tenders of a
similar nature which will boost the trade in and through out the region.
The DDE is the first diamond bourse within the Arab region, serving a
broader region of growing trade flows beyond the Middle East, facilitating the
trade of rough and polished diamonds. Dubai is set to join leading
international diamond centres including Antwerp, New York and Mumbai.
(The Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Dubai Gold and Commodities Exchange to become operational

posted on 05/10/2005
Dubai Gold and Commodities Exchange (DGCX) to be operational next
month said yesterday that the fuel oil futures contract would kick off in the
second half of next year. Some 25 companies have already signed up for the
venture, the number, which is expected to double by the time of the launch.
Dr David Rutledge, chief executive officer of Dubai Metals and Commodities
Centre (DMCC), said that DMCC, which has been working on market
regulations for a couple of years now, has appointed Emirates Securities and
Commodities Authority (ESCA) as an industry market regulator. ESCA is a
full member of the International Securities and Commodities Authority.
Fuel exchange has been under evaluation for some time now with various
players in the industry to the first energy future contract traded at DGCX.
'We had discussions with industry representatives and we welcome any ideas
about possible fuel oil futures contract specifications brought to us,' he said,
according to a report in Khaleej Times.
In fact, DMCC has engaged in extensive consultation process with all sectors
of the oil industry in the Middle East and Singapore, including the national oil
companies, integrated oil majors, leading refined product traders,
investment banks and other organisations.
Energy futures contracts issues include range of products, liquidity/volatility,
market players and their participation in risk management, and delivery

versus cash settlement, he said, adding that physical delivery is the best
option. Oil is the most significant commodity in the Middle East region, which
has the biggest share in the world's fuel exports.
DGCX is a joint venture between DMCC, Multi Commodities Exchange of
India Ltd (MCX) and Financial Technologies (India) Limited (FTIL). The
exchange has been developed to facilitate the trade of gold and
commodities. The transactions on the DGCX will take place on a state-of theart electronic trading platform deployed by FTIL. The new exchange, which
has so far received 270 applications, will have two membership categories,
including broker and trade and will have HSBC and National Bank of Dubai as
clearing banks.
DMCC currently has some 590 members. The exchange will commence
operations with gold and silver, followed by fuel oil. DGCX is also considering
steel, cotton and freight futures contracts to be traded at DGCX, which will
be based in one of DMCC's landmark commercial towers. Steel futures
contract, if and once launched by DGCX, is going to be the first dollardenominated steel contract.
The Middle East figures prominently in trade of a number of important
commodities. Commodity trade constitutes approximately 15 per cent of
Dubai's GDP. The emirate is the third most important global re-export centre
after Hong Kong and Singapore. (The Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Dubai will launch fuel oil contracts in 2006

posted on 20/08/2005
The Dubai Gold and Commodities Exchange (DGCX) will launch its energy
portfolio with a fuel oil contract next year to help position Dubai as the Gulf's
energy trading hub, a top official said yesterday. DGCX, a joint venture
between the Dubai Metals and Commodities Centre and Indian partners, is
expected to be launched in November with a gold futures contract.
Freight, energy and more metals contracts will follow on the electronic
derivatives market in Dubai.
Tilak Doshi, executive director of the energy division, said the focus would

be on fuel oil at first and then incorporate other refined products such as
petrol and gas oil. "Now, we are in the process of industry consultations.
We've held a first round in Dubai as well as in Bahrain and Sharjah to talk to
producers, traders and storage companies," he said.
He said the fuel oil trade involves a range of commodities with different
specifications, including 180-centistoke and 380-centistoke fuel oil as well
as straight-run and cracked material. The Dubai government has also signed
a deal with the New York Mercantile Exchange (Nymex) to launch the Dubai
Mercantile Exchange (DME) by the middle of 2006. DME organisers have said
they plan to launch by mid-2006 with an initial offering of a crude futures
contract and that a fuel oil futures will also be introduced early in the
exchange's operations. (The Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Diamond business flourishes in UAE

posted on 06/08/2005
The UAE recorded 30 per cent growth in rough diamond export last year with
the value of exports and re-exports reaching Dh5.4 billion compared to
Dh4.4 billion in 2003. While the value of rough diamonds imports to the UAE
reached Dh3.2 billion as compared to Dh2.1 billion in the year 2003,
according to dailies Dubai's share of the global market continues to grow
with the launch of The Dubai Diamond Exchange (DDE), which is providing a
major impetus to the diamond trade.
According to Tawfique Abdullah, chairman, DDE, termed the launch of the
diamond exchange by Dubai Metals and Commodities Centre (DMCC) a step
closer towards the goal of establishing Dubal as a diamond centre of
excellence.
"The DDE has opened the door to tremendous opportunities for local,
regional and international diamond traders. With our industry-specific
initiatives, Dubai will undoubtedly facilitate more business for the diamond
industry," he observed. Abdullah also believes that the implementation of the
Kimberley Process Certification Scheme(KPCS) by DMCC has encouraged and
enhanced the business of import and export of diamond in the country. The

UAE is the first Arab country to implement KPCS. (The Emirates News
Agency, WAM)

Khalifa reviews projects models

posted on 08/03/2006
President H.H. Sheikh Khalifa bin Zayed Al Nahyan on Monday
reviewed the master plan for the development of Al Lulu Island, in presence
of General Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince
and Deputy Supreme Commander of the UAE Armed Forces.
The project, which is being developed by Surouh Real Estate
Company, will be developed in Al Lulu Island as a new
waterfront bustling with mixed use commercial, residential,
cultural and recreational facilities. The project will also entail
construction of modern infrastructure and associated facilities.
Sheikh Khalifa was briefed by Surouh executives on the
company's objectives and its current and future projects
including its flagship scheme Shams Abu Dhabi, to be built in Al Reem
Island. (Emirates News Agency, WAM)

RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Tunisian President Receives Abdullah

posted on 08/03/2006
Tunis - President Zine el-Abidine Ben Ali of Tunisia received here yesterday
UAE Foreign Minister, Sheikh Abdullah bin Zayed and the accompanying
delegation. Sheikh Abdullah said he had conveyed to President ben Ali the
compliments of President H.H. Sheikh Khalifa bin Zayed Al Nahyan and his
best wishes for the Tunisian people.
The meeting, which was attended by UAE Ambassador to Tunisia Sultan
Rashid Al Kaitoob, discussed bilateral relations and means of boosting them
for the mutual benefits of the peoples of the two sisterly countries. Sheikh
Abdullah lauded the cordial ties linking Tunisia and the UAE and expressed
hope that they would be further strengthened.
He said he had discussed a number of bilateral issues, particularly joint
venture projects under the Tunisian-UAE partnership initiative. Before
leaving Tunis, Sheikh Abdullah had talks with Minister Abdel Aziz ben Dia,
Private Presidential Advisor and Spokesman of the Presidency of the

Republic. (Emirates News Agency, WAM)

RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Algerian President meets Abdullah

posted on 08/03/2006
Algerian President Abdelaziz Bouteflika received yesterday visiting UAE
Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan. Sheikh Abdullah
conveyed to the Algerian leader the best wishes and greeting of UAE
President H.H. Sheikh Khalifa bin Zayed Al Nahyan and H.H. Sheikh
Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler
of Dubai. Sheikh assured President Bouteflika of Sheikh Khalifa's keenness to
further develop bilateral relations in all spheres. Sheikh Abdullah stated after
the meeting that the joint UAE-Algerian economic ministerial committee
would meet in May. (Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Women's Day is a time to promote dialogue: Sheikha Fatima

posted on 08/03/2006
The International Women's Day which will be celebrated today is an occasion
to explore avenues of cooperation and promote the culture of peace and
dialogue amongst world's civilisations, said H.H Sheikha Fatima bint
Mubarak.
As she extended her congratulations on the occasion to women in the UAE
and elsewhere around the globe, Sheikha Fatima said: "This memorable
occasion does not only constitute the right to time to reflect on our national
achievements but also a time to reach out to our colleagues in sisterly and
friendly countries with the aim of reinforcing peaceful dialogue amongst
world's civilisations".
Sheikha Fatima noted that reinforcement of cultural dialogue will serve the
common good of mankind as opposed to calls for clash of civilisations will
yield nothing but devastation.
Sheikha Fatima said women in the UAE and elsewhere have the duty of

maintaining the achievements that have been made over the years. "Women
must also have a say on issues that affect the stability of their societies",
said Sheikha Fatima in a statement to mark the occasion.
She reiterated here call for UAE women to adhere to Arab and Islamic
values. "This occasion comes at a time when UAE women are faring well , as
they have become part of the decision making process in the country, and
enjoying the full confidence of H. H President Sheikh Khalifa bin Zayed Al
Nahyan and Their Highnesses Supreme Council Members and Rulers of the
emirates.", she said, adding that the future looks promising for UAE women.
On Arab women, Sheikha Fatima cited the successes made by the Arab
Women's Organisation which has evolved many projects aimed at
empowering women throughout the Arab world. "As we celebrate this
occasion, we should not forget the suffering of women in Palestine and Iraq
and other countries", she said.
The International Women's Day (March 8) is an occasion marked by women's
groups around the world. This date is also commemorated at
the United Nations and is designated in many countries as a
national holiday. It is a time when women on all continents,
often divided by national boundaries and by ethnic, linguistic,
cultural, economic and political differences, come together to
celebrate their Day and look back to a tradition that represents
at least nine decades of struggle for equality, justice, peace and
development.
International Women's Day is the story of ordinary women as
makers of history. It is rooted in the centuries-old struggle of women to
participate in society on an equal footing with men. (Emirates News Agency,
WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

New UAE envoy to US says relations need further development

posted on 08/03/2006
The new UAE Ambassador to the United States, Saqr Ghobash, has an uphill
challenge ahead of him but he is a man well-prepared for such a mission.

While bilateral relations between the UAE and the US governments are
seemingly smooth, the same cannot be said about the perception of the UAE
by the American public.
"No doubt, the UAE maintains close ties with the United States, but there is
a lot to do to further develop these ties on all levels," the former
undersecretary of the then Ministry of Information and Culture told Gulf
News in an interview shortly before he left for his new post in Washington.
With many Arab nations coming under fire after the 9/11 attacks, the
American public has never been more suspicious of the region. In more
recent events, some members of the US Government are contesting a ports
deal that would see a Dubai-based company, DP World, oversee US ports.
This has triggered strong reactions, with people objecting to a UAE company
taking control.
Ghobash says he will work to further develop relations of friendship and
cooperation between the UAE and the United States. "The United States is a
major power with which we have maintained distinguished relations since
1971. We have achieved a lot in this regard, but we have a long way to go."
Ghobash added the UAE's relations with Washington should not be affected
by whatever decision is taken on the ports deal. "Our ties with the United
States should not be linked to the ports deal, but lessons should be drawn
from this issue. "We should get our message across to influential bodies in
the United States. Facts about the UAE should be provided to these bodies to
correct the American public's opinion of the UAE," he said.
He added he understood US security concerns. "The offer by DP World of a
broader review of security issues in its deal to take over major operations at
six US ports was the right decision. We are confident that further review will
confirm that DP World's acquisition of P&O's US operations does not pose
any threat to America's safety and security," Ghobash said.
Trade relations between the UAE and United States, especially in oil, have
developed into friendly government-to-government ties, which include
security assistance. The breadth, depth and quality of US-UAE relations
increased dramatically as a result of the US-led coalition's campaign to end
the Iraqi occupation of Kuwait. In 2002 the two countries launched a

strategic partnership dialogue covering virtually every aspect of

the relationship.
The UAE has been a key partner in the war on terror. The United States was
the third country to establish formal diplomatic relations with the UAE and
has had an ambassador resident in the UAE since 1974. (Gulf News)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

RCS offers food parcels to Iraqi displaced families

posted on 08/03/2006
The UAE Red Crescent Society (RCS) distributed over the last two days
thousands of food parcels to affected people displaced by the recent tragic
events in Samra as part of its relief campaign in Iraq. Ali bin Shumail Al
Ka'abi said the assistance were given to the most needy population in
coordination with the Iraqi Red Crescent, ministry of immigration and other
civil society agencies.
These supplies, he noted represented the second batch of aid to the
Najaf province. 'The RCS will continue to extend relief supplies to those
affected people until their ordeal is over,' he said, adding that over 2.5
billion Iraqi Dinars had been earmarked for the campaign which was
launched two months ago. (Gulf News)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Central Bank issues commemorative coins

posted on 08/03/2006
The UAE Central Bank announced that it will be issuing with effect from next
Saturday commemorative gold and silver coins on the occasion of the first
anniversary of H.H. Sheikh Khalifa bin Zayed Al Nahyan as President of the
UAE. A bank statement said the face depicts the portrait of Sheikh Khalifa
and the back features the Emirates Palace.
'The gold coin will have a diameter of 42.45 mm, weight 60gms while the
silver one will be 50 mm in diameter and 59 gms in weight,' it said.
Three commemorative coins -two gold and one silver will also be issued in

memory of the late Sheikh Zayed bin Sultan Al Nahyan, founder

of the UAE and leader of its progress, according to the release.
The face depicts the portrait of the late Sheikh Zayed while Sheikh Khalifa's
portrait appears on the back. The first 60gms and second 40gms
commemorative gold coins will have a diameter of 42.45 mm and 40mm
respectively. The third 50 mm diameter silver coin of Dh 100 denomination
weighs 59 gms.
Those interested may purchase the commemoratives gold and silver coins
from tellers at banks operating in the UAE. Each gold coin will be sold at the
yellow metal price on the day of sale plus the additional costs estimated at
Dh 60, while the silver coin will be sold at its face value plus the additional
costs at Dh 20. (Emirates News Agency, WAM)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Nokia wins Dh700m du deal

posted on 08/03/2006
Nokia, the Finnish telecom giant, has won a US$190 million (Dh700 million)
managed services contract from du, the second telecom operator in the UAE.
According to the agreement, Nokia will build the complete GSM/GPRS and
3G core network for du as well as the majority of the radio network with
turn-key responsibility.
du CEO Osman Sultan said the company's strategy was focused on investing
in an advanced fixed and mobile network based on the latest 2.5G and 3G
mobile technologies, and a next generation fixed line network. "We will focus
on the quality of the products and services we offer to the market. We chose
Nokia because it was the best company, technically and commercially, to
enable us to carry out our strategy."
Sultan said du would begin its GSM service within four to six months. "We
have always said we would start services in the second half of the year," he
said.
du's CEO said Nokia won the bid after competing against six international
companies. "Nokia's bid was the best. We made the choice in January to

establish 80 per cent of the mobile phone network," said

Sultan, adding that the contract was only the first to be
awarded.
There will be additional business for both Nokia and its competitors to bid for
in the future. e confirmed that du was now studying du sim card with Nokia
phones or another brand. "We prefer to leave consumers free to choose any
mobile brand, but we will offer them packages on a commercial bases," said
Sultan.
He said Nokia started building the du network two months ago. "We will
cover most of the emirates and will use the ETISALAT network with a licence
of TRA," said Sultan. u will open branches in Dubai, Abu Dhabi and the
northern emirates in accordance with some local distribution agreements.
Sultan said the timing of offering fixed line telephone services depends on
TRA instructions.
Sultan welcomed the decision to give UAE national teachers 3,000 shares in
the company. "The IPO gives us the backbone to face the challenges of
providing a better service with excellent value for money." (Gulf News)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

EMAAR Industries plans US$1b projects

posted on 08/03/2006
EMAAR Industries and Investments (EII), a private joint stock company
launched by property developer EMAAR in February last year, is working on
nine industrial projects valued at US$1 billion. An EMAAR Industries official
told Gulf News the company will work with strategic partners to establish
these projects in Gulf countries.
EII will set up the projects to make engineering goods, construction
materials and petrochemical products, the company's corporate head Marcel
Rached said. The company is in talks with a Chinese automotive engineering
group to set up a facility in the region to build auto parts.
Among the company's joint venture partners are GCC-based industrialists.
Rached declined to say where the projects would be located. EMAAR, better

known for its large-scale real estate ventures, said 'strategic diversification'
would allow it to support other sectors of the economy.
EMAAR Properties' projects both locally and internationally," a company
statement said. EII is owned 40 per cent by EMAAR and has a capital of
Dh250 million. Amlak Finance holds 10 per cent of EII and the remaining
shares are held by prominent UAE national investors. The company has
invested Dh700 million in companies in the construction industry, including
the acquisition of three companies make home building products. Among the
company's joint venture partners are GCC-based industrialists. (Gulf News)
RETURN TO TOP | WAM UP TO THE MINUTE NEWS

Dh5.8b surplus budget for Dubai approved

posted on 08/03/2006
Dubai's budget for the 2006 fiscal with a projected surplus of Dh5.8 billion
has been approved by His Highness Sheikh Mohammad Bin Rashid Al
Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The budget's revenues for this year were estimated at Dh78.7 billion, while
expenditures stood at Dh72.9 billion, reported WAM. The increase in
revenues for the fiscal is estimated at Dh22.7 billion, while the increase in
expenditures is expected to reach nearly Dh21 billion over the previous year.

Financial experts and analysts welcomed the budget, saying it reflected

Dubai's booming economic growth. The budget included two basic sectors,
the public and economic. Revenues of the public sector reached Dh19.8
billion, while its expenditures were estimated at Dh18.5 billion, with a
surplus of Dh1.3 billion.
The economic sector's revenues reached Dh58.9 billion, and its expenditures
were estimated at Dh54.4 billion, with a surplus of Dh4.5 billion.
Last year, the total expenditure was projected at Dh52 billion against a net
income of Dh56 billion, leaving a surplus of Dh4 billion.
Speaking to Gulf News, a cross-section of analysts said the budget indicates

the financial stability of Dubai and sends out a strong message to oil
producing countries to diversify their economies. The transparency also sent
out the right message to foreign investors about Dubai's income.
"This budget indicates the continuing economic growth ... The increased
incomes show that the whole non-oil economy dominated by construction,
manufacturing and banking sectors is doing really well," Dubai-based
economist Dr Mohammad Al Asoomi told Gulf News.
"This data should help the country to attract more foreign direct investment.
It should also give more confidence potential investors. The economy is
doing well and the information contained in the budget presents that
picture," he said, adding that the standard of living in Dubai has risen and
the emirate's GDP has enjoyed constant growth.
Other experts said the first-time disclosure of the accounts last year
reflected a number of facts. It was a step towards the upholding of
international financial standards of accountability and transparency, which
are crucial elements for attracting investment.
Since Dubai has no foreign debt, the surplus would probably go to
government reserves, the experts felt. It will also give a further push to
develop the non-oil sector. This year's budget will also prove a real boost for
businesses.
"This kind of growth rate is reflective of an economic boom. What is good is
that despite modest contributions from the oil sector, Dubai is presenting a
healthy budget surplus," said one analyst. Tourism and trade should be
among key contributors to the revenue growth projections, he said. (Gulf
News)

GOLD EXCHANGE

Building a new home for the worlds commodity trade.

For as long as anyone can remember, the city of Dubai has relied on commodities
trading for its staple income. The early days as a fortified fishing port soon gave
way to a flourishing pearling industry. As, Dubai began to exploit its geographical
position between Europe and Asia, this was replaced by an economy built on the
re-exportation of goods. The emirate has been blessed with some oil wealth, but at
its heart has always been a home for entrepreneurial merchants and companies
wishing to base themselves in a cosmopolitan and globally connected community.
Thanks to the popularity of the Gold Souk area in the
Deira district, Dubai has become known internationally
as the City of Gold. An astonishing 20 per cent of the
global gold trade passes through the city, making it a
business worth an estimated $4 billion annually. Some of
that is certainly wholesale and paper trading, but a
growing proportion of the trade is attributable to domestic
retail sales that are made either in the Gold Souk itself or
in one of Dubais numerous air-conditioned shopping
malls.
Quite a Place to Buy Jewelry

Ahmed Bin Sulayem,

DMCCs Chief Operations

According to government statistics, 95 per cent of visitors to Dubai buy jewelry during their stay.
Given that the number of visitors arriving in the city is expected to double to 10 million by 2010,
there is small wonder that companies involved in the diamonds and precious metals business are
so bullish about Dubais prospects.
Recognising the opportunity to harness the power of existing commodities businesses while
attracting new ones to the emirate, the government founded the Dubai Metals & Commodities
Centre (DMCC) in 2002. The premise of the DMCC is to provide companies engaging in
commodities trading and support services with a free zone environment featuring 100 per cent
business ownership, a guaranteed 50-year tax holiday, a one-stop shop for regulation and
licensing, and a custom designed infrastructure. Three target segments have been identified

gold and precious metals, diamonds and coloured stones, and other commodities. The centers
objective is to create a dedicated market place for these goods. This will broaden the range of
activities undertaken in the local market while simultaneously increasing the value and volume
of commodities traded in and around the Middle East region.
According to David Rutledge, acting chief executive and executive director of commodities for
the DMCC, the centre has already registered more than 425 companies across the three core
segments. These companies not only hail from the Middle East but from Asia and Europe, and all
are attracted by the combination of regional demand and Dubais position at the crossroads
between continents.
Dubais attractions really vary by commodity, he explains. The city is already a major bullion
centre, along with New York, London, Zurich and Tokyo, and for gold part of the demand is for
local jewelry while another is for the nearby market of India the worlds largest consumer of
gold. Similarly, for diamonds we enjoy proximity to the source nations in Africa and Russia and
are in a natural position to intermediate in the flow from producer to fabricator to consumer.
Then there are other commodity products such as energy, tea, spices and steel. Energy is an
obvious commodity for Gulf markets, but steel might seem odd, as it isnt sourced here. All you
need to do is look at the skyline in Dubai to see how much local construction demand there is for
steel, though. Beyond Dubai, we also expect demand for the reconstruction of Iraq over the
coming years and for major development work in countries like Iran.
A Commodity Campus to Be Built
DMCC licensees are already trading from temporary premises in Dubai, but the centers 300hectare campus wont be completed until late 2006. Located near to the Emirates Golf Club on
the arterial Sheikh Zayed Freeway linking Dubai to Abu Dhabi, the campus will provide an array
of mixed-use towers in which DMCC-registered businesses can undertake commodity trading
and manufacturing. Designed for jewelry manufacturers, and containing 500 factory units,
workshops and residential facilities, the three 12-story towers of the Jewellery and Gemplex
opened their doors in January. Mid-January also saw freehold units in the flagship Almas Tower
and Au Towers go on sale.
Rising 65 stories above an island, the spiral-design glass Almas Tower (Almas means
diamond in Arabic) is expected to become the new home for Dubais diamond trading
community, and is being built to include such industry-oriented features as natural lighting,
vaulting facilities and reinforced flooring, strong enough to support heavy safes. Similarly, the 37
stories of the Au Tower will be customised to meet the needs of the gold industry.
Even though the DMCC anticipated significant demand and doubled the original size of the
Almas Tower, all units sold out in less than 24 hours. Properties in the Au Tower were in
similarly high demand, taking only 48 hours to sell out. The last high-rise tower, Elaf Tower, has

yet to go on the market, but units will only be available for leasehold.
A Unique System of Negotiable Receipts
As they wait to take possession of their premises, the DMCCs licensees are coming to grips with
new systems and facilities that the centre has put in place to guarantee efficient and transparent
trading operations. The first of these initiatives was the Dubai Commodities Receipt (DCR)
mechanism, essentially a series of negotiable electronic warehouse receipts issued both to
facilitate the financing of goods and to combat fraud.
Launched in September 2004, DCRs are issued once goods are deposited in a DMCC-approved
warehouse and are stored in a web-based management system. The existence of a DCR proves
the existence of the goods, and so a trader can then use the DCR either to conduct trades with
other registered members of the system or as collateral to obtain finance from member banks.
Early financial services members of the DCR mechanism include Citigroup and the UKs HSBC
and Standard Chartered banks.
The DCR is similar to an electronic warehouse receipt systems at the New York Board of Trade
and the London Metals Exchange, explains David Rutledge. The difference really is that their
systems are designed to facilitate trading as the delivery end of a commodity derivatives trading
platform while ours is also a financing mechanism. That makes the DCR a unique concept, and
one that is flexible enough to be used by member banks anywhere in the world.
The DMCC is also preparing to launch a Dubai Gold and Commodities Exchange (DGCX) in the
second half of this year. Announcing a technical partnership with Multi-Commodity Exchange of
India and Financial Technologies India Ltd in early November, the DMCCs executive director
for gold and precious metals, Colin Griffith, said the exchange would use a state-of-the-art
electronic trading platform.
The first contract to be listed will be gold, but that will quickly be followed by other contracts,
he said. As the exchange develops and gains in prominence we expect a significant amount of
trade in silver, steel, freight, cotton and energy contracts, so that we can achieve a balanced
portfolio with futures and options contracts available for all listed commodities.
As an added benefit for companies trading contracts on the DGCX, insiders say that the
exchange is likely to be regulated by the DFSA, the independent financial services regulator that
has been set up at the new Dubai International Financial Centre (DIFC). This arrangement is yet
to be confirmed, but the DMCC has already opened the exchange for membership applications.
Approved companies can either join as market members who may only trade in a specified
commodity on their own behalf, or as general members who may trade in any category of goods
both for themselves and for clients.

PROSTITUTION RACKET IN DUBAI AN AFFRONT TO ISLAM'S HOLIEST

PLACES

Several years after the collapse of communism, thousands of prostitutes are still
flocking to Dubai, the trade centre of the United Arab Emirates (UAE), from the
countries of the former Soviet Union. And although prostitution is illegal in the
emirate, this appalling trade in human flesh is a high-profile activity in a region
which hosts Islam's two holiest places - Makkah and Madinah. Even the selfappointed custodians of the shrines approve of the racket, travelling to Dubai to
indulge themselves.
Many of the 'night butterflies', as prostitutes are called in Russian, are young
Muslim women - some former students - who came looking for work but have
ended in a trap of sin, poverty, exploitation, hopelessness and fear.
Indeed, those who try to escape their ordeal often only manage to get killed by pimps and others
who have an interest in seeing them secure in their cages. They are in dire need of rescue - not
condemnation - and rehabilitation to prepare them for a life fit for Muslim women.
There are now several thousand prostitutes in Dubai. Apart from a few African women, they
come from Russia, the Ukraine, Georgia, Kazakhstan, Uzbekistan, Azerbaijan, Chechenya,
Kyrgyzstan and other republics of the so-called Commonwealth of Independent States (CIS).
This may be a trickle compared to the hundreds of thousands of young women that flooded into
Western Europe when the Soviet Union collapsed, but it is already causing great embarrassment
in a sparsely-populated Muslim country, whose authorities are ignoring it for reasons of their
own.
The women arrive on weekly flights from the CIS on pre-arranged visas by agents who then
confiscate their passports, set them to 'work' and force them to buy back their travelling
documents in addition to paying for the arranged visas and the awful accommodation they are
given. As soon as the visas expire the women are on the run and become entirely dependent on
their pimps. Each day a prostitute stays on without a visa is equivalent to a fine of 16.

All visitors to Dubai, except British citizens, are required to be sponsored by a local sponsor. It is
this system of sponsorship, manipulated ruthlessly which partly makes possible the arrival, and
stay, of so many women that are in effect illegal immigrants. Despite their legally precarious
position, the prostitutes are becoming bolder and bolder - thronging Dubai's beaches, night-clubs
and hotel bars, and openly walking the streets. The majority of their clients are Arabs but the
western expatriates are also coveted patrons.
They have in fact become so bold, that even seasoned expatriates are shocked by their
aggressiveness. According to one of the very rare foreign reports on the topic, a Swiss engineer
who has worked in most of the Gulf States, including Oman and Bahrain, finds their behaviour
unprecedented.
A recent article in the London-based Sunday Times quoted him as saying: 'I have never seen such
in-your-face prostitution as this. I had literally just stepped into the lift of my hotel when a
Russian girl tried to invite herself into my hotel room.'
Yet, the authorities turn a blind eye to this outrage, largely because the business community, both
Arab and expatriate, prefers things this way. Dubai, like Bahrain, 'has prospered as a centre for
fun-starved Saudis,' as the Sunday Times report puts it.
Dubai owes most of its prosperity to its status as the region's tax-free centre. No longer able to
rely on its oil reserves, it defers to the business community which, like secular Gulf Arabs, wants
to preserve a Shari'ah-free zone in the region. The six remaining members of the UAE, and their
western protectors, share Dubai's antipathy to an Islamic way of life and back its decision to
tolerate the prostitution racket.
This explains the extraordinary denial by the emirate's police that the racket exists or that there
are large numbers of foreign women who are illegal immigrants as a result of the expiry of their
visas or confiscation of their passports by the pimps. It also explains why the local media are
under orders from the authorities not to comment on the issue.
Only one thing worries the Gulf potentates and the west about the racket: it is an aspect of the
growing drug-smuggling and money-laundering activities of the pimps which is controlled by the
Russian mafia. Western officials are concerned that the drugs will end up in their countries and
that the money-laundering will cover illegal operations there.
It is not surprising that the joint operations carried out by western and Gulf officials in recent
months have concentrated on the drug-smuggling and money-laundering aspects - ignoring the
prostitution issue altogether. In July, a joint police investigation smashed a 25 million drug ring.
It was only after arrests were made as a result that Shaikh Zayed bin Sultan al-Nahyan, the UAE
president, was moved to hold a crisis meeting with the other six rulers. Even then, no
announcement was made and no action taken. Shaikh Zayed simply urged the sponsors to be
more vigilant.
The prostitutes - and the child camel jockeys smuggled into UAE out of the Indian subcontinent are apparently the only illegal 'foreign workers' immune from expulsion. Hundreds of children,

some as young as five, are forced to ride on camels in desert races on which huge sums are
gambled. Their terrified screams make the camels run faster. And like prostitution, the
employment of young jockeys is illegal in the UAE (since 1993) but the authorities also turn a
blind eye. Again, like the prostitutes, many of the child jockeys are Muslim children who are
being ruthlessly exploited and are in dire need of rescue.
Unlike the prostitutes and the child jockeys, foreign workers in the UAE, including those on
legal stay, are routinely rounded up and expelled. Between 1991 and 1996 more than 145,000
workers, mostly Muslim, were sent home (see Crescent International report of December 16-31,
1996). More recently, Saudi Arabia expelled nearly 400,000 workers from the kingdom, accusing
of them being there 'illegally.' The majority had simply changed employers - a right denied
foreign workers in the kingdom.
The Saudis and Kuwaitis who are engaged in rounding up Muslim workers, approve of the
presence of the young prostitutes and jockeys for their own diversion.
There are ample opportunities for doing business in the UAE. At the present
time the economy is booming GDP having risen by 20.4 per cent in 2000.
Although a significant proportion of that increase was due to higher oil
prices, government encouraged industrial diversification is also contributing
to continuing economic prosperity. A signatory of the General Agreement on
Tariffs and Trade, the UAE supports a liberal economy and is committed to
free trade. The UAE currency is secure and freely convertible. There are no
restrictions on profit transfer or capital repatriation. Import duties are low (4
per cent) and in the case of foodstuffs, medicine, agricultural products, and
items imported for use in the free zones are non-existent. Labour costs are
competitive, and corporate tax and personal taxes are nil. In addition every
effort is being made to reduce the paperwork involved in establishing a
business in the UAE. These factors combined with a strategic, accessible
location, an excellent reliable infrastructure and an extremely pleasant and
safe working environment bode well for future investment.

TThe UAE is a highly cosmopolitan well-educated society, familiar with the

methods and means of doing business worldwide, however there are a few
points which people new to the Arabian business environment should keep in
mind.
Here, more than anywhere else, business is conducted on the basis of
personal relationships and mutual trust. It is vitally important to build on
these.

Although it is changing rapidly and large firms are structured as in the rest
of the world, companies are often a family affair, with the ultimate decisionmaker being the head of the family. Even if this is not the case, it is essential
to clearly identify the decision-maker. However, your initial meetings will
probably be at a lower level. These are also very important as a means of
building mutual trust. Print your business card in English and Arabic and
make sure that all brochures and presentation material are full-colour and
well produced.
Good manners and courtesy are prized attributes. Nevertheless, although
you should always arrive on time for a meeting, punctuality is not considered
a virtue and you may be kept waiting before or during your meeting. Do not
be impatient. Take the time to chat and drink the coffee, tea or soft drink
that is always on offer and establish the relationships that will stand you in
good stead. Do not be put off if your meeting is interrupted by other guests
or telephone conversations. The upfront, hard-hitting approach is generally
not welcome. Be aware that what may seem like evasiveness on the part of
your host is usually an unwillingness to say no to your face. Nevertheless,
once a deal, is made, orally or otherwise, an Arab businessmans word is his
bond and you are also expected to perform accordingly, even if the
agreement is a verbal one. This can be disconcerting if you come from a
business environment where verbal agreements are not binding.
Hospitality is a way of life in the Arab world and business is frequently
conducted over lunch or dinner more than likely in a hotel or restaurant. It
is also considered polite to return the invitation.
Language
Although Arabic is the official language, English is widely used in business
transactions.

BANKING AND FINANCE

The UAE Central Bank is the primary regulatory authority. Federal law
restricts foreign banks to no more than eight branches each and requires
that every commercial bank must have a paid-up capital of at least Dh40
million. There are few investment or merchant banks at present. Under new
rules issued in 1996 permission for establishment of representative offices of
foreign banks will be granted by the UAE Central Bank provided that the
capital of the parent bank is not less than Dh183.7 million (US$ 50 million)
and such bank has been in operation in its home country for at least ten
years.
For medium-term or long-term industrial finance, companies can approach
the Emirates Industrial Bank, set up by the UAE Government with an initial
capital of Dh500 million. Its main objective is to help develop the private
sector.
Import and export financing can be arranged through the commercial banks.
Leasing and hire purchase is available from local finance companies
specializing in this business.

Banks are open to the public from Saturday to Wednesday between 8 a.m.
and 1 p.m. and from 8 a.m. to 12 noon on Thursday. Mashreq and Standard
Chartered banks are also open from 4.30 p.m. to 6.30 p.m. Banks are closed
on Fridays and public holidays.
http://www.uaeinteract.com/business/bbanks.asp

Government Departments and Offices of Dubai

P.O.B. Telephone
Chamber of Commerce & Industry

1457

04 2280000

Dept of Civil Aviation

2525

04 2166333

Dept of HH the Ruler's Affairs & Protocol

207
Affairs

04 3531060

Dept of Ports and Customs

63

04 3459575

Development Board

4911

04 2216000

DTCM

594

04 2230000

Dubai Duty Free

2525

04 2245004

Dubai Economic Development Dept

3223

042020201

Dubai International Airport

252

04 2245555

Dubai Municipality

67

04 2215555

Dubai Naturalisation & Residency Dept

4333

04 3980000

Dubai Police & Traffic Dept

1493

04 2292222

Dubai Police Headquarters

1493

04 2292222

Dubai Ports Authority

17000 04 3451545

DP World

17000 04 8811110

Dubai Water & Electricity Authority

564

Jebel Ali Free Zone Authority

17000 04 8812222

UAE General Information Authority

13035 04 2940909

UAE Radio and TV

1695

04 3369999

UAE State Audit Institute

5513

04 2286000

04 3041444

POLITICAL SYSTEM
Supreme Council Members
Crown Princes and Deputies of the Rulers
Members of the Cabinet
Federal National Council

Federal Judiciary
Local Government
Federal and Local Government
Traditional Government
A Balanced Approach
Return to Government main index
POLITICAL SYSTEM
Since the establishment of the Federation in 1971, the seven emirates that
comprise the United Arab Emirates (UAE) have forged a distinct national
identity through consolidation of their federal status and now enjoy an
enviable degree of political stability. The UAEs political system, which is
a unique combination of the traditional and the modern, has underpinned
this political success, enabling the country to develop a modern
administrative structure while, at the same time, ensuring that the best of
the traditions of the past are maintained, adapted and preserved.
Known until 1971 as the Trucial States, each of which had separate treaty
relationships with Britain, the seven emirates came together to establish a
federal state officially entitled Dawlat al Imarat al Arabiyya al Muttahida
(State of the United Arab Emirates).
The philosophy behind the UAE was explained in a statement that was
released on 2 December 1971 as the new state was formally established:
The United Arab Emirates has been established as an independent state,
possessing sovereignty. It is part of the greater Arab nation. Its aim is to
maintain its independence, its sovereignty, its security and its stability, in
defence against any attack on its entity or on the entity of any of its
member Emirates. It also seeks to protect the freedoms and rights of its
people and to achieve trustworthy co-operation between the Emirates for
the common good. Among its aims, in addition to the purposes above
described, is to work for the sake of the progress of the country in all fields,
for the sake of providing a better life for its citizens, to give assistance and
support to Arab causes and interests, and to support the charter of the
United Nations and international morals.
Each of the component emirates of the Federation already had its own
existing institutions of government prior to 1971 and, to provide for the
effective governing of the new state, the rulers agreed to draw up a
provisional Constitution specifying the powers that were to be allocated to

new federal institutions, all others remaining the prerogative of the

individual emirates.
Assigned to the federal authorities, under Articles 120 and 121 of the
Constitution, were the areas of responsibility for foreign affairs, security and
defence, nationality and immigration issues, education, public health,
currency, postal, telephone and other communications services, air traffic
control and licensing of aircraft, in addition to a number of other topics
specifically prescribed, including labour relations, banking, delimitation of
territorial waters and extradition of criminals.
In parallel, the Constitution also stated in Article 116 that 'the Emirates shall
exercise all powers not assigned to the Federation by this Constitution'. This
was reaffirmed in Article 122, which stated that 'the Emirates shall have
jurisdiction in all matters not assigned to the exclusive jurisdiction of the
Federation, in accordance with the provision of the preceding two Articles'.
In May 1996, the Federal Supreme Council approved an amendment to the
provisional Constitution, naming Abu Dhabi as the capital of the state and
declared the revised document to be the countrys permanent
Constitution.
The new federal system of government established in 1971 included a
Supreme Council, a Cabinet, or Council of Ministers, a parliamentary body,
the Federal National Council, and an independent judiciary, at the apex of
which is the Federal Supreme Court.
In a spirit of consensus and collaboration, the rulers of the seven emirates
agreed during the process of federation that each of them would be a
member of a Supreme Council, the top policy-making body in the new state.
They also agreed that they would elect a President and a Vice-President from
amongst their number, to serve for a five-year term of office. The Ruler of
Abu Dhabi, Sheikh Zayed bin Sultan Al Nahyan, was elected as the first
President, a post to which he was re-elected at successive five-yearly
intervals until his death in November 2004, while the Ruler of Dubai, Sheikh
Rashid bin Saeed Al Maktoum, was elected as first Vice-President, a post he
continued to hold until his death in 1990. Both were succeeded by their
Crown Princes, who became Rulers of their Emirates and were elected by the
members of the Federal Supreme Council to become respectively President,
for the Ruler of Abu Dhabi, and Vice-President, for the Ruler of Dubai.
Return to top / Return to Government main index
Supreme Council Members

HH President Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi

HH Vice-President and Prime Minister Sheikh Mohammed bin Rashid Al
Maktoum, Ruler of Dubai
HH Dr Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah
HH Sheikh Saqr bin Mohammed Al Qasimi, Ruler of Ra's al-Khaimah
HH Sheikh Hamad bin Mohammed Al Sharqi, Ruler of Fujairah
HH Sheikh Rashid bin Ahmed Al Mu'alla, Ruler of Umm al-Qaiwain
HH Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman
Return to top / Return to Government main index
Crown Princes
General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi
and Deputy Supreme Commander of the UAE Armed Forces, Chairman of the
Executive Council of the Emirate of Abu Dhabi
Sheikh Sultan bin Mohammed Al Qasimi, Crown Prince and Deputy Ruler of
Sharjah, Chairman of the Sharjah Executive Council
HE Sheikh Sultan bin Mohammed Al Qasimi, Crown Prince and Deputy Ruler
of Sharjah, Chairman of the Sharjah Executive Council
HE Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ra's
al-Khaimah
HE Sheikh Saud bin Rashid Al Mu'alla, Crown Prince of Umm al-Qaiwain
HE Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman
Deputies of the Rulers
HE Sheikh
of Finance
HE Sheikh
HE Sheikh
HE Sheikh
HE Sheikh

Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister

and Industry
Ahmed bin Sultan Al Qasimi, Deputy Ruler of Sharjah
Khalid bin Saqr Al Qasimi, Deputy Ruler of Ra's al-Khaimah
Sultan bin Saqr Al Qasimi, Deputy Ruler of Ra's al-Khaimah
Hamad bin Saif Al Sharqi, Deputy Ruler of Fujairah

The Federal Supreme Council is vested with legislative as well as executive

powers. It ratifies federal laws and decrees, plans general policy, approves
the nomination of the Prime Minister and accepts his resignation. It also
relieves him from his post upon the recommendation of the President. The
Supreme Council elects the President and his deputy for five-year terms;
both may be re-elected.
The Council of Ministers or Cabinet, described in the Constitution as the
executive authority for the Federation, includes the usual complement of
ministerial portfolios and is headed by a Prime Minister, chosen by the
President in consultation with his colleagues on the Supreme Council. The

Prime Minister, currently the Vice-President (although this has not always
been the case), then selects the ministers, who may be drawn from any of
the Federations component emirates, although, naturally, the more
populous emirates have generally provided more members of each Cabinet.
Return to top / Return to Government main index
Members of the Cabinet
Prime Minister: H.H. Sheikh Mohammed bin Rashid Al Maktoum
Deputy Prime Minister: Sheikh Sultan bin Zayed Al Nahyan
Deputy Prime Minister: Sheikh Hamdan bin Zayed Al Nahyan
Minister of Defence: H.H. Sheikh Mohammed bin Rashid al Maktoum
Minister of Finance and Industry: Sheikh Hamdan bin Rashid Al Maktoum
Minister of Interior: Lt. General Sheikh Saif bin Zayed Al Nahyan
Minister of Presidential Affairs: Sheikh Mansour bin Zayed Al Nahyan
Foreign Minister: Sheikh Abdullah bin Zayed Al Nahyan
Minister of Higher Education and Scientific Research: Sheikh Nahyan bin
Mubarak Al Nahyan
Minister of Public Works: Sheikh Hamdan bin Mubarak Al Nahyan
Minister of Economy: Sheikha Lubna bint Khalid Al Qasimi
Minister of Justice: Mohammed bin Nakhira Al Dhaheri
Minister of State for Financial and Industrial Affairs: Dr Mohammed Khalfan
bin Kharbash
Minister of Energy: Mohammed bin Dhaen Al Hameli
Minister of Labour: Dr Ali bin Abdullah Al Ka'abi
Minister of Governmental Sector Development: Sultan bin Saeed Al Mansouri
Minister of State for Cabinet Affairs: Mohammed Abdullah Al Gargawi
Minister of State for Foreign Affairs: Mohammed Hussein Al Shaali
Minister of Social Affairs: Mariam Mohammed Khalfan Al Roumi
Minister of Education: Dr Hanif Hassan Ali
Minister of State for FNC Affairs: Dr Anwar Mohammed Gargash
Minister of Health: Humaid Mohammed Obeid Al Qattami
Minister of Environment and Water: Dr Mohammed Saeed Al Kindi
Minister of Culture, Youth and Community Development: Abdul Rahman
Mohammed Al Owais
Return to top / Return to Government main index
FEDERAL NATIONAL COUNCIL
The Federal National Council (FNC) has 40 members drawn from the

emirates on the basis of their population, with eight for each of Abu Dhabi
and Dubai, six each for Sharjah and Ras al-Khaimah, and four each for
Fujairah, Umm al-Qaiwain and Ajman. The election of representative
members is left to the discretion of each emirate, and the members
legislative term is deemed to be two calendar years.
Day-to-day operation of the FNC is governed by standing orders based on
the provisions of Article 85 of the Constitution. These orders were first
issued in 1972 and subsequently amended by Federal Decree No. 97 of
1977.
The FNC plays an important role in serving the people and the nation and
consolidating the principles of shura (consultation) in the country. Presided
over by a speaker, or either of two deputy speakers, elected from amongst
its members, the FNC has both a legislative and supervisory role under the
Constitution. This means that it is responsible for examining and, if it so
requires, amending, all proposed federal legislation, and is empowered to
summon and to question any federal minister regarding ministry
performance. One of the main duties of the FNC is to discuss the annual
budget. Specialised sub-committees and a Research and Studies Unit have
been formed to assist FNC members to cope with the increasing demands of
modern government.
Since its inception the Council has been successively chaired by the following
Speakers:
Thani bin Abdulla
Taryam bin Omran Taryam
Hilal bin Ahmed bin Lootah
Al-Haj bin Abdullah Al Muhairbi
Mohammed Khalifa Al Habtoor
Saeed Mohammed Al Kindi (elected 2003)
At an international level, the FNC is a member of the International
Parliamentary Union (IPU) as well as the Arab Parliamentary Union (APU)
and participates actively in these bodies.
Return to top / Return to Government main index
FEDERAL JUDICIARY
The federal judiciary, whose total independence is guaranteed under the
Constitution, includes the Federal Supreme Court and Courts of First
Instance. The Federal Supreme Court consists of five judges appointed by

the Supreme Council of Rulers. The judges decide on the constitutionality of

federal laws and arbitrate on inter-emirate disputes and disputes between
the Federal Government and the emirates.
Return to top / Return to Government main index
LOCAL GOVERNMENT

Parallel to, and, on occasion, interlocking with, the federal institutions, each
of the seven emirates also has its own local government. Although all have
expanded significantly as a result of the countrys growth over the last
34 years, these differ in size and complexity from emirate to emirate,
depending on a variety of factors such as population, area, and degree of
development.
Thus the largest and most populous emirate, Abu Dhabi, has its own central
governing organ, the Executive Council, chaired by the Crown Prince, Sheikh
Mohammed bin Zayed Al Nahyan, the heir apparent. This was restructured in
late 2004, following the accession of President HH Sheikh Khalifa bin Zayed
Al Nahyan as Ruler of Abu Dhabi, with the amalgamation of several
previously-existing departments, while the subsidiary local departments that
formerly existed in the emirates Eastern and Western Regions were also
absorbed into the central departments. The two regions continue to have
Rulers Representatives, and there is also a Rulers Representative on
the important oil terminal island of Das. The main cities, Abu Dhabi and Al
Ain, the latter also the capital of the Eastern Region, are administered by
municipalities, each of which has a nominated municipal council, these both
coming under the new Department of Municipalities and Agriculture. Abu
Dhabis National Consultative Council, chaired by a Speaker, and with 60
members selected from among the emirates main tribes and families,
undertakes a role similar to that of the FNC on a country-wide level,
questioning officials and examining and endorsing local legislation. It is also
a source of vocal suggestion for the introduction or revision of federal
legislation. Administration in the emirate is implemented by the local
departments coming under the Executive Council, a number of local
departments, covering areas such as finance, economy, civil aviation, ports
and municipalities and agriculture (incorporating the former department of
public works and the former Al Ain forestry department), with the business
of the Council being managed by a secretary-general.
A similar pattern of municipalities and departments can be found in each of
the other emirates, while Sharjah, which has three enclaves on the
countrys East Coast, has also adopted the practice of devolving some
authority on a local basis, with branches of the Sharjah Emiri Diwan (Court),

headed by deputy chairmen, in both Kalba and Khor Fakkan. Sharjah has
also created an Executive Council and a Consultative Council to cover the
whole emirate.
In smaller or more remote settlements, the ruler and government of each
emirate may choose a local representative to act as a conduit through which
the concerns of inhabitants may be directed to government. In most cases,
these are the leading local tribal figures, whose influence and authority
derive both from their fellow tribesmen and from the confidence placed in
them by the ruler, an example of the way in which local leaders within the
traditional system have become involved with, and lend legitimacy to, the
new structures of government.
Return to top / Return to Government main index
FEDERAL AND LOCAL GOVERNMENT
The powers of the various federal institutions and their relationship with the
separate institutions in each emirate, laid down in the Constitution, have
evolved and changed since the establishment of the state. Under the terms
of the Constitution, rulers may, if they wish, relinquish certain areas of
authority, prescribed as being the responsibility of individual emirates, to the
Federal Government, one significant such decision being that to unify the
armed forces in the mid-1970s. The 1971 Constitution also permitted each
emirate to retain, or to take up, membership in the Organisation of
Petroleum Exporting Countries (OPEC) and the Organisation of Arab
Petroleum Exporting Countries (OAPEC), although none have done so; the
only emirate to be a member in 1971, Abu Dhabi, having chosen to
relinquish its memberships in favour of the Federation.
In line with the dramatic social and economic development that has taken
place since the foundation of the state, the organs of government, both
federal and local, have also developed impressively, and their influence now
affects almost all aspects of life, for both UAE citizens and expatriates. As
with other relatively young states, new institutions that were created for the
first time have derived their legitimacy and status from the extent of their
activities and achievements, and from acknowledgement and appreciation of
their role by the people.
The relationship between the new systems of government, federal and local,
has itself evolved in a highly constructive manner. As the smaller emirates
have benefited from significant development in terms of, for example,
education and vocational training, so they have been able to provide from
their own local governments the personnel to extend the variety of services

(e.g. tourism) which had once been handled on their behalf by federal
institutions. At the same time, in other areas, such as the judiciary, there
has been an evolving trend towards a further voluntary relinquishment of
local authority to the federal institutions. These new systems of government
have not, however, replaced the traditional forms which coexist and evolve
alongside them.
Return to top / Return to Government main index
TRADITIONAL GOVERNMENT
Traditionally, the ruler of an emirate, the sheikh, was the leader of the most
powerful, though not necessarily the most populous, tribe, while each
individual tribe, and often its various sub-sections, also generally had a chief
or sheikh. Such rulers and chiefs maintained their authority only insofar as
they were able to retain the loyalty and support of their people, in essence a
form of direct democracy, though without the paraphernalia of western forms
of suffrage. Part of that democracy was the unwritten but strong principle
that the people should have free access to their sheikh, and that he should
hold a frequent and open majlis, or council, in which his fellow tribesmen
could voice their opinions.
Such a direct democracy, which may be ideally suited to small and relatively
uncomplicated societies, becomes steadily more difficult to maintain as
populations grow, while the increasing sophistication of government
administration means that on a day-to-day basis many of the inhabitants of
the emirates now find it more appropriate to deal directly with these
institutions on most matters, rather than to seek to meet personally with
their ruler or sheikh.
Nevertheless, a fascinating aspect of life in the UAE today, and one that is
essential to an understanding of its political system, is the way in which the
institution of the majlis has continued to maintain its relevance. In larger
emirates, not only the ruler, but also a number of other senior members of
his family, continue to hold open majlises (or majalis), in which participants
may raise a wide range of topics, from a request for a piece of land, or a
scholarship for a son or daughter to go abroad, to more weighty subjects
such as the impact of large-scale foreign immigration upon society or
complaints about perceived flaws in the practices of various ministries and
departments.
In smaller emirates, the majlis of the ruler himself, or of the crown prince or
deputy ruler, remains the main focus. The Ruler of Fujairah, for example,
holds an open majlis at least once a week (daily during the Muslim holy

fasting month of Ramadan), which may be attended by both citizens and

expatriates. To these majlises come traditionally-minded tribesmen who may
have waited several months for the opportunity to discuss with their ruler
directly, rather than choose to pursue their requests or complaints through a
modern governmental structure.
Just as the modern institutions have developed in response to public need
and demand, however, so the traditional forms of tribal administration have
adapted. With many relatively routine matters now being dealt with by the
modern institutions, traditional institutions, like the majlis, have been able to
focus on more complex issues rather than on the routine matters with which
they were once heavily involved.
In the majlises, for example, it is possible to hear detailed, and often
heated, discussions between sheikhs and other citizens on questions such as
the policy that should be adopted towards the evolution of the machinery of
government, or the nature of relations with neighbouring countries. On
matters more directly affecting the individual, such as the highly relevant
topic of unemployment among young UAE graduates, debates often tend to
begin in the majlises, where discussion can be fast and furious, before a
consensus approach evolves that is subsequently reflected in changes in
government policy.
Through such means, the well-tested traditional methods of government in
the United Arab Emirates have been able to retain both their essential
relevance and unique vitality, and they continue to play an important,
although often unpublicised, role in the evolution of the state today.
Return to top / Return to Government main index
A BALANCED APPROACH
When the rulers of the seven emirates met 34 years ago to agree on the
forms of government for their new federal state, they deliberately chose not
simply to copy from others. They chose, instead, to work towards a society
that would offer the best of modern administration, while at the same time
retaining the traditional forms of government, that, with their inherent
commitment to consensus, discussion and direct democracy, offered the best
features of the past.
With the benefit of hindsight, it is evident that they made the correct choice,
for, despite the massive economic growth and the huge increase in
population, the state has enjoyed political stability. During the last few
decades there have been numerous attempts to create federal states, both

in the Arab world and elsewhere. The UAE is the only one in the Arab world
to have stood the test of time, proof of that being the smooth transition that
occurred, in Government and throughout the country, following the death of
the Federations founder, Sheikh Zayed bin Sultan Al Nahyan, in late
2004.
The foreign policy of the United Arab Emirates is based upon a set of guiding
principles, laid down by the country's first President, Sheikh Zayed bin
Sultan Al Nahyan. He derived these from his deep belief in the need for
justice in international dealings between states, including the necessity of
adhering to the principle of non-interference in the internal affairs of others
and the pursuit, wherever possible, of peaceful resolutions of disputes,
together with a support for international institutions, such as the United
Nations. Only thus, he believed, could the rights of the weak and powerless
be defended. In developing this approach, he brought into play his own
experiences on the need for collaboration and consultation, gained during his
involvement in the governance of the Emirate of Abu Dhabi and in the
bringing together of the seven emirates into the Federation of the UAE.
Within the Arabian Gulf region, and in the broader Arab world, the UAE has
sought to enhance cooperation and to resolve disagreement through a calm
pursuit of dialogue. Thus one of the central features of the country's foreign
policy has been the development of closer ties with its neighbours in the
Arabian Peninsula. The Arab Gulf Cooperation Council (AGCC), grouping the
UAE, Kuwait, Saudi Arabia, Bahrain, Qatar and Oman, was founded at a
summit conference held in Abu Dhabi in May 1981, and has since become,
with strong UAE support, an effective and widely-respected grouping.
At the broader level of the Arab world as a whole, Sheikh Zayed was
committed to the re-building of a sense of common purpose amongst both
its people and its governments. He supported, therefore, the strengthening
of common institutions, like the League of Arab States, while recognising
that the achievement of progress required not a fruitless search for
unanimity but, rather, working to achieve a consensus on key issues.
A key feature of UAE policy within the Arab world has been a consistent
support for the rights of the Palestinian people to recover their land and to
establish their own state, with Jerusalem as its capital, within the context of
a just and lasting peace agreement with Israel. That support has been
unstinting, while, at the same time, the UAE has always emphasised that it
is for the Palestinians themselves to choose how best to pursue their
objectives.

While seeking to promote consensus and reconciliation between Arab states

on key issues, the UAE has also made it plain, throughout its existence, that
there are certain basic principles which must be maintained. One is that of
the need for states to maintain relations based upon mutual respect and a
lack of interference in the affairs of others, while another has been the
inadmissibility of territorial gain based upon force. Thus not only has the UAE
rejected Israeli claims to occupied Palestinian territories, but it also
supported its Gulf sister state of Kuwait when the latter was invaded and
occupied by Iraq in 19901991.
The UAE itself has foreign policy issues related to its territorial integrity.
Since 1971, the three Gulf islands of Abu Musa and Greater and Lesser Tunb
have been occupied by Iran. While holding fast to its demand that the
islands should be returned, the UAE, in accordance with the policy laid down
by Sheikh Zayed, has always adopted a policy of seeking to resolve the
dispute by peaceful means, whether through meaningful bilateral
negotiations, or through reference to the International Court of Justice, or
through international arbitration. Sadly, no progress was made on this issue
during the course of 2005.
Another territorial issue to receive attention during 2005 was that of the
UAE's borders with Saudi Arabia. In June, the UAE publicly stated, for the
first time, its position, dating back 30 years, that there should be a review of
the need for amendments to the 1974 provisional agreement signed
between the two countries, but not formally ratified. Following a visit to the
UAE by the Saudi Minister of Interior to Abu Dhabi in June, Sheikh Hamdan
bin Zayed Al Nahyan, the UAE Deputy Premier and Minister of State for
Foreign Affairs, noted that 'a brotherly, frank and transparent dialogue on
certain boundary issues' had taken place. 'The UAE said that some parts of
the 1974 boundary agreement can no longer be implemented. The UAE,
therefore, presented fundamental amendments to these parts of the
agreement . . . The (UAE's) stance in this respect is not new, since the UAE
has been expressing the same position since 1975,' he said.
A negotiated solution to the issue, which concerns mainly the southern
border, close to the UAE's Zarrara oilfield, and the Khor al-Odaid area, in the
west, is being actively sought.
Return to top / Return to Government main index
During the course of the year, however, the UAE and Oman formally signed
maps delineating the borders between the two countries from Umm az-

Zamul, in the south, northwards to east Eqaidat. The original agreement on

the borders was signed in 1999.
Beyond the Arab world, the United Arab Emirates has pursued a policy of
seeking, wherever possible, to build friendly relations with other nations,
both in the developing and in the industrialised world. While this policy is
implemented at a bilateral level, another important feature of UAE policy has
been its support for international bodies, like the United Nations and its
various agencies. Through its support for such bodies, it seeks to reinforce
the rule of international law, and to support the implementation of
internationally agreed conventions, so as to protect the interests of the
small, the weak and the powerless.
The UAE has shown its support for legitimate multilateral action not only
through its extensive programme of support for the UN and its agencies, but
also by supporting peacekeeping operations, such as UNISOM II in Somalia
and the international force sent to protect the Muslims of Kosovo in the late
1990s, the UAE being the only Arab and Muslim country to take part in the
latter.
Characterised by prudence, a support for conciliation and consensus, as well
as for international institutions, yet also by a readiness, if necessary, to
support the use of force to defend the rights of the weak, UAE foreign policy
in the years since the state was established has also been noteworthy for its
consistency, thanks to the fact that the architect of the policy, Sheikh Zayed,
continued throughout to guide its implementation until late 2004.
During 2005, under the leadership of President HH Sheikh Khalifa bin Zayed
Al Nahyan, that policy has remained unaltered. Many of the key issues have
remained the same as in previous years and, in particular the UAE has
focused attention on continuing problems in the region, such as those
affecting Iraq, the people of Palestine and Afghanistan. The UAE has also
continued to work with other countries, both within the region and from
outside, to fight the continuing scourge of terrorism.
In the immediate area of the Arabian Gulf, the development of relations
between the six member states of the Arab Gulf Cooperation Council (AGCC)
has been one focus of activity during the course of the past year. This is seen
by President HH Sheikh Khalifa as being a fundamental element in the UAE's
foreign policy
'I strongly believe that the Gulf region is one entity and one area,' he has
said. 'Unity is strength. It is my hope that we would be able to forge a
greater union or federation, across the Gulf, not just in the UAE, and the

success of our federation in the UAE is a cause for hope. Unity is a conviction
and a belief.'
Return to top / Return to Government main index
Sheikh Khalifa visited Qatar at the end of 2004 for discussions on the
burgeoning links between the two states, which include the Dolphin pipeline
project that will bring gas from Qatar's North field to the UAE, and the
planned causeway and bridge that will run from the UAE's Sila'a peninsula to
Qatar.
The President also visited Saudi Arabia in July, to pay condolences to King
Abdullah bin Abdul Aziz on the death of his brother and predecessor, King
Fahd, and, earlier in the year, following his election as UAE President, also
visited Kuwait, Bahrain and Oman.
The UAE continued to express its support for the Palestinians and for efforts
designed to revitalise the peace process. Besides providing diplomatic and
other support to the Palestine National Authority, under its new leader,
Mahmoud Abbas (Abu Mazen), the UAE also extended substantial aid in the
form of the funding of new housing and other projects (see Foreign Aid).
One of these, announced in July, was a plan for a Sheikh Khalifa City to be
built in Gaza, on land occupied by illegal Israeli settlements until these were
abandoned in the second half of the year as part of a planned, partial Israeli
withdrawal.
Throughout the year, the United Arab Emirates continued to extend all
possible support to the international fight against terrorism, while
emphasising the necessity both of a clear definition of terrorism and of
ensuring that terrorism perpetrated by states should not be overlooked.
The scourge of terrorism has continued during 2005 to pose an important
challenge to the international community, both within the region and further
afield. The UAE has supported efforts by the Government of Iraq to
overcome the terrorists who have been indiscriminately targeting
government officials and civilians, including women and children. It also
expressed its condemnation of the murder of foreign diplomats in Iraq. The
UAE continues to offer its assistance to the Iraqi Government and people to
rebuild their state and society, urging all communities within the country to
work together in such a way as to restore internal stability and to facilitate
Iraq's full return to the community of nations

Terrorism, of course, has not been confined to Iraq over the course of the
last year, and the UAE has also expressed its full condemnation of terrorist
attacks that have occurred elsewhere, such as those which took place in
Kuwait in January, in Qatar in March, and in July in the Egyptian resort of
Sharm el-Sheikh and in the British capital, London. In a statement on the
London explosions on 7 July, Sheikh Hamdan bin Zayed, Deputy Prime
Minister and Minister of State for Foreign Affairs, noted that 'the UAE
condemns in the strongest possible terms these horrific crimes, (and)
expresses its full support for the British government and for all measures it
may take to deal with these crimes.
In keeping with its belief that all nations should work together to eradicate
the scourge of terrorism, including those who facilitate and fund it, UAE
Minister of Interior Lt General Sheikh Saif bin Zayed Al Nahyan, followed up
Sheikh Hamdan's remarks with an offer to provide any possible help to the
British authorities in trying to track down those responsible.
The UAE also condemned the two individual murders that occurred in
Lebanon during the year, of former Prime Minister Rafiq Hariri and of
politician and journalist Samir Qaseer.
In June, the Cabinet approved the UAE's adhesion to the International
Convention on the Suppression of Terrorism and the International
Convention on the Suppression of Acts of Nuclear Terrorism, while the UAE
Central Bank continued to work closely with other Central Banks and
financial institutions to crack down on any financial transactions believed to
be related to possible financing of terrorism.
In more general terms, the UAE has continued throughout the year to work
on building bilateral relations with countries throughout the world, and there
was the usual steady flow of high-ranking visitors from other countries to the
Emirates.
In June, the Cabinet approved the UAE's adhesion to the International
Convention on the Suppression of Terrorism and the International
Convention on the Suppression of Acts of Nuclear Terrorism, while the UAE
Central Bank continued to work closely with other Central Banks and
financial institutions to crack down on any financial transactions believed to
be related to possible financing of terrorism.
In more general terms, the UAE has continued throughout the year to work
on building bilateral relations with countries throughout the world, and there
was the usual steady flow of high-ranking visitors from other countries to the
Emirates.

Return to top / Return to Government main index

An important visitor in March was the German Chancellor, Gerhard
Schroeder, who described the UAE as an 'anchor of stability' in the region. A
number of major commercial agreements were signed during the visit,
covering the defence, power, transport and other sectors.
Another important visit, in July, was by Australia's Prime Minister, John
Howard. In recent years, bilateral relations between the UAE and Australia
have been developing rapidly. These are not only in the sphere of trade and
investment, where the recent conclusion of a free-trade agreement is
expected to provide further stimulus, but in other areas as well, like tourism
and the number of UAE students undertaking courses in Australian
universities. Other links are developing in the oil industry, with Australia's
largest oil company, Woodside, partnering Abu Dhabi's Liwa Energy in
exploration in Libya.
Another important development in terms of the country's foreign trade
relations was the initiation, early in 2005, of negotiations with the United
States on the conclusion of a free-trade agreement. Similar agreements
have already been signed by a number of other member countries of the
Gulf Cooperation Council and, when completed, the UAEUSA agreement
will facilitate an increased inflow of US investment into the UAE economy.
Other governmental visitors to the UAE included senior officials from the
United States, Britain, China, Canada, Spain, the Ukraine, Pakistan, China,
Singapore, South Africa, Tanzania and the Seychelles, as well as a number of
top Arab officials, including the heads of state of Qatar, Bahrain, Jordan and
Morocco.
Besides the visits by President Sheikh Khalifa to the other member states of
the GCC, UAE officials also made a number of important visits overseas,
designed to promote political, economic and defence relationships. Two such
visits were made by delegations headed by Sheikh Mohammed bin Zayed Al
Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the
Armed Forces, to Pakistan, for talks with President Musharraf, to France, for
talks with President Chirac, and to Egypt, for talks with President Mubarak.
The UAE also took part in the Arab summit in Algeria in March, its delegation
being led by Fujairah Ruler and Supreme Council member Sheikh Hamad bin
Mohammed Al Sharqi.

The country was represented at the funeral of Pope John Paul in Rome and
at that of former Lebanese Prime Minister Rafiq Hariri by Minister of
Information and Culture Sheikh Abdullah bin Zayed Al Nahyan.
Building relations between the UAE and other countries is not, of course,
simply a matter for discussions and an exchange of visits between
governments. Parliamentarians and others also have a key role to play. In
June, a large delegation of parliamentarians from the North Atlantic Treaty
Organisation (NATO) visited the Emirates at the invitation of Sheikh
Mohammed bin Zayed Al Nahyan. Made up of members of the NATO
Assembly's Defence Committee, the delegation was the first of its kind to
visit the Emirates. Members were briefed on the UAE's defence policy and
other issues.
As noted at the beginning of this section of the Yearbook, the UAE has
always sought, since its establishment, to work with and to support the
United Nations and its specialised agencies. During 2005, the Ministries of
Foreign Affairs and Interior worked closely with the United Nations Children's
Fund (UNICEF) on the repatriation of several hundred young children who
had formerly been working as camel jockeys in the Emirates.
The use of children, from South Asia, North-East Africa and Mauritania, as
camel jockeys, had long been common in the Emirates, but there had been
rising concern in recent years about the treatment of the children. It had
become apparent, for example, that their parents had, in many cases, been
tricked by traffickers, while some had even been kidnapped in their home
countries. In accordance with UAE legislation and with the provisions of
international convention signed by the UAE, it was, therefore, decided that
the use of children under the age of 18 as camel jockeys was to be banned.
The federal law on the topic was signed by President Sheikh Khalifa in July.
Prior to that, the Ministry of Interior had already signed an agreement with
UNICEF to help in the collection of the children from their employers and in
their repatriation.
In a comment on the agreement, June Kunuji, the UNICEF representative in
the Gulf Region, said: 'We at UNICEF are pleased to have entered into a
partnership agreement with the Government of the United Arab Emirates,
and would like to commend them for making the commitment to provide
support to the children formerly involved in camel racing, including for their
protection, recovery, rehabilitation and reintegration into their families and
communities.' By September 2005, well over 2000 children had been taken
into care by the Ministry of Interior and UNICEF, with most of them being
sent back to their countries of origin.

Another indication of the UAE's support for international law and the various
international agencies was the decision, early in the year, to ratify the Kyoto
Protocol to the United Nations Convention on Climate Change, becoming one
of the first major oil-producing countries to do so. The Kyoto Protocol lays
down targets for the reduction of atmospheric emissions that may contribute
to climate change, and implementation of its targets is likely to be a costly
exercise for oil producers. In line with its commitment to protection of the
environment, however, the UAE is determined to do all that it can to
implement the terms of the protocol. It is also a member of the working
group reviewing Article 4 of the framework convention, and is the Asian
representative in the Kyoto Protocol Executive Office.
DEVELOPMENT AID
Since the establishment of the United Arab Emirates, the country has played
an active role in the provision of financial aid to developing countries and
has been a major contributor of emergency relief to countries and areas
affected by conflict and natural disasters. This process began with the
creation of the main governmental aid-giving agency, the Abu Dhabi Fund
for Development (ADFD) in mid-1971, before the UAE itself was created.
The philosophy behind the aid policy is two-fold - first, the provision of help
for the needy is a duty incumbent on all Muslims and, second, the country's
policy on utilisation of the revenues from its oil and gas production has
always included a component that they should be devoted, in part, to
helping other countries, whether Arab, African or Asian, which have been
less well-endowed.
The philosophy was well-described by former UAE President Sheikh Zayed
bin Sultan Al Nahyan in his statement on the occasion of the 2003 UAE
National Day.
Foreign aid and assistance is one of the basic pillars of our foreign policy.
For we believe that there is no true benefit for us from the wealth that we
have unless it does not also reach those in need, wherever they may be,
and regardless of their nationality or beliefs. That is why we have ensured
that our brothers and our friends have shared in our wealth.
One major focus in late 2004 and in early 2005 was the provision of
emergency relief for those countries around the Indian Ocean that were hit
by the devastating earthquakes and tsunamis that occurred in late
December, and in which over 200,000 people were estimated to have lost
their lives, with millions being made homeless.

With many UAE residents coming from some of the countries that were
worst hit, including Indonesia, Sri Lanka and India, support for the relief
efforts came not just from the Government and from humanitarian agencies,
but from companies and individuals as well.
First to swing into action was the UAE Red Crescent Authority, which, on
the instructions of President HH Sheikh Khalifa, started to send money and
relief supplies, as well as rescue and medical teams, within a day of the
disaster taking place. Overall, the authority spent over Dh45 million of its
own resources in its rapid-response activities, many of these being facilitated
by the UAE Armed Forces, who, on Government directions, supplied cargo
planes to fly relief supplies to the areas that had been worst-affected. The
authority also raised many millions more from the public to supplement its
own funds, while the Government also made cash donations, including
US$20 million (nearly Dh75 million) in the first few days, followed by further
donations, channelled through host governments and aid agencies, as Red
Crescent Authority teams reported back on the scale of the disaster
Almost all sectors of UAE society contributed to the provision of relief
assistance. Prominent amongst the aid-givers were, of course, humanitarian
bodies like the Mohammed bin Rashid Charity and Humanitarian
Foundation, the Zayed Charitable and Humanitarian Foundation and
the Umm al-Qaiwain Charity Organisation, these bodies often working in
close coordination with the Red Crescent. Others who contributed help on
the ground and in shipping relief aid included Emirates airline, who sent
teams to help airports in the stricken areas to cope with extra traffic and
freight and provided free cargo space, both for locally-provided aid and for
supplies coming from Europe.
Local companies made substantial donations, both in cash, like the National
Bank of Abu Dhabi, which gave Dh5 million, and Borouge, part of the ADNOC
Group, and in kind, like Etihad Airways, Julphar Pharmaceuticals, who
donated medicines, Masafi Mineral Water, who donated bottled water, and
the Abu Dhabi National Oil Company, which shipped two mobile petrol filling
stations. Ordinary individuals took part in special events to raise money, like
the staff and students of the Abu Dhabi Women's College, the Abu Dhabi
University, workers in the Bu Hasa oilfield and other bodies. And, with the
immediate impact of the disaster over, UAE institutions also helped in the
important process of reconstruction, the Sharjah Welfare Organisation, for
example, undertaking the task of rebuilding a village in Sri Lanka.
In this task of reconstruction, the Red Crescent Authority is, once again,
playing a major role. One project, in Sri Lanka, is the construction of a
Sheikh Khalifa City to house peoples whose homes were destroyed in the

tsunami. With 400 housing units, a school, a health centre and a mosque,
the project, being carried out in association with the United Nations
Development Programme, will help hundreds of families to make a new start
in life.
A prominent part in the relief effort was played by the recently-established
Dubai Humanitarian City, an initiative of the Dubai government that has
provided international relief agencies with administrative, storage and
logistics facilities from which they can manage their activities throughout the
region.
Another response to a disaster arising out of natural causes came in early
September, when the American city of New Orleans, and an area of the
southern United States as large as Britain was devastated by Hurricane
Katrina. Once again, the Red Crescent Authority offered support, such as
flying in emergency relief supplies.
The provision of aid, however, is not confined simply to responding to natural
disasters. There is also a long-term focus on tackling poverty and
deprivation, both through a programme of government-to-government loans
and grants, and through other channels.
Thus in May 2005, the Zayed Charitable and Humanitarian Foundation
signed an agreement with the United Nations Development Programme
(UNDP) to provide Dh5.5 million to fund the drilling of water wells in
drought-stricken Niger. The agreement is part of a programme that will see
the foundation spend a total of Dh55 million drilling water wells in ten
African countries, also including Sudan and Somalia. Among other projects
being supported by the foundation is the Sheikh Zayed Regional Eye
Centre in the West African state of The Gambia, being built in association
with London-based Sightsavers International. This will provide training in
ophthalmology to students from throughout the region.
The UAE Red Crescent Authority is another body that is active much more
widely than in simple disaster relief, although this is an important aspect of
its operations. In April 2005, the foundation stone was laid for another new
RCA project, the Sheikh Zayed bin Sultan Al Nahyan City, in Kabul,
Afghanistan. Being built on the instructions of UAE President HH Sheikh
Khalifa bin Zayed Al Nahyan, the City is intended to provide basic needs for
thousands of displaced Afghans. The authority is also supervising the
construction of a new university in the Afghan city of Khost and other health
and water-supply projects, part of efforts to help Afghanistan develop its
infrastructure.

Overall, the Red Crescent Authority had spent over Dh106 million on relief
projects by the end of the first half of 2005. While much went on tsunamirelated work, the authority was also active in many other countries,
including Iraq and Palestine, helping those affected by conflict; in Pakistan,
on flood relief; in Iran, helping those affected by earthquakes; and in Africa.
This expenditure complemented a further Dh211 million spent on projects in
some 30 countries during 2004.
In terms of reconstruction, though, the largest UAE initiative during the last
year was the announcement in July, that it would fund a US$100 million
project to construct homes for 30,000 to 40,000 Palestinians in the Gaza
Strip, to replace the Israeli settlements being abandoned as part of the
withdrawal of Israeli forces from Gaza. The project, being carried out on the
orders of President Sheikh Khalifa bin Zayed, will be undertaken in
association with the United Nations Relief Works Agency (UNRWA) and the
Palestine National Authority.
It complements three other major UAE-funded initiatives in Gaza and the
West Bank, the Sheikh Zayed City in North Gaza, which was formally
inaugurated in May 2005, the reconstruction of the Jenin refugee camp,
destroyed by Israeli forces, and a new township in Rafah.
The Abu Dhabi Fund for Development (ADFD), which was established in
1971, also continued its activities during 2005, making two new loans, one
to Jordan, for Dh29.3 million, for the construction of a paediatric hospital in
Amman, and one to Lebanon, for Dh110 million, to finance three water and
drainage projects.
Overall the fund has now given nearly Dh20 billion in form of development
loans, assistance and grants, with a total of 56 countries benefiting from its
activities, through nearly 250 individual projects, these often being financed
in association with other international and national aid-giving agencies.
Financial assistance provided directly by the Abu Dhabi government is also
managed by the fund. The bulk of the assistance has been given to support
the development of infrastructure. These include roads, airports, seaports,
water, electricity, agriculture, communications and housing. While assistance
has also been given to improve health and educational services and generate
employment opportunities.
The financial assistance is made available in the form of concessionary loans,
grants and direct investments offered with a low rate of interest, lengthy
period of repayment and a long grace period. A typical loan is repayable in 8
to 20 years and carries an interest rate at 3 to 6 per cent with a grace period
of three to eight years.

In addition to financial grants and easy-term loans, the ADFD also makes
direct investments in private-sector projects. Beneficiaries of the direct
investment projects include Egypt, Morocco, Syria, Jordan, Oman, Tunisia,
Algeria, Palestine, Bahrain, Yemen, Lebanon, Sudan, Somalia, Mauritania
and Djibouti. Operations in these countries covered agriculture, dams,
animal wealth, fisheries, social services, power and water, communications,
transport, tourism and health. The food production sector is given a top
priority. The fund also gives special attention to projects like tourism that
carry higher potential rate of return, create job opportunities and generate
hard currency.
The Government of the United Arab Emirates is also an active participant of
a number of multi-lateral aid-giving institutions, including the World Bank,
the International Monetary Fund (IMF), the International Development
Agency (IDA), and regional bodies like the OPEC Fund for International
Development, the Arab Gulf Fund for the UN (AGFUND), the Arab Bank for
Economic Development in Africa (BADEA), the Abu Dhabi-based Arab
Monetary Fund (AMF) and the Islamic Development Bank (IDB).

DONALD TRUMP: THE ULTIMATE DUBAI ENDORSEMENT?

News that Donald Trump is to enter the Dubai real estate market with a landmark
hotel project in the centre of The Palm, Jumeirah marks a new step in the creation
of Arabia's international city. For Dubai is now the epicenter of the oil boom in
the Middle East.
United Arab Emirates: Thursday, October 06 - 2005 at 09:14

Nowhere in the Middle East will be more transformed by the oil boom
of the early 21st century than Dubai. And the arrival of US billionaire
and self-publicist Donald Trump is exactly the kind of international
endorsement that this city now merits. Donald Trump once wrote a
book called 'The Art of the Deal' so it is likely that he struck a pretty
tough bargain in Dubai. But when New York's leading property
developer moves into a city this has to be big news; Mr. Trump after all
has made his fortune by being ahead of the game.

So what does he see in Dubai, apart from more self-publicity? But to be fair his
Dubai deal will not be big news in the USA. Surely Mr. Trump is attracted by the high
margins available to hotel owners in Dubai, and the chance to secure a prime piece
of real estate in the world's fastest growing city.
For Dubai residents coping daily with long traffic queues and the nuisance of
constant construction this may not seem such a wonderful thing. But Dubai has now
earned its place on the world stage, and nothing succeeds like success.
It attracts successful people like Donald Trump who then attract others in their turn.
Now at some point this seemingly endless development boom has to take a
breather, if only to allow some of the concrete trucks to reach their construction
sites on time.

Will the boom end?

But calling an end to the Dubai boom has become a bit of a joke among long term expatriates,
some of whom have been waiting for 20 years for things to calm down.

For Dubai is becoming another Singapore or Hong Kong - an international city serving a much
wider and less hospitable region. If you go back in time then Singapore and Hong Kong were
once little more than coastal villages.
The same kind of energy, rampant capitalism and visionary leadership that transformed these
cities is also evident in Dubai. That this coincides with a period when oil money is flowing freely
in the Middle East explains why there is quite such an extraordinary rush of development in
Dubai right now.
Mr. Trump is no fool. He knows real estate goes in cycles, and has suffered badly in previous
slumps. Indeed, when he addressed the 'Leaders in Dubai' event recently Mr. Trump said he did
not expect to be enjoying such fame and fortune in a few years' time.
But Donald Trump has survived the ups and downs of the real estate industry, and so will Dubai.
That is perhaps ultimately why Mr. Trump is happy to invest in this city.

Dubai's Israel ban violates U.S. law

BY MICHAEL McAULIFF
DAILY NEWS WASHINGTON BUREAU

WASHINGTON - The government of Dubai, whose company is taking over operations

in six U.S. ports, enforces a boycott of Israel - a boycott that is illegal under U.S. law.
The law is enforced by the Commerce Department, which is one of the agencies that signed off
on Dubai Ports World taking control of terminals in Manhattan, Newark and four other cities.
The issue was raised in congressional hearings yesterday by Sens. Bill Nelson (D-Fla.) and
Barbara Boxer (D-Calif.), who quizzed DP World Chief Operating Officer Ted Bilkey on
whether Dubai still backs the ban.
"I would imagine it would," answered the clearly uncomfortable exec, who also admitted the
company is 100% owned by Dubai's ruling family.
According to Commerce figures provided by Nelson's office, U.S. ships docking in the United
Arab Emirates were asked 238 times in 2003 and 2004 to certify they had no Israeli goods.
In fact, Israeli passport holders arriving by cruise ship to Dubai are not allowed to disembark.

The State Department could not immediately say last night how it would deal with a company
doing business in the U.S. that backs a ban of Israeli products in apparent violation of U.S. law.
A spokesman said the U.S. is negotiating a new trade deal to end the boycott.
"This is yet another problem that this deal raises," said Sen. Chuck Schumer (D-N.Y.). "The
more you learn the more unanswered questions there are."
Among those questions raised yesterday were why the Coast Guard found DP World's purchase
of P&O, the British company now running the ports, posed no risks after complaining
"intelligence gaps" made a security assessment possible.
Schumer and Sen. Olympia Snowe (R-Maine) also asked about worries other agencies may have
had.
Sources told the Daily News yesterday the Customs Department also may have had questions.
In another hearing, Sen. Hillary Clinton (D-N.Y.) asked Director of National Intelligence John
Negroponte for a full intelligence workup on the UAE before letting DP World do work here.
Negroponte insisted the deal was thoroughly vetted. "We did not see any red flags come up
during the course of our inquiry," he said.
In London, the Eller & Co. stevedoring company of Miami challenged the deal in a court that
must approve the $6.8 million purchase of the British company.
The court, usually seen as a rubber stamp for such deals, put off a decision until tomorrow.

HERE ARE SOME ARTICLES FROM THE CONTROVERSY:

UAE Firm Struggles to Run Ports Against U.S. Opposition

http://www.foxnews.com/story/0,2933,185401,00.html
WASHINGTON Executives at Dubai Ports World are intensifying a public relations effort this
week as lawmakers ratchet up protests against the Bush administration over allowing the United
Arab Emirates-owned firm to run six U.S. ports.
The government in Dubai will lobby port officials along the East Coast, and DP World's chief operating
officer American shipping executive Edward H. Bilkey is expected to travel to Washington this week
for meetings on Capitol Hill and elsewhere.
Michael Seymour, president of the North American arm of Peninsular and Oriental Steam Navigation
(P&O), the company DP World wishes to buy in order to run the six ports, said in a statement that the
London-based P&O "is itself a foreign-owned terminal operator that has long worked with U.S.
government officials in charge of security at the ports to meet all U.S. government standards, as do other
foreign companies that currently operate ports in the United States."
"We are confident that the DP World purchase will ensure that our operations continue to meet all
relevant standards in the U.S. through ongoing collaboration between the port operators and American,
British, Australian and port security officials throughout the world," Seymour said.
Lawmakers are upset that P&O, which runs 100 ports in 19 countries, is being purchased by DP World
with the approval of the U.S. Committee on Foreign Investment in the United States (CFIUS), a 12member panel chaired by Treasury Secretary John Snow and comprised of members of the departments
of State, Defense, Justice, Commerce and Homeland Security.
P&O currently runs commercial operations in the ports of New York, New Jersey, New Orleans, Baltimore,
Philadelphia and Miami.
Some lawmakers are considering legislation to stop the deal. Sens. Robert Menendez, D-N.J., and
Hillary Rodham Clinton, D-N.Y., are sponsoring a bill that would prohibit companies owned or controlled
by foreign governments from running port operations in the United States.
"What people lose sight of in this particular takeover is that this company is owned by the government of
Dubai and, therefore, that brings a whole different dimension to it. I just don't think that the ports of the
nation ... that go uninspected can be subjected to the foreign operation by a government of a foreign
country, especially one that has this history," Menendez told FOX News, adding that the ports in New
Jersey and New York supply 185,000 jobs and $25 billion of economic activity.
Menendez said the U.S. government only has until March 2 to act. That's the deadline for Bush to
overrule CFIUS on the decision.
"We can turn it around if we get the administration to understand this is not in the national security of the
United States. ... So we hope the president will act. And if not, I hope that when the Congress goes back
to session in a week it will act before we ultimately get to the point that this deal goes through," he added.

National Security Danger?

On Sunday, Homeland Security Secretary Michael Chertoff defended CFIUS' review of the international
shipping deal, saying the panel had done due diligence, even thought it had been done in secret with no
congressional oversight.
"We make sure there are assurances in place, in general, sufficient to satisfy us that the deal is
appropriate from a national security standpoint," Chertoff told ABC's "This Week."
That doesn't sit well with Miami firm Continental Stevedoring & Terminals Inc., a subsidiary of Ellery &
Company Inc. On Friday, representatives from that company asked a judge to block the takeover of P&O,
saying that U.S. agencies cannot guarantee DP World will comply with U.S. security rules.
The deal "may endanger the national security of the United States," reads the suit filed late Friday.
It also doesn't jibe with Baltimore Mayor Martin O'Malley, who said Monday that he is going to rally other
mayors in cities affected by the deal to block the transfer of port operations to DP World.
The idea is "reckless, outrageous and irresponsible," O'Malley said, adding that Chertoff was wrong to
suggest that "assurances" are in place to prevent threats to national security.
Rep. Peter King, R-N.Y., chairman of the House Homeland Security Committee, also said he's not certain
the UAE firm will live up to national security rules for running U.S. ports. He added that the rules
themselves are not as specific as they could be, and CFIUS was not as tough as it should have been.
"They didn't do an in-depth investigation. If any of us were nominated to be, let's say, some Cabinet post
in the government, we'd be subjected to incredibly intense scrutiny. Nothing like that happened with this
company," King told FOX News.
King acknowledged that the ports have been run by a foreign company since 2000, when no American
firms bid on the open contract to run the ports.
"As of now there are very few American companies involved" in port operations, he said. "The reality is,
it's very tough to get American companies that actively involved."
"What creates the problem now is that the British company is being taken over by the company from
United Arab Emirates," he added.
DP World is owned by the government of the United Arab Emirates, a loose federation of seven emirates
on the Saudi Arabian peninsula. The State Department calls the UAE an ally in the War on Terror, but
critics note that the Arab nation had ties to the terrorists prior to Sept. 11, 2001, and two of the terrorists,
Marwan al-Shehhi and Fayez al-Hamadi, were born in that country.
Opponents of the deal also argue that the FBI found that the UAE's banking system filtered much of the
money used for the operational planning before the Sept. 11 attacks, and many of the hijackers traveled
to the United States through the UAE. On top of that, the UAE was an important transfer point for
shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist.
"It's unbelievably tone deaf politically at this point in our history," Sen. Lindsay Graham, R-S.C., said on
"FOX News Sunday." "Most Americans are scratching their heads, wondering why this company from this
region now."

Added Sen. Evan Bayh, D-Ind.: "I think we've got to look into this company. We've got to ensure ... the
American people that their national security interests are going to be protected."
But Chertoff said the UAE-owned firm is well-known to the United States. Several top executives in the
agency are American-born.
"We have dealt with this port operator in Dubai for years because many of our port security operations
don't begin when you hit American territory; they actually begin at the port of embarkation. So we don't
write with a clean slate. We have a lot of experience in general with overseas port operations when we
make these decisions," the secretary said.
The two companies involved in the $6.8 billion sale agreed that U.S. government approval is required for
the deal to go through. Chertoff said Congress is welcome to look into the sale in classified briefings.
"Without getting into the specifics of this particular classified discussion, I can tell you that the process is
designed for Congress to be rigorous and to make sure we properly take into the account of security
when we approve any transaction," he said.
Last week, seven lawmakers from both major parties and both chambers of Congress asked the Treasury
to take the additional unused two weeks authorized in its 45-day review period to look more closely at the
agency. The legislators said they are considering other options to expand review of the sale before the
deal is complete.
Rep. Vito Fossella, R-N.Y., said he has asked King to hold hearings on the transaction, and to get CFIUS'
rationale for the decision. A Senate oversight hearing is also planned for later this month.
On Saturday, Rep. Frank LoBiondo, R-N.J., chairman of the House Transportation and Infrastructure
Coast Guard and Maritime Transportation Subcommittee, said he will further monitor the deal to make
sure DP World "complies with all U.S. port security laws and that our nations security is not jeopardized
by this recent business merger.
Sen. Chuck Schumer, one of the seven lawmakers who last week said they were looking into additional
oversight of the sale, appeared Sunday in New York with family members of Sept. 11 terror victims to
protest the sale.
The president "should override the agreement and conduct a special investigation into the matter,"
Schumer said
In Washington, Chertoff said DP World should not be excluded from operating the U.S. ports just because
it is based in the UAE. DP World would not be responsible for cargo screening, which is performed by the
Department of Homeland Security, but the port operator would handle security for cargo coming in and
out of the port and the hiring of security personnel.
DP World has said it intends to "maintain and, where appropriate, enhance current security
arrangements."

DP WORLD
http://www.dpiterminals.com/

13 Febuary 2006
DP World to acquire P&O

We are delighted to announce that the shareholders of P&O

have approved the sale of shares to DP World. At an EGM
held in London this afternoon, the shareholders voted over
99% in favour of the DP World acquisition. This means that
the process of transferring ownership can now begin, and we
expect for this to be confirmed by the court on 2nd March
2006.
Welcome to DP World, a new and dynamic global port operator. DP World is
the result of a merger between two brands recognized for quality, service
and customer satisfaction - Dubai Ports Authority (DPA) and international
arm, DPI Terminals.
Leveraging on combined strengths and expertise, DP World continues to
exceed expectations whilst upholding our existing reputation for efficiency.
We are driven by innovative vision and unyielding commitment to our
customers all around the world.
Step into our world and join us as we continue to be the force that is
changing the industry.
http://www.dpworld.ae/ataglance/chariman_msg.htm
Year 2004 has been an exceptionally good year for the dubai ports for its number of
milestone achievements that have further enhanced its impeccable reputation for
service excellence and enterprise.
Having handled a throughput of 6.42 million TEUs, a growth of 24.6 percent over its
handlings in 2003, Dubai Ports have in 2004, emerged not only the worlds 10 th
largest but also the third fastest growing port.

To complement this unprecedented growth Dubai Ports have also completed the
first phase of its Jebel Ali mega expansion a year ahead of its scheduled completion
in 2005, which has at the 2004 end, enhanced DPAs handling capacity to more
than 7 million TEUs.
To supplement its enhanced capacity Dubai Ports have late in the year taken
delivery of the first four of its 10 giant gantry cranes. These cranes, known for their
speed and flexibility in the container handling are the largest of their kind in the
world. To be installed and operational by 1st week of February 2005 the cranes are
going to substantially enhance Dubai Port handling capacity.
In its global operations, Dubai Ports, having signed an agreement with CSX
Corporation to acquire its international terminal business and related interests for
USD1.15 billion, has become worlds sixth largest global port operator. CSX
international terminal business comprises of 9 terminals with 24 berths across the
world having future combined capacity of 14.6 million TEUs.
The acquisition provides Dubai Ports an access to new growing markets in Asia and
Latin America, which are forecast to offer the highest volume growth in the port
industry. The acquisition also provides Dubai Ports important base in the South East
and Fare East Asia notably in Hong Kong, China and Korea and further facilitates its
global network into Europe, the Americas and Oceania.
Dubai Ports has, in addition to the international acquisition, also recently signed a
memorandum of understanding with Abu Dhabi Sea Port Authority and Ports
Authority of Fujairah to develop joint strategies for both the ports authorities, which
could later result in possible concession for the ports operations and development.
Our achievements and efforts are the manifestation of our commitment to best
serve our valued partners in trade. With the remarkable achievements in 2004
Dubai Ports look forward to even better and challenging 2005 and reiterates its
commitments to service its stakeholders with even better efficiencies.

Sultan Ahmed Bin Sulayem

Executive Chairman
Ports, Customs & Free Zone Corporation

http://portal.pohub.com/portal/page?
_pageid=71,207172&_dad=pogprtl&_schema=POGPRTL
P&O - The Peninsular and Oriental Steam Navigation Company - is one of the world's foremost
developers and operators of container ports. We are also the leading ferry operator in the UK and have
property interests in the US and Europe.
Underpinning our activities is the strength of the P&O brand, recognised worldwide for its expertise,
reliability and commitment to customer service. P&O's strategy is to focus its capital on those
businesses where it is a market leader and which offer strong growth and value creation opportunities.
P&O Ports
P&O Ports is one of the worlds pre-eminent container terminal operators and stevedores, with 29
container terminals and logistics operations in over 100 ports, P&O Ports has a presence in 19
countries across the world. Its main service is containerised cargo handling based on long term
concessions to operate terminals in ports which offer strong growth opportunities. Other services
include: general cargo, bulk cargo, roll on-roll off facilities and cruise passenger terminal
management. The company also provides specialist maritime services to industry and government
as P&O Maritime Services.
P&O Ports is committed to achieving profit growth by increasing scale organically through local trade
growth and market share gain at existing locations, by expanding current capacity, by developing
and acquiring new terminals and by improving the efficiency of its container terminal operations
through sharing best practice.
We expect to allocate approximately 1bn of capital into the Ports business over the next 5 years. At
the end of 2004 our total capacity was over 15m teu*, with expansion rights which could increase this
to 31 million teu.
Container volumes (P&O equity share)

13.8m teu

Capacity available (Jan 05 P&O equity share)

15m teu

Total potential capacity (P&O equity share)

(excludes new project under development)

31m teu

www.poports.com
www.pomaritime.com

P&O Ports is the container terminal operator and stevedore of

choice for many shipping lines and marine consortia.
It is a world leader in cargo handling services and port
management throughout Europe, the United States, South
America, Asia, Africa and Australasia. It is as at home in the
emerging markets as it is in more mature economies. P&O
Ports is headquartered in London.
P&O Ports is a leading global port operator. With 29 container
terminals and logistics operations in over 100 ports it has a
presence in 19 countries.
The company is one of the core businesses of the P&O
Group whose resources, including our talented and dedicated
workforce, and responsive and flexible strategies have
enabled P&O Ports to capitalise on the growth in
containerisation around the world.
Globally, the companys name has become synonymous with
quality and consistency of management and customer
service, all built on the 165-year-old reputation for excellence
in maritime services of the P&O Group.
The companys expansion has been driven by a combination of acquisition and investment. Throughout
the world, we take our own expertise and long experience and meld it with the knowledge provided by our
local partners in individual markets. Rapid growth has made the industry highly competitive and this will
intensify over the coming years. P&O Ports is ideally placed to meet this challenge. We are an
established market leader with a proven track record, able to compete with all comers around the world.
At P&O Ports environmental protection is a fundamental part of the companys operations. Care for the
environment is not a specialist niche but an important daily management task, which is taken seriously.
The company believes in developing a sound environmental management strategy as a cornerstone to its
environmental policy. We are committed to minimising any adverse environmental impacts of our port and
terminal operations and ensuring continual improvement in our environmental performance.
P&O Ports also recognises the increasing role technology plays in the industry and we have devoted
considerable resources to developing and improving our technological systems.
We believe that this combination of expertise, environmental policies and the continued use of advanced
technologies, P&O Ports will be well placed to face the challenges and to seek the opportunities that the

future holds.

P&O Ports is the P&O Group company responsible for port

development, investment, operating and stevedoring
activities. Originating in the creation of an Australia wide
stevedoring and terminal operating entity, its first
international activity was the 1986 joint venture privatisation
and management of the Port Kelang container terminal in
Malaysia. This was one of the first privatisations of public
port assets undertaken worldwide and its great success
resulted in it becoming an international model.
P&O Ports success and experience in the Port Kelang
privatisation was also the foundation for further
international investment by P&O resulting in it today
being a world leader in port development and
operation.
P&O Ports previous and current activities may be summarised as follows:

Australia and New Zealand

P&O leases and operates container terminals in Brisbane, Sydney, Melbourne
and Fremantle. The Bulk and General Stevedoring division traces its origins to
the 19th century and offers services in some 50 ports throughout Australia, New
Zealand and Papua New Guinea.

UK - Southampton Container Terminals Ltd (SCT)

Formed a joint venture with ABP in 1988 to operate the port.

Philippines - Asian Terminals Inc. (ATI)

In 1990 P&O formed a joint venture to acquire Marina Port Services, Inc., which
held the management rights in the South Harbour of Manila. The company was
renamed Asian Terminals Inc.

China - Tianjin Xingang Sinor Terminal Co. Ltd. (Sinor)

Sinor, a joint venture between the Port of Tianjin, Gearbulk Shipping and P&O
Ports, was formed to redevelop and manage a multi-purpose terminal in the Port
of Tianjin, China. When opened in 1992 it was the first port joint venture in China.

China - Shekou Container Terminal

P&O is an investor in, and management services provider for, the Shekou

Container Terminal (SCT), which is one the largest container terminals in

southern China.

Argentina- Terminales Rio de la Plata

P&O is the managing investor in TRP which in 1994 privatised and developed
Terminals I & II in Buenos Aires under a 25 year concession. The existing general
cargo facilities were converted into a state of the art container terminal with an
800,000 teu capacity.

Russia - Vostochny International Container Terminal Services (VICS)

In 1994, P&O and Sea-Land privatised Vostochny Container Terminal with the
Port Authority maintaining a 50% share. The privatisation of VICS was the first
joint venture port investment in Russia.

Indonesia - Freeport
In 1994, P&O, in association with a local partner, acquired the logistics support
facilities for the Freeport Copper Mine in Irian Jaya, Indonesia.

Pakistan - Port Qasim International Container Terminal (QICT)

P&O is the managing investor in QICT, which, under a 30 year concession,
upgraded a conventional wharf into Pakistans first specialised container terminal.
The terminal was commissioned in 1997.

Thailand - Laem Chabang International Container Terminal (LCIT)

P&O is the managing investor in the US$70M BOT development and operation of
a 400 metre container terminal at Laem Chabang under a 30 year concession.
This state of the art terminal will be commissioned in early 1998.

Mozambique - Maputo International Port Services (MIPS)

P&O is the managing investor in a joint venture with the Mozambique Ports and
Railways (CFM) which has refurbished and upgraded Maputos container
terminal.

India - Nhava Sheva International Container Terminal (NSICT)

P&O is the managing investor in the US$200M BOT development and operation
of a 600 metre container terminal at Mumbais new port, Nhava Sheva. This
development was the first port facility awarded to private investors by the Indian
Government and was commissioned in early 1999.

USA
Acquired ITO multiport stevedore/terminal operator, June 1999.

Kandla, India
Selected preferred bidder for BOT redevelopment of terminal, August 1999.

Colombo, Sri Lanka

Concluded BOT concession for 1M capacity terminal, September 1999.

South Africa
Acquired National Stevedores multiport stevedore, November 1999.

Shellhaven, UK
January 2000, entered exclusivity agreement for redevelopment.

Qingdao, China
February 2000, entered joint venture with QPA for 1M+ capacity terminal.

Antwerp, Belgium
May 2000, acquired two terminals.

New Orleans, USA

Acquired Gulf Services, also in May 2000.

New York, USA

November 2000, entered into joint venture (PNCT) with P&O Nedlloyd in Port of
New York and New Jersey with terminal capacity of 1M TEUs.

Antwerp, Belgium
Purchased Antwerp Combined Terminals (ACT), Antwerps largest cargo
stevedore, November 2000.

Baltimore, USA
Awarded 6 year contract to manage two facilities in May 2001.

Chennai, India
November 2001, 20 year contract to develop, operate and manage the Chennai
Container Terminal handed over by the Indian Government.

Australia

Acquired the Australian local logistics firm Smith Bros., November 2001.

Terminal Petikemas Surabaya

April 1999, Purchased a 49% interest in PT Terminal Petikemas.

Vancouver, Canada
P&O Ports purchased a container terminal, Centerm, and a general cargo
stevedoring operation from BCR Marine in February 2003.

Laem Chabang, Thailand

The Laem Chabang International Terminal (LCIT) was granted a 30 year
concession in April 2003 to operate the C3 container terminal at the port of Laem
Chabang in Thailand. The C3 terminal is anticipated to commence operations
from mid-2004.

France
Portsynergy, a joint venture between P&O Ports and CMA-CGM, acquired EGIS
Ports, with stevedoring operations at Container Terminals in Le Havre, Fos and
Marseilles, completing the transaction in June 2003.

Mundra, India
A new deep water container port at Mundra in the state of Gujarat, operated by
P&O Ports, opened for business in July 2003.

Qingdao, China
At a ceremony held in the Great Hall of the People of Beijing on 21st July 203.
P&O Chairman Lord Sterling signed a major agreement with the Qingdao Port
Corporation (QPC) to invest in and operate a new phase of the container port at
Qingdao on the central coast of China.

Lawmakers are upset that P&O, which runs 100 ports in 19 countries, is being purchased by DP World
with the approval of the U.S. Committee on Foreign Investment in the United States (CFIUS), a 12member panel chaired by Treasury Secretary John Snow and comprised of members of the departments
of State, Defense, Justice, Commerce and Homeland Security.

http://www.treas.gov/offices/international-affairs/exon-florio/
U.S. DEPARTMENT OF TREASURY
OFFICE OF THE ASSISTANT SECRETARY INTERNATIONAL AFFAIRS
OFFICE OF INTERNATIONAL INVESTMENT

EXON-FLORIO PROVISION
Introduction. The United States has traditionally welcomed Foreign Direct Investment (FDI) and
provided foreign investors fair, equitable and nondiscriminatory treatment with few limited
exceptions designed to protect national security. The Exon-Florio provision is implemented
within the context of this open investment policy. The intent of Exon-Florio is not to discourage
FDI generally, but to provide a mechanism to review and, if the President finds necessary, to
restrict FDI that threatens the national security.
The Exon-Florio provision is implemented by the Committee on Foreign Investment in the
United States ("CFIUS"), an inter-agency committee chaired by the Secretary of Treasury.
CFIUS seeks to serve U.S. investment policy through thorough reviews that protect national
security while maintaining the credibility of our open investment policy and preserving the
confidence of foreign investors here and of U.S. investors abroad that they will not be subject to
retaliatory discrimination.
The Statute. Section 5021 of the Omnibus Trade and Competitiveness Act of 1988 amended
Section 721 of the Defense Production Act of 1950 to provide authority to the President to
suspend or prohibit any foreign acquisition, merger or takeover of a U.S. corporation that is
determined to threaten the national security of the United States. The President can exercise this
authority under section 721 (also known as the "Exon-Florio provision") to block a foreign
acquisition of a U.S. corporation only if he finds:
(1) there is credible evidence that the foreign entity exercising control might take
action that threatens national security, and
(2) the provisions of law, other than the International Emergency Economic
Powers Act do not provide adequate and appropriate authority to protect the
national security.

To assist in making this determination, Exon-Florio provides for the President or his designee to
receive written notice of an acquisition, merger or takeover of a U.S. corporation by a foreign
entity. Once CFIUS has received a complete notification, it begins a thorough review of the
notified transaction. In some cases, it is necessary to undertake an extended review or
"investigation." An investigation, if necessary, must begin no later than 30 days after receipt of a
notice. Any investigation is required to end within 45 days.
Information provided by companies contemplating a transaction subject to Exon-Florio is held
confidential and is not made public, except in the case of an administrative or judicial action or
proceeding. Nothing in section 721 shall be construed to prevent disclosure to either House of
Congress or to any duly authorized committee or subcommittee of the Congress.
Factors To Be Considered. The Exon-Florio provision lists the following factors that the
President or his designee may consider in determining the effects of a foreign acquisition on
national security. These factors are:
(1) domestic production needed for projected national defense requirements;
(2) the capability and capacity of domestic industries to meet national defense
requirements, including the availability of human resources, products, technology,
materials, and other supplies and services;
(3) the control of domestic industries and commercial activity by foreign citizens
as it affects the capability and capacity of the U.S. to meet the requirements of
national security;
(4) the potential effects of the transaction on the sales of military goods,
equipment, or technology to a country that supports terrorism or proliferates
missile technology or chemical and biological weapons; and
(5) the potential effects of the transaction on U.S. technological leadership in
areas affecting U.S. national security.
Amendments. Section 837(a) of the National Defense Authorization Act for Fiscal Year 1993,
called the "Byrd Amendment," amended Section 721 of the Defense Production Act (the "ExonFlorio provision"). It requires an investigation in cases where:
o the acquirer is controlled by or acting on behalf of a foreign government; and
o the acquisition "could result in control of a person engaged in interstate
commerce in the U.S. that could affect the national security of the U.S."
Legislative Cite. Section 721 of Pub. L. 100-418, 102 Stat. 1107, made permanent law by section
8 of Pub. L. 102-99, 105 Stat. 487 (50 U.S.C. App. 2170) and amended by section 837 of the
National Defense Authorization Act for Fiscal Year 1993, Pub. L. 102-484, 106 Stat. 2315, 2463.

CFIUS
Executive Order. The Committee on Foreign Investment in the United States ("CFIUS") was
originally established by Executive Order 11858 in 1975 mainly to monitor and evaluate the
impact of foreign investment in the United States. In 1988, the President, pursuant to Executive
Order 12661, delegated to CFIUS his responsibilities under Section 721. Specifically, E.O.
12661 designated CFIUS to receive notices of foreign acquisitions of U.S. companies, to
determine whether a particular acquisition has national security issues sufficient to warrant an
investigation and to undertake an investigation, if necessary, under the Exon-Florio provision.
This order also provides for CFIUS to submit a report and recommendation to the President at
the conclusion of an investigation.
In 1993, in response to a sense of Congress resolution, CFIUS membership was expanded by
Executive Order 12860 to include the Director of the Office of Science and Technology Policy,
the Assistant to the President for National Security Affairs and the Assistant to the President for
Economic Policy. In February 2003, the Department of Homeland Security was added to CFIUS.
This brought the membership of CFIUS to twelve under the chairmanship of the Secretary of
Treasury. The other members are the Secretaries of State, Defense, and Commerce, the Attorney
General, the Director of the Office of Management and Budget, the U.S. Trade Representative,
and the Chairman of the Council of Economic Advisers.
Regulations. The Exon-Florio provision requested that the President issue implementing
regulations. These regulations were issued in 1991. They set up a voluntary system of
notification with the possibility of CFIUS member-agency notice for non-notified transactions.
The President retains full authority to protect the national security with respect to any acquisition
covered by this statute, regardless of whether the parties file a notification.
The Exon-Florio regulations do not define national security. The preamble to the regulations
provides guidance that products, services and technologies important to U.S. defense
requirements would be significant to national security. Even though notification is voluntary,
CFIUS would consider notification of these transactions appropriate.
Code of Federal Regulations Citation. Office of International Investment, Department of
Treasury -- Regulations pertaining to mergers, acquisitions, and takeovers by foreign persons, 31
CFR Part 800.
Procedures. Treasury, acting at the staff level through the Director of the Office of International
Investment in the Office of the Assistant Secretary of International Affairs, acts as the secretariat
for CFIUS. It receives and circulates notices to CFIUS agencies and coordinates reviews.
Reviews are conducted on a case-by-case basis.
The Exon-Florio statute established a 30-day review following receipt of a notification. For those
transactions for which an extended 45-day review (or "investigation") is completed, a report
must be provided to the President, who must by law announce the final decision within 15 days.
In total, the process can not exceed 90 days. The statute requires the President to inform
Congress of his determination of whether or not to take action under section 721.

The parties to an acquisition subject to section 721 may submit a voluntary notice to CFIUS of
the proposed or completed acquisition by sending 13 copies of the information requested in part
800.402 of the Exon-Florio regulations to:
Ms. Gay Hartwell Sills
Staff Chair
Committee on Foreign Investment in the United States ("CFIUS")
Office of International Investment
Department of Treasury
1500 Pennsylvania Avenue, N.W., Room 4201 NY
Washington, DC 20220

Firm Sues to Block Foreign Port Takeover

http://www.ajc.com/news/content/sharedgen/ap/National/Port_Security.html

WASHINGTON A company at the Port of Miami has sued to block the takeover of
shipping operations there by a state-owned business in the United Arab Emirates. It is
the first American courtroom effort to capsize a $6.8 billion sale already embroiled in a
national debate over security risks at six major U.S. ports affected by the deal.
The Miami company, a subsidiary of Eller & Company Inc., presently is a business
partner with London-based Peninsular and Oriental Steam Navigation Co., which Dubai
Ports World purchased last week. In a lawsuit in Florida circuit court, the Miami
subsidiary said that under the sale it will become an "involuntary partner" with Dubai's
government and it may seek more than $10 million in damages.
The Miami subsidiary, Continental Stevedoring & Terminals Inc., said the sale to Dubai
was prohibited under its partnership agreement with the British firm and "may endanger
the national security of the United States." It asked a judge to block the takeover and
said it does not believe the company, Florida or the U.S. government can ensure Dubai
Ports World's compliance with American security rules.
A spokesman for Peninsular and Oriental indicated the company had not yet seen the
lawsuit and declined to comment immediately.
The lawsuit represents the earliest skirmish over lucrative contracts among the six
major American ports where Peninsular and Oriental runs major commercial operations:
New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. The lawsuit
was filed moments before the court closed Friday and disclosed late Saturday by people
working on the case.
The sale, already approved by the Bush administration, has drawn escalating criticism
by lawmakers in Washington who maintain the United Arab Emirates is not consistent in
its support of U.S. terrorism-fighting efforts. At least one Senate oversight hearing is
planned for later this month.
The Port of Miami is among the nation's busiest. It is a hub for the nation's cruise ships,
which carry more than 6 million passengers a year, and the seaport services more than
30 ocean carriers, which delivered more than 1 million cargo containers there last year.
A New Jersey lawmaker said Saturday he intends to require U.S. port security officials
be American citizens, to prevent overseas companies operating domestic shipping
facilities from hiring foreigners in such sensitive positions. Republican Frank A.
LoBiondo, chairman of the Coast Guard and Maritime Transportation Subcommittee,
cited "significant" security worries over the sale to Dubai Ports World.

Caught by surprise over the breadth of concerns expressed in the United States, Dubai
is cautiously organizing its response. The company quietly dispatched advisers to
reassure port officials along the East Coast, and its chief operating officer
internationally respected American shipping executive Edward "Ted" H. Bilkey is
expected to travel to Washington this week for meetings on Capitol Hill and elsewhere.
The Bush administration in recent days has defended its approval of the sale, and has
resisted demands by Congress to reconsider. State Department spokesman Sean
McCormack described the United Arab Emirates on Friday as a "long-standing friend
and ally" and said the United States and UAE had a good relationship.
President Bush visited the seaport in Tampa, Fla., but did not mention the dispute
Friday. The president said an important element of defeating terrorism was taking
precautions domestically and working with local government officials.
"We've got to protect ourselves by doing smart things in America," Bush said. "I
appreciate working with the mayors on homeland security issues."
One of those mayors, Martin O'Malley of Baltimore, on Saturday harshly criticized the
president's approval of the ports deal as an "outrageous, reckless and irresponsible
decision" and urged the White House to reconsider the sale. Baltimore is one of the
affected ports, and O'Malley is co-chairman of the U.S. Conference of Mayors' Task
Force on Homeland Security. O'Malley also is running for the Democratic gubernatorial
nomination in Maryland.
Dubai Ports World declined through a spokesman to respond to O'Malley's remarks.
In New York, families of some victims from the September 2001 terror attacks planned
to criticize the deal during a press conference Sunday with Democratic Sen. Charles
Schumer, a leading critic of the sale. Schumer said he is dubious any assurances can
justify involvement by the United Arab Emirates in American ports.
Schumer and other critics have cited the UAE's history as an operational and financial
base for the hijackers who carried out the attacks against New York and Washington.
"A lot of families are incensed by this, because you're talking about the safety of the
country," said William Doyle, whose son Joseph died at the World Trade Center. ""We
have a problem already in our ports because all of our containers aren't checked, but
now they want to add this unknown? It's not right."
LoBiondo's legislative proposal would amend federal maritime laws to require facility
security officers, which operate at terminals in every U.S. port, to be American citizens.
LoBiondo said there are presently no citizenship requirements, which he said permits
foreign companies who are or become partners in domestic terminal operations to
employ security officers who are not Americans.

"We cannot be lax about our nation's security nor fail to recognize that our ports are
realistic targets of terrorists," LoBiondo said.
http://www.whisprwave.com/maritime-port-security-blog.htm
WALLACE: Let me ask you both about another program that just really sort of bubbled up to
the surface this week. The Bush administration has just approved a company from the United
Arab Emirates called Dubai Ports World buying and taking over some of the operations, as you
can see there on the screen, of six of America's biggest ports.
Some of your colleagues, both Republicans and Democrats, say that this is potentially a
serious security breach.
Senator Bayh, should this sale be blocked?
BAYH: I think we've got to look into this company, Chris. I think we've got to ensure ourselves
that the American people's national security interests are going to be protected. And frankly, I
think the threshold ought to be a little higher for a foreign firm. There can't be a choice
between profits and protecting the American people.
We have to do, even if it costs us a couple extra bucks, what it takes to protect this country.
I'll give you one little example. About 80 percent of the magnets that make our smart bombs
go are now made in China. It's not smart to rely on China to produce important weapons
systems for this country, just like it's not smart to outsource our port security if there's any
doubt.
So, look. We have to do what it takes to protect America. When in doubt, if it costs us a little
more money, well, that's the price of freedom.
WALLACE: Would you like to see a congressional investigation of this?
BAYH: I think we need to look into it to reassure ourselves, yes.
WALLACE: Senator Graham, your view about the sale of this company to Dubai Ports World and
whether or not Congress should take a role in either blocking or at least investigating it.
GRAHAM: We certainly should investigate it. I don't know if we should block it. But it's
unbelievably tone deaf politically at this point in our history, four years after 9/11, to
entertain the idea of turning port security over to a company based in the UAE, who avows to
destroy Israel.
So I'm not so sure it's the wisest political move we could have made. Most Americans are
scratching their head wondering why this company, from this region, now.
WALLACE: Well, given that, why even consider going ahead with the sale, sir?
GRAHAM: Well, because I don't want to make a judgment without all the facts. Just on its
face, it sounds like the wrong direction to go. We did this a few months ago with a Chinese
company trying to buy some energy resources in the country.

Americans right now want free trade, but when it comes to national security issues, we want
to maintain the infrastructure ourselves. We believe we're under siege. We are. I don't think
now is the time to outsource major port security to a foreign-based company.

Government Study Shows U.S. Port Vulnerability

http://www.foxnews.com/story/0,2933,187558,00.html
WASHINGTON Lapses by private port operators, shipping lines or truck drivers could allow
terrorists to smuggle weapons of mass destruction into the United States, according to a
government review of security at American seaports.
The $75 million, three-year study by the Homeland Security Department included inspections at a New
Jersey cargo terminal involved in the dispute over a Dubai company's now-abandoned bid to take over
significant operations at six major U.S. ports.
The previously undisclosed results from the study found that cargo containers can be opened secretly
during shipment to add or remove items without alerting U.S. authorities, according to government
documents marked "sensitive security information" and obtained by The Associated Press.
The study found serious lapses by private companies at foreign and American ports, aboard ships, and on
trucks and trains "that would enable unmanifested materials or weapons of mass destruction to be
introduced into the supply chain."
The study, expected to be completed this fall, used satellites and experimental monitors to trace roughly
20,000 cargo containers out of the millions arriving each year from Europe, Asia and the Middle East.
Most containers are sealed with mechanical bolts that can be cut and replaced or have doors that can be
removed by dismantling hinges.
The risks from smuggled weapons are especially worrisome because U.S. authorities largely decide
which cargo containers to inspect based on shipping records of what is thought to be inside.
Among the study's findings:
_Safety problems were not limited to overseas ports. A warehouse in Maine was graded less secure than
any in Pakistan, Turkey or Brazil. "There is a perception that U.S. facilities benefit from superior security
protection measures," the study said. "This mind set may contribute to a misplaced sense of confidence in
American business practices."
_No records were kept of "cursory" inspections in Guatemala for containers filled with Starbucks Corp.
coffee beans shipped to the West Coast. "Coffee beans were accessible to anyone entering the facility,"
the study said. It found significant mistakes on manifests and other paperwork. In a statement to the AP,
Starbucks said it was reviewing its security procedures.
_Truck drivers in Brazil were permitted to take cargo containers home overnight and park along public
streets. Trains in the U.S. stopped in rail yards that did not have fences and were in high-crime areas. A
shipping industry adage reflects unease over such practices: "A container at rest is a container at risk."

_Practices at Turkey's Port of Izmir were "totally inadequate by U.S. standards." But, the study noted, "It
has been done that way for decades in Turkey."
_Containers could be opened aboard some ships during weekslong voyages to America. "Due to the time
involved in transit (and) the fact that most vessel crew members are foreigners with limited credentialing
and vetting, the containers are vulnerable to intrusion during the ocean voyage," the study said.
_Some governments will not help tighten security because they view terrorism as an American problem.
The U.S. said "certain countries," which were not identified, would not cooperate in its security study "a
tangible example of the lack of urgency with which these issues are regarded."
_Security was good at two terminals in Seattle and nearby Tacoma, Wash. The operator in Seattle, SSA
Marine, uses cameras and software to track visitors and workers. "We consider ourselves playing an
important role in security," said the company's vice president, Bob Waters.
In theory, some nuclear materials inside cargo containers can be detected with special monitors. But such
devices have frustrated port officials in New Jersey because bananas, kitty litter and fire detectors
which all emit natural radiation set off the same alarms more than 100 times every day.
The study applauded efforts to install radiation monitors overseas. "While there is clearly value in nuclear
detection at a U.S. port, that is precisely the concern it is already on U.S. soil," it said.
Finding biological and chemical weapons inside cargo containers is less likely. The study said tests were
"labor intensive, time-consuming and costly to use" and produced too many false alarms. "No silver bullet
has emerged to render terrorists incapable of introducing WMD into containers," it said.
Sen. Patty Murray (news, bio, voting record), who advocated the study, said: "There are huge holes in our
security system that need to be filled." The Washington Democrat said the study "shows us there are
major vulnerabilities over who handles cargo, where it's been and whether cargo is on a manifest."
Part of the study tested new tamper-evident locks on containers and tracking devices.
"It's important to figure out what works and what doesn't," said Elaine Dezenski, Homeland Security's
acting assistant secretary for policy development. She said the study "gave us a much better view of
vulnerabilities." The U.S. is looking for weaknesses across the shipping system to learn where terrorists
might strike, she said.
The study, called "Operation Safe Commerce," undercuts arguments that port security in America is an
exclusive province of the Coast Guard and U.S. Customs and Border Protection and is not managed by
companies operating shipping terminals.
The theme was an important element in the Bush administration's forceful defense of the deal it originally
approved to allow Dubai-owned DP World to handle significant operations at ports in New Jersey,
Baltimore, New Orleans, Miami and Philadelphia.

Bush and senior officials sought to assure lawmakers that safety at ports would not decline.
"I can understand people's consternation because the first thing they heard was that a foreign company
would be in charge of our port security when in fact, the Coast Guard and Customs are in charge of our
port security," Bush said Feb. 28. "Our duty is to protect America, and we will protect America."
DP World promised on Thursday to transfer fully to an American company its U.S. port operations it
acquired when it bought London-based Peninsular & Oriental Steam Navigation Co.
It was unclear how such a sale might occur, but the divestiture was expected to involve major operations
at the six U.S. ports and affect lesser dockside activities at 16 other ports in this country.
Sen. Robert Menendez, D-N.J., a leading critic of the Dubai deal, said anyone suggesting that port
operators and shipping companies were not involved with security was "living in La-La land."
"You can obviously have stuff in containers that doesn't make it onto manifests, either by design or from
the actions of bad actors," Menendez said in an AP interview Friday. "A terminal operator is so involved in
the overall security equation of ports."
Parts of the U.S. study examined the safety of containers sent to the same cargo terminal in New Jersey
that DP World would have managed jointly and operated with its Denmark-based rival, Maersk Sealand.
Hundreds of pages of study documents obtained by the AP do not list specific security lapses at the New
Jersey terminal. The final two cargo containers being tracked under the study were expected to arrive
there this week from the Middle East.
But the study broadly described problems in warehouses and other storage areas that raised doubts
about the safety of containers brought to New Jersey's port. It cited problems with protective fences and
gates, surveillance cameras and emergency plans.
The lengthy study has been beset by problems. Japan refused to allow officials to attach tracking devices
to containers destined for the United States. Other tracking devices sometimes failed. Many shipping
companies refused to disclose information for competitive reasons.
Some containers in the study were aboard a ship the Coast Guard held 11 miles off New Jersey's coast
for security reasons in August 2004. An anonymous e-mail had claimed a container filled with tons of
lemons was deliberately contaminated with a biological agent. The lemons were fumigated and burned,
but no trace of poison was ever found; the containers also were destroyed.
Parts of the study could not be finished at all. U.S. officials went to Pakistan to inspect how workers in
Karachi handle cargo containers. But they canceled plans for a return inspection because of an outbreak
of terrorist attacks there.

Dean Delivers Dems Weekly Radio Address

WASHINGTON The chairman of the Democratic National Committee sought to capitalize

Saturday on the recent divide between President Bush and congressional Republicans over ports
security, arguing that the GOP has a "pre-9/11 mind-set" on ensuring safety at U.S. entries.
In his party's weekly radio address, Howard Dean trumpeted the Democrats' success in helping to derail a
plan for a Dubai-owned company to manage some operations at six U.S. ports.
Bush strongly backed the deal involving the United Arab Emirates-based company, but many
lawmakers, both Republicans and Democrats, opposed having a foreign government oversee operations
at ports vulnerable to terrorist attacks.
In a surprise announcement, DP World said Thursday it would transfer terminal operations at six ports to
a U.S. entity, sparing Bush a veto showdown with GOP lawmakers.
However, the Financial Times newspaper of London reported Friday that DP World is considering
retaining a 49 percent interest in the port operations. A DP World spokesman said he didn't know whether
the report, attributed to a person involved in the deal, was accurate.
"Any of these plans that allow Dubai Ports World to retain any portion of ownership or control over U.S.
ports is absolutely unacceptable," said Sen. Charles Schumer, D-N.Y. "If they insist on doing so, we will
move our legislation preventing them from owning or controlling any percentage of U.S. port operations."
"America had a great victory this week in the War on Terror," Dean said in the radio address. "Key
Democratic senators and representatives forced President Bush to give up the idea that six major
American ports should be run by a foreign country. Republicans in Congress followed the Democrats' lead
to demand the president change the policy."
Bush said Friday he was open to changing how the government reviews such transactions. But, he told a
gathering of newspaper executives, "I'm concerned about a broader message this issue could send to our
friends and allies around the world, particularly in the Middle East."
"In order to win the War on Terror, we have got to strengthen our friendships and relationships with
moderate Arab countries in the Middle East," he said.
National security has been Bush's signature issue since the Sept. 11, 2001, terrorist attacks, boosting him
to a second term in 2004. In January, White House adviser Karl Rove promised to make the War on
Terrorism a central campaign issue as Republicans looked to maintain their grip on the House and Senate
in the midterm elections.
Rove told the GOP activists: "Republicans have a post-9/11 view of the world. And Democrats have a pre9/11 view of the world."
In an echo of Rove's approach, Dean said the ports security controversy highlights a different Republican
Party.

"Republicans have shown a pre-9/11 mind-set when it comes to closing the gaps in our security at our
ports," the Democratic chairman said. "Democrats will continue to fight to secure our ports."
On another issue, Dean assailed Bush for running up the U.S. debt by $3 trillion during his tenure,
contending that amounts to another security crisis.
"One of the implications of this increased debt is that increasingly, foreigners are financing this debt,
putting the American economy in the hands of foreign debt holders, just like the ports deal would have put
port security in the hands of a foreign-owned government," Dean said.
Dean said the Democrats will oppose budgets that deepen the deficit.

Arab Firms Reassess U.S. Holdings, Future

Investments
http://www.foxnews.com/story/0,2933,187462,00.html
DUBAI, United Arab Emirates Gulf investors, feeling scorched by what they see as an anti-Arab
backlash in the U.S. Congress, will likely be wary of high-profile investments in the United States
after the ports controversy with a Dubai firm.
Analysts said Friday, however, that with Gulf nations awash in cash from oil profits, the United States
remains a tempting market to invest. So instead of retreating, over the longer term, Arab investors and
governments may campaign to shore up their image among Americans to ensure their money is welcome.
President Bush said Friday he was worried over the message the fallout of the ports controversy will send
to the Arab world. On Thursday, Dubai Ports announced that it would give up management of six U.S.
ports after an outcry in Congress over security.
In Dubai and elsewhere in the Gulf, the controversy was largely seen as reflecting an anti-Arab bias.
Dubai Ports' concession was likely to solidify that belief.
"It's a sobering moment," said Eddie O'Sullivan, Dubai-based editorial director of the Middle East
Economic Digest. "People are going to have to be much more careful. There's a fear they [members of
Congress] may move on to other targets in the Arab world. If it happened once it can happen again."
Investors and businesses in UAE, Kuwait, Qatar and Saudi Arabia reviewing portfolios for U.S. holdings
that could spark a similar uproar in Congress, O'Sullivan said.
"I'm sure they will be reviewing their portfolios. Most of them are in dollar-denominated assets. They'll
want to see how vulnerable it is to the U.S. Congress," O'Sullivan said. "It'll be more difficult to finalize an
investment proposal that involves an American bank or an American asset."

A short-term backlash could follow: Perhaps a government-owned company will favor European or Asian
suppliers over American ones in the future.
Few observers believe it will torpedo giant recent orders by two UAE airlines of Boeing passenger jets.
But Boeing may have to look outside the Gulf for future deals, said Youssef M. Ibrahim, managing director
of Dubai-based risk consultancy Strategic Energy Investment Group.
"The next deal they will do with Airbus," the European aircraft consortium, Ibrahim said. "Dubai's ability to
react is constrained. You can't punish America much if you are so small."
Last year, Dubai companies invested $5.5 billion in the West, much of that in the United States. In the
next five years, the six Gulf countries will have a half-trillion dollars in assets to invest.
They may be more disposed to look to Europe or Asia for investment now but in the end, the amount of
cash is so huge that only U.S. assets can soak it up, O'Sullivan said.
"The United States represents 50 percent of the world's economic market, 50 percent of the world's
consumption and 50 percent of the assets in which you can put money," Ibrahim said. "At the end of the
day, there aren't too many places where you can invest that kind of cash overflow."
The Emirates is unlikely to retaliate strongly for the slight, for instance by blocking the U.S. Navy and Air
Force access to critical bases here, a prospect that has worried top U.S. military leaders.
Governments of other cash-rich Gulf countries like Kuwait, Qatar and Saudi Arabia will be loath to ruffle
relations with the United States, analysts said.
Shehab Gergash, chief executive of Al-Daman, a Dubai-based investment bank, said he had seen no
drop in investor interest in American products or securities.
"Time will tell whether it has any effect" on Arab investment in the States or Arab purchases of U.S.
goods, Gergash said.
Many here blame the controversy on American politicians for playing to a deepening anti-Arab bias in the
United States. Dubai-based Gulf News said U.S. Democrats were trying to "score political points" against
the Bush administration on national security by ignoring the facts of the case.
"It is deemed better to jump on the bandwagon of anti-Arab, anti-Middle East, anti-Muslim tirade that has
been popular since the 9/11 attacks," the paper's editorial page said Friday.
Ibrahim said the UAE may move to boost its image among Americans who fear closer ties with the Middle
East. It may embark on opinion-shaping ventures that mimic Israel's deft public relations maneuvers:
hosting visits by members of Congress, business leaders and chiefs of unions like the Teamsters, which
opposed the deal, Ibrahim said.

"They should've invited these people here and shown them around, so they had friends who would
defend them instead of attacking them without knowing anything about Dubai," Ibrahim said.

WhiteHousedefendssaleofportoperationstoArabowners
http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj-portsecurity0216feb16,0,7856482.story?coll=ny-region-apnewjersey
WASHINGTON (AP) _ The Bush administration on Thursday rebuffed criticism about
potential security risks of a $6.8 billion sale that gives a company in the United Arab
Emirates control over significant operations at six major American ports. Lawmakers
asked the White House to reconsider its earlier approval of the deal.
The sale to state-owned Dubai Ports World was "rigorously reviewed" by a U.S.
committee that considers security threats when foreign companies seek to buy or invest
in American industry, National Security Council spokesman Frederick Jones said.
The Committee on Foreign Investment in the United States, run by the Treasury
Department, reviewed an assessment from U.S. intelligence agencies. The committee's
12 members agreed unanimously the sale did not present any problems, the
department said.
"We wanted to look at this one quite closely because it relates to ports," Stewart Baker,
an assistant secretary in the Homeland Security Department, told The Associated
Press. "It is important to focus on this partner as opposed to just what part of the world
they come from. We came to the conclusion that the transaction should not be halted."
The unusual defense of the secretive committee, which reviews hundreds of such deals
each year, came in response to criticism about the purchase of London-based
Peninsular and Oriental Steam Navigation Co.
The world's fourth-largest ports company runs commercial operations at shipping
terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
Four senators and three House members asked the administration Thursday to
reconsider its approval. The lawmakers contended the UAE is not consistent in its
support of U.S. terrorism-fighting efforts.
"The potential threat to our country is not imagined, it is real," Rep. Mark Foley, R-Fla.,
said in a House speech.
The Homeland Security Department said it was legally impossible under the
committee's rules to reconsider its approval without evidence DP World gave false
information or withheld vital details from U.S. officials. The 30-day window for the
committee to voice objections has ended.

DP World said it had received all regulatory approvals.

"We intend to maintain and, where appropriate, enhance current security
arrangements," the company said in a statement. "It is very much business as usual for
the P&O terminals" in the United States.
In Dubai, the UAE's foreign minister described his country as an important U.S. ally but
declined to respond directly to the concerns expressed in Washington.
"We have worked very closely with the United States on a number of issues relating to
the combat of terrorism, prior to and post Sept. 11," Sheik Abdullah Bin Zayed alNahyan told The Associated Press.
U.S. lawmakers said the UAE was an important transfer point for shipments of
smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani
scientist, Abdul Qadeer Khan. They also said the UAE was one of only three countries
to recognize the now-toppled Taliban as Afghanistan's legitimate government.
The State Department describes the UAE as a vital partner in the fight against terrorism.
Dubai's own ports have participated since last year in U.S. efforts to detect illegal
shipments of nuclear materials.
Rep. Vito Fossella, R-N.Y., urged congressional hearings on the deal.
"At a time when America is leading the world in the war on terrorism and spending
billions of dollars to secure our homeland, we cannot cede control of strategic assets to
foreign nations with spotty records on terrorism," Fossella said.
Critics also have cited the UAE's history as an operational and financial base for the
hijackers who carried out the attacks of Sept. 11, 2001.
"Outsourcing the operations of our largest ports to a country with a dubious record on
terrorism is a homeland security and commerce accident waiting to happen," said Sen.
Charles Schumer, D-N.Y. "The administration needs to take another look at this deal."
Separately, the Port Authority of New York and New Jersey said Thursday it will conduct
its own review of the deal and urged the government to defend its decision.
In a letter to the Treasury Department, Port Authority chairman Anthony Coscia said the
independent review by his agency was necessary "to protect its interests."
The lawmakers pressing the White House to reconsider included Sens. Schumer, Tom
Coburn, R-Okla., Frank Lautenberg, D-N.J., and Chris Dodd, D-Conn., and Reps. Foley,
Fossella and Chris Shays, R-Conn.

ARAB-OWNED AMERICAN PORTS?

HTTP://WASHINGTONTIMES.COM/OP-ED/20060214-102147-5104R.HTM
Some of the country's busiest ports -- New York, New Jersey, Baltimore and three others -- are
about to become the property of the United Arab Emirates. Do we really want our major ports in
the hands of an Arab country where al Qaeda recruits, travels and wires money?
The U.S. Committee on Foreign Investment, a Treasury Department-dominated group which
reviews foreign investments, allows such purchases. The committee approved a $6.8 billion
transaction between the ports' current British owners and Dubai Ports World, a governmentowned United Arab Emirates firm. The United Arab Emirates was home to Marwan al-Shehhi, a
September 11 hijacker; the country is a transit point for al Qaeda, including several other
September 11 hijackers; al Qaeda's financing activities have involved the UAE; al Qaeda finds
sympathizers there with ease, as it does in other Arab countries.
The Bush administration calls the United Arab Emirates an ally in the war on terror. But the
UAE plays the same game Saudi Arabia does of quelching terrorists at home and turning a blind
eye everywhere else.
It would be easy to caricature this sale: The purchase doesn't entail young Arab firebrands
replacing longshoremen, nor would it displace American ownership. The storied British firm that
currently owns them, the Peninsular & Oriental Steam Navigation Co., probably isn't much
better equipped against terrorist infiltration than Dubai Ports World. But then, the poor state of
port security is precisely the point.
We should be improving port security in an age of terrorism, not outsourcing decisions to the
highest bidder. The ports are thought to be the country's weakest homeland-security link, with
good reason. Only a fraction of the nation's maritime cargoes are inspected.
This deal appears to be all about money. Dubai Ports World is "a business and its money is the
same color as everyone else's, only it's got more of it," one banker told the Baltimore Sun. Where
does the money come from? As a private company, Dubai Ports World's claim of 20 percent
annual growth since 2001 is all but unverifiable, and its inner workings opaque. For all we know,
Dubai Ports World is an undeclared arm of a foreign government.
The root question is this: Why should the United States have to gamble its port security on
whether a subsidiary of the government of the United Arab Emirates happens to remain an
antiterrorism ally?
The Committee on Foreign Investment is the wrong place for this decision to be made; it
appears to be little more than a rubber stamp.
Sen. Chuck Schumer, New York Democrat, among others, is asking tough questions about this
deal. For once, we agree with him: President Bush should overrule the committee to reject this
deal. If that doesn't happen, Congress should take action. The country's ports should not be
owned by foreign governments; much less governments whose territories are favored by al
Qaeda.

Arab takeover of U.S. ports seen as security 'insanity'

President asked to stop deal for Dubai firm to control 6 American maritime operations
http://worldnetdaily.com/news/article.asp?ARTICLE_ID=48845

A company owned by the government of Dubai in the United Arab Emirates

is poised to take over six U.S. ports, a development that has local and federal
elected officials outraged.
A merger deal approved by the federal government has the company
currently running the ports, London-based Peninsular and Oriental Steam
Navigation Company, getting acquired by the Emirati firm, Dubai Ports World.
UAE has known ties to terrorists and 9-11 hijackers, raising concerns about
security issues at the ports involved: New York, Baltimore, New Jersey, New
Orleans, Miami and Philadelphia.
"On its face, this looks like [expletive] insanity to me," the Republican
minority leader of the New York City Council, James Oddo, told the New York
Sun.
"This shouldn't happen. It really boggles the mind," Rachel Ehrenfeld,
director of the American Center for Democracy told the New York paper. She
said the United Arab Emirates is "a big hub for all kinds of terrorist
activities. ... We know that terrorist money is being laundered there."
Sen. Charles Schumer, D-N.Y., also spoke out against the merger, which is
scheduled to be finalized March 2.
"Should we be outsourcing our own security?" Schumer said on the Fox News
Channel. "We have to have hands-on control of things. And to have United
Arab Emirates I mean, they are a country that's allied with the U.S., but at
the same time a whole bunch of the (September 11) hijackers came from the
United Arab Emirates."
Continued Schumer: "I think there ought to be a full and public review before
this company is allowed to control security up and down the East Coast. The
issue is not the head of the company. I'm sure he's been checked out. But
how good is their security? How good do they check on their employees?
Could people infiltrate this company a lot more easily than they could
infiltrate an American company?"
Monday, Schumer called on the Secretary of Homeland Security Michael
Chertoff to review the deal. It was OK'd by the Committee on Foreign
Investment in the United States, a federal panel composed of the secretaries
of 12 federal agencies. Dubai Ports World said in a statement the committee
"thoroughly reviewed the potential transaction and concluded they had no
objection."
The senator claimed the committee's approval "seems to have been
unnecessarily fast-tracked." Other's have called it a rubber stamp for the
Bush administration.

Last month, the White House appointed a senior Dubai Ports World
executive, David C. Sanborn of Virginia, to be the new administrator of the
Maritime Administration of the Transportation Department, the Associated
Press reported.
According to the Sun, Ali Al-Ahmed, director of the Institute for Gulf Affairs,
noted the United Arab Emirates "has been fueling the insurgency in Iraq.
They have hosted a lot of the Sunni insurgent supporters and Sunni
insurgents.
"If they're allowing this to happen in their country al-Qaida activities and
Sunni insurgent in Iraq activities why shouldn't they allow it in New York,
where it's going to be more and more valuable?"
Other analysts are less alarmed.
"Does this pose a national security risk? I think that's pushing the envelope,"
Stephen E. Flynn, who studies maritime security at the New York-based
Council on Foreign Relations, told AP. "It's not impossible to imagine one
could develop an internal conspiracy, but I'd have to assign it a very low
probability."
There are several 9-11 connections to the United Arab Emirates. Many of the
hijackers entered the U.S. via UAE, much of the attack's planning was done
there, and the FBI says money for the operation was transferred to the
hijackers primarily through the UAE's banking system.
Do we really want our major ports in the hands of an Arab country where alQaida recruits, travels and wires money?
"We should be improving port security in an age of terrorism, not outsourcing
decisions to the highest bidder. The ports are thought to be the country's
weakest homeland-security link, with good reason. Only a fraction of the
nation's maritime cargoes are inspected.
"President Bush should overrule the committee to reject this deal. If that
doesn't happen, Congress should take action. The country's ports should not
be owned by foreign governments; much less governments whose territories
are favored by al-Qaida."

Israel slams Putin for invitation to

Hamas
Russian leader urged to give Hamas cold shoulder till it renounces violence
http://www.msnbc.msn.com/id/11277879/from/RS.4/
JERUSALEM - An Israeli Cabinet minister on Friday accused Russian President Vladimir Putin
of stabbing Israel in the back for inviting Hamas militants to Moscow following their
decisive victory in Palestinian elections.
The invitation Russias latest attempt to assert itself in Mideast diplomacy represented
a break with the U.S. and European position of not dealing with Hamas until it renounces
violence and recognizes Israels right to exist. Putin further angered Israel on Thursday by
saying he did not consider Hamas, which has killed hundreds of Israelis in suicide attacks, to
be a terrorist group.
In Washington, Secretary of State Condoleezza Rice urged Russian Foreign Minister Sergey
Lavrov on Friday to send a clear, strong message in any meetings with Hamas officials that
the militant group must stop terror attacks on Israel.
Despite the controversy, France expressed hope the Russian overture could help lead Hamas
toward acceptance of a two-state solution to the Israeli-Palestinian conflict. But Foreign
Ministry spokesman Denis Simonneau reiterated that the Palestinian militant group must
renounce violence and recognize Israel.
'International scandal'
In an interview with The Associated Press, Israeli Cabinet Minister Meir Sheetrit of the
centrist Kadima Party called Putins remarks an international scandal that amounted to
stabbing Israel in the back. His comments were echoed by other senior Israeli politicians.
Russia is a member of the so-called Quartet of Mideast peace negotiators, along with the
U.S., the European Union and the United Nations. The Quartet is the main sponsor of the
road map peace plan, which calls on the Palestinians to disarm militant groups like Hamas
as a step toward creating an independent state.
Sheetrit said the Russian invitation tainted Moscows attempts at being a Mideast mediator.
Russia should be removed from any negotiations in the Middle East, said Sheetrit, who is a
close ally of acting Prime Minister Ehud Olmert, the front-runner in Israeli elections
scheduled for March.

Love-hate relationship
Israel has a complex history with Russia. The former Soviet Union supported Israel in its
early years, but relations soon deteriorated as Israel increasingly allied itself with the United
States.
Moscow cut ties with Israel at the time of the 1967 Middle East War, and backed Israels
Arab enemies for decades. The Soviets also barred Jews from leaving the country, jailing
many who sought to emigrate to Israel.
As the Soviet Union was collapsing in the early 1990s, the two nations restored ties, and
relations warmed as Moscow loosened its emigration restrictions. More than a million
Russian speakers now live in Israel.
In recent years, Israel has quietly moved to upgrade anti-terror cooperation with Moscow in
the wake of attacks by Muslim separatists in the breakaway republic of Chechnya.
Putin, I believe, would feel very bad if Israel would invite the Chechen organizations of
terror into Israel and give them legitimacy, Sheetrit said.
Israeli leaders across the political spectrum voiced similar views.
Former Prime Minister Benjamin Netanyahu, leader of the hard-line Likud Party, said he sent
a letter to Putin asking him to cancel the invitation. I think such a thing will in general give
legitimacy to international terror and, specifically, the rise of Islamic terror, Netanyahu said
on Channel 2 TV.
Hamas at the helm
Ismail Haniyeh, a Hamas leader in the Gaza Strip, welcomed the Russian initiative. We
think countries in power can decide for themselves what kinds of positions and policies they
can take, Haniyeh said Friday.
Haniyeh said Hamas would accept the invitation, though a date for a visit hasnt been set.
Hamas has so far rejected calls to moderate its violent ideology, despite threats from Europe
and Washington that tens of millions of dollars of vital aid could be in jeopardy.
Russian Defense Minister Igor Ivanov said Friday his country was not happy with Hamas
ideology, but the group was elected in a democratic poll. After winning a majority of seats in
last months parliamentary vote, Hamas is poised to form a new Palestinian government in
the coming weeks.
Hamas is in power, this is a fact, Ivanov told reporters at a meeting of NATO defense
ministers in Taormina, Sicily. Sometime in the future, many leading states will start
supporting Hamas and have some contacts.

Iran leader threatens to pull out of

nuke treaty
On revolution anniversary, Ahmadinejad rejects pressure from West
http://www.msnbc.msn.com/id/11286133/
TEHRAN, Iran - The Iranian president on Saturday rejected Western pressure to freeze the
country's nuclear program and issued a veiled threat to walk away from the Nuclear
Nonproliferation Treaty.
In a speech of tens of thousands of Iranians massed in Azadi Square in the Iranian capital to
mark the 27th anniversary of the Islamic Revolution which brought a Muslim theocracy to
power, hard-line President Mahmoud Ahmadinejad also said that the true Holocaust was
happening now in the Palestinian territories and Iraq.
He has declared the Nazi slaughter of 6 million Jews during World War II was a "myth" and
that Israel should be "wiped off the map," prompting worldwide outrage.
But the focus of his speech was the building crisis surrounding the country's disputed
nuclear program.
"The nuclear policy of the Islamic Republic so far has been peaceful. Until now, we have
worked inside the agency (International Atomic Energy Agency) and the NPT (Nuclear
Nonproliferation Treaty) regulations.
"If we see you want to violate the right of the Iranian people by using those regulations
(against us), you should know that the Iranian people will revise it's policies. You should do
nothing that will lead to such a revision in our policy," said Ahmadinejad.
'The West is hiding its ugly face'
He did not specify what changes Tehran envisioned, but it was believed to be a threat to
withdraw from the NPT and the IAEA.
"The West is hiding its ugly face behind international bodies, but these bodies have no
reputation among nations. You have destroyed the reputation of the NPT," the Iranian
president said.
Ahmadinjad has not relented in attacking Israel and recently a Tehran newspaper
announced it was holding a contest for caricatures of the Holocaust.
"If you want to find the real Holocaust, you will find it in Palestine where s kill Palestinians
everyday. You will find it in Iraq," he said.

He also charged that what he termed "s" were behind the publication of caricatures of the
Prophet Muhammad which has prompted a series of global demonstrations by angry
Muslims and attacks on Western embassies, primarily those of Scandinavian countries.
"I ask everybody in the world not to let a group of s who failed in Palestine (referring to the
recent Hamas victory in Palestinian elections) insult the prophet.
"Now in the West insulting the prophet is allowed, but questioning the Holocaust is
considered a crime," he said. "We ask, why do you insult the prophet? The response is that
it is a matter of freedom, while in fact they (who insult the founder of Islam) are hostages
of the s. And the people of the U.S. and Europe should pay a heavy price for becoming
hostages to s," he declared.
Annan urges negotiations to continue
Ahmadinejad appeared in part to be responding to a call on Thursday by U.N. SecretaryGeneral Kofi Annan for Iran to restore a freeze on its nuclear activities and pursue talks to
shift its uranium enrichment program to Russia.
While Iran's nuclear program has been formally reported to the U.N. Security Council,
Annan said what's important is that the Iranians and the Europeans who have been trying to
resolve the nuclear dispute have said "negotiations are not dead ... and they are prepared
to talk."
"And I would urge them to continue," Annan said.
"And I hope Iran will continue to freeze its activities, the way they are now, to allow talks to
go forward, to allow them to pursue the Russian offer, and to allow negotiations with the
European three and the Russians to come back to the table," Annan said.
Britain, Germany and France have led months of futile talks on behalf of the 25-nation
European Union amid suspicions that Iran's civilian nuclear program is aimed at producing
nuclear weapons -- not electricity as Tehran insists.
Tensions started escalating last month after Iran removed U.N. seals and began nuclear
research, including small-scale uranium enrichment.
On Feb. 11, the International Atomic Energy Agency's board voted to send Iran's nuclear file
to the Security Council, saying it lacked confidence in Tehran's nuclear intentions and
accusing Iran of violating the Nuclear Nonproliferation Treaty.
Iran responded by ending voluntary cooperation with the U.N. nuclear watchdog agency and
announcing it would start uranium enrichment and bar surprise inspections of its facilities.

But the Islamic republic left the door open for further negotiations over its nuclear program,
saying it was willing to discuss Moscow's proposal to shift large-scale enrichment operations
to Russian territory in an effort to allay suspicions.
High-level talks on the proposal are scheduled to begin in Moscow on Feb. 16, but Russia
says it still awaits word from Tehran. The proposal is backed by the United States and the
European Union as a way to provide additional oversight of Iran's use of atomic fuel.
After years of opposition, Russia and China backed sending the Iran nuclear file to the
Security Council. But in return, Moscow and Beijing demanded that the United States,
France and Britain agree to let the Iran issue rest until March when the IAEA board meets to
review the agency's investigation of Iran's nuclear program and compliance with board
demands that it renounce uranium enrichment.
Annan said the IAEA report was expected at the end of the month.
2006

Death toll from Katrina likely higher

than 1,300
Number of bodies found offers only partial indicator of deaths, experts say
http://www.msnbc.msn.com/id/11281267/
NEW ORLEANS - Nearly six months after Hurricane Katrina, more than 1,300 bodies have
been found, but the real death toll is clearly higher. How much higher, no one can say with
any certainty.
Hundreds of people are still unaccounted for, and some of them again, no one is sure how
many were probably washed into the Gulf of Mexico, drowned when their fishing boats
sank, swept into Lake Pontchartrain or alligator-infested swamps, or buried under crushed
homes, said Dr. Louis Cataldie, Louisiana medical examiner.
Cataldie noted that coffins, disgorged from the earth by the floodwaters, have been found
great distances from their graveyards, and if we have coffins that have washed 30 miles
away, I can assure you there are people who have.
The likelihood is there are people we will not find, he said.
New Orleans Coroner Frank Minyard said a final sweep of homes in the devastated Ninth
Ward will be done this month with help from federal officials. After that, he said, any more
bodies found will probably be discovered in out-of-the-way places by hunters or fishermen.

But neither he nor Cataldie would venture a guess as to how many how many undiscovered
victims are out there.
300 sought after in Louisiana
The remains of 1,079 people have been recovered in Louisiana; an additional 231 were
found in Mississippi. But Louisiana officials have information on roughly 300 people whose
loved ones are desperately searching for them, months after the Aug. 29 storm struck the
Gulf Coast and scattered the regions residents.
I have people trying to close estates. I have lawyers calling me. I have people calling me,
saying, Do you have my momma? Cataldie said.
About 90 bodies remain unidentified at the morgue. In some cases, they will be identified
and removed from the list of the 300 or so missing, but that could still leave hundreds
unaccounted for, Cataldie said.
The list of those reported missing to the Find Family National Call Center, run by state and
federal officials in Baton Rouge, has about 2,300 people on it. Some have already been
found but have not been taken off the list because family members have not notified
authorities. Others are on the lam, wanted for a crime or child support payments.
But it is the others who have not been seen or heard from by family members that Cataldie
worries he will never have answers for.
Of the 2,300 on the list, most are from New Orleans, and nearly three-quarters are black.
Before Hurricane Katrina, about two-thirds of New Orleans was black. Of the 668 Louisiana
dead identified and released by the morgue, three-quarters were from New Orleans. About
half were black, and 44 percent were white.
Denise Herbert, who waited months before hearing last month that her missing 82-year-old
mother had been identified at the morgue, said it was a heartbreaking ordeal. How would
you feel if you didnt know where your mother was for one day? Imagine 4 months, she
said.
Legal issues remain unresolved
In addition to the stress and uncertainty for the loved ones, the lack of a body can prevent
the settling of estates, the transfer of property titles and the payout of insurance benefits.
Family members can obtain a court order declaring a missing person dead, if they can offer
sufficient proof.
Susan Burkenstock, a New Orleans lawyer who chairs the Louisiana Bar Associations estates
and probate section, said that so far, she has heard of few Katrina-related cases where
families have sought such a declaration. But she said that is not surprising.

Families often take several months to take legal action after tragedies, Burkenstock said:
They dont really know what to do.

Hospital says Ariel Sharons

condition worsens
Israeli PMs life is in danger as he undergoes emergency surgery
http://www.msnbc.msn.com/id/11285582/
JERUSALEM - Ariel Sharon underwent emergency surgery Saturday after an abdominal scan
revealed severe damage to his digestive tract, and hospital officials said his life was in
danger.
Sharon, 77, suffered a severe stroke Jan. 4 and has been in a coma since then. Earlier this
month, a feeding tube was inserted, suggesting doctors were preparing him for long-term
care.
An abdominal scan Saturday revealed problems with the blood flow to his intestines and
that his digestive tract had suffered severe damage, said Yael Bossem-Levy, spokeswoman
for the Hadassah Ein-Kerem Hospital.
After the scan, it was decided to operate on Sharon immediately, Bossem-Levy said in a
statement. The operation began at about 11:30 a.m. Saturday and was to last between
three and six hours, she said.
Sharons life is in danger, Bossem-Levy told The Associated Press in a phone call after the
statement was issued. His condition is now very serious, or critical, she said.
Family members rush to hospital
Sharons son Omri rushed to the hospital Saturday morning, and other family members
were on their way.
Sharon had been stable for the past five weeks, but his condition worsened before dawn
Saturday, the hospital said.
He has undergone brain scans from time to time to check whether there was swelling and
bleeding. The brain scans have shown no changes.
Sharon suffered the stroke a day before he was to check into Hadassah for what was
described as a minor heart procedure. The major stroke came two weeks after he had
suffered a mild stroke.

Severe stroke
Some have questioned whether doctors should have treated Sharon with massive doses of
anticoagulants after his first stroke, which was caused by a small blood clot in a cranial
artery. Doctors admitted that the anticoagulants made it more difficult for them to stop the
bleeding from the later stroke.
The extensive bleeding and the lengthy operations Sharon underwent to stop it have led
experts to conclude that he must have suffered severe brain damage and was unlikely to
regain consciousness. If he does awaken, most say, the chances of his regaining meaningful
cognition or activity are slim.
Sharons stroke jolted Israel, which is gearing up for an election on March 28. The centrist
Kadima Party that Sharon formed has a strong lead in the polls, which has not changed
since his stroke. Sharon left the Likud Party to gain a free hand in negotiations with the
Palestinians.
Sharon had fought Likud hardliners to carry out the withdrawal from the Gaza Strip, which
was completed in September.
With the pullout, Sharon shifted to the center of the Israeli political spectrum, winning the
support of many doves and ostracizing many hawks who believed that the architect of
Israels settlement project had betrayed them. The decision has proven to be hugely
popular, winning Kadima at least 40 out of 120 seats in the parliament in polls.
A war hero, Sharon had for years opposed concessions to the Palestinians. He came to
accept the idea of giving land to the Palestinians and allowing them to form a state only
during his most recent term as prime minister, which began in 2001.
Israeli Prime Minister Ariel Sharon in a Dec. 15, 2003, file photo.

Labor ("Avoda" in Hebrew)

Philosophy/Guiding principles
This left-of-center party is known for its dovish policies when it comes to peace negotiations,
including a willingness to implement land-for-peace deals with the Palestinians. Its members
tend to be secular and the party is a strong supporter of the countrys welfare state.
Past leaders included former prime ministers Yitzhak Rabin, Ehud Barak and Shimon Peres.
Key figure
Amir Peretz, 53, was elected party leader in November 2005, ahead of Shimon Peres. He
ran on a platform of returning the party to its original socialist roots and, when elected,
pulled the party out of the coalition government. The move, in part, prompted Prime
Minister Sharon to call early elections, now scheduled for March 2006. Born in Morocco,
Peretz is particularly popular with the countrys working class, who are drawn to his beliefs
in a welfare state.

Likud ("Consolidation" in English)

Philosophy/Guiding principles
This right-of-center party is perhaps best known for its belief in a Greater Israel that
includes the West Bank and Gaza and, more recently, for its strong opposition to Israels
2005 pullout from Gaza. With opposition raging in the party he helped found in 1973, Prime
Minister Sharon left the party at the end of 2005 and started a new party, Kadima, bringing
with him many of the partys most prominent figures, including former Jerusalem mayor
Ehud Olmert, who became interim prime minister after Sharons stroke. The party is
economically liberal; during his time as finance minister, party leader Benjamin Netanyahu
implemented free-market reforms aimed at undoing some of the countrys generous social
programs.
Past party leaders include Menachem Begin, who signed Israels 1978 peace agreement with
Egypt, and Yitzhak Shamir.
Key figures
Benjamin Netanyahu, 56, assumed the party leadership after Sharon left to form Kadima. A
former prime minister, Netanyahu strongly opposed the Gaza pullout and resigned his post
as finance minister in protest.
Foreign Minister Slivan Shalom is now the partys No. 2, having narrowly lost internal
elections to Netanyahu. He has also held the post of finance minister and is one of the few
senior Likud politicians not to bolt to Kadima.

Kadima ("Forward" in Hebrew)

Philosophy/Guiding principles
Kadima, Israels newest major party, was founded in November 2005 by Sharon. With many
Likud members opposing his view that Israel needed to disengage from Gaza and parts of
the West Bank, Sharon was in danger of losing the party leadership; his opportunity to
begin anew came when the Labor Partys newly elected leader, Amir Peretz, ordered his
ministers to quit the government, forcing new elections -- and giving Sharon the chance for
a new start. Billing itself as centrist, the party attracted other leading politicians, including
former Labor leader Shimon Peres, Ehud Olmert (now the acting prime minister) and justice
minister Tzipi Livni.
Key figures
Acting Prime Minister Ehud Olmert, 60, a longtime Likud stalwart and the former mayor of
Jerusalem, served as finance minister after Netanyahu resigned in August 2005. He was
among the first politicians to leave Likud for Kadima. A former hawk, he now supports
further disengagement from the West Bank.
Tzipi Livni, the only woman in Sharons inner circle, is recognized as a possible leader of the
party and a challenger to Ehud Olmert for prime minister. The justice minister and a former

immigration minister was one of the more dovish members of Likud before her defection to
Kadima.
Former Prime Minister Shimon Peres, 82, was once Sharons biggest non-Likud political rival
before becoming his partner when Sharon decided that the dream of a Greater Israel was no
longer compatible with the nations survival. Long one of Israels most high-profile
politicians, Peres has said he will not run for prime minister in the March election.
Other parties
Shinui
This centrist party became the third largest party in Israel after the 2003 election, with just
four fewer seats in the Knesset than Labor. But the formation of Kadima last year undercut
Shinuis middle-class support base and leader Yosef Tommy Lapid quit in January. The
party focuses its efforts on promoting the separation of religion and state. It also supports
the creation of a Palestinian state provided the Palestinians renounce the right of return
(to homes they were displaced from during the creation of Israel) and with key settler blocs
integrated into Israel. Shinui is economically liberal.
Shas
Shas is the countrys most powerful religious party and is mostly made up of Sephardic
Jews. It strongly champions a religious state, religious education and state social programs;
meanwhile, its views on the peace process have been more flexible. The party leader, Eli
Yishai, took over after the previous leader was convicted on corruption charges. Former
Sephardic Chief Rabbi Ovadyah Yosef, also a renowned authority on Jewish law, is the
partys influential spiritual leader.
National Union
This right-wing party is, in essence, a coalition of three smaller parties and enjoys strong
support from Israels sizeable Russian immigrant population. Led by Avigdor Lieberman, it is
strongly opposed to land-for-peace deals -- including the road map -- and has suggested a
voluntary transfer of the Palestinians. It also strongly supports the settlements.
Economically, it backs a free market economy.
National Religious Party
This hawkish party is led by former military commander Effi Eitam. With heavy support
from settlers, it is against a Palestinian state and opposed the disengagement from Gaza in
August 2005. It heavily promotes a religious state and supports state-funded religious
education

Paper: Coast Guard Has Port Co. Intel Gaps

http://news.yahoo.com/s/ap/20060227/ap_on_go_ot/ports_security
WASHINGTON - Citing broad gaps in U.S. intelligence, the Coast Guard cautioned the Bush
administration weeks ago that it could not determine whether a United Arab Emirates-based company
seeking a stake in some U.S. port operations might support terrorist operations.

The disclosure came during a hearing Monday on Dubai-owned DP World's plans to take over significant
operations at six leading U.S. ports.
The Bush administration said the Coast Guard's concerns were raised during its review of the deal, which
it approved Jan. 17, and that all those questions were resolved.
The port operations are now handled by London-based Peninsular & Oriental Steam Navigation Co.
"There are many intelligence gaps, concerning the potential for DPW or P&O assets to support terrorist
operations, that precludes an overall threat assessment" of the potential merger, the unclassified Coast
Guard intelligence assessment said.
"The breadth of the intelligence gaps also infer potential unknown threats against a large number of
potential vulnerabilities," the assessment said.
The Coast Guard said the concerns reflected in the document ultimately were addressed. In a statement,
the Coast Guard said other U.S. intelligence agencies were able to provide answers to the questions it
raised.
"The Coast Guard, the intelligence community and the entire CFIUS (Committee on Foreign Investments
in the United States) panel believed this transaction received the proper review, and national security
concerns were, in fact, addressed," the Coast Guard said.
That multi-agency government panel reviews foreign purchases of vital U.S. assets.
The report raised questions about the security of the companies' operations, the backgrounds of people
working for the companies, and whether other foreign countries influenced operations that affect security.
Sen. Susan Collins (news, bio, voting record), chairman of the Senate
"Homeland Secur

c1,i,yn,c3

<p style="font-fam <p><strong>SEA

Homeland Security Committee, released an unclassified version of the document at a briefing Monday.
The Bush administration agreed Sunday to DP World's request for a second review of the potential
security risks related to the deal.

Congressional leaders who brokered the arrangement for a second review hoped it would defuse a
bipartisan political uproar over port security and scuttle any push for legislation this week that would force
such an investigation and could embarrass
"President Bush"

c1,i,yn,c3

<p style="font-fam <p><strong>SEA

President Bush.
Senators introduced several bills Monday anyway, even though Senate Majority Leader Bill Frist, R-Tenn.,
told reporters in Detroit, "I don't think it's necessary to legislate."
Criticism persisted from both Republicans and Democrats.
"This report suggests there were significant and troubling intelligence gaps," said Collins, R-Maine. "That
language is very troubling to me."
Appearing before the Collins committee, administration officials defended their decision not to trigger a
45-day review of national security implications of the business transaction following their initial review.
"In this case, the concerns that you're citing were addressed and resolved," Clay Lowery, the
"Treasury Depart

c1,i,yn,c3

<p style="font-fam <p><strong>SEA

Treasury Department's assistant secretary for international affairs, told Collins. "There were no national
security concerns that were not addressed."
The Coast Guard indicated to The Associated Press that it did not have serious reservations about the
ports deal on Feb. 10, when the news organization first inquired about potential security concerns.
"Any time there's a new operator in a port our concern would be that that operator has complied with the
(International Ship and Port Facility Security) ISPS code overseas and we just want to take a look at their
track record," Cmdr. Jeff Carter, Coast Guard spokesman, said at the time. "And then we would look
forward to working with them in the future ensuring they complied with all applicable regulations and
international agreements," he added.
Stewart Baker, an assistant secretary for the Homeland Security Department, told lawmakers that the
report was an internal Coast Guard document that the interagency panel that reviews foreign investment
deals did not see. However, Baker said, he was aware of the Coast Guard concerns.
"I think it's a little unfair to judge this report by one paragraph that happens not to be classified," Baker
said. "This paragraph is not really representative of the entire report."
"I think the paragraph speaks for itself," Collins responded before adjourning the public hearing for a
closed session to explore the issue further.

Also Monday, a bipartisan group of senators introduced a bill that would delay the deal and give Congress
an opportunity to block the takeover. The group did not plan to push for a vote yet.
"We're in a position now of watchful waiting," said Sen. Charles Schumer (news, bio, voting record), DN.Y. "If we feel the need, we will get a vote."
Other Democrats introduced legislation to ban companies owned by foreign governments from controlling
operations at U.S. ports. At the White House, governors from across the country met privately with Bush,
and several participants said the ports issue was brought up.
The Justice Department said the Bush administration's decision to investigate potential security risks in
the DP World deal renders irrelevant the state of New Jersey's federal lawsuit aimed at blocking the
company from assuming operations at the Port Newark container terminal.

Homeland Security first objected to

ports deal
Compromise in works to avoid having deal for UAE company blocked
http://www.msnbc.msn.com/id/11562905/
WASHINGTON - The Homeland Security Department objected at first to a United Arab
Emirates companys taking over significant operations at six U.S. ports. It was the lone
protest among members of the government committee that eventually approved the deal
without dissent.
The departments early objections were settled later in the governments review of the $6.8
billion deal after Dubai-owned DP World agreed to a series of security restrictions.
Senate Majority Leader Bill Frist and other congressional leaders, the company and Bush
administration officials were working on a compromise intended to derail plans by
Republicans and Democrats for legislation next week that would force a new investigation of
security issues relating to the deal. Talks were to continue through the weekend.
My comfort level is good, but I have 99 other United States senators who need the
opportunity to ask their questions, Frist told the Lexington Herald-Leader before speaking
at a Republican dinner Saturday evening in Lexington, Ky.
Were behind the president 100 percent, he added. We believe the decision in all
likelihood is absolutely the right one.
Under one proposal being discussed, DP World would seek new approval of the deal from
the Committee on Foreign Investment in the United States, given the companys surprise
decision Thursday to indefinitely postpone its takeover of U.S. port operations. Other
proposals included a new, intensive 45-day review of the deal by the government
something the White House had refused to consider as recently as Friday.
Push for 45-day investigation
Rep. Peter King, chairman of the House Homeland Security Committee, said discussions
among congressional leaders centered on that issue. Its my understanding that they are
trying to build support for a deal involving a new 45-day investigation, he said.
Frist, R-Tenn., said that while legislation may not be necessary now, having 30 to 45 days
to step back and evaluate the deal still could be necessary.

If theres some question about the diagnosis, then maybe we need to get a second
opinion, said Frist, a former heart surgeon.
King, R-N.Y., said he would need to see all the details of a compromise before deciding if it
met all of his concerns, or met the demands of the legislation he planned to offer.
Despite persistent criticism from Republicans and Democrats, the president has defended
his administrations approval of the ports deal and threatened to veto any measures in
Congress that would block it. The companys voluntary delay in taking over most operations
at the six U.S. ports did little to quell a political furor or appease skeptical members of
Congress that the deal does not pose any increased risks to the U.S. from terrorism.
Republican House and Senate leaders are to meet Tuesday to discuss how to proceed.
Company declines comment
The company declined Saturday to discuss any potential compromise that may be in the
works.
A DP World executive said the company would agree to tougher security restrictions to win
congressional support only if the same restrictions applied to all U.S. port operators. The
company earlier had struck a more conciliatory stance, saying it would do whatever Bush
asked to salvage the agreement.
Security is everybodys business, senior vice president Michael Moore told The Associated
Press. Were going to have a very open mind to legitimate concerns. But anything we can
do, any way to improve security, should apply to everybody equally.
The administration approved the ports deal on Jan. 17 after DP World agreed during secret
negotiations to cooperate with law enforcement investigations in the future and make other
concessions.
Some lawmakers have challenged the adequacy of a classified intelligence assessment
crucial to assuring the administration that the deal was proper. The report was assembled
during four weeks in November by analysts working for the director of national intelligence.
The report concluded that U.S. spy agencies were unable to locate any derogatory
information on the company, according to a person familiar with the document. This person
spoke only on condition of anonymity because the report was classified.
Sen. Carl Levin, D-Mich., and others have complained that the intelligence report focused
only on information the agencies collected about DP World and did not examine reported
links between UAE government officials and al-Qaida leader Osama bin Laden before the
Sept. 11 attacks.

Shedding light on the process

The uproar over DP World has exposed how the government routinely approves deals
involving national security without the input of senior administration officials or Congress.
President Bush, Homeland Security Secretary Michael Chertoff, Defense Secretary Donald H.
Rumsfeld and even Treasury Secretary John Snow, who oversees the government
committee that approved the deal, all say they did not know about the purchase until after
it was finalized. The work was done mostly by assistant secretaries.
Snow now says he may consider changes in the approval process so lawmakers are better
alerted after such deals get the go-ahead.
Stewart Baker, a senior Homeland Security official, said he was the sole representative on
the Committee on Foreign Investment in the United States who objected to the ports deal.
Baker said he later changed his vote after DP World agreed to the security conditions. Other
officials confirmed Bakers account.
We were not prepared to sign off on the deal without the successful negotiation of the
assurances, Baker told the AP.
Officials from the White House, CIA, departments of State, Treasury, Justices, and others
looked for guidance from Homeland Security because it is responsible for seaports. We had
the most obvious stake in the process, Baker said.
Audit not yet completed
Baker acknowledged that a government audit of security practices at the U.S. ports in the
takeover has not been completed as part of the deal. We had the authority to do an audit
earlier, Baker said.
The audit will help evaluate DP Worlds security programs to stop smuggling and detect
illegal shipments of nuclear materials at its seaport operations in New York, New Jersey,
Baltimore, New Orleans, Miami and Philadelphia.
The administration privately disclosed the status of the security audit to senators during
meetings about improving reviews of future business deals involving foreign buyers. Officials
did not suggest the audits earlier completion would have affected the deals approval.
New Jerseys Democratic governor, who is suing to block the deal, said in his partys weekly
radio address on Saturday that the administration failed to properly investigate the UAEs
record on terrorism.
We were told that the president didnt know about the sale until after it was approved. For
many Americans, regardless of party, this lack of disciplined review is unacceptable, Jon
Corzine said.

A federal judge in New Jersey has ordered the government to file a written response to
Corzines suit by Monday and scheduled a hearing for Wednesday.
Bushs national security adviser, Stephen Hadley, said there was no going back on the deal.
2006

President Discusses Port Security

http://www.whitehouse.gov/news/releases/2006/02/200
60221-2.html
THE PRESIDENT: I've just come back from a really good trip to the Midwest and the West talking about
our need to change how we use energy -- very encouraged by the technology that I saw and inspired by
the scientists and engineers that are working on these new technologies.
And I also want to address another issue I just talked to the press about on Air Force One, and that is this
issue of a company out of the UAE purchasing the right to manage some ports in the United States from a
British company. First of all, this is a private transaction. But it -- according to law, the government is
required to make sure this transaction does not, in any way, jeopardize the security of the country. And so
people responsible in our government have reviewed this transaction.

http://www.whitehouse.gov/news/releases/2006/02/images/20060221-2_p022106kh0071-515h.html
The transaction should go forward, in my judgment. If there was any chance that this transaction would
jeopardize the security of the United States, it would not go forward. The company has been cooperative
with the United States government. The company will not manage port security. The security of our ports
will be -- continue to be managed by the Coast Guard and Customs. The company is from a country that
has been cooperative in the war on terror, been an ally in the war on terror. The company operates ports
in different countries around the world, ports from which cargo has been sent to the United States on a
regular basis.
I think it sends a terrible signal to friends around the world that it's okay for a company from one country
to manage the port, but not a country that plays by the rules and has got a good track record from another
part of the world can't manage the port.
And so, look, I can understand why some in Congress have raised questions about whether or not our
country will be less secure as a result of this transaction. But they need to know that our government has
looked at this issue and looked at it carefully. Again, I repeat, if there was any question as to whether or
not this country would be less safe as a result of the transaction, it wouldn't go forward. But I also want to
repeat something again, and that is, this is a company that has played by the rules, that has been
cooperative with the United States, a country that's an ally in the war on terror, and it would send a terrible
signal to friends and allies not to let this transaction go through.
I want to thank you for your interest in the subject.

GOP governors join port control

debate
Govs. Pataki, Ehrlich question putting Arab-owned company in charge
http://www.msnbc.msn.com/id/11188272/

WASHINGTON - Two Republican governors on Monday questioned a Bush administration

decision allowing an Arab-owned company to operate six major U. S. ports, saying they may
try to cancel lease arrangements at ports in their states.
New York Gov. George Pataki and Maryland Gov. Robert Ehrlich voiced doubts about the
acquisition of a British company that has been running the U.S. ports by Dubai Ports World,
a state-owned business in the United Arab Emirates.
The British company, Peninsular and Oriental, runs major commercial operations at ports in
Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.
Ensuring the security of New Yorks port operations is paramount and I am very concerned
with the purchase of Peninsular & Oriental Steam by Dubai Ports World, Pataki said in a
news release.
I have directed the Port Authority of New York and New Jersey to explore all legal options
that may be available to them in regards to this transaction, said the New York governor,
who is still in the hospital recovering from an appendectomy.
No advance word
Ehrlich, concerned about security at the Port of Baltimore, said Monday he is very troubled
that Maryland officials got no advance notice before the Bush administration approved an
Arab companys takeover of the operations at the six ports.
We needed to know before this was a done deal, given the state of where we are
concerning security, Ehrlich told reporters in the State House rotunda in Annapolis.
The state of Maryland is considering its options, up to and including voiding the contract for
the Port of Baltimore, Ehrlich said, adding: We have a lot of discretion in the contract.
Pataki is also asking the federal government to share all critical relevant information made
available to the Council on Foreign Investment during the course of the review of the
purchase, a reference to the federal panel that approved the deal.

New Yorks legal options could include canceling the lease for operation, effectively shutting
out Dubai Ports World from port activities. P&O signed a 30-year lease with the Port
Authority of New York and New Jersey in 2000 to operate the Port Newark Container
Terminal.
The governors are the latest elected officials from both parties to complain about the deal.
House Homeland Security chairman Peter King, R-N.Y., has been one of the most vocal,
saying secret assurances obtained by the government dont go far enough to protect the
nations seaports.
Democratic New Jersey Sen. Robert Menendez joined the chorus of complaints on Monday.
We wouldnt turn over our customs service or our border patrol to a foreign government,
Menendez said during a Monday news conference in Newark. We shouldnt turn over the
ports of the United States, either.
Very extensive process
Menendez said he and Sen. Hillary Rodham Clinton, D-N.Y., will introduce legislation
prohibiting the sale of port operations to foreign governments.
Bush administration officials, including Homeland Security Secretary Michael Chertoff and
Attorney General Alberto Gonzales, have defended the decision.
During a stop Monday in Birmingham, Ala., Gonzales said the administration had a very
extensive process for reviewing such transactions that takes into account matters of
national security, takes into account concerns about port security.
Critics have cited the UAEs history as an operational and financial base for the hijackers
who carried out the attacks of Sept. 11, 2001. In addition, they contend the UAE was an
important transfer point for shipments of smuggled nuclear components sent to Iran, North
Korea and Libya by a Pakistani scientist.
Frustration about the ports takeover put two Maryland gubernatorial candidates on the
same side of an issue.
During a campaign stop in Bladensburg, Md., Monday, Baltimore Mayor Martin OMalley was
adamant that the operations of his citys port not be turned over to the Arab-owned
company.
I believe that Presidents Bushs decision to turn over the operations of any American port
is reckless, said OMalley, who is seeking the Democratic nomination to oppose Ehrlich in
the Maryland governors race. We are not going to turn over the Port of Baltimore to a
foreign government.

 2006

Homeland Insecurity
Leadership vacuums and ongoing turf fights are hampering government efforts to
control U.S. borders.
http://www.msnbc.msn.com/id/10469582/site/newsweek/from/RL.3/
Dec. 14, 2005 - One of the main reasons Congress goaded the administration into setting
up a Department of Homeland Security was to consolidate agencies responsible for
controlling the flow of people and goods across U.S. borders. But bureaucratic infighting and
political squabbles have put these agencies in a state of disarray and left them without
permanent leadership.
Of three key Homeland Security agencies responsible for U.S. border securitythe Bureaus
of Customs and Border Protection (CBP), Citizenship and Immigration Services (CIS) and
Immigration and Customs Enforcement (ICE)none currently has a permanent chief. In the
case of CBP, the commissioner left recently and the White House has not yet named a
replacement. In the case of ICE, home to some of the Federal governments most skilled
plainclothes investigators, confirmation of President Bushs nominee was delayed after
congressional Democrats questioned her qualifications. Congress is also moving slowly on
the nomination of a new chief for CIS.
Two of these agencies, CBP and ICE, have also been involved in a series of debilitating
financial and bureaucratic turf fights which have sapped morale and, in some cases,
allegedly come close to hampering day-to-day operations. Investigators working for ICE, for
instance, have complained for months about a financial crisis, allegedly the product of a
feud between former chiefs of ICE and CBP, which curbed the ability of ICE officials to make
even inexpensive out-of-town trips. Meanwhile, offices within the CBP bureau are tussling
with each other over who is going to control the bureaus substantial fleet of patrol boats
and planessome of which were recently transferred to CBP from ICE as part of an ongoing
effort by Homeland Security Secretary Michael Chertoff to restructure his departments
assets to make them work together more effectively.
When he took over the Department of Homeland Security earlier this year from predecessor
Tom Ridge, Chertoff announced he would review how the various pieces of his department
which combined more than 20 agencies from such diverse cabinet departments as Justice,
Treasury and Transportationfit together. Chertoffs aides acknowledge that this review
remains a work in progress and that the departments problems are not going to sort
themselves out overnight.
It takes time, says Brian Doyle, a Homeland Security spokesman. Do we wish we can do
it faster and better? You bet. We also want to do it the way we think it should be done.

Doyle acknowledged that political and bureaucratic obstacles are not making the Homeland
jigsaw puzzle easy to reassemble, but maintained nonetheless that Chertoffs effort to
reorganize the department is moving ahead fairly well.
One of the most obvious problems is a leadership vacuum at the top of all three key bordercontrol units. At CBP, a huge agency that includes paramilitary Border Patrol officers as well
as all uniformed customs and immigration inspectors at land, air and sea border posts, the
highly regarded commissioner, former federal judge and Drug Enforcement Agency chief
Robert Bonner, recently resigned. The White House has not yet named a replacement. At
CIS, which is responsible for processing applications for U.S. citizenship and residence
permitsincluding the famous immigration green cardsdirector Eduardo Aguirre left
earlier this year to become U.S. ambassador to Spain. The successor nominated by
president Bush, lawyer and former White House official Emilio T. Gonzalez, has yet to be
confirmed by Congress, though there is a remote possibility his nomination could reach the
Senate floor before the end of the year.
At ICE, whose staff is principally comprised of plainclothes investigators who formerly
worked either as Customs agents at Treasury or immigration agents at Justice, director
Michael Garcia left to become U.S. Attorney in Manhattan. But Senate confirmation of his
would-be replacement, Julie Myers, a White House official who also worked as an aide to
Chertoff when he headed the Justice Departments criminal division, has stalled with some
Democrats expressing concern about her qualifications, her political connections and her
possible knowledge of Justice Department deliberations over interrogation techniques used
on suspected terrorist detainees.
The agencies, meanwhile, have suffered from assorted internal crises. A financial dispute between ICE
and CBP, for instance, led to a hiring and training freeze inside ICE and to a funding crisis that, according
to officials who declined to be named because of the sensitivity of the topic, led to such severe travel
restrictions that investigators could not get authorization to make even short trips away from their offices
to interview key witnesses in criminal cases. Morale of ICE agents also suffered when Homeland Security
headquarters, during Ridges tenure as secretary, surrendered to the FBI authority to take the lead on
financial investigations related to terrorisma subject area in which former Customs investigators had
traditionally specialized.
ICE spokesman Dean Boyd says Congress recently alleviated the bureaus financial crisis by
doling out enough new funding to enable the agency to start hiring and training hundreds
of new investigators; the agency also now has enough money to pay its agents travel
expenses, Boyd says, though some investigators in the field have claimed that the new
funding has yet to reach down to the bureaucratic levels where it is actually needed. (Boyd
said that despite the now-eased funding crisis, ICE still managed to launch major campaigns
to crack down on hundreds of cases involving child porn and street gangs.)
As part of Chertoffs reorganization plan, ICE recently turned over to its rivals at CBP a fleet
of patrol boats and airplanes that the agency had principally used to chase drug smugglers
and illegal aliens. Now, however, there are arguments inside CBP over who is responsible for

maintaining and staffing the vehicles and who is responsible for sending them out on
missions. According to CBP spokesman Michael Friel, the agency recently hired a former Air
Force major general, Michael Kostelnik, to be assistant CBP commissioner in charge of air
and sea assets. But chiefs of local Border Patrol sectors are asserting authority to direct
CBP air or sea missions within their operating areas, and Friel says the agency is now trying
to work out who will control the vehicles under what circumstances.
Apart from these bureaucratic, financial and political problems, the border-control agencies
continue to face traditional problems of corruption and effectively managing the vast
amounts of data related to the entry of people and cargo into the country. In a report made
public in the last few days, the Homeland Security Departments inspector general
recounted how a tipoff from drug-enforcement agents had to the discovery that two Border
Patrol agents were running an illegal-alien smuggling operation which charged foreigners up
to $2,000 apiece for guaranteed entry into the United States. According to the report, the
smugglers used the Border Patrols own vehicles to smuggle the aliens into the country; it
later turned out that one of the crooked officers was also an illegal alien who had used fake
documents to get into the U.S. Navy and Border Patrol.
The same inspector general report identified deficiencies in an ICE program designed to
locate and capture foreigners who had violated the conditions of their admission into the
United States. One problem was that while Homeland Security is getting much better at
handling data logging the entry of people into the country, it lacks reliable data on people
leaving. So, according to the report, while ICE last year received more than 300,000 leads
on noncitizens who might have overstayed their visas, the agency had to close out more
than 138,000 of these cases when it turned out the person had already left the United
States. In the end, out of all the remaining leads, ICE only actually caught 671 aliens who
had overstayed; the inspector general predicted that of those, very few would actually be
deported unless they also have a criminal record.
Of all the indignities that have faced beleaguered Homeland Security investigators as the
reorganization continues, one of the most embarrassing has been confusion on the part of
other law-enforcement agencies about the identities of Homeland Security personnel. Joe
King, a legendary former undercover U.S. Customs agent who now teaches criminal justice
at New Yorks John Jay College, says there have been incidents in which local police
questioned the authenticity of badges carried by ICE agents, because they were unfamiliar
with the new agency and found the ICE acronym comical. King says he has heard of cases
in which ICE personnel were actually arrested by local law-enforcement officials who
doubted their ID was real. An ICE official said the agency was now distributing new badges
to its agents.

Selling to the Neighbors

While trade within other regions boomed in the postwar era, it stalled in the
Middle East. No longer.

http://www.msnbc.msn.com/id/11436564/site/newsweek/
Feb. 27, 2006 issue - After a century-long estrangement, some Arab economies are
rediscovering a lucrative asset: each other. Take Egypt, where the value of trade with its
Arab partners rose by 60 percent last yearfueled by the falling Egyptian pound, which
Cairo decided to float in 2003. The cheaper currency has been a boon to manufacturers like
the Olympic Group, which expects the value of its regionwide exports of white goods to
triple this year, to $50 million. The company has opened sales offices in Dubai and Jidda and
a refrigerator factory in Sudan. In Jordan, it's angling to buy a factory from which to
produce and export home appliances and consumer electronics. "The Middle East, North
Africa and Africathis is our region," says Olympic chief financial officer Hussam Mestekawy.
"We know the customers, and we now have the infrastructure to support a regional strategy.
We're not the European Union, but it's a good start."
Indeed, commerce within the Middle East, the most sluggish among the world's trading
blocs, is showing signs of a healthy revival. In 2005, according to new data from the
Egyptian Trade Ministry, the value of trade among the 22 Arab states was equal to 22
percent of their total gross domestic product, up sharply from the single-digit rates that had
prevailed for a generation. In part, that's due to rising demand fueled by record oil profits.
But Arab governments have also made a concerted effort to dismantle barriers to each
other's goods and services. "All of a sudden there are billions of dollars here and a big
incentive to keep it close to home, and that creates the means to aggressively develop this
region," says Rachid Mohamed Rachid, Egypt's minister of Foreign Trade and Industry.
In January, a dozen Arab states agreed to abolish customs duties on products traded within
the Arab Free Trade Area, the latest step toward the goal of a single market of 300 million
Arabic-speaking consumers. In March, an Arab summit in Algeria will ponder the creation of
a Pan-Arab customs union, a move that would have been unthinkable a decade ago, before
membership in the World Trade Organization became de rigueur for developing economies.
"Years ago, we had socialist economies with total government control," says Rachid. "Now
we have the same [free market] economic models, and this is having an effect."
The trend could help revive the Middle East as the great trading combine it was less than a
century ago. Under the Ottoman Empire, the Arab world was a global commercial hub; citystates such as Damascus and Alexandria had trade ties extending from Scandinavia to
China. Following World War I, however, British and French occupiers partitioned the region,
effectively cutting its trade links. Ever since, efforts to create an Arab common market have
been undermined by political disputes and a primitive industrial base that produced few
goods Arab consumers wanted to buy. The result: in recent decades, as imports and exports
within other regions rose even faster than international trade, trade in the Arab world
languished. A sustained revival could accelerate a broader reversal of the economic
stagnation that has fueled Muslim alienation from the West.
Skeptics linger. They point out that AFTA members retain the right to protect homegrown
productsfrom fruit to steel rebarfrom imported competition. They also question the

value of an Arab-only trade club. "Countries like China are joining in with Japan, Malaysia
and Korea," says Salah Diab, chairman of Egypt's Pico Engineering Holding Co., a
diversified conglomerate. "What is in Egypt's club? Jordan? Sudan? The magic solution is not
making a clique with neighboring countries. It won't work." Trade within Asia amounted to
$1.2 trillion in 2004, compared to $22 billion in the Middle East.
Still, a growing list of companies with regional ambitions suggests that an integrated Middle
East is more than an Arab nationalist's pipe dream. Subsidiaries of Egypt's Orascom Group
have built a regional network of tourist hotels, office parks and cell-phone grids. Orascom
Telecom has strategic shares in a host of such networks, including one in Iraq. Over the last
two years, Saudi Arabia's Savola Group has opened food-processing mills in Syria and
Algeria, adding to its existing operations in Iran, Jordan, Kazakhstan, Morocco and Sudan.
Last year, the Saudi Transport Ministry announced it would open to foreign investment a $1
billion railway connecting the country's eastern and western coasts. Eventually it's meant to
extend north into Jordan and possibly to Istanbula route that roughly follows the one plied
by the old Hejaz Railway, built a century ago to carry passengers and cargo from the
Ottoman sultanate to Mecca. "Regionality is opening up," says Prince Mohammed K.A. Al
Faisal, president of Riyadh-based Faisaliah Group Holding Ltd., which is actively buying
stakes in Arab companies with a regional strategy. "You're seeing Saudis who want to invest
in companies that are trading in the gulf, and they're looking at Egypt, with its big
population, and the Levant as a place they can grow."
Arab banking, long ago an international leader, is also reawakening. Last year, Egyptian
merchant bank EFG-Hermes Holding SAE purchased a 20 percent stake in Lebanon's Bank
Audi for $450 million in anticipation of the consolidation and growing regionalism of the
Beirut banking sector. "Lebanese banks are expanding everywhere," says EFG-Hermes CEO
Hassan Heikal, who says he projects that 60 to 70 percent of the firm's fee revenue will
come from outside Egypt over the next three years, up from 20 percent today.
Much of that activity is expected to come from the gulf states, Heikal says, where stock
trading volume is now roughly equal to the markets of South Asia and Southeast Asia,
combined. "With low-cost production [in Egypt] and the spectacular performance of Arab
equity markets," says Heikal, "we're suddenly seeing [Arab business] groups with huge
market share realizing that they're just as capable of making big investments at home as
their Asian counterparts." Somewhere, the Ottomans are smiling.
Egypt's Muslim Brotherhood calls for civil disobedience
Thu Jun 30, 2005
Mohammed Habib, deputy supreme guide of the Muslim Brotherhood speaks in
Cairo during an inaugural meeting of the National Alliance for Reform and Change
to which the Brothers invited all of the country's political forces.(AFP/Khaled
Desouki)

CAIRO (AFP) - Egypt's opposition Muslim Brotherhood movement called for nationwide civil disobedience
as a means of increasing pressure on President Hosni Mubarak to end his 24-year rule.
The banned but tolerated group made the call during an inaugural meeting of the National Alliance for
Reform and Change (NARC), a grouping of activists of various political persuasions united in their desire
to see Mubarak step down.
The Brotherhood had invited all of the country's political forces to join the newly formed alliance, but only
the centre-right Wafd party sent a representative to the event attended by about 1,000 activists.
"The Wafd party is honoured to join this alliance," party delegate Mohammed Alwan told participants. He
added that his party supported the Brotherhood's call for civil disobedience to force Mubarak out of office.
"We are not weak, but the government is exploiting our differences," said Magdy Hussein, former editor of
the banned Al-Shaab newspaper, mouthpiece of the Islamist-oriented Labour party.
The weight of the new alliance remains limited, with only 19 MPs in the 454-seat parliament, four of them
from the legal Wafd party.
The remaining 15 are part of the bloc controlled by the banned Muslim Brotherhood but all of them
entered the house as independents, including the only deputy from the Labour party, whose activities
have been suspended.
Nasserist activist and founder of the still unregistered Al-Karama party Hamdeen Sabahi said he
sympathized with the Brotherhood initiative, although he declined to be part of the new movement.
"The Brothers are the big force that the Egyptian street is in dire need of," he said.
The meeting was chaired by the Brotherhood's deputy supreme guide Mohammed Habib.
Hundreds of Brotherhood supporters were arrested during a May crackdown that followed a wave of
street protests. Most of them have since been released.
Habib said the new alliance would have a general secretariat and committees.
The 77-year-old Mubarak has yet to announce if he will seek a fifth six-year term in elections scheduled
for September, Egypt's first contested presidential polls.
http://www.freemasonrywatch.org/egypt_muslimbrotherhood.html

Lebanon Daily Star

http://www.dailystar.com.lb/opinion/13_03_04_b.asp

British intelligence steps up, few oppose

March 13, 2004
By Mahan Abedin
The British governments recent announcement that it plans to expand its internal intelligence and security
service, MI5, by 50 percent over the next several years has not met with much opposition in the UK. This
is all the more surprising given the fact that this expansion is the biggest since World War II.
The lack of opposition and intense public scrutiny has inevitably lent credence to the official contention
that the expansion of MI5 is designed to meet the growing threat of Islamic terrorism.
This plan might lead to a shift in the way British security handles its relations with Islamic organizations in
the UK. This could not only affect the patterns of Islamic activism in the UK, but moreover lead to the
overhaul of the unique security/intelligence culture of the United Kingdom.
According to Albert Speer, Hitlers notorious architect: Espionage is so dirty that only gentlemen can do it
That is why the British are so good at it. The British certainly like to think they possess the most
effective security/intelligence agencies in the world.
The British intelligence community is essentially comprised of three components; MI5 and MI6, dealing
with internal and external intelligence respectively and GCHQ, the signals intelligence agency.
MI5 has a 95-year history. It was christened in October 1909 by then-Prime Minister Asquith as part of the
broader effort to counter German espionage in the UK. The service was initially called the Secret Service
Bureau, but in 1916 it came under the jurisdiction of the Directorate of Military Intelligence and assumed
the title Military Intelligence Five (MI5). In 1931, formal powers for assessing and countering all threats
directed at the security of the UK were invested on MI5, thereby giving it the new name of the Security
Service, but MI5 continues to be used as the most popular title.
Allegations that British intelligence enjoys a special relationship with Islamists are not new and date to
the beginning of the 20th century, when many Iranian secular and nationalist constitutionalists dismissed
Seyed Jamaledin Asadabadi, arguably the founder of modern political Islam, as a freemason and British
agent.
These allegations resurfaced more than 70 years later, albeit this time directed at Iranian Ayatollah
Ruhollah Khomeini, who was branded an English agent by remnants of the deposed monarchical regime.
Indeed this conspiratorial discourse continues to inform the worldview of the fast-dwindling remnants of
the universally despised Pahlavi monarchy.
In fact, if British intelligence and specifically MI5 have enjoyed a special relationship with any quarter, it
has been with the Israeli intelligence community. Throughout the 1980s the Mossad had tremendous
freedom of action in the UK. In July 1984 Mossad agents kidnapped a former Nigerian minister, Umaru

Dikko, in London in a vain attempt to transport him to Nigeria. This operation was an attempt by Israeli
intelligence to curry favor with the new Nigerian regime of General Mohammed Buhari.
Moreover, MI5 provided Mossad with plenty of leeway to run Ismael Sowan, their star agent inside the
PLO station in the UK for a number of years in the 1980s. Sowans house was later raided by British antiterrorist police who discovered a cache of weapons. Mossad had known about the weapons cache and
had not informed MI5. This was a humiliating experience for the Security Service.
But even this freedom of action can not be termed a special relationship from a British perspective. British
intelligence would argue that these are merely sophisticated tactics and modes of operations that have
been evolving for centuries. There is an element of truth to this.
It is from this perspective that Britain has historically dealt differently with Islamic activism than other
European countries, in particular France. This has led to French charges that the UK tolerates Islamic
terrorists a specific reference to the ability of Algerian Islamic extremists to operate inside the UK with
seeming impunity for a number of years.
Moreover independent researchers have come up with the name Londonistan when referring to Britains
capital, which is now well and truly established as the most cosmopolitan metropolis in the world. The
name Londonistan is instructive in so far as it highlights the concentration of Islamic activism in London.
While elements within French intelligence accuse British security of tolerating Islamic terrorist activity,
independent researchers allude to incompetence and a laissez-faire attitude to asylum and immigration
as the key factors in the emergence of Londonistan.
Both contentions are wrong. The emergence of Londonistan is rooted in a carefully crafted British policy
that fuses a distinct security culture with Britains historical hospitality to foreign activists.
First and foremost, the majority of Islamic activism in the UK is legitimate and peaceful. London is now the
centre of various Islamic oriented organizations that challenge the tyrannies in their home countries.
These range from the old guard of Egypts Muslim Brotherhood to the ultra-modern Movement of Islamic
Reform in Arabia led by Saad al-Faqih.
The British fully recognize the legitimacy of these activities and provide these organizations with ample
scope to pursue their struggle. This corresponds to the centuries-old tradition of British hospitality
extended to foreign activists. On the other hand, the presence of these groups enables British intelligence
to spy on their activities and effectively gain some form of leverage over the internal politics of their home
countries. vThis policy has its limitations. The most dramatic example is when the British government,
under pressure from the Saudi regime, tried to expel the Saudi Arabian dissident Mohammed al-Masari
from the UK in 1996. This plan was scuppered by the UK judiciary which was keen to safeguard the
inherent fairness of Britains judicial system.
Clearly illegitimate activities, namely terrorism, are a wholly different proposition. What the French term
toleration of terrorism is only accurate to the extent that it highlights the excessive vigor of French

counterterrorism. The British counterterrorist culture is more subtle and in the long term arguably more
effective.
The expansion of MI5 from 2,000 to 3,000 personnel would be most welcome by the majority of Britons,
particularly ethnic minorities like me, if it were designed to meet a genuine threat from Islamic terrorism.
However, if it is designed to intimidate and possibly even suppress legitimate religious/political activities,
then it is likely to have pernicious consequences.
Ironically, it will align Britain closely with the security and political culture of the continent, and this is a
prospect that the majority of Britons, indigenous and ethnic minority alike, instinctively oppose.

Mahan Abedin, a London-based financial consultant and analyst of Iranian politics, wrote this commentary
for The Daily Star
http://www.freemasonrywatch.org/bettyslodge.html

Haniyeh wins nomination for PA PM

http://www.jpost.com/servlet/Satellite?cid=1139395442379&pagename=JPost%2FJPArticle%2FShowFull
Ismail Haniyeh, a prominent Hamas lawmaker in the Gaza Strip, was nominated Sunday to be Palestinian
prime minister.
Haniyeh, 43, confirmed to reporters Sunday that he had been nominated for the post, a day after being
sworn into the new Hamas-led Palestinian parliament. Hamas first announced the appointment, which
was widely expected, in a text message.
Palestinian Authority Chairman Mahmoud Abbas was expected later Sunday to formally charge Haniyeh
with the task of putting together a new cabinet. Haniyeh would then have three weeks to submit a
government to Abbas for approval.
Hamas would begin work on forming a new Palestinian government on Monday, Haniyeh said.
He said the group would hold talks with various Palestinian factions.
Addressing the parliament on Saturday, Abbas said he expected Hamas to honor existing peace accords
with Israel and halt violence. Hamas leaders rejected those calls, but signaled a willingness to
compromise.
Born in Gaza's Shati refugee camp, Haniyeh graduated from Gaza City's Islamic University in 1987 with a
degree in Arabic literature and became a close associate of Hamas founder Sheik Ahmed Yassin.
Haniyeh was expelled by Israel to south Lebanon in 1992, returned to Gaza a year later and became the
dean of the Islamic University. In 1998, he took charge of Yassin's office.
He also served as a liaison between Hamas and Palestinian Authority.
He rose to prominence after Israel's targeted killings in 2004 of Yassin and Yassin's successor, Abdel Aziz
Rantisi. Haniyeh, who escaped a similar attempt in June 2003, has been a member of the political
leadership of Hamas since the 1990s.

Hamas: Decision to cut funds won't frighten our people

http://www.jpost.com/servlet/Satellite?cid=1139395442379&pagename=JPost
%2FJPArticle%2FShowFull
Ismail Haniyeh, a prominent Hamas lawmaker in the Gaza Strip, was nominated Sunday to be Palestinian
prime minister.

Haniyeh, 43, confirmed to reporters Sunday that he had been nominated for the post, a day after being
sworn into the new Hamas-led Palestinian parliament. Hamas first announced the appointment, which
was widely expected, in a text message.
Palestinian Authority Chairman Mahmoud Abbas was expected later Sunday to formally charge Haniyeh
with the task of putting together a new cabinet. Haniyeh would then have three weeks to submit a
government to Abbas for approval.
Hamas would begin work on forming a new Palestinian government on Monday, Haniyeh said.
He said the group would hold talks with various Palestinian factions.
Addressing the parliament on Saturday, Abbas said he expected Hamas to honor existing peace accords
with Israel and halt violence. Hamas leaders rejected those calls, but signaled a willingness to
compromise.
Born in Gaza's Shati refugee camp, Haniyeh graduated from Gaza City's Islamic University in 1987 with a
degree in Arabic literature and became a close associate of Hamas founder Sheik Ahmed Yassin.
Haniyeh was expelled by Israel to south Lebanon in 1992, returned to Gaza a year later and became the
dean of the Islamic University. In 1998, he took charge of Yassin's office.
He also served as a liaison between Hamas and Palestinian Authority.
He rose to prominence after Israel's targeted killings in 2004 of Yassin and Yassin's successor, Abdel Aziz
Rantisi. Haniyeh, who escaped a similar attempt in June 2003, has been a member of the political
leadership of Hamas since the 1990s.
Hamas' new parliament speaker, Abdel Aziz Duaik, denounced the move as a ploy motivated by political
concerns ahead of Israel's March 28 elections. "This is a wrong decision, and the Israelis must reconsider
it," Duaik said.
The ministers voted to adopt a gradual, measured approach which would be sensitive to what happens on
the ground.
Israel collects and transfers about $50 million in tax money for the Palestinians each month. The money is
essential for the Palestinian Authority to meet its monthly payroll for about 140,000 workers.
The government decided it would approach the international community so that it too would discontinue
financial assistance to the PA once the Hamas government was formed, with the exception of
humanitarian assistance that is provided directly to the people.
Israel is trying to walk a fine line between ending assistance to the PA government but not unduly harming
the Palestinian population.

The government said that Israel would expand its assistance "to the operations of humanitarian
organizations that work with assisting the Palestinian population."
The ministers also decided to prevent the transfer of any security or military related equipment to the PA
from any outside source. This comes amid reports that the Russians had requested to send APCs to the
PA.
This clampdown would also entail coordination with the Egyptians to ensure material did not come in
through the Rafah crossing, the government noted.
In addition, those affiliated with Hamas would be prevented access at the border crossings into areas
under Israeli control, including those elected to the Palestinian Legislative Council.
The government also decided that in light of the increased terror action from Gaza, security checks at
crossing points from Gaza would be heightened, specifically at the Erez and Karni Crossings.
No formal decision was reached regarding allowing Palestinian workers to enter Israel, but the cabinet
ordered the army and defense ministry to take any necessary steps, Israel Radio reported.

Now when we take a look at recent layoffs here in America, WHEN

FOREIGN INVESTORS BUY AMERICAN COMPANIES, WILL THE UAE SHOW
ANY MORE MERCY TOWARDS EMPLOYEES WORKING AT OUR PORTS?

Lets take a look at how Democratic Foreign Management has

treated Americans in American corporations recently:

LAYOFFS 2006

WASHINGTON MUTUAL INC.: Washington Mutual Inc. recently told 1,000 employees
who work at a call center in Chatsworth that it would move their jobs to Texas and
Costa Rica to cut costs. The positions will be phased out starting soon. The shift is
part of a larger effort to make back-office and support operations more efficient as
the nation's largest thrift pursues ambitious expansion plans. The realignment will
involve moving several thousand jobs to foreign countries, as most of Washington
Mutual's competitors in the financial services industry are doing. 2/8/2006
HERSTAL GROUP: U.S. Repeating Arms Co., maker of "The Gun that Won the West,"
said recently it will shutter its plant, ending a 140-year legacy and eliminating 186
jobs. The company, which makes Winchester rifles is part of Belgium-based Herstal
Group, said decreased demand and tougher competition by lower-priced gun
makers overseas were key reasons for the decision. Herstal, which bought USRAC
in 1987, also owns the Browning brand of firearms. 2/8
W.C. BRADLEY COMPANY: The W.C. Bradley Co. is moving forward with plans to
shift production of its Char-Broil gas grills to China and eliminate about 600 fulltime and 1,000 seasonal jobs in Columbus. W.C. Bradley, privately owned and
headquartered in Columbus, has been meeting with employees, informing them
their services will no longer be needed after 2006 production ends. 2/6
SEQUA CORPORATION: ARC Automotive, a unit of manufacturing conglomerate
Sequa Corp., said recently it will transfer manufacturing operations from its Camden
facility to Reynosa, Mexico, and Xi'an, China, resulting in 300 job cuts. The
transition will begin immediately, and is expected to last over the next several
months. The facility manufactures energetic components for airbag inflators. 1/22

NOVA CHEMICALS CORPORATION: Nova Chemicals

Corp. said recently that it will close its Chesapeake, Va.,
plastics factory by year-end, cutting nearly 3 percent of its
worldwide work force as it tries to reduce overcapacity. The
Chesapeake plant makes polystyrene a lightweight polymer
used to make foam coffee cups, packing peanuts and
compact disc cases for which demand has been tepid in
recent years. The Virginia plant which can produce about
300 million pounds of polystyrene a year was the most

remote from customers and raw materials, the company

said. The manufacturing plant employs about 115 people
and the nearby technology center which is also closing
employs about 20 people. Nova said it plans to move
production from the Chesapeake factory to its other
polystyrene plants in Massachusetts, Pennsylvania, Ohio,
Alabama and Montreal. 2/8/2006
SWISS REINSURANCE COMPANY: Reinsurance giant
Swiss Re said recently that it will trim 1,000 to 1,700 jobs
from its combined work force after it takes over General
Electric Co.'s Kansas City-based insurance operations. Swiss
Re's incoming chief executive, said that after the company's
acquisition of GE Insurance Solutions later this year, he will
cut roughly 10 to 15 percent of the companies' combined
work force, which will be around 11,500. Swiss Re is the
world's second-largest provider of reinsurance, which is
coverage that primary insurers buy to reduce the risk of
losses they would suffer if too many customers filed claims at
once. It will become the largest when it acquires the GE unit,
the world's fourth-largest reinsurer. 2/8
WATERFIELD MORTGAGE COMPANY, INC.: The sale of
a mortgage company is expected to cost northeastern
Indiana at least 650 jobs in a move that will affect Colorado
as well. Fort Wayne-based Waterfield Mortgage Co. and its
subsidiary, Union Federal Bank of Indianapolis, have agreed
to sell Waterfield Financial Corp. to American Home
Mortgage Co. Under the agreements, Waterfield will close its
Fort Wayne operations center soon. Waterfield Mortgage
has offices in 21 states and planned to close those in

Lakewood, Colo., Phoenix and Oak Brook, Ill., in the next

few weeks. The job cuts will affect support staff and senior
management. About 400 positions in Waterfield's retail and
wholesale divisions will be retained. 2/8
TOYS R US, INC.: Toys "R" Us Inc plans to close 75
stores, convert 12 others into Babies "R" Us stores, and cut
3,000 jobs, the retailer said in a filing with the Securities and
Exchange Commission recently. Most of the stores are
expected to be closed soon. 2/6
TOYS R US, INC.: Toys "R" Us Inc plans to close 75
stores, convert 12 others into Babies "R" Us stores, and cut
3,000 jobs, the retailer said in a filing with the Securities and
Exchange Commission recently. Most of the stores are
expected to be closed soon. 2/6
REPUBLIC AIRWAYS HOLDINGS, INC.: Chautauqua
Airlines Inc., a regional carrier for American Airlines, plans
to cut more than 200 jobs at Lambert Field after losing a
ground handling contract to a competitor. Chautauqua has
scheduled layoffs to begin soon. A subsidiary of Republic
Airways Holdings Inc., Chautauqua operates 44 daily flights
at Lambert for American as an American Connection
partner. 2/6
REPUBLIC AIRWAYS HOLDINGS, INC.: Chautauqua
Airlines Inc., a regional carrier for American Airlines, plans
to cut more than 200 jobs at Lambert Field after losing a
ground handling contract to a competitor. Chautauqua has
scheduled layoffs to begin soon. A subsidiary of Republic

Airways Holdings Inc., Chautauqua operates 44 daily flights

at Lambert for American as an American Connection
partner. 2/6
ECLIPSYS CORPORATION: Eclipsys Corp., which makes
software for the health care industry, said recently it would
cut 100 jobs, resulting in severance costs of about $7 million
for the first quarter, in an effort to lower operating costs. 2/2
EMC CORPORATION: EMC Corp. said recently it plans to
eliminate 1,000 positions. EMC, whose shares fell about 2
percent recently, announced the cuts affecting about 4
percent of its work force as it raised its fourth-quarter
revenue estimate. EMC said it plans to eliminate redundant
functions and emphasize high-growth business areas after
recent acquisitions. EMC's systems are used by banks,
airlines, Internet service providers, retailers, governments
and others to store massive amounts of data. 2/2
FEDERAL-MOGUL CORPORATION: Bankrupt auto
parts maker Federal-Mogul Corp. recently announced plans
to shrink its work force by about 10% over three years as
part of its plan to leave court protection as a more
streamlined company. The Southfield, Mich.-based company,
which filed for bankruptcy protection in October 2001 as a
result of acquisition-related asbestos liabilities, said its
restructuring would affect up to 25 facilities and cut 4,500
jobs by December 2008. Federal-Mogul, which makes
Champion spark plugs and other parts including headlights,
windshield wipers and chassis, recorded $4.8 billion in
revenue during the first nine months of 2005. The company

sells parts to original equipment manufacturers and the

aftermarket, an area some analysts say could be ripe for
growth in 2006. 2/2
DIVERSA CORPORATION: Diversa Corp., a maker of
biotech research equipment and enzymes used by chemical
companies, recently said it is cutting about 85 jobs and
stopping development of certain programs to focus more on
late-stage products. The company, which employed about
320 people at the end of 2004, said it now plans to
concentrate on three areas: alternative energy, specialized
industrial processes and health and nutrition. 1/30
ROYAL AHOLD N.V.: The owner of Columbia-based U.S.
Foodservice said recently that it is eliminating about 700
jobs at its unit as part of a nationwide restructuring plan
aimed at cutting costs by $100 million. A spokesman for
Royal Ahold NV, the Netherlands-based food marketing
conglomerate, said it was too soon to say how many of the
jobs will come from the Columbia headquarters. But it is
estimated that up to 500 of the cuts will be to administrative
jobs spread throughout its 70 divisions nationwide. The
company employs more than 29,000 people nationwide and
is the second-largest food distributor behind Houston-based
Sysco Corp. The company, which also owns the Giant and
Stop & Shop supermarket chains, announced recently that it
would split U.S. Foodservice into two divisions and cut
administrative costs. One of the U.S. Foodservice units will
deliver bulk food and equipment to institutional buyers,
such as hospitals, schools and prisons. The other will focus
on fast-food restaurant chains. 1/30

ECC CAPITAL CORPORATION: Irvine-based mortgage

lender ECC Capital Corp. said that it would eliminate 27%
of its workforce, or more than 440 jobs, amid a cooling trend
in the home loan business. ECC's main subsidiary, Encore
Credit Corp., which funds loans through independent
mortgage brokers, will consolidate seven processing centers
into three sites in Irvine, Downers Grove, Ill., and Glen
Allen, Va., the company said. ECC specializes in subprime
loans to people with checkered credit, erratic employment or
other issues that prevent them from getting traditional loans.
1/30
GIBRALTAR PACKAGING GROUP INC.: Gibraltar
Packaging Group Inc. plans to close its plant in Fort Wayne,
cutting about 100 jobs. The plant's folding carton production
will be taken over by factories in Nebraska and North
Carolina, the company announced recently. The company
said the closure was a cost-cutting move. Hastings, Neb.based Gibraltar designs, manufactures and markets
packaging products. 1/25
MIDDLEBY CORPORATION: About 150 workers have
been laid off at Alkar. Middleby earlier this month acquired
Alkar for $26.7 million. Alkar, which has about $60 million
in annual sales, manufactures batch and conveyor ovens and
related packaging equipment for the food processing
industry under the Alkar and RapidPak brands. 1/25
WEYERHAEUSER COMPANY: To boost sagging profits in
a world that uses paper less and less, Weyerhaeuser recently

announced plans to close or sell operations in eight states.

About 800 workers will lose their jobs in the nationwide cuts
meant to strengthen shareholder returns and the company's
portfolio in general. In Memphis, Weyerhaeuser intends to
sell its corrugated shipping container facility early in 2006.
Within months, it will close a corrugated sheet feeder plant
in Pulaski, Tenn., cutting 33 jobs, and close a similar
operation in Waco, Texas. It will also close corrugated
packaging plants in Bedford Heights, Ohio; Elmira Heights,
N.Y.; Little Rock and Matthews, N.C., and a retail paper bag
plant in Kansas City, Mo. But the biggest closing will be in a
Plymouth, N.C., plant, which produces 350,000 tons a year of
containerboard. 1/18
NATIONAL RENEWABLE ENERGY LABORATORY:
With up to 35 percent of its budget diverted to other energy
projects, the National Renewable Energy Laboratory is
planning on laying off scientists and researchers beginning
next year. As many as 100 people will be laid off. The NREL,
which seeks to find sources of energy from solar, wind,
biomass and hydrogen technologies, had a $200 million
budget in 2005. Next year, however, the Department of
Energy is moving some of the lab's money to community
colleges or specific project areas, forcing a cutback in the
lab's staff of nearly 1,000. 1/18
BANK OF AMERICA CORPORATION: The U.S. Federal
Reserve recently approved Bank of America's more than $30
billion acquisition of MBNA Corp., clearing the way for
completion of the buyout and the elimination of 6,000 jobs.
In combining its credit card operations with MBNA's, Bank

of America will cut 6,000 jobs nationally. The joining of

Bank of America and MBNA is expected to create the
nation's largest credit card issuer, with about 118 million
cards in circulation and about $140 billion in outstanding
cardholder balances. 1/18
FIRST DATA CORPORATION: First Data Corp. said
recently it would cut 3 percent or 1,000 of its workers to cut
costs. Denver based First Data Corp., which owns Western
Union, processes a variety of other financial transactions,
employs about 33,000 workers. The cuts will primarily affect
the company's unit that processes card transactions, but will
affect all business units. 1/18
ADOBE SYSTEMS INC.: Adobe Systems Inc., which makes
software such as Acrobat for creating digital documents,
posted higher fourth-quarter earnings recently but said it
will cut 650 to 700 jobs as it folds recently acquired rival
Macromedia Inc. into its operations. The work force
reduction will reduce overlapping positions, focus the
company on growth areas and help it achieve its 2006
financial targets. 1/16
MIDWAY GAMES INC.: Midway Games Inc. plans to cut
up to 96 employees in order to reduce costs and increase
product development. The Chicago-based company said it
will cut between 71 and 96 positions, or 8 to 11 percent of its
work force. Some of the company's video game titles include
the "Mortal Kombat" series, "NBA Ballers," "MLB Slugfest
Loaded," and "Area 51." 1/16

COLD STONE CREAMERY, INC.: Fast-growing ice-cream

franchiser Cold Stone Creamery announced it was cutting
nearly a quarter of its corporate jobs recently. The company
said it was refocusing its strategy toward building sales at
existing and new stores rather than concentrating on
developing new franchisees. Fifty-three employees, from
entry to executive level, in various divisions were laid off,
leaving the company with 183 workers. Cold Stone, which
had fewer than 100 stores in 1999, grew quickly in 2005,
adding about 330 stores for a total of 1,215. About 1,000
franchises have been sold and have yet to be developed.
Plans are to open about 300 stores in 2006. 1/16
Trade Troubles? U.S. Deficit Hits Record $725.8B
http://www.foxnews.com/story/0,2933,184452,00.html
WASHINGTON he U.S. trade deficit skyrocketed in 2005 to a record $725.8 billion, as American
companies and consumers snapped up record levels of low-priced goods from China and highpriced oil from the Middle East, a U.S. government report on Friday showed.
The trade deficit, which has risen more or less steadily since 1991 when it was $30.7 billion, widened 17.5
percent in 2005 to set a record for the fourth year in a row.
A huge chunk of the deficit was with China alone. The trade shortfall with that country increased 24.5
percent to a record $201.6 billion. Imports of consumer and industrial goods like clothing, computers,
televisions, toys, furniture, chemicals and engines from China hit a record $243.5 billion, swamping
record U.S. exports to China of $41.8 billion.
The trade figures are expected to increase demands in Congress that China raise the value of its
currency and take other steps to open its market to more U.S. goods.
On Thursday, two U.S. senators proposed punishing Beijing for "cheating" in international trade by
revoking most-favored nation trade status and subjecting U.S. trade relations with China to an annual
review as done in the 1980s and 1990s.
Democrats blamed the huge overall deficit on the Bush administration's "flawed trade policy."

"Experts all around the world agree that these astronomical trade deficits are not sustainable and threaten
to disrupt the U.S. and global economies," Senate Democratic Leader Harry Reid said in a statement.
"This administration has ignored the problem and continues to pursue a trade policy that puts special
interests above the interests of American families."
President Bush called in his State of the Union speech for initiatives to boost the United States' ability to
compete internationally and has proposed billions of dollars in new research spending to keep the
country's innovative edge.
Bush administration officials, while agreeing the deficit should be reduced, argue it partly reflects stronger
economic growth in the United States than abroad.
U.S. Treasury Secretary John Snow told Congress this week that reducing the trade gap was a "shared
responsibility" that required increased savings in the United States, faster growth in Japan and the
European Union and movement by China and other Asian economies toward more market-based
exchange rates.
High oil prices also drove the deficit higher. The United States imported a record $175.6 billion of crude oil
in 2005, paying a record average price of $46.78 per barrel. The trade gap with Saudi Arabia and other
members of the Organization of Petroleum Exporting countries was a record $92.7 billion.
The December deficit totaled $65.7 billion, up 1.5 percent from a revised $64.7 billion in November, and in
line with expectations before the report.
Both U.S. imports and exports set records in December in a sign of a strong consumer demand at home
and improving growth in overseas markets that have lagged behind the United States.
U.S. exports increased 2.1 percent in December to $111.5 billion, led by record levels of capital goods,
auto and auto parts and consumer goods.
Imports rose 1.9 percent to $177.2 billion with records in several categories, including capital goods, auto
and auto parts and food, beverages and animal feed.
Financial markets mostly shrugged off the trade figures, which were expected to have little impact on
estimates of weakening U.S. economic growth in the fourth quarter of 2005.
Meanwhile, forecasters said the U.S. economy would bounce back in the first three months of the year,
but they trimmed their outlook for growth in 2006 as a whole.
Panelists surveyed in the Blue Chip Economic Indicators newsletter bumped up their projection for
annualized gross domestic product growth in the first quarter to 4.1 percent from a prediction of 3.6
percent a month ago. That was well above the fourth quarter's anemic 1.1 percent growth pace.
The panelists cut their outlook for 2006 growth to 3.3 percent from 3.4 percent in January, predicting
weaker growth in business spending than they expected a month ago.

The U.S. trade deficit would reach $1 trillion in 2007 if it continued to grow at 2005's pace. But Gary
Hufbauer, a senior fellow with the Institute for International Economics, said he expected the trade
deficit to level off in 2006.
"It's possible, but I think unlikely that we'll break a trillion" over the next several years, Hufbauer said. "The
reason I would say it's leveling off is that foreign growth is doing better, whereas U.S. growth is slowing
down a bit."
A further weakening of the U.S. dollar in 2006 should also give a boost to exports and trim import growth,
he said.
INSTITUTE FOR INTERNATIONAL ECONOMICS
] http://www.iie.com/
The Issue
The global current account deficit of the United States is now larger than it has ever beennearing $800
billion, almost 7 percent of US GDP. To finance both the current account deficit and its own sizable foreign
investments, the United States must import about $1 trillion of foreign capital every year or more than $4
billion every working day. The situation is unsustainable in both international financial and domestic
political (i.e., trade policy) terms. Correcting it must be the highest priority for US foreign economic policy.
The most constructive remedy in the short term is a three-part package that includes credible, sizable
reductions in the US budget deficit, expansion of domestic demand in major economies outside the
United States, and a gradual but substantial realignment of exchange rates.

Essential Reading from the Institute

Book: United States as a Debtor Nation
by William R. Cline
September 2005
Book: Is the U.S. Trade Deficit Sustainable?
by Catherine L. Mann
September 1999
Policy Brief 05-4: The Case for a New Plaza Agreement [pdf]
by William R. Cline, Institute for International Economics
December 2005
Working Paper 05-6: Postponing Global Adjustment: An Analysis of the Pending Adjustment of
Global Imbalances [pdf]

by Edwin M. Truman, Institute for International Economics

July 2005
Working Paper 05-11: The US Trade Deficit: A Disaggregated Perspective [pdf]
by Catherine L. Mann, Institute for International Economics
and Katharina Plck, Institute for International Economics
September 2005
Article: Managing Exchange Rates: Achievement of Global Re-balancing or Evidence of Global
Co-dependency [pdf]
by Catherine L. Mann, Institute for International Economics
Article in Business Economics
July 2004
Article: Breaking Up Is Hard To Do: Global Co-dependency, Collective Action, and the Challenges
of Global Adjustment [pdf]
by Catherine L. Mann, Institute for International Economics
Article published in the CESifo Forum
January 2005
Op-ed: When the Dollar Bill Comes Due
by Catherine L. Mann, Institute for International Economics
and Katharina Plck, Institute for International Economics
Op-ed
April 27, 2005
Book: United States and the World Economy: Foreign Economic Policy for the Next Decade
by C. Fred Bergsten and the Institute for International Economics
January 2005
Book: Dollar Adjustment: How Far? Against What?
edited by C. Fred Bergsten and John Williamson
November 2004
Book: Dollar Overvaluation and the World Economy
Special Report No. 16
edited by C. Fred Bergsten and John Williamson
February 2003

Kraft to Cut Up to 8,000 Jobs to Save on Costs

http://www.foxnews.com/story/0,2933,183245,00.html

CHICAGO Kraft Foods Inc. (KFT), the nation's largest food manufacturer, said Monday it would
eliminate 8,000 jobs, or about 8 percent of its work force, and close up to 20 production plants as
it broadens an ongoing restructuring effort.
Kraft said the cuts would save an additional $700 million in annual costs, atop a targeted $450 million in
savings it already had hoped to achieve through a restructuring that began in January 2004.
Northfield-based Kraft already had announced closures of 19 production facilities and the elimination of
5,500 jobs. Kraft said Monday that those efforts are on track, but said it is expanding the restructuring
plans to include more cuts.
The company said it intends to close plants in Broadmeadows, Victoria in Australia and Hoover, Ala., but
did not announce the other facilities it plans to close. Kraft also said it would trim 10 percent of its brand
portfolio.
Kraft said the additional cuts would cost the company $2.5 billion, bringing the total cost of its overall
restructuring to $3.7 billion.
Kraft announced the moves Monday while reporting fourth-quarter earnings results that fell short of
analysts' expectations.
Earnings for the October-December period totaled $773 million, or 46 cents a share, up from $628 million,
or 37 cents a share a year earlier. Revenue rose to $9.66 billion from $8.78 billion a year ago.
Wall Street had expected a profit of 53 cents a share, based on the consensus estimate of analysts polled
by Thomson Financial.
When the maker of Kraft cheese, Nabisco crackers, Oscar Mayer meats and Post cereals announced
its 2004 restructuring, there had just been a shake-up at top management that followed more than a year
of disappointing sales and earnings.
At the time, Kraft executives blamed the poor results on American consumers' increased health concerns,
which had put the entire packaged food industry under severe pressure to change quickly. The company's
troubles cost marketing expert Betsy Holden her job of co-CEO and head of North American operations in
December 2003. That left Roger Deromedi solely in charge.
The job and plant cuts and the earnings were announced after the market closed for the day. Kraft had
risen 71 cents, or 2.4 percent, to close at $30 on the New York Stock Exchange. Its shares added
another $1, or 3.3 percent, in after-hours trading.

Bernanke well-prepared to
put stamp on Fed
Former Princeton professor steeped in theory, practice of
monetary policy
http://www.msnbc.msn.com/id/11047153/
Some people get to a certain stage in life and chuck it all away for a
midlife career switch. For others, luck and happenstance play a big
part in professional development.
And then there is Ben Bernanke, whose entire career has led up to this
moment.
Bernanke, 52, takes over Wednesday as chairman of the powerful
Federal Reserve and inevitably will be measured against the largerthan-life standard set by Alan Greenspan over 18-1/2 years spanning
four presidents, two recessions and numerous global crises.
While it could take years for Bernanke to prove his mettle, the former
Princeton University economist is probably as well prepared as anyone
who has ever stepped into the job of central bank chief.
These are very large shoes to fill, said former Fed. Gov. Edward
Gramlich. But I think if anybody can fill them, its Ben.
From his undergraduate career studying economics at Harvard, to his
years of research and writing on monetary policy and nearly three
years as a Fed governor, Bernanke has spent half his life preparing for
the 14-year term he is about to begin.
Inevitably, he will be tested. Greenspan had been at the Fed for only
two months when the stock market crashed in October 1987, giving
him one of the toughest challenges of his career as financial markets
nearly ground to a halt. When Paul Volcker took over in 1979 he had

to move quickly as an inflation-wracked economy headed toward

recession after the abbreviated 17-month tenure of William Miller.
It is impossible to predict what crisis Bernanke will confront, and
when, but he faces a more immediate challenge as Fed policy-makers
try to decide when to pause or end their long campaign to raise
interest rates.
The Greenspan-led Fed has raised short-term rates steadily since June
2004, pushing them up a quarter-percentage point at each of 13
straight meetings in a bid to keep a lid on inflation yet without choking
off growth. Another quarter-point is considered certain at Greenspans
final meeting Tuesday, with yet another one possible at Bernankes
first meeting March 28.
But with the economy showing some signs of slowing, and concerns
rising about a downturn in housing, there is considerable uncertainty
over how the Fed should play out the end of its rate-hike cycle.
The easy job has been done, unfortunately, said former Fed governor
Laurence Meyer, vice chairman of Macroeconomic Advisers. Mistakes
are more likely when you get closer to the end, not knowing where the
end is, and thats where we are.
Nobody questions Bernankes background in monetary policy, which
includes years of research into the causes and lessons of the Great
Depression, an economic disaster that represents the biggest policy
failure in the Feds 93-year history. In fact it is Bernankes many years
in the ivory tower of academia that have sparked some of the biggest
questions, about whether he will be able to communicate effectively
with Wall Street.
Gramlich thinks the issue is overblown. While Bernanke does not have
the extensive real-world business experience that Greenspan brought
with him to the post after a career as a consultant and White House
aide, he does have the advantage of nearly three years as a Fed
governor plus a brief period as a top economic adviser in the Bush
White House.

What he doesnt probably have is personal knowledge of the big

players on Wall Street, said Gramlich. Im not sure that matters as
much as it used to. Youve got derivatives markets with trillions of
dollars, and nobody knows who the players are. But Bernanke has
studied these things carefully. So I actually dont think there would be
a problem.
And Alan Blinder, another former Fed governor and a colleague of
Bernankes at Princeton, said Bernanke appears to have the
temperament to handle the inevitable crisis.
The only honest answer is that with any individual you never know
know until they are tested, Blinder said. The one thing I do know is
he shares with Greenspan the trait of being calm and not very
excitable, which is a good thing.
Bernankes plain and direct speaking style probably will be a relief to
anyone who has ever tried to untangle some of Greenspans tortuous
and sometimes inscrutable pronouncements. Bernankes landmark
2002 speech on the potential for widespread deflation, or falling
prices, is a model of getting straight to the point.
After a brief discussion of the Japanese experience with the problem,
Bernanke sums up: So, is deflation a threat to the economic health of
the United States? Not to leave you in suspense, I believe that the
chance of significant deflation in the United States in the foreseeable
future is extremely small.
He then goes on to explain why and finally outlines what became
known as the Bernanke option for dealing with the potential
problem, which involved the possibility of the Fed buying up
government securities once short-term interest rates were near or at
zero.

FACT FILE

Bernanke

All about the new Fed chief

will get
an early

Born

Dec. 13, 1953, Augusta, Ga.

Education

B.A., Harvard University, Ph.D., Massachusetts

Institute of Technology

Career
highlights

Professor of economics, Princeton University, 19851994

Governor, Federal Reserve Board, 2002-2005
Chairman, White House Council of Economic
Advisers, June 2005-present

Selected
publication
s

Family

"Essays on the Great Depression," "Inflation

Targeting: Lessons From the International
Experience," "Principles of Economics" (co-author)
Wife Anna, two children

Ben
Bernanke

Source: MSNBC research

opportunity to showcase his style of speaking about the economy Feb.

15, when he is scheduled to appear before the House Financial
Services Committee to deliver the Feds semiannual report to Congress
on the economy.
While his plain speaking may be appreciated by investors and
laypeople following the economy, Meyer said Greenspans convoluted
style of speech may have stemmed in part from his unique style of
economic forecasting, which relied on anecdote, instinct and an
encyclopedic grasp of economic indicators.
His model was fundamentally different than everyone elses, said
Meyer. That is what well miss. Bernanke is a more conventional
thinker.

Economists expect Bernanke to put his own stamp on the Fed

relatively quickly, perhaps by persuading fellow policy-makers to adopt
his plan for an explicit inflation target, a move that would increase
transparency but was opposed by Greenspan because it would limit
the ability to respond to conditions more flexibly.
Analysts also will be watching closely to see whether Bernanke gets
the unanimous or near-unanimous backing of his colleagues on setting
policy, as Greenspan almost always did.
Ben is a persuasive guy, and he will have the respect of the
committee, but he might not get their votes as much as Alan did, said
Gramlich.
In his book A Term at The Fed: An Insiders View, Meyer described
Greenspans method of keeping dissension to a minimum at policysetting meetings, either by meeting with members beforehand or by
clearly stating his preferred outcome to influence the debate.
Meyer wonders whether Bernanke will try to establish that type of
iron-fisted leadership immediately or instead open the floor for a more
free-wheeling discussion.
When (Bernanke) was a member, did he probably wish for a
committee that was more democratic, where decisions were made at
the meeting? Meyer said. I dont think there is any question the
answer is yes. I think its a case of be careful what you wish for.
2006 MSNBC Interactive

Remarks by Governor Ben S. Bernanke

Before the National Economists Club, Washington, D.C.
November 21, 2002

Deflation: Making Sure "It" Doesn't Happen Here

Since World War II, inflation--the apparently inexorable rise in the prices of goods and
services--has been the bane of central bankers. Economists of various stripes have argued
that inflation is the inevitable result of (pick your favorite) the abandonment of metallic
monetary standards, a lack of fiscal discipline, shocks to the price of oil and other
commodities, struggles over the distribution of income, excessive money creation, self-

confirming inflation expectations, an "inflation bias" in the policies of central banks, and still
others. Despite widespread "inflation pessimism," however, during the 1980s and 1990s
most industrial-country central banks were able to cage, if not entirely tame, the inflation
dragon. Although a number of factors converged to make this happy outcome possible, an
essential element was the heightened understanding by central bankers and, equally as
important, by political leaders and the public at large of the very high costs of allowing the
economy to stray too far from price stability.
With inflation rates now quite low in the United States, however, some have expressed
concern that we may soon face a new problem--the danger of deflation, or falling prices.
That this concern is not purely hypothetical is brought home to us whenever we read
newspaper reports about Japan, where what seems to be a relatively moderate deflation--a
decline in consumer prices of about 1 percent per year--has been associated with years of
painfully slow growth, rising joblessness, and apparently intractable financial problems in
the banking and corporate sectors. While it is difficult to sort out cause from effect, the
consensus view is that deflation has been an important negative factor in the Japanese slump.
So, is deflation a threat to the economic health of the United States? Not to leave you in
suspense, I believe that the chance of significant deflation in the United States in the
foreseeable future is extremely small, for two principal reasons. The first is the resilience and
structural stability of the U.S. economy itself. Over the years, the U.S. economy has shown a
remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow. Flexible
and efficient markets for labor and capital, an entrepreneurial tradition, and a general
willingness to tolerate and even embrace technological and economic change all contribute
to this resiliency. A particularly important protective factor in the current environment is the
strength of our financial system: Despite the adverse shocks of the past year, our banking
system remains healthy and well-regulated, and firm and household balance sheets are for
the most part in good shape. Also helpful is that inflation has recently been not only low but
quite stable, with one result being that inflation expectations seem well anchored. For
example, according to the University of Michigan survey that underlies the index of
consumer sentiment, the median expected rate of inflation during the next five to ten years
among those interviewed was 2.9 percent in October 2002, as compared with 2.7 percent a
year earlier and 3.0 percent two years earlier--a stable record indeed.
The second bulwark against deflation in the United States, and the one that will be the focus
of my remarks today, is the Federal Reserve System itself. The Congress has given the Fed
the responsibility of preserving price stability (among other objectives), which most
definitely implies avoiding deflation as well as inflation. I am confident that the Fed would
take whatever means necessary to prevent significant deflation in the United States and,
moreover, that the U.S. central bank, in cooperation with other parts of the government as
needed, has sufficient policy instruments to ensure that any deflation that might occur would
be both mild and brief.
Of course, we must take care lest confidence become over-confidence. Deflationary episodes
are rare, and generalization about them is difficult. Indeed, a recent Federal Reserve study of
the Japanese experience concluded that the deflation there was almost entirely unexpected,

by both foreign and Japanese observers alike (Ahearne et al., 2002). So, having said that
deflation in the United States is highly unlikely, I would be imprudent to rule out the
possibility altogether. Accordingly, I want to turn to a further exploration of the causes of
deflation, its economic effects, and the policy instruments that can be deployed against it.
Before going further I should say that my comments today reflect my own views only and
are not necessarily those of my colleagues on the Board of Governors or the Federal Open
Market Committee.
Deflation: Its Causes and Effects
Deflation is defined as a general decline in prices, with emphasis on the word "general." At
any given time, especially in a low-inflation economy like that of our recent experience,
prices of some goods and services will be falling. Price declines in a specific sector may
occur because productivity is rising and costs are falling more quickly in that sector than
elsewhere or because the demand for the output of that sector is weak relative to the demand
for other goods and services. Sector-specific price declines, uncomfortable as they may be
for producers in that sector, are generally not a problem for the economy as a whole and do
not constitute deflation. Deflation per se occurs only when price declines are so widespread
that broad-based indexes of prices, such as the consumer price index, register ongoing
declines.
The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a
collapse of aggregate demand--a drop in spending so severe that producers must cut prices
on an ongoing basis in order to find buyers.1 Likewise, the economic effects of a deflationary
episode, for the most part, are similar to those of any other sharp decline in aggregate
spending--namely, recession, rising unemployment, and financial stress.
However, a deflationary recession may differ in one respect from "normal" recessions in
which the inflation rate is at least modestly positive: Deflation of sufficient magnitude may
result in the nominal interest rate declining to zero or very close to zero.2 Once the nominal
interest rate is at zero, no further downward adjustment in the rate can occur, since lenders
generally will not accept a negative nominal interest rate when it is possible instead to hold
cash. At this point, the nominal interest rate is said to have hit the "zero bound."
Deflation great enough to bring the nominal interest rate close to zero poses special
problems for the economy and for policy. First, when the nominal interest rate has been
reduced to zero, the real interest rate paid by borrowers equals the expected rate of deflation,
however large that may be.3 To take what might seem like an extreme example (though in
fact it occurred in the United States in the early 1930s), suppose that deflation is proceeding
at a clip of 10 percent per year. Then someone who borrows for a year at a nominal interest
rate of zero actually faces a 10 percent real cost of funds, as the loan must be repaid in
dollars whose purchasing power is 10 percent greater than that of the dollars borrowed
originally. In a period of sufficiently severe deflation, the real cost of borrowing becomes
prohibitive. Capital investment, purchases of new homes, and other types of spending
decline accordingly, worsening the economic downturn.

Although deflation and the zero bound on nominal interest rates create a significant problem
for those seeking to borrow, they impose an even greater burden on households and firms
that had accumulated substantial debt before the onset of the deflation. This burden arises
because, even if debtors are able to refinance their existing obligations at low nominal
interest rates, with prices falling they must still repay the principal in dollars of increasing
(perhaps rapidly increasing) real value. When William Jennings Bryan made his famous
"cross of gold" speech in his 1896 presidential campaign, he was speaking on behalf of
heavily mortgaged farmers whose debt burdens were growing ever larger in real terms, the
result of a sustained deflation that followed America's post-Civil-War return to the gold
standard.4 The financial distress of debtors can, in turn, increase the fragility of the nation's
financial system--for example, by leading to a rapid increase in the share of bank loans that
are delinquent or in default. Japan in recent years has certainly faced the problem of "debtdeflation"--the deflation-induced, ever-increasing real value of debts. Closer to home,
massive financial problems, including defaults, bankruptcies, and bank failures, were
endemic in America's worst encounter with deflation, in the years 1930-33--a period in
which (as I mentioned) the U.S. price level fell about 10 percent per year.
Beyond its adverse effects in financial markets and on borrowers, the zero bound on the
nominal interest rate raises another concern--the limitation that it places on conventional
monetary policy. Under normal conditions, the Fed and most other central banks implement
policy by setting a target for a short-term interest rate--the overnight federal funds rate in the
United States--and enforcing that target by buying and selling securities in open capital
markets. When the short-term interest rate hits zero, the central bank can no longer ease
policy by lowering its usual interest-rate target.5
Because central banks conventionally conduct monetary policy by manipulating the shortterm nominal interest rate, some observers have concluded that when that key rate stands at
or near zero, the central bank has "run out of ammunition"--that is, it no longer has the
power to expand aggregate demand and hence economic activity. It is true that once the
policy rate has been driven down to zero, a central bank can no longer use its traditional
means of stimulating aggregate demand and thus will be operating in less familiar territory.
The central bank's inability to use its traditional methods may complicate the policymaking
process and introduce uncertainty in the size and timing of the economy's response to policy
actions. Hence I agree that the situation is one to be avoided if possible.
However, a principal message of my talk today is that a central bank whose accustomed
policy rate has been forced down to zero has most definitely not run out of ammunition. As I
will discuss, a central bank, either alone or in cooperation with other parts of the
government, retains considerable power to expand aggregate demand and economic activity
even when its accustomed policy rate is at zero. In the remainder of my talk, I will first
discuss measures for preventing deflation--the preferable option if feasible. I will then turn
to policy measures that the Fed and other government authorities can take if prevention
efforts fail and deflation appears to be gaining a foothold in the economy.
Preventing Deflation

As I have already emphasized, deflation is generally the result of low and falling aggregate
demand. The basic prescription for preventing deflation is therefore straightforward, at least
in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a
manner as nearly consistent as possible with full utilization of economic resources and low
and stable inflation. In other words, the best way to get out of trouble is not to get into it in
the first place. Beyond this commonsense injunction, however, there are several measures
that the Fed (or any central bank) can take to reduce the risk of falling into deflation.
First, the Fed should try to preserve a buffer zone for the inflation rate, that is, during normal
times it should not try to push inflation down all the way to zero.6 Most central banks seem
to understand the need for a buffer zone. For example, central banks with explicit inflation
targets almost invariably set their target for inflation above zero, generally between 1 and 3
percent per year. Maintaining an inflation buffer zone reduces the risk that a large,
unanticipated drop in aggregate demand will drive the economy far enough into deflationary
territory to lower the nominal interest rate to zero. Of course, this benefit of having a buffer
zone for inflation must be weighed against the costs associated with allowing a higher
inflation rate in normal times.
Second, the Fed should take most seriously--as of course it does--its responsibility to ensure
financial stability in the economy. Irving Fisher (1933) was perhaps the first economist to
emphasize the potential connections between violent financial crises, which lead to "fire
sales" of assets and falling asset prices, with general declines in aggregate demand and the
price level. A healthy, well capitalized banking system and smoothly functioning capital
markets are an important line of defense against deflationary shocks. The Fed should and
does use its regulatory and supervisory powers to ensure that the financial system will
remain resilient if financial conditions change rapidly. And at times of extreme threat to
financial stability, the Federal Reserve stands ready to use the discount window and other
tools to protect the financial system, as it did during the 1987 stock market crash and the
September 11, 2001, terrorist attacks.
Third, as suggested by a number of studies, when inflation is already low and the
fundamentals of the economy suddenly deteriorate, the central bank should act more
preemptively and more aggressively than usual in cutting rates (Orphanides and Wieland,
2000; Reifschneider and Williams, 2000; Ahearne et al., 2002). By moving decisively and
early, the Fed may be able to prevent the economy from slipping into deflation, with the
special problems that entails.
As I have indicated, I believe that the combination of strong economic fundamentals and
policymakers that are attentive to downside as well as upside risks to inflation make
significant deflation in the United States in the foreseeable future quite unlikely. But suppose
that, despite all precautions, deflation were to take hold in the U.S. economy and, moreover,
that the Fed's policy instrument--the federal funds rate--were to fall to zero. What then? In
the remainder of my talk I will discuss some possible options for stopping a deflation once it
has gotten under way. I should emphasize that my comments on this topic are necessarily
speculative, as the modern Federal Reserve has never faced this situation nor has it pre-

committed itself formally to any specific course of action should deflation arise.
Furthermore, the specific responses the Fed would undertake would presumably depend on a
number of factors, including its assessment of the whole range of risks to the economy and
any complementary policies being undertaken by other parts of the U.S. government.7
Curing Deflation
Let me start with some general observations about monetary policy at the zero bound,
sweeping under the rug for the moment some technical and operational issues.
As I have mentioned, some observers have concluded that when the central bank's policy
rate falls to zero--its practical minimum--monetary policy loses its ability to further stimulate
aggregate demand and the economy. At a broad conceptual level, and in my view in practice
as well, this conclusion is clearly mistaken. Indeed, under a fiat (that is, paper) money
system, a government (in practice, the central bank in cooperation with other agencies)
should always be able to generate increased nominal spending and inflation, even when the
short-term nominal interest rate is at zero.
The conclusion that deflation is always reversible under a fiat money system follows from
basic economic reasoning. A little parable may prove useful: Today an ounce of gold sells for
$300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem
by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover,
his invention is widely publicized and scientifically verified, and he announces his intention
to begin massive production of gold within days. What would happen to the price of gold?
Presumably, the potentially unlimited supply of cheap gold would cause the market price of
gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold
would collapse immediately after the announcement of the invention, before the alchemist
had produced and marketed a single ounce of yellow metal.
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the
extent that they are strictly limited in supply. But the U.S. government has a technology,
called a printing press (or, today, its electronic equivalent), that allows it to produce as many
U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in
circulation, or even by credibly threatening to do so, the U.S. government can also reduce
the value of a dollar in terms of goods and services, which is equivalent to raising the prices
in dollars of those goods and services. We conclude that, under a paper-money system, a
determined government can always generate higher spending and hence positive inflation.
Of course, the U.S. government is not going to print money and distribute it willy-nilly
(although as we will see later, there are practical policies that approximate this behavior).8
Normally, money is injected into the economy through asset purchases by the Federal
Reserve. To stimulate aggregate spending when short-term interest rates have reached zero,
the Fed must expand the scale of its asset purchases or, possibly, expand the menu of assets
that it buys. Alternatively, the Fed could find other ways of injecting money into the system-for example, by making low-interest-rate loans to banks or cooperating with the fiscal
authorities. Each method of adding money to the economy has advantages and drawbacks,

both technical and economic. One important concern in practice is that calibrating the
economic effects of nonstandard means of injecting money may be difficult, given our
relative lack of experience with such policies. Thus, as I have stressed already, prevention of
deflation remains preferable to having to cure it. If we do fall into deflation, however, we can
take comfort that the logic of the printing press example must assert itself, and sufficient
injections of money will ultimately always reverse a deflation.
So what then might the Fed do if its target interest rate, the overnight federal funds rate, fell
to zero? One relatively straightforward extension of current procedures would be to try to
stimulate spending by lowering rates further out along the Treasury term structure--that is,
rates on government bonds of longer maturities.9 There are at least two ways of bringing
down longer-term rates, which are complementary and could be employed separately or in
combination. One approach, similar to an action taken in the past couple of years by the
Bank of Japan, would be for the Fed to commit to holding the overnight rate at zero for some
specified period. Because long-term interest rates represent averages of current and expected
future short-term rates, plus a term premium, a commitment to keep short-term rates at zero
for some time--if it were credible--would induce a decline in longer-term rates. A more direct
method, which I personally prefer, would be for the Fed to begin announcing explicit
ceilings for yields on longer-maturity Treasury debt (say, bonds maturing within the next two
years). The Fed could enforce these interest-rate ceilings by committing to make unlimited
purchases of securities up to two years from maturity at prices consistent with the targeted
yields. If this program were successful, not only would yields on medium-term Treasury
securities fall, but (because of links operating through expectations of future interest rates)
yields on longer-term public and private debt (such as mortgages) would likely fall as well.
Lower rates over the maturity spectrum of public and private securities should strengthen
aggregate demand in the usual ways and thus help to end deflation. Of course, if operating in
relatively short-dated Treasury debt proved insufficient, the Fed could also attempt to cap
yields of Treasury securities at still longer maturities, say three to six years. Yet another
option would be for the Fed to use its existing authority to operate in the markets for agency
debt (for example, mortgage-backed securities issued by Ginnie Mae, the Government
National Mortgage Association).
Historical experience tends to support the proposition that a sufficiently determined Fed can
peg or cap Treasury bond prices and yields at other than the shortest maturities. The most
striking episode of bond-price pegging occurred during the years before the Federal ReserveTreasury Accord of 1951.10 Prior to that agreement, which freed the Fed from its
responsibility to fix yields on government debt, the Fed maintained a ceiling of 2-1/2 percent
on long-term Treasury bonds for nearly a decade. Moreover, it simultaneously established a
ceiling on the twelve-month Treasury certificate of between 7/8 percent to 1-1/4 percent and,
during the first half of that period, a rate of 3/8 percent on the 90-day Treasury bill. The Fed
was able to achieve these low interest rates despite a level of outstanding government debt
(relative to GDP) significantly greater than we have today, as well as inflation rates
substantially more variable. At times, in order to enforce these low rates, the Fed had
actually to purchase the bulk of outstanding 90-day bills. Interestingly, though, the Fed

enforced the 2-1/2 percent ceiling on long-term bond yields for nearly a decade without ever
holding a substantial share of long-maturity bonds outstanding.11 For example, the Fed held
7.0 percent of outstanding Treasury securities in 1945 and 9.2 percent in 1951 (the year of
the Accord), almost entirely in the form of 90-day bills. For comparison, in 2001 the Fed
held 9.7 percent of the stock of outstanding Treasury debt.
To repeat, I suspect that operating on rates on longer-term Treasuries would provide
sufficient leverage for the Fed to achieve its goals in most plausible scenarios. If lowering
yields on longer-dated Treasury securities proved insufficient to restart spending, however,
the Fed might next consider attempting to influence directly the yields on privately issued
securities. Unlike some central banks, and barring changes to current law, the Fed is
relatively restricted in its ability to buy private securities directly.12 However, the Fed does
have broad powers to lend to the private sector indirectly via banks, through the discount
window.13 Therefore a second policy option, complementary to operating in the markets for
Treasury and agency debt, would be for the Fed to offer fixed-term loans to banks at low or
zero interest, with a wide range of private assets (including, among others, corporate bonds,
commercial paper, bank loans, and mortgages) deemed eligible as collateral.14 For example,
the Fed might make 90-day or 180-day zero-interest loans to banks, taking corporate
commercial paper of the same maturity as collateral. Pursued aggressively, such a program
could significantly reduce liquidity and term premiums on the assets used as collateral.
Reductions in these premiums would lower the cost of capital both to banks and the nonbank
private sector, over and above the beneficial effect already conferred by lower interest rates
on government securities.15
The Fed can inject money into the economy in still other ways. For example, the Fed has the
authority to buy foreign government debt, as well as domestic government debt. Potentially,
this class of assets offers huge scope for Fed operations, as the quantity of foreign assets
eligible for purchase by the Fed is several times the stock of U.S. government debt.16
I need to tread carefully here. Because the economy is a complex and interconnected system,
Fed purchases of the liabilities of foreign governments have the potential to affect a number
of financial markets, including the market for foreign exchange. In the United States, the
Department of the Treasury, not the Federal Reserve, is the lead agency for making
international economic policy, including policy toward the dollar; and the Secretary of the
Treasury has expressed the view that the determination of the value of the U.S. dollar should
be left to free market forces. Moreover, since the United States is a large, relatively closed
economy, manipulating the exchange value of the dollar would not be a particularly desirable
way to fight domestic deflation, particularly given the range of other options available. Thus,
I want to be absolutely clear that I am today neither forecasting nor recommending any
attempt by U.S. policymakers to target the international value of the dollar.
Although a policy of intervening to affect the exchange value of the dollar is nowhere on the
horizon today, it's worth noting that there have been times when exchange rate policy has
been an effective weapon against deflation. A striking example from U.S. history is Franklin
Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a

program of gold purchases and domestic money creation. The devaluation and the rapid
increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed,
consumer price inflation in the United States, year on year, went from -10.3 percent in 1932
to -5.1 percent in 1933 to 3.4 percent in 1934.17 The economy grew strongly, and by the way,
1934 was one of the best years of the century for the stock market. If nothing else, the
episode illustrates that monetary actions can have powerful effects on the economy, even
when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's
devaluation.
Fiscal Policy
Each of the policy options I have discussed so far involves the Fed's acting on its own. In
practice, the effectiveness of anti-deflation policy could be significantly enhanced by
cooperation between the monetary and fiscal authorities. A broad-based tax cut, for example,
accommodated by a program of open-market purchases to alleviate any tendency for interest
rates to increase, would almost certainly be an effective stimulant to consumption and hence
to prices. Even if households decided not to increase consumption but instead re-balanced
their portfolios by using their extra cash to acquire real and financial assets, the resulting
increase in asset values would lower the cost of capital and improve the balance sheet
positions of potential borrowers. A money-financed tax cut is essentially equivalent to
Milton Friedman's famous "helicopter drop" of money.18
Of course, in lieu of tax cuts or increases in transfers the government could increase
spending on current goods and services or even acquire existing real or financial assets. If
the Treasury issued debt to purchase private assets and the Fed then purchased an equal
amount of Treasury debt with newly created money, the whole operation would be the
economic equivalent of direct open-market operations in private assets.
Japan
The claim that deflation can be ended by sufficiently strong action has no doubt led you to
wonder, if that is the case, why has Japan not ended its deflation? The Japanese situation is a
complex one that I cannot fully discuss today. I will just make two brief, general points.
First, as you know, Japan's economy faces some significant barriers to growth besides
deflation, including massive financial problems in the banking and corporate sectors and a
large overhang of government debt. Plausibly, private-sector financial problems have muted
the effects of the monetary policies that have been tried in Japan, even as the heavy overhang
of government debt has made Japanese policymakers more reluctant to use aggressive fiscal
policies (for evidence see, for example, Posen, 1998). Fortunately, the U.S. economy does
not share these problems, at least not to anything like the same degree, suggesting that antideflationary monetary and fiscal policies would be more potent here than they have been in
Japan.
Second, and more important, I believe that, when all is said and done, the failure to end
deflation in Japan does not necessarily reflect any technical infeasibility of achieving that
goal. Rather, it is a byproduct of a longstanding political debate about how best to address

Japan's overall economic problems. As the Japanese certainly realize, both restoring banks
and corporations to solvency and implementing significant structural change are necessary
for Japan's long-run economic health. But in the short run, comprehensive economic reform
will likely impose large costs on many, for example, in the form of unemployment or
bankruptcy. As a natural result, politicians, economists, businesspeople, and the general
public in Japan have sharply disagreed about competing proposals for reform. In the
resulting political deadlock, strong policy actions are discouraged, and cooperation among
policymakers is difficult to achieve.
In short, Japan's deflation problem is real and serious; but, in my view, political constraints,
rather than a lack of policy instruments, explain why its deflation has persisted for as long as
it has. Thus, I do not view the Japanese experience as evidence against the general
conclusion that U.S. policymakers have the tools they need to prevent, and, if necessary, to
cure a deflationary recession in the United States.
Conclusion
Sustained deflation can be highly destructive to a modern economy and should be strongly
resisted. Fortunately, for the foreseeable future, the chances of a serious deflation in the
United States appear remote indeed, in large part because of our economy's underlying
strengths but also because of the determination of the Federal Reserve and other U.S.
policymakers to act preemptively against deflationary pressures. Moreover, as I have
discussed today, a variety of policy responses are available should deflation appear to be
taking hold. Because some of these alternative policy tools are relatively less familiar, they
may raise practical problems of implementation and of calibration of their likely economic
effects. For this reason, as I have emphasized, prevention of deflation is preferable to cure.
Nevertheless, I hope to have persuaded you that the Federal Reserve and other economic
policymakers would be far from helpless in the face of deflation, even should the federal
funds rate hit its zero bound.19

References

Ahearne, Alan, Joseph Gagnon, Jane Haltmaier, Steve Kamin, and others, "Preventing
Deflation: Lessons from Japan's Experiences in the 1990s," Board of Governors,
International Finance Discussion Paper No. 729, June 2002.
Clouse, James, Dale Henderson, Athanasios Orphanides, David Small, and Peter Tinsley,
"Monetary Policy When the Nominal Short-term Interest Rate Is Zero," Board of Governors
of the Federal Reserve System, Finance and Economics Discussion Series No. 2000-51,
November 2000.
Eichengreen, Barry, and Peter M. Garber, "Before the Accord: U.S. Monetary-Financial
Policy, 1945-51," in R. Glenn Hubbard, ed., Financial Markets and Financial Crises,

Chicago: University of Chicago Press for NBER, 1991.

Eggertson, Gauti, "How to Fight Deflation in a Liquidity Trap: Committing to Being
Irresponsible," unpublished paper, International Monetary Fund, October 2002.
Fisher, Irving, "The Debt-Deflation Theory of Great Depressions," Econometrica (March
1933) pp. 337-57.
Hetzel, Robert L. and Ralph F. Leach, "The Treasury-Fed Accord: A New Narrative
Account," Federal Reserve Bank of Richmond, Economic Quarterly (Winter 2001) pp. 3355.
Orphanides, Athanasios and Volker Wieland, "Efficient Monetary Design Near Price
Stability," Journal of the Japanese and International Economies (2000) pp. 327-65.
Posen, Adam S., Restoring Japan's Economic Growth, Washington, D.C.: Institute for
International Economics, 1998.
Reifschneider, David, and John C. Williams, "Three Lessons for Monetary Policy in a LowInflation Era," Journal of Money, Credit, and Banking (November 2000) Part 2 pp. 936-66.
Toma, Mark, "Interest Rate Controls: The United States in the 1940s," Journal of Economic
History (September 1992) pp. 631-50.
Footnotes

1. Conceivably, deflation could also be caused by a sudden, large expansion in

aggregate supply arising, for example, from rapid gains in productivity and broadly
declining costs. I don't know of any unambiguous example of a supply-side
deflation, although China in recent years is a possible case. Note that a supply-side
deflation would be associated with an economic boom rather than a recession. Return
to text
2. The nominal interest rate is the sum of the real interest rate and expected inflation.
If expected inflation moves with actual inflation, and the real interest rate is not too
variable, then the nominal interest rate declines when inflation declines--an effect
known as the Fisher effect, after the early twentieth-century economist Irving Fisher.
If the rate of deflation is equal to or greater than the real interest rate, the Fisher
effect predicts that the nominal interest rate will equal zero. Return to text
3. The real interest rate equals the nominal interest rate minus the expected rate of
inflation (see the previous footnote). The real interest rate measures the real (that is,
inflation-adjusted) cost of borrowing or lending. Return to text

4. Throughout the latter part of the nineteenth century, a worldwide gold shortage
was forcing down prices in all countries tied to the gold standard. Ironically,
however, by the time that Bryan made his famous speech, a new cyanide-based
method for extracting gold from ore had greatly increased world gold supplies,
ending the deflationary pressure. Return to text
5. A rather different, but historically important, problem associated with the zero
bound is the possibility that policymakers may mistakenly interpret the zero nominal
interest rate as signaling conditions of "easy money." The Federal Reserve apparently
made this error in the 1930s. In fact, when prices are falling, the real interest rate
may be high and monetary policy tight, despite a nominal interest rate at or near
zero. Return to text
6. Several studies have concluded that the measured rate of inflation overstates the
"true" rate of inflation, because of several biases in standard price indexes that are
difficult to eliminate in practice. The upward bias in the measurement of true
inflation is another reason to aim for a measured inflation rate above zero. Return to
text
7. See Clouse et al. (2000) for a more detailed discussion of monetary policy options
when the nominal short-term interest rate is zero. Return to text
8. Keynes, however, once semi-seriously proposed, as an anti-deflationary measure,
that the government fill bottles with currency and bury them in mine shafts to be dug
up by the public. Return to text
9. Because the term structure is normally upward sloping, especially during periods
of economic weakness, longer-term rates could be significantly above zero even
when the overnight rate is at the zero bound. Return to text
10. S See Hetzel and Leach (2001) for a fascinating account of the events leading to
the Accord. Return to text
11. See Eichengreen and Garber (1991) and Toma (1992) for descriptions and
analyses of the pre-Accord period. Both articles conclude that the Fed's commitment
to low inflation helped convince investors to hold long-term bonds at low rates in the
1940s and 1950s. (A similar dynamic would work in the Fed's favor today.) The ratepegging policy finally collapsed because the money creation associated with buying
Treasury securities was generating inflationary pressures. Of course, in a deflationary
situation, generating inflationary pressure is precisely what the policy is trying to
accomplish.
An episode apparently less favorable to the view that the Fed can manipulate
Treasury yields was the so-called Operation Twist of the 1960s, during which an
attempt was made to raise short-term yields and lower long-term yields

simultaneously by selling at the short end and buying at the long end. Academic
opinion on the effectiveness of Operation Twist is divided. In any case, this episode
was rather small in scale, did not involve explicit announcement of target rates, and
occurred when interest rates were not close to zero. Return to text
12. The Fed is allowed to buy certain short-term private instruments, such as bankers'
acceptances, that are not much used today. It is also permitted to make IPC
(individual, partnership, and corporation) loans directly to the private sector, but only
under stringent criteria. This latter power has not been used since the Great
Depression but could be invoked in an emergency deemed sufficiently serious by the
Board of Governors. Return to text
13. Effective January 9, 2003, the discount window will be restructured into a socalled Lombard facility, from which well-capitalized banks will be able to borrow
freely at a rate above the federal funds rate. These changes have no important
bearing on the present discussion. Return to text
14. By statute, the Fed has considerable leeway to determine what assets to accept as
collateral. Return to text
15. In carrying out normal discount window operations, the Fed absorbs virtually no
credit risk because the borrowing bank remains responsible for repaying the discount
window loan even if the issuer of the asset used as collateral defaults. Hence both the
private issuer of the asset and the bank itself would have to fail nearly
simultaneously for the Fed to take a loss. The fact that the Fed bears no credit risk
places a limit on how far down the Fed can drive the cost of capital to private
nonbank borrowers. For various reasons the Fed might well be reluctant to incur
credit risk, as would happen if it bought assets directly from the private nonbank
sector. However, should this additional measure become necessary, the Fed could of
course always go to the Congress to ask for the requisite powers to buy private
assets. The Fed also has emergency powers to make loans to the private sector (see
footnote 12), which could be brought to bear if necessary. Return to text
16. The Fed has committed to the Congress that it will not use this power to "bail
out" foreign governments; hence in practice it would purchase only highly rated
foreign government debt. Return to text
17. U.S. Bureau of the Census, Historical Statistics of the United States, Colonial
Times to 1970, Washington, D.C.: 1976. Return to text
18. A tax cut financed by money creation is the equivalent of a bond-financed tax cut
plus an open-market operation in bonds by the Fed, and so arguably no explicit
coordination is needed. However, a pledge by the Fed to keep the Treasury's
borrowing costs low, as would be the case under my preferred alternative of fixing
portions of the Treasury yield curve, might increase the willingness of the fiscal

authorities to cut taxes.

Some have argued (on theoretical rather than empirical grounds) that a moneyfinanced tax cut might not stimulate people to spend more because the public might
fear that future tax increases will just "take back" the money they have received.
Eggertson (2002) provides a theoretical analysis showing that, if government bonds
are not indexed to inflation and certain other conditions apply, a money-financed tax
cut will in fact raise spending and inflation. In brief, the reason is that people know
that inflation erodes the real value of the government's debt and, therefore, that it is
in the interest of the government to create some inflation. Hence they will believe the
government's promise not to "take back" in future taxes the money distributed by
means of the tax cut. Return to text
19. Some recent academic literature has warned of the possibility of an "uncontrolled
deflationary spiral," in which deflation feeds on itself and becomes inevitably more
severe. To the best of my knowledge, none of these analyses consider feasible
policies of the type that I have described today. I have argued here that these policies
would eliminate the possibility of uncontrollable deflation. Return to text
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm

Exxon Profit Soars on High Prices

http://www.foxnews.com/story/0,2933,183167,00.html

IRVING, Texas Exxon Mobil Corp. (XOM) posted record profits for any U.S. company on Monday
$10.71 billion for the fourth quarter and $36.13 billion for the year as the world's biggest
publicly traded oil company benefited from high oil and gas prices and demand for refined
products. The results exceeded Wall Street expectations and Exxon shares rose nearly 3 percent.
The company's earnings amounted to $1.71 per share for the October-December quarter, up 27 percent
from $8.42 billion, or $1.30 per share, in the year ago quarter. The result topped the then-record quarterly
profit of $9.92 billion Exxon posted in the third quarter of 2005.
Exxon's profit for the year was also the largest annual reported net income in U.S. history, according to
Howard Silverblatt, a stock market analyst for Standard & Poor's. He said the previous high was Exxon's
$25.3 billion profit in 2004.
Exxon's results lifted the combined 2005 profits for the country's three largest integrated oil companies to
more than $63 billion.

ConocoPhillips said last Wednesday that its fourth-quarter earnings rose 51 percent to $3.68 billion, while
annual income climbed 66 percent to $13.53 billion. Two days later, Chevron Corp. (CVX) said its fourthquarter earnings rose 20 percent to $4.14 billion, while annual income jumped 6 percent to $14.1 billion.
The oil industry's stellar results renewed talk among some politicians for a windfall profit tax that would
push companies to invest more in new production and refining capacity.
Sen. Babara Boxer, a California Democrat who sharply criticized oil executives appearing before
Congress in November, struck again on Friday. She called on the Bush Administration and the Federal
Trade Commission to "put an end to gouging," then suggested that FTC stood for "Friend to Chevron."
But John Felmy, chief economist for the American Petroleum Institute, a Washington-based trade group,
said Monday that the political rhetoric was "not a case based on fact."
"We invested somewhere in the order of $86 billion last year," Felmy said. "Then we have to treat
investors appropriately otherwise we'd have the Eliott Spitzers of the world coming after us."
The results for Exxon's latest quarter included a $390 million gain related to a litigation settlement.
Excluding special items, earnings were $10.32 billion, or $1.65 per share. The result topped Wall Street's
expectations. Analysts surveyed by Thomson Financial predicted earnings of $1.44 per share.
Exxon shares rose $1.87 to $63.16 on the New York Stock Exchange.
Quarterly revenue ballooned to $99.66 billion from $83.37 billion a year ago but came in shy of the
$100.72 billion Exxon posted in the third quarter, which was the first time a U.S. public company
generated more than $100 billion in sales in a single quarter.
By segment, exploration and production earnings rose sharply to $7.04 billion, up $2.15 billion from the
2004 quarter, reflecting higher crude oil and natural gas prices. Production decreased by 1 percent due to
the lingering effects of hurricanes Katrina and Rita, which battered the Gulf Coast in August and
September.
The company's refining and marketing segment reported $2.39 billion in earnings, as higher refining and
marketing margins helped offset the residual effects of the hurricanes.
Exxon's chemicals business saw earnings, excluding special items, decline by $413 million to $835
million, as higher materials costs squeezed margins.
For the full year, net income surged to $5.71 per share from $3.89 per share in 2004. Annual revenue
grew to $371 billion from $298.04 billion.
To put that into perspective, Exxon's revenue for the year exceeded Saudi Arabia's estimated 2005 gross
domestic product of $340.5 billion, according to statistics maintained by the Central Intelligence Agency.

March 6, 1926
Born in New York City, the only child of Rose and Herbert Greenspan
1940s
After attending Juilliard music school, spends a year playing saxophone with a
touring big band.
1948
Graduates summa cum laude from New York University.
1950
Receives masters degree in economics from New York University.
1952
Marries Joan Mitchell. Marriage was later annulled.
1952
Meets libertarian philosopher-author Ayn Rand and becomes part of her informal
circle.
1953
Forms consulting firm Townsend-Greenspan.
1968
Acts as economic adviser to presidential campaign of Richard Nixon.
1974
Appointed by Nixon to be chairman of White House Council Economic Advisers.
Stays on in Ford administration.
1977
Awarded Ph.D. in economics by New York University.
1981
Appointed chairman of National Commission on Social Security Reform. Report of
the bipartisan Greenspan Commission in 1983 formed the basis for changes that
helped shore up Social Security financing.
1987
President Reagan appoints Greenspan as chairman of Federal Reserve. After
confirmation by Senate, term began Aug. 11.
Oct. 19, 1987
Dow Jones industrials tumbles nearly 23 percent in stock market crash.
Greenspan issues a statement the next morning offering assurance that the Fed
was prepared to serve as a source of liquidity to support the financial system.
July 1990
Beginning of eight-month recession, followed by "jobless recovery."

How powerful is the Federal

Reserve?
With Bernanke about to take over, time for a reality check
http://www.msnbc.msn.com/id/10217616/

The mighty Federal Reserve. Its more powerful than a ballooning

housing market, able to stop inflation in a single bound. And, if it slips,
if it uses its super powers unwisely, if it goes too far, it could push the
economy into recession with just a nudge of its pinkie.
Thats one way of looking at the nations central bank. Under outgoing
Federal Reserve chairman Alan Greenspan, it has become the main
way. The Fed is seen as the arbiter of all things economic, the capital
of Moneyland, with Greenspan as its ruler and resident hard-tounderstand genius.
With the chairmans seat at the central bank expected to turn over to
Ben Bernanke in January, its time for a reality check. Just how
powerful is the Fed?
The Fed has two missions, said Quincy Krosby, chief investment
strategist at The Hartford, the Connecticut-based insurance company.
Its primary mandate is price stability, keeping inflation at bay. Its
secondary charge is maintaining an environment of sustainable
economic growth, which is interpreted to mean sustaining jobs.
To achieve its missions, the Fed has two main tools: It regulates the
money supply and increases or decreases short-term interest rates.
More money plus lower interest rates are the tools of an
accommodative Fed, a Fed trying to spark economic growth. If the
Fed decreases the nations money supply and raises interest rates, it is
tightening, trying to slow the economy and stave off inflation.

After 12 rate hikes in a row, the short-term federal funds rate is at 4

percent, a four-year high, and Wall Street watches the Fed with the
rapt attention a parent gives a small child who is playing close to the
street.
We have said it before, and we shall say it again: The key to next
years economic and financial market performance hinges upon the
Fed not overreacting to the perceived inflation threat, a recent Merrill
Lynch research report said.
When the Fed released notes Tuesday from its most recent policy
meeting, traders bid stocks higher after sensing a glimmer of hope
that an end to the Feds rate hikes was in sight. News that the Fed
might stop giving strong hints about where rates are heading was the
top story in Wednesdays Wall Street Journal.
Wrote Stephen Wood, portfolio strategist at Russell Investment Group,
It is Fed interest rate policy that drives economic cycles. In the
context of todays financial news flow, investors would do well to
remember that oil, terrorism, natural disasters, etc. gain significance
relative to current Fed policy.
Citigroups chief global equity strategist, Ajay Singh Kapur, quotes an
old market adage, Economies dont die of old age, they are always
murdered by the central bank. Eight of the last 12 recessions were
preceded by Fed rate hikes, he said, a figure that is mentioned and
repeated often by the all-powerful Fed school of Wall Street
strategists these days.
This is nonsense, said Sandy Lincoln, chief market strategist at Wayne
Hummer Asset Management in Chicago.
There are factors that are far beyond the Feds control, Lincoln said,
such as the introduction of the euro, the globalization of the economy
and the current sharp increases in commodities prices.
The Fed doesnt murder economies, he said. The Fed doesnt create
these cycles. ... They can get it wrong, but over the last 30 years,

theyve gotten it right more often than theyve gotten it wrong. At the
critical time, they really got it right.
For instance, former Fed chairman Paul Volcker hiked rates to a farethee-well after inflation spiked in 1981, Lincoln said. Greenspan acted
decisively after the Black Monday market crash in 1987. The Fed
reassured investors the day after Black Monday by saying it would
serve as a source of liquidity. The president of the New York Fed, E.
Gerald Corrigan, persuaded banks and securities firms to continue to
extend credit and settle trades.
Most people havent heard of Corrigan, who left the New York Fed in
1993, after 25 years with the Federal Reserve system, but he played a
key role in saving the day.
Weve attributed all kinds of powers to the Fed chairman, Krosby
said, but the Fed works as a team and the team today is very
experienced. Not just the chairman, but the governors and the staff.
While investors are growing impatient with the Feds rate hikes, its
important to remember that at the start of this tightening program,
rates were at a 45-year low. It was like war time, Krosby said.
What the Fed is trying to do is take the air out of the housing bubble,
slow down the larger economy and see employment edge slightly
lower.
The key is a slowdown, not a crash, she said. Still, when the Fed has
finished, people will get hurt, she said.
Speculators could be in particular trouble. The more leveraged you
are, the more vulnerable you are to losing, she said. Instead of
flipping condos, you could be flipping burgers and I dont think the
Fed cares. What the Fed cares about is the average American.
Even those who believe in the Feds super powers dont necessarily
think the Fed is an institution to fear.

Think of this Fed-induced slowdown like hitting the Reset button on

the economy, Wood wrote. Short term it can be grueling, but longer
term (it is) good for stocks: It lowers interest rates, lowers inflation,
works of excesses and creates the expectation for increased corporate
profits. Mostly, it will get the Fed off our back.
What hes saying is that only the Fed can call off the Fed.
Now, thats power.
2006 The Associated Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.

Background: How Europe deals with the Hamas within

http://www.jpost.com/servlet/Satellite?cid=1138622510074&pagename=JPost
%2FJPArticle%2FShowFull

The EU's foreign ministers grappled in Brussels Monday with how to treat the Palestinian Authority following last
Wednesday's landslide Hamas victory.
That there is even a question of whether to continue funding the PA if Hamas is part of the government shows that
Europe has taken a much more forgiving position toward violent and terrorist organizations that form parties here
than they do on their own continent.
Indeed, the participation of Hamas in the Palestinian Legislative Council elections ran against the grain of the law and numerous precedents - governing parties that advocate violence and government overthrow in a number of
European countries.
The following is a partial list:
France:
French law allows for the dismantling of parties, or forbidding their activities, on the basis of racist propaganda. The
law also enables the dismantling of organizations that work toward inciting armed demonstration in the street,
resemble militias, or "whose aim is to undermine the integrity of national territory or use force to attack republican
government."
In August 2002, the French government dismantled the extreme-right group Unite Radicale after one of its members
tried to assassinate French President Jacques Chirac. In addition, the government outlawed two militant Kurdish
organizations in 1993, and outlawed the neo-Fascist group Le Nouvel Ordre in 1982.

Germany:
The German constitution includes a clause that outlaws party activity that represents a threat to the constitutional,
democratic government in Germany. The neo-Nazi party Sozialistische Reichspartei was outlawed in 1953 after it
was deemed to endanger the country's democratic government. In 1956 the communist party, the KDP, was
outlawed, since its goal was to bring about a communist government in Germany.
Spain:
In Spain it is possible to forbid party activities, or to dismantle them on the basis of their being criminal organizations,
especially if the organization is armed or a terrorist group.
In 2002 Spain enacted a law making it possible for a party to be banned if it supported a radical change in the state's
political structure, or if it directly or indirectly supported terrorism. In August 2002 a Spanish judge banned the
Batasuna Party for three years because of its connection with the Basque ETA. After this decision, the Spanish
parliament met and decided to ban the party indefinitely. In addition to keeping the party from participating in the
elections, this also effectively kept 900 elected municipal officials throughout Spain from being able to run again.
Batasuna was banned because it never condemned ETA terrorist attacks, not because of conclusive proof that it was
involved directly in Basque terrorism. In addition, the party was forbidden to convene demonstrations or political
rallies.
Italy:
The Italian constitution forbids a political party from using means that are not democratic. At the same time, the law
does not expressly forbid a party from having as its final goal something that runs contrary to the constitution or the
principles of democracy.
However, the constitution does forbid a reorganization of a fascist party or a party similar to it. This law was enacted
in 1974 to outlaw the fascist Ordine Nuovo Party.
Austria:
In Austria there is no law enabling the dismantling of a party, although there is a ban on Nazi parties. When the farright Freedom Party of Joerg Haider joined the Austrian government in 2000, the EU clamped unofficial diplomatic
sanctions on Austria, and even discussed kicking it out of the EU. The sanctions against Austria were eventually
relaxed and extended only to Haider and his party.
Holland:
Dutch law forbids incitement to hatred, xenophobia and racial discrimination. According to the Dutch civil code,
"Organizations that aim to promote violence or the support of violence, either in the Netherlands or a foreign country,
cannot be public-benefit organizations, and in fact, are forbidden under Dutch law." The Nationale Volkspartij was
outlawed for inciting hatred and xenophobia in 1998.
Turkey:

The Turkish constitution anchors into law the principle of Turkey as a democratic state that separates church and
state and is run by the rule of law.
A number of parties have been banned on the basis of this constitution. In 1998 the Welfare Party was banned
because of the claim that it ran contrary to the principle of keeping Turkey a secular state. Turkey claimed that the
party backed jihad.
Council of Europe:
The Council of Europe adopted a resolution in 1999 that reads: "Prohibition or enforced dissolution of political parties
may only be justified in the case of parties that advocate the use of violence as a political means to overthrow the
democratic constitutional order, thereby undermining the rights and freedoms guaranteed by the constitution."

EU won't cut PA aid yet, demands Hamas reform

The US and Europe have similar views about aid for a Hamas-led Palestinian Authority government, US Secretary of
State Condoleezza Rice said Monday in London as she tried to persuade other nations to cut off assistance to a
government led by Hamas.
"Everybody is saying exactly the same thing," Rice said amid meetings with other diplomats on Hamas's election
victory last week and its impact on Middle East diplomatic efforts. "There has got to be a peaceful road ahead. You
cannot be on one hand dedicated to peace, and on the other dedicated to violence. Those two things are
irreconcilable."
Rice's comments came prior to a meeting of the Quartet - the US, EU, UN and Russia.
Speaking for the Quartet of would-be, peace-making nations, UN Secretary-General Kofi Annan said Monday that
members of the future Hamas-led PA government must be committed to nonviolence, recognition of Israel and accept
existing agreements.
Annan said Hamas must set up a government that is committed to the rule of law, to tolerance and to sound, fiscal
management.
Despite Rice's comments about "everybody saying the same thing," the tenor of remarks about Hamas coming from
the US and Europe differed somewhat Monday.
"The Hamas Party has made it clear that they do not support the right of Israel to exist," US President George W.
Bush said in Washington. "And I have made it clear, so long as that's their policy, that we will not support a
Palestinian government made up of Hamas. We want to work with a government that is a partner in peace, not whose
declared intentions might be the destruction of Israel."
Rice, moreover, ruled out any US financial assistance to a government led by Hamas.

The EU foreign ministers meeting in Brussels earlier in the day were somewhat less adamant, making it clear that
they would give Hamas some time before cutting off aid.
In a statement released after the meeting, the foreign ministers said: "Violence and terror are incompatible with
democratic processes and urged Hamas and all other factions to renounce violence, to recognize Israel's right to
exist and to disarm."
The ministers said the EU expected the newly elected Palestinian Legislative Council "to support the formation of a
government committed to a peaceful and negotiated solution of the conflict with Israel based on existing agreements
and the road map, as well as to the rule of law, reform and sound fiscal management. On this basis the European
Union stands ready to continue to support Palestinian economic development and democratic state building."
Austrian Foreign Minister Ursula Plasnik, whose country holds the rotating EU presidency, told journalists the EU was
aware of the Palestinians' difficult financial situation.
"We think that everybody should make a concerted effort, so the Palestinian Authority can function," she said.
Meanwhile, British Foreign Secretary Jack Straw said before the EU foreign ministers meeting that Hamas faced a
"big choice" as an organization, as "elections and democracy entail responsibility. You cannot have violence and
democracy at the same time."
Straw advocated a wait-and-see approach on whether to cut off aid to the Palestinian Authority - separate from the
humanitarian aid that is funneled through UN relief agencies.
"We have an opportunity to pause and to think about it," he said, adding that a decision would come after Hamas
formed its government and clarified its position on Israel.
EU External Relations Commissioner Benita Ferrero-Waldner said the EU was facing a difficult decision.
"We don't want a Palestinian Authority that collapses. At the same time, we have to reinforce our benchmark," she
said, adding, "The ball here is clearly in the court of Hamas."
Foreign Ministry spokesman Mark Regev said Israel "welcomed" the EU statement, saying there was a "growing
international consensus that it is impossible to continue with business as usual with the PA following the Hamas
victory."
"The organized international community is placing a clear list of demands before the Palestinian leadership, and if
that leadership does not want to turn the PA into a pariah regime, it will have to act to meet those just demands,"
Regev said.
Nevertheless, other diplomatic sources in Jerusalem admitted some disappointment at the EU statement, saying that
although it did place clear demands on Hamas, it was not strong enough and did not come close to what German
Chancellor Angela Merkel said Sunday: that Europe should not fund the PA as long as Hamas did not recognize
Israel and disarm.

Meanwhile, Prime Minister's Office spokesman Ra'anan Gissin said Monday Israel had made a temporary decision
not to transfer $60 million in taxes and custom revenue on Friday to the PA until it was clear that the money would not
end up in the hands of terrorists.
"This is not a sweeping decision, but a temporary one, until we know that the money will go only to its intended
destination, and not to hands involved in terrorism," he said.
Government officials have been saying for days that although the money was scheduled to be transferred on
February 3, Israel could hold up payment for a few days to see how things developed inside the PA.
Daniel Kennemer contributed to this report.

Zahar: Israel must change its flag

A senior Hamas leader indicated Sunday in an interview to CNN's "Late Edition" that his group's landslide victory in
Palestinian legislative elections changed little in its stance toward Israel.
Mahmoud Zahar reiterated that his movement would not ever recognize Israel's right to exist, nor did he reveal any
willingness to negotiate. "Negotiation is not our aim; negotiation is a method," he said.
Zahar's comments came after Defense Minister Shaul Mofaz said in Sunday's cabinet meeting that Hamas was, at
this point, acting "responsibly," and added that he believed that the organization would soon attempt to rein in terror.
Asked if a Hamas-led Palestinian government would accept Israel's right to exist, Zahar responded, "The question
should be answered first by Israel, because they are not accepting us, except as minority, not the owner of the land."
If Israel would concede to Zahar's stipulations then, Zahar said, the Palestinians would be willing to allow a 10-15
year trial ceasefire "in order to see what the real intention of Israel [was] after that."
The several conditions Zahar named included a demand that Israel change its flag. "Israel must remove the two blue
stripes from its national flag," said Zahar. "The stripes on the flag are symbols of occupation. They signify Israel's
borders stretching from the Euphrates River to the Nile River."
Zahar was also asked if Hamas, which America views as a terrorist organization, would renounce terrorism.
"What is the international definition of terrorism?" he responded. "When (Israeli forces) attack houses by F-16, just
when they are using helicopters, when they are killing people and children and removing our agriculture system, this
is terrorism."
Zahar said Hamas planned to work with Palestinian Authority Chairman Mahmoud Abbas. Abbas leads the Fatah
Party; he was elected to a four-year term last year and remains in power.

"We are going to cooperate with [Abbas], according to the Palestinian national interests, to help the Palestinian
people to live as in a purified system, to fight against corruption," he said.
In response to US President George W. Bush's Friday statement that the United States would cut millions of dollars in
aid to the Palestinian government unless Hamas abolishes the militant arm of its party and stops calling for the
destruction of Israel, Zahar said that Hamas expected the money, but that the aid should not be given conditionally.

Troubled Ford axes 30,000 workers

Bernard Simon, Detroit and James Mackintosh, London
January 25, 2006
FORD Motor will axe almost a quarter of its North American workforce and close seven vehicle factories
by 2012 as the world's third-biggest car maker aims to return its business in the region to profit by
2008.
"We've grown too conservative, too hierarchical and too resistant to change," said Mark Fields, the
executive recruited from Europe last year to devise a north American recovery plan.
Ford, he warned, had to adopt "a change-or-die mentality" and act like "a smaller, more agile
company".
The company intends to cut 25,000 to 30,000 jobs in the region by 2012, and lose about an eighth of its
senior managers by the end of March. The closure of the factories and seven assembly plants will cut
annual capacity by 1.2 million, or just over a quarter, in the next three years.
The plan, dubbed Way Forward, aims to rejuvenate Ford's culture, sweeping aside the bureaucracy that
chairman and chief executive Bill Ford has blamed for producing too many vehicles that have failed to
find favour with customers.

http://mercury.tiser.com.au/adclick/SITE=TAUS/AREA=NEWS.FINANCE/AAMSZ=300X
250/pageid=1

Ford also plans to build a new, low-cost plant in north America, but declined to provide details.
The measures accelerate the pace of change in the troubled US car industry, which is already reeling
from General Motors' plan to eliminate 30,000 jobs by 2008.

Many components suppliers have been forced to file for bankruptcy protection from creditors.
To add to their woes, Ford announced it would reduce material costs, primarily components, by $US6
billion ($8 billion) by 2010, partly by improving global sharing of parts and engineering.
Ford reported better than expected fourth-quarter net income of $US124 million, up from $US104
million a year before. Its shares rose almost 6 per cent to $US8.35 in mid-afternoon trading.
Even so, the North American division still lost $US1.2 billion before tax and special items in 2005, down
from a pre-tax profit of $US1.6 billion in 2004.
Ford said it would take charges of about $US1 billion this year for US and European job losses and
writedowns of assets.
Mr Fields said factory closures were necessary as plants were running at only three-quarters of
capacity.
"The hard but simple reality is that Ford has costs, capacity and staffing that are much larger than our
market share can support even under the best of circumstances," he said.
The United Auto Workers reacted angrily, saying it would "rigorously enforce" its agreement with Ford,
which keeps laid-off workers on close to full pay and benefits.
Union president Ron Gettelfinger warned that the 2007 renegotiation of the US contract would be "all
the more difficult and all the more important" as a result of Ford's plan.
"The restructuring plan announced is extremely disappointing and devastating news for the many
thousands of hard-working men and women who have devoted their working lives to Ford," Mr
Gettelfinger said.
"The impacted hourly and salaried workers find themselves facing uncertain futures because of senior
management's failure to halt Ford's sliding market share," he said.

Ford bosses to cut 30,000 jobs

But theres still time to fight back

By Fred Goldstein
Published Jan 25, 2006 11:00 PM

The Ford Motor Co. launched its long-threatened assault on the workers on Jan. 22 with the
announcement of plans to lay off 25,000 to 30,000 auto workers and shutter 14 plants. It also intends to
lay off 4,000 white-collar staff.
Seven assembly and parts plants are to be closed by 2008 and the rest by 2012. The company aims to
reduce its workforce in North America by 28 percent to stop losses on its operations in the U.S. and
Canada. Fords layoff announcements come in the wake of a similar announcement by General Motors in
December of 30,000 layoffs and the shutdown of nine plants.
Scheduled for the ax are Ford assembly plants in Hazelwood, Mo., outside St. Louis; Wixom, Mich.,
outside Detroit; and Hapeville, Ga., outside Atlanta. It also will close the transmission plant in Batavia,
Ohio, outside Cincinnati; shut down Windsor Casting in Ontario and shut down a shift at St. Thomas, also
in Ontario. It has also been rumored that plants in St. Paul, Minn., and Cuautitlan, Mexico, are on the
chopping block.
The plants named cover less than 10,000 of the intended 30,000 layoffs, leaving workers all over the
continent worrying over whether they will have a job by 2008. This cruel tactic may partly be a result of the
fact that Ford is rushing to appease Wall Street investors by announcing a restructuring before it has been
figured out. But, more importantly, it is also calculated to sow fear and competition among workersto set
plant against plant, each hoping theirs will be spared. And it is meant to minimize the prospects of a
company-wide rebellion.
Billionaire Ford calls for sacrifice
William Clay Ford, grandson of the companys infamous founder, Henry Ford, had the audacity to tell the
workers that Today, we declare the resurgence of the Ford Motor Company. We call our plan The Way
Forward its a strategy that calls for sacrifice at all levels of the company. Ford is not making much of a
sacrifice. In addition to his inherited billions, he earned $22 million last year in salary and cashed-in
stock options. He made $5 million the year before and left $15 million in options unexercised.
The company is pleading that it has to turn its profit picture around. But the fact is that Ford made $3.5
billion in profit in 2004 and $2 billion in 2005. The company has $25 billion in cash on hand. In fact, Fords
profits jumped in the fourth quarter of 2005, pushing its stock price up. Despite reporting losses in North
America, it has enough money to keep the workers on indefinitely and still make a profit on world-wide
operations in the present global market.
Ford employs 324,000 workers worldwide, 122,000 of them in North America. Of these, 88,000 are in the
U.S. at 18 assembly plants, eight stamping plants and 17 powertrain and casting plants. Its market share
of the more than 16 million units sold in the U.S. annually has dropped from 26 percent in 2000 to 17
percent in 2005. It has been operating below 80 percent capacity in North America. The layoffs are
supposed to help turn this situation around.
Most of Fords dramatic decline in sales were due to a drop in demand for gas-guzzling SUVs and trucks
as gas prices rose. Both Ford and GM had largely abandoned the fierce competition with Japanese,
German and Korean auto monopolies for the passenger car market in the 1990s. Out of arrogance and

short-sighted greed, both of these giants chased after the high-profit SUV and truck market. Now,
outmaneuvered by their corporate rivals from Europe and Asia, they are trying to make the workers pay
the price.
Ford is supposed to accompany the layoffs with an aggressive new design and marketing campaign to
rebuild its passenger car business and stabilize its market share. But the workers and the union should
not have to depend upon the ups and downs of the capitalist market for job security.
Whether the bosses are making super-profits or not, the workers have put their sweat and blood on the
line. They have built the company and all its wealth. They have a fundamental right to their jobs,
independent of the business climate. Workers should not be interested in being set up to compete with
other workers over market share in a rat race to the bottom.
Instead of looking at the companys books so that the filthy rich auto bosses can prove hardship, the
United Auto Workers union should declare that a job is a right. In response to an official UAW statement
on the layoffs, UAW member Ron Lare of the Rouge plant told the Detroit Free Press: When Rosa Parks
got thrown off the bus, she didnt just say it was unfortunate. She went out in the streets and started a
movement. The UAW should start a movement to outlaw plant closings.
Violates moratorium
on plant closings
This plant-closing announcement is both a slap in the face and an open challenge to the UAW. The
contract it signed with Ford in 2003 declares a moratorium on plant closings. The company is in violation
of the contract by unilaterally announcing plant closings and tearing up the moratorium in advance of the
2007 negotiations.
Ford announced that the closings would begin in 2008, after the upcoming negotiations. This was a thinly
disguised attempt to legally circumvent the contract. But the company is confronting the workers with a fait
accompli by moth-balling the plants and reducing operations while not officially shutting them down.
UAW President Ron Gettlefinger reportedly blasted Fords plan as extremely disappointing and
devastating news. Moreover, Gettlefinger said a showdown over the wholesale elimination of jobs and
factories is coming at the Big Three national contract talks in 2007. Certainly todays announcement will
make the negotiations in 2007 all the more difficult and all the more important. (Detroit Free Press, Jan.
23)
The official statement by Gettlefinger and UAW Vice President Gerald Bantom, who directs the national
Ford department, is rather mild. However, it ends with an assertion that, whether meant seriously or not,
must be taken with dead seriousness and enforced by the rank-and-file.
The UAW-represented workers affected by todays action are covered by the job security program and all
other provisions and protections of the UAW-Ford National Agreement. Our union will rigorously enforce
those programs, read the statement.

Ford workers, GM workers and the entire membership of the union must see to it that not only their job
security but also the health and pension provisions in the contract are enforced to the letter. Every day in
the capitalist media there is a steady drumbeat of attacks on income security for laid-off workersthe socalled jobs banksin the UAW contract. Under the Guaranteed Employment Numbers (GEN) provision,
workers who are victims of plant closings are entitled to long-term pay.
Also under attack are so-called legacy costs such as workers pensions and retirees health care
coverage.
There are endless complaints from the financial analysts, who find the Ford cutbacks tepid and a first
step. They complain about the so-called extra costs per car that make Ford and GM non-competitive
with European and Asian auto companies. These companies have moved into the South and other rural
areas with anti-labor environments and set up non-union plants all over the country.
Wall Street and Ford would like to use the plight of non-union workers to overturn the hard-won gains of
generations of unionized auto workers. Auto workers pion eered the struggle to establish industrial unions
through sit-down strikes and on picket lines. They have sacrificed to get a small measure of income and
health-care security.
Auto workers have given their lives at difficult labor so that the top executives and rich shareholders who
never came anywhere near a production line could live in luxury.
In 2002, the UAW allowed William Ford to get away with closing five plants and laying off 35,000 workers
under his Back to Basics restructuring plan. Last December, Ford got $850 million in givebacks from
health-care benefits for retirees. All these concessions, instead of appeasing this billionaire company,
have now led to the demand for more layoffs and will undoubtedly lead to demands for more concessions.
Work to rule:
in-plant resistance strategy
The lesson is that no concessions will lead to an end of the attacks. The only answer is organized
resistance.
The rapacious greed of the Delphi auto parts manufacturer, which went to bankruptcy court to reduce
wages by 60 percent and attack pensions and health care, has provoked new currents of rank-and-file
organization. The recently organized Soldiers of Solidarity (SOS) demonstrated against Delphi at the
National Auto Show in January. The UAW international leadership, to its shame, boycotted this very
important opportunity to put a national spotlight on Delphis alliance with the courts and the banks to tear
up the UAW contract.
UAWs concessionary leadership fears SOS for more than just its demonstrations. SOS has been
promoting the tactic of work to rule. This tactic is calculated to take advantage of the companys
vulnerability and allows the workers to resist from inside the plant. It was used by Transport Workers
Union Local 100 in New York City as pressure against the Metropolitan Transit Authority when the union
was preparing for a possible transit strike.

The SOS website, www.soldiersofsolidarity.com, has a lengthy and valuable history and explanation of the
tactic.
The slogan work to rule has a double meaning, it says. Work to rule is a method of slowing production
by following every rule to the letter. The aim is to leverage negotiation. Work to rule is also an invocation
for workers to govern collectively, to control the conditions of their labor. Work to rule means power to the
people.
Work to rule is an in-plant strategy, a method of influencing negotiations without going on strike. Workers
follow the bosss orders but do nothing on their own initiative. They keep their knowledge and experience
to themselves, defer all decisions to the straw boss, and let the pieces fall where they may.
SOS discusses work to rule in the context of the sitdown strikes of the 1930s. It also discusses how
African-American slaves used their music to coordinate the pace of labor. These historical analogies help
illuminate the tactic.
Management thinks they control the plant with their clipboards, portable phones . But when workers
work to rule the bosses find out who really runs the plant, who keeps machines humming, production
flowing and the money coming in.
This tactic, which is being reborn out of the Delphi struggle, can be creatively applied and will hopefully
spread industry-wide under this new barrage of attacks being laid down by GM and Ford. But whatever
tactics are used, it is clear that there is a basis for rank-and-file resistance to these new assaults and
everything must be done to organize and fan the flames of that resistance.
Stop the layoffs! A job is a right! Work to rule!

AMVESCAP PLC: AIM Investments, a unit of Amvescap PLC, said recently it cut
about 100 jobs. 1/3
COUNTRYWIDE FINANCIAL CORPORATION: Countrywide Financial Corp. announced
recently that it plans to close two business units that process home loans for
branches all over the country, cutting about 200 jobs in California and about 100 in
Sunrise, Florida. The closures are part of Countrywide's strategy to increase its
mortgage market share to 30 percent by the end of the decade even as it deals
with an industrywide slowdown in demand. Countrywide Home Loans' consumer
markets division is shifting the emphasis from larger centers that deal with loans on
a national basis to smaller regional operations centers that process loans for a
group of branches within a region. 1/3/2006
LEGG MASON INC.: Legg Mason Inc., which recently said it had acquired nearly all
of Citigroup Inc.'s asset-management business, plans to cut 300 to 400 jobs in
connection with that acquisition. Legg Mason has said it adopted a plan, under
which employment of certain employees of the asset-management business, known
as CAM, are to be terminated. 1/3
CHIQUITA BRANDS INTERNATIONAL INC.: Chiquita Brands International Inc. said
recently it will close processing plants in Manteno, Ill., and Kansas City, Mo., to cut
costs, eliminating about 100 jobs from its fresh-cut fruit processing operations in
the Midwest. The closings are part of a previously announced plan to achieve $20
million in annual savings within three years of acquiring Fresh Express. 1/3
PEPSICO INC.: Snack maker Frito-Lay Inc. says it will stop regular work at its
headquarters building and call in all 2,000 employees for meetings at which 250 of
them will learn they have lost their jobs. The company announced the cuts and
picked the jobs to eliminate, but individual employees will not learn their fate until
one-on-one meetings with supervisors. Frito-Lay has about 46,000 employees and
is the $9.6 billion snack food division of PepsiCo Inc. of Purchase, N.Y. It claims to
be the nation's largest snack maker. 1/3
NEW PROCESS GEAR INC.: The New Process Gear plant, which just received state
money to keep people working, will lay off hundreds of employees in rotating
temporary layoffs. The layoffs will affect union and management alike as the
automotive-parts supplier cuts production to match slowing demand from
automakers. A general slowdown in the automotive industry is to blame. The plant
laid off 60 workers as part of an earlier announcement. 1/3
ROYAL AHOLD N.V.: U.S. Foodservice Inc. will lay off nearly 120 workers and close
a manufacturing plant that makes paper and plastic products for commercial and

institutional customers. The plant makes straws, lids, food trays and toilet paper for
colleges, hospitals and restaurants. Columbia, Md.-based U.S. Foodservice sells
food and related products to government and institutional users. Owned by Royal
Ahold NV of the Netherlands, it has been plagued in recent years by an accounting
scandal and poor financial results. In addition to U.S. Foodservice, Royal Ahold
owns Tops Markets LLC of Buffalo and the Giant and Stop & Shop supermarket
chains. The SQP closure was part of a Nov. 29 announcement by Royal Ahold that it
would reorganize U.S. Foodservice and shed certain of its business lines. 1/3
STURM, RUGER & COMPANY, INC.: Sturm, Ruger & Co. plans to lay off or reassign
some workers. The gun manufacturer, based in Southport, Conn., said that with
other workers retiring, it expects to reduce its workforce by 50 or 60 jobs. The
company employs about 1,000 people in Newport at a firearms plant and Pine Tree
Castings, a precision castings foundry. 1/3
TRIBUNE COMPANY: Tribune Co.'s Newsday, distributed in the New York metro area,
cut 72 non-news positions recently. 1/3
ANTIGENCIS INC. Antigenics Inc. said recently that it is cutting 81 jobs, or about
32 percent of its work force, as part of an effort to stretch its cash in case of
negative results from a late-stage study of an experimental kidney cancer drug. In
October, Antigenics said that preliminary data from a skin cancer trial of the drug
suggested that it extended patients' lives, but the results were not statistically
significant. 1/3
RETAIL BRAND ALLIANCE, INC.: Retail Brand Alliance has told the state that it will
lay off 84 employees, bringing the total number of layoffs at the retailer to more
than 250 since the fall. RBA is one of the town's major employers and at its peak
between 800 and 900 people worked there. The layoffs are due to RBA's closing the
525 stores in its Casual Corner clothing chain, where sales had been deteriorating.
1/3/2006
NATIONAL SERVICE INDUSTRIES INC.: A linen company that has supplied the
Charleston-area since the 1960s is closing a commercial laundry plant, laying off 86
employees. National Linen and Uniform Service plans to close the North Charleston
facility soon and consolidate operations with a plant in Savannah, Ga. National
Linen is a subsidiary of Atlanta-based National Service Industries Inc. 12/28
ACI TELECENTRICS, INC.: Five dozen employees at ACI Telecentrics lost their jobs
when the head office closed the Chadron operation. ACI Telecentrics describes itself
as provider of telephone and Internet-based sales, customer service and marketing
services. ACI had been operating in Chadron since 1997. Two hundred employees in

Schererville, Ind., and 30 people at the ACI offices in Minneapolis also lost their
jobs. 12/28
INTERSTATE BAKERIES CORPORATION: Interstate Bakeries Corp. recently
announced consolidation plans that will result in the elimination of 750 jobs in 16
states but no bakery closings. The moves in the North Central, South Central and
Southeast profit centers will affect 450 employees through the closure of
distribution depots and thrift stores and the consolidation of delivery routes. The
South Central region includes Kansas and Missouri. The company declined to say
how many jobs were being eliminated in each profit center and also declined to
provide specifics on job losses in the Kansas City region. 12/28
NOVELL, INC.: Novell acknowledged it will lay off some 600 workers, 10 percent of
its workforce, due to a restructuring. 12/28
FORD MOTOR COMPANY: Ford Motor Co. plans to eliminate about 4,000 white-collar
jobs in North America early next year as part of what the automaker has called a
painful but essential restructuring plan. 12/20
CENTRIX FINANCIAL LLC: Centrix Financial, a Centennial-based provider of
subprime auto loans, cut 100 jobs recently in a corporate restructuring. The
privately held company has automated its loan-approval process. The intermediary
between auto dealers and loan providers also saw demand from credit unions, its
major source of capital, dry up last summer. Subprime loans are made to borrowers
with impaired credit ratings.
12/20
CUNA MUTUAL GROUP: As expected, the job cuts continue at CUNA Mutual Group.
The company, which is in the midst of a comprehensive three-year review of
operation as it seeks to cut costs and become more competitive in a consolidating
industry, announced recently it would be cutting 147 jobs at its Madison
headquarters and 38 at its office in Waverly, Iowa, as it outsources some backoffice support work. The cuts are the third round of layoffs that CUNA Mutual has
announced in the past two months. And, there will be more changes coming. Before
the cuts, the company had about 2,600 employees locally, and 6,000 overall. Tasks
to be outsourced include housekeeping, grounds maintenance, marketing, printing
and cafeteria work. 12/20
THE ADVEST GROUP, INC.: About 300 workers at the downtown Hartford
headquarters of Advest will lose their jobs once the Hartford-based brokerage is
acquired by Merrill Lynch & Co. Advest's Hartford headquarters represents about a
quarter of the company's workforce of 1,560, which includes 515 brokers spread

out across the Northeast, the Midwest and Florida. 12/19

INTERSTATE BAKERIES CORPORATION: Interstate Bakeries Corp. said it is laying off
450 workers as it consolidates operations in three regions across the country. The
bankrupt baker of Wonder Bread and Hostess Twinkies said the closure will
eliminate the positions of store clerks, salespeople and delivery people in nine
states. 12/19
CONSOLIDATED METCO INC.: Consolidated Metco Inc. of Portland, Ore., will merge
its Cashiers, N.C., structural injection molding operation into its other North
Carolina facilities by the first quarter of 2006. The move will affect 120 jobs. The
Cashiers facility is landlocked, making expansion impossible. Cashiers is in the
southern crest of the Blue Ridge Mountains, where access to highways does not
compare with other areas. 12/19
BIOGEN IDEC INC.: Biogen Idec has undergone a makeover in the more than eight
months since the company recalled Tysabri, its promising multiple sclerosis drug,
because a patient taking it died. The company has laid off 650 workers and sold an
unused California plant to pare costs, and formed a partnership to help revenues
that were hurt by the loss of what was supposed to be a blockbuster drug.
12/19/2005

THE MOORE COMPANY: More than 200 employees will lose their jobs at an Edenton
manufacturing plant when the company moves most of its operations to Central
America in the coming year. The decision by George C. Moore Co. is the result of
the recently adopted Central American Free Trade Agreement. The plant weaves
and dyes elastic materials used by the textile industry, and has been in this city in
the northeastern part of the state since the 1960s. The Rhode Island-based
company told area officials of its plans on Wednesday.
1/3
FORD MOTOR COMPANY: The No. 2 automaker will close 5 North American plants
employing 7,500 workers as part of a restructuring plan, according to a published
report. The plants include 3 in the U.S. and 2 in Canada and Mexico. The report
appeared a day after Ford said Nov. sales of its 3 main brands fell 18%. Ford's
North American operations have lost $1.4 billion this year. 12/27
DOMTAR INC.: Forestry giant Domtar Inc. shut down its Lebel-sur-Quevillon pulp
mill in northwestern Quebec recently, cutting 425 jobs, the latest in a string of mill
closures that has battered the Canadian forestry industry. The Montreal pulp, paper

and lumber producer said it closed the mill because of rising costs and weak
markets for pulp. The Lebel-sur-Quevillon mill employs 425 workers and produces
about 300,000 tonnes of kraft pulp a year. Domtar's cut follows similar closures by
a number of Canadian pulp and lumber companies in recent months as they cope
with the financial pressures caused by rising energy costs, weak markets and a
stronger Canadian dollar, which has made their products more difficult to sell in the
key American market. Domtar is North America's third biggest producer of free
sheet paper, which is used for photocopying, as well as a major producer of
business papers and other products. The company has 10,000 employees across
North America. 12/27
GREENBRIER COMPANIES: Greenbrier Cos., a builder and refurbisher of railroad
freight cars, said recently that it would cut 400 jobs at its TrentonWorks plant in
Nova Scotia, Canada, as it reduces production at the facility. Greenbrier said it will
move to a one-line operation at the TrentonWorks plant effective soon. The
company also said it will move new railcar production to its plants in the United
States and Mexico, which have lower costs, greater operating flexibility, and
favorable currency exchange rates. 12/27
MAYTAG CORPORATION: A Hoover Co. production line that makes machines used to
clean floors and carpets will shut down, eliminating 275 jobs as the company's
parent shifts work to lower cost plants. The Eagle line's injection-molding machines
will go to El Paso, Texas, with final assembly of the floor cleaning extractors in
Juarez, Mexico. The machines put water and cleaning liquid onto carpet or hard
floors and sucks dirt and the water back into a container. The North Canton plant
has about 1,075 hourly workers, down from about 1,500 as recently as 2003. The
plant still will produce some steam vacuums, canister vacuum cleaners, commercial
uprights and a small floor scrubber and polisher. 12/27
SHERMAG INC. Shermag Inc. is closing its upholstered furniture factory in Montreal,
cutting 70 jobs, as the company continues to restructure in the face of foreign
competition and the higher Canadian dollar. The company, based in Sherbrooke,
Que., said recently it will close the Sofas International division and consolidate its
upholstery operations at the Jaymar plant in Terrebonne, near Montreal. Shermag,
a vertically integrated manufacturer with its own tree-cutting rights, sawmills,
veneer plant and manufacturing operations in Quebec and New Brunswick, has
more than 1,800 employees. 12/27
ALCAN INC.: Aluminum producer Alcan Inc. said it will close its plastic packaging
plant soon and lay off all 221 employees. The Canadian-headquartered company
said production from Alcan Packaging Centralia, which produces packaging for the
pharmaceutical and personal care markets, will be transferred to other company

plants in North America. The company employs about 70,000 people worldwide and
has 37 packaging plants in 12 countries. 12/27
MERCK & CO., INC.: Faced with thousands of Vioxx lawsuits, the loss of patent
protection for a key product and a weak array of drugs in development, Merck & Co.
is letting go more than 7,000 employees and eliminating five production plants. The
moves, announced recently as part of a global reorganization company officials said
is designed to make Merck more efficient and competitive, drove shares down more
than 4 percent. Merck will immediately start cutting 7,000 jobs, about half of those
in the United States. The company's manufacturing sector will take the biggest
percentage of cuts, about 60 percent, while the rest will be spread around the
company. By the end of 2008, Whitehouse Station-based Merck plans to close or
sell five of its 31 manufacturing plants, scale down operations at some others and
close three other facilities, one research site and two preclinical development sites.
The company did not specify which plants would be closed. Merck employs nearly
63,400 people, including a total of 31,000 in the United States. 12/27
MANITOBA TELECOM SERVICES: MTS Allstream has announced parts of its
Transition Phase II Plan, which it envisages will save the company C$100 million
(US$85.6 million) over the next two years. Some C$50-60 million in annualized
cost savings will come from laying off 750-800 people, mostly in the first half of
2006. MTS Allstream also plans to achieve cost savings through further divisional
integration, organizing around customer segments and greater management of
network costs. 12/27
GENERAL MOTORS CORPORATION: General Motors Corp. announced plans recently
to cut 30,000 manufacturing jobs and close nine North American assembly,
stamping and powertrain facilities as part of an effort to get production in line with
demand and return the company to profitability and long-term growth. The
restructuring plan, will cut about 9 percent of its global work force. GM also will
close three service and parts operations facilities as part of the manufacturing cuts.
The plan will cut the number of vehicles GM is able to build in North America by
about 1 million a year by the end of 2008. GM said the assembly plants that will
close are in Oklahoma City, Lansing, Mich., Spring Hill, Tenn., Doraville, Ga., and
Ontario, Canada. A shift also will be removed at a plant in Moraine, Ohio. An engine
facility in Flint, Mich., will close, along with a powertrain facility in Ontario and metal
centers in Lansing and Pittsburgh. Parts distribution or processing centers in
Ypsilanti, Mich., and Portland, Ore., also will close, as well as one other to be
announced later. 12/19
GKN PLC: British aerospace and automotive group GKN PLC will cut nearly 300 jobs
by closing its plant in Sanford, the company said. The plant produces a drive-shaft

component used to transfer power from a car's engine to its wheels. GKN also plans
to shut down its plant in Columbia, S.C. Work at the plants will move to a new plant
in Mexico and plants in Mebane and Roxboro. 12/19
CANADIAN IMPERIAL BANK OF COMMERCE: The Canadian Imperial Bank of
Commerce said its profit rose for the fourth quarter but it posted a loss for the full
year due to a big charge to settle Enron-related litigation. The company also said it
was changing how it determines compensation for its CEO and said it plans to cut
more than 900 jobs this year. 12/19

So the basic logic in Washington is:

So what? Weve been doing it for years so why should we stop now?

I think they forget that Americans died for freedom from tyranny from
foreign governments. Instead we are selling out to foreign companies
from foreign governments who are not interested in our safety and
security. I dont think that handing Port Management to the UAE is a good
idea.

Lets just go ahead and pull our troops out of the Middle East and bring
them to our ports to work at securing our freedom and inspecting every
cargo shipment that comes into this country. We dont need the UAE to
fight the war on terror. We certainly dont need them to manage American
ports!

Pretty sad hour for American History.

HOW DID THIS DEAL END?

WE HAVE GOOD NEWS FOR THIS PARTICULAR SITUATION.

THANKS TO HARD WORKING NATIONAL SECURITY AGENCY AGENTS; THANKS TO THE

NATIONAL COAST GUARD DOCUMENTS; THANKS TO GOOD REPUBLICAN LEADERS,
THIS STORY ENDED VERY WELL WITHIN A SHORT PERIOD OF TIME..ANY SANE MAN
WOULD HAVE BEEN OUTRAGED AT WHAT HAPPENED IN THIS SITUATION AND WE
CAN PRAISE GOD THAT THIS DEAL FELL THROUGH..

Dubai Company to Give Up Stake in U.S. Ports Deal

http://www.foxnews.com/story/0,2933,187307,00.html

WASHINGTON A United Arab Emirates-owned company said Thursday it would give up its
management stake in a controversial ports deal that has taken Washington by storm and has
caused massive upheaval in the president's own party.
The Thursday announcement came just hours after Republican leaders warned President Bush that the
House and Senate appeared ready to block Dubai Ports World from taking over some terminal
operations at six U.S. ports.
"Because of the strong relationship between the United Arab Emirates and the United States and to
preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations
North America to a United States entity," DP World's chief operating officer, Edward H. Bilkey, said in a
statement, read on the Senate floor by Sen. John Warner, R-Va.
The company said its decision was "based on an understanding that DP World will have time to affect the
transfer in an orderly fashion and that DP World will not suffer economic loss."
The announcement was somewhat of a blow for Democrats, who were pushing for a Senate vote on an
amendment that would halt the deal. The Senate later voted 51-47 to ignore GOP requests to wait until a
45-day review of the deal is completed before they try to stop it. Republican leaders needed 67 votes to
stop debate on the measure.
"This should make the whole issue go away," said Senate Majority Leader Bill Frist, holding up a copy of
the DP World press release that announced the U.S. ports concession. "The [review] process is underway
... we should not have to interrupt it on the floor of the United States Senate."
A Warner spokesman told FOX News that based on conversation between his boss and DP World
lawyers, "we understand this is a full divestment or sale of the U.S. operations of P&O." That would mean
the Senate amendment would essentially be off the table.
Democrats were pushing that amendment to lobbying reform legislation to ensure that no UAE-related
company has any control over U.S. port operations, particularly since so few details of the latest DP World
plan is known. The amendment, sponsored by Sen. Charles Schumer, would not only block the Dubai
deal, but also other U.S. ports deal with any company wholly owned or controlled by any foreign
government that recognized the Taliban in Afghanistan from 1996-2001.
If they succeeded in forcing a vote on the amendment, Democrats could then claim a big election year
win in the area of national security an area Republicans generally have a stronger track record on.
"The bottom line is, security has to come first. We know that this deal would not bring security," Schumer,
D-N.Y., told reporters Thursday. "We had to force this vote, it's unfortunate that we did but now the
handwriting is on the wall and that is that the UAE will not operate ports in the United States of America,
plain and simple."
The political firestorm erupted after the administration approved a plan to hand over some terminal
currently operated by the British company, Peninsular & Oriental Steam navigation Co., to the UAEowned DP World.
DP World finalized its $6.8 billion purchase earlier Thursday of P&O, which through a U.S. subsidiary runs
important operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. It also
plays a lesser role in dockside activities at 16 other American ports.

The deal in question, however, focused primarily on lucrative Asian markets. DP World valued its rival's
American operations at less than 10 percent of the nearly $7 billion total purchase.
A senior Frist aide told FOX News that the Senate majority leader and his staff informed DP World and
UAE government officials Wednesday night to pull the plug on the deal. When asked what prompted this
action from Frist, the aide said the House action Wednesday night created a "destabilized coalition among
House and Senate GOP."
Just one night before, GOP-led House Appropriations Committee passed a bill blocking the deal. Bush
has vowed to veto any measure halting the deal.
By attaching it to a larger must-pass $91 billion spending bill funding wars in Iraq and Afghanistan, as well
as hurricane recovery, lawmakers are challenging Bush: If he follows through on his veto threat, he would
also be vetoing the entire package.
Earlier Thursday, the White House said Bush was open to compromise but expressed concern that the
House GOP tactic could "slow down passage of vital funds and resources" and said Bush's veto threat
still stood.
"It does provide a way forward and resolve the matter," White House spokesman Scott McClellan said
later, after the DP World announcement. "We have a strong relationship with the UAE and a good
partnership in the global war on terrorism and I think their decision reflects the importance of our broader
relationship."
The administration has repeatedly argued that port security would not be outsourced as part of the deal
and that the UAE is a strong ally in the War on Terror since the Sept. 11, 2001, attacks.
'The Devil's in the Details'
With the latest DP World news, many members of Congress who thus far have been critical of the deal
may be much more positive toward it.
"It resolves all of the security issues involved," Rep. Peter King, chairman of the House Homeland
Security Committee and a lead critic of the deal, told FOX News. "It's a very positive step and now we can
go forward on overall legislation dealing with the ports."
"DP World's agreement is a positive outcome," added Rep. Pete Hoekstra, R-Mich., the chairman of the
House Select Committee on Intelligence. "I hope that it will not impact our strong relationship with the
United Arab Emirates, a valuable ally in prosecuting the War on Terror."
Added Sen. Wayne Allard, R-Colo." "Dubai's decision to withdraw, and turn over management of the ports
to a U.S. company, certainly relieves those concerns. Congress still has a critical roll to play in decisions
that affect ports security, and national security overall."
But many lawmakers, particularly Democrats, are still cautious, arguing that DP World has to let go of all
control over any firm that may take over the port operations.
"The devil's in the details," Schumer said. "Those of us who feel strongly about this issue believe that the
U.S. part of the British company should have no connection to the United Arab Emirates or DP World."
On the Senate floor Thursday, Sen. Frank Lautenberg, D-N.J., argued that with Dubai's record of failing to
recognize Israel, among other things, it's "crazy" to do business of any great magnitude with a UAEowned firm.

"We ought to play showdown here, to use the expression, and vote whether or not we want this deal to go
through," Lautenberg said. "It's not political, just do it."
Senate GOP leaders had been hoping to prevent any votes until the conclusion of a 45-day review of the
deal, being conducted by the U.S. Committee on Foreign Investment in the United States (CFIUS).
"The right thing to do right now is not to vote on this [Schumer] amendment," Sen. Tom Coburn, R-Okla.,
said Thursday on the Senate floor. "The amendment attempting to be offered is a political stunt, not based
on knowledge of what is and isn't the facts. ... We can beat up on the president but the fact is, he's
operating under the law. He has not broken law. Now maybe the law needs to be changed ... [but] we've
got 45 days. And if true that this should not go through, then we'll stop it ... but it will be on the basis of
fact, not politics."
Frist tried to argue that the lobbying reform bill should be dealt with before the ports issue; before
Schumer's actions Wednesday, Senate Democrats had earlier said they would not try to attach ports bills
to the lobbying measure. But Democrats were demanding that a specific time and date be set to debate
and vote on the hot-button topic. Instead of giving them a date, Frist on Thursday ended debate on the
lobby reform bill -- Democrats' self-proclaimed "signature issue" -- altogether and moved on to a budget
bill.
"It is disappointing that the Senate is not completing action this week on lobbying reform legislation. This
bipartisan legislation is critical to help restore the public's eroding confidence in the integrity of the
government's decisions," said Governmental Affairs and Homeland Security Committee Chairwoman
Susan Collins of Maine, who has been a leader on both issues. "I fear that this delay could jeopardize this
important bill and that it could become a casualty of a crowded calendar."
An aide to Collins said that though Frist said he would attempt to bring back up lobby reform next week,
"my boss thinks this will become victim to some must-pass bills."
On the House side, Democrats charge that the House Appropriations bill doesn't do enough and that the
administration should be prevented not only from going through with this deal involving the UAE-owned
company, but also from future deals allowing foreign-government owned companies from controlling U.S.
assets.
"The Republican [House] proposal only stops President Bush's current backroom Dubai ports deal. It
does not prohibit future ill-advised Bush administration agreements that will let other firms controlled by
foreign governments operate in U.S. ports, nor does it address the lack of U.S. cargo security, which
poses an even larger threat," said House Democratic Leader Nancy Pelosi of California.
But House Republicans feared that if they did not move to block the deal now, Democrats would beat
them to it.
"There's no way that we should or will, leave the national security issue to the Democrats," Senate
Banking Committee Chairman Richard Shelby, R-Ala., told FOX News on Thursday. "We could pay a
price in the fall [elections] and we cannot afford not to do this."
Democrats said the Dubai deal is just a small part of the broader issue of port security that they say the
Bush administration has not paid enough attention to.
"Dubai deal or no Dubai deal, it's clear that this is just the tip of the iceberg of the administration's failure
on port security," said Sen. John Kerry, D-Mass. "A new report from the Department of Homeland Security
shows that Target does a better job monitoring their stores than our government does monitoring our

ports. Their failure to put together a basic program after all the warnings must be a wake-up call to finally
get it right on homeland security."

House Panel Votes to Block Ports Deal

http://www.foxnews.com/story/0,2933,187147,00.html

WASHINGTON Despite a presidential veto threat, a House committee on Wednesday voted to

block a controversial ports deal that has President Bush in the hotseat.
The House Appropriations Committee passed an amendment to a $92 billion emergency supplemental
funding measure for hurricane recovery and wars in Iraq and Afghanistan. The committee vote was 62-2.
"The amendment is straight-forward and is a rifle shot crack to block the Dubai Ports World deal only. This
is a national issue. This is a national security bill. We want to make sure that the security of our ports is in
America's hands," said committee Chairman Jerry Lewis, R-Calif.
House Republicans led the charge to pass legislation that would block an administration-approved plan to
hand over some terminal operations at six U.S. ports to a UAE-owned company, Dubai Ports World. A
British company, Peninsular & Oriental Steam Navigation Co., currently operates the terminals in
question.
House Republicans feared that if they did not move to block the deal now, Democrats would force their
own vote that would be successful. That would only invite criticism of the GOP's national security record,
which historically has been the party's strength.
Meanwhile, Senate Democrats raced to get a vote on the ports deal in the GOP-led Senate late
Wednesday.
"We believe an overwhelming majority will vote to end the deal," said Democrat Charles Schumer of New
York, who introduced an amendment to lobby reform legislation that would also block the deal.
Schumer's efforts brought Senate business to a halt, since GOP leaders said they weren't notified of the
move. Democratic leaders then basically charged Republicans with purposefully quashing the
amendment.
"It infuriates the majority that Senator Schumer offered this amendment," Senate Democratic Leader
Harry Reid told reporters late Wednesday afternoon. "This is typical spin by Republicans in Washington
rather than talk about substantive issues, they get things moved ... to procedure. We want to vote on
the Dubai ports scandal is that asking too much? ... I want to terminate the deal."
Amid the political infighting over who would introduce this legislation first, Bush signaled that he still wants
the deal to go through.
"The president's position is unchanged," White House spokesman Scott McClellan told reporters on Air
Force One while traveling with the president to New Orleans. "We're continuing to work closely with

Congress. We recognize that some members have concerns. The lines of communication are open. ...
There are a lot of conversations going on between the company and Congress and the administration."
House Majority Leader John Boehner told FOX News on Wednesday that the White House has fumbled
its handling of the ports deal and that he has "deep concerns" about the ports deal. While he said there
are ways to defend the deal, the White House isn't doing it.
"You can talk about it until you are blue in the face, and you're not going to convince anybody," Boehner
said.
Asked if House Republicans were ticked off with Bush, Boehner said: "A lot of my colleagues are. I wish it
wasn't the case, but it is." Boehner said those sentiments are not shared by House GOP leaders,
however, adding, "that would go a bit too far."
Dems Trying to Act 'Sooner Rather Than Later'
Because of this House GOP move, Democrats in the Senate scrambled to act, despite former promises
not to try to attach ports bills to the lobby bill.
Schumer tried to offer an amendment to lobby-reform legislation that said no company wholly owned or
controlled by any foreign government that recognized the Taliban's authority in Afghanistan from 19962001 may own, lease, operate or manage U.S. properties or facilities.
But Senate action on the lobby reform bill ground to a halt when Schumer took the floor with his
amendment.
Senate Majority Leader Bill Frist sent a senior aide to tell the press that Schumer "misled" the Senate and
by offering such an unrelated amendment to the lobby reform bill, had "violated the customs of the
Senate," calling this "inappropriate and wrong."
The aide said Frist would strike back by filing cloture to shut down a filibuster. That means if Frist gets 60
votes, he can shut down all irrelevant amendments to the lobby reform bill, and Schumer's amendment
dies.
"There's a CFIUS process in place, a 45-day review. The president then has 15 days to act. Then
Congress has a right to act after that," the Frist aide said.
CFIUS is the U.S. Committee on Foreign Investment in the United States, which conducted the original
security review of the deal and which has come under fire from congressional lawmakers for what they
say was a less-than-thorough review of the potential security implications of having a foreign governmentowned company run some U.S. port operations.
"They'll come up with whatever excuse it takes not to have such an amendment," Schumer told reporters,
adding that he will continue to offer his amendment until such a vote is had.
Reid spokesman Jim Manley told FOX News that the Schumer language was used to get around a
constitutional prohibition against Congress enacting or passing bills that singles out particular person or
company for punishment without the benefit of a trial.
When asked why the legislation was being introduced now, Manley said, "Reid had consistently said that
he would not offer ports-related amendments to the lobby legislation on the floor," however, "the reality,
given what happened last night [House GOP moving to block the deal], we needed to do something
sooner rather than later."

Schumer earlier left a Democratic Steering Committee meeting and said, "We feel the time has come to
do something about Dubai Ports World."
One member attending the meeting said that Sens. Frank Lautenberg of New Jersey, Schumer, and
Byron Dorgan of North Dakota all stood up and basically said the Democrats are going to miss the boat if
they don't strike now.
King and Schumer said they would not support DP World having any role in operations at the ports, and
Schumer said that the Senate was not going to support that idea, either.
King said he would consider a deal that would include DP World, but only if an American company were in
charge of operating the ports, and ensuring the Dubai company wasn't allowed access to information from
the contract with the U.S. company.
But "the political reality is, if you have three weeks to explain it, and you can't explain it ... it's time to end
it," said King, the chairman of the House Homeland Security Committee.
But one Senate aide told FOX News that the Senate might be more willing to support the administration's
position than the House has. A Frist aide said the majority leader has urged Treasury Secretary John
Snow to keep the Senate abreast of a government panel's 45-day review of the deal.
Frist told Snow that he must "directly work with the members of the Senate to make crystal clear what's
going on with CFIUS and the Dubai Ports World deal investigation and do so now," the aide said.
Until now, GOP leaders have avoided sending the president any measures he wouldn't sign. And although
he's issued threats, Bush has yet to veto any legislation in more than five years in office.
Efforts by the Bush administration to quell the controversy including repeated arguments that port
security would not be outsourced have failed. The White House even reluctantly agreed to conduct a
broader investigation into potential security risks of DP World's plans, but that has not been enough.
Most Americans oppose allowing a Dubai company to run some U.S. ports, even as a majority
understands the U.S. would continue to control port security, according to a new FOX News poll. One in
four sees the United Arab Emirates as a strong ally, but most either disagree or are unsure. The poll
found that 69 percent of Americans oppose the deal four times as many as support the deal (17
percent).

Treasury Dept. Orders U.S. Banks to Cut Syria Ties

http://www.foxnews.com/story/0,2933,187403,00.html

WASHINGTON Acting to crack down on terrorist financing, the Treasury Department on

Thursday ordered all commercial banks in the United States to end their relationships with two
Syrian banks.
The order covers the state-owned Commercial Bank of Syria and its subsidiary, the Syrian Lebanese
Commercial Bank.
The department said that all U.S. banks must close any accounts they have with the two banks.

"Today's action is aimed at protecting our financial system against abuse by this arm of a state-sponsor of
terrorism," said Stuart Levy, Treasury's undersecretary for terrorism and financial intelligence.
"The Commercial Bank of Syria has been used by terrorists to move their money and it continues to afford
direct opportunities for the Syrian government to facilitate international terrorist activity and money
laundering," Levy said.
A message left Thursday with a spokesman for the Syrian Embassy was not immediately returned.
The order makes final a preliminary order against the two banks that Treasury issued last May.
At that time, Treasury issued a finding that the Commercial Bank of Syria was a "primary money
laundering concern" under provisions of the Patriot Act that allow the department to cut off dealings of
U.S. banks with foreign banks that receive such a designation.
"As a state-owned entity with inadequate money laundering and terrorist financing controls, the
Commercial Bank of Syria poses a significant risk of being used to further the Syrian government's
continuing support for international terrorist groups," Levy said.
He said that the serious risks posed by the Syrian bank "have not been adequately mitigated" by the
Syrian government's limited efforts to address problems in its financial system.
With the announcement, the Treasury has moved to shut down U.S. activities of nine foreign banks under
provisions of the Patriot Act.
The action against the banks does not freeze their funds in the United States. It prohibits U.S. banks from
holding accounts of those banks. Such accounts are used by foreign banks to do business in the United
States if they do not have subsidiaries in this country.

SUNSTAR:
THE NEWS AS OF March 10, 2006: IRAN WAS THREATENING TO CUT OFF
OIL SUPPLY for the United Nations Economic Sanctions imposed as a result
of their NUCLEAR ARMS & WEAPONS PROGRAMS. Bush is currently
pushing for new technologies to help America become independent from
foreign oil. Although we all united against Bush on the Ports issue, we are
all united with the thought of severing our ties with Islamic Nations who
are in control of oil production and hopefully, car companies will get hip
and revert to electric cars, hybrids, and other technologies to keep us all
rolling without having to dress up our souls and our wars with oil.

May God bless the leaders of America with wisdom during World War III!

Iran: Referral to Security Council by IAEA Is 'Unjust'

http://www.foxnews.com/story/0,2933,187301,00.html March 9, 2006
TEHRAN, Iran Iran's supreme leader and its president said Thursday that Tehran would not
abandon its nuclear program and rejected its referral to the U.N. Security Council as unjust.
Supreme leader Ali Khamenei, who has the final say in all state matters, told a group of clerics that Iran
would not drop its nuclear ambitions, state television reported.
"Authorities are obliged to continue toward achieving advanced technology, including nuclear energy," he
said. "The people and the government will resist any force or conspiracy."
He charged that Washington was looking for an excuse to continue what he called a psychological war
against his country.
"This time, they have used nuclear energy as an excuse. If Iran quits now, the case will not be over. The
Americans will find another excuse," he said.
President Mahmoud Ahmadinejad was similarly defiant in the face of mounting international pressure
on Iran over its nuclear program. He warned that the West will suffer more than Iran if it takes action
against its nuclear program.
"They know that they are not capable of causing the least harm to Iranian people," Ahmadinejad said
during a visit to Iran's western province of Lorestan, according to the ISNA news agency. "They will suffer
more."
Just a day earlier, Iran threatened the United States with "harm and pain" as the 35-nation board of the
International Atomic Energy Agency ended a three-day meeting in Vienna, Austria, over Iran's nuclear
program, formally opening the path to Security Council action.
The Security Council, whose action could range from a mild statement urging compliance to sanctions or
even military measures, was expected to debate the issue next week.
The IAEA put the council on alert over the issue last month but delayed any action to give more time for
diplomacy under an agreement by the United States, Russia, China, France and Britain the five
permanent Security Council members that wield veto power.
The five countries met in New York on Wednesday to discuss a first response to the crisis.
Washington is seeking harsh measures against Iran, but economic and political sanctions are unlikely
because of opposition from Russia and China, which have strategic and commercial ties with Tehran.
U.S. Undersecretary of State Nicholas Burns suggested Wednesday that America would push for
sanctions if appeals and demands failed.
But Russian Foreign Minister Sergey Lavrov indicated that Moscow would not support sanctions, and he
ruled out military action.

Wednesday's IAEA meeting featured an intense debate over a critical report on Iran's nuclear program.
Soon after the meeting ended, IAEA chief Mohamed ElBaradei said he would send the report to U.N.
headquarters in New York within 24 hours.
ElBaradei cast Security Council involvement as a continuation of diplomacy. He suggested Washington
might need to talk to Iran directly if negotiations reach the stage of focusing on security guarantees to
Tehran in exchange for concessions on its nuclear program.
ElBaradei's report accused Iran of withholding information, possessing plans linked to nuclear weapons
and refusing to freeze uranium enrichment a possible pathway to nuclear arms.
Enrichment can produce fuel for a nuclear reactor or fissile material for an atomic bomb.
Tehran's newspapers published news of the IAEA decision on their front pages Thursday. The official
Persian-language daily Iran called the move "a message of weakness and failure" by the nuclear agency.
A senior British official said Thursday that Iran could acquire the know-how to build a nuclear bomb within
a year, but it would take much longer than that to construct a weapon.
The government official, who briefed reporters on condition of anonymity because he wasn't authorized to
publicly disclose the information, called a year "a realistic period" to get the technology.
The official did not outline how the government reached its assessment of how long Iran might need to
construct the weapon.
The official said that even if Tehran is able to develop the technology, it was still uncertain whether Iran
would eventually be able to construct a bomb given international efforts to prevent it from acquiring the
necessary equipment.
A total of 195 Iranian lawmakers, meanwhile, issued a statement urging authorities to implement a law
passed last year requiring the government to block intrusive inspections of Iran's nuclear facilities if it is
referred to the Security Council.
They also asked the government to resume suspended nuclear activities, including uranium enrichment.
Tehran already has restarted that program on a small-scale.
Iran claims its nuclear program is peaceful and only aimed at generating electricity, but an increasing
number of countries have come to share the U.S. view that Tehran is seeking to develop atomic weapons.
The U.S. and its European allies want Iran to give up uranium enrichment.
Iran has rejected the demand, saying it will never give up its right under the Nuclear Nonproliferation
Treaty to enrich uranium and produce nuclear fuel.

20 Dead in Iraq Bombings, Shootings

http://www.foxnews.com/story/0,2933,187425,00.html
March 10, 2006
BAGHDAD, Iraq A truck bomb ripped through a line of cars at a checkpoint in Fallujah as
bombings and shootings across Iraq Friday killed at least 20 people, including a U.S. Marine.
President Jalal Talabani ordered the new parliament to hold its first session later this month.
The U.S. military identified the five killed in the Fallujah attack as a U.S. Marine, three members of an
Iraqi family and an Iraqi soldier.
Car bombs also killed three people in Samarra, where an attack on a Shiite shrine last month ignited
nearly two weeks of sectarian violence that raised fears of civil war.
Authorities in Baghdad and south of the capital discovered the bodies of eight more men many of them
blindfolded, handcuffed and shot in the back of the head.
The unrelenting violence has complicated negotiations to form a broad-based government after Dec. 15
parliamentary elections.
Talabani's chief of staff told The Associated Press that the president had ordered parliament to meet later
this month.
"The president of the republic has called for parliament to hold its first session on March 19," Kamran alKaradaghi said.
Despite the decree, there still was no resolution of the bitter dispute over a new term for Shiite Prime
Minister Ibrahim al-Jaafari, prompting Massoud Barzani, the president of the Kurdish region of Iraq, to
issue a statement saying the country was in political "crisis."
Barzani invited the leaders of all the major blocs in parliament to meet with him in the northern city of Irbil
as soon as possible to seek a resolution.
The president has challenged al-Jaafari's candidacy on grounds he is too divisive and would be unable to
form a government representing all Iraq's religious and ethnic factions. There was also great unease over
al-Jaafari's close ties to radical anti-American cleric Muqtada al-Sadr.
U.S. Ambassador Zalmay Khalilzad also hoped to coax the country's major politicians to join him at a
conference, Time magazine reported on its Web site. Elizabeth Colton, U.S. Embassy spokeswoman in
Baghdad, said Friday that no meeting had been set.
The United States wants to leave behind a strong central authority and has made that a precondition for
its hopes to begin drawing down American forces this summer.
The opening of parliament is the first step in the process of forming Iraq's first permanent, post-invasion
government. When parliament convenes, it has 60 days to accomplish the task.

The bomb exploded in Fallujah as large numbers of cars were waiting to pass through the security
checkpoint going into the city, 40 miles west of Baghdad, police said. Five people also were wounded,
including two policemen, police Lt. Mohammed Taha said.
"Today, Iraqi security forces were working alongside U.S. Marines to ensure the safety of the citizens of
Fallujah," Marine spokesman Lt. Col. Bryan F. Salas said in a statement. "Our thoughts are with the
families and friends of the individuals who lost their lives."
It was the first Friday that Baghdad was not under an extended curfew or vehicle restrictions since the
shrine bombing in Samarra, and large numbers attended Mosque for the most important prayer service of
the week without major incident.
In Samarra, where a Feb. 22 bombing of a Shiite shrine ignited reprisal attacks against Sunnis and other
violence that killed about 500 people, one car bomb targeted police but killed a civilian. The other bomb,
near the Sunni Qiba mosque, killed the imam and another person in the mostly Sunni city, 60 miles north
of Baghdad. Five people were wounded in the attacks.
Elsewhere, a roadside bomb exploded as a police patrol was driving through west Baghdad, killing two
officers and wounding four, police said.
Another bomb hit a U.S. tank in east Baghdad, setting it afire and blowing off the treads, police said. The
American military said the M1A2 Abrams tank hit a roadside bomb and the crew escaped unharmed.
Six of the bodies between the ages of 30 and 45 were found in two suburbs east of Baghdad and
non bore identification, police said.
The bodies of two more bullet-riddled men one of whom also had his throat slit were brought to the
morgue in Kut, 100 miles southeast of Baghdad, officials said.
South of the capital, a roadside bomb killed a 10-year-old boy and wounded his 8-year-old friend as they
played in Amarah, police said. Police defused to other bombs at the scene.
A policeman in Tikrit died disarming a roadside bomb when a second explosive device detonated, also
wounding two others.

CHAPTER 4
BAILOUTS FOR BANKS, BUT NOT AMERICANS
BANK BAILOUTS
http://www.propublica.org/special/show-me-the-tarp-money

Show Me the TARP Money

Heres our running count of the TARP (Troubled Asset Relief Program), the $700 billion bill
passed and signed in October. We'll update as more names come in. And if you've heard of new
recipients, drop us a line.
Number of financial institutions: 350
Total amount committed for investment as of Jan 30, 2009 11:15:01 AM: $301.60 billion
Total amount actually invested: $295.20 billion
In addition to these totals, the Treasury has set aside $32.5 billion more for other purposes.
A number of financial institutions have announced their applications for TARP money, but
havent yet received approval. Weve left them off this list until theyre approved.
Also, it takes some time for Treasury to actually execute these transactions after preliminary
approval time taken to finalize the agreements. Thats why not all of the money committed for
investment has actually been invested yet. Institutions that have received the money are marked
in green. All of the institutions below have received preliminary approval from Treasury.
In the Background column, profiles of the financial institutions (including total revenue,
lobbying reports, executive compensation, etc.) come from the hardworking folks at Taxpayers
for Common Sense. Where a profile isnt yet available, weve linked to the press release.
http://www.propublica.org/tag/Bailout

http://money.cnn.com/news/specials/storysupplement/bankbailout/
Bank bailout: Who's getting the money
The Treasury Department is in the midst of doling out $250 billion to financial
institutions nationwide as part of the $700 billion bailout plan. Here's a list of the
banks that have received checks so far.

Date of
Capital
Injection

Financial Institution

City

State

Amount

10/28/2008

Wells Fargo & Co.

San Francisco

Calif.

$25,000,000,000

10/28/2008

JPMorgan Chase & Co.

New York

N.Y.

$25,000,000,000

10/28/2008

Citigroup Inc.

New York

N.Y.

$25,000,000,000

10/28/2008

Bank of America Corp.

Charlotte

N.C.

$15,000,000,000

10/28/2008

Morgan Stanley

New York

N.Y.

$10,000,000,000

10/28/2008

Goldman Sachs Group Inc. New York

N.Y.

$10,000,000,000

11/17/2008

U.S. Bancorp

Minn.

$6,599,000,000

11/17/2008

Capital One Financial Corp. McLean

Va.

$3,555,199,000

11/17/2008

Regions Financial Corp.

Birmingham

Ala.

$3,500,000,000

11/17/2008

SunTrust Banks Inc.

Atlanta

Ga.

$3,500,000,000

11/17/2008

BB&T Corp.

Winston-Salem N.C.

$3,133,640,000

10/28/2008

Bank of New York Mellon

Corp.

New York

N.Y.

$3,000,000,000

11/17/2008

KeyCorp

Cleveland

Ohio

$2,500,000,000

11/17/2008

Comerica Inc.

Dallas

Texas

$2,250,000,000

10/28/2008

State Street Corp.

Boston

Mass.

$2,000,000,000

11/17/2008

Marshall & Ilsley Corp.

Milwaukee

Wis.

$1,715,000,000

11/17/2008

Northern Trust Corp.

Chicago

Ill.

$1,576,000,000

11/17/2008

Zions Bancorporation

Salt Lake City

Utah

$1,400,000,000

Minneapolis

Date of
Capital
Injection

Financial Institution

City

State

Amount

11/17/2008

Huntington Bancshares

Columbus

Ohio

$1,398,071,000

11/17/2008

First Horizon National Corp.Memphis

Tenn.

$866,540,000

11/17/2008

TCF Financial Corp.

Wayzata

Minn.

$361,172,000

11/17/2008

Valley National Bancorp

Wayne

N.J.

$300,000,000

11/17/2008

UCBH Holdings Inc.

San Francisco

Calif.

$298,737,000

11/17/2008

Umpqua Holdings Corp.

Portland

Ore.

$214,181,000

11/17/2008

Washington Federal Inc.

Seattle

Wash.

$200,000,000

11/17/2008

Provident Bancshares
Corp.

Baltimore

Md.

$151,500,000

11/17/2008

Bank of Commerce
Holdings

Redding

Calif.

$17,000,000

11/17/2008

1st FS Corp.

Hendersonville N.C.

$16,369,000

11/17/2008

Broadway Financial Corp.

Los Angeles

Calif.

$9,000,000

11/21/2008

First Niagara Financial

Group

Lockport

N.Y.

$184,011,000

11/21/2008

HF Financial Corp.

Sioux Falls

S.D.

$25,000,000

11/21/2008

Centerstate Banks of
Florida Inc.

Davenport

Fla.

$27,875,000

11/21/2008

City National Corporation

Beverly Hills

Calif.

$400,000,000

11/21/2008

First Community
Bankshares Inc.

Bluefield

Va.

$41,500,000

11/21/2008

Western Alliance
Bancorporation

Las Vegas

Nev.

$140,000,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

11/21/2008

Webster Financial
Corporation

Waterbury

Conn.

$400,000,000

11/21/2008

Pacific Capital Bancorp

Santa Barbara

Calif.

$180,634,000

11/21/2008

Heritage Commerce Corp. San Jose

Calif.

$40,000,000

11/21/2008

Ameris Bancorp

Moultrie

Ga.

$52,000,000

11/21/2008

Porter Bancorp Inc.

Louisville

Ky.

$35,000,000

11/21/2008

Banner Corporation

Walla Walla

Wash.

$124,000,000

11/21/2008

Cascade Financial
Corporation

Everett

Wash.

$38,970,000

11/21/2008

Columbia Banking System,

Tacoma
Inc.

Wash.

$76,898,000

11/21/2008

Heritage Financial
Corporation

Wash.

$24,000,000

11/21/2008

First PacTrust Bancorp, Inc. Chula Vista

Calif.

$19,300,000

11/21/2008

Severn Bancorp, Inc.

Annapolis

Md.

$23,393,000

11/21/2008

Boston Private Financial

Holdings, Inc.

Boston

Mass.

$154,000,000

11/21/2008

Associated Banc-Corp

Green Bay

Wis.

$525,000,000

11/21/2008

Trustmark Corporation

Jackson

Miss.

$215,000,000

11/21/2008

First Community
Corporation

Lexington

S.C.

$11,350,000

11/21/2008

Taylor Capital Group

Rosemont

Ill.

$104,823,000

11/21/2008

Nara Bancorp, Inc.

Los Angeles

Calif.

$67,000,000

Olympia

Date of
Capital
Injection

Financial Institution

City

State

Amount

12/5/2008

MB Financial Inc.

Chicago

Ill.

$196,000,000

12/5/2008

First Midwest Bancorp, Inc. Itasca

Ill.

$193,000,000

12/5/2008

United Community Banks,

Blairsville
Inc.

Ga.

$180,000,000

12/5/2008

Wesbanco Bank Inc.

Wheeling

W.Va.

$75,000,000

12/5/2008

Encore Bancshares Inc.

Houston

Texas

$34,000,000

12/5/2008

Manhattan Bancorp

El Segundo

Calif.

$1,700,000

12/5/2008

Iberiabank Corporation

Lafayette

La.

$90,000,000

12/5/2008

Eagle Bancorp, Inc.

Bethesda

Md.

$38,235,000

12/5/2008

Sandy Spring Bancorp, Inc. Olney

Md.

$83,094,000

12/5/2008

Coastal Banking Company, Fernandina

Inc.
Beach

Fla.

$9,950,000

12/5/2008

East West Bancorp

Calif.

$306,546,000

12/5/2008

South Financial Group, Inc. Greenville

S.C.

$347,000,000

12/5/2008

Great Southern Bancorp

Springfield

Mo.

$58,000,000

12/5/2008

Cathay General Bancorp

Los Angeles

Calif.

$258,000,000

12/5/2008

Southern Community
Financial Corp.

Winston-Salem N.C.

$42,750,000

12/5/2008

CVB Financial Corp

Ontario

Calif.

$130,000,000

12/5/2008

First Defiance Financial

Corp.

Defiance

Ohio

$37,000,000

12/5/2008

First Financial Holdings Inc. Charleston

S.C.

$65,000,000

Pasadena

Date of
Capital
Injection

Financial Institution

City

State

Amount

12/5/2008

Superior Bancorp Inc.

Birmingham

AL

$69,000,000

12/5/2008

Southwest Bancorp, Inc.

Stillwater

Okla.

$70,000,000

12/5/2008

Popular, Inc.

San Juan

P.R.

$935,000,000

12/5/2008

Blue Valley Ban Corp

Overland Park

Kan.

$21,750,000

12/5/2008

Central Federal
Corporation

Fairlawn

Ohio

$7,225,000

12/5/2008

Bank of Marin Bancorp

Novato

Calif.

$28,000,000

12/5/2008

Bank of North Carolina

Thomasville

N.C.

$31,260,000

12/5/2008

Central Bancorp, Inc.

Somerville

Mass.

$10,000,000

12/5/2008

Southern Missouri
Bancorp, Inc.

Poplar Bluff

Mo.

$9,550,000

12/5/2008

State Bancorp, Inc.

Jericho

N.Y.

$36,842,000

12/5/2008

TIB Financial Corp

Naples

Fla.

$37,000,000

12/5/2008

Unity Bancorp, Inc.

Clinton

N.J.

$20,649,000

12/5/2008

Old Line Bancshares, Inc.

Bowie

Md.

$7,000,000

12/5/2008

FPB Bancorp, Inc.

Port St. Lucie

Fla.

$5,800,000

12/5/2008

Sterling Financial
Corporation

Spokane

Wash.

$303,000,000

12/5/2008

Oak Valley Bancorp

Oakdale

Calif.

$13,500,000

12/5/2008

Old National Bancorp

Evansville

IN

$100,000,000

12/12/2008

Capital Bank Corp.

Raliegh

NC

$41,279,000

12/12/2008

Pacific International

Seattle

WA

$6,500,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

Bancorp
12/12/2008

SVB Financial Group

Santa Clara

CA

$235,000,000

12/12/2008

LNB Bancorp Inc.

Lorain

OH

$25,223,000

12/12/2008

Wilmington Trust Corp.

Wilmington

DE

$330,000,000

12/12/2008

Susquehanna Bancshares
Lititz
Inc.

PA

$300,000,000

12/12/2008

Signature Bank

New York

NY

$120,000,000

12/12/2008

HopFed Bancorp

Hopkinsville

KY

$18,400,000

12/12/2008

Citizens Republic Bancorp

Flint
Inc.

MI

$300,000,000

12/12/2008

Indiana Community
Bancorp

Columbus

IN

$21,500,000

12/12/2008

Bank Of the Ozarks Inc.

Little Rock

AR

$75,000,000

12/12/2008

Center Financial Corp.

Los Angeles

CA

$55,000,000

12/12/2008

NewBridge Bancorp

Greensboro

NC

$52,372,000

12/12/2008

Sterling Bancshares Inc.

Houston

TX

$125,198,000

12/12/2008

The Bancorp Inc.

Wilmington

DE

$45,220,000

12/12/2008

TowneBank

Portsmouth

VA

$76,458,000

12/12/2008

Wilshire Bancorp Inc.

Los Angeles

CA

$62,158,000

12/12/2008

Valley Financial Corp.

Roanoke

VA

$16,019,000

12/12/2008

Independent Bank Corp.

Ionia

MI

$72,000,000

12/12/2008

Pinnacle Financial Partners Nashville

TN

$95,000,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

Litchfield

CT

$10,000,000

Inc.
12/12/2008

First Litchfield Financial

Corp.

12/12/2008

National Penn Bancshares

Boyertown
Inc.

PA

$150,000,000

12/12/2008

Northeast Bancorp

Lewiston

ME

$4,227,000

12/12/2008

Citizens South Banking

Corp.

Gastonia

NC

$20,500,000

12/12/2008

Virginia Commerce
Bancorp

Arlington

VA

$71,000,000

12/12/2008

Fidelity Bancorp Inc.

Pittsburgh

PA

$7,000,000

12/12/2008

LSB Corp.

Andover

MA

$15,000,000

12/19/2008

Intermountain Community
Sandpoint
Bancorp

ID

$27,000,000

12/19/2008

Community West
Bancshares

Goleta

CA

$15,600,000

12/19/2008

Synovus Financial Corp.

Columbus

GA

$967,870,000

12/19/2008

Tennessee Commerce
Bancorp, Inc.

Franklin

TN

$30,000,000

12/19/2008

Community Bankers Trust

Glen Allen
Corporation

VA

$17,680,000

12/19/2008

BancTrust Financial Group,

Mobile
Inc.

AL

$50,000,000

12/19/2008

Enterprise Financial
Services Corp.

MO

$35,000,000

St. Louis

Date of
Capital
Injection

Financial Institution

City

State

Amount

12/19/2008

Mid Penn Bancorp, Inc.

Millersburg

PA

$10,000,000

12/19/2008

Summit State Bank

Santa Rosa

CA

$8,500,000

12/19/2008

VIST Financial Corp.

Wyomissing

PA

$25,000,000

12/19/2008

Wainwright Bank & Trust

Company

Boston

MA

$22,000,000

12/19/2008

Whitney Holding
Corporation

New Orleans

LA

$300,000,000

12/19/2008

The Connecticut Bank and

Hartford
Trust Company

CT

$5,448,000

12/19/2008

CoBiz Financial Inc.

Denver

CO

$64,450,000

12/19/2008

Santa Lucia Bancorp

Atascadero

CA

$4,000,000

12/19/2008

Seacoast Banking
Corporation of Florida

Stuart

FL

$50,000,000

12/19/2008

Horizon Bancorp

Michigan City

IN

$25,000,000

12/19/2008

Fidelity Southern
Corporation

Atlanta

GA

$48,200,000

12/19/2008

Community Financial
Corporation

Staunton

VA

$12,643,000

12/19/2008

Berkshire Hills Bancorp,

Inc.

Pittsfield

MA

$40,000,000

12/19/2008

First California Financial

Group, Inc

Westlake Village CA

$25,000,000

12/19/2008

AmeriServ Financial, Inc

Johnstown

PA

$21,000,000

12/19/2008

Security Federal

Aiken

SC

$18,000,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

Corporation
12/19/2008

Wintrust Financial
Corporation

Lake Forest

IL

$250,000,000

12/19/2008

Flushing Financial
Corporation

Lake Success

NY

$70,000,000

12/19/2008

Monarch Financial
Holdings, Inc.

Chesapeake

VA

$14,700,000

12/19/2008

StellarOne Corporation

Charlottesville

VA

$30,000,000

12/19/2008

Union Bankshares
Corporation

Bowling Green

VA

$59,000,000

12/19/2008

Tidelands Bancshares, Inc Mt. Pleasant

SC

$14,448,000

12/19/2008

Bancorp Rhode Island, Inc. Providence

RI

$30,000,000

12/19/2008

Hawthorn Bancshares, Inc. Lee's Summit

MO

$30,255,000

12/19/2008

The Elmira Savings Bank,

FSB

Elmira

NY

$9,090,000

12/19/2008

Alliance Financial
Corporation

Syracuse

NY

$26,918,000

12/19/2008

Heartland Financial USA,

Inc.

Dubuque

IA

$81,698,000

12/19/2008

Citizens First Corporation

Bowling Green

KY

$8,779,000

12/19/2008

FFW Corporation

Wabash

IN

$7,289,000

12/19/2008

Plains Capital Corporation Dallas

TX

$87,631,000

12/19/2008

Tri-County Financial
Corporation

MD

$15,540,000

Waldorf

Date of
Capital
Injection

Financial Institution

City

State

Amount

12/19/2008

OneUnited Bank

Boston

MA

$12,063,000

12/19/2008

Patriot Bancshares, Inc.

Houston

TX

$26,038,000

12/19/2008

Pacific City Finacial

Corporation

Los Angeles

CA

$16,200,000

12/19/2008

Marquette National
Corporation

Chicago

IL

$35,500,000

12/19/2008

Exchange Bank

Santa Rosa

CA

$43,000,000

12/19/2008

Monadnock Bancorp, Inc.

Peterborough

NH

$1,834,000

12/19/2008

Bridgeview Bancorp, Inc.

Bridgeview

IL

$38,000,000

12/19/2008

Fidelity Financial
Corporation

Wichita

KS

$36,282,000

12/19/2008

Patapsco Bancorp, Inc.

Dundalk

MD

$6,000,000

12/19/2008

NCAL Bancorp

Los Angeles

CA

$10,000,000

12/19/2008

FCB Bancorp, Inc.

Louisville

KY

$9,294,000

12/31/2008

SunTrust Banks, Inc.

Atlanta

GA

$1,350,000,000

12/31/2008

The PNC Financial Services

Pittsburgh
Group Inc.

PA

$7,579,200,000

12/31/2008

Fifth Third Bancorp

Cincinnati

OH

$3,408,000,000

12/31/2008

Hampton Roads
Bankshares, Inc.

Norfolk

VA

$80,347,000

12/31/2008

CIT Group Inc.

New York

NY

$2,330,000,000

12/31/2008

West Bancorporation, Inc.

West Des
Moines

IA

$36,000,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

12/31/2008

First Banks, Inc.

Clayton

MO

$295,400,000

1/9/2009

Bank of America Corp.1

Charlotte

N.C.

$10,000,000,000

1/9/2009

FirstMerit Corporation

Akron

OH

$125,000,000

1/9/2009

Farmers Capital Bank

Corporation

Frankfort

KY

$30,000,000

1/9/2009

Peapack-Gladstone
Financial Corporation

Gladstone

NJ

$28,685,000

1/9/2009

Commerce National Bank

Newport Beach CA

$5,000,000

1/9/2009

The First Bancorp, Inc.

Damariscotta

ME

$25,000,000

1/9/2009

Sun Bancorp, Inc.

Vineland

NJ

$89,310,000

1/9/2009

Crescent Financial
Corporation

Cary

NC

$24,900,000

1/9/2009

American Express
Company

New York

NY

$3,388,890,000

1/9/2009

Central Pacific Financial

Corp.

Honolulu

HI

$135,000,000

1/9/2009

Centrue Financial
Corporation

St. Louis

MO

$32,668,000

1/9/2009

Eastern Virginia
Bankshares, Inc.

Tappahannock

VA

$24,000,000

1/9/2009

Colony Bankcorp, Inc.

Fitzgerald

GA

$28,000,000

1/9/2009

Independent Bank Corp.

Rockland

MA

$78,158,000

1/9/2009

Cadence Financial
Corporation

Starkville

MS

$44,000,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

1/9/2009

LCNB Corp.

Lebanon

OH

$13,400,000

1/9/2009

Center Bancorp, Inc.

Union

NJ

$10,000,000

1/9/2009

F.N.B. Corporation

Hermitage

PA

$100,000,000

1/9/2009

C&F Financial Corporation West Point

VA

$20,000,000

1/9/2009

North Central Bancshares,

Fort Dodge
Inc.

IA

$10,200,000

1/9/2009

Carolina Bank Holdings,

Inc.

Greensboro

NC

$16,000,000

1/9/2009

First Bancorp

Troy

NC

$65,000,000

1/9/2009

First Financial Service

Corporation

Elizabethtown

KY

$20,000,000

1/9/2009

Codorus Valley Bancorp,

Inc.

York

PA

$16,500,000

1/9/2009

MidSouth Bancorp, Inc.

Lafayette

LA

$20,000,000

1/9/2009

First Security Group, Inc.

Chattanooga

TN

$33,000,000

1/9/2009

Shore Bancshares, Inc.

Easton

MD

$25,000,000

1/9/2009

The Queensborough
Company

Louisville

GA

$12,000,000

1/9/2009

American State
Bancshares, Inc.

Great Bend

KS

$6,000,000

1/9/2009

Security California Bancorp Riverside

CA

$6,815,000

1/9/2009

Security Business Bancorp San Diego

CA

$5,803,000

1/9/2009

Sound Banking Company

NC

$3,070,000

Morehead City

Date of
Capital
Injection

Financial Institution

City

1/9/2009

Mission Community
Bancorp

San Luis Obispo CA

$5,116,000

1/9/2009

Redwood Financial Inc.

Redwood Falls

MN

$2,995,000

1/9/2009

Surrey Bancorp

Mount Airy

NC

$2,000,000

1/9/2009

Independence Bank

East Greenwich RI

$1,065,000

1/9/2009

Valley Community Bank

Pleasanton

CA

$5,500,000

1/9/2009

Rising Sun Bancorp

Rising Sun

MD

$5,983,000

1/9/2009

Community Trust Financial

Ruston
Corporation

LA

$24,000,000

1/9/2009

GrandSouth
Bancorporation

Greenville

SC

$9,000,000

1/9/2009

Texas National
Bancorporation

Jacksonville

TX

$3,981,000

1/9/2009

Congaree Bancshares, Inc. Cayce

SC

$3,285,000

1/9/2009

New York Private Bank &

Trust Corporation

New York

NY

$267,274,000

1/16/2009

Home Bancshares, Inc.

Conway

Ark

$50,000,000

1/16/2009

Washington Banking
Company / Whidbey Island Oak Harbor
Bank

Wash.

$26,380,000

1/16/2009

New Hampshire Thrift

Bancshares, Inc.

N.H.

$10,000,000

1/16/2009

Bar Harbor Bankshares/Bar

Harbor
Harbor Bank & Trust Bar

Maine

$18,751,000

1/16/2009

Somerset Hills Bancorp

N.J.

$7,414,000

Newport

Bernardsville

State

Amount

Date of
Capital
Injection

Financial Institution

City

State

Amount

1/16/2009

SCBT Financial
Corporation

Columbia

S.C.

$64,779,000

1/16/2009

S&T Bancorp

Indiana

Pa.

$108,676,000

1/16/2009

ECB Bancorp, Inc./East

Carolina Bank

Engelhard

N.C.

$17,949,000

1/16/2009

First BanCorp

San Juan

Puerto
$400,000,000
Rico

1/16/2009

Texas Capital Bancshares,

Dallas
Inc.

Texas

$75,000,000

1/16/2009

Yadkin Valley Financial

Corporation

Elkin

N.C.

$36,000,000

1/16/2009

Carver Bancorp, Inc

New York

N.Y.

$18,980,000

1/16/2009

Citizens & Northern

Corporation

Wellsboro

Pa.

$26,440,000

1/16/2009

MainSource Financial
Group, Inc.

Greensburg

Ind.

$57,000,000

1/16/2009

MetroCorp Bancshares,
Inc.

Houston

Texas

$45,000,000

1/16/2009

United Bancorp, Inc.

Tecumseh

Mich.

$20,600,000

1/16/2009

Old Second Bancorp, Inc.

Aurora

Ill.

$73,000,000

1/16/2009

Pulaski Financial Corp

Creve

Coeur

Mo.

$32,538,000

1/16/2009

OceanFirst Financial Corp. Toms River

N.J.

$38,263,000

1/16/2009

Community 1st Bank

Calif.

$2,550,000

Roseville

Date of
Capital
Injection

Financial Institution

City

1/16/2009

TCB Holding Company,

Texas Community Bank

The Woodlands Texas

1/16/2009

Centra Financial Holdings,

Morgantown
Inc./Centra Bank, Inc.

W.Va.

$15,000,000

1/16/2009

First Bankers Trustshares,

Quincy
Inc.

Ill.

$10,000,000

1/16/2009

Pacific Coast National

Bancorp

San Clemente

Calif.

$4,120,000

1/16/2009

Community Bank of the

Bay

Oakland

Calif.

$1,747,000

1/16/2009

Redwood Capital Bancorp Eureka

Calif.

$3,800,000

1/16/2009

Syringa Bancorp

Boise

Idaho

$8,000,000

1/16/2009

Idaho Bancorp

Boise

Idaho

$6,900,000

1/16/2009

Puget Sound Bank

Bellevue

Wash.

$4,500,000

1/16/2009

United Financial Banking

Companies, Inc.

Vienna

Va.

$5,658,000

1/16/2009

Dickinson Financial
Corporation II

Kansas City

Mont.

$146,053,000

1/16/2009

The Baraboo
Bancorporation

Baraboo

Wisc.

$20,749,000

1/16/2009

Bank of Commerce

Charlotte

N.C.

$3,000,000

1/16/2009

State Bankshares, Inc.

Fargo

N.D.

$50,000,000

1/16/2009

BNCCORP, Inc.

Bismarck

N.D.

$20,093,000

State

Amount

$11,730,000

Date of
Capital
Injection

Financial Institution

City

State

Amount

1/16/2009

First Manitowoc Bancorp,

Inc.

Manitowoc

Wisc.

$12,000,000

1/16/2009

Southern Bancorp, Inc.

Arkadelphia

Ark.

$11,000,000

1/16/2009

Morrill Bancshares, Inc.

Merriam

Kan.

$13,000,000

1/16/2009

Treaty Oak Bancorp, Inc.

Austin

Texas

$3,268,000

1/22009

1st Source Corporation

South Bend

Ind.

$111,000,000

1/22009

Princeton National
Bancorp, Inc.

Princeton

Ill.

$25,083,000

1/22009

AB&T Financial
Corporation

Gastonia

N.C.

$3,500,000

1/22009

First Citizens Banc Corp

Sandusky

Ohio

$23,184,000

1/22009

WSFS Financial
Corporation

Wilmington

Del.

$52,625,000

1/22009

Commonwealth Business
Bank

Los Angeles

Calif.

$7,701,000

1/22009

Seaside National Bank &

Trust

Orlando

Fla.

$5,677,000

1/22009

CalWest Bancorp

Rancho Santa
Margarita

Calif.

$4,656,000

1/22009

Fresno First Bank

Fresno

Calif.

$1,968,000

1/22009

First ULB Corp.

Oakland

Calif.

$4,900,000

1/22009

Alarion Financial Services,

Ocala
Inc.

Fla.

$6,514,000

1/22009

Midland States Bancorp,

Ill.

$10,189,000

Effingham

Date of
Capital
Injection

Financial Institution

City

State

Amount

Inc.
1/22009

Moscow Bancshares, Inc.

Moscow

Tenn.

$6,216,000

1/22009

Farmers Bank

Windsor

Va.

$8,752,000

1/22009

California Oaks State Bank Thousand Oaks Calif.

$3,300,000

1/22009

Pierce County Bancorp

Tacoma

Wash.

$6,800,000

1/22009

Calvert Financial
Corporation

Ashland

Mo.

$1,037,000

1/22009

Liberty Bancshares, Inc.

Jonesboro

Ark.

$57,500,000

1/22009

Crosstown Holding
Company

Blaine

Minn.

$10,650,000

1/22009

BankFirst Capital
Corporation

Macon

Miss.

$15,500,000

1/22009

Southern Illinois Bancorp,

Carmi
Inc.

Ill.

$5,000,000

1/22009

FPB Financial Corp.

Hammond

La.

$3,240,000

1/22009

Stonebridge Financial
Corp.

West Chester

Penn.

$10,973,000

Total:

$45,000
$45,000
$40,000
$25,000
$25,000
$14,284

$194,177,001,
000

Citigroup
Bank of America (incl. Merrill Lynch)
AIG
JPMorgan Chase
Wells Fargo
General Motors

$10,000
$10,000
$7,579.2
$6,599
$5,500
$5,000
$4,900
$3,555.2
$3,500
$3,408
$3,388.9
$3,133.6
$3,000
$2,500
$2,330
$2,250
$2,000
$1,715
$1,576
$1,400
$1,398.1
$1,200
$967.9
$935
$866
$600
$550
$525
$400
$400
$400
$376.5
$361.2
$347
$330
$330
$306.5
$303
$300
$300
$300
$298.7
$295.4
$267.3
$266
$258

Goldman Sachs
Morgan Stanley
PNC Financial Services
U.S. Bancorp
Chrysler
GMAC
SunTrust
Capital One Financial Corp.
Regions Financial Corp.
Fifth Third Bancorp
American Express
BB&T
Bank of New York Mellon
KeyCorp
CIT Group
Comerica Incorporated
State Street
Marshall & Ilsley
Northern Trust
Zions Bancorp
Huntington Bancshares
Discover Financial Services
Synovus Financial Corp.
Popular, Inc.
First Horizon National
M&T Bank Corporation
Colonial BancGroup, Inc.
Associated Banc-Corp
City National
First BanCorp
Webster Financial
Fulton Financial Corp
TCF Financial
South Financial Group
Wilmington Trust Corporation
Valley National
East West Bancorp, Inc.
Sterling Financial Corp
Whitney Holding Corp
Citizens Republic Bancorp
Susquehanna Bancshares
UCBH Holdings
First Banks, Inc.
New York Private Bank & Trust Corp
Flagstar Bancorp
Cathay General Bancorp

$250
$235
$216
$215
$214.2
$200
$196
$193
$184
$180.6
$180
$154
$151
$150
$146.1
$140
$135
$130
$125
$125
$124
$120
$111
$110
$108.7
$104.8
$100
$100
$100
$95
$90
$89.3
$87.6
$84.8
$83
$81.7
$80.3
$80
$78.2
$76.9
$76.5
$75
$75
$75
$73
$72.3

Wintrust Financial Corp

SVB Financial Group
International Bancshares Corporation
Trustmark Corp
Umpqua
Washington Federal Inc.
MB Financial
First Midwest Bancorp
First Niagara
Pacific Capital Bancorp
United Community Banks
Boston Private Financial Holdings
Provident Bankshares Corp.
National Penn Bancshares
Dickinson Financial Corp II
Western Alliance Bancorporation
Central Pacific Financial Corp
CVB Finanical
Sterling Bancshares
FirstMerit Corp
Banner Corp
Signature Bank
1st Source Corp
Anchor BanCorp Wisconsin
S&T Bancorp
Taylor Capital
Old National Bancorp
F.N.B. Corporation
Park National Corporation
Pinnacle Financial
IBERIABANK Corp
Sun Bancorp
Plains Capital Corp
Midwest Banc Holdings
Sandy Spring Bancorp
Heartland Financial USA
Hampton Roads Bankshares
First Financial Bancorp
Independent Bank Corp
Columbia Banking System
TowneBank
Bank of the Ozarks
Texas Capital Bancshares
WesBanco
Old Second Bancorp
Green Bankshares

$72
$71
$70
$70
$69
$67
$65
$65
$64.8
$64.4
$62.2
$59
$59
$58
$57.5
$57
$55
$52.6
$52.4
$52
$50
$50
$50
$50
$48.2
$45.2
$45
$44
$43
$42.8
$42
$41.5
$41.3
$40
$40
$40
$40
$39
$39
$38.3
$38.2
$38
$37.5
$37
$37
$36.8

Independent Bank Corporation

Virginia Commerce Bancorp
Southwest Bancorp
Flushing Financial Corp
Superior Bancorp
Nara Bancorp
First Financial Holdings
First Bancorp
SCBT Financial Corp
CoBiz Financial
Wilshire Bancorp
Union Bankshares
Lakeland Bancorp
Great Southern Bancorp
Liberty Bancshares
MainSource Financial Group
Center Financial Corp
WSFS Financial
NewBridge Bancorp
Ameris Bancorp
Seacoast Banking Corp
Home BancShares, Inc.
State Bankshares
BancTrust Financial Group
Fidelity Southern Corp
The Bancorp
MetroCorp Bancshares
Cadence Financial Corp
Exchange Bank
Southern Community Financial
Sterling Bancorp
First Community Bancshares
Capital Bank
Heritage Commerce Corp
First M&F Corp
Berkshire Hills Bancorp
Simmons First National
Peoples Bancorp
Cascade Financial Corp
OceanFirst Financial Corp
Eagle Bancorp
Bridgeview Bancorp
Financial Institutions
TIB Financial Corp
First Defiance Financial Corp
State Bancorp

$36.3
$36
$36
$35.5
$35
$35
$34.9
$34
$33
$32.7
$32.5
$32.4
$31.8
$31.3
$30.3
$30
$30
$30
$30
$30
$30
$28.7
$28
$28
$27.9
$27
$26.9
$26.4
$26.4
$26
$26
$25.2
$25.1
$25.1
$25
$25
$25
$25
$25
$25
$25
$24.9
$24
$24
$24
$23.9

Fidelity Financial Corp

West Bancorporation
Yadkin Valley Financial Corp
Marquette National Corp
Porter Bancorp
Enterprise Financial Services Corp
MidWestOne Financial Group
Encore Bancshares
First Security Group
Centrue Financial
Pulaski Financial Corp
MutualFirst Financial
Parkvale Financial Corp
BNC Bancorp
Hawthorn Bancshares
Bancorp Rhode Island
Royal Bancshares of Pennsylvania
Farmers Capital Bank Corp
StellarOne Corp
Century Bancorp
Tennessee Commerce Bancorp
Peapack-Gladstone Financial
Colony Bankcorp
Bank of Marin Bancorp
CenterState Banks of Florida, Inc.
Intermountain Community Bancorp
Alliance Financial Corp
Citizens & Northern Corporation
Washington Banking Company
Patriot Bancshares
HMN Financial
LNB Bancorp
Princeton National Bancorp
Peoples Bancorp of North Carolina
Horizon Bancorp
Intervest Bancshares
First California Financial Group
Shore Bancshares
HF Financial Corp
VIST Financial Corp
The First Bancorp
Crescent Financial Corp
Eastern Virginia Bankshares
Community Trust Financial Corp
Heritage Financial
Bridge Capital Holdings

$23.4
$23.2
$22
$21.8
$21.5
$21
$21
$20.7
$20.6
$20.6
$20.5
$20.1
$20
$20
$20
$19.3
$19
$18.8
$18.4
$18
$17.9
$17.7
$17.5
$17
$16.6
$16.5
$16.3
$16.2
$16
$16
$16
$15.6
$15.5
$15.5
$15
$15
$15
$14.7
$14.4
$13.8
$13.5
$13.4
$13
$12.6
$12.1
$12

Severn Bancorp
First Citizens Banc Corp
Wainwright Bank & Trust
Blue Valley Ban Corp
Indiana Community Bancorp
AmeriServ Financial
Heritage Oaks Bancorp
The Baraboo Bancorporation
Unity Bancorp
United Bancorp
Citizens South Banking Corp
BNCCORP
First Financial Service Corp
C&F Financial Corp
MidSouth Bancorp
First PacTrust Bancorp, Inc.
Carver Bancorp
Bar Harbor Bankshares
HopFed Bancorp
Security Federal Corp
ECB Bancorp
Community Bankers Trust Corp
First Northern Community Bancorp
Bank of Commerce
Timberland Bancorp
Codorus Valley Bancorp
1st Financial Services
Pacific City Financial Corp
Valley Financial Corp
Carolina Bank Holdings
Access National Corp
Community West Bancshares
Tri-County Financial Corp
BankFirst Capital Corp
Centra Financial Holdings
LSB Corp
Nicolet Bankshares
Monarch Financial Holdings
Tidelands Bancshares
Magna Bank
Oak Valley Bancorp
LCNB Corp
Morrill Bancshares
Community Financial Corp
OneUnited Bank
Wilber Corp

$12
$12
$12
$11.7
$11.6
$11.6
$11.4
$11.3
$11
$11
$10.9
$10.8
$10.7
$10.7
$10.4
$10.3
$10.2
$10.2
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$9.5
$9.3
$9.2
$9.1
$9
$9
$9
$8.8
$8.8
$8.5
$8.2
$8
$7.7
$7.7
$7.5
$7.5
$7.4
$7.4

First Manitowoc Bancorp

The Queensborough Company
1st Constitution Bancorp
TCB Holding Company
Pacific Coast Bankers' Bancshares
Cecil Bancorp
First Community Corp
Central Jersey Bancorp
Southern Bancorp
Stonebridge Financial Corp
First Southern Bank
BCSB Bancorp
First Community Bank Corp of America
Crosstown Holding Company
Citizens Bancorp
United Bancorp of Alabama
North Central Bancshares
Midland States Bancorp
NCAL Bancorp
First Bankers Trustshares
New Hampshire Thrift Bancshares
Center Bancorp
Central Bancorp
First Litchfield Financial Corp
Uwharrie Capital Corp
Mid Penn Bancorp
Sussex Bancorp
Coastal Banking Company
Southern Missouri Bancorp
FCB Bancorp
Carollton Bancorp
Elmira Savings Bank
Broadway Financial Corporation
Grandsouth Bancorporation
Community Partners Bancorp
Citizens First Corp
Farmers Bank
Summit State Bank
Annapolis Bancorp
Syringa Bancorp
Commonwealth Business Bank
Oak Ridge Financial Services
The Little Bank
Emclaire Financial Corp
Somerset Hills Bancorp
First Sound Bank

$7.3
$7.3
$7.3
$7.2
$7
$7
$7
$6.9
$6.9
$6.8
$6.8
$6.5
$6.5
$6.2
$6
$6
$6
$6
$6
$5.8
$5.8
$5.8
$5.7
$5.7
$5.5
$5.5
$5.5
$5.1
$5
$5
$5
$4.9
$4.8
$4.7
$4.7
$4.5
$4.2
$4.1
$4.1
$4
$4
$4
$4
$3.8
$3.5
$3.5

Citizens Bancshares
Western Community Bancshares
FFW Corp
Central Federal Corp
Old Line Bancshares
CNB Financial Corp
Fidelity Bancorp
Idaho Bancorp
Western Illinois Bancshares
Security California Bancorp
Pierce County Bancorp
Alarion Financial Services
Pacific International Bancorp
Moscow Bancshares
ICB Financial
Patapsco Bancorp
Beach Business Bank
American State Bancshares
Rising Sun Bancorp
Leader Bancorp
Security Business Bancorp
FPB Bancorp
Seaside National Bank & Trust
United Financial Banking Companies
Valley Community Bank
Mission Valley Bancorp
Connecticut Bank and Trust Company
Mission Community Bancorp
The First Bancshares
Commerce National Bank
Southern Illinois Bancorp
First ULB Corp
Cache Valley Banking Company
Capital Bancorp
CalWest Bancorp
Puget Sound Bank
Northeast Bancorp
Pacific Coast National Bancorp
Pacific Commerce Bank
Santa Lucia Bancorp
Capital Pacific Bancorp
Hilltop Community Bancorp
Texas National Bancorporation
Redwood Capital Bancorp
AB&T Financial Corp
First Bankshares

$3.5
$3.3
$3.3
$3.3
$3.2
$3.1
$3
$3
$3
$3
$2.6
$2.6
$2
$2
$2
$1.8
$1.8
$1.7
$1.7
$1.5
$1.1
$1

TriStone Community Bank

California Oaks State Bank
Congaree Bancshares
Treaty Oak Bancorp
FPB Financial Corp
Sound Banking Company
Bank of Commerce
Tennessee Valley Financial Holdings
Citizens Community Bank
Redwood Financial
Community Investors Bancorp
Community 1st Bank
Surrey Bancorp
TCNB Financial Corp
Fresno First Bank
Monadnock Bancorp
Seacoast Commerce Bank
Community Bank of the Bay
Manhattan Bancorp
Saigon National
Independence Bank
Calvert Financial Corp

Nationalization of Banks?
Citi, Govt Agreement
Already Provides for Partial
Takeover
by Paul Kiel, ProPublica - January 22, 2009

The big question these days is whether the government will step in and take over the nation's
faltering major banks [1]. Details in the government's recent agreement with Citigroup to limit
the bank's losses show how the Bush administration was haltingly moving in the direction of a
takeover, but only after significant further losses at the bank.
Last November, government officials intervened [2] to halt Citigroup's free fall. The Treasury
Department ponied up $20 billion in exchange for preferred shares. That's on top of the $25
billion pumped into Citigroup as part of the original move to bail out banks. As part of the
November deal, regulators also agreed to backstop a $301 billion pool of assets by absorbing a

portion of the losses beyond a certain point. (The government recently struck a similar deal [3]
with Bank of America.)
Last week, Citigroup finally released the details of that agreement in an SEC filing [4]. It
provides for government officials to dictate management of the assets should losses exceed $27
billion.
Here's how the deal will work: $301 billion in assets are covered. Citi will absorb the first $39.5
billion in losses -- this is referred to as Citi's "deductible" in the agreement. If the losses continue
past the deductible, the government will absorb 90 percent of the losses. A trio of governmental
agencies would pay that share: The Treasury would first use $5 billion from the TARP [5], then
FDIC would put up $10 billion, and a Federal Reserve loan would provide the last resort. As a
fee, the Treasury and FDIC together are receiving a total of $7.06 billion of preferred stock in
Citi -- bringing the government's total holdings of Citi preferred stock to $52.06 billion.
But before losses mount to the level requiring Treasury to pay up, government officials would
gain the power to dictate how the assets are managed. Under the agreement, Citigroup will tap a
special CEO from within its ranks to manage the assets, who'll report to a special internal
oversight committee composed of Citigroup's senior management.
The agreement calls for increased oversight once losses hit $19 billion. At that point, the
government can demand "increased reporting, communication or audit requirements," appoint a
government official to sit on the oversight committee, and reduce the compensation of the Citi
officials managing the assets.
If losses reach $27 billion, the government can essentially seize management of the assets. The
government could tap another company to do the job and "change the fundamental business
objective of Citigroup" from "maximizing the long-term value" of the assets to "minimizing
losses." In such a scenario, the government will have effectively seized control of a large portion
of Citigroup's assets (about 15 percent) -- a kind of partial nationalization -- but only after the
bottom falls out.
Also revealed in the agreement was more detail concerning the mix of Citigroup assets the
government is guaranteeing. According to a chart [6] released by Citigroup, more than half of the
assets are residential mortgages, totaling $154.1 billion. Citigroup's financial statement [7] for
the fourth quarter shows Citi held $197.4 billion in mortgages total at the end of the year,
meaning that about 78 percent of Citi's residential real estate loan portfolio is covered by the
agreement.
Citigroup's chart does not detail the credit standards for the loans (whether any are subprime, for
instance), only showing that about two-thirds were first mortgages and the remainder second
mortgages. We've put in a call to Treasury. Meanwhile, a Citigroup spokesman refused to provide
more detail.
http://www.propublica.org/article/nationalization-of-banks-citi-govt-agreementalready-provides-for-partial-t

The Bailout: TARP Failing,

Next Step Unclear
by Paul Kiel, ProPublica - January 21, 2009

The TARP hasn't saved [1] the nation's major banks, and the Obama administration doesn't know
what to do [2] to save them.
That is the unusually sober takeaway in the morning's major papers, following yesterday's sharp
decline for banks in the stock markets. Bank stocks have been sliding all month: "The common
stock of the major banks tracked by the Dow Jones Wilshire U.S. Banks Index has fallen roughly
$287 billion in value since Jan. 2, a 43% decline in just over two weeks," reports the Wall Street
Journal [3].
Not surprisingly, "fear" and "nationalization [4]" are the words that crop up the most -- as in
investors' fear of being wiped out by a government takeover. As the Journal puts it, "The fact
that nationalization is considered by some to be possible and is roiling markets reflects the
failures of repeated government interventions to stem a widening crisis of confidence in the
banking system."
So far, the Treasury Department has spent roughly $230 billion pumping money into the nation's
banks [5] (billions more have gone to the auto companies and AIG). But as the Washington Post
puts it [1], that money "did not succeed in stabilizing the industry," and according to unnamed
Obama administration officials, it's "increasingly likely" that the remainder of the $700 billion in
bailout money won't do the trick either.
So what next? The New York Times [2], Post and Journal all juggle a variety of alternative
solutions: They range from the apparently leading contender of creating a "bad bank" to house
the banks' toxic assets to nationalization.
The underlying choice there is whether to protect shareholders or taxpayers. The "bad bank"
model would involve the government buying and holding the banks bad assets -- but there are
worries the government would overpay. In another case of unusual bluntness, the Times reports:
If policy makers were even remotely honest, [financial industry] analysts said, they would force
banks to take huge write-downs and insist on a high price in return for taking bailout money. For
practical purposes, that could mean nationalization or partial nationalization for many banks.
But as the chorus of calls for nationalization [4] grows, the Journal notes a reluctance among
U.S. officials to take "the most extreme step -- nationalizing banks altogether -- worried about

the government's ability to run them. The challenges of running Fannie Mae and Freddie Mac,
the two large mortgage-finance firms the government took over last fall, are seen as evidence of
that."
http://www.propublica.org/article/the-bailout-tarp-failing-next-step-unclear-090121

Obama Has No Quick Fix for Banks

http://www.nytimes.com/2009/01/21/business/economy/21bailout.html?_r=1
Published: January 20, 2009

WASHINGTON Even before they have settled into their new jobs,
President Obamas economic team faces an acute crisis in the nations
banking system that has no easy answers and that they are not yet prepared
to address.
The presidents advisers watched most banking shares fall sharply on
Tuesday, reinforcing what Obama officials have known for weeks: that their
most urgent financial problem is an immense new wave of losses at banks
and other lending institutions that threatens to further cripple their ability
to resume normal lending.
But when Timothy F. Geithner, the presidents nominee to be the Treasury
secretary, appears before the Senate Finance Committee on Wednesday for
his confirmation hearing, he is not expected to have a detailed plan ready.
While Mr. Obamas top advisers view the black hole in bank balance sheets
as one of their most pressing problems, they cautioned that they would not
be pressured into announcing a plan before they had carefully thought
through all the options. Instead, they are scrutinizing an array of solutions,
each of which has pitfalls and poses its own risks and dangers.
Obama officials are almost certain to intertwine help to the banks with Mr.
Obamas goal of providing up to $100 billion for reducing home
foreclosures. The two goals are not necessarily in conflict. Subsidizing loan
modifications so that people can keep their homes could relieve banks of
the steep losses associated with foreclosures and also prevent further
erosions in bank asset values by putting a floor under home prices.
Mortgages are still the underlying problem, and I really think we need to
address that problem head-on, said Christopher Mayer, vice dean at the
Columbia University School of Business. The foreclosure stuff is just trying
not to have even bigger losses in mortgages than we have so far.

Administration officials said they were determined not to repeat the

mistakes of former President George W. Bushs Treasury secretary, Henry
M. Paulson Jr., who sold Congress on an elaborate strategy for shoring up
banks and then shifted to an entirely different approach before he even got
started.
Industry analysts said the Obama administrations challenge would be to
help banks get rid of severely devalued mortgage assets on their balance
sheets from nonperforming subprime mortgages to pools of mortgages
and derivatives without wasting taxpayer money or rewarding banks for
bad practices.
If policy makers were even remotely honest, analysts said, they would force
banks to take huge write-downs and insist on a high price in return for
taking bailout money. For practical purposes, that could mean
nationalization or partial nationalization for many banks.
One main difference between the options under consideration is how
transparent the government would be about the ultimate costs to taxpayers
and whether banks would be required to reveal the true magnitude of their
likely losses.
The ultimate taxpayer cost could be very high. A new analysis from the
Congressional Budget Office suggests that the taxpayer costs are highest
when the governments asset purchases involve opaque transactions that
are difficult to understand.
When Mr. Paulson first pleaded with Congress to approve the $700 billion
bailout program, known officially as the Troubled Asset Relief Program, he
argued that the government might eventually recoup its entire investment
because it would be able to resell its holdings when financial markets
recovered.
But the Congressional Budget Office, analyzing the programs $247 billion
in bailout payments through December, estimated that taxpayers would
end up absorbing $64 billion or 26 percent of that bill.

The nonpartisan Congressional agency estimated that taxpayers had

already lost 53 percent of the governments $40 billion investment in
American International Group, the giant insurance company that had been
insuring tens of billions of dollars in junk mortgage-backed securities
against default. As part of the rescue, the government helped A.I.G. buy
back billions in mortgage securities that it had insured.
As the new Obama economic team pondered a new approach, one
alternative, though an unlikely one, would be to revive Mr. Paulsons
original idea of buying troubled assets through an auction process. The
potential virtue of auctions is that they could get closer to establishing a
true market value for the assets.
But the drawback is that many of the securities are so arcane and complex
that they are unlikely to generate the volume of bidding needed to establish
a real market price.
A second approach, which Mr. Paulson had already used in a second round
of bailouts for Citigroup and Bank of America, is to ring-fence the bad
assets by providing federal guarantees against losses, and separating the
assets from the rest of a banks balance sheet.
The virtue of that approach is that it costs relatively little money up front,
because the government is essentially providing insurance coverage.
The danger is that the potential cost to taxpayers of federal guarantees can
be even less transparent than other approaches. As a result, the final costs
to taxpayers could be huge. Indeed, the guarantees would put the
government in the same business that led to immense losses from
mortgage-backed securities: credit-default swaps.
In its recent report, the Congressional Budget Office estimated the $20
billion that the Treasury spent in November to guarantee $306 billion of
toxic assets by Citigroup will cost taxpayers $5 billion a 26 percent
subsidy.

William Seidman, a former chairman of the Federal Deposit Insurance

Corporation who was closely involved with the bailout of savings-and-loan
institutions in the 1990s, said the government should simply take control of
the banks it tries to rescue. When we did things like this, we took the
banks over, Mr. Seidman. This is a huge, undeserved gift to the present
shareholders.
One big difference between today and the 1990s is that the government
back then was seizing entire failed institutions. On paper, at least, the
banks in trouble today are still viable.
That leaves the third and increasingly talked-about approach have the
government buy up the toxic assets and put them into a governmentfinanced bad bank or an aggregator bank.
The immediate virtue of the bad bank is that the remaining good bank
would have a clean balance sheet, unburdened by the uncertainty of future
losses from bad loans and securities.
Richard Berner, chief economist at Morgan Stanley, described the bad
bank strategy as the least bad of available options. The main advantage,
Mr. Berner said, was that the government would have to decide how much
it was willing to pay for the toxic assets. In turn, that would make it easier
for the public to figure out whether the government was overpaying.
Banks may not want that kind of openness, because accurately valuing the
toxic assets could force many to book big losses, admit their insolvency and
shut down.
http://www.nytimes.com/2009/01/21/business/economy/21bailout.html?_r=1

Quick Picks: Obamas Elastic

Ethics and Stimulus Package
Pork
by Alexandra Andrews, ProPublica - January 29, 2009 11:33 am EST

Quick Picks focuses on a select few of the day's stories from "Breaking on the Web [1]."

Obama is already navigating some treacherous ethics territory. Having

welcomed lobbyists into his White House after pledging not to, he's now hired
a new legal adviser on economic affairs who comes straight from a firm
seeking up to $3.4 billion in bailout funds, reports McClatchy. A White House
spokesman told McClatchy: "It is unlikely he will have any need to address the
Hartford [his old firm] specifically in his work in the White House, and if he
does he will recuse." For more on lobbyists going the White House, see our
Morning Read.
Obama successfully pushed his stimulus bill through the House last night, but
it came out the other end laden down with a whole lotta pork, reports the
Wall Street Journal. Its price tag is now pushing $900 billion after additions
that would benefit special interests ranging from the South Florida yachtrepair industry to California winemakers. (Hey, Wall Streeters need
somewhere to spend those bonuses.)

Check out more of our roundup of the best investigative stories around the Web [1].
Was there a story we missed? Please keep sending us stories [2] from your local paper, favorite
blog or magazine, etc. via e-mail [2] or Delicious [3].
http://www.propublica.org/article/quick-picks-obamas-elastic-ethics-and-stimuluspackage-pork-090129

Obama: Lobbyists, I Cant

Quit You!
by Paul Kiel, ProPublica - January 29, 2009

In November 2007, Barack Obama proclaimed that lobbyists "won't find a job in my White
House." That eventually became a pledge [1] that they wouldn't "dominate" his administration.
And during his transition, Obama put that kinder, gentler pledge into action [2], allowing
lobbyists onboard as long as they worked on issues unrelated to their earlier jobs.
When he got to the White House, he issued an executive order [3] banning lobbyists from
working on issues they'd worked on in the past two years. So how's that going? As the National
Journal reported [1], Obama has "nominated two recent lobbyists to high-level administration
posts, and 14 of the 112 White House staffers that Obama had named had been registered as
lobbyists at some point since 2005." Three more former lobbyists are being considered for top
administration jobs.
The most noted of those lobbyists is William Lynn, formerly the VP of government operations at
Raytheon, nominated [4] to be deputy Defense secretary. And then there's Mark Patterson,
nominated to be Treasury Secretary Tim Geithner's chief of staff, who lobbied for Goldman
Sachs until last year [5]. Another on the list is William Corr, who ran and lobbied for the
Campaign for Tobacco-Free Kids, nominated to be deputy Health and Human Services secretary.
Lynn has already received a waiver [6] from the Obama administration, and Corr seems likely to
receive one with little controversy [7] (especially since few seem to object to an anti-smoking
advocate getting a top health job).
As Politico reports [8], there are actually a number more Obama administration nominees and
appointees who have lobbied, though not within the past two years. Obama's nominee to be
attorney general, Eric Holder, for instance, was registered to lobby until 2004 and did work [9]
for a (now-bankrupt) telecom company. Others lobbied until recently but narrowly miss being
constrained by the lobbying rules; Ron Kirk, the nominee for U.S. trade representative, lobbied
in Texas, but not on the federal level, and so the rules don't apply [10].
So what gives? Well, here's what lobbyists have to say about it (from the National Journal
piece):
"I applaud Obama for facing the reality that he was going to need people who know how
Washington works and some of them might just have been lobbyists," said David Wenhold,
president of the American League of Lobbyists and co-founder of Miller/Wenhold Capitol

Strategies. "It was great in theory for him to say, 'No lobbyists,' but it simply doesn't work in
practice."
In other words, D.C. is crawling with lobbyists, a number of whom have experience working in
government. You're going to have to hire some of them. Nanny nanny boo boo.
Whether Obama has pulled something of a bait and switch is subject to debate. Obama's
spokesman tells Politico [11] that a few waivers shouldn't obscure Obama's unprecedented effort
to "reduce the influence of lobbyists in Washington." If you're looking for a point of comparison
to evaluate that claim, none of these pieces count up the number of former lobbyists who held
positions [12] in the Bush administration.
http://www.propublica.org/article/obama-lobbyists-i-cant-quit-you-090129

Obama finds room for lobbyists

By KENNETH P. VOGEL & MIKE ALLEN | 1/28/09
http://www.politico.com/news/stories/0109/18128.html
President Obama promised during his campaign that lobbyists "won't find a job in my
White House."
So far, though, at least a dozen former lobbyists have found top jobs in his
administration, according to an analysis done by Republican sources and corroborated
by Politico.
Obama aides did not challenge the the list of lobbyists appointed to administration jobs,
but they stressed that former lobbyists comprise a fraction of the more than 8,000
employees who will be hired by the new administration. And they pointed out that before
Obama made his campaign-trail promise, he issued a more complete - and more
nuanced - policy on former lobbyists.
Formalized in a recent presidential executive order, it forbids executive branch
employees from working in an agency, or on a program, for which they have lobbied in
the last two years.
Yet in the past few days, a number of exceptions have been granted, with the
administration conceding at least two waivers and that a handful of other appointees will
recuse themselves from dealing with matters on which they lobbied within the two-year

window.
It would be more honest if they admitted they made a mistake and came up with a
narrower rule, said Melanie Sloan, executive director of the government watchdog
group Citizens for Responsibility and Ethics in Washington. Obviously, they cant live
with the rule, which is why they keep waving the magic wand and making exceptions.
Theyre saying one thing and doing another. Its why the public is skeptical about
politicians.
But another watchdog, Meredith McGehee of the Campaign Legal Center, praised
Obamas rules as a good starting place and urged patience in judging their efficacy.
Any good set of ethics rules has the opportunity for waivers, but if the waivers become
the rule, rather than the exception, then you have to look at whether the waivers are
being sought too frequently or whether theres a problem with the rule, McGehee said.
I dont think were at that point yet.
At the White House, spokesman Tommy Vietor insisted the president has been
consistent.
During the campaign, then-Sen. Obama put forth the toughest ethics and lobbying
reform policy in history, Vietor said, and now hes acting on it to reduce the influence of
lobbyists in Washington.
Here are former lobbyists Obama has tapped for top jobs:
Eric Holder, attorney general nominee, was registered to lobby until 2004 on behalf of
clients including Global Crossing, a bankrupt telecommunications firm.
Tom Vilsack, secretary of agriculture nominee, was registered to lobby as recently as last
year on behalf of the National Education Association.
William Lynn, deputy defense secretary nominee, was registered to lobby as recently as
last year for defense contractor Raytheon, where he was a top executive.
William Corr, deputy health and human services secretary nominee, was registered to

lobby until last year for the Campaign for Tobacco-Free Kids, a non-profit that pushes to
limit tobacco use.
David Hayes, deputy interior secretary nominee, was registered to lobby until 2006 for
clients, including the regional utility San Diego Gas & Electric.
Mark Patterson, chief of staff to Treasury Secretary Timothy Geithner, was registered to
lobby as recently as last year for financial giant Goldman Sachs.
Ron Klain, chief of staff to Vice President Joe Biden, was registered to lobby until 2005 for
clients, including the Coalition for Asbestos Resolution, U.S. Airways, Airborne Express
and drug-maker ImClone.
Mona Sutphen, deputy White House chief of staff, was registered to lobby for clients,
including Angliss International in 2003.
Melody Barnes, domestic policy council director, lobbied in 2003 and 2004 for liberal
advocacy groups, including the American Civil Liberties Union, the Leadership
Conference on Civil Rights, the American Constitution Society and the Center for
Reproductive Rights.
Cecilia Munoz, White House director of intergovernmental affairs, was a lobbyist as
recently as last year for the National Council of La Raza, a Hispanic advocacy group.
Patrick Gaspard, White House political affairs director, was a lobbyist for the Service
Employees International Union.
Michael Strautmanis, chief of staff to the presidents assistant for intergovernmental
relations, lobbied for the American Association of Justice from 2001 until 2005.

How Much of the Bailout Is

Going to Small Banks?
by Paul Kiel, ProPublica - January 29, 2009
http://www.propublica.org/article/how-much-of-the-bailout-is-going-to-small-banks

Its been a while [1] since weve updated you on the Treasury Departments progress in actually
doling out money to banks (and ailing auto companies and insurance companies). Our bailout
tally [2] remains up to the minute, however, and our list has been steadily growing. Were now
up to at least $302.23 billion thats been earmarked for 355 corporations. $295.2 billion of that
has already actually been lent or invested.
As you can see from our complete list of those companies [2], most of that money has gone to a
select few of the nations financial institutions. And all but a few of those hundreds of
participants are banks.
So just how much of the bailout has gone to small banks and how much has gone to the big
boys? (Be sure not to miss ProPublicas investigation of how one small Nevada bank went under
[3].)
Here are a couple breakdowns of the TARP spending so far to give you an idea:
The average (mean) investment or loan is $851 million. But since most of the investments are
comparatively small, the median investment or loan is $26 million.
As you can see from our interactive map [4], the institutions are scattered all across the country
by our count, at least one bank in every state except Arizona, New Mexico, Nebraska, Wyoming,
Montana, and Alaska is participating. Two banks based in Puerto Rico got a total of $1.335
billion.
$180 billion, roughly 60 percent of the total, has so far gone to the five biggest financial
institutions: Citigroup, Bank of America, AIG, Wells Fargo and JPMorgan Chase.
$280.2 billion, roughly 93 percent of the total, has so far gone to the top 28 institutions, all of
which got investments or loans of $1 billion and above.
By contrast, the 300 smallest investments, doled out to local or regional banks, total $10.87
billion, roughly 3.6 percent of the total.
Or, if you prefer a more symbolic measure of whether Wall Street or Main Street is the big
winner here, how about this: At least 24 of the banks are headquartered on a "Main Street"
somewhere in America, and theyve gotten a total of $3 billion (Comerica, which got $2.25

billion and is located on Main Street in Dallas, accounts for most of that). Only one of the big
banks is actually headquartered on Wall Street thats Bank of New York Mellon, which got $3
billion. So call it even!

This Week in Scandals: BofA

Secrecy, Goodbye Gitmo,
and More
by Alexandra Andrews, ProPublica - January 23, 2009

Every week, we take stock of how the week unfolded for the top stories we're tracking in Scandal
Watch (see the right sidebar). Here is how we do it [1]. And, as always, feel free to suggest new
scandals [2].
1. Market Crisis [3]
Last Friday, Bank of America admitted a secret deal with the U.S. government [4] that helped oil
its purchase of Merrill Lynch, prompting angry shareholders to ask why they were left in the
dark [5]. The news came on the heels of BofAs disclosure that Merrill had lost $15.3 billion [6]
in the fourth quarter. BofA claims it didnt know about the massive loss before shareholders
agreed to buy Merrill on Dec. 5, but one investor isnt so sure [7]. At any rate, BofA told the
government about the losses about a month before shareholders were clued in [8].
Some more indications that BofA might have gotten a raw deal: Merrill agreed last week to dole
out $550 million to settle claims [9] it misled investors about its subprime-mortgage-backed
assets. Merrill also fast-tracked its bonuses by a month to award billions to its employees [10]
just three days before the BofA deal closed. Amid this flurry of bad publicity, Merrills CEO
resigned from BofA [11] on Thursday. The news that he spent $1 million to redecorate his office
[12] early last year didnt do much to boost his legacy.
The Treasury has toughened its stance on bailed-out banks, demanding that twenty of them
report on their lending activity [13] and that CEOs personally guarantee theyre complying with
pay caps [14]. Meanwhile, the Wall Street Journal reports that the Treasurys process of picking
which banks get bailout bucks might have been swayed by influential politicians [15], and
ProPublica reports that the Treasury has actually inched pretty close to bank nationalization. [16]
2. Detainee Treatment [17]
President Obama wasted no time following through on promises to shut Gitmo. On Tuesday
night he asked the secretary of defense to halt all military tribunals there for 120 days [18]. On
Thursday he issued executive orders to close Gitmo within a year [19] and shut down CIAs

network of secret prisons. Shuttering Gitmo wont be an easy task [20] and some detainees might
end up settling in the U.S. [21], according to Obamas order.
Obama also issued an order on Thursday to delay the Supreme Courts review [22] of the case of
the only enemy combatant held on U.S. soil. Meanwhile, Obamas pick for director of national
intelligence promised a clean break from the Bush administrations approach to counterterrorism
[23].
3. Madoffs Long Con [24]
A growing number of companies are facing investor suits accusing them of handing over their
cash to Madoff without letting them know [25]. At least seven investment firms with ties to
Madoff are reportedly facing suits [26]. Meanwhile Politico reports that fraud experts suspect
more Madoff-type scandals [27] are lurking in the background, waiting to be uncovered. The
recent charges against Arthur Nadel [28] are case in point.
The SEC is facing embarrassment for yet another Madoff miss [29], this time as part of its 1992
investigation of an accountant who steered investors to Madoff. The only silver lining to
Madoffs fraud? Experts predict it will usher in tougher rules for money managers [30].
http://www.propublica.org/article/this-week-in-scandals-bofa-secrecy-goodbyegitmo-and-more

Slate 60: Donor BiosThe largest American charitable contributions of the year.
http://www.slate.com/id/2209494/

1. Leona M. Helmsley$5.2 billion to the Leona M. and Harry B.

Helmsley Charitable Trust. Helmsley, head of the Helmsley Hotel Chain in
New York, was 87 when she died in 2007. She bequeathed property, cash,
stocks, and bonds worth an estimated $5.2 billionmost of her estateto
the Leona M. and Harry B. Helmsley Charitable Trust, which is poised to
become one of the wealthiest foundations in the country. The estate filed an
inventory of Helmsley's assets with the Surrogate's Court of the State of
New York in November. The estate is still in the process of being settled, and
given the taxes it will have to pay on $52.1 million in bequests to family
members and others, and the current volatility of the financial markets, the
bequest's value could change.
The trust currently has assets valued at approximately $2.9 billion, a
spokeswoman for the trust said. "It is difficult to predict the amounts which
will be generated by the sale of real-estate interests still held by [Helmsley's
estate], all of which will be transferred to the charitable trust," the
spokeswoman said. "The trustees are hopeful that those sales, coupled with
the assets presently in the trust, will result in the trust's assets totaling
approximately $5.2 billion." The foundation will support the care and welfare
of dogs, according to a mission statement Helmsley signed in March 2003.
Her intention to give the bulk of her estate to support dogs has caused both
amusement and outrage, and it is unclear whether her trustees will follow
her directions explicitly and establish the foundation solely for canines'
benefit. One change in her estate was made in June, when the $12 million
she left to a trust for her dog, a white Maltese named Trouble, was reduced
to $2 million by a New York judge who ruled that the remaining $10 million
would go to the charitable trust.
The 2003 mission statement also raises questions about the focus of the
foundation. In that document, Helmsley states that while the charitable trust
should support the care of dogs, it should also support "medical and healthcare services for indigent people, with emphasis on providing care to

children," and support a hospital, to carry out such care. The 2003 document
also gives the trustees some room to determine other causes the foundation
could support. In March 2004, however, Helmsley signed another mission
statement that revoked the 2003 document. In the new statement, Helmsley
dropped the provision to help people.
2. James LeVoy Sorenson$4.5 billion to the Sorenson Legacy
Foundation. Sorenson, a medical-device inventor, was chairman of Sorenson
Development, a holding company and the investment arm of the Sorenson
Companies. Upon his death in January 2008 at age 86, he bequeathed the
bulk of his estatereal estate and cash worth an estimated $4.5 billionto
his family foundation, the Sorenson Legacy Foundation in Salt Lake City. The
foundation supports arts groups, colleges and universities, charities that help
abused children, medical-research programs, religious organizations
(especially those with a Mormon emphasis), and youth groups. Its largest
grants have gone to medical causes. The large infusion of money from the
bequest, which was announced in February, will catapult the foundation into
the ranks of the 20 wealthiest grant-makers in the United States. The estate
is not yet settled, and Sorenson's family has declined to specify which
organizations might eventually benefit. However, the foundation recently
gave $15 million to the University of Utah for a new biomedical and
neurosciences building, which the university plans to name for Sorenson. In
his autobiography, Sorenson described his Depression-era childhood as one
plagued by poverty. The family lived in a tar-paper shack two blocks from
railroad tracks in Yuba City, Calif. "We were among many struggling for
survival," he wrote.
As a child, Sorenson found that he could make a little money selling
newspapers. In a local almond orchard, he collected the nuts that fell to the
ground and sold them for a dime a bucket. In his teenage years, Sorenson
wanted to be a physician, but a two-year stint as a Mormon missionary and
service in World War II intervened. He became a pharmaceuticals salesman
for the Upjohn Co. He also started investing in real estate. Through his sales
work, Sorenson came across physicians and researchers who inspired many
of his early inventions. In 1957 he co-founded Deseret Pharmaceuticals, and
in 1962 he started the Sorenson Research Co., which he sold to Abbott

Laboratories in 1980, becoming the pharmaceutical giant's largest private

shareholder.
Sorenson, who accumulated at least 40 patents by the time he died, is best
known in the medical world for helping to develop the first real-time
computerized heart-monitoring system. He also invented blood-recycling and
infusion systems, disposable surgical masks, and noninvasive intravenous
catheters, among other widely adopted medical devices.
3. Peter G. Peterson and Joan Ganz Cooney$1 billion to the Peter G.
Peterson Foundation, the Peter G. Peterson Institute for International
Economics, and Sesame Workshop. Peterson co-founded the Blackstone
Group, a New York financial firm that holds interests in corporate debt,
hedge funds, private equity, and real estate. He also served as secretary of
commerce during the Nixon administration. Cooney co-founded the
Children's Television Workshop (now called Sesame Workshop). Peterson,
82, and his wife, Joan Cooney, 79, pledged $1 billionof which $200 million
has been paidto establish the Peter G. Peterson Foundation in New York.
When Peterson created the foundation early last year, before the economic
crisis hit, he said he did so to call attention to threats to America's economic
security.
The foundation's primary focus is on problems the country is facing because
of the growth of federal programs like Medicare and Social Security, rapidly
increasing health care costs, ballooning budget and trade deficits, low
savings rates, and soaring foreign debt. Peterson said his foundation will
work to increase public understanding of those problems and encourage
Americans to support efforts to combat them. The foundation will also work
toward making the country's educational system more competitive and
quashing the proliferation of nuclear weapons. In 2008 the foundation
awarded grants totaling nearly $10.6 million. The Nuclear Threat Initiative in
Washington received $3 million to establish an institute for nuclear security;
the Concord Coalition, an Arlington, Va., group Peterson co-founded in 1992
to push for fiscally responsible public policy, received $1.5 million; America's
Promise Alliance, a Washington organization focused on the well-being of
youths, received $1 million; and the Committee on Economic Development,
in Washington, received $1 million.

In addition to their pledge to the foundation, Peterson and Cooney gave $8.5
million to the Peter G. Peterson Institute for International Economics, in
Washington; and $5 million to Sesame Workshop, a New York group that
produces Sesame Street and other educational programming for children.
The couple also donated $1 million to the Museum of Television and Radio in
New York; and $1 million to NewYork-Presbyterian Hospital. Peterson serves
on the boards of the Concord Coalition; the Japan Society and the Museum
of Modern Art, both in New York; and the Peter G. Peterson Institute for
International Economics. Cooney serves on the boards of the Joan Ganz
Cooney Center at Sesame Workshop, NewYork-Presbyterian Hospital, and
the Paley Center for Media, all in New York.
4. Harold Alfond$360 million to the Harold Alfond Foundation. Alfond,
who founded Dexter Shoe Co. and who was 93 when he died in 2007, left his
life savings, about $360 million, to the Harold Alfond Foundation, in Portland,
Maine. The bequest comprises stock in Berkshire Hathaway, cash, and other
securities. He established the foundation in 1950 with $15,000. This new
infusion has increased its assets to about $500 million. Foundation officials
described Alfond as actively involved in his philanthropy. He decided which
charities it would support, and he paid regular visits to those organizations,
talking with staff members and clients. While he did not designate specific
programs or nonprofit groups in his bequest, he stipulated that the
foundation continue to follow his focus of giving primarily to charities in
Maine that concentrate on health care and on education for young people.
One major beneficiary is the Harold Alfond College Challenge, which begins
this month. It provides college-scholarship grants of $500 to every child
born in Maine. Other recipients in Maine are the Boys & Girls Club and the
YMCA at the Alfond Youth Center in Waterville, which will share $5 million;
Colby College, which will receive $3 million for a sports stadium; the Kents
Hill School in Readfield, which will get $2.7 million for new artificial turf and
to renovate locker rooms; and the Coastal Maine Botanical Gardens in
Boothbay, which will receive $1.5 million for a children's garden.
Alfond grew up in Swampscott, Mass., but earned his fortune throughout
Maine. He did not attend college but followed his father into the shoemanufacturing business. He started out making 25 cents an hour at Kesslen

Shoe in Kennebunk and later used money he made from selling his car to
join with his father in starting the Norrwock Shoe Co.. He made his first
million in 1944, when he sold the company for $1.1 million. He started the
Dexter Shoe Co. in 1958 and sold it to Berkshire Hathaway in 1993 for $433
million worth of Berkshire stock. As a result, Alfond and his family became
the second-largest shareholders of Berkshire Hathaway stock at that time.
5. Donald B. and Dorothy Stabler$334.2 million to the Donald B. and
Dorothy L. Stabler Foundation and Lehigh University. Donald Stabler founded
the Stabler Construction Co. in Harrisburg, Pa., in 1940. The company grew
into the Stabler Companies, which included 13 subsidiaries construction,
manufacturing, and real-estate development. Donald Stabler, who died in
1997 at age 89, and his wife, who died in 2005 at 90, left approximately
$300 million to their private foundation, the Donald B. and Dorothy L.
Stabler Foundation in Harrisburg, and approximately $34.2 million to Lehigh
University in Bethlehem, Pa. The Stablers created their family foundation in
1965 after their teenage daughter, Beverly, suffered traumatic head injuries
in a car accident caused by a drunk driver. The grant-maker supports
colleges, hospitals, and other charities in central Pennsylvania.
The bequest to Lehigh is for an endowed scholarship fund and is the largest
gift the university has ever received. The scholarship fund was set up by the
Stablers in 1965 and is designed to support in perpetuity Lehigh students
who demonstrate financial need. Stabler earned a bachelor's degree in 1930
and a master's degree in 1932 from Lehigh, both in civil engineering. He also
received an honorary degree from the institution. He was a member of the
university's board of trustees for more than 30 years, serving as a corporate
member and as a chairman of the development committee. He had also
served as president of Lehigh's alumni association.
6. David G. and Suzanne D. Booth$300 million to the University of
Chicago Booth School of Business. David Booth co-founded Dimensional
Fund Advisors, an international finance firm in Santa Monica, Calif. Suzanne
Booth is a former art conservator. The Booths pledged $300 million to the
University of Chicago's business school. The couple did not earmark the
money for any specific purpose. Officials at the school say that while they
have not mapped out exactly how they will use all of the money, some of it

will go toward supporting current and new faculty members. Other uses,
they say, could include expanding the school's research centers and
broadening its international branches beyond its current London and
Singapore campuses.
Although they would not say whether any of the pledged amount has been
paid, the Booths have arranged to give a portion of the money upfront, while
the remainder will be paid out over a period of years from their family trust.
Some of the pledge will come in the form of cash payments, and some in
shares of stock in Dimensional Holdings, a parent company of Dimensional
Fund Advisors. Booth, who is a trustee of the university, earned a master's in
business administration from its business school in 1971. He said he made
the pledge because he wanted to repay the school for the intellectual
epiphany he had there. Booth's insights into efficient market theories were
influenced by several of the business school's professors, including Merton
Miller, Frank Reilly, and his biggest influence, Eugene Fama, who became a
mentor and helped Booth find his first job.
7. Frank C. Doble$272 million to Lesley University and Tufts University.
Doble founded the Doble Engineering Co., a Watertown, Mass., company that
provides diagnostic test instruments for electric power companies. Doble,
who was 83 when he died in 1969, bequeathed $136 million apiece to Lesley
University in Cambridge, Mass., and Tufts University in Medford, Mass. The
money comes from two trusts that Doble set up in the 1960s to benefit the
two universities. Together, the trusts held an 87 percent stake in Doble
Engineering and were dissolved in December 2007 when the company was
acquired by ESCO Technologies, in St. Louis. Lesley and Tufts received the
money in 2008. Doble stipulated in his will that the money given to each
university should go toward their endowments, but he placed no restrictions
on how the universities could use the earnings. Doble, who graduated from
Tufts in 1911 with a degree in electrical engineering, had long-standing ties
to the university. To pay his Tufts tuition, he installed and wired the
university's telephone system while still a student. He started Doble
Engineering in 1920 in Boston, but in 1925 he moved the company
headquarters to the Tufts campus, where it remained until 1947. He hired

many Tufts graduates over the years, and Tufts engineering professors often
worked closely with his company.
Officials at Tufts said they knew that Doble had named the university as one
of the beneficiaries of the trusts, but they didn't anticipate such a big
bequest and are still deciding how to make the best use of the money. In the
1950s and 1960s, Lesley University (then called Lesley College) was
primarily focused on training its students to become teachers. Doble's gift to
Lesley, where he served as a trustee for nearly 20 years, grew out of his
belief that high-quality elementary education was a crucial factor in
developing the types of students who would want to pursue scientific studies
in college. Officials said the gift to Lesley will endow academic programs and
student scholarships and will be used to expand and renovate university
facilities. In addition to the bequests, each university has received $34
million in dividends from the trusts in the 40 years since Doble's death.
8. Robert L. and Catherine H. McDevitt$250 million to Georgetown
University, Le Moyne College, the Roman Catholic Diocese of Syracuse, and
various other churches and universities. Robert McDevitt owned the McDevitt
Brothers Funeral Home in Binghamton, N.Y. His mother was secretary to A.
Ward Ford, president of the company that eventually became IBM. She
bought IBM stock early in the company's history and gave the stock to
McDevitt, who spent 70 years accumulating additional shares. The majority
of the bequests he left will be paid in IBM stock. McDevitt, who died in
September at age 90, and his wife, Catherine, who died in April at age 84,
left bequests estimated at $250 million to 14 charities, most of which are
religious groups or universities. The largest bequest was left to Georgetown
University, which received about $75 million. The gift will be used to
establish an endowment, the annual income of which will support faculty
positions in theology, computer science, philosophy, and law. The bequest
represents the largest single donation the university has ever received.
McDevitt graduated from Georgetown in 1940 with a bachelor's degree in
social science.
The couple also left about $50 million to Le Moyne College in Syracuse, N.Y.,
to be added to the college's endowment. The gift will endow professorships
in computer science, information processing, physics, and religious

philosophy. It will also support research, staff assistance, equipment, and

technology. This gift is the largest that has ever been made to Le Moyne
College. McDevitt had been a regent emeritus at the college since 1972 and
served as a member of the college's board of trustees from 1977-80. The
third-largest gift from the McDevitts was about $45 million to the Roman
Catholic Diocese of Syracuse. The money will go into two endowments, one
named for the couple and one named in honor of the couple's parents. The
McDevitts' estate has not yet been entirely settled, but estimates are based
on dollar figures left to some groups compared against the percentages
named in McDevitt's will.
9. Michael R. Bloomberg$235 million to arts, education, health care,
and social-service organizations. Bloomberg, 66 and the mayor of New York,
founded Bloomberg LP, a financial-data and news service company in New
York. He gave a total of $235 million to 1,200 nonprofit groups, including
Johns Hopkins Medicine in Baltimore, to support a children's hospital; the
Robin Hood Foundation, a New York organization that works to fight poverty;
and Stand Up to Cancer, a Pasadena, Calif., organization that supports
cancer research and efforts aimed at advancing treatment for cancer
patients. He would not say exactly how much money he gave to those three
organizations or identify other charities to which he gave.
Bloomberg said in 2007 that he planned to concentrate full time on his
philanthropy when he leaves office at the end of this year. To that end, he
established the Bloomberg Family Foundation and asked the city to advise
him about whether he could diversify the investments he makes personally,
and those of his new foundation, without violating his responsibilities as
mayor. The board ruled that he could diversify his investments as long as the
identities of the money managers and the investments they make are kept
secret from him. But life as a full-time philanthropist may have to wait. In
October, Bloomberg asked the New York City Council to ease the term limits
for New York mayors (who are usually allowed to serve only two terms) so
that he could run for office again this year and serve a third term if he wins.
The bid passed, and while Bloomberg has not formally kicked off his
campaign, he has signaled that he intends to run for a third term.

10. Dorothy Clarke Patterson$225 million to the Patterson

Foundation. Patterson was the widow of James J. Patterson, a vice president
and assistant managing editor of the New York Daily News, founded by
Patterson's father, Capt. Joseph Medill Patterson, and Col. Robert R.
McCormick. Capt. Patterson's father and Col. McCormick were cousins and
also co-published the Chicago Tribune. Patterson, who died in 2007 at age
85, bequeathed approximately $225 million to the Patterson Foundation in
Sarasota, Fla., which she established in 1997 with $2 million. Most of the
bequest money is from Tribune Co. stock. Although the foundation has
typically supported charities focused on social-service causes, as well as
educational, literary, religious, and scientific organizations, Debra M. Jacobs,
president of the foundation, said Patterson did not earmark her bequest for
any specific grants or causes. In the fiscal year ending in 2007, the
foundation made grants of $30,000 to $80,000 apiece to several Sarasota
groups including Cardinal Mooney High School, the Goodwill Foundation, and
Incarnation Catholic School. That same year, the foundation also awarded a
grant to Healthy Lifestyle Choices in New Orleans, and in 2008 gave the
Sarasota chapter of the American Red Cross a $100,000 grant for the
group's Disaster Relief Fund.
11. Richard W. Weiland$174.3 million to the Pride Foundation of
Seattle, Stanford University, Nature Conservancy, Children's Hospital
Foundation in Seattle, Fred Hutchinson Cancer Research Center, and United
Way of King County. Weiland, one of the first employees of Microsoft, helped
design and program early interface systems for personal computers. He
retired in 1988 to concentrate on philanthropy. He left $65 million to the
Pride Foundation, a nonprofit group in Seattle that advocates for the rights
of lesbian, gay, bisexual, and transgender people and supports HIV/AIDS
philanthropies. He stipulated that $46 million of the gift be used to establish
an endowment, which foundation officials have named the Weiland
Designated Fund, to benefit 10 groups: AmFAR; Gay & Lesbian Alliance
Against Defamation; Gay, Lesbian, and Straight Education Network; In the
Life; International Gay and Lesbian Human Rights Commission; Lambda
Legal; National Gay and Lesbian Task Force; Parents, Families, and Friends
of Lesbians and Gays; Project Inform; and Servicemembers Legal Defense

Network. He directed the remaining $19 million to the Pride Foundation's

endowment and its scholarship program.
Weiland, who served on the boards of both the Pride Foundation and the
Gay, Lesbian, and Straight Education Network, was a longtime donor to Pride
and to each of the 10 other groups. He left instructions about what
percentage of his donation each group would receive, but he did not place
restrictions on the use of the money. Weiland's second-largest bequest, $60
million, went to Stanford University, where he earned a bachelor's degree in
electrical engineering in 1976. He directed the funds to the school of
humanities and sciences, the school of engineering, the graduate school of
business, and the medical school, and he said each dean could decide how to
use the money. He also designated a portion of the gift to endow a fund for
lesbian, gay, bisexual, and transgender students at the university, and to
endow a fund for undergraduate education. Stanford officials would not say
exactly how much money went to each school and endowment.
Weiland also bequeathed $13 million to the Nature Conservancy in Arlington,
Va., for general use and to buy land for conservation; $8 million to the
Children's Hospital Foundation in Seattle for its endowment and a matching
program to raise money from other donors; and $8 million to the Fred
Hutchinson Cancer Research Center in Seattle. He stipulated that the center
should direct 50 percent of the donation toward HIV/AIDS research, 32
percent to pilot studies and innovative research, and 18 percent to the
general fund. In addition, he left $7.6 million to the United Way of King
County for its Gates Endowment, established by Weiland's friend and
colleague Bill Gates, a co-founder of Microsoft. Weiland bequeathed $3.2
million each to the Environmental Defense Fund in New York; the Lakeside
School, a private school in Seattle that he had attended; and the National
Wildlife Federation in Reston, Va. He also left $3.1 million to the Sierra Club
Foundation.
12. Helen L. Kimmel$156.5 million to the New York University Langone
Medical Center. Kimmel, the widow of Martin S. Kimmel, a real-estate
developer in Hyde Park, N.Y., pledged $150 million to New York University
Langone Medical Center for a new patient facility, which will be named for
Kimmel and her husband, who died last April at the age of 92. A trustee of

the medical center since 1984, Mrs. Kimmel said she and her late husband
had been thinking about giving a large gift to the medical center for several
years. She decided to pledge the money last year because she was
impressed with the work of the medical center's dean, Robert I. Grossman.
"For me, I need to have supreme confidence in the leadership of an
institution before I make this kind of a gift," she said. "Since Dr. Grossman
assumed the leadership of the center in July of 2007, he has inspired faculty,
staff, and trustees alike with a vision for world-class excellence and taking
the medical center to the next level."
In addition to the $150 million commitment, Kimmel gave the medical center
$4 million to establish a center for clinical treatment and research related to
wound healing, the development of drugs that aid the healing process, and
wound-care programs for medical students. She also donated $2.5 million to
the medical center for a cardiology professorship. Kimmel serves on New
York University's board of trustees and on the board of directors of the
American Committee for the Weizmann Institute of Science and of the
American Friends of the Israel Museum.
13. H.F. (Gerry) and Marguerite B. Lenfest$139.9 million to the
Philadelphia Museum of Art, the Curtis Institute of Music, the Williamson
Free School of Mechanical Trades, Washington and Lee University, the Barnes
Foundation, and Columbia University law school. Gerry Lenfest, who founded
Lenfest Communications in Wilmington, Del., before selling the company to
Comcast in 2000, and his wife pledged $27 million to the Philadelphia
Museum of Art for endowment. They also pledged $25 million to the Curtis
Institute of Music, also in Philadelphia. The money will go toward new
housing for students and a rehearsal hall. Gerry Lenfest is chairman of the
board of trustees at both the museum and the music institute.
The Lenfests also pledged $20 million to the Williamson Free School of
Mechanical Trades in Media, Pa., for endowment. Of the total pledged, $5
million has been paid. The gift to the school is part of a matching agreement
between the Lenfests and another couple, Henry M. and Lee Rowan, who
also pledged to give the school $20 million.

In addition, the Lenfests pledged $17 million to Washington and Lee

University in Lexington, Va., to establish two endowments, one of which will
support yearlong faculty sabbaticals and the other of which will support
faculty summer research projects. The university must raise money from
other donors to begin receiving the pledged amount. The Lenfests plan to
make payments on the pledge in 2010, when the university is scheduled to
kick off the public phase of its capital campaign. The couple made another
matching pledge of $15 million to Columbia University's law school in New
York. As with the Washington and Lee pledge, Columbia must raise money
from other donors to receive all of the pledged amount from the Lenfests.
The Lenfests also pledged $3 million to Business Leadership Organized for
Catholic Schools, and $1 million to Independence Seaport Museum, both of
which are in Philadelphia. Along with the pledges they made last year, the
couple also gave $15 millionof which $7.5 million has been paidto the
Barnes Foundation, a Merion, Pa., organization that houses an art collection,
gives classes, and operates a 12-acre arboretum and a library. They gave
$2.4 million to Natural Lands Trust so the group can buy land for
conservation; $1.5 million to Mastery Charter Schools in Philadelphia; and
$1 million each to the Library of Congress; the Salvation Army; and
Swarthmore College. In addition, the Lenfests made gifts totaling $10 million
to about 250 nonprofit groups, including HMS School for Children With
Cerebral Palsy and the Pennsylvania Horticultural Society, both in
Philadelphia; the Philadelphia Orchestra; and American Friends of Israel
Museum, Catholic Medical Mission Board, and Teach for America.
14. David Rockefeller$137.8 million to Harvard University, the Stone
Barns Center for Food and Agriculture, the Mayor's Fund to Advance New
York City, the American Museum of Natural History Southwest Research
Station, the New York Botanical Garden, and the Museum for African Art.
Rockefeller, 93 and heir to the Standard Oil fortune, pledged $100 million to
Harvard University under the condition that the university will receive the
gift upon his death, and an additional $2.5 million, of which nearly $1.3
million has been paid. Of the $100 million, $70 million will support studyabroad programs for undergraduates, plus internships, service, and research
programs in foreign countries, and annual stipends for undergraduates

studying abroad who otherwise could not afford to do so. Rockefeller has
directed the remaining $30 million to three new centers where
undergraduates can study original artworks from Harvard's holdings. The
study-abroad portion of the pledge is of special significance to Rockefeller,
who spent the summer of 1933 in Germany and witnessed the rise of
fascism in that country.
"Increasingly it's important for students to spend a significant amount of
time abroad, and I just think that it isn't enough to know just about this
country," he said. "The best way, from my own experience of learning about
other parts of the world, is to go there and meet the people and live with
them."