Washington Lobbyists for Hire and the US as the Avatar of Human Rights: an undercover report
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
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 China’s access to American markets should be tied to improved human rights – specifically its willingness to “recognize the legitimacy of those kids that were carrying the Statue of Liberty” at Tiananmen Square – but 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
How is it that regimes widely acknowledged to be the world’s most oppressive nevertheless continually win favors in
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 public-relations specialist Ivy Lee.
Ivy Lee whose portfolio also included the Rockefellers
Exposure of Lee’s 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 government’s 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 contracts – for Nicolae Ceausescu of
Although there are distinct limits to what they can achieve, lobbyists are the crucial conduit through which pariah regimes advance their interests in
Generally, though, lobbyists’ victories are more discreet. In 2004 six former members of Congress served as “election observers” in
Patton Boggs
Between 1999 and 2000, the Carmen Group received more than $1 million from the government of
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 lobbyist-orchestrated diplomacy – including most of the projects discussed above – has 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
The first step was to select a suitably distasteful would-be client. Given that my first pick,
Following Niyazov’s demise, Minister of Health Kurbanguly Berdymukhamedov, the Turkmenbashi’s personal dentist, became acting president.[2] He had been responsible, according to the BBC, for implementing Niyazov’s 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 February – he 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 Berdymukhamedov’s 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 cafes 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 Turkmen’s 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
If flacking for
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
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 firm’s 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 general – the dictatorship of General Sani Abacha in Nigeria, for example, which employed the firm in 1995, the same year it hanged nine democracy activists – but 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 firm’s “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 hadn’t 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, “we’re not prepared to share much more than what I’ve 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 Schumacher’s 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 ex-ambassador 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 agency’s 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
“People like Beth can call up these policymakers,” Schumacher said with a shake of the head, as if he himself were in awe of Jones’s 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. “
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
“What can I say?” Dyck crowed, throwing her arms out.
Turning to media strategy, Schumacher presented APCO’s broad review of the coverage. The bad news: almost all mentions of
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. “[We’d] say we’re working for The Maldon Group on behalf of the government and would file semiannual reports. And that’s 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 APCO’s
Paid advertising and special events would cost extra, and Schumacher proposed that we set up a new website for the Turkmen Embassy in
What would we get for our money? APCO’s 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
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
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 strategy’s third item – building “coalition support,” which meant developing seemingly independent and therefore more credible allies to offer favorable views about
How could we use think tanks and academics? I wondered. “I’m 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
Another option, he explained, would be to pay Roll Call and The Economist to host a
“That’s how you do it,” Schumacher said. The Maldon Group wouldn’t have its own speaker on the dais, but APCO would line up a few people – possibilities included an administration official or an executive from an American firm involved in
The following morning, Ricardo and I headed to the offices of Cassidy & Associates, perhaps the most prominent of all the
Cassidy’s headquarters are just a block away from APCO’s 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 firm’s 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 firm’s 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 nation’s 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. Hartley’s 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 Cassidy’s work for
Hartley returned to that theme during the meeting at Cassidy’s office. His firm, he said after passing Ricardo and me copies of a corporate brochure, [8] 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 board – at the staff level, the committee level, the Republican and Democratic leadership, and the administration.
“We know you’re talking to other firms,” Hartley said pointedly. “You’re going to have a hard time matching … [the] types of successes” his firm had racked up. For example, thanks to Cassidy’s 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 world’s sixth worst dictator,” grimacing as he stated that last word. “He’s still not a great guy,” he went on, “but he’s 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, he’s not, but we’re making progress.”[9]
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
The second campaign, Warburg said, involved winning permission in 1995 for President Lee Teng-hui of
Warburg also mentioned his past work for Merhav, an Israeli firm with major interests in
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 won’t pursue the metaphor.” To which Hartley added, “We won’t 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 firm’s lifeblood; while it pained me “to look like I’m being evasive,” there wasn’t much I could say.
“We’re going to ask questions, and you may have to throw the wall up,” Hartley said. “Don’t mention names if you can’t 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 doesn’t have to be great detail,” he said. “The way we would handle this, there’d 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 up – something, he said, for me to share “with your friends and investors back in
“It’s 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 annually – and 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 firm’s lobbyists. “You’ve looked at our bios,” he said. “Look at our track record and what we’ve charged for other representations … and you’ll see you’re not being gouged.”
While insisting that I didn’t write the checks, I said the figure seemed reasonable to me. “Others will do it for less, but you won’t get people with our experience, our knowledge of
Cassidy saw its strategy as having two central prongs, one targeting policymakers and the other targeting the media. Among the questions I’d asked had been whether it was advisable to arrange a trip to
Bringing Turkmen officials to
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
Two weeks after the meeting, Cassidy laid out more of its strategic thinking in a twelve-page proposal that it sent to me by email. The firm’s lobbyists would educate senior government officials and opinion makers “on positive developments taking place in
Of course, “attention” and “scrutiny” are essentially synonymous; the only reason that more of it posed a challenge to Cassidy’s proposed lobbying campaign was that in the case of
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
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
It was impossible to say whether a lobbying firm was directly involved in orchestrating the event. But other than its unfortunate title – had APCO been running the show, it would have been something like “Africa and American Energy Security: Partners in Prosperity” – Angola 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, Angola’s 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 government’s 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
This article appeared in Harpers Magazine, July 2007. Posted on
Ken Silverstein’s “Washington Babylon” weblog, focused on political corruption in
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