Newt Gingrich

Adelson’s other pet project: The Israeli right

Newt's billionaire backer poured tens of millions into a media campaign to get Netanyahu elected prime minister

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Adelson's other pet project: The Israeli rightSheldon Adelson (Credit: AP Photo/Vincent Yu)
This article originally appeared on GlobalPost.

JERUSALEM — As more and more people wonder how long Newt Gingrich will persevere against the growing inevitability of a Mitt Romney victory, one man appears to be holding firm: Sheldon Adelson, the Las Vegas casino mogul who just poured another $5 million into Gingrich’s coffers.

Global PostSuperficially, the two men appear to have little in common. Gingrich, 69, is a lifelong politician and consummate Washington insider whose trajectory has famously taken him through three wives and three religious renderings: the Lutheranism of his birth, the adaptable Southern Baptism of most of his adult life, and now, a Bible-thumping new Catholicism.

Adelson, 78, born to Jewish Ukrainian immigrants in Dorchester, Mass., crawled his way out of the New England working class and, in addition to his vast wealth, is known for a stable and enduring second marriage to Miriam Ochshorn Adelson, with whom he has two children.

She is apparently the key to the one subject that links the two men, the country of her birth, Israel.

According to most reports, Adelson got to his mid-50s before ever really thinking about Israel. Then, a single trip to the Jewish homeland changed his life. When he got back to the United States, the divorced Adelson started telling friends he was interested in meeting an Israeli wife. A mutual friend set him up with Miriam, a physician and expert on addictions. Together they have developed two principal enduring passions and philanthropic commitments: centers for the treatment of drug addicts, and Israel.

The Adelsons have always maintained a mainstream but clearly right-wing line regarding Israel. They are major supporters of the American Israel Political Action Committee, of Birthright, an organization that brings Jewish youth on “roots” trip to Israel, and they love Benjamin Netanyahu, Israel’s conservative prime minister, as well as Gingrich, who has long been a fervent defender of Israel.

Not much is known about Gingrich in Israel, but it is thanks to support from Adelson that, in Israeli media reports, he is almost universally referred to as “Netanyahu’s friend.” There is no public information confirming an actual bond between the prime minister and the former speaker of the House, but Netanyahu is, coincidentally, a thrice-married politician known for a messy personal life and for playing to his religious and conservative base.

And both men benefit greatly from Adelson’s support.

It was in order to help a future Netanyahu candidacy that Adelson, in 2007, established Israel Hayom (Israel Today) a daily tabloid newspaper that quickly rose to have the widest circulation in the country. The newspaper was founded on the conviction, widespread among the Israeli right-wing since Netanyahu’s first term in office in the mid-90s, that the media held a deep-seated antipathy to Netanyahu.

A much-repeated rumor, impossible to verify, has it that Adelson has told Israeli friends he is happy to lose even $150 or $200 million dollars on the venture.

Conservative estimates hold that for now, he has lost at least several tens of millions of dollars. The paper boasts an extensive and expensive list of journalists and analysts, it is printed in massive quantities and distributed widely and for free, yet it does not display advertising in sufficient quantities to offset significant costs. It is a rich man’s luxury.

Israelis uncomfortable with the paper’s big shadow have bestowed it with a jokey moniker, Bibiton, a play on Netanyahu’s nickname, Bibi, and on the Hebrew word for newspaper, Iton.

On Thursday, new revelations about just how deeply Netanyahu is entwined with the Adelson’s newspaper came to light, and now threaten to blow open an unsavory, and perhaps illegal, link between the American billionaire and the prime minister.

Israel’s Channel 10 revealed Wednesday night that Dror Eydar, a media columnist for the Adelson-owned daily, who frequently pens irate articles accusing the Israeli media of an anti-Netanyahu bias, is simultaneously on the prime minister’s payroll, as a speechwriter and adviser.

This is the first indication that a direct connection may exist between the prime minister’s staff and the paper, which while right-wing and pro-Netanyahu, has always maintained a line of neutrality.

It remains unclear just how much the scandal will affect one of the largest media outlets in the country, but some expect there will be resignations from within the prime minister’s office.

To entertain the notion of how big a player the Israel Hayom is in the diminutive and struggling Israeli media market, the mere question of where Israel Hayom is printed is a matter of life or death for several other daily newspapers. Israel HaYom is now printed at the presses owned by the liberal, intellectual and highly regarded Ha’aretz, ideologically Israel Hayom’s antagonist.

The owner of a rival paper, the popular, mass distribution daily Ma’ariv, is known to be vying for the printing contract, which is worth about 100 million shekels, or about $27 million. Whatever Adelson decides could determine, at the twitch of his wrist, the fate of either of these established, traditional national papers.

Not the least of the issues that create unease among wide swathes of Israelis is the fact that Adelson, a controversial and enigmatic whale that has taken virtual residence in the local media pond, is a foreigner residing abroad. He has never pretended to be an Israeli. But whatever decision he makes, in the words of Ma’ariv columnist and Channel 10 analyst Ofer Shelah, “is not a decision for which he will pay any price. We will. Yet the future of pluralism in the Israeli media market may reside in his hands.”

Mordechai Kremnitzer, a professor of law at the Hebrew University of Jerusalem and an expert on the media, points out two positive aspects of Adelson’s emergence on the Israeli scene.

“After many years in which the Israeli right wing claimed it was discriminated against by what was perceived as a generally left-wing media, and after many years in which this was a real perception held by many Israelis, now it is very difficult to make that case. Israel Hayom has the largest readership in the nation, and it is without question a right-wing operation.”

Secondly, in Israel’s very small and concentrated media market, with very few published papers, “the simple addition of another one is a positive thing.”

“The problem,” he said, however, “is that because the paper is distributed for free, the pressure this puts on other papers — that are already struggling to survive — is huge. This could even cause the collapse of another newspaper or papers, and if that happens, it should be viewed with real concern. It would be very negative, principally because it would not be the result of free competition among outlets, but it would simply be a consequence of the huge amount of money Adelson has at his disposal.”

An additional and related concern, Kremnitzer said, is the influence a foreign citizen can acquire on the free market of opinions in Israel.

“And even more worrisome than that is the question of the independence of the prime minister’s judgment when he becomes dependent on a person who is not an Israeli citizen and on a source of funds that is foreign,” he said.

No Israeli law restricts foreign ownership of media outlets, and Adelson’s activities are not challenged even when they are called into question for influencing Israel’s democracy.

“In my opinion, everything Sheldon Adelson has done is completely legal and legitimate,” said Moshe Negbi, a legal analyst for the Voice of Israel radio and a professor of communications at Hebrew University. “I’m sure Sheldon Adelson is not operating for any personal advantage. He does not personally need Netanyahu. He’s not advancing his own interests. I think he believes with his whole heart that Netanyahu is the best medicine for all of Israel’s problems. He has very right-wing views in many areas, and it is his right. In addition, he is willing to spend his own money to advance his ideas and his ideology.”

“It is part of his freedom of expression to use his money to advance his opinions. It’s the same as Amos Shocken, [the owner of Ha’aretz] who I admire greatly, who is willing to lose a lot of money to advance his point of view,” Negbi added.

Negbi’s concern lies with the “inability of the capitalist, democratic system to find the tools to regulate censorship that is brought on by business people who deal in media. There is no legal way to say to a person with money how he can manage his own property.”

“A generation ago, the concern was with governments’ attempts to control opinion. Now, the person who controls such a popular paper has tremendous power over what the public hears and does not hear, and therefore over the public’s political opinions.”

The issue is worldwide, but Israel’s case, according to Negbi, is particularly extreme due to its size. Israel’s total population is 7.5 million people, about the population of northern California’s Bay Area.

Despite the legal propriety of his actions, Adelson, who is accustomed to operating with a very wide berth, occasionally skirts the customs and ethics of Israel’s media world in a manner that raises eyebrows, or sometimes, causes fury.

The latest revelations made by Channel 10, a struggling commercial network known for a bold and authoritative investigative style, are only the latest in a series of skirmishes that threaten his reputation in Israel.

Last September its news division broadcast a critical but unchallenged profile of Adelson’s global casino operations. In reaction, Adelson threatened to sue. Both Channel 10’s news director and its legal counsel examined the claim and determined that no apology was due. But Channel 10 shareholder Ronald Lauder, another conservative American Republican and a friend of Adelson, thought otherwise and ordered that an apology be extended.

When the apology was issued on the main news broadcast last week, outrage ensued, including the resignation of two senior Channel 10 executives.

“This is exactly the crux of the matter,” Shelah, the columnist, said. “The media is at its knees and apologizing for something its professional authorities determined required no apology because they depend on the ongoing financial stream from someone who is a non-resident of the state. In this case, two of them.”

“That two people live in the US and have a relationship does not bother me. And Adelson was just normal in demanding an apology he did not deserve. But the problem was Lauder, who forced this behavior on Channel 10,” he added.

Lauder, of the Lauder cosmetics fortune and a former ambassador to Austria, is also president of the World Jewish Congress and is, like Adelson, close to Netanyahu. In 2011 alone, he pumped an estimated $16 million into Channel 10 to keep it operational.

The realization that in a moment of pique Adelson was able to rock Israel’s entire media world and possibly impact upon a government decision regarding debt relief for Channel 10 caused a nationwide shudder and reconsideration of his influence.

The latest revelations are sure to underscore the concern, expressed by Kremnitzer, the law professor, that Adelson may influence day to day decisions in the prime minister’s office.

“If Channel 10 were obliged to apologize for a broadcast not due to proper procedure like the correction of a mistaken pronouncement, this is clearly a grave abuse of the power of influence. This is what I mean when I say ‘negative and dangerous,’” he said.

The scandals have caused much worried flippancy in Israel about the political Kabuki theater Adeslon may have been dreaming up this winter, in which Gingrich and Netanyahu, both his protégés, could have a run at running a new US-Israel relationship.

“We are a very little country. And into this crucible Sheldon Adelson arrives, with a legitimate motivation. He sees a leftist liberal media and says, ‘I will establish a right-wing conservative balance,’ you know — fair and balanced — and balance out the media market. It’s all well, except for the problem that invariably arises when someone who literally has no budget limits is willing to invest his unending amount of money in Israel,” Shelah said. “What do you do then?”

Saul Alinsky: The activist who terrifies the right

Newt and other conservatives are obsessed with tying Obama to Saul Alinsky. Here's where their hatred comes from

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Saul Alinsky: The activist who terrifies the rightBarack Obama and Saul Alinsky (Credit: AP)

“I am for the Declaration of Independence,” declared Newt Gingrich at a recent campaign appearance, but President Barack Obama “is for the writing of Saul Alinsky. I am for the Constitution; he is for European socialism.” Gingrich is not alone in his demonization of Alinsky, widely viewed as the founding father of community organizing. The right’s attempt to associate Obama with Alinsky began in earnest during the 2008 campaign, though he was eclipsed for the moment by the Rev. Jeremiah Wright Jr. and Obama’s supposed “pal,” ’60s radical Bill Ayers. Glenn Beck gave Alinsky prominent billing on his flowchart of conspiracy, drawing arrows connecting him with Obama and the now-defunct ACORN. Rush Limbaugh has labeled both Obama and Alinsky as representative of an elite class of “genuine America-hating radicals.” The Alinsky connection took on even greater salience as right-wing bloggers and pundits sought to delegitimate Obama’s healthcare program as socialistic and his proposed tax reforms as class warfare.

Guilt by association has been a time-honored tactic in American electioneering since the first decade of the Republic, when opponents of Thomas Jefferson tarred him as a bloodthirsty Jacobin, America’s own Robespierre. When Franklin Delano Roosevelt railed against the “economic royalists” and the “moneyed interests” during his 1936 campaign, his critics on the right saw a Bolshevik conspiracy at work. And for Gingrich and Obama’s critics, Alinsky fills the bill: a self-professed radical with a foreign-sounding name posthumously setting the agenda for an ostensibly radical president.

As with all conspiracy theories, the Alinsky-Obama link rests on a kernel of truth. For three years in the mid-1980s, Obama worked for the Developing Communities Project (DCP) of the Calumet Community Religious Conference (CCRC), a group on Chicago’s South Side whose tactics — meeting with displaced steelworkers and marginalized public housing residents — were inspired by Alinsky. Obama read Alinsky and contributed an essay to a collection of essays on community organizing in Alinsky’s memory published in 1988.

By his own admission, Obama had a rough time being a community organizer. “Sometimes I called a meeting, and nobody showed up,” he recalled. “Sometimes preachers said, ‘Why should I listen to you?’ Sometimes we tried to hold politicians accountable, and they didn’t show up. I couldn’t tell whether I got more out of it than this neighborhood.” By the time he left Chicago for Harvard Law School, Obama was moving down a path that would take him far away from Alinsky-style movement building: He became a civil rights lawyer and law professor and, by the mid-1990s, launched a political career. It is telling that Obama did not mention Alinsky in his memoir, “Dreams From My Father,” or in his bestseller, “The Audacity of Hope,” though anti-Obama conspiracy theorists would, no doubt, find that silence as evidence of his crypto-Alinskyism.

For his part, Alinsky, who died in 1972, never had much patience for elected officials: Change would not come from top-down leadership, but rather from pressure from below. In his view, politicians took the path of least resistance. Among his targets were the Obamas of his day, from alderman to mayors to senators, for as he wrote in his 1971 bestseller, “Rules for Radicals”: “No politician can sit on a hot issue if you make it hot enough.” It’s easy to imagine Alinsky as an advocate for “change we can believe in,” directing the unemployed and the victims of mortgage foreclosures to put pressure on the erstwhile community organizer now in the White House.

Whatever his influence on Obama, Alinsky had a complicated relationship to the political left. In the 1930s, Alinsky had little patience for the bona fide socialists and card-carrying Communists who were prominent advocates of labor and civil rights. He repudiated Marxism then. By the 1960s — his moment of greatest influence — Alinsky was even harsher in his criticism of the New Left. He viewed activists in Students for a Democratic Society as naive and impractical and denounced the tactics of their erstwhile comrades on the militant fringe, like the Black Panthers and the Weather Underground as doomed to failure for their violent tactics and unwillingness to compromise. Alinsky loathed dogmatism of all varieties.

But Alinsky also had little patience for mainstream liberals and European social democrats. He argued that the technocratic style of government by experts and bureaucrats was out of touch with “the people.” Before it became fashionable, he argued for citizen participation in politics and the devolution of power downward, away from Washington and into the hands of ordinary citizens. Though he was a secular Jew, Alinsky forged his closest alliance with Catholic advocates of social justice, whose views at the time could not be described in the easy binary of left versus right. If any political view appealed to Alinsky, it was the Catholic doctrine of “subsidiarity,” namely leaving governance to the smallest possible unit: the community. Alinsky counted among his closest friends the Catholic theologian Jacques Maritain (whose doctrine of personalism was one of the strongest influences on the young Polish cleric Karol Wojtyla, later Pope John Paul II).

Through it all, Alinsky called himself a radical. And he was. Alinsky drew from a deep current of indigenous radicalism in American politics, one that ran from Tom Paine (who was Alinsky’s favorite founding father), through the incipient labor movement (early in his career, Alinsky worked with the Congress of Industrial Organizations), and the civil rights struggle in the 1960s.

In the truest sense of the term, Alinsky was a populist, who sided with those whom he called “the Have-Nots, and the Have-a-Little, Want Mores.” Alinsky’s small-d democracy shaped his strategy. He argued that leaders had to start by listening to ordinary people, not directing them from the top down. In Chicago, Alinsky launched organizing efforts among the ethnic workers in Chicago’s meatpacking plants, whose plight had been made infamous by Upton Sinclair’s “Jungle.” In the early 1960s, he launched a campaign to improve the quality of life for the black residents of Chicago’s Woodlawn neighborhood whose housing stock had been gutted by absentee landlords and whose jobs had disappeared because of the corporate search for cheap labor and high profits. And just before his death, he called for a campaign to tap the disaffected lower middle class and turn their anger away from minorities and toward “specific issues — taxes, jobs, consumer problems, pollution — and from there move on to the larger issues: pollution in the Pentagon and the Congress and the board rooms of the megacorporations.”

Alinsky believed that the key to organizing success was citizen participation, letting the people set the agenda, not setting it for them. Alinsky’s goal was nothing short of unleashing the power of the people to “create mass organizations to seize power and give it to the people; to realize the democratic dream of equality, justice, peace, cooperation, equal and full opportunities for education, full and useful employment, health, and the creation of those circumstances in which men have the chance to live by the values that give meaning to life.”

It is Alinsky’s populism that is most threatening to Gingrich and the right—even if it is a far cry from Obama’s own political agenda. As political scientist Corey Robin has argued, “[c]onservatism is the theoretical voice of this animus against the agency of the subordinate classes. It provides the most consistent and profound argument for why the lower orders should not be allowed to exercise their independent will, to govern themselves or the polity. Submission is their first duty; agency, the prerogative of elites’ hierarchy.”

Here is the root of the right’s suspicion of Alinsky. His goal was giving the dispossessed agency—empowering them to “fight privilege and power, whether it be inherited or acquired.” In Gingrich’s view, by contrast, the “have nots” are fundamentally incapable, responsible for their own fate because of their immorality, indolence and inertia. They will only be uplifted through the discipline of the market. Put poor elementary school children to work to instill in them a work ethic; cut welfare to promote “personal responsibility,” take away food stamps and reduce unemployment benefits so that the jobless are forced to work. The flip side is a call to augment the power of “job creators” by keeping their capital gains and estate taxes low. In this vision, change comes from above, not from below, and wealth whether inherited or acquired is a social good. Gingrich versus Alinsky is not a battle over ideas; it’s about power, who should have it and who should not. That’s why 40 years after his death, the Chicago radical remains on the right’s enemies list.

Thomas J. Sugrue is author of Not Even Past: Barack Obama and the Burden of Race. He is David Boies Professor of History and Sociology at the University of Pennsylvania. 

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The truth about Newt’s favorite punching bag

Saul Alinsky wasn't a socialist and has no ties to Obama. He was a populist patriot who fought for workers' rights

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The truth about Newt's favorite punching bag (Credit: A{)

And now, a word about a good American being demonized, despite being long dead. Saul Alinsky is not around to defend himself, but that hasn’t kept Newt Gingrich from using his name to whip up the froth and frenzy of his followers, whose ignorance of the man is no deterrence to their eagerness, at Gingrich’s behest, to tar and feather him posthumously.

In his speeches, Gingrich pounds away at variations on the theme like the piano player in a cheap Western saloon. He declares, “The centerpiece of this campaign, I believe, is American exceptionalism versus the radicalism of Saul Alinsky,” or, “I believe in the Constitution, I believe in the Federalist Papers. Obama believes in Saul Alinsky and secular European socialist bureaucracy.”

It’s all quite clever and insidious, a classic lesson in how to slander someone who cannot answer from the grave, reminiscent of the tactics Gingrich used in those GOPAC memos back in 1996, when he suggested buzzwords and phrases to demonize opponents: corrupt, decay, pathetic, permissive attitude, self-serving and, of course, radical.

In the case of Saul Alinsky, most of the crowd knows nothing about the target except that they’re supposed to hate him. And why not? There’s the strange foreign name – obviously an alien. One of them. And a socialist at that. What’s a socialist? Don’t know — but Obama’s one, isn’t he? Barack Hussein Obama, Saul Alinsky – bingo! Two peas in a pod, and a sinister, subversive pod at that.

But just who was Alinsky, really? Born in 1909, in the ghetto of Chicago’s South Side, he saw the worst of poverty and felt the ethnic prejudices that fester, then blast into violence when people are crowded into tenements and have too little to eat. He came to believe that working people, poor people, put down and stepped upon, had to organize if they were going to clean up the slums, fight the corruption that exploited them, and get a handhold on the first rung of the ladder up and out.

He became a protégé of labor leader John L. Lewis and took the principles of organizing into the streets, first in his hometown of Chicago, then across the country, showing citizens how to band together and non-violently fight for their rights, then training others to follow in his shoes. Along the way, Alinsky faced down the hatred of establishment politicians, attacks both verbal and physical, and jail time. He was a gutsy guy. Outspoken, confrontational, profane with a caustic wit, one journalist said he looked like an accountant and talked like a stevedore. He had a flair for the dramatic, once sending a neighborhood to dump its trash on the front step of an alderman who was allowing the garbage to pile up. Or immobilizing city hall, a department store or a stockholders meeting with a flood of demonstrators demanding justice.

One thing Newt has right — Saul Alinsky was a proud, self-professed radical. Just look at the titles of two of his books – “Reveille for Radicals” and “Rules for Radicals.” But a communist or socialist he was not. He worked with them on behalf of social justice, just as he worked alongside the Catholic archdiocese in Chicago. When he went to Rochester, N.Y., to help organize the African-American community there after a fatal race riot, he was first invited by the local Council of Churches. It was conscience they all had in common, not ideology.

As far as his connection with Barack Obama, the president was just a kid in Hawaii when Alinsky died, something you would expect a good historian, as Gingrich claims to be, to know. The two men never met, although when Obama arrived on the South Side of Chicago as a community organizer, some of his grass-roots work with the poor was with an Alinsky-affiliated organization.

But that’s how it goes in the fight for basic human rights. Alinsky’s influence crops up all across the spectrum, even in the Tea Party. Get this: According to the Wall Street Journal, the conservative holy of holies, the one-time Republican majority leader in the House of Representatives, Dick Armey, whose Freedomworks organization helps bankroll the Tea Party, gives copies of Alinsky’s “Rules for Radicals” to Tea Party leaders.

Watch out Dick – you could be next on Newt’s list, although, curiously, in his fight against the wealthy Mitt Romney, Gingrich himself has stolen a page from Alinsky’s populist playbook. After Romney beat him in the Florida primary, Newt insisted he would continue the fight for the nomination and shouted, “We’re going to have people power defeat money power,” a sentiment that was Saul Alinsky through and through.

Alinsky died, suddenly, in 1972. At the time, he was planning to mount a campaign to organize white, middle-class Americans into a national movement for progressive change, a movement he vowed to take into the halls of Congress and – his words — “the boardrooms of the megacorporations.”

Maybe that’s why Newt Gingrich has been slandering Alinsky’s name. Maybe he’s afraid, afraid that the very white folks he’s been rousing to frenzy will discover who Saul Alinsky was – a patriot in a long line of patriots, who scorned the malignant narcissism of duplicitous politicians and taught everyday Americans to think for themselves and fight together for a better life. That’s the American way, and any good historian would know it.

Bill Moyers is managing editor of the new weekly public affairs program, "Moyers & Company," airing on public television. Check local airtimes or comment at www.BillMoyers.com.

Michael Winship is senior writing fellow at Demos and a senior writer of the new series, Moyers & Company, airing on public television.

WikiLeaks sheds light on Adelson’s Asia business

Cable describes shutdown of a $100 million Adelson nonprofit in Beijing and refers to "missteps" in China

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WikiLeaks sheds light on Adelson's Asia businessSheldon Adelson, chief executive of Las Vegas Sands Corporation, and his wife Miriam attend the ribbon cutting of the Four Seasons Macao hotel and casino in Macau. (Credit: Bobby Yip / Reuters)

We’ve learned this election cycle that casino magnate Sheldon Adelson isn’t afraid to throw around vast sums of money to get what he wants — he and his family have given at least $11 million to help the Newt Gingrich campaign.

It hasn’t gotten any notice since Adelson became a player in presidential politics, but it turns out that the trove of diplomatic cables published by WikiLeaks contains an interesting anecdote about how Adelson aggressively promoted his casino and hotel business in the Chinese territory of Macau — and a run-in he had with the central government in Beijing.

First, some context. The news broke last March that Adelson’s Las Vegas Sands Corp. is under federal investigation into whether it has complied with the Foreign Corrupt Practices Act. The act makes it illegal to bribe foreign officials to obtain business deals.

The investigation reportedly came about after a breach-of-contract lawsuit was filed by former Sands executive Steven Jacobs that floated the possibility of an FCPA violation by Sands:

Jacobs alleges, among other things, that Adelson wanted him to conduct secret investigations of the dealings of the Macau government officials to dig up dirt so they could be intimidated, and that Adelson wanted the corporation to continue using the services of a Macau attorney with a bad reputation “despite concerns that [the individual's] retention posed serious risk under the criminal provisions of the United States code commonly known as the Foreign Corrupt Practices Act.”

A confidential September 2009 cable sent from the U.S. consulate in Hong Kong back to Washington describes Adelson’s business practices in Macau. Unlike its competitor Wynn, Adelson’s Sands was lobbying Chinese government officials in Beijing rather than focusing exclusively on local officials in Macau, according to the cable. The issues of concern to Sands included “foreign labor visas, gaming oversight and regulation, infrastructure development, and perceived interference in personnel management decisions affecting Macau resident workers.”

The cable goes on to describe Adelson’s personal interest in direct engagement with Beijing and the intriguing matter of the “Adelson Center for U.S.-China Enterprise” in Beijing, a nonprofit that was to be financed with a whopping $100 million. A former Sands executive told an unnamed American official that the Chinese government forced Sands to close the center following government inquiries about “funds transfer mechanisms used by [Sands] to establish the now-closed USD 100 million Adelson Center.” The nature of those mechanisms is not specified.

The cable continues that Sands’ “current efforts in Beijing are designed in part to offset these early ‘missteps’” — but there is no elaboration on what the “missteps” were. Sands did not immediately respond to a request for comment.

As for what the Adelson Center was supposed to do, the New Yorker reported in June 2008 that it was to act as a kind of facilitator for U.S. businesses looking to operate in China:

In early August [2008], during the Olympic Games, Las Vegas Sands will launch the Adelson Center for U.S.-China Enterprise, in Beijing, which seems positioned to wield substantial influence. If you were an American businessman coming to China, the Sands’s Bill Weidner testified at the Suen trial, “you might need a logistics partner to deliver your goods. You might need a manufacturer to manufacture your goods. You might need a law firm. You might need an accounting firm. Whatever it would take to get you involved in business in China, we would-the center would help arrange for you.”

Here is the logo for the center from a filing with the U.S. Patent and Trademark Office; it’s not clear that it was ever used:

Below is the relevant section of the cable. Another interesting moment comes further down in the cable when Sands executive Jacobs (who later sued the company) is quoted as saying that a new regulation about how much Macau casino junket operators could be paid “will be routinely violated.”

LVS [Las Vegas Sands] Macau President and CEO Steve Jacobs told EP Chief  on September 17 that LVS restarted its government outreach  efforts in Beijing over the past several months, and achieved  “great success” in building direct relationships with senior  officials.  Jacobs said LVS’s direct engagement in Beijing is  designed to build goodwill, explain the company’s current and  planned contributions to Macau’s economy and society, and encourage freer movement of PRC residents into Macau.  LVS CEO and majority shareholder Sheldon Adelson highly values  direct engagement in Beijing, according to Jacobs, especially  given the impact of Beijing’s visa policies on the company’s  growing mass market operations in Macau.

LVS’s pre-Olympic outreach efforts were suspended in early 2009, after the PRC forced the company to close its  newly established non-profit Adelson Center for U.S.-China Enterprise in Beijing.  The PRC’s State Administration of Foreign Exchange in China, according to LVS’s latest quarterly report published in August 2009, “made inquiries and requested and obtained documents relating to certain payments made by the company’s wholly foreign-owned enterprises to counterparties and other vendors in China.” A  former LVS senior executive told Econoff that the PRC inquiries relate primarily to funds transfer mechanisms used by LVS to establish the now-closed USD 100 million Adelson Center.  LVS’s current efforts in Beijing are designed in part to offset these early “missteps.”

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Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

The GOP hate-off continues

Romney's inevitable, but Newt's far-right backers are ready to destroy the Massachusetts moderate to win in 2016

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The GOP hate-off continuesRepublican presidential candidate, former Massachusetts Gov. Mitt Romney, reacts to supporters at his Florida primary primary night rally in Tampa, Fla., Tuesday, Jan. 31, 2012. (AP Photo/Gerald Herbert) (Credit: AP)

Mitt Romney won the most important Republican presidential primary to date, taking Florida with 46 percent of the vote, to 32 for Newt Gingrich. But Gingrich vows to soldier on, and I expect him to. This is a hate-off.

The Republican Party is split between its two personalities: Predatory finance capital and angry white male faux-populism. That’s trouble enough. Add to that Gingrich’s fury at Romney’s bottomless pockets full of nasty ads, and this is a party headed for a crack-up.

November’s still a long way away, but it’s hard to imagine President Obama losing Florida after the slime-fest we’ve just witnessed. Both Gingrich and Romney are seeing their negatives go up as the campaign goes on, while Obama’s approval rating continues to climb. I think the president is largely responsible for his ratings rise, because he’s brought the fight to the GOP since the debt-ceiling debacle.

But one thing Romney clearly had going for him when the race began, in the face of Tea Party suspicion about his conservative credentials, was that voters viewed him benignly. Between revelations about his tax rate plus his Bain Capital work, and Gingrich’s relentless attacks, Romney’s losing the main thing he had going for him, his generic affability. In November, polls showed Romney beating Obama by 13 points in Florida; recent polls give Obama the edge, 44 to 36 percent. If the hate-off continues, it will hurt him in November, and not just in Florida.

Romney pretends to disagree. “A competitive primary does not divide us, it prepares us, and we will win,” he told the cheering crowd of Florida supporters Tuesday night. Deep-pockets Mitt also claimed he was running “a people’s campaign,” even though his anti-Gingrich ads outnumbered pro-Gingrich ads by a staggering 13,000 to 200 in Florida.

So does Gingrich have a prayer? Not really. But he’s still picking up the remnants of the Tea Party brigade. Rick Perry, of course, endorsed him right away, Herman Cain (hilariously) joined him this week. And just as she did in South Carolina, Sarah Palin held back from formally endorsing Gingrich, but again told voters they ought to vote for him in this race, just to keep the contest going (and bug liberals, as though liberals wouldn’t be elated to see Obama run against Newt). What’s she up to? I think Palin and other far-right Gingrich supporters would be thrilled to bloody Romney and see him lose to Obama. That would let them argue that GOP moderates are electoral poison, and only a sharp turn right will bring the party back from the dead. In fact, if Romney is the nominee and loses to Obama, it will likely be because he stiffed independents and moderates to make that sharp turn right, turning his back on climate change and his own healthcare reform, as well as running to Gingrich’s right on immigration with his pledge to veto the DREAM act.

No matter what Gingrich or Palin does, Romney will also be a tough sell in November, because he’s so undeniably Mr. 1 Percent (or I guess Mr. .0006 percent), the face of the forces of wealth Americans are beginning to scowl at. In his victory speech Tuesday he took a moment to recall that Obama promised that if he didn’t improve the economy, voters should make him a one-term president, and he declared, “Well, I’m here to collect.” It wasn’t quite “I like to be able to fire people,” but it did sound like the landlord or the bill collector at the door. Romney continues to seem like he’s doing his best imitation of a human being, but he hasn’t quite mastered it yet.

But Gingrich’s rambling, grandiose speech went off the rails. The crowd waved signs saying “46 states to go,” and their man told them “we are going to contest every place and we are going to win.” He never actually “conceded” to Romney; the speech was a long, bizarre peroration on the things he’d do his first day in office, when he’s sworn in as president, which a reality-based candidate would know will never happen. It was mostly garden-variety GOP stuff – repeal Obamacare, Dodd-Frank and Sarbanes-Oxley. But it also included a wet kiss for Sheldon Adelson — a promise “to instruct the State Department, that day, to open the embassy in Jerusalem” – plus a generic red-meat promise to repeal “every anti-religious act of the Obama administration, as of that moment.” Even his daughter, Jackie Gingrich Cushman, wore a frozen, pained smile as the speech wore on; the crowd’s clapping ebbed with every delusional promise.

The night hit bottom, though, when Gingrich’s former communications director Rick Tyler, now running his friendly super PAC, told Rachel Maddow and Rev. Al Sharpton on MSNBC that the Democrats were the party that aborted black babies, and that African-Americans live in housing projects and collect welfare checks, and need the movie “Red Tails” because they lack role models – as though that guy in the White House isn’t a black role model, one of millions. It was the GOP id unleashed.

If you watch television for 30 seconds you’ll hear pundits (including me) grasp to compare the ongoing 2012 GOP primary to the long 2008 Democratic contest. But there’s really no comparison. The 2008 Clinton-Obama showdown had its bitter moments, but nothing like the unrelenting nastiness of this race. And people who argued that the extended contest was pumping up voter interest in the November election and building and mobilizing the Democratic base turned out to be right.

The GOP hate-off isn’t having that effect: Turnout in the first three 2012 contests was flat, and in Florida it was down from 2008. Given the conventional MSM wisdom that the Tea Party-dominated Republican base is some newly invigorated electoral powerhouse that can’t wait to get to the polls to turn out Barack Hussein Obama, you’d expect a whole lot more people to be casting votes as the 2012 campaign gets into gear. But then the MSM has taken the Tea Party way too seriously from the start. Still, it’s hard for any of us to read the new GOP. There will be a rote quality to the coverage from here on out, because Romney’s nomination is almost certain. Yet we still have to pay attention to see how far the right wing will go to destroy the former Massachusetts moderate who has indulged their every demand – except that he leave the race.

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Joan Walsh

Joan Walsh is Salon's editor at large.

Rick Tyler: Democrats abort black babies

Newt Gingrich's guy spews racist nonsense in an epic MSNBC showdown VIDEO

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Rick Tyler: Democrats abort black babiesRepublican presidential candidate former House Speaker Newt Gingrich pauses as he speaks during a Florida Republican presidential primary night rally, Tuesday, Jan. 31, 2012, in Orlando, Fla. (AP Photo/Matt Rourke) (Credit: AP)

I’m supposed to be writing a piece for the morning making sense of the Florida primary, but I have to post this interview Rachel Maddow and Rev. Al Sharpton just did with Rick Tyler, Newt Gingrich’s former communications director who now runs his Sheldon Adelson-funded super PAC. Normally he’s pretty sedate on television, at least lately. Not Tuesday night.

Maddow asked Tyler about some of Gingrich’s racially coded attacks on President Obama, and Tyler went off. He began by comparing the Republican and Democratic platforms of 1856 and finding the Democratic platform was racist, and that was about the last true thing he said. From claiming Democrats “abort [black] babies” to charging that African-Americans need the movie “Red Tails” because they don’t have any positive role models, it was the GOP id unleashed. Watch at your peril.

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Joan Walsh

Joan Walsh is Salon's editor at large.

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