Tuesday, June 26, 2007

PERM Fake Job Ads defraud Americans to secure green cards for immigrants

Youtube
Immigration attorneys from Cohen & Grigsby explains how they assist employers in running classified ads with the goal of NOT finding any qualified applicants, and the steps they go through to disqualify even the most qualified Americans in order to secure green cards for H-1b workers. See what Bush and Congress really mean by a "shortage of skilled U.S. workers." Microsoft, Oracle, Hewlett-Packard, and thousands of other companies are running fake ads in Sunday newspapers across the country each week.




Loudobbs report

Norman Mineta Confirms That Dick Cheney Ordered Stand Down on 9/11

Former Transportation Secretary Also Reveals Lynn Cheney Was in PEOC Bunker and Contradicts 9/11 Commission Report's Account of Dick Cheney's Timetable.

Aaron Dykes / JonesReport | June 26, 2007

Former Transportation Secretary Norman Mineta answered questions from members of 9/11 Truth Seattle.org about his testimony before the 9/11 Commission report.

Mineta says Vice President Cheney was "absolutely" already there when he arrived at approximately 9:25 a.m. in the PEOC (Presidential Emergency Operations Center) bunker on the morning of 9/11. Mineta seemed shocked to learn that the 9/11 Commission Report claimed Cheney had not arrived there until 9:58-- after the Pentagon had been hit, a report that Mineta definitively contradicted.

Norman Mineta revealed that Lynn Cheney was also in the PEOC bunker already at the time of his arrival, along with a number of other staff.

Mineta is on video testifying before the 9/11 Commission , though it was omitted from their final report. He told Lee Hamilton:

“During the time that the airplane was coming into the Pentagon, there was a young man who would come in and say to the Vice President…the plane is 50 miles out…the plane is 30 miles out….and when it got down to the plane is 10 miles out, the young man also said to the vice president “do the orders still stand?” And the Vice President turned and whipped his neck around and said “Of course the orders still stand, have you heard anything to the contrary!?

Mineta confirmed his statements with reporters, "When I overheard something about 'the orders still stand' and so, what I thought of was that they had already made the decision to shoot something down."

Mineta was still in the PEOG bunker when the plane was reported down in Shanksville, Pennsylvania.

"I remember later on when I heard about the Shanksville plane going down, the Vice President was right across from me, and I said, 'Do you think that we shot it down ourselves?' He said, 'I don't know.' He said, 'Let's find out.' So he had someone check with the Pentagon. That was about maybe, let's say 10:30 or so, and we never heard back from the DoD until probably about 12:30. And they said, 'No, we didn't do it.'"

The two hour time delay is suspicious given the Vice President's own account of the dedicated video communications available that morning, as he told it to Tim Russert of Meet the Press on September 16, 2001 .

"We had access, secured communications with Air Force One, with the secretary of Defense over in the Pentagon. We had also the secure videoconference that ties together the White House, CIA, State, Justice, Defense--a very useful and valuable facility. We have the counterterrorism task force up on that net. And so I was in a position to be able to see all the stuff coming in, receive reports and then make decisions in terms of acting with it."

At a bare minimum, this confirmation by Norman Mineta is in gross contradiction to the 9/11 Commission Report and poses serious questions about the Vice President's role in ordering NORAD to stand down on 9/11.

Blair set to clinch job as world’s man in the Middle East

Tom Baldwin, Greg Hurst and Philip Webster
London Times
Tuesday June 26, 2007

Tony Blair’s nomination for the post of international envoy in the Middle East is likely to be confirmed as early as today despite grumbles from Europe and last-minute wrangles over his job description.

Sources in London and Washington indicated yesterday that the announcement will be made if agreement is reached between the so-called “Quartet” of powers – America, Europe, Russia and the United Nations – which oversee the Middle East peace process.

Mr Blair’s nomination has been pushed by Condoleezza Rice, the US Secretary of State, and – to a lesser extent – the White House, in behind-the-scenes negotiations over recent months.

The prospects of Mr Blair being confirmed in a new post before he leaves Downing Street tomorrow have hardened in recent days. Yesterday his farewell continued with his last Commons statement, reporting on the EU Brussels summit, and his final appearance as Prime Minister before the Parliamentary Labour Party.

Last week British diplomats expressed irritation over some apparently premature leaks from the State Department about the likelihood of Mr Blair taking up the envoy job.

At the same time, a close ally pointed out that he was reluctant to do it unless there was a real prospect of a “political process” in peace talks which would give him the opportunity to use his “mediation skills set”.

The Quartet’s previous envoy, James Wolfensohn, the former president of the World Bank, focused largely on economic issues in Gaza and resigned in frustration last year.

But Sean McCormack, the State Department spokesman, has emphasised that Mr Blair’s “job description” would be an expansion of the “very discrete, circumscribed way” in which Mr Wolfensohn had been forced to operate.

He said that in the envoy’s role of building up the institutions of a future Palestinian state, it “would also be important to help the Palestinians build up political institutions”.

Mr Blair is understood to be keen to take on the role this year after a summer break because he views finding a solution to the Middle East crisis as central to tackling global ex-tremism. It would also offer him a second chance with many Muslims in the region who loathe him as ally-in-chief to President Bush over the war in Iraq. Speculation that Jona-than Powell, currently Downing Street’s chief of staff, could accompany him in the new position was yesterday discounted by sources in No 10.

Although Russian and EU leaders are unlikely to block Mr Blair’s appointment, they view him as a tainted figure for having led Britain into the Iraq war, as well as failing to call for a ceasefire in Israel’s conflict in Lebanon last year.

Javier Solana, the EU foreign policy chief, is said to be particularly sceptical about Mr Blair’s appointment, while Kofi An-nan, the former UN Secretary-General, is known to have fa-voured Joschka Fischer, the ex-German Foreign Minister, for the job as Middle East envoy.

According to Berlin, the German Government was not informed about the sensitive appointment, even though Frank-Walter Steinmeier, the Foreign Minister, represents the EU in the Quartet.

“I cannot imagine how Blair, as one of the main protagonists of the Iraq war, wants to gain confidence in the Middle East,” said Martin Schulz, chairman of the Social Democratic group in the European Parliament.

In the Commons yesterday, Mr Blair claimed that he had helped Britain to return to a leadership role in Europe.

Dismissing calls by the Conservatives and some prominent Labour backbenchers for a referendum on the new treaty, Mr Blair hailed a success for his attempts to reengage with Europe after the confrontation-al tone of Margaret Thatcher and John Major.

Later, in exchanges with MPs, Mr Blair tried to embarrass Mr Cameron by making an unusual plea to the Tories to abandon their sceptical position on Europe, calling it a “virus” infecting the party.

9/11 and the British Broadcasting Conspiracy

Google Video
Tuesday June 26, 2007

911 and the British Broadcasting Conspiracy - new documentary by Adrian Connock and David Shayler about the BBC's selective and distorted 911 coverage. With particular reference to the Conspiracy Files programme aired on BBC Two on February 18th 2007.


US to introduce 10 fingerprints system for visitors

Raw Story
Tuesday June 26, 2007

The United States is beefing up security for foreign visitors who will have to give 10 digital fingerprints when they arrive, an official from the US Department for Homeland Security said Monday.

Higher quality 10 fingerprint scanners will be evaluated during a pilot programme at 10 airports, including the John F Kennedy Airport in New York, Chicago's O'Hare and Washington Dulles International, to replace the current system which requires two fingerprints and a photograph.

The new system is also being piloted in several US embassies abroad, including Brussels, said P.T. Wright, operations director for the US Department of Homeland Security's US-VISIT Program.

The 10-fingerprint requirement will apply to travellers from those EU nations and other countries which enjoy the US visa waiver programme, as well as for visitors from others who need visas to visit the US.

The US-VISIT programme will provide the necessary technology and fingerprint analysis. The prints will be checked against US watch lists.

Border checks may soon be further upgraded to include other biometric data, such as facial and retina scans, said Wright.

US border controls have tightened considerably since the September 11, 2001 attacks, when terrorists hijacked and crashed four passenger airplanes, killing nearly 3,000 people.

A Strong Push From Backstage

By Jo Becker and Barton Gellman
Washington Post Staff Writers
Tuesday, June 26, 2007; Page A01

Air Force Two touched down at the Greenbrier Valley Airport in West Virginia on Feb. 6, 2003, carrying Vice President Cheney to the annual retreat of Republican House and Senate leaders. He had come to sell them on the economic centerpiece of President Bush's first term: a $674 billion tax cut.

Corbis">[Photo]
When the president announced his economic package the day after this Cabinet meeting in January 2003, Cheney had one more thing to add. Corbis

Cheney had spent months making sure the package contained everything he wanted. One thing was missing.

The president had accepted Cheney's diagnosis that the sluggish economy needed a jolt, overruling senior economic advisers who forecast dangerous budget deficits. But Bush rejected one of Cheney's remedies: deep reductions in the capital gains tax on investments.

The vice president "was just hot on that," said Cesar Conda, then Cheney's domestic policy adviser. "It goes to show you: He wins and he loses, and he lost on that one."

Not for long.

As the Republican lawmakers debated in a closed-door session at the Greenbrier resort, the vice president revived the argument, touting his idea as a way to energize a stock market battered by scandals such as Enron. House allies inserted Cheney's cut into their package. But that came at the expense of one of Bush's priorities: abolishing the tax on stock dividends.

Cheney has changed history more than once, earning his reputation as the nation's most powerful vice president. His impact has been on public display in the arenas of foreign policy and homeland security, and in a long-running battle to broaden presidential authority. But he has also been the unseen hand behind some of the president's major domestic initiatives.

Scores of interviews with advisers to the president and vice president, as well as with other senior officials throughout the government, offer a backstage view of how the Bush White House operates. The president is "the decider," as Bush puts it, but the vice president often serves up his menu of choices.

Cheney led a group that winnowed the president's list of potential Supreme Court nominees. Cheney resolved a crisis in the space program after the Columbia shuttle disaster. Cheney fashioned a controversial truce between the legislative and executive branches -- and averted resignations at the top of the Justice Department and the FBI -- over the right of law enforcement authorities to investigate political corruption in Congress.

And it was Cheney who served as the guardian of conservative orthodoxy on budget and tax matters. He shaped and pushed through Bush's tax cuts, blunting the influence of Federal Reserve Chairman Alan Greenspan, a longtime friend, and of Cabinet rivals he had played a principal role in selecting. He managed to overcome the president's "compassionate conservative" resistance to multiple breaks for the wealthy. He even orchestrated a decision to let a GOP senator switch parties -- giving control of the chamber to Democrats -- rather than meet the senator's demand for billions of dollars in new spending.

On the home front, the vice president is well known for leading a secretive task force on energy policy. But in a town where politicians routinely scurry for credit, Cheney more often kept his role concealed, even from top Bush advisers.

"A lot of it was a black box, and I think designedly so," said former Bush speechwriter David Frum. "It was like -- you know that experiment where you pass a magnet under the table and you see the iron filings on the top of the table move? You know there's a magnet there because of what you see happening, but you never see the magnet."

A 'More Effective Role'

When Bush tapped Cheney to be his running mate seven years ago, he chose a man who had put a great deal of thought into how a vice president can transform himself from a funeral-trotting figurehead into a center of real power.

[Photo]
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Photo: President Bush and Vice President Cheney check their watches in the White House on Jan. 26, 2001, following the ceremonial swearing-in ceremony for Secretary of State Colin Powell. (White House via Reuters)

As President Gerald R. Ford's chief of staff in the 1970s, Cheney saw firsthand how White House policies got shaped -- and how a vice president such as Nelson Rockefeller could become so marginalized as to be dumped from the ticket. Former Army secretary John O. Marsh Jr. said Cheney knew that he needed to control the process by which the president makes choices to ride "the rushing river of power" that winds through the West Wing to the Oval Office.

"Dick's major concern, one of them was, and I agree, that there needs to be a greater and more effective role for the vice president," Marsh, a longtime Cheney friend, said in an interview. "He holds the view, as do I, that the vice president should be the chief of staff in effect, that everything should run through his office."

In Bush, Cheney found the perfect partner. The president's willingness to delegate left plenty of room for his more detail-oriented vice president.

"My impression is that the president thinks that the Reagan style of leadership is best -- guiding the ship of state from high up on the mast," said former White House lawyer Bradford A. Berenson. "It seems to me that the vice president is more willing to get down in the wheelhouse below the decks."

When the space shuttle Columbia disintegrated over Texas on Feb. 1, 2003, for example, Bush was consumed with concern for the families of the seven dead astronauts. That left Cheney to make the first critical decisions about the future of manned spaceflight.

Even as the vice president and others were grappling with the invasion of Iraq, Cheney crafted a solution to the most pressing problem facing the space program, said former NASA administrator Sean O'Keefe, a Cheney protege.

With its shuttle fleet grounded, the space agency had no way to resupply the crew aboard the international space station, including two Americans. Russia was demanding $100 million to take up the slack. But Congress had barred space-related payments to Moscow unless the administration could certify that the Russians were not transferring banned technology to Iran for nuclear, biological or chemical weapons. Getting the law changed would take time, and could "open up a can of worms" with no guarantee that the result would be to the administration's liking, O'Keefe said.

The vice president's solution, he said, was to get around the law by cutting the deal as a barter. The Russians wouldn't charge the United States for the costs of flying to the space station, and in return, the Americans wouldn't charge the Russians for their share of some operating and equipment costs.

The vice president then took the lead in persuading the State Department to go along with the plan, which never came to public attention. "He helped frame how to do this without a major diplomatic dust-up," O'Keefe said.

[Photo]
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Photo: The president meets with Supreme Court justices on Oct. 3, 2005. A day earlier, Cheney learned, through a Bush aide, that the president had nominated White House counsel Harriet E. Miers for a spot on the court. (AP)

Last year, Cheney was behind another unprecedented and controversial deal that inserted the White House into an ongoing criminal probe.

When the FBI seized files from the office of Rep. William J. Jefferson (D-La.) as part of a bribery investigation, House Republican leaders erupted. With a number of their own members under investigation for other matters, they charged that the search violated the Constitution. They demanded the return of the files.

Cheney quickly gravitated toward the House's position, aides said, but Attorney General Alberto R. Gonzales; his top deputy, Paul J. McNulty; and FBI Director Robert S. Mueller III threatened to resign if forced to hand over evidence they believed had been properly collected under a warrant.

White House Chief of Staff Joshua B. Bolten called a meeting on May 25, 2006, to resolve the political and legal crisis. The president's lawyers and congressional liaison were in the room, and so was Cheney. Once again, it was the vice president who came up with a solution, according to a participant. Cheney's plan met his goal of keeping the files from federal investigators. The files would be placed under seal for 45 days. Within hours of the meeting, Bush made Cheney's recommendation official. As often happens in government, delay was decisive. Jefferson was indicted earlier this month on 16 counts of bribery, racketeering, fraud, money laundering and obstruction of justice. But nearly half of the files remain off-limits, tied up in legal disputes.

Taking Options 'Off the Table'

Cheney's influence is manifested not just in crisis but also through his extraordinary involvement in the daily machinery of the White House.

The vice president chairs a budget review board, a panel the Bush administration created to set spending priorities and serve as arbiter when Cabinet members appeal decisions by White House budget officials. The White House has portrayed the board as a device to keep Bush from wasting time on petty disagreements, but previous administrations have seldom seen Cabinet-level disputes in that light. Cheney's leadership of the panel gives him direct and indirect power over the federal budget -- and over those who must live within it. [Read then-OMB Director Joshua Bolten's memo about the review board.]

Mitchell E. Daniels Jr., who served as Bush's budget director from 2001 to 2003 and is now governor of Indiana, said that during his tenure the number of times a Cabinet official made a direct budget appeal to Bush "was zero," which aides from previous administrations found "stunning," he added.

Daniels said he chalked that track record up to "the respect people had for the vice president." Cabinet members, he said, recognized that if the board didn't agree with them, "then the president wasn't likely to, either."

It is well known that Cheney is usually the last to speak to the president before Bush makes a decision. Less so is his role, to a degree unmatched by his predecessors, in steering debate by weighing in at the lower-level meetings where proposals are born and die.

Cheney, Bolten said, is a vocal participant at a weekly luncheon meeting of Bush's economic team, which gathers without the president. As the most senior official in the room, Cheney receives great deference from Bush's advisers.

Wise officials vet their proposals in advance. White House budget director Rob Portman, for instance, sought Cheney's counsel as he was putting together the budget for the upcoming year, using him as a "sounding board" on issues as varied as defense spending and tax reform.

"He never, ever has said to me, 'Do this.' Never. Which is interesting, because that might be the perception of how he operates," Portman said. "But it is 'What do you think of this?' Well, he's the vice president of the United States -- and obviously I'm interested in his point of view."

Perhaps more important than Cheney's influence in pushing policies is his power to stop them before they reach the Oval Office.

When Edward P. Lazear, chairman of the White House Council of Economic Advisers, broached the idea of limiting the popular mortgage tax deduction, he said he quickly dropped it after Cheney told him it would never fly with Congress. "He's a big timesaver for us in that he takes off the table a lot of things he knows aren't going to go anywhere," Lazear said.

Lazear, who is otherwise known as a fierce advocate for his views, said that he may argue a point with Cheney "for 10 minutes or so" but that in the end he is always convinced. "I can't think of a time when I have thought I was right and the vice president was wrong."

But Cheney is careful to choose which issues deserve his attention, preferring not to dissipate his influence. "Dick Cheney learned early on to say no to things that were peripheral to his primary interests or assignments," said his longtime friend David Gribbin.

Current and former White House officials say that the vice president has largely steered clear of hot-button issues such as stem cell research and Bush's "faith-based" initiative to funnel more federal money to religious groups. He is also savvy enough, they say, to retreat when the president expresses strong personal views.

Cheney sided with conservatives who wanted to urge the Supreme Court to reverse a landmark ruling that permitted affirmative action. But, former officials said, he did not press the case when the president, who as governor of Texas had run a state university system, made it clear that he intended to take a more limited and nuanced legal position.

Word of a Cheney loss seldom leaks, a trait that has further endeared him to Bush -- and that has served to exaggerate his influence. Former Cheney and Bush aides described several domestic policy defeats that never reached public notice.

Cheney shared conservative trepidations about the president's signature education initiative, the No Child Left Behind Act, which gave the federal government more control over K-12 education. He has griped privately to confidants, such as economist and CNBC host Lawrence Kudlow, about the administration's failure to control spending. And in robust internal White House discussions, he raised concerns about the cost of the administration's decision to expand Medicare to include a new multibillion-dollar drug entitlement, but bowed to the political reality that the president had to fulfill a campaign promise.

"At least in my area, he didn't have a 100 percent batting average," said Conda, the former domestic policy adviser.

In each case, however, Cheney was a loyal soldier, instrumental in helping to sell the president's policies on the Hill and to the Republican base.

"Dick once told me that our president is a 'big-government conservative,'" said former senator Phil Gramm (R-Tex.), in a recollection disputed by Cheney's office. "Now, Dick keeps his opinions to himself whenever he disagrees with the administration, as he should. But I believe that Dick is a small-government conservative."

'A Spine Quotient'

When Sen. James M. Jeffords (Vt.) threatened to bolt the GOP during negotiations over the president's 2001 tax package, senior Bush advisers and Republican senators were deeply split over whether to buy him off. It was a momentous decision -- a Jeffords defection would toss the Senate to Democratic control for the first time since 1994.

But in a contentious internal debate, the vice president forcefully argued that the administration should not capitulate by giving Jeffords the billions of dollars in special-education funding he sought, recalled O'Keefe, at the time deputy director of the Office of Management and Budget.

O'Keefe said Cheney argued that the White House should not sacrifice conservative principle in the face of Jeffords's threat by scaling back tax cuts dear to the GOP base in order to create an expensive new mandate. Gramm, who confirmed that account, said there would have been no end to such demands if the president had caved.

"The principle was 'Hell, we can't go around funding programs based on what some individual might do,'" said Gramm, who worked closely with Cheney during the negotiations.

By the end of the critical meeting, O'Keefe said, the divided group presented Cheney's view as the consensus recommendation to the president. Bush's $1.35 trillion tax cut passed, and Jeffords defected as promised.

Such stands by Cheney were not uncommon, said Bolten, the White House chief of staff. Cheney often stepped in if he sensed the administration was softening its commitment to Republican "first principles," Bolten said, and he was "a pretty vigorous voice for holding the line on spending and for holding the line on tax cuts." Longtime Cheney adviser Mary Matalin said the vice president brings a "spine quotient" to internal debates.

Cheney's power derives in part from meticulous preparation paired with a strong will to prevail. He knows what he wants, and as one rival put it, Cheney and his staff are "just ferocious negotiators."

The vice president regularly convenes a kitchen cabinet of diverse outside economic experts, often before the president is about to make a major decision. Members of the group describe a man who enjoys the nitty-gritty of economics, poring over charts of obscure data such as freight-car loadings and quizzing experts on the subtle ways the government can influence the economy.

"With the president it was much shorter. It's 'Marty, what do you think of where we stand today?'" said Martin Feldstein, a Harvard economics professor and the president and chief executive of the National Bureau of Economic Research. "It's also a less technical presentation."

R. Glenn Hubbard, Bush's former chairman of the Council of Economic Advisers, said of Cheney: "I'd have conversations with him that were at a level of detail that those with the president were not."

In the weeks following the attacks of Sept. 11, 2001, as the White House was putting together an economic recovery package, Cheney gathered his kitchen cabinet, frequently interrupting the experts as he furiously jotted notes on a stack of cards embossed with the vice presidential seal. What kind of tax cuts are needed? Cheney wanted to know. How big?

A few days later, Cheney was "on fire" when he met with the president, Cheney's chief of staff, I. Lewis "Scooter" Libby, later told Conda. Cheney had decided that the best way to shake business leaders out of their post-attack paralysis was to let them immediately write off the cost of new plants and equipment. After hearing him out, Bush made Cheney's idea a centerpiece of his plan.

In previous administrations, such initiatives typically have been generated by the Treasury Department or the White House economic team. But Cheney has made the vice president's office a hub of tax policy, enabled by the fact that "this president appears to want to have Treasury take the orders from the White House," said John H. Makin, an economist and an informal Cheney adviser.

All this put Cheney in a position to outflank some of Bush's top advisers, and even his old friend Greenspan, to shape the administration's signature tax package: the 2003 cuts that Cheney sold at the Greenbrier resort in West Virginia.

'The President Made the Call'

As far as Greenspan knew, the vice president agreed with him on the danger of the tax package Bush was contemplating. The Federal Reserve chairman worried that the sheer size of the cuts would drown the federal budget in red ink.

The White House via AP">[Photo]
When Bush met with Alan Greenspan, Cheney was almost always present. Behind the scenes, the vice president took steps to undermine a study the Federal Reserve chairman gave him that could threaten the 2003 tax cuts. AP

Cheney and Greenspan met regularly, far more often than the Fed chief met with Bush, according to interviews and Greenspan's calendar. And when the president did meet with Greenspan, Cheney was nearly always in the room.

The vice president and the Fed chairman had formed a close bond when both served in the Ford administration. The Fed chief saw the vice president as a conduit to a president he did not know nearly as well, someone he could trust to fairly present his views to Bush.

So Greenspan sent Cheney a study by one of the central bank's senior economists showing that big deficits lead to higher long-term interest rates, according to a person with firsthand knowledge. Higher rates, Greenspan believed, would wipe out any short-term benefit from a tax cut.

In subsequent meetings with the Fed chief, Cheney never took issue with the study. What Greenspan did not know was that, behind the scenes, the vice president took steps to undermine an argument that could threaten the big tax cut he favored. Conda, the vice president's aide, said Cheney asked him to critique the study. Conda attached his own memo arguing that the Fed's analytical model was flawed. He said "it wasn't my job to know" what Cheney did with the paperwork, but noted that Greenspan's study did not gain traction inside the White House.

Aside from Greenspan, Cheney had faced down opposition from many of the administration's senior economic voices, including Daniels, Treasury Secretary Paul H. O'Neill and Commerce Secretary Donald L. Evans. They believed that the economy was recovering and that a deep tax cut wasn't needed. Daniels said he worried that it would undermine the GOP message of fiscal discipline.

Cheney, however, pressed his argument that the economy needed a jump-start. He wanted not only to reduce the tax on dividends but also to cut the capital gains tax and accelerate income tax breaks for top earners, according to Daniels, Conda, Hubbard and others. Conda said Cheney subscribed to the view of supply-side economists that when government cuts taxes the economy grows, generating additional tax revenue that largely offsets the losses from lower tax rates.

The standoff came to a head in late November 2002, during a meeting in the Roosevelt Room.

O'Neill continued to oppose the tax cut on grounds that the government was moving toward "fiscal crisis," irritating Cheney. "The vice president really got a sense of where O'Neill was coming from and surmised it was a problem," Conda said. The following month, Cheney would demand O'Neill's resignation.

Bush sided with Cheney on the dividends tax but thought it would be better to eliminate it altogether. The president was cooler on the capital gains tax, according to Conda and others. And having campaigned on a platform of compassionate conservatism, he expressed doubts about giving another income tax break to the wealthiest Americans, particularly because they would benefit the most from the elimination of the dividends tax, Hubbard said.

But by the time Bush publicly announced his tax package on Jan. 7, 2003, Cheney lost on only one major count. The president included no reduction in the tax on capital gains. [Read the legislation: As first introduced in the House | As passed by Congress.]

"There was a question of priorities and how to fit things in," said Karl Rove, Bush's chief political adviser. "And ultimately the president made the call."

It was then that Cheney doubled back at the Greenbrier retreat.

"We were deciding how to proceed," recalled Rep. Adam H. Putnam (Fla.), now the third-ranking Republican in the House. "Are we going to put all our eggs in the dividends basket, or are we going to move on capital gains? As I recall, he was a very strong advocate on both counts, but particularly capital gains in terms of its potential to unleash the economy."

In the end, the House decided against eliminating the dividends tax cut, as Bush had wanted, choosing instead to just reduce the rate to make room for a capital gains cut.

Bill Thomas, the California Republican who guided the final bill to passage as chairman of the House tax-writing committee, said he and Cheney go way back and "use each other in the best sense," with the two men deciding which one will make a proposal and which will speak up in its support.

In the case of the capital gains proposal, Cheney pitched it to the Greenbrier gathering. Thomas pitched it to the White House, and he credited the vice president with persuading Bush to go along. "That," Thomas said, "is why the administration changed its position."

The vote in the Senate was 51 to 50. Cheney, exercising his only formal power under the Constitution, cast the tie-breaking vote.

Staff researcher Julie Tate contributed to this report.

Cheney role as power broker in spotlight again

Caren Bohan
Reuters
Tuesday June 26, 2007

Vice President Dick Cheney was back this week in a place he intensely dislikes: the spotlight.

Cheney's penchant for secrecy and his unprecedented role within the Bush administration have dominated recent White House news briefings, drowning out discussions of everything from Iraq to immigration to the Middle East.

A newspaper series on how Cheney wields his power and his feud with an obscure record-keeping agency have stirred the latest controversies.

Cheney, a master at the Washington power game, is depicted as operating behind the scenes and pushing his hard-line views on issues such as the treatment of terrorism suspects in a four-part series in the Washington Post that began on Sunday.

The series portrays Cheney as bypassing top officials at the State Department, Justice and the National Security Council to gain the upper hand in battles over the handling of terrorism suspects at the military prison at Guantanamo Bay and other issues.

"Cheney and his allies, according to more than two dozen current and former officials, pioneered a novel distinction between forbidden 'torture' and permitted use of 'cruel and inhuman or degrading' methods of questioning," the Post said.

Cheney also is facing scathing criticism from lawmakers for refusing to comply with a record-keeping request from an office in the National Archives.

Democrats accuse the vice president of trying to cast himself as a "fourth branch of government" because of his legal argument in resisting the record-keeping request. His office told the National Archives that it was not an "entity within the executive branch."

"It comes as no surprise that the 'imperial president' and his vice president are once again trying to dodge scrutiny with a ridiculous claim that Dick Cheney is not part of the executive branch of government," said Sen. John Kerry, a Massachusetts Democrat.

Rep. Rahm Emanuel, an Illinois Democrat and a member of the U.S. House of Representatives leadership, proposed cutting funding for Cheney's office unless he clarifies which branch of government he is part of.

Cheney's critics have drawn a link between his resistance to providing the information and his past refusal to disclose the list of participants in his 2001 task force on energy policy.

That dispute ended up in the Supreme Court and Cheney won.

The White House has backed Cheney's insistence that he is exempt from the requirement of providing data to the archives office, although Bush's aides have stopped short of fully embracing his argument that his office is not part of the executive branch.

"I think that that is an interesting constitutional question, and I think that lots of people can debate it," said White House spokeswoman Dana Perino. "I'm not opining on it."

She said, however, that the question about the nature of Cheney's office was not relevant to the flap over the record-keeping request.

The procedures for record-keeping were detailed in an executive order that Bush himself issued and the president never intended for Cheney to be covered by the reporting requirement, Perino said.

Murdoch Has Flattered Communist Party Leaders And Done Business With Their Children

JOSEPH KAHN
NY Times
Tuesday June 26, 2007

Many big companies have sought to break into the Chinese market over the past two decades, but few of them have been as ardent and unrelenting as Rupert Murdoch’s News Corporation.

Mr. Murdoch has flattered Communist Party leaders and done business with their children. His Fox News network helped China’s leading state broadcaster develop a news Web site. He joined hands with the Communist Youth League, a power base in the ruling party, in a risky television venture, his China managers and advisers say.

Mr. Murdoch’s third wife, Wendi, is a mainland Chinese who once worked for his Hong Kong-based satellite broadcaster, Star TV. Her role in managing investments and honing elite connections in China has underscored uncertainties within the Murdoch family about how the family-controlled News Corporation will be run after Mr. Murdoch, 76, retires or dies.

Regulatory barriers and management missteps have thwarted Mr. Murdoch’s hopes of big profits in China. He has said his local business hit a “brick wall” after a bid to corral prime-time broadcasting rights fell apart in 2005, costing him tens of millions of dollars.

But as he seeks to buy Dow Jones, the parent company of The Wall Street Journal, his track record in China has attracted attention less because of profits and losses than for what it shows about his management style.

Mr. Murdoch cooperates closely with China’s censors and state broadcasters, several people who worked for him in China say. He cultivates political ties that he hopes will insulate his business ventures from regulatory interference, these people say.

In speeches and interviews, Mr. Murdoch often supports the policies of Chinese leaders and attacks their critics. A group of China-based reporters for The Journal accused him in a letter to Dow Jones shareholders of “sacrificing journalistic integrity to satisfy personal and political aims,” a charge the News Corporation denies.

His courtship has made him the Chinese leadership’s favorite foreign media baron. He has dined with former President Jiang Zemin in the Zhongnanhai leadership compound in Beijing and repeatedly met other members of the ruling Politburo in Beijing, New York and London. Television channels affiliated with Mr. Murdoch beam more programming into China than any other foreign media group.

“The reality is that the Chinese government is not going to let anything radical happen in media,” says Gary Davey, an Australian who once ran Star TV for Mr. Murdoch. “But we got a lot farther than anyone else did.”

News Corporation officials in Beijing and Hong Kong declined to comment for this article. After The New York Times began a two-part series on Monday about how Mr. Murdoch operates his company, the News Corporation issued a statement:

“News Corp. has consistently cooperated with The New York Times in its coverage of the company. However, the agenda for this unprecedented series is so blatantly designed to further the Times’s commercial self interests — by undermining a direct competitor poised to become an even more formidable competitor — that it would be reckless of us to participate in their malicious assault. Ironically, The Times, by using its news pages to advance its own corporate business agenda, is doing the precise thing they accuse us of doing without any evidence.”

China has never been a make-or-break proposition for the News Corporation, since its operations here represent a small part of the company, which is valued at $68 billion. But Mr. Murdoch pushed for nearly 15 years to create a satellite television network that would cover every major market in the world, including China.

He coveted the $50 billion in ad spending that flows mainly to China’s state-owned news media whose products, even after years of improvements, still reflect propaganda directives as well as consumer demand.

The News Corporation’s competitors in television and film, the Walt Disney Company, Viacom and Time Warner, also had to accommodate Chinese demands as the price of admission to the local market.

But Mr. Murdoch gave more, his associates said.

“The Chinese discovered that Rupert was a real emperor who controlled everything himself,” said H. S. Liu, who oversaw government relations for the News Corporation in China. “His rivals had big, cautious bureaucracies that could not always deliver.”

China has long meant more than business to the Murdoch clan. Mr. Murdoch’s father, Keith, wrote about China as a war correspondent in the 1930s. As a newspaper proprietor in Australia, he collected Ming dynasty porcelain.

When Rupert Murdoch visited Shanghai in 1997, Wendi Deng, then a junior News Corporation employee in Hong Kong, flew up to serve as his translator. Together they explored Shanghai, which was then emerging as a lively center of finance and commerce.

“He was knocked over by the place,” recalled Bruce Dover, a former China manager for Mr. Murdoch, “and by her.” Within two years, Mr. Murdoch had left his second wife, Anna Mann, and married Ms. Deng.

Clawing Back

Mr. Murdoch’s initial foray into China was disastrous. Shortly after he purchased the satellite broadcaster Star TV in Hong Kong for nearly $1 billion in 1993, he made a speech in London that enraged the Chinese leadership.

He said that modern communications technology had “proved an unambiguous threat to totalitarian regimes everywhere.” Star could beam programming to every corner of China, and Murdoch had paid a big premium for the broadcaster for that reason.

Prime Minister Li Peng promptly outlawed private ownership of satellite dishes, which had once proliferated on rooftops. Star TV faced a threat to its viability.

Chinese leaders rebuffed his attempts to apologize in person — a ban that lasted nearly four years. But he sought to placate them. One target was Deng Xiaoping, then retired but still China’s senior leader.

HarperCollins, Mr. Murdoch’s book unit, published a biography of Mr. Deng written by his daughter, Deng Rong. Although it mainly recycled propaganda about Mr. Deng, Mr. Murdoch threw an elaborate book party at Le Cirque in New York. The book sold poorly.

He also cultivated ties with Mr. Deng’s eldest son, Deng Pufang, who is disabled. Mr. Murdoch chartered a jet to ferry a troop of disabled acrobats that the younger Mr. Deng had promoted to perform abroad, according to a former News Corporation official.

Star TV overhauled its programming to suit Chinese tastes. In 1994 it dropped BBC News, which had frequently angered Chinese officials with its reports on mainland affairs.

Mr. Murdoch said the decision was made for business reasons, not political reasons. Mr. Davey, who then ran Star TV, agreed that cost was a primary consideration.

But he said he had pressed the British broadcaster to stop showing a video of a man facing down a tank outside Tiananmen Square — an indelible image from China’s crackdown on pro-democracy protesters in 1989 — during its on-air programming breaks. He said the BBC refused, calling the video a “journalistic presentation.”

“The BBC never got the sensitivities of the situation,” Mr. Davey said. “It was relentless and stupid. Neither party was too upset about ending the relationship.”

If Star was a potential threat to the one-party state, it was also a new opportunity. Chinese officials disliked Western news media coverage of China and wanted to present their own face to the world. Mr. Murdoch provided the access they wanted.

In 1996, he entered a joint venture with Liu Changle, a onetime radio host for the People’s Liberation Army who had connections with propaganda officials. Their joint news and entertainment channel, called Phoenix, beamed programs to the small number of urban households permitted to see foreign broadcasts in China. Mr. Murdoch transmitted the same programming around the world on his satellites.

Phoenix imitated the fast pace and on-the-scene reporting style popular in the West and shook up the mainland’s staid news media, which still featured well-coiffed narrators reading scripts about meetings between senior leaders held that day. But Phoenix also tended to steer clear of the most sensitive political topics and could be bombastically nationalistic.

Phoenix may have demonstrated that the Chinese news media could become more sophisticated and dynamic without threatening the party’s power. It also showed that Mr. Murdoch could be an asset.

“Officials realized he had a good intentions,” Mr. Liu said.

After Phoenix proved a hit, Ding Guangen, a hard-liner who exercised sweeping control over all Chinese news media as chief of the country’s Propaganda Department, granted Mr. Murdoch his first meeting. So did Zhu Rongji, then the prime minister.

Mr. Zhu noted that Mr. Murdoch had become an American citizen to comply with television ownership rules in the United States. He joked that if he wanted to broadcast more in China, he should consider becoming Chinese, a person who attended the meeting recalled.

Friendly Relations

The News Corporation’s outreach intensified. When Mr. Murdoch learned that China Central Television, known as CCTV, was struggling to develop a news Web site, he dispatched a team from Fox News to help design and operate one. Another News Corporation team brought People’s Daily, the mouthpiece of the Communist Party, online.

China also needed help encrypting satellite transmissions so it could develop a pay-TV service, a specialty of the News Corporation’s NDS subsidiary. NDS helped Beijing create a proprietary encryption system. It never realized sizable royalties, people who worked at the News Corporation said.

Similarly, the company brought delegations of Chinese officials to Britain, so they could study how Mr. Murdoch’s BSkyB unit had become a lucrative gateway for satellite television in Europe.

“Our thinking was that we would show off our technology and they would contract News Corporation to do the same for them,” said Mr. Dover, Mr. Murdoch’s former China manager. “Their thinking was, ‘We want this for ourselves.’ ”

“It ended being more of a giveaway,” Mr. Dover said.

In late 1998, President Jiang invited Mr. Murdoch to Zhongnanhai. The official Xinhua news agency, reporting on the session, made clear that the media baron had a new reputation.

“President Jiang expressed appreciation for the efforts made by world media mogul Rupert Murdoch in presenting China objectively and cooperating with the Chinese press over the last two years,” Xinhua said.

The Murdochs often echoed the Chinese government line. In a 1999 interview with Vanity Fair, Mr. Murdoch spoke disparagingly of the Dalai Lama, whom the Chinese condemn as a separatist. “I have heard cynics who say he is a very political old monk shuffling around in Gucci shoes,” he said.

James Murdoch, who ran Star TV from 2000 to 2003, said in a speech in Los Angeles in 2001 that Western reporters in China supported “destabilizing forces” that are “very, very dangerous for the Chinese government.” He lashed out at the Falun Gong spiritual sect, which had just endured brutal repression in China, calling it “dangerous and apocalyptic.”

The Journal won a Pulitzer Prize for its coverage of the suppression of the Falun Gong movement in 2001. Last month, seven China-based reporters for The Journal wrote a letter to Dow Jones’s current controlling shareholders arguing that the articles on Falun Gong “may never have seen the light of day” if The Journal had been owned by Mr. Murdoch.

News Corporation officials say such fears are baseless. While several reporters who worked in China for the company’s publications in the 1990s say Mr. Murdoch’s editors pressed them to tone down their coverage of delicate issues that could anger the Chinese leadership, reporters serving in such posts now say they have not come under similar pressures.

By the late 1990s, Mr. Murdoch was traveling several times a year to the country. He was often joined by Wendi Murdoch, who left her formal position in the company but continued to scout for investments in China and participate in strategy decisions there, several people who worked for the News Corporation said.

One of her roles: introducing her husband to Chinese entrepreneurs. Many of them had received business degrees in the United States, as she had at Yale.

The Murdochs invested about $150 million in half a dozen start-up Internet and telecom companies at the height of the Internet bubble between 1999 and 2001. Only one, Netcom, returned an appreciable investment profit, two former News Corporation executives said.

But one of the entrepreneurs the Murdochs befriended during the investment spree was Jiang Mianheng, the son of President Jiang. Ms. Murdoch and some other News Corporation employees argued internally that the younger Mr. Jiang could help Star distribute its broadcasts more widely, two former News Corporation executives said.

It is unclear what role, if any, Mr. Jiang played. But in 2002, the company became the first foreign broadcaster to receive “landing rights” to sell programs to cable systems in Guangdong Province, near Hong Kong.

The license came with a catch. The News Corporation again consented to transmit Chinese programs — this time, the English-language news, talk shows and cultural shows on CCTV’s Channel 9 — to the United States and Britain. Time Warner later agreed to similar terms. But the market appeared to be opening, with the News Corporation in the lead.

Prime Time

The News Corporation and its joint venture partners controlled 9 of the 31 foreign channels, including news, movies, music videos and sports, more than any other foreign media company. Officially, however, it could still reach only government and foreign compounds and luxury hotels, as well as homes in Guangdong. Mr. Murdoch wanted more.

Good news appeared to come in 2004. The authorities began allowing Chinese-foreign joint ventures to produce shows that could be broadcast locally without the restrictions that apply to overseas content.

Mr. Murdoch interpreted the order liberally. The News Corporation allied itself with a state-run broadcaster in the western province of Qinghai. The arrangement covered not only production but also distribution. Through middlemen, the News Corporation also purchased prime-time slots in 25 Chinese provinces. It had become a backdoor national broadcaster.

Aware that the venture pushed the limits of what regulators allowed, the News Corporation sought to arrange political cover, people involved in arranging the deal said. It recruited a media and stock market entrepreneur named Ding Yuchen to join the venture as a partner. Mr. Ding’s father, Ding Guangen, was the longtime propaganda chief. A second partner was the Central Committee of the Communist Youth League, considered the political power base of China’s new top leader, Hu Jintao.

In comments to News Corporation investors in early 2005, Mr. Murdoch boasted of a “new venture,” which he did not name, “where we’ll have nearly 50 percent of a prime-time channel, which will have access to well over 100 million homes.”

It did not endure. The News Corporation used Qinghai to broadcast branded shows it had produced for its own, more limited channel. When they began appearing nationally, competitors complained that Mr. Murdoch was getting special treatment.

The Propaganda Department forced the News Corporation to end its involvement with Qinghai shortly thereafter. The cost of the debacle: between $30 million and $60 million, people connected to the company at the time said.

News Corporation executives said they felt the political winds had shifted against them. President Jiang, who retired from his final post as military chief in 2004, had lost much of his day-to-day influence. President Hu’s propaganda team pulled in the reins. Mr. Murdoch said publicly that he had hit a “brick wall.”

Mr. Liu, Mr. Murdoch’s partner at Phoenix, said the Qinghai venture “is not something I would have tried” because it ran afoul of media regulations. But he said Mr. Murdoch had not lost the good will of senior officials. “They still recognize his contributions,” he said.

When Mr. Murdoch visited China late last year, he met Liu Yunshan, Mr. Ding’s successor as propaganda chief, and Liu Qi, the party secretary of Beijing and the top coordinator for the 2008 Olympics.

The News Corporation also entered an alliance with China Mobile, the state-owned company that is the world’s largest mobile communications operator. Mr. Liu of Phoenix said the move “could open a new, lucrative highway” to provide media content to China’s 480 million mobile-phone users.

Wendi Murdoch has stepped up her role in China. She plotted a strategy for the News Corporation’s social networking site, MySpace, to enter the Chinese market, people involved with the company said. The News Corporation decided to license the MySpace name to a local consortium of investors organized by Ms. Murdoch.

As a local venture, MySpace China, which began operations in the spring, abides by domestic censorship laws and the “self discipline” regime that governs proprietors of Chinese Web sites. Every page on the site has a link allowing users or monitors to “report inappropriate information” to the authorities. Microsoft, Google and Yahoo have made similar accommodations for their Web sites in China.

The Murdochs will soon be able to call Beijing home. Workers have nearly finished renovating their traditional courtyard-style house in Beijing’s exclusive Beichizi district, a block from the Forbidden City. Beneath the steep-pitched roofs and wooden eaves of freshly coated vermillion and gold, the courtyard has an underground swimming pool and billiard room, according to people who have seen the design.

Plainclothes security officers linger on the street outside. One neighbor is the retired prime minister, Mr. Zhu, who invited Mr. Murdoch to become Chinese.

Feinstein might push for fairness doctrine

JOSEPH KAHN
UPI
Tuesday June 26, 2007

U.S. Sen. Diane Feinstein, D-Calif., said Sunday she is "looking at" the possibility of reviving the fairness doctrine for U.S. broadcasters.

Feinstein, speaking on "Fox News Sunday" with Sen. Trent Lott, R-Miss., said talk radio in particular has presented a one-sided view of immigration reform legislation being considered by the Senate.

U.S. talk radio is dominated by conservative voices.

"This is a very complicated bill," said Feinstein. "Most people don't know what's in this bill. Therefore, to just have one or two things dramatized and taken out of context, such as the word amnesty -- we have a silent amnesty right now, but nobody goes into that. Nobody goes into the flaws of our broken system."

Feinstein said the measure before the Senate "fixes those flaws" but that doesn't get presented on talk radio, which she said "pushes people to ... extreme views without a lot of information."

Asked if she would revive the fairness doctrine, which used to require broadcasters to present competing sides of controversial issues, Feinstein said she was "looking at it."

"I remember when there was a fairness doctrine," she said, "and I think there was much more serious correct reporting to people."

High Schoolers Get In Bush's Face About Torture

Newshounds
Tuesday June 26, 2007

Yesterday, President George Bush thought he was going to a typical White House East Room photo op with this year's Presidential Scholars after which he planned to give a rah-rah speech in favor of the renewal of No Child Left Behind. Little did he know that the Scholars had a little surprise prepared for him. Prior to entering the room, they handed him a letter signed by 50 of their number asking that he treat the detainees in Guantanamo Bay humanely. Can you say courageous? The President was caught off guard, but he read the letter and guaranteed the young people that the United States does not mistreat its prisoners. (!) With video.

In a world where many adults think it's just fine to poke fun at teenagers or rake them over the coals for being stupid, lazy and mercenary, it feels good to report that those silly adults have got it all wrong. As we News Hounds have learned in the past few weeks, high school students bravely and successfully faced down the vicious and bombastic Bill O'Reilly. And now they have exercised their rights as Americans to personally address their President.

We want to applaud these young people for having the guts to do what the adults who surround the President have been unwilling or unable to do for the past six years, i.e., tell him the truth to his face.

Here are the official White House photos of some of these high school heroes whom we view as the the hope of the future.

In his remarks the President said "... This is a program that honors high school seniors for exceptional academic and artistic achievements. Past winners have gone on to win the Pulitzer Prize, succeed at the highest levels of business, work here at the White House. This afternoon we honor a new class of promising young men and women. Your fellow scholars have pursued groundbreaking research, written scholarly papers, and performed at Carnegie Hall. Many of you have also reached out to those in need, and have given your time for causes greater than any individual need. And for that we thank you.

They also demonstrated that they have what it takes to speak truth to power!

Anderson Cooper covered this story on his show (video below).

So far, FOX News has ignored it. Surprise, surprise!