The Tactics of a Leveraged Investment

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In a previous post entitled "The Uses of a Holocaust-Arms Sales" we noted that the release of Hollywood Holocaust productions are timed to achieve specific political purposes. In this particular case, to defeat arms sales to Arab countries.

In the next post entitled "The Uses of a Holocaust-Israel Aid" we examined the resources that the United States Government has provided to the state of Israel over the past 45 years.

In that post, we asked what would happen to this ongoing aid stream if the Holocaust story were suddenly disbelieved.

In the next post entitled "The Uses of a Holocaust-Resettlement Aid" we examined the lobbying tactics undertaken when an Israel aid package ran into political trouble because its purpose, the resettlement of jews in the occupied Arab lands, was unpopular in the United States.

In the next post entitled "The Uses of a Holocaust-Fundraising" we examined the role the Holocaust plays in motivating jews to contribute to charitable and political causes.

In these prior posts, we described the Holocaust as a leveraged investment. It is used to raise money, which then is applied in the political system to win a hundred times the amount spent on political contributions in U.S. aid to Israel.

Hence the word "leverage".

In this post, we will look at some specific tactics and organizations that dispense the political money that keeps this leveraged investment going.

Follow the money flows and you will arrive at the truth!

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[June 24, 1987 Wall Street Journal p1 c6]

Linked Donations?

Political Contributions From Pro-Israel PACs Suggest Coordination

Groups' Leadership Overlaps With That of AIPAC, A Lobbying Organization

It Denies a Linkup in Giving

By JOHN J. FIALKA staff reporter of THE WALL STREET JOURNAL.

WASHINGTON -- When Idaho Senate candidate John V. Evans decided he needed to raise big out-of-state money for his race last year, he went to the American Israel Public Affairs Committee, or AIPAC, one of Washington's most powerful lobbying organizations. Despite the initials in its name, "AIPAC emphasized constantly that they were not a PAC (political action committee)," which gives money to candidates, says Mr. Evans, a Democrat and former governor. "But they noted that there were Jewish organizations all over the country that had their own PACs and that if we would contact them, they would be able to help us."

Indeed, AIPAC did much better than an ordinary PAC could do for Mr. Evans. By federal law, a PAC is limited to a maximum contribution of $5,000 per race, and groups that coordinate their spending are counted as one PAC under this limit. But AIPAC steered Mr. Evans to a series of supposedly independent organizations-- many of them run by people with ties to AIPAC- that gave him $204,950 for his losing race against Republican Sen. Steve Symms.

According to a computer-aided analysis of 1986 Federal Election Commission reports, despite AIPAC's claims of non-involvement in political spending, no fewer than 51 pro-Israel PACs-most of which draw money from Jewish donors and operate under obscure- sounding names-are operated by AIPAC officials or people who hold seats on AIPAC's two major policymaking bodies. The study shows that 80 pro-Israel PACs spent more than $6.9 million during the 1986 campaigns, making them the nation's biggest-giving, narrow issue interest group.

The analysis shows that three of seven "regional chairpersons" a AIPAC direct PACs and 26 more PAC chairmen or treasurers sit on AIPAC's 131-member executive committee, which meets four times a year and sets overall lobbying strategy. Twenty-two more PAC leaders hold seats on a second, advisory body, the 200-member national council.

Similar Spending Patterns

While the pro-Israel PACs represent diverse and supposedly bipartisan Jewish communities in almost every major city and region in the country, their spending patterns are remarkably similar. For example, of $3.9 million given directly to candidates, the pro-Israel PACs focused their power on three Senate races, spending $642,000 on Democrats in South Dakota, Idaho and California. In these races, only one $5,000 donation went to a Republican.

AIPAC leaders, including its executive director, Thomas A. Dine, refused repeated requests for interviews on the group's relationship with the pro-Israel PACs. Reading from a prepared statement, an AIPAC spokeswoman says the group "denies most forcefully that any such (spending) coordination occurs," and insists that the interlock with pro-Israel PAC leaders "is a function of the nature of political activism and in no way connotes affiliation or connection."

But the overlaps between the organization and the pro-Israel PACs begin at the top. For instance, the Los Angeles-based Citizens Organized Political Action Committee was founded by the wife of AIPAC's chairman, Lawrence J. Weinberg. And Citizens Concerned for the National Interest, located in Chicago, was started by Robert H. Asher, AIPAC's president. Neither could be reached for comment.

* * *

The race that experienced the biggest influx of pro-Israel PAC money was the Senate race in South Dakota, where Democratic Rep. Thomas Daschle's successful campaign received $229,480. The PACs and people associated with them spent another $91,000 to help the state's Democratic Party finance an unprecedentedly lavish get- out-the-vote drive, including computerized voter lists, statewide phone banks and paid operatives who scoured remote Indian reservations for Democrats needing a ride to the polls.

The effort on behalf of Mr. Daschle infuriated Stanford M. Adelstein, a Rapid City developer, a former AIPAC executive committee member-and a Republican. "I'm angry. I really, in a sense, gave up on AIPAC," says Mr. Adelstein, who estimates that half of the state's 150 Jewish families are Republican.

Mr. Adelstein says he went to great lengths to get Jewish contributors to listen to incumbent GOP Sen. James Abdnor, and he helped arrange the senator's mid-campaign trip to Israel, where Mr. Abdnor promised to soften his long-held stand against all foreign aid. But Mr. Abdnor was unsuccessful in stemming the flow of funds to his opponent.

Mr. Abdnor wasn't the only target of pro-Israel money to visit Israel last year. Mr. Zschau and Sen. Symms also made trips there and had warm praise for Israeli leaders and their prospects for future U.S. aid. The pro-Israel PAC money, however, went almost unanimously against them.

* * *

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[June 24, 1987 Wall Street Journal p1 c6]

Anti-Zionist's Candidacy Was Helped By Jewish Contributors in California

By JOHN J. FIALKA

Staff Reporter of THE WALL STREET JOURNAL

LOS ANGELES-Edward B. Vallens, a 67-year-old retired contractor, is an avowed anti-Zionist. Just how he wound up with $120,000--much of it from Jewish contributors-to stage a television blitz in the final hours of the 1986 California Senate race still bothers him.

The $120,000 might seem like a small amount in a race that consumed $24 million and is believed to be the most expensive Senate race in history. But it is part of a larger story that might have affected the outcome of the close, bitter race between Democratic Sen. Alan Cranston and his unsuccessful GOP challenger, then-Rep. Edwin Zschau.

A key figure in the story appears to be Michael Goland, a Los Angeles developer who is one of the largest donors to the American Israel Public Affairs Committee and who has been active in opposing candidates he views as being unfriendly to Israel. He recently agreed to pay a $5,000 fine for his role in running television commercials attacking former GOP Sen. Charles Percy of Illinois in Mr. Percy's losing 1984 race; the commercials were illegal because the source of the financing wasn't disclosed.

Mr. Goland, who couldn't be reached for comment, surfaced in the California race at a May 1986 reception for Mr. Zschau held by Jewish supporters in Los Angeles's San Fernando Valley. According to the accounts of both Mr. Zschau and campaign manager Ron Smith, he confronted the candidate and, in Mr. Smith's words, "said, 'I'm going to get you just like I got Percy.' "

A few weeks later, Mark Barnes, the operator of a Los Angeles political consulting firm, was approached to produce and buy time for a television ad for Mr. Vallens, the Senate candidate of the American Independent Party. Mr. Barnes says he can't divulge who his clients were. About that time, Libertarian Party candidate Rreck McKinley says he received a call from Mr. Barnes, who said he represented some potential contributors. Mr. McKinley says that when he pressed for more information, Mr. Barnes said he was working on behalf of Mr. Goland. Mr. Barnes confirms that he called Mr. McKinley but denies mentioning Mr. Goland's name. Mr. McKinley says he rejected the offer.

Mr. Vallens says that in mid-October, as his campaign struggled along with a few thousand dollars, he received a call from Mr. Barnes promising $120,000 from "very conservative Republicans who don't want Zschau in there." Mr. Vallens was told to go to a Los Angeles television studio, where he made commercials asserting that he, and not Mr. Zschau, was the only real conservative in the race.

The commercials ran at least 60 times on Los Angeles and San Diego stations in the final hours before the election. Mr. Vallens, hitherto a political unknown, got 109,856 votes. Mr. Smith claims the ads siphoned off Zschau votes and depressed voter turnout in heavily Republican Orange County. Mr. Zschau lost the election by 116,000 votes.

The Los Angeles Times found two of the donors worked for companies controlled by Mr. Goland and another who lived in a house that is owned by Mr. Goland. One $4,000 check came from Mr. and Mrs. Michael Altman. Mr. Altman says he is a close friend of Mr. Goland's and that he is treasurer of Young Americans Political Action Committee, a pro-Israel PAC of which Mr. Goland is assistant treasurer.

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