Ciller's favorite Kriegel wins new exclusive contract

PART I

WASHINGTON- Lobbying is like spying in that your successes need to remain closely guarded secrets. But when it comes to the current state of Turkey's lobbying effort in the United States, there are no secrets... It is in dire straits.

In this month of April, when the Armenian-Americans are gearing up to make a major push in the Congress to pass the "Armenian Genocide" resolution, Turkey is not represented by any lobby firms in Washington. And the only firm hired by the Turkish Foreign Ministry works out of New York City, unfortunately not quite on talking terms with the Turkish Embassy in Washington, and busy placing one call after another to the European capitals trying to ease Turkey's way into the European Union.

Until May 1996, the Turkish Embassy utilized the services of two firms registered as "Foreign Agents" with the U.S. Department of Justice: Capitoline for government relations; and Fleishman Hillard, for public affairs, media relations and grassroots outreach. In the great political uncertainty that witnessed the collapse of the Motherland Party (ANAP) and True Path Party (DYP) coalition and the birth of the Welfare Party (RP)-DYP coalition, something happened that was to shape the current "consultancy vacuum" in Washington: the Prime Ministry Promotion Board did not meet for a whole year, for reasons still not clear.No Board, no contract

The Promotion Board, headed by the Prime Minister, consists of representatives from the ministries of Culture, Tourism, Foreign Affairs, as well as from the National Security Council, the Turkish Radio and Television organization, and the General Directorate of Press and Information. Among its duties is authorization of the consultancy firms to represent Turkey abroad. If the Board does not meet, no lobby firms get their contracts renewed. At least in theory that's the way it works.October 31

Capitoline and Fleishman Hillard were chosen by then Prime Minister Tansu Ciller in 1994 when the previous firm, Hill & Knowlton, could not get her the media attention she wanted during her first trip as Prime Minister to Washington in October 1993.

In 1996, if it had been up to the Embassy, it would have continued its work with these two companies since apparently it was pleased with the recent work both firms produced. To support that assertion let's mention the fact that both companies' annual fees, which were cut roughly by $100,000 by Ambassador. Kandemir during the 1995-96 period, were increased by $100,000 and restored to their 1994-95 levels in 1996. To give an example, Capitoline, for example, was paid $650,000 in 1994; $550,000 in 1995; and back to the $650,000 rate in 1996.

But during the political chaos of much of 1996 the Board in Ankara wouldn't meet and both companies' contract could not be renewed. And so the Embassy let it be known that it could not guarantee payments after a certain period. The cutoff date was October 31. After that date the firms could not be guaranteed any payments although they were not encouraged to cut off their ties with the Embassy either. The firms decided to hang in there, hoping the Board would meet sometime thereafter and things would revert to normal.Late, but paid

Both Capitoline and Fleishman Hillard continued their "contact" with the Embassy, if not active work, through March 1997. In March, following State Minister Abdullah Gul's Washington visit, Capitoline was paid $325,000 for the May 1 -- Oct. 31 period, reflecting an annual fee of $650,000. Fleishman Hillard, which was to be paid $1,650,000 a year if the contract was renewed, was paid $962,500 for the seven months it served between April 1 and Oct. 31.Firms invited

Currently, both firms have effectively stopped working on behalf of Turkey. After Abdullah Gul returned to Ankara, at least ten firms were asked to submit proposals for a new round of evaluation to pick up one or two "new" firms to represent Turkey in America. Among them were Capitoline and Fleishman Hillard as well. Some observers point to the contradiction involved in inviting to a new round of selection the very same firms whose performance was deemed less than satisfactory by Gul.

Hill & Knowlton is a third company that was asked to submit a proposal although, again, it was the very same entity that had to take the full brunt of Ciller's wrath in 1994 and lose its long-held contract. What is different this time around at Hill & Knowlton is the presence of Thomas Buckmaster, a Fleishman Hillard old-timer and ex-partner who handled the Turkish account between 1994-96 and jumped ship afterwards.

Burston Marsteller, which was hired in New York City as a communications consultant last year during the Habitat II conference in Istanbul, is invited again this year to submit a proposal.

The fifth lobby company invited to submit a proposal is the London-based Schendwick, which maintains a relatively small presence in Washington but reportedly has a considerable weight in Europe.And the winner is...

While these companies are gearing up to compete against one another for the coveted prize, one other company already ran away with a lucrative one-year contract: Abernathy MacGregor of New York City. And the only reason the company got the contract is its principal, Jay Kriegel, the former CBS senior Vice President who became Tansu Ciller's favorite media consultant in June 1994.

Kriegel agreed to provide "strategic advice and counsel" to the Turkish Foreign Ministry "regarding communications issues and programs and to assist with the development of an overall communications project in the United States and Europe."

He reports to Ambassador Ugurtan Akinci (former Turkish ambassador to Canada) at the Foreign Ministry, Director General for External Promotion, who in turn reports to Deputy Undersecretary Ambassador Murat Sungar (former ambassador to India). Above them both are Undersecretary Ambassador Onur Oymen, and Foreign Minister Tansu Ciller.Kriegel's track

Kriegel, an East-Coast-Establishment attorney with the right schooling (Amherst and Harvard Law School) and the proper Democratic Party networking, was known as an effective if somewhat in-your-face "operator" by friends and foes alike. The story of how, of all the thousands of "media consultants" available in the United States, the quick-witted and quick-tongued Kriegel came to be picked by Ciller is not clear.

Some sources claim Kriegel's name was mentioned to Tansu and Ozer Ciller during a party in Istanbul by Bob Squires, another high-level Democratic Party operator who provided campaign strategy to Ciller during the elections.

Other sources mentioned other names such as Henry Kissinger, or ABC anchor Peter Jennings, as the person who allegedly put in a good word for Kriegel with the Cillers back in 1994. Kriegel himself would not volunteer to clear up the fog on grounds of confidentiality of information concerning his client.

Regardless of the true circumstances surrounding the initiation of his employment, we know that Kriegel did start working for Tansu Ciller in 1994, although he insists that he always worked for "the Prime Ministry" and never for any particular person.

We have to say that Kriegel, who provided answers to some of the TDN questions for this article and left others yet unanswered due to his busy schedule, is probably one of the very few who believe in such an assessment. In 1996, for example, when Ciller lost the prime ministry and became Deputy Prime Minister and Foreign Minister in the RP-DYP coalition government, Kriegel also quit working for the prime ministry and signed a new contract with the "Ministry of Foreign Affairs." The way his contract followed Ciller from the Prime Ministry to the Foreign Ministry looks like more than a sheer coincidence.$1.5 million in 3 years

Whether Kriegel works personally for Ciller or not, the job has been good to him especially when, by his own admittance, the Turkish account is not the only one he devotes his precious time and considerable energies to.

Here are the contract periods and the amounts paid to Kriegel by the Turkish Government, and with the full blessings of Tansu Ciller:

1) June 30, 1994 -- Dec. 31, 1994: $154,500.00

2) Jan. 1, 1995 -- Jan. 30, 1995: $300,800.00

3) July 1, 1995 -- Dec. 31, 1995: $499,232.49

4) Jan. 1, 1996 -- June 30, 1996: $250,000.00

5) Sept. 1, 1996 -- Dec. 31, 1996: $180,000.00

6) Jan. 1, 1997 -- March 31, 1997: $135,000.00

His contract for 1997 is good through Dec. 31, 1997. Kriegel will be paid $135,000 on a quarterly basis, money wires transferred directly to a bank on Park Avenue in New York City. Kriegel's total for 1997 will ultimately reach $540,000.

The grand total paid to Kriegel since June 30, 1994 has reached $1,519,532.49.

One is tempted to explain the apparent break in Kriegel's otherwise continuous service record between July and September 1996 by the uncertainty that accompanied Ciller's "transfer" from one coalition government to another. It seems that when the ANAP-DYP coalition collapsed in May 1996, it took a while for Mrs. Ciller to consolidate a new position for herself in the RP-DYP coalition. Once it was clear that she would head the Ministry of Foreign Affairs, Kriegel's contract was also shifted from the Prime Ministry (now controlled by Necmettin Erbakan) to the Foreign Ministry. But then, again, perhaps that could also be explained by sheer coincidence of the elements.Expenses

The next question is, how much of Kriegel's income went to expenses? By law, all "Foreign Agents" registering as such with the U.S. Justice Department must file all the expenses that they do incur while working on behalf of their clients. Kriegel did file his expenses but perhaps rather reluctantly. While the other consulting firms that the Turkish Embassy employed filed multi-pages-long expense reports which accounted for even taxi fares down to the last red penny, Kriegel's expense reports usually included only one large lump-sum category: "Out-of-pocket expenses."

In 1994, Kriegel did itemize his expenses in the following categories: Travel ($4,976); Press Clips (none); News Watch (none); Copies/FAX ($154); and Out-of-Pocket Expenses ($1,168); for a total of $6,298. But beginning with Jan. 1995, all his itemized deduction categories either show "zero" dollars, or not listed at all (as in 1996), except the Out-of-Pocket Expenses category. Thus we have no detailed idea what Kriegel has spent and for what purpose while serving the Turkish Government -- which of course cannot be taken by any means as an indication that the monies were misspent. But, by the same token, the lack of the necessary details unfortunately prohibits any outside observer from appreciating the efficacy with which Mr. Kriegel apparently did serve his client. Yes, we do think that Ciller believes Kriegel served Turkey's best interests effectively -- otherwise one can't explain why his contract would be renewed smoothly every time.

Having said all that, the out-of-pocket expenses that Kriegel has reported are as follows:

1) June 30, 1994 -- Dec. 31, 1994: $6,298 (includes Travel and Copies/FAX).

2) Jan. 1, 1995 -- Jan. 30, 1995: $10,691.36.

3) July 1, 1995 -- Dec. 31, 1995: $161,341.59.

4) Jan. 1, 1996 -- June 30, 1996: $5,037.66.

5) Sept. 1, 1996 -- Dec. 31, 1996: $56,597.91.

The grand total Kriegel has spent on behalf of the Turkish government since June 1994 is $239,966.52.

The contract stipulates that Abernathy MacGregor (AMG) "will be responsible for ordinary and predictable administrative, travel, and other out-of-pocket expenses incurred under this contract."

Thus, AMG seems to have made a maximum of $1,279,566 on the Turkish account since June 1994. The real amount might be less than this when "ordinary and predictable administrative costs" are deducted as well.

That, of course, in itself does not say anything about whether Abernathy MacGregor (which also had Scanlon as a third partner until he resigned due to questions raised for the work he did for the tobacco industry) earned "too much" or "too little" while serving Ankara. To be able to even begin to make such an assessment we have to examine in detail what Kriegel agreed to do for the Turkish government -- a subject we'll take up in Part II.

Turkish lobbying faces uncertain times in America

Part II

Washington- Let's begin a closer look at what Jay Kriegel, the Turkish government's only existing lobbyist in the United States, has promised to do since 1994. But before this, let's point out to the fact that Kriegel's contract was not renewed through the same process that other lobbying firms are subject to in Ankara.Perhaps that's why Turkish Embassy officials in Washington were reluctant to comment on any aspect of Kriegel's activities.Same client, different recruitment policies

All the lobby companies, as we explained in Part I of this analysis, must be approved by the Prime Ministry's Promotion Board before they can represent the Turkish government abroad. The reason that, for example, previously-hired firms such as Capitoline and Fleishman Hillard did not manage to get their contracts renewed last year was that the Promotion Board was unable to hold meetings to vote on the issue, according to official Turkish sources.

Since Kriegel's contract was renewed without fail, this means his contract did not require the board's approval. Then who exactly did approve his contract and payments? We don't know, and Mr. Kriegel wouldn't say either, shielding himself behind client confidentiality. But it's hard to avoid the conclusion -- until it is explained otherwise -- that there are two different processes involved in hiring public relations consultants for the same government. Embassy cut off

Such multiple lines of authority does not bode well for the future of Turkey's lobbying efforts, when a unified "chain of command" and accountability is needed more than ever. Kriegel's contract says ,"We will take our instructions from you (the Foreign Ministry ,or MFA) or from whoever else the MFA designates." But in the United States Kriegel does not take instructions -- or was he perhaps not requested to do so? -- from the Turkish Embassy in Washington, the highest designated authority representing Ankara in America. Overlapping functions

If Kriegel's activities were mutually exclusive of the interests pursued by the embassy that would be one thing. But some of Kriegel's activities do overlap with those delegated to the other companies working for the embassy.

The contract with Fleishman Hillard, for example, said the company would "promote the image and interests of the government of Turkey within the United States through a program of public outreach, media relations and general public relations."Kriegel's contract reads, "We will assist in the preparation of various materials, including press releases and speeches, and the use of various media techniques..."

There is certainly an overlapping of duties right there. The question remains why the embassy, which controls the media efforts of one lobby company, could not supervise the similar efforts of another consultant hired by the same state apparatus that embassy is also working under? Mr. Kriegel does not have an answer besides stating the obvious, that he does not work for the embassy but for the ministry in Ankara.

Thus, one needs to look elsewhere to explain the embassy's general lack input on Kriegel's activities, which we believe is not due to a lack of interest or ability on the embassy's part but to the shifting political currents in Ankara which are driving Turkey's American lobbying effort along forked paths.One-man government abroad

Let's stress here that not all of Kriegel's activities overlap with those of other consultants. As a matter of fact, most of his functions do not overlap since they are as varied as the number of foreign policy complications Turkey faces.

A look at what Kriegel's contract covers is enough to suggest that he is, in effect, expected to cover a space of ground that would exhaust any other mere mortal:

1. European Union relations: Kriegel is expected to provide "support for Turkey's efforts to implement the customs union agreement and to strengthen relations with the European Union (EU) and its member countries, including support for Turkey's application for full EU membership and advocating Turkey's interests during the Intergovernmental Conference (IGC)."

2. Pipeline: Kriegel will be "generating support for multiple pipeline routes to transport Caspian Sea oil and the specific proposals submitted by Turkey to the AIOC (Azerbaijan International Operating Company), its member companies and interested governments for the Western route to Supsa for early oil and the major Ceyhan pipeline."

3. Trade and investment: Kriegel is expected to bolster "efforts to improve international trade and private investment in Turkey by European and American companies, including promoting opportunities in Turkey and Turkey's competitive advantages to target markets and industries."

4. Terrorism: Kriegel will support "Turkey's fight against the PKK (Kurdistan Workers' Party) and Turkey's campaign to win international support of efforts to combat terrorism and to deny support to the PKK."

5. Human rights: Kriegel, says the contract, will be "presenting the fundamental strengths and elements of individual rights and basic freedoms (press, religion) and open political and legal systems, Turkey's historic record in support of human rights and the ongoing efforts to improve human rights."

If you think this is a breathtaking load for one man to carry alone, that's not all. Let's recall that Kriegel is also expected to:

6. Assist in preparation of various press releases and speeches, videos, brochures, research projects and White Papers,

7. "To bring leading journalists, businessmen and legislators from the United States and Europe to visit Turkey on an ongoing basis", and

8. To coordinate "ongoing worldwide communications activities as conducted by the various consulting firms working for the government."Paid too little?

One observer in Washington said that if Kriegel could deliver all these as promised then he is actually being paid too little and that he should perhaps be paid $15 million by now instead of just a million-and-a-half.

Kriegel's response is that he is, of course, not working on all these areas simultaneously but in a consequential fashion, as dictated by the current needs of the ministry in Ankara. Results?

Now for the tricky part. The question remains what exactly the Turkish government got from Mr. Kriegel in return for paying him to receive "strategic advice and counsel regarding communications issues and programs and to (have Kriegel) assist with the development of overall communications project in the United States and Europe."

The definite answer will not be known until both Mr. Kriegel and Mrs. Ciller, or Foreign Ministry officials, volunteer the details necessary for a realistic appreciation of the vast responsibilities delegated to Abernathy MacGregor in such crucial foreign policy areas.

But we might perhaps try to arrive at an aggregate assessment, on the basis of conjectural evidence by looking at what happened in some of the contract areas mentioned above. Since these items were mentioned in his earlier contracts as well, we believe we are justified in considering that Kriegel has been working on these issues since June 1994, and not January 1997.Aggregate assessment

European Union:

It is true that Turkey has entered the customs union and that Kriegel had the responsibility to assist Turkey in this regard, although Mr. Kriegel, as an attorney well versed in such matters, adamantly denies -- from a legal/technical point of view -- that he was "responsible" for anything under his contract. Be that as it may, is it not fair to ask what Kriegel's exact contribution to Turkey's customs union admittance was?

When one talks to State Department veterans like Undersecretary for Economic Affairs Stu Eizenstat or former Assistant Secretary for European and Canadian Affairs Dick Holbrooke, it is hard not to take note of the pride and credit these gentlemen take for their claim to have worked so hard to push Turkey into the customs union. Independent sources confirm that without the State Department's all-out effort in Europe on behalf of Ankara, the miracle would not have been realized.

Yet, given the total "radio silence" Kriegel maintains on the issue, it is hard to know how much credit to attribute to him for Turkey's joining. One has to assume that he must have worked in close cooperation with State Department officials and the U.S. embassies in Europe, as well as all the Turkish embassies involved, for they played a crucial role in the process.

One should also be reminded of the severe rebukes Turkey had to endure recently when Germany and some other European actors revealed their reluctance to accept Turkey into the EU as a full member. At an aggregate level, this certainly does not sound like a "mission accomplished" on the part of anyone working for the Turkish government.Pipeline:

AIOC President Terry Adams made it clear in Washington this past February that the oil pipelines would not go through Turkey, an announcement which did not surprise those observers who had stressed all along that Russia's interests weigh much heavier in this matter than do those of Turkey. Could Kriegel do anything to create a "communications environment" to convince the AIOC otherwise? Or is he still working on this issue? It's hard to tell one way or the other, unless Kriegel chooses to address the issue in detail.Human rights:

It is true that the Turkish government has taken some positive steps in the past year to reduce detention periods and provide legal representation for suspects during such periods. Such developments in the human rights arena have been noticed by a number of advocacy groups in the West and acknowledged in public forums. So, to the extent that he worked on it we have to admit that Mr. Kriegel might have some positive input in that media process.

Yet, just a week earlier there had been yet another hearing in Congress on "Torture in Turkey" held by the Helsinki Commission, where the Human Rights Watch's new report on torture in Turkey was introduced to the press. So, in all fairness, one must also admit that efforts on the human rights front have not been too successful as far as Turkey's Congressional critics are concerned.

Coordination of other consultants' communication efforts was another item in Kriegel's job description. Currently, the issue is purely "academic" as far as the United States is concerned, since there are no remaining companies connected to activities which Kriegel can "coordinate." Positive but not needed

Concerning his past efforts along this line, an industry insider told TDN that Kriegel had "some involvement" in coordination which was "more positive than negative."

But, the insider added that such an effort was "needed less in the United States and more in Europe." Only Mrs. Ciller knows why a Europe-based consultant was not chosen to coordinate Turkey's global communication projects.Media:

Kriegel should be commended if he had anything to do with the establishment of a New York Times bureau in Istanbul. The bureau chief Stephen Kinzer really catapulted Turkey's coverage to an entirely new level with his frequent and well-researched stories from all over Turkey. On Sunday, April 14, for example, he perhaps broke a NYT record by having four of his Turkish stories published in the same issue. Yet Kinzer's unflattering front-page story on corruption allegations directed at Ciller must have given Kriegel major heartburn.Trade and investment:

Regardless of what Kriegel did or did not do in this regard, Turkey is no longer even mentioned among the "big emerging markets." Does Mr. Kriegel really have the time to develop Turkey's investment image in the United States? We doubt it. What, for example, Kriegel is doing to counter the effects of a U.S. trade representative suit filed with the World Trade Organization concerning the alleged "discrimination" of American movies in Turkey? We don't know.Kriegel's rule

Kriegel has a "rule" which was quoted in an Esquire story on America's top "spin masters." This rule postulates that "any individual action today has multiple consequences for multiple audiences, any or all of which might be taking action of their own..."

In the troubled world of Turkish lobbying in United States with its multiple lines of authority and accountability, Kriegel's motto is automatically elevated to the status of a self-fulfilling prophecy. This is the last thing Turkey needs right now.

Kriegel: 'UN is responsible for PKK presence in N. Iraq'

Ankara- Pro-Turkish lobbyist Jay Kriegel, who is reportedly very close to Tansu Ciller, has claimed that the reason for the Kurdistan Workers' Party (PKK) presence in northern Iraq was "United Nations policies" which had led to the creation of a no-man's land.

Jay Kriegel is currently the official advisor to the Turkish Foreign Ministry.

His company Abernathy, Mc Gregor & Scanlon prepared and presented to Murat Ersavci, Nihat Akyol and Uluc Ozulker what is known as the "white papers," one of which outlined "the facts" for the purposes of foreign journalists, members of the European Parliament and European business leaders visiting Turkey under the Forum Europe Program. The document dated late 1995 consisted of eight parts that included information about the PKK, its origins and objectives.

In the section, "The Turkish operation against the PKK in northern Iraq," the document discussed the PKK presence in northern Iraq in the following terms: "The PKK's use of northern Iraq is a result of the Gulf War and the U.N. policy that denies the Iraqi government access to this region but has created no alternative security system. The result has been a lawless no-man's land with no government responsible for safety and security."Finance from the Arab world

The Arab world was also accused of supporting the PKK; "Without foreign backing and finance from the Arab world, as well as the illicit revenues from the drug trade in Europe, the PKK would not survive," the document stated.

According to Kriegel's company, more than half of those arrested in all drug trafficking incidents in Europe since 1991 have been affiliated with the PKK.

Although the report did not explicitly mention Greece, it was implied: "Turkey's ability to defeat the PKK is constantly undermined by the continuing funding and assistance offered by foreign countries, including unprecedented support by a NATO member aiding a terrorist organization attacking a fellow NATO ally."Turkish citizens of Kurdish origin

It was also stated that several of Turkey's leading officials were of Kurdish origin, as were cabinet ministers and generals. Turks of Kurdish origin enjoy full citizenship in Turkey and participate in all aspects of political, economic and social life. Over 100 of Turkey's deputies in the Turkish Parliament are of Kurdish origin, the statement said.