The Wall Street Journal - 14.11.2019

(C. Jardin) #1

THE WALL STREET JOURNAL. ***** Thursday, November 14, 2019 |A


WORLD NEWS


President Trump spoke during a news conference with Turkish President Recep Tayyip Erdogan at the White House on Wednesday.

EVAN VUCCI/ASSOCIATED PRESS

dogan.
When Sen. Ted Cruz (R.,
Texas) expressed concern over
the plight of the Kurds, it
prompted a lengthy response
from Mr. Erdogan who sought
to school him and his col-
leagues on the difference be-
tween Kurds and what he
called terrorists.
Rep. Eliot Engel (D., N.Y.),
chairman of the House Foreign
Affairs Committee, called the
White House decision to hold
the meeting a mistake and
said Mr. Trump “let Turkey off
the hook for invading Syria,
causing a mass exodus of
Kurds, and purchasing the
S-400 missile system from
Russia.”

nist who chided Mr. Trump for
U.S. ties to Mr. Abdi, the Kurd-
ish commander seen by Tur-
key as a violent opponent. Mr.
Erdogan stood stoically as Mr.
Trump first fielded the ques-
tion, then asked the columnist:
“Are you sure you don’t work
for Turkey, with that ques-
tion?”
Sen. Lindsey Graham (R.,
S.C.), a critic of Mr. Erdogan,
turned to reporters sitting be-
hind him in the East Room and
commented: “There aren’t any
others left.”
Earlier Wednesday, Mr.
Trump had invited reporters
into the Oval Office for a few
minutes as lawmakers arrived
for their meeting with Mr. Er-

“causing massive displacement
of the residents, in clear viola-
tion of the ceasefire agree-
ment.”
The visit on Wednesday
centered on personal dynam-
ics. The last time Mr. Erdogan
came to the White House, he
and Mr. Trump delivered joint
statements, but took no ques-
tions from reporters. Wednes-
day’s event involved more fan-
fare, including an East Room
press conference, attended by
dignitaries and several Repub-
lican senators. Mr. Trump in-
vited Mr. Erdogan to call on a
member of the Turkish media,
advising he select “a friendly
reporter from Turkey.” Mr. Er-
dogan picked a Turkish colum-

Countering America’s Adver-
saries Through Sanctions Act
over the S-400 purchase.
On fighting in Syria, Mr.
Trump asserted that the
cease-fire in northern Syria
was holding. An agreement
negotiated by Vice President
Mike Pence last month called
for Syrian Kurds to pull back
from the border area and for
Turkey to stop its military ad-
vance. But that statement was
challenged by Mazloum Abdi,
the commander of the Kurd-
ish-led SDF, who said in a
Twitter post after an initial
Trump-Erdogan meeting
Wednesday that Turkish forces
had launched attacks on the
Syrian town of Tal Tamar,

ahead of Wednesday’s meet-
ing, insisting that “continued
dialogue” was as important as
achieving results.
The Pentagon has said the
Russian S-400 could be used
by the Kremlin to gather intel-
ligence on the U.S.’s stealthy
new F-35 jet fighters. After
Turkey went ahead with its
purchase from Russia, the U.S.
said it was withholding sales
of the jets to Turkey. The U.S.
also suspended Ankara’s role
in the production program, a
costly move for Turkish com-
panies that have manufactured
more than 900 parts for the
plane. U.S. officials have ex-
plored a compromise in which
Turkey would keep the S-
system but not operate it, thus
enabling the U.S. to sell the
planes to Ankara and restore
its participation in the F-
program. But Mr. Erdogan
gave no indication in his pub-
lic remarks that he would ac-
cept such an arrangement. Mr.
Trump said only that there
were “lots of options” to re-
solve the dispute.
Despite calls from Congress
for tough action, Mr. Trump
has held back from imposing
sanctions under the 2017

A long-awaited meeting be-
tween President Trump and
Turkey’s leader ended
Wednesday without a resolu-
tion of key issues on which the
two sides have been divided,
including Ankara’s purchase of
a Russian air-defense system
and the U.S. partnership with
the Kurdish-led Syrian Demo-
cratic Forces.
The chemistry between Mr.
Trump and Turkish President
Recep Tayyip Erdogan domi-
nated the visit. Mr. Trump vol-
unteered that he was a “big
fan” of Mr. Erdogan. The Turk-
ish leader called for a new
chapter in relations between
the two countries.
But there was no indication
of headway on Turkey’s pur-
chase of the sophisticated
S-400 air-defense missile sys-
tem from Russia, which has
been a major concern for the
Pentagon, or on other issues
that have led to a deteriorat-
ing view of the North Atlantic
Treaty Organization ally
among most U.S. lawmakers.
Administration officials
tried to lower expectations


BYVIVIANSALAMA
ANDMICHAELR.GORDON


Trump-Erdogan


Meeting Yields


Little Progress


ernment of Turkey in a variety
of matters over the years, in-
cluding federal litigation. But
we are proscribed from com-
menting on this matter due to
the attorney-client privilege.”
The law firm also represents
Turkey’s government in civil
lawsuits brought by individuals
who say they were attacked by
members of Mr. Erdogan’s se-
curity detail while demonstrat-
ing peacefully during the Turk-
ish president’s last visit to
Washington in May 2017.
The documents reviewed by
the Journal include dozens of
pages that denote authorship
by Saltzman & Evinch, as well
as some material profiling sus-
pected Gulenists in the U.S.
that is of uncertain origin.
None of the material suggests
that covert surveillance opera-
tions or electronic hacking of
the groups and individuals
was conducted.
The law firm’s report pro-
files five senior staff members
of Virginia International Uni-
versity, based in Fairfax, Va.,
as well as nine people at the
Washington-based Rumi Fo-
rum, which says its mission is
“to foster intercultural dia-
logue” and is openly associ-
ated with Mr. Gulen. The re-
port also contains information
regarding two Turkish-Ameri-
can organizations and five

other individuals.
An individual formerly as-
sociated with VIU who was
named in the report declined
to comment. A senior VIU offi-
cial didn’t respond to a re-
quest to comment.
The Rumi Forum’s chief ex-
ecutive officer, Mustafa Akpi-
nar, said it was upsetting to
be included in the report, de-
spite his public association
with Mr. Gulen. Mr. Akpinar,
who said he is a U.S. citizen,
said he fears the added expo-
sure could mean that relatives
may be questioned and that
associates in Turkey may
avoid contact with him.
At the same time, Mr. Akpi-
nar said there is nothing nega-
tive in his background. “I have
nothing to hide,” he said.
“They are wasting Turkish peo-
ple’s money, taxpayers’ money.”
Another person profiled in
the report said he was no lon-
ger part of the Gulen move-
ment, having broken with the
group in 2017 because he was
unconvinced by Mr. Gulen’s de-
nials of involvement in the coup
attempt against Mr. Erdogan.
He said he was upset to learn
he was in the law firm’s report,
adding: “I am a U.S. citizen and
I didn’t do anything wrong.”
Mr. Gulen, a former Erdo-
gan ally, has been a legal resi-
dent of the U.S. since 2008.

FROM PAGE ONE


WASHINGTON—Turkey’s
government used a Washington
law firm to gather information
about its critics, including resi-
dents of the U.S., who it be-
lieved were allied with a move-
ment that President Recep
Tayyip Erdogan regards as a
central enemy, according to
documents reviewed by The
Wall Street Journal.
The information, gathered
at the behest of the Turkish
Embassy in Washington, was
transmitted to public prosecu-
tors in Turkey, according to
two Turkish government mem-
orandums marked “secret.”
Activists said they fear the
data is being used in investi-
gations of Mr. Erdogan’s per-
ceived adversaries.
The documents underscore
Ankara’s intense antipathy to-
ward individuals and groups it
sees associated with Fethullah
Gulen, a cleric who leads a
world-wide, moderate Islamic
movement from exile in rural
Pennsylvania.
Mr. Erdogan, who met with
President Trump at the White
House on Wednesday, said he
was presenting additional doc-
umentation to support Tur-
key’s demand that Mr. Gulen
be extradited to Turkey, accus-
ing the cleric of being behind


a 2016 coup attempt against
the president. U.S. officials
have said Ankara hasn’t pro-
vided sufficient proof of Mr.
Gulen’s involvement, and Mr.
Gulen denies having played
any role in the matter.
Since the coup attempt, more
than 600,000 investigations
have been opened by Turkey
into people considered members
of movements such as Mr. Gu-
len’s, the State Department said
earlier this year in its annual re-
port on human rights. More
than 80,000 people have been
imprisoned in conditions where
problems included “suspicious
deaths of persons in custody;
forced disappearances; torture”
and other rights concerns, the
State Department said.
Turkish diplomatic posts
world-wide are tasked with
gathering information on sus-
pected Gulenists, particularly in
Western Europe, where millions
of people of Turkish origin live,
said Aykan Erdemir, a former
opposition member in Turkey’s
parliament, now a senior fellow
at the Foundation for Defense
of Democracies think tank.
To gather information on
Mr. Gulen’s suspected follow-
ers in the U.S., the Turkish
Embassy in 2017 turned to a
Washington law firm, Saltz-
man & Evinch PLLC, which has
long represented Ankara’s in-

terests in the U.S.
The lengthy report the firm
compiled, drawn from public
databases, social media and
other open-source informa-
tion, was transmitted to Tur-
key’s Foreign and Justice min-
istries and from there to
public prosecutors in Ankara,
Istanbul and elsewhere in Tur-
key, the documents show.
In a secret Aug. 2, 2017,
memo transmitting the report
to Ankara’s chief public prose-
cutor, a senior official in Tur-
key’s Justice Ministry said:
“The attached examples are
presented in case they are
seen fit to be evaluated for in-

vestigations related to FETO,”
the Turkish government’s
name for the Gulen movement,
which it considers a terrorist
organization. The memo was
signed by a senior Justice
Ministry official.
Abdullah Bozkurt, a Turkish
journalist and Erdogan critic
who came across the docu-
ments, said in an email that
research by a monitoring in-
stitute he heads in Stockholm
showed that the information
gathered by the embassy had
already been “used in criminal
prosecutions against people
named in the report and it be-
came part of criminal evidence
in various case files.”
Mr. Bozkurt said he based
his assertions on other official
government documents he has
obtained and shared with the
Journal. The Journal couldn’t
determine which if any of the
Turkish investigations have
been based on the material
provided by the U.S. law firm.
The Turkish Embassy de-
clined to comment. The govern-
ment has repeatedly said Mr.
Gulen’s group is a threat to its
national security and involved
in illegal activities around the
world, including in the U.S.
David Saltzman, a principal
in Saltzman & Evinch, said in a
statement: “As is widely known,
we have represented the gov-

BYWARRENP.STROBEL


Turkey Gathered Information in the U.S. on Its Critics


The effort centered on alleged
backers of cleric Fethullah Gulen.

SASHA MASLOV FOR THE WALL STREET JOURNAL

mobile-banking apps.
Google flirted with financial
services in the past. In 2011, it
launched Google Wallet, where
users could digitally store
their existing credit and debit
cards to make purchases. In
2015, it explored ways to use
email to pay bills.
Alphabet Inc., Google’s par-
ent company, has been trying
to boost usage of Google Pay,
which competes with similar
payment apps from Apple,
Samsung Electronics Co. and
Facebook, which this week in-
troduced its own payments
service across its apps.
Google Pay is on track to
have 100 million users world-
wide in 2020, up from 39 mil-
lion in 2018, according to esti-
mates from Juniper Research.
Apple Pay had about 140 mil-
lion users last year, according
to the research firm.
Banks are trying to figure
out when to work with tech
companies and when to com-
pete against them. Both Citi-
group and Stanford Federal
Credit Union, Google’s other
partner on the Cache project,
could bring in deposits and es-
tablish relationships with
younger, tech-savvy savers
who might one day need a
mortgage or credit card.
Anand Selva, who heads
Citigroup’s U.S. consumer
bank, said digital partnerships
like the one with Google would
let the bank grow beyond its
bricks-and-mortar network.
“We have to be where our cus-
tomers are,” he said.

Wall Street Journal. And
Google will leave the financial
plumbing and compliance to
the banks—activities it
couldn’t do without a license
anyway. “Our approach is go-
ing to be to partner deeply
with banks and the financial
system,” Google executive
Caesar Sengupta said in an in-
terview. “It may be the slightly
longer path, but it’s more sus-
tainable.”
Google is setting its sights
fairly low. Checking accounts
are a commoditized product,
and people don’t switch very
often. But they contain a trea-
sure trove of information, in-
cluding how much money peo-
ple make, where they shop and
what bills they pay.
The company will have to
convince a public that is in-
creasingly wary of how tech
companies are using personal
data that it can be trusted
with people's finances. Federal
regulators are examining
whether the user information
Google gets from its search
engine, home speakers, email
service and other apps gives
the company an unfair advan-
tage over competitors, the


Continued from Page One


Google


Eyes Push


In Finance


Journal has reported.
Mr. Sengupta said Google
wouldn’t sell checking-account
users’ financial data. Consum-
ers would access their check-
ing accounts through Google’s
digital wallet, Google Pay. The
company said it doesn’t use
Google Pay data for advertis-
ing purposes and doesn’t
share that data with advertis-
ers.
Fifty-eight percent of peo-
ple recently surveyed by con-
sulting firm McKinsey & Co.
said they would trust financial
products from Google. That
was better than Apple and
Facebook but worse than Ama-
zon.
“If we can help more people

do more stuff in a digital way
online, it’s good for the inter-
net and good for us,” Mr. Sen-
gupta said.
He said Google hadn’t de-
cided whether the checking
accounts would charge fees.
Banks sometimes charge fees
to some customers who carry
smaller balances or don’t use
their debit cards often.
Big banks already are facing
competition from technology
upstarts, especially among
millennial, mobile-first cus-
tomers. Money-transfer ser-
vices Venmo and Cash App are
rolling out debit cards. Chime
Financial Inc. and Revolut Ltd.
have scored billion-dollar val-
uations on the backs of their

$

Googleplanstooffer
checkingaccounts
fromCitigroupanda
smallCaliforniacredit
union.

Applehaspartnered
withGoldmanSachs
toissuecreditcards
foriPhoneuserson
theApplePayservice.

Uberoffersbank
accountswith special
perkstoitsdrivers
throughGreenDot,a
smallbank.

Somerecentcollaborations
betweenbigtechcompanies
andbanks

Percentageofconsumerswho
saidtheywouldtrusteach
companytohandletheir
finances
65%
58
56
35

Amazon
Google
Apple
Facebook

Numberofdigital-walletusers

39million

51

140

100

100

227

Google
Pay
Samsung
Pay

Apple
Pay

2018estimate
2020projection

TechMoney


Sources: the companies (partnerships); McKinsey & Co. (consumer trust); Juniper Research
estimates and projections (digital-wallet users)

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