Financial Times Europe - 07.10.2019

(Steven Felgate) #1

2 ★ FINANCIAL TIMES Monday7 October 2019


I N T E R N AT I O N A L


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A I M E W I L L I A M S —WASHINGTON


A second whistleblower has come for-
ward with informationon Donald
Trump’s dealings with Ukraine as the
US president faces an impeachment
probe andgrowing uneasein the GOP.
Mark Zaid, an attorney specialising in
national security issues, told US news
channel ABC that the second whistle-
blower had first-hand knowledge of the
allegations set out against Mr Trump
and his officials inthecomplaint t thea


centre of the impeachment probe.
On Twitter, Mr Zaidsaid the second
person had made “a protected disclo-
sure under law”, and “cannot be retali-
ated against”. Mr Trump has called for
the identity of the first whistleblower to
be revealed. Andrew Bakaj, an ttorneya
who represents the original whistle-
blower,wrote on Twitter that his firm
represents “multiple whistleblowers in
connection to the underlying August 12,
2019, disclosure to the Intelligence Com-
munity Inspector General”.
The originalwhistleblower statement
alleged that Mr Trump had pressured
Ukrainian president Volodymyr Zelen-
sky to investigateMr Trump’srival,Joe
Biden, and the business dealings of his

son Hunter. Officials then used a classi-
fied storage system to hide a transcript
of a call between Mr Trump and Mr Zel-
ensky, the whistleblowerclaimed.

A second complaint from an intelli-
gence official couldadd credibility to
the original allegations t a time whena
Mr Trump is being investigated by
House Democrats nd faces uneasea
from within his ownparty.

The president hascome under fire
from some Republicans after he sug-
gested on Thursday that Beijing could
investigate Mr Biden and his son’s busi-
nessin China. Susan Collins, theSenator
for Maine, said: “I thought the president
made a big mistake by asking China to
get involved in investigating a political
opponent.”
Ben Sasse, a Nebraskasenatorseen as
a presidential contender,criticised Mr
Trump’s appeal toChina ni the Omaha
World-Herald newspaper.Texanlaw-
maker Will Hurd said the appeal to a US
“adversary” was “terrible”.
But most Republicans are refusing, at
least publicly, to criticise the president.
Speaking on ABC on Sunday, Jim Jordan,

the top Republican on the House over-
sight committee — one of the three com-
mittees leading the impeachment probe
— defended Mr Trump’s remarks on
China, sayinghe had been “tougher on
China than any other president”.
Democrats leading the impeachment
inquiry on Friday issued subpoenas for
documents to the White House. Mike
Pompeo, US secretary of state, and Rudy
Giuliani, the president’s personal law-
yer, have also received subpoenas.
House committees ave released texth
messagesbetween three US diplomats
showingthey offered Mr Zelensky a
White House meeting with Mr Trump
onconditionhelooked into the Bidens.
Editorial Comment age 16p

Impeachment inquiry


Second whistleblower comes forward


White House under


pressure as Republicans


start to express unease


D E M E T R I S E VA STO P U LO— WASHINGTON
A N D L AU R E N F E D O R— SAN FRANCISCO


Joe Biden came out swinging at Donald
Trump at the weekend, accusing the
president of spreading “flat-out lies”
with a conspiracy theory about his son
thatis at the heart of the impeachment
inquiry.
“He is frantically pushing flat-out lies,
debunked conspiracy theories and
smears against me and my family, no
doubt hoping to undermine my
candidacy for the presidency,” the
former vice-president wrote in the
Washington Post.
Mr Biden was responding after Mr
Trump urged Beijing to find dirt on his
son Hunter Biden’s business dealings in
China — mirroring a request to his
Ukrainian counterpart in theJuly 25
phone call that sparked the“Ukraine-
gate” investigation n Capitol Hill.o
Mr Trump claims Mr Biden pushed
Ukraineto fire a top prosecutor ho wasw
investigating a Ukrainian gas company,
Burisma, on whose board Hunter Biden
sat. US, European and other interna-
tional officials have all dismissed the
charges as a debunked conspiracy.
However, Mr Biden faces a conun-
drum. He does not want to fuel the
claims by responding blow by blow. But
he knows that not rebutting the charges
could be dangerous, given how Hillary
Clinton seemed to suffer by not defend-
ing herself more forcefully in the 2016
presidential campaign.
A Biden adviser said the campaign
was being “incredibly aggressive” in
responding to the charges in the media,
precisely because of the way the 2016
race had unfolded. “We are aware of
how the media covered a lot of the 2016
Hillary storyline that resulted in an
unhelpful false equivalence, and we are
determined not to let that happen.”
He said one silver lining was that Mr
Biden was getting more media coverage
than his Democratic rivals. “It elevates
vice-president Biden in a way that
makes him the primary protagonist and
sucks up a lot of oxygen in the room.”
But the attacks come at a pivotal
moment, as Mr Biden, 76, starts to look
vulnerable. After holding a sizeable lead


president. David Ignatius, a Washington
Post columnist, wrote that he had
shown “poor udgment” in allowing thatj
perception to exist, and that “denying
this obvious fact only weakens the Dem-
ocrats’ case against Trump”.
Geoff Garin, a Democratic pollster,
said it was unclear if the Ukraine affair
would hurt or help. “On the one hand,
Biden could use all of this aggressively to
confirm that he is the candidate who
Trump is most afraid of, to highlight his
strength as the most electable candi-
date,” said Mr Garin. “On the other
hand, the constantly repeated descrip-
tions of Hunter Biden’s involvement in
Ukraine could raise red flags and wor-
ries for Democratic voters.”
In the meantime, Mr Biden made
clear to Mr Trump in his Washington
Post article that he would not leave any
blows unreturned. “You won’t destroy
me, and you won’t destroy my family.
And come November 2020, I intend to
beat you like a drum,” he said.

JA M E S P O L I T I —WASHINGTON

Donald Trump’s public call forChina ot
investigate the Biden family has added
complexity o trade talks with Beijing,t
possibly jeopardising efforts to reach
even a limited commercial ceasefire
between the world’s largest economies.

Liu He, China’s vice-premier, is due in
Washingtonthis weekfor discussions
with Steven Mnuchin, the US Treasury
secretary, and Robert Lighthizer, the US
trade representative, in an attempt to
reach a truce aftertariff escalations over
recent months. If no agreement is
reached, levies on $250bn of Chinese
imports will rise from 25 per cent to 30
per cent on October 15,inflicting a new
blow on both economies.
The run-up to the meetings has been
overshadowed by the impeachment
inquiry that is gripping Mr Trump’s
presidency. The probe centres around
Mr Trump’s efforts to persuade Ukraine
to investigate Hunter Biden, the son of
former US vice-president Joe Biden, a
top contender for the 2020 Democratic
presidential nomination, over his busi-
ness in the country.
On Thursday, as Mr Trump sought to
defend the pressure campaign mounted
by his administration onUkraine vero
the issue, the US president asked Beijing
to investigate Hunter Biden’s dealings in
China as well. By Friday, Mr Trump
insisted that his demand for a Biden
investigation had “nothing to do” with
the trade talks, although the damage
might have already been done.
“A pall of deep suspicion has envel-
oped the talks before they have even
started,” said one person briefed on the
negotiations in Washington. “A mini-
deal isn’t off the table, but a likely weak
set of outcomes for the US is now all the
more suspect,” the person added.
Democrats arepouncing on any possi-
ble concessions, or watered-down pro-
visions, that Trump administration offi-
cials might agree to, and raising ques-
tions about what the US president
earned in return.
Officials in both countries had been
hoping to make progress on an agree-
ment that would involve higher US farm
purchases by Chinese state-owned com-
panies, some greater openness to US
investment in China, in areas such as
financial services, and some measures
to rein in intellectual property theft.
The US, in turn, would agree to at the
very least hold off on higher tariffs, and
possibly roll back some existing ones.
But this would fall far short of a com-
prehensive agreement to permanently
reset US trade relations with China and
curb many of the trade practices, from
forced technology transfer to rampant
industrial subsidies and discrimination
against foreign companies, that have
strained elations with Washington.r
Some close followers of US-China
relations say the impeachment inquiry
against Mr Trump and his demand for
an investigation by Beijing of a top
domestic political rival did not funda-
mentally change the reality that the two
sides are still far apart on many issues.
“There are already a lot of obstacles to
a major deal, let alone a small one,” said
Scott Kennedy of the Center for Strate-
gic and International Studies.
The Chinese government and state-
controlled media did not respond
immediately to Mr Trump’s comments.
Additional reporting by Sun Yu in Beijing

Tariff war


Call for China


to probe US


contender


clouds talks


Election 2020. emocratic raceD


Biden goes on attack over Trump’s ‘flat-out lies’


Presidential hopeful faces


conundrum on how best to


deal with corruption claims


not to engage on the substance but
instead stress that the charges had been
debunked. “What Joe Biden should say
is that every media outlet that looked at
this... found no ounce of corruption.
The more he talks about it, the more he
seems to elevate it on the same level as
the charges against Trump.”
In his Washington Post article, Mr
Biden did not mention his son by name,
or address the allegations. At a recent
campaign event in Iowa, he snapped at a
Fox News reporter who asked if had spo-
ken to his son abouthis Ukraine work.
Pointing his finger at the reporter, Mr
Biden said: “You should be asking him
the question, why is he on the phone
with a foreign leader, trying to intimi-
date a foreign leader... Everybody
who has looked at it has said there is
nothing there. Ask the right questions!”
But the problem for Mr Biden may be
less the conspiracy theory and more the
perception that his son may have
profited because his father was vice-

in the polls of likely Democratic pri-
mary voters, he has suddenly found sen-
ator Elizabeth Warren on his shoulder.
And the recent hospitalisation of Bernie
Sanders after the 78-year-old Vermont
senator had a heart attack has reignited
questions about Mr Biden’s age.
According to an average of recent
polls compiled by Real Clear Politics, Mr
Biden leads Ms Warren by 26 to 24 per
cent. But she has overtaken him in the
past two national polls, and has the
overall lead in Iowa. She is alsomaking
ground in South Carolina, an early vot-
ing state where he has his biggest lead,
and is tantalisingly close in California.
The Biden adviser said he had his
second-best fundraising haul in the
week the CIA whistleblower accused Mr
Trump of inappropriately pressuring
the Ukrainian leader. But he raised only
$15m in the third quarter, $9m less than
Ms Warren and $10m less than Mr
Sanders. However, Ed Rendell, a former
Pennsylvania governor, urged his friend

Joe Biden does
not want to fuel
allegations
over his son’s
business
dealings by
responding blow
by blow to
comments — but
he knows that
not rebutting
the charges
forcefully could
backfire on
his campaign
Mario Tama/Getty Images

‘You won’t
destroy

me, and
you won’t

destroy
my family.

And come
November

2020, I
intend to

beat you
like a drum’

‘The president made


a big mistake by asking
China to get involved’

Susan Collins, Republican Senator

M I L E S J O H N S O N —ROME

Over the past 20 years, thousands of
Italian students have headed to Rome’s
LinkCampus,aprivateuniversityclose
to the Vatican, to study courses as
diverse as film and luxury fashion
management.

But in recent days, the palazzo that is
home to the obscure Italian university,
and the Italian capital itself have
become bit players in a complex web of
accusations of international spycraft,
intrigue and conspiracy.
The US impeachment inquiry into
President Donald Trump and the long-
running allegations of Russian interfer-
ence in the US 2016 elections have
renewed attention on Joseph Mifsud, a
missing Maltese professor and a former
member of Link staff.
With a visitby US secretary of state
Mike Pompeo in recent days and ne byo
the US attorney-general last month in
search of answers over Mr Mifsud,
Rome’s role as an intelligence hub and
the university itself have been in the
spotlight.
Link, established in 1999 as a Roman

outpost of the University of Malta, has
close ties to the world of Italian espio-
nage, cultivated through its president,
the former Italian foreign minister Vin-
cenzo Scotti, and a masters programme
in intelligence that has attracted speak-
ers from secret servicesacross the
world. It also has links with key mem-
bers of the ruling Five Star party.
Former defence secretary Elisabetta
Trenta lectures on some of its courses.
“I know from my experience there
they have a good working relationship
with Italian intelligence agencies,” said

Stephen Marin, a former CIA agent and
director of the intelligence analysis
programme at James Madison Univer-
sity, who has lectured at the Link Cam-
pus.
About 2,500 students attend the
university each year. “The masters
programme was set up as part of an
effort to develop knowledge to serve the
Italian defence and intelligence infra-
structure. My impression was that the
students are a mix of people, some with
no prior knowledge of the area and also
some working professionals,” he said.
It is unclear exactly how Mr Mifsud
fitted in. He has beenmissing since 2017
and has been accused of informing the
then Trump campaign aide George
Papadopoulos that Russia had hacked
emails from Democratic presidential
candidate Hillary Clinton’s server.
Some Trump allies have in turn
accused Mr Mifsud of being a western
intelligence plant intended to compro-
mise the president’s election campaign.
They say he was involved in a “deep
state” campaign to smear Mr Trump for
conspiring with Russia.
Mr Papadopoulos wrote hat he wast

“an Italian operative handled by the
CIA”. Mr Mifsud has in the past denied
the allegations made against him.
William Barr, US attorney-general,
was last week revealed to have made
two visits this year to the Italian capital,
where he was reported by Italian media
to have met with domestic intelligence
officials as part of an effort to investigate
the sources of the Russia investigation.
In a meeting in September, Mr Barr
was accompanied to Italy by US attor-
ney John Durham, who is leading Mr
Barr’s counter-intelligence investiga-
tion into possible foreign intelligence
activity directed against Mr Trump.
Their focus was Mr Mifsud. The Italian
government has not yet commented on
Mr Barr’s visit to Italy.
Mr Scotti, Link’s president, declined
to comment on Mr Mifsud via a spokes-
man. Link Campus said in a statement
that Mr Mifsud was not a full academic
at the university and had only taught
there in 2015 and 2016.
The university has robustly rejected
allegations from Mr Papadopoulos that
Link had tried to frame him by luring
Mr Papadopoulos to the university.

Intelligence links


Rome emerges as hub of intrigue in Ukraine affair


Joseph Mifsud, a former Link staff
member, has been missing since 2017

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OCTOBER 7 2019 Section:World Time: 10/20196/ - 18:48 User:elizabeth.durno Page Name:WORLD1 USA, Part,Page,Edition:EUR, 2, 1

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