Pravda on the Hudson seeks to guide us to the "proper" conclusions , , ,
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MANCHESTER, N.H. — For weeks this winter, as Newt Gingrich’s presidential hopes faltered under the weight of millions of dollars in attack ads paid for by backers of Mitt Romney, a small group of Gingrich supporters quietly lobbied for help from one of the richest men in America: Sheldon Adelson, a billionaire casino owner and Mr. Gingrich’s longtime friend and patron.
Mr. Romney’s supporters were also calling, imploring Mr. Adelson to stay out of the race.
By the time Mr. Gingrich limped into New Hampshire, some of his top backers had given up on Mr. Adelson and begun prospecting elsewhere, including among erstwhile supporters of Gov. Rick Perry of Texas, to finance a counterattack.
But on Friday, the cavalry arrived: a $5 million check from Mr. Adelson to Winning Our Future, a “super PAC” that supports Mr. Gingrich. By Monday morning, the group had reserved more than $3.4 million in advertising time in South Carolina, a huge sum in a state where the airwaves come cheap and the primary is 11 days away. The group is planning to air portions of a movie critical of Mr. Romney’s time at Bain Capital, the private equity firm he helped found.
The last-minute injection underscores how last year’s landmark Supreme Court ruling on campaign finance has made it possible for a wealthy individual to influence an election. Mr. Adelson’s contribution to the super PAC is 1,000 times the $5,000 he could legally give directly to Mr. Gingrich’s campaign this year.
Several people with knowledge of Mr. Adelson’s decision to donate to Winning Our Future said that it was born out of a two-decade friendship with Mr. Gingrich, his advocacy on behalf of Israel and his turbulent months as a presidential candidate.
“His friend needed his help,” said a close associate of both men, who spoke on the condition of anonymity to avoid drawing Mr. Adelson’s ire. “It’s more than anything else a loyalty thing. And he believes strongly in his platform and in Newt’s candidacy.”
Ron Reese, a spokesman for Mr. Adelson, declined to comment for this article.
At a stop in New Hampshire on Monday, Mr. Gingrich, who complained bitterly about the wealthy Romney supporters who helped send him to a fifth-place finish in Iowa, said Mr. Adelson was operating on his own.
“If he wants to counterbalance Romney’s millionaires,” Mr. Gingrich said, “I have no objection to him counterbalancing Romney’s millionaires.”
But for Mr. Gingrich, the donation could be both boon and burden: Mr. Adelson comes with potential liabilities. His main source of income, casinos, could upset some social conservatives. That he operates in China could rankle isolationist voters, while some of his views on Israel are hawkish by mainstream Republican standards.
Mr. Adelson’s company, Las Vegas Sands, also faces a federal investigation for possible violations of a federal antibribery law, relating to operations in the Chinese gambling district of Macau, the company acknowledged last year. The company has said the investigation stems from the allegations of a disgruntled former employee.
The aid is also likely to intensify public scrutiny of Mr. Adelson, 78, who has invested millions of dollars in conservative causes over the years but prefers to keep his political activities private.
The relationship between Mr. Gingrich and Mr. Adelson dates to the mid-1990s and first centered on their common animosity for labor unions.
Mr. Adelson was building his newest resort casino, the Venetian, and became embroiled in a battle with a local culinary union trying to organize his employees. The conflict soured further when Mr. Adelson helped finance a campaign in Nevada to pass legislation curtailing the ability of labor unions to automatically deduct money from members to finance political activities.
Aides to Mr. Adelson turned to Mr. Gingrich — known for his criticism of labor unions — for advice, said George Harris, who worked for Mr. Adelson at the time. Aides to Mr. Gingrich, then the House speaker, helped Mr. Adelson hone his antiunion pitch, and Mr. Gingrich was invited to Las Vegas to speak and be honored with a fund-raiser.
Mr. Gingrich endorsed the Nevada legislation. He also backed other legislation in 1998 to preserve tax deductions beneficial to the industry.
“They hit it off immediately,” Mr. Harris recalled Monday, explaining that he helped broker the introduction. “They became friends, pals, as they had a great deal in common.”
Mr. Adelson became one of Mr. Gingrich’s most important patrons, donating $7 million to a political committee founded by Mr. Gingrich in 2006, American Solutions, whose direct-mail lists and advocacy of Social Security privatization and greater oil exploration were critical building blocks to Mr. Gingrich’s presidential campaign.
Mr. Adelson allowed Mr. Gingrich the use of his personal aircraft, and the two occasionally met for meals and spoke often by phone, a former aide to Mr. Adelson said.
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But the two shared views about much more than domestic issues. Both men have long been staunch American allies of Prime Minister Benjamin Netanyahu of Israel. Mr. Adelson owns a free daily newspaper in Israel that is credited with helping Mr. Netanyahu return to power in 2009.
In May 2010, the cover of a special section of the paper featured a full-page photograph of Mr. Gingrich in front of an American flag, with Mr. Gingrich criticizing the Obama administration for not moving more aggressively against Iran’s nuclear ambitions.
“Evading the confrontation with evil may bring a second Holocaust,” Mr. Gingrich wrote in the article. “The mistakes made by the White House will exact a terrible price.”
This willingness to publicly criticize American policy toward Israel — during the Bush and Obama administrations — has distinguished Mr. Gingrich from his Republican rivals, said Daniel C. Kurtzer, a former ambassador to Israel under President George W. Bush. Those views often echoed Mr. Adelson’s.
Early on, Mr. Adelson was expected to play a central role on Mr. Gingrich’s campaign, perhaps as finance chairman. But in June, the campaign seemed to implode, with the resignations of his campaign manager and a half-dozen senior advisers.
Within days, though, Mr. Gingrich rebooted his campaign, speaking at a fund-raiser for the Republican Jewish Coalition, where Mr. Adelson sits on the board.
In December, Becky Burkett, the former chief fund-raiser for American Solutions, formed Winning Our Future. Mr. Tyler came aboard as a senior adviser. Rumors soon floated that Mr. Adelson would give the group as much as $20 million — but were quickly denied by Mr. Adelson.
In the days before the Iowa caucuses, as Mr. Gingrich’s poll numbers fell under a withering assault from Restore Our Future, a super PAC backing Mr. Romney, supporters of other Republican candidates said they urged Mr. Adelson to hold back or even endorse a different candidate
People close to the men disagreed on whether Mr. Adelson always intended to support Mr. Gingrich or only came around in recent days, as his supporters came to believe that only a major infusion of money could salvage the campaign.
But when Mr. Gingrich declared in a December interview that Palestinians are an “invented” people — meaning they had no historical claim to have their own state and that they remain committed to destroying Israel — it inspired a new round of enthusiasm for him among many conservative American Jews.
“Not many others are willing to say that, but it is a tragic truth,” said Morton A. Klein, president of the Zionist Organization of America
Mr. Adelson echoed Mr. Gingrich’s comments within days in an interview with Haaretz, an Israeli newspaper.
“Read the history of those who call themselves Palestinians, and you will hear why Gingrich said recently that the Palestinians are an invented people,” Mr. Adelson said.
Fred Zeidman, a Texas energy executive who is another prominent Jewish political contributor and a supporter of Mr. Romney, said he was among those who called Mr. Adelson, and they talked about why he was still backing Mr. Gingrich.
“As long as Newt is in the race, we are going to be with Newt,” Mr. Adelson replied, according to Mr. Zeidman, in a conversation they had in December. “We can’t abandon him now.”