The Cable

Magnitsky Act will be linked with Russian trade bill in Senate

The bill to grant Russia Permanent Normal Trade Relations (PNTR) was introduced in the Senate Tuesday and the head of the Senate Finance Committee promised he will combine it with a bill to sanction Russian human rights violators.

Sen. Max Baucus (D-MT), who is the main sponsor of the PNTR bill and who will shepherd the legislation through his Finance Committee and then on the floor, has agreed to link it to the Magnitsky bill and pledged to pass them both this year. In doing so, Baucus secured the support of Sen. John McCain (R-AZ) for the PNTR bill, which includes a repeal of the 1974 Jackson-Vanik law that was set in place to punish the Soviet Union for refuses to let Jews emigrate.

"It is clear the Magnitsky Act has overwhelming support in the Senate and growing support in the House," Baucus wrote in a letter today to McCain, Sen. Ben Cardin (D-MD), Sen. Joe Lieberman (I-CT), and Sen. Roger Wicker (R-MS). "It is equally clear that many of our colleagues are rallying around the position you have advanced -- that the repeal of Jackson-Vanik for Russia must be accompanied by passage of the Magnitsky Act. I am fully committed to ensuring that the Senate can act on both items this year."

After receiving that letter, McCain joined with Baucus, International Trade Subcommittee Ranking Member John Thune (R-SD), and Foreign Relations Committee Chairman John Kerry (D-MA) in unveiling the PNTR legislation, which they said allows U.S. business to take full advantage of the Russian market when Russia officially joins the WTO later this summer.

"This is an opportunity to double our exports to Russia and create thousands of jobs across every sector of the U.S. economy, all at no cost to the U.S. whatsoever.  We give up nothing as part of this process -- not one single tariff reduction -- so it's truly a one-sided benefit for the U.S.," Baucus said in a press release. "Jackson-Vanik served its purpose during the Cold War, but it's a relic of another era that now stands in the way of our farmers, ranchers and businesses pursuing opportunities to grow and create jobs... The clock is ticking for us to move, so we need to act now."

"As I and others have made clear, the extension of Permanent Normal Trade Relations status and the repeal of the Jackson-Vanik amendment for Russia must be accompanied by passage of the Magnitsky Act," McCain said in the release. "I appreciate Senator Baucus's written commitment that he will work for Senate passage of both of these pieces of legislation as soon as possible this year. As we take steps to liberalize U.S. trade with Russia, as we should, we must also maintain our long-standing support for human rights and the fight against corruption in Russia."

The Obama administration has opposed the Magnitsky Act in public while working quietly with Cardin to make changes to the bill just in case its passage can't be avoided. The latest draft version of the bill, circulated by Cardin and obtained by The Cable, seeks to make it more difficult to add names to the list of human rights violators that the bill creates and adds ways for the administration to waive penalties against those violators.

By gaining McCain's support, Baucus has removed a major obstacle to the passage of PNTR for Russia. But now, with McCain on board, Baucus's PNTR bill is linked to the Magnitsky Act in such a way that if the administration opposes or seeks to water down the Magnitsky bill without McCain's agreement, both pieces of legislation could be in jeopardy.

The House Foreign Affairs Committee approved its own version, the Sergei Magnitsky Rule of Law Accountability Act of 2012, last week. The legislation is named for the anti-corruption lawyer who died in a Russian prison, after allegedly being tortured, two years ago. But committee chairwoman Ileana Ros-Lehtinen (R-FL) doesn't support joining Magnitsky with the bill to grant PNTR status to Russia.

"Ros-Lehtinen considers PNTR separate from Magnistky and the issue of Russian human rights, and is opposed to linking Magnitsky to any effort to repeal Jackson-Vanik," her spokesperson Brad Goehner said.

The Cable

McGurk pressed on handover of Hezbollah commander

A new issue has emerged in the confirmation of Brett McGurk to become the next ambassador to Iraq and it has nothing to do with the intimate e-mails he sent to a Wall Street Journal reporter in 2008.

One Republican senator is now making an issue out of McGurk's role in the case of Ali Musa Daqduq, the alleged Hezbollah commander who was transferred from U.S. to Iraqi custody last December and acquitted in an Iraqi court last month. He remains in Iraqi custody pending an automatically triggered appeal, but could be released thereafter.

The Daqduq issue is just the latest concern various Republican senators have raised over McGurk's nomination. Some GOP lawmakers want answers about his relationship in Iraq with reporter Gina Chon while he was negotiating the U.S.-Iraq Status of Forces Agreement in 2008. The Wall Street Journal accepted Chon's resignation today. Others question McGurk's role in the failed negotiations to extend the U.S. troop presence in Iraq past 2011, and his overall qualifications for the job.

Daqduq, a Lebanese citizen whom U.S. military officials claim is a Hezbollah commander, was imprisoned by U.S. forces in Iraq and accused of leading a team that kidnapped and killed five U.S. soldiers in Iraq in January 2007. Last December, 21 U.S. senators wrote a letter urging the administration not to hand him over out of concern that the Iraqi government might release him.

On Monday, Sen. Mark Kirk (R-IL) sent McGurk a series of questions demanding answers on the U.S. government's actions on the case as well as McGurk's personal involvement.

"How would you characterize your role in the transfer of Hezbollah terrorist Ali Musa Daqduq from U.S. to Iraqi custody?" reads the first question.

"Before the American withdrawal from Iraq last year, what steps, if any, did you take to stop the transfer of Hezbollah terrorist Ali Musa Daqduq from U.S. custody?" the next question reads.

Kirk asked McGurk if he will agree to provide Congress with copies of all State Department and National Security Council emails, letters, communications, telephone call readouts and readouts of meetings that mention Ali Musa Daqduq in all of 2011.

Kirk also wants to know what efforts are underway to get Daqduq back in U.S. custody, whether the U.S. government has formally requested his extradition, and whether McGurk would support the sale of military equipment to Iraq if the Iraqi government doesn't handover Daqduq.

Republican senators have also criticized McGurk for beginning his relationship with Chon, to whom he is now married, while he was simultaneously exchanging information with her regarding U.S. government activity.

Sen. James Inhofe (R-OK) already cancelled a meeting with McGurk over that issue as well as over unconfirmed allegations that McGurk was caught on video engaging in improper sexual behavior on the roof of Saddam Hussein's Republican Palace in 2004.

Now, Sen. James Risch (R-ID), who praised McGurk in his confirmation hearing last week, is also expressing reservations about his confirmation.

"Prior to these email revelations, I had reservations about confirming Brett McGurk as ambassador to Iraq," Risch told The Cable through a spokesman. "Now that additional issues have been raised, more information will be needed and I reserve final judgment until all the facts are brought to light."

Sen. John McCain (R-AZ), the first senator to raise concerns about the McGurk nomination, was apparently unswayed by last week's hearing. "His concerns regarding Mr. McGurk's time in Iraq, particularly related to his failure to negotiate a residual force as everyone envisioned, remain," said McCain spokesman Brian Rogers.

No senator can issue a formal hold on the McGurk nomination until the Senate Foreign Relations Committee votes to approve it, and no vote has been scheduled. But the concerns about McGurk's professional and private actions in Iraq are mounting and may reach a tipping point soon, Republican Senate aides say.

"Senator Kirk's questions touch on one of the most emotional issues involved in the McGurk nomination and several senators might have placed holds on McGurk for this reason alone," one senior GOP Senate aide said. "This, on top of McGurk's other problems, creates serious doubt as to the future of this nomination."

UPDATE: According to a State Department official, McGurk left Iraq on Oct. 22, 2011, was not involved in the negotiations with Iraq over the issue, and was serving as a senior advisor to the ambassador focused on other matters. "Simply put, Brett McGurk was not involved in the Daqduq issue in any way, shape, or form," the official said.