President Trump last year heralded nearly $110 billion in potential deals during a trip to Saudi Arabia in May 2017. Many defense analysts said that figure includes existing commitments and contracts that could last as long as 30 years.
.. “We continue to believe that the death of Jamal Khashoggi will not lead to a major break in U.S. or European defense sales to Saudi Arabia,” said Byron Callan at Capital Alpha LLC. Mr. Callan estimated that Saudi Arabia accounts for about 5% of sales at the big U.S. defense companies.
.. Saudi Arabia is the world’s third-largest defense market after the U.S. and China and the biggest export destination for U.S. contractors, which made more than $3 billion in sales to the kingdom last year
.. The biggest signed deal is a $10 billion purchase agreed in 2014 of hundreds of armored vehicles by a Canadian subsidiary of General Dynamics, which is continuing to make shipments.
.. The kingdom’s wealth and longstanding tensions with Iran led it to plan to purchase best-in-class capabilities such as Lockheed’s Thaad missile-defense system.
.. Saudi Arabia has also bought precision bombs and missiles
.. Defense executives were among prominent attendees lined up for the Future Investment Initiative conference in capital Riyadh next week. A number of executives from finance and industry have pulled out of the conference.
A President Kowtowing to a Mad Prince
And if there are no serious consequences this time as well, even now that his moniker is said to stand for “Mr. Bone Saw,” what will M.B.S. do next?
The truth is that for decades, we have enabled Saudi Arabian misconduct, including the extremist education and terrorist financing that contributed to the 9/11 attacks. We stood by as Saudi Arabia seeded fanatical madrasas in places like West Africa, Pakistan and Indonesia, gravely destabilizing poor parts of the world.
Franklin Roosevelt supposedly once described a Nicaraguan dictator as “a son of a bitch, but he’s our son of a bitch,” and that may be how some Americans see M.B.S. But M.B.S. duped Americans. He talks a good game but didn’t deliver on his promise to buy $110 billion in weapons, didn’t back the Trump peace plan for the Middle East and hasn’t managed to take the Saudi oil company Aramco public.
His plans keep backfiring. His war in Yemen created new opportunities there for Al Qaeda, his confrontation with Qatar benefited Iran, his kidnapping of Lebanon’s prime minister left Hezbollah stronger than ever, and the alleged Khashoggi kidnap-murder is a gift to Saudi rivals in Turkey and Iran.
In short, the mad prince is not only barbaric, he’s also unreliable and incompetent. He doesn’t advance our interests; he damages them. Indeed, one of my fears is that he will try to drag us into a war with Iran.
Yet even as Saudi officials lie low, Trump has become the kingdom’s puppet and apologist, suggesting that “rogue killers” might have been responsible for the apparent murder. He dispatched Secretary of State Mike Pompeo for an unctuous mission to thank King Salman for his commitment to a “thorough” and “transparent” investigation.
Trump acts as if the Saudis have leverage over us. In fact, the Saudis desperately need us and our spare parts for their American-made aircraft. The Saudis haven’t even been able to defeat a rebel militia in Yemen, so they depend on us for their security — yet we squander our leverage.
‘I like them very much:’ Trump has long-standing business ties with Saudis, who have boosted his hotels since he took office
For President Trump, Saudi Arabia is not just a political ally. It has also been a customer.
Trump’s business relationships with the Saudi government — and rich Saudi business executives — go back to at least the 1990s. In Trump’s hard times, a Saudi prince bought a superyacht and hotel from him. The Saudi government paid him $4.5 million for an apartment near the United Nations.
Business from Saudi-connected customers continued to be important after Trump won the presidency. Saudi lobbyists spent $270,000 last year to reserve rooms at Trump’s hotel in Washington. Just this year, Trump’s hotels in New York and Chicago reported significant upticks in bookings from Saudi visitors.
“Saudi Arabia, I get along with all of them. They buy apartments from me. They spend $40 million, $50 million,” Trump told a crowd at an Alabama campaign rally in 2015. “Am I supposed to dislike them? I like them very much.”
The Trump Organization issued a statement Thursday saying that although it has pursued new hotel deals in Saudi Arabia in the past, it has no current plans to do so.
.. Saudi royalty has been buying from Trump dating to 1995, with some of the deals coming during periods when Trump was in need of cash.
.. In 1991, when Trump was nearly $900 million in debt from failed casino projects, he sold his 281-foot yacht to Saudi Prince Alwaleed bin Talal for $20 million.
.. A few years later, the prince bought a stake in Trump’s Plaza Hotel by agreeing to pay off some of Trump’s debts on the property.
.. Tim O’Brien, a journalist who wrote the 2005 biography “TrumpNation,” said these deals were one-sided — in the prince’s favor. He said Trump was in dire financial straits, so the prince got a good price.
.. But there was no indication, back then, that Saudis wanted to curry favor with Trump by giving him a better deal, O’Brien said. “Talal saw him as a profit center,” he said, “not as somebody who he was cultivating as a future president.”
.. In 2001, Trump sold the 45th floor of his Trump World Tower, in New York, to the Kingdom of Saudi Arabia for $4.5 million.
.. More recently, Prince Nawaf bin Sultan bin Abdulaziz al-Saud acquired what would become a 10,500-square-foot triplex apartment in a Trump building on the west side of Manhattan. Nawaf sold it in February for $36 million.
.. During Trump’s presidential campaign, he also seemed to be exploring plans to build a hotel in Jiddah, Saudi Arabia’s second-largest city, part of an international expansion plan. In August 2015 — two months after he got into the race — Trump established eight new shell companies that included the name “Jeddah.”
.. The names of those corporations — four of which also included the word “hotel” — seemed to indicate Trump was planning a hotel in the city.
.. Since Trump won the presidency, Saudis have been patrons of three of his 11 Trump-branded hotels.
.. In early 2017, a lobbying firm working for the Saudi Embassy reported spending $270,000 on food and lodging at Trump’s hotel in downtown Washington. The rooms were used to house people visiting Washington to lobby against a law that the Saudi government opposed — a law that allows victims of the Sept. 11, 2001, terrorist attacks to sue the Saudi government.
.. the general manager at Trump’s hotel on Manhattan’s Central Park West
.. One major reason, General Manager Prince A. Sanders wrote: “a last-minute visit to New York by the Crown Prince of Saudi Arabia.”
Sanders told the investors that the Trump hotel’s Saudi guests did not include Crown Prince Mohammed bin Salman himself because the hotel did not have a suite large enough to suit him. But, he said, “due to our close industry relationships, we were able to accommodate many of the accompanying travelers.”
.. Saudi bookings at Trump Chicago had gone from 81 “room-nights” in the first half of 2016 to 218 in the first half of this year — an increase of 169 percent. (In the same time frame, bookings from Saudi Arabia’s rival Qatar increased 1,633 percent, from three “room-nights” to 52).
Trump Jumps to the Defense of Saudi Arabia in Khashoggi Case
Neither Mr. Trump nor Mr. Pompeo provided any new insights into what had happened to Mr. Khashoggi. But with his comment about presumed guilt, Mr. Trump drew a parallel to the sexual assault accusations made against his newest Supreme Court justice, Brett M. Kavanaugh.
Mr. Trump’s reference to the bitter confirmation battle over Justice Kavanaugh was telling. In that case, he initially took a restrained tone, observing that the judge’s accuser, Christine Blasey Ford, appeared credible in her testimony before the Senate about an alleged sexual assault.
But over time, as the furor threatened to irreparably tarnish his nominee, Mr. Trump discarded restraint. He complained that Justice Kavanaugh had been unfairly accused, raised questions about Dr. Blasey’s account, and even mocked her at a rally.
In the case of Mr. Khashoggi, Mr. Trump first expressed concern about the allegations and warned of severe consequences if the Saudi government were found responsible. But after days of unconvincing denials from the Saudis and growing evidence that Crown Prince Mohammed or his family may have been involved, Mr. Trump is shifting to a tone of defiance.
.. Prince Mohammed, Mr. Trump said, “totally denied any knowledge of what took place in their Turkish consulate.”
.. Asked if the Saudis told him whether Mr. Khashoggi was alive, Mr. Pompeo declined to answer. “I don’t want to talk about any of the facts,” he said. “They didn’t want to either, in that they want to have the opportunity to complete this investigation in a thorough way.”
.. Turkey’s president, Recep Tayyip Erdogan, told reporters in Ankara on Tuesday that investigators who searched the consulate on Monday and Tuesday were looking into “toxic materials, and those materials being removed by painting them over.”
.. Turkish news outlets, citing unnamed sources, have reported that Mr. Khashoggi was drugged, and that parts of the consulate and the nearby consul’s residence were repainted after the journalist’s disappearance.
.. Mr. Trump has vowed “severe punishment” if a Saudi hand is confirmed in Mr. Khashoggi’s killing, but has said he does not want the case to affect arms sales that create American jobs.
.. The Saudi version of the story will probably be that officials intended to interrogate and abduct Mr. Khashoggi, spiriting him back to Saudi Arabia, but that they botched the job, killing him instead, the person said, speaking on the condition of anonymity because Saudi officials had yet to talk publicly about their plans.
.. For two weeks, Saudi leaders, including both the king and the crown prince, have denied that their country had anything to do with Mr. Khashoggi’s disappearance and have said that they did not know where he was. Saudi officials have insisted that he left the consulate, safe and free, the same day he entered it, although they have offered no supporting evidence.
But by Monday night, it appeared that the Trump administration and Turkey’s leaders were leaving room for a new version of events: Mr. Trump said after speaking with King Salman that perhaps “rogue killers” had been involved.
At their meeting on Tuesday, Mr. Pompeo “thanked the king for his commitment to supporting a thorough, transparent and timely investigation of Jamal Khashoggi’s disappearance,”
.. “We are strong and old allies,” the crown prince said in English, in brief remarks as the meeting began. “We face our challenges together.”
.. Steven Mnuchin, the Treasury secretary, still plans to attend a Saudi investment forum next week, even as several American businesses and lobbyists have distanced themselves from the country.