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ANCA: U.S.-Turkey Business Coalition Lobby Distortions Revealed

Armenian National Committee of America
1711 N Street NW
Washington, DC 20036
Tel. (202) 775-1918
Fax. (202) 775-5648
Email anca@anca.org
Internet

PRESS RELEASE
March 28, 2007
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

U.S.-TURKISH BUSINESS COALITION FALSELY CLAIMS CORPORATE
OPPOSITION TO RECOGNITION OF THE ARMENIAN GENOCIDE

— Microsoft, Johnson & Johnson, and Cargill Distance
themselves from the Turkish Government’s Opposition
to the Congressional Armenian Genocide Resolution

WASHINGTON, DC – The American Business Forum in Turkey (ABFT), an
Istanbul-based group, is falsely claiming that its members –
including a broad range of major American corporations – are
opposed to the Armenian Genocide Resolution, reported the Armenian
National Committee of America (ANCA).

The controversy over these false claims, which erupted during the
annual meeting of the American Turkish Council in Washington, D.C.
was covered in today’s issue of Roll Call, the Capitol Hill
newspaper (see text below).

In a February 15, 2007 press release, the ABFT announced that it
had sent letters urging Members of Congress to oppose H.Res.106,
legislation recognizing the Armenian Genocide. The ABFT, which was
founded in 2004, describes itself as an American Chamber of
Commerce in Turkey representing approximately 70 prestigious U.S.
firms.

In response to the ABFT’s campaign against the Armenian Genocide
Resolution, the ANCA sent formal letters of inquiry to each of its
member corporations. In these letters, the ANCA asked the
following four questions:

1) Was your corporation involved in the ABFT’s decision to oppose
the Armenian Genocide Resolution, H.Res.106?

2) Was your corporation informed before the ABFT publicly
announced its campaign against the Armenian Genocide Resolution,
H.Res.106?

3) Does the public position taken by the ABFT against the Armenian
Genocide Resolution, H.Res.106, reflect the views of your
corporation?

4) Is your corporation opposed to the adoption of the Armenian
Genocide Resolution?

In response to these written inquiries, a number of these
corporations indicated that they do not support and, in many
instances, were not even aware of the ABFT’s use of their names to
oppose U.S. recognition of the first genocide of the 20th Century.
Among those responding were the following:

* Clement R. Gagne III, Microsoft Central and Eastern Europe’s
Director of Legal and Corporate Affairs, in a letter addressed to
ANCA, wrote that: "Microsoft has not participated in any
discussions or decisions of ABFT, and was not involved with the
communication to which you referred in your letter." Microsoft is
ranked 48th on the 2006 Fortune 500 and had annual revenue last
year of $44.28 billion.

* Thomas M. Gorrie, Ph.D., Johnson & Johnson’s Corporate Vice
President for Government Affairs and Policy, wrote to the ANCA
that: "Johnson and Johnson in Turkey is not a board member and has
not been engaged in any role in the ABFT communication you have
mentioned in your letter. As [the] world’s largest and most
comprehensive and broadly based health care company, we would not
engage in political issues of this nature." Johnson & Johnson is
ranked 32nd on the Fortune 500 and had annual revenue last year of
$53.32 billion.

* Van Yeutter, Cargill’s Director of International Business
Development and Washington Operations, explained in writing that:
"We are a commercial enterprise focused on business matters rather
than on political or foreign policy matters. As such the company
does not have a position on the issue of your enquiry." Cargill, a
multinational corporation based in Minnesota, is the world’s second
largest privately held corporation. In 2006, it had revenue of
$75.2 billion.

Copies of these letters can be obtained by writing to the ANCA at
anca@anca.org.

The full text of the Roll Call article is provided below.

#####

Companies Line Up With Turkey

Many Fear Impact of Resolution on 1915 Killing of Armenians

By Kate Ackley
Roll Call Staff

March 28, 2007

A broad cross-section of corporate America quietly is supporting
efforts to thwart a Congressional resolution that would label as
"genocide" the killing of Armenians by the Ottoman Empire nearly
100 years ago. Blue-chip companies from the defense, financial
services, pharmaceutical, energy and other sectors fear the
resolution could hurt their business in modern-day Turkey.

But just as these corporate representatives have focused on
stopping the nonbinding resolution on Capitol Hill, an Armenian
lobbying group, the Armenian National Committee of America, has
launched its own effort. The Armenian committee is not just putting
pressure on Members to support the genocide resolution, but is
trying to chip away at the corporate interests standing in the way.

The Armenian group this month sent letters to more than 100
companies, including Microsoft and Johnson & Johnson, that are
members of the American Business Forum in Turkey or the American
Turkish Council, asking them to clarify their position on the
genocide resolution.

"Our thought was that ABFT and ATC were being presumptuous in
speaking for these companies," said Aram Hamparian, executive
director of the Armenian National Committee. In recent days,
Hamparian said Microsoft, Johnson & Johnson and Cargill have sent
letters in response distancing their companies from the lobbying
against the genocide resolution. Cargill, for one, said that it
"does not have a position on the issue," while Johnson & Johnson
replied that "we would not engage in political issues of this
nature," according to copies of the letters.

The American Turkish Council, which does not count those three
companies among its member list, said stopping the resolution is a
top priority for the organization, which this week has convened its
members for an annual conference near Capitol Hill, giving the
group’s members an opportunity to lobby.

"Our message essentially is that this is the perfect storm of bad
legislation because it has so many negative dimensions in foreign
policy, national security and then there’s the commercial
dimension," said the council’s president, Jim Holmes. This year is
an election year in Turkey, and Holmes said that if Congress passes
the resolution, Turkish officials would be under pressure to sever
business ties with American companies.

"There is rising nationalism in Turkey, and this is an issue that
nationalists will grab onto to promote their politics and this
could be detrimental to the U.S. relationship," said one Hill
staffer tracking the issue.

Companies such as Citigroup, Raytheon, Lockheed Martin, Pfizer,
Philip Morris International, Raymond James and others are working
through the council to stop the resolution, according to Holmes and
K Street sources. "In the worst case, if it passes, we know there
will be commercial consequences that will be demanded by the
people" of Turkey, Holmes added.

The resolution in the House is sponsored by Rep. Adam Schiff (D-
Calif.), while Majority Whip Dick Durbin (D-Ill.) is the lead
sponsor in the Senate.

Schiff said that Turkey and its business allies have pulled out all
the stops to scuttle the genocide resolution.
"They have some of the best-paid lobbyists on the Hill," Schiff
said. "They have enlisted non-Turkish organizations to help their
denial efforts and are enlisting people to write op-eds in
newspapers." The Turkish government has on retainer lobbyists
including former Rep. Bob Livingston (R-La.) and the firm DLA
Piper.

But, Schiff noted, this year his resolution has more co-sponsors
than in the past and the political climate is ripe. And lobbyists
agree that although the resolution has been introduced a number of
times – and it has been opposed by the Bush and Clinton
administrations – this time the political environment is different.
The Armenian population in California is large, said a corporate
lobbyist, and it’s something that California Democrats have
promised those voters.

Congress has a "moral imperative" to recognize the killings as
genocide, Schiff said, "and we can’t worry about offending an
ally."

Hamparian of the Armenian committee said that his group wants the
resolution passed by April 24, the date of remembrance for what he
considers the Armenian genocide.

Mark Parris, a former ambassador to Turkey who is now at the
Brookings Institution, said defense contractors and financial
services firms are following the issue most closely. U.S. defense
companies could be barred from government contracts, he said.

Turkey has a booming economy, Parris added, and banks such as
Citigroup have become significant players. "I don’t know that they
are quite as vulnerable as defense, but the concern is that if
there’s turbulence in the U.S.-Turkish relationship, foreign direct
investment will slow down," he said.

Tuluy Tanc, minister counselor at the Turkish embassy, said that
calling what happened in 1915 genocide is very wrong and that label
would have a negative impact for U.S.-Turkish relations. "We fear
to think of the consequences," he said.

One corporate lobbyist for a company that is lobbying on the issue
said he could speak only on background because the company does not
want to publicly discuss its efforts against the genocide
resolution. The resolution "is a terrible idea," said this
lobbyist. "It’s not good for business or for Turkish-American
relations. It’s a country on the precipices, trying to be a
democratic state. The last thing we want to do is hand our enemies
something they can use to beat up that government."

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