Meanwhile, Ericsson decided to sponsor a speech by Bill Clinton and paid him more than he had ever been paid for a single speech: $750,000. According to Clinton financial disclosures, in the previous ten years Ericsson had never sponsored a Clinton speech. But now it apparently thought would be a good time to do so.
On November 12, 2011, Bill appeared at a telecom conference in Hong Kong and talked in general terms about the role that telecom plays in our lives. One week later, on November 19, the State Department unveiled its new sanctions list for Iran. Telecom was not on the list.
On December 8, Hillary discussed the issue of telecom companies and their sales to repressive regimes for the first time since Bill's speech. She argued that companies like Ericsson needed to make "good decisions" about whom they do business with but proposed no further action.
In April 2012, President Obama signed an executive order imposing sanctions on telecom sales to Iran and Syria. But those sanctions did not cover Ericsson's work in Iran. The Swedish company said that it was planning to scale down its work in the country because of public pressure, but internal documents obtained by Reuters found that the company planned to honor existing contracts in Iran.
In 2011 much of the Arab world was in upheaval, dealing with the aftermath of the Arab Spring, which had sparked widespread protests across the region. In Egypt and Tunisia, large crowds took to the streets and demanded political change. Many of these protests turned violent.
Even countries considered relatively stable, including Bahrain and Yemen, were dealing with violent upheavals. The events left small but wealthy countries like the United Arab Emirates (UAE) feeling very vulnerable. The UAE was being pressured by the United States to tighten its grip on economic ties with Iran.
In May two oil and shipping companies faced sanctions for their trade with Iran. On June 20, 2011, the Obama administration designated six UAE-based shipping firms for sanctions over their business dealings with Iran.
Three days later, the United States charged several other parties in the UAE with trading parts for fighter jets and attack helicopters to Iran. The UAE was in a precarious situation because it feared the Iranian regime. But it feared something perhaps even more: being abandoned by the United States.
In a secret State Department cable, the crown prince said his country was "being left out of our [US] Iran sanctions consultations." He explained to a visiting congressional delegation that the royal family was "left wondering what will happen to them in any deal the US and Iran reach through back-channel conversations."
Amid this uncertainty, the royal family decided to pay Bill Clinton $500,000 to come and speak in Abu Dhabi. Bill arrived in Abu Dhabi and stayed at the Emirates Palace hotel.
His speech was on collecting environmental data. "The lack of environmental data hurts," he said. "On top of all environmental issues, the financial crisis is making the world's stability even worse. The only way out, though, is a green economy."
What is striking about the speech is not what Clinton said but the timing of the payment. Even as Bill was being introduced to the audience by the crown prince of the UAE, the prince's brother (the foreign minister) was en route to Washington for meetings with none other than Hillary.
Sheikh Abdullah bin Zayed al-Nahyan arrived in Washington on December 12 and met Hillary the day after Bill collected his half million. Based on the Clintons' financial disclosures, it does not appear that the UAE royal family had ever paid for a Clinton speech before.
This was not the first time Bill collected large checks for speeches paid by foreign governments, such as Thailand and Turkey. It certainly wouldn't be the last. The year 2010 was a tense time for US-Chinese relations. The problems were piling up: the Chinese government reduced its military ties with the Pentagon following US arms sales to Taiwan;
Google disclosed that it had been a victim of a Chinese cyber assault; Barack Obama hosted the Dalai Lama in Washington amidst public outcries in Beijing; relations grew stiff when officials disagreed on trade issues and China's alleged manipulation of its currency.
Meanwhile, China was flexing its military muscle, sending a submarine to the bottom of the South China Sea where it planted a Chinese flag on the ocean floor to signify China's claim to the mineral-rich area.
At the center of US policy toward China was Hillary Clinton, who was the architect of the Obama administration's strategic "pivot" to Asia. At this critical time for US-Chinese relations, Bill Clinton gave a number of speeches that were underwritten by the Chinese government and its supporters.
That might not be apparent if you look at the Clintons' public financial disclosures. For example, on October 21, 2011, Bill gave a speech before something called the Silicon Valley Information Business Alliance in Santa Clara, California. But who underwrote the speech?
According to correspondence between Bill's office and the State Department, the cosponsors were a coalition of Chinese government entities and organizations. Bill received $200,000 for the speech (well above his average for speaking in the United States) and the sponsors were the China Electronic Commerce Association (an entity launched and chaired by an official from the Chinese Ministry of Information Industry); the Suzhou People's government (a municipality around Shanghai); the China Association of Science and Technology Industry Parks (this third sponsor sounds pretty innocuous, but it is a government-run entity in China); and the California State Friendship Committee, a small California-based organization designed to foster US-Chinese relations.