Washed It!

With their eyes on the 2012 election, Republicans are preparing to maximize conflict with Democrats over healthcare in the new Congress and minimize potential compromises, according to GOP strategists, lawmakers and lobbyists.

That strategy is setting the stage for a bitter stalemate on Capitol Hill over the next two years as the president and senior congressional Democrats dig in to defend their signature achievement.

But Republican leaders and strategists think a renewed battle over healthcare will help the party expand its electoral gains and drive President Obama from the White House.

“Republicans have successfully challenged the healthcare legislation once,” said GOP strategist Frank Luntz. “They’ll do it again.”

Luntz, a leading architect of the Republicans’ successful campaign to cast the healthcare legislation as a ” Washington takeover,” said Democrats would suffer further if they tried to defend the law. “Democrats have more to lose,” he said.

In practical terms, the GOP approach will probably mean little congressional input over how the law is actually implemented. The Obama administration will retain broad authority to refine the law on its own, working with businesses, consumer groups, healthcare providers and state regulators, healthcare experts say.

While lawmakers deadlock on Capitol Hill, GOP leaders already have a target list of Democratic senators who are up for reelection in two years in traditionally red states including Missouri, Montana, Nebraska and Virginia.

“The next couple of years, in some ways, become about the 2012 elections,” Republican healthcare lobbyist Dean Rosen said last week at an Alliance for Health Reform briefing in Washington.

The GOP tactics mirror those deployed by Democrats after their 2006 electoral sweep.

Then, Democratic House and Senate leaders who had won majorities on a promise to challenge President George W. Bush’s Iraq war strategy bullied congressional Republicans by repeatedly forcing them to vote to support the unpopular war.

The Democrats’ legislative campaign ultimately collapsed. Bush used his veto pen to block legislation mandating troop withdrawals. Within a year, the Bush administration’s effort to stabilize Iraq with a troop surge showed signs of success.

Many Democrats think they too will be vindicated as the public sees more of the benefits of the new healthcare law.

Whit Ayres, a longtime GOP pollster, warned that Republicans risked a backlash if voters perceived them as more interested in scoring political points than in responding to voters’ concerns.

“There is no particular love for the Republican Party in the electorate,” he said at a recent Health Affairs forum. “Republicans are going to have to earn [voters'] support and earn their respect, and the way you do that is by governing responsibly.”

Most of the healthcare law’s major benefits — including its guarantee of coverage to all Americans — do not go into effect until 2014. And there are few signs the law is getting more popular.

In the interim, Republicans, who think the law was crucial to their electoral gains, are increasingly confident they can showcase its shortcomings and further weaken already tepid public support for Democrats.

“They are looking for ways to be very aggressive,” said Michael Franc, who works closely with congressional Republicans as head of government relations for the conservative Heritage Foundation.

Republicans provided a preview of their strategy before the midterm election as House GOP leaders forced Democrats to vote in June and September on proposals to repeal provisions of the healthcare law.

GOP leaders have indicated they intend to do more when they control the flow of legislation in the House next year, with likely votes to defund the law and excise controversial parts such as cuts in Medicare spending and a new mandate requiring Americans to get health insurance.

Republicans are spoiling for a healthcare fight

His white shirt pressed, the chef glides through the crowd like a ship in full sail, checking tables, nodding to waiters. His world is full of hurry but he is not rushed. He sits down in the shade, wiping his brow amid a lunchtime crowd of gunrunners, clan elders, beggars and bankers.

They drift down unnamed roads toward his tables, the air sweet with meat, crushed vegetables, sprigs of spearmint. Scores of diners at a time cram elbow to elbow slurping and scooping at the edge of town, where big trucks haul white stone down from the mountains.

They know Abdulkarim Harazi has three wives, 18 children, a worn dagger and the humor of a man not done in by adversity. When he speaks, his customers, sopping broth with soft bread, listen, knowing that no matter how circuitous or embellished the tale, there’ll be wisdom waiting at the end.

“You handle a big family with justice,” says Harazi, pausing the way he does, eyes bright with mischief. “Justice means sleeping with one wife one night and another wife the next. This brings balance. Justice can’t control some things, though, like the passion of the heart.”

Harazi’s fires spit blue flames and hum like storms, searing blackened bowls filled with a traditional meat dish called fasha and a stew known as saltah. Thick with chilies, herbs, onions, potatoes, coriander and maybe a speck of cilantro, the meals bubble and cool beneath conversations of impatient men.

“Quality and cleanliness are the keys” to a fine meal, Harazi says.

His waiters have blistered fingers and gold-trimmed caps. From sunrise to just before dusk, they serve 1,300 pounds of beef and 660 pounds of vegetables to 4,000 diners at the Fakhi restaurant. Nobody rests, not the ladle men, nor the dicers, knives chopping, oil hissing at the culinary crossroads of the capital, where, for a brief moment and a few dollars, businessmen sit with junkmen for a taste that’s the same to everyone.

The main floor is shaded and dim, the tables long. Finding a seat requires cunning and swiftness and dodging men with quick hands. Some have guns, most have daggers. Outside, down steps faded by sunlight, more tables are lined beneath narrow shelters and there’s a feeling of an army encamped beneath the hills circling the city. From the road, amid clatter and the glow of fires, the word is that eating lunch anywhere else would be a pitiful miscalculation.

The men — not a woman in sight — speak of private misfortunes and national troubles. A land of deserts, rock ridges and sea coves, Yemen is both beautiful and tormented. Rebellions rattle north and south, Al Qaeda fighters roam the outlands and the Americans are talking about missile strikes and the cost of terror. Poorest country in Arab world, that’s what they keep saying, a place of thin wallets and drought. Here, though, you polish your spoon, stay away from the flame and eat.

“It’s simple,” says Harazi. “The cost of living is too high and the country is too unstable. It’s all about food and worry these days. There’s no hope because you can’t see anyone improving around you. I try to do the best for my children. Education, they must have that.”

He’s a solid man with thick hands and black stubble, settling into his chair like a priest hearing confessions. He knows that life needs places like this restaurant, reliable and intimate as home but without home’s predictability. You never know who might pull up on a motorcycle or amble in from the fringes. Harazi’s eyes gather them all, watching, ever watching.

By midafternoon the men are restless, waiting to dip into crinkly bags of shiny narcotic khat leaves that will mellow them out until way past sunset. It’s a ritual as common as sleeping or waking. Nearly everyone at the restaurant finishes lunch and chews khat, cheeks bulging, eyes calm, the world suddenly fixable.

“Khat makes you forget about things,” says Harazi. “Khat gives you many ideas, but behind them is no planning.”

He laughs.

Wheels spin through gravel; a tribal leader in an SUV arrives in the parking lot, draped by dust and a well-armed entourage. Diners pause. No shots fired. Spoons resume. The leader, kissing cheeks, slapping backs, finds a seat.

“Look at that,” Harazi says, “Barack Obama doesn’t have as many bodyguards.”

“How many employees do you have?” someone asks.

Harazi looks around and whispers.

“One hundred, but if the taxman comes, only 20.”

Food for thought at one culinary crossroads in Yemen

The leaders of the world’s 20 major economies on Friday ended a frequently rancorous two-day summit in this northeast Asian capital without reaching agreement on specific steps to avert damaging currency and trade wars.

There were far more setbacks than gains, but President Obama suffered the biggest disappointment, falling short in his attempt to forge a unified approach to boosting the global economy.

In one blow, G-20 members refused to endorse a U.S. effort to force China to raise the value of its currency, prolonging a bitter dispute that many say could eventually lead to a global trade war. Before world leaders left the city, they issued a watered-down statement agreeing merely to refrain from “competitive devaluation” of currencies.

The joint statement described their intent to promote growth while balancing trade and exchange rates and avoiding protectionist policies in general. U.S. officials described it as a substantial deal that will help relieve some of the pressure on countries suffering big trade deficits. But nations are under no binding obligation to follow the agreements.

The previous day, the U.S. and South Korea acknowledged that they remained in a stalemate over a free-trade agreement that has languished in the national legislatures of both nations.

In his final speech, Obama put a positive spin on a disappointing summit, saying that the world’s developed and developing economies have been successful in putting the global economy back on a path toward recovery.

Yet he acknowledged that the summit nations risk slipping back into the old imbalances that contributed to the global economic crisis.

Still, he would not admit defeat in back-door meetings that often seemed on the verge of breaking into hostility.

“The work that we do here is not going to seem dramatic. It is not always going to be world-changing. But step to step, what we’re doing is building stronger international mechanisms and institutions” and reducing tensions among nations, Obama said.

He also blamed the media, saying that the reporting on the G-20 summit has been “all about conflict,” while ignoring that what was accomplished.

He stressed that G-20 leaders made strides, including the development of a system to give the international community a mechanism to determine whether countries are engaging in unfair practices with their trading partners.

“Sometimes I think naturally there’s an instinct to focus on the disagreements,” the president said, when in fact “in each of these successive summits we’ve actually made progress.”

But time and again in Seoul, world leaders showed that they were in no mood to compromise and instead were headed toward broad, general pledges that did little to mask their inability to find common ground for immediate action.

At times, that failure to find consensus raised the specter of countries pursuing their own interests at the expense of coordinated and balanced global growth.

British Prime Minister David Cameron warned of the risks of that route at the summit opening, saying failure by the G-20 to accomplish some sort of global accommodation could lead to “a return to what happened in the 1930s: protectionism, trade barriers, currency wars, countries pursuing beggar-thy-neighbor policies; trying to do well for themselves but not caring about the rest of the world.”

Many countries, however, appeared to be doing just that. In particular, they took aim at the Federal Reserve’s recent decision to pump $600 billion into the U.S. financial system, a move that critics saw as an attempt to lower the value of the dollar and therefore make U.S. exports more competitive.

As the leaders gathered in Seoul, Bank of China Chairman Xiao Gang called the Fed’s move “dangerous,” writing in the semiofficial China Daily newspaper that it had driven the dollar down in value, raised expectations of inflation and hurt other economies. That position was backed by former Federal Reserve Chairman Alan Greenspan, who said the U.S. was “pursuing a policy of currency weakening.”

U.S. officials declared they were doing no such thing. And, in fact, the U.S. dollar has been rising in value in recent days.

“We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy,” Treasury Secretary Timothy F. Geithner told CNBC from Seoul. “It’s not an effective strategy for any country, and it’s not for the U.S. We’ll never do that.”

G-20 summit ends with watered-down agreement

Prime Minister Benjamin Netanyahu clashed publicly with President Obama on Tuesday over Israeli construction in disputed East Jerusalem, throwing a teetering Mideast peace effort deeper in doubt.

Responding to criticism from Obama, Netanyahu struck a defiant tone in commenting on plans to build 1,300 more Jewish housing units in East Jerusalem, saying his government had never agreed to limit construction in the city.

“Jerusalem is not a settlement. It is the capital of the state of Israel,” Netanyahu said in a statement. “Israel sees no connection between the diplomatic process and the planning and building policy in Jerusalem.”

Netanyahu’s statement came hours after Obama warned that the new construction, announced by Israel on Monday, could harm a renewed Mideast peace effort began in early September. Obama made the remarks a few hours after arriving in Indonesia, his boyhood home for four years, where he was set to deliver the second major speech Wednesday in his outreach to the Muslim world.

“This kind of activity is never helpful when it comes to peace negotiations, and I’m concerned that we’re not seeing each side make that extra effort involved to get a breakthrough,” Obama said. “Each of these incremental steps end up breaking trust.”

Israel also is moving ahead with 800 units in the West Bank settlement of Ariel, Israeli news reports said Tuesday.

Saeb Erekat, the chief Palestinian negotiator, said Israel’s latest expansions are part of “a premeditated process to kill the possibility of an independent Palestinian state.” He said that if the Obama administration is unable to get peace talks back on track in the coming weeks, it should recognize an independent Palestinian state with pre-1967 borders.

Israel claims all of Jerusalem, but the Palestinians claim East Jerusalem, which was captured in the 1967 Middle East War, as the capital of their future state. The international community does not recognize Israel’s annexation of the city’s eastern sector, and a succession of American administrations have urged Israel not to build there.

Netanyahu’s pronouncement was consistent with Israeli policy, yet his sharp tone may embarrass Obama at a moment of vulnerability. Obama is visiting the world’s largest Muslim country, and the rebuke may again raise questions in the Muslim world about how much influence the American leader really has on a priority issue.

The disagreement also comes a week after Obama suffered a setback in the midterm elections, which gave Republicans, who are likely to be sympathetic to Netanyahu’s point of view, majority control of the House of Representatives. Some Israeli officials and U.S. analysts had predicted before the election that Netanyahu might feel emboldened to push back on Obama if the Democrats fared poorly.

Obama launched a new peace effort Sept. 1, but it has been nearly stalled as the Palestinians refuse to negotiate unless Israel halts construction in the disputed areas. Palestinian leaders contend that the Jewish settlers are taking land whose ownership should be decided in negotiations.

Robert Danin, a former U.S. official and specialist on Arab-Israeli issues, said it may have been politically risky for Netanyahu to oppose the new construction project, since Israelis view such building as fully within their rights.

With Netanyahu planning to meet Secretary of State Hillary Rodham Clinton in Washington on Thursday, the strong words will not help the U.S. efforts to bring the two sides back to the peace table, said Danin, who is with the Council on Foreign Relations.

“For there to be a deal, the temperature has to come down,” he said.

Israel’s go-ahead to build 1,300 homes in East Jerusalem met with a storm of disapproval from around the world, including all four members of the diplomatic “quartet” that seeks to promote the Mideast peace talks: the United Nations, the European Union, Russia and the United States.

The Russian Foreign Ministry said in a statement that Russia views the announcement “with most serious concern.… We find it essential that the Israeli party refrain from the declared construction.”

Obama’s relationship with Netanyahu has gone through alternating periods of warm and cool. Obama was furious with Netanyahu in March, when new construction was announced in East Jerusalem just as Vice President Joe Biden was visiting. In July, Obama warmly welcomed Netanyahu to the White House.

Yet Obama has maintained pressure on the Israeli prime minister like few recent presidents. In September, he called on Netanyahu from the podium of the United Nations General Assembly to halt settlement construction in the name of peace, a plea Netanyahu has so far resisted.

cparsons@latimes.com

paul.richter@latimes.com

Parsons reported from Jakarta and Richter from Washington. Times staff writer Edmund Sanders in Jerusalem contributed to this report.

Netanyahu defiantly answers Obama’s warning over construction in East Jerusalem

Democrats fought Republicans on Saturday in a campaign battle that stretched coast to coast, pushing against an epic tide of anger, frustration and economic anxiety that could sweep the GOP to control of one and possibly both houses of Congress.

Driving deep into once-solid Democratic territory, Republicans spent the last weekend of the midterm election campaign targeting House seats in blue-state bastions such as California, New York and Massachusetts. Democrats poured tens of millions of dollars into a last-ditch effort to save dozens of threatened incumbents, writing off others whose chances appeared beyond hope.

With spending near the $4-billion mark, a record for a midterm contest, there was little escaping the last blast of campaigning. Candidates and others with a stake in Tuesday’s outcome — including, most prominently, President Obama — staged rallies while hundreds of thousands of volunteers knocked on doors and manned phone banks, urging supporters to the polls.

In Philadelphia, the first stop on a final campaign swing, Obama said all the progress of the last two years could be rolled back if Republicans seize control of Congress.

“We can’t move backwards now. We’ve got to keep moving forward,” Obama told an audience of Democratic volunteers at Temple University. “And that’s all going to be up to you. So I want everybody to get out there, knock on doors, make phone calls, volunteer, talk to your friends, talk to your neighbors.”

Rep. John A. Boehner of Ohio, the likely House speaker if Republicans take over, used the party’s weekly radio address to jab at the president and Democrats and to promise a change from the last time Republicans ran Congress. He promised smaller government and greater accountability.

“We’ve tried it President Obama’s way,” Boehner said. “We’ve tried it Washington’s way. It hasn’t worked.”

All the while, a torrent of TV and radio advertising provided a loud and surly campaign soundtrack, blaring virtually around the clock. In some states, every last minute of TV ad time was sold out.

All 435 U.S. House seats are up on Tuesday. Republicans need a gain of 39 to win control of the House, which they lost in 2006. Despite a public show of optimism, based on healthy Democratic turnout in some early voting, party strategists privately echoed Republicans who have suggested a change in power was highly likely. The only question, both sides agreed, was the magnitude of Republican gains and whether it approaches — or surpasses — the 52-seat GOP landslide in 1994, the last time Democrats controlled Congress and the White House.

Voters will cast ballots for 37 of 100 U.S. Senate seats. Democrats were confident they would keep the majority, albeit narrowly, and Republican strategists conceded the likelihood. The GOP needs to convert 10 seats to take over and many handicappers predicted the party would fall short, as contests in Connecticut and West Virginia seemed to tip the Democrats’ way and as Sens. Barbara Boxer in California and Patty Murray in Washington appeared to shore up support.

The last time either party gained at least 10 Senate and 40 House seats in a single election was in 1958.

Also on the ballot Tuesday are the governorships of 37 states, including California, Florida, New York and Texas. Republicans seem poised to gain about a half-dozen governor’s seats and take control of several statehouses, which could have significant implications for races in 2012 and beyond, as legislators redraw the boundaries used to elect members of Congress.

Midterm contests are typically a referendum on the president and almost always cost his party congressional seats. This year appears no different. If anything, the achievements of Obama and congressional Democrats — passing massive economic stimulus and healthcare bills, rescuing the auto industry, cracking down on Wall Street — sharpened the opposition, giving birth to the “tea party” movement that promised to usher a number of insurgents into Congress.

Compounding problems for the president and his party, this year’s races were run in a brutal economic climate, following the worst downturn since the Great Depression. At nearly 10%, the jobless rate is the second highest it has been for a midterm election in the last 50 years.

“If unemployment was 7.4%, or even 8.1%, but dropping, and people clearly perceived that things were getting better, then Democrats would take some losses,” said Tim Hibbitts, an independent pollster in Oregon. “But not the potential catastrophe they’re facing.”

A look at the national map showed the party’s dire circumstances.

Of 100 or so House seats that looked at least marginally competitive, Democrats were on the defensive in all but a handful. Some of the party’s most durable incumbents — including committee chairmen Barney Frank of Massachusetts, Ike Skelton of Missouri and John M. Spratt Jr. of South Carolina — were in trouble or, at the least, facing their toughest reelection fight in years.

Seats that would normally be out of Republican reach, in districts Obama easily carried two years ago, were in the toss-up category or leaning Republican, leading some independent analysts to forecast GOP gains of as many as 70 seats or more.

A swing of even 60 seats would be the largest midterm shift since 1938.

Both parties campaign to the finish line

A terrorist attack apparently aimed at two Jewish centers in Chicago was thwarted when two packages the size of bread boxes containing explosives were intercepted in Europe and the Middle East, President Obama and counterterrorism officials announced Friday.

The packages, which had originated from Yemen, were found on cargo planes after a tip from an official in Saudi Arabia. The targets were a synagogue and another Jewish center on the North Side of Chicago, a U.S. official said.

As they launched a terrorism investigation on three continents, authorities said suspicion fell in particular on Al Qaeda’s affiliate in Yemen, which has been linked to the attempted bombing of a Detroit-bound U.S. airliner on Christmas Day. The explosive material found in the two packages is the same as that used in the failed airliner attack, according to a U.S. official.

Authorities discovered the packages late Thursday in UPS cargo planes that had flown from Yemen to an airport in East Midlands, England; and Dubai, United Arab Emirates.

An initial examination of the packages found that “they do apparently contain explosive materials,” Obama said in an announcement from the White House on Friday afternoon. Officials said it was still uncertain whether the devices were operational or whether they were to be picked up and activated by someone in Chicago. One official said federal law enforcement authorities believe the latter scenario to be the most likely.

The events “underscore the necessity of remaining vigilant against terrorism,” the president said. He warned that authorities believe Al Qaeda in the Arabian Peninsula, the Yemen-based group, “continues to plan attacks against our homeland, our citizens and our friends and allies.”

A federal law enforcement official said the cargo packages resembled the kind of smaller but deadly attacks recently urged by Anwar Awlaki, the American-born radical Muslim cleric thought to be living in Yemen. Awlaki sent e-mail to U.S. Army Maj. Nidal Malik Hasan encouraging him to militant activity before the November attacks at Ft. Hood, Texas, in which Hasan is suspected of killing 13 fellow soldiers. The cleric is also suspected of being behind the Christmas Day airliner plot allegedly carried out by Nigerian Umar Farouk Abdulmutallab.

“He is pushing the less sensational,” the official said, asking not to be identified because the investigation is continuing. “There appears to be a good amount of debate within Al Qaeda, and Al Awlaki is pushing for more hits, but on a smaller scale. He also believes that even when attacks are scrubbed or foiled, they nonetheless are successful if it terrorizes the United States.”

Federal authorities searched cargo planes at airports along the Eastern seaboard on Friday as well as a delivery truck in Brooklyn, N.Y., but found no explosives.

An Emirates Airline passenger jet carrying cargo from Yemen was escorted from the Canadian border to New York City by two military jets, in what U.S. officials described as a precautionary measure. A package aboard the passenger plane appeared similar to those found in England and Dubai, officials said, but was found not be contain explosives.

John Brennan, Obama’s counterterrorism advisor, said the explosives “were in a form that was designed to try to carry out some type of attack.”

A federal law enforcement official said initial reviews of the two suspicious cargo packages showed that the one found in England apparently contained a printer or ink toner cartridge with “some kind of white powder” and syringes and wires. He said the package uncovered in Dubai apparently contained cellphone components and a timer. He cautioned that both were still being evaluated and that no firm conclusions had been made.

Obama said that Brennan had spoken with the president of Yemen, who had pledged full cooperation in the investigation.

According to officials, the White House called a 1 a.m. meeting Friday to evaluate the cargo package intelligence, which included video participation with Homeland Security officials. They said the White House decided it was “good enough intelligence” to alert allies in Europe to start checking cargo packages coming from Yemen and bound for the U.S.

At 3 a.m., they said, the U.S. ordered every package from Yemen headed for the U.S. to be pulled off planes and inspected.

Homeland Security officials took a series of steps to enhance security, including heightened cargo screening and additional safety measures at U.S. airports. “Passengers should continue to expect an unpredictable mix of security layers that include explosives trace detection, advanced imaging technology, canine teams and pat downs, among others,” Homeland Security officials said.

A Jewish Federation of Greater Chicago spokeswoman said the group was “taking appropriate precautions” and was “advising our local synagogues to do likewise.” One of the targets was a Jewish congregation that meets at a Unitarian church, according to a U.S. official.

Oren Segal, director of the Anti-Defamation League’s Center on Extremism in Washington, said Rahm Emanuel has been the focus of some attention on extremist blogs since long before he resigned as White House chief of staff to run for Chicago mayor. Segal said that vitriol on message boards peaked when Obama named Emanuel his top aide in early 2009.

The two incidents highlight a known vulnerability in the air cargo industry, one that has been the subject of extensive discussion between the Transportation Security Administration and the industry for several years.

The federal government has mandated in recent years that all cargo on passenger aircraft be screened, a goal that was achieved only this August. But the issue of parcels aboard cargo-only aircraft has been far more difficult to resolve. As far back as March 2009, the industry warned Congress it would not be able to meet the August deadline that 100% of cargo would be screened.

A TSA official acknowledged Friday that not all cargo inbound from abroad is screened and that the cargo that does get screened is handled differently than passenger luggage, which is subject to X-ray. That means that the two suspicious packages may not have been subject to screening when they were originally loaded in Yemen.

paul.richter@latimes.com

richard.serrano@latimes.com

bbennett@tribune.com

Christi Parsons in the Washington bureau and Times staff writer Ralph Vartabedian in Los Angeles contributed to this report.

Explosives found in two U.S.-bound packages, thwarting terrorist attack

Weeks before the Deepwater Horizon explosion, oil company BP and subcontractor Halliburton were aware of test results showing that the cement mixture designed to seal the well was unstable — but they used it anyway, President Obama’s special commission investigating the environmental disaster reported Thursday.

The findings shed new light on troubles with the cement job on BP’s Macondo well in the Gulf of Mexico, which exploded April 20, killing 11 workers and causing the largest offshore oil spill in U.S. history. The cement is supposed to secure the well pipes and keeps oil and gas from flowing up the well.

Legal experts said the information could bolster plaintiffs’ cases in the multitude of spill-related lawsuits by helping to show that BP acted with gross negligence leading up to the spill. This could, among other issues, greatly increase the multibillion-dollar penalties BP might have to pay for violation of the Clean Water Act.

“There’s no question that it’s important evidence,” said Charlie Tebbutt, an attorney for the Center for Biological Diversity, which has filed a lawsuit seeking $19 billion under the Clean Water Act. “It serves to confirm the previous reports of significant problems with the exploration and production of the well.”

The information was included in a letter to Obama’s commission by Fred. H. Bartlit Jr., its chief counsel.

David Uhlmann, a law professor at the University of Michigan who formerly headed the Justice Department’s Environmental Crimes Section, said the findings make it appear more likely that Justice officials will file criminal charges not only against BP and Transocean Ltd., the rig’s owner, but also against Halliburton, the Texas oilfield services giant once headed by former Vice President Dick Cheney.

“There have been questions all along about the integrity of the cement job, and today those questions loom larger and are closer to being answered,” Uhlmann said. “And those answers are not good ones for Halliburton.”

In the letter, Bartlit said that his team recently asked Halliburton to turn over samples of the cement materials like those used at the well. The materials were tested by Chevron employees at a Houston lab. The employees were “unable to generate stable foam cement” from the materials, meaning the cement would not be strong enough to keep the well sealed.

Bartlit then asked Halliburton to turn over all of the tests it had run on the mixture.

Those documents showed that Halliburton had conducted four “stability tests” of the mixture. The first two were run in February 2010 using a slightly different recipe than the one eventually used at the well. Both of these tests indicated that the mix was unstable.

Halliburton sent results from only one of those tests to BP in an e-mail March 8.

“There is no indication that Halliburton highlighted to BP the significance of the foam stability data, or that BP personnel raised any questions about it,” Bartlit wrote.

Two more tests were conducted by Halliburton in April. The first test, conducted about seven days before the blowout, again showed the mix to be unstable, although Bartlit said it may have been improperly conducted. These results were reported internally at Halliburton, Bartlit said, “though it appears that Halliburton never provided the data to BP.”

Bartlit said Halliburton apparently began a fourth test, and after modifying the testing procedure, found the cement to be stable.

“We are not yet certain when Halliburton reported this data internally or whether the test was even complete prior to the time the cement job was poured at the Macondo well,” he wrote. “Halliburton reported this data to BP after the blowout.”

Bartlit said that because BP did not have the test results, “the cement job may have been pumped without any lab results indicating that the foam cement slurry would be stable.”

BP officials did not return a call for comment Thursday. A Halliburton spokeswoman said company officials were reviewing the report.

Late Thursday, Halliburton issued a statement. Its February tests were of a different slurry mixture, the company said, and its first April test was “irrelevant because the laboratory did not use the correct amount of cement blend. Furthermore … BP was made aware of the issues with that test.”

Halliburton said its second April test used the agreed-upon mixture and showed it was stable. But BP changed the mixture that was actually used in the well, Halliburton said, and “a foam stability test was not conducted” on the new formulation.

The cement job was not the only problem that plagued the well on the evening of April 20, and Bartlit did not say that it was the only cause of the blowout.

The blowout preventer — a massive device that was supposed to shut off the well off in case of a dangerous geyser of oil and gas — also failed. Other human errors have been alleged as well. On the day of the blowout, BP canceled a test called a “cement bond log” designed to discover cement defects, saving more than $100,000.

Jesse Gagliano, a Halliburton technical advisor, also told federal investigators that BP risked causing a “severe gas flow problem” when they decided to use fewer devices called “centralizers” rather than the 21 he recommended.

Critics of BP and its partners on the Macondo project jumped on the findings to demand greater oversight of the companies involved in the accident and of the oil industry. Rep. Edward J. Markey (D-Mass.), chairman of the House Energy and Environment Subcommittee, said the counsel’s findings underscored the need for BP’s new chief executive, Bob Dudley, to appear before Congress, which he has recently declined to do.

“The fact that BP and Halliburton knew this cement job could fail only solidifies their liability and responsibility for this disaster,” Markey said in a statement. “We now know what BP and Halliburton knew, and when they knew it. And now we know they did absolutely nothing about it.

The report’s release sent Halliburton shares plunging 16%, to less than $30 in New York trading, but it recovered somewhat to close at $31.68, down $2.74, or 8%. BP’s American shares, however, closed at $40.60, up 1.25%.

Richard.fausset@latimes.com

Nbanerjee@tribune.com

Fausset reported from Atlanta and Banerjee reported from Washington. Rong-Gong Lin II contributed to this report from Los Angeles.
Tests warned of cement problems before well’s blowout

President Obama laid out a broad case Saturday for rejecting Republican candidates in the upcoming midterm elections, accusing his political opponents of cynically refusing to cooperate in difficult times while accepting help from secretive special-interest groups pumping millions of dollars into various campaigns.

Obama spoke at a rally for a longtime political ally and friend, Massachusetts Gov. Deval Patrick, who is locked in a tough reelection campaign against Republican Charlie Baker. The president also spent part of his quick trip to Boston at a fundraising event for the Democratic Senatorial Campaign Committee. A Democratic official said people paid up to $30,400 apiece to attend a VIP reception and have their picture taken with the president.

With unemployment at nearly 10% and people anxious about job security, Obama has struggled to articulate a single compelling message for keeping Democrats in power. At the Patrick event, he rolled out a range of arguments for voting against Republicans on Nov. 2.

While he and fellow Democrats labored to fix the economy, he said, the Republican leadership watched from a safe distance, hoping they would founder.

Speaking to more than 15,000 people at the Hynes Convention Center, Obama said that Democrats were enmeshed in the “grinding, frustrating work of delivering change inch by inch, day by day.”

Republicans, in turn, made the “tactical decision” that if they stay “on the sidelines and don’t lift a finger to help … they figured they could ride people’s anger and frustration all the way to the ballot box,” Obama said.

Obama reverted to a favorite metaphor, saying he and other Democrats had been down in the ditch trying to get the battered car going while Republicans fanned themselves and enjoyed Slurpees.

Now that the metaphorical car’ is on the mend, “they can get in and ride with us if they want, but they’ve got to get in the back seat,” Obama said.

The president’s speech was interrupted by hecklers who shouted their disapproval over his AIDS funding policies. That touched off a counter-chant of “four more years” from supporters of Obama and Patrick.

Obama, wearing a jacket but no tie, stared at the demonstrators, who held up a sign that read, “Keep the promise.”

“Take a look at what the Republican leadership has to say about AIDS funding,” the president challenged.

Obama renewed a charge that special-interest groups aligned with the Republicans were spending huge sums of money in the campaign without revealing their donors. Because the source of funds is unknown, “foreign-controlled corporations” could be underwriting the TV ad buys, Obama said.

“They don’t even have the courage to stand up and disclose their identity,” he said. “They could be insurance companies, they could be banks, they could even be foreign-controlled corporations — we will never know.”

The White House has faced a backlash over such attacks. Critics have said that Democrats have yet to produce concrete evidence that foreign money is fueling campaign attack ads.

They’ve also said that with the economy in such wretched shape, Obama is distracting voters from deeper problems by focusing on campaign finance disclosure.

Obama’s visit to Boston testifies to his special connection to the Massachusetts governor.

Patrick worked in the Clinton administration in the 1990s, yet when it came time to endorse a candidate in the Democratic presidential primary in 2008, he chose Obama over rival Hillary Rodham Clinton.

A recent poll by Suffolk University showed Patrick leading Baker by 7 points.

Partisan emotions were strong at the rally. Before Obama spoke, the audience heard from Rep. Edward J. Markey, a Massachusetts Democrat.

Markey, in a reference to Delaware Senate Republican candidate Christine O’Donnell, said, “We have gone from Democrats who say, ‘Yes we can!’ to Republicans who say, ‘Yes, wiccan.’”

O’Donnell has said that when she was young, she “dabbled” in witchcraft.

With election day about two weeks away, Obama is stepping up his campaign travel, flying across the country to raise money and stump for Democratic candidates. On Sunday he and First Lady Michelle Obama are attending a rally at Ohio State University in what will be the president’s 11th visit to the perennial swing state since he took office.

On Wednesday he leaves the White House for a three-day Western swing that includes stops in Los Angeles, Las Vegas and Portland, Ore.

peter.nicholas@latimes.com
Obama says GOP accepts special-interest money while refusing to cooperate in government

A federal judge in California issued a permanent ban Tuesday on the Pentagon’s “don’t ask, don’t tell” policy on gays and lesbians in the military, ordering the Defense Department to immediately halt any efforts to remove personnel because of their sexual orientation.

The government has 60 days to appeal the ruling, which gives the administration until after the midterm election next month to make a decision. But it also presents a problem for President Obama as he tries to rally his Democratic base.

As a presidential candidate, Obama said he would work to do away with the policy. But should the Justice Department appeal the ruling, it could anger many of the president’s liberal supporters, something Obama and congressional Democrats can ill afford.

In a separate case that posed a similar problem, the administration decided Tuesday to appeal two court rulings in Massachusetts that found unconstitutional the federal definition of marriage as between a man and a woman.

The administration filed a notice of appeal to protect the 1996 Defense of Marriage Act, or DOMA, which bars gay marriages, although Obama opposes the law. A Justice Department spokeswoman told the Associated Press that the administration was obligated to defend federal laws when challenged in court.

“As a policy matter, the president has made clear that he believes DOMA is discriminatory and should be repealed,” said Justice Department spokeswoman Tracy Schmaler. “The Justice Department is defending the statute, as it traditionally does when acts of Congress are challenged.”

Tony Perkins, president of the conservative Family Research Council, called on the administration to immediately appeal the “don’t ask, don’t tell” decision. Otherwise, he said, it would “only further the desire of voters to change Congress” out of anger at “activist judges and arrogant politicians.”

Justice Department officials said no decision had been made, though the government has known for a month that the ruling might be coming. U.S. District Judge Virginia A. Phillips in Riverside said on Sept. 9 that she considered the policy unconstitutional.

At the Pentagon, spokeswoman Cynthia O. Smith said the ruling was under review. Other Pentagon officials said a task force created to examine the issue had not completed its study and that town hall meetings with military families were continuing, as was an online opinion survey. If there is no appeal, they said, the ruling would short-circuit that effort.

The “don’t ask, don’t tell” policy was enacted by Congress in 1993 in an effort to reform the military’s practice of searching out and discharging gay personnel.

Under the policy, gays and lesbians could serve in the military as long as they kept their sexual orientation secret. More than 13,000 service members have been discharged under “don’t ask, don’t tell.”

In her three-page order Tuesday, Phillips declared that the policy “infringes on the fundamental rights of United States service members and prospective service members.”

She also said it violated due process and freedom of speech, and did not allow targeted service members “to petition the government for redress of grievances” to fight for their jobs if they were outed as homosexuals.

Phillips ordered the military to immediately stop “enforcing or applying” the policy and implementing the regulations “against any person under their jurisdiction or command.”

She further ordered them “immediately to suspend and discontinue any investigation, or discharge, separation or other proceedings” that were underway.

If the government does not appeal, the question will be whether a district court judge can unilaterally invalidate a longstanding policy of the United States military.

“A federal judge always has the power to declare a law unconstitutional,” said Erwin Chemerinsky, dean of the UC Irvine School of Law.

“The interesting question concerns a nationwide injunction. On the one hand, I think she is on strong ground in doing so. On the other hand, one district judge doesn’t have the authority to bind judges in other districts or circuits. They can decide for themselves. The key question is whether the Obama administration will appeal.”

There also is an effort underway in Congress to repeal the law. The House this year voted to repeal the act, as did the Senate Armed Services Committee. But Republicans blocked action on the Senate floor.

Drew Hammill, a spokesman for House Speaker Nancy Pelosi (D- San Francisco), said the speaker welcomed the judge’s order and “continues to believe, until the Senate can act on the repeal of this policy and send it to the president’s desk, the administration should place a moratorium on all dismissals under this policy.”

The judge was ruling in a case brought by the Log Cabin Republicans, the nation’s largest gay GOP political organization. In the trial in July, Justice Department lawyer Paul G. Freeborne argued that Congress and not the courts should decide the fate of “don’t ask, don’t tell.”

Many gay and lesbian groups praised the order, but Aaron Tax, legal director for the Servicemembers Legal Defense Network, predicted that the government would appeal.

With that in mind, he said, homosexual “service members must proceed safely and should not come out at this time.”

richard.serrano@latimes.com

David Cloud in the Washington bureau contributed to this report.
Judge orders halt to ‘don’t ask, don’t tell’

WASHINGTON — President Obama made a new pitch for his $50-billion “roads, railways and runways” program Monday morning, saying the need to upgrade the nation’s infrastructure capacity is critical and that American competitiveness in the 21st century depends upon swift action.

Clogged roads, airways and other infrastructure chip away at worker productivity, Obama said, and the longer the country waits to fix it, “the deeper our competitive edge erodes.”

Speaking to reporters in the Rose Garden, Obama pitched the plan almost entirely in terms of its benefit to the economy — though he also alluded to the politics of the moment, noting the steadfast Republican opposition to most of his current plans.

In a “season of choices,” Obama said, one of the decisions Americans must make is between “decline and prosperity.”

Earlier Monday, the administration issued a new report estimating the spending program would create a raft of new middle-class jobs in manufacturing, construction and retail and thereby help boost the economy. More than half of the new jobs would come in construction, where unemployment figures are now higher than 17 percent, according to the report.

First unveiled on Labor Day, the plan figures into the election picture for Democrats, who are under pressure to show how the economy will improve under Obama’s continued stewardship and theirs.

Still, to pass the measure, the president needs to win over Republicans, who generally have opposed his suggestions for government spending as a way out of the country’s economic malaise. And a change of heart did not seem imminent on Monday morning.

If the president were serious about passage, said one GOP aide, it would have been easier if he’d held Monday’s event before the Senate left town to campaign for midterm elections.

“Because the November lame-duck session is all booked up, the very earliest the Senate could consider the president’s proposal now would be December,” said Don Stewart, spokesman for Senate Republican Leader Mitch McConnell of Kentucky. “And that’s assuming that the committees could/would want to act in time — a huge ‘if.’ “

cparsons@tribune.com
Obama renews push for $50-billion ‘roads, railways and runways’ program