$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
As he stood in the opulent marble foyer of a Fifth Avenue
mansion late last month, greeting the coterie of prominent guests
arriving at his private art gallery, Ronald s. Lauder was doing
more than just being a gra-cious host.
To celebrate the 10th anniversary of the Neue Galerie, Mr.
Lauders museum of Austrian and German art, he exhibited many of the
trea-
sures of a personal collection valued at more than $1 billion,
including
works by Van Gogh, Czanne and Matisse, and a Klimt portrait he
bought five years ago for $135 million.
Yet for Mr. Lauder, an heir to the Este Lauder fortune whose net
worth is estimated at
By DAVID KOCIENIEWSKI
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3
$6 beyond the greater New York metropolitan area. $5.00
Late Edition
VOL. CLXI . . No. 55,602 2011 The New York Times NEW YORK,
SUNDAY, NOVEMBER 27, 2011
U(D5E71D)x+&!{!/!=!#An engineer and naturalized
Americancitizen found jail and then limbo after re-turning to
China, highlighting the perilsof doing business there. PAGE 6
INTERNATIONAL 6-14
Perils of Commerce in ChinaCalifornias leaders have rallied
arounda plan to build a high-speed rail line de-spite cries of
boondoggle from theprojects critics. PAGE 18
NATIONAL 18-28
Two Sides on a RailroadMany major gun makers, including
the195-year-old Remington Arms, have qui-etly passed into the hands
of one privatecompany, the Freedom Group. PAGE 1
SUNDAY BUSINESS
Stealth Giant of Gun Industry Nicholas D. Kristof PAGE 11OPINION
IN SUNDAY REVIEW
By SCOTT SHANE
WASHINGTON At a time ofpartisan gridlock in the capital,one
obscure cause has drawn astellar list of supporters fromboth
parties and the last two ad-ministrations, including a dozenformer
top national security offi-cials.That alone would be unusual.
What makes it astonishing is theobject of their attention: a
fringeIranian opposition group, long anally of Saddam Hussein, that
isdesignated as a terrorist organ-ization under United States
lawand described by State Depart-ment officials as a repressive
cultdespised by most Iranians andIraqis.The extraordinary lobbying
ef-
fort to reverse the terrorist desig-nation of the group, the
Mujahe-deen Khalq, or Peoples Mujahe-deen, has won the support of
twoformer C.I.A. directors, R. JamesWoolsey and Porter J. Goss;
aformer F.B.I. director, Louis J.Freeh; a former attorney gen-eral,
Michael B. Mukasey; Presi-dent George W. Bushs firsthomeland
security chief, TomRidge; President Obamas firstnational security
adviser, Gen.James L. Jones; big-name Re-publicans like the former
NewYork mayor Rudolph W. Giulianiand Democrats like the former
Vermont governor HowardDean; and even the former
topcounterterrorism official of theState Department, Dell L.
Dailey,who argued unsuccessfully forending the terrorist label
while inoffice.The American advocates have
been well paid, hired throughtheir speaking agencies and
col-lecting fees of $10,000 to $50,000
for speeches on behalf of the Ira-nian group. Some have
beenflown to Paris, Berlin and Brus-sels for appearances. But they
insist that their mo-
tive is humanitarian to protectand resettle about 3,400
membersof the group, known as theM.E.K., now confined in a campin
Iraq. They say the terrorist la-bel, which dates to 1997 and
then
reflected decades of violence thatincluded the killing of
someAmericans in the 1970s, is nowoutdated, unjustified and
danger-ous.Emotions are running high as
Secretary of State Hillary Rod-ham Clinton completes a reviewof
the terrorist designation. Thegovernment of Prime Minister
Across Party Lines, Lobbying for Iranian Exiles on Terrorist
List
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Mujahedeen Khalq supporters and Secretary of State Hillary
Rodham Clinton in Washington.
Continued on Page 10
By JEREMY W. PETERS
Inside the debate halls, theclash may be Republican
versusRepublican. But offstage, con-servatives are mounting a
unifiedand expensive air assault on thecandidates common
opponent:President Obama.Nearly a year before Election
Day, Republican presidential can-didates and conservative
actiongroups are already spendingheavily on television
advertisingaimed at casting Mr. Obama as afailure. Their tactics,
the aggressive
and sometimes misleading kindnot typically used until much
fur-ther along in a campaign season,have led to a spat with
Demo-crats in what is shaping up to bethe most costly election
advertis-ing war yet.In an advertisement from Gov.
Rick Perry of Texas that is nowrunning on national cable
televi-sion, Mr. Perry looks directly intothe camera and declares:
Oba-mas socialist policies are bank-rupting America. We must
stophim now.A new commercial from Mitt
TV Attack AdsAim at ObamaEarly and Often
Continued on Page 4
By DAVID KOCIENIEWSKI
As he stood in the opulent marble foyerof a Fifth Avenue mansion
late last month,greeting the coterie of prominent guestsarriving at
his private art gallery, RonaldS. Lauder was doing more than just
beinga gracious host.To celebrate the 10th anniversary of the
Neue Galerie, Mr. Lauders museum ofAustrian and German art, he
exhibitedmany of the treasures of a personal col-lection valued at
more than $1 billion, in-cluding works by Van Gogh, Czanne
andMatisse, and a Klimt portrait he boughtfive years ago for $135
million. Yet for Mr. Lauder, an heir to the Este
Lauder fortune whose net worth is esti-mated at more than $3.1
billion, theevening went beyond social and culturalsignificance. As
is often the case with hisactivities, just beneath the surface was
a
stock deal so audacious that Congress lat-er enacted a law
forbidding the tactic, Mr.Lauder has for decades aggressively
tak-en advantage of tax breaks that are usefulonly for the most
affluent.The debate over whether to reduce tax
shelters and preferences for the rich isone of the most volatile
in Washington andwill move to the presidential campaign,now that
repeated attempts in Congress tostrike a grand bargain over
spending cutsand an overhaul of the tax code havefailed. A handful
of billionaires like Warren E.
Buffett and Bill Gates have joined Demo-crats in calling for an
elimination of thebreaks, saying that the current systemadds to the
budget deficit, contributes tothe widening income gap between
therichest and the rest of society, and shifts
shrewd use of the United States tax code.By donating his art to
his private founda-tion, Mr. Lauder has qualified for de-ductions
worth tens of millions of dollarsin federal income taxes over the
years,savings that help defray the hundreds ofmillions he has spent
creating one of NewYork Citys cultural gems. The charitable
deductions generated by
Mr. Lauder whose donations have aid-ed causes as varied as
hospitals and ef-forts to rebuild Jewish identity in EasternEurope
are just one facet of a sophis-ticated tax strategy used to
preserve a for-tune that Forbes magazine says makeshim the worlds
362nd wealthiest person.From offshore havens to a
tax-sheltering
BEBETO MATTHEWS/ASSOCIATED PRESS
In 2006, Ronald S. Lauder, who is now worth $3.1 billion, paid
$135 million for the Klimt painting Adele Bloch-Bauer I.
A Familys Billions, Artfully ShelteredEste Lauder Heirs Tax
Strategies Typify Advantages for the Wealthy
BUT NOBODY PAYS THAT
Fighting for Tax Breaks
Continued on Page 20
By SALMAN MASOOD and ERIC SCHMITT
ISLAMABAD, Pakistan Pa-kistani officials said on Saturdaythat
NATO aircraft had killed atleast 25 soldiers in strikes againsttwo
military posts at the north-western border with Afghani-stan, and
the countrys supremearmy commander called themunprovoked acts of
aggression ina new flash point between theUnited States and
Pakistan. The Pakistani government re-
sponded by ordering the CentralIntelligence Agency to vacate
thedrone operations it runs fromShamsi Air Base, in western
Pa-kistan, within 15 days. It alsoclosed the two main NATO sup-ply
routes into Afghanistan, in-cluding the one at Torkham.NATO forces
receive roughly 40percent of their supplies throughthat crossing,
which runsthrough the Khyber Pass, and Pa-kistan gave no estimate
for howlong the routes might be shutdown. A NATO spokesman said it
was
likely that allied airstrikescaused the Pakistani casualties,but
said an investigation hadbeen ordered to determine thecause. In
Washington, American offi-
cials were scrambling to assesswhat had happened amid
prelimi-nary reports that allied forces inAfghanistan engaged in a
fire-fight along the border and calledin airstrikes. Senior Obama
ad-ministration officials were alsoweighing the implications on
arelationship that took a sharpturn for the worse after a NavySeal
commando raid killed Osa-ma bin Laden near Islamabad in
NATO STRIKES KILLPAKISTANI FORCES,RAISING TENSIONS
AT LEAST 25 SOLDIERS DIE
Anger in Islamabad U.S. Offers Regretsand Vows Inquiry
Continued on Page 10
By ANTHONY SHADID
CAIRO Through elections,protests, government formationsand armed
struggle, Arab coun-tries in an arc from Libya to thegulf were
engaged this past weekmore than ever in attempts not tosimply
overthrow leaders, but todecisively shape the orders thatfollow.The
center of that struggle was
again in Cairo, in the landmarkTahrir Square, where a
protestmovement was revived and doz-ens were killed in violence.
Somehailed it as a new revolution, orthe opening of a front in the
oldone. But it might be bettertermed the end of the beginning,as
within the span of just a week,events breaking out here andacross
the region seemed as sem-inal as any since that burst of op-timism
when the revolts erupted11 months ago.In January, it was an
uprising
against the dictatorship, and nowit is an uprising against what
isleft of that dictatorship, saidSateh Noureddine, a columnist
inthe leftist Lebanese newspaperAl Safir. The fall of regimes
wasnot the revolution, but just a wayto establish the foundations
forthe Arab Spring. Freedom anddemocracy need time. No one expected
the Arab re-
volts to be a simple march ahead,but rarely have things seemed
somuch in flux, with more potentialfor fragmentation, bloodshed
anddisarray. While many analystsdescribe the disturbances as
aninevitable reckoning with the leg-acy of dictatorship, others
worrythe region may face years of un-rest before systems emerge to
re-place the stagnant, American-backed order that held sway for
Post-Uprising,A New BattleArab World StrugglesTo Shape a New
Order
NEWS ANALYSIS
Continued on Page 12
By HOWARD BECK
Six weary figures rose fromtheir chairs early Saturday morn-ing,
their expressions telegraph-ing the conclusion to the
N.B.A.sfive-month labor crisis: Basket-ball is back in business,
with anew labor deal that heavily fa-vors the owners, despite
somelast-minute concessions.The league wanted an overhaul
of its $4-billion-a-year enterprise,and it got it, with a nearly
$300million annual reduction in play-er salaries and a matrix of
newrestrictions on contracts andteam payrolls. The changes meana $3
billion gain for the ownersover the life of the 10-year deal.Before
finally agreeing to those
sacrifices, the players negotia-tors won a handful of
concessionsthat will allow the richest teamsto keep spending on
players, en-suring a more competitive free-agent market.A truncated
66-game schedule
will begin Christmas Day withthree nationally televised
games.For that, officials on both sideswere grateful as they
announceda resolution at 3:40 a.m., on the
N.B.A. ReachesTentative DealTo Save Season
Continued in SportsSunday, Page 4
Fears of fresh clashes werestirred after security forces
killedan unarmed protester. Page 6.
Anger After Death in Cairo
Bombs exploded in and around Bagh-dad, killing at least 11
people, as violencecontinues in the weeks before the Amer-ican
withdrawal. PAGE 10
Bombs Kill at Least 11 in Iraq
Today, periodic clouds and sun,quite mild, high 63. Tonight,
partlyto mostly cloudy, mild, low 52. To-morrow, cloudy, still
mild, high 63.Details, SportsSunday, Page 12.
C M Y K Nxxx,2011-11-27,A,001,Bs-BK,E3