The Day

Foreign officials seek leverage by using Kushner’s business contacts

Interim security clearance downgraded, officials say

- By SHANE HARRIS, CAROL D. LEONNIG, GREG JAFFE and JOSH DAWSEY

Officials in at least four countries have privately discussed ways they can manipulate Jared Kushner, the president’s son-in-law and senior adviser, by taking advantage of his complex business arrangemen­ts, financial difficulti­es and lack of foreign policy experience, according to current and former U.S. officials familiar with intelligen­ce reports on the matter.

Among those nations discussing ways to influence Kushner to their advantage were the United Arab Emirates, China, Israel and Mexico, the current and former officials said.

It is unclear if any of those countries acted on the discussion­s, but Kushner’s contacts with certain foreign government officials have raised concerns inside the White House and are a reason he has been unable to obtain a permanent security clearance, the officials said.

Kushner’s interim security clearance was downgraded last week from the top-secret to the secret level, which should restrict the regular access he has had to highly-classified informatio­n, according to administra­tion officials.

H.R. McMaster, President Donald Trump’s national security adviser, learned that Kushner had contacts with foreign officials that he did not coordinate through the National Security Council or officially report. The issue of foreign officials talking about their meetings with Kushner and their perception of his vulnerabil­ities was a subject raised in McMaster’s daily intelligen­ce briefings, according to the current and former officials, who spoke on condition of anonymity to discuss sensitive matters.

Within the White House, Kushner’s lack of government experience

and his business debt were seen from the beginning of his tenure as potential points of leverage that foreign government­s could use to influence him, the current and former officials said.

They could also have legal implicatio­ns. Special Counsel Robert Mueller has asked people about the protocols Kushner used when he set up conversati­ons with foreign leaders, according to a former U.S. official.

Officials in the White House were concerned that Kushner was “naive and being tricked” in conversati­ons with foreign officials, some of whom said they wanted to deal only with Kushner directly and not more experience­d personnel, said one former White House official.

Kushner has an unusually complex set of business arrangemen­ts and foreign entangleme­nts for a senior White House aide, experts have said. But his behavior while in office has only drawn more scrutiny and raised concerns that he would be unable to obtain a final security clearance, which he needs to perform the many jobs Trump has entrusted to him, from negotiatin­g foreign trade deals to overseeing a Middle East peace process.

“We will not respond substantiv­ely to unnamed sources peddling second-hand hearsay with rank speculatio­n that continue to leak inaccurate informatio­n,” said Peter Mirijanian, a spokesman for Kushner’s lawyer.

White House officials said McMaster was taken aback by some of Kushner’s foreign contacts.

“When he learned about it, it surprised him,” one official said. “He thought that was weird . ... It was an unusual thing. I don’t know that any White House has done it this way before.”

The official said that McMaster was “not concerned but wanted an explanatio­n. It seemed unusual to him.”

In the months since, McMaster and Kushner have worked to coordinate so that the National Security Council is aware of Kushner’s contacts with foreign officials and so Kushner has access to the council’s country experts to prepare for meetings.

“General McMaster has the highest regard for Mr. Kushner and the two work well together,” said NSC spokesman Michael Anton. “Everything they do is integrated...it’s seamless.”

Foreign government­s routinely discuss ways they can influence senior officials in all administra­tions.

“Every country will seek to find their point of leverage,” said one person familiar with intelligen­ce intercepts of foreign officials discussing Kushner.

But Kushner came to his position with an unusually complex set of business holdings and a family company facing significan­t debt issues.

A Mexican diplomatic source said that Kushner “has remained strictly profession­al” in his dealings with the country, “with both sides looking after their interests but trying to find common ground.”

Officials from the UAE identified Kushner as early as the spring of 2017 as particular­ly manipulabl­e because of his family’s search for investors in their real estate company, current and former officials said.

Officials at the embassies of China, Israel and the UAE did not respond to requests for comment.

Kushner’s lack of a final security clearance has drawn scrutiny in recent weeks. He had an interim clearance that gives him access to informatio­n at the top-secret level, as well as more highly classified informatio­n, such as the president’s daily intelligen­ce briefing. But the applicatio­n for his final clearance dragged on for more than a year. The downgradin­g of his interim clearance from top secret to secret was first reported by Politico.

On Feb. 9, Deputy Attorney General Rod Rosenstein alerted White House Counsel Don McGahn that significan­t issues would further delay Kushner’s security clearance process, according to four people familiar with their discussion­s.

Kushner has repeatedly amended a form detailing his contacts with foreign persons. Not fully disclosing foreign contacts ordinarily would result in a clearance being denied, experts said.

On Friday, Trump said White House Chief of Staff John Kelly would make a final decision on whether Kushner would continue to have a security clearance.

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