.- .- CONFIDENTIAL RK PRODUCT April 19, 1996 MEMORANDQM T0: Jerry Fernandez Ed Keyser FR: Terry Franan John Hanrahan RE: Bridgestone/Firestone; Speci?c Issues Proposal This memorandum outlines investigative steps we would propose to take on the three separate issues we have discussed relating to BridgestonelFirestone and on one issue relating to Bayou Steel, prepared pursuant to your request and at your direction to assist in your continuing corporate campaigns. We have also included separate budgets to cover costs associated with each issue, and have taken into account the 20 percent discount in fees we have provided to you on previous matters. BRIDGESTOEE 1N HEM We would focus on determining the current status of Bridgestone?s rubber plant in Monrovia, and more importantly, whether rebel leader Charles Taylor continues to occupy the plantation and what role, if any, Bridgestone may have played in supporting him. As you may recall, we reported last spring that Bridgestone had been accused by Lamini A Waritay, the Liberian Minister of Information, with supplying Taylor with ammunition and allowing him to manufacture explosives within the company?s compound. These allegations were the basis of what Waritay called an ?impending investigation? of the company by his government. JAMES MINTZ Gaour. INC. 200 WEST 57m STREET Sun: 503 0 New YORK. NY 0 10019 0 PHONE: 212-489-7100 0 Fax: 212-489-7037 4301 AVENUE N.W. - Sons 137 0 WASHINGTON. D.C. 0 20008 0 PHONE: 202-364-3100 0 Fax: 202-364-0886 Page 2 In ?rrther developing this issue, we recommend the following steps: Attempt to determine if the Liberian government did indeed complete its investigation of Bridgestone?s relationship with Taylor and his rebel troops. We would contact the US. State Department?s Liberia Desk to determine if the investigation was conducted and if a copy of the ?ndings could be obtained; further, we would approach several con?dential sources, including contacts at Human Rights Watch, the publication Africa Con?den?a_l, and certain Liberian expatriates now residing in the greater Washington, DC. area. We would also attempt to learn up-to-date information on occurrences at the plantation ?'om news sources presently in Monrovia. Conduct limited database research, with emphasis on the Nashville newspapers, looking for articles on the Bridgestone plant?s current situation in Liberia and any references to Taylor. Review State Department brie?ngs on Liberia over the past several months, comparing those updates to what Bridgestone spokesperson Trevor Hoskins was reporting to the press at the time. Identify for potential interview former Bridgestone employees in Monrovia, including plant managers and chemists. Given the turmoil in the area over the past several years, it is quite possible that the turnover has been great. Attempt to learn from the consultants, hired by the Liberian Government last year to look for a potential buyer of the plant, what they may have learned about Bridgestone?s use of the plant and why the government did not want ownership returned to the company. Budget We propose an initial phase budget of $5,000 (the total a?er the discount is ?gured in) for the Liberia related investigation. Ifadditional work is required on this matter a?er using the initial $5,000, we would propose a Phase II budget at that time. UPCO 1ND 500 We would aim to identify events to be attended by owners, drivers, crew, signi?cant sponsors, corporate leaders, public o?cials and other key Indianapolis 500 loyalists that are not on the o?icial schedule of events. This would include, where possible, hotel accommodations, private parties, speaking engagements and other public relations events leading up to the race day. Page 3 In developing this to-do list, we did contact a racing enthusiast who reported that there is an ongoing struggle between Indy 500 and a recently established group called the Indy Racing League, which is attempting to develop ?rrther a new racing circuit, where such races would be set up at a series of regional tracks. This is being pursued as a way of creating more opportunities for reaping cash prizes by both drivers and owners alike. The inaugural event of the Indy Racing League was held in January 1996 at a new racetrack built by Disney in Orlando, Florida. The annual race is called the Indy 200 at Walt Disney World. It would be critical to learn if Bridgestone has lent its support to this league and its proponents, and in doing so, whether the company'has lost friends, or possibly made new enemies. In further developing the Indy 500 issue, we would suggest the following: 1) Review appropriate Indianapolis press by racing columnists and racing industry publications for leads on what are the traditional spots where drivers and their entourage are lodged, as well as wined and dined. A review of such press a few weeks before this year?s Indy 500 and following the 1995 Indy 500 might provide a good start. 2) Sign up to receive the special daily press brie?ngs ?'om the Indy 500 press o?ice, and other advance press information, relating to scheduling details for pre-race activities for both of?cial and uno?icial events. 3) Review appropriate press for stories relating to the controversy surrounding the new racing circuit. Identin those who support and oppose its establishment. Determine who sits on the Board of the Indy 500 for potential contact regarding Bridgestone. 4) Interview (or, ifnecessary, hire for a few hours) a racing consultant, to whom we could be introduced by a source, who could provide us with information as to the culture of the Indy 500 and the overall auto racing picture in the United States. 5) Contact other individual organizations, Of?ce of Tourism, omce of Economic Development and Chamber of Commerce, for promotional events they may be planning for corporate sponsors and others. - 595182! We propose a budget of $5,000 (the total after the discount is ?gured in) for work on this Indy SOD-related matter. Page 4 QVERALL EXAMINATION OF THE RACING 1N QUSTRY In attempting to assist you in learning who makes up, controls, underwrites and overall promotes the auto racing industry in the United States, we would suggest that we interview a racing consultant noted above and develop a sense of the industry and its inherent issues before determining a to-do list and budget on this particular assignment. We do have access to a consultant whom we could contact to assist in such a quick-study proposal. We suggest that a series of interviews with that source, in addition to appropriate database research in recent industry publications, would provide a good foundation from which to draft an issue-oriented proposal for your consideration. BAYOU TEEL: BY Following are steps we would propose to take to provide information of interest to you regarding Stanley S. Shuman of Allen and Company in connection with the Bayou Steel corporate campaign. Camping Contribgtions Obtain reports of campaign contributions made by Shuman to federaL New York State and New York City campaigns for the last 10 years. Federal contributions can be obtained on-line, as can some New York state legislative contributions, but others for gubernatorial, mayoral and city council campaigns would require research at elections o?ices in Albany and New York City. [Although we did not discuss it in our telephone conference, we could also determine whether Allen and Company has a Political Action Committee and research its contributions] Connections in the Jewish Communig Through selective on-line database searches and contacts with sources knowledgeable as to the New York Jewish community, determine whether Shuman is active in any secular or religious Jewish a??airs, and who are his friends and associates. Seam View of Shumm Allen Ed Review for leads any news articles you have already accumulated regarding Shuman and Allen and Company and, where necessary, conduct additional limited on-line database research regarding them. Page 5 The limited searches would include determining whether Shaman is still on New York City?s Control Board (more recently called the State Control Board) and who has appointed him and reappointed him to that board, and who has served with him on that board recently and in the past; any continuing connections to the Harvard Endowment (which is run by the Harvard Management Company), which surfaced in the takeover e?'ort regarding J.C. Nichols Company in Kansas City that you referred to; and other issues that might be developed ?om other sources. Conduct public record searches on-line and in person in state and federal courts in Manhattan to identify any litigation involving Shuman and/or Allen and Company that might identify persons, problems, issues, etc. of possible interest to you. Conduct database research to determine on what other boards Shuman might sit. Contact sources in New York ?nancial and business community for general views of Shuman and Allen and Company, including looking for client base, allies, opponents, issues and other matters of possible interest to you. Research the various books written about Rupert Murdoch for references to Shuman to identify other possible chants, business associates, allies, opponents, deals, etc. Likewise, research books about New York state and city politics, including any biographies of Mario Cuomo, Ed Koch, David Dinkins, Rudolph Giuliani, Geraldine Ferraro, etc. Review indexes for The Voice going back to the late 19703 for any articles about Shurnan and/or Allen and Company. (The is not on?line, but must be researched at the New York City library.) Murdoch, of course, owned the Voice for a number of years in the late 19705 and early 19803, but it retained its editorial independence and often wrote exposes of him and his allies - so there is a good chance that its reporters have written about Shuman, who helped Murdoch acquire the yoice. We would note that we have contacts with some New York reporters (including former yrllage Voice sta??ers) who, with your permission, we could contact for any leads regarding Shuman. We recognize that such approaches to reporters have to be handled discreetly, so we would want to discuss this matter thoroughly with you before we take any steps. Page 6 Budget We propose a budget of $5,000 (the total after the discount is ?gured in) for work on this Shaman matter. Should additional work be required that exceeds this amount, we would propose a Phase II budget to you.