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America Recovers: Giuliani Rejects Saudi Prince's Gift

Aired October 12, 2001 - 06:49   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Millions upon millions of dollars have been donated to help the recovery efforts for the September 11 attacks.

But as CNN's Martin Savidge reports, one high-profile donation ruffled some feathers in New York.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): What began as tour blossomed into a potentially embarrassing international flap. The question is: For who?

Forty-four-year-old Saudi Prince Alwaleed, nephew to King Fahd, and according to "Forbes" magazine the sixth richest man in the world, was taken on a visit of ground zero Thursday.

New York Mayor Rudy Giuliani personally showed his Royal Highness the devastation. Afterwards, Alwaleed presented the mayor with a $10 million check for the Twin Towers Fund, a charitable organization set up to aid the victims of the World Trade Center attack.

But as the check was handed over, the prince's public relations people handed out a statement to the media, which read: "At times like this, we must address some of the issues that led to such a criminal attack. I believe the government of the United States of America should reexamine its policies in the Middle East and adopt a more balanced stance towards the Palestinian cause."

The statement went on.

"Our Palestinian brethren continue to be slaughtered at the hands of Israelis, while the world turns the other cheek."

PRINCE ALWALEED, SAUDI ARABIA: What the Arab world's asking America is to give more attention to the Palestinian cause.

SAVIDGE: Later, Giuliani was clearly angered by any attempt to link U.S. foreign policy to the attack on the World Trade Center.

RUDOLPH GIULIANI, MAYOR OF NEW YORK CITY: There is no justification for it. The people who did it lost any right to ask for justification for it when they slaughtered 4 or 5,000 innocent people. And to suggest that there's a justification for it, only invites this happening in the future.

SAVIDGE: When the mayor was asked if the city and the Twin Towers Fund would keep the $10 million, Giuliani said:

GIULIANI: I don't know yet. I'll have to address that with the State Department.

SAVIDGE: Which the mayor reportedly did. Lodging a complaint about the prince's remarks. But State Department officials offered no advice on what to do with the money. By mid-afternoon, the mayor made up his mind. Saying through a spokeswoman: "We are not going to accept the check, period."

Privately, the mayor's actions have triggered some hand-wringing at the State Department. Officials note that what the Saudis say publicly, versus what they are doing quietly in support of the U.S. coalition on terror, can seem at odds. But they say the kingdom is trying to balance its support against the very real threat of unrest amongst its people. And though not responding specifically to the prince's statements in New York, a senior Bush administration official told CNN Thursday that there are no complaints with the Saudis.

That's not true back in New York, where the mayor's office says the prince's check has been royally rejected.

Martin Savidge, CNN, New York.

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