Washington News

Chen's Status Unclear As Deal Appears To Unravel A deal for Chinese activist Chen Guangchang to leave the US embassy in Beijing was in jeopardy Wednesday amid what the New York Times calls "dramatically conflicting developments" in the saga. Bloomberg News says Chen, who left the US embassy and headed to a local hospital accompanied by US Ambassador Gary Locke, "said he feared for his family and wanted to leave China, upending" the deal, and AFP adds that Chen "accused US embassy officials of pushing him hard to leave the safety of the embassy." He told CNN by phone, "The embassy kept lobbying me to leave and promised to have people stay with me in the hospital, but this afternoon, as soon as I checked into the hospital room, I noticed they were all gone." But the AP says Locke said today that "he could say 'unequivocally' that Guangcheng Chen was never pressured to leave."
The CBS Evening News, which opened with the story, said "what looked like a deft triumph of American diplomacy has turned into an international incident with no end in sight. ... The Chinese had guaranteed Chen's safety and freedom, but now that he is back in Chinese hands, there are reasons for doubt." CBS (Martin) added that earlier, Chen "couldn't thank American diplomats enough. He even phoned Secretary [of State] Clinton to personally thank her. ... Then, as Chen was taken to a Chinese hospital to be reunited with his family the wheels started to come off a deal which was supposed to have allowed him to remain in China free of persecution."
On ABC World News, Martha Raddatz said Chen, "who has become a folk hero in China...thought his safety would be assured by the US. Not anymore. The first pictures out of Beijing today were tender scenes. Chen Guangcheng on his way to a hospital, clutching the US diplomats who took him in after his dramatic escape from house arrest. Hours later, after the diplomats were gone, chaos. Chinese guards shoving reporters away from Chen who told reporters earlier he had felt abandoned by the US and feared for his safety. 'If I didn't leave the embassy, the Chinese authorities would endanger my family,' he said."
On NBC Nightly News, Ian Williams said the deal "now appears to be unraveling." Chen left the US embassy "once he knew US officials said Chinese authorities assured Chen he wouldn't be mistreated and his allegations of abuse would be investigated and that he would get a new home and a university job. But hours later, with US officials gone, Chen apparently had a dramatic change of heart." In an interview with NBC, he said "he had only left the embassy because of threats to his family. 'I demand the US government take concrete action to guarantee my safety and human rights and not consider other interests,' he said. 'I want to leave China, any country is fine.'"
The Los Angeles Times says, "For several hours, it appeared the US and China had struck a deal" that would let Chen "walk free -- and avoid a diplomatic disaster. ... But shortly after Chen was released from the embassy on Wednesday, he appeared to question whether officials had dealt with him in good faith." The "cascade of events left US-Chinese relations in a questionable state and threatened to deliver an embarrassing blow to the Obama administration."
USA Today says the "entire episode occurred shortly after" Secretary of State Clinton and Treasury Secretary Geithner arrived for the annual Strategic and Economic Dialogue "counterparts and threatened to overshadow the talks between the two nations, which already have a delicate relationship. It added a layer of complexity to a diplomatic mission for Clinton that already includes discussions of arms sales, maritime security and delicate trade and intellectual property rights issues."
The New York Times adds that the events left Clinton "to begin her strategic dialogue with her Chinese counterparts on Thursday under a cloud of confusion," and "exposed the Obama administration to criticism from Republicans and human rights groups that it had rushed to resolve a delicate human rights case so that it would not overshadow other matters on the bilateral agenda."
The Washington Post says the "remarkable drama, begun more than a week earlier when Chen escaped from house arrest in his provincial village and made his way toward the US Embassy, culminated not in the diplomatic coup of an American-brokered deal but in confusion."
Editorial Pages Say US Needs To Protect Chen USA Today editorializes, "What happens next is anybody's guess. Once Chen left the embassy, the US lost much of its leverage. But whatever the risk of diplomatic fallout from China, the Obama administration can't simply abandon Chen now. He and his supporters saw the US Embassy as the greatest beacon of hope in their authoritarian country."
The Washington Post , in an editorial written before the deal's seeming collapse, writes, "Having strongly encouraged Mr. Chen to accept the Chinese offer, the administration must ensure that he is treated fairly -- or appear naive and feckless. Already Mr. Chen's supporters and human rights groups are suggesting that the Americans pressured him into a bad deal because of their desire not to disrupt a US-China strategic dialogue."
The Wall Street Journal says in an editorial that the deal would have improved Chen's living conditions, but that the US would need to continue to focus on his well-being and that of other dissidents.

Holder, Sebelius Announce Charges In Massive Medicare Crackdown Attorney General Holder and HHS Secretary Sebelius announced yesterday that federal prosecutors have charged 107 doctors and others in a massive Medicare fraud crackdown, which generated heavy media coverage last night and this morning, including more than a minute of coverage on network newscasts.
ABC World News reported on "the largest nationwide bust in Medicare history. Seven cities, from Chicago to Miami, Houston to Baton Rouge showing us how gigantic this problem is, 107 doctors, nurses and social workers were charged and the FBI said they had scammed taxpayers out of nearly half a billion dollars."
The CBS Evening News reported, "Federal agents have executed a massive roundup of suspects for Medicare fraud, breathtaking in its scope. There were raids yesterday in seven cities. One hundred and seven people are accused tonight in scams to steal $452 million from the program. They include doctors, nurses, and owners of mental health centers who allegedly billed taxpayers for treatments that patients never received."
The AP calls it "the latest in a string of major arrests in the past two years as authorities have targeted fraud that's believed to cost the government between $60 billion and $90 billion each year. On Wednesday, hundreds of federal agents fanned out around the country, raiding businesses, seizing documents and charging 107 suspects in Miami, Los Angeles, Houston, Detroit, Chicago, Tampa, Fla., and Baton Rouge, La. The government suspended payment to 52 providers as part of the investigations."

Data Suggest Labor Market Is Cooling Bloomberg News reports that private sector employment increased by 119,000 in April, "the smallest gain in seven months," according to data from ADP Employer Services. Bloomberg notes that the numbers point "to a cooling in the job market." The Labor Department will release the numbers for the full economy Friday. That report "is projected to show payrolls increased by about 160,000 in April after rising 120,000 a month earlier, according to the Bloomberg survey median." Additionally, the Commerce Department reported that factory orders in March "fell 1.5 percent following a 1.1 percent gain in February." The Wall Street Journal also reports that the ADP data suggests that the labor market is cooling. USA Today says the ADP numbers are "feeding fears" that the Labor Department report "will show disappointing job growth for a second month."

Campaign News

Offering "Tepid Support" For Romney, Gingrich Suspends His Campaign The CBS Evening News reported, "In the presidential race today, Newt Gingrich made the long-awaited announcement that he's giving up his fight for the Republican nomination. He gave a less-than-ringing endorsement to his once-bitter rival Mitt Romney, suggesting only that Romney is better than the Democratic alternative, President Obama."
ABC World News reported that Gingrich "did not endorse Mitt Romney. But he said you can laugh at his idea to bring a lunar colony on the moon, but he still believes in it. Now that he has more free time he is going to take it up again and you have not heard the last of it."
NBC Nightly News reported that Gingrich "finally suspended his bid for the GOP nomination today after leaving behind some memorable moments in the campaign that seemed for a while there like it was not going to end."
The AP reports that Gingrich, who "bowed out of the race more than $4 million in debt and his reputation perhaps damaged," called on "conservatives to rally behind Romney as a better alternative than Obama. 'This is not a choice between Mitt Romney and Ronald Reagan. This is a choice between Mitt Romney and the most radical, leftist president in American history,' Gingrich said."
The Washington Times says Gingrich offered a "tepid endorsement of Mr. Romney," encouraging conservatives to back the former Massachusetts Governor over Obama. The Washington Post similarly says Gingrich "delivered a tepid endorsement of...Romney that could best be summed up as the following: the enemy of my enemy is my friend."
The Hill (5/2, Sink) reported on its website, "The tepid support will likely do little to endear Gingrich to the" GOP "after a grueling primary campaign, and is particularly puzzling considering the $4 million in debt the Gingrich campaign reportedly holds. According to multiple reports, the Romney campaign and" the RNC "indicated they would help Gingrich retire the outstanding balance, but such an offer seems likely predicated on hard work to support the Romney campaign."

Romney Says Democrats "Don't Like Business Very Much" Fox News' Special Report reported Mitt Romney says President Obama's "reelection road map could take the country right down the path to an even worse economy," adding that Romney's attack "comes amid reports of sharp downturns in business hiring and orders for factory goods." Carl Cameron added, "At a woman-owned business in Virginia, Romney charged President Obama with 'extraordinarily disappointing political tactics' that Romney warned could harm the nation's economic vitality," and "accused the President...of using rhetoric so antibusiness that it could ultimately discourage and stunt growth."
The Los Angeles Times adds that Romney said Obama's "policies have harmed small businesses and divided Americans," and pledged he would "ease regulations, increase domestic energy production and reduce taxes to right the nation's economy." Romney said, "Democrats say they like a strong economy. They just don't like business very much and you see the economy is made up of nothing but business and so we have to encourage entrepreneurs." The Hill reports in its "Ballot Box" blog that Romney "tried to pivot the election conversation back to the economy" with the stop. His campaign "also released a Web video Wednesday morning, attacking Obama's economic record."

Obama, Romney Run Tight In FL And OH, But President Leads By 8 In PA A new survey of three key swing states from Quinnipiac University shows the race tight in Florida and Ohio, but President Obama leading Mitt Romney by 8 in Pennsylvania. In Florida, Romney leads Obama 44%-43%. In a similar poll five weeks ago, Obama led 49%-42%. In Ohio, Obama tops Romney 44%-42%, down from a 47%-41% lead in the prior survey. However, in Pennsylvania, Obama now leads 47%-39%, up from a 45%-42% lead previously. Quinnipiac's Peter Brown said, "Romney's ability to cut into the president's leads in Ohio and Florida reflects two changes in the political environment: First, since he is now the de facto nominee, Romney is no longer being attacked by his fellow Republicans, who are closing ranks behind him. Second, voter optimism about the economy has leveled off, reflecting economic statistics over the past month and the public reaction to them." The poll surveyed 1,169 registered voters in Florida, 1,130 registered voters in Ohio, and 1,168 registered voters in Pennsylvania from April 25-May 1.

Poll Shows Walker, Barrett Even In Recall Matchup A poll released Wednesday by Marquette University School of Law shows Wisconsin Gov. Scott Walker (R) and Milwaukee Mayor Tom Barrett (D) "locked in a dead-even race for governor," the Milwaukee Journal Sentinel reports. Among registered voters, "Barrett led Walker 47% to 46%. That 1-point lead was reversed when considering only likely voters, with Walker holding 48% and Barrett holding 47%." The Journal Sentinel adds, "Walker performed much better against former Dane County Executive Kathleen Falk. He beat her 49% to 42% among registered voters, with similar results among likely voters. Walker had an advantage of 49% to 40% among likely voters in head-to-head matchups with both Sectary of State Doug La Follette and state Sen. Kathleen Vinehout." In the Democratic primary, Barrett leads with 38%, followed by Falk with 21%, La Follette with 8% and Vinehout with 6%. The poll surveyed 705 registered voters from April 26-29.
Wisconsin Democrats Shift Focus To Walker's Record On Jobs The AP reports, "When Wisconsin Democrats launched their recall drive against" Walker last year, "it was all about unions. They wanted Walker to pay with his job for pushing legislation that stripped almost all public workers of nearly all their collective bargaining rights." However, "buoyed by fresh federal statistics that show Wisconsin's economy is still" struggling, Democrats have recently been seeking "to transform the election into a referendum on" Walker's "failure to put people back to work." The piece adds that Department of Labor numbers show the state lost 23,900 jobs, "including 17,800 government jobs from March 2011 to March 2012, the largest job loss of any state."