WATERLOO -- Former New York City mayor Rudy Giuliani said in Waterloo Thursday that Iowa plays an important role in decreasing dependence on foreign oil, and also answered some pointed questions about his law firm's ties to the oil industry.
The Republican presidential hopeful toured the Hawkeye Renewables ethanol plant in Fairbank Thursday morning before delivering remarks at tiny Morg's Diner in downtown Waterloo to an overflow crowd. The Morg's stop was belived to be one of his first campaign appearances in Waterloo-Cedar Falls.
"Iowa should be very proud of itself. You play a big role in how we become energy independent in this country," he said.
As Giuliani has stepped up his support of renewable fuels like ethanol, his ties to oil companies have come under scrutiny.
He leads all presidential candidates in contributions from donors and spouses of donors employed by the oil and gas industry. An analysis by the nonpartisan Center for Responsive Politics placed Giuliani's contributions from such donors at $396,000 through June 30, far ahead of the second highest oil and gas beneficiary, Mitt Romney.
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Giuliani's law firm, Houston-based Bracewell & Giuliani, also has lobbied Texas legislators on behalf of Citgo Petroleum Corp., a Texas-based oil company ultimately controlled by Venezuelan President Hugo Chavez. Giuliani himself, however, did no lobbying for Citgo, which was a client of the law firm before Giuliani joined, Giuliani and Citgo officials have said.
The firm has worked on behalf of Saudi Arabia's oil ministry in a Texas court case. Its other legal clients include ChevronTexaco; BMB Munai, a developer of oil wells in Kazakhstan, and Statoil, a Norway-based oil and gas conglomerate.
Beyond policy, the candidate found ways to connect with those in the booths and aisles at Morg's and gathered outside on the sidewalk.
"Hey, wait a minute. What have you got there?" Giuliani asked Ryan Goodwin.
Before climbing into a waiting vehicle, Giuliani lifted a ball cap off the young man's head. The hat was on backwards, perhaps to conceal a large red B.
Goodwin's father, Ron, owns Morg's with partner Sam Ludwig and was more than happy to host the campaign event.
Giuliani, however, is a fan of the New York Yankees. The B signified his team's archrival, the Boston Red Sox.
"That's OK. We gained two games on you," Giuliani said. They Yankees are currently running in second place to the Red Sox in the American League's Eastern Division
Ron Goodwin said he got about two weeks notice Giuliani intended to stop by. Despite a stand-room-only crowd, Ron Goodwin said the event wasn't particularly good for business since few people were ordering food. But the publicity for Morg's was very welcome, he added.
Ann Jorgensen introduced Giuliani, surrounded by a crush of reporters, photographers, television cameras, waitresses, cooks and other guests at Morg's. Her support, she said, stemmed from a single issue.
"The war in Iraq."
Giuliani, she said, is far and away the strongest candidate on national security issues. The topic is close to Jorgensen's heart, she added, because her son will return to Iowa on Wednesday. He is a member of the Iowa Army National Guard's 1-133rd Infantry, which recently completed a two-year deployment in Iraq.
Answering questions after the event, Giuliani dismissed suggestions his views are compromised by his law firm's work.
"Law firms represent a lot of people…they don't reflect your political views. This is kind of a silly way in which people attack each other," he said.
Giuliani said ethanol is one part of a national effort towards energy independence, citing the need to develop nuclear, water, wind and coal power technologies, in addition to building more oil refineries.
In talking tough on national security, Giuliani said energy independence is key to defeating Islamic terrorists. He also said that pulling troops from overseas locations would be a grave mistake.
"The only appropriate defense against the Islamic terrorists who want to come here and hurt us is a very, very strong offense," he said, noting the U.S. has foiled at least 15 terrorist plots since Sept. 11.
Giuliani asserted that the U.S. military is stretched too thin and needs to be expanded by 20,000 to 40,000 troops. Given hundreds of thousands of troops were eliminated in the 1990s, he called the increase modest.
"I believe we have to expand our military. It needs to be bigger, larger," he said.
Courier regional editor Dennis Magee and The Associated Press contributed to this report.
Contact Jens Manuel Krogstad at (319) 291-1580 or jens.krogstad@wcfcourier.com.
