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"We had a very good meeting yesterday. Very good," said Giuliani, adding that he was "very, very grateful" for al-Thani's generosity. It was no cinch, of course, that Giuliani would take the money: A week later, he famously rejected a $10 million donation from a Saudi prince who advised America that it should "adopt a more balanced stand toward the Palestinian cause." (Giuliani continues to congratulate himself for that snub on the campaign trail.) Al-Thani waited a month before expressing essentially the same feelings when he returned to New York for a meeting of the U.N. General Assembly and stressed how important it was to "distinguish" between the "phenomenon" of 9/11 and "the legitimate struggles" of the Palestinians "to get rid of the yoke of illegitimate occupation and subjugation." Al-Thani then accused Israel of "state terrorism" against the Palestinians.

But there was another reason to think twice about accepting al-Thani's generosity that Giuliani had to have been aware of, even as he heaped praise on the emir. Al Jazeera, the Arabic news network based in Qatar (pronounced "Cutter"), had been all but created by al-Thani, who was its largest shareholder. The Bush administration was so upset with the coverage of Osama bin Laden's pronouncements and the U.S. threats to bomb Afghanistan that Secretary of State Colin Powell met the emir just hours before Giuliani's on-air endorsement and asked him to tone down the state-subsidized channel's Islamist footage and rhetoric. The six-foot-eight, 350-pound al-Thani, who was pumping about $30 million a year into Al Jazeera at the time, refused Powell's request, citing the need for "a free and credible media." The administration's burgeoning distaste for what it would later brand "Terror TV" was already so palpable that King—hardly a newsman—asked the emir if he would help "spread the word" that the U.S. was "not targeting the average Afghan citizen." Al-Thani ignored the question—right before Giuliani rushed in to praise him again.

In retrospect, Giuliani's embrace of the emir appears peculiar. But it was only a sign of bigger things to come: the launching of a cozy business relationship with terrorist-tolerant Qatar that is inconsistent with the core message of Giuliani's current presidential campaign, namely that his experience and toughness uniquely equip him to protect America from what he tauntingly calls "Islamic terrorists"—an enemy that he always portrays himself as ready to confront, and the Democrats as ready to accommodate.

The contradictory and stunning reality is that Giuliani Partners, the consulting company that has made Giuliani rich, feasts at the Qatar trough, doing business with the ministry run by the very member of the royal family identified in news and government reports as having concealed KSM—the terrorist mastermind who wired funds from Qatar to his nephew Ramzi Yousef prior to the 1993 bombing of the World Trade Center, and who also sold the idea of a plane attack on the towers to Osama bin Laden—on his Qatar farm in the mid-1990s.

This royal family member is Abdallah bin Khalid al-Thani, Qatar's minister of Islamic affairs at the time, who was later installed at the interior ministry in January 2001 and reappointed by the emir during a government shake-up earlier this year. Abdallah al-Thani is also said to have welcomed Osama bin Laden on two visits to the farm, a charge repeated as recently as October 10, 2007, in a Congressional Research Service study. Abdallah al-Thani's interior ministry or the state-owned company it helps oversee, Qatar Petroleum, has worked with Giuliani Security & Safety LLC, a subsidiary of Giuliani Partners, on an undisclosed number of contracts, the value of which neither the government nor the company will release. But there's little question that a security agreement with Qatar's government, or with Qatar Petroleum, would put a company like Giuliani's in direct contact with the ministry run by Abdallah al-Thani: The website of Qatar's government, and the interior ministry's press office, as well as numerous press stories, all confirm that the ministry controls a 2,500-member police force, the General Administration of Public Security, and the Mubahathat, or secret police. The ministry's charge under law is to "create and institute security in this country." Hassan Sidibe, a public-relations officer for the ministry, says that "a company that does security work, they have to get permission from the interior ministry."

What's most shocking is that Abdallah al-Thani has been widely accused of helping to spirit KSM out of Qatar in 1996, just as the FBI was closing in on him. Robert Baer, a former CIA supervisor in the region, contends in a 2003 memoir that the emir himself actually sanctioned tipping KSM. The staff of the 9/11 Commission, meanwhile, noted that the FBI and CIA "were reluctant to seek help from the Qatari government" in the arrest of KSM, "fearing that he might be tipped off." When Qatar's emir was finally "asked for his help" in January 1996, Qatari authorities "first reported that KSM was under surveillance," then "asked for an alternative plan that would conceal their aid to Americans," and finally "reported that KSM had disappeared." Continue