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<div class="timestamp" style="white-space: nowrap; line-height: 15px; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman"></font></div><div class="timestamp" style="white-space: nowrap; line-height: 15px; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">martin wilson coc</font></div><div class="timestamp" style="white-space: nowrap; line-height: 15px; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman"></font></div><div class="timestamp" style="white-space: nowrap; line-height: 15px; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">August 26, 2003</font></div><h1 style="margin: 0px 0px 19px; line-height: 1.083em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">For Outsider Bid, Schwarzenegger Seeks Insider Advice</font></h1><div class="byline" style="line-height: 1.2em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">By CHARLIE LeDUFF</font></div><div class="articleBody" style="margin-top: 15px; margin-bottom: 17px; line-height: 15px;"><span itemprop="copyrightHolder provider sourceOrganization" itemscope="" itemtype="http://schema.org/Organization" itemid="http://www.nytimes.com"><font size="4" face="Times New Roman" /><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">LOS ANGELES, Aug. 25 — Arnold Schwarzenegger bills himself as the Sacramento outsider in the recall race who can bring a new perspective to government.</font></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Yet he has surrounded himself with accomplished Sacramento insiders, led by former <b>Gov. Pete Wilson </b>and the inner circle that helped him govern for two terms in the 1990's.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Though Mr. Wilson, 70, has taken a quieter role in day-to-day operations as one of the campaign co-chairmen, those close to him say, he wields great influence over the man trying to make the transition from the silver screen to the governor's chair.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">It may have been Mr. Wilson's advice over a two-hour lunch that helped persuade Mr. Schwarzenegger, 56, to jump five days later into the race to recall Gov. Gray Davis. A friend of both men says Mr. Wilson recounted a meal he had with Richard M. Nixon in 1966, when Mr. Wilson was considering stepping into politics. Mr. Nixon gave Mr. Wilson — as Mr. Wilson gave Mr. Schwarzenegger — some simple guidance: Don't dither. Opportunity passes you by.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Bill Whalen, a former speechwriter for Mr. Wilson who shares an office with him at the Hoover Institution, a research center at Stanford University, said that when the war horse talks, the novice listens.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"Pete is older than Arnold," Mr. Whalen said. "He is not star-struck or a toady. He is in a position to explain things to him in a frank way."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Mr. Wilson has had success. When he took office in 1991, the problems mirrored those today. Jobs were disappearing, and the state budget deficit was $14 billion. When he left office in 1998, the state was running a large surplus and it had recouped the lost jobs.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">But the Wilson team is not without liabilities. It pushed the energy deregulation that lead to rolling blackouts in 2000 that some blame on Mr. Davis.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">And it was Mr. Wilson who let slip on a Sunday morning talk show that Mr. Schwarzenegger, who was born in Austria, had supported Proposition 187, a successful ballot initiative that Mr. Wilson sponsored, barring illegal immigrants from state services.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">The influence of Mr. Wilson, still a polarizing figure in California politics, may not be apparent to voters. The job of articulating Mr. Schwarzenegger's positions is left to two other campaign co-chairmen: Representative David Dreier, a photogenic Southern Californian who once dated Bo Derek, and <b>Abel Maldonado,</b> a Hispanic assemblyman from Santa Maria and a rising Republican star who will be the Schwarzenegger spokesman on immigration should Mr. Davis sign a controversial bill allowing illegal immigrants to obtain drivers licenses.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Still, Mr. Wilson is the power behind the operation, and Democrats promise to make hay of it in the run-up to the Oct. 7 recall vote.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"The question is: is Arnold Pete Wilson incarnate or is he the true independent?" says Sheri Annis, a former consultant to Mr. Schwarzenegger and president of Fourth Estate Strategies. "It's best in politics to steer away from those with baggage. But this is a short, short race, and it's hard to know if the public will care. One thing is true, everyone on this team knows the ropes."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">As Mr. Schwarzenegger presents himself as a breath of fresh air, Wilson critics wonder if his run is merely a shadow campaign for a Wilson third term. Mr. Wilson has done little to dispel such perceptions. He was asked, before Mr. Schwarzenegger's surprise plunge into the race, why anyone would want the headache of dealing with California's dysfunctional Legislature or its sinking economy.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"I will reveal a deep character flaw," Mr. Wilson said in an interview. "I'm sufficiently masochistic in that I would willingly undertake the challenge of trying to rescue it. Former governors who are term limited are barred."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em;"><span style="background-color: rgb(255, 255, 255);">A certain part of Pete Wilson misses the political game, said Kenneth L</span><b><span style="background-color: rgb(255, 255, 255);">. </span><span style="background-color: rgb(255, 255, 102);">Khachigian,</span></b><span style="background-color: rgb(255, 255, 102);"> a former strategist to Ronald Reagan who most recently advised Darrell Issa, </span><span style="background-color: rgb(255, 255, 255);">the San Diego congressman who bankrolled the $2 million recall petition only to drop from the race for governor at the last moment.</span></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"Pete wants to participate," Mr. Khachigian said. "He cares deeply about this state. For four and a half years, nobody asked his advice, and now his juices are flowing."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Among Mr. Wilson's coterie working on the Schwarzenegger campaign is Bob White, his chief political lieutenant for more than 30 years. Mr. White is regarded as one of the best-connected men in Sacramento, an avuncular figure untainted by scandal. He has been, over the years, Mr. Wilson's fixer, facilitator and schmoozer. Mr. White runs the day-to-day operation of the campaign. <b>George Gorton, who ran Boris Yeltsin's re-election campaign, is Mr. Schwarzenegger's chief strategist.</b></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em;"><span style="background-color: rgb(255, 255, 255);">The finance and tax advisers were plucked from the Hoover Institution, where Mr. Wilson is a fellow. Among them are <b>George P. Shultz</b>, the former secretary of state; Michael Boskin, former adviser to Mr. Wilson and former chairman of the president's Council of Economic Advisers; and </span><span style="background-color: rgb(255, 255, 102);">John Cogan, a deputy director of the Office of Management and Budget under the first President George Bush who is in line to be Mr. Schwarzenegger's independent auditor.</span></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Patricia Clarey, a former Wilson deputy, manages the logistics. From the East and a graduate of the Kennedy School of Government at Harvard, Ms. Clarey is said to be the conduit to Mr. Schwarzenegger's wife, Maria Shriver, who holds great influence over him. Sean Walsh, a campaign spokesman, was also employed by Mr. Wilson.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">News that the campaign had hired another Wilson associate<b>, Martin Wilson, raised eyebrows. He, along with the advertising guru Don Sipple, were embroiled in an insurance scandal that drove the insurance commissioner, Chuck Quackenbush, from office.</b></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">A member of Mr. Wilson's inner circle when he was governor, Martin Wilson, no relation, is co-manager of the day-to-day campaign operations. His consulting firm, Public Strategies Inc., received nearly $400,000 from a foundation set up by Mr. Quackenbush after the Northridge earthquake in 1994.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);"><b>Instead of paying huge fines, insurance companies accused of mishandling claims were allowed to contribute to foundations ostensibly devised to help earthquake victims. Instead, the foundations spent millions of dollars on television advertisements devoted to enhancing Mr. Quackenbush's political image.</b></p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Mr. Sipple, who now produces Mr. Schwarzenegger's commercials, wrote the scripts for the Quackenbush advertisements and was paid $125,000, government records show. Mr. Quackenbush resigned in 2000 rather than face impeachment proceedings. Neither Mr. Wilson nor Mr. Sipple was charged with crimes.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Nevertheless, bad perceptions linger, said Brad Sherman, the Democratic congressman who represents the Northridge area.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"A lot of people feel they got cheated," Mr. Sherman said. "If Schwarzenegger wants to say he is going to clean up special interests, he needs to start with his own staff."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Mr. Sipple, considered one of the most effective advertising people in politics, is best known for his commercial "They Just Keep Coming," which depicted illegal immigrants sneaking into California. It was made in support of Proposition 187, and alienated a large part of the Latino community.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">As good as its winning percentage is, the Wilson team has had highly publicized defeats in recent years. Dan Lungren hired some of Mr. Wilson's top media and polling strategists in 1998 in a losing campaign for governor against Mr. Davis. Mr. Sipple was the chief strategist last year for Richard J. Riordan, the former Los Angeles mayor, who lost by 18 points to Bill Simon Jr. in the Republican primary.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Mr. Gorton played down the controversies involving some in the Wilson camp.</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">"The public doesn't care about that stuff," he said. "It's too inside baseball."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">Harvey Rosenfield, president of the Foundation for Taxpayer and Consumer Rights who supports the recall, says an opportunity is being missed. "The election is shaping up as a runoff between the same political establishment that got us into this mess over the last 10 years," Mr. Rosenfield said. "The Wilson Republicans and the Davis Democrats."</p><p itemprop="articleBody" style="margin: 0px 0px 1em; line-height: 1.467em; background-color: rgb(255, 255, 255);">The paradox of the political outsider working with the consummate insiders would be a good backdrop for the next Schwarzenegger movie, Mr. Rosenfield said. "It's the script where the hero gets taken over by the robots he's trying to protect the public from."</p></span></div>