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VOL. CLXVIII ... No. 58,178 © 2018 Company NEW YORK, SUNDAY, DECEMBER 16, 2018 $6.00 Climate Accord DEMOCRATS WARN Remains Alive OF ‘5-ALARM FIRE’ As Crisis Builds OVER HEALTH LAW Onus Is on Nations to Implement Change DECISION REVIVES BATTLE

By BRAD PLUMER G.O.P. in Tough Spot — KATOWICE, Poland — Diplo- mats from nearly 200 countries Experts Say Ruling Is reached a deal on Saturday to keep the Paris climate agreement Unlikely to Stand alive by adopting a detailed set of rules to implement the pact. The deal, struck after an all- This article is by Sheryl Gay Stol- night bargaining session, will ulti- berg, Robert Pear and Abby Good- mately require every country in nough. the world to follow a uniform set of WASHINGTON — The deci- standards for measuring their sion by a federal judge in Texas to planet-warming emissions and strike down all of the Affordable tracking their climate policies. Care Act has thrust the volatile de- And it calls on countries to step up bate over health care onto center their plans to cut emissions ahead stage in a newly divided capital, of another round of talks in 2020. imperiling the insurance cover- It also calls on richer countries age of millions of Americans while to be clearer about the aid they in- delivering a possible policy open- tend to offer to help poorer nations ing to Democrats. install more clean energy or build After campaigning vigorously resilience against natural disas- on a pledge to protect patients ters. And it builds a process in with pre-existing medical condi- which countries that are strug- tions — a promise that helped re- gling to meet their emissions turn them to the House majority goals can get help in getting back Tents linked by red carpets at a retreat for McKinsey & Company consultants in Kashgar, China’s ancient Silk Road city. they had lost in 2010 — Democrats on track. vowed to move swiftly to defend The agreed to the the law and to safeguard its pro- deal despite President Trump’s tections. vow to abandon the Paris Agree- Turning Tyranny Into a Client On the defensive, Republicans ment. Diplomats and climate campaigning this fall promised change activists said they hoped that they too backed the health that fact would make it easier for law’s protections for people with the administration to change its How McKinsey Helps Autocrats Rise, Countering U.S. Interests pre-existing medical conditions. mind and stay in the Paris Agree- But the Texas ruling illustrated ment, or for a future president to major humanitarian crisis. cling their Disney-like adventures. In the fruits — and possible perils — embrace the accord once again. By WALT BOGDANICH About four miles from where the Mc- fact, McKinsey’s involvement with the of their long-running campaign, The United States cannot formally and MICHAEL FORSYTHE Kinsey consultants discussed their work, Chinese government goes much deeper stepped up in the Trump era, to re- withdraw from the agreement un- which includes advising some of China’s than its odd choice to showcase its pres- make the judiciary through the til late 2020. This year’s McKinsey & Company re- most important state-owned companies, ence in the country. confirmation of dozens of conser- Observers said United States treat in China was one to remember. a sprawling internment camp had sprung For a quarter-century, the company has vative judges, including two ap- negotiators worked construc- Hundreds of the company’s consultants up to hold thousands of ethnic Uighurs — joined many American corporations in pointees to the Supreme Court. tively behind the scenes with frolicked in the desert, riding camels over part of a vast archipelago of indoctrina- helping stoke China’s transition from an The ruling, if it stands, would China on transparency rules. The sand dunes and mingling in tents linked tion camps where the Chinese govern- economic laggard to the world’s second- not only do away with coverage two countries had long been at by red carpets. Meetings took place in a ment has locked up as many as one mil- largest economy. But as China’s growth protections for people with pre- odds because China had insisted cavernous banquet hall that resembled a lion people. presents a muscular challenge to Ameri- existing health conditions but also on different reporting rules for de- sultan’s ornate court, with a sign over- One week before the McKinsey event, a can dominance, Washington has become strike down the guarantee of cov- veloping countries, while the head to capture the mood. United Nations committee had de- increasingly critical of some of Beijing’s erage for what the law deems “es- United States favored consistent “I can’t keep calm, I work at McKinsey nounced the mass detentions and urged signature policies, including the ones sential health benefits.” These in- emissions-accounting rules and & Company,” it said. China to stop. McKinsey has helped advance. clude emergency services, ma- wanted all countries to be subject Especially remarkable was the loca- But the political backdrop did not ap- One of McKinsey’s state-owned clients ternity and newborn care, mental to the same outside scrutiny. tion: Kashgar, the ancient Silk Road city pear to bother the McKinsey consultants, has even helped build China’s artificial is- health and substance abuse treat- “The U.S. got a clear methodolo- in China’s far west that is experiencing a who posted pictures on Instagram chroni- Continued on Page 10 ment, prescription drugs and pe- gy to make sure that China and In- diatric care. Continued on Page 4 Continued on Page 16

The Best Place A Scheme Aided the Trumps. Tenants Are Paying. Leader of Interior Dept. Resigns To Put Money? Under Cloud of Ethics Inquiries By RUSS BUETTNER Your Mattress and SUSANNE CRAIG They were collateral damage as By JULIE TURKEWITZ Donald J. Trump and his siblings and CORAL DAVENPORT dodged inheritance taxes and Interior Secretary Ryan Zinke, By MATT PHILLIPS gained control of their father’s for- a key figure in President Trump’s Stocks? Messy. Bonds? Meh. tune: thousands of renters in an sweeping plan to reshape the na- Commodities? Not pretty. empire of unassuming red-brick tion’s environmental framework, Most years, financial markets buildings scattered across Brook- resigned under pressure on Satur- are a mixed bag. A bad year for lyn, Queens and Staten Island. day as he faces numerous ethics risky investments, like stocks, Those buildings have been investigations into his business might be a great one for safe bets home to generations of strivers, dealings, travel and policy deci- like government bonds. Or, if wor- municipal workers and newly ar- ries about inflation are hurting rived immigrants. When their reg- sions. bond investments, commodities ulated rents started rising more “Secretary of the Interior like gold tend to do well. quickly in the 1990s, many tenants @RyanZinke will be leaving the Not this year. had no idea why. Some heard that Administration at the end of the year after having served for a pe- For the first time in decades, ev- the Trump family had spent mil- ERIC THAYER/REUTERS riod of almost two years,” Mr. ery major type of investment has lions on building improvements, Ryan Zinke helped reshape fared poorly, as the outlook for but they remained suspicious. Trump wrote on . “Ryan JOSHUA BRIGHT FOR THE NEW YORK TIMES federal environmental policy. economic growth and corporate “I’ve always thought there was has accomplished much during profits is dampened by rising something strange going on,” said Jack Leitner lives in Brooklyn at the Beach Haven Apartments, his tenure and I want to thank him trade tensions and interest rates. Jack Leitner, who has lived in the once owned by the Trumps. His rent has been artificially inflated. for his service to our Nation.” The year’s end or risk being fired in a Stocks around the world are get- Beach Haven Apartments in Co- president said he would name a potentially humiliating way, two ting pummeled, while commod- replacement this coming week. ney Island, Brooklyn, for more buildings. The Trump children have long since sold their father’s people familiar with the discus- ities and bonds are tumbling — all Mr. Zinke is the latest Trump of- than two decades. “But you have split that extra money. buildings and moved on with their sion said. of which have left investors with to have proof, and it’s an uphill bat- ficial to exit an administration Padding the invoices had a sec- inherited fortunes. But for ten- Mr. Trump has been looking at few places to put their money. tle.” plagued by questions of ethical replacing a number of other cab- If this persists, or grows worse, ondary benefit for the Trumps, al- ants, the insidious effects of the As it turned out, a hidden scam conflict. And his departure comes inet officials. He has been telling it could create a damaging feed- lowing them to inflate rent in- scheme continue to this day. as Mr. Trump has begun a shake- lurked behind the mysterious in- associates for weeks that the com- back loop, with doubts about the creases on their father’s rent- The padded invoices have been up in his administration. In early creases. In October, a New York merce secretary, , will economy hurting the markets, regulated apartments. baked into the base rent used to November, the president fired At- Times investigation into the ori- be leaving now that the midterm and trouble in the markets under- “The higher the markup would calculate the annual percentage torney General , and gins of Mr. Trump’s wealth re- elections are over, and he has also mining growth. vealed, among its findings, that be, the higher the rent that might increase approved by the city. The last weekend he announced that frequently complained about Pessimism emanating from the the future president and his sib- be charged,” Robert Trump, the sum total of the rent overcharges his chief of staff, John F. Kelly, was Betsy DeVos, the education secre- stock market could leave con- lings set up a phony business to president’s brother, once admitted cannot be calculated from avail- leaving. sumers and businesses scared to pad the cost of nearly everything in a sworn deposition obtained by able records. But as a way to ap- In one of the final acts of Mr. tary. The homeland security sec- spend. The rout in junk bonds their father, the legendary builder The Times. preciate the scope of the impact, a Kelly’s tenure, his team told Mr. retary, , is also Continued on Page 18 Fred C. Trump, purchased for his The president and his siblings Continued on Page 15 Zinke that he should leave by Continued on Page 17

INTERNATIONAL 4-12 NATIONAL 14-19 SUNDAY BUSINESS THE MAGAZINE SUNDAY REVIEW

Violence Overruns Paraguay Outré Art Not Welcome Here A Harvard Star, Accused The Ghost Ship Fire Eduardo Porter PAGE 1 Some of Brazil’s most powerful gangs A proposal in a feminist artist’s home- The economist Roland Fryer had a Max Harris, a gentle vegan, awaits trial have established a foothold in the coun- town in New Mexico to open a museum meteoric rise. Now he faces investiga- in connection with a fire in a warehouse try, importing havoc as they export in her honor has exposed cultural frac- tions into whether he fostered a work and artists’ utopia in Oakland, Calif., guns and drugs. PAGE 6 tures. PAGE 14 environment hostile to women. PAGE 1 that killed 36 people. PAGE 30 U(D547FD)v+,!"!_!#!{