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He is trying to influence Saudi-US diplomatic relations, which we all have a First Amendment right to do.
He isn't "negotiating a contract", because only agents of the US government can negotiate contracts with the US.
What you quoted literally says it's banned. I mean "with intent to influence" is right there in the text you quoted. Did you even read it?
Yes, I quoted the Logan Act to point out that it's directly at odds with the First Amendment. A law that bans "influencing" someone will quickly be ruled unconstitutional as soon as anyone tries to enforce it.
There are many anachronistic laws that are still on the books but will be thrown out if anyone tries to enforce them today. For example, in some states homosexuality is technically banned, but those bans are unenforceable and people "flagrantly violate the law" every day.
Interesting that his law, signed into law by a founding father no less, is an anachronistic law, but the constitution is supposed to be rock solid and the law of the land. Looking at you, second amendment
Our interpretation of the First Amendment has undeniably changed a lot over the centuries. The Sedition Act, also in 1798, sent someone to jail for calling the President "not only a repulsive pedant, a gross hypocrite, and an unprincipled oppressor, but...in private life, one of the most egregious fools upon the continent." Such a prosecution would be a non-starter today.
It's sad that the Second Amendment seems to be frozen in time, for now.