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RR RUEHAG RUEHDF RUEHLZ
DE RUEHRL #0097/01 0251502
ZNR UUUUU ZZH
R 251502Z JAN 10
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC 6355
INFO RHEHAAA/WHITE HOUSE WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNFRG/FRG COLLECTIVE
RUEHBS/AMEMBASSY BRUSSELS 1947
RUEHLO/AMEMBASSY LONDON 0669
RUEHFR/AMEMBASSY PARIS 1188
RUEHRO/AMEMBASSY ROME 2689
RUEHNO/USMISSION USNATO 1708
RUEHVEN/USMISSION USOSCE 0871
RHMFIUU/HQ USAFE RAMSTEIN AB GE
RHMFISS/HQ USEUCOM VAIHINGEN GE//J5 DIRECTORATE (MC)//
RHMFISS/CDRUSAREUR HEIDELBERG GE
RUZEADH/UDITDUSAREUR HEIDELBERG GE
UNCLAS SECTION 01 OF 07 BERLIN 000097
STATE FOR INR/R/MR, EUR/PAPD, EUR/PPA, EUR/CE, INR/EUC, INR/P,
SECDEF FOR USDP/ISA/DSAA, DIA FOR DC-4A
VIENNA FOR CSBM, CSCE, PAA
"PERISHABLE INFORMATION -- DO NOT SERVICE"
SIPDIS
E.0. 12958: N/A
TAGS: OPRC KMDR AF IQ HA XF US ECON
SUBJECT: MEDIA REACTION: AFGHANISTAN, IRAQ, HAITI, MIDEAST, U.S,
ECONOMIC;BERLIN
1. Lead Stories Summary
2. (Afghanistan) Run-Up to London Conference
3. (Iraq) Biden Visit
4. (Haiti) Reconstruction Efforts
5. (Mideast) Peace Process, U.S. Role
6. (U.S.) Obama Administration
7. (Economic) Banking Regulation
1. Lead Stories Summary
The majority of newspapers dealt with Left Party leader Oskar
Lafontaine's decision to step down from the party leadership.
Frankfurter Allgemeine carried an interview wit Defense Minister zu
Guttenberg, while Sueddeutsche Zeitung reported that Germans have to
expect an increase in contributions to the statutory health care
system. Editorials focused on Oskar Lafontaine's stepping down from
the Left Party's leadership and Foreign Minister Westerwelle's
proposal to help Taliban supporters cut their links to the group.
Other editorials dealt with proposals to reform the banking system.
ZDF-TV's early evening newscast heute opened with a report from
Haiti
and ARD-TV's early evening newscast Tagesschau opened with a story
on
Oskar Lafontaine.
2. (Afghanistan) Run-Up to London Conference
All papers reported that the German government will change its
strategy when it comes to the training of Afghan security and police
forces and offer this training not only in camps and bases but will
also go to the countryside and train Afghans security forces in the
field. In addition, the government is obviously thinking of
increasing the Bundeswehr forces by 500 soldiers, even though this
figure has not yet been confirmed. In addition, Foreign Minister
Westerwelle has suggested an exit program for Taliban supporters.
Weekly Der Spiegel's cover story (three pages) also deals with the
events in Afghanistan and it reported that "The Americans have
approved on a new strategy against the Taliban shortly before the
beginning of the London conference. The German government can only
follow or continue to make a fool of itself. But if it backs the
[U.S.] strategy, the number of German victims is likely to follow."
In its report, Der Spiegel noted that "the London Afghanistan
conference was considered a focal point of Germany's policy towards
Afghanistan, but now the German government is faced with a similar
rank such as at the climate summit in Copenhagen. It is allowed to
present its views here and there but it will hardly have any
influence
on the great questions. The term 'middle power' on which German
politicians got high on for a while only sounds absurd. Such as
China
determined the climate summit, the United States dominates the
policy
on Afghanistan. The weeks before the conference turned into an
embarrassment for the Germans, not only because of the arrogance of
a
BERLIN 00000097 002 OF 007
Richard Holbrooke. The Americans decided to send 2,500 soldiers to
Northern Afghanistan. This is a clear vote of no-confidence against
the Germans who are responsible for the North."
Tagesspiegel carried a front-page report under the headline:
"Bundeswehr to leave its Camps more often - new Strategy for the
Afghanistan Mission." Die Welt carried a front-page report under
the
headline: "Westerwelle Wants to Pacify Taliban with Money," while
Financial Times Deutschland headlined: "Additional Trainers for
Police
and Armed forces - Today Decision on New Strategy - Opting-out Fund
for Taliban," and reported that "The German government wants to
extend
its engagement in Afghanistan primarily for the civilian
reconstruction and when it comes to the training of security forces.
Today, the four Ministries involved in the talks will meet with
Chancellor Merkel to coordinate the final details." In another
report, FT Deutschland headlined: "The West Wants to Defeat Taliban
with Money," and wrote: "The international community has a new peace
plan for Afghanistan. After years of futile attempts to defeat the
Taliban militarily, the Afghanistan conference in London this
Thursday
is to approve a fund that is to help reintegrate the insurgents.
This
fund in which the U.S. the UK, Germany and other states are involved
is to be a first step for a long-term peace process." Sueddeutsche
Zeitung headlined: "Taliban Who Want to Take Part in Exit Program
Urgently Wanted," while Berliner Zeitung reported that "[Defense
Minister] zu Guttenberg Offers more Soldiers for Afghanistan."
Deutschlandfunk commented: "Foreign Minister Westerwelle announced
intensified German efforts for the civilian reconstruction of the
country and an exit program for the Taliban, which, according to
Westerwelle, have joined the group not out of a fanatic conviction
but
out of economic reasons. With this proposal the German government
is
backing the views of mockers saying that it would be better to pay
all
Afghans a monthly salary, which would be cheaper and result in fewer
casualties than sticking to an expensive international military
mission that causes many losses. This war cannot be won militarily.
ISAF and NATO cannot avoid learning the same lesson in Afghanistan
which forced the Soviets and the British to withdraw their forces
after heavy losses and without anything profoundly changing in the
country. To have the political power in Afghanistan as a whole has
always meant to be dependent on the support of the powerful tribal
leaders or war lords whose loyalty can be bought. In so far,
Westerwelle's exit program is not unrealistic...but with respect to
Germany, only one concept could be implemented in a realistic way:
the one on the withdrawal of the Bundeswehr."
In an editorial Frankfurter Allgemeine judged: "If the Bundeswehr
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is
taking its mission seriously and creates security in its operational
area, wants to make possible reconstruction and development, and if
it
also wants to protect the Afghan population form Taliban
attacks...then,
according to military experts, the current forces are not enough.
More trainers are also necessary for the training of the Afghan
armed
forces. Those who are speaking of 'a perspective for a withdrawal,'
but ignore the decisions that must be made now, are fooling
themselves
and the public."
Leipziger Volkszeitung deals with the exit program for Taliban
supporters that Foreign Minister Westerwelle has suggested and
opined:
"It is Westerwelle's secret of how such a program should work in a
mountain village in the Hindu Kush. The Bundeswehr had to hear from
its U.S. ally that it has not shown presence 'in the field.' Now
the
federal government has no scruples using its checkbook and
categorizing who is to be considered a radical and a moderate among
the Taliban. This is not only a sign of hubris but is also a play
with
fire."
Regional daily MQrkische Oderzeitung of Frankfurt on the Oder
judged:
"Foreign Minister Westerwelle considered it a good idea to offer
money
to Afghans who fight with the Taliban. In return, they should no
longer use violence. This is an expensive idea and only reveals the
West's helplessness concerning the situation in Afghanistan.
Indeed,
a small part of the Taliban supports [the terrorist group] out of
misery. But this does not mean that they would leave the
organization
for money. On the one hand, they are ideologically trained to hate
the state that is supported by the West, and, on the other hand, as
'traitor' of Islam they are threatened with death or they could be
ostracized. And with them, a large scale family would also be
threatened and such a structure is the rule in Afghanistan."
3. (Iraq) Biden Visit
Several papers carried factual news reports on Vice President
Biden's
visit to Baghdad. Frankfurter Allgemeine headlined: "Biden Failed
in
Baghdad," and reported: "Prime Minister Maliki keeps insisting on
the
exclusion of many Sunnis from the elections. When looking of the
list
of candidates, who were excluded from the elections, then this were
overwhelmingly only Sunnis. While President Talabani criticized the
measure against alleged collaborators, Prime Minister Maliki even
defended his views in talks with Biden. A spokesman for Maliki said
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that Biden had not come to Baghdad 'to interfere in domestic affairs
but to discuss the strategic relations between the United States and
Iraq.' Following his talks in Baghdad, Biden expressed his optimism
that the Iraqi leadership would continue to 'work for a
comprehensive
and fair solution.'" Tagesspiegel reported under the headline:
"Candidates Remain Excluded," and said: "Vice President Biden's
visit
to Baghdad fell on deaf ears. He was unable to assert his criticism
of the exclusion of more than 500 politicians in the elections."
Under the headline: "Cold Shoulder," Frankfurter Allgemeine
editorialized: "U.S. Vice President Joe Biden has now tried in vain
to
prompt the electoral commission in Baghdad to review the exclusion
of
secular candidates who have thus far proven to be loyal and capable.
Washington is afraid that the election could not be considered
legitimate. The Sunnis in particuar are faced with serious
disadvantages. America that toppled Saddam Hussein has withdrawn
its
forces and deployed them in camps and bases and is now internally
preparing for a troop withdrawal. But this will automatically also
diminish its political influence on Baghdad."
4. (Haiti) Reconstruction Efforts
In a front-page editorial, Frankfurter Allgemeine remarked: "Given
that the Pentagon is deploying an increasing number of soldiers in
the
region devastated by the quake, some people get a funny feeling.
Although more aid would have been stuck in the air over
Port-au-Prince
without the effective American leadership, many in the region would
like to hear more about Obama's plans: for how long will the
Americans
stay? This question is justified, however not because the bigmouths
of Caracas and Managua are right.... Haiti now needs two who have
been
mistrusting each other for a long time. It is true what Kofi Annan
said in his last speech as UN secretary general: history shows that
the UN system works badly when the U.S. stands aside. However, it
can
work very well when America has a farsighted leadership."
Sddeutsche editorialized: "Aid, particularly food, often proves to
be
a sweet poison that carries the germ for the next greater
catastrophe.
There are two kinds of assistance: the good and sustainable one is
focusing on stimulating the people to help themselves. It sets the
foundation for the people to get on their feet as soon as possible
and
to get their lives under control again. The bad one creates
dependencies and leads to a mentality of petitioners who do not
trust
themselves anymore but give in to their situations. Let's hope
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Haitians will find self-respect. One way to achieve this would be
to
establish a functioning agriculture that grows enough rice to feed
the
whole country. The land and the farmers are there, but because
Haiti
is only the hinterland of a large power, it had to open up its
markets
in the times of globalization for cheaper American rice. This soon
brought an end to Haitian rice production.... The domestic
production
in ruins, hunger imported: this was a very bad path. It would help
the country and the dignity of its people to correct this now. The
opportunity is there: never before has this forgotten part of the
island received so much sympathy and-which is at least as
important-
many countries around the world are unexpectedly providing large
sums
of money. With it, Haiti could be turned into a self-sufficient
country.... Given its current situation, Haiti will accept the
assistance it gets. It looks as if it does not get what it needs:
the
aid to help itself. The WFP will continue to distribute the
surpluses
of the rich countries."
5. (Mideast) Peace Process, U.S. Role
Under the headline "Zigzag course," Sddeutsche editorialized that
"Obama has gambled away rapprochement between the Israelis and the
Palestinians by his shocking naivety.... A withdrawal would
certainly
by tempting for Washington. The rivals are stubborn, the situation
is
deadlocked and Barack Obama has just admitted in an interview that
his
ambitious Mideast plans have failed. The President said he has
underestimated a few problems and had therefore too many
expectations.
This analysis is right. However, apart from this remarkable
honesty,
Obama also reveals shocking naivety. This naivety is to blame for a
part of today's problems. The Nobel Peace Price laureate did not
just
promise more than he could keep, his zigzag policy also pushed the
rivals into positions that made negotiations more difficult... It
does
not make sense to send Mitchell again and again as a petitioner with
the increasingly bizarre task of negotiating whether negotiations
could be possible."
6. (U.S.) Obama Administration
Frankfurter Allgemeine commented: "Either President Obama has lost
his
composure, or, what is more likely, his angry complaints about
judges
suggested the style that should lead him out of his defensive....
Two
days earlier, he already attacked the country's large banks and said
he would keep a tighter rein on them. There is no question about
this: After the electoral defeat in Massachusetts, the President has
BERLIN 00000097 006 OF 007
chosen a more aggressive line." In a separate report, Frankfurter
Allgemeine headlined "Back in the election campaign," and added that
"Obama is taking flight in left-wing rhetoric."
Die Welt highlighted: "U.S. President pretends to be close to the
people again and is more aggressive: open battle with the U.S.
supreme
court-major speech awaited on Wednesday.... With populist furor,
President Obama tries to respond to the crisis of his presidency and
that of the Democratic Party."
In an editorial under the headline "A week of Defeats for Barack
Obama
- the President under Pressure," Die Welt (1/23) noted: "The
President
is fighting again. Not for his agenda, but his office. At the
beginning of his second year in office, Barack Obama stands with his
back to the wall. Liberal Massachusetts dealt him a personal
defeat...
He is now obviously trying to appeal to Main Street again and to
tackle to continuing job crisis. And he hits Wall Street with
populism. It remains to be seen whether this dual strategy will
work.
However, he does not have many alternatives."
7. (Economic) Banking Regulation
Handelsblatt judged in an editorial: "President Obama's proposals on
the disintegration of big banks nave not only shook up the
international banking landscape like an earthquake. With his
politically motivated move, Obama also has shaken up the previous
plan
of an internationally coordinated financial reform. Those who
insist
that the big banks must pay for their mistakes in the market
economy,
must develop rules that will not result in a danger for the
financial
system once they go bankrupt. Higher capital requirements can slow
down growth, but not remove risks stemming from large banks.
Despite
all the criticism of the U.S. proposals, Obama has put the finger in
the right wound. Europe should follow him."
Sueddeutsche Zeitung (1/23) argued: "Basically we must thank the
bankers in the U.S. and Europe that they are acting the same way
they
did before the financial crisis. President Obama now wants to
prevent
the banks from making high risk investments, restrict trade among
themselves and, if necessary, force them to disintegrate. It does
not
matter whether Obama is serious or whether he only wants to score
points after the most recent domestic hit below the belt. It is
important that he acts at all because, without the United States, a
global financial reform will be impossible.... But the decisive
question has not yet been resolved: How can a bank be prevented from
becoming so powerful that it can force the state to bail it out in
case of a worst case scenario? We also owe it to Chancellor Merkel
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that this question is still on the agenda.... At the global level
Chancellor Merkel should back Obama's proposal to limit risky
businesses of banks. But everyone should quickly bid farewell to
the
proposal that governments could stay out of crisis management. The
state will always be the last resort because it is the state which
has
the means and the authority to prevent a conflagration. This, too,
is
a lesson from the crisis."
Frankfurter Allgemeine (1/23) editorialized: "President Obama now
seems to take on the banks. The loss of his popularity, the loss of
a
Senate seat, and the anger of the people at the fat cats at Wall
Street are the reasons for this change of course. But will Obama
assert his views? Wall Street has a powerful lobby with good
connections to the Republicans, who, as defenders of the banks,
hardly
have a chance to score points among the voters. A debate over the
size of banks...is more appropriate than the populist call for
punitive
taxes or a limit on bonus payments. A splitting up of banks cannot
prevent the next crisis but could contribute to preventing states
from
being liable for deposits to prevent a run on banks."
Under the headline "Obama's Herculean task," FT Deutschland noted:
"President Obama must still demonstrate that he is serious about his
plans to tighten the regulation of banks. However, the Europeans
should follow his example.... Although many details are not yet
clear,
the direction is right. For his fight, the President should be
quickly supported by all those who have to take the necessary legal
steps after this crisis. The American President is facing an
opponent
who knows every trick in the book."
According to FAZ, "the German government does not want President
Obama
to leave it in the dust. The billions of euro with which the German
taxpayer had to save the banks have not been forgotten. But
Chancellor Merkel and Finance Minister SchQuble should do more than
just making announcements. Why should it always last a few months
before the first proposals come to the fore? It is right to support
international coordinated efforts. Even bankers are saying that the
casino at the financial markets has reopened again. But what
SchQuble
has presented thus far is nothing but white ointment. What would be
more important is to work out insolvency procedures for systemic
banks. They must become insolvent without plunging the financial
system into an abyss or having a chance to blackmail the state."
MURPHY