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DE RUEHRL #1258/01 2801201
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FM AMEMBASSY BERLIN
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INFO RHEHAAA/WHITE HOUSE WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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RHMFIUU/HQ USAFE RAMSTEIN AB GE
RHMFISS/HQ USEUCOM VAIHINGEN GE//J5 DIRECTORATE (MC)//
RHMFISS/CDRUSAREUR HEIDELBERG GE
RUKAAKC/UDITDUSAREUR HEIDELBERG GE

UNCLAS SECTION 01 OF 06 BERLIN 001258 
 
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 KPAO KN AF EFIN ELAB HO US EU
SUBJECT: MEDIA REACTION: DPRK, AFGHANISTAN, IMF, ECONOMIC, HONDURAS, 
 
DOLLAR, OBAMA, EU;Berlin 
 
¶1.   Lead Stories Summary 
¶2.   (DPRK)   U.S. Relations 
¶3.   (Afghanistan)   Future U.S. Strategy 
¶4.   (Economic)   IMF/World Bank Meeting in Istanbul 
¶5.   (Economic)   U.S. Labor Market Policy 
¶6.   (Honduras)   Power Struggle 
¶7.   (Economic)   Weakness of The Dollar 
¶8.   (U.S.)   Obama Administration 
¶9.   (EU)   Future of Lisbon Treaty 
 
¶1.  Lead Stories Summary 
 
Newspapers led with a variety of stories.  Frankfurter Allgemeine 
led 
with a report on perceived disarray in U.S. leadership regarding 
future strategy in Afghanistan, while Sueddeutsche reported that 
Deutsche Bahn will increase its fares.  Die Welt highlighted the gap 
 
in the healthcare fund and the two Berlin dailies focused on a 
decision by Berlin's Constitutional Court that allowed two petitions 
 
for a referendum.  Editorials focused on the coalition talks, the 
future of the SPD, and the plan of Deutsche Bahn to increase fares. 
 
ZDF-TV's early evening newscast heute opened with a report on the 
coalition talks, while ARD-TV's early evening newscast Tagesschau 
opened with a story on the gap in the healthcare fund. 
 
¶2.   (DPRK)   U.S. Relations 
 
In a lengthy report, "North Korea Sets New Conditions in Nuclear 
Conflict," Sueddeutsche Zeitung wrote   that "China was unable to 
prompt North Korea to return to nuclear talks.  During a trip to the 
 
communist neighboring country, China's Minister President Wen Jiabao 
 
was unable to achieve a breakthrough.  Pyongyang rather set a new 
condition for a return to the negotiating table.  North Korea's 
dictator Kim Jong-il told his Chinese visitor that progress in 
bilateral North Korean relations must be achieved before North Korea 
 
returns to the Six-Party talks.  At the same time, there are 
indications from SoQh Korea that North Korea is pushing the 
reconstruction of the Yongbyon nuclear facilities." 
 
Under the headline: "Time for Negotiations," Sueddeutsche Zeitung 
(10/07) argued: "Since China is either unwilling or unable to exert 
 
greater pressure on Kim Jong-il, President Obama must shoulder the 
responsibility of implementing an effective policy towards North 
Korea.  But for much too long, Washington's foreign policy has 
neglected this trouble spot on the Korean peninsula.  The U.S. 
government is strongly considering sending a special envoy to 
Pyongyang.  This would be a good first step.  It would be illogical 
 
for the U.S. to refuse to enter into talks when the North Korean, 
recognition-craving dictator so desperately wants them.  If a 
military 
option is unthinkable, then talks under set preconditions must take 
 
place.  In the long run, Obama should have the courage to implement 
a 
new strategy in North Korea.  This includes genuinely listening to 
the 
North Koreans.  For years, they have repeated at every opportunity 
that they want better relations with the United States.  If 
Washington 
 
BERLIN 00001258  002 OF 006 
 
 
accepted this request garnished with tough disarmament demands, Kim 
 
could be forced to negotiate.  But currently, both sides are 
watching 
each other closely, and no one wants to make the first step, while 
the 
dictator continues to build the bomb." 
¶3.   (Afghanistan)   Future U.S. Strategy 
 
Several papers (10/07) picked up Secretary Gates' statement on the 
commander of U.S. forces in Afghanistan, General McChrystal, noting 
 
that Gates said on CNN that advice should be given to the President 
 
privately.  Under the headline "America's leadership at odds over 
strategy on Afghanistan," Frankfurter Allgemeine led with a report 
saying that "the debate about the mission in Afghanistan is becoming 
 
more critical in the U.S. and Britain."  Sddeutsche headlined: 
"U.S.: 
no withdrawal from Afghanistan," and added that, "in the fierce 
debate 
over the approach on Afghanistan, the White House ruled out 
withdrawing [from Afghanistan]."  Tagesspiegel headlined "U.S. calls 
 
on NATO partners in Afghanistan," quoting Gates as saying: "The 
reality is that because of our inability and the inability, frankly, 
 
of our allies to put enough troops into Afghanistan, the Taliban 
have 
the momentum right now, it seems." 
Under the headline "Rebellion in the Pentagon," Berliner Zeitung 
(10/07) analyzed "Barack Obama wanted to make the far-reaching 
decision calmly and after careful consideration.  That's impossible 
as 
civilian and military leaders in Washington debate the future 
strategy 
on Afghanistan in public....  There is even talk of a rebellion of 
generals....  Obama is having difficulties with the military advice 
of 
his commander in Afghanistan....  Since the massive election fraud, 
 
Washington is increasingly doubtful over whether Afghanistan's 
problems can be resolved with more troops....  Influential advisors 
are 
therefore suggesting more modest goals: containing the Taliban, 
airstrikes against al Qaida....  At the end of the day, Obama will 
have 
to decide whether he believes that the hope of achieving a more 
stable 
Afghanistan is still realistic." Frankfurter Rundschau carries the 
same analytic article under the headline "Rebellion of the 
generals." 
[Note: Berliner Zeitung and Frankfurter Rundschau belong to the same 
 
publishing house, Neven DuMont, and increasingly share reports.] 
 
 
Under the headline "Failure on the home front," FT Deutschland 
(10/07) 
editorialized: "For the U.S. President, the most important front in 
 
the war against the Taliban is not in Afghanistan, but at home. 
Obama 
is facing a strategic landmark: he must decide whether to meet the 
demands of his commander McChrystal for more troops - or whether to 
 
support those who favor a complete change of strategy; withdrawing 
soldiers to focus on the targeted fight against al Qaida.  The 
 
BERLIN 00001258  003 OF 006 
 
 
President's problem is that, regardless of what his decision will 
be, 
the war he inherited from his predecessor will become his war 
entirely....The eroding support for the mission on the home front 
has 
parallels with the Iraq war.  Bush also had to make the 
strategically 
difficult decision to deploy more troops in Iraq against the will of 
 
the people, instead of withdrawing.  As heated as the debate in the 
 
U.S. currently is, Afghanistan might turn into a similar debacle, 
just 
like Obama's health care reform.  In both cases, discussion has 
broken 
out....  Just as Obama did not for a long time make clear his plans 
for 
the health care reform, his details on Afghanistan also remain 
vague.... 
The White House is failing to dominate the debate - also because 
Obama 
still seems to be undecided.  The longer it takes to reach a 
decision, 
the lower the approval of the mission will be." 
 
¶4.   (Economic)   IMF/World Bank Meeting in Istanbul 
 
Several dailies (10/07) reported on the meeting of the IMF and the 
World Bank in Istanbul.  All papers focus on the riots that broke 
out 
during the meeting.  "Riots Overshadowing Discussion Over IMF 
Reform," 
headlined Frankfurter Allgemeine Zeitung.  The sub-headline of the 
report states: "The IMF wants greater power because of the Economic 
 
Crisis, but Bundesbank President Weber is Opposed."  The paper 
reported: "In the meantime, the reform of the IMF has resulted in 
little progress measured against previous expectations.  The reform 
of 
voting rights is especially controversial.  The threshold countries 
in 
particular are pressing for greater influence, but representatives 
of 
the industrialized countries, among them the Bundesbank, insist on 
previous principles according to which the voting rights should 
correspond to the capital shares and the financial burden of the 
donor 
countries.  IMF critics blame in particular Germany, France and the 
UK 
for demonstrating an adamant attitude." 
 
Handelsblatt (10/07) and Die Welt (10/07) carried front-page 
pictures 
of broken windows, the result of turmoil between police and 
protesters 
who clashed at the IMF/World Bank meeting in Istanbul. A caption 
from 
Die Welt reads: "For many protesters, the IMF is considered a symbol 
 
of global capitalism, because for a long time, its support for 
developing nations was linked to painful economic reforms." 
Handelsblatt wrote: "While demonstrators accused the IMF of being 
co- 
responsible for the economic crisis, IMF head Dominique Strauss-Kahn 
 
called for greater power for his organization to safeguard the 
stability of financial markets.  World Bank President Robert 
Zoellick 
called for a greater say of the poorer countries." 
 
BERLIN 00001258  004 OF 006 
 
 
 
¶5.   (Economic)   U.S. Labor Market Policy 
 
Under the headline: "Obama's Flash in the Pan," Frankfurter 
Allgemeine 
(10/07) opined: "Barack Obama is racking his brains on how he can 
help 
the sluggish labor market. The economic stimulus package the 
President 
and Congress approved in February, has not yet achieved its desired 
 
effect.  A lasting reduction of the tax burden on corporations with 
a 
profound tax reform would certainly be more useful.  But such a 
restructuring should be linked to savings at other places in the 
budget.  But regrettably, neither Obama nor Congress will show the 
political courage and will for the foreseeable future to implement 
such moves.  But they should not stick to plans which would at best 
be 
a flash in the pan and even increase the indebtedness of the state 
at 
the expense of future generations." 
 
Under the headline: "What America Teaches Us," Sueddeutsche Zeitung 
 
(10/07) judged: "Those who want to know what is going to happen in 
the 
global economy should study the U.S. labor market.  Since the 
beginning of the recession, more than 7.2 million jobs have been 
lost 
and despite the biggest economic stimulus program in U.S. history, 
the 
cutting of jobs will continue next year.  This worrying development 
is 
first of all evidence of how weak the U.S. economy still is.  No one 
 
is certain of the best way to create new jobs.  Only one thing is 
clear:  Good jobs require a good education.  A reform of the U.S. 
schooling system is a central point in President Obama's program and 
 
it is, therefore, of strategic significance.  But the crisis 
underway 
in the U.S. labor market also has a global perspective.  The global 
 
economy can only recover if global imbalances are reduced, i.e. if 
surplus countries such as China and Germany concentrate more on the 
 
growth of their internal markets.  For Germany, this means economic 
 
reforms which make investments in the country more attractive." 
 
¶6.   (Honduras)   Power Struggle 
 
Frankfurter Allgemeine (10/07) argued: "Despite the return of former 
 
Honduran President Zelaya and despite the dwindling support for his 
 
successor, Micheletti, there has been some movement in the political 
 
trench warfare in Honduras.  This gives reason to hope, as every 
additional day will shorten the period until the presidential 
elections in November.  Six candidates, who represent the entire 
political spectrum of the country, are running for president. The 
solution to the constitutional conflict in Honduras could be very 
simple.  The current government subjects the election campaign and 
the 
elections to international supervision, and the elected president 
will 
enter office in January.  Micheletti would be willing to accept this 
 
BERLIN 00001258  005 OF 006 
 
 
 
solution, but Zelaya and his wirepullers in Venezuela and Cuba will 
 
still have to accept that their game is over.  This could be the 
task 
for the OAS delegation, which is en route to Honduras." 
 
¶7.   (Economic)   Weakness of The Dollar 
 
"Rumors Without Substance," the headline in Sueddeutsche Zeitung, 
reports that according to British dailies the Gulf states together 
with China, Russia, Japan, and Brazil want to replace the dollar in 
 
crude oil trade.  The daily judged: "Such rumors are again 
fashionable 
because many economic experts are dreaming of a new financial market 
 
order.  The fact that the Gulf states in particular want to replace 
 
the dollar with a new basket of oil currencies sounds like a 
conspiracy burlesque.  But such a plan would have no use for the 
Gulf 
states, because they sit on billions of dollars that serve as a 
long- 
term investment.  If Saudis and Kuwaitis are really considering such 
 
scenarios, the greenback would face additional pressure.  But no 
investor voluntarily damages himself by creating doubts about the 
currency in which he has made his investments." 
 
¶8.   (U.S.)   Obama Administration 
 
Under the headline: "Enough of the Nice Words," Die Welt opined: 
"The 
cheers [of the right-wing in the United States] after Chicago's 
failure [to get the 2016 Olympics] was pubertal, unfair, and 
basically 
un-American.  But it was even worse that the triumph of the 
President's enemies also stimulated a still unacknowledged fear of 
his 
admirers: Has Barack Obama, the people whisperer, lost his magic? 
Is 
he only a magician who speaks nice words, but who does not know what 
 
he wants and does not achieve anything?  There has been an 
increasingly irritated undertone in the liberal and left-leaning 
U.S. 
press.  There is an Obama, the eternal hesitator, and there is an 
Obama, who wants to justice for everyone.  The question is what does 
 
Obama want, and what political capital is he willing to invest for 
his 
convictions?  These are the questions which leave many of his 
admirers 
feeling helpless.  If he considers a public option reasonable, why 
has 
he never said this with clear words?  Why is he refraining from 
using 
his clear mandate in Congress to strive to implement his ideas, even 
 
though some may fail?  Why can Obama not be more pigheaded instead 
of 
balking at the consequences of his ideas?  How could he idly stand 
by 
in August as people compared him with a mass murderer, toyed with 
associations to lynch him and made shrill statements against his 
healthcare reform plans?  Some people say that the president must 
become more mature and turn from a symbol of change to a leader of 
change.  But he must give those who believe in him a chance for 
 
BERLIN 00001258  006 OF 006 
 
 
success or at least clarity.  We have heard enough nice words." 
 
¶9.   (EU)   Future of Lisbon Treaty 
 
Frankfurter Allgemeine (10/07) editorialized on the front page: "In 
 
case the conservatives win the elections next spring, Tory leader 
Cameron promised the people a referendum on the Lisbon Treaty-if it 
 
has not come into force by then.  It takes little imagination as to 
 
what the outcome of such a referendum would be:  The Lisbon Treaty 
would be as dead as a doornail.  Cameron can only secretly wish that 
 
he does not have to keep his promise.  If Britain scraps the treaty 
it 
has already ratified, it would snub the other member states; and a 
Prime Minister Cameron would certainly not have an easy beginning 
among the other state and government leaders.  Cameron might rather 
 
snub his EU skeptics....  The idea that Tony Blair, a man of 
yesterday, 
should be a suitable EU President is difficult to understand.  Not 
just the Tories want to prevent him." 
 
  MURPHY