VZCZCXRO7032
RR RUEHAG RUEHDF RUEHLZ
DE RUEHRL #0040/01 0131539
ZNR UUUUU ZZH
R 131539Z JAN 10
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC 6252
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 1914
RUEHLO/AMEMBASSY LONDON 0634
RUEHFR/AMEMBASSY PARIS 1153
RUEHRO/AMEMBASSY ROME 2656
RUEHNO/USMISSION USNATO 1677
RUEHVEN/USMISSION USOSCE 0840
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 000040 
 
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: IR US CH YM RS XF
SUBJECT: MEDIA REACTION: IRAN, U.S., CHINA, TERRORISM, RUSSIA, 
ISRAEL;BERLIN 
 
¶1.   Lead Stories Summary 
¶2.   (Iran)   Death of Nuclear Scientist 
¶3.   (U.S.)   Special Levy on Banks 
¶4.   (China)    Test of Missile Defense System 
¶5.   (Terrorism)   Yemen 
¶6.   (Russia)    Dagestan Violence 
¶7.   (Middle East)   Israel Builds New Wall 
 
 
¶1.   Lead Stories Summary 
 
Print media focused on a variety of issues, ranging from the bomb 
attack on an Iranian nuclear scientist (FAZ), to the debate over a 
reform of the Hartz IV social security laws (Sueddeutsche), to a 
lack 
of doctors in eastern Germany (Die Welt), and the planned 
postponement 
of a Bundesliga soccer match due to the expected riots of May 1 
(Tagesspiegel).  Editorials focused on the 30th anniversary of the 
foundation of the Greens Party and President Obama's plan to raise a 
 
special tax on banks to finance the budget deficit.  ZDF-TV's early 
 
evening newscast heute opened with the retrial in connection with 
the 
collapse of an ice-skating hall that killed 14 people in January of 
 
2006, while ARD-TV's early evening newscast Tagesschau opened with a 
 
story on the problems of EADS in connection with the A 400 M.  This 
 
morning's broadcast media covered the earthquake in Haiti that 
killed 
several hundred people. 
 
¶2.   (Iran)   Death of Nuclear Scientist 
 
All German (1/13) papers reported on the death of an Iranian nuclear 
 
scientist, highlighting that "Tehran blames Israel and the U.S." (FT 
 
Deutschland). 
 
Frankfurter Allgemeine (1/13) fronted: "Iran accuses the West of a 
bomb attack in Tehran," noting that "the Iranian regime has 
portrayed 
the deadly bomb attack on an Iranian nuclear scientist in Tehran as 
a 
western conspiracy.... A State Department spokesman rejected 
Tehran's 
allegations as 'absurd,' saying that America has nothing to do with 
 
the attack." 
 
Sddeutsche (1/13) headlined: "Nuclear scientist killed in Tehran," 
 
adding that the "Iranian regime accuses America and Israel of 
kidnapping and killing scientists....  Even before the official 
investigations started, Iranian media accused foreign intelligence 
services and the opposition People's Mujahidin party of being 
responsible for the attack.  The state-run TV newscast quoted 
security 
experts as saying that the technology used points at the Israeli 
intelligence service Mossad."  The paper also noted: "It is known 
that, since 2005, the CIA has an operation called Brain Drain to 
persuade Iran experts to leave the nuclear program." 
 
FT Deutschland (1/13) reported: "The case raises clear doubts about 
 
BERLIN 00000040  002 OF 006 
 
 
 
the official statements on Mohammadi's death.  The website of 
opposition leader Musawi puts the attack in line with the murder of 
 
Musawi's nephew after the severe protests last December.  This 
implies 
that the murder of the physicist is supposed to be a warning to the 
 
opposition...  Mohammadi belongs to a group of university professors 
who 
supported that candidature of Musawi in the run-up to the 
presidential 
elections in June." 
 
Berliner Zeitung (1/13) headlined: "Iranian Riddle," commenting that 
 
"there have been contradictory reports on the professor's political 
 
convictions....  For western diplomats, it has been immensely 
difficult 
for months to assess news coming out of Iran.  The country is going 
 
through one of its most serious crises since the Islamic Revolution 
in 
1979." 
 
Die Welt (1/13) remarked: "The background of the attack is unclear. 
 
However, it would not be the first time that an Iranian scientist 
with 
suspected ties to the secret nuclear program disappears or dies 
under 
mysterious circumstances." 
 
¶3.   (U.S.)   Special Levy on Banks 
 
All papers (1/13) carried reports on President Obama's plans to 
impose 
a special levy on banks to siphon off the profits they made during 
the 
financial crisis.  Financial Times Deutschland carried a front page 
 
report under the headline; "U.S. Banks to Pay the Bill," while 
Sueddeutsche headlined: "U.S. Banks to Pay for the Financial 
Crisis," 
and wrote that "the White House is examining a fee to get back the 
costs for its support of the financial system.  In addition, the 
government hopes to counter the gambling mentality at Wall Street." 
 
Frankfurter Allgemeine noted that "America's banks are to cover the 
 
losses of the state-run rescue package."  Die Welt reported under 
the 
headline: "U.S. Government is Having a Go at Financial Sector" that 
"a 
commission is seeking the ones who are to blame for the financial 
crisis." 
 
"Justified Anger," headlined Sueddeutsche Zeitung (1/13), and 
judged: 
"The ones who must be blamed should pay.  This is the core of the 
plans for a levy on banks which President Obama wants to 
introduce...but 
the much more important goal probably is to alleviate the anger of 
the 
public at Wall Street.  It is no coincidence that the plans of this 
 
special tax were leaked during a week in which the banks publish 
 
BERLIN 00000040  003 OF 006 
 
 
their 
giant bonus payments for the crisis year 2009.  There is no question 
 
that this anger at Wall Street is justified.  And it would only be 
fair if the banks are punished, but the question is whether this 
will 
be possible without damaging the rest of the economy.  Obama is 
faced 
with the alternative to approve mere symbolic measures or to impede 
 
the supply of loans to the economy.  Special levies, irrespective of 
 
whether they are imposed on bonus payments or on risky investments, 
 
are always substitute actions.  At issue is the implementation of 
the 
new banking rules, especially stricter capital requirements, as 
quickly as possible and without watering them down." 
 
Under the headline: "Punitive Tax," Frankfurter Allgemeine (1/13) 
had 
this to say: "Considerations in Washington to impose a special tax 
on 
banks to cover the government's cost for the rescue of the financial 
 
system, are evidence of populism.  Shortly before the publication of 
 
the results of the 1st quarter, in which the banks will announce 
their 
immense profits and which will even intensify the public anger at 
bonus payments, President Obama is positioning himself on the good 
side. But it is by no means clear whether the state investments in 
the 
banks will really turn into losses for the taxpayer.  Much more 
decisive is that a tax that will siphon off profits will by no means 
 
contribute to protecting the financial system from new crisis.... 
But a 
flat tax on profits resembles a punitive tax that runs counter to an 
 
orderly tax system." 
 
An editorial in Financial Times Deutschland (1/13) carried an 
editorial under the headline: "Robin Hood or the Taxpayer," and 
argued: "This levy is right even if this idea of a special tax is 
based on election tactics.  The financial crisis has demonstrated 
the 
damage banks can inflict on the economy and that they are not able 
to 
save the system - or even themselves.  In the end, it will always be 
 
the state which will pay.  That is why it is justified to demand a 
kind of fee for this function of the state.  The fact that, of all 
nations, the country with the globally biggest capital market makes 
 
the first step in this respect is a great fortune.  What a pity that 
 
this idea is hardly implementable for Germany right now.  Unlike the 
 
United States and the UK, where a few banks again earn a lot of 
money, 
it would only be Deutsche Bank where the state could siphon off a 
few 
additional euros.  All others, however, will take a long time to 
turn 
from debtors to creditors." 
 
Handelsblatt (1/13) opined:  "It would be the best for all sides if 
 
BERLIN 00000040  004 OF 006 
 
 
 
President Obama succeeded in creating a levy on banks which is well 
 
conceived and high enough for this industrial sector to pay its debt 
 
to the taxpayer in a credible way.  If not, it will remain a focus 
of 
criticism for a long time to come.  At the same time, the capability 
 
of the banks to offer loans should not suffer.  Only if Obama 
succeeds 
in this squaring of the circle will this tax make sense -- as a kind 
 
of indulgence which will get the banks out of the purgatory." 
 
Under the headline: "Bonus Payments as Fire Accelerant," die 
tageszeitung (1/13) argued: "It corresponds to the feeling of 
justice 
among many people that bankers pay their share in the costs they 
created.  But there is yet another good argument to present them the 
 
bill in connection with the bonus payments.  These bonus payments 
will 
have the effect of a fire accelerant if a lot of money is again 
being 
burnt at the stock markets: a reward will lure bankers to accept 
irresponsible risks, while, in case of a failure, there won't be any 
 
sanctions." 
 
¶4.   (China)    Test of Missile Defense System 
 
Frankfurter Allgemeine (1/13) judged: "No one has the intention to 
attack the People's Republic of China.  That is why no one should be 
 
afraid of China spending a lot of money on intercepting 'hostile 
missiles.'  If the Chinese [missile] test was really the success as 
it 
was sold, and if it is really an anti-missile defense system, then 
the 
result primarily shows that China wants "to be one of us."  It is 
nonsensical to link the Chinese missile test to the shipment of U.S. 
 
anti-defense missiles to Taiwan.  It is obvious that China is 
irritated at this U.S. step.  But even the most zealous conspiracy 
theorist cannot turn this into a threat.  There would only be one 
exception, and that would be if: Beijing admitted that it has 
aggressive intentions towards Taiwan. And this would not go along 
with 
the image of China as a peace-loving developing country which the 
country so diligently spreads about itself." 
 
Regional daily Landeszeitung of Lneburg (1/13) judged: "China is 
spending a lot of energy on presenting itself as a 'responsible 
major 
power,' which -- unlike the emerging nations of the 20th century, 
Germany and Japan-- is committed to creating peace.  But maybe China 
 
is only the shrewd emerging country which is camouflaging its 
aggressive intentions behind cloudy peace rhetoric.  Beijing's 
confession of setting up a missile defense system is undermining its 
 
credibility.  Beijing vows that this system is 'defensive,' but this 
 
is only half the truth because a strong shield can create a feeling 
of 
unassailability, which, in turn, could encourage it to be more 
aggressive, for instance, about reconquering secessionist Taiwan. 
 
BERLIN 00000040  005 OF 006 
 
 
For 
Eastern Asia, China's missile defense system is explosive news." 
 
¶5.   (Terrorism)   Yemen 
 
In an editorial under the headline: "For a Pittance  Money to Al- 
Qaida," Sueddeutsche Zeitung (1/13) had this to say: "Western 
government knew for a long time how well suited the impoverished and 
 
forgotten state in the Gulf of Aden is  as a breeding ground for 
radicals and rebels.  The methods of Yemenite President Ali Abdullah 
 
Salih, who has been the strongman of the country for more than 30 
years now, have helped even less over the past few weeks to defuse 
the 
dangerous mixture of Yemenite conflicts.  That is why it is very 
easy 
to find a few hopeless people for a pittance.  But it would be 
possible to regain the confidence of the ragged rank and file for a 
 
life beyond Jihad.  Much more dangerous are the internationally well 
 
linked terrorism godfathers such as the U.S. born Anwar al-Awliki 
who 
lives in Yemen.  U.S. military psychiatrist Nidal Hasan exchanged 
mails with him before he shot 13 people in Fort Hood.  Air strikes 
against al-Qaida camps in Yemen, which killed civilians only 
recently, 
will drive even more supporters into the radicals' hands.  What the 
 
country needs is development and a better government. The 
Afghanistan 
conference in London should make this clear." 
 
¶6.   (Russia)    Dagestan Violence 
 
Berliner Zeitung (1/13) analyzed: "Yesterday's attack on the gas 
pipeline makes clear that violence is escalating in Dagestan.  It is 
 
only a week ago that Russia's Caucasus Republic avoided a 
catastrophe... 
Since then, the spiral of violence has been accelerating...  It is 
clear 
that the police have become the target of Islamic extremists, 
regardless of whether they are ordinary police officers or the 
interior minister, who was shot during a wedding in August.  It is 
also clear that this is a problem that all of Russia has to deal 
with. 
Dagestan is Russia's largest republic in the Caucasus.  It is a 
micro 
Caucasus with a dozen of different ethnic groups.  Peace is 
maintained 
by a sophisticated quota system in the appointment of offices. 
Ethnic 
considerations or clan considerations can hardly be distinguished. 
At 
its southern fringe, Russia's state structure is failing.  Following 
 
the 2004 attacks, Putin tried to get the region under control by 
stopping the elections of governors.  Since then, they are appointed 
 
by the President....  However, Dagestan shows that Putin's famous 
'power 
vertical' of authoritarian governance is failing in the Caucasus." 
 
 
¶7.   (Middle East)   Israel Builds New Wall 
 
 
BERLIN 00000040  006 OF 006 
 
 
Sueddeutsche (1/13) deals with Israel's intention to build a new 
wall 
along the Israeli-Egyptian border and judged: "The existence of the 
 
Jewish state is by no means jeopardized only in military terms, but 
 
also as far as demography is concerned.  Prime Minister Netanyahu 
explicitly said the new fence along the border with Egypt, which has 
 
been considered a 'peace border' since 1979, will be used to keep 
out 
illegal immigrants 'to preserve the Jewish and democratic character 
of 
the state of Israel.'  In this case it aims at African immigrants. 
 
But Israel wants to distance itself much more from the Palestinians 
on 
the West Bank and in the Gaza Strip.  That is why this barrier, 
which 
cuts large blocks of Israeli settlement out of the West Bank, is, in 
 
addition to the defense against terror, a monument of demographic 
insulation.  The Palestinians with their high birth rate will make 
the 
Jews a minority in their own state.  The dilemma is clear: Israel is 
 
still the only country in the Middle East where western values have 
 
made their mark on.  But the openness of democratic societies is 
colliding with the need for safety and safeguarding the Jewish 
identity.  In case of doubt, Israel will also vote in favor of 
security, with all its consequences.  Those who see themselves 
fighting for their identity will also see the use of many means to 
be 
justified, including such means that are considered questionable 
elsewhere.  That is why Israel is not only sealing off its borders 
but 
also continues to develop a laager mentality." 
 
MURPHY