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RR RUEHAG RUEHLZ
DE RUEHRL #0173/01 0411300
ZNR UUUUU ZZH
R 101300Z FEB 10
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC 6524
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 2010
RUEHLO/AMEMBASSY LONDON 0738
RUEHFR/AMEMBASSY PARIS 1255
RUEHRO/AMEMBASSY ROME 2756
RUEHNO/USMISSION USNATO 1772
RUEHVEN/USMISSION USOSCE 0933
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 05 BERLIN 000173 
 
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 IR EMS EU UP CE GM
SUBJECT: MEDIA REACTION: IRAN, EURO, EUROPEAN COMMISSION, UKRAINE, 
SRI LANKA, GERMANY-OPEL;BERLIN 
 
¶1.   Lead Stories Summary 
¶2.   (Iran)   Nuclear Program, Protests 
¶3.   (EU)   Euro Financial Crisis 
¶4.   (EU)   New European Commission 
¶5.   (Ukraine)   Aftermath of Elections 
¶6.   (Sri Lanka)   Rising Tensions 
¶7.   (Germany-U.S.)   GM-Opel 
 
 
¶1.   Lead Stories Summary 
 
Print media focused on the Constitutional Court's decision over the 
level of Hartz IV social security payments.  Handelsblatt opened 
with Opel's restructuring plans and Financial Times Deutschland with 
EU aid to Greece.  Editorials focused on Opel and the Constitutional 
Court's ruling.  ZDF-TV's early evening newscast heute and ARD-TV's 
early evening newscast Tagesschau also opened with the ruling on 
re-calculating of Hartz IV social security benefits. 
 
¶2.   (Iran)   Nuclear Program, Protests 
 
Various papers (2/10) carried reports that Iran has begun to further 
enrich uranium.  In a lengthy report under the headline: "One Step 
Closer to the Nuclear Bomb," Sueddeutsche Zeitung reported that 
"despite global protests, Iran begins with the enrichment of uranium 
to 20 percent.  According to its own information, Iran has begun to 
enrich.  On the night before, U.S. Defense Secretary Gates and 
French Foreign Minister Kouchner said that the UN Security Council 
should now quickly intensify sanctions on Iran.  Gates added that 
this would last weeks, not months.  The head of the Russian Security 
Council, Nicolai Patrushev warned against a rising danger for war 
and doubted that Iran's nuclear program only served peaceful means. 
According to a report from the IAEA, Iran wants to use it pilot 
plant in Natans to enrich the material from 3.5 percent to below 20 
percent...." 
 
Handelsblatt (2/10) headlined: "Iran Begins to Produce Higher 
Enriched Uranium," and wrote: "Despite looming international 
sanctions, Iran has, according to its own information, begun to 
produce higher enriched uranium.....  With such an enrichment level, 
Iran would come a great step closer to the production of 
weapons-gradable uranium, which requires an enrichment level of 85 
percent. 
 
Frankfurter Allgemeine Zeitung (2/10) carried a lengthy report 
headlined: "Carefully Dosed Escalation," and noted: "The head of 
Iran's Nuclear Energy Agency said on state TVV Monday night that 
Iran would stop the new activities in Natans [the enrichment of 
uranium] if the countries abroad were willing to supply fuel for the 
Research reactor in Tehran - and this of course on Iranian 
conditions.  But this statement should be enough for China to 
intensify its obstructionist behavior.  Thus far, Beijing was able 
to hide behind Moscow which has withstood demands for a tougher 
course towards Iran.  But now the Russians are playing their cards 
close to their chest and are even signaling that they are losing 
patience with Tehran, too....  Under China's protection, Tehran is 
now daring a provocation.  At issue is the production of nuclear 
explosives." 
 
In a report under the headline: "Enriched Distrust," Die Welt (2/10) 
reported that "fears in the West seem to confirm now that Iran does 
not want to stick to lowly enriched uranium....  A nuclear expert in 
Iran is speaking of an Iranian provocation of the international 
community.  He said: 'It would even be an excessively dangerous play 
for Ahmadinejad to plunge the country into a crisis as the 
consequence of sanctions or even a military strike.'  That is why he 
thinks that this is an Iranian move to bring back the global powers 
to the negotiating table.  But a foreign diplomat warned that "the 
 
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move could also backfire.'" 
 
Frankfurter Rundschau (2/10) reported under the headline: "Iran is 
Playing a Risky Poker Game" and wrote that "President Ahmadinejad 
can be certain that each of his moves meets with a great echo in the 
media.  But experts take a sober look at Iran's capabilities. 
According to the IAEA, Iran has 8,300 centrifuges, half of which do 
not work.  Thus far, Iran has been able to enrich 1,800 kilograms of 
uranium to 3.5 percent but a nuclear bomb requires an enrichment 
level of 85 percent.  It is Iran's goal to operate 50,000 
centrifuges." 
 
In an editorial, Die Welt (2/10) judged under the headline: "A Fist 
into the Face," that "following the orgy of lies with respect to the 
stolen elections from June and the appearance of Iran's Foreign 
Minister Mottaki in Munich at the Security Conference, the things 
the Iranian foreign minister said are even less credible than 
before.  3.5 percent or 20 percent enrichment level is not only a 
question for nuclear physicists, but in the meantime it has become 
an issue for the world as a whole and for the Middle East in 
particular.  While the UN Security Council meets and discusses tough 
sanctions on Iran, Ahmadinejad is hitting the world with a fist in 
the face.  If he gets away with it, the NPT will only be a piece of 
paper, the Middle East the laboratory of the apocalypse, and the 
global order just an empty word." 
 
Spiegel online (2/10) reported of attacks of Iranians against the 
Italian embassy in Tehran under the headline: "Iranians Attack 
Italian Embassy" and reported that about one hundred Iranians 
attacked the Italian Embassy in Tehran and protested in front of the 
building.  They shouted 'Death to Italy,' and 'Death to Berlusconi,' 
obviously out of protest against Italy's demands to impose sanctions 
on Iran in the nuclear conflict with Tehran.  Italy's Foreign 
Minister Frattini is outraged at the events in front of the embassy 
and called them 'hostile.'  Iranian media, however, described the 
incident as a peaceful demonstration by radical students. Similar 
events happened in front of the Dutch and French Embassy." 
 
Sueddeutsche (2/10) caried a picture depicting protesters with 
banners saying: 'European governments - Stop supporting Terorism' 
and "French Government - Terrorism suporter.'  The caption reads: 
"Supporters of the Iranian regime protested in front of the French 
and Italian embassies in Tehran.  The protesters hurled stones at 
the Italian embassy and the protesters tried to storm the building." 
 
 
¶3.   (EU)   Euro Financial Crisis 
 
All papers (2/10) carried reports on the European response to the 
fiscal crisis in Greece.  Front-page headlines included: "EU work on 
assistance for Greece" (Frankfurter Allgemeine), "EU wants to help 
the Greeks" (Sddeutsche), "Greece can hope for assistance by Euro 
countries" (Die Welt), "Berlin carries Euros to Athens" (FT 
Deutschland). 
 
FT Deutschland (2/10) opined:  "The trigger of the third wave of the 
crisis was not a bankruptcy of a bank like Lehman Brothers, but the 
bankruptcy of a country.  Greece is an obvious and acute problem, 
but not the only one.  If Greece plunges into chaos, it can be 
expected that some European banks will follow.  A small national 
bankruptcy would therefore pose a huge threat to the global 
financial system.   When Chancellor Merkel and her colleagues meet 
tomorrow in Brussels, it will not just be about Greece but also 
about the future of the European currency union." 
 
Frankfurter Allgemeine (2/10) reported on its front page: "EU 
Commissioner Almunia fueled speculation that the EU might soon 
provide financial assistance to Greece.  He told the European 
 
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Parliament that member states should promise Greece help if it 
commits itself to tough expenditure cuts."  In a separate report 
under the headline "Markets celebrate prospect for assistance to 
Greece," Frankfurter Allgemeine noted that "the hints on assistance 
to Greece calmed down investors." 
 
Die Welt (2/10) highlighted that "Greece strikes at the root of 
government expenditures," adding that "a tough program of higher 
taxes, wage cuts and a hire freeze are supposed to prevent Greece 
from becoming insolvent....   The country must regain its 
credibility among financial markets.  The mistaken statement of 
Australia's Reserve Bank, which said that Jean-Claude Trichet had to 
leave the country early to be able to participate in a crisis 
meeting of the ECB that deals with the problems of the Euro zone, 
shows how nervous the financial world is.  If the Reserve Bank had 
not corrected the message soon after, that would have been dramatic 
news." 
 
Frankfurter Rundschau (2/10) reported that "ECB President 
Jean-Claude Trichet's sudden change of his travel plans due to the 
EU special summit on Thursday triggered new speculation over a 
rescue operation for Greece....  According to EU diplomats, the EU 
state and government leaders will discuss Greece's crisis on the 
margins of their meeting.  They added that, however, a bailout 
program belongs to the realm of fantasy." 
 
Business daily Handelsblatt (2/10) highlighted that "the EU wants to 
help Athens - but only in cutting expenditures.  Greece is supposed 
to cut spending drastically as the tensions in the Euro zone are 
increasing." 
 
¶4.  (EU)   New European Commission 
 
Sdwestrundfunk radio (2/9) opined on the approval of the new EU 
Commission: "EU Commission President Barroso's policy approach of 
'divide and rule' has given him a submissive administrative 
apparatus with competences that overlap and commissioners that will 
inevitably fight over their responsibilities....  This is how the 
new Europe after the Lisbon Treaty presents itself.  President 
Barack Obama has drawn the right conclusions and cancelled his 
participation in the planned EU-U.S. summit.   Washington said that 
it is not clear who is responsible for what in Europe.  However, the 
majority in Strasbourg did not care about it." 
 
Frankfurter Allgemeine (2/10) editorialized: "Instead of being such 
a big mouth, the EU Commission would be well-advised to focus on a 
few major projects, such as overcoming the economic crisis, and 
proving that European citizens benefit from this institution." 
 
Frankfurter Rundschau (2/10) analyzed: "The EU commission is now 
elected and the parliament has clearly attained more power.   It 
must now use this power....  The members of parliament must prove 
that they cannot just fight for more rights, but are willing to make 
use of their new opportunities.  Only then will the new power 
balance in Europe contribute to leading the European Union out of 
its current critical state.  Although everybody talked about the 
commission yesterday, the parliamentarians are important for the new 
beginning." 
 
¶5.   (Ukraine)   Aftermath of Elections 
 
Frankfurter Allgemeine (2/10) editorialized: "Europe has an interest 
in a democratic, prosperous and western-oriented Ukraine.  If Kiev 
decides to take the post-Soviet path of poverty and authoritative 
structures, migration, collapsing markets and instability would 
follow.  This danger has been realized a long time ago.  Kiev and 
Brussels have been discussing an association agreement, including a 
free trade area, which could bring Ukraine as close to Europe as 
 
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Norway and Island.  Yanukovich will continue these negotiations. 
There is still much to do.  Yanukovich can get rid of his reputation 
of being Moscow's man if he solidifies democracy and fights 
corruption.  He would have to renounce detours that contradict the 
EU's common foreign and security policy.  He cannot want a free 
trade union with Russia and the EU at the same time.  He must adjust 
numerous laws.  If this happens Europe must do something in return." 
 
 
 
¶6.   (Sri Lanka)   Rising Tensions 
 
"Turnabout in Sri Lanka," headlined Sueddeutsche Zeitung (2/10) and 
judged: "There are no doubts about Mahinda Rajapakse's election 
victory, even though his challenger does not want to accept the 
outcome.  Nevertheless, the state leader acts with the arrogance of 
power and has not passed up the opportunity to humiliate Sarath 
Fonseka, who was defeated in the elections, by arresting him under 
dubious circumstances.  He is thus pushing a worrying development. 
Those who do not subject to the ruling presidential clan are living 
dangerously in Sri Lanka.   As a matter of fact, Sri Lanka has 
reason for hope one year after the end of the civil war....  In this 
situation, the future should lead to an open civil society.  But the 
state leader and his stooges are now choosing the opposite 
direction." 
 
¶7.   (Germany-U.S.)   GM-Opel 
 
Norddeutscher Rundfunk radio of Hamburg (2/10) commented: "There is 
no guarantee for the success of Opel's current restructuring plan to 
keep jobs in Germany, but it could be possible that General Motors 
will soon change its plans again, shifting production to other 
countries or continuing to cut jobs.  According to GM, part of the 
assistance for Opel should come from the so-called 'Deutschland 
Fund' for needy companies, which was created to alleviate the impact 
of the economic and financial crisis.  But the problem is that 
Opel's misery has nothing to do with the financial crisis....  There 
is no doubt that, after a few cosmetic changes, the LQnder minister 
presidents will approve [GM's] request; they will always do it by 
referring to a potential loss of jobs. But this is not reasonable. 
On the contrary." 
 
National radio station Deutschlandfunk (2/9) commented: "8,300 jobs 
will be cut in Europe, but in order to achieve this goal, GM demands 
comprehensive subsidies...but it would be wrong to expect further 
funds from Detroit.  That is why the European government should 
think twice before distributing further state guarantees because 
there is a great danger that further tax funds would be pointlessly 
wasted.  It is a fact that General Motors is urgently dependent on 
efficient and environmentally friendly cars from Europe, especially 
for the American market.  That is why GM must clearly use more funds 
for the restructuring than it has announced thus far.  This is the 
necessary signal that GM also believes in Opel. But no government 
and no state parliament should accept GM's position of dumping the 
risks of the restructuring plan on the European taxpayers and also 
dictating the rules of the game." 
 
Under the headline: "Parsimonious," Frankfurter Allgemeine (2/10) 
noted: "With another state loan, Opel boss Nick Reilly wants to 
finance the restructuring of the company.  The Economics Ministry is 
right to wonder whether General Motors is unable to finance the 
restructuring on its own.  It is right that GM and indirectly Opel 
receive a lot of funds from Washington but the result was that the 
U.S. state has become the majority owner and has the right to 
receive future dividends.  However, the German taxpayer has a few 
plants and property as security.  There are no guarantees for the 
preservation of jobs.  Apart from this fact, it would not be useful 
to offer loans because other competitors such as Volkswagen must 
 
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deal with the overproduction of cars on their own." 
 
According to Sueddeutsche Zeitung (2/10), it would be a "bad deal" 
to accept GM's restructuring plan.  "There are good reasons not to 
accept his offer," the daily argued, and added: "First, GM said that 
the overall costs of the restructuring plan would be 3.3 billion 
euros, but only 600 million are paid by GM itself.  For a company 
that was bailed out last year with 50 billion dollars and that is 
today boasting that it would be able to repay the money soon, this 
is too little.  GM should at least pay half the restructuring cost 
for Opel.  Second, the Americans hope to get funds from the 
'Deutschland Fund" which was set up to help companies which are in 
trouble because of the financial crisis.  But is this the case with 
Opel?  An exception for Opel would be a precedent with unforeseeable 
consequences.  Third: GM wants to invest 11 billion euros in Europe. 
 But what GM does not say is that, if business is bad and if GM does 
not make a profit, then there will be no 11 billion euros.  If that 
is the case, the billions which the taxpayers are supposed to pay 
would be in vain." 
 
MURPHY