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RR RUEHAG RUEHLZ
DE RUEHRL #0183/01 0471243
ZNR UUUUU ZZH
R 161243Z FEB 10
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC 6552
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 2025
RUEHLO/AMEMBASSY LONDON 0754
RUEHFR/AMEMBASSY PARIS 1270
RUEHRO/AMEMBASSY ROME 2771
RUEHNO/USMISSION USNATO 1787
RUEHVEN/USMISSION USOSCE 0948
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 000183 
 
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 XF EMS CH PTER US
SUBJECT: MEDIA REACTION: AFGHANISTAN, MIDEAST, GREECE-EU, 
U.S.-CHINA, EU-U.S., US-OBAMA;BERLIN 
 
¶1.   Lead Stories Summary 
¶2.   (Afghanistan)   ISAF Offensive 
¶3.   (Mideast)   Secretary Clinton in the Mideast 
¶4.   (Greece-EU)   Stability of the Euro, Goldman Sachs Involvement 
¶5.   (U.S.-China)   Obama Receives Dalai Lama 
¶6.   (EU-U.S.)   SWIFT 
¶7.   (U.S.)   Obama Government 
 
 
¶1.   Lead Stories Summary 
 
Print media centered on the debate over Foreign Minister 
Westerwelle's controversial remarks on the recipients of the Hartz 
IV social security benefits.  Die Welt headlined: "Bundeswehr 
Expects Long Fight in Afghanistan" and featured an article by 
Bundeswehr chief of Staff General Wieker on the NATO mission in 
Afghanistan.  Editorials focused on the debate over social benefits 
in Germany and the assistance Goldman Sachs and other U.S. 
investment banks gave to Greece in hiding its financial problems 
from the EU.  ZDF-TV's early evening newscast heute led with a 
report on the train crash in Belgium, while, ARD-TV's early evening 
newscast Tagesschau reported on the reactions to FDP leader 
Westerwelle's remarks concerning the social welfare state in 
Germany. 
 
¶2.   (Afghanistan)   ISAF Offensive 
 
Under the headline "In the front-line," Sddeutsche (2/16) remarked: 
"This time around, everything was supposed to be different.  That's 
what NATO promised.  For days, the military alliance has warned 
civilians of the largest offensive against the Taliban in southern 
Afghanistan.  However, shortly after the beginning of Operation 
Together, a misguided missile killed numerous civilians.  NATO 
Commander McChrystal publically apologized for the tragic incident. 
This is a new tone, but does not change anything about the fact that 
the death of civilians is playing into the hands of the Taliban.  As 
a result, they can portray themselves as liberators....  The people 
have little confidence in the foreign troops.  Many Afghans don't 
differentiate between the Taliban and the army - they have a human 
need:  a life without violence and fear.  The people in the unstable 
province of Helmand don't have this yet." 
 
Die Welt (2/16) opined on its front-page: "The offensive is the acid 
test for the Pentagon's strategy to capture the territory, hold and 
develop it, hand it over to the Kabul government and then begin its 
withdrawal as of summer 2011.  The troop increase has made the 
things that are happening now part of Obama's war.  This is about 
the future of the government in Washington. However, above all, this 
will decide the nature of Islam - friend or enemy - the West will 
meet in the future." 
 
Frankfurter Allgemeine (2/15) editorialized on its front-page: "The 
largest military operation since the ousting of the Taliban in 
December 2001 started last weekend in southern Afghanistan. This is 
the moment of truth for ISAF Commander McChrystal...  Will he 
succeed to drive out the insurgents from their stronghold and avoid 
civilian victims?  ....  Being in a superior position, ISAF and 
Afghan troops apparently took the city of Marjah quite easily. 
However, it will take weeks until every house is searched.  The 
Afghan government will then face the real test.  It must show that 
it can bear responsibility." 
 
Berliner Zeitung (2/15) commented: "Do you still remember Operation 
Khanjar?  It only started seven months ago in Helmand province. 
U.S. troops, British allies and several units of the Afghan army 
tried to take two districts in the Taliban stronghold. The military 
effort was only surpassed by the media hype.  However, we never read 
anything about a successful end. Since last weekend, the region is 
 
BERLIN 00000183  002 OF 005 
 
 
seeing Operation Together.   This operation is now being sold as the 
first large operation since the announcement of Obama's new 
strategy.  It is now said that after the ousting of the Taliban, 
sufficient troops will remain there to prevent the insurgents from 
returning to region.  Do you believe it?  Those who don't believe it 
are among the regional tribal leaders.  They know the Taliban 
better, since they have been their neighbors for some time.  They 
reached an agreement with them already before the foreign troops 
came.  And they will reach an agreement with them when the foreign 
troops are gone again." 
 
¶3.   (Mideast)   Secretary Clinton in the Mideast 
 
Berliner Zeitung (2/16) editorialized: "Iran is coming under 
increasing pressure.  The Western countries are of course trying to 
prevent the country from enriching uranium to build a nuclear bomb. 
The UN Security Council is supposed to impose tougher sanctions 
soon.  Secretary Clinton is travelling the region to get the support 
of Sheiks.  Israeli Prime Minister Netanyahu is currently trying to 
get the Russians on board.  During the debate at the UN Human Rights 
council in Geneva, representatives of the western countries used the 
opportunity to condemn the massive violations of human rights in 
Iran: arrests, death penalties, and the persecution of the 
opposition.  Although this problem has always been on the agenda of 
the West, it was only a minor issue compared with the nuclear 
dispute.  However, those who express their solidarity with the green 
movement must take care of its supporters.  They must do this all 
the time and not just when Iran is supposed to be put under more 
pressure over its nuclear program, because otherwise human rights 
would only be part of a poker game." 
 
¶4.   (Greece-EU)   Stability of the Euro, Goldman Sachs Involvement 
 
All major dailies (2/16) carried reports that, among other banks, 
Goldman Sachs helped Greece hide its debt in order to join the 
European Monetary Union.  Frankfurter Allgemeine headlined; "Banks 
Helped Greece Hush up its Debt."  Sueddeutsche Zeitung carried a 
report under the headline: "EU Investigating Accusations Against 
Goldman - Brussels Demands Information on Potential Assistance of 
the Bank for Greece and Increases Pressure on Athens to Make even 
more Savings."  Tagesspiegel headline: "A Forgotten Deal is Stirring 
up the Mood - Goldman Sachs helped Greece years ago to Whitewash the 
Budget - German Politicians are Outraged." 
 
Under the headline: "Dirty Tricks," Frankfurter Allgemeine (2/16) 
argued: "Thus far, the falsification of debt payments has been a 
Greek problem.  But the latest turn in the financial scandal is all 
the more terrifying: these dirty tricks are possibly much more 
widespread then previously assumed.  But because states are not 
requires to publish a balance sheet and because politicians are not 
liable, the game goes on.  The new accusations are now directed 
against banks...but the ones that have now really made themselves 
vulnerable are the European financial institutions, because they 
approved Greece entering the Monetary Union, even though it was 
clear that they could not rely on Greek debt figures.  If the second 
round of tricks with interest rates was really allowed - as the 
Greeks claim - then these rules were a scandal." 
 
Sueddeutsche Zeitung (2/16) headlined: "It was the Greeks," and 
judged: "The transfiguration of the financial crisis is now under 
full swing....but this mystification obscured a look at reality. 
The Greek government made unaffordable promises.   That is why it 
struck deals with the Goldman Sachs investment bank which hid te 
real extent of Greece's state debt from the EU.  That is why the 
proverb continues to remain valid that is spreading in Brussels. 
There are lies, brazen lies, and Greek statistical data.  Yes, 
Goldman Sachs helped deceive and even profited from it.  The bankers 
were no sirens but they were driven by competition, which almost 
 
BERLIN 00000183  003 OF 005 
 
 
forced them to offer all the financial products to those who were 
willing to pay for them, including governments.  If we want to learn 
a lesson from the Greek financial crisis, then it is this one.  The 
EU needs the authority to improve control of its member states, and 
the financial markets need rules which will rein in competition." 
 
Handelsblatt (2/16) opined: "No one should be surprised at reports 
that Goldman Sachs helped Greece cover up its financial problems 
with swap deals.  It was the large investment banks which built up a 
system of shadow banks before the financial crisis which only served 
to bypass existing capital requirements.  But the banks should now 
rethink and approve a code of ethics in their business with the 
public sector. They should do so in their own interest, because the 
taxpayers will not eternally watch how an industrial sector that was 
saved with a lot of public money makes a fool of the public again 
and again.  If the banks continue to pursue their current policies, 
they will get into increasing trouble." 
 
Regional daily KQlnische Rundschau (2/16) wondered "what is the 
lesson from the Greek crisis" and judged: "The euro countries must 
pay greater attention on whom they want to accept in the euro zone. 
But the main thing is to realize that it is not enough to warn 
member countries that they would soon exceed the questionable 
three-percent level.  What Europe needs is an effective, mutual 
control of budget discipline and competitiveness - i.e. an economic 
government that intervenes at the right time." 
 
MQrkische Oderzeitung of Frankfurt on the Oder (2/16) opined: 
"Politicians in Germany and elsewhere should be careful not to 
burden the taxpayer again as they did with respect to the financial 
markets.  Nothing would be won if countries with poor budgetary 
discipline got assistance without fixing their structural problems. 
Should the German taxpayer again help out when the Greeks increase 
their retirement age from 61 to 63, even though he only draws a 
pension at 67?  Assistance for Greece would be the precedent that 
could then not be denied to other crisis countries such as Spain and 
Portugal.  The dogma of an 'eternal' monetary zone from which no one 
should leave could be smashed to pieces by reality." 
 
¶5.  (U.S.-China)   Obama Receives Dalai Lama 
 
Under the headline: "Obama Against Beijing," Sueddeutsche Zeitung 
(2/15) argued:  "The fact that President Obama will meet the Dalai 
Lama is a signal. By doing so, Obama is making up for a mistake, 
because the President missed a first opportunity to meet the Dalai 
Lama a few months ago.  What is the reason for this change of mind, 
which will certainly burden U.S.-Chinese relations?  As a matter of 
fact, Obama had no other choice.  Thus far, each U.S. president met 
the Dalai Lama over the past two decades.  This has always been 
considered as a commitment to human rights and as a warning to the 
Chinese leadership.  Over he past year, Obama avoided this signal 
and this was based on his intention to demonstrate to the leadership 
in Beijing that a new wind was blowing in Washington....  But Obama 
made too many concessions to China....  If Obama had not met the 
Dalai Lama right now, this would have caused an outrage among human 
rights organizations, and the Republicans would have accused him of 
giving into China.  As far as foreign policy is concerned, the 
President had no choice either.  Despite his extended hand, the 
Chinese obstructed Obama's policies.  Whatever the reasons, the 
Chinese are unwilling to make a compromise with the U.S. or to 
seriously cooperate.  In the end, however, there should not be 
confrontation for confrontation's sake.  This is a policy Obama will 
not pursue.  At issue is a balance of interests but in a way that 
the Chinese leadership understands better than a policy of an 
extended hand." 
 
Regional daily Lausitzer Rundschau of Cottbus (2/16) argued: "Now 
after many futile attempts to embrace him, the U.S. President dares 
 
BERLIN 00000183  004 OF 005 
 
 
to receive the Dalai Lama in the White House and - as could be 
expected the Politburo is foaming.  It is reason for hope that the 
overdue conflict with the increasingly arrogant Chinese leadership 
is now happening in the human rights question.  With the assistance 
of the Dalai Lama, Barack Obama could regain a bit of his 
credibility in foreign policy that made him a carrier of hope." 
 
¶6.   (EU-U.S.)   SWIFT 
 
Frankfurter Allgemeine (2/16) editorialized: "In the vote on the 
SWIFT agreement, European parliamentarians had to weigh security 
against data protection.  The governments of the EU countries gave 
more priority to security and, with it, the relations to the United 
States.  It is understandable that this provokes representatives of 
those parties that are in opposition at home.  However, it is only 
getting clearer now why even CDU and CSU politicians did not support 
the agreement.   To make sure that representatives of the CDU and 
CSU proved to be reliable partners of America, the Chancellery (we 
are probably talking here about Chief of Staff Pofalla) told 
Merkel's men shortly before the vote that the voting results would 
be noted.  However, such an involvement in their right to make 
decisions touches the pride of CDU and CSU representatives and made 
them vote with the Social Democrats, Greens and Communists.  It was 
well meant, but turned out badly." 
 
Josef Joffe commented in Tagesspiegel (2/16) on the vote:  "This is 
good for Europe and good for America.  Hardly anybody wants to stop 
Homeland Security from attacking freedom rights in the name of 
security.  The EU therefore did America a favor.  We must not allow 
a few hundred terrorists to dominate our way of life.  If the U.S. 
needs transfer data it must do what the rule of law requires: 
persuade a judge instead of fishing around in bank accounts.  After 
all, America embodied its bill of rights in the Constitution of 
1787, which were only earned in Europe over time." 
 
¶7.   (U.S.)   Obama Government 
 
Tagesspiegel (2/16) carried an editorial by its Washington 
correspondent under the headline: "Land Of Unlimited Anger," and 
opined: "America continues to remain a country of unlimited 
opportunities.  But currently, it is a country of unlimited anger 
and unlimited confusion about the political balance of forces. 
Never before, have so many Americans (73.4 percent) rejected 
Congress.  Never before, has the number of Americans who would not 
re-elect their Congressman or senator, been so great.  And this 
dissatisfaction is visible in all camps.  This mood should force 
both camps to make compromises and to regain the confidence of the 
people with practical successes.  But this anger has produced a 
protest groups such as the 'Tea Party' which rejects any compromise 
with Obama.  They represent only ten percent but the Republicans do 
not dare oppose this group.  Overwhelming majorities against 
everything, and, at the same time, hardly any prospect to find a 
majority in Congress for concrete projects - it seems that America 
remains ungovernable for the foreseeable future, at least until the 
Congressional elections in November.  But even those elections will 
not settle the question of power." 
 
According to Sueddeutsche Zeitung (2/13), "the United States is 
playing a special role in the debt theater.  The situation in the 
U.S. is extremely contradictory.  President Obama's budget has the 
highest ever deficit during a time of peace, but this does not worry 
the financial markets.  On the contrary, investors flee from the 
euro to the dollar....  But as far as politics is concerned, the 
Obama presidency has led the budget policy into a deep crisis.  It 
was primarily the fear of this deficit that resulted in the 
foundation of the 'Tea Party' and turned the mood in the country 
against the Democrats.  But this conservative revolt leads to a 
refusal to accept reality with respect to the long-term U.S. 
 
BERLIN 00000183  005 OF 005 
 
 
financial problems.  Without comprehensive reform, the cost of the 
healthcare system will blow up the U.S. budget in the next decade. 
Higher taxes will be unavoidable as will be spending cuts.  Everyone 
knows this but the political culture in Washington seems to prevent 
any form of compromise.  This blockade, this incapability to resolve 
obvious problems, let us fear about long-term security and the U.S. 
leading role in the world.  During the worst days of the financial 
crisis, the international community took unprecedented steps and 
coordinated action to prevent the worst.  Now it is important to 
prevent long-term and possible irreversible consequential damages." 
 
DELAWIE