MEDIA REACTION REPORT - Iran Middle East Bolivia -

UNCLAS SECTION 01 OF 03 PARIS 002889

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SUBJECT: MEDIA REACTION REPORT - Iran Middle East Bolivia -
Nationalized Oil Companies
PARIS - Wednesday, May 03, 2006

(A) SUBJECTS COVERED IN TODAY'S REPORT:

Iran
Middle East
Bolivia - Nationalized Oil Companies

B) SUMMARY OF COVERAGE:

The Clearstream scandal, PM Villepin's "Counter-attack" to
defend himself against accusations that he asked for an
investigation into Interior Minister Sarkozy's finances,
Iran and Bolivia's plan to nationalize foreign oil
companies are today's lead stories, with a number of
editorials commenting on the Clearstream scandal and the
need for "clarification," which, according to Le Figaro,
"is urgent." Le Figaro notes on its front page that the
foreign press is "severe" in its judgment of PM Villepin
and the end of Chirac's term. Liberation headlines:
"Villepin Answers But Says Nothing" in reference to
Villepin's attempts to defuse his accusers. Interior
Minister Sarkozy's 'selected' immigration plan is also
widely reported.

International news is dominated by Bolivia's
nationalization of foreign oil companies: for Les Echos,
"Latin America Is Becoming a New Zone of Tension." The
editorial asks: "Will we have a shortage of oil soon?"
Other international stories include the Palestinians'
plight. Liberation carries an op-ed by former Socialist PM
Lionel Jospin asking the EU to "revise its policy." Iran
and Nicholas Burns's presence in Paris is widely noted, in
Le Figaro, La Croix and Liberation. (See Part C) Under
Secretary Burns is extensively quoted by the Kuwait News

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Agency KUNA: "We believe there can be a diplomatic solution
to the problem of Iran trying to seek a nuclear weapons
capability. We have not given up on diplomacy and we are
focused on diplomacy."

An article in La Croix notes that the "Crisis in Darfur has
become a major issue for American public opinion." "Deputy
Secretary of State Robert Zoellick arrived yesterday in

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Nigeria to try to wrangle an agreement in the negotiations
between the Sudanese government and the rebel movement. The
U.S. is showing its concern for a conflict that is
increasingly important to public opinion in the U.S." In
the article, one Brookings Institute expert is quoted as
saying that no African issue has mobilized so many American
since the anti-apartheid movement in the 1980's.

(C) SUPPORTING TEXT/BLOCK QUOTES:

Iran

"The West Increases Its Pressure on Iran"
Alain Barluet in right-of-center Le Figaro (05/03):
"Deciding on the final text for the UN resolution which
would open the doors to possible sanctions, and as last
recourse to a military intervention, became yesterday a
difficult task which taxed the fragile 'unity' of the
international community. Nicholas Burns did indeed reaffirm
that the U.S. would favor diplomacy, but he also reminded
everyone that Washington 'was leaving every option on the
table.'"

"Progressive Response to Iran"
Agnes Rotivel and Gilles Biassette in Catholic La Croix
(05/03): "For the State Department's third ranking
official, Nicholas Burns, the international community must
send a 'very firm' message to Iran. 'The UNSC has no other
choice but to take the path of the UN charter's article 7'
which in case of a threat to world peace, opens, as a last
resort, the door to a military action. The world's major
powers want to increase their pressure on Iran while
preserving their unity. To reassure the Chinese and the
Russians, the Europeans are offering a step-by-step
approach. In Paris, an official insisted that 'chapter 7
does not necessarily lead to military action.' But a
resolution that does not invoke chapter 7, would not,
according to western diplomats, carry as much weight. In
order for the Russians to accept mentioning chapter 7 in
the resolution, the West could propose to offset the
resolution with generous offers in terms of nuclear and
commercial cooperation."

"The UNSC Tries for Unity"
Veronique Soule in left-of-center Liberation (05/03): "The
State Department's third ranking official, Nicholas Burns
spoke in favor of sending a 'very firm' message to Iran. If
the next resolution does not trigger a reaction, he has
offered that another resolution be drafted, which would
involve economic sanctions. although he excluded the oil
and gas sectors from such sanctions."

"Dissuading Iran?"
Jean-Francois Bayart, a director of research at the CNRS,
in left-of-center Le Monde (05/03): "Iran is legally a
prisoner of its 1968 commitment [to the NPT]. But countries
such as India and Pakistan not only have benefited from a
sort of allowance accorded to non-signatories but are also
actively courted by the U.S. and France. Despite the
Iranian president's hard-line attitude vis--vis Iran's
nuclear program. the notion that the regime wants this
technology in order to lessen its dependence on fossil
fuels should not be cast aside. Iran's decision to resume
the enrichment of uranium is symptomatic of its frustration
with regard to Europe and the U.S. and the fruitlessness of
negotiations over the last two years. An American nuclear
strike on Iranian installations would only serve to show
the absurdity of the first use of the nuclear bomb, since
1945, in the name of defending a non-proliferation treaty."

Middle East

"Wofensohn Throws in the Towel in the Middle East"
Patrick Saint Paul in right-of-center Le Figaro (05/03):
"The Quartet's emissary considers that Europe and America's
policy in the Israeli-Palestinian conflict is counter
productive. Since Hamas's electoral victory and Israel's
unilateral policy, the Quartet has been paralyzed.
Wolfensohn, the Quartet's emissary, has thrown in the
towel. His resignation may well signal a disengagement of
the Quartet. Wolfensohn feels that his action was destined
to fail ever since Hamas's victory. According to European
sources, the Quartet must now decide whether it will name a
successor for Wolfensohn, and whether the roadmap hasn't
become obsolete. These same sources wonder if it still
makes sense for the Quartet to play the role of
intermediary."

"Wolfensohn Gives Up"
Agnes Rotivel in Catholic La Croix (05/03): "James
Wolfensohn is disappointed and discouraged. His resignation
was expected, especially since the EU's decision to
partially suspend its aid to the Palestinian Authority, a
measure he has denounced. For him, it would be an error for
the West to starve the Palestinians in order to get their
support for the peace process."

"We Must Help the Palestinians"
Former Socialist PM Lionel Jospin pens an op-ed in left-of-
center Liberation (05/03): "The EU must alter the decision
it has taken since Hamas's victory. If the situation were
to continue (in the Palestinian territories,) it would lead
to a human tragedy, disastrous insecurity and maybe
political chaos."

Bolivia - Nationalized Oil Companies
"Our Thirst for Oil"
Jean-Marc Vittori in right-of-center Les Echos (05/03):
"The problem of an oil shortage does not come, at least not
yet, from a shortage of resources. It stems from high
demand in the U.S. and China, combined with the technical
and political vagaries of oil producing nations. Iran, and
now Bolivia's decision to nationalize foreign oil
companies. added to tension in Nigeria and the war in Iraq,
or Venezuela's latest demands. More than half of the
world's reserves have limited or forbidden access. Even if
some wealthy nations are tempted to intervene, the
political decisions taken by Moscow, Tehran, La Paz and
others are decisions taken by sovereign nations. Closing
the door to foreign investors will necessarily trigger
still higher oil prices." STAPLETON