MEDIA REACTION REPORT - Iran Middle East Bolivia -

UNCLAS SECTION 01 OF 03 PARIS 002889 SIPDIS DEPT FOR INR/R/MR; IIP/RW; IIP/RNY; BBG/VOA; IIP/WEU; AF/PA; EUR/WE /P/SP; D/C (MCCOO); EUR/PA; INR/P; INR/EUC; PM; OSC ISA FOR ILN; NEA; WHITE HOUSE FOR NSC/WEUROPE; DOC FOR ITA/EUR/FR AND PASS USTR/PA; USINCEUR FOR PAO; NATO/PA; MOSCOW/PA; ROME/PA. E.O. 12958: N/A TAGS: OPRC KMDR FR 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 SIPDIS 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 SIPDIS 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 �0A;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