MEDIA REACTION REPORT - Hamas Elections Aftermath

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SUBJECT: MEDIA REACTION REPORT - Hamas Elections Aftermath
President Bush - State of the Union
PARIS - Monday, January 30, 2006

(A) SUBJECTS COVERED IN TODAY'S REPORT:

Hamas Elections Aftermath
President Bush - State of the Union

B) SUMMARY OF COVERAGE:

Domestic stories dominate, with the hostile take over attempt
of France's Arcelor by India's Mittal Steel in the lead this
weekend and in today's economic press. In international news,
Israel's stance towards Hamas, Europe and the U.S.'s questions
about what attitude to adopt are today's top stories. (See
Part C) Le Figaro leads with "Should Financial Aid to the
Palestinians Be Cut Off?" Alexandrine Bouilhet comments:
"Europe may be tempted to align with America's intransigence.
The EU remains firm about the principles, and like the U.S.,
is hesitating about using financial sanctions that may
penalize the people." Le Monde interviews Europe's FM Javier
Solana: "A terrorist group does not gain legitimacy because it
has won an election."

Le Journal du Dimanche interviews David Frum, former Bush
advisor and the man who coined the phrase "axis of evil," on
the Hamas victory: "Little is said about President Bush's plan
to spread democracy, and that is that democracy forces
leaders, but also the people, to be accountable. The
Palestinians have chosen people who promised integrity but
will deliver violence and instability. This says a lot about
Palestinian society."

Liberation reports on the disappointment felt by Iraqis
because the Saddam trial has been disrupted by resignations
and interruptions, while Le Journal du Dimanche carries a full
page report on "The Hidden Wounds of Iraq's Veterans" by Karen
Lajon who interviews wounded soldiers at the National Naval
Medical Center in Bethesda. "The obsession with zero casualty
has brought on a new reality: nine wounded for one casualty,
and one amputee out of three." A marine is interviewed to
conclude the article: "Yeah, I guess it is a positive mission.
We brought freedom and democracy to the Iraqis. I do not
regret having served in the Marines. But I have contradictory
feelings. What happened had to happen. But we must draw the
lesson."

Regional L'Alsace in its editorial wonders "why President Bush
chose to comment on Abu Gharaib at this time." And goes on to
list all the negative issues which the President will have to
deal with in his State of the Union message. (See Part C)

Liberation devotes a three-page report to "New Orleans, The
Ghost Town" as announced on their cover. Inside, editorialist
Gerard Dupuy says Katrina "showed the world the dark face of
Louisiana." Dupuy who titles his column "Abandonment"
criticizes the lack of federal reconstruction efforts, noting
that private initiative is favored. One story reports that
"Louisiana is stagnating in the ruins," while another notes
that "aid is slow in coming."

In another U.S. related story, Alan Greenspan's departure on
Wednesday is front-paged in La Tribune: "The U.S. Turns the
Greenspan Page." La Tribune comments: "Greenspan contributed
to major growth, but he leaves behind abysmal deficits and a
worrisome real estate bubble. Bernanke is taking over just
when the U.S. economy is slowing down."

But what holds the attention of the economic papers is the
"hostile" attempted takeover of Arcelor by the Indian company
Mittal. Arcelor rejected Mittal's offer. La Croix's editorial
believes the hostile takeover will serve as a "test for
Europe. All must be done to find an alternative solution to
Mittal's takeover of Arcelor." France Soir's headline: "Hold-
up on Steel" and editorial put forward that "it is a happy
coincidence that this takeover is happening at the same time
as the close of the two opposing summits in Davos and in
Caracas because this serves to remind governments of the
insubstantiality of borders with regard to markets." In La
Tribune, editorialist Francois-Xavier Pietri comments: "Beyond
Arcelor and its fate, what is at stake is the future of
Europe's major industries, caught as they are between the
proverbial North American rock and the Asian hard place."
Coincidentally, Le Journal du Dimanche carries an opinion
column asking "In 2010, India or China?" while Le Monde
carries an analysis entitled: "China and India Supplant
Europe."

(C) SUPPORTING TEXT/BLOCK QUOTES:

Hamas Elections Aftermath

"A Narrow Path in Face of Hamas"
Pierre Rousselin in right-of-center Le Figaro (01/30): "The
West has a narrow path in which to maneuver in face of Hamas,
forcing it to re-assess its peace process. On the one hand,
one cannot punish the Palestinian people for having taken part
in a political process, which no one is contesting. To do this
would mean opening a door to more radicalization. On the other
hand we cannot help finance a radical movement which today
questions the legitimacy of Israel and can tomorrow call for
its destruction. If we adopted this line of conduct, it would
mean that the peace process has created a monster. The stakes
go well beyond the Palestinian situation. Western democracies
need to define the rules that must be applied to radicalism.
because electoral legitimacy is not enough. As the EU FM
Solana said, an electoral victory does not give legitimacy to
a terrorist organization. Hamas must comply with four
conditions if it wants to be a political partner in the peace
process: it must disarm, renounce violence, recognize Israel
and adopt the commitments made by the Palestinian Authority to
date. But Hamas will not easily accept these conditions. and
may turn out to be a harsher negotiator than the PLO. The
international community can play a major role, as long as it
is aware that the slightest sign of internal disagreement will
be exploited by Hamas. The next few weeks will be grueling."

President Bush - State of the Union

"A Campaigning President Bush"
Francois Becet in regional l'Alsace (01/30): "All of a sudden
today President Bush is `regretting' the Abu Gharaib episode
and the photographs which he says `cover us with shame.' Has
it taken him all this time to realize this? And why is he
returning to this episode now? While it is true that Bush's
America continues to seek love and wants to sincerely, albeit
clumsily, spread democracy, there must be other reasons
explaining why President Bush is apologizing. His Sunday
message has probably something to do with the new terrorist
threats, which the Bush administration is taking very
seriously. President Bush may be trying to soften the
resentment felt in the Arab Muslim world. But President Bush
is also campaigning. He will need to explain much and be very
convincing. Acknowledging the Abu Gharaib mistake could be the
first step of a new Presidential offensive. We will know more
tomorrow, after his state of the union message. He will
reiterate his `optimism' and his determination to `defend the
cause of freedom in the world.' But we are also waiting for
concrete acts, especially in the Middle East." STAPLETON