MEDIA REACTION FOR MARCH 21-22, 2006: U.S. REMOVAL

UNCLAS REYKJAVIK 000097

SIPDIS

NATO FOR MIKIEWICA

SIPDIS

E.O. 12958: N/A
TAGS: NATO MARR PREL KPAO IIP ECA IC
SUBJECT: MEDIA REACTION FOR MARCH 21-22, 2006: U.S. REMOVAL
OF AIR ASSETS FROM NAVAL AIR STATION KEFLAVIK



1. Summary: March 21 press coverage of the U.S. decision to
remove most assets from the base at Keflavik was punctuated
by PM Asgrimsson's statement that the U.S. decision had
created a "climate of distrust between the two countries."
Coverage also focused on NATO SECGEN Scheffer's comments
that NATO had an obligation to help ensure Iceland's future
defense arrangements. The media speculated that the U.S.
had already decided to pull out of Keflavik when it invited
the Icelandic side to negotiations in February because the
base had been zeroed out in the Administration's FY'07
budget proposal. End Summary.

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PM Says U.S. Action Has Created "Climate of Distrust"
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2. Summary of report in March 21 news daily "Morgunbladid"
and March 20 Morgunbladid website report:

Almost three hundred Keflavik region residents attended a
meeting Monday evening where PM Asgrimsson spoke about the
withdrawal of U.S. from the base at Keflavik. The PM said
there were three tasks ahead following the US decision:
negotiations with the U.S. on Iceland's future defense,
Iceland needing to assume responsibility for additional
operations at Keflavik Airport, and addressing the general
employment situation in the region.

Asgrimsson said President Bush had conveyed a firm intention
to meet U.S. obligations under the bilateral defense
agreement and the NATO pact, and that it now remained to be
seen whether Iceland could rely on that U.S. commitment.
"It is obvious that a climate of distrust has been created
between the two countries, given the way in which these
issues have been handled over the last few days, and it
remains to be seen whether it will be possible to
reestablish trust between Iceland and the United States with
NATO assistance", Asgrimsson said, adding that some have
suggested that the defense agreement should now be
cancelled.

Asgrimsson said that U.S. proposals for a replacement
defense arrangement have not been forthcoming. "We have
never refused changes, but have so far not received any
proposals as to what exactly should replace the existing
capabilities."

Concerning his recent phone conversation with NATO SECGEN
Jaap de Hoop Scheffer, Asgrimsson said Scheffer had told
President Bush in their Washington meeting on Monday that
this was not only an issue for Iceland but also for the 26
NATO nations including the United States.

Asgrimsson quoted Scheffer as saying "NATO has obligations
to Iceland and Iceland has responsibilities to NATO. Thus
the Iceland-U.S. Defense agreement is a part of the defense
readiness of the whole Alliance." President Bush told him
that the issue had been decided, and called it modernization
of the defense of Iceland, and that the U.S. would soon
present its proposals as to how to achieve that.

The PM said he and Scheffer had agreed it is necessary to
wait and see what the U.S. proposals will contain, and to
subsequently review those ideas within NATO.

"In an earlier conversation he (Scheffer) said to me that he
intended to visit Iceland in the fall, but I emphasized that
I thought that an earlier visit is required for
consultations on the issue. He promised to come as soon as
possible," Asgrimsson said.

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Justice Minister's Comments at Political Science Conference
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3. Summary of Report in March 21 news daily "Morgunbladid":

Speaking at a conference of the Association of Political
Scientists, Justice Minister Bjorn Bjarnason said things
must be arranged in such a way that attacking Iceland would
not be something anyone would attempt without very careful
preparation, knowing that they would meet resistance and
that the country would not be easy prey. Continuing, he
said that from the government's perspective, the most
important task is to fill the gap that will be left with the
departure of the helicopters. They were the visible symbol
of national defense and the aspect of operations at Keflavik
Airport that affected Icelanders most. At the same time,
Bjarnason said it was not unexpected that the squadron was
leaving, as the Icelandic Government had proposed that
Iceland should take over these operations.

Bjarnason said the U.S. decision had not only provoked
discussion of Iceland's situation with respect to security
and defense, but it also concerns neighboring countries on
the eastern side of the Atlantic. He said that in his
opinion there should be an agreement with Denmark on rescue
missions and security in the North Atlantic, adding that the
United Kingdom and Norway would also be considering how
security could best be guaranteed in the region.

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Editorial Criticizes Characterization of Base Pull-out as
Modernizing Defenses; Emphasizes SECGEN Open to NATO Role
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4. Summary of Op-Ed in March 21 news daily "Morgunbladid":

The Americans will simply make fools of themselves if they
continue using the phrase "modernize the defenses," while at
the same time saying they will leave only insignificant
manpower and equipment in Iceland. They have not answered
the question as to how they will defend Icelandic airspace,
protection which all Nato countries believe they require.
Would people in cities and towns in the U.S. consider it
modernizing their defenses if doing so meant they had no air
defense?

It is of course positive that the NATO Secretary General
acknowledged Iceland's point of view on this whole issue and
spoke clearly about NATO's responsibility. It naturally
strengthens the hope that it will be possible to find a
solution to Iceland's defense needs in cooperation with the
alliance as a whole, if negotiations with the U.S. prove
unsuccessful.

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All News Channel Focuses on Base Being Zeroed out in Budget
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5. Summary of NFS TV Evening News Story, March 20:

It was clear in February that the Keflavik base would be
closed since the U.S. Government decided not to fund any
operations at the base after October 1st of this year.
Sources say that this was known as early as the beginning of
February and this was the reason why Iceland-U.S. defense
talks were initiated that month. President Bush submitted
his budget for FY07 to Congress on February 6 and the
Administration's budget proposal included not a single
dollar for the Keflavik base. Simply put, this means that
if funding is to be procured for any operation at Keflavik
after 1 October, those funds must either be taken from other
programs or additional funding sought from Congress. A U.S.
Department of Defense spokesman told NFS News that such a
supplementary budget request was highly unlikely.

NFS sources say that Foreign Minister Haarde's meeting with
Secretary of State Condoleeza Rice on February 2, and the

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follow-on security talks between U.S. and Icelandic
delegations, were the result of the fact that funding for
Keflavik was eliminated from the President's budget. The
U.S. wanted to make a last attempt to see how much Iceland
was willing to contribute to maintain the base. The
proposal was not adequate and thus the resulting
announcement of the base's closure. But a few days after
the talks, when the budget was submitted, it should have
been clear to the Icelandic authorities that they had
already lost the fight and the base would close before
October 1.

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French Offer Shoulder, Possibly Commerce
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6. Summary of article in March 22 "Morgunbladid":

French Foreign Minister Philippe Douste-Blazy told Haarde in
Paris 21 March that France was "concerned" about the
situation in the North Atlantic. Haarde told the press,
"France is not indifferent to the situation here in the
North Atlantic, and it is also concerned as a member of
NATO... our intention is to wait and see what the United
States proposes... and then we will discuss the issue with
the other NATO countries in circumstances require... the
French do produce all kinds of equipment for rescue
operations, and it is no secret that they are interested in
selling it... we do already have French helicopters for the
Coast Guard."

Van Voorst