AMBASSADOR MEETS WITH ECONOMIC MINISTER GLOS ON

C O N F I D E N T I A L BERLIN 000103

SIPDIS

SIPDIS

STATE FOR E, EB, EUR
USTR FOR AMBASSADOR SCHWAB, DDWOSKIN, SDONNELLY
USDA/FAS FOR RCURTIS, DYOUNG

E.O. 12958: DECL: 01/16/2016
TAGS: EAGR ETRD ENRG WTRO PREL GM
SUBJECT: AMBASSADOR MEETS WITH ECONOMIC MINISTER GLOS ON
DOHA, ENERGY


Classified By: Ambassador William R. Timken, Jr. for
reasons 1.4(b) and (d).


1. (C) Summary: Ambassador met with German Minister for
Economics and Technology Michael Glos to discuss the Doha
Development Round and cooperation on energy/environment
issues. The Ambassador also delivered STATE 4760 points on
Iran, which will be reported septel. Glos stated Doha's
successful completion is of great importance to Germany.
Citing the read-out he had received from the Chancellor of
her meeting with the President, Glos agreed both the U.S. and
Germany want a successful Round. He stated the EU and U.S.
working to achieve success would be another important
instance of global partnership. He agrees as well that we
need to act now to prevent a failure and risk damaging the
multilateral trading regime. Glos said he and the Chancellor
will make a concerted effort to move the EU -- and the French
-- toward a better offer. Despite elections in France, Glos
thought the EU could still improve on its current offer, but
added such movement would be contingent upon similar steps by
the U.S. Glos agreed as well that the World Economic Forum
January 24-27 provides opportunities for key players to
discuss how to move the Round forward. Glos noted he will
meet USTR Schwab in Davos. On energy, Glos agreed with the
Ambassador on the need to pursue clean-coal technology both
on environmental and energy security grounds and pointed to
Germany's advanced technology in this area. He welcomed the
President's and Chancellor's engagement on energy and
environment issues and looked forward to further cooperation.
End Summary.

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Participants
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2. (U) Glos was accompanied by State Secretary Bernd
Pfaffenbach, with whom he periodically and jocularly
consulted, as well as by Director General for International
Economics Karl Brauner and Staff Assistant Katja Gross. The
EMIN and tradeoff accompanied the Ambassador.

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Glos on Completing Doha
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3. (C) Affirming the Ambassador's readout of Chancellor
Merkel's and President Bush's meeting and their mutual desire
to complete a successful Round, Glos said the Chancellor
reported to the Cabinet that the U.S., starting with the
President, indeed wants a successful Round. He said the
meeting between the President and Merkel and the Ambassador's
paying a call on him are excellent signals going into Davos
that the EU and U.S. are serious about completing Doha. Glos
noted Merkel's excitement about the chances for Doha, and
emphasized Germany has a great interest in successfully
completing the current multilateral round of trade talks. He
said the alternative to Doha is bilateral and regional trade
agreements, which would only compete against each other. He
acknowledged that a Doha success was very important to the
positive economic development in underdeveloped countries,
where lack of opportunity breeds terror. He thought the
multilateral trade regime -- and implied our economies as
well -- would suffer as a result.


4. (C) Glos stated that Germany has been continuing to
discuss Doha in the EU -- he mentioned a recent visit by
Commissioner Mandelson as well as a conversation Ministry of
Economics' State Secretary Bernd Pfaffenbach had recently
with WTO Director General Pascal Lamy. Glos thinks the EU
can move on its current position, despite French elections in
May. He opined that the elections in France presented a
challenge, but the importance of the Round would carry the
day. The Minister said, however, changes in the EU positions
depend on revised offers from the U.S. along with movement
from the G-20. Pfaffenbach noted EU Trade Ministers will
meet on February 11 with Doha as a main agenda item.
Pfaffenbach thought if the U.S. could provide --
confidentially -- some clear indications of where it could

SIPDIS
move, it would help EU trade ministers agree on a new EU
agriculture offer. Pfaffenbach indicated India and Brazil

have shown signs of movement in the right direction; however,
he thought France and Poland could be difficult. He also
said the German Agriculture Minister -- from Glos' CSU party
-- might also be problematic. Glos agreed Davos is an
opportunity to pursue some of these potential ways forward
and noted he would meet with USTR Schwab there. Glos said he
thought U.S. Trade Promotion Authority's July expiration date
made reaching a deal by end of March imperative.


5. (C) Glos asked for the Ambassador's thinking on Chancellor
Merkel's initiative to integrate more deeply the
transatlantic economic relationship. The Minister said it
would be a good sign for transatlantic relations if we can
work together to complete Doha. Deeper transatlantic
economic cooperation is a particular goal of the Chancellor's
during Germany's EU presidency, according to Glos. Referring
to the President's meeting with Merkel, the Ambassador noted
President Bush's interest in advancing transatlantic economic
interests, but stressed the President did not want to draw
attention and effort away from successfully completing Doha,
a point the President had made to the Chancellor and with
which she had agreed. Ambassador told Glos that the
President has instructed a deputies-level working group to
examine the German proposal and see what can be achieved
before the April EU-U.S. Summit. He noted the Chancellor's
economic advisor, Jens Weidmann, is in Washington talking
about advancing Doha and Merkel's transatlantic marketplace
initiative.

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Energy
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6. (C) Minister Glos, whose portfolio includes energy, agreed
that coal is an important energy resource for reducing
dependence on oil, which, he added, tends to come from
unstable countries or otherwise less than secure sources of
supply. Glos also noted advancements of Germany's power
plant industry. He said the private sector is the agent that
needs to drive technological advancement in clean-coal
technology as well as carbon sequestration, but governments
may be able to take steps to clear the way forward. He said
he was encouraged by Chancellor Merkel's and President Bush's
statements on emissions. He thought the goals of the Kyoto
Agreement are too ambitious and do not take the world's
economic realities into account. That said, Glos
acknowledged the domestic political pressures to meet these
goals. He agreed with the Ambassador that U.S. and German
industry should work together to develop and make available
worldwide clean-coal and other technologies that will improve
energy security and reduce emissions.
TIMKEN JR