Identifier
Created
Classification
Origin
07BERN29
2007-01-12 13:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bern
Cable title:
SCENESETTER FOR USG PARTICIPANTS IN THE 2007 WORLD
how-toVZCZCXRO6837 PP RUEHIK RUEHYG DE RUEHSW #0029/01 0121303 ZNR UUUUU ZZH P 121303Z JAN 07 FM AMEMBASSY BERN TO RUEHC/SECSTATE WASHDC PRIORITY 3568 INFO RUEHZG/NATO EU COLLECTIVE PRIORITY RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUEHGV/USMISSION GENEVA PRIORITY 2647
UNCLAS SECTION 01 OF 03 BERN 000029
SIPDIS
SIPDIS
SENSITIVE
STATE FOR E, EUR, H, DS
TREASURY FOR DEPUTY SECRETARY KIMMITT AND U/S TIM ADAMS
DHS FOR SECRETARY CHERTOFF
E.O. 12958: N/A
TAGS: PREL ETRD ASEC SZ
SUBJECT: SCENESETTER FOR USG PARTICIPANTS IN THE 2007 WORLD
ECONOMIC FORUM ANNUAL MEETING IN DAVOS
-------
Summary
-------
UNCLAS SECTION 01 OF 03 BERN 000029
SIPDIS
SIPDIS
SENSITIVE
STATE FOR E, EUR, H, DS
TREASURY FOR DEPUTY SECRETARY KIMMITT AND U/S TIM ADAMS
DHS FOR SECRETARY CHERTOFF
E.O. 12958: N/A
TAGS: PREL ETRD ASEC SZ
SUBJECT: SCENESETTER FOR USG PARTICIPANTS IN THE 2007 WORLD
ECONOMIC FORUM ANNUAL MEETING IN DAVOS
--------------
Summary
--------------
1.(U) Following is Embassy Bern's scenesetter for
participants in the World Economic Forum (WEF) 2007 Annual
Meeting in Davos, Switzerland, January 24-28. The first
section provides an overview of the Forum, the second section
reviews U.S.-Swiss bilateral issues, and the third presents
the essentials of the Swiss political system. End summary.
--------------
World Economic Forum Annual Meeting in Davos
--------------
2.(SBU) The Annual Meeting of the World Economic Forum in
Davos is the largest event of its kind in the world, thus
offering a useful opportunity for officials to convey the USG
message and to hear what leaders from around the world are
thinking. Within the WEF, there remains considerable
discussion on how to balance the size of the meeting --
intimacy is difficult at 2,200 participants -- with the
desire for a broad variety of discussion themes. Also
controversial is the extent to which celebrities in the past
have overshadowed the more substantive contributions of
political, economic, and social leaders. There is plenty of
gloss to the WEF, but the more interesting aspects of the
meeting are usually to be found among the sober meetings and
informal networking available to participants.
3.(U) The Geneva-based World Economic Forum (WEF) is an
independent international organization, with a
self-proclaimed commitment to "improving the state of the
world." It can be thought of as a large think tank with
global mobility. The WEF's aim is to be a leader in
identifying strategic issues and providing a platform for
decision-makers -- from government, business, and the media
-- to effect change. WEF meetings are funded by membership
fees from about a thousand global companies.
4.(U) The annual January meeting in Davos is the WEF's
signature event. The exclusive invitation list includes the
leaders of member companies, as well as influential leaders
from governments, multilateral organizations, academia,
media, and NGOs. The program for the WEF can be compared to
an annual professional meeting, with panels, lectures,
speeches, and theme dinners. Participants must choose
beforehand which program elements they wish to attend. This
year's theme is "the Shifting Power Equation."
5.(U) WEF organizers expect to limit the number of invitees
this year to 2,200, down from last year's 3,000, in order to
regain its original mission as a small, informal gathering.
Even at this size, however, the WEF Annual Meeting in Davos
remains the world's largest private gathering of global
leaders. Members of the Swiss government participate in WEF
meetings, but do not direct the agenda. Swiss security
services are deployed to protect the event, however.
Security within the Davos Conference Center and select hotels
restricts entry to invited WEF guests only, with very limited
exceptions for security details. Lodging for non-invitees is
scarce and very expensive.
6.(U) The atmosphere of Davos makes the WEF a unique event
and provides USG officials with numerous opportunities to
advance U.S. foreign policy objectives. Likely attendees to
the 2007 WEF include 25 heads of state or government,
including UK Prime Minister Blair, German Chancellor Merkel,
Brazilian President Lula, Mexican President Calderon, and
King Hussein of Jordan. Likely USG cabinet attendees include
Energy Secretary Bodman, DHS Secretary Chertoff, Labor
Secretary Chao, United States Trade Representative, Susan
SIPDIS
Schwab, and Agriculture Secretary Johanns. Sub-cabinet
attendees include Treasury Deputy Secretary Kimmitt and
Treasury Under Secretary Adams, and State Under Secretary
Sheeran. Likely Congressional attendees include about 10
senators and 5 representatives.
--------------
U.S.-Swiss Bilateral Ties
--------------
BERN 00000029 002 OF 003
7.(SBU) Switzerland is neither a member of the European
Union, nor NATO -- a unique status among major Western
European nations. Switzerland's prominent banking sector,
advanced technological sector, diplomatic good offices,
humanitarian tradition, and status as Protecting Power for
the United States in Tehran and Havana make healthy bilateral
relations important. The bilateral relationship has been
fundamentally strong, but was strained during the past ten
years, first due to the Holocaust Assets issue and then Swiss
objections to USG policies vis a vis Iraq, Guantanamo, and
the broader war on terrorism. Recognizing that a drift in
bilateral ties was not in Switzerland's own interest, the
Swiss Federal Council (cabinet) decided in May 2005 to
enhance cooperation in the political, counter-terrorism/law
enforcement, and trade spheres. These efforts resulted in
the signing of three agreements in 2006: The Framework
Agreement on Enhanced Political Cooperation; the Operative
Working Agreement on Counterterrorism Cooperation; and the
Trade & Investment Cooperation Forum.
8.(U) Political Cooperation: The Swiss have deployed 200
soldiers to Kosovo, about 20 to Bosnia, and a handful to
Afghanistan. The Swiss public's adherence to traditional
neutrality, however, has slowed government efforts to double
Switzerland's peacekeeping strength. The Swiss and U.S.
governments engage in regular consultations to pursue
cooperation in areas of key mutual interest. Regions include
the Balkans, the Broader Middle East and North Africa
(BMENA),Sudan, South & Central Asia, and Latin America.
Themes include terrorist finance, counterterrorism,
international law, humanitarian disaster relief, Muslim
integration, and UN reform. The U.S. and Switzerland have
recently co-hosted international conferences on bioterrorism,
terrorist finance, and the elimination of plutonium producing
plants in Russia. U.S. and Swiss aid workers are looking at
joint projects for helping Kosovar and Bosnian societies
transform. For Sudan, Swiss and U.S. officials facilitated
the north-south peace agreement and security officials are
exploring areas of cooperation on rehabilitating fighters to
civilian life. The Swiss are donors toward Foundation for
the Future programs to aid civil society in the BMENA region.
9.(U) Counter-terrorism and Law Enforcement: Switzerland has
suffered no terrorist attacks, though terrorist organizations
appear to have used Swiss territory, banks, and cell phones
to provide some logistical support for attacks in New York,
Riyadh, Jerba, and Madrid. With EU member states getting
tougher on terrorists, there is concern that groups are
increasingly attracted to Switzerland as a safe-haven.
Following the attacks of September 11, 2001, Switzerland
invited the FBI to embed an agent with its Police
Counterterrorism Unit. Law Enforcement cooperation remains
nascent, however, as Swiss legal restrictions and practice
limit the information they share to that with a specific U.S.
nexus. An upgraded Operative Working Agreement to be
presented to Parliament in March 2007 should allow joint
investigations under limited conditions. On export controls,
the Swiss are signatories to all relevant multilateral
regimes. They approach export control and non-proliferation
in earnest, but have few resources dedicated towards
intelligence and enforcement. Expanding the level of
cooperation in these areas are among the Embassy's primary
goals.
10.(U) Trade & Investment: Switzerland has the 16th largest
economy in the world, is the 12th largest aid donor, the 4th
largest financial center, and a major source of direct
investment in the United States. The U.S. is Switzerland's
second largest trading partner. Swiss economic officials
initially approached the USG about pursuing a free trade
agreement in 2005. Though USTR and the Embassy encouraged
this movement, the Swiss Federal Council as a whole later
balked at commencing talks, not wanting to fully open
Switzerland's highly protected agriculture sector. Then USTR
Rob Portman instead proposed the creation of a Trade &
Investment Cooperation Forum to resolve more modest trade
disagreements. The USG and Swiss governments also
participate in a Joint Economic Commission (JEC) to review
broad economic themes. This year's WEF will feature a JEC
BERN 00000029 003 OF 003
panel including USTR Schwab, FedEx CEO Smith, Swiss Economics
Minister Leuthard, and Nestle CEO Brabeck.
-------------- --
Political System: How the Swiss Make Decisions
-------------- --
11.(SBU) Switzerland boasts one of the world's most
federalized political systems; considerable authority still
rests with individual communities and the 26 cantons
(states). The constitution of 1848 was based on the American
constitution, with a part-time bicameral legislature and only
limited competencies assigned to the central government. The
seven-member Federal Council (cabinet) is the executive
authority. The presidency is largely ceremonial and rotates
among the federal councilors for one-year terms. All four
major parties -- ranging from the left-wing Social Democrats
to the right-populist Swiss Peoples Party -- have at least
one seat on the Federal Council, meaning that decisions are
necessarily by consensus. Government decisions can be
challenged by popular referendum. The dispersal of power
throughout the political system has served as both a
guarantor of personal liberty and a brake on political
change, for good or ill.
12.(SBU) Justice/Police Minister Christoph Blocher and
Defense/Homeland Protection Minister Samuel Schmid are both
from the right-populist Swiss Peoples Party, though they are
often seen as political rivals. The two oversee internal and
external intelligence services, respectively and each is
pushing his subordinates to cooperate better. Minister of
Economic Affairs Doris Leuthard is from the centrist
Christian Peoples Party, is generally pro-free-trade, and is
the newest member of the Federal Council, having joined in
July 2006. Finance Minister Hans-Rudolf Merz and Home
Affairs Minister Pascale Couchepin are both from the centrist
Liberal Party. Social Democrat Micheline Calmy-Rey is
Minister of Foreign Affairs, is very pro-EU, and has often
been critical of the United States. Under the influence of
more sober DFA advisors, she has mellowed since beginning her
tenure as Foreign Minister in 2003, and supports a greater
Swiss peacekeeping presence abroad. Rounding up the Federal
Council is relatively moderate Social Democrat Moritz
Leuenberger in charge of the Environment, Transport, Energy,
and Communications portfolio. Notwithstanding this division
of responsibility, major decisions within all portfolios are
reached by the Federal Council in its entirety, a factor
adding to Switzerland's distinct political personality.
CONEWAY
SIPDIS
SIPDIS
SENSITIVE
STATE FOR E, EUR, H, DS
TREASURY FOR DEPUTY SECRETARY KIMMITT AND U/S TIM ADAMS
DHS FOR SECRETARY CHERTOFF
E.O. 12958: N/A
TAGS: PREL ETRD ASEC SZ
SUBJECT: SCENESETTER FOR USG PARTICIPANTS IN THE 2007 WORLD
ECONOMIC FORUM ANNUAL MEETING IN DAVOS
--------------
Summary
--------------
1.(U) Following is Embassy Bern's scenesetter for
participants in the World Economic Forum (WEF) 2007 Annual
Meeting in Davos, Switzerland, January 24-28. The first
section provides an overview of the Forum, the second section
reviews U.S.-Swiss bilateral issues, and the third presents
the essentials of the Swiss political system. End summary.
--------------
World Economic Forum Annual Meeting in Davos
--------------
2.(SBU) The Annual Meeting of the World Economic Forum in
Davos is the largest event of its kind in the world, thus
offering a useful opportunity for officials to convey the USG
message and to hear what leaders from around the world are
thinking. Within the WEF, there remains considerable
discussion on how to balance the size of the meeting --
intimacy is difficult at 2,200 participants -- with the
desire for a broad variety of discussion themes. Also
controversial is the extent to which celebrities in the past
have overshadowed the more substantive contributions of
political, economic, and social leaders. There is plenty of
gloss to the WEF, but the more interesting aspects of the
meeting are usually to be found among the sober meetings and
informal networking available to participants.
3.(U) The Geneva-based World Economic Forum (WEF) is an
independent international organization, with a
self-proclaimed commitment to "improving the state of the
world." It can be thought of as a large think tank with
global mobility. The WEF's aim is to be a leader in
identifying strategic issues and providing a platform for
decision-makers -- from government, business, and the media
-- to effect change. WEF meetings are funded by membership
fees from about a thousand global companies.
4.(U) The annual January meeting in Davos is the WEF's
signature event. The exclusive invitation list includes the
leaders of member companies, as well as influential leaders
from governments, multilateral organizations, academia,
media, and NGOs. The program for the WEF can be compared to
an annual professional meeting, with panels, lectures,
speeches, and theme dinners. Participants must choose
beforehand which program elements they wish to attend. This
year's theme is "the Shifting Power Equation."
5.(U) WEF organizers expect to limit the number of invitees
this year to 2,200, down from last year's 3,000, in order to
regain its original mission as a small, informal gathering.
Even at this size, however, the WEF Annual Meeting in Davos
remains the world's largest private gathering of global
leaders. Members of the Swiss government participate in WEF
meetings, but do not direct the agenda. Swiss security
services are deployed to protect the event, however.
Security within the Davos Conference Center and select hotels
restricts entry to invited WEF guests only, with very limited
exceptions for security details. Lodging for non-invitees is
scarce and very expensive.
6.(U) The atmosphere of Davos makes the WEF a unique event
and provides USG officials with numerous opportunities to
advance U.S. foreign policy objectives. Likely attendees to
the 2007 WEF include 25 heads of state or government,
including UK Prime Minister Blair, German Chancellor Merkel,
Brazilian President Lula, Mexican President Calderon, and
King Hussein of Jordan. Likely USG cabinet attendees include
Energy Secretary Bodman, DHS Secretary Chertoff, Labor
Secretary Chao, United States Trade Representative, Susan
SIPDIS
Schwab, and Agriculture Secretary Johanns. Sub-cabinet
attendees include Treasury Deputy Secretary Kimmitt and
Treasury Under Secretary Adams, and State Under Secretary
Sheeran. Likely Congressional attendees include about 10
senators and 5 representatives.
--------------
U.S.-Swiss Bilateral Ties
--------------
BERN 00000029 002 OF 003
7.(SBU) Switzerland is neither a member of the European
Union, nor NATO -- a unique status among major Western
European nations. Switzerland's prominent banking sector,
advanced technological sector, diplomatic good offices,
humanitarian tradition, and status as Protecting Power for
the United States in Tehran and Havana make healthy bilateral
relations important. The bilateral relationship has been
fundamentally strong, but was strained during the past ten
years, first due to the Holocaust Assets issue and then Swiss
objections to USG policies vis a vis Iraq, Guantanamo, and
the broader war on terrorism. Recognizing that a drift in
bilateral ties was not in Switzerland's own interest, the
Swiss Federal Council (cabinet) decided in May 2005 to
enhance cooperation in the political, counter-terrorism/law
enforcement, and trade spheres. These efforts resulted in
the signing of three agreements in 2006: The Framework
Agreement on Enhanced Political Cooperation; the Operative
Working Agreement on Counterterrorism Cooperation; and the
Trade & Investment Cooperation Forum.
8.(U) Political Cooperation: The Swiss have deployed 200
soldiers to Kosovo, about 20 to Bosnia, and a handful to
Afghanistan. The Swiss public's adherence to traditional
neutrality, however, has slowed government efforts to double
Switzerland's peacekeeping strength. The Swiss and U.S.
governments engage in regular consultations to pursue
cooperation in areas of key mutual interest. Regions include
the Balkans, the Broader Middle East and North Africa
(BMENA),Sudan, South & Central Asia, and Latin America.
Themes include terrorist finance, counterterrorism,
international law, humanitarian disaster relief, Muslim
integration, and UN reform. The U.S. and Switzerland have
recently co-hosted international conferences on bioterrorism,
terrorist finance, and the elimination of plutonium producing
plants in Russia. U.S. and Swiss aid workers are looking at
joint projects for helping Kosovar and Bosnian societies
transform. For Sudan, Swiss and U.S. officials facilitated
the north-south peace agreement and security officials are
exploring areas of cooperation on rehabilitating fighters to
civilian life. The Swiss are donors toward Foundation for
the Future programs to aid civil society in the BMENA region.
9.(U) Counter-terrorism and Law Enforcement: Switzerland has
suffered no terrorist attacks, though terrorist organizations
appear to have used Swiss territory, banks, and cell phones
to provide some logistical support for attacks in New York,
Riyadh, Jerba, and Madrid. With EU member states getting
tougher on terrorists, there is concern that groups are
increasingly attracted to Switzerland as a safe-haven.
Following the attacks of September 11, 2001, Switzerland
invited the FBI to embed an agent with its Police
Counterterrorism Unit. Law Enforcement cooperation remains
nascent, however, as Swiss legal restrictions and practice
limit the information they share to that with a specific U.S.
nexus. An upgraded Operative Working Agreement to be
presented to Parliament in March 2007 should allow joint
investigations under limited conditions. On export controls,
the Swiss are signatories to all relevant multilateral
regimes. They approach export control and non-proliferation
in earnest, but have few resources dedicated towards
intelligence and enforcement. Expanding the level of
cooperation in these areas are among the Embassy's primary
goals.
10.(U) Trade & Investment: Switzerland has the 16th largest
economy in the world, is the 12th largest aid donor, the 4th
largest financial center, and a major source of direct
investment in the United States. The U.S. is Switzerland's
second largest trading partner. Swiss economic officials
initially approached the USG about pursuing a free trade
agreement in 2005. Though USTR and the Embassy encouraged
this movement, the Swiss Federal Council as a whole later
balked at commencing talks, not wanting to fully open
Switzerland's highly protected agriculture sector. Then USTR
Rob Portman instead proposed the creation of a Trade &
Investment Cooperation Forum to resolve more modest trade
disagreements. The USG and Swiss governments also
participate in a Joint Economic Commission (JEC) to review
broad economic themes. This year's WEF will feature a JEC
BERN 00000029 003 OF 003
panel including USTR Schwab, FedEx CEO Smith, Swiss Economics
Minister Leuthard, and Nestle CEO Brabeck.
-------------- --
Political System: How the Swiss Make Decisions
-------------- --
11.(SBU) Switzerland boasts one of the world's most
federalized political systems; considerable authority still
rests with individual communities and the 26 cantons
(states). The constitution of 1848 was based on the American
constitution, with a part-time bicameral legislature and only
limited competencies assigned to the central government. The
seven-member Federal Council (cabinet) is the executive
authority. The presidency is largely ceremonial and rotates
among the federal councilors for one-year terms. All four
major parties -- ranging from the left-wing Social Democrats
to the right-populist Swiss Peoples Party -- have at least
one seat on the Federal Council, meaning that decisions are
necessarily by consensus. Government decisions can be
challenged by popular referendum. The dispersal of power
throughout the political system has served as both a
guarantor of personal liberty and a brake on political
change, for good or ill.
12.(SBU) Justice/Police Minister Christoph Blocher and
Defense/Homeland Protection Minister Samuel Schmid are both
from the right-populist Swiss Peoples Party, though they are
often seen as political rivals. The two oversee internal and
external intelligence services, respectively and each is
pushing his subordinates to cooperate better. Minister of
Economic Affairs Doris Leuthard is from the centrist
Christian Peoples Party, is generally pro-free-trade, and is
the newest member of the Federal Council, having joined in
July 2006. Finance Minister Hans-Rudolf Merz and Home
Affairs Minister Pascale Couchepin are both from the centrist
Liberal Party. Social Democrat Micheline Calmy-Rey is
Minister of Foreign Affairs, is very pro-EU, and has often
been critical of the United States. Under the influence of
more sober DFA advisors, she has mellowed since beginning her
tenure as Foreign Minister in 2003, and supports a greater
Swiss peacekeeping presence abroad. Rounding up the Federal
Council is relatively moderate Social Democrat Moritz
Leuenberger in charge of the Environment, Transport, Energy,
and Communications portfolio. Notwithstanding this division
of responsibility, major decisions within all portfolios are
reached by the Federal Council in its entirety, a factor
adding to Switzerland's distinct political personality.
CONEWAY