Identifier
Created
Classification
Origin
07MUNICH81
2007-02-12 17:28:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Munich
Cable title:  

PUTIN AND GATES DOMINATE MUNICH SECURITY

Tags:  NATO OSCE PARM PREL GM IR AF RS 
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UNCLAS SECTION 01 OF 09 MUNICH 000081 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: NATO OSCE PARM PREL GM IR AF RS
SUBJECT: PUTIN AND GATES DOMINATE MUNICH SECURITY
CONFERENCE; AFGHANISTAN AND IRAN ALSO DISCUSSED

REF: 06 MUNICH 838

SENSITIVE BUT UNCLASSIFIED.

NOT FOR INTERNET DISTRIBUTION

SUMMARY
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UNCLAS SECTION 01 OF 09 MUNICH 000081

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: NATO OSCE PARM PREL GM IR AF RS
SUBJECT: PUTIN AND GATES DOMINATE MUNICH SECURITY
CONFERENCE; AFGHANISTAN AND IRAN ALSO DISCUSSED

REF: 06 MUNICH 838

SENSITIVE BUT UNCLASSIFIED.

NOT FOR INTERNET DISTRIBUTION

SUMMARY
--------------

1. (SBU) The February 9-11 43rd Munich Conference on
Security Policy (formerly known as "Wehrkunde") on "Global
Crises - Global Responsibilities" was dominated by
differing visions of the Transatlantic role in global
security. Chancellor Merkel, Secretary Gates, Senators
McCain and Lieberman, and most other participants focused
on the Transatlantic partnership as the key factor in
confronting 21st Century challenges, a vision welcomed
overwhelmingly by conference participants. Russian
President Putin and Iranian National Security Council
Chairman Larijani presented an alternate view of a world
made increasingly unstable by "unipolar" action by the
United States. Secretary Gates' disarming, pro-active,
and non-confrontational rebuttal to Putin stressed the
U.S. desire for effective multilateral responses to
complex global challenges. For more information on the
conference and links to speeches please visit
http://munich.usconsulate.gov/


2. (SBU) On the margins of the conference, Secretary Gates
met with Chancellor Merkel, Ukrainian President
Yushchenko, Italian Defense Minister Parisi, German
Foreign Minister Steinmeier and Defense Minister Jung,
Australian Foreign Minister Downer and Indian National
Security Advisor Narayanan. The ten-member CODEL
Lieberman/McCain (SEPTEL) held meetings which included:
the annual "Transatlantic Breakfast" hosted by German MFA
State Secretaries Silberberg and Boomgaarden; a meeting
with SPD Party Chairman and Rheinland-Pfalz Minister-
President Beck; NATO Secretary General de Hoop Scheffer,
and Australian Foreign Minister Downer. Deputy Treasury
Secretary Kimmitt, Ambassador Timken, USNATO Ambassador

SIPDIS
Nuland, and EUR PDAS Volker also held conversations with a
wide range of conference participants. Throughout many
sessions and meetings, U.S. participants emphasized the
importance of success in Afghanistan, and the need for the

Transatlantic and international community of democracies
to carry through on their commitments.

End Summary.

ISRAEL TALKS OF THREATS IN THE GREATER MIDDLE EAST
-------------- --------------


3. (U) At Friday evening's welcome dinner, hosted by
Conference President Horst Teltschik, Israeli FM Tsipi
Livni ardently described the conflict in the Middle East
as a "fight between the moderates and the radicals."
Israel is committed to a two-state solution, provided the
Palestinians acknowledge Israel's right to exist and
renounce violence. She described Iranian ideology as a
"real threat to the region and the world" and demanded the
international community demonstrate resolve in dealing
with this challenge. "Iran," said Livni, "is a regime
which mocks the Holocaust while threatening the world with
a new one." Finally, Livni urged the international
community to do more to secure the Lebanese border with
Syria to prevent the rearmament of Hezbollah.

MERKEL KICKS OFF WITH THEME OF SHARED RESPONSIBILITY
-------------- --------------


4. (SBU) German Chancellor Merkel's opening address on
Saturday morning called for an integrated strategic
approach to security policy to include civilian and
military elements. Merkel lauded the primacy of NATO, but
added that NATO's role in the 21st century should be
integrated into a civilian-military network. Overall
global areas of concern include issues such as the
protection of the environment, energy security, and human

MUNICH 00000081 002 OF 009


development. Despite its problems, NATO is still the best
forum for making decisions, and the Summit in Riga in
November and the Ministerial in Seville last week
demonstrate NATO's relevance in promoting freedom,
security, and responsibility. The Chancellor then gave a
rundown of regional conflicts and offered suggestions
where only international and multilateral cooperation
could lead to sustainable solutions.


5. (SBU) Merkel clearly stated that Iran must abide by
UNSC and IAEA decisions -- "no ifs, ands or buts about it"
-- or it will continue isolating itself. The
international community remains firmly united behind UNSCR
1737, but also remains committed to the offer developed by
the EU3 3 which would "assist the Iranian government to do
what is right for the Iranian people." She remained
cautiously hopeful that the first steps taken in Mecca
would reduce violence in the Palestinian territories and
lead eventually to a peaceful resolution of the Israeli-
Palestinian situation. The Quartet's efforts will
continue in this regard and the Chancellor called on the
new unity government to abide by Quartet principles.
Merkel also issued a stern warning to Syria's leadership
not to underestimate the international community's
commitment to defend Israel and Lebanon.


6. (U) Merkel expressed the European Union's readiness to
take undertake its largest ever civilian ESDP mission in
Kosovo. While the Ahtisaari proposal will be difficult
and will probably take some time, the solution cannot be
pushed off indefinitely. The EU remains committed to
continuing discussions with Serbia to ensure that country
moves forward. In the end, however, it is up to Kosovo
and Serbia to determine which path each will take.
Regarding Bosnia and Herzegovina, Merkel recommended
keeping the office of the High Representative a little
while longer. As a result of the sustained progress in
Bosnia, the international military presence can be
reduced. However, Merkel spoke of her concern that a
working constitution remains elusive.


7. (SBU) Merkel stressed that "cooperation between NATO,
the EU and Russia will be important for the future of
European security." Referring to the issue of U.S.
missile defense radar in Poland and the Czech Republic,
Merkel urged continued conversation with Russia despite
strongly held and differing positions. Most importantly,
Russia must demonstrate that it is a reliable partner in
energy security.


8. (SBU) Merkel described NATO's ISAF operation in
Afghanistan as a test for the alliance. While applauding
visible successes such as the fact that girls are now
allowed to go to school, Merkel warned that the Taliban
will put NATO's determination to the test. For Merkel,
Afghanistan is a good example for the integrated civilian-
military approach. Merkel called for more civilian
assets, but also urged that all elements need to be
enhanced. She called on all allies to do everything they
can to ensure the mission's success. Merkel concluded by
urging conference participants not to be pessimistic about
the future. She mentioned that Europe is much more stable
than anybody would have imagined when she was young, and
rhetorically asked why teenagers in Israeli and Palestine
cannot hope to live side by side in peace in the future as
well.

PUTIN DESCRIBES RUSSIA'S WORLD VIEW
--------------


9. (SBU) Using surprisingly frank words during his first
visit to the Security Conference, Russian President
Vladamir Putin criticized the West and the new "unipolar
world," leading one conference participant to comment
later that he hoped we had not seen the opening salvo in a
second cold war. Putin criticized U.S. foreign policy,
NATO and its enlargement, missile defense, and primarily
the United States.

MUNICH 00000081 003 OF 009




10. (SBU) Speaking calmly, but forcefully, he claimed the
U.S. had used its uncontested military might to create and
exploit a unipolar world. Putin said that under U.S.
dominance the world has become more destabilized and is
seeing more wars and regional conflicts. The "almost
uncontained hyper-use of force" and a disdain for the
basic principles of international law drives countries to
feel vulnerable, thus stimulating an arms race as these
now-insecure countries turn to weapons, and even weapons
of mass destruction, for security. He suggested that the
only legitimate authority to authorize military force is
the United Nations, and commented that NATO, the OSCE, and
the EU, are not the UN, and should not be considered to
have equivalent authority. Indeed, he said the OSCE had
become a "vulgar instrument" of the U.S. Responding later
to a question from Senator Jon Kyl, Putin noted that self-
defense also was a legitimate justification for the use of
force.


11. (SBU) Putin stressed Russian support for renewed
dialogue on non-proliferation, adding that Russia
continues to adhere to the NPT and criticized "the
militarization of outer space" which he said could provoke
another arms race. Putin also complained about how
Russia, "which threatens no one," was continually being
encircled by the NATO countries and questioned why a
missile defense system was being suggested for basing in
Poland, close to Russia's border.


12. (SBU) Bringing up the Treaty on Conventional Forces in
Europe (CFE),Putin noted the adapted treaty had been
signed seven years before, in 1999, yet only four states,
including Russia, had ratified so far. Resurrecting the
usual argument against complaints that Russia had not met
its obligations under the Istanbul Commitments, he claimed
the Russian army is currently in the process of leaving
Georgia, and while there remain 1,500 soldiers in Moldova,
they are "carrying out peacekeeping operations and
protecting warehouses with ammunition." Putin continued
that the U.S. stationing of "...so-called flexible
frontline American bases with up to five thousand men...
on our borders" represents a much more serious matter. He
asked rhetorically why NATO was expanding aggressively
toward a non-threatening Russia.


13. (SBU) In arguing his point that Russia was a threat to
no one, he claimed Russia's domestic system was open, and
reported that foreign companies participate in all major
Russian energy projects (up to 26 percent of oil
extraction in Russia is done with/by foreign investment).
He also claimed that inward investment to Russia
outnumbers outward Russian investment by a factor of
fifteen to one. Putin concluded his lecture by
complaining that Russia is called to play an increasing
role in the world, yet with a thousand years of history as
a nation, hardly needed advice on how to act independently
on the global scene. In the Q and A session he praised
Russian freedoms by noting that the political spectrum in
Russian allowed for both the Communist Party and Vladimir
Zhirinovsky's LDPR, and claimed there was no basis to
reports of suppression of NGOs. He also seemed to back
off a bit from his earlier harshness by describing
President Bush as a decent man and someone he could do
business with. Putin underscored Russian opposition to
Iran obtaining nuclear weapons.

EU EXPANSION, EU SKEPTICS
--------------


14. (U) During the first panel discussion, which
questioned whether the EU was indeed a regional model for
peace, security, and welfare as it nears its 50th
anniversary, Toomas Ilves, President of Estonia, responded
with a resounding yes. Ilves expressed concern, however,
that expansion fatigue among certain states, including new
members, could limit opportunities in the middle term to
admit new members. He also strongly chastised, in the

MUNICH 00000081 004 OF 009


presence of Austrian FM Ursula Plassnik, Austria and
France's requirement for popular referenda prior to
admitting new member states.


15. (U) Ilves noted that while the States on Europe's
borders were mainly democratic, the danger of backsliding
would remain. The EU perspective remains the only deal in
town and the Neighborhood Policy is just not enough. He
concluded by expressing surprise at Putin's remarks, which
had suggested the expansion of European democracies to
Russia's border was considered to be threatening.


16. (U) Ukrainian President Viktor Yushchenko warned that
the EU itself should not become the loudest Euro-skeptic.
He said Europe was internationally unique, and Ukraine
wanted to be a part of it. He reminded the audience how
Ukraine had shown responsibility by voluntarily giving up
possession of its nuclear weapons following the collapse
of the former Soviet Union. Ukraine remains interested in
developing partnerships with the EU on energy policy that
would focus on energy security, transparency, and the
safeguarding of transit countries' legitimate interests.


17. (SBU) Kurt Beck, Chairman of Germany's Social
Democratic Party (SPD) (the likely challenger to Angela
Merkel in the next election and a foreign affairs
neophyte),stated that Europe was a global example of
stability and economic prosperity. Beck welcomed Putin's
openness. He also suggested Turkey deserves a realistic
opportunity to join the EU, noting Turkey could act as a
bridge between Europe and the Muslim world. Referring to
the Non-Proliferation Treaty, Beck repeated a common SPD
theme that nuclear powers should hasten nuclear
disarmament. Beck described Iran's behavior on the
nuclear issue as unacceptable.


18. (U) Austria's FM Plassnik praised Europe as an
outstanding example of "applied multilateralism" and that
the European model has proven that management of diversity
was possible. She reiterated a main theme of Austria's
recent EU Presidency: that the Balkan states needed clear
guidelines for accession. However, she said, the EU now
has nearly a half billion "stakeholders" and they need to
be listened to when looking toward the future of EU
expansion and internal development.

NATO IN THE AGE OF GLOBAL CHALLENGES
--------------


19. (U) During the second panel discussion, NATO Secretary
General Jaap de Hoop Scheffer, referring to the conference
as the Munich Reality Check, sounded a positive note while
citing key successes that had been achieved by NATO since
their 50th Anniversary in 1999. NATO today is a better
and more effective organization, he said. He added that
NATO's greatest challenge remains Afghanistan and more
development and reconstruction assistance needs to be
directed there. He also called on all partners to remove
caveats on their ISAF contributions.


20. (U) The SYG stated that partnership is a force
multiplier, and while Putin's remarks earlier were, "not
helpful," Russia was a partner and the NATO-Russia Council
added value for both NATO and Russia. NATO enlargement has
brought democracy and the rule of law closer to Russia's
borders; this is good for Russia as well as NATO. He
continued that by NATO's 60th anniversary in 2009 he hoped
there would be a fully integrated training and equipping
program for the Afghan army; NATO would have at least one
more member and Serbia should be on the road to NATO
membership; there would be closer relationships with
Ukraine and Georgia; civil efforts would be better
integrated; and there would be a true strategic
partnership with the EU. In concluding, de Hoop Scheffer
said security isn't cheap, stating "you get what you pay
for," and urging member countries to do more to reach
their defense budgetary goals of two percent of GDP.


MUNICH 00000081 005 OF 009



21. (U) German DefMin Jung's speech closely followed the
themes of Chancellor Merkel's integrated approach to
security policy although he placed greater emphasis on
non-NATO forums and fields of Transatlantic cooperation,
including global warming and energy. He added that
organizations and actors should avoid duplication of
efforts and maintained that those best suited to achieve a
goal should focus in that area, mentioning NATO, the EU,
the UN, and other state and non-state actors. He stressed
that an integrated civilian/military approach is necessary
in Afghanistan, adding that NATO did not go there as an
occupier, but rather as a liberator. While acknowledging
differences between the north and west versus the south
and east in that country, Jung pointed to NATO's combined
responsibility and Germany's part in this effort,
including hosting the JCMB meeting in Berlin on January 30
and 31.


22. (SBU) Senator John McCain, continuing to discuss
Afghanistan, spoke out against national caveats stating
that "multilateral operations cannot tolerate unilateral
limits and still be successful." He called on Germany to
increase its police training efforts beyond current plans,
leading to much commentary among German participants, and
urged the EU to match America's pledge of $10 billion over
the next two years to support Afghan reconstruction and
development. McCain focused on drug eradication,
eliciting a follow-on commentary from Sergio Jaramillo,
Deputy Minister of Defense in Colombia, about the need for
an effective comprehensive strategy to stop the scourge of
illicit drug production before it gets out of control.


23. (SBU) McCain then shifted gears to counter some of
President Putin's commentary from earlier in the day. He
said he hoped Serbia could look forward to Euro-Atlantic
integration and urged Russia to back the efforts of
moderates in Serbia. Senator McCain countered Putin's
claim that power was too concentrated in the US by
stressing that power centers exist on every continent, and
that the US didn't win the Cold War on its own. McCain
hopes that Russia will not become more autocratic, as
recent events would indicate, and said the alliance will
remain an active, not reactive, force in global affairs.


24. (U) Australian Minister of Foreign Affairs Alexander
Downer highlighted his country's long-standing belief in
political freedom and democracy and discussed why the
Global Partnership with NATO makes sense. He praised
Japan for its efforts in Afghanistan, eliciting applause
from conference participants, and urged Turkish
integration into the EU based on its continuous efforts
within the NATO alliance, eliciting loud murmurs from
German parliamentarians and a stark rebuke from French
Parliamentarian and presidential candidate Pierre
Lellouche.

DIFFERING VIEWS ON THE WAY FORWARD
--------------


25. (SBU) The third panel discussion entitled "Peace in
the Greater Middle East; A New Approach?" began with an
impassioned speech by Mian Khurshid Mahmud Kasuri,
Pakistani Minister of Foreign Affairs, who passionately
defended his country against accusations of a lack of
commitment in the fight against terrorism. Kasuri listed
Pakistani measures taken to support Afghanistan and to
prevent the infiltration of Taliban fighters, noting that
1,000 border posts had been established, hundreds of
Taliban had been apprehended and turned over to
Afghanistan, and biometric identification and other
measures were being introduced, as well as socio-economic
programs added in the border region.


26. (U) Kasuri cited UN reports that the Taliban's main
recruitment sources were located in Afghanistan, and not
Pakistan, and said the causes for Afghanistan's
instability were the failures of the Afghan government and
the coalition forces. "It is clear" said Kasuri "that

MUNICH 00000081 006 OF 009


Pakistan has every reason to wish for a stable neighbor."
He recommended not just expanding military measures, but
reconstruction efforts as well, suggesting "some kind of a
Marshall Plan for Afghanistan," and offered a list of
specific suggestions for ISAF.


27. (U) Zalmai Rassul, National Security Adviser of
Afghanistan, thanked participants for bringing his country
into the community of democratic nations. He said
progress had been achieved in implementing the principles
of good governance, and asked for patience, noting that
for the first time in its history, his country had an
elected government. Rassul reported Afghanistan is
expanding initiatives to counter the activities of the
insurgents, especially economic and educational programs.
He specifically called for greater assistance to protect
schools and eradicate opium production. Rassul also
thanked Pakistan for its support but doubted Kasuri's
earlier statement that Taliban recruitment took place
mainly within Afghanistan's borders.


28. (U) Sir Menzies Campbell, Liberal Democrat leader in
the British House of Commons, criticized US and coalition
results in Iraq, saying that four years after the fall of
Saddam Hussein, Iraq was showing all the symptoms of a
failed state, with coalition forces now being a focus for
resentment rather than a force for containing internal
conflict. To avoid further escalation of conflict in the
region, Campbell said the immediate threat of civil wars
in Iraq, Lebanon and the Palestinian regions needs to be
averted. In the medium term, Iran needs to be brought
back into the international community of nations.
Finally, the long-term goal of peace in Iraq requires a
multilateral peace process with the UN in the lead. He
suggested four main elements: (1) establishment of an
international contact group for closer involvement by
Iraq's neighbors, including Iran; (2) a strategy on
disarmament, demobilization, and reintegration of the
militias in Iraq; (3) enhanced measures to train, equip,
and professionalize the Iraqi security forces; and, (4) a
time-limited program for phased withdrawal of all
coalition forces from Iraq.


29. (U) Javier Solana, High Representative of the European
Union, who was originally scheduled to speak first,
disregarded his prepared text, and merely stated he agreed
with Chancellor Merkel's remarks from earlier in the day,
and added that more support should be provided to the
Lebanese government. Following his comments, the
conference day concluded and participants departed for the
Munich Residenz where Dr. Solana was awarded a medal for
his efforts to find peace through dialog.

GATES AND STEINMEIER DISCUSS
TRANSATLATIC RELATIONSHIP IN 21ST CENTURY
--------------


30. (U) Secretary Gates opened the final day of the
conference with a speech that elicited applause and
sympathy from the audience. He turned aside Putin's
attacks of the day before, saying "as an old Cold Warrior,
one of yesterday's speeches almost filled me with
nostalgia for a less complex time. Almost. Many of you
have backgrounds in diplomacy or politics. I have, like
your second speaker yesterday, a starkly different
background - a career in the spy business. And, I guess,
old spies have a habit of blunt speaking. However, I have
been to re-education camp, spending four and half years as
a university president and dealing with faculty." He
later referred to Russia as an important partner in many
areas, including the conflicts with Iran and the DPRK, and
noted that he would take up the invitation from Putin and
Defense Minister Ivanov to visit Russia. Gates went on to
describe himself as a realist and to discuss his long-
standing interest in the security of Europe and opined
that totalitarianism was defeated as much by ideas as by
tanks. That same fight needs to be taken now to combat
violent fundamental extremists who combine "new

MUNICH 00000081 007 OF 009


technologies with old hatreds." The Alliance, therefore,
must continue the process begun following the end of the
Cold War to modernize itself and maximize its
opportunities through expansion and the Global Partnership
program.


31. (U) NATO is not a "paper membership" stressed Gates,
while chastising those who do not do all they can to
fulfill our collective commitment. With 26 democracies in
NATO, and two million people in uniform, Gates declared it
was a mark of shame if they could not raise sufficient
troops to get the job done in Afghanistan. It is far
better to incur the costs of challenges, stressed Gates,
than suffer the alternatives. When later asked about
Iraq, Gates replied that if we fail, all Alliance members
will feel the consequences. Only by working together can
we protect our shared values and interests, and our
cooperation must continue and deepen, wherever the fight
may take us. In conclusion, SecDef rallied the Allies
with a reference to General George Washington who stated
that "perseverance and spirit have done wonders in all
ages," to which Gates added his own watchword: unity.


32. (SBU) When questioned about U.S. credibility and
Guantanamo Bay, Gates responded that there is no question
that Guantanamo and the abuses in Iraq have negatively
impacted the U.S. reputation. Mistakes were made, and we
also need to explain our positions better. While America
may occasionally do something wrong, he said we remain a
force for good in the world.


33. (SBU) For Steinmeier, the transatlantic partners have
a common responsibility for the world's future, not only
to deal with current challenges, such as terrorism and
failing states. Without explicitly referring to the Iran
nuclear program, Steinmeier said that transatlantic
partners not only have to rely on military strength, but
also on credibility, intercultural competence and the
readiness for a dialogue. Steinmeier added that these
virtues make the transatlantic partners more convincing in
the promotion of interests and values. The changes of the
global world order (the rise of China and India, as well
as the challenges of climate change, energy, and the
environment) required a renewal of the transatlantic
partnership. Steinmeier was skeptical that NATO was the
right place to discuss issues such as energy and climate
change; a strengthened U.S. - EU partnership would
complement efforts at NATO.


34. (SBU) Steinmeier stated that Germany had proposed a
closer transatlantic economic partnership, and this will
be an important issue at the next U.S.-EU summit. He
added that TEP is not intended to weaken the WTO.
Steinmeier also suggested transatlantic cooperation on
energy security and climate protection. Europe and
America should cooperate on the development of new
technologies which protect the environment. Like his
party chairman Kurt Beck, FM Steinmeier urged the nuclear
powers to make a new push for further nuclear disarmament
in an effort to help prevent other states from pursuing
nuclear weapons.


35. (SBU) Rounding out the panel, Czech FM Karel
Schwarzenberg said Putin had provided the best argument
yet in favor of NATO enlargement and emphasized several
times during his speech that there is no alternative to
NATO. He also defended cooperation with the US on missile
defense and described it as a purely bilateral issue
between the US and his country. This could provoke some
reaction from other European partners, as the system has
ramifications beyond the two countries' borders.

LARIJANI STAYS ON IRANIAN MESSAGE
--------------


36. (SBU) Following an on-again off-again commitment to
provide his views on security in Middle East, Iranian
Secretary of the Supreme National Security Council Ali

SIPDIS

MUNICH 00000081 008 OF 009


Larijani stuck mainly to his well-worn script of Iranian
reasons for ignoring the EU3 3 offer and continuing on its
path as a nuclear power, including the history of US
abuses in his country and the region. He went on to
express surprise that the "defamatory campaign against the
Prophet Mohammed" is defended by western governments.


37. (U) Switching his focus to Iraq and Afghanistan,
Larijani described Iranian intentions and actions in those
countries as beneficial. According to him, those
provinces in Iraq which border Iran enjoy stability,
partially because there are no American troops present.
Despite the fact that Iran suffered greatly at the hands
of the then US-supported Saddam regime, Iran was opposed
to the war from the outset. In Afghanistan, Larijani
expressed dismay that Iranian efforts to fight drug
trafficking was met with American labeling Iran as part of
the evil axis.


38. (U) Larijani concluded that Iran's military programs
are strictly defensive in nature, that Teheran harbors no
ill-will toward any of its neighbors, and that
international double standards have caused instability and
misunderstanding in the region. Asserting Iran's nuclear
program is peaceful, Larijani claimed readiness to
continue efforts with the IAEA to answer any and all
questions placed to it. In response to questions,
Larijani defended the Iranian form of democracy by stating
that "democracy cannot be imposed from abroad" and that
indigenous values, in this case Islamic values, must be
included.

AN INTEGRATED APPROACH TO FIGHTING INTERNATIONAL TERRORISM
-------------- --------------


39. (U) The final panel of the conference on international
terrorism and asymmetric warfare was begun by Russian
Deputy Prime Minister and Minister of Defense Sergey
Ivanov, who, in a much more relaxed manner than his
President the day before, stated that a legal definition
of terrorism is badly needed and called on the conference
to hold such a panel on the topic in the future. He noted
that his government had made the war or terrorism a focus
of the 2006 G-8 St. Petersburg Summit. Ivanov went on to
discuss how the western war on terror is a struggle not
against a military threat, but against an asymmetric
technique. Armed military force will not be effective
alone but will require civil involvement. Ivanov said
there was only one clear solution - stabilization and
extradition of terrorists for prosecution. He repeated
Putin's call for UN Security Council legitimacy for any
military action and declined to discuss Chechnya Ivanov
used the question and answer session to defend Putin's
controversial remarks earlier in the conference, noting
that Russia's relations with the U.S. and Europe were
mature and the two sides could afford to be candid. He
stated that Russia would not accept multilateral decisions
that are imposed on it that it was not involved in
formulating.


40. (U) Senator Joseph Lieberman echoed said that the war
on terror was a struggle of ideas, and when ideas clash,
the results are often unpredictable. He noted that the
physical threat itself seemed to be asymmetrically moving
around us. Responding traditionally would be misguided
and self-defeating, Senator Lieberman said. Success would
require bold new ideas. The successful transformation of
NATO could be a guide for new approaches to global
security.


41. (SBU) Recognizing that the war in Iraq has created
much disagreement with and within America, Senator
Lieberman noted the high price that failure would entail.
Regardless of how the war in Iraq began, failure would
simply be unacceptable, with profound consequences for our
interests and those of America's allies and friends. He
concluded by noting that while America, like any country,
or any person, is not perfect, and certainly capable of

MUNICH 00000081 009 OF 009


making mistakes, we remained committed to our principles,
as embodied in our Declaration of Independence, and always
tried to return to them.


42. (SBU) Indian National Security Advisor M. K. Narayanan
opened his remarks by noting that he -- like both Russian
President Putin and U.S. Secretary of Defense Gates -- had
a background as an intelligence officer. Diverging from
his prepared remarks, Narayanan then gave his perspectives
on global terrorism in a noticeably calmer style than that
of his Pakistani counterpart from the day before.
Narayanan noted that the importance of international
cooperation in combating global terrorism is essential.
Terrorism is now more lethal and widespread with the
adoption of 'suicide' tactics, the availability of modern
instruments, and global communications. He continued that
the most significant tools the terrorist have are safe
havens from which to recruit and conduct operations. He
them proceeded to offer "evidence" of such a safe
sanctuary being available for the Taliban in Pakistan
(unnamed but clearly recognizable). He concluded by
discussing how money laundering and the underground
banking system facilitate terrorism.


43. (U) Chinese Deputy Minister of Foreign Affairs Zhang
Yesui diverged from the theme of the session and spoke
briefly of China's role in the international community,
noting more than 6,000 Chinese soldiers, police, and
technicians had participated in UN peacekeeping operations
in Congo, Liberia, Sudan, and Congo. He said China "can
and should" be a contributing partner in the global
community. He added that China was against the
proliferation of nuclear weapons and was a strong
supporter of the Six-Party talks currently ongoing in
Beijing.


44. (U) Deputy Secretary of the Treasury Robert Kimmitt
concluded the session and the conference noting that
finance ministries have become core security ministries.
He described the importance of using the tools in the
financial system to disrupt terrorist finance. Kimmitt
hailed UNSCR 1718 and 1737 for imposing financial
sanctions against North Korea and Iran and suggested that
financial measures could be effective against the Taliban
as well. He expressed his hope that terror finance would
be again taken up as a topic in the future.


45. (U) This report was coordinated by Embassy Berlin.
For additional information, please contact Thomas Kelsey
or Kenneth Kero.


46. (U) Previous reporting from Munich is available on our
SIPRNET website at www.state.sgov.gov/p/eur/munich/.
NELSON