MEDIA REACTION: U.S.-ISRAEL U.S.-CHINA, IRAN, RUSSIA,

UNCLAS BERLIN 000905


STATE FOR INR/R/MR, EUR/PAPD, EUR/PPA, EUR/CE, INR/EUC, INR/P,
SECDEF FOR USDP/ISA/DSAA, DIA FOR DC-4A

VIENNA FOR CSBM, CSCE, PAA

"PERISHABLE INFORMATION -- DO NOT SERVICE"

E.0. 12958: N/A
TAGS: OPRC KMDR KPAO GM US CU MD SO IT RS UP GG KG
SUBJECT: MEDIA REACTION: U.S.-ISRAEL U.S.-CHINA, IRAN, RUSSIA,
MOLDOVA


1. Lead Stories Summary

2. (U.S.-Israel) Netanyahu-Mitchell Meeting

3. (U.S.-China) Washington Summit

4. (Iran) Western Reaction

5. (Russia) Influence on Central Asian Neighbors

6. (Moldova) Re-Election




1. Lead Stories Summary

One main item in today's print media centers is on the second
quarter profits of Deutsche Bank. Other items are the meeting of
the fact-finding committee that is investigating the Hypo Real
Estate scandal and the question of who is going to pay for swine flu
vaccinations. Editorials focused on Deutsche Bank's profits.
ZDF-TV's early evening newscast heute and ARD-TV's early evening
newscast Tagesschau opened with reports on the bailout program for
the Hypo Real Estate bank.


2. (U.S.-Israel) Netanyahu-Mitchell Meeting

Under the headline "No Agreement Between Netanyahu and Mitchell,"
Frankfurter Allgemeine wrote: "U.S. Mideast envoy George Mitchell
and Israel's Prime Minister Netanyahu did not reach a compromise in
their talks on Tuesday on the demand of the international community
for a complete stop of construction for Israeli settlements in the
occupied territories. For the Palestinian government this is a
precondition for a resumption of Palestinian peace talks with
Israel."

"Settlement Question Unresolved," is the headline in Sueddeutsche
Zeitung which wrote: "despite intense talks with officials of the
Israeli government, U.S. special envoy for the Mideast, George
Mitchell, did not succeed in achieving a breakthrough in the
controversy over the expansion of Jewish settlements on the West
Bank. Mitchell had met Palestinian President Abbas the night
before. Members of Abbas's office said later that Mitchell conceded
to Abbas that he had not yet achieved an agreement in his talks with
officials of the Israeli government. According to these reports,
Mitchell will meet Netanyahu again in August. Israeli media
reported on Tuesday that Netanyahu is considering a three-month
construction stop in order to signal to the U.S. government his
willingness for compromise."

Handelsblatt reported under the headline: "Netanyahu Does Not Make
Concessions to Washington in Settlement Question," and wrote:
"Israel's settlement policy continues to obstruct progress in the
Middle East peace process. It is true that U.S. special envoy
George Mitchell called a meeting with Israel's Premier Netanyahu to
be 'very productive,' but the evening before, Mitchell stressed in a
meeting with Palestinian President Abbas that there is still a gap
between the United States and Israel concerning their view on the
Middle East conflict. Israel's government has thus far not even
demonstrated a willingness to stop the construction of Jewish
settlements on Palestinian territory. Because of Israel's
inflexible position, the peace talks with the Palestinians have been
interrupted for four months now."


3. (U.S.-China) Washington Summit

Sueddeutsche reported on its front page under the headline: "Obama:
Beijing is our Most Important Partner," and wrote that: "More than
ever, the United States and China wants to seek cooperation. At the
conclusion of their historic summit in Washington, top politicians
from both sides said they wanted to stabilize the global economy
together, stop looming climate change and stop the proliferation of
nuclear weapons. In a keynote address, President Obama said that no
other bilateral relationship in the world is as important as
cooperation between Washington and Beijing.... Behind closed doors,
Chinese officials reiterated their proposal of setting up a new
global monetary system. The U.S. dollar as key currency should be
replaced by a new artificial currency that is made up of different
currencies. U.S. officials, however, reacted with restraint to the
Chinese proposal. Treasury Secretary Geithner only said that his
government would stand up for a greater say of China in the IMF.
This would primarily weaken Europe's influence."

In an editorial Sueddeutsche opined: "We have hardly seen America
acting in such a meek way. It is true, the United States did not
kow-tow to the Chinese, but the Obama government ensnared the
officials from China with surprisingly deep bows. The times are
over when U.S. politicians gave the politicians from the Middle
Kingdom lectures on the miserable state of human rights. The U.S.
side also did not stick to the ritual to criticize China because of
its monetary policy. Instead: Washington showed modesty, for
Washington comprehends what it owes to China. Beijing has U.S.
treasuries worth 800 billion dollars, and America is up to its ears
in debt mostly financed by China. Secretary Clinton lauded
Sino-U.S. dialogue as a new beginning and Barack Obama said both
nations would make their mark on the 21st century. These were great
words but it is totally open which balance of power both sides will
find. But Americans and Chinese are self confident enough to
squander any thoughts on third parties. At this summit, no one
talked about Europe, the old world."

Frankfurter Allgemeine noted: "America and China are talking to each
other, and in this context, we often hear the term 'partner.' But
nobody should deceive himself, China is primarily a competitor.
This becomes very obvious when talking about natural resources. But
even politically China is pursuing a strategy that aims at dominance
and control. For this reason alone, it would be wrong if the
Americans declared its power policy relations with China a model of
the future. Not everyone [of China's] neighbors is enthused about
the prospect that China is becoming increasingly powerful. This
includes U.S. allies. Even though major powers are willing to
sacrifice the interests of their smaller partners in case of an
emergency, Washington should keep in mind that it could need each
friend it could get. And China should not only speak of
responsibility, but also seize it, for instance, in North Korea, for
instance, in the case of Iran."


4. (Iran) Western Reaction

Frankfurter Allgemeine judged on its front page under the headline:
"The Dilemma of the West," that "it is true that the street protests
in Iran have ebbed but the power struggle within the Islamic system
is fiercer than any time before. This development about the Iranian
presidential election must be seen against the background of
President Obama's extended hand. The fear of a kind of Gorbachev,
who is endangering the system by making overtures to the West, is
one important reason for preventing Moussavi's election victory.
The West has a dilemma now. If it enters into talks with the
Ahmadinejad government during the repression, it will stab the
opposition in the back. In addition, it would lose its credibility
as advocate of democracy and human rights. But if it clearly
opposes the rulers in Tehran, it will lose the rest of the influence
on Tehran it still has. And then the danger that Iran would soon
have the ability to build the bomb can hardly be avoided. Iran is
supposed to present a solution to the nuclear conflict before the
G-20 meeting in September, as requested by the summit meeting in
L'Aquila. What do we expect from Tehran now? That it gives up the
enrichment of uranium, as a response of the UN Security Council
demands? Tehran will not do this. Does Obama's extended hand mean
that he is willing to ignore the UN decision? The West would be
better advised to show restraint for the time being but continue to
insist on the adherence to principles, on the release of political
prisoners, on freedom of opinion and freedom of assembly and, at the
same time, on maintaining its offer for talks. We cannot expect too
much from Tehran for the time being."



5. (Russia) Influence on Central Asian Neighbors

Sueddeutsche Zeitung editorialized under the headline: "Russia's
Satellites Are Leaving the Orbit," and judged: "Tajikistan's leader
Rachmon has banned Russian as the second official language. This is
a small nationalistic gesture to his people, but it is also a symbol
of the growing self-confidence of the former Soviet republic. It
may be possible that Rachmon has to rescind this step but then he
will demand a price for it. This is an experience Moscow has had
more frequently over the past few months. Russia's allies are
standing up, forcing the vast Russian empire to make concessions
that cost a lot of money and also part of its political power. And
the economic crisis is now even intensifying the centrifugal forces
in the so-called Community of Independent States (CIS). More than
ever before Moscow must fight for influence among its historical
partners and enter into difficult talks with each country.... It
was Premier Putin who criticized the U.S. dominance in the world
over the years and advocated instead a multipolar world. But at the
latest since Barack Obama entered office, Russia has come closer to
this goal. But at the same time, the classical Russian friends have
adopted Putin's appeal, for it is their only chance to loosen the
shackles of this crisis. And China and Europe are playing a central
role since they have the financial instruments these states need to
eliminate their economic dependence on Russia."


6. (Moldova) Re-Election

Tagesspiegel headlined: "Second Try in Moldova with Elections," and
reported: "Today the approximately 32.5 million Moldovans are
electing a new parliament in the poorest country in Europe. But it
is questionable whether it will clearly resolve the power struggle
between the governing communists or the opposition. But these
elections are of great significance. They will decide who will
succeed outgoing leader Vladimir Voronin and whether the country
will orient itself toward Europe or Russia in the future.... The
opposition stands for a rapprochement with the EU with the goal of a
future membership, while the communists have pursued an increasingly
pro-Russian course over the past months."

"Elections on Future Course of Europe's Poorhouse," is the headline
in Sueddeutsche Zeitung, which reported: "This Wednesday, Moldova is
making a second attempt to elect a parliament that is capable of
acting. The latest opinion polls see the communists in the lead with
30 percent but the four opposition parties, which are all pushing
for EU membership of Moldova, could reach a lead of five percent.
Moldovan commentators are writing that the election will determine
Moldova's future course: the Moldovans have to decide between a
return to under Moscow's umbrella or a pro-European course.
According to an opinion poll by the Institute for Public Policy in
Chisinau, almost two-thirds advocate an EU accession, but two-thirds
also describe Russia as a strategic partner."

Frankfurter Allgemeine carried a report under the headline:
"Boundless Thirst for Power," and noted: "Moldova's communists are
afraid of losing their power in the election on Wednesday. With a
campaign of fear they are trying to counter this development. With
all their power they are bracing themselves against the looming loss
of power. Even though the party of acting President Voronin is
likely to become the strongest force in the election this Wednesday,
its sole rule over Moldova is in jeopardy. It will have great
difficulty winning the necessary three-fifths majority of the
election of its state president."

BRADTKE