Cablegate: Media Reaction: Iran, U.S., China, Terrorism, Russia,

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UNCLAS SECTION 01 OF 06 BERLIN 000040

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"

SIPDIS

E.0. 12958: N/A
TAGS: IR US CH YM RS XF
SUBJECT: MEDIA REACTION: IRAN, U.S., CHINA, TERRORISM, RUSSIA,
ISRAEL;BERLIN

1. Lead Stories Summary
2. (Iran) Death of Nuclear Scientist
3. (U.S.) Special Levy on Banks
4. (China) Test of Missile Defense System
5. (Terrorism) Yemen
6. (Russia) Dagestan Violence
7. (Middle East) Israel Builds New Wall

1. Lead Stories Summary

Print media focused on a variety of issues, ranging from the bomb
attack on an Iranian nuclear scientist (FAZ), to the debate over a
reform of the Hartz IV social security laws (Sueddeutsche), to a
lack
of doctors in eastern Germany (Die Welt), and the planned
postponement
of a Bundesliga soccer match due to the expected riots of May 1
(Tagesspiegel). Editorials focused on the 30th anniversary of the
foundation of the Greens Party and President Obama's plan to raise a

special tax on banks to finance the budget deficit. ZDF-TV's early

evening newscast heute opened with the retrial in connection with
the
collapse of an ice-skating hall that killed 14 people in January of

2006, while ARD-TV's early evening newscast Tagesschau opened with a

story on the problems of EADS in connection with the A 400 M. This

morning's broadcast media covered the earthquake in Haiti that
killed
several hundred people.

2. (Iran) Death of Nuclear Scientist

All German (1/13) papers reported on the death of an Iranian nuclear

scientist, highlighting that "Tehran blames Israel and the U.S." (FT

Deutschland).

Frankfurter Allgemeine (1/13) fronted: "Iran accuses the West of a
bomb attack in Tehran," noting that "the Iranian regime has
portrayed
the deadly bomb attack on an Iranian nuclear scientist in Tehran as
a
western conspiracy.... A State Department spokesman rejected
Tehran's
allegations as 'absurd,' saying that America has nothing to do with

the attack."

Sddeutsche (1/13) headlined: "Nuclear scientist killed in Tehran,"

adding that the "Iranian regime accuses America and Israel of
kidnapping and killing scientists.... Even before the official
investigations started, Iranian media accused foreign intelligence
services and the opposition People's Mujahidin party of being
responsible for the attack. The state-run TV newscast quoted
security
experts as saying that the technology used points at the Israeli
intelligence service Mossad." The paper also noted: "It is known
that, since 2005, the CIA has an operation called Brain Drain to
persuade Iran experts to leave the nuclear program."

FT Deutschland (1/13) reported: "The case raises clear doubts about

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the official statements on Mohammadi's death. The website of
opposition leader Musawi puts the attack in line with the murder of

Musawi's nephew after the severe protests last December. This
implies
that the murder of the physicist is supposed to be a warning to the

opposition... Mohammadi belongs to a group of university professors
who
supported that candidature of Musawi in the run-up to the
presidential
elections in June."

Berliner Zeitung (1/13) headlined: "Iranian Riddle," commenting that

"there have been contradictory reports on the professor's political

convictions.... For western diplomats, it has been immensely
difficult
for months to assess news coming out of Iran. The country is going

through one of its most serious crises since the Islamic Revolution
in
1979."

Die Welt (1/13) remarked: "The background of the attack is unclear.

However, it would not be the first time that an Iranian scientist
with
suspected ties to the secret nuclear program disappears or dies
under
mysterious circumstances."

3. (U.S.) Special Levy on Banks

All papers (1/13) carried reports on President Obama's plans to
impose
a special levy on banks to siphon off the profits they made during
the
financial crisis. Financial Times Deutschland carried a front page

report under the headline; "U.S. Banks to Pay the Bill," while
Sueddeutsche headlined: "U.S. Banks to Pay for the Financial
Crisis,"
and wrote that "the White House is examining a fee to get back the
costs for its support of the financial system. In addition, the
government hopes to counter the gambling mentality at Wall Street."

Frankfurter Allgemeine noted that "America's banks are to cover the

losses of the state-run rescue package." Die Welt reported under
the
headline: "U.S. Government is Having a Go at Financial Sector" that
"a
commission is seeking the ones who are to blame for the financial
crisis."

"Justified Anger," headlined Sueddeutsche Zeitung (1/13), and
judged:
"The ones who must be blamed should pay. This is the core of the
plans for a levy on banks which President Obama wants to
introduce...but
the much more important goal probably is to alleviate the anger of
the
public at Wall Street. It is no coincidence that the plans of this

special tax were leaked during a week in which the banks publish

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their
giant bonus payments for the crisis year 2009. There is no question

that this anger at Wall Street is justified. And it would only be
fair if the banks are punished, but the question is whether this
will
be possible without damaging the rest of the economy. Obama is
faced
with the alternative to approve mere symbolic measures or to impede

the supply of loans to the economy. Special levies, irrespective of

whether they are imposed on bonus payments or on risky investments,

are always substitute actions. At issue is the implementation of
the
new banking rules, especially stricter capital requirements, as
quickly as possible and without watering them down."

Under the headline: "Punitive Tax," Frankfurter Allgemeine (1/13)
had
this to say: "Considerations in Washington to impose a special tax
on
banks to cover the government's cost for the rescue of the financial

system, are evidence of populism. Shortly before the publication of

the results of the 1st quarter, in which the banks will announce
their
immense profits and which will even intensify the public anger at
bonus payments, President Obama is positioning himself on the good
side. But it is by no means clear whether the state investments in
the
banks will really turn into losses for the taxpayer. Much more
decisive is that a tax that will siphon off profits will by no means

contribute to protecting the financial system from new crisis....
But a
flat tax on profits resembles a punitive tax that runs counter to an

orderly tax system."

An editorial in Financial Times Deutschland (1/13) carried an
editorial under the headline: "Robin Hood or the Taxpayer," and
argued: "This levy is right even if this idea of a special tax is
based on election tactics. The financial crisis has demonstrated
the
damage banks can inflict on the economy and that they are not able
to
save the system - or even themselves. In the end, it will always be

the state which will pay. That is why it is justified to demand a
kind of fee for this function of the state. The fact that, of all
nations, the country with the globally biggest capital market makes

the first step in this respect is a great fortune. What a pity that

this idea is hardly implementable for Germany right now. Unlike the

United States and the UK, where a few banks again earn a lot of
money,
it would only be Deutsche Bank where the state could siphon off a
few
additional euros. All others, however, will take a long time to
turn
from debtors to creditors."

Handelsblatt (1/13) opined: "It would be the best for all sides if

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President Obama succeeded in creating a levy on banks which is well

conceived and high enough for this industrial sector to pay its debt

to the taxpayer in a credible way. If not, it will remain a focus
of
criticism for a long time to come. At the same time, the capability

of the banks to offer loans should not suffer. Only if Obama
succeeds
in this squaring of the circle will this tax make sense -- as a kind

of indulgence which will get the banks out of the purgatory."

Under the headline: "Bonus Payments as Fire Accelerant," die
tageszeitung (1/13) argued: "It corresponds to the feeling of
justice
among many people that bankers pay their share in the costs they
created. But there is yet another good argument to present them the

bill in connection with the bonus payments. These bonus payments
will
have the effect of a fire accelerant if a lot of money is again
being
burnt at the stock markets: a reward will lure bankers to accept
irresponsible risks, while, in case of a failure, there won't be any

sanctions."

4. (China) Test of Missile Defense System

Frankfurter Allgemeine (1/13) judged: "No one has the intention to
attack the People's Republic of China. That is why no one should be

afraid of China spending a lot of money on intercepting 'hostile
missiles.' If the Chinese [missile] test was really the success as
it
was sold, and if it is really an anti-missile defense system, then
the
result primarily shows that China wants "to be one of us." It is
nonsensical to link the Chinese missile test to the shipment of U.S.

anti-defense missiles to Taiwan. It is obvious that China is
irritated at this U.S. step. But even the most zealous conspiracy
theorist cannot turn this into a threat. There would only be one
exception, and that would be if: Beijing admitted that it has
aggressive intentions towards Taiwan. And this would not go along
with
the image of China as a peace-loving developing country which the
country so diligently spreads about itself."

Regional daily Landeszeitung of Lneburg (1/13) judged: "China is
spending a lot of energy on presenting itself as a 'responsible
major
power,' which -- unlike the emerging nations of the 20th century,
Germany and Japan-- is committed to creating peace. But maybe China

is only the shrewd emerging country which is camouflaging its
aggressive intentions behind cloudy peace rhetoric. Beijing's
confession of setting up a missile defense system is undermining its

credibility. Beijing vows that this system is 'defensive,' but this

is only half the truth because a strong shield can create a feeling
of
unassailability, which, in turn, could encourage it to be more
aggressive, for instance, about reconquering secessionist Taiwan.

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For
Eastern Asia, China's missile defense system is explosive news."

5. (Terrorism) Yemen

In an editorial under the headline: "For a Pittance Money to Al-
Qaida," Sueddeutsche Zeitung (1/13) had this to say: "Western
government knew for a long time how well suited the impoverished and

forgotten state in the Gulf of Aden is as a breeding ground for
radicals and rebels. The methods of Yemenite President Ali Abdullah

Salih, who has been the strongman of the country for more than 30
years now, have helped even less over the past few weeks to defuse
the
dangerous mixture of Yemenite conflicts. That is why it is very
easy
to find a few hopeless people for a pittance. But it would be
possible to regain the confidence of the ragged rank and file for a

life beyond Jihad. Much more dangerous are the internationally well

linked terrorism godfathers such as the U.S. born Anwar al-Awliki
who
lives in Yemen. U.S. military psychiatrist Nidal Hasan exchanged
mails with him before he shot 13 people in Fort Hood. Air strikes
against al-Qaida camps in Yemen, which killed civilians only
recently,
will drive even more supporters into the radicals' hands. What the

country needs is development and a better government. The
Afghanistan
conference in London should make this clear."

6. (Russia) Dagestan Violence

Berliner Zeitung (1/13) analyzed: "Yesterday's attack on the gas
pipeline makes clear that violence is escalating in Dagestan. It is

only a week ago that Russia's Caucasus Republic avoided a
catastrophe...
Since then, the spiral of violence has been accelerating... It is
clear
that the police have become the target of Islamic extremists,
regardless of whether they are ordinary police officers or the
interior minister, who was shot during a wedding in August. It is
also clear that this is a problem that all of Russia has to deal
with.
Dagestan is Russia's largest republic in the Caucasus. It is a
micro
Caucasus with a dozen of different ethnic groups. Peace is
maintained
by a sophisticated quota system in the appointment of offices.
Ethnic
considerations or clan considerations can hardly be distinguished.
At
its southern fringe, Russia's state structure is failing. Following

the 2004 attacks, Putin tried to get the region under control by
stopping the elections of governors. Since then, they are appointed

by the President.... However, Dagestan shows that Putin's famous
'power
vertical' of authoritarian governance is failing in the Caucasus."

7. (Middle East) Israel Builds New Wall

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Sueddeutsche (1/13) deals with Israel's intention to build a new
wall
along the Israeli-Egyptian border and judged: "The existence of the

Jewish state is by no means jeopardized only in military terms, but

also as far as demography is concerned. Prime Minister Netanyahu
explicitly said the new fence along the border with Egypt, which has

been considered a 'peace border' since 1979, will be used to keep
out
illegal immigrants 'to preserve the Jewish and democratic character
of
the state of Israel.' In this case it aims at African immigrants.

But Israel wants to distance itself much more from the Palestinians
on
the West Bank and in the Gaza Strip. That is why this barrier,
which
cuts large blocks of Israeli settlement out of the West Bank, is, in

addition to the defense against terror, a monument of demographic
insulation. The Palestinians with their high birth rate will make
the
Jews a minority in their own state. The dilemma is clear: Israel is

still the only country in the Middle East where western values have

made their mark on. But the openness of democratic societies is
colliding with the need for safety and safeguarding the Jewish
identity. In case of doubt, Israel will also vote in favor of
security, with all its consequences. Those who see themselves
fighting for their identity will also see the use of many means to
be
justified, including such means that are considered questionable
elsewhere. That is why Israel is not only sealing off its borders
but
also continues to develop a laager mentality."

MURPHY

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