In this issue:

Hans Blix To Head New WMD Commission

Berlusconi Explains Why Europe Needs a 'New Deal'

German Exports to China Increased by 20% in 2002

Britain's Foreign Secretary Pays Surprise Visit to Baghdad

Britain's Foreign Secretary in Tehran

Britain's Foreign Secretary Rules Out Intervention in Iran

FAZ: Leo Strauss Hijacks Imperial Ancient Athens

Palermo Meeting To Discuss Mediterranean Investment Facility

From Volume 2, Issue Number 27 of Electronic Intelligence Weekly, Published July 8, 2003

Western European News Digest

Hans Blix To Head New WMD Commission

Swedish Foreign Minister Anna Lindh announced July 7 the creation of a new commission, to be financed by Sweden, with the intent to provide new ways of fostering international cooperation for the disarming of weapons of mass destruction and to stem proliferation. The commission is expected to be established in the fall and will issue its first recommendations some time in 2005. A Foreign Ministry spokeswoman said, "The more detailed shaping of the commission will be up to Dr. Hans Blix, who just completed his term as chairman of the UN's weapons inspection commission in Iraq, UNMOVIC." Blix has been an outspoken critic of the U.S. move to unilateral war against Iraq, and Blix has challenged Washington to explain why the U.S. has failed to find WMD.

Berlusconi Explains Why Europe Needs a 'New Deal'

Following Italy's assuming the six-month rotating Presidency of the European Union on July 1, Italian Premier Silvio Berlusconi explained why a "New Deal" is necessary for Europe in his July 2 statements in the European Parliamentary debate. "I agree with you, that you can see a Keynesian or Colbertian atmosphere in the request for a European intervention through the EIB [European Investment Bank] and the accumulation of private capital to build large Trans-European infrastructure, already planned ten years ago by [then-European Commission] President Delors—but, you see, we are facing a fact that nobody can contradict. What happened in the world after 9/11? There was the Afghanistan war, the Iraq war, but more importantly, the world stock markets collapsed. This has caused a reduction in all the financial wealth invested in stocks, and has caused a crucial collapse of their profits.

"This has caused a reduction in private demand on the market for consumer goods and for durable goods, and therefore, when private demand goes down, there is no other way than to stimulate public demand to support the economy. Public demand cannot come from single [European] states, because single states no longer have the ability to change currency rates, to have a development policy, due to the simple fact that they must stay within the Maastricht criteria. Therefore, it is Europe alone that must, finally, develop its own capacity for economic policy. The Italian proposal is that Europe—through one of its institutions, the EIB—shall collect funds from private capitals that are in the market and which one could get at low interest rates, to try to give impetus to demand, through transnational projects in infrastructure, and also through necessary new investments in military technologies, and through investments in research and in education. Solely because of this, facing a changed economic reality, we must stimulate investments from the states and, in this case, from the European Union."

German Exports to China Increased by 20% in 2002

In a special release on July 2, the German Federal Statistical Office highlighted the rapid expansion of trade relations between Germany and countries in East Asia. German exports to East Asia amounted to 51.6 billion euro in 2002, compared to German exports to France (69.8 billion Euro), Eastern and Central Europe (76.5 billion euro), and the U.S. (66.6 billion euro).

East Asia's share in German exports thus rose 8.0% and is expected to increase in coming years. China has now surpassed Japan as the leading German trade partner in East Asia, both in terms of exports as well as imports.

German exports to China increased by 19.6% last year, those to South Korea by 20.8%. The only other region in the world where German exports are also rising strongly year by year, is Eastern and Central Europe, up 7.6%, and Russia, which rose 10.6%.

In contrast, German exports to other Euro-zone countries stagnated 0.3% during 2002 and exports to the U.S. fell 1.8%, and to Japan fell 7.1%.

Britain's Foreign Secretary Pays Surprise Visit to Baghdad

Jack Straw vowed that attackers against the U.S.-U.K. would be "dealt with" and that authority would be handed over to the Iraqi people quickly. Straw met with U.S. administrator Paul Bremer and Maj. Gen. Peter Wall, commander of British troops in Basra. Bremer is reported to have requested more British troops be deployed.

Straw told BBC that "the terrorists, the remnants of the Baathists in Fallujah, on the ground, are making a terrible mistake if they think that we're going to run away from this." He added, "The quicker we can get established Iraqi institutions, the better," and promised Iraqis would be taking over responsibility. His remarks dovetailed with statements made by President Bush the same day in the United States.

Meanwhile, back in London, Blair's aide Alastair Campbell admitted in a letter published in the Guardian, that he had doctored up the intelligence reports on Iraq. The scandal is rocking the Blair government (see INDEPTH).

Britain's Foreign Secretary in Tehran

Jack Straw played the soft cop at a joint press conference in Tehran with his counterpart Kamal Kharrazi, June 30. Straw went to Tehran reportedly to pressure Iran to sign a protocol to the Non-Proliferation Treaty. The Iranian position, restated by Foreign Ministry spokesman Asefi, is that, as an NPT signatory, Iran has the right to nuclear technology transfer, which has been denied it (except from Russia). Asefi said, "If we are going to sign new commitments, we need to know the implications."

Straw therefore was asked at the press conference, if sanctions would be lifted. He said he could not say when, but that it would generate more trust to sign.

When asked why there is no objection to Israel's nuclear force, he said that Iran, a signatory of NPT, had had some "problems," which had to be solved. If the nuclear program were peaceful, okay. Then, he said Israel has not signed the NPT, and that when all other countries have recognized Israel, then one can put pressure on Israel to sign.

Regarding the WMD in Iraq, which have not materialized, Straw said they had had "proof" of a nuclear weapons program, and that, on that basis, the UN members had signed Resolution 1441, designating Iraq as a country which constituted a threat to security. He also cited "concern" as referenced in an IAEA report on Iraq!

On Blair's recent comments supporting demonstrators in Iran, considered an interference in internal affairs (and for which the Iranians called in the British ambassador), Straw said it was no such thing; he said Blair merely stated the U.K.'s position to "support the right of free and peaceful assembly."

On Iraq, he said Iran had been playing a positive role, and he hoped it would play a "more constructive" role in reconstruction.

In talks with Iran's National Security head Rowhani, Straw discussed the Afghan situation, which, Iran says, has destabilized the region, and paved the way for production of 20 times the amount of drugs. Rowhani said IAEA head ElBaradei would be invited to Iran soon, to solve some "technical problems" (he is expected in Tehran on July 9).

Britain's Foreign Secretary Rules Out Intervention in Iran

In response to a question posed by the BBC, whether there were any circumstance in which Britain would agree to a military attack on Iran, Jack Straw replied: "I can conceive of no such circumstances."

Straw stressed throughout, according to the Farsi reports, the importance of solving differences through discussion.

FAZ: Leo Strauss Hijacks Imperial Ancient Athens

The late Leo Strauss and his neo-conservative followers were featured in a half-page article in the June 29 Frankfurter Allgemeine Zeitung, where Strauss was dubbed "the Oracle of Chicago." Leo Strauss did exert influence, but not in a direct way, rather, like the ancient Oracle of Delphi, said the commentary.

FAZ added that the Straussians of today borrow from ancient Greece also in another sense: Actually, they do not care much about any philosophy, instead ,their only philosophy is that which drove the ancient imperial Athenians to define their strategic objectives on the basis of military superiority and raw power—as described by Thucydides in his famous history of the Peloponnesian War.

Palermo Meeting To Discuss Mediterranean Investment Facility

On July 7, the third Euro-Mediterranean conference pushed for an investment facility for the Mediterranean as a priority. "We will try to achieve an increase of investments by upgrading the financial facility of the European Investment Bank for private investments and infrastructure in the Mediterranean Countries (Femip)," Italian Vice Minister Adolfo Urso said in an article for the weekly Il Mondo.

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