August 23, 2004

World Media Watch

by Gloria R. Lalumia

BUZZFLASH NOTE: WMW provides BuzzFlash readers foreign views and perspectives that are not usually available from the media here in the U.S. The presentation of these articles from these international publications is not an endorsement of their viewpoints.

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WORLD MEDIA WATCH FOR AUGUST 23, 2004

1//The Daily Star, Lebanon--IRANIAN ATOMIC POWER PLANT FACES MORE DELAYS (Iran on Sunday announced a further substantial delay in the long overdue project to complete its first nuclear power plant, part of a programme which Washington says could be used to make atomic arms. But the delay to the Bushehr reactor in southwestern Iran, now due to come onstream in October 2006, will do little to allay international concerns about Iran's atomic ambitions which focus more on its uranium enrichment efforts... While fuel for the first Bushehr reactor will be provided by Russia under a 10-year supply agreement, it is Iran's plans to produce its own nuclear fuel though sophisticated uranium enrichment plants that has proven most controversial.)

2//The Sydney Morning Herald, Australia--PM WAS TOLD WAR WOULD SPUR TERRORISM (The Federal Government was warned repeatedly by intelligence analysts before the Iraq war that the conflict would harm the war on terrorism by fanning Islamic extremism and spurring terrorist recruiting. An investigation by the Herald, which has included interviews with several serving and retired intelligence figures, has uncovered that John Howard and his senior colleagues were briefed on the dangers, verbally and in written reports. Yet the Prime Minister told Australians on the eve of the conflict that the war would lessen the terrorist threat, contradicting his intelligence advice. The revelation raises serious questions about the inquiry into the intelligence services commissioned by the Government and conducted by Philip Flood. The inquiry never mentioned the warnings about an increased terrorist threat.)

3//Inter Press Service News Agency, Italy--IRAQ: DEPRESSION SPREADS TO THE MARKET (Seventeen months after the fall of Saddam Hussein, many Iraqi traders say the economy is stagnating...Traders and merchants blame primarily the worsening security situation for the economic slowdown...Another major factor for the booming economy earlier was that the U.S. forces and administration bought a lot of goods locally. The transitional government of appointed prime minister Iyad Allawi has not produced that kind of shopping spree. The government has said instead that it will reinforce taxes and customs duties on many goods. That would make them even less affordable.)

4//The Daily Times, Pakistan--EU'S INCOMING CHIEF WANTS TO HELP US ("Some people in Europe may think that it is good that things are going badly for the US" in Iraq, European Commission President-designate Jose Manuel Barroso said in an interview with five European newspapers published on Friday. "I really think that is an irrational and a bad policy." As Portugal's prime minister, Barroso supported the US-led invasion, hosting a pre-war summit with the leaders of the United States, Britain and Spain in the Azores Islands. The country has about 120 police officers stationed near Nasiriyah in southern Iraq.)

5//The Daily Yomiuri, Japan--DEBATE OVER ARMS EXPORTS INTENSIFYING (The debate over the country's self-imposed rules on arms exports is expected to intensify because of the need to develop technology jointly with the United States to build a missile defense system to counter the threat presented by North Korea's ballistic missiles...When the research phase of the missile defense system advances to the production stage, Japan will have to export components to the United States. The existing rules prohibit such shipments...Government officials and members of the ruling parties want the missile defense system exempted from the rules because, they claim, the system comprises defensive equipment, not offensive weapons that the rules prohibit from being exported.)

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1//The Daily Star, Lebanon Monday, August 23, 2004
http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=7604

IRANIAN ATOMIC POWER PLANT FACES MORE DELAYS

Compiled by Daily Star staff

Iran on Sunday announced a further substantial delay in the long overdue project to complete its first nuclear power plant, part of a programme which Washington says could be used to make atomic arms.

But the delay to the Bushehr reactor in southwestern Iran, now due to come onstream in October 2006, will do little to allay international concerns about Iran's atomic ambitions which focus more on its uranium enrichment efforts.

Bushehr, which is being built with Russian help, has seen its start date pushed back steadily in recent years from an earlier target of 2003. Russian officials had recently said it would start up in 2005.

"One of the reasons that the project has faced delay is our precise attention to international standards" on safety and the environment, Asadollah Sabouri, deputy head of Iran's Atomic Energy Organisation, told a news conference.

Another factor holding up the 1,000 MW plant is the failure to agree on a contract to return spent fuel to Russia. The agreement is designed to ease fears that Iran could reprocess the spent fuel and turn it into bomb-grade material.

Sabouri said Iran and Russia had yet to agree on the cost and procedures for returning the spent fuel, but said both sides were committed to reaching a deal.

Iran rejects US accusations that it is secretly developing nuclear weapons. It says that despite its large oil and gas reserves it needs to generate 7,000 MW from nuclear power by 2021 to meet rising electricity demand.

Sabouri said Russia had agreed to build at least one more reactor at Bushehr and that two European countries had expressed interest in building some other plants.

"My message to the Europeans is ... we are ready and we have to move towards implementation contracts," he said. He declined to name the countries.

While fuel for the first Bushehr reactor will be provided by Russia under a 10-year supply agreement, it is Iran's plans to produce its own nuclear fuel though sophisticated uranium enrichment plants that has proven most controversial.

(MORE)

2//Inter Press Service News Agency, Italy August 20, 2004
http://ipsnews.net/interna.asp?idnews=25163

IRAQ: DEPRESSION SPREADS TO THE MARKET
Peyman Pejman

BAGHDAD, Aug 20 (IPS) - Seventeen months after the fall of Saddam Hussein, many Iraqi traders say the economy is stagnating.

Last year in August the streets of Baghdad were bustling with commercial activity. Almost at every corner sat a man exchanging money or selling something, usually an imported commodity.

Shops were stacked ceiling high. Many were so full that owners showcased their goods on the pavement.

Those days seem gone. Inventories are low and shop owners spend more time chatting with friends than pitching a sale.

Traders and merchants blame primarily the worsening security situation for the economic slowdown.

"The security is not good. People see the explosions and killings, and they are afraid to go out," says Nahez Abdel Wadood, manager of an airconditioners shop. "People used to stay out till 10 pm. Now no one goes out after 7 pm."

Several times in the past few months rockets and mortars aimed at U.S. convoys have landed in commercial areas of Baghdad, killing or injuring civilians.

Baghdad traders see other reasons too for the downturn. "Right after the war, every company that was dealing with Iraq cut its prices because there were no customs duties, no taxes, no borders. Things were easy. Something that used to cost 500 dollars was slashed to 350 dollars," says trader Joma Khafaji.

"And a lot of Iraqis were also curious to see what is on the market because they had been deprived of these things for years," he added.

The dollar exchange rate had improved before the war and after the invasion of the U.S.-led forces, he says. That meant many Iraqis had more hard currency to spend.

Another major factor for the booming economy earlier was that the U.S. forces and administration bought a lot of goods locally. The transitional government of appointed prime minister Iyad Allawi has not produced that kind of shopping spree.

The government has said instead that it will reinforce taxes and customs duties on many goods. That would make them even less affordable.

The government already taxes car imports. And imports have dwindled to near zero as a result, dealers say.

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3//The Sydney Morning Herald, Australia August 23, 2004
http://www.smh.com.au/articles/2004/08/22/1093113058224.html?oneclick=true

PM WAS TOLD WAR WOULD SPUR TERRORISM
By Tom Allard, Foreign Affairs Reporter

The Federal Government was warned repeatedly by intelligence analysts before the Iraq war that the conflict would harm the war on terrorism by fanning Islamic extremism and spurring terrorist recruiting.

An investigation by the Herald, which has included interviews with several serving and retired intelligence figures, has uncovered that John Howard and his senior colleagues were briefed on the dangers, verbally and in written reports.

Yet the Prime Minister told Australians on the eve of the conflict that the war would lessen the terrorist threat, contradicting his intelligence advice.

The revelation raises serious questions about the inquiry into the intelligence services commissioned by the Government and conducted by Philip Flood. The inquiry never mentioned the warnings about an increased terrorist threat.

"They were very, very aware of our views," one former intelligence analyst said. "We believed it would inflame extremism and increase terrorist recruitment."

The source said these views were relayed in written reports and in verbal briefings to Mr Howard and his ministers in the months and weeks leading up to the conflict.

The sources said senior Government members were constantly being briefed on al-Qaeda and terrorism, including the impact of the Iraq war on the jihad being carried out by al-Qaeda. Another intelligence analyst pointed to additional reporting on how the war would be viewed on the "Arab street" and elsewhere.

"We thought the Arab governments, the Gulf states, would keep a lid on demonstrations in the lead-up to the war. But we were sure, in the longer term, there would be a lot of anger towards the West," the analyst said. "We would see there was a risk here that this is going to provoke more support for terrorism and violent responses."

The assessments proved prescient. The war has led to a surge in anti-Western sentiment and has become a powerful recruitment tool for terrorists, as the Government now acknowledges.

(MORE)

4//The Daily Times, Pakistan Monday, August 23, 2004
http://www.dailytimes.com.pk/default.asp?page=story_22-8-2004_pg4_1

EU'S INCOMING CHIEF WANTS TO HELP US
BRUSSELS: European governments should put divisions over Iraq behind them and join in helping the United States restore order there, the European Union's incoming chief executive has said in an interview.

"Some people in Europe may think that it is good that things are going badly for the US" in Iraq, European Commission President-designate Jose Manuel Barroso said in an interview with five European newspapers published on Friday. "I really think that is an irrational and a bad policy."

As Portugal's prime minister, Barroso supported the US-led invasion, hosting a pre-war summit with the leaders of the United States, Britain and Spain in the Azores Islands. The country has about 120 police officers stationed near Nasiriyah in southern Iraq.

France and Germany opposed the war and have refused to send troops to help the US-led coalition. Spain recently pulled its forces out of Iraq following the election of a new government.

Divisions over Iraq cast a shadow over efforts last June to choose the next commission president, who runs the EU's 24,000-strong civil service.

In the interview, Barroso said Europeans should "leave behind our disagreements on Iraq" and "give a positive, strong contribution to the Iraqi problem."

He said he wanted to see a "good, close, cooperative" relationship with the United States.

"It is in our interest to work with them, but it is also in the interest of the world," he said. But, he added, "I don't like to see the EU in a secondary position. Partnership needs respect and that works both ways."

Aside from Iraq, trans-Atlantic ties have been strained over issues ranging from US steel tariffs to European aircraft subsidies to trade in genetically modified crops.
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5//The Daily Yomiuri, Japan August 23, 2004
http://www.yomiuri.co.jp/newse/20040823wo02.htm

DEBATE OVER ARMS EXPORTS INTENSIFYING

Michio Hayashi and Kazuteru Yoshiyama / Yomiuri Shimbun Staff Writers

The debate over the country's self-imposed rules on arms exports is expected to intensify because of the need to develop technology jointly with the United States to build a missile defense system to counter the threat presented by North Korea's ballistic missiles.

(SNIP)

During the July meeting, members of the panel called for a review of the government's three rules on arms exports and urged that a new system be worked out.

The panel's unanimous call for the review caught the Defense Agency by surprise. "There was no opposition at all," a senior agency official said.

In 1967, the Sato Cabinet adopted three principles banning arms exports to the Soviet Union and other communist countries, to countries under U.N. arms embargoes and those involved or likely to be involved in international conflicts.

In 1976, the Miki Cabinet announced that Japan would refrain from exporting arms to all other countries.

However, the Cabinet of Prime Minister Yasuhiro Nakasone agreed in 1983 as an exception to offer weapons-related technology to the United States. Besides this, Japan has maintained a ban on exports of arms and related technology.

However, the total ban on arms exports is causing many problems, and has led to further calls for a review of the rules.

For example, the rules place constraints on the technological development of a sea-based missile defense system that is currently being carried out by Japan and the United States. The system is designed to counter North Korea's ballistic missiles.

When the research phase of the missile defense system advances to the production stage, Japan will have to export components to the United States. The existing rules prohibit such shipments. The missile defense system also could be deployed in Europe and elsewhere in the future.

Government officials and members of the ruling parties want the missile defense system exempted from the rules because, they claim, the system comprises defensive equipment, not offensive weapons that the rules prohibit from being exported.

Also behind the intensifying debate on the review of the arms export rules is the surge in the prices of domestically made military equipment.

Because of the rules, the domestic defense industry is permitted to sell their products only to the Defense Agency. In other words, market mechanisms do not apply.

For example, the Ground Self-Defense Force's Type 90 tank has a price tag of about 800 million yen, two to three times more expensive than the U.S. Army's Abrams M-1 tank.

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