August 26, 2005

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 26, 2005

1//Asia Times Online, Hong Kong-- KILLING THE DOLLAR IN IRAN (Could the proposed Iranian oil bourse [IOB] become the catalyst for a significant blow to the influential position the US dollar enjoys? ... . Especially in the case of Iran, it does not make sense to accept dollars only for its much-desired commodity. Given that Iran is seen as a hostile country by the current US administration for its intention to build its own nuclear reactors, one wonders whether the new IOB will not try to attract buyers other than Americans. Iran has recently announced that the new oil exchange will start up its computers in March 2006. ... . Only one major actor stands to lose from a change in the current status quo: the US, which with less than 5% of the global population, consumes roughly one third of global oil production. Oil in euros would benefit millions more in the EU and its trading partners, though. And it would loosen the grip the US has on OPEC members. Thinking of the rapid growth of hostilities between the US and Arab nations in recent years, a renunciation of the dollar appears to be more than just an Arab daydream. As this development poses a very real danger to the superior status of the greenback and the interests of the US, the "president of war" can be expected to take a strong line against the winds blowing from the Middle East. One may be reminded that Saddam Hussein had entered into discreet talks with the EU, proposing to sell his oil for euros. That was in the year before the first oil war of this century.)

2//The Turkish Daily News, Turkey--TURKMENS SAY DRAFT IRAQI CONSTITUTION WILL BRING DESTRUCTION (Iraqi Turkmens have criticized a draft constitution for Iraq, saying its provisions would victimize and assimilate the Turkmen community in the war-torn country. Turkey, which has said protection of Turkmen rights in Iraq was a priority, however, apparently has a positive view of the document after an initial assessment at the Foreign Ministry. ... . Turkmens, the third-largest ethnic community in Iraq after Arabs and Kurds, fear they will be slowly assimilated in Kurdish-run northern Iraq because of the draft constitution's provisions strengthening de facto control of the region by Kurdish groups. "Turkmens, who were founders of Iraq and who have defended the territorial integrity of Iraq up to now, will be assimilated," a statement from the Ankara office of the Iraqi Turkmen Front (ITC) said. In a move likely to further extend Kurdish influence in northern Iraq, the draft constitution scraps the "special status" for the disputed city of Kirkuk and for the capital, Baghdad, which is set out in an interim constitution for Iraq that is currently in effect. ... . Despite the overall positive assessment of the draft constitution, Turkey shares Turkmen concerns over the draft constitution's provisions that scrap the special status for Kirkuk and allow Kurdish migration to the city.)

3//The Daily Times, Pakistan--MUSHARRAF, BUSH, IN STATE OF 'CAUTIOUS COMPROMISE' (A crisis in US-Pakistan relations is brewing just beneath the surface despite expressions of unity in the war against Al Qaeda, according to Stratfor, a news and analysis service available through subscription. The analysis by George Friedman and Kamran Bokhari asserts that cooperation at the operational and tactical levels between the two countries is nearly nonexistent and calculated interference by Pakistani intelligence and security elements is hindering US operations in the country. The two researchers note that on the surface, Musharraf and Bush are in a state of "cautious compromise" with Washington continuing to express confidence in the former's government and offering increased military assistance to his country. ... . Islamabad believes that Pakistan's importance as a US ally is likely to dissolve if Bin Laden is captured or killed. Washington has been attempting to strengthen its ties with India and is even trying tentative negotiations with Iran, with the eventual goal of warmer relations. Should these efforts bear fruit, the Musharraf regime's geopolitical importance to the United States will diminish, leaving the regime as a potential member of the "outposts of tyranny" rather than a close anti-terrorism ally.)

4//The Independent, UK--SHARP RISE IN BUGGING EXPOSES ITALIANS' DIRTY SECRETS TO THE PUBLIC (Practically every public act in Britain today is recorded by CCTV cameras, but in Italy the ubiquitous form of surveillance is the bugged telephone. The Eurispes think-tank has revealed that 30 million Italians between the ages of 15 and 70 has been bugged in the past 10 years. Their report says: "Every Italian family" has been touched by the phenomenon, "at least once." And the amount of bugging is increasing at blinding speed. ... . It is an assault on privacy that one would expect the freedom-loving, tax-evading Italians to resent. But when the Prime Minister, Silvio Berlusconi, called for new controls to be put on phone-tapping, with jail terms of up to 10 years for those who leak transcripts, there was scant enthusiasm for the idea.)

5//Inter Press Service News Agency, Italy--WAL-MART'S PLANS FOR INDIGENOUS AREAS UNDER FIRE (The U.S.-based retail giant Wal-Mart, which last year opened a store near the ancient Teotihuacan pyramids of Mexico despite loud protests from local activists and small businesses, is now seeking a repeat of its earlier victory, this time in two heavily indigenous areas. But local opponents are set for a pitched battle. This time we will definitely keep Wal-Mart from continuing its attack on Mexico's culture and its people," said Lorenzo Trujillo, head of the Civic Front for the Defence of Teotihuacan Valley, a coalition made up of local residents and shopkeepers from the internationally renowned archaeological zone. "We will occupy public offices and will do everything necessary to impede Wal-Mart's cultural plunder," the activist told IPS. Trujillo is facing legal action for the protests his organisation held against the construction of a Wal-Mart store less than two kilometres from the Teotihuacan pyramids. ... . The buildings and roads built in the area where the original city of Teotihuacan was located only left the 263-hectare ceremonial centre and part of a 200-hectare "buffer zone" surrounding it intact. ... . Activists predict that only the ceremonial centre of Tollan Teotihuacan, an indigenous name that means "Where Men Become Gods", will be left in 20 years.)

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1//Asia Times Online, Hong Kong Aug 26, 2005
http://www.atimes.com/atimes/Global_Economy/GH26Dj01.html

KILLING THE DOLLAR IN IRAN
By Toni Straka
(Toni Straka is a Vienna, Austria-based independent financial analyst and portfolio manager, who worked as a financial journalist for over 15 years and now evaluates global market trends. He runs a blog, The Prudent Investor, where this piece first appeared.)

Could the proposed Iranian oil bourse (IOB) become the catalyst for a significant blow to the influential position the US dollar enjoys? Manifold supply fears have driven the price of crude oil to its recent high of US$67.10 - only a notch below its highest price in inflation-adjusted dollar terms. With the world facing a daily bill of roughly $5.5 billion for crude oil at current price levels, it becomes apparent that sellers and purchasers of the black gold are looking into all ways that could lead to a financial improvement on their respective sides.

Non-US-dollar holders so far have been the victim of additional transaction costs in the oil trade. The necessary conversion of local currencies into oil-buying greenbacks can be considered a hidden tax, charged and enjoyed by the international banking sector. The IOB, by eliminating this transaction cost, will become a factor that could unsettle the dollar's dominant position. While the worldwide bottleneck of inadequate refining facilities and partly dramatic declines in production - for example in the North Sea - are two factors that cannot be eliminated in the short term, there is one area left which could result in smiling faces of oil producers as well as most buyers.

Oil consumers are entangled in a web of supply fears that span the globe. In Venezuela, President Hugo Chavez threatens to divert oil supplies from the US to China, which faces severe gasoline and diesel shortages these days. Attacks on Iraqi oil installations have slowed exports there. Ecuador's oil industry is still recovering from a strike, while Nigerian oil companies are in the middle of efforts to avoid a strike there.

Until now, oil has been solely priced, traded and paid for in the greenback on markets in both London and New York. But monthly worldwide oil revenues of over $110 billion (on a 20-trading-day basis) - a third of which ends up with OPEC (Organization of the Petroleum Exporting Countries) members - raise the question of what happens to these cash mountains. According to the most recent data from the US Treasury Department, OPEC members have parked only a skimpy $120 billion in direct dollar holdings, which are almost equally split between equities and American debt paper. This is a clear indication that oil producers are investing their windfalls elsewhere. The yield spread between US and EU debt papers in favor of the EU is another hint where the petrodollars might be heading.

Especially in the case of Iran, it does not make sense to accept dollars only for its much-desired commodity. Given that Iran is seen as a hostile country by the current US administration for its intention to build its own nuclear reactors, one wonders whether the new IOB will not try to attract buyers other than Americans. Iran has recently announced that the new oil exchange will start up its computers in March 2006.

(SNIP)

Iran holds a strong hand as the No 2 producer of crude behind Saudi Arabia, pumping 5% of the world's oil demand. Politicians there will also keep in mind that dollar deposits might become a burden in the future, if the US steps up its current war of words to the level of economic sanctions in the attempt to halt construction of Iran's nuclear power plants. Money in the bank does not help when you have no access to it. Substituting Iran's domestic oil demand partly with nuclear power will place the country in a win-win situation. Cheaper nuclear energy and increases in oil exports from the current level of roughly 2.5 million barrels a day will result in a profitable equation for Iran.

Only one major actor stands to lose from a change in the current status quo: the US, which with less than 5% of the global population, consumes roughly one third of global oil production. Oil in euros would benefit millions more in the EU and its trading partners, though. And it would loosen the grip the US has on OPEC members. Thinking of the rapid growth of hostilities between the US and Arab nations in recent years, a renunciation of the dollar appears to be more than just an Arab daydream.

As this development poses a very real danger to the superior status of the greenback and the interests of the US, the "president of war" can be expected to take a strong line against the winds blowing from the Middle East. One may be reminded that Saddam Hussein had entered into discreet talks with the EU, proposing to sell his oil for euros. That was in the year before the first oil war of this century.

The IOB could help the euro to become the interim primary reserve currency before China and India rise to the first two slots in the global economic ranking in the next few decades. A decline of the dollar's position in oil trading might also open the floodgates in other commodity markets where the dollar is the medium of exchange but where the US has only a minority market share. A global economy driven by tough efficiency demands in the light of thin profit margins almost everywhere is a good primer for accounting changes in other commodity markets as well. This process could begin in resources like steel and energy and spread to all other resources that are marketed globally. The world outside the US has a lot to gain from it.

2//The Turkish Daily News, Turkey Thursday, August 25, 2005
http://www.turkishdailynews.com.tr/article.php?enewsid=21688

TURKMENS SAY DRAFT IRAQI CONSTITUTION WILL BRING DESTRUCTION

Ankara, however, gives an initial thumbs-up to the document because it fulfills its main expectations concerning Iraq's political unity and territorial integrity

ANKARA - Turkish Daily News - Iraqi Turkmens have criticized a draft constitution for Iraq, saying its provisions would victimize and assimilate the Turkmen community in the war-torn country.

Turkey, which has said protection of Turkmen rights in Iraq was a priority, however, apparently has a positive view of the document after an initial assessment at the Foreign Ministry.

The first impression of the Foreign Ministry officials who studied the draft constitution after receiving it Tuesday night is positive, diplomatic sources said. Officials believe the draft text does not include any element that could endanger the territorial integrity or political unity of Iraq and that it is important that the document stipulate that sovereignty lies with the people of Iraq.

(SNIP)

Turkmens, the third-largest ethnic community in Iraq after Arabs and Kurds, fear they will be slowly assimilated in Kurdish-run northern Iraq because of the draft constitution's provisions strengthening de facto control of the region by Kurdish groups.

"Turkmens, who were founders of Iraq and who have defended the territorial integrity of Iraq up to now, will be assimilated," a statement from the Ankara office of the Iraqi Turkmen Front (ITC) said.

Kirkuk worries:

In a move likely to further extend Kurdish influence in northern Iraq, the draft constitution scraps the "special status" for the disputed city of Kirkuk and for the capital, Baghdad, which is set out in an interim constitution for Iraq that is currently in effect.

Kurds say Kirkuk should be included in the "Kurdistan" autonomous region, including three provinces in northern Iraq. Turkmens also claim control of the city, saying they are the historical inhabitants of the city. They say the city's Kurdish population has been inflated as Kurds from other parts of Iraq and even other countries have been brought into the city to register as residents there.

Turkmens complain that the draft constitution legitimizes the Kurdish inflow into Kirkuk. Despite the overall positive assessment of the draft constitution, Turkey shares Turkmen concerns over the draft constitution's provisions that scrap the special status for Kirkuk and allow Kurdish migration to the city.

(MORE)

3//The Daily Times, Pakistan Friday, August 26, 2005
http://www.dailytimes.com.pk/default.asp?page=story_26-8-2005_pg1_9

MUSHARRAF, BUSH, IN STATE OF 'CAUTIOUS COMPROMISE'
By Khalid Hasan

WASHINGTON: A crisis in US-Pakistan relations is brewing just beneath the surface despite expressions of unity in the war against Al Qaeda, according to Stratfor, a news and analysis service available through subscription.

The analysis by George Friedman and Kamran Bokhari asserts that cooperation at the operational and tactical levels between the two countries is nearly nonexistent and calculated interference by Pakistani intelligence and security elements is hindering US operations in the country. The two researchers note that on the surface, Musharraf and Bush are in a state of "cautious compromise" with Washington continuing to express confidence in the former's government and offering increased military assistance to his country.

Pakistan has acknowledged the involvement of foreign forces in the counter terrorism offensive but claims that joint efforts are limited to intelligence-sharing and logistics cooperation, thus defusing both US pressure to act and domestic pressure to do the contrary.

Friedman and Bokhari write that despite the political niceties, two key issues continue to impede efforts to dismantle the Al Qaeda structure in Pakistan: professional rivalry between US security and intelligence agencies and the "dismal" performance of the Pakistani security and intelligence outfits.

Of late, certain US officials have been making a public issue of Pakistan's "non-cooperation," among them CIA Director Porter Goss, who insinuated a few months ago that bin Laden is known to be in Pakistan and for him to be captured, certain "weak links" - reference to Pakistan - must be strengthened.

The two analysts contend that there is an "ingrained distrust" of US and other foreign services within Pakistan's intelligence community. Officials don't like the idea of US pressure against their government, while others dislike being told how to do their jobs. Still others see the United States as arrogantly pursuing its own interests at Pakistan's expense. There is a great deal of resentment at all levels over what Pakistani perceives as Washington's failure to recognise the efforts, sacrifices, and cooperation it is providing.

There is also the view that the US will abandon Pakistan as it abandoned Afghanistan in the 1980s. The authors assert, "Sources in Pakistan tell us that the Inter-Services Intelligence and Military Intelligence agencies debrief all private Pakistani citizens who come into contact with US government, media and think tanks ... in attempts to restrict contact between the two countries to official channels. Additionally, certain high-level leaders of Pakistani militant Islamist movements have been declared off-limits as targets for security forces, thus leaving key segments of the international militant network unmolested. The United States is providing large amounts of supplies, money and training for Pakistani forces, but with few results."
(SNIP)

Islamabad believes that Pakistan's importance as a US ally is likely to dissolve if Bin Laden is captured or killed. Washington has been attempting to strengthen its ties with India and is even trying tentative negotiations with Iran, with the eventual goal of warmer relations. Should these efforts bear fruit, the Musharraf regime's geopolitical importance to the United States will diminish, leaving the regime as a potential member of the "outposts of tyranny" rather than a close anti-terrorism ally.

The two analysts believe that this situation cannot last indefinitely and the breaking point will come either with a misstep by Gen Musharraf that destroys the political balance he has tried to maintain within Pakistan, or a decision by Washington that delay, obfuscation and overt obstructionism will no longer be tolerated. The question that arises, the two analysts argue, is whether Gen Musharraf is in control of the "obstructionism" in the terrorism war or a victim of it. "We believe the reality is somewhere in the middle. Nevertheless, the outlook is troubling," they add.

4//The Independent, UK Published: 25 August 2005
http://news.independent.co.uk/europe/article307991.ece

SHARP RISE IN BUGGING EXPOSES ITALIANS' DIRTY SECRETS TO THE PUBLIC
By Peter Popham in Rome

Practically every public act in Britain today is recorded by CCTV cameras, but in Italy the ubiquitous form of surveillance is the bugged telephone.

The Eurispes think-tank has revealed that 30 million Italians between the ages of 15 and 70 has been bugged in the past 10 years. Their report says: "Every Italian family" has been touched by the phenomenon, "at least once." And the amount of bugging is increasing at blinding speed.

In the past five years, the government has paid €1.25bn (£820m) to the phone companies, public and private, to tap customers' phones for them. In the same period the number of taps increased by 125 per cent over the preceding five years.

The intrusion does not stop at tape-recording the conversations. When investigators pursuing the misdeeds of the high and mighty catch a top banker or politician or gangster in flagrante delicto on the phone, they waste no time in releasing the transcripts to the press. If they are juicy enough, they make front- page news. In Italy, phone-taps are used in evidence.

(SNIP)

It is an assault on privacy that one would expect the freedom-loving, tax-evading Italians to resent. But when the Prime Minister, Silvio Berlusconi, called for new controls to be put on phone-tapping, with jail terms of up to 10 years for those who leak transcripts, there was scant enthusiasm for the idea.

It is not merely the prurient delights of listening at important people's keyholes that checks opposition to phone-tapping. It is the widespread belief that bugging phones is often the only way for investigators, and the people, to find out some of what is really going on.

5//Inter Press Service News Agency, Italy August 25, 2005
http://ipsnews.net/news.asp?idnews=30025

WAL-MART'S PLANS FOR INDIGENOUS AREAS UNDER FIRE
Diego Cevallos

MEXICO CITY, (IPS) - The U.S.-based retail giant Wal-Mart, which last year opened a store near the ancient Teotihuacan pyramids of Mexico despite loud protests from local activists and small businesses, is now seeking a repeat of its earlier victory, this time in two heavily indigenous areas. But local opponents are set for a pitched battle.

This time we will definitely keep Wal-Mart from continuing its attack on Mexico's culture and its people," said Lorenzo Trujillo, head of the Civic Front for the Defence of Teotihuacan Valley, a coalition made up of local residents and shopkeepers from the internationally renowned archaeological zone.

"We will occupy public offices and will do everything necessary to impede Wal-Mart's cultural plunder," the activist told IPS.

Trujillo is facing legal action for the protests his organisation held against the construction of a Wal-Mart store less than two kilometres from the Teotihuacan pyramids.

Wal-Mart, which is now the biggest retailer in Mexico, has 710 stores and fast-food restaurants in this country of 104 million, with total revenues of more than 13 billion dollars a year.

Trujillo said he has already begun to coordinate protests and other actions with organisations of local farmers and shop-keepers in Pátzcuaro in the state of Michoacán, home to the Purépechas Indians, to keep Wal-Mart from building one of its superstores in the town.

The picturesque colonial town of Pátzcuaro has a population of 48,000, 5,000 of whom speak indigenous languages. It is located on the banks of a lake in the state of Michoacán, east of the Mexican capital. The area is famous for its typical indigenous celebrations and crafts.

(SNIP)

"We are not going to let Wal-Mart barge in with its neoliberal trade practices to sites of historical and cultural importance in Mexico. We cannot continue allowing this plunder," said Trujillo.

As during the earlier construction of the hypermarket near the pyramids - which carries the name "Bodega Aurrera", a Mexican chain that belongs to Wal-Mart - representatives of the retail giant did not respond to IPS inquiries about the plans for new stores and the resistance put up by local civil society groups.

When Wal-Mart built its supermarket in Teotihuacan, with the authorisation of the National Institute of Archaeology and History (INAH) and several other government agencies in Mexico, Trujillo's organisation held a number of protests, including the occupation of INAH offices in the Mexican capital. It is in connection with that action that Trujillo is facing charges of ransacking and use of force.

Although those opposed to the "Bodega Aurrera" store in Teotihuacan received the support of a number of academics and historians, the superstore opened its doors in late 2004.

By contrast with other Wal-Mart stores, the hypermarket in Teotihuacan is ochre-coloured and has no loud colours or signs. It is located near the ancient citadel, within the limits of San Juan Teotihuacan, a town that has grown steadily over the past 20 years to its current population of more than 45,000.

The buildings and roads built in the area where the original city of Teotihuacan was located only left the 263-hectare ceremonial centre and part of a 200-hectare "buffer zone" surrounding it intact.

A number of small local businesses in San Juan Teotihuacan have closed in the last few months, unable to compete with Wal-Mart.

The store is barely visible from the citadel of Teotihuacan, which was built by indigenous people at the dawn of the Christian era and reached its peak of splendour between the years 450 and 600 AD, when it was home to as many as 200,000 people.

(SNIP)

Activists predict that only the ceremonial centre of Tollan Teotihuacan, an indigenous name that means "Where Men Become Gods", will be left in 20 years.

According to Trujillo, "if logic and reason win out, someday in the not-too-distant future" the Wal-Mart supermarket near the pyramids will be shut down and demolished. "Time will prove us right," he argued.

The activist said the transnational corporation would continue facing resistance to its plans for building new stores in Pátzcuaro and Juchitán. But local business sources said Wal-Mart was going ahead with its expansion plans and had not run into any major hurdles.