english.pravda.ru 10:00 2003-03-19

From Canada to Chile, Governments along the Hemisphere isolated Bush bellicose approach to Iraq

After yesterday's speech, Bush found the strongest opposition to his plans for Middle East from his closer neighbors. The most relevant hemispheric governments said that they would not support US military adventure in Iraq and that they would have preferred a UN supported peaceful approach to this conflict.

The two Latin American non-permanent seats at the UN Security Council, Chile and Mexico, had anticipated their disagreement on Bush's yesterday's speech at the White House. Chile, in particular had made a proposal last week that could have avoided war in Middle East. However, its ideas were rudely rejected by the US administration before Bush's trip to the Azores' meeting.

President Ricardo Lagos maintains the faith on a peaceful resolution to the conflict, even at risk of breaking off the close commercial ties with USA, analysts say. According to local newspapers Lagos is on the phone at this moment trying to agree a common position with the other non-permanent seats at the Council.

Mexico, the main US trading partner holds a similar position than Chile. On a TV statement two hours after Bush's, President Vicente Fox made clear for the first time, country's approach to the Iraqi crisis. "We share the same values and objectives than USA, UK and Spain. However, we disagree with their procedures and timetables", said Fox. "Mexico insists on a peaceful multilateral way to resolve conflicts and regrets the road to war", concluded firmly the Mexican Head of State.

In turn, the former Mexico's Foreign Minister Jorge Castaneda went further and said that thanks to Chile and Mexico, USA could not pass the so-called second resolution to allow the use of force against Iraq. "Without the strong Mexican and Chilean opposition they would have obtained the nine votes", said Castaneda.

Yesterday, the Canadian Prime Minister Jean Chretien said clearly and loudly: "Canada will play no role on the war against Iraq". Canada's Foreign Office had proposed a 30 days timetable to allow UN inspectors to disarm Saddam peacefully, but was ignored by its southern neighbor.

Mercosur countries also expressed their disagreement with the US administration bellicose position on Iraq and reiterated a strong support to Chile's position at the Security Council. Brazil's President Luiz Inacio Lula Da Silva had anticipated last week a negative assertion on a military action in Middle East. Argentina, in turn, had clearly stated its pro-UN approach to the crisis one month ago and evacuated yesterday its 84 military officers in Kuwait. "We do not support any military action against Iraq", said Argentine Foreign Minister Carlos Ruckauf in response to a British enquiry submitted yesterday to Buenos Aires.

Those Latin American countries undoubtedly linked to Bush's administration, Colombia and Peru by case, opted to keep a low profile on this issue. Neither Lima nor Bogota have issued any formal statement until now.

There are many factors lying behind the Americas' objection to Bush. One of this is the strong Vatican opposition to the war. In a Catholic environment, Pope's active rejection on military plans to resolve the crisis had a very relevant influence on people and authorities' views. Also, the Americas have a long tradition of respectful policies towards the United Nations; the lack of interest shown by US diplomats on building up a consensus inside the organism could set a serious precedent looking forward incoming issues like Colombia and Venezuela.

Also, It should not be underestimated Spain's alignment to USA. The Spanish Prime Minister Jose Maria Aznar is a kind of scarecrow for Latin Americans governments. Many consider him mere simple lobbyist behind Spanish largest corporations' interests in the region and are afraid of a broader alliance with Washington.

Economics reasons have to be taken into account, too. Dollar diplomacy did not work out this time. Perhaps, a strengthened Euro also played its role on this.

Hernan Etchaleco PRAVDA.Ru Argentina

www.euobserver.com

The Labour Party said that the Netherlands should not give ‘political support’ to the Americans. (Photo: EUobserver.com) EUOBSERVER / AMSTERDAM - The risk that the formation of a new centre-left coalition in the Netherlands will collapse over the war on Iraq has increased substantially. In an intense parliamentary debate last night, a sharp clash of opinions took place between the Labour Party (PvdA) and the Christian Democrats (CDA), who are currently negotiating the formation of a new government.

The Labour Party leader, Mr Bos, said that the Netherlands should not give ‘political support’ to the Americans. The PvdA will probably take part in a peace demonstration in Amsterdam on Saturday.

The parliamentary leader of the CDA, Maxime Verhagen, described the position of the PvdA as ‘sad’. The position of Prime Minister Balkenende’s outgoing centre-right cabinet, which has affirmed its ‘political’ but not military support for a US-led Iraq war, is generally regarded as a concession to the PvdA. This concession was necessary if Dutch policy on Iraq was to be consistent after a centre-left Cabinet assumed power.

Building government more difficult However, now the PvdA seems to be sticking to its total rejection of a war on Iraq. This makes a CDA-PvdA coalition, thought to be the only stable combination of parties that has a majority in parliament, increasingly difficult.

The cabinet’s distinction between ‘political’ and ‘military’ support was sharply critisised by both right-wing and left-wing parties as ‘hypocrital’ and ‘cowardly’. The leader of the List Pim Fortuyn (LPF) said that Holland would leave its most important ally, the United States, isolated by refusing military support. According to Femke Halsema, of the Greens (GroenLinks), the Dutch were contributing to the violation of international law by giving its political support to the US.

Dutch Patriot missiles sent to Turkey The distinction between ‘political’ and ‘military’ support is even more remarkable given the fact that Holland is on the list of 30 states who will back the US in its war against Iraq, released by the US State Department on Tuesday.

The Dutch have already sent Patriot missiles to Turkey. Among the 30 states who form part of the ‘coalition of the willing’ are four other EU member states: Denmark, Italy, Spain and the UK. All these other EU member states have offered some form of active military support.

Press Articles De Volkskrant

Written by Mark Beunderman Edited by Honor Mahony

www.euobserver.com

Portugal is not going to declare war on Baghdad, nor will it send troops or participate in any military operations. (Photo: Jan Oberg) Portugal will not participate militarily in an attack on Iraq, according to the Portuguese Prime Minister, Jose Manuel Durão Barroso.

This announcement coincides with the release of a US State Department list of 30 countries that have pledged support over a war with Iraq. Portugal was not one of the named countries.

During a parliamentary debate Tuesday, Mr Durão Barroso guaranteed that support given to George Bush was solely "political" and that Portugal is "not going to declare war on Iraq, nor will it send troops or participate in any military operations."

Allowing the use of airbase Portugal will however allow the use of its airbase at Lajes in the Azores, which hosted the "summit of war" on Sunday. Supporting the US, the prime minister said, will provide Portugal with greater stability and security in the fight against terrorism.

The Portuguese opposition parties have announced that they are going to table a motion of censure over the Government's position and handling of the situation. They have accused the prime minister of violating the constitution, of turning the country into a terrorist target and of disregarding the position of President Jorge Sampaio.

The President is due to make a statement regarding impending military action. Opponents to the prime minister are hoping that the President will declare that war against Iraq is illegitimate and some privately wish that he will threaten to dissolve Parliament, though this is unlikely.

Gulf of opinion Support for Mr Durão Barroso from his own party has been virtually unanimous, unlike his counterparts in Spain and Great Britain. And answering his critics, the prime minister accused the opposition of trying to start an internal war between the political parties. He went on to add that relations between the government and the President, "had probably not been better between since 25 April 1974," (the day of Portuguese independence, after the death of Salazar.)

However there has been a gulf of opinion between Mr Durão Barroso and President Jorge Sampaio.

Mr Sampaio has argued that a war against Iraq without UN Security Council approval would risk seriously undermining the legitimacy of the UN and stated that unilateral actions by Washington would put the future of the United Nations at risk. He also said that the crisis had uncovered acute differences within the internal unity of the European Union, which could damage the creation of a European foreign policy.

Spain providing 900 soldiers for post-war peace keeping Meanwhile, the Spanish prime minister, José Maria Aznar has announced that Spain would not send troops to fight against Iraq, but would instead provide 900 soldiers to be used for post-war peace keeping and humanitarian duties.

It has also offered to provide three ships, including the hospital-ship Galicia. Like Portugal, it would allow its bases to be used by US and UK forces. Spain was only one of two countries holding a rotating seat on the UN Security Council to support the US and the UK.

See press Articles Jornal de Noticias O Publico Diario de Noticias

Written by James Keighley Edited by Honor Mahony

www.euobserver.com

Europe - more divided than ever over war against Iraq.

The war in Iraq began in the early hours of Thursday morning. Following an address by American President George W. Bush around two hours after the expiry of his 48 hour deadline for Saddam Hussein to step down, aerial attacks started in earnest against Iraq.

"Now that conflict has come, the only way to limit its duration is to apply decisive force. And I assure you, this will not be a campaign of half measures and we will accept no outcome but victory," said the American president.

Meanwhile governments all over Europe are holding a series of crisis meetings. The Italian government called a crisis meeting for early this morning, while Spanish premier José María Aznar held telephone calls with the American president and the UK premier Tony Blair after the military attack began, reports Le Figaro.

Mr Aznar is expected to speak later this morning after holding crisis talks with King Juan Carlos and head of the socialist opposition José Luis Rodriguez Zapatero.

German chancellor Gerhard Schröder arrived in his office minutes after the Anglo-American attack started against Baghdad. He spoke to French president Jacques Chirac and Russian leader Vladimir Putin - the three were united against the war - and he is expected to give a televised speech later.

Belgian Prime Minister Guy Verhofstadt deplored the start of war and denounced the flouting of international law, the French news agency AFP reported.

Tony Blair will convene a war cabinet with his closest ministers this morning, reports the BBC.

The UN has been left in tatters because of the diplomatic fights about whether to push for a second UN resolution. Its Secretary General Kofi Annan said his thoughts were with the ordinary people of Iraq as they faced the "disaster of war."

He warned the US and UK that "under international law, the responsibility for protecting civilians in conflict falls on the belligerents."

All EU leaders, despite the huge tension caused by the start of the war and the harsh words flung back and forth in the run up to it - particularly between the UK and France - are for the moment still intending to meet this evening in Brussels for the European Spring Council.

See press Articles La Libre Belgique Die Welt Izvestia BBC Sueddeutsche Zeitung CNN Gazeta Wyborcza Le Figaro

Written by Honor Mahony Edited by Sharon Spiteri

washingtontimes.com By Patrice Hill THE WASHINGTON TIMES

     The Federal Reserve, against a backdrop of plunging oil prices, was guardedly optimistic yesterday that the clouds cast over the economy by near-record oil prices and the Iraq crisis will soon lift.      After a daylong meeting of its rate-setting committee, the central bank said it had "heightened surveillance" to gauge the economy's response to the sudden drop in oil prices and other developments precipitated by the Bush administration's move toward war.      "The hesitancy of the economic expansion appears to owe importantly to oil price premiums and other aspects of geopolitical uncertainties," the committee said in a statement. "As those uncertainties lift," the economic climate should improve, it added.      The sharp rise in stock prices and unexpectedly big drop in oil rates this week to under $32 a barrel in New York trading appeared to vindicate Federal Reserve Chairman Alan Greenspan's prediction of a quick economic rebound once a decision is made on Iraq.      But the Fed yesterday was careful to add that it cannot predict the course of the war and, thus, its lasting effect on the economy, and that the reserve is poised to respond whichever way the situation goes. The Fed did not act on interest rates.      A good part of the "war premium" on oil prices referred to by the Fed, which drove prices close to $40 late last month, evaporated in the past two days on hopes that the war will go according to Bush administration plans and end quickly. Yesterday, prices plummeted more than 9 percent to $31.67 in New York trading.      The drop did not occur in time to prevent gasoline prices at the pump from hitting a record high last week, however. The shock from high gas prices and home-heating bills is one of the biggest threats that economists say could trip the weak economy back into recession.      The run-up in energy prices this year "has been at least comparable — and perhaps larger than — the spike that preceded the 1990-1991 Gulf war" and recession, said Mickey D. Levy, chief economist with Banc of America Securities.      Mr. Levy noted that the jump in energy prices for consumers has been almost identical to the rise that helped push the economy into recession in 2001, and that the drop in oil prices this week did not come a moment too soon.      But he expects energy prices to remain elevated and pose difficulties for the economy, even if the war in Iraq goes smoothly.      "[Organization of the Petroleum Exporting Countries] quota reductions in early 2002 and the persistent disruption of Venezuela's oil production have been key influences that are not likely to quickly reverse even with the discharge of some of the Gulf tensions," he said.      Gasoline prices may be slow to respond to the plunge in oil prices this week, because stocks are near their lowest levels in three decades.      The available oil has been diverted more into production of home-heating fuel than has been customary owing to the severely cold winter, reducing the oil available to build gasoline stocks for the summer driving season, Mr. Levy said.      While high energy prices have been cutting into consumers' purchasing power, they also have had a marked effect on consumer psychology. Consumer confidence is at the lowest level in a decade.      A survey released yesterday by the NPD research group found that nearly half of consumers plan to cut their discretionary spending because of high gas prices.      That is more than twice the number that said they would trim spending and family outings because of fears about war or terrorism, the group said.      "Not only are people cutting back on big-ticket items, but they are also spending less on relatively inexpensive entertainment activities like dining out," said Jon Swallen, senior vice president at Universal McCann, a private research group that recently documented a drop in consumer buying plans.      Travel spending is taking a disproportionate hit, he said, with a third of consumers saying now is a bad time to fly or take a vacation trip.      Spending has been the engine of the economic recovery in the past year, and any big pullback by consumers in response to high energy prices or war in Iraq threatens economic growth, analysts say.      One war-related problem that developed during the Gulf war was the so-called "CNN effect," as consumers stayed home and watched the Iraq developments unfold on the 24-hour cable television network. That resulted in a big drop in consumer spending that drove the economy closer to recession.      That is why the Fed is following closely reactions to developments in the Middle East, and is prepared to cut interest rates immediately, if necessary, to provide another prop for consumers, said Joel Naroff of Naroff Economic Advisers.