Adamant: Hardest metal
Monday, March 3, 2003

US and Europe stop talking

news.ft.com Observer - US Published: March 2 2003 20:20 | Last Updated: March 2 2003 20:20

US and European links continue to fray. Observer hears the Transatlantic Business Dialogue, set up in 1995 to get businessmen and policymakers together to resolve bilateral trade conflicts, is fighting for its life.

In its day, the TABD attracted backing from some heavy hitters. The brainchild of Leon Brittan, then European Union trade commissioner, and the late Ron Brown, then US commerce secretary, its past chairmen include Jürgen Schrempp of DaimlerChrysler and Phil Condit of Boeing. But interest has since dwindled, particularly in the US.

One reason is the organisation's slow progress in removing transatlantic trade barriers. But Europeans say the real problem is lack of commitment in the White House, which has caused top American executives to lose interest. The TABD's Brussels office has been closed and staff are deserting its Washington operation.

Observer hears that Pascal Lamy, Brittan's successor, and enterprise commissioner Erkki Likkanen are keen to relaunch. But, says one onlooker: "It all looks like a desperate effort to revive the embers of a dying fire."

Still Gaulling

The Pentagon is not helping matters either. It just can't let France and Germany alone.

Donald Rumsfeld's infamous crack about "old Europe" started it. He followed it up with putting Germany in the same category as Libya and Cuba when it comes to helping with the Iraqi campaign. And now Paul Wolfowitz, his deputy at the Defence Department, has stepped in: discussing the costs of war, he predicts that the countries currently opposed to an invasion would join in once a war was won.

"We're talking about one of the most important countries in the Arab world," Wolfowitz says. "I would expect even countries like France will have a strong interest in assisting Iraq's reconstruction."

Not content with just France, he speculates that some countries may be putting economic interest ahead of security: "Germany is one of the largest exporters to Iraq in the world today. Maybe that has something to do with their current position."

Carpe diem

Of course, George W. Bush and Jacques Chirac have not set a good example: The way they've been forming cliques, some might say they've been acting like schoolchildren.

If so, how would America's best-known teacher straighten them out? "I'd spank them," Sam Pickering tells Observer.

As the private school teacher played by Robin Williams in the film Dead Poets Society, Pickering inspired his students to think for themselves and move beyond their petty rivalries. Could he do the same with those at the centre of the Iraq debate? "I'd have a dunce cap for Bush," he says. "I'd give As to the French and the Germans. Some of those who have been bought off, such as Turkey, I'd recommend they go straight to business school."

How does he feel about Bush's supporters, such as Tony Blair? "I can't think what I'd do with Tony Blair," Pickering says. "He'd be trying to win 'most popular in the class'."

Lest Pickering be seen as the woolly sort, he has little time for Iraq's leader: "I think Saddam would probably drop the class. I don't think he'd get along with anyone."

And what about Kim Jong-il, who has been grabbing attention on the periphery of the Iraq crisis, like the obnoxious kid? "He'd be at another school, where I wouldn't take a job."

Peaceniks

Luckily, the US and Europe can agree on one international issue: Transdnistrian peace.

In a statement, they say: "We express our continued concern over the Transdnistrian conflict in Moldova, which constitutes a serious risk for stability and security in this part of Europe."

The issue at hand is a separatist movement along the Ukrainian border that is threatening to break away from the tiny post-Soviet republic.

However, the unity of purpose does not end there. The US and the EU have agreed to slap a travel ban on the Transdnistrian leadership, who were "primarily responsible for the lack of co-operation into promoting a political settlement to the conflict." See, agreeing wasn't that hard.

Carnivalesque

Rio de Janeiro's growth has doubled. But at Carnival at the weekend, revellers saw it was confined to one sector: breasts. Plastic surgeons say the average size of silicon breast implants in Brazil has nearly doubled in two years, to as much as 300ml.

But bigger breasts have created a crisis apart from the country's economic woes: many of the larger implants have been sold out for weeks.

"Without a doubt Carnival heats up the market," says Isabel Coelho, manager with Connections, a firm that imports implants. "This year there's even been a shortage for certain implants that are particularly trendy: the bigger ones."

Brazilian men are also catching on to the trend - though they prefer to augment their buttocks and pectorals.

Naturally, in the era of anti- globalisation protests, a local company is pushing authentic Brazilian beauty: its shop has cornered the market in "boobs made in Brazil".

Time bend

As Rio's carnival rages into the wee hours, Caracas' days are growing longer. Literally.

Since protests began against President Hugo Chávez last year, a power shortage in Venezuela has caused clocks to tick more slowly - at the rate of 2? minutes a day.

"Everything that has to do with timekeeping has slowed down," the general manager of the national power grid reputedly said.

So far the slowdown has cost the country 14? hours over the past year. Too bad they couldn't export longer days to Brazil.

observer@ft.com

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