Crisis report

SITUATION REPORT Mar.2, 2010

STRATFOR, 02.03.2010

Pakistan: U.S. To Deliver Laser-Guided Bomb Kits In March
March 2, 2010 1931 GMT
The United States will deliver to Pakistan in March some 1,000 laser-guided bomb kits, enabling Islamabad to use sophisticated laser technology to guide bombs to specific targets, AP reported March 2, citing a U.S. Air Force spokesman. Some 1,000 MK-82 bombs were delivered to Pakistan in February.
Brief: U.S. To Give Pakistan Laser-Guided Bomb Kits
March 2, 2010 1925 GMT
Applying STRATFOR analysis to breaking news
The U.S. will deliver 1,000 laser-guided bomb kits to Pakistan this month, U.S. Air Force spokesman Lt. Colonel Jeffery Glenn said Mar. 2. The kits will be used with Mk-82 500-pound bombs already delivered and will replenish Pakistani stocks of the munitions depleted from operations in Swat and South Waziristan (Prime Minister Yousuf Raza Gilani warned such stocks were getting low in September 2009). The laser guidance kits are useful for targeted assassinations and more precise close air support for ground operations in the Federally Administered Tribal Areas along Pakistan's restive border with Afghanistan. Glenn also mentioned that some 18 new F-16 fighter jets -- which Islamabad has long been clamoring for -- will be delivered by June.
Greece: Civil Servants Must Take Less - PM
March 2, 2010 1922 GMT
Greek Prime Minister George Papandreou said March 2, in a speech to his socialist PASOK party, "Each day we discover new holes, new landmines, in the budget deficit," and he said the government cannot continue to subsidize pensions, adding public employees will have to get by on less money, Reuters reported.
Brief: Additional Austerity Measures For Greece
March 2, 2010 1915 GMT
Applying STRATFOR analysis to breaking news
Bloomberg reported on March 2 that the Greek government plans to announce additional austerity measures that will include cutting public workers' bonuses, and increasing sales, alcohol and tobacco taxes. The measures will reportedly amount to as much as 4.8 billion euro ($6.5 billion), or about 2 percent of 2009 gross domestic product (GDP), corroborating earlier reports. Greece ran a budget deficit estimated at 12.7 percent of GDP in 2009 and has outlined plans to reduce it to 8.7 percent in 2010. Greece outlined in its latest Stability and Growth Pact (SPG) budget how it plans to achieve the 4 percentage point reduction in the deficit. However, since Athens envisions 65 percent of the reduction coming from increased revenues, doubts -- particularly within the European Union -- remain about the efficacy of the budget and Athens' ability to achieve its target. This largely explains why European officials have pressed for austerity measures amounting to 6 percent of GDP to achieve an ostensibly 4 percent reduction. Additionally, the assumptions in Greece's SPG budget are arguably too optimistic. This concern was recently highlighted by Greece's flash estimates of fourth quarter GDP, which declined -0.8 percent over the previous quarter, worse than Athens had expected. This figure meant that Greece's 2009 GDP was actually 237.5 billion euro ($321.2 billion) and not the 240.2 billion euro ($324.9 billion) assumed by the Greek SPG budget. Consequently, it also implied that Greece's 2009 budget deficit was closer to 12.9 percent of GDP and not the 12.7 percent the Greek government had estimated. The political consequences of upwardly revising deficit figures aside, it simply means that Athens must find additional savings and hope that it has not overestimated Greece's future growth further, which is a chance the European Commission is not ready to take. While additional measures will hedge against a growth slowdown or overoptimistic budget figures, from Athens' and the bloc's perspectives, the additional measures are also partly designed to reassure the markets and help Greece finance its way through April and May, during which time it must raise at least 23 billion euro ($31.1 billion), the equivalent of about 10 percent of GDP.
Iran: IRGC Carries Out War Games
March 2, 2010 1907 GMT
Iran's Islamic Revolutionary Guard Corps (IRGC) carried out exercises "to boost vigilance and combat preparedness of its naval forces," Fars News Agency reported March 2. The forces conducting the war games reportedly were divided into three groups: assaulting guerrilla forces, anti-guerilla forces and regular guards. Fars News Agency reported that the IRGC forces "exercised new tactics of destruction and explosion in the war games."
Brief: U.S. Naval, Georgian Exercises Begin
March 2, 2010 1848 GMT
Applying STRATFOR analysis to breaking news
The U.S. Navy began exercises with Georgia's coast guard on March 2 in the territorial waters along Georgia's Black Sea coast. U.S. naval forces have been in Georgia since Feb. 25, when the frigate USS John L. Hall (FFG 32) made a port call to Georgia's Poti and then followed with a March 1 visit to Batumi. The U.S. naval visit is intended to continue military cooperation with the Georgian government under President Mikhail Saakashvili. While such U.S. naval visits and exercises with Georgia are fairly routine, they come at a time of escalating geopolitical friction between Washington and Russia, the latter of which sees encroachment by the United States in its sphere of influence. Indeed, Russia urged the United States to be "careful" in carrying out such drills, warning that they could "destabilize the situation in the region." Russia has been on the resurgence in its near abroad, making gains in countries like Ukraine, and has set its sights on pushing its influence through other pro-Western former Soviet countries like Georgia, as well as the Baltic states. These countries have been a particular point of contention between Moscow and Washington, with the United States unwilling to back down from its military and political support of these countries. Russia will not take such actions lightly and it is only a matter of time before it issues its response.
U.S.: Deputy Secretary of State Arrives In China
March 2, 2010 1835 GMT
U.S. Deputy Secretary of State James Steinberg on March 2 arrived in Beijing, where he will meet with Chinese officials to discuss bilateral issues, including the Chinese stance on dealing with Iran over its nuclear program, a U.S. Embassy spokesman in Beijing said, AP reported. Following his Beijing visit, Steinberg will travel to Tokyo for talks with Japanese officials on bilateral issues.
Georgia: Coast Guard Begins Exercises With U.S. Navy
March 2, 2010 1829 GMT
U.S. naval forces March 2 began two days of exercises with Georgia's coast guard on the Black Sea coast, Reuters reported. U.S. Commander Derek Lavan said "damage control" exercises will be conducted. The chief of Russia's Federal Security Service (FSB) coast guard department, which recently set up a coast guard division in Georgia's breakaway region of Abkhazia, said the U.S.-Georgian exercises do not "make us nervous."
Afghanistan: Live Media Coverage Of Attacks Will Not Be Banned
March 2, 2010 1753 GMT
Live media coverage of militant attacks has not been banned in Afghanistan, as has been reported, instead the Afghan government is creating guidelines to avoid the possibility of live footage aiding militants, Waheed Omar, a spokesman for Afghan President Hamid Karzai, said March 2, AP reported. Omar plans to meet with all Afghan ministries' spokesmen to work on formulating the guidelines. Omar added that one aim of the guidelines is to help protect journalists at the scene of attacks.
Brief: Businessman Stands Up To Russian PM
March 2, 2010 1720 GMT
Applying STRATFOR analysis to breaking news
Russian businessman Mikhail Prokhorov said March 2 that Russian Prime Minister Vladimir Putin's recent criticism of underinvestment in the Russian electricity sector by certain oligarchs, in which he named Prokhorov specifically, was misinformed. Prokhorov stated that "incorrect documents concerning investment programs must have been provided to the prime minister," adding that "the issue is that all companies, without exception, postponed their investment programs. There were objective reasons [for that], including a fall in demand, [and] there were also the subjective ones." Prokhorov's rebuttal likely will not be taken lightly by Putin. The Russian prime minister has targeted specific firms, particularly in the country's energy sector, to shape up in light of the country's complex and sweeping economic modernization plan, which has political undertones, over the next few years. Putin has threatened "sanctions" against those that fail to use funds, many of which came from the state following Russia's financial crisis, but the punishment is likely to bear a much stronger political cost to these businesses and oligarchs. Prokhorov's excuses, therefore, will not fly with Putin, and could threaten his financial assets but also make him a prime political target for the Kremlin. His response could also be used by Moscow as an example of what not to do in response to the Kremlin's slated reforms.
Israel: Syrian Support For Hezbollah Increasing - IDF
March 2, 2010 1712 GMT
The head of the Israel Defense Forces' research division said March 2 that Syrian support for Hezbollah is increasing, and that Damascus is supplying the group with weapons it has never supplied in the past, Ynet News reported. Military Intelligence research chief Brig. Gen. Yossi Baidatz told the Knesset Defense and Foreign Affairs Committee that Syria is crossing previous redlines in its actions.
Norway: Include Substrategic Nuclear Weapons In Talks - Nations
March 2, 2010 1709 GMT
The foreign ministers of Norway, Belgium, Germany, Luxembourg and the Netherlands sent a letter to NATO Secretary General Anders Fogh Rasmussen calling for the alliance to include substrategic (tactical) nuclear weapons in disarmament talks, EU Observer reported March 2.
Kazakhstan, Romania: Pipeline Plans Discussed
March 2, 2010 1701 GMT
Kazahk President Nursultan Nazarbayev said following a meeting with Romanian President Traian Basescu in Astana that Kazakhstan is interested in building an oil pipeline that would link the Caspian Sea to the Black Sea over the Caucasus, Upstream Online reported March 2. The pipeline would go from Kazakhstan across the Caspian Sea to Baku, Azerbaijan, then to Georgia and across the Black Sea to Romania. Nazarbayev said this pipeline could link up with the Constanta-Trieste pipeline between Romania and Italy, and that he and Basescu agreed to direct the relevant oil companies to become involved in the issue.
Slovakia: SPP Files Lawsuit Against Russia's Gazprom
March 2, 2010 1645 GMT
Slovakia's natural gas supplier Slovensky Plynarensky Priemysel (SPP) has filed a lawsuit with the International Arbitration Court asking Russia's Gazprom to compensate Slovakia for the losses incurred due to Gazprom's January 2009 halt in natural gas transit, news agency RosBusinessConsulting reported March 2. SPP did not give the amount of compensation it is requesting from Gazprom.
Brief: NATO Exercises To Show Solidarity With Baltics
March 2, 2010 1643 GMT
Applying STRATFOR analysis to breaking news
NATO warplanes will conduct flight training missions on March 17 over the Baltic states of Estonia, Latvia and Lithuania in "a demonstration of NATO solidarity and commitment to its member countries in the Baltic Region," according to a NATO statement issued on March 2. The exercises will include Polish, Lithuanian and French aircraft and will be conducted for "defensive training purposes." The announcement comes at a time of European unease, particularly in the Baltic countries, over France's negotiations to sell Mistral warships to Russia. Russia poses a significant threat to the tiny Baltic countries, particularly since its resurgence in other pro-Western former Soviet states such as Ukraine and Georgia. The exercises are thus likely a response by NATO -- and particularly France -- to reassure the Baltic countries and other nervous NATO members that the military alliance remains united, despite Russia's recent moves. These exercises will likely show little beyond symbolic solidarity to the Baltics, however, particularly since there are already regular reconnaissance NATO air patrols over Baltic territory. For the Baltics to be truly reassured, they need more direct moves, particularly from the United States, to be affirmed of their security -- moves that the United States has hinted at. The Baltics, along with Georgia, will be a key region to watch as a geopolitical tussle between the West and Russia heats up in Russia's periphery.
Armenia: President To Visit France
March 2, 2010 1642 GMT
Armenian President Serzh Sarkisian will visit France from March 9-11, PanArmenian reported, citing an unnamed source with knowledge of the trip.
Greece: Government To Announce $6.5 Billion In Budget Cuts - Report
March 2, 2010 1640 GMT
The Greek government will announce budget cuts worth 4.8 billion euros ($6.5 billion), or about 2 percent of Greece's 2009 gross domestic product, to address the country's deficit, Bloomberg reported March 2, citing an unnamed source familiar with the plan. The plan will include cuts to public employees' bonus payments and higher sales taxes. The yield fell 7 basis points to 6.18 on benchmark 10-year bonds, the lowest level since Feb. 12, and premium investors demand to buy Greek debt against German debt fell 15 basis points to 3.01 percent, the lowest level in three weeks.
Belgium: NATO To Conduct Defensive Training Over The Baltics
March 2, 2010 1621 GMT
NATO plans to conduct "defensive training" exercises March 17 over the Baltic states involving French, Polish and Lithuanian aircraft, according to a NATO statement released March 2, Reuters reported. The NATO statement said the exercises are intended as "a demonstration of NATO solidarity and commitment to its member countries in the Baltic region."
Iraq: Al-Maliki Says 'Neighbors' Financing Opponents
March 2, 2010 1615 GMT
Iraqi Prime Minister Nouri al-Maliki said March 2 that unnamed neighboring countries and countries farther away are funding political opponents of his State of Law coalition in the March 7 parliamentary elections, the BBC reported. Al-Maliki also criticized Saudi Arabia for not sending an ambassador to Baghdad, and said that if the Saudis are interested in improving relations, they are welcome to send one, but if they do not seek to improve relations, they are free to do that. Al-Maliki also said that Iraq welcomes good relations with Iran, but is not seeking an alliance with the country's ruling clerics.
North Korea: 8 Special Economic Zones To Be Created
March 2, 2010 1614 GMT
North Korea will set up eight special economic zones in Pyongyang and other areas of the country designed to attract foreign investments with tax breaks and other measures, Itar-Tass reported March 2, citing Nikkei. Representatives from North Korea's Daepung International Investment Group said a state bank will begin operations in mid-March to improve infrastructure. North Korean leadership is first targeting Chinese investments.

EU: Ukraine Gets European Neighborhood Policy Euros
March 2, 2010 1545 GMT
Ukraine will get 470.1 million euro ($636 million) from the European Neighborhood Policy, a program in which the European Union is increasing funding for 2011-2013, EU officials said, Interfax reported March 2. The program will see more than 5.7 billion euro ($7.7 billion) allocated over three years with the mission to support political cooperation and promote economic integration with EU neighbors. Funding is designed to support political and economic reforms, regional cooperation, and projects like climate change, transport, energy and the environment. EU neighbors will receive more than 2 billion euro ($2.7 billion) in 2013, compared with 1.6 billion euro ($2.16 billion) in 2010.
Brief: Ecuador's Indigenous Group Asks Others To Join Protests
March 2, 2010 1542 GMT
Applying STRATFOR analysis to breaking news
The National Confederation of Indigenous Nationalities of Ecuador (CONAIE) is calling on other social groups, including teachers, students and workers, to join in a protest movement against the government of President Rafael Correa, El Comercio reported March 2. When unified, CONAIE can be a powerful opposition force in Ecuador with the ability to seriously undermine the presidency and paralyze investment projects that impinge on indigenous rights. Though CONAIE has been slowed down due to internal feuding, the three regional branches of the organization agreed recently to end dialogue with the government and proceed with a series of escalating mass protests. The focus of CONAIE now is on recruiting additional social groups and on expanding the group's political reach at a time when Ecuador's opposition parties are eyeing an opportunity to exploit Correa's growing unpopularity. CONAIE will hold a meeting March 5 with the head of the Popular Democratic Movement (MPD), a leftist party in the opposition that has sway with Ecuador's trade and education unions. No date for a joint, nation-wide protest has yet been set. The CONAIE strategy for now is to have a series of marches which are supposed to escalate over time. The first of these marches will occur March 3 in Cuenca, where CONAIE will march against water and mining laws.
Germany, U.S.: GM Triples Opel Funding
March 2, 2010 1535 GMT
General Motors Co. will triple its funding for German automaker Opel to 1.9 billion euros ($2.6 billion) in order to secure loans and guarantees for Opel from European governments, Bloomberg reported March 2. Opel CEO Nick Reilly said the funding offer had been "well received" by all the governments involved and that an agreement may be reached within three to four weeks. The agreement to provide loans and guarantees to Opel would then be submitted to the European Union for approval.
Sri Lanka: Parliament To Reconvene
March 2, 2010 1532 GMT
Sri Lanka's dissolved parliament will reconvene on March 9 to extend an emergency law by a month before elections in April, by order of President Mahinda Rajapaksa, Reuters reported March 2, citing officials.
Brief: Polish GDP Increases 1.2 Percent, Seasonally Adjusted
March 2, 2010 1527 GMT
Applying STRATFOR analysis to breaking news
Poland's Central Statistical Office revealed on March 2 that in the fourth quarter of 2009, the seasonally adjusted gross domestic product (GDP) increased 1.2 percent over the previous period and was 2.8 percent higher than in the fourth quarter of 2008. Poland's non-seasonally adjusted GDP in the fourth quarter of 2009 was 3.1 higher than in 2008. Due to its relatively closed economy, robust domestic consumer market, resilient banking sector and the sharp depreciation of the zloty, Poland was able to escape 2009 without entering recession -- the only member of the European Union to do so. Despite expecting unemployment to stabilize around 11 or 12 percent somewhere in 2011-12, Poland's central bank is optimistic on the Polish economy's prospects as a whole, and in its February Inflation Report forecasts that, after increasing 1.7 percent in 2009, GDP will increase 3.1 percent in 2010, 2.9 percent in 2011, and 3.1 percent in 2012. It remains to be seen if the positive economic figures translate into a new-found confidence for Warsaw, which has been trying -- largely unsuccessfully -- to exude political leadership over its fellow new EU member states from Central Europe.
Russia: Croatian Aspect Of South Stream Signed
March 2, 2010 1510 GMT
Russia and Croatia signed on March 2 an agreement on the construction and operation of the Croatian leg of the South Stream gas pipeline that is expected to supply natural gas to Europe, RIA Novosti reported. Russian Energy Minister Sergei Shmatko and Croatian Minister of the Economy, Labor and Entrepreneurship Djuro Popijac signed the deal, with Russian Prime Minister Vladimir Putin and Croatian counterpart Jadranka Kosor in attendance.
Brief: China's Growing Urban-Rural Divide
March 2, 2010 1504 GMT
Applying STRATFOR analysis to breaking news
China's National Bureau of Statistics (NBS) released data on March 2 showing that the income gap between urban and rural citizens has widened to its post-1978 record. Per capita net income for urban citizens stood at 17,175 yuan (about $2,525), while for rural citizens it was 5,153 yuan (about $747). In other words, the average urban citizen's income was more than three times higher than that of the average rural citizen. China's urban centers have boomed since its economic opening, but the vast rural regions -- where, despite rapid urbanization, 55 percent of China's 1.3 billion people currently live -- have lagged behind. The rural-urban divide has given rise to 150 million migrant rural workers who seek work in towns and cities away from their homes, creating social tensions. These migrants working in cities are classified by the government as rural; if they were not, the per capita rural income would be even lower. And the divide extends to legal rights, including a household registration "hukou" system which determines one's access to social services, precluding rural dwellers from urban privileges. The Chinese government is in the midst of attempting to reform some rural-urban divisions, so as to accelerate rural development and boost domestic consumption, and these topics are being debated fervently ahead of the annual session of the National People's Congress in March. However the reform process cannot be expected to proceed quickly or smoothly, and much of the talk about improving rural conditions is aimed at soothing public anxieties in lieu of reforms bold enough to change actual circumstances.
Niger: Junta Members Visit France
March 2, 2010 1501 GMT
Members of Niger's junta, led by spokesman Abdulkarim Goukoye, met with French diplomats in Paris on March 1, and the French Foreign Ministry said on March 2 that democratic elections in the African nation need to be held as soon as possible, Reuters reported March 2. The junta goes by the name of the Supreme Council for the Restoration of Democracy.
Brief: France To Purchase Soyuz Rockets
March 2, 2010 1448 GMT
Applying STRATFOR analysis to breaking news
The chairman and CEO of Arianespace, Jean-Yves Le Gall, announced March 2 that the French government will provide $1 billion for the purchase and use of Russian Soyuz-program carrier rockets and spacecraft. According to reports, a Soyuz launch will take place from the Arianespace launch facility at Kourou in French Guiana as early as this year. With the looming retirement of the U.S. space shuttle program, Soyuz will become the only proven platform for boosting humans to orbit and servicing the International Space Station. It is unlikely the purchase was motivated to acquire the technology, as the Soyuz carrier rocket can be traced back to the R-7, the Soviet Union's -- and the world's -- first true intercontinental ballistic missile. Rather, it reflects a French interest to have a reliable means of putting human beings in orbit, and the growing French-Russian rapprochement.
Brief: Greece To Delay Bond Issuance Until After Austerity Measures
March 2, 2010 1441 GMT
Applying STRATFOR analysis to breaking news
Greek government spokesman Giorgos Petalotis told AP on March 2 that the Greek government would wait to issue new 10-year state bonds -- expected to be in the amount of 5 billion euros (about $6.7 billion) -- until it has seen how the markets respond to its new austerity measures. The Greek Cabinet will debate the austerity measures March 3, with expected announcement on March 4. Greek Prime Minister George Papandreou is expected to also present the new measures when he visits Berlin for a meeting with German Chancellor Angela Merkel on March 5. Greece sold 8 billion euro worth of government bonds in January. Investor demand for the bonds at that offering was positive, although Greece had to pay a premium to attract investors to the auction. This entire year Athens will have to borrow around 53 billion euros, with approximately 23 billion euros needed to be raised by the end of May because of maturing debt tranches. The wait on issuing debt may be also prompted by the need to convince not only investors but also European capitals, specifically Berlin, that Athens is willing to make sacrifices to end its crisis. This may be a move designed for audiences in Germany, where the public is opposed to any bailout of Greece. A signal that Greece is serious and determined to pull itself out of the crisis through austerity measures would make it politically more palatable for Merkel to push for aid, if she chooses to do so.
Nigeria: FM Begins African Tour
March 2, 2010 1440 GMT
Nigerian Foreign Minister Ojo Maduekwe on March 2 began a 10-day trip to Malawi, Mozambique, Angola, Namibia and Botswana, Next reported, citing a ministry spokesman. In Malawi, he will meet with Malawi President and African Union Chairman Bingu wa Mutharika and the foreign minister; in the other countries, he will meet with the foreign ministers and other leading officials.
Turkey: Ankara Willing To Withdraw From Cyprus - Erdogan
March 2, 2010 1430 GMT
Turkey would agree to withdrawing its troops from Cyprus if a peace agreement is reached between Greek and Turkish Cypriots, Turkish Prime Minister Recep Tayyip Erdogan said on March 2, reported Reuters. Erdogan said the issue has been discussed in the past.
Brief: Ruling Ukrainian Coalition Dissolved
March 2, 2010 1426 GMT
Applying STRATFOR analysis to breaking news
Ukrainian Parliament Speaker Volodymyr Lytvyn said March 2 that the ruling coalition of Prime Minister Yulia Timoshenko has dissolved after failing to provide enough lawmakers' signatures to prove it has a majority in the parliament. The dissolution comes on the heels of the election of pro-Russian candidate for president, Viktor Yanukovich, and one day before a vote of no confidence is scheduled to take place in parliament on March 3. Yanukovich has been putting pressure on Timoshenko (whom he defeated in the election) to resign from her post as prime minister so he can name his own prime minister and form a new coalition led by his Party of Regions. Timoshenko has refused to step down, and thus a battle for control over the parliament has ensued. In order for Yanukovich to gain majority in the parliament (226 of 450 seats), he will need to the support of one of the major parties from Timoshenko's former coalition -- either her eponymous bloc, which holds 156 seats, or former President Viktor Yushchenko's Our Ukraine party (76 seats), with the former being highly unlikely. The two smaller parties in the parliament, -- the Lytvyn bloc (20 seats) and the Communists (23 seats) -- would still not give Yanukovich the majority he needs (the Party of Regions holds 175 seats), so it will likely come down to whether the new president will be able to persuade Our Ukraine to form a coalition. If the vote of no confidence on March 3 passes, which appears likely since Timoshenko has lost support of much of her coalition, Yanukovich will then have 30 days to form his coalition. If that fails, Yanukovich can dissolve the parliament altogether and call for early parliamentary elections. It appears that the deadlock and chaos characteristic of internal Ukrainian politics will continue, but on the matter of geopolitics, Ukraine under Yanukovich is firmly in Russia's orbit.
Egypt: President To Visit Germany
March 2, 2010 1425 GMT
Egyptian President Hosni Mubarak will meet with German Chancellor Angela Merkel in Berlin on March 4 to discuss the Middle East peace process, and bilateral and regional issues, DPA reported March 2, citing a German government spokesman.
China: Clean Energy Program Targets 15 Percent By 2020
March 2, 2010 1421 GMT
Clean energy in China will account for 15 percent of total consumption by 2020, said Zhang Guobao, head of the National Energy Administration, reported China Daily on March 2. Billions will be invested in the building of nuclear power stations, wind farms, solar power plants and research of renewable energy technologies, he said. Zhang said the program will be made public soon; he did not give a specific date. He said the National Energy Commission will hold its first meeting soon. Researchers, scientists and officials drafted the program in 2009.
Kosovo: Independence Irreversible - French FM
March 2, 2010 1413 GMT
French Foreign Minister Bernard Kouchner, while in Pristina, called Kosovo independence irreversible from the French perspective, B92 reported March 2.
Brief: Russia To Help Train Angolan Border Police
March 2, 2010 1407 GMT
Applying STRATFOR analysis to breaking news
Russian security officials were in the Angolan capital of Luanda March 1, where they signed a deal to help train members of the Angolan border police with the aim of strengthening the country's internal security. Angola has had a series of well-publicized spats with the government of the neighboring Democratic Republic of the Congo (DRC) in recent months over the issue of illegal Congolese immigrants crossing the countries' porous border and engaging in illicit mining in Angola's Cuango Valley, as well as in the northeastern Lunda Norte and Lunda Sur provinces. Russian support will likely help Luanda to improve its defenses against this problem. The diamond industry is a lucrative one for Luanda, and the ruling Popular Movement for the Liberation of Angola (MPLA) is extremely sensitive to the issue of illegal mining, as this served as one of the main sources of funding for the MPLA's main adversary, the National Union for the Total Liberation of Angola (UNITA), in the country's 27-year civil war. Russian support for the MPLA is nothing new, as it served as the Angolan ruling party's patron during the Cold War dating back to the months before the official outbreak of the war in 1975.
India, Pakistan: Troops Exchange Fire - Brig. Gen.
March 2, 2010 1403 GMT
Pakistani troops fired rockets and shot with heavy machine guns along the Line of Control in Mendhar sub-sector of Poonch district 8:55 p.m.-12:15 a.m. local time on March 1-2, and Indian troops returned fire with small arms, Press Trust of India reported March 2, citing Indian Brig. Gen. Gurdeep Singh. Pakistani troops reportedly fired on the Indian posts of Kranti, Kranti 1, Kirpan, Ghora and Deep. No casualties were reported. The attacks came from Pakistan's Battal and Daku posts. Singh called it a clear violation by Pakistani troops, and said a complaint has been lodged.
Brief: Syrian Concerns And Influence In Iraq
March 2, 2010 1329 GMT
Applying STRATFOR analysis to breaking news
Syrian President Bashar al Assad told reporters during a visit to Damascus March 2 by Iraqi Vice President Tariq al-Hashemi's (the country's highest-ranking Sunni official and a key member of the country's main non-sectarian political bloc) that the upcoming parliamentary elections on March 7 will be critical for peace in Iraq. Al Assad's comments should be seen in the context of the long-standing tension between the two countries over the rivalry between the Baathist regime in Baghdad and Alawite-Baathist regime in Damascus, which has remained even after the fall of Saddam Hussein's regime. While relations have improved somewhat from where they were during the height of the insurgency in the 2004-07 period and diplomatic links were revived in 2006, the Shia-dominated Iraqi government is still concerned about Syrian support for Iraqi Baathists, which will be reinforced by Damascus' alignment with its opponents. Ambassadors were recalled following the explosions in Baghdad in August 2009, for which Baghdad holds Damascus responsible. While the Baghdad government did not offer any proof for this charge, Syria has long provided sanctuary to militants to attack Iraq in order to keep the U.S. forces off-balance and prevent a possible American invasion in Syria. Syrians also see Iraq as a lever to regain its influence in Lebanon. Moreover, Syria is concerned about a politically stable Iraq which has the potential to become one of world's major oil exporters while Syria's economy remains weak. Non-sectarian opponents of Iraq's Shia political factions hope to get Syrian support (which is why the head of the country's largest centrist bloc and former interim Prime Minister Iyad Allawi will visit Damascus March 4). Syria's alignment with Sunnis and non-sectarian forces highlights a key divergence of interests between Syria and Iran -- one which the Iranians will have to sort out in order to be able to successfully push ahead with their plans to consolidate their influence in Iraq.
Iran: Diplomacy Remains An Option - Russian FM
March 2, 2010 1320 GMT
Russian Foreign Minister Sergei Lavrov said on March 2 that there remains room for diplomacy instead of sanctions regarding Iran's nuclear program, and that diplomatic solutions will be pursued, Reuters reported. Lavrov said his comments aligned with a statement by Russian President Dmitri Medvedev.

EU: Eurozone Inflation Slows In February
March 2, 2010 1305 GMT
Consumer prices in the eurozone increased an estimated 0.9 percent in February from the same period in 2009 and after rising 1 percent in January, Eurostat announced March 2.
China: U.S. Responsible For Strained Relations - Foreign Ministry
March 2, 2010 1300 GMT
The Chinese Foreign Ministry said on March 2 that Washington is solely responsible for strained relations between the two nations, Bloomberg reported. A ministry spokesman said the United States should respect Chinese efforts to return relations "back on the track of sound and healthy development."
UAE: Operative Possibly Tracked By Arab Agents - Hamas Official
March 2, 2010 1250 GMT
Hamas senior operative Mahmoud al-Mabhouh, assassinated in Dubai, was likely being tracked by Jordanian or Egyptian agents before the Jan. 19 killing, Reuters reported March 2, citing an interview by Al-Quds Al-Araby daily with Mahmoud Nasser, a member of Hamas' political bureau. Nasser said evidence indicated that al-Mabhouh was killed earlier than the agents had planned, and that al-Mabhouh had information that could be seen as dangerous to those trying to quash Islamist resistance.
Greece: Strike Looms As Athens Reports To EU
March 2, 2010 1236 GMT
Applying STRATFOR analysis to breaking news
The largest Greek public sector union, ADEDY, has called for a 24-hour general strike on March 16 -- the same day as the deadline set by eurozone finance ministers for Athens to report on the success of its budgetary austerity measures. Leaders of ADEDY expect the other public sector union, GSEE, to join the strike, which would mean that nearly half of the Greek labor force would participate. Unions are protesting new austerity measures -- largely expected to hit the pocketbooks of public sector employees through pay freezes -- to be announced the week of March 2 by Greek authorities. Strikes, however, will create an impression that Athens is incapable of achieving the austerity measures and could erode investor confidence that the plan to cut the deficit by 4 percent in 2010 will work.
Lebanon: President To Visit Saudi Arabia
March 2, 2010 1229 GMT
Lebanese President Michel Suleiman will visit Saudi Arabia on March 6-7 to meet with King Abdullah and senior officials to discuss relations and developments in the region, primarily Arab affairs in advance of the Libyan Arab Summit, KUNA reported March 2.
Russia: French Company Orders, To Launch Soyuz Rockets
March 2, 2010 1224 GMT
French Arianespace has ordered 14 Russian Soyuz carrier rockets to be launched, said company head Jean-Ives Le Gall, reported Interfax on March 2. The contract is worth about $1 billion, he said. Launch has been set for the second quarter of 2010, then another 17 Soyuz launches will follow, he said, with the number of launches increasing each year.
EU: Germany's Merkel Criticizes Europe 2000
March 2, 2010 1211 GMT
Applying STRATFOR analysis to breaking news
German Chancellor Angela Merkel has written a protest letter to EU Commission President Jose Manuel Barroso criticizing Europe's "Europe 2020" economic strategy that will be officially unveiled on March 3, euractiv reported on March 2. Europe 2020 is supposed to encourage EU member states to invest in research and development, education and boosting employment. To achieve the goals, the EU Commission has proposed robust reporting and evaluation mechanisms that would closely monitor EU member states' progress on attaining the goals. Merkel, however, criticized the plan because it links compliance with Europe's Stability and Growth Pact -- rules that limit budget deficit spending to 3 percent of gross domestic product (GDP) and general government debt to 60 percent of GDP --with attaining the Europe 2020 goals, thus giving member states an excuse to overspend in the name of achieving the EU economic strategy. Sharp criticism of the plan from Germany is a sign that Berlin is starting to put its foot down on European economic matters. Berlin does not want to give a green light to a strategy behind which EU member states would be able to justify future spending.
U.K.: Turkish PM To Visit
March 2, 2010 1145 GMT
British Prime Minister Gordon Brown said Turkish Prime Minister Recep Tayyip Erdogan will visit London in March to boost current ties and contribute to peace and security, Today's Zaman reported March 2.
Turkey: General And Prosecutor Charged
March 2, 2010 1138 GMT
A four-star Turkish general and a prosecutor were charged with involvement in an alleged plot to discredit the Turkish government and a powerful Islamic movement considered close to it, DPA reported March 2. The investigation is connected with an ongoing trial into another alleged coup plot. The indictment claims Gen. Saldiray Berk and Erzincan's chief prosecutor Ilhan Cihaner are linked to the plot and charges them with "being members of a terrorist organization," according to the state-run Anatolia Agency.
Iran: New Speed Vessel Tested
March 2, 2010 1128 GMT
Iran's Brig. Gen. Ali Fadai, deputy commander of the Iranian Revolutionary Guards navy, said the Guards Corps "successfully tested" the Tondar speed vessel in southern waters in Bushehr Province, Fars News Agency reported March 2. He said all production stages of the vessel were carried out domestically and the vessel has very high precision. The commander made the remarks at a graduation ceremony in Chalus, northern Iran.
Pakistan: Iran To Sell Natural Gas To Islamabad - Company Official
March 2, 2010 1128 GMT
The National Iranian Oil Co. will sign a contract with Pakistan on March 9-10 to sell natural gas to Islamabad, said a senior official with the company, reported Reuters, citing Fars news agency on March 2. It was not known where the signing would take place. It will allow for "executive measures" to take place regarding gas exports, Fars reported, although it did not elaborate.
Afghanistan: Czech Premier, Defense Minister Arrive
March 2, 2010 1122 GMT
The prime minister and defense minister of the Czech Republic arrived in Afghanistan, Tolo TV reported March 2. The two Czech Republic officials will meet the Afghan president and a number of other officials. Topics of discussion include ensuring security and bilateral ties.
Pakistan: Fresh Operations To Be Launched - Commander
March 2, 2010 1119 GMT
The Pakistani Frontier Corps is about to launch operations in the Orakzai tribal region and the Tirah valley to destroy militant hideouts, a military commander said March 2, reported Dawn.
Iraq: Police Chief Escapes Attempt On Life
March 2, 2010 1058 GMT
Iraq's Brig. Sarhad Qader said Col. Hussein Nemat Hawas, the director of the Dabas police station in Kirkuk, escaped an attempt on his life when an explosive device hit his motorcade near al-Rabe Bridge, Aswat al-Iraq reported March 2. The blast caused damage to one of the vehicles and knocked down an electricity pole, but no casualties were reported, the official explained.
China: Urban-Rural Disparity Continues
March 2, 2010 1004 GMT
China recorded its widest rural-urban income gap last year since the country launched its reform and opening-up policy in 1978, China Daily reported March 2. The urban per capita net income stood at 17,175 yuan last year, in contrast to 5,153 yuan in the countryside, with the urban-to-rural income ratio being 3.33:1, according to the latest figures from the National Bureau of Statistics. Song Hongyuan, director of the Research Center for the Rural Economy in the Ministry of Agriculture, said the income gap will continue to expand as the country focuses its efforts on urban sprawl, rather than rural development.
Denmark: PM To Visit South Korea
March 2, 2010 0909 GMT
The Danish prime minister will visit South Korea March 10-12 at the invitation of President Lee Myung Bak, Korea's KBS news reported March 2. Lee and Danish Prime Minister Lars Lokke Rasmussen will hold a summit to discuss ways to boost bilateral trade and cooperation in a wide range of sectors, including renewable energy development and green growth initiatives.
South Korea: Lee Invited To Japan
March 2, 2010 0902 GMT
Japan invited South Korean President Lee Myung Bak to visit in April but his aides said Lee has no plans to do so yet, Yonhap reported March 2.
China: Time Remains For Iran Nuclear Talks
March 2, 2010 0855 GMT
Chinese Foreign Ministry spokesman Qin Gang said China calls for a resolution of the Iranian nuclear issue through diplomatic means, AFP reported March 2. He stated that China believes there is still room for diplomatic efforts and that the parties concerned should step up diplomatic efforts and push for progress in dialogue and negotiations to properly resolve the Iranian nuclear issue.
Russia, Croatia: PMs To Discuss Oil And Gas
March 2, 2010 0848 GMT
Russian Prime Minister Vladimir Putin and his Croatian counterpart Jadranka Kosor will meet in Moscow to discuss issues of cooperation in the oil and gas sector, RIA Novosti reported March 2. According to the press service of the Russian government, Kosor will discuss a possibility of Croatia joining the South Stream gas pipeline project.
Pakistan: Taliban Confirm Killing Of Senior Leader
March 2, 2010 0837 GMT
Pakistani Taliban confirmed the killing of wanted militant Qari Zafar in a recent United States drone strike in North Waziristan tribal region, Xinhua reported March 2. Qari Abdul Majeed, known as Qari Zafar, leader of his own faction of Taliban (Qari Zafar group), was killed with 14 other militants in U.S. drone strike near Dargah Mandi area in North Waziristan on Feb. 24, according to a Taliban statement. He was buried at a secret location after the funeral, the statement said, adding that Mufti Abuzar Khanjari was appointed new chief of the Qari Zafar group.