February 22, 2012

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Leaks Don’t Strain Gulf State Ties, Clinton Says

MANAMA, Bahrain — The United States and Bahrain sought to project a unified front on Friday, five days after the king of Bahrain was quoted in leaked American diplomatic cables as urging Washington to stop Iran from getting nuclear weapons by whatever means necessary.

Bahrain’s foreign minister, while declining to confirm the remarks attributed to King Hamad bin Isa al-Khalifa, said the Persian Gulf kingdom had repeatedly told Iran that it should not pursue a military nuclear program. None of the king’s alleged comments, he said, contradicted Bahrain’s position.

“Every country in the Middle East has the right for nuclear power for peaceful use,” said the foreign minister, Sheik Khalid bin Ahmed al-Khalifa, after a meeting with Secretary of State Hillary Rodham Clinton.

But, he added, “when it comes to taking that power and developing it into a cycle for weapons grade, this is something that we can never accept and we can never live with in this region. We’ve said it to Iran.”

The deepening alarm among Persian Gulf states over Iran’s nuclear ambitions was not a big surprise. But the public disclosure of King Hamad’s combative comments — and similar ones by King Abdullah of Saudi Arabia — has rattled the region. Gulf leaders have preferred to voice their fears about Iran privately, avoiding a direct confrontation with the Iranian regime.

At their meeting on Friday, however, Sheik Khalifa and Mrs. Clinton took pains to dampen suggestions that the WikiLeaks disclosures had disrupted relations between the United States and Bahrain, or that they could fracture the international effort to pressure Iran.

The subject of the cable came up at a lunch King Hamad gave for Mrs. Clinton at his palace, an official briefed on the meeting said. But she did not apologize, and the two were said to have laughed off the incident.

Publicly, Mrs. Clinton repeated her regret at the disclosure of the cables and said that many of the comments in them had been taken out of context. But she insisted that the leaks had not damaged America’s relations with other countries, and said there was no debate in the Middle East or elsewhere about the need to confront Iran to prevent it from obtaining a bomb. If anything, she seemed to suggest that international solidarity had strengthened.

“Obviously, if you’re the neighbor of a country that is pursuing nuclear weapons, that is viewed in a much more threatening way if you’re a concerned country many thousands of miles away,” she said. “But the concern is the same, and we hope that Iran will respond in kind to that concern.”

On Monday, Iranian negotiators will meet with the United States and other major powers in Geneva for the first time in more than a year to discuss its nuclear program and other issues. Mrs. Clinton said she hoped it would show flexibility. Despite the steady ratcheting up of pressure on Iran, she said the United States still would be open to engagement with Tehran.

Mrs. Clinton’s comments came on the last day of a four-country swing through Central Asia and the Persian Gulf, which gave her a firsthand taste of the fallout from the WikiLeaks disclosures.

News coverage of the revelations has been more limited in the Arab world than in the West. But, as on a previous stop in Kazakhstan, Mrs. Clinton was questioned about the cables by journalists and later by students at a town-hall meeting, and she offered the same mix of regret and resolve.

On another question, about whether Mrs. Clinton planned to run for president again, she offered a noteworthy response. After saying she would not — a general demurral she has given many times in settings like this overseas — she added an unusually explicit follow-up.

“I think I’ll serve as secretary of state as my last public position, and then probably go back to advocacy work, particularly on behalf of women and children,” Mrs. Clinton said.

That would appear to rule out not only a bid for the White House in 2016, but two other recently rumored scenarios: a spot on the ticket with President Obama in 2012, replacing Vice President Joseph R. Biden Jr., or a lateral move to defense secretary after Robert M. Gates retires next year.

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Stocks End Higher Despite Disappointing November Jobs Number

(RTTNews) - Stocks jumped late in the day to end with moderate gains on Friday, getting over a disappointing November jobs report released before the start of trading. The much weaker than expected jobs growth was written off as a stumble on the way to broader economic recovery, helping to stave off heavy selling in today’s session.

The major averages moved higher late in the day, with the tech-heavy Nasdaq index rising to a three-year closing high. The Nasdaq gained 12.11 points or 0.5 percent to end at 2,591.46, the Dow advanced by 19.68 points or 0.2 percent to 11,382.09 and the S&P 500 rose by 3.18 points or 0.3 percent to 1,224.71.

For the week, the Nasdaq rose by 2.2 percent, Dow moved up by 2.6 percent and the S&P 500 surged up by 3 percent.

The day’s leading economic news came from the Labor Department, which reported that non-farm payroll employment increased by 39,000 jobs in November, well below the expected increase of 130,000 jobs.

Additionally, the report showed that the unemployment rate ticked up to 9.8 percent in November as more people returned to actively seeking jobs. Economists had forecast the unemployment rate to remain unchanged at 9.6 percent.

“The report really contradicts the other labor data we have been seeing,” said ING economist James Knightley. “As a result, today’s poor outcome may just be ‘noise’ in what is a very volatile data series.”

He added, “Nonetheless, it is the most watched U.S. data release and will not be good for risk sentiment as we head into next week during which the outcome of the vote on the Irish Budget on Tuesday has the potential to lead to renewed concern about Eurozone sovereign debt.”

Meanwhile, the day’s other economic reports were mixed. The Institute for Supply Management said its index of activity in the service sector rose to 55.0 in November, above expectations for a reading of 54.5. The number indicated sector growth for the eleventh straight month.

Also today, the Commerce Department issued a report showing that factory orders fell by 0.9 percent in October after surging up by 3.0 percent in September.

In overseas trading, stock markets across the Asia-Pacific region ended on a mixed note on Friday. Japan’s benchmark Nikkei 225 Index rose by 0.1 percent, while Hong Kong’s Hang Seng Index slid by 0.6 percent.

The major European markets also closed on opposite sides of the unchanged mark. The U.K.’s FTSE 100 Index and the German DAX Index slid by 0.4 percent and 0.1 percent, respectively, while the French CAC 40 Index inched up by 0.1 percent.

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Leaked Cables Stir Resentment and Shrugs

PARIS — In the world of diplomacy, best known for ambiguity and opacity, the WikiLeaks whistle-blowing Web site says its function is to “keep government open.” But, with the latest release of some 250,000 State Department cables, the outcome of WikiLeaks’s actions could be far more ambiguous, closing doors to United States diplomats, turning candor to reticence and leaving many people leery of baring their souls and secrets to American officials.

Updates on the reaction to the leak of diplomatic cables.

From intellectuals in Beijing to officials in the chanceries of Paris and Berlin, the reaction to days of disclosures about America’s diplomatic maneuvers in a crisis-ridden world suggested that, in the words of former French Foreign Minister Bernard Kouchner: “We will all terribly mistrust each other. That is the risk.”

A Chinese intellectual, who spoke in return for customary anonymity, said the disclosures had left those like him who had contact with United States diplomats “nervous” about the possibility of exposure and persecution by authorities who have already blocked access in China to the WikiLeaks Web site.

Hoyshar Zebari, the Iraqi foreign minister, said: “There are many jokes going around: can we speak freely with Americans? When the Americans enter a room, you shut up. You don’t speak.”

Indeed, wrote Stefan Kornelius in Germany’s center-left Süddeutsche Zeitung: “The United States had been struggling for decades to maintain its credibility on the global stage. WikiLeaks has now acted like a weapon of mass destruction on the last traces of trust.”

Yet, in a sampling of opinion by correspondents in many parts of Asia, Europe and Africa, from Moscow to Johannesburg, the responses to the WikiLeaks disclosures seemed more textured. Some analysts and government officials, particularly in France and Germany, questioned the apparent laxity of American data security. Many governments, such as those in Beijing and Berlin, insisted that leaked cables would not damage broader policy cooperation.

“We don’t want to see any disturbance to China-U.S. relations,” Hong Lei, a Chinese foreign ministry spokesman, said.

In some countries, like Pakistan, the disclosures were taken as confirmation of long-suspected cooperation by the government with an unloved ally — the United States — prompting howls of protest in newspapers that, in Islamabad as in many other parts of the world, were far more passionate in their responses than their more reticent governments.

“There has always been widespread dismay in Pakistan about unabashed United States interference in the country’s internal matters,” Baqir Sajjad Syed wrote in Dawn, the country’s leading English daily. “But the latest cache of American embassy cables leaked by WikiLeaks has laid bare the extent of the interference and involvement.”

Such remarks shows how much the WikiLeaks documents land as bombshells not only in Washington where they originated but across the globe, playing into domestic political debates. Indeed, in two quite dissimilar lands, Zimbabwe and Israel, the content of some of the cables was taken as vindication of official policy.

The bottom line in many places, though, was that diplomacy’s practitioners do not welcome the bright light of public scrutiny. “Absolute transparency is very difficult,” Mr. Kouchner said in Paris. “We need a bit of confidentiality.”

The cables reached into the world’s trouble spots and tinderboxes, raising questions about delicate relationships that Washington is seeking to nurture, particularly in Moscow, where leaked cables made disparaging references to President Dmitri A. Medvedev and Prime Minister Vladimir V. Putin.

The cables revealed an assessment of Russia as highly centralized, occasionally brutal and all but irretrievably cynical and corrupt. President Obama has been seeking a so-called “reset” of relations with Russia, but, on Friday, President Medvedev sounded an ominous note.

Diplomats “have a right to these judgments, but it’s a different story when such judgments become public, they may damage foreign policy relationships as a whole and affect the spirit of relations,” Mr. Medvedev said. “These leaks are revealing — they show the full measure of cynicism behind the assessments and judgments which prevail in the foreign policy of various nations, I mean the United States.”

Earlier, officials in Moscow had responded with a collective shrug to suggestions that the leaks might impinge on the relationship with Washington. But the leaks came a delicate moment as negotiations on arms control, missile defense and European security hang in the balance.

Some officials had sought to play down the potential dispute.

Reporting was contributed by Ellen Barry from Moscow; Katrin Bennhold and Scott Sayare from Paris; Michael Slackman and Stefan Pauly from Berlin; Edward Wong and Jonathan Ansfield from Beijing; Salman Masood from Islamabad, Pakistan, Alissa J. Rubin from Kabul, Afghanistan; Jack Healy from Baghdad; Celia W. Dugger from Johannesburg; Jeffrey Gettleman from Nairobi; Robert F. Worth from Sanaa, Yemen; and Ethan Bronner from Jerusalem.

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Yemen Helps U.S. Fight Al Qaeda, on Its Own Terms

WASHINGTON — One Obama administration security official after another was visiting to talk about terrorism, and Yemen’s redoubtable president, Ali Abdullah Saleh, seemed to be savoring his newfound leverage.

Day 6

Articles in this series will examine American diplomatic cables as a window on relations with the rest of the world in an age of war and terrorism.

Updates on the reaction to the leak of diplomatic cables.

Editors and reporters are answering questions.

The Americans are “hot-blooded and hasty when you need us,” Mr. Saleh chided one visitor, Daniel Benjamin, the State Department’s counterterrorism chief, but “cold-blooded and British when we need you.”

It was Jan. 31, just a few weeks after a young Nigerian trained and equipped in Yemen had tried to blow up an airliner as it approached Detroit. The wave of attention to Al Qaeda’s Yemen branch and its American-born propagandist, Anwar al-Awlaki, might not do much for tourism, but paradoxically it did give the Yemeni leader more influence.

Mr. Saleh said coyly that while he was “satisfied” with the military equipment the United States was supplying, he “would like to be more satisfied in the future,” according to an account of the meeting sent to Washington.

Diplomatic cables obtained by WikiLeaks and made available to several news organizations offer the most intimate view to date of the wily, irreverent and sometimes erratic Yemeni autocrat, who over the past year has become steadily more aggressive against Al Qaeda. But he appears determined to join the fight on his own terms, sometimes accommodating and other times rebuffing American requests on counterterrrorism.

The cables do not substantially alter the public picture of Mr. Saleh (pronounced SAH-leh), 68, a former military officer who has led Yemen for three decades. But with direct quotations from private meetings, the cables are like crisp color photographs of what was previously in fuzzy black and white.

Yemen, long an arid, impoverished afterthought for the United States, now draws high-level American attention far out of proportion to its size. In October, militants in Yemen sent off printer cartridges packed with explosives to Chicago addresses. The bombs were intercepted, but the plot set off a furor and prompted the latest in a series of phone calls between President Obama and his Yemeni counterpart about counterterrorism and aid.

At times, the cables show, Mr. Saleh has not hesitated to use his country’s daunting problems as a kind of threat.

“Referencing the high poverty rate and illicit arms flows into both Yemen and Somalia, Saleh concluded by saying, ‘If you don’t help, this country will become worse than Somalia,’ ” said a September 2009 cable from the American ambassador, Stephen A. Seche, describing Mr. Saleh as being in “vintage form.”

The cables portray Yemen, a land of 23 million people that is nearly the size of Texas, as a beleaguered, often baffling place, bristling with arms and riven by tribal conflict, where shoulder-launched missiles go missing and the jihad-curious arrive from all over the world. The Americans are seen coaxing the Yemenis to go after Al Qaeda, working out the rules for American missile strikes, seeking a safe way to send Yemeni prisoners home from the Guantánamo Bay prison and sizing up Americans caught in Yemeni security sweeps.

Always at the center of the diplomatic traffic is Mr. Saleh, who first appears seeking a half-million tons of wheat in a 1990 meeting with James A. Baker III, then the secretary of state. These days, his most pressing requests are for heavy weapons and military training. But he also has become more cooperative with the American campaign against Al Qaeda.

In a 2009 meeting with John O. Brennan, President Obama’s top counterterrorism adviser, Mr. Saleh offered an unusual bargain. He “insisted that Yemen’s national territory is available for unilateral CT operations by the U.S.” — but with a catch. If there were to be an attack on a Western target, Mr. Saleh said, it would not be his fault.

“I have given you an open door on terrorism,” he said, “so I am not responsible.”

In fact, despite such rhetoric, Mr. Saleh has imposed strict limits over American operations in his country, even as he has helped disguise them as his own.

When the first two American missile strikes against Qaeda camps in Yemen took place in December 2009, Mr. Saleh publicly claimed that they were Yemeni strikes to avert any anti-American backlash. Gen. David H. Petraeus flew to Yemen to thank the president, who promised to keep up the ruse. “We’ll continue saying the bombs are ours, not yours,” Mr. Saleh said, according to a cable.

A deputy prime minister, Rashad al-Alimi, had already assured the Americans that “U.S. munitions found at the sites” of strikes “could be explained away as equipment purchased from the U.S.”

Moreover, Mr. Alimi implied that Yemeni officials accepted as inevitable that the missiles had killed civilians along with militants. They were Bedouin families — “poor people selling food and supplies to the terrorists” and thus “acting in collusion with the terrorists and benefiting financially,” he said.

Still, Mr. Saleh told General Petraeus that “mistakes were made” in the killing of civilians. He agreed to the American commander’s proposal that to improve accuracy, future strikes would be carried out by American aircraft rather than by cruise missiles fired from distant ships.

Andrew W. Lehren contributed reporting from New York.

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