STRATFOR'S MORNING INTELLIGENCE BRIEF

SITUATION REPORTS - Nov. 24, 2003

1300 GMT - BRITAIN - French President Jacques Chirac and Prime Minister
Jean-Pierre Raffarin are in London for talks with British Prime Minister
Tony Blair. During a three-hour discussion session that closely follows U.S.
President George W. Bush's visit to Britain, the leaders were set to discuss
the situation in Iraq, the war on terrorism, the drafting of an EU
constitution and the establishment of an EU defense force that is
independent of NATO. The war in Iraq and the establishment of an EU defense
force have been sources of tension between the two countries.

1255 GMT - MALAYSIA - Seven Malaysian military officers are expected to
travel to Mindanao in order to assess the circumstances surrounding the
separatist rebellion. Malaysian leaders want to determine the outcome of
peace talks between the Philippine government and the Moro Islamic
Liberation Front (MILF) before deciding whether to send peacekeepers to the
region. The defense officials are due to visit following the Eid al-Fitr
festival - which marks the end of the Muslim fasting month of Ramadan -
which is expected to fall on Nov. 25.

1251 GMT - JAPAN - The Japanese government is considering whether to send
military transport aircraft and navel vessels to Iraq to deliver
humanitarian aid and supplies to U.S. forces, while still discussing a
longer-term deployment of Self Defense Forces troops, Japanese dailies
Yomiuri and Asahi reported. Officials reportedly are looking at deploying
C-130s to Kuwait to fly in humanitarian aid and supplies to U.S. forces
throughout Iraq, including Baghdad. However, according to Asahi Shimbun, a
government and ruling party official says it is difficult to envision the
deployment of Japanese forces to Iraq before the end of the year.

1247 GMT - AUSTRIA - The International Atomic Energy Agency's board of
governors is due to meet again this week to decide what actions, if any,
should be taken against Iran over its nuclear program. On Nov. 20, agency
chief Mohamed ElBaradei said that Iraq had broken its commitments under the
Non-Proliferation Treaty, but that officials in Tehran were being
cooperative and allowing for tough inspections. Russia, France, Germany and
Britain have stopped short of calling for international sanctions - a
measure advocated by the United States.

1245 GMT - GEORGIA - Georgia's interim leader, Nino Burdzhanadze, addressed
the nation on Nov. 24, promising new elections in 45 days and calling for
the restoration of order in Tbilisi - though life in the capital was
beginning to return to normal after weeks of protests that eventually forced
President Eduard Shevardnadze's resignation.

1244 GMT - TURKEY - Despite the four suicide attacks in Istanbul over the
last week, Turkey's economy will likely rebound and continue to grow at rate
of 5 percent, Bloomberg reported Nov. 24, citing economists including Mehmet
Simsek at Merrill Lynch International. The economists cite three years of
spending cuts and a two-decade low inflation rate as the reasons why Turkey'
s economy has become more resilient. However, more attacks at the peak of
the tourist reason, which accounts for roughly 15 percent of Turkey's
foreign currency revenues, could make the revitalization of Turkey's economy
more difficult to achieve. That, in turn, could increase the nation's
inflation rate and make it more difficult to repay its $191 billion national
debt. Travel warnings already have been issued by Britain and the United
States

1234 GMT - AFGHANISTAN - At least five U.S. soldiers were killed and seven
injured Nov. 23 when a U.S. helicopter crashed near the U.S. airbase in
Bagram, CENTCOM officials said Nov. 23. The soldiers were participating in
"Operation Mountain Resolve," which was launched earlier this month in
eastern Afghanistan. The cause of the crash is under investigation.

1230 GMT - HONG KONG - Jasper Tsang, the chairman of the Democratic Alliance
for the Betterment of Hong Kong (DAB), has offered his resignation after his
party lost 20 seats in District Council elections. Officials with the DAB,
Hong Kong's top pro-China party, say they will decide on Nov. 25 whether to
accept the resignation.

1217 GMT - MYANMAR - Four senior leaders of the National League for
Democracy have been released from house arrest in Myanmar after six months
in detention, party leaders say. They were arrested following clashes
between NLD members and government supporters May 30. NLD leader Aung San
Suu Kyi remains under house arrest.

************************************************************************

Geopolitical Diary: Monday, Nov. 24, 2003

Georgian President Eduard Shevardnadze resigned Sunday after several weeks
of protests over rigged elections and corruption. He was replaced by Nino
Burdzhanadze, who is speaker of the Georgian parliament. According to the
Georgian constitution, he will hold office until elections are called within
45 days. The primary agent of change was opposition leader Mikhail
Saakashvili, who carried out what he called a "velvet revolution," modeled
on Czechoslovakia's uprising.

It is interesting to note that the broker of Shevardnadze's resignation was
Russian Foreign Minister Igor Ivanov. What makes this interesting is that
the Russians are not particularly loved by the Georgians and vice versa:
Russia has accused Georgia in the past of permitting resupply for Chechen
rebels and the Georgians have accused the Russians of meddling in their
internal affairs.

Therefore, the presence of Ivanov rather than an American representative
appears to be significant. Shevardnadze was close to Washington; some said
he was a creature of the United States. Saakashvili did not reach out to
Washington to try to broker the transfer of power. He reached out to Ivanov,
who came and did his job. This immediately raises questions as to
Saakashvili's geopolitical direction. A State Department spokesman said that
the United States is following the situation closely. That is a significant
shift, since the United States was helping to manage Georgia's situation in
the past.

Georgia is significant for reasons apart from Chechnya. An oil pipeline is
being built from the Caspian to the Mediterranean, traversing Georgia.
Anything that tilts the internal balance of power in Georgia affects the
potential viability of the pipeline. Therefore, because Western investors
have put up a lot of money for that pipeline, a geopolitical tilt in Georgia
has substantial potential significance. Ivanov's presence, by itself, does
not generate a geopolitical tilt, but the fall of Shevardnadze cannot be
construed as benefiting European or American investors, while Shevardnadze's
fall cannot help but please Russian President Vladimir Putin.

There is a broad issue here. The geopolitical position of Russia at this
point cannot be acceptable to Moscow. There is an assumption, which we do
not share, that the decay of the Russian economy makes geopolitical moves
impossible. On a global scale, this may be temporarily true, but on a
regional scale -- in what the Russians call their "near abroad" -- Russia is
not without resources. The interesting question, which is not yet answered,
is whether Putin just used some of those resources to increase his influence
in Georgia and whether this move is the harbinger of increased assertiveness
in what Putin must regard as the Russian sphere of influence.

The fall of Shevardnadze is interesting in another sense. Shevardnadze was
much admired by Westerners for his role as Gorbachev's foreign minister, in
which he helped end the Cold War and -- unintentionally perhaps -- laid the
groundwork for the collapse of the Soviet Union. He was admired as an urbane
and sophisticated man dedicated to peace and stability.

In Russia, on the other hand, he was regarded as one of the men responsible
for the Soviet capitulation to the United States and the collapse of the
Soviet Union. This view was shared among those who Western businessmen have
drinks with in Moscow, but outside of this circle Shevardnadze was despised
along with his boss, Gorbachev. Within Georgia, his image as a liberal
visionary did not dominate: He was seen as a corrupt, old-style boss, who
played rough and dirty with his opponents.

That is, as they say, Georgia. The point we are making here is simply this:
The people that American businessmen and academics like and admire
frequently are not the people who are admired in their own countries. And
betting on them, in the long run, frequently backfires. The John F. Kennedy
School's thoughtful visionary frequently is just another thug or sellout in
his hometown. It probably doesn't matter all that much in Georgia, but it is
a cautionary note elsewhere in the world.







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