STRATFOR'S MORNING INTELLIGENCE BRIEF
SITUATION REPORTS - Dec. 5, 2003

1300 GMT - SUDAN - Sudanese Vice President Ali Osman Taha reached a peace
deal in the Saudi city of Jeddah on Dec. 4 with Mohammed Osman al-Mirghani
of the Democratic Unionist party, a rebel group in Sudan's north.
Representatives of the country's southern rebels arrive in the capital of
Khartoum on Dec. 5.

1255 GMT - YEMEN - The Yemeni interrogation of Mohamed Hamdi al Ahdal, also
known as Abu Issam al Maki, has revealed that al Qaeda has received
financial support from a number of prominent people on the Arabian
Peninsula, according to sources quoted by Middle East Online. "Ahdal
provided important information to Yemeni investigators which implicates
important personalities in Arab states regarding financial dealings with
Ahdal, who is considered by the Yemeni authorities as the central figure in
al Qaeda in Yemen," the source said, adding that the Saudi-born al Ahdal "is
behind the terrorist attack on the USS Cole in October 2000 and the French
oil tanker Limburg in October of last year."

1250 GMT - SYRIA - Syria is refusing to repatriate Iraqi funds deposited in
the state-owned Commercial Bank of Syria -- part of the money that former
President Saddam Hussein hid between the 1991 and 2003 wars. Syria wants to
use the money to settle Iraqi debts before returning anything to the
developing Iraqi government, while the U.S. wants it returned immediately
and in full. A recent U.N. resolution explicitly holds all Iraqi government
debts in abeyance until 2008. The exact amount of funds held in Syria is the
topic of some dispute with estimates ranging from $250 million to $3
billion.

1243 GMT - AUSTRALIA - The Australian parliament approved a series of
measures on Dec. 5 increasing the Australian Security Intelligence
Organization's ability to interrogate suspected terrorists. The ASIO will be
able to confiscate passports, penalize individuals for disclosing
information about interrogations and question suspects who need an
interpreter for at least 48 hours. The Labor Party, currently in opposition
to the Liberal/National coalition government, voted for the measures. Labor
Sen. John Faulkner said the changes "don't change the framework at all of
the (original) legislation. They don't extend the maximum period of
detention for questioning. They don't limit access to legal advice or change
the very strong safeguards in this legislation that this Senate insisted on
when the original ASIO bill was passed."

1237 GMT - RUSSIA - Russian inflation was 1.0 percent for November,
according to a Dec. 5 report from the State Statistics Committee. Inflation
for the year to date was 10.8 percent, down from 13.3 percent for the same
period in 2002, putting the country on target to succeed in its 12 percent
annual inflation forecast.

1230 GMT - IRAQ - An attack on a three-vehicle U.S. convoy near a mosque in
east Baghdad on Dec. 5 killed four Iraqis and one U.S. soldier. The attack
appears to have been a roadside bomb detonated near the al Samarrai mosque
as the convoy passed. Approximately 20 bystanders were injured in the blast.

1226 GMT - The Hague - Gen. Stanislav Galic, a Bosnian Serb general
convicted by the International Criminal Tribunal of war crimes, was
sentenced to 20 years in prison for his role in the siege of Sarajevo. Galic
also was found guilty of murder and inflicting terror on civilians.

1212 GMT - RUSSIA - An apparent suicide attack derailed a Russian train
traveling between the southern cities of Mineralnye Vody and Kislovodsk --
slightly more than 100 miles from the Chechen border -- on Dec. 5 at 0440
GMT. The blast occurred in the train's second carriage and 36 people have
been confirmed killed and another 150 injured, most requiring
hospitalization. The attack was labeled a "terrorist act" and Interior
Minister Boris Gryzlov vowed to track down the perpetrators. "The ground
will burn under their feet. These animals will never be able to feel safe,"
Gryzlov said. An FSB security spokesman told Itar-Tass, "Next to the body of
the suicide bomber a bag was found which, to all appearances, contained the
explosive device which went off in the commuter train. The type of the
explosive device has been identified; its main component was a plastic-based
explosive. The power of the blast was equivalent to between six and 10
kilograms of TNT." Russian President Vladimir Putin was in Rostov on Don
when the explosion occurred. Elections for the Russian Duma are to be held
Dec. 7.

1204 GMT - NIGERIA - Queen Elizabeth II met with the leaders of 52 states in
Abuja, Nigeria on Dec. 5 to begin a Commonwealth summit. Pakistan and
Zimbabwe have been barred from attending.

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

Geopolitical Diary: Friday, Dec. 5, 2003

U.S. Secretary of State Colin Powell called on NATO on Thursday to take a
role in Iraq. Speaking at a meeting of NATO foreign ministers in Brussels,
Powell said, "We urge the alliance to examine how it might do more to
support peace and stability in Iraq, which every leader has acknowledged is
critical to all of us." Powell went on to say, "What strikes me today is
that, as we discussed the possibility of NATO taking an enhanced role in
Iraq, not a single member spoke against it or talked about reasons not to do
it." That overstated it a bit, since German Foreign Minister Joschka Fischer
reiterated that Germany would not send troops to Iraq. But it is true in the
sense that no one, including Germany or France, rejected out of hand a
formal role for NATO -- independent of what the role of any particular
nation might be.

There will be 26 members of NATO next year. Eighteen of them have forces
deployed in Iraq, although some of the contingents are extremely small. The
issue the United States has put on the table is less about increased forces
in Iraq, although Washington would welcome those. The issue is, rather,
whether NATO is prepared to back the American move in Iraq, at least
formally and only after the fact. The American move is more complicated and
significant than it appears.

On the surface, this would appear to be a chastened United States asking for
help from NATO, having learned a hard lesson in Iraq. There may be some of
that -- and it is certainly how the media are going to play it. But the fact
is that since the United States is not likely to get strategically
significant support and the appearance of being chastened is the last thing
that the Bush administration wants to give -- especially when the returns
are going to be as slim as these -- there is more going on.

During the same meeting, another issue came up. British, French and German
leaders are discussing the creation of a "planning cell," which is seen in
Washington as the nucleus of a joint European command structure. There are
several reasons why the United States doesn't want to see this. First, if a
joint European force emerges, Europe will go from being a strange economic
formation to a geopolitical reality. Europe currently can be manipulated by
the United States quite effectively under current circumstances. Washington
doesn't want this to change.

Second, even if this doesn't evolve beyond an embryonic planning system, the
United States would see its special relationship with Britain undermined if
it had a set of prepackaged commitments to the continent that could pre-empt
its relationship with the United States. Bush understands British Prime
Minister Tony Blair's political reasons for this gesture, but he is very
uneasy about what this planning cell would become in the hands of Blair's
successor.

Third, and most important, the creation of a European force would raise the
question of how NATO is supposed to work and whether it can work at all.
Each NATO member has a pre-emptive relationship with the alliance, before
its obligations to any other multilateral force. If this entity were
created, European countries would be faced with the question as to which
entity took precedent. It is not clear how NATO as an entity would function.
There could be a U.S.-European alliance, but NATO as an institution would no
longer be relevant.

U.S. defense planners have been asking serious questions about the value of
NATO for the United States since the end of the Cold War. With the current
war soaking up U.S. troops, the issue is even more intense -- not only in
terms of force structure but also in terms of bandwidth. NATO takes a lot of
attention, and its use is far from clear. There are serious people -- both
within and outside of the administration -- who think that NATO has outlived
its usefulness to the United States and, frankly, to Europeans as well.

Washington has therefore put a question on the table to NATO. The United
States is involved in a major war. The hard fighting is over, but there are
serious problems in occupying, stabilizing and administering the country. Is
NATO prepared to formally involve itself in Iraq, particularly after
sovereignty has been returned to the Iraqis? If the answer is no -- and NATO
runs by consensus, so all eyes will be on France and Germany -- then the
second question will be this: Given that Europe is moving toward some sort
of unified command on its own, and since NATO is unprepared to help the
United States in Iraq, why not simply let the alliance die a natural death?

Most Europeans do not want to see NATO dissolve, because they see the U.S.
presence in Europe as a valuable counterweight to the Franco-German core of
Europe. The French and German position on the subject has become murky.
Since either country can block NATO action, they can control what NATO does
or doesn't do. In effect, Powell was telling the Europeans that the future
of NATO is at stake, and the United States is prepared to go in whatever
directions the Europeans choose. But NATO and European leaders must very
soon make some fundamental decisions on what they want to do with NATO.






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