[RED DEMOCRATICA] CFR.org Daily Brief, June 04, 2010

 

June 4, 2010 View this newsletter as a web page on CFR's website. EXECUTIVE SUMMARY - Japan Elects Kan as Prime Minister - Israel Reconsiders Gaza Policy - Obama Postpones Indonesia, Australia Trip - Gulf Oil Pipe Capped to Contain Spill Top of the Agenda: Japan Elects Kan as Prime Minister Japan's parliament elected (WashPost) Japanese Finance Minister Naoto Kan as the country's prime minister, after Yukio Hatoyama abruptly resigned earlier this week. Kan is the country's fifth prime minister in four years and will inherit problems of debt, fiscal scandals, and tensions over the fate of the U.S. Marine base on Okinawa. The Democratic Party of Japan, which holds a parliamentary majority, overwhelmingly elected Kan. He will need to act quickly in selecting a new cabinet ahead of a critical July election. Kan, who has stressed the importance of U.S.-Japanese ties, also has to establish his position on the Futenma base. Kan differs (WSJ) from Hatoyama in three key ways: He prefers a weak yen, tax increases, and more fiscal discipline. In a news conference, Kan also stressed the importance of China to Japan, calling the relationship "equally important" as that with the United States. Analysis: In the JoongAng Daily, William Pesek says Hatoyama failed not because of his position on the Futenma base but because of a lack of creative economic policymaking. The new prime minister faces tough policy choices, but it may be more important to convince the government and public he knows "where he is going--something Hatoyama struggled to do," write Mure Dickie and Michiyo Nakamoto in the Financial Times. In this conference call, CFR's Sheila Smith discusses the implications of Hatoyama's resignation. MIDDLE EAST: Israel Reconsiders Gaza Policy Turkey said it is reviewing (BBC) its economic and defense ties with Israel following the deadly Gaza flotilla raid. Meanwhile, Israel is considering changing (WSJ) its Gaza policy amid mounting international pressure, as it emerged that an American citizen was among the dead and another was injured during the raid. Turkey's recent diplomatic strains with the United States and Israel reflect the "more assertive and self-confident" posture of a country looking to reestablish its role as a major influence in the Middle East and Central Asia, says expert F. Stephen Larrabee. Iran: Tens of thousands of Iranians gathered at a shrine in Tehran to mark the death (BBC) of revolution leader Ayatollah Khomeini, just days before the anniversary of last year's disputed elections. PACIFIC RIM: Obama Postpones Indonesia, Australia Trip U.S. President Barack Obama postponed (Reuters) this month's scheduled trip to Australia, Indonesia, and Guam, his second cancellation in just over two months to visit the countries. SOUTH AND CENTRAL ASIA: Afghanistan Wraps up Peace Conference On the final day of Afghanistan's national peace conference, delegates are hashing out (AP) details of a communiqué likely to endorse negotiations with the Taliban as a way to end Afghanistan's war. India: President Obama plans to visit India in November with aims to strengthen (WSJ) cooperation on nuclear energy and higher education. AFRICA: UN Calls for Congo Activist Death Probe UN chief Ban Ki-moon called for an independent investigation (BBC) in the Democratic Republic of Congo into the death of human rights activist Floribert Chebeya. Somalia: At least seventeen civilians were killed after Somali government forces, supported by African Union peacekeepers, launched attacks (al-Jazeera) against fighters from al-Shabaab in Mogadishu. AMERICAS: Gulf Oil Pipe Capped to Contain Spill BP placed a containment device over the ruptured Gulf of Mexico oil pipe in its latest attempt to stem (WSJ) the oil flow, as the company grapples with lawsuits, a criminal probe, and ratings downgrades. This CFR Backgrounder examines the growth of deepwater drilling and the challenges of balancing strong environmental regulation with efforts to expand U.S. domestic oil production. Canada: Canadian Prime Minister Stephen Harper, in London for talks with British Prime Minister David Cameron, said countries that didn't pay for costly bailouts of their financial sectors won't likely support (AP) the global banking tax Cameron is pushing. EUROPE: German Government Nominates Next President German Chancellor Angela Merkel tapped (AP) Governor of Lower Saxony Christian Wulff as her party's candidate to replace President Horst Koehler, who stepped down Monday after appearing to link military deployments abroad with the country's economic interests. EU: Retail trade in the eurozone fell by 1.2 percent in April, its sharpest drop in eighteen months, raising fears (FT) that the bloc's economic recovery is being hampered by scant consumer spending. TRANSNATIONAL: G20 to Confront Deficits, Anemic Growth Disagreements over how quickly to reduce inflated budget deficits and restore balance to the global economy are the main focus (MercoPress) of G20 talks this week in South Korea.

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