Monday, May 24, 2010

[RED DEMOCRATICA] CFR.org Daily News Brief, May 24, 2010

 

From the Council on Foreign Relations

May 24, 2010

View this newsletter as a web page on CFR's website.

EXECUTIVE SUMMARY

- South Korea to Cut Off Trade with North
- Iran Notifies UN of Nuclear Fuel Swap
- China Reaffirms Yuan Reform Policy
- UK Government Outlines Budget Cuts

Top of the Agenda: South Korea to Cut Off Trade with North

In a televised speech, South Korean President Lee Myung-bak said his country would cut off nearly all trade with North Korea (NYT) after the sinking of a South Korean warship, a move the Obama administration supported. U.S. President Barack Obama instructed U.S. military commanders to coordinate with South Korea to "insure readiness and deter aggression," while South Korea's military moved to resume "psychological welfare" propaganda broadcasts at the North Korean border. North Korea responded that it would destroy any propaganda loudspeakers with artillery shells. Lee spoke just as economic and security talks between China and the United States began. China has called for restraint against North Korea, but Clinton pressed Chinese leaders to take a more aggressive stance.

China has yet to decide (WashPost) whether to back the results of the international investigation that blamed North Korea for the ship's sinking or to support Lee's call for the UN Security Council to take up the issue.

Analysis:

A Korea Times editorial says South Korea should press forward with further international sanctions against the North.

South Korea's charge against North Korea is likely to result in a drawn-out effort to get the Security Council to censure Pyongyang, writes CFR's Scott Snyder.

MIDDLE EAST: Iran Notifies UN of Nuclear Fuel Swap

Iran notified the International Atomic Energy Agency about its nuclear fuel-swap deal (al-Jazeera) brokered by Turkey and Brazil in a letter that said it expects the deal "to be realized as soon as possible."

Iran's elite displayed more unity in supporting the nuclear fuel-swap deal than it did with a similar deal last year and appears intent on trying to solve the nuclear crisis, says analyst Farideh Farhi.

Israel: Israeli President Shimon Peres said Israel is more likely to conclude a peace deal (WSJ) with the Palestinians if Iran's efforts to develop a nuclear weapon are thwarted.

PACIFIC RIM: China Reaffirms Yuan Reform Policy

Chinese President Hu Jintao opened two days of talks between U.S. and Chinese officials in Beijing by repeating a pledge (WSJ) to continue reform of his country's exchange-rate regime.

The U.S.-China Strategic and Economic Dialogue will include tough issues like Iran, North Korea, and U.S. trade concerns over China's "indigenous innovation" policy, say four CFR experts.

SOUTH AND CENTRAL ASIA: India to Repair "Trust Deficit" with Pakistan

Indian Prime Minister Manmohan Singh said he is determined to reduce (WSJ) the "trust deficit" between India and Pakistan as his nation engages in a "major effort" to repair bilateral relations. Pakistan's Supreme Court is set to hear challenges (BBC) to several constitutional measures passed by parliament in April, including granting parliament the power to appoint top judges.

Afghanistan: The Taliban claimed responsibility (AP) Sunday for an attack on Kandahar Air Base, the biggest NATO base in southern Afghanistan. It was the second attack on a NATO installation in a week.

AFRICA: Ethiopia Election Calm Despite Complaints

European Union election observers in Ethiopia are investigating complaints of irregularities in Sunday's vote, but said the process was mostly peaceful (BBC).

South Africa: South African logistics group Transnet's biggest trade union ended a three-week strike (Reuters), which has curbed exports of metals, cars, fruit, and wine to Europe and Asia, as well as imports of auto parts and fuel three weeks before the World Cup begins.

AMERICAS: Drilling Projects Continue Despite Obama Halt

At least seven new permits for various types of offshore drilling and five environmental waivers have been granted since President Obama announced a moratorium on such passes (NYT).

Jamaica: Jamaica declared a state of emergency (Reuters) in two parishes of capital Kingston after shooting and firebomb attacks on police stations by suspected supporters of alleged drug lord Christopher "Dudus" Coke, who faces extradition to the United States.

EUROPE: British Government Outlines Budget Cuts

British Chancellor George Osborne outlined spending cuts (FT) for the British government in an effort to tackle the country's deficit.

EU: EU finance ministers met in Brussels Friday to find a way to share more fiscal responsibility (DeutscheWelle) and calm jittery markets.

Saving the European Union requires a plan to allow fiscally weak member countries to fail, as well as painful lifestyle changes and some loss of national sovereignty, says Daniel Gros, director of the Centre for European Policy Studies.
 

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