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Date Posted: 17:20:27 11/02/07 Fri
Author: part 1
Subject: November 2, 2007

ICLC BRIEFING INTERNATIONAL VERSION

[A7-44-5/BFG001]:BFG:L: [07/11/01][06: ]AM BRIEFING
STAND:[1.1.00/ ][3.4.10/ ][0.1.00/ ] [21: ]ECO-FIN
SUBJT:[5.1.11/ ][4.1.11/ ][2.1.11/ ] [23: ]AREA SECTOR INTEL
TOPIC:[060.000 :AM BRIEFING ] [99: ]LEGAL
SUB-T:[061.000 :AM BRIEFING, ENGLISH ]
TITLE:[BRIEFING FRIDAY NOVEMBER 2 2007 ] 1 of Pages
SYNOPSIS:
TO:ALL POINTS BY: JEFF STEINBERG/MJS/ssu
RE:MORNING BRIEFING, FRIDAY, NOVEMBER 2, 2007.
+---------------------------------------------------------------+
| |
| |
| MORNING BRIEFING |
| |
| Friday, November 2, 2007 |
| |
| |
+---------------------------------------------------------------+

- FROM HJALMAR SCHACHT TO HARRY POTTER -

In discussions on Thursday afternoon, Lyn continued to emphasize
the main theme he struck at the very successful diplomatic
luncheon on Wednesday; namely, that the global Dollar financial
system is doomed, and the final collapse cannot be postponed for
very much longer. There are uncontrollable factors at play, that
none of these idiots are taking into account. Even among the
leading City of London circles, there is a stubborn refusal to
see the reality. These Kings of Shit are headed for a very rude
awakening, breaking their wonderful illusions. There are certain
things they obviously know, on the one hand, but they are
hysterically ignoring other factors, factors that they do not
wish to know. They are operating in an imaginary universe,
governed by imaginary rules. It is as though the Anglo-Dutch
financial oligarchy has gone from Hjalmar Schacht to Harry
Potter.

Nancy Pelosi, in this larger context, is a foolish stooge
for both Cheney and the London circles who are steering him. We
are now seeing the conflict among much bigger long-term players,
with the onrushing financial crash forming the backdrop. You
have wild factional battles erupting behind the scenes in London,
with the Scottish split still unfolding. Occasionally you see
public manifestations of this, like nut-job David Cameron of the
Tory Party recently calling for Scottish MPs to be barred from
voting in the House of Commons.

In this context, the HBPA legislation is the only thing that
will work, to create the firewall, giving us the time to organize
the global bankruptcy reorganization, and launch a worldwide real
economic recovery. We are getting clear indications that, behind
the scenes, on Capitol Hill, there is an intense policy brawl
underway over the HBPA. We have got to escalate the pressure
from the states and counties and cities around the country.
This, Lyn said, is why the LPAC driver is so crucial. Our
outreach into the pores of the population, into the local and
state political institutions that are desperate for a genuine
solution, is pivotal. And that is the LPAC mission. We have got
to expand the LPAC as a driver for the overall increase in our
income--our resources and logistics in depth.

On a deeper level, the enemies of the United States, in
places like London, are out to drive the American people crazy,
to destroy the United States from within, once and for all. This
is another issue where the LPAC/LYM must take the lead. The
purpose of My Space, Face Book, the video games, is to drive
Americans crazy, and we have to take on this latest "Made in
Tavistock" cybercult/counterculture scheme.

In this same context, our expose of Al Gore is another vital
LPAC flank. If Al Gore succeeds in inserting himself into the
Hillary Clinton campaign, as he is reportedly scheming to do, he
will do the same kind of wrecking job that he did on the Clinton
Presidency in the 1990s, from his perch as Vice President. Gore
not only sabotaged the Clinton Administration's relations with
Russia. In 1996, Gore totally screwed up the reelection
campaign, and the midterm elections in 1998 were dominated by the
Gore/Lieberman inside drive to impeach President Clinton. If we
had not intervened with the Committee to Save the Presidency,
Gore and Lieberman would have likely succeeded. Our intervention
saved the Clinton Presidency. Then in 2000, Gore and his
campaign apparatus really did everything they could to get George
W. Bush into the White House. They didn't necessarily do it
intentionally, but it was in Gore's nature to act as an inside
fascist wrecking ball, even of his own campaign.

It is showdown time around the big issues: a new, just
global financial system based on the American System idea of
credit versus a plunge into a dark age; war or peace in
Southwest Asia. Lyn told the diplomats on Wednesday that we are
at a break point on this issue of war or peace. We have arrived
at the Guns of August, parallel to Aug. 1914 and Aug. 1939, when
war could have been averted, but was not.

Anyone who tries to tell you that we can postpone these big
decisions until we get a new U.S. President, is deluded. Any
speculation about the {next} Presidency is fantasy. Sometimes,
Lyn emphasized, you just have to win. World War II was like that,
and the fight we are now in, is the same thing. We have reached
a point where there is no option to just "live to fight another
day." That kind of thinking is dead man walking. The forces at
play now, are playing for keeps--for eternity. The idea that
there is an option to stall for time is a dangerous delusion.

The best example of this kind of delusional thinking is in
the preparations for the so-called Annapolis summit. Some people
are saying that a "successful" summit would just set the stage
for a final settlement under the next U.S. Administration. No
way. For one thing, the Israelis are in a real crisis,
particularly since the disastrous defeat they suffered at the
hands of Hezbollah in the July 2006 war in Lebanon. After the
Lebanon war, many sane Israelis came to realize that they have
not only lost much of their power; they have become, in the eyes
of the British oligarchy and their American henchmen, expendable.
They are being abandoned. Therefore, the Israelis themselves have
to come up with new options, to survive. This is why a peace
deal with Syria is on the table right now. Israel is looking for
new options. Being abandoned by the British, suddenly feeling
totally expendable, Israel is in an existential crisis. Israel
cannot survive without some new options, and so they will
negotiate now. Faced with this kind of existential crisis, they
are naturally turning to the Russians, with whom they have had
decades of experience. Russia can help create new options, but
it is critical to understand that all of these developments are
being shaped by this new, and rapidly changing reality.

Lyn also insisted that we really play up the BAE scandal,
which has erupted once again as the British Liberal Democratic
Party took the opportunity of this week's visit to London of
Saudi Arabia's King Abdullah, to nail Blair and the Saudis for
the mass corruption. We can count on certain factions within the
British oligarchy to help feed this fire by behaving with typical
arrogant stupidity. These are arrogant stupid bastards who, if
properly encouraged, will step all over their own toes. Look for
some fun coverage in the next EIR.

- NEWS SUMMARIES -

- LaRouche -

ILLINOIS PRESS CONFERENCE ON THE HBPA BY LPAC MARK
FAIRCHILD, and LYM TEAM was held yesterday, at the press room of
the state capital in Springfield, Illinois. (see slug)

NEW JERSEY LPAC HITS "GIULIANI DEMOCRATS" AND ADL POLITICAL
MAFIA IN BERGEN COUNTY for their attacks on endorser of
LaRouche's HBPA. A raging political battle is underway on the eve
of elections next week, with the Bergen Record being used as the
vehicle to attack State Rep. Gordon Johnson for supporting the
legislation that would close down the hedge funds and protect
homeowners. LPAC has a leaflet and press release exposing the
dirty operation behind this effort to stop the HBPA and
LaRouche's policy. (mjs)

MISSOURI HOUSE RESOLUTION FOR CONGRESS TO ENACT HBPA text,
drafted by Rep. Juanita Head Walton (District 81, St. Louis), is
ready for action when the state legislature convenes in January,
2008. (Will be available on the LPAC website soon).

"PROTECT THE SPACE BETWEEN YOUR EARS: GET OFF MYSPACE AND
FACEBOOK before your brain turns to mush." The LaRouche Show on
Nov. 3 will feature an exposure and ridicule of MySpace,
Facebook, and the effort to destroy the youth through Virtual
Reality. Guests, LYM--Brent Bedford and Oyang Teng; Host: Harley
Schlanger.

Jacques Cheminade Interviewed On Montreal Radio Show. (see
slug)

DENMARK'S ELECTION CAMPAIGN IS OFF TO A BANG-UP START, with
a campaign website at http://www.sive.dk/ and a video diary at
YouTube at http://www.youtube.com/mayagudrun. More in Euro Ops.

AMELIA BOYNTON ROBINSON ADDRESSED A BERLIN ASSOCIATION OF
AFRICAN REFUGEES Nov. 1, and as usual, swept them off their feet.
[see Euro Ops]

- Economics -

FEDERAL RESERVE PUMPED $41 billion INTO U.S. BANKING SYSTEM
YESTERDAY. (See slug)

Cerberus/Chrysler Cuts 12,000 more Jobs, Eliminating 30% of
its Workforce in a year. (see slug)

WORLD CURRENCIES, MARKETS, IN TURMOIL. On Oct. 31, the same
day as the U.S. Fed Open Market Committee lowered interest rates,
major interventions took place in Asia, to damp the rise of other
currencies against the dollar, including in India, the
Philippines and elsewhere. In Hong Kong, the Hong Kong Monetary
Authority intervened four times Oct. 31, and twice last week, to
buy up dollars, for a total of $1 billion of interventions, to
attempt to keep the Hong Kong dollar in a trading band with that
of the U.S. dollar.

MAJOR NAME BANKS CONTINUE ROUNDS OF HUGE WRITE-OFFS, LOSSES.
(See slug).

Twin Drop in U.S. ISM Manufacturing index and consumer
spending (see slug)

`Sun Belt' and `Rust Belt' states account for largest number
of home foreclosures (see slug)


- United States -

Senator Hagel (R-NE) Urges Bush to Open Direct, and
Unconditional Talks with Iran. (see slug)

Congressman Dennis Kucinich (D-OH) says it's time for
Congress to Impeach Dick Cheney. (see slug)

New Polls Show that the American Population is Furious at
the Democrats. (see slug)

Senate GOP Leader McConnell Earmarked Funds for BAE. (see
slug)

The Nomination of Judge Michael Mukasey to Become Attorney
General is "At Risk," Specter Says. (see slug)

Senate Democrats Split Over Immunity for Cheney's Wiretap
Program. (see slug)

U.S. Foreign Service Members Revolt at Mandatory Assignments
to Iraq. (see slug)

- West Europe -

French Socialist Party Leader Segolene Royale Praises
Lessons of Argentina Economic Success. (see slug)

Was Sarkozy Trained By The Us State Department? (see slug)

German Railway Workers Shift to a Anti-Railroad
Privatization Stance. (see slug)

Litvinenko was a Paid Agent of Britain's MI6 Intelligence
Service. (see slug)

- Ibero-America -

Free-market Looting Threatens Central Mexican Electricity
Infrastructure (see slug)

Mexico faced with Demographic Crisis, as most productive
young workers leave the country. (see slug)

On October 31 Ecuador's President Correa Named Bank of the
South Negotiator to Coordinate Ecuador's Economic Policy.(see
slug)

- East Europe -

Baltic Republics Reaffirm Joint Nuclear Power Project. (see
slug)

- Southwest Asia -

Regional Powers Move to Get Kurdish Crisis Under Control
(see slug)

Arabic Gulf States Propose Joint Uranium Enrichment With
Iran. (see slug.)

Arabian Gulf States Plan Common Railway Grid (see slug)

- Other Asia -

Party Congress Lays Out Program for "Hu's New Deal." (see
slug)

Pakistan On The Brink of U.S. Attacks on its northwest
provinces where Al Qaeda is flourishing. (mjs)

ECO-FIN

FEDERAL RESERVE INJECTS $41 BILLION INTO U.S. BANKING SYSTEM

Nov. 1, 2007 (LPAC)--The Federal Reserve, through three separate
interventions over the course of the day, pumped a combined $41
billion in Federal funds short-term liquidity into the U.S.
banking system Nov. 1. Of this amount, three-quarters of the
Federal funds were issued against the security of housing- and
mortgage-related paper, part of the Fed's five-month siege to
liquefy the impaired mortgage market. This tactic has achieved no
success in its ostensible objective; however, it is setting the
ground for a Weimar hyperinflation.
While the Fed injected $41 billion of funds, the bids by
banks for funds from the Federal Reserve totalled $262.45
billion; the issue was oversubscribed more than six times.
To this must be added the $163 billion that the Federal Home
Loan Bank system (which is a government-sponsored enterprise) was
compelled to lend, during August and September, to deeply
troubled banks. As an end-run from borrowing from the Federal
Reserve, which happens under the public glare, the banks are
pillaging the lending authority of the little-known FHLB. Had the
banks borrowed one- to three-month money in the amount of $163
billion from the Federal Reserve's discount window, as they did
indeed from the FHLB, there would have been a public hue and cry.
[ref]

CERBERUS/CHRYSLER CUTS 12,000 MORE, ELIMINATING 30% OF WORKFORCE
IN A YEAR

Nov. 1, 2007 (LPAC)--Cerberus-owned Chrysler Corporation, waiting
only days after its unions were compelled to accept a new
contract with substantial wage and benefit cuts, announced the
elimination of 8,500-10,000 more production jobs, and a total cut
of up to 12,000 blue- and white-collar employees. The company
started five plants in Toledo, Ohio, Detroit and Sterling
Heights, Michigan, Belvidere, Illinois, and Brampton, Ontario on
the road to closure, cutting out a shift at each one.
Chrysler closed six plants, eliminating 5,000 production
jobs, in 2002-03. Now it has eliminated 11,000 more production
employees since February of this year, and announced this
additional 8,500-10,000 cut. By early in 2008, the company will
have cut 20,000, or approximately 30%, of its entire production
workforce in little more than a year.
That is the disastrous rate of shrinkage of the auto
industry in the United States, the reservoir of the nation's
primary capacity for machine-tooling and innovative industrial
design.
The U.S. auto industry, including car and light truck
production and auto parts/supply companies, has already (through
September) lost 25% of its employment, 335,000 jobs, since the
year 2000, and prior to the job cuts coming now. This is the
destruction of the last and largest remaining area of "middle
class" productive employment in the country.
Chrysler is slashing its productive capacity with sales
continuing to fall; but the mortgage meltdown and financial
collapse are hitting all sales. The entire auto industry's sales
in the United States are down 2.7% for the first ten months of
this year, the third straight year of falling sales, and heading
for a yearly sales total below 16 million for the first time
since 1995. [pbg]

BRITS THROW BEAR STEARNS CEO UNDER THE BUS

Nov. 1, 2007 (LPAC)--The {Wall Street Journal}, now run by
British operative Rupert Murdoch, today levelled a page-one blast
at Bear Stearns chief executive officer James Cayne, basically
characterizing him as a Nero who fiddled while his company
burned. The article portrays Cayne as off playing bridge and
golf, and smoking dope, during the Bear Stearns hedge fund crisis
in July. The issue here is not Cayne, but rather what appears to
be a British power play at a major U.S.-domiciled investment
bank.
In September, a Bahamas-based British subject named Joe
Lewis bought an $860 million stake in Bear Stearns, making him
the investment bank's single largest stockholder. Lewis made his
fortune as part of the 1992 Anglo-American bankers' raid on the
European exchange rate system, where some say he made even more
money than George Soros. Bear Stearns itself has a sordid
history, with deep connections to the casino business, including
being the investment bank for Meyer Lansky's Resorts
International, which itself grew out of a British Intelligence
operation run from the Bahamas. Now we have Rupert Murdoch, the
British imperial propaganda specialist, using his recently
acquired {Wall Street Journal} in what appears to be an effort to
oust or pressure Cayne. This occurs at the same time that Merrill
Lynch head Stan O'Neal has been dumped; heading the committee to
select O'Neal's replacement is Merrill Lynch director Alberto
Cribiore, an Italian banker who was developed in the 1970s under
the wing of Lazard Synarcist Andre Meyer. The Brits are on the
move. [jph]

PUNY $2 BILLION BRIDGE REPAIR BILL INTRODUCED IN CONGRESS BY
MINNESOTA REP. JAMES OBERSTAR

Nov. 1, 2007 (LPAC) -- Rep. James Oberstar (D-MN) on Oct. 30,
introduced "The National Highway Bridge Inspection and
Reconstruction Act," in the House of Representatives, to
authorize $2 billion through 2009, to repair the nation's worst
bridges. He acted in response to the I-35W Mississippi River
bridge collapse in his home state this past Summer, which killed
13 people. Though Oberstar in the past has spoken of the need for
Federal infrastructure programs funded through a capital budget
process, outside the constrictions of debt and operating
expenses, his proposal is within the usual constraints and small.
The $2 billion is puny in light of the scale of need to
remedy the outmoded and dangerous bridges in the country.
Oberstar's own press release noted that, "The American Society of
Civil Engineers estimates that it would cost over $188 billion to
repair the nation's 73,784 structurally-deficient bridges."
Referring to the dismal state of inaction in Congress, Oberstar
lamented of his new draft law, "This is not the bill that I had
hoped to introduce, but fixing bridges is more important than
fighting with the White House and the Senate. Let's pass this
bill and get to work on the problem." (mgm)

GERMAN RAIL WORKERS SHIFT TO ANTI-RR PRIVATIZATION STANCE

Nov. 1, 2007- (LPAC) -- The German railway workers union Transnet
has warned the Christian Democrats not to continue rejecting the
"people's bond" proposal of the Social Democrats, otherwise
Transnet will stop supporting the government's railway
privatization plan altogether, and instead re-join those who
insist that railways remain in public hands.
This sudden change of views on the part of Transnet can be
understood as a reflex reaction, to join in the shift of
sentiments in the nation against privatization. This reflex is
also visible in the recent Social Democrats' vote against the
government's plan. The Transnet shift is yet another big slap in
the face to the increasingly unpopular Transport Minister
Wolfgang Tiefensee (SPD), who just a week ago reiterated his line
that "[W]hen thinking about railway privatization, I rather think
of big financial investors than small bond-holders." (rap)

MARKETS RATTLED BY BIG BANKING LOSSES

Nov. 1 (LPAC)--Big losses by Citigroup, Credit-Suisse, Bank of
America, and Exxon-Mobil rattled financial markets today,
plunging the Dow Jones by more than 260 points at its opening,
and closing with a loss of 362 points.
Against the backdrop of rising oil prices, Exxon-Mobil's
quarterly profits dropped 10% compared to the same period last
year, which company officials attributed to higher production and
exploration costs.
Citigroup reported $6.5 billion in writedowns and losses for
the third quarter, which will force it to cut its dividend, or
sell assets in order to raise $30 billion to shore up its
capital. Its shares have been downgraded to the lowest level in
four years. Analysts are pointing to Citigroup's exposure to the
subprime mortgage crisis as the major reason for its losses.
The same is true of Credit-Suisse, whose net income fell by
31% for the third quarter. Its CEO Brady Dougan cited "extreme
market conditions" sparked by record U.S. home foreclosures.
Peter Horne, an analyst at the London-based Helvea SA, told
Bloomberg news service "We've been led to expect horrors in
investment banking and we weren't disappointed."
Bringing up the rear, the {Wall Street Journal} today
depicts the woes of Bear Stearns, charging that during the height
of its crisis last summer, when two of its hedge funds went
under, CEO James Cayne was allegedly goofing off on the golf
course, playing bridge, and smoking pot. [crr]

`SUN BELT' AND `RUST BELT' ACCOUNT FOR MAJORITY OF FORECLOSURES

Nov. 1, 2007 (LPAC)--Of the 635,159 foreclosure filings in the
third quarter -- one for every 196 households, on 446,726
properties -- those in the `Sun Belt' and in the
formerly-industrialized `Rust Belt' states, continue to account
for the largest number.
The ten states with the highest foreclosure rates included
Michigan (43,768 filings on 29,655 properties), Ohio (46,818
filings on 35,242 properties, and Indiana. Michigan's filings
represented a 76.8% increase over 2006. Wayne County alone had
one foreclosure for every 33 households. Bloomberg points out
that Michigan and Ohio are the states where the auto industry
fired more than 50,000 workers over the past 10 years.
The total number of filings nationwide represented a 30%
increase over the previous quarter, and almost double the same
period of 2006.
Nevada, with one foreclosure for every 61 households, had
the highest rate, rising 23% from the second quarter and tripling
the figure from a year ago. California came in second, with one
foreclosure for every 88 households (148,147 filines on 94,772
properties), up 36% from the second quarter and a four-fold
increase from one year ago. Florida's third-quarter rate, one for
every 95 households, was a whopping 50% increase over the second
quarter.
Nationwide, there is a 10-month supply of unsold houses, the
highest figure in eight years. [crr]

TWIN DROP IN ISM MANUFACTURING INDEX AND CONSUMER SPENDING

Nov. 1, 2007 (LPAC)--Reflecting the U.S. economy's continuing
disintegration, the Institute for Supply Management's factory
index dropped to 50.9 today, down from 52 in September, and the
lowest in seven months.
The decline is attributed to the lower demand for
construction equipment, furniture and appliances, as a result of
the housing market collapse and credit crunch.
At the same time, consumer spending rose by 0.3% in
September, below the 0.4% that had been forecast. [crr]

UNITED STATES/CANADA

LAROUCHE PAC MAKES WAVES IN SPRINGFIELD, ILLINOIS WITH HBPA

Nov. 1, 2007 (LPAC)--Mark Fairchild, the LaRouche Democrat who
won the 1986 statewide Democratic primary election in Illinois,
and created a LaRouche "revolution" then, held a highly
successful press conference in Springfield, IL today, on the
question of the urgent need for LaRouche's "firewall" against
economic incineration, the Homeowners and Bank Protection Act. It
was Fairchild's second event this week in Illinois. Held in the
conference room of the Illinois State House, the press conference
by Fairchild, who was accompanied by organizers of the LaRouche
Youth Movement, was attended by five media -- two television
stations, two radio stations, and one newspaper.
There were several questions about LaRouche, to which Mark
developed Lyn's recent worldwide interventions, his trip to
Russia, and the developments around the Bering Strait tunnel
project, as well as Lyn's providing the only solution to the
mortgage crisis, and global financial breakdown.
One radio station wanted to know, "why focus on the state
level" and not Congress. It is the clamor from the states,
cities, and local areas that will break the logjam in Congress,
Mark explained. A resolution was introduced in the Illinois
legislature on Oct. 5 (H.R. 0761), calling on Congress to take
emergency action for a Homeowners and Bank Protection Act.
To the question: (Paraphrased) You could have been Lt.
Governor of Illinois. How does it feel to be here 21 years later
in the state house? Mark answered that Adlai Stevenson committed
a tragic act -- damaged his political career, the Democratic
Party and the people. This is the tragic mistake Pelosi is doing
today -- being swayed AWAY from FDR's policies. And because of
that, Congress has gone from 70% support from the population to
less than 11%! (mjs)

JACQUES CHEMINADE ON MONTREAL RADIO SHOW

MONTREAL, Nov. 1, 2007 (EIRNS)--As a guest speaker of the
broadcast Noosphere, a student radio show at Montreal University,
Jacques Cheminade was interviewed about Lyndon LaRouche's
policies internationally. "We rediscover the spirit of the times
when Charles de Gaulle said, "Vive Quebec Libre" and make sure
this time that "not only Quebec, but all Canadians become free of
the Queen of England." Asked about Gore's visit in France,
Cheminade said that Sarkozy and Gore are both fakers using
rhetoric and "moral" issues to impose oligarchical financial
racketeering schemes.
Jacques counterposed this with LaRouche's Eurasian
Land-Bridge policies, which are not only a war-avoidance policy
of mutual cooperation, but also a cultural paradigm shift.
Talking about how MySpace and Facebook evacuate people's acute
sense of reality, Cheminade told the listeners that "In Canada
people have some experience with characters such as Rupert
Murdoch" and his policies of brainwashing. For the next time, the
perspective of a controversial debate was agreed. (kav)

U.S. FOREIGN SERVICE MEMBERS REVOLT AT MANDATORY ASSIGNMENTS TO
IRAQ

Nov. 1, 2007 (LPAC)--Days after the Secretary of State Rice
announced her Department would be making mandatory assignments of
career Foreign Service personnel to staff the Embassy in Baghdad,
or to serve on reconstruction teams in some of Iraq's most
volatile provinces, resistance to that policy broke out yesterday
at an hour-long "town hall" event at the Department. A Department
spokesman was quoted by the {New York Times}, that "very strongly
held views" were expressed. One Foreign Service officer who once
worked as a political adviser with NATO forces, AP reported,
characterized such assignments as a "potential death sentence."
Secy. Rice's Iraq deputy David Satterfield maintained that large
numbers of State Department personnel have signed up for duty at
such posts, but the {Times} points out that the new order
indicates a fundamental problem: many of those who have signed up
are entry-level types, not experienced diplomats. (grc)

HAGEL URGES BUSH TO OPEN DIRECT, UNCONDITIONAL TALKS WITH IRAN

Nov. 1, 2007 (LPAC)--In a private letter to President Bush, Sen.
Chuck Hagel (R-NE) urged him to pursue "direct, unconditional and
comprehensive talks with the Government of Iran." The letter from
Hagel was orginally sent to President Bush on Oct. 17, but was
recently obtained by The Washington Note and posted on its
website.
Hagel warns in his letter that the Administration's
diplomatic strategy is stalled, and "unless there is a strategic
shift form the current situation, I believe we will find
ourselves in a dangerous and increasingly isolated position in
the coming months" -- and he adds that he doesn't see how the
actions now being taken will produce the results being sought.
Encouraging President Bush to offer a completely different
course for US-Iran relations, of direct and unconditional talks,
Hagel says: "An approach such as this would strengthen our
ability across the board to deal with Iran.... It could create a
historic new dynamic in US-Iran relations, in part forcing the
Iranians to react to the possibility of better relations with the
West. We should be prepared that any dialogue process with Iran
will take time, and we should continue all efforts, as you have,
to engage Iran from a position of strength."
"We should not wait to consider the option of bilateral
talks until all other diplomatic options are exhausted," Hagel
warns the President. "At that point, it could well be too late."
Steve Clemons, proprietor of The Washington Note, says that
he has also learned that the Hagel letter made its way to Adm.
William Fallon, the head of the U.S. Central Command, and that
Fallon has let Hagel know that he concurs with the importance of
considering the options which Hagel has presented. (gbm)

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