Germany's Schroeder urges diplomacy over Iran's nuclear effort, Israel's Peres hopeful for new era in Middle East

JONATHAN FOWLER, Associated Press Writer
AP Worldstream
01-28-2005
Dateline: DAVOS, Switzerland
German Chancellor Gerhard Schroeder urged diplomacy in the standoff with Iran over nuclear enrichment and Israel's Shimon Peres said Middle East peace talks could enter a "new age," as they addressed the World Economic Forum Friday.

Speaking to hundreds of people at the annual meeting of top business executives and politicians, Schroeder _ who steadfastly opposed the U.S.-led invasion of Iraq _ said that it was imperative Iran not develop nuclear weapons.

"This is a hotbed region already," he said. "The last thing we need is another military conflict."

The United States and several other countries fear Iran is seeking to enrich uranium not to the low level needed to generate power but to weapons grade that forms the core of nuclear warheads.

Iran publicly insists it only seeks to make low-grade enriched uranium for nuclear fuel.

"We are most decidedly in favor of the fact that Iran completely gives up use of military power forever, if at all possible, but this is a target that has to be achieved through diplomatic means," Schroeder said to applause.

Together with France and Britain, Germany has spearheaded diplomatic efforts to persuade Tehran to end nuclear activities that could be used to make weapons _ an aim that Iran denies. Washington has been less patient, pushing for the matter to be referred to the U.N. Security Council, and has refused to rule out military strikes.

Ties between Berlin and Washington were strained by Schroeder's vehement opposition to the U.S.-led war in Iraq in 2003, but the two governments have since moved to repair relations.

"I'm not taking anything away from my original position," said Schroeder. "But the question about what one thought about the war in Iraq is history."

"We have a vested interest in the democratization and stabilization of Iraq," similar to countries that joined the U.S.-led coalition that ousted Saddam Hussein, he said.

Germany currently is training Iraqi security forces in the United Arab Emirates, he noted. German authorities also helped broker a deal among major creditors to write off as much as 80 percent of Iraq's debt, capping a U.S. push for debt forgiveness.

Germany also is a key player in efforts to stabilize Afghanistan and the Balkans, Schroeder said.

"Reproaching Germans for not doing their job _ that's wrong," Schroeder said.

Israeli Vice Premier Shimon Peres said he was encouraged by the election of Palestinian leader Mahmoud Abbas in "a convincing democratic way," and welcomed a fresh approach to the Middle East conflict by Abbas and Israeli Prime Minister Ariel Sharon.

"I feel that we are again approaching a new age," Peres said in a panel discussion between Israeli and Palestinian leaders.

He noted he had attended 10 previous annual meetings in Davos, high in the Swiss Alps, many of which were devoted to Israeli-Palestinian peace efforts.

"The magic has returned to the mountain," Peres said.

In 1994 he negotiated with the late Palestinian leader Yasser in round-the-clock talks that both sides hailed as inspired by the mountain, a reference to Thomas Mann's novel, "The Magic Mountain," which is set in Davos.

Much of this year's forum is focusing on ways to cut poverty.

Schroeder said he favored proposals made by British Prime Minister Tony Blair to set a timetable for raising development aid and for more countries to join the "International Finance Facility," which is designed to double aid to Africa from US$50 billion (euro38 billion) a year.

Schroeder also addressed separate steps outlined by French President Jacques Chirac, who earlier said governments should raise billions of dollars through taxes on international financial transactions, plane tickets or fuel used by airliners and oceangoing vessels.

"We should look at financial flows in which there's nothing but hot air and speculation," said Schroeder. "We should consider a tax on purely speculative financial transaction."

He also slammed "speculation" on oil prices.

"Poor countries have been heavily affected" by record prices, he said. "Those who produce oil should show responsibility for the lack of development in poor countries because of these prices."

Later Friday Ukraine's new President Viktor Yushchenko is set to pitch his views at an evening session, alongside his Polish counterpart Aleksander Kwasniewski, a leading advocate of closer Ukrainian ties with the West. Brazilian President Luiz Inacio Lula da Silva also is scheduled to address the forum.

Copyright 2005, AP News All Rights Reserved
Germany's Schroeder urges diplomacy over Iran's nuclear effort, Israel's Peres hopeful for new era in Middle EastJONATHAN FOWLER, Associated Press Writer
AP Worldstream
01-28-2005
Dateline: DAVOS, Switzerland
German Chancellor Gerhard Schroeder urged diplomacy in the standoff with Iran over nuclear enrichment and Israel's Shimon Peres said Middle East peace talks could enter a "new age," as they addressed the World Economic Forum Friday.

Speaking to hundreds of people at the annual meeting of top business executives and politicians, Schroeder _ who steadfastly opposed the U.S.-led invasion of Iraq _ said that it was imperative Iran not develop nuclear weapons.

"This is a hotbed region already," he said. "The last thing we need is another military conflict."

The United States and several other countries fear Iran is seeking to enrich uranium not to the low level needed to generate power but to weapons grade that forms the core of nuclear warheads.

Iran publicly insists it only seeks to make low-grade enriched uranium for nuclear fuel.

"We are most decidedly in favor of the fact that Iran completely gives up use of military power forever, if at all possible, but this is a target that has to be achieved through diplomatic means," Schroeder said to applause.

Together with France and Britain, Germany has spearheaded diplomatic efforts to persuade Tehran to end nuclear activities that could be used to make weapons _ an aim that Iran denies. Washington has been less patient, pushing for the matter to be referred to the U.N. Security Council, and has refused to rule out military strikes.

Ties between Berlin and Washington were strained by Schroeder's vehement opposition to the U.S.-led war in Iraq in 2003, but the two governments have since moved to repair relations.

"I'm not taking anything away from my original position," said Schroeder. "But the question about what one thought about the war in Iraq is history."

"We have a vested interest in the democratization and stabilization of Iraq," similar to countries that joined the U.S.-led coalition that ousted Saddam Hussein, he said.

Germany currently is training Iraqi security forces in the United Arab Emirates, he noted. German authorities also helped broker a deal among major creditors to write off as much as 80 percent of Iraq's debt, capping a U.S. push for debt forgiveness.

Germany also is a key player in efforts to stabilize Afghanistan and the Balkans, Schroeder said.

"Reproaching Germans for not doing their job _ that's wrong," Schroeder said.

Israeli Vice Premier Shimon Peres said he was encouraged by the election of Palestinian leader Mahmoud Abbas in "a convincing democratic way," and welcomed a fresh approach to the Middle East conflict by Abbas and Israeli Prime Minister Ariel Sharon.

"I feel that we are again approaching a new age," Peres said in a panel discussion between Israeli and Palestinian leaders.

He noted he had attended 10 previous annual meetings in Davos, high in the Swiss Alps, many of which were devoted to Israeli-Palestinian peace efforts.

"The magic has returned to the mountain," Peres said.

In 1994 he negotiated with the late Palestinian leader Yasser in round-the-clock talks that both sides hailed as inspired by the mountain, a reference to Thomas Mann's novel, "The Magic Mountain," which is set in Davos.

Much of this year's forum is focusing on ways to cut poverty.

Schroeder said he favored proposals made by British Prime Minister Tony Blair to set a timetable for raising development aid and for more countries to join the "International Finance Facility," which is designed to double aid to Africa from US$50 billion (euro38 billion) a year.

Schroeder also addressed separate steps outlined by French President Jacques Chirac, who earlier said governments should raise billions of dollars through taxes on international financial transactions, plane tickets or fuel used by airliners and oceangoing vessels.

"We should look at financial flows in which there's nothing but hot air and speculation," said Schroeder. "We should consider a tax on purely speculative financial transaction."

He also slammed "speculation" on oil prices.

"Poor countries have been heavily affected" by record prices, he said. "Those who produce oil should show responsibility for the lack of development in poor countries because of these prices."

Later Friday Ukraine's new President Viktor Yushchenko is set to pitch his views at an evening session, alongside his Polish counterpart Aleksander Kwasniewski, a leading advocate of closer Ukrainian ties with the West. Brazilian President Luiz Inacio Lula da Silva also is scheduled to address the forum.

Copyright 2005, AP News All Rights Reserved