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### Viewing cable 06REYKJAVIK97, MEDIA REACTION FOR MARCH 21-22, 2006: U.S. REMOVAL

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06REYKJAVIK97 | 2006-03-22 15:03 | 2011-01-13 05:05 | UNCLASSIFIED | Embassy Reykjavik

`

    VZCZCXYZ0008
    OO RUEHWEB

    DE RUEHRK #0097/01 0811558
    ZNR UUUUU ZZH
    O 221558Z MAR 06
    FM AMEMBASSY REYKJAVIK
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 2645
    INFO RUEHNO/USMISSION USNATO PRIORITY 0190

` `

    UNCLAS REYKJAVIK 000097

    SIPDIS

    NATO FOR MIKIEWICA

    SIPDIS

    E.O. 12958: N/A
    TAGS: NATO MARR PREL KPAO IIP ECA IC
    SUBJECT: MEDIA REACTION FOR MARCH 21-22, 2006: U.S. REMOVAL
            OF AIR ASSETS FROM NAVAL AIR STATION KEFLAVIK

    ¶1.  Summary: March 21 press coverage of the U.S. decision to
    remove most assets from the base at Keflavik was punctuated
    by PM Asgrimsson's statement that the U.S. decision had
    created a "climate of distrust between the two countries."
    Coverage also focused on NATO SECGEN Scheffer's comments
    that NATO had an obligation to help ensure Iceland's future
    defense arrangements.  The media speculated that the U.S.
    had already decided to pull out of Keflavik when it invited
    the Icelandic side to negotiations in February because the
    base had been zeroed out in the Administration's FY'07
    budget proposal.  End Summary.

    --------------------------------------------- --------
    PM Says U.S. Action Has Created "Climate of Distrust"
    --------------------------------------------- --------
    ¶2.  Summary of report in March 21 news daily "Morgunbladid"
    and March 20 Morgunbladid website report:

    Almost three hundred Keflavik region residents attended a
    meeting Monday evening where PM Asgrimsson spoke about the
    withdrawal of U.S. from the base at Keflavik.  The PM said
    there were three tasks ahead following the US decision:
    negotiations with the U.S. on Iceland's future defense,
    Iceland needing to assume responsibility for additional
    operations at Keflavik Airport, and addressing the general
    employment situation in the region.

    Asgrimsson said President Bush had conveyed a firm intention
    to meet U.S. obligations under the bilateral defense
    agreement and the NATO pact, and that it now remained to be
    seen whether Iceland could rely on that U.S. commitment.
    "It is obvious that a climate of distrust has been created
    between the two countries, given the way in which these
    issues have been handled over the last few days, and it
    remains to be seen whether it will be possible to
    reestablish trust between Iceland and the United States with
    NATO assistance", Asgrimsson said, adding that some have
    suggested that the defense agreement should now be
    cancelled.

    Asgrimsson said that U.S. proposals for a replacement
    defense arrangement have not been forthcoming. "We have
    never refused changes, but have so far not received any
    proposals as to what exactly should replace the existing
    capabilities."

    Concerning his recent phone conversation with NATO SECGEN
    Jaap de Hoop Scheffer, Asgrimsson said Scheffer had told
    President Bush in their Washington meeting on Monday that
    this was not only an issue for Iceland but also for the 26
    NATO nations including the United States.

    Asgrimsson quoted Scheffer as saying "NATO has obligations
    to Iceland and Iceland has responsibilities to NATO.  Thus
    the Iceland-U.S. Defense agreement is a part of the defense
    readiness of the whole Alliance."  President Bush told him
    that the issue had been decided, and called it modernization
    of the defense of Iceland, and that the U.S. would soon
    present its proposals as to how to achieve that.

    The PM said he and Scheffer had agreed it is necessary to
    wait and see what the U.S. proposals will contain, and to
    subsequently review those ideas within NATO.

    "In an earlier conversation he (Scheffer) said to me that he
    intended to visit Iceland in the fall, but I emphasized that
    I thought that an earlier visit is required for
    consultations on the issue.  He promised to come as soon as
    possible," Asgrimsson said.

    --------------------------------------------- --------------
    Justice Minister's Comments at Political Science Conference
    --------------------------------------------- --------------
    ¶3.  Summary of Report in March 21 news daily "Morgunbladid":

    Speaking at a conference of the Association of Political
    Scientists, Justice Minister Bjorn Bjarnason said things
    must be arranged in such a way that attacking Iceland would
    not be something anyone would attempt without very careful
    preparation, knowing that they would meet resistance and
    that the country would not be easy prey.  Continuing, he
    said that from the government's perspective, the most
    important task is to fill the gap that will be left with the
    departure of the helicopters.  They were the visible symbol
    of national defense and the aspect of operations at Keflavik
    Airport that affected Icelanders most.  At the same time,
    Bjarnason said it was not unexpected that the squadron was
    leaving, as the Icelandic Government had proposed that
    Iceland should take over these operations.

    Bjarnason said the U.S. decision had not only provoked
    discussion of Iceland's situation with respect to security
    and defense, but it also concerns neighboring countries on
    the eastern side of the Atlantic.  He said that in his
    opinion there should be an agreement with Denmark on rescue
    missions and security in the North Atlantic, adding that the
    United Kingdom and Norway would also be considering how
    security could best be guaranteed in the region.

    --------------------------------------------- ------------
    Editorial Criticizes Characterization of Base Pull-out as
    Modernizing Defenses; Emphasizes SECGEN Open to NATO Role
    --------------------------------------------- ------------
    ¶4.  Summary of Op-Ed in March 21 news daily "Morgunbladid":

    The Americans will simply make fools of themselves if they
    continue using the phrase "modernize the defenses," while at
    the same time saying they will leave only insignificant
    manpower and equipment in Iceland.  They have not answered
    the question as to how they will defend Icelandic airspace,
    protection which all Nato countries believe they require.
    Would people in cities and towns in the U.S. consider it
    modernizing their defenses if doing so meant they had no air
    defense?

    It is of course positive that the NATO Secretary General
    acknowledged Iceland's point of view on this whole issue and
    spoke clearly about NATO's responsibility.  It naturally
    strengthens the hope that it will be possible to find a
    solution to Iceland's defense needs in cooperation with the
    alliance as a whole, if negotiations with the U.S. prove
    unsuccessful.

    --------------------------------------------- --------------
    All News Channel Focuses on Base Being Zeroed out in Budget
    --------------------------------------------- --------------
    ¶5.  Summary of NFS TV Evening News Story, March 20:

    It was clear in February that the Keflavik base would be
    closed since the U.S. Government decided not to fund any
    operations at the base after October 1st of this year.
    Sources say that this was known as early as the beginning of
    February and this was the reason why Iceland-U.S. defense
    talks were initiated that month.  President Bush submitted
    his budget for FY07 to Congress on February 6 and the
    Administration's budget proposal included not a single
    dollar for the Keflavik base.  Simply put, this means that
    if funding is to be procured for any operation at Keflavik
    after 1 October, those funds must either be taken from other
    programs or additional funding sought from Congress.  A U.S.
    Department of Defense spokesman told NFS News that such a
    supplementary budget request was highly unlikely.

    NFS sources say that Foreign Minister Haarde's meeting with
    Secretary of State Condoleeza Rice on February 2, and the

    SIPDIS
    follow-on security talks between U.S. and Icelandic
    delegations, were the result of the fact that funding for
    Keflavik was eliminated from the President's budget.  The
    U.S. wanted to make a last attempt to see how much Iceland
    was willing to contribute to maintain the base.  The
    proposal was not adequate and thus the resulting
    announcement of the base's closure.  But a few days after
    the talks, when the budget was submitted, it should have
    been clear to the Icelandic authorities that they had
    already lost the fight and the base would close before
    October 1.

    ----------------------------------------
    French Offer Shoulder, Possibly Commerce
    ----------------------------------------
    ¶6.  Summary of article in March 22 "Morgunbladid":

    French Foreign Minister Philippe Douste-Blazy told Haarde in
    Paris 21 March that France was "concerned" about the
    situation in the North Atlantic.   Haarde told the press,
    "France is not indifferent to the situation here in the
    North Atlantic, and it is also concerned as a member of
    NATO... our intention is to wait and see what the United
    States proposes... and then we will discuss the issue with
    the other NATO countries in circumstances require... the
    French do produce all kinds of equipment for rescue
    operations, and it is no secret that they are interested in
    selling it... we do already have French helicopters for the
    Coast Guard."

    Van Voorst

`