French President Approves Secret Eurozone Consultations, Meeting With German Opposition (TS//SI-G//OC/NF)

(TS//SI-G//OC/NF) French President Francois Hollande has approved holding secret meetings in Paris to discuss the eurozone crisis, particularly the consequences of a Greek exit from the eurozone. On 18 May, Hollande directed Prime Minister (PM) Jean-Marc Ayrault to set up a meeting at the Office of the President (the Elysee) for the following week. Hollande, Ayrault, and “appropriate ministers” would attend, and special emphasis would be given to consequences for the French economy in general and for French banks in particular. Hollande stressed that the meeting would be secret. (COMMENT: The French president seems worried that if word were to get out that Paris is seriously considering the possibility of a Greek exit, it would deepen the crisis.) In addition, secret meetings are to be held in Paris between French officlans and members of the German Social Democratic Party (SPD). Hollande assured the PM that hosting the meeting at the Elysee was “doable,” although Ayrault warned the president to keep the event a secret so as to avoid diplomatic problems. (COMMENT: By “diplomatic problems,” Ayrault is referring to what could happen if German Chancellor Angela Merkel finds out that Hollande is going behind her back to meet with the German opposition.) Earlier reporting reveals that following talks last week in Berlin with Merkel, Hollande complained that nothing of substance was achieved; it was purely for show. Hollande had found the chancellor fixated on the Fiscal Pact and above all on Greece, on which he claimed she had given up and was unwilling to budge. This made Hollande very worried for Greece and the Greek people, who might react by voting for an extremist party. After meeting Merkel, the French president contacted SPD Chairman Sigmair Gabriel and invited him to Paris so that they could talk.

Foreign Satellite, Unconventional

French, German governmental

Z-G/OO/503643-12, 211549Z; Z-G/OO/503541-12, 161711Z

Sensitive Issues on the Agenda When French, U.S. Presidents Meet Next Week in Washington (TS//SI//NF)

(TS//SI//NF) French President Sarkozy intends to raise a number of sensitive topics with the U.S. President when the two leaders meet in Washington on 31 March, according to an exchange last week between the French ambassador in Washington Pierre Vimont, and Sarkozy’s diplomatic advisor, Jean-David Levitte. Vimont conveyed that the French President will express his frustration that Washington has backed away from its proposed bilateral intelligence cooperation agreement and Sarkozy intends to continue to push for closure. As Vimont and Levitte understand it, the main sticking point is the U.S. desire to continue spying on France. On the topic of Afghanistan, Levitte noted that Sarkozy is ready to authorize more military trainers but wants clarification on how many are needed, given the conflicting figures from U.S. sources. Another proposed topic was efforts by the European Aeronautic, Defense, and Space Corporation (EADS) to win a tanker aircraft contract with the U.S. military. Vimont revealed cryptically that the deal is moving forward but did not provide any details. Levitte had not expected to put the labeling dispute with Pernod Ricard (the world’s second largest spirits group) on the agenda, but Sarkozy had just spoken to the company’s chairman who had asked the president to intercede on his behalf. (COMMENT: Patrick Ricard, chairman of the Pernod Ricard board of directors, is said to be one of Sarkozy’s wealthy backers.) Vimont characterized the issue as a very political matter in the U.S., and suggested that a direct appeal to the White House might be useful. While Sarkozy intends to broach the issue with the U.S. President, Levitte will talk to the U.S. President’s Economic Adviser and Deputy National Security Adviser. Finally, Levitte expected the two leaders to discuss other pressing subjects including Iran, the Middle East Peace Process, Afghanistan and Pakistan, Yemen, Somalia, the Sahel, Russia, China, Turkey, climate change, and the financial situation of several European countries; however, he provided no details on those topics.

Unconventional

French diplomatic

Z-3/OO/507179-10, 231635Z

(TS//SI-G//OC) French President Presses for Selection of Roed-Larsen as Deputy UNSYG

(TS//SI-G//OC/REL TO USA, AUS, CAN, GBR, NZL) French President Jacques Chirac told Foreign Minister Philippe Douste-Blazy on 23 December to work to ensure that current UN Special Envoy for the Implementation of UNSC Resolution 1559 Terje Roed-Larsen is selected as Deputy UNSYG or at least offered a position of similar responsibility. Chirac spelled out in deliberate fashion exactly how he wanted Douste-Blazy to proceed, instructing him to approach new UNSYG Ban Ki-moon and report back on Ban’s sentiments regarding the deputy post. (COMMENT: Chirac’s detailed orders may be in response to the foreign minister’s propensity, amply demonstrated in the past and the impetus behind a number of presidential reprimands, for making ill-timed or inaccurate remarks.) The President was keen on Roed-Larsen’s selection for several reasons, including his belief that the situation in the Middle East requires a skilled hand with experience in the region and the realization that–for once–France, Russia, and the U.S. all support the same man. Other considerations were that Ban intends to keep Frenchman Jean-Marie Guehenno on as head of the UN Department of Peacekeeping Operations, which is to be divided into two parts, with the newer organization handling logistics. That planned division, however, has drawn fire from Douste-Blazy, who thinks that it would be a catastrophe.

Unconventional

French leadership, UN diplomatic

G/OO/6411-06, 271650Z

Sarkozy Determined to Proceed With Mideast Initiative, May Pressure U.S. President (TS//SI-G//OC/NF)

(TS//SI-G//OC/NF) In spite of an apparent lack of interest on the part of some major players, French President Nicolas Sarkozy affirmed on 7 June his determination of go forward with an initiative to restart direct Mideast peace talks between Israel and the Palestinians. It was also disclosed in a conversation between Sarkozy and his foreign minister, Alain Juppe, that consideration was given to including the Quartet in the process; however, they were wary about such an invitation because that group might not bow to Paris’s wishes. Not being a member of the Quartet, they surmised, France would have no control over what transpired in one of its meetings, and if the group elected not to support direct talks, the French initiative would be a non-starter. Another concern centered on the dynamics of the Quartet: the fear in Paris was that in any session involving the EU High Representative for Foreign Affairs and Security Policy, UNSYG Ban Ki-moon, Russian Foreign Minister Sergey Lavrov, and the U.S. Secretary of State, the last two individuals would dominate the proceedings. Finally, the president was giving thought to appealing to Russian President Dmitriy Medvedev for a possible joint initiative without the United States or, as another option, issuing an ultimatum to the U.S. President regarding Palestinian statehood. The ultimatum would demand that Washington back France’s efforts to restart the peace process, failing which Sarkozy would tell the U.S. President that Paris will not side with the U.S. in September (presumably referring to the deliberations in the UN General Assembly on Palestinian statehood).

Unconventional

French leadership

Z-G/OO/513370-11, 091416Z

Sarkozy Sees Himself as Only One Who Can Resolve World Financial Crisis (TS//SI-G//OC)

(TS//SI-G//OC/REL TO USA, AUS, CAN, GBR, NZL) French President Nicolas Sarkozy considers it his responsibility to Europe and the world to step up to the plate and resolve the world financial crisis. He further declared that he is the only one, given France’s EU Presidency, who can step into the breach at this time. The President blamed many of the current economic problems on mistakes made by the U.S. Government, but believes that Washington is now heeding some of his advice. In his view, this is the first time that the U.S. has not taken the lead in managing a global crisis and France will now take the helm. Sarkozy is determined that the mid-November financial summit, which he proposed, will bring drastic change to the world financial system. Finally, the French President was pleased by some progress made within the EU to ease the crisis and by his excellent working relationship with the British and Spanish prime ministers.

Unidentified

French leadership

G/OO/503290-08, 291640Z