Prime Rib.

[Matthew X]

Analysis

Australian Foreign Minister Alexander Downer announced Aug. 29 that a free 
trade agreement (FTA) with the United States has become a "key third-term 
priority" for his government. Support for a deal is growing on both sides 
of the Pacific, as it would greatly enhance economic and political 
cooperation between the two allies.

However, despite the fact that U.S. President George W. Bush recently 
received congressional approval for trade promotion authority -- giving him 
the power to negotiate trade deals that Congress cannot amend -- 
negotiations with Canberra will not proceed as quickly as they recently 
have with Singapore or Morocco. There are several obstacles in place that 
will prevent any deal from being finalized before 2005 or implemented 
before 2008.

An FTA between Canberra and Washington would invigorate an already robust 
and friendly relationship. Australia was one of the first states to commit 
forces to the U.S. war on terrorism, as well as to the campaign in 
Afghanistan. Australia also has accepted the role of <America's deputy in 
the region http://www.stratfor.com/standard/analysis_view.php?ID=100377> 
and of the southern anchor in Washington's Asia-Pacific defense strategy. 
In addition, Canberra enjoys nearly unfettered access to U.S. military 
technology and intelligence.
http://www.stratfor.com/fib/fib_view.php?ID=206025

A recent statement by the head of the U.S. Drug Enforcement Administration 
directly links illicit drug trafficking in the United States to Middle 
Eastern militant groups. The U.S. administration could use the issue to put 
more diplomatic pressure on Middle Eastern governments such as Syria and Iran.

Analysis

U.S. Drug Enforcement Administration chief Asa Hutchinson told CNN Sept. 2 
that money from illicit drug sales in the United States is being used to 
fund Middle Eastern militant organizations, including Lebanon-based 
Hezbollah. More than 130 people, many of them of Middle Eastern origin, 
reportedly were arrested earlier this year when authorities busted a 
methamphetamine ring in the Midwest.

According to the CNN report, the DEA found that the alleged drug dealers 
had laundered millions of dollars in the United States and had wired the 
money to bank accounts connected to terrorist groups in Lebanon and Yemen. 
There are several possible motives behind Hutchinson's linking of Middle 
Eastern militants to drug trafficking, but in any case it could reshape 
both U.S. domestic and foreign policy.

Hutchinson's comments may be part of an attempt by the DEA to reinvigorate 
the U.S. war on drugs -- as well as get more funds for anti-drug efforts in 
Colombia -- by tying terrorism to narcotics trafficking. Congress will come 
back into session soon and will begin deciding budget allotments. Since 
Sept. 11, many agencies, including the U.S. Coast Guard, have focused less 
on drug interdiction efforts in places like the Gulf of Mexico and more on 
homeland defense issues like port security. The DEA would like to see this 
attention shift back more toward drugs.
Chaos and Neglect Dominate U.S. Agenda in Latin America
Latin America still has not assumed high priority on the Bush 
administration's radar, despite previous pledges the president has made. 
Disorganization and confusion within the White House's Latin America team 
have left leaders in the region wondering who is in charge
...or what.