PESD director David G. Victor testifies to the Senate Committee on Energy and Natural Resources that the U.S.-India nuclear deal currently being debated by Congress could have a large impact on greenhouse gas emissions and be a major step towards engaging developing countries in the fight against climate change.

David Victor shows that by displacing coal-fired electricity generation, the U.S.-India nuclear deal could realize carbon dioxide emission reductions that rival the European Union's efforts under the Kyoto Protocol and far exceed previous efforts to engage developing countries in combating climate change.

For Vice President Dick Cheney, the question of how to deal with would-be nuclear powers in Iran and North Korea is disarmingly simple.

"We don't negotiate with evil; we defeat it,'' Cheney reportedly pronounced, dismissing a State Department bid in late 2003 to make a deal with North Korea. A similar prescription was offered when moderates in the Iranian regime made a secret approach that year to begin talks with the United States.

The long history of the Cold War is replete with the issue of whether -- and how -- to talk with a mortal foe. U.S.-Soviet relations froze time and again. For two decades, there was no dialogue at all with Communist China. But in the end, American policymakers have always chosen the path of negotiation.

For Cheney -- and for President George W. Bush -- sitting down at a table with the likes of North Korea's Kim Jong Il would be an act of weakness, a lessening of American power and prestige that granted undeserved legitimacy to despised regimes.

In recent months, and most prominently last week, the Bush administration has appeared to reverse its stance, opening the door to direct talks with North Korea and Iran.

These moves are carefully constrained, reflecting in part the ongoing divisions in the Bush administration about the advisability of going down this path. Contacts with both regimes will take place only within the framework of multilateral talks and focused solely on the issue of their nuclear programs. One-on-one talks on a broader agenda, including establishing basic diplomatic relations, have been explicitly ruled out, for now.

The decision to talk seems driven in large part by the realization that defeating evil has proven to be more difficult than some in the administration assumed. After Iraq, the use of military force against Iran -- and even more so against a North Korea already probably armed with nuclear weapons -- is highly unlikely. Potential allies in imposing economic and political sanctions -- the Europeans, Russians and Chinese, along with South Korea and Japan -- won't even consider such steps without a greater show of American willingness to negotiate with the evil enemy.

Limited as it is, the significance of this shift has to be seen against the backdrop of deep resistance to such diplomatic engagement in the Bush administration.

"There is a fundamental disagreement over how to approach the North Korea problem,'' explained Richard Armitage, who served as deputy secretary of state from 2001-05.

"'Those of us at the State Department concluded: From the North Korean point of view, the nuclear issue is the only reason we Americans talk with them,'' Armitage recounted in a recent interview with the Oriental Economist newsletter. "Therefore, the North Koreans would be very reluctant to let go of the nuclear program. We knew it was going to be a very difficult process. But you have to start somewhere. You start by finding out what their needs and desires are, and seeing if there is a way of meeting those needs and desires without giving away something that is sacred to us.''

But the White House and others in the administration blocked at every turn their attempts to open direct dialogue with Pyongyang. "There is a fear in some quarters, particularly the Pentagon and at times in the vice president's office, that if we were to engage in discussions with the North Koreans, we might wind up with the bad end of the deal,'' Armitage said. "They believe that we should be able to pronounce our view, and everyone else, including the North Koreans, should simply accept it. This is not a reasonable approach.''

Six-party talks

The compromise was the decision, through the good offices of China, to convene six-party talks that included surrounding countries such as Russia, South Korea and Japan. Administration officials have argued that this format rallies others to back the United States in pressing the North Koreans, effectively isolating them.

The same argument was made for the United States to support, but not directly join, until this past week, European negotiations with Iran. As recently as April, Bush was still publicly wedded to this logic.

"With the United States being the sole interlocutor between Iran, it makes it more difficult to achieve the objective of having the Iranians give up their nuclear weapons ambitions,'' Bush said in answering questions following an April 10 speech. "It's amazing that when we're in a bilateral position, or kind of just negotiating one on one, somehow the world ends up turning the tables on us.''

Arguably, however, the opposite has been true. In the case of Iran, the Europeans, including Great Britain, have consistently urged the United States to talk directly to Iran.

An excuse not to talk

All the other partners in the six-party talks, including the closest U.S. ally, Japan, have held their own direct talks with Pyongyang and pushed the United States to do the same. Ultimately, it is the United States that has found itself isolated.

North Korean experts in the State Department had warned against relying only on this approach.

"In the case of negotiating with North Korea, more is not merrier and certainly not more efficient,'' says Robert Carlin, a longtime CIA and State Department intelligence expert on North Korea who participated in virtually all negotiations with the North from 1993-2000. "The more parties and people at the table, the greater the likelihood of posturing, and the harder it is to make concessions.''

In his view, the insistence on a multilateral approach was initially an excuse not to talk. "They didn't want bilateral talks with Pyongyang and they certainly didn't trust the State Department to conduct any such thing.''

These divisions have persisted. Last September, with the backing of Secretary of State Condoleezza Rice, the State Department's chief negotiator was finally allowed to meet his North Korean counterpart. This led to an agreement in the six-party talks last September, a compromise that conceded in principle the North Korean right to have a nuclear power reactor.

That deal prompted a backlash from Cheney and others, according to senior officials within the administration, and fresh curbs on direct contacts with Pyongyang. But the new proposal to Iran apparently also includes an offer to supply power reactors.

What still has resonance is the belief that direct talks with North Korea and Iran amount to acceptance of the regimes in power in both countries.

Resistant to deal

"Ultimately the president is, on this issue, very, very resistant to the idea of doing a deal, even a deal that would solve the nuclear problem,'' Flynt Leverett, who dealt with Iran for the Bush National Security Council, said in a recent interview. "You don't do a deal that would effectively legitimate this regime that he considers fundamentally illegitimate.''

The administration may calculate that this offer of talks will only serve to isolate Iran and shore up ties with Europe. But it may have stepped onto a slippery slope toward a bargain that will necessarily involve painful concessions to Iran and lead toward a resumption of diplomatic relations broken off almost three decades ago.

Opposition to negotiating with the enemy is deeply embedded in the Bush administration. There is, however, a precedent for a sea change -- Ronald Reagan. President Reagan came to office in the wake of the Soviet invasion of Afghanistan and the American boycott of the 1980 Moscow Olympics. Dialogue with the Soviets was halted and the staff of the Reagan National Security Council opposed any contacts with Moscow.

Reagan himself, in a famous 1983 speech, referred to the Soviet Union as an ``evil empire,'' followed two weeks later by the launching of the "star wars'' missile-defense program. Soviet leaders, we learned later, were convinced that the United States might launch a first strike. In August of that year, Soviet fighter aircraft shot down a Korean Airlines passenger jet that had strayed from its flight path, a sign of sharply increasing tension.

In the Reagan administration, against fierce internal opposition, Secretary of State George Shultz pushed to resume dialogue with the Soviets, beginning with achievable steps such as resuming grain sales. Reagan ultimately agreed, starting down a road that led to the series of dramatic summits from 1985 with incoming Soviet leader Mikhail Gorbachev.

Reagan's willingness to sit down with the "evil'' foe flowed from a sense of conviction in American strength. It is not yet evident that his Republican successor shares the same sense of confidence.

The European Forum at the Freeman Spogli Institute for International Studies at Stanford University had an eventful and exciting 2005-06 academic year. We organized almost thirty seminars, workshops and other events on cultural, economic and political issues affecting Europe, its relations with the United States and its role in the world.

We hosted several prominent politicians and diplomats during the academic year. In October John Bruton, European Union Ambassador to the United States and former Prime Minister of Ireland (1994-97), presented his views on Europe and the United States as global partners. Earlier during the Fall we were honored to welcome Latvian Foreign Affairs Minister Artis Pabriks. He gave a lecture on Latvia's current challenges in foreign policy and homeland security.

During the Winter term Estonian President Arnold Rüütel visited Stanford. In his talk he addressed such issues as Estonia's relations with the United States, the European Union and Russia. Andras Simonyi, Hungarian Ambassador to the United States, also visited the European Forum. He presented a fascinating lecture on the political and economic situation in Hungary two years into its EU membership. Three more diplomats gave talks during the Winter Quarter. Kurt Volker, Principal Deputy Assistant Secretary of State for European and Eurasian Affairs, spoke about the United States, Europe and the broader Middle East. Dominic Martin, Counsellor at the British Embassy in Washington, talked about the United Kingdom and its current challenges and opportunities in world politics. Richard Morningstar, former United States Ambassador to the European Union, Lecturer at the Stanford Law School and European Forum Research Affiliate, presented his insights into the cooperation between the United States and the European Union in counter-terrorism. This last seminar was part of a series of events the European Forum organized on the manners in which European countries and institutions are dealing with the threat of terrorism, following the attacks in Madrid and London.

The War on Terror was also among the issues addressed by Joschka Fischer, former German Foreign Minister (1998-2005). He visited the Freeman Spogli Institute for International Studies in April and gave a 2006 Frank E. and Arthur W. Payne Distinguished Lecture for a standing room only crowd at the Bechtel Conference Center at Encina Hall. He talked about Europe's prospects in a globalized world and the future of transatlantic relations. British Ambassador Sir David Manning gave an equally well-attended and equally impressive 2006 Frank E. and Arthur W. Payne Distinguished Lecture on energy as a burning issue in foreign policy.

Other events organized on the topic of counter-terrorism included a round-table discussion on anti-terrorism finance, by Jacob Shapiro, Laura Donohue and Khalid Medani, all affiliated to Stanford University, and a lecture on the French experience of counter-terrorism by Jeremy Shapiro from the Brookings Institution. The series of events culminated with a lecture and a seminar by prolific author and columnist Christopher Hitchens. During a visit to the European Forum in May he presented his fascinating and thought-provoking views on the war on terror, and the situation in Iraq and Iran. The series of events on terrorism is to continue during the next academic year and will culminate with a Thinking Terrorism conference in late 2007.

Furthermore, we organized a number of events on other political issues. German sociologist Heinz Bude, from the University of Kassel, presented his views on the most recent German elections from a broad, societal and historical perspective, paying attention to the 1968 student uprisings and their long-term impact on German society. Christian Deubner, from the CEPII research center in Paris, shared his opinions on current developments in French politics, with a focus on the French rejection of the EU Constitution earlier this year and its impact on France's position in the EU. German author Peter Schneider offered his reflections on the cultural differences between Europe and the United States. He compared the relationship between the two continents to a marriage that has its ups and downs, but endures. Josef Joffe, Editor of the German newspaper Die Zeit, pointed at cultural, demographic, political and economic reasons to argue that the European Union is not about to become a new superpower.

Ken Kollman, from the University of Michigan, presented a political-economic model of leadership in federations and applied it to the EU. Bert Martens, an economist at the EU Commission in Brussels, presented an analysis of the EU's export of political and economic institutions to its neighboring countries, and the incentives it provides for regime change. Markus Hadler, a sociologist at the University of Graz and visiting professor at the European Forum during the past academic year, offered an appraisal of democracy in Europe.

Simon Hug, from the University of Zürich, presented a political-economic model of the negotiations for an EU constitution. Yaron Deckel, from the European Broadcasting Service, talked about the most recent Israeli Elections. Cas Mudde, from the University of Antwerp, presented a talk on immigration and the success of populist parties in the Low Countries. Piet Jan Slot, from Leiden University, gave a seminar on the EU's plans for an internal market for services.

We also organized a number of seminars dealing with various aspects of World War II and its aftermath. There was a talk on the effects of the Europeanization of the holocaust on the attitudes toward Jews, by Werner Bergmann from the Technische Universität Berlin. Monica Siegel, from California State University, Sacramento, gave a presentation on memory and reconciliation in France and Germany. Richard Evans, from Cambridge University, talked about coercion and consent in Nazi Germany. Wolfgang Eichwede, from the University of Bremen, gave a seminar on the dissident movement and Samizdat culture in Eastern Europe. Holocaust survivor Leopold Engleitner and his biographer Bernhard Rammerstorfer talked about surviving Buchenwald as a Jehova's Witness. Martina Pottek, from Bonn University, gave a presentation about artistic concepts to commemorate the holocaust.

Andreas Dorschel, Professor at the University of Graz, and Visiting Austrian Chair Professor at the European Forum during the past academic year, presented a lecture on Bruckner and the 19th century fates of origin.

As the next academic year draws near, we anticipate many more prominent speakers to visit the European Forum. Included in our schedule is the Europe Now lecture featuring Daniel Cohn-Bendit in November 2006.

PESD Director David Victor addresses a plenary session of the triennial congress of the world gas industry on June 9th. Victor's presentation summarizes the results the "Natural Gas Markets" study, soon to be released in book form by Cambridge University Press.

Also at the World Gas Congress, PESD research fellow Mark Hayes presented his research on the developing Atlantic Basin LNG arbitrage.

On May 20-21, 2006, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) and the China Institute for Science and Technology Policy (CISTP) of Tsinghua University co-sponsored an international workshop in Beijing on "Greater China's Innovative Capacity: Progress and Challenges."

The workshop, held in collaboration with the Zhongguancun Science Park and the Industrial Technology Research Institute (ITRI), was hosted on the campus of Tsinghua University. Participation by more than 70 academics, industry leaders and government policy makers reflected many of the ongoing partnerships SPRIE holds with institutions, individuals and organizations around the world.

The nine workshop sessions and more than twenty paper presentations provided rich opportunities for engaging discussion and knowledge sharing. The output of this workshop will lead to the publishing of selected proceedings in the near future.

Theme and Topics

The workshop addressed how the innovative capacities in Greater China are evolving. What are the most significant areas of progress and challenge? Scholars and business leaders from the U.S., Europe and Asia were brought together to discuss new research and current practice of key aspects of Greater China's innovative capacity: inputs, processes, outputs, institution, government policies, business models and management strategies.

More specifically, the workshop focused on:

• information and communications technologies
• innovation across the value chain from R&D to business processes and models
• development within and linkages among key regions and players in mainland China, Taiwan, Singapore and Silicon Valley

The nuclear regime in place since the Nonproliferation Treaty (NPT) took effect in 1970 is broken and needs to be fixed, the world's highest-ranking nuclear official told a half-full Memorial Auditorium in a wide-ranging lecture about the future of nuclear energy and weapons yesterday afternoon.

"We have a dysfunctional system -- system that cannot endure," said Mohamed ElBaradei, the director general of the International Atomic Energy Agency (IAEA). "We're reaching the fork in the road. Events in the last few years have made it clear that we need to change course."

The big news from ElBaradei's speech was his support for American entreaties to Iran. But the 2005 Nobel Peace Prize recipient also commented on North Korea, India, Pakistan, Iraq, terrorism, disarmament and the future of nuclear energy.

He said there are probably eight current nuclear states, excluding North Korea. He worried aloud that countries which can currently produce nuclear energy peacefully are only six months away from developing nuclear weapons for military purposes.

"Acquiring the technology to enrich uranium or reprocess uranium basically is the key to develop nuclear weapons as we have seen in Asia and Iran," he said. "They are virtually weapons states because in six months time if they decide for security reasons to develop their own weapon, they are there."

Iraq

While not a household name, ElBaradei was a prominent figure in the news as the lead weapons inspector in Iraq during the run-up to the 2003 American invasion. He said at the time that he could not find evidence of Iraqi weapons of mass destruction, but he would not conclude that there were no weapons in the country or that Saddam Hussein did not have a program.

ElBaradei asked for more time to complete inspections, but the Bush administration declined his request and decided to invade. The U.S. never found the nuclear and biological material that some had promised existed.

"Luckily...well I'm not sure luckily...we were proven right that there was no nuclear or any weapon of mass destruction in Iraq," he said. "But I hope that all of us have learned from the Iraq experience that we cannot just jump the gun. You have to be absolutely sure of the facts."

India

ElBaradei surprised observers when he supported the U.S. agreement with India earlier this year, which allowed the country to continue developing nuclear weapons and energy. He said the agreement with India did not endorse its proliferation activities but was indicative of the kind of outside-the-box thinking the international community needs when considering the spread of nuclear weapons and material.

"The end result is India coming closer and working with the rest of the world," he said. "It is not a perfect agreement, but it has a lot of advantages. From the safety, security and nonproliferation perspective, I see that agreement as a win-win situation."

Pakistan

Pakistan developed nuclear weapons as a response to India. Some have criticized Pakistan for its poor stewardship and control of the bomb, pointing out that weapons were almost fired during a skirmish over the disputed Kashmir region.

AQ Kahn, a senior nuclear scientist who helped Pakistan join the exclusive nuclear club, was caught selling compact discs and other information about bombs to several other countries.

"How much damage was done in the process we don't know," ElBaradei said.

The release of this nuclear material demonstrates the need for a "more robust verification system," he said, adding that Pakistan has come closer to the international community in recent years.

North Korea

Kim Jong Il expelled all IAEA inspectors in Dec. 2002, withdrew from the NPT in Jan. 2003 and announced in February 2005 that his military had a nuclear deterrent.

"North Korea is still a major problem," ElBaradei said. "We don't talk about it enough, but North Korea is declaring right now that they have a nuclear weapon. And the longer that they continue to be in that status, the more it is accepted in the collective conscious. This would be terrible because it will have a lot of negative ramifications in South Korea and Japan."

ElBaradei said ongoing negotiations are an important development but more needs to be done.

"What we see with the current six-party talks should have taken place years ago," he said.

Nuclear Proliferation

ElBaradei stressed that he understands the value of nuclear power, which produces much of the developed world's energy. Reducing its use would create more dependence on greenhouse gas-creating fossil fuels, he said.

"We need to use nuclear energy responsibly to maximize benefit and minimize risk," he said.

He said his "number one nightmare scenario" is a terrorist group acquiring nuclear technology since terrorists are not deterred by the possibility of reprisal.

In the post-Cold War world, ElBaradei said he could see no justification for the U.S. and Russia to maintain their nuclear arsenals on ready alert to fire with thirty minutes notice. He called on America to lead by example and continue to disarm its nuclear stockpile.

"Rather than pass judgment, I'd definitely like to say the U.S. should do more in leading by example in terms of nuclear disarmament," he said.

In September 2005, ElBaradei was reappointed to a third term as director general of IAEA. The United States had considered holding up his nomination but dropped its objections under pressure from European allies, who admire the former law professor from New York University.

Diplomat to the Core

The Egyptian native's sometimes broken English was interspersed with self-corrections and careful legalese nuance. ElBaradei answered questions posed by Political Science Prof. Scott Sagan, the director of the Center for International Security and Cooperation.

When Sagan made bold pronouncements about different country's nuclear activities, including the United States' "colossal failure" when North Korea violated the NPT, ElBaradei seemed careful not to point fingers, play the blame game or make enemies. Nonetheless, for a senior United Nations official, his speech was notably blunt.

"There's no international public servant whose integrity and work I admire more than yours," Sagan told ElBaradei.

Accompanied by his wife, ElBaradei spent the day at the University visiting with faculty and students. He spoke at a lunch sponsored by the Freeman Spogli Institute for International Studies and traveled to Sagan's home for a dinner with invited guests. He left the area at 8:30 p.m.