Thursday, June 10, 2010 - 4:04 PM

What does the ongoing BP oil spill imbroglio in the Gulf have to do with the war in Afghanistan? Probably not much, from the vantage point in the United States. But here in London this week, the two issues are being linked in some ways that should be worrisome for the Obama administration.
Two particular stories have featured in headlines in the major U.K. newspapers this week: BP's plummeting share price from President Obama's rhetorical attacks, and the London visit by Secretary Gates and General Petraeus urging a continued strong U.K. troop commitment to the NATO mission in Afghanistan (followed by Prime Minister David Cameron's surprise visit to Afghanistan today). Separate though they may be, the two stories are combining to produce one narrative in the minds of many British citizens: the Obama administration is attacking a pillar of our economy while urging us to sacrifice even more blood and treasure in Afghanistan.
BP of course bears the most blame for the catastrophic spill, as well as responsibility for stopping it and remedying the damage. And in the first few weeks after the rig exploded, there was little sympathy for BP even here in the United Kingdom. Most U.K. media coverage initially focused on the horrific environmental damage being wrought as well as the Obama Administration's apparent insouciance as the oil continued to gush.
But now that attacking BP (or "British Petroleum" as Obama calls it, even though that has not been the company's name since 1998) has emerged as a core tactic in the Obama Administration's scramble to arrest their own falling political fortunes, they risk doing real damage to relations with a key ally and the largest non-U.S. troop contributor to Afghanistan.
As recently as two months ago, BP was Britain's largest company by market cap, and is a core holding of most British pension funds. In other words, it is not just BP executives or investors in the City who take a hit when BP's share price plummets, but also every average Brit who has any type of stake in a retirement fund. Which is most of the country -- many of whom have also grown weary and skeptical of their nation's military role in Afghanistan.
Last week had already demonstrated one unintended consequences of the administration's intensifying campaign against BP: the vocal attacks that drive the share price down also erode billions of dollars in market value and diminishes the resources BP will have available to pay for the damage, clean-up, and compensation. The White House needs to be mindful of not going too far and triggering a second unintended consequence of further eroding British support for their force posture in Afghanistan. Fortunately at the U.K. end, Prime Minister Cameron, at least up to this point, is trying deftly to strike a balance and not further escalate tensions with the United States either over BP or over Afghanistan.
Pursuing a unified grand strategy is always a hard task, but this situation shows even more acutely the challenges of linking domestic and foreign policy such as the Obama administration's National Security Strategy attempts to do. Last week it was American strategic interests in Asia that got short shrift, as Obama cancelled (again) his Australia/Indonesia trip to focus on the BP spill. This week it is the U.S.-U.K. relationship that is suffering, as a beleaguered White House tries to shore up its domestic political standing at the expense of relations with a key ally.
There is no connection between Afghanistan and oil spill
Obama has to satisfy his domestic constituency just as Cameron has to do his.
But Cameron is ill-advised if he connects Afghanistan to BP’s woes for the gulf oil spill.
Most Americans on the right probably don't even know that Britain is in Afghanistan, and most Americans on the left wish it would leave as preclusion to a US exit. And don't pretend Britain is doing anyone any favors, any terrorists that would arise out of an ungoverned Afghanistan are just as likely to attack London as any US city.
And what of the British headquartered, British registered, pillar of [the British economy] being called British? It's much more reasonable than the company's recent allusions that it was "Beyond Petroleum." Although as mentioned elsewhere I do prefer it being referred to as the Anglo-Iranian Oil Company.
As one of the pioneers of the corporate charter/corporation the British should know that equity investment carries substantial risk, and that equity stakes are unsecured and subordinate to debt. Pensions ought to have been a bit more prudent in the nature of their holdings and in their diversification.
Do you know that George Bush is on the "right"? He's the one who asked the Brits to join the war in Afghanistan? Besides, after 9/11/2001, many Brits were killed in the World Trade Center and made it known that they stood beside us.
Oh, and let's not forget where England was before the Americans finally joined in WWII and the United States helped pull them out of their bunkers and on to victory.
This is not just an American problem, BP will wind up raping GB in the end as well (no pun intended)... They thought they could pull off a pony show of smoke and mirrors in the US, but we admire the truth ihere and don't just take what they say as gospel because they're going to foot our retirement. By the way, such is the case with my Father who drove gas trucks for Arco most of his career. So, it works both ways, but to not be able to see our frustration over GB's financial insecurity is entirely selfish. And if the quest for truth is called "rhetoric" across the pond, so be it. Give me the truth. Give me liberty or give me death.
Will Inboden might consider for his next post a few paragraphs demonstrating that what he wishes were true actually is true. He's not in the Bush administration anymore, and would do well to wean himself off bad habits like argument-by-assertion that he appears to have picked up there.
Anyone in the UK remember WWII??? oh ya, and WWI support??
I say it's not "rhetoric" that is affecting our relations with our largest ally, the UK. It is an honest assessment of wild life lost, habitats destroyed, pristine
beaches at risk of becoming oiled, loss of jobs, loss of seafood to
international and domestic interests, insufficient reporting of the facts by BP, a continual track record for risking safety for profit, media manipulation, the list goes on. Out of left field, SOME Brits claim that Americans should not be so bold to criticize because UK soldiers are fighting along side of US soldiers in Afghanistan?? So if a US company unleashed such a catastrophe in the UK, it would be OK for the US to point out that we fought side by side with
the British during WWII?? It's a smoke screen, that's how I see it. And
to criticize the US President is fine, but to be petty enough to point out
that Obama still calls BP "British Petroleum" even though it has not
been named as such since 1998 is sad and serves no purpose but to polarize and make the people of the UK look like they have too much time on their hands, finding silly faults. Walk a while in our shoes, examine BP's track record of felonies and misdemeanors and multi-million dollar fines here in the US and perhaps, some of those pensioners could admit that Obama may be great at speaking, but his "rhetoric" isn't that powerful. If BP would tell the truth to Americans (I'm not sure why they insist on being so obtuse), while raping the land, animals and economy in our country, while improving their safety measures, they wouldn't have to worry about stocks falling. Rhetoric doesn't bring a muti-billion Dollar/ Pound company down, it's own failures just speak for themselves... and BP's failures are screaming through a bull horn!
Shadow Government is a blog about U.S. foreign policy under the Obama administration, written by experienced policy makers from the loyal opposition and curated by Peter D. Feaver and William Inboden.
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