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03/01/2006:

"Spy Chief: Iraq May Spark Regional Fight"

WASHINGTON - A civil war in Iraq could lead to a broader conflict in the Middle East, pitting the region's rival Islamic sects against each other, National Intelligence Director John Negroponte said in an unusually frank assessment Tuesday.

"If chaos were to descend upon Iraq or the forces of democracy were to be defeated in that country ... this would have implications for the rest of the Middle East region and, indeed, the world," Negroponte said at a Senate Armed Services Committee hearing on global threats.

...Still, he told senators he is seeing progress in the overall political and security situation in Iraq. "And if we continue to make that kind of progress, yes, we can win in Iraq," he said.

...At the Senate hearing, Lt. Gen. Michael Maples, director of the Defense Intelligence Agency, painted a similarly stark picture of Afghanistan.

While the government has made progress in disarming private militias, Maples said, his agency estimates that violence from the Taliban and other anti-coalition groups in Afghanistan increased 20 percent last year.

"Insurgents now represent a greater threat to the expansion of Afghan government authority than at any point since late 2001, and will be active this spring," Maples said in his written statement.

...On Venezuela, Negroponte said U.S. intelligence expects President Hugo Chavez to deepen his relationship with Cuban President Fidel Castro and "seek closer economic, military and diplomatic ties with Iran and North Korea."

Negroponte said the U.S. is concerned about Chavez's arms purchases, using profits from oil production. "I would say that it's clear that he is spending hundreds of millions, if not more, for his very extravagant foreign policy" at the expense of the impoverished Venezuelan population, he said.
news.yahoo.com