China Confidential

Foreign Confidential....

Russia's top leaders are said to be stunned by John McCain's selection of Alaskan Governor Sarah Palin as his running mate--a virtually unknown political personality with no known foreign policy experience.

The reason for the Russian reaction, diplomatic and media sources in Moscow say, is that the Kremlin, in keeping with its political culture and traditions, sees a conspiracy afoot--against Russia.

"Picking Palin as Vice President feeds Russian paranoia," our correspondent reports. "The Russian leadership jumps to the conclusion that McCain is sending them a signal, choosing a conservative from Russia's neighbor and former territory across the Bering Strait [before the sale of Alaska to the United States in 1867]. The Russians believe this means McCain is willing to risk a new cold war to defend Georgia, Ukraine and Poland against Russia's resurgence."

The Kremlin may also interpret Palin's presence on the Republican ticket as proof that the US intends to compete with Russia for Arctic oil resources. The Alaskan governor is a strong advocate for domestic oil production; and her husband is an oil worker.

During the Cold War, the 53-mile-wide Bering Strait marked the border between the US and the Soviet Union. The island of Big Diomede, Russia's eastern-most point, is only 2.4 miles from the US island of Little Diomede. During the Cold War, indigenous peoples on the US and Russian sides were prevented from crossing the border, which became known as The Ice Curtain.