The pressure to make such a choice builds each day, as some of the US' closest allies have demanded explanations from Washington after similar disclosures of American electronic spying. Inside the administration it has touched off behind-the-scenes recriminations between the White House and the intelligence agencies over how much detail was given to White House officials about which world leaders are being monitored.
A senior official declined to say what Obama knew or did not know about monitoring of Merkel's phone, but said the president "doesn't think we are in the right place."
The tension with Germany built last week after German officials were given evidence of the cellphone monitoring by Der Spiegel, the German weekly newsmagazine. The first protests to Washington came in an angry phone call to Susan E Rice, the president's national security adviser, from her German counterpart, Christoph Heusgen.
During the call, according to German officials, Rice insisted that Obama did not know about the monitoring of Merkel's phone, and said it was not currently happening, and would not in the future. But according to American officials familiar with the call, Rice would not acknowledge that the monitoring took place, even though she did not dispute the evidence the Germans had provided to her.
If Rice's contention that the president was unaware of the monitoring is correct, it raises the question of why he was not alerted.
There is little new in spying among allies: the oft-quoted line from secretary of state Henry L Stimson that "Gentlemen do not read each other's mail" was barely true when he uttered it in 1929, and Stimson himself later oversaw the breaking of codes during World War II. But the sentiment is particularly potent in the case of a country like Germany, which has been critical for a number of American intelligence operations.
The BND, Germany's main intelligence agency, has pursued suspected terrorist cells and was critical to extracting information from an Iranian scientist whose computer hard drive revealed documents strongly suggesting Iran was working on the design of a nuclear warhead.
A spokesman for the director of national intelligence, James R Clapper Jr, declined to comment about any American discussions with the Germans about the intelligence relationship between the two countries. In the past, Germany has pushed for an agreement similar to the understanding that the US has with Britain and three other English-speaking allies that prohibits spying on one another.
Until now the Obama administration has been loath to broker such a deal with the Germans, who have publicly stated their interest in a nonspying pact, partly because other nations would demand a similar arrangement. But the revelations of recent days have so strained relations between Washington and Berlin that that calculus appears to be changing — especially because American officials have difficulty making a credible case for what US has to gain from spying on senior German officials.
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