It is possible that President Karzai is making these comments for a domestic political audience but if he actually means that Nato forces must stay inside their bases, then that would utterly undermine the counter-insurgency strategy.
The strategy is about winning support, elder-by-elder, village-by-village, valley-by-valley, if Nato forces cannot patrol then they will cede vast swathes of territory to the Taliban and that would be militarily catastrophic.
I think the collapse in talks with the Taliban is less significant, after all there was no sign they were going anywhere anyway.
The central problem tonight is that the President and Prime Minister were yesterday standing shoulder-to-shoulder in the Rose Garden saying progress was being made in Afghanistan, but in just 24 hours the central diplomatic and central military strategy is looking in severe jeopardy.
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