Tuesday, November 25, 2008
More on what we thought about our new President-elect
Justin Raimundo
His appointments augur ill
We know the sellout is a reality when we listen to Jamie Kirchick praise Barack Obama's national security appointments: "Barack Obama isn't even president yet, and he's already angering some of his most devoted followers on the party's left wing. This is the mark of what could be a very successful presidency," he snarks.
Kirchick, in his role as Marty Peretz's alter ego, is pleased as punch with the incoming Obama-ites, who appear to have abandoned their "netroots" early on and ceded the foreign policy realm to the pro-war Clinton wing of the party. He is mostly concerned with gloating over the fact that Joe Lieberman wasn't expelled from the Democratic caucus, but the larger issue is the party's foreign policy stance in general, which looks to be shaping up as distinctly right-of-center. ("Right," in this sense, means neocon, rather than authentically conservative, but then you knew that.)
As the last surviving representative of the Scoop Jackson Democrats, who have long been on the politically endangered species list, Lieberman has a special place in the hearts of neocons everywhere, but especially in the editorial offices of The New Republic, which, in spite of unconvincing efforts to suck up to the "new politics" wing, exists to hold high the banner of that hoary tradition.
Obama's personal intervention on Lieberman's behalf hints at where the Democrats are going as a governing party, and his appointments are rapidly confirming this trend: not only Hillary Clinton at State and Robert Gates at Defense, but also retired Marine Gen. Jim Jones as national security adviser. The former commander of U.S. forces in Europe and military head of NATO was described last year as a political "hot commodity" by the Wall Street Journal. In a piece that detailed the courting of the general by both political parties, Hillary is cited as saying she'd put him in her Cabinet, perhaps as defense secretary, although her campaign qualified this by saying that "it's way premature" to speculate about such matters, as indeed it was. Jones is best buddies with John McCain, and, although he assiduously avoided a formal endorsement, he made an appearance with his old friend during the campaign. When Jones served on a commission evaluating our military operations in Iraq, he concluded that we ought to stay the course: "Understand the fact that regardless how you got there, there is a strategic price of enormous consequence for failure in Iraq." His point of agreement with President-elect Obama is that he believes we've been grievously amiss in not escalating the fighting on the Afghan front sooner.
The argument for Gen. Jones as national security chieftain echoes the case for Hillary at State: "If Obama engages Iran," avers The New Republic, "it'll be harder to dismiss his overtures as soft-headed or naïve with Jones coordinating foreign policy." The same malarkey is being uttered with a straight face by defenders of the Clinton appointment, such as Obamacon-in-chief Andrew Sullivan, who claim it will somehow give Obama the credibility to pull off a settlement of the Palestinian-Israeli conflict. This assumes, however, that his "team of rivals," as the pundits have deemed it, won't mutiny. It assumes presidential omnipotence, when the reality is that without the cooperation of the vast and powerful national security bureaucracy, the White House will find it difficult to carry out its program. It also assumes Clinton and her menagerie won't actively sabotage the policies she attacked during the primaries as "naïve" and "dangerous."
On the key question of withdrawal from Iraq, Jones is a mixed bag. The Jones commission set up to evaluate Iraq's move toward creating its own military and police forces praised the Iraqi army but dissed the police as sectarian bullies and recommended they be disbanded. Of course, the police are run by the ruling Shi'ite parties, each of which has its own militia, and these will never be disbanded. The Jones plan is to reorient the U.S. mission in Iraq to protect the borders and leave internal security to the Iraqi military. At the congressional hearings held to present the commission's findings, Jones was questioned by Sen. Carl Levin:
"You say that significant reductions, consolidations and realignments would appear to be possible and prudent – is that your finding?"
"That's correct," was Jones' reply. However, when it came John McCain's turn to question his old bud, Jones told the Arizona senator what he no doubt wanted to hear. Asked if it would be in our interest to set a definite timetable for U.S. withdrawal, Jones said:
"Senator, I'll speak for myself on this, but I think deadlines can work against us, and I think a deadline of this magnitude would be against our national interest."
Is it really possible that a candidate for president elevated to front-runner status by antiwar voters in the primaries – and elected over a rival who made support for the war the leitmotif of his losing campaign – is enabling the hijacking of American foreign policy by a new cabal of warmongers?
The idea that by surrounding himself with advisers who have a long history of opposing any change in our bipartisan foreign policy orthodoxy Obama can somehow immunize himself from criticism is logical only in a Bizarro World kind of way. In that alternate universe, where up is down and black is white, it makes perfect "sense" for a president to appoint people to key posts who oppose his policies. In our own world, however, such an approach would be crazy – yet it seems to be happening right before our eyes.
Another disturbing aspect of the Jones appointment is that it underscores the rebirth of NATO as an engine of American aggression. No doubt the Bushian-neocon campaign to enlarge the archaic alliance and extend the Euro-American military umbrella into the Caucasus will be taken up by the Obama administration with fresh enthusiasm. The "unilateralist" approach attacked by Bush's Democratic critics as a strategic mistake is now about to be corrected, with a renewed NATO as its symbol. While the ostensible enemy is, at present, the Taliban in Afghanistan and Pakistan, NATO is, first and foremost, a challenge to Russia. Founded as the Western shield against the Soviet empire, now it is a sword pointed straight at Putin's throat, as the Alliance moves inexorably eastward. If a new confrontation with the Russians is in the making, then it makes sense to put a former NATO military chieftain in as national security adviser.
The new president's appointments resound like slaps in the faces of his liberal supporters: Rahm Emanuel (a fierce opponent of the antiwar wing of the party), Hillary, Robert Gates (they're trying to persuade him to stay on), and now Gen. Jones. It looks like antiwar voters voted for one thing, but are getting quite another – although it won't be the first time that's happened. From "he kept us out of war" in Woodrow Wilson's day to George W. Bush's pledge of "a more humble foreign policy," presidents seem to have a penchant for inverting their campaign promises in the foreign policy realm, and Obama's appointments could presage a lot of surprises – and bitter disappointments – for his supporters.
Just how docile is the rank-and-file of the Obama "movement" – will they take this lying down? We're about to find out. So far, the outrage of the "netroots" and the Rachel Maddow crowd seems limited to the triumph of Lieberman over the attempt to purge the evil spirit of Scoop Jackson from party precincts once and for all. And even this has nothing to do with Lieberman's rabidly pro-war views, per se, only with the Connecticut senator's endorsement of McCain.
As it slowly dawns on the netroots that they've been had, however, don't expect "netroots" entrepreneur Arianna Huffington to start asking uncomfortable questions. After all, she has a lot to lose. As the Times of London reports:
"Arianna Huffington looks set to cement her position as the Queen of Capitol Hill in the next few days.
"The Times has learnt that the Huffington Post, her influential political Web site, will confirm within the next week that it has completed a $15 million (£10 million) fundraising from investors.
"The money will finance the expansion of HuffPo, as it is known, into the provision of local news across the United States and into more investigative journalism. And it will ensure that Ms. Huffington's influence continues to spread across the U.S. political scene.
"She is a close friend of Barack Obama, the president-elect – who, with Hillary Clinton, has posted on her site – and, at a dinner in London on Wednesday night, joked: 'I only text three people – my two teenage children and Barack Obama.'"
Arianna criticize the Dear Leader's appointments? That might get her blocked from the presidential cell, not to mention alienate those generous investors whose interest in her money-losing, aesthetically disastrous, and painstakingly trite Web site might lessen considerably. Which just goes to show that no matter how high the price, a whore is still a whore – and what better occupation for the Queen of Capitol Hill?
The circus aspect of all this may be amusing, if you take your humor black, but the joke is on the rest of us when the Obama-ites take office, because that's when our real problems will begin.
Obama's appointments on the foreign policy front prefigure a policy of paralyzing caution and indecision. Just look at the cast of characters who will be major players on the national security field: not only Hillary and Gen. Jones, but also Joe Biden, who fancies himself a foreign policy maven and will no doubt want to play a major role in the decision-making process. This has all the makings of a three-way bureaucratic turf war, and the result is bound to be paralysis, rather than change of any desirable sort. Obama's first concern, as he takes office, will be facing America's economic crisis, and his full attention will be required for an extended period – plenty of time for the built-in rivalry in the foreign policy apparatus to take root and fester.
The outlook for the foreign policy of the new administration is not good. I foresee a protracted period of confusion and internal struggle, punctuated by periodic foreign crises in which Team Obama will be all too eager to prove their "toughness." Diverted by trouble on the home front, President Obama is likely to let the tremendous opportunities opened up by his international popularity and stature go to waste. Putting Hillary Clinton to work on forging a Middle East peace agreement is another example of Bizarro World logic in action: Obama might as well assign the task to Norman Podhoretz.
Original article posted here.
Interesting news regarding US cronies in Georgia
Russia's top investigator claims to have evidence that citizens from Nato member states including the US and Turkey fought for Georgia in the five-day war in August.
Asked to list the nationalities of the foreign fighters it believes were involved, Alexander Bastrykin, head of the Prosecutor-General's investigative committee said: "America, the Czech Republic, Chechnya, the Baltic States, Ukraine and Turkey."
"There were also two snipers - one from Ukraine and I believe a Latvian woman" - Alexander Bastrykin"It was a fairly small number of people. They mainly fulfilled support roles", Mr Bastrykin told reporters in Russia's second city of St Petersburg.
Suggesting that some had conducted training for the Georgian armed forces, he said: "There were also two snipers - one from Ukraine and I believe a Latvian woman."
He added that he considered the presence of foreign fighters a criminal offence and would raise the issue at a meeting with representatives of Interpol.
A senior security official in Tbilisi dismissed the statement and said by law only Georgian nationals could serve in the country's armed forces.
Kakha Lomaia, the Secretary of Georgia's National Security Council, said: "The statement that almost half of the world was fighting in our army in August is just a fantasy of those in the Russian leadership who would like to justify killings of the peaceful population."
Russia launched a massive counter-offensive on land and sea in August after Georgian forces tried to retake South Ossetia, a Moscow-backed separatist region that rejects Tbilisi's rule.
Original article posted here.
Maybe be wishful thinking or propaganda, but I thought it was good news so posted. Caveat emptor: I wouldn't rely on its prognostication.
TBILISI. Nov 25 (Interfax) - Georgian opposition leader Giorgy
Khaindrava believes Georgian President Mikheil Saakashvili is losing
popularity, but is doing everything to retain power.
"Saakashvili realizes that his days [as president] are numbered,
and he is doing everything to hold on to power to ensure his security,"
Khaindrava told Interfax on Tuesday.
"After the August catastrophe," Saakashvili is "a political corpse"
and "is unlikely to stay in power before the end of his second (and
last) presidential term," said Khaindrava.
"What is dangerous in Georgia now is not so much Saakashvili, but
the criminal group that has usurped power and that can create a lot more
problems," he said.
"We have more than once warned Western politicians that the coming
to power of Saakashvili and people close to him is dangerous not only
for Georgia, but nobody listened to the Georgian opposition. Now the
West is probably reconsidering its attitude to Saakashvili because he
was the catalyst of the aggravation of relations between the West and
Russia," said Khaindrava.
Khaindrava did not rule out that the situation in Georgia may
seriously aggravate in the next few months as a result of the August
events and the world crisis and that "Saakashvili and the Georgian
opposition will no longer be able to control it and people will take to
the streets."
When asked how pragmatic it would be for the Georgian opposition to
come to power in this situation, Khaindrava said: "There will be no
other way out, because otherwise Georgia will face a humanitarian
catastrophe."
"After the August events, Georgia virtually lost its statehood and
its fate is now being decided in the capitals of other countries, but it
cannot go on like this," he said.
Khaindrava accused the Russian authorities of "aggression and
occupation of Georgia." "Russia's imperialist policy is interested in
chaos in Georgia, and a second occupation stage is possible to maintain
it," he said, adding that the issue of Georgia's territorial integrity
and the return of Abkhazia and South Ossetia "will not be taken off the
agenda under any circumstances" if the Georgian opposition comes to
power in Georgia.
Commenting on the November 23 attack on the cars carrying the
presidents of Georgia and Poland, Khaindrava called this incident "a
prank by Saakashvili and [Polish President Lech] Kaczynski, who have
long lost the trust of their people in their countries."
Original article posted here.
Sunday, November 16, 2008
O'bummer and the recycled warmongers
Obama transition points to more war and repression
President-elect Barack Obama owes his victory, both in the Democratic primaries and the general election, in large part to the overwhelming hostility of the American people to the years of military aggression, torture, extraordinary rendition, domestic spying and all of the other crimes that will constitute the indelible legacy of the Bush administration.
Thanks to his carefully calibrated criticisms of these policies, as well as his indictment of his principal Democratic opponent, Senator Hillary Clinton, for her October 2002 vote authorizing the US invasion of Iraq, Obama’s “change you can believe in” was perceived by many, both in the US and abroad, as a promise that his election would signal an end to militarism and attacks on democratic rights.
As the transition to the new administration unfolds, however, belief in Obama’s promise of change can be sustained only to the extent that one fails to examine the political record of those who are involved in this process.
For the most part, the Obama-Biden transition team is staffed by veterans of the Clinton administration, associated with the US wars in the Balkans and the policy of regime change in Iraq that set the stage for the war that followed under the Bush presidency.
Symbolic of this relationship is Obama’s decision to send Clinton’s former secretary of state, Madeleine Albright, to this weekend’s Group of 20 meeting in Washington as his personal emissary. Confronted in a 1996 interview on the CBS News program “60 Minutes” with the fact that US sanctions against Iraq had led to the deaths of half a million Iraqi children, Albright replied, “It’s a hard choice, but the price, we, think, is worth it.” She subsequently became a key architect of the US-backed dismemberment of Yugoslavia and the subsequent war against Serbia, which was marked by the widespread bombing of civilian targets. Such is Obama’s face to the world.
In terms of the military policy of an incoming Obama presidency, the most telling indication of the narrow character of the change that can be anticipated are the persistent reports that Bush’s defense secretary, Robert Gates, may be kept at his post after the change in administrations.
Citing two of the president-elect’s advisers, the Wall Street Journal reported Tuesday that “President-elect Barack Obama is leaning toward asking Defense Secretary Robert Gates to remain in his position for at least a year.”
The retention of Gates, as the Journal points out, would send the clearest signal of essential continuity with the militarist foreign policy of the Bush administration. “Like the president-elect, Mr. Gates supports deploying more troops to Afghanistan,” the paper noted. “But the defense secretary strongly opposes a firm timetable for withdrawing American forces from Iraq, and his appointment could mean that Mr. Obama was effectively shelving his campaign promise to remove most troops from Iraq by mid-2010.”
The substantial support within the Democratic leadership for keeping Gates on was expressed last weekend by Senate Majority Leader Harry Reid (Democrat of Nevada) in an interview with CNN. “Why wouldn’t we want to keep him?” said Reid. “He’s never been a registered Republican.”
The other figure most often cited as a potential pick as defense secretary is former Clinton-era Navy Secretary Richard Danzig. Last June, Danzig delivered his own endorsement for retaining Gates, telling the Times of London, “My personal position is Gates is a very good secretary of defense and would be an even better one in an Obama administration.”
Whether Gates stays or goes, Obama’s selection of key personnel on his Pentagon transition team signals that the incoming administration “will handle Iraq and Afghanistan differently from the Bush administration—but will stop well short of a complete restructuring of American military strategy in the two war zones,” the Journal’s Yochi Dreazen reported in a subsequent column.
The co-leader of this team, Michele Flournoy, who was in the Defense Department under Clinton, is the current president of the Center for New American Strategy, a bipartisan think tank on military policy. She has publicly opposed the idea of setting a fixed timetable for withdrawing US troops from Iraq. In March 2007, she co-wrote a position paper on Iraq for the center, declaring, “The US has enduring interests in that besieged country and the surrounding region, and these interests will require a significant military presence there for the foreseeable future.”
Another prominent member of the transition team is Sarah Sewall, a Harvard University “human rights” specialist who served as an adviser to Gen. David Petraeus in Iraq and participated in the drafting of the military’s counterinsurgency field manual.
Also serving as senior adviser to the Pentagon transition effort is Sam Nunn, who was chairman of the Senate Committee on Armed Services from 1987 to 1995. A right-wing Democrat and cold warrior, Nunn left the Senate after leading a campaign against President Bill Clinton over the proposal to lift the ban on gays serving openly in the military.
The character of this transition team is in keeping with the real intentions of the incoming Obama administration: the continued occupation of Iraq by tens of thousands of US troops and a sharp escalation of the ongoing colonial war in Afghanistan.
The same picture emerges with the transition team at the Central Intelligence Agency. According to published reports, the leading figure in that effort is John Brennan, who headed up what is now known as the National Counter-Terrorism Center and previously served as CIA deputy executive director and former CIA Director George Tenet’s chief of staff. He left the agency in 2005.
It must be assumed that Brennan, a senior operator in the so-called global war on terrorism, was intimately familiar with and involved in decisions to carry out torture, assassinations, extraordinary rendition and domestic spying that were implemented during his tenure at the CIA.
Also figuring prominently in Obama’s intelligence transition team is Jamie Miscik, who headed the CIA’s analytical operations under Tenet. She played a leading role in manufacturing the phony intelligence about Iraqi “weapons of mass destruction” and ties to Al Qaeda that was used to sell the war, and in suppressing reports from agency analysts that rejected both claims as unfounded. After leaving the agency at the end of 2004, she found a lucrative—though relatively short-lived—position as the head of global sovereign risk analysis at the now-bankrupt Wall Street firm Lehman Brothers.
While on the campaign trail, Obama on occasion denounced the Bush administration’s intelligence abuses—warrantless wiretapping, waterboarding, indefinite detention without trial—but when it came to a vote in the Senate last summer, he supported vastly expanded domestic spying powers for the National Security Agency and retroactive immunity for the telecom companies that collaborated with the Bush administration in carrying out the illegal wiretapping.
As with Gates, it is not ruled out that those in charge of US intelligence under Bush will stay on under Obama. Director of National Intelligence Michael McConnell and CIA Director Michael Hayden have both indicated they are prepared to remain at their posts in the incoming Democratic administration. McConnell, who gave Obama a presidential-style intelligence briefing last week, described the president-elect’s team as “very smart, very strategic.”
While Obama’s overall transition chief, John Podesta, stressed last weekend that the incoming president would swiftly repeal a number of executive orders issued by the Bush administration, the specific ones he cited—stem cell research, domestic oil drilling, etc. —did not include the multiple directives authorizing US military and intelligence forces to carry out acts of aggression around the world.
Given that Obama has vowed to escalate cross-border raids against Pakistan and prosecute the so-called war on terror—the pretext used to justify Washington’s use of military force to dominate the oil-rich regions of the globe—he will in all likelihood adopt these orders as his own.
It has been less than two weeks since Obama was swept to victory in the presidential election by a wave of popular hostility to the Bush administration. Yet the actions of the president-elect and his advisers are already making it clear that the longing of millions of Americans for an end to the growth of US militarism and international criminality are not to be realized after the inauguration in January.
Original article posted here.
Friday, November 14, 2008
Looks like there would be a down side for Obama not negotiating . . . (Hint: Get rid of the Polish and Czech missiles)
By ALAN CULLISON
MINSK, Belarus -- President Alexander Lukashenko is in talks with Moscow about placing in Belarus advanced Iskander missiles that could hit targets deep inside Europe.
President Alexander Lukashenko of Belarus, left, who met Oct. 26 near Moscow with Russian President Dmitry Medvedev, says that Belarus would like to deploy missiles even if it doesn't reach an agreement with Moscow.
The talks raise the ante in the debate over a U.S. plan to deploy missile defense in Europe. They also complicate Western hopes for warmer ties with Belarus, which some in the U.S. and Europe hope could help to counterbalance an increasingly hostile Kremlin.
In an interview with The Wall Street Journal, Mr. Lukashenko said that he would like to see closer relations with the West but that he sympathizes with Russia on two flashpoints that have rocked relations -- the conflict in Georgia and U.S. plans to place antimissile systems in Europe to counter a potential threat from Iran.
Mr. Lukashenko said he "absolutely supports" Russia's plans to place Iskander missiles in Kaliningrad that would target the U.S. missile system. Kaliningrad is a Russian enclave in Europe that borders NATO members Poland and Lithuania, and missiles there could reach the proposed U.S. missile sites in Poland.
Mr. Lukashenko said Russia also had proposed putting Iskander missiles in Belarus, which is situated between Russia and Poland. And if a deal on the issue isn't reached, Belarus itself would like to deploy the missiles, he said.
"Even if Russia does not offer these promising missiles, we will purchase them ourselves," said Mr. Lukashenko, who said the technology for the Iskander optics and fire-control systems comes from Belarus. "Right now we do not have the funds, but it is part of our plans -- I am giving away a secret here -- to have such weapons."
Analysts said it is far from clear that Russia would really need to place missiles inside Belarus. The Kremlin has offered to give up its Kaliningrad plans if Washington drops its missile-defense system. Mr. Lukashenko's missile ambitions also could be a bargaining chip in his maneuvering between Russia and the West.
Though closely allied with and heavily dependent on Moscow, Mr. Lukashenko, a former collective-farm boss who has kept a tight grip on Belarus since he was elected president 14 years ago, has resisted the Kremlin's embrace.
But financial necessity may be tugging harder at Minsk than before. On Wednesday, Russia announced that it agreed to grant Belarus a $2 billion stabilization loan to shore up the government's finances, which have been strained by the credit crisis.
Under loan terms, Belarus agreed to pay for future oil and gas debts in rubles, a major priority of the Kremlin, which has sought to expand the use of the Russian currency beyond its borders.
Advisers to Mr. Lukashenko said he has lately put out feelers to improve relations with the U.S. and Europe, which slapped his government with sanctions in 2006 after he was accused of rigging his re-election. Sanctions were eased this year, after Mr. Lukashenko ordered the release of some political prisoners.
Like other leaders of former Soviet states, he has resisted Moscow pressure to side with the Kremlin in its conflict with Georgia by recognizing the breakaway regions of South Ossetia and Abkhazia. So far the only countries to confer recognition are Russia and Nicaragua.
But he signaled he may tip toward Moscow on the issue and echoed Russia's argument that the West paved the way for the independence of Georgia's breakaway regions by recognizing Kosovo.
Original article posted here.
Lukashenko, in His Own Words
Below, excerpts from Belarus President Alexander Lukashenko's interview with The Wall Street Journal Tuesday. The interview was conducted in Russian, and translated by the Journal.
On the release of political opponent Alexander Kozulin earlier this year:
"The West perceived this as some kind of step toward democracy. You are welcome, thank you very much. You know, strictly between us, sometimes I think if they could find five or six more political prisoners here and told us to free them, and that then perhaps we would make a few more steps forward, we would do it readily. We could free even more. But they haven't found any more."
On the possibility of recognizing South Ossetia and Abkhazia:
"If you [the West] recognized Kosovo, why not recognize Abkhazia? I don't see any problems here. There is a precedent[hellip] Europe and America understand our position and our situation. And I will be honest, they are no longer pushing it as rigidly with us as before. So I don't think there would be negative repercussions for our relations or the like. I think this question is finished. It is no longer as acute as it was two months ago."
On the financial crisis:
"And I warned the Americans and others. No one listened to me. As it turned out, I was right. Now in America they are talking about an alternative to this ultraliberal market system, where everything is allowed, where you can eat more than what you make, and spend more than what you earn."
On Barack Obama:
"I look at Obama, a young man, a good-looking person. That is my first impression, I feel sorry for him. He looks 100% like Lukashenko, when I came to power after the downfall of the Soviet Union. The store shelves were empty, a severe financial crisis."
Monday, October 27, 2008
China targets second prong of US global strength (after nuclear arsenal)
BEIJING (Reuters) - The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.
The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.
A meeting between Asian and European leaders, starting on Friday in Beijing, presented the perfect opportunity to begin building a new international financial order, the newspaper said.
The People's Daily is the official newspaper of China's ruling Communist Party. The Chinese-language overseas edition is a small circulation offshoot of the main paper.
Its pronouncements do not necessarily directly voice leadership views. But the commentary, as well as recent comments, amount to a growing chorus of Chinese disdain for Washington's economic policies and global financial dominance in the wake of the credit crisis.
"The grim reality has led people, amidst the panic, to realize that the United States has used the U.S. dollar's hegemony to plunder the world's wealth," said the commentator, Shi Jianxun, a professor at Shanghai's Tongji University.
Shi, who has before been strident in his criticism of the U.S., said other countries had lost vast amounts of wealth because of the financial crisis, while Washington's sole concern had been protecting its own interests.
"The U.S. dollar is losing people's confidence. The world, acting democratically and lawfully through a global financial organization, urgently needs to change the international monetary system based on U.S. global economic leadership and U.S. dollar dominance," he wrote.
Shi suggested that all trade between Europe and Asia should be settled in euros, pounds, yen and yuan, though he did not explain how the Chinese currency could play such a role since it is not convertible on the capital account.
A two-day Asia-Europe Meeting (ASEM) of 27 EU member states and 16 Asian countries was set to open on Friday. Though few analysts expect much in the way of concrete agreements, Shi said it could prove momentous.
"How can Europe and Asia grasp each other's hands and together confront the once-in-a-century global financial crisis sparked by the U.S.; how can they construct a new equitable and safe international financial order?" he said.
"The world is waiting for this Asian-European meeting to achieve big results in financial cooperation."
Saturday, October 18, 2008
Another resource hotspot in the grand chessboard
By M K Bhadrakumar
Turkmenistan knows better than any other country that predators will go to any extent to take away its valuable possessions. Five successive empires - Scythian, Parthian, Ywati, Hun and Turkmen - invaded the area to locate the "Akhal" oasis nestled in the foothills of the Kopet Dag mountains in southern Turkmenistan, and laid waste everything that came across their way until they could take away the treasured Akhal-Teke horses as spoils of war.
The ancient race of Akhal-Teke horses, dating to 2,400 BC, were much fancied for their elegance, strength, stamina and beauty. Alexander the Great apparently took away with him hundreds of these horses as prized trophies during his campaign in Central Asia.
So Turkmenistan's collective memory will be stirred by the announcement on Monday that the country may have in the Yoloten-Osman deposits one of the world's four or five largest gas fields.
British consultancy firm Gaffney, Cline & Associates (GCA), making the announcement in Ashgabat regarding the first results of its audit of Turkmen gas reserves, said its low estimate under the established international and classification system is that the fields may have a minimum 4 trillion cubic meters of gas and as much as a staggering 14 trillion cubic meters.
This catapults Yoloten-Osman, in the southeast of the country, to the status of Turkmenistan's No 1 gas field, overtaking even the fabulous Dowalatabad, whose reserves it will exceed by at least five times. It should be kept in mind that many other of Turkmenistan's many gas fields have yet to be fully explored, and the GCA has just made its initial findings known.
Without doubt, Turkmenistan is closing its gap with Russia and Iran, hitherto listed as having the world's largest and second-largest gas reserves at 48 trillion cubic meters and 26 billion cubic meters, respectively. If the GCA results are confirmed, Turkmenistan will have reserves just 20% lower than that of Russia and outstrip Iran by far.
It seems the late Turkmenistan president Saparmurat Niyazov stands vindicated. Just before he died in December 2006, Niyazov remarked that Turkmenistan held reserves that were adequate to export 150 billion cubic meters (BCM) of gas for the next 250 years. The world, including the then visiting German foreign minister Frank-Walter Steinmeier, didn't take Niyazov's statement seriously.
In March, Niayov's successor, Gurbanguly Berdimukhamedov, ordered the GCA audit to clear doubts about Turkmenbashi's controversial claim. In a British understatement, GCA manager Jim Gillet said in Ashgabat, "Given the huge gas reserves, it is now clear that whatever the results of any final clarification, I can confirm that there is more than sufficient gas to fulfill Turkmenistan's existing contract commitments." Turkmenistan has contracts to supply Russia with around 50 bcm annually, China with 40 bcm and with Iran 8 bcm.
Without doubt, the maths of energy security is being reset. October 13 will stand out as a watershed in the race for Caspian energy. Like the shy Akhal-Teke, Turkmenistan comes from behind and surges ahead on the race tracks, captivating the world audience, especially the main wagerers - Russian, European, Chinese and the ubiquitous Americans. For these seasoned hands betting on the race track, this will also be pari-mutuel wagering, as the French would say, meaning "among ourselves", with betting against each other and not against the race track.
Turkmenistan is undoubtedly a vital partner for Russia in gas supplies. The two countries have an agreement regarding gas prices and the volume of gas supplies for 2007-2009. Ashgabat has been extracting higher and higher prices from Russia for its gas supplies. The price was raised to $100 per 1,000 cubic meters last year from the level of $65. Then it was further raised to $130 for January-June 2008 and to $150 in the second half of 2008.
Ashgabat has been playing on the nerves of Russian energy giant Gazprom and its desperate need for Turkmen gas to meet its export obligations in the European market, which accounts for 70% of the Russian company's total revenue at the moment. Gazprom sells close to two-thirds of Russia's 550 bcm annual gas production in the rapidly growing domestic market, which compels it to secure Turkmen supplies to meet the contracted European commitments.
Russian newspaper Kommersant made an innocuous-sounding reference on Wednesday, quoting a source in Gazprom to the effect that the Russian monopoly's famous July 25 agreement with Turkmengaz does not involve Yoloten-Osman. It seems, in other words, that Russia held in its hands a chimera when it fancied that the July 25 agreement put Gazprom in complete charge of all of Turkmenistan's exports. Surely, that is proving to be a misconception of Himalayan proportions.
For Russia, arguably, the game now starts all over again. First and foremost, it is no longer the superpower in the world of natural gas as was widely regarded until last weekend. Turkmenistan is, unquestionably, also a gas superpower of comparable muscle power to Russia.
Again, Russia will need to come terms with a "multipolar" world of gas-producing countries. It needs to revisit its entire strategy toward consolidating a world gas market. The prospect of a gas cartel - a gas OPEC - materializing any time soon now recedes into the far background. There will be disappointment in Tehran that the idea will have to be thrown out of the window, but a collective sigh of relief can be heard in European capitals.
More important, Russia will have to rework its bonding with its Central Asian partners. Turkmenistan was a vital link in the Moscow-led energy chain of Central Asia's leading gas-producing countries - the others being Uzbekistan and Kazakhstan. Last year, Russia worked out plans - involving Kazakhstan and Turkmenistan - for a gas pipeline along the Caspian Sea's eastern coast for handling Turkmenistan's anticipated exports. In September, during Russian Prime Minister Vladimir Putin's visit to Tashkent, Uzbekistan agreed to the Russian plan for an expansion of the Central Asian gas pipeline system for handling anticipated Turkmen gas exports.
These initiatives were predicated on the assumption that Russia must gear up to handle all of Turkmen gas exports. During last year, Russia gained rights over the gas exports of Turkmenistan, Kazakhstan and Uzbekistan on the basis of its offer to make purchases at "European prices". The entire economics and logistics behind these complicated webs of Russian gas diplomacy in Central Asia now require updating - and rapid updating since, unlike previously, Russia's competitors by now know its tactics and work ethics and there is consequently now no more surprise element.
The immediate Russian concern will be regarding the Nabucco gas pipeline proposal mooted by the European Union and backed by the United States as an energy project that would somewhat reduce Europe's dependence on Russian gas supplies. Nabucco envisages the dispatch of Caspian gas to the European market via an energy hub in Turkey bypassing Russian territory. Nabucco's viability depends on access to Turkmen (or Iranian) gas supplies.
With GCA's announcement on Monday, the doubts have been dispelled at least in one direction - Turkmenistan indeed does have the capacity to feed Nabucco with all the gas it needs. This comes at an awkward time for Moscow when its rival project, South Stream, which aims at further tying up the European market with Russian gas supplies, is struggling to take off.
Nabucco will give South Stream a run for its money. If it materializes, it could also be a setback for the broader thrust of Russian diplomacy, which in the past two years has aimed at cultivating the countries in the southern tier of the European market - Austria, Italy, Greece and the Balkan and Central European countries. There is already immense pressure from the US on the South Stream's transit countries to back off from far-reaching energy collaboration with Russia.
Geopolitics is just one step behind. Russia hoped to temper the eastward expansion of the North Atlantic Treaty Organization's expansion and the US designs to roll back the Russian presence in the Black Sea region by working out a system of energy dependence with the US's allies in the region. Moscow recently offered a $4 billion loan to Ukraine for establishing two nuclear power plants in its western region. This is despite the pro-US stance of Ukrainian President Viktor Yushchenko.
Moscow's strategy was working well. In a telling remark on Tuesday, at a joint press conference with Georgian President Mikheil Saakashvili, president of the European Commission Jose Manuel Barroso virtually acknowledged the effectiveness of the Russian diplomacy in Europe. He said that if the EU is moving toward resuming negotiations with Russia on a new partnership deal even in the aftermath of the Caucasus conflict, that was not a "gift" for Russia but because it was in the interests of Europe. He said EU had economic, financial and investment interests to safeguard and needed to work out cooperation with Moscow in maintaining energy security.
"I think it is in the interest of the EU to keep the dialogue with Russia to promote stability in Europe," Barroso underlined in a virtual snub to the US doctrine of isolating Russia over the Caucasus crisis.
It is not only with the European countries but also with its partners in the Commonwealth of Independent States (CIS) that Russian diplomacy has effectively used energy as a calculus for generating political and strategic influence. At the very least, with the emergence of Turkmenistan as an energy superpower, the "co-relation of forces" within the CIS undergoes a change. This is not only for Russia but also for the other countries which consider themselves as leading players in Central Asia and the Caspian - Kazakhstan, Uzbekistan and Azerbaijan (all of them have uneasy "partnerships" historically with post-Soviet Turkmenistan).
But Russia also has factors of advantage. It has a surplus of hard cash at a time when the Western banking system is collapsing. Gazprom can use this clout of financial liquidity as a bargaining chip to outsmart Western oil companies cultivating favor in Ashgabat. A Russian business daily reported on Tuesday that Putin is forthwith providing $9 billion to Russia's four largest oil and gas companies to "refinance" their foreign debt in the context of the meltdown of the Western banking system.
The government had earlier announced $5.5 billion in tax breaks for the Russian energy companies. The four Russian oil majors had addressed a letter to Putin last month asking for a total of $80 billion to pay off their foreign debts and finance strategic projects. Putin responded on Friday by saying the government would disburse up to $50 billion.
Now, how many Western governments can match Russia providing such backing out of sovereign wealth funds to its oil majors at the present time of global credit crunch? The decision-makers in Ashgabat are bound to factor in these hard realities when they weigh the relative merits of competing offers from Gazprom and Western oil and gas companies.
There is also a huge psychological factor. In the idiom of wagering, it is always the case that when you are essentially betting against all else, your chances of winning depend on making a more informed decision. Simply put, Moscow has multiple lines open to Ashgabat dating to the Soviet era.
All the same, the latest development provides the US with a window of opportunity to play itself back into the race for Caspian energy after Russia repeatedly outsmarted it in recent years. Clearly, there is now no dearth of a resource base if Washington is to push trans-Caspian gas pipeline projects.
The Turkmen government announced last week that it intended to increase its gas exports to 125 bcm annually by 2015. From the US perspective, that target seems reasonable enough to make a robust pitch for Nabucco in the short term even though Yoloten's gas will take time to be extracted for exports.
The US will make a pitch on behalf of Western companies as regards providing expertise. The deck has already been cleared. Washington no more harps on Turkmenistan's human-rights record, nor is it appealing to Western governments to pressure Ashgabat into making fundamental democratic reforms. As an American commentator put it, "It has become clear this year that the need for energy supplies has pushed rights concerns to the background in discussions with the Turkmen government".
Such pragmatism is nothing new to US diplomacy and Ashgabat can be expected to take note. Surely, the graph of US expectations is curving upward sharply. Washington would have had prior knowledge of the GCA's audit. A US expert on the Caspian wrote, "The implications of the GCA audit results are momentous for European and trans-Atlantic energy security ... Brussels and Washington can encourage Western companies to become involved in developing South Yoloten-Osman, Yaslar and other Turkmen gas fields with westbound pipeline outlets via Azerbaijan to Europe. This could significantly counterbalance Russian Gazprom's dominance in European markets."
Even so, he also acknowledged, "Conversely, the Kremlin will undoubtedly seek privileged access for Gazprom to the newly ascertained Turkmen resources, acting preemptively against the West. By combining those new resources (on top of the already committed Turkmen inputs) with its own volumes, Gazprom would boost its dominance in Europe to impregnable levels for a long time to come."
There is also much hyperbole in these expectations. The heart of the matter is that the US experts do not spot a dark horse. It is far too presumptuous to choreograph the battle scene in such straightforward terms of Russia versus the West. There is yet another serious player watching the fabulous Turkmen gas fields from the east - China.
US experts and cold warriors are obsessed with battling resurgent Russia on the beaches of the Caspian Sea, the mountains of the Caucasus and the steppes of Central Asia. But they are underestimating China's potential as a market for Turkmen gas and as a competitor to European countries.
Ashgabat is already committed to delivering up to 40 bcm gas annually to China through a $2.6 billion Central Asia-China gas pipeline that Beijing is financing. PetroChina (a subsidiary of China National Petroleum Corporation) and China National Oil and Gas Exploration and Development Company (CNOGEDC) have a 50-50 sharing of the project's costs and have formed the Trans-Asia Gas Pipeline Company Ltd as a wholly owned subsidiary for this purpose.
Interestingly, China is collaborating with local companies in Kazakhstan and Uzbekistan for the construction, which is an altogether new and interesting experience for the Central Asian countries.
China is a latecomer in Turkmenistan but it has already overtaken the West and is second only to Russia in that country. At the time of the signing of the July 2007 Sino-Turkmen agreement on supply of Turkmen gas, US analysts pooh-poohed the agreement as a typical ploy by Ashgabat to drive a hard bargain vis-a-vis Russian and Western companies bidding for contracts. They overlooked that China was dead serious.
CNOGEDC is far from a novice; its expertise in oil and gas exploration work is well known in diverse markets, not only in the Caspian (Kazakhstan and Azerbaijan) but also in Indonesia, Algeria, Oman, Niger, Chad, Ecuador, Peru, Venezuela and Canada.
China holds many trump cards. First, it is a "virgin" market with a strong urge to expand. Beijing plans to raise its ratio of natural gas consumption to total energy use by 2.5 percentage points to 5.3% by 2010. This is still far below the global average of 25% and is indicative of China's potential as a market. Two, China carries no imperial baggage - unlike the US or Russia. It is not prescriptive. It is not peddling "color revolution". China doesn't hector on free market or human rights. The Central Asian countries find such an attitude extremely comfortable.
Three, China has a game plan. It will not appear avaricious, like Western companies. Energy cooperation will invariably form part a broad Chinese thrust in the direction of mutually beneficial economic cooperation. Thus, China will not hesitate to offer substantive assistance to Turkmenistan. Four, China will not overtly compete. Instead, China will most likely work with Russia on development packages to increase Turkmen gas production.
In contrast, the cold warriors in the US visualize the Western companies as lone rangers on the Central Asian steppe. In fact, the entire European energy diplomacy in the Caspian suffers almost fatally from the spirit of rivalry with Russia that Washington injects into it. Wherever German, Italian and French oil companies have shaken off the US tutelage and begun working with Russia, they have done far better. China's energy diplomacy in Central Asia and the Caspian offers a model for the European oil majors.
Of course, it will be fascinating to see how China learns from its own history. In 101 BC, Han emperor Wu-Ti was absolutely captivated by Akhal-Teke, which he called "heavenly blood-sweating horses". He wanted to buy a stallion as a model for making a horse statue made of gold in his palace. But the Turkmen for some obscure reason, rejected the Han request. Wu-Ti retaliated by dispatching an army of 80,000 to the inhospitable Turkmen deserts where the Akhal-Teke roams in abandon. The Chinese simply got hold of 30 purebred horses and some 3,000 partbreds and made their way back to Wu-Ti.
True, China has been absolutely mesmerized by the Akhal-Teke. Tu Fu, an 8th century Chinese poet wrote
The Ferghana horse is famed among nomad breeds.
Lean in build, like the point of a lance;
Two ears sharp as bamboo spikes;
Four hoofs light as though born of the wind.
Heading away across the endless spaces,
Truly, you may entrust him with your life.
All the same, today's China is unlikely to do what came naturally to Wu-Ti. Even if Ashgabat were to tell China that it cannot have the entire output of the Yoloten-Osman gas fields, Beijing will unlikely remonstrate. It will gladly settle for sharing the output with its friends in Russia or the West if that's indeed what Ashgabat wants.
Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey.
Original article posted here.
Monday, September 08, 2008
Fanning the Georgian flames
By Jim Lobe
WASHINGTON - As if the outgoing administration of US President George W Bush didn't already have enough on its plate, the question of whether and how to re-arm Georgia in the aftermath of its thrashing last month by Russia is moving steadily up an increasingly crowded foreign policy agenda.
Moscow has already signaled that any move to supply the government of President Mikheil Saakashvili with the advanced weapons that he has long sought - including the powerful hand-held anti-tank rockets and Stinger surface-to-air missiles which contributed heavily to Russia's defeat in Afghanistan - will significantly increase tensions with Washington, which soared to a post-Cold War high in the wake of the Russian intervention.
But besides pledging to continue its push for Georgia's admission to the North Atlantic Treaty Organization (NATO)- something with which Washington's European allies would have to go along with - the Bush administration has so far declined to make any promises in regard to military aid.
Indeed, even Vice President Dick Cheney, who had reportedly pushed hard for sending such advanced equipment to Georgia even before last month's war, refrained from making any promises last Thursday during his high-profile visit to the Georgian capital.
"Over time, I'm sure, people will look at what happened with the military here and what the needs are," an official who accompanied Cheney on his four-hour stay in Tbilisi told US reporters on the vice president's plane. "But I think the focus for the moment is on the humanitarian and long-term economic needs."
The issue is nonetheless likely to loom large in the coming months, particularly if foreign policy plays a key role in the ongoing presidential election campaign, which moved into high gear on Friday with the end of the Republican National Convention.
In his acceptance of the Republican presidential nomination on Thursday night, Senator John McCain called for "solidarity" with Georgia in a speech that was remarkably light on foreign policy issues. From the moment that hostilities between Georgia and Russia began, McCain, who considers Saakashvili a friend and who he spoke with frequently by phone during the crisis, has consistently called for stronger action against Russia than the administration has been willing to take, including expelling it from the Group of Eight (G-8) nations.
While McCain has not explicitly endorsed filling Saakashvili's wish list, some of his key neo-conservative advisers, such as Max Boot of the Council on Foreign Relations and Frederick Kagan of the American Enterprise Institute, have pressed the administration to take such a course. Their appeal has been supported by two of McCain's closest senate colleagues.
"Specifically, the Georgian military should be given the anti-aircraft and anti-armor systems necessary to deter any renewed Russian aggression," wrote independent Democrat Joe Lieberman and Lindsay Graham, in the Wall Street Journal late last month. "We avoided giving the types of security aid that could have been used to blunt Russia's conventional onslaught. It is time for that to change," according to the two senators.
Their advice was published just as Russian President Dmitry Medvedev formally recognized the two breakaway Georgian provinces of South Ossetia and Abkhazia as independent states, in defiance of a personal appeal by Bush for him not to do so.
While Bush and other top administration officials strongly denounced Medvedev's move - Cheney on September 4 called it "an illegitimate, unilateral attempt to change [Georgia's] borders by force". The administration has so far moved relatively cautiously, ignoring appeals for stepped-up military aid to rebuild Georgia's battered forces and upgrade its weaponry. The emphasis instead has been on the delivery of humanitarian and economic assistance.
"The first order of business should not be some sort of punishment," Assistant Secretary of State for European Affairs Daniel Fried told the Washington Times. "Russia has to decide how much it wants to isolate itself from the world. We don't want to have a bad relationship with Russia. We've never wanted that."
So far, US actions have been largely limited to its pledge to push Georgia's and Ukraine's membership in NATO, effectively shelving Russia ascension to the World Trade Organization, and to suspend a bilateral strategic dialogue and review a number of other bilateral military cooperation agreements.
In the immediate aftermath of the five-day war, Washington also quickly sealed a long-pending bilateral accord that would permit it to build missile defense systems in Poland. That move drew particularly harsh criticism from Moscow, which has also reiterated a vow to strongly oppose any efforts to admit Georgia and Ukraine to NATO - a military alliance which it sees as aimed at encircling and containing Russia.
Aside from those moves the administration has focused on supplying humanitarian and economic assistance to Georgia - albeit via military transport aircraft and warships in the Black Sea. In conjunction with the European Union (EU) it has also helped arrange a US$750 million line of credit to help Tbilisi finance the repair of the substantial infrastructural damages it incurred in the war.
In addition, Washington has pledged $1 billion in economic and reconstruction assistance, more than half of which will be sent over the next five months. That amount would make the Caucasian nation the fourth biggest US aid recipient after Israel, Iraq, and Egypt.
The administration's relative caution, particularly with respect to military aid, appears motivated by several factors.
Increasing tensions with Moscow further could seriously jeopardize other top foreign policy interests, according to senior officials and independent analysts, including Washington's hopes for applying additional pressure, particularly through the UN Security Council, on Iran to halt its nuclear program. It could prompt Russia to suspend an agreement that lets NATO use Russian and Central Asian bases and air space to supply its troops in Afghanistan.
A more aggressive stance could also harm relations with key European allies, such as Germany, France, and Italy, which are eager to ramp down tensions, in part due to their own heavy investments in Russia's economy and dependence on gas supplies.
US officials are also reluctant to address the question of additional military aid in light of the Georgian armed forces' poor performance during the war - the army retreated in chaos at the first contact, while all of its warships were destroyed in port - and what some of them describe as the recklessness of Saakashvili himself in ordering the attack on Tskhinvali that triggered Russia's offensive.
Jim Lobe's blog on US foreign policy, and particularly the neo-conservative influence in the Bush administration, can be read at http://www.ips.org/blog/jimlobe/.
Original article posted here.
Thursday, September 04, 2008
Updates on the Grand Chessboard
The Bush Administration Falters in a Geopolitical Chess Match
By Michael T. Klare
"TomDispatch" -- - Many Western analysts have chosen to interpret the recent fighting in the Caucasus as the onset of a new Cold War, with a small pro-Western democracy bravely resisting a brutal reincarnation of Stalin's jack-booted Soviet Union. Others have viewed it a throwback to the age-old ethnic politics of southeastern Europe, with assorted minorities using contemporary border disputes to settle ancient scores.
Neither of these explanations is accurate. To fully grasp the recent upheavals in the Caucasus, it is necessary to view the conflict as but a minor skirmish in a far more significant geopolitical struggle between Moscow and Washington over the energy riches of the Caspian Sea basin -- with former Russian President (now Prime Minister) Vladimir Putin emerging as the reigning Grand Master of geostrategic chess and the Bush team turning out to be middling amateurs, at best.
The ultimate prize in this contest is control over the flow of oil and natural gas from the energy-rich Caspian basin to eager markets in Europe and Asia. According to the most recent tally by oil giant BP, the Caspian's leading energy producers, all former "socialist republics" of the Soviet Union -- notably Azerbaijan, Kazakhstan, Turkmenistan, and Uzbekistan -- together possess approximately 48 billion barrels in proven oil reserves (roughly equivalent to those left in the U.S. and Canada) and 268 trillion cubic feet of natural gas (essentially equivalent to what Saudi Arabia possesses).
During the Soviet era, the oil and gas output of these nations was, of course, controlled by officials in Moscow and largely allocated to Russia and other Soviet republics. After the breakup of the USSR in 1991, however, Western oil companies began to participate in the hydrocarbon equivalent of a gold rush to exploit Caspian energy reservoirs, while plans were being made to channel the region's oil and gas to markets across the world.
Rush to the Caspian
In the 1990s, the Caspian Sea basin was viewed as the world's most promising new source of oil and gas, and so the major Western energy firms -- Chevron, BP, Shell, and Exxon Mobil, among others -- rushed into the region to take advantage of what seemed a golden opportunity. For these firms, persuading the governments of the newly independent Caspian states to sign deals proved to be no great hassle. They were eager to attract Western investment -- and the bribes that often came with it -- and to free themselves from Moscow's economic domination.
But there turned out to be a major catch: It was neither obvious nor easy to figure out how to move all the new oil and gas to markets in the West. After all, the Caspian is landlocked, so tankers cannot get near it, while all existing pipelines passed through Russia and were hooked into Soviet-era supply systems. While many in Washington were eager to assist U.S. firms in their drive to gain access to Caspian energy, they did not want to see the resulting oil and gas flow through Russia -- until recently, the country's leading adversary -- before reaching Western markets.
What, then, to do? Looking at the Caspian chessboard in the mid-1990s, President Bill Clinton conceived the striking notion of converting the newly independent, energy-poor Republic of Georgia into an "energy corridor" for the export of Caspian basin oil and gas to the West, thereby bypassing Russia altogether. An initial, "early-oil" pipeline was built to carry petroleum from newly-developed fields in Azerbaijan's sector of the Caspian Sea to Supsa on Georgia's Black Sea coast, where it was loaded onto tankers for delivery to international markets. This would be followed by a far more audacious scheme: the construction of the 1,000-mile BTC pipeline from Baku in Azerbaijan to Tbilisi in Georgia and then on to Ceyhan on Turkey's Mediterranean coast. Again, the idea was to exclude Russia -- which had, in the intervening years, been transformed into a struggling, increasingly impoverished former superpower -- from the Caspian Sea energy rush.
Clinton presided over every stage of the BTC line's initial development, from its early conception to the formal arrangements imposed by Washington on the three nations involved in its corporate structuring. (Final work on the pipeline was not completed until 2006, two years into George W. Bush's second term.) For Clinton and his advisors, this was geopolitics, pure and simple -- a calculated effort to enhance Western energy security while diminishing Moscow's control over the global flow of oil and gas. The administration's efforts to promote the construction of new pipelines through Azerbaijan and Georgia were intended "to break Russia's monopoly of control over the transportation of oil from the region," Sheila Heslin of the National Security Council bluntly told a Senate investigating committee in 1997.
Clinton understood that this strategy entailed significant risks, particularly because Washington's favored "energy corridor" passed through or near several major conflict zones -- including the Russian-backed breakaway enclaves of Abkhazia and South Ossetia. With this in mind, Clinton made a secondary decision -- to convert the new Georgian army into a military proxy of the United States, quipped and trained by the Department of Defense. From 1998 to 2000 alone, Georgia was awarded $302 million in U.S. military and economic aid -- more than any other Caspian country -- and top U.S. military officials started making regular trips to its capital, Tbilisi, to demonstrate support for then-president Eduard Shevardnadze.
In those years, Clinton was the top chess player in the Caspian region, while his Russian presidential counterpart, Boris Yeltsin, was far too preoccupied with domestic troubles and a bitter, costly, ongoing guerrilla war in Chechnya to match his moves. It was clear, however, that senior Russian officials were deeply concerned by the growing U.S. presence in their southern backyard -- what they called their "near abroad" -- and had already had begun planning for an eventual comeback. "It hasn't been left unnoticed in Russia that certain outside interests are trying to weaken our position in the Caspian basin," Andrei Y. Urnov of the Russian Ministry of Foreign Affairs declared in May 2000. "No one should be perplexed that Russia is determined to resist the attempts to encroach on her interests."
Russia Resurgent
At this critical moment, a far more capable player took over on Russia's side of the geopolitical chessboard. On December 31, 1999, Vladimir V. Putin was appointed president by Yeltsin and then, on March 26, 2000, elected to a full four-year term in office. Politics in the Caucasus and the Caspian region have never been the same.
Even before assuming the presidency, Putin indicated that he believed state control over energy resources should be the basis for Russia's return to great-power status. In his doctoral dissertation, a summary of which was published in 1999, he had written that "[t]he state has the right to regulate the process of the acquisition and the use of natural resources, and particularly mineral resources [including oil and natural gas], independent of on whose property they are located." On this basis, Putin presided over the re-nationalization of many of the energy companies that had been privatized by Yeltsin and the virtual confiscation of Yukos -- once Russia's richest private energy firm -- by Russian state authorities. He also brought Gazprom, the world's largest natural gas supplier, back under state control and placed a protégé, Dmitri Medvedev -- now president of Russia -- at its helm.
Once he had restored state control over the lion's share of Russia's oil and gas resources, Putin turned his attention to the next obvious place -- the Caspian Sea basin. Here, his intent was not so much to gain ownership of its energy resources -- although Russian firms have in recent years acquired an equity share in some Caspian oil and gas fields -- but rather to dominate the export conduits used to transport its energy to Europe and Asia.
Russia already enjoyed a considerable advantage since much of Kazakhstan's oil already flowed to the West via the Caspian Pipeline Consortium (CPC), which passes through Russia before terminating on the Black Sea; moreover, much of Central Asia's natural gas continued to flow to Russia through pipelines built during the Soviet era. But Putin's gambit in the Caspian region evidently was meant to capture a far more ambitious prize. He wanted to ensure that most oil and gas from newly developed fields in the Caspian basin would travel west via Russia.
The first part of this drive entailed frenzied diplomacy by Putin and Medvedev (still in his role as board chairman of Gazprom) to persuade the presidents of Kazakhstan, Turkmenistan, and Uzbekistan to ship their future output of gas through Russia. Success was achieved when, in December 2007, Putin signed an agreement with the leaders of these countries to supply 20 billion cubic meters of gas per year through a new conduit along the Caspian's eastern shore to southern Russia -- for ultimate delivery to Europe via Gazprom's existing pipeline network.
Meanwhile, Putin moved to undermine international confidence in Georgia as a reliable future corridor for energy delivery. This became a strategic priority for Moscow because the European Union announced plans to build a $10 billion natural-gas pipeline from the Caspian, dubbed Nabucco" after the opera by Verdi. It would run from Turkey to Austria, while linking up to an expanded South Caucasus gas pipeline that now extends from Azerbaijan through Georgia to Erzurum in Turkey. The Nabucco pipeline was intended as a dramatic move to reduce Europe's reliance on Russian natural gas -- and so has enjoyed strong support from the Bush administration.
It is against this backdrop that the recent events in Georgia unfolded.
Checkmate in Georgia
Obviously, the more oil and gas passing through Georgia on its way to the West, the greater that country's geostrategic significance in the U.S.-Russian struggle over the distribution of Caspian energy. Certainly, the Bush administration recognized this and responded by providing hundreds of millions of dollars in military aid to the Georgian military and helping to train specialized forces for protection of the new pipelines. But the administration's partner in Tbilisi, President Mikheil Saakashvili, was not content to play the relatively modest role of pipeline protector. Instead, he sought to pursue a megalomaniacal fantasy of recapturing the breakaway regions of Abhkazia and South Ossetia with American help. As it happened, the Bush team -- blindsided by their own neoconservative fantasies -- saw in Saakashvili a useful pawn in their pursuit of a long smoldering anti-Russian agenda. Together, they walked into a trap cleverly set by Putin.
It is hard not to conclude that Russian prime minister goaded the rash Saakashvili into invading South Ossetia by encouraging Abkhazian and South Ossetian irregulars to attack Georgian outposts and villages on the peripheries of the two enclaves. Secretary of State Condoleezza Rice reportedly told Saakashvili not to respond to such provocations when she met with him in July. Apparently her advice fell on deaf ears. Far more enticing, it seems, was her promise of strong U.S. backing for Georgia's rapid entry into NATO. Other American leaders, including Senator John McCain, assured Saakashvili of unwavering U.S. support. Whatever was said in these private conversations, the Georgian president seems to have interpreted them as a green light for his adventuristic impulses. On August 7th, by all accounts, his forces invaded South Ossetia and attacked its capital city of Tskhinvali, giving Putin what he long craved -- a seemingly legitimate excuse to invade Georgia and demonstrate the complete vulnerability of Clinton's (and now Bush's) vaunted energy corridor.
Today, the Georgian army is in shambles, the BTC and South Caucasus gas pipelines are within range of Russian firepower, and Abkhazia and South Ossetia have declared their independence, quickly receiving Russian recognition. In response to these developments, the Bush administration has, along with some friendly leaders in Europe, mounted a media and diplomatic counterattack, accusing Moscow of barbaric behavior and assorted violations of international law. Threats have also been made to exclude Russia from various international forums and institutions, such as the G-8 club of governments and the World Trade Organization. It is possible, then, that Moscow will suffer some isolation and inconvenience as a result of its incursion into Georgia.
None of this, so far as can be determined, will alter the picture in the Caucasus: Putin has moved his most powerful pieces onto this corner of the chessboard, America's pawn has been decisively defeated, and there's not much of a practical nature that Washington (or London or Paris or Berlin) can do to alter the outcome.
There will, of course, be more rounds to come, and it is impossible to predict how they will play out. Putin prevailed this time around because he focused on geopolitical objectives, while his opponents were blindly driven by fantasy and ideology; so long as this pattern persists, he or his successors are likely to come out on top. Only if American leaders assume a more realistic approach to Russia's resurgent power or, alternatively, choose to collaborate with Moscow in the exploitation of Caspian energy, will the risk of further strategic setbacks in the region disappear.
Michael T. Klare is professor of peace and world security studies at Hampshire College and the author, most recently, of Rising Powers, Shrinking Planet: The New Geopolitics of Energy (Metropolitan Books).
Original article posted here.
Wednesday, September 03, 2008
The latest US crony puppet state on the verge of collapse after leading party comes under investigation for arming another crony criminal US puppet.
The Associated Press
Published: September 2, 2008
E-Mail Article
Listen to Article
Printer-Friendly
3-Column Format
Translate
Share Article
Text Size
KIEV, Ukraine: Ukrainian lawmakers voted Tuesday to form a panel to investigate their country's weapons supplies to Georgia following Russia's war with that nation last month.
Ukraine has been a major supplier of weapons to its ally Georgia, whom it backed firmly in the conflict. Ukrainian military officials say the arms supplies are perfectly lawful and will not be halted.
But Valeriy Konovalyuk, a lawmaker from the opposition Party of Regions, which has ties to Moscow, told the legislature Tuesday that he believes Ukraine was engaged in "illegal weapons supplies." He did not elaborate.
The legislature voted to set up a panel to look into the claims.
Last month's military conflict between Georgia and Russia, which ended with Russian troops pushing deep into Georgia and Moscow's recognition of two Georgian breakaway provinces' independence, has deeply divided Ukrainian politicians and the public.
Today in Europe
Georgians eager to rebuild army
Cheney arrives in Azerbaijan
Two Georgians went to war but never got to fight
Pro-Western President Viktor Yushchenko has firmly backed his Georgian counterpart Mikhail Saakashvili and condemned Moscow's actions. Both leaders seek to make their countries NATO members and shed Russia's influence — steps that have angered Moscow. But the opposition Party of Regions, which has ties to Moscow, and the Communists have swung their support behind the Kremlin.
Parliament debated all day Tuesday, but failed to pass a resolution on the conflict, as the president had asked them to.
The issue is especially contentious since many here worry that Ukraine, where the Russian Black Sea Fleet is based, could be Russia's next target.
Analysts say that a war between Russia and Ukraine is highly unlikely. While Georgia is a small nation of 4.6 million people, Ukraine is roughly the size of France, with a population of 46 million.
Russia also relies on Ukraine for transporting its natural gas to European consumers, and it is Ukraine's energy supplier and top trading partner. But Ukraine is likely to come under immense economic and diplomatic pressure from Moscow to give up its NATO aspirations.
British Foreign Secretary David Miliband was here recently to offer support, and U.S. Vice President Dick Cheney is expected to visit soon.
Orignal article posted here.
Sunday, August 31, 2008
More mongering of EU trying to recreate New Cold War -- Mission accomplished
UK warns over 'Russia aggression' | ||
UK prime minister Gordon Brown has said Nato and the EU must reassess their relations with the Kremlin to prevent further "Russian aggression". His comments came amid fears Russia could cut oil and gas flows in the row over Georgia. Mr Brown, writing in the Observer, urged the EU to do a "root and branch" review of relations with the Kremlin. On Saturday President Dmitry Medvedev and Mr Brown spoke by phone as Russia moved to ease tensions with Europe. Rights and responsibilities Mr Brown wrote in Sunday's Observer newspaper one day ahead of a summit of European heads of state to discuss the South Ossetia crisis. The conflict in the region began on 7 August when Georgia tried to regain control of South Ossetia by force, which was followed by a Russian counter-attack deep into Georgia. Mr Brown said: "When Russia has a grievance over an issue such as South Ossetia, it should act multilaterally by consent rather than unilaterally by force." He went on: "My message to Russia is simple. If you want to be welcome at the top table of organisations such as the G8, OECD and WTO, you must accept that with rights come responsibilities.
"We want Russia to be a good partner in the G8 and other organisations, but it cannot pick and choose which rules to adhere to. "That is why I will argue tomorrow that Russia should accept Georgia's territorial integrity and international mechanisms for addressing these conflicts, and withdraw troops to their previous positions. "And, in the light of Russian actions, the EU should review - root and branch - our relationship with Russia." He added: "We are also reflecting on the Nato response. We must re-evaluate the alliance's relationship with Russia, and intensify our support to Georgia and others who may face Russian aggression." Mr Brown also said the summit "must add urgency to the work on Europe's energy agenda". "We must more rapidly build relationships with other producers of oil and gas," Mr Brown said. 'Very clear message' The prime minister said he had told Mr Medvedev to expect a "determined response" from European leaders. Shadow foreign secretary William Hague said European states should resist a rush to sanctions and instead exert long-term pressure. "It is very important for the EU now to reassess its relationship with Russia and send a very clear message," he told Sky News. "I do not think the measures looked at tomorrow should be cheap or quick. This requires clear and united and patient firmness over a sustained period of time." He added: "It is wrong that it is now easier for Russian citizens to get visas into European countries than it is for Georgians. "Georgia is a transparent democracy, an open society. Russia is clearly going in the wrong direction in that respect." Former Liberal Democrat leader, Sir Menzies Campbell, said it could be dangerous to isolate Russia. "I think we've got to make clear our displeasure about the way in which Russia has acted outrageously," he told the BBC. "But if by doing so, in a particular way and with particular language, we drive Russia into isolation, then sulking Russia, in isolation, will be even more difficult to deal with. "And that's why when people talk about expulsion from the G8 and things of that kind, I think they've got to understand what the possible consequences of that would be to the Russian government's attitude." 'Disregard for principles' Meanwhile, Foreign Secretary David Miliband has said there is no excuse for the violation of international law. Writing in the Mail on Sunday, he said: "Russia has become the aggressor - it has gone from claiming to defend Russian passport holders in regions of Georgia to seeking the break-up of the state, showing disregard for the principles of modern international relations. "The immediate instinct of the prime minister and I was clear: to speak out against aggression, to call for respect for human rights and international law and to rally world opinion behind these principles." During his conversation with Mr Brown, Mr Medvedev said Russia was in favour of the deployment to Georgia of additional monitors from the Organisation for Security and Co-operation in Europe. In a separate development, Russian Foreign Minister Sergei Lavrov spoke to his German counterpart Frank-Walter Steinmeier. They agreed on the need to "put an end to attempts to use the situation surrounding Georgia... to raise tensions in Europe by speculating on non-existent threats concerning other post-Soviet countries", said the Russian foreign ministry. Georgia has cut diplomatic ties with Russia after Moscow recognised the independence of the breakaway regions of South Ossetia and Abkhazia. | ||
Wednesday, August 27, 2008
Obama's Georgia position: No change, same ole shit
Change? Regarding Georgia and South Ossetia the gibberish seems frighteningly familiar in positions taken yesterday regarding Georgia.
http://www.bloomberg.com/a
In an earlier statement regarding Kosovo, Obama had been particularly subtle. While he said that "Kosovo’s independence is a unique situation resulting from the irreparable rupture Slobodan Milosevic’s actions caused; it is in no way a precedent for anyone else in the region or around the world." it also seems to me that everyone can argue that their particular situation is unique.
http://2008central.net/200
And why would recognizing the right of self determination of people who want to be independent be abhorrent to Western values? Isn't this what concerning Tibet is all about?
The fact is that these positions are driven less by principled positions that by real-politic maneuvers in a geo-strategic fight of positions taken "to preserve US interests." The US has been promoting the breakup of both Bolivia and Venezuela, but, as is usual with the Bush Administration, has failed miserably. (Venezuela: oil rich Zania region http://notapundit.wordpres
As a result of Bush's meddling, Bolivian president Evo Morales was forced to issue a recall vote regarding his presidency after refusing to recognize the secessionist attempts. He won the recall vote easily, but it still seems that trouble is brewing, and it is quite likely that US money and advice spurs these efforts.
http://www.taipeitimes.com
So when Obummer and McCain talk about the illegality of South Ossetia to be independent, and the unwise behavior of Russia to recognize autonomy, please do not believe a word of it. Rather it all comes down to friends, enemies and natural resources. And in this regard Obummer is singing much the same song as the front and center warmongers, Bush and McCain, filled with much the same hypocrisy and duplicity.
Thursday, August 21, 2008
More Neo Con (warmongering) infestations
By Jason Leopold
August 21, 2008
Randy Scheunemann, one of John McCain’s top foreign policy advisers, represents a key link in neoconservative strategy that seeks simultaneously to remove hostile regimes in the Middle East and to box in Russia through an expanded NATO that incorporates former Soviet bloc countries.
Scheunemann has come under scrutiny in recent weeks for his past lobbying work on behalf of the government of Georgia, even while he was advising McCain who vowed to bar lobbyists from his campaign.
Scheunemann’s company, Orion Strategies, has received about $750,000 from Georgia, with payments as recently as May.
After the Aug. 7 outbreak of fighting between Georgia and Russia over Georgia’s breakaway province of South Ossetia, McCain – advised by Scheunemann – led a crescendo of tough rhetoric warning of a possible new Cold War and demanding harsh penalties against Moscow.
But Scheunemann's advice on the Russia-Georgia conflict only captures part of his role in shaping McCain ’s neoconservative foreign policy.
Scheunemann merges two key prongs of a neocon global strategy for permanent U.S. military dominance: the simultaneous projection of U.S. power into the Middle East and the elimination of Russia’s dream of reestablishing itself as a major international player.
Operating mostly behind the scenes, Scheunemann has long worked to unify former East Bloc states into an anti-Moscow alliance and to apply regime-change tactics against U.S. adversaries in the Middle East, such as Saddam Hussein’s Iraq and the mullahs in neighboring Iran.
In that regard, Scheunemann was one of the neocon operatives who helped promote bogus intelligence about Iraq in the run-up to the U.S.-led invasion. He also has said the U.S. government has not been tough enough in dealing with other “rogue” nations, such as Iran.
For instance, Scheunemann believes one area of U.S. foreign policy that needs change is the ban on assassinating leaders of foreign governments.
“It makes no sense to regularly target command and control nodes with precision-guided munitions, while denying highly capable sniper teams the ability to attack individual targets,” Scheunemann told conservative author Bill Gertz in the 2002 book Breakdown.
According to the book, Scheunemann believed the CIA should have been given the authority to assassinate Saddam Hussein during the first Persian Gulf War.
“The messy business of back-alley tradecraft has taken a back seat to the much simpler business of ‘liaison’ with foreign intelligence services,” Scheunemann told Gertz, adding that he would seek to change that approach if and when he returned to the U.S. government.
A director of the neocon Project for the New American Century, Scheunemann worked on McCain’s failed bid for the White House in 2000 and became a top adviser to former Defense Secretary Donald Rumsfeld in 2001.
Foreign Contacts
But Scheunemann’s primary service to the Bush administration has come in his private capacity as a contact to Eastern European states as well as his association with Iraqi exiles.
In fall 2002, Scheunemann got a green light from the White House to launch the Committee for the Liberation of Iraq, an organization whose mission was to promote regime change in the region and to gather European support for a preemptive strike on Iraq.
“The Committee for the Liberation of Iraq was the brainchild of the Bush administration,” the Financial Times reported on Dec. 16, 2002. “It is said that, once the Saddam regime has been overthrown, the CLI will act as a ‘shadow government’ for Baghdad.
“But it will limit itself to policy matters and will not deal with details. It will, eventually, press for a ‘competitive petroleum production-sharing regime’ which could make OPEC irrelevant to Iraq's oil output or supply decisions.”
Scheunemann had been an early supporter of Ahmad Chalabi and his Iraqi National Congress, which supplied false intelligence to the CIA about Hussein’s alleged WMD and his supposed ties to Osama bin Laden.
In 1998, while an adviser to Republican Senators Bob Dole and Trent Lott, Scheunemann drafted the Iraq Liberation Act and got the federal government to funnel $98 million to Iraqi exiles associated with Chalabi’s INC.
Later, the Committee for the Liberation of Iraq housed its offices at the same address as Chalabi’s INC.
Scheunemann worked closely, too, with the White House Iraq Group, which was headed by George W. Bush’s Chief of Staff Andrew Card. The so-called WHIG was charged with selling the war to the American public.
In November 2002, the Washington Post reported that Scheunemann’s group would push for regime change in Iraq through “sessions with opinion makers, contacts for journalists and mass marketing when the time is ripe.
On Jan. 28, 2003, the same day that President Bush delivered his State of the Union address that included the now-debunked claim that Iraq had sought yellowcake uranium from Niger, Scheunemann tapped McCain and his close ally, Sen. Joseph Lieberman, as honorary co-chairmen of the Committee for the Liberation of Iraq.
“By joining our efforts, Senators McCain and Lieberman highlight their commitment to ending the threat posed by Saddam Hussein and freeing the Iraqi people," Scheunemann said in a statement issued by his committee.
McCain and Lieberman aggressively promoted the CLI’s goal of Iraqi regime change via a preemptive military strike, which was launched on March 19, 2003, toppling Hussein’s government in three weeks.
In an April 13, 2003, op-ed in the Los Angeles Times, Scheunemann wrote how a “democratic Iraq” would help remake the Middle East, an argument that remains a focal point of McCain’s presidential campaign.
‘New Europe’
But Scheunemann also personifies another part of the neocon agenda. He is a key bridge between an aggressive U.S. policy in the Middle East and the projection of U.S. influence into the former East Bloc nations which were long dominated by the Soviet Union.
In October 2002, during the run-up to the invasion of Iraq, President Bush considered naming Scheunemann as a special envoy to the Iraqi opposition. But Scheunemann was judged to have more value enlisting Eastern European nations into the "Coalition of the Willing.”
So, Scheunemann pulled together the “Vilnius 10” group of East European nations – Slovenia, Slovakia, Romania, Bulgaria, Lithuania, Latvia, Estonia, Albania, Croatia and Macedonia – in support of Bush’s war policy.
At the time, some foreign policy analysts recognized this collaboration as part of the neoconservative desire to build up NATO to circumvent the United Nations Charter, which bars military attacks without UN sanction.
“With NATO now set to enlarge from 19 members to take on seven East European nations including the three Baltic states, it is said that both the Bush team and the [Committee for the Liberation of Iraq] want the political mechanism of the Atlantic alliance to replace the UN Security Council in giving multilateral legitimacy to any major U.S. action outside North America,” the Financial Times reported on Dec. 16, 2002.
“This is because, unlike the UN Security Council where the French or Russians might block American action, NATO's political decisions do not require consensus. Only NATO's military decisions require consensus.”
For actual military operations, President Bush made clear he would rely on ad hoc alliances, such as the Iraq War’s “Coalition of the Willing.”
The reward for the “willing” Eastern European countries, which the Bush administration called “New Europe,” was future inclusion in NATO with the umbrella of its mutual security guarantee that treats an attack on one as an attack on all.
“Considering the nations - including the Baltic states - signed on the group at the expense of creating a schism in the European Union, the Scheunemann initiative was unanimously regarded as a diplomatic triumph for Washington and a coup d’etat in Brussels,” the Baltic Times reported in August 2003.
Scheunemann’s crossover between his work on the Iraq invasion and his connections to former East Bloc countries proved lucrative, too. He advised them that their collaboration on the Iraq War could get them Iraqi reconstruction contracts as well as U.S. support for their entry into NATO.
He earned hundreds of thousands of dollars from countries, such as Romania which paid him $175,000 for providing advice on Iraqi reconstruction deals.
For another lobbying client, Latvia, Scheunemann made himself even more valuable. He helped form the Latvian Builders Strategic Partnership, a consortium for parlaying Latvia’s support for the Iraq invasion into a cut of the multimillion-dollar reconstruction spending.
Five months after the U.S.-led invasion, Scheunemann met with Peteris Elferts, Latvia’s parliamentary secretary in the Foreign Ministry and ambassador-at-large for Iraqi policy, and Valdis Birkavs, chairman of the Latvian Builders Strategic Partnership, about constructing an information technology system in Baghdad.
Georgia, another of Scheunemann’s lobbying clients, also backed the Iraq invasion, contributed troops, and thus counted on Washington’s support to bring it into NATO. [For more on McCain-Scheunemann-Georgia ties, see Washington Post, Aug. 13, 2008]
Though other NATO members, especially “Old Europe” nations like France, blocked Georgia’s admission, Georgia’s pro-U.S. president Mikheil Saakashvili apparently believed he would have Western backing on Aug. 7 when he launched an offensive against the breakaway province of South Ossetia.
Instead, the Russian military intervened to drive back the Georgian army and then took up security positions inside Georgian territory. McCain joined with leading neoconservative voices in denouncing the Russian attack.
McCain’s tough talk about Russia and his insistence that he will only tolerate “victory” in Iraq offer an important insight into what his foreign policy would look like if he wins the presidency.
Surrounded by hardcore neoconservatives, like Scheunemann, there is every reason to believe that a McCain administration would continue using force to impose Washington’s will in the Middle East while engaging in geopolitical brinkmanship against old rivals like Moscow.
Jason Leopold has launched a new Web site, The Public Record, at www.pubrecord.org.
Original article posted here.
