Showing posts with label Trade. Show all posts
Showing posts with label Trade. Show all posts

Wednesday, December 23, 2015

The EU's Anti-Israel Labeling Scheme Is Starting To Fall Apart

http://de.europenews.dk/_ws/mediabase/_ts_1434707036000/archive/files/KauftNicht2.jpg


As I predicted, the EU's new diktat 'yellow starring' goods made or grown in Judea, Samaria, East Jerusalem and the Golan has suffered serious backlash.

Today, the Czech Republic joined Hungary, Germany and Greece in formally voicing criticism of the EU's diktat. Since the labeling procedure, size and format is not specified, there's little doubt in my mind that it will either be ignored or at best marginally complied with in these countries. The same is true of countries like non EU members Switzerland, Bulgaria,Albania (the last two have reasonably close ties to Israel)and the other Balkan states. EU countries like Poland, Romania, and Cyprus are unlikely to go along with it either for the same reason.

What all these countries have in common with the exception of Germany (and of course, Bulgaria and Albania) are small or non-existent Muslim populations they have no need to appease. Germany of course has historical reasons for feeling particularly uneasy about something like this, while warm relations between Bulgaria, Albania and the Jews are longstanding.

 


While EU foreign policy czar Federica Mogherini might claim that this move by the EU is merely "technical guidelines on the indication of origin, which is in no way a boycott," most Europeans know better, and so does Ms. Mogherini.

There are literally over a hundred territorial disputes in the world, some involving countries like India and China, some even involving EU members. But Israel and Israel alone is being singled out for this treatment. And the real meaning is quite clear. This is the EU picking sides in this struggle between Israel and the Arabs whom call themselves 'Palestinians' and they've chosen to side with the Arabs. These 'guidelines' are essentially the opening shots in an attempt by the EU  to make economic war on Israel and to force Israel back to indefensible borders.

It will fail for a number of reasons.

Israel imports far more from the EU than it exports, and only a small percentage of the $14 billion trade between Israel and the EU is impacted by these new guidelines. A counter boycott of EU goods by Israel and its supporters worldwide would affect the EU a lot more than it would hurt Israel since almost nothing Israel imports from the EU is anything it can't produce domestically or obtain elsewhere.

For that matter, the EU has been threatening this for quite some time, and most Israeli producers whom grow any items with a shelf life in the areas mentioned cut back on imports to the EU along time ago. They're exporting to Russia, India, East Asia, Australia, Canada, the US, non-EU Europe, the Caucasus and yes, even the Arab world after repackaging. Expect that strategy to be mirrored in  Europe, where a lot of countries will simply wink and ignore the labeling diktat.

The EU choosing to side with their murderous welfare recipients in Gaza and Mahmoud Abbas's little reichlet  instead of a vibrant western democracy like Israel makes little sense considering the problems the EU already had to deal with.

This isn't going to end well for them.


Friday, July 10, 2015

Israel and China Expand Trade Agreements



Israel and China have again expanded trade protocols, the third expansion since 2012. Among other things, the deal insures lines of credit Israeli banks issue for Chinese companies purchasing Israeli goods that helps finance Israeli exports to China.

The new deal expands the protocol by $500 million (about 1.875 billion NIS). This is especially interesting as it was completed in spite of China losing $3 trillion in their recent stock market crash. China obviously has increased its appetite for Israeli products, mainly in the fields of health and medical devices, although education, transportation, communications, infrastructure and agriculture are also included.

“The third expansion of the financial protocol between Israel and China is a further measurement for tightening the relation between the two countries and indicates the success of the protocol in opening the Chinese market to Israeli companies,” Finance Ministry Accountant-General Michal Abadi-Boiangiu said.

“The policy of using state guarantees to support growth-generating targets is reflected in the expansion of the protocol, which will lead to the increase in the Israeli exports, thus benefiting employment, GDP and tax revenues,” she said.

This is seen as an important step towards a free trade agreement, something Israel's Economy Ministry is now negotiating with China. That agreement is expected to significantly boost trade between the two countries, now at over $6 billion per year.

The ministry’s Foreign Trade Administration already has the same number of trade attachés in China as in the United States.



Sunday, June 14, 2015

All That’s Needed to Stop Fast Track Is You – Call Congress Monday!

 An important message from my friend Sarah Noble at the Independent Sentinel:


Of three large trade bills passed on Friday, only TPA was crushed, 126-302. TAA  did pass but TPA didn’t. TPA is considered necessary for TAA to work. TPA is the fast-track authority. It’s the process, not the deal itself.

TPA is being brought back on Tuesday and Wednesday. What will the GOP do to make it acceptable if anything?

Stripping TPA out of TPP is unacceptable to Progressives and it is unlikely the conference vote will pass both the House and Senate if TAA remains as is.

All trade deals include a TPA.

If TPA goes down, so does TAA. TAA spends large sums of taxpayer money to compensate workers for lost jobs by way of unemployment and social welfare programs et al. TPA is actually pork barrel spending to get trade deals through and doesn’t really work. The trade deals are usually worth it.
Another alternative to get TPA passed is for the House to reconsider TAA, perhaps putting even more tax dollars into it. It would need 80 votes to pass which would include a large number of Republicans. The pressure is being put on them as I write this.

There was a lot of talk about the Democrats being offended by Barack Obama impugning their character on the day of the vote as he was trying to convince them to vote for it, but what they really want is more money for TAA or a halt to proposed amendments limiting climate change and immigration.

TAA, which is the trade deal Republicans want to boost our economy, shows they can fight for things when they want to.

John Boehner is probably bringing TPA back for a vote Wednesday. He might be confidant it will pass after he presents a better deal for the Democrats.

TPA is fast-tracking a trade bill – TPP – that allegedly sets up a massive Trans-Pacific Union with a treaty that will not need 67 votes in Congress to pass and which will turn over some amount of power to the Union. We don’t know how much because we the people aren’t allowed to read even the draft. It could affect our sovereignty but we don’t know for sure or to what degree. It’s a pig in a poke.
Larry Kudlow  on behalf of the TPA – fast-track authority – and the TPP bill itself on his show Saturday.

Kudlow said TPA is a simple agreement that presidents are routinely given. It’s not new and its merely a process.

He thinks opponents are being revengeful but I don’t believe that. The reason is a lack of trust, not revenge. Kudlow thinks opponents are protectionists and xenophobes only. He said the handful of congressmen against it are trouble makers.

We can’t be protectionists but does that mean we have to be globalists? One of the Sentinel writers, Jim Soviero said that people should consider if Barack Obama is a free trader or a globalist and use that as a benchmark.

Kudlow assured Americans trade is in our best economic interests and the concerns about immigration and climate change are just not true. TPP will go online once it’s finished and there will be an opportunity to vote against it. While it’s a treaty, TPA waves that constitutional requirement of 67 votes however.

One of Kudlow’s callers and a strong supporter – Tom – called Kudlow The Oracle in a complimentary way. He said he was against TPA because he read it and he pointed out number 7 in TPA which he interpreted as saying you cannot back off the environmental stuff that’s in the bill and that Mr. Obama is doing right now in this country. The listener said that to him it means that we are stuck with Mr. Obama’s oppressive regulations.

Kudlow said those words are meaningless because TPA is only a process and that language is to make the left comfortable. Kudlow wasn’t aware of number 7 and had no knowledge of it. He hadn’t read TPA. If he hasn’t read it, why is he discussing it?

The section the caller referred to is probably this one:
(7) to seek provisions in trade agreements under which parties to those agreements ensure that they do not weaken or reduce the protections afforded in domestic environmental and labor laws an encouragement for trade;

This clause likely means we won’t compromise the environment for trade – trading on the environment can’t be used as a bargaining chip. I don’t think the clause is a problem, but, again, in the hands of Barack Obama, who knows. I’ve linked the TPA at the bottom and you can read it and judge for yourself.

Kudlow conceded the words might need to be removed but that could be done.

What Mr. Kudlow (who I also consider an Oracle) is ignoring is the fact that people on the right simply don’t trust Mr. Obama and with good reason. He is adept at twisting words to meet his agenda – words matter and he doesn’t necessarily interpret them the way the rest of us do. Who knows what he will negotiate away and when it comes back to Congress, the Democrats can get it passed if 67 votes are not required.

On Friday, Nancy Pelosi gave a speech on the House floor and I’ve included three sections of interest because it seems possible that Nancy Pelosi will move ahead with TAA and take her followers with her if she gets a better deal.

“Environmental justice – looking at these prohibitions on dealing with climate and 11 other countries in the world, and then our own. [There are GOP amendments to prevent Mr. Obama from negotiating climate change and immigration goals] Now, again, I commend the President, because in the Fast Track bill, there are some good provisions on the environment – issues, I’m talking about an ethic, a responsibility, a comprehensive view of the future. And again, the Pelosi Amendment addressed the indigenous people, all these people who will be not of the first, shall we say, priority for many of these countries as they make their economic decisions.”
[…]
“So while I’m a big supporter of TAA, if TAA slows down the Fast Track, I am prepared to vote against TAA. Because then, its defeat, [I’m] sad to say, is the only way that we will be able to slow down the Fast Track.”
[…]
“For these and other reasons, I will be voting today to slow down the Fast Track, to get a better deal for the American people – bigger paychecks, better infrastructure, help the American people fulfill the American Dream.”

These amendments are very troubling to the left. That doesn’t mean they have ulterior motives but they might.

Nancy Pelosi is right when she says voting against TPA slows the process. That’s all many of us want.

There are a number of items in the draft bill itself that have been leaked. One issue of concern is that foreign governments can sue companies here in the U.S. and the taxpayers would be on the hook for it. While TPA is not the bill itself, it is giving up the 67 votes in the Senate so Mr. Obama can negotiate in secret, publishing TPP only when it’s complete.

Why do we have to fast-track something – the draft of which – most of Congress hasn’t read? What’s the rush?

Contact John Boehner Monday at (202) 225-0600 or Call the Switchboard to contact your representative at (202) 224-3121. Take down the Capitol Hill phone lines. 

Get it? If you want to stop this in its tracks and send a message, here's your opportunity

Friday, June 12, 2015

Breaking: ObamaTrade Dies In The House!!

https://fellowshipofminds.files.wordpress.com/2012/10/demon2.jpg

President Obama's attempt to screw America's workers and promote massive globalization failed in the House, as Democrats on the Left combined in an odd menage' with conservative Republicans to defeat the Obama Administration's secret protocol giving the president executive authority to 'fast track' trade agreements that were more about immigration, global warming and establishing an EU-like bureaucracy than about trade.

President Obama made an exhaustive pitch to Democrats, saying that voting against the bill was 'voting against me.' It failed dismally.

It was also a defeat for the GOP establishment leadership, as John Boehner, Paul Ryan, Kevin McCarthy and Mitch McConnell did everything but hold a gun to the heads of GOP conservatives to get them to vote in favor of the bill.

A substantial reason this went down is simple. The bill itself was held in a closely guarded secret room, only select members of congress were even allowed to see it, and they were not permitted to take photographs or notes, or even to discuss it with the media. Senator Jeff Sessions (R-AL), one of the few who read the bill, was particularly vociferous about how bad it was, saying that if the American people knew what was in it, the bill "would be dead."

This president, who pledged 'the most transparent administration in history' has been caught lying one too many times, and the same applies to the GOP leadership. No one trusts them any more. And when GOP committee chairman Paul Ryan started echoing Rep. Nancy Pelosi on ObamaCare, essentially saying we had to pass the bill to know what was in it, that was the straw that broke the camel's back.

The Democrats and Republicans whom voted to flush this nonsense and send it where such items belong deserve our thanks, no matter what their reasons were. And that includes Nancy Pelosi, who performed one of the few worthwhile deeds in her long congressional career by voting to kill this  disgrace ad safeguard American workers.

As for the Republicans, it's long past time they got rid of Boehner, McConnell and the rest of the GOP establishment leadership.

When you lie down with pigs, some of the stench sticks to you no matter what. If the GOP is to continue as a viable party, it's time they drove the thieves out of the Temple.

https://jacobisrael71.files.wordpress.com/2015/03/turning-tables.jpg

UPDATE: Here's a list of congress members whom voted against ObamaTrade,

Thursday, May 22, 2014

This Story Could Affect You More Than Anything You'll Read Today

 http://www.bellenews.com/wp-content/uploads/2014/05/Russian-President-Vladimir-Putin-has-signed-a-huge-gas-supply-contract-with-China-during-his-visit-to-the-Asian-country-640x432.jpg?48ea21

The most important and far reaching story out there today is naturally the one you're not hearing about. And it has the potential to affect you personally a great deal more than 90% of what's in the headlines.

Russian President Vladimir Putin has scored a major win.He has finally succeeded in making a large deal with China to supply the Chinese with natural gas and oil - in a non-dollar contract.

As part of the agreement, the Bank of China (BOC) just signed a non-dollar agreement with VTB, one of Russia’s largest commercial bank to allow VTB and BOC to pay each in their domestic currency, removing the need for energy trading to be conducted in US dollars and a big step towards undermining the dollar's status as the world's reserve currency, something that's been true since the post WWII Bretton-Woods Agreement.

Putin's deal with China was held up for a long time simply because of price haggling.Gazprom, Russia's nationally owned energy company is anticipating that its average export price on gas this year will be around $10.62 per million Btu. The Chinese will be getting it at a substantial discount, around $10 per million Btu. Since the gas China now imports from Myanmar and Central Asia costs the Chinese about $10.15 per million Btu,the deal makes sense for them. In fact, it makes so much sense for them that they're willing to invest an estimated $25 billion to finance infrastructure costs to take in the estimated 38 billion cubic meters per year the Chinese have contracted to import from Russia, 20% of Russia's total output.The pipelines involved are scheduled to be completed by 2018.

And they'll be dealing in rubles and renminbi, not dollars...which makes the deal sanctions-proof, gives Russia a badly needed dose of hard currency, and allows Putin to thumb his nose at any EU threats of finding other sources of energy as a result of the Situation in Ukraine. And when it goes through, it accomplishes something Putin has been working to accomplish for years, bypassing the U.S. dollar as the medium for energy trades.

How does this effect you? Let's look at what that last sentence really means.


Because the U.S. dollar is the medium in which energy trades are calculated, the price of these commodities is linked to the value of the dollar, and the oil producing countries in essence import our inflation...they simply raise their prices to cover it, which also affects the prices of other commodities they import, like foodstuffs and western manufactured goods. The secret behind our relationship with the Saudis and the Gulf Emirates is that for years, they have successfully fended off efforts by Russia, Venezuela and the Iranians to ditch this arrangement.

While it's not entirely ditched yet, this is a major breach, and a lot of other OPEC members and customers will probably gleefully walk through it, depending on the strength of their currency and their need to import energy.

Since the value of anything depends on demand, how much people want or need to own it, the potential loss of the dollar's status as the world's reserve currency weakens the dollar. As this trend continues, the inflation we've been importing will now start to come home to roost as foreign manufactured items like the cheap goods we've learned to love made in China are going to cost more. So will food, and interest rates.

Your paycheck and your retirement dollars will not stretch as far either, your savings and 401Ks will be negatively impacted and travel will be likely more expensive than it already is.

This was probably inevitable, given the ridiculous policy of 'quantitative easing' and the huge amount of the $18 trillion debt and climbing President Obama and his team have run up. There's a part of me that thinks this might have been deliberate on the Obama Regime's part, seeking to weaken our currency deliberately to pay back these funds in cheaper dollar. No nation in history has ever managed it, and the ones that have tried did damage to their economy and their standard of living it took decades to recover from,if they were able to recover at all. Ask the Argentinians some time about how well that worked out for them.

Finally, if more countries abandon the dollar as a reserve currency, the U.S. will have lost a huge weapon, one we used successfully on al-Qaeda during the Bush Administration. No longer will we be able to say to foreign countries that if they do business with terrorist groups or a country we wish to impose sanctions on that U.S. banks will be barred from doing business with them,honoring letters of credit or handing their transactions.

That will still mean something because of the size of the American market, but nowhere near as much as it does with the dollar as the world's reserve currency. And losing that strategic weapon could affect Americans in a negative way in the future as well.

Thursday, August 08, 2013

Israel To EU - Go Pound Sand

EU foreign policy chief Catherine Ashton and Prime Minister Binyamin Netanyahu, June 20, 2013.

The Israeli government sent an official message to the EU that it does not recognize the new EU guidelines ghettoizing Israel to the 1948 ceasefire lines and that it will sign no new agreements that mandate this, as the new EU diktat require.

Israel will not enter into any new agreements with the EU under the terms of the recently published settlement guidelines, diplomatic sources said Thursday following a meeting on the matter chaired by Prime Minister Binyamin Netanyahu.

Under the guidelines, Israel would have to sign a territorial clause reneging claims to the West Bank, east Jerusalem and the Golan before entering in any future agreement with the EU. The guidelines also forbid any dealings with Israeli entities over the Green Line.

The sources said that Israel would ask for further clarifications about the guidelines. It was not immediately clear whether Israel would take part in negotiations that were set to begin Wednesday with the EU over its participation in the Horizon 2020 program, to begin a week from Wednesday.


The EU's 'guidelines' forbid EU member states from cooperating, transferring funds, giving scholarships or issuing research grants to public or private bodies in Judea and Samaria, eastern Jerusalem, and even the Golan Heights.

The Israelis, thankfully have decided not to accept this nonsense. And in fact, even some of the EU nations, most notably Germany have been pushing back against this idiocy.

Look for the Israelis to spend some time talking about the with German foreign Minister Guido Westerwelle when he's in Jerusalem next week.

The EU was counting on Israeli money (to the tune of some 600 million euros )and cooperation in the Horizon 2020 R&D program, with Israel being the only non-EU nation invited to participate in the program.

The EU just discovered that ghetto-izing Israel has a price tag, and I expect there will be a considerable 'window' created in the sanctions. It's almost certain that Germany, Switzerland, Georgia, Croatia, and several other EU countries will quietly ignore the new 'guidelines' and/or participate in things like re-packaging in order to evade them.

And Israel has discovered, once again, that standing up for itself is the best policy.

Thursday, July 18, 2013

No Peace Talks Scheduled:The EU Dikat On Israel's Borders Garners Its First Fallout

Al-Hayat had announced that talks between the Palestinians and Israelis were resuming, but the State department has already confirmed that they're not.

"There are currently no plans for an announcement for the resumption of negotiations," [US State Department Spokeswoman Jen] Psaki said in Amman, where US Secretary of State John Kerry is on his sixth visit to the region to try to revive peace talks that broke down nearly three years ago.

(H/t Carl)

The reason's obvious. Why would Abbas and the Palestinians bother to negotiate anything now when the EU already has given them all their territorial demands?

And at that, according to the Palestinians, it's not enough anyway.

Abbas is bragging (in Arabic, of course) that Netanyahu offered him even more privately than was leaked publicly, but he still turned down any negotiations.

I find that doubtful, but it does make Abbas look tough and bolsters him with Fatah.

According to EU Commission President Jose Manuel Barroso, the guidelines outlining the EU's new Jewish ghetto are going to be up for discussion, with Barroso saying “Following a request from Israeli authorities the EU stands ready to engage in consultations on their implementation”.

That indicates the EU was perhaps surprised by the Israeli response and might be open to at least discussing some changes. And they're perhaps also realizing that they're subject to damage from this as well.

For instance, according to today's Maariv daily, Israel has threatened to pull out from the European Union's Horizons 2020 program, a move that would seriously affect Europe's prestige and its wallet.

Israel is the only non-European full partner in the project, and is supposed to invest 600 million Euro (785 million US dollars) in the project over 7 years.

Besides the financial hit the EU project would take as a result, the move would be a serious blow to the project’s prestige and success. Israel is a central partner in the projects that Horizon 2020 undertakes, and part of these project’s successes are dependent on Israeli human resources and research.


But wait, there's more.

Israeli Economy and Trade Minister and Naftali Bennett have already let Israeli PM Benyamin Netanyahu and any other interested party know that his party Habayit Hayehudi (Jewish Home) will leave the coalition if there's any negotiations based on the pre '67 borders, and a number of members of Netanyahu's own party Likud as well as Israel Beiteinu have echoed what Bennett said. Even if he wanted to, there's no way Netanyahu could begin any negotiations with that as a starting point without his government falling and he knows it.

Bennett, meanwhile has been spending time in China cementing business deals and goodwill. As he says, the country is wide open for increased trade with Israel, there is no historic or current anti-semitism and the Chinese are a lot more interested in the benefits they can get from Israeli innovation than the Arab-Israeli conflict.

“In all the 20 meetings we held, not once were we asked about the Arabs, or about the Palestinians, or about any occupation or anything else,” said Bennett. "All they care about is Israeli high-tech, Israeli innovations, how we can bring these technologies here. We met ministers and CEOs of companies and the heads of the state. So the main insight is that Israel needs to lead its economic diplomacy, not constantly deal with the political issues, where we don’t always have an answer, but lead through the economy.”

If the EU wants to erect walls against one of the top high tech and scientific countries in the world that actually provides important trade that benefits the EU's economy as opposed to the Palestinians who provide nothing and merely sop up EU tax dollars like a sponge, that's the EU's choice.

Ultimately, I think it's going to be as successful as their choice to replace six million Jews with 20 Million Muslims.

As for Israel, they need to announce an end to the Oslo era and the faux negotiations, annex the parts of area C and area B they decide they require for their security, bring the Jews behind those borders and move any non-Israeli Arabs to the other side. And then defend those borders diligently.

That's how this thing is going to end eventually anyway.

Monday, May 27, 2013

Obama Threatens The UK If They Leave The EU

 President Barack Obama meets Prime Minister David Cameron in Washingto

This is one of those stories that makes headlines overseas but will barely be reported here.

There is a significant political movement in Britain in favor of exiting the European Union. It's gotten to the point where a number of members of Britain's Conservative party have pledged themselves to make an election alliance with Britain's UK Independent Party(UKIP) and embrace real conservative principles (including exiting the increasingly dysfunctional EU) instead of the faux conservatism embodied by PM David Cameron and the conservative establishment, something that should be recognizable to conservatives on this side of the Pond watching the antics of RINOS here in America.

Cameron met earlier this month with President Barack Obama in Washington and as it now comes out, President Obama is threatening the UK with financial blackmail if they exit the EU.

There's a multi-billion dollar trade agreement known as the Transatlantic Trade and Investment Partnership (TTIP)in the works. It's not the best deal from a US standpoint - it removes the relatively low tariffs of about 3% to 5% between the US and Europe, would allow EU companies to bid for state contracts and undercut US firms and enforces uniform regulations on both sides of the Atlantic, which would include the EU's farcical carbon tax and cap and trade legislation. Think of it as NAFTA for Europe.

But TTIP is worth a great deal of money to the EU. And President Obama openly threatened Cameron that if Britain leaves the EU, Britain will not only be excluded from the agreement but that the US would be unwilling to negotiate a separate deal with the UK.

The link comes from the reliably Left wing Guardian, but even they can't conceal the fact that what we have here is a sitting American president attempting to blackmail an ally financially to influence maters that directly pertain to their sovereignty.

To underline this, the story reveals that President Obama's BFF, Islamist Prime Minister Tayipp Erdogan of Turkey flew to DC earlier this month to get President Obama to include Turkey in the TTIP...even though Turkey is not a member of the EU.

Britain has put up with numerous insults and snubs since President Obama took office, yet by and large they've swallowed them and remained one of his consistent cheerleaders,even to the point of smearing his opponent in the last election.

Perhaps it's time the British realized that he just doesn't like them all that much, and never has.

Sunday, July 08, 2012

Sanctions? What Sanctions? German Firms Shipping Dual-Use Goods To Iran

http://www.almightydad.com/wp-content/uploads/2009/09/I-didnt-do-it.jpg


My friend ace reporter Benni Weinthal has a great story in the Jerusalem Post about how wonderfully the sanctions on Iran are working. Dual-use goods, for those of you unfamiliar with the term refers to items that can be used for either military or civilians purposes...a nice cover for both the Iranian regime and those wishing to get rich selling them the toys they want. Here's a slice:

Germany’s multi-billion euro bilateral trade relationship with Iran continues unabated, even as evidence mounts that the Islamic Republic is determined to build a nuclear weapons capability.

The Jerusalem Post has obtained an uncensored list from late 2011, showing hundreds of German and Iranian enterprises in a flourishing trade relationship.

This is despite Iran’s construction of Fordow, a medium-level uranium enrichment facility buried into the side of a mountain near Qom, and the fact that the German equipment could be used to build more underground nuclear facilities.

Some businesses have asked that their names be removed from the list to avoid damage to their reputations.

One company named is Baden-Württemberg-based engineering giant Herrenknecht AG, which appears to be delivering heavy tunneling equipment to Iran – some of which is promoted as having the capability of “drilling down to depths of 6,000 meters.” {...}

Tommy Steiner, a senior research fellow at the Institute for Policy and Strategy at the Interdisciplinary Center, Herzliya, told the Post on Sunday: “Since the 1960s, Germany has been a steadfast ally of Israel and contributed to Israel’s national security. One would hope that the German authorities would apply rigid scrutiny to dual-use equipment and technology that meets the criteria of sanctions enforcement.”

The revelations have surfaced at a tricky moment for German diplomacy with Iran over its nuclear program. The Federal Republic is a member of the so-called the P5+1 — the five permanent members of the UN Security Council, plus Germany — and German diplomat Helga Schmid led last week’s technical nuclear negotiations in Istanbul with representatives of Iran’s government.

Late last month, Germany’s Federal Statistical Office said that bilateral trade with Iran in 2011 totaled nearly 4 billion euros (with about 3b. euros in German exports and 778m. euros in Iranian imports).


In fairness, it's by no means just the Germans. Nor does the article cover items sold to countries like Russia and Turkey, who freely violate the sanctions. They can buy from companies in Germany and elsewhere and then simply 'resell' the items to the Iranian regime, with no one looking over their shoulder.

The sanctions are annoying to Iran, but not damaging enough to stop them from pursuing their illegal nuclear weapons program.That's priority one for the regime, and it has been for quite some time.

Stopping Iran from going nuclear is going to take more forceful means.

Wednesday, February 29, 2012

Inside Vladimir Putin


Russian leader and presidential candidate Vladimir Putin has an interesting op-ed in RIA Novosti ( hat tip,long time Joshua's Army member Louie Louie) that illuminates a great deal of his thinking about foreign affairs and reveals a lot about how Russia sees America and the West. Entitled 'Russia and the Changing World', it's well worth looking at in some detail. I've emphasized some areas:


Russia is part of the greater world whether we are talking about the economy, the spread of information or the development of culture. We do not wish to and cannot isolate ourselves. We hope that our openness will lead to economic and cultural development in Russia while increasing levels of mutual trust, a resource that is in increasingly short supply today.

However, we intend to be consistent in proceeding from our own interests and goals rather than decisions dictated by someone else. Russia is only respected and has its interests considered when the country is strong and stands firmly on its own feet. Russia has generally enjoyed the privilege of conducting an independent foreign policy and this is what it will continue to do. In addition, I am convinced that global security can only be achieved through cooperation with Russia rather than by attempts to push it into the background, weaken its geopolitical position or compromise its defenses.


A constant theme in Russian history is the fear of isolation and encirclement by its enemies. This has been true since the time of the Mongol invasion of the 13th century, a catastrophic event that saw the early state of Rus lose most of its territory to the Mongols and to the Polish/Lithuanian kingdom. Subsequently, what was left of Russia had to pay tribute in slaves and treasure to the Tatars, the Muslim successors to the Mongols and fight off attempted invasions by the Swedes and the Teutonic Knights. The Russians were unable to evict the Mongols from their territory until the 15th century, and Russia's historic payment of tribute and later conflict with Muslim states is something that should be kept in mind.

Russia's northern latitude and climate has also been a source of isolation, withmany of Russia's early ports freezing over for part of the year.

As before, I believe that the major principles necessary for any feasible civilization include inalienable right to security for all states, the inadmissability of the excessive use of force, and the unconditional observance of the basic principles of international law. To neglect any of these principles can only lead to the destabilization of international relations.

It is through this prism that we perceive some aspects of U.S. and NATO conduct that contradict the logic of modern development, relying instead on the stereotypes of a bloc-based mentality. Everyone understands what I am referring to - an expansion of NATO that includes the deployment of new military infrastructure with U.S.-drafted plans to establish a missile defense system in Europe. I would not touch on this issue if these plans were not conducted in close proximity to Russian borders, if they did not undermine our security and global stability in general.

Our arguments are well known, and I will not spell them out again. Regrettably, our Western partners are unresponsive and have simply brushed our concerns aside.

We are worried that although the outline of our "new" relations with NATO are not yet final, the alliance is already providing us with "facts on the ground" that are counterproductive to building mutual trust. At the same time, this approach will backfire with respect to global objectives, making it more difficult to cooperate on a positive agenda and will impede any constructive realignment in international relations.

The recent series of armed conflicts started under the pretext of humanitarian aims is undermining the time-honored principle of state sovereignty, creating a moral and legal void in the practice of international relations.

It is often said that human rights override state sovereignty. This is undoubtedly true - crimes against humanity must be punished by the International Court. However, when state sovereignty is too easily violated in the name of this provision, when human rights are protected from abroad and on a selective basis, and when the same rights of a population are trampled underfoot in the process of such "protection," including the most basic and sacred right - the right to one's life - these actions cannot be considered a noble mission but rather outright demagogy.

It is important for the United Nations and its Security Council to effectively counter the dictates of some countries and their arbitrary actions in the world arena. Nobody has the right to usurp the prerogatives and powers of the UN, particularly the use of force with regard to sovereign nations. This concerns NATO, an organization that has been assuming an attitude that is inconsistent with a "defensive alliance." These points are very serious. We recall how states that have fallen victim to "humanitarian" operations and the export of "missile-and-bomb democracy" appealed for respect for legal standards and common human decency. But their cries were in vain - their appeals went unheard.

It seems that NATO members, especially the United States, have developed a peculiar interpretation of security that is different from ours. The Americans have become obsessed with the idea of becoming absolutely invulnerable. This utopian concept is unfeasible both technologically and geopolitically, but it is the root of the problem.

By definition, absolute invulnerability for one country would in theory require absolute vulnerability for all others. This is something that cannot be accepted. Many countries prefer not to be straight about this for various reasons, but that's another matter. Russia will always call things as it sees them and do so openly. I'd like to emphasize again that violating the principle of unity and the inalienable right to security - despite numerous declarations committing to it - poses a serious threat. Eventually these threats become reality for those states that initiate such violations, for many reasons.


During the 15th, 16th and 17th centuries, Russia's biggest rivals were various combinations of three powers - Lithuania, Poland, and the Ukraine. Part of the animus was religious, since all three countries were strongly Catholic while Russia was Eastern Orthodox, a result of Russia's early exposure to Byzantine culture. In 1610, the Poles actually entered Moscow and sacked it, and it was three years before the Russians were able to expel them.

Ever since,Russia has regarded countries like Poland, the Baltic States, Romania and the Ukraine the way China sees its own 'near abroad' of Southeast Asia, Mongolia and Korea..as areas it needed to keep under control to prevent being invaded by its enemies. Russia has been invaded twice in relatively modern times - in 1812 by Napoleon and in 1941 by Hitler - with devastating results. They've always sought to have direct or at least a degree of political control over these countries, something the break up of the Soviet Union deprived them of.

A degree of paranoia has always been part of the Russian psyche, and seeing Poland, all three Baltic States, Bulgaria and Romania all as NATO members, not to mention Muslim Turkey whom they've fought wars with in the past feeds it, as well as NATO feelers towards the Ukraine and Georgia. Rightly or wrongly, they see this as encirclement.

Two other recent events Putin almost certainly has in mind involve the bombing of Russia's traditional ally Serbia and the UN's unilateral declaration of Kossovo as a state in defiance of all previous international law precedents, and the UN involvement in Libya.

This feeling on Russia's part explains a great deal about why they seem to be 'stirring the pot' with Muslim nations like Iran on their borders who likewise feel enmity to the U.S. - that and Russia's demographics, where the Russian birthrate is decreasing except among Russia's Muslims. Putin continues in this vein:

A year ago the world witnessed a new phenomenon - nearly simultaneous demonstrations against authoritarian regimes in many Arab countries. The Arab Spring was initially received with hope for positive change. People in Russia sympathized with those who were seeking democratic reform. However, it soon became clear that events in many countries were not following a civilized scenario. Instead of asserting democracy and protecting the rights of the minority, attempts were being made to depose an enemy and to stage a coup, which only resulted in the replacement of one dominant force with another even more aggressive dominant force.

Foreign interference in support of one side of a domestic conflict and the use of power in this interference gave developments a negative aura. A number of countries did away with the Libyan regime by using air power in the name of humanitarian support. The revolting slaughter of Muammar Gaddafi - not just medieval but primeval - was the manifestation of these actions.

No one should be allowed to employ the Libyan scenario in Syria. The international community must work to achieve an internal Syrian reconciliation. It is important to achieve an early end to the violence no matter what the source, and to initiate a national dialogue - without preconditions or foreign interference and with due respect for the country's sovereignty. This would create the conditions necessary to introduce the measures for democratization announced by the Syrian leadership. The key objective is to prevent an all-out civil war. Russian diplomacy has worked and will continue to work toward this end.


Putin is being fairly disingenuous in the last paragraph.Russia's interest coincides with Iran's to preserve the status quo. But he correctly points out the hypocrisy of the UN's 'responsibility to protect' doctrine being used to protect European oil interests under the guise of 'human rights'.

In this context and considering the extremely negative, almost hysterical reaction to the Russian-Chinese veto, I would like to warn our Western colleagues against the temptation to resort to this simple, previously used tactic: if the UN Security Council approves of a given action, fine; if not, we will establish a coalition of the states concerned and strike anyway.

The logic of such conduct is counterproductive and very dangerous. No good can come of it. In any case, it will not help reach a settlement in a country that is going through a domestic conflict. Even worse, it further undermines the entire system of international security as well as the authority and key role of the UN. Let me recall that the right to veto is not some whim but an inalienable part of the world's agreement that is registered in the UN Charter - incidentally, on U.S. insistence. The implication of this right is that decisions that raise the objection of even one permanent member of the UN Security Council cannot be well-grounded or effective. {...}

And one more point. It appears that with the Arab Spring countries, as with Iraq, Russian companies are losing their decades-long positions in local commercial markets and are being deprived of large commercial contracts. The niches thus vacated are being filled by the economic operatives of the states that had a hand in the change of the ruling regime.

One could reasonably conclude that tragic events have been encouraged to a certain extent by someone's interest in a re-division of the commercial market rather than a concern for human rights. Be that as it may, we cannot sit back watch all this with Olympian serenity. We intend to work with the new governments of the Arab countries in order to promptly restore our economic positions.


Putin is honest enough to state the obvious, that the Libyan intervention occurred because European countries abrogated their oil contracts with Khaddaffi and signed new ones with the rebels when they thought the rebels were winning, and then had to intervene militarily to save the new deals once Khaddaffi recovered and drove the rebels back to Benghazi.

He also is honest enough to bring up the fact that Russia's interest in the region is commercial, and that he has no intention of allowing those interests to be sidelined.He insists on Russia having a slice of the pie.

Russia has always had good relations with the moderate representatives of Islam, whose world outlook was close to the traditions of Muslims in Russia. We are ready to develop these contacts further under the current conditions. We are interested in stepping up our political, trade and economic ties with all Arab countries, including those that, let me repeat, have gone through domestic upheaval. Moreover, I see real possibilities that will enable Russia to fully preserve its leading position in the Middle East, where we have always had many friends.

As for the Arab-Israeli conflict, to this day, the "magic recipe" that will produce a final settlement has not been invented. It would be unacceptable to give up on this issue. Considering our close ties with the Israeli and Palestinian leaders, Russian diplomacy will continue to work for the resumption of the peace process both on a bilateral basis and within the format of the Quartet on the Middle East, while coordinating its steps with the Arab League.


I think the Chechens would disagree with the part about good relations, but there's no doubt that Russia sees itself as outside looking in when it comes to the Sunni autocracies. In view of the current fecklessness of the current American administration, this is his way of serving notice that he and Russia are more than prepared and willing to take over America's role in the region.

The notion of "soft power" is being used increasingly often. This implies a matrix of tools and methods to reach foreign policy goals without the use of arms but by exerting information and other levers of influence. Regrettably, these methods are being used all too frequently to develop and provoke extremist, separatist and nationalistic attitudes, to manipulate the public and to conduct direct interference in the domestic policy of sovereign countries.

There must be a clear division between freedom of speech and normal political activity, on the one hand, and illegal instruments of "soft power," on the other. The civilized work of non-governmental humanitarian and charity organizations deserves every support. This also applies to those who actively criticize the current authorities. However, the activities of "pseudo-NGOs" and other agencies that try to destabilize other countries with outside support are unacceptable.

I'm referring to those cases where the activities of NGOs are not based on the interests (and resources) of local social groups but are funded and supported by outside forces. There are many agents of influence from big countries, international blocks or corporations. When they act in the open - this is simply a form of civilized lobbyism. Russia also uses such institutions - the Federal Agency for CIS Affairs, Compatriots Living Abroad, International Humanitarian Cooperation, the Russkiy Mir Foundation and our leading universities who recruit talented students from abroad.

However, Russia does not use or fund national NGOs based in other countries or any foreign political organizations in the pursuit of its own interests. China, India and Brazil do not do this either. We believe that any influence on domestic policy and public attitude in other countries must be exerted in the open; in this way, those who wish to be of influence will do so responsibly.


This is Putin reaching out to Egypt and other countries who feel threatened by foreign funded NGOs they feel are fomenting dissension and political unrest. That list,by the way,includes Israel.It's also worth noticing whom he pairs Russia with in the top of that last paragraph.

Today, Iran is the focus of international attention. Needless to say, Russia is worried about the growing threat of a military strike against Iran. If this happens, the consequences will be disastrous. It is impossible to imagine the true scope of this turn of events.

I am convinced that this issue must be settled exclusively by peaceful means. We propose recognizing Iran's right to develop a civilian nuclear program, including the right to enrich uranium. But this must be done in exchange for putting all Iranian nuclear activity under reliable and comprehensive IAEA safeguards. If this is done, the sanctions against Iran, including the unilateral ones, must be rescinded. The West has shown too much willingness to "punish" certain countries. At any minor development it reaches for sanctions if not armed force. Let me remind you that we are not in the 19th century or even the 20th century now.

Developments around the Korean nuclear issue are no less serious. Violating the non-proliferation regime, Pyongyang openly claims the right to develop "the military atom" and has already conducted two nuclear tests. We cannot accept North Korea's nuclear status. We have consistently advocated the denuclearization of the Korean Peninsula - exclusively through political and diplomatic means -- and the early resumption of Six-Party Talks.

However, it is evident that not all of our partners share this approach. I am convinced that today it is essential to be particularly careful. It would be inadvisable to try and test the strength of the new North Korean leader and provoke a rash countermeasure.

Allow me to recall that North Korea and Russia share a common border and we cannot choose our neighbors. We will continue conducting an active dialogue with the leaders of North Korea and developing good-neighborly relations with it, while at the same time trying to encourage Pyongyang to settle the nuclear issue. Obviously, it would be easier to do this if mutual trust is built up and the inter-Korean dialogue resumes on the peninsula.

All this fervor around the nuclear programs of Iran and North Korea makes one wonder how the risks of nuclear weapons proliferation emerge and who is aggravating them. It seems that the more frequent cases of crude and even armed outside interference in the domestic affairs of countries may prompt authoritarian (and other) regimes to possess nuclear weapons. If I have the A-bomb in my pocket, nobody will touch me because it's more trouble than it is worth. And those who don't have the bomb might have to sit and wait for "humanitarian intervention." {...}

The probable future of Afghanistan is alarming. We have supported the military operation on rendering international aid to that country. However, the NATO-led international military contingent has not met its objectives. The threats of terrorism and drug trafficking have not been reduced. Having announced its withdrawal from Afghanistan in 2014, the United States has been building, both there and in neighboring countries, military bases without a clear-cut mandate, objectives or duration of operation. Understandably, this does not suit us.

Russia has obvious interests in Afghanistan and these interests are understandable. Afghanistan is our close neighbor and we have a stake in its stable and peaceful development. Most important, we want it to stop being the main source of the drug threat. Illegal drug trafficking has become one of the most urgent threats. It undermines the genetic bank of entire nations, while creating fertile soil for corruption and crime and is leading to the destabilization of Afghanistan. Far from declining, the production of Afghan drugs increased by almost 40% last year. Russia is being subjected to vicious heroin-related aggression that is doing tremendous damage to the health of our people.

The dimensions of the Afghan drug threat make it clear that it can only be overcome by a global effort with reliance on the United Nations and regional organizations - the Collective Security Treaty Organization, the Shanghai Cooperation Organization and the CIS. We are willing to consider much greater participation in the relief operation for the Afghan people but only on the condition that the international contingent in Afghanistan acts with greater zeal and in our interests, that it will pursue the physical destruction of drug crops and underground laboratories.

Invigorated anti-drug measures inside Afghanistan must be accompanied by the reliable blocking of the routes of opiate transportation to external markets, financial flows and the supply of chemical substances used in heroin production. The goal is to build a comprehensive system of anti-drug security in the region. Russia will contribute to the effective cooperation of the international community for turning the tide in the war against the global drug threat.

It is hard to predict further developments in Afghanistan. Historical experience shows that foreign military presence has not brought it serenity. Only the Afghans can resolve their own problems. I see Russia's role as follows - to help the Afghan people, with the active involvement of other neighboring countries, to develop a sustainable economy and enhance the ability of the national armed forces to counter the threats of terrorism and drug-related crime. We do not object to the process of national reconciliation being joined by participants of the armed opposition, including the Taliban, on condition they renounce violence, recognize the country's Constitution and sever ties with al-Qaeda and other terrorist groups. In principle, I believe it is possible to build a peaceful, stable, independent and neutral Afghan state.

The instability that has persisted for years and decades is creating a breeding ground for international terrorism that is universally recognized as one of the most dangerous challenges to the world community. I'd like to note that the crises zones that engender a terrorist threat are located near the Russian borders and are much close to us than to our European or American partners. The United Nations has adopted the Global Counter-Terrorism Strategy but it seems that the struggle against this evil is conducted not under a common universal plan and not consistently but in a series of responses to the most urgent and barbarian manifestations of terror - when the public uproar over the impudent acts of terrorists grows out of proportion. The civilized world must not wait for tragedies like the terrorist attacks in New York in September 2001 or another Beslan disaster and only then act collectively and resolutely after the shock of such cases.

I'm far from denying the results achieved in the war on international terror. There has been progress. In the last few years security services and the law-enforcement agencies of many countries have markedly upgraded their cooperation. But there is still the obvious potential for further anti-terrorist cooperation. Thus, double standards still exist and terrorists are perceived differently in different countries - some are "bad guys" and others are "not so bad." Some forces are not averse to using the latter in political manipulation, for example, in shaking up objectionable ruling regimes.

All available public institutions - the media, religious associations, NGOs, the education system, science and business - must be used to prevent terrorism all over the world. We need a dialogue between religions and, on a broader plane, among civilizations. Russia has many religions, but we have never had religious wars. We could make a contribution to an international discussion on this issue.


Putin is exercising a little selective outrage here. Russia has certainly seen fit to punish certain countries on occasion, notably Western Europe and the Ukraine when it comes to using Russia's control of energy pipelines to blackmail them, among other things. And that's just the most recent history. Also, the IAEA is frankly not to be trusted when it comes to Iran's nukes - it ignored them for years back when El-Baradi was running it. Putin here is mainly concerned with preserving a good, paying customer. But Putin's totally correct about the intervention in Libya sending a message that illegal nuclear proliferation pays off if you're an authoritarian regime that wants to stay in power. The lesson of what happened to Khaddaffi was not lost on a number of the world's bad actors, including Iran.

In the next two sections, Putin talks about expanding its relationships with the BRIC bloc (Brazil, Russia, China and India) via the Shanghai Cooperative Organization (SCO), of which Iran is a observer member as is India. You may remember reading about this important but little known organization on these pages before.

Putin actually alludes to its energy stranglehold over Europe as a means of encouraging more economic activity and trade with Russia, although of course he doesn't use those terms to describe it. The idea, of course, is to put together a bloc to oppose what Putin and many Russians see as American hegemony and encirclement. Let's jump to what he says about Russia and America's relationship:

In recent years a good deal has been done to develop Russian-American relations. Even so, we have not managed to fundamentally change the matrix of our relations, which continue to ebb and flow. The instability of the partnership with America is due in part to the tenacity of some well-known stereotypes and phobias, particularly the perception of Russia on Capitol Hill. But the main problem is that bilateral political dialogue and cooperation do not rest on a solid economic foundation. The current level of bilateral trade falls far short of the potential of our economies. The same is true of mutual investments. We have yet to create a safety net that would protect our relations against ups and downs. We should work on this.

Nor is mutual understanding strengthened by regular U.S. attempts to engage in "political engineering," including in regions that are traditionally important to us and during Russian elections.

As I've said before, U.S. plans to create a missile defense system in Europe give rise to legitimate fears in Russia. Why does that system worry us more than others? Because it affects the strategic nuclear deterrence forces that only Russia possesses in that theatre, and upsets the military-political balance established over decades.

The inseparable link between missile defense and strategic offensive weapons is reflected in the New START treaty signed in 2010. The treaty has come into effect and is working fairly well. It is a major foreign policy achievement. We are ready to consider various options for our joint agenda with the Americans in the field of arms control in the coming period. In this effort we must seek to balance our interests and renounce any attempts to gain one-sided advantages through negotiations.

In 2007, during a meeting with President Bush in Kennebunkport, I proposed a solution to the missile defense problem, which, if adopted, would have changed the customary character of Russian-American relations and opened up a positive path forward. Moreover, if we had managed to achieve a breakthrough on missile defense, this would have opened the floodgates for building a qualitatively new model of cooperation, similar to an alliance, in many other sensitive areas.

It was not to be. Perhaps it would be useful to look back at the transcripts of the talks in Kennebunkport. In recent years the Russian leadership has come forward with other proposals to resolve the dispute over missile defense. These proposals still stand.

I am loath to dismiss the possibility of reaching a compromise on missile defense. One would not like to see the deployment of the American system on a scale that would demand the implementation of our declared countermeasures.


You can see that Putin is fairly adamant about the idea of missile defense not being introduced into Europe by America. And with the implementation of that ridiculous START treaty President Obama is so proud of.

Most of the Russian nuclear arsenal is outmoded, and the START treaty involved the Russians trading the phasing out of those old, outmoded nukes from the Cold War era on a parity basis for America dismantling state-of-the-art nuclear weaponry and missile defense. I wrote at the time that President Obama gave up everything but the beer concession at Redskins games. As Russian Foreign Minister Serge Lavrov said, "This treaty takes our relations with the United States to a qualitatively new level of equality, parity and balance of interests."

Part of the entire deal was a 'reset' of US-Russia relations and a quid pro quo of help on Iran - which of course never happened. But Putin no doubt felt obligated to put the best spin on this....especially the part about commercial relations, which Russia desperately needs. Besides, if President Obama happens to get re-elected again, Putin presenting himself as willing to make more one sided deals 'for just a few more concessions' can hardly hurt.

This article will tell you a great deal about where Putin and the Russians stand and what motivates them. I urge you to read it for yourself.

Sunday, February 19, 2012

Iran Ends Crude Oil Sales To UK And French Companies

The Iranian regime has formally announced that it is cutting off all oil sales to French and British companies.

The ban is in retaliation for EU sanctions on buying Iranian oil, set to go into effect on July 1st of this year.

"Exporting crude to British and French companies has been stopped ... we will sell our oil to new customers," spokesman Alireza Nikzad was quoted as saying by the Ministry of Petroleum website. For 'new customers', read India and China.

The European countries had already cut back their purchases of Iran oil in anticipation of the sanctions, with major players like French company Total, Royal Dutch Shell and Spain's Cepsa and Repsol either cutting back sharply on Iranian crude or ceasing to buy it altogether.The EU accounted for close to 18% of Iran's imports.

The Europeans say they have reserves for about 120 days, and there are additional sources available like Russia, South America,Libya, the U.S.and European North Sea Oil. In addition, the Saudis and Gulf States have already pledged to make up any shortfall. That could lead to fireworks if the Iranians decide to try close off the Strait of Hormuz to stop the Persian Gulf Oil from reaching Europe.

The idea behind the sanctions is to force Tehran into giving up its illegal nuclear weapons program. I see the Iranian regime as trying something much more dramatic rather than giving up their nukes.

Monday, January 30, 2012

India Opts Out Of Participating In Iran Oil Embargo

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India, the world's fourth largest oil consumer has informed the US and Europe that it will not participate in the embargo on Iranian oil scheduled to start - if it starts - this summer.

"It is not possible for India to take any decision to reduce the imports from Iran drastically, because among the countries which can provide the requirement of the emerging economies, Iran is an important country amongst them," Finance Minister Pranab Mukherjee told reporters on a visit to the Unites States.


Yeah, sanctions'll work. Sure they will.

In a related item, India and Iran have agreed to drop the use of the dollar as a reserve currency for oil trading between the two countries. They're using gold.

Thursday, September 01, 2011

Turkey Issues Apology Ultimatum To Israel On Mavi Mamara As UN Report Is Leaked


Turkey's Foreign Minister Ahmet Davutoglu has issued a one day ultimatum to Israel for an apology and compensation for the May, 2010 raid on the flotilla ship Mavi Mamara, which occurred when the ship was attempting to break the Israeli naval blockade on the Hamas-ruled Gaza Strip.

Davutoglu said that if Israel did not comply immediately, the country would "resort to Plan B."

The ultimatum was apparently sparked by the leaking of the UN's Palmer Report investigating the incident, in which nine crew members on the Mavi Mamera were killed when they attacked Israeli naval commandos attempting to board the ship. The Mavi Mamera's crew had refused to follow Israeli orders to proceed to the port of Ashdod to have their cargo inspected.

The Palmer report, which is scheduled for release tomorrow was leaked by the New York Times today. Surprisingly for a UN document, it seems to be somewhat fair to Israel.

The report found that Israel’s naval blockade of Gaza is legal and appropriate but that the way its forces boarded a Turkish-based flotilla trying to break that blockade was "excessive and unreasonable. "

The report, also found that when Israeli commandos boarded the ship they faced “organized and violent resistance from a group of passengers” and were therefore required to use force for their own protection. But the report called the force “excessive and unreasonable,” saying the loss of life was unacceptable and the Israeli military’s later treatment of passengers was abusive.

Turkey is particularly upset by the conclusion that Israel’s naval blockade is in keeping with international law and that its forces have the right to stop Gaza-bound ships in international waters, which is what happened here. That conclusion oversteps the mandate of the four-member panel appointed by the United Nations secretary general and is at odds with other United Nations decisions, Turkey argued.

The report does recommend that Israel should make “an appropriate statement of regret’ and pay compensation, but the Turks say that formula does not express sufficient remorse.

The report asserts that Israel’s sea blockade of Gaza is necessary fo r Israel's security.

“Israel faces a real threat to its security from militant groups in Gaza,” the report says in its opening paragraphs. “The naval blockade was imposed as a legitimate security measure in order to prevent weapons from entering Gaza by sea and its implementation complied with the requirements of international law.”

The report criticizes the flotilla,saying that it “acted recklessly in attempting to breach the naval blockade.” It said that while the majority of the hundreds of people aboard the six vessels had no violent intention, that could not be said of IHH, the Turkish aid group that primarily organized the flotilla. It said, “There exist serious questions about the conduct, true nature and objectives of the flotilla organizers, particularly IHH.”

The IHH were the primary element of the crew on the Mavi Mamera. There was no violence that occurred on the other five ships, all of whom followed the orders of th eIsraeli navy to proceed peacefully into Ashdod to be inspected.

Regarding the boarding of the ship, the Palmer Report also said Israel should have issued warnings closer to the moment of action and should have first turned to nonviolent options.

Hard to say exactly what they mean here. The videos clearly show that warnings were issued and the Israeli Naval commandos boarded the ship armed with paintball guns and beanbag rounds, one reason a number of them were injured. They walked into a planned ambush. In fact, the second Israeli who came aboard was shot.

Still , all in all this is a fairly balanced report for the UN, which is one reason the Turks have tried to keep it buried for months. They're reportedly furious especially over the Palmer report's legitimizing of Israel's Naval blockade.

As for the 'Plan B' the Turks are threatening to implement, it's hard to figure what that might be. Relations between Turkey and Israel have been deteriorating sharply ever since the Islamist Erdogan government took power, and there is no longer much if any military or security cooperation. Most of the pro-Israel secular elements in the Turkish military have already been purged.

Trade sanctions by Turkey might occur, but might hurt Turkey more than Israel. The Turks not only export more to Israel than they import, but much of what Turkey imports is high tech items and weaponry for its military that are harder to replace than the ready-made clothing, fabrics, and metals Turkey exports to Israel.

The only other factor on the table is Turkey's 23,000 Jews. There's no question that life could be made much more difficult for them by an angry AKP government,and Turkey has a long history of such persecution.

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Tuesday, September 21, 2010

Israel And China Sign New Agricultural, Trade Agreements

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In a development quite appropriate for the upcoming Sukkot holiday, Deputy Foreign Minister Danny Ayalon and the governor of China's Heilongjiang Province, Mr. Du Jiahao, signed an agricultural cooperation agreement on behalf of Israel and the Chinese government.

The agreement will see the two countries cooperating in terms of assistance in constructing demonstration dairy farms. Israel and the Heilongjiang Province already have extensive agricultural agreements.
During the meeting Ayalon stressed the special relationship between Israel and China, and stated that their friendship is “based on the fact that they are both ancient cultures with historic awareness.” He added that Israel and China’s economies “complement each other. Israel has advanced technology suited to the developing Chinese market and experience in fields that top the Chinese national agenda, such as agriculture and technology.”

Governor Du Jiahao thanked Ayalon for the warm hospitality and added that he was very impressed by Israel. He said that he intends to erect a monument of Jerusalem stone in memory of the Jews who found refuge in Heilongjiang Province during the White Revolution. During that time period, Heilongjiang’s capital, Harbin, provided refuge to tens of thousands of Jews who fled from Russia.

China and Israel have increased their trade relations over the years,mostly in the fields of high tech, telecommunications, agricultural technology ( the Israelis are world leaders in irrigation technology, for example, and bio-medical products.As of 2007, the trade between the two countries had surpassed $4 billion and Israel has a number of trade offices located in China.

I would expect that Israel's trade with China's growing economy is something that is going to increase, especially as Israeli trade with Europe decreases.

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