Beyond the Military: Investigating the Civilian Role in the Argentine Dictatorship
By Tess Bennett | The Argentina Independent | December 17, 2013
Last Friday, after 13 months and 400 witness testimonies, the mega-lawsuit in Federal Court of Tucumán found 37 of 41 defendants guilty of crimes against humanity during the 1976-83 dictatorship in Argentina. In the historic trial, known as Jefatura II-Arsenales II, four civilians were among the accused: two were pardoned and two were convicted for their involvement in the dictatorship.
María Elena Guerra, a civilian and ex-police officer, and Guillermo Francisco Lopez Guerrero, a civil intelligence agent, joined a select few civilians who have been found guilty of crimes committed during the brutal seven-year military regime, in which some 30,000 people were kidnapped and killed or ‘disappeared’.
Since the trials were reopened in 2003, hundreds of members of the military have been sentenced to prison for crimes committed during the dictatorship. However, it was only in December last year that James Smart, a former government minister of the Province of Buenos Aires, became the first civilian to be convicted of crimes against humanity committed during the dictatorship. He was sentenced to life in prison for crimes committed in six clandesine detention centres.
These landmark rulings demonstrate how, after 30 years of democratic rule, the way Argentines, politicians, and the legal system examine crimes from this period has evolved, with the focus turning more recently to the role of businesses and civilians in the human rights atrocities of that period.
Human rights groups have long used the term ‘civic-military dictatorship’ to acknowledge the complicity and support of some civilian sectors. But the title has become increasingly common in recent years under the Cristina Fernández de Kirchner administration, opening the door for a number of emblematic trials investigating the role of these civilians, with the aim of bringing the impunity of the powerful to an end.
Causes of the Coup: A New Economic Model
Human rights groups argue that economic motives were behind the 24th March 1976 coup, saying it can no longer be argued that the objective was only to combat “subversion”. They believe so-called “captains of industry” collaborated with military leaders to perpetrate crimes against humanity for economic gain.
Last week, Banco de la Nación Argentina officially recognised Roberto Hugo Barrera as the 31st employee still missing – disappeared – after being kidnapped during the dictatorship. The institution has been an important player in the drive to highlight the economic motives behind the so-called ‘National Reorganisation Process’ implemented by the military junta.
Graciela Navarro, President of the Commission of the Banco de la Nación Personnel for Memory, Truth and Justice told The Argentina Independent that when identifying what occurred in 1976, it is first important to understand that there was no “war.”
“There were operations of some armed groups, but these were isolated. There was never a war here. It was always state terrorism,” she said, alluding to the still oft-used term ‘Dirty War’ by foreign press.
According to Navarro, certain civilian sectors used the military to implement a neo-liberal economic model. “It was necessary to implement an economic model of exclusion to benefit economic groups that utilised the Armed Forces as a instrument of social discipline – for repression, for fear, to deal with any resistance movement.
“The true causes of the coup were economic, because of this we say civic-military dictatorship,” she added.
Marta Santos, a former Central Bank employee and friend of one of the five known desaparecidos (missing) who worked at the institution, echoes this view.
“This dictatorship, this military force, needed the support of civilians in key parts of the state and in the private economy… In this sense we say that dictatorship was civic-military because it pursued neo-liberal economic interests of private [business] and the state,” says Santos, who today is part of a team working with the Central Bank to investigate if there are more unknown desaparecidos who worked there.
Civilians in Government
Santos says it is important to denounce civilian collusion with the military junta in the defence of democracy, to ensure these institutions can never again prop up a dictatorship. She names José Alfredo Martínez de Hoz as the prime example of civilian involvement.
Former president of the steel company Acindar – which operated one of the country’s first clandestine torture and detention centres on its premises in 1975 – Martínez de Hoz was economy minister from 1976 to 1981, in charge of ushering in a new economic paradigm based on the principles of neo-liberalism. During this period, it was common for businessmen close to the economy minister to assume key government roles, helping to fuse civil society to the military junta. His policies sowed the seeds for financial collapse, providing a brief period of prosperity but leading to a deep recession in 1981 and saddling the nation with a burdensome external debt that would cause problems long after the return to democracy.
José Martínez de Hoz – 1976
Martínez de Hoz was under house arrest when he died in March this year, being investigated for his alleged role in the kidnap of father and son, Federico and Miguel Gutheim. The family owned the cotton export company Sadeco, and were allegedly coerced into making business deals that favoured the dictatorship.
He was also linked to the kidnap of René Carlos Alberto Grassi, director de Industrias Siderúrgicas Grassi (a rival company of Acindar) and president of the Bank of Hurlingham, in September 1978. Grassi was held in Campo de Mayo for a year after his abduction, and eventually Industrias Siderúrgicas Grassi was absorbed by Acindar. One month before the abduction, Martínez de Hoz had asked to buy the Bank of Hurlingham and was declined.
From the early days of the dictatorship there was a strong repression of workers, but the kidnap of Grassi was significant; he did not pose a threat as an opposition force to the regime, his value was economic.
Martínez de Hoz was pardoned by Menem in 1990, though this was annulled 16 years later when the Gutheim case was reopened. Up until his death, he denied any involvement in the kidnappings and was a remorseless defender of the dictatorship-era economic policies.
The investigation of Martínez de Hoz is an early example of a civilian investigated for abuses committed during the reign of the military junta. In recent years, many more legal battles concerning civilian’s roles in the dictatorship have come to the surface.
Thirty Years of Reconstruction
Horacio Verbitsky, president of CELS and co-author of the 2013 book ‘Cuentas pendientes: los cómplices económicos de la dictadura’, which examines the links between economic powers and state repression, argues the economic influence of civilians who were complicit in the dictatorship continued throughout the first two decades of democracy. Verbitsky argues that economic powers could have endangered the stability of democracy, which limited the possibility of pursuing justice for their responsibility during the dictatorship.
Argentina’s first president after the return of democracy, Raúl Alfonsín, had the complex task of addressing human rights abuses in the face of a weak economy and massive external debt, which had ballooned from US$7.87bn in 1975 to US$43bn in 1982.
“It is not easy to build democracy in a setting where political culture and civic habits have been degraded by authoritarianism. Nor is it easy to build democracy in the midst of a deep economic crisis exacerbated by the need to repay a huge foreign debt that the old dictatorial regime had contracted and irresponsibly misspent,” Alfonsín said in 1992, after his term had ended prematurely in 1989.
Videla and other military chiefs are found guilty of crimes against humanity in 1985.
The neo-liberal economic paradigm that dominated the nineties – a time that corresponded with the amnesty offered to those responsible in the dictatorship – deepened the economic model launched in 1976, taking it to the economic and political crisis of 2001.
Graciela Navarro believes that since Nestor Kirchner took office in 2003 there have been two distinct periods relating to the last civic-military dictatorship, the first being the recovery of the memory of those who had been tortured or disappeared, and the end of impunity for military leaders. “When Cristina was elected,” Navarro believes, “it was possible to begin to examine the true causes of the coup, which were economic, and charge those who are responsible.
“The military has been judged,” adds Navarro, “but many civilians, if not them then their children, are owners of the large economic groups… this is difficult. These are the interests that Cristina is dealing with.”
Pending Cases
After years of impunity, Argentina’s legal system has begun to investigate the role of officials, powerful businessmen, and mulitnationals who may have collaborated with the military in state terrorism. According to the Centre for Legal and Social Studies (CELS), as of September 2013 there were a total of 261 civilians accused of involvement in the human rights abuses of the era.
Several high profile and emblematic cases involving civilians, and their business interests, are currently making their way through the legal system.
Papel Prensa: On 2nd November, 1976, three newspapers – Clarín, La Nación, and La Razón – obtained the majority shares in Papel Prensa, the company which produces newsprint for the industry, soon after owner, businessman and banker David Graiver, died in a plane crash in Mexico in August 1976. Graiver’s widow, Lidia Papaleo testified in 2010 that at that time she was stripped of the factory after receiving death threats against her and her young daughter. In March 1977, Papaleo was abducted and tortured until she was released on July 24, 1982.
The case concerning the sale of Papel Prensa was opened in August 2010 after President Fernández presented a report in the Casa Rosada titled “Papel Prensa: The Truth” denouncing the “illegal appropriation” of the business. Most recently, the case has been in the headlines after the discovery of official minutes from the dictatorship that mention Papel Prensa 13 times between September 1976 and November 1977.
According to Defence Minister Agustín Rossi, the minutes make it “clear that for the Junta, Papel Prensa was a part of the same theme as the detention of [ex-owners] the Graiver family… this appears clearly in the minutes.” Copies of the documents are now in the hands of Federal Judge Julián Ercolini, who has jurisdiction over the case.
Ledesma: Also working its way through the legal system is a case involving president of sugar company Ledesma, one of Argentina’s most powerful businesses, for his involvement in kidnappings during the ‘blackout night’, when over 400 people were kidnapped in the province of Jujuy following an electricity outage on 20th July, 1976.
President of Ledesma Carlos Blaquier and former general manager Alberto Lemos are accused of providing the vehicles that were used for transporting the victims. This month, the Federal Court of Salta confirmed that there is sufficient evidence that the company Ledesma collaborated in the kidnapping of their workers to dismantle the labour union. As a result, Blaquier and Lemos will be put on trial, which is set to begin in April 2014. The court upheld that Blaquier will be prosecuted as a “necessary participant” in twenty cases of illegal deprivation of liberty and Lemos is accused of being a “secondary participant” to the kidnappings.
Ford: During the dictatorship, the Ford Falcon became known as a vehicle commonly used by kidnappers. But the company is also accused of more direct involvement in the human rights abuses of the time.
In May, charges were laid against three ex-directors of Ford Motors Argentina for their role in the disappearance of 24 workers from the plant. Former plant manager Pedro Müller, ex-leader of labour relations Guillermo Galarraga, and ex-security chief Héctor Sibilla are accused of having given to military commanders in the area “personal data, photographs, and addresses” of workers at the factory between 24th March and 20th August, 1976.
The three men are also accused of having allowed the military to use the factory as a detention centre where they carried out the interrogation of the workers. According to Judge Alicia Vence, the workers were “tied up with their faces covered and beaten.”
Although 24 workers survived the kidnapping and torture, only twelve are still alive today. The formal legal process began in 2001 but the first reports of the events date back to 1984.
Mercedes Benz: The families of 17 workers from the Mercedes Benz plant who were kidnapped and tortured have bought a civil case against the parent company of the car maker, Daimler Chrysler, in the US. Mercedes-Benz Argentina is alleged to have identified workers who were kidnapped and sent to the clandestine torture centre, Campo de Mayo, during the dictatorship.
The investigation began in 2004 and has been rejected by US courts on previous occasions, with the US Supreme Court currently determining if the case falls under its jurisdiction. A decision is expected in the coming months on whether multinational corporations can be sued in US courts for alleged human rights abuses abroad.
In Argentina, the lawsuit for kidnapping and torture of the 17 workers, 14 of whom are still missing, was initiated by journalist Gabriela Weber in 2002 and in 2006 was transferred to Federal Court in San Martín under the charge of Judge Alicia Vence. So far no one has been formally charged or arrested.
The car maker is also accused of the appropriation of three children, and the adoption and substitution of identity of Paula Logares, the first grandchildren reclaimed by the Abuelas de Plaza de Mayo in 1987.
US-Israeli Security Company Selling Mobile Phone Surveillance Products To Agencies Around The World
By Tim Cushing | Techdirt | December 17, 2013
Privacy International, which has done a very thorough job digging into the backgrounds of the many private companies involved in the surveillance “industry” around the world, has just released a promotional document from the American-Israeli Verint, a security company that provides NSA-level cell phone surveillance power to entities around the world.
[A] scaled down version of this system is also being sold by private surveillance contractors to the highest bidder. The company behind it? Israeli-American company Verint. Their Skylock technology claims to have the ability to “Remotely locate GSM and UMTS targets located anywhere in the world at cell level precision”.
The brochure Privacy Int’l obtained doesn’t go into detail as to how it achieves this, but what is shown is both impressive and disturbing.
From a brochure collected this year we have discovered one of the newest additions to Verint’s product line: mobile phone tracking on an international scale. Previously, mobile phone tracking required presence in the particular areas of interest, focusing on the tracking of phones through monitoring Base Stations (Cell Towers) and local networks to pinpoint location. In the past, if a law enforcement agency wanted location data they requested information from the relevant telecommunication firm operating in that specific territory. By way of an example, this would result in the UK not being able to obtain a French mobile phone’s location without help from the French. Now it would appear that Verint have bypassed the territoriality requirement.With this latest news, we know that location tracking has become borderless in the same way as communications surveillance. The ability to do this has likely come from a focus on international phone systems rather than domestic or regional networks which would never reach the worldwide nature of location tracking Verint is advertising.
Some details on Verint’s SKYLOCK offering are available online (under the name ENGAGE). While the brochure seems to indicate this is solely a military product (the brochure cover only lists “Military, Special Forces, Navy, Search and Rescue, Border Control” and the photos contained show only military personnel), the inside notes make it clear these products are available to “law enforcement” as well.
As Privacy Int’l points out, Verint’s offering operates “independently of local service providers,” meaning pretty much every legal obstacle is demolished. What no one knows is going on won’t hurt them. One product is targeted at satellite communications, but even considering that limited scope, it’s still very powerful.
Here’s what ENGAGE/SKYLOCK can do:
– Intercept voice calls and text messages
– Decrypt A5/1 and A5/2 encryptions with an embedded decipher
– Operate undetected leaving no electromagnetic signature
– Selectively downgrade UMTS traffic to GSM
Other ENGAGE products target wireless communications. Verint’s intercept-in-a-box can do all of the following.
– Actively and passively intercept WiFi communications based on: 802.11 a/b/g/n, 2.4Ghz, and 5GHz
– Active interception of mobile handsets, even when not intentionally connected to a WiFi network
– Intercept target communication at a distance with zero packet loss
– Choose from multiple active interception methods to overcome encryption of private communication
– Identify access points and intercept MAC addresses in the area
Verint also gives its purchasers the power to target phones using 3G networks, remotely activate cell phone mics, and block cellular communication.
The capabilities that were presumed to only be in the hands of national intelligence agencies now can be had by nearly anyone who can come up with the money. Powerful cell phone surveillance products are a growth market. Anything that can increase data and communication harvesting while simultaneously eliminating a majority of legal restrictions and oversight practically sells itself.
We may feel this sort of power is OK in the “right hands,” but we don’t get to decide which hands this ends up in. We may believe the NSA should be able to do this sort of thing (overseas, preferably), but that local law enforcement agencies should be forced to jump through warrant and subpoena hoops before tracking locations and intercepting communications. But ultimately it doesn’t matter what we prefer. That call is made by Verint and it’s in the business of selling surveillance products, not protecting the privacy of the world’s citizens.
Related article
- Israeli company to win Indian mass electronic surveillance contract (altahrir.wordpress.com)
ACLU calls for Massachusetts moratorium on controversial license plate readers
ACLU – 12/14/2013
BOSTON — The ACLU of Massachusetts calls for a moratorium on the use of controversial and unregulated license plate scanner technology in all Massachusetts police departments, following a Boston Globe exposé of problems in the Boston Police Department’s program.
The story, published in today’s Globe, shows that contrary to officials’ claims about why departments need the technology, police routinely do not respond to live ‘hits’ alerting them to the location of stolen cars. This suggests that the program is, as the ACLU feared, largely oriented towards compiling vast databases enabling the warrantless tracking of millions of innocent motorists.
In response to these alarming findings, the Boston Police Department announced it would suspend the program, at least until proper oversight and procedures are put into place.
“The Globe’s investigation into the Boston Police Department’s license plate reader program, based largely on a series of public records requests initiated nearly a year ago, confirms that police departments need outside oversight and guidance in order to responsibly use this powerful technology. We applaud the Boston police decision to suspend the program,” said Kade Crockford, director of the Technology for Liberty project at the ACLU of Massachusetts. “In light of these disturbing revelations, no police department in the state should continue to use this technology until the legislature passes the License Plate Privacy Act. We need uniform statewide rules for departments’ use of plate readers.”
Currently the Massachusetts State Police and more than 50 cities and towns deploy license plate scanners, which snap photographs of each license plate they encounter, noting the time, date and location, and run the plate numbers against “hot lists” to identify stolen cars, outstanding warrants and other violations. Today, no license plate reader program in the state is subject to outside regulation.
“The License Plate Privacy Act will establish accountability and public transparency requirements to ensure that the kinds of abuses the Globe uncovered at the Boston Police Department are not happening in other cities and towns,” said Crockford. “Technologies that target ordinary Americans going about their everyday lives create tremendous opportunity for abuse, without keeping us safe. We must ensure that the law keeps pace with these new technologies.”
The License Plate Privacy Act allows departments to use license plate readers to identify cars associated with criminal suspects or crimes, while preventing the government from amassing databases containing the historical travel records of millions of innocent people.
“The Globe’s investigation makes crystal clear that departments cannot police their own use of this complex and powerful tool,” said Crockford. “The legislature must step in to provide some basic rules, as well as checks and balances to make sure license plate readers aren’t used for warrantless tracking of innocent drivers. The Joint Transportation Committee should recommend swift approval of the License Plate Privacy Act, the legislature should pass it, and the Governor should sign it into law.”
Advanced surveillance tools can work to promote public safety while simultaneously respecting the privacy and liberty interests that help our Commonwealth thrive, but in order for that to happen the law needs to catch up with the technology. The License Plate Privacy Act strikes the right balance. Police departments statewide should follow Boston’s lead and immediately halt their use of the technology until the legislature acts.
For more on the License Plate Privacy Act, go to:
https://aclum.org/privacy_agenda#LPA
To take action on this issue, go to:
https://ssl.capwiz.com/aclu/ma/issues/alert/?alertid=63008551&type=ML
For more information about automatic license plate readers, go to:
https://www.aclu.org/alpr
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‘Excuse to throw us out’: Spanish cave dwellers say authorities’ actions ‘unlawful’
RT | December 14, 2013
A rare way of life is under threat in Spain where authorities have renewed attempts to evict dozens of cave-dwelling families from their homes in an ancient settlement in Granada. Residents say “it’s a disgrace”, and are determined to resist eviction.
Throughout the week dozens of activists have been protesting the eviction they deem unlawful and unfair.
The San Miguel cave dwellers say they have been the victims of the authorities, violating their human rights, and evicting people for cynical reasons only.
San Miguel is the site of one of the four main cave neighborhoods in Southern Spain. For over a thousand years, hundreds of caves carved out of the eye-catching hilltop have been home to gypsies and other homeless settlers.
Abandoned in the 1960s, in recent times eight caves have been occupied by squatters, who reclaimed them to turn them into modest and unconventional homes.
However, several years ago the council announced plans to turn the site into a tourist attraction. The Sacramento caveman heritage would include flamenco caves for tourists, a number of “artisan” and souvenir workshops, as well the main landmark – a hotel – which, according to the council, would “respect the harmony of the area”. The caves happen to be located in a lucrative location, affording the best views over the city, which relies on a robust tourism economy.
The authorities aren’t ruling out the possibility of going to court to get an eviction order. According to the cave dwellers, the court in Strasbourg has already ruled that eviction must be suspended until they have been provided with proper accommodation.
On Thursday, Granada’s city council proposed providing social housing to the cave dwellers.
RT’s Lucy Kafanov, reporting from the site, spoke to local residents and activists who told her it’s the third attempt by the authorities to clear cave dwellings in the past six years. Officials have repeatedly claimed that the “hand-made” homes built there are dangerous.
A spokesman for the cave dwellers argues their homes may be lacking fancy furniture but are perfectly habitable. Juan Antonio Parra told RT that should eviction take place this time round, people will band together to resist it.
“We certainly will resist, using every legal means available. Which is more than can be said of the city council, whose actions have been unlawful and underhand all along the way. First, they have no property rights on the caves. Secondly, they never did an expert assessment of the caves’ condition. There have been no cave-ins in any of the caves that the city council proclaimed to be crumbling as far back as three years ago, not even after the heavy rainfall we have had. So we can see their lie for what it is: they just need an excuse to throw us out.”
Parra says that what is happening these days is in fact highly reminiscent of past events.
“This has happened before, the seizures and the evictions: under the Francoist regime, and before that, during the reign of the Catholic kings. These caves have always sheltered Arabs, Gypsies, etc. The past still prevails in this part of Granada, so we believe the authorities will not succeed here.”
Local activist, Antonio Redondo, believes that plans to evict the cave dwellers have nothing to do with worries about comfortable and safe living conditions.
“It is a disgrace. This has nothing to do with concerns for the people. The government cares nothing for the fact that there are some 500 evictions administered in Andalusia every day. Instead, they keep trying to exploit the situation. They insist on eviction rather than carry out an assessment of the caves’ condition, or call a town hall meeting with the cave dwellers in order to explain the makeover plan and offer to relocate the inhabitants. This shows how totally unconcerned they are about these people.”
The government of Andalusia is expected to bring experts to the site to evaluate it. The cave dwellers are also looking for independent architects to confirm that their houses are a safe place to live.
In a bid to resolve the escalating crisis, the activists are planning to establish a co-op tenant council to help sort out property rights.
“After all, these caves belong to the original settlers. That makes the city council complicit of a fraudulent sale scheme, where all of their assets are effectively illegal,” Parra told RT.
“Right now, we are attending various meetings to figure out what our nearest future looks like.”
So far initial plans to convert the caves into a tourist area have been canceled due to the global economic crisis.
Spain, whose banks suffered a severe blow during the financial downturn, is said to be slowly emerging from a deep economic slump. Although Spain’s economy grew 0.1 percent in the July-to-September period, it still has one of the highest unemployment rates in the industrialized world. Earlier this year, the International Monetary Fund predicted that the debt-ridden country is likely to be saddled with unemployment of about 25 percent until up to 2018. Unpopular austerity measures have led to riots across the country.
Four Kaupthing Banking Executives Sentenced To Prison
By Paul Fontaine – Grapevine – December 12, 2013
In a landmark ruling, Reykjavík District Court sentenced four former executives of Kaupthing Bank to between 3 and 5 1/2 years in prison for financial crimes dating back to 2008.
Vísir reports that former Kaupthing director Hreiðar Már Sigurðsson received the heaviest sentence: five and a half years, minus time already spent in custody. He was also sentenced to pay 33.4 million ISK in legal fees.
Former Kaupthing chairperson – and former Interpol fugitive – Sigurður Einarsson was sentenced to five years, and a total of 14.3 million ISK in legal fees.
Investor Ólafur Ólafsson was sentenced to three and a half years, and 20.6 million ISK in legal fees.
Former director of the Luxemborg branch of Kaupthing Magnús Guðmundsson was sentenced to three years in prison.
In the court’s opinion, the four conspired to conceal the fact that one of the investors in Kaupthing, Mohammad Bin Khalifa Al-Thani, owned his 5.01% stake in the bank thanks to money lent to him by the bank itself.
Investigations into the four go back to the Icelandic bank crash of autumn 2008. In the wake of a report on the contributing causes of the crash from the Special Investigative Commission, the Special Prosecutor’s Office was created. The office targeted many top bank officials from Glitnir and Kaupthing.
Eva Joly, who at one point served as an assistant to the Special Prosecutor, told the Grapevine last year that Iceland should “be proud you invested in these investigations”, while cautioning to have patience – investigations were three years along at the time.
The four are expected to appeal the decision to the Supreme Court. All of their prison sentences are non-probationary.
Paul Krugman’s Ignorant Assessment Of TPP Shows What A Nefarious Proposal It Is
By Mike Masnick | Techdirt | December 13, 2013
… It appears that Krugman has decided to discuss the TPP agreement after many of his readers asked him to weigh in. And his response is basically to dismiss the entire agreement as not really being a big deal one way or the other. The entire crux of his analysis can be summed up as: trade between most of the countries in the negotiations are already quite liberalized, so removing a few more trade barriers is unlikely to have much of a consequence. Therefore, the agreement is no big deal and he doesn’t get why people are so up in arms over it.
On his basic reasoning, he’s correct. There’s little trade benefit to be gained here. In fact, some countries have already realized this. But that’s why the TPP is so nefarious. It’s being pitched as a sort of “free trade deal,” and Krugman analyzes it solely on that basis. That’s exactly what the USTR would like people to think, and it’s part of the reason why they’ve refused to be even the slightest bit transparent about what’s actually in the agreement.
Instead, the TPP has always been a trade liberalization agreement in name only. Sure, there’s some of that in there, but it’s always been about pushing for regulatory change in other countries around the globe, using trade as the club to get countries to pass laws that US companies like. That’s why there’s an “IP chapter” that is entirely about building up barriers to trade in a so-called “free trade” agreement. It’s why a key component of the bill is the corporate sovereignty provisions, frequently called “investor state dispute settlement” (in order to lull you to sleep, rather than get you angry), which allow companies to sue countries if they pass laws that those companies feel undermine their profits (e.g., if they improve patent laws to reject obvious patents — leading angry pharmaceutical companies to demand half a billion dollars in lost “expected profits.”)
Krugman judging the TPP solely on its net impact on trade is exactly what TPP supporters are hoping will happen, so it’s disappointing that he would fall into that trap. Thankfully, economist Dean Baker, who does understand what’s really in TPP, was quick to write up a powerful and detailed response to Krugman that is worth reading.
However it is a misunderstanding to see the TPP as being about trade. This is a deal that focuses on changes in regulatory structures to lock in pro-corporate rules. Using a “trade” agreement provides a mechanism to lock in rules that it would be difficult, if not impossible, to get through the normal political process.
To take a couple of examples, our drug patent policy (that’s patent protection, as in protectionism) is a seething cesspool of corruption. It increases the amount that we pay for drugs by an order of magnitude and leads to endless tales of corruption. Economic theory predicts that when you raise the price of a product 1000 percent or more above the free market price you will get all forms of illegal and unethical activity from companies pursuing patent rents.
Anyhow, the U.S. and European drug companies face a serious threat in the developing world. If these countries don’t enforce patents in the same way as we do, then the drugs that sell for hundreds or thousands of dollars per prescription in the U.S. may sell for $5 or $10 per prescription in the developing world. With drug prices going ever higher, it will be hard to maintain this sort of segmented market. Either people in the U.S. will go to the cheap drugs or the cheap drugs will come here.
For this reason, trade deals like the TPP, in which they hope to eventually incorporate India and other major suppliers of low cost generics, can be very important. The drug companies would like to bring these producers into line and impose high prices everywhere. (Yes, we need to pay for research. And yes, there are far more efficient mechanisms
for financing research than government granted patent monopolies.)
Saudi Arabia Buys 15,000 U.S. Anti-Tank Missiles for a War It Will Never Fight
Al-Manar | December 13, 2013
No one is expecting a tank invasion of Saudi Arabia anytime soon, but the kingdom just put in a huge order for U.S.-made anti-tank missiles that has Saudi-watchers scratching their heads and wondering whether the deal is related to Riyadh’s support for the Syrian rebels, Foreign Policy reported.
The proposed weapons deal, which the Pentagon notified Congress of in early December, would provide Riyadh with more than 15,000 Raytheon anti-tank missiles at a cost of over $1 billion. According to the International Institute for Strategic Studies’ Military Balance report, Saudi Arabia’s total stockpile this year amounted to slightly more than 4,000 anti-tank missiles. In the past decade, the Pentagon has notified Congress of only one other sale of anti-tank missiles to Saudi Arabia — a 2009 deal that shipped roughly 5,000 missiles to the kingdom.
“It’s a very large number of missiles, including the most advanced version of the TOWs [tube-launched, optically tracked, wire-guided missiles],” said Jeffrey White, a fellow at the Washington Institute for Near East Policy and a former intelligence analyst at the Defense Intelligence Agency. “The problem is: What’s the threat?”
That’s a tough question to answer. A military engagement with Iran, the most immediate potential threat faced by Riyadh, would be largely a naval and air engagement over the Persian Gulf. Saudi Arabia has fought a series of deadly skirmishes with insurgents in northern Yemen over the years, but those groups have no more than a handful of military vehicles. And Iraq, which posed a real threat during Saddam Hussein’s day, is far too consumed by its internal demons and the fallout from the war in Syria to ponder such foreign adventurism.
But one Saudi ally could desperately use anti-tank weapons — the Syrian rebels. In the past, Riyadh has been happy to oblige: It previously purchased anti-tank weapons from Croatia and funneled them to anti-Assad fighters, and it is now training and arming Syrian rebels in Jordan. Charles Lister, a London-based terrorism and insurgency analyst, said that rebels have also received as many as 100 Chinese HJ-8 anti-tank missiles from across the border with Jordan — and indeed, many videos show Syrian rebels using this weapon against Bashar al-Assad’s tanks.
While most of the rebels’ anti-tank weapons were seized from Assad’s armories, Lister also believes that several dozen 9M113 Konkurs missiles, an old Soviet weapon, were provided to Islamist rebels in northern Syria this summer. And when these missiles have found their way to the battlefield, they’ve helped the rebels break through the belts of armor Assad uses to protect strategic areas: “Neutralizing these external defenses has proven key to opening the gates for ground assaults,” Lister said.
The Saudis can’t send U.S. anti-tank missiles directly to the rebels — Washington has strict laws against that. Recipients of U.S. arms are not allowed to transfer weapons to a third party without the explicit approval of the U.S. government, which in the case of Saudi Arabia has not been granted. Given Washington’s heightened concern over radical Islamist forces seizing control over the conflict — which resulted in the suspension of nonlethal aid to Syrian rebels on Dec. 12 — that approval will almost certainly never be given. If Riyadh went ahead and transferred the weapons anyway, it “would be a serious breach of U.S. law,” said Aram Nerguizian, a senior fellow at the Center for Strategic and International Studies, that would “all but certainly lead to a suspension of existing arms sales agreements.” So far, only one American anti-tank missile has been identified in Syria — an older model that Lister speculates may have been sold to Shah-era Iran, transferred to the Assad regime, and then captured by the rebels.
But while the latest American anti-tank weapons might not be showing up in Aleppo anytime soon, that doesn’t mean the deal is totally disconnected from Saudi efforts to arm the Syrian rebels. What may be happening, analysts say, is that the Saudis are sending their stockpiles of anti-tank weapons bought from elsewhere to Syria and are purchasing U.S. missiles to replenish their own stockpiles. “I would speculate that with an order of this size, the Saudis were flushing their current stocks in the direction of the opposition and replacing them with new munitions,” said Charles Freeman, a former U.S. ambassador to Saudi Arabia.
Regardless of how this purchase of anti-tank missiles relates to Syria, it’s undoubtedly part of a larger Saudi arms buildup that has been going on for nearly a decade. From 2004 to 2011, according to a 2012 report by the Congressional Research Service, Riyadh signed $75.7 billion worth of arms transfer agreements — by far the most of any developing nation. The United States was the major benefactor of this Saudi largesse, as the deals bumped up U.S. arms sales to a record $66 billion in 2011 alone.
How the Saudis plan to use many of these weapons is a mystery. And it’s not just the anti-tank missiles whose purpose remains unclear. Riyadh recently bought advanced fighter jets from the United States for a whopping $30 billion — but the Saudis’ lack of pilots and ability to maintain them means that it’s an open question how long they can keep them airborne, said William Hartung, the director of the Arms and Security Project at the Center for International Policy.
But purchasing the weapons, rather than any intent to use them, may be the point for the Saudis. At a time when they are at odds with Washington over the Obama administration’s diplomacy with Iran and nonintervention in Syria, the kingdom’s deep pockets can at least make sure their ties to the Pentagon remain as strong as ever.
“There was a [Washington] lobbyist who used to say, ‘When you buy U.S. weapons, you’re not just buying the weapon — you’re buying a relationship with the United States,'” said Hartung. “I think that’s kind of the concept.”
U.S. to Destroy a Half-Billion Dollars’ Worth of Unused Aircraft in Afghanistan
By Noel Brinkerhoff | AllGov | December 13, 2013
The U.S. military has decided to scrap nearly half a billion dollars worth of aircraft purchased for Afghanistan’s air force because the planes couldn’t handle the climate, among other problems.
A total of 16 cargo planes, the G222 manufactured by Italy’s Finmeccanica, now sit at Kabul International Airport. They were flown only 200 of the 4,500 hours scheduled for flight training by Afghan pilots before the U.S. decided to shut them down.
The Obama administration spent $486 million to purchase the aircraft, which were supposed to comprise 15% of the Afghan Air Force.
“We need answers to this huge waste of U.S. taxpayer money,” John Sopko, the Special Inspector General for Afghanistan Reconstruction who is investigating the matter, said in an email to Bloomberg. “Who made the decision to purchase these planes, and why? We need to get to the bottom of this, and that’s why we’re opening this inquiry.”
A January 31 Pentagon Inspector General report, marked “For Official Use Only,” criticized NATO and U.S. training commands for “hav[ing] not effectively managed the program.”
Lieutenant General Charles Davis, the U.S. Air Force’s top military acquisition official, told Bloomberg: “Just about everything you can think of was wrong for it other than the airplane was built for the size of cargo and mission they needed.”
“Other than that, it didn’t really meet any of the requirements,” he added.
A key problem was that the planes couldn’t handle the heat and dust of Afghanistan’s environment, which caused numerous maintenance troubles and prevented them from flying.
Davis said the Air Force tried to sell the aircraft to another country, but couldn’t locate any buyers. So now they will be dismantled for parts.
The U.S. decided to replace the G222s with American-made C-130H transports for the Afghan Air Force to use. But the replacements won’t be available until 2016.
To Learn More:
- Planes Parked in Weeds in Kabul After $486 Million Spent (by Tony Capaccio, Bloomberg)
- Notification of Special Project: Lessons Learned Review of the G222 (C-27A) Aircraft Program (Office of the Special Inspector General for Afghanistan Reconstruction)
- Fleet of Planes from $486 Million Program for Afghan Security Forces Scheduled to Be Destroyed (by Hanqing Chen, Daily Beast)
- U.S.-Led Military Unit in Afghanistan Lost $230 Million in Spare Parts, Then Spent $138 Million for More (by Noel Brinkerhoff, AllGov)
- U.S. Military Builds $34-Million High-Tech Operations Complex in Afghanistan…and Will Never Use It (by Noel Brinkerhoff and Danny Biederman, AllGov)
- U.S. Military to Shred Thousands of Million-Dollar Armored Vehicles in Afghanistan (by Noel Brinkerhoff, AllGov)
European Court of Justice officer argues against EU Data Retention Directive
DW | December 12, 2013
An EU law requiring companies to log telecommunications data for law enforcement breaches rights, an advocate-general of Europe’s top court has said. Germany in particular had challenged the Data Retention Directive.
Thursday’s opinion at the European Court of Justice in Luxembourg responds to challenges against the directive in Ireland and Austria. Adopted the by the EU in 2006 following attacks on the London tube and trains in Madrid , the Data Retention Directive specifies that firms must save telephone and Internet data – user, recipient and length of calls – for a period of up to two years.
“The directive constitutes a serious interference with the fundamental right of citizens to privacy,” Advocate-General Pedro Cruz Villalon said. “The use of those data may make it possible to create a both faithful and exhaustive map of a large portion of a person’s conduct strictly forming part of his private life, or even a complete and accurate picture of his private identity,” he added.
Cruz Villalon argued that the directive increased the risk that corporations and individuals could use the data for unlawful and possibly fraudulent or malicious purposes – even more so as private communication companies controlled the information rather than public authorities. Cruz Villalon also called the directive invalid because it failed to sufficiently specify the circumstances for data access, storage and use – leaving this for member states to define. In addition, Cruz Villalon called one year a disproportionately long time to hold so much information – let alone two.
Relevance, ‘even urgency’
The advocate-general did recognize the “relevance and even urgency” of data retention measures. Should the court decide to follow his opinion, Cruz Villalon suggested that it grant a grace period to change the directive, rather than taking immediate measures against it.
At any given time, the European Court of Justice has nine advocates general, who provide legal but nonbinding opinion ahead of deliberations and decisions by judges.
Germany does not currently comply with the Data Retention Directive, owing in large part to a Constitutional Court ban on the legislation in 2010. The forthcoming grand coalition government hopes to limit data storage in Europe to three months.
US ‘defence’ budget includes additional military aid for Israel
MEMO | December 12, 2013
Lawmakers in the US Congress reached an agreement on Monday in both the House and the Senate on the proposed federal budget for 2014, which would allocate $520.5 billion for defence spending and $491.8 billion for non-defence.
The defence budget includes an increase in military aid to Israel that will be given as private aid, thus it will be in addition to the $3.1 billion dollars already given annually to Tel Aviv.
The budget is still awaiting formal approval and the exact amount of additional aid to Israel remains unclear.
Israeli newspaper Haaretz reported that the US House of Representatives Armed Services Committee had endorsed an increase of $488 million in military aid to Israel to pay for Israel’s procurement and development of additional rocket and missile interception systems. The newspaper noted that this sum is considerably higher than previously expected.
However, Reuters news agency reported that the additional military aid to Israel would exceed $500 million after a compromise defence bill proposed on Monday agreed to boost US spending on missile defence by $358 million to $9.5 billion, mandating another homeland defence radar and increased funding for US-Israeli cooperative efforts.
Israel’s Channel 7 News reported that US President Barack Obama had originally requested $220 million of additional private military aid to Israel to buy extra Iron Dome short-range interceptor missiles and the batteries they are launched from, which was approved.
According to the Israeli media network, in addition to the above, the supplementary aid will allocate $173 million in funding for US-Israeli cooperative missile defence programs, which includes “nearly $34 million to improve the Arrow weapon system and $22 million for work on developing another, more advanced interceptor,” noting that, “The move signals further cooperation between Boeing and Israel Aerospace Industries (IAI).”
The new budget will also allocate $117.2 million to Israel for the “development of the David’s Sling short-range ballistic missile defence system, which is being developed jointly by Israel’s state-owned Rafael Advanced Defence Systems and the US’s Raytheon.”
Furthermore, “An additional $15 million will be directed for US co-production of Iron Dome components. Raytheon has a joint marketing agreement with Israeli state-owned manufacturer Rafael Advanced Defence Systems for the Iron Dome system.”
Both the US and Israeli media are reporting that the supplemental funds are intended to protect Israel from the increasing threats coming from Iran, Gaza and Hezbollah in Lebanon.
In addition to the supplemental aid, US Secretary of Defence Chuck Hagel has promised Israel that the existing $3.1 billion package of military aid would remain intact, despite US spending cuts.
The final vote on the budget is expected to take place before Congress leaves for the year.
Haaretz noted that, “Despite frequent disputes with Prime Minister Benjamin Netanyahu’s government regarding the peace process with the Palestinians and the Iranian nuclear threat, US President Barack Obama’s administration continues to be extraordinarily generous when it comes to granting military aid. Israeli defence officials see last week’s decision as further evidence of the strength of the relationship between the two countries.”
Related article
- Congress triples Obama’s request on defense cooperation with Israel (timesofisrael.com)
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Biden’s Closed Circle on Russia
An excerpt from ‘The Great Betrayal’
By James W. Carden | The Realist Review | June 14, 2026
Joe Biden’s presidency may ultimately come to be seen as a cautionary tale. Here was a president who showed little interest in entertaining arguments that might have contradicted his most deeply held assumptions.[1] And there were precious few within the upper ranks of the administration who might have attempted to do so, after all, only policy hands and political operatives who had come up through the ranks of the Clinton and Obama administrations or had longstanding ties to the citadels of the foreign policy community were invited into the fold. … continue
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