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Russia expects progress in Iranian nuclear talks

Xinhua – 2013-04-03

MOSCOW – Moscow hopes proposals made by world mediators to Iran over its nuclear program could lay the foundation for negotiations on solving the problem, Deputy Foreign Minister Igor Morgulov said Wednesday.

Russia was “closely coordinating” with the P5+1 group, which includes China, France, Russia, the United Kingdom, the United States and Germany, on the Iranian nuclear issue, Morgulov told the Interfax news agency.

Moscow expected “an updated package of demands” given by the Sextet to Iran during the late February Almaty meeting could lay the foundation for “consistent progress” in the nuclear talks, Morgulov said.

The parties held expert-level nuclear talks in Istanbul in late March to discuss a revised proposal that asks Iran to suspend its enrichment of uranium and disable the underground Fordow facility in exchange for limited sanction relief.

The next round of nuclear talks is scheduled for April 5-6 in Almaty, Kazakhstan.

Russia believes a long-term settlement towards the Iranian nuclear issue should be based on the recognition of Iran’s “unconditional right to develop its civilian nuclear program,” Morgulov said.

Meanwhile, Russia highly values close dialogue with China over the Iranian nuclear program, as the two countries shared common positions in many aspects, he added.

Russia, together with China, believe the use of unilateral sanctions and political pressure on Iran only lead to a dead end, Morgulov said, adding that such moves were counterproductive and undermined diplomatic efforts in solving the problem.

April 4, 2013 Posted by | Aletho News | , , , , | Leave a comment

Chinese tanker loads Iranian crude for first time since EU ban

Press TV – April 3, 2013

A Chinese supertanker loaded crude from Iran’s largest export terminal in late March, for the first time since Europe enforced sanctions on Iranian oil shipment insurers in July 2012.

According to shipping data and a Chinese industry official, the Yuan Yang Hu supertanker, able to haul 2 million barrels of crude, docked at Kharg Island on March 20-21 and is currently en route to China.

The vessel is owned by Dalian Ocean, a subsidiary of state shipping giant China Ocean Shipping (Group) Company (COSCO).

At the beginning of 2012, the US and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

China has relied mainly on the National Iranian Tanker Company (NITC) to ship Iranian crude to Chinese refineries over the past nine months.

According to Chinese customs data, China imported about 410,000 bpd of Iranian crude in the first two months of 2013, a figure which is 3 percent higher than one year earlier.

The US has spearheaded several rounds of Western sanctions against Iran in recent years, based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

Iran rejects the allegations, arguing that as a committed signatory to the Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.

April 3, 2013 Posted by | Economics, Wars for Israel | , , , , , | Leave a comment

Iran Abandons Chinese Help, to Build World’s Highest Hydroelectric Plant Alone

By John Daly | OilPrice.com | April 1, 2013

Iran, pummeled by years of international sanctions, has had two energy goals.

First, to preserve its dwindling international hydrocarbon market share, increasingly battered by years of U.S. and UN sanctions designed to slow down and halt its civilian nuclear energy program, which Washington and Tel Aviv have long insisted masks a covert program to develop a nuclear weapons program.

The second, much less reported in the foreign press, is to diversify its indigenous energy infrastructure, so as to preserve its hydrocarbon assets for the long term.

In pursuit of the latter goal, Iran is ramping up its hydroelectric program.

Iran currently has 23 operational hydropower plants, with a combined electricity generating capacity of 8.2 gigawatts, 14 percent of the nation’s total generating capacity of 58.5 gigawatts. A further 4.8 gigawatts of capacity is under construction, with 12.7 gigawatts of hydro capacity either undergoing feasibility study or in the early design stages.

The centerpiece of Iran’s hydroelectric ambitions is the $1.5 billion Bakhtiari Dam and Hydroelectric Power Plant in southwest Iran across the Bakhtiari River in the Zargos mountains in Iran’s western Lurestan province, with a capacity of about 169 billion cubic feet of water.

Due to open in 2014, the Bakhtiari Dam HPP will be the tallest dam in the world at 1,033 feet, surpassing China’s 1,000 foot Jinping-I Hydropower Station. The Bakhtiari HPP will be a double-arch concrete dam, creating a reservoir with an area of 5,900 hectares, with six 250 megawatt turbines providing a generating capacity of 1.5 gigawatts.

Feasibility studies for the Bakhtiari Dam HPP began in 1996, but ongoing problems saw a design team comprising Iranian and Swiss consultancies appointed in May 2005. The most notable delay was caused by the 2002 liquidation of the German contractor originally appointed to build the scheme. Tightening international sanctions made Tehran’s efforts to secure international financing more and more strained.

Enter the Chinese, with Sinohydro and Iran’s Faban taking over the project in 2007, with Chinese banks to provide the estimated $2 billion financing. Two years ago a Tehran-based consulting engineer noted, “For the past year, with the financial sanctions, it has been difficult to purchase equipment for hydro projects here. Projects have been pretty much limited to using Chinese manufacturers or trying to make parts locally. This has slowed down a number of schemes, especially those that have had to change their equipment specifications midway through construction. Nonetheless, they are moving forward. Sanctions have just meant that projects won’t necessarily have the best equipment installed and may take longer and cost more.”

Iran Water & Power Resources Developer Co. is overseeing the Bakhtiari Dam HPP. Since being established in 1989, IWPCO has been responsible for the construction of all new hydropower plants in Iran.

Interestingly, IWPCO remains coy about who will manufacture the facility’s turbines. The IWPCO website states about the electrical generation power facilities, “type of generators,” only the cryptic comment, “being designed.”

Two years ago, China’s Sinohydro Corp, constructor of China’s massive Three Gorges HPP, signed a contract to construct the Bakhtiari Dam HPP, Iran’s the state-owned Assets Supervision and Administration Commission (SASAC) reported, with a projected timeline of five years to complete.

Well, something disrupted the deal, though neither side is saying, as last June Iran’s government decided to withdraw from the deal, which analysts believe may be linked to the dissatisfaction of Iran’s central bank with loan options issued by the Chinese.

Showing some admirable bravado, IWPCO’s Mohammad-Reza Rezazadeh stated that Iran is considered among the most advanced countries in dam construction and engineering.

So, will Iran’s indigenous industrial base be able to pull off the Bakhtiari Dam HPP without either Chinese expertise or funding? Given that China is currently Iran’s largest export market for oil exports, no doubt there will be some more “frank and candid” discussions, little if any of which will leak to the Western press.

John Daly is CEO of U.S.-Central Asia Biofuels Ltd


Ahmadinejad inaugurates world’s tallest dam project in Lorestan

Press TV – March 28, 2013

Iran’s President Mahmoud Ahmadinejad has inaugurated a major construction project to build the world’s tallest double-curved concrete arch dam in Iran’s western Lorestan Province.

In a Thursday ceremony in the city of Khorramabad, the president expressed gladness over launching the major project, which will be carried out entirely by Iranian experts and construction workers.

The 315-meter-tall (1,033 feet) dam has been designed to construct a hydroelectric power plant that will generate 1,500 megawatt electricity.

President Ahmadinejad described the Bakhtiari Dam project as a turning point in the path towards the development, progress and improvement of Lorestan Province.

The president added during the inauguration ceremony that the world’s tallest double-curved concrete dam is being built here by the “able hands and expertise of committed Iranian scientists and workforce.”

The dam will be built over Lorestan’s Bakhtiari River.

April 2, 2013 Posted by | Economics | , , , , , , | Leave a comment

UN adopts arms trade treaty

Al-Akhbar | April 2, 2013

The UN General Assembly on Tuesday overwhelmingly adopted the first-ever treaty to regulate the $80-billion-a-year conventional arms trade.

The assembly voted 154-3 for a resolution that will open the treaty for signature from June. Syria, North Korea and Iran – which had blocked the treaty last week – voted against it. Twenty-three nations abstained.

The first major arms accord since the 1996 Comprehensive Nuclear Test Ban Treaty would cover tanks, armored combat vehicles, large-caliber artillery systems, combat aircraft, attack helicopters, warships, missiles and missile launchers, as well as small arms and light arms.

It would aim to force countries to set up national controls on arms exports. States would also have to assess whether a weapon could be used for genocide, war crimes or by terrorists or organized crime before it is sold. The treaty will not control the domestic use of weapons in any country.

The vote capped a more than decade-long campaign by activists and some governments to regulate the global arms trade.

Every country is free to sign and ratify the treaty, which will take effect after the 50th ratification from among the 193 UN member states, which could take up to two years.

(AFP, AP, Al-Akhbar)

MercoPress:

23 countries, including China, Russia, Cuba, Venezuela, Bolivia, Nicaragua and India abstained.

RT:

Russia and China – which both abstained during Tuesday’s vote – said that the vague criteria defined in the document may lead it to being manipulated for political ends, with various hostile countries defined as “human-rights abusers”. Russia also wanted the document to ban the supply of arms to non-state actors, such as rebels in the recent Arab uprisings.

India, another country that refused to endorse the treaty, and a major importer of arms, claimed the treaty gave excessive leverage to exporting states, who would be allowed to unilaterally break contracts for supposed ethical violations.

April 2, 2013 Posted by | Aletho News | , , , , , , | Leave a comment

Сhina considers investing $40 billion in US shale oil

RT | March 07, 2013

China National Petroleum Corporation, the country’s state-run oil major, is looking for its first stake in the US, as the three largest Chinese oil companies together plan to spend $40 billion to access US crude riches.

The announcement came on Wednesday from Jiang Jiemin, the chairman of china’s biggest oil company during the National People’s Congress in Beijing, Bloomberg reports. “We are currently studying [investing in US oil], ” Jiang Jiemin said.

Last month CNPC’s domestic competitor China Petrochemical Corporation agreed to buy a stake in an Oklahoma oil field from Chesapeake Energy for $1.02 billion.

A trend is unfolding for Chinese oil companies to use government loans to buy stakes in the US energy fields.

“Stake participation by Chinese companies in US oil fields would be welcomed,” a London-based analyst for Global Energy & Natural Resources at Eurasia Group, Will Pearson told Bloomberg. “Full buyouts will continue to be scrutinized and opposed.”

China already owns many entire oil and gas fields across Canada and Latin America, Africa and Australia. However the US is not rushing to sell off their fields, especially in the regions where military or other technology can be accessed for fear of intellectual property theft, Pearson said. In September 2012 President Obama barred a Chinese-owned company from building wind farms near a US Navy base in Oregon as a national security risk.

“The Chinese want to gain experience in shale gas, oil sands and deep water so they can redeploy the best US practices and technologies” back in China says Mirae Asset Securities Ltd. analyst Gordon Kwan.

China has already invested a record $1.52 billion purchasing stakes in oil and natural gas fields in the US this year, Bloomberg reports. China National Petroleum alone plans to double overseas production to 200 million tonnes a year by 2015.

March 8, 2013 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , | Leave a comment

On Paper, China Looks Very Good

By David Macaray | Dissident Voice | February 4th, 2013

Without much fanfare, and without many people even aware of it, in 2009, China has overtaken the U.S. as the world’s leading papermaker. Moreover, they did it in much the same way that they became the world’s premiere manufacturing beast: with innovative engineering, a smart game plan, a vast reservoir of cheap labor, and massive government subsidies.

As for reaching the top of the papermaking ladder, it’s the innovative engineering aspect that’s mind-boggling. China has managed to develop a genetically altered hardwood eucalyptus tree (which begins in the lab as a tissue sample inside a petri dish) that requires only four to six years to reach full height. That’s approximately one-tenth the time it takes “natural” trees in North America (which are abundant) to reach maturity. Eucalyptus is a favored furnish in papermaking because of its soft fiber.

Each year Chinese labs clone 190 million of these “test-tube” eucalyptus sprigs, which are planted on 790,000 acres spread over several Chinese provinces. Wending Huang, Asia Pulp & Paper’s chief forester in China, calls these bad boys “Yao Mings” (referring to a famous and very tall Chinese basketball player). Wisconsin is the leading papermaking state in the U.S. Maine is second. China can now match the yearly output of Wisconsin in just three weeks.

But genetically engineered trees aren’t the whole story. In addition to new woodlands, China has established itself as the world’s leading recycler of paper. Indeed, its recycling, de-inking, re-pulping operation is staggering. China buys about 54 billion pounds a year of scrap paper and cardboard from all over the world, and uses this recycled material to produce about two-thirds of its own paper and cardboard.

As for its own paper production, according to the McClatchy News Service, China has 20 mega-sized paper mills spread across the country, and the automated machines in these state-of-the-art mills are capable of producing a mile of glossy publishing-grade paper per minute. A mile a minute. That’s 5,280 feet per minute (fpm) of a glossy, high-quality base sheet. That’s amazing.

Not to give away any trade secrets, but Machine #1 at Kimberly-Clark’s Fullerton, California, paper mill produces a 172-inch wide sheet, at 4,600 fpm. That’s a pretty good operating speed for a less-than-new machine that runs 24 hours a day, 360 days a year. But this wadding is used exclusively for Kleenex and bath tissue, and doesn’t approach the quality of “publishing-grade” paper. A high-quality, glossy base sheet is a whole other deal.

It should also be noted that China still imports the overwhelming majority of its raw timber and processed (chemically treated) pulp. It gets its timber from all over the world (e.g., Indonesia, Russia, Vietnam, Brazil). In 2011 alone, it imported 14.5 million tons of it (29 billion pounds), l.6 million tons of which came from the U.S., where sawmills, logging and pulp operations have closed down, leaving timber businesses looking for new customers.

While environmental groups have strongly objected to China’s aggressive demand for wood pulp, claiming that it’s destroying the world’s forests, American companies and Wisconsin politicians have their own reasons to complain. They accuse the Chinese government of subsidizing the country’s paper mills and “dumping” unfairly priced (too cheap to compete with) paper on the American market. Japan was accused of the same practice with its cars.

According to McClatchey, “the Washington-based Economic Policy Institute estimates the Chinese government doled out at least $33 billion in subsidies to its paper industry from 2002 to 2009—the period that coincides with its stunning growth. That’s more than $4 billion a year, a number that is growing.”

So we have U.S. paper mills being squeezed not only by foreign competitors but by foreign governments subsidizing those competitors. It must be nice having your own government as partner and benefactor. One of the obvious advantages is that the government can print all the money it wants. That can be very helpful.

The third complaint—along with environmental concerns and “dumping”—is reserved for labor unions. They blame the unions for wanting decent wages and benefits. Attacking working people, those at the very bottom, should come as no surprise. It’s Newton’s First Law of Fecal Gravitation on an Inclined Plane (Shit rolls downhill).

~

David Macaray, a Los Angeles playwright and author (It’s Never Been Easy: Essays on Modern Labor), was a former union rep. He can be reached at: dmacaray@earthlink.net.

February 4, 2013 Posted by | Economics, Mainstream Media, Warmongering | , , , , , , | Leave a comment

Toothless sanctions? Iranian oil trade booming, China top buyer

RT | January 31, 2013

Iran has quickly found ways to circumvent the EU sanctions imposed on its oil trade in July. After dipping sharply in summer of 2012, Iranian crude oil exports rose again by the end of the year.

­So far, Iran’s December crude oil sales were the highest recorded since the sanctions were first imposed. Iran exported 1.4 million barrels per day (bpd) in December, compared to less than 900,000 bpd in September. Pre-sanctions oil exports stood at 2.2 million bpd in late 2011.

EU sanctions, introduced in January 2012 and put into effect in July, aimed to curb Iran’s ambitious nuclear program, which Tehran has insisted is only for peaceful purposes. The Iranian economy is heavily dependent on oil sales – the cuts in production lead to billions of dollars in lost revenue and a plunge in the value of the national currency.

Analysts believe that sales to Asia and the expansion of Iran’s tanker fleet helped the Islamic Republic circumvent the sanctions. In countries like China, India and Japan, Iranian oil constitutes more than 10 percent of the total crude supply – and demand from Asia is only growing.

“China is saying let’s up the numbers because no-one is doing anything about it and it looks like Obama has made a political decision not to go to war with Iran,” a senior source at a large independent trading house told Reuters.

Iran is also improving its delivery channels, despite the numerous bans and restrictions imposed by the international community.

“Iran bought a number of tankers from China and can now do more deliveries. It’s taken some pressure off Iran and facilitated tanker traffic and we are seeing higher exports to China,” analyst Salar Moradi at oil and gas consulting firm FGE told Reuters.

Meanwhile, a fresh round of US sanctions looms for Iran. Starting on February 6, US law will prevent the Islamic republic from repatriating earnings from its oil export trade. The ban is in addition to the already-existing restrictions, including the country’s removal from the SWIFT global financial service and an indefinite international asset freeze.

The new sanctions are expected to reduce export volumes to around 1 million barrels per day, the International Energy Agency predicted. However, analysts believe that further sanctions will not stop Iran from selling oil or pursuing its nuclear goals.

“What we have seen is that when Iran is pushed to a do or die situation, they have looked for creative solutions to get around sanctions,” oil and gas analyst Elena McGovern of Business Monitor International told Reuters. “The system will always find a way to cope.”

The international community has been failing to engage in constructive dialogue with Iran on its nuclear program. The so-called ‘sixtet’ of ‘5+1’ states – Britain, China, France, Russia, the US and Germany – met three times last year with little to no results. The next round of talks has been stalled until a venue for the meeting is agreed upon.

“Some of our partners in the six powers and the Iranian side cannot come to an agreement about where to meet, behaving like little children,” Russian Foreign Minister Sergey Lavrov said. He stressed that Russian mediators “are willing to meet at any location.”

While the West has demanded that Iran abandon its nuclear aspirations, Iran refuses to back down: Tehran has seized every opportunity to advance its nuclear capabilities. On Thursday, Iranian officials informed the UN nuclear agency of its plan to use more modern centrifuges at the Natanz uranium enrichment plant.

January 31, 2013 Posted by | Aletho News | , , , , , , | Leave a comment

China defying sanctions imposed on Iran

By Shabbir Kazmi | January 26, 2013

The recently released data shows Iran’s crude oil exports to China soared to the second highest level in December 2012, despite US-led sanctions against the Islamic Republic’s energy sector.

According to a Reuters report China imported nearly 593,390 barrels per day (bpd) of crude from Iran in December last year, up 3.6 per cent from the preceding year and up 39 per cent from November. For the full year 2012, the highest level of China’s crude imports from Iran stood at 633,000 bpd.

Industry officials in China attributed the enhancement in Iran’s crude oil exports to improvement in shipment. The problems that used to cause delays have been overcome recently. The period of delay has become shorter and overall, less frequent.

Iran is currently China’s third largest supplier of crude, providing Beijing with roughly 12 percent of its total annual oil consumption.

At the beginning of 2012, the United States and the European Union had imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

On October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against Iran.

Iran terms these impositions illegal and insists that US-engineered sanctions were imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

According to another news report China will soon start importing polyethylene made in Iran, which became possible after the Islamic Republic partially lifted a ban on the export of petrochemicals late last year.

Lately, China-based market sources said that an estimated 100,000-150,000 metric tons of high density polyethylene (HDPE) and low density polyethylene (LDPE) from Iran is expected to arrive in China within a month aboard five vessels. The sources added that the Iranian tanker Touska will shortly discharge HDPE and LDPE at Shanghai port.

On November 6, 2012, Iranian Deputy Oil Minister Abdolhossein Bayat announced that the Oil Ministry had lifted the ban on the export of seven petrochemicals; benzene, styrene monomer, caustic soda, linear alkyl benzene (LAB), melamine crystal, premature ventricular contraction (PVC), and polyethylene.

January 27, 2013 Posted by | Economics | , , , , , , | Leave a comment

CNOOC, Chevron sign production sharing contracts

Xinhua | 2013-01-17

BEIJING – China National Offshore Oil Corporation (CNOOC) has signed two production sharing contracts with Chevron China Energy Company for two blocks in the South China Sea, a statement said.

CNOOC Limited, a subsidiary of CNOOC — the country’s largest offshore oil and gas producer, said in the online statement late Wednesday that the two blocks, Block 15/10 and Block 15/28, are located in the Pearl River Mouth Basin in the east part of the South China Sea.

According to the terms of the contracts, Chevron will conduct 3D seismic data surveys in the two blocks during the exploration period, in which all expenditures incurred will be borne by Chevron.

CNOOC is allowed to take up to 51 percent of interest in any commercial discoveries in the blocks, the statement said.

“We are very pleased to become a partner with Chevron again and hope this project achieves commercial discoveries soon to create economic returns for both companies,” said Zhu Weilin, executive vice president of CNOOC Limited.

January 17, 2013 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , , , | Leave a comment

Moscow, Beijing reconnect as reset with US fizzles

By Robert Bridge | RT | January 9, 2013

Russia and China, which share many of the same international concerns, are looking to fortify their strategic partnership.

­At a time when the neighboring countries are beginning to feel the heat of the US military, it seems only natural that Moscow and Beijing are beginning to plant the seeds of a long-term strategic relationship.

Xi Jinping, the secretary-general of the Chinese Communist Party, underlined his country’s commitment to a Russian partnership when he noted that he and President Vladimir Putin “came to the unanimous conclusion” that a “comprehensive strategic partnership” between Moscow and Beijing remains the “top priority of their foreign policy.”

The comments were made on Tuesday during a visit to Beijing by Russian Security Council Secretary Nikolay Patrushev, who is participating in the eighth round of Russian-Chinese consultations on strategic security.

Xi Jingping, 59, who was sworn as the highest-ranking Communist official in November, echoed the sentiments of the Russian president, who noted at his recent Q&A session with international media that Russo-Chinese relations “have become one of the most important factors in the (realm of) international affairs.”

Given the geopolitical realities of the region, it should come as no surprise that Moscow and Beijing are looking to forge a strategic partnership.

Whereas China, traditionally an isolationist country that shuns bilateral alliances, rarely reveals its political hand, Russia made a leap of faith when it attempted to forge a so-called reset in relations with Washington. Today, the reset is in shambles, while many in Moscow accuse Washington of allowing the partnership to deteriorate.

Indeed, much of the blame for the Russia-US fallout is due to Washington’s plans to place a missile defense shield in Eastern Europe, just miles from the Russian border. NATO, originally declaring its intention to cooperate with Russia on the project, remains intransigent, while even refusing to provide Moscow with a legal guarantee that the system will never be aimed at Russian territory.

Moscow rightly warned its Western partners that without Russia’s participation in the system the strategic balance would be upset and there would be another arms race. Still, US and NATO officials have been reluctant to bring Russia on board, and this refusal has played havoc with Moscow’s and Washington’s efforts to nurture a reset between the former Cold War enemies.

In fact, given the current stalemate, the reset itself seems to have been merely a ploy to win Russia’s trust at the same time that a threatening military technology was being introduced courtesy of the Obama administration.

Meanwhile, China, which recently celebrated the launch of its first aircraft carrier (the US Navy already has six carriers assigned to the Pacific), is witnessing a growing US naval presence in the Pacific.

The US military brass announced in June that up to 60 per cent of the Navy’s fleet will be deployed to the Pacific by 2020.

At the same time, Moscow and Beijing hold similar positions on a variety of other international issues, including the situation in Syria, where militants are attempting to force President Bashar Assad from power. Russian and Chinese diplomats have called for a general ceasefire followed by negotiations, whereas the United States has thrown its weight behind the opposition.

“Moscow and Beijing both hold similar positions on the global hotspots, including in Syria, North Korea, Afghanistan and Iran,” Evgeny Bazhanov, president of the Diplomatic Academy of Russia’s Foreign Ministry, told RT in an earlier interview. “They are also both deeply suspicious of the US missile defense system.”

Finally, the China-Russia relationship is motivated by other factors aside from their increasing wariness of American geopolitical intentions.

For example, considering China’s exploding economy, Beijing requires a reliable flow of oil and gas. Russia, meanwhile, welcomes the opportunity to diversify its ample supply of natural resources.

Interstate consultations on strategic issues between Russia and China were launched in 2005.

January 10, 2013 Posted by | Progressive Hypocrite | , , | Leave a comment

Afghanistan: U.S. out, China surges in

By Barry Lando | September 27, 2012

There’s got to be some symbolism—if not irony–in the fact that just as the last of the 33,000 troops surged by Obama two years ago supposedly to pacify Afghanistan pulled out, the highest ranking Chinese official to visit Afghanistan in almost half a century pulled in—arriving in Kabul for a secret round of meetings with top Afghan officials.

Question: How will China deal with the country that proved such an expensive and bloody disaster for both the U.S., its NATO allies–and the U.S.S.R before them?

In a brief visit, unreported until he had left Kabul,  Zhou Younkang, China’s chief of domestic security, met with Afghani leaders, including President Hamid Karzai. They talked about drugs, international crime, terrorism, and developing Afghanistan’s huge natural resources—just as visiting Americans have done for years.

The result, a cluster of agreements, among them an announcement that 300 Afghan police officers will be sent to China for training over the next four years.

Which is another irony of sorts—coming at the same time as news that the U.S. and its allies have been obliged to scale back joint operations with the Afghan military and police, because they can no longer trust the men they’ve trained. American troops in the field with their Afghan allies now keep weapons ready and wear body armor even when they’re eating goat meat and yoghurt.

So far this year 51 American and NATO troops have been gunned down by Afghan military or police:  a startling 20% of all NATO casualties this year.

The off-the-wall video from California ridiculing the prophet Mohammed has only further fueled anti-American hatred.

As the New York Times quoted one 20 year old Afghan soldier, NATO casualties could even be higher.

“We would have killed many of them already,” he said, “but our commanders are cowards and don’t let us.”

There are still some 68,000 American troops based in Afghanistan, but the plans are for them all to be out by the end of 2014. Which means that China will be confronting serious security problems of its own in Afghanistan. They already have direct investments of more than $200 million in copper mining and oil exploration, and have promised to build a major railroad east to Pakistan or north to Turkestan.

But they could pour in billions more if Afghanistan were a secure, well-ordered country, free from the Taliban, free from kleptocratic war lords and venal government bureaucrats, patrolled by well-trained Afghan soldiers and police:  in other words, exactly the kind of country the U.S. would like to have left behind—and didn’t.

Instead, of course, despite America’s huge sacrifice in men and treasure –more than half a trillion dollars since 2001–things haven’t worked out that way.  [For a dramatic, running count of the enormous hemorrhage that the wars in Iraq and Afghanistan still represent to the U.S. economy check out costofwar.com.]

Meanwhile, corruption is rampant, and it’s by no means certain that Afghanistan has—or ever will have–a national army and police force worthy of the name.

The U.S. Inspector General for Iraq Reconstruction, peered into the Pentagon’ s 1.1 billion dollars fuel program to supply the Afghan Army, and concluded that there was no way to be ascertain how much if any of that fuel is really being used by Afghan security forces for their missions. There was also no way to know how much was stolen, lost or diverted to the Taliban and other insurgent groups. Almost half a billion dollars worth of receipts detailing with fuel payments over the past four years have been shredded.

With the Americans heading for the exits, the challenge facing the Chinese—and anyone else, like India–interested in investing in the country–is how to navigate this imbroglio.

Indeed, the Chinese have apparently already run into problems in Afghanistan. Work at the Mes Aynak copper mine in Logar Province is already behind schedule, and no work has begun on the promised Chinese-built railroad yet. Various impediments have turned up, like recalcitrant bureaucrats, tensions provoked by the need to displace local populations, the discovery of Buddhist ruins, as well as ramshackle Soviet-era mines that first had to be cleared.

And then there’s the rival, rapacious warlords, who see the country’s resources as a way of fueling their own ambitions—like General Abdul Rashid Dotsum, who the government has accused of attempting to extort illegal payoffs from the Chinese oil company.

However, in their dealings throughout the developing world, from despots to democracies, the Chinese have shown themselves adept at navigating such quagmires. There’s no talk from Beijing of Chinese “exceptionalism”. They’ve been taking on the world as it is—not as someone in a Chinese think tank would want to remake it.

They’ve generally turned a blind eye to considerations of human rights, opted to pay off or work with the powers that be, and used offers of huge new infrastructure projects as bait, steadily increasing their share of the globe’s resources.

Many potential investors still shy away from Afghanistan. They have no idea what lies on the other side of the political abyss after 2014 when the U.S. completes its withdrawal.

China is also wary, but they’re also seriously planning their Afghan strategy for the post-American future.

As Wang Lian, a professor with the School of International Studies at the Paking University in Beijing, put it,  ”Almost every great power in history, when they were rising, was deeply involved in Afghanistan, and China will not be an exception.”

Unmentioned, of course, was what an unmitigated disaster that involvement turned out to be for the USSR, the US–and Afghanistan.

We’ll see how China fares.

September 28, 2012 Posted by | Corruption, Economics | , , , , , | Leave a comment

$200 million loan from China due to arrive in National Bank of Egypt

Al-Masry Al-Youm  03/09/2012

The National Bank of Egypt said that the US$200 million loan recently granted by the China Development Bank will arrive in the country within days.

The interest rate due on the loan is up to 3.75 percent above Libor rates, which is the central lending price of British banks for a pay period of eight years, including a three-year grace period.

Sharif Elwi, vice-president of the National Bank, said that the loan marks the beginning of Egyptian cooperation with Asian markets in light of worsening economic conditions in Europe.

China has allocated $20 billion to finance projects in Africa, and the National Bank began loan talks with the China Development Bank five months ago, Elwi explained. He denied that the government had pressured the National Bank to broker the deal due to Egypt’s declining international credit rating.

National Bank leaders plan to visit Singapore, Hong Kong, China and Malaysia this October to present investment opportunities in Egypt to potential backers there.

September 3, 2012 Posted by | Economics | , , , , , , | Leave a comment