7/31/2012

Libya Jew returns to UK post-Benghazi jailing



Πηγή The Jerousalem Post
By GIL SHEFLER
July 31 2012

Businessman Raphael Luzon held, interrogated by ‘preventive security’ for four days, doesn’t advise any Jew to go to Libya.

Raphael Luzon, a former Libyan Jew, returned to the UK safely on Sunday after security forces in Benghazi imprisoned and interrogated him for several days.

Luzon said his ordeal began in Benghazi on July 22 when “suddenly a friend sent me a text warning me to be careful that security forces are looking for me,” he recalled. “I immediately called the Italian consul who came to my hotel, but when I went to the lobby to meet him he was surrounded by 12 to 15 armed men.

They didn’t let the consul speak, they put me in the car and took me outside Benghazi.”

Luzon, who said he was in the country for business, was kept behind bars at a military camp outside the Mediterranean city without being told why.

“I felt my life was in danger for the first 24 hours because no one knew where I was or what had happened to me,” Luzon said. “In the morning high officials came. One of them, a general shouted at my captors saying they should have brought me food and water.”

The Libyan Jew said men he identified as belonging to the muchabarat, or the preventive security, interrogated him daily.

Meanwhile, news that a “Jewish leader was abducted” appeared in the Libyan press.

After four days in prison, Luzon was freed and kept under house arrest at a friend’s residence in Benghazi.

Still, he was not allowed to leave the country. A citizen of Britain and Italy, Luzon said both countries intervened on his behalf. He credited British MP Robert Halfon, whose father was a Libyan Jew, and Italian consul Guido Bessanti, for securing his release.

Asked why he had been arrested, Luzon said he was still not sure.

“I don’t know why, but privately I’ve been told that there is a big fight between the groups and everybody wanted to be the one that arrested and released me,” he said.

Luzon and other members of the former Jewish community of Libya, who were forced to leave the country in the 1960s and 1970s, have for years been lobbying for the return of considerable private and communal Jewish assets that were confiscated by the regime of slain dictator Muammar Gaddafi. After Gaddafi’s fall in 2011, there was hope the country might open up and address the grievances of its exiled Jews, but so far little progress has been made.

Last year David Gerbi, another Libyan-born Jew, received death threats after he tried to reconsecrate a synagogue in Tripoli, forcing him to flee the country.

Luzon, who makes a point of distancing himself from Gerbi, has been negotiating with Libyan officials over the rights of Jews to little avail.

Elio Raccah, a member of the Jewish Libyan community in exile based in Italy, the country’s former colonial ruler, said he had few expectations that he would be welcome back to Libya in the near future.

“What really counts is popular sentiment, I am convinced nothing has really changed over there as far as the Jews are concerned,” he wrote in an email to the Post. “[The Libyans believe Jews are] undesired greedy ogres to be ridden of in Palestine and, of course, in Libya.”

The question of Jewish rights remains mute in Libya, where a multitude of rival groups and clans are fighting for power in the power vacuum created by Gaddafi’s ousting. Last month, when elections were held for the first time, the National Forces Alliance, a non-Islamist, liberal party, emerged triumphant, bucking the Islamist trend in Arab Spring countries like Tunisia and Egypt. It remains to be seen, however, whether Western-educated Mahmoud Jibril who leads the party will be able to reestablish the rule of law in the oil-rich nation.

Despite his recent experience, Luzon said he had not given up fighting for the rights of Libyan Jews.

“It will take a long, long time if they will allow some Jewish assets to be returned,” he said, “but I think the country would allow Jews to return for holiday or business in a few years.”

“They were under a regime for decades and they do not distinguish between a Jew and a Jewish Zionist, religious or secular,” Luzon added.

Meanwhile, he added, “at the moment I do not advise any Jew to go to Libya.”



Geithner, Schaeuble Hail Euro Plan As Greece Gets No Word

U.S. Treasury Secretary Timothy Geithner, right, talks to German Finance Minister Wolfgang Schaeuble on the German North Sea island of Sylt, northern Germany, on Monday. 

Πηγή: Bloomberg
By Rainer Buergin and Ian Katz
July 30 2012

U.S. Treasury Secretary Timothy F. Geithner and German Finance Minister Wolfgang Schaeuble backed a commitment by European leaders to do everything needed to defend the euro area while failing to mention its weakest link, Greece.

In a joint statement issued after they held talks on the German North Sea island of Sylt today, Geithner and Schaeuble “took note” of comments made last week by European leaders to “take whatever steps are necessary to safeguard financial stability” in the 17-nation currency area.

The two officials welcomed Ireland’s sale of bonds and Portugal’s “continued success in meeting program commitments” and discussed the “considerable efforts” made by Spain and Italy “to pursue far-reaching fiscal and structural reforms.” They didn’t refer to Greece, where international creditors are reviewing the government’s progress.

The talks signaled U.S. endorsement for European Central Bank President Mario Draghi as he seeks a game changer in the battle against Europe’s sovereign-debt crisis almost three years after it surfaced in Greece. Geithner is due to conclude his one-day trip to Germany later today by meeting with Draghi in Frankfurt. An ECB spokeswoman declined to comment when asked whether the ECB would release a statement after the Draghi meeting.

‘Fundamentally Solvent’

Greece’s absence from the Treasury’s “very carefully worded” statement reflects the view that the other countries mentioned are “fundamentally solvent,” while Greece is “a fundamentally insolvent economy,” Domenico Lombardi, a senior fellow at theBrookings Institution in Washington, said in an interview.

“The main purpose of U.S. strategy at this moment is pushing the Europeans -- that is, Germany -- toward supporting a bolder and more aggressive stance by the ECB, which is really believed to be key at this juncture to avoid a meltdown of the euro,” Lombardi said. Geithner is trying to reach “ a consensus among key euro area countries” to support a bolder ECB approach.

Spanish bonds extended a rally, and European stocks rose to the highest level since April amid speculation that Draghi will succeed in building consensus among governments and central bankers for a plan to ease borrowing costs in Spain and Italy before ECB policy makers convene on Aug. 2. The euro fell against the dollar for the first time in four days.

Draghi’s Proposal

Draghi’s proposal involves Europe’s rescue fund buying government bonds on the primary market, buttressed by ECB purchases on the secondary market to ensure transmission of its record-low interest rates, two central bank officials said July 27 on condition of anonymity. Further ECB rate cuts and long- term loans to banks are also up for discussion, one of the officials said.

Leaders in Berlin, Paris and Rome have already tacitly endorsed Draghi’s approach, echoing his language in saying they will do what’s needed to protect the euro. Draghi must now deliver or face a renewed selloff on bond markets where Spanish and Italian yields reached euro-era records this month, fueling speculation the monetary union could fall apart.

“We have reached a decisive point,” Jean-Claude Juncker, who heads the group of euro-area finance ministers, told Germany’s Sueddeutsche Zeitung in an interview. “The world is talking about whether there will still be a euro zone in the next few months. We have to make abundantly clear with all available resources that we’re completely determined to guarantee the financial stability of the currency.”

Temporary Fund

Juncker confirmed that the temporary bailout fund, the European Financial Stability Facility, is working with the ECB on a plan to reduce borrowing costs, adding “we have no time to lose,” the newspaper reported.

In Athens, representatives of Greece’s international creditors -- the ECB, the European Commission and the International Monetary Fund -- may extend their visit until the government has completed work on a two-year, 11.5 billion-euro ($14 billion) budget plan, a Greek Finance Ministry official said yesterday.

Prime Minister Antonis Samaras and his coalition partners, Evangelos Venizelos of Pasok and Fotis Kouvelis of Democratic Left, are meeting again today to try and determine the savings required to receive the funds pledged under Greece’s two rescue packages totaling 240 billion euros.
Euro Drops

The euro fell 0.6 percent to $1.2258 at 2:40 p.m. in New York. The shared currency gained 1.4 percent in the two days after Draghi’s July 26 pledge to do whatever is necessary, ending last week at $1.2322.

Spain’s bond market staged its biggest rally in seven months, sending the 10-year yield down to 6.74 percent from a euro-era record of 7.75 percent reached on July 25. The rally continued today, with Spain’s 10-year rate dropping to as low as 6.57 percent and Italy’s to 5.88 percent.

While the ECB’s willingness to act is necessary to buy time, the central bank can’t solve the debt crisis alone, Moody’s Investors Service said today.

German Chancellor Angela Merkel’s coalition partners voiced concern about renewed ECB bond purchases, underscoring the domestic difficulties she faces to win support for new measures.

“These conflicting remarks illustrate the diverging views that have dogged the euro-area authorities’ policy development and significantly contributed to the depth of the crisis,” Moody’s said in its Credit Outlook today.

Bundesbank Hurdle

The biggest hurdle may be the Bundesbank, which last week reiterated its opposition to ECB bond buying, saying it blurs the line between monetary and fiscal policy. The ECB shelved its bond-purchase program in March.

Draghi has also scheduled talks with Bundesbank President Jens Weidmann, the two central bank officials said on July 27. A Bundesbank spokesman declined to say yesterday whether a discussion has taken place. An ECB spokeswoman reiterated that it’s not unusual for Draghi to speak with council members and declined to comment further.

Europe is “burning because of deep concerns about political will” in the region to resolve the crisis, Geithner said in a July 23 interview on the “Charlie Rose” show broadcast on PBS and Bloomberg Television.

In their statement today, Geithner and Schaeuble emphasized “the need for policy makers to adopt and implement all reform steps required to deal with the financial crisis and crisis of confidence,” the U.S. Treasury and Germany’s Finance Ministry said. “Both expressed confidence in euro-area member states’ efforts to reform and move towards greater integration.”

The U.S. and Germany “will continue to cooperate closely with their partners when advancing the policy agenda in autumn to further stabilize global and European economies.”



Greece: the Washington v Berlin poker game returns…to Athens’ advantage.

US Treasury Secretary Geithner may yet wind up being Greece’s saviour.

Πηγή: The Slog
July 30 2012

A few airy vapours emerged in the way of rationales for US Federal Treasury Secretary Tim Geithner’s session with German finance minister Wolfgang Schäuble today. The two men ‘expressed confidence in euro-area member states’ efforts to reform and move towards greater integration’, ‘welcomed the Irish example of placing successfully longer-term bonds last week and Portugal’s continued success in meeting program commitments andzzzzzzzzzzzzzzz…..’

Bazooka Geithner was scheduled to travel on to Frankfurt Monday afternoon for a session with European Central Bank President Mario Draghi, and no doubt at that time they will talk about Borussia Dortmund’s women’s soccer friendly against Inter-Milan’s mixed-sex 2nd XI next Thursday. It promises to be a storming game, but most people watching ClubMed developments (especially those in Athens) could be forgiven for suggesting that Greece’s future location as a sphere of vital influence was the main reason Mr Geithner was talking to two of the most powerful financial players in Europe.

The eurozone has been a pimple on the backside of global money for two years now, but while the buttock-blemish just keeps on getting bigger, nothing seems to bring it to a head. My theory is that the problem is now so big, it has expanded far beyond the fiscal arse, and is about to launch an assault on the head: but whether I’m right or wrong, there’ve been so many jigsaw bits, clues and signs falling into place of late, you’d have to be Mr Magoo in a tank not to notice them.

What’s going on here is a high-stakes poker game between Washington and Berlin. And once again, we are talking Greek default into the welcoming arms (in every sense) of America v Merkel’s FiskalUnion vision wherein Greece stays in the eurotent…along with its strategic, mineral, and energy importance to Brussels.

Here are some examples of what I mean.

“One thing that’s started happening among eurobankers is debt syndication,” a Madrid based debt expert told me late last week. “The situation here has gone beyond critical…Spain is a cert for full-on bailout. And Greece is running to fall backwards. So senior bank executives are looking to spread risk: they’re happy to lend the same target sum, but to five clients not one. And preferably across three EU States. I asked two guys last weekend [21st/27th July] what they most feared right now, and it was Germany throwing the towel in. So in that outlook which, you know, I think is not unreasonable, you can see why the target setters have said ‘same goals but more borrowers’.”

The anti-Greek feeling among Bankfurters has been growing of late, I am certain. This tendency is also, we now see, shown to be far closer to the German public pulse than that of the Merkel inner circle. Early today Bild splashed the results of a poll by the Emnid research institute. They showed that over 70% of respondents wanted Greece to leave the eurozone if it couldn’t stick to its repayments schedule; while a technical majority of 51% (the first time I’ve seen one) felt Germany would be better off without the euro. The poll is significant, in that it shows any gentle shoving of Athens towards the Exit Lounge would give the MerkeSchäuble Coalition Government a clear electoral advantage next year. Equally important, it showed that Fritz in the street thinks doing nothing Brussels-style is not an option.

The one pair of cold eyes into which Tim Geithner hasn’t stared yet belong to Angela Merkel. Being a born geopolitician, she will still be mulling over what the greatest risk might be: Germany taking on board a Hindenburg of debt, or Berlin-am-Brussels losing the resources and power to have the deciding say in the Middle East….via Greece.

Yesterday I posted about Geithner sending special envoy Collyns to lick the Greeks all over, and reassure them of just how valued they will be as and when a return to the Drachma takes place. I’m confident that German intelligence is aware of the content of their discussion; and I’m told that this is reflected in reports coming back from Athens today about the Greek government finally resolving to draw a line in the sand about Troika demands.

What I suspect might be happening now is that the usual suspects among Greece’s elite of troughers are balancing the horrors of losing the Brussels gravy train against the potential of joining an American version with more First Class carriages.

What’s more, I’m reasonably sure that the Troika is in possession of Berlin’s knowledge about the American offer. This from Athens News yesterday (my italics):

‘…the atmosphere at the [Friday Coalition/Troika] dinner was “exceptionally good” and marked a change in the attitude so far of the representatives of Greece’s creditors….‘

A couple of hours ago (4pm BST Monday) Greek PM Antonis Samaras was due to hold talks with PASOK leader Evangelos Venizelos, and the minor Party Democratic Left’s leader Fotis Kouvelis. I’ve had wildly conflicting reports today as to who if anyone will object to what in the way of Troika demands. Kouvelis, however, is felt by many to oppose any more pension or salary cuts. And some sources think all three men will not budge on auctioning State assets. As this has been a consistent (and from their viewpoint, totally understandable) foot-dragging subject since the first Greek bailout, The Slog’s informants may well be right. However, Finance Minister Yannis Stournaras and Labor Minister Yiannis Vroutsismet met earlier today: Stournaras was the recipient of envoy Collyn’s alleged ‘total support’ message last week. So it’s very possible that the Greek side now feel they have more cards for when the next Troika session occurs.

Even the scheduling for that keeps changing. I was told last Saturday that it would be this evening, but now I understand it has been postponed. According to Athens News the story is that the Troika is digging in ‘until a package of measures is agreed’.

This is a very finely balanced diplomatic situation, but you have to take your hat off to Geithner this time: he seems to have learned the lesson of the EU Poland summit – viz, Yankee bombast doesn’t play well in Europe. Indeed, he is displaying considerably more craft and subtlety at the moment than Hillary Clinton over at State when it comes to Obamite Arab foreign policy. As everyone in the US tells me, love or hate the guy (to quote one trusted contact) “Tim Geithner is not just another money-f**king banker…he’s a cultured man who does see the higher game.”

Make of that what you will. The point is, it’s hard to see how the Federal Treasury Secretary can lose in this situation. If Germany embraces Greece as a preferable alternative to having the Pentagon crawling all over it, then Germany picks up the tab for whatever the eurozone downside turns out to be…and reassures the markets that Berlin is, after all, the final guarantor. This can only go down well on Wall Street. On the other hand, if Merkel goes with German public feeling (or is arm-locked into doing so) then Timmy can write in his memoirs how, in one all-or-nothing hand, he secured Greece as a US base for all time from which to exploit rare-earth minerals and exert fast-response influence on the Iran-Israel-Sunni Middle East farrago.

In conclusion, let me just add one thought that continues to intrigue me. The total Greek debt as of now is roughly $390bn. The US total debt is $16 trillion. For US bank collapses to start happening on the basis of a sum owed in the region of 0.7% of America’s national debt (collapses that could balloon US debt management costs enough to sink the entire country) strikes me a risk not worth considering for longer than 0.07 of a second.

This in turn leads me to ask three further questions. One, is Israel no longer deemed to be of value to the Obama Administration as an ally? Second – even more mind-concentrating – are the derivative multiple indices potentially accruing from eurozone meltdown so terrifying, the US would be happier ‘adopting’ a Greece outside the eurozone, rather than take the risk of a Greece inside triggering the nuclear reaction? And third, if that’s the case, what on Earth is Washington going to do about Spain and Italy?

Stay tuned.



For Greece there is an alternative to austerity – as Argentina proved

German chancellor Angela Merkel is seen on the front page of the Greek magazine Crash dressed as prisoner with handcuffs. 

Πηγή: The Guardian
By Dean Baker
July 30 2012

The IMF and Germany don't want Greece to know the truth – that a euro exit might lead to a stronger economy, not ruin.

It has been a bit over four months since the latest bailout of Greece was negotiated. 

This bailout featured a write-down of most privately held debt in exchange for further austerity measures. It is already clear that Greece will not meet its deficit targets from this bailout, the main reason being that cuts to the budget have led to a much steeper recession than official forecasters had predicted. 

The Greek government now expects the economy to shrink 7% over the course of the year. That compares to the decline of 4.7% that the IMF projected for Greece back in April.

This was hardly the first time that the IMF and other official forecasters had badly underestimated the severity of Greece's downturn. In April 2011, the IMF had predicted that Greece's economy would grow 1.1% in 2012, after shrinking just 3% in 2011. 

In fact, Greece's economy shrank by almost 7% in 2011. And, in April 2010, the IMF was projecting that Greece's economy would be on a slow and steady growth path in 2012 after shrinking by just 1.1% the prior year.

Clearly things are not panning out as the IMF and the rest of the troika – the European Central Bank and the European Union – had planned. Budget cuts and tax increases in the middle of a downturn are having exactly the effect predicted by the old economics textbooks: they are reducing demand, slowing growth and raising unemployment. 

Furthermore, since lower output means less tax revenue and higher unemployment means more payouts for unemployment benefits and other transfers, the austerity imposed on Greece is doing little to even bring down its deficits.

This is why Greece will almost certainly miss its deficit targets for this year. In principle, this is supposed to trigger a cutoff of funds from the EU. 

That would lead to a default by Greece and force Greece to leave the euro and bring back the drachma.

That sounds very scary for Greece, a situation implying a fully fledged financial crisis. Banks will have no money to give their depositors, at least until the government can get the new currency printed up and distributed around the country. 

Even in the best of circumstances this would probably take more than a week and quite likely take much longer. 

Running a modern economy on ad hoc credit and barter for even a week would not be pretty.

If the transition to the new currency drags on for three or four weeks, the hit on the economy would be far worse.

And even after the transition, there will be endless disputes to sort out concerning the rate at which debts and other obligations are transferred from euros to drachmas.

As bad as this situation sounds for Greece, however, the troika, propelled by its leading actor Germany, fears this outcome even more. 

The issue for Germany is that Greece may provide a good example for other heavily indebted countries, most importantly Spain and Italy.

The period of transition will cause enormous economic disruption and pain, but once the new currency is in place, Greece's economy can return to a healthy growth path. In the case of Argentina, another country that defaulted and broke the supposedly unbreakable tie of its currency with the dollar, the transition period was less than six months. 

It defaulted in December 2001 and was on a robust growth path by the summer of 2002. It had regained all the ground lost due to the financial crisis by the summer of 2003 and continued to have solid growth until the worldwide economic crisis in 2008.

There are reasons why Greece's economy can be expected to perform either better or worse than Argentina's did a decade ago. 

We will only know for sure if it actually does go the default route, but even if it took a year to get back on a healthy growth path, Greece is still likely to look quite good to Spain and Italy. Both countries could easily face a decade of recession or stagnation on the troika's path.

As long as no country takes the euro exit route, politicians can get away with telling their constituents that there is no alternative. 

They must accept the austerity prescribed by the troika no matter how painful it is. Once Greece leaves the euro, this is no longer a plausible claim. And if the Greek economy turns around and grows at a healthy pace, then the troika's path is likely to prove unacceptable to the people of Spain and Italy.

This is the situation that Germany must fear. However many times Greece misses its targets, the troika is likely to come back and move the goalposts again. 

They don't want anyone in the eurozone to recognise that there is an alternative to permanent austerity and they will make whatever concessions are necessary to ensure that neither Greece nor anyone else ever discovers the truth.



Cyprus: Overseas property sales hopes helped by Chinese


Πηγή: CPN
By By: Bejay Browne (Cyprus Mail)
July 29 2012

The Cyprus overseas property market is reported to be getting a boost from the Far East as interest from Chinese buyers looking to purchase top end luxury properties in Paphos is increasing.

The once booming Paphos property market, once dominated by British buyers, collapsed in 2009 as a result of both the worldwide recession and the title deeds scandal in which buyers who had paid in full for their properties were left years later without possession of ownership documents.

The collapse has had a serious knock on effect on the local economy which had long relied on tourism and property sales as an economic mainstay.

“There has been a 25 per cent increase in Paphos sales according to recent official statistics and part of this increase is due to the Chinese purchasers,” said George Leptos of the Paphos-based developers the Leptos Group and head of the Paphos Chamber of Commerce (EVE).

Billboards along the main roads of Paphos are now advertising properties for sale in Chinese while developers have been actively targeting the Chinese market for some time.

Their perseverance appears to have paid off.

“We have various offices in China and we regularly attend various property exhibitions. All of our sales in recent months have been to Chinese clients,” said Sophia Charalambous of Korantina Homes.

She said Chinese clients are keeping the company busy, and are choosing to purchase top end luxury properties.

“We have many Chinese clients, mostly business people and families. Most of our clients have a budget of around €1,000,000,” she said.

“The British market has almost dried up for us. We have the occasional Russian client but we are mainly working with the Chinese. Next week 12 prospective buyers are arriving and we will see how many make purchases.”

The property professional added that even though China was a ‘new’ market, it wasn’t a ‘phenomenon’ as such, as investors from China should be expected in Cyprus.

“China has a large population and has a rich economy. It’s doing better than a lot of other countries,” she said.

House sales in Paphos are just one example of the stronger economic links between Cyprus and China. The Chinese company, Far Eastern Phoenix, is eager to lease the old Larnaca airport from the government to turn it into an exhibition space. On Friday Communication and Works Minister Efthymios Flourentzou said an oral agreement had been reached over terms, but a written agreement was still needed. China was also one of the countries approached to provide a loan to the government before it was forced to go the EU for a bailout in June.

Charalambous said that most of the developers in Paphos are dealing with the Chinese market and that the definite upward trend in Paphos property sales was due to the Chinese.

George Leptos was equally optimistic.

“Generally there are good prospects regarding this market and it should be explored further,” he said.

The Leptos Group has participated in exhibitions, generated Chinese business contacts and undertaken product promotion in China.

Leptos said that the company’s Chinese clients are interested in ready or almost ready properties, of a value ranging from €300,000 to €800,000.

As non-European nationals, prospective Chinese buyers need to make a minimum property purchase of €300,000, and prove they are of an adequate financial status to stay in Cyprus.

“The Chinese as well all other non-European property buyers are entitled to apply for and receive a permanent residency permit for themselves and their family, providing that they fulfil certain pre-specified standard conditions,” said Leptos.

“Once the permit is obtained, they can reside in Cyprus for as long as they own the property. They become what I would call ‘permanent tourists’.”

While Chinese buyers are apparently boosting sales in a depressed market, Pavlos Loizou, board member of RICS Cyprus (the Royal Institution of Chartered Surveyors) said that the latest figures were far less impressive when put into context.

“Whilst it is correct to say that there has been an increase in property sales in Paphos since 2010, very few transactions actually occur every month and so when these figures are turned into percentages terms the increase appears greater than it actually is.”

While Loizou said he couldn’t specify if Chinese buyers were purchasing properties in Paphos, he noted that in March only 90 properties were sold in Paphos, 36 of them to foreign buyers. In April the figure dropped to 84, 36 of them to foreign purchasers. In May, sales reached 165, 82 of them to non Cypriots.

“Paphos was the first town to experience a fall in sales as well as the largest decrease in sales, but it is beginning to stabilise, whilst other towns are still falling. You could say that Paphos hit the bottom first.”

Paphos has been most affected by the property slump in Cyprus because it had a far greater reliance on foreign purchasers and now has the highest number of completed units which remain unsold.

The Title Deed fiascoBut the decline in sales was also due to the title deeds fiasco. Commonly in Cyprus, developers take out mortgages on land or property, the liability for which may then be placed on the purchaser of a property on that development, if the developer or landowner becomes bankrupt. It also meant title deeds were held by the bank who granted the mortgage.

After years of outcry by misled owners, in 2011 the government introduced a ‘specific performance law‘ which grants a contract of sale precedence over any pre-existing mortgage (providing that the buyer pays the mortgage lender the amount of the mortgaged debt attributable to the property they are purchasing).

Purchase a property with a Title Deed

Even so, buyers should still purchase a property with a title deed (and use the services of a competent & independent lawyer to check everything is OK and to draw up a watertight contract – and ensure the title is ‘clean’; i.e. free of any mortgages and other claims) to ensure a buyer is protected from the numerous pitfalls; this will also enable the resale of the property without encountering any problems over ownership.

However, according to Korantina Homes, their Chinese clients are purchasing a mixture of properties, some off plan, some with title deeds and some where the deeds are “almost ready”.



7/30/2012

U.S. construction projects in Afghanistan challenged by inspector general’s report



Πηγή: Washington Post
By Rajiv Chandrasekaran
July 29 2012

A U.S. initiative to spend hundreds of millions of dollars on construction projects in Afghanistan, originally pitched as a vital tool in the military campaign against the Taliban, is running so far behind schedule that it will not yield benefits until most U.S. combat forces have departed the country, according to a government inspection report to be released Monday.

The report, by the special inspector general for Afghanistan reconstruction, also concludes that the Afghan government will not have the money or skill to maintain many of the projects, creating an “expectations gap” among the population that could harm overall stabilization efforts.

The study calls into question a fundamental premise of the U.S. strategy to counter the Taliban insurgency — that expensive new roads and power plants can be funded and constructed quickly enough to help turn the tide of war — and it poses a sobering, counterintuitive question for policymakers in Washington: whether the massive influx of American spending in Afghanistan is actually making problems worse.

Many U.S. military commanders, diplomats and reconstruction experts have long believed that large infrastructure projects were essential to fixing Iraq and Afghanistan. Now-retired Gen. David H. Petraeus, the former top commander in both wars who is now director of the CIA, used to say that cash was one of his most important weapons.

But the latest report adds new weight to the argument — voiced by independent development specialists and even a few government officials — that the United States attempted to build too much in a country with limited means to assume responsibility for those projects. All U.S. combat forces are expected to be withdrawn from Afghanistan by the end of 2014.

Until now, most critiques have asserted only that the massive U.S. foreign assistance program has led to waste and fueled corruption. The new report goes further by suggesting that some projects may ultimately prove detrimental.

In a written response to the report, the U.S. Embassy in Kabul said it was “speculative” for the inspector general to conclude that some of the projects would have adverse effects. The top Pentagon official responsible for Afghanistan called the report premature and insisted that the announcement of the projects, even though they have not been completed, has generated goodwill and excitement among the Afghan people.

The inspector general’s examination focuses on the Afghan Infrastructure Fund, which was authorized by Congress in 2010 in part to prevent the Defense Department from dipping into a discretionary account for military commanders to bankroll large projects. The infrastructure fund was supposed to allow the Defense and State departments to collaboratively plan and pool money for large infrastructure improvements aimed at supporting the U.S. counter­insurgency campaign.

Since then, Congress has poured $800 million into the fund and the State Department has committed about $1 billion of its funds to related infrastructure programs.

Among the projects criticized by the inspector general is a plan to use costly diesel generators to provide electricity to residents of Kandahar, the country’s second-largest city, until the U.S. Agency for International Development and the U.S. Army Corps of Engineers install a new hydropower turbine at a dam in the violence-plagued hills of neighboring Helmand province. Purchasing diesel to run the generators, which produce about 25 megawatts of electricity each — enough to power about 2,500 Afghan homes or small businesses — is projected to cost U.S. taxpayers about $220 million through 2013.

Senior U.S. commanders argued that increasing electricity through the “Kandahar Bridging Solution” would be an important part of the overall American military effort to beat back the Taliban in Kandahar province. Those commanders asserted that more power to operate lights, television sets and fans would please residents and lead many of them to throw their support behind the Afghan government.

But other civilian and military officials have questioned that logic. When U.S. Army Maj. Gen. Kenneth Dahl was the deputy commander of U.S. forces in Kandahar last year, he said he could not find any evidence that the additional electricity was yielding greater employment, stability or support for the government. “This is a bridge to nowhere,” he declared to his staff in 2011.

Back then, Dahl also noticed a disturbing disparity: The installation of the turbine at the dam, which will not occur for at least two more years, will produce significantly less power than the city receives from the generators. Since the Afghan government will not have the financial ability to buy diesel for the generators, that means the city’s power supply will inevitably ebb once the turbine is operational and U.S. funding for diesel ends.

That gap was seized upon by the inspector general. “While the Kandahar Bridging Solution may achieve some immediate [counter­insurgency] benefits because — as stated by USAID officials — ‘people like having their lights on,’ the U.S. government may be building an expectations gap that cannot be met in a timely manner,” the report states.

The inspector general’s report also questions whether a new $23 million road in Helmand province will have adverse effects because the Afghan government has not compensated landowners for the destruction of their property. In addition, the report reveals that four electricity projects — costing a total of more than $300 million from the infrastructure fund — have not yet been awarded to contractors, despite claims from the military and USAID that they will have important counterinsurgency benefits.

Sen. Claire McCaskill (D-Mo.), a frequent critic of Afghan reconstruction efforts, said the report raises fundamental questions about the strategic rationale of U.S. development programs in the war-torn nation. “There’s no data that shows these major projects have changed the security environment in the country,” she said. “We cannot just throw money at a country like this and expect it to have a good ending.”

In its response to the report, the U.S. Embassy defended the importance of large-scale development initiatives. “These critical infrastructure projects have signaled to Afghan populations the U.S. government’s long term commitment to Afghanistan.”

Although the United States has spent almost $90 billion on Afghan reconstruction and development over the past decade, such examinations traditionally had not been conducted by the special inspector general’s office, which was more interested in contracting waste and fraud. This report was approved by a new inspector, former federal prosecutor John F. Sopko, who took charge of the office this month. He has vowed to scrutinize how projects are conceptualized and designed, not just how they are implemented.


China's Growing Space Power



Πηγή: The National Interest
By Frank Klotz
July 26 2012

Commentators often refer to China as an “emerging space power.” This characterization understates China’s current space capabilities. China has in many respects already reached the top tier of spacefaring nations—with profound implications not only for America’s own interests in space, but also for the much-touted “pivot” to the Asia-Pacific region.

While initially starting well behind the two original space powers, China has slowly but steadily added accomplishments to its space portfolio. In 2011, it conducted nineteen space launches—twelve less than Russia that year but one more than the United States. It has manufactured satellites for domestic use and marketed satellites for export, with customers in Southeast Asia, Africa and South America. Chinese spacecraft already have orbited the moon, and Beijing has signaled its intention to land an unmanned probe and possibly even astronauts on the lunar surface.

In late June, China’s space endeavors captured headlines across the world when three Chinese astronauts manually docked their Shenzhou-9 spacecraft with the orbiting Tiangong-1 module. In doing so, China became only the third nation besides the United States and Russia to accomplish this complex maneuver. It also demonstrated a capability it will need to one day assemble and operate a permanently manned space station.

Western experts note that a fundamental purpose of the Chinese space program is to bolster the image of China—and the ruling Chinese Communist Party—both at home and abroad. It also aims to spur the development of Chinese science and technology.

Chinese activities in space also have an undeniable military purpose. By their very nature, certain space-related capabilities—launch, earth observation, long-distance communications, precision navigation—can serve both civil and military objectives. In China’s case, the overlap is substantial. The People’s Liberation Army (PLA) in fact directs major elements of the nation’s space program, including manned spaceflight.

As Dean Cheng of the Heritage Foundation has noted, Chinese military writings emphasize the roles space systems can play in supporting air, land and sea operations. These include finding and attacking American forces operating in the Asia-Pacific region. With this end clearly in mind, the PLA is expanding its current constellations of reconnaissance, navigation, meteorological and communications satellites.

Likewise, Chinese strategists understand the growing extent to which the United States and its allies depend upon space-related capabilities in conducting their own military operations. Accordingly, China appears intent on developing capabilities to disrupt an adversary’s ability to use space systems, either by attacking satellites directly or by interfering with the ground stations and the communications nodes essential to satellite operations.

For example, in 2007, China conducted a test of a direct-ascent antisatellite interceptor that literally blasted an aging Chinese weather satellite into thousands of metal shards. In the process, it created a cloud of debris that will pose a serious hazard to satellites flying in low-earth orbit for many years to come.

Earlier this year, the Pentagon’s annual report to Congress on China’s military stated that Chinese counter-space capabilities also include “jamming, laser, microwave, and cyber weapons” and that “China has also conducted increasingly complex close proximity operations between satellites while offering little in the way of transparency or explanation.”

In fact, China’s intentions in space, as with many aspects of its military modernization and cyber programs, are opaque. Washington has called for enhanced dialogue with Beijing on strategic issues and for military-to-military exchanges to help reduce uncertainty and potential misunderstandings. China has repeatedly blocked such efforts, usually in response to the announcement of U.S. military sales to Taiwan. In this respect, the recent visits by the Chinese defense minister to the United States and the commander of U.S. Pacific Command to China are encouraging developments.

Official discussions between U.S. and Chinese space experts are even more problematic and politically charged. In 2006, NASA administrator Michael Griffin made a “get-acquainted” visit to China—the first-ever by the head of the U.S. space agency. Four years later, his successor, Charles Bolden, followed suit.

However, in May of last year, the House inserted a provision into the NASA appropriations bill that prohibited it and the White House Office of Science and Technology Policy from spending any funds “to participate, collaborate, or coordinate bilaterally in any way with China or any Chinese-owned company.” It also blocked the hosting of official Chinese visitors at facilities belonging to or used by NASA.

This legislative action reportedly reflected deeply held concerns about protecting American intellectual property and sensitive technologies in the face of aggressive Chinese attempts to glean scientific and technical information from abroad. However, in the process, it foreclosed one possible avenue for gaining greater insight into China’s intentions with respect to space.

It’s worth recalling that even in the darkest days of the Cold War, the United States and its archrival at the time—the Soviet Union—embarked upon cooperative efforts in space, most famously with the joint Apollo-Soyuz docking mission in 1975.

Today, despite the sometimes sharp policy disagreements at the political level, the United States and Russia work together closely on the International Space Station as well as in the commercial space sector. For example, the first stage of one of the rockets that currently lofts U.S. national-security satellites into orbit—United Launch Alliance’s Atlas V booster—uses the powerful RD-180 rocket engine, which is made in Russia.

The United States and Russia have succeeded over the years in collaborating on space projects because both countries have something significant to gain and, equally importantly, something significant to contribute. At the moment, potential areas of cooperation with China appear to be limited, particularly since Chinese space science currently takes a backseat to military programs. That, however, may be changing with plans for several ambitious science missions reportedly now in the works.

As the United States pursues its stated policy of devoting greater attention to the Asia-Pacific region and encouraging an increasingly powerful China to support constructive approaches to resolving political and economic differences, it’s certainly worth carefully considering whether aspects of the U.S.-Russian experience with space cooperation can be pursued with China in order to serve long-term American interests.

Frank Klotz is a senior fellow at the Council on Foreign Relations in Washington, DC, as well as the former commander of Air Force Global Strike Command and the former vice commander of Air Force Space Command.


Truck owner wants DEA to pay up after botched sting

Craig Patty is seeking damages after his truck was used without his permission as part of a botched law-enforcement operation that left the driver dead.

Πηγή: chron
By Dane Schiller
July 29 2012

The phone rang before sunrise. It woke Craig Patty, owner of a tiny North Texas trucking company, to vexing news about Truck 793 - a big red semi supposedly getting repairs in Houston.

"Your driver was shot in your truck," said the caller, a business colleague. "Your truck was loaded with marijuana. He was shot eight times while sitting in the cab. Do you know anything about your driver hauling marijuana?"

"What did you say?" Patty recalled asking. "Could you please repeat that?"

The truck, it turned out, had been everywhere but in the repair shop.

Commandeered by one of his drivers, who was secretly working with federal agents, the truck had been hauling marijuana from the border as part of an undercover operation. And without Patty's knowledge, the Drug Enforcement Administration was paying his driver, Lawrence Chapa, to use the truck to bust traffickers.

At least 17 hours before that early morning phone call, Chapa was shot dead in front of more than a dozen law enforcement officers - all of them taken by surprise by hijackers trying to steal the red Kenworth T600 truck and its load of pot.

In the confusion of the attack in northwest Harris County, compounded by officers in the operation not all knowing each other, a Houston policeman shot and wounded a Harris County sheriff's deputy.

Still waiting

But eight months later, Patty still can't get recompense from the U.S. government's decision to use his truck and employee without his permission.

His company, which hauls sand as part of hydraulic fracturing operations for oil and gas companies, was pushed to the brink of failure after the attack because the truck was knocked out of commission, he said.

Patty had only one other truck in operation.

In documents shared with the Houston Chronicle, he is demanding that the DEA pay $133,532 in repairs and lost wages over the bullet-sprayed truck, and $1.3 million more for the damage to himself and his family, who fear retaliation by a drug cartel over the bungled narcotics sting.

"When you start a new business, there are obvious pitfalls you go through, a learning curve," said Patty, who before buying his two trucks worked in the pharmaceutical industry. "But who would ever be ready to deal with this?

"How am I — a small businessman, father of three, American Joe from Texas — supposed to make a claim against a federal agency that has conveniently shrouded itself behind a red, white and blue cloak of confidentiality and secrecy?"

Copies of letters and emails from Patty's insurance company state that it won't pay for repairs because the truck was part of a law-enforcement operation. Patty drew from his 401K retirement fund to repair the truck, which was out of operation for 100 days.

"I was not part of this," he said. "I had absolutely no knowledge of any of it until after it happened."

For its part, the DEA has not admitted that it was using Chapa as a spy because its official policy is not to comment on whether someone was an informant.

Lisa Johnson, a spokeswoman for the DEA Houston Division, confirmed that Patty's demand had been received and noted that it would be investigated by the agency. But the Chronicle established Chapa was an informant based on interviews with multiple law-enforcement officials who spoke on the condition they not be named, and later by courtroom comments of prosecutors.

Patty's request chronicles much of what he's been through, including the operating costs for his trucks and everything repaired or replaced due to the attack. Among other disturbing chores was the need to hire a Spring-based company to clean up the mess in the cab caused by the killing.

Houston lawyer Mark Bennett, who is advising Patty, said if Patty's initial claim is not resolved, the next step would be to sue.

1,000-mile detour

Patty hired Chapa five weeks before the shooting and now wonders how many of the trips in the $90,000 rig included DEA work. GPS information from the truck reveals an unauthorized trek to the Rio Grande Valley in the days before Chapa was killed. He took a 1,000-mile round trip detour from the route he was supposed to travel.

Perhaps most unnerving, Patty says, is that drug mobsters now likely know his name, and certainly know his truck.

Panic at the Patty home these days can be triggered by something as simple as a deer scampering through the wooded yard or a car pulling into the driveway. One morning as his wife made breakfast, one of his young sons suddenly bolted across the house yelling, "Get the guns!"

A Bronco sport utility vehicle had pulled into the driveway past a broken gate. The dogs were barking in the darkness. Patty grabbed a pistol and headed for the front yard.

The Bronco pulled away, leaving a shiny object by the front walkway. It turned out to be the morning newspaper wrapped in a plastic bag reflecting a neighbor's floodlight.

The whole ordeal has forced his children to grow up more quickly than he'd like, Patty said.

"I wanted to keep them young as long as I could," he said. "I've gone to great lengths to keep my son believing in Santa Claus, and now I'm talking to him about death, mayhem and drug cartels.

"That is a huge canyon between the two."

The truck has a new driver, but there's still one bullet hole inside the truck's cab. A chunk of seat cushion, sliced out as evidence, has been covered with a patch.

"I really do not worry about driving it," said driver Norman Anderson - as long is it doesn't involve a trip to South Texas.

"I feel like if I go there, I should put an 'X' on each side of my neck, draw a dotted line between them, and write, " 'cut here.' "



As Syrian War Drags On, Jihadists Take Bigger Role

A gunman who said he was a member of a jihadist group near the Bab al-Hawa border crossing in Syria. The signs read “The solution is Islam,” left, and “There is no god but God.”


Πηγή: New York Times
By NEIL MacFARQUHAR and HWAIDA SAAD
July 29 2012

BEIRUT, Lebanon — As the uprising against President Bashar al-Assad’s government grinds on with no resolution in sight, Syrians involved in the armed struggle say it is becoming more radicalized: homegrown Muslim jihadists, as well as small groups of fighters from Al Qaeda, are taking a more prominent role and demanding a say in running the resistance.

The past few months have witnessed the emergence of larger, more organized and better armed Syrian militant organizations pushing an agenda based on jihad, the concept that they have a divine mandate to fight. Even less-zealous resistance groups are adopting a pronounced Islamic aura because it attracts more financing.

Idlib Province, the northern Syrian region where resistance fighters control the most territory, is the prime example. In one case there, after jihadists fighting under the black banner of the Prophet Muhammad staged significant attacks against Syrian government targets, the commander of one local rebel military council recently invited them to join. “They are everywhere in Idlib,” said a lean and sunburned commander with the Free Syrian Army council in Saraqib, a strategic town on the main highway southwest from Aleppo. “They are becoming stronger, so we didn’t want any hostility or tension in our area.”

Tension came anyway. The groups demanded to raise the prophet’s banner — solid black with “There is no god but God” written in flowing white Arabic calligraphy — during the weekly Friday demonstration. Saraqib prides itself in its newly democratic ways, electing a new town council roughly every two months, and residents put it to a vote — the answer was no. The jihadi fighters raised the flag anyway, until a formal compromise allowed for a 20-minute display.

In one sense, the changes on the ground have actually brought closer to reality the Syrian government’s early, and easily dismissible, claim that the opposition was being driven by foreign-financed jihadists.

A central reason cited by the Obama administration for limiting support to the resistance to things like communications equipment is that it did not want arms flowing to Islamic radicals. But the flip side is that Salafist groups, or Muslim puritans, now receive most foreign financing.

“A lot of the jihadi discourse has to do with funding,” noted Peter Harling, the Syria analyst with the International Crisis Group, adding that it was troubling all the same. “You have secular people and very moderate Islamists who join Salafi groups because they have the weapons and the money. There tends to be more Salafi guys in the way the groups portray themselves than in the groups on the ground.”

But jihad has become a distinctive rallying cry. The commander of the newly unified brigades of the Free Syrian Army fighting in Aleppo was shown in a YouTube video on Sunday exhorting men joining the rebellion there by telling them: “Those whose intentions are not for God, they had better stay home, whereas if your intention is for God, then you go for jihad and you gain an afterlife and heaven.”

What began as a largely peaceful, secular protest movement in March 2011 first took on a more religious tone late last summer as it shifted into an armed conflict waged by more conservative, more rural Sunni Muslims whose faith already formed an integral focus of their daily lives.

But greater attention has been focused on a Qaeda involvement in the uprising since mid-July, when fighters professing allegiance to the terrorist organization appeared during the opposition takeover of the Bab al-Hawa border crossing with Turkey. In one video, five fighters declared their intention to create an Islamic state. (Mainline Qaeda ideology calls for a Pan-Islamic caliphate.)

Still, there is, as yet, no significant presence of foreign combatants of any stripe in Syria, fighters and others said. The Saraqib commander estimated there were maybe 50 Qaeda adherents in all of Idlib, a sprawling northwestern province that borders Turkey. The foreigners included Libyans, Algerians and one Spaniard, he said, adding that he much preferred them over homegrown jihadists. They were both less aggressive and less cagey than the locals, said the commander, interviewed in Turkey and via Skype and declining to be further identified.

An activist helping to organize the Syrian military councils said there were roughly 50,000 fighters in total, and far fewer than 1,000 were foreigners, who often have trouble gaining local support. “If there were 10,000, you would know, and less than 1,000 is nothing,” said the activist, Rami, declining for safety reasons to use more than one name.

Not all foreign fighters are jihadists, either. One Libyan-Irish fighter, Mahdi al-Harati, who helped lead the battle for Tripoli, Libya, organized a group of volunteers for Syria, noted Thomas Pierret, a lecturer in contemporary Syrian Islam at the University of Edinburgh. “He is not a jihadi; he sees himself as a Libyan revolutionary there to help the Syrian revolution,” Mr. Pierret said.

Fighters, activists and analysts say that jihadi groups are emerging now for several reasons. They generally stand apart from the Free Syrian Army, the loose national coalition of local militias made up of army defectors and civilian volunteers. Significantly, most of the money flowing to the Syrian opposition is coming from religious donors in Saudi Arabia, Qatar and elsewhere in the Persian Gulf region whose generosity hinges on Salafi teaching.

Further, as the sectarian flavor of the uprising deepened, pitting the majority Sunni Muslims against the ruling minority, the Alawites, it attracted fighters lured by a larger Muslim cause. Alawites, the president’s sect, dominate Syria, but many orthodox Muslims view them as a heretical offshoot of Shiite Islam.

Understanding the military players in the Syrian opposition has become remarkably more difficult in recent months through the proliferation of brigades, battalions and fronts, many bearing religious names. Plus they change all the time, and some have all but disappeared.

But there is a marked trend in videos not displaying the revolutionary banner — Syria’s independence flag with a green, white and black stripe and three red stars. “The issue of the flag really is key,” Mr. Pierret said, “They are on their way to a more Salafi, jihadi agenda and a rejection of the national framework.”

One recent such video, highlighting the storming of a police station hear Aleppo, featured a pistol, the Koran and a song about fighting. “The Koran in our hands, we defy our enemy, we sacrifice with our blood for religion” were some of the lyrics.

The commander in Saraqib said that when he invited jihadists into his military council, they rejected several proposed names for the expanded group that included references to Syria. “They consider the entire world the Muslim homeland, so they refused any national, Syrian name,” he said.

The attitude prompts grumbling from fighters used to the gentler Islam long prevalent in Syria. Adel, a media activist from Idlib interviewed in Antakya, Turkey, in June, complained that “the Islamic current has broken into the heart of this revolution.” When a Muslim Brotherhood member joined his group in Idlib, he said, inside of a week the man demanded that the slogans that they shouted all included, “There is no god but God.”

“Now there are more religious chants than secular ones,” Adel groused.

Behind the surface tussling over symbols lies a fight for power and influence. Those attacking the government in the name of religion want more say, while those who preceded them want to limit their role. As in Iraq, the longer the fight, the more extremists will likely emerge.

For now, both fighters and analysts said not all the jihadist symbols could be taken at face value. The scarcity of weapons and ammunition in the unbalanced fight with the government inspires much more tension than ideology.

Some Syrians who seek a more secular revolution blame the lack of Western support for driving the rebellion into the arms of the extremists, either by not supplying arms or by not forcing a solution. “The radicalism is the result of a loss of hope,” said Imad Hosary, a former member of the nonviolent, local coordination committees inside Syria who fled to Paris. “The jihadists are those that say heaven awaits us because that is all they have left; the international community is responsible for not finding a solution.”

The most prominent emerging homegrown groups include Ahrar al-Sham and Sukur al-Sham, which field various chapters in Idlib and elsewhere. Jibhat al-Nusra, an organization that has claimed several suicide bombings, is considered weak on the ground, the experts said.

Ahrar al-Sham in particular enjoys the support of Sheik Adnan al-Arour, a Sunni Muslim media star in exile, who blasts Shiites and Alawites on his television show and on what appears to be his authentic Twitter account. “We buy weapons from the donations and savings of the Wahhabi children,” said one recent Twitter posting, referring to the Islamic sect prominent in Saudi Arabia and Qatar, “and not from the Americans like the Shiites of Iraq did.”

He has also lashed out against Hassan Nasrallah, the leader of Hezbollah in Lebanon, the militant Shiite organization that backs President Assad. “I ask Hassan Nasrallah how many wounded Syrians has he healed? Because I know how many he and his party killed.”

Members of the main homegrown groups denied harboring extremist tendencies, like declaring other groups or individuals apostates. Abu al-Khatab, in his late 20s, said he was a former fighter for Al Qaeda in Iraq before he joined Ahrar al-Sham. “I agree with Al Qaeda on certain things and disagree on others,” he said. “Suicide bombings should only be against the security forces, not civilians, for example.”

Abu Zein, a spokesman for Sukur al-Sham, said the organization included Syrians plus other Arabs, French and Belgians. “The Qaeda ideology existed previously, but it was suppressed by the regime,” he said in a Skype interview.

“But after the uprising they found very fertile ground, plus the funders to support their existence,” he added. “The ideology was present, but the personnel were absent. Now we have both.”

Rami, the activist, thinks the jihadi tendencies mark both the length of the fight and the fact that society in many areas has become male-dominated and unstable, with the elderly, women and children having fled. Syrian Islam, he said, tends not to sympathize with extremism. A broad fatwa issued via Ahrar al-Sham against all Alawites was so widely condemned by other fighters that it was later diluted to focus on government figures.

Rami described one local leader in Binnish, a town near Saraqib, questioning the religion of Ahrar al-Sham members who he thought were kidnapping too many local Shiites.

“He told them, ‘Damn your religion — who is this God of yours you are bringing? I have been a Muslim for 40 years, and this is a God we don’t know,’ ” Rami said.



Medvedev: Libya has influenced our position on Syria


Πηγή: RT
July 30 2012

Moscow is determined to work with its partners on Syria despite different views, Russian PM Dmitry Medvedev told The Times newspaper. Talking in London, he also praised organizers of the Olympics and said Sochi 2014 could use some British experience.

Q: What did you think of yesterday's Olympic opening?

А: You know, actually, I liked it for several reasons. First, of course, it was a huge and expensive show. It was very, very well organized. Most importantly though, it was a British show. It was not Chinese, or American, or Russian. The atmosphere was genuinely British. I think the central theme (of course, apart from sports, Pierre de Coubertin’s ideas and various historical reminiscences) was British music. It was presented in all its glory. Considering that people all over the world, including Russia, love British music, I think it was a very good idea to use it as a common language, as a communication tool that a large number of people understand. I took a few pictures and posted them on Instagram. Most Russian people who watched the opening ceremony enjoyed it totally. They write in their comments basically the same things I’ve just said.

Of course, as we watched the ceremony, we thought about the future. Our opening ceremony in 2014 will be different, of course. It will be a Winter Olympics, and I think it should not be as long, because this one was more than three hours long. But anyway, I think the specialists who will be staging our ceremony will analyze it and pick up some general principles.

So to summarize, it was very interesting, and they had many good ideas. Rowan Atkinson’s appearance, for example, was really funny. I didn’t expect I would laugh at the opening ceremony. But he was really good and did a good job.

And, of course, the key moment, that is, the lighting of the Olympic Flame, is always very important. Each time, it is a big secret, because the organizers want to surprise everybody. This time, too, it was impressive, as we saw the baton passed from the older generation to young athletes. And, of course, when they lit this great number of petals and the flame went up, this was also unique and really impressed me. And then, of course, there were outstanding athletes like Steve Redgrave. We know him because he was in Russia for our regatta, and I even unveiled a rowing club together with him. So it was very interesting and highly symbolic. My congratulations!

Q: Will Sochi be learning some things from the London Games in terms of organization? Are you cooperating quite closely with London at this point?

A: I think it is absolutely necessary. We are already cooperating, and part of the reason for coming here was to see some things and discuss some things with our colleagues. We have a large delegation here. Some of these people, of course, are here to help the athletes, but apart from that we have the top officials from the Russian Olympic Committee and the key members of the government responsible for the Sochi Games here as well. And they came here not only to promote our Games, but also to exchange ideas and develop cooperation with our partners. I think this is very, very helpful. But actually we have been doing this for quite a long time.

Q: Mr. Medvedev, did you have a chance to talk to David Cameron? Have you had discussions about the state of Anglo-Russian relations? And how would you assess those relations at the moment?

A: When you come to the opening ceremony, your purpose, of course, is not to have fully-fledged talks. But thanks to the schedule our British partners had kindly prepared, I had a chance to talk to about 20 presidents and prime ministers yesterday. The first person I talked to was David Cameron. Given the circumstances, we had a pretty extensive conversation at Buckingham Palace. I can tell you frankly that we discussed everything from British beef exports to Russia, to Syria, of course. We talked about all sorts of things. Of course, I wished David and all the British people good luck with the Games. I said I was certain the XXX Olympic Games would be remembered by all, even though it is not easy for the city and the country in general to organize such an event.

Q: How would you characterize Anglo-Russian relations? They had a very difficult few years. You hosted Mr. Cameron as president. How would you say relations are now? Are there periods of tension that have remained?

A: On the whole, I think our relations are not bad. We did have a period of tension, but this was not the first time in the history of our two countries that this had happened and each time our countries and their leaders were able to turn the page and look to the future, because time goes on and the state of our relations has a serious impact on global affairs. Historically, our countries have been partners. At some points, we were rivals, but then at other points, like at the time of war, we were partners. So short-term difficulties should not make us forget the main thing. We have no other option but to cooperate in all sorts of areas, including economic issues, because we are all concerned about the situation on the global financial markets and in the eurozone. It affects both Russia and the UK. Fortunately, neither Russia nor Britain is part of the eurozone. But we trade with those countries a lot, and Britain is an EU member. This alone is enough to keep us in contact all the time.

As for other issues, there are always some international affairs on the agenda. We have consultations. I can say that it was quite easy for me to work with Mr. Cameron’s predecessor, Mr. Brown. We had a good working relationship, even though he often said, “We have differences on this subject.” This formula was used a lot, but still we had a good relationship. And now, I think both Vladimir Putin and myself have a good working relationship with David Cameron, and we can have a frank discussion on any subject.

There are some difficulties, but we don’t need to emphasize them. Otherwise, we may end up in a deadlock. Actually, I think those difficulties are temporary and insignificant. So on the whole I would say everything’s fine.

Q: You mentioned Syria. This is clearly one of the big international worries at the moment. Russia has had a number of initiatives in trying to solve the situation there. I think David Cameron has a very different point of view from your own point of view. But both sides agree that the Annan plan is perhaps the only political way forward. Do you think that plan still has a chance to succeed given the fact that things are moving so swiftly on the ground?

A: I don’t want to be overly optimistic because the situation is very difficult and very complex. But I don’t think that the Annan plan is no longer relevant, and the reason is because it is a political, peaceful plan. In fact, it may seem that the positions of Russia and Britain, or Russia and the US, are vastly different, but actually they are not that different. We all agree that a full-scale civil war in Syria would be the worst-case scenario. And what we have today is, if you will, the premonition of civil war. A huge number of people have been killed. As usual, both sides are to blame, because they would not listen to each other and come to the negotiating table.

I reminded David yesterday that I had told President Assad more than a year ago that he should act promptly and carry out reforms and, most importantly, build a relationship with the opposition, even though it may be difficult for him, even though he belongs to the Alawite minority, and most opposition activists belong to a different branch of Islam. Syria is a very complex state. It’s much more complex than Egypt or Libya because of all the communities living there: Sunnis, Shia, Alawites, Druze and Christians. They will either find a way to get along or civil war and killings will go on indefinitely. So both sides are to blame. They should come to the negotiating table and find a solution to this very difficult problem. I don’t know what the future political situation in Syria will be like, and I don’t know what role Mr. Assad will have in this future arrangement. It’s up to the Syrian people to decide.

The difference between Russia and Britain on this issue is that we believe talks are the only way, and our partners want to take more drastic measures. But the question is – where is the line between resolutions and a military operation? We saw that with the resolution on Libya. It basically led to international intervention. This is a bad way. Both President Obama and Prime Minister Cameron assured me this is not what they want. So I think the plan is not over, and we should cooperate and continue consultations.

By the way, I discussed the subject yesterday with the Lebanese leader and the Turkish prime minister. So as you can see, the Syrian issue remains high on the agenda even at the Olympics. And since according to the constitution it is up to the president to shape foreign policy, I think Vladimir Putin will present Russia’s position on this issue.

Q: You were president at the time of the Libyan intervention and the diplomatic proceedings that went before the Libyan intervention. Is that experience actually now influencing Russia’s position on Syria? Did you feel that you were somehow betrayed over the Libya scenario and that you don't want to see a similar situation in Syria?

A: Of course, this is influencing our position. In fact, when the situation with Syria started, I said from the very beginning that we would adjust our approach because of what happened with Libya. When the resolution on Libya was adopted, we thought our countries would hold consultations and talks and at the same time we would send a serious signal to the Libyan leader. But unfortunately it ended up the way it did. They kept telling us there would be no military operation, no intervention, but eventually they started a full-blown war that claimed many lives. And most importantly, I think it is a bad way to determine a country’s future. We all share democratic values, but imposed democracy usually does not work. Democracy must grow from inside. Only then does it enjoy popular support. So, what happened with Libya has definitely affected my position and continues influencing Russia’s position on the Syrian conflict.

I believe the past few years have been the most productive ones in Russia-US relations. And I am glad that during this period I had a chance to work with President Obama on resetting our relations. I think we have achieved a lot, even though we still have differences on a number of issues. This is how international politics works: each state is guided by its own national interests the way it understands them. The Americans understand them in their way, the British in theirs, and Russia understands its national interests in its way, too. As a whole though, those were very positive years.

I don’t think that we’ve entered a new era or that Russia is now taking a harder line with regard to the US, as the media claim. I don’t think that our priorities have changed or that the reset is over, that it hasn’t produced any results. This is completely wrong. It has produced many useful results, like the New START treaty. We had no treaty in place but we have one now, and it will determine our interaction for the years to come, even though we have our differences on missile defense. We’ve managed to reset a number of useful mechanisms. We’ve had many consultations on international issues.

This is the first US administration to help Russia join the WTO, and I will always be grateful to Barack Obama for being fair. I remember how one day we were in a car together, talking without interpreters, and he told me, “You know, I’ll help you join the WTO.” And he did. You don’t forget such things. This shows he’s a man of his word.

It is not like something terrible, or extraordinary, is happening in our relations. When some people say our position has changed, they usually do so for ideological reasons. I hope President Putin also has a good working relationship with Barack Obama. In fact, this is already happening. They keep in contact and they write and call each other. This is perfectly normal. Of course, I will do my best to help develop this dialogue as much as I can within the constitution. So everything’s fine.

Q: You mentioned missile defense as a sort of outstanding difficulty that remains between the two sides. Is there any sign that you will come to agreement on this? Or that the US is willing to accommodate your concerns?

A: I think the problem is that no one understands entirely what missile defense actually stands for. What about you – do you have a profound understanding of what missile defense is? I’m sure not. Nor do the Americans, as in, American taxpayers. And as far as Europe is concerned, I’ve been told in private by some of the European leaders, “We don’t want that at all, but the Americans as our senior partners in NATO are insisting.” And that means a lot of money!

But most importantly, there is a question that never seems to get a proper answer: who is the threat that the missile shield is intended to counter? If it’s meant to check nations that pursue unauthorized nuclear programs and design new missiles, then it’s something we can understand. But in that case you need to explain to us why this missile shield and its interceptor missiles can intercept targets coming from Russia – which means they affect our nuclear capability. Now, if the architecture is intended against us, you should go ahead and say so. But that would constitute a disruption of the nuclear parity that Russia has maintained with the United States to this day, and this parity has been a key factor in ensuring security since World War II.

And this is a question we’ve had trouble getting an answer to. The US administration and some European partners keep telling us, “You don’t need to worry, you and we are certainly friends and we collaborate through the NATO-Russia Council, so everything will be alright.” But at the same time, US lawmakers on Capitol Hill are openly saying, “Of course it is against Russia, who else?” There are certainly different people in the Congress, and I prefer not to specify, but the trend itself is very telling.

So I believe NATO should first make up its mind: what is it they really want from their Phased Adaptive Approach? That’s number one, and number two is, what is Russia’s intended role? Because they’ve already turned down the proposal I made at the Lisbon Summit, regarding a joint missile defense architecture that would involve Russia. This is truly regrettable, because that initiative would have enabled us to get past this debate and effectively secure ourselves against the nations that may pose a genuine threat to both Russia and NATO member states. So you’ve turned down that initiative, now why don’t you tell us what’s going to happen next?

There is still time. I’ve mentioned it, and so has our incumbent president. But that time is naturally running out. And unless we manage to agree on something by 2018, a new arms race may become a possibility – which would be extremely bad for all of us, expensive and badly inefficient too.

Q: Mr. Medvedev, I remember listening to you a year ago at the St. Petersburg Economic Forum, where you gave a very impressive speech about the future of the economy in Russia and, in particular, the dangers for your economy and the dangers from corruption. And you said that one of the things you would do is to make sure that if an official was accused of corruption, he would be removed from his job while an investigation was going on, to make sure there was no possibility. Do you think enough officials have been removed from their jobs to make it clear that you have overcome this problem? Or is there still a lot to do?

A: I still consider corruption a systemic threat to Russia, or any other country at that. But it is especially true of Russia, because we are a young democracy, and our economic institutions are still largely in the making. That is why I don’t see much progress on our part lately in combating corruption. Yet I have said publicly on many occasions that I’m very proud of having initiated a number of anti-corruption institutions that had simply been non-existent in Russia before. My years of serving as president and promoting the relevant initiatives have resulted in Russia developing anti-corruption laws. And that in itself is important, because it means we’ve acknowledged there’s a problem. Some five or seven years ago, it rarely even made it into public debate: well, yeah, we have corruption, but we’ve always had it. We had it in the Russian Empire, and we had it in the Soviet period. It’s still with us today, so just let it be – that was the sentiment.

Today, we are aware that this is a real systemic issue. We have the necessary regulatory instruments to deal with it. Thousands of public servants have already faced criminal investigations on charges of corruption, and a fair share of those cases result in actual prison sentences. Is that enough? No, it isn’t. We need to work harder and get down to the root causes, we need to upgrade our institutions, and we need to bring perpetrators to justice. By the way, I presided over a session of the Open Government recently, and this is essentially an expert panel set up specifically for such purposes. And the experts have come up with a whole list of new ideas, which I will certainly share with my fellow Cabinet members, and some of those proposals may eventually be implemented by the government.

But we need to keep on working. In principle, any society is confronted at some point or another by new forms of corruption, which government institutions and security agencies turn out to be unprepared for. I studied a review of the British press today, and I’ve noticed that corruption is a popular news topic in Britain, and corruption-related cases are given a lot of attention in London and in other places. This doesn’t mean corruption has gained in scale in the UK, but nevertheless, people are concerned. And that’s natural; people are also concerned about it in Russia. An absolute majority of Russians – no less than half, I’d imagine – regard corruption as a systemic risk for our society, and they believe the government should commit its efforts and its assets to combat this kind of crime. I am sure we’ll continue our work.

Q: You mentioned that Russia is a young democracy, and in recent months we've seen a real flowering of civil society activities, many of which you have responded to and encouraged through changes in the law to make it easier for political parties to register, and other things like that. More recently there's been concern though about laws which appeared to be going in the other direction, registering NGOs as foreign agents for example, imposing tighter restrictions on demonstrations, and the most recent case involving the Pussy Riot girls who are accused of hooliganism. Do you feel that that this criticism is justified, that Russia is somehow becoming less free, or do people really not understand what's happening in Russia?

A: You know, it seems to me that sometimes people just start believing in some phantoms and following some stereotypes. Personally, I don’t think anything special has been happening in Russian legislation in recent months. But if someone wants to prove that Russia has returned to totalitarianism and is rolling back civil rights, it will be very easy for them to find some proof because actually you can do that anywhere, in any country. For example, you mentioned the NGO bill. But the bulk of the bill the State Duma has adopted merely repeats what similar laws in a number of other countries, including the US, say. That’s my first point.

Second, the term “foreign agent” in itself is not a charge. It just reflects the fact that this NGO receives funds from abroad. It is only natural for a state to be concerned by political activities financed from abroad. It is the same all over the world, including the UK and the US. So I think there is nothing wrong with introducing some regulations in this situation. In fact, this law has yet to be applied. I am absolutely convinced that it will have no significant effect on the activities of NGOs involved in politics, let alone those involved in economic and cultural issues. So, we have this bill, but it hasn’t been implemented and so I think there is nothing to argue about. And even if we run into some problems, our lawmakers will be able to adjust this law and this includes the majority party that actually passed this law.

As to other high-profile issues, including the trial you’ve mentioned. Again, I think there is no reason to get excited. No sentence has yet been passed. The case is still under investigation. Indeed, there is a wide spectrum of opinions. In some countries such actions would have entailed far greater criminal liability. In fact, in some countries anyone who committed an act like this in a temple could have come to a rather sad end, no matter what religion the temple belongs to. But in any case, let's wait for the investigation to be completed and for the court to pass its verdict, and then we will be able to say whether there was a crime or not. It is easy to understand why this case has sparked so much controversy. It has to do with how we understand individual rights and freedoms. As I see it, there will always be differences on where to draw the line between ethics and law and how to define when an immoral act becomes a crime. And this is up to the court to decide. It is up to the court to rule whether there is a corpus delicti, in other words, elements of a crime. If there are none, this is a piece of real luck for the perpetrators: they hit the headlines and got away with what they did. But I do understand that for some of these girls being kept in prison is a real ordeal for them and their families.

Q: I was going to ask – you clearly as president introduced quite a few reforms to encourage civil society. Do you feel that civil society is healthy in Russia or is there more that could be done to promote political diversity, political pluralism?

A: On the whole, I think our civil society is getting more and more mature. When I ran for president in 2008, our civil society was less developed. Today our civil society is much more developed, diverse and active. This means our democracy is maturing and our civil society is growing.

Our people were extremely active during the Duma and presidential elections. This shows that they care about their outcome. This doesn’t mean I agree with everything that was said during that period, or that all the accusations against the authorities were false. But in any case it is good that people are so active in expressing their position, provided of course that they don’t break the law. And the authorities should engage in a dialogue with people.

By the way, all the changes to our political system that I presented in December are another result of the development of our civil society. So, I find it ridiculous when people talk about a “rollback” in Russia, or that Russia has abandoned democratic reforms, as we have actually solidified the foundation of our political system in recent years and even improved it.

We have radically changed our regulations for political parties. There will be many political parties now and they will be free to do what they want – again, as long as it is legal. We have reinstated elections for governors. Has anybody cancelled that? No, on the contrary, we are getting ready for these elections, together with the leaders of other political parties. I’ve recently met with the leaders of a number of other parties besides United Russia – of which I am the leader – and they are all preparing for the elections. They all are considering their chances in different places and they are very hopeful. Don’t you agree that this means our political system has changed? Don’t you agree that civil society is developing? So, I think we are doing fine.

Q: Just a final question – two final questions, one from me…

A: Three final questions?

Q: Thank you. You are famous for sending out tweets and directly responding to people who have called in to you. This is direct democracy in action. Do you have time to do that? Do you have time as prime minister now do you think to respond to all the young people who want to talk to you?

A: Absolutely. Right now, absolutely.

Q: Do you think Russia has embraced the whole Internet revolution? Oh, goodness, here we are – broadcast live. Do you think that the older generation has fully understood the complete need for absolute transparency in this kind of direct response from senior officials?

A: You know, this thing I’ve just shown you, and the new information environment in general, is the best safeguard against totalitarianism and a return to our sad past. No government in any country, even in some very complex areas like the Arab world, can ignore the omnipresent communications network that is emerging and developing whether the authorities like it or not.

By the way, the reason the authorities don’t like it is simply because people use it to criticize the authorities, and nobody likes that. I remember what some said about Twitter when there were riots in London. But nobody can do anything about it. We just need to create a proper legal framework for social networks. But you can’t block them. This means that a modern and up-to-date leader can’t afford to ignore this new information environment. Every leader should keep track of what’s going on there.

I think a successful politician must have direct contact with people. In the past, you had to physically go some place, step outside and meet people, and everybody, from emperors to prime ministers and presidents, did that. But this way you can only meet with people once or twice a month and you have a crowd of people standing around you, screaming something, and, of course, you can hear something but there are many things you can’t hear. As a result, all you can get is just bits and pieces. This is totally different.

Every day, I read at least 50 messages left for me via Facebook, Twitter, other social networks or even my website. If it is something important, I issue direct instructions. Sometimes in the morning, before I go to work, I go online and see something very urgent, something truly important. And then I print it out and write my instructions right on this sheet of paper.

In the past, it was unthinkable that the authorities could have this kind of direct interaction with people. I think this is very important. I repeat, if a politician can’t master these tools, he has no future.

Q: That leads actually very nicely to my final question which is: clearly you had an opportunity for a second term as president instead of becoming prime minister. Do you have any regrets about not pursuing the second term and might there be a second term in your future?

A: You’ve answered the question yourself. I am not that old. I am not going to resign from politics any time soon, and I have never said I will never run for president again – of course, as long as our people want me. If our people decide that they have had enough and they tell me good-bye, I’ll take up writing my memoirs.

But I strongly believe that at present there’s no reason for me, or for the political force I represent, to quit politics. So, I don’t rule out anything. Even today, I am very actively involved in politics, I work a lot, and I expect to keep doing that.

Thank you very much. I wish the people of Britain a wonderful Olympics I am sure people will remember it as another achievement in promoting the values of the Olympics, will remember its brilliant victories, the spectacular athletics events and British hospitality.