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Showing posts with label England. Show all posts
Showing posts with label England. Show all posts

Tuesday, May 25, 2010

NEW YORK TIMES STORY ABOUT ENGLISH CURRENCY PROBLEMS

May 24, 2010

In Europe, Britain May Face Largest Debt Hurdle

LONDON — As governments from Greece to Portugal to Spain try to sell markets on their budget-cutting zeal, the country that may face the biggest hurdle is Britain.

Propelled by a robust economy that finally collapsed in 2008, Britain’s spending boom was the most expansive in Europe, producing a welter of shiny hospitals, school buildings and highways, along with a cadre of well-paid public sector officials.

Now the new government must unwind not so much the debt incurred from two years of economic stimulus efforts, but more broadly, the structural deficits built up over more than a decade of expanded health care, education and pension commitments.

Prime Minister David Cameron has talked boldly of closing a British budget deficit now equal to 11 percent of its gross domestic product. But he also has said that he will allow health spending to outpace inflation, continuing a trend started by the Labour government that has doubled the cost of the government’s elephantine National Health Service since 2000.

It is this apparent disconnect between the promises of politicians and the harsh demands of investors for immediate and across the board spending cuts that is at the root of the financial crisis in Europe today.

Even after the nearly $1 trillion rescue package arranged by European Union leaders to shore up the weaker euro zone members, financial markets have gyrated as fears build that debt-plagued nations lack the will to stand up to powerful unions and pare back once generous welfare programs.

“You need a martyr to cut this type of deficit,” said Andrew Lilico, chief economist at Policy Exchange, a right-leaning London research group, who has argued that quick and immediate spending cuts would actually hasten economic recovery rather than derail it.

“You need someone to say, ‘I will do the right thing and everyone will hate me.’ ”

According to a recent analysis by Citigroup, Britain’s structural deficit — meaning the part of the budget gap that will not close even when the economy improves — was 9.2 percent of G.D.P. last year, ranking third in the world behind rapidly aging Japan and almost bankrupt Greece.

As is the case with other countries in Europe, like Spain, Greece and Ireland, Britain has a deficit that has grown mostly because of a decade of rising government outlays that seemed reasonable at the time, but rested heavily on rising tax revenue that disappeared when the bubble burst.

In a recent report, the International Monetary Fund warned that the countries that would have to make the biggest sacrifices in spending cuts and tax increases to return to precrisis levels of indebtedness — Britain, France, Ireland, Spain and the United States — also face the biggest increase in spending demands. These are driven by the rising number of the elderly, thus making the cuts all the harder to impose.

“All developed economies now have in-built structural components in their government deficits due to having pension and health systems and aging populations,” said Edward Hugh, an independent economist based in Barcelona. “And these costs will go up by the year.”

The British chancellor of the Exchequer, George Osborne, who has long urged the Conservative Party to trim the deficit, said on Monday that he would push through £6 billion ($8.65 billion) in spending cuts.

Though decidedly modest when compared with a budget deficit estimated to be about £178 billion, the cuts represent an effort to convince skittish markets that Mr. Cameron’s team is committed to fiscal restraint.

The latest menu of restrictions, freezes and spending reversals also represents an effort to convince the public that Britain must be in tune with the budget-cutting in Greece, Portugal, Spain and other parts of Europe.

“The years of public sector plenty are over,” Mr. Osborne said. “The more decisively we act, the more quickly we can come through these tough times.”

Mr. Cameron has fulminated publicly about cutting public sector pay and decreed that members of Parliament themselves take a 5 percent pay cut.

But it remains unclear whether he can force significant savings in what has become in many respects a public sector aristocracy of elite civil servants, heads of national railroads and top officials of obscure agencies, like the National Policing Improvement Agency and the Horserace Betting Levy Board. The heads of those two agencies, for example, were paid salaries last year that exceed Mr. Cameron’s pay of £197,000 (about $284,000) — £211,831 and £220,665, respectively.

Among the highest paid have been administrators and doctors within the country’s government-financed National Health Service, which has become its own separate economy with its 1.7 million employees and £100 billion plus budget.

For example, David Taube, a doctor, administrator and medical director for five hospitals comprising the Imperial College Healthcare N.H.S. Trust, was paid £260,000 (about $375,000) at the exchange rates last year. That is also more than the prime minister received.

According to the TaxPayers’ Alliance, an advocacy group for spending cuts, the highest-paid 805 government employees in Britain received a 5.4 percent pay increase last year, with the average official taking in £209,224.

Whether it be the £1.3 million paid to the chief executive of the Royal Mail, the £267,000 for the head of information technology in the Department for Work and Pensions, or the £270,000 earned this year by the chief executive of the Guy’s and St. Thomas Hospitals in London, the galloping pay of public sector workers in Britain has become a major component of the structural deficit and shows little sign of letting up.

“We have been doing this for five years now, and the numbers just get bigger and bigger,” said John O’Connell, an analyst at the TaxPayers’ Alliance.

Starting in 2000, the Labour government made it a priority to improve the N.H.S.’s lackluster reputation and invested billions in bricks and mortar as well as the salaries of its growing ranks of doctors and administrators.

Health care spending in Britain soared to 9 percent of G.D.P. from 3 percent. The image of the service has been transformed from one that exemplified drab inefficiencies of the British state to what is now hailed as a world archetype, even by Conservative politicians like Mr. Cameron.

As for Dr. Taube, a spokeswoman for the Imperial College Healthcare N.H.S. Trust said that he was a leading renal clinician and that the bulk of his salary, £180,000 to £185,000, came from his clinical work. He was paid an additional £75,000 to £80,000 for his administrative duties.

Now the new government must wrestle with whether it can restrain such pay and spending and at what political cost.

Monday, May 17, 2010

UK ECONOMY MAY BE ALLOWED TO CRASH AND BURN LIKE US BANKING GIANT


UK Economy May Be Allowed To Crash And Burn Like US Banking Giant
Analysts, Economists: Britain May Become Lehman To Greece's Bear Stearns

Steve Watson
Infowars.net
Tuesday, May 11th, 2010

Leading financial analysts and economists have warned that Britain may crash and burn following the European bailout of Greece, comparing the situation to that of Lehman Brothers following the rescue of Bear Stearns in 2008.

“The big question I am asking myself is whether Greece is Bear Stearns” Anthony Fry, senior managing director at Evercore Partners, told CNBC.

“What I really fear is that if Greece is Bear Stearns then the UK is Lehman Brothers.” Fry, who previously worked for Lehman added.

While other economists disagree, indicating that the UK can and will continue to devalue and print money, Fry believes the country's huge deficit puts it firmly at risk.

“I can’t believe (the UK) can avoid trouble," he said. "The current coalition talks are like arguing over a birthday cake.” Fry said, alluding to the ongoing negotiations between the political parties following the indecisive election last week.

“Once they decide how much of the cake they get they realize no one bothered to bake the cake.” Fry added.

“My big fear is that after (Chancellor of the Exchequer) Alistair Darling refused to support the EU/IMF/ECB bailout of the euro zone bond market, the euro zone may stand by and do nothing when the UK gets into trouble,” he said.

Fry's warning is particularly pertinent following comments by senior French policymaker Jean-Pierre Jouyet, who today indicated that Britain will be punished for refusing to fully sign up to the trillion dollar bailout of the eurozone, despite pledging €60bn in taxpayer funds.

“The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you. If you don’t want to show solidarity to the eurozone, then let’s see what happens to the United Kingdom,” the head of the French markets regulator told Europe 1 radio.

Anthony Fry added that he expects to see a strengthening of the Euro through consolidation and centralization of fiscal policy in Europe, echoing comments made yesterday by other leading bankers and economists.

“Talk of the euro breaking up is nonsense," Fry said. "What we will get is tighter fiscal cooperation. If Germany is lending money to Spain it will demand tough measures on spending.”

NEW UK GOVERNMENT TO BE INFESTED WITH BANKERS

One in ten new MPs has background in international banking

Steve Watson
Infowars.net
Tuesday, May 11th, 2010

No matter which parties eventually form a coalition to govern in the UK following last week's general election, one thing is for certain - the House of Commons will be infested with bankers.

A report by the PR group The Madano Partnership, highlighted today in the London Telegraph outlines the fact that the number of MPs with a financial services background has increased two fold over the past thirteen years.

One in 10 new MPs have come from a career in investment banking, fund management, or other areas associated with the financial sector, according to the report.

The roll call of MPs includes three former directors of Barclays Bank, a former managing director of JP Morgan, and a former mergers and acquisitions banker at Goldman Sachs.

Former investment bankers and economists at Deutsche Bank, Barings, Warburg, and the previously bailed out Lloyds TSB also hold seats.

Conservative MP Jacob Rees Mogg also previously held management positions at Rothschild and Lloyd George Management in London.

With the impending push to radically reform the banking industry, these are the heavy hitters likely to be in the driving seat when it comes to forming economic policy and tabling financial legislation.

Monday, March 15, 2010

GRANDADDY OF GREEN, JAMES LOVELOCK, WARMS TO ECO-SCEPTICS

From The Sunday Times
March 14, 2010
Grandaddy of green, James Lovelock, warms to eco-sceptics
Charles Clover

Just occasionally you find yourself at an event where there is a sense of history in the air. So it was the other night at the Royal Society, when a small gathering of luminaries turned up to hear that extraordinary nonagenarian, the scientist James Lovelock.

They had all come: David MacKay, chief scientist at the Department of Energy and Climate Change; Michael Green, Lucasian professor of mathematics at Cambridge; Michael Wilson, producer of the James Bond movies; Chris Rapley, director of the Science Museum; and more. You knew why they had answered the Isaac Newton Institute’s invitation. They wanted to learn where one of the most interesting minds in science stood in the climate debate.

Lovelock has been intimately involved in three of the defining environmental controversies of the past 60 years. He invented an instrument that made it possible to detect the presence of toxic pollutants in the fat of Antarctic penguins — at roughly the same time as Rachel Carson wrote Silent Spring, her hugely influential book about pollution. In the 1970s the same instrument, his electron capture detector, was used to detect the presence of chlorofluorocarbons — CFCs — in the atmosphere. Although Lovelock mistakenly pronounced these chemicals as no conceivable toxic hazard, the scientists F Sherwood Rowland and Mario Molina later won the Nobel prize in chemistry for proving they were destroying the ozone layer.

Then, in 1979, Lovelock published the book-length version of his Gaia theory, which postulates that the Earth functions as a kind of super-organism, with millions of species regulating its temperature. Despite initial scepticism from the Darwinists, who refused to believe that individual organisms could act in harmony, the Gaia theory has been widely accepted and now underlies most atmospheric science.

What, I wondered, would be the great man’s view on the latest twists in the atmospheric story — the Climategate emails and the sloppy science revealed in the reports of the Intergovernmental Panel on Climate Change (IPCC)? To my surprise, he immediately professed his admiration for the climate-change sceptics.

“I think you have to accept that the sceptics have kept us sane — some of them, anyway,” he said. “They have been a breath of fresh air. They have kept us from regarding the science of climate change as a religion. It had gone too far that way. There is a role for sceptics in science. They shouldn’t be brushed aside. It is clear that the angel side wasn’t without sin.”

As we were ushered in to dinner, I couldn’t help wrestling with the irony that the so-called “prophet of climate change”, whose Gaia theory is regarded in some quarters as a faith in itself, was actively cheering on those who would knock science from its pedestal.

Lovelock places great emphasis on proof. The climate change projections by the Meteorological Office’s Hadley Centre — a key contributor to the IPCC consensus — should be taken seriously, he said. But he is concerned that the projections are relying on computer models based primarily on atmospheric physics, because models of that kind have let us down before. Similar models, for example, failed to detect the hole in the ozone layer;

it was eventually found by Joe Farman using a spectrometer.

How, asks Lovelock, can we predict the climate 40 years ahead when there is so much that we don’t know? Surely we should base any assumptions on things we can measure, such as a rise in sea levels. After all, surface temperatures go up and down, but the rise in sea levels reflects both melting ice and thermal expansion. The IPCC, he feels, underestimates the extent to which sea levels are rising.

Do mankind’s emissions matter? Yes, they undoubtedly do.

No one should be complacent about the fact that within the next 20 years we’ll have added nearly a trillion tons of carbon to the atmosphere since the industrial revolution. When a geological accident produced a similar carbon rise 55m years ago, it turned up the heat more than 5C. And now? Well, the effect of man-made carbon is unpredictable. Temperatures might go down at first, rather than up, he warns.

How should we be spending our money to prevent possible disaster? In Britain, says Lovelock, we need sea walls and more nuclear power. Heretical stuff, when you consider the vast amount that Europe plans to spend on wind turbines.

“What would you bet will happen this century?” a mathematician asked him. Lovelock predicted a temperature rise in the middle range of current projections — about 1C-2C — which we could live with. Ah, but hadn’t he also said there was a chance that temperature rises could threaten human civilisation within the lifetime of our grandchildren?

He had. In the end, his message was that we should have more respect for uncertainties and learn to live with possibilities rather than striving for the 95% probabilities that climate scientists have been trying to provide. We don’t know what’s going to happen and we don’t know if we can avert disaster — although we should try. His sage advice: enjoy life while you can.

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Monday, January 25, 2010

GENERAL DAVID PETRAEUS: FULL TRANSCRIPT OF INTERVIEW WITH THE TIMES

From The Times January 25, 2010
General Petraeus, head of US Central Command
Deborah Haynes Afghanistan

It seems that the Pakistanis are talking at all levels to Afghan Taleban and President Karzai will be announcing this reconciliation plan for low to mid-level Taleban...

It is really reintegration to be technically accurate.

What are the chances of engagement with the senior Taleban leaders?

I’m not sure I would completely subscribe to the characterisation that the Pakistanis are talking to the Taleban at all levels. What you have are two different endeavours. One is reintegration and that is what we anticipate the Afghan Government to announce as a policy developed in co-ordination certainly with the international community and Isaf elements that are focused on that particular topic. Obviously that’s an important component of any comprehensive approach to a situation such as that in Afghanistan.

In Iraq as you know very well having interviewed me on that topic the Iraqi form of reintegration, of reconciliation with low and mid-level leaders and fighters proved to be an important factor in the reduction of violence and the reconciliation of tens of thousands of individuals who were either actively or tacitly involved with the Sunni insurgent elements that contributed to much of that violence that led to the surge.

In Afghanistan there are every week instances in which Taleban or other insurgent elements come to Afghan or Isaf tactical level leaders and want to talk. In some cases literally want to lay down their weapons and in a number of cases have actually done that in recent months. We think as the combination of additional pressure from the surge of US and other Isaf contributing nations forces takes place, as the additional operations ... are launched, that additional pressure the additional focus that will also allow to develop Afghan security forces, host nation governance and capacity, all of that will provide a number of different incentives for low and mid-level leaders in particular to consider becoming part of the new Afghanistan, part of the solution in the new Afghanistan rather than a continuing part of the problem.

The concept of reconciliation, of talks between senior Afghan officials and senior Taleban or other insurgent leaders, perhaps involving some Pakistani officials as well, is another possibility. Although many observers think that that is probably one for the mid or long term rather than the short term given that many of those leaders will feel that they are resurgent right now rather than under the kind of pressure that might lead them to seriously consider laying down their arms and indeed directing that large insurgent elements pursue reconciliation rather than continued violence.

Mid or long term meaning in months?

Mid or long term. Again it depends on the pace of the campaign plan, the operational tempo, the dynamics of the battlefield if you will but at an operational and strategic level not just at a tactical level.

Senior commanders right up to the very top if they’re willing?

As Secretary Gates observed recently. He noted the possibility of that is probably unlikely given the dynamics at present but I don’t think it is something that anyone rules out. Again that was not an option pursued in Iraq. We certainly never approached the most senior al-Qaeda in Iraq or the most senior Sunni extremist leaders. However there were certainly some fairly high-level insurgent leaders who did indeed reconcile with the Iraqi Government so it is not something that can be ruled out but it is also not something that I would anticipate as they say in the United States: coming soon to a theatre near you.

Another goal from the London conference is a tentative timetable, and I know you don’t like timetables, for the transfer of security of Afghan provinces. What do you think is a realistic timeline for this?

I haven’t heard of a timetable. Nor of discussions of a timetable other than of course what was in the President’s speech about beginning a transition of certain security tasks based on conditions. Conditions meaning enemy situation, Afghan Security Force capacity and capability and so forth. So what there has been focus on however has been to refine the discussion of indeed what those conditions should include, what considerations should be part of discussions about transition and indeed what transition actually means. Is it just the lead for security responsibility or is it transfer of all governance and service and security tasks from Isaf to Afghanistan and again at what level? Is it sub district, district, province, how to go forward with it. There has been a lot of good discussion on that and we’ll see really where the state of those discussions by the London conference because they are still very much, they’re continuing in quite an intensive manner.

Helmand is obviously of particular interest to Britain. With another 10,000 US Marines due to deploy to the province as part of the surge, will the US take control of northern Helmand to free up the British to focus on LKG, Garmsir and Gareshk in the centre?

Well that again has yet to be announced shall we say. Certainly there’s a terrific amount of coordination ongoing both in terms of tactical and operational co-ordination of the conduct of future operations and also co-ordination about literally what additional US forces, US assets in some cases other nations’ assets and how all of those are going to be meshed together as it is currently of course under regional command south and I don’t want to get ahead of Isaf commander nor the intermediate joint commander or for that matter the RC south commander in laying out how it’s envisioned that this will go forward.

So you don’t want to say who is going to be in command of Helmand?

I think that would probably be premature. But there are certainly discussions of that ongoing and then there are discussion understandably about how best to do command and control of what is currently regional command south as you have an influx of a substantial number of additional forces and as you get multiple more brigades just in Helmand province not to mention also of course other forces going into Kandahar and other areas of regional command south.

How many surge forces are already on the ground?

The first two combat battalions are now on the ground in terms of the surge forces those are both marine units and the first of the army ground battalions in now also in the process of deploying in addition to numerous what we call enabler forces. These are engineers who are doing the infrastructure development in addition of a dance of other forces.

The Iraq surge was accompanied by an initial rise in coalition deaths. Do you predict that given we have a surge going on in Afghanistan now this could be Nato’s bloodiest year over there?

Honestly I don’t know. Certainly I have said that it will be tougher before it gets easier as I did also in advance of the surge in Iraq. The circumstances are different. First of all you don’t have a vastly higher level of violence already. The level of violence in Iraq when the surge was launched was several orders of magnitude greater than that in Afghanistan. In December 2006 when the decision was made to conduct the surge into Iraq there were 53 dead bodies every day, every 24 hours on average, in Baghdad alone from sectarian violence there were some others from other categories of violence. The spiral of violence in Iraq, of sectarian violence in particular, had gone nearly out of control.

We are going to have to make sacrifices before things get better?

Again as I have said it will get harder before it gets easier and that will result from offensive operations intended in Helmand among others to take away Taleban sanctuaries and safe havens that they’ve been able to establish over the course of the last two or three years in particular.

Do you have a prediction of when the violence will peak?

The summer fighting season has traditionally been the time when the violence has been highest.

Could this be the last summer of violence? And afterwards you are hoping that we won’t see that again next year?

I think again that would be premature to make that kind of prediction. I have said that I have not assessed that Afghanistan could be turned as quickly as Iraq was turned. That it will be difficult to assemble all the same factors that we were able to bring together in Iraq to reduce the violence as rapidly as was the case, in hindsight at least. It didn’t feel rapid when we lived through it. It took a good six to nine months of very heavy fighting and then the militia battles of March and April of 2008, six months after that. But the reduction in violence did indeed begin and was fairly sharp starting in the late June, early July 2007 timeframe and it really continued on down, it would plateau a bit then continued down further.

There are cycles in Afghanistan and over time what we want to do of course is to drive the peak violence in the summer down and the level of violence in the winter down also but again I think it would be premature to predict that the combination of Isaf and Afghan forces can yet produce the factors that collectively could result in that kind of reduction.

Resolve will be tested?

I think the question is whether or not the combination of Isaf, international community and Afghan efforts can produce demonstrable evidence of progress that gives the publics of the contributing nations, all of them, the kind of sense that was produced over time in Iraq that this endeavour, the objectives of this endeavour can be obtained over time.

What will you be looking for?

Some of the same indicators as we saw in Iraq. Indeed the momentum that the Taleban for example has achieved in recent years can be reversed. That over time the security bubbles can be extended. That the population can be better protected over time. That Afghan forces are developing in a positive manner. That Afghan governmental capacity capability and performance progresses and so on.

You were a fan of British Special Forces in Iraq.

I was, I am and I always will be the biggest fan of BSF wherever they may be and also of British forces in general with whom I’ve been privileged to work in the Balkans, in Iraq and now of course in Afghanistan and a host of other places.

How important a role do British SF play in Afghanistan?

A very important role. They are, they always have been and they continue to be nothing short of terrific. In particular their innovativeness and capacity for independent action continue to be very impressive.

America is committing 30,000 additional forces for Afghanistan. What are you hoping countries like Germany will potentially be sending? What hopes do you have for that?

My understanding is that the latest number that other Isaf contributing nations have already pledged I think it is somewhere around 7,500 and there are hopes certainly that other counties that have not yet officially or publicly made pledges will announce those as well. It is not the role for a US CENTCOM commander. I’ll defer that to my close friend and colleague the Nato supreme allied commander.

Money was a key weapon in Iraq, with the Sons of Iraq programme for example?.

It is important for people to understand that the Sons of Iraq programme initially took off before we announced salaries for the Sons of Iraq. It was truly based out of a desire to maintain security in areas once al-Qaeda and other extremist elements had been cleared from them... Over time there was a desire for compensation, reasonably understandable, and we had the Cerp [Commander's Emergency Response Programme] dollars to do that. In fact for now probably somewhere around nine months all of those Sons of Iraq have been on the Iraqi payroll and it’s now about 50,000 of them who have shifted to the payrolls of various Iraqi ministries.

I understand the pilot scheme in Afghanistan has not been as effective.

There is not for Afghanistan something quite comparable to the Sons of Iraq. There are a number of different initiatives that are being pursued. There is a local defence initiative in which small special forces teams locate with villagers, develop trust and confidence over periods of months and with the approval of the Afghan Government allow certain members of those villages to carry weapons and to augment the security of areas that in some cases is not that well assured by still small Afghan security forces and they then they have the link to a quick reaction force and so forth.

Literally live in the villages with them?

Initially Special Forces will live with them and then overtime they will move to other villages and then again the local defence forces, some of whom may be paid over time but relatively small numbers of those. That is one concept and this is actually ongoing.

When did that start?

Several months ago.

There is the Afghan Population Protection Programme. That has been used in limited form in Wardak and Logar provinces southwest of Kabul really as a short-term measure to add rapidly to the roles that will ultimately be the Ministry of Interior forces. Some local forces who are selected by tribal leaders from those areas and again it is assessed to have had modestly positive results and those forces over time will be incorporated into the Ministry of Interior.

Are they being paid?

Yes, they are paid by the Ministry of Interior.

Then you have the various initial stages of reintegration efforts that are taking place in part just because the situations demand that tactical-level Afghan and Isaf leaders respond to low-level Taleban leaders who literally come in with their hands up and want to lay down their weapons. In those cases local officials are brought into this and there are local arrangements that are brokered even as the formal development of a reintegration programme at the highest levels of the Afghan Government together with the international community is being finalised.

The surge has begun. You were in this position in Iraq, everyone was watching, how do you feel in terms of is it a winnable mission? Can you see a successful end to this?

The surge has begun... General McCrystal has described the situation in a way that I think is accurate and that is serious but doable. There are no illusions about the magnitude of the difficulty. Everyone clearly recognises the magnitude of the difficulty. I have recognised this all the way back in September 2005 when I was asked by then Secretary Rumsfeld to come home after a second tour in Iraq, this is when I was a three-star General, via Afghanistan and do an assessment of the training equipment programme and the situation in Afghanistan, which I did and came back and in reporting that out to him at that time when the level of violence was vastly lower than it has been over the past year, or two, I said that I thought that Afghanistan likely would be the longest campaign in the long war just because of the various factors on the ground and the enormous challenges that reside there. That turned out to be fairly prophetic.

There are no illusions about this being in any stretch of the imagination easy and everyone recognises the difficulty. Having said that everyone also recognises the imperative of doing all that is possible to achieve a hugely important mission, one that is of enormous importance to all our countries and that is to ensure that Afghanistan does not become once again a sanctuary or a safe haven for transnational extremist elements like al-Qaeda. It was in Kandahar that 9/11 attacks were planned. It was in training camps in eastern Afghanistan where the initial preparation of the attackers was carried out before they went to Hamburg and flights schools in the US. It is important to recall the seriousness of the mission and why it is that we are in Afghanistan in the first place and why we are still there after years and years of hard work and sacrifice that have passed.



Iraq

How worried are you that this furore over the decision to blacklist several hundred candidates could trigger fresh unrest over there and delay the US withdrawal plans?

I’m considerably much less worried than I was say last weekend when this was all really appearing that it actually could boil over and result in a reversal of the effect of two and an half years of reconciliation among different groups. It appears however in the last 48 to 72 hours that Iraqi leaders have really gripped this issue.

It turns out now that each party has at least double-digit numbers of individuals on this particular list of over 500 names and that it is reportedly 55 per cent or so Shia and 45 per cent or so Sunni. So if it ever was as was reported a predominately Sunni list and predominately focused on sidelining Sunni candidates that is not the case now and it appears there is going to be, as has been the case in Iraq on a number of previous occasions when there has been quite considerable political drama, that Iraqi leaders will resolve the issue without unhinging and undoing again two and a half years of very hard work at reconciling all of the factions inside the new Iraq.

So no panic.

No panic.

No timetable changes.

No timetable changes. Still a weather eye though at this issue and a number of other issues and I think residual concern from this particular issue by Iraqi leaders about how leaders of a previous organisation that was supposed to have been defunct by the legislation that established the accountability and justice commission that replaced the former de-Baathification committee, those leaders seemingly hijacking the new organisation without having been confirmed as the leadership of it and being manipulated by reportedly the Iranian Quds force.

You said that US intelligence believes that Peter Moore spent some time in Iran but Britain’s FCO insists there is no evidence of this. Who is mistaken?

We’ll throw it back to the intelligence community and let them tell us what they think.

You haven’t heard any different? You still think he was held in Iran?

I have heard no different information.

Do you know how long?

I do not. No.



Yemen

How worried are you that it could become the next Afghanistan in terms of providing a safe haven for al-Qaeda to launch global attacks.

A number of us have been focused on Yemen for well over two years.

From the time when we were examining how foreign fighters were being trained and then how foreign fighter facilitators were operating who enabled foreign fighters to come into Iraq through Syria and many different roads lead to what was then termed al-Qaeda in Yemen and this past year was franchised by the al-Qaeda senior leadership as al-Qaeda in the Arabia Peninsular.

In 2006 there was a very important prison break in which the current leader of al-Qaeda in the Arabian Peninsular and some 20 to 25 other important al-Qaeda members were able to escape from prison in Yemen. We knew even further back that al-Qaeda had a presence in Yemen. It tried to sink the Cole, did do considerable damage to it and have carried out various attacks over the years on various Western targets and Yemeni governmental targets again in various locations in Yemen.

And we saw again links to al-Qaeda in Yemen that included foreign fighter facilitators, the establishment of training camps and a variety of different communications all traced back to Yemen that helped facilitate the flow of foreign fighters from various countries in the greater region into Damascus and then on into Iraq where a number of them were blowing themselves up or providing expertise in explosives or other tactics, techniques and procedures being practiced by al-Qaeda in Iraq.

At that time we were focused on it in 2007 there were over 120 foreign fighters per month entering Iraq. That flow has now been reduced to under 10 a month by the actions that we and our Iraqi partners and some tremendous UK Special Operations forces took together inside Iraq and then by actions that regional partners took to make it much more difficult for military-aged males to fly from their countries to Damascus on a one-way plane ticket, for example.

And then also a number of different operations that were carried out through co-ordinated intelligence and other activities as a result of the focus that we were all taking collectively on the effort to reduce that flow of fighters into Iraq. So coming into this job in late October 2008 I announced right away that we were going to focus more attention and resources on Yemen. Made an initial trip to Yemen shortly after taking command. We developed in concert with the embassy in Yemen and with intelligence organisations and with the State Department a military campaign plan for Yemen that I approved in late April of 2009.

Made another trip to Yemen in July that has now been acknowledged. That was a very, very positive trip and we launched the efforts to expand our assistance to certain Yemeni forces, expand our intelligence sharing, and development efforts and all of that led to the ability to enable the actions that have been taken against al-Qaeda in the Arabian Peninsula over the course of the past couple of months. The most well known of which were various strikes on December 17, December 24 and a variety of other actions that have taken place in which cumulatively two training camps have been destroyed, three suicide bombers were killed, the fourth one who was with them was wounded and captured with his suicide vest still on by the Yemeni Sensitive Site Exploitation Team, one quite senior al-Qaeda in the Arabian Peninsular leader was killed, others have been wounded or very nearly missed and a degree of disruption has been inflicted on al-Qaeda in the Arabian Peninsular. But certainly activities continue, threat streams continue and efforts to plan attacks in Yemen and elsewhere in the world continue.

You want to double the military assistance given to Yemen. In what form will this be? Training? Drones?

The large ticket items that were in programmes that are part of the defence budget that were proved by congress and signed by the President are for items of equipment, such as helicopters, some coast guard vessels and then a variety of other less expensive items of military equipment and then some training, education.

What about airstrikes and drone attacks. Will that have to happen given the threat?

Well the Yemeni forces in fact carried out an air strike most recently two or three days ago. It is possible that those Yemeni activities could continue.

Can you envisage any further US involvement in terms of troops there, any deployment?

Obviously it depends on what the Yemeni leadership wants. They have very clearly ruled out the possibility of US forces being involved in ground combat operations and have done so publicly and that is not in the realm of the possible. But again a variety of different training and assistance activities based on a schedule that we agreed mutually is certainly in the realm of the possible and indeed the kind of activities that we carry on with the majority of the countries in the central command area of responsibility.



Iran

You told CNN that the US has contingency plans to address...

No, actually what I told Christiane Amanpour is that it would literally be irresponsible if Central Command was not considering a variety of contingencies including those involving Iran and planning for those contingencies.

What are the contingency plans for Iran?

Well would you like me to spell all of them out for you.

Well, yes.

[Laughs] Again it wouldn’t be productive I don’t think to go into any kind of discussion beyond really the answer that I gave to Christiane. Nice try though.

AFGHANISTAN WILL TAKE "LONGER" TO TACKLE THAN IRAQ, GENERAL DAVID PETRAEUS SAYS

From The Times January 25, 2010

Deborah Haynes, Defence Editor The new American-led surge in Afghanistan will take longer to fight the insurgency than a similar injection of force in Iraq three years ago when violence fell sharply within months, the top US general in the region told The Times.

General David Petraeus, the head of Central Command, also warned that the fight in Helmand province, Afghanistan, where British and US forces are based, as well other areas, would become even tougher before the situation improved.

Frontline offensives will run alongside initiatives to reach out to Taleban elements. When the time was right, General Petraeus said, there was a possibility that Afghan officials would hold reconciliation talks with senior Taleban and other insurgent leaders, perhaps also involving Pakistan.

In 2005, the commander predicted that Afghanistan would be the longest campaign in the war on terror. “That turned out to be fairly prophetic,” he said, speaking at his headquarters in Tampa, Florida.

“It will get harder before it gets easier and that will result from offensive operations intended in Helmand [province] and others to take away Taleban sanctuaries and safe havens.”

The first two Marine battalions, which are part of a surge of 30,000 extra US troops announced by President Obama last month, are already on the ground in Helmand and an Army battalion is in the process of deploying. The majority of US troops are due to be in place by the end of August, along with several thousand extra soldiers from other countries, including Britain.

Violence in Afghanistan typically increases over the summer months and General Petraeus forecast that this year would again be bloody. He also said that it was premature to make predictions about whether the situation would improve by 2011.

“I have not assessed that Afghanistan could be turned as quickly as Iraq was turned — that it will be difficult to assemble all the same factors that we were able to bring together in Iraq to reduce the violence as rapidly,” said the general, who commanded US-led forces in Iraq during the surge.

George Bush, then President, sent 30,000 additional troops to the country in the first half of 2007 when it was on the brink of civil war. They pushed into no-go areas in and around Baghdad, killing or capturing al-Qaeda and other Sunni fighters as well as convincing insurgents — dismayed by the sectarian killings — to switch sides in return for money. Violence fell dramatically within nine months of the first troops being deployed.

The US military and other Nato forces in Afghanistan are trying to use public anger over an increasing number of attacks to prompt Afghans to repel the Taleban in the same way that Iraqis rejected al-Qaeda, although the level of civilian casualties is much lower than it was in Iraq.

There are also attempts to create local, anti-Taleban militias and to broker deals with low-level Taleban elements, willing to switch allegiance.

Every week Taleban fighters approach US and other Nato or Afghan forces wanting to talk and on occasion lay down their weapons, General Petraeus said.

“In those cases local officials are brought into this and there are local arrangements that are brokered even as the formal development of a reintegration programme at the highest level of the Afghan Government together with the international community is being finalised.”

He was referring to a plan expected to be presented by President Karzai at the London conference on Afghanistan this week.

As for higher up the Taleban chain of command, General Petraeus said: “The concept of reconciliation, of talks between senior Afghan officials and senior Taleban or other insurgent leaders, perhaps involving some Pakistani officials as well, is another possibility.”

He said, however, that many observers believed this would take time.

Asked whether it would include the top leadership, he said: “It’s not something that can be ruled out but it’s also not something that I would anticipate, as they say in the United States, ‘Coming soon to a theatre near you’.”

As head of Central Command, General Petraeus is also responsible for American security interests in 19 other nations through the Arabian Gulf region and into Central Asia. Also high on his agenda is Yemen, where al-Qaeda in the Arabian Peninsula is based.

He welcomed a series of strikes by the Yemeni Government over the past two months that he said had destroyed two training camps, killed three would-be suicide bombers and resulted in the capture of a fourth.

“A degree of disruption has been inflicted on al-Qaeda in the Arabian Peninsula, but certainly activities continue, threat streams continue and efforts to plan attacks in Yemen and elsewhere in the world continue.”

The US is planning to double its security assistance to the impoverished nation next year to $150 million (£93 million). The aid will include helicopters, some coastguard vessels as well as training.

General Petraeus said that there were no plans for American ground forces to deploy to Yemen but indicated that the two countries would continue to work closely together to tackle the issue.

“A variety of different training and assistance activities based on a schedule that we agreed mutually is certainly in the realm of the possible.”

In a sign of strong relations between America and Yemen, a curved sword in a jewelled sheath, which was presented to General Petraeus’s predecessor, Admiral William Fallon by the Yemeni President in July 2007, sits in a cabinet of gifts received by the head of Central Command from various dignitaries across the region.

BRITISH TROOPS FACE FIVE MORE YEARS IN HELMAND

From The Times January 25, 2010

British soldiers of 3 Rifles on patrol with the Afghan National Army near Sangin, Helmand Province
Tom Coghlan, Defence Correspondent, and Jerome Starkey in Kabul

British troops will have to fight the Taleban for another five years, according to a leaked draft of the communiqué that will conclude the London conference on Afghanistan this week.

Participating governments are also expected to agree to bribes totalling hundreds of millions of pounds which will be paid to leading insurgents in the hope that they will stop fighting.

The controversial plan is likely to anger relatives of British soldiers killed by the Taleban in Helmand province. Last night the MoD said that a 251st serviceman had died, while the most senior US commander in the war zone predicted that the violence would get worse before it got better.

Gordon Brown, the host of the summit which begins on Thursday, will present the plan for stabilising Afghanistan. It foresees a bloody endgame, with Afghan forces only gradually taking on their rightful role over several years.

The draft closing statement lays down a timeline which is significantly less optimistic than that envisaged by President Obama, who has suggested that US forces would aim to begin drawing down troops from mid-2011.

It commits Afghan forces to “taking the lead and conducting the majority of operations in the insecure areas of Afghanistan within three years and taking responsibility for physical security within five years”.

“Providing conditions are met”, it adds, some of the more stable regions of the country may be put under the control of Afghan security forces at the end of this year or in early 2011, with Western troops providing support.

Yesterday Bob Ainsworth, the Defence Secretary, acknowledged that the transition to a more peaceful Afghanistan would be a lengthy process. “We’ll be able to hand over parts of Afghanistan long before we hand over other parts,” he said.

A similar note of caution was struck by the top US general, David Petraeus, who told The Times in an interview that fighting in Helmand and elsewhere in the south could intensify this summer. He warned that the particular combination of factors that produced a decisive drop in violence following the 2007 Iraq surge were unlikely to be replicated as quickly or dramatically in Afghanistan.

The centrepiece of the London conference, attended by countries with troops in Afghanistan, will be the reconciliation plan. It promises “an honourable place in society” to those who cut their ties with “al-Qaeda and other terrorist groups”. It will be underwritten by a “Peace and Reintegration Trust Fund” over the next three years.

The Times has learnt that the US, Britain and Japan are the principal donors to the scheme, the details of which were thrashed out in a meeting involving diplomats from 20 countries in Abu Dhabi two weeks ago.

“The hope is the Afghans will present the plan in London. Then the Americans, the British and the Japanese will open up the purse strings and bankroll it to the tune of hundreds of millions of dollars,” said a senior official briefed on the discussions.

The Government will seek to justify the London plan by arguing that peace in Afghanistan requires all sides to be involved in the process. “When people say to me, ‘Should the Afghan Government be talking to the Taleban?’, I have a simple answer: ‘Yes, they should’,” David Miliband, the Foreign Secretary, told the BBC.

Saturday, January 23, 2010

FOREIGN-OWNED HERALD SUN REPORTS ON UP-COMING BRITISH FALSE FLAG OP

Britain raises terror threat level to severe Alice Ritchie AFP From: AAP January 23, 2010 4:54PM

BRITAIN has raised its terror threat level from substantial to severe with the Home Secretary warning that an attack was "highly likely".
The change comes just weeks after a failed plane bombing in the United States, and days ahead of two major international conferences on Yemen and Afghanistan in London.

"The Joint Terrorism Analysis Centre has today raised the threat to the UK from international terrorism from substantial to severe," Home Secretary Alan Johnson said early today.

"This means that a terrorist attack is highly likely, but I should stress that there is no intelligence to suggest than an attack is imminent."

In a television statement shortly afterwards, Mr Johnson refused to say whether the change in the threat level - to the fourth in a five-level scale - was linked to the failed Detroit plane bombing on December 25.

"We never say what the intelligence is and it would be pretty daft of us to do that," he said, adding: "It shouldn't be thought to be linked to Detroit or anywhere else for that matter."

He said the JTAC, a unit within the MI5 domestic intelligence agency, "looks at all factors and no one should draw any assumptions from this".

The increased threat level meant that Britain would put "more resources in, we heighten the state of vigilance", he said.

In a statement issued by his office, Mr Johnson insisted the threat level, which has been made public on MI5's website since August 2006, was kept "under constant review".

The terrorism analysis centre "makes its judgments based on a broad range of factors, including the intent and capabilities of international terrorist groups in the UK and overseas", he said.

Mr Johnson said Britain continued to face a "real and serious threat" from international terrorism and urged the public to remain vigilant and report any suspicious activities to the authorities.

The threat level was last at severe on July 20, 2009, when it was downgraded to "substantial", suggesting an attack remains a "strong possibility".

Prime Minister Gordon Brown during the week reiterated the threats Britain faced as he unveiled new security measures sparked by the attempt to blow up the US passenger jet flying into Detroit, which has been claimed by al-Qaeda.

"We know that a number of terrorist cells are actively trying to attack Britain and other countries," he told the House of Commons.

Mr Brown said the "crucible of terrorism" was based on the Afghan-Pakistan border, but noted how the failed Detroit attack also highlighted the threat posed by militants in Yemen.

The alleged bomber, Umar Farouk Abdulmutallab, had reportedly trained in Yemen. He had also studied in London for three years as an undergraduate.

Britain has organised a meeting to strengthen international support for Yemen in its efforts against al-Qaeda, to take place in London this week before a high-level conference on Afghanistan.

There have been numerous attempted attacks on Britain in recent years, as well as the successful one on July 7, 2005, when four suicide bombers attacked the London transport system, killing themselves and 52 others.

Since the threat levels have been made public, they have twice briefly been raised to the top "critical" level, meaning an attack was imminent.

The first time was on August 10, 2006, after a series of arrests linked to a plot to down trans-Atlantic aircraft, and the second on June 30, 2007, at the time of failed attacks in London and Glasgow.

The two lower threat levels are "moderate", indicating an attack is possible but not likely, and "low", meaning that an attack is considered unlikely.

Tuesday, December 15, 2009

BLAIR GIVES "EVIDENCE" ON IRAQ OILVASION IN SECRET

The Independent
December 13, 2009
Untouchable: Blair to give Iraq War evidence in secret
By Jane Merrick and Brian Brady
Former PM was happy to discuss invasion with Fern Britton on TV show - but the Chilcot inquiry will hear his crucial testimony behind closed doors

Key parts of Tony Blair's evidence to the Chilcot inquiry into the Iraq War will be held in secret, sources close to the hearings revealed last night.

His conversations with President George Bush when he was prime minister, and crucial details of the decision-making process that led Britain into war, will fall under the scope of national security and the protection of Britain's relations with the US.

But there are also suggestions by well-placed sources that anything "interesting" will also be shrouded in secrecy, leaving his public appearance containing little more than is already known.

The revelation will dash hopes that Mr Blair will finally detail in public why he committed British troops to the disastrous military invasion on the basis of flimsy intelligence.

The Liberal Democrat leader Nick Clegg last night condemned the move, saying if a significant proportion of Mr Blair's evidence were held in private then the public would "rightly conclude that the inquiry is simply too weak to give us the truth".

It followed Mr Blair's extraordinary admission to the TV presenter Fern Britton this weekend that he would have gone to war even if he had known Saddam Hussein had no weapons of mass destruction.

He would have deployed "different arguments" to remove Saddam, Mr Blair said - undermining his long-held case that Saddam needed to be toppled because of the threat of WMD.

It will be seen as supremely ironic that Mr Blair made the confession in the cosy surroundings of a documentary about his religious beliefs, in Fern Britton Meets... to be broadcast on BBC1 today, yet the public will be denied the chance to see any difficult questioning of how he has changed his justification for war over the past seven years.

All of the evidence held behind closed doors is expected to be redacted from the Chilcot panel's final report on the war.

There are already concerns that Sir John Chilcot and his four fellow panellists have given the 27 witnesses who have so far appeared - mainly senior Foreign Office mandarins - an easy ride over their role in the war.

The former MI6 chief Sir John Scarlett, in evidence last week, distanced himself from the "overtly political" foreword to the September 2002 Downing Street dossier. Yet the panel failed to ask why it was that Mr Blair and Alastair Campbell were able to amend the document he was in charge of. Sir John will also give evidence in private.

The inquiry adjourns for the Christmas break this week. Mr Blair will appear in public in the new year, followed by a private session.

The IoS revealed earlier this year that Mr Blair lobbied Gordon Brown, through the Cabinet Secretary Sir Gus O'Donnell, for the inquiry to be held in private to prevent it turning into a "show trial".

After widespread uproar, the move was blocked and it was announced that all evidence would be public and televised. Yet a source close to the inquiry said yesterday that the "interesting" aspects of Mr Blair's evidence will still be heard behind closed doors.

The source said: "Anyone who thinks the public will have their day in court with Blair is wrong."

It is thought the move arose from a mutual agreement. Whitehall frequently uses national security as a reason to withhold documents from the public. The Freedom of Information Act also blocks the release of details where the effects of disclosure could damage the UK's relations with any other state or international organisation.

A spokesman for the inquiry said: Mr Blair would be appearing "very much in public". He added: "We have said right from the start that he will be a key figure in the inquiry. Mr Blair has said that he is ready and willing to give evidence in public."

Mr Clegg said last night: "It would be wholly unacceptable for any of Blair's testimony to be held in private, except that which could directly compromise national security. Tony Blair's breathtaking cynicism in stating that he would have found any old excuse to go to war simply underlines how vital it is that we hear his testimony in public.

"It is highly ironic that he is willing to speak publicly to Fern Britton but not to the inquiry set up to investigate the Iraq War."

Another source with knowledge of the inquiry said it was clear the "heavy stuff" was being saved for behind closed doors.

Hans Blix, head of the UN weapons inspectorate in 2003, said that Mr Blair's confession to Fern Britton had left a "strong impression of a lack of sincerity", adding that the WMD argument was a "figleaf".
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