Monday, June 30, 2008

Oil price surge adds fuel to truckers' ire

6.15pm BST update

Terry Macalister
guardian.co.uk, Monday June 30, 2008
Article history


The price of oil hit a new record of nearly $144 a barrel today threatening to put further pressure on pump prices ahead of the first fuel price protest officially backed by the Road Haulage Association.

The value of sweet US crude for August delivery rose by more than $3 in New York to $142.99 while North Sea Brent crude futures reached $143.99.

The latest spike in oil prices was blamed on a mixture of rising political tension between Iran and Israel and further expected falls in the value of the dollar against which crude is often used as a hedge.

Traders have been unnerved that Middle East oil supplies could be disrupted after Iran's Revolutionary Guards threatened to impose restrictions on shipping in the Gulf - through which 40% of the world's oil is exported - if Israel launches an attack.

"The main factors behind the rise today are the US dollar remains fragile and geopolitical tensions, particularly surrounding Iran," said David Moore, a commodity strategist at the Commonwealth Bank of Australia. "That's unsettling for the oil market."

The European Central Bank may raise interest rates at its next meeting on Thursday, a move that would help strengthen the euro against the dollar, Moore added.

A survey in the US, meanwhile, showed that prices at the pump continued to rise, with the national average for gasoline at $4.086 a gallon. The previous record of $4.08 was reached on June 16 while petrol and diesel prices in Britain have also been soaring.

BP said the average price of its UK forecourt diesel was now 133.5p a litre - compared with 98.2p a year ago - while unleaded petrol now cost 120.3p compared with 97.2p a year ago.

The Road Haulage Association, the official truckers' lobby group, said it was supporting a protest planned for central London on Wednesday. Kate Gibbs, a spokeswoman for the RHA, said the organisation could no longer stand by because the situation for its members had become an "absolute nightmare".

Lorries from all parts of the country are to meet on the M40 motorway and drive under police escort to Westminster alongside a foot lobby of parliament.

Andy Boyle, a road haulier himself and the RHA's national chairman said: "Our industry is being driven out of business. It is madness to insist on charging the highest level of fuel duty in the European Union on top of a world (oil) price that has rocketed."

Meanwhile the heads of some of the world's biggest oil companies countered Opec claims that speculators were driving high oil prices, instead blaming a dearth of new supplies.

The chief executives of BP, Shell and Spain's Repsol told the oil industry's biggest gathering in three years that restrictions on where they can invest and high taxes meant they could not help boost supplies as much as they might.

BP's CEO Tony Hayward said the argument that financial investors buying oil futures were behind a four-year rally that pushed oil prices to new records above $143 a barrel on Monday was a "myth".

He said the problem was a failure of supply growth to match demand growth. "Supply is not responding adequately to rising demand," he told thousands of delegates at the World Petroleum Congress.


June 30, 2008

Congressional leaders agreed to a request from President Bush last year to fund a major escalation of covert operations against Iran aimed at destabilizing Iran’s leadership, according to a new article by veteran investigative journalist Seymour Hersh in the New Yorker magazine. The operations were set out in a highly classified Presidential Finding signed by Bush which, by law, must be made known to Democratic and Republican leaders. The plan allowed up to $400 million in covert spending for activities ranging from supporting dissident groups to spying on Iran’s nuclear program. Hersh joins us from Washington DC.

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Congressional leaders agreed to a request from President Bush last year to fund a major escalation of covert operations against Iran aimed at destabilizing Iran’s leadership. This according to a new article by veteran investigative journalist Seymour Hersh in the New Yorker magazine.
The operations were set out in a highly classified Presidential Finding signed by Bush which, by law, must be made known to Democratic and Republican House and Senate leaders and ranking members of the intelligence committees. The plan allowed up to $400 million in covert spending for activities ranging from supporting dissident groups to spying on Iran’s nuclear program.
According to Hersh, US Special Forces have been conducting cross-border operations from southern Iraq since last year. These have included seizing members of the Iranian Revolutionary Guard, and taking them to Iraq for interrogation, and the pursuit of so-called “high-value targets” who may be captured or killed.
While covert operations against Iran are not new, Hersh writes that the scale and the scope of the operations in Iran, which involve the CIA and the Joint Special Operations Command, have now been significantly expanded.
Seymour Hersh is a Pulitzer prize-winning journalist. He joins us from Washington DC.
Seymour Hersh, Pulitzer Prize-winning investigative journalist for the New Yorker.




Preparing the Battlefield

Annals of National Security

The Bush Administration steps up its secret moves against Iran.
by Seymour M. Hersh July 7, 2008
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Operations outside the knowledge and control of commanders have eroded “the coherence of military strategy,” one general says.
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Audio: Seymour M. Hersh talks about the White House and Iran.
Keywords
Iran;
Bush, George W. (Pres.) (43rd);
Foreign Policy;
Presidential Findings;
Covert Operations;
Fallon, William (Admiral);
Congressional Oversight
L ate last year, Congress agreed to a request from President Bush to fund a major escalation of covert operations against Iran, according to current and former military, intelligence, and congressional sources. These operations, for which the President sought up to four hundred million dollars, were described in a Presidential Finding signed by Bush, and are designed to destabilize the country’s religious leadership. The covert activities involve support of the minority Ahwazi Arab and Baluchi groups and other dissident organizations. They also include gathering intelligence about Iran’s suspected nuclear-weapons program.
Clandestine operations against Iran are not new. United States Special Operations Forces have been conducting cross-border operations from southern Iraq, with Presidential authorization, since last year. These have included seizing members of Al Quds, the commando arm of the Iranian Revolutionary Guard, and taking them to Iraq for interrogation, and the pursuit of “high-value targets” in the President’s war on terror, who may be captured or killed. But the scale and the scope of the operations in Iran, which involve the Central Intelligence Agency and the Joint Special Operations Command (JSOC), have now been significantly expanded, according to the current and former officials. Many of these activities are not specified in the new Finding, and some congressional leaders have had serious questions about their nature.
Under federal law, a Presidential Finding, which is highly classified, must be issued when a covert intelligence operation gets under way and, at a minimum, must be made known to Democratic and Republican leaders in the House and the Senate and to the ranking members of their respective intelligence committees—the so-called Gang of Eight. Money for the operation can then be reprogrammed from previous appropriations, as needed, by the relevant congressional committees, which also can be briefed.
“The Finding was focussed on undermining Iran’s nuclear ambitions and trying to undermine the government through regime change,” a person familiar with its contents said, and involved “working with opposition groups and passing money.” The Finding provided for a whole new range of activities in southern Iran and in the areas, in the east, where Baluchi political opposition is strong, he said.
Although some legislators were troubled by aspects of the Finding, and “there was a significant amount of high-level discussion” about it, according to the source familiar with it, the funding for the escalation was approved. In other words, some members of the Democratic leadership—Congress has been under Democratic control since the 2006 elections—were willing, in secret, to go along with the Administration in expanding covert activities directed at Iran, while the Party’s presumptive candidate for President, Barack Obama, has said that he favors direct talks and diplomacy.
The request for funding came in the same period in which the Administration was coming to terms with a National Intelligence Estimate, released in December, that concluded that Iran had halted its work on nuclear weapons in 2003. The Administration downplayed the significance of the N.I.E., and, while saying that it was committed to diplomacy, continued to emphasize that urgent action was essential to counter the Iranian nuclear threat. President Bush questioned the N.I.E.’s conclusions, and senior national-security officials, including Secretary of Defense Robert Gates and Secretary of State Condoleezza Rice, made similar statements. (So did Senator John McCain, the presumptive Republican Presidential nominee.) Meanwhile, the Administration also revived charges that the Iranian leadership has been involved in the killing of American soldiers in Iraq: both directly, by dispatching commando units into Iraq, and indirectly, by supplying materials used for roadside bombs and other lethal goods. (There have been questions about the accuracy of the claims; the Times, among others, has reported that “significant uncertainties remain about the extent of that involvement.”)
Military and civilian leaders in the Pentagon share the White House’s concern about Iran’s nuclear ambitions, but there is disagreement about whether a military strike is the right solution. Some Pentagon officials believe, as they have let Congress and the media know, that bombing Iran is not a viable response to the nuclear-proliferation issue, and that more diplomacy is necessary.
A Democratic senator told me that, late last year, in an off-the-record lunch meeting, Secretary of Defense Gates met with the Democratic caucus in the Senate. (Such meetings are held regularly.) Gates warned of the consequences if the Bush Administration staged a preëmptive strike on Iran, saying, as the senator recalled, “We’ll create generations of jihadists, and our grandchildren will be battling our enemies here in America.” Gates’s comments stunned the Democrats at the lunch, and another senator asked whether Gates was speaking for Bush and Vice-President Dick Cheney. Gates’s answer, the senator told me, was “Let’s just say that I’m here speaking for myself.” (A spokesman for Gates confirmed that he discussed the consequences of a strike at the meeting, but would not address what he said, other than to dispute the senator’s characterization.)
The Joint Chiefs of Staff, whose chairman is Admiral Mike Mullen, were “pushing back very hard” against White House pressure to undertake a military strike against Iran, the person familiar with the Finding told me. Similarly, a Pentagon consultant who is involved in the war on terror said that “at least ten senior flag and general officers, including combatant commanders”—the four-star officers who direct military operations around the world—“have weighed in on that issue.”
The most outspoken of those officers is Admiral William Fallon, who until recently was the head of U.S. Central Command, and thus in charge of American forces in Iraq and Afghanistan. In March, Fallon resigned under pressure, after giving a series of interviews stating his reservations about an armed attack on Iran. For example, late last year he told the Financial Times that the “real objective” of U.S. policy was to change the Iranians’ behavior, and that “attacking them as a means to get to that spot strikes me as being not the first choice.”
Admiral Fallon acknowledged, when I spoke to him in June, that he had heard that there were people in the White House who were upset by his public statements. “Too many people believe you have to be either for or against the Iranians,” he told me. “Let’s get serious. Eighty million people live there, and everyone’s an individual. The idea that they’re only one way or another is nonsense.”
When it came to the Iraq war, Fallon said, “Did I bitch about some of the things that were being proposed? You bet. Some of them were very stupid.”
The Democratic leadership’s agreement to commit hundreds of millions of dollars for more secret operations in Iran was remarkable, given the general concerns of officials like Gates, Fallon, and many others. “The oversight process has not kept pace—it’s been coöpted” by the Administration, the person familiar with the contents of the Finding said. “The process is broken, and this is dangerous stuff we’re authorizing.”
Senior Democrats in Congress told me that they had concerns about the possibility that their understanding of what the new operations entail differs from the White House’s. One issue has to do with a reference in the Finding, the person familiar with it recalled, to potential defensive lethal action by U.S. operatives in Iran. (In early May, the journalist Andrew Cockburn published elements of the Finding in Counterpunch, a newsletter and online magazine.)
The language was inserted into the Finding at the urging of the C.I.A., a former senior intelligence official said. The covert operations set forth in the Finding essentially run parallel to those of a secret military task force, now operating in Iran, that is under the control of JSOC. Under the Bush Administration’s interpretation of the law, clandestine military activities, unlike covert C.I.A. operations, do not need to be depicted in a Finding, because the President has a constitutional right to command combat forces in the field without congressional interference. But the borders between operations are not always clear: in Iran, C.I.A. agents and regional assets have the language skills and the local knowledge to make contacts for the JSOC operatives, and have been working with them to direct personnel, matériel, and money into Iran from an obscure base in western Afghanistan. As a result, Congress has been given only a partial view of how the money it authorized may be used. One of JSOC’s task-force missions, the pursuit of “high-value targets,” was not directly addressed in the Finding. There is a growing realization among some legislators that the Bush Administration, in recent years, has conflated what is an intelligence operation and what is a military one in order to avoid fully informing Congress about what it is doing.
“This is a big deal,” the person familiar with the Finding said. “The C.I.A. needed the Finding to do its traditional stuff, but the Finding does not apply to JSOC. The President signed an Executive Order after September 11th giving the Pentagon license to do things that it had never been able to do before without notifying Congress. The claim was that the military was ‘preparing the battle space,’ and by using that term they were able to circumvent congressional oversight. Everything is justified in terms of fighting the global war on terror.” He added, “The Administration has been fuzzing the lines; there used to be a shade of gray”—between operations that had to be briefed to the senior congressional leadership and those which did not—“but now it’s a shade of mush.”
“The agency says we’re not going to get in the position of helping to kill people without a Finding,” the former senior intelligence official told me. He was referring to the legal threat confronting some agency operatives for their involvement in the rendition and alleged torture of suspects in the war on terror. “This drove the military people up the wall,” he said. As far as the C.I.A. was concerned, the former senior intelligence official said, “the over-all authorization includes killing, but it’s not as though that’s what they’re setting out to do. It’s about gathering information, enlisting support.” The Finding sent to Congress was a compromise, providing legal cover for the C.I.A. while referring to the use of lethal force in ambiguous terms.
The defensive-lethal language led some Democrats, according to congressional sources familiar with their views, to call in the director of the C.I.A., Air Force General Michael V. Hayden, for a special briefing. Hayden reassured the legislators that the language did nothing more than provide authority for Special Forces operatives on the ground in Iran to shoot their way out if they faced capture or harm.
The legislators were far from convinced. One congressman subsequently wrote a personal letter to President Bush insisting that “no lethal action, period” had been authorized within Iran’s borders. As of June, he had received no answer.
Members of Congress have expressed skepticism in the past about the information provided by the White House. On March 15, 2005, David Obey, then the ranking Democrat on the Republican-led House Appropriations Committee, announced that he was putting aside an amendment that he had intended to offer that day, and that would have cut off all funding for national-intelligence programs unless the President agreed to keep Congress fully informed about clandestine military activities undertaken in the war on terror. He had changed his mind, he said, because the White House promised better coöperation. “The Executive Branch understands that we are not trying to dictate what they do,” he said in a floor speech at the time. “We are simply trying to see to it that what they do is consistent with American values and will not get the country in trouble.”
Obey declined to comment on the specifics of the operations in Iran, but he did tell me that the White House reneged on its promise to consult more fully with Congress. He said, “I suspect there’s something going on, but I don’t know what to believe. Cheney has always wanted to go after Iran, and if he had more time he’d find a way to do it. We still don’t get enough information from the agencies, and I have very little confidence that they give us information on the edge.”
None of the four Democrats in the Gang of Eight—Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi, Senate Intelligence Committee chairman John D. Rockefeller IV, and House Intelligence Committee chairman Silvestre Reyes—would comment on the Finding, with some noting that it was highly classified. An aide to one member of the Democratic leadership responded, on his behalf, by pointing to the limitations of the Gang of Eight process. The notification of a Finding, the aide said, “is just that—notification, and not a sign-off on activities. Proper oversight of ongoing intelligence activities is done by fully briefing the members of the intelligence committee.” However, Congress does have the means to challenge the White House once it has been sent a Finding. It has the power to withhold funding for any government operation. The members of the House and Senate Democratic leadership who have access to the Finding can also, if they choose to do so, and if they have shared concerns, come up with ways to exert their influence on Administration policy. (A spokesman for the C.I.A. said, “As a rule, we don’t comment one way or the other on allegations of covert activities or purported findings.” The White House also declined to comment.)
A member of the House Appropriations Committee acknowledged that, even with a Democratic victory in November, “it will take another year before we get the intelligence activities under control.” He went on, “We control the money and they can’t do anything without the money. Money is what it’s all about. But I’m very leery of this Administration.” He added, “This Administration has been so secretive.”
One irony of Admiral Fallon’s departure is that he was, in many areas, in agreement with President Bush on the threat posed by Iran. They had a good working relationship, Fallon told me, and, when he ran CENTCOM, were in regular communication. On March 4th, a week before his resignation, Fallon testified before the Senate Armed Services Committee, saying that he was “encouraged” about the situations in Iraq and Afghanistan. Regarding the role played by Iran’s leaders, he said, “They’ve been absolutely unhelpful, very damaging, and I absolutely don’t condone any of their activities. And I have yet to see anything since I’ve been in this job in the way of a public action by Iran that’s been at all helpful in this region.”
Fallon made it clear in our conversations that he considered it inappropriate to comment publicly about the President, the Vice-President, or Special Operations. But he said he had heard that people in the White House had been “struggling” with his views on Iran. “When I arrived at CENTCOM, the Iranians were funding every entity inside Iraq. It was in their interest to get us out, and so they decided to kill as many Americans as they could. And why not? They didn’t know who’d come out ahead, but they wanted us out. I decided that I couldn’t resolve the situation in Iraq without the neighborhood. To get this problem in Iraq solved, we had to somehow involve Iran and Syria. I had to work the neighborhood.”
Fallon told me that his focus had been not on the Iranian nuclear issue, or on regime change there, but on “putting out the fires in Iraq.” There were constant discussions in Washington and in the field about how to engage Iran and, on the subject of the bombing option, Fallon said, he believed that “it would happen only if the Iranians did something stupid.”
Fallon’s early retirement, however, appears to have been provoked not only by his negative comments about bombing Iran but also by his strong belief in the chain of command and his insistence on being informed about Special Operations in his area of responsibility. One of Fallon’s defenders is retired Marine General John J. (Jack) Sheehan, whose last assignment was as commander-in-chief of the U.S. Atlantic Command, where Fallon was a deputy. Last year, Sheehan rejected a White House offer to become the President’s “czar” for the wars in Iraq and Afghanistan. “One of the reasons the White House selected Fallon for CENTCOM was that he’s known to be a strategic thinker and had demonstrated those skills in the Pacific,” Sheehan told me. (Fallon served as commander-in-chief of U.S. forces in the Pacific from 2005 to 2007.) “He was charged with coming up with an over-all coherent strategy for Iran, Iraq, and Afghanistan, and, by law, the combatant commander is responsible for all military operations within his A.O.”—area of operations. “That was not happening,” Sheehan said. “When Fallon tried to make sense of all the overt and covert activity conducted by the military in his area of responsibility, a small group in the White House leadership shut him out.”
The law cited by Sheehan is the 1986 Defense Reorganization Act, known as Goldwater-Nichols, which defined the chain of command: from the President to the Secretary of Defense, through the chairman of the Joint Chiefs of Staff, and on to the various combatant commanders, who were put in charge of all aspects of military operations, including joint training and logistics. That authority, the act stated, was not to be shared with other echelons of command. But the Bush Administration, as part of its global war on terror, instituted new policies that undercut regional commanders-in-chief; for example, it gave Special Operations teams, at military commands around the world, the highest priority in terms of securing support and equipment. The degradation of the traditional chain of command in the past few years has been a point of tension between the White House and the uniformed military.
“The coherence of military strategy is being eroded because of undue civilian influence and direction of nonconventional military operations,” Sheehan said. “If you have small groups planning and conducting military operations outside the knowledge and control of the combatant commander, by default you can’t have a coherent military strategy. You end up with a disaster, like the reconstruction efforts in Iraq.”
Admiral Fallon, who is known as Fox, was aware that he would face special difficulties as the first Navy officer to lead CENTCOM, which had always been headed by a ground commander, one of his military colleagues told me. He was also aware that the Special Operations community would be a concern. “Fox said that there’s a lot of strange stuff going on in Special Ops, and I told him he had to figure out what they were really doing,” Fallon’s colleague said. “The Special Ops guys eventually figured out they needed Fox, and so they began to talk to him. Fox would have won his fight with Special Ops but for Cheney.”
The Pentagon consultant said, “Fallon went down because, in his own way, he was trying to prevent a war with Iran, and you have to admire him for that.”
In recent months, according to the Iranian media, there has been a surge in violence in Iran; it is impossible at this early stage, however, to credit JSOC or C.I.A. activities, or to assess their impact on the Iranian leadership. The Iranian press reports are being carefully monitored by retired Air Force Colonel Sam Gardiner, who has taught strategy at the National War College and now conducts war games centered on Iran for the federal government, think tanks, and universities. The Iranian press “is very open in describing the killings going on inside the country,” Gardiner said. It is, he said, “a controlled press, which makes it more important that it publishes these things. We begin to see inside the government.” He added, “Hardly a day goes by now we don’t see a clash somewhere. There were three or four incidents over a recent weekend, and the Iranians are even naming the Revolutionary Guard officers who have been killed.”
Earlier this year, a militant Ahwazi group claimed to have assassinated a Revolutionary Guard colonel, and the Iranian government acknowledged that an explosion in a cultural center in Shiraz, in the southern part of the country, which killed at least twelve people and injured more than two hundred, had been a terrorist act and not, as it earlier insisted, an accident. It could not be learned whether there has been American involvement in any specific incident in Iran, but, according to Gardiner, the Iranians have begun publicly blaming the U.S., Great Britain, and, more recently, the C.I.A. for some incidents. The agency was involved in a coup in Iran in 1953, and its support for the unpopular regime of Shah Mohammed Reza Pahlavi—who was overthrown in 1979—was condemned for years by the ruling mullahs in Tehran, to great effect. “This is the ultimate for the Iranians—to blame the C.I.A.,” Gardiner said. “This is new, and it’s an escalation—a ratcheting up of tensions. It rallies support for the regime and shows the people that there is a continuing threat from the ‘Great Satan.’ ” In Gardiner’s view, the violence, rather than weakening Iran’s religious government, may generate support for it.
Many of the activities may be being carried out by dissidents in Iran, and not by Americans in the field. One problem with “passing money” (to use the term of the person familiar with the Finding) in a covert setting is that it is hard to control where the money goes and whom it benefits. Nonetheless, the former senior intelligence official said, “We’ve got exposure, because of the transfer of our weapons and our communications gear. The Iranians will be able to make the argument that the opposition was inspired by the Americans. How many times have we tried this without asking the right questions? Is the risk worth it?” One possible consequence of these operations would be a violent Iranian crackdown on one of the dissident groups, which could give the Bush Administration a reason to intervene.
A strategy of using ethnic minorities to undermine Iran is flawed, according to Vali Nasr, who teaches international politics at Tufts University and is also a senior fellow at the Council on Foreign Relations. “Just because Lebanon, Iraq, and Pakistan have ethnic problems, it does not mean that Iran is suffering from the same issue,” Nasr told me. “Iran is an old country—like France and Germany—and its citizens are just as nationalistic. The U.S. is overestimating ethnic tension in Iran.” The minority groups that the U.S. is reaching out to are either well integrated or small and marginal, without much influence on the government or much ability to present a political challenge, Nasr said. “You can always find some activist groups that will go and kill a policeman, but working with the minorities will backfire, and alienate the majority of the population.”
The Administration may have been willing to rely on dissident organizations in Iran even when there was reason to believe that the groups had operated against American interests in the past. The use of Baluchi elements, for example, is problematic, Robert Baer, a former C.I.A. clandestine officer who worked for nearly two decades in South Asia and the Middle East, told me. “The Baluchis are Sunni fundamentalists who hate the regime in Tehran, but you can also describe them as Al Qaeda,” Baer told me. “These are guys who cut off the heads of nonbelievers—in this case, it’s Shiite Iranians. The irony is that we’re once again working with Sunni fundamentalists, just as we did in Afghanistan in the nineteen-eighties.” Ramzi Yousef, who was convicted for his role in the 1993 bombing of the World Trade Center, and Khalid Sheikh Mohammed, who is considered one of the leading planners of the September 11th attacks, are Baluchi Sunni fundamentalists.
One of the most active and violent anti-regime groups in Iran today is the Jundallah, also known as the Iranian People’s Resistance Movement, which describes itself as a resistance force fighting for the rights of Sunnis in Iran. “This is a vicious Salafi organization whose followers attended the same madrassas as the Taliban and Pakistani extremists,” Nasr told me. “They are suspected of having links to Al Qaeda and they are also thought to be tied to the drug culture.” The Jundallah took responsibility for the bombing of a busload of Revolutionary Guard soldiers in February, 2007. At least eleven Guard members were killed. According to Baer and to press reports, the Jundallah is among the groups in Iran that are benefitting from U.S. support.
The C.I.A. and Special Operations communities also have long-standing ties to two other dissident groups in Iran: the Mujahideen-e-Khalq, known in the West as the M.E.K., and a Kurdish separatist group, the Party for a Free Life in Kurdistan, or PJAK.
The M.E.K. has been on the State Department’s terrorist list for more than a decade, yet in recent years the group has received arms and intelligence, directly or indirectly, from the United States. Some of the newly authorized covert funds, the Pentagon consultant told me, may well end up in M.E.K. coffers. “The new task force will work with the M.E.K. The Administration is desperate for results.” He added, “The M.E.K. has no C.P.A. auditing the books, and its leaders are thought to have been lining their pockets for years. If people only knew what the M.E.K. is getting, and how much is going to its bank accounts—and yet it is almost useless for the purposes the Administration intends.”
The Kurdish party, PJAK, which has also been reported to be covertly supported by the United States, has been operating against Iran from bases in northern Iraq for at least three years. (Iran, like Iraq and Turkey, has a Kurdish minority, and PJAK and other groups have sought self-rule in territory that is now part of each of those countries.) In recent weeks, according to Sam Gardiner, the military strategist, there has been a marked increase in the number of PJAK armed engagements with Iranians and terrorist attacks on Iranian targets. In early June, the news agency Fars reported that a dozen PJAK members and four Iranian border guards were killed in a clash near the Iraq border; a similar attack in May killed three Revolutionary Guards and nine PJAK fighters. PJAK has also subjected Turkey, a member of NATO, to repeated terrorist attacks, and reports of American support for the group have been a source of friction between the two governments.
Gardiner also mentioned a trip that the Iraqi Prime Minister, Nouri al-Maliki, made to Tehran in June. After his return, Maliki announced that his government would ban any contact between foreigners and the M.E.K.—a slap at the U.S.’s dealings with the group. Maliki declared that Iraq was not willing to be a staging ground for covert operations against other countries. This was a sign, Gardiner said, of “Maliki’s increasingly choosing the interests of Iraq over the interests of the United States.” In terms of U.S. allegations of Iranian involvement in the killing of American soldiers, he said, “Maliki was unwilling to play the blame-Iran game.” Gardiner added that Pakistan had just agreed to turn over a Jundallah leader to the Iranian government. America’s covert operations, he said, “seem to be harming relations with the governments of both Iraq and Pakistan and could well be strengthening the connection between Tehran and Baghdad.”
The White House’s reliance on questionable operatives, and on plans involving possible lethal action inside Iran, has created anger as well as anxiety within the Special Operations and intelligence communities. JSOC’s operations in Iran are believed to be modelled on a program that has, with some success, used surrogates to target the Taliban leadership in the tribal territories of Waziristan, along the Pakistan-Afghanistan border. But the situations in Waziristan and Iran are not comparable.
In Waziristan, “the program works because it’s small and smart guys are running it,” the former senior intelligence official told me. “It’s being executed by professionals. The N.S.A., the C.I.A., and the D.I.A.”—the Defense Intelligence Agency—“are right in there with the Special Forces and Pakistani intelligence, and they’re dealing with serious bad guys.” He added, “We have to be really careful in calling in the missiles. We have to hit certain houses at certain times. The people on the ground are watching through binoculars a few hundred yards away and calling specific locations, in latitude and longitude. We keep the Predator loitering until the targets go into a house, and we have to make sure our guys are far enough away so they don’t get hit.” One of the most prominent victims of the program, the former official said, was Abu Laith al-Libi, a senior Taliban commander, who was killed on January 31st, reportedly in a missile strike that also killed eleven other people.
A dispatch published on March 26th by the Washington Post reported on the increasing number of successful strikes against Taliban and other insurgent units in Pakistan’s tribal areas. A follow-up article noted that, in response, the Taliban had killed “dozens of people” suspected of providing information to the United States and its allies on the whereabouts of Taliban leaders. Many of the victims were thought to be American spies, and their executions—a beheading, in one case—were videotaped and distributed by DVD as a warning to others.
It is not simple to replicate the program in Iran. “Everybody’s arguing about the high-value-target list,” the former senior intelligence official said. “The Special Ops guys are pissed off because Cheney’s office set up priorities for categories of targets, and now he’s getting impatient and applying pressure for results. But it takes a long time to get the right guys in place.”
The Pentagon consultant told me, “We’ve had wonderful results in the Horn of Africa with the use of surrogates and false flags—basic counterintelligence and counter-insurgency tactics. And we’re beginning to tie them in knots in Afghanistan. But the White House is going to kill the program if they use it to go after Iran. It’s one thing to engage in selective strikes and assassinations in Waziristan and another in Iran. The White House believes that one size fits all, but the legal issues surrounding extrajudicial killings in Waziristan are less of a problem because Al Qaeda and the Taliban cross the border into Afghanistan and back again, often with U.S. and NATO forces in hot pursuit. The situation is not nearly as clear in the Iranian case. All the considerations—judicial, strategic, and political—are different in Iran.”
He added, “There is huge opposition inside the intelligence community to the idea of waging a covert war inside Iran, and using Baluchis and Ahwazis as surrogates. The leaders of our Special Operations community all have remarkable physical courage, but they are less likely to voice their opposition to policy. Iran is not Waziristan.”
A Gallup poll taken last November, before the N.I.E. was made public, found that seventy-three per cent of those surveyed thought that the United States should use economic action and diplomacy to stop Iran’s nuclear program, while only eighteen per cent favored direct military action. Republicans were twice as likely as Democrats to endorse a military strike. Weariness with the war in Iraq has undoubtedly affected the public’s tolerance for an attack on Iran. This mood could change quickly, however. The potential for escalation became clear in early January, when five Iranian patrol boats, believed to be under the command of the Revolutionary Guard, made a series of aggressive moves toward three Navy warships sailing through the Strait of Hormuz. Initial reports of the incident made public by the Pentagon press office said that the Iranians had transmitted threats, over ship-to-ship radio, to “explode” the American ships. At a White House news conference, the President, on the day he left for an eight-day trip to the Middle East, called the incident “provocative” and “dangerous,” and there was, very briefly, a sense of crisis and of outrage at Iran. “TWO MINUTES FROM WAR” was the headline in one British newspaper.
The crisis was quickly defused by Vice-Admiral Kevin Cosgriff, the commander of U.S. naval forces in the region. No warning shots were fired, the Admiral told the Pentagon press corps on January 7th, via teleconference from his headquarters, in Bahrain. “Yes, it’s more serious than we have seen, but, to put it in context, we do interact with the Iranian Revolutionary Guard and their Navy regularly,” Cosgriff said. “I didn’t get the sense from the reports I was receiving that there was a sense of being afraid of these five boats.”
Admiral Cosgriff’s caution was well founded: within a week, the Pentagon acknowledged that it could not positively identify the Iranian boats as the source of the ominous radio transmission, and press reports suggested that it had instead come from a prankster long known for sending fake messages in the region. Nonetheless, Cosgriff’s demeanor angered Cheney, according to the former senior intelligence official. But a lesson was learned in the incident: The public had supported the idea of retaliation, and was even asking why the U.S. didn’t do more. The former official said that, a few weeks later, a meeting took place in the Vice-President’s office. “The subject was how to create a casus belli between Tehran and Washington,” he said.
In June, President Bush went on a farewell tour of Europe. He had tea with Queen Elizabeth II and dinner with Nicolas Sarkozy and Carla Bruni, the President and First Lady of France. The serious business was conducted out of sight, and involved a series of meetings on a new diplomatic effort to persuade the Iranians to halt their uranium-enrichment program. (Iran argues that its enrichment program is for civilian purposes and is legal under the Nuclear Non-Proliferation Treaty.) Secretary of State Rice had been involved with developing a new package of incentives. But the Administration’s essential negotiating position seemed unchanged: talks could not take place until Iran halted the program. The Iranians have repeatedly and categorically rejected that precondition, leaving the diplomatic situation in a stalemate; they have not yet formally responded to the new incentives.
The continuing impasse alarms many observers. Joschka Fischer, the former German Foreign Minister, recently wrote in a syndicated column that it may not “be possible to freeze the Iranian nuclear program for the duration of the negotiations to avoid a military confrontation before they are completed. Should this newest attempt fail, things will soon get serious. Deadly serious.” When I spoke to him last week, Fischer, who has extensive contacts in the diplomatic community, said that the latest European approach includes a new element: the willingness of the U.S. and the Europeans to accept something less than a complete cessation of enrichment as an intermediate step. “The proposal says that the Iranians must stop manufacturing new centrifuges and the other side will stop all further sanction activities in the U.N. Security Council,” Fischer said, although Iran would still have to freeze its enrichment activities when formal negotiations begin. “This could be acceptable to the Iranians—if they have good will.”
The big question, Fischer added, is in Washington. “I think the Americans are deeply divided on the issue of what to do about Iran,” he said. “Some officials are concerned about the fallout from a military attack and others think an attack is unavoidable. I know the Europeans, but I have no idea where the Americans will end up on this issue.”
There is another complication: American Presidential politics. Barack Obama has said that, if elected, he would begin talks with Iran with no “self-defeating” preconditions (although only after diplomatic groundwork had been laid). That position has been vigorously criticized by John McCain. The Washington Post recently quoted Randy Scheunemann, the McCain campaign’s national-security director, as stating that McCain supports the White House’s position, and that the program be suspended before talks begin. What Obama is proposing, Scheunemann said, “is unilateral cowboy summitry.”
Scheunemann, who is known as a neoconservative, is also the McCain campaign’s most important channel of communication with the White House. He is a friend of David Addington, Dick Cheney’s chief of staff. I have heard differing accounts of Scheunemann’s influence with McCain; though some close to the McCain campaign talk about him as a possible national-security adviser, others say he is someone who isn’t taken seriously while “telling Cheney and others what they want to hear,” as a senior McCain adviser put it.
It is not known whether McCain, who is the ranking Republican on the Senate Armed Services Committee, has been formally briefed on the operations in Iran. At the annual conference of the American Israel Public Affairs Committee, in June, Obama repeated his plea for “tough and principled diplomacy.” But he also said, along with McCain, that he would keep the threat of military action against Iran on the table.
DEMOCRACY NOW Headlines for June 30, 2008


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U.S. Advisers Helped Iraq Draw Up Oil Contracts

The New York Times reports a group of American advisers led by a small State Department team played an integral part in drawing up contracts between the Iraqi government and five major Western oil companies to develop some of the largest oil fields in Iraq. The disclosure marks the first confirmation of direct involvement by the Bush administration in deals to open Iraq’s oil to commercial development. The Times recently reported the original partners in the Iraq Petroleum Company—Exxon Mobil, Shell, Total and BP— as well as Chevron, are on the verge of getting no-bid contracts to service Iraq’s largest oil fields. In their role as advisers to the Iraqi Oil Ministry, American government lawyers and private-sector consultants provided template contracts and detailed suggestions on drafting the contracts.

Democrats Agree to Fund Major Escalation Of Covert Operations Against Iran

Investigative reporter Seymour Hersh of the New Yorker magazine has revealed the Democratic-led Congress agreed to a request last year from President Bush to fund a major escalation of covert operations against Iran. Congress approved $400 million in spending for covert activities ranging from spying on Iran’s nuclear program to supporting rebel groups in a bid to overthrow the Iranian government.

UN: Civilian Death Toll in Afghanistan Soars 60%

The United Nations has revealed the number of civilians killed in Afghanistan has soared by 60 percent in the first half of the year. Nearly 700 civilians have been killed since January. John Holmes of the United Nations said the majority were killed by the Taliban or other militant groups but a significant number were killed by international forces. This comes as the Pentagon is predicting Taliban attacks and bombings will continue to increase because the Taliban has “coalesced into a resilient insurgency.” Fighting has also intensified across the border in Pakistan where Pakistani forces have begun a third day of assaults on suspected Taliban sites. It marks the first major Pakistani offensive against Taliban fighters in the Khyber tribal region.

Pentagon Drafts Secret Plan to Launch Missions Inside Pakistan
Meanwhile the New York Times reports the Pentagon drafted a secret plan to make it easier for the Pentagon’s Special Operations to launch missions against Al Qaeda inside Pakistan. But the plan known as Operation Cannonball has never been implemented in part because of fears of alienating Pakistani president Pervez Musharraf. The Times also reports that the war in Iraq consistently diverted resources and high-level attention from the tribal areas. When American military and intelligence officials requested additional Predator drones to survey the tribal areas, they were told no drones were available because they had been sent to Iraq.

Clinton and Obama Campaign in Unity, NH

In campaign news, Senator Hillary Clinton joined Barack Obama in the New Hampshire town of Unity on Friday. It marked Clinton’s first public appearance with Obama since she dropped out of the presidential race.

Sen. Hillary Clinton: “Unity is not only a beautiful place, it is a wonderful feeling. I know what we start here in this field today will end on the steps of the capitol when Barack Obama is elected president of the United States.”

Senator Barack Obama praised his former opponent.

Sen. Barack Obama: “I’ve admired her as a leader, learned from her as a candidate. [Audience Members Shouts "She Rocks”.] She rocks. She rocks. That’s the point I am trying to make. I am proud to call her a friend and I know how much we need Hillary and Bill Clinton as a party, as a country."

Meanwhile Senator Obama has announced plans to visit the Middle East and Europe ahead of the November election. Stops will include Israel, Jordan, France, Germany and Britain. Obama said the trip will allow him to “consult with some of our closest friends and allies about the common challenges we face.”

Mugabe Sworn in After Disputed Run-Off Election
In Zimbabwe, Robert Mugabe was sworn in Sunday for his sixth term following a disputed run-off election. Opposition leader Morgan Tsvangirai boycotted the poll due to a wave of deadly attacks on his supporters. Mugabe has ruled Zimbabwe since 1980 when it became an independent nation. Mugabe is in Egypt today for an African Union summit. Libyan state minister Ali Treiki urged Zimbabwe to accept a power-sharing government.

Ali Treiki: “I think now, let us envisage that a government of coalition should be formed from both the government and the opposition to run the country. I think the example we did in Kenya is a very good example, and are looking forward that our Zimbabwean brothers will follow that example.”

Moratorium Placed On New Solar Energy Projects on Fed Land
Solar energy companies have been dealt a major setback. The New York Times reports the Bush administration has placed a nearly two-year moratorium on the construction of new solar energy projects on public land. The Bureau of Land Management says it needs until the spring of 2010 to study the environmental impact the solar projects will have on land in Arizona, Nevada, California and other western states. Critics of the moratorium say it could paralyze the solar energy industry. Senate Majority Leader Harry Reid of Nevada said: “This] is the wrong signal to send to solar power developers, and to Nevadans and Westerners who need and want clean, affordable sun-powered electricity soon.” Some environmental groups have praised the government for assessing the implications of large-scale solar development. Meanwhile the amount of oil drilling and gas drilling on public land has reached a new high. The Wilderness Society recently reported that more than 44 million acres of public lands are leased for oil and gas development. Last year the Bush administration approved over 7100 drilling permits, a new record.

1,000 Wildfires Burn in Northern California
In northern California more than 17,000 firefighters continue to fight over a thousand wildfires. The blazes have scorched more than 550 square miles and destroyed more than 50 buildings. Air pollution warnings have been issued throughout Northern California. Officials say air pollution readings in the region are two to 10 times the federal standard.
Some areas are experiencing the worst air quality on record, with the smoke hanging down to the ground like a fog. The fires have destroyed nearly 50 structures, injured 85 people and threaten nearly 10,000 homes.

Congress Approves Additional $170M For Israel
In news from Capitol Hill, Congress has approved giving Israel an additional $170 million in aid next fiscal year. This means the U.S. will give Israel a total of more than $2.5 billion next year. Israel remains the largest recipient of U.S. foreign aid. The U.S. is planning to give Israel $30 billion over the next 10 years.

Israeli Officials Beat Palestinian Journalist At Border Crossing
Meanwhile a prominent Palestinian journalist has been hospitalized after being strip-searched and assaulted by Israeli officials at a border crossing between Jordan and the West Bank. The journalist, Mohammed Omer, was on his way back to Gaza after visiting London where he won the prestigious Martha Gellhorn Prize for journalism. Omer is the Gaza correspondent for the Inter Press Service and has been a guest on Democracy Now. According to Omer, Shin Bet officials interrogated him, pointed an M16 gun at his face then forcibly removed all of his clothing. Then officials pinned him to the floor and searched every cavity of his body. He began vomiting and fainted. He was then dragged on the floor with his head banging on the ground. He woke up in a Palestinian hospital.

Dow Jones On Brink of Worst June Since Great Depression
In economic news, the Dow Jones index is on the brink of its worst June since the Great Depression. The Dow has fallen by over nine percent this month.

Steven Hatfill to Receive Nearly $6 Million Settlement in Anthrax Case
In other news the Justice Department has agreed to give a nearly $6 million settlement to Steven Hatfill, the bio-weapons expert publicly tagged as a “person of interest” in the anthrax scare from October 2001.

50,000 Attend Mandela Celebration in London
And in London more than 50,000 people attended a star-studded concert on Friday to honor former South African President Nelson Mandela. Mandela turns 90 in July.

Nelson Mandela: “Even as we celebrate, let us remind ourselves that our work is far from complete. Where there is poverty and sickness including AIDS, where human beings are being oppressed there is more work to be done. Our work is for freedom for all.”

Congress Votes to Remove Mandela & ANC From Terror List
Meanwhile on Capitol Hill Congress has voted to finally remove Mandela and the African National Congress from the government’s terrorist watch list. The former South African president and some in the now-ruling ANC are still blacklisted under U.S. laws and need special permission to enter the United States more than a decade after the apartheid struggle ended.

Sunday, June 29, 2008

Bank of England Court chiefs resign en masse



From
June 29, 2008


Alistair Darling MP

ALL 16 nonexecutive directors of the Court of the Bank of England are to resign in an unprecedented shake-up of the institution.

The court has been heavily involved in helping to steer the British economy through the credit crisis of the past year. However, because of its size it has come under criticism for being too unwieldly.

To address this, all 16 nonexecutive members, who include several top names from the world of business and finance, will resign.

As few as five of the existing number could be re-elected in a bid to bring in some fresh faces with a deeper knowledge of the financial markets. The 16 include Arun Sarin, outgoing chief executive of Vodafone; Sir John Parker, chairman of National Grid and chairman of the court; Paul Myners, a former chairman of Marks & Spencer; David Potter, chairman of Psion; and Bob Wigley, chairman of Merrill Lynch Europe, Middle East and Africa.

Sarin, Myners, Sir Callum McCarthy, head of the Financial Services Authority (FSA), and Geoffrey Wilkinson, a nonexecutive director of the South West Strategic Health Authority, were reappointed to the court this month.

But in a letter to John McFall, chairman of the Commons treasury committee, Alistair Darling, the chancellor, makes clear that all the nonexecutive directors will rescind their positions when a new bill giving the Bank statutory responsibility for financial stability becomes law soon.

The new, slimmed-down court will consist of 12 members in all, four of whom will be Bank governor Mervyn King and his two deputies, and Lord Turner, the new head of the FSA. The rest will be nonexecutives, half the present number.

It is thought that many of the current figures will choose to step back permanently from membership of the court.

Peter Jay, a former economics editor of the BBC, could also choose not to stand for re-election, as could Susan Rice, chief executive of Lloyds TSB Scotland. The current membership includes Brendan Barber, general secretary of the Trades Union Congress.

Over the past 12 months the court has been active in advising and approving action by the Bank during the credit crisis, including its lender-of-last-resort facility for Northern Rock.

In his letter, Darling said that he saw an enhanced role for a “streamlined and modernised” court in financial stability.

There will also be a new financial-stability committee, made up of members of the court and chaired by the Bank governor.

The Treasury will also be entitled to send a representative to sit on this committee.

El cambio climático en el sur del país, riesgo de seguridad nacional





■ Esa parte de México, CA, Caribe y costas de India y China, las regiones más expuestas


■ Según un estudio presentado en Tokio, tales puntos sufrirán peores consecuencias económicas

■ Crecerán flujos de migración a las ciudades u otros países; en el norte se acentuará la sequía

Roberto González Amador (Enviado)

Tokio, 28 de junio. Una parte del territorio mexicano se encuentra entre las regiones del mundo en que el cambio climático puede provocar conflictos que afecten la seguridad nacional. “Es importante reconocer que el peligro no es sólo de naturaleza humanitaria, sino que incluye también riesgos políticos y de seguridad que afectan los intereses nacionales”. Es una de las conclusiones de un reporte preparado durante los últimos 18 meses y que fue presentado este sábado a un foro de expertos y legisladores de las 13 mayores economías del planeta.

La región que va del sur de México, la más pobre del país, a América Central y el Caribe es una de las dos en el mundo –la otra es el vasto territorio de las costas orientales de India y China– que han sido identificadas como las que sufrirán mayores consecuencias económicas por el cambio climático, fenómeno que tendrá también expresión en términos de estabilidad política y de aumento de las migraciones, según el reporte.

Además de la afectación económica, el cambio climático tendrá al menos otras dos expresiones sobre el territorio mexicano. Por un lado, hará crecer los flujos de migración desde las zonas más afectadas hacia las ciudades o a otros países. Mientras, el noroeste del país, en especial los estados de Sonora y la Península de Baja California, están clasificadas en el mismo rango de riesgo que las regiones desérticas del Oriente Medio de sufrir escasez de agua.

Las conclusiones del análisis fueron presentadas en un foro de legisladores del Grupo de los 8 (G-8) países más avanzados y de las cinco mayores economías en desarrollo: India, China, México, Brasil y Sudáfrica, que celebran aquí una reunión de dos días. Los resultados de las deliberaciones, que incluyen tópicos como biocombustibles, agricultura y transferencia de tecnología para reducir emisiones de gases contaminantes, serán integrados en un documento que será entregado a la cumbre del G-8, que se realizará el 7 de julio en Hokkaido, a la que también fueron invitados los gobernantes de los cinco países emergentes mencionados.




“Hemos pasado de hablar del cambio climático a expresar temores por la seguridad climática”, planteó Yuriko Koike, actual consejera de seguridad nacional del gobierno japonés y ex ministra de Defensa, en una de las sesiones del foro de legisladores G-8+5 en que se discutió el informe preparado por congresistas de los 13 países y expertos de organizaciones como el Banco Mundial.

Uno de los expertos consultados para el reporte, Tobias Feakin, del Real Instituto de Servicios Unidos, organización con sede en Londres, explicó que el sur y sureste de México se encuentra entre las regiones que se ha identificado como las de mayor riesgo en cuanto a migraciones relacionadas con el cambio climático, mayor daño por fenómenos naturales como huracanes y tormentas, y baja producción agrícola por cuestiones ambientales.

Mientras el sur es afectado por tormentas y huracanes, el noroeste de México es uno de los, así los llamó, “puntos calientes” del planeta en cuanto a las previsiones de escasez de agua.

Respecto de México, explicó que salvo la región sur, el resto del territorio nacional está clasificado como de riesgo de sufrir escasez de agua, con especial énfasis en los territorios de Sonora y las dos Baja California.

“Es la primera vez que hemos hecho una relación directa entre seguridad y cambio climático”, dijo el diputado canadiense Byron Wilfert, coordinador del panel que dirigió el estudio. “En estos temas están involucrados recursos como el petróleo y la biodiversidad. Es un tema de gran relevancia porque la desertificación va en aumento, la gente emigra en busca de agua y alimentos y en las zonas costeras crece el riesgo de inundaciones”, añadió.

Biocombustibles: fin a las barreras comerciales

El foro de legisladores del Grupo de los 8+5, que comenzó a reunirse desde 1997 hasta convertirse en un órgano permanente que interactúa con los gobernantes de las 13 naciones, también presentó en esta cita conclusiones sobre el tema de los biocombustibles, después de varios años de buscar una postura común.

Las conclusiones, presentadas por el diputado brasileño Antonio Pallocci, se hacen eco, precisamente, de las posturas de Brasilia. Uno de los puntos de acuerdo es que Estados Unidos y la Unión Europea deben reducir el cobro de aranceles a los biocombustibles brasileños, elaborados a partir de caña de azúcar, que son más eficientes que los elaborados con base en maíz –del que Estados Unidos es el líder en cuanto a producción.

Esa idea fue incluso apoyada por el ex premier británico Tony Blair, quien participó en la sesión de este día del foro.

“Las tarifas, subsidios y otras políticas relevantes deben ser revisadas para permitir a aquellos países con una ventaja comparativa en la producción de biocombustibles sustentables desarrollar industrias viables”, señala el documento de conclusiones.

Los países de la Unión Europea y Estados Unidos imponen aranceles a las exportaciones de biocombustible brasileño, elaborado con caña de azúcar y no con maíz y otros granos alimenticios, para beneficiar a sus productores locales. Este foro dejó clara la inviabilidad de seguir elaborando combustibles a partir de granos como el maíz, por el efecto que ello tiene en el precio de los alimentos.

Pallocci dijo que la actual oferta de biocombustibles es sostenible desde el punto de vista económico. Un barril de este tipo de carburante tiene un costo de 40 dólares, prácticamente 100 dólares menos que uno de petróleo, con una eficiencia energética en aumento.

Bajo la Lupa

Alfredo Jalife-Rahme

■ El México calderonista, “¿Estado financiero fracasado?”

Jim Willie vaticina la inminente crisis financiera de México (Financial Sense University, 20/6/08), al que cataloga de “Estado fracasado”, después de Stratfor y William S. Lind (ver Bajo la Lupa, 28/5 y 25/6/08).

Entramos a la caldera de Calderón y a las “emociones fuertes” que tanto le fascinan “a contracorriente” y en forma pueril cuando se intensifica la crisis multidimensional global en su aplicación local.

Muchos podrán fustigar al experto financiero Jim Willie, con un doctorado en análisis estadístico, de ser un fanático del oro, pero no se podrá negar que posee la virtud de tocar temas candentes que son eludidos por los especializados multimedia, sometidos a los intereses de la hoy atribulada plutocracia global que intenta ocultar el sol con sus dedos, manos y brazos amputados.

Considera que los “fundamentos económicos se encuentran en profunda perturbación al sur de Estados Unidos” y que el mítico superpeso está a punto de tropezar. Aborda tres teorías “entrelazadas entre sí” que explican su revaluación artificial:

1. El alza de las tasas de interés en México a 7.75 por ciento, cuando la Reserva Federal mantiene las suyas sin alterar, otorga un diferencial de 5.75 por ciento frente al rendimiento de corto plazo de los Bonos del Tesoro. Los cambistas ya lo sabían y se habían anticipado al alza muy cantada de Banxico, pero una de las consecuencias es que los “altos costos de empréstitos colocan a la economía en riesgo de una mayor desaceleración”. Agrega que el precio de la tortilla se ha triplicado debido, en parte, a los biocombustibles de Estados Unidos. No dice que el frívolo Congreso mexicano, sometido a los deseos unilaterales del régimen torturador bushiano, votó en favor del suicidio de los biocombustibles.

2. El dinero abandona la atribulada banca de Estados Unidos por temor a una bancarrota para retornar a México, lo cual incluye los “ahorros” de los cárteles de la droga temerosos “a quedar paralizados” o a ser “escudriñados durante el descubrimiento de una quiebra bancaria que exponga a los jugadores y sus relaciones de mayor nivel en el gobierno” bushiano.

3. “Una implosión está ocurriendo en México. El Estado fracasado mexicano requiere medidas protectoras que son muy difíciles de sopesar plenamente(…). Prevalece una mentalidad de búnker, mientras “se amplifica el desorden.”

“La situación de México se deteriora”, lo cual obliga a tres consideraciones cruciales: 1. El devenir del abastecimiento confiable de crudo a Estados Unidos, 2. El destino del ASPAN (SPP, por sus siglas en inglés, o el TLCAN Plus foxiano), y 3. El futuro de los derechos de minas en manos extranjeras que corren el riesgo de ser confiscados o de pagar mayores regalías.

No dice nada nuevo cuando asevera que la “riqueza del país está demasiado concentrada con los oligarcas, donde un pequeño grupo controla hasta 40 por ciento de la riqueza nacional”. Lo que calla es que tal expoliación doméstica se debe a la bendición de Estados Unidos que impuso su modelo neoliberal a Salinas y a la subsecuente cleptokakistocracia de “presidentes”.

Afirma que “los oligarcas mexicanos ejercen gran control sobre los políticos y usan al sistema para mantener poder y riqueza”, y advierte que los “ingresos petroleros de Pemex se encuentran en declive, un factor que obliga a cambios por la inmensa presión en las finanzas nacionales”. Peor aún: la industria petrolera nacional “es vista predominantemente como una fuente de ingresos del gobierno”.

Amonesta a los multimedia de Estados Unidos que rehúsan remarcadamente difundir las historias del horror al sur de la frontera. A su juicio, la principal característica del Estado fracasado mexicano “es evidente de arriba abajo, desde el deterioro financiero del gobierno federal”, y avizora que próximamente será presa de “déficits federales gigantescos (sic)”. Incluso se pregunta, en medio del caos creciente, “si puede ocurrir un ataque externo de origen sospechoso (sic)”. ¿Otro 11/9 bushiano, esta vez en México?

Hasta ahora el México calderonista “se ha beneficiado de una desinformación conjurada (sic)”, mientras sus “líderes y oligarcas explotan (sic) la situación para incrementar sus ganancias personales”.

Realiza un diagnóstico atroz de la industria petrolera mexicana, que enfrenta el dilema infranqueable de “surtir menos petróleo a Estados Unidos o a los consumidores mexicanos”: México “ha anunciado finalmente un notable recorte de abastecimiento de petróleo a Estados Unidos de casi 150 mil barriles al día, otra noticia totalmente ignorada por los multimedia de Estados Unidos”, lo que “ahonda la brecha comercial mexicana que será sometida a enormes déficits. El peso perderá su valor sustancialmente, lo que redundará en una grave inflación, mucho mayor que ahora”.

Si el gobierno decide surtir petróleo a Estados Unidos en detrimento de los usuarios locales, “entonces, la economía sufrirá carestía de gasolina y de productos petroquímicos (lubricantes, fibras sintéticas y fertilizantes). El precio de la gasolina se irá a las nubes, lo que puede desembocar en revueltas (sic). Se trata de una decisión perder-perder”.

Sostiene que el gobierno prefiere recortar la exportación de crudo a Estados Unidos (Nota: lo que pudiera explicar la paliza mediática del régimen torturador bushiano a Calderón, más proclive a los intereses de la pirata española Repsol).

Puntualiza que el importe de la gasolina aumentó 92.1 por ciento en el mes de junio del año pasado y que “ninguna refinería de gasolina ha sido construida en México en más de 20 años, situación mucho mejor que en Estados Unidos donde ninguna refinería ha sido construida en 35 años”.

El impacto financiero neto es que gran parte de las ganancias de reservas en divisas de Pemex se esfuma en importaciones de gasolina. Pero, ¿qué tal el locuaz Fox regalando refinerías en Centroamérica en el marco del fenecido Plan Puebla Panamá?

Sustenta, como buen venerador del oro, que las “condiciones pueden darse para un amplio movimiento de refugio en el oro, en caso de que México sea orillado a una inflación con masivos fondos federales de emergencia o a confrontar las extensas quiebras y la caída de sus bonos”.

Finalmente, arguye que la interrupción del abastecimiento petrolero de México a Estados Unidos podría descarrilar el militarizado ASPAN, al que califica como un secreto acuerdo cupular. Pues no estaría tan mal, de no ser por las ataduras financieras que legó la fauna neoliberal de De la Madrid, Salinas, Zedillo y Fox, y que pretende ahondar Calderón con su demencial entrega energética.

¿Victoria de Obama? ¿De qué alcance?


Immanuel Wallerstein

Que nadie lo subestime. Barack Obama ha ganado en grande. Ha ganado no sólo la nominación demócrata a la presidencia. Va a barrer en las elecciones con una gran mayoría del Colegio Electoral y un incremento considerable en la fuerza demócrata en ambas cámaras del Congreso. Antes de que analicemos qué tan lejos llegará, o podrá llegar –es decir, qué tanto cambio significa esto–, debemos mostrar qué tan real es su triunfo electoral.

En la demasiado prolongada competencia entre él y Hillary Clinton, tanto las encuestas como los resultados mostraron que cada uno de ellos era más fuerte en ciertas categorías de votantes. Obama tenía mayor fuerza entre los más jóvenes, los más educados, por supuesto entre los afroestadunidenses, y entre los situados políticamente más a la izquierda. Pero también le resultó más atractivo a los votantes independientes o a los republicanos que prefirieron votar por un demócrata. Clinton tuvo más fuerza con los más viejos, con los de menor educación, con las mujeres por supuesto, con los latinos y con los situados en lo político más en el centro.

Sin embargo, la decisión real fue la de los superdelegados. Y ellos votaron sobre una base muy diferente. Parecen haber estado convencidos de que sería un candidato más fuerte y que podría ganar aun en algunas áreas tradicionalmente republicanas. O aún si no ganara en la mayoría de esos estados, podría ayudar a ganar a los candidatos demócratas al Congreso. Es bastante sorprendente que, justo en esos estados, haya obtenido gran respaldo de los superdelegados, muchos de los cuales, individualmente, estaban entre los líderes demócratas más centristas, menos orientados hacia la izquierda. Dado que estos superdelegados estaban anclados a sus situaciones locales, algo nos dicen de las realidades políticas estadunidenses de 2008.

Acabo de terminar un análisis comparando de la fuerza de John McCain estado por estado en las encuestas más recientes, con la proporción de votos reales de Bush en 2004. En 45 de 50 estados, McCain es más débil, con frecuencia mucho más débil, de lo que era Bush. Por supuesto, si Bush ganó un estado por amplio margen, McCain podría ganar con un margen menor. Pero en los estados donde la competencia fue cerrada en 2004, la ola está en favor de Obama.

Es más, debemos percatarnos de que McCain se encuentra ahora en el clímax de su fuerza. El Partido Demócrata se reunifica y está hambriento de triunfo. Obama no perderá casi ninguno de los porcentajes demócratas tradicionales entre las mujeres y los judíos. Incrementará el porcentaje nacional entre los latinos y logrará incluir a un gran número de jóvenes y afroestadunidenses que de otro modo no habrían votado. Conseguirá también los votos de un número considerable de independientes y de republicanos desilusionados con Bush. La gente que votará contra Obama porque es afroestadunidense ya desde antes iba a sufragar por los republicanos. Este punto ya quedó atrás, no está frente a él.

Los republicanos, por otro lado, están profundamente divididos y son bastante morosos. La derecha cristiana no confía en McCain, y hasta ahora va con pies de plomo. Y olvidamos muy fácilmente la defección de los libertarios. Ron Paul planea una lucha en la convención. Y aunque por supuesto la perderá, sus simpatizantes están ya descontentos. Como Bob Barr compite por el partido libertario, muchos de los simpatizantes de Paul votarán por él. Barr puede ser para McCain en 2008 lo que Nader fue para Gore en 2000 –lo suficientemente fuerte como para negarle algunos cuantos estados. Y en general, la línea de McCain respecto de la economía estadunidense que se hunde es algo que le va a hacer perder mucho del respaldo que supone obtener entre los llamados demócratas reaganianos.

Si uno analiza la situación en detalle, estado por estado, el único que votó por los demócratas en 2004 en el cual McCain parece ser competitivo hoy es Michigan. Los estados que Bush ganó en 2004 en los cuales Obama es competitivo son numerosos –Ohio, Indiana, Iowa, Misuri, Nuevo México, Colorado, Virginia y tal vez Nevada, Carolina del Norte y Montana. Está haciéndola tan bien en Misisipi que los republicanos tendrán que invertir dinero y tiempo en hacer campañas ahí. Si Obama ganara en todos los estados competitivos excepto en Michigan, tendría entre 310 y 333 votos electorales. Y necesita 270.

El cuadro se ve mejor en las competencias para el Senado, donde los demócratas podrían ganar en algunos estados en los que Obama puede no lograrlo –por ejemplo en Kentucky, donde el líder de la minoría republicana en el Senado está en serios problemas pese a ser un estado muy republicano.

Entonces, ¿qué significa todo esto? Obama no está planeando ningún vuelco revolucionario de la política estadunidense. Está rodeado de muchos políticos y asesores demócratas convencionales. Pero será impulsado al poder por una ola de entusiasmo por el cambio que Estados Unidos no había visto desde la elección de Kennedy. Es cierto que no podrá hacer mucho en la escena mundial, pese al hecho de que será vitoreado por el resto del mundo. Hoy, la anarquía geopolítica global está mucho más allá del control de cualquier presidente estadunidense.

Pero será empujado a realizar importantes cambios dentro de Estados Unidos. Por supuesto, la mera elección de un afroestadunidense representará un notable cambio cultural, y no dejará de tener gran impacto. Sus electores esperan que internamente, Obama lance el equivalente de otro Nuevo Trato —cobertura de atención a la salud, restructuración fiscal, creación de empleos, salvamento de las pensiones. Qué tanto pueda hacer dependerá en parte de la recesión global, que está en gran medida más allá de su control, pero aun un liderazgo tan fuerte puede jugar un papel importante, solamente hasta cierto punto. El ejemplo de Roosevelt nos muestra eso.

La gran interrogante es qué tan lejos llegará para desmantelar las estructuras estatales cuasi policiacas que el régimen de Bush instituyó bajo la cobertura de una guerra contra el terrorismo. Esto implica mucho más que nombrar mejores jueces. Significa una revisión radical de la legislación y de las políticas ejecutivas, y sacar a la luz del día las reglas y prácticas ultrasecretas. Mucho puede hacerse, como sabemos, a partir de lo que se logró en los 70 respecto de los ámbitos de la CIA y la FBI. Pero la situación es mucho peor ahora y requiere más. La historia puede muy bien juzgar a Obama, sobre todo en relación a lo que logre en este terreno. Hasta ahora ha permanecido bastante en silencio al respecto.

Obama ha ganado en grande. Su elección marcará –marcará, no causará– el fin de la contrarrevolución de la derecha mundial de los 80. Él ha rencendido la esperanza y ha creado el espacio para un mundo más progresista pero dicho espacio se encuentra estructuralmente constreñido por las limitantes de un sistema-mundo más anárquico que nunca. La cuestión básica no es si podrá transformar el mundo o restaurar el liderazgo estadunidense en el sistema-mundo –no hará ni lo uno ni lo otro–, sino si hará todo lo posible para permitirnos a todos impulsar nuestra vía hacia delante. Aun si esto es menos de lo que el mundo desearía que hiciera.

Traducción: Ramón Vera Herrera

© Immanuel Wallerstein



Se ruega no confundir gordura con hinchazón

Guillermo Almeyra


Un artículo de Rossana Rossanda sobre el próximo congreso de Refundación Comunista (RC) me preocupó profundamente. No por disentir –una vez más– con una intelectual que es conservadora, pero también inteligente, sino porque su pensamiento no sólo refleja el de buena parte de los colaboradores de Il Manifesto, sino también el de una vasta tribu de supuestos autónomos que creen que la política consiste en formar de tanto en tanto sin continuidad grupos de personas en torno de problemas importantes (como el racismo, la guerra, la desocupación juvenil, la corrupción estatal, la ecología o el feminismo), rechazando al mismo tiempo la organización, así como una acción consecuentemente anticapitalista.

Rossana Rossanda toma partido, en vísperas del Congreso, por la tesis de Nicki Vendola, Fausto Bertinotti y de los viejos dirigentes de RC que se orientan cada vez más hacia la construcción de una Gran Albóndiga (¡otra vez la Cosa!) con los ex “comunistas” conciliadores con el capital, ex miembros del “partido de izquierda democrática”, ex “democráticos de izquierda” y ahora simplemente “democráticos” del mismo tipo que los Clinton, sus modelos. Ella y quienes piensan como ella creen en efecto que un movimiento-amiba, sin estructura y de formas cambiantes, podría sumar voluntades, cuando esa hinchazón sin solidez resultaría en realidad efímera y fatal, como lo demuestra la historia de todas las organizaciones nacidas del intento de salir de la crisis de un partido formando otro con retazos y restos políticos de otros.

Esto no quiere decir que la tendencia constituida por el ex ministro Ferrero, el ex senador Giovanni Russo Spenna y otros ex dirigentes que provenían de Democracia Proletaria cuando se aliaron con Bertinotti en RC dé una garantía de reorganización de la izquierda clasista. En efecto, ellos no sólo apoyaron el ingreso en el gobierno Prodi y, en nombre de la disciplina de la mayoría, todo lo que el mismo hizo, incluso todo lo que antes habían denunciado durante años, sino que también actuaron burocráticamente en la misma RC acallando las voces disidentes e incluso expulsando gente leal a las propuestas prelectorales y a los principios que el partido proclamaba y que lo distinguían. Eso es difícil de olvidar, y para reconquistar credibilidad ante la juventad, esa tendencia, además de una vigorosa y pormenorizada autocrítica, deberá hacer durante años la travesía del desierto político.

La llamada Izquierda Crítica, que se fue de RC pocos meses antes de las elecciones donde ésta naufragó, si hubiese tenido un poco más de paciencia habría podido ayudar hoy a reunir lo que aún se puede salvar en ese partido. Ahora, sola, no tiene porvenir sino en un acuerdo tácito con esta “izquierda realmente existente”, porque el grupo de militantes que se reúne tras la moción congresual de Ferrero-Russo Spenna, a diferencia de la tendencia Vendola, levanta todavía en el desastre y la derrota la bandera hecha jirones del movimiento obrero y del socialismo e intenta reconstruir una izquierda desde los movimientos sociales y no desde los acuerdos de cúpula entre los diferentes huérfanos formados todos en las concepciones de Togliatti y de Stalin.

En Francia, otro país donde un partido comunista que, después de la Liberación, tenía un cuarto de los votos y una fuerte base obrera, y gran peso entre los intelectuales, los restos de ese partido otrora poderoso no llegan hoy a representar sino menos de 2 por ciento de los votantes y están a la rastra de la dirección socialista, que es de centroderecha. Los ecologistas también han perdido buena parte de sus votos, al igual que los pequeños partidos de origen trotskista que se integraron en el Partido Socialista o que trabajan con éste manteniendo en lo político un fuerte sectarismo. Pese a ello la Liga Comunista Revolucionaria (LCR), hasta ayer sección francesa de la IV Internacional trotskista y su principal partido, tras obtener un poco menos de 5 por ciento de los votos cree poder crecer convirtiéndose en el eje de un más amplio Partido Revolucionario francés, con una estructura y un programa menos definidos y con militantes que espera podrían venir sobre todo de los comunistas, de otros grupos trotskizantes y de los verdes de izquierda. Para eso, por supuesto, debería abandonar sus lazos organizativos con la Internacional trotskista, que se convertiría en una especie de Casilla Postal para informaciones, y abandonaría también a Trotsky como referencia teórica central, remplazándolo por otro (¿Guevara?) que pueda cobijar distintas interpretaciones revolucionarias. Estoy muy lejos de compartir la concepción leninista del partido que Trotsky defendía a capa y espada y que la LCR decía era la suya, pero pienso que un partido se construye en torno de ideas claras y no de maniobras organizativas, y que la confusión programática prepara crisis sucesivas y escisiones. También en este caso conviene no confundir gordura (el crecimiento sólido de un todo orgánico) con hinchazón (la unión circunstancial de los diversos, por necesidad táctica). Es peligroso también pensar que un aumento de los votos exprese por sí misma la salud de una tendencia política y le garantice automáticamente una capacidad de incidir en la sociedad. Los votos no se dan sólo para apoyar una línea sino, generalmente, para expresar el descontento vago o para repudiar a quienes decepcionaron al votante. No son un capital sino un terreno que hay que conquistar y consolidar.
Tax scandal leaves Swiss giant reeling

Banking crisis


UBS could lose its licence in America after an official confessed to illicit tactics that helped clients avoid the Revenue.

Nick Mathiason reports

Nick Mathiason
The Observer, Sunday June 29, 2008
Article history

It was an offer the Californian real-estate billionaire Igor Olenicoff couldn't refuse. For several years, the US Internal Revenue Service had been on his tail. Suspecting serial tax evasion running into tens of millions of dollars, the IRS painstakingly amassed enough information to jail the Russian immigrant for decades.

In 2006, tax investigators offered Olenicoff, a man who has strong connections with Boris Yeltsin, a deal. In return for the identity of those who helped him evade taxes, his sentence would be slashed. It took Olenicoff, who owned 11,000 houses and a large collection of high-grade offices, less than 30 seconds to make up his mind.

After two years of further investigations, Olenicoff's evidence resulted this month in a dramatic development. UBS, the most powerful bank in Switzerland, is now on the edge of a steep cliff. Ten days ago, Bradley Birkenfeld, who between 2001 and 2006 was a senior UBS banker, signed a US court statement detailing how he smuggled diamonds in toothpaste tubes, deliberately destroyed offshore bank records on behalf of clients and helped Olenicoff evade taxes of $200m on offshore assets worth $7.26bn.

In an explosive seven-page deposition, Birkenfeld claims he was encouraged to win clients at UBS-sponsored tennis tournaments and major art events. UBS bankers, he said, assisted wealthy Americans to conceal ownership of their assets by creating 'sham' offshore trusts. Misleading and false documentation was routinely prepared to facilitate this, and the motivation, he concluded, was to ensure that UBS continued to manage a staggering $20bn of assets owned by wealthy US individuals, which generated the bank $200m in fees each year.

'By concealing US clients' ownership and control in the assets held offshore, [UBS] managers and bankers... defrauded the IRS and evaded US income tax,' reads the statement. The US Department of Justice has scented blood and is moving in for the kill. UBS denies authorising or encouraging any breaches of applicable laws and regulations and has put out a statement saying it will fully cooperate with all authorities and address any issues raised by the investigation (see below). It is now faced with having to hand over details of its 20,000 US clients to the authorities.

It is an understatement to say that Birkenfeld's allegations have sent shockwaves through the Swiss financial establishment, which prides itself on selling secrecy to the world's super-rich.

'It does look bad,' says a senior UBS insider in London. 'Everyone is pretty upset. The Swiss government will not allow its wealth management to be badly damaged by this. I think the US government has to be very careful how it deals with foreign companies... The US, of all countries, needs foreign investment. It won't shoot itself in the foot. A lot of shareholders in UBS are US funds.'

Others are not so sure. A Credit Suisse analyst said last week that UBS could lose its banking licence in the US if Birkenfeld's claims are found to be true.

For UBS, the scandal could not come at a worse time. No other European bank has suffered as much from the sub-prime meltdown as the Zurich-based giant. It has been forced to write down a staggering $38bn in assets. Its losses have led to the departure of the chief executive, chairman Marcel Ospel and other managers and have prompted it to seek emergency investment from Singapore and the Middle East. Now predators led by HSBC and Credit Suisse are said to be ready to pounce. Last Wednesday, UBS appointed Lazards to consider its options. 'I envisage it will be broken up,' says the London UBS source. 'But nothing will be done without the Swiss government.'

Indeed, a delegation from the Swiss finance and justice ministries flew to Washington last week. Their mission was somehow to balance the disclosure of UBS's 20,000 clients' details with the need to protect client confidentiality.

To many, the UBS tax evasion allegations present more compelling evidence of the destabilising role that secretive tax havens play in the global financial system. It is a system that connects Wall Street and the City to Liechtenstein, Panama and the British Virgin Islands - all places where Birkenfeld parked the cash of his wealthy clients. This week MPs on the powerful Treasury Select Committee will launch a probe into tax havens.

The allegations of problems at UBS come just five months after details emerged of how tens of thousands of high net worth individuals used a Liechtenstein bank to evade billions of pounds' worth of taxes. The revelations have sparked investigations in the US, UK, Germany and a host of other countries.

Just how US citizens got to park their wealth offshore in ever-increasing numbers dates back to rules framed by former US President Bill Clinton and his Treasury Secretary, Robert Rubin, now chairman at US bank giant Citigroup. Rubin introduced a status known as 'qualified intermediary' for financial institutions to help them assist the wealthy with international income. 'QI' placed the responsibility on banks to declare their clients' tax status. They also had to identify the beneficiaries of overseas bank accounts. But Rubin left a huge loophole: beneficial owners could be corporations. Clever bankers quickly, and legally, created a web of trusts that shielded the identity of the true beneficiary. It was seemingly the very technique deployed by UBS bankers to protect Olenicoff's fortune, according to Birkenfeld's deposition.

Among the Swiss financial community there is shock at what is now the serious prospect of money rushing to leave the Swiss banking system and heading for even more secretive locations like Singapore. But there is also defiance. James Nason of the Swiss Bankers Association says: 'Do a Google search for "Delaware" or "Nevada" plus "offshore" and you'll find more tax avoidance schemes designed for Americans than you can poke a stick at - and they are certainly not made in Switzerland.'

Yet for years Switzerland has faced criticism for being the money launderers' nerve centre. But Nason says: 'Money laundering is a global problem and I think the media unfairly points at Switzerland. Very often large sums of criminal money can be [tracked down] in banks in other countries, where "know-your-customer" rules are less strict than in Switzerland, only because some of the transfers involved a Swiss bank.'

For UBS, and for confidential banking, the future now rests on the outcome of the US election in five months. UBS's links to the US financial establishment centre on its vice-president, Phil Gramm. Gramm, a former Texas senator who is co-chairman of John McCain's campaign, is tipped to be his choice for Treasury Secretary if he is elected. Described by McCain as the most astute political strategist he knows, Gramm was instrumental in pushing through the most fundamental US banking liberalisation since the Thirties. His critics say the Gramm-Leach-Bliley Act broke down walls between commercial banks, investment banks and insurance companies, allowing for the ratcheting up of mortgage offers to the poor. Gramm supporters say he has consistently fought against mis-selling abuses and that, without his legislation, the US mortgage crisis would be even worse.

Democratic candidate Barack Obama, meanwhile, has made no secret of his drive to tax the rich and rein in offshore tax abuses, having signed Senate legislation last year to do just that. Dr Andreas Missbach of the Berne Declaration, a Swiss non-governmental organisation, says: 'Does the future of the Swiss banking system rest on the outcome of the US presidential race? Yes, definitely.'

UBS's statement
'UBS is working diligently with both Swiss and US government authorities, consistent with Swiss law and the legal frameworks for intergovernmental cooperation and assistance, to promptly provide information concerning instances in which the establishment and operation of such offshore entities and their UBS securities accounts appears to have been part of a scheme to defraud US tax authorities. UBS is committed to a fundamental policy of compliance with all applicable laws, rules and regulations, and to our own internal policies, guidelines and procedures.

'Consistent with this fundamental policy, UBS is treating these investigations with the utmost seriousness and will appropriately and responsibly address and correct any issues raise in the investigations, including taking appropriate disciplinary action.'

About this articleClose This article appeared in the Observer on Sunday June 29 2008 on p4 of the Business news & features section. It was last updated at 00:05 on June 29 2008.