Courcy's Intelligence Brief - 07 May 2014

Items

  • Despite appearances, China may be getting the message

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    Fresh from receiving assurances from President Obama that “close US-Japan cooperation is essential in managing and responding to long-standing and emerging threats and challenges in Asia”, Japan’s Prime Minister Shinzo Abe has been seeking to shore up support in Europe, with some success.  China’s headline actions this week would suggest that none of this is having any modifying effect on its behaviour, but the relatively positive reception given in Beijing to a high-level Japanese political delegation earlier this week provides a hint (no more than that) that China may just be preparing to dilute its policy of maximum assertiveness, at least as far as Japan is concerned.

    There has been a tendency within Europe to see difficulties between the US/Japan and China as an opportunity for Europe to exploit.  In March 2012, the EU-funded Europe-China Research and Advice Network (Ecran) produced a strategy document in which it argued: “We should bear in mind…that China poses no military threat to Europe.  Nor is it an exporter of international terrorism.  Its sphere of influence is primarily East and Southeast Asia…where it seeks to protect its borders and to safeguard oil exploration projects in the South China Sea.  It also aspires to develop a second line of defence through a naval presence in the Indian Ocean and potentially the Pacific.  But in neither case are European interests directly involved – something that promises to benefit the EU in its engagement with China.”

    Shortly after this, in December 2012, the EU-funded European Institute for Security Studies (EUISS) put forward a similar argument when it pointed out that the development of EU-China relations had been “facilitated by the absence of conflict issues that could bring the two sides to a military confrontation – unlike the case of US-China relations where the Taiwan factor and US commitment to Asia’s security may lead to military stand-off.”

    Startlingly, the report concluded that “China…presents a strategic opportunity to enhance Europe’s role in world affairs and gain autonomy from the US.”

    Against this background, it might be thought that Abe would have struggled to gain traction during his visit this week to Europe which took him to Germany, the UK, Portugal, Spain, France, and Belgium.  Yet in France, he reached an agreement to start negotiating a deal for the joint development of defence equipment, and the two sides confirmed plans to strengthen cooperation on nuclear energy technology.  A summit meeting between the two countries’ leaders is to be held every year, and France’s President Francois Hollande committed France to holding a regular security dialogue with Japan.

    While in the UK, Abe and Prime Minister David Cameron also agreed to the launching of regular foreign and defence minister talks and to the joint development of defence equipment and technology.  Abe also extracted statements from Hollande, Cameron, and German Chancellor Angela Merkel on the importance of countries staying within international law in connection with territorial claims.  And Abe signed a new Individual Partnership and Cooperation Programme (IPCP) with Nato.

    None of this is to suggest that Europe is preparing to take sides with Japan in its disputes with China to the extent that the US has, but the relative success of Abe’s European tour, particularly given the propensity (noted above) of EU strategic thinkers in recent years to argue for a European alignment with China, should give Beijing some pause for thought.

    Abe’s hope is that China will eventually reach the conclusion that its recent assertiveness in the East and South China Seas may be counterproductive.  For the moment there is little indication that this is about to happen, and indeed Chinese actions in the past week would suggest the opposite, with China moving an oil rig into what Vietnam says are its territorial waters and the flare up of a dispute with Philippines over the detention of a Chinese fishing boat on 6 May off Half Moon Shoal in the Spratly Islands.

    Vietnamese officials believe that the Chinese decision to send the oil rig into Vietnamese waters was political not commercial.  A Vietnamese official said: “This reflected the will of the central government and is also related to the US strategy on Asia.”  In other words, it was a pushback against the renewed commitments made by President Obama to the US’s Asia allies during his just-concluded visit to the region.

    Nevertheless, despite this apparent riposte to Obama’s Asian tour, it is worth noting that at the beginning of this week a delegation of senior Japanese lawmakers to China received a better reception than might have been expected.

    The delegation of ruling and opposition lawmakers was led by Masahako Komura, vice president of the ruling Liberal Democratic Party.  Komura told Zhang Dejiang, number three in the Communist Party of China (CCP), that Abe was keen to hold a formal meeting with China’s President Xi Jinping this year, possibly on the sidelines of the Asia-Pacific Economic Cooperation forum in November in Beijing.

    There have been few high-level political contacts since the Japanese government purchased some of the disputed Senkaku/Diaoyu Islands from a private owner in September 2012, and Komura’s meeting with Dejiang was the first between a senior member of Japan’s ruling party and a member of the Politburo Standing Committee since Abe came to power in December 2012.

    Interestingly, the Japanese delegation also met with Li Xiaolin, the daughter of former Chinese president Li Xiannian and a close friend of Xi’s.  Li has previously acted as an emissary for Xi and is reported to have held secret talks with Japan’s Deputy Prime Minister Taro Aso about a year ago.  She also met with Abe a day before he assumed office on 26 December 2012.

    The strong Chinese restatement in the last few days of its territorial claims against Vietnam and the Philippines would indicate that Beijing is not even close to a retreat from its maximalist claims for sovereignty over the South China Sea, but, for those with an optimistic frame of mind, there might just be a hint in China’s reception of Komura’s delegation of an understanding that its growing assertiveness could be counterproductive, particularly with regards to Japan.  JdeC.

    NOTE:  Much has been written about the validity of the recent claim that China is now the world’s biggest economy when measured on the basis of purchasing power parity (PPP).  It is a highly technical debate, but two statistics grab attention: China’s steel industry is 10 times as large as America’s and as big as the rest of the world’s put together; and China poured more concrete in the three years 2009-2011 than America poured during the whole of the 20th century.  China has now also become the world’s biggest net importer of oil, although the US still consumes considerably more than China (18.6m barrels per day versus China’s 10.9m).

  • The EU’s contribution to Russian paranoia

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    This time last year, we highlighted an extraordinary report produced by the EU’s agency for analysing foreign, security, and defence policy issues, the European Institute for Security Studies (EUISS) called Enabling the Future – European Military Capabilities 2013-2025.  Two things were remarkable about the report: the depth of its ambition for developing the EU’s foreign and security policy, and the decidedly old-fashioned emphasis on the need to develop an extended EU zone of influence.  It is worth recalling this report when trying to understand Russia’s actions in Ukraine.

    The focus of the report was the need for the European Union to develop its own military capabilities “unless Europeans are resigned to becoming ever more dependent, vulnerable, and dispensable”.  The report called for European autonomy on military matters, which it defined, in part, as “the possession and control of capabilities required to fulfil a given mission…”

    The report then went on to argue that the EU must reassess its strategic objectives and develop “zones of EU privileged interest” in its “Eastern and Southern neighbourhoods”.  Remarkably, this is exactly the same terminology as was used shortly after the Georgian war of August 2008 by Russia’s President Dmitry Medvedev when he declared that Moscow had a “zone of privileged interests”.

    It is also exactly the kind of terminology that the US has been criticizing when used by Russia.

    One of the scenarios the EUISS report envisages is “military modernization in an increasingly authoritarian country on the EU’s periphery”, which could clearly mean Russia, to which the EU response should be “a higher state of conventional (even nuclear) military preparedness”.  The report added that “sufficient European forces would need to be mobilized to dissuade, but without giving the impression of a potential European preventive or pre-emptive strike against the foreign country’s own infrastructure”.

    The key conclusion of the report is that “Europeans should focus on improving their ability to temporarily project and even permanently extend their armed forces into the EU’s geographic zones of privileged interest” [our emphasis added].  These regions are specifically said to include the Caucasus.

    For Moscow, the ambitions articulated in this report undermine the claim that the EU is an entirely benign institution whose eastward expansion poses no possible threat to Russia.

    No doubt the European Union’s strategic thinkers were getting ahead of themselves in the May 2013 report, mixing up capabilities and ambitions, but with influential EU agencies articulating such ambitions Russia’s concerns about the consequences of EU encroachments in Ukraine look to have more justification than Western leaders are willing to admit.  There are considerable dangers in this Western unwillingness to understand the Russian perspective.

    NOTE:  According to the latest Levada Centre poll, 54% of Russians think that Russia has the right to annex territories of the former Soviet Union “on the basis of declarations that Russians living there may suffer or are already suffering from abuse and violation of their rights”.

  • Venezuela to get worse before it gets better

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    The crisis in Venezuela shows little sign of easing, and the latest opinion polls suggest that worse is to come.

    Almost 80% of Venezuelans think the country is in a pretty bad state, while 69% view dimly the government led by President Nicolas Maduro, according to a new omnibus survey by local pollsters Datanálisis, released on 5 May.

    Half the respondents self-identifying as Chavistas viewed the country negatively.  Amongst the opposition, the figure was 96.9%, while 89.6% of the ‘ni-ni’s’ (‘neither-nors’) agreed.  Seven of every ten said the political situation was “unstable”; 65.2% said the same of the Maduro government itself.

    The main concern for most people (32.5%) is the scarcity of basic supermarket goods, followed by personal insecurity (23.5%) and the high cost of living (8.5%).  Earlier this week, President Maduro launched a new ‘secure food supply’ electronic card, which entitles people to a basket of basic goods once a week and is meant to ensure equitable supplies.  It also tracks people’s purchases in state-run supermarkets, in an effort to prevent hoarding.  Critics have dubbed it a ration-card, similar to Cuba’s ‘libreta’ (little book).

    Over two-thirds of the 1,300 people surveyed by Datanálisis between 31 March and 20 April said they support peaceful protests, but there was widespread opposition across all sectors to the disruptive ‘guarimbas’ (make-shift street barricades erected by anti-government protestors).

    The key point to watch for is the increasing number of people who do not think Maduro should complete his presidential term, only just over a year after 51% of the country voted him in as president.

    According to the poll, 59.1% of respondents believe he should not stay in the Miraflores palace until 2019.  Of these, 39% (predictably, most opposition or non-aligned) said he should abandon his post this year.  A fifth (20.1%) backed the idea of a recall referendum come the half-way point of the current term in 2016.  Only 20% said he should see out his term to early 2019.

    These kinds of numbers may exacerbate the rumoured splits in the government between a hardline nationalist-military wing and a more Cuban-influenced civilian wing.

  • Risk pointers

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    *** Kurdish troubles.  According to a Turkish police report, the Kurdistan Workers Party (PKK), with which the government is in peace talks, has kidnapped 331 children over the past six months, including 15 children from a local festival on 23 April.  According to one of the kidnapped children’s family, the pro-Kurdish Peace and Democracy Party (BDP) has asked the PKK to return the children but it has refused.

    There is a feeling in security circles that renewed activity by the PKK could be leading towards a breakdown in the ceasefire agreed last year.  The Kurdistan Communities Union (KCK) and the PKK are said to have established 48 training centres across 10 provinces.  It is said that as many as 8,500 youths are being trained in these centres, which are euphemistically called Education Support Houses (EDEV).

    Security sources say that the purpose of  the centres is to recruit more PKK members and to strengthen its support base.  Participants are being encouraged to join PKK militants based in the mountains.

    *** Hopes for Colombian peace deal by year-end.  Colombia’s President Juan Manuel Santos, who is facing re-election on 25 May, says that he is convinced that he can achieve peace with the FARC rebel group by the end of this year if he is re-elected.  In an interview on Monday, he said: “I do not like imposing absolute deadlines, but the dynamics suggest that before the end of the year we could end the five-point agenda”.

    Santos said that “almost three” of the agenda items had been agreed, and that the other two, transitional justice and what to do with the demobilization and surrendering of weapons, “could be completed in the remaining months of this year”.  He added: “We will close the point of drug trafficking in the coming weeks”.

    Santos also said that he hopes any peace deal can embrace the ELN guerrillas as well.  He said: “It is a challenge that I hope we can address and hopefully we can converge the two processes and end all guerrilla forces in Colombia once and for all.”

    In answer to his critics for talking to guerrillas, Santos said: “Of course we are talking with enemies.  Sometimes people forget that peace is negotiated with enemies.  They accuse me of legitimizing enemies, but of course if you don’t sit down with them you wouldn’t be able to reach any kind of agreement.”