Courcy's Intelligence Brief - 13 November 2013

Items

  • US sees urgency for deal with Iran as Rowhani loses ground

    LatinNews 13 November 2013 Hits: 569

    Understandably, the headlines on Iran have all been about the failure of the latest round of nuclear negotiations in Geneva to produce an agreement.  Expectations that an agreement would be signed had been raised by the presence of the foreign ministers from the five permanent members of the UN Security Council towards the end of the talks.  The talks stumbled over exactly what Iran was prepared to concede at this stage and over the scheduling of sanctions relief.  That there has been disappointment in the West over the failure to reach an acceptable deal is clear, but perhaps as interesting is the growing sense within reformist circles in Iran that President Hassan Rowhani has not lived up to his promise in his first 100 days in office since being elected in June 2013.

    Reformist sources in Iran say that the real issue is whether or not Rowhani will continue to have the support of Supreme Leader Ayatollah Ali Khamenei against the hardliners.  The clearest evidence that he did have Khamenei’s support for a major change in direction was the telephone conversation with US President Barack Obama during the UN General Assembly in September.  This was accompanied by a meeting between the new Iranian foreign minister, Java Zarif, and US Secretary of State John Kerry.

    In addition to this, Rowhani made a conciliatory gesture towards Israel on 4 September when he said: “As the sun is about to set here in Tehran, I wish all Jews, especially Iranian Jews, a blessed Rosh Hashaneh.”  At the same time Zarif tweeted: “Iran has never denied it [the Holocaust].  The man who did [former president Ahmadinejad] is now gone.”

    Other positive signs have included the meeting between Zarif and the UK’s Foreign Secretary William Hague on the sidelines of the nuclear talks in Geneva to agree a re-opening of their respective embassies in Tehran and London.

    But in early November Khamenei started to throw out some negative signals.  On 3 November, for instance, his website reported him as making a speech to mark the takeover of the US embassy in 1979 in which he said: “No-one should consider our group of negotiators to be compromisers.  This is wrong.”  He added: “I am not optimistic.  I don’t think these negotiations will yield the results the Iranian nation expects.”

    Sources say that the fate of political prisoners since Rowhani’s election is another indicator of how limited the reform agenda currently is.  Immediately following the new president’s inauguration, a number of high-profile political prisoners were released, including the human-rights lawyer Nasrin Sotudeh, former deputy foreign minister Mohsen Aminzadeh, and the reformist journalist Isa Saharkhiz.  But neither of the leading reformist politicians, Mirhoseyn Musavi and Mehdi Karrubi, has been released, even after the Justice Minister Mostafa Purmohammadi had said on 10 October that their house arrest was being reviewed.  By the end of October, Purmohammadi was saying that he didn’t intend to interfere in the matter.

    It may also be symptomatic that, according to Amnesty International, there has been a surge in executions since Rowhani came to power, with some 265 executions in the past three months.

    In another sign of the reformists’ lack of traction, while two banned reformist newspapers, Hammihan and Neshat, were allowed to begin publishing again in late October, the ban on Hammihan was quickly re-established on 4 November.  Another reformist paper, Bahar, has also been banned.

    Sources say that these bannings are more a reflection of Rowhani’s inability to control the hardliners than of his own true inclinations, but in a sense that is an unimportant distinction because as time goes on, and progress is not made, Rowhani’s own credibility is beginning to fade.  And the hardliners have one thing on their side: the public is not greatly in favour of nuclear concessions as this is a question of national pride.  However, the public does want economic advancement – and so far Rowhani has been unable to deliver, which in turn is weakening him even though the key problem is that he is not being given a free hand in the negotiations to raise sanctions.

    Rowhani made a rash election pledge when he said: “We pledge to the people that, in the first 100 days or even less, we will take necessary and urgent action with regard to the economy and inform people of the result.” 

    He has not been able to deliver on this, or not much.  The value of the rial against the dollar may have bounced back 20%, but it had fallen by 50% in the 12 months before his election.  Inflation is running at 40%, and youth unemployment (that is unemployment among those aged 15-29) is up to 26% according to official statistics.

    Against this grim background, and in view of the lack of likely progress on lifting sanctions, by 4 November Rowhani was forced to dampen expectations, saying: “We should constantly emphasize that one should not expect all the issues to be resolved in a short period of time.”  He is now saying that he hopes “to take the first step for resolving problems by the end of the year”, which in Iranian terms is March 2014.

    The Israelis, more than anyone, are aware of the pressures that are mounting within Iran for economic advancement, and they are urging the US to use this as a lever to extract the maximum concessions over the nuclear question.  Israel’s Prime Minister Binyamin Netanyahu made this point publicly on 12 November at ‘Fuel Choices’ summit arranged by Bloomberg.  He said of the talks in Geneva: “The proposal that was put on the table, the details of which we are familiar with, is a bad deal.  It leaves Iran with nuclear capabilities for military objectives, and provides it with a significant easing of sanctions.  The additional danger is that it gives Iran legitimacy to be a nuclear threshold state.  That goes against the interests of the international community.”

    He then added: “With every passing day, Iran is under growing economic pressure.  One need not be hasty to conclude a bad deal.  The time must be utilized for a good deal which dismantles Iran’s military nuclear capabilities.”

    Against that, however, those in the Obama administration who sense a chance for the beginning of an historic reconciliation with Iran are fearful of losing Rowhani if he is unable to deliver on his economic pledges, so they are using that as an argument for a quick deal.  Netanyahu’s response to that proposition is that they will lose Rowhani anyway as, once a (bad) deal is done, it is the hardliners who will inherit the benefits.  The view of the Gulf Arabs, on the other hand, is that Iran is equally dangerous whether in the hands of hardliners or reformists and the only safe (for them) solution is to keep Iran in indefinite isolation.  JdeC.

    NOTE: There has been an increase in attacks and assassinations of officials by Sunni Baluchi rebels in the south-eastern Iranian province of Sistan-Baluchistan.  The most recent incident was the assassination of the prosecutor in the town of Zabol on 6 November.  Two weeks earlier, on 25 October, rebels attacked an Iranian border post and killed 14 border guards.  In retaliation, Iran executed 16 imprisoned rebels.

    The group responsible for the latest attacks is the Jaishhuladi, a Sunni rebel group.  It said that the assassination in Zabool was a retaliation for the execution of the 16 prisoners.  In the recent past it has also set ambushes to kill members of the Islamic Revolutionary Guards Corps (IRGC).

    The Iranian authorities have said the rebels are backed by the US, Israel, Pakistan, and “reactionary” Arab countries.  The presidential adviser for tribal affairs and religious minorities, Hojjat ol-Eslam Ali Yunesi, says: “These assassinations are a continuation of terrorist operations by Salafi groups affilliated with al-Qaeda and supported by the enemies of the Islamic Republic of Iran.”  Iran’s Deputy Interior Minister Hoseyn Ali Amiri has also said that Saudi Arabia could have been involved in the killing of border guards by the Baluchi rebels.

    The suggestion of Saudi Arabian complicity has added resonance because of the strong Saudi objections to the incipient reconciliation between Iran and the US.

  • Iraq raises water question as Turkey tries to mend bridges

    LatinNews 13 November 2013 Hits: 605

    We looked last week at Turkey’s moves to mend fences with Iraq and Iran.  We quoted  a source in Ankara as saying: “There are clear signs that the situation has begun to get better with Iran and Iraq…Turkish diplomacy is opening a new page in its relations with Iran and Iraq.”  Turkey’s Foreign Minister Ahmet Davutoglu duly arrived in Baghdad on Sunday (10 November) to pursue this agenda, but it was noticeable that he was by no means given an easy ride.  Even the contentious issue of water was raised.

    Davutoglu’s desire for better relations with Iraq was made as clear as it could be with a number of highly symbolic gestures.  He visited the Shia holy town of Najaf, and in order to demonstrate his mourning for the killing of Imam Hussein, which is commemorated during the month of Muharrem, the Turkish foreign minister wore a black shirt and a green tie.  He also held talks with two prominent, and politically important clerics: Ayatollah Ali al-Sistani and Muqtada al-Sadr.  And in his talks with Prime Minister Nuri al-Maliki and Foreign Minister Hoshyar Zebari, Davutoglu sought to play down differences over Syria, saying they were “not major”.

    However, it was interesting to see al-Sistani raising the question of water.  A source involved in the talks said: “Al-Sistani complained about Turkey’s cutting of the flow of the water into Iraq and Turkey’s construction of dams on [the Euphrates and Tigris rivers].”

    Al-Sistani reportedly told Davutoglu that Iraqis were suffering from water shortages and that if bilateral talks failed to solve the problem then it should go to UN arbitration.  Beyond the water question, the two mostly discussed how to avoid sectarian conflict between Sunni and Shia Arabs in the region.

  • Pressing on with the Chavez revolution

    LatinNews 13 November 2013 Hits: 524

    Hugo Chavez’s successor, President Nicolas Maduro, is continuing his push towards an even more authoritarian system.  Sources in Caracas say that his aim could be to turn Venezuela into a Cuban-style command economy in which all economic decisions are centrally planned and controlled by the government.

    The latest indication of Maduro’s intent came on 12 November with the stripping of an opposition deputy of her parliamentary immunity over corruption allegations.  The deputy in question, Mercedes Aranguren of the small dissident Movimento Independiente Ganamos Todos (Migato) says the charges are trumped up and politically motivated.  True or false, this move makes it likely that the ruling PSUV will gain the three-fifths majority it needs to approve a law that would give the president the right to rule by decree for 12 months.  These additional powers would be added to his already existing control of the national assembly, the judiciary, the regulatory agencies, the armed forces, and most of the media.

    The text of the enabling law was revealed on 15 October.  It fails to identify which Venezuelan laws the president can amend by decree, and it potentially gives Maduro effectively autocratic powers to implement the third and final stage of the “transition to socialism” as outlined by Chavez in his final 2013-19 government plan. 

    On 6 November, Maduro unveiled a package of additional measures imposing tighter central government controls over the domestic market for consumer goods.  This is being overseen by the new superior council for the defence of the economy (unveiled on 12 September to ‘guarantee the economic security of Venezuela’), run by a military officer, Hébert García Plaza; along with the vice-president for economic affairs, Rafael Ramírez, who doubles as energy minister and president of the state oil company Petróleos de Venezuela (Pdvsa).

    While the government accuses the opposition and the private sector of economic ‘sabotage’, particularly hoarding, price speculation, and abuse of the officially-controlled foreign exchange market to earn arbitrage profits, the opposition claims that individuals and companies linked to the Revolution are the worst offenders.  This week there were fresh opposition calls for the government to publish the list of companies assigned foreign exchange, so that the general public can see for itself what’s going on.

    Opposition leader Henrique Capriles Radonski has also accused Maduro of negotiating ‘secret deals’ in a desperate bid to shore up the country’s foreign reserves (down to US$21bn as of 11 November) and cover its FX needs.  He alleged that the government is selling off central bank (BCV) gold reserves and Pdvsa holdings in the likes of the US oil company Citgo and negotiating credit deals with suppliers.  Pdvsa has announced a plan to sell US$4.5bn in bonds, its first issue since May 2012.  Sources suspect the notes could be sold in a private placement to the BCV for currency auctions, as well as to oil service providers to pay off debt.

    A final thought on Maduro’s latest power grab is that it may reflect more of a need to overcome divisions within the Bolivarian Revolution rather than opposition from without.  In short, what is going on is most likely a continuation of the fierce internal power struggle that was set off by the death of Hugo Chavez on 5 March.

  • Risk pointers

    LatinNews 13 November 2013 Hits: 377

    *** Security concerns mount ahead of Sochi Winter Olympics.  Russia is to host the Winter Olympics from 7-23 February in the Black Sea resort of Sochi.  From a security point of view, the locality is dangerously close to the rebellious North Caucasus region.  The 21 October bombing of a bus in the southern Russian city of Volgograd has, in particular, raised fears of further attacks in the run-up to the Games. 

    The danger has been well flagged by the rebels themselves.  In July the leader of the self-proclaimed jihadist state in the North Caucasus, Dokka Umarov, issued a video in which he called on jihadist rebels to disrupt the Winter Olympics in retaliation for “barbaric” Russian policies in the region.

    Russia’s President Vladimir Putin responded to the threat by issuing a decree in August under which, for two months, only vehicles with a special permit would be allowed to enter Sochi.  Mass rallies in Sochi were also banned.  In a further sign of Russian concerns, on 31 October it was reported that Russia has begun taking saliva samples from religiously conservative Muslim women so as to better aid identification in the case of suicide bombings undertaken by women.  Then, on 3 November, Putin approved a further set of anti-terrorism laws under which the relatives and acquaintances of those who carry out suicide bombings will have to pay damages. 

    In a further sign of Russian concern (or preparation) while security operations in the North Caucasus carried out by the Russian security services in 2012 was down to 599 from 648 in 2011, this figure rocketed to 990 in the first 10 months of 2013.  Umarov, however, remains at large.

    *** Al-Qaeda threat to French citizens in Mauritania.  On 7 November, Al Qaeda in the Islamic Maghreb (AQLIM) issued a video in which it threatened to target French and other Western interests in Mauritania.  The video said that “the war against France and its allies continues and AQLIM will emerge victorious”. 

    This was followed by jihadist Habib Elmouritani promising to kill French citizens in the Mauritanian cities of Nouakchott, Kaedia, and Seilibabi.