Courcy's Intelligence Brief - 17 August 2011

Items

  • Iran moderating at home but keeping hardline abroad

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    Our intelligence sources say that the speech made by Iran’s supreme leader Ayatollah Ali Khamenei on 8 August, shortly after the start of Ramadan, provides two important pointers on current thinking in Tehran on the Arab revolutions.  The first is that Iran is more worried about the domestic impact of these revolutions than has widely been supposed.  The second, on the other hand, is that Tehran believes it has more to gain by maintaining its hardline foreign policy despite the growing Sunni animosity throughout the Middle East towards the Shia and Iran.

    In his 65 minute speech, Ayatollah Khamenei repeatedly called for domestic reconciliation, saying: “Regarding those people who separate from the community of Muslims, who distance themselves from the country, try to bring them closer, bring them in.  Those who are half way up the path, bring them home.”

    He added: “You shouldn’t allow people who have a loose connection to the establishment to become completely disconnected.  Those who are half way up the path, draw them in.”

    Khamenei also castigated those within the establishment who indulge in factional in-fighting, saying: “Differences between collectives, between groups, between organizations are [as bad as] burning fires.  Everyone should try to extinguish these fires, not to pour oil on to them.”

    The speech supports intelligence that Khamenei is trying to isolate hardline President Mahmud Ahmadinezhad.  Although Khamenei made a few congratulatory comments about the achievements of Ahmadinezhad’s government, they were perfunctory and very minor in relation to the rest of the speech.  But before anyone gets too excited about signs of incipient moderation, intelligence sources say that the Iranian leader’s intention is to draw in centrist supporters of former presidents Akbar Hashemi Rafsanjani and Mohammad Khatami at the expense of the democratic opposition, not to move towards the democrats.

    The foreign policy section of Khameini’s 8 August speech was, if anything, even more significant.  He criticized the attempts by both the Rafsanjani and Khatami administrations to improve relations with the United States, and he appeared to defend Ahmadinezhad’s aggressive approach against the moderates who are arguing for a more nuanced foreign policy.

    Khameini said: “I don’t agree with the view that we have a negative international position.  On the contrary, our international position is very good.  Today the Islamic Republic is a respected, effective, and influential country.”

    That Khamenei, on the foreign policy front, is involved in an exceedingly high-stakes game can be seen from a recent Arab-American Institute Foundation poll on Arab attitudes towards Iran.  The poll was conducted in June, and the recently published results show how calamitously Iranian influence in the Arab world has declined since 2006.

    Iran’s favourable ratings in key Arab countries in 2006 were 82% in Morocco, 89% in Egypt, 75% in Jordan, 85% in Saudi Arabia, and 68% in the United Arab Emirates (UAE).  This has fallen dramatically to 14% in Morocco, 37% in Egypt, 23% in Jordan, 6% in Saudi Arabia, and 22% in the UAE.  By contrast the favourable ratings for non-Arab Turkey in the same countries are now 80% in Morocco, 64% in Egypt, 45% in Jordan, 98% in Saudi Arabia, and 62% in the UAE.

    The only country polled (Syria was not amongst the sample) that shows a favourable rating towards Iran is Lebanon, where 84% of Shias have a favourable view of Iran, 55% of Sunnis, and 48% of Christians.
    What is so significant about these findings is that they reflect the views of the Arab street, not of the rulers, and it is to the Arab street that Iran has always sought to appeal through its hardline rejection of Israel’s right to exist and its support for the Palestinian cause.  Clearly this tactic either no longer has the resonance it once did, or (our view) it is simply outweighed by the negative impact of Iran’s support for the minority Shia Arabs and by fears of its nuclear ambitions.

    Yet Khameini, who is compromising at home, is sticking to the hardline stance abroad.  This is a gamble, but a rational one.  He believes that Iran now has the upper hand in Iraq and that it has as much support as ever in Lebanon.  If Iran can just enable President Bashar al-Assad to survive in Syria (and no one in the West has the appetite for a military intervention on behalf of the Syrian Sunni rebels) then the Iranian-led ‘Shia Crescent’ so much feared by King Abdullah of Jordan will be entrenched from Iran through Iraq and Syria to Lebanon.  This will make Saudi Arabia and the other Gulf Arab states even more fearful of Iranian influence in Bahrain and eastern Saudi Arabia and possibly more quiescent.

    There is also every chance that Iran can establish close relations with a Muslim Brotherhood ruled Egypt.  As shown above, the favourable rating for Iran in Egypt is 37%, and although massively down from 2006 it is not negligible and is much higher than in other Sunni Arab states.  Egypt has been putting out friendly feelers to Iran since the fall of Mubarak, and if (as seems highly likely) it continues to move away from Israel and the Camp David accords Egypt will have a natural affinity with Iran.

    Turkey is a potential problem, particularly since it has turned on Assad in Syria.  But Iran believes it can use Turkey’s Kurdish Achilles Heel to modify views in Ankara.

    Iran will also have taken heart from the vacillating in Israel over what to do about Iran’s nuclear programme.  The threat of an Israeli pre-emptive strike seems to have receded for now – and, besides, an Israeli strike would surely only boost Iran’s approval ratings in the Arab world.

    There are some well-placed and influential experts in the West and Israel who are argung that Iran is in trouble and that it will be the inevitable loser of the Arab Spring, and Khameini’s speech does indeed suggest that he also knows that these are dangerous times for Iran.  But Khamenei is not necessarily wrong in thinking that a hardline foreign policy could still deliver immense rewards if only Iran can hold its nerve, save Assad, and find a way to defuse opposition at home.  Khamenei believes, and is probably right, that this is not a time to show weakness.

    Any assumption that Iran will emerge as the big loser from the Arab Spring is at the very least premature and quite probably entirely wrong.  It could yet emerge with its regional influence significantly enhanced, at the head of a Shia crescent stretching from Iran, through Iraq and Syria, to Lebanon and allied in hostility to Israel with a Muslim Brotherhood-controlled Egypt to the south. JdeC.

  • The Sunni scenario

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    In our main briefing today we examine Iran’s strategic aims for the Middle East, in particular its vision of consolidating an Iranian-backed Shia crescent from Iran through Iraq and Syria to Lebanon which would be aligned with a post-Mubarak Egypt in hostility to Israel.  That powerful forces in the US and Israel are determined to prevent this outcome is certain.  But their alternative vision is not necessarily as comforting as some imagine.

    The development that the US wants to exploit is the burgeoning division between Sunni and Shia Arabs with a view to  excluding Iranian influence from the Arab Middle East.  Washington believes that there is a deal to be done with moderate Sunni Islam in Egypt, Syria, Iraq, Jordan, and the Palestinian territories; and in particular it believes that if Syria’s President Bashar al-Assad falls and is replaced by a Sunni Arab regime then the ‘axis of evil’ between Iran and the Shia Hezbollah in Lebanon will be greatly weakened.  It also believes that the link between Iran and rejectionist Sunni groups such as Hamas in the Gaza Strip can be broken by doing a deal with the Muslim Brotherhood.

    The problem with this vision is that it underestimates the point that Sunni Islam is as opposed to Western influence in the Middle East – and to Israel – as Shia Islam.  The same Arab American Institute Foundation poll that we refer to in this week’s main briefing shows that if Iran’s popularity among Sunni Arabs has plummeted, the position of the United States is even worse.

    In Morocco, the unfavourable rating for Iran is 85%, but for the US it is an even bigger 88%.  In Egypt, the Iran/US unfavourable rating is respectively 63%/95%; in Lebanon it is 37%/77%; in Jordan 77%/88%; and in the United Arab Emirates 70%/77%.  Only in Saudi Arabia does the unfavourable rating for the US (68%) come below that for Iran (80%), and even that is hardly comforting given that over two-thirds of Saudi Arabians view the US unfavourably.  Asking the same question about the relative merits of Iran and Israel would be pointless.

    The danger in the Obama administration’s apparent policy of trying to strike a deal with moderate Sunni Islam is obvious.  But that the White House is in a muddle is not a surprise given that the Israelis are in an equal muddle over what to do.  Despite all the dangers, there are many in Israel who see less danger in the survival of the pro-Iranian Assad regime in Syria than in its replacement by a Muslim Brotherhood regime allied to Egypt and the Islam-based AKP government in Turkey.  Should Assad fall, the best idea that Israel can come up with is to exploit the differences between Sunni and Shia to weaken both.

    We have previously looked at Israel’s growing support for the (Sunni but non-Arab) Kurds as a way of undermining Turkey and Iraq; now there are suggestions that in a post-Assad Middle East, Israel could try to form an ‘alliance of minorities’ that could encompass not just the Jews and Kurds but the Shia Arabs as well.  It seems inconceivable that the hardline anti-Israeli Shia/Alawites of Lebanon and Syria would embrace such a concept, but faced with marginalization (and worse) from a resurgent Muslim Brotherhood anything might be possible.

    If nothing else, the very fact that such a scenario is being talked about in Israel serves to emphasize just how unstable and unpredictable the Middle East has become.  If, as seems certain, the liberal-democratic element within the Arab Spring is destined to be marginalized, then there are no good outcomes.

  • Japan tells China: sovereignty before trade

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    Despite China’s remonstrations against the tone of Japan’s 2011 defence white paper (see 3 August Courcy’s Intelligence Brief), Japan shows no signs of backing down – and it has also made it clear to Beijing that the beguilement of China’s markets will not deflect Japan’s determination to protect its territorial sovereignty.

    As we reported in our 3 August issue, China responded to the publication of Japan’s 2011 defence white paper by expressing its “strong dissatisfaction”.  On 3 August, Foreign Ministry Spokesman Ma Zhaoxu complained: “The Japanese 2011 defence white paper made carping and irresponsible comments on China’s national defence construction.”  He also then made the standard reference to Japan’s history of aggression, saying: “I hope Japan can learn from the past, seriously reflect on its own defence policy and do more to deepen mutual trust with neighbouring countries, maintain regional peace and stability, not the contrary.”

    But that Japan will not back down in the face of Chinese anger was made clear by Chief Cabinet Secretary Yukio Edano on 11 August.  The day before, on 10 August, Edano had told a committee of Japan’s upper house of parliament that Japan was prepared to despatch the Self-Defence Forces to defend the Senkaku Islands in the East China Sea if threatened by a foreign power.  The islands, known as Diaoyu by China, are claimed by both China and Taiwan but controlled by Japan.

    On 11 August, Edano was asked to clarify Japan’s position, and he replied: “It is expected that economic ties, especially with Japan’s neighbouring countries, would be damaged seriously, but we should give priority to defending our land and territory.  What I meant was that Japan would exercise its right to self-defence if such a situation occurs.”

    Japan’s new National Defence Programme Guidelines (NDPG) state that Japan will develop a ‘Dynamic Defence Force’ to “prevent direct threats to Japan from reaching the country”, including responding to attacks on an offshore island, and they say that “in order to handle an increasingly challenging security environment, Japan needs to steadily build an appropriate-size defence force”.

    Japan has also responded to the launching for sea trials of China’s first aircraft carrier – the Varyag – by saying that the launch will “have a big impact on the region”.  Speaking on 12 August, Defence Minister Toshimi Kitazawa added: “We will keep an eye on it with a sense of wariness.”

    Taiwan response to the Varyag’s launch was even more forthright.  On 10 August, Taiwan’s military displayed a model of its HF-3 anti-ship missile at a local defence exhibition against the backdrop of a burning aircraft carrier that looked very like China’s latest naval acquisition.  Next to the burning carrier were the Chinese characters for “carrier killer”.

    China, fairly it would seem, has played down the launch of its first aircraft carrier by pointing out that the US, Japan, and India will respectively have 11, two, and three aircraft carriers by 2014 while China will have just one.  Nevertheless, it does seem to be excessively coy about its newest military asset.  According to sources in Hong Kong, officers from China’s Ministry of State Security have even arrested innocent military enthusiasts who have been following the progress of the Varyag.   A number of journalists interested in the launch were also detained by State Security.

  • Risk pointers

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    *** Israeli hawks eye Sinai.  In our 3 August issue, we looked at Israeli reactions to the fifth attack in the last six months on the Sinai pipeline carrying gas to Israel.  The attacks on the gas pipeline have coincided with an increase in the smuggling of weapons into the Gaza Strip.  It is thought that the number of rockets in the Gaza Strip has increased from 5,000 to 10,000 since the end of 2010, and it is estimated that there has also been a sixfold increase in the amount of smuggled explosives.  As we reported, the assessment of Israeli intelligence is that Egypt is “losing control over the Sinai region”.

    The assessment that Egypt is losing control of the Sinai was reinforced by the 29 July attack by 150 masked men on a police station in the Sinai city of Arish.  The masked men, thought to be al-Qaeda operatives, raised black flags and took control of the city for six hours, during which time seven people were killed and 30 injured.

    Israeli hawks say that Israel now has three choices: watch Sinai becoming a haven for al-Qaeda and other extremists; allow an increasingly hostile Egypt to remilitarize the peninsula in order to re-establish control; or for Israel to retake control of the region itself.   There is little doubt which of the three options the hawks favour.

    *** Crackdown in Xinjiang.  Following the 30-31 July bombings that killed 18 people, the Public Security Department in China’s restless Muslim province of Xinjiang has ordered a two-month crackdown “on violent criminal activities” with a view to “crushing terrorist groups, nabbing behind-the-scene plotters, and preventing mass incidents”, according to local reports.  The Zhongguo Xinwen She news agency says that police “will sternly crackdown on illegal religious activities, materials advocating violence and extremism, illegal publicity materials using electronic media, and criminal online activities”.   Police patrols are being increased in public places such as squares, rail and bus stations, markets, and shopping areas.

    *** China’s challenging demographics.  A Chinese government report issued on 16 August says that the number of Chinese citizens aged 60 or over is now 177.65m, or 13.26% of the total population.  It is estimated that the percentage of China’s population categorized as ageing will reach 17% in the next five years and 30% by 2050.  The report was produced by China’s National Working Commission on Ageing (CNWCA).

    The United Nations says that at present almost 700m people worldwide are aged 60 or above, which is still under 10% of the total. By 2050, this is expected to have grown to 2bn, which is over 20% of the world’s population.  The latest Chinese statistics suggest that China will be one of the country’s with the highest percentage of ageing people.