Courcy's Intelligence Brief - 20 November 2013

Items

  • The Mideast crying out for American leadership

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    The headlines from the Middle East are becoming more apocalyptic by the day.  The latest deadly news to capture the headlines was the 19 November bombing of the Iranian embassy in Beirut by an al-Qaeda affiliate, which sparked headlines of a coming Mideast-wide catastrophe.  The Times of London was not alone in suggesting that “the bombs in Beirut might be the catalysts for an ideological struggle [between Shia and Sunni Islam] that could devastate global Islam”.

    We would not disagree with the proposition that events in the Middle East could be moving towards uncontrollable mayhem.  There is civil war, or near civil war, or the potential for civil war in all of Iraq, Syria, Lebanon, Egypt, and Libya, not to mention Yemen, Sudan, and Somalia.  There is also the potential for inter-state war between Israel and Iran.  Then there are the unfulfilled national ambitions of the Palestinians and Kurds that still have to be resolved.  And all this is happening at a time when the United States is trying its hardest to avoid any further military engagements in the region.

    When contemplating this desperate mess, it is helpful to return to basics - to understand cause and effect.  Many have made the point that the key destabilizing action was the 2003 invasion of Iraq and the removal from power of the minority Sunni Arab regime of Saddam Hussein and, with it, the principal barrier to increasing Iranian influence.  That, however, is only partially true.

    The removal from power of a brutal dictator representing a minority community and with a history of aggression against his neighbours cannot be categorized as all bad.  The real problem is that while the Sunni-minority regime in Iraq has been overthrown, the Shia/Alawite-minority regime in Syria has been left in place.  It is that imbalance that has frightened, above all others, Saudi Arabia while emboldening Shia Iran.

    Now the fact that all this is being followed by what appears to be a serious US move towards rapprochement with Iran has multiplied the adverse effects (of frightening Riyadh and emboldening Tehran).

    This service is not a natural supporter of interventionism; where possible we believe in local solutions to local problems.  But the dangers in the Middle East have become so great that we are now of the view that nothing will improve until the Assad regime is removed from power, thereby ameliorating Saudi Arabian fears of Iranian encirclement.  The worst possible outcome is the one that is now being contemplated, namely to reach an accommodation with Iran while leaving Assad in power.

    The message of the 19 November bombing in Beirut is that the Sunni Arabs will not allow this without a serious fight.

    The reaction in Saudi Arabia to the Beirut bombings was instructive.  A commentary in Asharq al-Awsat, for instance, while not quite approving of the bombing noted: “Iran and its allies in the region believe that they can play with fire without getting burnt.  That is certainly a mistake.”  The fact that there is any level of approval in Saudi Arabia for the Abdallah Azzam Brigades, the Sunni jihadist group that perpetrated the bombings, is a sign of the level of Saudi desperation.  In the past the Abdallah Azzam Brigades have called for the overthrow of the Saudi government.

    Israel’s concerns are slightly different.  It is not, for instance, overly concerned by the Assad regime.  It has, after all, lived in a no-peace, no-war stand-off with the Assad regime since 1973.  Nor is Israel particularly concerned by Arab internecine strife.  Its greatest post-Arab Spring concern was that powerful Muslim Brotherhood regimes could be established in both Egypt and Syria, possibly to be followed in time by Jordan, thus re-establishing the threat of encirclement by hostile Arab nation states.  That threat has now all but disappeared, and the further disintegration of previously united Arab states is not a concern to Israel.  But Iran is, and the threat of a nuclear-threshold (if not nuclear-armed) Iran has, if anything, increased since the election of President Hassan Rowhani in the summer.

    Where Israel is at one with Saudi Arabia is in sharing a belief that the Obama administration is (in the words of the Saudi daily al-Watan) “soft to the point of spinelessness”.

    One of the most dispiriting bits of intelligence to emerge from the Middle East in the past week was the suggestion that “advisors close to Obama” are keen to reach an interim deal with Iran over its nuclear ambition so that the problem can be pushed on to the next administration.  Given the current state of Mideast tensions, this would seem to be a woeful abnegation of power – and it is why Israel has been stepping up once again its suggestions that it can tackle Iran on its own.

    During the past week Deputy Foreign Minister Zeev Elkin has backed recent statements by former national security adviser Yaakov Amidror and Economy Minister Naftali Bennet arguing that Israel has the capability to stop Iran’s nuclear programme on its own.

    Israel’s influential Institute for National Security Studies (INSS) has also recently issued a paper arguing that Israel has little to fear from Iranian retaliation provided that Israel confines its attacks to Iranian nuclear facilities.  The key point for INSS is that the main Iranian interest is regime survival and so it would have to consider carefully whether any response to a unilateral Israeli strike would increase the threat to its existence by sparking a sharp escalation.  The INSS says that “the regime would seek to respond without causing escalation and significant American intervention in the crisis”.

    The same would apply if the US were to be involved in the initial strike, argues the INSS.  It says: “If Tehran’s assessment is that the United States is limiting its attack to Iran’s nuclear infrastructure and that it is likely to broaden its attack against the regime only in response to an Iranian response, the chances would increase of Iran exercising restraint in order to avoid escalation that would threaten the survival of the regime”.

    The point of all these Israeli comments and commentaries is to re-establish belief (in Tehran and elsewhere) in an Israeli military option against Iran’s nuclear programme.  For what it is worth, our own sources are certain that the key policymakers around Prime Minister Binyamin Netanyahu believe in this option and would, if necessary, use it.

    In summary, therefore, what we are now faced with in the Middle East is a widening and intensifying sectarian war between Sunni and Shia, with Saudi Arabia likely to step up its support for Sunni groups that are anathema to the United States in order to counter Iran.  At the same time Israel is moving closer to considering a unilateral strike against Iran’s nuclear facilities if it is not satisfied with the outcome of the present 5+1 talks to neutralise Iran’s nuclear programme.

    The key to halting this downward spiral is held by Washington.  It has to re-establish Saudi Arabian belief in its determination to rid Syria of the Assad regime – and thereby empower Syria’s Sunni  Arab majority – and it has to re-establish Israeli and Saudi Arabian trust in its determination to prevent Iran from becoming a nuclear-threshold state.  Unfortunately, the impression in the Middle East is growing that the Obama administration is determined on only one thing: to get through its second term without engaging in further military action in the Middle East.  But nothing will improve without far stronger American leadership (which, in extremis, might entail military action); and, in its absence, much will get worse, even much worse.  JdeC.

    NOTE: On 20 November, on the eve of the resumption of nuclear talks in Geneva, Iran’s Supreme leader Seyyed Ali Khamenei launched a fierce verbal attack against both the US and Israel.

    In a speech to commanders of the paramilitary Basij in Tehran, Khamenei attacked Israel for saying that Iran was a threat to regional peace.  He said: “Such statements are being made by the mouth of the filthy rabid dog of the region, the Zionist regime.  Those who had nothing for the world but evil things are the real threat to the world, such as this illegitimate regime.”

    Khamenei added that Israel was a “regime created by force” and that it is “doomed to annihilation”.

    The Supreme Leader also said that he had told Iran’s nuclear negotiators that “there are red lines, some limits” and that these limits “should be observed”.  He added: “I have told officials that they are obliged to consider the limits and not be afraid of the fuss made by the enemy.”  They should not give up Iran’s nuclear rights “even by one iota”.

    Finally, Khamenei said that “the Iranian nation will not surrender under pressure from anyone.”

  • Escalation in Yemen

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    Yemen is another escalating front in the proxy war between Saudi Arabia and Iran, with Iran backing the rebellion by the Shia Huthi movement in the northern Yemeni governorate of Sadah.  In the past month, at least 100 people have been killed in fighting, and it has been reported in the past 24 hours that the fighting has resumed with perhaps a further 20 people being killed.

    The latest fighting in the town of Dammaj has been between the Huthi rebels and Salafists rather than government troops.  The problem is that Dammaj is home to an important Salafist educational establishment which has more than 12,000 students from elsewhere in Yemen.  There are also foreign Salafist students in Dammaj, and it has been reported that nationals from France, Russia, Canada, and China died in recent fighting.

    The Huthis say that there are more than just foreign students in Dammaj.  They say there are up to 7,000 jihadists with experience of fighting in Afghanistan, Bosnia, and other jihadist hotspots.  The salafists, in return, say that the Huthis are receiving weapons and other support from Iran.  On 12 November, nine people were convicted in Aden of trying to smuggle in 40 tons of weapons and ammunition from Iran.

    After fighting broke out in early November, Al-Qaeda in the Arabian Peninsula (AQAP) issued a statement by spokesman Shaykh Harith Bin-Ghazi al-Nazari declaring “total solidarity” with the people of Dammaj and promising revenge against the Huthis.  But if AQAP is engaged in the fight against Iranian-backed Huthis, it also continues to be targeted by the US.  On 19 November, three presumed AQAP militants were killed by a US drone attack in Hadhramaut Governorate.

  • France casts jealous looks at UK's monetary independence

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    The left in France has long been dismissive of the UK, and in particular of the UK’s euro-scepticism, but there are signs that the UK’s faster recovery from the global financial and economic crisis that began in 2008 is beginning to attract some jealous attention.  On 17 November, in little noticed remarks made while speaking to the media about his new book ‘The Battle of Made in France’, France’s Industry Minister Arnaud Montebourg praised the policies of the Bank of England and clearly indicated his preference for these policies over those of the European Central Bank.  The point he didn’t make, but didn’t need to, is that France cannot follow such policies itself because it has surrendered control of monetary policy to the ‘one-size-fits-all’ remit of the European Central Bank.

    Speaking about Britain’s policy of combining budgetary cuts with quantitative easing, Montebourg said: “It’s not entirely a policy of austerity.  It’s a tough policy in budgetary terms and that is what we need in Europe.  We are, ourselves, in favour of budgetary seriousness.  Paying our debts is the normal thing to do.  On the other hand, we need a European Central Bank that follows the example of the Bank of England, which, as I recall, makes out cheques for billions of pounds to Mr Osborne [Britain’s Chancellor of the Exchequer].”

    This comment deserved more attention than it received for three reasons.  The first, of course, is because any wobbling in commitment from France towards the euro-project would be far more serious than happenings in Greece, or even Italy.  The second is because Montebourg’s remarks reflect a growing panic in Paris and cannot be dismissed as isolated and unimportant.  The latest example of the Hollande administration’s panic is its move to overhaul France’s tax system in response to an ecotax revolt in Brittany which could yet turn into a nationwide tax rebellion.

    The third reason is the spectre of a surge of support for the extreme right in the May 2014 European elections following the announcement last week of a new alliance between the Netherlands’ Party for Freedom, led by Geert Wilders, and France’s National Front (NF) led by Marine Le Pen.  The NF took 18% of the vote in the election that elected Hollande in 2012.

    Other extreme-right parties have been growing in popularity, with the neo-Nazi Golden Dawn receiving 7% of the vote in the 2012 Greek election and the Austrian Freedom Party gaining 20% in 2013.  In addition to the extreme right, more mainstream anti-EU parties such as the UK Independence Party (UKIP) are likely to poll well in May 2014.  The True Finns party won 19% of the votes in Finland’s 2011 general election.

    Immigration is a key factor, as is general disillusionment with the European political elite and of course economic frustration.  The problem for the Hollande administration, as suggested by Montebourg, is that too many of the key policy levers are now out of its reach.  The crisis for the Hollande administration could become a crisis for Europe.

  • Risk pointers

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    *** Ethiopia and Sudan struggle with returnees from Saudi Arabia.  On 4 November a deadline expired in Saudi Arabia for the formalization of the status of migrant workers.  On 13 November, the first group of Ethiopians returned home from Saudi Arabia following clashes with security personnel over the weekend of 9-10 November.

    On 14 November, Ethiopia’s opposition Blue Party called for “a nationwide protest against the abuse, torture, and murder” of Ethiopians in Saudi Arabia.

    On 15 November, it was reported that 10,000 Sudanese had returned home from Saudi Arabia following the expiration of the 4 November deadline.  Apparently as many as 300,000 Sudanese had failed to formalize their status.

    *** China’s lack of charity.  Much has been made of the paltry amount of money donated by China to the Philippines following Typhoon Haiyan.  Its initial response was to donate $200,000, which was then increased to $1.64m in the form of blankets, tents, and other goods.  This, it was pointed out, was still substantially less than the $2.7m donated by the Swedish furniture chain Ikea.

    The paucity of China’s response, however, is not just a reflection of government policy, it is also a reflection of popular opinion.  An online survey conducted on 14 November found that 84% of respondents were against providing assistance to the Philippines.  The US and Japan respectively offered immediate aid of $20m and $10m.

    *** Israeli opinion on Iran.  According to an opinion poll published on 15 November, over half of Israelis (52.1%) support Prime Minister Binyamin Netanyahu in his disagreements with the US over Iran, and 65% believe that Israel should oppose a deal which would ease sanctions in return for a reduction in its nuclear capabilities.  Only 16.1% support such a move.  Netanyahu’s approval rating stands at 41.5% against opposition leader Shelly Yachimovich’s 10%.