Courcy's Intelligence Brief - 7 November 2012

Items

  • Erdogan's 'swagger' fails to impress Germany

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    Turkey’s President Recep Tayyip Erdogan was in Berlin last week for a three-day visit.  He demanded that Turkey should be granted full membership of the European Union by 2023, and Germany’s Spiegel website talked about Erdogan “swaggering through the German capital”.  Certainly there was a swagger to the Turkish prime minister’s demeanour, reflecting his belief that the tables are turning and that a Europe in crisis is now more needful of a vibrant Turkey than in the past.  But the reaction in Germany was almost entirely negative.  There were three aspects to this.

    The first was the repetition of the long-standing view that Turkey is not a European country and is unsuited culturally to membership of the EU.  Die Welt, for instance, wrote:  “The EU is a community of values, not an educational institution.  Turkey may be experiencing an economic boom, but it is not a democratically secure country.”

    The Frankfurter Allgemeine Zeitung added: “[Turkey] would not only be more Islamic [than the rest of Europe] but also more conservative.  The majority of the Turkish representatives elected to the European parliament would certainly have no great sympathy for the alternative lifestyles that Europe has committed to protecting...The notion of a European parliament with Turkish members still requires a lot of imagination...”

    The second aspect of the German reaction to Erdogan’s demand for full EU membership in 10 years time was to say that the EU has far more pressing internal matters to deal with.  On this theme, the Berliner Zeitung wrote: “What an absurd appearance!  Europe currently has other things to do than think about new members.  Our attention is absorbed by the euro crisis.  There is a risk the EU will break up.  In this situation, those who call for the inclusion of a large, but also foreign, country like Turkey will not find much empathy.  In the current situation it is difficult for the EU to even consider making a small country like Croatia a member.”

    The financial daily Handelsbatt agreed, saying: “Europe...must first tackle the debt crisis and poor growth, high youth unemployment, and internal conflicts before it can take a serious look at Turkey.”

    Finally, there was a feeling that Erdogan’s confidence was over-played and that Turkey is still essentially a weak petitioner which can be made to wait for as long as it suits the EU.  Interestingly, this was the view taken by both the main financial newspapers – the Financial Times Deutschland and Handelsbatt.

    The Financial Times Deutschland, while acknowledging that Turkey has become much less of a beggar at Europe’s door, still sensed weakness.  It wrote: “[Erdogan’s] attempt to [make Turkey] an independent power in the Arab region has failed.  The skirmish with Syria and the diplomatic conflict with Russia have brought Erdogan to the limits of his policy to remain a good neighbour.  In the end he will have no other choice but to turn back to the political and economic centre that is Europe.”

    Handelsbatt agreed, writing: “The self-confidence that Prime Minister Recep Tayyip Erdogan showed in Berlin does not actually reflect the situation in which Turkey finds itself.  The return to Europe is due to developments in the Middle East.  Turkey oriented itself towards the east and south in an attempt to gain new prominence in the Middle East and the Caucasus.  This strategy has not worked very quickly, though.  The Arab Spring, which Turkey had seen as a welcome opportunity to present itself as an alternative model to the despots in the region, has not brought the expected awakening.  The civil war in Syria is also a brutal reminder to Erdogan that his leadership in Ankara still leaves much to be desired.  His foreign policy principle of being a 'good neighbour' has failed, also with respect to Israel.  The return to Europe is one of sober pragmatism.”

    The Kurdish question

    The German assessment that Turkey ‘s apparent strength could prove to be a mirage is in line with our own recent reports about the dangers of Erdogan’s foreign policy.  As we have highlighted in a number of recent reports, Turkey under Erdogan has gone from “zero problems with neighbours” to having almost no friendly neighbours other than Azerbaijan.  And it is hard to see what the upside is, other than a degree of US gratitude, which is not necessarily what Erdogan is seeking and is in any case limited by Turkey’s hostility to Israel.

    The downside, on other hand, is easy to discern: it is the danger of an escalation in the activities of the Kurdistan Workers’ Party (PKK) guerrillas, buoyed by the newfound freedom of action for the Syrian Kurds, the example of the deepening autonomy of the Iraqi Kurds, and support from Iran.

    The Kurdish danger is increased by what Turkish experts say is the mishandling of Kurdish affairs by Erdogan’s Justice and Development Party (AKP) government since 2009.  The mistake, they say, has been allowing the development of the Kurdistan Communities Union (KCK) in the Kurdish southeast of Turkey.  Critics of the government say that in 2009 ministers prevented the police from conducting operations against the KCK and reduced military operations against the PKK.  The government even asked PKK leaders which governors and police chiefs they objected to.

    As the Zaman daily noted this week, as a consequence of this the PKK has gone from being principally a rural organization into “a dominant political actor in major urban centres as well”.  This can be seen in the difference between the 2004 and the 2009 local elections.  For Zaman: “The AKP lost the battle against the KCK network and it is not possible to reverse this defeat now”.

    Local sources now say that the two critical municipalities of Van and Mardin will be lost to pro-PKK parties.  This, they say, is in line with the PKK’s strategy of forcing the AKP from the Kurdish region, after which the government will have to sit down and negotiate with the KCK.

    We draw two conclusions from all this.  German analysts are correct in saying that Erdogan’s swagger lacks the substance to back it up.  Secondly, as we have been saying from the start of the Arab Spring, the Kurdish question will have to be addressed seriously before this current revolutionary period has run its course - and the Kurdish cause is being greatly helped by the misjudgements of Erdogan himself.  JdeC.

  • Netanyahu and Barak seeking a mandate for war

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    The past week has provided three further important pointers to the thinking of Israeli Prime Minister Binyamin Netanyahu and Defence Minister Ehud Barak on the question of a unilateral strike against Iran’s nuclear weapons.  The first was a 31 October speech in London given by Barak to the British-Israel Communications and Research Centre.  The second was an interview given by Kadima party chairman and Knesset opposition leader Shaul Mofaz to Voice of Israel on 4 November.  And the third was an interview given by Netanyahu to Israel’s Channel 2 TV on 5 November.

    In his 31 October speech, Barak re-emphasized the point that Israel is prepared to act on its own if necessary, saying that it would not outsource its security interests “even to our closest and most trusted allies”.  He said that the State of Israel “was founded precisely so that our fate would remain in our own hands”.

    Mofaz’s 4 November interview concentrated on the excitement caused by Palestinian National Authority leader Mahmoud Abbas’s comments about possibly renouncing the right of return and settling for a Palestinian state within the pre-1967 borders.  However, for us the most interesting aspect of this interview was Mofaz’s aside about Netanyahu’s attitude towards Iran.

    We have reported many times that Netanyahu is almost messianic about the need to prevent Iran going nuclear.  Mofaz confirmed this.  Explaining why Netanyahu has not moved on the Palestinian issue, he said: “Bibi [Netanyahu] is obsessed about an Israeli strike on Iran.  It’s an obsession.  He deals with only that.  I want to tell you that in the 70 days I was in the government, more than half the meetings Netanyahu arranged with me involved attempts to persuade me to agree to strike Iran without US and Western support.”

    Mofaz added: “He’s preparing for a nuclear spring.  This is his plan.  He won’t be dealing with the Palestinian issue because it’s of no interest to him.  He has an obsession with the Iranian issue.”

    Netanyahu, himself, hardly denies this, and in his 5 November interview with Channel 2 he responded to Mofaz’s criticism by saying: “You know what's dangerous?  It's not what I'm saying, it's what Iran does.  Iran is getting closer, and we can be blind and stick our head in the sand.”

    He also made much the same point as Barak about Israel’s willingness to act alone.  He said: “If we can bring about US action or a situation where there's no reason to act - because the sanctions...are working - that's excellent.  But the question we need to ask, as Jews, is about the time when we had no state and no army.  When someone threatened to exterminate us, and acted in practice to exterminate us, we went to beg others.  So today we're not begging - we're preparing.”

    He also emphasized that he was prepared, if necessary, to act without US approval.  He said: “When Ben-Gurion declared the state's establishment, was it with US agreement?  When Levi Eshkol was forced to act in order to remove the chokehold around our neck before 1967, was it done with US agreement?  If someone sitting here, as the prime minister of Israel, cannot act on issues that are cardinal for the state's existence and for ensuring its future and security, and if he only relies on the agreement of others, he's not worthy of leading.”

    Finally, Netanyahu was asked: “Can you pledge, Mr Prime Minister, that if you are elected again, Iran will not have a nuclear programme by the end of your next term in office?”.  He replied, without further elaboration or equivocation: “Yes”.  It is important to note that his pledge was to stop Iran’s nuclear programme, not just to prevent it acquiring a nuclear weapon.

    Much has been made in recent says about the report that the military and intelligence top brass prevented Netanyahu launching a strike against Iran in 2010.  But Netanyahu is returning to the electorate on 22 January, and there is no ambiguity at all about his approach to Iran.  If the electorate renews his mandate, then the top brass will have to fall in with his wishes.

    Note: In his 31 October speech in London, Barak said that Israel will take military action should it identify an attempt to transfer Syrian chemical weapons to terrorists.  He said: "Taking into account the warm ties between Hezbollah and Syria, I have instructed the IDF to closely monitor the possible transfer of advanced weapons systems and Assad's chemical arsenal into Lebanon.  We will take any necessary action to prevent this.”

    He also referred to the changes in Egypt, warning that “the Muslim Brotherhood regime provides a tailwind for Hamas in Gaza and extremists in Jordan".

  • Communist surge in Ukraine

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    We looked last week at the increased support in the 28 October Ukrainian election for the far right Freedom party, which gained over 10% of the vote (and 37 seats, 32 via the proportional party-list system and 12 first-past-the-post constituencies), having garnered only 1% of the vote in 2007.  But just as startling was the surge in support for the Communist Party of Ukraine (CPU).  After years of declining support, there had been doubts as to whether the CPU would even get past the 5% barrier, but it in fact took over 13% of the vote on the party lists, winning 32 PR seats.  This is up from 5.39% in 2007.

    Local sources say that the relative success of the CPU was the result of hidden support from the ruling Party of Regions (which looks to have won 187 seats, 73 via the party lists and 114 constituencies) because it needs the CPU’s support in parliament.  It has been noted that Ukraine’s main TV channels were generous in the prime time coverage allocated to the CPU for its election broadcasts.  The CPU is widely seen as a satellite of the party in power, and its support could prove crucial to President Viktor Yanykovych should he seek to amend the constitution ahead of the 2015 presidential election.

    The pro-business Party of Regions, which is financed by wealthy industrialists, went into the election defending its record forcefully, and contrasting the "stability" which has been achieved in the past two years with the "chaos" during the premiership in 2007-10 of the now-jailed Yuliya Tymoshenko, leader of Fatherland.

    The Communists have been in the pro-Yanukovych majority since he was elected in 2010.  However, they campaigned against the "dictatorship of oligarchy" and proposed what they describe as an "alternative to the capitalist decline".

    They also promised to raise the status of the Russian language, following a nationwide referendum, and they want to "reinforce state sovereignty" by participating in Russia-led economic blocs, termination of cooperation with the IMF, and the revision of "discriminatory" agreements within the WTO.

    Fatherland, Freedom, and the Ukrainian Democratic Alliance for Reform, headed by boxing champion Vitaly Klitschko (which won 40 seats, 34 via the party lists) have mounted street protests demanding a recount in 13 electoral districts.  The government is opposed to this.  But even if the 13 seats were to go to the opposition, the Party of Regions seems certain to secure a majority in the 450-seat assembly with the support of the CPU and others (44 seats went to independents).  The authorities have until 12 November to announce the final result.

  • Risk pointers

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    *** China’s overseas acquisitions race ahead in 2012.  Figures released by the ChinaVenture Group on 5 November show the number of overseas mergers and acquisitions in the first nine months of 2012 at 208, valued at US$93.09bn.  In 2007, the number was 107 valued at US$13.58bn.  According to Wan Ge of ChinaVenture, the European debt crisis has, in particular, enabled Chinese enterprises to acquire undervalued European assets.  Although energy and mining were at the top of the list, there are also signs that China is diversifying its buying strategy, with agriculture now a strong feature.  An Ernst & Young report indicates that 82% of China’s overseas direct investment (ODI) in 2009 was energy oriented.  In the first half of 2012, it was only 60%.

    *** Pakistan power struggle.  On 5 November, Pakistan’s Chief of Army Staff General Ashfaq Pervez Kayani made a statement that has been interpreted as criticizing a court move against a retired army chief, General Aslam Beg, and a former head of the Inter-Services Intelligence (ISI), Lt-Gen Asad Durrani.  The allegation is that they bankrolled politicians to stop the current ruling Pakistan People’s Party (PPP) from winning the 1990 election.

    Kayani said: “No individual or institution has the monopoly to decide what is right or wrong in defining the ultimate national interest...Weakening the institutions and trying to assume more than one’s appropriate role will set us back...The fundamental principle, that one is innocent until proven guilty, should not be forgotten.  Let us not pre-judge anyone, be it a civilian or a military person, and extend it, unnecessarily, to undermine respective institutions.”

    This comment sparked a retaliation form Supreme Court Chief Justice Iftikhar Muhammad Chaudhry, who said: “Gone are the days when stability and security of the country was defined in terms of number of missiles and tanks as a manifestation of hard power available at the disposal of the state.”

    There was also some fairly hysterical media reaction to Kayani's statement, with many talk show hosts lashing out at the army chief for what he had said.  However, there has been some evidence of a conscious effort by the military leadership to play down the significance of Kayani's statement, and the PPP has also preferred to play it down.

    Nevertheless, there is clearly tension between the judiciary and the military.  The day after Kayani's statement, the Chief Justice was hearing a petition seeking to ban the media from criticizing the armed forces, intelligence agencies, and other defence and security institutions in the wake of the US operation to kill Osama bin Laden on 2 May 2011.  When the lawyer said that the army respected the court, the chief justice remarked: "Yes, we witnessed that yesterday".