Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Monday, August 17, 2009

US pipeline games with China


I am appalled at the mentality of Americans and the English when they are asked a question about why their countries are sending troups to Afghanistan. It seems that few have even a vague notion of why this expensive military invasion persists. Even more appalling is the Western media reports that purport to explain what is happening in China's Xinjiang province. I refer here to the recent regional disturbance between the Uygurs and Han people in Xinjiang.

Western media would have one believe this civil unrest is the result of Chinese communist dictators squelching the rights of outlying indigenous peoples. Of course, one expects nothing less of Western media journalism which supports the farcical notion of democracy of the West spread to the lucky countries of Asia and the Mideast.

Yet the real story of the conflicts in this outlying area of China may be quite different than the mainstream media insinuates. As with many other sensationalist propaganda from the West, the essential detail of energy pipeline politics is omitted from the front page analysis.

Below, F. William Engdahl, one of my favorite economists, has a more rational explanation for the civil unrest in Xinjiang recently...one that details the energy pipeline concerns of the U.S. in constraining the unstoppable Sino/Soviet alliance of providing energy to Europe and Asia. Indeed, all conflicts now about 'democracy' can be re-interpreted as 'oiligarchic' concerns.

Is Washington Playing a Deeper Game with China?


by F. William Engdahl
author of Full Spectrum Dominance: Totalitarian Democracy in the New World Order
July 13, 2009
Source

July 12 —After the tragic events of July 5 in Xinjiang Uyghur Autonomous Region in China, it would be useful to look more closely into the actual role of the US Government’s ”independent“ NGO, the National Endowment for Democracy (NED). All indications are that the US Government, once more acting through its “private” Non-Governmental Organization, the NED, is massively intervening into the internal politics of China.

The reasons for Washington’s intervention into Xinjiang affairs seems to have little to do with concerns over alleged human rights abuses by Beijing authorities against Uyghur people. It seems rather to have very much to do with the strategic geopolitical location of Xinjiang on the Eurasian landmass and its strategic importance for China’s future economic and energy cooperation with Russia, Kazakhastan and other Central Asia states of the Shanghai Cooperation Organization.

The major organization internationally calling for protests in front of Chinese embassies around the world is the Washington, D.C.-based World Uyghur Congress (WUC).

The WUC manages to finance a staff, a very fancy website in English, and has a very close relation to the US Congress-funded NED. According to published reports by the NED itself, the World Uyghur Congress receives $215,000.00 annually from the National Endowment for Democracy for “human rights research and advocacy projects.” The president of the WUC is an exile Uyghur who describes herself as a “laundress turned millionaire,” Rebiya Kadeer, who also serves as president of the Washington D.C.-based Uyghur American Association, another Uyghur human rights organization which receives significant funding from the US Government via the National Endowment for Democracy.

The NED was intimately involved in financial support to various organizations behind the Lhasa ”Crimson Revolution“ in March 2008, as well as the Saffron Revolution in Burma/Myanmar and virtually every regime change destabilization in eastern Europe over the past years from Serbia to Georgia to Ukraine to Kyrgystan to Teheran in the aftermath of the recent elections.

Allen Weinstein, who helped draft the legislation establishing NED, was quite candid when he said in a published interview in 1991: "A lot of what we do today was done covertly 25 years ago by the CIA."

The NED is supposedly a private, non-government, non-profit foundation, but it receives a yearly appropriation for its international work from the US Congress. The NED money is channelled through four “core foundations”. These are the National Democratic Institute for International Affairs, linked to Obama’s Democratic Party; the International Republican Institute tied to the Republican Party; the American Center for International Labor Solidarity linked to the AFL-CIO US labor federation as well as the US State Department; and the Center for International Private Enterprise linked to the US Chamber of Commerce.

The salient question is what has the NED been actively doing that might have encouraged the unrest in Xinjiang Uyghur Autonomous Region, and what is the Obama Administration policy in terms of supporting or denouncing such NED-financed intervention into sovereign politics of states which Washington deems a target for pressure? The answers must be found soon, but one major step to help clarify Washington policy under the new Obama Administration would be for a full disclosure by the NED, the US State Department and NGO’s linked to the US Government, of their involvement, if at all, in encouraging Uyghur separatism or unrest. Is it mere coincidence that the Uyghur riots take place only days following the historic meeting of the Shanghai Cooperation Organization?

Uyghur exile organizations, China and Geopolitics

On May 18 this year, the US-government’s in-house “private” NGO, the NED, according to the official WUC website, hosted a seminal human rights conference entitled East Turkestan: 60 Years under Communist Chinese Rule, along with a curious NGO with the name, the Unrepresented Nations and Peoples Organisation (UNPO).

The Honorary President and founder of the UNPO is one Erkin Alptekin, an exile Uyghur who founded UNPO while working for the US Information Agency’s official propaganda organization, Radio Free Europe/Radio Liberty as Director of their Uygur Division and Assistant Director of the Nationalities Services.

Alptekin also founded the World Uyghur Congress at the same time, in 1991, while he was with the US Information Agency. The official mission of the USIA when Alptekin founded the World Uyghur Congress in 1991 was “to understand, inform, and influence foreign publics in promotion of the [USA] national interest…” Alptekin was the first president of WUC, and, according to the official WUC website, is a “close friend of the Dalai Lama.”

Closer examination reveals that UNPO in turn to be an American geopolitical strategist’s dream organization. It was formed, as noted, in 1991 as the Soviet Union was collapsing and most of the land area of Eurasia was in political and economic chaos. Since 2002 its Director General has been Archduke Karl von Habsburg of Austria who lists his (unrecognized by Austria or Hungary) title as “Prince Imperial of Austria and Royal Prince of Hungary.”

Among the UNPO principles is the right to ‘self-determination’ for the 57 diverse population groups who, by some opaque process not made public, have been admitted as official UNPO members with their own distinct flags, with a total population of some 150 million peoples and headquarters in the Hague, Netherlands.

UNPO members range from Kosovo which “joined” when it was fully part of then Yugoslavia in 1991. It includes the “Aboriginals of Australia” who were listed as founding members along with Kosovo. It includes the Buffalo River Dene Nation indians of northern Canada.

The select UNPO members also include Tibet which is listed as a founding member. It also includes other explosive geopolitical areas as the Crimean Tartars, the Greek Minority in Romania, the Chechen Republic of Ichkeria (in Russia), the Democratic Movement of Burma, and the gulf enclave adjacent to Angola and the Democratic Republic of the Congo, and which just happens to hold rights to some of the world’s largest offshore oil fields leased to Condi Rice’s old firm, Chevron Oil. Further geopolitical hotspots which have been granted elite recognition by the UNPO membership include the large section of northern Iran which designates itself as Southern Azerbaijan, as well as something that calls itself Iranian Kurdistan.

In April 2008 according to the website of the UNPO, the US Congress’ NED sponsored a “leadership training” seminar for the World Uyghur Congress (WUC) together with the Unrepresented Nations and Peoples Organization. Over 50 Uyghurs from around the world together with prominent academics, government representatives and members of the civil society gathered in Berlin Germany to discuss “Self-Determination under International Law.” What they discussed privately is not known. Rebiya Kadeer gave the keynote address.

The suspicious timing of the Xinjiang riots

The current outbreak of riots and unrest in Urumqi, the capital of Xinjiang in the northwest part of China, exploded on July 5 local time.

According to the website of the World Uyghur Congress, the “trigger” for the riots was an alleged violent attack on June 26 in China’s southern Guangdong Province at a toy factory where the WUC alleges that Han Chinese workers attacked and beat to death two Uyghur workers for allegedly raping or sexually molesting two Han Chinese women workers in the factory. On July 1, the Munich arm of the WUC issued a worldwide call for protest demonstrations against Chinese embassies and consulates for the alleged Guangdong attack, despite the fact they admitted the details of the incident were unsubstantiated and filled with allegations and dubious reports.

According to a press release they issued, it was that June 26 alleged attack that gave the WUC the grounds to issue their worldwide call to action.

On July 5, a Sunday in Xinjiang but still the USA Independence Day, July 4, in Washington, the WUC in Washington claimed that Han Chinese armed soldiers seized any Uyghur they found on the streets and according to official Chinese news reports, widespread riots and burning of cars along the streets of Urumqi broke out resulting over the following three days in over 140 deaths.

China’s official Xinhua News Agency said that protesters from the Uighur Muslim ethnic minority group began attacking ethnic Han pedestrians, burning vehicles and attacking buses with batons and rocks. "They took to the street...carrying knives, wooden batons, bricks and stones," they cited an eyewitness as saying. The French AFP news agency quoted Alim Seytoff, general secretary of the Uighur American Association in Washington, that according to his information, police had begun shooting "indiscriminately" at protesting crowds.

Two different versions of the same events: The Chinese government and pictures of the riots indicate it was Uyghur riot and attacks on Han Chinese residents that resulted in deaths and destruction. French official reports put the blame on Chinese police “shooting indiscriminately.” Significantly, the French AFP report relies on the NED-funded Uyghur American Association of Rebiya Kadeer for its information. The reader should judge if the AFP account might be motivated by a US geopolitical agenda, a deeper game from the Obama Administration towards China’s economic future.

Is it merely coincidence that the riots in Xinjiang by Uyghur organizations broke out only days after the meeting took place in Yakaterinburg, Russia of the member nations of the Shanghai Cooperation Organization, as well as Iran as official observer guest, represented by President Ahmadinejad?

Over the past few years, in the face of what is seen as an increasingly hostile and incalculable United States foreign policy, the major nations of Eurasia—China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan have increasingly sought ways of direct and more effective cooperation in economic as well as security areas. In addition, formal Observer status within SCO has been given to Iran, Pakistan, India and Mongolia. The SCO defense ministers are in regular and growing consultation on mutual defense needs, as NATO and the US military command continue provocatively to expand across the region wherever it can.

The Strategic Importance of Xinjiang for Eurasian Energy Infrastructure

There is another reason for the nations of the SCO, a vital national security element, to having peace and stability in China’s Xinjiang region. Some of China’s most important oil and gas pipeline routes pass directly through Xinjiang province. Energy relations between Kazkhstan and China are of enormous strategic importance for both countries, and allow China to become less dependent on oil supply sources that can be cut off by possible US interdiction should relations deteriorate to such a point.

Kazak President Nursultan Nazarbayev paid a State visit in April 2009 to Beijing. The talks concerned deepening economic cooperation, above all in the energy area, where Kazkhastan holds huge reserves of oil and likely as well of natural gas. After the talks in Beijing, Chinese media carried articles with such titles as “"Kazakhstani oil to fill in the Great Chinese pipe."

The Atasu-Alashankou pipeline to be completed in 2009 will provide transportation of transit gas to China via Xinjiang. As well Chinese energy companies are involved in construction of a Zhanazholskiy gas processing plant, Pavlodar electrolyze plant and Moynakskaya hydro electric station in Kazakhstan.

According to the US Government’s Energy Information Administration, Kazakhstan’s Kashagan field is the largest oil field outside the Middle East and the fifth largest in the world in terms of reserves, located off the northern shore of the Caspian Sea, near the city of Atyrau. China has built a 613-mile-long pipeline from Atasu, in northwestern Kazakhstan, to Alashankou at the border of China's Xinjiang region which is exporting Caspian oil to China. PetroChina’s ChinaOil is the exclusive buyer of the crude oil on the Chinese side. The pipeline is a joint venture of CNPC and Kaztransoil of Kazkhstan. Some 85,000 bbl/d of Kazakh crude oil flowed through the pipeline during 2007. China’s CNPC is also involved in other major energy projects with Kazkhstan. They all traverse China’s Xinjiang region.

In 2007 CNPC signed an agreement to invest more than $2 billion to construct a natural gas pipeline from Turkmenistan through Uzbekistan and Kazakhstan to China. That pipeline would start at Gedaim on the border of Turkmenistan and Uzbekistan and extend 1,100 miles through Uzbekistan and Kazakhstan to Khorgos in China's Xinjiang region. Turkmenistan and China have signed a 30-year supply agreement for the gas that would fill the pipeline. CNPC has set up two entities to oversee the Turkmen upstream project and the development of a second pipeline that will cross China from the Xinjiang region to southeast China at a cost of some $7 billion.

As well, Russia and China are discussing major natural gas pipelines from eastern Siberia through Xinjiang into China. Eastern Siberia contains around 135 Trillion cubic feet of proven plus probable natural gas reserves. The Kovykta natural gas field could give China with natural gas in the next decade via a proposed pipeline.

During the current global economic crisis, Kazakhstan received a major credit from China of $10 billion, half of which is for oil and gas sector. The oil pipeline Atasu-Alashankou and the gas pipeline China-Central Asia, are an instrument of strategic 'linkage' of central Asian countries to the economy China. That Eurasian cohesion from Russia to China across Central Asian countries is the geopolitical cohesion Washington most fears. While they would never say so, growing instability in Xinjiang would be an ideal way for Washington to weaken that growing cohesion of the Shanghai Cooperation Organization nations.

Copyright © 2009 F. William Engdahl

Thursday, June 11, 2009

The death knell of the dollar


I have previously blogged on the emerging power of the BRIC countries here: When China awakes, it will shake the world. - Napoleon Bonaparte The article below is just more evidence that the dollar is losing reserve currency status. American leaders must know this. Exactly what this means for common people though, I do not know.



Brazil joins Russia, China in eyeing IMF bonds


By ALAN CLENDENNING
06.10.09
Source


SAO PAULO -- Brazil is looking to buy $10 billion in IMF bonds, Finance Minister Guido Mantega said on Wednesday, joining China and Russia in seeking to use the new instruments to diversify dollar-heavy currency reserves.

"This support is important to help end the international financial crisis," Mantega said, adding that a trade surplus and $204 billion in reserves has positioned Brazil to help the International Monetary Fund boost lending to other emerging economies.

Chinese officials have also expressed interest in buying as much as $50 billion in IMF bonds, while a Russian central bank official on Wednesday said his bank would reduce U.S. Treasury holdings to invest in the IMF notes instead. Russia now holds about $120 billion, or 30 percent, of its hard currency reserves in U.S. Treasuries and said it would redirect up to $10 billion to the IMF.

India also plans to buy some of the notes, although it has not yet said how much it will spend, Mantega said, according to the state-run Agencia Brasil news agency.

The announcements come just a week before the BRIC nations - Brazil, Russia, India and China - gather for talks in Russia, where they are widely expected to discuss alternatives to the U.S. dollar as the global reserve currency.

Russian officials have expressed concern about the dollar for several years and China has advocated a shift away from the greenback, warning that large U.S. budget deficits and monetary expansion could weaken the world's chief currency.

Commodity exporters like Brazil and Russia are particularly vulnerable because most raw materials including oil, soy and minerals are priced in U.S. dollars, making it even more likely that a weak greenback would slash their export income.

Russia is looking to diversify that risk with a move to IMF bonds, analysts said.

"They need to spread the risk out," said Ron Smith, chief strategist at Alfa Bank, one of Russia's biggest private lenders. "They've been doing some diversification for the past several years measuring everything against the dollar-euro basket."

In a statement from the Washington-based lender on Tuesday, IMF managing director Dominique Strauss-Kahn welcomed news of China's interest, saying its investment would "boost the Fund's capacity to help" emerging economies weather the world crisis and "benefit all members by facilitating an early recovery of the global economy."

He said the bonds will offer "a safe investment instrument with reasonable return," but gave no other details, noting only that IMF staff will present plans to the board to allow the bond issue "as early as possible."

The bonds, which have yet to be issued, will be denominated in special drawing rights, an artificial currency used by the IMF.

Leaders of the so-called Group of 20 nations, which include the four BRIC powerhouses, agreed at a London summit in April to boost contributions to the IMF by as much as $500 billion to help it increase lending to nations battered by the global downturn.

The bond issue is part of the effort to meet that goal, said a spokesman for the fund in Washington. He was unable to give any other details and declined to be named.

In Brazil, Mantega echoed Strauss-Kahn on Wednesday, saying that his country's $10 billion loan would help troubled economies recover, reviving global trade and ultimately benefiting net exporters including Brazil.

"Brazil is facing solid conditions to loan to the IMF. In the past, the opposite was true: the fund loaned to Brazil," said Mantega, who has lobbied for reforms that would boost developing countries' voting rights within the IMF. It was not clear if a bond purchase would change that.

The IMF has lent Brazil billions of dollars in the past, but the country became one of the fund's creditor countries for the first time this year.

The majority of Brazil's foreign reserves are held in dollars.

Associated Press writer Nataliya Vasilyeva in Moscow contributed to this report.

Copyright 2009 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed