President Trump and ZTE

There has to be an explanation for President Trump’s interest in saving jobs at ZTE.

In Concession, Trump Will Help China's ZTE 'Get Back Into ... photo

Could it be part of a trade issue with China to ensure China continues pressure on North Korea? Could it be to keep American intellectual property protected in some obscure plot where China continues to steal intelligence to eventually control all 5G?

The 2019 NDAA includes a provision to prohibit ZTE and Huawei use in the United States.

Reuters: “I hope the administration does not move forward on this supposed deal I keep reading about,” Republican Senator Marco Rubio said. Bilateral talks between the world’s two biggest economies resume in Washington this week.

The Wall Street Journal has reported Beijing would back away from threats to slap tariffs on U.S. farm goods in exchange for easing the ban on selling components to ZTE.

“They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio said at a Foreign Relations Committee hearing on Asia policy.

Trump had taken to Twitter on Sunday with a pledge to help the company, which has suspended its main operations, because the penalties had cost too many jobs in China. It was a departure for a president who often touts “America First” policies.

The Commerce Department in April found ZTE had violated a 2017 settlement created after the company violated sanctions on Iran and North Korea, and banned U.S. companies from providing exports to ZTE for seven years.

U.S. companies are estimated to provide 25 percent to 30 percent of components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.

The suggestion outraged members of Congress who have been pressing for more restrictions on ZTE. Some U.S. lawmakers have alleged equipment made by ZTE and other Chinese companies could pose a cyber security threat.

“Who makes unilateral concessions on the eve of talks after you’ve spent all this time trying to say, correctly in my view, that the Chinese have ripped off our technology?” Senator Ron Wyden, the senior Democrat on the Senate Finance Committee, which oversees trade policy, told Reuters.

Wyden, who is also on the Intelligence Committee, was one of 32 Senate Democrats who signed a letter on Tuesday accusing Trump of putting China’s interests ahead of U.S. jobs and national security.

The company has denied wrongdoing.

Republican Representative Mac Thornberry, chairman of the House Armed Services Committee, said at a Bloomberg event on Tuesday he did not expect lawmakers would seek to remove a ban on ZTE technology from a must-pass annual defense policy bill making its way through Congress.

“I confess I don’t fully understand the administration’s take on this at this point,” Thornberry said. “It is not a question to me of economics, it is a question of security.”

Consider:

Axios: President Trump’s desire to help save ZTE could set the tone for the treatment of another Chinese telecom company that’s under investigation for sanctions violations, Axios’ Erica Pandey writes.

The backdrop:

  • ZTE has been found guilty of breaking U.S. law three times, including violating sanctions by selling equipment with American parts to Iran and North Korea.
  • The Pentagon has banned the sale of ZTE and Huawei phones at retail stores on military bases, citing concerns that the companies are using their devices to spy on military personnel.
  • ZTE and Huawei are both key players in China’s race to dominate 5G and the future of mobile communication. The Chinese Communist Party is painting U.S. moves against the Chinese phone makers as efforts to knock China out of the 5G race.

Between the lines: “Ross had a color wheel of approaches [on ZTE] ranging from a handslap to breaking them as a company,” says Chris Johnson, a former CIA China analyst who’s now at the Center for Strategic and International Studies.

  • The Chinese might have stomached a slap on the wrist, but by banning American companies from selling parts to ZTE, Ross served up a punishment harsh enough to halt operations. China in turn made ZTE a top trade priority and used its massive leverage to potentially sway the president.

Why it matters: China could use Trump’s apparent pivot on ZTE as a stepping stone to free Huawei. Or the ZTE case could be a lesson for the U.S. in negotiating with China.

How the ZTE deal could fare:

  • “The U.S. and China are closing in on a deal that would give China’s ZTE Corp. a reprieve from potentially crippling U.S. sanctions in exchange for Beijing removing tariffs on billions of dollars of U.S. agricultural products, said people in both countries briefed on the deal,” the Wall Street Journal’s Lingling Wei and Bob Davis report.
  • Steven Mnuchin is leading the U.S. in negotiating a deal that puts the brakes on actions against ZTE in exchange for China buying down its trade surplus, reports Axios’ Jonathan Swan.
  • China’s trade negotiator, Liu He, is in DC today. Axios contributor Bill Bishop hears that Liu will arrive “with an open checkbook to buy down the deficit but that progress on anything structural will be much harder.”

The bottom line: Taking the toughest possible approach to China might not be the smartest when the Asian power is stronger than ever and prepared to fight back.

 

Trump Kim Talks now in Jeopardy, Developing

The United States and South Korea do military drills often and Kim Jung Un was well aware of those planned stating the drills were a rehearsal for an invasion. Further, North Korea has canceled talks with South Korea. The Kim regime is making yet another demand stating the United States must be careful about deliberations and the summit itself due to the ‘ruckus’ over the drills.

This all comes from the conclusion of the meeting that North Korea has with China.

Meanwhile:

Sperimentazione allertamento test nucleare ...

That nuclear test site that North Korea has declared inoperable and where media has been invited to see the dismantling of the site and tunnels may not be the only site and no one is speaking of other sites but should be. Why? Well Iran refuses to declared PMD (possible military dimension) sites that are part of the nuclear development plan. Since Iran and North Korea have long collaborated on nuclear programs, it stands to reason North Korea has other sites as well.

***

Ahead of the April 27 inter-Korean summit, NGA published a separate assessment that North Korea had started dismantling significant components and structures associated with nuclear test observation at Punggye-ri.

 

The North’s decision not only came before Kim Jong-un’s first meeting with South Korean President Moon Jae-in at Panmunjom, but also before the first-ever U.S.-North Korea summit meeting, scheduled for June 12 in Singapore.

Satellite imagery published by 38 North on Monday, May 14, provides open source corroboration of significant changes near the northern, western, and southern portals leading into the underground tunnel network that composes the Punggye-ri test site.

North Korea watchers Jeffrey Lewis and Dave Schmerler of the Monterey Institute of International Studies have also observed the dismantling of structures around the Punggye-ri test site. Lewis and his team created a 3D model offering an impression of the horizontal tunnel network at the Punggye-ri test site.

North Korea’s work to dismantle structures at the test site comes ahead of its announced intention to invite journalists and experts from China, Russia, South Korea, the United States, and the United Kingdom to observe the site’s dismantlement between May 23 and May 25.

A report published over the weekend by the country’s outward-facing state media, the Korean Central News Agency, said that the event would be to “ensure transparency of discontinuance of the nuclear test (sic).” U.S. President Donald Trump called Kim’s move a “very smart and gracious gesture” in a tweet.

The same report specified the process for the site’s disabling, which would include the collapsing of tunnels — presumably with explosives — and the removal of observation and research facilities. U.S. intelligence assessments suggest that much of the latter work will have been completed prior to the arrival of foreign observers.

The DIA and NGA assessments leave open the possibility that North Korea’s planned modifications to the test site next week could significantly extend the period of time necessary to restore Punggye-ri to a usable state.

Following Kim’s announcement that the Punggye-ri site will be shut down, international observers, including the Comprehensive Nuclear Test-Ban Treaty Organization’s (CTBTO) executive secretary, Lassina Zerbo, welcomed the announcement. Kim has not specified whether the CTBTO will be invited to verify the closure of the nuclear test site.

North Korea is the only country known to have conducted full-yield tests of nuclear weapons in the 21st century. Kim Jong-un has not expressed an interest in signing the Comprehensive Test-Ban Treaty, which has yet to enter into force.

With six nuclear tests, North Korea likely has a useful set of data that it can use to continue refining its nuclear weapons designs. The U.S. intelligence community has, with consensus, determined as of mid-2017 that North Korea is capable of mounting compact nuclear weapons atop its larger ballistic missiles, including its intercontinental-range ballistic missiles that threaten the continental United States.

In the same report to the Workers’ Party of Korea’s 7th Central Committee where Kim first acknowledged that Punggye-ri’s mission had come to an end, that North Korean leader, for the first time, publicly acknowledged that North Korea had conducted sub-critical nuclear weapons testing.

North Korea has not made any concessions on its sub-critical testing program, which will likely continue at its Nuclear Weapons Institute. Continued sub-critical testing would allow North Korea to maintain its existing weapons and refine their performance.

RCD: With the location and date of the forthcoming summit between President Donald Trump and Kim Jong‑un now fixed, speculation has turned to what sort of agreement might be achievable. US National Security Advisor John Bolton recently suggested that the ‘Libyan model’ of nuclear disarmament—from 2003–2004—might offer a framework that could be applied to North Korea in 2018.

The suggestion received what might kindly be called a mixed reception, not least because the North Koreans believe that Muammar al-Qaddafi was a fool to abandon his nuclear program. Still, I’d like to explore the Libyan case here because it offers one of the few examples of ‘denuclearisation’ that we have.

True, the two cases are markedly dissimilar: Libya, unlike North Korea, had made relatively little progress towards nuclear weapons when its leadership took the strategic decision to abandon the program. The Libyans had no nuclear weapons. Yes, they had a small number of centrifuges—some still in their original packing—and a quantity of uranium hexafluoride (the feedstock for a centrifuge enrichment cascade).

More ominously, they had a nuclear weapon design, apparently obtained from the A.Q. Khan network—although some Libyans claimed that the design was a ‘bonus’ intended as a reward for their other purchases.

But when US officials appeared before the US Senate Foreign Relations Committee in early 2004 to talk about the disarmament effort, senators were at least as interested in the detailed picture of the nuclear black market that the Libyan program revealed as they were in the program itself. While a raft of fascinating material about the program had suddenly spilled forth, it was the procurement trail, stretching from Libya to Pakistan and Malaysia, that the committee chairman, Senator Richard Lugar, referred to as ‘the treasure trove’.

While North Korea’s current indigenous capabilities are far stronger than Libya’s were 15 years ago, one suspects there would be similar interest in Washington today about Pyongyang’s proliferation links.

Further, there are some aspects of the Libyan model that the current US administration might want to replicate in any deal with North Korea. Two of those aspects concern access and relocation. US and British experts were given extraordinary access to the Libyan weapons of mass destruction (WMD) program. See the statements made in 2004 by Paula DeSutter, the US Assistant Secretary of State for Verification and Compliance, to two congressional committees (here and here) and, separately, in an interview with Arms Control Today:

The Libyans said, ‘We are no longer going to have a nuclear weapons program.’ They invited the United States and the United Kingdom in. They gave the United States and the United Kingdom access to all facilities that we requested to see. They were willing to permit any tests that we wanted to conduct. They were willing to have their centrifuge program removed … They have been very forthcoming.

In the chemical weapons area, we assisted them in drafting their declaration to the OPCW [Organization for the Prohibition of Chemical Weapons]. They had the OPCW technical secretariat come in. On one occasion they said, ‘You know, we really hadn’t told the others that came before, but there are some other munitions we need to show you.’ They took us to a facility that we almost certainly would not have been able to identify independently and showed us the unfilled munitions there. That is transparency. That is the kind of access that we are given when a country has made a strategic commitment. They volunteer information.

Some sources suggest that the procedure was not quite as straightforward as that passage of text implies. William Tobey, for example, argues that Libyan commitment and transparency varied on a day-to-day basis, at least in the early months. (See Tobey’s five-part series in the Bulletin of the Atomic ScientistsPart 1Part 2Part 3Part 4 and Part 5, and his 2017 assessment of intelligence and policy cooperation in the Libyan disarmament case.)

It was because of that variability that the Americans wanted to relocate key parts of the WMD program quickly. The most proliferation-sensitive parts of the program—equipment and documents—were airlifted to the Oak Ridge National Laboratory in Tennessee. The nuclear weapon design documents, revealed to the Americans on 20 January, were flown out of the country two days later.

During the night of 25–26 January 2004, an American C-17, its insignia painted over, landed at an air base near Tripoli, loaded its cargo—including advanced centrifuge rotors, five Scud‑C missile guidance sets and two tons of uranium hexafluoride—and took off again. Later, in March 2004, another 1,000 tons of materials and equipment were loaded aboard a US ship, the Industrial Challenger, its insignia again painted over, and taken to America.

Is that what President Trump is going to propose to Kim Jong‑un? Media sources say that the US has asked North Korea to ‘discard’ the data from its nuclear weapon development program and allow its nuclear scientists to emigrate. Of course, the manner—and direction—in which that data might be discarded is a non-trivial issue.

And emigration would, of course, be a humane solution to an intractable problem: that even after the weapons are gone and the data has been discarded, the knowledge of how to make nuclear weapons and their delivery vehicles will still exist in the minds of North Korea’s scientists. I don’t imagine, though, that Washington wants those scientists heading to the Middle East. Russia and China might be acceptable destinations. People say that Tennessee is nice this time of year.

As was the case with the Libyan deal, the US is also arguing that this is an opportunity for North Korea to abandon not merely its nuclear program, but all of its WMD. Still, nuclear weapons and ballistic missiles seem likely to be the core of any deal.

On ballistic missiles, a key US objective in 2003–2004 was to ensure that Libya’s missile program was compliant with the thresholds set out in the Missile Technology Control Regime—namely, that its missiles were limited in their range to a maximum of 300 kilometres and in their payload to a maximum of 500 kilograms.

In short, the Libyan model sets high standards in relation to the exposure of proliferation linkages; provision of access to sites, personnel and materials; relocation of key items; and acceptance of international standards on WMD. Can an agreement with Pyongyang meet those standards? Frankly, it seems unlikely.

The Libyan model, after all, had one driver that might not be equally compelling in the North Korean case: the strategic commitment by the leadership to put aside WMD. Because of that commitment, the model unfolded quickly and the verification hurdles proved surmountable.

A similar level of strategic commitment on Kim Jong‑un’s part is what the Americans are hoping to find in Singapore on 12 June. The Trump administration is certainly signallingthat this is their desired approach.

 

U.S. Applies New Iran Sanctions, Hardly Enough

We are still at war in the Middle East where Iran with proxies is the real and virtual enemy. The United States uses proxies as well, yet the United States near term and long range strategy remains fleeting.

The talks that continue between Iran and Europe on the JCPOA should include Iran’s war operation in the Middle East.

For related reading: How Iran Spreads Its Empire through Terrorist Militias, In Lebanon, Iraq, Yemen, and elsewhere, Tehran has perfected the art of gradually conquering a country without replacing its flag.

https://lh5.googleusercontent.com/_fdkmbEaLNsthfxOkoTpRxuhC2mSgPJfm2_f4IcdO9OLC8jMqBk5ambXr3ZwDw1cbXzPO0HkTEU_l5j-ZIOvKmJfUplgWyyl6COiJ7zOyS8IC7PFxOXsApqtEhf085IRRVbVd8e_ photo

Going forward for the United States:

Implications and Future Research
The unwillingness of the United States and its GCC partners to use their vast conventional military superiority has shifted the balance of power in the region from the conventional to the unconventional realm. Iran then relies on its willingness to assume more risk and its ability to better influence proxies than its adversaries, to achieve favorable foreign policy outcomes despite the opposition of the United States and its Arab allies. The use of proxy groups fundamentally decreases the physical cost a state incurs due to conflict. However, when the soldiers of a state die advising and assisting these proxies, it is more difficult to justify domestically, because using proxies signals that the objectives are not important enough to warrant decisive intervention. Therefore, states are most successful when they use proxies not as a cost-reduction mechanism alone but because proxies
are better able to achieve the desired end than conventional military forces. If the United States is unwilling to risk additional battle deaths or domestic political repercussions to prevent Iran from projecting power across the Middle East, then it must instead apply cost-imposing strategies.
Increasing the effectiveness of special operations forces from allied Arab states through intelligence sharing, kinetic strikes, training, and attached American advisors, while encouraging deployments of these elements to areas where Iranian advisors and IRGC units operate, would increase the human cost of Iranian activities. In addition to targeting Iran’s primary efforts in Iraq and Syria, these partnered operations should also confront peripheral Iranian efforts throughout the Gulf, including Yemen, in order to exploit the weakness of Iranian popular support for its presence therein. By working through Arab partners, the United States can apply the indigenous force necessary to confront Iranian proxies, while increasing the likelihood that Arab states achieve a confluence of shared ideology and objectives with their proxies, which eludes the United States
as a separate actor. Saudi and Emirati support to Yemeni military units recapturing the port of Aden and the Bab al-Mandab Strait serve as good examples of the type of effort the United States should expand.
In addition to combating Iranian proxy groups directly, targeting the ground, air, and sea logistical routes that the IRGC Quds Force uses to supply its proxies would affect Iran’s ability to support its efforts in the region. As long as Iran continues to rely on a domestically based force projection model, its network is vulnerable to air strikes, raids, and sabotage. An expanded network of friendly proxies partnered with US and allied
-Arab advisors would be ideally suited to facilitating this type of targeting.
The author is: Maj. Alex Deep is an assistant professor in the Department of Social Sciences at the United States Military Academy at West Point. He is a Special Forces officer with ten years of service and multiple deployments to Afghanistan in conventional and special operations task forces. He served as a rifle platoon leader and company executive officer in the 173rd Airborne Brigade Combat Team prior to completing Special Forces Assessment and Selection and subsequently the Special Forces Qualification Course. He then served as a Special Forces detachment commander and battalion assistant operations officer in 1st Battalion, 3rd Special Forces Group (Airborne). He currently teaches SS307: Introduction to International Relations. Deep holds a Bachelor of Science in American Politics and Arabic from the United States Military Academy at West Point and a Master of Arts in Strategic Studies and International Economics from the Johns Hopkins University School of Advanced International Studies.

Hey, How About Assigning an IG to the JCPOA?

There is still much dispute over the Iranian nuclear deal, the P5+1, the money, the players and the inspections. There were side deals too, do we really know all there is to know?

Iran in parallel nuclear talks in Vienna, Istanbul - Daily News Egypt photo

Perhaps it is past time that an Inspector General is assigned to the whole deal and talks. How much did the United States really pay to Iran? How many other countries participated in the deal beyond those of the P5+1? Who took bribes? Who is getting kickbacks? What is Ben Rhodes doing these days for a living? Were there really any inspections to confirm Iran’s compliance?

A little known fact is the UN’s top nuclear inspector resigned immediately when President Trump withdrew from the JCPOA.

The International Atomic Energy Agency didn’t give a reason for the sudden resignation of Tero Varjoranta, stating Saturday that it doesn’t comment on confidential personnel matters.

Varjoranta, who was in the role for almost five years, will be replaced temporarily by Massimo Aparo, an Italian nuclear engineer who was most recently the agency’s top inspector for Iran.

The move comes just days after U.S. President Donald Trump announced the United States would withdraw from the 2015 Iran nuclear accord designed to keep Tehran’s atomic weapons program in check.

The Vienna-based nuclear agency says it has no indications Iran is in breach of the accord.

*** What does Iran know now that could incriminate Western officials? If there is real evidence of international corruption by Western officials, will that affect snap-back sanctions on Iran? Will that affect relations with Britain, France or Germany? Susan Rice admitted to 2 side deals and those documents would not be published or provided.

After passing a 90-day mark on Aug. 6, the following sanctions will snap back on Iran, according to the Treasury Department:

  • Sanctions on Iran buying or acquiring U.S. dollars
  • Sanctions on Iran trading gold and other precious metals
  • Sanctions on Iran’s sale, supply or trade of metals such as aluminum and steel, as well as graphite, coal and certain software for “integrating industrial processes”
  • Sanctions on “significant” sales or purchases of Iranian rials, or the maintenance of significant funds or accounts outside the country using Iranian rials
  • Sanctions on issuing Iranian debt
  • Iranian auto sanctions

The U.S. will also revoke certain permissions, granted to Iran under the deal, on Aug. 6. These include halting Iran’s ability to export its carpets and foods into the U.S., as well as ending certain licensing-related transactions.

At the end of the 180-day interval on Nov. 4, another set of sanctions will once again be clamped down on Iran:

  • Sanctions on Iran’s ports, as well as the country’s shipping and shipping sectors
  • Sanctions on buying petroleum and petrochemical products with a number of Iranian oil companies
  • Sanctions on foreign financial institutions transacting with the Central Bank of Iran and other Iranian financial institutions
  • Sanctions on the provision of certain financial messaging services to Iran’s central bank and other Iranian financial institutions
  • Sanctions on the provision of underwriting services, insurance, or reinsurance
  • Sanctions on Iran’s energy sector

The following day, on Nov. 5, the Trump administration will disallow U.S.-owned foreign entities from being allowed to engage in certain transactions with Iran. Sanctions on certain Iranian individuals will also be re-imposed on Nov. 5.

Read the Treasury’s full guide to the re-imposition of Iran nuclear deal sanctions here.

*** Why are we only focusing on Iran regarding the nuclear deal? Why not their global reign of terror?

Iran, a State Sponsor of Terrorism, continues to invest in proxy terrorist and militant organizations that threaten the Homeland and US interests and engage in activities that impede US counterterrorism goals. This hearing will examine trends in Iran’s external operations and capabilities and consider the near-term and long-term security implications of Iranian support for Shia militants and terrorist groups operating in the Middle East, Afghanistan and Latin America.

 

Yes, it is for sure time for a full set off committee hearings and for subpoena power along with an Inspector General.

Qasem Soleimani, Marshal of Global Terror and Money Laundering

Primer: Qasem Soleimani, the military maestro of the IRGC, commanded the base that attacked Israel earlier this week. Further, the Israelis asked permission to assassinate Soleimani during the Obama administration. They were denied and Obama officials leaked the plot to Iran. Now, that same request has apparently been asked of the Trump administration and the request was approved.

General Qassem Suleimani: The Thinker Of Our Time ...

Soleimani has a long terror history, globally.

Tower: The United States Treasury Department, working with authorities in the United Arab Emirates, broke up a money laundering scheme that provided millions of dollars to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), Reuters reported Thursday.

Treasury designated six individuals and three business entities for their role in the scheme. The UAE, where companies facilitating the money laundering were located, but the same people and entities on its list of terrorists and terror organizations that do business with the IRGC-QF.

In a statement announcing the new sanctions, Treasury Secretary Steven T. Mnuchin said, “The Iranian regime and its Central Bank have abused access to entities in the UAE to acquire U.S. dollars to fund the IRGC-QF’s malign activities, including to fund and arm its regional proxy groups, by concealing the purpose for which the U.S. dollars were acquired. As I said following the President’s announcement on Tuesday, we are intent on cutting off IRGC revenue streams wherever their source and whatever their destination. Today we are targeting Iranian individuals and front companies engaged in a large-scale currency exchange network that has procured and transferred millions to the IRGC-QF.”

Mnuchin thanked the UAE for its “close collaboration” in disrupting the money laundering and called on all nations to “be vigilant” in fighting Iranian attempts at money-laundering to “fund the nefarious actors of the IRGC-QF and the world’s largest state sponsor of terror.”

United States and United Arab Emirates disrupt large scale currency exchange network transferring millions of dollars to Iran’s Islamic Revolutionary Guard Corps-Qods Force: Exchange Network CHART:

Reuters described the IRGC as Iran’s “most powerful security entity,” with control over a large share of Iran’s economy. IRGC-QF is described as “an elite unit in charge of the IRGC’s overseas operations.”

In 2015, Reuters reported that more than $1 billion in cash had been smuggled into Iran despite sanctions, utilizing “money changers and front companies in Dubai, in the United Arab Emirates and Iraq.” Iran preferred using a network of front companies to handle the money laundering in order to conceal “the overall size of the dollar-purchasing operation.”

When he announced the United States’ withdrawal from the nuclear deal earlier this week, President Donald Trump gave companies either three month or six months to wind down their dealings with Iran.