Friday, August 25, 2006

Cluster bombs in S. Lebanon

August 25, 2006
Weapons
Inquiry Opened Into Israeli Use of U.S. Bombs

By DAVID S. CLOUD
WASHINGTON, Aug. 24 — The State Department is investigating whether Israel’s use of American-made cluster bombs in southern Lebanon violated secret agreements with the United States that restrict when it can employ such weapons, two officials said.

The investigation by the department’s Office of Defense Trade Controls began this week, after reports that three types of American cluster munitions, anti-personnel weapons that spray bomblets over a wide area, have been found in many areas of southern Lebanon and were responsible for civilian casualties.

Gonzalo Gallegos, a State Department spokesman, said, “We have heard the allegations that these munitions were used, and we are seeking more information.” He declined to comment further.

Several current and former officials said that they doubted the investigation would lead to sanctions against Israel but that the decision to proceed with it might be intended to help the Bush administration ease criticism from Arab governments and commentators over its support of Israel’s military operations. The investigation has not been publicly announced; the State Department confirmed it in response to questions.

In addition to investigating use of the weapons in southern Lebanon, the State Department has held up a shipment of M-26 artillery rockets, a cluster weapon, that Israel sought during the conflict, the officials said.

The inquiry is likely to focus on whether Israel properly informed the United States about its use of the weapons and whether targets were strictly military. So far, the State Department is relying on reports from United Nations personnel and nongovernmental organizations in southern Lebanon, the officials said.

David Siegel, a spokesman for the Israeli Embassy, said, “We have not been informed about any such inquiry, and when we are we would be happy to respond.”

Officials were granted anonymity to discuss the investigation because it involves sensitive diplomatic issues and agreements that have been kept secret for years.

The agreements that govern Israel’s use of American cluster munitions go back to the 1970’s, when the first sales of the weapons occurred, but the details of them have never been publicly confirmed. The first one was signed in 1976 and later reaffirmed in 1978 after an Israeli incursion into Lebanon. News accounts over the years have said that they require that the munitions be used only against organized Arab armies and clearly defined military targets under conditions similar to the Arab-Israeli wars of 1967 and 1973.

A Congressional investigation after Israel’s 1982 invasion of Lebanon found that Israel had used the weapons against civilian areas in violation of the agreements. In response, the Reagan administration imposed a six-year ban on further sales of cluster weapons to Israel.

Israeli officials acknowledged soon after their offensive began last month that they were using cluster munitions against rocket sites and other military targets. While Hezbollah positions were frequently hidden in civilian areas, Israeli officials said their intention was to use cluster bombs in open terrain.

Bush administration officials warned Israel to avoid civilian casualties, but they have lodged no public protests against its use of cluster weapons. American officials say it has not been not clear whether the weapons, which are also employed by the United States military, were being used against civilian areas and had been supplied by the United States. Israel also makes its own types of cluster weapons.

But a report released Wednesday by the United Nations Mine Action Coordination Center, which has personnel in Lebanon searching for unexploded ordnance, said it had found unexploded bomblets, including hundreds of American types, in 249 locations south of the Litani River.

The report said American munitions found included 559 M-42’s, an anti-personnel bomblet used in 105-millimeter artillery shells; 663 M-77’s, a submunition found in M-26 rockets; and 5 BLU-63’s, a bomblet found in the CBU-26 cluster bomb. Also found were 608 M-85’s, an Israeli-made submunition.

The unexploded submunitions being found in Lebanon are probably only a fraction of the total number dropped. Cluster munitions can contain dozens or even hundreds of submunitions designed to explode as they scatter around a wide area. They are very effective against rocket-launcher units or ground troops.

The Lebanese government has reported that the conflict killed 1,183 people and wounded 4,054, most of them civilians. The United Nations reported this week that the number of civilian casualties in Lebanon from cluster munitions, land mines and unexploded bombs stood at 30 injured and eight killed.

Dozen of Israelis were killed and hundreds wounded in attacks by Hezbollah rockets, some of which were loaded with ball bearings to maximize their lethality.

Officials say it is unlikely that Israel will be found to have violated a separate agreement, the Arms Export Control Act, which requires foreign governments that receive American weapons to use them for legitimate self-defense. Proving that Israel’s campaign against Hezbollah did not constitute self-defense would be difficult, especially in view of President Bush’s publicly announced support for Israel’s action after Hezbollah fighters attacked across the border, the officials said.

Even if Israel is found to have violated the classified agreement covering cluster bombs, it is not clear what actions the United States might take.

In 1982, delivery of cluster-bomb shells to Israel was suspended a month after Israel invaded Lebanon after the Reagan administration determined that Israel “may” have used them against civilian areas.

But the decision to impose what amounted to a indefinite moratorium was made under pressure from Congress, which conducted a long investigation of the issue. Israel and the United States reaffirmed restrictions on the use of cluster munitions in 1988, and the Reagan administration lifted the moratorium.


Copyright 2006 The New York Times Company

Tax Farmers, Mercenaries and Viceroys

August 21, 2006
Op-Ed Columnist
Tax Farmers, Mercenaries and Viceroys

By PAUL KRUGMAN
Yesterday The New York Times reported that the Internal Revenue Service would outsource collection of unpaid back taxes to private debt collectors, who would receive a share of the proceeds.

It’s an awful idea. Privatizing tax collection will cost far more than hiring additional I.R.S. agents, raise less revenue and pose obvious risks of abuse. But what’s really amazing is the extent to which this plan is a retreat from modern principles of government. I used to say that conservatives want to take us back to the 1920’s, but the Bush administration seemingly wants to go back to the 16th century.

And privatized tax collection is only part of the great march backward.

In the bad old days, government was a haphazard affair. There was no bureaucracy to collect taxes, so the king subcontracted the job to private “tax farmers,” who often engaged in extortion. There was no regular army, so the king hired mercenaries, who tended to wander off and pillage the nearest village. There was no regular system of administration, so the king assigned the task to favored courtiers, who tended to be corrupt, incompetent or both.

Modern governments solved these problems by creating a professional revenue department to collect taxes, a professional officer corps to enforce military discipline, and a professional civil service. But President Bush apparently doesn’t like these innovations, preferring to govern as if he were King Louis XII.

So the tax farmers are coming back, and the mercenaries already have. There are about 20,000 armed “security contractors” in Iraq, and they have been assigned critical tasks, from guarding top officials to training the Iraqi Army.

Like the mercenaries of old, today’s corporate mercenaries have discipline problems. “They shoot people, and someone else has to deal with the aftermath,” declared a U.S. officer last year.

And armed men operating outside the military chain of command have caused at least one catastrophe. Remember the four Americans hung from a bridge? They were security contractors from Blackwater USA who blundered into Falluja — bypassing a Marine checkpoint — while the Marines were trying to pursue a methodical strategy of pacifying the city. The killing of the four, and the knee-jerk reaction of the White House — which ordered an all-out assault, then called it off as casualties mounted — may have ended the last chance of containing the insurgency.

Yet Blackwater, whose chief executive is a major contributor to the Republican Party, continues to thrive. The Department of Homeland Security sent heavily armed Blackwater employees into New Orleans immediately after Katrina.

To whom are such contractors accountable? Last week a judge threw out a jury’s $10 million verdict against Custer Battles, a private contractor that was hired, among other things, to provide security at Baghdad’s airport. Custer Battles has become a symbol of the mix of cronyism, corruption and sheer amateurishness that doomed the Iraq adventure — and the judge didn’t challenge the jury’s finding that the company engaged in blatant fraud.

But he ruled that the civil fraud suit against the company lacked a legal basis, because as far as he could tell, the Coalition Provisional Authority, which ran Iraq’s government from April 2003 to June 2004, wasn’t “an instrumentality of the U.S. government.” It wasn’t created by an act of Congress; it wasn’t a branch of the State Department or any other established agency.

So what was it? Any premodern monarch would have recognized the arrangement: in effect, the authority was a personal fief run by a viceroy answering only to the ruler. And since the fief operated outside all the usual rules of government, the viceroy was free to hire a staff of political loyalists lacking any relevant qualifications for their jobs, and to hand out duffel bags filled with $100 bills to contractors with the right connections.

Tax farmers, mercenaries and viceroys: why does the Bush administration want to run a modern superpower as if it were a 16th-century monarchy? Maybe people who’ve spent their political careers denouncing government as the root of all evil can’t grasp the idea of governing well. Or maybe it’s cynical politics: privatization provides both an opportunity to evade accountability and a vast source of patronage.

But the price is enormous. This administration has thrown away centuries of lessons about how to make government work. No wonder it has failed at everything except fearmongering.


Copyright 2006 The New York Times Company

Saturday, August 19, 2006

Seymour Hersh, in the New Yorker, on the Israel war

or this: shiver shiver


















WATCHING LEBANON
by SEYMOUR M. HERSH
Washington’s interests in Israel’s war.
Issue of 2006-08-21
Posted 2006-08-14

In the days after Hezbollah crossed from Lebanon into Israel, on July 12th, to kidnap two soldiers, triggering an Israeli air attack on Lebanon and a full-scale war, the Bush Administration seemed strangely passive. “It’s a moment of clarification,” President George W. Bush said at the G-8 summit, in St. Petersburg, on July 16th. “It’s now become clear why we don’t have peace in the Middle East.” He described the relationship between Hezbollah and its supporters in Iran and Syria as one of the “root causes of instability,” and subsequently said that it was up to those countries to end the crisis. Two days later, despite calls from several governments for the United States to take the lead in negotiations to end the fighting, Secretary of State Condoleezza Rice said that a ceasefire should be put off until “the conditions are conducive.”
The Bush Administration, however, was closely involved in the planning of Israel’s retaliatory attacks. President Bush and Vice-President Dick Cheney were convinced, current and former intelligence and diplomatic officials told me, that a successful Israeli Air Force bombing campaign against Hezbollah’s heavily fortified underground-missile and command-and-control complexes in Lebanon could ease Israel’s security concerns and also serve as a prelude to a potential American preëmptive attack to destroy Iran’s nuclear installations, some of which are also buried deep underground.
Israeli military and intelligence experts I spoke to emphasized that the country’s immediate security issues were reason enough to confront Hezbollah, regardless of what the Bush Administration wanted. Shabtai Shavit, a national-security adviser to the Knesset who headed the Mossad, Israel’s foreign-intelligence service, from 1989 to 1996, told me, “We do what we think is best for us, and if it happens to meet America’s requirements, that’s just part of a relationship between two friends. Hezbollah is armed to the teeth and trained in the most advanced technology of guerrilla warfare. It was just a matter of time. We had to address it.”
Hezbollah is seen by Israelis as a profound threat—a terrorist organization, operating on their border, with a military arsenal that, with help from Iran and Syria, has grown stronger since the Israeli occupation of southern Lebanon ended, in 2000. Hezbollah’s leader, Sheikh Hassan Nasrallah, has said he does not believe that Israel is a “legal state.” Israeli intelligence estimated at the outset of the air war that Hezbollah had roughly five hundred medium-range Fajr-3 and Fajr-5 rockets and a few dozen long-range Zelzal rockets; the Zelzals, with a range of about two hundred kilometres, could reach Tel Aviv. (One rocket hit Haifa the day after the kidnappings.) It also has more than twelve thousand shorter-range rockets. Since the conflict began, more than three thousand of these have been fired at Israel.
According to a Middle East expert with knowledge of the current thinking of both the Israeli and the U.S. governments, Israel had devised a plan for attacking Hezbollah—and shared it with Bush Administration officials—well before the July 12th kidnappings. “It’s not that the Israelis had a trap that Hezbollah walked into,” he said, “but there was a strong feeling in the White House that sooner or later the Israelis were going to do it.”
The Middle East expert said that the Administration had several reasons for supporting the Israeli bombing campaign. Within the State Department, it was seen as a way to strengthen the Lebanese government so that it could assert its authority over the south of the country, much of which is controlled by Hezbollah. He went on, “The White House was more focussed on stripping Hezbollah of its missiles, because, if there was to be a military option against Iran’s nuclear facilities, it had to get rid of the weapons that Hezbollah could use in a potential retaliation at Israel. Bush wanted both. Bush was going after Iran, as part of the Axis of Evil, and its nuclear sites, and he was interested in going after Hezbollah as part of his interest in democratization, with Lebanon as one of the crown jewels of Middle East democracy.”
Administration officials denied that they knew of Israel’s plan for the air war. The White House did not respond to a detailed list of questions. In response to a separate request, a National Security Council spokesman said, “Prior to Hezbollah’s attack on Israel, the Israeli government gave no official in Washington any reason to believe that Israel was planning to attack. Even after the July 12th attack, we did not know what the Israeli plans were.” A Pentagon spokesman said, “The United States government remains committed to a diplomatic solution to the problem of Iran’s clandestine nuclear weapons program,” and denied the story, as did a State Department spokesman.
The United States and Israel have shared intelligence and enjoyed close military coöperation for decades, but early this spring, according to a former senior intelligence official, high-level planners from the U.S. Air Force—under pressure from the White House to develop a war plan for a decisive strike against Iran’s nuclear facilities—began consulting with their counterparts in the Israeli Air Force.
“The big question for our Air Force was how to hit a series of hard targets in Iran successfully,” the former senior intelligence official said. “Who is the closest ally of the U.S. Air Force in its planning? It’s not Congo—it’s Israel. Everybody knows that Iranian engineers have been advising Hezbollah on tunnels and underground gun emplacements. And so the Air Force went to the Israelis with some new tactics and said to them, ‘Let’s concentrate on the bombing and share what we have on Iran and what you have on Lebanon.’ ” The discussions reached the Joint Chiefs of Staff and Secretary of Defense Donald Rumsfeld, he said.
“The Israelis told us it would be a cheap war with many benefits,” a U.S. government consultant with close ties to Israel said. “Why oppose it? We’ll be able to hunt down and bomb missiles, tunnels, and bunkers from the air. It would be a demo for Iran.”
A Pentagon consultant said that the Bush White House “has been agitating for some time to find a reason for a preëmptive blow against Hezbollah.” He added, “It was our intent to have Hezbollah diminished, and now we have someone else doing it.” (As this article went to press, the United Nations Security Council passed a ceasefire resolution, although it was unclear if it would change the situation on the ground.)
According to Richard Armitage, who served as Deputy Secretary of State in Bush’s first term—and who, in 2002, said that Hezbollah “may be the A team of terrorists”—Israel’s campaign in Lebanon, which has faced unexpected difficulties and widespread criticism, may, in the end, serve as a warning to the White House about Iran. “If the most dominant military force in the region—the Israel Defense Forces—can’t pacify a country like Lebanon, with a population of four million, you should think carefully about taking that template to Iran, with strategic depth and a population of seventy million,” Armitage said. “The only thing that the bombing has achieved so far is to unite the population against the Israelis.”



Several current and former officials involved in the Middle East told me that Israel viewed the soldiers’ kidnapping as the opportune moment to begin its planned military campaign against Hezbollah. “Hezbollah, like clockwork, was instigating something small every month or two,” the U.S. government consultant with ties to Israel said. Two weeks earlier, in late June, members of Hamas, the Palestinian group, had tunnelled under the barrier separating southern Gaza from Israel and captured an Israeli soldier. Hamas also had lobbed a series of rockets at Israeli towns near the border with Gaza. In response, Israel had initiated an extensive bombing campaign and reoccupied parts of Gaza.
The Pentagon consultant noted that there had also been cross-border incidents involving Israel and Hezbollah, in both directions, for some time. “They’ve been sniping at each other,” he said. “Either side could have pointed to some incident and said ‘We have to go to war with these guys’—because they were already at war.”
David Siegel, the spokesman at the Israeli Embassy in Washington, said that the Israeli Air Force had not been seeking a reason to attack Hezbollah. “We did not plan the campaign. That decision was forced on us.” There were ongoing alerts that Hezbollah “was pressing to go on the attack,” Siegel said. “Hezbollah attacks every two or three months,” but the kidnapping of the soldiers raised the stakes.
In interviews, several Israeli academics, journalists, and retired military and intelligence officers all made one point: they believed that the Israeli leadership, and not Washington, had decided that it would go to war with Hezbollah. Opinion polls showed that a broad spectrum of Israelis supported that choice. “The neocons in Washington may be happy, but Israel did not need to be pushed, because Israel has been wanting to get rid of Hezbollah,” Yossi Melman, a journalist for the newspaper Ha’aretz, who has written several books about the Israeli intelligence community, said. “By provoking Israel, Hezbollah provided that opportunity.”
“We were facing a dilemma,” an Israeli official said. Prime Minister Ehud Olmert “had to decide whether to go for a local response, which we always do, or for a comprehensive response—to really take on Hezbollah once and for all.” Olmert made his decision, the official said, only after a series of Israeli rescue efforts failed.
The U.S. government consultant with close ties to Israel told me, however, that, from Israel’s perspective, the decision to take strong action had become inevitable weeks earlier, after the Israeli Army’s signals intelligence group, known as Unit 8200, picked up bellicose intercepts in late spring and early summer, involving Hamas, Hezbollah, and Khaled Meshal, the Hamas leader now living in Damascus.
One intercept was of a meeting in late May of the Hamas political and military leadership, with Meshal participating by telephone. “Hamas believed the call from Damascus was scrambled, but Israel had broken the code,” the consultant said. For almost a year before its victory in the Palestinian elections in January, Hamas had curtailed its terrorist activities. In the late May intercepted conversation, the consultant told me, the Hamas leadership said that “they got no benefit from it, and were losing standing among the Palestinian population.” The conclusion, he said, was “ ‘Let’s go back into the terror business and then try and wrestle concessions from the Israeli government.’ ” The consultant told me that the U.S. and Israel agreed that if the Hamas leadership did so, and if Nasrallah backed them up, there should be “a full-scale response.” In the next several weeks, when Hamas began digging the tunnel into Israel, the consultant said, Unit 8200 “picked up signals intelligence involving Hamas, Syria, and Hezbollah, saying, in essence, that they wanted Hezbollah to ‘warm up’ the north.” In one intercept, the consultant said, Nasrallah referred to Olmert and Defense Minister Amir Peretz “as seeming to be weak,” in comparison with the former Prime Ministers Ariel Sharon and Ehud Barak, who had extensive military experience, and said “he thought Israel would respond in a small-scale, local way, as they had in the past.”



Earlier this summer, before the Hezbollah kidnappings, the U.S. government consultant said, several Israeli officials visited Washington, separately, “to get a green light for the bombing operation and to find out how much the United States would bear.” The consultant added, “Israel began with Cheney. It wanted to be sure that it had his support and the support of his office and the Middle East desk of the National Security Council.” After that, “persuading Bush was never a problem, and Condi Rice was on board,” the consultant said.
The initial plan, as outlined by the Israelis, called for a major bombing campaign in response to the next Hezbollah provocation, according to the Middle East expert with knowledge of U.S. and Israeli thinking. Israel believed that, by targeting Lebanon’s infrastructure, including highways, fuel depots, and even the civilian runways at the main Beirut airport, it could persuade Lebanon’s large Christian and Sunni populations to turn against Hezbollah, according to the former senior intelligence official. The airport, highways, and bridges, among other things, have been hit in the bombing campaign. The Israeli Air Force had flown almost nine thousand missions as of last week. (David Siegel, the Israeli spokesman, said that Israel had targeted only sites connected to Hezbollah; the bombing of bridges and roads was meant to prevent the transport of weapons.)
The Israeli plan, according to the former senior intelligence official, was “the mirror image of what the United States has been planning for Iran.” (The initial U.S. Air Force proposals for an air attack to destroy Iran’s nuclear capacity, which included the option of intense bombing of civilian infrastructure targets inside Iran, have been resisted by the top leadership of the Army, the Navy, and the Marine Corps, according to current and former officials. They argue that the Air Force plan will not work and will inevitably lead, as in the Israeli war with Hezbollah, to the insertion of troops on the ground.)
Uzi Arad, who served for more than two decades in the Mossad, told me that to the best of his knowledge the contacts between the Israeli and U.S. governments were routine, and that, “in all my meetings and conversations with government officials, never once did I hear anyone refer to prior coördination with the United States.” He was troubled by one issue—the speed with which the Olmert government went to war. “For the life of me, I’ve never seen a decision to go to war taken so speedily,” he said. “We usually go through long analyses.”
The key military planner was Lieutenant General Dan Halutz, the I.D.F. chief of staff, who, during a career in the Israeli Air Force, worked on contingency planning for an air war with Iran. Olmert, a former mayor of Jerusalem, and Peretz, a former labor leader, could not match his experience and expertise.
In the early discussions with American officials, I was told by the Middle East expert and the government consultant, the Israelis repeatedly pointed to the war in Kosovo as an example of what Israel would try to achieve. The NATO forces commanded by U.S. Army General Wesley Clark methodically bombed and strafed not only military targets but tunnels, bridges, and roads, in Kosovo and elsewhere in Serbia, for seventy-eight days before forcing Serbian forces to withdraw from Kosovo. “Israel studied the Kosovo war as its role model,” the government consultant said. “The Israelis told Condi Rice, ‘You did it in about seventy days, but we need half of that—thirty-five days.’ ”
There are, of course, vast differences between Lebanon and Kosovo. Clark, who retired from the military in 2000 and unsuccessfully ran as a Democrat for the Presidency in 2004, took issue with the analogy: “If it’s true that the Israeli campaign is based on the American approach in Kosovo, then it missed the point. Ours was to use force to obtain a diplomatic objective—it was not about killing people.” Clark noted in a 2001 book, “Waging Modern War,” that it was the threat of a possible ground invasion as well as the bombing that forced the Serbs to end the war. He told me, “In my experience, air campaigns have to be backed, ultimately, by the will and capability to finish the job on the ground.”
Kosovo has been cited publicly by Israeli officials and journalists since the war began. On August 6th, Prime Minister Olmert, responding to European condemnation of the deaths of Lebanese civilians, said, “Where do they get the right to preach to Israel? European countries attacked Kosovo and killed ten thousand civilians. Ten thousand! And none of these countries had to suffer before that from a single rocket. I’m not saying it was wrong to intervene in Kosovo. But please: don’t preach to us about the treatment of civilians.” (Human Rights Watch estimated the number of civilians killed in the NATO bombing to be five hundred; the Yugoslav government put the number between twelve hundred and five thousand.)
Cheney’s office supported the Israeli plan, as did Elliott Abrams, a deputy national-security adviser, according to several former and current officials. (A spokesman for the N.S.C. denied that Abrams had done so.) They believed that Israel should move quickly in its air war against Hezbollah. A former intelligence officer said, “We told Israel, ‘Look, if you guys have to go, we’re behind you all the way. But we think it should be sooner rather than later—the longer you wait, the less time we have to evaluate and plan for Iran before Bush gets out of office.’ ”
Cheney’s point, the former senior intelligence official said, was “What if the Israelis execute their part of this first, and it’s really successful? It’d be great. We can learn what to do in Iran by watching what the Israelis do in Lebanon.”
The Pentagon consultant told me that intelligence about Hezbollah and Iran is being mishandled by the White House the same way intelligence had been when, in 2002 and early 2003, the Administration was making the case that Iraq had weapons of mass destruction. “The big complaint now in the intelligence community is that all of the important stuff is being sent directly to the top—at the insistence of the White House—and not being analyzed at all, or scarcely,” he said. “It’s an awful policy and violates all of the N.S.A.’s strictures, and if you complain about it you’re out,” he said. “Cheney had a strong hand in this.”
The long-term Administration goal was to help set up a Sunni Arab coalition—including countries like Saudi Arabia, Jordan, and Egypt—that would join the United States and Europe to pressure the ruling Shiite mullahs in Iran. “But the thought behind that plan was that Israel would defeat Hezbollah, not lose to it,” the consultant with close ties to Israel said. Some officials in Cheney’s office and at the N.S.C. had become convinced, on the basis of private talks, that those nations would moderate their public criticism of Israel and blame Hezbollah for creating the crisis that led to war. Although they did so at first, they shifted their position in the wake of public protests in their countries about the Israeli bombing. The White House was clearly disappointed when, late last month, Prince Saud al-Faisal, the Saudi foreign minister, came to Washington and, at a meeting with Bush, called for the President to intervene immediately to end the war. The Washington Post reported that Washington had hoped to enlist moderate Arab states “in an effort to pressure Syria and Iran to rein in Hezbollah, but the Saudi move . . . seemed to cloud that initiative.”



The surprising strength of Hezbollah’s resistance, and its continuing ability to fire rockets into northern Israel in the face of the constant Israeli bombing, the Middle East expert told me, “is a massive setback for those in the White House who want to use force in Iran. And those who argue that the bombing will create internal dissent and revolt in Iran are also set back.”
Nonetheless, some officers serving with the Joint Chiefs of Staff remain deeply concerned that the Administration will have a far more positive assessment of the air campaign than they should, the former senior intelligence official said. “There is no way that Rumsfeld and Cheney will draw the right conclusion about this,” he said. “When the smoke clears, they’ll say it was a success, and they’ll draw reinforcement for their plan to attack Iran.”
In the White House, especially in the Vice-President’s office, many officials believe that the military campaign against Hezbollah is working and should be carried forward. At the same time, the government consultant said, some policymakers in the Administration have concluded that the cost of the bombing to Lebanese society is too high. “They are telling Israel that it’s time to wind down the attacks on infrastructure.”
Similar divisions are emerging in Israel. David Siegel, the Israeli spokesman, said that his country’s leadership believed, as of early August, that the air war had been successful, and had destroyed more than seventy per cent of Hezbollah’s medium- and long-range-missile launching capacity. “The problem is short-range missiles, without launchers, that can be shot from civilian areas and homes,” Siegel told me. “The only way to resolve this is ground operations—which is why Israel would be forced to expand ground operations if the latest round of diplomacy doesn’t work.” Last week, however, there was evidence that the Israeli government was troubled by the progress of the war. In an unusual move, Major General Moshe Kaplinsky, Halutz’s deputy, was put in charge of the operation, supplanting Major General Udi Adam. The worry in Israel is that Nasrallah might escalate the crisis by firing missiles at Tel Aviv. “There is a big debate over how much damage Israel should inflict to prevent it,” the consultant said. “If Nasrallah hits Tel Aviv, what should Israel do? Its goal is to deter more attacks by telling Nasrallah that it will destroy his country if he doesn’t stop, and to remind the Arab world that Israel can set it back twenty years. We’re no longer playing by the same rules.”
A European intelligence officer told me, “The Israelis have been caught in a psychological trap. In earlier years, they had the belief that they could solve their problems with toughness. But now, with Islamic martyrdom, things have changed, and they need different answers. How do you scare people who love martyrdom?” The problem with trying to eliminate Hezbollah, the intelligence officer said, is the group’s ties to the Shiite population in southern Lebanon, the Bekaa Valley, and Beirut’s southern suburbs, where it operates schools, hospitals, a radio station, and various charities.
A high-level American military planner told me, “We have a lot of vulnerability in the region, and we’ve talked about some of the effects of an Iranian or Hezbollah attack on the Saudi regime and on the oil infrastructure.” There is special concern inside the Pentagon, he added, about the oil-producing nations north of the Strait of Hormuz. “We have to anticipate the unintended consequences,” he told me. “Will we be able to absorb a barrel of oil at one hundred dollars? There is this almost comical thinking that you can do it all from the air, even when you’re up against an irregular enemy with a dug-in capability. You’re not going to be successful unless you have a ground presence, but the political leadership never considers the worst case. These guys only want to hear the best case.”
There is evidence that the Iranians were expecting the war against Hezbollah. Vali Nasr, an expert on Shiite Muslims and Iran, who is a fellow at the Council on Foreign Relations and also teaches at the Naval Postgraduate School, in Monterey, California, said, “Every negative American move against Hezbollah was seen by Iran as part of a larger campaign against it. And Iran began to prepare for the showdown by supplying more sophisticated weapons to Hezbollah—anti-ship and anti-tank missiles—and training its fighters in their use. And now Hezbollah is testing Iran’s new weapons. Iran sees the Bush Administration as trying to marginalize its regional role, so it fomented trouble.”
Nasr, an Iranian-American who recently published a study of the Sunni-Shiite divide, entitled “The Shia Revival,” also said that the Iranian leadership believes that Washington’s ultimate political goal is to get some international force to act as a buffer—to physically separate Syria and Lebanon in an effort to isolate and disarm Hezbollah, whose main supply route is through Syria. “Military action cannot bring about the desired political result,” Nasr said. The popularity of Iran’s President, Mahmoud Ahmadinejad, a virulent critic of Israel, is greatest in his own country. If the U.S. were to attack Iran’s nuclear facilities, Nasr said, “you may end up turning Ahmadinejad into another Nasrallah—the rock star of the Arab street.”



Donald Rumsfeld, who is one of the Bush Administration’s most outspoken, and powerful, officials, has said very little publicly about the crisis in Lebanon. His relative quiet, compared to his aggressive visibility in the run-up to the Iraq war, has prompted a debate in Washington about where he stands on the issue.
Some current and former intelligence officials who were interviewed for this article believe that Rumsfeld disagrees with Bush and Cheney about the American role in the war between Israel and Hezbollah. The U.S. government consultant with close ties to Israel said that “there was a feeling that Rumsfeld was jaded in his approach to the Israeli war.” He added, “Air power and the use of a few Special Forces had worked in Afghanistan, and he tried to do it again in Iraq. It was the same idea, but it didn’t work. He thought that Hezbollah was too dug in and the Israeli attack plan would not work, and the last thing he wanted was another war on his shift that would put the American forces in Iraq in greater jeopardy.”
A Western diplomat said that he understood that Rumsfeld did not know all the intricacies of the war plan. “He is angry and worried about his troops” in Iraq, the diplomat said. Rumsfeld served in the White House during the last year of the war in Vietnam, from which American troops withdrew in 1975, “and he did not want to see something like this having an impact in Iraq.” Rumsfeld’s concern, the diplomat added, was that an expansion of the war into Iran could put the American troops in Iraq at greater risk of attacks by pro-Iranian Shiite militias.
At a Senate Armed Services Committee hearing on August 3rd, Rumsfeld was less than enthusiastic about the war’s implications for the American troops in Iraq. Asked whether the Administration was mindful of the war’s impact on Iraq, he testified that, in his meetings with Bush and Condoleezza Rice, “there is a sensitivity to the desire to not have our country or our interests or our forces put at greater risk as a result of what’s taking place between Israel and Hezbollah. . . . There are a variety of risks that we face in that region, and it’s a difficult and delicate situation.”
The Pentagon consultant dismissed talk of a split at the top of the Administration, however, and said simply, “Rummy is on the team. He’d love to see Hezbollah degraded, but he also is a voice for less bombing and more innovative Israeli ground operations.” The former senior intelligence official similarly depicted Rumsfeld as being “delighted that Israel is our stalking horse.”
There are also questions about the status of Condoleezza Rice. Her initial support for the Israeli air war against Hezbollah has reportedly been tempered by dismay at the effects of the attacks on Lebanon. The Pentagon consultant said that in early August she began privately “agitating” inside the Administration for permission to begin direct diplomatic talks with Syria—so far, without much success. Last week, the Times reported that Rice had directed an Embassy official in Damascus to meet with the Syrian foreign minister, though the meeting apparently yielded no results. The Times also reported that Rice viewed herself as “trying to be not only a peacemaker abroad but also a mediator among contending parties” within the Administration. The article pointed to a divide between career diplomats in the State Department and “conservatives in the government,” including Cheney and Abrams, “who were pushing for strong American support for Israel.”
The Western diplomat told me his embassy believes that Abrams has emerged as a key policymaker on Iran, and on the current Hezbollah-Israeli crisis, and that Rice’s role has been relatively diminished. Rice did not want to make her most recent diplomatic trip to the Middle East, the diplomat said. “She only wanted to go if she thought there was a real chance to get a ceasefire.”
Bush’s strongest supporter in Europe continues to be British Prime Minister Tony Blair, but many in Blair’s own Foreign Office, as a former diplomat said, believe that he has “gone out on a particular limb on this”—especially by accepting Bush’s refusal to seek an immediate and total ceasefire between Israel and Hezbollah. “Blair stands alone on this,” the former diplomat said. “He knows he’s a lame duck who’s on the way out, but he buys it”—the Bush policy. “He drinks the White House Kool-Aid as much as anybody in Washington.” The crisis will really start at the end of August, the diplomat added, “when the Iranians”—under a United Nations deadline to stop uranium enrichment—“will say no.”
Even those who continue to support Israel’s war against Hezbollah agree that it is failing to achieve one of its main goals—to rally the Lebanese against Hezbollah. “Strategic bombing has been a failed military concept for ninety years, and yet air forces all over the world keep on doing it,” John Arquilla, a defense analyst at the Naval Postgraduate School, told me. Arquilla has been campaigning for more than a decade, with growing success, to change the way America fights terrorism. “The warfare of today is not mass on mass,” he said. “You have to hunt like a network to defeat a network. Israel focussed on bombing against Hezbollah, and, when that did not work, it became more aggressive on the ground. The definition of insanity is continuing to do the same thing and expecting a different result.”



There is no hope, but I may be wrong.
Reread Thucydides: "Hubris ends in Nemesis"

"The single greatest threat to our democracy is the insecurity of our voting system," warns Kennedy. "Whoever controls the voting machines can control who wins the votes."

Thilo Ullmann
Saratoga Springs, NY

http://midnightepiphanies.blogspot.com
If you have not recently visited my blog please do. I have posted a lot of new material. Please give me your comments.


On Aug 19, 2006, at 5:02 PM, PellKenn@aol.com wrote:

eegads....
-pell

The WaShington PoSt
Another 'Mission Accomplished' Moment?

By Dan Froomkin
Special to washingtonpost.com
Tuesday, August 15, 2006; 1:20 PM


President Bush's startling assertion yesterday -- that at the end of 33 days of warfare between Israel and the Hezbollah militia, Hezbollah had been defeated -- once again raises questions about his ability to acknowledge reality when things don't turn out the way he intended.
Here, from the transcript of his appearance at the State Department, are his exact words: "Hezbollah started the crisis, and Hezbollah suffered a defeat in this crisis. And the reason why is, is that first, there is a new -- there's going to be a new power in the south of Lebanon, and that's going to be a Lebanese force with a robust international force to help them seize control of the country, that part of the country."
My first question: Did he really mean to say that?
Bush clearly intended to blame every bit of the terrible carnage on Hezbollah, even though most of it was inflicted by Israel. That point, he made over and over again. And his central point -- also controversial, but not new -- was this: "The conflict in Lebanon is part of a broader struggle between freedom and terror that is unfolding across the region."
But the conclusion that Hezbollah had been defeated was a rare, possibly unscripted moment of news-making amid a public appearance heavy on timeworn talking points about the march to freedom.
Furthermore, the White House position on winners and losers as expressed by spokesman Tony Snow just hours earlier was noncommittal.
"Q As you look at this, the month-long war in the Mideast, who won?
"MR. SNOW: I'm not sure -- right now what's won is diplomacy has won."
My second question: If Bush did mean to say it, how will he and his aides defend it?
The defeat of Hezbollah was clearly Bush's goal in stalling the international drive for a humanitarian cease-fire for a month. White House hawks, led by Vice President Cheney, argued that Israel should be given time to score a major military victory in a proxy war against Iran.
But Bush's insistence that Hezbollah lost appears to be wishful thinking.
Hezbollah, by most accounts, suffered some military setbacks but has emerged in a stronger political position than ever before. Israel, by contrast, is generally considered to have lost its aura of military invincibility. American clout in the region has taken a big hit. Lebanon's fragile democracy has suffered a terrible blow. And the biggest losers, of course, were the people of Lebanon.

Friday, August 18, 2006

From Ha'aretz, Jerusalem

A far cry from Ben-Gurion

The war has united the Israeli public - in its distrust for leaders who act without thinking

Yoel Marcus
Saturday August 19, 2006
The Guardian

Never has a new government with a line-up of fresh faces and ambitious goals been entangled in so many foolish affairs within such a short span of time as that of Ehud Olmert: a president suspected of sexual harassment; an environmental affairs minister accused of election bribery; a justice minister facing charges of indecent behaviour; a chief of staff who liquidated his stock portfolio two hours before the war; a defence minister who wasn't aware of any missile threat; and a prime minister who raced into war without due consideration of its justness and consequences.
Much has been said and written about the wisdom of launching a full-scale war instead of making do with a retaliatory operation after the kidnapping of two soldiers; about the first Israeli government to allow its citizens to be bombarded by 4,000 missiles from a terrorist organisation; about a million Israeli refugees making a beeline from north to south; about the tremendous loss of life and property. Who would have imagined, with all our military might, that we would not be victorious in a war where Israel was Goliath and Hizbullah was David?

Blindly, without thinking, Israel volunteered to leap for the second time into the Lebanese bog. With an army of reserve soldiers sitting there until the multinational force arrives, it's only a matter of time before Hizbullah creeps out of its lair and batters us with roadside bombs and suicide bombers.

At the moment, it doesn't feel like things are under control. It is far from certain that the Olmert administration has an agenda that will allow it to survive another three-and-a-half years in office. What we do know, sizing up this war, is that the government operated backward. First it acted, and then it sat down to think.

David Ben-Gurion used to shut himself up for days before important decisions. Rather than look before you leap, the Olmert administration was guided by the opposite principle: leap before you look. The bombastic threats against the enemy, the promises of a new Middle East, the talk about disarming Hizbullah and ending the rocket fire - it was more a shot in the dark than a premeditated plan.

The outcome of the war has exposed our weak points. Apart from President Bush, who says we won, our overuse of air power and the huge damage we inflicted on Lebanon and Lebanese infrastructure have prompted the world to change its mind about the justification of our actions. Hizbullah survived with most of its arsenal intact, and can always count on its patrons to replenish it. That, and the fact that it stands a good chance of becoming part of the Lebanese establishment and winning the elections, has prompted Assad Jr to rattle his sabre.

Israel is still toying with the dangerous idea of bumping off Hassan Nasrallah. When his predecessor, Abbas Musawi, was assassinated, Hizbullah blew up a major Jewish centre in Argentina, and we were saddled with an heir who is wilier by far.

In the old days, when a Jewish mother wanted to brag about her son, she would say he had the head of a cabinet minister. Today, it might be grounds for libel. With a million refugees wandering the country, millions of dollars of economic damage and the trauma of thousands of missiles hitting our homes, there is no question that the public is going to rethink its trust in a government that indulges in such hasty decision-making. With so many questions in the air and a political tsunami on the way, it's time to get set for early elections.

· Yoel Marcus is a columnist for the Israeli newspaper Ha'aretz, where a longer version of this article first appeared Haaretz.com

Monday, July 31, 2006

The role of USA as arms supplier to israel

Press Overlooks U.S. Role as Arms Merchant in Mideast Conflict
For better or worse, the U.S. has a special role in the current conflict as supplier of the best weapons money can buy to one side. Yet the media nearly always underplays this angle, even though it has enormous consequences, not just for those under fire in Lebanon but for Americans at home.

By Greg Mitchell

(July 27, 2006) -- The cable news networks must be getting attacked, by someone, for offering relentless gavel-to-gavel coverage of the current crisis in the Middle East, for hosts or producers for three different cable news programs have asked me this week if I thought they were going overboard. They all seemed relieved, and surprised, when I answered no, although my reason for saying so included a criticism of their coverage, and that provided by nearly all newspapers.

The conflict would be worth massive attention on its own merits (or demerits), but what really makes it so significant for an American audience is our own deep involvement in that war and the possible dire consequences for our country. The issue does not get much play — Fox News, for example, seems to be more concerned about Hezbollah sneaking agents over the Mexican or Canadian borders into the U.S.

Simply put: Those are largely American made, supplied, and/or paid for missiles falling on Lebanon today, emerging from jets, tanks and artillery linked to the USA. Much of it could be described as your tax dollars at work -- or the best weapons money can buy. In all, Israel has received since 2001 about $10.5 billion in Foreign Military Financing (FMF) from the U.S., the most of any country, while also spending $6.3 billion on U.S. arms deliveries.

While the U.S. press -- and leading liberal bloggers -- pretty much ignores this, the media abroad does not, and none of it is lost on those who live in or near the Middle East. In this country we read or hear countless references to “Iranian-supplied rockets” or “weapons provided by Syria” but when is that last time you heard a reference to a particular Israeli jet or missile that was sent over by our country?

If you think we should be proud of arming the assault on Lebanon’s infrastructure and civilian neighborhoods, fine. If you are appalled, or worried about how others view this, okay. In either case, you might want to read on, because you won’t see much of this in your local paper.

Probably the most publicity this received lately came just days ago when the U.S. announced it would be providing $30 million in relief aid to Lebanon—while at the same time rushing new weapons to Israel. Asked if there were a contradiction between U.S. arms sales to Israel and aid supplies to Lebanon, U.S. Ambassador Jeffrey Feltman said Washington's position was based on "two pillars to how we need to deal with the conflict. One pillar is humanitarian assistance. ... The other is to find conditions for a sustainable cease-fire."

Space does not allow a full accounting of U.S. arms shipments to Israel in the past year, but to cite just one current budget line: “100 Guided Bomb Units (GBU-28) that include: BLU-113 A/B penetration warhead.” That only cost $30 million. Another budget line for $319 million cites “5,000 Joint Direct Attack Munitions (JDAM) tail kits.”

These can be dropped from the air by some of the 102 F-16 aircraft sent to Israel since 2001 (price tag: over $4.5 billion). And those aircraft will stay in the air, thanks to emergency approval last week by the U.S. for $210 million in JP-8 jet fuel to go to the Israeli military. Israel also has from the U.S. over 700 M-60 tanks, 89 F-15 combat aircraft, missiles and bombs of all kinds and scores of attack helicopters.

One of the more obscure items in that arsenal, however, came to the fore this week, although it got little notice in the mainstream press.

Human Rights Watch, which has no dog in this fight – it has storngly condemned the Hamas and Hizbollah rockets attacks, for example – issued a bulletin on Monday, revealing that Israel has used artillery-fired "cluster" bombs in populated areas of Lebanon, producing documented civilian casualties. “Cluster munitions are unacceptably inaccurate and unreliable weapons when used around civilians,” said Kenneth Roth, executive director of Human Rights Watch. “They should never be used in populated areas.”

Newsweek online confirmed the report today, with photos, adding, "Israel, under pressure from the United States, had not used cluster munitions in Lebanon since 1982."

The cluster shells explode in the air and scatter hundreds of tiny bomblets in a wide area. Because of the high "dud" rate for the bomblets, civilians who step on them are killed months later.

Human Rights Watch researchers photographed cluster munitions among the arsenal of Israel Defense Forces (IDF) artillery teams stationed on the Israeli-Lebanese border on July 23. The photographs show M483A1 Dual Purpose Improved Conventional Munitions which, of course, are U.S.-produced and -supplied. Human Rights Watch "believes that the use of cluster munitions in populated areas may violate the prohibition on indiscriminate attacks contained in international humanitarian law,” it said in a statement, calling on Israel to cease and desist. The group earlier established that the use of cluster munitions in Iraq caused more civilian casualties than any other factor in the early U.S.-led military operations in 2003.

But all of this leads to a final, perhaps hopeful, angle underplayed by the press. That is: The fact that the U.S. is such a strong patron potentially gives us enormous influence in pressuring Israel to exercise restraint or accept a ceasefire. Newspaper editorial pages, which with rare exception, shamefully gave Israel a blank check to bomb at will during the first two weeks of the air assault, can make up for lost time now.

“The billions of dollars of U.S. arms and aid it provides every year gives the Bush administration substantial leverage,” observed William Hartung and Frida Berrigan of the World Policy Institute in New York this week. “Without at least discussing U.S. military support for Israel, it will be difficult—if not impossible—for Americans to understand the options available to our government in this crisis.”

*
SATURDAY UPDATE

From The New York Times, July 29:

"A large oil spill and fire caused by Israeli bombing have sent an oil slick traveling up the coast of Lebanon to Syria, threatening to become the worst environmental disaster in the country’s history and engulfing this town in smoke. 'The escalating Israeli attacks on Lebanon did not only kill its civilians and destroy its infrastructure, but they are also annihilating its environment,' warned Green Line, a Lebanese environmental group, in a statement issued Thursday. 'This is one of the worst environmental crises in Lebanese history.'

"The most significant damage has come from airstrikes on an oil storage depot at the edge of Jiyeh on July 13 and 15. Oil spewed into the Mediterranean Sea and a fire erupted that has been burning ever since."

From Reuters, July 29:

"President Bush apologized on Friday to British Prime Minister Tony Blair after Britain complained Washington had not followed correct procedures for sending bombs to Israel via a British airport, a British official said. The British government had formally complained to the United States over its use of a British airport for transiting bombs to Israel.

"Blair's spokesman told reporters traveling with Blair that Bush raised the issue briefly at the start of his meeting with Blair at the White House. 'President Bush did apologize for the fact that proper procedures were not followed,' the spokesman said. British media reported on Wednesday that aircraft carrying 'bunker-busting' bombs from the United States to Israel refueled at Prestwick airport in Scotland over the weekend."






Greg Mitchell (gmitchell@editorandpublisher.com) is editor of E&P.



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Sunday, July 30, 2006

Your tax dollars at work

http://www.nytimes.com/2006/07/30/world/middleeast/30reconstruct.html?pagewanted=print

July 30, 2006
Audit Finds U.S. Hid Cost of Iraq Projects

By JAMES GLANZ
BAGHDAD, Iraq, July 29 — The State Department agency in charge of $1.4 billion in reconstruction money in Iraq used an accounting shell game to hide ballooning cost overruns on its projects there and knowingly withheld information on schedule delays from Congress, a federal audit released late Friday has found.

The agency hid construction overruns by listing them as overhead or administrative costs, according to the audit, written by the Special Inspector General for Iraq Reconstruction, an independent office that reports to Congress, the Pentagon and the State Department.

Called the United States Agency for International Development, or A.I.D., the agency administers foreign aid projects around the world. It has been working in Iraq on reconstruction since shortly after the 2003 invasion.

The report by the inspector general’s office does not give a full accounting of all projects financed by the agency’s $1.4 billion budget, but cites several examples.

The findings appeared in an audit of a children’s hospital in Basra, but they referred to the wider reconstruction activities of the development agency in Iraq. American and Iraqi officials reported this week that the State Department planned to drop Bechtel, its contractor on that project, as signs of budget and scheduling problems began to surface.

The United States Embassy in Baghdad referred questions about the audit to the State Department in Washington, where a spokesman, Justin Higgins, said Saturday, “We have not yet had a chance to fully review this report, but certainly will consider it carefully, as we do all the findings of the inspector general.”

Bechtel has said that because of the deteriorating security in Basra, the hospital project could not be completed as envisioned. But Mr. Higgins said: “Despite the challenges, we are committed to completing this project so that sick children in Basra can receive the medical help they need. The necessary funding is now in place to ensure that will happen.”

In March 2005, A.I.D. asked the Iraq Reconstruction and Management Office at the United States Embassy in Baghdad for permission to downsize some projects to ease widespread financing problems. In its request, it said that it had to “absorb greatly increased construction costs” at the Basra hospital and that it would make a modest shift of priorities and reduce “contractor overhead” on the project.

The embassy office approved the request. But the audit found that the agency interpreted the document as permission to change reporting of costs across its program.

Referring to the embassy office’s approval, the inspector general wrote, “The memorandum was not intended to give U.S.A.I.D. blanket permission to change the reporting of all indirect costs.”

The hospital’s construction budget was $50 million. By April of this year, Bechtel had told the aid agency that because of escalating costs for security and other problems, the project would actually cost $98 million to complete. But in an official report to Congress that month, the agency “was reporting the hospital project cost as $50 million,” the inspector general wrote in his report.

The rest was reclassified as overhead, or “indirect costs.” According to a contracting officer at the agency who was cited in the report, the agency “did not report these costs so it could stay within the $50 million authorization.”

“We find the entire agreement unclear,” the inspector general wrote of the A.I.D. request approved by the embassy. “The document states that hospital project cost increases would be offset by reducing contractor overhead allocated to the project, but project reports for the period show no effort to reduce overhead.”

The report said it suspected that other unreported costs on the hospital could drive the tab even higher. In another case cited in the report, a power station project in Musayyib, the direct construction cost cited by the development agency was $6.6 million, while the overhead cost was $27.6 million.

One result is that the project’s overhead, a figure that normally runs to a maximum of 30 percent, was a stunning 418 percent.

The figures were even adjusted in the opposite direction when that helped the agency balance its books, the inspector general found. On an electricity project at the Baghdad South power station, direct construction costs were reported by the agency as $164.3 million and indirect or overhead costs as $1.4 million.

That is just 0.8 percent overhead in a country where security costs are often staggering. A contracting officer told the inspector general that the agency adjusted the figures “to stay within the authorization for each project.”

The overall effect, the report said, was a “serious misstatement of hospital project costs.” The true cost could rise as high as $169.5 million, even after accounting for at least $30 million pledged for medical equipment by a charitable organization.

The inspector general also found that the agency had not reported known schedule delays to Congress. On March 26, 2006, Bechtel informed the agency that the hospital project was 273 days behind, the inspector general wrote. But in its April report to Congress on the status of all projects, “U.S.A.I.D. reported no problems with the project schedule.”

In a letter responding to the inspector general’s findings, Joseph A. Saloom, the newly appointed director of the reconstruction office at the United States Embassy, said he would take steps to improve the reporting of the costs of reconstruction projects in Iraq. Mr. Saloom took little exception to the main findings.

In the letter, Mr. Saloom said his office had been given new powers by the American ambassador in Baghdad, Zalmay Khalilzad, to request clear financing information on American reconstruction projects. Mr. Saloom wrote that he agreed with the inspector general’s conclusion that this shift would help “preclude surprises such as occurred on the Basra hospital project.”

“The U.S. Mission agrees that accurate monitoring of projects requires allocating indirect costs in a systematic way that reflects accurately the true indirect costs attributable to specific activities and projects, such as a Basra children’s hospital,” Mr. Saloom wrote.

Friday, July 28, 2006

Reign of Error by Paul Krugman

July 28, 2006
Op-Ed Columnist
Reign of Error

By PAUL KRUGMAN
Amid everything else that’s going wrong in the world, here’s one more piece of depressing news: a few days ago the Harris Poll reported that 50 percent of Americans now believe that Iraq had weapons of mass destruction when we invaded, up from 36 percent in February 2005. Meanwhile, 64 percent still believe that Saddam had strong links with Al Qaeda.

At one level, this shouldn’t be all that surprising. The people now running America never accept inconvenient truths. Long after facts they don’t like have been established, whether it’s the absence of any wrongdoing by the Clintons in the Whitewater affair or the absence of W.M.D. in Iraq, the propaganda machine that supports the current administration is still at work, seeking to flush those facts down the memory hole.

But it’s dismaying to realize that the machine remains so effective.

Here’s how the process works.

First, if the facts fail to support the administration position on an issue — stem cells, global warming, tax cuts, income inequality, Iraq — officials refuse to acknowledge the facts.

Sometimes the officials simply lie. “The tax cuts have made the tax code more progressive and reduced income inequality,” Edward Lazear, the chairman of the Council of Economic Advisers, declared a couple of months ago. More often, however, they bob and weave.

Consider, for example, Condoleezza Rice’s response a few months ago, when pressed to explain why the administration always links the Iraq war to 9/11. She admitted that Saddam, “as far as we know, did not order Sept. 11, may not have even known of Sept. 11.” (Notice how her statement, while literally true, nonetheless seems to imply both that it’s still possible that Saddam ordered 9/11, and that he probably did know about it.) “But,” she went on, “that’s a very narrow definition of what caused Sept. 11.”

Meanwhile, apparatchiks in the media spread disinformation. It’s hard to imagine what the world looks like to the large number of Americans who get their news by watching Fox and listening to Rush Limbaugh, but I get a pretty good sense from my mailbag.

Many of my correspondents are living in a world in which the economy is better than it ever was under Bill Clinton, newly released documents show that Saddam really was in cahoots with Osama, and the discovery of some decayed 1980’s-vintage chemical munitions vindicates everything the administration said about Iraq’s weapons of mass destruction. (Hyping of the munitions find may partly explain why public belief that Saddam had W.M.D. has made a comeback.)

Some of my correspondents have even picked up on claims, mostly disseminated on right-wing blogs, that the Bush administration actually did a heck of a job after Katrina.

And what about the perceptions of those who get their news from sources that aren’t de facto branches of the Republican National Committee?

The climate of media intimidation that prevailed for several years after 9/11, which made news organizations very cautious about reporting facts that put the administration in a bad light, has abated. But it’s not entirely gone. Just a few months ago major news organizations were under fierce attack from the right over their supposed failure to report the “good news” from Iraq — and my sense is that this attack did lead to a temporary softening of news coverage, until the extent of the carnage became undeniable. And the conventions of he-said-she-said reporting, under which lies and truth get equal billing, continue to work in the administration’s favor.

Whatever the reason, the fact is that the Bush administration continues to be remarkably successful at rewriting history. For example, Mr. Bush has repeatedly suggested that the United States had to invade Iraq because Saddam wouldn’t let U.N. inspectors in. His most recent statement to that effect was only a few weeks ago. And he gets away with it. If there have been reports by major news organizations pointing out that that’s not at all what happened, I’ve missed them.

It’s all very Orwellian, of course. But when Orwell wrote of “a nightmare world in which the Leader, or some ruling clique, controls not only the future but the past,” he was thinking of totalitarian states. Who would have imagined that history would prove so easy to rewrite in a democratic nation with a free press?


Copyright 2006 The New York Times Company

Wednesday, July 19, 2006

The rise of the Super Rich

July 19, 2006
Talking Points
The Rise of the Super-Rich

By TERESA TRITCH
The gap between rich and poor is unfortunately an old story.

It is the stuff of parables and literature. It is a force in social history and political economy, from electoral campaigns to reform movements and revolutions.

But in the United States today, there’s a new twist to the familiar plot. Income inequality used to be about rich versus poor, but now it’s increasingly a matter of the ultra rich and everyone else. The curious effect of the new divide is an economy that appears to be charging ahead, until you realize that the most of the people in it are being left in the dust. President Bush has yet to acknowledge the true state of affairs, though it’s at the root of his failure to convince Americans that the good times are rolling.

The president’s lack of attention may be misplaced optimism, or it could be political strategy. Acknowledging what’s happening would mean having to rethink his policies, not exactly his strong suit.

But the growing income gap — and the rise of the super-rich — demands attention. It is making America a less fair society, and a less stable one.

I. The Growing Divide

Anyone who has driven through the new neighborhoods filled with “McMansions” that have arisen near most cities, or seen the brisk business that luxury stores are doing, has an anecdotal sense that some Americans are making a lot of money right now.

But there is no need to rely on anecdotal evidence.

Thomas Piketty, of the École Normale Supérieure in Paris, and Emmanuel Saez of the University of California at Berkeley recently updated their groundbreaking study on income inequality(pdf), and their findings are striking.

The new figures show that from 2003 to 2004, the latest year for which there is data, the richest Americans pulled far ahead of everyone else. In the space of that one year, real average income for the top 1 percent of households — those making more than $315,000 in 2004 — grew by nearly 17 percent. For the remaining 99 percent, the average gain was less than 3 percent, and that probably makes things look better than they really are, since other data(pdf), most notably from the Census Bureau, indicate that the average is bolstered by large gains among the top 20 percent of households. In all, the top 1 percent of households enjoyed 36 percent of all income gains in 2004, on top of an already stunning 30 percent in 2003.

Some of the gains at the top reflect capitalism’s robust reward for the founders of companies like Microsoft, Google and Dell. But most of it is due to the unprecedented largesse being heaped on executives and professionals, in the form of salary, bonuses and stock options. A recent study done for the Business Roundtable(pdf), a lobbying group for chief executives, shows that median executive pay at 350 large public companies was $6.8 million in 2005. According to the Wall Street Journal, that’s 179 times the pay of the average American worker. The study is intended to rebut much higher estimates made by other researchers, but it does little to quell the sense that executive pay is out of whack. The Journal's Alan Murray pointed out recently, the study’s calculation of executive pay is widely criticized as an understatement because, as a measurement of the median, it is largely unaffected by the eight or nine-digit pay packages that have dominated the headlines of late.

Rich people are also being made richer, recent government data shows, by strong returns on investment income. In 2003, the latest year for which figures are available, the top 1 percent of households owned 57.5 percent of corporate wealth, generally dividends and capital gains, up from 53.4 percent a year earlier.

The Center on Budget and Policy Priorities, a Washington think tank, compared the latest data from Mr. Piketty and Mr. Saez to comprehensive reports on income trends from the Congressional Budget Office. Every way it sliced the data, it found a striking share of total income concentrated at the top(pdf) of the income ladder as of 2004.

• The top 10 percent of households had 46 percent of the nation’s income, their biggest share in all but two of the last 70 years.

• The top 1 percent of households had 19.5 percent (see graph).

• The top one-tenth of 1 percent of households actually received nearly half of the increased share going to the top 1 percent.

These disparaties seem large, and they are. (Though the latest availabe data is from 2004, there are virtually no signs that the basic trend has changed since then.) The top 1 percent held a bigger share of total income than at any time since 1929, except for 1999 and 2000 during the tech stock bubble. But what makes those disparities particularly brutal is that unlike the last bull market of the late 1990's — when a proverbial rising tide was lifting all boats — the rich have been the only winners lately. According to an analysis by Goldman Sachs, for most American households — the bottom 60 percent — average income grew by less than 20 percent from 1979 to 2004, with virtually all of those gains occurring from the mid- to late 1990's. Before and since, real incomes for that group have basically flatlined.

The best-off Americans are not only winning by an extraordinary margin right now. They are the only ones who are winning at all.

The result has been, as Andrew Hacker, a political science professor at Queens College, has observed in a recent article in the New York Review of Books, “more billionaires, more millionaires and more six-figure families.”

As income has become more concentrated at the top, overall wealth has also become more skewed. According to the latest installation of a survey(pdf) that the Federal Reserve has conducted every three years since 1989, the wealthiest 1 percent of Americans accounted for 33.4 percent of total net worth in 2004, compared to 30.1 percent in 1989. Over the same period, the other Americans in the top 10 percent saw their share of the nation’s net worth basically stagnate, at about 36 percent, while the bottom 50 percent accounted for just 2.5 percent of the wealth in 2004, compared to 3.0 percent in 1989.

II. A Brief History of Income Inequality

While it has long been the case that the rich do better than everyone else, it has not always been true that, in the process, the poor get poorer and the middle class gets squeezed. In post-World War II America, between 1947 and the early 1970’s, all income groups shared in the nation’s economic growth. Poor families actually had a higher growth in real annual income than other groups.

Part of the reason was a sharp rise in labor productivity. As workers produced more, the economy grew and so did compensation — wages, salaries and benefits (see graph). This link between productivity gains and income gains was not automatic. Government policies worked to ensure that productivity gains translated into more pay for Americans at all levels, including regular increases in the minimum wage and greater investment in the social safety net. Full employment was also a government priority. And, of course, unions were strong back then, giving workers bargaining power.

From the mid-1970’s until 1995, the trend reversed. The gap between the rich and poor widened at a rapid clip. The upper echelons — generally the top 20 percent of American households — experienced steady gains, while families in the bottom 40 percent were faced with declining or stagnating incomes.

The growing divide coincided with a slowdown in productivity growth and a reversal in the government policies that had been promoting income equality. Legislators balked at raising the minimum wage and the earned income tax credit, a feature of the tax code that rewards the working poor by ensuring that work pays better than welfare. During the “supply side” era in the 1980’s, fostered by the policies of Ronald Reagan, taxes became less progressive. The goal of full employment was eclipsed by a focus on inflation fighting that remains to this day.

As trade began to play an ever bigger role in the American economy, manufacturing jobs diminished and labor unions declined, reducing workers’ clout in setting compensation. Regulatory laxness reached its apex in the fiscal disaster of the savings and loan meltdown, which drained public resources from socially and economically useful programs and polices.

The trend toward increasing inequality was interrupted, briefly, in the late 1990’s. Productivity growth rebounded, and for a half decade, all income groups participated in the prosperity. Even then, the richest Americans had the best run, propelled largely by stock market gains. In fact, when the stock market hit its all time high in 2000, post-war income concentration also peaked.

But government policies of the day helped to ensure that the lower rungs also had a boost. Clinton-era welfare reforms are often cast as a success story of market-based incentives. But in fact, they were supported by a big increase in the earned income tax credit to help solidify the transition from welfare to work. At the same time, budget deficits were conquered by shared sacrifice — a mix of tax increases and spending cuts affecting all groups. The combination of economic growth and fiscal discipline spurred robust hiring and, if it had endured, could also have strengthened the Social Security safety net by allowing the government to pay down its debts.

That seems like ancient history now. Nearly everyone’s income fell in 2001 and 2002, due to the bursting of the Internet bubble in 2000, recession in 2001 and the ensuing jobless recovery.

In the last few years, though, the trend toward inequality has reasserted itself — with a vengeance.

III. Inequality During the Bush Years

For the last few years, the tide has been rising again, but most boats have been staying where they are, or sinking. One key reason is that the link between rising productivity and broad economic prosperity has been severed. Take another look at this graph. During the years that George W. Bush has been in the White House, productivity growth has been stronger than ever. But the real compensation of all but the top 20 percent of income earners has been flat or falling. Gains in wages, salaries and benefits have been increasingly concentrated at the uppermost rungs of the income ladder.

The Bush administration would like you to believe that the situation will correct itself. Most recently, the new Treasury secretary, Henry M. Paulson, Jr., reiterated the administration’s viewpoint at his confirmation hearing in June when he said that “economic growth, job growth, productivity growth, hopefully will be followed by increases in wage income.”

Well, hoping certainly won’t make it so.

Neither will growth alone. As the post-World War II history of income inequality illustrates, productivity improvement is only one piece of the prosperity puzzle. The economic health of most American families also depends greatly on what government does. If it merely “gets out of the way,” inequality is bound to persist and — if recent results are any indication of future performance — worsen.

The Bush administration, though, has not even done anything as benign as get out of the way. The policies it has pursued — affirmatively and aggressively — have widened the gap between rich and poor.

A. The Tax Wedge

Tax cuts are the most obvious example. The Urban Institute-Brookings Institution Tax Policy Center computed the combined effects of tax cut legislation from 2001, 2003 and 2006. The tax cuts’ contribution to the income gap was significant.

In 2006, the average tax cut for households with incomes of more than $1 million — the top two-tenths of 1 percent — is $112,000 which works out to a boost of 5.7 percent in after tax income. That’s considerably higher than the 5 percent boost garnered by the top 1 percent. It’s far greater than the 2.5 percent increase of the middle fifth of households, and fully 19 times greater than the 0.3 percent gain of the poorest fifth of households.

The disparities are driven by tax cuts that overwhelmingly benefit the most affluent. In 2006, for instance, a tax cut took effect that allows high income households — those with incomes above $200,000 — to take bigger write offs for their children and other expenses, like mortgage interest on a second home. And increasingly, tax cuts are aimed at allowing America’s wealthiest families to amass dynastic wealth — estates to transfer from one generation to the next virtually untouched by taxes. The most obvious example is the gradual reduction in the estate tax that is scheduled through 2010 (and regular attempts to abolish the estate tax altogether). Another huge, though lesser noted example, is the law passed last May allowing all Americans to shelter money in a tax-favored Roth I.R.A. Under previous law, Roths had been off limits to wealthy Americans, precisely because the government did not want to help people amass big estates under the guise of saving for retirement. That sound principle has now been turned on its head.

B. The Assault on Programs for the Poor and Middle Class

Tax cuts are not the only policies widening the gap between the rich and other Americans. Earlier this year, President Bush signed into law a measure that will cut $39 billion over the next five years from domestic programs like Medicaid and food stamps, and $99.3 billion from 2006 to 2015.

The president and the Republican Congress have also done harm to the finances of the poorest Americans — and to the notion of basic fairness — by not increasing the federal minimum wage — it has been $5.15 since 1997 While C.E.O. salaries have been soaring, the take-home pay of waitresses and janitors has been hit hard by inflation.

The Bush administration has also been trying, with mixed success so far, to pursue other policies that would have the effect of shifting money to the rich. The most ominous is its often-repeated desire to “address our long-term unfunded entitlement obligations.” That’s code for making tax cuts for the wealthy permanent while cutting Social Security, which has for 70 years been a major factor in keeping Americans financially secure in their old age.

Over the objections of Congress, the administration overturned time-and-a-half regulation for overtime. For a brief period after Hurricane Katrina, the president suspended by executive proclamation the law that requires federal contractors to pay workers the locally prevailing wage, until Congress objected. For three months after Katrina, the Labor Department suspended the law requiring federal contractors to have an affirmative action hiring plan — an invitation to discrimination and, as such, to income inequality.

C. The Too-Easy Answer

When confronted with evidence of growing income inequality, Bush administration officials invariably say the answer is more and better education. “We are starting to see that the income gap is largely an education gap,” said Trent Duffy, a White House spokesman, in a typical retort last January when tax data showed an increasing concentration of wealth among the highest-income Americans.

Education is critically important to individuals, society, the economy and democracy itself, and deserves strong government support. But it is neither a satisfactory explanation, nor a remedy, for today's income inequality.

There is a strong correlation between one's level of education and one's earning power. The Bush administration is assuming that the correlation will continue to hold in an ever more globalized economy. Writing in the March/April issue of Foreign Affairs, Princeton economist Alan S. Blinder, a former vice-chairman of the Federal Reserve, explains why that view may be mistaken:

Other things being equal, education and skills are, of course, good things; education yields higher returns in advanced societies, and more schooling probably makes workers more flexible and more adaptable to change. But the problem with relying on education as the remedy for job losses is that 'other things' are not remotely close to equal. The critical divide in the future may instead be between those types of work that are easily deliverable through a wire (or via a wireless connection) with little or no diminution in quality and those that are not. And this unconventional divide does not correspond well to traditional distinctions between jobs that require high levels of education and jobs that don’t.
There is already evidence that the benefits of education are not as straightforward as many people seem to believe they are. In his review of “Inequality Matters,” a collection of essays from a conference at New York University conference in 2004, Mr. Hacker, the Queens College political science professor, cited findings from the Bureau of Labor Statistics to show that many college graduates now hold jobs that once required only a high school diploma. Today, according to the bureau, 37 percent of flight attendants have completed college, as have 35 percent of tour escorts, 21 percent of embalmers, and 13 percent of both security guards and casino dealers. Mr. Hacker notes that more people are expected to earn college degrees in preparation for well-paying professions. “But we cannot expect the economy will automatically create better-paid positions to match the cohort acquiring higher education,” he writes.

Underscoring the point, the Bush administration's own Economic Report of the President in 2006 shows that average annual earnings of college graduates fell by 5 percent from 2000 to 2004. In those four years, the difference between the average yearly pay of a college graduate and a high school graduate shrank from 93 percent to 80 percent.

Education is vital. But as Mr. Blinder put it, it “is far from a panacea.”

IV. The Future of Income Inequality

The fast-growing gap between the rich and poor and middle-class Americans is not something that has just happened. The Bush policies are an attempt to dismantle the institutions and norms that have long worked to ameliorate inequities — progressive taxation, the minimum wage, Social Security, Medicaid and so on. The aims that can’t be accomplished outright — like cuts in Social Security — are being teed up by running deficits that could force the shrinkage of government programs, even though the public would not likely condone many such cuts unless compelled to by a fiscal crisis.

Such policies are grounded in an ideology that began taking shape some 30 years ago, when economic policy makers began to disdain the notion of harnessing and protecting society’s collective potential in favor of crafting incentives to align individuals’ interests with those of the market. This campaign has gone by many names — “starve the beast,” or “repeal the New Deal.” Economist Jared Bernstein of the Economic Policy Institute, a Washington think tank, calls that approach “you’re on your own,” or YOYO, and has written a book calling for a new way, dubbed “we’re in this together,” or WITT. (Click here for excerpts from “All Together Now: Common Sense for a Fair Economy,” by Jared Bernstein.)

At issue, in economic terms, is the tradeoff between equality and efficiency: It can be difficult to divide the economic pie more equally without reducing the size of the pie. But it’s not impossible, and doing so is crucial for widespread prosperity. A fair and well-functioning economy will always involve some inequality, which acts a motivator and can be explained by differences in risk-taking, ability and work intensity. But inequality is generally deemed to be dangerous — socially, economically, (and, perhaps, politically) — when it becomes so extreme as to be self-reinforcing, as many researchers suggest is currently the case.

The problem now is that most any attempt to reduce inequality — even a measly increase in the minimum wage — is rejected as misguided. And policies that under one set of economic conditions might allow for a justifiable modicum of inequality are pursued beyond all reason. For instance, the rationale for the tax cuts in 2001 was to return the budget surplus that Mr. Bush inherited from President Clinton. The rationale for the tax cuts in 2002 and 2003 and 2006 was to stimulate the economy. The surplus has long since been replaced by big deficits, the jobless recovery ended three years ago and inequality is on the rise. But tax cutting that overwhelming benefits the rich continues because, we’re told, failure to keep cutting taxes would, somehow, shrink the pie. As Mr. Bernstein of the Economic Policy Institute has put it: “Economics, once an elegant and sensible set of ideas and principles devoted to shaping outcomes for the betterment of society, has been reduced to a restrictive set of ideologically inspired rules devoted to an explanation of why we cannot take the necessary steps to meet the challenges we face.”

Hear, hear.

Lela Moore provided research for this article.

Tuesday, July 18, 2006

The real special relationship: two statesmen speaking!

Guardian Unlimited | Special reports | 'Yo, Blair, how are you doing?' - overheard chat reveals the real special relationship
'Yo, Blair, how are you doing?' - overheard chat reveals the real special relationship

During a quiet moment at the G8 summit yesterday, Tony Blair and George Bush swapped candid views on the Middle East. Only after several minutes did Mr Blair realise that a microphone had been left on

Tuesday July 18, 2006
The Guardian

Bush Yo, Blair. How are you doing?
Blair I'm just...

Bush You're leaving?

Blair No, no, no not yet. On this trade thingy ...[inaudible]

Bush Yeah, I told that to the man.

Blair Are you planning to say that here or not?

Bush If you want me to.

Blair Well, it's just that if the discussion arises ...

Bush I just want some movement.

Blair Yeah.

Bush Yesterday we didn't see much movement.

Blair No, no, it may be that it's not, it may be that it's impossible.
Bush I am prepared to say it.
Blair But it's just I think what we need to be an opposition...

Bush Who is introducing the trade?

Blair Angela [Merkel, the German chancellor].

Bush Tell her to call 'em.

Blair Yes.

Bush Tell her to put him on, them on the spot. Thanks for [inaudible] it's awfully thoughtful of you.

Blair It's a pleasure.

Bush I know you picked it out yourself.

Blair Oh, absolutely, in fact [inaudible].

Bush What about Kofi? [inaudible] His attitude to ceasefire and everything else ... happens.

Blair Yeah, no I think the [inaudible] is really difficult. We can't stop this unless you get this international business agreed.

Bush Yeah.

Blair I don't know what you guys have talked about, but as I say I am perfectly happy to try and see what the lie of the land is, but you need that done quickly because otherwise it will spiral.

Bush I think Condi is going to go pretty soon.

Blair But that's, that's, that's all that matters. But if you ... you see it will take some time to get that together.

Bush Yeah, yeah.

Blair But at least it gives people ...

Bush It's a process, I agree. I told her your offer to ...

Blair Well ... it's only if I mean ... you know. If she's got a ... or if she needs the ground prepared as it were ... Because obviously if she goes out, she's got to succeed, if it were, whereas I can go out and just talk.

Bush You see, the ... thing is what they need to do is to get Syria, to get Hizbullah to stop doing this shit and it's over.

Blair Syria.

Bush Why?

Blair Because I think this is all part of the same thing.

Bush Yeah.

Blair What does he think? He thinks if Lebanon turns out fine, if we get a solution in Israel and Palestine, Iraq goes in the right way ...

Bush Yeah, yeah, he is sweet.

Blair He is honey. And that's what the whole thing is about. It's the same with Iraq.

Bush I felt like telling Kofi to call, to get on the phone to Assad and make something happen.

Blair Yeah.

Bush We are not blaming the Lebanese government.

Blair Is this...? (at this point Blair taps the microphone in front of him and the sound is cut.)

Monday, July 17, 2006

From the Guardian, London

The west must recognise that Israel's agenda is in conflict with its own

The Olmert government, Hizbullah and Hamas are tacitly united in rejection of any moves towards a compromise peace

David Clark
Monday July 17, 2006
The Guardian

Whatever else can be said for or against Israel's escalation of military action against Lebanon, there is little prospect that it will achieve its stated objectives. If Israel couldn't defeat Hizbullah after 18 years in which its army occupied large swaths of Lebanese territory, it is not going to succeed with air strikes and blockades, or even another occupation. The same point applies even more forcefully in the case of Gaza. Every time Israel applies the iron fist in an effort to beat the Palestinians into submission, their resistance simply re-emerges in a more extreme and rejectionist form. Far from fearing Israel's wrath, Hizbullah and Hamas must be rather pleased at their success in provoking it into the sort of over-reaction from which they have always benefited.
Nor does it seem plausible that military action will enable Israel to secure the release of its captured soldiers. The civilian victims of Israel's indiscriminate retaliation have no real influence over the militias that hold them, while the militias themselves are untroubled by the spectacle of public suffering. On the contrary, they thrive on it. In the case of Lebanon, it is possible that acts of collective punishment, such as the destruction of Beirut airport and yesterday's killing of yet more civilians, might divide Hizbullah and its supporters from the rest of the country, but only at the risk of triggering another civil war and creating a vacuum that Israel's enemies in Syria and Iran will find easier to exploit.
In view of all this, it is valid to ask what Israel thinks it is doing. Indeed, this question is implicit in the statements of world leaders at the G8 and elsewhere who have called on Israel to use force proportionately, avoid civilian casualties and refrain from acts that might strengthen Hamas or destabilise Lebanon's fragile political settlement. No one quibbles with Israel's right to defend itself, but doesn't it understand how irresponsible and immoral it is to deliberately escalate the conflict in this way?
The problem is that the premise of the question is false. It assumes that Israel shares our view that a de-escalation followed by negotiation is the best route to a settlement. It assumes, therefore, that when Israeli ministers complain of having "no partner for peace", they actually want one. A much more sensible approach would be to credit them with having the intelligence to know exactly what they are doing and to work backwards from there.
If so, it might become apparent that far from wanting a partner with which to negotiate, the Israeli government is acting with the specific intention of forestalling that possibility. There is nothing particularly new in this. The extremists on both sides have always formed a kind of tacit alliance, with the supporters of "greater Israel" and "no Israel" understanding their joint interest in preventing any moves towards a compromise peace. That is the main reason why Israel encouraged the growth of Hamas as it emerged in the 1980s. Unwilling to negotiate with the secular nationalists of Fatah, even as they were moving towards support for a two-state solution, the Israeli authorities thought it would be a clever idea to promote their Islamist rivals.
In the case of the current crisis, it is no accident that it occurred at precisely the moment when the Palestinian president, Mahmoud Abbas, was gaining the upper hand in the latest round of that struggle. By using the threat of a referendum to force Hamas to accept the existence of Israel as the basis for a final settlement, Abbas had created the most promising opening for peace in six years. Faced with internal division and the loss of political initiative, Hamas militants understood that the only way to prevent it would be to trigger another cycle of violence. In turn, the Israel government, whose interests were also threatened by the Abbas initiative, recognised that it had an equally good reason to oblige. The effect of Hizbullah's intervention and Israel's over-reaction has been to put peace even further down the agenda.
The plain truth is that Israel thinks that it can get more by imposing a solution through force than by negotiation and is not interested in any kind of peace process. The Israeli prime minister, Ehud Olmert, pays lip service to the road map, but he has already received American endorsement for his fallback position, artfully dubbed "unilateral convergence". George Bush has described it as a "bold idea". Armed with the knowledge that he will continue to enjoy American patronage if the road map fails, Olmert has set out to ensure that it does just that. Bush's diplomacy has been truly inept.
It's high time western governments grasped the fundamental truth that Israel is pursuing an agenda that conflicts directly with their own. In the context of the fight against terrorism and the need to promote international cooperation, the west's interest must be to remove the Palestinian question as a source of grievance among mainstream Muslims in a way that guarantees justice for the Palestinians and security for Israel. A settlement of this kind is perfectly feasible and has been outlined in countless documents and initiatives over the years, most recently in the Geneva accords. But the main reason it has proved illusive is that Israel is not, and never has been, prepared to make the territorial compromises required. It still believes that it is entitled to the victor's spoils by annexing large tracts of Palestinian land.
This situation will persist as long as the west remains in denial about the reasons for the ongoing conflict and until the Israeli political establishment is forced to pay a price for its obstinacy. Yet the US remains entirely complicit in its role as Israel's main strategic ally. In the midst of last Friday's onslaught, in which Israeli bombers killed dozens of Lebanese civilians, the Pentagon announced the export of $210m of aviation fuel to help Israel "keep peace and security in the region". Even Britain and other European countries indulge in a form of diplomatic misdirection by focusing one-sidedly on the roles played by Syria and Iran.
The key to resolving the situation in Lebanon lies, as it did throughout the 1970s and 1980s, in finding a solution to the Palestinian question. A viable and successful Palestinian state would rob Hizbullah and its sponsors of the conceit that they are defending helpless Muslims and make it easier for those in the region who oppose them to gain the upper hand. Mahmoud Abbas is the only leader currently working for the kind of negotiated two-state solution the Middle East and the wider world desperately need. But he is being let down by the west at the moment when he had earned the right to expect better. The Palestinian president needs a partner for peace. If Israel will not play that role, the international community must.
· David Clark is a former Labour special adviser at the Foreign Office dkclark@aol.com