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Entries from December 1, 2009 - December 31, 2009

9:40PM

Islamic Finance faces challenge

ARTICLE: Dubai Crisis Tests Laws of Islamic Financing, By HEATHER TIMMONS, New York Times, November 30, 2009

Definitely one to watch: the first-ever defaults within Islamic finance.

New rules are easy when everything's working out, but much harder to retain in crisis. And yet, there's little good to any rules that cannot survive such hard times.

So this is a serious growth process for the region's market players.

As always, with more connectivity comes more demands for transparency.

9:37PM

Smart oil countries look to good tech

ARTICLE: Oil Companies Look to the Future in Iraq, By TIMOTHY WILLIAMS, New York Times, November 30, 2009

So the Western oil companies, contrary to conspiracy thinking, don't get to clean up just yet. And yet, also contrary to such thinking, plenty of smart Iraqis know they need Western technology to achieve what they think is possible for the nation's oil industry in coming years.

Analysts say the deals on three of the country's top fields show that Iraq, after an embarrassing start, may be on a path to joining the world's major oil-producing nations, which could in turn upset the equilibrium in OPEC and increase tensions with the neighboring oil giants Iran and Saudi Arabia. Adding to those strains, development rights to 10 other Iraqi oil fields will be offered to foreign companies at a public auction in Baghdad on Dec. 11.

However, the auction and the contracts come at an awkward time: just months before national elections that could provoke renewed violence or sweep in a new government that could disown the deals.

In the recent deals, the major oil companies have agreed to accept service contracts, in which they earn a fee for each barrel of oil produced. Yet they vastly prefer production-sharing agreements, in which they gain an equity stake in the oil itself. Such deals are far more lucrative to oil companies, but for Iraqis they are reminiscent of the colonial era, when foreign companies controlled the country's oil wealth. "We have shown that we can attract international companies to invest in Iraq and boost production through service contracts," Hussain al-Shahristani, Iraq's oil minister, said recently. "They will not have a share of Iraqi oil, and our country will have total control over production."

But Iraq has also been forced to acknowledge that it cannot hope to revive its decrepit oil industry without the money and the technical expertise of the major companies. Despite strong anti-American sentiments among the Iraqi public, few officials want to refuse American cash.

"We do not have any preferences," said Abdul Hadi al-Hassani, deputy chairman of Parliament's Oil and Gas Committee. "We are interested only in the financial health of the company and in their technical know-how. American companies are well known in the oil sector."

A bit of right-thinking to be tracked, in contrast to that genius in Caracas.

3:21AM

Neocons are Alive and Kicking

chineseUN.png

If you thought the neocons were vanquished, disappearing along with the Bush-Cheney administration, better think again. Their mindset still animates most of what the GOP offers in opposition to President Barack Obama's magical apology tour. For while the president won a Nobel Peace Prize for his heartfelt mea maxima culpa, Charles Krauthammer & Co. see no reason to surrender America's two-decades-and-counting "era of maximum dominance" to the Chinese simply because Beijing holds the pink slip on our national economy.

Continue reading today's New Rules column at WPR.

11:34PM

IC says: Abandon hope!

PAPER: QICR Scenarios: Alternative Futures the IC Could Face, Office of the Director of National Intelligence, January 2009

Key excerpts:

Scenario 1: A World Without the West
In 2025, the Shanghai Cooperation Organization (SCO) expands to include Russia, China, India, and Iran, creating a fragile new coalition. Antagonism toward Western protectionism and complementary interests drives this coalition. Although the U.S. and its European allies remain an important counterweight, the world focuses on the dynamic of this new coalition, hence a "World Without the West." Framing their cooperation as a new counterbalance to "Washington Consensus" economics and American military preeminence, these countries leverage their vast energy reserves, huge populations, and high level of technological development to challenge U.S. economic, military, and technological supremacy.

Scenario 2: BRIC's Bust Up
In 2025, a series of energy and resource shortages, particularly acute in Asia, disrupt what had promised to be a steady period of growth led by the BRIC countries. Governments around the world take a zero-sum attitude to international affairs and retreat from trade commitments, adopting mercantilist economic growth slows as states champion domestic technology initiatives and national conglomerates. These actions constrain the flow of goods, capital, and information across borders. Intense energy competition and transient shifting alliances lead to a rise in local skirmishes and an escalating threat of interstate war. This lack of international cohesion allows nuclear weapons to proliferate in Asia and the Middle East, leading to a precarious balance of mutually deterrent powers that in some ways resembles a 21st-century replay of the years before 1914.

Scenario 3: October Surprise
In the 2025 world called October Surprise, governments and global elites pursue short-term economic gain above all else. Their aggressive focus on growth, efficient markets, and robust trade eventually causes financial volatility as a result of poorly organized, uncoordinated responses to crises in global health, environmental change, and other international issues. The global economic system appears robust and successfully promotes prosperity, but this type of globalization also has a dark side: trafficking of illicit goods, human rights violations, and a widening gap between rich and poor. Health and environmental disasters--some sudden and others slow-burning--frequently overwhelm domestic agencies, which are increasingly understaffed. Climate change becomes an acute concern, exacerbating resource scarcities and damaging coastal urban centers. One such climate disaster, a hurricane striking Manhattan with little warning (the "October Surprise") during a major world conference, demonstrates the danger posed by this world.

Scenario 4: Politics Is Not Always Local
By 2025 a subtle but unmistakable power shift has enabled identity-centric groups to gradually supplant the authority of traditional nation states. The rapid diffusion of mobile phones and internet connectivity enables much of the world's population to join networks that transcend national borders, giving voice to latent desires for affiliation based on religion, ethnicity, class, ideology, and other elements of self definition. National leaders frequently find their authority challenged in a variety of indirect ways: megacities forge their own policies and partnerships, a multitude of social and political movements lobby for change, and ideologically motivated groups cause violent disruptions. Peace and prosperity are far from universal as a rapidly changing cast of these non-state a chaotic political environment.

As always, uniformly bad for the West as a whole and the U.S. in particular, with--apparently--America being clueless along all paths.

But this is the reality of the IC's ideological limits: America must be zeroed out as a character.

Individually, "A World Without the West" has a glorious, non-economic-intelligence to it, showing, I would say, how unlikely a recreation of East-West Cold War dynamics are (but you can't blame them for trying!).

The "BRICs bust up" looks a bit weak after the 2008-09 crisis has passed, as it takes on a vague sort of vibe that says, "Oh yeah! Well, you just wait! Next time they'll all tank!" Frankly, it's just--as it admits--just another attempt to claim that today's globalization is just a rerun of the colonial-era, pre-WWI model. My, that's truly innovative!

Okay, so far we've got a Cold War rerun and the usual pre-WWI Norman-Angel-was-wrong bit.

Then, just to make Al Gore happy, we get a big climate-change-slap-upside-the-head bit that reads like a Toby Emmerich movie plot. Hmmmm, I hope they didn't spend too much money outsourcing that one to Hollywood.

And then, just when I was hoping for a 1930s rerun, we get the now, almost too-familiar bit about states losing all power and we all go back to a pre-Westphalian system, supposes, as this scenario always does, that all these cross-border ties cannot possible live in concert with good and strong governance, even though it's clear that the most globalized states are those featuring strong and ambitious governments.

In sum, a rather sorry lot, full of the usual lack of imagination and stocked with the usual suspects.

Then again, I like my intelligence dumber than my military, my military dumber than my politicians, and my politicians dumber than my businessmen (yes, yes, but just think about the contrary position in each pairing and see if you like that better!).

So how disappointed can I be?

(Thanks: Thomas Cook)

11:22PM

Turkish-Syrian relations warm

ARTICLE: Relations With Turkey Kindle Hopes in Syria, By ROBERT F. WORTH, New York Times, December 14, 2009

A sense of how much impact Turkey's "zero problems"-with-its-neighbors strategy is having on Syria:

Ever since Syria and Turkey lifted their visa restrictions in September, Turkish visitors have poured into this picturesque northern city. Hawkers in Aleppo's ancient souk now call out to shoppers in Turkish, and cross-border commerce has soared. The two countries have embarked on a very public honeymoon, with their leaders talking about each other like long-lost friends.

But this reconciliation is about far more than trade, or the collapse of old Turkish-Arab enmities. At a time of economic and political uncertainty here, the new warmth with Turkey has stirred hopes about Syria's future direction, in areas that include religion, oil and gas, and peace with Israel.

For some here, the new closeness with secular, moderate Turkey represents a move away from Syria's controversial alliance with Iran. For others, it suggests an embrace of Turkey's more open, cosmopolitan society. And for many -- including Syria's president, Bashar al-Assad -- it conjures different dreams of a revitalized regional economy, less vulnerable to Western sanctions or pressure.

Instead of acting like an envoy from Europe, or its bulwark, Turkey now represents its own record of success.

And that's enough to turn heads in Syria.

11:20PM

USG didn't take over the banks after all

ARTICLE: Wells Fargo to Repay U.S., a Coda to the Bailout Era, By ERIC DASH and ANDREW MARTIN, New York Times, December 14, 2009

Remember the good old days when the government was slated to take over the entirety of the banking sector and Wall Street? It seems like so many . . . months ago.

When Washington pressed the nation's largest banks to take billions in federal support last autumn, few protested more loudly than Wells Fargo. On Monday, Wells became the last of the big lenders to rush through a repayment before the end of the year, signifying a fitting bookend to the bailout era.

Geez! Just when we had socialism finally within our grasp!

10:52PM

Civil suits in China are a good sign

ARTICLE: Civil Suit Hearing Held in China's Milk Scandal, By EDWARD WONG, New York Times, November 28, 2009

Worth tracking.

Beijing prefers to execute a couple of top execs, set up a fund, and let it go at that.

But the public wants more direct accountability, thus the civil suit.

Got nothing to do with money. Got to do with justice more directly applied in response to popular pressure.

Good long-term sign on China, to the extent it proceeds.

10:50PM

Newsflash: Israel is responsible for their settlements

EDITORIAL: Diplomacy 101, New York Times, November 27, 2009

A very weak logic here: Obama blamed for Israel's unwillingness to halt settlements, as are the Palestinians, as are the Arabs. Everybody is guilty of holding up the peace process because they want Israel to stop the settlement building. We should have had back-up plans to Netanyahu completely blowing us off while continuing to take our $3B a year in aid--this is the helpful notion offered by the NYT.

Maybe Israel should halt the settlements. Maybe Israel and Israel alone is thus to be blamed for the current deadlock. Maybe any other logic is a bunch of obfuscation.

10:46PM

To criticize Israel is to be anti-semitic, naturally

ARTICLE: In a Home to Free Speech, a Paper Is Accused of Anti-Semitism, By JESSE McKINLEY, New York Times, November 27, 2009

Listen to how the editor of a Berkeley paper is warned off:

"We think that Ms. O'Malley is addicted to anti-Israel expression just as an alcoholic is to drinking," Jim Sinkinson, who has led the campaign to discourage advertisers, wrote in an e-mail message. He is the publisher of Infocom Group, a media relations company. "If she wants to serve and please the East Bay Jewish community, she would be safer avoiding the subject entirely."

Nice touch in a free-speech country: best to avoid the subject entirely or suffer our wrath!

As always, the ex-pats and co-religionists here are far more strident than their in-country brethren, who tend to be more practical. You saw it with the Irish-American crowd for decades on Northern Ireland, and we get it in spades from the Jewish-American cohort on Israel now.

But Israel, by any objective standard, rightfully comes under a lot of criticism for how it continues to handle Gaza and the West Bank. If we, as a country, can go into deep self-reflection over Gitmo, then we can manage the same on Israel's policies vis-a-vis the Palestinians--especially since our aid money makes it possible.

As such, any attempts to shut down critics should be vehemently opposed.

10:29PM

Seriously, we can deter Iran

OP-ED: Why Iran can't be contained, By Danielle Pletka, Washington Post, December 15, 2009

Some classic nonsense: apparently, all the existing nuclear powers, none of whom ever got their way on anything threatening nukes, are all going to be cowed and bullied by Iran's nukes.

Iran is unique! The Sovs, crazy Mao, etc., they were all peons compared to the mighty Persians! Easy to deter!

As for America? We are pussies, unable to pull triggers--as history shows time and again!

Thus, although Pletka can't bring herself to say it out loud (just implying Obama is too much of a coward to consider it), America must strike (because making Israel do it would be "appalling").

Curtis Le May lives and breathes, and he's still a complete strategic jackass.

(Via WPR's Media Roundup)

10:26PM

Connectivity does not create trust

ARTICLE: As ties between India and China grow, so does mistrust, By Emily Wax, Washington Post, December 14, 2009

An enduring myth: sheer connectivity does not create trust, only time plus connectivity can create trust. The initial onset of connectivity where it was lacking in the past brings more distrust and friction and nationalism and racism and . . ..

And yet, we are always stunned when--wow!--ancient enemies are not suddenly the best of friends on the basis of an opening up of trade, as if competing economic interests would all suddenly vanish and every past problem buried deep.

The whole premise of the "new map" was that globalization's advance is destabilizing: you don't have much opportunity to hate others when you have no contact with them.

But the larger point was this: with connectivity comes rules, and as that web thickens, everybody's behavior moderates. So no, no demotion of the nation-state. Rules matter plenty, and the best governments manage the best connectivity. But governments mature just like economies, so don't expect too much from emerging players. They have to grow up just like everybody before them.

(Via WPR's Media Roundup)

4:23PM

Tom around the web

2:58AM

Copenhagen result: good enough

ARTICLE: Many Goals Remain Unmet in 5 Nations' Climate Deal, By JOHN M. BRODER, New York Times, December 18, 2009

I, for one, find no great "victory" or "disappointment" in the vague but suitably vectored outcome at Copenhagen. It struck me as exactly what the world can muster right now and no more or less: definitely not enough for those convinced we're on the road to certain hell, but responsive enough to those of us who see danger and yet aren't convinced--a la Lomborg--that cranking on the CO2 knob is the all-powerful answer to what lies ahead.

And, given the state of knowledge and where the world finds itself today in globalization's advance and the trailing institutions of management (politics always trailing economics and security always trailing networks), I think such an outcome is enough. Better answers await, along with more political will, but not being able to wrap it all up in Copenhagen is far from any disaster--one way or the other.

2:05AM

Nuclear cuts are ok

ARTICLE: U.S. says nuclear agreement is near, By Mary Beth Sheridan, Washington Post, December 19, 2009

As much as I detest Obama's desire for a nuclear-free world, believing the goal to be highly unstable, I have no problem with another modest cut in stockpiles. Truth is, we're heading to a dyad (land and sea but no air) for budgetary reasons (plus, it's safer).

So no big whup and just fine to buttress Obama's foreign policy cred and to make the Russians feel important.

8:31AM

Closing out the year

Got final pages from Esquire for my Feb issue piece. It runs 3-plus pages.

Also today edited my last-of-the-year piece for World Politics Review, as they won't be running columns between the holidays.

So, outside of the blog, my books are closed for the year.

I'll be back 4 Jan at WPR with my "Top-Ten Foreign Policy Wish List for 2010."

Ideas welcomed as comments.

11:23PM

Soft border solution for AfPak

OP-ED: To Beat Al Qaeda, Look to the East, By SCOTT ATRAN, New York Times, December 12, 2009

Very interesting piece that goes along with the notion, long promoted here, that a successful endgame will invariably result in some level of autonomy for the Pashtun inside Afghanistan, if not a soft border concept that would admit there really is no border worth mentioning among the Pashtun spread across Afghanistan and NW Pakistan (where their autonomy has long been encapsulated in the very concept of the "frontier areas" that are considered different, in ruling terms, from the rest of the country).

The end section is the best:

THE secretary of state, Hillary Clinton, and the special envoy to the region, Richard Holbrooke, suggest that victory in Afghanistan is possible if the Taliban who pursue self-interest rather than ideology can be co-opted with material incentives. But as the veteran war reporter Jason Burke of The Observer of London told me: "Today, the logical thing for the Pashtun conservatives is to stop fighting and get rich through narcotics or Western aid, the latter being much lower risk. But many won't sell out."

Why? In part because outsiders who ignore local group dynamics tend to ride roughshod over values they don't grasp. My research with colleagues on group conflict in India, Indonesia, Iran, Morocco, Pakistan and the Palestinian territories found that helping to improve lives materially does little to reduce support for violence, and can even increase it if people feel such help compromises their most cherished values.

Bottom line? Nation-building that seeks to subsume the Pashtun within a larger Afghanistan is doomed to fail. That sort of path historically tends to push the Pashtun toward efforts at controlling Afghanistan as a whole, typically with strong Pakistani backing. The alternative? The Pashtun retain some autonomy within the nation, as they do in Pakistan, and that combo gives Islamabad enough of a feeling of "strategic depth" vis-a-vis India.

Now, the problem with the current overarching surge strategy, in Atran's mind (and I feel like I've met this guy somewhere, at some workshop on this subject)

The original alliance between the Taliban and Al Qaeda was largely one of convenience between a poverty-stricken national movement and a transnational cause that brought it material help. American pressure on Pakistan to attack the Taliban and Al Qaeda in their sanctuary gave birth to the Pakistani Taliban, who forged their own ties to Al Qaeda to fight the Pakistani state.

While some Taliban groups use the rhetoric of global jihad to inspire ranks or enlist foreign fighters, the Pakistani Taliban show no inclination to go after Western interests abroad. Their attacks, which have included at least three assaults near nuclear facilities, warrant concerted action -- but in Pakistan, not in Afghanistan. As Mr. Sageman, the former C.I.A. officer, puts it: "There's no Qaeda in Afghanistan and no Afghans in Qaeda."

So no, we can't fix Afghanistan by pushing Islamabad to quash the sanctuary across the border.

Then, back to history's example of "success"--as it were (sure to warm the hearts of the "coming anarchy" guys):

Pakistan has long preferred a policy of "respect for the independence and sentiment of the tribes" that was advised in 1908 by Lord Curzon, the British viceroy of India who established the North-West Frontier Province as a buffer zone to "conciliate and contain" the Pashtun hill tribes. In 1948, Pakistan's founder, Muhammad Ali Jinnah, removed all troops from brigade level up in Waziristan and other tribal areas in a plan aptly called Operation Curzon.

The problem today is that Al Qaeda is prodding the Pakistani Taliban to hit state institutions in the hopes of provoking a full-scale invasion of the tribal areas by the Pakistani Army; the idea is that such an assault would rally the tribes to Al Qaeda's cause and threaten the state. The United States has been pushing for exactly that sort of potentially disastrous action by Islamabad. But holding to Curzon's line may still be Pakistan's best bet. The key in the Afghan-Pakistani area, as in Southeast Asia, is to use local customs and networks to our advantage. Of course, counterterrorism measures are only as effective as local governments that execute them. Afghanistan's government is corrupt, unpopular and inept.

Besides, there's really no Taliban central authority to talk to. To be Taliban today means little more than to be a Pashtun tribesman who believes that his fundamental beliefs and customary way of life are threatened. Although most Taliban claim loyalty to Afghanistan's Mullah Omar, this allegiance varies greatly. Many Pakistani Taliban leaders -- including Baitullah Mehsud, who was killed by an American drone in August, and his successor, Hakimullah Mehsud -- rejected Mullah Omar's call to forgo suicide bombings against Pakistani civilians.

Now, on to the conundrum, by which our pushing gets only more pushback:

In fact, it is the United States that holds today's Taliban together. Without us, their deeply divided coalition could well fragment. Taliban resurgence depends on support from those notoriously unruly hill tribes in Pakistan's border regions, who are unsympathetic to the original Taliban program of homogenizing tribal custom and politics under one rule.

It wouldn't be surprising if the Taliban were to sever ties to Mr. bin Laden if he became a bigger headache to them than America. Al Qaeda may have close relations to the network of Jalaluddin Haqqani, an Afghan Taliban leader living in Pakistan, and the Shabi Khel branch of the Mehsud tribe in Waziristan, but it isn't wildly popular with many other Taliban factions and forces.

Unlike Al Qaeda, the Taliban are interested in their homeland, not ours. Things are different now than before 9/11. The Taliban know how costly Osama bin Laden's friendship can be. There's a good chance that enough factions in the loose Taliban coalition would opt to disinvite their troublesome guest if we forget about trying to subdue them or hold their territory. This would unwind the Taliban coalition into a lot of straggling, loosely networked groups that could be eliminated or contained using the lessons learned in Indonesia and elsewhere. This means tracking down family and tribal networks, gaining a better understanding of family ties and intervening only when we see actions by Taliban and other groups to aid Al Qaeda or act outside their region.

To defeat violent extremism in Afghanistan, less may be more -- just as it has been elsewhere in Asia.

The reference to Asia goes back to the start of the piece, where Atran details how Salafist radicals are tracked and tamed through such basic police work.

You read something like this, and you want America to admit we can and should nation-build in the non-Pashtun parts of Afghanistan, but also grant some serious autonomy to the Pashtun area and, on that basis, wage a very discrete effort to root out al Qaeda such as it still exists across the border in Pakistan, while not pushing Islamabad too hard on taming the Pakistani Taliban per se (for all the same reasons). In the end, the combined result of such an approach would be to recognize, implicitly, a sort of Pashtunistan with acknowledged borders running within both Pakistan and Afghanistan and with those two states acknowledging a soft border between them. On the basis of that understanding, then, you buy people off appropriately with economic assistance and whatever FDI can be mustered for specific exploitation of natural resources (like the Chinese on copper). Pakistan keeps its sense of strategic depth and the world admits Afghanistan will never be a real state in the traditional sense, but rather a bifurcated reality of a north and a south that will only stay together if both sides are given enough autonomy.

Naive, perhaps, but you see a lot of history along these lines and I find myself migrating back, time and time again, to the concept of the soft border solution.

(Thanks: Jack Ryan)

11:20PM

A good connection: Kazakhstan to China

ARTICLE: New Gas Pipeline From Central Asia Feeds China, By ANDREW E. KRAMER, New York Times, December 14, 2009

We in the West have the tendency to think that Central Asia must be "saved" from the Russian grip by connecting it directly to us, when history says otherwise:

The pipeline is the first major export corridor for natural gas out of the region that does not pass through Russia. It breaks from the Soviet-era design of a pipeline system built to supply Eastern Europe via Russia to the north of Central Asia. The new pipe revives a pre-Soviet view of trade in the region, in which economic exchanges flow east and west, not just through Russia.

"The startup of this pipeline reconstructs the ancient Silk Roads and symbolizes friendship and cooperation," Kazakhstan's president, Nursultan Nazarbayev, said at the ceremony on Monday, the Interfax news agency reported.

Whatever you think of Nazarbayev as a leader, the guy has got some genuine strategic smarts.

(Thanks: stuart abrams)

11:16PM

One of the problems in Pakistan

ARTICLE: Pakistan's Zardari resists U.S. timeline for fighting insurgents, By Karen DeYoung and Griff Witte, Washington Post, December 16, 2009

The basic interlocking problem:

The Pakistani military, which ruled the country for a decade until Zardari's election last year, retains significant control over defense and foreign policy. It has been reluctant to shift its focus away from what it sees as an ongoing threat from neighboring India toward increased counterinsurgency against al-Qaeda and the Taliban. Closer Indian-U.S. ties and the expansion of India's conventional capabilities have increased suspicion of U.S. aims.

Trying to get Pakistan to enforce a hard border to the north while feeling nervous to its south seems a non-starter. We'll get a show for our money alright, but not a lasting effect.

11:14PM

Let's be smart on global warming

OP-ED: Time for a Smarter Approach to Global Warming, By BJORN LOMBORG, Wall Street Journal, DECEMBER 15, 2009

A nice summary piece by Lomborg: we can spend so much stopping CO2 or we can spend a fraction and handle the impacts with relative ease.

(Via WPR's Media Roundup)

11:11PM

Not-so-supreme leader

ARTICLE: Behind scuttled nuke pact, Iran's regime in turmoil, By Ray Takeyh, Boston Globe, December 17, 2009

The guts of the argument:

In one of the ironies of the Islamic Republic, the principal proponent of engagement with the United States has always been its noxious president. Through a series of meandering letters to President George W. Bush and maladroit attempts to reach out to Obama, Ahmadinejad has sought dialogue on his terms. He apparently perceived that he could engage the United States without making concessions on the nuclear issue.

But in the aftermath of his fraudulent election, Ahmadinejad was a diminished figure without legitimacy and began to alter his perspective. In order to reclaim his standing at home, he sought diplomatic success abroad. And he belatedly appreciated that such an achievement was inconceivable without compromise on Iran's contested nuclear file. Given his forceful and persistent personality, he somehow managed to coax the vacillating Khamenei into accepting the low-enriched uranium arrangement. However, while Ahmadinejad was embarking on his diplomatic adventure, a series of structural changes within the regime militated against his success.

During much of the summer, Iran's Revolutionary Guards and security services were undergoing a significant revision that involved integration of the command structure, expansion of the intelligence apparatus, and much more of a focus on disarming a non-existent "soft revolution.'' As part of these measures, it appears that a new committee was created to oversee national security affairs. Although shrouded in mystery, this committee seems to be operating directly out of Khamenei's office and encompasses the head of the Revolutionary Guards, members of the intelligence community, and the supreme leader's personal staff.

Khamenei formally approved the restructuring of the security organs in early October. It was then that new national security committee paid more attention to the low-enrichment uranium deal and promptly revolted against an arrangement that could retard Iran's nuclear weapons aspirations. It was the opposition from within the system - not the objections of peripheral figures such as Larijani and Rafsanjani - that proved pivotal in scuttling the deal.

Suddenly confronted with counter pressure from an influential circle that he had created and empowered, Khamenei changed his earlier consent. And Ahmadinejad, out on the limb,grudgingly reversed himself and once more reverted to his earlier, strident rhetoric about the nuclear file being closed.

Bottom line: Revolutionary Guards are in consolidation mode and thus not open to negotiations on the apparently sacred subject of the nuclear program. Neither Ahmadinejad nor Khamenei can overrule that, even when it involves a mere committee created by the latter. Some "supreme leader"!