Archive for ‘March, 2012’

Which Way, Huawei? (With postscript).

datePosted on 17:25, March 30th, 2012 by Pablo

All internet architecture has the potential for use as a Signals Intelligence Intercept platform (SIGINT). Data mining already occurs at the mid-range of  IT frameworks, such as when Facebook collects personal information on users for consumer research (or more nefarious) purposes. Cell phones have GPS trackers, which requires software. The range of data-mining already at play in the commercial field is extensive. It therefore should come has no surprise that States also have an interest in data-mining, but for military, diplomatic and intelligence purposes.

If mid-level IT platforms such as FB and numerous other private agents can data-mine extensively with or without the consent of those whose personal information is being accessed, then it stands to reason that providing the basic support infrastructure for IT operations gives the provider even more opportunities at such. In a liberal market environment there are standards of conduct and protocols developed to restrict the unfettered access to private information. But what happens when a state capitalist enterprise is the provider of basic IT infrastructure?

In market capitalist systems the state serves the interests of capitalists by framing the legal and governance frameworks so as to encourage competition on an ostensibly level regulatory playing field. In state capitalist systems capitalists serve the interests of the state above and beyond their particular commercial interests. This is seen in European fascism, Latin American national populism, and in Asian developmentalism such as that of Singapore.

Huawei is the product of a state capitalist system. It was founded by and is led by former PRC intelligence officers. Although Huawei claims to be 100 percent employed owned, that is true only because the one-party authoritarian regime than rules China continues to maintain that it is Communist, which means that all employees are owners. Huawei has been designated as one of the seven national economic treasures that are considered to be essential strategic assets for Chinese power projection, and as such are subject to the strategic dictates of the ruling party. All of this is well known, and having independent local Huawei operators fronted by non-Chinese managers cannot disguise that fact, particularly when all of the components and associated hardware are engineered and made in the PRC.

The US and Australia have decided to bar Huawei from providing IT technologies to strategically important sectors of their IT markets. The US specifically excludes Huawei from any defense or security related contracts, and for that reason Symantec decided to sell its interest in Huawei USA. The Australians feel that their National Broadband Network (NBN) is too precious an asset to be opened to Huawei. They say they have their reasons, and that those reasons have to do with national security.

NZ has just signed off on several broadband infrastructure contracts with Huawei. The question is whether those responsible for the decision were aware of the US and Australian position and if so, why they choose to ignore it. The UK and Canada have allowed Huawei civilian IT contracts, which is important because they are part of the Echelon SIGINT and TECHINT network that binds the “5 eyes” parties together (along with the US, Australia and NZ). In the UK Huawei was awarded contracts for civilian IT, but that was followed by the government communications security agency running an extensive and costly forensics accounting of Huawei systems in order to ensure its cyber security, and even then cannot guarantee that the system is safe as far as covert “backdoor” entryways are concerned. This had something to do with the Australian decision.

95 percent of attempted probes into US corporate and security IT systems originate in the PRC. In the PRC all internet access is tightly controlled and monitored. Huawei is a leading provider of the IT systems used in the PRC, to include the firewalls used to censor foreign content and the tracking devices used to monitor internal dissent. Although all of this is circumstantial, this is the non-classified reason why US security agencies have decided that the company serves as a SIGINT front for the PRC. Add to that concerns about Huawei activities in foreign SIGINT gathering, and what you have is a reason to ban it from competing for security related contracts.

Of course, this could all be a corporate driven plot to preserve market share in the face of superior Chinese efficiency. Or, it could be racism. Or it could be part of the Trilateral Commission efforts to extend its world hegemony. I am agnostic on the exact reasons, but whatever they are, I sure do hope that someone in the National government was briefed by the GCSB and/or SIS on what they were. After all, as full intelligence partners with the US and Australia, one would think that these agencies would have received some of the classified details of why the US and OZ have their doubts about Huawei, and that these agencies would have dutifully reported to at least the Minister for Security and Intelligence, John Key, on the nature of these concerns.

Mind you, if the concerns about cyber espionage are true, I do not fault the PRC a bit for doing so. As an emerging great power with global economic interest and no intelligence sharing network such as Echelon on which to rely (unless one thinks that intelligence sharing with North Korea and Burma is a good counterpart to Western intelligence networks), then the PRC must–and I do mean MUST–develop its own human, signal and technical intelligence capabilities in the measure that its global interests grow. That is just the way the game is played in international security affairs.

The major sea lanes of communication between Latin American and Australasian primary good and raw material suppliers and the Chinese mainland pass through the South Pacific. It would therefore be remiss of the PRC not to seek to ensure the security of these vital channels, and one part of doing so is to have a better intelligence “grip” on what goes on in the countries through and in which they are situated. To put it in Brooklyn-ese: they gotta do what they gotta do because no one else is gonna do it for them.

That is why it would be helpful to hear a “please explain” response from Mr. Key on the matter.

Postscript: It turns out that as early as 2008 the concerns of NZ intelligence partners about Huawei were discussed in US embassy cables from Canberra (which were sent to the US embassy in Wellington, among other places). In 2010 the SIS and GCSB informed him that they could not guarantee that the broadband infrastructure would not be compromised if Huawei was awarded the UFB contract. For reasons as of yet unexplained, he choose to ignore the warnings. As it also turns out, India and South Korea have banned Huawei from critical IT infrastructure projects. Thus it seems that concerns about Huawei are not just a Western plot born of anti-Chinese xenophobia and a desire to protect market share for western businesses, but part of a wider conspiracy amongst China-haters of all stripes. Mr Key, however, is not one of those, and his meetings with Huawei executives at the 2010 Shanghai Expo is proof of that. (Note to readers: all of this has been discussed in the NZ mainstream media the past week, and the 2008 embassy cables were published by Wikileaks).

Labour’s new Tui Ad.

datePosted on 18:35, March 25th, 2012 by Pablo

Former Police Minister Annette King says that she and her cabinet colleagues were not informed about Operation 8 until the night before the dawn raids. She says this after stating that the Solicitor General advised the Police at the time to charge those arrested under the Terrorism Suppression Act, only to change his mind after the raids were completed.

Annette King expects us to believe that she, as Police Minister, had no clue about a police operation that was going to invoke the TSA for the first time, not against foreign terrorists but against a collection of well-known domestic dissidents with long histories with the Police. She expects us to believe that Helen Clark, the micromanaging, all-knowing Prime Minister and Minister for Intelligence and Security, had no clue about Operation 8 even though the TSA was used to justify the electronic surveillance of the suspects a year before the raids, that SIS assets were used to that end, and that the raids would be carried out on Tuhoe land as well as in cities (a delicate political issue, to say the least). She expects us to believe that Phil Goff, the Defense Minister, was clueless about the operation even though, as the foremost counter-terrorism unit in the country, the NZSAS could be called into action should the situation warrant (which would require some advance notice). She expects us to believe that the Combined Threat Assessment Group (CTAG) was not involved in the build up to the raids, or if it was, that this inter-agency task force did not inform any senior government minister until the night before the doors were kicked down. She wants us to believe that then-Police Commissioner Howard Broad, well known for his ties to the the Prime Minister, did not utter a word about who was targeted and why until less than 12 hours before the cops rolled.

She would like us to believe that with the possible exception of the PM, no one in the 5th Labour government was aware of Operation 8 until October 14, 2007. This, even though multiple agencies were involved and the lead-up  to the raids was over a year in the making.

Yeah Right.

 

 

The latest Word from Afar column over at Scoop speculates on New Zealand’s seemingly odd silence on the issue of Iran’s nuclear program.

Urewera Terror: epic fail

datePosted on 06:01, March 21st, 2012 by Lew

Whatever your opinion regarding the Urewera Terror raids, you have to admit that the Police and Crown Law have failed.

The so-called “Urewera 4″ were convicted on about half of the least-serious charges brought, and the jury was hung on the more serious charges of participation in an organised criminal group. The defendants may be retried on these latter charges, and they may yet be found guilty. But the paucity of the Police and Crown Law operation is pretty clear regardless.

Let’s put this in context. The Crown sought initially to lay dozens more charges against many more people than the four who eventually stood trial; leave to bring charges under the Terrorism Suppression Act was not granted, and most of the other charges were dropped after the Supreme Court ruled that the evidence upon which they were founded had been illegally obtained. A year of fancy intensive surveillance; an extreme and unprecedented police assault on an unsuspecting community, including violent treatment of old people and children; four and a half years of lawyering comprising the most expensive trial in New Zealand history, held almost as far from the homes of the defendants as is possible; leaks and publicity tactics designed to bring about a de-facto trial-by-media — and the best they convict on is Arms Act offences such as about half the adult male population of rural New Zealand would be guilty of at some time or other? This, we are supposed to believe, is Aotearoa’s finest at work.

Not only did they fail at the nominal objective of securing convictions, they totally failed at the personal, punitive motive of punishing Tāme Iti and shaming him before his people. Iti has been literally the face of Māori activism, at least since Hone Harawira took the institutional path, and it is impossible to see this trial as anything other than utu for his temerity in escaping conviction for previous acts of defiant political theatre, most notably shooting a flag at a Waitangi Tribunal hearing in 2005. By going in loud and heavy, attempting to show them uppity Māoris who was boss, the Crown set themselves an ambitious target: they had to actually show who was boss. By failing to convict him on the serious charges at a canter, they failed. Tāme Iti is now a celebrity. His mythology is greater than his deeds, except inasmuch as resisting such a legal and ideological onslaught with dignity is a significant deed in itself. He has, in the view of a significant minority of the population, been victimised by the system, and that victimisation provides proof of Crown oppression he had previously struggled to demonstrate. For the rest of the population, Iti represents a brown, tattooed bogeyman, an object of fear, and of loathing that ranges from mild to virulent depending on who you talk to. Iti isn’t standing for office, he doesn’t need to be loved by 50%+1; he just needs to engender fervent support among an active minority, and vague feelings of unease in the rest. Notoriety differs from fame only in its polarity. The Police and the Crown have granted Tāme Iti this sort of fame. He should probably thank them for it.

As if the particular and the personal weren’t failures enough, the Crown also failed at the strategic project of redefining “activism” as “extremism”. Despite all the preceding factors weighing in the Crown’s favour, that a heavily-vetted jury was split indicates that they have failed to blur this crucial distinction, and failed to reframe left-wing and Māori activism* as a threat to civilisation, rather than a legitimate expression of dissent in an open society. This suggests that, in spite of years of Police infiltration and surveillance, of decades of stigmatisation and propagandisation of groups from Ngā Tamatoa to Ploughshares to SAFE, in spite of the better part of two centuries of official attempts to elide the gulf between dissent and insurrection, the public doesn’t really buy it. The jury — and, I would suggest, the people of Aotearoa — quite like and value that distinction and although it is been somewhat eroded, there it remains.

For that finding alone, and regardless of the result of any retrial, yesterday was a good day.

L

* Māori and leftist because, let us not forget, the Right Wing Resistance are free to continue with their training camps and their pseudo-secessionist projects, unmolested.

Theater of the Absurd.

datePosted on 08:05, March 14th, 2012 by Pablo

Is there something in the water that trial lawyers drink?

First the prosecution claims that the Urewera Four and their merry band of role-playing wanna-be commandos were in the bush training for urban guerrilla warfare and posed an imminent threat to New Zealand’s peace and tranquility. The defense answers that all the gun play was just a wanaga exercise designed to train people for private security jobs so that they could move off the dole (even though all of the original defendants were well-known Left activists of various stripes, and several had jobs). Then Tame Iti’s lawyer sums up his defense by claiming that Iti is comparable to Nelson Mandela in the historical scheme of things. WTF?

Are these lawyers high? Is there something about the High Court that brings out the hyperbole in barristers? Do they think that juries are idiots? Or do they think that by offering up a mountain of bluster that the jury will not differentiate between smoke and fire? One thing is clear–the lawyers in this case clearly have Ph.D.s in argumentation: they Pile it High and Deep.

The sad fact is that after more than a million tax-payer dollars have been spent on punitively prosecuting some deluded and/or foolish people for acts that are otherwise commonplace in rural New Zealand, acts that happen on a weekly basis, we have been saddled with a four year court process ending in a trial in which both sides make patently absurd claims to bolster their respective cases.

Whatever the outcome of the trial, if this is the state of the art when it comes to criminal prosecutions and defense, then New Zealand is being very poorly served. And having to pay for that poor service is as galling as having the case go to court in the first place.

 

Accumulation versus Distribution.

datePosted on 17:42, March 9th, 2012 by Pablo

The bottom line of any political economy resolves around the question of accumulation versus distribution. Productive activity that generates surpluses (profits) can be accumulated by those who control the means of production (workers or capitalists), or can be distributed throughout the larger community in which production is located. In capitalist system decisions about accumulation and distribution are done by capitalists. Workers organizations fight or bargain for better distribution of profits. Capitalists would prefer to accumulate for their own consumption. Because production is essential for the material standards of everyone, in democracies capitalists and workers negotiate the proper ratio of profits saved to profits distributed. Once distribution has occurred (via wages, benefits and the like) the saved part of profit is re-invested or “taken” by capitalists (owners) for personal use. Both sides adopt minimax negotiating strategies by making maximum claims on the preferred ratio, then settling for a mutually acceptable minimum. By doing so neither wages or profit-taking rise too recklessly or out of proportion to productive gains or inflation, as that would lead to inefficiencies and potential social unrest.

Or so the system is supposed to work. Depending on relative political balances and the specific location of a given productive sector in the capitalist world cycle at any specific moment, workers or capitalists may have structural and political advantages to play in their favor. Workers will attempt to maximize distribution in the form of job security and wage and benefit gains; capitalists will attempt to maximize accumulation by rolling back worker’s redistributive gains.

For the last twenty-five years logics of accumulation and profit-taking have dominated macroeconomic thought. Workers have steadily seen their distributive gains eliminated. As the process has deepened capitalists have pushed not only to reduce the material aspects of the distributive process. Sensing a favorable economic and political environment in places like New Zealand, they are launching attacks on the rights to collectively organize in defense of distributive stakes or goals. Capitalists well understand that for people to have economic rights they must have political rights.  The right to organize collectively is a political right. Reduce that right and previously held economic rights are more easily curtailed or eliminated. The more the concept of economic rights based on distribution is pushed towards a minimalist definition (encapsulated in the saying “you are lucky to have a job”), the more workers will limit their distributive demands in the quest for basic subsistence. The more that they do so the more working class internal competition will further push down the overall wage bill and increase job insecurity. The process of “casualisation” is the result of that trend, with “labor flexibilisation” being the managerial jargon used to describe employment precariousness.

Today in New Zealand the scales are tipped in favor of accumulation over distribution. The political and economic elite (including many in the Labour Party leadership) overtly side with the logics of accumulation argued by capitalists. They accept the reasoning that in the current global economic moment distribution to workers is contrary to future growth. Thus they accept that not only worker’s distributive demands but their political rights must be curtailed in order for economic benefit to occur. Of course, that benefit accrues to capitalists rather than workers, and if the low rates of re-investment in many productive sectors is anything to go by, profit-taking out of accumulated surpluses have been very good for capitalists indeed.

None of this is particularly new or surprising, even if recent labor conflicts had led to commentary about an impending class war in New Zealand, among other places. What is happening today is just the logical conclusion of a process of market-driven accumulation that began in the 1980s and which is reaching deep into the foundations of modern political economies today. The purpose is to forever privilege accumulation over distribution, and to ensure the political conditions in which workers can no longer challenge that logic or have a say in fixing the “equilibrium” ratio of accumulation to distribution.

Such a system has long been noticed and understood by the materialist school of class conflict. It is called the Asiatic Mode of Production, which relies on super-exploitation of human labor for accumulation gains. Given that New Zealand’s original market ideologues borrowed some of their policy prescriptions from the Chicago School of monetarist economics (later conceptually distorted in the word neoliberalism) as widely applied by capitalist authoritarians in the 1970s and 1980s, it seems  that their heirs have borrowed from the Chinese or Singaporean models, which are also heavily reliant on authoritarian political and social controls. This shift in preferred macroeconomic models makes perfect sense when we consider the move, shared by both major parties, to focus NZ’s diplomatic and trade relations on Asia and the Middle East, where democratic “niceties” are in short supply and where capitalists are largely unencumbered by human rights, much less labor rights or worker’s substantive rights to a share of the benefits of production.

The modern Asiatic model is as ruthlessly efficient as its predecessors, but is also based on a downwards redefinition of the concepts of economic and political rights that is generally considered anathema to democratic values (which in the labor market are enshrined in International Labor Organization conventions, now under siege in NZ and elsewhere). It would seem that in this particular market-driven moment, authoritarian capitalist reasoning prevails, accumulation is the sine qua non of macroeconomic policy, and the notion of egalitarianism as the basis for stable social order reflected in a fair ratio of accumulation to distribution has been abandoned in favor of the all-mightly profit-taking “bottom line.”

That is the state of play in New Zealand today.

Servitor Imperialism.

datePosted on 13:48, March 1st, 2012 by Pablo

Although the golden age of imperialism is long past, the early 21st century has seen a resurgence or perhaps a new form of imperialism in the guise of US-led expeditionary wars to “bring democracy” to rogue or failed states. Besides the wars of occupation waged in Iraq and Afghanistan, the not so covert intervention in Libya and ongoing US military activities in places like Somalia, the Sudan, Colombia, the Philippines and Nigeria suggests that far from being an outmoded concept, the notion of neo-imperialist supremacy is alive and well.

A lesser known aspect of imperialism is the role of servitor imperialists. Servitor imperialist were the colonial troops that deployed and fought for their imperial master. The Scots, Welsh, Australians and New Zealanders all played the servitor role for the British Empire, fighting and dying in places like Gallipoli where none of their core national interests were at risk. Unlike mercenaries, these servitor troops fought out of loyalty to the Crown rather than for money. Today the Gurkhas continue to do the same.

Other former great powers such as the French, Spanish and Portuguese also drew troops from their colonies as they attempted to hold on to their global possessions, albeit with mixed success.

In the 20th century the great wars can be seen as existential threats to the way of life of the servitor former colonies and colonial possessions. The Korean conflict and Vietnam war were less so, but the argument was made the global communism was an existential threat to Western capitalist societies and their allies in the developing world. So the servitor troops stumped up in them as well.

Today, it seems that the role of Imperial hegemon is played by the US, but the twist is that its servitor forces are drawn from allied militaries with UN backing and retain relative command autonomy in the field. Australia and New Zealand again are playing their historic role in fighting in conflicts which, if one removes the idea that the conflicts are about eliminating global terrorism, have little to do with their core national interests (and truth be told, while terrorism is a nasty tactic in an unconventional warfare strategy, it poses no existential threat to any but the most fragile of states, so using the threat of global terrorism as an excuse to join foreign conflicts is a bit of a stretch). Here too, the deployment of servitor imperialist troops is done out of allegiance rather than money: Australia and New Zealand perceive that there is an alliance obligation to help the US in its military adventures, one that may or may not be rewarded not so much in kind (as neither OZ and NZ face physical threats to their territorial integrity) but in other areas of bilateral endeavor such as trade or diplomatic negotiations more central to the servitor’s concerns such as climate change or arms control.

In this era the term “imperialism” is fraught. But just because it has become a dirty word in some circles does not mean that it does not exist, or that the practice of playing servitor imperialists to other great powers is not ongoing. What has changed is the guise in which servitor imperialism occurs, with less Imperial ordering and more multinational cover given to the actions of less powerful countries who send troops to fight in the conflicts instigated by their Great Power allies. It as if there is a cultural disposition in some former colonies to want to serve the Master even if there is no longer a colonial leash tying them together.

Thus, for purposes of definition (there is a good body of scholarly literature on the subject), servitor imperialism is a situation where the natives and descendants of subjugated or colonized nations and sub-national political communities pledge fealty and serve in the wars of their Imperial masters even though no core interest of their homeland is at stake or in jeopardy. In the modern servitor neo-imperialist version, former colonies or subjugated nations send their citizens to fight in wars of the new Imperial hegemon when no core interest is at stake. The difference between this syndrome and a proper military alliance is that in the latter there is a common recognized existential threat that militarily binds countries together, whereas the servitor imperialist approach sees benefit in joining non-essential foreign conflicts instigated and prosecuted by neo-imperialist powers for reasons of their own and without regard to the core interests of the servitors. The syndrome is rooted in a cultural disposition to “serve” the master, whether it be old or new. Leninists might say that is playing the role of useful fool in international security affairs, but whatever the case the syndrome appears alive and well in some parts of the world.

I reflect on this because I have noticed a lot of pro-British chicken hawk rhetoric in rightwing NZ blogs about the current tensions with Argentina over the Malvinas/Falklands islands. For those unaware of the issue, in April we will reach the 30th anniversary of the 6 week war between the UK and Argentina over the islands. Although most Argentines have no interest in renewing hostilities and the Argentine military has made no moves to suggest a desire to retake the islands by force, right-wing Nationalists within Argentina have stepped up their bellicose rhetoric. Even thought the Argentine Right fringe is small, it has influence in some political circles, including with the governing Peronist Party. That has forced the government of Cristina Fernandez de Kirchner and some provincial authorities (since Argentina is a federal republic) to attempt to placate that part of the electorate with public and diplomatic complaints about the ongoing UK military presence in the archipelago (since the UK controls the South Georgia islands, also re-taken in the 1982 war). For its part the UK media has jumped on tits own Nationalist bandwagon, seeing such things as the Crown Prince’s search and rescue deployment to the Falklands as a reaffirmation of the glory days of Pax Britannica.

Truth be told, although Argentina was ceded the Malvinas after its independence from Spain in 1810 (as Spain had control of them until then), the British presence extends back to the 1830s when the few Argentine whalers and sealers resident on the islands were forced  off and the territory proclaimed British. British settlers have had a continuous presence since then and their descendants (now into their eighth generation) consider themselves British subjects. Since possession is 9/10th of the law and the “kelpers” as they are called consider themselves to be part of the UK, it is extremely unlikely that the islands will ever be returned to Argentina.

Argentines know this and except for the Right fringe, accept the verdict of history. In fact, the reason for Argentina’s continued diplomatic protestations about the Malvinas/Falklands is that there are vast oil and natural gas deposits in the seabed around the islands, as well as the fisheries in adjacent waters. Now that technology allows for the exploitation of these resources, Argentines want part of that action. Extending Argentine territorial claims out to the islands (600 nautical miles off shore) allows the Federal Government  to negotiate the commercial aspects of these potentially lucrative resource deposits, and for that to occur Argentina needs diplomatic backing for its claims. Needless to say, the UK has no intention of allowing that to happen.

Thus, while the kelpers are clearly disposed to play the role of servitor imperialists for the UK, it is a bit odd to read all the bluster and anti-Argentine rantings coming out of certain NZ rightwing circles. It is as if they retain their servitor attitudes long after the Empire has faded, something that, with a slight change in orientation, the National government appears to hold as well.