Author: Pablo

Posted on

ACT and National Front to announce merger.

That is about all I can figure after reading this about Louis Crimp, Act’s largest individual donor in the 2011 election. The line about Invercargill is priceless but there are several other gems as well. Mr. Crimp appears to be getting PR advice from Kyle Chapman or Jim Beam, so why keep up the pretense any more and not just announce the merger of the two white rights movements?  Better yet, once John Banks gets the inevitable boot from parliament, perhaps the AKKKT Party can dip into some of that NF talent pool for a replacement.

AKKKT–a political cough in the larger scheme of things, but a full throated sputum of the NZ Right.

Posted on

Whining John.

Late last year a friend of mine who works in the media said to me that the press had turned on John Key over the Teapot Tape affair. Key’s attempt to have the photographer prosecuted, following on his defamatory and/or contemptuous treatment of individual members of the press corps, was seen as the last straw. My friend noted that the press had generally been kind to Mr. Key during his first term and had avoided digging into a veritable trove of scandal and mischief simply because Mr. Key was riding high in the polls and they did not want to get off-side of a popular PM. That, my friend said, changed after the election, and the press would take a more critical stance with regard to Mr. Key and his government.

To my mind that was welcome news, because it seemed to me that Mr. Key had been treated with kid gloves during his first term and I felt that he needed to be pushed a bit on matters of National policy as well the behavior of some of his party entourage.

In the first quarter of 2012 a number of questions have been raised to Mr. Key that appear to support my friend’s prediction. None of these questions are particularly damaging by themselves, but a pattern has emerged in Mr. Key’s responses. Slowly but surely, as each new mini-scandal or crisis was revealed, Mr. Key began to drop his smile and wave optimism and replaced it with a surly, if not seething disdain for his questioners. Although he keeps his nice persona sharp for staged interviews on TV and radio, his guard drops when doing the impromptu stand-up Q&A with the press gallery. This was very evident when he was asked on one such occasion about the No Asset Sales hikoi, where he clearly struggled to reign in his contempt before saying that he did not concern himself with the opinion of 1000 people.

Now it appears he has had enough with the press in general and the NZH (and to a lesser extent the SST) in particular. He complained  to a rightwing talkback microphone jockey that the press was aggressive and sensationalistic and singled out the NZH as scandal-mongering in its treatment of him and his government in order to raise flagging sales of newsprint.

I do  not have any particular affection for the NZH, SST or the NZ MSM in general–in fact, just yesterday the TVNZ evening news borrowed without attribution a phrase I had used in a discussion about drones with Chris Laidlaw the day before(a phrase I did not coin or copyright but which I nevertheless introduced to the NZ discussion of the subject, which just happened to be the subject of the news item in the TVNZ One broadcast). Since such behavior is increasingly the norm in the NZ MSM, the standard of NZ journalistic training and ethics is, in my opinion, in the main less than optimal (needless to say there are some exceptions to the rule). But I find it ludicrous that Mr. Key is upset about the “aggressive” and “antagonistic” nature of the press approach towards him as of late. Shoot, he got the press equivalent of a free pass for the first three years in spite of often equivocal, deceptive or disingenuous answers to anything other than patsy questions. Why should he get upset when the questions begin to develop a harder edge? Does he not think such questioning comes with the job? Does he think that he is entitled to be treated differently than other politicians?

Of course, all politicians complain about their treatment in the media and past NZ prime ministers have not been above attacking the messenger or interrogator. But it seems to me that Mr. Key is being very rich when he complains about his recent treatment in the press. It may not be the solicitous if not supplicant posture of the first term, but the press approach to Mr. Key is also not anywhere close to the hostile negativity and contrariness of press corps in a wide range of democracies (I think of the partisan jousting that goes on in places like Argentina, the Philippines, the US, Spain, Taiwan and Italy, where the relationship between sections of the press corps and government executives is often very strained, if not toxic).

Thus I have come to the conclusion, following on previous posts about Mr. Key’s demeanor and attitude, that he is a pampered whiner with a royal’s sense of entitlement. He simply does not see himself as having to be accountable to a critical press, and as a result complains to the lapdog press that he is being treated unfairly. Not only is his accusation untrue. It is also politically stupid because it now has the media dissecting his complaint in public. If he thought he was going to win sympathy from anything other than his diehard base, he needs to think again.

Whatever calculus he may or may not be employing, I have one thing to say to him: harden up and do your friggin’ job, which includes fronting up to hard questions from time to time. After all, you do not get the big bucks just to smile and wave.

Posted on

Thought for the day: Bank Economists as media expert commentators.

This may sound mean but having bank economists talk about global macro-and political economics on major NZ news outlets is like having pedophiles talking about childcare. Having them speak authoritatively on the “news” skews public perceptions of economic matters towards the preferred constructs of finance capital. Leaving aside the matter of finance capital’s interest in deregulation of capital flows and currency manipulation, using bank economists may be fine when discussing banking take-overs or interest rates in local markets. But there are many other economic interests at play that deserve mention when it comes to issues of political and macro economy and bank economists are ill-suited for a robust discussion of them. To the contrary, their “expert”opinions masquerading as informed commentary in the news media are often poisonous to the integrity of public debate on economic matters.

Is there not a single non-banker economist in NZ who could be used instead? Are all the Economics, Business and Management departments in local universities full of useless PBRF worshippers devoid of real world experience? Are there no economists in research centers, institutes or government agencies who could present a dispassionate and non-vested perspective on the state of global economic play? I find it hard to believe that is the case.

Just saying…

Posted on

Showing The Money versus Making Numbers Work.

That simple phrase “make the numbers work” catches John Key’s approach to the perennial tension between efficiency and transparency in a democracy. To simplify things, it can be said that the more democratic and transparent the policy process, the less efficient it becomes. That is because the more actors are involved in policy decisions, the more likely that additional decisional sites and veto points will be placed in front of policy choices. They key is to find an appropriate balance between efficient policy formulation and implementation and open participatory representation by all potential stakeholders. If forced to choose, democrats err on the side of representation. Authoritarians prefer efficiency.

The corporate world has no objective need for balance. What matters are balance sheets in the black. Firms are structured so that decision-making is hierarchical rathe than horizontal, with decisions flowing from the top rather than as a result of inputs from the bottom or from external parties. Managers rule, workers obey, and shareholders or owners reap profits. Given the sensitivity of any given project, public consultations might be invited and consideration might be given to mitigating factors that impinge on profitability, but the bottom line is that the numbers work in favor of owners, investors and share-holders.

John Key came from (and is likely to go back to) such a world. In fact, with a personal net worth of around $60 million he is a small time member of the “Masters of the Universe:” the network of financial elites (stock brokers, money managers, currency traders, hedge fund administrators and bankers) built up in the 1990s and headquartered in London, New York, Geneva, Hong Kong and Singapore who made the calls on how global liquid assets should be invested. Theirs is a world of numbers, not morality or ethics, and their worth to the network was and is their ability to make the numbers work when constructing investment deals. They answer to themselves and their clients without regard to the public interest because, quite frankly, they are interested in private gain rather than the public good.

With that in mind the self-styled CEO of NZ Inc., John Key, advised himself that changing gambling laws so that SkyCity can have another 500 slot machines in return for building a convention centre on adjacent land at no tax payer expense was a neat deal that was in both the private and public interest (the public presumably being interested in the tax revenues and ancillary benefits that will accrue from having the convention centre up and running, which is a whole different story). By that logic the numbers work.

In order to come to this conclusion, however, NZ’s self-styled CEO had to ignore the counsel of the Auckland City Council, local iwi, problem gambling-related mental health organizations, the Police, traffic authorities, tourism operators and a host of other potential stakeholders (I mention these because the proposed site of the convention centre involves a myriad of urban planning considerations and is only handy to the Casino and not to the Viaduct, Cloud, Winyard Quarter, Ponsoby, Newmarket or other entertainment districts that depend on tourists). When I say “ignore” I mean that he chose not to solicit advice from any of these parties rather than turn his back on advice already given. Mr. Key’s self-advice also told him to order an end to all other tenders once SkyCity got involved, some of which might have contained the input from non-investor interested parties such as those mentioned above. But as a minor Master of the Universe why should he bother with pretenders and outsiders when he could seal the deal with SkyCity for a small change in an industry-specific law? The Hobbit saga taught him that allowing non-investors to have a say could well kill the deal, so this time around he made sure that negotiations were kept quiet.

Clearly Mr. Key is a man who understands numbers and efficiency. But perhaps he spent a bit too much time in Singapore, where public input into policy decision-making is inconsequential to the point that it is not even considered even when it comes to large public works projects (such as the expansion of the MRT train lines currently underway, which have displaced thousands without any input from them and with compensation determined not by market value but by government fiat). In Mr. Key’s world he does not have to waste time and money listening to the blather of a host of obstructionists and self-interested losers (because, after all, he only deals with winners). He is there to crunch the numbers and do the deals. In the pokies-for-convention-centre trade he has done so, efficiently.

No wonder it is rumored that he is tiring of the job. Here he is, cutting deals and helping commercial players make serious money just like in his good old days in the private sector. But now he has to put up with ex-post whingers and other plebians who all want a voice without a full command of the power of numbers. Plus, he is surrounded by career politicians who for the most part could not make a buck even if they won lotto, and the opposition is nothing more than a bunch of special interest namby-pambies who would not get past the lobby of his former corporate headquarters. Why should he stick around and have to listen to their nonsense about addiction, traffic and other social costs?

You have to feel for Mr. Key. Once he was in the stratosphere, unaccountable to anyone but his corporate masters and the private interests that they served. He made money off of money without having to add value or increase production anywhere, and he got rich doing so in part because he made his name in an authoritarian country in which numbers, not people, matter most. Now he has to smile and wave to a bunch of provincial hicks self-absorbed in some weird Antipodean PC navel-gazing where everyone has a say and little gets done.

Then of course there is John Banks, and how he reads the numbers. For Mr. Banks the deal is not about making public and private numbers work. It is about private interests showing him the money in order to advance his political fortunes. Whereas Mr. Key was looking for a way to balance a specific private actor’s desire with a vague public interest (again, assuming that a convention centre adjacent to SkyCity is in the public interest), Mr. Banks was looking for campaign contributions. Presumably there was a quid pro quo involved with at least two known private parties, SkyCity and Kim Dotcom (there are plenty of others who donated “anonymously” to Mr. Banks but let’s focus just on these since they are in the news). What the expectations were for deliverables from Mr. Banks is as of yet unknown, although whatever they were it appears that Mr. Dotcom now feels that he was stiffed on the deal and is exacting his revenge by releasing details of his donations to Mr. Banks’ mayoral 2010 campaign. Whatever it was it was not in the public interest unless one thinks that granting Mr. Dotcom special favors is a collective good.

In the end, what Mr. Key did was not very democratic but it was legal and efficient as far as the tightly defined numbers behind the deal are concerned. Mr. Banks, on the other hand, had no public interest in mind when he solicited funds from Mr. Dotcom and accepted those from SkyCity, even if the latter’s donation was the same as the amount donated to Len Brown at the time (to his credit Mr. Brown reported the donation from SkyCity to his campaign, which mirrored that given to Mr. Banks “anonymously”). SkyCity was just papering both sides of the mayoral aisle with its symmetrical donations to the two leading candidates, and whatever favor was purchased was bound to be equally small given the amounts involved no matter who won the election. But Mr. Dotcom was an individual who papered only one candidate as far as we know, and he did so in excess of the corporate entity known as SkyCity. He was, in other words, trying to purchase individual favor by backing one candidate over another.

That is why there is a difference between the two men. Mr. Key is an authoritarian-minded money man who thinks he knows what is best for the country without regard to the naysayers and whiners, and who makes the numbers work in favor of his preferred vision. Mr. Banks is an egotistical “show me the money” weasel. With the possibility of more revelations about Mr. Banks forthcoming, it could well be the case that the weasel brings down the money man, or at least accelerates his departure from office.

Posted on

Leaving Bamiyan.

It looks like the NZDF will pull out of Afghanistan next year, one year earlier than originally planned. According to the government the situation is so good in Bamiyan Province that responsibility for security has been turned over to local Afghan forces and the NZDF has downscaled its armed patrols as it concentrates on packing up. The Hazaris who populate Bamiyan are said to be happy with what the NZDF has done with the Provincial Reconstruction Team and will assist the UN and other international organizations in continuing the reconstruction work once the NZDF has left the theater. According to the NZDF and National government, the PRT experience in Bamiyan has been exemplary and is a model for such military-led reconstruction efforts in other future theaters.

But there appears to be wrinkle in this happy picture. Five Afghan translators who worked with the NZDF have unexpectedly approached Defense Minister Jonathan Coleman during a press junket to the PRT (which also saw MSM types like Garth Bray along for the photo op dressed nattily in body armor while posing in front of dusty military hardware and encampments). They did so to request political asylum. The translator’s approach was unexpected, which speaks to the NZDF not being aware of their intentions in advance of the Minister’s visit (which left him at loss for an answer since refugee issues are not part of his portfolio–not that such subtleties matter to Afghans). That suggests a failure in communication between the NZDF and the people it relies on to convey its message in Bamiyan, which is problematic because since one would assume that the relationship between the translators and their patrons would be close and trusting. That the translators kept their concerns a secret until the Minister arrived speaks to underlying differences between them and the NZDF command in Bamiyan.

The translators claim that they will be harmed or killed once the NZDF leaves Bamiyan. Eh? What happened to that much vaunted security situation? If the NZDF did such a good job and was well received by the locals, why would these men fear for their lives? More generally, did the NZ government give any thought to the post-withdrawal security concerns of its closest Afghan interlocutors? Did the NZDF command in Bamiyan flag any such concerns to the government? If the security situation for allied locals in Bamiyan is not as good as has been announced, did the NZDF or NZ government mislead the public as to the truth of the situation?

The translators want special consideration rather than wait for the UN refugee-granting process to take its years-long course (by which time, if their fears are true, they might well be dead). In other words, the translators want to jump the queue because of their extenuating circumstances. That puts the NZ government in a difficult position. If it denies their claim and tells them to get in line like everyone else, they might die as a direct and immediate result of their association with NZ troops. If they get favored treatment then it opens the government to accusations that it responds opportunistically and plays loose with the rules for granting political asylum.

The government has already caused itself a problem. Minister Coleman, caught off-guard by the request on what was supposed to be an easy Anzac Day-related “meet and greet” with the troops, said that NZ has a responsibility to the translators because of their service to the NZDF. That opens a can of worms, because if NZ grants the translators refugee status on special grounds, that sets a precedent for anyone else in Afghanistan who worked with the ISAF coalition to make similar claims based upon fears for their post-withdrawal security. Cooks, cleaners, drivers, translators, lovers–the list of people who could claim persecuted status based on their association with ISAF is bound to be long. NZ offering asylum to these men consequently becomes a thorny diplomatic issue not only with its ISAF coalition partners (who face the possibility of being inundated with similar requests), but also with the Afghan National Government that is supposed to be capable of guaranteeing security once ISAF is gone.

Whatever the decision on the translator’s request, the episode has raised more questions about conditions in Bamiyan than the NZDF appears willing to answer. One thing is certain. No matter what the outcome someone is bound to be left in the lurch, and that includes the NZ MSM types who failed to realize the full significance of what they witnessed when the translators were introduced to Mr. Coleman.

 

 

Posted on

Missile Envy (with postscript).

So let’s get this straight: North Korea attempts to launch a ballistic missile capable of carrying a nuclear warhead and the international community goes ballistic, claiming it is a serious provocation that has grave consequences for regional and world peace. The UN condemns the launch and humanitarian assistance is suspended in retaliation for it. The North Koreans, who have twice tried to detonate an underground nuclear device with only partial success, fail yet again with their missile test (the booster misfired three minutes into the test flight and fell harmlessly into the Yellow Sea where it undoubtably is the object of foreign salvage efforts). In doing so they confirm that they are a considerable ways off from posing a nuclear-armed ballistic missile threat to anyone. That does not mean that they are not paranoid, bellicose and dangerous, but if that is the criteria by which states are measured than pretty much anytime the US has a Republican president it should be subject to UN sanctions and international boycotts.

A week after the North Koreans embarrassed themselves with that fizzle launch (the best technical term for the mishap that I have read is “projectile dysfunction”), the Indians did it right. They successful tested a ballistic missile with a range of 5000 kilometers that is designed to carry a nuclear warhead. The range of the missile means that it can strike targets in Europe and Central China. It is, in a phrase, a full-fledged Intercontinental Ballistic Missile (ICBM). The Indians, of course, are already a nuclear capable state, having successfully conducted dozens of tests both above and below ground. Like the North Koreans, India shares a “hot” border with a long-term adversary, Pakistan, that is also nuclear-equipped (the North Koreans are confronted by nuclear-armed US troops as well as South Korean conventional forces). It has fought conventional wars with Pakistan and border skirmishes are fairly common. And yet the international community has remained placidly silent about what is a clear message of aggressive intent on the part of the Indians.

Why the hypocrisy? If the international community is really serious about nuclear non-proliferation its should be condemning ALL ballistic missile testing. If that seems unreasonable given that the boosters can also be used to launch satellites, then it is patently unreasonable to froth about the North Korean test and ignore the Indian one (and the latter was not construed as anything but a military application). The hard truth is that the Non-Proliferation Treaty is a porous joke that is enforced–and I use that word very loosely– selectively against a few pariah states such as Iran and North Korea but not against others. Nor does it do anything to disarm nuclear-capable states. What reductions in nuclear arsenals have occurred have happened as the result of bilateral negotiations rather than within the framework of the NPT.

I am not a fan of the Kim regime in North Korea. I cannot say I am too enthused about Iran acquiring a nuke. But I understand fully why they attempt to do so. Nuclear weapons are designed to be deterrents, and if that fails to be used as a response to aggression by military superior forces or in the face of imminent conventional defeat. Given their circumstances and the balance of forces in with they operate, North Korea and Iran are eminently rational in their pursuit of that deterrent, as is India even if its threat environment is not as dire (after all, ongoing low-level cross-border clashes with Pakistan cannot be considered to be in the same league as having hostile US carrier task forces and large ground-based contingents just off-shore and across the border) .

That makes the hypocrisy of the international community all the more salient. India is no more and no less rational a state actor than Iran or North Korea. It has interests that it seeks to advance via military capability as well as diplomatic and economic means. Iran and North Korea do not have the diplomatic and economic weight of the Indians–far from it–so they emphasize the military aspect of their defenses. That includes rhetorical broadsides that are designed for domestic consumption and to demonstrate resolve to potential adversaries.

I would think that if the international community was serious about stopping the Iranian and North Korean nuclear weapons development programs it would start by moving to enact restrictions on all ballistic missile testing that is not clearly designed for satellite launching purposes. It could also work a bit harder, within the NPT, to reduce extant nuclear arsenals in places like India, Pakistan, Israel and the great powers. Readers will undoubtably think “that is never going to happen,” and they would be right. But is that is the case, then it is unreasonable to expect that Iran and North Korea stop their ambitions with regard to producing an indigenous nuclear deterrent. They may not conform to international standards of behavior as defined (mostly) but the West, but they are eminently justified, on realist-deterrence grounds, to pursue that option.

Interestingly, that champion of nuclear non-proliferation, New Zealand, has been silent about the India ICBM test even though it condemned the North Korean launch. I get the feeling that under the current government NZ righteousness with regard to non-proliferation is inversely proportional to the possibilities of securing or maintaining a trade deal with states engaging in such testing. Thus, with regard to India there is silence. With regard to Iran there are meek pleas for “cooperation” with the IAEA. And with regard to North Korea there is a chorus of boos no doubt in part occasioned by the fact that South Korea enjoys a favored bilateral trade status with NZ whereas North Korea does not.

It is said that diplomacy is the art of disguising hypocrisy and self-interest in moral-ethical appeal. When it comes to the issue of nuclear proliferation, it seems that particular costume has worn threadbare thin even in places like NZ.

PS: And sure enough, true to form, Pakistan responded to the Indian test with one of their own. So there you have it: two nuclear armed states sharing a border that have fought conventional wars with each other and which continue to maintain a simmering territorial dispute that has involved the use of unconventional armed proxies sequentially test multi-stage long range boosters that are clearly designed to carry nuclear warheads. One of the countries is a major source of armed violent extremism and a safe haven to militants of various stripes. The international community remains silent.

Posted on

A Turn to Mean.

As I watched various labour conflicts over the past few months, then took in accounts of greed-mongering of various types (the wheel-clamping rort being the latest), I set to wondering if things have turned mean in NZ. I tend to think so, and believe a lot of it has to do with National’s presence in government as well as the increasing stratification of NZ society–something National’s policies tend to exacerbate. Some of this collusion is obvious, such as changes to labour laws that strip worker’s of collective rights while enhancing employer prerogatives when hiring and firing (under the banner of so-called “flexibility”). Some is less so, such as in the “look the other way” approach to the conditions that led to the Pike River and Rena disasters and the hands-off government reaction to them. But the trend towards meanness began well before National returned to government in 2008 even if it has gotten worse under it.

It strikes me that the syllogism involved goes something like this: increased employment precariousness born of economic recession in climates of market austerity premised on cost-cutting in both the public and private sectors leads to increased anxiety, then desperation amongst the salaried classes as their life opportunities narrow. In the measure that collective means of defense and redress are also pared down and stripped of legal cover, agency takes precedence over principal to the point that individual rank and file interests are sacrificed in favor of continued union bureaucratic presence (however diminished) in those economic sectors that remain at least partially organized. In the measure that workers realize that their agents have adopted the “iron law of oligarchy” where bureaucratic self-interest and survival becomes the primary objective to which rank and file interests must be subordinated, notions of collective solidarity are abandoned in favor of individual self-interest. Since this is the dominant ethos at play in unorganized sectors of the economy and amongst the managerial and financial elites, the move to survivalist alienation becomes endemic (and indeed pandemic, if we include the fact that immigrants are socialized into the culture of meanness, thereby propagating the “disease” beyond its original culture). The original agents of transmission, in any case, would appear to be the market ideologues who have metastasized into the managerial elites of the present day.

When survivalist alienation becomes endemic, cultural, ethnic, religious and other forms of ascriptive categorization are used to justify the “me first” approach to social intercourse. Until then people may just be bitter. But this is the point when things turn mean.

I could be wrong and this has always been the case in NZ. My impressions are formed since 1997, so perhaps what existed before was indeed a land of milk and honey. But it seems to me, beyond the inter-generational inevitability of the trend towards hyper-individualism there lay a number of accelerants that have made things worse in the last ten years.

 

Posted on

Which Way, Huawei? (With postscript).

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).

Posted on

Labour’s new Tui Ad.

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.