Iran, China and the New Silk Road

By Pepe Escobar

Part 1: Iran and Russia, scorpions in a bottle

HONG KONG - Does it make sense to talk about a Beijing-Tehran axis? Apparently no, when one learns that Iran's application to become a full member of the Shanghai Cooperation Organization (SCO) was flatly denied at the 2008 summit in Tajikistan.

Apparently yes, when one sees how the military dictatorship of the mullahtariat in Tehran and the collective leadership in Beijing have dealt with their recent turmoil - the "green revolution" in Tehran and the Uighur riots in Urumqi - reawakening in the West the ghostly mythology of "Asian despotism".

The Iran-China relationship is like a game of Chinese boxes. Amid the turbulence, glorious or terrifying, of their equally millenarian histories, when one sees an Islamic Republic that now reveals itself as a militarized theocracy and a Popular Republic that is in fact a capitalist oligarchy, things are not what they seem to be.

No matter what recently happened in Iran, consolidating the power the Khamenei-Ahmadinejad-IRGC axis, the relationship will continue to develop within the framework of a clash between US hyperpower - declining as it may be - and the aspiring Chinese big power, allied with the re-emergent Russian big power.

On the road
Iran and China are all about the New Silk Road - or routes - in Eurasia. Both are among the most venerable and ancient of (on the road) partners. The first encounter between the Parthian empire and the Han dynasty was in 140 BC, when Zhang Qian was sent to Bactria (in today's Afghanistan) to strike deals with nomad populations. This eventually led to Chinese expansion in Central Asia and interchange with India.

Trading exploded via the fabled Silk Road - silk, porcelain, horses, amber, ivory, incense. As a serial traveler across the Silk Road over the years, I ended up learning on the spot how the Persians controlled the Silk Road by mastering the art of making oases, thus becoming in the process the middlemen between China, India and the West.

Parallel to the land route there was also a naval route - from the Persian Gulf to Canton (today's Guangzhou). And there was of course a religious route - with Persians translating Buddhist texts and with Persian villages in the desert serving as springboards to Chinese pilgrims visiting India. Zoroastrianism - the official religion of the Sassanid empire - was imported to China by Persians at the end of the 6th century, and Manichaeism during the 7th. Diplomacy followed: the son of the last Sassanid emperor - fleeing the Arabs in 670 AD - found refuge in the Tang court. During the Mongol period, Islam spread into China.

Iran has never been colonized. But it was a privileged theater of the original Great Game between the British Empire and Russia in the 19th century and then during the Cold War between the US and the Soviet Union in the 20th. The Islamic Revolution may at first imply Khomeini's official policy of "neither East nor West". In fact, Iran dreams of bridging both.

That brings us to Iran's key, inescapable geopolitical role at the epicenter of Eurasia. The New Silk Road translates into an energy corridor - the Asian Energy Security Grid - in which the Caspian Sea is an essential node, linked to the Persian Gulf, from where oil is to be transported to Asia. And as far as gas is concerned, the name of the game is Pipelineistan - as in the recently agreed Iran-Pakistan (IP) pipeline and the interconnection between Iran and Turkmenistan, whose end result is a direct link between Iran and China.

Then there's the hyper-ambitious, so-called "North-South corridor" - a projected road and rail link between Europe and India, through Russia, Central Asia, Iran and the Persian Gulf. And the ultimate New Silk Road dream - an actual land route between China and the Persian Gulf via Central Asia (Afghanistan, Tajikistan, Uzbekistan).

The width of the circle
As the bastion of Shi'ite faith, encircled by Sunnis, Iran under what is now a de facto theocratic dictatorship still desperately needs to break out from its isolation. Talk about a turbulent environment: Iraq still under US occupation to the west, the ultra-unstable Caucasus in the northwest, fragile Central Asian "stans" in the northeast, basket cases Afghanistan and Pakistan to the east, not to mention the nuclear neighborhood -Israel, Russia, China, Pakistan and India.

Technological advancement for Iran means fully mastering a civilian nuclear program - which contains the added benefit of turning it into a sanctuary via the possibility of building a nuclear device. Officially, Tehran has declared ad infinitum it has no intention of possessing an "un-Islamic" bomb. Beijing understands Tehran's delicate position and supports its right to the peaceful use of nuclear energy. Beijing would have loved to see Tehran adopt the plan proposed by Russia, the US, Western Europe and, of course, China. Carefully evaluating its vital energy and national security interests, the last thing Beijing wants is for Washington to clench its fist again.

What happened to the George W Bush-declared, post-9/11 "global war on terror" (GWOT), now remixed by Obama as "overseas contingency operations" (OCO)? GWOT's key, shadowy aim was for Washington to firmly plant the flag in Central Asia. For those sorry neo-cons, China was the ultimate geopolitical enemy, so nothing was more enticing than to try to sway a batch of Asian countries against China. Easier dreamed of than done.

China's counter-power was to turn the whole game around in Central Asia, with Iran as its key peon. Beijing was quick to grasp that Iran is a matter of national security, in terms of assuring its vast energy needs.

Of course China also needs Russia - for energy and technology. This is arguably more of an alliance of circumstance - for all the ambitious targets embodied by the SCO - than a long-term strategic partnership. Russia, invoking a series of geopolitical reasons, considers its relationship with Iran as exclusive. China says slow down, we're also in the picture. And as Iran remains under pressure at different levels from both the US and Russia, what better "savior" than China?

Enter Pipelineistan. At first sight, Iranian energy and Chinese technology is a match made in heaven. But it's more complicated than that.

Still the victim of US sanctions, Iran has turned to China to modernize itself. Once again, the Bush/Dick Cheney years and the invasion of Iraq sent an unmistakable message to the collective leadership in Beijing. A push to control Iraq oil plus troops in Afghanistan, a stone's throw from the Caspian, added to the Pentagon's self-defined "arc of instability" from the Middle East to Central Asia - this was more than enough to imprint the message: the less dependent China is on US-subjugated Arab Middle East energy, the better.

The Arab Middle East used to account for 50% of China's oil imports. Soon China became the second-largest oil importer from Iran, after Japan. And since fateful 2003, China also has mastered the full cycle of prospection/exploitation/refining - thus Chinese companies are investing heavily in Iran's oil sector, whose refining capacity, for instance, is risible. Without urgent investment, some projections point to Iran possibly cutting off oil exports by 2020. Iran also needs everything else China can provide in areas like transportation systems, telecom, electricity and naval construction.

Iran needs China to develop its gas production in the gigantic north Pars and south Pars fields - which it shares with Qatar - in the Persian Gulf. So no wonder a "stable" Iran had to become a matter of Chinese national security.

Multipolar we go
So why the stalemate at the SCO? As China is always meticulously seeking to improve its global credibility, it had to be considering the pros and cons of admitting Iran, for which the SCO and its slogan of mutual cooperation for the stability of Central Asia, as well as economic and security benefits, are priceless. The SCO fights against Islamic terrorism and "separatism" in general - but now has also developed as an economic body, with a development fund and a multilateral economic council. The whole idea of it is to curb American influence in Central Asia.

Iran has been an observer since 2005. Next year may be crucial. The race is on to beat the clock, before a desperate Israeli strike, and have Iran accepted by the SCO while negotiating some sort of stability pact with the Barack Obama administration. For all this to happen relatively smoothly, Iran needs China - that is, to sell as much oil and gas as China needs below market prices, while accepting Chinese - and Russian - investment in the exploration and production of Caspian oil.

All this while Iran also courts India. Both Iran and India are focused on Central Asia. In Afghanistan, India is financing the construction of a US$250 million road between Zaranj, at the Iranian border, and Delaram - which is in the Afghan ring road linking Kabul, Kandahar, Herat and Mazar-i-Sharif. New Delhi sees in Iran a very important market. India is actively involved in the construction of a deep water port in Chabahar - that would be a twin for the Gwadar port built in southern Balochistan by China, and would be very helpful to landlocked Afghanistan (freeing it from Pakistani interference).

Iran also needs its doors to the north - the Caucasus and Turkey - to channel its energy production towards Europe. It's an uphill struggle. Iran has to fight fierce regional competition in the Caucasus; the US-Turkey alliance framed by the North Atlantic Treaty Organization; the perpetual US-Russian Cold War in the region; and last but not least Russia's own energy policy, which simply does not contemplate sharing the European energy market with Iran.

But energy agreements with Turkey are now part of the picture - after the moderate Islamists of the AKP took power in Ankara in 2002. Now it's not that far-fetched to imagine the possibility of Iran in the near future supplying much-needed gas for the ultra-expensive, US-supported Turkey-to-Austria Nabucco pipeline.

But the fact remains that for both Tehran and Beijing, the American thrust in the "arc of instability" from the Middle East to Central Asia is anathema. They're both anti-US hegemony and US unilateralism, Bush/Cheney style. As emerging powers, they're both pro multipolar. And as they're not Western-style liberal democracies, the empathy is even stronger. Few failed to notice the stark similarities in the degree of repression of the "green revolution" in Tehran and the Uighurs in Xinjiang. For China, a strategic alliance with Iran is above all about Pipelineistan, the Asian Energy Security Grid and the New Silk Road. For China, a peaceful solution to the Iranian nuclear dossier is imperative. This would lead to Iran being fully opened to (eager) European investment. Washington may be reluctant to admit it, but in the New Great Game in Eurasia, the Tehran-Beijing axis spells out the future: multipolarity.

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. His new book, just out, is Obama does Globalistan (Nimble Books, 2009).

Iran and Russia, scorpions in a bottle

By Pepe Escobar
(http://www.atimes.com/atimes/Middle_East/KG25Ak03.html)

HONG KONG - Things get curiouser and curiouser in the Iranian wonderland. Imagine what happened last week during Friday prayers in Tehran, personally conducted by former president Ayatollah Hashemi Rafsanjani, aka "The Shark", Iran's wealthiest man, who made his fortune partly because of Irangate - the 1980s' secret weapons contracts with Israel and the US.

As is well known, Rafsanjani is behind the Mir-Hossein Mousavi-Mohammad Khatami pragmatic conservative faction that lost the most recent battle at the top - rather than a presidential election - to the ultra-hardline faction of Ayatollah Ali Khamenei-Mahmud Ahmadinejad-Iran Revolutionary Guard Corps. During prayers, partisans of the hegemonic faction yelled the usual "Death to America!" - while the pragmatic conservatives came up, for the first time, with "Death to Russia!" and "Death to China!"

Oops. Unlike the United States and Western Europe, both Russia and China almost instantly accepted the contested presidential re-election of Ahmadinejad. Could they then be portrayed as enemies of Iran? Or have pragmatic conservatives not been informed that obsessed-by-Eurasia Zbig Brzezinksi - who has US President Barack Obama's undivided attention - has been preaching since the 1990s that it is essential to break up the Tehran-Moscow-Beijing axis and torpedo the Shanghai Cooperation Organization (SCO)?

On top of it, don't they know that both Russia and China - as well as Iran - are firm proponents of the end of the dollar as global reserve currency to the benefit of a (multipolar) basket of currencies, a common currency of which Russian President Dmitry Medvedev had the gall this month to present a prototype at the Group of Eight (G-8) meeting in Aquila, Italy? By the way, it's a rather neat coin. Minted in Belgium, it sports the faces of the G-8 leaders and also a motto - "Unity in diversity".

"Unity in diversity" is not exactly what the Obama administration has in mind as far as Iran and Russia are concerned - no matter the zillion bytes of lofty rhetoric. Let's start with the energy picture.

Iran is world number two both in terms of proven oil reserves (11.2%) and gas reserves (15.7%), according to the BP Statistical Review of World Energy 2008.

If Iran ever opted towards a more unclenched-fist relationship with Washington, US Big Oil would feast on Iran's Caspian energy wealth. This means that whatever the rhetoric, no US administration will ever want to deal with a hyper-nationalist Iranian regime, such as the current military dictatorship of the mullahtariat.

What really scares Washington - from George W Bush to Obama - is the perspective of a Russia-Iran-Venezuela axis. Together, Iran and Russia hold 17.6% of the world's proven oil reserves. The Persian Gulf petro-monarchies - de facto controlled by Washington - hold 45%. The Moscow-Tehran-Caracas axis controls 25%. If we add Kazakhstan's 3% and Africa's 9.5%, this new axis is more than an effective counter-power to American hegemony over the Arab Middle East. The same thing applies to gas. Adding the "axis" to the Central Asian "stans", we reach 30% of world gas production. As a comparison, the whole Middle East - including Iran - currently produces only 12.1% of the world's needs.

All about Pipelineistan
A nuclear Iran would inevitably turbo-charge the new, emerging multipolar world. Iran and Russia are de facto showing to both China and India that it is not wise to rely on US might subjugating the bulk of oil in the Arab Middle East. All these players are very much aware that Iraq remains occupied, and that Washington's obsession remains the privatization of Iraq's enormous oil wealth.

As Chinese intellectuals are fond of emphasizing, four emerging or re-emerging powers - Russia, China, Iran and India - are strategic and civilizational poles, three of them sanctuaries because they are nuclear powers. A more confident and assertive Iran - mastering the full cycle of nuclear technology - may translate into Iran and Russia increasing their relative weight in Europe and Asia to the distress of Washington, not only in the energy sphere but also as proponents of a multipolar monetary system.

The entente is already on. Since 2008, Iranian officials have stressed that sooner or later Iran and Russia will start trading in rubles. Gazprom is willing to be paid for oil and gas in roubles - and not dollars. And the secretariat of the Organization of Petroleum Exporting Countries (OPEC) has already seen the writing on the wall - admitting for over a year now that OPEC will be trading in euros before 2020.

Not only the "axis" Moscow-Tehran-Caracas, but also Qatar and Norway, for instance, and sooner or later the Gulf Emirates, are ready to break up with the petrodollar. It goes without saying that the end of the petrodollar - which won't happen tomorrow, of course - means the end of the dollar as the world's reserve currency; the end of the world paying for America's massive budget deficits; and the end of an Anglo-American finance stranglehold over the world that has lasted since the second part of the 19th century.

The energy equation between Iran and Russia is much more complex: it configures them as two scorpions in a bottle. Tehran, isolated from the West, lacks foreign investment to upgrade its 1970s-era energy installations. That's why Iran cannot fully profit from exploiting its Caspian energy wealth.

Here it's a matter of Pipelineistan at its peak - since the US, still during the 1990s, decided to hit the Caspian in full force by supporting the Baku-Tblisi-Ceyhan (BTC) oil pipeline and the Baku-Tblisi-Supsa (BTS) gas pipeline.

For Gazprom, Iran is literally a goldmine. In September 2008, the Russian energy giant announced it would explore the huge Azadegan-North oilfield, as well as three others. Russia's Lukoil has increased its prospecting and Tatneft said it would be involved in the north. The George W Bush administration thought it was weakening Russia and isolating Iran in Central Asia. Wrong: it only accelerated their strategic energy cooperation.

Putin power play
In February 1995, Moscow committed to finishing construction of a nuclear reactor at Bushehr. This was a project started by that erstwhile, self-proclaimed "gendarme of the Gulf" for the US - the shah of Iran. The shah engaged KWU from Germany in 1974, but the project was halted by the Islamic Revolution in 1979 and hit hard between 1984 and 1988 by Saddam Hussein's bombs. The Russians finally entered the picture proposing to finish the project for $800 million. By December 2001, Moscow also started to sell missiles to Tehran - a surefire way of making extra money offering protection for strategic assets such as Bushehr.

Bushehr is a source of immense controversy in Iran. It should have been finished by 2000. As Iranian officials see it, the Russians seem never to be interested in wrapping it up. There are technical reasons - such as the Russian reactor being too big to fit inside what KWU had already built - as well as a technology deficit on the part of Iranian nuclear engineers.

But most of all there are geopolitical reasons. Former president Vladimir Putin used Bushehr as a key diplomatic peon in his double chessboard match with the West and the Iranians. It was Putin who launched the idea of enriching uranium for Iran in Russia; talk about a strategic asset in terms of managing a global nuclear crisis. Ahmadinejad - and most of all the Supreme Leader - gave him a flat refusal. The Russian response was even more foot-dragging, and even mild support for more US-sponsored sanctions against Tehran.

Tehran got the message - that Putin was not an unconditional ally. Thus, in August 2006, the Russians landed a new deal for the construction and supervision of two new nuclear plants. This all means that the Iranian nuclear dossier simply cannot be solved without Russia. Simultaneously, by Putin's own framework, it's very clear in Moscow that a possible Israeli strike would make it lose a profitable nuclear client on top of a diplomatic debacle. Medvedev for his part is pursuing the same two-pronged strategy; stressing to Americans and Europeans that Russia does not want nuclear proliferation in the Middle East while stressing to Tehran that it needs Russia more than ever.

Another feature of Moscow's chessboard strategy - never spelled out in public - is to keep the cooperation with Tehran to prevent China from taking over the whole project, but without driving the Americans ballistic at the same time. As long as the Iranian nuclear program is not finished, Russia can always play the wise moderating role between Iran and the West.

Building up a civilian nuclear program in Iran is good business for both Iran and Russia for a number of reasons.

First of all, both are military encircled. Iran is strategically encircled by the US in Turkey, Iraq, Saudi Arabia

, Bahrain, Pakistan and Afghanistan, and by US naval power in the Persian Gulf and the Indian Ocean. Russia has seen the North Atlantic Treaty Organization (NATO) gobbling up the Baltic countries and threatening to "annex" Georgia and Ukraine; NATO is at war in Afghanistan; and the US is still present, one way or another, across Central Asia.

Iran and Russia share the same strategy as far as the Caspian Sea is concerned. They are in fact opposed to the new Caspian states - Kazakhstan, Turkmenistan and Azerbaijan.

Iran and Russia also face the threat of hardcore Sunni Islam. They have a tacit agreement; for instance, Tehran has never done anything to help the Chechens. Then there's the Armenian issue. A de facto Moscow-Tehran-Erevan axis profoundly irks the Americans.

Finally, in this decade, Iran has become the third-largest importer of Russian weapons, after China and India. This includes the anti-missile system Tor M-1, which defends Iran's nuclear installations.

What's your axis?
So thanks to Putin, the Iran-Russia alliance is carefully deployed in three fronts - nuclear, energy and weapons.

Are there cracks in this armor? Certainly.

First, Moscow by all means does not want a weaponized Iranian nuclear program. This spells out "regional destabilization". Then, Central Asia is considered by Moscow as its backyard, so for Iran to be ascendant in the region is quite problematic. As far as the Caspian goes, Iran needs Russia for a satisfactory juridical solution (Is it a sea or a lake? How much of it belongs to each border country?)

On other hand, Iran's new military dictatorship of the mullahtariat will react savagely if it ever had Russia fully against it in the UN Security Council. That would spell a rupture in economic relations - very bad for both sides - but also the possibility of Tehran supporting radical Islam everywhere from the southern Caucasus to Central Asia.

Under these complex circumstances, it's not so far-fetched to imagine a sort of polite Cold War going on between Tehran and Moscow.

From Russia's point of view, it all comes back to the "axis" - which would be in fact Moscow-Tehran-Erevan-New Delhi, a counter-power to the US-supported Ankara-Tblisi-Telaviv-Baku axis. But there's ample debate about it even inside the Russian elite. The old guard, like former prime minister Yevgeny Primakov, thinks that Russia is back as a great power by cultivating its former Arab clients as well as Iran; but then the so-called "Westernizers" are convinced that Iran is more of a liability.

They may have a point. The key of this Moscow-Tehran axis is opportunism - opposition to US hegemonic designs. Is Obama - via his "unclenched fist" policy - wily enough to try to turn this all upside down; or will he be forced by the Israel lobby and the industrial-military complex to finally strike a regime now universally despised all over the West?

Russia - and Iran - are fully committed to a multipolar world. The new military dictatorship of the mullahtariat in Tehran knows it cannot afford to be isolated; its road to the limelight may have to go through Moscow. That explains why Iran is making all sorts of diplomatic efforts to join the SCO.

As much as progressives in the West may support Iranian pragmatic conservatives - who are far from reformists - the crucial fact remains that Iran is a key peon for Russia to manage its relationship with the US and Europe. No matter how nasty the overtones, all evidence points to "stability" at this vital artery in the heart of the New Great Game.

Next: Iran, China and the New Silk Road

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. His new book, just out, is Obama does Globalistan (Nimble Books, 2009).

He may be reached at pepeasia@yahoo.com.

Pipelineistan goes Af-Pak

By Pepe Escobar
(http://www.atimes.com/atimes/Central_Asia/KE14Ag01.html)

As United States President Barack Obama heads into his second 100 days in office, let's head for the big picture ourselves, the ultimate global plot line, the tumultuous rush towards a new, polycentric world order. In its first 100 days, the Obama presidency introduced us to a brand new acronym, OCO - for Overseas Contingency Operations - formerly known as GWOT (as in "global war on terror").

Use either name, or anything else you want, and what you're really talking about is what's happening on the immense energy battlefield that extends from Iran to the Pacific Ocean. It's there that the liquid war for the control of Eurasia takes place.

Yep, it all comes down to black gold and "blue gold" (natural gas), hydrocarbon wealth beyond compare, and so it's time to trek back to that ever-flowing wonderland - Pipelineistan. It's time to dust off the acronyms, especially the SCO or Shanghai Cooperative Organization, the Asian response to NATO, and learn a few new ones like IPI and TAPI. Above all, it's time to check out the most recent moves on the giant chessboard of Eurasia, where Washington wants to be a crucial, if not dominant, player.

We've already seen Pipelineistan wars in Kosovo and Georgia, and we've followed Washington's favorite pipeline, the BTC, which was supposed to tilt the flow of energy westward, sending oil coursing past both Iran and Russia. Things didn't quite turn out that way, but we've got to move on, the New Great Game never stops. Now, it's time to grasp just what the Asian Energy Security Grid is all about, visit a surreal natural gas republic, and understand why that Grid is so deeply implicated in the Af-Pak war.

Every time I've visited Iran, energy analysts stress the total "interdependence of Asia and Persian Gulf geo-ecopolitics". What they mean is the ultimate importance to various great and regional powers of Asian integration via a sprawling mass of energy pipelines that will someday, somehow, link the Persian Gulf, Central Asia, South Asia, Russia and China. The major Iranian card in the Asian integration game is the gigantic South Pars natural gas field (which Iran shares with Qatar). It is estimated to hold at least 9% of the world's proven natural gas reserves.

As much as Washington may live in perpetual denial, Russia and Iran together control roughly 20% of the world's oil reserves and nearly 50% of its gas reserves. Think about that for a moment. It's little wonder that, for the leadership of both countries as well as China's, the idea of Asian integration, of the Grid, is sacrosanct.

If it ever gets built, a major node on that Grid will surely be the prospective US$7.6 billion Iran-Pakistan-India (IPI) pipeline, also known as the "peace pipeline". After years of wrangling, a nearly miraculous agreement for its construction was initialed in 2008. At least in this rare case, both Pakistan and India stood shoulder to shoulder in rejecting relentless pressure from the Bush administration to scotch the deal.

It couldn't be otherwise. Pakistan, after all, is an energy-poor, desperate customer of the Grid. One year ago, in a speech at Beijing's Tsinghua University, then-president Pervez Musharraf did everything but drop to his knees and beg China to dump money into pipelines linking the Persian Gulf and Pakistan with China's far west. If this were to happen, it might help transform Pakistan from a near-failed state into a mighty "energy corridor" to the Middle East. If you think of a pipeline as an umbilical cord, it goes without saying that IPI, far more than any form of US aid (or outright interference), would go the extra mile in stabilizing the Pak half of Obama's Af-Pak theater of operations, and even possibly relieve it of its India obsession.

If Pakistan's fate is in question, Iran's is another matter. Though currently only holding "observer" status in the SCO, sooner or later it will inevitably become a full member and so enjoy NATO-style, an-attack-on-one-of-us-is-an-attack-on-all-of-us protection. Imagine, then, the cataclysmic consequences of an Israeli preemptive strike (backed by Washington or not) on Iran's nuclear facilities. The SCO will tackle this knotty issue at its next summit in June, in Yekaterinburg, Russia.

Iran's relations with both Russia and China are swell - and will remain so no matter who is elected the new Iranian president next month. China desperately needs Iranian oil and gas, has already clinched a $100 billion gas "deal of the century" with the Iranians and has loads of weapons and cheap consumer goods to sell. No less close to Iran, Russia wants to sell them even more weapons, as well as nuclear energy technology.

And then, moving ever eastward on the great Grid, there's Turkmenistan, lodged deep in Central Asia, which, unlike Iran, you may never have heard a thing about. Let's correct that now.

Gurbanguly is the man
Alas, the sun-king of Turkmenistan, the wily, wacky Saparmurat "Turkmenbashi" Nyazov, "the father of all Turkmen" (descendants of a formidable race of nomadic horseback warriors who used to attack Silk Road caravans) is now dead. But far from forgotten.

The Chinese were huge fans of the Turkmenbashi. And the joy was mutual. One key reason the Central Asians love to do business with China is that the Middle Kingdom, unlike both Russia and the United States, carries little modern imperial baggage. And of course, China will never carp about human rights or foment a color-coded revolution of any sort.

The Chinese are already moving to successfully lobby the new Turkmen president, the spectacularly named Gurbanguly Berdymukhamedov, to speed up the construction of the Mother of All Pipelines. This Turkmen-Kazakh-China Pipelineistan corridor from eastern Turkmenistan to China's Guangdong province will be the longest and most expensive pipeline in the world, 7,000 kilometers of steel pipe at a staggering cost of $26 billion. When China signed the agreement to build it in 2007, they made sure to add a clever little geopolitical kicker. The agreement explicitly states that "Chinese interests" will not be "threatened from [Turkmenistan's] territory by third parties”. In translation: no Pentagon bases allowed in that country.

China's deft energy diplomacy game plan in the former Soviet republics of Central Asia is a pure winner. In the case of Turkmenistan, lucrative deals are offered and partnerships with Russia are encouraged to boost Turkmen gas production. There are to be no Russian-Chinese antagonisms, as befits the main partners in the SCO, because the Asian Energy Security Grid story is really and truly about them.

By the way, elsewhere on the Grid, those two countries recently agreed to extend the East Siberian-Pacific Ocean oil pipeline to China by the end of 2010. After all, energy-ravenous China badly needs not just Turkmen gas, but Russia's liquefied natural gas (LNG).

With energy prices low and the global economy melting down, times are sure to be tough for the Kremlin through at least 2010, but this won't derail its push to forge a Central Asian energy club within the SCO. Think of all this as essentially an energy entente cordiale with China. Russian Deputy Industry and Energy Minister Ivan Materov has been among those insistently swearing that this will not someday lead to a "gas OPEC [the Organization of Petroleum Exporting Countries]" within the SCO. It remains to be seen how the Obama national security team decides to counteract the successful Russian strategy of undermining by all possible means a US-promoted East-West Caspian Sea energy corridor, while solidifying a Russian-controlled Pipelineistan stretching from Kazakhstan to Greece that will monopolize the flow of energy to Western Europe.

The real Afghan war
In the ever-shifting New Great Game in Eurasia, a key question - why Afghanistan matters - is simply not part of the discussion in the United States. (Hint: It has nothing to do with the liberation of Afghan women.) In part, this is because the idea that energy and Afghanistan might have anything in common is verboten.

And yet, rest assured, nothing of significance takes place in Eurasia without an energy angle. In the case of Afghanistan, keep in mind that Central and South Asia have been considered by American strategists as crucial places to plant the flag; and once the Soviet Union collapsed, control of the energy-rich former Soviet republics in the region was quickly seen as essential to future US global power. It would be there, as they imagined it, that the US Empire of Bases would intersect crucially with Pipelineistan in a way that would leave both Russia and China on the defensive.

Think of Afghanistan, then, as an overlooked subplot in the ongoing Liquid War. After all, an overarching goal of US foreign policy since president Richard Nixon's era in the early 1970s has been to split Russia and China. The leadership of the SCO has been focused on this since the US Congress passed the Silk Road Strategy Act five days before beginning the bombing of Serbia in March 1999. That act clearly identified American geostrategic interests from the Black Sea to western China with building a mosaic of American protectorates in Central Asia and militarizing the Eurasian energy corridor.

Afghanistan, as it happens, sits conveniently at the crossroads of any new Silk Road linking the Caucasus to western China, and four nuclear powers (China, Russia, Pakistan and India) lurk in the vicinity. "Losing" Afghanistan and its key network of US military bases would, from the Pentagon's point of view, be a disaster, and though it may be a secondary matter in the New Great Game of the moment, it's worth remembering that the country itself is a lot more than the towering mountains of the Hindu Kush and immense deserts: it's believed to be rich in unexplored deposits of natural gas, petroleum, coal, copper, chrome, talc, barites, sulfur, lead, zinc and iron ore, as well as precious and semiprecious stones.

And there's something highly toxic to be added to this already lethal mix: don't forget the narco-dollar angle - the fact that the global heroin cartels that feast on Afghanistan only work with US dollars, not euros. For the SCO, the top security threat in Afghanistan isn't the Taliban, but the drug business. Russia's anti-drug czar Viktor Ivanov routinely blasts the disaster that passes for a US/NATO anti-drug war there, stressing that Afghan heroin now kills 30,000 Russians annually, twice as many as were killed during the decade-long US-supported anti-Soviet Afghan jihad of the 1980s.

And then, of course, there are those competing pipelines that, if ever built, either would or wouldn't exclude Iran and Russia from the action to their south. In April 2008, Turkmenistan, Afghanistan, Pakistan, and India actually signed an agreement to build a long-dreamt-about $7.6 billion (and counting) pipeline, whose acronym TAPI combines the first letters of their names and would also someday deliver natural gas from Turkmenistan to Pakistan and India without the involvement of either Iran or Russia. It would cut right through the heart of Western Afghanistan, in Herat, and head south across lightly populated Nimruz and Helmand provinces, where the Taliban, various Pashtun guerrillas and assorted highway robbers now merrily run rings around US and NATO forces and where - surprise! - the US is now building in Dasht-e-Margo ("the Desert of Death") a new mega-base to host President Obama's surge troops.

TAPI's rival is the already mentioned IPI, also theoretically underway and widely derided by Heritage Foundation types in the US, who regularly launch blasts of angry prose at the nefarious idea of India and Pakistan importing gas from "evil" Iran. Theoretically, TAPI's construction will start in 2010 and the gas would begin flowing by 2015. (Don't hold your breath.) Embattled Afghan President Hamid Karzai, who can hardly secure a few square blocks of central Kabul, even with the help of international forces, nonetheless offered assurances last year that he would not only rid his country of millions of land mines along TAPI's route but somehow get rid of the Taliban in the bargain.

Should there be investors (nursed by Afghan opium dreams) delirious enough to sink their money into such a pipeline - and that's a monumental if - Afghanistan would collect only $160 million a year in transit fees, a mere bagatelle even if it does represent a big chunk of the embattled Karzai's current annual revenue. Count on one thing though, if it ever happened, the Taliban and assorted warlords/highway robbers would be sure to get a cut of the action.

A Clinton-Bush-Obama great game
TAPI's roller-coaster history actually begins in the mid-1990s, the Clinton era, when the Taliban were dined (but not wined) by the California-based energy company Unocal and the Clinton machine. In 1995, Unocal first came up with the pipeline idea, even then a product of Washington's fatal urge to bypass both Iran and Russia. Next, Unocal talked to the Turkmenbashi, then to the Taliban, and so launched a classic New Great Game gambit that has yet to end and without which you can't understand the Afghan war Obama has inherited.

A Taliban delegation, thanks to Unocal, enjoyed Houston's hospitality in early 1997 and then Washington's in December of that year. When it came to energy negotiations, the Taliban's leadership was anything but medieval. They were tough bargainers, also cannily courting the Argentinean private oil company Bridas, which had secured the right to explore and exploit oil reserves in eastern Turkmenistan.

In August 1997, financially unstable Bridas sold 60% of its stock to Amoco, which merged the next year with British Petroleum. A key Amoco consultant happened to be that ubiquitous Eurasian player, former national security advisor Zbigniew Brzezinski, while another such luminary, Henry Kissinger, just happened to be a consultant for Unocal. BP-Amoco, already developing the Baku-Tblisi-Ceyhan (BTC) pipeline, now became the major player in what had already been dubbed the Trans-Afghan Pipeline or TAP. Inevitably, Unocal and BP-Amoco went to war and let the lawyers settle things in a Texas court, where, in October 1998 as the Clinton years drew to an end, BP-Amoco seemed to emerge with the upper hand.

Under newly elected president George W Bush, however, Unocal snuck back into the game and, as early as January 2001, was cozying up to the Taliban yet again, this time supported by a star-studded governmental cast of characters, including undersecretary of state Richard Armitage, himself a former Unocal lobbyist. The Taliban were duly invited back to Washington in March 2001 via Rahmatullah Hashimi, a top aide to "The Shadow," the movement's leader Mullah Omar.

Negotiations eventually broke down because of those pesky transit fees the Taliban demanded. Beware the Empire's fury. At a Group of Eight summit meeting in Genoa in July 2001, Western diplomats indicated that the Bush administration had decided to take the Taliban down before year's end. (Pakistani diplomats in Islamabad would later confirm this to me.) The attacks of September 11, 2001 just slightly accelerated the schedule. Nicknamed "the kebab seller" in Kabul, Hamid Karzai, a former Central Intelligence Agency asset and Unocal representative, who had entertained visiting Taliban members at barbecues in Houston, was soon forced down Afghan throats as the country's new leader.

Among the first fruits of defense secretary Donald Rumsfeld's bombing and invasion of Afghanistan in the fall of 2001 was the signing by Karzai, Pakistani president Musharraf and Turkmenistan's president Saparmyrat Nyazov of an agreement committing themselves to build TAP, formally launching a Pipelineistan extension from Central to South Asia with brand USA stamped all over it.

Russian President Vladimir Putin did nothing - until September 2006, that is, when he delivered his counterpunch with panache. That's when Russian energy behemoth Gazprom agreed to buy Nyazov's natural gas at the 40% mark-up the dictator demanded. In return, the Russians received priceless gifts (and the Bush administration a pricey kick in the face). Nyazov turned over control of Turkmenistan's entire gas surplus to the Russian company through 2009, indicated a preference for letting Russia explore the country's new gas fields and stated that Turkmenistan was bowing out of any US-backed Trans-Caspian pipeline project. (And while he was at it, Putin also cornered much of the gas exports of Kazakhstan and Uzbekistan as well.)

Thus, almost five years later, with occupied Afghanistan in increasingly deadly chaos, TAP seemed dead-on-arrival. The (invisible) star of what would later turn into Obama's "good" war was already a corpse.

But here's the beauty of Pipelineistan: like zombies, dead deals always seem to return and so the game goes on forever.

Just when Russia thought it had Turkmenistan locked in …

A Turkmen bash
They don't call Turkmenistan a "gas republic" for nothing. I've crossed it from the Uzbek border to a Caspian Sea port named - what else - Turkmenbashi where you can purchase one kilo of fresh Beluga for $100 and a camel for $200. That's where the gigantic gas fields are, and it's obvious that most have not been fully explored. When, in October 2008, the British consultancy firm GCA confirmed that the Yolotan-Osman gas fields in southwest Turkmenistan were among the world's four largest, holding up to a staggering 14 trillion cubic meters of natural gas, Turkmenistan promptly grabbed second place in the global gas reserves sweepstakes, way ahead of Iran and only 20% below Russia. With that news, the earth shook seismically across Pipelineistan.

Just before he died in December 2006, the flamboyant Turkmenbashi boasted that his country held enough reserves to export 150 billion cubic meters of gas annually for the next 250 years. Given his notorious megalomania, nobody took him seriously. So in March 2008, our man Gurbanguly ordered a GCA audit to dispel any doubts. After all, in pure Asian Energy Security Grid mode, Turkmenistan had already signed contracts to supply Russia with about 50 billion cubic meters annually, China with 40 billion cubic meters and Iran with eight billion cubic meters.

And yet, none of this turns out to be quite as monumental or settled as it may look. In fact, Turkmenistan and Russia may be playing the energy equivalent of Russian roulette. After all, virtually all of Turkmenistani gas exports flow north through an old, crumbling Soviet system of pipelines, largely built in the 1960s. Add to this a Turkmeni knack for raising the stakes non-stop at a time when Gazprom has little choice but to put up with it: without Turkmen gas, it simply can't export all it needs to Europe, the source of 70% of Gazprom's profits.

Worse yet, according to a Gazprom source quoted in the Russian business daily Kommersant, the stark fact is that the company only thought it controlled all of Turkmenistan's gas exports; the newly discovered gas mega-fields turn out not to be part of the deal. As my Asia Times Online colleague, former ambassador MK Bhadrakumar put the matter, Gazprom's mistake "is proving to be a misconception of Himalayan proportions".

In fact, it's as if the New Great Gamesters had just discovered another Everest. This year, Obama's national security strategists lost no time unleashing a no-holds-barred diplomatic campaign to court Turkmenistan. The goal? To accelerate possible ways for all that new Turkmeni gas to flow through the right pipes, and create quite a different energy map and future. Apart from TAPI, another key objective is to make the prospective $5.8 billion Turkey-to-Austria Nabucco pipeline become viable and thus, of course, trump the Russians. In that way, a key long-term US strategic objective would be fulfilled: Austria, Italy and Greece, as well as the Balkan and various Central European countries, would be at least partially pulled from Gazprom's orbit. (Await my next "postcard" from Pipelineistan for more on this.)

IPI or TAPI?
Gurbanguly is proving an even more riotous player than the Turkmenbashi. A year ago he said he was going to hedge his bets, that he was willing to export the bulk of the eight trillion cubic meters of gas reserves he now claims for his country to virtually anyone. Washington was - and remains - ecstatic. At an international conference last month in Ashgabat ("the city of love"), the Las Vegas of Central Asia, Gurbanguly told a hall packed with Americans, Europeans and Russians that "diversification of energy flows and inclusion of new countries into the geography of export routes can help the global economy gain stability”.

Inevitably, behind closed doors, the TAPI maze came up and TAPI executives once again began discussing pricing and transit fees. Of course, hard as that may be to settle, it's the easy part of the deal. After all, there's that Everest of Afghan security to climb, and someone still has to confirm that Turkmenistan's gas reserves are really as fabulous as claimed.

Imperceptible jiggles in Pipelineistan's tectonic plates can shake half the world. Take, for example, an obscure March report in the Balochistan Times: a little noticed pipeline supplying gas to parts of Sindh province in Pakistan, including Karachi, was blown up. It got next to no media attention, but all across Eurasia and in Washington those analyzing the comparative advantages of TAPI vs IPI had to wonder just how risky it might be for India to buy future Iranian gas via increasingly volatile Balochistan.

And then in early April came another mysterious pipeline explosion, this one in Turkmenistan, compromising exports to Russia. The Turkmenis promptly blamed the Russians (and TAPI advocates cheered), but nothing in Afghanistan itself could have left them cheering very loudly. Right now, Dick Cheney's master plan to get those blue rivers of Turkmeni gas flowing southwards via a future TAPI as part of a US grand strategy for a "Greater Central Asia" lies in tatters.

Still, Brzezinski might disagree, and as he commands Obama's attention, he may try to convince the new president that the world needs a $7.6 billion-plus, 1,600-km steel serpent winding through a horribly dangerous war zone. That's certainly the gist of what Brzezinski said immediately after the 2008 Russia-Georgia war, stressing once again that "the construction of a pipeline from Central Asia via Afghanistan to the south ... will maximally expand world society's access to the Central Asian energy market."

Washington or Beijing?
Still, give credit where it's due. For the time being, our man Gurbanguly may have snatched the leading role in the New Great Game in this part of Eurasia. He's already signed a groundbreaking gas agreement with RWE from Germany and sent the Russians scrambling.

If, one of these days, the Turkmenistani leader opts for TAPI as well, it will open Washington to an ultimate historical irony. After so much death and destruction, Washington would undoubtedly have to sit down once again with - yes - the Taliban! And we'd be back to July 2001 and those pesky pipeline transit fees.

As it stands at the moment, however, Russia still dominates Pipelineistan, ensuring Central Asian gas flows across Russia's network and not through the Trans-Caspian networks privileged by the US and the European Union. This virtually guarantees Russia's crucial geopolitical status as the top gas supplier to Europe and a crucial supplier to Asia as well.

Meanwhile, in "transit corridor" Pakistan, where Predator drones soaring over Pashtun tribal villages monopolize the headlines, the shady New Great Game slouches in under-the-radar mode toward the immense, under-populated southern Pakistani province of Balochistan. The future of the epic IPI vs TAPI battle may hinge on a single, magic word: Gwadar.

Essentially a fishing village, Gwadar is an Arabian Sea port in that province. The port was built by China. In Washington's dream scenario, Gwadar becomes the new Dubai of South Asia. This implies the success of TAPI. For its part, China badly needs Gwadar as a node for yet another long pipeline to be built to western China. And where would the gas flowing in that line come from? Iran, of course.

Whoever "wins," if Gwadar really becomes part of the Liquid War, Pakistan will finally become a key transit corridor for either Iranian gas from the monster South Pars field heading for China, or a great deal of the Caspian gas from Turkmenistan heading Europe-wards. To make the scenario even more locally mouth-watering, Pakistan would then be a pivotal place for both NATO and the SCO (in which it is already an official "observer").

Now that's as classic as the New Great Game in Eurasia can get. There's NATO vs the SCO. With either IPI or TAPI, Turkmenistan wins. With either IPI or TAPI, Russia loses. With either IPI or TAPI, Pakistan wins. With TAPI, Iran loses. With IPI, Afghanistan loses. In the end, however, as in any game of high stakes Pipelineistan poker, it all comes down to the top two global players. Ladies and gentlemen, place your bets: will the winner be Washington or Beijing?



Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. His new book, just out, is Obama does Globalistan (Nimble Books, 2009).

He may be reached at pepeasia@yahoo.com.

(Copyright 2009 Pepe Escobar.)

Al-Qaeda's got a brand new bag

THE ROVING EYE
Al-Qaeda's got a brand new bag
By Pepe Escobar
(View Original)

WASHINGTON - Al-Qaeda is back - with a vengeance of sorts. Listen to Mustafa Abu al-Yazeed - a senior al-Qaeda commander in Afghanistan, in a very rare interview with Pakistan's Geo TV, shot in Khost, in eastern Afghanistan.

"At this stage this is our understanding - that there is no difference between the American people and the American government itself. If we see this through sharia [Islamic] law, American people and the government itself are infidels and are fighting against Islam. We have to rely on suicide attacks which are absolutely correct according to Islamic law. We have adopted this way of war because there is a huge difference between our material resources and our enemy's, and this is the only option to attack our enemy."

The interview is not only about defensive jihad. Yazeed delves into classic al-Qaeda strategy - inciting a cross-border Taliban jihad against the US and North Atlantic Treaty Organization (NATO) forces and blasting a state, in this case the government of Pakistan. According to him, "Sadly, it is the government of Pakistan which has most damaged our cause. President [Pervez] Musharraf violated the trust of Muslims and contributed to the destruction of the Islamic government of Afghanistan ... Musharraf and his government have made big mistakes, there is no such example in other Islamic states."

Yazeed also said al-Qaeda was responsible for the suicide car bombing on the Danish Embassy in Islamabad in early June, when six people were killed.

So why is al-Qaeda feeling so emboldened to have one of its top commanders on camera - and on a foreign TV network to boot, not as-Sahab, al-Qaeda's media arm?

I want my emirate
Jihadis now assess that the new Afghan jihad - against the "infidel" US and NATO troops combined - is more important at the moment than Iraq. So in this sense, Democratic presidential candidate Senator Barack Obama has got it right - Afghanistan, and not Iraq, is "the central front in the war on terror".

But it's much more complicated than that. The central front is actually in Pakistan. Al-Qaeda basically wants a pan-Islamic caliphate. The neo-Taliban, based in Pakistan, are not that ambitious. They already have their Islamic Emirate - it is in the Waziristan tribal areas on the border with Afghanistan. What they want most of all is to expand it. They also know they would never stand a chance of taking over the whole of Pakistan. A Pakistani expert on the tribal areas, currently in Washington, describes it as "a class struggle - almost like an evolving peasant revolution. Baitullah Mehsud [the neo-Pakistani Taliban leader] is but a peasant from a poor family."

What is startling is that the neo-Taliban are now practically in control of North-West Frontier Province on the border with Afghanistan - whose capital is fabled Peshawar. They already control several Peshawar suburbs.

The Pakistani state has virtually no power in these areas. The Taliban enforce strict sharia law. If local security people refuse to obey, they are simply killed. No wonder the neo-Taliban now have subdued scores of middle- and low-ranking Pakistani officials. They even issued a deadline to the new secular and relatively progressive regional government to release all Taliban prisoners - or else. As for the government, the only thing it can do is to organize some sort of neighborhood watch to prevent total Taliban supremacy. This state of affairs also reveals how the Pakistani army seems to be powerless - or unwilling - to fight the Taliban.

Across the border, in Kunar and Nuristan provinces in Afghanistan, the Taliban now control almost all security checkpoints. No wonder Yazeed - speaking for al-Qaeda, envisions a war without borders. He said, in his Geo TV interview, "Yes, we cannot separate the tribal area people from Afghanistan which are part of Pakistan and the Pakistani people. Yes, we are getting support from tribal people in Pakistan, and in fact it is obligatory for them to render this help and it is a responsibility that is imposed by religion. It is not only obligatory for residents of the tribal regions but all of Pakistan."

In a recent high-profile al-Qaeda meeting in Miramshah in North Waziristan, the al-Qaeda leadership made it clear it not only expects - it wants the new Afghan war/jihad to spill over to the tribal areas in Pakistan.

And this is what al-Qaeda will get - according to what Obama told CBS News' Lara Logan, "... what I've said is that if we had actionable intelligence against high-value al-Qaeda targets and the Pakistani government was unwilling to go after those targets, then we should."

The Pentagon for its part is preparing the battlefield - it has already sent Predator drones, repeatedly, over the tribal areas. An air war is in the works - not to mention scores of Pentagon covert special ops.

Al-Qaeda's strategy is to suck in the US military - this is classic Osama bin Laden ideology, according to which the US should be dragged to fight in Muslim lands. Al-Qaeda is reasoning that an attack on the tribal areas, in fact a real third front in the "war on terror" (so dreaded by chairman of the Joint Chiefs of Staff, Admiral Michael Mullen) will have Pakistani public opinion so outraged that the Pakistani army would be powerless to follow the US track. And al-Qaeda, in the end, would be left with an even freer hand.

Obama and Osama
How does that fabled phantom, bin Laden, fit into this strategy? Is he alive or just ... a phantom? Hassan Ibrahim from al-Jazeera television recently told independent journalist Kristina Borjesson "bin Laden is alive. The kidney failure and dialysis machine stories are nonsense, CIA rumors. In 2002 one of his wives was interviewed for a Saudi magazine and she categorically denied the dialysis story. After Tora Bora [in Afghanistan when the US invaded in 2001], his fourth wife asked for a divorce. He took on a new wife in April 2005, with whom he now has a son. Her father is a powerful Saudi businessman from Hejaz who announced in his mosque that his daughter had married bin Laden."

There's also chatter in the jihadi underground related to an ongoing theological debate with direct participation by bin Laden.

Obama for his part still cannot have grasped the full, complex, picture of what is going on the tribal areas - in his current world tour he's only been to Jalalabad, in eastern Afghanistan, and only for a few hours. But he's on a learning curve - although, for the moment, he seems to be playing to the US military establishment galleries, pledging to add 10,000 US combat troops to the Afghan theater of war. Al-Qaeda will be delighted.

What Obama has certainly accomplished for now is a certified three-pointer - turning George W Bush administration and neo-conservative rhetoric about the "war on terror" in Iraq upside down and applying it to Afghanistan. Obama has been emphasizing the "growing consensus at home that we need more resources in Afghanistan".

In his press conference in Jordan, Obama also emphasized his decision to make Afghanistan the first stop on his world tour because it's the "central front in the war on terror," the place "where 9/11 was planned" and where "terrorists" are "plotting new attacks against the United States".

And here's the clincher - straight out of the neo-con playbook, "We have to succeed in taking the fight to the terrorists." But that's not all. Obama's political jiu-jitsu has mixed this hardcore rhetoric with a global, multilateral vision - not to mention forcing Republicans to accept his own take on the "war on terror". As for the tribal areas, he projects the impression he is allowing himself time to fully understand their complexity.

So what's left to self-described national security expert and Republican presidential candidate Senator John McCain? Well, he did manage to tell ABC's Diane Sawyer the new al-Qaeda and Taliban configuration is "a very hard struggle, particularly giving the situation in the Iraq-Pakistan border".

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. He may be reached at pepeasia@yahoo.com.

Why Iraq won't be South Korea

THE ROVING EYE
Why Iraq won't be South Korea
By Pepe Escobar
(View Original)

The United States invasion of Iraq then takes on an even broader meaning. Not only does it constitute an attempt to control the global oil spigot and hence the global economy though domination over the Middle East. It also constitutes a powerful US military bridgehead on the Eurasian land mass which ... yields it a powerful geostrategic position in Eurasia with at least the potentiality to disrupt any consolidation of an Eurasian power that could indeed be the next step in that endless accumulation of political power that must always accompany the equally endless accumulation of capital.
- David Harvey, The New Imperialism, 2003

WASHINGTON - Everyone remembers the George W Bush "Mission Accomplished" victory speech on board of an aircraft carrier off the San Diego coast in the spring of 2003. Over five years - and a trillion dollars - later, Bush's last stand is to force a neo-colonial Status of Forces Agreement (SOFA) under Iraqi throats by the end of July, acquire the right to go on "war on terror" mode in Iraq forever, declare victory and thus win - finally - his war, now opposed by a striking majority of Americans.

Call it "occupation forever". But there's one glitch: Iraqis are not falling for it.

I need your oil so bad
Flash back to September 2001. The neo-conservatives wanted their "new Pearl Harbor" really bad - something they had virtually implored for via the Project for a New American Century. They got it on September 11, 2001. Then the short anti-Taliban war in Afghanistan turned out to be a sort of test drive for Iraq. Echoing astute past observations by Hannah Arendt, US nationalism and imperialism was coupled with racism (towards Arabs and Islam).

And the invasion of Iraq was finally conceptualized as a "demonstration project" - the push to create in the Mesopotamian sands a US-style, wealthy consumer society, a demilitarized client state under benign US protection. Better yet, a 21st century version of the South Korean "tiger" miracle - engineered by US military-technological power.

But it all went way beyond Iraq as a new South Korea. David Harvey, the brilliant Oxford-educated American geographer who proposes, in his own words, long-term geopolitical analysis based on "historical-geographical materialism", wrote in 2003 that the invasion of Iraq offered "a vital strategic bridgehead ... on the Eurasian land mass that just happens to be the center of production of the oil that currently fuels (and will continue to fuel for at least the next 50 years) not only the global economy but also every large military machine that dares to oppose that of the United States."

An empire of military bases and control of oil fields. These two crucial "benchmarks", applied to Iraq, are what's left of that alliance between the neo-cons and the Christian Right which took over the US government with an imperial project of military rule over global oil resources. Now it's twilight time; and no wonder the Bush administration has come out with all guns blazing. Without a new, US Big Oil-friendly Iraqi oil law, and without a SOFA, US$3 trillion - according to Joseph Stiglitz's and Linda Bilmes' book - will have been spent for nothing.

However, on Thursday, the New York Times reported that Exxon Mobil, Shell, Total and BP were in the final stages of negotiations on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization by Saddam Hussein.

They are reportedly in negotiations with the Oil Ministry for no-bid contracts to service Iraq's largest fields. Should the deals go through, they would lay the foundation for the first commercial work for major Western companies in Iraq since the American invasion in 2003. It is expected that Iraq's output could increase to about 3 million barrels a day from its current 2.5 million.

Initially, the Bush administration wanted no less than 58 permanent US bases in Iraq. There are already 30 in place. It doesn't matter that on April 8, US ambassador to Iraq Ryan Crocker had said the US "will not establish permanent bases in Iraq and we anticipate that it will expressly foreswear them".

The Bush administration's ploy essentially amounts to turning over legal control of US bases to a client regime. Heavy pressure is the name of the game. To convince the Iraqis, the Bush administration is holding no less than $50 billion of Iraqi money in the Federal Reserve Bank of New York. Other "subtle" forms of pressure also apply. The Iraqis wanted to sell oil in euros as well as in dollars. The Bush administration issued its fatwa - and it's a "no".

This shady deal the Bush administration wants so badly is a SOFA only in theory. In fact, it's a smokescreen. Under US law, it would have to be submitted to the senate. The Bush administration wants to totally bypass the senate.

And the deal is not about Iraq either. It's essentially about Iran - as in the neo-con 2003 mantra "real men go to Tehran". That's the meaning of the Bush administration demand, according to Iraqi lawmakers, of "the right ... to strike, from within Iraqi territory, any country it considers a threat to its national security."

The Bush administration wants to totally control Iraqi airspace. The Bush administration wants to employ US firepower without approval from the "sovereign" Iraqi government. The Bush administration wants immunity from prosecution in Iraqi courts for all American troops and even dozens of thousands of contractors - most of them Blackwater-style mercenaries. The US Army simply cannot function properly without these privatized warriors.

Were a deal to be reached under the current terms - the deadline remains July 31 - nothing would be easier for the Bush administration than to accuse Iran of interfering in Iraq - as it is already doing non stop - and then attack Iran under the "legal" cover of this SOFA.

The Bush administration also would have a hard time getting the US Congress to explicitly approve an attack on Iran. So why not use the Iraqi Parliament instead? No wonder scores of Iraqi parliamentarians, Sunni and Shi'ite alike, fear the deal is basically a cover to use Iraq as a base to attack Iran. Nuri al-Maliki, Iraq's prime minister, went to Tehran and solemnly promised that Iraq would not be used as a US base for an attack on Iran.

Iran Supreme Leader Ayatollah Ali Khamenei told Maliki that Iraqis have to "think of a solution to free" themselves from US power. Not surprisingly, Khamenei advised Maliki not to sign the deal. Maliki, for his part, reassured the Iranians in no uncertain terms Iraq is not an arena for a deadly US-Iran Armageddon.

Get me to the deal on time
The consensus now in Baghdad seems to be that no deal will be reached before the US presidential election in November. Anyway the Bush administration will not give up without a fierce fight. The State Department's top Iraq adviser, David Satterfield, insists the deal "can be achieved, and by the end of the July deadline".

How? Well, the Bush administration has invested in a little rewriting - they are now on a fourth draft. Some "concessions" have been made in terms of immunity of contractors to Iraqi law. But the deal still has no timetable for a definitive draw down of US troops. And Defense, Interior and National Security ministries, as well as weapons contracts, are still meant to be under US control for 10 years.

Under these circumstances how can you convince people like Iman al-Asadi, a Shi'ite member of the committee on legal affairs in Baghdad? According to her, "what happens to our dignity? What happens to our sovereignty? ... If the US controls the air, the ground and the sea, this means no sovereignty."

Democratic Senator Barack Obama's presidential campaign has demanded that the deal be submitted to the US Congress - and that Iraqis should be told in no uncertain terms that the US does not want permanent bases in Iraq. Republican John McCain's campaign ... has had nothing to say.

In fact, it had. McCain - with a huge help from Bush - attacked Obama because Obama said he would meet with the "evil" Iranian leadership. That's exactly what Bush's man in Baghdad, Maliki, did only a few days ago.

The only man who can stop the deal dead in its tracks is Iraq's Grand Ayatollah Ali al-Sistani. True, he fears that without critical US support the Shi'ite parties in government will be much more fragile. But Sistani also fears the street power of Muqtada al-Sadr - who called the Sadrists to demonstrate every Friday against the deal, until it is scrapped. It's fair to say the majority of Iraqis - the Kurds, Vice President Dick Cheney's "base", are the exception - want to know who they'll be dealing with, Obama or McCain, before they embark on the highly sensitive negotiation of the long-term role of the US in Iraq.

Foreign Minister Hoshyar Zebari, a Kurd, talks like he's a State Department employee: he says the deal will be clinched. Grand Ayatollah Sistani forced Maliki to call for a parliament vote. And Muqtada wants a national referendum - that would be the Bush administration's bete noire.

For days this has been a top political story all over the Middle East - as well as in Western Europe. It has been broken by the London-based, Saudi-owned al-Hayat newspaper and by Patrick Cockburn of the London Independent. What about US public opinion? It's been kept literally in the dark. Corporate media coverage has been virtually invisible. Maybe this is what corporate newsrooms call "mission accomplished" - not to explain to the American public how Iraq cannot possibly become South Korea.

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007) and Red Zone Blues: a snapshot of Baghdad during the surge. He may be reached at pepeasia@yahoo.com.

(Copyright 2008 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)