Tag: China

Droning on at home and abroad

On Thursday, June 11, the Project for the 21st Century hosted The Future of Drones with panelists Erik Lin-Greenberg, former US Air Force Officer and PhD candidate at Columbia University, and Lisa Ellman, Counsel for McKenna Long and Aldridge LLP and member of the firm’s Unmanned Aircraft Systems (UAS) Practice Group and Public Policy and Regulatory Affairs practice. The event was moderated by Ryan Hagemann, Civil Liberties Policy Analyst at the Niskanen Center and adjunct fellow at TechFreedom, specializing in robotics and automation.

Lin-Greenberg clarified the commonly misunderstood concept of drones. These aircraft are otherwise known as remotely piloted aircraft (RPAs) whose pilot undergoes the same training as a pilot flying a manned aircraft. Often, large military aircrews operate a drone, as opposed to one person operating it. Furthermore, drone operations fall under two broad categories—Title 10 missions for military use and Title 50 missions for covert action (not necessarily flown by the military crew).

The use of drones today, however, is moving in a completely uncharted direction. Ellman explained there is a growing field of commercial drone operations in which companies use drones for deliveries, crop dusting, providing internet service and taking aerial photos of properties for sale. Currently, the commercial use of drones is illegal in the US. The only way one can circumvent the law is through special permission from the Federal Aviation Administration (FAA). However, drones for recreational purposes are legal, i.e. the law permits a hobbyist to fly drones in an open air space.

Other countries are ahead of the US in the commercial use of drones, including pizza delivery in England and crop dusting in Japan. The data on the safety of commercial drones is however still scant, which makes policy formulation difficult.  The US has the most complex airspace in the world. Other countries have a lot more free airspace. The FAA must regulate “as if drones might fall from the sky” because its objective is to prevent accidents.

The potential commercial and widespread use of drones also introduces questions on privacy. Companies often want to use drones but don’t want others’ drones to spy on them. The critics’ response to this argument is that other technology, such as satellites and helicopters, can already do what commercial drones will do. This begs the question of whether the US must formulate drone-specific rules or can utilize existing general privacy rules.

Lin-Greenberg noted that drones still do not have the payload of manned aircraft. Nevertheless, drones’ tactical effectiveness in minimizing collateral damage could mean that RPA use will continue to increase. The State Department has also relaxed rules on RPA exports, which will limit the clientele that buys Russian and Chinese drones and will allow the US to leverage more influence on foreign buyers, she suggested.

The future of drones remains uncertain, but in order to sustain progress, it is imperative policymakers maintain pace with technology . Industries should begin moving towards commercial drone use, while safety and privacy issues continue to inform the policymaking process.

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The case against the nuclear deal

I spent lunch listening to a panel of bright people at the Jewish Institute for National Security Affairs discuss the Iran nuclear deal, about which they have posed some good questions. Questions are the right approach to any agreement with ramifications as wide and as important as those of the proposed “framework” agreement.

SAIS colleague Eric Edelman underlined that there is no agreement yet. That is clear from the divergent “fact sheets” emerging (and not) from the P5+1 deliberations with Tehran. Nothing is agreed until it is written down (and I would say signed). Particularly important points that are still unsettled include what will be done to “neutralize” the low enriched uranium (LEU) above 300 kilos that will remain in Iran (rather than being shipped abroad as Eric said Iran had previously agreed), the precise arrangements for IAEA verification, and clarification of Iran’s past military nuclear activities. Extending the Joint Plan of Action  (JPOA)–the temporary agreement under which Iran’s nuclear program is stalled at the moment–would be better than the “framework” agreement.

Congressional approval is vital. Otherwise, Iran will not find the agreement credible, because any subsequent American administration may want to change it. It would be anomalous if the Iranian Majles and the UN Security Council got to vote on the agreement but not the Senate.

Ray Takeyh focused on the Supreme Leader’s speech last week, which was harder line on immediate sanctions relief and other issues than Iran’s hardliners have been, even if it appeared to leave the door open a crack for a more general rapprochement with the US. This raises a difficult question: on whose behalf are the Iranian negotiators negotiating? If Foreign Minister Zarif represents only President Rouhani and not the Supreme Leader, then what validity will an agreement have? There is reason to doubt the cohesion of the Iranian regime. The Supreme Leader’s primary political objective is preservation of the regime’s ideology, which is an ideology of resistance. His successor can be expected to have the same view.

It was left to John Hannah to state the hardline US case against the agreement. At best, it would postpone by 10-15 years an Iran just a screwdriver’s turn away from nuclear weapons, leaving it free at the end of that period to accelerate its enrichment rapidly and turn the screwdriver whenever it wanted. There is no reason to believe Iran will have moderated its stances on the US and regional issues during that time. Sanctions relief will necessarily come much sooner than most Americans will want. The agreement will precipitate a nuclear arms race in a region where confidence in US support has been damaged beyond repair in this Administration.

The alternative to the “framework” agreement is a better agreement, Hannah averred. John Kerry just doesn’t know how to negotiate, using US military power and economic leverage to the maximum. What is needed is a concerted US effort to counter Iran throughout the region, starting in Syria.

But it is also arguable, he said, that a military attack that sets the Iranian nuclear program back by two or three years would be better than anything we can get from the “framework.”

Panel concluded, the retired lawyer sitting next to me asked whether China wouldn’t just leave the sanctions regime and start unrestrained imports from Iran if an agreement is not reached. Well, yes, I agreed, it could and it would (though it would have to buy the oil in a currency other than dollars). That is precisely the point: there is no way the sanctions regime can be kept functioning unless the US demonstrates maximum effort to get an agreement. You may think John Kerry a dufus, but he has taken America’s best shot. And if you want America to bomb Iran’s nuclear program, doing so in response to Iranian violations of an agreement is a far better way than just doing it.

That does not, however, mean that any agreement will do. The questions Eric asks about LEU, verification and military nuclear activities are good ones that need answers. I don’t know how John Hannah knows that the Iranian regime will be just as hardline in 10 or 15 years as it is today, but I am pretty sure it will be hardline and accelerate its nuclear program after bombing. Nor do I know how he knows about the timing of sanctions relief, though I think he has a point on Syria: a stronger stand there against the Assad regime would give the Iranians something to think about. Ray Takeyh’s suggestion that the Iranian regime lacks cohesion is to me a positive sign, not a negative one, though in a quick chat afterwards he suggested it will be temporary, with the Supreme Leader’s hardline winning the day.

 

 

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What’s wrong, and not, with the nuclear deal

I don’t know any honest analysts who don’t credit the “framework” agreement outlined in a White House fact sheet with going further than in restraining Iran’s nuclear program than most expected. It is truly unprecedented in several respects: it would reduce the amount of enriched uranium in Iran, limit the production (and prohibit the reprocessing of) plutonium, and put out of commission most of Iran’s enriching centrifuges for 15 years. It would also provide for intrusive inspections beyond those any other state is obligated to.

But there are still aspects to be questioned. It is at best unclear who has signed up to the items in the fact sheet. The Iranians deny they have, and the French have their differences as well. In light of the controversy following its publication, it is best to regard the White House version as an American wish list, based on the current state of the negotiations. I imagine the American negotiators had some basis for believing the Iranians would sign up to these things, because otherwise the White House has made John Kerry’s job extraordinarily difficult. But it is also fair to say that the fact sheet was intended to fend off calls in Congress for tighter sanctions and Congressional approval of any final deal. We’ll just have to wait and see whether the American negotiators can deliver what they have promised.

The single most glaring weakness in the fact sheet is the failure to make any visible progress on “possible military dimensions” (PMDs). The International Atomic Energy Agency has been asking for explanations of these apparently nuclear-weapons-related activities for years, without making significant progress. The Iranians are stonewalling, presumably because the explanations will suggest that Iran really did have a nuclear weapons program at one time. Proving that it no longer does is difficult. The IAEA questions are the nuclear equivalent of “have you stopped beating your wife? Can you prove it?”

It is difficult and embarrassing to reply, but the answers are important, as no nuclear weapons state has achieved that status in an overt, IAEA-safeguarded program, or by diversion of material from such a program. Clandestine is always the preference. Why would Iran be different? Secrecy is far more difficult if you have admitted cheating once before.

A third shortcoming of the framework agreement outlined in the fact sheet is time frame. The unprecedented constraints would expire, even if verification provisions do not. But this critique doesn’t hold up. Surely it is better to face an Iran that is unconstrained in a decade or more rather than one that is unconstrained right now and could produce the material for a single nuclear weapon within two or three months.

But critics of the framework don’t want to compare the agreement with no agreement. They want to compare it with Prime Minister Netanyahu’s imaginary “better agreement,” which would eliminate Iran’s nuclear infrastructure entirely. I admit it is possible John Kerry and his team could have negotiated a better agreement, but there is no reason to believe that anything like Netanyahu’s dream could come true. Iran has only amped up its nuclear program during the many years in which we insisted on its giving up its nuclear program and imposed sanctions. If the framework agreement fails, I expect them to continue in that direction.

Tightened sanctions are Netanyahu’s answer. What he and his supporters fail to explain is how sanctions can be tightened. Will Russia, China and the Europeans go along? Sanctions brought Tehran to the table because they were multilateral. Any unilateral sanctions move by the US at this point would destroy the negotiations and push the other members of the P5+1 in the direction of ending the existing sanctions, or at least failing to enforce them as fully as has been the case in the recent past.

Domestic critics want President Obama to threaten use of force. But overt threats of force don’t always help at the negotiating table, because they elicit responses in kind. Iran is already doing harm to US interests in the Gulf, Iraq, Yemen, Syria and Lebanon. Even the threat to do more would cause oil prices to rise (to Tehran’s own benefit and to the detriment of the US economy).

Even if the Iranians don’t believe Obama would ever use force, they can be pretty sure his successor (of either political flavor) will be more likely to do so. The US will be far better off if force is triggered some day by Iranian violations of something like the framework agreement, not by a unilateral decision undertaken in desperation as sanctions fray.

 

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Deal or no deal

Everyone is anticipating a nuclear deal with Iran today, or not. Either way it is the big news.

I’d bet 60/40 on a “framework” political commitment that lays out some basic and well-known parameters: limits on enriching and stockpiling uranium, slowing of plutonium production, lifting of sanctions and limits over a decade or more, and International Atomic Energy Agency verification.

I don’t expect much on what I regard as the most critical question: answers to the IAEA questions about “possible military dimensions.” No IAEA-safeguarded nuclear program has ever generated the material used in a nuclear weapons program. All proliferation has been accomplished in secret. Iran has still not clarified some of its past activities, but that issue is treated separately between Tehran and the IAEA, not in the P5+1 talks.

Any agreement is going to be difficult for both the US and Iran. Hardliners abound in both countries. Distrust is the rule, not the exception. President Obama needs to be able to argue credibly that framework agreement will in fact prevent Iran from gaining the material needed to make a nuclear weapon in less than a year, as well as ensure that we will know if a decision to produce nuclear weapons is made. President Rouhani will have to be able to argue credibly that Iran’s basic rights have been respected and sanctions significantly alleviated.

Both Tehran and Washington will need to be able to argue that a deal is better than no deal. Washington’s argument will include the inevitable fraying of the sanctions regime if there is no deal. Tehran’s argument will include the inevitable additional damage to Iran’s economy and the (unmentioned but still important) possibility of domestic instability. Both will want to avoid war, which would be devastating for Iran but also embroil the US in still another Middle Eastern conflict, without setting the Iranian nuclear program back more than a few years.

Within the P5+1 team, China and Russia will weigh heavily towards a deal that is generous to Iran. The UK, France and Germany will be closer to the US position, with France apparently arguing for a tougher stand on sanctions than the US. These other participants will be able to influence the shape of what is proposed, but it will ultimately be up to Iran and the US to accept or reject it.

I won’t be surprised if there are last-minute hitches that extend the negotiations, at least for a few hours. That is common in all international negotiations, not least because officials in capitals–in this case Presidents Obama and Rouhani as well as Supreme Leader Khamenei–will need to give a final green or red light. But it is also true that the temptation to throw in a last demand at midnight is great, since the other side by that time is anticipating a result.

Whatever is decided, or not, today or early tomorrow in Lausanne will need further technical elaboration in the months to come before the end-June deadline for a full agreement. Technical details are important. We can expect further drama in the weeks and months to come.

Iran and the US remain at odds on other Middle East issues, including most notably at the moment Syria and Yemen. Even in Iraq, where both are fighting against the Islamic State, their fundamental interests diverge. Even with a deal, peace is unlikely to break out. But a deal might well prevent things from getting much worse.

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Jewish Christmas

The best part of Dan Drezner’s plaint about Gentiles horning in on Jewish Christmas traditions, like going to the movies and eating in Chinese restaurants, is this from Saturday Night Live:

We’ll be having Indian food. All traditions need occasional updating.

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Ramifications

The United States is to establish diplomatic relations with Cuba. Stronger than expected economic and job growth. American companies repatriating. Russia cancels natural gas pipeline. Pro-Russian separatist push in Ukraine stalls. Iran declares its commitment to reaching a nuclear agreement. Baghdad reaches oil export and revenue agreement with Erbil

Today’s headlines may seem disconnected, but there are two common threads:  oil and money, which themselves are tightly wound together.

Little explanation is needed. The Cuban regime is on its last economic legs. It needs an opening to the US to survive. Its massive subsidies from Venezuela are coming to an end, because Caracas is one of the countries most forcefully hit by the decline in oil prices. The economic upturn in the US, and return of US companies from abroad, is at least partly due to more cash in consumers’ pockets, due to lower prices at the pump, and readier availability of energy resources. Russia’s South Stream pipeline fell victim to the combination of sanctions and lower natural gas prices. Russian support for the separatists in eastern Ukraine is falling short in part because the Russian economy is in an oil-price-induced nose dive, along with the ruble. Iran needs a nuclear agreement more than it did a few months ago in order to get sanctions relief that will help it deal with lower oil prices. Both Erbil and Baghdad needed an agreement, not only because of the ISIS threat but also because of lower oil prices, which pinch their finances as much as ISIS’s.

It would be nice to hear some other good news: reduced Russian and Iranian support for Syria’s President Assad, a pickup in China’s economy, and an end to recession in Europe are all within the realm of the possible. May this icy account of an official Iranian visit to Assad is a harbinger.

There is of course a price to pay for the benefits of lower energy prices. US oil and gas production, which had been climbing rapidly at $100/barrel, will slow down at $50/barrel. Oil company stocks are down. The stock market is jittery. Kim Jong Un, his economic woes relieved, is emboldened and less vulnerable.

The balance for America’s foreign policy is however positive. It is also likely to be long-lasting. American oil and gas production may stop climbing so fast, or even fall, laying the foundation for another price rise in the future. But the new technologies that enable exploitation of “tight” oil and gas are viable at anything above $80/barrel, and likely at prices a bit lower. Nor is the US the only country in which these technologies can be used. China, the UK, Poland and many others also have “tight” oil and gas. Once they start producing it, $80/barrel or so will become a ceiling for oil prices, a level that will require serious fiscal discipline in many oil-producing countries, both friend and foe. Russia, Venezuela and Iran have all been budgeting at $100/barrel or more.

The demand side also has an impact on foreign policy. While supply has been booming in the Western Hemisphere, demand is booming in the East, especially China and India. Middle Eastern oil that used to get shipped to Europe and the US will now go to Asia. That is already true for 50% of the oil coming through the strait of Hormuz. The percentage is headed up to 90% within the next decade. US diplomats are busily reassuring Gulf oil producers that Washington is fully committed to maintaining its close relations with them, but it is hard to believe we are that dumb (or that they are).

Rapidly declining oil imports from the Gulf will eventually make the Americans reevaluate. If and when the Iranian nuclear issue is resolved, Washington will want to renew the effort to move its diplomatic and military attention even more definitively to the East, where its economic and commercial focus already lies. China and India will have to pick up more of the burden for energy security, by holding larger oil stocks (neither keeps the 90 days that International Energy Agency members commit to) and naval patrolling. The US should be welcoming them with open arms into a multilateral effort to protect Hormuz. A few extra burdens of this sort would also encourage New Delhi and Beijing to restrain their oil demand and contribute more to limiting global warming.

The ramifications of lower oil prices are profound. We would do well to start thinking hard about them and acting accordingly.

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