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Argos Media

Contracting Boom Could Fizzle Out - washingtonpost.com - 0 views

  • The recent surge in the Washington area's defense-contracting workforce would begin to ebb under Defense Secretary Robert M. Gates's latest budget proposal as the Pentagon moves to replace legions of private workers with full-time civil servants.
  • The budget would reverse a contracting boom, beginning after the 2001 terrorist attacks, in which the proportion of private contractors grew to 39 percent of the Pentagon's workforce. Gates said he wants to reduce that percentage to a pre-Sept. 11 level of 26 percent.
  • Roughly 7.5 percent of metropolitan Washington's labor force -- about 291,000 jobs -- is tied to Pentagon contracting. Defense analysts and government contracting experts said Gates's move could affect companies such as CACI and SAIC, which do large amounts of government contracting work, offering technical services, administrative support, database outsourcing and contract management.
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  • Local giants Lockheed Martin and General Dynamics also run substantial government-support operations and would see some weapons projects cut, while other programs would receive budget increases.
  • In particular, the proposed budget would sharply reduce the number of contractors who help the Pentagon oversee and manage its vast weapons-buying apparatus following a string of reports chronicling cost overruns and other problems.
  • A CACI executive said the company is waiting for further details before commenting. The Arlington company has 12,300 employees, half of whom are in the D.C. region. Ninety-five percent of its $2.4 billion in revenue last year came from federal contracts for technical services and information technology and contracting oversight for the Army and Navy, as well as such Pentagon offices as the Defense Advanced Research Projects Agency and the Missile Defense Agency.
  • Overall, the budget Gates proposed calls for major cuts to the weapons programs of some of the largest contractors.
  • One of the hardest-hit defense firms was Boeing. The Chicago company's $150 billion Future Combat Systems, a family of Army vehicles linked by high-tech communications, came under criticism from Gates for being costly and plagued by development problems. He proposed canceling the $87 billion vehicle part of the system -- a move that would hurt Boeing, SAIC and their subcontractors, BAE and General Dynamics.
  • Gates also proposed canceling some of Boeing's missile defense programs, including one to equip a modified 747 aircraft with a laser that can shoot down missiles soon after they're launched, saying the program "has significant affordability and technology problems and the program's proposed operational role is highly questionable."
  • Boeing would also be hurt because it makes one-third of the F-22 fighter jet and the Pentagon plans to stop ordering additional aircraft. Gates would also cancel the Air Force's program to build a new search-and-rescue helicopter, which had been awarded to Boeing. And it would not order more of Boeing's C-17 cargo planes. Boeing could also see a military satellite program, known as TSAT, end.
  • Lockheed Martin, of Bethesda, the biggest defense contractor in the world, also took hits on several of its major programs.
  • Gates said he would kill the company's bid to build the presidential helicopter, known as the VH-71, citing the fact that the program is six years late and has gone from initial estimates of $6 billion to $13 billion.
  • Lockheed was also hit by the move to not order more F-22 fighter jets. Perhaps hoping for support in Congress, the company has taken out newspaper ads explaining how its F-22 supports roughly 25,000 jobs around the country.
  • But the Pentagon proposed ordering more of Lockheed's F-35 known as the Joint Strike Fighter, and it would increase from two to three the number of littoral combat ships being built by Lockheed and General Dynamics to patrol near enemy coastlines.
Pedro Gonçalves

Report: Russian official confirms Syria jet deal - Israel News, Ynetnews - 0 views

  • A top Russian official confirmed the existence of a contract for the supply of MiG-31 fighter jets to Syria but said work on the planes had been frozen, the daily Kommersant reported on Thursday.  "A few years ago, two contracts were signed: one for (the supply to Syria of) MiG-29s and one for MiG-31s," the head of Russia's United Aircraft Corporation, Alexei Fedorov, told the paper.  "Consultations on this contract are now ongoing, so its future is unclear."
  • A top Russian official confirmed the existence of a contract for the supply of MiG-31 fighter jets to Syria but said work on the planes had been frozen, the daily Kommersant reported on Thursday.  "A few years ago, two contracts were signed: one for (the supply to Syria of) MiG-29s and one for MiG-31s," the head of Russia's United Aircraft Corporation, Alexei Fedorov, told the paper.  
  • The 400-500 million-dollar (280-350 million-euro) contract for the delivery of eight MiG-31s fighter jets was inked in early 2007, according to Kommersant.  It cited sources close to the arms exporter in May saying the supplies of the planes had been frozen under pressure from Israel over fears the weapon sales could offset the balance of power in the region.  According to a a government official cited by Kommersant, the contract had been suspended after Damascus could no longer afford the planes.
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  • In 2005, Moscow forgave 70 percent of Syria's total debt of 13.4 billion dollars.
Pedro Gonçalves

Report: Russia to supply Syria with powerful MiG fighter jets - Haaretz - Israel News - 0 views

  • A Russian newspaper is reporting that Russia has a contract to provide Syria with powerful MiG fighter jets but has not begun delivering the planes. Kommersant cited the head of Russia's state-run United Aircraft Corporation, Alexei Fyodorov, as saying a 2007 contract to sell MiG-31E interceptor fighters to Syria has not entered into force. The paper said Russian arms sales officials have denied such a contract exists.
  • Kommersant cited Fyodorov as saying a contract to provide Syria with Mig-29M fighters is being implemented.
  • State arms sales company Rosoboronexport declined to comment on the report.
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  • In 2007, Russia agreed to supply Syria with eight MiG-31 fighters, known in the West by NATO codename Foxhound, for about $400-$500 million, the paper said. Kommersant, a commerce-oriented newspaper published in Russia, quoted an unidentified person close to Russia's state arms exporter as saying that Moscow had halted the contract due to pressure from Israel.
Argos Media

BBC NEWS | Business | European economy 'will shrink 4%' - 0 views

  • The eurozone and EU economies will contract by 4% this year, the European Commission has forecast, in a massive revision from its earlier prediction. The worsening of the global financial crisis, dropping levels of world trade and continuing house value falls had prompted the downgrade, it said.
  • Europe's economy would not start recovering until the second half of next year, the commission added. It also predicted unemployment in the eurozone would rise to 11.5% in 2010. The figure would reach 10.9% in the 27-nation EU next year, it said.
  • The commission's forecast is not as bleak as the outlook from the International Monetary Fund (IMF) - which says eurozone GDP will fall by 4.2%. However it is less optimistic than the European Central Bank which forecast a 3.8% contraction in its latest estimate.
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  • The commission expects inflation to fall well below the European Central Bank's target of 2%. It projects inflation to slow to 0.4% this year from 3.3% in 2008, and to rise to only 1.2% in 2010.
  • Germany, Europe's biggest economy, is expected to contract 5.4% this year, while the UK and Italy are expected to shrink by between 4% and 4.5%. However the once-booming Irish economy will see a 9% drop and Latvia will shrink by 13.1%, the commission said.
Alex Jhon

Separation Agreements - 0 views

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Alex Jhon

Christmas Loan New Zealand - 1 views

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Pedro Gonçalves

U.S. seals $3.48 billion weapons deal with United Arab Emirates - Haaretz Daily Newspap... - 0 views

  • The deal includes 96 missiles, along with supporting technology and training support
  • The deal includes a contract with Lockheed Martin to produce the highly sophisticated Terminal High Altitude Area Defense, or THAAD, weapon system for the U.A.E.
  • it was the first foreign military sale of the THAAD system.
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  • Wary of Iran, the U.S.has been building up missile defenses of its allies, including a $1.7 billion deal to upgrade Saudi Arabia's Patriot missiles and the sale of 209 Patriot missiles to Kuwait, valued at about $900 million. On Thursday, the Obama administration announced the sale of $30 billion worth of F-15SA fighter jets to Saudi Arabia.
  • Under the fighter jet agreement, the U.S.will send Saudi Arabia 84 new fighter jets and upgrades for 70 more.
  • All the sales are part of a larger U.S.effort to realign its defense policies in the Persian Gulf to keep Iran in check.
Pedro Gonçalves

Iran threatens U.S. Navy as sanctions hit economy | Reuters - 0 views

  • Army chief Ataollah Salehi said the United States had moved an aircraft carrier out of the Gulf because of Iran's naval exercises, and Iran would take action if the ship returned."Iran will not repeat its warning ... the enemy's carrier has been moved to the Sea of Oman because of our drill. I recommend and emphasise to the American carrier not to return to the Persian Gulf....we are not in the habit of warning more than once," he said.
  • After years of measures that had little impact, the new sanctions are the first that could have a serious effect on Iran's oil trade, which is 60 percent of its economy.Sanctions signed into law by U.S. President Barack Obama on New Year's Eve would cut financial institutions that work with Iran's central bank off from the U.S. financial system, blocking the main path for Iran to receive payments for its crude.
  • The EU is expected to impose new sanctions by the end of this month, possibly including a ban on oil imports and a freeze of central bank assets.
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  • Even Iran's top trading partner China - which has refused to back new global sanctions against Iran - is demanding discounts to buy Iranian oil as Tehran's options narrow. Beijing has cut its imports of Iranian crude by more than half for January.
  • Experts still say they do not expect Tehran to charge headlong into an act of war - the U.S. Navy is overwhelmingly more powerful than Iran's sea forces - but Iran is running out of diplomatic room to avert a confrontation.
  • "I think we should be very worried because the diplomacy that should accompany this rise in tension seems to be lacking on both sides," said Richard Dalton, former British ambassador to Iran and now an associate fellow at Chatham House think tank.
  • "I don't believe either side wants a war to start. I think the Iranians will be aware that if they block the Strait or attack a U.S. ship, they will be the losers. Nor do I think that the U.S. wants to use its military might other than as a means of pressure. However, in a state of heightened emotion on both sides, we are in a dangerous situation."
  • The new U.S. sanctions law, if implemented fully, would make it impossible for many refineries to pay Iran for crude. It takes effect gradually and lets Obama grant waivers to prevent an oil price shock, so its precise impact is hard to gauge.
  • The European Union is expected to consider new measures by the end of this month. The sanctions would halt purchase of Iranian oil by EU members such as crisis-hit Greece, which has relied on easy financing terms offered by Tehran to buy crude.
  • Although China, India and other countries are unlikely to sign up to any oil embargo, tighter Western sanctions mean such customers will be able to insist on deeper discounts for Iranian oil, reducing Tehran's income.
  • Beijing has already been driving a hard bargain. China, which bought 11 percent of its oil from Iran during the first 11 months of last year, has cut its January purchase by about 285,000 barrels per day, more than half of the close to 550,000 bpd that it bought through a 2011 contract.The impact of falling government income from oil sales can be felt on the streets in Iran in soaring prices for state subsidised goods and a collapse of the rial currency.
  • "The rate is changing every second ... We are not taking in any rials to change to dollars or any other foreign currency," said Hamid Bakshi at an exchange office in central Tehran.
  • The economic impact is being felt ahead of a nationwide parliamentary election on March 2, the first vote since a disputed 2009 presidential election that brought tens of thousands of Iranian demonstrators into the streets.
  • In a sign of political tension among Iran's elite, a court jailed the daughter of powerful former President Akbar Hashemi Rafsanjani on Tuesday for "anti-state propaganda."Rafsanjani sided with reformists during the 2009 protests. Daughter Faezeh Hashemi Rafsanjani went on trial last month on charges of "campaigning against the Islamic establishment."
Pedro Gonçalves

EU meeting on Iran oil embargo set for January 23 | Reuters - 0 views

  • Diplomats say the embargo could take several months to start because some EU capitals want a delay to reduce any shocks to their already sluggish economies.EU countries have proposed "grace periods" on existing contracts of between one month and 12 months to allow them to find alternative suppliers before implementing an embargo.Greece, which depends heavily on Iranian crude, is pushing for the longest delay, the diplomats said. Britain, France, the Netherlands and Germany wanted a maximum grace period of three months.
  • Iran is the second largest producer of oil, after Saudi Arabia, among the 12 countries in OPEC, producing around 3.5 million barrels per day.EU countries buy nearly 600,000 barrels per day (bpd) of Iran's 2.6 million bpd in exports, making the bloc collectively the largest market for Iranian crude, rivalling China.The three biggest EU importers have serious debt problems. Greece imports a quarter of its oil from Iran, Italy about 13 percent and Spain nearly 10 percent.
Alex Jhon

Marriage Documents - 0 views

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Argos Media

BBC NEWS | Business | World Bank lowers China forecast - 0 views

  • The World Bank has cut its prediction for China's economic growth in 2009 to 6.5% from 7.5%, saying it could not "escape the impact of global weakness". Falling demand for Chinese goods abroad - which the bank said could cost up to 25 million jobs - is the main reason for the projected slowdown. The growth forecast is well below the minimum of 8% that many analysts argue is required to keep China stable. Beijing has spoken of a threat of social unrest if the economy stalls.
  • Mr Kuijs described the outlook for exports this year as "grim" and "sombre". But he said weakening the currency in the short term would not help to revive exports, because global demand was so weak, and the move would slow China's switch to consumption-led growth.
  • China's communist rulers have said they are prepared to offer more stimulus spending in order to achieve the 8% growth target. But the bank said this may not be the right approach and the government should nurture reserves in case growth falls further.
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  • The drop in trade will hurt investment and job creation, the bank said. It expects between 16 million and 17 million non-farm jobs to disappear this year, but said the key to avoiding instability was an effective social welfare system.
  • According to the latest World Bank global forecasts, published in December, the world economy is set to expand at a weak annual rate of 0.9% in 2009, with a 0.1% contraction in developed economies offset by growth in developing countries of 4.5%. A Chinese government think tank this month forecast first-quarter growth would slow to 6.5%, from a 6.8% pace in the fourth quarter last year.
Argos Media

BBC NEWS | Americas | Russia-Venezuela nuclear accord - 0 views

  • Russia and Venezuela have signed an agreement to promote the development of nuclear energy for civilian use. The agreement was signed during a visit by Russian President Dmitry Medvedev to Venezuela's capital, Caracas, on the latest leg of his Latin American tour. Under the accord, Russia would help Venezuela build a nuclear energy plant. Joint gas projects were also approved.
  • Russian and Venezuelan warships are scheduled to hold joint military exercises later this week. The Russian vessels, including the flagship missile cruiser Peter the Great and two support vessels, appeared off La Guaira, near Caracas, early on Tuesday. The destroyer Admiral Chabanenko docked while Venezuelan forces fired a 21-gun salute. This is first Russian deployment of its kind in the Caribbean since the end of the Cold War.
  • Russia is already a major arms supplier to Venezuela, with contracts worth some $4.4bn (£2.39bn).
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  • Boosting bilateral trade between Russia and Latin America, which could reach $15bn (£9.9bn) this year, is another priority for the Russian president during his talks.
Pedro Gonçalves

France24 - Sarkozy urges international finance for nuclear energy - 0 views

  • France urged international financial bodies to fund a new era of global nuclear power on Monday and pitched its own reactor technology as the model to follow.     Welcoming delegates from 60 energy-hungry nations to a conference in Paris, President Nicolas Sarkozy said civil nuclear power had been unfairly passed over for World Bank development loans.    
  • He called on world and regional financial bodies to finance new nuclear projects in developing countries, and announced that France would set up an international institute to promote atomic technology.     "I can't understand why nuclear power is ostracised by international finance, it's the stuff of scandal," he said, urging the World Bank, the European Bank for Reconstruction and Development and others to do more.
  • "I have decided to change up a gear by creating an International Institute of Nuclear Energy that will include an international nuclear school," he said.     He said the French school would become the heart of an international network of institutes, beginning with a centre in Jordan.     "Other centres of nuclear training will be developed with French support, such as the Franco-Chinese nuclear energy institute, in cooperation with the University of Guangzhou," he said.     France has the world's second largest nuclear sector and generates a greater proportion its own electricity through nuclear power than any other economy -- around 75 percent of its needs.     It has also made the export of nuclear technology an economic priority.
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  • French engineering giants Areva and EDF are promoting the European Pressurised Reactor (EPR), a third-generation reactor design that France considers the most advanced in the world.     But the French firms recently lost out on a 20 billion dollar (14 billion euro) contract to supply four reactors to the United Arab Emirates after South Korean firm Kepco came in with a lower offer.     "Today, the market only ranks designs on the basis of price," Sarkozy complained, calling on the United Nations' International Atomic Energy Agency to establish a classification system to rate reactor safety.
Pedro Gonçalves

Netanyahu to lobby in Russia for Iran sanctions | World | Reuters - 0 views

  • Israeli Prime Minister Benjamin Netanyahu will push for "crippling sanctions" against Iran over its nuclear programme in Moscow on Monday with Russian President Dmitry Medvedev.
  • Israel, seeing a mortal threat, has hinted it could attack Iran's nuclear facilities pre-emptively if it deems international diplomacy a dead end. That possibility drew cautionary words from Admiral Mike Mullen, chairman of the U.S. Joint Chiefs of Staff. "I worry a great deal about the unintended consequences of a strike," he told reporters during a visit to Tel Aviv, referring to Iran's threats to retaliate against Israel and U.S. sites in the Gulf. "I think the Iranians are very difficult to predict."
  • Asked what Netanyahu meant by "crippling sanctions," an aide said: "Sanctions that target Iran's refined petroleum imports." While it is the world's fifth-largest oil exporter, Iran lacks domestic refineries and imports some 40 percent of its gasoline.
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  • For now, officials involved in the six-power negotiations expect new sanctions to stop short of hitting energy assets. Proposed sanctions include blacklisting Iran's central bank and other big banks, adding more Iranian individuals to a travel ban list, expanding an asset freeze to include more Iranian companies and imposing an arms imports ban.
  • Netanyahu last visited Russia in September on a secret one-day trip that was leaked to the media. Israeli reports said he had flown to Moscow to voice concern over the possible sale of Russian S-300 anti-aircraft missiles to Iran. The S-300 could hamper any air strikes by Israel, which is assumed to have the region's only atomic arsenal.
  • "There is a signed contract (to supply S-300 missiles) which we must implement, but deliveries have not started yet," Vladimir Nazarov, deputy secretary of Russia's Security Council secretary, told Interfax news agency in an interview.
  • Russia is interested in expanding its fleet of Israeli-made spy drones, having seen neighbouring Georgia use them against Russian forces in a 2008 war.
Pedro Gonçalves

U.S. Is Still Using Private Spy Ring, Despite Doubts - NYTimes.com - 0 views

  • Top military officials have continued to rely on a secret network of private spies who have produced hundreds of reports from deep inside Afghanistan and Pakistan, according to American officials and businessmen, despite concerns among some in the military about the legality of the operation.
  • Earlier this year, government officials admitted that the military had sent a group of former Central Intelligence Agency officers and retired Special Operations troops into the region to collect information — some of which was used to track and kill people suspected of being militants. Many portrayed it as a rogue operation that had been hastily shut down once an investigation began.
  • But interviews with more than a dozen current and former government officials and businessmen, and an examination of government documents, tell a different a story. Not only are the networks still operating, their detailed reports on subjects like the workings of the Taliban leadership in Pakistan and the movements of enemy fighters in southern Afghanistan are also submitted almost daily to top commanders and have become an important source of intelligence.
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  • The American military is largely prohibited from operating inside Pakistan. And under Pentagon rules, the army is not allowed to hire contractors for spying.
  • Military officials said that when Gen. David H. Petraeus, the top commander in the region, signed off on the operation in January 2009, there were prohibitions against intelligence gathering, including hiring agents to provide information about enemy positions in Pakistan. The contractors were supposed to provide only broad information about the political and tribal dynamics in the region, and information that could be used for “force protection,” they said.
  • Some Pentagon officials said that over time the operation appeared to morph into traditional spying activities. And they pointed out that the supervisor who set up the contractor network, Michael D. Furlong, was now under investigation.
  • But a review of the program by The New York Times found that Mr. Furlong’s operatives were still providing information using the same intelligence gathering methods as before. The contractors were still being paid under a $22 million contract, the review shows, managed by Lockheed Martin and supervised by the Pentagon office in charge of special operations policy.
Argos Media

BBC NEWS | UK | UK Politics | Cabinet expenses under scrutiny - 0 views

  • a claim for £6,500 made by Gordon Brown to pay his brother for a cleaner for his Westminster flat. Minister Hazel Blears claimed for three homes in one year and spent nearly £5,000 on furniture in three months.
  • Meanwhile Downing Street has released a copy of the contract for cleaning Gordon Brown's flat and said there was nothing "unusual or wrong" about the PM sharing a cleaner with his brother and reimbursing him for a share of the cost.
  • The Telegraph reported that Andrew Brown received £6,577 between 2004 and 2006 for cleaning services at the prime minister's private flat.
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  • The Telegraph reported that Gordon Brown also claimed £153 twice for the same plumbing work at his constituency home - which No 10 said was done inadvertently and had been repaid. Justice Secretary Jack Straw claimed his entire council tax bill for his second home despite already enjoying a substantial discount from his local authority, worth a reported £1,500 a year.
  • Among other revelations, Ms Blears is said to have claimed for expenditure under the allowance on three different properties during the same year, spending £5,000 on furniture in three months. The Telegraph says by switching their designated second home between their London and constituency properties, Ms Blears and other MPs have been able to claim for household goods or other reimbursements for both.
  • Business Secretary Lord Mandelson claimed for improvements on his constituency home after he announced he was leaving Parliament to become an EU Commissioner. He later sold the property for a profit of £136,000. He rejected claims he used taxpayers' cash to "renovate" his home for profit, insisting the money was spent on essential maintenance. He said the Telegraph's report - which details a £1,500 gardening bill and £1,350 in house repairs - was presented to provoke public anger. "The fact is that these allowances would not have been paid if they weren't within the rules," he told BBC Radio Scotland's Good Morning Scotland programme.
Argos Media

BBC NEWS | Americas | Swine flu cases spread across US - 0 views

  • Some 226 swine flu cases have been confirmed in 30 states and more cases are expected, US health officials say. They said most cases were mild - although a small girl visiting from Mexico has died - and the spread was no worse than seasonal flu.
  • WHO chief Margaret Chan said the real test would come when the winter influenza season hits countries. "We hope the virus fizzles out, because if it doesn't we are heading for a big outbreak," she told the UK's Financial Times.
  • • The outbreak is having diplomatic repercussions, with a row breaking out between Mexico and China after Beijing quarantined 70 Mexicans • Spain raises the number of confirmed cases from 40 to 44, making it the worst-hit country in Europe • Two new cases are confirmed in France bringing the total to four, the AFP news agency reports • Turkish media reports of a patient dying from swine flu in the southern Antalya province are denied by a hospital spokeswoman to Reuters news agency
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  • The WHO said on Monday that 985 cases of the virus had been officially reported across 20 countries. Person-to-person transmission has been confirmed in six countries.
  • "Virtually all of the United States probably has this virus circulating now," Dr Anne Schuchat said. "That doesn't mean that everybody's infected, but within the communities, the virus has arrived." She said that although she expected cases to become more severe and to lead to deaths, this in itself would not be unusual as every year 36,000 people die in the US after contracting seasonal flu.
  • Health Minister Jose Angel Cordova said that the virus appeared to have peaked between 23-28 April. "The evolution of the epidemic is now in its declining phase," he told a news conference.
Pedro Gonçalves

BBC NEWS | Middle East | French President Sarkozy opens UAE base - 0 views

  • President Nicolas Sarkozy has formally opened a French military base in the United Arab Emirates, France's first permanent base in the Gulf.
  • France is a leading military supplier to the Gulf state, and signed a nuclear co-operation agreement last year. Its new base will host up to 500 French troops and include a navy base, air base, and training camp.
  • Analysts say the move positions France - along with the US and UK, which already have bases in the Gulf - in the forefront for lucrative defence contracts and nuclear energy deals.
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  • France and Pakistan agreed to cooperate in the field of civilian nuclear energy during Mr Zardari's visit to Paris earlier this month, but details of the plan have yet to be agreed.
Pedro Gonçalves

Millionaire Mullahs - Forbes.com - 0 views

  • t's rumble time in Tehran. At dozens of intersections in the capital of Iran thousands of students are protesting on a recent Friday around midnight, as they do nearly every night, chanting pro-democracy slogans and lighting bonfires on street corners. Residents of the surrounding middle-class neighborhoods converge in their cars, honking their horns in raucous support. Suddenly there's thunder in the air. A gang of 30 motorcyclists, brandishing iron bars and clubs as big as baseball bats, roars through the stalled traffic. They glare at the drivers, yell threats, thump cars. Burly and bearded, the bikers yank two men from their auto and pummel them. Most protesters scatter. Uniformed policemen watch impassively as the thugs beat the last stragglers.
  • These Hell's Angels are part of the Hezbollah militia, recruited mostly from the countryside. Iran's ruling mullahs roll them out whenever they need to intimidate their opponents. The Islamic Republic is a strange dictatorship. As it moves to repress growing opposition to clerical rule, the regime relies not on soldiers or uniformed police (many of whom sympathize with the protesters) but on the bullies of Hezbollah and the equally thuggish Revolutionary Guards. The powers that be claim to derive legitimacy from Allah but remain on top with gangsterlike methods of intimidation, violence and murder.
  • Who controls today's Iran? Certainly not Mohammad Khatami, the twice-elected moderate president, or the reformist parliament. Not even the Supreme Leader Ayatollah Ali Khamenei, a stridently anti-American but unremarkable cleric plucked from the religious ranks 14 years ago to fill the shoes of his giant predecessor, Ayatollah Khomeini, is fully in control. The real power is a handful of clerics and their associates who call the shots behind the curtain and have gotten very rich in the process.
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  • The 1979 revolution expropriated the assets of foreign investors and the nation's wealthiest families; oil had long been nationalized, but the mullahs seized virtually everything else of value--banks, hotels, car and chemical companies, makers of drugs and consumer goods. What distinguishes Iran is that many of these assets were given to Islamic charitable foundations, controlled by the clerics. According to businessmen and former foundation executives, the charities now serve as slush funds for the mullahs and their supporters.
  • Dozens of interviews with businessmen, merchants, economists and former ministers and other top government officials reveal a picture of a dictatorship run by a shadow government that--the U.S. State Department suspects--finances terrorist groups abroad through a shadow foreign policy. Its economy is dominated by shadow business empires and its power is protected by a shadow army of enforcers.
  • Ironically, the man most adept at manipulating this hidden power structure is one of Iran's best-known characters--Ali Akbar Hashemi Rafsanjani, who has been named an ayatollah, or religious leader. He was the speaker of parliament and Khomeini's right-hand man in the 1980s, president of Iran from 1989 to 1997 and is now chairman of the powerful Expediency Council, which resolves disputes between the clerical establishment and parliament. Rafsanjani has more or less run the Islamic Republic for the past 24 years.
  • He played it smart, aligning himself in the 1960s with factions led by Ayatollah Khomeini, then becoming the go-to guy after the revolution. A hard-liner ideologically, Rafsanjani nonetheless has a pragmatic streak. He convinced Khomeini to end the Iran-Iraq war and broke Iran's international isolation by establishing trade relations with the Soviet Union, China, Saudi Arabia and the United Arab Emirates. In the 1990s he restarted Iran's nuclear program. He is also the father of Iran's "privatization" program. During his presidency the stock market was revived, some government companies were sold to insiders, foreign trade was liberalized and the oil sector was opened up to private companies. Most of the good properties and contracts, say dissident members of Iran's Chamber of Commerce, ended up in the hands of mullahs, their associates and, not least, Rafsanjani's own family, who rose from modest origins as small-scale pistachio farmers.
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