In this issue:

Mahathir at UN hits new imperialism, floating exchange rates, and George Soros

China viewed as "stabilizing force" in Southeast Asia

NATO asked to redeploy to thwart a Taliban takeover

India and Israel to hold military exercises

India to build a fast breeder reactor

The Australian Prime Minister took note of the rift within the Bush Administration

From Volume 2, Issue Number 39 of Electronic Intelligence Weekly, Published Sept. 30, 2003
Asia News Digest

Mahathir at UN hits new imperialism, floating exchange rates, and George Soros

Malaysian Prime Minister Dr. Mahathir bin Mohamad, who is also the Chairman of the Non-Aligned Movement, on Sept. 25 used his last UN speech before he steps down as prime minister later this year, to warn of the pending global economic and strategic disaster. He said that the General Assembly is "unfortunately subservient to the United Nations Security Council, which in turn is subservient to any single one of the five victors of a war, fought more than half a century ago. It is hardly a democratic forum but it is all that the great civilisation of the late 20th and early 21st centuries has — a civilisation that is supposed to uphold freedom."

Mahathir warned that "history has a nasty habit of repeating itself. Today we are seeing the resurgence of European Imperialism. At first we thought that colonisation would be virtual. Merely by economic strangulation and financial emasculation, the newly independent countries could be brought to their knees, begging to be recolonised in other forms. But today we are actually faced by the old physical occupation by foreign forces. Puppet regimes are installed, dancing as puppets do.

"And this august institution, the United Nations on which we had pinned so much hope, despite the safeguards supposed to be provided by the Permanent Five, this Organisation is today collapsing on its clay feet, helpless to protect the weak and the poor. This United Nations can just be ignored, pushed aside, gesticulating feebly as it struggles to be relevant. Its organs have been cut out, dissected and reshaped so they may perform the way the puppet masters want. The World Bank, the International Monetary Fund, the World Trade Organisation have now been turned into instruments of hegemony, to impoverish the poor, to enrich the rich. It is not surprising that today the disparities between rich and poor are far greater. With an impotent United Nations and its agencies turned into national organs of the powerful, the small nations are now naked and hapless. Even if we are totally innocent, there is nothing to prevent trumped up charges to be made against us."

On the economy, and Soros, Dr. Mahathir said: "No country is safe from marauding currency traders who in a few short days can demolish the patiently nurtured economies of the developing world. Far from curbing these highway brigands, they are lauded for their philanthropy. Robin Hood at least stole from the rich to give to the poor. These highway men steal from the poor and give a paltry sum to assuage their sense of guilt. They are no philanthropists. The unipolar world dominated by a democratic nation is leading the world to economic chaos, political anarchy, uncertainty and fear. We are not going to recover, and have peace for as long as threats are used for political and economic reforms that most of the world is not ready for and not willing to accept."

On the "free market: "The free market must be recognised for what it is - a market where the bottom line is paramount. It is not a political force for the disciplining of governments.... Exchange rates should be fixed by an International Commission based on relevant issues. Apart from a small commission, no profits may be made by speculating or manipulating exchange rates."

China viewed as "stabilizing force" in Southeast Asia

The 5-day visit of Malaysia's next Prime Minister, Abdullah Badawi, to China the week of Sept. 15 left little ambivalence about the type of relationship Kuala Lumpur wants with China, and even less concern over its territorial designs. Badawi led a 250-member delegation including 8 Cabinet ministers, 4 state chief ministers, 3 deputy ministers, and a large number of leading businessmen for his first visit to China. Malaysia sees only opportunity in China, as its gateway to Southeast Asia.

An official who accompanied Badawi on his state visit said: "Going forward, we see China as a stabilizing force in the region. Chinese government leaders have assured us that they want to share their prosperity with the region. On our part, Malaysia is a natural partner for China in the region."

Malaysia is now China's seventh-largest trading partner and its No. 1 partner in Asean. Between 1996 and last year, Malaysia's trade with China grew threefold, from US$3.8 billion to US$11.4 billion.

NATO asked to redeploy to thwart a Taliban takeover

Following his meeting with the Pakistani Foreign Minister Khurshid Ahmed Kasuri on Sept. 24, the U.S. Secretary of State Colin Powell told reporters that the U.S. 'roadmap' on Afghanistan involves the finalizing of the draft constitution for Afghanistan. This will be followed by the adoption of the constitution through a loya jirga (grand council) and general elections in June 2004. The Afghan interim President has announced that the loya jirga will be held in December 2003. During his discussions, Secretary Powell had also sought Pakistan's help to curb the Taliban — who have been reportedly operating from within the Pakistani territories — and to help bring democracy back to Afghanistan.

Meanwhile, reports by an AFP correspondent from Urgun in Paktika province in eastern Afghanistan, indicate that the a group of 125 Taliban militia were spotted in the area armed with assault rifles. All around eastern, southern, and central Afghanistan, the Taliban and anti-U.S., anti-Kabul militia are getting restive and aggressive. Sighting of similar large posse of armed Taliban militia has been reported from a number of provinces in the last three weeks.

In order to prevent the Taliban take-over of major Afghan cities in these areas, Afghan interim President Hamid Karzai has urged the U.S. President Bush, during his private meeting with him this week, to pressure Pakistan to arrest the Taliban. He has also asked the NATO-led International Security Assistance Forces (ISAF) to be extended beyond Kabul into provinces troubled by a resurgent Taliban. Earlier, the UN Secretary-General Kofi Annan had also requested the expansion of the ISAF mandate.

NATO chief, Lord George Robertson, arrived in Kabul on Sept. 26, and he announced that NATO will decide in a few weeks whether it could carry out deployment of ISAF forces outside of Kabul. The NATO Secretary-General, upon arrival in Afghanistan, said: "Afghanistan still faces great challenges. Security must be established throughout the country, and NATO is now examining how best to contribute to that."

German Chancellor Gerhard Schroeder said on Sept. 25 he expected the UN Security Council to agree on deployment of the ISAF to the provinces "in a very short time."

India and Israel to hold military exercises

According to The Pioneer, a pro-government English news daily based in New Delhi, on Sept. 23, India and Israel will hold for the first time a joint military exercise with their Special Forces. Israel is also likely to supply specialized weapons for Indian commandos. The decision to hold such an exercise was decided shortly before Prime Minister Ariel Sharon's recent visit to India. The joint military exercise will take place in India, but the timetable has not been decided yet.

New Delhi has also announced the visit of Indian defense experts to Israel next month. This team will seek help to speed up development of India's indigenously-developed missiles and more cooperation in hi-tech military projects. The hi-tech projects involve joint production of unmanned drones and flight-control systems for Indian-built Light Combat Aircraft. India would also seek help from Israel on India's development of two anti-air missiles, Trishul (Trident) and Akash (Sky).

India to build a fast breeder reactor

The Vajpayee Government has approved building a 500 MW fast breeder reactor at Kalpakkam, in the southern Indian state of Tamil Nadu, according to an editorial in The Hindu on Sept. 22. The project will take eight years to complete and would cost close to $800 million. More importantly, this is one of the biggest technology development projects India has taken up, comparable to the Integrated Guided Missile Development Program, the Light Combat Aircraft, and the Nuclear Submarine project. It is also considered a vindication of 25 years of indigenous research and development of fast breeder technology by the Indian nuclear establishment.

It was almost 50 years ago, that India's leading nuclear physicist Dr. Homi Bhabha visualized a three-stage nuclear energy program for utilizing the energy potential of fissionable thorium, which India possesses in abundance. The breeder reactor occupies the second stage. The breeder reactor will use plutonium—formed in the uranium fuel elements of the first stage nuclear power plants—as fuel, and convert thorium placed around the breeder reactor core into uranium-233. U-233, a fissile material, can then be used as fuel with thorium-232, thus deriving energy from thorium. Incidentally, India is the only country committed to using thorium as fuel.

The Australian Prime Minister took note of the rift within the Bush Administration

In an interview printed in The Australian of Sept. 14, otherwise focussed on his warning that his nation is "almost certain" to be attacked again by terrorists, Australian Prime Minister John Howard says he is a strong supporter of the way the Bush Administration handled Iraq, but acknowledges some clumsiness in the diplomacy: "Some things could have been done a bit differently, some of the language perhaps on occasions." He also found the lack of cohesion within the U.S. Administration surprising: "The idea that you have an openly different view between the Pentagon and the State Department is not something we're used to." But Howard then fawningly praises G.W. Bush for his "obvious grasp of issues and details."

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