Clinton: Russia and China will 'pay price' for supporting Assad

Russia rejects in the strongest possible terms allegations that it supports President Assad in the Syrian conflict. US Secretary of State Hillary Clinton said Moscow and Beijing must 'pay a price' for backing Assad.

“I do not believe that Russia and China are paying any price at all – nothing at all – for standing up on behalf of the Assad regime. The only way that will change is if every nation represented here directly and urgently makes it clear that Russia and China will pay a price,” Clinton warned.­

Russia’s Deputy Foreign Minister Sergey Ryabkov said the west is operating within a friend-or-foe framework that he called outmoded.

“We categorically reject that such a question would even be posed regarding the current situation in Syria and Russia’s ‘backing’ of President Bashar Assad. This is not a question of supporting certain political figures or leaders. This is a question of managing a crisis situation in the country within a normal political framework,” Ryabkov said.

“Unfortunately, we’re unable to get a basic understanding from our western partners. The west is still appealing to “friend-or-foe” terms. We considered such terminology to be a thing of the past,” Ryabkov explained.

Russia and China once again opted not to attend the “Friends of Syria” meeting. Neither Moscow nor Beijing believe the meeting in the French capital will be helpful in uniting the Syrian opposition “on a constructive basis”.

“We have frankly laid out the reasons why we have restrained from joining the mechanism, the very name of which has a contradiction between the word and the deed,” Russia’s Foreign Minister Sergey Lavrov said earlier this week.

The US Secretary of State further criticized Russia for the maintenance of Syria’s Soviet-made helicopters. Two weeks ago Hillary Clinton lashed out at Russia for repairing three Syrian helicopters, saying their presence “will escalate the conflict quite dramatically.”

The Russian Foreign Ministry swiftly refuted the allegations.

“In 2008 there was a contract to repair them. They are still to be assembled after delivery'', Lavrov said. ''That entire process will take at least three months. So to speak about something we have just sold to Syria, which is then to be used in action, is not true at all,” he added.

Meanwhile, Kofi Annan called on the West and Russia to lay aside their differences and work towards a sooner end to the Syrian bloodshed, which according to the UN latest estimates, has taken some 15,000 lives.

"They [the West] accuse the Russians of arming the [Syrian] government. The Russians accuse them of arming the opposition and flooding the place with weapons. This is instead of coming together to see what can be done," Annan told the Guardian on Friday.

US to seek another UN Security Council resolution­

The Paris conference wrapped up with a six-point resolution, affirming that more definitive UN Security Council action is required to resolve the 16-month conflict in Syria.

Hillary Clinton said the lack of compliance with Annan’s peace plan or obstruction to the transition should be punished with further sanctions.

"We should go back and ask for a resolution in the Security Council that imposes real and immediate consequences for non-compliance, including sanctions," ranging from economic measures to military force, she said.

Two previous UNSC resolutions have been vetoed by China and Russia.

Friends of Syria’s meeting also concluded with an agreement that the Syrian opposition should receive broader support, while those “who carry out and support repression” must face tougher and wider sanctions.

In the meeting, French President Francois Hollande demanded Assad step down. The Syrian opposition also called for humanitarian corridors and a no-fly zone to be implemented.

The Friends of Syria gathering comes just a week after a UN-led summit in Geneva where the international community endeavored to reach a consensus on the conflict. They agreed to get behind UN envoy Kofi Annan’s plan for a transition government in Syria.

However, Russia said that western powers were purposely distorting the terms of the agreement to push for the removal of Assad.

US Secretary of State Hillary Clinton claimed that the agreement said Assad must leave office, whereas Moscow claims that the original accord made no allusion to the removal of the Syrian president.

Iranian crude holding over $100 in Asian markets

TEHRAN - Iranian crude oil has traded at over $100 per barrel with Asian refineries this week as the Iranian parliament forwarded a proposal to block the strategic Strait of Hormuz to prevent the passage of tankers that carry oil to countries that have imposed sanctions on Iran, the Mehr News Agency reported.

The measure was response to the European Union’s oil embargo on Iran that took effect on July 1 as well as a U.S. law that penalizes countries that do business with the Central Bank of Iran by denying their banks access to the United States market. The law came into force on June 28.

On June 9 Iran slammed fellow OPEC members Saudi Arabia, Kuwait and the United Arab Emirates as oil quota "violators", accusing them of depressing global crude prices by over-pumping.

Iran's OPEC representative, Mohammad Ali Khatibi, said Tehran had officially protested to OPEC that Saudi Arabia was "saturating the market" under pressure from the United States and the European Union, according to the IRNA News Agency.

"It is not right that two or three countries compensate for a country that is being sanctioned. OPEC members should not work against each other," Khatibi was quoted as saying.

On June 30 Iranian Oil Minister Rostam Qasemi called for an emergency OPEC meeting, saying the current market value of oil has become "illogical."

Some OPEC countries including Venezuela and Algeria responded to Iran’s call for emergency meeting, a move which was influential in pushing prices up.

Qasemi had said at a recent OPEC meeting in Vienna the member states agreed to hold emergency meeting if oil prices fell below $100 per barrel.

Qasemi said that if OPEC members do not observe their quota and the organization's production ceiling of 30 million barrel per day, the market will fall into chaos.

Brent crude was trading at $95.51 per barrel in London on Friday.

After 8,763 soldiers killed and a stream of defectors, Assad still thinks he can win

DEBKAfile Exclusive Report

In its 17-month crackdown on dissent, the Syrian army had by early July, lost 8,763 dead and 21,357 wounded. Some units lost a quarter of their manpower. Around 600 tanks and APCs – six percent of the Syrian armored corps fleet – were crippled. Around 200 can be fixed but repairs will take three months.

Defections from all ranks up to general are depleting combat divisions. All in all, the Syrian army has never been hit with this scale of casualties and losses. Yet Bashar Assad and his ruling family, some members of whom hold high military, security and intelligence command, show no cracks or fear of impending failure.

Just the reverse: President Assad boasted to the Turkish Hurriyet in a recent interview that were it not for the majority support he enjoys from the Syrian people he would have fallen like the Persian Shah in 1979.

The Syrian ruler is generally unfazed by the stream of high officers defecting to the rebels because, as debkafile reported on July 2 – he has quietly made a clean sweep of long-serving elite commanders, especially Sunnis, and replaced them with younger Alawite officers, drawn from security and intelligence agencies and the loyal, exceptionally brutal Alawite Shabiha militia.

Some of the defectors are generals who were quietly retired on full pay; others, mid-ranking officers who see their prospects of promotion vanishing in the incoming surge of young Alawite officers awarded top jobs.

The latest high-ranking defector, Brig.-Gen. Manaf Tlass, 105th Brigade commander of the Republic Guard belongs to the second category, debkafile’s intelligences disclose. His desertion is potentially a lot more damaging to the regime –politically rather than militarily.

He did not abscond to rebel ranks in Turkey as the Syrian opposition reported Friday, July 6, but headed for Paris to join his father, Gen. Mustafa Tlass, former Syrian Defense Minister who served Bashar Assad and his father for 40 years, and his daughter Nahed Ojjeh, widow of the leading Saudi arms dealer Akkram Ojjeh.

Both have good connections around the Arab world and are close to the Russian ruling elite in Moscow.

Mustafa Tlass left Syria five months ago over a conflict of loyalties: The prominent Sunni Tlass clan spearheaded the anti- Assad revolt in Rastan, a town near Homs. To avoid taking sides, Tass senior decamped.

His son, Brig.-Gen. Manaf, served in the Republic Guard defending the presidential place on Mount Qasioun, the nerve center of Assad’s vicious campaign to suppress dissent. As a member of the presidential inner circle, he was certainly part of the military establishment running that campaign.

Indeed, Assad rewarded his loyalty by letting him keep his job, only putting his promotion to general on hold.

Manaf, realizing his career prospects as a Sunni had been overtaken by the advancing Allawitization of the top Syrian command, decided to join his father.

According to our sources, he actually flew out of Damascus on June 26, not this week as widely reported.

From their new base in Paris, the heads of the Tlass clan have yet to decide which way to jump – whether to make use of their excellent connections in Moscow or join up with the pro-Western “Friends of Syria” Western-Arab group whose latest meeting in Paris, Friday, July 6, was chaired by US Secretary of State Hillary Clinton.

The Assad regime would suffer a serious setback if the Tlasses opted for the West and its Arab enemies.

US diplomats are therefore going out of their way to rope them in. They have turned to Firas Tlass, the powerful Syrian clan’s Dubai-based “finance minister,” for help. Above all, they are going to great lengths to dissuade these prominent Sunnis from gravitating toward their old ties in Moscow.

Saudis are buying nuclear-capable missiles from China

DEBKAfile  Exclusive Report 

debkafile’s military sources report that Saudi Arabia has set its feet on the path to a nuclear weapon capability and is negotiating in Beijng the purchase of Chinese nuclear-capable Dong-Fen 21 ((NATO-codenamed CSS-5) ballistic missile.

China, which has agreed to the transaction in principle, would also build a base of operations near Riyadh for the new Saudi purchases.

As we reported last year, Saudi Arabia has struck a deal with Pakistan for the availability on demand of a nuclear warhead from Islamabad’s arsenal for fitting onto a ballistic missile.

Riyadh owns a direct interest in the two most active Middle East issues: Iran and Syria.
Iran’s nuclear weapons program has been advancing for two decades regardless of countless attempts at restraint by every diplomatic tool under the sun and a rising scale of sanctions – to no avail.

Tehran marches on regardless of impediments. In Istanbul, Tuesday, July 3, the six powers and Iran failed the fourth attempt to reach an accommodation on Iran’s nuclear program.

The Syrian ruler Bashar Assad remains equally undeterred by international condemnation. Saturday, June 30, the US and Russia again failed to agree on a joint plan of action in Syria.

Saudi forces have been poised for action in Syria on the Jordanian and Iraqi borders since US Secretary of State Leon Panetta visited Riyadh in late June.

On July 1, they redoubled their military preparedness when the European Union clamped down an oil embargo on Iran. The Saudis, the US Fifth Fleet and the entire Gulf region are since braced for Iranian reprisals which could come in the form of closure by Tehran of the vital Straits of Hormuz to shipping or strikes against the Gulf emirates’ oil exporting facilities.

Tension shot up again when Iran’s Revolutionary Guards launched a three-day missile drill against simulated enemy bases in the region – expanding its threats to include US forces and bases in the region, Israel and Turkey.

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UN calls for 'billionaires tax' to help world's poor

By Tim Witcher | AFP

The United Nations on Thursday called for a tax on billionaires to help raise more than $400 billion a year for poor countries.

An annual lump sum payment by the super-rich is one of a host of measures including a tax on carbon dioxide emissions, currency exchanges or financial transactions proposed in a UN report that accuses wealthy nations of breaking promises to step up aid for the less fortunate.

The annual World Economic and Social Survey says it is critical to find new ways to help the world's poor as pledged cash fails to flow.

The report estimates that the number of people around the globe worth at least $1 billion rose to 1,226 in 2012.

There are an estimated 425 billionaires in the United States, 315 in the Asia-Pacific region, 310 in Europe, 90 in other North and South American countries and 86 in Africa and the Middle East.

Together they own an estimated $4.6 trillion so a one percent tax on their wealth would raise more than $46 billion, according to the report.

"Would this hurt them?" it questioned.

"The 'average' billionaire would own $3.7 billion after paying the tax. If that billionaire spent $1,000 per day, it would take him or her over 10,000 years to spend all his or her wealth," the report says.

It says that the wealth of billionaires grew at an average rate of four percent a year in the two decades before the 2008-2009 financial crisis.

"If that rate of growth returned with no wealth tax, the average billionaire's wealth would double in less than 18 years."

The idea could appeal to the likes of Warren Buffett, the US tycoon who has complained that he pays a lower tax rate than his secretary. France's new Socialist government has caused consternation by vowing a 75 percent tax on salaries above one million euros ($1.24 million).

But the UN acknowledged that the idea is unlikely to get widespread support from the target group, saying that for now its tax on the unimaginably wealthy remains "an intriguing possibility."

"It has not been regarded as a means of raising revenues for international cooperation," the report says.

The document gives other ideas for international taxes, including:

-- a tax of $25 per tonne on carbon dioxide emissions would raise about $250 billion. It could be collected by national governments, but allocated to international cooperation.

-- a tax of 0.005 percent on all currency transactions in the dollar, yen, euro and pound sterling could raise $40 billion a year.

-- taking a portion of a proposed European Union tax on financial transactions for international cooperation. The tax is expected to raise more than $70 billion a year.

It also suggests expanding a levy on air tickets that a number of nations already impose to raise money for drugs for poor states through UNITAID, a UN initiative.

The report says more than $1 billion has been handed over to UNITAID since the levy started in 2006.

France has a one euro tax for a domestic flight in economy and six euros for international flights -- with 10 euros for business class on domestic flights and 40 euros on international tickets. The air industry fiercely opposes any extension of the tax, arguing that it already pays heavily in taxes and levies.

However, because of budget cuts, aid and development assistance to poor countries fell $167 billion short of promised levels in 2011, according to Rob Vos, the report's lead author.

The UN expert said the taxes make "economic sense" as they stimulate the green economy and "mitigate financial market instability."

"In short, such new financing mechanisms will help donor countries overcome their record of broken promises," he added.

Without commenting on any of the individual taxes proposed, UN Secretary General Ban Ki-moon said that if the new "innovative financing" is to become viable, "strong international agreement is needed."