What is John Bolton talking about? What is he ever talking about?
Okay, we get it. You don’t like the deal with North Korea. Why we needed another Wall Street Journal op-ed is beyond me.
This doesn’t, of course, mean I didn’t read it. Then I went for a walk in the sun to detox my brain.
Bolton has this idea that the North Korea deal will encourage other states to take advantage of poor little US. And they are all after the Bomb!
Instead, observers—especially Iran and other nuclear weapons aspirants—have witnessed embarrassing U.S. weakness on a supposedly unrelated issue, unmentioned in the Feb. 13 agreement. That issue involves North Korea’s widely publicized demand that approximately $25 million frozen in Macau-based Banco Delta Asia (BDA) ...
[snip]
The North’s access to international financial markets to launder its ill-gotten revenues is critical both to continued financing of its nuclear regime and to keeping Kim Jong Il in power. If this is even close to what the State Department is prepared to do, who will ever again take us seriously when we threaten financial strangulation of rogue states and terrorist groups? Granting this North Korean demand would make U.S. concessions on BDA look paltry by comparison.
Iran and other nuclear aspirants? Which other nuclear aspirants, exactly? By my count there is Iran, and well, Iran.
The other candidates are quite far from this point (in some cases technologically, in others politically) and their future decisions probably hinge on the macro-level outcome of the Iran and NK nuclear issues, rather than whether or not Wachovia is willing to handle a transaction or two.
(What’s Wachovia have to do with it? Patience, grasshoppers.)
Even if we are really talking about just Iran, then Bolton still misses the point. The “financial strangulation” has a lot less to do with U.S. credibility than it does with European and especially Russian hesitation over sanctions. The point is, how will rogue states take the U.S. seriously if it’s just the U.S. alone making the threats? But hey, Bolton was only Ambassador to the United Nations, so I’m sure he put a lot of thought into the roles of other states.
As for terrorist groups, I doubt they see loss of market access as a deterrent to blowing things up. See, they are terrorists.
Now, the Wachovia bit. Bolton is obsessed that the North Korea deal has some secrety side arrangement including US bankers (code word!), the Trilateral commission and the Illuminati. Well, at least one bank, Wachovia:
Third, we now face the nagging question whether there are other secret side deals beyond BDA. Of course, the BDA agreement was not so secret that Kim Jong Il was barred from knowing about it, by definition. Most troubling, however, is that State apparently thought it too sensitive to share with the American people until the February deal broke down in an unavoidably public way. But even this was not enough for North Korea, which, sensing U.S. weakness, continues to press for more. Although conflicting stories abound, North Korea may be seeking not just the return of the BDA funds, but something much more significant: guaranteed access to international financial markets, even through an American bank. Indeed, this week Wachovia Corp. confirmed that it had been approached by the State Department to assist in the transfer of funds.
It may just be all this time speaking Russian, but I don’t understand sentences like “Of course, the BDA agreement was not so secret that Kim Jong Il was barred from knowing about it, by definition.” Да, конечно!
On the Wachovia thing, the International Herald Tribune explained that “market access” meant the ability to transfer funds without loading a wagon train up with gold bullion:
An official familiar with the long-running dispute said earlier this month the communist government asked for permission to use an American bank to transfer the funds from the Banco Delta Asia bank in the Chinese territory of Macau.
[snip]
North Korea wants to use a U.S. bank because it believes the transaction would help secure its continued access to the global financial system, the official said.
Once the money is moved to a U.S. lender, it would be sent to a bank in a third country, perhaps Russia, he said.
Ok, so I am not convinced that North Korea won’t cheat on this deal as they have on others, or that they will freeze their nuclear program when they get that BDA money. But, compromise with NK is an option that needs to be tested. We need to know whether the NK nuclear program is at least somewhat negotiable on these terms.
Budging on $25 million is not a step so publicly conciliatory as to be forever irreparable in the eyes of future bad guys. Actually, I think the public nature of the “concession” on BDA could be a plus if NK does end up cheating. Members of the 6-Party Talks and other states would be able to see that a compromise approach was attempted but did not work. They may be more willing to accept and and actually enforce a harsher approach if it becomes necessary.
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On a completely utterly unrelated note, the UAE may be planning to build a Death Star under the guise of a conference center.
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