Commentary Magazine


Topic: Manmohan Singh

RE: Fed’s Plan to Rev Up Printing Press Gets Thumbs Down

The overwhelmingly negative response to the Fed decision to print up $600B to buy bonds is intensifying as Russia and China joined European nations in slamming the move. This report explains:

Mr. Obama returned fire in the growing confrontation over trade and currencies Monday in a joint news conference with Indian Prime Minister Manmohan Singh, taking the unusual step of publicly backing the Fed’s decision to buy $600 billion in U.S. Treasury bonds—a move that has come under withering international criticism for weakening the U.S. dollar.

Gold topped $1,400 an ounce on fears of inflation as investors voted thumbs down on Ben Bernanke’s plan. And the number of critics is growing, leaving the U.S. isolated:

Germany’s criticism echoes that from other countries, including Brazil and Japan, which have complained about potential spillover from the Fed’s action. Printing more dollars, or cutting U.S. interest rates, tends to weaken the dollar and makes U.S. exports more attractive. The accompanying rise in the value of other countries’ currencies tends to damp their exports and can fuel inflation or asset bubbles, as emerging-market officials note. U.S. officials maintain the Fed’s action is about stimulating domestic demand, and that a weaker dollar is a consequence, not an objective.

On Monday, China’s Vice Finance Minister Zhu Guangyao said the U.S. isn’t living up to its responsibility as an issuer of a global reserve currency. …

The top economic aide to Russian President Dmitry Medvedev said Russia will insist at the G-20 summit that the Fed consult with other countries ahead of major policy decisions.

Luxembourg Prime Minister Jean-Claude Juncker, who is chairman of the euro-zone finance ministers, also weighed in on the Fed move, saying: “I don’t think it’s a good decision. You’re fighting debt with more debt.”

These concerns are entirely justified. Moreover, one can’t help but appreciate the irony: the “cowboy” George W. Bush was lambasted for “going it alone” and making the U.S. a pariah in the world. But worldwide resentment over the U.S. is surging as Obama is forced to lamely defend his moves as “pro-growth” (which speaks volumes about the administration’s economic illiteracy, for not even his defenders would claim that currency devaluation=growth). We hear that the “blunt criticism of U.S. policy is in large part payback for a longstanding stance by Washington policy makers that the American economy should serve as a model for others. The heated rhetoric also stems from fears that the U.S. may be looking for a back-door way to set exchange-rate policy in a way that favors the U.S.”

Combined with the incessant shin-kicking of our allies (e.g., Eastern Europe, Israel, Honduras, Britain), this latest move certainly strengthens Obama’s critics here and abroad. They contend that through a combination of ill-conceived policies and rank incompetence, Obama is rendering the U.S. less influential and less respected, which is increasing instability in the world. All and all, it is a textbook example of the perils of deploying liberal statism at home and shrinking America’s stature overseas. Unfortunately, this is not a graduate course at Harvard or a symposium at the New America Foundation. It is all too real, and unless we arrest the panoply of bad policies, America and its allies will be poorer and less safe. We already are.

The overwhelmingly negative response to the Fed decision to print up $600B to buy bonds is intensifying as Russia and China joined European nations in slamming the move. This report explains:

Mr. Obama returned fire in the growing confrontation over trade and currencies Monday in a joint news conference with Indian Prime Minister Manmohan Singh, taking the unusual step of publicly backing the Fed’s decision to buy $600 billion in U.S. Treasury bonds—a move that has come under withering international criticism for weakening the U.S. dollar.

Gold topped $1,400 an ounce on fears of inflation as investors voted thumbs down on Ben Bernanke’s plan. And the number of critics is growing, leaving the U.S. isolated:

Germany’s criticism echoes that from other countries, including Brazil and Japan, which have complained about potential spillover from the Fed’s action. Printing more dollars, or cutting U.S. interest rates, tends to weaken the dollar and makes U.S. exports more attractive. The accompanying rise in the value of other countries’ currencies tends to damp their exports and can fuel inflation or asset bubbles, as emerging-market officials note. U.S. officials maintain the Fed’s action is about stimulating domestic demand, and that a weaker dollar is a consequence, not an objective.

On Monday, China’s Vice Finance Minister Zhu Guangyao said the U.S. isn’t living up to its responsibility as an issuer of a global reserve currency. …

The top economic aide to Russian President Dmitry Medvedev said Russia will insist at the G-20 summit that the Fed consult with other countries ahead of major policy decisions.

Luxembourg Prime Minister Jean-Claude Juncker, who is chairman of the euro-zone finance ministers, also weighed in on the Fed move, saying: “I don’t think it’s a good decision. You’re fighting debt with more debt.”

These concerns are entirely justified. Moreover, one can’t help but appreciate the irony: the “cowboy” George W. Bush was lambasted for “going it alone” and making the U.S. a pariah in the world. But worldwide resentment over the U.S. is surging as Obama is forced to lamely defend his moves as “pro-growth” (which speaks volumes about the administration’s economic illiteracy, for not even his defenders would claim that currency devaluation=growth). We hear that the “blunt criticism of U.S. policy is in large part payback for a longstanding stance by Washington policy makers that the American economy should serve as a model for others. The heated rhetoric also stems from fears that the U.S. may be looking for a back-door way to set exchange-rate policy in a way that favors the U.S.”

Combined with the incessant shin-kicking of our allies (e.g., Eastern Europe, Israel, Honduras, Britain), this latest move certainly strengthens Obama’s critics here and abroad. They contend that through a combination of ill-conceived policies and rank incompetence, Obama is rendering the U.S. less influential and less respected, which is increasing instability in the world. All and all, it is a textbook example of the perils of deploying liberal statism at home and shrinking America’s stature overseas. Unfortunately, this is not a graduate course at Harvard or a symposium at the New America Foundation. It is all too real, and unless we arrest the panoply of bad policies, America and its allies will be poorer and less safe. We already are.

Read Less

Flotsam and Jetsam

Michael Barone explains young Americans’ economic outlook in the Obama era: “The programs of the Obama administration and the Democratic congressional leadership will increase government’s share of the economy and will tend to choke off private sector economic growth. We’ve already lost 8 million private sector jobs but no public sector jobs. We’ll probably create more public sector jobs. … But a nation with an ever larger public sector and an inhibited-growth private sector is a nation with fewer openings for people who want work that will benefit others. Fewer opportunities for young people who want to choose their future, just as they choose their iPod playlists and Facebook friends. Fewer opportunities for people to choose their future.”

Bill Kristol explains the economic-growth outlook in the Obama era: “Can you have a serious recovery when your — when taxes are being raised quite a lot, interest rates are going up, and the regulatory burden’s getting heavier? Those are just facts. I mean, taxes are going up. Interest rates are going up, intermediate and long-term rates, and they’re going to keep on going up because of the deficit. And the regulatory burden is getting heavier. That — I don’t know what economic theory tells you get good growth with those things going on.”

The farce of nuclear disarmament in the Obama era: “Iran said on Sunday it will host a nuclear disarmament conference this month to be attended by China, which has been resisting new sanctions against Tehran over its atomic ambitions. ‘This is an international conference and Iran, which advocates nuclear disarmament, is calling on all nations to disarm,’ Tehran’s chief nuclear negotiator Saeed Jalili told the official IRNA news agency.”

Syria-Israel relations in the Obama era (which look an awful lot like they always have): “A report submitted a few weeks ago to French President Nicolas Sarkozy by two of his top diplomats concludes that there is no chance to renew substantial negotiations between Israel and Syria in the near future, Haaretz has learned. The officials had visited the Middle East recently to investigate the possibility of French mediation between the two countries.” Agreeing to return our ambassador to Damascus apparently accomplished nothing.

Non-leadership on human rights in the Obama era: “Other nations should make clear that Burma would indeed be welcomed back — but only if it frees all political prisoners and ceases its war crimes against national minorities. … Together, these nations could exert real influence. They could tighten financial sanctions to really pinch top leaders and the entities they control; they could push the machinery of the United Nations to investigate the regime’s crimes, such as forced labor and mass rape. Now would be a good moment, in other words, to unite and use the leverage that is lying unused on the table.”

Another competitive Blue State in the Obama era: “As soon as former Maryland governor Robert L. Ehrlich Jr. announced that he was running for governor, the race was seen by national Republicans as another possible high-profile pickup, a view almost immediately shared by political prognosticators. The nonpartisan Cook Political Report adjusted its rating of the race Thursday from solidly Democratic to one short of ‘Toss Up’ — saying Ehrlich is expected to run a ‘competitive’ contest against Gov. Martin O’Malley (D).”

Another prominent Blue State Democratic governor is in trouble in the Obama era: “Few politicians are as close to Obama as the Massachusetts Democratic governor, or have deeper ties to the president and his core team of advisers. And almost no one faces a tougher re-election battle this year than [Deval] Patrick, whose disapproval ratings would be considered near-terminal if not for the three-way race that he currently finds himself in.”

Not-at-all-smart diplomacy in the Obama era: “Barack Obama is in danger of reversing all the progress his predecessors, including George W. Bush, made in forging closer U.S. ties with India. Preoccupied with China and the Middle East, the Obama administration has allotted little room on its schedule for India, and failed to get much done in the short time it did make. Hosting Prime Minister Manmohan Singh at the November state visit, the administration managed to produce cordial photo ops, but the agreements reached on education, energy cooperation, and the like dealt with trivia.”

The voice of sanity in the Obama era: “The head of the Senate Homeland Security Committee said Sunday that several domestic threats against the government are “real” but not as great as dangers posed by foreign terrorists. Sen. Joe Lieberman (I-Conn.) emphasized that the government is taking seriously the arrest of militia members and threats to lawmakers and governors but cautioned that people should not ‘overstate’ them.”

Michael Barone explains young Americans’ economic outlook in the Obama era: “The programs of the Obama administration and the Democratic congressional leadership will increase government’s share of the economy and will tend to choke off private sector economic growth. We’ve already lost 8 million private sector jobs but no public sector jobs. We’ll probably create more public sector jobs. … But a nation with an ever larger public sector and an inhibited-growth private sector is a nation with fewer openings for people who want work that will benefit others. Fewer opportunities for young people who want to choose their future, just as they choose their iPod playlists and Facebook friends. Fewer opportunities for people to choose their future.”

Bill Kristol explains the economic-growth outlook in the Obama era: “Can you have a serious recovery when your — when taxes are being raised quite a lot, interest rates are going up, and the regulatory burden’s getting heavier? Those are just facts. I mean, taxes are going up. Interest rates are going up, intermediate and long-term rates, and they’re going to keep on going up because of the deficit. And the regulatory burden is getting heavier. That — I don’t know what economic theory tells you get good growth with those things going on.”

The farce of nuclear disarmament in the Obama era: “Iran said on Sunday it will host a nuclear disarmament conference this month to be attended by China, which has been resisting new sanctions against Tehran over its atomic ambitions. ‘This is an international conference and Iran, which advocates nuclear disarmament, is calling on all nations to disarm,’ Tehran’s chief nuclear negotiator Saeed Jalili told the official IRNA news agency.”

Syria-Israel relations in the Obama era (which look an awful lot like they always have): “A report submitted a few weeks ago to French President Nicolas Sarkozy by two of his top diplomats concludes that there is no chance to renew substantial negotiations between Israel and Syria in the near future, Haaretz has learned. The officials had visited the Middle East recently to investigate the possibility of French mediation between the two countries.” Agreeing to return our ambassador to Damascus apparently accomplished nothing.

Non-leadership on human rights in the Obama era: “Other nations should make clear that Burma would indeed be welcomed back — but only if it frees all political prisoners and ceases its war crimes against national minorities. … Together, these nations could exert real influence. They could tighten financial sanctions to really pinch top leaders and the entities they control; they could push the machinery of the United Nations to investigate the regime’s crimes, such as forced labor and mass rape. Now would be a good moment, in other words, to unite and use the leverage that is lying unused on the table.”

Another competitive Blue State in the Obama era: “As soon as former Maryland governor Robert L. Ehrlich Jr. announced that he was running for governor, the race was seen by national Republicans as another possible high-profile pickup, a view almost immediately shared by political prognosticators. The nonpartisan Cook Political Report adjusted its rating of the race Thursday from solidly Democratic to one short of ‘Toss Up’ — saying Ehrlich is expected to run a ‘competitive’ contest against Gov. Martin O’Malley (D).”

Another prominent Blue State Democratic governor is in trouble in the Obama era: “Few politicians are as close to Obama as the Massachusetts Democratic governor, or have deeper ties to the president and his core team of advisers. And almost no one faces a tougher re-election battle this year than [Deval] Patrick, whose disapproval ratings would be considered near-terminal if not for the three-way race that he currently finds himself in.”

Not-at-all-smart diplomacy in the Obama era: “Barack Obama is in danger of reversing all the progress his predecessors, including George W. Bush, made in forging closer U.S. ties with India. Preoccupied with China and the Middle East, the Obama administration has allotted little room on its schedule for India, and failed to get much done in the short time it did make. Hosting Prime Minister Manmohan Singh at the November state visit, the administration managed to produce cordial photo ops, but the agreements reached on education, energy cooperation, and the like dealt with trivia.”

The voice of sanity in the Obama era: “The head of the Senate Homeland Security Committee said Sunday that several domestic threats against the government are “real” but not as great as dangers posed by foreign terrorists. Sen. Joe Lieberman (I-Conn.) emphasized that the government is taking seriously the arrest of militia members and threats to lawmakers and governors but cautioned that people should not ‘overstate’ them.”

Read Less

Flotsam and Jetsam

Obama drops below 50% approval in Gallup.

The cap-and-trade bill is so bad even John McCain opposes it. “McCain refers to the bill as ‘cap and tax,’ calls the climate legislation that passed the House in June ‘a 1,400-page monstrosity’ and dismisses a cap-and-trade proposal included in the White House budget as ‘a government slush fund.'”

A Democrat breaks with the White House on trying KSM in civilian court: “The chairman of the House Armed Services Committee expressed opposition today to Attorney General Eric Holder’s decision to give civilian trials to the 9/11 plotters. Rep. Ike Skelton (D-Mo.) penned a letter to Holder and Defense Secretary Robert Gates suggesting military trials would be a more appropriate venue for the accused terrorists. ”

Another slighted democratic ally: “Days before India’s Prime Minister Manmohan Singh is to be welcomed in the White House for his first state visit with President Obama, two perceived missteps by the Obama administration have concerned Indian officials that New Delhi suddenly has been relegated to the second tier of U.S.-Asian relations.” When is it that we start “restoring” our standing in the world?

Sen. Jon Kyl wants answers from the Justice Department regarding the NIAC.

Trouble in the “permanent majority“: “The Democratic Party’s broad ruling coalition is starting to fracture as lawmakers come under increasing pressure from the left to respond to voter anger over joblessness and Wall Street bailouts. Tensions boiled over this week, with an angry party caucus meeting Monday in the House, and black lawmakers Thursday threatening to block legislation in protest of President Barack Obama’s economic policies.  . . The squabbling is turning up pressure on the White House and Democratic leaders in Congress to respond, a challenge when their focus is on passing a health-care overhaul.” What a difference a year of one-party Democratic liberal rule makes.

Democrats insist that 2010 won’t be another 1994. However, “danger could lurk if turnout is low, factors that hurt Dem GOV candidates in NJ and VA this year.” In other words, if things keep going the way they have been, a lot of Democrats will be in trouble.

She must not have gotten the new script. This week we are being supportive of the Afghan government: “Calling Afghan President Hamid Karzai an ‘unworthy partner,’ a key Democratic leader warned Friday that Congress cannot fund an expanded military mission without a reliable ally in Kabul. Nancy Pelosi, the speaker of the House of Representatives, said moreover she did not think there was political support for sending more US troops to Afghanistan, as President Barack Obama is contemplating.”

The Obama team may not be able to give Big Labor card check but they haven’t run out of goodies: “The National Mediation Board, which oversees labor relations in the air and rail industry, this month moved to overturn 75 years of labor policy. The board plans to stack the deck for organized labor in union elections. Under a proposed rule, unions would no longer have to get the approval of a majority of airline workers to achieve certification. Not even close. Instead, a union could win just by getting a majority of the employees who vote. Thus, if only 1,000 of 10,000 flight attendants vote in a union election, and 501 vote for certification, the other 9,499 become unionized.”

Obama drops below 50% approval in Gallup.

The cap-and-trade bill is so bad even John McCain opposes it. “McCain refers to the bill as ‘cap and tax,’ calls the climate legislation that passed the House in June ‘a 1,400-page monstrosity’ and dismisses a cap-and-trade proposal included in the White House budget as ‘a government slush fund.'”

A Democrat breaks with the White House on trying KSM in civilian court: “The chairman of the House Armed Services Committee expressed opposition today to Attorney General Eric Holder’s decision to give civilian trials to the 9/11 plotters. Rep. Ike Skelton (D-Mo.) penned a letter to Holder and Defense Secretary Robert Gates suggesting military trials would be a more appropriate venue for the accused terrorists. ”

Another slighted democratic ally: “Days before India’s Prime Minister Manmohan Singh is to be welcomed in the White House for his first state visit with President Obama, two perceived missteps by the Obama administration have concerned Indian officials that New Delhi suddenly has been relegated to the second tier of U.S.-Asian relations.” When is it that we start “restoring” our standing in the world?

Sen. Jon Kyl wants answers from the Justice Department regarding the NIAC.

Trouble in the “permanent majority“: “The Democratic Party’s broad ruling coalition is starting to fracture as lawmakers come under increasing pressure from the left to respond to voter anger over joblessness and Wall Street bailouts. Tensions boiled over this week, with an angry party caucus meeting Monday in the House, and black lawmakers Thursday threatening to block legislation in protest of President Barack Obama’s economic policies.  . . The squabbling is turning up pressure on the White House and Democratic leaders in Congress to respond, a challenge when their focus is on passing a health-care overhaul.” What a difference a year of one-party Democratic liberal rule makes.

Democrats insist that 2010 won’t be another 1994. However, “danger could lurk if turnout is low, factors that hurt Dem GOV candidates in NJ and VA this year.” In other words, if things keep going the way they have been, a lot of Democrats will be in trouble.

She must not have gotten the new script. This week we are being supportive of the Afghan government: “Calling Afghan President Hamid Karzai an ‘unworthy partner,’ a key Democratic leader warned Friday that Congress cannot fund an expanded military mission without a reliable ally in Kabul. Nancy Pelosi, the speaker of the House of Representatives, said moreover she did not think there was political support for sending more US troops to Afghanistan, as President Barack Obama is contemplating.”

The Obama team may not be able to give Big Labor card check but they haven’t run out of goodies: “The National Mediation Board, which oversees labor relations in the air and rail industry, this month moved to overturn 75 years of labor policy. The board plans to stack the deck for organized labor in union elections. Under a proposed rule, unions would no longer have to get the approval of a majority of airline workers to achieve certification. Not even close. Instead, a union could win just by getting a majority of the employees who vote. Thus, if only 1,000 of 10,000 flight attendants vote in a union election, and 501 vote for certification, the other 9,499 become unionized.”

Read Less

Obama’s India Blunder

When Indian Prime Minister Manmohan Singh visits the White House next week, Obama and his administration would do well to employ their much-practiced skills at making nice. New Delhi rightly fears outside meddling after this week’s U.S.-China Joint Statement, which contained a sentence widely interpreted as an affront to India:

The two sides [China and the United States] welcomed all efforts conducive to peace, stability and development in South Asia. They support the efforts of Afghanistan and Pakistan to fight terrorism, maintain domestic stability and achieve sustainable economic and social development, and support the improvement and growth of relations between India and Pakistan. The two sides are ready to strengthen communication, dialogue and cooperation on issues related to South Asia and work together to promote peace, stability and development in that region.

The Joint Statement’s timing was particularly bad considering the recent India-China border dilemma. Both countries have reportedly increased troop presence near the blurry border, and the Dalai Lama’s visit to Indian territory that is still claimed by China did little to improve the relationship. China has emphasized that its “more pronounced” territorial issue is its border dispute with India. So New Delhi has good reason to be nervous about Chinese prying at Washington’s behest.

A spokesman from the Indian Ministry of External Affairs quickly commented on the Joint Statement, stating that “a third country role cannot be envisaged nor is it necessary” regarding India-Pakistan relations.

Already, both China and the United States are trying to downplay the significance of the Joint Statement reference.

China’s Foreign Ministry denied that a discussion took place between Obama and Chinese heads of state about U.S.-India nuclear cooperation, and its statement emphasized Beijing’s support of regional stability. The spokesperson added that China “values its friendly cooperation with” India and Pakistan and “hopes to see relations between the two continue … improve and grow.”

But India can hardly be blamed for frustration at the Obama administration’s mixed message. Yesterday, Robert Blake, the assistant secretary of state for South and Central Asia, said the United States welcomes China’s participation in stabilizing the India-Pakistan region. But he also added, “We have always said, in terms of Indo-Pakistan relations, that’s really up to India and Pakistan to decide how and when and the scope of that.” Also yesterday, William Burns, undersecretary of state for political affairs, declared that better relations with China do not necessarily come at the cost of India.

One can only hope that the ill-considered phrasing of the Joint Statement won’t hinder next week’s discussions. No doubt Obama will want Prime Minister Singh’s support on nuclear proliferation, terrorism, and security in Afghanistan and Pakistan, not to mention climate change. That Singh is the first head of state to visit the Obama White House in itself highlights the importance of Indian cooperation. If the mix-up is merely linguistic, it can be overcome. But if the lack of clarity lies within Obama’s foreign policy itself, expect a rocky summit. Obama’s diplomacy and eloquence will be tested as he attempts to please both India and China.

When Indian Prime Minister Manmohan Singh visits the White House next week, Obama and his administration would do well to employ their much-practiced skills at making nice. New Delhi rightly fears outside meddling after this week’s U.S.-China Joint Statement, which contained a sentence widely interpreted as an affront to India:

The two sides [China and the United States] welcomed all efforts conducive to peace, stability and development in South Asia. They support the efforts of Afghanistan and Pakistan to fight terrorism, maintain domestic stability and achieve sustainable economic and social development, and support the improvement and growth of relations between India and Pakistan. The two sides are ready to strengthen communication, dialogue and cooperation on issues related to South Asia and work together to promote peace, stability and development in that region.

The Joint Statement’s timing was particularly bad considering the recent India-China border dilemma. Both countries have reportedly increased troop presence near the blurry border, and the Dalai Lama’s visit to Indian territory that is still claimed by China did little to improve the relationship. China has emphasized that its “more pronounced” territorial issue is its border dispute with India. So New Delhi has good reason to be nervous about Chinese prying at Washington’s behest.

A spokesman from the Indian Ministry of External Affairs quickly commented on the Joint Statement, stating that “a third country role cannot be envisaged nor is it necessary” regarding India-Pakistan relations.

Already, both China and the United States are trying to downplay the significance of the Joint Statement reference.

China’s Foreign Ministry denied that a discussion took place between Obama and Chinese heads of state about U.S.-India nuclear cooperation, and its statement emphasized Beijing’s support of regional stability. The spokesperson added that China “values its friendly cooperation with” India and Pakistan and “hopes to see relations between the two continue … improve and grow.”

But India can hardly be blamed for frustration at the Obama administration’s mixed message. Yesterday, Robert Blake, the assistant secretary of state for South and Central Asia, said the United States welcomes China’s participation in stabilizing the India-Pakistan region. But he also added, “We have always said, in terms of Indo-Pakistan relations, that’s really up to India and Pakistan to decide how and when and the scope of that.” Also yesterday, William Burns, undersecretary of state for political affairs, declared that better relations with China do not necessarily come at the cost of India.

One can only hope that the ill-considered phrasing of the Joint Statement won’t hinder next week’s discussions. No doubt Obama will want Prime Minister Singh’s support on nuclear proliferation, terrorism, and security in Afghanistan and Pakistan, not to mention climate change. That Singh is the first head of state to visit the Obama White House in itself highlights the importance of Indian cooperation. If the mix-up is merely linguistic, it can be overcome. But if the lack of clarity lies within Obama’s foreign policy itself, expect a rocky summit. Obama’s diplomacy and eloquence will be tested as he attempts to please both India and China.

Read Less

A Summit with Singh

Yesterday, the Foreign Ministry in Beijing announced that Indian Prime Minister Manmohan Singh will begin a three-day visit to China on January 13. There are long-running border disputes and fundamental disagreements between the Chinese and the Indians. Not one will be settled during the brief moments when Singh actually sits down for talks with his counterparts.

Although the itinerary has yet to be announced, it’s clear that the visit will be filled with a series of high-profile events and made-for-television handshakes. In short, Singh’s sojourn in the Chinese capital will resemble the smiles summit that the Chinese staged for Japanese Prime Minister Yasuo Fukuda late last month. For example, Singh, if early reports are correct, will also address Chinese students at one of Beijing premier universities.

There is no such thing as coincidence when it comes to Chinese diplomacy, at least when relations with China’s big-power rivals are involved. So we need to ask ourselves why Beijing is engaging in content-less diplomacy at this moment. Optimists, of course, will say that the country’s foreign policy is maturing and Beijing wants harmonious relations while it hosts the Olympics. Pessimists—I prefer to call them “realists”—might think that the Chinese are covering their flanks in preparation for misadventure elsewhere in the region. For example, Beijing may be thinking of intensifying pressure on Vietnam—the two countries are already involved in an especially nasty phase of their long-running territorial dispute over the Spratly and Paracel islands in the South China Sea. Or perhaps the Chinese are thinking of taking a bite out of Taiwan, such as a quick grab of its outlying islands.

In any event, China is undoubtedly trying to woo Tokyo away from Washington and prevent New Delhi from getting even closer to America. To the extent that China has any grand strategy at this moment, it is to push the United States out of Asia and make itself the unquestioned hegemon there. That means, at a minimum, Washington, in addition to problems elsewhere, needs to think about the next steps toward consolidating its relationship with India. The problems in the Middle East are important, of course, but superpowers never have the luxury of concentrating all their attentions on just one problem or region.

Yesterday, the Foreign Ministry in Beijing announced that Indian Prime Minister Manmohan Singh will begin a three-day visit to China on January 13. There are long-running border disputes and fundamental disagreements between the Chinese and the Indians. Not one will be settled during the brief moments when Singh actually sits down for talks with his counterparts.

Although the itinerary has yet to be announced, it’s clear that the visit will be filled with a series of high-profile events and made-for-television handshakes. In short, Singh’s sojourn in the Chinese capital will resemble the smiles summit that the Chinese staged for Japanese Prime Minister Yasuo Fukuda late last month. For example, Singh, if early reports are correct, will also address Chinese students at one of Beijing premier universities.

There is no such thing as coincidence when it comes to Chinese diplomacy, at least when relations with China’s big-power rivals are involved. So we need to ask ourselves why Beijing is engaging in content-less diplomacy at this moment. Optimists, of course, will say that the country’s foreign policy is maturing and Beijing wants harmonious relations while it hosts the Olympics. Pessimists—I prefer to call them “realists”—might think that the Chinese are covering their flanks in preparation for misadventure elsewhere in the region. For example, Beijing may be thinking of intensifying pressure on Vietnam—the two countries are already involved in an especially nasty phase of their long-running territorial dispute over the Spratly and Paracel islands in the South China Sea. Or perhaps the Chinese are thinking of taking a bite out of Taiwan, such as a quick grab of its outlying islands.

In any event, China is undoubtedly trying to woo Tokyo away from Washington and prevent New Delhi from getting even closer to America. To the extent that China has any grand strategy at this moment, it is to push the United States out of Asia and make itself the unquestioned hegemon there. That means, at a minimum, Washington, in addition to problems elsewhere, needs to think about the next steps toward consolidating its relationship with India. The problems in the Middle East are important, of course, but superpowers never have the luxury of concentrating all their attentions on just one problem or region.

Read Less

If You Can’t Beat ‘Em…

Today, Secretary of State Condoleezza Rice and her Indian counterpart Shri Pranab Mukherjee issued a joint statement that their two countries completed negotiations on the long-stalled nuclear pact, known as the “123 agreement.” Under this agreement, the United States will provide nuclear fuel and equipment to India for the first time in three decades. Before it can be implemented, however, the U.S. Congress, the International Atomic Energy Agency, and the Nuclear Suppliers Group must approve the arrangement, which was first announced by President Bush and Prime Minister Manmohan Singh two years ago this month.

The agreement has aroused the opposition of proliferation experts because it sets a number of troubling precedents. India, for instance, is not a member of the Nuclear Non-Proliferation Treaty. The Indians will be reprocessing nuclear fuel from the United States, even though Washington is trying to prevent Iran, an NPT signatory, from enriching and reprocessing uranium. And New Delhi has made no promises about not testing nuclear weapons (India detonated a “peaceful nuclear explosive” in 1974 and five devices in 1998).

So the “123 agreement” marks a turning point: America has apparently given up trying to stop the spread of nukes, and is now trying to counter proliferators by enhancing New Delhi’s nuclear capabilities. Both Beijing and Moscow have stymied Washington’s nonproliferation efforts for decades, and the Bush administration has started playing their own game. The Chinese, of course, will be the big losers: the Indians have been their historic competitors in this arena.

Yet the nuclear deal with India represents much more than a momentous change in American proliferation policy. The pact symbolizes the growing relationship between the world’s largest democracy and its most powerful one. The United States and India could end up as the core of a loose alliance of democratic nations matched against the planet’s authoritarian ones. Which means that his administration’s handling of the “123 agreement” may become President Bush’s most enduring legacy.

Today, Secretary of State Condoleezza Rice and her Indian counterpart Shri Pranab Mukherjee issued a joint statement that their two countries completed negotiations on the long-stalled nuclear pact, known as the “123 agreement.” Under this agreement, the United States will provide nuclear fuel and equipment to India for the first time in three decades. Before it can be implemented, however, the U.S. Congress, the International Atomic Energy Agency, and the Nuclear Suppliers Group must approve the arrangement, which was first announced by President Bush and Prime Minister Manmohan Singh two years ago this month.

The agreement has aroused the opposition of proliferation experts because it sets a number of troubling precedents. India, for instance, is not a member of the Nuclear Non-Proliferation Treaty. The Indians will be reprocessing nuclear fuel from the United States, even though Washington is trying to prevent Iran, an NPT signatory, from enriching and reprocessing uranium. And New Delhi has made no promises about not testing nuclear weapons (India detonated a “peaceful nuclear explosive” in 1974 and five devices in 1998).

So the “123 agreement” marks a turning point: America has apparently given up trying to stop the spread of nukes, and is now trying to counter proliferators by enhancing New Delhi’s nuclear capabilities. Both Beijing and Moscow have stymied Washington’s nonproliferation efforts for decades, and the Bush administration has started playing their own game. The Chinese, of course, will be the big losers: the Indians have been their historic competitors in this arena.

Yet the nuclear deal with India represents much more than a momentous change in American proliferation policy. The pact symbolizes the growing relationship between the world’s largest democracy and its most powerful one. The United States and India could end up as the core of a loose alliance of democratic nations matched against the planet’s authoritarian ones. Which means that his administration’s handling of the “123 agreement” may become President Bush’s most enduring legacy.

Read Less




Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.