North Korea’s Power Transition

By: – Col. Bob Maginnis

North Korea’s dying leader Kim Jong-Il, 68, last week began laying the groundwork for transferring power to his youngest son. That transition is important because the range of possible outcomes include an atomic war or a nation that abandons its radical past to become a member of the international community.

North Korea last changed its head of state in 1994 when regime founder Kim Song-Il died and his son Kim Jong-Il took over. Kim Jong-Il’s political introduction began 14 years earlier and even with that lead he needed another three years after his father’s death to completely secure control. Those years were marred by a deteriorating economy while millions starved to death.

The plan to usher the Kim dynasty into a third generation comes very late by comparison. Kim Jong-Il just launched a public relations (PR) campaign to make his little known youngest son, Kim Jong-Un, a household name and build-up the youth’s credibility among Pyongyang’s skeptical elite who see the dynastic succession as a contradiction of Communist ideology.

The PR and credibility-building processes began when North Korea’s Central Committee declared in August Kim Jong-Un “the only successor” to Kim Jong-Il which was followed by a flurry of prestigious appointments.

Last week the 27 year-old “crown prince” was elevated to the rank of a four-star general and named deputy chairman of the Military Commission of the Workers’ Party. But Kim Jong-Un will need help before he is ready to lead.

That is why Kim Jong-Il set-up a kind of Communist regency which includes his sister Kim Kyong Hui, 64, who the elder Kim also appointed as a four-star general. It’s not a coincidence that Kim’s sister’s husband, Jang Song-Taek, who handles the day-to-day duties of running North Korea, will work with his wife to guide the young Mr. Kim’s transition. Also acting as a regent is Vice Marshal Ri Yong-Ho who the elder Kim just elevated to the Military Commission’s other deputy chairman position. Ri is expected to tutor the “crown prince” and help curry support for him among the military elite.

Kim Jong-Il’s leadership transition plan faces serious obstacles such as the inevitable dissatisfaction of some military leaders with young Kim’s sudden rise to power. But the most troubling obstacle may be the feeling by Mr. Kim or his regents that he must prove himself militarily by engaging in provocative actions.

The New York Times reported U.S. Defense Secretary Robert Gates expressed a sobering view regarding this aspect of the succession struggle. Gates ascribed the sinking of a South Korean warship by a North Korean torpedo this March to the succession process. Apparently, Gates agrees, sinking the warship was meant to earn Mr. Kim the military’s respect. What else might the young man be willing to do to earn “the military’s respect?”

Last week’s flurry of activity surrounding the generational transition news captured most of the attention but there were other actions that sent mixed signals about the regime’s intentions—some positive and others decisively negative.

Pyongyang demonstrated positive interest by re-engaging South Korea. Last week North Korea joined the first inter-Korean military talks in two years—although nothing was resolved—and on October 2 North Korea proposed government-level talks to resume South Korean tourism to North Korea’s Mount Kumgang. It also agreed to hold reunions of families separated by the Korean War on October 30-November 5.

Pyongyang renewed its decisively negative war-like rhetoric last week as well. A North Korean spokesman at the United Nations General Assembly vowed his country would strengthen its nuclear arsenal because of the perceived U.S. military threat. The regime also blasted a just completed U.S.-South Korean joint naval exercise in the Yellow Sea. Pyongyang said the exercise proved the U.S. and South Korea are preparing for a “real war” and added Pyongyang will “wipe out” any provocateurs.

Those tough statements keep tensions high and explain why South Korea’s defense ministry seeks a 10% budget increase for 2011. One-third of that increase is intended to buy an anti-missile Aegis destroyer, submarines, and anti-submarine torpedoes to detect and destroy North Korea’s unconventional threats.

Finally, Pyongyang may be positively signaling interest in a new direction for its economy. Stratfor, a U.S. intelligence think tank, indicates Pyongyang reinstated former premier Pak Pong Ju, “who had flirted with Chinese-style economic ideas for North Korea.” Stratfor states that opening special economic zones in North Korea was discussed during Kim Jong-Il’s most recent visit to China.

Stratfor also reported the elevation of three men with significant negotiating experience with the U.S. Kang Sok Ju, who helped negotiate the 1994 Agreed Framework which earned considerable largess from America for Pyongyang’s failed promise to shut down its nuclear program, is now vice premier. The regime also elevated two nuclear negotiators with experience with the U.S. These elevations may signal that Pyongyang is ready to resolve the nuclear issue and move to one of economic development and international integration, according to Stratfor.

What should the U.S. do during the transition period?

First, we must standby our allies. We acted appropriately by conducting joint naval exercises with South Korea to demonstrate resolve against Pyongyang’s warship attack in March. More exercises are warranted and we should also sell Seoul sophisticated capabilities it needs to defend itself.

Second, we must lean on China to keep Pyongyang in check. China, which enjoys a special relationship with North Korea, must help stabilize that country. Beijing has consistently taken steps to aid Pyongyang with food and energy supplies in the past and this must continue to prevent a repeat of the economic distress that occurred during the 1994 transition.

China should also help shape the emerging political situation. Reportedly Kim Jong-Il made two visits to Beijing in recent months to bolster China’s support and solicit its endorsement of the transition plan. Beijing should use its influence to wean Pyongyang’s new leadership from its combative ways and seek to bring it into the international community.

Finally, the U.S. should cautiously pursue a relationship with North Korea’s new leadership. It is possible Pyongyang’s renewed interest in talking with South Korea and the elevation of those with the most experience with the U.S. will lead to something positive. However, preconditions must be satisfied before re-engaging North Korea.

We must insist on no more empty promises. We’ve been consistently burned by Pyongyang’s promises to dismantle its atomic programs for aid. Our aid arrives then Pyongyang reneges, which is followed by something provocative like testing an atomic device.

There are many ways North Korea’s new leadership can demonstrate its sincerity. It can stop threatening its neighbors; sign a peace treaty ending the almost 60-year-old Korean War; stop proliferating weapons across the globe; develop economic zones like those in China to diversify its failed economy; abandon its nuclear weapons program; dismantle its ballistic missile arsenal; distribute its massive army-controlled rice stores to the starving to name but a few.

North Korea faces a very uncertain transition. It is not clear that Kim Jong-Un, the “crown prince,” will take the reigns of power. But whoever is the new head of state must choose whether to continue Kim Jong-Il’s combative strategy that threatens nuclear war or reject intimidation for a course of action that brings North Korea into the international community. While the world waits to see which path the new leader takes, America’s prudent strategy should be to upgrade South Korean capabilities and maintain a strong deterrent.

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10/08/10

* Abbas to Mitchell: I will resign if settlement construction continues Palestinian President Mahmoud Abbas informed U.S. envoy George Mitchell last week that the renewal of settlement construction will not only bring about the collapse of peace talks but it will also induce his resignation.

* Hezbollah militants training in Syria missile base, satellite images show The Syrian army has a Scud missile base near Damascus, according to recent satellite photos.

* North Korea talks up Kim Jong-un as likely successor A top North Korean official has made the first public comments that leader Kim Jong-il is likely to be succeeded by his youngest son, Kim Jong-un.

* Abbas to consult Arab League on quitting Mid-East talks Mr Abbas has arrived in the Libyan city of Sirte, where the Arab League will hold two days of meetings.

* Israeli military ‘stronger than ever’ despite threat of 5-front missile war Israel’s intelligence community has assessed that the Jewish state was equal to the task of confronting a five-front missile war.

* US cautions Egypt against doing business with Iran Washington has expressed its regret over Egypt’s recent decision to renew direct flights between Cairo and Tehran, after more than 30 years.

* Netanyahu: Israel protects the rights of all citizens, Jews and non-Jews Israel is a Jewish and democratic state that protects the rights of all its citizens.

* A View From Israel: Madman or prophet? While many regard controversial Dutch politician Geert Wilders as alarmist, others say he has deep perception of perils of radical Islam.

* Nobel Peace Prize awarded to China dissident Liu Xiaobo Making the announcement in Oslo, the head of the Norwegian Nobel committee said Mr Liu was “the foremost symbol” of the human rights struggle in China.

* Security and Defense: Nuclear worming In April 2007, Estonia came under attack. Not by terrorists, fighter planes or tanks, but by computers.

10/07/10

* Growing ties between Turkey, China, Iran worry Israel and U.S. The United States and Israel are watching with concern the growing military cooperation among Turkey, China and Iran.

* Israel’s Netanyahu backs Jewish loyalty oath Israeli PM Benjamin Netanyahu has re-introduced a proposal to require any non-Jew taking Israeli citizenship to swear allegiance to Israel as a “Jewish and democratic state”.

* Vatican’s ‘Special Middle East Assembly’ set to begin An unprecedented Vatican Synod of Bishops – a “Special Assembly for the Middle East” – will be held in Vatican City from October 10 to 24.

* Iraqis trains Kurds for security duty near Turkey Kurdish forces have been training with the Iraq Army for security operations near the border with Turkey.

* Did Israel ever consider using nuclear weapons? Media outlets around the world have reported that state archive documents declassified this week showed that Israel’s leadership considered using “drastic means”.

* French, Spanish foreign ministers heading to Israel to push Sarkozy’s peace summit French Foreign Minister Bernard Kouchner and Spanish Foreign Minister Miguel Moratinos are to arrive in Israel Sunday.

* Jerusalem mayor would ‘welcome’ Palestinian embassy, but not partition Jerusalem mayor Nir Barkat said Wednesday that he would welcome a Palestinian embassy in Jerusalem.

* EU-China summit ends in discord An acrimonious EU-China summit on Wednesday (6 October) ended with a cancelled press conference.

* Is Hizbullah trying to take over Lebanon with Iran’s help? Hizbullah and Iran now have a common interest in escalating tensions in the Middle East.

* ‘Palestinians accept 2-month freeze extension proposal’ The Palestinians have accepted a US proposal calling on Israel to extend a West Bank settlement slowdown for another two months.

10/06/10

* Uncertainty over US plans as war enters 10th year It’s make-or-break time in Afghanistan. The war enters its 10th year Thursday, and this is no ordinary anniversary.

* Hamas threatens retaliation against PA The armed wing of Hamas and its allies said Wednesday they would retaliate against the Western-backed Palestinian Authority.

* Taliban set preconditions for formal peace talks Taliban officials have engaged in periodic, discreet contacts with Afghan and U.S. officials for months.

* Syria celebrates anniversary of 1973 war with Israel Wednesday saw the 29th anniversary of the 1973 conflict between Israel and its Arab neighbors and was marked with celebrations in Syria.

* Geert Wilders in Berlin: ‘Tear down this wall . . . of denial and ignorance’ about Islam I am very happy to be here in Berlin today. As you know, the invitation which my friend René Stadtkewitz extended to me, has cost him his membership of the CDU group in the Berlin Parliament.

* National interests creating tension in EU commission A group of EU commissioners from smaller member states is growing increasingly angry with a number of their larger-state colleagues.

* Risks and Advantages in U.S. Effort in Mideast When President Obama reopened face-to-face talks between the Israelis and Palestinians last month, he pledged that his administration would hold their hands.

* Obama upset over intelligence leaks President Barack Obama is upset over a rash of intelligence leaks in Washington.

* PA: Upgrading Western Wall Plaza Aimed at ‘Seizing’ Jerusalem Palestinian Authority officials have lambasted Israel’s plans to renovate and upgrade the historic Western Wall plaza area.

* Iran Extends Ties with Lebanon and Egypt The Islamic Republic of Iran is strengthening its ties with its area neighbors, particularly Lebanon and Egypt.

Fears of Chinese land grab as Beijing’s billions buy up resources

By: Sarah Arnott – independent.co.uk

China is pouring another $7bn (£4.4bn) into Brazil’s oil industry, reigniting fears of a global “land grab” of natural resources.

State-owned Sinopec clinched the deal with Spain’s Repsol yesterday to buy 40 per cent of its Brazilian business, giving China’s largest oil company access to Repsol Brasil’s estimated reserves of 1.2 billion barrels of oil and gas. The whopping price tag for Repsol Brasil – which values the company at nearly twice previous estimates – is a sign of China’s willingness to pay whatever it takes to lock in its future energy supplies and avoid social unrest. It will give the company enough cash to develop all its current oil projects, including two fields in the Santos Basin.

The Repsol deal is not China’s first in Brazil. In February last year, Sinopec stumped up a $10bn loan to Petrobras, the state-owned oil company, in return for guaranteed supplies of 10,000 barrels of oil every day for the next 10 years.

It also follows a slew of similar deals across the world. While much of the developed world is baulking at its debts in the aftermath of the financial crisis, China has continued a global spending spree of unprecedented proportions, snapping up everything from oil and gas reserves to mining concessions to agricultural land, with vast reserves of US dollars.

This year alone, Chinese companies have laid out billions of dollars buying up stakes in Canada’s oil sands, a Guinean iron ore mine, oil fields in Angola and Uganda, an Argentinian oil company and a major Australian coal-bed methane gas company.

“China is rich in people but short of resources, and it wants to have stable supplies of its own rather than having to buy on the open market,” Jonathan Fenby, China expert and director of research group Trusted Resources, said.

But it is a strategy causing anxiety elsewhere in the world. Rumours in recent weeks that China’s Sinochem may make a bid for Canada’s Potash Corporation raised fears that the Middle Kingdom would corner the global market for fertiliser.

Similarly, when BP’s share price plummeted after Barack Obama’s criticisms in the wake of the Gulf of Mexico oil spill, there was concern that the company would be driven into the hands of the Chinese.

More explicitly still, when the aluminium giant Chinalco was trying to buy Anglo-Australian Rio Tinto last year, television ads protesting against the scheme from no less than the Senate opposition leader bellowed “Keep Australia Australian”.

“Chinese acquisitions are increasingly on the political radar,” said Robin Geffen, the chief executive of Neptune investment Management, which runs a leading China investment fund. “The pinch points come when people feel that supplies affecting national security could be threatened by China buying them all up.”

Contrary to the conspiracy theories, China is not looking for world domination. It has seen economic growth averaging a massive 10 per cent for the best part of three decades, and although it is expected to drop into the high single-digits in the coming years – in response to a dip in export demand – the natural resources required to support even slightly moderated growth are an overwhelming priority.

China is already the second-largest oil consumer in the world and far outstrips its domestic supplies. Neptune estimates that it will need to buy two companies the size of BP each year for the next 12 years to meet its growing domestic energy demand. Demand for electricity alone is growing each year equivalent to Britain’s entire output.

“These are massive, massive numbers,” Mr Geffen said. “The deal with Repsol today, and all the others we have seen in recent years, are wholly strategic, to nail down what they estimate future demand will be.”

But, despite the concerns that China is cornering the market and will push up prices, the developed world also has a vested interest in China pursuing a successful strategy.

Notwithstanding qualms about a change in the global balance of power, China’s continued economic growth has been vital to hauling the world out of recession – and will continue to do so for the foreseeable future. The threat from political instability if Chinese growth stalls has similarly global implications. “The whole world needs China to have these resources to help pull us out of recession and avoid local unrest,” said Ian Sperling-Tyler, a partner and oil and gas expert at the consultancy Deloitte.

But concerns remain about China’s involvement in politically difficult countries, particularly in Africa. China is not squeamish about the politics of its business partners. It follows a simple formula, offering premium prices and massive infrastructure investments in return for long-term concessions for key resources. There are several well-documented deals on the continent – including a recent $2.5bn tie-up with Britain’s Tullow Oil in Uganda and off-shore production in Angola and Nigeria. And the positive impact is evident in spanking new infrastructure including hospitals, ports, and road and rail links being built with the influx of Chinese money.

But China is also involved in some of Africa’s more controversial countries. It came in for widespread criticism in 2008 for arms sales to war-torn Sudan, a major trade partner, and its alleged refusal to help resolve the humanitarian crisis in Darfur. It has also been accused of paying multimillion-dollar backhanders in return for African leaders repudiating Taiwan at the UN, although nothing has ever been proved. And because the majority of the deals are done on a government-to-government basis, there is no way to be clear on the extent of the relationships.

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Iraq increases oil reserves by 24%

By: BBC News

Iraq has raised the level of the oil reserves it claims to own by 24% in its first revision since Saddam Hussein fell from power.

The country has 143.1bn barrels of known and extractable oil, up from the 115bn barrels previously estimated.

If correct, the revision means that Iraq now has bigger oil reserves than its neighbor Iran.

Under Saddam Hussein, sanctions and political isolation meant little new exploratory work was undertaken.

However, since he was toppled in 2003, Iraq has issued two rounds of international oil licenses, and launched a big step-up in exploration efforts in the last two years.
Oil dependence

Announcing the new figures, the Iraqi oil minister, Hussein al-Shahristani, said he expected “other increases of even these fixed reserves” as further exploration yields more results.

“This is fairly significant,” says David Hunter, analyst at M&C Energy Group. “You have to bear in mind that 80% of the Iraqi economy is based on oil.”

The Iraqi oil minister also said that his country would now officially inform the Organization of Petroleum Exporting Countries (Opec) of its findings, so that the new reserves figure can obtain international recognition.

“There may be a political angle here,” says Mr Hunter, who suggests that Iraq may be pushing for a bigger share of Opec’s oil production.

Opec, which controls 40% of global production, sets limits on the amount of oil its members should produce, in order to control the oil price.
Lacking infrastructure

However, Iraq is currently exempted from Opec’s system of quotas, while it struggles to rebuild its oil industry.

Iraq’s oil production is only about 2.5 million barrels per day.

Opec is not expected to reimpose a quota on Iraq, until it has achieved output of about four million barrels – equivalent to neighboring Iran.

“Oil production took a huge hit because of the conflict, and then the insurgency,” notes Mr Hunter.

“The problems haven’t gone away with respect to the security issues and getting the stuff out of the ground.”

But Mr Hunter notes that a recent IMF report was quite positive on how investment in the country is fairing.

Iraq aims to increase its oil exports to 10-12 million barrels per day in the next five to 10 years, but this will require sustained investment in infrastructure to extract and transport the crude.
Biggest oilfield

The new proven reserves figure excludes oil located in the autonomous province of Kurdistan in the north of the country, according to the oil minister.

“The Kurdish regional government did not supply us with the latest developments of their activities,” complained Mr al-Shahristani.

“We are surprised that they supply oil companies with this information, but do not inform the oil ministry or the federal government.”

The reserves are mainly located in the Shia-dominated south of the country. Iraq’s biggest oilfield – West Qurna – is the world’s second largest, with 43bn barrels, according to the oil minister.

He said that a further 33.5 billion barrels of oil are known to exist, but are unrecoverable.
League table

If confirmed by Opec, the proven reserves would put Iraq ahead of Iran, but still in fourth place globally.

However, the reserves of second-place Venezuela and third-place Canada rely on unconventional oil sources, such as tar sands – almost exclusively so in Canada’s case.

Tar sands are only economical to extract at a high oil price.

Moreover, some sources put Venezuela’s oil reserves much lower than the 211 billion barrels stated by Opec.

First place is held by Saudi Arabia, with 264 billion barrels.

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Iraqi oil reserves estimated at 143B barrels

By: Cable News Network

Iraq’s estimated oil reserves have grown by nearly 25 percent, the oil ministry announced Monday.

“Iraq’s oil reserves which are extractable are 143.1 billion barrels,” said Hussein al-Shahristani, Iraq’s oil minister, based on data provided by Organization of Petroleum Exporting Countries.

The OPEC figures are about 28 billion barrels higher than previous estimates.

At $81 a barrel, about what oil was trading at early Monday, the added reserves would be worth about $2.27 trillion.

About 70 percent of all reserves are concentrated in Iraq’s southern oil fields, with 20 percent in the north and 9 percent in the country’s center.
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10/05/10

* Egypt president warns of ‘global terror’ if Mideast peace talks fail Egyptian President Hosni Mubarak has warned that a failure in Israel-Palestinian peace negotiations would lead to “violence and terrorism” across the world.

* Counter-terrorism officials: More than 100 ‘dangerous Islamists’ in Europe Hundreds of “dangerous Islamists radicals” are suspected to be based around Europe.

* Most PA Arabs Back Recent Murder of Israeli Civilians A majority of Palestinian Authority Arabs supported a recent murderous terror attack against Israeli civilians.

* CBS Poll: Israel Can’t Count on US Public If Iran Attacks Israel would find it itself without widespread support from the American public for United States reprisals against Iran if Tehran attacks the Jewish State.

* Turkey invited China to join NATO air exercise after U.S. withdrew China was secretly allowed to participate in a Turkish-sponsored combat air exercise reserved for NATO allies.

* Coding of Virus Attacking Iran May Refer to Queen Esther Iranian Intelligence Minister Heider Moslehi said Sunday that his country is under cyber attack, and blamed the United States and Israel.

* Europe pressures China as fears grow of forex ‘war’ Europe piled pressure on China on Tuesday to let the yuan rise in value, as leaders locked horns with Asian giants and fears rose of a global “war” on currency exchanges.

* Chief scientist who questioned evolution theory fired The Education Ministry’s chief scientist, Dr. Gavriel Avital, was dismissed on Monday following a scandal-filled trial period of less than a year.

* The iPhone’s ‘Israeli Embassy’ After years of not knowing how to handle it, the Israeli government has finally “gotten” tech.

* NASA: Collaboration with Saudis a ‘cornerstone’ of U.S. policy Saudi Arabia and the United States have agreed to expand space cooperation.

10/04/10

* Mass European Rally for Israel A mass rally-demonstration entitled “For the truth, for Israel” will be held in Rome this Thursday.

* Iraq increases oil reserves by 24% Iraq has raised the level of the oil reserves it claims to own by 24% in its first revision since Saddam Hussein fell from power.

* Netanyahu: Stop Picking on Settlers; They Deserve a Normal Life Prime Minister Binyamin Netanyahu voiced support for one of the most viciously maligned populations in the world – the Jews who live in Judea and Samaria.

* Iraq’s Sunni-backed bloc united against al-Maliki A Sunni-backed bloc that came first in elections seven months ago is united against the bid by Shiite Prime Minister Nouri al-Maliki to remain in office.

* Ex-Moscow Mayor Mocks Russian Democracy, Vows to Fight Yury Luzhkov, whom President Dmitry Medvedev fired as Moscow mayor last week, disparaged the state of democracy in Russia.

* IDF Chief of Staff Visits Bethlehem IDF Chief of Staff Gabi Asheknazi visited the Palestinian Authority-controlled city of Bethlehem on Sunday and met with senior commanders of the PA armed police forces.

* Muslim Journalist: Jerusalem Arabs Prefer Israeli Sovereignty Jerusalem’s Arab population prefers Israeli sovereignty to the prospect of living under Palestinian Authority rule.

* Japan joins US, UK in issuing Europe travel terror alert In blow to fragile European tourism, Foreign Ministry in Tokyo warns citizens to be cautious in public due to possible terror attack by al-Qaida.

* Behind the Crisis in Obama’s Middle East Peace Effort US diplomats scurried around Middle Eastern capitals over the weekend as President Barack Obama’s efforts to broker a Middle East peace agreement risked collapse.

* Lebanese See Ahmadinejad’s Visit as Jab at ‘Peace’ Talks Mahmoud Ahmadinejad is expected to make his first official visit to Lebanon as Iranian President on Wednesday, October 13.

10/02/10

* Palestinians say no peace talks without settlement curbs Israel must halt settlement building on occupied land if peace talks are to resume.

* Assad, Ahmadinejad: Israel’s actions prove it doesn’t want peace The leaders of Iran and Syria, during a meeting in Tehran Saturday, expressed hope of expanding the anti-Israeli bloc in the region.

* Yesha Council chair: Obama’s offer – a poisonous pill One week after the settlement movement marked the end of the West Bank construction freeze, the movement on Saturday commended Prime Minister Benjamin Netanyahu refusal to compromise on the matter.

* Assad: Peace talks boost Obama’s image Syrian President Bashar Assad said Saturday that peace talks between Israel and the Palestinians are aimed at bolstering Obama’s political image.

* Iraq breaks record for time taken to form a government Political parties in Iraq have broken the world record for the amount of time taken to form a new government.

* Fears of Chinese land grab as Beijing’s billions buy up resources China is pouring another $7bn (£4.4bn) into Brazil’s oil industry.

* Israeli Arab MK: Racism in Israel has reached frightening levels Some 6,000 Israeli Arabs marched Friday from the Galilee town of Kfar Kanna.

* Iran: We’ve learned how to fight Stuxnet computer worm Iran’s intelligence minister said the country has learned how to fight off a complex computer worm.

* Security and Defense: ‘The air force of the ground forces’ The Artillery Corps is gunning for a key role in any future conflict by becoming a force that relies much more on precision-strike capabilities.

* Osama bin Laden ordered Mumbai-style attack on Britain US intelligence agencies have said that Al-Qaeda leader Osama bin Laden had personally ordered Mumbai-style commando attacks on Britain.