Northern Rock scramble

The turmoil in global banking hit the streets of Britain on Friday as thousands of Northern Rock customers queued up to withdraw their savings from the UK mortgage lender after it was rescued by the Bank of England.

As regulators and politicians called for calm, Northern Rock – Britain’s fifth-biggest mortgage lender – scrambled to contain the fallout after it became the first British bank in decades to be bailed out by regulators. One person close to the situation said customers had withdrawn about $2bn Friday but Northern Rock declined to comment on the figure, which would amount to 4 per cent of its deposit base.

The rescue demonstrates the risks from a decade of financial innovation in the capital markets, which allowed a small regional lender to wield financial clout far greater than its network of 76 branches would suggest.

It also shows how the turmoil in the financial system that resulted from excessive lending to Americans with patchy credit histories triggered the failure of a bank with no direct links to the US mortgage market.

Shares in Northern Rock plunged more than 30 per cent as analysts slashed their earnings forecasts for the bank. The news also dragged down share prices for other UK banks such as Alliance & Leicester, HBOS and Barclays.

The FTSE 100 saw sharp falls until US markets opened and helped soften the bearish tone. As the day wore on, sentiment soured again. The list of leading UK shares ended 74.6 points lower, almost 1.2 per cent down at 6,289.3. The FTSE Eurofirst 300 was 16.2 points lower at 1508.1, 1.1 per cent down.

In the US, equity markets pared early losses after economic data showed retail sales, excluding sales of vehicles, fell sharply in August. The data cemented investors’ expectations of at least a quarter-point interest rate cut from the Federal Reserve when policymakers meet on Tuesday.

The commerce department reported retail sales fell 0.4 per cent in August, excluding vehicle sales, compared with forecasts of a 0.1 per cent rise, and a 0.7 per cent increase in retail sales in July. The S&P500 was down 0.1 per cent to 1,482.45 by midday in New York. The Dow Jones Industrial Average of blue-chip stocks fell 0.01 per cent to 13,423.66.

Financials were among the worst performers, after Merrill Lynch, the world’s largest brokerage, warned that shaky credit markets had forced it to adjust the value of securities linked to risky subprime mortgages.

Concern over Northern Rock and the ability of UK banks to maintain new mortgage lending at attractive rates added to concerns about the housing market and the economy in general.

Under the terms of the bail-out, the Bank of England will provide an open-ended facility to Northern Rock, allowing it to access liquidity by posting mortgages or mortgage-backed securities as collateral. The rescue – finalised yesterday after days of negotiations involving the Financial Services Authority and the UK Treasury – came just two days after Mervyn King, governor of the Bank, insisted it would not intervene to bail out the markets.

According to people familiar with the matter, several banks considered buying Northern Rock. However, a deal was undermined by a shortage of liquidity and uncertainty about Northern Rock’s value. Adam Applegarth, Northern Rock’s chief executive, said the bank was not in talks with a buyer.

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Chinese to equip Nigerian schools

The Chinese Embassy on Wednesday in Abuja said it was prepared to equip selected secondary schools in Nigeria with facilities to aid the teaching and learning of Chinese language.

The embassy’s Cultural Attache, Mr Jiang Weiming, announced the decision at a ceremony marking the commencement of an education and cultural collaboration between Nigeria and China.

Weiming said through the collaboration, the embassy would equip and establish Chinese classes and train teachers in the chosen schools.

He also said the understanding of the language would improve the existing relationship between the two countries as well as enhance the appreciation of the Chinese culture by Nigerians.

In a remark at the ceremony, FCTA Education Secretary, Mrs Felicia Olajide, said it was gratifying that both countries were exploring the possibilities of building stronger ties through education and culture.

Olajide said that the potential areas of cooperation transcended culture and education. “Industrial development can also be explored for the benefit of both nations,’’ she said.

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Centcom chief derided Petraeus

In sharp contrast to the lionisation of Gen. David Petraeus by members of the U.S. Congress during his testimony this week, Petraeus’s superior, Admiral William Fallon, chief of the Central Command (CENTCOM), derided Petraeus as a sycophant during their first meeting in Baghdad last March, according to Pentagon sources familiar with reports of the meeting.

Fallon told Petraeus that he considered him to be "an ass-kissing little chickenshit" and added, "I hate people like that", the sources say. That remark reportedly came after Petraeus began the meeting by making remarks that Fallon interpreted as trying to ingratiate himself with a superior.

That extraordinarily contentious start of Fallon’s mission to Baghdad led to more meetings marked by acute tension between the two commanders. Fallon went on develop his own alternative to Petraeus’s recommendation for continued high levels of U.S. troops in Iraq during the summer.

The enmity between the two commanders became public knowledge when the Washington Post reported Sep. 9 on intense conflict within the administration over Iraq. The story quoted a senior official as saying that referring to "bad relations" between them is "the understatement of the century".

Fallon’s derision toward Petraeus reflected both the CENTCOM commander’s personal distaste for Petraeus’s style of operating and their fundamental policy differences over Iraq, according to the sources.

The policy context of Fallon’s extraordinarily abrasive treatment of his subordinate was Petraeus’s agreement in February to serve as front man for the George W. Bush administration’s effort to sell its policy of increasing U.S. troop strength in Iraq to Congress.

In a highly unusual political role for an officer who had not yet taken command of a war, Petraeus was installed in the office of Minority Leader Mitch McConnell, a Republican from Kentucky, in early February just before the Senate debated Bush’s troop increase. According to a report in The Washington Post Feb. 7, senators were then approached on the floor and invited to go McConnell’s office to hear Petraeus make the case for the surge policy.

Fallon was strongly opposed to Petraeus’s role as pitch man for the surge policy in Iraq adopted by Bush in December as putting his own interests ahead of a sound military posture in the Middle East and Southwest Asia — the area for which Fallon’s CENTCOM is responsible.

The CENTCOM commander believed the United States should be withdrawing troops from Iraq urgently, largely because he saw greater dangers elsewhere in the region. "He is very focused on Pakistan," said a source familiar with Fallon’s thinking, "and trying to maintain a difficult status quo with Iran."

By the time Fallon took command of CENTCOM in March, Pakistan had become the main safe haven for Osama bin Laden’s al Qaeda to plan and carry out its worldwide operations, as well as being an extremely unstable state with both nuclear weapons and the world’s largest population of Islamic extremists.

Plans for continued high troop levels in Iraq would leave no troops available for other contingencies in the region.

Fallon was reported by the New York Times to have been determined to achieve results "as soon as possible". The notion of a long war, in contrast, seemed to connote an extended conflict in which Iraq was but a chapter.

Fallon also expressed great scepticism about the basic assumption underlying the surge strategy, which was that it could pave the way for political reconciliation in Iraq. In the lead story Sep. 9, The Washington Post quoted a "senior administration official" as saying that Fallon had been "saying from Day One, ‘This isn’t working.’ "

One of Fallon’s first moves upon taking command of CENTCOM was to order his subordinates to avoid the term "long war" — a phrase Bush and Secretary of Defence Robert M. Gates had used to describe the fight against terrorism.

Fallon was signaling his unhappiness with the policy of U.S. occupation of Iraq for an indeterminate period. Military sources explained that Fallon was concerned that the concept of a long war would alienate Middle East publics by suggesting that U.S. troops would remain in the region indefinitely.

During the summer, according to the Post Sep. 9 report, Fallon began to develop his own plans for redefine the U.S. mission in Iraq, including a plan for withdrawal of three-quarters of the U.S. troop strength by the end of 2009.

The conflict between Fallon and Petraeus over Iraq came to a head in early September. According to the Post story, Fallon expressed views on Iraq that were sharply at odds with those of Petraeus in a three-way conversation with Bush on Iraq the previous weekend. Petraeus argued for keeping as many troops in Iraq for as long as possible to cement any security progress, but Fallon argued that a strategic withdrawal from Iraq was necessary to have sufficient forces to deal with other potential threats in the region.

Fallon’s presentation to Bush of the case against Petraeus’s recommendation for keeping troop levels in Iraq at the highest possible level just before Petraeus was to go public with his recommendations was another sign that Petraeus’s role as chief spokesperson for the surge policy has created a deep rift between him and the nation’s highest military leaders. Bush presumably would not have chosen to invite an opponent of the surge policy to make such a presentation without lobbying by the top brass.

Fallon had a "visceral distaste" for what he regarded as Petraeus’s sycophantic behaviour in general, which had deeper institutional roots, according to a military source familiar with his thinking.

Fallon is a veteran of 35 years in the Navy, operating in an institutional culture in which an officer is expected to make enemies in the process of advancement. "If you are Navy captain and don’t have two or three enemies, you’re not doing your job," says the source.

Fallon acquired a reputation for a willingness to stand up to powerful figures during his tenure as commander in chief of the Pacific Command from February 2005 to March 2007. He pushed hard for a conciliatory line toward and China, which put him in conflict with senior military and civilian officials with a vested interest in pointing to China as a future rival and threat.

He demonstrated his independence from the White House when he refused in February to go along with a proposal to send a third naval carrier task force to the Persian Gulf, as reported by IPS in May. Fallon questioned the military necessity for the move, which would have signaled to Iran a readiness to go to war. Fallon also privately vowed that there would be no war against Iran on his watch, implying that he would quit rather than accept such a policy.

A crucial element of Petraeus’s path of advancement in the Army, on the other hand, was through serving as an aide to senior generals. He was assistant executive officer to the Army Chief of Staff, Gen. Carl Vuono, and later executive assistant to the chairman of the Joint Chiefs, Gen. Henry Shelton. His experience taught him that cultivating senior officers is the key to success.

The contrasting styles of the two men converged with their conflict over Iraq to produce one of the most intense clashes between U.S. military leaders in recent history.

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Germany’s actions leaves US ‘no choice’

A recent decision by German officials to withhold support for any new sanctions against Iran has pushed a broad spectrum of officials in Washington to develop potential scenarios for a military attack on the Islamic regime, FOX News confirmed Tuesday.

Germany — a pivotal player among three European nations to rein in Iran’s nuclear program over the last two-and-a-half years through a mixture of diplomacy and sanctions supported by the United States — notified its allies last week that the government of Chancellor Angela Merkel refuses to support the imposition of any further sanctions against Iran that could be imposed by the U.N. Security Council.

The announcement was made at a meeting in Berlin that brought German officials together with Iran desk officers from the five member states of the Security Council. It stunned the room, according to one of several Bush administration and foreign government sources who spoke to FOX News, and left most Bush administration principals concluding that sanctions are dead.

The Germans voiced concern about the damaging effects any further sanctions on Iran would have on the German economy — and also, according to diplomats from other countries, gave the distinct impression that they would privately welcome, while publicly protesting, an American bombing campaign against Iran’s nuclear facilities.

Germany’s withdrawal from the allied diplomatic offensive is the latest consensus across relevant U.S. agencies and offices, including the State Department, the National Security Council and the offices of the president and vice president. Under Secretary of State for Political Affairs Nicholas Burns, the most ardent proponent of a diplomatic resolution to the problem of Iran’s nuclear ambitions, has had his chance on the Iranian account and come up empty.

Political and military officers, as well as weapons of mass destruction specialists at the State Department, are now advising Secretary of State Condoleezza Rice that the diplomatic approach favored by Burns has failed and the administration must actively prepare for military intervention of some kind. Among those advising Rice along these lines are John Rood, the assistant secretary for the Bureau of International Security and Nonproliferation; and a number of Mideast experts, including Ambassador James Jeffrey, deputy White House national security adviser under Stephen Hadley and formerly the principal deputy assistant secretary for Near Eastern affairs.

Consequently, according to a well-placed Bush administration source, "everyone in town" is now participating in a broad discussion about the costs and benefits of military action against Iran, with the likely timeframe for any such course of action being over the next eight to 10 months, after the presidential primaries have probably been decided, but well before the November 2008 elections.

The discussions are now focused on two basic options: less invasive scenarios under which the U.S. might blockade Iranian imports of gasoline or exports of oil, actions generally thought to exact too high a cost on the Iranian people but not enough on the regime in Tehran; and full-scale aerial bombardment.

On the latter course, active consideration is being given as to how long it would take to degrade Iranian air defenses before American air superiority could be established and U.S. fighter jets could then begin a systematic attack on Iran’s known nuclear targets.

Most relevant parties have concluded such a comprehensive attack plan would require at least a week of sustained bombing runs, and would at best set the Iranian nuclear program back a number of years — but not destroy it forever. Other considerations include the likelihood of Iranian reprisals against Tel Aviv and other Israeli population centers; and the effects on American troops in Iraq. There, officials have concluded that the Iranians are unlikely to do much more damage than they already have been able to inflict through their supply of explosives and training of insurgents in Iraq.

The Bush administration "has just about had it with Iran," said one foreign diplomat. "They tried the diplomatic process. China is now obstructing them at the U.N. Security Council and the Russians are tucking themselves behind them.

"The Germans are wobbling …There are a number of people in the administration who do not want their legacy to be leaving behind an Iran that is nuclear armed, so they are looking at what are the alternatives? They are looking at other options," the diplomat said.

Vice President Cheney and his aides are said to be enjoying a bit of "schadenfreude" at the expense of Burns. A source described Cheney’s office as effectively gloating to Burns and Rice, "We told you so. (The Iranians) are not containable diplomatically."

The next shoe to drop will be when Rice and President Bush make a final decision about whether to designate the Iranian Revolutionary Guard Corps (IRGC) and/or its lethal subset, the Quds Force, as a terrorist entity or entities. FOX News reported in June that such a move is under consideration.

Sources say news leaks about the prospective designation greatly worried European governments and private sector firms, which could theoretically face prosecution in American courts if such measures became law and these entities continued to do business with IRGC and its multiple financial subsidiaries.

If the Bush administration moves forward with such a designation, sources said, it would be an indication that Rice agrees that Burns’ approach has failed. Designation of such a large Iranian military institution as a terrorist entity would also be seen, sources said, as laying the groundwork for a public justification of American military action.

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Red Storm Rising

A growing band of civilian units inside China is writing malicous code and training to launch cyberstrikes into enemy systems.
And for many of these units, the first enemy is the U.S. Defense Department.

Pentagon officials say there are more than three million daily scans of the Global Information Grid, the Defense Department’s main network artery, and that the United States and China are the top two originating countries.

“China has downloaded 10 to 20 terabytes of data from the NIPRNet (DOD’s Non-Classified IP Router Network),” said Maj. Gen. William Lord, director of information, services and integration in the Air Force’s Office of Warfighting Integration and Chief Information Officer, during the recent Air Force IT Conference in Montgomery, Ala.

“They’re looking for your identity so they can get into the network as you,” said Lord, adding that Chinese hackers had yet to penetrate DOD’s secret, classified network. “There is a nation-state threat by the Chinese.”

People’s Liberation Army writings in recent years have called for the use of all means necessary, including—or particularly—information warfare, to support or advance their nation’s interests.

To China’s PLA, attacks against DOD systems would be the first salvo in a long-term strategy to cripple the U.S. military’s ability to communicate and deliver precision weapons.

A big part of the strategy is the PLA’s civilian units—IT engineers drawn from universities, institutes and corporations. The PLA views these militias as its trump card and a way of asserting virtual dominance to paralyze the United States and other potential adversaries.

The U.S. military is familiar with China’s approach. In fact, its own strategy in cyberspace is similar to the PLA’s—the countries’ doctrines and strategies almost mirror one another.

It is unclear how aggressive a posture the United States is taking when it comes to defending against cyberattacks. But DOD certainly is paying attention to China’s offensive aggression, and even considering offensive actions of its own, Lord said. “But the rules of engagement have to change before we’re fully engaged in cyberspace.”

The Pentagon has made net-centricity the core of its transformation into a modern military force, and it seeks ways to create a vast web of information accessible at every level of the warfighting operation, from ground troops to pilots, command staffs to logistics operations.

China, recognizing America’s dominance in C4—command, control, communications and computers—wants to disrupt or even remove that advantage, experts have said.

If the armies of bygone days traveled on their stomachs, future armies will travel on invisible threads of data.

But the concern should not be limited to DOD. All federal agencies have to be aware of the Chinese view of information warfare.

Chinese military writings make it clear that in cyberspace there are no boundaries between military and civilian targets. If crashing a country’s financial system through computer attack will paralyze the foe, that’s all part of the new face of war.

If DOD—the most security-conscious of all federal agencies—can be attacked, can have information stolen, then other agencies must seem like low-hanging fruit by comparison.

China is not the only country targeting DOD systems. John Thompson, chairman and chief executive officer of Symantec Corp. of Cupertino, Calif., told the audience at the Air Force conference: “There are at least 20 nations that have their own cyberattack programs.” He said there is no way to know how many terrorist organizations have launched similar efforts.

But China—the largest country by population at 1.3 billion, third in area, and among the fastest-growing economically—gets the most attention, in part because it is the single largest source of cheap goods sold in the United States, including technology.

While Defense and Homeland Security department officials are reluctant to make pointed accusations, events in cyberspace show how the two countries are jockeying for position in preparation for “virtual” conflict.

From at least 2003 to 2005, a series of coordinated cyberattacks hit U.S. military, government and contractor Web sites with abandon. The systematic intrusions, collectively dubbed Titan Rain, attacked hundreds of government computers.

Time magazine reported last year that the incursions originated on a local network that connected to three routers in Guangdong Province, though U.S. officials still offer only generic comments about this and other published reports about Titan Rain.

“What I can say about this is [that] we have seen some attempts at access to our network. We’ve seen some of that from China,” said Air Force Lt. Gen. Robert Kehler, deputy commander of the U.S. Strategic Command.
   
“We are seeing attacks that traversed through China. I can’t say with any real assurance that that’s where they start,” added Navy Rear Adm. Elizabeth Hight, deputy director of DOD’s Joint Task Force for Global Network Operations.

A military attache at the Chinese Embassy in Washington insisted that, to his knowledge, Beijing “does not want” to use hackers to attack the United States.

“The official answer is, I have no idea about this,” said Sr. Col. Wang in a brief telephone interview.

The fallout from this cybercampaign continues among other agencies.

In June, the Energy Department revealed that names and other personal information on more than 1,500 employees of the National Nuclear Security Administration had been stolen in a network incursion that took place more than two years ago. NNSA didn’t discover the breach for more than a year after it happened.

Officials would not confirm for the record that the data breach was part of Titan Rain, but Alan Paller, research director for the SANS Institute of Bethesda, Md., called it “an example of the kind of attack and extraction that [has been] going on for the last 2 1⁄2 years.”

Also in June, hackers broke into State Department unclassified networks. In this incident, investigators believe the hackers, who they say launched the attacks from East Asia, stole sensitive information and passwords and planted back doors in unclassified government computers to allow them to return at will, according to a CNN story.

“Any average computer geek knows about spyware, viruses and the countless other hardware and software devices and capabilities that could jeopardize the security of our networks and the information they contain,” Michael Wessel, a commissioner with the U.S.-China Economic and Security Review Commission, said in May. “These, of course, are only the tip of the iceberg.”

And DOD is not alone in trying to keep out hackers from China and other nation states.

“On the commercial side, Internet usage and broadband adoption from China has grown,” said Betsy Appleby, vice president of the public sector at Akamai Technologies of Cambridge, Mass., and former Net-Centric Enterprise Services program director at the Defense Information Systems Agency. “Specifically considering that the Chinese government is pretty much in control, you can do the math and figure it out.”

China has existed as an identifiable society for more than 6,000 years. Its name for itself, in Chinese, is Jhongguo, or Middle Kingdom, sometimes characterized as the land below heaven but above the rest of the world.

The country has been under Communist rule for less than 60 years. The millennia-old expectation that China rules, or should rule, “all under heaven” is a permanent subtext in the country’s psyche, many Sinologists believe.

This gives the Chinese great patience; its leaders may take a decades-long view of a problem and its possible solutions.

So what the United States characterizes as attacks on its military networks could, to the Chinese, be in-depth reconnaissance.

“If you were an adversary, and you wanted to assess somebody’s strengths and weaknesses, one of the ways to do it would be to probe their defenses, so you would want to take a look at their computer situation,” said John Stack, enterprise architecture and security solutions manager for Northrop Grumman Information Technology’s Defense Group of McLean, Va.

For more than a decade, the Chinese military has observed how DOD is modernizing its troops and tactics. The first Gulf War was considered “a watershed event” in terms of how the Chinese viewed future warfare, according to the Defense Department’s 2004 Annual Report on The Military Power of the People’s Republic of China.

“The PLA noted that the rapid defeat of Iraqi forces—which resembled the PLA at that time in many ways—revealed how backward and vulnerable China would be in a modern war,” the report said. “The Gulf War also spurred internal PLA debate on the implications of an emergent revolution in military affairs, in which the conflict became a point of reference for efforts to build capabilities in command, control, communications, computers, intelligence, surveillance and reconnaissance, information warfare, air defense, precision strike and logistics.”

“There have been Chinese writings for over a decade regarding the People’s Liberation Army studying cyberwarfare and evolving concepts toward development of information warfare doctrine,” said a Defense Intelligence Agency spokesman.

Perhaps one of the most important milestones was the 1999 publication in China of Unrestricted Warfare, a book authored by two colonels in the PLA, that was generated by the PLA’s observations on Desert Storm. The CIA’s Foreign Broadcast Information Service obtained and translated it, and it can now be found on the Internet.

“The new principles of war are no longer ‘using armed force to compel the enemy to submit to one’s will,’ but rather are ‘using all means, including armed force or nonarmed force, military and nonmilitary, and lethal and nonlethal means to compel the enemy to accept one’s interests,’ ” the colonels wrote.

The book argues that the spread of IT and access to the Internet has removed traditional boundaries and expanded the arena beyond traditional warfighters.

“[T]his kind of war means that all means will be in readiness, that information will be omnipresent, and the battlefield will be everywhere,” the colonels wrote. It “also means that many of the current principles of combat will be modified, and even that the rules of war may need to be rewritten.”

The DIA spokesman said a Chinese major general recently described information warfare “as containing six elements in its application: operational security, military deception, psychological warfare, electronic warfare, computer network warfare and physical destruction.”

The PLA’s new information warfare focus illustrates a growing recognition that cyberattacks launched against the U.S. military could give China a decisive advantage in the event of a crisis.

One such crisis scenario, according to people who have studied the issue, would be the prospect of American intervention to aid Taiwan in the event of an attack from China. A 1979 law requires the United States to defend the island nation from attack.

Chinese leaders have a conundrum of their own—how the People’s Liberation Army can move against Taiwan but forestall U.S. action long enough to make it a fait accompli.

“For the PLA, using [information warfare] against U.S. information systems to degrade or even delay a deployment of forces to Taiwan offers an attractive asymetric strategy,” wrote James Mulvenon in 1998. Mulvenon is deputy director for advanced analysis at the Defense Group Inc.’s Center for Intelligence Research and Analysis in Washington, and widely regarded as one of the foremost authorities on the Chinese military’s use of IT.

“American forces are highly information-dependent and rely heavily on precisely coordinated logistics networks,” he wrote. “If PLA information operators … were able to hack or crash these systems, thereby delaying the arrival of a U.S. carrier battle group to the theater, while simultaneously carrying out a coordinated campaign of short-range ballistic missile attacks, ‘fifth column’ and [information warfare] attacks against Taiwanese critical infrastructure, then Taipei might be quickly brought to its knees and forced to capitulate to Beijing.”

This is the role of information warfare, many experts now believe: Cyberattacks on military C4 systems will amplify the effects of kinetic weapons, to bring matters to a swift conclusion with a minimum of bloodshed.

Rear Adm. Hight, of JTF-GNO, said DOD is taking note of the incursions and data extractions, and looking at the department’s defensive measures.

“Our daily efforts are all about assessing and mitigating risks. We are students of Sun Tzu and other philosophical thinkers who have a wonderful way of capturing warfighting concepts,” Hight said. “The key to this type of warfare is just what you might think of as traditional warfare. You can’t forget the foundations. You can’t forget the basics. The cyberworld relies, in many cases, on foundational concepts in terms of how you protect it.”

America’s standing as the current sole superpower is a source of internal conflict for Chinese policies, said James Gilmore III, former governor of Virginia and now with Kelley Drye Collier Shannon’s Homeland Security Practice Group, a Washington law firm. He was chairman of the Advisory Panel to Access Domestic Response Capabilities for Terrorism Involving Weapons of Mass Destruction, created by the Clinton administration in 1999.

“An adversary or partner of the U.S. … They are prepared to be either one,” Gilmore said.

Should its leaders feel it is in their interests, China would seek to “disrupt the DOD’s capacity to communicate overseas and maneuver their people,” he added.

Cortez Cooper III, director of East Asia Studies with Hicks and Associates Inc., a defense and national security consulting company in McLean, Va., told the U.S.- China Commission that the Chinese understand their military focus must use niche capabilities to counter the moves of a technologically superior adversary that might challenge their interests.

To address the cybersecurity threat, DOD and intelligence officials are playing both offensive and defensive roles.

Pentagon officials acknowledge DOD is developing capabilities to deny an adversary the use of its own computer systems to attack U.S. computer networks.

JTF-GNO is tasked with operating and defending the GIG, while the National Security Agency has the responsibility for the “nondefensive parts of operations in cyberspace,” according to Army Maj. Gen. Dennis Moran, vice director for command, control, communications and computer systems for the Joint Chiefs of Staff.

As “part of a good defense, and I don’t care if you’re defending a forward operating base in a country, or no matter what it is physically, you do a very good analysis of what your vulnerabilities are. And there have been analyses within the department to determine what we need to protect and how should we prioritize our resources,” Moran said.

“The resources required to provide that defense are being allocated against those priorities,” Moran said. “Now, I’m certainly not going to talk about those in detail, because that would certainly be an opportunity to tell someone these are what we are concerned about.”

But Moran did talk about the protocols DOD has been working on to improve its network security posture.

“If you look at the whole net-centric strategy that we have in the DOD, the focus is, first of all, identify your data, then appropriately tag that data so it can be made available to other people who are authorized users,” Moran said. “We are putting in place a service-oriented architecture across the GIG which is able to find, locate and securely move that data to an application. Security is a critical tenet to this whole architecture, because if you’re doing business one way and (another agency) is doing business another way, we are creating seams that an intruder can take advantage of.”

Kehler said DOD officials also are mandating full public-key infrastructure implementation for user authentication, requiring automated patch management and looking in the mirror to increase the department’s defensive position.

“We’re looking at ourselves pretty hard to understand where our vulnerabilities are,” Kehler said. “Sometimes we find that our worst enemy in protecting our information is ourselves. In order to make things better faster, sometimes our people leave doorways open into our network.”

The key to closing those doorways is a layered defense-in-depth strategy, Hight said.

“We don’t have a single approach. We’re trying to protect the house by locking the doors, locking the windows, making sure wires that come in and out of the house are protected,” Hight said. “Our organization is very transient, so as we get systems administrators moving around the world, we want to make sure they know they have a consistent and well-defined set of procedures that they adhere to and provide consistent protections for the network.”

To accomplish this, JTF-GNO is looking at the best way to train Defense employees on cybersecurity mechanisms, what types of protective software to employ and how to standardize processes.

Additionally, Hight said, the organization soon will release a Network Operations Concept of Operations (Netops/Conops) document, which will detail for military personnel how to secure their systems.

Hight said the document describes three basic concepts that make up the department’s larger doctrinal view:

    * Ensuring systems and networks that deliver information are available
    * Ensuring information can move freely from one point to another
    * Ensuring information is protected at the right level.

“When you go to Amazon.com, you can see what Amazon chooses for you to see, their book titles and other information. You can’t see Amazon’s financial information, because they mask that from you,” Hight said. “So the protection of information might be something as simple as where you put that information and [whom] you make that available to.”

The exploitation of network weaknesses doesn’t mean that more traditional forms of espionage targeting cyberassets can be overlooked. For instance, in August 2001, U.S. Customs officers arrested two men for trying to export military encryption technology to China.

What’s a real threat? Four months earlier, enraged Chinese hackers had defaced dozens of U.S. military Web sites following the collision of a U.S. surveillance plane and a Chinese fighter plane. The Chinese pilot died as a result of the accident. Is that kind of threat, whether from China or another country, real? John Hamre, president and chief executive officer of the Center for Strategic and International Studies, believes so. He served in the 1990s as comptroller, then deputy secretary of Defense.

“I was so deeply involved in cybersecurity issues when I was the deputy secretary, but have not been involved in these issues since,” he said. “I continue to believe that cyberthreats will overwhelmingly be from competent national state security elements, and that intelligence is the higher goal, not disruption.” Still, Donavan Lewis, chief of the Defense Intelligence Agency’s threat analysis division, wants the United States to think more about long-term trends.

“China has shifted its dependence away from the United States to [countries such as Malaysia and South Korea], while our dependence on them has grown,” he said during a Defense conference in Salt Lake City in May. “We’ve got to adjust our thinking, our calculus about how we put together a system of systems.”

He admits to being worried about the possibility that “subversive functionality could be embedded” in technology.

“The Defense acquisition community is not used to thinking of itself as part of computer security,” he said.

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Iran Asks Japan to Pay Yen

Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran’s central bank said it is reducing holdings of the U.S. dollar.

Iran wants yen-based transactions “for any/all of your forthcoming Iranian crude oil liftings,” according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments “effective immediately,” according to the letter, dated July 10 and obtained by Bloomberg News.

The yen rose on speculation for an increase in demand for the currency, the result of Japan’s annual 1.24 trillion yen ($10.1 billion) of oil imports from Iran. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency.

“What else can Japan do but to accept the request, once the oil producer sent its wish?” said Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo. “The tensions between the U.S. and Iran are escalating, and it’s Iran’s measure to hedge risk.”

A spokesman for Iran’s oil ministry in Tehran said he could neither confirm nor deny that the letter had been sent. Most Japanese oil refiners have until now used U.S. dollars to pay Iran for oil, said the spokesman, who declined to be identified by name because of government policy.

The yen advanced to 122.07 per dollar at 2:30 p.m. in New York, from 122.42 late yesterday.

Iran is cutting its U.S. dollar reserves to less than 20 percent of total foreign currency holdings, and will buy more euros and yen as tensions with the U.S. increase, Central Bank Governor Ebrahim Sheibany said on March 27.

The United Nations Security Council is preparing for another round of sanctions against Iran because of the nation’s nuclear research.

The Islamic republic, holder of the world’s second-largest oil and gas reserves, has refused to halt uranium enrichment that it says is for use in nuclear power plants to produce electricity. The U.S. says Iran seeks instead to develop an atomic bomb. Enriched uranium can be used to make nuclear fuel or build nuclear weapons.

Iran isn’t alone in wanting to drop the dollar for pricing oil. Russia has been examining plans to price the Urals oil export blend in rubles to curb currency risks. The nation plans to open the Energy Stock Exchange in St. Petersburg in the first half of next year to trade oil in rubles, UBS AG reported June 14.

Iran asked the refiners to use the yen exchange rate quoted at the Bank of Tokyo Mitsubishi UFJ on the date oil cargoes are loaded. The use of yen-based letters of credit for oil “has finally been approved” by the Iranian central bank and the NIOC, according to the letter, titled “New payment mechanism for Iranian Crude Oil Cargoes.”

Japan imported 1.59 million kiloliters of Iranian crude oil in May, the least since June 2006, according to government data.

Only Saudi Arabia and the United Arab Emirates are larger oil suppliers to Japan than Iran.

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Brown won’t attend “Mugabe circus’

Britain has warned fellow European Union nations that Prime Minister Gordon Brown will not attend a planned Europe-Africa summit if Zimbabwean leader Robert Mugabe does, diplomatic sources said on Saturday.

British Foreign Secretary David Miliband made London’s position clear on Friday during an informal meeting of EU foreign ministers in the northern Portuguese town of Viana do Castelo.

"He told them that the PM would not be there if Mugabe goes," a source close to the closed-door talks said.

Miliband contented himself on Saturday by saying: "I don’t think anyone wants to be part of a media circus in December," when the summit will be held in Lisbon.

"There is serious work to be done and that is what we are focussing on," he said before joining his fellow foreign ministers for a group photo.

"I think we all want a successful summit, but we are also very, very concerned about the situation in Zimbabwe," Miliband added, pointing out that the Zimbabwean currency had been devalued by 1 200% on Thursday.

A senior British official told Agence France-Presse that "it is difficult to imagine a scenario in which the British prime minister and other EU leaders will attend a summit at which Mugabe is present."

He added that Zimbabwe should nevertheless be represented at the meeting.

While Africa as a whole and Zimbabwe in particular have serious issues to discuss, such as poverty, climate change and security "none of them will be properly discussed if Mugabe rolls up and we have a Mugabe circus," the British official said.

He added that there were precedents for such cases, such as Burma’s involvement in the Association of South East Asian Nations (Asean) despite a bar on prime minister Than Shwe attending.

An EU official said there could be some room for manoeuvre on the problem.

"You know how it goes, you send a generic invitation to everyone and hope that there will be some kind of transport problem … The Africans know very well that it is in their interests that this summit takes place".

Portugal, which holds the EU’s rotating presidency, has said that it has no intention of discriminating against Mugabe.

"It is not up to Portugal, current head of the EU, to invite some people rather than others," Portugal’s Deputy Foreign Minister Joao Gomes Cravinho said at a Lusaka summit of Southern African leaders last month.

The 83-year-old Mugabe is officially barred from travelling to the 27 nations in the EU.

The issue has long hampered efforts to organise a second summit between the European Union and African states. The first was held in Cairo in 2000.

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China denies hacking

China on Tuesday rejected a report that hackers controlled by its military had successfully entered a Pentagon network, calling the claim a product of "Cold War" thinking.

The Financial Times, citing former and serving U.S. officials, said Chinese People’s Liberation Army hackers broke into a U.S. Defense Department network in June, taking data and prompting the shutdown of a system serving department secretary Robert Gates.

The report came a week after German Chancellor Angela Merkel raised similar claims that Chinese hackers had infected German government ministries with spying programs.

China deflected the German reports, and now it has flatly rejected the U.S. claims, as well as denying reports that Chinese-made weapons have been used by Taliban fighters in Afghanistan.

"The Chinese government has consistently opposed and vigorously attacked according to the law all Internet-wrecking crimes, including hacking," Foreign Ministry spokeswoman Jiang Yu said.

"Some people are making wild accusations against China … They are totally groundless and also reflect a Cold War mentality."

Beijing has devoted a large part of its rising defense budget to developing more advanced technology, including computer capabilities. But Jiang said her government was also the victim of computer attacks.

The Financial Times cited one source familiar with the event as saying there was a "very high level of confidence … trending towards total certainty" that the army was behind it.

It said hackers from various locations in China had spent several months trying to tap into the system before breaching its cyber defenses, forcing the Pentagon to shut down its network for more than a week.

U.S. President George W. Bush is scheduled to meet Chinese President Hu Jintao in Sydney while the two leaders are there for the APEC regional summit.

The FT quoted a former U.S. official as saying the PLA was now able to disrupt and even disable the Pentagon’s computer system.

"The PLA has demonstrated the ability to conduct attacks that disable our system … and the ability in a conflict situation to re-enter and disrupt on a very large scale," the former official told the newspaper.

The Financial Times reported that the Pentagon was investigating what data had been taken, and a source told the paper that most of it was probably unclassified.

Spokeswoman Jiang also rejected a BBC report that Chinese-made weapons have been used by Taliban fighters in Afghanistan.

London has complained to Beijing that the weapons were used in Taliban attacks on British and U.S. troops, the BBC reported, citing British officials.

"This accusation is groundless," Jiang said. "The Chinese government has always been prudent and responsible in its military exports."

China did not sell weapons to "non-state" entities, she said.

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India’s holocaust

A controversial new history of the Indian Mutiny, which broke out 150 years ago and is acknowledged to have been the greatest challenge to any European power in the 19th century, claims that the British pursued a murderous decade-long campaign to wipe out millions of people who dared rise up against them.

In War of Civilisations: India AD 1857, Amaresh Misra, a writer and historian based in Mumbai, argues that there was an "untold holocaust" which caused the deaths of almost 10 million people over 10 years beginning in 1857. Britain was then the world’s superpower but, says Misra, came perilously close to losing its most prized possession: India.

Conventional histories have counted only 100,000 Indian soldiers who were slaughtered in savage reprisals, but none have tallied the number of rebels and civilians killed by British forces desperate to impose order, claims Misra.

The author says he was surprised to find that the "balance book of history" could not say how many Indians were killed in the aftermath of 1857. This is remarkable, he says, given that in an age of empires, nothing less than the fate of the world hung in the balance.

"It was a holocaust, one where millions disappeared. It was a necessary holocaust in the British view because they thought the only way to win was to destroy entire populations in towns and villages. It was simple and brutal. Indians who stood in their way were killed. But its scale has been kept a secret," Misra told the Guardian.

His calculations rest on three principal sources. Two are records pertaining to the number of religious resistance fighters killed – either Islamic mujahideen or Hindu warrior ascetics committed to driving out the British.

The third source involves British labour force records, which show a drop in manpower of between a fifth and a third across vast swaths of India, which as one British official records was "on account of the undisputed display of British power, necessary during those terrible and wretched days – millions of wretches seemed to have died."

There is a macabre undercurrent in much of the correspondence. In one incident Misra recounts how 2m letters lay unopened in government warehouses, which, according to civil servants, showed "the kind of vengeance our boys must have wreaked on the abject Hindoos and Mohammadens, who killed our women and children."

Misra’s casualty claims have been challenged in India and Britain. "It is very difficult to assess the extent of the reprisals simply because we cannot say for sure if some of these populations did not just leave a conflict zone rather than being killed," said Shabi Ahmad, head of the 1857 project at the Indian Council of Historical Research. "It could have been migration rather than murder that depopulated areas."

Many view exaggeration rather than deceit in Misra’s calculations. A British historian, Saul David, author of The Indian Mutiny, said it was valid to count the death toll but reckoned that it ran into "hundreds of thousands".

"It looks like an overestimate. There were definitely famines that cost millions of lives, which were exacerbated by British ruthlessness. You don’t need these figures or talk of holocausts to hammer imperialism. It has a pretty bad track record."

Others say Misra has done well to unearth anything in that period, when the British assiduously snuffed out Indian versions of history. "There appears a prolonged silence between 1860 and the end of the century where no native voices are heard. It is only now that these stories are being found and there is another side to the story," said Amar Farooqui, history professor at Delhi University. "In many ways books like Misra’s and those of [William] Dalrymple show there is lots of material around. But you have to look for it."

What is not in doubt is that in 1857 Britain ruled much of the subcontinent in the name of the Bahadur Shah Zafar, the powerless poet-king improbably descended from Genghis Khan.

Neither is there much dispute over how events began: on May 10 Indian soldiers, both Muslim and Hindu, who were stationed in the central Indian town of Meerut revolted and killed their British officers before marching south to Delhi. The rebels proclaimed Zafar, then 82, emperor of Hindustan and hoisted a saffron flag above the Red Fort.

What follows in Misra’s view was nothing short of the first war of Indian independence, a story of a people rising to throw off the imperial yoke. Critics say the intentions and motives were more muddled: a few sepoys misled into thinking the officers were threatening their religious traditions. In the end British rule prevailed for another 90 years.

Misra’s analysis breaks new ground by claiming the fighting stretched across India rather than accepting it was localised around northern India. Misra says there were outbreaks of anti-British violence in southern Tamil Nadu, near the Himalayas, and bordering Burma. "It was a pan-Indian thing. No doubt."

Misra also claims that the uprisings did not die out until years after the original mutiny had fizzled away, countering the widely held view that the recapture of Delhi was the last important battle.

For many the fact that Indian historians debate 1857 from all angles is in itself a sign of a historical maturity. "You have to see this in the context of a new, more confident India," said Jon E Wilson, lecturer in south Asian history at King’s College London. "India has a new relationship with 1857. In the 40s and 50s the rebellions were seen as an embarrassment. All that fighting, when Nehru and Gandhi preached nonviolence. But today 1857 is becoming part of the Indian national story. That is a big change."

What they said

Charles Dickens: "I wish I were commander-in-chief in India … I should proclaim to them that I considered my holding that appointment by the leave of God, to mean that I should do my utmost to exterminate the race."

Karl Marx: "The question is not whether the English had a right to conquer India, but whether we are to prefer India conquered by the Turk, by the Persian, by the Russian, to India conquered by the Briton."

L’Estaffette, French newspaper: "Intervene in favour of the Indians, launch all our squadrons on the seas, join our efforts with those of Russia against British India …such is the only policy truly worthy of the glorious traditions of France."

The Guardian: "We sincerely hope that the terrible lesson thus taught will never be forgotten … We may rely on native bayonets, but they must be officered by Europeans."

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Afghan rebels take back NATO areas

KANDAHAR, Over the past six weeks, the Taliban have driven government forces out of roughly half of a strategic area in southern Afghanistan that American and NATO officials declared a success story last fall in their campaign to clear out insurgents and make way for development programs, Afghan officials say.

A year after Canadian and American forces drove hundreds of Taliban fighters from the area, the Panjwai and Zhare districts southwest of Kandahar, the rebels are back and have adopted new tactics. Carrying out guerrilla attacks after NATO troops partly withdrew in July, they overran isolated police posts and are now operating in areas where they can mount attacks on Kandahar, the south’s largest city.

The setback is part of a bloody stalemate that has occurred between NATO troops and Taliban fighters across southern Afghanistan this summer. NATO and Afghan Army soldiers can push the Taliban out of rural areas, but the Afghan police are too weak to hold the territory after they withdraw. At the same time, the Taliban are unable to take large towns and have generally mounted fewer suicide bomb attacks in southern cities than they did last summer.

The Panjwai and Zhare districts, in particular, highlight the changing nature of the fight in the south. The military operation there in September 2006 was the largest conventional battle in the country since 2002. But this year, the Taliban are avoiding set battles with NATO and instead are attacking the police and stepping up their use of roadside bombs, known as improvised explosive devices or I.E.D.’s.

“It’s very seldom that we have direct engagement with the Taliban,” said Brig. Gen. Guy Laroche, the commander of Canadian forces leading the NATO effort in Kandahar. “What they’re going to use is I.E.D.’s.”

The Taliban also wage intimidation campaigns against the population. Local officials report that one of the things that the insurgents do when they enter an area is to hang several local farmers, declaring them spies.

“The first thing they do is show people how brutal they are,” said Hajji Agha Lalai, the leader of the Panjwai district council. “They were hanged from the trees. For several days, they hung there.”

NATO and American military officials have declined to release exact Taliban attack statistics, and collecting accurate information is difficult, particularly in rural Afghanistan. According to an internal United Nations tally, insurgents set off 516 improvised explosive devices in 2007. Another 402 improvised explosive devices were discovered before detonation.

Reported security incidents, a broad category that includes bombings, firefights and intimidation, are up from roughly 500 a month last year to 600 a month this year, a 20 percent increase, according to the United Nations.

The rising attacks are taking a heavy toll. At least 2,500 to 3,000 people have died in insurgency-related violence so far this year, a quarter of them civilians, according to the United Nations tally, a 20 percent increase over 2006.

NATO and American fatality rates are up by about 20 percent this year, to 161, according to Iraq Casualty Count, a Web site that tracks deaths in Iraq and Afghanistan. The Afghan police continue to be devastated by Taliban bombings and guerrilla strikes, with 379 killed so far this year, compared with 257 for all of last year.

Yet the Taliban have been unable to take large towns this year and have carried out 102 suicide bombings, roughly the same number as last year, according to the United Nations. A conventional Taliban spring offensive was predicted by many but never materialized, and Western officials say that raids by NATO and American Special Operations forces have killed dozens of senior and midlevel Taliban commanders this year.

Maj. Gen. Bernard S. Champoux, deputy commander for security for the NATO-led International Security Assistance Force, said the Taliban’s leadership was in “disarray” and had not been able to carry out the attacks it had hoped this year and would be even weaker next year.

“This has been a shaping year,” he said. “I think next year will be a decisive year.”

Afghan Army units have performed well, according to Western officials. The trouble has come when the army and foreign troops withdraw, leaving lightly armed Afghan police forces struggling to hold rural areas. Corruption is rampant among the police, and some units have exaggerated casualty rates or abandoned checkpoints.

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Fugard feels ‘betrayed’

Victory, which premiered in the UK city of Bath, paints a bleak picture of modern South Africa. It centres on a violent burglary of an elderly white widower committed by two black teenagers, Freddie and Victoria.

Fugard told BBC World Service’s The Ticket programme that he took the theme after his own home was burgled on four occasions in the last two years – the last of which involved someone he trusted.

"It gave a focus to a sense of betrayal I’ve had growing in me with time, as I looked at what South Africa was becoming and the direction it was heading in," he said.

"I compared it with what I had felt 12 years ago when, together with millions of South Africans of all races and creeds, we stood in long queues to cast our votes in the first ever democratic election.

"That was a moment of incredible euphoria, of hope, that South Africa would in fact – as it did – turn its back on the violence of its past and try to forge a new identity."

Fugard, who initially became famous through his works about South Africa under apartheid, has set a number of his recent plays in the same village as he reflects on how the country has changed since those first democratic elections in 1994.

He said that it showed how burglary, violent crime, drug abuse "and all the attendant horrors of what the world is made up of now" have reached even this remote place in the Karoo desert.

He added, however, there is a "slender note of affirmation" in the fate of the young woman, Victoria, at the centre of the play.

Fugard established his reputation when he worked extensively with two of South Africa’s greatest actors, John Kani and Winston Ntshona.

Together they wrote three groundbreaking plays, including The Island and Sizwe Banzi is Dead – performed and workshopped in black townships.

He said that taking these plays into the townships, and talking loudly on stage "about things that were only whispered about" was, for him, "an absolutely defining experience of the potency of theatre."

And he said that, though he is now 75 years old, he still writes "with the same joy and the same sense of celebration.

"Underlying even the bleak in my opus is celebration – the celebration of theatre," he added.

"I was talking to the director of the Bath production of Victory this morning – and I just felt so proud to be a member of the theatre community.

"This community stretches all the way back to Shakespeare, and even earlier. Ours is a very noble profession, even though in many cases we’ve been the outcasts of society."

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US threatens to abandon NATO RRF

The United States has drastically scaled down its military engagement in the NATO rapid reaction force and has threatened to abandon the elite troops of the western defense pact, the business daily Handelsblatt quoted NATO circles as saying Monday.

The ‘NATO Response Force’ is no longer fully operational, NATO’s commander-in-chief John Craddock warned in his letter to NATO Secretary General Jaap de Hoop Scheffer.

The US has reportedly lowered its authorized troop strength in the NATO rapid reaction force to only five percent.

Meanwhile, other NATO member states are now also refusing to allocate enough soldiers and military material for the NATO Response Force.

While on paper the authorized troop strength of NATO’s military force is supposed to be at 25,000 that number has dwindled to less than 50 percent, only six months after the creation of the rapid reaction force.

The NATO Response Force goes back to an American initiative which sought to use the NATO elite troopers for crisis intervention anti-terror missions.

The US and Britain have also called for deploying the NATO rapid reaction force in war-stricken Afghanistan.

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Let?s Not Cower From The Hard Truth About Race And IQ

The debate over racial differences in IQ represents perhaps the greatest scientific controversy of the past half-century. The facts are not in serious dispute: blacks score, on average, significantly lower than whites in IQ tests in the United States, Britain and beyond.

Some argue that the only plausible response is to accept that blacks are naturally less intelligent than whites, a view that causes outrage among equal rights campaigners. But is there an alternative explanation for these puzzling statistics and what would it mean if there were not?

All too often the liberal establishment has stifled debate on the issue by pretending that it does not exist. It is asserted, for example, that the concept of intelligence is culturally relative. Even if this is (relatively) true, it does not alter the fact that the kind of intelligence revealed by IQ tests is crucial to one’s prospects in the modern world. It hardly helps the cause of racial equality to argue that, although blacks do worse at IQ tests, they have the kind of intelligence that is useful in preindustrial societies.

The reluctance of liberals to engage in real debate has left the impression that there is an inconvenient truth about IQ differences that is being suppressed by political correctness. This has bolstered the phenomenon of black skin being used subconsciously as an information-bearing trait, so that blacks are judged as a group rather than as individuals. This has prejudiced blacks in finding jobs and amounts to de facto affirmative action for whites.

The unwillingness to engage with the IQ controversy is based upon the fear that an exclusively environmental explanation is difficult to sustain. It is generally accepted that the variation in IQ within the white population is largely heritable, as is the variation within the black population. But if white-white and black-black IQ differences are predominantly heritable, how could it be that the black-white difference is exclusively environmental? This argument was first put by Arthur Jensen in 1969 in his seminal paper, How Much Can We Boost IQ and Scholastic Achievement?

But it rests upon a confusion. To see how, imagine a sack of genetically diverse seed that is randomly divided into two bunches. Bunch A is grown in a field with good lighting and Bunch B in a field with poor lighting. The differences in height between the seedlings in Bunch A will be exclusively genetic since they have all been subjected to the same environment. The same is true of Bunch B. But the difference in the average height between Bunch A and Bunch B is exclusively environmental—caused by the difference in lighting conditions.

This tells us that the variation within two populations (such as whites and blacks) has no logical connection with the variation between populations. This insight is particularly powerful when combined with the research of James Flynn, a New Zealand psychologist who discovered that IQ scores are inflating over time, a phenomenon that can only be explained by environmental factors.

Flynn’s discovery provides a real example of the thought experiment involving the seeds: IQ variation within each generation is largely heritable; IQ variation between generations is exclusively environmental. For the environmental hypothesis to work, we need only show that today’s black Britons face comparable conditions to whites in the mid1950s, something that chimes with common sense and social data. Allied with evidence of how IQ differences disappear when black children are brought up in residential nurseries with white children, the environmental hypothesis becomes convincing.

This will not come as a surprise to geneticists who have long understood that racial categories are social constructs lacking genetically rigorous boundaries. Most genetic variation exists within groups rather than between them and skin colour can be a highly misleading measure of the genetic distance between populations. It would have been astonishing if the diverse peoples who happen to share darker skin all had a genetic IQ inferiority.

The environmental explanation for racial IQ differences might also come as a relief to whites, a group that scores lower than East Asians. The idea that whites are naturally inferior in IQ to East Asians is worth pursuing if only to observe the reaction of white supremacists. But, as Flynn has shown, the environmental explanation is as persuasive for the difference between whites and East Asians as between whites and blacks.

But need liberals have been so paranoid about the possibility of natural IQ differences between the so-called races? Let us suppose, for the sake of argument, that whites have a genetic advantage in IQ over blacks. Would this sanction the kind of policies favoured by the far Right, such as segregationist schooling or a bar on blacks entering university?

It is not difficult to spot the logical fallacy. Even if the average black had a naturally lower IQ than the average white this would not mean that all blacks had lower IQs than all whites. There would still be a significant overlap such that if a white person and a black person were chosen at random there would be a fair chance that the black would have a higher IQ. This demonstrates that even in a hypothetical society with genetically based racial differences in IQ it is sensible to treat people as individuals rather than as group members.

Of course, if the far Right were sincere in its motivation for the different treatment of blacks it has a far more effective policy at its disposal. Why not set a mandatory IQ test and then divide people into high, medium and low IQ? Anecdotal evidence suggests that a disproportionate number of the far Right would find themselves in the lowest category and ripe to be bossed around by intelligent black masters.

This ought to demonstrate to all shades of opinion that apartheid is an evil whether it is based upon colour, IQ or anything else. The fear of the Left over possible natural differences between the so-called races is understandable but exaggerated. It is founded upon the idea that political equality is derived from some actual equality that we all share. The truth is that political equality is a moral abstraction, not an empirical discovery. Grasping this important truth should enable us to celebrate our differences rather than cower in fear of them.

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New Anti-Slavery Law Not Enough

The Mauritanian government must take additional measures to ensure a new law criminalizing slavery has an effect, human rights activists say.

"The new law is a very positive first step. It is only a first step though," said Romana Cacchioli, Africa Programme Coordinator for the British non-governmental pressure group, Anti-Slavery International. "We don’t eradicate slavery just by introducing a law."

On 8 August, Mauritania’s National Assembly unanimously adopted a law criminalizing slavery, which continues to exist in Mauritania in both traditional and contemporary forms. The law, passed by the Senate on 22 August, makes slavery punishable by 5-10 years in prison. It marks the first time in Mauritanian history that slave holders have been sanctioned.

However, in the wake of the International Day for the Remembrance of the Slave Trade and its Abolition on 23 August, local and international organisations are calling on the government to do more to give the law real meaning for the estimated half million slaves in Mauritania.

"Accompanying measures are necessary so that this law is not forgotten – so that it actually contributes to the emancipation of former slaves," said Mamadou Moctar Sarr, executive secretary of the forum of national human rights organisations in Mauritania.

"It’s not too soon to start talking about the next steps that should be taken," said Julia Harrington of the Open Society Justice Initiative, an international programme for law reform. "The existing law is not really going to be effective all by itself," she told IRIN from Nouakchott, where she was meeting with NGOs to discuss how best they could lobby the government.

NGOs are asking for a monitoring and implementation mechanism that would apply the law, investigate allegations of slavery, mediate the release of slaves and award compensation.

"The passage of this law is incredibly important and symbolic, but there’s still a lack of clarity about what its practical effect is going to be," Harrington said.

As it stands now, victims of slavery must take their complaints to the police, "who probably don’t have the mentality and definitely don’t have the resources to implement the law." She said victims also need the legal right to take their masters to court in a civil suit, a provision that was not included in the law.

The NGOs insist former slaves need social and economic reintegration projects if they are to be truly free. They want the government to set up welcome centres for slaves who leave their masters and give them access to land and income-generating activities.

"Even if they are no longer slaves, as long as there is financial dependency, they will never be totally free," said Sarr, of the forum of Mauritanian human rights organisations.

Another key demand is free education for children of slave descent. "All these people need to know their rights, so that they know that they are whole persons who should be proud of themselves," Sarr added.

The groups say an awareness campaign is essential to spread the news that slavery is a criminal offence, and that it has also been deemed incompatible with Islam. Mauritania is West Africa’s only Islamic republic. According to Cacchioli, religious leaders have promised to talk about the abolition of slavery in their sermons.

The groups are also pushing for a comprehensive law against discrimination, which would address the relationship between slavery and discrimination. "Many of the legacies of slavery are around discrimination," Cacchioli added, noting some people of slave descent have been prevented from owning land, accessing water and running in elections.

Slavery has existed for centuries in Mauritania, a Sahelian country which falls geographically and culturally between Arab North Africa and black sub-Saharan Africa. The enslavement of the black Arabic speakers (Haratines) is not limited to the upper class white Moores (Berber-Arabs), but also exists among black Africans, mostly of the Halpulaar and Soninké ethnic groups.

Prevalence of the internationally banned practice is hard to quantify. One estimate by the Open Society Justice Initiative places the number of slaves and former slaves at 20 percent of the population – or about 500,000 people – but the organisation says the numbers are impossible to confirm. According to most estimates, the Haratine cast – slaves, former slaves or the descendants of slaves – make up close between 40-50 percent of the Mauritanian population, although the government has not officially released results from the last census.

Forms of slavery in Mauritania range from people who live independently but cannot get married without their master’s permission to people who "don’t get a single bit of food unless it comes from their master’s hands, spend their lives looking after their masters, and get beaten everyday," according to the Justice Initiative’s Harrington.

NGOs say that despite its shortcomings, the new law marks a huge shift in government attitude. Slavery was banned in Mauritania in 1981, but previous governments always denied the practice existed and the subject remained taboo.

"This law is a recognition that the practice exists," said Boubacar Messaoud, president of SOS-Esclaves, the local NGO that led the push for an anti-slavery law.

All NGOs contacted by IRIN said they believed Mauritania’s first democratically elected government – elected in March 2007 – was sincere in its promise to eradicate slavery and would take their requests seriously.

"We are optimistic," Messaoud said. "And we will continue to push for these accompanying measures until one day we get them because they are the solution to the problem."

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