Manmohan Singh Defied National Line By Meeting Pakistan Diplomats

(THIS ARTICLE IS COURTESY OF THE HINDUSTAN TIMES OF INDIA)

 

Manmohan Singh defied national line by meeting Pakistan diplomats: Arun Jaitley

Arun Jaitley wanted the former prime minister to explain what transpired at the meeting and went on to defend Modi government’s track record of fighting terror.

GUJARATELECTION2017 Updated: Dec 11, 2017 23:19 IST

Press Trust of India, New Delhi
Union finance minister Arun Jaitley addresses the media in New Delhi on Monday.
Union finance minister Arun Jaitley addresses the media in New Delhi on Monday.(PTI)

Virtually ruling out an apology by Prime Minister Narendra Modi, Finance Minister Arun Jaitley on Monday charged former prime minister Manmohan Singh with defying the national line by meeting Pakistani diplomats and demanded to know the context, relevance and necessity of such a meet.

Terming the meeting as “political misadventure”, Jaitley wanted Singh and the Congress to explain the context of attending the dinner hosted by suspended party leader Mani Shankar Aiyar for Pakistani diplomats.

He said the main Opposition party is expected to follow the national policy, which states that terror and talks cannot go hand-in-hand.

“Is (the) main opposition party not part of the State?” he asked.

Jaitley said that if anyone defies the national line, he should be prepared to answer questions.

“It is a political misadventure, it has a political cost,” he said.

Read more

Jaitley addressed a press conference hours after Singh asked the Prime Minister to apologise to the nation for setting a “dangerous precedent”.

He wanted the former prime minister to explain what transpired at the meeting and went on to defend his government’s track record of fighting terror, saying no government in the past has a track record this government has in fighting terrorism.

In response to Singh’s demand for apology, Jaitley further said people who have violated the national policy of talks and terror not going hand in hand should apologize.

Trump And Clinton’s Are Proof Sexual Harassment And Sexual Assault Mean Nothing

DONALD TRUMP AND BILL CLINTON ARE NEON PROOF THAT SEXUAL ASSAULT/HARASSMENT MEAN NOTHING

(SEXUAL ASSAULT IS NOT A REPUBLICAN NOR A DEMOCRATIC ISSUE: IT IS A LEGAL AND A MORAL ISSUE!)

As about every one here in the U.S. know, and probably in all other countries as well, if you are very rich, well-connected, or are in a powerful job, you can treat women like insignificant sex toys. Ever since that well-connected Hollywood Producer finally got called out for his sexual crimes and this “#ME-TO” group got started a few days afterword, it seems that everyday more people are being called out for these crimes. In our society we tend to think of men sexually pushing themselves onto women and I believe that in probably 90+% of the real world cases are such, men against women. Yet folks we must also realize that there are cases of powerful women ‘forcing’ themselves sexually on some men and upon some other women. Also there is the reality of men ‘forcing’ themselves sexually on other men. There are some gay men and some gay women who are guilty of these crimes also.

 

In our society we have known for many decades that men, and women, are being raped while in prison. In our society it is so bad that people make jokes about when a guy gets sent to prison that his rear end is going to be getting torn up. Folks this is not funny, it is not humorous, it is mentally and morally sick! Back in 1978 I worked as a state prison guard for about two weeks in Illinois. I had a couple of family members in State Prisons before but I wanted to have a better understanding of what they had to live through, other than just from the ‘visiting’ room. I never witnessed a rape while I was there but I did hear some guards laughing about ones that they had ‘set up’ against some prisoners, they thought such things as prisoners getting gang raped was hilarious. I know that when I was in my early 20’s that I had several times that gay men tried to insist that they could force their wishes on me even though I had made it very plain that I was totally straight and told them to leave me alone or they would end up getting hurt. Unfortunately, there were several times that I had to make my point more clear to them when they refused to leave me alone.

 

Now, I would like to get to the headline of this article, people like Bill Clinton and Donald Trump and we should add in others like George H.W. Bush and his ‘little me’ George W. Bush. Even well before Bill Clinton of Donald Trump were elected President most everyone should have know that these two men were nothing but sexual predators, yet both major political parties endorsed these two criminals to lead their party. Think about it, millions of men and women voted for them anyway. Right now Mr. Trump should be in a federal prison cell, right next to Bill Clinton. Think about this issue also please, both of their wives know exactly what their husbands are and yet they are still married to them and still support them. Now lets talk about the disgusting old fart George H.W. Bush. Folks evidently he is still, even from his wheelchair, sexually assaulting women, and his wife Barbara is standing right next to him in some cases, just smiling. Now, the reason I think that ‘Little Me’, George W. Bush belongs in this scum pile. Do you remember when he was President and he was at a gathering of World Leaders in Europe when he came up from behind the seated German Chancellor Angela Merkel and started massaging her shoulders and upper back? Do you remember how she yelped because she had no idea this moron was either behind her nor that he was fixing to physically put his hands upon her? For George W. to have so casually done this to a woman in such a camera filled event, what do you think he does to women, whom he doesn’t even know, where the cameras aren’t at?

 

Friends, until the people of the United States physically force these perverts to be put into prison for their sexual assaults, they will continue. If we the people do not right now force these people out of their positions and insist on long prison terms for them and for their wives (because they are accessories to their crimes in some cases) as they just go along with the flow per say, these crimes are only going to get much worse. Right now if you are paying any attention to the National News stations we are seeing the proof of what I am saying here today. Examples of our First Lady, she just stays totally silent, obviously ‘living the life style’ is more important to her than her own personal integrity or the lives of the women her husband molest. Look at how Hillary Clinton is acting about all of these men being brought out into the open! She is only verbally attacking the men whom are Republicans and she is staying quiet about the accused Democrats and about her own husbands continuing assaults on women. Donald ‘the Fraud’ Trump, do you notice how he will blast accused Democrats yet stay totally silent about this anti-Christian dude in the Alabama Senate race as well as being totally silent about the dozens of women that he has sexually assaulted himself? And speaking of this child molester in Alabama how even his wife is verbally and physically ‘standing behind her man’?

 

Just as I was getting ready to close this letter to you a ‘Yahoo notice’ just popped up on my computer saying the following “President Trump discounts assault accusations against Republican candidate Roy Moore, saying Alabama voters ‘don’t need a liberal’ in that Senate seat”, end of quote. Remember, Mr. Moore is a former DA and a former Alabama State Supreme Court lead Judge. Also notice these facts, this fraud we have as our Nations ‘top Cop’ (Attorney General) Jeff Sessions held the Senate Seat Mr. Moore is trying to fill. Mr. Sessions has personally know Mr. Moore for decades down in Alabama, is this why the Attorney General isn’t having him arrested and put into prison? Is this a case of the ‘good ole boy system’, especially being they are of the same ‘anti-Christ’ political party? Folks, I am not a Democrat either, they have proven themselves over and over to be just as bad or even worse that their Republican bedfellows. Either ‘We The People’ stand up as one and physically throw these pieces of trash out of ‘Our Government’ or we as a Nation deserve to have these pieces of trash as our ‘Leaders’. My personal bet is that the Democrat Doug Jones will win the Senate seat in Alabama on December 12th then hopefully that will be the start of sweeping the human feces’ out of Our Political System, the business world and out of Hollywood. If not, we have no one to blame but ourselves!

 

 

Arab League Condemns Iran’s Terrorist Ally: Hezbollah

(THIS ARTICLE IS COURTESY OF CNN)

 

Saudi Arabia ramped up its campaign against Iran’s growing influence in the Arab World Sunday by persuading most of the 22 member states of the Arab League to condemn Iran’s Lebanese ally, Hezbollah, as a “terrorist organization.”

Arab foreign ministers gathered at the League’s headquarters in Cairo Sunday for an emergency meeting called by Saudi Arabia. Lebanon’s foreign minister, Gibran Bassil, did not attend, and the Lebanese representative at the meeting expressed reservations over the final communique.
Iraqi Foreign Minister Ibrahim Al-Jaafari also did not attend the meeting. Iran, along with the US-led international coalition, has been a major supporter of Baghdad in its war against ISIS.
“We want to hold everyone responsible,” Bahraini Foreign Minister Khalid bin Ahmed Al-Khalifa said during the deliberations. “We want to hold countries where Hezbollah is a partner in government responsible, specifically Lebanon.” Al-Khalifa claimed that Lebanon “is subject to full control by this terrorist group.”

Arab ministers attend a meeting at the Arab League headquarters in Cairo on Sunday.

The cabinet, led by outgoing Lebanese Prime Minister Saad Al-Hariri, includes several ministers affiliated with Hezbollah.
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Commenting on the Bahraini foreign minister’s statement, American University of Beirut professor Rami Khouri told CNN that “Hezbollah is certainly the single most powerful political group in Lebanon, where governance requires complex consensus building in which Hezbollah is clearly preeminent. But it is not in total control.”
This latest flare-up between Saudi Arabia and Iran was sparked by a November 4 incident in which Iranian-supported Houthi rebels in Yemen fired a ballistic missile at Riyadh’s international airport. Saudi Arabia subsequently accused Hezbollah and Iran of being behind the attack. Both have denied any involvement in the incident. Relations between Saudi Arabia and Iran have been rocky since the 1979 Iranian revolution.
Saudi Arabia subsequently expressed its anger at Hezbollah, which maintains close ties with Iran. Saudi Minister for Gulf Affairs Thamar Sabah has warned the Lebanese they must choose “either peace or to live within the political fold of Hezbollah.”
Hariri announced his resignation as prime minister of Lebanon on November 4 from Riyadh on the Saudi-funded Al-Arabiya news network, accusing Iran of destabilizing Lebanon and the region. Many Lebanese, including President Michel Aoun and Hezbollah Secretary-General Hassan Nasrallah, have said they believe Hariri resigned under Saudi pressure.
Hariri flew to Paris Saturday and vowed to return to Lebanon to attend celebrations marking the country’s independence day on November 22.
It’s not clear whether Sunday’s Arab League meeting will translate into concrete action. The League is notorious for passing resolutions and issuing communiques which are rarely acted upon. It is, however, the first time the Arab League has taken such a strong public stand against Hezbollah.
Reacting to the emergency meeting, Iranian Foreign Minister Javad Zarif said, “Unfortunately countries like the Saudi regime are pursuing divisions and creating differences, and because of this they don’t see any results other than divisions.”
While the Arab foreign ministers deliberated in Cairo, Iran’s growing power across the region was on display in Syria. On Sunday evening Hezbollah’s media unit posted on YouTube a video of Qassem Suleimani, the powerful head of Iran’s Quds Force, meeting with what appeared to be Iraqi, Lebanese and Syrian fighters in the newly liberated Syrian town of Albu Kamal. The town, on the Iraqi-Syrian border, was the last significant population center in Syria to be held by ISIS.
Iranian forces have played a key role in backing the regime of Syrian President Bashar Al-Assad in its war against the rebels and ISIS.

Is Trump Administration Working On A Serious Israeli PA Peace Plan?

(THIS ARTICLE IS COURTESY OF THE TIMES OF ISRAEL)

 

US must address our security needs, PM says amid peace plan speculation

Israel ‘won’t agree to talks with the Palestinians as long as Hamas’ is part of Palestinian Authority, Netanyahu tells fellow ministers

Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem on November 19, 2017. (AFP PHOTO / POOL / RONEN ZVULUN)

Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem on November 19, 2017. (AFP PHOTO / POOL / RONEN ZVULUN)

Prime Minister Benjamin Netanyahu said Sunday that Israel’s response to any peace plan proposed by the Trump administration would be determined solely by the country’s security needs and interests.

The comments came amid reports that the US plans to push forward with a peace plan that would recognize a Palestinian state but leave open the possibility for all Israeli settlers to remain in their homes. An Israeli TV report to this effect Saturday night was dismissed as inaccurate by both Israel and the US.

Speaking to a gathering of Likud ministers Sunday morning, Netanyahu said, “As for the speculation I’ve been hearing [about the US plan], if [US President Donald] Trump presents a diplomatic plan, the only consideration that will guide me will be Israel’s national and security interests.”

At the full cabinet meeting shortly after, Netanyahu told ministers, “I don’t intend to address the many speculations we’ve heard over the weekend” regarding the Trump plan. But, he added, the security and other interests that will determine Israel’s response to such a plan “have been explained fully to our American friends.”

At the earlier meeting, Environmental Protection Minister Ze’ev Elkin asked Netanyahu if the Trump administration was aware of last month’s cabinet decision that ruled out negotiating with any Palestinian government “that relies on Hamas.”

“Very much,” Netanyahu replied, according to Channel 10 news. “I, too, won’t agree to talks with the Palestinians as long as Hamas is part of an alliance [with the Palestinian Authority,” he told the Likud ministers.

According to a Hadashot (formerly Channel 2) news report Saturday, the US plan would include recognition of a Palestinian state, but no insistence on the evacuation of Israeli settlements or settlers under a permanent accord, while Washington would back most of Israel’s security demands regarding the West Bank.

Citing what it said were senior Israelis intimately involved in the ongoing discussions with Trump’s peace team, Hadashot said the plan would see Trump prepared to offer recognition of Palestinian statehood, with the parameters of that state to include land swaps. The borders, however, would “not necessarily” be based on the pre-1967 lines.

Sunni Arab states and others would provide hundreds of millions of dollars in economic assistance for the Palestinians to help encourage Palestinian Authority President Mahmoud Abbas to accept the deal, the report said.

The US would recognize most of Israel’s stated security needs, including for the ongoing presence of Israeli forces in the Jordan Valley, the TV report added. It said Netanyahu, for his part, was pushing for the retention of overall Israeli security control in all Palestinian territory.

No settlers or settlements would be evacuated under the US proposal, the TV report said, and no Arabs would be required to relocate.

Prime Minister Benjamin Netanyahu (L) and US President Donald Trump are seen prior to their meeting at the Palace Hotel in New York City ahead of the United Nations General Assembly on September 18, 2017.(AFP Photo/Brendan Smialowski)

The report was immediately denied by both Washington and Jerusalem.

A White House official called it “not an accurate representation” of the peace plan being worked on.

“There is constant speculation and guessing about what we are working on and this report is more of the same,” the official said. “It is not an accurate representation; rather it is a mix of possibilities and ideas that have existed for decades.”

“What we can say is we are engaged in a productive dialogue with all relevant parties and are taking a different approach than the past to create an enduring peace deal,” the official told The Times of Israel. “We are not going to put an artificial deadline on anything and we have no imminent plans beyond continuing our conversations. As we have always said, our job is to facilitate a deal that works for both Israelis and Palestinians, not to impose anything on them.”

Netanyahu’s office similarly stated that “the report is not accurate.” It said Netanyahu’s response to the US proposal would depend on its content and specifically on whether it met “the security needs and national needs of the State of Israel.”

The proposal is to be presented within months, but not in the next month, the TV report claimed. It will not deal with the issue of moving the US embassy to Jerusalem, or with US recognition of Jerusalem as Israel’s capital.

Raoul Wootliff contributed to this report.

READ MORE:

Why Should Anyone Believe Any Thing Donald ‘The Fraud’ Trump Say’s

 

Donald ‘the fraud’ Trump’s political base is uneducated white males of which I am considered one of. Because I am very technology challenged I guess I am one of ‘those people’, you know whom I mean, the deplorable’s.  The political talking heads say Trump’s base are white males with only a high school education or less. I have an Associate Degree in Sociology and Anthropology but I had to work my behind off to obtain a 2.72 GPA. What I am saying is that I am not a genius, I am just an average person. I do try my best to be a good Christian person, I know that I fail at my efforts constantly though. I do say these things to you so that you know that I do not consider myself as being better than you, or anyone else, well, except for the IDIOT in Our White House. It is a bit difficult to believe that anyone on the planet is more clueless than ‘the Donald.’

 

Now let us get down to the reason for this article today. Our glorious ‘habitual Liar in Chief’ is on a 12-day trip to Asia. Yesterday he made a speech to the South Korea Congress and today he is in China with his “good friend” President Xi Jinping. Before he went to South Korea he spent time in Japan with their leader Mr. Abe and I hear that they spent time on a golf course together. You know the only place that you normally hear more lies told than on a fishing boat, is on a golf course. This is especially true when Donald Trump enters the course. I read a lot of newspapers from all over the world almost every day and one of the things that is very clear is that no one anywhere believes anything that comes out of this mans mouth. It does seem that the only place you may find anyone here in the States who actually believes anything he says is on the Fox News Network.

 

If you are an ally of the United States these days, Mr. Trump has very plainly made it clear that he doesn’t give a flip about such things as longstanding treaties or friendships. Remember the fiasco/lies about the US Aircraft Carrier battle group that was “speeding toward Korea” as a sign of strength to our friends in South Korea and as a warning to North Korea? The same battle group that was actually heading in the opposite direction headed toward Australia to take part in ‘war games’ off of Australia’s northeast coast! This ‘bluff’! Do you remember the anger of the South Korean people and government officials when they found out that Mr. Trump had basically set them up as bait? Mr. Trump lies so often and changes his mind so often people with any sense at all have trouble remembering the last time he ever told the truth about anything. Just as our Ally’s have learned they cannot trust his word on anything, government leaders have also learned this same truth. President Putin and President Jinping both must be giddy as all heck realizing that there is an ignorant fool in the White House, it is obvious that both of these men are a whole lot wiser, smarter, and intelligent than Mr. Trump. You know what else, even the ‘Little Rocket Man’ knows all of these things about him also. The only question is, will the Republicans in the Senate grow a set and impeach this Fool before he starts a nuclear war with North Korea and their friends in China? I used the word ‘Fraud’ in the headline because to me, if you cannot believe a single thing that comes out of a persons mouth not only are they a habitual liar, they are a FRAUD and to me, these terms fit Mr. Trump perfectly!

 

For those of you who do not like it that I am calling out Mr. Trump for the person that he is please take a moment and get your Bible out. Now in the index look up the words Fraud and Fool. I was going to use a couple of passages that describe what the Bible says about these two kinds of people so that you could match them up with Mr. Trump’s actions. As you can see I didn’t waste the writing space because there were so many that describe Mr. Trump so perfectly that I decided to simply request that you see/read them all for yourself.

 

 

Lebanese Prime Minister Resigns While In Saudi Arabia

(THIS ARTICLE IS COURTESY OF TIME.COM)

 

Lebanese Prime Minister Saad Hariri in Yarzeh near Beirut, Lebanon in September.
Lebanese Prime Minister Saad Hariri in Yarzeh near Beirut, Lebanon in September.
Hassan Ammar—AP

By Zeina Karam / AP

6:07 AM EDT

(BEIRUT) — Lebanese prime minister Saad Hariri resigned from his post Saturday during a trip to Saudi Arabia in a surprise move that plunged the country into uncertainty amid heightened regional tensions.

In a televised address from Riyadh, Hariri fired a vicious tirade against Iran and its Lebanese proxy Hezbollah group for what he said was their meddling in Arab affairs and said “Iran’s arms in the region will be cut off.”

“The evil that Iran spreads in the region will backfire on it,” Hariri said, accusing Tehran of spreading chaos, strife and destruction throughout the region.

Hariri was appointed prime minister in late 2016 and headed a 30-member national unity cabinet that included the Shiite militant Hezbollah. The government has largely succeeded in protecting the country from the effects of the civil war in neighboring Syria.

The country is sharply divided along a camp loyal to Saudi Arabia, headed by the Sunni Muslim Hariri, and a camp loyal to Iran represented by Hezbollah. President Michel Aoun, who was elected in October 2016 after more than two years of presidential vacuum, is a close ally of Hezbollah.

His election was made possible after Hariri endorsed him for president, based on an understanding that Aoun would then appoint him as prime minister.

In a statement, the presidential office said Aoun was informed by Hariri in a phone call of his resignation, adding that the president now awaits Hariri’s return to the country to clarify the circumstances of his resignation and proceed accordingly.

Hariri’s bombshell resignation Saturday was expected to raise tensions in the country and ushers in a stage of deep uncertainty and potential instability. It comes amid a sharp escalation in Saudi rhetoric against its regional archrival Iran.

In his speech, he suggested he feared for his life and said the climate in the country is similar to the one that existed before his father, the late prime minister Rafik Hariri, was assassinated in 2005.

Several Hezbollah members are being tried in absentia for the killing by a U.N.-backed tribunal in The Hague, Netherlands. Hezbollah denies any involvement.

Hezbollah has sent thousands of its fighters to Syria to shore up President Bashar Assad’s government. The group’s intervention in Syria is highly controversial in Lebanon.

Hariri said Hezbollah’s policies have put Lebanon “in the eye of the storm.” His attacks on Hezbollah come on the heels of new U.S. sanctions on the group that many fear will impact negatively on the Lebanese economy.

“Hezbollah was able in past decades to impose a reality in Lebanon by force of arms directed at the chests of Syrians and Lebanese,” he said.

“I declare my resignation from the premiership of the Lebanese government, with the certainty that the will of the Lebanese is strong,” Hariri said.

“When I took office, I promised you that I would seek to unite the Lebanese, end political division and establish the principle of self-sufficiency, but I have been unable to do so. Despite my efforts, Iran continues to abuse Lebanon,” he said.

Earlier this week, Saudi State Minister for Gulf Affairs Thamer al-Sabhan sharply criticized Hezbollah, calling for its “toppling” and promising “astonishing developments” in the coming days during an interview with the Lebanese TV station MTV.

Al-Sabhan met with Hariri in Saudi Arabia when the now resigned prime minister was visiting earlier this week. Hariri abruptly returned to the kingdom later Friday before his bombshell announcement Saturday.

In tweets after meeting Hariri, al-Sabhan described it as “long and fruitful meeting” that resulted in agreements over many issues that concern the Lebanese. “What’s coming is better, God willing,” al-Sabhan tweeted on Tuesday. In a series of tweets, al-Sabhan criticized the Lebanese government for tolerating Hezbollah’s criticism of the kingdom.

He earlier said that those who cooperate with Hezbollah must be “punished.”

India: PM Modi govt unveils Rs 9-trillion plan to boost economy

(THIS ARTICLE IS COURTESY OF THE HINDUSTAN TIMES)

 

Modi govt unveils Rs 9-trillion plan to boost economy

The plan, unveiled by finance minister Arun Jaitley, includes spending Rs 2.11 trillion towards pumping capital into banks and another Rs 7 trillion on a roads and highways project.

BUSINESS Updated: Oct 25, 2017 07:03 IST

Moushumi Dasgupta and Alekh Archana
Moushumi Dasgupta and Alekh Archana
HindustanTimes, New Delhi
Finance minister Arun Jaitley during a press conference in New Delhi on Tuesday.
Finance minister Arun Jaitley during a press conference in New Delhi on Tuesday.(Arvind Yadav / HT )

Prime Minister Narendra Modi’s government announced it would invest over Rs 9 trillion to recapitalise state-owned banks and build new roads and highways on Tuesday, its biggest move yet to shore up an economy growing at its slowest in three years.

Plans include spending Rs 2.11 trillion towards infusing capital into banks over the next two years and another Rs 7 trillion over the next five years on the roads project, some of which will run through economic corridors as well as remote border and coastal areas.

The Rs 2.11 trillion is far higher than the Rs20,000 crore the government had previously planned to invest, in 2017-18 and 2018-19, in recapitalising banks.

Separately, the government also announced an increase in the price at which it procures wheat, pulses and oilseeds from farmers and waived the penalty on delayed filing of initial returns on the new Goods and Services Tax for August and September.

The Rs 9 trillion gambit could help improve credit flow to companies from banks weighed down by bad debt, and boost public investment.

The plan to build more than 83,000 km of roads and highways over the next five years will boost connectivity and create jobs.

Rajnish Kumar, the chairman of the country’s largest lender, the state-owned State Bank of India said the recapitalisation of banks would help channel more investments to sectors such as infrastructure. “The thrust to infrastructure will generate direct and indirect positive cascading effects for lot of related sectors and will create feel good factor for all stakeholders,” he added.

The spending push, anticipated by many after growth slowed to 5.7% in the June quarter, will also likely help the government blunt political criticism ahead of state polls over the next few months.

DK Srivastava, chief policy advisor at EY India said the measures announced will stimulate the economy. “The critical factor will be how much of the expenditure is front-loaded to be spent this year.”

Unveiling the plan at an unusually high-octane press conference complete with a power point presentation, finance minister Arun Jaitley said the economy was on a strong wicket and that temporary hiccups were not unusual when structural reforms were undertaken.

“When results of the GDP of the first quarter came out then I had said that we will be ready for the response,” said Jaitley, flanked by half a dozen senior officials of his ministry who gave presentations on the health of the economy.“We will report on the situation as they develop.”

But ramping up government spending, at a time when subdued tax collections and sluggish economic growth have strained federal revenues, could widen the fiscal deficit beyond the targeted 3.2% of GDP.

There were already signs that the government had little option but to spend its way out of trouble that was exacerbated, in part, by last year’s shock withdrawal of high-value banknotes as well as disruptions on account of the implementation of the Goods and Services Tax.

Rejecting any pessimism over the economy, Jaitley said the government had held several internal meetings on the situation and that discussions were also held with Prime Minister Modi.

“India has been fastest growing major economy for the last three years,” he said.

“(Our) Attempt is to maintain high growth rate.”

(With input from Alekh Archana in Mumbai for Livemint)

PM Narendra Modi presents new projects, defends Demonetisation and GST

(THIS ARTICLE IS COURTESY OF THE HINDUSTAN TIMES)

 

PM Narendra Modi presents new projects to election-bound Gujarat, defends demonetisation and GST

Prime Minister Narendra Modi inaugurated and laid the foundation for projects worth more than Rs 1,600 crore, addressed three public rallies, a road show and took a 31km ferry ride.

INDIA Updated: Oct 23, 2017 07:02 IST

HT Correspondents
HT Correspondents
Hindustan Times, Ahmedabad/ New Delhi
Prime Minister Narendra Modi interacts with the children during his maiden voyage on the Ghogha-Dahej Ro-Ro ferry service in Bhavnagar, Gujarat on Sunday.
Prime Minister Narendra Modi interacts with the children during his maiden voyage on the Ghogha-Dahej Ro-Ro ferry service in Bhavnagar, Gujarat on Sunday.(PTI)

Prime Minister Narendra Modi vowed on Sunday to continue his economic reforms and asserted that the Indian economy is on the right track, defending his government’s major steps such as the demonetisation drive, and the goods and services tax.

His remarks are aimed at deflecting the Opposition’s flak after the economy decelerated to a three-year low of 5.7% in the quarter ended September.

“After all the reforms and hardcore decisions, the economy of the country is on track and is going in the right direction,” Modi said at a rally in Dahej, one of the three places he visited in Gujarat, his home state where assembly polls are due this winter.

Prime Minister Narendra Modi on the maiden voyage of the Ro-Ro ferry service between Ghogha and Dahej in Bhavnagar, Gujarat on Sunday. (PTI)

Modi’s assurance couldn’t cut ice with his rivals, though. As many as 13 opposition parties will meet on Monday to sharpen their strategy for a renewed attack on the government over the economy.

“GST is fast becoming ‘Grossly Scary Tax’ under Modi Govt as 40 lakh assesses fail to file September returns,” tweeted Randeep Surjewala, the Congress’s chief spokesperson.

The parties, led by the Congress, plan protests on November 8 when Modi’s decision to scrap two high-value banknotes in a shock recall completes a year. Programmes are likely to be held to highlight what they called the demonetisation aftershocks.

Prime Minister Narendra Modi prays at Ghogha Sea Ferry Point to mark the inauguration of the Ghogha-Dahej Ro-Ro ferry service, in Ghogha in Bhavnagar on Sunday. (PTI)

The opposition parties also accused the government of persuading the Election Commission to delay declaring the poll schedule for Gujarat and help the ruling BJP dole out sops to voters.

Modi, who was Gujarat chief minister since 2001 till he became Prime Minister in 2014, announced a slew of projects for his state on Sunday.

He inaugurated or laid the foundation for projects worth more than Rs 1,600 crore, addressed three public rallies, a road show and took a 31km ferry ride from Ghogha to Dahej, and had lunch with disabled kids onboard the boat.

“The flood of promises from Modi in Gujarat, due to EC’s relief by not announcing the polls. Whither ‘One election?” tweeted CPM general secretary Sitaram Yechury, referring to Modi’s previous stand seeking simultaneous parliamentary and state elections.

Prime Minister Narendra Modi being welcomed on stage at the public meeting in Ghogha in Gujarat on Sunday. (PTI)

But the theme of Modi’s speeches was economic stability that was meant to address concerns of his state’s large business community after the economy switched to GST this July. Traders are known to back the BJP, which is in power for two decades in Gujarat.

He criticised the Opposition for questioning his visit to the poll-bound state in his speech in Vadodara, where he inaugurated and dedicated several projects.

“Can’t I come to Vadodara after Diwali? Some people don’t like to see me coming here. As they can’t directly tell me anything, they are targeting the Election Commission,” he said.

He defended the projects, saying he was clearing stuck files.

Vadodara is the second constituency he won in the 2014 Lok Sabha elections but gave up to retain Varanasi. He dedicated housing, drinking water and fuel pipeline projects among others to the city.

“Those who managed to win (elections) after a recounting are today abusing the EC. They have no moral authority to do so,” he quipped a day after former Union minister P Chidambaram carped at the poll panel for not announcing dates for the Gujarat elections along with Himachal Pradesh, the other state going to the polls this winter.

The Prime Minister also blamed the Congress-led UPA, which ruled the country for a decade before the BJP regained power three years ago, for what he called a backlog of development projects in Gujarat.

At Ghogha in Bhavnagar, where he launched a ferry service, Modi accused the previous UPA government of trying to halt development along the state’s coastline giving environment as an excuse. The sea ferry route cuts 310km by road to 31km.

Gujarat faced difficulties but these “were solved one after another” after he became Prime Minister, he said.

He advocated blending economy with ecology and hailed his government’s signature decisions — demonetisation and GST. He said the fundamentals of the economy are strong and “financial stability of the country will be maintained while initiating reforms”.

The remarks came hours after revenue secretary Hasmukh Adhia pitched for some rejig of GST rates to help small and medium enterprises.

Adhia’s comments gave fresh fodder to the opposition parties on the controversial GST rates.

“Now this explains why the Hon PM was so happy to share credit for GST with the Congress. He’s not usually given to sharing credit anywhere,” tweeted Omar Abdullah, former chief minister of Jammu and Kashmir.

BJP parliamentarian Shatrughan Sinha joined the debate too and said: “Some support GST, some don’t. Some support #DeMonetisation some don’t, this doesn’t mean critics are anti-national.”

Face It, China Totally Owns The BRICS

(THIS ARTICLE IS COURTESY OF FORBES FOREIGN AFFAIRS)

 

Investing #ForeignAffairs

Face It, China Totally Owns The BRICS

I cover business and investing in emerging markets.  Opinions expressed by Forbes Contributors are their own.

Chinese President Xi Jinping walks with Brazilian President Michel Temer in Beijing on Friday, just two days before the opening of the annual BRICS Summit on Sept. 3. China is far and away the most powerful of the five BRICS. (Photo by GREG BAKER/AFP/Getty Images)

Is it at all humiliating to the Russians, at least a little bit, that the Chinese are far and away the biggest, baddest BRICS nation? Russia used to be a world superpower. It’s a world oil power. A world nuclear power. But beyond that, China is more relevant to the world economy than the Russians.

Brazil. What about them? For years, the commodity bubble made it seem Brazil was on its way to becoming the runaway leader of Latin America, surpassing Mexico, which is basically a U.S. import market. Brazil was, and is, a more diverse economy than Mexico. They weren’t dependent on any one nation, really. Then the commodity bubble burst and Brazil’s purchasing power has dropped, putting it on par with China’s. GDP per capita is also similar. China’s Happy Meal toy making economy has grown up and is home to more new billionaires than anywhere else. And as leaders from Brazil, Russia, India and South Africa meet in Xiamen on Sept. 3, it is clear to everyone watching that China is the leader.

Russia needs China because it is in a never-ending feud with the West. They have two things in common, generally: commodities supply and demand, and a desire for a multi-polar world, though this is probably more Vladimir Putin’s thing than Xi Jinping’s. China is at least as dependent on the U.S. as Russia is dependent on Europe.

Brazil needs China because that’s where all of its soybeans and iron ore goes. Brazil’s agribusiness is vital to the economic recovery now just two quarters young. In May, China and Brazil launched a joint investment fund to increase productive capacity. The fund has an initial sum of $20 billion and will reportedly go to finance investment projects in Brazil (not in China) that are of interest to both countries. Brazil’s president, Michel Temer, is already in China. He wants to convince them to buy airports and participate in other privatization bids as Brazil tries to trim more fat from its federal government.

Following the recent border skirmish, India can probably do without China. India’s main trading partners are the U.S. and United Arab Emirates. But if you include Hong Kong with China, then China is No. 2. More importantly, India’s imports are heavily dependent on the Chinese. Some $59 billion worth of Chinese imports moved into India in 2015, more than the No. 2 Sweden and No. 3 U.S. combined. Bilateral trade volume between China and India also rose by 21.5% year-on-year to $47.52 billion between January and July 2017, Indian customs data show.

South Africa needs China investment and Chinese buyers for its raw materials. China is its biggest export market, accounting for around $12 billion. That beats South Africa’s No. 2 partner, the U.S., with around $7 billion in exports, both based on 2015 figures.

China is a total beast. South Africa, Russia and Brazil are particularly at its mercy.

See: China-Like Wages Now Part Of U.S. Jobs Boom — Forbes

Rio de Janeiro Is A Complete Mess — Forbes

Trump Already Beat India On H1-B Visa Issue — Forbes

Guess Who Is Growing Sick Of Anti-Russia Sanctions? — Forbes

Indian Prime Minister Narendra Modi and Xi Jinping at the BRICS summit in Goa, India last year. India and China have agreed to pull back their troops from a face-off in the high Himalayas where China, India and Bhutan meet, signaling a thaw in the months long standoff. It’s a relationship where China has more Aces up its sleeve than India. (AP Photo/Manish Swarup, File)

Although all five of these countries stand to gain from closer commercial ties, China is the one that will gain the most. China has just about enough money sitting in international reserves to equal the economic output of Brazil ($1.7 trillion)Russia ($1.3 trillion) and South Africa ($295 billion). It’s state owned enterprises have the funding to buy strategic assets abroad, like water and oil and gas infrastructure. And its new billionaires like Jack Ma, founder of the e-commerce giant Alibaba, has his eyes set on being the Jeff Bezos of emerging markets. He basically already is.

The upcoming BRICS Summit will end on Sept. 5 with the usual rhetorical messaging and memorandums of understanding about how they will all accelerate trade, investment and technological know-how. China’s Commerce Ministry spokesman Gao Feng said on Friday that China wants to deepen international cooperation in improving industrial capacity. In convincing their emerging market partners that they need to get more productive, China can sell them their new robotic technologies. All those Chinese workers replaced by automation, can work building the screws and attaching the wires and packaging up new robots to ship to Brazil instead.

A few BRIC country companies have big business in China, too. It is not entirely a one way street. Brazil’s Embraer jet manufacturer has a facility in southern China, and builds planes with their Chinese joint venture partner.

Russian investment bank, VTB Capital, set up shop in Shanghai in 2015.

India’s Tata Group family of companies is in China. IT firm Tata Consultancy Services is there, with the usual tie-up with a Chinese firm.  Tata Steel has two steel mills in China. Tata’s Jaguar Land Rover unit has a JV with Chery Automobile to build the luxury cars in Changshu.

South Africa’s Old Mutual financial services firm used to have a foothold there but are now looking to dump their insurance unit, at least.

Meanwhile, here’s a quick snapshot of what China has accomplished, as outlined on Friday by China Daily:

  • Gezhouba Group announced March 30 that it will spend up to $200 million to acquire 100%  stake of Sistema Produtor Sao Lourenco, a water supply company in Brazil, China Daily first reported.
  • China Investment Corp partnered with Brookfield Asset Management in April to take a 90% percent stake in Nova Transportadora do Sudeste, a natural gas pipeline company owned by Petrobras.
  • Xiaomi enters the Russian smart phone market.
  • Shanghai-listed China Railway Group is building a $2.5 billion high-speed railway in Russia. The deal was announced in June.
  • Alibaba’s Ant Financial Unit opens up Alipay in cahoots with Russia’s VTB Group last month.
  • China Petroleum Engineering & Construction Corp. inked a deal with Russia’s Gazprom in April to build an estimated $15 billion natural gas pipeline into China.
  • Alibaba Cloud, the cloud computing arm of Alibaba, plans to build a data center in Mumbai by the end of next March, the company said on June 9.
  • Oil refiner Sinopec signed an agreement to buy 75% of Chevron South Africa’s assets for $900 million in March.

It is clear who is the big buyer and who is staking claim to turf long term. Brazil is selling; China is buying. South Africa is a seller, too. So when Putin and other leaders meet in China on Sunday, they will all know on many levels, that in terms of global finance and trade, they are no longer equals.

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Could Donald Trump’s Ignorance And Stupidity Cause A War Between China And Japan?

(THIS ARTICLE IS COURTESY OF THE GUARDIAN.COM, THE LONG READ, AND ANDY TAI’S WEBSITE)

 

Could Trump’s blundering lead to war between China and Japan?

China and Japan’s postwar truce has always been an uneasy one – and if Washington cools its support for Tokyo, the dynamics in the region could shift dangerously. By 

For news out of east Asia, it is difficult to compete with North Korea’s youthful, jocular despot, Kim Jong-un, and his near-daily threats to fire a nuclear-tipped missile at US territory. On Monday, Kim was pictured surrounded by his top generals mulling over maps with targets closer to home, in South Korea and Japan, while warning again that he was ready to “wring the windpipes of the Yankees”. The young Kim, and his father and grandfather before him, have long tossed violent epithets at their enemies, but Pyongyang’s new capabilities – to potentially deliver a nuclear warhead across the Pacific – have injected fresh danger into the crisis on the Korean peninsula.

The North Korean crisis is one of the few creations of the cold war to have outlived the Berlin Wall, despite persistent predictions that the communist dynasty would collapse. There are many factors driving the confrontation, chief among them paranoia in Pyongyang, where the Kim dynasty is focused above all on preventing regime change. In neighbouring China, Beijing is paralysed: it is caught between anger at Kim for destabilising the region, and fear that if it pushes Pyongyang too hard, the regime will collapse, and fall into the hands of South Korea, an ally of the US. The US itself also seems impotent, knowing that starting any war could lead to devastating attacks on its allies in Seoul and Tokyo.

Lost among the headlines is the fact that the crisis is just a symptom of a bigger drama unfolding in east Asia, where an entire postwar order, built and maintained by the US since 1945, is slowly coming apart.

While the US military bases still dotted across the region have a whiff of latter-day imperialism, for the past seven decades Pax Americana has underwritten an explosion in wealth not matched in the world since the industrial revolution. Since the 1950s, Japan, and then South Korea, Taiwan and China, have been able to put bitter political and historical enmities aside to pursue economic growth.

At the same time, the US presence in east Asia has papered over serial diplomatic failures. All of the frozen-in-the-1950s conflicts buried during the decades of high-speed economic growth are starting to resurface. China and Taiwan have drifted further apart than ever politically. The Korean peninsula remains divided and bristling with conventional and nuclear armoury. The Sino-Japanese rivalry overflows with bitterness, despite a bilateral business relationship that is one of the most valuable in the world.

The Chinese often quote an ancient idiom when speaking about Japan: two tigers cannot live on one mountain. China is in growing competition with Japan to be the dominant indigenous power in Asia, and many view this as a zero-sum game. Any clash between them would not be a simple spat between neighbours. A single shot fired in anger could trigger a global economic tsunami, engulfing political capitals, trade routes, manufacturing centres and retail outlets on every continent.

Whether these tensions play out peacefully depends not just on the two superpowers, the US and China. Japan – which has at different times threatened to eclipse them both – is also pivotal to regional stability. Prior to Donald Trump’s emergence, it was assumed that just about any scenario for the US in east Asia would involve broad continuity for the core elements of past policy, including trade liberalisation and a commitment to alliances, such as that with Japan. But Trump is also a living embodiment of the larger trend that the days of US dominance of the region are numbered.

Japanese prime minister Shinzo Abe with US president Donald Trump at the White House in February.
 Japanese prime minister Shinzo Abe with US president Donald Trump at the White House in February. Photograph: Jim Bourg/Reuters

Today the relationship between the three powers resembles a geopolitical version of the scene in the movie Reservoir Dogs in which a trio of antagonists simultaneously point guns at each other, creating a circle of cascading threats. In the east Asian version of this scenario, the US has its arsenal trained on China; China, in turn, menaces Japan and the US; in ways that are rarely noticed, Japan completes the triangle, with its hold over the US. If Tokyo were to lose faith in Washington and downgrade its alliance or trigger a conflict with Beijing, the effect would be the same: to overturn the postwar system. In this trilateral game of chicken, only one of the parties needs to fire its weapons for all three to be thrown into war. Put another way: if China is the key to Asia, then Japan is the key to China, and the US the key to Japan.

In recent months, it has become fashionable among American journalists and foreign policy analysts to warn of the so-called Thucydides trap – the idea that a rising power (China, in this case) is destined to go to war with an established power (the US). But there is another geo-strategic dilemma identified by the same ancient Greek historian, which is more pertinent. It is dangerous to build an empire, Thucydides warned; it is even more dangerous to give it away.

This “other Thucydides trap” encapsulates the real dilemma faced by the US in east Asia. After more than seven decades as the region’s hegemon, the US now has a choice to make. It could stand and fight to maintain the status quo, at potentially massive cost. Or it could retreat from east Asia, potentially leaving a trail of chaos in its wake.

During the presidential campaign, Trump suggested that Japan and South Korea had become over-reliant on US security, and that it was time for the US to pack and up and go home. But Asia’s economic rise has only magnified the dangers of an American drawdown. “It is not only true that China changed the status quo by getting strong,” said Yan Xuetong, one of China’s most prominent hawks, “but also that America and Japan changed the status quo by getting weak.”


AChinese friend, trying to describe how Washington views east Asia, came up with a disarmingly simple formula. “The Americans like the Chinese, but they don’t like China,” he said, and then: “They like Japan, but don’t like the Japanese.” George Kennan, the renowned strategist, called Japan’s partnership with the US “an unnatural intimacy”, born of conflict between two very different countries, which, over time, developed into a close relationship of its own. This intimacy – if that is what it is – has been hard won. A remarkable number of senior US officials, starting with Henry Kissinger, have not hidden their dislike for dealing with Tokyo. In his authorised biography, Brent Scowcroft, a hard-nosed veteran of America’s national security establishment, called Japan “probably the most difficult country” the US had to deal with: “I don’t think we understood the Japanese and I don’t think the Japanese understood us.”

It is not only the Americans who feel uneasy about the relationship. Washington originally saw the alliance as a way to ensure that Japan was on its side in the cold war and, later, that it stayed in sync with the US’s broader global strategy. By contrast, for Tokyo, according to the Japan scholar Kenneth Pyle, the security pact was an “unpleasant reality” imposed on the nation after the war, but one it cleverly and cynically made the best of. All the while, Tokyo has harboured the fear that the US and China are natural partners – big, boisterous continental economies and military superpowers that wouldn’t hesitate to bypass Tokyo in a flash, if only they could find a way to do so.

Into this volatile landscape strode Donald Trump, Republican candidate and now president, a man who cut his teeth politically in the 1980s with attacks on Japanese trade practices. On the campaign trail, Trump criticised Japan and South Korea for free-riding on US military power, and said both countries should acquire nuclear weapons if they wished to reduce their reliance on Washington. On trade, he singled out China and Japan for cheating Americans, in league with the domestic Visigoths of globalisation, Wall Street and big business.

In the White House, Trump has slightly altered his rhetoric, paying lip service to the conventions of the postwar order. When Shinzo Abe, Japan’s prime minister, visited soon after the election, Trump repeated a commitment made by his predecessors, saying that the two countries’ bilateral defence treaty covered the Japan’s Senkaku Islands, which are also claimed by the Chinese, as the Diaoyu. Diplomats in Washington told me after the meeting that Trump had only done this after being talked into it by his daughter, Ivanka, who had been lobbied by the Japanese.

The Senkaku Islands, owned by Japan but also claimed (as the Diaoyu Islands) by China.
 The Senkaku Islands, owned by Japan but also claimed (as the Diaoyu Islands) by China. Photograph: Kyodo/Reuters

Even if Trump accepts that the US, for the moment, has to abide by its treaty obligations to Japan, and other regional allies, he has never made the argument, during the campaign or in office, as to why it should. On the question of the other “Thucydides trap” – the principle that it is dangerous to build an empire but more dangerous to let it go – Trump had seemed quite unconcerned; that was something for other countries to worry about. Far from fretting about Japan’s ability to defend itself against China, Trump seemed to believe it would do fine.

In an interview with the Economist in September 2015, Trump was asked what would happen if China started bullying its neighbours without the US being there to protect them. He cast his mind back to more than a century earlier, when Japan and China began to fall into conflict. “If we step back, they will protect themselves very well,” Trump said. “Remember when Japan used to beat China routinely in wars? You know that, right? Japan used to beat China, they routinely beat China. Why are we defending them at all?”

Trump, in his clumsy way, had hit on an existential point, one that he exploited brilliantly in his campaign. Why do Asian countries need the US in the region anyway? Why can’t they get on with each other independent of the US? To fully grasp this dilemma, it is essential to understand the poisonous relationship between China and Japan.


Most accounts of Sino-Japanese relations paint the two countries’ differences as the inevitable result of Japan’s invasion and occupation of China in the 1930s, and throughout the second world war, until Tokyo’s surrender in August 1945, followed by an extended squabble over responsibility for the conflict. Alternatively, their clash is depicted as a traditional great-power contest, with an ascending superpower, China, running up against a now-weaker rival. A third template takes a longer view: one of a China bent on rebuilding the influence it enjoyed in Asia in imperial times.

None of these templates alone, however, captures the tangled emotions and complex psychology of the Sino-Japanese relationship. For centuries, China had been both the Athens and the Rome of east Asia, an empire that established a template of cultural, political and institutional values and structures that permeated the region. Japan’s scripts, its merit-based bureaucracy, hierarchical social relations and exam-intense education system – all of which remain embedded in the country’s 21st-century way of life and governing institutions – originated in China.

In small, striking ways, the Japanese display an authentic affinity with their Chinese heritage. In early 2016, at a farewell reception for a senior Japanese diplomat in Washington, each guest, including the Chinese ambassador, was given a copy of a poem as he or she departed. Penned by the diplomat in whose honour the reception was held, the poem – which celebrated the seasonal blooming of cherry blossoms in Washington – was written in Chinese characters in the style of revered Tang dynasty poets. The gift was an homage to the enduring influence of Chinese culture and to contemporary education in Japan, where schoolchildren still learn the art of classical Chinese poetry.

The histories of modern Japan and China have much in common as well. Both were forcibly opened in the 19th century at the point of a gun wielded by an imperialist west. In the century that followed, they both battled to win the respect of the intruders who considered themselves racially superior to Asians. And yet, far from displaying solidarity with each other, the two nations went in different directions: Japan modernised rapidly, while China disintegrated. Ever since, they have struggled to find an equilibrium of their own. If one country was ascendant, the other was subordinate.

An anti-Japan protest in Hong Kong in 2012.
 An anti-Japan protest in Hong Kong in 2012. Photograph: Kin Cheung/AP

Despite their shared roots, Japan and China have remained as psychically remote as they are geographically close. In Europe, an acknowledgment of the second world war’s calamities helped bring the continent’s nations together in the aftermath of the conflict. In east Asia, by contrast, the war and its history have never been settled, politically, diplomatically or emotionally. There has been little of the introspection and statesmanship that helped Europe to heal its wounds.

A corrosive mutual antipathy has gradually become embedded within Japan and China’s ruling parties, and in large sections of the public. In turn, seemingly unavoidable political divisions – partly driven by constant demands from China for Japan to apologise for its wartime conduct and Japanese hostility to such pressure – have eroded trust and strengthened hyper-nationalists in both countries.

China’s economic rise and Japan’s relative decline have only reinforced this trend. In both capitals, the domestic tail now wags the diplomatic dog as often as the other way around. What once seemed impossible and then merely unlikely is no longer unimaginable: that China and Japan could, within the coming decades, go to war.


The territorial disputes, the enduring strains of the cold war, and China’s demand for respect and fear of containment all help to explain the region’s diplomatic tensions. So, too, does geopolitics, which is the furnace for Sino-Japanese rivalry. But at the core of their rivalry are the two countries’ wildly varying and persistently manipulated memories of the Sino-Japanese wars in Asia.

Even the most basic of disagreements over history still percolate through day-to-day media coverage in Asia, in baffling and insidious ways. Open a Japanese newspaper in 2017 and you might read of a heated debate about whether Japan invaded China – something that is only an issue because conservative Japanese still insist that their country was fighting a war of self-defence in the 1930s and 1940s. Read the state-controlled press in China, and you will see the Communist party drawing legitimacy from its heroic defeat of Japan; in truth, Chiang Kai-shek’s Nationalists carried the burden of fighting the invaders, while the Communists mostly preserved their strength in hinterland hideouts. Scant recognition is given to the US, which fought the Japanese for years before ending the conflict with two atomic bombs.

The history of Sino-Japanese relations since the late 19th century, when the two countries first fought a war, has long had a dominant storyline. Japan encroached on Chinese territory, demanding and then taking bits of land here and there, before eventually launching a full-scale invasion and occupation in the 1930s. Tens of millions of Chinese soldiers and civilians died in the conflict. After its defeat and surrender in 1945, so the narrative goes, Tokyo prevaricated endlessly about apologising to China and making good for the damage wrought by its armies.

The first part of the storyline is true. From the late 19th century onward, Japan did set out to dismember China. Although the precise numbers of casualties are still debated, the Nanjing massacre is not an invention, as some prominent Japanese politicians and historians gratingly insist. Japan committed atrocities, used forced labour from its colonies to support the war effort, and oversaw the recruitment of the so-called “comfort women” for brothels for their soldiers.

The history of the history wars, however, is more complex, with many twists and turns that are lost in today’s shrill headlines. When there was much soul-searching in Japan about the war during the 1950s and 1960s, for example, Beijing had no interest in seeking an apology and reparations. Instead, Mao Zedong and his premier, Zhou Enlai, cultivated relations with Japan in an effort to break the US embargo on their country.

In 1961, in a meeting with a Japanese Socialist Party leader, Mao perversely thanked Japan for invading China, because the turmoil created by the Imperial Army had enabled the CCP to come to power. “We would still be in the mountains and not be able to watch Peking Opera in Beijing,” he said. “It was exactly because the Imperial Japanese Army took up more than half of China that there was no way out for the Chinese people. So we woke up and started armed struggle, established many anti-Japanese bases, and created conditions for the War of Liberation. The Japanese monopolistic capitalists and warlords did a ‘good thing’ to us. If a ‘thank you’ is needed, I would actually like to thank the Japanese warlords.”

Trump with Chinese president Xi Jinping in Florida in April.
 Trump with Chinese president Xi Jinping in Florida in April. Photograph: Jim Watson/AFP/Getty Images

Mao often adopted a freewheeling, sardonic style in conversation, which seemed deliberately aimed at putting his interlocutors either at ease or off balance. But his statements brushing off an apology and expressing gratitude to the Japanese for their invasion are embarrassingly discordant in today’s China, and so jarring that they are invariably airbrushed by the CCP these days. The official explanation contends that Mao used sarcasm to underline how Japan’s invasion had “awakened” the Chinese people. Chinese scholars of Japan who have tried to tread a more independent path say the truth is simpler: Mao had no interest in an apology because he genuinely believed that the CCP owed its victory in the civil war to Japan.

Official policy was tailored in conformity with Mao’s views for much of the next three or four decades, even as it grated with many Chinese who retained visceral memories of Japanese atrocities. As one scholar at a government thinktank in Beijing told me last year: “This came from Mao’s mouth. There was no need for any discussion, or for him to consider outside elements such as public opinion or conflicts between past and present policies. His power was absolute.”

By the mid-1980s, when Beijing decided that Japanese remorse should become a permanent fixture of bilateral relations, Tokyo had come to view such demands as little more than self-serving politics. Some Japanese leaders were willing to apologise, just to deprive China of a ready-made issue to beat them over the head with. “We can apologise as much as China wants. It’s free, and very soon China will become tired of asking for apologies,” the former prime minister Noboru Takeshita confided to foreign ministry officials in the early 1990s.

As it turned out, the Chinese never did tire of receiving apologies. They thought they were the country’s due. But Japan did tire of giving them. In the process, history disputes have become a huge obstacle to a genuine postwar settlement.


The rage expressed in China toward Japan these days over history is the tip of a much larger iceberg. Beijing’s core problem is not with the details of the war itself, but with the diplomatic deals that were agreed to settle it. In Washington’s and Tokyo’s eyes, the San Francisco Treaty of 1951 forms the foundation of the east Asian postwar order. The treaty ended the US occupation, reestablished Japan as a sovereign nation, fixed it as a security partner for the US, and gave the country space to rebuild itself into a modern, prosperous nation. The treaty also laid the basis for Japan’s gradual rapprochement with other former wartime foes in south-east Asia and Australia.

Chinese scholars, in lock-step with the country’s political leaders, use a different template for the region, something that is largely overlooked in Washington. Their reference points are the conferences in Cairo in 1943 and in Potsdam in July 1945, at which the so-called Three Great Allies – the US, the UK and the Republic of China – set the terms for Japan’s unconditional surrender. In the process, as Chinese politicians, historians and activists have begun to argue more forcibly in recent years, Japan was consigned to a permanently subordinate role in the region.

Beijing favours Potsdam, because it disarmed Japan, restored the territories Tokyo had seized in the previous century, and confirmed China’s great-power status. It doesn’t recognise San Francisco, because it enshrines the US-Japan security alliance and the American military presence in east Asia. China was represented at Cairo in the form of the then-Nationalist government, but not at San Francisco in any form.

The notion that Japan should sit inert in east Asia, enduring a kind of life sentence as a result of having lost the war, absurd as it is, is given much credence in China, by its top leaders as well as in the popular political culture. As president Xi Jinping told the visiting Pentagon chief Leon Panetta in late 2012, “The international community must not allow Japan to attempt to negate the results of the World Anti-Fascist War, or challenge the postwar international order.” In another sign of this mindset, a pro-nationalist book that became a bestseller in the mid-90s, The China That Can Say No, had a chapter titled In Some Respects, To Do Nothing Is Japan’s Contribution To The World!


Sheltering under America’s nuclear umbrella in the postwar period, Japan has in fact been a constrained power since its defeat in 1945. The Americans, after all, wrote a new “pacifist” constitution for Japan, which said it should only maintain military forces for its own self-defence. At times, Japan, at least in security terms, has seemed to be “inert” and willing to free-ride on the Americans.

But thanks to China and North Korea, those days are over. Shinzo Abe has fashioned a strong national security policy and strengthened the country’s military. While attention was focused on Pyongyang’s nuclear antics in early August, Japan quietly announced that it was studying equipping its military with offensive weapons, such as cruise missiles, to allow it to strike overseas enemies for the first time since the war.

An infantry unit in Japan’s self-defence force at a ceremony at Camp Asaka in 2016.
 An infantry unit in Japan’s self-defence force at a ceremony at Camp Asaka in 2016. Photograph: Kim Kyung Hoon/Reuters

Japan presents a particular challenge to China. Militarily, it is not a pushover like other south-east Asian nations Beijing has clashed with recently, such as the Philippines. In 2012, the central government in Tokyo nationalised the Senkaku Islands in order to prevent a far right-wing nationalist politician, Shintaro Ishihara, from buying the islands from their private owners. At that point, Beijing considered trying to take the islands by force. A retired regional leader with good connections in both China and Japan told me that Beijing had studied its options carefully: “They did a number of basic tabletop exercises to work out, if there was a conflict over the islands, whether China could prevail; I had many conversations with Chinese military planners at the time.” In the end, he said, Beijing concluded that the “co-relation of forces was not with them”. Unlike Japan, which has fought naval wars, China has fought only one, in 1894-5, which it lost. The Chinese had made huge strides as a military power, but not so far that they were confident about taking on their old foe.

Perhaps the most salient factor in China’s calculations over the Senkaku Islands was what might happen if it should lose to Japan. In Tokyo, a military loss would be disastrous, of course, and the government would certainly fall. But that would be nothing compared with the hammer blow to China’s national psyche should Japan prevail. “That would be terminal for the CCP,” the former regional leader observed. “Regime change.”

Over time, though, China’s capabilities, and its confidence, are likely to outpace those of its neighbour. Japan knows that China is not going away, whereas one day, the US might. China is keen to emphasise to every nation in Asia a single truth: China’s presence is a geopolitical reality in Asia. The US presence, by contrast, is a geopolitical choice, one that China intends to make more and more costly.

If Tokyo continues to feel threatened, and loses faith in the US, the next step is going nuclear. That will be the definitive sign that Pax Americana in Asia is over, and it could come sooner than anyone thinks.

Main illustration by Lee Martin/Guardian Design

Asia’s Reckoning: China, Japan, the US and the Struggle for Global Power by Richard McGregor will be published by Allen Lane on 5 September.

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