Showing posts with label nationalization. Show all posts
Showing posts with label nationalization. Show all posts

Wednesday, October 31, 2012

This Senkakus Thing Is Not Getting Any Better, Folks

For all those those who have told me, in communications public or private, for weeks now that the government of China, after a period of bluster, is ready, if only the Government of Japan were not so stubborn, to resume the fostering of a relationship of increasing trust, stability and reasonableness, a message:

Please...stop.

China raises stakes over disputed islands *
Financial Times

China has started making concerted efforts to chase Japanese ships out of waters surrounding the disputed Senkaku islands in the East China Sea, ratcheting up tensions between Asia's two largest economies.

The Chinese State Oceanic Administration – which enforces the nation's maritime interests – said four of its ships on Tuesday tried to expel Japanese vessels out of waters where they were operating "illegally".

[Snip]

This move by China could change the status quo in a dispute that has escalated in recent years, Chinese analysts said. Last month, Beijing announced a territorial baseline for the disputed islands that defined the exact geographical location of its claimed territory to back its long-standing claim.

"Chinese government vessels did not chase Japanese boats out of the islands' territorial waters in the past, as these waters were an area controlled by the Japanese coastguard," said Li Guoqiang, an expert on border issues at the Chinese Academy of Social Sciences. "But the situation changed when we created a legal basis for enforcing our claim by announcing the territorial baseline for the islands in September."


(Link)
Of course the assertion that State Oceanic Administration ships chased out JCG vessels is a falsehood promoted solely for Chinese domestic consumption. However, that China's government and news agencies are collaborating in the promulgation of this false narrative should worry anyone with the least sense of how countries march into wars.

As for the theory behind the actions, The New York Times reported that former Ambassador Chen Jian yesterday gave a presentation to the Foreign Correspondents' Club of Hong Kong that could singe one's ears off.

Ex-Envoy Says U.S. Stirs China-Japan Tensions
The New York Times

HONG KONG — A longtime Chinese diplomat warned Tuesday that the United States is using Japan as a strategic tool in its effort to mount a comeback in Asia, a policy that he said is serving to heighten tensions between China and Japan.

The retired diplomat, Chen Jian, who served as an under secretary general of the United Nations and as China's ambassador to Japan, said the United States should restrain Tokyo and should focus its diplomatic efforts on bringing about negotiations between China and Japan over the disputed islands in the East China Sea known as the Diaoyu by China and the Senkaku by Japan.

In an unusually biting assessment of the United States, Mr. Chen said: "It is in the U.S. interest to quarrel with China, but not to fight with China." [This is not what Chen said – MTC]

While Mr. Chen has retired from China's diplomatic service, his remarks were particularly significant because they represent the most detailed public exposition of China’s views at a time when Chinese officials have been wary of making comments because of the approaching Communist Party Congress, which is scheduled to begin in Beijing on Nov. 8.

In the speech, which was organized by the Chinese Ministry of Foreign Affairs and was attended by half a dozen Chinese diplomats, Mr. Chen held out an olive branch by urging that discussions between Japan and China should start on ways to reduce the risk of clashes between Chinese and Japanese patrol vessels that have gotten perilously close off the islands in the last month.

But the thrust of his speech was more hard-hitting, particularly regarding the United States. Some in China and Japan see the issue of the islands "as a time bomb planted by the U.S. between China and Japan," he said. "That time bomb is now exploding or about to explode."

Mr. Chen accused the United States of encouraging the right wing in Japan, and fanning a rise of militarism...


Being the skeptical soul that I am, I wondered what Chen really said. Luckily, the Foreign Correspondents' Club of Hong Kong is tech savvy and already has Ambassador Chen's address up on its website. (Link- scroll down)

For those without 26 minutes to spend listening to an inadvertently comic (albeit not Monty Pythonesque comic) view of history and international politics, some of the choicer bits, with commentary:

"Where there is oil, there is always trouble."

No comment necessary here.

"That happened at a time [1968] when China was busily engaged in what is called Cultural Revolution" {my underline – MTC}

Quick, someone call the Ministry of Education, Culture, Sports, Science and Technology and the Ministry of Foreign Affairs. Dump the stale "Japanese armed forces 'advanced into' (shinpo) China" versus "Japanese armed forces 'invaded' (shinryaku) China" debate. It was never either. Textbooks and government documents should not equivocate: Japanese armed forces were "busily engaged (ii kagen ni shiro) in China."

"I have a story to tell here. I recall at one stage that the then president of Philippines visited China and met Deng Xiaoping. And that former president raised the question of some of the [Nansha] islands, saying that they are so close to the Philippines, why don’t let Philippines hold on to them? And what was Deng's reply? He said, 'For that matter, the Philippines is not that far from China.' (Laughter) Of course what Deng means is not the Philippines is part of China. What he meant is that geographical proximity should not be taken as the solution over sovereignty over islands."

Ha, ha, ha. Funny. They are rolling in the aisles in Manila.

"We are living in a globalized world and an information age. These two factors have changed everybody’s life as well as relations between states. They have quickened the space of changes in the pattern of international relations. So now we say today the world is undergoing a major transformation and adjustment. They have given rise to what is called popularism and nationalism, both of which are on the rise."

Retranslation: "Sorry, when we let our citizens torch your facilities, loot your stores and assault your diplomatic missions, it's not us, it's globalization and silicon chips/glass fiber/signal multiplexing/html that are to blame."

"The interaction of the media, politicians and the general public is far greater than before. The result of that interaction is…often leads to the escalation of tension, whether domestic or between states."

Of course, we are not talking about China here. In China, the government exerts benign control over the media, to promote peace and respect for law, both domestically and in between states.

"While most of China's neighbors regard China's rise as an opportunity, for opportunity I mean closer cooperation to achieve mutual development and prosperity, some of our neighbors regard it as a mixed blessing: opportunity in economic terms and challenge in security terms. As China is in the process of rising, and it will take years for China to be really strong, economically and militarily, some countries that have territorial disputes with China regard these years, I mean now and the coming years, as their last opportunity to take hold of what they believe belongs to them."{my underline - MTC}

Do the smart cookies understand now why I have been such a stick in the mud over the Government of Japan’s never admitting the existence of a territorial dispute over the Senkakus? Or be cajoled into attempting to deploy cute sophistry? (Link)

"What is 'smart power'? As I see it, smart power is combination of two mutually reinforcing means...mechanisms. One, making use of outside force or outside countries. Two, exploiting contradiction among countries of the region."

Outside force or outside countries? The inside being...where? Let me guess: Japan is "outside" and ASEAN is "inside."

As for the second point, someone needs to email Hun Sen and tell him the bad news that from now on, China is relying on dumb power alone. No more mon, no more fun.

"U.S. is urging Japan to play a greater role in the region -- in security terms, not just in the economic terms -- which suits the purpose of the right wing in Japan more than perfectly."

Though not nearly so perfectly as Chinese government-abetted anti-Japan rioting, the promotion of anti-Japanese feelings through education, the boycotts of Japanese products, the cut-offs of the exports of materials vital to Japanese industry, the dispatch of Chinese government vessels into Japanese territorial waters and attacks on Japanese diplomats and diplomatic missions. So suck on that America!

"But, are there guarantees that Japan and the Philippines...and other countries for that matter, will not misjudge U.S. intentions, and carry their quarrel with China too far, and draw United States and China into a confrontation? The danger is apparent and China needs to be alert to that."

"Too far"...What a concept! China asserts that the Senkakus are theirs and the area within the nine-dash line is at the very least a core interest. By definition, Japan claiming sovereignty over the Senkakus and the Philippines having facilities in the Spratlys – i.e., the status quo – is too far.

"No, what are China's policy options? [snip] I see two major determinants: protection of sovereignty and preservation of stability, both at home and abroad. The first is the responsibility of any national state, that is to protect national sovereignty. The latter is the prerequisite of development. China's option must be something less than perfect; it has to be between these two considerations."

A less-than perfect world for China. Oh boo-hoo-hoo.

For Amaterasu's sake, grow up.

"That explains why, so far, the Chinese government has not taken any pro-active action to initiate changes in the status quo, wherever the dispute lies. China only respond to what it sees as provocation. The only question one can raise is whether the response is commensurate."

No, one can also ask the question whether what China sees as provocation is in fact provocation, or merely a pretext for China to leap down from its Olympian foregoing of "proactive action to initiate changes" to a grubby initiation of changes in the status quo.

The above, minus the snarky MTC commentary, is only a taste of what is available. There is a stunningly weird attempt to explain Japanese domestic politics. The conclusion features a ridiculous set of principles for China to follow in its grinding acquisition of territories – a set of principles which, sorry to tell those enamored of the concept of submitting territorial disputes to the International Court of Justice, never once invokes international law. Indeed, Chen explains at the beginning of his presentation that international law is a root cause of the current territorial disputes.

Peace should be the ultimate goal of all actors in the East Asian region. What we have, however, is not peace but a cold ceasefire. Peace requires humility, empathy and an acceptance of reality. The leadership of China, for its own reasons, finds those three requirements inimical to its interests.

----------

* Michiyo-san and Ms. Hille, I got the message. Will your editors cut me some slack, as I select only a small part of the text and provide the link to the original article?

Friday, October 26, 2012

Parsing Okada On The Senkakus - Oh Neo Where Art Thou?

Until yesterday, I lived as so many of you, in an intellectual landscape of great green trees, wide, clear rivers, and in the distance, peaks with their first dustings of autumn snow.

Now my mind wanders in a battered and bruised land, a sere landscape of ghostly shapes appearing and dissappearing, enshrouded in mist hanging above a gray crumble of burnt soil and blackened rocks.

If only I had not stumbled over this:
Japan's deputy PM admits Diaoyus dispute, opening path to China talks
Deputy PM acknowledges dispute with China over islands, potentially paving way for talks
South China Morning Post

Teddy Ng teddy.ng@scmp.com -- The top deputy to Japanese Prime Minister Yoshihiko Noda has acknowledged that a dispute with China exists over the East China Sea - a key concession and potential olive branch to Beijing.

Speaking at a meeting of the ruling Democratic Party, Deputy Prime Minister Katsuya Okada said Tokyo's control of the Diaoyu Islands - known in Japan as the Senkakus - could not be questioned, even as he admitted Beijing took issue with its claim.

"The Senkaku issue is not a territorial problem, but, as a matter of fact, there is a dispute between China and Japan," Okada was quoted by Kyodo News as saying. "Both sides must fix the current situation through dialogue."

Tokyo has long refused to acknowledge even the existence of a disagreement, a key roadblock to Beijing's efforts to draw it into negotiations. Noda's government has maintained the position even as coastguards from mainland China, Japan and Taiwan conduct competing patrols in the surrounding waters.

The dispute has resulted in widespread anti-Japanese protests and boycotts in mainland China, which have begun to take a toll on the Japanese economy. Japanese exports fell 10.3 per cent year on year in September.

Okada blamed nationalist Tokyo governor Shintaro Ishihara's bid to buy the islands from their private Japanese owner for triggering the row. Noda announced his own purchase plan in a bid to defuse the situation, but it only further angered Beijing.

"We need to tell China that it is safer for the islands to be controlled by the central government than by the Tokyo metropolitan government," Okada said.

Foreign Ministry spokesman Hong Lei said Beijing had always wanted to resolve the row through negotiations.

Luo Zhaohui, the ministry's Asian affairs director, went to Tokyo to meet his Japanese counterparts earlier this month, paving the way for bilateral talks.

(Link)
What? What? What?

Okada breaks with the official position in a significant way -- and the Sankei Shimbun does not go bananas, issuing a spate of editorials and op-eds battering Okada for his perfidious utterance?

How did a shift in Japan's stance, or Japan's stance as explained by Okada, fly completely under the radar?

I put out an all-points-bulletin for the original Japanese statement, which Mure Dickie of the Financial Times graciously provided:

尖閣諸島「都の購入計画間違い」 岡田副総理

2012/10/21 20:17

 岡田克也副総理は21日、和歌山市で講演し、沖縄県・尖閣諸島の国有化の背景に石原慎太郎東京都知事による購入計画があったことに触れ 「都が尖閣問題に乗り出したのは間違いだった。都は外交問題の責任を取れない。結果的に中国から非常に厳しい反応が返ってきた」と批判した。

 同時に「『都よりは政府が持った方が安定的』と中国側に伝えている。尖閣は領土問題ではないが議論があることは事実で、対話を通じ今の状況を鎮めないといけない」と指摘した。

(Link - J)

In what constitutes a glaring case of burying the lede, the Nihon Keizai Shimbun chose to emphasize in its headline Okada's stating that the Tokyo Metropolitan Government's plan to purchase the Senkakus was an error. A precedent-shattering shift in the government's stance on the status of the Senkakus is left to swing in the breeze in the last line.

For the benefit of those who do not read Japanese, or whose computers do not accept kanji, here is the last line, in romaji and in my translation.
"Senkaku wa ryodo mondai de wa nai ga giron ga aru koto wa jijitsu de, taiwa wo tsujiru ima no jokyo o shizumeru to ikenai."

"The Senkakus are not a territorial issue. However, that a debate exists is a fact. Given this, we must calm/quiet the present situation through dialogue."
The words that Okada puts in opposition are mondai (問題) and giron (議論). Mondai in the phrase ryodo mondai is "issue" – no question about that. However, what does giron mean? According to the Kojien dictionary, giron is:

a) The coming together for the purpose of transmitting of one’s own theories
b) To argue with another on a theoretical level
c) To set opinions to fighting against one another

So calling giron a "debate" is not a bad shorthand.

Now here is where we part with reality.

One might believe that "Let's debate the issues" is an uncomplicated and banal phrase. However, this is not so in the world Okada would have us inhabit.

In this new world one can still debate issues. One can also debate non-issues, such as whether curry with rice tastes better when one puts the curry on top of the rice or when one puts it next to the rice (that I have to ask guests, out of courtesy, which way they want their curry served indicates that the human race is marked for extinction). Non-issues are differences between two states of being that are so trivial as to be not worth one’s time discussing – but we do so anyway.

However, to the polar opposites issues and non-issues we are now supposed to accept a third pole: the not issues.

When the first ideas were being floated on how Japan could hold to its official stance on sovereignty over the Senkakus whilst giving the other side, whether it be Chinese or Taiwanese, some place to stand upon, I joked one had to resort to quantum mechanics to understand the proposals. (Link)

Quantum mechanical explanations, however, will do one no good here. There is no assumption of Japanese sovereignty both existing and not existing, the state of matter called “superposition.” Here, Okada has stated that there is no territorial issue involving the Senkakus. In physics terms, the wave function has collapsed: the territorial issue does not exist.

However, according to Okada, while an issue does not exist, a debate does.

Presumably, Mr. Luo and his counterpart Sugiyama Shinsuke, the Asian and Oceanian Affairs Bureau chief at the Ministry of Foreign Affairs, have been meeting in order to discuss everything except the sovereignty issue.

Why? Because the sovereignty issue does not exist.

If the issue of sovereighty does not exist, you cannot have a debate about it. If you cannot have a debate about it, you cannot have a debate about anything related to it. All substantive debate about who can and will do what where depends upon who has sovereignty at that "where."

So from the moment you start debating anything peripheral to the Senkakus, you are immediately thrown back to debating about something that does not exist.

So how are Mssrs. Luo and Sugiyama occupying their time?

They could ostensibly be discussing phenomenology: debating whether or not they are really there debating or, as it were, not debating about something that does not exist.

They could be discussing baseball, both in Japan and the United States. Or the U.S. elections. Or the Chinese leadership transition. Or Japan’s constipated legislative process.

They could be amusing themselves and their staffs with role-switching, saying, “OK, for this session I’ll be you and you’ll be me. Let’s see what happens.”

However, they cannot be talking about the issue that has brought them together because that, as we know, does not exist.

At which point I begin to regret not having chosen the blue pill.

Thursday, October 11, 2012

The Senkakus: When I Say Private Property, I Mean...

As I went walking I saw a sign there
And on the sign it said "No Trespassing."
But on the other side it didn't say nothing,
That side was made for you and me.

- Woody Guthrie, "This Land Is Your Land" *
(1940/1956)
A long, long time ago, I studied medieval Japanese history under Professor Jeffrey P. Mass. His lectures and writings at that time revolved around the concept of shiki ( 職 ) in the system of landholding and land management of the late Heian and Kamakura periods. Professor Mass published voluminously on the subject, both analyses and straight translations of documents.

Many years later I was making small talk with a professor after mutual introductions. I mentioned in passing that I had studied medieval history with Dr. Mass, to which the professor responded, "Oh yes, Jeff Mass. I have never quite understood what the point of his project was."

I bit my tongue at the time, as it was a first meeting. In my mind, however, I hissed, "Dr. Mass was investigating the fundamental nature of private property. We may think we understand what that private property is. Dr. Mass' research showed, very quietly, that we are just kidding ourselves."

Dr. Mass and his attempts to pound through my thick skull (an attempt that failed, at that time) that the concepts of private property are far from universal and indeed are institutionally and yes, culturally specific came to mind as I read the second point in Okumura Jun's posting of his thoughts on Yves Tiberghien's recent paper on the Senkakus.

Quoting from Okumura-san's post:
...the difference in the legal systems of the two countries regarding real estate ownership and more generally the state and the individual must have contributed significantly to Chinese misunderstanding of the Noda administration’s intent. Simply put, the Chinese public must find the notion that the state would have to engage in a regular bidding match with a local governor for a piece of land that is registered in a private individual’s name absurd. I suspect that most of China’s political and national security leadership, with little to no direct personal exposure to the legal and political systems of the West, also find it intuitively difficult to understand. He touches on this point briefly when you say, “Especially in a Chinese context, it seems unthinkable that there would not be a third option where the national government could step in to prevent the Tokyo deal without doing a full nationalization.” This must have been true at the grassroots and leadership levels alike and contributed significantly to the visceral fury and ferocity and made the conflict more intractable.

(Link)
I am not sure that Chinese local cadres and thugs are entirely bereft of an understanding of a concept of property rights as transcending and superseding law. They certainly understand the "What's mine is mine and what's yours is also mine" principle.

What I am sure is that the Chinese Communist Party has a vested interested in shutting down fast any discussion of the nature of property rights, especially as to the limits on state action such rights might impose.

It is not that folks cannot understand. They can, if given peace and quiet and not having someone shouting, "It's time to hate now! It's time to hate now" in their ears all the time. It is that the state does not want them to understand, as Professor Mass tried to get me to understand so many years ago, that private property may be something entirely foreign to one's vision of reality.

Ironically, the same professor who admitted perplexity as to the point at Dr. Mass' work wrote the fundamental text on another facet of the Senkakus controversy: how in Edo period, during what was purportedly the era of sakoku, Japan had at its contact points with the continent diffuse and porous borders, controlled in an ambiguous and fluid way by both the Edo bakufu and tozama ( 外様 ) daimyo -- where international relations were to a large extent "privatized" by both the relevant hanshu and the Tokugawa.

----------------------------
* The above verse is not included in the linked Guthrie recording. However, it appears in the copyrighted version, available here. Neil Young and Crazy Horse sing the verse twice in their version of the song.

Thursday, May 17, 2012

That Unanswered TEPCO Question

Now that the government of this blessed land has taken a majority stake in the technically bankrupt Tokyo Electric Power Company (TEPCO), phased in the replacement of the chairman and the president (E) and seen to a housecleaning of the board of directors. (E)

Many questions arise from the government's takeover as the main shareholder and appointer of executives and board members. What intrigues me is what will happen when the government and the new board members, particularly the outside board members, go through the books at TEPCO? Specifically, what are they going to find -- and once they find what they find, what are they going to do about what they find -- when they go through the accounts on how electricity costs are compiled?

From my understanding of the research done by Dr. Paul Scalise (and if Dr. Daniel Aldrich, if your research has identical findings, I apologize in advance for the sin of omission), a stunningly large fraction of the cost of TEPCO electricity cannot be explained by labor, capital or fuel costs. Indeed, if memory serves, the largest fraction of the costs of electricity is listed as simply "Other" -- and the amount listed in this category has remained unchanged, even as the costs of the various other inputs has either declined over time or has fluctuated in line with world energy prices.

What is this "Other"? To this point none of the electric power companies has been very upfront about the contents of this grab bag accounting entity. A certain fraction of this amount has always been assumed to have been payoffs to local communities, farming and fishing cooperatives and other business organizations with their facilities in the vicinity of power plants. Just how much of this other can be accounted for in this way is something the government can now, in theory find out, along with the rest of what has been lumped in to the category of "Other."

Of course, does the government want to know? Does it cut the subsidies to the local parasitic claimants, many of whom no longer can live and work in the vicinity of Fukushima Dai'ichi anyway, in order to lessen or forestall the rate hikes TEPCO has announced (E)? Do they keep them in place, as a sort of disaster recovery fund-by-default? Do they open up the accounts for public debate, or try to bury the truth in order to hide the complicity of regulators and politicians in the payouts? Or what if the government and the new board members find even more damaging reasons for the classing of certain costs as "Other"?

If the government owns TEPCO it not only owns company's problems but its secrets too.

What lies in between the covers of its account books?