Showing posts with label Disputes. Show all posts
Showing posts with label Disputes. Show all posts

Tuesday, October 9, 2012

The US Kick-Ass Foreign Policy And China

Hantu Laut

He was a bright shining star some four years ago, the impeccable oratory, assertiveness, aplomb and brimming with confidence he won a decisive victory over John McCain in both the electoral and popular vote of the 2008 U.S presidential election.

Watching the debate live over TV when I was in Kathmandu it was the obvious that Mitt Romney had sprung the most unexpected surprise that caught President Obama off guard. The Romney's spell have, somehow, rattled his confidence. His facial expression clearly showed how miffed he was with Romney's unanticipated remarkable performance.

Romney is no dunce. On conclusion of the debate he sent his detractors scurrying for explanation. His moment of triumph speech, much to the anguish of Obama's campaign team, and a big shot in the arm for his team,  narrowed the gap between him and Obama. Even the staunchest Obama supporters must have been miffed by Obama muffed performance.

What happened to the man of 2008? The eloquent speeches, the "yes we can"man and the straight talk that caught not only America but the world's attention. The first black man destined to break white monopoly of the presidency.

Has Obama lost his mojo?

As Mitt Romney narrows the margin and move in for the kill can Obama still resuscitates his dwindling popularity and reignite the spark the man that he was at the next presidential debate due 16 October 2012 and give Romney a run for his money or let Romney overtake him?

Can Obama bounce back?

If Obama loses the next debate, as sure as the sunrise, America will have a new president and with it come new political mindset that can change US foreign policy and the course of world peace. 

Mitt Romney, have decided to accuse Obama of "passive leadership" in his foreign policy, particularly, in the Middle East casting aspersion on Obama's capability as president, inferring the killing of US Libyan Ambassador Christopher Stevens by fanatical Muslims as Obama's lack of will to retaliate.

The world is watching on the possible return of  kick-ass foreign policy and Bush like belligerency that could throw the US into another war if Mitt Romney win the presidency.

Under his presidency Obama only carry on his predecessor's unfinished business and has not caused any new conflicts. He restrained from opening new theatre of war. Though, some of his promises fell short he has been more careful than the previous administration in the handling of crisis with Iran, North Korea and China.

Iran and China are growing threats to U.S. foreign policy. Iran covertly seeking nuclear capability and the Chinese naval excursion in the South China Sea had caused uneasiness in Washington. 

The US have deployed its naval ships in and around the area of possible conflicts in the China Sea. The Sino-Japanese dispute over the Diaoyu Islands brought back ghosts of the Sino-Japanese War. The Americans, who usually are quick to side with Japan have taken a non-interference attitude at the moment but is in a state of readiness should the conflict escalates into open warfare between the two nations.

Some weeks ago Chinese naval vessels stopped oil drilling exploration off the coast of Sarawak. The incident went unreported to avoid unnecessary diplomatic fallout between Malaysia and China. 

The Philippines trying to act tough against China was cowed when the Chinese sent a few research vessels to the disputed waters. This poor country ravaged by every succeeding corrupt governments has no military capability and its claims on the Spartly's islands based on res nullius is not going to impress China at all of its finders keepers territorial claim.

Territorial disputes are hard to resolve unless both parties are prepared to avoid arm conflicts and use peaceful method to settle the dispute.

Malaysia's dispute with Indonesia over Sipadan and Ligitan Islands was settled in the World Court. Malaysia won the case based on terra nullius, the long occupation, administration and settlement of its people on the island. Sovereignty over territory which is terra nullius may be acquired through occupation.

Former Prime Minister Mahathir Mohammad was smart enough to reclaim Layany-Layang in the Spratlys and stationed the navy there. He later allow a holiday resort to be built on the  island. He did it before other countries could lay claim to the island, which was an atoll, reclaimed to form a small island. It is now one of the top dive sites in the region. 

With its aggressive territorial claims spanning the whole of the China sea, from Japan right down to the Paracels and the Spratlys, China will soon have no friends in Asia. Any flare up with any of the countries would not be in China's favour.

China has territorial disputes over the Spratly Islands with Vietnam, Taiwan, Philippines, Malaysia and Brunei. In the North China Sea it has disputes with Japan and South Korea.

Uncle Sam will not hesitate to give support to any of those countries in the event China is stupid enough to use military force to settle the dispute.

During her recent visit to Bangladesh, Secretary of State Hilary Clinton was rumoured to have discussed with Bangladesh President the possibility of setting up another base for the Seventh Fleet for strategic reason, though, they already have a Naval Support Facility for ships and submarines in the Indian Ocean at Diego Garcia. 

This move, true or not, is probably to checkmate the Chinese growing naval presence in the Indian Ocean and to counter China's ambition to set up base in the region.


USS John C.Stennis

The US Seventh Fleet have increased deployment of its ships in the region and as far south as in the South China Sea sent its naval ships regularly on pretext of friendly visits to friendly countries.


USS Makin Island docked at KK Sepangar Naval base

As component force of the US Pacific Fleet it has 50 to 60 ships including aircraft carriers with 350 aircrafts, with bases in Guam, Japan and to lesser extent, Singapore.

Kota Kinabalu, recently had the rare honour of the visit of USS John C Stennis, a Nimitz-class aircraft carrier that formed part of the US Pacific Strike Force. 


Jump jets and gunships on USS Makin Island

A few months back the city also received another US naval ship, a Wasp-class amphibious assault ship USS Makin Island docked at KK Sepangar Naval port. 


USS Makin Island

"Ships like these are sent all over the world really to do two things; one of them to reassure our friends that we support them and Malaysia is an important friend" said the captain of USS John C.Stennis.


A Sea-Knight helicopter on USS Makin Island

That may be just a small part of the truth, the bigger grand plan is gunboat diplomacy and show of force against China rising naval power in the region.


Kuala Lumpur

Friday, December 19, 2008

Good God ! Are We Dumb ?

Hantu Laut

Being a businessman for many decades and dealing with the intricacies of the banking system, international trade and UCP rules(Uniform Customs and Practice) for Documentary Credits and reading the frivolity of the explanation given by the private secretary to the Yang DiPertuan Besar of Negeri Sembilan Tuanku Jaafar goes to show that the private secretary has little grasp of how the banking system operates.

It is true Tuanku Jaafar didn't take a direct loan from the bank but he has irrevocably committed himself to pay the amount of the Standby Letter of Credit in the event of a drawdown.

Standard Chartered Bank(SCB) must have with the agreement of Tuanku Jaafar issued an 'Irrevocable Standby Letter of Credit' to Connecticut Bank of Commerce (CB) for a specified validity period which means the LC cannot be revoked before its expiry or without expressed consent of the beneficiary. Tuanku Jaafar has also agreed to pledge his fixed deposit as security to SCB which is also irrevocable.

A Standby LC is a form of guarantee issued by banks to other banks either for a third party specific performance or for the beneficiary bank to give credit to a third party whom the beneficiary bank may not be comfortable with unless the party concerned can provide tangible security usually in the form of 'Banker's Guarantee'.A Standby LC instead of 'Letter of Guarantee' is the preferred instrument if the transaction is in a foreign country.

Other instrument used to make advance payment to a third party overseas is 'Red Clause Letter of Credit', mainly used for short-term trade transactions where the supplier may need additional working capital to complete the goods purchased by an overseas buyer.Such arrangement is only possible between parties that have long term business relationship and trust each other.

By the arrangement with SCB Tuanku Jaafar become a guarantor to any liability incurred under the Standby LC.Disputes about the beneficiary’s right to draw should be settled outside the letter of credit transaction.It means SCB cannot become a party in the dispute.

An injunction issued by the Seremban High Court and served on CB which is in America may not be enforceable.

The statement further said “It is clear from the facts that Tuanku Ja’afar did take steps to rescind the LC and prevent a call on the LC before any alleged funds were released by CB to Texas Encore. Despite these steps, CB called on the LC and payment was made by the bank,”.You can't legally rescind something that clearly says 'Irrevocable'.

It is not about Tuanku Jaafar took a loan or not from the bank, it is about probity, that's why the court ruled in favour of SCB.