DOW 7000+ & WHAT NORTH KOREA'S UP TO!

By J. Adams
February 18th, 1997

6/19 UPDATE

Spirit Of Truth Stock Market Update Unreported Truth



                      DOW 7000+ & A KOREAN WAR?!

                               J. Adams
                          February 18th, 1997

    The Dow reached a new record high today about a percent above  the 
psychologically  important  7000  mark  as investors expectations have 
reached a new irrational extreme.  As I've been pointing out for  some 
time  now,  when  the  DJIA  reaches  thousand marks it often reverses 
substantially,  usually in  connection  with  some  sort  of  negative 
historical event: 

                          -The Coming Shock-

       Remarkably,  each time the  DJIA  reversed  significantally 
    from  psychologically  important  thousand  marks in the past, 
    negative historical events occurred that  fit  the  associated 
    reversal  in  investors'  expectations and therefore seemingly 
    "caused" the stock market  to  decline.  Each  time  the  DJIA 
    reversed  from the "Magic 1000" barrier between 1966 and 1982, 
    there were all kinds of troubles which  emerged  ranging  from 
    OPEC oil embargoes,  to the Vietnam War, to Watergate.  One of 
    the most notable cases occurred in October of  1973  when  the 
    DJIA  rose  to  just  below  Dow  1000 as the Arabs launched a 
    surprise attack against Israel which, in turn,  led to a major 
    East/West  confrontation  and  an Arab oil embargo against the 
    West.   Consequently,  the  world  economy  entered  a  severe 
    contraction  and stock prices plunged.  In the summer of 1990, 
    just after the DJIA reversed from 3000,  Iraq  invaded  Kuwait 
    thereby  triggered  a  Persian Gulf crisis and major oil-shock 
    that "caused" the world economy to slip into a  recession  and 
    stock prices to plunge.  Lastly,  right after the Dow reversed 
    from the 4000 mark in January of 1994,  the  Fed  unexpectedly 
    hiked  interest rates and the stock market entered a year-long 
    correction.  
       If this historical pattern is going to repeat  here,  then, 
    in the wake of a reversal from Dow 7000,  some sort  of  world 
    crisis might erupt.  

    As  can  be  surmised from a glance at recent news headlines,  one 
possible source of a "shock" to investors' expectations that might  be 
associated  with a reversal from Dow 7000 is an outbreak of war on the 
Korean Peninsula: 

                       WHAT NORTH KOREA'S UP TO!

                               J. Adams
                          February 18th, 1997

                
Recent news articles raise some interesting questions about the newest 
North Korean defection crisis: 

1.  Given that the defector Hwang Chang-yop developed the North Korean 
philosophy of "Juche", or self-reliance,  why was he sent on a mission 
to  elicit help,  particularly in the form of food-aid,  from Japan- a 
country considered by North Koreans  to  be  an  ultimate  imperialist 
enemy?  

2.  Why didn't Hwang defect in Japan- where he was  for  a  couple  of 
weeks  prior to stopping by China- instead of Beijing,  since China is 
closely allied with Pyongyang and could send him back to North Korea?  

3.  If Hwang was closely surrounded by North Korean agents in Japan to 
stop him from defecting,  why was he able to casually jump into a taxi 
in  Beijing  and  drive to the South Korean embassy?  And if the North 
Korean leadership was aware Hwang Chang-yop might defect, why did they 
send him on an trip to Japan and China where he could  seek  political 
asylum and thereby create a dangerous political crisis in Pyongyang?  

4.  If Hwang knows there are tens of thousands of N.  Korean agents in 
South Korea that had infiltrated the South Korean political,  military 
and intelligence establishments to a high level, why did he reveal his 
intent to defect to South Korean contacts for upwards of a year before 
actually   attempting   to   defect?   Wouldn't   he  realize  he  was 
jeaporadizing  his  chances  of  success  or  of  even  receiving   an 
opportunity to defect?  

5.  Is  it  a  coincidence  that the newest Korean defection crisis is 
occurring at the time of the  most  important  North  Korean  holiday- 
i.e.,  the birthday of Kim Jong-Il,  and at a time that Chinese leader 
Deng Xiaoping appears to be on his death-bed?  

6. What was Hwang's meetings with Vladimir Zhirinovsky in 1994 and the 
Central Committee of the Soviet Union  under  Gorbachev  in  1987  all 
about?  

                     So what is North Korea up to?  

    Clearly  the  defection of the North Korean Communist leader Hwang 
Chang-yop makes little sense.  Indeed,  there  is  reason  to  believe 
that,  in reality, Hwang Chang-yop, the Communist leader who developed 
the  North  Korean  philosophy  of  Juche  that  emphasizes   complete 
obedience of North Korea's leader,  is defecting because he is obeying 
the orders  of  his  "Dear  Leader"  Kim  Jong-Il.  The  circumstances 
surrounding  the  defection suggest the defection is being staged (and 
rather sloppily  at  that),  i.e.,  this  top  Communist  official  is 
attempting  to  defect  to  South  Korea as part of some sort of North 
Korean plan.  

                     And what is Pyongyang's plan?

    As  I  have  long  been  warning,  North  Korea is preparing for a 
massive invasion of South Korea.  Final  preparations  may  have  been 
completed  during  the  past couple of months.  If so,  then the North 
might  be  planning to attack the South before spring thaw since right 
now rivers and rice paddies along the DMZ are frozen such  that  North 
Korean  tanks  and tracked vehicles can manuever off roads and thereby 
most easily roll into South Korea (see "Weather Factors" in  the  1994 
U.S.  News and World Report article,  "The  Most  Dangerous  Place  On 
Earth", 6/20/94).  
    North Korea's most recent war preparations are overviewed  in  the 
following  excerpt  from  a February 16th Toronto Sun article,  'North 
Korean Kettle Threatens to Boil Over', written by Eric Margolis: 

       The North has backed up (recent) threats by steadily moving 
    combat  forces towards the Demilitarized Zone (DMZ) separating 
    the two Koreas.  Since December (1996), Pyongyang has deployed 
    100 MiG fighter-bombers to hardened air bases 20-30  km  north 
    of  the  DMZ.  These aircraft can reach South Korea's capital, 
    Seoul,  six minutes after takeoff,  and are clearly positioned 
    for surprise attack.  
         North  Korea  has  also been beefing up its ground forces 
    near the  DMZ.  Late  last  year  (1996),  it  created  a  new 
    mechanized  corp  tasked with striking down South Korea's east 
    coast.  New 170mm self-propelled guns have been deployed  just 
    north  of  the  DMZ,  from  where they can hit Seoul.  Equally 
    alarming,  the North continues  to  add  new  AN-30  transport 
    aircraft  to  its growing fleet of 300.  Each of these fabric-
    bodied planes,  almost invisible to radar,  carry 13 commandos 
    whose  mission  is  to  deliver surprise,  suicide assaults on 
    South Korean and U.  S.  airbases.  North  Korea  has  between 
    88,000  and  100,000  commandos,  the  world's largest special 
    warfare corps.  
       South Korean intelligence reports the North  has  at  least 
    two  plutonium  nuclear  weapons and is close to deploying new 
    Rodong-1 missiles, capable of delivering nuclear, chemical and 
    biological warheads  to  South  Korea,  Okinawa,  and  western 
    Japan.  
       Much  of  the food aid recently delivered to North Korea by 
    the U.S.,  South Korea,  Japan and international organizations 
    has  been  diverted  to  the  North  Korean  military,   which 
    continues to build vast warstocks of food, fuel and munitions.  
    As so often in Asia, soldiers eat while peasants starve.  

    Given these potentially final preparatory steps,  all North  Korea 
needs to launch an attack is some sort of pretext.  This might explain 
Hwang Jang-yop's recent defection in Beijing.  The defection of such a 
high-level  North Korean Communist Party leader creates the image that 
the political hierarchy in Pyonyang is crumbling  and  could  implode.  
Consequently,  a  military explosion is now believed to be possible in 
the form of North Korea lashing out militarily against the South. That 
such a danger is perceived is reflected by  how  South  Korean  forces 
have been placed on alert since the defection crisis began last week.  
    The reason the potential for North Korea to unleash an  attack  on 
the  South  is  coinciding  with the potential death of Chinese leader 
Deng  Xiaoping  is  likely  because  what  is  being  planned  between 
Pyongyang, Beijing, and, most importantly, Moscow, is a major regional 
conflict in East Asia.  Thus,  if a second Korean War erupts at a time 
of some sort of power struggle in China,  the rise of a more militant, 
nationalist  Communist  leadership  in Beijing can be staged such that 
American efforts to militarily defend South  Korea  from  North  Korea 
aggression will entail a confrontation between  the  U.S.  and  China.  
This,  in turn,  could be associated with a future Chinese invasion of 
Taiwan and an outbreak of a regional East Asian  conflict  that  would 
completely  tie-up  American  military forces in a distant part of the 
world (of course,  just a second Korean War is sufficient for tying up 
a good portion of U.S. military forces in East Asia).  

    Importantly,  the ulterior motive of future East Asian conflict is 
to open the way for a war in the  Middle  East.  As  explained  in  my 
"Korean Diversion" articles,  with the Korean War in the early-1950's, 
Washington  was worried Moscow,  who had ordered North Korea to invade 
the South,  was seeking to divert U.S.  forces into East Asia so  that 
America would have difficulty defending Europe from a Soviet invasion.  
Similarly,  Moscow is likely seeking now to have North Korea, possibly 
with Chinese-backing,  invade South  Korea  and  precipitate  a  major 
conflict in East Asia that will draw in a huge amount of U.S. military 
forces.  Because  U.S.  forces  will be tied-up in East Asia,  America 
will be unable to come to the defense of Israel and the Middle East in 
the event of an Arab/Russian onslaught.  

----------------------------------------------------------------------

From: elbaum@dircon.co.uk (Leiah and Jason Elbaum)
Date: 97-02-17 13:08:59 EST

Dear IRIS Subscriber,

The  following  commentary  is  reprinted  with  permission  from  The 
Jerusalem Post.  Views expressed are not necessarily those of IRIS  or 
its staff.  

Leiah and Jason Elbaum
IRIS
http://www.netaxs.com/people/iris
====

                         "The Syria-PLO axis"

                    by URI DAN and DENNIS EISENBERG

(The  writers are authors of The Mossad:  Secrets of the Israel Secret 
Service and other books on the Middle East.) 

(February 13)  -  A  thought-provoking  revelation  is  in  store  for 
Binyamin Netanyahu during his visit to President Clinton in Washington 
this week.  

He  will  certainly  be made aware of a secret,  11-page congressional 
report on terrorism and warfare,  drawn up under the  chairmanship  of 
New Jersey congressman Jim Saxton (the report is archived at  the  web 
location- http://www.aci.net/kalliste/mewar.htm ).  

At the heart of the report is a warning about a military pact drawn up 
between Yasser Arafat and the Syrian government toward the end of last 
year, threatening hostilities against Israel.  

One of the key clauses of the Damascus pact says that Arafat's police, 
as  well as his "terrorist armed elements are to be trained" to ignite 
"the Israel interior in case of an escalation in the north." 

The report describes Arafat's rapid construction of a  chain  of  deep 
"command centers, ammunition and weapons storage areas, well-fortified 
to even withstand Israeli bombing and shelling. The PA is accumulating 
large  stockpiles  of  anti-tank and anti-aircraft weapons,  including 
missiles - all forbidden by the Oslo accords." 

Security experts in Israel were already aware of Arafat's importing of 
vast quantities of  cement  from  Israel  into  Gaza,  ostensibly  for 
constructing  housing  and  hospitals.  They  will now find disturbing 
confirmation of their suspicion that what the PLO chief was really  up 
to was building a four-story-deep HQ bunker complex under the ground.  

To  ensure  close cooperation between Arafat and the Syrians,  as laid 
down in the Damascus pact,  joint offices have been opened  in  Beirut 
and  Gaza.  But  the  HQ is in Damascus,  already functioning with the 
blessing of President Assad.  

When we contacted Saxton's Washington office,  we  were  told  by  his 
chief  spokesman:  "The  situation  has  become more serious since the 
report was written.  

"The Syrians have begun distributing weapons in the refugee camps  [in 
southern  Lebanon].  At  the PA's request they have launched intensive 
training of PLO anti-aircraft units." 

The purpose is to train these Palestinian units in the (imminent)  use 
of the growing flow of such heavy weapons, now secretly entering Gaza. 
These cadres will then be infiltrated into Gaza,  where they will take 
command  of  the  local  Palestinian  units  [Arafat's  "police"   and 
"security forces"].  

Even more startling news came from the head of the group that prepared 
Saxton's report: 

"Syrian  military/intelligence  teams  will be infiltrated into the PA 
area,  granted Palestinian identity documents,  and serve as  military 
attaches for training Palestinian forces." 

At  the  same  time,  the Syrians are deploying their own intelligence 
personnel in Gaza  and  in  the  Palestinian  autonomy  in  Judea  and 
Samaria.  These  Syrian personnel control Hamas and the Islamic Jihad, 
under PLO protection.  

Together with the PA,  the Syrians are,  as the  congressional  report 
phrases  it,  setting  up  a  fresh team to "employ ruthless means" to 
eradicate any remnants of Israel's General  Security  Service's  (GSS) 
networks.  This  is  intended  to  "further  harm  Israel's ability to 
prevent and fight terrorism." 

In fact,  so close is the cooperation between Damascus and the PA that 
trusted  Syrian  units  have been ordered "to gather intelligence data 
about Israel, identify and designate targets in the deep Israeli rear, 
and detect any preparations for war.  

"In the event of an eruption of violence in Lebanon or on  the  Syrian 
border,"  the  report  makes clear,  "the Syrian-controlled teams will 
coordinate and lead the Palestinian "contribution" to the war effort." 

And  "it  is  conceivable  that  the  Syrian  teams,  along  with  the 
Palestinians  they  directly control,  will ultimately conduct special 
operations inside Israel in case of a war." 

The Saxton report is,  of  course,  based  on  US  intelligence  data, 
including satellites and other electronic military activity.  It would 
be surprising if much of this information were not  already  known  to 
the GSS.  

The  report  will  surely add weight to the seriousness of the liaison 
between the Syrians and Arafat, and their aggressive intentions.  

Advanced weapons have been smuggled for some time into  Gaza  by  sea, 
despite  efforts by the Israeli navy to blockade the area.  Additional 
arms have been gotten to the PA across the border with Egypt.  

There is clearly concern in our cabinet about the buildup of  Arafat's 
-let's call a spade a spade - military force.  

Despite  his  new  "super-dove" image,  Israeli Foreign Minister David 
Levy was sufficiently alarmed to announce recently that 30  planeloads 
of weapons have been flown from Iran to Damascus.  

The  announcement  forced  US  officials to admit that they have known 
about this for some time.  

European intelligence sources revealed this week that accompanying the 
Iranian-supplied hardware on the planes were training specialists from 
Iran.  The weapons, including advanced rockets capable of reaching the 
Haifa  area  from  Lebanon,  were  sent  on  to  Hizbullah  and  other 
terrorists  training  in  the  southern part of the country and in the 
Bekaa Valley.  

There is little doubt that many of these tools of war are fast  making 
their  way  to Arafat.  But the PLO chief has protested that the speed 
with which his army is being equipped is too slow for him.  

Which is why he is pressing the prime minister as hard as  he  can  to 
complete arrangements for building a seaport in Gaza and an airport in 
the  Dahaniya  area  -  both  to  function  independently  of  Israeli 
inspection.  

Arafat is also pressing for quick implementation of safe  passage  for 
Palestinians and their goods between Gaza and the West Bank.  

It  would not be stretching cynicism too far to understand why this is 
so important to him.  How else can he get the weapons  detailed  above 
into  the  hands  of his fighters in Ramallah,  Hebron,  Bethlehem and 
other points close to Jerusalem and other Jewish areas?  

One heartily hopes that Binyamin Netanyahu,  now in  Washington,  will 
not   repeat   the  total  surrender  that  characterized  the  Hebron 
agreement. But his prevarications over the past few weeks bode ill.  

His already shaky approach to withstanding Syria's demands  for  total 
withdrawal  from  the  Golan  -  an  area  irretrievably linked to the 
security zone in Lebanon  -  has  been  further  weakened  by  Israeli 
Internal    Security    Minister   Kahalani's   suggestion   that   an 
"international force" be allowed to run things up on the Heights.  

Has no one told Kahalani that one useless force is  already  stationed 
there?  

Comments Saxton in his report,  entitled Approaching the New Circle of 
Arab-Israeli Fighting:  "The Clinton administration continues to apply 
pressure  on  Jerusalem to make additional concessions to Mr.  Arafat, 
while ignoring the concurrent developments in the Middle East.  

"Instead of pressuring the democratically-elected government of Israel 
to deviate from the  policies  it  was  elected  for,  the  US  should 
concentrate on helping Israel meet the growing threat of war." 

----------------------------------------------------------------------

              Defense & Foreign Affairs' Strategic Policy
                              April, 1996

                   "Russo-PRC Axis Changes Balance"

                   By Yossef Bodansky, Senior Editor

RUSSIAN  PRESIDENT  Boris  Yeltsin's visit to the People's Republic of 
China (PRC) in late April 1996 may prove a milestone in the  emergence 
of  a  strategic posture in Central Asia which is adverse to the long-
term interests of msia,  India and the West.  This  assumes  that  the 
regional  dynamics  and elations agreed-upon in Shanghai are permitted 
to unfold as currently planned.  Moscow is fully aware of the  adverse 
impact  of  these  agreements  on  the  Russian  national interest and 
strategic posture.  However,  given the  current  economic  plight  of 
Russia and the consequent constraints imposed on its ability to pursue 
its  national  interests,  these arrangements are seen as the least of 
evils.  

Essentially,  the Beijing phase of Yeltsin's trip should be considered 
a  first step in an effort by the two strategic giants -- both feeling 
under pressure from Washington -- to regulate,  better understand  and 
coordinate their respective strategic aspirations and postures.  

Beijing  sees  in  the  visit the beginning of new era in Sino-Russian 
relations with global implications.  PRC Premier Li Peng stressed that 
Beijing  and  Moscow "agree to develop a strategic partnership for the 
21st Century  based  on  equality,  mutual  benefit  and  confidence".  
Beijing  considers the visit as having "far-reaching significance" for 
both Sino-Russian bilateral relations and the overall grand  strategic 
posture in the entire Asia and Pacific regions.  

Boris  Yeltsin  also  highlights  the  global essence of the new Sino-
Russian relations codified during the visit.  Russia and the  PRC  are 
resolved "to cooperate in order to create a new world order,  in which 
there is no place for anyone's claims to a monopoly in world  affairs.  
We  live  in  a  multi-polar world,  and this is a new factor in world 
development," Yeltsin explains.  

Beijing seized on the anti-US sentiments hinted by Yeltsin  to  stress 
this  aspect  of  the  evolving  new  Sino-Russian relations.  Indeed, 
confidential briefings by high PRC  officials  in  Beijing  contrasted 
Yeltsin's  visit with US President Clinton's recent visit to East Asia 
and Moscow.  The PRC officials  stated  that  Beijing  considers  "the 
Yeltsinâ  trip  as  proof  of  Washington's declining influence in the 
region".  

However, from a practical point of view,  the most important bilateral 
negotiations  and  discussions  were  between Russian Foreign Minister 
Yevgeniy Primakov and  PRC  Vice-Premier  and  Foreign  Minister  Qian 
Qichen.  It  was these comprehensive deliberations which led to Russia 
and the PRC reaching the new modalities  of  regional  relations.  The 
Primakov-Qian  negotiations set the real priorities and essence of the 
far-reaching  and  very  important  arrangements  and   understandings 
between Beijing and Moscow.  Chinese officials explained that Primakov 
and Qian agreed that their  countries  will  "oppose  interference  in 
other  countries"  internal  affairs  and  the  attempt  to monopolise 
international affairs':  This  definition  is  clearly  anti-US.  Both 
officials  also  determined  that  "the  future strengthening of Sino-
Russian relations was strategic,  but the seeking of common  interests 
and  close cooperation did not mean that China and Russia will form an 
alliance.  The development of Sino-Russian relations was not  directed 
against any third countries nor did it pose a threat to any country." 

This  point was stressed by the Russian High Command in the context of 
the rapidly expanding Russian weapons sales  to  the  PRC.  "China  is 
interested in buying Russian combat equipment and arms.  And Russia is 
very keen  on  this  since  arms  sales  enable  it  to  keep  defence 
enterprises afloat,  retain science and production cadres, and improve 
technology.  Sometimes the development of  Sino-Russian  military  and 
military-technical  ties  is  interpreted as an attempt to create some 
kind of military alliance.  However,  that is a false  premise.  Sino-
Russian  relations are not aimed against third countries and extensive 
contacts between  the  military  departments  have  always  helped  to 
increase  trust between peoples." The Russian military needs reduction 
of tension in Central Asia and the Far East to  concentrate  attention 
and  assets  on  meeting the Chechen challenge.  Yeltsin's forthcoming 
visit to Chechnya reflects the growing importance of the crisis.  

Taken together,  the bilateral and regional military  arrangements  in 
Central  Asia  (discussed below) will enable reduction of the regional 
Russian  military  activities:   always  beneficial  for  Beijing  and 
Islamabad.  At  the same time,  Beijing placed yet another large order 
for arms -- mainly aircraft and missiles, but also APCs, commumcatlons 
systems,  and sub-systems for tanks and combat vehicles upgrades -- as 
well as nuclear power technology.  

Most  important  is  Beijing's  purchase  of  more  than 26 Su-27s (in 
addition to the previously agreed upon aircraft purchases and transfer 
of production technology).  

The new batch of fighters may be a combination  of  surplus  from  the 
Russian  Air  Force  and diversion of the next aircraft coming off the 
production line at the expense of the Russian Air Force. Such a speedy 
delivery is intended to quickly  give  the  PRC  greater  capabilities 
against  Taiwan  and  in  the  South  China  Sea.  In  response to PRC 
requirements and as  an  inducement  for  additional  weapons  orders, 
Russia  timed  the  arrival  to the PRC of 22 Su-27s -- from the PRC's 
second batch purchased in 1995 -- to coincide with Yeltsin's  stay  in 
Beijing; ie: significantly ahead of the original delivery schedule.  

Meanwhile,  the  most  important part of Yeltsin's visit took place in 
Shanghai:  the summit with the leaders of Kazakhstan,  Kyrgyzstan  and 
Tajikistan  on  joint  security  arrangements  in  Central  Asia.  PRC 
officials said that Beijing  had  two  objectives  in  these  regional 
arrangements:  (1)  to  contain the Islamist surge,  and (2) to create 
regional strategic dynamics  which  would  neutralise  the  Russian  - 
Indian alliance by default.  For Beijing,  the essence of the regional 
dynamics is legitimising and authorising a Chinese surge into  Central 
Asia,  in  all  but two areas considered Russian monopolies:  internal 
security and military affairs.  

On April 26, the presidents of China, Russia,  Kazakhstan,  Kyrgyzstan 
and  Tajikistan signed a confidence-building military treaty to reduce 
tensions along common borders.  The treaty codifies and regulates  the 
deployment  of military forces within a 100km stretch on both sides of 
the old Sino-Soviet border,  provides for mutual verification of major 
force  deployments and movements,  as well as limit the ability of the 
signatories to concentrate major  forces  in  this  stretch  even  for 
previously-scheduled  exercises.   In  a  joint  statement,  the  five 
presidents hailed the  importance  of  the  treaty  to  "strengthening 
confidence in the military field in the border areas".  Significantly, 
this  treaty  has no time limit,  remains effective as long as the PRC 
and any one of the other former Soviet states continues  to  recognise 
it.  The  treaty  permits  any party to withdraw following six months' 
notice that gives the other signatories ample time to adjust their own 
military deployments.  

The speedy reduction of military forces in Central Asia  and  the  Far 
East  border  with  Rus  sia  enables the PLA to divert more troops to 
active preparations for escalation against  Taiwan.  The  PLA's  best-
trained, led and equipped combined-arms units are in the Xinjiang area 
and the north-west regions. Their availability bolsters implementation 
of  the  initial  lessons  of the recent round of anti-Taiwan military 
exercises in the Nanjing War Theatre.  

Senior military sources in Beijing said that  the  exercises  revealed 
two  key  deficiencies  in  the  PLA  which prevented further military 
actions: 

* There was a clear inability of troops from the interior to cope with 
amphibious operations without thorough conditiotling of  the  personnd 
as individuals.  Not only must soldiers learn to swim to overcome fear 
of water, but during preparatory drills, these units suffered numerous 
fatalities due to hypothermia and drowning.  

* There were opposite problems with the local troops  of  the  Nanjing 
War  Theatre  in  protracted combat operations in mountains as well as 
built-up and fortified zones.  The region's troops trained too much in 
amphibious  operations  to the point of deterioration of other skills.  
This loss was aggravated by the rotation of draftees.  

In the exercises,  all PLA units assigned to the Nanjing  War  Theatre 
were  slow  and  inefficient in developing offensive to the depth from 
the efficiently- and swiftly-established bridgeheads.  The local units 
had  problems  implementing  orders  while  the  interior  units  were 
debilitated by the time they reached the beachheads.  Hence,  the  PLA 
High  Command  ordered a remedial series of on-land exercises starting 
late May,  so that units can catch-up and be ready for the invasion of 
Taiwan.  The highly-trained and well-equipped units from Xinjiang will 
form a core of the high-performance invasion force that will leap from 
the beachheads (established by the Nanjing-based forces) and  confront 
the main Taiwanese forces.  

The  key  to  the  new  posture  in  Central  Asia,  however,  is  the 
unprecedented regional agreement  to  combat  Islamists.  Despite  its 
close strategic alliance with Iran and Pakistan,  the PRC is pushed by 
the deteriorating situation in Xinjiang.  The  continued  exposure  to 
Iran,  Pakistan,  and  cross-border  relations  with  Turkestan,  have 
already resulted in the rise, albeit fledgling,  of an Uighur Islamist 
movement  with subversive and nationalist tendencies.  Beijing is also 
apprehensive by  the  emergence  of  the  Free  East  Turkestan  (FET) 
movement  in  the  West  because it is already getting recognition and 
support from some conservative elements of the International  Islamist 
Movement in Europe and the Persian Gulf states.  The overall trend has 
pushed Beijing to act.  

PRC intelligence officials increasingly express concern about the zeal 
of  the  surge  by   Pakistan's   Inter-Service   Intelligence   (ISI) 
organisation into Tajikistan and Central Asia.  Beijing is worried not 
so much about "angering" Moscow, but by the the regional ramifications 
of the ISI's creation of a point of leverage over  Beijing.  This  has 
been  Islamabad's  objective  in  surging into Central Asia.  Tacitly, 
Beijing hopes to  see  Russia  contain  Pakistan  without  endangering 
further  consolidation  of  the  Trans-Asian  Adds  through political, 
military and commercial activities rather than Islamic revivalism.  

On April 29, Qian Qichen announced that the PRC,  Russia,  Kazakhstan, 
Kyrgyzstan  and Tajikistan reached "an understanding to join forces to 
combat the  spread  of  fundamentalist  Islamic  movements"  in  their 
respective coun tries and the region. "We are opposed to terrorist and 
separatist  activities  by  some  fundamentalists because religion and 
politics are two separate issues," Qian told Reuters.  "Many  problems 
can  arise  if  religion  is  used  to  engage  in  politics." The PRC 
considered this agreement as an instrument for joint operations.  

"We have an understanding with Kazakhstan,  Kyrgyzstan and others that 
we  should  work  together  to  fight against separatist and terrorist 
activities and oppose fundamentalist activities." Qian alluded to  the 
growing Islamist challenge in Xinjiang,  acknowledging that Beijing is 
already  "very  vigilant  against   fundamentalist,   separatist   and 
terrorists  activities coming from abroad".  He added:  "The market in 
China for such activities is very small".  It is significant  that  in 
his remarks,  Qian dropped mentioning Tajikistan,  although a party to 
the agreement.  This was in order not to alienate Pakistan  whose  ISI 
strongly  supports  the  local  Islamist forces from bases in northern 
Afghanistan.  

The new regional arrangements  do  not  affect  the  growing  flow  of 
nuclear  and  strategic goods from Russia and Central Asia to Pakistan 
and Iran via Afghanistan.  Conducted on "friendly territory" in  their 
entirety,  these  new  shipment routes permit the ordinary acquisition 
and delivery of weapon systems, strategic materials,  as well as other 
strategic  technologies  and  goods,  along with technical support and 
experts.  At the current  pace,  this  flow  would  revolutionise  the 
nuclear  capabilities  of the benefiting states -- Pakistan,  Iran and 
the PRC -- in two years by providing for a  leap  of  a  technological 
generation.  The  Pakistanis  and  Iranians  share their technological 
acquisitions with the PRC as an integral component of  their  military 
nuclear cooperation.  

The  initial  impact of this newly-acquired nuclear weapons technology 
and sub systems may already be reflected in  the  forthcoming  nuclear 
tests in the PRC.  Despite a heavy political "price" Beijing is moving 
ahead with a revived test programme for both May and September-October 
1996.  Ignoring Beijing's official  definition  of  "peaceful  nuclear 
explosions", Chinese officials explained that it is imperative for the 
PLA  to  actually  test new and markedly improved warheads before they 
are adopted for production  and  operational  deployment.  Considering 
that  the  1995  successful nuclear tests were also aimed at verifying 
new warhead technology prior to a cancellation of  further  tests  for 
political reasons, the new tests cannot but be explained by the urgent 
need  to  verify  the operability of recently acquired and adopted new 
warhead technologies.  

Given the evolutionary character of the  Chinese  warhead  development 
effort  since  the late 1980s,  these technologies must have come from 
foreign sources: the former Soviet Union.  

Thus,  the new anti-Islamist agreement fails  to  address,  let  alone 
reverse,  the  most dangerous aspect of the Islamic bloc activities in 
the TransAsian Axis: the rise of Islamist nuclear capabilities.  Since 
Beijing is the undisputed leader of the Trans-Asian Axis,  the PRC has 
no reason to fear these  strategic  dynamics.  Other  regional  powers 
should be apprehensive.  

Meanwhile,  the importance of the new strategic posture as a result of 
Yeltsin's visit to the PRC is already apparent to the  region's  other 
powers.  Most significant is their reaction to the Sino-Russian effort 
to marginalise the role of the US as  a  primary  strategic  actor  in 
Asia.  

The  most  explicit  recognition of this new reality has "already come 
from Tokyo.  Japan,  ever super-sensitive to the undercurrents of Fast 
Asia,  reacted swiftly to the emerging strategic environment.  Despite 
the still reverberating aftermath of US  President  William  Clinton's 
official  visit  which  dealt  with  mutual security cooperation,  the 
Japanese would not wait a single day.  On  April  28,  Tokyo  sent  to 
Moscow a high-level defence delegation led by Hideo Usui, chief of the 
Japanese  Defence  Agency.  The  delegation  was instructed to inspect 
Russian military units and weapons,  and hold "frank  discussions"  on 
Russo-Japanese  defence relations.  The fate of the Kuril Islands -- a 
lingering  point  of  contention  between  Tokyo  and  Moscow  --  was 
completely ignored.  

Instead, Hideo Usui stressed that his charter was to "actively develop 
Russo-Japanese  ties"  and  "raise  the  level  of  trust  between our 
countries." The Japanese acknowledged their sense of urgency  in  view 
of  recent developments in the Asia-Pacific region.  Tokyo is so eager 
to please Moscow,  that the Hideo Usui delegation went so  far  as  to 
officially  express  Japan's  willingness  to  invest  in  the Russian 
defence industries, mainly aerospace, through the purchase of fighters 
and missiles  at  inflated  prices.  Tokyo  asked  Russia  for  formal 
proposals  to  purchase MiG-29 and Su-27 fighters,  as well as several 
batteries of the S-300 long-range SAM/ATBM.  

With a Russian threat at least temporarily removed,  the ascendancy of 
the PRC as a regional hegemon will be much faster.  So Tokyo rushed to 
embrace the only other regional power capable of  interceding  on  its 
behalf with Beijing should the need arise: Russia.  

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                      ARTICLES FOR FAIR USE ONLY 
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For current news on the former Soviet Union and Russia see:

http://wp2.washingtonpost.com/wp-srv/inatl/exussr.htm
http://www.nd.edu/~astrouni/zhiwriter/

For current news on the Middle East and Iraq see:

http://wp2.washingtonpost.com/wp-srv/inatl/mideast.htm
http://www.emet.com/house.htm

For current news on the Balkans see:

http://wp2.washingtonpost.com/wp-srv/inatl/longterm/worldref/country/serbia.htm
http://wp2.washingtonpost.com/wp-srv/inatl/longterm/worldref/country/bosniahz.htm

For current news on Korea see:

http://wp2.washingtonpost.com/wp-srv/inatl/longterm/worldref/country/nkorea.htm
http://www.kimsoft.com/dprk.htm



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