Afghanistan Special: Exposing the Trail of Drug Money --- Who's Involved?

Julian Mercille, our colleague at University College Dublin, investigates the politics and conflict behind Afghanistan's drug production and profits, involving not only the Taliban but also other Afghan groups, the US military, and NATO forces:

As United States President Barack Obama and his advisors debated future troop levels for Afghanistan - which resulted in the decision to send an additional 30,000 troops - a new report by the United Nations Office on Drugs and Crime (UNODC) muddied the water on one of the most important issues in the debate - the effects of Afghanistan's drug production.

The report, entitled "Addiction, Crime, and Insurgency: The Transnational Threat of Afghan Opium," gives the false impression that the Taliban are the main culprits behind Afghanistan's skyrocketing drug production. It also implies that drugs are the main reason why the Taliban are gaining in strength, absolving the United States and North Atlantic Treaty Organization (NATO) of their own responsibility in fomenting the insurgency.

In fact, the United States and its Afghan allies bear a large share of responsibility for the drug industry's dramatic expansion since the invasion. Buried deep in the report, its authors admit that reduced levels of drug production would have little effect on the insurgency's vigor.

The following annotation rebuffs some of the report's main assertions, puts in perspective the Taliban's role in the opium economy and highlights US/NATO responsibility for its expansion and potential reduction.

Taliban insurgents draw some US$125 million annually from drugs, which is more money than 10 years ago, [and as a result] the perfect storm of drugs and terrorism, that has struck the Afghan/Pakistani border for years, may be heading towards Central Asia. A big part of the region could be engulfed in large-scale terrorism, endangering its massive energy resources.

These claims are supposed to make us shudder in the face of an impending narco-terrorist seizure of a large chunk of the world's energy resources. UNODC states that a decade ago the Taliban earned $85 million per year from drugs, but that since 2005 this figure has jumped to $125 million. Although this is pitched as a significant increase, the Taliban play a more minor role in the opium economy than UNODC would have us believe and drug money is probably a secondary source of funding for them. Indeed, the report estimates that only 10-15% of Taliban funding is drawn from drugs and 85% comes from "non-opium sources".

The total revenue generated by opiates within Afghanistan is about $3.4 billion per year. Of this figure, according to UNODC, the Taliban get only 4% of the sum. Farmers, meanwhile, get 21%.

And the remaining 75%? Al-Qaeda? No: The report specifies that it "does not appear to have a direct role in the Afghan opiates trade", although it may participate in "low-level drugs and/or arms smuggling" along the Pakistani border.

Instead, the remaining 75% is captured by government officials, the police, local and regional power brokers and traffickers - in short, many of the groups now supported (or tolerated) by the United States and NATO are important actors in the drug trade.

The New York Times recently revealed that Ahmed Wali Karzai, President Hamid Karzai's brother, has long been on the Central Intelligence Agency's (CIA's) payroll, in addition to his probable shady dealings in drugs. But this is only the tip of the iceberg, as US and NATO forces have long supported warlords, commanders and illegal militias with a record of human-rights abuses and involvement in narcotics. A former CIA officer said, "Virtually every significant Afghan figure has had brushes with the drug trade." According to a New York University report, General Nazri Mahmad, a warlord who "control[s] a significant portion of the province's lucrative opium industry," has the contract to provide security for the German Provincial Reconstruction Team.

UNODC insists on making the Taliban-drugs connection front-page news while not chasing with the same intensity those supported by Washington. The agency seems to be acting as an enabler of US/NATO policies in Afghanistan.

When I asked the UNODC official who supervised the report what percentage of total drug income in Afghanistan was captured by government officials, the reply was quick: "We don't do that, I don't know."

Instead of pointing a finger directly at the US/NATO-backed government, the report gives the impression that the problem lies mostly with rotten apples who threaten an otherwise well-intentioned government.

But the roots of Afghanistan's upsurge in drug production since 2001 are directly related to US policies and the government that was installed in the wake of the invasion. The United States attacked Afghanistan in 2001, in alliance with anti-Taliban warlords and drug lords, showering them with millions of dollars and other forms of support. The empowerment and enrichment of the warlords with whom the US allied itself enabled them to tax and protect opium traffickers, leading to the quick resumption of opium production after the hiatus of the 2000 Taliban ban.

To blame "corruption" and "criminals" for the state of affairs is to ignore the direct and predictable effects of US policies, which have simply followed a historical pattern of toleration and empowerment of local drug lords in the pursuit of broader foreign policy objectives, as Alfred McCoy and others have documented in detail.

Impunity for drug lords and warlords continues: a US Senate report noted in August that no major traffickers have been arrested in Afghanistan since 2006, and that successful prosecutions of significant traffickers are often overturned by a simple bribe or protection from above, revealing counter-narcotics efforts to be deficient at best.

Identifying drugs as the main cause behind Taliban advances absolves the US/NATO of their own responsibility in fomenting the insurgency: their very presence in the country, as well as their destructive attacks on civilians account for a good deal of the recent increase in popular support for the Taliban.

In fact, buried deep in the report, its authors admit that reducing drug production would have only "minimal impact on the insurgency's strategic threat". The Taliban receive "significant funding from private donors all over the world", a contribution which "dwarfs" drug money. Although the report will be publicized by many as a vindication of calls to target the opium economy in order to weaken the Taliban, the authors themselves are not convinced of the validity of this argument.

Of the $65 billion turnover of the global market for opiates, only 5-10% ($3-5 billion) is estimated to be laundered by informal banking systems. The rest is laundered through legal trade activities and the banking system.

This is an important claim that points to the enormous amounts of drug money swallowed by the world financial system, including Western banks.

The report says that over the last seven years (2002-2008), the transnational trade in Afghan opiates resulted in worldwide sales of $400-$500 billion (retail value). Only 5-10% of this is estimated to be laundered by informal banking systems (such as hawala). The remainder is laundered through the legal economy, and importantly, through Western banks.

In fact, Antonio Maria Costa was quoted as saying that drug money may have recently rescued some failing banks: "Interbank loans were funded by money that originated from drug trade and other illegal activities", and there were "signs that some banks were rescued in that way". "At a time of major bank failures, money doesn't smell, bankers seem to believe," he wrote in UNODC's 2009 World Drug Report (emphasis in original).

Afghanistan has the world monopoly of opium cultivation (92%), the raw material for the world's deadliest drug - heroin, [which is] causing up to 100,000 deaths per year.

Tobacco is the world's deadliest drug, not heroin, and kills about five million people every year. According to the World Health Organization, if present tobacco consumption patterns continue, the number of deaths will increase to 10 million by the year 2020. Some 70% of these will be in developing countries, which are the main target of the tobacco industry's marketing ploys. So why does the Taliban get more flak than tobacco companies?

The report estimates there are 16 million opiate users across the world, with the main consumer market being Europe, valued at $20 billion. Europeans are thus the main source of funding for the Afghan drug industry and their governments share a significant part of responsibility for failing to decrease demand and provide more treatment services within their own borders. Lowering drug use in Europe would contribute significantly to reducing the scale of the problem in Afghanistan.

Moreover, the report notes that NATO member Turkey is a "central hub" through which Afghan opiates reach Europe. Perhaps NATO should direct its efforts towards its own members before targeting the Taliban.

Some Taliban networks may be involved at the level of precursor procurement. These recent findings support the assertion that the Taliban network is more involved in drug trafficking than previously thought.

Yes, the Taliban surely take a cut out of the precursor trade (the chemicals needed to refine opium into products like heroin and morphine).

However, Western countries and some of their allies are also involved: The report identified "Europe, China and the Russian Federation" as "major acetic anhydride sources for Afghanistan". For instance, 220 liters of acetic anhydride were intercepted this year at Kabul airport, apparently originating from France. In recent years, chemicals have also been shipped from or via the Republic of Korea and UNODC's 2008 Afghan Opium Survey pointed to Germany as a source of precursors.

It is unclear what the total value of the Afghan trade in chemical precursors is, but from the report's data it can be inferred that the retail value of just one precursor, acetic anhydride, was about $450 million this year. Part of that money goes back to Western chemical corporations in the form of profits. Tighter safeguards should be in place on these products.

Areas of opium poppy cultivation and insecurity correlate geographically. In 2008, 98% of opium poppy cultivation took place in southern and western Afghanistan, the least secure regions.

UNODC associates drugs with the Taliban by pointing to the fact that most poppy cultivation takes places in regions where the Taliban are concentrated. Maps show "poppy-free" provinces in the north and a concentration of cultivation in the southern provinces, linking the Taliban with drugs.

It is true that cultivation is concentrated in the south, but such maps obscure the fact that there is plenty of drug money in the north, a region over which the Afghan government has more control. For instance, Balkh province may be poppy-free, but its center, Mazar-i Sharif, is awash in drug money. Nangarhar was also poppy-free in 2008, although it still remains a province where a large amount of opiates is trafficked.

Some Western officials are now implying that political elites in northern Afghanistan are engaging in successful counter-narcotics while the southern drug economy expands. But the fact is that although the commanders who control northern Afghanistan today may have eliminated cultivation, none have moved against trafficking. Most of them continue to profit from it, and some are believed to have become millionaires.

Afghanistan: The 9 Surges of Mr Obama's War

Tom Englehardt, writing at TomDispatch, goes beyond the headline "30,000 extra troops" of President Obama's recent announcement to detail the extent of the US escalation and long-term commitment --- despite Obama's initial declaration of a "beginning to the end" of the military presence in July 2011 --- to the intervention in Afghanistan (N.B.: All links in original article):

In his Afghan “surge” speech at West Point last week, President Obama offered Americans some specifics to back up his new “way forward in Afghanistan.” He spoke of the “additional 30,000 U.S. troops” he was sending into that country over the next six months. He brought up the “roughly $30 billion” it would cost us to get them there and support them for a year. And finally, he spoke of beginning to bring them home by July 2011. Those were striking enough numbers, even if larger and, in terms of time, longer than many in the Democratic Party would have cared for. Nonetheless, they don’t faintly cover just how fully the president has committed us to an expanding war and just how wide it is likely to become.

A Gut Reaction to Obama’s Afghanistan-Pakistan Speech: The Halfway House of The Long War

Despite the seeming specificity of the speech, it gave little sense of just how big and how expensive this surge will be. In fact, what is being portrayed in the media as the surge of November 2009 is but a modest part of an ongoing expansion of the U.S. war effort in many areas. Looked at another way, the media's focus on the president’s speech as the crucial moment of decision, and on those 30,000 new troops as the crucial piece of information, has distorted what’s actually underway.

In reality, the U.S. military, along with its civilian and intelligence counterparts, has been in an almost constant state of surge since the last days of the Bush administration. Unfortunately, while information on this is available, and often well reported, it’s scattered in innumerable news stories on specific aspects of the war. You have to be a media jockey to catch it all, no less put it together.

What follows, then, is my own attempt to make sense of the nine fronts on which the U.S. has been surging, and continues to do so, as 2009 ends. Think of this as an effort to widen our view of Obama’s widening war.

Obama’s Nine Surges

1. The Troop Surge: Let’s start with those “30,000” new troops the president announced.

First of all, they represent Obama’s surge, phase 2. As the president pointed out in his speech, there were “just over 32,000 Americans serving in Afghanistan” when he took office in January 2009. In March, Obama announced that he was ordering in 21,000 additional troops. Last week, when he spoke, there were already approximately 68,000 to 70,000 U.S. troops in Afghanistan. If you add the 32,000 already there in January and the 21,700 actually dispatched after the March announcement, however, you only get 53,700, leaving another 15,000 or so to be accounted for. According to Karen DeYoung of the Washington Post, 11,000 of those were “authorized in the waning days of the Bush administration and deployed this year,” bringing the figure to between 64,000 and 65,000. In other words, the earliest stage of the present Afghan “surge” was already underway when Obama arrived.

It also looks like at least a few thousand more troops managed to slip through the door in recent months without notice or comment. Similarly, with the 30,000 figure announced a week ago, DeYoung reports that the president quietly granted Secretary of Defense Robert Gates the right to “increase the number by 10 percent, or 3,000 troops, without additional White House approval or announcement.” That already potentially brings the most recent surge numbers to 33,000, and an unnamed “senior military official” told De Young “that the final number could go as high as 35,000 to allow for additional support personnel such as engineers, medevac units and route-clearance teams, which comb roads for bombs.”

Now, add in the 7,500 troops and trainers that administration officials reportedly strong-armed various European countries into offering. More than 1,500 of these are already in Afghanistan and simply not being withdrawn as previously announced. The cost of sending some of the others, like the 900-plus troops Georgian President Mikhail Saakashvili has promised, will undoubtedly be absorbed by Washington. Nonetheless, add most of them in and, miraculously, you’ve surged up to, or beyond, Afghan War commander General Stanley McChrystal’s basic request for at least 40,000 troops to pursue a counterinsurgency war in that country.

2. The Contractor Surge: Given our heavily corporatized and privatized military, it makes no sense simply to talk about troop numbers in Afghanistan as if they were increasing in a void. You also need to know about the private contractors who have taken over so many former military duties, from KP and driving supply convoys to providing security on large bases. There’s no way of even knowing who is responsible for the surge of (largely Pentagon-funded) private contractors in Afghanistan. Did their numbers play any part in the president’s three months of deliberations? Does he have any control over how many contractors are put on the U.S. government payroll there? We don’t know.

Private contractors certainly went unmentioned in his speech and, amid the flurry of headlines about troops going to Afghanistan, they remain almost unmentioned in the mainstream media. In major pieces on the president’s tortuous “deliberations” with his key military and civilian advisors at the New York Times, the Washington Post, and the Los Angeles Times, all produced from copious officially inspired leaks, there wasn't a single mention of private contractors, and yet their numbers have been surging for months.

A modest-sized article by August Cole in the Wall Street Journal the day after the president’s speech gave us the basics, but you had to be looking. Headlined “U.S. Adding Contractors at Fast Pace,” the piece barely peeked above the fold on page 7 of the paper. According to Cole: “The Defense Department's latest census shows that the number of contractors increased about 40% between the end of June and the end of September, for a total of 104,101. That compares with 113,731 in Iraq, down 5% in the same period... Most of the contractors in Afghanistan are locals, accounting for 78,430 of the total...” In other words, there are already more private contractors on the payroll in Afghanistan than there will be U.S. troops when the latest surge is complete.

Though many of these contractors are local Afghans hired by outfits like DynCorp International and Fluor Corp., TPM Muckracker managed to get a further breakdown of these figures from the Pentagon and found that there were 16,400 “third country nationals” among the contractors, and 9,300 Americans. This is a formidable crew, and its numbers are evidently still surging, as are the Pentagon contracts doled out to private outfits that go with them. Cole, for instance, writes of the contract that Dyncorp and Fluor share to support U.S. forces in Afghanistan “which could be worth as much as $7.5 billion to each company in the coming years.”

3. The Militia Surge: U.S. Special Forces are now carrying out pilot programs for a mini-surge in support of local Afghan militias that are, at least theoretically, anti-Taliban. The idea is evidently to create a movement along the lines of Iraq's Sunni Awakening Movement that, many believe, ensured the "success" of George W. Bush's 2007 surge in that country. For now, as far as we know, U.S. support takes the form of offers of ammunition, food, and possibly some Kalashnikov rifles, but in the future we'll be ponying up more arms and, undoubtedly, significant amounts of money.

This is, after all, to be a national program, the Community Defense initiative, which, according to Jim Michaels of USA Today, will “funnel millions of dollars in foreign aid to villages that organize ‘neighborhood watch’-like programs to help with security.” Think of this as a “bribe” surge. Such programs are bound to turn out to be essentially money-based and designed to buy “friendship.”

4. The Civilian Surge: Yes, Virginia, there is a “civilian surge” underway in Afghanistan, involving increases in the number of “diplomats and experts in agriculture, education, health and rule of law sent to Kabul and to provincial reconstruction teams across the country.” The State Department now claims to be “on track” to triple the U.S. civilian component in Afghanistan from 320 officials in January 2009 to 974 by “the early weeks of next year.” (Of course, that, in turn, means another mini-surge in private contractors: more security guards to protect civilian employees of the U.S. government.) A similar civilian surge is evidently underway in neighboring Pakistan, just the thing to go with a surge of civilian aid and a plan for a humongous new, nearly billion-dollar embassy compound to be built in Islamabad.

5. The CIA and Special Forces Surge: And speaking of Pakistan, Noah Shachtman of Wired’s Danger Room blog had it right recently when, considering the CIA’s “covert” (but openly discussed) drone war in the Pakistani tribal borderlands, he wrote: “The most important escalation of the war might be the one the President didn’t mention at West Point.” In fact, the CIA’s drone attacks there have been escalating in numbers since the Obama administration came into office. Now, it seems, paralleling the civilian surge in the Af/Pak theater of operations, there is to be a CIA one as well. While little information on this is available, David E. Sanger and Eric Schmitt of the New York Times report that in recent months the CIA has delivered a plan to the White House “for widening the campaign of strikes against militants by drone aircraft in Pakistan, sending additional spies there and securing a White House commitment to bulk up the C.I.A.’s budget for operations inside the country.”

In addition, Scott Shane of the [New York] Times reports:

The White House has authorized an expansion of the C.I.A.’s drone program in Pakistan’s lawless tribal areas, officials said..., to parallel the president’s decision… to send 30,000 more troops to Afghanistan. American officials are talking with Pakistan about the possibility of striking in Baluchistan for the first time -- a controversial move since it is outside the tribal areas -- because that is where Afghan Taliban leaders are believed to hide.

The Pakistani southern border province of Baluchistan is a hornet’s nest with its own sets of separatists and religious extremists, as well as a (possibly U.S.-funded) rebel movement aimed at the Baluchi minority areas of Iran. The Pakistani government is powerfully opposed to drone strikes in the area of the heavily populated provincial capital of Quetta where, Washington insists, the Afghan Taliban leadership largely resides. If such strikes do begin, they could prove the most destabilizing aspect of the widening of the war that the present surge represents.

In addition, thanks to The Nation magazine’s Jeremy Scahill, we now know that, from a secret base in Karachi, Pakistan, the U.S. Army’s Joint Special Operations Command, in conjunction with the private security contractor Xe (formerly Blackwater), operates “a secret program in which they plan targeted assassinations of suspected Taliban and Al Qaeda operatives, ‘snatch and grabs’ of high-value targets and other sensitive action inside and outside Pakistan.” Since so many U.S. activities in Pakistan involve secretive, undoubtedly black-budget operations, we may only have the faintest outlines of what the “surge” there means.

6. The Base-Building Surge: Like the surge in contractors and in drone attacks, the surge in base-building in Afghanistan significantly preceded Obama's latest troop-surge announcement. A recent NBC Nightly News report on the ever-expanding U.S. base at Kandahar Airfield, which it aptly termed a “boom town,” shows just how ongoing this part of the overall surge is, and at what a staggering level. As in Iraq from 2003 on, billions of dollars are being sunk into bases, the largest of which -- especially the old Soviet site, Bagram Air Base, with more than $200 million in construction projects and upgrades underway at the moment -- are beginning to look like ever more permanent fixtures on the landscape.

In addition, as Nick Turse of TomDispatch.com has reported, forward observation bases and smaller combat outposts have been sprouting all over southern Afghanistan. “Forget for a moment the ‘debates’ in Washington over Afghan War policy,” he wrote in early November, “and, if you just focus on the construction activity and the flow of money into Afghanistan, what you see is a war that, from the point of view of the Pentagon, isn't going to end any time soon. In fact, the U.S. military's building boom in that country suggests that, in the ninth year of the Afghan War, the Pentagon has plans for a far longer-term, if not near-permanent, garrisoning of the country, no matter what course Washington may decide upon.”

7. The Training Surge: In some ways, the greatest prospective surge may prove to be in the training of the Afghan national army and police. Despite years of American and NATO “mentoring,” both are in notoriously poor shape. The Afghan army is riddled with desertions -- 25% of those trained in the last year are now gone -- and the Afghan police are reportedly a hapless, ill-paid, corrupt, drug-addicted lot. Nonetheless, Washington (with the help of NATO reinforcements) is planning to bring an army whose numbers officially stand at approximately94,000 (but may actually be as low as 40-odd thousand) to 134,000 reasonably well-trained troops by next fall and 240,000 a year later. Similarly, the Obama administration hopes to take the police numbers from an official 93,000 to 160,000.

8. The Cost Surge: This is a difficult subject to pin down in part because the Pentagon is, in cost-accounting terms, one of the least transparent organizations around. What can be said for certain is that Obama’s $30 billion figure won’t faintly hold when it comes to the real surge. There is no way that figure will cover anything like all the troops, bases, contractors, and the rest. Just take the plan to train an Afghan security force of approximately 400,000 in the coming years. We’ve already spent more than $15 billion on the training of the Afghan Army and more than $10 billion has gone into police training -- staggering figures for a far smaller combined force with poor results. Imagine, then, what a massive bulking up of the country's security forces will actually cost. In congressional testimony, Centcom commander General David Petraeus suggested a possible price tag of $10 billion a year. And if such a program works (which seems unlikely), try to imagine how one of the poorest countries on the planet will support a 400,000-man force. Afghan President Hamid Karzai has just suggested that it will take at least 15-20 years before the country can actually pay for such a force itself. In translation, what we have here is undoubtedly a version of Colin Powell’s Pottery Barn rule (“You break it, you own it”); in this case, you build it, you own it. If we create such security forces, they will be, financially speaking, ours into the foreseeable future. (And this is even without adding in those local militias we’re planning to invest “millions” in.)

9. The Anti-Withdrawal Surge: Think of this as a surge in time. By all accounts, the president tried to put some kind of limit on his most recent Afghan surge, not wanting “an open-ended commitment.” With that in mind, he evidently insisted on a plan, emphasized in his speech, in which some of the surge troops would start to come home in July 2011, about 18 months from now. This was presented in the media as a case of giving something to everyone (the Republican opposition, his field commanders, and his own antiwar Democratic Party base). In fact, he gave his commanders and the Republican opposition a very real surge in numbers. In this regard, a Washington Post headline says it all: “McChrystal’s Afghanistan Plan Stays Mainly Intact.” On the other hand, what he gave his base was only the vaguest of promises (“…and allow us to begin the transfer of our forces out of Afghanistan in July of 2011”). Moreover, within hours of the speech, even that commitment was being watered down by the first top officials to speak on the subject. Soon enough, as the right-wing began to blaze away on the mistake of announcing a withdrawal date “to the enemy,” there was little short of a stampede of high officials eager to make that promise ever less meaningful.

In what Mark Mazzetti of the Times called a “flurry of coordinated television interviews,” the top civilian and military officials of the administration marched onto the Sunday morning talk shows “in lockstep” to reassure the right (and they were reassured) by playing “down the significance of the July 2011 target date.” The United States was, Secretary of Defense Gates and others indicated, going to be in the region in strength for years to come. (“...July 2011 was just the beginning, not the end, of a lengthy process. That date, [National Security Advisor] General [James] Jones said, is a ‘ramp’ rather than a ‘cliff.’”)

How Wide the Widening War?

When it came to the spreading Taliban insurgency in Afghanistan, the president in his speech spoke of his surge goal this way: “We must reverse the Taliban's momentum and deny it the ability to overthrow the government.” This seems a modest enough target, even if the means of reaching it are proving immodest indeed. After all, we’re talking about a minority Pashtun insurgency -- Pashtuns make up only about 42% of Afghanistan’s population -- and the insurgents are a relatively lightly armed, rag-tag force. Against them and a minuscule numberof al-Qaeda operatives, the Pentagon has launched a remarkable, unbelievably costly build-up of forces over vast distances, along fragile, extended supply lines, and in a country poorer than almost any other on the planet. The State Department has, to the best of its abilities, followed suit, as has the CIA across the border in Pakistan.

All of this has been underway for close to a year, with at least another six months to go. This is the reality that the president and his top officials didn’t bother to explain to the American people in that speech last week, or on those Sunday talk shows, or in congressional testimony, and yet it’s a reality we should grasp as we consider our future and the Afghan War we, after all, are paying for.

And yet, confoundingly, as the U.S. has bulked up in Afghanistan, the war has only grown fiercer both within the country and in parts of Pakistan. Sometimes bulking-up can mean not reversing but increasing the other side’s momentum. We face what looks to be a widening war in the region. Already, the Obama administration has been issuing ever stronger warnings to the Pakistani government and military to shape up in the fight against the Taliban, otherwise threatening not only drone strikes in Baluchistan, but cross-border raids by Special Operations types, and even possibly “hot pursuit” by U.S. forces into Pakistan. This is a dangerous game indeed.

As Andrew Bacevich, author of The Limits of Power, wrote recently, “Sending U.S. troops to fight interminable wars in distant countries does more to inflame than to extinguish the resentments giving rise to violent anti-Western jihadism.” Whatever the Obama administration does in Afghanistan and Pakistan, however, the American ability to mount a sustained operation of this size in one of the most difficult places on the planet, when it can’t even mount a reasonable jobs program at home, remains a strange wonder of the world.

The Latest from Iran (11 December): Ripples and then Ruptures?

2200 GMT: Burning Khomeini's Picture? All day long, we have been following Iran state media's exploitation of a video allegedly showing the burning of Ayatollah Khomeini's  picture during the 16 Azar protests. (At one point, the top four stories on Fars News' website were devoted to the supposed incident.) Readers may recall that we had posted the video in question on Monday but pulled it after two hours because we thought it may have been staged, possibly as a disinformation ploy to discredit the opposition.

Tonight Mir Hossein Mousavi has issued this statement:

Those who respect me would never allow the slightest insult to Imam Khomeini and they always respect him. I am sure that the students would never do such a defiant act....I don’t have the information if this event happened or not, additionally there is no clear information about those who committed this act, but if such an event really happened, it is a suspicious act and showing such an anti-revolutionary footage from the national TV was wrong.

It would be expected from those foreign media who are hostile toward the Islamic Republic to take advantage of such event and broadcast the footage but showing this footage on the national TV that owes its very existence to the revolution that was won with the leadership of Imam Khomeini, is not acceptable at all.

2040 GMT: Some Friday-Night Posturing. Continuing the thump-thump-thump of American rhetorical pressure on Iran over the nuclear negotiations (see separate entry), as well as trying to keep Tehran out of America's backyard, Secretary of State Hillary Clinton laid it on thick in a press conference:

[youtube]http://www.youtube.com/watch?v=oAPbelwaMhQ[/youtube]

Really? You've spent all week telling the world that Afghan-Pak-istan is harbouring the Al Qa'eda menace, and it's Iran that is #1 Terrorist supporter? I understand it's power politics, but try to keep it believable.

Tehran, meanwhile, is doing its own posing, this time in the Middle East:

Iran and Syria have signed an agreement to improve defense cooperation as the two sides are faced with “common enemy and challenges.”

The agreement was signed between Iranian Defense Minister Brigadier General Ahmad Vahidi and his Syrian counterpart Lt. General Ali Mohammad Habib Mahmoud in Damascus on Friday.

2025 GMT: Parliament, the Guards, and "Questionable" Financial Arrangements. This in from an EA source in Iran:

On Tuesday, Mr. Omidvar Rezaei, a member of the supervisory committee of the Parliament (and brother of Presidential candidate Mohsen Rezaei), called the establishment of a new Bank of Iran-Venezuela (following Hugh Chavez's trip to Iran earlier this year) very questionable. Mr. Rezaii said that the political maneuvring of some security organizations in order to participate in the management of this bank is against the economic interests of the country and added that the enemies will interpret these tendencies under the "holy uniform of the 12th Imam soldiers" as abuses, and it will add fire to the rumors that some organizations are transferring all oil money out of the country.

During this meeting, MP Elias Naderan said that a company called Mehr Iran belonging to the Revolutionary Guards has been established in Venezuela with a billion dollar investment in visual networks and this is inappropriate because of current situation in the country.

1845 GMT: A Friday Treat. It seems that Kermit the Frog has updated his "It's Not Easy Being Green" to take account of the last six months in Iran. We've got the video.

1835 GMT: Here's Your Medal, As For Your Rights.... The Norwegian and Swedish Foreign Ministers said yesterday that Iranian authorities have returned the Nobel Peace Prize medal and diploma of lawyer and activist Shirin Ebadi; however, they added:

Her situation continues to be serious. Ms Ebadi is prevented from working as a defender of human rights in her home country and the Iranian authorities have closed the Defenders of Human Rights Centre of which she was co-founder. The confiscation of the medal and the numerous threats directed at her, her family and her colleagues give cause for great concern and are yet another example of the worsened human rights situation in Iran since the election in June this year.

Norway and Sweden urge the Iranian authorities to allow Ms Ebadi’s safe return to Iran and to allow the Defenders of Human Rights Centre to reopen so that she can resume her important work for human rights in the country.

NEW Iran Special: Kermit the Frog Re-Mixes “It’s Not Easy Being Green”
Iran: A Renewed Washington Love Affair With The Green Movement?
Iran’s Arrest of Majid Tavakoli: “Khamenei in Hejab/We Are All Majids”
Iran: The Arrest of Majid Tavakoli “His 16 Azar Speech on Video”
Iran: “The Military Will Stand with the Iranian People”? (with Audio)
Breaking News: Khamenei Wins 2009 “Dictator of Year”
Iran Analysis: Are Rafsanjani and National Unity Plan “Spent Forces”?
The Latest from Iran (10 December): Reading the Chessboard

1625 GMT: Your Friday Prayer Summary. Hojatoleslam Kazem Seddiqi taking care of business today and, according to Press TV, he was not too fussed about 16 Azar. For Seddiqi, it's all about the nukes:

The Iranian nation will never give up its nuclear right at any price. [The West] cannot prevent us from using nuclear energy for peaceful aims by lies and propaganda....The enemy will concede another defeat in this propaganda war.

1605 GMT: Hmm, those Anti-16 Azar Rallies.... Not quite sure how significant they are. Fars News so far only has an item on a march in Rasht. The Islamic Republic News Agency has a lengthier piece on a gathering after Friday Prayers complaining about the alleged burning of Imam Khomeini's picture by opposition protesters. For unknown reasons, IRNA has blurred the photograph of those who were supposedly involved in today's rally.

1455 GMT: The Anti-16 Azar Rallies? Iranian state television is reporting that "thousands" of pro-Government students have demonstrated in Tehran and other cities after Friday prayers. They reportedly chanted, "Down with the U.S." and "Down with Israel" and read out statements saying the opposition could not "achieve their miserable aims by insulting" the Supreme Leader.

1430 GMT: An inspection team from the International Atomic Energy Agency arrived in Iran on Thursday for its third visit to the "second enrichment plant" at Fordoo near Qom.

1100 GMT: Interpreting the Attack on Rafsanjani. EA correspondent Mr Azadi thinks that Minister of Intelligence Heydar Moslehi's criticism of Hashemi Rafsanjani on Thursday marks the renewal of President Ahmadinejad's battle with Rafsanjani, even though the Supreme Leader has warned against such a conflict:

It appears that the pro-Ahmadinejad newspapers, sites, and clerics are attacking Rafsanjani not only to limit his political influence but to provoke him to oppose the Supreme Leader. But Ayatollah Khamenei has emphasised his respect for Rafsanjani. The defense of Rafsanjani by the Friday Prayer Leader in Mashaad, Ayatollah Alamalhuda, was due in part to the Supreme Leader's approach.

Now with Moslehi’s speech, it seems that the crisis between Ahmadinejad and Hashemi is in a new stage. Indeed, in giving the speech, he appears to have opposed the Supreme Leader.

Moslehi criticised Hashemi Rafsanjani for two reasons: 1) Rafsanjani's views on the election result and post-election events, including his support of leaders of the Green movement and demand for the release of political prisoners; 2) Rafsanjani's recent speech in Mashhad, which Moslehi portrayed as asserting that the Supreme Leader's ultimate authority (Velayat-e-Faqih) exists only as long as it is supported by the people.

Jomhoori Islami newspaper, backing Rafsanjani, immediately responded by publishing his book in which he analysed velayat-e-faqih.

1000 GMT: We've converted a lengthy update on developments in the US media, President Obama's Nobel Peace Prize speech, and American statements on sanctions into a separate entry, "A Renewed Washington Love Affair With The Green Movement?"

0915 GMT: So much for a quiet Friday. Although it is the Iranian weekend, a series of developing and breaking stories has churned political waters. There is excitement, concern, and uncertainty as people try to assess whether those ripples will spread and strengthen. And all of this is occurring as we move into the week before the sacred month of Moharram.

The Government contributed to the tension yesterday, turning Minister of Intelligence Heydar Moslehi loose in a frontal assault on former President Hashemi Rafsanjani. Moslehi told student clerics in Qom (and, yes, the choice of venue and audience is significant, given that the religious community is split over the post-12 June actions of the Government), “[Mr Rafsanjani] believes if people do not accept the velayat-e-faghih [the rule of the Supreme Leader], he has to step down." Moslehi also sustained the ongoing warning that Rafsanjani's son Mehdi Hashemi faces prosecution for stirring of post-election conflict.

From the opposition, the arrest of student leader Majid Tavakoli on 16 Azar is spurring new forms of protest. The regime's attempt to humiliate Tavakoli by displaying him "in disguise as a woman" seems to have backfired, as supporters rally behind Tavakoli by dressing in hejab and posting satirical photographs of the Supreme Leader. The video of the activist's last speech is also racing around the Internet.

The biggest ripple this morning, however, may have come out of the Iranian military. After months of rumours of unhappiness and even divisions over the Government's actions, a letter and audio which is allegedly from eight Army and Air Force regiments, declares that they will "stand with the Iranian people" if violence against dissenters. continues.

Afghanistan-Pakistan Transcript/Analysis: Clinton & Gates on ABC News (6 December)

Video of the interview:

Get beyond the headline of Secretary of Defense Robert Gates' admission, "I think it has been years" since the US had good intelligence on Osama bin Laden's, and here are the important points from this interview:

1. The Obama approach on Afghanistan, no matter how many times Gates says "transition strategy", is to "kick the can down the road", putting off the deadline for another significant decision to mid-2011.

2. The Obama Administration still has no confidence that it can rely on a political center in Kabul. Look at Secretary of State Hillary Clinton's far-from-ringing endorsement of Afghan President Hamid Karzai: "The proof is in the pudding. We're going to have to wait to see how it unfolds."

A Gut Reaction to Obama’s Afghanistan-Pakistan Speech: The Halfway House of Long War (Part 1)
A Hail Mary Strategy in Pakistan: The Gut Reaction to Obama’s Speech (Part 2)

3. There is not a hint of an approach in Pakistan other than the Pakistani military being told to go and beat up the "Taliban".

4. The Obama Administration has no real idea how to deal with the economic strain of this increased commitment, other than to hope that it goes away sooner rather than later.

5. So how to proceed, given all these obstacles? Repeat: Al Qa'eda, Al Qa'eda, Al Qa'eda.

GEORGE STEPHANOPOULOS, HOST: And we begin with the cornerstones of President Obama's national security cabinet, the secretary of state, Hillary Clinton; secretary of defense, Robert Gates. Welcome to you both.

This is the first time you're here together on "This Week". Thanks for doing it.

HILLARY CLINTON, SECRETARY OF STATE: The first time we've been called cornerstones.

(LAUGHTER)

STEPHANOPOULOS: Secretary Gates, let me begin with you, because there has been so much focus since the president's speech on this call to begin an exit strategy in July 2011. I want to show you what Senator McCain said earlier this week.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: When conditions on the ground have decisively begun to change for the better, that is when our troops should start to return home with honor, not one minute longer, not one minute sooner, and certainly not on some arbitrary date in July 2011.

(END VIDEO CLIP)

STEPHANOPOULOS: Just two months ago, you seemed to agree with that sentiment. You called the notion of timelines and exit strategies a strategic mistake. What changed?

ROBERT GATES, SECRETARY OF DEFENSE: Well, first of all, I don't consider this an exit strategy. And I try to avoid using that term. I think this is a transition...

STEPHANOPOULOS: Why not?

GATES: This is a transition that's going to take place. And it's not an arbitrary date. It will be two years since the Marines went into southern Helmand and that two years that our military leaders believe will give us time to know that our strategy is working.

They believe that in that time General McChrystal will have the opportunity to demonstrate decisively in certain areas of Afghanistan that the approach we're taking is working. Obviously the transition will begin in the less contested areas of the country.

But it will be the same kind of gradual conditions-based transition province by province, district by district, that we saw in Iraq.

STEPHANOPOULOS: We've heard that phrase a lot...

GATES: But it begins -- but it begins in July 2011.

STEPHANOPOULOS: No, I understand that. But you about this conditions-based decision-making. And I guess that it's fairly vague term. So if the strategy is working, do the troops stay? If it's not working, do they leave? How -- how is the decision-making process going to go?

GATES: Well, from my standpoint, the decision in terms of when a district or a cluster of districts or a province is ready to be turned over to the Afghan security forces is a judgment that will be made by our commanders on the ground, not here in Washington.

And we will do the same thing we did in Iraq, when we transitioned to Afghan security responsibility. We will withdraw first into tactical overwatch, and then a strategic overwatch, if you will, the cavalry over the hill in case they run into trouble.

STEPHANOPOULOS: And this certainly increases the leverage on President Karzai and his government, Secretary Clinton, which brings up questions similar to questions that were raised by a lot of Democrats during -- after the Iraq surge, including President Obama when he was a senator.

He asked Secretary Rice basically what happens if the Maliki government doesn't live up to its promises.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES, THEN SENATOR: Are there any circumstances that you can articulate in which we would say to the Maliki government that enough is enough, and we are no longer committing our troops.

(END VIDEO CLIP)

STEPHANOPOULOS: A lot of people asking the same exact question today about President Karzai, at what point do we say enough is enough, we're no longer going to commit troops?

CLINTON: Well, George, I understand the desire to ask these questions which are all thrown into the future, they're obviously matters of concern about how we have a good partner as we move forward in Afghanistan.

But I think you have to look at what President Karzai said in his inaugural speech where he said that Afghan security forces would begin to take responsibility for important parts of the country within three years, and that they would be responsible for everything within five years.

And from our perspective, we think we have a strategy that is a good, integrated approach, it's civilian and military. It has been extremely thoroughly analyzed. But we have to begin to implement it with the kind of commitment that we all feel toward it.

I can't predict everything that is going to happen with President Karzai. I came away from my meeting with him around the inauguration heartened by a lot of what he was saying. But you know, the proof is in the pudding. We're going to have to wait to see how it unfolds.

STEPHANOPOULOS: But if you're really going to have maximum leverage, doesn't he have to know that if he doesn't live up to the commitment, we're going to go?

CLINTON: Well, I think he knows that we have a commitment to trying to protect our national security. That's why we're there. We do want to assist the people of Afghanistan and to try to improve the capacity of the Afghan government.

But I think it's important to stress that this decision was based on what we believe is best for the United States. And we have to have a realistic view of who we're working with in Afghanistan, and it's not only President Karzai, it's ministers of various agencies that -- some of which are doing quite well and producing good results, provincial and local leaders.

So it's a much more complicated set of players than just one person.

STEPHANOPOULOS: There is also the question of Pakistan, the neighbor, and whether they're living up to their commitments. You got in a little hot water in Pakistan when you suggested that they hadn't been doing enough in the past to go after the Taliban.

And, Secretary Gates, let me turn a question about this to you, it's connected to a report that Senator Kerry, the chairman of the Senate Foreign Relations Committee released this week about Osama bin Laden. He suggested that the failure to block his exit from Tora Bora has made the situation there much worse.

In this report, he actually wrote that the decisions that opened the door for his escape to Pakistan allowed bin Laden to emerge as a potent symbolic figure who continues to attract a steady flow of money and inspire fanatics worldwide.

The Pakistani prime minister sort of shrugged off any concerns about that this week, about whether or not he had gone -- done enough to go after Osama bin Laden. He said he doesn't believe Osama is in Pakistan. Is he right? And do you think the Pakistanis have done enough to get him?

GATES: Well, we don't know for a fact where Osama bin Laden is, if we did, we'd go get him. But...

STEPHANOPOULOS: When was the last time we had any good intelligence on where he was?

GATES: I think it has been years.

STEPHANOPOULOS: Years?

GATES: I think so.

STEPHANOPOULOS: So these reports that came out just this week about a detainee saying he might have seen him in Afghanistan earlier this year?

GATES: No, that's...

STEPHANOPOULOS: We can't confirm that.

GATES: No.

STEPHANOPOULOS: So do you believe that one of the reasons we haven't had good enough intelligence is because the Pakistani government has not been cooperating enough?

GATES: No. I think it's because if, as we suspect, he is in North Waziristan, it is an area that the Pakistani government has not had a presence in, in quite some time. The truth of the matter is that we have been very impressed by the Pakistani army's willingness to go into places like Swat in South Waziristan, if one had asked any of us a year or more ago if the Pakistani army would be doing that, we would have said no chance.

And so they are bringing pressure to bear on the Taliban in Pakistan, and particularly those that are attacking the Pakistani government. But frankly, any pressure on the Taliban, whether it's in Pakistan or in Afghanistan is helpful to us because al Qaeda is working with both of them.

STEPHANOPOULOS: You mentioned the actions the Pakistani government has taken. Is Balochistan next? Is that where they have to go next to take out the Taliban?

GATE: Well, I think that the Pakistani government, we sometimes tend to forget that Pakistan, like Afghanistan, is a sovereign country. And Pakistani -- the Pakistani army will go where the Pakistani army thinks the threat is. And if they think that threat is Balochistan, that's where they'll go. If they think it's in North Waziristan, they may go up there. Or they may just winter in where they are right now.

But these are calls that the Pakistanis make. We are sharing information with them. We have had a steadily developing, better relationship between our militaries.

And we will help them in any way we possibly can, but that's their call.

STEPHANOPOULOS: Back to Afghanistan, Secretary Clinton, some have suggested that one of your envoys -- the president's envoy, Richard Holbrooke -- should begin negotiations with those elements of the Taliban who are willing to talk to him.

Do you agree with that?

CLINTON: Well, George, we have said -- and the president made it clear in his speech at West Point -- that, you know, there are two different approaches here.

One is what could be called reintegration. And that is really looking at the lower-level members of the Taliban, who are there through intimidation and coercion, or, frankly, because it's a better living than they can make anywhere else.

We think there's a real opportunity for a number of those to be persuaded to leave the battlefield.

Now, the problem, of course, once they leave -- and we have a lot of evidence of this -- they'll get killed if they're not protected. And that's one of the reasons why we're trying to get these secure zones.

STEPHANOPOULOS: In other words, they don't believe we'll stay.

CLINTON: Well, and also, just, we need to secure the population. It's one of General McChrystal's principal objectives.

Then the upper levels of the Taliban -- you know, look. They have to renounce al Qaeda, renounce violence. They have to be willing to abide by the constitution of Afghanistan and live peacefully.

We have no firm information whether any of those leaders would be at all interested in following that kind of a path. In fact, I'm highly skeptical that any of them would.

So, we're going to be consulting with our Afghan partners. It's going to be a multiply-run operation to see who might come off of the battlefield, and who might possibly give up their allegiance to the Taliban and their connection with the...

STEPHANOPOULOS: But high-level negotiations are possible?

CLINTON: We don't know yet. And again, I think that -- we asked Mullah Omar to give up bin Laden before we went into Afghanistan after 9/11, and he wouldn't do it. I don't know why we think he would have changed by now.

GATES: I would just add, I think that the likelihood of the leadership of the Taliban, or seniors leaders, being willing to accept the conditions Secretary Clinton just talked about depends in the first instance on reversing their momentum right now, and putting them in a position where they suddenly begin to realize that they're likely to lose.

STEPHANOPOULOS: How is this offensive in Helmand Province going?

GATES: It's actually going very well. And the Marines have already had -- I think one of the reasons that our military leaders are pretty confident is that they have already begun to see changes where the Marines are present in southern Helmand.

STEPHANOPOULOS: Let me (UNINTELLIGIBLE) the question of costs, which has been raised by our next guest, Senator Russ Feingold. As you know, he's against the escalation announced by the president.

But he's also gone (ph) and wrote a letter to the president where he raises -- where he says, we request that you not send any additional troops to Afghanistan until Congress has enacted appropriations to pay for the cost of such an increase, and that you propose reductions in spending to pay for the costs of any military operations in Afghanistan -- a concern shared by many of the American people.

Secretary Clinton, shouldn't this war, if we're going to fight it, be paid for?

CLINTON: Well, the president has said that the costs are going to be accounted for, that the Office of Management and Budget, the Defense Department, the State Department, you know, are going to be working to make sure that we give the best projections of costs we can.

I think that we're going to have to address our deficit situation across the board. There's no doubt about that, and I certainly support that.

But I think we have to look at the entire budget, and we have to be very clear about, you know, what the costs are, as Secretary Gates has said a couple of times in our testimony together. We are drawing down from Iraq. There will be savings over the next two to three years coming from there. And the addition of these troops is going to put a burden on us, no doubt about it.

It is manageable, but we have to look at all of our fiscal situation and begin to address this.

STEPHANOPOULOS: There's also the question of the cost-benefit analysis. And a lot of people look at our own U.S. government intelligence estimates, saying there are fewer than 100 active al Qaeda in Afghanistan and say, why is that worth putting $30 billion more this year into Afghanistan?

GATES: It is because in that border area, Afghan-Pakistani border, that is the epicenter of extremist jihad. And al Qaeda has close relationships with the Taliban in Afghanistan, and they have very close relationships with the Taliban in Pakistan.

The Taliban in Pakistan have been attacking Pakistani civilians, Pakistani government officials, military officials, trying to destabilize the government of Pakistan.

Any success by the Taliban in either Afghanistan or Pakistan benefits al Qaeda. And any safe haven on either side of the border creates opportunities for them to recruit, get new funds and do operational planning.

And what's more, the Taliban revival in the safe havens in western Pakistan is a lesson to al Qaeda that they can come back, if they are provided the kind of safe haven that the Taliban were.

This is the place where the jihadists defeated the Soviet Union, one superpower. And they believe -- their narrative is that it helped create the collapse of the Soviet Union. If they -- they believe that if they can defeat us in Afghanistan, that they then have the opportunity to defeat a second superpower.

STEPHANOPOULOS: But you look at that...

GATES: And it creates huge opportunities for them in that area, as well as around the world.

STEPHANOPOULOS: You were the deputy director of the CIA back in 1985, when Gorbachev made the decision to expand. Eighteen months later, he was pulling out.

What's to prevent that from happening again?

GATES: Well, what he did was agree with his generals to make one last push.

But the parallel just doesn't work. The reality is, the Soviet Union invaded Afghanistan. They killed a million Afghans. They made five million refugees out of Afghanis.

They were isolated in the world in terms of what they were doing there.

We are part of an alliance of 42 countries with us, in addition to us, that are contributing troops. We have a U.N. mandate. We have a mandate from NATO.

So, you have broad international support for what's going on in Afghanistan. And the situation is just completely different than was the case with the Soviet Union.

STEPHANOPOULOS: We're just about out of time.

Secretary Clinton, I want to ask you about the case of Amanda Knox, the American college student, who was convicted of murder in Italy, just on Friday.

Senator Cantwell of Washington has expressed a lot of concerns about this conviction. She said she wants to talk to you about it. Here's what she said.

I have serious questions about the Italian justice system and whether anti-Americanism tainted this trial. The prosecution did not present enough evidence for an impartial jury to conclude beyond a reasonable doubt that Ms. Knox was guilty. Italian jurors were not sequestered, and were allowed to view highly negative news coverage about Ms. Knox.

She goes on to lay out several of the concerns she had with the trial. She did say, as I said, she's going to be in contact with you, so you can express the concerns to the Italian government.

Do you share her concerns about this trial?

CLINTON: George, I honestly haven't had time to even examine that. I've been immersed in what we're doing in Afghanistan.

Of course, I'll meet with Senator Cantwell, or anyone who has a concern, but I can't offer any opinion about that at this time.

STEPHANOPOULOS: So you have not expressed any concerns to the Italian government?

CLINTON: I have not, no.

STEPHANOPOULOS: Secretary Clinton, Secretary Gates, thank you both very much.

GATES: Thank you.

A Hail Mary Strategy in Pakistan: The Gut Reaction to Obama's Speech (Part 2)

On Wednesday in Holland, I was set a challenge by a member of the audience: could I summarise, in 30 seconds, the Pakistan side of President Obama's Tuesday speech setting out US intervention in that country as well as Afghanistan?

Here goes....

In American football, there is a desperation play called the Hail Mary pass. You're behind 4 points and there are only 5 seconds left on the clock. So you hurl the football 60, 70, 80 yards down the field and hope against hope that one of your receivers can something snatch it for 6 points and an unlikely victory.

Josh Shahryar’s Afghanistan Primer: The US and the "Warlords"
Afghanistan Special: Josh Shahryar on the Obama Not-So-Grand Plan
A Gut Reaction to Obama’s Afghanistan-Pakistan Speech: The Halfway House of The Long War (Part 1)

Kill Bin Laden: this is President Obama's Hail Mary.

Of course, the President didn't use that exact expression, preferring general rhetoric with little substance about "an effective partnership with Pakistan". Instead, his advisors left breadcrumbs for more observant journalists to follow, as in this extract from Wednesday's New York Times:

Administration officials said that Mr. Obama had signed off on a plan by the Central Intelligence Agency to expand C.I.A. activities in Pakistan. The plan calls for more strikes against militants by drone aircraft, sending additional spies to Pakistan, and securing a White House commitment to bulk up the C.I.A.’s budget for operations inside the country.

The expanded operations could include drone strikes in the southern province of Baluchistan, where senior Afghan Taliban leaders are believed to be hiding, officials said.

There's no mention of Osama or his deputy, Ayman al-Zawahiri, but then again this is not a new strategy. The US has been pursuing the drone strikes, supported by covert ground operations, for years; the only difference since January 2009 has been that President Obama has expanded the effort. This autumn the Administration has been spinning that the attacks killed at least seven top "extremists" (take your pick with the generic label, "Taliban" or "Al Qa'eda"), including Baitullah Mehsud.

Which raises an immediate question: where do you go from there with yet another "expansion"? I guess you hope that you can rub out Mehsud's relative and successor, Hakimullah Mehsud, who popped up alive weeks after US sources said he was most likely dead, and any other claimants of leadership.

But let's assume that the super-effective drones can eliminate most of the local Pakistani insurgent leaders. Let's assume that there is not a "hydra effect", in which you assassinate one senior member only for another two to pop up. Let's even assume that you don't have the inconvenience of eliminating dozens of civilian bystanders, as has happened frequently during the drone campaign.

Here's the problem for the US Government: is this all there is? A possible answer would be no, since in Obama's words, "The Pakistani army has waged an offensive in Swat and South Waziristan."

Well, yes, there has been an offensive in the summer and autumn which has pushed insurgents deeper into the country. It has also displaced millions --- not thousands, hundreds of thousands, but millions --- of Pakistanis from their homes (a minor blip that Obama wished away on Tuesday with, "We are the largest international supporter for those Pakistanis displaced by the fighting"). It has diverted Pakistani resources, at a time of serious economic difficulty, a diversion which the US Government hopes can be covered by its aid package "to support Pakistan's democracy and development".

This is not a strategy beyond Whack-a-Mole and hope he doesn't pop up again. So is there all there is?

Maybe not, in the sense --- unspoken by Obama on Tuesday --- that his Administration is hoping to back a political centre in Islamabad that will be more stable than that in Kabul. (See Part 1 of this analysis for the Afghanistan dimension of the "hole in the doughnut".) President Zardari is to be stripped of any authority beyond shaking hands at official functions. The top civilian is now Prime Minister Gillani --- how coincidental that he was profiled glowingly this week in the US media --- backed, perhaps surpassed, by the Pakistani military.

That will probably be enough to hold the line in Pakistan, barring the long-shot scenario of an implosion of the military structure. Obama, however, declared on Tuesday that Hold the Line is not enough. So can the US, with all the billions in aid and the rhetorical pushing, get the Pakistani military not only to put on offensives but to take the battle all the way into the insurgent heartland? Do US allies in Islamabad share the goal of Get Bin Laden?

(And even if the Pakistani military takes on the task, can you wage such a campaign without further dislocation --- not only physical but economic, social, and cultural --- of the Pakistani people? Can this be a cost-free campaign, given the tensions in Pakistani politics and society that are never far from the surface?)

I don't know the answers, even this late in the War on Terror game. Sometimes even a Hail Mary pass is successful.

But not often.