Quotulatiousness

September 16, 2014

Unexpectedly thick ice holding back Arctic shipping

Filed under: Europe, Russia — Tags: , — Nicholas @ 08:30

Girija Shettar reports on the delays to planned transits of the Northern Sea Route through the Russian Arctic:

Northern Sea Route (PA photo via IHS Maritime 360)

Northern Sea Route (PA photo via IHS Maritime 360)

No transits through the Northern Sea Route (NSR) have been completed so far this year, which could bring the route’s long-term viability into question, experts have told IHS Maritime.

NSR Administration has given permission for 577 transits, but vessels navigating the NSR water area total only 99, with no completed voyages. NSR transits usually start in July and run until November.

Last year, 71 vessels transited the NSR, starting at the end of June, with the last transit at the end of November.

[…]

“We are two months late compared to 2012 and many planned cargo and passenger transits are currently being cancelled,” he said. “There’s too much ice and it seems that the Arctic ice extent will reach a decennial record high this year. I expect this will generate scepticism on the future economic viability of the route and the related investments already announced by the Arctic littoral countries.”

HMS Queen Elizabeth full build timelapse

Filed under: Britain, Military, Technology — Tags: , — Nicholas @ 07:50

Published on 15 Sep 2014

Start to finish view of the construction of HMS Queen Elizabeth Aircraft Carrier. This is the first of the two new carriers being constructed by the Aircraft Carrier Alliance for the Royal Navy at Rosyth Dockyard.

Update: That was the assembly of the ship, but how does the UK government expect to use her in service?

Published on 7 Jul 2014

This powerful video demonstrates the capabilities and effectiveness of the new Queen Elizabeth class carriers demonstrating, via amazing CGI, the workings of the carriers and the F35 Fighters.

The First Sea Lord talks about the incredible journey that the construction and original concept of the carriers has taken and what the carriers mean to the future of the Royal Navy.

The British Army and the RAF also talk about what carriers mean to them and the important role they will play in the future of defence.

These highly advanced ships will have a huge variety of roles that she will be able to perform when the first ship launches and the amazing technology that has been built into them to put them at the fore-front of the Fleet. They really will be the Jewel in the Crown of the Royal Navy.

This stunning video was show to her Majesty the Queen and other guests at the amazing naming ceremony on the 4th July.

September 15, 2014

BBC Last Night of the Proms 2014 – Jerusalem, God Save the Queen and Auld Lang Syne

Filed under: Britain, Media — Tags: , , — Nicholas @ 00:02

September 14, 2014

Latest Snowden revelation – NSA and GCHQ have full access to German telecom systems

Filed under: Britain, Europe, Germany, Technology, USA — Tags: , , , , — Nicholas @ 12:21

In The Register, Kelly Fiveash sums up the latest information from Edward Snowden:

An NSA and GCHQ surveillance programme — dubbed Treasure Map — grants US and British spooks access to the networks of German telcos such as Deutsche Telekom, according to a new stash of leaked documents from Edward Snowden.

Der Spiegel published the latest revelations today. However, Deutsche Telekom reportedly said it had found no evidence of such tampering on its system.

“We are looking into every indication of possible manipulations but have not yet found any hint of that in our investigations so far,” a spokesman at the company told Reuters.

He added: “We’re working closely with IT specialists and have also contacted German security authorities. It would be completely unacceptable if a foreign intelligence agency were to gain access to our network.”

The Register sought comment from the telco, but it hadn’t immediately got back to us at time of writing.

The Treasure Map programme was described by Snowden as “a 300,000 foot view of the internet” in a New York Times story published in November last year.

September 13, 2014

Ukraine’s PM – “We are still in a stage of war and the key aggressor is the Russian Federation”

Filed under: Europe, Military, Russia — Tags: , — Nicholas @ 11:26

In the Guardian, Martin Williams reports on the situation in eastern Ukraine:

The Russian president, Vladimir Putin, wants to destroy Ukraine as an independent country and resurrect the Soviet Union, the Ukrainian prime minister Arseny Yatseniuk has said.

Yatseniuk told a conference of European politicians his country was “in a stage of war” with Russia, as renewed clashes broke out between the Ukrainian army and pro-Russian rebels in the east and Moscow sent a second convoy of trucks into Ukraine without Kiev’s consent.

Continuous rocketfire could be heard overnight in the eastern city of Donetsk. The city council said shells had hit residential buildings near the airport, although no casualties were reported.

Ukraine’s military said it had successfully repelled a rebel attack on the government-held Donetsk airport. But a column of three Russian multiple rocket launchers was seen moving freely through the rebel-held city on Saturday morning.

Speaking at a conference in Kiev attended by European and Ukrainian politicians and business leaders, Yatseniuk praised the economic sanctions imposed on Moscow. He said: “We are still in a stage of war and the key aggressor is the Russian Federation … Putin wants another frozen conflict [in eastern Ukraine].

“His aim is not just to take Donetsk and Lugansk. His goal is to take the entire Ukraine … Russia is a threat to the global order and to the security of Europe.”

September 12, 2014

Scottish businesses face a “day of reckoning” after a Yes vote

Filed under: Britain, Business, Politics — Tags: , , , — Nicholas @ 16:04

Usually, when someone is planning to punish their political enemies, they keep quiet about it until the votes are counted. The former deputy leader of the Scottish National Party is pretty forthright about just who is going to be facing punishment if Scotland votes yes:

Former SNP deputy leader Jim Sillars has claimed there will be a “day of reckoning” for major Scottish employers such as Royal Bank of Scotland and Standard Life after a Yes vote.

Speaking from his campaign vehicle the “Margo Mobile”, Mr Sillars insisted that employers are “subverting Scotland’s democratic process” and vowed that oil giant BP would be nationalised in an independent Scotland.

Earlier this week, a number of banks, including Lloyds Banking Group and RBS, said they would look to move their headquarters south of the border in the event of a Yes vote.

Mr Sillars, who earlier this week claimed he and First Minister Alex Salmond had put their long-held personal differences behind them to campaign together for independence, also revealed that he would not retire from politics on 19 September but said he would be “staying in” if Scotland became independent.

He claimed there is talk of a “boycott” of John Lewis, banks to be split up, and new law to force Ryder Cup sponsor Standard Life to explain to unions its reasons for moving outside Scotland.

He said: “This referendum is about power, and when we get a Yes majority, we will use that power for a day of reckoning with BP and the banks.

“The heads of these companies are rich men, in cahoots with a rich English Tory Prime Minister, to keep Scotland’s poor, poorer through lies and distortions. The power they have now to subvert our democracy will come to an end with a Yes.”

If I had any investments in Scotland, I would be calling my broker to review them in the light of this pretty specific set of economic and political goals for an independent Scotland. It won’t be a safe place to invest any kind of retirement savings if Sillars represents more than a fringe of the SNP.

September 11, 2014

Would Scottish separation resemble the “Velvet Divorce” of Czechoslovakia?

Filed under: Britain, Economics, Europe — Tags: , , , , — Nicholas @ 11:40

At the Volokh Conspiracy, Ilya Somin looks at the breakup of Czechoslovakia and compares the possible UK-Scotland divorce in that context:

One relevant precedent is the experience of the “Velvet Divorce” between Slovakia and the Czech Republic, whose success is sometimes cited by Scottish independence advocates as a possible model for their own breakup with Britain. Like many Scottish nationalists, advocates of Slovak independence wanted to break away from their larger, richer, partner, in part so they could pursue more interventionist economic policies. But, with the loss of Czech subsidies, independent Slovakia ended up having to pursue much more free market-oriented policies than before, which led to impressive growth. The Czech Republic, freed from having to pay the subsidies, also pursued relatively free market policies, and both nations are among the great success stories of Eastern Europe.

Like Slovakia, an independent Scotland might adopt more free market policies out of necessity. And the rump UK (like the Czechs before it), might move in the same direction. The secession of Scotland would deprive the more interventionist Labor Party of 41 seats in the House of Commons, while costing the Conservatives only one. The center of gravity of British politics would, at least to some extent, move in a more pro-market direction, just as the Czech Republic’s did relative to those of united Czechoslovakia.

If the breakup of the UK is likely to resemble that of Czechoslovakia, this suggests that free market advocates should welcome it, while social democrats should be opposed. Obviously, other scenarios are possible. For example, famed economist Paul Krugman claims that Scottish independence is likely to result in an economic disaster, because a small country without a currency of its own cannot deal with dangerous macroeconomic crises. I lack the expertise to judge whether Krugman’s prediction is sound. But it does seem like there are obvious counterexamples of small countries that have done well without having their own currencies; Slovakia is a good example. Moreover, although Scottish independence advocates today claim that they will stick to the pound, they could reverse that decision in the future.

All of the above assumes that an independent Scotland will be able to stay in the European Union, and that there would be free trade and freedom of movement between it and the remaining United Kingdom. If the Scots get locked out of the EU or prevented from interacting freely with the UK (perhaps as a result of backlash by angry English public opinion), Scottish independence becomes a lot less viable and a lot more likely to cause serious harm on both sides of the new border.

Evolution versus revolution in the design of HMS Queen Elizabeth

Filed under: Britain, Military — Tags: , , , — Nicholas @ 00:02

Peter Roberts analyzes the design trade-offs of the Queen Elizabeth class for the Royal United Services Institute:

Queen Elizabeth class side and overhead views

Queen Elizabeth class side and overhead views

The most important change in the Queen Elizabeth class is the open acknowledgement of the primacy of running costs at the heart of the project – manifest in crew numbers, unmanned monitoring and power generation. The UK carriers are platforms designed by economists, not warriors.

The largest costs for running maritime platforms are manpower and fuel. In terms of manpower, the Queen Elizabeth will have a crew of 650 with an additional thousand berths available for the air group. By comparison, the American Nimitz class and new Gerald Ford class, which displace around 40,000 tonnes more, are crewed by 6,000 and 4,500 personnel respectively. The French Charles de Gaulle, which in terms of tonnage is about a third smaller its British counterpart, carries a crew of around 2,500. The UK figures were driven by the necessity to avoid increasing the manpower bill of the Royal Navy. As such, the 650 figure is exactly the same as the preceding Invincible class. Allowing the same complement to effectively operate a vessel three times the size of her predecessor has forced some innovative thinking.

The use of automation and remote monitoring has been essential to meet the manpower restrictions. Cameras and monitoring equipment have been built into almost every system in the new ships. From machinery spaces to bilge areas, remote performance monitoring has allowed a marked reduction in the manpower requirements of the ships. Whilst this makes good sense in financial terms, it does not in terms of pure war-fighting capability. Naval vessels differ significantly from their commercial counterparts in terms of damage control and fire-fighting. These roles are remarkably manpower intensive. The experiences of major damage in the Falklands conflict have been reinforced at intervals by peacetime incidents on HMS Nottingham (2002) and Endurance (2008), which required the efforts of the full ship’s complement to remain afloat. The damage-control capabilities of the UK carrier platforms should, therefore, be a primary concern.

[…]

There is one further element that has not been well considered in the Carrier-Enabled Power Projection doctrine of the Royal Navy and the MoD. Protection of these assets from threats has effectively been taken ‘on-risk’, and against all operational analysis. The self defence capabilities of these ships are extremely limited. The provision of close-in weapon systems and automatic small-calibre guns does not guarantee adequate protection against a small scale naval threat, let alone a shore-based one. Naval doctrine instead requires protection of the carriers by destroyers and frigates. This is a cost-effective solution provided that the task group has the necessary units to provide such protection. But there is no evidence that the projected Royal Navy combined frigate/destroyer force could do so.

The Queen Elizabeth class is therefore an interesting example of innovation: rather than in the sense of equipment and capability, it might be more relevant to think about how risk to the platforms is being dealt with in an ‘innovative’ manner.

The second ship in the class, HMS Prince of Wales just reached a major milestone in construction:

HMS Prince of Wales hull sections

Construction of HMS Prince of Wales, the second of two new aircraft carriers for the UK Royal Navy, has moved forward with the docking of two of the ship’s largest hull sections – Lower Block 02 and Lower Block 03.

The movement of the blocks into the dock at Rosyth marks the beginning of the ship’s assembly phase and comes only days after Prime Minister David Cameron announced that HMS Prince of Wales will enter into service, ensuring that the UK will always have one aircraft carrier available.

Ian Booth, Managing Director at the Aircraft Carrier Alliance, said: “Every milestone in the carrier programme is hugely significant and the recent announcement that HMS Prince of Wales will enter service means there is a real sense of excitement as we start to bring the second ship together. Everyone working across the Alliance is incredibly proud of the work undertaken so far, in what is currently one of the biggest engineering projects in the country, and we remain focused on delivering both ships to the highest standards.”

September 10, 2014

NATO’s “aim” problem

Filed under: Europe, Military, USA — Tags: , , — Nicholas @ 10:35

James Holmes explains why “aim” isn’t good enough for NATO members:

The Naval Diplomat is not from Missouri, America’s Show-Me State. But I’m in a show-me state of mind following last week’s NATO summit in another Newport — Newport, Wales. Lofty words were said. The summit communiqué pledges, for instance, to restore some sanity to defense spending.

NATO long ago fixed the standard for defense spending at 2 percent of GDP. Few meet the standard, but at Newport the NATO-European powers put everyone on notice that they’re really, truly serious about it. The small minority that already comply — Great Britain (for the moment) and Greece, alongside the United States — will “aim to continue to do so.” The majority that don’t vow to arrest further slippage. And they will “aim to increase defense expenditure in real terms as GDP grows,” and “aim to move towards the 2% guideline within a decade,” helping field viable forces.

Aim being the keyword — or, more accurately, the key diplomatic weasel word — in these passages. How many European allies will fulfill their commitment, and how many will avail themselves of the escape clause? Barry Pavel of the Atlantic Council observes charitably that the uptick in budgets is “not going to happen across the entire alliance, but it’s useful for framing incentives for some nations to start to contribute more.” And that tepid prediction comes from someone who’s presumably a NATO enthusiast.

So let me get this straight. NATO-Europe resolutely promises to try … to build up to a level that barely qualifies as peacetime defense spending … over the next decade … if GDPs expand to permit it. Wow. As a matter of alliance management, think about the message the Newport communiqué telegraphs. To us in North America, it indicates that Europe sees itself inhabiting entirely tranquil surroundings, untroubled by anything like, say, Russian aggression against an Eastern European neighbor.

Ruining royal reputations – it didn’t start on Fleet Street

Filed under: Books, Europe, France, History, Media — Tags: — Nicholas @ 00:02

In Maclean’s, Patricia Treble reviews a new book by Jonathan Beckman, called How to Ruin a Queen: Marie Antoinette and the Diamond Necklace Affair:

Three years before revolutionaries toppled Louis XVI and his Austrian-born wife, Marie Antoinette, France was mesmerized with a different tumult. Cardinal Louis de Rohan, scion of one of the nation’s grandest families, was in court, accused of stealing a famously expensive necklace from jewellers who’d created it. He claimed he’d acted at the behest of the queen, who then reneged on paying for the gaudy 2,800-carat piece. The resultant scandal solidified Marie Antoinette’s reputation for unbounded extravagance.

Yet, as Jonathan Beckman, explains in a masterful new account of the diamond necklace affair, nothing is as it appeared. There are fake royals, forged letters and disappearing gems as well as kidnappings, trysts and even a duel involving poisoned pigs. If the tale was fictional, it would be dismissed as an overwrought fantasy, yet in Beckman’s hands, its machinations unfold as an audacious caper that will enthrall readers much as the original events captivated Europe.

September 9, 2014

UK re-runs Canada’s 1995 near-death experience

Filed under: Britain, Cancon, History — Tags: , , — Nicholas @ 09:32

Andrew Coyne points out some of the parallels between the 1995 referendum in Quebec and this month’s referendum in Scotland:

It has been an entertaining, if unnerving, couple of weeks, recalling the referendum of 1995 and speculating about what would have happened had the separatists won. Now, thanks to the Scots, we may be about to find out.

Next week’s referendum on Scottish independence is indeed looking eerily reminiscent of the 1995 near-disaster: the same early complacency in the No camp, the same unbridled panic as the Yes side surges in the polls; the same unappealing mix of threats (“one million jobs”) and accounting on the No side, the same fraudulent claims (“we’re subsidizing the English”) and utopian fantasies on the Yes; the same blurring of the lines on both sides, independence made to look like the status quo (“we’ll keep the pound”) even as the status quo is made to look like independence (“devo-max” is the British term for special status). Add a charismatic Yes leader and an unpopular, seemingly disengaged prime minister, and the picture is complete.

Learning nothing from our experience, the Brits made all the same strategic errors we did, first conferring an unwarranted legitimacy on the separatist project, then attempting to pacify it with powers and money, only to watch it grow more ravenous in response. They have ended up in the same game of heads-I-win, tails-you-lose: a No vote simply marks the launch of the next campaign, while a Yes, supposedly, is forever.

[…]

We should not underestimate how much of separatism’s decline in this country can be explained by sheer exhaustion, especially post-Clarity Act. A great many soft nationalists, for whom it retains a romantic appeal, were persuaded it was simply too arduous an undertaking, full of too much uncertainty and upheaval. But if that premise appeared to have been debunked — if the British pull off the same quick divorce that the Czechs and Slovaks did in the 1990s — we might yet see the issue resurface. You see, the Parti Quebecois would crow? It is just as we told you. And Britain, of all places, has proved it.

This is why NATO countries are not supplying weapons to Ukraine

Filed under: Europe, Military, Weapons — Tags: , , , — Nicholas @ 08:48

It’s not about a sudden sensitivity to Russian feelings: NATO is not providing up-to-date weapons and ammunition for excellent practical reasons:

The Ukrainian armed forces use Soviet weapons systems. These are well-designed, solid, easy to use for a conscript army, and although the Ukrainian inventory may be aging, Soviet arms production was never geared to high-tech generational obsolescence. They build simple, solid and cheap because they have to. NATO countries are casualty-averse and never commit a platoon where a Hellfire missile is available. On the other hand, Soviet doctrine never varied much from the World War II stories of tank attacks shoving the flaming hulks of the first wave out of the way, for the second wave to be destroyed in turn, until the Germans ran out of ammunition. Almost anything NATO could supply would be very hard to employ on the battlefield without training, and time for training is what the Ukrainians do not have.

In this sense, “training” doesn’t just mean “here’s the operator’s manual.” It means that the whole operational and tactical doctrine of the army has to be redesigned around the new weapons systems.

It’s not just the actual weapons, training and doctrine, either. Not to be unkind about it but Ukraine’s armed forces are almost completely hollowed out by official neglect, underfunding, and corruption. Back in May, Sarah Chayes reported on the pitiful state of Ukrainian military preparedness:

In a 2012 analysis Leonid Polyakov, another senior defense official, detailed the corrupt workings with remarkable candor. Chronic underfunding “enhanced the role of the human factor” in choosing among operational priorities. Ostensibly outdated equipment was sold “at unreasonably understated prices” in return for kickbacks. Officers even auctioned off defense ministry land. Gradually, Kyiv began requiring the military to cover more of its own costs, forcing senior officers into business, “which is…inconsistent with the armed forces’ mission,” and opened multiple avenues for corruption. Commanders took to “using military equipment, infrastructure, and…personnel [to] build private houses, [or] make repairs in their apartments.” Procurement fraud was rife, as were bribes to get into and through military academies, and for desirable assignments.

So even if Ukraine had taken advantage of NATO equipment, training, and support, much of the new kit would have disappeared into the same criminal enterprises which sold off so much of the old kit.

Russian FSB lured Estonian official into a trap

Filed under: Europe, Military, Russia — Tags: , , — Nicholas @ 08:26

In the Guardian, Julian Borger updates the situation in Estonia after the kidnapping of Eston Kohver by Russian forces:

The Estonian intelligence official seized by Russia thought he was going to meet an informant in a secluded spot on the border as part of an organised crime investigation but instead walked into an FSB trap, according to Estonian security sources.

Eston Kohver went to the arranged meeting at 9am on Friday in woodland near the village of Miikse, about five miles north of the official Luhamaa border post. He had armed backup in the form of Estonian security officers nearby but they were unable to react in time because of the use of flash grenades and because their communications were jammed.

By the time they realised what has happening, Kohver had been dragged into the woods on the Russian side of the border by a group of gunmen.

Kohver is now in Moscow where he is awaiting formal charges. Russian media have suggested he could be accused of spying; a pistol, a recording device and €5,000 in cash were displayed on Russian television as evidence.

Estonian security sources confirmed that all the items were Kohver’s but said it was entirely routine for him to be carrying them. The recording device and the cash were intended for the informant he thought he would be meeting.

The Russian-Ukrainian War

Filed under: Europe, Military, Russia — Tags: , , , — Nicholas @ 08:16

Paul Goble summarizes Konstantin Gaaze’s ten questions and answers about the war between Russia and Ukraine:

Gaaze’s first question is “Why did we (they) act as we (they) did with them (us)?” His answer: “President Putin considers that the Ukrainian state exists only because he agrees to its existence.” Consequently, “Moscow has acted from the false hypothesis that ‘Ukraine is not a state,’” something for which several thousand people have already paid with their lives.

But Kiev, the Moscow writer says, has also operated from a false hypothesis.” Ukrainian leaders believed that “Russia will not provide essential assistance to the local uprising in the east of Ukraine because it is intimidated by Western sanctions.” But Moscow isn’t, and it has intervened. Consequently, Ukraine has had to fight, and many have suffered as well.

His second question is “What has been obtained and how did the war end?” In Gaaze’s view, “the east of Ukraine belongs to people whose names we in fact do not know. Kiev has lost part of its territory but forever have been marginalized the future of the non-existence Novorossiya.”

“It will never become part of Russia,” Gaaze says, but “in the near term, it will not be part of Ukraine either. Millions of people thus are condemned to live in an enormous Transdniestria, to live between two armies, one of which (the Russian) is committed to destroy the other (the Ukrainian).” The first is only waiting for the order to do so.

Gaaze’s third question is this: “Was Putin fighting with Ukraine or with the West?” the answer is with both, but the results are different. “Kiev did not lose the war, but it did not win it either. The West,” in contrast, “lost the first round of the new Cold War. Moscow did what it wanted,” while the West did not act decisively because of various fears about the future.

“But the first round of the cold war is not the entire war,” Gaaze says. The West can recover. NATO can rearm. “There will be other rounds,” and Russia “will not be able to win them.”

September 7, 2014

Amazon and the taxman

Filed under: Britain, Business — Tags: , — Nicholas @ 11:52

Tim Worstall discusses how Amazon structures its business to meet various efficiency targets, a major one being the need to be as tax-efficient as possible. This upsets many political commentators, who all seem to believe that businesses should structure their activities to pay as much tax as possible:

… it’s exactly the tax laws that create one of those synergies that keeps Amazon as the one single company (even if with many different divisions and P&L centres). Because if it were a series of separate companies then those mature businesses, the ones making profits, could not simply switch their profits over to the subsidisation of those newer businesses. Instead, they would have to declare those profits, 35% would float off towards Uncle Sam and thus there would be less of that free cash flow to invest in those newer businesses.

The way the tax laws work are what keeps Amazon from splitting out those profitable businesses from those ones not yet mature enough to be making a profit.

Which brings me to the second point, one more about British political economy. We have a prolific commentator over here who insists on two separate points. I’ll not name him in order to spare his blushes but he’s often referred to as the UK’s leading tax expert. The first thing he insists upon is that Amazon doesn’t pay very much corporation tax (entirely true) but also that it ought to. The second is that many companies have vast amounts of cash, profits they have made in the past, which they don’t know what to do with. Those cash reserves should therefore be taxed away so that they can be spent on what our tax expert thinks are good uses for other peoples’ money. What I enjoy so much about this is that he manages to believe both things together. A company like Amazon, which obviously does know what to do with its free cash flow, should be taxed more. And companies that don’t know what to do with their free cash flow should also be taxed more.

It’s as if the only answer to anything ever is higher tax rates. Rather like if all you’ve got is a hammer then everything gets treated as a nail. I can’t help thinking that the views of a leading expert in anything, let alone tax, ought to be a little more subtle than that.

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