February 9, 2008

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    BEAUTIFUL CHILDREN A Novel Set In Las Vegas

    Rodgio Corral

    February 3, 2008

    Leaving Las Vegas

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    BEAUTIFUL CHILDREN

    By Charles Bock.

    417 pp. Random House. $25.

    Charles Bock, the son of Las Vegas pawnbrokers, spent much of his childhood behind the counter of his parents’ shop, staring out at desperate adults as they hocked their most precious possessions in hopes of restoring their luck. “From the back of the store,” he recalls on his Web site, “I’d watch as the customers exploded and called my parents dirty Jews and cursed at them and threatened them at the top of their lungs. It’s impossible in situations like that not to feel for everybody involved — to be horrified, sure, but more than that, to be saddened by the spectacle, to want so much more than that out of life for everyone.”

    After he left town, ending up on the East Coast for an M.F.A., Bock retained his searing memories. Now in his late 30s, he has spent a decade transforming them into his first novel, “Beautiful Children.” In it, he brings together the intersecting lives and innermost thoughts of parents and adolescents, strippers and pornographers, runaways and addicts, gamblers and comic-book illustrators, setting them against the neon-lit, heat-parched backdrop of Nevada, where “high walls and gated communities” join together in the night, “shimmering as if they were the surface of a translucent ocean,” and the colored towers of the Vegas Strip resemble a “distant row of glowing toys.” What should be said of the results of his labors? One word: bravo.

    Like a whirling roulette wheel, “Beautiful Children” presents a mesmerizing blur. Imagine each vivid slash of color as a character, with his or her own impetus toward loss and stubborn striving. Bock slows or stops the wheel at will, bringing each slot into saturated individual focus: “The lens zooms in, then draws back.” There are far too many to describe in detail — a grieving salesman, cold-shouldered by his wife, consoling himself with porn at the office; a slender nameless teenager known only as “the girl with the shaved head,” who has a near-terminal case of attitude and seeks perilous thrills at a desert rock concert; a balding, pear-shaped cartoonist, burdened with the name Bing Beiderbixxe, playing Doom-like video games into his 20s and nurturing sociopathic fantasies; a midget convenience-store clerk; a stripper who attaches sparklers to her pneumatic bosom to score extra tips. So let’s fix on just one: Ponyboy, a buff, tattooed, opportunistic wastrel, salivated over by drugged teenage girls as “Ponyboy of the Gibraltar biceps. Ponyboy the beautiful,” and leered at by an obese porn distributor nicknamed Jabba the Hutt.

    At the age of 20, Ponyboy pictures himself as a “pimped out Jedi” knight with a “kung fu grip” as he delivers X-rated videos to porn shops by mountain bike. He revels in the whine of the tattooer’s drill each time he gets new ink: “Electricity lit up Ponyboy’s skeletal structure as if it were a pinball machine on a multi-ball extravangza, and the mingling odors of brimstone and sulfur and sweat and burning skin filled Ponyboy’s nostrils.”

    Bock’s evocation of experiences most people will (mercifully) never share, and his depiction of each man, woman and child’s personal mythology is ravishing and raw. Each time he sets the wheel spinning, the mind races, tracking memories of distinct images amid the whir. As in a casino, all sense of time — and of day or night — disappears, as we wait to see where the ball will land.

    The story revolves around the disappearance of a surly 12-year-old on a hot Nevada night. The boy, Newell, is the son of Lorraine Ewing, a prudish former showgirl, and her husband, Lincoln, a casino sales rep who gave up his dream of playing with the Dodgers when the “halfhearted low fives” of his teammates showed him he would never cut it: “Lincoln had the curse of being good enough to see just how much better he needed to be.” Trapped in his “own personal cage,” he lacks the will to rein in his son’s rebellion.

    “You hit a certain point in your life, fact is, you clemently rejoice in your son’s truancy, you actually want your child out on the town, disobeying orders, breaking his curfew,” Lincoln tells himself. “Tasting his first beer. Chasing a good time. Trying to eat the world.” Sometimes, Lincoln rationalizes, in order to bond with a child, you have to let him go. But what if your child goes and, like thousands of American kids each year, doesn’t come back? What if, many months later, the last proof you have of his existence is a washed-out image of a “slouching, unexpressive child,” Photoshopped and “circulated in e-mail attachments, faxes and flyers,” tacked up in “arcades and student unions and youth hostels; in post offices and convenience stores and drop-in centers for the homeless and indigent,” his age eventually replaced by his date of birth because “nobody can say how long a child will be missing.”

    Newell’s mother torments herself, endlessly revisiting her son’s room, wondering what clues she missed: “How were you supposed to know? A 12-year-old boy is attracted to darkness. To special effects and sarcasm. Saying no when any idiot could see the answer was yes. If every boy with a short attention span and a propensity for smart remarks abandoned his life, who would be left?”

    Newell vanishes on a Saturday night during a sullen joyride with his greasy-haired teenage outcast friend, Kenny, whom he bullies and patronizes. As Kenny drives, Newell cracks open the window, looking for passersby to blast with a stolen fire extinguisher and thinking of all the things he wants to be when he grows up: “jet-setting billionaire secret agent with a heart of stone; superhero who sneaks around in darkness and comes up behind terrorists and slits their throats; international jewel thief on a Harley with mounted laser guns.”

    Children don’t understand the reality of the future. “Adulthood,” Bock writes, “with all its responsibilities and implications, is as impenetrable to a child as Martian trigonometry. That is one of the beauties of youth. And it is why someone has to be there, vigilant.” The fact that adults can’t always be vigilant — can’t anticipate the moment when the kid they’re trying not to alienate will make the awful, wrong decision — is the uncomfortable truth at the center of this splendid, disturbing novel. As Bock also shows, adults can’t even protect themselves from awful, wrong decisions.

    Early in the novel, Newell, Kenny and Beiderbixxe, the cartoonist, meet at a Saturday talk in a comics store called Amazin’ Stories, where Beiderbixxe has come to discuss his illustrated series, “Wendy Whitebread, Undercover Slut.” Newell isn’t impressed. Too young and undereducated to pick up on Beiderbixxe’s ironies, he’s bored. “Honestly, it wasn’t exactly easy to get jazzed about Bing Beiderbixxe,” he thinks, puffed up with preteen scorn. “From the looks of things, Newell wasn’t alone in this opinion. The store was largely empty, just a few underclassman types solemnly wandering the new arrivals racks, and three or four guys standing a respectful distance from the autograph table, nodding and listening, but seeming unconvinced.”

    Reading that scene, I remembered the time, last fall, when I unwittingly stumbled on Charles Bock, reading from this book at a now-defunct club called Mo Pitkin’s House of Satisfaction. Bock had chosen a selection about the girl with the shaved head and the attitude, and as he spoke, transmitting her self-consciousness, slick with the clichés that are as much a part of a teenage girl’s wardrobe as lip gloss, I couldn’t anticipate the art that lay behind the larger work. I pouted like Newell, didn’t get it. Coming across the scene again in the novel, I sheepishly saw that its “limitations” were only the natural ones of a girl who could be no wiser, at 15 or 16, than she was.

    In “Beautiful Children,” Bock’s vision and voice create a fictional landscape as corruptly compelling as Vegas, and as beautiful as the illusions its characters cling to for survival — illustrating what he calls “the nobility inherent in struggles that cannot be won.”

    Liesl Schillinger is a regular contributor to the Book Review.


     
     
    What did Israel bomb in Syria?


    Annals of National Security

    A Strike in the Dark

    What did Israel bomb in Syria?

    by Seymour M. Hersh February 11, 2008

    Israel and the U.S. have avoided comment on press reports about a nuclear facility.

    Israel and the U.S. have avoided comment on press reports about a nuclear facility.

    Within hours of the attack, Syria denounced Israel for invading its airspace, but its public statements were incomplete and contradictory—thus adding to the mystery. A Syrian military spokesman said only that Israeli planes had dropped some munitions in an unpopulated area after being challenged by Syrian air defenses, “which forced them to flee.” Four days later, Walid Moallem, the Syrian foreign minister, said during a state visit to Turkey that the Israeli aircraft had used live ammunition in the attack, but insisted that there were no casualties or property damage. It was not until October 1st that Syrian President Bashar Assad, in an interview with the BBC, acknowledged that the Israeli warplanes had hit their target, which he described as an “unused military building.” Assad added that Syria reserved the right to retaliate, but his comments were muted.

    Despite official silence in Tel Aviv (and in Washington), in the days after the bombing the American and European media were flooded with reports, primarily based on information from anonymous government sources, claiming that Israel had destroyed a nascent nuclear reactor that was secretly being assembled in Syria, with the help of North Korea. Beginning construction of a nuclear reactor in secret would be a violation of Syria’s obligations under the Nuclear Non-Proliferation Treaty, and could potentially yield material for a nuclear weapon.

    The evidence was circumstantial but seemingly damning. The first reports of Syrian and North Korean nuclear coöperation came on September 12th in the Times and elsewhere. By the end of October, the various media accounts generally agreed on four points: the Israeli intelligence community had learned of a North Korean connection to a construction site in an agricultural area in eastern Syria; three days before the bombing, a “North Korean ship,” identified as the Al Hamed, had arrived at the Syrian port of Tartus, on the Mediterranean; satellite imagery strongly suggested that the building under construction was designed to hold a nuclear reactor when completed; as such, Syria had crossed what the Israelis regarded as the “red line” on the path to building a bomb, and had to be stopped. There were also reports—by ABC News and others—that some of the Israeli intelligence had been shared in advance with the United States, which had raised no objection to the bombing.

    The Israeli government still declined to make any statement about the incident. Military censorship on dispatches about the raid was imposed for several weeks, and the Israeli press resorted to recycling the disclosures in the foreign press. In the first days after the attack, there had been many critical stories in the Israeli press speculating about the bombing, and the possibility that it could lead to a conflict with Syria. Larry Derfner, a columnist writing in the Jerusalem Post, described the raid as “the sort of thing that starts wars.” But, once reports about the nuclear issue and other details circulated, the domestic criticism subsided.

    At a news conference on September 20th, President George W. Bush was asked about the incident four times but said, “I’m not going to comment on the matter.” The lack of official statements became part of the story. “The silence from all parties has been deafening,” David Ignatius wrote in the Washington Post, “but the message to Iran”—which the Administration had long suspected of pursuing a nuclear weapon—”is clear: America and Israel can identify nuclear targets and penetrate air defenses to destroy them.”

    It was evident that officials in Israel and the United States, although unwilling to be quoted, were eager for the news media to write about the bombing. Early on, a former officer in the Israel Defense Forces with close contacts in Israeli intelligence approached me, with a version of the standard story, including colorful but, as it turned out, unconfirmable details: Israeli intelligence tracking the ship from the moment it left a North Korean port; Syrian soldiers wearing protective gear as they off-loaded the cargo; Israeli intelligence monitoring trucks from the docks to the target site. On October 3rd, the London Spectator, citing much of the same information, published an overheated account of the September 6th raid, claiming that it “may have saved the world from a devastating threat,” and that “a very senior British ministerial source” had warned, “If people had known how close we came to World War Three that day there’d have been mass panic.”

    However, in three months of reporting for this article, I was repeatedly told by current and former intelligence, diplomatic, and congressional officials that they were not aware of any solid evidence of ongoing nuclear-weapons programs in Syria. It is possible that Israel conveyed intelligence directly to senior members of the Bush Administration, without it being vetted by intelligence agencies. (This process, known as “stovepiping,” overwhelmed U.S. intelligence before the war in Iraq.) But Mohamed ElBaradei, the director-general of the International Atomic Energy Agency, the United Nations group responsible for monitoring compliance with the Nuclear Non-Proliferation Treaty, said, “Our experts who have carefully analyzed the satellite imagery say it is unlikely that this building was a nuclear facility.”

    Joseph Cirincione, the director for nuclear policy at the Center for American Progress, a Washington, D.C., think tank, told me, “Syria does not have the technical, industrial, or financial ability to support a nuclear-weapons program. I’ve been following this issue for fifteen years, and every once in a while a suspicion arises and we investigate and there’s nothing. There was and is no nuclear-weapons threat from Syria. This is all political.” Cirincione castigated the press corps for its handling of the story. “I think some of our best journalists were used,” he said.

    A similar message emerged at briefings given to select members of Congress within weeks of the attack. The briefings, conducted by intelligence agencies, focussed on what Washington knew about the September 6th raid. One concern was whether North Korea had done anything that might cause the U.S. to back away from ongoing six-nation talks about its nuclear program. A legislator who took part in one such briefing said afterward, according to a member of his staff, that he had heard nothing that caused him “to have any doubts” about the North Korean negotiations—”nothing that should cause a pause.” The legislator’s conclusion, the staff member said, was “There’s nothing that proves any perfidy involving the North Koreans.”

    Morton Abramowitz, a former Assistant Secretary of State for intelligence and research, told me that he was astonished by the lack of response. “Anytime you bomb another state, that’s a big deal,” he said. “But where’s the outcry, particularly from the concerned states and the U.N.? Something’s amiss.”

    Israel could, of course, have damning evidence that it refuses to disclose. But there are serious and unexamined contradictions in the various published accounts of the September 6th bombing.

    The main piece of evidence to emerge publicly that Syria was building a reactor arrived on October 23rd, when David Albright, of the Institute for Science and International Security, a highly respected nonprofit research group, released a satellite image of the target. The photograph had been taken by a commercial satellite company, DigitalGlobe, of Longmont, Colorado, on August 10th, four weeks before the bombing, and showed a square building and a nearby water-pumping station. In an analysis released at the same time, Albright, a physicist who served as a weapons inspector in Iraq, concluded that the building, as viewed from space, had roughly the same length and width as a reactor building at Yongbyon, North Korea’s main nuclear facility. “The tall building in the image may house a reactor under construction and the pump station along the river may have been intended to supply cooling water to the reactor,” Albright said. He concluded his analysis by posing a series of rhetorical questions that assumed that the target was a nuclear facility:



    How far along was the reactor construction project when it was bombed? What was the extent of nuclear assistance from North Korea? Which reactor components did Syria obtain from North Korea or elsewhere, and where are they now?

    He was later quoted in the Washington Post saying, “I’m pretty convinced that Syria was trying to build a nuclear reactor.”

    When I asked Albright how he had pinpointed the target, he told me that he and a colleague, Paul Brannan, “did a lot of hard work”—culling press reports and poring over DigitalGlobe imagery—”before coming up with the site.” Albright then shared his findings with Robin Wright and other journalists at the Post, who, after checking with Administration officials, told him that the building was, indeed, the one targeted by the Israelis. “We did not release the information until we got direct confirmation from the Washington Post,” he told me. The Post’s sources in the Administration, he understood, had access to far more detailed images obtained by U.S. intelligence satellites. The Post ran a story, without printing the imagery, on October 19th, reporting that “U.S. and foreign officials familiar with the aftermath of the attack” had concluded that the site had the “signature,” or characteristics, of a reactor “similar in structure to North Korea’s facilities”—a conclusion with which Albright then agreed. In other words, the Albright and the Post reports, which appeared to independently reinforce each other, stemmed in part from the same sources.

    Albright told me that before going public he had met privately with Israeli officials. “I wanted to be sure in my own mind that the Israelis thought it was a reactor, and I was,” he said. “They never explicitly said it was nuclear, but they ruled out the possibility that it was a missile, chemical-warfare, or radar site. By a process of elimination, I was left with nuclear.”

    Two days after his first report, Albright released a satellite image of the bombed site, taken by DigitalGlobe on October 24th, seven weeks after the bombing. The new image showed that the target area had been levelled and the ground scraped. Albright said that it hinted of a coverup—cleansing the bombing site could make it difficult for weapons inspectors to determine its precise nature. “It looks like Syria is trying to hide something and destroy the evidence of some activity,” he told the Times. “But it won’t work. Syria has got to answer questions about what it was doing.” This assessment was widely shared in the press. (In mid-January, the Times reported that recent imagery from DigitalGlobe showed that a storage facility, or something similar, had been constructed, in an obvious rush, at the bombing site.)

    Proliferation experts at the International Atomic Energy Agency and others in the arms-control community disputed Albright’s interpretation of the images. “People here were baffled by this, and thought that Albright had stuck his neck out,” a diplomat in Vienna, where the I.A.E.A. is headquartered, told me. “The I.A.E.A. has been consistently telling journalists that it is skeptical about the Syrian nuclear story, but the reporters are so convinced.”

    A second diplomat in Vienna acidly commented on the images: “A square building is a square building.” The diplomat, who is familiar with the use of satellite imagery for nuclear verification, added that the I.A.E.A. “does not have enough information to conclude anything about the exact nature of the facility. They see a building with some geometry near a river that could be identified as nuclear-related. But they cannot credibly conclude that is so. As far as information coming from open sources beyond imagery, it’s a struggle to extract information from all of the noise that comes from political agendas.”

    Much of what one would expect to see around a secret nuclear site was lacking at the target, a former State Department intelligence expert who now deals with proliferation issues for the Congress said. “There is no security around the building,” he said. “No barracks for the Army or the workers. No associated complex.” Jeffrey Lewis, who heads the non-proliferation program at the New America Foundation, a think tank in Washington, told me that, even if the width and the length of the building were similar to the Korean site, its height was simply not sufficient to contain a Yongbyon-size reactor and also have enough room to extract the control rods, an essential step in the operation of the reactor; nor was there evidence in the published imagery of major underground construction. “All you could see was a box,” Lewis said. “You couldn’t see enough to know how big it will be or what it will do. It’s just a box.”

    A former senior U.S. intelligence official, who has access to current intelligence, said, “We don’t have any proof of a reactor—no signals intelligence, no human intelligence, no satellite intelligence.” Some well-informed defense consultants and former intelligence officials asked why, if there was compelling evidence of nuclear cheating involving North Korea, a member of the President’s axis of evil, and Syria, which the U.S. considers a state sponsor of terrorism, the Bush Administration would not insist on making it public.

    When I went to Israel in late December, the government was still maintaining secrecy about the raid, but some current and former officials and military officers were willing to speak without attribution. Most were adamant that Israel’s intelligence had been accurate. “Don’t you write that there was nothing there!” a senior Israeli official, who is in a position to know the details of the raid on Syria, said, shaking a finger at me. “The thing in Syria was real.”

    Retired Brigadier General Shlomo Brom, who served as deputy national-security adviser under Prime Minister Ehud Barak, told me that Israel wouldn’t have acted if it hadn’t been convinced that there was a threat. “It may have been a perception of a conviction, but there was something there,” Brom said. “It was the beginning of a nuclear project.” However, by the date of our talk, Brom told me, “The question of whether it was there or not is not that relevant anymore.”

    Albright, when I spoke to him in December, was far more circumspect than he had been in October. “We never said ‘we know’ it was a reactor, based on the image,” Albright said. “We wanted to make sure that the image was consistent with a reactor, and, from my point of view, it was. But that doesn’t confirm it’s a reactor.”

    The journey of the Al Hamed, a small coastal trader, became a centerpiece in accounts of the September 6th bombing. On September 15th, the Washington Post reported that “a prominent U.S. expert on the Middle East” said that the attack “appears to have been linked to the arrival . . . of a ship carrying material from North Korea labeled as cement.” The article went on to cite the expert’s belief that “the emerging consensus in Israel was that it delivered nuclear equipment.” Other press reports identified the Al Hamed as a “suspicious North Korean” ship.

    But there is evidence that the Al Hamed could not have been carrying sensitive cargo—or any cargo—from North Korea. International shipping is carefully monitored by Lloyd’s Marine Intelligence Unit, which relies on a network of agents as well as on port logs and other records. In addition, most merchant ships are now required to operate a transponder device called an A.I.S., for automatic identification system. This device, which was on board the Al Hamed, works in a manner similar to a transponder on a commercial aircraft—beaming a constant, very high-frequency position report. (The U.S. Navy monitors international sea traffic with the aid of dedicated satellites, at a secret facility in suburban Washington.)

    According to Marine Intelligence Unit records, the Al Hamed, which was built in 1965, had been operating for years in the eastern Mediterranean and the Black Sea, with no indication of any recent visits to North Korea. The records show that the Al Hamed arrived at Tartus on September 3rd—the ship’s fifth visit to Syria in five months. (It was one of eight ships that arrived that day; although it is possible that one of the others was carrying illicit materials, only the Al Hamed has been named in the media.) The ship’s registry was constantly changing. The Al Hamed flew the South Korean flag before switching to North Korea in November of 2005, and then to Comoros. (Ships often fly flags of convenience, registering with different countries, in many cases to avoid taxes or onerous regulations.) At the time of the bombing, according to Lloyd’s, it was flying a Comoran flag and was owned by four Syrian nationals. In earlier years, under other owners, the ship seems to have operated under Russian, Estonian, Turkish, and Honduran flags. Lloyd’s records show that the ship had apparently not passed through the Suez Canal—the main route from the Mediterranean to the Far East—since at least 1998.

    Among the groups that keep track of international shipping is Greenpeace. Martini Gotjé, who monitors illegal fishing for the organization and was among the first to raise questions about the Al Hamed, told me, “I’ve been at sea for forty-one years, and I can tell you, as a captain, that the Al Hamed was nothing—in rotten shape. You wouldn’t be able to load heavy cargo on it, as the floorboards wouldn’t be that strong.”

    If the Israelis’ target in Syria was not a nuclear site, why didn’t the Syrians respond more forcefully? Syria complained at the United Nations but did little to press the issue. And, if the site wasn’t a partially built reactor, what was it?

    During two trips to Damascus after the Israeli raid, I interviewed many senior government and intelligence officials. None of President Assad’s close advisers told me the same story, though some of the stories were more revealing—and more plausible—than others. In general, Syrian officials seemed more eager to analyze Israel’s motives than to discuss what had been attacked. “I hesitate to answer any journalist’s questions about it,” Faruq al-Shara, the Syrian Vice-President, told me. “Israel bombed to restore its credibility, and their objective is for us to keep talking about it. And by answering your questions I serve their objective. Why should I volunteer to do that?” Shara denied that his nation has a nuclear-weapons program. “The volume of articles about the bombing is incredible, and it’s not important that it’s a lie,” he said.

    One top foreign-ministry official in Damascus told me that the target “was an old military building that had been abandoned by the Syrian military” years ago. But a senior Syrian intelligence general gave me a different account. “What they targeted was a building used for fertilizer and water pumps,” he said—part of a government effort to revitalize farming. “There is a large city”— Dayr az Zawr—”fifty kilometres away. Why would Syria put nuclear material near a city?” I interviewed the intelligence general again on my second visit to Damascus, and he reiterated that the targeted building was “at no time a military facility.” As to why Syria had not had a more aggressive response, if the target was so benign, the general said, “It was not fear—that’s all I’ll say.” As I left, I asked the general why Syria had not invited representatives of the International Atomic Energy Agency to visit the bombing site and declare that no nuclear activity was taking place there. “They did not ask to come,” he said, and “Syria had no reason to ask them to come.”

    An I.A.E.A. official dismissed that assertion when we spoke in Vienna a few days later. “The I.A.E.A. asked the Syrians to allow the agency to visit the site to verify its nature,” the I.A.E.A. official said. “Syria’s reply was that it was a military, not a nuclear, installation, and there would be no reason for the I.A.E.A. to go there. It would be in their and everyone’s interest to have the I.A.E.A. visit the site. If it was nuclear, it would leave fingerprints.”

    In a subsequent interview, Imad Moustapha, the Syrian Ambassador to Washington, defended Syria’s decision not to invite the I.A.E.A. inspectors. “We will not get into the game of inviting foreign experts to visit every site that Israel claims is a nuclear facility,” Moustapha told me. “If we bring them in and they say there is nothing there, then Israel will say it made a mistake and bomb another site two weeks later. And if we then don’t let the I.A.E.A. in, Israel will say, ‘You see?’ This is nonsense. Why should we have to do this?”

    Even if the site was not a nuclear installation, it is possible that the Syrians feared that an I.A.E.A. inquiry would uncover the presence of North Koreans there. In Syria, I was able to get some confirmation that North Koreans were at the target. A senior officer in Damascus with firsthand knowledge of the incident agreed to see me alone, at his home; my other interviews in Damascus took place in government offices. According to his account, North Koreans were present at the site, but only as paid construction workers. The senior officer said that the targeted building, when completed, would most likely have been used as a chemical-warfare facility. (Syria is not a signatory to the Chemical Weapons Convention and has been believed, for decades, to have a substantial chemical-weapons arsenal.)

    The building contract with North Korea was a routine business deal, the senior officer said—from design to construction. (North Korea may, of course, have sent skilled technicians capable of doing less routine work.) Syria and North Korea have a long-standing partnership on military matters. “The contract between Syria and North Korea was old, from 2002, and it was running late,” the senior officer told me. “It was initially to be finished in 2005, and the Israelis might have expected it was further along.”

    The North Korean laborers had been coming and going for “maybe six months” before the September bombing, the senior officer said, and his government concluded that the Israelis had picked up North Korean telephone chatter at the site. (This fit the timeline that Israeli officials had given me.) “The Israelis may have their own spies and watched the laborers being driven to the area,” the senior officer said. “The Koreans were not there at night, but slept in their quarters and were driven to the site in the morning. The building was in an isolated area, and the Israelis may have concluded that even if there was a slight chance”—of it being a nuclear facility—”we’ll take that risk.”

    On the days before the bombing, the Koreans had been working on the second floor, and were using a tarp on top of the building to shield the site from rain and sun. “It was just the North Korean way of working,” the Syrian senior officer said, adding that the possibility that the Israelis could not see what was underneath the tarp might have added to their determination.

    The attack was especially dramatic, the Syrian senior officer said, because the Israelis used bright magnesium illumination flares to light up the target before the bombing. Night suddenly turned into day, he told me. “When the people in the area saw the lights and the bombing, they thought there would be a commando raid,” the senior officer said. The building was destroyed, and his government eventually concluded that there were no Israeli ground forces in the area. But if Israelis had been on the ground seeking contaminated soil samples, the senior officer said, “they found only cement.”

    A senior Syrian official confirmed that a group of North Koreans had been at work at the site, but he denied that the structure was related to chemical warfare. Syria had concluded, he said, that chemical warfare had little deterrent value against Israel, given its nuclear capability. The facility that was attacked, the official said, was to be one of a string of missile-manufacturing plants scattered throughout Syria—”all low tech. Not strategic.” (North Korea has been a major exporter of missile technology and expertise to Syria for decades.) He added, “We’ve gone asymmetrical, and have been improving our capability to build low-tech missiles that will enable us to inflict as much damage as possible without confronting the Israeli Army. We now can hit all of Israel, and not just the north.”

    Whatever was under construction, with North Korean help, it apparently had little to do with agriculture—or with nuclear reactors—but much to do with Syria’s defense posture, and its military relationship with North Korea. And that, perhaps, was enough to silence the Syrian government after the September 6th bombing.

    It is unclear to what extent the Bush Administration was involved in the Israeli attack. The most detailed report of coöperation was made in mid-October by ABC News. Citing a senior U.S. official, the network reported that Israel had shared intelligence with the United States and received satellite help and targeting information in response. At one point, it was reported, the Bush Administration considered attacking Syria itself, but rejected that option. The implication was that the Israeli intelligence about the nuclear threat had been vetted by the U.S., and had been found to be convincing.

    Yet officials I spoke to in Israel heatedly denied the notion that they had extensive help from Washington in planning the attack. When I told the senior Israeli official that I found little support in Washington for Israel’s claim that it had bombed a nuclear facility in Syria, he responded with an expletive, and then said, angrily, “Nobody helped us. We did it on our own.” He added, “What I’m saying is that nobody discovered it for us.” (The White House declined to comment on this story.)

    There is evidence to support this view. The satellite operated by DigitalGlobe, the Colorado firm that supplied Albright’s images, is for hire; anyone can order the satellite to photograph specific coördinates, a process that can cost anywhere from several hundred to hundreds of thousands of dollars. The company displays the results of these requests on its Web page, but not the identity of the customer. On five occasions between August 5th and August 27th of last year—before the Israeli bombing—DigitalGlobe was paid to take a tight image of the targeted building in Syria.

    Clearly, whoever ordered the images likely had some involvement in plans for the attack. DigitalGlobe does about sixty per cent of its business with the U.S. government, but those contracts are for unclassified work, such as mapping. The government’s own military and intelligence satellite system, with an unmatched ability to achieve what analysts call “highly granular images,” could have supplied superior versions of the target sites. Israel has at least two military satellite systems, but, according to Allen Thomson, a former C.I.A. analyst, DigitalGlobe’s satellite has advantages for reconnaissance, making Israel a logical customer. (“Customer anonymity is crucial to us,” Chuck Herring, a spokesman for DigitalGlobe, said. “I don’t know who placed the order and couldn’t disclose it if I did.”) It is also possible that Israel or the United States ordered the imagery in order to have something unclassified to pass to the press if needed. If the Bush Administration had been aggressively coöperating with Israel before the attack, why would Israel have to turn to a commercial firm?

    Last fall, aerospace industry and military sources told Aviation Week & Space Technology, an authoritative trade journal, that the United States had provided Israel with advice about “potential target vulnerabilities” before the September 6th attack, and monitored the radar as the mission took place. The magazine reported that the Israeli fighters, prior to bombing the target on the Euphrates, struck a Syrian radar facility near the Turkish border, knocking the radar out of commission and permitting them to complete their mission without interference.

    The former U.S. senior intelligence official told me that, as he understood it, America’s involvement in the Israeli raid dated back months earlier, and was linked to the Administration’s planning for a possible air war against Iran. Last summer, the Defense Intelligence Agency came to believe that Syria was installing a new Russian-supplied radar-and-air-defense system that was similar to the radar complexes in Iran. Entering Syrian airspace would trigger those defenses and expose them to Israeli and American exploitation, yielding valuable information about their capabilities. Vice-President Dick Cheney supported the idea of overflights, the former senior intelligence official said, because “it would stick it to Syria and show that we’re serious about Iran.” (The Vice-President’s office declined to comment.) The former senior intelligence official said that Israeli military jets have flown over Syria repeatedly, without retaliation from Syria. At the time, the former senior intelligence official said, the focus was on radar and air defenses, and not on any real or suspected nuclear facility. Israel’s claims about the target, which emerged later, caught many in the military and intelligence community—if not in the White House—by surprise.

    The senior Israeli official, asked whether the attack was rooted in his country’s interest in Syria’s radar installations, told me, “Bullshit.” Whatever the Administration’s initial agenda, Israel seems to have been after something more.

    The story of the Israeli bombing of Syria, with its mixture of satellite intelligence, intercepts, newspaper leaks, and shared assumptions, reminded some American diplomats and intelligence officials of an incident, ten years ago, involving North Korea. In mid-1998, American reconnaissance satellites photographed imagery of a major underground construction project at Kumchang-ri, twenty-five miles northwest of Yongbyon. “We were briefed that, without a doubt, this was a nuclear-related facility, and there was signals intelligence linking the construction brigade at Kumchang-ri to the nuclear complex at Yongbyon,” the former State Department intelligence expert recalled.

    Charles Kartman, who was President Bill Clinton’s special envoy for peace talks with Korea, told me that the intelligence was considered a slam dunk by analysts in the Defense Intelligence Agency, even though other agencies disagreed. “We had a debate going on inside the community, but the D.I.A. unilaterally took it to Capitol Hill,” Kartman said, forcing the issue and leading to a front-page Times story.

    After months of negotiations, Kartman recalled, the North Koreans agreed, under diplomatic pressure, to grant access to Kumchang-ri. In return, they received aid, including assistance with a new potato-production program. Inspectors found little besides a series of empty tunnels. Robert Carlin, an expert on North Korea who retired in 2005 after serving more than thirty years with the C.I.A. and the State Department’s intelligence bureau, told me that the Kumchang-ri incident highlighted “an endemic weakness” in the American intelligence community. “People think they know the ending and then they go back and find the evidence that fits their story,” he said. “And then you get groupthink—and people reinforce each other.”

    It seems that, as with Kumchang-ri, there was a genuine, if not unanimous, belief by Israeli intelligence that the Syrians were constructing something that could have serious national-security consequences. But why would the Israelis take the risk of provoking a military response, and perhaps a war, if there was, as it seems, no smoking gun? Mohamed ElBaradei, expressing his frustration, said, “If a country has any information about a nuclear activity in another country, it should inform the I.A.E.A.—not bomb first and ask questions later.”

    One answer, suggested by David Albright, is that Israel did not trust the international arms-control community. “I can understand the Israeli point of view, given the history with Iran and Algeria,” Albright said. “Both nations had nuclear-weapons programs and, after being caught cheating, declared their reactors to be civil reactors, for peacetime use. The international groups, like the U.N. and the I.A.E.A, never shut them down.” Also, Israel may have calculated that risk of a counterattack was low: President Assad would undoubtedly conclude that the attack had the support of the Bush Administration and, therefore, that any response by Syria would also engage the U.S. (My conversations with officials in Syria bore out this assumption.)

    In Tel Aviv, the senior Israeli official pointedly told me, “Syria still thinks Hezbollah won the war in Lebanon”—referring to the summer, 2006, fight between Israel and the Shiite organization headed by Sheikh Hassan Nasrallah. “Nasrallah knows how much that war cost—one-third of his fighters were killed, infrastructure was bombed, and ninety-five per cent of his strategic weapons were wiped out,” the Israeli official said. “But Assad has a Nasrallah complex and thinks Hezbollah won. And, ‘If he did it, I can do it.’ This led to an adventurous mood in Damascus. Today, they are more sober.”

    That notion was echoed by the ambassador of an Israeli ally who is posted in Tel Aviv. “The truth is not important,” the ambassador told me. “Israel was able to restore its credibility as a deterrent. That is the whole thing. No one will know what the real story is.”

    There is evidence that the preëmptive raid on Syria was also meant as a warning about—and a model for—a preëmptive attack on Iran. When I visited Israel this winter, Iran was the overriding concern among political and defense officials I spoke to—not Syria. There was palpable anger toward Washington, in the wake of a National Intelligence Estimate that concluded, on behalf of the American intelligence community, that Iran is not now constructing a nuclear weapon. Many in Israel view Iran’s nuclear ambitions as an existential threat; they believe that military action against Iran may be inevitable, and worry that America may not be there when needed. The N.I.E. was published in November, after a yearlong standoff involving Cheney’s office, which resisted the report’s findings. At the time of the raid, reports about the forthcoming N.I.E. and its general conclusion had already appeared.

    Retired Major General Giora Eiland, who served as the national-security adviser to Prime Minister Ariel Sharon, told me, “The Israeli military takes it as an assumption that one day we will need to have a military campaign against Iran, to slow and eliminate the nuclear option.” He added, “Whether the political situation will allow this is another question.”

    In the weeks after the N.I.E.’s release, Bush insisted that the Iranian nuclear-weapons threat was as acute as ever, a theme he amplified during his nine-day Middle East trip after the New Year. “A lot of people heard that N.I.E. out here and said that George Bush and the Americans don’t take the Iranian threat seriously,” he told Greta Van Susteren, of Fox News. “And so this trip has been successful from the perspective of saying . . . we will keep the pressure on.”

    Shortly after the bombing, a Chinese envoy and one of the Bush Administration’s senior national-security officials met in Washington. The Chinese envoy had just returned from a visit to Tehran, a person familiar with the discussion told me, and he wanted the White House to know that there were moderates there who were interested in talks. The national-security official rejected that possibility and told the envoy, as the person familiar with the discussion recalled, “‘You are aware of the recent Israeli statements about Syria. The Israelis are extremely serious about Iran and its nuclear program, and I believe that, if the United States government is unsuccessful in its diplomatic dealings with Iran, the Israelis will take it out militarily.’ He then told the envoy that he wanted him to convey this to his government—that the Israelis were serious.

    “He was telling the Chinese leadership that they’d better warn Iran that we can’t hold back Israel, and that the Iranians should look at Syria and see what’s coming next if diplomacy fails,” the person familiar with the discussion said. “His message was that the Syrian attack was in part aimed at Iran.” ?

    ILLUSTRATION: GUY BILLOUT
     
     

    Pete Townsend and The Who’s Website

    Goings On

    Cultural happenings in New York and elsewhere, both online and off.

    February 8, 2008

    Who’s on First

    Andyou320px_2 The Who may be a classic-rock dinosaur, but when it comes to the Internet, its front man, Pete Townshend, was an early adopter. Which is putting it mildly: some reports have him claiming that he, in Al Gore fashion, invented it. He’s also had trouble with the law over his surfing habits. Lately, he’s been working with his girlfriend, the singer Rachel Fuller, to produce a live Internet festival this summer called Atticfest. And now it looks like his other bandmates are getting onboard—sort of. Roger Daltrey has posted the following message on the band’s Web site:

    Welcome to The Who’s first online home. I feel about as useful as a pork chop in a synagogue with all this Internet bollocks. I suppose it keeps millions of people in virtual conversation, which saves them getting too burned by reality, but as you may have gathered I’m not a big fan of it. I’m always ready to be won over though and will endeavour to give it my best shot to keep it interesting.
    It’s a bit of an empty room here at the moment (not all the furniture’s arrived yet) but it’s a start, which will evolve and grow to be a useful resource for you to keep up with what The Who is up to. And it’s great to have our music and our history as a band and as individuals in one place. Even if it is virtual.
    I hope you enjoy it. But do me a favour; leave the screen turned off sometimes. Go out. Get a life.
    Be lucky,
    Roger

    In terms of following Daltrey’s advice, it appears that Fuller, who used to have an Internet music show called “In the Attic,” in which she travelled around in a nineteen-fifties Airstream trailer and interviewed musicians, has given up that effort. Her Web site for the show has been shut down.—John Donohue

     
     
    Exxon Sets Profit Record: $40.6 Billion Last Year

    February 2, 2008

    By JAD MOUAWAD

    By any measure, Exxon Mobil‘s performance last year was a blowout.

    The company reported Friday that it beat its own record for the highest profits ever recorded by any company, with net income rising 3 percent, to $40.6 billion, thanks to surging oil prices. The company’s sales, more than $404 billion, exceeded the gross domestic product of 120 countries.

    Exxon Mobil earned more than $1,287 of profit for every second of 2007.

    The company also had its most profitable quarter ever. It said net income rose 14 percent, to $11.7 billion, or $2.13 a share, in the last three months of the year. The company handily beat analysts’ expectations of $1.95 a share, after missing targets in the last two quarters.

    Like most oil companies, Exxon benefited from a near doubling of oil prices, as well as higher demand for gasoline last year. Crude oil prices rose from a low of around $50 a barrel in early 2007 to almost $100 by the end of the year — the biggest jump in oil prices in any one year.

    “Exxon sets the gold standard for the industry,” said Fadel Gheit, an oil analyst at Oppenheimer & Company in New York.

    Oil companies have all reported strong profits in recent days. Chevron, the second-largest American oil company, said Friday that its profits rose 9 percent last year, to $18.7 billion; Royal Dutch Shell on Thursday reported net income for 2007 of $31 billion, up 23 percent and the largest figure ever for a British company.

    The backlash against the oil industry, which has periodically intensified as gasoline prices have risen in recent years, was predictably swift on Friday.

    One advocacy group, the Foundation for Taxpayer and Consumer Rights, called the profits “unjustifiable.” Some politicians said Congress should rescind the tax breaks awarded two years ago to encourage oil companies to increase their investments in the United States and raise domestic production.

    “Congratulations to Exxon Mobil and Chevron — for reminding Americans why they cringe every time they pull into a gas station,” said Senator Charles Schumer, Democrat of New York.

    Exxon vigorously defended itself against claims it was responsible for the rise in oil prices. Anticipating a reaction, Exxon has been running advertisements that highlight the size of the investments it makes to find and develop energy resources — more than $80 billion from 2002 to 2006, with an additional $20 billion planned for 2008. The company says that in the next two decades, energy demand is expected to grow by 40 percent.

    “Our earnings reflect the size of our business,” Kenneth P. Cohen, Exxon’s vice president for public affairs, said on a conference call with journalists. “We hope people will focus on the reality of the challenge we are facing.”

    Given the darkening prospects for the American economy, which may be headed toward a recession, some analysts said oil company profits might soon reach a peak. Oil prices could fall this year if an economic slowdown reduces energy consumption in the United States, the world’s biggest oil consumer.

    Such concerns have pushed oil futures prices down about 10 percent since the beginning of the year. Oil fell 3 percent, to $88.96 a barrel, on Friday on the New York Mercantile Exchange. Exxon shares fell a half-percent, to $85.95.

    Some analysts said high oil prices, and the record profits they create, were masking growing difficulties at many of the major Western oil giants. Faced with resurgent national oil companies — like PetroChina, Petrobras in Brazil, or Gazprom in Russia — the Western companies are having a hard time increasing production and renewing reserves.

    As oil prices increase, countries like Russia and Venezuela have tightened the screws on foreign investors in recent years, limiting access to energy resources or demanding a bigger share of the oil revenue. At the same time, many of the traditional production regions, like the North Sea and Alaska, are slowly drying up.

    Western majors, which once dominated the global energy business, now control only about 6 percent of the world’s oil reserves. Last year, PetroChina overtook Exxon as the world’s largest publicly traded oil company.

    Recently, a quarrel over a major new field in Kazakhstan was resolved after an international consortium, which included Exxon, allowed the Kazakh national oil company to double its stake in the multibillion-dollar venture. In Venezuela, Conoco pulled out of a large heavy oil project last summer after failing to agree on new and much more restrictive terms with the government of President Hugo Chávez. Exxon has filed for arbitration in a similar case.

    Speaking at an industry conference last month, Tim Cejka, the president of Exxon’s exploration business, acknowledged that access to oil fields was becoming increasingly challenging. But he said that the global oil industry has been through similar periods of restricted access.

    “Access comes in cycles,” Mr. Cejka said, “and I have got to admit, it’s tough right now.”

    Excluding acquisitions, Exxon was the only major international oil company with a reserve replacement rate exceeding 100 percent from 2004 to 2006, meaning it found more than one barrel for each barrel it produced, according to a report by Moody’s Investors Service, the rating agency. Exxon said it would release its reserve replacement figures this month.

    Exxon increased its hydrocarbon production in the fourth quarter by 1 percent, thanks to growing natural gas output from projects in Qatar. Natural gas production rose 12 percent in the fourth quarter, to 10.4 billion cubic feet a day. Oil production fell by 6 percent in the last quarter, to 2.5 million barrels a day. Because of the structure of some of its production-sharing contracts in Africa, Exxon is entitled to fewer oil barrels as prices rise.

    Exxon also spent $35.6 billion for share buybacks and dividends last year, $3 billion more than in 2006.

    The OPEC cartel, which was meeting in Vienna on Friday, left its production levels unchanged, resisting pressure from developing nations to pump more oil into the global economy.

    The Organization of the Petroleum Exporting Countries is set to meet again next month, and the cartel signaled it would be ready to cut production then to make up for a seasonal slowdown in demand in the second quarter. OPEC’s actions mean the cartel is determined to keep prices from falling below $80 a barrel, according to energy experts.

    OPEC said in a statement that the uncertainties in the global economy required “vigilant attention to their impact on key market fundamentals.”


     
    The Crisis In Bond Markets
    The New Yorker

    The Financial Page

    by James Surowiecki February 11, 2008

    If the ongoing turmoil in the world’s financial markets has made anything clear, it’s that the list of things that can go wrong in those markets is a very long one. Month after month, it seems, another potentially disastrous problem rises to the surface. The latest looming crisis is the possible implosion of a group of companies called monoline insurers. If you haven’t heard of monoline insurers, don’t worry: until recently, few people, even on Wall Street, were all that interested in them. Yet their problems have become a serious threat to global markets. Rumors that monoline insurers, like M.B.I.A. and Ambac, were in serious trouble helped spark the vast market sell-off that prompted the Federal Reserve’s interest-rate cut two weeks ago, and, only a few days later, rumors of a government-orchestrated bailout of these companies set off a six-hundred-point rally in the Dow.

    Monoline insurers do a straightforward job: they insure securities—guaranteeing, for instance, that if a bond defaults they’ll cover the interest and the principal. Historically, this was a fairly sleepy business; these companies got their start by insuring municipal bonds, which rarely default, and initially they confined themselves to bonds with relatively predictable risks, which were easy to put a price on. Unfortunately, a sleepy, straightforward business wasn’t good enough for the insurers. Like everyone else in recent years, they wanted to cash in on the housing and lending boom. In order to expand, they started insuring the complex securities that Wall Street created by packaging mortgages, including subprime ones, for investors. This was a lucrative business—M.B.I.A.’s revenues rose nearly a hundred and forty per cent between 2001 and 2006—but it rested on a false assumption: that the insurers knew how risky these securities really were. They didn’t. Instead, they gravely underestimated how likely the loans were to go bad, which meant that they didn’t charge enough for the insurance they were offering, and didn’t put away enough to cover the claims. They’re now on the hook for tens of billions of dollars in potential losses, and some estimates suggest that they’ll need more than a hundred billion to restore themselves to health.

    Obviously, this is bad news for the insurers—at one point, M.B.I.A.’s and Ambac’s stock prices were down more than ninety per cent from their all-time highs—but it’s also very dangerous for credit markets as a whole. This is because of a peculiar feature of bond insurance: insurers’ credit ratings get automatically applied to any bond they insure. M.B.I.A. and Ambac have enjoyed the highest rating possible, AAA. As a result, any bond they insured, no matter how junky, became an AAA security, which meant access to more investors and a generally lower interest rate. The problem is that this process works in reverse, too. If the insurers lose their AAA ratings—credit agencies have made clear that both companies are at risk of this, and one agency has already downgraded Ambac to AA—then the bonds they’ve insured will lose their ratings as well, which will leave investors holding billions upon billions in assets worth a lot less than they thought. That’s why so many people on Wall Street are pushing for a bailout for the insurers. It may be an abandonment of free-market principles, but no one has ever accused the Street of putting principle above profit.

    Normally when companies make bad decisions and fail to deliver value, it’s just their workers and investors who suffer. But monoline insurers’ desire to grab as much new business as they could, risks be damned, quickly radiated across global markets and will have huge consequences for millions of people who have never heard of M.B.I.A. or Ambac. The situation illustrates a fundamental paradox of today’s financial system: it’s bigger than ever, but terrible decisions by just a few companies—not even very big companies, at that—can make the entire edifice totter.

    In that sense, the potential collapse of monoline insurers looks like a classic example of what the sociologist Charles Perrow called a “normal accident.” In examining disasters like the Challenger explosion and the near-meltdown at Three Mile Island, Perrow argued that while the events were unforeseeable they were also, in some sense, inevitable, because of the complexity and the interconnectedness of the systems involved. When you have systems with lots of moving parts, he said, some of them are bound to fail. And if they are tightly linked to one another—as in our current financial system—then the failure of just a few parts cascades through the system. In essence, the more complicated and intertwined the system is, the smaller the margin of safety.

    Today, as financial markets become ever more complex, these kinds of unanticipated ripple effects are more common—think of the havoc wrought a couple of weeks ago when the activities of one rogue French trader came to light. In the past thirty years, thanks to the combination of globalization, deregulation, and the increase in computing power, we have seen an explosion in financial innovation. This innovation has had all kinds of benefits—making cheap capital available to companies and individuals who previously couldn’t get it, allowing risk to be more efficiently allocated, and widening the range of potential investments. On a day-to-day level, it may even have lowered volatility in the markets and helped make the real economy more stable. The problem is that these improvements have been accompanied by more frequent systemic breakdowns. It may be that investors accept periodic disasters as a price worth paying for the innovations of modern finance, but now is probably not the best time to ask them about it.

    ILLUSTRATION: CHRISTOPH NIEMANN

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