Vietnam to Get Sub Fleet in 6 Years: State Media

HANOI - Vietnam will have a submarine fleet within six years, the defense minister reportedly confirmed Aug. 4, in what analysts say is intended as a deterrent to China's increasing assertiveness at sea.

"In the coming five to six years, we will have a submarine brigade with six Kilo 636-Class subs," Defence Minister Phung Quang Thanh was quoted as saying by the state-controlled Tuoi Tre newspaper.

Russian media reported in December 2009 that Vietnam had agreed to buy half a dozen diesel-electric submarines for about $2 billion.

Thanh said the fleet was "definitely not meant as a menace to regional nations," according to the report.

"Buying submarines, missiles, fighter jets and other equipment is for self-defense," he was quoted as saying.

Ian Storey, a regional security analyst at the Institute of Southeast Asian Studies (ISEAS) in Singapore, said the submarine deal has been driven by events in the South China Sea, where China and Vietnam have a longstanding territorial spat over the Paracel and Spratly archipelagos.

Tensions rose after Vietnam in May accused Chinese marine surveillance vessels of cutting the exploration cables of an oil survey ship inside the country's exclusive economic zone.

"These purchases are designed to deter the Chinese from encroaching on Vietnamese sovereignty," Storey told AFP.

He said the country already operates two midget submarines bought years ago from North Korea.

In the newspaper report, Thanh did not specify how Vietnam was paying for its naval upgrade.

"It depends on our economic ability. Vietnam has yet to produce modern weapons and military equipment, which are costly to import," he said.

Analysts say the country's economy is in turmoil with galloping inflation, large trade and budget deficits, inefficient state spending, and other woes.

Much of Vietnam's military hardware is antiquated but this week it received the first of three new coastal patrol planes for the marine police, announced the manufacturer, Madrid-based Airbus Military.

Russian media reported last year that Vietnam ordered 12 Sukhoi Su-30MK2 warplanes in a deal worth about $1 billion.

Other nations in the region have accused China in recent months of becoming more aggressive in enforcing its claims to parts of the South China Sea.

The Philippines, Malaysia, Brunei and Taiwan also have overlapping claims to all or parts of the waters, which are potentially rich in oil and gas deposits and straddle vital commercial shipping lanes.

China: Japan's Defense Comments 'Irresponsible'

BEIJING - China launched a series of blistering attacks on key rival Japan on Aug. 4 after a defense paper approved by Tokyo criticized Beijing's military build-up and growing territorial assertiveness.

State news agency Xinhua went further, accusing Japan of "China bashing" and warning the document could jeopardize relations between the neighbors, while the defense ministry also issued a statement condemning the paper.

China's foreign ministry branded the paper "irresponsible," insisting Beijing's drive to modernise its forces was entirely defensive, and expressed its "strong dissatisfaction".

Japan's annual defense report, released this week, voiced concern over China's growing assertiveness in the South China Sea and Pacific Ocean, and what it called the "opaqueness" of Beijing's military budget.

"The Japanese 2011 defense white paper made irresponsible comments on China's national defense construction. China expresses its strong dissatisfaction," foreign ministry spokesman Ma Zhaoxu said.

"China's development is offering significant opportunities to all countries - including Japan - and China has not been, and never will be a threat to any other country."

China broke off all high-level contact with Tokyo last September after Japan detained a Chinese fishing boat captain whose vessel collided with Japanese coast guard patrol ships in waters claimed by both sides.

The row between Asia's two biggest economies was their worst in years and undermined painstaking recent efforts to improve relations marked by decades of mistrust stemming from Japan's 1930s invasion of China.

The Chinese skipper was released after more than two weeks and the two countries, which have deep trade ties, have been trying to mend fences.

Japan's defense report used a Japanese word that can be translated as "overbearing" or as "assertive" to describe China's stance over its "conflicting interests with neighboring countries, including Japan".

The paper also said China's defense spending was not transparent, saying that the budget publicly announced by China "is widely seen as only part of what Beijing actually spends for military purposes."

"Opaqueness in its defense policies and military movements are concerns for the region, including Japan, and for the international community, and we need to carefully analyze them," it said.

Xinhua called claims "groundless" and said the report "dutifully carries out its China-bashing tradition, nitpicking at China's defense expenditure growth and military modernization in the manner of a back seat driver".

Earlier this year, China announced military spending would rise 12.7 percent to 601.1 billion yuan ($91.7 billion) in 2011 after funding slowed last year.

Beijing has repeatedly sought to alleviate fears over its pursuit of sophisticated missiles, satellites, cyber-weapons and fighter jets, stressing that the nation's defense policy is "defensive in nature."

It has invested heavily in developing its first stealth fighter jet, revealed in January, as well as an aircraft carrier and anti-ballistic missile capable of piercing the defenses of even the most sturdy U.S. naval ships.

However, China has become increasingly assertive in its claims over the East China Sea and South China Sea, most of which it views as its maritime territory, but where several other Asian nations have competing claims.

Huge Cyber Spying Effort Revealed, China Suspected

WASHINGTON - The United States, United Nations, defense contractors and the International Olympic Committee were targets of a massive global cyber spying campaign, a computer security firm said on Aug. 3, with China seen as the likely culprit.

McAfee vice president for threat research Dmitri Alperovitch described it as a "five-year targeted operation by one specific actor" but declined to identify the country responsible.

California-based McAfee said in a report it had identified 72 victims in 14 countries of a sophisticated hacking effort dubbed "Operation Shady RAT," which it traced back to at least 2006.

The "compromised parties" included the governments of Canada, India, South Korea, Taiwan, the United States and Vietnam, McAfee said, as well as a U.S. Department of Energy research laboratory and around a dozen U.S. defense contractors.

Others included computer networks of the United Nations, the Association of Southeast Asian Nations, the International Olympic Committee, Asian and Western national Olympic committees and the Montreal-based World Anti-Doping Agency.

In a conference call with reporters, Alperovitch, the lead author of the report, said the intrusions into the systems of defense contractors targeted "sensitive military technologies."

He said McAfee had notified law enforcement about the cyber espionage campaign, briefed the White House and members of the U.S. Congress and was working with some of the targeted companies on remediation efforts.

"We believe based on the targeting and the scale and the impact of these operations, and the fact that they didn't just have an economic gain in mind but also political and military, that that this is clearly a nation-state but we're not pointing the finger at anyone," Alperovitch said.

James Lewis, a cybersecurity expert at the Center for Strategic and International Studies, said the evidence may not be "conclusive in a legal sense," but suspicion points towards China.

"You can think of at least three other large programs attributed to China that look very similar," Lewis told AFP. "It's a pattern of activity that we've seen before."

Google said in June that a cyber spying campaign originating in China had targeted Gmail accounts of senior U.S. officials, military personnel, journalists and Chinese political activists.

In January of last year, Google announced it was halting censorship of its Internet search engine in China after coming under attack along with 20 other companies from hackers based there.

In February, McAfee said in another report that hackers in China have penetrated computer networks of global oil companies, stealing financial documents on bidding plans and other confidential information.

McAfee said it had discovered the "Shady RAT" series of cyber attacks by gaining access to a command and control server in a Western country used by the intruders and examining its logs.

"After painstaking analysis of the logs, even we were surprised by the enormous diversity of the victim organizations and were taken aback by the audacity of the perpetrators," McAfee said.

McAfee said attacks on Asian and Western national Olympic committees, the International Olympic Committee and the World Anti-Doping Agency occurred in the lead-up and immediate follow-up to the 2008 Beijing Olympics.

It described this as "particularly intriguing and potentially pointed a finger at a state actor behind the intrusions, because there is likely no commercial benefit to be earned from such hacks."

Other targets included a private Western organization focused on promoting democracy, two U.S. national security think tanks, South Korean steel and construction firms, a Danish satellite communications company, a Singapore electronics company, a Taiwanese electronics firm, Vietnam's government-owned technology company and U.S. state and county governments, McAfee said.

It said a major U.S. news organization - identified as the Associated Press by The Washington Post - was "compromised at its New York headquarters and Hong Kong bureau for more than 21 months."

McAfee said the attacks involved sending infected emails to employees of the targeted companies. When opened, the emails implanted malware and established a backdoor communication channel to the command and control server.

Data theft appeared to be the chief objective of the attackers but Alperovitch warned the "potential exists for even more insidious activity."

"These intruders are in our systems, in the systems of all these companies, in all these government systems," he said. "The likelihood that they'll escalate the activity from just stealing data to modifying data or destroying data or destroying systems is also there."

China Officially Offers Pakistan J-10 Variant

ISLAMABAD - China for the first time officially offered Pakistan a variant of its most advanced frontline fighter, the Chengdu J-10 Vigorous Dragon/F-10 Vanguard.

Official Pakistani interest in the fighter dates back to February 2006, when then-Pakistani President Pervez Musharraf toured the J-10 production facilities on a trip to China. Pakistani government approval for the purchase of 36 FC-20s, a Pakistani-specific variant, was given in April 2006. Service entry was slated for the middle of the decade.

Citing defense sources, the offer was reported in the Urdu press here over the weekend. The offer was made during the recent visit to China by Lt. Gen. Waheed Arshad, the Pakistani Army chief of General Staff.

Precise details of the deal are not yet known. However, Usman Shabbir of the Pakistan Military Consortium think tank, said "the initial deal will be for at least two squadrons [at least 32 aircraft] and will be financed by China via a soft, long-term loan."

Analyst Kaiser Tufail said the J-10's operational autonomy would be far greater than that provided by the U.S.-built F-16C.

"It has to be remembered that India refused to consider the F-16C/D and F-18E/F, as they wanted a freer hand in operability aspects as well as technology transfer, which the U.S. was unwilling to provide," Tufail said.

With the J-10, Pakistan would "be able to operate it in an environment not constrained by security restrictions," and could base the aircraft wherever desired, Tufail said. He also said the lack of technology-transfer restrictions from the original equipment manufacturer is a factor.

"The J-10 will provide F-16-class capabilities for Pakistan but without the cost and political encumbrances of U.S.-sourced aircraft," Carlo Kopp of the Air Power Australia think tank said.

"What a J-10 would provide is quantity over any U.S.- or EU-sourced product," Kopp said, though he is still uncertain whether China will supply "pre-loved J-10A…or new-build J-10A or J-10B airframes."

Shabbir said the broader Sino-Pakistani combat aircraft relationship has eroded Western influence over Pakistan, though he remains concerned about the implications Pakistan's fragile economy has for its defense capabilities.

"The availability of J-10 and JF-17 from the Chinese means that Pakistan is now not that reliant on the U.S. and Europe for its aircraft requirements, and this of course will erode U.S influence over Pakistan in the long term," he said.

The Pakistani Air Force is the largest operator of U.S supplied weapons in South Asia and therefore most vulnerable to sanctions

Carter Nominated as Next U.S. Deputy SecDef

Pentagon acquisition chief Ashton Carter has been nominated by the president to become the next deputy defense secretary, replacing William Lynn, according to the White House.

Ashton Carter currently serves as the undersecretary of defense for acquisition, technology and logistics. (Rob Curtis / Staff)

Lynn is expected to step down as the Pentagon's No. 2 civilian this fall after more than two and a half years in the post.
Carter currently serves as the undersecretary of defense for acquisition, technology and logistics.
Before taking his Pentagon job in 2009, Carter was chair of the International and Global Affairs faculty at Harvard's Kennedy School of Government. From 2006 to 2008, he served as a member of Secretary of State Condoleezza Rice's International Security Advisory Board, according to the White House announcement.
During the Clinton administration from 1993 to 1996, Carter served as assistant secretary of defense for international security policy.
"During that time, he directed military planning during the 1994 crisis over North Korea's nuclear weapons program and was instrumental in removing all nuclear weapons from the territories of Ukraine, Kazakhstan and Belarus," the White House announcement said.
Carter holds a bachelor's degree from Yale University and a doctorate from Oxford University, where he was a Rhodes Scholar.
Lynn told Defense Secretary Leon Panetta on July 1 of his plans to resign, saying the new secretary would be best served by a deputy who could stay through President Barack Obama's first term. He said he would not be able to make that kind of commitment because he'd like to spend more time with his children.
Obama has yet to announce who will replace Carter as Pentagon acquisition chief, but Navy acquisition chief Sean Stackley is rumored to be a frontrunner for the job. Before taking the Navy job, Stackley served as a professional staff member on the Senate Armed Services Committee.
Carter's nomination now goes to the Senate for review.

NATO Asks More Troops for Kosovo

PRISTINA, Kosovo - NATO has asked for troop reinforcements for Kosovo, a spokesman said Aug. 2, while denying the demand was linked to the recent unrest in the volatile north.
"We can control the situation [in the north], we have enough troops. It is not because of our inability to control the situation. Our soldiers deployed on the ground will need some relief ... and we need [new troops] to back up the soldiers," as reserves, Kosovo Force (KFOR) spokesman Hans Dieter Wichter told Agence France-Presse.

NATO's KFOR mission currently has more than 5,900 soldiers on the ground and Wichter said they asked for a reinforcement of a battalion, usually around 500 troops.
A NATO official in Brussels confirmed to AFP that it had issued "the activation order for the KFOR operational reserve" of a battalion-size unit of several hundred soldiers.
"The deployment will take place over the course of the coming days," the official said. The source would not say where the additional troops were coming from.
Unrest flared in Kosovo last week when the ethnic Albanian Kosovo government ordered police to seize control of two border crossings in northern Kosovo.
Kosovo officials said this was needed to enforce a ban on imports from Serbia that was not being respected by ethnic Serb members of Kosovo's border police on the border with Serbia. In the resulting clashes one ethnic Albanian police officer was killed.
NATO troops stepped in when a border post in Kosovo was set on fire and bulldozed, apparently by ethnic Serbs.
Angry Kosovo Serbs have been blocking the roads leading to the crossing for several days and vowed to remain at the barricades until a solution was found.
Kosovo banned imports from Serbia in response to the same move by Belgrade in 2008, the date the ethnic Albanian majority unilaterally proclaimed its independence from Serbia.
European Union U envoy Robert Cooper met with Kosovo Prime Minister Hashim Thaci in Pristina on Aug. 2, diplomatic sources told AFP. Cooper was sent from Brussels to mediate between the Kosovo and Serbian authorities following the recent unrest.
On Aug. 1, Cooper met Serbia's top negotiator Borko Stefanovic and minister for Kosovo Goran Bogdanovic.
Stefanovic said the Aug. 1 with Cooper were "difficult and complicated" adding that the Serbian side "expressed the legitimate demands of [Serb] citizens to restore things back to the situation before the crisis," Beta news agency reported.
"We want to enable free movement of people and get back to dialogue ... but the crisis has to be solved in the way we demanded," Beta quoted Stefanovic as saying while addressing Serbs on a barricade in northern Kosovo.
The disputed border crossings are seen as vital by many Kosovo Serbs as they provide a link with Serbia on which northern Kosovo almost exclusively relies for supplies of food and medicine. Over the weekend the first reports emerged of food shortages in some northern Kosovo towns.

Japan Warns of China's Growing Naval Muscle

TOKYO - Japan voiced concern Tuesday over China's growing assertiveness and widening naval reach in nearby waters and the Pacific and over what it called the "opaqueness" of Beijing's military budget.
In its annual defense report, Tokyo also pointed to threats from North Korea's series of nuclear tests and development of a new midrange ballistic missile, and at a lingering island dispute with Russia.

China has been embroiled in separate spats over islands - with Japan as well as with several Southeast Asian nations including Vietnam and the Philippines - which have flared up again over the past year.
The report, approved by Prime Minister Naoto Kan's cabinet, used a Japanese word that can be translated as "overbearing" or "assertive" for China's stance in the disputes with its neighbors, including Japan.
The report, released by the defense ministry, said that in this context, China's "future direction can be a source of concern".
Defense Minister Toshimi Kitazawa later told reporters that the intended English translation was "assertive", Jiji Press reported.
"We used the expression, thinking the entire international community probably perceives it that way," he said. "This is one way of expressing our hope that China will address these issues through friendly relations."
The paper also said China's defense spending was not transparent, saying that the defense budget publicly announced by China "is widely seen as only part of what Beijing actually spends for military purposes."
"Opaqueness in its defense policies and military movements are concerns for the region, including Japan, and for the international community, and we need to carefully analyze them," it said.
The paper said China is expected to expand its routine activities in the South China Sea, East China Sea and the Pacific Ocean.
"Considering the recent modernization of China's maritime and air forces, the areas affected by the capabilities will likely expand beyond its nearby waters," the defense paper said.
Japan's defense outlook has moved away from a perceived Cold War threat of a Soviet invasion, while Japan has boosted ground, air and naval forces on the far-southern Nansei islands near disputed islands in the East China Sea.
The paper for the first time also mentioned "risks to the stable use of the 'global commons' such as maritime, cyber and outer space as an emerging security issue in recent years."
The report also labeled North Korea's atomic bomb tests "a significant threat to Japan's security when the North is boosting capabilities of ballistic missiles that could carry weapons of mass destruction".
Japan also reiterated its claim of sovereignty over various islands that are in dispute with its neighbors China, Russia and South Korea.
A row over islands called Dokdo by Seoul and Takeshima by Tokyo flared again this week when three Japanese conservative opposition lawmakers were denied entry to South Korea as they planned to visit a nearby island.
South Korea's defense ministry launched a protest over the claim in the defense paper and urged Japan "to realize they can never expect progress in bilateral military relations without giving up a claim to Dokdo."