Daimler, Rolls-Royce Mulling Tognum Takeover

FRANKFURT - German automaker Daimler and Rolls-Royce are in "constructive discussions" concerning a takeover of Tognum, a German manufacturer of motors and turbines, Daimler and Rolls-Royce said March 7.

The two groups are interested in "acquiring the majority of Tognum in equal shares," a statement said, confirming a report by Manager Magazin.

The statement added that "no final decisions on increasing the equity interest have been made."
Tognum is based in Friedrichshafen, southern Germany.
Daimler, also the world's biggest heavy truck maker, already owns 28 percent of Tognum, a major supplier of Daimler's engines.
Tognum shares soared 21.27 percent to 22.44 euros in midday trading on the Frankfurt stock exchange while the MDax index on which they are listed was 0.84 percent higher overall.
Daimler shares showed a gain of 1.44 percent to 48.93 euros while the main market DAX index was 0.74 percent higher overall.
Tognum also builds motors for armored vehicles and boats and posted sales of 2.5 billion euros ($3.5 billion) in 2009, a level it expected to reach again in 2010.

U.S. Under Pressure to Arm Libya Rebels

WASHINGTON - The administration of President Barack Obama has come under mounting pressure to arm Libyan rebels facing an emboldened and regrouping military, amid charges Washington missed recent chances to oust the country's strongman.

Obama has insisted that all options, including military action, remain on the table with respect to Libya, where Moammar Gadhafi's forces have unleashed deadly airstrikes on rebels and civilians in efforts to crush an uprising in which thousands are feared dead.

But with the administration cautioning that a decision on a no-fly zone was still far off, opinion among U.S. lawmakers and former officials appeared to coalesce around the likelihood that supplying weapons to the outgunned rebels was a way forward.
"I assume that a lot of weapons are going to find their way there (to rebels in Libya) from one means or another over the course of the next weeks," Senate Foreign Relations Committee Chairman John Kerry, from Obama's Democratic Party, told CBS's "Face the Nation" March 6.
Ex-governor of New Mexico Bill Richardson, a former U.S. ambassador to the United Nations, also said it was time to "covertly arm the rebels" and enforce a no-fly zone over Libya.
And Stephen Hadley, national security adviser to Obama's predecessor George W. Bush, said Washington should look at the potential for funneling arms to Gadhafi's opponents.
"Obviously, if there is a way to get weapons into the hands of the rebels, if we can get anti-aircraft systems so that they can enforce a no-fly zone over their own territory, that would be helpful," Hadley told CNN.
Pentagon spokesman Col. David Lapan declined to confirm any potential plans to send weapons to opposition forces, simply telling AFP that "all options are being considered."
According to The New York Times, these options could include use of signal-jamming aircraft in international airspace to muddle Libyan government communications with military units.
Another tactic would be to air-drop weapons and supplies to Libyan rebels, the report said. Other options under consideration also included inserting small special operations teams to assist the rebels, as was done in Afghanistan to topple the Taliban, the paper noted.
Kerry said a no-fly zone should be set up in conjunction with allies, but warned that direct military action would be "trickier."
"The last thing we want to think about is any kind of military intervention, and I don't consider the fly zone stepping over that line," Kerry said.
U.S. Defense Secretary Robert Gates has warned that imposing a no-fly zone begins with direct military action, as it would require bombing raids to eradicate Libya's air defenses, thus potentially dragging the United States into a third major war front after Iraq and Afghanistan.
But both Kerry and Republican Sen. John McCain - two of the most renowned combat veterans in the U.S. Senate - downplayed the risk and complexity of such a move.
"That's actually not the only option for what one could do," said Kerry.
"One could crater the airports and the runways and leave them incapable of using them for a period of time."
There were other ways of displaying U.S. might to Tripoli, including the use of military transport planes to fly Egyptian refugees out of Tunisia, and the recent arrival in the Mediterranean of two U.S. warships with Marines on board.
"We have made the presence of American military felt for that purpose," Kerry said.
A former Tripoli regime member complained that Washington has missed a key opportunity to end Gadhafi's four-decade grip on power.
"We asked for help when he was on the ropes," said Libya's ex-minister of immigration Ali Errishi, who resigned shortly after the uprising began nearly three weeks ago, along with several key Gadhafi loyalists and military figures.
"They were dragging their feet, I don't know why."
Rebels have taken control of much of Libya's eastern half, but Gadhafi's well-armed forces have gone on the counter-attack against rag-tag groups of rebels who are often armed only with AK-47 assault rifles.
McCain, Obama's 2008 rival for the presidency, said a no-fly zone would "send a signal to Gadhafi" that Obama was serious in his call for the Libyan leader to step down.
"It would be encouraging to the resistance, who are certainly outgunned from the air," he told ABC's "This Week."
He backed off from direct military engagement but noted Washington could also provide technical assistance and intelligence capabilities.

Israel's National Security Council Head Steps Down

JERUSALEM - Israel's National Security Council chair Uzi Arad stepped down on March 6 after two years in the post, a statement from the prime minister's office said on March 7.

Arad, who was seen as an influential advisor to Prime Minister Benjamin Netanyahu, is stepping down before a replacement has been named.

Israeli media has reported that he could be replaced by Yaakov Amidror, a reserve major general who formerly headed the Israel Defence Forces' research and assessment division and is considered a military hawk.
Amidror opposed Israel's unilateral withdrawal from the Gaza Strip and has in recent years called for the reoccupation of entire areas of the coastal enclave.
Israel's National Security Council, created in 1999, includes 20 advisers from various backgrounds who are charged with drafting reports on potential government security policy but lack any decision-making power.
Arad, who announced he was stepping down in February, had been mentioned as a possible nominee to become Israel's ambassador to London, but has since said he plans to return to academia.

Taiwan to Cut 9,200 Troops as China Ties Warm

TAIPEI - Taiwan plans to slash the number of its troops by 9,200 this year amid warming ties with China, but the cut will be offset by more advanced weaponry, an official said March 7.

The reduction is part of a five-year plan aimed at trimming the size of Taiwan's armed forces by 60,000, or more than 20 percent from the present level of 275,000 troops.

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But the defense ministry said the island's defensive capabilities would not be undermined as it seeks more high-tech and powerful weapons.
"The era of maintaining a huge number of forces has gone. Defense capability is no longer determined by the number of troops," the ministry's acting spokesman Lo Shau-ho told AFP.
Taiwan's relatively large army is a legacy of decades of tensions with China, which still regards the island as part of its territory since the two sides split at the end of a civil war in 1949.
However, ties have improved dramatically since Taiwan President Ma Ying-jeou of the China-friendly Kuomintang party came to power in 2008 promising to boost cross-strait trade and tourism.
China's own military budget is set to rise nearly 13 percent to 601.1 billion yuan ($91.7 billion) this year, officials said March 4, while stressing that the mainland wants to modernize its armed forces for defensive duties.
But China's build-up is widely seen by analysts as geared in large part at reclaiming Taiwan. Taiwanese experts say China has more than 1,600 missiles aimed at the self-ruled island.
Despite the easing of tensions with Taiwan's giant neighbor, Ma says the island needs to maintain sufficient self-defense while pressing for dialogue with Beijing.
In January 2010, the U.S. government announced a weapons package for Taiwan that includes Patriot missiles, Black Hawk helicopters and equipment for Taiwan's F-16 fleet, but no submarines or new fighter aircraft.
Beijing reacted angrily to the arms deal, saying it would cut military and security contacts with the United States. But Ma's government continues to press Washington for an improved version of the F-16 fighter.

S. Korea Blames North for GPS, Phone Jamming

SEOUL - North Korea has been trying since March 4 to jam mobile phones in the Seoul area, as well as GPS tracking devices used by South Korean troops, government and intelligence authorities here said.

The jamming accusations take place as the U.S. and South Korea are conducting joint military exercises. Above, a U.S. soldier sits inside a nuclear, biological and chemical reconnaissance vehicle March 3 at Dongducheon, about 25 miles north of Seoul. (Jung Yeon-Je / Agence France-Presse)

The North is believed to be conducting trials of its truck-mounted GPS jamming equipment, allegedly modified from Russian ones, according to the sources, amid high tension over the ongoing joint command post/field training exercises by South Korean and U.S. forces.

The local Munwha Broadcasting Corporation, or MBC, reported the General Bureau of Surveillance of the North Korean People's Army, blamed for the deadly sinking of South Korea's Cheonan warship last year, was behind the latest attempt to block South Korean communication devices.
Col. Yoon Won-shik at the public affairs office of South Korea's Ministry of National Defense declined to comment on the report, and whether or not the GPS-jamming signals were sent by the North.
Yoon said, however, his ministry "has already recognized the North's intent to develop its technology used in blocking GPS signals in the South."
According to the Korea Communications Commission, GPS signals in Seoul and nearby cities, including the western port city of Incheon and Paju near the Military Demarcation Line (MDL) dividing both Koreas, started being disrupted in the afternoon of March 4.
As a result, some mobile phones both used by civilians and soldiers - as well as certain military equipment, such as distance measurement devices in artillery units - in the areas didn't work properly, the commission said.
Some citizens in the areas were still suffering network problems with their cellular phones March 6, it said.
Commission and other government officials believe the GPS-jamming signals were sent from the North's military bases in Haeju and Gaeseong, which are close to the heavily fortified border.
"The signals were sent intermittently every five to 10 minutes, so we suspect the North was testing its new GPS blockers imported from overseas given that the jamming signals were not sent continuously," an unidentified intelligence source said, according to Yonhap news agency.
Damage by the GPS disrupting maneuvers was relatively minor, the official said, adding: "The South Korean government has already been on track to establish an anti-jamming system to control and overcome such a low level of GPS blocking attempts."
In a parliamentary audit of the defense ministry in October 2010, former Defense Minister Kim Tae-young said that the North had already developed a GPS jammer by copying a Russian device.
The jammer is believed to be capable of disrupting all GPS signals in radius of 50 to 100 kilometers (31 to 62 miles), including state-of-the-art missiles and precision bombs.
When the Iraq War began in 2003, the Iraqi army is known to have caused a stir by using a similar GPS jamming system to disrupt the U.S. military's guided weapons systems.
The South Korean military and U.S. Forces Korea (USFK) has boosted their GPS-guided precision striking missiles in recent years.
Since last March, USFK has deployed five new A-10 ground attack jet aircraft that can carry the Joint Direct Attack Munition (JDAM). The South Korean Air Force has also equipped its fleet of KF-16 fighters with JDAMs.
The JDAM can be used in neutralizing North Korea's artillery pieces hidden in mountain caves and tunnels near the border.

Iranian Warships Headed Home Via Suez

TEHRAN - Two Iranian warships that entered the Mediterranean last month, sparking an outcry from Israel, have passed through the Suez Canal back into the Red Sea, naval commander Rear Adm. Habibollah Sayari said March 5.
"The flotilla ... has completed its mission successfully in the Mediterranean Sea and has returned to the Red Sea transiting through the Suez Canal," the official news agency IRNA quoted Sayari as saying.

It was the first time since the 1979 Islamic revolution that Iranian warships had entered the Mediterranean, and Israel described the move as a "political provocation."
The frigate Alvand and supply ship Kharg passed through the Suez Canal on Feb. 22 and docked two days later at the Syrian port of Latakia.
Sayari did not say when the warships began their return journey, but said it took them "10-12 hours to transit" the canal. He said the flotilla conveyed a message of "peace and friendship to friendly countries."
Israel, which considers Iran its biggest threat after repeated predictions by President Mahmoud Ahmadinejad of its demise, put its navy on alert during the flotilla's mission.
Analysts say the deployment was an attempt by Iran to project its clout in the region at a time when anti-government protests sweeping the Arab world from Casablanca to Cairo are shifting the regional balance of power.
The Suez Canal Authority said last month that ships of any nationality can pass through "as long as the country is not in a state of war with Egypt."

N. Korea Wants South to Return Captured Boaters

SEOUL - North Korea on March 5 made a fresh demand for the repatriation of all 31 citizens whose boat drifted into South Korean waters, warning inter-Korean relations would be otherwise seriously affected.
The latest message carried by Pyongyang's official Korean Central News Agency came a day after the North refused to accept 27 of the 31, insisting that Seoul also hand over four others who want to live in the South.

"The South Korean authorities are forcing the detained guiltless inhabitants to separate from their families by appeasement and pressure," it said in a notice sent to the South on March 5.
"If the South Korean authorities do not comply with [North Korea's] just demand, it will seriously affect the North-South relations and the South side will be held wholly accountable for it," it said.
The North Koreans were on a fishing boat which drifted across the Yellow Sea border in thick fog on Feb. 5.
After almost a month the South said it would hand over 27 but announced that two men and two women would be allowed to stay as they had requested.
In a message late March 4, the North demanded the unconditional repatriation of all 31, according to Seoul's unification ministry, whose officials had been waiting in vain at the border village of Panmunjom to hand over the 27.
A ministry spokesman has said the South would try to contact North Korea again early next week to send the 27 home across the border.
The communist state late March 3 accused the South of "despicable unethical acts" and said the group on the boat had been held hostage in a bid to fuel cross-border confrontation.
Seoul's Unification Minister Hyun In-Taek told parliament the four had been allowed to stay in the South in respect of their wishes.
The four include the 38-year-old boat captain, who apparently feared punishment if sent back and decided to stay when he saw how different life in the South is, the newspaper Chosun Ilbo reported.
Relations have been icy since the South accused the North of torpedoing the corvette Cheonan in March 2010 near the disputed Yellow Sea border, killing 46 lives. Pyongyang denies the charge.
In November the North shelled a South Korean island near the border, killing two South Korean Marines and two civilians.