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Israeli spy station in Turkey aimed at Iran; the Gaza aid flotilla; and China benefits from Iran sanctions

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Following the operation in which nine civilians on an aid flotilla were killed by Israeli commandos, relations between Israel and Turkey have continued to take a dive. Most interestingly, The Times Online has this to say (found via Friday Lunch Club):

"Israel has rejected much of the criticism of Operation Sky Winds, but the Israeli defence establishment, long friendly with the Turkish military, is extremely worried. Turkey’s government, itself religiously based, has aligned itself with public anger. Reports to the Israeli defence ministry indicated that it might close down an Israeli intelligence station based on Turkish soil, not far from the Iranian border.

"'If that happens,' said a well-informed Israeli source, 'Israel will lose its ears and nose, which watch and sniff the Iranians’ back garden.'"

The same article also explains that the military team that confronted the aid flotilla was unused to such policing activities against civilians, and that it is more at ease with covert military missions. The example given by the Times Online was of an assassination it says was successfully conducted against a Syrian general.

Ehud Barak is supposed to have personally managed the flotilla operation from Israeli Defence Forces (IDF) headquarters in Tel Aviv, and was watching events live through military feeds. Currently the Israeli defence minister, Barak was once the commander of an elite force that had the current prime minister, Binyamin (Bibi) Netanyahu under him.

"The relationship between Bibi and Ehud goes back more than 40 years. Barak was a commander of Israel’s equivalent of the SAS and Bibi was one of his young officers. In 1972 they were among the commandos who stormed a hijacked Sabena jet at Tel Aviv airport. Bibi was injured by a bullet in his hand. Barak went untouched. Ever since, Netanyahu has regarded him as his mentor.

"After they went into politics, Netanyahu became leader of Likud and Barak leader of the Labour party." (From the Times Online article linked above)

Iran has accused Israel of increased covert activity against it. The Iranian Press TV in January 2010 reported that "Sources in Turkey's ruling party told Russia's Mignews that Israeli spy agents ran an advanced electronic monitoring station from the Ankara military headquarters to keep tabs on communication networks in Iran and Syria."

I am not certain how this allegation might be related to the Times Online revelation of an Israeli listening post in Turkey aimed at Iran.

Iran feels that the espionage is intended for use in sabotage and assassinations to slow or stop its uranium enrichment activity.

Flynt Leverett and Hillary Mann Leverett have some great analysis on China's approach to sanctions on Iran. They indicate that China has refused to fully oppose U.S.-led sanctions in order to keep the US engaged within the UN Security Council and not have it be freed from the international body to go it alone. By refusing to use its veto in the Security Council, China has avoided a confrontational approach with the U.S. and simultaneously been successful in negotiating for significant changes to each round of sanctions.

The sanctions have so far excluded any measures that would harm China's trade and energy investments relationship with Iran.

From Race for Iran:

"China succeeded in extracting extensive concessions from the Obama Administration with respect to the content of the specific measures contained in the draft sanctions resolution.  Since 2006, Beijing’s approach to the Iranian nuclear issue has been to give Washington just enough on sanctions in the Security Council to keep the United States in the Council with the issue, while watering down the actual sanctions approved so that they would not impede the development of Sino-Iranian relations.  Fundamentally, China is continuing that approach now.

"[...]Not only does China buy a significant portion of its oil imports from Iran; as we have written previously, Chinese energy companies have, since the end of 2007, concluded a growing number of investment contracts for Iranian projects.  Beijing was determined that a new sanctions resolution that would not impede the implementation of those contracts or the conclusion of new contracts by Chinese companies, and the Obama Administration predictably caved on the issue.  Moreover, Beijing appears to have extracted a commitment from the Obama Administration that U.S. secondary sanctions will not be imposed on Chinese energy companies or other entities doing business in Iran. Chinese diplomats also negotiated the Obama Administration down with regard to the specific Iranian individuals and entities to be identified in the “annexes” accompanying a new sanctions resolution, to ensure that no individual or entity is included that Chinese companies might need to deal with in pursuing their activities in the Islamic Republic."

What I think is interesting here is that the sanctions seem to actually give China an edge over the U.S. The U.S. continues to make it difficult for itself and its close allies (such as Europe) to maintain healthy diplomatic and trade ties with Iran. This has left a vacuum that China is handily filling in. China is becoming Iran's leading trade partner, beating out the likes of Germany. China is also investing heavily in Iran's infrastructure, including its energy infrastructure, which will help it secure a greater share of the valuable and scarce energy resources.

"In late May, China offered a one billion Euro ($1.2 billion) loan to finance infrastructure projects in Tehran.  Last week, it was announced that China is negotiating to extend another $1.2 billion in credit to Iran for the construction of six liquefied natural gas (LNG) tankers," according to the article posted on the Race for Iran.

China, the world’s second largest oil consumer, sources over 70% of its imported oil from the Middle East, according to the People’s Daily. According to CNN, 15% of China's oil imports come from Iran.

With Iran and Pakistan moving ahead with a deal to run a US$7 billion natural gas pipeline into Pakistan's Balochistan and Sindh provinces, there is talk of potential interest to set up a splinter line north and east from Pakistan to China to deliver gas to China. China, meanwhile, has heavily invested in and essentially led the construction of an energy processing and transit site in Gwadar, a significant Pakistani port city near the Persian Gulf.

Pakistan's The News reports on the Iran-Pakistan gas pipeline:

"Under a deal signed in March, Pakistan will be allowed to charge a transit-fee if the proposed pipeline is extended to India. Iran, which makes $18 billion annually from the sale of gas from South Pars, sees its income to surge to at least $96 billion per annum if trans-country pipeline extends to India."

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