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To: j g cordes who wrote (30121)1/27/1999 11:34:00 AM
From: Les H  Respond to of 67261
 
Hunan Begins to Boil
January 19, 1999
stratfor.com

SUMMARY

China's rising unemployment, officially forecast by Beijing to top 16 million
this year, produced thousands of protests across China in 1998. One
region in particular that appears to be emerging as an epicenter for unrest
is Hunan province, hit not only by layoffs but also by flooding and official
corruption. Hunan has seen a series of demonstrations in recent weeks,
including a violent one on January 8 that reportedly involved some 5,000
farmers. Hunan is also home to political and labor activists, several of
whom have been targeted in Beijing's recent crackdown on dissent. On
January 17, a bomb exploded on a bus in the Hunan capital, Changsha,
injuring 37. With social unrest now turning to violence, a cadre of activists,
and only harder times in sight, Hunan could soon pose a serious challenge
to stability in China as a whole. We expect Beijing knows this and will
respond accordingly.

FORECAST

According to reports from China's Xinhua news agency and multiple
sources outside China, a bomb exploded on a bus on the evening of
January 17 in Changsha, capital of the central Chinese province of Hunan.
The blast reportedly injured at least 37 of the 60 people on board, four of
them seriously, although Chinese officials deny a report in the Hong Kong
newspaper Ming Pao that 11 people were killed in the blast. There is no
report of whether any passersby were injured by the explosion, which
occurred at 7:40pm on Wuyi Avenue, a busy shopping street. According
to an eyewitness cited by Xinhua, a man of about 30 put a lit cigarette in a
large sack he had brought on the bus immediately before exiting the bus.
Moments later the sack exploded. Said the witness, "The young man
looked like a farmer who was in the city looking for temporary work. He
was dressed in tatty clothing and was generally scruffy." Local police
investigating the bombing reportedly did not confirm the witness's account,
but according to the BBC, investigators did find traces of sulfur and
nitrogen on the bus and confirm that the explosion was caused by a bomb.
The Hong Kong based Information Centre of Human Rights and
Democratic Movement in China calls Changsha "a disaster area for
unemployment," and has reported sabotage attempts in the area last July
and September.

On January 8, some 5,000 farmers protesting government corruption and
excessive taxes clashed with police in Daolin township, about 25 miles
from Changsha. One farmer was reportedly killed when hit by a tear gas
canister, and some 100 more were injured in the more than five hour
clash. According to a local Chinese radio station employee interviewed by
the New York Times, the demonstrations were sparked when local police
attempted on January 8 to disband and arrest the officers of the Society
for Reducing Taxes and Saving the Nation, a group founded last year by
local farmers. The radio station employee claimed that 10,000 farmers
were present at the peak of the demonstration, while the Information
Centre of Human Rights and Democratic Movement in China put the
number at 3,000 and Chinese officials admit that 4,000 to 5,000 were
involved. A second demonstration reportedly followed on January 9 but
was quickly put down by 500 troops, while three other smaller protests
related to the January 8 incident have reportedly occurred since then.

On January 18, several hundred laid off workers, known as "xiagang,"
from the state-owned Changde textiles factory, roughly 100 miles
northwest of Changsha, blocked a highway bridge for over an hour to
protest not receiving wages for over three months. According to the
Information Centre of Human Rights and Democratic Movement in China,
the demonstration caused a two mile long traffic jam. The Changde
factory reportedly recently laid off some 3,000 of its 10,000 workers.
Hundreds of laid off workers reportedly held similar demonstrations in
Changsha on three occasions in November.

China has seen widespread social unrest and demonstrations in the past
year, as the Asian economic collapse and China's efforts to force
inefficiencies out of its economy have left millions unemployed. China's
xaigang pose an increasing threat to China's stability as their
demonstrations are growing larger, more frequent, and more violent.
Demonstrations have been widespread and frequent, and bombings have
occurred elsewhere in China as well. An explosion at a bus stop last week
in Zhuhai, Guangdong province, injured four. Two people died and six
were injured in an explosion late Sunday afternoon in an apartment on a
busy street in Guangzhou. Traces of explosives were reportedly found at
the scene.

While social unrest is present throughout China, Hunan is particularly
volatile. The province is faced with extensive corruption and high
unemployment, and has a tradition of anti-government activism. Chinese
media has been filled with reports of Hunan officials caught up in Beijing's
anti-corruption campaign, charged with and convicted of everything from
massive embezzlement to vote fraud. Hunan has not only had to deal with
layoffs from state-run factories, but is also coping with more than 300,000
refugees from flood ravaged areas.

Hunan is also home to a number of Chinese opposition activists, many of
them veterans of the 1989 pro-democracy movement. The Changsha
Workers Autonomous Federation was created in 1989, and was
reportedly prominent in the pro-democracy struggle. Two committees of
the China Democracy Party, recently the target of a government
crackdown, were established last year in Changsha. Labor activist Zhang
Shanguang, was sentenced last month in Changsha to 10 years in prison
for "endangering state security." Zhang had served seven years in prison
for ‘spreading counterrevolutionary propaganda" during the 1989
demonstrations. After his release, Zhang worked in, and was laid off from,
a state-run factory. He proceeded to found the Association to Protect the
Rights and Interests of Laid-Off Workers. He was arrested after giving an
interview to Radio Free Asia regarding rural unrest in Hunan. Xu
Wanping, another Changsha activist, in December was reportedly the first
to be sentenced to prison for his role in attempting to establish the China
Democracy Party. Xu was also active in the 1989 pro-democracy
movement, for which he spent eight years in prison.

According to the official China Daily Business Weekly, China's
unemployment situation is only going to get worse in 1999. On January
17, the journal cited Ministry of Labor and Social Security expert Mo
Rong as forecasting some 30 million job seekers in 1999, with only 14
million new positions created in China's slowing economy. "This leaves
almost 16 million people who will be unable to find a position through the
labor market," said Mo.

Beijing is approaching a major crisis, with few options to escape or
weather it. Like most of the rest of Asia, China is faced with the need to
dramatically restructure its economy, knowing that such a move will foster
massive social upheaval. Elsewhere in Asia, Japan has given social stability
top priority, and so has been unable to pull out of its economic quagmire.
Malaysia has sought to detach itself in part from the global economy, in
order to avoid both social unrest and difficult economic decisions. China
has chosen a third path, taking the necessary steps to reform its economy
while dealing with a firm hand, or fist, with the ensuing social disruption.
Opposition sources claim that Beijing has authorized security forces to fire
on demonstrators without prior approval under certain conditions. But as
Beijing pushes ahead with layoffs at state-run firms, the increasing number
of unemployed pose an increasing threat to China's stability. This problem
could be amplified if Chinese growth dips below five percent, a point
toward which some analysts argue the Chinese economy is already
creeping. China will either have to curtail economic restructuring,
potentially sinking into the same stagnation seen in Japan, or it will have to
take more draconian steps to control unrest. That Hunan province should
lead the pack in social dislocation and disaffection is a historical irony of
massive proportions: After all it was in Hunan that Mao Zedong first
launched a peasant-worker revolt, and the same province may end up
being ground zero for the next phase of repressive Chinese policies.



To: j g cordes who wrote (30121)1/27/1999 11:38:00 AM
From: Les H  Respond to of 67261
 
Two African Crises Merge... With U.S. Help
stratfor.com

Two major, long-running African crises are merging, feeding on each other
and threatening to envelop the continent in one great tangled web of
conflict. The war in the Democratic Republic of the Congo (DRC) long
ago went multinational, with Angola, Namibia, and Zimbabwe intervening
on behalf of the government of Laurent Kabila, and Rwanda and Uganda
supporting the ethnic Tutsi rebels. On Tuesday, Uganda's "New Vision"
newspaper reported that Sudan had sent 2,000 troops, including 700
Sudanese- sponsored Ugandan rebels, to support the Kabila regime in the
DRC. The newspaper cited Tutsi rebels in the DRC as reporting that
Sudanese troops were airlifted last week from Khartoum and Juba to front
line positions in Kindu, Isiro, and Lubumbashi. Agence France Presse
slightly contradicted the New Vision report, however, citing an unnamed
security source as saying the majority of the Sudanese force in the DRC
were, in fact, Rwandan Interahamwe, who have been training in Sudan for
nearly a year.

Sudan's involvement in the DRC complicates, and is in large part driven
by, its existing struggle against Ugandan-backed rebels. Uganda supports
the Sudan People's Liberation Army (SPLA), which is battling the regime
in Khartoum, and Sudan, in turn, supports several rebel groups battling
Kampala. Sudan certainly wants to aid a potential ally, Kabila, to
Uganda's rear. The proxy war between Sudan and Uganda escalated last
week, with a series of clashes in Sudan's Eastern Equatoria province.
Sudanese army spokesman, Lieutenant General Abd al-Rahman Sirr
al-Khatim, claimed on September 21 that Sudanese soldiers had fought
Ugandan regular army troops in Eastern Equatoria, and that the Ugandans
had made no attempt to disguise their involvement. According to Sirr
al-Khatim, Sudanese forces destroyed 11 Ugandan tanks, three armored
vehicles, and several armored personnel carriers. He claimed that the
Ugandan troops came from the towns of Kitgum and Gulu, and were
recognizable by their arms, equipment, and fatigues.

Ugandan Defense Forces spokesman, Shaban Bantariza, denied Ugandan
involvement, asking Sudan to prove its claims, and asserting that the forces
in the clashes were those of the SPLA. Sirr al-Khatim's claims went
further, however, as he stated that the Ugandan equipment matched that of
their allies, "such as the Eritrean People's Front (EPF) regime." Sirr
al-Khatim said, "All evidence in the field indicates that the general
mobilization in Uganda against Sudan is extensive and continuous."
Furthermore, the general said, "These events in Eastern Equatoria have
coincided with the increasing movements of EPF forces along the border,
the evacuation of residents from the border areas on their side, and the
increasing concentration of their forces on the border. All this is a
reflection of the hostile intentions and the well-coordinated efforts between
Uganda and the EPF to launch heinous aggressive attacks."

Regardless of Khartoum's claims, before Eritrea can mobilize against
Sudan, it must settle its dispute with Ethiopia. For five months, Ethiopia
and Eritrea have been in a state of war over a section of their common
border, but there have recently been signs of a stepped up effort to settle
the dispute. Former Sudanese Premier and member of the rebel National
Democratic Alliance (NDA), Sadek al-Mahdi, was in Addis Ababa on
September 22 on a "good offices mission" to help solve the border
conflict. The NDA is the umbrella organization that unites Eritrean-backed
Sudanese rebel forces in the north with the Ugandan-backed rebels in the
south. According to a source close to Mahdi's delegation, he met with
"Ethiopia's largest bodies," and three days previously had met with
Eritrean authorities.

Also suddenly stepping up its efforts to settle the Ethiopian- Eritrean
border dispute is the United States, which also backs the Sudanese rebels.
On September 18, the U.S. and Italy called on the two countries to
cooperate with the mediation efforts of the Organization of African Unity.
On September 22, the Ethiopian government newspaper "Addis Zemen"
reported that the U.S. and Italy had donated $10.23 million to help
Ethiopians displaced by the border dispute.

There are other indications of U.S. intentions toward both Sudan and the
DRC, raising questions of a possible U.S. role in orchestrating the linking
of these two crises. Despite the fact that Assistant Secretary of State for
Africa, Susan Rice, assured Congress that the U.S. considers the conflict
in the DRC "among the most dangerous in the world" and is not assisting
any of the DRC's neighbors to intervene, she said on the satellite
broadcast "African Journal" program that "The DRC should not be used
as a haven for UNITA, Interahamwe and others to destabilize Uganda,
Rwanda, and Angola." On the same program, former Assistant Secretary
of State for Africa, Herman Cohen, who served in the Reagan and Bush
administrations, said "Certainly, Uganda has very legitimate reasons for
intervening in the Congo crisis. Congo is a source of regional instability.
Even Rwanda and Angola have legitimate reasons to send troops there."

On September 19, the Secretary General of the Political Department of
Sudan's National Congress, Muhammad al-Hasan al- Amin, announced
that Khartoum had received a document from the U.S., charging Sudan
with continuing to support the terrorist groups of Osama Bin Laden, who
were planning additional attacks on U.S. interests. According to Amin, the
document said that the U.S. would hold Sudan responsible for any further
attacks against U.S. citizens and interests, anywhere in the world. On
September 20, Sudanese President Omar al-Bashir announced that the
U.S. government had sent Khartoum an unsigned document, threatening to
attack other targets in Sudan. Bashir said Sudan "would welcome this
second strike, and it would not file a complaint with the Security Council,
because it would retaliate." He said Sudan's reaction "would be painful."

It is questionable whether even the Clinton administration would resort to
the crude tactic of sending unsigned, unheaded threats to Khartoum. But
increased U.S. involvement in Ethiopia and support for Uganda,
apparently as part of a plan to facilitate a new Sudanese rebel offensive, is
evident. These new U.S. efforts against Sudan, following the
now-questioned attack on the Shifa chemical plant, demonstrate a
renewed commitment by Washington to topple the regime in Khartoum.
The Shifa attack was but a first step. However, contributing to the
potential formation of a battlefield stretching from Luanda to Asmara is a
dangerous game. We hope it's worth it.

>>>Looks like the attacks on Sudan and Iraq were attempts to topple
>>>foreign regimes.