U.S. sees Russia, China, OPEC financial threat
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The United States should be worried that Russia, China and OPEC oil-producing countries could use their growing financial clout to advance political goals, the top U.S. spy chief told Congress on Tuesday.
U.S. National Director of Intelligence Michael McConnell voiced the concern to Congress in an annual assessment of potential threats, in which economic matters joined terrorism, nuclear proliferation and computer-network vulnerabilities as top security issues.
McConnell told the Senate Intelligence Committee in prepared testimony that the global threat of terrorism remained, but that al Qaeda had suffered setbacks and its international reputation was diminishing.
Among other top worries, Iran still had the potential to develop nuclear weapons despite stopping work on nuclear warhead design, he said.
But Pakistan's nuclear arsenal remain under military control, even amid the political turmoil there.
In Iraq, violence had declined and al Qaeda in Iraq had been weakened, but the capabilities of Iraq's security forces remained limited while sectarian distrust was still high, McConnell said.
Discussing U.S. financial vulnerabilities, McConnell voiced "concerns about the financial capabilities of Russia, China and OPEC countries and the potential use of their market access to exert financial leverage to political ends."
Russia was positioning itself to control an energy supply and transportation network from Europe to East Asia. China's global engagement was driven by a need to access markets and resources, McConnell said.
A weak U.S. dollar had prompted some oil suppliers to ask to be paid in other currencies, or to delink their currencies from the dollar.
"Continued concerns about dollar depreciation could tempt other producers to follow suit," McConnell said.
Discussing Cuba, McConnell said provisional President Raul Castro was seeking to bring about economic changes and aid from Venezuela was helping the country ignore outside pressure for reform. He said that in the event of Fidel Castro's death "the political situation is likely to remain stable at least in the initial months."
