International and Bilateral Issues:

Growing in confidence after downing an American drone and aiming to deter the possibility of an attack by foreign powers, Iran has announced that it is on the threshold of major technological
breakthroughs in the military field
- Iran is in a unique position in all areas, including manufacture of unmanned reconnaissance aircraft, as well as defence and assault airplanes.
- Iran has also made great progress in electronic warfare technology, aviation industries and missile technology.
Analysts point out that Iran began its 10-day naval manoeuvres, mainly to press home the point that if attacked by the Americans or the Israelis, Tehran had the capability to seal the Strait of Hormuz — the main artery through which vast amounts of oil and gas from the Persian Gulf countries are shipped.
- Any blockage of the strait of Hormuz can trigger a global energy shortage, and cause a meteoric rise in oil prices — a prospect that can severely undermine recovery of leading recession hit economies.
The downing of the drone, the tightening of U.S. sanctions on Iran and the withdrawal from Tehran of its diplomats by Britain, after its embassy was stormed by Iranian youths has heightened tensions between Iran and the West in recent weeks.

The US is using a “hedging strategy” to deal with the rise of China, and is strengthening alliances with old partners like Japan and shoring up ties with rising powers like India to create a regional network
“In the military area, the United States is trying to make its military deployments in the region more comprehensive, flexible and long-lasting, strengthening its military existences in the South East Asia and Australia and improving its alliances and partners’ military powers by carrying out trainings and drills
India and Japan have recently improved military ties and will be undertaking their first bilateral air exercise next year, besides a planned naval exercise.

India wants an “independent and credible mechanism…to investigate allegations of human rights violations” during the end stages of Eelam War IV.
However, a senior government official said there were many welcome features in the Indian stand, such as remaining engaged with Sri Lanka through the process and the fact that it welcomed the public release of the document.

North Korea on Monday added an important title to the fast-growing credentials of its untested new ruler, referring to the youngest son of late leader Kim Jong-Il as head of a key ruling party body.
Mr. Kim, in his late 20s, has already been touted as “great successor” and “supreme commander” of the military since his father died on December 17 of a heart attack at the age of 69.
Usually the head of the Central Committee — a top decision-making body — is also its general secretary

Despite the Japanese Parliament, Diet, clearing Japan's civil nuclear cooperation with four other countries allowing it to resume its supply of nuclear reactors, India remains uncertain about the resumption of its own negotiations for such cooperation with Tokyo.
Japanese PM Yoshihiko Noda's visit to India on Tuesday for the 6th annual India-Japan summit
India-Japan civil nuclear cooperation is important also for the US as it would lift nuclear and high-tech export controls and enable major US suppliers like GE and Westinghouse, who have either Japanese owners or partners, to carry out nuclear commerce with India.
In December, Diet approved bilateral agreements for civil nuclear cooperation with four countries - Russia, South Korea, China and Vietnam.
While this is being looked upon a positive sign, there are still doubts over whether this would translate into renewal of negotiations with India, a non-NPT signatory.