FRIday, july 2, 2010 ashar 18, 1417, RAJAB 19, 1431 Hijri

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Leading News

One killed, 2 hurt in police firing in Munshiganj
UNB, Munshiganj

A man was killed and two others received bullet wounds as police opened fire on a group of demonstrators on the Dhaka-Maowa highway at Kuchiamora in Sirajadkhan Upazila on Thursday.
The deceased was identified as Moslem, 32, son of M Ehsan of Keyain Maddachar Village. Munshiganj Assistant Superintendent of Police Sayduzzaman Farooque confirmed the incident.
The incident took place when the demonstrators blocked the highway demanding a speed breaker as a schoolboy was killed in a road accident at the place on Wednesday evening.
Police opened fire on the students and local people when they attacked the law enforcers present on the scene as the speed breaker has not been put till 12:00 noon, leaving Moslem dead on the spot. The demonstrator pelted brickbats that injured five police officers, including ASP Sayduzzaman Farooque, OC Mijanur Rahman and second officer Mushfiqur Rahman. Police also threw 20 round rubber bullets, 20 bullets and 12 teargas canisters during the clash.
Earlier on Wednesday, the students of Adarsha High School along with local people blocked the highway for two hours since 6:15pm after Mehedi Hasan, a student of class-VII of the school, was killed, witnesses said. Later, they put-off the blockade after getting assurance of putting a speed breaker at Kuchiamora from the local administration.


 BNP discusses party strategy
Khaleda demands release of Nizami, Mujaheed, Sayedee


UNB, Dhaka

BNP national standing committee, the party's highest policy making body, sat for urgent meeting on Thursday night to discuss its strategy over the arrest of top leaders Jamaat-e-Islam, a major partner of BNP-led 4-party alliance.
The meeting with BNP chairperson Khaleda Zia in the chair at her Gulshan office commenced at 8:15 pm.
On Tuesday Jamaat Ameer Matiur Rahman Nizami, secretary general Ali Ahsan Muhammad Mujaheed and Nayeb-e-Ameer Delwar Hossain Sayedee were arrested.
BNP standing committee members including Khandaker Delwar Hossain, Dr RA Gani, Dr Khandaker Mosharraf Hossain, Barrister Moudud Ahmed, M Shamsul Islam and Lt Gen (retd) Mahbubur Rahman attended the meeting that was continued till filing this report at 8:50 pm. On Wednesday night a 2-member delegation of Jamaat M Qmaruzzman met with Khaleda Zia to discuss about the latest situation following arrest of their top echelons.
Meanwhile, Khaleda Zia Thursday night denounced the arrest of three top Jamaat-e-Islam leaders and demanded their immediate release.
In a statement Khaleda termed 'rude' example of political repression in autocratic way the arrest of the top three leaders of Jamaat in a 'funny' case and then taken them on remand for 16 days in a number of 'false' cases against them.
She called for withdrawal of all restrictions on peaceful activities by all the legal political parties as per the constitution and law.
Khaleda said when Jamaat-e-Islam comes forward in support of the political programs of BNP, Awami League resorts to repression on Jamaat. She said no conscience people can accept such repression and political vendetta. Describing the recent arrests as political 'repression and 'misrule', Khaleda urged the people to carryout movement peacefully against the 'fascist' government saying the democracy is at stake and the country is under the clutch of the fascist.
The BNP chairperson demanded arrest and exemplary punishment of those involved in the attack of BNP leader Mirza Abbas' residence and on Shahiduddin Chowdhury Annie MP through fair investigation.
She wanted to know from the government about the whereabouts of DCC ward councilor and BNP central executive committee member Chowdhury Alam and demanded his immediate release.


 PM for taking up project for dev of pearl farming
BSS, Dhaka

Prime Minister Sheikh Hasina Thursday asked the authorities concerned to take up a project-based programme soon for development of pearl cultivation in the country.
She gave the directives during a power-point presentation on 'Pearl Farming in Bangladesh: Present State, Problems and Tasks' by the Bangladesh Fisheries Research Institute under the Fisheries and Livestock Ministry at the Prime Minister's Office (PMO).
Among others, Fisheries and Livestock Minister Abdul Latif Biswas was present at the power-point presentation meeting. After the meeting, Press Secretary to the Prime Minister Abul Kalam Azad briefed newsmen.
The Prime Minister put utmost importance on pearl farming in the country to create income generation, especially for the women. She said the country could earn a considerable amount of foreign exchange by exporting pearls to the global market fulfilling its demands.
Sheikh Hasina said her previous government in 1998 took steps for flourishing pearl farming in the country, but the BNP- Jamaat alliance government did not support those properly. After taking office this time, Hasina said, the government again took a decision to expand pearl farming in the country.
She asked the authorities concerned to take assistance from the countries adept in pearl farming for proper establishment of pearl cultivation in the country. She mentioned that pearl farming could be carried out with a small capital and this could help the country make a good progress in the economic arena.
Sheikh Hasina mentioned that as the country has vast wetlands, this farming has a huge potentiality that will help propel the country towards prosperity.
Bangladesh Fisheries Research Institute informed the Prime Minister that four kinds of pearl farming is going on in the country.
These are Lamellidess marginails, Lamellidens corrianns, Lamellidens Phenchooganjensis and Lamelliem jenkinsianus. Of the varieties, Lamellidess marginails and Lamellidens corrianns have the higher rate of productivity.


    Mujahid, Sayedee taken to DB office for interrogation
UNB, Dhaka

Paltan Thana police on Thursday took Jamaat-e-Islami leaders Ali Ahsan Mohammad Mujahid and Delwar Hossain Sayedee into their custody from Dhaka Central jail for interrogation in connection with a case.
Jamaat ameer Matiur Rahman Nizami, secretary general Mujahid, nayeb-e-ameer Sayedee were sent to jail on Wednesday after a Dhaka court granted 16 day's remand for each in five cases, including one in Paltan thana.
Earlier, on February 17, police filed a case with Paltan thana against some Jamaat leaders and activists on charge of rioting and assault on police. Sub-Inspector Zillur Rahman is now investigating the case.
Official sources said the two Jamaat leaders were taken to the office of Detective Branch of Dhaka Metropolitan Police in city's Minto Road from Dhaka Central Jail Thursday afternoon due to accommodation crisis at Paltan thana.
Investigation Officer SI Zillur will interrogate the two Jammat leaders at the DB office, they said, adding that Jamaat ameer Nizami will be interrogated later. The three Jamaat leaders, arrested Tuesday in connection with a case of hurting religious sentiments of Muslims, were granted bail in the case on Wednesday.


    Leasing system goes at Sadarghat Terminal
BSS, Dhaka

Sadarghat Terminal, the gateway to capital Dhaka by river routes, was made free from leasing system after 42 years as the government handed over the port operation to Bangladesh Inland Water Transport Authority (BIWTA) Thursday.
"The leasing system of Sadarghat Terminal has been cancelled to free passengers from harassment by private operators," Shipping Minister Shajahan Khan told journalists at a press conference.
He however, said Waiz Ghat, Simpson Ghat, Parking Yard and Cargo Ghat would be run under the traditional leasing system, although steps would be taken to free the river terminals all over the country from leasing in future. According to BIWTA, passengers would have liberty to carry their luggage and goods on their own paying a lump sump amount of Taka 4 (four) only to the terminal authority.
Besides, a group of designated labour force in sky colour dress would remain engaged to help passengers carry luggage and goods at a rate fixed by the authority.
"This new system of handling of labourers would drastically cut the harassment of passengers by syndicated labour force in the terminal," said a BIWTA official on the sidelines of the press conference.


    Mugger killed in ‘gunfight’ with police in city
TBT Report

An alleged mugger was killed in a gunfight with police at Natun Bazar road in city's Gulshan thana early Thursday taking the total of such extra judicial killings to 135 in 11 months from August 1, 2009 to July 1, 2010.
With this 43 extra judicial killings took place in the year of 2010. Meanwhile, RAB DG recently said as many as 622 people were killed in 'crossfire' since the formation of RAB on March 26, 2004.
UNB news agency reports: An alleged mugger died and another sustained bullet injuries after a gunfight with police in city's Gulshan thana early Thursday.
Police said mugger Manik, 30, received injuries in his left leg and his accomplice Mizan, 29, in both legs.
Later, they were admitted to Dhaka Medical College Hospital where Mizan died at about 6am. Police said six muggers traveling in a private car fired on them as they challenged the criminals in front of House No. 38 of road no. 43 in Gulshan at about 1:00am. Later, the gunfight ensued as police returned fire leaving them injured.
At one stage, police detained bullet-wounded Manik and Mijan and also two other accomplices-Aslam, 35, and Jalal, 28, while two others fled from the scene. One pistol and four bullets were also recovered from Manik's possession. Two police constables Abdul Malek and Shahidullah were also injured in the incident.
However, deceased Mijan's wife Taslima alleged that her husband was killed in police custody. Gulshan thana police detained Mijan on Tuesday night, Taslma told reporters at DMCH.
How Mijan committed crime Wednesday night as he was in police custody, Taslima said. Refuting the allegation Gulshan thana Officer-in-Charge (OC) Kamal Uddin said that the gangsters were engaged in mugging people, especially foreign women rickshaw passengers, in Gulshan, Banani and Dhanmondi areas in last two months. They reportedly committed 20-30 muggings in the Gulshan area in the last two months, the OC said.


    PDB to purchase 200 mw electricity without tender
UNB, Dhaka

The state-owned Power Development Board (PDB) on Thursday signed contracts with two private companies to purchase 200 MW electricity from quick rental power plants (QRPP).
As per contracts, the IEL Consortium and Associates, a subsidiary of Orion Group, will set up a 100 MW plat at Meghnaghat in Narayanganj within next nine months and the PDB will purchase electricity from the plant for next 5 years at a rate of at Tk 7.78 per unit (per kilowatt hour).
Similarly, Dutch Bangla Power Ltd will set up a 100 MW plant at Siddhirganj in Narayanganj in the next nine months and PDB will buy electricity from the plant at the same rate. Obaidul Karim, Chairman of Orion Group, signed the contract on behalf of his company while Alauddin Ahmed Chowdhury, who served as protocol officer to Prime Minister Sheikh Hasina during her last tenure, signed the contracts on behalf of his company Dutch Bangla Power Ltd. PDB secretary Md. Azizul Islam signed the agreements on behalf of his organisation.
With the signing of latest contracts, the PDB so far signed a total of 7 contracts with different private sponsors to set up rental power plants with a total capacity of about 700 MW.

   

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Dhaka seeks more help from rich nations to combat climate challenge

BSS, Dhaka

State Minister for Environment and Forests Dr Hasan Mahmud Thursday urged leaders of the developed nations to extend more financial and technology support to the developing world to face the challenges of climate change.
"Not the developing countries, but humanity will suffer due to inadequacy and delay in delivering adequate support to cope with challenges of climate change," he said.
Dr Hasan was addressing the 7th meeting of the Major Economic Forum (MEF) on Energy and Climate in Rome, Italy today, official sources here said. He attended the two-day meeting on special invitation of the forum where 13 ministers from 20 developed and developing countries including the USA, the UK, Canada, China, Germany, India, Japan, Russia turned up. Environment minister of Italy Stefania Prestigiacomo inaugurated the meeting on June 30. The MEF leaders discussed the issues related to world environment, Copenhagen Accord, Kyoto Protocol, and other issues leading to Cancun Conference to be held in November next.
Dr Hasan reminded all about the differentiated responsibilities of all parties with regard to mitigation efforts and highlighted the needs for national efforts by developed nations to combat climate change. With regard to global mitigation efforts he said, "we must bear in mind that humanity as a whole should not make the same mistake as they have done in the past".
The state minister mentioned that there should be enough incentives for the developing countries and LDCs in the form of technology transfers and financial assistance to pursue mitigation as well as adaptation efforts.
Despite their different opinions, the leaders highlighted the importance of ensuring equity, transparency and necessity of Monitoring, Reporting and Verification (MRV) of climate mitigating actions.


    JS body to probe irregularities in purchase of paper for textbooks

BSS, Dhaka

The Parliamentary Standing Committee on Education Ministry on Thursday formed a sub-committee to probe alleged irregularities in the purchase of printing and cover paper for secondary school textbooks of academic year 2010.
The three-member sub-committee, formed at the 16th meeting of the standing committee, will submit its report within 15 days, said a press release.
Standing Committee Member Sheikh Abdul Wahab is the convenor of the sub-committee while Kazi Faruq Kader and M Shah Alam are members.
Held at Jatiya Sangsad (JS) Bhaban with committee Chairman Rashed Khan Menon in the chair, the meeting discussed in detail the report of the probe body formed on irregularities in recruitment at National University during the last four-party alliance government.
The meeting asked for a report within two months on implementation of seven guidelines issued by the education ministry to National University. It also discussed about the letter sent by the parliamentary standing committee on land ministry.
Committee members Mirza Azam, Moudud Ahmad, Kazi Faruq Kader, Biren Sikder, M Shah Alam, M Ziaur Rahman and Alhaj Mamtaz Begum attended the meeting.
Chairman of Parliamentary Standing Committee on Land Ministry AKM Mojammel Haq attended the meeting on a special invitation.
Education Secretary Syed Ataur Rahman, University Grants Commission (UGC) Chairman Prof Nazrul Islam and senior officials concerned were present at the meeting.


   ADB extends loan for food security
BSS, Dhaka

The Asian Development Bank (ADB) extended financial assistance to Bangladesh to grow high-value crops including vegetables, spices and fruits that will boost incomes for poor farmers and support the nation's food security.
ADB's concessional Asian Development Fund sanctioned a loan of 40 million US dollars to support the development of high-value crops in 27 districts in the southwest and northwest of the country, an ADB press release said on Thursday.
The focus of the project will be on crops with proven market demand, high profitability, and potential for commercialization, including fruits, vegetables, pulses, spices, cut flowers, potted plants and value-added agro-products.
With Bangladesh highly susceptible to extreme weather events due to its low-lying position along the Bay of Bengal, the project will also pilot test climate-resilient varieties of crops in drought and flood-prone areas.
Under the project, training in production and post- harvest processing and marketing of high-value crops will be provided to reduce post-harvest losses and improve produce quality.
The loan, which will finance 87 percent of the total project cost of $45.8 million, has a 32-year term with an eight-year grace period.
Interest during the grace period is set at 1 percent per annum, rising to 1.5 percent for the rest of the term. The government is extending $5.42 million, with farm communities extending around $390,000. The Department of Agricultural Extension and Bangladesh Bank are the executing agencies for the project, which is expected to be completed by June 2016.


    Govt sincere to make development process much more transparent and inclusive: Planning Minister

UNB, Dhaka

Planning Minister AK Khandaker on Thursday said that the present government is very much sincere about making the development process much more transparent and participatory.
"The mutual participatory mindset between the government and the development partners can play a great role in successful implementation of the development projects," he said while addressing the inaugural session of 'Review of Government and UNDP Run Programmes' held at the NEC-2 in the city's Sher-e-Bangla Nagar. Chaired by Economic Relations Division (ERD) Secretary M Musharraf Hossain Bhuiyan, UNDP resident representative Stefan Priesner also addressed the occasion as guest of honour.
Terming timely and fruitful the implementation of the development projects as a major challenge, the Minister said that the government had been laying special emphasis to operate collective efforts to finish the development projects in due time.
The Planning Minister mentioned that Bangladesh achieved large scale progress while attaining the targets of Millennium Development Goals in some fields which are also termed 'development surprises' by the economists.
AK Khandaker also said that UNDP had long been assisting Bangladesh in human resource development, poverty alleviation, management of natural disasters and reducing the damages of climate change related impacts.


    Six people killed in road accidents
UNB, Bagerhat

Six people, including two Bank staff members were killed in separate road accidents in Bagerhat, Sherpur and Munshiganj on Thursday.
In Bagerhat: Three people including two Bank staff were killed when a truck rammed into their motorcycle in Foila area of Rampal upazila on Mongla-Khulna highway early hours of Thursday. The deceased were identified as Sukanta Kundu, 29, officer of Agrani Bank Chulkathi branch, Mizanur Rahman, 48, clerk of the bank and the bike driver Ali Sheikh, 55, of the upazila.
Police said the accident took place late at night when the cement laden truck dashed the motorcycle coming from opposite direction, leaving Mizanur and Ali Sheikh dead on the spot. Sukanta died on the way to Khulna Medical College Hospital.
Police said the two bank staff members were returning home by hiring the motorcycle of Ali Sheikh.
In Sherpur: Two people, including a woman, were killed and another three injured in a road accident at Nabinagar in the district town on Sherpur-Dhaka highway. One of the deceased was identified as Abdul Ahad Sarkar, 26, employee of the district Palli Bhidyut Samity. He hailed from Narsingdi district. The identity of the woman, aged about 30 could not be known immediately.
Police said the accident occurred at 9:30pm when a goods laden truck rammed a three-wheeler tempo in the area leaving two tempo passengers dead on the spot and three others, including its driver, critically injured. The critically injured tempo driver Obaidullah, 25, Budu Miah, 45, and Aynal Haque, 26, were admitted to Sadar hospital.
Another report from Munshiganj adds: A minor schoolboy was killed as a bus ran over him at Kuchiamora on Dhaka-Maowa highway in Sirajdikhan upazila on Wednesday. The deceased was identified as Mehedi Hasan, 11, only son of Mobarak Hossain of Kuchiamora Kaijjarchar village and a class seven student of local Adarsha High School.


    Plot to murder Hasina
Charge framing defers for five weeks

UNB, Gopalganj

A court in Gopalganj on Thursday deferred by over five weeks the scheduled hearing on charge framing against Mufti Hannan, top leader of outlawed JMB, and eight associates in a sedition case, as no defence lawyer appeared in court for the accused.
Additional district and sessions judge Gholam Morshed passed the order and fixed August 8 as the next date for charge framing. The accused were produced in the dock at 10:30 am amid tight security. They are facing three criminal cases including plotting murder of Prime Minister Sheikh Hasina by planting bombs at the meeting venue in Kotalipara and nearby helipad on July 20 in 2000.
Several hundred people thronged the court precincts to have a look at militant leader Mufti Hannan.
Elite force Rapid Action Battalion (RAB) and police whisked Mufti Hannan away from the court, preventing press photographers from taking snaps.


    Tk 30 crore assistance to encourage jute cultivation: Matia
UNB, Dhaka

Agriculture Ministry has allocated Tk 30 crore for assistance of 15 lakh farmers under 28 districts during the current jute cultivation season to encourage jute cultivation.
Agriculture Minister Matia Chowdhury disclosed it addressing a press briefing at her office on Thursday.
The allocation was made mainly to encourage jute farmers to switch over to modern system of cutting and rotten jute plant instead of traditional method to check wastage of jute fibers, reduce production cost, popularize environment friendly technology and to get quality jute-stalk Under the scheme each farmer will be provided Tk 200 cash for buying necessary items include big bowl, preparing mini pond, polythene and fertilizer for applying the new method of rotten of jute and removing jute fibre. 15,000 ribboner will be supplied free of cost at 171 upazilas under the targeted 28 districts to extract jute fibre from jute plant to check fibre wastages, it was informed at the briefing.

   

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Editorial

Help the flood and erosion victims

Flood and erosion situation has deteriorated in different parts of the country intensifying the sufferings of the affected people, specially the marooned ones. According to agency reports, Jamuna and Brahmaputra rivers continued to swell in Jamalpur and Gaibandha respectively inundating new areas of the two northern districts and worsening the flood situations there. The Jamuna was flowing 9cm above the danger level at Bahadurabad Ghat on Wednesday triggering massive erosion and extensive inundation in Islampur upazila leaving 1,094 families marooned. Hundreds of people of Kulkandi union took shelter in safer places after becoming homeless. New breaches developed in Harindhara embankment.The flood caused extensive damage to crops, especially jute, sugarcane and vegetables.
In Gaibandha Brahmaputra was flowing 27cm above the danger mark. Moreover, waters of Tista, Korotoa and Ghaghot rivers continued to rise sharply on the day, overflowing their banks engulfing fresh areas. Flood waters entered low-lying areas of Sadar upazila where people started to leave their homes for safer places. Besides, vast areas of Sundarganj, Saghata and Phulchhari upazilas went under flood waters leaving 30,000 people marooned. Besides, flood situation deteriorated further in Sherpur, Sunamganj and Maulvibazar districts rendering thousands of people marooned who have taken shelter on embankment and highways under open sky. Reports say that the sufferings of the people affected by flood and erosion know no bounds as they are getting very little or no relief material.
Flood and erosion are annual Phenomenon in our country. This year also these two scourges have hit different areas . Waters are rolling down from the upstream in India inflating the Brahmaputra and the Jamuna in northern region and Kushiara and Surma rivers in Sylhet . Sutarkandi land port has gone under water and export-import activities with India remained suspended.
Meanwhile, heavy rains and continuous onrush of hilly waters caused further rises in the major rivers on the Brahmaputra basin with sporadic incidents of erosions . With the continuous rises in the water levels in recent days, stronger currents caused sporadic erosion in many riverside houses and lands at various places in Kurigram, Gaibandha and Sirajganj districts. A sudden rise in the water level of the Brahmaputra sparked erosion of its banks in Sadar upazila of Sherpur district devouring 15 houses in Charpakkhimari union, breaking four try-dams and threatening two school buildings at Bepari Para .Besides, different rivers are eroding their banks and devouring land, crop fields and homesteads in different areas.
With the rise of water level, large scale erosion by rivers is going on at different places of the country. The Padma has devoured two kilometre crop land in Aliabad union under Faridpur Sadar thana. The river has devoured two hundred homesteads and trees and crops recently. Similarly rivers are eroding their banks at Manikganj, Munshiganj, Shariatpur, Bogra and Maulbibazar. Many families rendered homeless by erosion are now passing days under open sky.
Flood and erosion are nothing new in Bangladesh as they ravage the country every year and leave trails of destruction across the country. The huge people turned destitute or homeless due to flood and erosion swell up the number of rootless floating people streaming to the cities for shelter and livelihood. Thus flood and erosion cause colossal national loss every year. But unfortunately, effective measures are not taken to resolve these problems and check their recurrences annually.
The sporadic and unplanned measures taken in this regard do not serve any purpose. Well planned concerted efforts are needed for permanent resolution of the flood and erosion problems.Government should take steps to construct adequate number of embankments and dump sandbags there to stop the erosion and control the fury of the flood. For the moment, providing shelter and adequate relief materials, food, water and medicines for the flood and erosion victims is the prime need. The government should stand beside the marooned people with help in this hour of crisis.


 Law and order situation

Conflicting views on the country's law and order situation were expressed in the Parliament on Wednesday by Independent MP Fakhrul Azim and Home Minister Sahara Khatun. Fazlul Azim alleged that the country's law and order deteriorated sharply as extortion, tender manipulation, rape and land grabbing continue unabated. He said identified criminals in the name of the government are carrying out terrorist activities under the nose of the police. In response, Sahara Khatun said 400 people were killed in Azim's Hatia constituency during the BNP government when he belonged to the BNP. She told the House that the law and order in the country is now much better than any other time in the past. he law enforcement agencies are providing safety and security to the people as well as ministers and lawmakers, she said.
Without entering into the rhetoric on the issue it can be said that the country's law and order situation is far from satisfactory. The Home minister may be complacent with the prevailing situation but the people are worried as there is virtually no security of life and property even in the capital city. It is immaterial as to whether the situation is better or worse than that in the past, but the fact remains that the present law and order situation is alarming.
The deterioration of the law and order situation in the city and elsewhere is causing serious concern among the public. Incidents of extortion, snatching, theft, robbery and murder have increased in the capital and other parts of the country in recent days. Against this backdrop, the government should deal with the law and order situation more stringently to ensure security of lives and properties of the people. Stern measures must be taken against the offenders irrespective of their party affiliation to reassure the people that the government is not ready to spare anybody if found engaged in criminal activities.

   

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Analysis

The consulates snag

Until Pakistan is allotted land or a suitable building in Mumbai to open a consulate there, it is not ready to grant permission to India to reopen its consulate in Karachi.

Babar Ayaz

One big snag in the process of normalisation of relations between Pakistan and India is the delay in the reopening of the deputy high commissions in Karachi and in Mumbai, the commercial hubs of the two countries. Until Pakistan is allotted land or a suitable building in Mumbai to open a consulate there, it is not ready to grant permission to India to reopen its consulate in Karachi.
The former Indian deputy high commission in Karachi - the huge building on Fatima Jinnah Road - is prime property at a central location. There is also the unused sprawling residence of the deputy high commissioner and a large apartment building for the mission's staff.
Closed since the 1965 war, the Indian deputy high commission was reopened in 1978 on the understanding
that Pakistan would soon be able to open its consulate in what was then Bombay.
For its mission there, Pakistan sought Jinnah House, which Mr Mohammad Ali Jinnah had built for himself in 1939. Prime Minister Jawaharlal Nehru had himself said in a speech that Pakistan could open its consulate in that building in Malabar Hills. But Jinnah House served as the British deputy high commissioner's residence until 1981, when it was vacated by the British at Pakistan's request, after Islamabad announced its intention to open its consulate there.
According to Foreign Office sources, the announcement had come after the Indian external affairs minister at that time expressed India's readiness for this.
In August 1983 Pakistan appointed a deputy high commissioner for Bombay in anticipation of its mission opening in Jinnah House. The diplomat was recalled less than three months later as it became clear that this was not going to happen.
In migrating from one country to the other at the time of Partition, refugees lost claims to properties they had left behind. Such properties, including Jinnah House, were declared evacuee properties.
And now Mr Jinnah's grandson, Nusli Wadia, has laid claim to the residence. The matter is before a court, which may take years to decide the case.
In 1992, in another bid to open a consulate in Bombay, Pakistan appointed a deputy high commissioner who stayed at a hotel, from where he conducted consular operations while the search for alternative accommodation continued. Pakistan recalled him in March 1994 when a suitable site could not be found for the building. "After all, we can't operate flying a Pakistan flag out of a window in some crowded residential lane," as a Pakistani diplomat commented.
In November 1994, Pakistan asked India to close its deputy high commission in Karachi, accusing it of involvement in the bloody political violence then taking place in the city.
In 2008, Pakistan made another bid, but rejected as unsuitable the land India offered for the building of a deputy high commission in Mumbai.
Pakistan also tried to rent a building for the consulate. But, reportedly under pressure from the Shiv Sena and rightwing Hindu politician Bal Thackeray, the owner withdrew her offer within days of the finalisation of the arrangements.
Since the terrorist attacks in Mumbai in November 2008, it has become even more difficult for Pakistan to get a building. The project can clearly not succeed without the Indian government's wholehearted involvement and assistance.
People most affected by this situation are those with family members and relatives living across the border. Pakistanis in Sindh who have relatives in the Indian states of, say, Gujarat and Rajasthan and other parts of that country. Also affected are Pakistan's Dawoodi Bohra and Parsi communities, mostly living in Karachi or Hyderabad, who have their respective religious centres in and around Mumbai.
Given the importance of the two cities, passenger traffic on the Karachi-Mumbai sector would increase manifold if visa facilities were made available. At present only 4,500 visa applications originate from Mumbai. In many cases, applicants are called for interviews in New Delhi, where the applications have to be sent, as in the case of applicants from Sindh having to travel to Islamabad to obtain visas for India.
This additional expense is compounded when an applicant has to make more than one trip to across the border, since multiple visas between the two countries are almost non-existent. Any new trip to the other country first requires a visit to the respective capital for visa.
India is ready to open its consulate in Karachi, and has refurbished its buildings in anticipation of the necessary permission. This is unlikely to be forthcoming as long as Pakistan does not get suitable property for its consulate and for the housing of its staff. This is even more difficult now because of pressure from extremist groups operating in Mumbai.
Pakistan could be magnanimous and allow the Indian consulate to reopen in Karachi even if it is unable to open a consulate in Mumbai. Or agree upon another city, say, Pune or Ahmedabad, for its deputy high commission. However, given the kind of bureaucratic tit-for-tat both governments engage in, this is also unlikely. Islamabad will continue to insist on reciprocity, while New Delhi will not make the serious intervention that is needed to allow Pakistan to open a consulate in Mumbai.
And so, the asha (hope) for the reopening of consulates in Karachi and Mumbai will remain unfilled.


The writer is a freelance journalist. Email: ayazbabar@gmail.com


  No easy way out of Afghanistan

The US civilian and military establishment needs to review its operational strategies in Afghanistan to evolve solutions to the questions that baffled McChrystal. The most crucial issue is how to win the hearts and minds of the people of Afghanistan

Dr Hasan-Askari Rizvi

The unceremonious exit of General Stanley McChrystal, the commander of the International Security Assistance Force (ISAF) in Afghanistan, asserts the primacy of political rule and that persons in uniform cannot make controversial comments in public about their civilian and military superiors and the official policy.
However, this incident raises issues far beyond decorum and discipline in professional armies. A senior officer of McChrystal's stature is not likely to make such a public statement unless he is under intense pressure for some reasons. These issues include the inability to successfully complete the assigned task or sharp policy management differences with the top civil and military authorities. These differences can often turn into personality conflicts, building up intense psychological pressure to the extent that a person loses professional modesty.
General Stanley McChrystal assumed command of the International Security Assistance Force (ISAF) in mid-June 2009, replacing General David McKiernan who had developed some differences with his bosses in Washington. McChrystal took over with the agenda of realising the goals of the new Obama administration for neutralising the Taliban and al Qaeda threat in Afghanistan to the extent that the US administration is in a position, by July 2011, to initiate the withdrawal of its troops.
McChrystal also requested an additional 50,000 troops in his August 2009 report, which was leaked to the press, causing his first controversy. In late November, President Barack Obama agreed to make 30,000 new troops available to him.
When the new operation was launched in Marjah and Nad Ali in Helmand Province in February 2010, the ISAF had five major objectives: exclusion of the Taliban from the region; undermining their capacity to regroup and recover; installing a credible Afghan-led administration in the areas freed from Taliban domination; economic reconstruction, and rehabilitation work. There were a couple of overall goals for the ISAF. These included curbing the drug trade, weakening or co-opting tribal chiefs/warlords so as to promote stability, seek their cooperation against Taliban groups and strengthen the control of the Kabul government, build the troubled economy and help the Kabul government check corruption in the Afghan administration, fast track professional training of the Afghan National Army and the police and control cross-border movement of militants across the Pakistan-Afghanistan border.
The Marjah operation registered success in its initial stage and Taliban groups retreated to the adjoining areas. However, this success could not endure for a host of reasons, especially because of the lack of a credible Afghan administrative and security system. The planned security operation around Kandahar also did not materialise and the Taliban tactics of 'hit and run' caused increased human losses to US and NATO troops in the last two months.
The absence of visible success increased criticism of the ISAF strategy and the US policy in Afghanistan. It generated a multi-dimensional and multi-level debate inside and outside the US administration, focusing on how to proceed in Afghanistan to produce successes by the end of the year. Should the US/Afghan authorities build support for themselves in the Kandahar area by winning over the common people or should they go for a major military operation first and then focus on reconstruction and rehabilitation? The greatest challenge was the widespread corruption in the Afghan administration and mafia-like role of Kandahar-based powerful groups connected with the Kabul government. Still another perspective talked of greater air power, including drone aircraft, to fight Taliban groups and local adventurists.
It seems that the key players amongst the US civil and military authorities diverged on these issues. These included the ISAF command, US ambassador to Kabul, US Central Command (CENTCOM), the Pentagon and the department of defence. The divergence on these issues was accompanied by intense domestic pressures in the US to produce some successes in Afghanistan vis-ŕ-vis the Taliban and al Qaeda. There were no signs that the ISAF could turn the tide in Afghanistan.
The US plans to initiate withdrawal in July 2011 have forced various players in Afghanistan to think of the day after. The major concern is what happens if the US quits while Afghanistan continues to be in turmoil. President Hamid Karzai is exploring the prospects of his government's equation with some Taliban groups. Pakistan is seeking partners in post-US Afghanistan. Both the Kabul government and Pakistan are also concerned about the possible disposition of India, Iran, China and Russia towards an anarchic Afghanistan.
Pakistan will welcome the appointment of General David Petreaus, although this is a junior posting to his current assignment as the commander-in-chief CENTCOM. He maintains smooth working relations with Pakistan's military high command and no time will be lost in 'getting to know each other'. Greater cooperation between the Pakistan Army and the ISAF is needed for controlling the situation in the tribal areas and southern regions of Afghanistan.
The US civilian and military establishment needs to review its operational strategies in Afghanistan to evolve solutions to the questions that baffled McChrystal. How to address the challenge of the Taliban by mixing coercive methods with political measures? The most crucial issue is how to win the hearts and minds of the people of Afghanistan and how to provide them security against threats from different Taliban groups and local warlords.
Both the US military authorities and the Kabul government should work hard to give 'hope' to ordinary Afghans for their future. With the exception of the people close to the Kabul government, the citizens have nothing much to look forward to in their lives. Nor does the Kabul government protect them from the Taliban who are bound to return to the area after US troops leave. Their survival instinct forces them to yield to Taliban pressure.
The new US policy must also take into account Pakistan's concerns about the future of Afghanistan. It is perturbed not only by the growing Indian activism in Afghanistan but also by the threat of anarchy in Afghanistan, which can make this country the site for a proxy war by various countries in the region. A turbulent and strife-ridden Afghanistan threatens Pakistan's internal security and stability.
The US may quit the region but this option is not available to Pakistan whose own future as a functioning state is more uncertain today than was the case prior to September 2001.

Dr Hasan-Askari Rizvi is a political and defence analyst

   

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Viewpoints

Latin America: World Cup is not the only success

Yet, despite the pluses in its history, which many would argue far outweigh its negatives, America has never
given Latin America the attention it deserves.

Jonathan Power

If Latin America disappeared into thin air tomorrow what would it be remembered for? Historically for the decimation by the Spanish Conquistadors of the great civilizations of the Incas and Aztecs, for the 20th century plunder of the Amazon, for the worst income inequalities in the world, for the highest crime levels of contemporary society anywhere and for giving houseroom to the drug mafias.
And the pluses? The near absence of major interstate wars and the concomitant achievement of relatively low expenditures on arms, its nuclear-free zone, the first of its kind (not including the one for Antarctica), its lack of institutionalized racism (although there is plenty of discrimination) and the nonexistence in any period of its history of Jim Crow laws, its outlawing of capital punishment long before the rest of the world got round to it, and now home to some of the world's hot spots of economic advance, particularly Brazil, Chile, Mexico and Colombia. Perhaps we should add to that its achievement in dominating the final rounds of the World Cup!
Yet, despite the pluses in its history, which many would argue far outweigh its negatives, America has never given Latin America the attention it deserves, unless, as with John F. Kennedy and Cuba, Ronald Reagan with Central America, George W. Bush with Chavez' Venezuela, it convinced itself that the Marxists were about to take over and had to be confronted. And unless they were the home of major drug traffickers, Colombia and Mexico in particular.
When Barack Obama became president, facing so many demanding issues elsewhere, it was assumed that the "backyard" would be relegated, once again, to the province of an assistant secretary of state and, drug trafficking aside, all but forgotten in the White House. It didn't happen. Almost immediately the administration organized high-level visits to the continent. It eased the restrictions on travel and the sending of remittances to Cuba by Cuban Americans. And it changed the reflex, hostile, attitude to the populist, left leaning, governments of Bolivia, Ecuador, El Salvador, Honduras, Nicaragua and Venezuela. It was not going to find itself on the wrong side of the road as did the administration of George W. Bush when it welcomed an attempted coup against Venezuela's president, Hugo Chavez, only to have to reverse itself a day later when it became clear the coup had failed.
Nevertheless, only a year and a half later, some of the positive impetus appears to have been dissipated. Immigration reform has slipped down the agenda. The administration's embrace of the campaign to stop the export of small weapons that were fueling the deadliness of Mexico's drug mafias has been shelved under the influence of America's powerful gun lobby. Likewise, it has allowed to lapse an experimental program that allowed Mexican trucks to enter the US. It has postponed action on the free trade agreements being negotiated with Panama and Colombia. It has continued to subsidize US corn-based ethanol (a substitute for petrol) and maintained high tariffs on ethanol exported from Brazil.
Washington, or at least the State Department, also seems to find it hard to accept the emergence of Brazil as a heavy hitter on the world scene. Brazil makes up half the Latin American continent and now, after decades of low and unequal growth and high inflation, it has an economy and a foreign policy to match its size.
Late last year, Secretary of State Hillary Clinton warned Latin American and Caribbean governments that might be tempted to "flirt with Iran" to "take a look at what the consequences might be". When Brazil, alongside Turkey, recently tried to broker a compromise with Iran on the issue of its uranium enrichment program the State Department was critical, even though before the negotiations actually began Obama had sent a letter to President Luiz Ignacio Lula da Silva encouraging him to launch his Iranian initiative.
Although for the Obama administration "regime change" is out of the window, whether it be Cuba or Venezuela, the threat of the "big stick" still seems to be the instinct, if not of the White House, at least of important parts of the American government. The old assumption that whatever the issue - arms sales, trade protectionism, immigrant flows, drug running and foreign policy - it is Washington that lays down the road to be followed - no longer works.
Not just Brazil but a sizable number of Latin American states are comfortable in their own skins. They see their economies growing and are well enough run that even the Great Recession of 2007-2009 has not badly affected them. They know they are making progress on poverty. And, increasingly, they recall the "pluses" of their history which until recently were downplayed by the world outside and they themselves allowed to be half forgotten.


Jonathan Power is a London-based foreign policy commentator.


  Petraeus faces tough choices

Having signed up last week as replacement for the disgraced Gen Stanley McChrystal, he presumably believes the Afghan war is still winnable, as Barack Obama maintains.
 
Simon Tisdall

If his record in Iraq and elsewhere is anything to go by, Gen David Petraeus is not accustomed to losing. Having signed up last week as replacement for the disgraced Gen Stanley McChrystal, he presumably believes the Afghan war is still winnable, as Barack Obama maintains. But this appears increasingly to be a minority view.
Petraeus has few real options. He can persevere with the twin-track counterinsurgency strategy pursued by McChrystal, using military pressure to create time and space for Afghan civilian governance and reconstruction. But his predecessor recently acknowledged the strategy was not working well in key southern battlegrounds. McChrystal's admission was amplified by CIA chief Leon Panetta at the weekend.
"It's harder, it's slower than I think anyone anticipated," Panetta told ABC News. "Is the strategy the right strategy? We think so ... This is going to be tough," he said.
Petraeus may try to buy time by persuading Obama to fudge his July 2011 'deadline' for beginning American troop withdrawals. He implied this month that any drawdown would be determined by conditions on the ground. But if he goes down this road, he will collide head-on with the vice-president, Joe Biden, and Democrats worried about re-election.
Biden is adamant: "In July of 2011, you're going to see a whole lot of people moving out. Bet on it," he said.
On the other hand, the defence secretary, Robert Gates, was more ambiguous - an indication, if Petraeus needed one, of what a can of worms Afghan policy has become.
Petraeus may also try to reduce the political heat by de-emphasising the importance of a scheduled White House progress review and Nato's Lisbon summit in November, where allies are seeking firm exit timelines. He could throw his weight behind attempts to draw Taliban elements into talks, as Pakistan, the UN and others have attempted. He could seek the replacement of Karl Eikenberry, the US ambassador to Kabul, and Richard Holbrooke, the US envoy, who have arguably become part of the problem. Or he could chuck more money at the problem, buying off tribal leaders and potential foes.
But Petraeus, who made his name with the 2006-07 surge that reputedly turned Iraq around, may be tempted to try and pull that trick again.
Speaking before Congress this month, he said it was "absolutely" possible that if more troops were required in Afghanistan, more would be sent - in addition to the two tranches of 20,000 and 30,000 reinforcements dispatched by Obama.
In other words, to avoid definitively losing a war many already believe lost, Petraeus could decide to go for broke with a third Afghan surge. Obama may oppose him. The president has sacked two commanding generals in Afghanistan in two years. He simply can't afford to lose another one. Nor can he afford, politically, to "lose" Afghanistan.
But for Petraeus, escalating an unpopular war might be just as hazardous as not doing so. Either way, his goose could be cooked. "The administration is hoping that Petraeus can replicate his Iraq miracle," said US columnist Charles Krauthammer.


  Spy case embarrasses Russia

To have deep-cover agents identified before they could do any serious spying is a blow for Medvedev.

David Hearst

It is heartening to know that even Russian spies have problems with their computers. Anna Chapman complained about the difficulties she had establishing a private wireless local area network to her handler UC-I, so that she could communicate with the van parked outside the coffee shop.
Suspicions were mutual. C or Moscow Centre never quite understood why the couple who went under the name of Richard and Cynthia Murphy had to buy that house in New Jersey: "We are under the impression that C views our ownership of the house as a deviation from the original purpose of the mission," they said in an intercepted message.
The Murphys told C, perhaps somewhat defensively: "It was a convenient way to solving the housing issue, plus 'to do as the Romans do' in a society that values home ownership".
What did C expect? If they want 11 "illegals" to go native in America in order to establish a long-term, deep cover, then obviously home ownership in New Jersey beckons. Mrs Murphy did a good job. She certainly fooled the neighbours. "They couldn't have been spies," said Jessie Gugig. "Look what she did with the hydrangeas."
The 55-page indictment filed by the FBI revealing the existence of 11 (the 11th has been arrested in Cyprus) alleged spies who had spent years adopting false US identities, will not, however, make pleasant reading for C otherwise known as Russia's External Intelligence Service, the SVR.
The FBI operation represents the biggest penetration of SVR communications in recent memory. The FBI read their e-mails, decrypted their intel, read the embedded coded texts on images posted on the net, bugged their mobile phones, video-taped the passing of bags of cash and messages in invisible ink from one agent to another, and hacked into their bogus expenses claims.
Spies who defect paint a lurid picture of their former bosses. Their kiss-and-tell books are inevitably presented as "wake-up" calls to their new masters. Sergei Tretyakov, who worked as a press officer at the Russian Mission of the United Nations in New York, but in fact ran a number of agents in the US and the UN, was the last SVR spy to defect.
In Comrade J: The Untold Secrets of Russia's Master Spy in America After the End of the Cold War by Pete Earley, Tretyakov said that nothing had changed.
The "main enemy" defined by Soviet military doctrine in the Cold War, had simply become the "main target".
Same tactics
"Nothing has changed. Russia is doing everything it can today to embarrass the US. Let me repeat this. Russia is doing everything it can today to undermine and embarrass the US. The SVR residenturas in the US are not less, but in some aspects even more active today than during the Cold War. What should that tell you?"
But something, surely has changed. The tradecraft used by the alleged SVR ring was amateurish, and will send shivers down the spine of the rival intelligence organisations in Russia.
This was bungling on a truly epic scale. No secrets about bunker-busting bombs were actually obtained, but the network was betrayed.
The defendants are not charged with espionage, but with charges like conspiracy to act as unregistered agents of a foreign government. To have a spy ring uncovered before they could actually do any serious spying, is doubly embarrassing.
Not that anyone in MI6 in Britain should gloat. In the last decade they have had two major expulsions of their spies in Moscow, who were caught on film red-handed trying to do exactly what the FBI caught the Murphys at. In one case the British resident spymaster used a mentally unstable junior Russian diplomat, Platon Obukhov, to spy on his father, a former Soviet deputy foreign minister and one of the main negotiators of the intermediate nuclear forces treaty removing medium-range missiles from Europe.
The FBI waited three days after Russian President Dmitry Medvedev's most successful foreign tour to date before making their arrests.
During Medvedev's visit, he and Barack Obama shared a cheeseburger in Arlington, Virginia, and the Russian president toured Silicon Valley and emerged with his very own iPhone 4 from Steve Jobs. More than that, he won a pledge from Cisco Systems to invest $1 billion (Dh3.7 billion) as a tenant in Skolkovo, the Kremlin's pet project to create its own Silicon Valley outside Moscow.
Revelations about spy rings are the last thing a politician such as Medvedev, who presents himself as a moderniser, needs. He has inveighed against the rule of lawlessness in Russia but struggles to make the case that he can do anything about it.
Perhaps there was a covert message in all this that Washington was sending to Moscow. You can have the old relationship or the new one, but you would get more out of us through the front door.


  Taliban switch tactics

“If the truth be told, there’s still much hard fighting left to do”, said Maj-Gen Richard Mills, the American commander of 20,000 US marines and 8,000 British troops in Helmand.

Richard Norton-Taylor

British marines deployed in Sangin in southern Afghanistan, where British troops have suffered a high rate of casualties in recent weeks, are facing a growing threat from long-range rifle fire as Taliban fighters change their tactics.
Brig George Norton, deputy commander of British and US forces in Helmand province, said that the marines will be reinforced by a contingent guarding the nearby Kajaki dam. The unit will be replaced by US troops.
More than 800 British troops are based in Sangin, a strategic crossroads in central Helmand where four marines have been killed recently. Two were killed by gunfire recently. The number wounded has not been disclosed. Of the 307 British soldiers who have died in Afghanistan since 2001, 98 have been in Sangin.
Asked about the vulnerability of British troops in Sangin, Norton said: "We are all vulnerable to IEDs [improvised explosive devices], but the insurgents are increasingly using long-distance small arms."
Maj-Gen Gordon Messenger, the UK Ministry of Defence's chief military spokesman, said Taliban-led insurgents were resorting to what he described as an "increasing use of single shots at range". British officers said it would be misleading to describe the shots as coming from snipers, a word suggesting the use of sophisticated rifles by well-trained fighters.
They said it was more a question of hidden insurgents firing from a distance and then fleeing an area difficult for British troops to attack because of the danger of civilian casualties.
"If the truth be told, there's still much hard fighting left to do", said Maj-Gen Richard Mills, the American commander of 20,000 US marines and 8,000 British troops in Helmand. He acknowledged it had been a difficult week for British forces "but they are holding up very, very well."

   

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International

Nepal’s Maoists stake claim to lead new govt
AFP, Kathmandu

Nepal's Maoists staked their claim on Thursday to lead the troubled country's next government, a day after the prime minister resigned under intense pressure from the former rebels.
The Maoists, who waged a bloody 10-year insurgency against the state before entering mainstream politics and winning 2008 elections, say that as the largest party in parliament they should be at the helm of a new government. "We have decided we will try to garner support from the other parties for a government of national unity led by us," party spokesman Dinanath Sharma told AFP after a meeting of senior Maoist leaders.
Outgoing prime minister Madhav Kumar Nepal tendered his resignation to the president Wednesday after a live television address in which he said he wanted to end a long political stalemate.
His 13-month term in office was marred by a series of power struggles with the Maoists, who have lobbied aggressively for a return to power since their government fell in May 2009 after a row with the president.
He has agreed to stay on in a caretaker role until a replacement is selected, and Nepal's President Ram Baran Yadav on Thursday asked political leaders to form a power-sharing government within the next seven days.
"The president has asked the political parties to form a consensus government by July 7," said Yadav's spokesman Rajendra Dahal.
"If the parties fail to form a consensus government by that date they will be asked to form a majority government."
Political commentators warned that a delay in forming a new administration could prove disastrous for the impoverished Himalayan nation.
"There will be chaos. All the government's plans and policies will be affected," said Kiran Nepal, editor of the fortnightly magazine Himal Khabarpatrika.
Nepal's 601-member parliament, or Constituent Assembly, was elected in 2008 with a two-year mandate to draft a new national constitution and complete a peace process that began when the country's civil war ended in 2006.


   NATO kills over 30 Taliban in Afghan gunbattle
AFP, Kabul

NATO forces in Afghanistan said Thursday they had killed at least 31 Taliban fighters and captured a rebel chieftain after a raid on an insurgent hideout in the southern province of Helmand.
Troops called in air support during running gunbattles in the province's troubled Baghran district which erupted after rebels attacked soldiers moving in on the compound with machine guns and rockets, it said.
NATO's International Security Assistance Force (ISAF) said in a statement that the Taliban chief of Naw Zad, another restive district of Helmand, was injured and detained following the fighting.
"Afghan and international security forces captured the Taliban district chief of Naw Zad and killed a large number of insurgents during an operation in remote Baghran district in northern Helmand province last night," it said.
German army General Josef Blotz, a spokesman for ISAF, said at least 31 insurgents had been killed in the operation.
"Throughout the four-hour firefight enemy forces attempted to use improvised explosive devices against the security force," he told reporters, referring to home-made bombs regularly used by the Taliban.
"However Afghan and coalition forces employed precision air fire and suppressed the enemy," adding that a huge arms cache and a quantity of opium had been discovered and destroyed.
Troops captured several wounded insurgents following the fighting, ISAF's statement said, and no civilian or soldier was hurt.
"This joint force operation dealt another significant blow to the Taliban network," said Colonel William Maxwell, ISAF Joint Command Combined Joint Operations Centre director.
Taliban militants are waging an insurgency against tens of thousands of international troops in Afghanistan under UN mandate to help keep President Hamid Karzai government's in power.


  China says welcomes visit by US defence secretary
AFP, Beijing

China's military said Thursday it would welcome a future visit by US Defence Secretary Robert Gates, state media reported, one month after a planned trip was called off.
"We still welcome him to visit China at a time which is workable for both sides," Xinhua news agency quoted General Ma Xiaotian, deputy chief of the general staff of the People's Liberation Army (PLA), as saying.
The apparent olive branch comes after Beijing called off a visit by Gates in early June amid military tensions between the two sides, with Gates saying the cancellation showed the PLA was reluctant to engage on defence issues.
The brief Xinhua report gave no other information.
China has denounced US arms sales to Taiwan unveiled in January, and the cancellation of Gates' trip appeared to fit a pattern of stepping back from exchanges with the American military to convey displeasure.
After his visit was cancelled, Gates suggested there was a rift between Chinese civilian and military leaders on the issue.
The US defence secretary said it was his "opinion that the PLA is significantly less interested in developing this relationship than the political leadership of the country".
Gates had planned to visit Beijing as part of an Asian tour.
China in January suspended all military exchanges in protest over the US arms sales to Taiwan, but some officials from the two sides have since met.
Last month, Gates said Beijing's stance "makes little sense", noting that such sales had been going for decades.
Taiwan and China split in 1949 after Communist forces defeated the Nationalists in a civil war and took the mainland. Self-ruled Taiwan has since relied heavily on US military hardware to defend the island.
Gates said Washington would not alter its policy and argued that US weapons sales to Taiwan helped maintain regional peace given China's growing military buildup.


  Tens of thousands march for democracy in Hong Kong
AFP, Hong Kong

Tens of thousands of people massed along Hong Kong's streets on Thursday for a pro-democracy rally on the 13th anniversary of the former British colony's return to China. In a chaotic scene, protesters heckled lawmakers who voted in favour of controversial Beijing-backed political reforms as police kept them apart.
Organisers were expecting around 50,000 protesters to turn out for the annual July 1 march, down from 70,000 last year, underscoring fears that a deep split in the city's opposition camp would deter potential supporters.
The march has become a yearly opportunity for campaigners to show their opposition to Beijing and the local authorities.
But last week's passage of the political reforms that promise an incremental boost to democracy-but not one person, one vote-divided the opposition camp and turned many activists against the moderate Democratic Party.
Raymond Wong, of the radical League of Social Democrats (LSD), told reporters this week that his members would not encourage supporters to clash with the Democratic Party, but added, "we can't guarantee anything".
Hundreds of LSD supporters surrounded a Democratic Party roadside booth in the city's Wan Chai district, booing and shouting "shameless". Other activists accused Democratic Party members at the march of "betraying Hong Kong people", giving its beleaguered lawmakers the thumbs down and blowing vuvuzela horns to punctuate their discontent.
Previously, the opposition were united in their goal to fight for universal suffrage for the city of seven million people in 2012 -- and nothing less.
Thousands of banner-waving activists made their way through the city's searing summer heat, including domestic helpers calling for better wages and minorities demanding an end to racial discrimination,
"I am very dissatisfied about the democratic progress in Hong Kong in the last 13 years," protester Sheri Lai told AFP. "We should not rely on political parties anymore. We should use our voice and sweat to fight for our rights."


  Myanmar democracy activists row over hat symbol
AFP, Yangon

Supporters of Myanmar opposition leader Aung San Suu Kyi on Thursday accused former colleagues who are seeking to set up a new party of copying their symbol of a bamboo hat ahead of rare elections.
Former top members of Suu Kyi's disbanded National League for Democracy (NLD) said they would lodge a complaint with the election commission in the capital Naypyidaw next week about the use of the image in an official seal.
"We will denounce them for using the bamboo hat," said NLD co-founder Win Tin, noting that Suu Kyi's party had used the symbol during 1990 elections which it won but was prevented from taking power.
"The whole country associates the bamboo hat with Daw Aung San Suu Kyi and the NLD," he said.
A group of former NLD members has applied for permission to form a new party-under the name of the National Democratic Force-to run in the country's first election in two decades, expected some time later this year.
The NLD refused to meet a May 6 deadline to re-register-a move that would have forced it to expel Suu Kyi-and opted to boycott the vote, which critics say is a sham designed to legitimise the junta's half-century grip on power.
Suu Kyi has been locked up for almost 15 of the past 20 years and is currently under house arrest at her lakeside home in Yangon.
Analysts say that within the NLD there has been friction between older hardline members and younger more moderate figures who opposed the boycott decision.


  Aquino looks into ‘real’ state of Philippine finances
AFP, Manila

President Benigno Aquino and his team spent their first full day in office Thursday inspecting state coffers as a crucial first step in meeting his vow to root out corruption and help the poor.
Already stuck with a record budget deficit, Aquino has accused his predecessor, Gloria Arroyo, of painting an unrealistically rosy picture of the economy to burnish her legacy after nearly 10 years in office.
Presidential spokesman Edwin Lacierda said Aquino wanted to report the real situation to parliament during his "State of the Nation" address on July 26, when he will seek funding support for his programmes. "The president gave his marching orders to each cabinet member. They have two weeks to get to know the lay of the land," Lacierda told AFP.
Aquino, a 50-year-old economist, took office on Wednesday with a vow to lift his nation out of poverty and wipe out crippling corruption that he said thrived under Arroyo.
The Philippines posted a 162.1-billion-peso (3.5-billion-dollar) budget deficit in the first five months, and analysts say the full-year funding gap is likely to surpass 300 billion pesos.
Aquino ordered a review of all ongoing government programmes and an inventory of all assets to determine which can be sold off to support future projects, Finance Secretary Cesar Purisima told reporters.
The government has pledged increased spending for education, health and low-income housing.
Over the next few weeks Aquino will also go after tax cheats and begin implementing programmes specifically targeted at the very poor, who comprise a third of the population.


  Two soldiers killed in curfew-hit Kashmir
AFP, Srinagar

Two Indian soldiers were killed in a gunbattle with suspected militants Thursday along the de facto border with Pakistan, the military said, as parts of Kashmir region remained under curfew.
The gunbattle erupted along the Line of Control that splits Kashmir between nuclear-armed rivals India and Pakistan after soldiers engaged a group of infiltrating militants, an Indian army spokesman J.S. Brar said.
The latest fighting was reported from northern Machil sector. On Tuesday five suspected rebels and three soldiers were killed in a similar gunbattle.
Violence has risen in recent months in mainly Muslim Indian Kashmir, where two decades of rebellion against Indian rule have left thousands of people dead.
Pakistan denies Indian allegations that it arms and funds rebels.
Elsewhere in Kashmir, Indian troops continued to enforce a strict curfew in parts of the region as tensions remained high after the killing of 11 protestors by security forces during demonstrations this month.
Dozens of women demonstrators, led by the region's leading female separatist Asiya Andrabi, defied the strict security lockdown in the Kashmiri summer capital Srinagar and staged a noisy anti-India rally.
The women later dispersed after police tried to block the raly.
Later, dozens of young men present at the scene hurled stones at the police, sparking a clash that left six protesters and three policemen injured.


 Iran tells UN it is ‘more determined’ on nuclear drive
AFP, Tehran

Iran has written to the 15 members of the UN Security Council insisting that new sanctions slapped on the Islamic republic will not affect its nuclear programme, the state news agency said on Thursday.
Foreign Minister Manouchehr Mottaki said in the letters Iran "considers that the adoption of such (UN) resolutions will not affect its utterly peaceful nuclear programme," the IRNA news agency reported.
Instead, Mottaki added in his letters to the foreign ministers of the Security Council member states, Iran is now "more determined" than ever to develop its atomic programme.
He criticised "the hasty adoption, at the insistence of America and its allies, of an unjust and illegal resolution against the great nation of Iran."
On June 9, 12 members of the Security Council, including all five permanent members, voted in favour on imposing a fourth set of sanctions against Tehran over its uranium enrichment programme, the most controversial aspect of the nuclear drive.
Brazil and Turkey voted against and Lebanon abstained. Mottaki thanked the Turkish and Brazilian foreign ministers for "resisting the pressure of some specific nations and voting against the resolution," IRNA said.
He also reiterated Tehran's position that, "nuclear weapons have no place in Iran's defence and security policies."
World powers led by Washington accuse the Islamic republic of seeking to build nuclear weapons and are demanding that it freeze its uranium enrichment activity, which can be a key step towards developing an atomic arsenal.
Iran insists its nuclear programme is for peaceful purposes only.
The new UN measures authorise states to conduct high-seas inspections of vessels believed to be ferrying banned items to Iran and add 40 entities to a list of people and groups subject to travel restrictions and financial sanctions.
US President Barack Obama was meanwhile expected Thursday to sign a separate US package of tough new energy and financial sanctions on Iran, over and above those approved by the UN Security Council.
The US Senate and the House of Representatives approved the legislation last week by crushing 99-0 and 408-8 margins respectively.


   Turkey, Israel hold secret talks to repair ties
AFP, Ankara

Turkish and Israeli ministers met secretly in Brussels to seek ways of mending fences amid a deep crisis over a deadly raid on Gaza-bound aid ships last month, officials said Thursday.
Turkish Foreign Minister Ahmet Davutoglu and Israeli Trade Minister Benjamin Ben Eliezer met Wednesday in Brussels, where Davutoglu was on a visit to discuss his country's EU membership bid, a Turkish official said. The talks "took place yesterday in Brussels upon a request by Israel," he told AFP on condition of anonymity.
"We had already conveyed a note to Israel explaining our expectations from them... Those expectations were repeated at the meeting," he said.
An official at the office of Israeli Prime Minister Benjamin Netanyahu confirmed that Ben Eliezer held talks Wednesday with "a Turkish official" but would not give other details.
It was the first meeting on a ministerial level since relations between the once-close allies plunged into deep crisis on May 31 when Israeli commandos raided a Turkish ship leading an aid flotilla to the Gaza Strip.
Eight Turks and a dual US-Turkish citizen were killed in the operation, which shattered bilateral ties, already strained since Israel's devastating war on Gaza last year
The United States has expressed concern over the deteriorating ties between the two countries.
The secret talks had been "meticulously prepared" in conjunction with Washington and with the involvement of Israeli Defence Minister Ehud Barak, Israel's military radio said.
Immediately after the raid, Ankara recalled its ambassador from Tel Aviv and cancelled three planned joint military exercises. It also denied permission twice to Israeli military aircraft to use its air space.


   Merkel left weakened after presidential humiliation
AFP, Berlin

German Chancellor Angela Merkel was left licking her wounds Thursday after rebels in her coalition turned the routine exercise of picking a president into a damaging debacle that left her bruised and weakened.
It took nine hours and three rounds of voting by a special assembly of MPs and public figures on Wednesday evening for Merkel's candidate Christian Wulff elected to the largely ceremonial post of head of state.
With Merkel's coalition holding a majority in the assembly, the election should have been a shoo-in in the first round, but a handful of rebels voted against Wulff in the secret ballot in a blow to the chancellor's authority.
Following these embarrassing and dramatic first two voting rounds, the nail-biting third became in effect a battle for the political future of Merkel, four times named the world's most powerful woman by Forbes Magazine.
"The double failure of Christian Wulff in the presidential vote has brought the Merkel government to the brink of collapse," wrote the left-leaning Frankfurter Rundschau daily.
Influential mass circulation Bild daily said that the vote debacle "could be the beginning of a gradual process of the government simply giving up."
"For Angela Merkel, Christian Wulff was her candidate. The fact he got no majority in the first two voting rounds calls into question her leadership ability as party leader," the paper wrote.
"Wulff's election is Merkel's defeat," said the daily Berliner Zeitung while Der Spiegel magazine said on its website it was her "biggest failure."
In his acceptance speech, the 51-year-old Wulff, a former leader of Lower Saxony, home to carmaker Volkswagen, made an appeal for unity after what the Tagesspiegel daily dubbed "the day of the long knives" for Merkel.
"We all need to take responsibility for our country," said Wulff, after a rousing standing ovation from Merkel's supporters in which the sense of relief was palpable.


  In shadow of spy case, Clinton in Russia backyard
AP, Washington

On the heels of a sensational Russian spy scandal, Hillary Rodham Clinton is making her first visit as secretary of state to four former Soviet states, each with a direct stake in the Obama administration's campaign to "reset" relations with the former U.S. Cold War foe.
Clinton was headed Thursday to Ukraine, to be followed by stops in the south Caucasus states of Azerbaijan, Armenia and Georgia. She also is scheduled to visit Poland, a NATO ally whose ties to Moscow have been marked by tensions throughout history. Clinton was delaying her departure slightly in order to bid farewell Thursday to Sen. Robert C. Byrd in the Senate chamber, where he will lie in state before being returned to his home in West Virginia for burial.
The trip was planned long before the Justice Department announced Monday that it had arrested 10 people fingered as covert intelligence agents of the Russian government. The case underscores lingering tensions with Russia at a time when the Obama administration is bragging about the diplomatic payoff from making a fresh start with Moscow 18 months ago.
Even trickier than the spy allegations, however, are the politics of U.S. relations with former Soviet republics like Georgia, which is still smarting from Russia's armed invasion in August 2008. The Obama administration is trying to strike a balance between pressing the Russians to withdraw their forces from the breakaway Georgian territories of South Ossetia and Abkhazia and persuading the Georgian government that building up its military is not the right solution.
"We don't think that arms sales and military equipment is the path to the situation in Georgia that we're trying to get to," said Philip Gordon, the State Department's top Russia policy official.


  Petraeus briefs NATO on Afghan mission
AP, Brussels

Gen. David Petraeus, NATO's newly appointed commander of the Afghanistan war, briefed alliance officials on Thursday about his plans for the escalating conflict. Officials said Petraeus meting with Secretary-General Anders Fogh Rasmussen and addressed the North Atlantic Council, the alliance's top decision-making body.
Petraeus will likely try to smooth ruffled feathers among European allies contributing troops to the 122,000-strong international force. Diplomats say member governments were not consulted about the changeover in command after President Barack Obama's sudden dismissal of Petraeus' predecessor, Gen. Stanley McChrystal.
Fogh Rasmussen found himself expressing support for McChrystal after the scornful remarks he made to Rolling Stone magazine, only to backtrack the following day and give his backing to Obama's decision to replace him with Petraeus.
U.S. troops account for most of the 122,000-strong international force in Afghanistan, while European and other allies make up about a third of the force.
The top U.S. general is also the commander of the entire NATO force.
McChrystal's sacking came amid growing disillusionment with the war in Europe, and a spate of bad news from the battlefields. Allied deaths have doubled in the first six months of this year, with June the deadliest month on record for NATO troops in the nine-year conflict.


  Strong earthquake hits southern Mexico, killing 1
AP, Mexico City

A strong earthquake rattled southern Mexico early Wednesday, killing at least one man who was crushed beneath a rafter that fell from his roof.
The magnitude-6.2 quake was felt as far north as Mexico City, where people fled homes and hotels in their pajamas. City officials reported no injuries or significant damage. The U.S. Geological Survey said the quake was centered in a sparsely populated, mountainous area of Oaxaca near the southern Pacific coast.
"It felt strong, very strong," said Tomas Herrera Sanchez, a police officer on duty in the town of Santiago Pinotepa Nacional, the closest sizable town to the quake's center. "There are people who got scared and left their houses."
Armando Lugo Hernandez, 49, was killed when a beam fell from his roof in the town of San Andres Huaxpaltepec near the epicenter, said Carlos Alberto Ramos, director of Oaxaca state Civil Protection. Ramos said officials were still trying to assess damages in the remote area, but did not believe it was extensive. The USGS said the quake hit at 2:22 a.m. local time (0722 GMT, 3:22 a.m. EDT) and it was centered about 80 miles (125 kilometers) west-southwest of Oaxaca city, the state capital. It initially estimated the magnitude at 6.5. The quake occurred at a depth of 12 miles (20 kilometers).


  Britain moves towards closer ties with UAE, India: Hague
AFP, London

Britain launched a "taskforce" with the United Arab Emirates Thursday to boost bilateral ties and premier David Cameron will seek a similar initiative with India in an upcoming visit, a minister said.
In a speech in London, Foreign Secretary William Hague said the UAE taskforce will hold its first meeting later Thursday as it seeks to strengthen ties "across the board", including in education, culture, trade and defence.
"I can announce today that the prime minister has launched a joint taskforce with the United Arab Emirates as part of our efforts to elevate links with the Gulf," Hague said in a keynote address on the new government's foreign policy.
He gave no details of who would be on the taskforce or what it would involve, but it is likely to to comprise senior officials from both sides, an official said on condition of anonymity.
Cameron visited Abu Dhabi earlier this month and after a meeting with President Sheikh Khalifa bin Zayed al-Nahayan he praised the "deep friendship" between the two countries based on a shared history and "common future".
"We are committed to strengthening our cooperation on defence and security, as long-standing friends with shared vital interests," said Cameron, who took office at the head of a Conservative-Liberal Democrat coalition in May.
On Thursday, Hague indicated that Britain would be seeking similar initiatives to the taskforce with other countries, including India, which he told the BBC the prime minister would be visiting in one month's time.
"We are actively exploring the scope for similar initiatives with other countries, including a visit by the prime minister to India to identify how we can forge a partnership for the 21st century," Hague said in his speech.
Foreign Office minister Jeremy Browne would also visit Latin America and Southeast Asia "shortly", and there would be a "renewed focus" on ties with Japan and the further development of Britain's partnership with China, he said.

   

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Business/Economy

US unveils new initiative to strengthen trade cooperation with India

PTI, Washington

The United States has unveiled a new initiative to strengthen commercial co-operation with India, which is aimed at benefiting from new emerging Indian metropolitans like Pune and Nagpur.
"The growth in emerging metropolitan sectors like Pune and Nagpur will accelerate and form new markets for US and Indian businesses," said the Under Secretary of Commerce for International Trade, Francisco S nchez.
"Developing the eco-nomies of these cities and states is critical as we work together as equal partners with mutual interests," he said at an event jointly hosted by the US-India Business Council and the Department of Commerce to announce the Growth in Emerging Metropolitan Sectors (GEMS) initiative of the United States.
"However, significant and productive the relationship between our national governments, this new appr-oach to these growing metropolitan areas can help sink deeper into the ground the pillars that already support our common US- India partnership," Sanchez said.
It is expected that nearly 600 million people would live in India's urban areas, with 68 Indian cities surpassing one million inhabitants in each of the next two decades.
The annual income of households in cities would grow from about USD 700 billion today and double every five years and reach almost USD 4 trillion in 20 years.
"If we can work together to harness the potential of these new areas of growth, we can grow the economies of both of our nations. This is a win-win situation," S nchez noted.
"These figures represent the changes we are witnessing in the world market and the potential for India's growth," he said in his speech on "Accelerating Inclusive Growth: The Future of the US-India Commercial Relationship."
With rapid economic development and a growing middle class, the Indian demand for US goods and services is increasing and bilateral trade is growing as a result, he added.
As part of President Obama's National Export Initiative - with the goal of doubling exports in the next five years - Commerce's International Trade Administration has targeted India as one of the most promising global markets, he said.
"The smaller and medium-sized cities of India are, indeed, gems. We want to showcase one of these gems at a conference in the fall when we will bring together representatives from local and state governments and from the infrastructure, energy, healthcare and retail sectors within and from outside India," Sanchez said.


 Tata to set up truck plant at Kishoreganj
BSS, New Delhi

The Tatas are planning to join hands with its car distributor in Bangladesh - Nitol Motors - for a truck plant at Kishoreganj near Dhaka.
The facility will manufacture 30,000-40,000 Ace pick-ups a year, a report published in today's edition of the Telegraph from Kolkata said. The analysts estimated such a manufacturing plant would cost about Rs. 1,000 crore.
"What we are looking at is a core plant at Kishoreganj near Dhaka around which an ancillary industry will grow up," Telegraph quoted Matlub Ahmed, chairman of Nitol Niloy Group, that owns Nitol Motors, as saying.
Ahmed said his company was looking to sell about 12,000 trucks in Bangladesh. The rest will be exported to India, Myanmar and countries where engineering goods from Bangladesh have duty free access such as Turkey and other European nations.
Nitol has a joint venture with the Tatas that assembles vehicles of the Indian company at Jessore. Nitol Motors sells about 700-800 Ace trucks a month in Bangladesh.
The proposed Kishoreganj plant will be a large set-up with a supporting auto ancillary hub capable of exporting vehicles to India.
While the details of the joint venture are not yet clear, the Tatas would possibly settle for a 50:50 joint venture with Nitol.
Nitol and Tata Motors are also studying the possibility of assembling Nanos in Bangladesh, but this "is not on the immediate radar," the Telegraph added. Earlier, Tata International had signed a deal with Nitol in April to make cycles for the global market.
Four years back, the Tata Group had pulled out of a proposed Rs 10,000-crore venture in Bangladesh to set up a steel mill, a fertiliser factory and a power plant.
Since then the Tatas along with other corporate entities have shown interest in the small but fast growing market of Bangladesh.
The Telegraph further said, Bangladesh, which grew at a 6.2 per cent rate last year, has a per capita income of $ 750 and exports goods worth $15.91 billion annually, mostly to the US, European Union and Japan. India's annual exports to Bangladesh are valued at $3.375 billion, while it imports worth a mere $358 million, Telegraph reported.


  Walton again reduces prices of refrigerator, motorcycle
TBT Economy Desk

Walton, the country's leading electrical, electronics and automobile manufacturing and marketing brand, has reduced the prices of Walton brand refrigerators and motorcycles considering the purchasing capacity of local customers.
The company reduced the prices after announcement of the national budget for the fiscal year 2010-2011.
The comapny also took the decision that from now after every three-month the compny would announce price discount for its branded products.
Under the price discount offer, from now, all the showrooms of Dhaka city, other metropolitan cities and district towns countrywide will reduce price from Tk 500 to Tk 1000 for every Walton brand product. And this offer will continue until the next announcement, sources in the company said.
The budget announcement mostly increases prices of products especially electronics products in our country every year. This year many companies have also increased the prices of their products that are now out of the reach of common people, but Walton did not increase prices rather than it has reduced prices, sources said. About the price reduction, Walton Director (International Marketing) Mijanur Rahman said: "Most of the people in our country have low capacity to buy the luxurious essential products, but prices of those products have been increasing day by day. Many companies don't consider the common people, and they have a tendency to try how to earn more profit in the business. But, Walton does not only want to make profit but also want to increase sales through serving the countrymen".
He also said: "Walton wants to know countrymen as a fast-growing business house in Bangladesh Walton are now locally manufacturing world standard quality products that also being exported to the different countries of the world. Walton always tries to reach their products to the countrymen at competitive prices and offer different facilities like after-sales- service, warranty service, home service, etc. This price reduction is also one of their efforts to benefit the local customers".
Mijanur Rahman pointed out that considering the purchase capacity of local customers the company had reduced the prices although production costs of the products were in previous increased rates. If the government takes different initiatives to flourish local heavy industries they will be able to provide more facilities and competitive rates to the local customers, he opined. This initiative to decrease price can be appreciated in the backdrop of electronics market situation in the country where taking any opportunity many companies increase prices, the Walton official also claimed.
It can be here maintioned that Walton announces special price reduction offers and facilities for its customers on the occasion of all most festivals and siginificant events every year. On the occasion of Dhaka International Trade Fair this year, Walton offered huge price discount. Then a LCD Walton television of Tk 32,000 was sold in a Tk 10, 000 less at only Tk 24,000 while another LCD Walton brand was sold at Tk 44,900 instead of Tk 65,000.


  India central bank warns on global double-dip recession
AFP, Mumbai

Global policymakers must tread carefully to avert a double-dip recession, a report by India's central bank analysis wing warned Thursday. "Policymakers will need to devise a calibrated exit balancing growth and inflation, the bank said in its Report on Currency and Finance. Countries should co-ordinate their exit strategies from easy fiscal and monetary policies put in place to spur economic growth, it said.
The comments came after India's Prime Minister Manmohan Singh urged G20 leaders last weekend in Toronto that priority be given to "consolidating the recovery" and warned of a worldwide double-dip recession if countries cut government spending too fast.
The Reserve Bank of India report called it a "challenging task" for policymakers to develop "credible and coherent exit strategies to roll back crisis interventions."
The report added that policymakers must also resist imposing protectionist measures to safeguard their domestic economies.
US President Barack Obama has pushed for economic stimulus to continue until global recovery is assured while Germany and Britain are opting for fiscal austerity.
The G20 summit pledged to shore up fragile economic recovery while agreeing to clean up debt-laden public finances.
Deputy Governor Subir Gokarn said India's central bank was keeping a close eye on the European debt crisis in formulating its own policies.
"We're clearly watching those developments in the context of our policy making," Gokarn said. The report added sustained economic recovery will involve strengthening the regulatory and legal framework governing global financial institutions to avoid another investment bank-triggered crisis.


  Japan’s business confidence highest in two years
AFP, Tokyo

Japanese business confidence has reached its highest level in two years, as the world's number two economy continues to recover from its worst slump in decades, the Bank of Japan said Thursday.
The index of sentiment among major manufacturers rose for a fifth straight quarter to one point in June from minus 14 in March, according to the central bank's closely watched Tankan survey of more than 11,000 firms.
The reading means that optimists outweigh pessimists among major manufacturers in terms of their view of Japan's economic climate for the first time since June 2008, beating analyst forecasts of a reading of minus 4.
The June survey signals an increasingly upbeat mood, with companies predicting surging profits while planning to raise spending on plants and equipment, likely boosting an economy struggling for sustainable growth.
The data will be welcomed by Prime Minister Naoto Kan's government ahead of elections this month as it puts fiscal discipline at the core of its agenda to repair Japan's tattered finances and slash the world's biggest public debt.
Exports have driven the country's recovery from recession but recent data showed the domestic picture remains weak, with unemployment surprising economists by edging higher in May to 5.2 percent, missing expectations.


  Farm spending in rich countries rises in 2009: OECD
AFP, Paris

Government support spending for farmers rose slightly in the world's leading industrialised countries last year, the OECD said Thursday, as it called for a cut in subsidies that distort markets. The Organisation for Economic Cooperation and Development said in a report that government support to agriculture was worth 252.5 billion dollars (203 billion euros) in 2009, or 22 percent of total farm receipts in the 31 OECD members. The 2009 figured compared with 21 percent in 2008 and 22 percent in 2007.
Official financial aid to farmers rose to 10 percent of total farm receipts in the United States in 2009 from 8.0 percent the previous year while in Europe the gain was from 22 to 24 percent.
In Australia, according to the OECD, the overall share of government support to farners was reduced following an end to special payments in connection with the restructuring of the dairy industry.
The report found that "with public budgets under pressure in the wake of the economic crisis, governments need to reassess and adapt their farm support policies to meet specific economic, social and environmental objectives."
"Policy makers should reduce subsidies which distort markets and cut the link between government payments and agricultural production."


  India’s car makers see surge in sales
AFP, Mumbai

India's carmakers said on Thursday that sales for the month of June were strong, underscoring consumer demand and industrial growth in Asia's third-largest economy.
India's top carmaker Maruti Suzuki said sales jumped 17 percent last month compared with the same period a year ago while Ford India, Tata Motors and General Motors all also reported a sharp surge. Car sales in India had tumbled in 2008, hit by higher loan costs and fears of job cuts amid the global financial crisis. But government stimulus steps and an economic turn-around led to a recovery in the sector in 2009.
And analysts see sales remaining strong as the economy picks up pace.
"There was pent-up demand for cars which has overflowed into this year," said Mahantesh Sabarad, senior analyst at Fortune Equity Brokers.
India's economy has expanded by 8.6 percent year-on-year in the most recent financial quarter and Indian banks are still lending readily. However, carmakers are hiking the price of their vehicles to compensate for the increased cost of raw materials such as steel and rubber, while the government also announced rises in the price of petrol and diesel last week. Japanese-owned Maruti Suzuki India said it sold 88,091 vehicles in June, up from 85,109 the same month a year ago but down from a record 102,175 units in May, a fall attributed partly to a plant maintenance shutdown.
Low automobile pen-etration in India, where many consumers are buying their first cars, is expected to keep the market solidly unde-pinned and make the nation a lucrative destination for global automakers in coming years.


  Risk aversion clouds global economy
AFP, London

Fears for the global economy resurfaced on Thursday with stocks falling on worries about a deadline for European banks to repay record loans of 442 billion euros, Chinese data and Spanish debt.
Markets worldwide showed the strain of more poor economic data, just days after G20 world leaders vowed in Toronto to slash state debt and nurture a shaky rebound.
European equities were down from the open, as London lost 1.27 percent, Frankfurt fell 1.07 percent and Paris shed 1.95 percent. In Asia Tokyo closed down 2.04 percent to reach its lowest level since November.
The European Central Bank made unexpectedly big special loans to help banks pay off the record one-year borrowing just before Thursday's deadline to repay the 442 billion euros, with Eurozone banks asking for 111.2 billion euros (136.7 billion dollars) in six-day loans.
In all 78 banks asked for funds, a day after 171 banks borrowed 131.9 billion euros for three months in an operation that initially eased market worries over a credit squeeze that might hamper a eurozone economic recovery. Attention will now turn to the release later this month of bank stress tests designed to determine if they can withstand exceptional shocks like defaults by major borrowers.
The loans have added to wider fears for the health of the eurozone, battered by Greece's debt woes and the threat of contagion to other European Union nations.
Madrid tumbled by more than 3.0 percent after international ratings agency Moody's put Spanish government debt on review for a possible downgrade late on Wednesday.
The Madrid market clawed back ground later on Thursday to show a loss of 1.8 percent, after a successful debt bond placing of 3.5 billion euros for five years.
The ripples were felt across world markets.
"The FTSE opened in desperate fashion this morning on the news that China's manufacturing growth has slowed and Spain's sovereign debt problems have intensified," said IG Index senior sales trader Yusuf Heusen.


  South Korea reports record trade surplus
AFP, Seoul

South Korea recorded its largest-ever trade surplus of 7.472 billion dollars in June thanks to healthy overseas demand, official figures showed Thursday.
Exports rose 32.4 percent from a year earlier to 42.653 billion dollars while imports increased 36.9 percent to 35.181 billion, according to preliminary trade data released by the Ministry of Knowledge Economy.
The previous record surplus was 6.5 billion dollars in June 2009. The figure is the latest in a series of strong economic data for Asia's fourth largest economy, and will fuel expectations of an imminent rise in the key interest rate from its current record low 2 percent.
"A surge in overseas demand for semiconductors and automobiles cont-ributed to the unpr-ecedented export and trade balance figures," said An Byung-Hwa, head of the ministry's export-import division. An, quoted by Yonhap news agency, said exports of semiconductors jumped 97.3 percent year-on-year and automobiles gained 57.7 percent.n
An said a sharp rise in shipments to China and developing economies fuelled the gains last month, although exports to the United States, Japan and the European Union also rose compared to June 2009.
The ministry report forecast a trade surplus of 18.94 billion dollars in the first half, with exports gaining 35.0 percent on-year to 222.45 billion and imports rising 40.0 percent to 203.50 billion.


  Romania to cut 54,000 public sector jobs
AFP, Bucharest

Romania is to cut 54,000 jobs in the public sector in a move to curb its public deficit, the centre-right government announced on Thursday.
"53,432 jobs will have to be cut in local administrations", Interior Minister Vasile Blaga said after a cabinet meeting.
"We set up the legal frame of restructuring in the public sector. New job cuts could follow as a consequence of this process", the government spokeswoman Ioana Muntean told AFP.
The move is part of the government's measures to keep the public deficit near the target of 6.8 percent of the gross domestic product (GDP) stipulated in an agreement with the International Monetary Fund (IMF) and the European Union.
It comes on top of a 25-percent slash of salaries in the public sector and a raise of the value-added tax to 24 percent from 19 percent decided in the last weeks.
The IMF board will meet on Friday to decide on a new tranche of the 20-billion-euro loan package it extended to Romania, together with the EU and the World Bank, in order to fight the economic crisis.


  Brazil retail sales flag during World Cup fever
AFP, Rio De Janeiro

World Cup fever has taken a toll on Brazilian retailers, who complain that cust-omers disappear and profits nosedive whenever the home football team plays in South Africa, store owners said Wednesday.
In Rio de Janeiro, store owners reported a 50 percent drop in business when Brazil's team is playing.
If the game falls on the weekend, like the upcoming quarter-finals match Friday between Brazil and the Netherlands, it's even worse.
If Brazil wins, store owners said they don't expect business to pick up until Monday.
"Stores close up earlier and stay closed. Only shopping malls reopen (after the match), and even there business is slack," Rio de Janeiro Store Directors' Club president Aldo Goncalvez told Agencia Brazil news agency.


  India auction of oil, gas blocks fetches $1.1b
AFP, New Delhi

Companies have committed 1.1 billion dollars to explore for oil and gas in India's latest energy auction round, a statement said Wednesday, but the sum was shy of government hopes.
However, the government said it expects a much more enthusiastic response in its next auction thanks to a decision last week to allow petrol prices to be set by the market rather than the state.
India, which imports 75 percent of its crude needs, is seeking to increase explor-ation for natural resources in a bid to ease its reliance on foreign supplies and meet the needs of its fast-growing economy.
Some 1.1 billion dollars in investment were committed by a total of 20 companies to the hunt for oil and gas in 31 exploration blocks, the government said in a statement. But India had put 70 blocks up for offer in the eighth round of the New Exploration Licensing Policy (NELP), launched in 1999 to accelerate the development of India's energy resources.
"Considering the (weak) global economic situation, the committed investment of 1.1 billion dollars... by these companies is notable," Petroleum Minister Murli Deora said in the statement.
The auction received a weak response from global energy giants with most blocks awarded to local companies such as state-owned Oil and Natural Gas Corp. Cairn India, a unit of Britain's Cairn Energy Plc, won two blocks.
In a bid to spur more interest, the government said it would move to a new Open Acreage Licensing Policy (OALP) under which oil firms can choose the energy blocks they want to explore without waiting for the government to put them on offer. Companies will be able to select any area they wish to explore for oil and gas and approach the government, which will put it on offer.

  

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National

Govt fails to achieve rice procurement target this year
UNB, Dhaka

The government has failed to achieve the target of rice procurement from the local markets this year.
"We signed agreements with rice millers to procure 500,000 metric tons of rice this year at Tk 25 per kg. But we could procure only 260,000 tons from them because of sudden price-hike of rice in local markets," Food and Disaster Management Minister Dr Abdur Razzaque said at a press briefing Thursday afternoon. The briefing was held at the Food Ministry after the minister attended a meeting of the Food Planning and Monitoring Committee (EPMC).
About the government initiative to ensure food grain reserve, the Food Minister said at present, the government has a stock of 600,000 tons of food grains, including 450,000 tons rice, in government godowns.
The government has already planned to import wheat to ensure country' s food reserve, he said.
The government has already procured around 100,000 tons of wheat from India, he said, adding: "We hope they will send more wheat to Bangladesh in near future."
Dr Razzaque said the rice price has been gradually increasing in the international market. As such, it would be very difficult to reduce rice price in the local market.
He said the government has decided to provide from today (Thursday) an incentive of Tk 3 on per kg of rice if the rice millers supply rice to the government as per earlier agreement.
The Food Minister said that although the government distributed rice under social safety net programs including as Test Relief (TR) and Food for Work last year, it has a plan to distribute wheat under such safety net programs this year due to shortage of rice.
He also informed that the government has enough capacity to control the price of food grains in the local markets.


  Disabled women for mainstreaming and access to equitable justice

BSS, Rajshahi

Disabled women at a press conference in Rajshahi on Thursday called for mainstreaming them and access to equitable justice for ensuring their dignified position in the society. They mentioned that most of the disabled women are being subjected to repression and exploitation by their surrounding influential and privileged groups due to their vulnerable physical and social condition.
However, they added that the repressed women, in many cases, have not access to the legal support. Local unit of Protibandhi Nari Adhiker Bikash Sangstha (PNABS) organized the press conference at Sadharan Public Library. Disability Rights Fund supported the programme.
PNABS Legal Secretary Rakhi Khatun read out the written statement narrating the inadequacies, deprivations and problems of the disabled women side by side with their grim picture in the society.
Chaired by PNABS President Nur Jahan Akter Jharna the press conference was addressed, among others, by General Secretary of PNABS Rozina Akhter, Area Coordinator of Action on Disability and Development (ADD) Monwarul Islam Mamun, ADD Human Rights Promoter Israt Laila Illa, Organizing Secretary of District Badhan Protibandhi Sangstha Asaduzzaman Russel and PNABS Volunteer Pankaj Chowdhury.
The speakers said emphasis should be given on working for establishing human rights, empowerment and positive social change of the disabled women.
Referring to poverty alleviation through involving the disabled women in various income- generating activities, the speakers said the disadvantaged group must be brought under the government-sponsored development programmes to enable them live a decent life.
Besides, they also underlined the need for ensuring their legitimate rights including education, health, employment, development, empowerment and social security so that they could contribute to the nation building process. They, however, underlined the need for a concerted effort to establish a sound and friendly atmosphere for the disabled persons to ensure a dignified position for them in society.


  BADC imparts training to farmers on irrigation in Gaibandha
BSS, Gaibandha

A total of 660 farmers of the district were imparted training on overall irrigation management particularly Alternate Wetting and Drying (AWD) method by BADC under its programmes in last fiscal year.
The aim of the training was to give ideas about proper irrigation management, to motivate the farmers to use surface water of various water bodies as irrigation and to popularize the AWD method locally known 'Magic Pipe' to them to boost production of crops mainly Boro paddy through saving the fuel cost of irrigation.
Of the total, some 450 farmers received training under Gaibandha District Minor Irrigation Development Programme while some 210 farmers took the training under Monga Pilot Project of the corporation in batches through out the fiscal.
Executive Engineer of BADC M Rafiqul Islam, Assistant Engineer M Nurul Alam, Upazila Agriculture Officers, Upazila Agriculture Engineers, and Assistant Directors of BADC (Seed) conducted the training sessions as resource persons.
Concerned UNOs formally inaugurated the training at their upazila headquarters as the chief guests.
Talking to the BSS, Executive Engineer M Rafiqul Islam said various workshops on irrigation and AWD method were also held at upazila and district level under the programmes during the period.
A larger number of upazila and district level officials, farmers' representatives, farm managers and Krishak League leaders and journalists took part in the workshops, he also said.


   Public representatives urged to formulate UP budget with participation of all

BSS, Gaibandha

Speakers at a workshop in Gaibandha on Wednesday urged the public representatives to formulate their union parishad (UP) budget openly through ensuring the participation of all including the poor to make the UP more active, functional and acceptable to the people.
"Every year the UP formulates a budget, but the people of the are don't have any ideas about it, even they don't know when, why and for whom the budget is formulated. If the people are involved in the budget and other working plans of the UP, it can play a vital role to lead the union and its people towards development," they said.
They were addressing the workshop on 'Plan and budget of UP' organized by Sadullapur Upazila Parishad in its hall room in the district in cooperation with a reputed organization RDRS Bangladesh. Upazila Parishad Chairman SM Khademul Islam Khudi attended the function and addressed it as the chief guest and upazila vice chairmen Sadek Ali Pramanik and Akter Banu Lucky were present as the special guests.
The ke-ynote paper on the subject was presented by project manager of the organization Tapan Kumar Saha.
Presided over by Upazila Nirbahi Officer M. Ariful Haque, the workshop was also addressed, among others, by field coordinator of RDRS Bangladesh KM Rashedul Arefin, Technical Officer Nazrul Islam, Bangram UP Chairman Fazlul Kaiyum Huda and Jamalpur UP Chairman Rabiul Karim Dula, UP Secretary Abdul Latif Mondal. Urging the UP chairmen and members to display their UP budget in the billboards at important places of the respective unions to ensure their transparency and accountabilities to the public Upazila Parishad Chairman SM Khademul Islam Khudi in his speech sought cooperation of the NGOs working in the upazila to create much awareness among the people at the grassroots level about UP budget and their active participation in it. All of the eleven UP chairmen, members and secretaries, upazila level officials, NGO activists and the local elite including journalists took part in the workshop.


   Govt takes elaborate programme to observe mourning day on Aug 15

BSS, Dhaka

The government has chalked out various programmes to observe the 35th martyrdom anniversary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and National Mourning Day on August 15 in a befitting manner.
The programme was finalised at an inter-ministerial meeting at the Cabinet Division, said an official release Thursday.
As per the programme, the national flag would be hoisted half-mast as the sun rises on August 15 at government, semi-government and autonomous organisations, educational institutions and private buildings.
The national flag would also be hoisted half-mast and discussion meeting held at the Bangladesh Missions abroad.
The President and Prime Minister will place wreaths at the portrait of Bangabandhu at Dhanmondi Bangabandhu Memorial Museum at 6:30 am on the day. The armed forces will present a guard of honour and a special 'munajat' will be offered.
The Prime Minister will place wreaths at the graves of the family members of Father of the Nation and other martyrs at Banani graveyard at 7:30 am.
She will place wreaths at the grave of Father of the Nation at Tungipara at 10 am. The armed forces will present a guard of honour and a special munajat will be offered.
Milad mahfils and munajats after Johr prayers will be held in mosques while other prayers in temples, churches and other places of worships on the day.


   ABM Nur Uz Zaman appointed ambassador to Libya
UNB, Dhaka

The Government has decided to appoint former secretary ABM Nur Uz Zaman as the next Ambassador of Bangladesh to Libya.
ABM Nur Uz Zaman belongs to the 1981 batch of BCS (Information) Cadre. During his distinguished career, he has served in different Ministries of the Government of Bangladesh in various capacities, said a press release.
He was counsellor (Political), Bangladesh Embassy, Berlin from 1999 to 2003 and held various positions in the Ministry of Foreign Affairs, Dhaka on deputation from 1995 to 1999. He attended a number of international conferences and seminars during his notable career.
He holds a Post-graduate degree in Economics from the University of Dhaka. He is married and blessed with one daughter.


   Budget of Melandaha Pourasabha announced
BSS, Jamalpur

The budget of Melandaha Pourasabha for the fiscal 2010-2011 was announced on Wednesday.
Haji Didar Pasha, mayor of the pourasabha, announced the Taka 35 crore 91 lakh 89 thousand and 466 budget at a function in the pourasabha auditorium.
In the budget, Taka one crore 25 lakh 62 thousand and 139 was shown as income and Taka one crore 23 lakh 50 thousand and 120 as expenditure.
The highest Taka 16.10 crore has been allocated for the health service, Taka six crore for water supply, Taka 5.60 core for upazila town infrastructure, Taka 3.91 crore for BMDF project, Taka 1.32 crore for flood and rehabilitation project and Tk. 1.69 crore for road construction and repairing.
Councilors and employees of the pourasabha and local elite were present at the function.


   Bangladesh Foreign Policy for inclusiveness, people’s representation : FS

UNB, Dhaka

Foreign Secretary Mijarul Quayes said Bangladesh foreign policy strives for promotion of democracy, inclusiveness and human rights.
He stated this at a discussion on "Bangladesh Foreign Policy:
Challenges and Opportunities" at the Heritage Foundation in Washington DC .
The discussion drew a good number of State Department Officials, Capitol Hill staff, members of think tanks, academia, press, trade and investment executives, according to a release of the Foreign Ministry.
Ambassador Quayes said while the government pursues a foreign policy that ascribes equal space for bilateral as well as multilateral diplomacy, Bangladesh 's natural niche has been on the multilateral front.
He said Bangladesh has, over the years, evolved not only as a responsible member in the community of nations, it has earned her place as a "contributing" country.
Recalling Bangladesh as the largest troop contributing country in the UN peacekeeping missions, the Foreign Secretary expressed the hope for a "peace building" role of Bangladesh in near future from present "peacekeeping" role.
Quayes touched on the developments in the South Asia region including the Prime Minister's visit to India. About the conflicts in South Asia, he emphasized on the need for action to stem the spread of extremist tendencies. He narrated the elements of paradigm shift in Bangladesh-India relations for the common good of the peoples of both the countries. Elaborating Bangladesh's renewed effort for a regional connectivity, Quayes expressed his satisfaction at the support Bangladesh is receiving regionally as well as globally.
About Bangladesh's impressive win in the CEDAW election with highest number of vote, the Foreign Secretary said that Bangladesh 's good works both at bilateral as well as multilateral level, are not going unnoticed. He assured the audience that Bangladesh shall continue her effort for a peaceful world through active processes and dialogue with the actors at the regional and global level.
Quayes described the existing relations between Bangladesh and the US as "excellent" and commented that there is scope for further cooperation in a host of areas. He drew attention to the high US tariff on the ready made garment exports to the US market and underscored the need for urgent action to remove such impediments to RMG export.
Quayes elaborated on how 16-32% tariff penalty squeeze the space for manufactures for value addition through better wages and incentives. He argued that any tariff relief will eventually help improving wage structure of the workers in Bangladesh .
Walter Lohman, Director for Heritage's Asia Program moderated the event. Bangladesh Ambassador to USA Akramul Qader and other Embassy officials were also present in the event.


   Int'l Bangla festival to be held in USA today
UNB, Dhaka

A 4-day international Bangla festival-2010 and book fair will begin in New York today (Friday).
Information Secretary Dr Kamal Abdul Naser Chowdhury will attend the occasion, organized by Muktadhara Foundation, USA, as special guest.
Muktadhara has been organizing the festival in New York since last 18 years for growth of Bangla language and culture.
A large number of poets, artistes and intellectuals from Indian West Bengal State and Bangladesh participate in the festival every year.
Fifteen publication institutions and 30 handicrafts institutions from West Bengal and Bangladesh are expected to display their products and books in the fair.


   Sec l44 imposed in Daudkandi upazila of Comilla
UNB, Comilla

Local administration on Wednesday night imposed section l44 at Tolplaza in Daudkandi upazila where local BNP and Awami League called meetings at the same time on Thursday afternoon.
Police said, first the main opposition BNP called a meeting at 3pm on Thursday at Tolplaza in the upazila headquarters.
Later, Awami League also called meeting at the same time at the same venue, creating tension over the area.
The upazila administration imposed sec l44 at the area from Wednesday night to Thursday night, banning any public meeting, procession, rallies or gathering of more than four people during that period to avert any untoward incident.


   Theatre workshop on technical issues
UNB, Dhaka

A five-day national level training workshop begins at National Theatre Auditorium in Dhaka on July 3 for technical skill development of the theatre professionals.
Theatre Designers Institute, Bangladesh Shilpakala Academy and the Embassy of Switzerland are jointly organising the workshop, a release of the Swiss Embassy said Thursday.
Jan Lukas, internationally renowned theatre activist and technical director of popular Swiss theatre group 'Mummenschanz', will conduct the training workshop.
The Swiss theatre group Mummenschanz visited Dhaka last March to perform at the International Theatre Festival organised by Dhaka Padatik. Gabriele Derighetti, Charge d'affaires, Embassy of Switzerland and Ms. Saraara Mahmud, Director, Bangladesh Shilpakola Academy will be present at the opening session.
18 young and talented theatre set designers coming from different parts of this country are participating in this workshop.
The workshop creates an opportunity for theatre designers of Bangladesh to understand and develop their skills regarding different theatrical techniques, scenography and set designing, to enrich their knowledge on light designing and modern light equipment and also to share experiences.

  

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Sports

Brazil and Netherlands meet today
AFP, Port Elizabeth

Brazil, without suspended Ramires and injured Elano, face the Netherlands here on Friday for the fourth time at a World Cup in what promises to be an explosive quarter-final.
In 1994 Brazil overcame the Dutch 3-2 at the same stage of the competition before going on to win the title. Four years later in France the Oranje lost out again, 4-2 on penalties after drawing their semi-final 1-1. They first met in 1974, with the European side prevailing 2-0.
The Netherlands are in arguably better shape than they have ever been to exact revenge on their arch nemesis at the Nelson Mandela Bay stadium and extend their unbeaten record in South Africa to five games. Bert van Marwijk's men are seeking to be crowned champions at the ninth attempt, after falling at the final hurdle twice - in 1974 and 1978.
Van Marwijk, appointed after Euro 2008 when Holland excelled in the 'Group of Death' only to run out of steam against Russia, has claimed his team are the "underdogs". "Brazil are a very mature and stable team. "They convey a positive form of arrogance, that others cannot win. We might be the underdogs against Brazil, for the first time in this World Cup," he said.
Holland's previous international outings have often been marked by discord in the camp, sometimes along racial lines, but one of the hallmarks of the 2010 squad has been its harmony. That unity was briefly threatened by an outburst from Robin van Persie who when he was taken off during Monday's last 16 win over Slovakia reportedly said "it is not me that should be substituted but Wesley Sneijder".
Van Persie later denied that he had mentioned Sneijder, but just to be on the safe side van Maarwijk held clear the air talks between the pair, with Sneijder later insisting nothing had happened. Dunga's Brazil meanwhile are aiming to become the first of what could be an all-South American cast list for the semi-finals.
The Selecao are seemingly coming to the boil at just the right time judged on their 3-0 last 16 rout of Chile, one of the most attractive sides at these finals. Goals from Juan, Luis Fabiano and Robinho put Brazil into the last eight with a record of three wins and a drab draw with Portugal in Durban.
Brazil suffered a shock quarter-final defeat to eventual beaten finalists France in Germany in 2006, and are anxious to atone for that reverse as they seek a sixth world crown. Gilberto Silva said: "I believe we can win (the title)." Turning to the upcoming test against Holland the former Arsenal midfielder added: "We know that if we give them space it will be very difficult for us and we could have a problem."
Dunga, under enormous pressure to deliver the title, has the utmost respect for Friday's opposition. In midfield Dunga is without Ramires, suspended after picking up a second booking against Chile. Elano, who has scored twice, is also out with the ankle injury he suffered against the Ivory Coast.
Felipe Melo is also carrying an ankle injury and faces a race against time to take Ramires' place on the left. Kaka is one of three Brazilians and no fewer than seven Dutch who will miss an eventual semi-final should they receive a second yellow card.


  Argentina and Germany reignite intense rivalry
AFP, Cape Town

Football powerhouses Argentina and Germany reignite their intense rivalry on Saturday in an eagerly-anticipated World Cup quarter-final, with both sides boasting they will win.
The two countries met at the same stage in 2006 with Juergen Klinsmann's side going through 4-2 on penalties after over-cautious counterpart Jose Pekerman left Lionel Messi on the bench.
That shootout ended in a brawl when the South Americans reacted angrily after German goalkeeper Jens Lehmann saved Esteban Cambiasso's spot-kick to confirm victory.
The coaches are different now but the desire of both teams to get their hands on the World Cup again hasn't changed. Argentina lifted the trophy in 1978 and 1986 while the Germans have won three times, in 1954, 1974, and 1990.
Their rivalry stretches back a long way, with the Argentines beating Germany in the 1986 final before losing to them in the 1990 decider, games that featured Diego Maradona.
Now coach, the former midfield maestro is confident his team can counter the current German threat, despite them being high on confidence after crushing old enemy England 4-1 in the round of 16.
Argentina, along with the Netherlands, are the only countries left with a 100 percent record after comfortably beating Nigeria, Greece and South Korea before ending Mexican dreams.
In-form Manchester City striker Carlos Tevez said they do not fear consistent Germany, who have not failed to reach the last eight since 1938.
The Germans will have Chancellor Angela Merkel, a keen football fan, in Green Point Stadium watching the match and coach Joachim Loew is hoping his young team can impress her by riding the wave of beating England.
While Argentina have been unbeatable in South Africa, Loew said he had identified weaknesses, without revealing what they were.
World Cup head-to-head record for Argentina and Germany before quarter-final in Cape Town Saturday
1958
First round
At Malmo, Sweden
Germany 3 Argentina 1
1966
First round
At Birmingham, England
Argentina 0 Germany 0
1986
Final
At Mexico City
Argentina 3 Germany 2
1990
Final
At Rome
Germany 1 Argentina 0
2006
Quarter-final
At Berlin
Germany 1 Argentina 1 aet
Germany won 4-2 on penalties


   Focussed Spain wary of Paraguay threat
AFP, Johannesburg

Spain will be wary when they face Paraguay on Saturday in Johannesburg's Ellis Park stadium of not making the same mistakes as in the past.
Until two years ago when the Spanish finally delivered on their undoubted promise by winning the European Championships, they had been known as the perennial chokers, or underachievers. Such was the bemusement and indeed amusement in some quarters at Spain's repeated inability to turn potential into achievement, that the term "perennial underachievers" actually seemed to have become a permanent prefix to the word Spain. That was finally disbanded two years ago in Vienna when they beat Germany 1-0 to lift the European title and coming into this competition Spain were seen as joint-favourites alongside Brazil. But not all lessons had been learned as the Iberians stumbled in their opening group match and were beaten 1-0 by Switzerland.
That seemed to focus minds, though, and the Spanish regrouped and rediscovered their form to move ominously into the last eight.


  Uruguay and Ghana chase last four dream
AFP, Johannesburg

One-time football power Uruguay are on the verge of their first World Cup semi-final appearance in 40 years with African hope Ghana blocking their way at Soccer City here on Friday.
Before Brazil and Argentina, Uruguay were the dominant South American team winning two World Cups in 1930 and 1950, two Olympic Games gold medals and eight of their 14 Copa America titles.
La Celeste's World Cup fortunes have been in decline since their seismic 2-1 upset of Brazil in the 1950 final before 174,000 fans at the Maracana Stadium, Rio de Janeiro.
Uruguay reached the semi-finals in 1954 and 1970, but on Friday Oscar Tabarez's team get their chance to reach the last four after a break of four decades. Ghana, with all of Africa behind them, are out to create history of their own, but Uruguay are surfing the wave of South American success at South Africa 2010. They have won three of their four matches after an opening scoreless draw with France and in Luis Suarez and Diego Forlan Uruguay possess two of the most potent forwards in the tournament, while the defence, marshalled by skipper Diego Lugano, has only conceded one goal.
Ajax striker Suarez's curling right-footer in the 80th minute of Saturday's last 16 match with South Korea earned Uruguay a last-eight spot, and also netted him the man of the match award.
Forlan hopes the strong South American presence in the quarter-finals will encourage FIFA to revisit their quota of finals places rather than force the fifth team in the regional qualifiers to play off against a Central American side. Uruguay had to overcome Costa Rica to reach the finals.
"We have to show how strong South American football is and the strength of the qualifying programme. I hope in doing so we can have five places and not the current four-and-a-half for the next World Cup in Brazil," Forlan said.
Tabarez has already finalised his team replacing defender Diego Godin and midfielder Alvaro Pereira with Mauricio Victorino and Alvaro Fernandez.
"Before we began this World Cup, we saw this great harmony among the players and I said to them, 'The people back home have aspirations, they have dreams and we have to deliver them'," Tabarez said. "Our objective is to go as far as we can in this tournament."
Ghana are bidding to become the first African nation to reach the semi-finals of the World Cup.


  Pele takes another swipe at Maradona
AFP, Berlin

Brazilian footballing legend Pele's war of words with Argentina coach Diego Maradona continued on Thursday as he said the latter was not a good coach because of the troubled private life he had led.
Pele, who earlier during the World Cup finals said that Maradona had only taken the Argentinian coaching job because he needed the money, said Maradona's previous troubles - which included treatment for a cocaine addiction - could only have a bad effect on the team. Argentina - who have won all four of their matches at the World Cup finals thusfar - face an impressive German side in Saturday's quarter-final in Cape Town.
"He (Maradona) is not a good coach, because he had a bizarre lifestyle which cannot go down well with his team," three-time World Cup winner Pele told German magazine 11Fre-unde.
By contrast the 69-year-old Pele said there was much to like about the young and vibrant German side that destroyed England 4-1 in their Last 16 match last Sunday.
"This young German team is a pleasure to watch," he said.
"It is clear to see that something has changed in German football, it was already beginning to happen at Euro 2008 (where they lost 1-0 to Spain in the final) and the youngsters Mesut Ozil and Thomas Mueller, they are like their predecessors Wolfgang Overath and Pierre Littbarski.
"They can dribble, deliver pinpoint passes, and produce something surprising at any moment," added Pele, who nevertheless feels that they are too young to win at this World Cup.


  Spanish see stats speaking for success
AFP, Potchefstroom

There is far more to the beautiful game than facts and figures, yet the statistics are starting to speak for Spain ahead of their World Cup quarter-final against Paraguay.
Even a shock opening loss to Switzerland has not shaken the Spanish out of their stride and their solidity at the back, their mercurial midfield which ensures a lion's share of possession and the form of David Villa in attack are factors which can take them all the way, says coach Vicente Del Bosque.
"We controlled the game well, we kept the ball, we had depth and defensive solidity," said Del Bosque as he looked back at a second-round win over Portugal which saw rival dangerman Cristiano Ronaldo stifled. With Xabi Alonso and Sergio Bus-quets shielding the back four and feeding the creative midfield motors of Xavi Hernandez and Andres Iniesta, and with Villa on top of his game - even if strike partner Ferhnando Torres is not as yet firing on all cyclinders - it is difficult to get the ball off the Spanish. Against the Portuguese they had 61 percent of possession and over their four games to date their ball-retaining skills have meant that their overall possession extended to 139 minutes - compared with 121 for Brazil and 118 for Argentina.
Successful completion of passes also speaks for Spain at 81 percent - though they will still note that no European side has won the trophy outside of Europe to date and even if the South American contingent this year looks more daunting than ever.
Although critics will point to 19 chances only yielding Villa's solitary strike, the sheer volume of ammunition is almost guaranteed given further statistics such as Xavi's 296 passes in four games.


  Port Elizabeth in the pink as Brazil and Dutch hit town
AFP, Port Elizabeth

Port Elizabeth has put a 'no room at the inn' sign up as Brazilian and Dutch fans invade this sleepy Eastern Cape city for Friday's mouthwatering World Cup quarter-final.
This is PE's sixth World Cup game and a full house of 42,000 is expected on Friday for the first time at the Nelson Mandela Bay stadium which was built at a cost of 2.1 billion Rand (270 million US dollars).
The only fixture that has really stirred the place up to now was when England and their travelling band of 20,000 plus fans came to town to play Slovenia.
The Three Lions' 1-0 win was watched by over 38,000 at a Nelson Mandela Bay stadium which in contrast had more than 12,000 empty seats for last Saturday's second round game between Uruguay and South Korea.
The city's fan fest at PE's historic St George's Park cricket ground has welcomed around 150,000 through its gates, a crowd that peaked at 29,000 on the day of the opening match between South Africa and Mexico.
The city's coffers though have suffered compared to other host cities like Cape Town and Durban from not having any teams using it as a World Cup base, with most supporters flying in and out on match days.
But accountants, hotel, bar and restaurant owners have their fingers on the till in anticipation of a cash windfall for Friday's headline last eight clash.
Thursday's edition of the local paper, The Herald, meanwhile reported a 30 percent increase in visitors since the World Cup began on June 11.
That could have been even better if teams had been staying in or around PE, Bed and Breakfast Association chairman Walter Passet told the paper.
"The fans booked accommodation in cities where their home teams are based," he explained. "Unfortunately we failed to host even a single team."
Radisson Hotel duty manager Ravindar Kumar reported all 173 rooms were booked.
Fan Fest director Glenn van Eck revealed that PE's big screen in St George's Park had attracted the third highest attendance after Durban and Cape Town of all the 10 fan parks in South Africa. "By last Friday evening 150,000 people had passed through the turnstiles," he said.


  Ghana bids to become first African team into semis
AP, Johannesburg

Uruguay will be chasing its first World Cup semifinal appearance for 40 years Friday while Ghana is bidding to make history for Africa.
The quarterfinal match at Soccer City brings together a two-time, World Cup winner which has not gone this far since 1970 and another which is in uncharted territory, carrying the weight of an entire continent.
For decades, Uruguay has been in the shadow of South American rivals Brazil and Argentina but has now joined them in the last eight at the World Cup on merit. The 1930 and 1950 World Cup winner, Uruguay has a solid defense and a three-pronged attacking formation with Diego Forlan playing just behind Luis Suarez and Edinson Cavani. Coach Oscar Tabarez went to that system after the team labored to a 0-0 draw with France, and the result was two strikes by Forlan in a 3-0 victory over host South Africa. Uruguay also beat Mexico 1-0 thanks to a goal by Suarez, who then netted two in a 2-1 victory over South Korea.
"He is quite calm as a coach, with a lot of experience, who knows how to handle the group very well," Forlan said of Tabarez. "The experience that he has from (the 1990 World Cup) and other teams has helped us all a lot."
Uruguay has been forced into a change in defense with Diego Godin ruled out with a thigh injury. But Forlan has recovered sufficiently from a damaged toe and will face the Ghanaians. Ghana is without suspended players Jonathan Mensah and Andre Ayew but striker Asamoah Gyan is expected to recover from an ankle injury he picked up in the second-round victory over the United States. The biggest problem for the last African team left in the competition is the enormous weight of expectations. But Ghana's Serbian coach, Milovan Rajevac, says the prospect of becoming the first team from the continent to reach the last four will motivate his squad.
"We are not thinking about the pressure. We played very well at the African (Cup of) Nations so we have already proved that we are a team that knows how to compete," he said. "We will try to relax. You know it is good for us to be here. We are very happy with the whole situation.
"We have no obligation but still we want to use this opportunity to do our best and to make history."


  Zvonareva reaches Wimbledon final
AFP, London

Russian 21st seed Vera Zvonareva reached the women's singles final at Wimbledon with a 3-6, 6-3, 6-2 win over unseeded Bulg-arian Tsvetana Piron-kova on Thursday.
Zvonareva fought back from a set down to subdue Pironkova in a hard-fought semi-final on Centre Court and will face defending champion Serena Williams or unseeded Czech Petra Kvitova in the first grand slam final of her career.
"I haven't quite realised what I've done yet," Zvonareva said. "It is very exciting. It's one of my dreams to be in the final.
"It was very tough out there, she's a young player but a very, very tough opponent.
"She started so well and I'm happy with the way I was able to hang in the match and turn it around. "I played a bit quicker and more aggressive and managed to get on top."
Since turning professional 10 years ago, Zvonareva has been dogged by doubts about her temperament as she failed to fulfil her undoubted potential.
She was perceived as a choker who would crumble at the most important moments. Injuries have also blighted her career, but the 25-year-old has become a more confident, mature player in the last year and had already served notice of her improved mindset by reaching the Australian Open semi-finals 18 months ago.
At Wimbledon she knocked out three seeds en route to the last four, with Jelana Jankovic and Kim Clijsters among her scalps, and she was able to summon up the will-power to halt Pironkova's fairytale run as well.
Pironkova's expectations were so low heading into Wimbledon that she only arranged for accommodation for the first week of the tournament.
The 22-year-old's apartment booking ran out before the semi-final so the Bulgarian embassy had to find her emergency accommodation. Yet, with her confidence sky-high after stunning wins over Venus Williams and Marion Bartoli in previous rounds, Pironkova continued to play with intelligence and freedom in the first set.


  Japanese footballers return home
AFP, Osaka

Japan's footballers returned home from the World Cup to a hero's welcome on Thursday, greeted by about 4,000 screaming fans.
Japan coach Takeshi Okada and his players thanked fans for their support during the World Cup, apologised for their exit after reaching the last 16, and expressed their gratitude for being part of the team.
Okada defied pre-tournament criticism and targeted a semi-final spot, but Japan's dream ended in the last 16 with defeat on penalties to Paraguay. The Blue Samurai's strong showing stunned many at home, where fans and media had vented harsh frustration at Okada and his team, who had lacked firepower and offered tame showings on the international stage.
In South Africa, Japan defeated Cameroon 1-0 and Denmark 3-1, and lost to the Netherlands 1-0 to survive the Group E opening round, advancing to the knockout stages for the first time on foreign soil. The performance silenced critics and prompted a fickle public to heap praise on Okada, who has gone from much-maligned zero to hero over the course of four football matches.


  South America, Europe collide at World Cup
AFP, Johannesburg

The first of three World Cup last-eight collisions between South America and Europe pits Brazil against The Netherlands in a Port Elizabeth blockbuster on Friday.
And Ghana, sole survivors in the tournament from outside the two most powerful football regions, face Uruguay later hoping to become the first semi-finalists from Africa. There can be few more attractive casts than Maicon, Kaka, Robinho and Luis Fabiano of Brazil against Arjen Robben, Wesley Sneijder, Dirk Kuyt and Robin van Persie of Netherlands.
This is round four in a great World Cup rivalry with Brazil winning the previous two after the Johan Cruyff-inspired Dutch won 36 years ago with its revolutionary 'total' football. While the South Americans are favoured to win in the coastal Eastern Cape city, many pundits consider the Dutch capable of tossing aside the 'nearly men' tag they have worn since the 1970s after finishing runners-up twice.
Chasing a record sixth title, Brazil have been efficient rather than exhilarating in victories over North Korea, Ivory Coast and Chile and a stalemate with Portugal.
Positives include the form of goalkeeper Julio Cesar, a defence marshalled by captain Lucio and some razor sharp finishing with three-goal Luis Fabiano a prime exponent. But Real Madrid 'galactico' Kaka has yet to stamp his authority on midfield, collecting three yellow cards and one red while worrying coach Dunga by failing to score in three outings. The Dutch have also been methodical rather than magical, defeating Denmark, Japan, Cameroon and Slovakia without setting any prairies on fire, and there is a sense they can scale greater heights.

   

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