SATURday, june 12, 2010 Jyestha 29, 1417, JAMADIUS SANI 27, 1431 Hijri

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Leading News

Emotional start of World Cup Football tournament
AFP, Johannesburg

Africa's first football World Cup began in an explosion of colour and emotion at an opening ceremony in Johannesburg's Soccer City Friday, blighted by the absence of a grief-stricken Nelson Mandela.
Fans wept openly as five planes swept over the stadium and the iconic township of Soweto before 1,500 performers piled on to the pitch for a choreographed dance routine which saw them create a map of Africa.
Mandela was missing after his great granddaughter was killed in a car crash on the way back from an eve of tournament concert but his words were interspersed in an opening song, imploring fans to "overcome all adversity".
Artists from the five African teams competing in the finals then took to the stage, including Khaled, the Algerian king of rai music, and South Africa's legendary trumpeter Hugh Masekela.
Organisers had hoped that South Africa's first black president Mandela would wow the crowds with an appearance but he was instead mourning the death of his 13-year-old granddaughter Zenani Mandela in a crash that police said was caused by a drunk driver. Mandela is 91 and has been in frail health.
"We are sure that South Africans and people all over the world will stand in solidarity with Mr Mandela and his family in the aftermath of this tragedy," said a statement from his foundation.
"Madiba will be there with you in spirit today," it added.
In a letter to Mandela, FIFA president Sepp Blatter said he had been stunned "to hear the unspeakably tragic news."
Mandela's lobbying was seen as the crucial factor when the world football federation awarded South Africa the right to host the tournament. "It was his dream to unite a nation through sport that has been brought to life again today," said a front-page editorial in The Star.
The main headline of the mass-selling Daily Sun read simply: "Do It For Him!" on top of a picture of Mandela clutching the famous gold trophy.
Ever since it was awarded the tournament six years ago, South Africa has had to fend off accusations that its lack of infrastructure and high crime rate meant it could not stage an event of such magnitude.


 Growth target will not be very difficult to achieve: Muhith
BSS, Dhaka

Last year, Finance Minister Abul Maal Abdul Muhith identified implementation as the major challenge to achieve his fiscal goal, this year he confidently came up with the equation that growth target for the next financial year would not be very difficult to achieve.
Speaking at the traditional post-budget press conference in the NEC conference room in the city today, the finance minister also defended the bigger allocation, which he tagged as an urgent necessity for ensuring the vast population the ultimate benefit of economic prosperity. Planning Minister AK Khandakar, LGRD Minister Syed Ashraful Islam, Agriculture Minister Begum Matia Chowdhury, Commerce Minister Faruk Khan, Health Minister AFM Ruhul Haq and Energy Adviser Dr Taufiq-e-Elahi Chowdhury also responded to queries from the press.
Information Minister Abul Kalam Azad and State Minister for Power and Energy Muhammad Enamul Haque were present at the press conference. Muhith heavily came down on a group of critics who often moan that the growth declined last year without considering the impact of the financial 'tsunami' that the country faced during that time. "This sort of criticism is just crazy," the minister said.
He, however, said that he was happy about the positive criticism of Centre for Policy Dialogue (CDP), the prime think- tank, which also organized a post-budget press conference in the morning. The CPD observed that the investment and growth in the agriculture sector should be accelerated more to achieve the targeted 6.7 growth in the next financial year.
Regarding the opposition's comments on the budget, Muhith said that those were not valid comments as the proposed budget already accommodated most of their proposals.
The minister, however, invited the Leader of the Opposition and BNP Chairperson Begum Khaleda Zia to join the budget session for discussions and give their opinion for consideration. The finance minister outright trashed the opinions of some political leaders and economists who termed the proposed budget over-ambitious and were doubtful about its implementation. "There is an obsession about implementation [of budget]," Muhith said and observed that the nation should come out of such a negative mindset to see the prosperity.


 PM expresses optimism about implementation of the budget

BSS, Dhaka

Prime Minister Sheikh Hasina on Friday expr-essed firm optimism about implementation of the proposed budget and said there is no scope to create confusions among the people by terming it ambitious.
"Our ambition is to bring economic emancipation of the people and we will be able to do it by the grace of Allah," she said while talking to people from all strata and journalists who went to Ganobhaban to exchange greetings with her marking the day of her release from jail.
The Prime Minister said none could say that the proposed budget is anti-poor. This budget is for emancipation of the common people, she added.
She said the budget for 2009-10 has been implemented in most of the sectors. People from all walks of life, including leaders of the Awami League and its front organisations greeted the Prime Minister with bouquets and flowers.
Jatiya Sangsad Deputy Leader and AL Presidium Member Syeda Sajeda Chowdhury, AL Presidium Member Sheikh Fazlul Karim Selim, Abdul Latif Siddiqui, Advocate Yusuf Hossain Humayun, Dr Mohiuddin Khan Alamgir, Advocate Sahara Khatun, AL Joint Secretary Mahbub-ul Alam Hanif, central leaders Dr Abdur Razzak, AFM Bahauddin Nasim, Advocate Abdul Mannan, Abdur Rahman, Abul Hasnat Abdullah, former Dhaka University Vice-Chancellor AK Azad Chowdhury and Jatiya Party leader Ziauddin Ahmed Bablu were present on the occasion.
Besides the Awali League, the leaders of Juba League, Chhatra League, Jatiya Sramik League, Shecchasebak League and Mahila Awami League presented the Prime Minister with bouquets.
The last caretaker government arrested Sheikh Hasina on July 16, 2007 and she was released on Jun 11, 2008.
"My release was not a big issue. To restore democracy was the big thing. We held an election and democracy has been restored - we must keep this democratic trend continuing. Country's development is not possible without democracy," the Prime Minister told the journalists, recalling the day of her release from jail.


   CPD ON BUDGET
Growth target ambitious, success depends on good governance


UNB, Dhaka

Terming 6.7 per cent GDP growth target as ambitious, Center for Policy Dialogue (CPD), a civil society think-tank, thinks that implementation of the proposed budget for the fiscal 2010-2011 will be the key challenge for the government.
"Success of the implementation of the budgetary proposals and targets will hinge on the effectiveness of delivery, efficiency, transparency of development administration and good governance," CPD executive director Prof Mustafizur Rahman said on Friday.
He said attaining the target of 6.7 per cent economic growth for the coming fiscal would be challenging. "A growth rate of 6.0-6.5 per cent would have been more realistic." Prof Mustafiz made the observations at a press brief at city's BRAC Inn while presenting the CPD's analysis on the proposed national budget.
He said the government overlooked some crucial reforms agendas promised in the previous budget, which are essential for ensuring accountability and transparency in development management.
"Certain reforms initiatives were missing in the Finance Minister's speech. There was no mention about Regulatory Reforms Commission (RRC) or Better Business Forum (BBF), decentralization of public policy administration, reforms in rescheduling private sector loans and special monitoring arrangement of the development programmes through Critical Path Method (CMP)."
The CPD executive director noted that the government has successfully carried out some of the reforms measures proposed for the current fiscal. He, however, expressed doubt over the GDP growth target for the next fiscal and said: "To achieve 6.7 per cent GDP (gross domestic product) growth in the coming fiscal will be tough. Our investment structure indicates it."
Prof Mustafiz said the growth rate cannot be increased without increasing the volume of investment. "It's quite possible to achieve 8 per cent growth by 2015 for Bangladesh if investment and project implementation can be increased."
He thinks that the persistent fall in growth rate in the last three years was due to global downturn but it is now increasing gradually.
Replying to a question, he said: "We don't think it's a big budget. We only need proper implementation of the budgetary proposals through 'blending development and good governance'. The first year was a preparatory year for the government but the coming year should be the year of delivery." Asked about increased allocation for defense sector, the CPD executive director said: "I think it's a political decision."
On whitening undisclosed money, he said it is still not clear whether scope will be created for whitening undisclosed money. "We've to wait to be sure of it."
CPD thinks the growth rate of the current fiscal will remain higher than the estimate of Bangladesh Bureau of Statistics (BBS), Prof Mustafiz said. "Though Finance Minister Muhith in his budget speech said the growth rate would be 6 per cent, we think it will be between 5.5 and 6 per cent or less than 6 per cent."


    60,000 people marooned in flash flood in Bianibazar
UNB, Bianibazar (Sylhet)

Some 60,000 people have been marooned in Bianibazar upazila due to flash flood caused by incessant rain and onrush of hill waters from across the border.
Surma and Kushiara rivers are flowing above the danger level. Most portion of Sylhet-Bianibazar regional highway went under water due to the flashflood, disrupting communications between the upazila and other parts of the district. Most of the areas of the upazlia - Tilpara, Boiragibazar, Mathiura, Kurar bazaar, Sheola, Dubug, Charkhai, Alinagar and two-third portion of the upazila headquarters have already gone under water.
UNO Subrata Kumer Dey said 138 primary schools in the upazila have been announced as shelter centers.
About 300 families have already taken shelter in the primary schools, he said. Flood victims alleged that upazila parishad distributed relief among the flood victims which was quite insufficient.


     3 pirates killed in shootout in Barguna 
UNB, Barguna

Three pirates were killed and two RAB members seriously injured in a shootout between RAB and Coast Guards and pirates in Baleshwar river near Chardoani in Patharghata upazila early hours of Friday.
Acting on a tip-off, a joint team of Rapid Action Battalion and Coast Guards conducted a drive in the area at about 2 am and challenged a trawler carrying 15/20 pirates of 'Raju Bahini' while they were heading towards deep sea area to commit piracy. Sensing the presence of RAB and Coast Guard members the pirates opened fire on them, prompting the elite force to fire back.
Three pirates-Kuddus Mollah, the leader of the gang, Aroj Ali and Idris Ali died on the spot during the exchange of fire while the others managed to escape.
Flight Lt. Shamim and Nayek Faruk Hossain of RAB were injured during the gunfight. They were rushed to Barisal Sher-e-Bangla Medical College Hospital in critical condition.

   

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Business leaders for speedy implementation of budget proposals

BSS, Dhaka

The country's top business leaders today hailed the proposed national budget for 2010-11 fiscal and called for taking necessary steps for speedy implementation of the budget that eyes 6.7 percent GDP growth.
In their budget reactions, the business leaders termed the budget proposal as positive gestures towards achieving higher economic growth than ever.
President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Huq welcomed the increased allocation in power and energy sectors.
In his reaction to the proposed national budget, he said the business community was happy that the power and energy sector allocations were increased by 80 percent this year compared to previous year.
The FBCCI president lauded the proposal for prioritizing allocation for manpower development, and increased allocation for social safety net.
"The government has shown its seriousness in addressing the problems in different fields, including infrastructure. This was suggested by business leaders in our pre-budget discussions," said the president of the country's apex trade body.
Abul Kasem Khan, President of Dhaka Chamber of Commerce and Industry (DCCI), suggested for capacity building of Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) so that the state-run company can explore gas by utilizing its own equipment.
It is encouraging for business community that the government has proposed introduction of 'Tax Card', Khan said adding that it was a demand of the business leaders.
The DCCI chief underscored the need for giving importance on decentralized infrastructural development.
The DCCI president said the government should announce coal policy shortly and zero duty for import of raw materials of renewable energy.
He described the government as digital government and said it should waive VAT on import of mobile SIM cards and telecom tools to contribute to implementing 'Vision-2021'.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Abdus Salam Murshedi appreciated the government for the budget proposals with a special focus on power and energy sectors.
Implementation of the budget is a big challenge in the face of global financial recession, said Murshedi.


   BNP urged to join budget debate in parliament
UNB, Dhaka

Awami League general secretary Syed Ashraful Islam has urged opposition BNP to take part in the budget debate in parliament and help produce a good budget through threadbare scrutiny.
Replying to a question at the post-budget press conference at the NEC, he said it is not correct that the Finance Minister did not urge the opposition to attend the budget session.
"I myself time and again urged them to join. If the opposition joins the budget discussion, the nation will be benefited," said Ashraf, who is also the LGRD Minister in the Awami League-led Grand Alliance government.
He observed certain improvement in the domestic political culture this time round as
neither the opposition termed the budget anti-poor, nor the ruling party called it pro-poor before the presentation of the budget in parliament.
"There is no street procession for or against the budget. Undoubtedly, this marks an improvement in our political culture," he said.
Ashraf said the new budget made a big allocation for the LGRD Ministry to help fulfill their commitment to strengthen the local government system.
He said in the past, the military rulers used the LGRD Ministry to take away the people's right to vote. Now, the grand alliance government has made new laws for city corporation, upazila parishad and union parishad to strengthen the local government bodies.
Ashraf expressed the hope that Union Parishad elections will be held by next November and municipal elections will also be completed by that time.


    Economists, investors describe proposed budget positive for capital market

BSS, Dhaka

Country's eminent economists and investors on Friday described the proposed budget as favorable for capital markets.
The proposed budget will encourage the individual investors to invest more in the capital market, they said while talking to BSS.
The investors expressed their satisfaction over non taxation on income of individual investors from the capital market.
Eminent economist and professor of Economics Department of Dhaka University Abu Ahmed told BSS that the proposed budget will play a positive role in the development of the capital market.
Asked about imposition of tax on investing organizations in the capital market, he hopes that negative impact will not be seen in the capital market.
President of Dhaka Stock Exchange (DSE) Shakil Rizvi said the proposed budget has fulfilled the hopes of the investors of the capital market.
Shakil said imposition of 10 percent tax on income of investing organizations in the capital market is not much as tax rate in other sectors is four times higher than the proposed tax.
Terming the proposed budget as positive for the capital market, former President of the DSE Raqibur Rahman said the budget will help expand of capital market.


   All set for e-voting in CCC polls, EC conducts dummy e-voting

UNB, Chittagong

The district election commission has completed its preparations for introducing electronic voting system through EVM (electronic voting machine) in the coming Chittagong City Corporation (CCC) polls set for June 17.
Through this initiative, first of its kind, Bangladesh enters into digital voting system on a limited scale - a step forward to the modernization of the country's election process after the preparation of voter list with photographs.
District election commission on Friday conducted a dummy election in the city's Jamalkhan ward on an experimental basis, using electronic voting machines where a significant number of voters exercised their voting rights.
Earlier, Election Commission decided to introduce e-voting only in ward number 21 (Jamalkhan) under the CCC that has 14 polling centers.
District election officer Md Dulal Talukdar said: "We've chosen only one ward out of 41 for the electronic voting system. If the initiative appears successful, it'll be expanded all over the country gradually."
A total of 25,315 voters of Jamalkhan ward will have the experience of exercising their voting rights in the CCC elections through electronic voting system for the first time, he said.
"It's a simple system. It doesn't require ink and seal. Two machines - control unit and ballot unit - will be set up in each booth," Talukdar said, adding that an assistant presiding officer will operate the control unit.
The EC earlier came up with the decision for introducing electronic voting system when experts from Bangladesh University of Engineering and Technology (Buet) agreed to provide technical assistance for smooth operation of e-voting machines.
The EC, under the Local Government (City Corporation) Act 2009, finalized rules for the use of electronic voting machines in election for the first time in the country on April 6.
The EC, however, had a plan to introduce e-voting system in the Dhaka City Corporation election first.
Sources said the Institute of Information and Communication Technology (IICT) of BUET, which will provide the election commission with technical assistance on the polling day, had produced 130 e-voting machines for casting and counting votes.


    6 killed in Gazipur, Comilla road accidents 
UNB, Gazipur

Three people were killed and 20 others injured in separate road accidents in Gazipur on Friday.
Two bus drivers were killed and 20 passengers injured in a head-on collision between two buses at Sutrapur in Kaliakoir upazila on Dhaka-Tangail highway in the morning.
Witnesses said a Dhaka bound bus from Tangail and a Sirajganj bound bus collided at about 10:45 am, leaving two bus drivers dead on the spot and injuring 20 passengers.
The identities of the deceased could not be known immediately. The injured were admitted to local clinics.
In another accident, an adolescent boy was crushed under the wheels of a bus at Naojor in sadar upazila in the morning. The deceased could not be identified. The body was sent to sadar hospital morgue.
Meanwhile, two people, including a minor boy, were killed and four others injured in a road crash at Baldarampur on Dhaka-Homna road on Thursday.
Police quoting witnesses said the accident occurred as a Dhaka-bound bus rammed into a CNG-run auto-rickshaw coming from opposite direction, leaving all it's passengers on board injured at around 11 am.
Two critically injured Bayezid, 3, son of Amena Begum of Balakandi village in Titas upazila in Comilla and Abul Kashem, 45, of Parkanda village in Banchharampur upazila of Brahmanbaria district succumbed to their injuries at a local hospital. The injured were admitted to Gouripur Hospital in Daudkandi upazila. A case was filed in this connection.


    Countrywide rallies against eve-teasing tomorrow
BSS, Sylhet

Education Minister Nurul Islam Nahid on Friday urged all to join rallies at district and upazila level schools and colleges to launch a social campaign against eve- teasers.
He said the eve-teasers are terrorists, as they jeopardizes the lives of girl students.
The Minister said this while addressing a meeting with the civil society bodies in Golapganj of the district.
Nahid laid stress on the need for creating a social campaign against eve-teasing to ensure a congenial atmosphere in all educational institutions as well as in society.
Girls and women are being harassed and victimized by in various ways and it should be stopped forever by building a strong resistance and creating social awareness, he said.
Ministry of Education will observe 'Education Day' as Eve Teasing Resistance Day' on June 13 across the country to check this social menace that harasses girl students, he added.
The Minister said big gatherings will be organised in all schools and colleges at district and upazila level with the participation of students, teachers, guardians, officials, civil society members, women organizations, human rights activists and celebrities.
Meanwhile, letters have been sent to the deputy commissioners (DCs) and upazila nirbahi officers (UNOs) to observe the day.

   

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Editorial

Government khas land

Newspaper reports reveal that over 30 thousand acres of khas land of the government in greater Dhaka district have gone under the illegal possession of some individuals, organizations and land agencies. Various quarters occupied the land of Bhawal and Nawab estates through forgery. The Parliamentary Standing Committee on Land Ministry has already formed a sub-committee to identify and recover the illegally occupied land. The parliamentary standing committee chief said some corrupt people in connivance with some government officials grabbed the property hiding the truth and the correct information. He hoped that the land worth thousand crores of Taka would be recovered within the tenure of the present government.
It is very unfortunate that influential people and land grabbers continue to keep under their occupation huge government khas land while the number of landless people in the country is rising rapidly. At the time of liberation of the country the number of landless people was around 32 lakh, but over the last 36 years it has increased alarmingly to about one crore. These people rendered homeless mainly by river- erosion and extreme poverty are leading unbearable life in slums of the cities or elsewhere in untold miseries.
There is government rules to distribute khas lands among the landless people to mitigate their sufferings. But those rule are not being followed properly and the woes and sufferings of the landless people continue unabated. According to informed sources, there are about two crore bighas of government khas lands in the country. Had these been distributed properly among the landless people, each of them would have got about two bighas of land on an average.
But in rality, only a small number of landless people have got allotment of government khas lands, most of which are under the illegal occupation of influential land grabbers and political opportunists. These people are so powerful that in many cases in the past attempts to recover these lands from the illegal grabbers have failed. Now, the government should take bold steps to recover the khas land from illegal occupation and distribute among the landless people.


  River erosion

Another season of river erosion is in progress and vast tracts of land are being devoured at different places of the country. According to a report, 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.Bhagalgarh, Bepari Para, Chuniarchar, Jungledi and Dakater Ghop areas of Charpakkhimari union in Sadar upazila were the most erosion affected areas where 15 houses disappeared in the twinkling of an eye in the morning.
In Bepari Para, four of the six try-dams erected on the Brahmaputra banks gave in to strong current and erosion, threatening two buildings.
This is no isolated case. Different rivers are eroding their banks and devouring land, crop fields and homesteads in different areas. For example, 21 villages of Kurigram and Kishoreganj have reportedly been devoured by river erosion. The homesteads of 450 families there have gone into river-bed and the affected people are passing their days under open sky.
With the rise of water level, large scale erosion by rivers is going on at different places of the country. The mighty Padma has devoured two kilometre crop land in Aliabad union under Faridpur Sadar thana of Faridpur district. Jamuna river has eroded vast tract of land at Saghata in Gaibandha. The river has devoured two hundred homesteads and trees and crops recently. Two barracks of Natarkandi Shelter Centre at Astamir Char union under Chilmari in Kurigram has gone into river bed as the Brahmaputra continues to erode its bank. Twenty families rendered homeless by erosion are now passing days under open sky. In Ulipur of Kurigram, river erosion has rendered 200 families shelterless. Similarly rivers are eroding their banks at Manikganj, Munshiganj, Shariatpur, Bogra and Maulbibazar.
River erosion is a scourge for the people of Bangladesh as it devours land and renders people homeless at different places every year. During the last rainy season also, river erosion played havoc with land and homesteads at different places of northern, central and southern zone of the country. The erosion of the Brahmatputra, some of its tributaries and the Jamuna have taken a devastating turn causing heavy damages to land, roads, homesteads, schools, madrassas and properties in the northern region. The mighty Padma in the central zone eroded its banks in Faridpur, Shariapur and Munshiganj areas. This year also a number of localities with huge agricultural land and homesteads have been devoured by erosion in Faridpur and Shariatpur and elsewhere rendering thousands of people homeless. The erosion victims across the country are passing days in endless miseries as they have lost their land, crops and shelters. The government should on emergency basis provide relief for them and arrange for their rehabilitation on humanitarian ground.

   

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Analysis

Resolving the water crisis

One of the most water-stressed countries in the world, Pakistan faces a situation threatening to into grave water shortage.

Humayun Akhtar Khan

In the early 1960s, the water table had risen to surface level in many areas of Pakistan, causing water logging and salinity. The government countered the menace by increasing the use of groundwater through tube wells. Pakistan is threatened by a water crisis once again, this time in a different sense.
One of the most water-stressed countries in the world, Pakistan faces a situation threatening to into grave water shortage. Direct rainfall contributes less than 15 per cent of supply of water to crops. Of the cultivatable areas of almost 77 million acres (MA), only 36 MA are canal-irrigated. Pakistan has the additional potential of bringing about 22.5 MA of fallow land under irrigation.
An average of 35.2 million acre feet (MAF) of water escapes beyond Kotri every year, mostly in the rainy season. With their flow patterns variable, Pakistan's rivers have higher discharges in summer and lower discharges in winter. Pakistan's dependence on a single river system means that it has fewer choices than countries with a multiplicity of water sources. Therefore, construction of additional water storage facilities is critical for the conservation and utilisation of water.
By 2013, Tarbela, Mangla and Chashma, which are rapidly losing their storage capacities because of sedimentation, will have lost almost one-third of their original potentials. This virtually means loss of one mega-reservoir. Creation of more reservoirs is an absolute essential also if Pakistan is to meet the additional allocations required under the 1991 Water Accord between the provinces.
Groundwater, which now accounts for almost half of all our irrigation requirements, is now overexploited in many areas and its quality is deteriorating. There is an urgent need to develop policies and approaches for bringing water withdrawal into balance with recharge.
Climate change is affecting the western Himalayas more seriously than the other mountain systems of the world. In the next few decades, global warming will increase river flows. These, together with more rainfall, are going to worsen the problems of flooding and drainage, particularly in Sindh. Then, after the glaciers have melted, there are likely to be serious decreases in river flows.
Pakistan has invested massively in its water infrastructure, which is crumbling because there was little investment in its maintenance. Apart from what the taxpayer contributes, development money is scarce because users of canal water pay a very small portion of the cost involved in the infrastructure being kept in a good state of repair.
The solution to Pakistan's water problems has two aspects: how the country can utilise its own potential, and how its potential can be affected by India.
In accordance with the Indus Water Treaty between Pakistan and India in 1960 under the auspices of the World Bank, Pakistan receives unrestricted use of the western rivers: Indus, Jhelum and Chenab.
India was allowed exclusive rights to use the waters of the Ravi, Sutlej and Bias. The replacement works required by Pakistan as a result of this treaty involved two major dams, five barrages and eight link canals.
However, the treaty also allows India to tap the hydroelectric power potential of the Chenab and Jhelum rivers before they enter Pakistan, with the stipulation that the quantity of water reaching Pakistan, and the natural timing of the inflow, not be affected. Timing is an important issue because Pakistan's agriculture depends also on the water's availability during the sowing season.
One of the treaty restrictions on India is the limit on the amount of storage for its hydroelectric projects on the Chenab and Jhelum, and the amount is an element which can affect the timing of the rivers' flow into Pakistan. The restriction is losing its significance as a result of Baghliar Dam.
The treaty restriction on storage also required that India not build gates for flushing silt out of its dams. This meant that any Indian dam on the Chenab and the Jhelum rapidly fills with silt. India used this feature as an argument in favour of Baghliar Dam before the Neutral Expert appointed by the World Bank.
Deciding in favour of Pakistan on three issues, the Neutral Expert ruled in favour of India on the fourth: building of gates. Pakistan is thus left without a mechanism for protection against manipulation of flows by India. When India chose to fill Baghliar it did that exactly at a time when the filling caused the maximum damage to Pakistani farmers.
Baghliar is not the only dam India has built on Chenab and Jhelum. India has commissioned 11 projects on the Chenab and is considering 74 projects on the Jhelum. Another crisis in the making is the Kishanganga hydroelectric project on the Neelum River in India. The average flow of Neelum water will drop by 21 per cent in Pakistan, which will not only cause energy losses amounting to billions of rupees but also serious environmental damage. In due course, India will have the ability to damage Pakistan's resources.
Two things should be done immediately: the World Bank arbitration process should be reactivated, and the pace of work at Neelum-Jhelum should be significantly increased. India is already doing that at the Kishanganga project.
Pakistan's water issues with India are about as important as the resolution of the Kashmir problem. In fact, the two are interlinked. Therefore, the resolution of the water issue should be part and parcel of any process of normalisation between India and Pakistan. Pakistan has to invest soon in new large dams.
WAPDA's Vision 2025 should be pursued on a priority basis, under which four storage reservoirs, Yugo, Skardu, Basha and Kalabagh, are planned. One storage is urgently needed merely to make up for the dams' capacities lost to sedimentation.
As for the years beyond 2025, Pakistan should start focusing on other storage sites. There are many on the Indus and the Jhelum and off-channel. There are also hundreds of small and medium storage sites in all the four provinces, work on which must be pursued. At the same time, the enormous backlog of maintenance work on our water infrastructure must be taken in hand.
Lack of transparency and trust has made the discussion of large dams a very difficult process in Pakistan. Amazingly, in most countries of the world, the lower riparian is the greater beneficiary of new storages. Sometimes lower riparian regions pay for upstream storage.
In order to build confidence once again, there needs to be a totally transparent and verifiable implementation of the 1991 Accord and sufficient water needs to be guaranteed to the delta. Large investments are also required for those who do not have water and sanitation services in Pakistan's cities, towns and villages. Pakistan also needs to invest in making its municipal and industrial wastewater usable. Principles have to be defined on how the cost of water infrastructure should be distributed between the taxpayer and the user.
In the last two years the PSDP has been cut by hundreds of billions of rupees. Rather than cutting other huge expenditures, Pakistan cuts the PSDP to achieve IMF-dictated fiscal targets. So where will the money come from for all these water projects is a big question mark.


The writer is secretary general of the Pakistan Muslim League-Q and a former federal minister. Email: huakhan@ gmail.com


  Of Bhopal and books

Moro is all heart about Sonia and all harsh about her Congress mandarins. This may explain what one hears about their different reactions. Sonia, say insiders, is for a less belligerent stand on the book. It must be hoped that she has her way.

J Sri Raman

Talk of the quirks of fate. Today must have been a time for India to remember him and his book about a tragedy that has just turned more terrible. Instead, he appears before us now as an author facing official fury for another work of his.
Italian writer Javier Moro - and his French and more famous collaborator Dominique Lapierre - had come out in 2001 with Five Past Midnight in Bhopal. Lapierre had made some enemies in 1975 with his City of Joy, a novel about slum-dwellers of Kolkata - then Calcutta - but the book on the world's worst industrial disaster won him and Javier only friends in India. The media and others must have been quoting the authors' findings after a court verdict of June 7, 2010, in the case of the Bhopal gas-leak tragedy of December 3, 1984.
The entire country is indignant at the injustice that the verdict represents without being illegal at all.
Just two years' imprisonment for eight Indians - with no word about Warren Anderson, CEO of Union Carbide, when the toxic gas from the US multinational's plant laid a large area of the central Indian city to waste and took a toll on over 20,000 lives - seems less than a semblance of justice a quarter century after the event.
As a review of the book put it in 2002, Moro and Lapierre "show how Union Carbide ignored advice not to build a pesticides plant handling deadly poisons in the middle of a densely populated city, how its sales miscalculations and subsequent attempts to force its Indian subsidiary to cut costs led directly to the tragedy in which tens of thousands died in the most horrifying circumstances."
Commentators, making pretty much the same points, are not quoting any of this. Being cited, instead, are bits and pieces from the latest of Moro's books, which some luminaries of the ruling Congress party have brought into limelight even before its publication in English.
The Red Saree: When Life Is the Price of Power is supposedly a fictionalised biography of Sonia Gandhi, the Indian leader of Italian origin. Congress spokespersons, especially legal eagle Abhishek Singhvi not given to frothing at the mouth, are crying foul over Javier's alleged attempt to defame Sonia and deny her privacy.
Well, one hardly gets this impression from Moro's official web page. "The adventure of a woman, the saga of a family, the epic story of a nation" is how the page describes the book. The florid blurb, however, barely reveals any 'fictionalised' part.
As it sums up the story: "Cambridge, 1965. Sonia Maino, a 19-year old Italian student, meets a young Indian called Rajiv Gandhi. She is the daughter of a humble family from near Turin; he belongs to the most powerful clan in India. This is the beginning of a love story that even death cannot destroy." Gushingly, it goes on: "The Italian girl leaves her world and her past behind for love, and embraces the culture of her new country, India. A country like no other, where twenty million gods are worshipped, eight hundred different languages are spoken and over five hundred political parties stand for election."
The statistics in that last sentence may be questionable. But while it may be a flattering description of the odds Sonia faced, it does not quite fictionalise her character. The first 31 pages of the book, freely available - though Moro has accused Singhvi of 'stealing' the English version of the book before its release into the market - do read like pulp fiction, but do not appear to defame Sonia. A peek into the book before any possible ban on the book.
The story begins thus: "New Delhi, May 24, 1991. Sonia Gandhi simply cannot believe that the man she loves is dead, and she will no longer feel his caresses or the warmth of his kisses. She will never again see that sweet smile that one day swept her off her feet..."
Then comes the part that Singhvi finds offensive, even outrageous. Sonia, says the book, thinks "of fleeing this country that devours its children". She talks to her mother in Italy, who asks her to return. Her grief in solitude is broken by the announcement of a visitor - a member of the Congress Working Committee.
"Sonia ji," he says, "I want you to know that the Congress Working Committee, meeting under the presidency of your husband's old friend, Narasimha Rao, has elected you president of the party. The election was unanimous. Congratulations."
Writes Moro: "Sonia stands staring at them impassively. Is grief not something pure and sacred? They have not even allowed her to dry her tears for the death of her husband and the politicians are already here...She says: 'I cannot accept. My world is not politics.'
The committee member insists. 'Sonia ji, I do not know if you realise what the committee is offering you. It is offering you absolute power over the largest party in the world. And it is doing that on a silver plate. It is offering you the chance to lead this great country. Above all it is offering you the chance to take on the inheritance of your husband so that his death is not in vain.'
"Others join in. 'Sonia ji, we are making you an unconditional offer,' says the eldest man, an astute politician known for his skill in manipulation, and who seems about to pull something out of his sleeve. 'Perhaps the most important thing for you is that you will once again enjoy the highest level of protection, just like when Rajiv was prime minister.'"
Readers may wonder about the identity of this one. Could it be, some will ask, Arjun Singh, coincidentally also the chief minister of the state of Madhya Pradesh with ill-fated Bhopal for its capital in 1984? This, however, is a secondary question. What is more notable is that Moro is all heart about Sonia and all harsh about her Congress mandarins.
This may explain what one hears about their different reactions. Sonia, say insiders, is for a less belligerent stand on the book. It must be hoped that she has her way.
After all, the far-right Bharatiya Janata Party (BJP) has made a fool of itself over a book - former External Affairs Minister Jaswant Singh's book on Mohammad Ali Jinnah. Must the Congress rush to emulate the example?
Besides, should more important issues than Moro not be engaging the attention of the Congress, its president and the government? Like some long-overdue relief for the surviving victims of Bhopal?


The writer is a journalist based in Chennai, India. A peace activist, he is also the author of a sheaf of poems titled At Gunpoint

   

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Viewpoints

Can we have a new UN please?

The United Nations with its fine institutions and the movers and shakers who run the world body are yet to unequivocally condemn the Israeli outrage, let alone lift a finger against the regime.

Aijaz Zaka Syed

Is there no limit to international duplicity and hypocrisy? Given the intensity of global outrage over the assault on the Gaza aid flotilla, some of us were beginning to hope that the world might finally confront Israel. We were obviously mistaken - once again.
OK, poor Palestinians have long gotten used to getting swatted like flies and being at the receiving end forever. And Israel has always gotten away with murder. But those killed in cold blood in international waters were not some faceless "Palestinian terrorists," as Israel calls them, but international peace activists and aid workers. And mind you they were not running guns or drugs but rushing the critically needed aid like food, medicines and most mundane stuff such as books and toys for children and bricks and cement for the ravaged homes of Gaza.
This is why the least you expected from the so-called international community and its so-called institutions was some token action against Israel, or at least strong words against its shocking and brazen acts against the unarmed peace activists. The United Nations with its fine institutions and the movers and shakers who run the world body are yet to unequivocally condemn the Israeli outrage, let alone lift a finger against the regime.
Helen Thomas, senior White House Press Corps member and the considered doyenne of international correspondents, gave a rare voice to America's sleeping conscience when she blasted Israeli attack on the humanitarian convoy saying, "our initial reaction to this flotilla massacre, deliberate massacre, an international crime, was pitiful."
Ms. Thomas who's facing the combined wrath of the Israeli lobby and fanatically pro-Israel US media for advising the Jews to "get the hell out of Palestine" has been taped angrily questioning the US policy on Israel: "What do you mean you regret when something should be so strongly condemned? And if any other nation in the world had done it, we would have been up in arms. What is this sacrosanct, iron-clad relationship, where a country that deliberately kills people?"
Ms. Thomas, who grilled 10 US presidents and survived, has been brought down by the lobby and has been forced to step down. So much for the much-celebrated Western freedom of speech! Meanwhile majority of US media networks, manipulated by the pro-Israel moneybags as always, are bending over backward to justify and "explain" the madness of Israeli massacre, spawning totally bizarre and ludicrous theories about the activists brandishing weapons and assaulting Israeli troops shouting "the Prophet's army is coming!"
IF the aid flotilla had arms on board, why it didn't use them to defend itself? More to the point, how come all those killed were shot point blank on the forehead and in the back? But how can you argue with folks who live in a different world of their own where ephemeral things like reason, common sense and facts cannot break in.
What's new though? This is how Israel has always operated. It sets its own rules of the game and always gets the blessings of its defenders however indefensible be its actions. Only we expected better from Obama, because of his own sublime rhetoric and the incorrigible "audacity of hope". Clearly, the more things change for Israel and America, the more they remain the same. So instead of going after Israel that is guilty of ultimate crime of murdering peacemakers and aid workers, not to mention the humanitarian catastrophe that has Gaza in its grip because of Israeli siege, the UN and world powers have inflicted another set of sanctions against Iran. There's talk of "shock and awe" all over again, vowing to eliminate the "threat of Iran's nuclear weapons" and "Islamic terrorism".
Pray who's the real terrorist here? The one who hasn't attacked any neighbor, nor invaded a distant neutral country in the past few centuries or one who has just killed nine innocent people on a humanitarian mission? Who's the real threat to world peace? Iran's antiquated nuclear program, constantly monitored and "inspected" by the IAEA gray suits, or a state that has been hoarding nuclear weapons for half a century now and is guilty of wars against neighbors that have killed thousands of innocent people and driven millions from their homes? More ironically, all those ganging up against Iran brandishing this new stick of sanctions have enough nuclear weapons in their possession to blow up the planet many times over.
CAN there be a better example of hypocrisy and duplicity? If this isn't double standard, what is? Let's face it. International institutions like the UN that were created ostensibly to build peace and avoid conflicts and wars have become playthings in the hands of big powers. They run the world as they please, using these international institutions. The UN, for which I have immense respect, has become a toothless tiger because the real power rests with the Big Five who rule and manipulate it with the help of their veto power. As any student of political science would tell you, this is precisely what happened with the League of Nations. With the world powers refusing to take it seriously and using it to push their own agendas, the league collapsed under the weight of its own contradictions and double standards in no time.
The collapse of the league helped and aggravated the World War II wiping out nearly half of Europe's population. When the UN was founded by the victors of the World War II in 1945, the failure of the league was supposed to have been in sight and right lessons were supposed to have been learned. But look at the crippling powerlessness of the UN today. It has become the handmaiden of big powers despite the noble goals and objectives that were at the heart of its inception.
I agree most UN agencies have been doing an exemplary job of providing aid and fighting poverty, disease, backwardness, climate change and other demons. However, the world body has woefully failed in its chief objective; its raison d' etre of protecting peace and preventing conflicts.
The UN has still failed to deliver 65 years after its formation because some at the table are more equal than others. Western colonial rule may have ended long ago but their writ still runs in and outside the UN. The institution that is described as the world's Parliament is sadly dictated by the old jungle law of the might is right. The number of times the US alone has used its veto power to block even perfunctory resolutions condemning Israeli crimes against Palestinian people runs into hundreds.
If this has to change, the UN must change to reflect today's changed geopolitical realities. Isn't it strange that the largest democratic body on the planet offers no real say to more than half of its population? The Security Council that controls the world body is restricted to the US, Russia, China, Britain and France.
The Middle East, the cradle of civilizations, home to three great faiths and the world's known energy resources, has no say in the UN's decision-making process. A country like India with a billion plus population is kept out in the cold. Ditto Africa where life on the planet is said to have begun. Representatives of the world's 1.6 billion Muslims are not welcome either. In fact, the entire Southern Hemisphere of the globe doesn't have a seat at the table. When will this change? Why should the UN be the preserve of a select club? India has been knocking on the door for some time, hoping to get a permanent seat at the privileged table. But others must follow suit too, pushing for a complete restructuring of the world body. It's time to build a new UN and a new world order. A just and democratic world is not possible without justice and equality at the UN.


  The confrontation Obama avoids

Without a serious American confrontation, argues Dr. As'ad Ghanem, a visiting professor from Haifa University, the Israeli
prime minister has nothing to worry about.

George S. Hishmeh

Much as the Palestinian leadership would welcome a US financial commitment to the tune of $400 million to alleviate, in part, the deplorable situation within Gaza, President Barak Obama's pronouncements at the end of his one-hour session last Wednesday with Palestinian President Mahmoud Abbas fell short of the high expectations.
The Palestinians, as many others elsewhere, were hoping that in the wake of Israel's recent massacre of nine pro-Palestinian activists, including an American citizen, aboard the aid-carrying flotilla of six Gaza-bound ships, the American leader would be assertive.
The Palestinian leader told an investment conference in the Israel-occupied West Bank last week that his message to the American leader was that "we need bold decisions to change the face of the region".
However, after their meeting at the White House, Obama only acknowledged that it was "important for us to explore new mechanisms so that we can have goods and services, and economic development, and the ability of people to start their own businesses, and to grow the economy and provide opportunity within Gaza".
There is no doubt that Obama?"cares deeply" about the Palestinian-Israeli issue, as he said, and promised "to go ahead and move forward on a two-state solution that will affirm the needs of Israeli citizens and will affirm the needs of Palestinian - Palestinians who are desperate for a homeland".
"And that means, on the Israeli side, curbing settlement activity and recognising some of the progress that has been made by the Palestinian Authority when it comes to issues like security. It means, on the Palestinian side - and I was very frank with President Abbas - that we have to continue to make more progress on both security as well as incitement issues," Obama also said.
Yet, there was no evidence of any boldness in Obama's public statements. Sorely missing, for example, was an outright condemnation of the Israeli assault on the aid-carrying flotilla, as voiced by other international leaders. One would have expected the Obama administration to come up with some practical steps to lift the unjustified Israeli blockade on Gaza, where some 1.5 million impoverished Palestinians have been living under a tight siege imposed by Israel and, shockingly, Egypt.
According to Amnesty International, "mass unemployment, extreme poverty and food price rises caused by shortages have left four in five Gazans dependent on humanitarian aid".
Israel's continuing blockade of Gaza, a form of collective punishment, is a flagrant violation of international law. Obama did acknowledge belatedly that the situation in Gaza is "unsustainable", becoming, as the BBC put it somewhat critically, "the latest of a long line of major figures to describe the Israeli blockade" in this fashion.
During a recent meeting with Jewish congressmen, Obama was said to have made "an overtly self-deprecating comment", saying he had stepped "on a few mines as he took his first steps in the Middle East".
Akiva Eldar, the Haaretz columnist, reported that "the (Jewish) delegation left the White House assuaged, feeling perhaps that a president who has been hurt by mines would be wary of much bigger [Israeli] bombs".
He concluded: "It appears that the Obama administration has realised that it will not succeed where its predecessors have failed, in bringing about peace in the Middle East."
In other words, "why should he fight with the Jews... when Republicans are threatening to take over the House of Representatives in six months...?"
One wonders whether Obama has been watching closely the ugly campaign launched by pro-Israeli elements in the media and outside against the much-respected and admired White House correspondent, the 89-year-old Helen Thomas, a Lebanese American.
If so, the president ought to realise, as Alison Weir, executive director of If Americans Knew, noted in an article published in Counterpunch, that "whenever Israel commits yet another atrocity, its defenders are quick to redirect public attention away from the grisly crime scene".
By all calculations, the Israeli attack on the "Freedom Flotilla" was a fiasco and a heavy price that Israel will have to bear. Yet, surprisingly, there is no evidence within Israel of any major movement to pull the rug from under the Benjamin Netanyahu government, probably because he has managed to woo both the left and the right to join his government.
Without a serious American confrontation, argues Dr. As'ad Ghanem, a visiting professor from Haifa University, the Israeli prime minister has nothing to worry about.


  Kan’s new job isn’t easy

Naoto Kan, the 16th prime minister in two decades, faces pretty much the same roll-call of problems confronted by his string
of mostly short-lived predecessors.

David Pilling

It is commonly stated of Japan that everybody knows what has to be done. All that is needed is a leader with the guts to do it. This is a thesis largely devoid of merit.
Naoto Kan, the 16th prime minister in two decades, faces pretty much the same roll-call of problems confronted by his string of mostly short-lived predecessors. The economy is stuck in deflation, public debt is rising, the population is ageing and, more than 60 years after the war, Japan has still not properly defined its place in the world.
For the most part, the men who shuffled in and out of office over those years failed to tackle those problems not because they were weak (though most of them were), nor because they were stupid (though some of them might have been). They failed to grasp the nettle because Japan's problems are not as easy to solve as commonly supposed. Politicians have oscillated, sometimes dangerously, between policy prescriptions precisely because there are no magic wands. The Japanese public - portrayed by the "just do it" advocates as impatient for the necessary medicine - is deeply ambivalent about what is wrong and how to fix it.
Look at some of the most commonly identified problems and their proposed solutions and this becomes clear.
l Everyone agrees that Japan's gross public debt, fast approaching 200 per cent of output, must be slashed through a combination of spending cuts and tax rises. Everyone, that is, but the markets, which have refused to take fright, pricing 10-year debt to yield a stingy 1.3 per cent. Junichiro Koizumi, whose five years in office are often regarded as a bright spot of recent policymaking, came in with a cost-cutting mandate. For the most part, he failed to implement it. Debt issuance actually rose in the early part of his premiership as he buckled under the realisation that spending cuts were hard to find and that fiscal contraction could trigger a downward spiral.
Tried and failed
l A counter view is that, rather than cuts or higher taxes, Japan desperately needs nominal growth. Debt levels have risen because the denominator - nominal gross domestic product - has been stagnant. That is largely the result of deflation. The shopping list of prescriptions is long: reflate the economy through more aggressive monetary policy or an inflation target; privatise the postal bank; deregulate industry and encourage foreign investment. Apart from an inflation target, all have been tried.
l Most people agree that deflation is public enemy No 1. Well, not Japan's central bank, which has come to the unstated conclusion that it can live with mildly falling prices. To be fair, the bank tried quantitative easing long before unconventional monetary policy became fashionable elsewhere. It had almost no impact. So divided is the debate, there is even a voluble minority that proposes an increase in interest rates - stuck at zero for more than a decade - as a way of putting money into savers' pockets.
l Sales tax, at just five per cent, has long been identified as the obvious way of raising revenue. Kan, a convert, would like to double it to 10 per cent. But the tax has a troubled record. When it was increased from three to five per cent in 1997, the economy tumbled into recession. Retail sales fell steadily for the next seven years.
l Japan is deeply divided about whether it should embrace market capitalism, the theme of Koizumi's premiership. The ousting of the Liberal Democratic Party last year was partly a backlash against these ideas. The public continues to want US levels of tax with Swedish levels of welfare. It is a nice thought.
l There are no easy choices on foreign policy either. Washington would like Japan to contribute more to international security. But the Japanese remain attached to their (American-imposed) pacifist constitution. Many resent Japan's role of US poodle, though they greatly value US protection - an ambivalence that helps explain the disastrous tug-of-war over the Futenma airbase that led to last week's resignation of Yukio Hatoyama as prime minister. Japan's foreign policy is further strained by divisions over how to deal with a more assertive China - by moving closer to Beijing or by clinging even tighter to Washington's skirts.
Japan's leaders have shirked hard choices. Also, their system is not conducive to producing strong leaders. But it is wrong to suggest the answers are obvious. If Kan doesn't already know that, he will soon find out.

   

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International

US missiles kill 15 in NW Pakistan
AP, Islamabad

A volley of U.S. missiles killed 15 alleged militants in an extremist stronghold in northwestern Pakistan on Friday, the second such strike in less than 12 hours, officials said.
The Obama administration regards missile attacks from drone aircraft as a key weapon against al-Qaida and the Taliban close to the Afghan border. Last month, al-Qaida's reputed No. 3 official, Mustafa al-Yazid, was reported killed in a similar strike in the North Waziristan region. Six missiles were fired in Friday's attack on a house in a village close to the border, two intelligence officers said. They were not authorized to give their names.
Yousaf Khan, a government administrator in the region's main town of Miran Shah, said 15 alleged militants were killed. He said officers were still gathering information about the identities of the victims. Late Thursday, two people were killed in another strike in North Waziristan. Officials did not say whether they were believed to be militants.
Pakistan is under pressure to launch a military offensive in the region, but the army says it is too stretched and committed to other parts of the border region to do so anytime soon.
There have been more than 35 suspected missile strikes this year alone, the highest tempo since the attacks began in earnest in 2008. The attacks have killed many hundreds of people, most identified by Pakistani officials after the strikes as suspected militants.
There have also been many accounts of civilian deaths. Washington does not acknowledge firing the missiles, let alone say who they are killing. Critics say the attacks may violate international law
and amount to extrajudicial killings.
Pakistan's government publicly opposes the strikes to prevent domestic critics from accusing it of conspiring with United States in killing its own citizens. But it is widely believed to provide intelligence assistance for at least some of the strikes. The drones either take off from bases across the border in Afghanistan or reportedly from secret bases within Pakistan. Also Friday, gunmen shot and wounded a retired army colonel in the Pakistani capital, police said.
The attackers struck as the former officer was in his car and preparing to leave his Islamabad home.
The motive for the attack was not immediately clear, police spokesman Naeem Iqbal said. However, targeted assaults on military brass have occurred at least three other times in Islamabad over the past year, killing one officer.


   Chinese man convicted for selling two-year-old son online
AFP, Beijing

A court in China has given a 22-year-old man a suspended jail sentence for selling his toddler son on the Internet for 18,000 yuan (2,650 dollars), state press reported Friday.
The man from the central province of Hubei sold his two-year-old son to a Beijing couple in April last year after advertising the child online, the Beijing Times reported.
The unmarried Lu sold the child after he split up with the boy's mother and decided he did not have the time or money to raise him, the report said.
But after regretting the sale and reuniting with the mother, Lu in June last year accused the Beijing couple of child trafficking and demanded the police return the boy to him when they refused to surrender custody. Following an investigation and trial, the Beijing court convicted Lu on Thursday of abandoning his child and meted out a six-month suspended sentence with one year of probation.
The Beijing couple were found not to have committed any wrongdoing, as Lu had admitted he lacked the means to raise the child and they were willing to raise it, it said.
Judicial authorities ordered the child be returned to Lu, while the 18,000 yuan was confiscated by the court, it said.


  37 dead in Kyrgyzstan ethnic clashes: Ministry
AFP, Bishkek

Thirty seven people have been killed and more than 400 wounded during ethnic violence in southern Kyrgyzstan, the country's health ministry said in a statement on Friday.
"The number of dead in the Osh region during the unrest has risen to 26 people," the ministry said. More than 400 people have been wounded, 43 of them critically, so far in the ongoing unrest, it added.
Kyrgyzstan's provisional government led by Roza Otunbayeva has struggled to impose order on the volatile Central Asian state since seizing control during riots that ousted President Kurmanbek Bakiyev earlier this year.
Witnesses said brawls had broken out between ethnic Kyrgyz and ethnic Uzbek groups in Osh, once the stronghold of Bakiyev.


  Head of Thai protest probe says won’t assign blame
AFP, Bangkok

The head of a government-commissioned probe into deaths during Thailand's "Red Shirt" street protests on Friday promised an unbiased investigation but said his aim was not to establish responsibility.
"I am always impartial," said Kanit Nanakorn, a former attorney general asked by Prime Minister Abhisit Vejjajiva to lead an independent inquiry into the loss of 90 lives during clashes between armed troops and demonstrators.
He said, however, that the probe "is not aimed at finding who should be held responsible and to punish, but to establish the facts and educate Thai society."
Kanit also refused to set a timeframe for finishing the investigation, saying it might not be completed by the next election, due by the end of 2011 at the latest.
The main opposition party has said Kanit is too close to the government, warning of a likely "whitewash".
The Reds' rally, broken up on May 19 in an army crackdown on their vast camp in the heart of Bangkok, sparked outbreaks of violence that have left 90 people dead, including two foreign journalists, and nearly 1,900 injured.
The government has defended the use of armed troops, saying they were only authorised to fire live ammunition as warning shots, in self-defence or against "terrorists" whom it has accused of inciting the unrest.
Abhisit has said he wants somebody who is sympathetic to the Red Shirts in the panel to make sure all sides can be confident of its neutrality.
Kanit said he had not yet selected the other members of the commission, but would try to include "every colour" if possible, referring to Thailand's different political factions.
He said he planned to visit some of the detained Red Shirt leaders next Monday at a military barracks south of the Thai capital.
"I will try to invite everybody but they have to help me solve the problem, not create another problem," he said.
Kanit, 73, headed a probe into alleged extrajudicial killings of 2,500 people during a war on drugs under ex-premier Thaksin Shinawatra, who was ousted in a 2006 coup and is idolised by many Red Shirts.
That probe was not completed but is now being reopened by Abhisit's government.


  N.Korea warns of ‘merciless’ measures against S.Korea
AFP, Seoul

North Korea warned Friday of "merciless" measures against South Korea for referring the sinking of a warship to the UN Security Council.
South Korea, the United States and other countries accuse the North of sinking the warship in March with the loss of 46 lives and are pushing world powers to censure the communist state.
North Korea accuses Washington and Seoul of a "smear campaign" to fake evidence of its involvement and says reprisals already announced by the South, including a trade suspension, could spark war.
It also warned the UN of "serious" consequences for peace if it debates the sinking without letting the North's investigators examine the evidence.
"As already declared at home and abroad, our army and people will take merciless measures," a National Defence Commission spokesman told the official Korean Central News Agency. The commission, which is controlled by leader Kim Jong-Il, is the North's most powerful decision-making body.
South Korea's foreign ministry said Friday that a team of investigators would brief UN Security Council members on the sinking in New York on Monday. The team will present evidence at the closed-door briefing, including a video clip showing North Korean torpedo parts being salvaged from the sea and forensic evidence linking the North to the sinking, it said.
After a weeks-long investigation, a multinational team said last month there was overwhelming evidence that a North Korean submarine had fired a heavy torpedo to break the warship in two in March. Seoul formally asked the Security Council last week to respond to one of the deadliest attacks since the 1950-53 Korean War.
But Russia and China, both veto-wielding members of the council, have refused to cast judgement on the investigation until they can assess the findings themselves.
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  Taliban plot to kill UK leader Cameron foiled
AFP, Kabul, Afghanistan

A Taliban plot to kill British Prime Minister David Cameron forced the cancellation of visit to a military base in southern Afghanistan, a U.K. news agency reported Friday.
The Press Association said a planned trip to a frontline base in the volatile Helmand province on Thursday did not go ahead after mobile phone calls referring to a possible rocket attack on a helicopter were intercepted.
A senior Afghan Taliban commander based in Helmand and a spokesman for the militants told NBC News that they had made all arrangements to kill Cameron and had even deployed a separate "commando squad" of Taliban fighters for this "important task."
They said they knew when the British leader arrived in Kabul that he would go to meet his troops in Helmand, NBC News said.
"The task to hit a chopper that was supposed to carry the British prime minister was given to our commando squad, specially trained for such kind of missions," the Taliban commander, who did not wish to be named, told NBC. "Even missiles were installed in various places from where we could hit his chopper," he added.
The commander said they were unable to carry out their "mission" when the trip was canceled.
Taliban spokesman Zabihullah Mujahid also made similar claims and said Cameron was "lucky."


  Taiwan court cuts former president’s jail term to 20 years
AFP, Taipei

Taiwan's high court Friday cut ex-president Chen Shui-bian's life sentence for corruption to 20 years in jail, court officials told AFP, but an aide to the former leader said he would appeal.
"We decided to reduce the sentence because we considered the amount of embezzled public funds smaller than the lower court," said chief judge Teng Chen-chiu, without elaborating.
The 59-year-old former president was convicted last year at the Taipei district court of embezzling state funds, laundering money, accepting bribes and committing forgery and was sentenced to life.
"Chen is very unsatisfied with the result from the high court and will appeal," said Chen Sung-shan, the chief secretary of Chen's office.
Taiwan's former first lady Wu Shu-chen's life conviction for graft was cut to 20 years, according to the high court.
Earlier the court had told AFP that Wu had her term reduced to 14 years.
The court also reduced a fine against Chen of 200 million Taiwan dollars (six million US dollars) to 170 million Taiwan dollars, while a fine of 300 million Taiwan dollars for Wu was cut to 200 million Taiwan dollars.
The high court met, with Chen present, in downtown Taipei amid tight security, with uniformed police guarding the court building, which was also ringed with barbed wire.
"Chen is innocent!" a group of supporters of the former president chanted outside the court.


 Iran’s Ahmadinejad blasts US, says Israel is ‘doomed’
AFP, Shanghai

Iranian President Mahmoud Ahmadinejad said Friday Israel was "doomed" and singled out US President Barack Obama for scorn after the UN agreed a fresh round of nuclear sanctions against his country.
Speaking during a visit to the World Expo in Shanghai, Ahmadinejad denounced the UN Security Council's sanctions resolution adopted Wednesday with Chinese and Russian backing as "worthless paper".
The firebrand leader accused global nuclear powers of "monopolising" atomic technology and said the new sanctions would "have no effect".
Ahmadinejad chose a visit to his country's national pavilion during "Iran Day" at the Shanghai Expo in preference to an appearance at a regional security summit in Uzbekistan attended by the Chinese and Russian leaders.
Presidents Hu Jintao of China and Dmitry Medvedev of Russia were in Tashkent Friday for the summit of the Shanghai Cooperation Organisation.
The SCO was set Friday to snub Iran's membership bid, Russian Foreign Minister Sergei Lavrov indicated, leaving Tehran increasingly isolated over its refusal to renounce uranium enrichment.
Ahmadinejad's visit to the Expo comes at a delicate time in Tehran's relations with its ally China, one of the five permanent veto-wielding members of the Security Council.
His government had earlier reacted furiously to China's decision to fall into line with the United States and other powers that accuse Iran of covertly trying to build nuclear weapons.
Ahmadinejad shied away from criticising China, which has emerged as Iran's closest trading partner.
"The main problem is the US administration, and we have no problem with others," he told reporters, accusing the United States of seeking to "swallow" the Middle East. Swatting aside the US leader's offers of dialogue and rapprochement if Iran relents on its nuclear ambitions, Ahmadinejad said: "I think President Obama has made a big mistake... he knows the resolution will have no effect.
"Very soon he will come to understand he has not made the right choice and he has blocked the way to having friendly ties with the Iranian people."


   Russia presses demands for high-tech French warships
AFP, Paris

Russian Prime Minister Vladimir Putin met with President Nicolas Sarkozy on Friday as Moscow pressed demands that French warships it wants to buy should come with high-tech equipment.
The sale of the Mistral-class assault ships is widely seen as France's most ambitious bid yet to reach out to Russia, but negotiations have stumbled, notably over Moscow's demands for a transfer of technology. The deal would be the first sale of advanced military hardware to Russia by a NATO country.
Speaking in central Paris at the opening of a big exhibition showcasing Franco-Russian cooperation, Putin said France and Russia must work together to keep their competitive edge in science and technology.
"The world is going through a difficult time and we have to stand together to remain competitive," Putin said at the event, standing alongside Prime Minister Francois Fillon.
"In scientific and technological areas, we must unite our efforts," he said before heading to the Elysee palace for talks and lunch with Sarkozy.
Putin told AFP in an interview on the eve of his visit that a deal on the Mistral, now under negotiation for more than five months, is possible only if the vessel comes equipped with cutting-edge technology.
France has said it will not lump sophisticated navigation systems and other sensitive technology into the deal for the ships, that cost about 500 million euros (600 million dollars) each. "For us the most important thing is to buy technology.
That is the future," reiterated Russian Industry Minister Viktor Khristenko on Friday.
The sale of the Mistral warships, which can carry 16 helicopters and a 750-strong landing force, has also run into complications over Moscow's insistence that three of the four vessels be built in Russia.
"For us, this deal is interesting only if it is accomplished with a parallel transfer of technology," Putin told AFP.


  UN talks on climate head into final day
AFP, Bonn

A new round of UN talks entered its final day on Friday amid hopes that a proposed negotiation blueprint for a post-2012 climate treaty would survive anger and suspicions lingering from last December's Copenhagen summit.
The document is being gingerly presented as a summary of the many-and often hugely contradictory-views in the 194-nation arena about what the much-trumpeted pact should contain.
If approved, it would form the basis of haggling over an historic accord to curb greenhouse gases and channel hundreds of billions of dollars to poor countries most at risk from climate change.
But delegates feared there was a risk that the tentative draft could come under fire at a plenary session on Friday, where parties to the UN Framework Convention on Climate Change (UNFCCC) were wrapping up their 12-day session.
The talks in Bonn are the mid-way point to the next big UNFCCC gathering, taking place in Cancun, Mexico, from November 29 to December 11.
The document puts forward a range of goals for cutting greenhouse gases, including the idea of slashing emissions by as much as 85 percent by 2050 compared with 1990 levels. But these aims are not unanimously shared, and there is likely to be furious debate over how to share out the burden and how commitments should be scrutinised and enforced.
In addition, the text still has big gaps, including the legal status of the post-2012 treaty.


  Russia signals halt on Iran missile sale
AFP, Moscow

Russia signalled Friday it was moving to halt its controversial sale of air defence missiles to Iran, in a policy shift the Kremlin said was needed after fresh UN sanctions over Iran's nuclear drive.
"S-300 supplies to Iran fall under UN sanctions," a Kremlin source said, referring to the mobile anti-air defence system Russia has long planned to deliver to the Islamic republic.
"Thus this type of weapon cannot be delivered to Iran," said the source, speaking on condition of anonymity on the sidelines of a regional security conference in Tashkent attended by President Dmitry Medvedev.
In a flurry of statements, a number of other senior Russian officials indicated that Moscow was changing tack on the missile deal, in the pipeline for years but strongly opposed by Israel and the United States.
"We will strictly and unswervingly follow the criteria and requirements in the resolution" Deputy Foreign Minister Sergei Ryabkov said in a statement posted on the foreign ministry website.
Separately, Konstantin Kosachev, the chairman of the State Duma's foreign affairs committee whose public pronouncements are known to reflect Kremlin policy thinking, said the S-300 sale had to be stopped.
"In the circumstances, I am opposed to fulfilling this contract," Kosachev said in remarks posted on his Internet blog and picked up by Russian media.
He noted that that the UN resolution adopted Wednesday imposing fresh sanctions on Iran did not ban the sale of defensive weapons systems like the S-300 complex to the Islamic state.
But going ahead with the deal, long in the works, would "breach the spirit" of the resolution and should not happen, he said.
A senior Kremlin official with Medvedev in Tashkent said documents were being drawn up specifying exactly which types of weaponry could still be sold to Iran and which types were barred as a result of the latest UN sanctions.
The S-300 missiles were "likely" to be on the official Russian list of banned items, the official said.


  Sanctions unlikely to slow Iran’s nuclear drive: Experts
AFP, Washington

The harshest UN sanctions ordered against Iran so far may fall short in their aim to curb the Islamic republic's nuclear ambitions and secure further transparency, experts warned.
In the short term, the measures will make it more difficult for President Barack Obama and the other international leaders to achieve their goals, said Daryl Kimball, executive director of the Arms Control Association.
He also expressed doubts for the long-term objectives to persuade Iran to halt uranium enrichment for its suspect nuclear program, which the West fears is a bid to produce nuclear weapons despite Iran's insistence otherwise.
The United States should not have dismissed the nuclear fuel swap deal that Brazil and Turkey agreed with Iran last month, Kimball said, calling the plan "an interesting starting point."
In announcing agreement on a draft for the latest round of sanctions just a day after Turkey and Brazil announced their plan, Washington and its allies also rebuked the very diplomatic path they claim to support, the expert added.
In the end, Turkey and Brazil-both non-permanent members of the 15-state Security Council-voted against the sanctions while Lebanon abstained.
Those votes will encourage the Iran to respond "with more defiance and bluster," said James Lindsay, senior vice president of the Council on Foreign Relations think-tank.
The fourth round of UN sanctions against Iran bars Tehran from sensitive activities such as uranium mining and authorizes states to conduct high-sea inspections of vessels believed to be ferrying banned items for Iran.


  Mexico officials backtrack on explosives claim
AP, Mexico City

Mexican officials on Thursday rejected claims that the nation's navy had seized a cache of powerful explosives in a boarding house in the nation's capital.
What marines at first thought was nitroglycerine - a dangerous explosive - turned out to be glycerin - a harmless moistening agent for things like cookies and shampoos - according to the federal Attorney General's Office.
Mexico's navy announced a day earlier that marines had raided a hostel in the bohemian Roma neighborhood and seized 45 pounds (20 kilograms) of powerful explosives. It credited U.S. officials with giving information that helped lead to the raid, which officials said might be linked to organize crime.
The four people arrested in the raid were released on Thursday, said Marisela Morales of the Attorney General's Office. She said investigators determined that the combination of chemicals seized could not have been used to make an explosive device. In addition to glycerin, the marines had seized nitric acid and paraffin.
The navy said Thursday that it had no comment on the case. Meanwhile, the Defense Department released more details about charges filed against the Zetas drug gang's purported regional leader for Monterrey, who was captured late Wednesday.


  Israeli border guards kill Palestinian after car hits them
AFP, Jerusalem

Israeli border guards shot dead a Palestinian man on Friday after he struck two of them with his car in mostly Arab east Jerusalem, police and Palestinian medics said.
"The man struck two members of the border guard with his car, lightly wounding one of them and more seriously wounding the other," Jerusalem police spokesman Shmulik Ben Rubi said.
He said the border guards then shot him "after he fled on foot and did not heed warning shots," without saying whether the man had died or not.
Dr Amin Abu Ghazaleh of the Palestinian Red Crescent Society said one man was killed and two others were wounded in the incident.
Israeli police had earlier gone on high alert in and around the Old City in east Jerusalem, fearing violent protests in the wake of the deadly seizure of a Gaza-bound aid flotilla by naval commandos that sparked international outrage.
They also limited access to the city's flashpoint Al-Aqsa mosque compound to men over the age of 40 and women and children ahead of Friday prayers.
It was not immediately clear if Friday's violence had any political motive.
The mosque compound, located in the Old City, is the third most sacred site in Islam. It was there that Arab anger over a visit by then Israeli opposition leader Ariel Sharon sparked a Palestinian uprising in 2000.
Clashes erupted across mostly Arab east Jerusalem in March over the reopening of a 17th century synagogue a few hundred metres (yards) from the mosque and rumours that Jewish extremists planned to destroy the compound. Israel occupied east Jerusalem in the 1967 Six-Day War and annexed it to its capital in a move not recognised by the international community.

   

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Business/Economy

Japan PM warns ‘risk of collapse’ from debt mountain
AFP, Tokyo

Japan's new Prime Minister Naoto Kan on Friday pledged a fiscal policy overhaul to reduce the country's massive public debt mountain, warning of a Greece-style meltdown.
"Our country's outstanding public debt is huge," the centre-left leader said in his first policy address since taking office Tuesday. "Our public finances have become the worst of any developed country."
After decades of stimulus spending and feeble tax receipts, Japan's public debt is now nearly double its gross domestic product, forcing the government to issue ever more bonds to pay for hefty outlays.
"It is difficult to continue our fiscal policies by heavily relying on the issuance of government bonds," said Kan, the former finance minister.
"Like the confusion in the eurozone triggered by Greece, there is a risk of collapse if we leave the increase of the public debt untouched and then lose the trust of the bond markets."
Kan has in the past advocated increasing Japan's sales tax, although he has not specified plans that may prove unpopular with voters ahead of upper house elections planned for July 11. "It is unavoidable to launch a full reform of the tax system," he said, also calling for the establishment of a bipartisan panel "to review fiscal rehabilitation and engage in constructive debate together".
"If we maintain the current level of issuance of new bonds, outstanding debt will surpass 200 percent of GDP in a few years," he said.
Pledging to revitalise the world's second biggest economy after its long stagnation, Kan said: "The duty my cabinet must meet is to break the standstill that has lasted for nearly 20 years and create a vigorous Japan."
He targeted average real GDP growth of two percent a year until 2020.
Kan said his government would announce a growth strategy by the end of June to promote green technology, encourage exporters to find new markets in emerging Asian countries and support tourism.
"It's been 20 years since the collapse of the bubble economy in the early 1990s. Because the Japanese economy had been in the doldrums, people have lost the trust they had and fear the uncertainty of the future," he said. Kan also promised to revive the spirit of his centre-left party, which in elections last year ended a half-century of conservative rule but saw its first premier resign after less than nine months in office.
"My biggest duty is to go back to the starting point of the historic power change, overcome the setback and regain the people's trust," Kan said, admitting that "early expectations of the government were rocked massively".
Kan took over from Yukio Hatoyama, who resigned over damaging money scandals and after giving in to Washington and reneging on an election promise to move an unpopular US airbase off the island of Okinawa.
Reiterating earlier comments on foreign policy, Kan said he would "strengthen relations with Asian countries while regarding the Japan-US alliance as the cornerstone" of Japan's diplomacy. He stressed that US ties safeguard "stability and prosperity in the Asia-Pacific".
Kan said he would stick by Tokyo's agreement with Washington to relocate the contentious Futenma marine airbase within Okinawa.


 Eurozone instability ‘greatest threat’ to Britain’s recovery: Clegg

AFP, Madrid

Economic sluggishness and instability in the eurozone is the "greatest threat" to Britain's own economic recovery, British Deputy Prime Minister Nick Clegg said on Friday during a visit to Spain. "Our economies are interwined. Other EU countries are the UK's biggest trading partnets by some distance-around half of all our exports go to the EU and over half our inward investment comes from there," he said.
"That means that economic and financial difficulties in the eurozone directly affect Britain. Indeed continuing instability and a lack of growth on our doorstep is the greatest threat to our own economic recovery.
"Quite simply slow growth in the eurozone means fewer British exports, slower British growth, fewer British jobs," he told an conference in Madrid.
Clegg said that the 27-nation European Union could boost economic growth by "fully" implementing existing single market legislation and extending the single market to new areas such as the digital economy.
"The economic gains from full implementation of the single market are estimated to be worth over two percent of EU GDP," he said.
British economic growth picked up to 0.3 percent in the first quarter as a weaker pound helped exports but there are concerns that any overly drastic spending cuts could jeopardise the gains and tip back into recession.
But Clegg said although reducing Britain's deficit was the British government's "number one priority", it was "vital that we protect and promote sources of growth."


  China's currency policy threatens global reforms : US
AFP, Washington

US Treasury Secretary Timothy Geithner said Thursday that China's refusal to revalue its currency impeded global economic reforms, as he faced calls from lawmakers for retaliatory action.
"The distortions caused by China's exchange rate spread far beyond China's borders and are an impediment to the global rebalancing we need," Geithner told a congressional hearing on the US-China economic relationship.
Under the rebalancing effort, global leaders have agreed that steps should be taken to strike a balance between the huge trade surpluses in Asia and a massive buildup of debt in wealthier countries.
"Reform of China's exchange rate is critically important to the United States and to the global economy," Geithner said, addressing US lawmakers' complaints that Beijing keeps the yuan undervalued against the dollar for a trade advantage.
Facing election-year pressure, lawmakers from both sides of the political aisle have vowed to launch legislative action in two weeks to punish China over its currency policy, which they say has led to massive job losses and factory closures in the United States and fueled a ballooning trade deficit.
Geithner said it was "very important for China to understand" that the legislative move enjoyed "very broad bipartisan support."
Lawmakers on Thursday also sent a petition to the US Department of Commerce calling for investigations into the impact of alleged Chinese currency manipulation on the American paper industry.


  India’s industrial output up 17.6 pc
AFP, Mumbai

India's industrial output grew a better than expected 17.6 percent year on year in April, data showed Friday, adding pressure on the central bank to raise interest rates again to tame inflation.
India's growth in recent months has been led by manufacturing and services as consumer demand continues to improve after the global downturn. Factory output jumped 19.4 percent, while mine production grew 11.4 percent and utilities six percent, in the eighth straight month of double-digit expansion. Analysts had forecast monthly growth at near 13 percent. Official data showed production of capital goods surged 72 percent, while consumer durables such as whitegoods rose 37 percent in the same period. Analysts expect said the Reserve Bank of India (RBI) will gradually raise rates but said immediate action was unlikely.
However, it is thought the bank will announce a hike in its July review, as inflation, including food prices, causes concern.
India's annual inflation cooled slightly in April to 9.59 percent, from 9.9 percent the previous month, but is well above the RBI's projected rate of 5.5 percent by March 2011. Annual inflation data for May is due next Monday. Earlier this week, annual food inflation rose to 16.74 percent, as the cost of pulses, potatoes and fruits rose. "We could see gradual tightening of rates, as inflation is higher than expected," said Mridul Saggar, chief economist with Kotak Securities.


  Hasty finance market regulation could hurt growth
AFP, Vienna

Some of the world's leading finance officials warned here Thursday that hasty moves to regulate financial markets could harm global growth.
"It will be important to consider carefully the content, the timing and the calibration of the reforms in order to achieve the right balance between stability and growth," Deutsche Bank head Josef Ackermann told a meeting of the Institute of International Finance (IIF), of which he is also the president.
The Washington-based IIF groups 400 banks operating in more than 70 countries.
A report from the institute released Thursday hailed recent efforts by governments to reform financial markets but cautioned that worldwide economic momentum could suffer as a result. It said the reforms proposed to date under an agreement known as Basel III, formulated in December by the Basel Committee on Banking Supervision, could trim growth by 0.6 points a year on average in the United States, the eurozone and Japan from 2011 to 2015.
The tighter regulations could also prevent the creation of 9.73 million jobs in the three economies between now and 2015 and 10.12 million by 2020. "There is a price for making the banking system safer and more stable, and that price will inevitably be borne by the real economy," said Peter Sands, Standard Chartered bank chief executive.


  Wall Street rally pushes Asian markets higher
AFP, Hong Kong

A rally on Wall Street helped Asian markets higher on Friday as optimism in the global economy returned, while the euro held on to recent gains. Comments from the head of the European Central Bank gave dealers the impetus to seek more risky assets, although leading economists warned there were still lingering concerns over the continent's debt. The Nikkei rose 1.70 percent, or 162.60 points, to 9,705.25 as the weakening yen, caused by a flow of funds out of safer currencies, lifted exporters.
Sydney gained 1.58 percent, to 70.2 points, to close at 4,505.5, while Hong Kong added 1.22 percent to end 239.68 points higher at 19,872.38. "Appetite for risk is certainly back," RBS head of Sydney sales trading Justin Gallagher told Dow Jones Newswires.
Wall Street gave a strong lead, with the Dow surging 2.76 percent on upbeat data out of Asia on Thursday that showed Japan's economy growing quicker than initially thought, Chinese exports soaring and Australian unemployment falling. Markets were also given a lift after ECB chief Jean-Claude Trichet said "the euro is credible, keeps its value and is a major asset for domestic and exterior investors." The dollar rose to 91.62 yen in Tokyo afternoon trade from 91.32 in New York late Thursday. The euro eased to 1.2110 dollars from 1.2122 but firmed to 110.90 yen from 110.71. The single currency was lifted in New York by growing confidence in the markets, which has led dealers out of safer investments. It is well off multi-year lows seen at the start of the week. "The euro gained the most versus the US dollar in two weeks as market-friendly comments by Trichet helped soothe frayed investor nerves about the eurozone debt crisis," said analyst Samarjit Shankar of Bank of New York Mellon.
However, billionaire investor George Soros warned the euro crisis was only entering the second phase while respected economist Nouriel Roubini called for the ECB to cut its policy rate to zero to offset the negative impact of fiscal austerity. In Shanghai shares closed 0.29 percent, or 7.36 points, higher at 2,569.94. The index pared earlier gains after Beijing revealed consumer prices rose 3.1 percent year on year in May, up from 2.8 percent the previous month and higher than the its target three percent. The data has potentially put pressure on Beijing to hike interest rates to prevent the world's biggest economy form overheating.
But new loans issued by Chinese banks eased last month, suggesting some of the government's efforts to cool spending were starting to work.


  80pc of Greeks fear social unrest
AFP, Athens

As many as 80 percent of Greeks fear the economic troubles in the country could trigger social unrest, according to an opinion poll published Friday in Greek newspaper Kathimerini.
And the poll showed little optimism for the days ahead, with 69 percent expecting the economic situation to get worse and only 12 percent expecting it to get better.
Last month, Athens agreed a rescue package worth 110 billion euros (US$133 billion) with the European Union and International Monetary Fund to cover its debt obligations, on condition of a string of austerity measures to reduce spending.
According to the poll, carried out by think tank Public Issue surveying 1,019 people between June 2-7, 72 percent thought the economy was "going in the wrong direction".
Despite the negative mood, approval of the left-wing Pasok party, in power since October 2009 and the architect of the austerity measures, was at 45 percent against 27 percent for conservative opposition, New Democracy.
The prime minister and president of Pasok, Georgios Papandreou, was considered by 41 percent as the man most capable of leading the country, against opposition leader Antonis Samaras who received 18 percent.
However 40 percent lacked confidence in either leader.
Papandreou remains the most popular politician in the country (53 percent), followed by Samaras (44 percent). Both have seen their popularity drop by more than 10 points over the past two months.


  Japan’s new govt plans to cut corporate tax
AFP, Tokyo

Japan's new government plans to cut corporate tax closer to international norms as it tries to haul Asia's biggest economy out of a long slump, the economy minister said in a report Friday.
The government is aiming to cut tax on company earnings by five percentage points next fiscal year, from an effective 40 percent now, the Nikkei business daily quoted Economy, Trade and Industry Minister Masayuki Naoshima as saying.
"It's a fact that international corporate tax rates are 10 to 15 points lower than Japan's," said Naoshima, who is part of Prime Minister Naoto Kan's new cabinet sworn in this week.
"Over the medium term, the government will aim to bring the rate down to around the global standard," he said. Japan has the industrialised world's highest levels of debt, and Naoshima said an enduring economic expansion would lead to higher tax receipts that in turn would make social security programmes sustainable.
"It is now the time to decide (on cutting corporate tax) for the sake of future economic vitality, employment and securing increased tax revenues," the minister said.
"Japan's economy has basically been in a slump for the past 20 years and people have been overwhelmed by a sense of stagnation."


  US budget deficit shrinks
AFP, Washington

The US government's budget deficit shrank 28 percent year-on-year to 135.93 billion dollars in May, the Treasury Department said Thursday. The deficit was the 20th consecutive month of federal red ink. The latest data brought the deficit for the first eight months of the federal government's 2010 fiscal year ending September 30 to 935.61 billion dollars -- 53.35 billion dollars less than the previous year.
Revenue fell in May to 146.80 billion dollars from April but expenditure also dipped, to 282.72 billion dollars, the Treasury figures showed. The May deficit figure was lower than the 142 billion dollars expected by most economists as well as the Congressional Budget Office, a nonpartisan agency that provides economic data to lawmakers.
Given the "minor differences" between the CBO and actual data, there should be limited market reaction, Briefing.com analysts said in a note to clients. The White House had warned earlier this year that the deficit for the 2010 fiscal year could swell to 1.555 trillion dollars, eclipsing the prior year's record of 1.415 trillion dollars.


  ECB's Trichet praises Greek economic reform efforts
AFP, Vienna

The head of the European Central Bank praised Greek efforts to get its finances in order in a speech in Vienna Thursday in which he reviewed the economic situation in Europe. Greece had started to implement the ambitious programme of economic reforms agreed with the International Monetary Fund and the European Commission, said ECB president Jean-Claude Trichet.
"This programme itself is an important achievement," he added. "It is based on prudent macroeconomic assumptions... It has the potential to correct long-standing flaws, because it entails a very comprehensive structural reform package."
The IMF, the Commission and the ECB would make regular visits to Athens to assess progress, he said.
But he added: "We consider that the Greek programme has the appropriate features to succeed... we have indications that the budget execution in Greece in the first five months of 2010 -- despite a painful recession-is on track.
"The central government cash deficit is more than 40 percent below the level over the same period last year."
Reviewing the rest of Europe, Trichet noted: "We see encouraging signs in other countries too."


  Banks must use profits to boost shock buffers
AFP, Vienna

Banks should use profits generated recently to enhance their shock buffers, as the overstretched state is likely to be less willing to help them in case of further stress, a top regulator said on Friday.
"Public sector finances have been stretched and must be consolidated. There is no public sector appetite to engage in the types of banking sector support measures of the past three years," said Nout Wellink, who is chairman of the Basel Committee on Banking Supervision.
"Banks therefore must use their return to profitability-which is due in part to public sector support-to boost capital and liquidity buffers," he said.
"Significant risks remain in the economy and the financial system, and it would be unacceptable if banks did not use this opportunity to bolster their resilience to future shocks," added Wellink, who also heads the Dutch central bank.
After two dismal years in the financial crisis when massive losses were reported by many top international banks, state bail-out packages have helped to return these ailing banks to profitability.
Wellink pointed out however that while they are now making money again, many banks "have not done enough to rebuild their capital buffers to support new lending activity."
The committee headed by Wellink's group of leading central bankers and national regulators is aiming to introduce proposals to strengthen international financial requirements on banks by the end of 2012.
They include tougher minimum capital and liquidity requirements.
The Basel Committee is also reviewing other possible measures on "systemically important institutions", banks that are big enough to have an impact on whole economies and the rest of the financial system if they run into trouble.


  US casino cheating expert knows all the tricks of the trade
AFP, Macau

Sal Piacente is a casino security firm's worst nightmare.
The native of Brooklyn, New York-whose business card describes him as 'The Hitman'-has seen every casino scam and promises he can pull a sleight of hand so fast that even cameras trained on a blackjack table are useless.
Inside the booth of a major security firm at Global Gaming Expo Asia, which kicked off in Macau this week, Piacente shuffles a deck of cards in full view of the camera and then pulls out the promised ace, leaving staff stumped. "That was incredible," said one employee. "That wasn't even the good stuff," said Piacente, 46, head of UniverSal Game Protection Development.
Cheating has emerged as a serious problem for Macau, a former Portuguese colony and now the world's biggest casino market with about 14.5 billion US dollars in gaming revenue last year, outpacing Las Vegas.
There are no reliable figures to gauge the cost of cheating to casinos, Piacente said, but he warned that the gambling powerhouse needs to take staff training seriously if it wants to tackle the growing problem.
"This is big money here," said the 25-year casino industry veteran, draped in a chunky gold necklace, bracelet and diamond ring.
"And the industry is growing so fast that it's hard to find good help. A properly trained employee will beat a million dollar system every time."
Industry analyst Jonathan Galaviz agreed it was key for operators to constantly assess their weak spots and devote resources to the problem-many scams involve dealers pulling an inside job with crooked gamblers.
"(Casinos) have to identify where the leaks are and what resources are required to plug those leaks," he told AFP.
"Cheaters will always be one step ahead so it's important for the industry not to fall two steps behind."
And now cheaters have cutting-edge technology, such as mini-cameras, that make mirrors and other basic cheats used throughout history look outdated.
"There aren't too many new scams but the technology has changed," Piacente said. The false shuffle-keeping an ace palmed in your hand-or using a card to knock a chip off the table in the case of a bad hand without detection are still most cheaters' tricks of choice.
"The false shuffle is the ultimate-it's the simplest and the hardest," he said
Piacente concedes he is impressed by some cheaters' skills.
"Sometimes I'll say 'damn, that guy was good' but other times I think they should just get sentenced for their lack of skill."
"I always knew how to cheat," he added. "I just never did."


  French official inflation slows in May, 1.6pc in year
AFP, Paris

French consumer prices rose by 0.1 percent in May, a slower rate than in April, putting 12-month inflation at 1.6 percent, official data showed on Friday.
The latest small monthly increase was driven mainly by energy prices, although the 12-month figure fell from 1.7 percent in April.
Economists said they did not see strong inflationary pressures for the next few months, but said that the monthly increase would further erode slightly the buying power of French consumers, already suffering from the economic crisis and unemployment.
In April, prices on a monthly basis had risen by 0.3 percent. At consultants Xerfi, economist Alexander Law commented: "Household consumption will have difficulty in getting a second wind given that it has been under big strains since the beginning of the year.
"But this does not mean that we fear inflationary tensions in the next few months."
Analysts at BNP Paribas commented that the data showed that underlying inflation, excluding energy prices, had fallen again in May to 1.4 percent.

  

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National

Major rivers again mark sharp rises in Brahmaputra basin
BSS, Rangpur

The major rivers again marked sharp rises in the Brahmaputra basin following huge onrush of hilly waters from the upper catchments amid scattered rains during the
past 24 hours till Friday morning, official sources said.
With the frequent rises and falls in the water levels in recent weeks, sporadic erosion devoured some riverside lands and thatched houses in Chilmari, Roumari, Rajibpur and Ulipur upazilas of Kurigram, Shaghata and Fulchhari upazilas in
Gaibandha, locals said.
Sources in the Water Development Board (WDB) on Friday told BSS that some riverside lands with unstable and sandy soil-texture have been devoured in recent weeks at fewer places and the erosion situation is still remaining under full control everywhere.
The WDB and district administrations are closely monitoring the situation and taking all necessary precautionary measures throughout the courses of the Teesta, Brahmaputra, Jamuna and Dharla rivers to contain erosion, if any, the official sources said.
The Brahmaputra marked a very sharp rise by 49cm during the past 24 hours and was flowing at 23m, which was 203cm below its danger mark (DM) at Chilmari point in Kurigram at 6 am on Friday. The same river also marked another sharp rise by 51cm and was flowing at 24.49m, at Noonkhawa point in Kurigram on Friday morning, 276cm below its DM.
The Dharla marked a sharp rise by 32cm during the period and was flowing at 24.93m at Kurigram point on Friday morning, 157cm below its DM on Friday.
The Ghaghot sharply rose by another 53cm and was flowing at 20.40 cm, 130 cm below the DM at Gaibandha at 6 on Friday morning.
The Jamuna marked sharp rises by 24cm, 23cm and 13cm at Bahadurabad, Sirajganj and Aricha points during the period and was flowing 103cm, 124cm and 230cm below its respective DMs at these points at 6 am on Friday morning.
The Teesta also marked a rise by 5cm during the past 24 hours and it was flowing 60cm below its DM at Dalia point in Dimla upazila of Nilphamari district at 6am on Friday, the WDB officials said.
The WDB sources said the quantum of onrushing waters from the upper catchments substantially increased causing rises in the water levels of the major rivers at most points in the Brahmaputra basin during the past 24 hours with no flood situation anywhere.
The WDB recorded only 38mm rainfall at Kawnia, 4mm at Dalia, 25.5mm at Chilmari, 27.3mm at Kurigram and 3mm at Panchagarh points during the past 24 hours till 6 Friday morning.


  Sound coordination between govt level dev agencies stressed

BSS, Rajshahi

Sound and intensive coordination between the government level developments agencies is very vital for cherished infrastructural and different other developments including socio-economic of the city.
Some vital issues especially actual development of the metropolis along with its service-delivery activities, communication, fire control, natural disaster management and drug control need to be addressed collectively.
Mayor of Rajshahi AHM Khairuzzaman Liton made this observation while presiding over a review meeting of various uplift programs being implemented by the government organizations including the Rajshahi City Corporation in the City Bhaban seminar hall in Rajshahi on Thursday.
He also said importance should be given to implementing the works of policy formulation, program undertaking and execution of those concertedly.
After reviewing the progress of the undertaken programs, he said if the follow-up programs were implemented collectively pace of work will increase, standard of service will be developed and misuse of money will be reduced as a whole.
RCC Panel Mayor Sazzad Hossain and ward councilors Abdul Hamid Sarker Tekan, Ansar Ali, Moniruzzaman Bablu and Abdus Sobhan, Chief Executive Officer Ajahar Ali, Chief Engineer Sirajum Munir, Chief Revenue Officer Syeda Jebunnessa Sultana and Chief Health Officer Dr Abul Fazal, commissioner of Rajshahi Metropolitan Police Naosher Ali, Deputy Commissioner Dilwar Bakhth, general manger of Bangladesh Railway of West Zone Anhar Mahmud, chief engineer of PDB Arzad Hossain, additional chief engineer of Public Works Department Aminul Islam, additional chief engineer of Roads and Highway Abdul Gaffar, superintending engineer of Department of Public Health Abul Bashar, regional director of BSCIC Nikhil Chandra Shaha, executive engineer of Education Engineering Department Mosharraf Hossain, deputy director of Fire Service Mijanur Rahman, chief executive officer of Rajshahi Development Authority Abdur Rahim and secretary of Rajshahi Education Board Prof Tanweerul Alam were, among others, present at the meeting.

  

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Sports

African dance fills stadium at World Cup opening
AFP, Johannesburg

Hundreds of dancers filled Soccer City with the sights and sounds of Africa for the World Cup opening ceremony on Friday, representing the six nations on the continent competing in the tournament.
The stadium, the largest in Africa, buzzed with the sound of thousands of vuvuzela trumpets as five jets flew overhead, but the stands were only partially full as many fans battled gridlock traffic to reach the venue. Nobel laureate Archbishop Desmond Tutu danced in the stands, wrapped in a yellow and green scarf and beanie hat to support the Bafana Bafana national side in their later match against Mexico.
South Africa's first black president Nelson Mandela had been expected to attend, but he cancelled at the last minute following the tragic death of his 13-year-old great granddaughter in a car accident during the night.
But he delivered a videotape message spliced into one of the songs, welcoming the World Cup to South Africa and imploring fans "to overcome all adversaries". A traditional African praise singer in animal skins opened the 40-minute show, as dancers lined up along the compass points indicating the eight other host cities around South Africa.
A giant dung beetle puppet pushed across the pitch an oversize version of the official World Cup football, as dancers then unfurled stretches of cloth to make a map of Africa, with footprints showing the migration of humankind across the continent.
South Africa's legendary trumpeter Hugh Masekela and American R-and-B star R Kelly headlined the event that included 1,500 performers showcasing music and dance from the six African countries participating in the tournament.
A baobab tree sculpted out of flags from the six nations sprouted out of centre field, giving a stage to Algerian pop star Khaled and Nigeria star Femi Kuti. The Cameroon national ballet performed as did Ghanaian band Osibisa.
R Kelly was joined by the Soweto Spiritual Singers to perform his hit "Sign of Victory", before the 32 competing teams were announced with cut-outs of their flags spinning on the field.


  Cannavaro wants Italy to rediscover catenaccio
AFP, Irene

Italy captain Fabio Cannavaro said on Friday that the reigning world champions need to rediscover their traditional defensive strengths if they are to compete for honours at the World Cup. Italy begin their Group F campaign against Paraguay in Cape Town on Monday amidst much uncertainty about their recent form, particularly defensively.
Cannavaro, 36, has just come off a poor season with Juventus for whom fellow Italy back-five starters Giorgio Chiellini and Gianluigi Buffon also play.
It has left many people in Italy feeling worried that the country's football team has lost its ability to keep things tight at the back, as past teams always did, employing the famous catenaccio tactic. And the captain knows that he and his team-mates will need to rediscover their roots if they are to go far here. "Defence is vital but that doesn't mean we'll stay in our own half of the pitch," he said from Italy's base here just south of Pretoria.
"It means being compact. We'll never play an attacking game like Brazil, Portugal or Spain but they'll never be able to defend like us. "In 2006 we had played for two years with practically the same players. This year it's different, there are new ones, there's been changes. That's normal because there's a new generation. "The men are different but as for defensive organisation we've seen that if teams are compact they can go a long way. "That's something we've lost these last few years and we'll try to get it back.
"The coach (Marcello Lippi) is trying to work things out and he'll decide on Sunday (how we'll play). "He needs to try things, that's normal. I don't yet know how we'll play but he'll find the solution."
Cannavaro not only admitted that Italy's defence isn't what it once was but also accepted that as a side they no longer have any superstars. Italy once had players of the quality of Roberto Baggio, Francesco Totti and Alessandro Del Piero in their team, but no more. Even so, the captain believes they do have those who can make a difference.
"Unfortunately Italian football doesn't have a player of this high profile and hence the coach has had to go for other options," he added. "But a superstar is not just about technique, it's also about how a player can get his team out of certain situations in a match. "And we've got players who can do that like (Antonio) Di Natale, (Vincenzo) Iaquinta or (Alberto) Gilardino.


   Murray row overshadows day of shocks
AFP, London

Andy Murray was involved in a furious row with Queen's Club officials after the defending champion's third-round clash with Mardy Fish was suspended on Thursday with the match on a knife-edge.
With night drawing in at the pre-Wimbledon warm-up event, Murray looked on course for a gritty victory as he fought back from 3-0 down to level the final set.
The momentum was with the world number four but, with the time approaching 2030 local time, Fish walked over to umpire Cedric Mourier to insist it was too dark to carry on.
After a brief conversation, the American made his way off the court without a word to Murray, who stood open-mouthed at the baseline.
Murray then stalked towards Mourier and engaged in a lengthy diatribe. Supervisor Tom Barnes was called onto court and the Scot continued his complaint but it was to no avail as the match was postponed until Friday. "Mardy says he doesn't want to play so we stopped playing.
The referee didn't consult anyone," Murray said. "He was happy to play at 3-1. The only reason he wanted to stop was because it was 3-3. This is absolutely ridiculous."
Murray's blast was the final moment of drama on a remarkable day of shocks in west London. Rafael Nadal edged into the last eight, but four-time winner Andy Roddick and second seed Novak Djokovic crashed out.
French Open champion Nadal had things his own way throughout the claycourt season, but the world number one, who had to call for an injury time-out at one set all, was pushed to the wire in a gruelling 7-6 (7/4), 4-6, 6-4 third-round win over Denis Istomin. Nadal was quick to play down concern over his injury and said: "I'm feeling very good. I just felt something behind the leg and I wanted to check with the physio if it's something dangerous or not.
"It wasn't an easy match for me. The day was difficult too, with a lot of wind."
Israel's Dudi Sela beat world number seven Roddick 6-4, 7-6 (10/8) and world number three Djokovic was ousted 6-3, 4-6, 6-2 by Belgium's Xavier Malisse.
Marin Cilic, the Croatian fifth seed, also went down 7-6 (7/2), 6-2 against Michael Llodra. A rain delay at 4-4 didn't help Nadal's rhythm and the Spaniard had to strain every sinew to finally subdue his resilient opponent in the first-set tie-break.


  Powell unsatisfied despite year-best run
AFP, Rome

Jamaica's Asafa Powell maintained his superb form over 100 metres by setting a year-best time of 9.82sec at the Rome stop of the Diamond League here on Thursday.
The 27-year-old Olympic bronze medallist had previously set the best time of the season with a 9.83sec run in Ostrava, Czech Republic on May 27 and said he was disappointed not to have gone faster in the Italian capital.
"I had a problem at the start and then in the last bit," said a rueful Powell, who ran 9.72sec with an illegal tailwind in Oslo last week.
Powell's performance on a cold night in Ostrava was technically more impressive than his showing in Rome, where warmer weather and a slight tailwind should have made quicker times easier to come by. French pair Christophe Lemaitre, who is 20 on Friday, and Martial Mbandjock finished second and third in the same time, 10.09sec.
Powell's compatriot Shelly-Ann Fraser, the world and Olympic champion over 100m, did not share her countryman's good fortune at the Stadio Olimpico after being disqualified for a false start in her race.
America's Mikkele Barber had suffered the same fate just two minutes earlier and with false starts automatically provoking disqualification this season, both women were forced to leave the track.
Barber's American team-mate Lashauntea Moore eventually claimed the honours in a time of 11.04sec.
Jeremy Wariner, Olympic 400m champion in 2004 and a silver-medallist in Beijing two years ago, recorded an eye-catching 44.73sec in his event after edging American compatriot Angelo Taylor in a tightly contested race.
Elsewhere, Moroccan 21-year-old Halima Hachlaf maintained his country's fine tradition in the 800m by beating Kenya's Janeth Jepkosgei in a time of 1:58.40. In the women's high jump, Croatia's Blanka Vlasic trumped rising American star Chaunte Howard-Lowe despite competing on a surface that she described as "too soft" for her liking in the build-up to the event.
Vlasic's 2.03m was enough to defeat Howard-Lowe, who set an American record of 2.04m earlier in the season.
Howard-Lowe's countryman Dwight Phillips, the three-time world champion, set the year's best mark in the long jump with a winning jump of 8.42m. Kenya's Augustine Kiprono Choge took the honours in the 1500m, meanwhile, with a time of 3:32.21. Lashinda Demus of the USA set the fastest time of the year in the women's 400m hurdles (52.82sec), while Kenyan Milcah Milcah Chemos Cheiywa's 9min 11.71sec in the 3,000m steeplechase was the best mark of 2010 in her event.


  Messi can match Maradona
AFP, Pretoria

Argentina coach Diego Maradona on Friday expressed his belief that Barcelona's Argentinian superstar Lionel Messi can emulate his own achievements from 24 years ago.
Argentina begin their Group B campaign in Johannesburg today against Nigeria, ironically the team against whom Maradona made his international swansong at the 1994 World Cup.
But it is for his exploits in 1986 when he almost single-handedly won the World Cup that Maradona is most remembered and the 49-year-old believes Messi can be every bit as influential this time as he was back then. "I would love to see that, I certainly would appreciate it if he had the same impact on the World Cup as I had in 1986," he said.
"But I think behind Lionel there's a whole team that should back him up and he should be the cherry on the cake.
"But when you look at the team of '86 and what they achieved, it wasn't just about the attackers, although they scored.
"I just wish from the bottom of my heart that Messi gets to showcase his talents and has his best performance of all time."
However, Maradona admitted that the little left-footed wizard may suffer after a long hard season with Barcelona.
"Messi has played 63 matches, (Barcelona coach Pep) Guardiola would take off other people such as Xavi but he wouldn't take off Messi.
"But Messi knows very well that he can make the difference in a match, that he can create goal-scoring possibilities and if it's a very tight match, he can always score in the next one.
"But this is what the World Cup is all about, there's no margin for error and there's no guarantee that your players will be playing at the top of their game."
Messi arrived at the last World Cup in Germany amongst much hype having just helped Barcelona to the Champions League crown but both he and Argentina flopped, going out to Germany on penalties in the quarter-finals despite a great start in the group stages in which they thrashed Serbia and Montenegro 6-0.

   

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