Thursday, January 29, 2009

SINGAPORE: DBS CEO has leukemia, chairman runs bank for now


DBS CEO has leukemia,
chairman runs bank for now


By Saeed Azhar
SINGAPORE,
Jan 29 (Reuters)

DBS Group's (DBSM.SI) chief executive Richard Stanley has leukemia, creating a leadership vacuum at Southeast Asia's largest bank when its two key markets are suffering from recessions.

Koh Boon Hwee, the Singapore bank's chairman, will take charge after Thursday's shock announcement that Stanley would be absent for up to six months for medical treatment.

Analysts said Stanley's absence after just over eight months at the helm the bank, would be worrying if it went beyond the six months the bank had stated.

"At the moment we don't see a major shift in direction unless he stays away for a bit longer than six months," Daphne Roth, anal yst at ABN AMRO private bank "Beyond that they will have to find a replacement."

Stanley, 48, previously head of Citigroup (C.N) China, was hired in May last year with an aim to expand the bank's reach beyond its two core markets Singapore and Hong Kong. [ID:nSP332811]

He cut 900 jobs last year to slash costs, sold preference shares last year and last week completed a S$4 billion rights ($2.67 billion) issue, which was oversubscribed.

DBS last month predicted its fourth-quarter profit may fall from the previous three months and analysts have warned that the lender, which makes 90 percent of its profit from Singapore and Hong Kong, could be hit by loan losses due to the worsening economic outlook. Continued...

Tuesday, January 27, 2009

Romanian president opposes asking for IMF help

Romanian president
opposes asking for IMF help


By Justyna Pawlak
Forbes
01.27.09

BUCHAREST, Jan 27 (Reuters) - Romanian President Traian Basescu has spoken out against a potential deal with the International Monetary Fund, defying expectations from many economists that Bucharest may be forced to seek IMF help.

Bucharest's month-old coalition government appears conflicted about seeking the fund's help to shore up jittery markets and insulate the economy from the threat of a financing crisis, in deals similar to those sought in 2008 by Hungary and Ukraine.

Basescu's comments, made in a late-night television show on Monday, come as the Washington-based lender began a scheduled mission to Bucharest. The fund has said talks about any assistance programme are not on the agenda for the visit.

A senior coalition strategist, Ionut Popescu, said in December at least 10 billion euros in IMF cash may be necessary, while Prime Minister Emil Boc has said a decision whether to seek help had not yet been taken, saying the country had 'many solutions' to its current situation.

But Basescu, who has close political ties with Boc's month-old cabinet, said Romania should not seek an IMF deal.

'Romania needs financing ... but the solution is to take money from the EU, not from the Fund .. We are not in the same situation as Hungary,' he said.

[Romanian president opposes asking for IMF help
Forbes, NY ]

Rohingya refugees face deportation

A group of Rohingya refugees who say they were beaten and burned by Myanmar soldiers as they tried to flee on boats to Thailand are facing likely deportation back to Myanmar.

The 78 refugees were intercepted earlier this week by Thai authorities, who have themselves faced accusations of abusing Rohingya boat people in recent days.

On Wednesday 66 members of the group appeared in court in the town of Ranong in southern Thailand to hear charges of illegally entering the country.

They were not represented by lawyers and will not have an opportunity to defend themselves.

The remaining members of the group were minors too young to appear in court.

Al Jazeera correspondent Selina Downes was in court and said that if they are convicted, as seems likely, they will face jail for up to a month followed by deportation.

She said some who were too injured to injured to walk were taken into court on stretchers carried by other refugees.

'Tortured'

Who are the Rohingya?

The Rohingya are a Muslim ethnic group from the northern Rakhine state of western Myanmar, formerly known as Arakan state.

Their history dates to the early 7th century, when Arab Muslim traders settled in the area.

They are physically, linguistically and culturally similar to South Asians, especially Bengali people.

According to Amnesty International, they suffer from human rights violations under the Myanmar military government, and many have fled to neighbouring Bangladesh as a result.

The vast majority of them have effectively been denied Myanmar citizenship.

In 1978 an estimated 200,000 Rohingyas fled to Bangladesh.

Approximately 20,000 Rohingya are living in UN refugee camps in Bangladesh.

Earlier speaking to Al Jazeera in hospital in Ranong, several of the men showed evidence of serious injuries they said were inflicted after their boat was intercepted by the Myanmar military as they tried to escape the country.

One man who gave his name as Sutamin said he was taken onto a military vessel, where soldiers wrapped a cloth around a wooden stick, doused it in kerosene, ignited it and held it to his skin.

"I got beaten. Everybody got beaten," he said. "But not a normal beating - this was very hard. I was tortured."

He said the soldiers had also tied a noose around his neck and threatened to strangle him.

Thai medical teams treating the group said they were shocked at the extent of their wounds.

The Rohingyas are a stateless Muslim minority group who face persecution in Myanmar, whose military government does not recognise them as citizens.

Tens of thousands have fled the country, often in rickety wooden boats to Thailand from where they travel overland to Malaysia.

Earlier this month the Thai army was itself accused of abusing Rohingya refugees, beating them and forcing their boats to return to sea without food and fuel, or with their boat's engines disabled or removed.

'Economic migrants'

Reports from survivors who washed up on India's Andaman islands and northwest Indonesia suggested hundreds who were towed out to sea by Thai soldiers may have died.

"There is no reasonable ground to believe that these migrants fled from their country of origin for well-founded fear of being persecuted"

Thai government statement

Human rights groups say the Thai military has been engaged in a secret and systematic campaign against Rohingya migrants, because of suspicions they may be involved with Muslim separatist fighters in Thailand's south.

The Thai military and government have rejected the allegations.

They also deny that the Rohingya face persecution in their country of origin.

On Wednesday the government issued a statement re-iterating its position that the Rohingya are illegal economic migrants, not refugees, and will never be let into the country

"There is no reasonable ground to believe that these migrants fled from their country of origin for well-founded fear of being persecuted," the statement said.

Larry Jagan, a Myanmar specialist, told Al Jazeera that the root of the problem lay with the government in Myanmar, and any solution would require a strong international approach.

He said the repression carried out in Arakan, the region of Myanmar where most Rohingya come from, was "immense".

"It's much worse than abuses committed by the government elsewhere in the country, but it's not new - this has been going on for about 20 years."

[Rohingya refugees face deportation
Aljazeera.net, Qatar]


Nixon v Frost: The true story of what really happened when a British journalist bullied a TV confession out of a disgraced ex-President

Nixon v Frost:
The true story of what really happened


By Jonathan Aitken
24th January 2009

What really happened behind the scenes in Frost/Nixon? The new film tells the story of the epic series of interviews between David Frost and Richard Nixon in 1977 that ended in one of 20th century television's most dramatic confessions.

The tale has been given a riveting screenplay by Peter Morgan (The Queen, Longford and The Last King Of Scotland) and is magnificently acted by its two stars - Frank Langella as Nixon and Michael Sheen as Frost.

But Hollywood history and accurate history are sometimes uneasy bedfellows. The true story of the interplay between the two protagonists and their entourages that resulted in such an unexpected and gripping climax is much more intriguing than the dramatic license employed to portray the events on screen.

The real thing: David Frost (right) interrogates Richard Nixon in 1977

The real thing: David Frost (right) interrogates Richard Nixon in 1977

I can give the inside story because, as Nixon's biographer, I knew the ex-President and his inner circle well. After he was forced to resign from the presidency for his part in the cover-up of a burglary at the Democratic Party offices in the Watergate building in Washington DC by undercover agents linked to the White House, Nixon withdrew from the world in disgrace.

But during those difficult post-resignation years (1974-79), I was a regular visitor to La Casa Pacifica, the Nixons' hacienda-style estate overlooking the Californian coast at San Clemente, where most of the movie was filmed.

After my first marriage in 1979, my wife and I spent part of our honeymoon at La Casa Pacifica.

There, an awkwardly but determinedly romantic Richard Nixon presented us with a formal corsage of flowers, made delicate inquiries on how we were sleeping, and took immense pains in putting on a festive dinner party which he called 'La Casa Pacifica's welcome to the honeymooners from three happily married couples'.

They turned out to be ex-President Nixon and his wife; David and Julie Eisenhower (President Ike's grandson and Nixon's daughter); and Congressman and Mrs Jimmy Roosevelt (FDR's son and daughter-in-law).

The newly-wedded Aitkens came a poor fourth in such dynastic circles.

Scandal: The Watergate Hotel where shamed former President Richard Nixon attempted to bug and burgle the offices of the Democratic National Committee

Scandal: The Watergate Hotel where shamed former President Richard Nixon attempted to bug and burgle the offices of the Democratic National Committee

Almost as crucial to my understanding of the real events behind the film as knowing Nixon himself was knowing the team around him in his years of exile. They were his senior aide, Colonel Jack Brennan (who, played by Kevin Bacon, co-stars in the movie); my old Oxford friend and contemporary Frank Gannon, who was chief researcher on Nixon's memoirs, and his girlfriend Diane Sawyer, now a top TV presenter but then Nixon's principal Watergate researcher.

Then there was former speechwriter and researcher Ken Khachigian, who was keeping a diary that is probably today's most reliable historical record of the Frost/Nixon drama; Ray Price, another of the ex-President's speechwriters; and the former White House press secretary Ron Ziegler.

On my non-honeymoon visits, I usually stayed with Sawyer and Gannon, and formed a particularly good relationship with Jack Brennan, with whom I co-organised Nixon's first post-resignation visit to London in 1978.

Those of us who were around at the time are united in our incredulity over three major historical flaws in the Hollywood version of the story. Without giving too much of the plot away, the most dramatic twist in the movie comes when Nixon makes an extraordinary and emotional latenight phone call to Frost.

This phone call did not happen. Nixon's weird rant about his personal motivations and social resentments, which purportedly gave Frost new clues to hidden secrets about the Watergate cover-up, is, from start to finish, an artistic invention by the scriptwriter Peter Morgan.

Frost and Nixon leave an unidentified home in South Laguna, California , after taping the interview

Frost and Nixon leave an unidentified home in South Laguna, California , after taping the interview

He uses this dramatic device as the turning-point which gave a demoralised Frost fresh hope and adrenalin, firing up his psyche so that he became transformed into a pugnacious interrogator whose brutal line of questioning ultimately broke the former President.

That never happened either. For Frost did not ambush Nixon during the final interview into a damaging admission of guilt. What the former president 'confessed' about Watergate was carefully pre-planned. It was only with considerable help and advice from his adversary's team that Frost managed to get much more out of Nixon, in the closing sequences, by reigning in his fierce attitude and adopting a gentler approach.

And, finally, the consequences of the interviews for the lives and futures of the two principal protagonists were quite different from the winner-takes-all sequences we see at the end of the film.

Back in 1977, Nixon was at rock bottom as a disgraced political pariah in exile. He bore more than a passing resemblance to Napoleon at Elba, with the added indignity of being desperately short of money. Unable to meet his doctors' and lawyers' bills, Nixon was on the verge of no longer being able to pay his staff.

Frost's willingness to sign a contract paying Nixon $600,000 - around $8 million in today's money - for 24 hours of taped interviews which would be edited down to six one-hour programmes, was a financial lifeline; at least three times more than the previous offers he had received from major U.S. networks.

Nixon was driven solely by this urgent need for cash, so he accepted the highest bid, even though it came from an improbable British source.

Unfortunately for Frost, most of the recorded interviews were a journalistic disaster. Nixon, the master stonewaller, fulfilled his contractual obligation to get through all 24 hours of televised interrogation. Although he never actually gave an answer lasting 23 minutes to a single question (as the film suggests), he did succeed in weaving a web of maximum tedium and minimum disclosure.

Worst of all, Nixon gave no ground on Watergate; nor did he come anywhere near offering an apology for it.

Frank Langella playing Richard Nixon in the film Frost/Nixon

Frank Langella playing Richard Nixon in the film Frost/Nixon for which he has been nominated for best actor in the 81st Academy Awards

The film accurately captures the Frost camp's despondency at how badly things had gone. What it does not say is that the Nixon camp was equally downcast. They realised that by offering nothing new to the American public, no attempt to explain or justify the events of three years earlier, Nixon could not even begin to repair his shattered reputation.

Indeed, so great was the San Clemente team's disappointment that they decided to move the goalposts - but for Nixon's benefit.

As Colonel Jack Brennan tells it: 'Frost sent his aide, John Birt [later boss of the BBC], to see me. He said: "This has been terrible. We need more time."

'My immediate reaction was "Tough. We've kept our side of the deal: the taping is over."

'But later I talked it over with my staff. We all agreed that Nixon should voluntarily go further and express some regret.

'So I went to see the boss and I said to him: "Listen, if this ends the way it has, the world is going to say, there goes the same old Nixon."'

At first, Nixon was curtly dismissive of this criticism. But Brennan and his team persisted. Their argument was that some expression of regret for Watergate needed to be put on record.

At the time of his resignation, and in his subsequent three years of selfimposed silence, the absence of an apology from Nixon had become a contentious issue in the media. So Brennan's argument that this was an opportunity to say sorry for causing the national trauma of Watergate carried some weight.

David Frost, pictured late last year, was said to be more of a kindly therapist in his interview with Nixon

David Frost, pictured late last year, was said to be more of a kindly therapist in his interview with Nixon

Eventually, Nixon was grudgingly convinced, agreeing to gratuitously offer one more additional interviewing session. However, he wanted to do it some weeks later, in late May 1977.

Frost pointed out that the delay would result in the interviews being screened in August - a notoriously poor month for ratings.

With a flash of his famously self-deprecating humour, Nixon retorted: 'I got pretty good ratings on August 9, 1974' - the date of his resignation from the presidency.

A compromise was found. 'From that moment onwards,' recalled Brennan, 'I knew that Nixon was spending all his time preparing himself for how to say something that would not be a confession or an expression of guilt, yet would say sorry for what had happened.' Throughout his life, Richard Nixon had difficulty giving apologies. This one was the hardest of all.

As an assiduous rehearser of his own speeches, and an amateur dramatics actor of some note in his college days, the ex-President set about practising some of the lines that were later to be made famous by Frost: 'I gave them a sword . . . I let the American people down. . .'

However, in the first half of the final interview session, they were never delivered. Nixon seemed to be suffering some strange emotional block which, despite his intentions, resulted in more stonewalling and no expression of regret.

It was only some intuitive teamwork between Brennan and Frost that finally broke the impasse. The final session was suddenly interrupted, not by a blazing row as in the Hollywood version, but by Brennan holding up a notice to Frost with the words: 'Let him talk.'

Misreading the sign as 'Let us talk', Frost called for a break. During-this unexpected short interval, Nixon was persuaded by his team to overcome his reticence and put his mea culpa on the record once and for all.

But he did this only because Frost changed gear, too. Instead of crossexamining like a prosecutor on steroids, as he had been, Frost offered empathy, sympathy and gentleness to the visibly tormented ex-President.

Both men were in different frames of mind as a result of the promptings they had received during the break. Nixon was struggling to unlock his guilt, while Frost threw his clipboard away and adopted the mantle of a kindly therapist encouraging a patient to release his innermost feelings.

The result was one of the most gripping moments in television history. Under Frost's coaxing, Nixon finally conceded that he had participated in the cover up and lied to the world about it.

'Yes,' said Nixon, 'I let the American people down. And I'll have to carry the burden the rest of my life.'

As Frost's top researcher Robert Zelnick describes this cathartic moment: 'It happened because the Nixon staff made it happen.'

Making it happen again in the 21st century with Frost/Nixon is undoubtedly a cinematic triumph; but the film has other weaknesses when measured against history. As one of the few people who has known both Nixon and Frost well, I can say that it only catches one of their characters accurately.

The Hollywood portrait of David Frost is far too flip and flashy. Even in the 1970s, he was a considerably more substantial character, and his journalistic track record to that point far more accomplished than Peter Morgan's screenplay suggests.

Michael Sheen, who plays David Frost, is pictured at the South Bank Show Awards at the Dorchester Hotel, London

Michael Sheen plays David Frost in the new film Frost/Nixon

He is a deeper and kinder man, too. It was these underestimated qualities which earned Frost the trust of the Nixon team and eventually prised the historic lines of regret out of the 37th President of the United States.

But Frank Langella's portrayal of Nixon brilliantly captures his Shakespearean complexity with a faithfulness that seems uncanny to those of us who were close to the ex-President at that time. The mean streaks, the inability to trust, the defensive circumlocutions and the self-serving evasiveness are all authentically re-created on screen.

But so, too, are Nixon's bottledup vulnerabilities, the pathos, the hurt, the self-deprecating humour, and even the wounded dignity of this surprisingly touching lion in winter.

'I prepared for the part by trying to understand the inner life of Nixon the man, not Nixon the President,' Langella told me in an interview last week. 'As I studied him in his boyhood, in his adolescence, and as a young man making his way, I gradually got to the individual hidden deep underneath the image he tried to project to the camera.'

These preparation techniques have resulted in a tour de force by Langella that this week earned him an Oscar nomination for Best Supporting Actor - one of five nominations awarded to the film.

This film is no vindication of Nixon, but it has already resulted in a resurrection of human and historical interest in him.

And that highlights the final flaw in the film. Frost is depicted as the clear winner of the contest, jetting off to greater fame and fortune (correct, although he only just broke even financially on the interviews), while Nixon is seen as the abject loser, marooned forever in golf-playing exile.

Not so. This was a win-win result. Nixon used his massively viewed 'confession' to Frost as the springboard to a re-invented role which the cynics called 'running for ex-President'.

Liberated from the earlier criticism that he had never apologised, Nixon emerged from the shadows of San Clemente and re-entered the spotlight of public life.

He moved back to New York, wrote nine best- selling books, became well respected as a sage of foreign policy, returned to the White House to advise Presidents Reagan and George Bush Snr, was a broadcaster and writer on national security issues, and addressed influential audiences across the world before his death in 1994.

Now he is a big hit at the box office, too. Who would ever have believed it at the time of those Frost/Nixon interviews?

[Nixon v Frost: The true story of what really happened when a ... Daily Mail]

Japan may help U.S. if China stops debt purchase


Japan may help U.S.
if China stops debt purchase


By Nick Olivari

guardian.co.uk
Reuters,
Tuesday January 27 2009

NEW YORK, Jan 27 (Reuters) - Japan could be a counterweight against rising U.S. borrowing costs should China buy less U.S. government debt in response to pressure from Washington to change its currency policy.

Investors are on full alert that Japan's Ministry of Finance could buy dollars to bring the yen down from a 13-1/2- year peak first touched in December and hit again in January.
Japan, which relies heavily on trade to power its economy, saw its exports plunge 35 percent in December.

Already holding $1.03 trillion in official reserve assets, according to International Monetary Fund data, the next question is what would Japan do with intervention dollars.
Given Japan is the second-biggest holder of U.S. debt after China, it would likely buy Treasuries, denting some of the impact if Beijing hits back over recent foreign-exchange criticism by Timothy Geithner, now Treasury secretary.

"Japan gets a higher dollar/yen rate and keeps the domestic exporters happy while the increased supply of U.S. debt and specifically Treasuries gets mopped up," said Dustin Reid, senior currency strategist at RBS Global Banking & Markets, in Chicago.
The U.S. government "could issue a lot more debt and it is no secret that Japan wants its currency to weaken," Reid said.

Prices of U.S. Treasury bonds fell last week, partly on concerns that Geithner's comments, made in testimony to senators weighing his nomination as Treasury secretary, could provoke China into buying less U.S. debt.

But there was no sign of weaker foreign demand at a $40 billion auction of two-year Treasury notes on Tuesday.

JAPAN'S INCENTIVE

Foreign central banks and individuals hold more than half of the $5.8 trillion in outstanding U.S. government debt. China and Japan hold about a quarter of the total amount.

China edged out Japan as the biggest holder of U.S. debt in 2008 after years of recycling the money they received from U.S. consumers for exports by buying Treasuries. That began a cycle of keeping the U.S. consumer at the mall on cheap loans.

Amid the global downturn, Japan has no less incentive to keep its factories running.
With the U.S. government set to issue some $2 trillion of debt in 2009 alone in order to fund a stimulus package to revive the economy, Washington is keen to see buyers.

"Intervention by Japan would probably result in increased purchases of U.S. debt," said Omer Esiner, senior market analyst at Ruesch International in Washington.

"Any decrease in demand for U.S. debt by China that is offset by Japan would be good for the U.S. economy."

Shortly before Geithner won confirmation as U.S. Treasury secretary on Monday, the White House hedged his statement last week -- that President Barack Obama believed China was manipulating its currency -- by saying a formal decision on the issue would be made in coming months.

The fear, though, is that this could be an opening salvo in a more confrontational relationship between the United States and China.
China has denied the currency manipulation charge, but IMF Managing Director Dominique Strauss-Kahn said on Monday the yuan was "significantly undervalued."

YUAN VS YEN

In the first three years after China let it begin to appreciate in July 2005 in response to long criticism from U.S. lawmakers, the yuan gained around 18 percent against the U.S. currency, including the initial revaluation.

But today, it is trading at 6.83 yuan to the dollar, kept by Chinese authorities at roughly where it was in July 2008.

At those levels, China has sold vastly more goods to the United States than the latter has sold to China. While China does have a cheap labor force, its trade advantage over other low-cost producers is bolstered by the exchange rate.

Between January and November 2008, the United States ran a trade gap with China of $246.45 billion, according to U.S. data, after a $256.2 billion deficit in 2007 as a a whole.
By contrast, the U.S. deficit with Japan was $67.39 billion for the first 11 months of 2008, after an $82.76 billion deficit in 2007. The freely floated yen last traded around 89.50 yen to the dollar.

Intervention by Japan's Ministry of Finance to weaken the yen by buying dollars could also be considered a "manipulation" of the currency, but Washington will point no fingers there, given the fundamentally different relationship with Japan.

"Japan does have a floating currency and they never (intervene) without alerting the Fed," said Peter Zeihan, vice president of analysis at Stratfor, an Austin, Texas-based global intelligence company. "Independent of that, Japan is an ally."

To be sure, whether the United States and China clash outright is still open to debate, as is whether Japan would even be able to press an advantage.

While Japan would probably like the dollar/yen rate to be above 100 instead of the current 89.14, the impact of China not buying U.S. Treasuries or moving reserves into other currencies could overwhelm any other actions, said Joseph Trevisani, chief market analyst at Saddle River, New-Jersey based FX Solutions.

"I'm not sure we would get the type of logical follow-up effects because of the turmoil," Trevisani said. "Fear for the U.S. economy could overwhelm the dollar and it would fall." (Reporting by Nick Olivari; Editing by Jan Paschal)

[Japan may help US if China stops debt purchase
guardian.co.uk, UK]

Monday, January 26, 2009

Explore the history of the U.S. naval base at Guantanamo Bay, Cuba.

CNN Student News Transcript

AZUZ: First up, an executive order to shut down the detention facility at the U.S. naval base in Guantanamo Bay, Cuba. Yesterday, President Barack Obama ordered that the facility be closed within the next year. The detention center has housed detainees in the War on Terror since 2002. But critics say that many of those detainees have been held at Guantanamo indefinitely. Some lawmakers are opposed to closing the facility, because moving the detainees to U.S. prisons could be risky to national security. But President Obama says it will help the U.S. regain the moral high ground in the war on terror.

U.S. PRESIDENT BARACK OBAMA: The message that we are sending around the world is that the United States intends to prosecute the ongoing struggle against violence and terrorism. And we are going to do so vigilantly, we are going to do so effectively, and we are going to do so in a manner that is consistent with our values and our ideals.

AZUZ: Okay, so how did a U.S military base end up in Cuba in the first place. CNN's Kyra Phillips and Josh Levs talked about that issue and the history of the detention facility.


JOSH LEVS, CNN CORRESPONDENT: Okay, I want to show you where this is. Let's zoom all the way down to Cuba. And while were here, a few things to take a look at. We're going to get into this area here: Guantanamo Bay. In this section, you can see why it's called a bay. Now, look at this: There are two things that we talk about; sometimes we mix the terms. You have all of Guantanamo Naval Base, and then you have this, which is the prison area there. And within this -- I'm going to get out of the way here -- Camp Delta, one of six camps at the prison base there at the prison that are used to hold onto many of these terrorism suspects.

Campa Delta you hear a lot about. In fact, we have some video I want to show you here from Guantanamo Bay. It includes some video from Camp Delta. Now, the cells are about eight feet long, seven feet wide, eight feet high. And no one is allowed on the base without U.S. permission. So, the video we have often comes from the military or is screened by the military. And I have some facts for you here. Now, you mentioned before 250 detaineees now. But at its peak, there were actually 750. Five have died in U.S. custody. And you talked earlier about how long they've been there. The first ones from Afghanistan and Pakistan arrived in January of 2002. So, it's about exactly 7 years ago. And obviously, as we know, we just saw in that piece there, the prison has been a tremendous source of controversy. A lot of questions raised about the treatment of detainees there, Kyra.

KYRA PHILLIPS, CNN ANCHOR: Alright, well as we know, the background here; if you look at the history of the U.S. and Cuba, we haven't had dipolomatic relations. So, why a base there?

LEVS: Yeah. You know why? Because it goes way back to before any of that happened. Way back as in more than a century ago. Let's give you some dates here. In 1903, Cuba leased that area to the United States. And then what happened was that in 1934, Cuba and the U.S. signed a perpetual lease, and it can only be broken by mutual consent. So, that is what has to happen there. The U.S. continues to pay. It's been sending, lately, checks for $4,085 a year. Actually, Castro didn't even cash them. The Cuban government still does not. The Cuban government says that the lease is illegal. But if you look at that lease, it has to be ended by mutual consent. So, unless the United States wants to end it, Cuba can therefore not do it on its own. And that is why this prison has been there, and that is why the naval base has continued to exist even with no diplomatic relations with Cuba.

Word to the Wise

GEORGE RAMSAY, CNN STUDENT NEWS: A Word to the Wise...

nationalization (noun) government ownership or control of something, like a business or industry

Saving Banks

AZUZ: With the country's economy struggling, there's been talk about the possible nationalization of the U.S. banking industry. It's happened before in parts of Europe and Asia. Sometimes it worked; sometimes it didn't. But is this the right move for the U.S.? And if not, what in the world is? Mary Snow examines the issue of nationalization and explores some alternative solutions.

(BEGIN VIDEO CLIP)

MARY SNOW, CNN CORRESPONDENT: Despite the air of optimism in Washington, Wall Street is increasingly worried about the banking industry. With banks racking up billions in losses, many economists say the Obama administration needs to act quickly. But options are few. Britain is moving towards nationalizing some banks, leading to fears the same might happen in the U.S.

CHRIS MAYER, COLUMBIA BUSINESS SCHOOL: That idea that the government just takes over the banks entirely, I think, is not only dangerous politically -- that is, we don't want the U.S. government running our entire financial system -- but also I think it's likely to be ineffective.

SNOW: Some economists point to success in Sweden. Back in the 1990s, it nationalized banks to deal with its financial crisis. One former FDIC commissioner notes, while it worked, Sweden had fewer banks to take over.

WILLIAM SEIDMAN, FORMER FDIC CHAIRMAN: We have a couple of hundred big banks and thousands of small banks. And obviously, the government doesn't want to take all of those over.

SNOW: Another idea? Some economists say the government should create a so-called "bad bank." Simply put, the government would buy toxic assets from struggling banks and segregate them.

SIMON JOHNSON, FORMER IMF CHIEF ECONOMIST: You want to take them out of the picture so the government is buying those assets from the banks. It's giving them cash or treasury securities in return.

SNOW: One major challenge? Putting a price tag on those troubled assets. One economist doesn't see any of these options really working.

MAYER: I think we have to keep the banking system alive. And there really isn't much of an alternative to doing it other than injecting capital and trying to generate some private capital, and then working to fix the housing market in a serious way.

SNOW: Treasury Secretary nominee Timothy Geithner was asked during his confirmation hearing about creating a so-called bad bank. He acknowledged the idea was under consideration, but also difficult to get right. Mary Snow, CNN, New York.

(END VIDEO CLIP)

Shoutout

RAMSAY: Today's Shoutout goes out to Mr. Bailey's 10th Grade world civilization classes at Fairdale High School in Fairdale, Kentucky. Who was the first U.S. treasury secretary? You know what to do! Was it: A) Benjamin Franklin, B) Aaron Burr, C) John Adams or D) Alexander Hamilton? You've got three seconds -- GO! Alexander Hamilton served as the country's first treasury secretary from 1789 to 1795. That's your answer and that's your Shoutout!

A Witness to History

AZUZ: Hopefully you were paying attention, because that question is on our weekly Newsquiz. You can find it at CNNStudentNews.com. Another issue likely to turn up on the test: the presidential inauguration. Student iReporter Corey O'Quinn gives us a ground-level perspective on this moment in history.

(BEGIN VIDEO CLIP)

COREY O'QUINN, iREPORTER: Corey O'Quinn here for CNN Student News. We're walking about downtown D.C. a couple of hours after the inauguration. As you can see, there's not as many people here. Everyone is trying to clear out and be on their way. But earlier in the day, it was a completely different story.

This was the scene early Tuesday morning in our nation's capital, as millions of people made their way into the city to witness the inauguration of Barack Obama. I've never before seen so many people in one place. We were all being herded around the city like a bunch of cattle obediently following our shepherds. But the mood was joyous. Everyone was smiling, yelling, and chanting as they made their way to their destinations. Even I couldn't contain my excitement.

O'QUINN: Feels pretty amazing.

PERSON ON THE STREET: Pretty amazing?

O'QUINN: Yeah, it's awesome. Can't wait.

O'QUINN: After making my way through the herds of people, I found a spot in front of the jumbotron next to the Washington Monument to watch the ceremony. After waiting several hours in the freezing cold, I finally witnessed President-elect Barack Obama become the president of the United States.

Even though I had to watch on the TV screen on the National Mall, I still feel blessed to have had the opportunity to become a witness to history.

(END VIDEO CLIP)

Off the Beaten Path

AZUZ: Fridays are awesome! Especially when we get to take a trip Off the Beaten Path. This week: some inaugural indulgences you could actually ingest!

(BEGIN VIDEO CLIP)

AZUZ: Forget about what the Obamas were wearing on Inauguration Day. We wanna know what they were eating, and if it included any edible Obama indulgences offered amid inauguration enthusiasm! That's a mouthful, and so are these cookies: iced with an edible, executive image, even infantile eaters enjoyed an allotment!

WOMAN: We worked 24 hours a day for two days.

AZUZ: ...So they could stay fresh for the fresh new leader. Well, if you're more into image, these cookies actually come with a presidential picture, also, they say, safe for the stomach. But if it seems like a compliment to have your face on a cookie, consider this: someone would bite off your head. Still flattered? Either way, you're gonna need something to wash it down. And not to be outdone by its cookie counterparts, we give you "Barack-O-berry" soda.

MAN ON THE STREET: It symbolizes change. It has a different taste, a different flavor.

AZUZ: Hmmm, "different." But does that mean it's good? Winning the election was probably pretty sweet, but this commemorative cola's supposedly even sweeter.

ROB METZ, OWNER, AVERY SODAS: Mister Obama happened to be on vacation in Hawaii at the time. We said, "Let's add some pineapple to the blue raspberry just for his Hawaiian heritage."

AZUZ: Whether you'd go for it, or if you would've preferred a sample of John McCream, this trip Off the Beaten Path has fizzled out.

(END VIDEO CLIP)


Explore the history of the US naval base at Guantanamo Bay, Cuba.
CNN

UK holidaymakers 'run malaria risk'

UK holidaymakers
'run malaria risk'


The Press Association

More UK holidaymakers run the risk of contracting malaria as they switch from traditional hotspots in the hunt for bargain trips during the recession, it was revealed.

The collapse of the pound against the euro means increasing numbers of British tourists are visiting malarial countries such as South Africa, Kenya, Thailand and Malaysia.

The Malaria Awareness Campaign on Sunday warned holidaymakers, particularly those making 11th hour bookings, to beware the dangers.

Frances Tuke, of travel organisation Abta, said: "As money monitoring remains a top priority, travellers are taking advantage of last-minute deals to destinations where they'll get the best value for money, rather than the usual summer holiday in Europe."

Dr George Kassianos, a member of the UK Malaria Guidelines Committee, added: "We know from studies that people who book their trips at the last minute are much less likely to seek travel health advice before they go.

"Deaths can occur within 24 hours of the first symptoms of the most dangerous strain of malaria, so all travellers need to recognise the importance of speaking to their GP, practice nurse or travel clinic before going abroad."

The most recent figures from the Health Protection Agency showed that there were 1,548 cases of malaria reported among UK travellers in 2007. Five of these cases were fatal.

The majority of the cases (1,139) were due to the potentially fatal Plasmodium falciparum strain, which is a major international health risk and kills more than a million people a year in Africa.


reference: UK holidaymakers 'run malaria risk'
The Press Association

Reporter's diary: Gaza's tunnels

Reporter's diary:
Gaza's tunnels


aljazeera
January 27, 2009

While Israel waged their bloodiest assault on Gaza in decades, their warplanes targeted tunnels on Gaza's border with Egypt in an effort to halt alleged arms shipments.

Now, Palestinians are busy restoring the bomb-damaged tunnels, and consumer goods are starting to flow into Gaza again.

Al Jazeera's Jeremy Young describes the process of filming inside them.


The famous tunnels in the southern part of the Gaza Strip are easy to find.

Everybody knows where they are, but getting inside is another story.

Israel has maintained its blockade of Gaza, preventing goods from being imported, and Palestinians use the tunnels to transport every product imaginable from northern Egypt into the territory.

Watch the report here


Gaza tunnels are open for business

The Israelis argue that the tunnels are used by Hamas to smuggle in weapons.

About 95 per cent of them were damaged or destroyed in Israel's recent three-week military assault on Gaza.

Our fixer had spent three days trying to get us access inside the tunnels.

He said that he called 10 different tunnel operators and nobody would allow us to film there for fear that their tunnel might be targeted by an Israeli raid.

In the end, he succeeded and we arrived at 8:30 on Saturday morning at the first tunnel having agreed not to film any faces of the people that worked there.

We sent Tony Zumbado, our cameraman and Mike Kirsch, our correspondent, inside the tunnel, which was at the end of a shaft about 20 metres deep.

They used a pulley system, which is normally used to bring goods up and down, to send Mike and Tony down.

Al Jazeera interviewed Abu
Wesam, a tunnel operator

This tunnel was not yet operational, as they were still making repairs after it was bombed during the war.

It extended an estimated 800 metres under the border and into Egypt.

While we were interviewing one of the tunnel operators, a senior supervisor arrived and began yelling and screaming.

He was furious that we were filming there saying that they would get no benefit from our report.

As our team moved to get back into our van, he said he would not allow it to leave and he would blow it up if we moved it.

He ran to the entrance of the tunnel and dragged barbed wire across to prevent us from leaving - tunnels are a serious business in Gaza and he had no interest in risking its future.

Trapped inside

The second tunnel we visited, they agreed to allow Tony to go down.

This tunnel had been operational for just one day. Some of the items that they had brought up from it included generators, computers, rice, chocolate and powdered milk.

Mike Kirsch speaks to Tony, our cameraman who was trapped inside the tunnel

The owner had spent about $90,000 on the tunnel, which was a joint operation with eight partners and it had opened only about one week before Israel's assault on Gaza began on December 27.

Once Tony reached the bottom, however, the generator shut down.

It took about 20 minutes for the tunnel operators to get the generator going again and Tony was successfully hoisted out.

At the first tunnel, the supervisor who was so angry about our presence, finally calmed down after about 15 minutes of rigorous negotiation from our fixer.

He had demanded the material that we had filmed so we gave him one of our tapes, pulled the barbed wire back and drove our van out into the street.

But he then he walked over to us with tears in his eyes.

He apologised for his earlier explosion.

He explained that the whole situation following the war was very difficult for everybody in Gaza and that was why he had lost control.

He returned our tape to us and told us if we wanted to come back and film at the tunnel that we would be welcome.

We told him that he had no need to apologise, thanked him and drove away.

France eyes airline stimulus plan

France eyes airline
stimulus plan

BBC News.

The French government is preparing to tell banks to lend 5bn euros ($6.5bn: £4.68bn) to airlines to help them with aircraft purchases, reports say.

Shares in EADS, parent firm of European planemaker Airbus, rose on Monday, but were later only 0.78% ahead.

Reports in France say the banks are being asked to act in return for benefiting from a 10bn-euro package of state funds to boost capitalisation.

Airbus chief executive Tom Enders has warned 2009 will be "challenging".

"We all know that 2009 will be a very challenging year for the aeronautics industry," he said last week.

'Slightly contrived'

Airbus is restructuring to cope with currency volatility and other issues.

Its Power8 cost-cutting programme has saved 1.3bn euros, but could face a revenue shortfall if the economic crisis affects customers' ability to pay.

The aerospace industry is one of France's biggest export earners and provides thousands of high-tech jobs.

"The market is struggling to get its mind around it [the package]," said Sandy Morris, analyst at ABN Amro.

"We've been expecting some increased support from the government, but it sounds a slightly contrived way to do it."

'Respond'

It is understood French banks would receive a further 5bn euros in state guarantees from the body set up last year to back up to 320bn euros in new bank debt.

A French finance ministry official quoted by the AFP news agency said that the plan would "permit us to respond to the difficulties of plane manufacturers' clients who can't find financing".

Airbus saw a 7% rise in deliveries to a record 483 planes in 2008.

Last week it said it had a backlog of 3,715 jet orders, which, it is estimated, would take six years to clear, although this could be reduced to four years with cancellations.

reference: France eyes airline stimulus plan
BBC News, UK

At least two die in stormy Madagascar protests

At least two die
in stormy Madagascar
protests


By Alain Iloniaina

ANTANANARIVO, Jan 26 (Reuters) - Tens of thousands of angry anti-government protesters took to the streets of the Malagasy capital on Monday, burning the state-owned TV and radio station, and a security source said at least two people were killed.

The chaotic scenes seemed sure to dent the government's efforts to present the Indian Ocean island as a safe place for foreign investment, especially in the mining, tourism and oil sectors.

"We know of two deaths," the security source said, telling Reuters a policeman and a 14-year-old had been killed during the angry demonstrations calling for President Marc Ravalomanana's government to resign.

Local journalist Fano Rakopondrazaka said 11 people had died during the chaos on the streets. "I saw 11 dead men. They were looters crushed in a stampede," he told Reuters from the scene.

That could not be independently confirmed.

The violence broke out on the first day of strikes called by the opposition against Ravalomanana, who has been in power since 2002 and who opposition parties say is increasingly autocratic.

The strike call followed the government's closure of a private television station owned by the capital's maverick 34-year-old mayor and opposition leader, Andry Rajoelina.

Authorities shut the station last month after it broadcast remarks by the exiled former president, Didier Ratsiraka. The government deemed the remarks likely to incite civil disorder.

FOREIGN FIRMS

Major foreign companies involved in Madagascar include Rio Tinto (RIO.L) and Sherritt International (S.TO) which plan to extract nickel, cobalt, bauxite and ilmenite.

Gemstones are already a big industry and exploration companies are looking for oil, gold, coal, chromium, platinum and uranium.

The government has accused Rajoelina of stirring up a revolt and called for calm and order across the capital Antananarivo.

"All this is the response of a population facing economic difficulties and an absence of democracy," one demonstrator told Reuters as flames billowed out of a supermarket behind him. Continued...

reference: At least two die in stormy Madagascar protests
Reuters

Ethiopia: US senators voice concern on opposition arrest

Ethiopia:
US senators
voice concern
on opposition arrest


Sudan Tribune
Sunday 25 January 2009

January 24, 2009 (WASHINGTON) — A group of US Senators sent a letter to the Ethiopian Prime Minister, Meles Zenawi, expressing their concern on the re-arrest of opposition chairs-woman and on the recently endorsed law on civic society groups, Sudan Tribune has learnt.

"We write our concern about several recent developments in your country, which we fear could make the important partnership between the United States and Ethiopia more difficult. We are deeply troubled that these events together appear to indicate an erosion of political freedom and the rule of law in Ethiopia," the Senators say.

"First we are concerned by the re-arrest of Unity for Democracy and Justice party leader Birtukan Mideksa and reports that her life sentence in prison has been reinstated" they said adding "a political opposition with the right to freedom of speech, press and association is essential to any vibrant democracy."

The letter is signed by Russell D. Feingol Chairman Subcommittee on African Affairs Committee on Foreign relations of the US Senate, Johnny Isakson Ranking member Sub Committee on African Affairs Committee on Foreign Relations, Patrick J. Leahy Chairman State & Foreign Ops Subcommittee Appropriations and Richard J. Durbin Chairman Human Rights & the Law Subcommittee on the Judiciary.

"We worry that Birtukans Re-arrest signals erosion to government’s commitment to those democratic principles. This is disappointing as it comes in advance to the nation’s election coming next year," underscored the lawmakers.

Currently UDJ party leader, Birtukan Mideksa has continued serving her life sentence after her pardon has been revoked following her refusal to confirm or deny to a statement she made in Europe which angered Meles Zenawi-led ruling party.

The opposition leader who had been released in July 2007, along with 37 other political opponents visited Sweden last year. Addressing her supporters there, Birtukan said that her party never asked the Ethiopian government for the pardon that led to her release from jail one year ago.

The US senate members also express their dismay on the passage of Ethiopia government’s law restricting civil society groups.

According to the recently passed controversial NGO law, civil society groups in Ethiopia that receive more than 10% of their total funding from sources outside Ethiopia are not allowed to interfere in any work related with human rights, gender equality, the rights of disabled, rights of children, or in the nations conflict management.

"While we respect your government’s right to regulate non-governmental organizations operating within Ethiopia, we fear that as written, this law will undermines the important work done by many organizations in those respective fields."

The US lawmakers expressed hope that the "broad discretionary powers granted" to the government by the controversial law would not be used as a political tool to impede the independence of civil society and obstruct its activities.

The Senators in addition have raised their concern on human right violation in the Volatile Ogaden region.

“We are concerned by reports over the last year that several civil society leaders and traditional elders in the Ogaden region of Ethiopia have been detained for extended periods without charge and then tried without due process,” they said.

They also underlined that many of the arrested people were involved in the needed efforts to bring peace in the Somali region. Also the senators said this "pattern of arrest" could exacerbate local grievances and radicalize the situation rather than quell the insurgency or bring political stability there.

The senators reminded the importance of partnership between USA and Ethiopia but added that "these troubling developments" in Ethiopia could undermine democratic progress and the rule of law.

refer: [Ethiopia: US senators voice concern on opposition arrest Sudan Tribune]

related:

  1. Ethiopia completes troops’ pullout from Somalia
  2. Ethiopia claims killing of rebel leader in Ogaden
  3. Ethiopia Commercial bank to open in Juba next month

Saturday, January 24, 2009

McGuinty to introduce back-to-work legislation to end York strike

McGuinty
to introduce back-to-work legislation
to end York strike

January 24, 2009

Ontario New Democrats on Saturday threw a roadblock in front of Premier Dalton McGuinty’s plans for the speedy passage Sunday of back-to-work legislation that would end the York University labour dispute.

"We will not be supporting this legislation and we will not be giving it automatic consent through the legislature,” NDP Leader Howard Hampton said Saturday.

The premier had hoped the legislation’s passage Sunday could put York students back in the classroom Monday. But the bill, which has the support of the Progressive Conservatives, requires three readings and without unanimous support of all MPPs it will likely take several days to pass.

Earlier this week, members of Canadian Union of Public Employees 3903, which represents striking teaching assistants, graduate assistants and contract faculty, voted 63 per cent against accepting a settlement offer from York.

The university said the deal, which includes a wage and benefits increase of 10.7 per cent, represented a reasonable offer. But CUPE dismissed it, highlighting what they see as inadequate job security for contract faculty, who must reapply for positions at the start of each academic year.

The ratification vote, supervised by Ontario’s Ministry of Labour, was forced on the 3,340 union members after the union leaders refused to put the offer to a vote.

Afterward, the province announced it was sending in a top mediator for “one more shot” at finding a resolution to end the strike. But on Saturday mediator Reg Pearson told the premier there was “no reasonable prospect of a negotiated settlement.”

The NDP_leader, however, believes negotiations should continue.

"We think that the university should go back to the bargaining table — they refused last week to bargain any further — we think that’s wrong,” Hampton said. "This is legislation that will have to be debated — I think the real issue is this — I think the university should go back to the bargaining table and bargain in good faith."

The premier sees things differently.

“I am absolutely convinced that both sides are in a deadlock,” McGuinty said at a Toronto news conference on Saturday.

Progressive Conservative Leader John Tory called McGuinty’s decision long overdue. “Our party has been calling for McGuinty to take action on this since November,” Tory said in a statement.

A students’ group — YorkNotHostage — said it was “extremely happy” with the premier’s decision.

“Back to work legislation is about putting students first,” said spokeswoman Catherine Divaris in a statement. “However, it is also fair to both sides in the labour dispute. Back to work legislation will send both sides to a neutral, third-party arbitrator.”

McGuinty also said Ontario Student Assistance Program support payments to students would be extended if York decides to lengthen the academic term.

York University’s 50,000 undergraduates have been shut out of classes since the strike began on Nov. 6.


full:McGuinty to introduce back-to-work legislation to end York strike Calgary Herald - 4 hours ago

Botswana's government defends new media law

Botswana's
new media law

Sello Motseta

GABORONE, Botswana


Botswana's government says reporters have nothing to fear from a new media law, but a journalism advocate calls the law repressive and the official defense misleading.

The law is the first of its kind in Botswana. It creates a media council with complaints and appeals committees appointed by the minister of communications. The minister also appoints the council's chief executive and can dissolve its executive committee.

The law aims to preserve media freedom and promote good ethical standards, as well as to "monitor the activities of the media" and create a body to "receive any complaints directed against media practitioners."

However, Botswana already had an independent, self-regulated Press Council and press advocates allege the government is trying to assert state control over the media.

The law, which was supported by the governing party was passed last year.

But lawmakers had asked for amendments and it had been expected to go to parliamentary committees for fine-tuning this year before becoming official. Instead, the government published it in the official gazette over the end of the year holidays — making it law. The move caught many journalists by surprise.

In a written response to questions from The Associated Press, presidential spokesman Jeff Ramsay said this week that the law does not require journalists to be accredited by the media council.

"If an individual does not wish to be accredited that is his or her prerogative," Ramsay said. "Unaccredited individuals, however, do run the risk of being seen as nonprofessionals."

He also said the council will not have the power to impose fines and prison terms on journalists it determines have violated standards.

When news emerged that the measure had been put into law, Thapelo Ndlovu, national director of the Botswana chapter of the Media Institute of Southern Africa had called it "a very repressive law."

Told of Ramsay's comments, Ndlovu added, "It is simply not true to say registration is voluntary. Ramsay is misleading people."

Ramsay's "interpretation of the fines and penalties in the act is also misleading and is based on a personal opinion," Ndlovu said.

Ndlovu's institute brings journalists together to lobby for media rights.

The Associated Press.
full:
Botswana's government defends new media law MSNBC

It was save jobs or do nothing - Rudd

THE Federal Government had to choose between doing nothing to save jobs or joining the big banks in a $4bn partnership to prop up the commercial property sector, Prime Minister Kevin Rudd says.

Mr Rudd confirmed the Government would join the four major Australian banks to set up a $4bn Australian Business Investment Partnership.

The banks will provide $2bn and the Federal government another $2bn to provide financial support for major commercial property projects including shopping centres, office towers and factories.

It would reduce the risk of Australian banks having to "fill the gap'' if foreign banks did not roll over their share of loans, Mr Rudd said at an Australia Day function in Perth.

"Our banks are strong and well capitalised and the (deposit) guarantee has enabled them to raise the funds they need to lend to Australian businesses,'' Mr Rudd said.

"But the Australian economy is global in nature and therefore affected by the health of foreign banks, as well as Australian banks.

"If banks do not allow clients to refinance as they would in normal conditions then companies can be forced to sell assets, often at low value.

"This endangers their financial health and that of the whole economy.''

Mr Rudd said lending by overseas banks represented half of the $285bn in syndicated loans issued to Australian businesses since 2006.

"Of those outstanding loans $75bn is set to fall due over the next two years,'' he said.

"If foreign banks do not roll over their share of these loans it would be difficult for Australia's four major banks to fill this gap on their own.

"The mathematics is fairly straightforward.''

Foreign banks carried more than $48bn or 28 per cent of lending to the Australian commercial property sector and were seeking to reduce their exposures, Mr Rudd said.

"That is why today the Government confirms that it will establish a $4bn Australian business investment partnership with the four major Australian banks.''

The move was a temporary contingency measure to provide liquidity support to viable major commercial property projects, the Prime Minister said.

The initial $4bn could be extended to up to $30bn of loanable capital through the issuing of government guaranteed debt, he said.

Mr Rudd said there was two options - to sit back and do nothing or act decisively.

"The alternative is to do nothing, the Government I lead will not embark upon that course of action,'' he said.

from: It was save jobs or do nothing - Rudd NEWS.com.au - 11 hours ago